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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1762 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
104th CONGRESS
  2d Session
                                S. 1762

_______________________________________________________________________

                                 AN ACT

 
     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.
                          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.
Sec. 113. Study regarding neutralization of the chemical weapons 
                            stockpile.
Sec. 114. Permanent authority to carry out arms initiative.
Sec. 115. Type classification of Electro Optic Augmentation (EOA) 
                            system.
Sec. 116. Bradley TOW 2 Test Program sets.
Sec. 117. Demilitarization of assembled chemical munitions.
                       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.
Sec. 125. Maritime prepositioning ship program enhancement.
Sec. 126. Additional exception from cost limitation for Seawolf 
                            submarine program.
Sec. 127. Radar modernization.
                     Subtitle D--Air Force Programs

Sec. 131. Multiyear contracting authority for the C-17 aircraft 
                            program.
                     Subtitle E--Reserve Components

Sec. 141. Assessments of modernization priorities of the reserve 
                            components.
         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.
Sec. 204. Funds for research, development, test, and evaluation 
                            relating to humanitarian demining 
                            technologies.
    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. Tier III minus unmanned aerial vehicle.
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.
Sec. 223. Advanced submarine technologies.
Sec. 224. Funding for basic research in nuclear seismic monitoring.
Sec. 225. Cyclone class craft self-defense.
Sec. 226. Computer-assisted education and training.
Sec. 227. Seamless High Off-Chip Connectivity.
Sec. 228. Cost-benefit analysis of F/A-18E/F aircraft program.
Sec. 229. National Polar-Orbiting Operational Environmental Satellite 
                            System.
Sec. 230. Surgical strike vehicle for use against hardened and deeply 
                            buried targets.
                 Subtitle C--Ballistic Missile Defense

Sec. 231. Conversion of ABM treaty to multilateral treaty.
Sec. 232. Funding for upper tier theater missile defense systems.
Sec. 233. Elimination of requirements for certain items to be included 
                            in the annual report on the ballistic 
                            missile defense program.
Sec. 234. ABM treaty defined.
Sec. 235. Scorpius space launch technology program.
Sec. 236. Corps SAM/MEADS program.
Sec. 237. Annual report on threat of attack by ballistic missiles 
                            carrying nuclear, chemical, or biological 
                            warheads.
Sec. 238. Air Force national missile defense plan.
Sec. 239. Extension of prohibition on use of funds to implement an 
                            international agreement concerning theater 
                            missile defense systems.
                       Subtitle D--Other Matters

Sec. 241. Live-fire survivability testing of F-22 aircraft.
Sec. 242. Live-fire survivability testing of V-22 aircraft.
Sec. 243. Amendment to University Research Initiative Support Program.
Sec. 244. Desalting technologies.
             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.
Sec. 315. Ocenographic ship operations and data analysis.
                   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 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.
Sec. 352. Authority for agreements with Indian tribes for services 
                            under Environmental Restoration Program.
                       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.
Sec. 368. Computer Emergency Response Team at Software Engineering 
                            Institute.
Sec. 369. Reimbursement under agreement for instruction of civilian 
                            students at Foreign Language Institute of 
                            the Defense Language Institute.
Sec. 370. Authority of Air National Guard to provide certain services 
                            at Lincoln Municipal Airport, Lincoln 
                            Nebraska.
              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.
Sec. 413. Personnel management relating to assignment to service in the 
                            Selective Service System.
              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. 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.
Sec. 506. Grade of Chief of Naval Research.
Sec. 507. Service credit for senior ROTC cadets and midshipmen in 
                            simultaneous membership program.
           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.
Sec. 518. Modified end strength authorization for military technicians 
                            for the Air National Guard for fiscal year 
                            1997.
                 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.
Sec. 523. Prohibition on reorganization of Army ROTC Cadet Command of 
                            termination of Senior ROTC units pending 
                            report on ROTC.
                       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.
Sec. 540. Chief and assistant chief of Army Nurse Corps.
Sec. 541. Chief and assistant chief of Air Force Nurse Corps.
Sec. 542. Waiver of time limitations for award of certain decorations 
                            to specified persons.
Sec. 543. Military Personnel Stalking Punishment and Prevention Act of 
                            1996.
      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.
Sec. 636. Prevention of circumvention of court order by waiver of 
                            retired pay to enhance civil service 
                            retirement annuity.
                       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.
Sec. 643. Payment to Vietnamese commandos captured and interned by 
                            North Vietnam.
                   TITLE VII--HEALTH CARE PROVISIONS

                          Subtitle A--General

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. Enhancement of third-party collection and secondary payer 
                            authorities under CHAMPUS.
Sec. 705. Codification of authority to credit CHAMPUS collections to 
                            program accounts.
Sec. 706. Comptroller General review of health care activities of the 
                            Department of Defense relating to Persian 
                            Gulf illnesses.
Sec. 707. Restoration of previous policy regarding restrictions on use 
                            of Department of Defense Medical 
                            Facilities.
Sec. 708. Plans for medicare subvention demonstration programs.
Sec. 709. Research and benefits relating to Gulf War service.
Sec. 710. Preventive health care screening for colon and prostate 
                            cancer.
          Subtitle B--Uniformed Services Treatment Facilities

Sec. 721. Definitions.
Sec. 722. Inclusion of designated providers in uniformed services 
                            health care delivery system.
Sec. 723. Provision of uniform benefit by designated providers.
Sec. 724. Enrollment of covered beneficiaries.
Sec. 725. Application of CHAMPUS payment rules.
Sec. 726. Payments for services.
Sec. 727. Repeal of superseded authorities.
  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.
Sec. 810. Research under transactions other than contracts and grants.
Sec. 811. Reporting requirement under demonstration project for 
                            purchase of fire, security, police, public 
                            works, and utility services from local 
                            Government agencies.
Sec. 812. Test programs for modernization-through-spares.
Sec. 813. Pilot program for transfer of defense technology information 
                            to private industry.
      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. Redesignation of Office of Naval Records and History Fund and 
                            correction of related references.
Sec. 906. Role of Director of Central Intelligence in appointment and 
                            evaluation of certain intelligence 
                            officials.
Sec. 907. Matters to be considered in next assessment of current 
                            missions, responsibilities, and force 
                            structure of the unified combatant 
                            commands.
Sec. 908. Actions to limit adverse effects of establishment of National 
                            Missile Defense Joint Program Office on 
                            private sector employment.
            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. Reimbursement of Department of Defense for costs of disaster 
                            assistance provided outside the United 
                            States.
Sec. 1008. Fisher House Trust Fund for the Navy.
Sec. 1009. Designation and liability of disbursing and certifying 
                            officials for the Coast Guard.
Sec. 1010. Authority to suspend or terminate collection actions against 
                            deceased members of the Coast Guard.
Sec. 1011. 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.
Sec. 1025. Sense of the Senate concerning USS LCS 102 (LSSL 102).
                  Subtitle C--Counter-Drug Activities

Sec. 1031. Authority to provide additional support for counter-drug 
                            activities of Mexico.
Sec. 1032. 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.
Sec. 1044. Prohibition on collection and release of detailed satellite 
                            imagery relating to Israel and other 
                            countries and areas.
Sec. 1045. Defense burdensharing.
Sec. 1046. Sense of the Senate concerning export controls.
Sec. 1047. Report on NATO enlargement.
            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.
Sec. 1054. Annual report of reserve forces policy board.
Sec. 1055. Information on proposed funding for the Guard and Reserve 
                            components in future-years Defense 
                            programs.
Sec. 1056. Report on facilities used for testing launch vehicle 
                            engines.
                       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.
Sec. 1072. Sense of the Senate regarding the United States-Japan 
                            semiconductor trade agreement.
Sec. 1073. Food donation pilot program at the service academies.
Sec. 1074. Designation of memorial as National D-Day Memorial.
Sec. 1075. Improvements to National Security Education Program.
Sec. 1076. Reimbursement for excessive compensation of contractor 
                            personnel prohibited.
Sec. 1077. Sense of the Senate on Department of Defense sharing of 
                            experiences under military youth programs.
Sec. 1078. Sense of the Senate on Department of Defense sharing of 
                            experiences with military child care.
Sec. 1079. Increase in penalties for certain traffic offenses on 
                            military installations.
Sec. 1080. Pharmaceutical industry special equity.
Sec. 1081. Clarification of national security systems to which the 
                            Information Technology Management Reform 
                            Act of 1996 applies.
Sec. 1082. Sale of chemicals used to namufacture controlled substances 
                            by Federal departments or agencies.
Sec. 1083. Operational support airlift aircraft.
Sec. 1084. Sense of Senate regarding Bosnia and Herzegovina.
Sec. 1085. Strengthening certain sanctions against nuclear 
                            proliferation activities.
Sec. 1086. Technical amendment.
Sec. 1087. Facility for military dependent children with disabilities, 
                            Lackland Air Force Base, Texas.
Sec. 1088. Prohibition on the distribution of information relating to 
                            explosive materials for a criminal purpose.
Sec. 1089. Exemption for savings institutions serving military 
                            personnel.
          Subtitle G--Review of Armed Forces Force Structures

Sec. 1091. Short title.
Sec. 1092. Findings.
Sec. 1093. Quadrennial Defense Review
Sec. 1094. National Defense Panel.
Sec. 1095. Postponement of deadlines.
Sec. 1096. Definitions.
           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.
               Subtitle C--Defense Intelligence Personnel

Sec. 1131. Short title.
Sec. 1132. Civilian intelligence personnel management.
Sec. 1133. Repeals.
Sec. 1134. Clerical amendments.
      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.
        TITLE XIII--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

Sec. 1301. Short title.
Sec. 1302. Findings.
Sec. 1303. Definitions.
                   Subtitle A--Domestic Preparedness

Sec. 1311. Emergency response assistance program.
Sec. 1312. Nuclear, chemical, and biological emergency response.
Sec. 1313. Military assistance to civilian law enforcement officials in 
                            emergency situations involving biological 
                            or chemical weapons.
Sec. 1314. Testing of preparedness for emergencies involving nuclear, 
                            radiological, chemical, and biological 
                            weapons.
  Subtitle B--Interdiction of Weapons of Mass Destruction and Related 
                               Materials

Sec. 1321. United States border security.
Sec. 1322. Nonproliferation and counter-proliferation research and 
                            development.
Sec. 1323. International Emergency Economic Powers Act.
Sec. 1324. Criminal penalties.
Sec. 1325. International border security.
Subtitle C--Control and Disposition of Weapons of Mass Destruction and 
            Related Materials Threatening the United States

Sec. 1331. Protection and control of materials constituting a threat to 
                            the United States.
Sec. 1332. Verification of dismantlement and conversion of weapons and 
                            materials.
Sec. 1333. Elimination of plutonium production.
Sec. 1334. Industrial partnership programs to demilitarize weapons of 
                            mass destruction production facilities.
Sec. 1335. Lab-to-lab program to improve the safety and security of 
                            nuclear materials.
Sec. 1336. Cooperative activities on security of highly enriched 
                            uranium used for propulsion of Russian 
                            ships.
Sec. 1337. Military-to-military relations.
Sec. 1338. Transfer authority.
    Subtitle D--Coordination of Policy and Countermeasures Against 
              Proliferation of Weapons of Mass Destruction

Sec. 1341. National coordinator on nonproliferation.
Sec. 1342. National Security Council Committee on Nonproliferation.
Sec. 1343. Comprehensive preparedness program.
Sec. 1344. Termination.
                       Subtitle E--Miscellaneous

Sec. 1351. Contracting policy.
Sec. 1352. Transfers of allocations among cooperative threat reduction 
                            programs.
Sec. 1353. Additional certifications.
Sec. 1354. Purchase of low-enriched uranium derived from Russian highly 
                            enriched uranium.
Sec. 1355. Purchase, packaging, and transportation of fissile materials 
                            at risk of theft.
Sec. 1356. Reductions in authorization of appropriations.
               TITLE XIV--FEDERAL EMPLOYEE TRAVEL REFORM

Sec. 1401. Short title.
                    Subtitle A--Relocation Benefits

Sec. 1411. Modification of allowance for seeking permanent residence 
                            quarters.
Sec. 1412. Modification of temporary quarters subsistence expenses 
                            allowance.
Sec. 1413. Modification of residence transaction expenses allowance.
Sec. 1414. Authority to pay for property management services.
Sec. 1415. Authority to transport a privately owned motor vehicle 
                            within the continental United States
Sec. 1416. Authority to pay limited relocation allowances to an 
                            employee who is performing an extended 
                            assignment.
Sec. 1417. Authority to pay a home marketing incentive.
Sec. 1418. Conforming amendments.
                  Subtitle B--Miscellaneous Provisions

Sec. 1431. Repeal of the long-distance telephone call certification 
                            requirement.
Sec. 1432. Transfer of authority to issue regulations.
Sec. 1433. Report on assessment of cost savings.
Sec. 1434. Effective date; issuance of regulations.

                          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, $5,889,519,000.

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)''.

SEC. 113. STUDY REGARDING NEUTRALIZATION OF THE CHEMICAL WEAPONS 
              STOCKPILE.

    (a) Study.--The Secretary of Defense shall conduct a study to 
determine the cost of incineration of the current chemical munitions 
stockpile by building incinerators at each existing facility compared 
to the proposed cost of dismantling those same munitions, neutralizing 
them at each storage site and transporting the neutralized remains and 
all munitions parts to a centrally located incinerator within the 
United States for incineration.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit to the appropriate 
committees of the Congress a report on the study carried out under 
subsection (a).

SEC. 114. PERMANENT AUTHORITY TO CARRY OUT ARMS INITIATIVE.

    Section 193(a) of the Armament Retooling and Manufacturing Support 
Initiative Act of 1992 (subtitle H of title I of Public Law 102-484; 10 
U.S.C. 2501 note) is amended by striking out ``During fiscal years 1993 
through 1996'', and inserting in lieu thereof ``During fiscal years 
1993 through 1998''.

SEC. 115. TYPE CLASSIFICATION OF ELECTRO OPTIC AUGMENTATION (EOA) 
              SYSTEM.

    (a) Requirement.--The Secretary of the Army shall type classify the 
Electro Optic Augmentation (EOA) system.
    (b) Funding.--Of the amounts authorized to be appropriated for the 
Army by this division, $100,000 shall made be available to the Armored 
Systems Modernization Program manager for the type classification 
required by subsection (a).

SEC. 116. BRADLEY TOW 2 TEST PROGRAM SETS.

    Of the funds authorized to be appropriated under section 101(3) of 
the National Defense Authorization Act for Fiscal Year 1996 (110 Stat. 
204), $6,000,000 is available for the procurement of Bradley TOW 2 Test 
Program sets.

SEC. 117. DEMILITARIZATION OF ASSEMBLED CHEMICAL MUNITIONS.

    (a) Pilot Program.--The Secretary of Defense shall conduct a pilot 
program to identify and demonstrate feasible alternatives to 
incineration for the demilitarization of assembled chemical munitions.
    (b) Program Requirements.--(1) The Secretary of Defense shall 
designate an executive agent to carry out the pilot program required to 
be conducted under subsection (a).
    (2) The executive agent shall--
            (A) be an officer or executive of the United States 
        Government;
            (B) be accountable to the Secretary of Defense; and
            (C) not be, or have been, in direct or immediate control of 
        the chemical weapon stockpile demilitarization program 
        established by 1412 of the Department of Defense Authorization 
        Act, 1986 (50 U.S.C. 1521) or the alternative disposal process 
        program carried out under sections 174 and 175 of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 50 U.S.C. 1521 note).
    (3) The executive agent may--
            (A) carry out the pilot program directly;
            (B) enter into a contract with a private entity to carry 
        out the pilot program; or
            (C) transfer funds to another department or agency of the 
        Federal Government in order to provide for such department or 
        agency to carry out the pilot program.
    (4) A department or agency that carries out the pilot program under 
paragraph (3)(C) may not, for purposes of the pilot program, contract 
with or competitively select the organization within the Army that 
exercises direct or immediate management control over either program 
referred to in paragraph (2)(C).
    (5) The pilot program shall terminate not later than September 30, 
2000.
    (c) Annual Report.--Not later than December 15 of each year in 
which the Secretary carries out the pilot program, the Secretary shall 
submit to Congress a report on the activities under the pilot program 
during the preceding fiscal year.
    (d) Evaluation and Report.--Not later than December 31, 2000, the 
Secretary of Defense shall--
            (1) evaluate each demilitarization alternative identified 
        and demonstrated under the pilot program to determine whether 
        that alternative--
                    (A) is as safe and cost efficient as incineration 
                for disposing of assembled chemical munitions; and
                    (B) meets the requirements of section 1412 of the 
                Department of Defense Authorization Act, 1986; and
            (2) submit to Congress a report containing the evaluation.
    (e) Limitation on Long Lead Contracting.--(1) Notwithstanding any 
other provision of law and except as provided in paragraph (2), the 
Secretary may not enter into any contract for the purchase of long lead 
materials considered to be baseline incineration specific materials for 
the construction of an incinerator at any site in Kentucky or Colorado, 
within one year of the date of enactment of this Act or, thereafter 
until the executive agent designated for the pilot program submits an 
application for such permits as are necessary under the law of the 
State of Kentucky or the law of the State of Colorado, as the case may 
be, for the construction at that site of a plant for demilitarization 
of assembled chemical munitions by means of an alternative to 
incineration.
    (2) Provided, however, That the Secretary may enter into a contract 
described in paragraph (1) beginning 60 days after the date on which 
the Secretary submits to Congress--
            (A) the report required by subsection (d)(2); and
            (B) the certification of the executive agent that there 
        exists no alternative technology as safe and cost efficient as 
        incineration for demilitarizing chemical munitions at non-bulk 
        sites that can meet the requirements of section 1412 of the 
        Department of Defense Authorization Act, 1986.
    (f) Assembled Chemical Munition Defined.--For the purpose of this 
section, the term ``assembled chemical munition'' means an entire 
chemical munition, including component parts, chemical agent, 
propellant, and explosive.
    (g) Funding.--(1) Of the amount authorized to be appropriated under 
section 107, $60,000,000 shall be available for the pilot program under 
this section. Such funds may not be derived from funds to be made 
available under the chemical demilitarization program for the 
alternative technologies research and development program at bulk 
sites.
    (2) Funds made available for the pilot program pursuant to 
paragraph (1) shall be made available to the executive agent for use 
for the pilot program.

                       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) In addition to the purposes for which the amount authorized to 
be appropriated by section 102(a)(3) is available under subparagraphs 
(B) and (C) of paragraph (1), the amounts available under such 
subparagraphs are also available for contracts with Electric Boat 
Division and Newport News Shipbuilding to carry out the provisions of 
the ``Memorandum of Agreement Among the Department of the Navy, 
Electric Boat Corporation (EB) and Newport News Shipbuilding and 
Drydock Company (NNS) Concerning the New Attack Submarine'', dated 
April 5, 1996, relating to design data transfer, design improvements, 
integrated process teams, and updated design base.
    (b) 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.
    (e) Next Attack Submarine After New Attack Submarine.--The 
Secretary of Defense shall modify the plan (relating to development of 
a program leading to production of a more capable and less expensive 
submarine than the New Attack Submarine) that was submitted to Congress 
pursuant to section 131(c) of Public Law 104-106 (110 Stat. 208) in 
order to provide in such plan for selection of a design for a next 
submarine for serial production not earlier than fiscal year 2000 
(rather than fiscal year 2003, as provided in paragraph (3)(B) of such 
section 131(c)).

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 Multiyear Procurement of Twelve Vessels.--The 
Secretary of the Navy is authorized, pursuant to section 2306b of title 
10, United States Code, to enter into multiyear contracts for the 
procurement of a total of 12 Arleigh Burke class destroyers at a 
procurement rate of three ships in each of fiscal years, 1998, 1999, 
2000, and 2001 in accordance with this subsection and subsections 
(a)(4) and (c), subject to the availability of appropriations for such 
destroyers. A contract for construction of one or more vessels that is 
entered into in accordance with this subsection shall include a clause 
that limits the liability of the Government to the contractor for any 
termination of the contract.

SEC. 125. MARITIME PREPOSITIONING SHIP PROGRAM ENHANCEMENT.

    Section 2218(f) of title 10, United States Code, shall not apply in 
the case of the purchase of three ships for the purpose of enhancing 
Marine Corps prepositioning ship squadrons.

SEC. 126. ADDITIONAL EXCEPTION FROM COST LIMITATION FOR SEAWOLF 
              SUBMARINE PROGRAM.

    Section 133 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 211) is amended--
            (1) in subsection (a), by striking out ``subsection (b)'' 
        and inserting in lieu thereof ``subsections (b) and (c)''; and
            (2) by striking out subsection (c) and inserting in lieu 
        thereof the following:
    ``(c) Costs Not Included.--The previous obligations of $745,700,000 
for the SSN-23, SSN-24, and SSN-25 submarines, out of funds 
appropriated for fiscal years 1990, 1991, and 1992, that were 
subsequently canceled (as a result of a cancellation of such 
submarines) shall not be taken into account in the application of the 
limitation in subsection (a).''.

SEC. 127. RADAR MODERNIZATION.

    Funds appropriated for the Navy for fiscal years before fiscal year 
1997 may not be used for development and procurement of the Pulse 
Doppler Upgrade modification to the AN/SPS-48E radar system.

                     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.

                     Subtitle E--Reserve Components

SEC. 141. ASSESSMENTS OF MODERNIZATION PRIORITIES OF THE RESERVE 
              COMPONENTS.

    (a) Assessments Required.--Not later than December 1, 1996, each 
officer referred to in subsection (b) shall submit to the congressional 
defense committees an assessment of the modernization priorities 
established for the reserve component or reserve components for which 
that officer is responsible.
    (b) Responsible Officers.--The officers required to submit a report 
under subsection (a) are as follows:
            (1) The Chief of the National Guard Bureau.
            (2) The Chief of Army Reserve.
            (3) The Chief of Air Force Reserve.
            (4) The Director of Naval Reserve.
            (5) The Commanding General, Marine Forces Reserve.

         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, $14,786,356,000.
            (4) For Defense-wide activities, $9,699,542,000, 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.

SEC. 204. FUNDS FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION 
              RELATING TO HUMANITARIAN DEMINING TECHNOLOGIES.

    Of the amounts authorized to be appropriated by section 201(4), 
$18,000,000 shall be available for research, development, test, and 
evaluation activities relating to humanitarian demining technologies 
(PE0603120D), to be administered by the Assistant Secretary of Defense 
for Special Operations and Low Intensity Conflict.

    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. TIER III MINUS UNMANNED AERIAL VEHICLE.

    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. The report shall include--
            (1) a comparison of--
                    (A) the results of the review, with
                    (B) the results of the last independent estimate of 
                production costs of the program that was prepared by 
                the Cost Analysis Improvement Group in July 1991; and
            (2) a description of any major changes in programmatic 
        assumptions that have occurred since the estimate referred to 
        in paragraph (1)(B) was made, including any major change in 
        assumptions regarding the program schedule, the quantity of 
        aircraft to be developed and acquired, and the annual rates of 
        production, together with an assessment of the effects of such 
        changes on the program.
    (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.

SEC. 223. ADVANCED SUBMARINE TECHNOLOGIES.

    (a) Amounts Authorized From Navy RDT&E Account.--Of the amount 
authorized to be appropriated by section 201(2)--
            (1) $489,443,000 is available for the design of the 
        submarine previously designated by the Navy as the New Attack 
        Submarine; and
            (2) $100,000,000 is available to address the inclusion on 
        future nuclear attack submarines of core advanced technologies, 
        category I advanced technologies, and category II advanced 
        technologies, as such advanced technologies are identified by 
        the Secretary of Defense in Appendix C of the report of the 
        Secretary entitled ``Report on Nuclear Attack Submarine 
        Procurement and Submarine Technology'', submitted to Congress 
        on March 26, 1996.
    (b) Certain Technologies To Be Emphasized.--In using funds made 
available in accordance with subsection (a)(2), the Secretary of the 
Navy shall emphasize research, development, test, and evaluation of the 
technologies identified by the Submarine Technology Assessment Panel 
(in the final report of the panel to the Assistant Secretary of the 
Navy for Research, Development, and Acquisition, dated March 15, 1996) 
as having the highest priority for initial investment.
    (c) Shipyards Involved in Technology Development.--To further 
implement the recommendations of the Submarine Technology Assessment 
Panel, the Secretary of the Navy shall ensure that the shipyards 
involved in the construction of nuclear attack submarines are also 
principal participants in the process of developing advanced submarine 
technologies and including the technologies in future submarine 
designs. The Secretary shall ensure that those shipyards have access 
for such purpose (under procedures prescribed by the Secretary) to the 
Navy laboratories and the Office of Naval Intelligence and (in 
accordance with arrangements to be made by the Secretary) to the 
Defense Advanced Research Projects Agency.
    (d) Funding for Contracts Under 1996 Agreement Among the Navy and 
Shipyards.--In addition to the purposes of which the amount authorized 
to be appropriated by section 201(2) are available under paragraphs (1) 
and (2) of subsection (a), the amounts available under such paragraphs 
are also available for contracts with Electric Boat Division and 
Newport News Shipbuilding to carry out the provisions of the 
``Memorandum of Agreement Among the Department of the Navy, Electric 
Boat Corporation (EB), and Newport News Shipbuilding and Drydock 
Company (NNS) Concerning the New Attack Submarine'', dated April 5, 
1996, for research and development activities under that memorandum of 
agreement.

SEC. 224. FUNDING FOR BASIC RESEARCH IN NUCLEAR SEISMIC MONITORING.

    Of the amount authorized to be appropriated by section 201(3) and 
made available for arms control implementation for the Air Force 
(account PE0305145F), $6,500,000 shall be available for basic research 
in nuclear seismic monitoring.

SEC. 225. CYCLONE CLASS CRAFT SELF-DEFENSE.

    (a) Study Required.--Not later than March 31, 1997, the Secretary 
of Defense shall--
            (1) carry out a study of vessel self-defense options for 
        the Cyclone class patrol craft; and
            (2) submit to the Committee on Armed Services of the Senate 
        and the Committee on National Security of the House of 
        Representatives a report on the results of the study.
    (b) SOCOM Involvement.--The Secretary shall carry out the study 
through the Commander of the Special Operations Command.
    (c) Specific System To Be Evaluated.--The study under subsection 
(a) shall include an evaluation of the BARAK ship self-defense missile 
system.

SEC. 226. COMPUTER-ASSISTED EDUCATION AND TRAINING.

    Of the amount authorized to be appropriated under section 201(4), 
$10,000,000 shall be available under program element 0601103D for 
computer-assisted education and training at the Defense Advanced 
Research Projects Agency.

SEC. 227. SEAMLESS HIGH OFF-CHIP CONNECTIVITY.

    Of the amount authorized to be appropriated by this Act, $7,000,000 
shall be available for the Defense Advanced Research Projects Agency 
for research and development on Seamless High Off-Chip Connectivity 
(SHOCC) under the materials and electronic technology program (PE 
0602712E).

SEC. 228. COST-BENEFIT ANALYSIS OF F/A-18E/F AIRCRAFT PROGRAM.

    (a) Report on Program.--Not later than March 30, 1997, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the F/A-18E/F aircraft program.
    (b) Content of Report.--The report shall contain the following:
            (1) A review of the F/A-18E/F aircraft program.
            (2) An analysis and estimate of the production costs of the 
        program for the total number of aircraft realistically expected 
        to be procured at each of three annual production rates as 
        follows:
                    (A) 18 aircraft.
                    (B) 24 aircraft.
                    (C) 36 aircraft.
            (3) A comparison of the costs and benefits of the program 
        with the costs and benefits of the F/A-18C/D aircraft program 
        taking into account the operational combat effectiveness of the 
        aircraft.
    (c) Limitation on Use of Funds Pending Transmittal of Report.--No 
more than 90 percent of the funds authorized to be appropriated by this 
Act may be obligated or expended for the procurement of F/A-18E/F 
aircraft before the date that is 30 days after the date on which the 
congressional defense committees receive the report required under 
subsection (a).

SEC. 229. NATIONAL POLAR-ORBITING OPERATIONAL ENVIRONMENTAL SATELLITE 
              SYSTEM.

    (a) Funds Available for Polar-Orbiting Operational Environmental 
Satellite System.--Of the amount authorized to be appropriated under 
section 201(3), $29,024,000 is available for the National Polar-
Orbiting Operational Environmental Satellite System (Space) program (PE 
0603434F).
    (b) Funds Available for Intercontinental Ballistic Missile.--Of the 
amount authorized to be appropriated under section 201(3), $212,895,000 
is available for the Intercontinental Ballistic Missile--EMD program 
(PE 0604851F).

SEC. 230. SURGICAL STRIKE VEHICLE FOR USE AGAINST HARDENED AND DEEPLY 
              BURIED TARGETS.

    (a) Amount Authorized.--Of the amount authorized to be appropriated 
by section 201(4) for counterproliferation support program $3,000,000 
shall be made available to the Air Combat Command for research and 
development into the near-term development of a capability to defeat 
hardened and deeply buried targets, including tunnels and deeply buried 
facilities for the production and storage of chemical, biological, and 
nuclear weapons and their delivery systems.
    (b) Requirements.--Nothing in this section shall be construed as 
precluding the application of the requirements of the Competition in 
Contracting Act.

                 Subtitle C--Ballistic Missile Defense

SEC. 231. CONVERSION OF ABM TREATY TO MULTILATERAL TREATY.

    (a) Fiscal Year 1997.--It is the sense of the Senate that 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. 232. 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. 233. 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. 234. 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.

SEC. 235. SCORPIUS SPACE LAUNCH TECHNOLOGY PROGRAM.

    Of the amount authorized to be appropriated under section 201(4) 
for the Ballistic Missile Defense Organization for Support 
Technologies/Follow-On Technologies (PE 63173C), up to $7,500,000 is 
available for the Scorpius space launch technology program.

SEC. 236. CORPS SAM/MEADS PROGRAM.

    (a) Funding.--Of the amount authorized to be appropriated under 
section 201(4)--
            (1) $56,200,000 is available for the Corps surface-to-air 
        missile (SAM)/Medium Extended Air Defense System (MEADS) 
        program (PE63869C); and
            (2) $515,711,000 is available for Other Theater Missile 
        Defense programs, projects, and activities (PE63872C).
    (b) International Cooperation.--The Secretary of Defense may carry 
out the program referred to in subsection (a) in accordance with the 
memorandum of understanding entered into on May 25, 1996 by the 
governments of the United States, Germany, and Italy regarding 
international cooperation on such program (including any amendments to 
the memorandum of understanding).
    (c) Limitations.--Not more than $15,000,000 of the amount available 
for the Corps SAM/MEADS program under subsection (a) may be obligated 
until the Secretary of Defense submits to the congressional defense 
committees the following:
            (1) An initial program estimate for the Corps SAM/MEADS 
        program, including a tentative schedule of major milestones and 
        an estimate of the total program cost through initial 
        operational capability.
            (2) A report on the options associated with the use of 
        existing systems, technologies, and program management 
        mechanisms to satisfy the requirement for the Corps surface-to-
        air missile, including an assessment of cost and schedule 
        implications in relation to the program estimate submitted 
        under paragraph (1).
            (3) A certification that there will be no increase in 
        overall United States funding commitment to the project 
        definition and validation phase of the Corps SAM/MEADS program 
        as a result of the withdrawal of France from participation in 
        the program.

SEC. 237. ANNUAL REPORT ON THREAT OF ATTACK BY BALLISTIC MISSILES 
              CARRYING NUCLEAR, CHEMICAL, OR BIOLOGICAL WARHEADS.

    (a) Findings.--Congress makes the following findings:
            (1) The worldwide proliferation of ballistic missiles is a 
        potential threat to the United States national interests 
        overseas and challenges United States defense planning.
            (2) In the absence of a national missile defense, the 
        United States remains vulnerable to long-range missile threats.
            (3) Russia has a ground-based missile defense system 
        deployed around Moscow.
            (4) Several countries, including Iraq, Iran, and North 
        Korea may soon be technologically capable of threatening the 
        United States and Russia with ballistic missile attack.
    (b) Report Required.--(1) Each year, the President shall submit to 
Congress a report on the threats to the United States of attack by 
ballistic missiles carrying nuclear, biological, or chemical warheads.
    (2) The President shall submit the first report not later than 180 
days after the date of the enactment of this Act.
    (c) Content of Report.--The report shall contain the following:
            (1) A list of all countries thought to have nuclear, 
        chemical, or biological weapons, the estimated numbers of such 
        weapons that each country has, and the destructive potential of 
        the weapons.
            (2) A list of all countries thought to have ballistic 
        missiles, the estimated number of such missiles that each 
        country has, and an assessment of the ability of those 
        countries to integrate their ballistic missile capabilities 
        with their nuclear, chemical, or biological weapons 
        technologies.
            (3) A comparison of the United States civil defense 
        capabilities with the civil defense capabilities of each 
        country that has nuclear, chemical, or biological weapons and 
        ballistic missiles capable of delivering such weapons.
            (4) An estimate of the number of American fatalities and 
        injuries that could result, and an estimate of the value of 
        property that could be lost, from an attack on the United 
        States by ballistic missiles carrying nuclear, chemical, or 
        biological weapons if the United States were left undefended by 
        a national missile defense system covering all 50 States.
            (5) Assuming the use of any existing theater ballistic 
        missile defense system for defense of the United States, a list 
        of the States that would be left exposed to nuclear ballistic 
        missile attacks and the criteria used to determine which States 
        would be left exposed.
            (6) The means by which the United States is preparing to 
        defend itself against the potential threat of ballistic missile 
        attacks by North Korea, Iran, Iraq, and other countries 
        obtaining ballistic missiles capable of delivering nuclear, 
        chemical, and biological weapons in the near future.
            (7) For each country that is capable of attacking the 
        United States with ballistic missiles carrying a nuclear, 
        biological, or chemical weapon, a comparison of--
                    (A) the vulnerability of the United States to such 
                an attack if theater missile defenses were used to 
                defend against the attack; and
                    (B) the vulnerability of the United States to such 
                an attack if a national missile defense were in place 
                to defend against the attack.

SEC. 238. AIR FORCE NATIONAL MISSILE DEFENSE PLAN.

    (a) Sense of the Senate.--It is the sense of the Senate that--
            (1) the Air Force proposal for a Minuteman based national 
        missile defense system is an important national missile defense 
        option and is worthy of serious consideration; and
            (2) the Secretary of Defense should give the Air Force 
        National Missile Defense Proposal full consideration.
    (b) Report.--Not later than 120 days after the enactment of this 
Act, the Secretary of Defense shall provide the congressional defense 
committees a report on the following matters in relation to the Air 
Force National Missile Defense Proposal:
            (1) The cost and operational effectiveness of a system that 
        could be developed pursuant to the Air Forces' plan.
            (2) The Arms Control implications of such system.
            (3) Growth potential to meet future threats.
            (4) The Secretary's recommendation for improvements to the 
        Air Force's plan.

SEC. 239. EXTENSION OF PROHIBITION ON USE OF FUNDS TO IMPLEMENT AN 
              INTERNATIONAL AGREEMENT CONCERNING THEATER MISSILE 
              DEFENSE SYSTEMS.

    Section 235(c) of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 232) is amended in the matter 
preceding paragraph (1) by inserting ``or 1997'' after ``fiscal year 
1996''.

                       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.

SEC. 243. AMENDMENT TO UNIVERSITY RESEARCH INITIATIVE SUPPORT PROGRAM.

    Section 802(c) of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 107 Stat. 1701; 10 U.S.C. 2358 note) is 
amended by striking out ``fiscal years before the fiscal year in which 
the institution submits a proposal'' and inserting in lieu thereof 
``most recent fiscal years for which complete statistics are available 
when proposals are requested''.

SEC. 244. DESALTING TECHNOLOGIES.

    (a) Findings.--Congress makes the following findings:
            (1) Access to scarce fresh water is likely to be a cause of 
        future military conflicts in the Middle East and has a direct 
        impact on stability and security in the region.
            (2) The Middle East is an area of vital and strategic 
        importance to the United States.
            (3) The United States has played a military role in the 
        Middle East, most recently in the Persian Gulf War, and may 
        likely be called upon again to deter aggression in the region.
            (4) United States troops have used desalting technologies 
        to guarantee the availability of fresh water in past 
        deployments in the Middle East.
            (5) Adequate, efficient, and cheap access to high-quality 
        fresh water will be vital to maintaining the readiness and 
        sustainability of United States troops, and those of our 
        allies.
    (b) Sense of Senate.--It is the sense of the Senate that, as 
improved access to fresh water will be an important factor in helping 
prevent future conflicts in the Middle East, the United States should, 
in cooperation with its allies, promote and invest in technologies to 
reduce the costs of converting saline water into fresh water.
    (c) Funding for Research and Development.--Of the amounts 
authorized to be appropriated by this title, the Secretary shall place 
greater emphasis on making funds available for research and development 
into efficient and economical processes and methods for converting 
saline water into fresh water.

             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.
    ``(c) National Coastal Data Center.--(1) The Secretary of the Navy 
shall establish a National Coastal Data Center at each of two 
educational institutions that are either well-established oceanographic 
institutes or graduate schools of oceanography. The Secretary shall 
select for the center one institution located at or near the east coast 
of the continental United States and one institution located at or near 
the west coast of the continental United States.
    ``(2) The purpose of the center is to collect, maintain, and make 
available for research and educational purposes information on coastal 
oceanographic phenomena.
    ``(3) The Secretary shall complete the establishment of the 
National Coastal Data Center not later than one year after the date of 
the enactment of the National Defense Authorization Act for Fiscal Year 
1997.
``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, $17,949,339,000.
            (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, $2,699,173,000.
            (12) For the Defense Inspector General, $136,501,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $6,797,000.
            (14) For Environmental Restoration, Army, $356,916,000.
            (15) For Environmental Restoration, Navy, $302,900,000.
            (16) For Environmental Restoration, Air Force, 
        $414,700,000.
            (17) For Environmental Restoration, Defense-wide, 
        $258,500,000.
            (18) For 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.

SEC. 315. OCEANOGRAPHIC SHIP OPERATIONS AND DATA ANALYSIS.

    (a) Funds Authorized.--Of the funds provided by section 301(2), an 
additional $6,200,000 may be authorized for the reduction, storage, 
modeling and conversion of oceanographic data for use by the Navy, 
consistent with Navy's requirements.
    (b) Purpose.--Such funds identified in subsection (a) shall be in 
addition to such amounts already provided for this purpose in the 
budget request.

                   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.
            (9) 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.
            (10) The workloads necessary to maintain Government owned 
        and operated depots at 50 percent, 70 percent, and 85 percent 
        of operating capacity.
            (11) 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.
            (12) 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.
            (13) 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 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 accounts
    ``(a) Establishment of Accounts.--There are hereby established in 
the Department of Defense the following accounts:
            ``(1) An account to be known as the `Defense Environmental 
        Restoration Account'.
            ``(2) An account to be known as the `Army Environmental 
        Restoration Account'.
            ``(3) An account to be known as the `Navy Environmental 
        Restoration Account'.
            ``(4) An account to be known as the `Air Force 
        Environmental Restoration Account'.
    ``(b) Obligation of Authorized Amounts.--Funds authorized for 
deposit in an account under subsection (a) may be obligated or expended 
from the account only in order to carry out the environmental 
restoration functions of the Secretary of Defense and the Secretaries 
of the military departments under this chapter and under any other 
provision of law. Funds so authorized shall remain available until 
expended.
    ``(c) Budget Reports.--In proposing the budget for any fiscal year 
pursuant to section 1105 of title 31, the President shall set forth 
separately the amounts requested for environmental restoration programs 
of the Department of Defense and of each of the military departments 
under this chapter and under any other Act.
    ``(d) Amounts Recovered.--The following amounts shall be credited 
to the appropriate environmental restoration account:
            ``(1) Amounts recovered under CERCLA for response actions.
            ``(2) Any other amounts recovered from a contractor, 
        insurer, surety, or other person to reimburse the Department of 
        Defense or a military department for any expenditure for 
        environmental response activities.
    ``(e) Payments of Fines and Penalties.--None of the funds 
appropriated to the 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 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.

    (a) In General.--Section 120(h)(3) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9620(h)(3)) is amended--
            (1) by redesignating subparagraph (A) as clause (i) and 
        clauses (i), (ii), and (iii) of that subparagraph as subclauses 
        (I), (II), and (III), respectively;
            (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) Covenant requirements.--For purposes of 
                subparagraphs (A)(ii)(I) and (C)(iii)'';
            (6) in subparagraph (B), as designated by paragraph (5), by 
        striking ``subparagraph (B)'' each place it appears and 
        inserting ``subparagraph (A)(ii)''; and
            (7) by adding at the end the following:
                    ``(C) Deferral.--
                            ``(i) In general.--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)(I) 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 for the use intended by the 
                                transferee;
                                    ``(II) the deed or other agreement 
                                proposed to govern the transfer between 
                                the United States and the transferee of 
                                the property contains the assurances 
                                set forth in clause (ii); and
                                    ``(III) the Federal agency 
                                requesting deferral has provided 
                                notice, by publication in a newspaper 
                                of general circulation in the vicinity 
                                of the property, of the proposed 
                                transfer and of the opportunity for the 
                                public to submit, within a period of 
                                not less than 30 days after the date of 
                                the notice, written comments on the 
                                finding by the agency that the property 
                                is suitable for transfer.
                            ``(ii) Remedial action assurances.--With 
                        regard to a release or threatened release of a 
                        hazardous substance for which a Federal agency 
                        is potentially responsible under this section, 
                        the deed or other agreement proposed to govern 
                        the transfer shall contain assurances that--
                                    ``(I) provide for any necessary 
                                restrictions to ensure the protection 
                                of human health and the environment;
                                    ``(II) provide that there will be 
                                restrictions on use necessary to ensure 
                                required remedial investigations, 
                                remedial actions, and oversight 
                                activities will not be disrupted;
                                    ``(III) provide that all 
                                appropriate remedial action will be 
                                taken and identify the schedules for 
                                investigation and completion of all 
                                necessary remedial action; and
                                    ``(IV) provide that the Federal 
                                agency responsible for the property 
                                subject to transfer will submit a 
                                budget request to the Director of the 
                                Office of Management and Budget that 
                                adequately addresses schedules, subject 
                                to congressional authorizations and 
                                appropriations.
                            ``(iii) Warranty.--When all remedial action 
                        necessary to protect human health and the 
                        environment with respect to any substance 
                        remaining on the property on the date of 
                        transfer has been taken, the United States 
                        shall execute and deliver to the transferee an 
                        appropriate document containing a warranty that 
                        all such remedial action has been completed, 
                        and the making of the warranty shall be 
                        considered to satisfy the requirement of 
                        subparagraph (A)(ii)(I).
                            ``(iv) Federal responsibility.--A deferral 
                        under this subparagraph shall not increase, 
                        diminish, or affect in any manner any rights or 
                        obligations of a Federal agency with respect to 
                        a property transferred under this 
                        subparagraph.''.
    (b) Continued Application of State Law.--The first sentence of 
section 120(a)(4) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(a)(4)) is 
amended by inserting ``or facilities that are the subject of a deferral 
under subsection (h)(3)(C)'' after ``United States''.

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)).
    (c) Report on Compliance with Annex V to the Convention.--The 
Secretary of Defense shall include in each report on environmental 
compliance activities submitted to Congress under section 2706(b) of 
title 10, United States Code, the following information:
            (1) A list of the ships types, if any, for which the 
        Secretary of the Navy has made the determination referred to in 
        paragraph (2)(C) of section 3(c) of the Act to Prevent 
        Pollution from Ships, as amended by subsection (a)(2) of this 
        section.
            (2) A list of ship types which the Secretary of the Navy 
        has determined can comply with Regulation 5 of Annex V to the 
        Convention.
            (3) A summary of the progress made by the Navy in 
        implementing the requirements of paragraphs (2) and (3) such 
        section 3(c), as so amended.
            (4) A description of any emerging technologies offering the 
        potential to achieve full compliance with Regulation 5 of Annex 
        V to the Convention.
    (d) Publication Regarding Special Area Discharges.--Section 3(e)(4) 
of the Act to Prevent Pollution from Ships (33 U.S.C. 1902(e)(4)) is 
amended by striking out subparagraph (A) and inserting in lieu thereof 
the following:
                    ``(A) The amount and nature of the discharges in 
                special areas, not otherwise authorized under this 
                title, during the preceding year from ships referred to 
                in subsection (b)(1)(A) of this section owned or 
                operated by the Department of the Navy.''.

SEC. 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.''.

SEC. 352. AUTHORITY FOR AGREEMENTS WITH INDIAN TRIBES FOR SERVICES 
              UNDER ENVIRONMENTAL RESTORATION PROGRAM.

    Section 2701(d) of title 10, United States Code, is amended--
            (1) in the first sentence of paragraph (1), by striking out 
        ``, or with any State or local government agency,'' and 
        inserting in lieu thereof ``, with any State or local 
        government agency, or with any Indian tribe,''; and
            (2) by adding at the end the following:
            ``(3) Definition.--In this subsection, the term `Indian 
        tribe' has the meaning given such term in section 101(36) of 
        the Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601(36)).''.

                       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) Security and Safety Assistance.--At the request of a Federal, 
State, or local government agency responsible for providing law 
enforcement services, security services, or safety services, the 
Secretary of Defense may authorize the commander of a military 
installation or other facility of the Department of Defense or the 
commander of a specified or unified combatant command to provide 
assistance for the World Cup Soccer Games, the Goodwill Games, the 
Olympics, and any other civilian sporting event in support of essential 
security and safety at such event, but only if the Attorney General 
certifies that such assistance is necessary to meet essential security 
and safety needs.
    (b) Other Assistance.--The Secretary may authorize a commander 
referred to in subsection (a) to provide assistance for a sporting 
event referred to in that subsection in support of other needs relating 
to such event, but only--
            (1) to the extent that such needs cannot reasonably be met 
        by a source other than the Department;
            (2) to the extent that the provision of such assistance 
        does not adversely affect the military preparedness of the 
        Armed Forces; and
            (3) if the organization requesting such assistance agrees 
        to reimburse the Department for amounts expended by the 
        Department in providing the assistance in accordance with the 
        provisions of section 377 of title 10, United States Code, and 
        other applicable provisions of law.
    (c) Inapplicability to Certain Events.--Subsections (a) and (b) do 
not apply to the following sporting events:
            (1) Sporting events for which funds have been appropriated 
        before the date of the enactment of this Act.
            (2) The Special Olympics.
            (3) The Paralympics.
    (d) Terms and Conditions.--The Secretary may require such terms and 
conditions in connection with the provision of assistance under this 
section as the Secretary considers necessary and appropriate to protect 
the interests of the United States.
    (e) Report on Assistance.--Not later than January 30 of each year 
following a year in which the Secretary provides assistance under this 
section, the Secretary shall submit to the congressional defense 
committees a report on the assistance provided. The report shall set 
forth--
            (1) a description of the assistance provided;
            (2) the amount expended by the Department in providing the 
        assistance;
            (3) if the assistance was provided under subsection (a), 
        the certification of the Attorney General with respect to the 
        assistance under that subsection; and
            (4) if the assistance was provided under subsection (b)--
                    (A) an explanation why the assistance could not 
                reasonably be met by a source other than the 
                Department; and
                    (B) the amount the Department was reimbursed under 
                that subsection.
    (f) Relationship to Other Laws.--Assistance provided under this 
section shall be subject to the provisions of sections 375 and 376 of 
title 10, United States Code.

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 be 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.

SEC. 368. COMPUTER EMERGENCY RESPONSE TEAM AT SOFTWARE ENGINEERING 
              INSTITUTE.

    (a) Funding.--Of the amounts authorized to be appropriated under 
this Act, $2,000,000 shall be available to the Software Engineering 
Institute only for use by the Computer Emergency Response Team.
    (b) Challenge Athena Program.--Funds authorized by section 301(2) 
for the Challenge Athena program shall be reduced by $2,000,000.

SEC. 369. REIMBURSEMENT UNDER AGREEMENT FOR INSTRUCTION OF CIVILIAN 
              STUDENTS AT FOREIGN LANGUAGE INSTITUTE OF THE DEFENSE 
              LANGUAGE INSTITUTE.

    Section 559(a)(1) of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2776; 10 U.S.C. 4411 
note) is amended by striking out ``on a cost-reimbursable, space-
available basis'' and inserting in lieu thereof ``on a space-available 
basis and for such reimbursement (whether in whole or in part) as the 
Secretary considers appropriate''.

SEC. 370. AUTHORITY OF AIR NATIONAL GUARD TO PROVIDE CERTAIN SERVICES 
              AT LINCOLN MUNICIPAL AIRPORT, LINCOLN, NEBRASKA.

    (a) Authority.--Subject to subsections (b) and (c), the Nebraska 
Air National Guard may provide fire protection services and rescue 
services relating to aircraft at Lincoln Municipal Airport, Lincoln, 
Nebraska, on behalf of the Lincoln Municipal Airport Authority, 
Lincoln, Nebraska.
    (b) Agreement.--The Nebraska Air National Guard may not provide 
services under subsection (a) until the Nebraska Air National Guard and 
the authority enter into an agreement under which the authority 
reimburses the Nebraska Air National Guard for the cost of the services 
provided.
    (c) Conditions.--These services may only be provided to the extent 
that the provision of such services does not adversely affect the 
military preparedness of the Armed Forces.

              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, 108,904.
            (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, 10,403.
            (6) The Air Force Reserve, 655.

SEC. 413. PERSONNEL MANAGEMENT RELATING TO ASSIGNMENT TO SERVICE IN THE 
              SELECTIVE SERVICE SYSTEM.

    Section 10 of the Military Selective Service Act (50 U.S.C. App. 
460) is amended--
            (1) in subsection (b)(2), by inserting ``, subject to 
        subsection (e),'' after ``to employ such number of civilians, 
        and''; and
            (2) by inserting after subsection (d) the following:
    ``(e)(1) The number of armed forces personnel assigned to the 
Selective Service System under subsection (b)(2) may not exceed 745, 
except in a time of war declared by Congress or national emergency 
declared by Congress or the President.
    ``(2) Members of the Selected Reserve assigned to the Selective 
Service System under subsection (b)(2) shall not be counted for 
purposes of any limitation on the authorized strength of Selected 
Reserve personnel of the reserve components under any law authorizing 
the end strength of such personnel.''.

              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 
$69,880,430,000. 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''.

SEC. 506. GRADE OF CHIEF OF NAVAL RESEARCH.

    Section 5022(a) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following:
    ``(2) Unless appointed to higher grade under another provision of 
law, an officer, while serving in the Office of Naval Research as Chief 
of Naval Research, has the rank of rear admiral (upper half).''.

SEC. 507. SERVICE CREDIT FOR SENIOR ROTC CADETS AND MIDSHIPMEN IN 
              SIMULTANEOUS MEMBERSHIP PROGRAM.

    (a) Amendments to Title 10.--(1) Section 2106(c) of title 10, 
United States Code, is amended by striking out ``while serving on 
active duty other than for training after July 31, 1990, while a member 
of the Selected Reserve'' and inserting in lieu thereof ``performed on 
or after August 1, 1979, as a member of the Selected Reserve''.
    (2) Section 2107(g) of such title is amended by striking out 
``while serving on active duty other than for training after July 31, 
1990, while a member of the Selected Reserve'' and inserting in lieu 
thereof ``performed on or after August 1, 1979, as a member of the 
Selected Reserve''.
    (3) Section 2107a(g) of such title is amended by inserting ``, 
other than enlisted service performed after August 1, 1979, as a member 
of Selected Reserve'' after ``service as a cadet or with concurrent 
enlisted service''.
    (b) Amendment to Title 37.--Section 205(d) of title 37, United 
States Code, is amended by striking out ``that service after July 31, 
1990, that the officer performed while serving on active duty'' and 
inserting in lieu thereof ``for service that the officer performed on 
or after August 1, 1979.''.
    (c) Benefits Not To Accrue for Prior Periods.--No increase in pay 
or retired or retainer pay shall accrue for periods before the date of 
the enactment of this Act by reason of the amendments made by this 
section.

           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.

SEC. 518. MODIFIED END STRENGTH AUTHORIZATION FOR MILITARY TECHNICIANS 
              FOR THE AIR NATIONAL GUARD FOR FISCAL YEAR 1997.

    Section 513(b)(3) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 305; 10 U.S.C. 115 
note) is amended to read as follows:
            ``(3) Air National Guard:
                    ``(A) For fiscal year 1996, 22,906.
                    ``(B) For fiscal year 1997, 22,956.''.

                 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.

SEC. 523. PROHIBITION ON REORGANIZATION OF ARMY ROTC CADET COMMAND OR 
              TERMINATION OF SENIOR ROTC UNITS PENDING REPORT ON ROTC.

    (a) Prohibition.--Notwithstanding any other provision of law, the 
Secretary of the Army may not reorganize or restructure the Reserve 
Officers Training Corps Cadet Command or terminate any Senior Reserve 
Officer Training Corps units identified in the Information for Members 
of Congress concerning Senior Reserve Officer Training Corps (ROTC) 
Unit Closures dated May 20, 1996, until 180 days after the date on 
which the Secretary submits to the congressional defense committees the 
report described in subsection (b).
    (b) Report.--The report referred to in subsection (a) shall--
            (1) describe the selection process used to identify the 
        Reserve Officer Training Corps units of the Army to be 
        terminated;
            (2) list the criteria used by the Army to select Reserve 
        Officer Training Corps units for termination;
            (3) set forth the specific ranking of each unit of the 
        Reserve Officer Training Corps of the Army to be terminated as 
        against all other such units;
            (4) set forth the authorized and actual cadre staffing of 
        each such unit to be termination for each fiscal year of the 
        10-fiscal year period ending with fiscal year 1996;
            (5) set forth the production goals and performance 
        evaluations of each Reserve Officer Training Corps unit of the 
        Army on the closure list for each fiscal year of the 10-fiscal 
        year period ending with fiscal year 1996;
            (6) describe how cadets currently enrolled in the units 
        referred to in paragraph (5) will be accommodated after the 
        closure of such units;
            (7) describe the incentives to enhance the Reserve Officer 
        Training Corps program that are provided by each of the 
        colleges on the closure list;
            (8) include the projected officer accession plan by source 
        of commission for the active-duty Army, the Army Reserve, and 
        the Army National Guard; and
            (9) describe whether the closure of any ROTC unit will 
        adversely effect the recruitment of minority officer 
        candidates.

                       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)(A) 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) In the administration of subparagraph (A), the following 
officers shall not be counted:
            ``(i) A chaplain who is assigned to duty as a chaplain for 
        the period of active duty to which ordered.
            ``(ii) 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.
            ``(iii) Any officer assigned to duty with the American 
        Battle Monuments Commission for the period of active duty to 
        which ordered.''.
    (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) 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.''.
    (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.

SEC. 540. CHIEF AND ASSISTANT CHIEF OF ARMY NURSE CORPS.

    (a) Chief of Army Nurse Corps.--Subsection (b) of section 3069 of 
title 10, United States Code, is amended--
            (1) in the first sentence, by striking out ``major'' and 
        inserting in lieu thereof ``lieutenant colonel'';
            (2) by inserting after the first sentence the following: 
        ``An appointee who holds a lower regular grade shall be 
        appointed in the regular grade of brigadier general.''; and
            (3) in the last sentence, by inserting ``to the same 
        position'' before the period at the end.
    (b) Assistant Chief.--Subsection (c) of such section is amended by 
striking out ``major'' in the first sentence and inserting in lieu 
thereof ``lieutenant colonel''.
    (c) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 3069. Army Nurse Corps: composition; Chief and assistant chief; 
              appointment; grade
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 307 of title 10, United States Code, is 
amended to read as follows:

``3069. Army Nurse Corps: composition; Chief and assistant chief; 
                            appointment; grade.''.

SEC. 541. CHIEF AND ASSISTANT CHIEF OF AIR FORCE NURSE CORPS.

    (a) Positions and Appointment.--Chapter 807 of title 10, United 
States Code, is amended by inserting after section 8067 the following:
``Sec. 3069. Air Force nurses: Chief and assistant chief; appointment; 
              grade
    ``(a) Positions of Chief and Assistant Chief.--There are a Chief 
and assistant chief of the Air Force Nurse Corps.
    ``(b) Chief.--The Secretary of the Air Force shall appoint the 
Chief from the officers of the Regular Air Force designated as Air 
Force nurses whose regular grade is above lieutenant colonel and who 
are recommended by the Surgeon General. An appointee who holds a lower 
regular grade shall be appointed in the regular grade of brigadier 
general. The Chief serves during the pleasure of the Secretary, but not 
for more than three years, and may not be reappointed to the same 
position.
    ``(c) Assistant Chief.--The Surgeon General shall appoint the 
assistant chief from the officers of the Regular Air Force designated 
as Air Force nurses whose regular grade is above lieutenant colonel.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after section 8067 the following:

``3069. Air Force Nurse Corps: Chief and assistant chief; appointment; 
                            grade.''.

SEC. 542. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS 
              TO SPECIFIED PERSONS.

    (a) Waiver of Time Limitation.--Any limitation established by law 
or policy for the time within which a recommendation for the award of a 
military decoration or award must be submitted shall not apply in the 
case of awards of decorations as described in subsection (b), the award 
of each such decoration having been determined by the Secretary of the 
Navy to be warranted in accordance with section 1130 of title 10, 
United States Code.
    (b) Distinguished Flying Cross.--Subsection (a) applies to awards 
of the Distinguished Flying Cross for service during World War II as 
follows:
            (1) First award.--First award, for completion of at least 
        20 qualifying combat missions, to the following members and 
        former members of the Armed Forces:
                    Vernard V. Aiken of Wilmington, Vermont.
                    Ira V. Babcock of Dothan, Georgia.
                    George S. Barlow of Grafton, Virginia.
                    Earl A. Bratton of Bodega Bay, California.
                    Herman C. Edwards of Johns Island, South Carolina.
                    James M. Fitzgerald of Anchorage, Alaska.
                    Paul L. Hitchcock of Raleigh, North Carolina.
                    Harold H. Hottle of Hillsboro, Ohio.
                    Samuel M. Keith of Anderson, South Carolina.
                    Otis Lancaster of Wyoming, Michigan.
                    John B. McCabe of Biglerville, Pennsylvania.
                    James P. Merriman of Midland, Texas.
                    The late Michael L. Michalak, formerly of Akron, 
                New York.
                    The late Edward J. Naparkowsky, formerly of 
                Hartford, Connecticut.
                    A. Jerome Pfeiffer of Racine, Wisconsin.
                    Duane L. Rhodes of Earp, California.
                    Frank V. Roach of Bloomfield, New Jersey.
                    Arnold V. Rosekrans of Horseheads, New York.
                    Joseph E. Seaman, Jr. of Bordentown, New Jersey.
                    Luther E. Thomas of Panama City, Florida.
                    Merton S. Ward of South Hamilton, Massachusetts.
                    Simon L. Webb of Magnolia, Mississippi.
                    Jerry W. Webster of Leander, Texas.
                    Stanley J. Orlowski of Jackson, Michigan.
            (2) Second award.--Second award, for completion of at least 
        40 qualifying combat missions, to the following members and 
        former members of the Armed Forces:
                    Ralph J. Deceuster of Dover, Ohio.
                    Elbert J. Kimble of San Francisco, California.
                    George W. Knauff of Monument, Colorado.
                    John W. Lincoln of Rockland, Massachusetts.
                    Alan D. Marker of Sonoma, California.
                    Joseph J. Oliver of White Haven, Pennsylvania.
                    Arthur C. Adair of Grants Pass, Oregon.
                    Daniel K. Connors of Hampton, New Hampshire.
                    Glen E. Danielson of Whittier, California.
                    Prescott C. Jernegan of Hemet, California.
                    Stephen K. Johnson of Englewood, Florida.
                    Warren E. Johnson of Vista, California.
                    Albert P. Emsley of Bothell, Washington.
                    Robert B. Carnes of West Yarmouth, Massachusetts.
                    Urbain J. Fournier of Houma, Louisiana.
                    John B. Tagliapiri of St. Helena, California.
                    Ray B. Stiltner of Centralia, Washington.
            (3) Third award.--Third award, for completion of at least 
        60 qualifying combat missions, to the following members and 
        former members of the Armed Forces:
                    Glenn Bowers of Dillsburg, Pennsylvania.
                    Arthur C. Casey of Irving, California.
                    Robert J. Larsen of Gulf Breeze, Florida.
                    William A. Nickerson of Portland, Oregon.
                    David Mendoza of McAllen, Texas.
            (4) Fourth award.--Fourth award, for completion of at least 
        80 qualifying combat missions, to the following members and 
        former members of the Armed Forces:
                    Arvid L. Kretz of Santa Rosa, California.
                    George E. McClane of Cocoa Beach, Florida.
                    Robert Bair of Ontario, California.
            (5) Fifth award.--Fifth award, for completion of at least 
        100 qualifying combat missions, to the following members and 
        former members of the Armed Forces:
                    William A. Baldwin of San Clemente, California.
                    George Bobb of Blackwood, New Jersey.
                    John R. Conrad of Hot Springs, Arkansas.
                    Herbert R. Hetrick of Roaring Springs, 
                Pennsylvania.
                    William L. Wells of Cordele, Georgia.
            (6) Sixth award.--Sixth award, for completion of at least 
        120 qualifying combat missions, to Richard L. Murray of Dallas, 
        Texas.

SEC. 543. MILITARY PERSONNEL STALKING PUNISHMENT AND PREVENTION ACT OF 
              1996.

    (a) Short Title.--This section may be cited as the ``Military 
Personnel Stalking Punishment and Prevention Act of 1996''.
    (b) In General.--Title 18, United States Code, is amended by 
inserting after section 2261 the following:
``Sec. 2261A. Stalking of members of the Armed Forces of the United 
              States
    ``(a) In General.--Whoever, within the special maritime and 
territorial jurisdiction of the United States or in the course of 
interstate travel, with the intent to injure or harass any military 
person, places that military person in reasonable fear of the death of, 
or serious bodily injury to, that military person or a member of the 
immediate family of that military person shall be punished as provided 
in section 2261.
    ``(b) Definitions.--For purposes of this section--
            ``(1) the term `immediate family' has the same meaning as 
        in section 115; and
            ``(2) the term `military person' means--
                    ``(A) any member of the Armed Forces of the United 
                States (including a member of any reserve component); 
                and
                    ``(B) any member of the immediate family of a 
                person described in subparagraph (A).''.
    (c) Conforming Amendments.--
            (1) Section 2261(b) of title 18, United States Code, is 
        amended by inserting ``or section 2261A'' after ``this 
        section''.
            (2) Sections 2261(b) and 2262(b) of title 18, United States 
        Code, are each amended by striking ``offender's spouse or 
        intimate partner'' each place it appears and inserting 
        ``victim''.
            (3) The chapter heading for chapter 110A of title 18, 
        United States Code, is amended by inserting ``AND STALKING'' 
        after ``VIOLENCE''.
    (d) Clerical Amendment.--The table of sections at the beginning of 
chapter 110A of title 18, United States Code, is amended by inserting 
after the item relating to section 2261 the following new item:

``2261A. Stalking of members of the Armed Forces of the United 
                            States.''.
    (e) Effective Date.--This section and the amendments made by this 
section shall take effect on the day after the date of enactment of 
this Act.

      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).
    (f) Expiration of Authority.--The authority to pay annuities under 
this section shall expire on September 30, 2001.

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''.

SEC. 636. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY WAIVER OF 
              RETIRED PAY TO ENHANCE CIVIL SERVICE RETIREMENT ANNUITY.

    (a) Civil Service Retirement and Disability System.--
            (1) In general.--Subsection (c) of section 8332 of title 5, 
        United States Code, is amended by adding at the end the 
        following:
    ``(4) If an employee or Member waives retired pay that is subject 
to a court order for which there has been effective service on the 
Secretary concerned for purposes of section 1408 of title 10, the 
military service on which the retired pay is based may be credited as 
service for purposes of this subchapter only if, in accordance with 
regulations prescribed by the Director of the Office of Personnel 
Management, the employee or Member authorizes the Director to deduct 
and withhold from the annuity payable to the employee or Member under 
this subchapter, and to pay to the former spouse covered by the court 
order, the same amount that would have been deducted and withheld from 
the employee's or Member's retired pay and paid to that former spouse 
under such section 1408.''.
            (2) Conforming amendment.--Paragraph (1) of such subsection 
        is amended by striking ``Except as provided in paragraph (2)'' 
        and inserting ``Except as provided in paragraphs (2) and (4)''.
    (b) Federal Employees' Retirement System.--
            (1) In general.--Subsection (c) of section 8411 of title 5, 
        United States Code, is amended by adding at the end the 
        following:
    ``(5) If an employee or Member waives retired pay that is subject 
to a court order for which there has been effective service on the 
Secretary concerned for purposes of section 1408 of title 10, the 
military service on which the retired pay is based may be credited as 
service for purposes of this chapter only if, in accordance with 
regulations prescribed by the Director of the Office of Personnel 
Management, the employee or Member authorizes the Director to deduct 
and withhold from the annuity payable to the employee or Member under 
this subchapter, and to pay to the former spouse covered by the court 
order, the same amount that would have been deducted and withheld from 
the employee's or Member's retired pay and paid to that former spouse 
under such section 1408.''.
            (2) Conforming amendment.--Paragraph (1) of such subsection 
        is amended by striking ``Except as provided in paragraph (2) or 
        (3)'' and inserting ``Except as provided in paragraphs (2), 
        (3), and (5)''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on January 1, 1997.

                       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.

SEC. 643. PAYMENT TO VIETNAMESE COMMANDOS CAPTURED AND INTERNED BY 
              NORTH VIETNAM.

    (a) Payment Authorized.--(1) The Secretary of Defense shall make a 
payment to any person who demonstrates that he or she was captured and 
incarcerated by the Democratic Republic of Vietnam after having entered 
into the territory of the Democratic Republic of Vietnam pursuant to 
operations conducted under OPLAN 34A or its predecessor.
    (2) No payment may be made under this section to any individual who 
the Secretary of Defense determines, based on the available evidence, 
served in the Peoples Army of Vietnam or who provided active assistance 
to the Government of the Democratic Republic of Vietnam during the 
period 1958 through 1975.
    (3) In the case of a decedent who would have been eligible for a 
payment under this section if the decedent had lived, the payment shall 
be made to survivors of the decedent in the order in which the 
survivors are listed, as follows:
            (A) To the surviving spouse.
            (B) If there is no surviving spouse, to the surviving 
        children (including natural children and adopted children) of 
        the decedent, in equal shares.
    (b) Amount Payable.--The amount payable to or with respect to a 
person under this section is $40,000.
    (c) Time Limitations.--(1) In order to be eligible for payment 
under this section, the claimant must file his or her claim with the 
Secretary of Defense within 18 months of the effective date of the 
regulations implementing this section.
    (2) Not later than 18 months after the Secretary receives a claim 
for payment under this section--
            (A) the claimant's eligibility for payment of the claim 
        under subsection (a) shall be determined; and
            (B) if the claimant is determined eligible, the claim shall 
        be paid.
    (d) Determination and Payment of Claims.--(1) Submission and 
determination of claims.--The Secretary of Defense shall establish by 
regulation procedures whereby individuals may submit claims for payment 
under this section. Such regulations shall be issued within 6 months of 
the date of enactment of this Act.
    (2) Payment of claims.--The Secretary of Defense, in consultation 
with the other affected agencies, may establish guidelines for 
determining what constitutes adequate documentation that an individual 
was captured and incarcerated by the Democratic Republic of Vietnam 
after having entered the territory of the Democratic Republic of 
Vietnam pursuant to operations conducted under OPLAN 34A or its 
predecessor.
    (e) Authorization of Appropriations.--Of the total amount 
authorized to be appropriated under section 301, $20,000,000 is 
available for payments under this section. Notwithstanding section 301, 
that amount is authorized to be appropriated so as to remain available 
until expended.
    (f) Payment in Full Satisfaction of Claims Against the United 
States.--The acceptance of payment by an individual under this section 
shall be in full satisfaction of all claims by or on behalf of that 
individual against the United States arising from operations under 
OPLAN 34A or its predecessor.
    (g) Attorney Fees.--Notwithstanding any contract, the 
representative of an individual may not receive, for services rendered 
in connection with the claim of an individual under this section, more 
than ten percent of a payment made under this section on such claim.
    (h) No Right to Judicial Review.--All determinations by the 
Secretary of Defense pursuant to this section are final and conclusive, 
notwithstanding any other provision of law. Claimants under this 
program have no right to judicial review, and such review is 
specifically precluded.
    (i) Reports.--(1) No later than 24 months after the enactment of 
this Act, the Secretary of Defense shall submit a report to the 
Congress on the payment of claims pursuant to this section.
    (2) No later than 42 months after the enactment of this Act, the 
Secretary of Defense shall submit a final report to the Congress on the 
payment of claims pursuant to this section.

                   TITLE VII--HEALTH CARE PROVISIONS

                          Subtitle A--General

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. 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. 705. 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. 706. 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.

SEC. 707. RESTORATION OF PREVIOUS POLICY REGARDING RESTRICTIONS ON USE 
              OF DEPARTMENT OF DEFENSE MEDICAL FACILITIES.

    Section 1093 of title 10, United States Code, is amended--
            (1) by striking out subsection (b); and
            (2) in subsection (a), by striking out ``(a) Restriction on 
        Use of Funds.--''.

SEC. 708. PLANS FOR MEDICARE SUBVENTION DEMONSTRATION PROGRAMS.

    (a) Program for Enrollment in TRICARE Managed Care Option.--(1) Not 
later than September 6, 1996, the Secretary of Defense and the 
Secretary of Health and Human Services shall jointly submit to Congress 
and the President a report that sets forth a specific plan and the 
Secretaries' recommendations regarding the establishment of a 
demonstration program under which--
            (A) military retirees who are eligible for medicare are 
        permitted to enroll in the managed care option of the Tricare 
        program; and
            (B) the Secretary of Health and Human Services reimburses 
        the Secretary of Defense from the medicare program on a 
        capitated basis for the costs of providing health care services 
        to military retirees who enroll.
    (2) The report shall include the following:
            (A) The number of military retirees projected to 
        participate in the demonstration program and the minimum number 
        of such participants necessary to conduct the demonstration 
        program effectively.
            (B) A plan for notifying military retirees of their 
        eligibility for enrollment in the demonstration program and for 
        any other matters connected with enrollment.
            (C) A recommendation for the duration of the demonstration 
        program.
            (D) A recommendation for the geographic regions in which 
        the demonstration program should be conducted.
            (E) The appropriate level of capitated reimbursement, and a 
        schedule for such reimbursement, from the medicare program to 
        the Department of Defense for health care services provided 
        enrollees in the demonstration program.
            (F) An estimate of the amounts to be allocated by the 
        Department for the provision of health care services to 
        military retirees eligible for medicare in the regions in which 
        the demonstration program is proposed to be conducted in the 
        absence of the program and an assessment of revisions to such 
        allocation that would result from the conduct of the program.
            (G) An estimate of the cost to the Department and to the 
        medicare program of providing health care services to medicare 
        eligible military retirees who enroll in the demonstration 
        program.
            (H) An assessment of the likelihood of cost shifting among 
        the Department and the medicare program under the demonstration 
        program.
            (I) A proposal for mechanisms for reconciling and 
        reimbursing any improper payments among the Department and the 
        medicare program under the demonstration program.
            (J) A methodology for evaluating the demonstration program, 
        including cost analyses.
            (K) As assessment of the extent to which the Tricare 
        program is prepared to meet requirements of the medicare 
        program for purposes of the demonstration program and the 
        provisions of law or regulation that would have to be waived in 
        order to facilitate the carrying out of the demonstration 
        program.
            (L) An assessment of the impact of the demonstration 
        program on military readiness.
            (M) Contingency plans for the provision of health care 
        services under the demonstration program in the event of the 
        mobilization of health care personnel.
            (N) A recommendation of the reports that the Department and 
        the Department of Health and Human Services should submit to 
        Congress describing the conduct of the demonstration program.
    (b) Feasability Study for Program for Enrollment in TRICARE Fee-
For-Service Option.--Not later than January 3, 1997, the Secretary of 
Defense and the Secretary of Health and Human Services shall jointly 
submit to Congress and the President a report on the feasibility and 
advisability of expanding the demonstration program referred to in 
subsection (a) so as to provide the Department with reimbursement from 
the medicare program on a fee-for-service basis for health care 
services provided medicare-eligible military retirees who enroll in the 
demonstration program. The report shall include a proposal for the 
expansion of the program if the expansion is determined to be 
advisable.
    (c) Authorization of Appropriations.--Of the amounts authorized to 
be appropriated in section 301, $75,000,000 shall be made available to 
carry out the demonstration program referred to in subsection (a) if 
Congress authorizes the program by the end of the Second Session of the 
One Hundred Fourth Congress.

SEC. 709. RESEARCH AND BENEFITS RELATING TO GULF WAR SERVICE.

    (a) Research.--(1) The Secretary of Defense shall, by contract, 
grant, or other transaction, provide for scientific research to be 
carried out by entities independent of the Federal Government on 
possible causal relationships between the complex of illnesses and 
symptoms commonly known as ``Gulf War syndrome'' and the possible 
exposures of members of the Armed Forces to chemical warfare agents or 
other hazardous materials during Gulf War service.
    (2) The Secretary shall prescribe the procedures for making awards 
under paragraph (1). The procedures shall--
            (A) include a comprehensive, independent peer-review 
        process for the evaluation of proposals for scientific research 
        that are submitted to the Department of Defense; and
            (B) provide for the final selection of proposals for award 
        to be based on the scientific merit and program relevance of 
        the proposed research.
    (3) Of the amount authorized to be appropriated under section 
301(19), $10,000,000 is available for research under paragraph (1).
    (b) Health Care Benefits for Afflicted Children of Gulf War 
Veterans.--(1) Under regulations prescribed by the Secretary of 
Defense, any child of a Gulf War veteran who has been born after August 
2, 1990, and has a congenital defect or catastrophic illness not 
excluded from coverage under paragraph (2) is eligible for medical and 
dental care under chapter 55 of title 10, United States Code, for the 
congenital defect or catastrophic illness, and associated conditions, 
of the child.
    (2) The administering Secretaries may exclude from coverage under 
this subsection--
            (A) any congenital defect or catastrophic illness that, as 
        determined by the Secretary of Defense to a reasonable degree 
        of scientific certainty on the basis of scientific research, is 
        not a defect or catastrophic illness that can result in a child 
        from an exposure of a parent of the child to a chemical warfare 
        agent or other hazardous material to which members of the Armed 
        Forces might have been exposed during Gulf War service; and
            (B) a particular congenital defect or catastrophic illness 
        (and any associated condition) of a particular child if the 
        onset of the defect or illness is determined to have preceded 
        any possible exposure of the parent or parents of the child to 
        a chemical warfare agent or other hazardous material during 
        Gulf War service.
    (3) No fee, deductible, or copayment requirement may be imposed or 
enforced for medical or dental care provided under chapter 55 of title 
10, United States Code, in the case of a child who is eligible for such 
care under this subsection (even if the child would otherwise be 
subject to such a requirement on the basis of any eligibility for such 
care that the child also has under any provision of law other than this 
subsection).
    (c) Definitions.--(1) In this section:
            (A) The term ``Gulf War veteran'' means a veteran of Gulf 
        War service.
            (B) The term ``Gulf War service'' means service on active 
        duty as a member of the Armed Forces in the Southwest Asia 
        theater of operations during the Persian Gulf War.
            (C) The term ``Persian Gulf War'' has the meaning given 
        that term in section 101(33) of title 38, United States Code.
            (D) The term ``administering Secretaries'' has the meaning 
        given that term in section 1072(3) of title 10, United States 
        Code.
            (E) The term ``child'' means a natural child.
    (2) The Secretary of Defense shall prescribe in regulations a 
definition of the terms ``congenital defect'' and ``catastrophic 
illness'' for the purposes of this section.

SEC. 710. PREVENTIVE HEALTH CARE SCREENING FOR COLON AND PROSTATE 
              CANCER.

    (a) Members and Former Members.--(1) Section 1074d of title 10, 
United States Code, is amended--
            (A) in subsection (a)--
                    (i) by inserting ``(1)'' before ``Female''; and
                    (ii) by adding at the end the following new 
                paragraph:
    ``(2) Male members and former members of the uniformed services 
entitled to medical care under section 1074 or 1074a of this title 
shall also be entitled to preventive health care screening for colon or 
prostate cancer at such intervals and using such screening methods as 
the administering Secretaries consider appropriate.''; and
            (B) in subsection (b), by adding at the end the following 
        new paragraph:
            ``(8) Colon cancer screening, at the intervals and using 
        the screening methods prescribed under subsection (a)(2).''.
    (2)(A) The heading of such section is amended to read as follows:
``Sec. 1074d. Primary and preventive health care services
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 55 of such title is amended to read as 
follows:

``1074d. Primary and preventive health care services.''.
    (b) Dependents.--(1) Section 1077(a) of such title is amended by 
adding at the end the following new paragraph:
            ``(14) Preventive health care screening for colon or 
        prostate cancer, at the intervals and using the screening 
        methods prescribed under section 1074d(a)(2) of this title.''.
    (2) Section 1079(a)(2) of such title is amended--
            (A) in the matter preceding subparagraph (A), by inserting 
        ``the schedule and method of colon and prostate cancer 
        screenings,'' after ``pap smears and mammograms,''; and
            (B) in subparagraph (B), by inserting ``or colon and 
        prostate cancer screenings'' after ``pap smears and 
        mammograms''.

          Subtitle B--Uniformed Services Treatment Facilities

SEC. 721. DEFINITIONS.

    In this subtitle:
            (1) The term ``administering Secretaries'' means the 
        Secretary of Defense, the Secretary of Transportation, and the 
        Secretary of Health and Human Services.
            (2) The term ``agreement'' means the agreement required 
        under section 722(b) between the Secretary of Defense and a 
        designated provider.
            (3) The term ``capitation payment'' means an actuarially 
        sound payment for a defined set of health care services that is 
        established on a per enrollee per month basis.
            (4) The term ``covered beneficiary'' means a beneficiary 
        under chapter 55 of title 10, United States Code, other than a 
        beneficiary under section 1074(a) of such title.
            (5) The term ``designated provider'' means a public or 
        nonprofit private entity that was a transferee of a Public 
        Health Service hospital or other station under section 987 of 
        the Omnibus Budget Reconciliation Act of 1981 (Public Law 97-
        35; 95 Stat. 603) and that, before the date of the enactment of 
        this Act, was deemed to be a facility of the uniformed services 
        for the purposes of chapter 55 of title 10, United States Code. 
        The term includes any legal successor in interest of the 
        transferee.
            (6) The term ``enrollee'' means a covered beneficiary who 
        enrolls with a designated provider.
            (7) The term ``health care services'' means the health care 
        services provided under the health plan known as the TRICARE 
        PRIME option under the TRICARE program.
            (8) The term ``Secretary'' means the Secretary of Defense.
            (9) The term ``TRICARE program'' means the managed health 
        care program that is established by the Secretary of Defense 
        under the authority of chapter 55 of title 10, United States 
        Code, principally section 1097 of such title, and includes the 
        competitive selection of contractors to financially underwrite 
        the delivery of health care services under the Civilian Health 
        and Medical Program of the Uniformed Services.

SEC. 722. INCLUSION OF DESIGNATED PROVIDERS IN UNIFORMED SERVICES 
              HEALTH CARE DELIVERY SYSTEM.

    (a) Inclusion in System.--The health care delivery system of the 
uniformed services shall include the designated providers.
    (b) Agreements to Provide Managed Health Care Services.--(1) After 
consultation with the other administering Secretaries, the Secretary of 
Defense shall negotiate and enter into an agreement with each 
designated provider, under which the designated provider will provide 
managed health care services to covered beneficiaries who enroll with 
the designated provider.
    (2) The agreement shall be entered into on a sole source basis. The 
Federal Acquisition Regulation, except for those requirements regarding 
competition, issued pursuant to section 25(c) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 421(c)) shall apply to the agreements 
as acquisitions of commercial items.
    (3) The implementation of an agreement is subject to availability 
of funds for such purpose.
    (c) Effective Date of Agreements.--(1) Unless an earlier effective 
date is agreed upon by the Secretary and the designated provider, the 
agreement shall take effect upon the later of the following:
            (A) The date on which a managed care support contract under 
        the TRICARE program is implemented in the service area of the 
        designated provider.
            (B) October 1, 1997.
    (2) Notwithstanding paragraph (1), the designated provider whose 
service area includes Seattle, Washington, shall implement its 
agreement as soon as the agreement permits.
    (d) Temporary Continuation of Existing Participation Agreements.--
The Secretary shall extend the participation agreement of a designated 
provider in effect immediately before the date of the enactment of this 
Act under section 718(c) of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1587) until the 
agreement required by this section takes effect under subsection (c).
    (e) Service Area.--The Secretary may not reduce the size of the 
service area of a designated provider below the size of the service 
area in effect as of September 30, 1996.
    (f) Compliance With Administrative Requirements.--(1) Unless 
otherwise agreed upon by the Secretary and a designated provider, the 
designated provider shall comply with necessary and appropriate 
administrative requirements established by the Secretary for other 
providers of health care services and requirements established by the 
Secretary of Health and Human Services for risk-sharing contractors 
under section 1876 of the Social Security Act (42 U.S.C. 1395mm). The 
Secretary and the designated provider shall determine and apply only 
such administrative requirements as are minimally necessary and 
appropriate. A designated provider shall not be required to comply with 
a law or regulation of a State government requiring licensure as a 
health insurer or health maintenance organization.
    (2) A designated provider may not contract out more than five 
percent of its primary care enrollment without the approval of the 
Secretary, except in the case of primary care contracts between a 
designated provider and a primary care contractor in force on the date 
of the enactment of this Act.

SEC. 723. PROVISION OF UNIFORM BENEFIT BY DESIGNATED PROVIDERS.

    (a) Uniform Benefit Required.--A designated provider shall offer to 
enrollees the health benefit option prescribed and implemented by the 
Secretary under section 731 of the National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 1073 note), 
including accompanying cost-sharing requirements.
    (b) Time for Implementation of Benefit.--A designated provider 
shall offer the health benefit option described in subsection (a) to 
enrollees upon the later of the following:
            (1) The date on which health care services within the 
        health care delivery system of the uniformed services are 
        rendered through the TRICARE program in the region in which the 
        designated provider operates.
            (2) October 1, 1996.
    (c) Adjustments.--The Secretary may establish a later date under 
subsection (b)(2) or prescribe reduced cost-sharing requirements for 
enrollees.

SEC. 724. ENROLLMENT OF COVERED BENEFICIARIES.

    (a) Fiscal Year 1997 Limitation.--(1) During fiscal year 1997, the 
number of covered beneficiaries who are enrolled in managed care plans 
offered by designated providers may not exceed the number of such 
enrollees as of October 1, 1995.
    (2) The Secretary may waive the limitation under paragraph (1) if 
the Secretary determines that additional enrollment authority for a 
designated provider is required to accommodate covered beneficiaries 
who are dependents of members of the uniformed services entitled to 
health care under section 1074(a) of title 10, United States Code.
    (b) Permanent Limitation.--For each fiscal year after fiscal year 
1997, the number of enrollees in managed care plans offered by 
designated providers may not exceed 110 percent of the number of such 
enrollees as of the first day of the immediately preceding fiscal year. 
The Secretary may waive this limitation as provided in subsection 
(a)(2).
    (c) Retention of Current Enrollees.--An enrollee in the managed 
care program of a designated provider as of September 30, 1997, or such 
earlier date as the designated provider and the Secretary may agree 
upon, shall continue receiving services from the designated provider 
pursuant to the agreement entered into under section 722 unless the 
enrollee disenrolls from the designated provider. Except as provided in 
subsection (e), the administering Secretaries may not disenroll such an 
enrollee unless the disenrollment is agreed to by the Secretary and the 
designated provider.
    (d) Additional Enrollment Authority.--Other covered beneficiaries 
may also receive health care services from a designated provider, 
except that the designated provider may market such services to, and 
enroll, only those covered beneficiaries who--
            (1) do not have other primary health insurance coverage 
        (other than medicare coverage) covering basic primary care and 
        inpatient and outpatient services; or
            (2) are enrolled in the direct care system under the 
        TRICARE program, regardless of whether the covered 
        beneficiaries were users of the health care delivery system of 
        the uniformed services in prior years.
    (e) Special Rule for Medicare-Eligible Beneficiaries.--If a covered 
beneficiary who desires to enroll in the managed care program of a 
designated provider is also entitled to hospital insurance benefits 
under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c 
et seq.), the covered beneficiary shall elect whether to receive health 
care services as an enrollee or under part A of title XVIII of the 
Social Security Act. The Secretary may disenroll an enrollee who 
subsequently violates the election made under this subsection and 
receives benefits under part A of title XVIII of the Social Security 
Act.
    (f) Information Regarding Eligible Covered Beneficiaries.--The 
Secretary shall provide, in a timely manner, a designated provider with 
an accurate list of covered beneficiaries within the marketing area of 
the designated provider to whom the designated provider may offer 
enrollment.

SEC. 725. APPLICATION OF CHAMPUS PAYMENT RULES.

    (a) Application of Payment Rules.--Subject to subsection (b), the 
Secretary shall require a private facility or health care provider that 
is a health care provider under the Civilian Health and Medical Program 
of the Uniformed Services to apply the payment rules described in 
section 1074(c) of title 10, United States Code, in imposing charges 
for health care that the private facility or provider provides to 
enrollees of a designated provider.
    (b) Authorized Adjustments.--The payment rules imposed under 
subsection (a) shall be subject to such modifications as the Secretary 
considers appropriate. The Secretary may authorize a lower rate than 
the maximum rate that would otherwise apply under subsection (a) if the 
lower rate is agreed to by the designated provider and the private 
facility or health care provider.
    (c) Regulations.--The Secretary shall prescribe regulations to 
implement this section after consultation with the other administering 
Secretaries.
    (d) Conforming Amendment.--Section 1074 of title 10, United States 
Code, is amended by striking out subsection (d).

SEC. 726. PAYMENTS FOR SERVICES.

    (a) Form of Payment.--Unless otherwise agreed to by the Secretary 
and a designated provider, the form of payment for services provided by 
a designated provider shall be full risk capitation. The capitation 
payments shall be negotiated and agreed upon by the Secretary and the 
designated provider. In addition to such other factors as the parties 
may agree to apply, the capitation payments shall be based on the 
utilization experience of enrollees and competitive market rates for 
equivalent health care services for a comparable population to such 
enrollees in the area in which the designated provider is located.
    (b) Limitation on Total Payments.--Total capitation payments to a 
designated provider shall not exceed an amount equal to the cost that 
would have been incurred by the Government if the enrollees had 
received their care through a military treatment facility, the TRICARE 
program, or the medicare program, as the case may be.
    (c) Establishment of Payment Rates on Annual Basis.--The Secretary 
and a designated provider shall establish capitation payments on an 
annual basis, subject to periodic review for actuarial soundness and to 
adjustment for any adverse or favorable selection reasonably 
anticipated to result from the design of the program.
    (d) Alternative Basis for Calculating Payments.--After September 
30, 1999, the Secretary and a designated provider may mutually agree 
upon a new basis for calculating capitation payments.

SEC. 727. REPEAL OF SUPERSEDED AUTHORITIES.

    (a) Repeals.--The following provisions of law are repealed:
            (1) Section 911 of the Military Construction Authorization 
        Act, 1982 (42 U.S.C. 248c).
            (2) Section 1252 of the Department of Defense Authorization 
        Act, 1984 (42 U.S.C. 248d).
            (3) Section 718(c) of the National Defense Authorization 
        Act for Fiscal year 1991 (Public Law 101-510; 42 U.S.C. 248c 
        note).
            (4) Section 726 of the National Defense Authorization Act 
        for Fiscal Year 1996 (Public Law 104-106; 42 U.S.C. 248c note).
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 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 
        eliminate the deficiencies.

SEC. 810. RESEARCH UNDER TRANSACTIONS OTHER THAN CONTRACTS AND GRANTS.

    (a) Conditions for Use of Authority.--Subsection (e) of section 
2371 of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B);
            (2) by inserting ``and'' after the semicolon at the end of 
        subparagraph (A), as so redesignated;
            (3) by striking out ``; and'' at the end of subparagraph 
        (B), as so redesignated, and inserting in lieu thereof a 
        period;
            (4) by inserting ``(1)'' after ``(e) Conditions.--''; and
            (5) by striking out paragraph (3) and inserting in lieu 
        thereof the following:
    ``(2) A cooperative agreement containing a clause under subsection 
(d) or a transaction authorized under subsection (a) may be used for a 
research project when the use of a standard contract, grant, or 
cooperative agreement for such project is not feasible or 
appropriate.''.
    (b) Revised Requirement for Annual Report.--Section 2371 of such 
title is amended by striking out subsection (h) and inserting in lieu 
thereof the following:
    ``(h) Annual Report.--(1) Not later than 90 days after the end of 
each fiscal year, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on Department of 
Defense use during such fiscal year of--
            ``(A) cooperative agreements authorized under section 2358 
        of this title that contain a clause under subsection (d); and
            ``(B) transactions authorized under subsection (a).
    ``(2) The report shall include, with respect to the cooperative 
agreements and other transactions covered by the report, the following:
            ``(A) The technology areas in which research projects were 
        conducted under such agreements or other transactions.
            ``(B) The extent of the cost-sharing among Federal 
        Government and non-Federal sources.
            ``(C) The extent to which the use of the cooperative 
        agreements and other transactions--
                    ``(i) has contributed to a broadening of the 
                technology and industrial base available for meeting 
                Department of Defense needs; and
                    ``(ii) has fostered within the technology and 
                industrial base new relationships and practices that 
                support the national security of the United States.
            ``(D) The total amount of payments, if any, that were 
        received by the Federal Government during the fiscal year 
        covered by the report pursuant to a clause described in 
        subsection (d) that was included in the cooperative agreements 
        and transactions, and the amount of such payments, if any, that 
        were credited to each account established under subsection 
        (f).''.
    (c) Protection of Certain Information From Disclosure.--Such 
section, as amended by subsection (b), is further amended by inserting 
after subsection (h) the following:
    ``(i) Protection of Certain Information From Disclosure.--(1) 
Disclosure of information described in paragraph (2) is not required, 
and may not be compelled, under section 552 of title 5 for five years 
after the date on which the information is received by the Department 
of Defense.
    ``(2) Paragraph (1) applies to the following information in the 
records of the Department of Defense if the information was submitted 
to the department in a competitive or noncompetitive process having the 
potential for resulting in an award, to the submitters, of a 
cooperative agreement that includes a clause described in subsection 
(d) or other transaction authorized under subsection (a):
            ``(A) Proposals, proposal abstracts, and supporting 
        documents.
            ``(B) Business plans submitted on a confidential basis.
            ``(C) Technical information submitted on a confidential 
        basis.''.
    (d) Division of Section Into Distinct Provisions by Subject 
Matter.--(1) Chapter 139 of title 10, United States Code, is amended--
            (A) by inserting before the last subsection of section 2371 
        (relating to cooperative research and development agreements 
        under the Stevenson-Wydler Technology Innovation Act of 1980) 
        the following:
``Sec. 2371a. Cooperative research and development agreements under 
              Stevenson-Wydler Technology Innovation Act of 1980'';
            (B) by striking out ``(i) Cooperative Research and 
        Development Agreements Under Stevenson-Wydler Technology 
        Innovation Act of 1980.--''; and
            (C) in the table of sections at the beginning of such 
        chapter, by inserting after the item relating to section 2371 
        the following:

``2371a. Cooperative research and development agreements under 
                            Stevenson-Wydler Technology Innovation Act 
                            of 1980.''.
    (2) Section 2358(d) of such title is amended by striking out 
``section 2371'' and inserting in lieu thereof ``sections 2371 and 
2371a''.

SEC. 811. REPORTING REQUIREMENT UNDER DEMONSTRATION PROJECT FOR 
              PURCHASE OF FIRE, SECURITY, POLICE, PUBLIC WORKS, AND 
              UTILITY SERVICES FROM LOCAL GOVERNMENT AGENCIES.

    Section 816(b) of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2820) is amended by striking 
out ``1996'' and inserting in lieu thereof ``1998''.

SEC. 812. TEST PROGRAMS FOR MODERNIZATION-THROUGH-SPARES.

    Not later than 60 days after the date of enactment of this Act, the 
Secretary of the Army shall report to the Committee on Armed Services 
of the Senate and the Committee on National Security of the House of 
Representatives on the steps he has taken to ensure that each program 
included in the Army's modernization-through-spares program is 
conducted in accordance with--
            (1) the competition requirements in section 2304 of title 
        10;
            (2) the core logistics requirements in section 2464 of 
        title 10;
            (3) the public-private competition requirements in section 
        2469 of title 10; and
            (4) requirements relating to contract bundling and spare 
        parts breakout in sections 15(a) and 15(l) of the Small 
        Business Act (15 U.S.C. 644) and implementing regulations in 
        the Defense FAR Supplement.

SEC. 813. PILOT PROGRAM FOR TRANSFER OF DEFENSE TECHNOLOGY INFORMATION 
              TO PRIVATE INDUSTRY.

    (a) Program Required.--The Secretary of Defense shall carry out a 
pilot program to demonstrate online transfers of information on defense 
technologies to businesses in the private sector through an interactive 
data network involving Small Business Development Centers of 
institutions of higher education.
    (b) Computerized Data Base of Defense Technologies.--(1) Under the 
pilot program, the Secretary shall enter into an agreement with the 
head of an eligible institution of higher education that provides for 
such institution--
            (A) to develop and maintain a computerized data base of 
        information on defense technologies;
            (B) to make such information available online to--
                    (i) businesses; and
                    (ii) other institutions of higher education 
                entering into partnerships with the Secretary under 
                subsection (c).
    (2) The online accessibility may be established by means of any of, 
or any combination of, the following:
                    (A) Digital teleconferencing.
                    (B) International Signal Digital Network lines.
                    (C) Direct modem hookup.
    (c) Partnership Network.--Under the pilot program, the Secretary 
shall seek to enter into agreements with the heads of several eligible 
institutions of higher education having strong business education 
programs to provide for the institutions of higher education entering 
into such agreements--
            (1) to establish interactive computer links with the data 
        base developed and maintained under subsection (b); and
            (2) to assist the Secretary in making information on 
        defense technologies available online to the broadest 
        practicable number, types, and sizes of businesses.
    (d) Eligible Institutions.--For the purposes of this section, an 
institution of higher education is eligible to enter into an agreement 
under subsection (b) or (c) if the institution has a Small Business 
Development Center.
    (e) Defense Technologies Covered.--(1) The Secretary shall 
designate the technologies to be covered by the pilot program from 
among the existing and experimental technologies that the Secretary 
determines--
            (A) are useful in meeting Department of Defense needs; and
            (B) should be made available under the pilot program to 
        facilitate the satisfaction of such needs by private sector 
        sources.
    (2) Technologies covered by the program should include technologies 
useful for defense purposes that can also be used for nondefense 
purposes (without or without modification).
    (f) Definitions.--In this section:
            (1) The term ``Small Business Development Center'' means a 
        small business development center established pursuant to 
        section 21 of the Small Business Act (15 U.S.C. 648).
            (2) The term ``defense technology'' means a technology 
        designated by the Secretary of Defense under subsection (d).
            (3) The term ``partnership'' means an agreement entered 
        into under subsection (c).
    (g) Termination of Pilot Program.--The pilot program shall 
terminate one year after the Secretary enters into an agreement under 
subsection (b).
    (h) Authorization of Appropriations.--Of the amount authorized to 
be appropriated under section 201(4) for university research 
initiatives, $3,000,000 is available for the pilot program.

      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. 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.''.

SEC. 906. ROLE OF DIRECTOR OF CENTRAL INTELLIGENCE IN APPOINTMENT AND 
              EVALUATION OF CERTAIN INTELLIGENCE OFFICIALS.

    (a) In General.--Section 201 of title 10, United States Code, is 
amended to read as follows:
``Sec. 201. Certain intelligence officials: consultation and 
              concurrence regarding appointments; evaluation of 
              performance
    ``(a) Consultation Regarding Appointment.--Before submitting a 
recommendation to the President regarding the appointment of an 
individual to the position of Director of the Defense Intelligence 
Agency, the Secretary of Defense shall consult with the Director of 
Central Intelligence regarding the recommendation.
    ``(b) Concurrence in Appointment.--Before submitting a 
recommendation to the President regarding the appointment of an 
individual to a position referred to in paragraph (2), the Secretary of 
Defense shall seek the concurrence of the Director of Central 
Intelligence in the recommendation. If the Director does not concur in 
the recommendation, the Secretary may make the recommendation to the 
President without the Director's concurrence, but shall include in the 
recommendation a statement that the Director does not concur in the 
recommendation.
    ``(2) Paragraph (1) applies to the following positions:
            ``(A) The Director of the National Security Agency.
            ``(B) The Director of the National Reconnaissance Office.
    ``(c) Performance Evaluations.--(1) The Director of Central 
Intelligence shall provide annually to the Secretary of Defense, for 
the Secretary's consideration, an evaluation of the performance of the 
individuals holding the positions referred to in paragraph (2) in 
fulfilling their respective responsibilities with regard to the 
National Foreign Intelligence Program.
    ``(2) The positions referred to in paragraph (1) are the following:
            ``(A) The Director of the National Security Agency.
            ``(B) The Director of the National Reconnaissance Office.
            ``(C) The Director of the National Imagery and Mapping 
        Agency.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter II of chapter 8 of such title is amended by striking out the 
item relating to section 201 and inserting in lieu thereof the 
following new item:

``201. Certain intelligence officials: consultation and concurrence 
                            regarding appointments; evaluation of 
                            performance.''.

SEC. 907. MATTERS TO BE CONSIDERED IN NEXT ASSESSMENT OF CURRENT 
              MISSIONS, RESPONSIBILITIES, AND FORCE STRUCTURE OF THE 
              UNIFIED COMBATANT COMMANDS.

    The Chairman of the Joint Chiefs of Staff shall consider, as part 
of the next periodic review of the missions, responsibilities, and 
force structure of the unified combatant commands under section 161(b) 
of title 10, United States Code, the following matters:
            (1) For each Area of Responsibility of the regional unified 
        combatant commands--
                    (A) the foremost threats to United States or allied 
                security in the near- and long-term;
                    (B) the total area of ocean and total area of land 
                encompassed; and
                    (C) the number of countries and total population 
                encompassed.
            (2) Whether any one Area of Responsibility encompasses a 
        disproportionately high or low share of threats, mission 
        requirements, land or ocean area, number of countries, or 
        population.
            (3) The other factors used to establish the current Areas 
        of Responsibility.
            (4) Whether any of the factors addressed under paragraph 
        (3) account for any apparent imbalances indicated in the 
        response to paragraph (2).
            (5) Whether, in light of recent reductions in the overall 
        force structure of the Armed Forces, the United States could 
        better execute its warfighting plans with fewer unified 
        combatant commands, including--
                    (A) a total of five or fewer commands, all of which 
                are regional;
                    (B) an eastward-oriented command, a westward-
                oriented command, and a central command; or
                    (C) a purely functional command structure, 
                involving (for example) a first theater command, a 
                second theater command, a logistics command, a special 
                contingencies command, and a strategic command.
            (6) Whether any missions, staff, facilities, equipment, 
        training programs, or other assets or activities of the unified 
        combatant commands are redundant.
            (7) Whether warfighting requirements are adequate to 
        justify the current functional commands.
            (8) Whether the exclusion of Russia from a specific Area of 
        Responsibility presents any difficulties for the unified 
        combatant commands with respect to contingency planning for 
        that area and its periphery.
            (9) Whether the current geographic boundary between the 
        Central Command and the European Command through the Middle 
        East could create command conflicts in the context of fighting 
        a major regional conflict in the Middle East.

SEC. 908. ACTIONS TO LIMIT ADVERSE EFFECTS OF ESTABLISHMENT OF NATIONAL 
              MISSILE DEFENSE JOINT PROGRAM OFFICE ON PRIVATE SECTOR 
              EMPLOYMENT.

    The Director of the Ballistic Missile Defense Organization shall 
take such actions as are necessary in connection with the establishment 
of the National Missile Defense Joint Program Office to ensure that the 
establishment of that office does not make it necessary for a Federal 
Government contractor to reduce the number of persons employed by the 
contractor for supporting the national missile defense development 
program at any particular location outside the National Capital Region 
(as defined in section 2674(f)(2) of title 10, United States Code).

            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. 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 and has significant 
national missions.
    ``(b) Director.--(1) The Director of the National Imagery and 
Mapping Agency is the head of the agency. The President shall appoint 
the Director.
    ``(2)(A) Upon a vacancy in the position of Director, the Secretary 
of Defense shall recommend to the President an individual for 
appointment to the position.
    ``(B) The Secretary shall seek the concurrence of the Director of 
Central Intelligence in recommending an individual for appointment 
under subparagraph (A). If the Director does not concur in the 
recommendation, the Secretary may make the recommendation to the 
President without the Director's concurrence, but shall include in the 
recommendation a statement that the Director does not concur in the 
recommendation.
    ``(3) If an officer of the armed forces is appointed to the 
position of Director under this subsection, the position 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.
    ``(c) Collection Tasking Authority.--The Director of Central 
Intelligence shall have authority to approve collection requirements, 
determine collection priorities, and resolve conflicts in collection 
priorities levied on national imagery collection assets, except as 
otherwise agreed by the Director and the Secretary of Defense pursuant 
to the direction of the President.
``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.--The National Imagery and Mapping Agency 
shall also have national missions as specified in section 120(a) of the 
National Security Act of 1947.
    ``(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. 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) Oversight of Agency as a Combat Support Agency.--Section 193 of 
title 10, United States Code, is amended--
            (1) in subsection (d)--
                    (A) by striking out the caption and inserting in 
                lieu thereof ``Review of National Security Agency and 
                National Imagery and Mapping Agency.--'';
                    (B) in paragraph (1)--
                            (i) by inserting ``and the National Imagery 
                        and Mapping Agency'' after ``the National 
                        Security Agency''; and
                            (ii) by striking out ``the Agency'' and 
                        inserting in lieu thereof ``that the 
                        agencies''; and
                    (C) in paragraph (2), by inserting ``and the 
                National Imagery and Mapping Agency'' after ``the 
                National Security Agency'';
            (2) in subsection (e)--
                    (A) by striking out ``DIA and NSA'' in the caption 
                and inserting in lieu thereof the following: ``DIA, 
                NSA, and NIMA.--''; and
                    (B) by striking out ``and the National Security 
                Agency'' and inserting in lieu thereof ``, the National 
                Security Agency, and the National Imagery and Mapping 
                Agency''; and
            (3) in subsection (f), by striking out paragraph (4) and 
        inserting in lieu thereof the following:
            ``(4) The National Imagery and Mapping Agency.''.
    (d) 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 o imagery intelligence 
                        and geospatial information;''.
    (b) National Mission.--Title I of such Act (50 U.S.C. 402 et seq.) 
is amended by adding at the end the following:

       ``national mission of national imagery and mapping agency

    ``Sec. 120. (a) In General.--In addition to the Department of 
Defense missions set forth in section 442 of title 10, United States 
Code, the National Imagery and Mapping Agency shall also support the 
imagery requirements of the Department of State and other departments 
and agencies of the United States outside the Department of Defense.
    ``(b) Requirements and Priorities.--The Director of Central 
Intelligence shall establish requirements and priorities governing the 
collection of national intelligence by the National Imagery and Mapping 
Agency under subsection (a).
    ``(c) Correction of Deficiencies.--The Director of Central 
Intelligence shall develop and implement such programs and policies as 
the Director and the Secretary 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 programs and policies. The 
Secretary shall obtain the advice of the Chairman of the Joint Chiefs 
of Staff regarding the matters on which the Director and the Secretary 
are to consult under the preceding sentence.''.
    (c) Tasking of Imagery Assets.--Title I of such Act is further 
amended by adding at the end the following:

                     ``collection tasking authority

    ``Sec. 121. The Director of Central Intelligence shall have 
authority to approve collection requirements, determine collection 
priorities, and resolve conflicts in collection priorities levied on 
national imagery collection assets, except as otherwise agreed by the 
Director and the Secretary of Defense pursuant to the direction of the 
President.''.
    (d) Clerical Amendment.--The table of contents in the first section 
of such Act is amended by inserting after section 109 the following new 
items:

``Sec. 120. National mission of National Imagery and Mapping Agency.
``Sec. 121. Collection tasking authority.''.

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.''; and
            (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.''.

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 carrying out or supporting 
        activities described in such subsection (e)(5), including any 
        nonlethal, individual or small-team landmine cleaning equipment 
        or supplies that are to be transferred or otherwise furnished 
        to a foreign country in furtherance of the provision of 
        assistance under this section.
            ``(C) The cost of any equipment, services, or supplies 
        provided pursuant to subparagraph (B) may not exceed $5,000,000 
        each year.''.

SEC. 1007. 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. 1008. 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. 1009. DESIGNATION AND LIABILITY OF DISBURSING AND CERTIFYING 
              OFFICIALS FOR THE COAST GUARD.

    (a) Disbursing Officials.--(1) Section 3321(c) of title 31, United 
States Code, is amended by adding at the end the following:
            ``(3) The Department of Transportation (with respect to 
        public money available for expenditure by the Coast Guard when 
        it is not operating as a service in the Navy).''.
    (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. 1010. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION ACTIONS AGAINST 
              DECEASED MEMBERS OF THE COAST GUARD.

    Section 3711(g) of title 31, United States Code, is amended--
            (1) in paragraph (1), by striking out ``or Marine Corps'' 
        and inserting in lieu thereof ``Marine Corps, or Coast Guard'';
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) The Secretary of Transportation may suspend or terminate an 
action by the Secretary under subsection (a) to collect a claim against 
the estate of a person who died while serving on active duty as a 
member of the Coast Guard if the Secretary determines that, under the 
circumstances applicable with respect to the deceased person, it is 
appropriate to do so.''.

SEC. 1011. 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, if the 
Secretary determines that the tugboats are not needed for transfer, 
donation, or other disposal under title II of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481 et seq.). A transfer 
made under the preceding sentence 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).

SEC. 1025. SENSE OF THE SENATE CONCERNING USS LCS 102 (LSSL 102).

    It is the sense of the Senate that the Secretary of Defense should 
use existing authorities in law to seek the expeditious return, upon 
completion of service, of the former USS LCS 102 (LSSL 102) from the 
Government of Thailand in order for the ship to be transferred to the 
United States Shipbuilding Museum in Quincy, Massachusetts.

                  Subtitle C--Counter-Drug Activities

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

    (a) Authority To Provide Additional Support.--Subject to 
subsections (e) and (f), 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.
    (e) Limitations.--(1) The Secretary may not obligate or expend 
funds to provide support under this section until 15 days after the 
date on which the Secretary submits to the committees referred to in 
paragraph (3) the certification described in paragraph (2).
    (2) The certification referred to in paragraph (1) is a written 
certification of the following:
            (A) That the provision of support under this section will 
        not adversely affect the military preparedness of the United 
        States Armed Forces.
            (B) That the equipment and materiel provided as support 
        will be used only by officials and employees of the Government 
        of Mexico who have undergone a background check by that 
        government.
            (C) That the Government of Mexico has certified to the 
        Secretary that--
                    (i) the equipment and material provided as support 
                will be used only by the officials and employees 
                referred to in subparagraph (B);
                    (ii) none of the equipment or materiel will be 
                transferred (by sale, gift, or otherwise) to any person 
                or entity not authorized by the United States to 
                receive the equipment or materiel; and
                    (iii) the equipment and materiel will be used only 
                for the purposes intended by the United States 
                Government.
            (D) That the Government of Mexico has implemented, to the 
        satisfaction of the Secretary, a system that will provide an 
        accounting and inventory of the equipment and materiel provided 
        as support.
            (E) That the departments, agencies, and instrumentalities 
        of the Government of Mexico will grant United States Government 
        personnel unrestricted access to any of the equipment or 
        materiel provided as support, or to any of the records relating 
        to such equipment or materiel, under terms and conditions 
        similar to the terms and conditions imposed with respect to 
        such access under section 505(a)(3) of the Foreign Assistance 
        Act of 1961 (22 U.S.C. 2314(a)(3)).
            (F) That the Government of Mexico will provide security 
        with respect to the equipment and materiel provided as support 
        that is equivalent to the security that the United States 
        Government would provide with respect to such equipment and 
        materiel.
            (G) That the Government of Mexico will permit continuous 
        observation and review by United States Government personnel of 
        the use of the equipment and materiel provided as support under 
        terms and conditions similar to the terms and conditions 
        imposed with respect to such observation and review under 
        section 505(a)(3) of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2314(a)(3)).
    (3) The committees referred to in this paragraph are the following:
            (A) The Committees on Armed Services and Foreign Relations 
        of the Senate.
            (B) The Committees on National Security and International 
        Relations of the House of Representatives.
    (f) Prohibition on Provision of Certain Military Equipment.--The 
Secretary may not provide as support under this section--
            (1) any article of military equipment for which special 
        export controls are warranted because of the substantial 
        military utility or capability of such equipment;
            (2) any military equipment identified on the United States 
        Munitions List; or
            (3) any of the following military equipment (whether or not 
        the equipment has been equipped, re-equipped, or modified for 
        military operations):
                    (A) Cargo aircraft bearing ``C'' designations, 
                including aircraft with designations C-45 through C-
                125, C-131 aircraft, and aircraft bearing ``C'' 
                designations that use reciprocating engines.
                    (B) Trainer aircraft bearing ``T'' designations, 
                including aircraft bearing such designations that use 
                reciprocating engines or turboprop engines delivering 
                less than 600 horsepower.
                    (C) Utility aircraft bearing ``U'' designations, 
                including UH-1 aircraft and UH/EH-60 aircraft and 
                aircraft bearing such designations that use 
                reciprocating engines.
                    (D) Liaison aircraft bearing ``L'' designations.
                    (E) Observation aircraft bearing ``O'' 
                designations, including OH-58 aircraft and aircraft 
                bearing such designations that use reciprocating 
                engines.
                    (F) Truck, tractors, trailers, and vans, including 
                all vehicles bearing ``M'' designations.

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''.

SEC. 1044. PROHIBITION ON COLLECTION AND RELEASE OF DETAILED SATELLITE 
              IMAGERY RELATING TO ISRAEL AND OTHER COUNTRIES AND AREAS.

    (a) Collection and Dissemination.--No department or agency of the 
Federal Government may license the collection or dissemination by any 
non-Federal entity of satellite imagery with respect to Israel, or to 
any other country or geographic area designated by the President for 
this purpose, unless such imagery is no more detailed or precise than 
satellite imagery of the country or geographic area concerned that is 
routinely available from commercial sources.
    (b) Declassification and Release.--No department or agency of the 
Federal Government may declassify or otherwise release satellite 
imagery with respect to Israel, or to any other country or geographic 
area designated by the President for this purpose, unless such imagery 
is no more detailed or precise than satellite imagery of the country or 
geographic area concerned that is routinely available from commercial 
sources.

SEC. 1045. DEFENSE BURDENSHARING.

    (a) Findings.--Congress makes the following findings:
            (1) The United States continues to spend billions of 
        dollars to promote regional security and to make preparations 
        for regional contingencies.
            (2) United States defense expenditures promote United 
        States national security interests; however, they also 
        significantly contribute to the defense of our allies.
            (3) In 1993, the gross domestic product of the United 
        States equaled $6,300,000,000,000, while the gross domestic 
        product of other NATO member countries totaled 
        $7,200,000,000,000.
            (4) Over the course of 1993, the United States spent 4.7 
        percent of its gross domestic product on defense, while other 
        NATO members collectively spent 2.5 percent of their gross 
        domestic product on defense.
            (5) In addition to military spending, foreign assistance 
        plays a vital role in the establishment and maintenance of 
        stability in other nations and in implementing the United 
        States national security strategy.
            (6) This assistance has often prevented the outbreak of 
        conflicts which otherwise would have required costly military 
        interventions by the United States and our allies.
            (7) From 1990-1993, the United States spent $59,000,000,000 
        in foreign assistance, a sum which represents an amount greater 
        than any other nation in the world.
            (8) In 1995, the United States spent over $10,000,000,000 
        to promote European security, while European NATO nations only 
        contributed $2,000,000,000 toward this effort.
            (9) With a smaller gross domestic product and a larger 
        defense budget than its European NATO allies, the United States 
        shoulders an unfair share of the burden of the common defense.
            (10) Japan now pays over 75 percent of the nonpersonnel 
        costs incurred by United States military forces permanently 
        assigned there, while our European allies pay for less than 25 
        percent of these same costs. Japan signed a new Special 
        Measures Agreement this year which will increase Japan's 
        contribution toward the cost of stationing United States troops 
        in Japan by approximately $30,000,000 a year over the next five 
        years.
            (11) These increased contributions help to rectify the 
        imbalance in the burden shouldered by the United States for the 
        common defense.
            (12) The relative share of the burden of the common defense 
        still falls too heavily on the United States, and our allies 
        should dedicate more of their own resources to defending 
        themselves.
    (b) Efforts To Increase Allied Burdensharing.--The President shall 
seek to have each nation that has cooperative military relations with 
the United States (including security agreements, basing arrangements, 
or mutual participation in multinational military organizations or 
operations) take one or more of the following actions:
            (1) Increase its financial contributions to the payment of 
        the nonpersonnel costs incurred by the United States Government 
        for stationing United States military personnel in that nation, 
        with a goal of achieving the following percentages of such 
        costs:
                    (A) By September 30, 1997, 37.5 percent.
                    (B) By September 30, 1998, 50 percent.
                    (C) By September 30, 1999, 62.5 percent.
                    (D) By September 30, 2000, 75 percent.
        An increase in financial contributions by any nation under this 
        paragraph may include the elimination of taxes, fees, or other 
        charges levied on United States military personnel, equipment, 
        or facilities stationed in that nation.
            (2) Increase its annual budgetary outlays for national 
        defense as a percentage of its gross domestic product by 10 
        percent or at least to a level commensurate to that of the 
        United States by September 30, 1997.
            (3) Increase its annual budgetary outlays for foreign 
        assistance (to promote democratization, economic stabilization, 
        transparency arrangements, defense economic conversion, respect 
        for the rule of law, and internationally recognized human 
        rights) by 10 percent or at least to a level commensurate to 
        that of the United States by September 30, 1997.
            (4) Increase the amount of military assets (including 
        personnel, equipment, logistics, support and other resources) 
        that it contributes, or would be prepared to contribute, to 
        multinational military activities worldwide.
    (c) Authorities to Encourage Actions by United States Allies.--In 
seeking the actions described in subsection (b) with respect to any 
nation, or in response to a failure by any nation to undertake one or 
more of such actions, the President may take any of the following 
measures:
            (1) Reduce the end strength level of members of the Armed 
        Forces assigned to permanent duty ashore in that nation.
            (2) Impose on that nation taxes, fees, or other charges 
        similar to those that such nation imposes on United States 
        forces stationed in that nation.
            (3) Reduce (through rescission, impoundment, or other 
        appropriate procedures as authorized by law) the amount the 
        United States contributes to the NATO Civil Budget, Military 
        Budget, or Security Investment Program.
            (4) Suspend, modify, or terminate any bilateral security 
        agreement the United States has with that nation.
            (5) Reduce (through rescission, impoundment or other 
        appropriate procedures as authorized by law) any United States 
        bilateral assistance appropriated for that nation.
            (6) Take any other action the President determines to be 
        appropriate as authorized by law.
    (d) Report on Progress in Increasing Allied Burdensharing.--Not 
later than March 1, 1997, the Secretary of Defense shall submit to 
Congress a report on--
            (1) steps taken by other nations to complete the actions 
        described in subsection (b);
            (2) all measures taken by the President, including those 
        authorized in subsection (c), to achieve the actions described 
        in subsection (b); and
            (3) the budgetary savings to the United States that are 
        expected to accrue as a result of the steps described under 
        paragraph (1).
    (e) Report on National Security Bases for Forward Deployment and 
Burdensharing Relationships.--(1) In order to ensure the best 
allocation of budgetary resources, the President shall undertake a 
review of the status of elements of the United States Armed Forces that 
are permanently stationed outside the United States. The review shall 
include an assessment of the following:
            (A) The alliance requirements that are to be found in 
        agreements between the United States and other countries.
            (B) The national security interests that support 
        permanently stationing elements of the United States Armed 
        Forces outside the United States.
            (C) The stationing costs associated with the forward 
        deployment of elements of the United States Armed Forces.
            (D) The alternatives available to forward deployment (such 
        as material prepositioning, enhanced airlift and sealift, or 
        joint training operations) to meet such alliance requirements 
        or national security interests, with such alternatives 
        identified and described in detail.
            (E) The costs and force structure configurations associated 
        with such alternatives to forward deployment.
            (F) The financial contributions that allies of the United 
        States make to common defense efforts (to promote 
        democratization, economic stabilization, transparency 
        arrangements, defense economic conversion, respect for the rule 
        of law, and internationally recognized human rights).
            (G) The contributions that allies of the United States make 
        to meeting the stationing costs associated with the forward 
        deployment of elements of the United States Armed Forces.
            (H) The annual expenditures of the United States and its 
        allies on national defense, and the relative percentages of 
        each nation's gross domestic product constituted by those 
        expenditures.
    (2) The President shall submit to Congress a report on the review 
under paragraph (1). The report shall be submitted not later than March 
1, 1997, in classified and unclassified form.

SEC. 1046. SENSE OF THE SENATE CONCERNING EXPORT CONTROLS.

    (a) Findings.--The Senate makes the following findings:
            (1) Export controls are a part of a comprehensive response 
        to national security threats. United States exports should be 
        restricted where those threats exist to national security, 
        nonproliferation, and foreign policy interests of the United 
        States.
            (2) The export of certain commodities and technology may 
        adversely affect the national security and foreign policy of 
        the United States by making a significant contribution to the 
        military potential of individual countries or by disseminating 
        the capability to design, develop, test, produce, stockpile, or 
        use weapons of mass destruction, missile delivery systems, and 
        other significant military capabilities. Therefore, the 
        administration of export controls should emphasize the control 
        of these exports.
            (3) The acquisition of sensitive commodities and 
        technologies by those countries and end users whose actions or 
        policies run counter to United States national security or 
        foreign policy interests may enhance the military capabilities 
        of those countries, particularly their ability to design, 
        develop, test, produce, stockpile, use, and deliver nuclear, 
        chemical, and biological weapons, missile delivery systems, and 
        other significant military capabilities. This enhancement 
        threatens the security of the United States and its allies. The 
        availability to countries and end users of items that 
        contribute to military capabilities or the proliferation of 
        weapons of mass destruction is a fundamental concern of the 
        United States and should be eliminated through deterrence, 
        negotiations, and other appropriate means whenever possible.
            (4) The national security of the United States depends not 
        only on wise foreign policies and a strong defense, but also a 
        vibrant national economy. To be truly effective, export 
        controls should be applied uniformly by all suppliers.
            (5) On November 5, 1995, President William J. Clinton 
        extended Executive Order No. 12938 regarding ``Weapons of Mass 
        Destruction'', and ``declared a national emergency with respect 
        to the unusual and extraordinary threat to the national 
        security, foreign policy, and economy of the United States 
        posed by the proliferation of nuclear, biological, and chemical 
        weapons and the means of delivering such weapons''.
            (6) A successor regime to COCOM (the Coordinating 
        Commission on Multilateral Controls) has not been established. 
        Currently, each nation is determining independently which dual-
        use military items, if any, will be controlled for export.
            (7) The United States should play a leading role in 
        promoting transparency and responsibility with regard to the 
        transfers of sensitive dual-use goods and technologies.
    (b) Sense of Senate.--It is the sense of the Senate that--
            (1) establishing an international export control regime, 
        empowered to control exports of dual-use technology, is 
        critically important and should become a top priority for the 
        United States; and
            (2) the United States should strongly encourage its allies 
        and friends to--
                    (A) adopt a commodity control list which governs 
                the same or similar items as are controlled by the 
                United States Commodity Control list;
                    (B) strengthen enforcement activities; and
                    (C) explore the use of unilateral export controls 
                where the possibility exists that an export could 
                contribute to proliferation.

SEC. 1047. REPORT ON NATO ENLARGEMENT.

    (a) Report.--Not later than December 1, 1996, the President shall 
transmit a report on NATO enlargement to the Committee on Armed 
Services and the Committee on Foreign Relations of the Senate and the 
Committee on National Security and the Committee on International 
Relations of the House of Representatives. The report shall contain a 
comprehensive discussion of the following:
            (1) Geopolitical and financial costs and benefits, 
        including financial savings, associated with--
                    (A) enlargement of NATO;
                    (B) further delays in the process of NATO 
                enlargement; and
                    (C) a failure to enlarge NATO.
            (2) Additional NATO and United States military expenditures 
        requested by prospective NATO members to facilitate their 
        admission into NATO.
            (3) Modifications necessary in NATO's military strategy and 
        force structure required by the inclusion of new members and 
        steps necessary to integrate new members, including the role of 
        nuclear and conventional capabilities, reinforcement, force 
        deployments, prepositioning of equipment, mobility, and 
        headquarter locations.
            (4) The relationship between NATO enlargement and 
        transatlantic stability and security.
            (5) The state of military preparedness and interoperability 
        of Central and Eastern European nations as it relates to the 
        responsibilities of NATO membership and additional security 
        costs or benefits that may accrue to the United States from 
        NATO enlargement.
            (6) The state of democracy and free market development as 
        it affects the preparedness of Central and Eastern European 
        nations for the responsibilities of NATO membership, including 
        civilian control of the military, the rule of law, human 
        rights, and parliamentary oversight.
            (7) The state of relations between prospective NATO members 
        and their neighbors, steps taken by prospective members to 
        reduce tensions, and mechanisms for the peaceful resolution of 
        border disputes.
            (8) The commitment of prospective NATO members to the 
        principles of the North Atlantic Treaty and the security of the 
        North Atlantic area.
            (9) The effect of NATO enlargement on the political, 
        economic, and security conditions of European Partnership for 
        Peace nations not among the first new NATO members.
            (10) The relationship between NATO enlargement and EU 
        enlargement and the costs and benefits of both.
            (11) The relationship between NATO enlargement and treaties 
        relevant to United States and European security, such as the 
        Conventional Armed Forces in Europe Treaty.
            (12) The anticipated impact both of NATO enlargement and 
        further delays of NATO enlargement on Russian foreign and 
        defense policies and the costs and benefits of a security 
        relationship between NATO and Russia.
    (b) Independent Assessment.--Not later than 15 days after enactment 
of this Act, the Majority Leader of the Senate and the Speaker of the 
House of Representatives shall appoint a chairman and two other Members 
and the Minority Leaders of the Senate and House of Representatives 
shall appoint two Members to serve on a bipartisan review group of 
nongovernmental experts to conduct an independent assessment of NATO 
enlargement, including a comprehensive review of the issues in 
subsection (a) (1) through (12) above. The report of the review group 
shall be completed no later than December 1, 1996. The Secretary of 
Defense shall furnish the review group administrative and support 
services requested by the review group. The expenses of the review 
group shall be paid out of funds available for the payment of similar 
expenses incurred by the Department of Defense.
    (c) Interpretation.--Nothing in this section should be interpreted 
or construed to affect the implementation of the NATO Participation Act 
of 1994, as amended (Public Law 103-447), or any other program or 
activity which facilitates or assists prospective NATO members.

            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.

SEC. 1054. ANNUAL REPORT OF RESERVE FORCES POLICY BOARD.

    Section 113(c) of title 10, United States Code, is amended--
            (1) by striking out paragraph (3);
            (2) by redesignating paragraphs (1), (2), and (4) as 
        subparagraphs (A), (B), and (C), respectively;
            (3) by inserting ``(1)'' after ``(c)'';
            (4) by inserting ``and'' at the end of subparagraph (B), as 
        redesignated by paragraph (2); and
            (5) by adding at the end the following:
    ``(2) At the same time that the Secretary submits the annual report 
under paragraph (1), the Secretary shall transmit to the President and 
Congress a separate report from the Reserve Forces Policy Board on the 
reserve programs of the Department of Defense and on any other matters 
that the Reserve Forces Policy Board considers appropriate to include 
in the report.''.

SEC. 1055. INFORMATION ON PROPOSED FUNDING FOR THE GUARD AND RESERVE 
              COMPONENTS IN FUTURE-YEARS DEFENSE PROGRAMS.

    (a) Requirement.--The Secretary of Defense shall specify in each 
future-years defense program submitted to Congress after the date of 
the enactment of this Act the estimated expenditures and proposed 
appropriations for the procurement of equipment and for military 
construction for each of the Guard and Reserve components.
    (b) Definition.--For purposes of this section, the term ``Guard and 
Reserve components'' means the following:
            (1) The Army Reserve.
            (2) The Army National Guard of the United States.
            (3) The Naval Reserve.
            (4) The Marine Corps Reserve.
            (5) The Air Force Reserve.
            (6) The Air National Guard of the United States.

SEC. 1056. REPORT ON FACILITIES USED FOR TESTING LAUNCH VEHICLE 
              ENGINES.

    (a) Report Required.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Defense, in consultation with 
the Administrator of the National Aeronautics and Space Administration, 
shall submit to Congress a report on the facilities used for testing 
launch vehicle engines.
    (b) Content of Report.--The report shall contain an analysis of the 
duplication between Air Force and National Aeronautics and Space 
Administration hydrogen rocket test facilities and the potential 
benefits of further coordinating activities at such facilities.

                       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''.
    (c) Repeal of 13-Year Special Limit on Term of Transitional Judge 
of United States Court of Appeals for the Armed Forces.--(1) Subsection 
(d)(2) of section 1301 of the National Defense Authorization Act for 
Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1575; 10 
U.S.C. 942 note) is amended by striking out ``to the judges who are 
first appointed to the two new positions of the court created as of 
October 1, 1990--'' and all that follows and inserting in lieu thereof 
``to the judge who is first appointed to one of the two new positions 
of the court created as of October 1, 1990, as designated by the 
President at the time of appointment, the anniversary referred to in 
subparagraph (A) of that paragraph shall be treated as being the 
seventh anniversary and the number of years referred to in subparagraph 
(B) of that paragraph shall be treated as being seven.''.
    (2) Subsection (e)(1) of such section is amended by striking out 
``each judge'' and inserting in lieu thereof ``a judge''.

SEC. 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'').
    (d) Retention of B-52H Aircraft on Active Status.--(1) The 
Secretary of the Air Force shall maintain in active status (including 
the performance of standard maintenance and upgrades) the current fleet 
of B-52H bomber aircraft.
    (2) For purposes of carrying out upgrades of B-52H bomber aircraft 
during fiscal year 1997, the Secretary shall treat the entire current 
fleet of such aircraft as aircraft expected to be maintained in active 
status during the five-year period beginning on October 1, 1996.

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''.

SEC. 1072. SENSE OF THE SENATE REGARDING THE UNITED STATES-JAPAN 
              SEMICONDUCTOR TRADE AGREEMENT.

    (a) Findings.--The Senate makes the following findings:
            (1) The United States and Japan share a long and important 
        bilateral relationship which serves as an anchor of peace and 
        stability in the Asia Pacific region, an alliance which was 
        reaffirmed at the recent summit meeting between President 
        Clinton and Prime Minister Hashimoto in Tokyo.
            (2) The Japanese economy has experienced difficulty over 
        the past few years, demonstrating that it is no longer possible 
        for Japan, the world's second largest economy, to use exports 
        as the sole engine of economic growth, but that the Government 
        of Japan must promote deregulation of its domestic economy in 
        order to increase economic growth.
            (3) Deregulation of the Japanese economy requires 
        government attention to the removal of barriers to imports of 
        manufactured goods.
            (4) The United States-Japan Semiconductor Trade Agreement 
        has begun the process of deregulation in the semiconductor 
        sector and is opening the Japanese market to competitive 
        foreign products.
            (5) The United States-Japan Semiconductor Trade Agreement 
        has put in place both government-to-government and industry-to-
        industry mechanisms which have played a vital role in allowing 
        cooperation to replace conflict in this important high 
        technology sector.
            (6) The mechanisms include joint calculation of foreign 
        market share, deterrence of dumping, and promotion of 
        industrial cooperation in the design of foreign semiconductor 
        devices.
            (7) Because of these actions under the United States-Japan 
        Semiconductor Trade Agreement, the United States and Japan 
        today enjoy trade in semiconductors which is mutually 
        beneficial, harmonious, and free from the friction that once 
        characterized the semiconductor industry.
            (8) Because of structural barriers in Japan, a gap still 
        remains between the share of the world market for semiconductor 
        products outside Japan that the United States and other foreign 
        semiconductor sources are able to capture through 
        competitiveness and the share of the Japanese semiconductor 
        market that the United States and those other sources are able 
        to capture through competitiveness, and that gap is consistent 
        across the full range of semiconductor products as well as a 
        full range of end-use applications.
            (9) The competitiveness and health of the United States 
        semiconductor industry is of critical importance to the overall 
        economic well-being and high technology defense capabilities of 
        the United States.
            (10) The economic interests of both the United States and 
        Japan are best served by well functioning, open markets, 
        deterrence of dumping, and continuing good cooperative 
        relationships in all sectors, including semiconductors.
            (11) A strong and healthy and military and political 
        alliance between the United States and Japan requires 
        continuation of the industrial and economic cooperation 
        promoted by the United States-Japan Semiconductor Trade 
        Agreement.
            (12) President Clinton has called on the Government of 
        Japan to agree to a continuation of a United States-Japan 
        Semiconductor Trade Agreement beyond the current agreement's 
        expiration on July 31, 1996.
            (13) The Government of Japan has opposed any continuation 
        of a government-to-government agreement to promote cooperation 
        in United States-Japan semiconductor trade.
    (b) Sense of Senate.--It is the sense of the Senate that--
            (1) it is regrettable that the Government of Japan has 
        refused to consider continuation of a government-to-government 
        agreement to ensure that cooperation continues in the 
        semiconductor sector beyond the expiration of the Semiconductor 
        Trade Agreement on July 31, 1996; and
            (2) the President should take all necessary and appropriate 
        actions to ensure the continuation of a government-to-
        government United States-Japan Semiconductor Trade Agreement 
        before the current agreement expires on that date.
    (c) Definition.--As used in this section, the term ``United States-
Japan Semiconductor Trade Agreement'' refers to the agreement between 
the United States and Japan concerning trade in semiconductor products, 
with arrangement, done by exchange of letters at Washington on June 11, 
1991.

SEC. 1073. FOOD DONATION PILOT PROGRAM AT THE SERVICE ACADEMIES.

    (a) Program Authorized.--The Secretaries of the military 
departments and the Secretary of Transportation may each carry out a 
food donation pilot program at the service academy under the 
jurisdiction of the Secretary.
    (b) Donations and Collections of Food and Grocery Products.--Under 
the pilot program, the Secretary concerned may donate to, and permit 
others to collect for, a nonprofit organization any food or grocery 
product that--
            (1) is--
                    (A) an apparently wholesome food;
                    (B) an apparently fit grocery product; or
                    (C) a food or grocery product that is donated in 
                accordance with section 402(e) of the National and 
                Community Service Act of 1990 (42 U.S.C. 12672(e));
            (2) is owned by the United States;
            (3) is located at a service academy under the jurisdiction 
        of the Secretary; and
            (4) is excess to the requirements of the academy.
    (c) Program Commencement.--The Secretary concerned shall commence 
carrying out the pilot program, if at all, during fiscal year 1997.
    (d) Applicability of Good Samaritan Food Donation Act..--Section 
402 of the National and Community Service Act of 1990 (42 U.S.C. 12672) 
shall apply to donations and collections of food and grocery products 
under the pilot program without regard to section 403 of such Act (42 
U.S.C. 12673).
    (e) Reports.--(1) Each Secretary that carries out a pilot program 
at a service academy under this section shall submit to Congress an 
interim report and a final report on the pilot program.
    (2) The Secretary concerned shall submit the interim report not 
later than one year after the date on which the Secretary commences the 
pilot program at a service academy.
    (3) The Secretary concerned shall submit the final report not later 
than 90 days after the Secretary completes the pilot program at a 
service academy.
    (4) Each report shall include the following:
            (A) A description of the conduct of the pilot program.
            (B) A discussion of the experience under the pilot program.
            (C) An evaluation of the extent to which section 402 of the 
        National and Community Service Act of 1990 (42 U.S.C. 12672) 
        has been effective in protecting the United States and others 
        from liabilities associated with actions taken under the pilot 
        program.
            (D) Any recommendations for legislation to facilitate 
        donations or collections of excess food and grocery products of 
        the United States or others for nonprofit organizations.
    (f) Definitions.--In this section:
            (1) The term ``service academy'' means each of the 
        following:
                    (A) The United States Military Academy.
                    (B) The United States Naval Academy.
                    (C) The United States Air Force Academy.
                    (D) The United States Coast Guard Academy.
            (2) The term ``Secretary concerned'' means the following:
                    (A) The Secretary of the Army, with respect to the 
                United States Military Academy.
                    (B) The Secretary of the Navy, with respect to the 
                United States Naval Academy.
                    (C) The Secretary of the Air Force, with respect to 
                the United States Air Force Academy.
                    (D) The Secretary of Transportation, with respect 
                to the United States Coast Guard Academy.
            (3) The terms ``apparently fit grocery product'', 
        ``apparently wholesome food'', ``donate'', ``food'', and 
        ``grocery product'' have the meanings given those terms in 
        section 402(b) of the National and Community Service Act of 
        1990 (42 U.S.C. 12672(b)).

SEC. 1074. DESIGNATION OF MEMORIAL AS NATIONAL D-DAY MEMORIAL.

    (a) Designation.--The memorial to be constructed by the National D-
Day Memorial Foundation in Bedford, Virginia, is hereby designated as a 
national memorial to be known as the ``National D-Day Memorial''. The 
memorial shall serve to honor the members of the Armed Forces of the 
United States who served in the invasion of Normandy, France, in June 
1944.
    (b) Public Proclamation.--The President is requested and urged to 
issue a public proclamation acknowledging the designation of the 
memorial to be constructed by the National D-Day Memorial Foundation in 
Bedford, Virginia, as the National D-Day Memorial.
    (c) Maintenance of Memorial.--All expenses for maintenance and care 
of the memorial shall be paid for with non-Federal funds, including 
funds provided by the National D-Day Memorial Foundation. The United 
States shall not be liable for any expense incurred for the maintenance 
and care of the memorial.

SEC. 1075. IMPROVEMENTS TO NATIONAL SECURITY EDUCATION PROGRAM.

    (a) Repeal of Temporary Requirement Relating to Employment.--Title 
VII of the Department of Defense Appropriations Act, 1996 (Public Law 
104-61; 109 Stat. 650), is amended under the heading ``National 
Security Education Trust Fund'' by striking out the proviso.
    (b) General Program Requirements.--Subsection (a)(1) of section 802 
of the David L. Boren National Security Education Act of 1991 (title 
VIII of Public Law 102-183; 50 U.S.C. 1902) is amended--
            (1) by striking out subparagraph (A) and inserting in lieu 
        thereof the following new subparagraph (A):
                    ``(A) awarding scholarships to undergraduate 
                students who--
                            ``(i) are United States citizens in order 
                        to enable such students to study, for at least 
                        one academic semester or equivalent term, in 
                        foreign countries that are critical countries 
                        (as determined under section 803(d)(4)(A) of 
                        this title) in those languages and study areas 
                        where deficiencies exist (as identified in the 
                        assessments undertaken pursuant to section 
                        806(d) of this title); and
                            ``(ii) pursuant to subsection (b)(2)(A) of 
                        this section, enter into an agreement to work 
                        for, and make their language skills available 
                        to, an agency or office of the Federal 
                        Government or work in the field of higher 
                        education in the area of study for which the 
                        scholarship was awarded;''; and
            (2) in subparagraph (B)--
                    (A) in clause (i), by inserting ``relating to the 
                national security interests of the United States'' 
                after ``international fields''; and
                    (B) in clause (ii)--
                            (i) by striking out ``subsection (b)(2)'' 
                        and inserting in lieu thereof ``subsection 
                        (b)(2)(B)''; and
                            (ii) by striking out ``work for an agency 
                        or office of the Federal Government or in'' and 
                        inserting in lieu thereof ``work for, and make 
                        their language skills available to, an agency 
                        or office of the Federal Government or work 
                        in''.
    (c) Service Agreement.--Subsection (b) of that section is amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``, or of scholarships'' and all that follows through ``12 
        months or more,'' and inserting in lieu thereof ``or any 
        scholarship''.
            (2) by striking out paragraph (2) and inserting in lieu 
        thereof the following new paragraph (2):
            ``(2) will--
                    ``(A) not later than eight years after such 
                recipient's completion of the study for which 
                scholarship assistance was provided under the program, 
                and in accordance with regulations issued by the 
                Secretary--
                            ``(i) work in an agency or office of the 
                        Federal Government having national security 
                        responsibilities (as determined by the 
                        Secretary in consultation with the National 
                        Security Education Board) and make available 
                        such recipient's foreign language skills to an 
                        agency or office of the Federal Government 
                        approved by the Secretary (in consultation with 
                        the Board), upon the request of the agency or 
                        office, for a period specified by the 
                        Secretary, which period shall be no longer than 
                        the period for which scholarship assistance was 
                        provided; or
                            ``(ii) if the recipient demonstrates to the 
                        Secretary (in accordance with such regulations) 
                        that no position in an agency or office of the 
                        Federal Government having national security 
                        responsibilities is available, work in the 
                        field of higher education in a discipline 
                        relating to the foreign country, foreign 
                        language, area study, or international field of 
                        study for which the scholarship was awarded, 
                        for a period specified by the Secretary, which 
                        period shall be determined in accordance with 
                        clause (i); or
                    ``(B) upon completion of such recipient's education 
                under the program, and in accordance with such 
                regulations--
                            ``(i) work in an agency or office of the 
                        Federal Government having national security 
                        responsibilities (as so determined) and make 
                        available such recipient's foreign language 
                        skills to an agency or office of the Federal 
                        Government approved by the Secretary (in 
                        consultation with the Board), upon the request 
                        of the agency or office, for a period specified 
                        by the Secretary, which period shall be not 
                        less than one and not more than three times the 
                        period for which the fellowship assistance was 
                        provided; or
                            ``(ii) if the recipient demonstrates to the 
                        Secretary (in accordance with such regulations) 
                        that no position in an agency or office of the 
                        Federal Government having national security 
                        responsibilities is available upon the 
                        completion of the degree, work in the field of 
                        higher education in a discipline relating to 
                        the foreign country, foreign language, area 
                        study, or international field of study for 
                        which the fellowship was awarded, for a period 
                        specified by the Secretary, which period shall 
                        be established in accordance with clause (i); 
                        and''.
    (d) Evaluation of Progress in Language Skills.--Such section 802 is 
further amended by--
            (1) redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Evaluation of Progress in Language Skills.--The Secretary 
shall, through the National Security Education Program office, 
administer a test of the foreign language skills of each recipient of a 
scholarship or fellowship under this title before the commencement of 
the study or education for which the scholarship or fellowship is 
awarded and after the completion of such study or education. The 
purpose of the tests is to evaluate the progress made by recipients of 
scholarships and fellowships in developing foreign language skills as a 
result of assistance under this title.''.
    (e) Functions of the National Security Education Board.--Section 
803(d) of that Act (50 U.S.C. 1903(d)) is amended--
            (1) in paragraph (1), by inserting ``, including an order 
        of priority in such awards that favors individuals expressing 
        an interest in national security issues or pursuing a career in 
        an agency or office of the Federal Government having national 
        security responsibilities'' before the period;
            (2) in paragraph (4)--
                    (A) in the matter preceding subparagraph (A), by 
                striking out ``Make recommendations'' and inserting in 
                lieu thereof ``After taking into account the annual 
                analyses of trends in language, international, and area 
                studies under section 806(b)(1), make 
                recommendations'';
                    (B) in subparagraph (A), by inserting ``and 
                countries which are of importance to the national 
                security interests of the United States'' after ``are 
                studying''; and
                    (C) in subparagraph (B), by inserting ``relating to 
                the national security interests of the United States'' 
                after ``of this title'';
            (3) by redesignating paragraph (5) as paragraph (7); and
            (4) by inserting after paragraph (4) the following new 
        paragraphs:
            ``(5) Encourage applications for fellowships under this 
        title from graduate students having an educational background 
        in disciplines relating to science or technology.
            ``(6) Provide the Secretary on an on-going basis with a 
        list of scholarship recipients and fellowship recipients who 
        are available to work for, or make their language skills 
        available to, an agency or office of the Federal Government 
        having national security responsibilities.''.
    (f) Report on Program.--(1) Not later than six months after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report assessing the improvements to the program 
established under the David L. Boren National Security Education Act of 
1991 (title VIII of Public Law 102-183; 50 U.S.C. 1901 et seq.) that 
result from the amendments made by this section.
    (2) The report shall also include an assessment of the contribution 
of the program, as so improved, in meeting the national security 
objectives of the United States.

SEC. 1076. REIMBURSEMENT FOR EXCESSIVE COMPENSATION OF CONTRACTOR 
              PERSONNEL PROHIBITED.

    (a) Armed Services Procurements.--Section 2324(e)(1) of title 10, 
United States Code, is amended by adding at the end the following:
                    ``(P) Costs of compensation (including bonuses and 
                other incentives) paid with respect to the services 
                (including termination of services) of any one 
                individual to the extent that the total amount of the 
                compensation paid in a fiscal year exceeds $200,000.''.
    (b) Civilian Agency Procurements.--Section 306(e)(1) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 256(e)(1)) 
is amended by adding at the end the following:
                    ``(P) Costs of compensation (including bonuses and 
                other incentives) paid with respect to the services 
                (including termination of services) of any one 
                individual to the extent that the total amount of the 
                compensation paid in a fiscal year exceeds $200,000.''.

SEC. 1077. SENSE OF THE SENATE ON DEPARTMENT OF DEFENSE SHARING OF 
              EXPERIENCES UNDER MILITARY YOUTH PROGRAMS.

    (a) Findings.--The Senate makes the following findings:
            (1) Programs of the Department of Defense for youth who are 
        dependents of members of the Armed Forces have not received the 
        same level of attention and resources as have child care 
        programs of the Department since the passage of the Military 
        Child Care Act of 1989 (title XV of Public Law 101-189; 10 
        U.S.C. 113 note).
            (2) Older children deserve as much attention to their 
        developmental needs as do younger children.
            (3) The Department has started to direct more attention to 
        programs for youths who are dependents of members of the Armed 
        Forces by funding the implementation of 20 model community 
        programs to address the needs of such youths.
            (4) The lessons learned from such programs could apply to 
        civilian youth programs as well.
    (b) Sense of Senate.--It is the sense of the Senate that--
            (1) the Department of Defense, Federal, State, and local 
        agencies, and businesses and communities involved in conducting 
        youth programs could benefit from the development of 
        partnerships to foster an exchange of ideas, information, and 
        materials relating to such programs and to encourage closer 
        relationships between military installations and the 
        communities that support them;
            (2) such partnerships could benefit all families by helping 
        the providers of services for youths exchange ideas about 
        innovative ways to address barriers to the effective provision 
        of such services; and
            (3) there are many ways that such partnerships could be 
        developed, including--
                    (A) cooperation between the Department and Federal 
                and State educational agencies in exploring the use of 
                public school facilities for child care programs and 
                youth programs that are mutually beneficial to the 
                Department and civilian communities and complement 
                programs of the Department carried out at its 
                facilities; and
                    (B) improving youth programs that enable 
                adolescents to relate to new peer groups when families 
                of members of the Armed Forces are relocated.
    (c) Report.--Not later than June 30, 1997, the Secretary of Defense 
shall submit to Congress a report on the status of any initiatives 
undertaken this section, including recommendations for additional ways 
to improve the youth programs of the Department of Defense and to 
improve such programs so as to benefit communities in the vicinity of 
military installations.

SEC. 1078. SENSE OF THE SENATE ON DEPARTMENT OF DEFENSE SHARING OF 
              EXPERIENCES WITH MILITARY CHILD CARE.

    (a) Findings.--The Senate makes the following findings:
            (1) The Department of Defense should be congratulated on 
        the successful implementation of the Military Child Care Act of 
        1989 (title XV of Public Law 101-189; 10 U.S.C. 113 note).
            (2) The actions taken by the Department as a result of that 
        Act have dramatically improved the availability, affordability, 
        quality, and consistency of the child care services provided to 
        members of the Armed Forces.
            (3) Child care is important to the readiness of members of 
        the Armed Forces because single parents and couples in military 
        service must have access to affordable child care of good 
        quality if they are to perform their jobs and respond 
        effectively to long work hours or deployments.
            (4) Child care is important to the retention of members of 
        the Armed Forces in military service because the 
        dissatisfaction of the families of such members with military 
        life is a primary reason for the departure of such members from 
        military service.
    (b) Sense of Senate.--It is the sense of the Senate that--
            (1) the civilian and military child care communities, 
        Federal, State, and local agencies, and businesses and 
        communities involved in the provision of child care services 
        could benefit from the development of partnerships to foster an 
        exchange of ideas, information, and materials relating to their 
        experiences with the provision of such services and to 
        encourage closer relationships between military installations 
        and the communities that support them;
            (2) such partnerships would be beneficial to all families 
        by helping providers of child care services exchange ideas 
        about innovative ways to address barriers to the effective 
        provision of such services; and
            (3) there are many ways that these partnerships can be 
        developed, including--
                    (A) cooperation between the directors and 
                curriculum specialists of military child development 
                centers and civilian child development centers in 
                assisting such centers in the accreditation process;
                    (B) use of family support staff to conduct parent 
                and family workshops for new parents and parents with 
                young children in family housing on military 
                installations and in communities in the vicinity of 
                such installations;
                    (C) internships in Department of Defense child care 
                programs for civilian child care providers to broaden 
                the base of good-quality child care services in 
                communities in the vicinity of military installations; 
                and
                    (D) attendance by civilian child care providers at 
                Department child-care training classes on a space-
                available basis.
    (c) Report.--Not later than June 30, 1997, the Secretary of Defense 
shall submit to Congress a report on the status of any initiatives 
undertaken this section, including recommendations for additional ways 
to improve the child care programs of the Department of Defense and to 
improve such programs so as to benefit civilian child care providers in 
communities in the vicinity of military installations.

SEC. 1079. INCREASE IN PENALTIES FOR CERTAIN TRAFFIC OFFENSES ON 
              MILITARY INSTALLATIONS.

    Section 4 of the Act of June 1, 1948 (40 U.S.C. 318c) is amended to 
read as follows:
    ``Sec. 4. (a) Except as provided in subsection (b), whoever shall 
violate any rule or regulation promulgated pursuant to section 2 of 
this Act may be fined not more than $50 or imprisoned for not more than 
thirty days, or both.
    ``(b) Whoever shall violate any rule or regulation for the control 
of vehicular or pedestrian traffic on military installations that is 
promulgated by the Secretary of Defense, or the designee of the 
Secretary, under the authority delegated pursuant to section 2 of this 
Act may be fined an amount not to exceed the amount of a fine for a 
like or similar offense under the criminal or civil law of the State, 
territory, possession, or district where the military installation is 
located, or imprisoned for not more than thirty days, or both.''.

SEC. 1080. PHARMACEUTICAL INDUSTRY SPECIAL EQUITY.

    (a) Short Title.--This section may be cited as the ``Pharmaceutical 
Industry Special Equity Act of 1996''.
    (b) Approval of Generic Drugs.--
            (1) In general.--With respect to any patent, the term of 
        which is modified under section 154(c)(1) of title 35, United 
        States Code, as amended by the Uruguay Round Agreements Act 
        (Public Law 103-465; 108 Stat. 4983), the remedies of section 
        271(e)(4) of title 35, United States Code, shall not apply if--
                    (A) such patent is the subject of a certification 
                described under--
                            (i) section 505 (b)(2)(A)(iv) or 
                        (j)(2)(A)(vii)(IV) of the Federal Food, Drug, 
                        and Cosmetic Act (21 U.S.C. 355 (b)(2)(A)(iv) 
                        or (j)(2)(A)(vii)(IV)); or
                            (ii) section 512(n)(1)(H)(iv) of such Act 
                        (21 U.S.C. 360b(n)(1)(H)(iv));
                    (B) on or after the date of enactment of this 
                section, such a certification is made in an application 
                that was filed under section 505 or 512 of the Federal 
                Food, Drug, and Cosmetic Act and accepted for filing by 
                the Food and Drug Administration prior to June 8, 1995; 
                and
                    (C) a final order, from which no appeal is pending 
                or may be made, has been entered in an action brought 
                under chapter 28 or 29 of title 35, United States 
                Code--
                            (i) finding that the person who submitted 
                        such certification made a substantial 
                        investment of the type described under section 
                        154(c)(2) of title 35, United States Code, as 
                        amended by the Uruguay Round Agreements Act; 
                        and
                            (ii) establishing the amount of equitable 
                        remuneration of the type described under 
                        section 154(c)(3) of title 35, United States 
                        Code, as amended by the Uruguay Round 
                        Agreements Act, that is required to be paid by 
                        the person who submitted such certification to 
                        the patentee for the product that is the 
                        subject of the certification.
            (2) Determination of substantial investment.--In 
        determining whether a substantial investment has been made in 
        accordance with this section, the court shall find that--
                    (A) a complete application submitted under section 
                505 or 512 of the Federal Food, Drug, and Cosmetic Act 
                was found by the Secretary of Health and Human Services 
                on or before June 8, 1995 to be sufficiently complete 
                to permit substantive review; and
                    (B) the total sum of the investment made by the 
                person submitting such an application--
                            (i) is specifically related to the 
                        research, development, manufacture, sale, 
                        marketing, or other activities undertaken in 
                        connection with, the product covered by such an 
                        application; and
                            (ii) does not solely consist of that 
                        person's expenditures related to the 
                        development and submission of the information 
                        contained in such an application.
            (3) Effective date of approval of application.--In no event 
        shall the Food and Drug Administration make the approval of an 
        application under sections 505 or 512 of the Federal Food, 
        Drug, and Cosmetic Act, which is subject to the provisions of 
        this section, effective prior to the entry of the order 
        described in paragraph (1)(C).
            (4) Applicability.--The provisions of this subsection shall 
        not apply to any patent the term of which, inclusive of any 
        restoration period provided under section 156 of title 35, 
        United States Code, would have expired on or after June 8, 
        1998, under the law in effect on the date before December 8, 
        1994.
    (c) Application of Certain Benefits and Term Extensions to All 
Patents in Force on a Certain Date.--For the purposes of this section 
and the provisions of title 35, United States Code, all patents in 
force on June 8, 1995, including those in force by reason of section 
156 of title 35, United States Code, are entitled to the full benefit 
of the Uruguay Round Agreements Act of 1994 and any extension granted 
before such date under section 156 of title 35, United States Code.
    (d) Extension of Patents Relating to Nonsteroidal Anti-Inflammatory 
Drugs.--
            (1) In general.--Notwithstanding section 154 of title 35, 
        United States Code, the term of patent shall be extended for 
        any patent which encompasses within its scope of composition of 
        matter known as a nonsteroidal anti-inflammatory drug if--
                    (A) during the regulatory review of the drug by the 
                Food and Drug Administration the patentee--
                            (i) filed a new drug application in 1982 
                        under section 505 of the Federal Food, Drug and 
                        Cosmetic Act (21 U.S.C. 355); and
                            (ii) awaited approval by the Food and Drug 
                        Administration for at least 96 months; and
                    (B) such new drug application was approved in 1991.
            (2) Term.--The term of any patent described in paragraph 
        (1) shall be extended from its current expiration date for a 
        period of 2 years.
            (3) Notification.--No later than 90 days after the date of 
        enactment of this section, the patentee of any patent described 
        in paragraph (1) shall notify the Commissioner of Patents and 
        Trademarks of the number of any patent extended under such 
        paragraph. On receipt of such notice, the Commissioner shall 
        confirm such extension by placing a notice thereof in the 
        official file of such patent and publishing an appropriate 
        notice of such extension in the Official Gazette of the Patent 
        and Trademark Office.
    (e) Expedited Procedures for Civil Actions.--
            (1) Application.--(A) This subsection applies to any civil 
        action in a court of the United States brought to determine the 
        rights of the parties under this section, including any 
        determination made under subsection (b).
            (B) For purposes of this subsection the term ``civil 
        action'' refers to a civil action described under subparagraph 
        (A).
            (2) Superseding provisions.--Procedures adopted under this 
        subsection shall supersede any provision of title 28, United 
        States Code, the Federal Rules of Civil Procedure, or the 
        Federal Rules of Appellate Procedure to the extent of any 
        inconsistency.
            (3) Procedures in district court.--No later than 60 days 
        after the date of the enactment of this Act, each district 
        court of the United States shall adopt procedures to--
                    (A) provide for priority in consideration of civil 
                actions on an expedited basis, including consideration 
                of determinations relating to substantial investment, 
                equitable remuneration, and equitable compensation;
                    (B) provide that--
                            (i) no later than 10 days after a party 
                        files an answer to a complaint filed in a civil 
                        action the court shall order that all discovery 
                        (including a hearing on any discovery motions) 
                        shall be completed no later than 60 days after 
                        the date on which the court enters the order; 
                        and
                            (ii) the court may grant a single extension 
                        of the 60-day period referred to under clause 
                        (i) for an additional period of no more than 30 
                        days upon a showing of good cause;
                    (C) require any dispositive motion in a civil 
                action to be filed no later than 30 days after 
                completion of discovery;
                    (D) require that--
                            (i) if a dispositive motion is filed in a 
                        civil action, the court shall rule on such a 
                        motion no later than 30 days after the date on 
                        which the motion is filed;
                            (ii) the court shall begin the trial of a 
                        civil action no later than 60 days after the 
                        later of--
                                    (I) the date on which discovery is 
                                completed in accordance with 
                                subparagraph (B); or
                                    (II) the last day of the 30-day 
                                period referred to under clause (i), if 
                                a dispositive motion is filed;
                    (E) require that if a person does not hold the 
                patent which is the subject of a civil action and is 
                the prevailing party in the civil action, the court 
                shall order the nonprevailing party to pay damages to 
                the prevailing party;
                    (F) the damages payable to such persons shall 
                include--
                            (i) the costs resulting from the delay 
                        caused by the civil action; and
                            (ii) lost profits from such delay; and
                    (G) provide that the prevailing party in a civil 
                action shall be entitled to recover reasonable 
                attorney's fees and court costs.
            (4) Procedures in federal circuit court.--No later than 60 
        days after the date of the enactment of this Act, the United 
        States Court of Appeals for the Federal Circuit shall adopt 
        procedures to provide for expedited considerations of civil 
        actions brought under this Act.

SEC. 1081. CLARIFICATION OF NATIONAL SECURITY SYSTEMS TO WHICH THE 
              INFORMATION TECHNOLOGY MANAGEMENT REFORM ACT OF 1996 
              APPLIES.

    Section 5142(b) of the Information Technology Management Reform Act 
of 1996 (division E of Public Law 104-106; 110 Stat. 689; 40 U.S.C. 
1452(b)) is amended--
            (1) by striking out ``(b) Limitation.--'' and inserting in 
        lieu thereof ``(b) Limitations.--(1)''; and
            (2) by adding at the end the following:
    ``(2) Notwithstanding any other provision of this section or any 
other provision of law, for the purposes of this subtitle, a system 
that, in function, operation, or use, involves the storage, processing, 
or forwarding of classified information and is protected at all times 
by procedures established for the handling of classified information 
shall be considered as a national security system under the definition 
in subsection (a) only if the function, operation, or use of the 
system--
            ``(A) involves activities described in paragraph (1), (2), 
        or (3) of subsection (a);
            ``(B) involves equipment described in paragraph (4) of 
        subsection (a); or
            ``(C) is critical to an objective described in paragraph 
        (5) of subsection (a) and is not excluded by paragraph (1) of 
        this subsection.''.

SEC. 1082. SALE OF CHEMICALS USED TO MANUFACTURE CONTROLLED SUBSTANCES 
              BY FEDERAL DEPARTMENTS OR AGENCIES.

    A Federal department or agency may not sell from the stocks of the 
department or agency any chemical which, as determined by the 
Administrator of the Drug Enforcement Agency, could be used in the 
manufacture of a controlled substance as defined in section 102 of the 
Controlled Substances Act (21 U.S.C. 802) unless the Administrator 
certifies in writing to the head of the department or agency that there 
is no reasonable cause to believe that the sale of the chemical would 
result in the illegal manufacture of a controlled substance.

SEC. 1083. OPERATIONAL SUPPORT AIRLIFT AIRCRAFT.

    (a) Status of Excess Aircraft.--Operational support airlift 
aircraft excess to the requirements of the Department of Defense shall 
be placed in an inactive status and stored at Davis-Monthan Air Force 
Base, Arizona, pending the completion of any study or analysis of the 
costs and benefits of disposing of or operating such aircraft that 
precedes a decision to dispose of or continue to operate such aircraft.
    (b) Operational Support Airlift Aircraft Defined.--In this section, 
the term ``operational support airlift aircraft'' has the meaning given 
such term in section 1086(f) of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 458).

SEC. 1084. SENSE OF SENATE REGARDING BOSNIA AND HERZEGOVINA.

    It is the sense of the Senate that, notwithstanding any other 
provision of law, in order to maximize the amount of equipment provided 
to the Government of Bosnia and Herzegovina under the authority 
contained in section 540 of the Foreign Operations Act of 1996 (Public 
Law 104-107), the price of the transferred equipment shall not exceed 
the lowest level at which the same or similar equipment has been 
transferred to any other country under any other United States 
Government program.

SEC. 1085. STRENGTHENING CERTAIN SANCTIONS AGAINST NUCLEAR 
              PROLIFERATION ACTIVITIES.

    (a) In General.--Section 2(b)(4) of the Export-Import Bank Act of 
1945 (12 U.S.C. 635(b)(4)) is amended--
            (1) by inserting after ``any country has willfully aided or 
        abetted'' the following: ``, or any person has knowingly aided 
        or abetted,'';
            (2) by striking ``or countries'' and inserting ``, 
        countries, person, or persons'';
            (3) by inserting after ``United States exports to such 
        country'' the following: ``or, in the case of any such person, 
        give approval to guarantee, insure, or extend credit, or 
        participate in the extension of credit in support of, exports 
        to or by any such person for a 12-month period,'';
            (4) by inserting ``(A)'' immediately after ``(4)'';
            (5) by inserting after ``United States exports to such 
        country'' the second place it appears the following: ``, except 
        as provided in subparagraph (B),''; and
            (6) by adding at the end the following:
    ``(B) In the case of any country or person aiding or abetting a 
non-nuclear-weapon state as described in subparagraph (A), the 
prohibition on financing by the Bank contained in the second sentence 
of that subparagraph shall not apply to the country or person, as the 
case may be, if the President determines and certifies in writing to 
the Congress that--
            ``(i) reliable information indicates that the country or 
        person with respect to which the determination is made has 
        ceased to aid or abet any non-nuclear-weapon state to acquire 
        any nuclear explosive device or to acquire unsafeguarded 
        special nuclear material; and
            ``(ii) the President has received reliable assurances from 
        the country or person that such country or person will not, in 
        the future, aid or abet any non-nuclear-weapon state in its 
        efforts to acquire any nuclear explosive device or any 
        unsafeguarded special nuclear material.
    ``(C) For purposes of subparagraphs (A) and (B)--
            ``(i) the term `country' has the meaning given to `foreign 
        state' in section 1603(a) of title 28, United States Code;
            ``(ii) the term `knowingly' is used within the meaning of 
        the term `knowing' in section 104 of the Foreign Corrupt 
        Practices Act; and
            ``(iii) the term `person' means a natural person as well as 
        a corporation, business association, partnership, society, 
        trust, any other nongovernmental entity, organization, or 
        group, and any governmental entity operating as a business 
        enterprise, and any successor of any such entity.''.
    (b) Effective Date.--(1) The amendments made by paragraphs (1) 
through (5) of subsection (a) shall apply to persons, and the amendment 
made by subsection (a)(6), shall apply to countries and persons, aiding 
or abetting non-nuclear weapon states on or after June 29, 1994.
    (2) Nothing in this section or the amendments made by this section 
shall apply to obligations undertaken pursuant to guarantees, 
insurance, and the extension of credits (and participation in the 
extension of credits) made before the date of enactment of this Act.

SEC. 1086. TECHNICAL AMENDMENT.

    Paragraph (3) of section 8003(a) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7703(a)) is amended--
            (1) by striking ``2000 and such number equals or exceeds 
        15'' and inserting ``1000 or such number equals or exceeds 
        10''; and
            (2) by inserting ``, except that notwithstanding any other 
        provision of this title the Secretary shall not make a payment 
        computed under this paragraph for a child described in 
        subparagraph (F) or (G) of paragraph (1) who is associated with 
        Federal property used for Department of Defense activities 
        unless funds for such payment are made available to the 
        Secretary from funds available to the Secretary of Defense'' 
        before the period.

SEC. 1087. FACILITY FOR MILITARY DEPENDENT CHILDREN WITH DISABILITIES, 
              LACKLAND AIR FORCE BASE, TEXAS.

    (a) Funding.--Of the amounts authorized to be appropriated by this 
Act for the Department of the Air Force, $2,000,000 may be available 
for the construction at Lackland Air Force Base, Texas, of a facility 
(and supporting infrastructure) to provide comprehensive care and 
rehabilitation services to children with disabilities who are 
dependents of members of the Armed Forces.
    (b) Transfer of Funds.--Subject to subsection (c), the Secretary of 
the Air Force may grant the funds available under subsection (a) to the 
Children's Association for Maximum Potential (CAMP) for use by the 
association to defray the costs of designing and constructing the 
facility referred to in subsection (a).
    (c) Lease of Facility.--(1) The Secretary may not make a grant of 
funds under subsection (b) until the Secretary and the association 
enter into an agreement under which the Secretary leases to the 
association the facility to be constructed using the funds.
    (2)(A) The term of the lease under paragraph (1) may not be less 
than 25 years.
    (B) As consideration for the lease of the facility, the association 
shall assume responsibility for the operation and maintenance of the 
facility, including the costs of such operation and maintenance.
    (3) The Secretary may require such additional terms and conditions 
in connection with the lease as the Secretary considers appropriate to 
protect the interests of the United States.

SEC. 1088. PROHIBITION ON THE DISTRIBUTION OF INFORMATION RELATING TO 
              EXPLOSIVE MATERIALS FOR A CRIMINAL PURPOSE.

    (a) Unlawful Conduct.--Section 842 of title 18, United States Code, 
is amended by adding at the end the following new subsection:
    ``(l) It shall be unlawful for any person to teach or demonstrate 
the making of explosive materials, or to distribute by any means 
information pertaining to, in whole or in part, the manufacture of 
explosive materials, if the person intends or knows, that such 
explosive materials or information will be used for, or in furtherance 
of, an activity that constitutes a Federal criminal offense or a 
criminal purpose affecting interstate commerce.''.
    (b) Penalty.--Section 844(a) of title 18, United States Code, is 
amended--
            (1) by striking ``(a) Any person'' and inserting ``(a)(1) 
        Any person''; and
            (2) by adding at the end the following:
    ``(2) Any person who violates subsection (l) of section 842 of this 
chapter shall be fined under this title, imprisoned not more than 20 
years, or both.''.

SEC. 1089. EXEMPTION FOR SAVINGS INSTITUTIONS SERVING MILITARY 
              PERSONNEL.

    Section 10(m)(3)(F) of the Home Owners' Loan Act (12 U.S.C. 
1467a(m)(3)(F)) is amended to read as follows:
                    ``(F) Exemption for specialized savings 
                associations serving certain military personnel.--
                Subparagraph (A) does not apply to a savings 
                association subsidiary of a savings and loan holding 
                company if not less than 90 percent of the customers of 
                the savings and loan holding company and the 
                subsidiaries and affiliates of such company are active 
                or former officers in the United States military 
                services or the widows, widowers, divorced spouses, or 
                current or former dependents of such officers.''.

          Subtitle G--Review of Armed Forces Force Structures

SEC. 1091. SHORT TITLE.

    This subtitle may be cited as the ``Armed Forces Force Structures 
Review Act of 1996''.

SEC. 1092. FINDINGS.

    Congress makes the following findings:
            (1) Since the collapse of the Soviet Union in 1991, the 
        United States has conducted two substantial assessments of the 
        force structure of the Armed Forces necessary to meet United 
        States defense requirements.
            (2) The assessment by the Bush Administration (known as the 
        ``Base Force'' assessment) and the assessment by the Clinton 
        Administration (known as the ``Bottom-Up Review'') were 
        intended to reassess the force structure of the Armed Forces in 
        light of the changing realities of the post-Cold War world.
            (3) Both assessments served an important purpose in 
        focusing attention on the need to reevaluate the military 
        posture of the United States, but the pace of global change 
        necessitates a new, comprehensive assessment of the defense 
        strategy of the United States and the force structure of the 
        Armed Forces required to meet the threats to the United States 
        in the 21st century.
            (4) The Bottom-Up Review has been criticized on several 
        points, including--
                    (A) the assumptions underlying the strategy of 
                planning to fight and win two nearly simultaneous major 
                regional conflicts;
                    (B) the force levels recommended to carry out that 
                strategy; and
                    (C) the funding proposed for such recommended force 
                levels.
            (5) In response to the recommendations of the Commission on 
        Roles and Missions of the Armed Forces, the Secretary of 
        Defense endorsed the concept of conducting a quadrennial review 
        of the defense program at the beginning of each newly elected 
        Presidential administration, and the Secretary intends to 
        complete the first such review in 1997.
            (6) The review is to involve a comprehensive examination of 
        defense strategy, the force structure of the active, guard, and 
        reserve components, force modernization plans, infrastructure, 
        and other elements of the defense program and policies in order 
        to determine and express the defense strategy of the United 
        States and to establish a revised defense program through the 
        year 2005.
            (7) In order to ensure that the force structure of the 
        Armed Forces is adequate to meet the challenges to the national 
        security interests of the United States in the 21st century, to 
        assist the Secretary of Defense in conducting the review 
        referred to in paragraph (5), and to assess the appropriate 
        force structure of the Armed Forces through the year 2010 and 
        beyond (if practicable), it is important to provide for the 
        conduct of an independent, non-partisan review of the force 
        structure that is more comprehensive than prior assessments of 
        the force structure, extends beyond the quadrennial defense 
        review, and explores innovative and forward-thinking ways of 
        meeting such challenges.

SEC. 1093. QUADRENNIAL DEFENSE REVIEW.

    (a) Requirement in 1997.--The Secretary of Defense, in consultation 
with the Chairman of the Joint Chiefs of Staff, shall complete in 1997 
a review of the defense program of the United States intended to 
satisfy the requirements for a Quadrennial Defense Review as identified 
in the recommendations of the Commission on Roles and Missions of the 
Armed Forces. The review shall include a comprehensive examination of 
the defense strategy, force structure, force modernization plans, 
infrastructure, and other elements of the defense program and policies 
with a view toward determining and expressing the defense strategy of 
the United States and establishing a revised defense program through 
the year 2005.
    (b) Involvement of National Defense Panel.--(1) The Secretary shall 
apprise the National Defense Panel established under section 1084, on 
an on-going basis, of the work undertaken in the conduct of the review.
    (2) Not later than March 14, 1997, the Chairman of the National 
Defense Panel shall submit to the Secretary the Panel's assessment of 
work undertaken in the conduct of the review as of that date and shall 
include in the assessment the recommendations of the Panel for 
improvements to the review, including recommendations for additional 
matters to be covered in the review.
    (c) Assessments of Review.--Upon completion of the review, the 
Chairman of the Joint Chiefs of Staff and the Chairman of the National 
Defense Panel shall each prepare and submit to the Secretary such 
chairman's assessment of the review in time for the inclusion of the 
assessment in its entirety in the report under subsection (d).
    (d) Report.--Not later than May 15, 1997, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a 
comprehensive report on the review. The report shall include the 
following:
            (1) The results of the review, including a comprehensive 
        discussion of the defense strategy of the United States and the 
        force structure best suited to implement the strategy.
            (2) The threats examined for purposes of the review and the 
        scenarios developed in the examination of such threats.
            (3) The assumptions used in the review, including 
        assumptions relating to the cooperation of allies and mission-
        sharing, levels of acceptable risk, warning times, and 
        intensity and duration of conflict.
            (4) The effect on the force structure of preparations for 
        and participation in peace operations and military operations 
        other than war.
            (5) The effect on the force structure of the utilization by 
        the Armed Forces of technologies anticipated to be available by 
        the year 2005, including precision guided munitions, stealth, 
        night vision, digitization, and communications, and the changes 
        in doctrine and operational concepts that would result from the 
        utilization of such technologies.
            (6) The manpower and sustainment policies required under 
        the defense strategy to support engagement in conflicts lasting 
        more than 120 days.
            (7) The anticipated roles and missions of the reserve 
        components in the defense strategy and the strength, 
        capabilities, and equipment necessary to assure that the 
        reserve components can capably discharge such roles and 
        missions.
            (8) The appropriate ratio of combat forces to support 
        forces (commonly referred to as the ``tooth-to-tail'' ratio) 
        under the defense strategy, including, in particular, the 
        appropriate number and size of headquarter units and Defense 
        Agencies for that purpose.
            (9) The air-lift and sea-lift capabilities required to 
        support the defense strategy.
            (10) The forward presence, pre-positioning, and other 
        anticipatory deployments necessary under the defense strategy 
        for conflict deterrence and adequate military response to 
        anticipated conflicts.
            (11) The extent to which resources must be shifted among 
        two or more theaters under the defense strategy in the event of 
        conflict in such theaters.
            (12) The advisability of revisions to the Unified Command 
        Plan as a result of the defense strategy.

SEC. 1094. NATIONAL DEFENSE PANEL.

    (a) Establishment.--Not later than December 1, 1996, the Secretary 
of Defense shall establish a non-partisan, independent panel to be 
known as the National Defense Panel (in this section referred to as the 
``Panel''). The Panel shall have the duties set forth in this section.
    (b) Membership.--The Panel shall be composed of a chairman and 
eight other individuals appointed by the Secretary, in consultation 
with the Chairman and ranking member of the Committee on Armed Services 
of the Senate and the Chairman and ranking member of the Committee on 
National Security of the House of Representatives, from among 
individuals in the private sector who are recognized experts in matters 
relating to the national security of the United States.
    (c) Duties.--The Panel shall--
            (1) conduct and submit to the Secretary the assessment of 
        the review under section 1083 that is required by subsection 
        (b)(2) of that section;
            (2) conduct and submit to the Secretary the comprehensive 
        assessment of the review that is required by subsection (c) of 
        that section upon completion of the review; and
            (3) conduct the assessment of alternative force structures 
        for the Armed Forces required under subsection (d).
    (d) Alternative Force Structure Assessment.--(1) The Panel shall 
submit to the Secretary an independent assessment of a variety of 
possible force structures of the Armed Forces through the year 2010 and 
beyond, including the force structure identified in the report on the 
review under section 1083(d). The purpose of the assessment is to 
develop proposals for an ``above the line'' force structure of the 
Armed Forces and to provide the Secretary and Congress recommendations 
regarding the optimal force structure to meet anticipated threats to 
the national security of the United States through the time covered by 
the assessment.
    (2) In conducting the assessment, the Panel shall examine a variety 
of potential threats (including near-term threats and long-term 
threats) to the national security interests of the United States, 
including the following:
            (A) Conventional threats across a spectrum of conflicts.
            (B) The proliferation of weapons of mass destruction and 
        the means of delivering such weapons, and the illicit transfer 
        of technology relating to such weapons.
            (C) The vulnerability of United States technology to non-
        traditional threats, including information warfare.
            (D) Domestic and international terrorism.
            (E) The emergence of a major challenger having military 
        capabilities similar to those of the United States.
            (F) Any other significant threat, or combination of 
        threats, identified by the Panel.
    (3) For purposes of the assessment, the Panel shall develop a 
variety of scenarios requiring a military response by the Armed Forces, 
including the following:
            (A) Scenarios developed in light of the threats examined 
        under paragraph (2).
            (B) Scenarios developed in light of a continuum of 
        conflicts ranging from a conflict of lesser magnitude than the 
        conflict described in the Bottom-Up Review to a conflict of 
        greater magnitude than the conflict so described.
    (4) As part of the assessment, the Panel shall also--
            (A) develop recommendations regarding a variety of force 
        structures for the Armed Forces that permit the forward 
        deployment of sufficient land- and sea-based forces to provide 
        an effective deterrent to conflict and to permit a military 
        response by the United States to the scenarios developed under 
        paragraph (3);
            (B) to the extent practicable, estimate the funding 
        required by fiscal year, in constant fiscal year 1997 dollars, 
        to organize, equip, and support the forces contemplated under 
        the force structures assessed in the assessment; and
            (C) comment on each of the matters also to be included by 
        the Secretary in the report required by section 1083(d).
    (e) Report.--(1) Not later than December 1, 1997, the Panel shall 
submit to the Secretary a report setting forth the activities, findings 
and recommendations of the Panel under subsection (d), including any 
recommendations for legislation that the Panel considers appropriate.
    (2) Not later than December 15, 1997, the Secretary shall, after 
consultation with the Chairman of the Joint Chiefs of Staff, submit to 
the committees referred to in subsection (b)(1) a copy of the report 
under paragraph (1), together with the Secretary's comments on the 
report.
    (f) Information from Federal Agencies.--The Panel may secure 
directly from the Department of Defense and any of its components and 
from any other Federal department and agency such information as the 
Panel considers necessary to carry out its duties under this section. 
The head of the department or agency concerned shall ensure that 
information requested by the Panel under this subsection is promptly 
provided.
    (g) Personnel Matters.--(1) Each member of the Panel shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which such member is engaged in the performance of 
the duties of the Panel.
    (2) The members of the Panel shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the Panel.
    (3)(A) The chairman of the Panel may, without regard to the civil 
service laws and regulations, appoint and terminate an executive 
director, and a staff of not more than four additional individuals, if 
the Panel determines that an executive director and staff are necessary 
in order for the Panel to perform its duties effectively. The 
employment of an executive director shall be subject to confirmation by 
the Panel.
    (B) The chairman may fix the compensation of the executive director 
without regard to the provisions of chapter 51 and subchapter III of 
chapter 53 of title 5, United States Code, relating to classification 
of positions and General Schedule pay rates, except that the rate of 
pay for the executive director may not exceed the rate payable for 
level V of the Executive Schedule under section 5316 of such title.
    (4) Any Federal Government employee may be detailed to the Panel 
without reimbursement, and such detail shall be without interruption or 
loss of civil service status or privilege. The Secretary shall ensure 
that sufficient personnel are detailed to the Panel to enable the Panel 
to carry out its duties effectively.
    (5) To the maximum extent practicable, the members and employees of 
the Panel shall travel on military aircraft, military ships, military 
vehicles, or other military conveyances when travel is necessary in the 
performance of a duty of the Panel, except that no such aircraft, ship, 
vehicle, or other conveyance may be scheduled primarily for the 
transportation of any such member or employee when the cost of 
commercial transportation is less expensive.
    (h) Administrative Provisions.--(1) The Panel may use the United 
States mails and obtain printing and binding services in the same 
manner and under the same conditions as other departments and agencies 
of the Federal Government.
    (2) The Secretary shall furnish the Panel any administrative and 
support services requested by the Panel.
    (3) The Panel may accept, use, and dispose of gifts or donations of 
services or property.
    (i) Payment of Panel Expenses.--The compensation, travel expenses, 
and per diem allowances of members and employees of the Panel shall be 
paid out of funds available to the Department of Defense for the 
payment of compensation, travel allowances, and per diem allowances, 
respectively, of civilian employees of the Department. The other 
expenses of the Panel shall be paid out of funds available to the 
Department for the payment of similar expenses incurred by the 
Department.
    (j) Termination.--The Panel shall terminate 30 days after the date 
on which the Panel submits its report to the Secretary under subsection 
(e).

SEC. 1095. POSTPONEMENT OF DEADLINES.

    In the event that the election of President of the United States in 
1996 results in a change in administrations, each deadline set forth in 
this subtitle shall be postponed by 3 months.

SEC. 1096. DEFINITIONS.

    In this subtitle:
            (1) The term ```above the line' force structure of the 
        Armed Forces'' means a force structure (including numbers, 
        strengths, and composition and major items of equipment) for 
        the Armed Forces at the following unit levels:
                    (A) In the case of the Army, the division.
                    (B) In the case of the Navy, the battle group.
                    (C) In the case of the Air Force, the wing.
                    (D) In the case of the Marine Corps, the 
                expeditionary force.
                    (E) In the case of special operations forces of the 
                Army, Navy, or Air Force, the major operating unit.
                    (F) In the case of the strategic forces, the 
                ballistic missile submarine fleet, the heavy bomber 
                force, and the intercontinental ballistic missile 
                force.
            (2) The term ``Commission on Roles and Missions of the 
        Armed Forces'' means the Commission on Roles and Missions of 
        the Armed Forces established by subtitle E of title IX of the 
        National Defense Authorization Act for Fiscal Year 1994 (Public 
        Law 103-160; 107 Stat. 1738; 10 U.S.C. 111 note).
            (3) The term ``military operation other than war'' means 
        any operation other than war that requires the utilization of 
        the military capabilities of the Armed Forces, including peace 
        operations, humanitarian assistance operations and activities, 
        counter-terrorism operations and activities, disaster relief 
        activities, and counter-drug operations and activities.
            (4) The term ``peace operations'' means military operations 
        in support of diplomatic efforts to reach long-term political 
        settlements of conflicts and includes peacekeeping operations 
        and peace enforcement operations.

           TITLE 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 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) 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.

               Subtitle C--Defense Intelligence Personnel

SEC. 1131. SHORT TITLE.

    This subtitle may be cited as the ``Department of Defense Civilian 
Intelligence Personnel Reform Act of 1996''.

 SEC. 1132. CIVILIAN INTELLIGENCE PERSONNEL MANAGEMENT.

    Section 1590 of title 10, United States Code, is amended to read as 
follows:
``Sec. 1590. Management of civilian intelligence personnel of the 
              Department of Defense
    ``(a) General Personnel Management Authority.--The Secretary of 
Defense may, without regard to the provisions of any other law relating 
to the appointment, number, classification, or compensation of 
employees--
            ``(1) establish--
                    ``(A) as positions in the excepted service, such 
                defense intelligence component positions (including 
                Intelligence Senior Level positions) as the Secretary 
                determines necessary to carry out the intelligence 
                functions of the defense intelligence components, but 
                not to exceed in number the number of the defense 
                intelligence component positions established as of 
                January 1, 1996; and
                    ``(B) such Intelligence Senior Executive Service 
                positions as the Secretary determines necessary to 
                carry out functions referred to in subparagraph (B);
            ``(2) appoint individuals to such positions (after taking 
        into consideration the availability of preference eligibles for 
        appointment to such positions); and
            ``(3) fix the compensation of such individuals for service 
        in such positions.
    ``(b) Basic Pay.--(1)(A) Subject to subparagraph (B) and paragraph 
(2), the Secretary of Defense shall 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 subpart which have corresponding levels of duties and 
responsibilities.
    ``(B) Except as otherwise provided by law, no rate of basic pay 
fixed under subparagraph (A) for a position established under 
subsection (a) may exceed--
            ``(i) in the case of an Intelligence Senior Executive 
        Service position, the maximum rate provided in section 5382 of 
        title 5;
            ``(ii) in the case of an Intelligence Senior Level 
        position, the maximum rate provided in section 5382 of title 5; 
        and
            ``(iii) in the case of any other defense intelligence 
        component position, the maximum rate provided in section 
        5306(e) of title 5.
    ``(2) The Secretary of Defense may, consistent with section 5341 of 
title 5, adopt such provisions of that title as provide for prevailing 
rate systems of basic pay and may apply those provisions to positions 
for civilian employees in or under which the Department of Defense may 
employ individuals described by section 5342(a)(2)(A) of such title.
    ``(c) Additional Compensation, Incentives, and Allowances.--(1) 
Employees in defense intelligence component positions may be paid 
additional compensation, including benefits, incentives, and 
allowances, in accordance with this subsection if, and to the extent, 
authorized in regulations prescribed by the Secretary of Defense.
    ``(2) Additional compensation under this subsection shall be 
consistent with, and not in excess of the levels authorized for, 
comparable positions authorized by title 5.
    ``(3)(A) Employees in defense intelligence component positions, if 
citizens or nationals of the United States, may be paid an allowance 
while stationed outside the continental United States or in Alaska.
    ``(B) Subject to subparagraph (C), allowances under subparagraph 
(A) shall be based on--
            ``(i) living costs substantially higher than in the 
        District of Columbia;
            ``(ii) conditions of environment which differ substantially 
        from conditions of environment in the continental United States 
        and warrant an allowance as a recruitment incentive; or
            ``(iii) both of the factors described in clauses (i) and 
        (ii).
    ``(C) An allowance under subparagraph (A) may not exceed an 
allowance authorized to be paid by section 5941(a) of title 5 for 
employees whose rates of basic pay are fixed by statute.
    ``(d) Intelligence Senior Executive Service.--(1) The Secretary of 
Defense may establish an Intelligence Senior Executive Service for 
defense intelligence component positions established pursuant to 
subsection (a) that are equivalent to Senior Executive Service 
positions.
    ``(2) The Secretary of Defense shall prescribe regulations for the 
Intelligence Senior Executive Service which are consistent with the 
requirements set forth in sections 3131, 3132(a)(2), 3396(c), 3592, 
3595(a), 5384, and 6304 of title 5, subsections (a), (b), and (c) of 
section 7543 of such title (except that any hearing or appeal to which 
a member of the Intelligence Senior Executive Service is entitled shall 
be held or decided pursuant to the regulations), and subchapter II of 
chapter 43 of such title. To the extent that the Secretary determines 
it practicable to apply to members of, or applicants for, the 
Intelligence Senior Executive Service other provisions of title 5 that 
apply to members of, or applicants for, the Senior Executive Service, 
the Secretary shall also prescribe regulations to implement those 
sections with respect to the Intelligence Senior Executive Service.
    ``(e) Award of Rank to Members of the Intelligence Senior Executive 
Service.--The President, based on the recommendations of the Secretary 
of Defense, may award a rank referred to in section 4507 of title 5 to 
members of the Intelligence Senior Executive Service whose positions 
may be established pursuant to this section. The awarding of such rank 
shall be made in a manner consistent with the provisions of that 
section.
    ``(f) Intelligence Senior Level Positions.--The Secretary of 
Defense may, in accordance with regulations prescribed by the 
Secretary, designate as an Intelligence Senior Level position any 
defense intelligence component position that, as determined by the 
Secretary--
            ``(1) is classifiable above grade GS-15 of the General 
        Schedule;
            ``(2) does not satisfy functional or program management 
        criteria for being designated an Intelligence Senior Executive 
        Service position; and
            ``(3) has no more than minimal supervisory 
        responsibilities.
    ``(g) Time Limited Appointments.--(1) The Secretary of Defense may, 
in regulations, authorize appointing officials to make time limited 
appointments to defense intelligence component positions specified in 
the regulations.
    ``(2) The Secretary of Defense shall review each time limited 
appointment in a defense intelligence component position at the end of 
the first year of the period of the appointment and determine whether 
the appointment should be continued for the remainder of the period. 
The continuation of a time limited appointment after the first year 
shall be subject to the approval of the Secretary.
    ``(3) An employee serving in a defense intelligence component 
position pursuant to a time limited appointment is not eligible for a 
permanent appointment to an Intelligence Senior Executive Service 
position (including a position in which serving) unless selected for 
the permanent appointment on a competitive basis.
    ``(4) In this subsection, the term `time limited appointment' means 
an appointment (subject to the condition in paragraph (2)) for a period 
not to exceed two years.
    ``(h) Termination of Civilian Intelligence Employees.--(1) 
Notwithstanding any other provision of law, the Secretary of Defense 
may terminate the employment of any employee in a defense intelligence 
component position 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 head of a defense intelligence component (with respect to employees 
of that component). An action to terminate employment of such an 
employee by any such official may be appealed to the Secretary of 
Defense.
    ``(i) Reductions and Other Adjustments in Force.--(1) The Secretary 
of Defense, in consultation with the Director of the Office of 
Personnel Management, shall prescribe regulations for the separation of 
employees in defense intelligence component positions, including 
members of the Intelligence Senior Executive Service and employees in 
Intelligence Senior Level positions, in a reduction in force or other 
adjustment in force. The regulations shall apply to such a reduction in 
force or other adjustment in force notwithstanding sections 3501(b) and 
3502 of title 5.
    ``(2) The regulations shall give effect to--
            ``(A) tenure of employment;
            ``(B) military preference, subject to sections 3501(a)(3) 
        and 3502(b) of title 5;
            ``(C) the veteran's preference under section 3502(b) of 
        title 5;
            ``(D) performance; and
            ``(E) length of service computed in accordance with the 
        second sentence of section 3502(a) of title 5.
    ``(2) The regulations relating to removal from the Intelligence 
Senior Executive Service in a reduction in force or other adjustment in 
force shall be consistent with section 3595(a) of title 5.
    ``(3)(A) The regulations shall provide a right of appeal regarding 
a personnel action under the regulations. The appeal shall be 
determined within the Department of Defense. An appeal determined at 
the highest level provided in the regulations shall be final and not 
subject to review outside the Department of Defense. A personnel action 
covered by the regulations is not subject to any other provision of law 
that provides appellate rights or procedures.
    ``(B) Notwithstanding subparagraph (A), a preference eligible 
referred to in section 7511(a)(1)(B) of title 5 may appeal to the Merit 
Systems Protection Board any personnel action taken under the 
regulations. Section 7701 of title 5 shall apply to any such appeal.
    ``(j) Applicability of Merit System Principles.--Section 2301 of 
title 5 shall apply to the exercise of authority under this section.
    ``(k) Collective Bargaining Agreements.--Nothing in this section 
may be construed to impair the continued effectiveness of a collective 
bargaining agreement with respect to an agency or office that is a 
successor to an agency or office covered by the agreement before the 
succession.
    ``(l) Notification of Congress.--At least 60 days before the 
effective date of regulations prescribed to carry out this section, the 
Secretary of Defense shall submit the regulations to 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.
    ``(m) Definitions.--In this section:
            ``(1) The term `defense intelligence component position' 
        means a position of civilian employment as an intelligence 
        officer or employee of a defense intelligence component.
            ``(2) The term `defense intelligence component' means each 
        of the following components of the Department of Defense:
                    ``(A) The National Security Agency.
                    ``(B) The Defense Intelligence Agency.
                    ``(C) The Central Imagery Office.
                    ``(D) Any component of a military department that 
                performs intelligence functions and is designated as a 
                defense intelligence component by the Secretary of 
                Defense.
                    ``(E) Any other component of the Department of 
                Defense that performs intelligence functions and is 
                designated as a defense intelligence component by the 
                Secretary of Defense.
                    ``(F) Any successor to a component listed in, or 
                designated pursuant to, this paragraph.
            ``(3) The term `Intelligence Senior Level position' means a 
        defense intelligence component position designated as an 
        Intelligence Senior Level position pursuant to subsection (f).
            ``(4) The term `excepted service' has the meaning given 
        such term in section 2103 of title 5.
            ``(5) The term `preference eligible' has the meaning given 
        such term in section 2108(3) of title 5.
            ``(6) The term `Senior Executive Service position' has the 
        meaning given such term in section 3132(a)(2) of title 5.
            ``(7) The term `collective bargaining agreement' has the 
        meaning given such term in section 7103(8) of title 5.''.

SEC. 1133. REPEALS.

    (a) Defense Intelligence Senior Executive Service.--Sections 1601, 
1603, and 1604 of title 10, United States Code, are repealed. 
    (b) National Security Agency Personnel Management Authorities.--(1) 
Sections 2 and 4 of the National Security Agency Act of 1959 (50 U.S.C. 
402 note) are repealed.
    (2) Section 303 of the Internal Security Act of 1950 (50 U.S.C. 
833) is repealed.

SEC. 1134. CLERICAL AMENDMENTS.

    (a) Amended Section Heading.--The item relating to section 1590 in 
the table of sections at the beginning of chapter 81 of title 10, 
United States Code, is amended to read as follows:

``1590. Management of civilian intelligence personnel of the Department 
                            of Defense.''.
    (b) Repealed Sections.--The table of sections at the beginning of 
chapter 83 of title 10, United States Code, is amended by striking out 
the items relating to sections 1601, 1603, and 1604.

      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.

        TITLE XIII--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

SEC. 1301. SHORT TITLE.

    This title may be cited as the ``Defense Against Weapons of Mass 
Destruction Act of 1996''.

SEC. 1302. FINDINGS.

    Congress makes the following findings:
            (1) Weapons of mass destruction and related materials and 
        technologies are increasingly available from worldwide sources. 
        Technical information relating to such weapons is readily 
        available on the Internet, and raw materials for chemical, 
        biological, and radiological weapons are widely available for 
        legitimate commercial purposes.
            (2) The former Soviet Union produced and maintained a vast 
        array of nuclear, biological, and chemical weapons of mass 
        destruction.
            (3) Many of the states of the former Soviet Union retain 
        the facilities, materials, and technologies capable of 
        producing additional quantities of weapons of mass destruction.
            (4) The disintegration of the former Soviet Union was 
        accompanied by disruptions of command and control systems, 
        deficiencies in accountability for weapons, weapons-related 
        materials and technologies, economic hardships, and significant 
        gaps in border control among the states of the former Soviet 
        Union. The problems of organized crime and corruption in the 
        states of the former Soviet Union increase the potential for 
        proliferation of nuclear, radiological, biological, and 
        chemical weapons and related materials.
            (5) The conditions described in paragraph (4) have 
        substantially increased the ability of potentially hostile 
        nations, terrorist groups, and individuals to acquire weapons 
        of mass destruction and related materials and technologies from 
        within the states of the former Soviet Union and from 
        unemployed scientists who worked on those programs.
            (6) As a result of such conditions, the capability of 
        potentially hostile nations and terrorist groups to acquire 
        nuclear, radiological, biological, and chemical weapons is 
        greater than any time in history.
            (7) The President has identified North Korea, Iraq, Iran, 
        and Libya as hostile states which already possess some weapons 
        of mass destruction and are developing others.
            (8) The acquisition or the development and use of weapons 
        of mass destruction is well within the capability of many 
        extremist and terrorist movements, acting independently or as 
        proxies for foreign states.
            (9) Foreign states can transfer weapons to or otherwise aid 
        extremist and terrorist movements indirectly and with plausible 
        deniability.
            (10) Terrorist groups have already conducted chemical 
        attacks against civilian targets in the United States and 
        Japan, and a radiological attack in Russia.
            (11) The potential for the national security of the United 
        States to be threatened by nuclear, radiological, chemical, or 
        biological terrorism must be taken as seriously as the risk of 
        an attack by long-range ballistic missiles carrying nuclear 
        weapons.
            (12) There is a significant and growing threat of attack by 
        weapons of mass destruction on targets that are not military 
        targets in the usual sense of the term.
            (13) Concomitantly, the threat posed to the citizens of the 
        United States by nuclear, radiological, biological, and 
        chemical weapons delivered by unconventional means is 
        significant and growing.
            (14) Mass terror may result from terrorist incidents 
        involving nuclear, radiological, biological, or chemical 
        materials, even if such materials are not configured as 
        military weapons.
            (15) Facilities required for production of radiological, 
        biological, and chemical weapons are much smaller and harder to 
        detect than nuclear weapons facilities, and biological, and 
        chemical weapons can be deployed by alternative delivery means 
        that are much harder to detect than long-range ballistic 
        missiles.
            (16) Such delivery systems have no assignment of 
        responsibility, unlike ballistic missiles, for which a launch 
        location would be unambiguously known.
            (17) Covert or unconventional means of delivery of nuclear, 
        radiological, biological, and chemical weapons, which might be 
        preferable to foreign states and nonstate organizations, 
        include cargo ships, passenger aircraft, commercial and private 
        vehicles and vessels, and commercial cargo shipments routed 
        through multiple destinations.
            (18) Traditional arms control efforts assume large state 
        efforts with detectable manufacturing programs and weapons 
        production programs, but are ineffective in monitoring and 
        controlling smaller, though potentially more dangerous, 
        unconventional proliferation efforts.
            (19) Conventional counterproliferation efforts would do 
        little to detect or prevent the rapid development of a 
        capability to suddenly manufacture several hundred chemical or 
        biological weapons with nothing but commercial supplies and 
        equipment.
            (20) The United States lacks adequate planning and 
        countermeasures to address the threat of nuclear, radiological, 
        biological, and chemical terrorism.
            (21) The Department of Energy has established a Nuclear 
        Emergency Response Team which is available in case of nuclear 
        or radiological emergencies, but no comparable units exist to 
        deal with emergencies involving biological, or chemical weapons 
        or related materials.
            (22) State and local emergency response personnel are not 
        adequately prepared or trained for incidents involving nuclear, 
        radiological, biological, or chemical materials.
            (23) Exercises of the Federal, State, and local response to 
        nuclear, radiological, biological, or chemical terrorism have 
        revealed serious deficiencies in preparedness and severe 
        problems of coordination.
            (24) The development of, and allocation of responsibilities 
        for, effective countermeasures to nuclear, radiological, 
        biological, or chemical terrorism in the United States requires 
        well-coordinated participation of many Federal agencies, and 
        careful planning by the Federal Government and State and local 
        governments.
            (25) Training and exercises can significantly improve the 
        preparedness of State and local emergency response personnel 
        for emergencies involving nuclear, radiological, biological, or 
        chemical weapons or related materials.
            (26) Sharing of the expertise and capabilities of the 
        Department of Defense, which traditionally has provided 
        assistance to Federal, State, and local officials in 
        neutralizing, dismantling, and disposing of explosive ordnance, 
        as well as radiological, biological, and chemical materials, 
        can be a vital contribution to the development and deployment 
        of countermeasures against nuclear, biological, and chemical 
        weapons of mass destruction.
            (27) The United States lacks effective policy coordination 
        regarding the threat posed by the proliferation of weapons of 
        mass destruction.

SEC. 1303. DEFINITIONS.

    In this title:
            (1) The term ``weapon of mass destruction'' means any 
        weapon or device that is intended, or has the capability, to 
        cause death or serious bodily injury to a significant number of 
        people through the release, dissemination, or impact of--
                    (A) toxic or poisonous chemicals or their 
                precursors;
                    (B) a disease organism; or
                    (C) radiation or radioactivity.
            (2) The term ``independent states of the former Soviet 
        Union'' has the meaning given the term in section 3 of the 
        FREEDOM Support Act (22 U.S.C. 5801).
            (3) The term ``highly enriched uranium'' means uranium 
        enriched to 20 percent or more in the isotope U-235.

                   Subtitle A--Domestic Preparedness

SEC. 1311. EMERGENCY RESPONSE ASSISTANCE PROGRAM.

    (a) Program Required.--(1) The Secretary of Defense shall carry out 
a program to provide civilian personnel of Federal, State, and local 
agencies with training and expert advice regarding emergency responses 
to a use or threatened use of a weapon of mass destruction or related 
materials.
    (2) The President may designate the head of an agency other than 
the Department of Defense to assume the responsibility for carrying out 
the program on or after October 1, 1999, and relieve the Secretary of 
Defense of that responsibility upon the assumption of the 
responsibility by the designated official.
    (3) Hereafter in this section, the official responsible for 
carrying out the program is referred to as the ``lead official''.
    (b) Coordination.--In carrying out the program, the lead official 
shall coordinate with each of the following officials who is not 
serving as the lead official:
            (1) The Director of the Federal Emergency Management 
        Agency.
            (2) The Secretary of Energy.
            (3) The Secretary of Defense.
            (4) The heads of any other Federal, State, and local 
        government agencies that have an expertise or responsibilities 
        relevant to emergency responses described in subsection (a)(1).
    (c) Eligible Participants.--The civilian personnel eligible to 
receive assistance under the program are civilian personnel of Federal, 
State, and local agencies who have emergency preparedness 
responsibilities.
    (d) Involvement of Other Federal Agencies.--(1) The lead official 
may use personnel and capabilities of Federal agencies outside the 
agency of the lead official to provide training and expert advice under 
the program.
    (2)(A) Personnel used under paragraph (1) shall be personnel who 
have special skills relevant to the particular assistance that the 
personnel are to provide.
    (B) Capabilities used under paragraph (1) shall be capabilities 
that are especially relevant to the particular assistance for which the 
capabilities are used.
    (e) Available Assistance.--Assistance available under this program 
shall include the following:
            (1) Training in the use, operation, and maintenance of 
        equipment for--
                    (A) detecting a chemical or biological agent or 
                nuclear radiation;
                    (B) monitoring the presence of such an agent or 
                radiation;
                    (C) protecting emergency personnel and the public; 
                and
                    (D) decontamination.
            (2) Establishment of a designated telephonic link (commonly 
        referred to as a ``hot line'') to a designated source of 
        relevant data and expert advice for the use of State or local 
        officials responding to emergencies involving a weapon of mass 
        destruction or related materials.
            (3) Use of the National Guard and other reserve components 
        for purposes authorized under this section that are specified 
        by the lead official (with the concurrence of the Secretary of 
        Defense if the Secretary is not the lead official).
            (4) Loan of appropriate equipment.
    (f) Limitations on Department of Defense Assistance to Law 
Enforcement Agencies.--Assistance provided by the Department of Defense 
to law enforcement agencies under this section shall be provided under 
the authority of, and subject to the restrictions provided in, chapter 
18 of title 10, United States Code.
    (g) Administration of Department of Defense Assistance.--The 
Secretary of Defense shall designate an official within the Department 
of Defense to serve as the executive agent of the Secretary for the 
coordination of the provision of Department of Defense assistance under 
this section.
    (h) Funding.--(1) Of the total amount authorized to be appropriated 
under section 301, $35,000,000 is available for the program required 
under this section.
    (2) Of the amount available for the program pursuant to paragraph 
(1), $10,500,000 is available for use by the Secretary of Defense to 
assist the Surgeon General of the United States in the establishment of 
metropolitan emergency medical response teams (commonly referred to as 
``Metropolitan Medical Strike Force Teams'') to provide medical 
services that are necessary or potentially necessary by reason of a use 
or threatened use of a weapon of mass destruction.
    (3) The amount available for the program under paragraph (1) is in 
addition to any other amounts authorized to be appropriated for the 
program under section 301.

SEC. 1312. NUCLEAR, CHEMICAL, AND BIOLOGICAL EMERGENCY RESPONSE.

    (a) Department of Defense.--The Secretary of Defense shall 
designate an official within the Department of Defense as the executive 
agent for--
            (1) the coordination of Department of Defense assistance to 
        Federal, State, and local officials in responding to threats 
        involving biological or chemical weapons or related materials 
        or technologies, including assistance in identifying, 
        neutralizing, dismantling, and disposing of biological and 
        chemical weapons and related materials and technologies; and
            (2) the coordination of Department of Defense assistance to 
        the Department of Energy in carrying out that department's 
        responsibilities under subsection (b).
    (b) Department of Energy.--The Secretary of Energy shall designate 
an official within the Department of Energy as the executive agent 
for--
            (1) the coordination of Department of Energy assistance to 
        Federal, State, and local officials in responding to threats 
        involving nuclear weapons or related materials or technologies, 
        including assistance in identifying, neutralizing, dismantling, 
        and disposing of nuclear weapons and related materials and 
        technologies; and
            (2) the coordination of Department of Energy assistance to 
        the Department of Defense in carrying out that department's 
        responsibilities under subsection (a).
    (c) Funding.--(1)(A) Of the total amount authorized to be 
appropriated under section 301, $15,000,000 is available for providing 
assistance described in subsection (a).
    (B) The amount available under subparagraph (A) for providing 
assistance described in subsection (a) is in addition to any other 
amounts authorized to be appropriated under section 301 for that 
purpose.
    (2)(A) Of the total amount authorized to be appropriated under 
title XXXI, $15,000,000 is available for providing assistance described 
in subsection (b).
    (B) The amount available under subparagraph (A) for providing 
assistance is in addition to any other amounts authorized to be 
appropriated under title XXXI for that purpose.

SEC. 1313. MILITARY ASSISTANCE TO CIVILIAN LAW ENFORCEMENT OFFICIALS IN 
              EMERGENCY SITUATIONS INVOLVING BIOLOGICAL OR CHEMICAL 
              WEAPONS.

    (a) Assistance Authorized.--(1) The chapter 18 of title 10, United 
States Code, is amended by adding at the end the following:
``Sec. 382. Emergency situations involving chemical or biological 
              weapons of mass destruction
    ``(a) In General.--The Secretary of Defense, upon the request of 
the Attorney General, may provide assistance in support of Department 
of Justice activities relating to the enforcement of section 175 or 
2332c of title 18 during an emergency situation involving a biological 
or chemical weapon of mass destruction. Department of Defense 
resources, including personnel of the Department of Defense, may be 
used to provide such assistance if--
            ``(1) the Secretary of Defense and the Attorney General 
        jointly determine that an emergency situation exists; and
            ``(2) the Secretary of Defense determines that the 
        provision of such assistance will not adversely affect the 
        military preparedness of the United States.
    ``(b) Emergency Situations Covered.--As used in this section, the 
term `emergency situation involving a biological or chemical weapon of 
mass destruction' means a circumstance involving a biological or 
chemical weapon of mass destruction--
            ``(1) that poses a serious threat to the interests of the 
        United States; and
            ``(2) in which--
                    ``(A) civilian expertise and capabilities are not 
                readily available to provide the required assistance to 
                counter the threat immediately posed by the weapon 
                involved;
                    ``(B) special capabilities and expertise of the 
                Department of Defense are necessary and critical to 
                counter the threat posed by the weapon involved; and
                    ``(C) enforcement of section 175 or 2332c of title 
                18 would be seriously impaired if the Department of 
                Defense assistance were not provided.
    ``(c) Forms of Assistance.--The assistance referred to in 
subsection (a) includes the operation of equipment (including equipment 
made available under section 372 of this title) to monitor, contain, 
disable, or dispose of the weapon involved or elements of the weapon.
    ``(d) Regulations.--(1) The Secretary of Defense and the Attorney 
General shall jointly issue regulations concerning the types of 
assistance that may be provided under this section. Such regulations 
shall also describe the actions that Department of Defense personnel 
may take in circumstances incident to the provision of assistance under 
this section.
    ``(2)(A) Except as provided in subparagraph (B), the regulations 
may not authorize the following actions:
            ``(i) Arrest.
            ``(ii) Any direct participation in conducting a search for 
        or seizure of evidence related to a violation of section 175 or 
        2332c of title 18.
            ``(iii) Any direct participation in the collection of 
        intelligence for law enforcement purposes.
    ``(B) The regulations may authorize an action described in 
subparagraph (A) to be taken under the following conditions:
            ``(i) The action is considered necessary for the immediate 
        protection of human life, and civilian law enforcement 
        officials are not capable of taking the action.
            ``(ii) The action is otherwise authorized under subsection 
        (c) or under otherwise applicable law.
    ``(e) Reimbursements.--The Secretary of Defense shall require 
reimbursement as a condition for providing assistance under this 
section to the extent required under section 377 of this title.
    ``(f) Delegations of Authority.--(1) Except to the extent otherwise 
provided by the Secretary of Defense, the Deputy Secretary of Defense 
may exercise the authority of the Secretary of Defense under this 
section. The Secretary of Defense may delegate the Secretary's 
authority under this section only to an Under Secretary of Defense or 
an Assistant Secretary of Defense and only if the Under Secretary or 
Assistant Secretary to whom delegated has been designated by the 
Secretary to act for, and to exercise the general powers of, the 
Secretary.
    ``(2) Except to the extent otherwise provided by the Attorney 
General, the Deputy Attorney General may exercise the authority of the 
Attorney General under this section. The Attorney General may delegate 
that authority only to the Associate Attorney General or an Assistant 
Attorney General and only if the Associate Attorney General or 
Assistant Attorney General to whom delegated has been designated by the 
Attorney General to act for, and to exercise the general powers of, the 
Attorney General.
    ``(g) Relationship to Other Authority.--Nothing in this section 
shall be construed to restrict any executive branch authority regarding 
use of members of the armed forces or equipment of the Department of 
Defense that was in effect before the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 1997.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``382. Emergency situations involving chemical or biological weapons of 
                            mass destruction.''.
    (b) Conforming Amendment to Condition for Providing Equipment and 
Facilities.--Section 372(b)(1) of title 10, United States Code, is 
amended by adding at the end the following: ``The requirement for a 
determination that an item is not reasonably available from another 
source does not apply to assistance provided under section 382 of this 
title pursuant to a request of the Attorney General for the 
assistance.''.
    (c) Conforming Amendments Relating to Authority To Request 
Assistance.--(1)(A) Chapter 10 of title 18, United States Code, is 
amended by inserting after section 175 the following:
``Sec. 175a. Requests for military assistance to enforce prohibition in 
              certain emergencies
    ``The Attorney General may request the Secretary of Defense to 
provide assistance under section 382 of title 10 in support of 
Department of Justice activities relating to the enforcement of section 
175 of this title in an emergency situation involving a biological 
weapon of mass destruction. The authority to make such a request may be 
exercised by another official of the Department of Justice in 
accordance with section 382(f)(2) of title 10.''.
    (B) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 175 the 
following:

``175a. Requests for military assistance to enforce prohibition in 
                            certain emergencies.''.
    (2)(A) The chapter 133B of title 18, United States Code, that 
relates to terrorism is amended by inserting after section 2332c the 
following:
``Sec. 2332d. Requests for military assistance to enforce prohibition 
              in certain emergencies
    ``The Attorney General may request the Secretary of Defense to 
provide assistance under section 382 of title 10 in support of 
Department of Justice activities relating to the enforcement of section 
2332c of this title during an emergency situation involving a chemical 
weapon of mass destruction. The authority to make such a request may be 
exercised by another official of the Department of Justice in 
accordance with section 382(f)(2) of title 10.''.
    (B) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2332c the 
following:

``2332d. Requests for military assistance to enforce prohibition in 
                            certain emergencies.''.
    (d) Civilian Expertise.--The President shall take reasonable 
measures to reduce the reliance of civilian law enforcement officials 
on Department of Defense resources to counter the threat posed by the 
use or potential use of biological and chemical weapons of mass 
destruction within the United States. The measures shall include--
            (1) actions to increase civilian law enforcement expertise 
        to counter such a threat; and
            (2) actions to improve coordination between civilian law 
        enforcement officials and other civilian sources of expertise, 
        within and outside the Federal Government, to counter such a 
        threat.
    (e) Reports.--The President shall submit to Congress the following 
reports:
            (1) Not later than 90 days after the date of the enactment 
        of this Act, a report describing the respective policy 
        functions and operational roles of Federal agencies in 
        countering the threat posed by the use or potential use of 
        biological and chemical weapons of mass destruction within the 
        United States.
            (2) Not later than one year after such date, a report 
        describing--
                    (A) the actions planned to be taken to carry out 
                subsection (d); and
                    (B) the costs of such actions.
            (3) Not later than three years after such date, a report 
        updating the information provided in the reports submitted 
        pursuant to paragraphs (1) and (2), including the measures 
        taken pursuant to subsection (d).

SEC. 1314. TESTING OF PREPAREDNESS FOR EMERGENCIES INVOLVING NUCLEAR, 
              RADIOLOGICAL, CHEMICAL, AND BIOLOGICAL WEAPONS.

    (a) Emergencies Involving Chemical or Biological Weapons.--(1) The 
Secretary of Defense shall develop and carry out a program for testing 
and improving the responses of Federal, State, and local agencies to 
emergencies involving biological weapons and related materials and 
emergencies involving chemical weapons and related materials.
    (2) The program shall include exercises to be carried out during 
each of five successive fiscal years beginning with fiscal year 1997.
    (3) In developing and carrying out the program, the Secretary shall 
coordinate with the Director of the Federal Bureau of Investigation, 
the Director of the Federal Emergency Management Agency, the Secretary 
of Energy, and the heads of any other Federal, State, and local 
government agencies that have an expertise or responsibilities relevant 
to emergencies described in paragraph (1).
    (b) Emergencies Involving Nuclear and Radiological Weapons.--(1) 
The Secretary of Energy shall develop and carry out a program for 
testing and improving the responses of Federal, State, and local 
agencies to emergencies involving nuclear and radiological weapons and 
related materials.
    (2) The program shall include exercises to be carried out during 
each of five successive fiscal years beginning with fiscal year 1997.
    (3) In developing and carrying out the program, the Secretary shall 
coordinate with the Director of the Federal Bureau of Investigation, 
the Director of the Federal Emergency Management Agency, the Secretary 
of Defense, and the heads of any other Federal, State, and local 
government agencies that have an expertise or responsibilities relevant 
to emergencies described in paragraph (1).
    (c) Annual Revisions of Programs.--The official responsible for 
carrying out a program developed under subsection (a) or (b) shall 
revise the program not later than June 1 in each fiscal year covered by 
the program. The revisions shall include adjustments that the official 
determines necessary or appropriate on the basis of the lessons learned 
from the exercise or exercises carried out under the program in the 
fiscal year, including lessons learned regarding coordination problems 
and equipment deficiencies.
    (d) Option To Transfer Responsibility.--(1) The President may 
designate the head of an agency outside the Department of Defense to 
assume the responsibility for carrying out the program developed under 
subsection (a) beginning on or after October 1, 1999, and relieve the 
Secretary of Defense of that responsibility upon the assumption of the 
responsibility by the designated official.
    (2) The President may designate the head of an agency outside the 
Department of Energy to assume the responsibility for carrying out the 
program developed under subsection (b) beginning on or after October 1, 
1999, and relieve the Secretary of Energy of that responsibility upon 
the assumption of the responsibility by the designated official.
    (e) Funding.--(1) Of the total amount authorized to be appropriated 
under section 301, $15,000,000 is available for the development and 
execution of the programs required by this section, including the 
participation of State and local agencies in exercises carried out 
under the programs.
    (2) The amount available under paragraph (1) for the development 
and execution of programs referred to in that paragraph is in addition 
to any other amounts authorized to be appropriated under section 301 
for such purposes.

  Subtitle B--Interdiction of Weapons of Mass Destruction and Related 
                               Materials

SEC. 1321. UNITED STATES BORDER SECURITY.

    (a) Procurement of Detection Equipment.--(1) Of the amount 
authorized to be appropriated by section 301, $15,000,000 is available 
for the procurement of--
            (A) equipment capable of detecting the movement of weapons 
        of mass destruction and related materials into the United 
        States;
            (B) equipment capable of interdicting the movement of 
        weapons of mass destruction and related materials into the 
        United States; and
            (C) materials and technologies related to use of equipment 
        described in subparagraph (A) or (B).
    (2) The amount available under paragraph (1) for the procurement of 
items referred to in that paragraph is in addition to any other amounts 
authorized to be appropriated under section 301 for such purpose.
    (b) Availability of Equipment to Commissioner of Customs.--To the 
extent authorized under chapter 18 of title 10, United States Code, the 
Secretary of Defense may make equipment of the Department of Defense 
described in subsection (a), and related materials and technologies, 
available to the Commissioner of Customs for use in detecting and 
interdicting the movement of weapons of mass destruction into the 
United States.

SEC. 1322. NONPROLIFERATION AND COUNTER-

      PROLIFERATION RESEARCH AND DEVELOPMENT.

    (a) Activities Authorized.--The Secretary of Defense and the 
Secretary of Energy are each authorized to carry out research on and 
development of technical means for detecting the presence, 
transportation, production, and use of weapons of mass destruction and 
technologies and materials that are precursors of weapons of mass 
destruction.
    (b) Funding.--(1)(A) There is authorized to be appropriated for the 
Department of Defense for fiscal year 1997, $10,000,000 for research 
and development carried out by the Secretary of Defense pursuant to 
subsection (a).
    (B) The amount authorized to be appropriated for research and 
development under subparagraph (A) is in addition any other amounts 
that are authorized to be appropriated under this Act for such research 
and development, including funds authorized to be appropriated for 
research and development relating to nonproliferation of weapons of 
mass destruction.
    (2)(A) Of the total amount authorized to be appropriated under 
title XXXI, $19,000,000 is available for research and development 
carried out by the Secretary of Energy pursuant to subsection (a).
    (B) The amount available under subparagraph (B) is in addition to 
any other amount authorized to be appropriated under title XXXI for 
such research and development.

SEC. 1323. INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT.

    Section 203 of the International Emergency Economic Powers Act (50 
U.S.C. 1702) is amended--
            (1) in subsection (a)(1)(B), by striking out ``importation 
        or exportation of,'' and inserting in lieu thereof 
        ``importation, exportation, or attempted importation or 
        exportation of,''; and
            (2) in subsection (b)(3), by striking out ``importation 
        from any country, or the exportation'' and inserting in lieu 
        thereof ``importation or attempted importation from any 
        country, or the exportation or attempted exportation''.

SEC. 1324. CRIMINAL PENALTIES.

    It is the sense of Congress that--
            (1) the sentencing guidelines prescribed by the United 
        States Sentencing Commission for the offenses of importation, 
        attempted importation, exportation, and attempted exportation 
        of nuclear, biological, and chemical weapons materials 
        constitute inadequate punishment for such offenses; and
            (2) Congress urges the United States Sentencing Commission 
        to revise the relevant sentencing guidelines to provide for 
        increased penalties for offenses relating to importation, 
        attempted importation, exportation, and attempted exportation 
        of nuclear, biological, or chemical weapons or related 
        materials or technologies under--
                    (A) section 11 of the Export Administration Act of 
                1979 (50 U.S.C. App. 2410);
                    (B) sections 38 and 40 the Arms Export Control Act 
                (22 U.S.C. 2778 and 2780);
                    (C) the International Emergency Economic Powers Act 
                (50 U.S.C. 1701 et seq.); and
                    (D) section 309(c) of the Nuclear Non-Proliferation 
                Act of 1978 (22 U.S.C. 2156a(c).

SEC. 1325. INTERNATIONAL BORDER SECURITY.

    (a) Secretary of Defense Responsibility.--The Secretary of Defense, 
in consultation and cooperation with the Commissioner of Customs, shall 
carry out programs for assisting customs officials and border guard 
officials in the independent states of the former Soviet Union, the 
Baltic states, and other countries of Eastern Europe in preventing 
unauthorized transfer and transportation of nuclear, biological, and 
chemical weapons and related materials. Training, expert advice, 
maintenance of equipment, loan of equipment, and audits may be provided 
under or in connection with the programs.
    (b) Funding.--(1) Of the total amount authorized to be appropriated 
by section 301, $15,000,000 is available for carrying out the programs 
referred to in subsection (a).
    (2) The amount available under paragraph (1) for programs referred 
to in that paragraph is in addition to any other amounts authorized to 
be appropriated under section 301 for such programs.

Subtitle C--Control and Disposition of Weapons of Mass Destruction and 
            Related Materials Threatening the United States

SEC. 1331. PROTECTION AND CONTROL OF MATERIALS CONSTITUTING A THREAT TO 
              THE UNITED STATES.

    (a) Department of Energy Program.--Subject to subsection (c)(1), 
the Secretary of Energy may, under materials protection, control, and 
accounting assistance of the Department of Energy, provide assistance 
for securing from theft or other unauthorized disposition nuclear 
materials that are not so secured and are located at any site within 
the former Soviet Union where effective controls for securing such 
materials are not in place.
    (b) Department of Defense Program.--Subject to subsection (c)(2), 
the Secretary of Defense may provide materials protection, control, and 
accounting assistance under the Cooperative Threat Reduction Programs 
of the Department of Defense for securing from theft or other 
unauthorized disposition, or for destroying, nuclear, radiological, 
biological, or chemical weapons (or related materials) that are not so 
secure and are located at any site within the former Soviet Union where 
effective controls for securing such weapons are not in place.
    (c) Funding.--(1)(A) Of the total amount authorized to be 
appropriated under title XXXI, $15,000,000 is available for materials 
protection, control, and accounting assistance of the Department of 
Energy for providing assistance under subsection (a).
    (B) The amount available under subparagraph (A) is in addition to 
any other funds that are authorized to be appropriated under title XXXI 
for materials protection, control, and accounting assistance of the 
Department of Energy.
    (2)(A) Of the total amount authorized to be appropriated under 
section 301, $10,000,000 is available for the Cooperative Threat 
Reduction Programs of the Department of Defense for providing materials 
protection, control, and accounting assistance under subsection (b).
    (B) The amount available under subparagraph (A) is in addition to 
any other funds that are authorized to be appropriated by section 301 
for materials protection, control, and accounting assistance of the 
Department of Defense.

SEC. 1332. VERIFICATION OF DISMANTLEMENT AND CONVERSION OF WEAPONS AND 
              MATERIALS.

    (a) Funding for Cooperative Activities for Development of 
Technologies.--Of the total amount authorized to be appropriated under 
title XXXI, $10,000,000 is available for continuing and expediting 
cooperative activities with the Government of Russia to develop and 
deploy--
            (1) technologies for improving verification of nuclear 
        warhead dismantlement;
            (2) technologies for converting plutonium from weapons into 
        forms that--
                    (A) are better suited for long-term storage than 
                are the forms from which converted;
                    (B) facilitate verification; and
                    (C) are suitable for nonweapons use; and
            (3) technologies that promote openness in Russian 
        production, storage, use, and final and interim disposition of 
        weapon-usable fissible material, including at tritium/isotope 
        production reactors, uranium enrichment plants, chemical 
        separation plants, and fabrication facilities associated with 
        naval and civil research reactors.
    (b) Weapons-Usable Fissile Materials To Be Covered by Cooperative 
Threat Reduction Programs on Elimination or Transportation of Nuclear 
Weapons.--Section 1201(b)(1) of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 469; 22 U.S.C. 5955 
note) is amended by inserting ``, fissile material suitable for use in 
nuclear weapons,'' after ``other weapons''.

SEC. 1333. ELIMINATION OF PLUTONIUM PRODUCTION.

    (a) Replacement Program.--The Secretary of Defense, in consultation 
with the Secretary of Energy, shall develop a cooperative program with 
the Government of Russia to eliminate the production of weapons grade 
plutonium by modifying or replacing the reactor cores at Tomsk-7 and 
Krasnoyarsk-26 with reactor cores that are less suitable for the 
production of weapons-grade plutonium.
    (b) Program Requirements.--(1) The program shall be designed to 
achieve completion of the modifications or replacements of the reactor 
cores within three years after the modification or replacement 
activities under the program are begun.
    (2) The plan for the program shall--
            (A) specify--
                    (i) successive steps for the modification or 
                replacement of the reactor cores; and
                    (ii) clearly defined milestones to be achieved; and
            (B) include estimates of the costs of the program.
    (c) Submission of Program Plan to Congress.--Not later than 180 
days after the date of the enactment of this Act, the Secretary of 
Defense shall submit to Congress--
            (1) a plan for the program under subsection (a);
            (2) an estimate of the United States funding that is 
        necessary for carrying out the activities under the program for 
        each fiscal year covered by the program; and
            (3) a comparison of the benefits of the program with the 
        benefits of other nonproliferation programs.
    (d) Funding for Initial Phase.--(1) Of the total amount authorized 
to be appropriated by section 301 other than for Cooperative Threat 
Reduction programs, $16,000,000 is available for the initial phase of 
the program under subsection (a).
    (2) The amount available for the initial phase of the reactor 
modification or replacement program under paragraph (1) is in addition 
to amounts authorized to be appropriated for Cooperative Threat 
Reduction programs under section 301(20).

SEC. 1334. INDUSTRIAL PARTNERSHIP PROGRAMS TO DEMILITARIZE WEAPONS OF 
              MASS DESTRUCTION PRODUCTION FACILITIES.

    (a) Department of Energy Program.--The Secretary of Energy shall 
expand the Industrial Partnership Program of the Department of Energy 
to include coverage of all of the independent states of the former 
Soviet Union.
    (b) Department of Defense Program.--The Secretary of Defense shall 
establish a program to support the dismantlement or conversion of the 
biological and chemical weapons facilities in the independent states of 
the former Soviet Union to uses for nondefense purposes. The Secretary 
may carry out such program in conjunction with, or separately from, the 
organization designated as the Defense Enterprise Fund (formerly 
designated as the ``Demilitarization Enterprise Fund'' under section 
1204 of the National Defense Authorization Act for Fiscal Year 1994 
(Public Law 103-160; 22 U.S.C. 5953)).
    (c) Funding for Department of Defense Program.--(1)(A) Of the total 
amount authorized to be appropriated under section 301, $15,000,000 is 
available for the program under subsection (b).
    (B) The amount available under subparagraph (A) for the industrial 
partnership program of the Department of Defense established pursuant 
to subsection (b) is in addition to the amount authorized to be 
appropriated for Cooperative Threat Reduction programs under section 
301.
    (2) It is the sense of Congress that the Secretary of Defense 
should transfer to the Defense Enterprise Fund, $20,000,000 out of the 
funds appropriated for Cooperative Threat Reduction programs for fiscal 
years before fiscal year 1997 that remain available for obligation.

SEC. 1335. LAB-TO-LAB PROGRAM TO IMPROVE THE SAFETY AND SECURITY OF 
              NUCLEAR MATERIALS.

    (a) Program Expansion Authorized.--The Secretary of Energy is 
authorized to expand the Lab-to-Lab program of the Department of Energy 
to improve the safety and security of nuclear materials in the 
independent states of the former Soviet Union where the Lab-to-Lab 
program is not being carried out on the date of the enactment of this 
Act.
    (b) Funding.--(1) Of the total amount authorized to be appropriated 
under title XXXI, $20,000,000 is available for expanding the Lab-to-Lab 
program as authorized under subsection (a).
    (2) The amount available under paragraph (1) is in addition to any 
other amount otherwise available for the Lab-to-Lab program.

SEC. 1336. COOPERATIVE ACTIVITIES ON SECURITY OF HIGHLY ENRICHED 
              URANIUM USED FOR PROPULSION OF RUSSIAN SHIPS.

    (a) Responsible United States Official.--The Secretary of Energy 
shall be responsible for carrying out United States cooperative 
activities with the Government of the Russian Federation on improving 
the security of highly enriched uranium that is used for propulsion of 
Russian military and civilian ships.
    (b) Plan Required.--(1) The Secretary shall develop and 
periodically update a plan for the cooperative activities referred to 
in subsection (a).
    (2) The Secretary shall coordinate the development and updating of 
the plan with the Secretary of Defense. The Secretary of Defense shall 
involve the Joint Chiefs of Staff in the coordination.
    (c) Funding.--(1) Of the total amount authorized to be appropriated 
by title XXXI, $6,000,000 is available for materials protection, 
control, and accounting program of the Department of Energy for the 
cooperative activities referred to in subsection (a).
    (2) The amount available for the Department of Energy for materials 
protection, control, and accounting program under paragraph (1) is in 
addition to other amounts authorized to be appropriated by title XXXI 
for such program.

SEC. 1337. MILITARY-TO-MILITARY RELATIONS.

    (a) Funding.--Of the total amount authorized to be appropriated 
under section 301, $2,000,000 is available for expanding military-to-
military programs of the United States that focus on countering the 
threats of proliferation of weapons of mass destruction so as to 
include the security forces of independent states of the former Soviet 
Union, particularly states in the Caucasus region and Central Asia.
    (b) Relationship to Other Funding Authority.--The amount available 
for expanding military-to-military programs under subsection (a) is in 
addition to the amount authorized to be appropriated for Cooperative 
Threat Reduction programs under section 301.

SEC. 1338. TRANSFER AUTHORITY.

    (a) Secretary of Defense.--(1) To the extent provided in 
appropriations Acts, the Secretary of Defense may transfer amounts 
appropriated pursuant to this subtitle for the Department of Defense 
for programs and authorities under this subtitle to appropriations 
available for programs authorized under subtitle A.
    (2) Amounts so transferred shall be merged with the appropriations 
to which transferred and shall be available for the programs for which 
the amounts are transferred.
    (3) The transfer authority under paragraph (1) is in addition to 
any other transfer authority provided by this Act.
    (b) Secretary of Energy.--(1) To the extent provided in 
appropriations Acts, the Secretary of Energy may transfer amounts 
appropriated pursuant to this subtitle for the Department of Energy for 
programs and authorities under this subtitle to appropriations 
available for programs authorized under subtitle A.
    (2) Amounts so transferred shall be merged with the appropriations 
to which transferred and shall be available for the programs for which 
the amounts are transferred.
    (3) The transfer authority under paragraph (1) is in addition to 
any other transfer authority provided by this Act.

    Subtitle D--Coordination of Policy and Countermeasures Against 
              Proliferation of Weapons of Mass Destruction

SEC. 1341. NATIONAL COORDINATOR ON NONPROLIFERATION.

    (a) Designation of Position.--The President shall designate an 
individual to serve in the Executive Office of the President as the 
National Coordinator for Nonproliferation Matters.
    (b) Duties.--The Coordinator shall have the following 
responsibilities:
            (1) To be the principal adviser to the President on 
        nonproliferation of weapons of mass destruction, including 
        issues related to terrorism, arms control, and international 
        organized crime.
            (2) To chair the Committee on Nonproliferation established 
        under section 1342.
            (3) To take such actions as are necessary to ensure that 
        there is appropriate emphasis in, cooperation on, and 
        coordination of, nonproliferation research efforts of the 
        United States, including activities of Federal agencies as well 
        as activities of contractors funded by the Federal Government.
    (c) Relationship to Certain Senior Directors of National Security 
Council.--(1) The senior directors of the National Security Council 
report to the Coordinator regarding the following matters:
            (A) Nonproliferation of weapons of mass destruction and 
        related issues.
            (B) Management of crises involving use or threatened use of 
        weapons of mass destruction, and on management of the 
        consequences of the use or threatened use of such a weapon.
            (C) Terrorism, arms control, and organized crime issues 
        that relate to the threat of proliferation of weapons of mass 
        destruction.
    (2) Nothing in paragraph (1) shall be construed to affect the 
reporting relationship between a senior director and the Assistant to 
the President for National Security Affairs or any other supervisor 
regarding matters other than matters described in paragraph (1).
    (d) Allocation of Funds.--Of the total amount authorized to be 
appropriated under section 201, $2,000,000 is available for carrying 
out research referred to in subsection (b)(3). Such amount is in 
addition to any other amounts authorized to be appropriated under 
section 201 for such purpose.

SEC. 1342. NATIONAL SECURITY COUNCIL COMMITTEE ON NONPROLIFERATION.

    (a) Establishment.--The Committee on Nonproliferation (in this 
section referred to as the ``Committee'') is established as a committee 
of the National Security Council.
    (b) Membership.--(1) The Committee shall be composed of the 
following:
            (A) The Secretary of State.
            (B) The Secretary of Defense.
            (C) The Director of Central Intelligence.
            (D) The Attorney General.
            (E) The Secretary of Energy.
            (F) The Administrator of the Federal Emergency Management 
        Agency.
            (G) The Secretary of the Treasury.
            (H) The Secretary of Commerce.
            (I) Such other members as the President may designate.
    (2) The National Coordinator for Nonproliferation Matters shall 
chair the Committee on Nonproliferation.
    (c) Responsibilities.--The Committee has the following 
responsibilities:
            (1) To review and coordinate Federal programs, policies, 
        and directives relating to the proliferation of weapons of mass 
        destruction and related materials and technologies, including 
        matters relating to terrorism and international organized 
        crime.
            (2) To make recommendations to the President regarding the 
        following:
                    (A) Integrated national policies for countering the 
                threats posed by weapons of mass destruction.
                    (B) Options for integrating Federal agency budgets 
                for countering such threats.
                    (C) Means to ensure that the Federal, State, and 
                local governments have adequate capabilities to manage 
                crises involving nuclear, radiological, biological, or 
                chemical weapons or related materials or technologies, 
                and to manage the consequences of a use of such a 
                weapon or related materials or technologies, and that 
                use of those capabilities is coordinated.
                    (D) Means to ensure appropriate cooperation on, and 
                coordination of, the following:
                            (i) Preventing the smuggling of weapons of 
                        mass destruction and related materials and 
                        technologies.
                            (ii) Promoting domestic and international 
                        law enforcement efforts against proliferation-
                        related efforts.
                            (iii) Countering the involvement of 
                        organized crime groups in proliferation-related 
                        activities.
                            (iv) Safeguarding weapons of mass 
                        destruction materials and related technologies.
                            (v) Improving coordination and cooperation 
                        among intelligence activities, law enforcement, 
                        and the Departments of Defense, State, 
                        Commerce, and Energy in support of 
                        nonproliferation and counterproliferation 
                        efforts.
                            (vi) Ensuring the continuation of effective 
                        export controls over materials and technologies 
                        that can contribute to the acquisition of 
                        weapons of mass destruction.
                            (vii) Reducing proliferation of weapons of 
                        mass destruction and related materials and 
                        technologies.

SEC. 1343. COMPREHENSIVE PREPAREDNESS PROGRAM.

    (a) Program Required.--The President, acting through the Committee 
on Nonproliferation established under section 1342, shall develop a 
comprehensive program for carrying out this title.
    (b) Content of Program.--The program set forth in the report shall 
include specific plans as follows:
            (1) Plans for countering proliferation of weapons of mass 
        destruction and related materials and technologies.
            (2) Plans for training and equipping Federal, State, and 
        local officials for managing a crisis involving a use or 
        threatened use of a weapon of mass destruction, including the 
        consequences of the use of such a weapon.
            (3) Plans for providing for regular sharing of information 
        among intelligence, law enforcement, and customs agencies.
            (4) Plans for training and equipping law enforcement units, 
        customs services, and border security personnel to counter the 
        smuggling of weapons of mass destruction and related materials 
        and technologies.
            (5) Plans for establishing appropriate centers for 
        analyzing seized nuclear, radiological, biological, and 
        chemical weapons, and related materials and technologies.
            (6) Plans for establishing in the United States appropriate 
        legal controls and authorities relating to the exporting of 
        nuclear, radiological, biological, and chemical weapons, and 
        related materials and technologies.
            (7) Plans for encouraging and assisting governments of 
        foreign countries to implement and enforce laws that set forth 
        appropriate penalties for offenses regarding the smuggling of 
        weapons of mass destruction and related materials and 
        technologies.
            (8) Plans for building the confidence of the United States 
        and Russia in each other's controls over United States and 
        Russian nuclear weapons and fissile materials, including plans 
        for verifying the dismantlement of nuclear weapons.
            (9) Plans for reducing United States and Russian stockpiles 
        of excess plutonium, reflecting--
                    (A) consideration of the desirability and 
                feasibility of a United States-Russian agreement 
                governing fissile material disposition and the specific 
                technologies and approaches to be used for disposition 
                of excess plutonium; and
                    (B) an assessment of the options for United States 
                cooperation with Russia in the disposition of Russian 
                plutonium.
            (10) Plans for studying the merits and costs of 
        establishing a global network of means for detecting and 
        responding to terroristic or other criminal use of biological 
        agents against people or other forms of life in the United 
        States or any foreign country.
    (c) Report.--(1) At the same time that the President submits the 
budget for fiscal year 1998 to Congress pursuant to section 1105(a) of 
title 31, United States Code, the President shall submit to Congress a 
report that sets forth the comprehensive program developed under 
subsection (a).
    (2) The report shall include the following:
            (A) The specific plans for the program that are required 
        under subsection (b).
            (B) Estimates of the funds necessary for carrying out such 
        plans in fiscal year 1998.
    (3) The report shall be in an unclassified form. If there is a 
classified version of the report, the President shall submit the 
classified version at the same time.

SEC. 1344. TERMINATION.

    After September 30, 1999, the President--
            (1) is not required to maintain a National Coordinator for 
        Nonproliferation Matters under section 1341; and
            (2) may terminate the Committee on Nonproliferation 
        established under section 1342.

                       Subtitle E--Miscellaneous

SEC. 1351. CONTRACTING POLICY.

    It is the sense of Congress that the Secretary of Defense, the 
Secretary of Energy, the Secretary of the Treasury, and the Secretary 
of State--
            (1) in the administration of funds available to such 
        officials in accordance with this title, should (to the extent 
        possible under law) contract directly with suppliers in 
        independent states of the former Soviet Union to facilitate the 
        purchase of goods and services necessary to carry out 
        effectively the programs and authorities provided or referred 
        to in subtitle C; and
            (2) to do so should seek means, consistent with law, to 
        utilize innovative contracting approaches to avoid delay and 
        increase the effectiveness of such programs and of the exercise 
        of such authorities.

SEC. 1352. TRANSFERS OF ALLOCATIONS AMONG COOPERATIVE THREAT REDUCTION 
              PROGRAMS.

    (a) Findings.--Congress makes the following findings:
            (1) The various Cooperative Threat Reduction programs are 
        being carried out at different rates in the various countries 
        covered by such programs.
            (2) It is necessary to authorize transfers of funding 
        allocations among the various programs in order to maximize the 
        effectiveness of United States efforts under such programs.
    (b) Transfers Authorized.--Funds appropriated for the purposes set 
forth in subsection (a) of section 1202 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
409) may be used for any such purpose without regard to the allocation 
set forth in that section and without regard to subsection (b) of such 
section.

SEC. 1353. ADDITIONAL CERTIFICATIONS.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the Cooperative Threat Reduction programs and other 
        United States programs that are derived from programs 
        established under the Former Soviet Union Demilitarization Act 
        of 1992 (title XIV of Public Law 102-484; 22 U.S.C. 2901 et 
        seq.) should be expanded by offering assistance under those 
        programs to other independent states of the former Soviet Union 
        in addition to Russia, Ukraine, Kazakstan, and Belarus; and
            (2) the President should offer assistance to additional 
        independent states of the former Soviet Union in each case in 
        which the participation of such states would benefit national 
        security interests of the United States by improving border 
        controls and safeguards over materials and technology 
        associated with weapons of mass destruction.
    (b) Extension of Coverage.--Assistance under programs referred to 
in subsection (a) may, notwithstanding any other provision of law, be 
extended to include an independent state of the former Soviet Union if 
the President certifies to Congress that it is in the national 
interests of the United States to extend the assistance to that state.

SEC. 1354. PURCHASE OF LOW-ENRICHED URANIUM DERIVED FROM RUSSIAN HIGHLY 
              ENRICHED URANIUM.

    (a) Sense of Congress.--It is the sense of Congress that the allies 
of the United States and other nations should participate in efforts to 
ensure that stockpiles of weapons-grade nuclear material are reduced.
    (b) Actions by the Secretary of State.--Congress urges the 
Secretary of State to encourage, in consultation with the Secretary of 
Energy, other countries to purchase low-enriched uranium that is 
derived from highly enriched uranium extracted from Russian nuclear 
weapons.

SEC. 1355. PURCHASE, PACKAGING, AND TRANSPORTATION OF FISSILE MATERIALS 
              AT RISK OF THEFT.

    It is the sense of Congress that--
            (1) the Secretary of Defense, the Secretary of Energy, the 
        Secretary of the Treasury, and the Secretary of State should 
        purchase, package, and transport to secure locations weapons-
        grade nuclear materials from a stockpile of such materials if 
        such officials determine that--
                    (A) there is a significant risk of theft of such 
                materials; and
                    (B) there is no reasonable and economically 
                feasible alternative for securing such materials; and
            (2) if it is necessary to do so in order to secure the 
        materials, the materials should be imported into the United 
        States, subject to the laws and regulations that are applicable 
        to the importation of such materials into the United States.

SEC. 1356. REDUCTIONS IN AUTHORIZATION OF APPROPRIATIONS.

    (a) Navy RDT&E.--(1) The total amount authorized to be appropriated 
under section 201(2) is reduced by $150,000,000.
    (2) The reduction in paragraph (1) shall be applied to reduce by 
$150,000,000 the amount authorized to be appropriated under section 
201(2) for the Distributed Surveillance System.
    (b) Operations and Maintenance, Defense-Wide.--The total amount 
authorized to be appropriated under section 301(5) is reduced by 
$85,000,000.

               TITLE XIV--FEDERAL EMPLOYEE TRAVEL REFORM

SEC. 1401. SHORT TITLE.

    This title may be cited as the ``Travel Reform and Savings Act of 
1996''.

                    Subtitle A--Relocation Benefits

SEC. 1411. MODIFICATION OF ALLOWANCE FOR SEEKING PERMANENT RESIDENCE 
              QUARTERS.

    Section 5724a of title 5, United States Code, is amended to read as 
follows:
``Sec. 5724a. Relocation expenses of employees transferred or 
              reemployed
    ``(a) An agency shall pay to or on behalf of an employee who 
transfers in the interest of the Government, a per diem allowance or 
the actual subsistence expenses, or a combination thereof, of the 
immediate family of the employee for en route travel of the immediate 
family between the employee's old and new official stations.
    ``(b)(1) An agency may pay to or on behalf of an employee who 
transfers in the interest of the Government between official stations 
located within the United States--
            ``(A) the expenses of transportation, and either a per diem 
        allowance or the actual subsistence expenses, or a combination 
        thereof, of the employee and the employee's spouse for travel 
        to seek permanent residence quarters at a new official station; 
        or
            ``(B) the expenses of transportation, and an amount for 
        subsistence expenses in lieu of a per diem allowance or the 
        actual subsistence expenses or a combination thereof, 
        authorized in subparagraph (A) of this paragraph.
    ``(2) Expenses authorized under this subsection may be allowed only 
for one round trip in connection with each change of station of the 
employee.''.

SEC. 1412. MODIFICATION OF TEMPORARY QUARTERS SUBSISTENCE EXPENSES 
              ALLOWANCE.

    Section 5724a of title 5, United States Code, is further amended by 
adding at the end the following new subsection:
    ``(c)(1) An agency may pay to or on behalf of an employee who 
transfers in the interest of the Government--
            ``(A) actual subsistence expenses of the employee and the 
        employee's immediate family for a period of up to 60 days while 
        occupying temporary quarters when the new official station is 
        located within the United States as defined in subsection (d) 
        of this section; or
            ``(B) an amount for subsistence expenses instead of the 
        actual subsistence expenses authorized in subparagraph (A) of 
        this paragraph.
    ``(2) The period authorized in paragraph (1) of this subsection for 
payment of expenses for residence in temporary quarters may be extended 
up to an additional 60 days if the head of the agency concerned or the 
designee of such head of the agency determines that there are 
compelling reasons for the continued occupancy of temporary quarters.
    ``(3) The regulations implementing paragraph (1)(A) shall prescribe 
daily rates and amounts for subsistence expenses per individual.''.

SEC. 1413. MODIFICATION OF RESIDENCE TRANSACTION EXPENSES ALLOWANCE.

    (a) Expenses of Sale.--Section 5724a of title 5, United States 
Code, is further amended by adding at the end the following new 
subsection:
    ``(d)(1) An agency shall pay to or on behalf of an employee who 
transfers in the interest of the Government, expenses of the sale of 
the residence (or the settlement of an unexpired lease) of the employee 
at the old official station and purchase of a residence at the new 
official station that are required to be paid by the employee, when the 
old and new official stations are located within the United States.
    ``(2) An agency shall pay to or on behalf of an employee who 
transfers in the interest of the Government from a post of duty located 
outside the United States to an official station within the United 
States (other than the official station within the United States from 
which the employee was transferred when assigned to the foreign tour of 
duty)--
            ``(A) expenses required to be paid by the employee of the 
        sale of the residence (or the settlement of an unexpired lease) 
        of the employee at the old official station from which the 
        employee was transferred when the employee was assigned to the 
        post of duty located outside the United States; and
            ``(B) expenses required to be paid by the employee of the 
        purchase of a residence at the new official station within the 
        United States.
    ``(3) Reimbursement of expenses under paragraph (2) of this 
subsection shall not be allowed for any sale (or settlement of an 
unexpired lease) or purchase transaction that occurs prior to official 
notification that the employee's return to the United States would be 
to an official station other than the official station from which the 
employee was transferred when assigned to the post of duty outside the 
United States.
    ``(4) Reimbursement for brokerage fees on the sale of the residence 
and other expenses under this subsection may not exceed those 
customarily charged in the locality where the residence is located.
    ``(5) Reimbursement may not be made under this subsection for 
losses incurred by the employee on the sale of the residence.
    ``(6) This subsection applies regardless of whether title to the 
residence or the unexpired lease is--
            ``(A) in the name of the employee alone;
            ``(B) in the joint names of the employee and a member of 
        the employee's immediate family; or
            ``(C) in the name of a member of the employee's immediate 
        family alone.
    ``(7)(A) In connection with the sale of the residence at the old 
official station, reimbursement under this subsection shall not exceed 
10 percent of the sale price.
    ``(B) In connection with the purchase of a residence at the new 
official station, reimbursement under this subsection shall not exceed 
5 percent of the purchase price.
    ``(8) For purposes of this subsection, the term `United States' 
means the several States of the United States, the District of 
Columbia, the territories and possessions of the United States, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, and the areas and installations in the Republic of Panama made 
available to the United States pursuant to the Panama Canal Treaty of 
1977 and related agreements (as described in section 3(a) of the Panama 
Canal Act of 1979).''.
    (b) Relocation Services.--Section 5724c of title 5, United State 
Code, is amended to read as follows:
``Sec. 5724c. Relocation services
    ``Under regulations prescribed under section 5737, each agency may 
enter into contracts to provide relocation services to agencies and 
employees for the purpose of carrying out this subchapter. An agency 
may pay a fee for such services. Such services include arranging for 
the purchase of a transferred employee's residence.''.

SEC. 1414. AUTHORITY TO PAY FOR PROPERTY MANAGEMENT SERVICES.

    Section 5724a of title 5, United States Code, is further amended--
            (1) in subsection (d) (as added by section 1413 of this 
        title)--
                    (A) by redesignating paragraph (8) as paragraph 
                (9); and
                    (B) by inserting after paragraph (7) the following 
                new paragraph:
    ``(8) An agency may pay to or on behalf of an employee who 
transfers in the interest of the Government, expenses of property 
management services when the agency determines that such transfer is 
advantageous and cost-effective to the Government, instead of expenses 
under paragraph (2) or (3) of this subsection, for sale of the 
employee's residence.''; and
            (2) by adding at the end the following new subsection:
    ``(e) An agency may pay to or on behalf of an employee who 
transfers in the interest of the Government, the expenses of property 
management services when the employee transfers to a post of duty 
outside the United States as defined in subsection (d) of this section. 
Such payment shall terminate upon return of the employee to an official 
station within the United States as defined in subsection (d) of this 
section.''.

SEC. 1415. AUTHORITY TO TRANSPORT A PRIVATELY OWNED MOTOR VEHICLE 
              WITHIN THE CONTINENTAL UNITED STATES.

    (a) In General.--Section 5727 of title 5, United States Code, is 
amended--
            (1) by redesignating subsections (c) through (e) as 
        subsections (d) through (f), respectively;
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Under regulations prescribed under section 5737, the 
privately owned motor vehicle or vehicles of an employee, including a 
new appointee or a student trainee for whom travel and transportation 
expenses are authorized under section 5723, may be transported at 
Government expense to a new official station of the employee when the 
agency determines that such transport is advantageous and cost-
effective to the Government.''; and
            (3) in subsection (e) (as so redesignated), by striking 
        ``subsection (b) of this section'' and by inserting 
        ``subsection (b) or (c) of this section''.
    (b) Availability of Appropriations.--(1) Section 5722(a) of title 
5, United States Code, is amended--
            (A) by striking ``and'' at the end of paragraph (1);
            (B) by striking the period at the end of paragraph (2) and 
        inserting ``; and''; and
            (C) by adding at the end the following:
            ``(3) the expenses of transporting a privately owned motor 
        vehicle to the extent authorized under section 5727(c).''.
    (2) Section 5723(a) of title 5, United States Code, is amended--
            (A) by striking ``and'' at the end of paragraph (1);
            (B) by inserting ``and'' after the semicolon at the end of 
        paragraph (2); and
            (C) by adding at the end the following:
            ``(3) the expenses of transporting a privately owned motor 
        vehicle to the extent authorized under section 5727(c);''.

SEC. 1416. AUTHORITY TO PAY LIMITED RELOCATION ALLOWANCES TO AN 
              EMPLOYEE WHO IS PERFORMING AN EXTENDED ASSIGNMENT.

    (a) In General.--Subchapter II of chapter 57 of title 5, United 
States Code, is amended by adding at the end the following new section:
``Sec. 5736. Relocation expenses of an employee who is performing an 
              extended assignment
    ``(a) Under regulations prescribed under section 5737, an agency 
may pay to or on behalf of an employee assigned from the employee's 
official station to a duty station for a period of no less than 6 
months and no greater than 30 months, the following expenses in lieu of 
payment of expenses authorized under subchapter I of this chapter:
            ``(1) Travel expenses to and from the assignment location 
        in accordance with section 5724.
            ``(2) Transportation expenses of the immediate family and 
        household goods and personal effects to and from the assignment 
        location in accordance with section 5724.
            ``(3) A per diem allowance for the employee's immediate 
        family to and from the assignment location in accordance with 
        section 5724a(a).
            ``(4) Travel and transportation expenses of the employee 
        and spouse to seek residence quarters at the assignment 
        location in accordance with section 5724a(b).
            ``(5) Subsistence expenses of the employee and the 
        employee's immediate family while occupying temporary quarters 
        upon commencement and termination of the assignment in 
        accordance with section 5724a(c).
            ``(6) An amount, in accordance with section 5724a(g), to be 
        used by the employee for miscellaneous expenses.
            ``(7) The expenses of transporting a privately owned motor 
        vehicle or vehicles to the assignment location in accordance 
        with section 5727.
            ``(8) An allowance as authorized under section 5724b of 
        this title for Federal, State, and local income taxes incurred 
        on reimbursement of expenses paid under this section or on 
        services provided in kind under this section.
            ``(9) Expenses of nontemporary storage of household goods 
        and personal effects as defined in section 5726(a). The weight 
        of the household goods and personal effects stored under this 
        subsection, together with the weight of property transported 
        under section 5724(a), may not exceed the total maximum weight 
        which could be transported in accordance with section 5724(a).
            ``(10) Expenses of property management services.
    ``(b) An agency shall not make payment under this section to or on 
behalf of the employee for expenses incurred after termination of the 
temporary assignment.''.
    (b) Clerical Amendment.--The table of sections for chapter 57 of 
title 5, United States Code, is amended by inserting after the item 
relating to section 5735 the following new item:

``5736. Relocation expenses of an employee who is performing an 
                            extended assignment.''.

SEC. 1417. AUTHORITY TO PAY A HOME MARKETING INCENTIVE.

    (a) In General.--Subchapter IV of chapter 57 of title 5, United 
States Code, is amended by adding at the end the following new section:
``Sec. 5756. Home marketing incentive payment
    ``(a) Under such regulations as the Administrator of General 
Services may prescribe, an agency may pay to an employee who transfers 
in the interest of the Government an amount, not to exceed a maximum 
payment amount established by the Administrator in consultation with 
the Director of the Office of Management and Budget, to encourage the 
employee to aggressively market the employee's residence at the old 
official station when--
            ``(1) the residence is entered into a program established 
        under a contract in accordance with section 5724c of this 
        chapter, to arrange for the purchase of the residence;
            ``(2) the employee finds a buyer who completes the purchase 
        of the residence through the program; and
            ``(3) the sale of the residence to the individual results 
        in a reduced cost to the Government.
    ``(b) For fiscal years 1997 and 1998, the Administrator shall 
establish a maximum payment amount of 5 percent of the sales price of 
the residence.''.
    (b) Clerical Amendment.--The table of sections for chapter 57 of 
title 5, United States Code, is amended by inserting at the end the 
following:

``5756. Home marketing incentive payment.''.

SEC. 1418. CONFORMING AMENDMENTS.

    (a) Amendments to Title 5, United States Code.--(1) Section 5724a 
of title 5, United States Code, is further amended by adding at the end 
the following new subsections:
    ``(g)(1) Subject to paragraph (2), an employee who is reimbursed 
under subsections (a) through (f) of this section or section 5724(a) of 
this title is entitled to an amount for miscellaneous expenses--
            ``(A) not to exceed 2 weeks' basic pay, if such employee 
        has an immediate family; or
            ``(B) not to exceed 1 week's basic pay, if such employee 
        does not have an immediate family.
    ``(2) Amounts paid under paragraph (1) may not exceed amounts 
determined at the maximum rate payable for a position at GS-13 of the 
General Schedule.
    ``(h) A former employee separated by reason of reduction in force 
or transfer of function who within 1 year after the separation is 
reemployed by a nontemporary appointment at a different geographical 
location from that where the separation occurred, may be allowed and 
paid the expenses authorized by sections 5724, 5725, 5726(b), and 5727 
of this title, and may receive the benefits authorized by subsections 
(a) through (g) of this section, in the same manner as though such 
employee had been transferred in the interest of the Government without 
a break in service to the location of reemployment from the location 
where separated.
    ``(i) Payments for subsistence expenses, including amounts in lieu 
of per diem or actual subsistence expenses or a combination thereof, 
authorized under this section shall not exceed the maximum payment 
allowed under regulations which implement section 5702 of this title.
    ``(j) Subsections (a), (b), and (c) shall be implemented under 
regulations issued under section 5737.''.
    (2) Section 3375 of title 5, United States Code, is amended--
            (A) in subsection (a)(3), by striking ``section 5724a(a)(1) 
        of this title'' and inserting ``section 5724a(a) of this 
        title'';
            (B) in subsection (a)(4), by striking ``section 5724a(a)(3) 
        of this title'' and inserting ``section 5724a(c) of this 
        title''; and
            (C) in subsection (a)(5), by striking ``section 5724a(b) of 
        this title'' and inserting ``section 5724a(g) of this title''.
    (3) Section 5724(e) of title 5, United States Code, is amended by 
striking ``section 5724a(a), (b) of this title'' and inserting 
``section 5724a(a) through (g) of this title''.
    (b) Miscellaneous.--(1) Section 707 of title 38, United States 
Code, is amended--
            (A) in subsection (a)(6), by striking ``Section 
        5724a(a)(3)'' and inserting ``Section 5724a(c)''; and
            (B) in subsection (a)(7), by striking ``Section 
        5724a(a)(4)'' and inserting ``section 5724a(d)''.
    (2) Section 501 of the Public Health Service Act (42 U.S.C. 290aa) 
is amended--
            (A) in subsection (g)(2)(A), by striking ``5724a(a)(1)'' 
        and inserting ``5724a(a)''; and
            (B) in subsection (g)(2)(A), by striking ``5724a(a)(3)'' 
        and inserting ``5724a(c)''.
    (3) Section 925 of the Public Health Service Act (42 U.S.C. 299c-4) 
is amended--
            (A) in subsection (f)(2)(A), by striking ``5724a(a)(1)'' 
        and inserting ``5724a(a)''; and
            (B) in subsection (f)(2)(A), by striking ``5724a(a)(3)'' 
        and inserting ``5724a(c)''.

                  Subtitle B--Miscellaneous Provisions

SEC. 1431. REPEAL OF THE LONG-DISTANCE TELEPHONE CALL CERTIFICATION 
              REQUIREMENT.

    Section 1348 of title 31, United States Code, is amended--
            (1) by striking the last sentence of subsection (a)(2);
            (2) by striking subsection (b); and
            (3) by redesignating subsections (c) and (d) as subsections 
        (b) and (c), respectively.

SEC. 1432. TRANSFER OF AUTHORITY TO ISSUE REGULATIONS.

    (a) In General.--Subchapter II of chapter 57 of title 5, United 
States Code, is further amended by adding at the end the following new 
section:
``Sec. 5737. Regulations
    ``(a)(1) Except as specifically provided in this subchapter, the 
Administrator of General Services shall prescribe regulations necessary 
for the administration of this subchapter.
    ``(2) Notwithstanding any limitation of this subchapter, in 
promulgating regulations under paragraph (1) of this subsection, the 
Administrator of General Services shall include a provision authorizing 
the head of an agency or his designee to waive any limitation of this 
subchapter or in any implementing regulation for any employee 
relocating to or from a remote or isolated location who would otherwise 
suffer hardship.
    ``(b) The Administrator of General Services shall prescribe 
regulations necessary for the implementation of section 5724b of this 
subchapter in consultation with the Secretary of the Treasury.
    ``(c) The Secretary of Defense shall prescribe regulations 
necessary for the implementation of section 5735 of this subchapter.''.
    (b) Clerical Amendment.--The table of sections for chapter 57 of 
title 5, United States Code, is further amended by inserting after the 
item relating to section 5736 the following new item:

``5737. Regulations.''.
    (c) Conforming Amendments.--(1) Section 5722 of title 5, United 
States Code, is amended by striking ``Under such regulations as the 
President may prescribe'', and inserting ``Under regulations prescribed 
under section 5737 of this title''.
    (2) Section 5723 of title 5, United States Code, is amended by 
striking ``Under such regulations as the President may prescribe'', and 
inserting ``Under regulations prescribed under section 5737 of this 
title''.
    (3) Section 5724 of title 5, United States Code, is amended--
            (A) in subsections (a) through (c), by striking ``Under 
        such regulations as the President may prescribe'' each place it 
        appears and inserting ``Under regulations prescribed under 
        section 5737 of this title'';
            (B) in subsections (c) and (e), by striking ``under 
        regulations prescribed by the President'' and inserting ``under 
        regulations prescribed under section 5737 of this title''; and
            (C) in subsection (f), by striking ``under the regulations 
        of the President'' and inserting ``under regulations prescribed 
        under section 5737 of this title''.
    (4) Section 5724b of title 5, United States Code, is amended by 
striking ``Under such regulations as the President may prescribe'' and 
inserting ``Under regulations prescribed under section 5737 of this 
title''.
    (5) Section 5726 of title 5, United States Code, is amended--
            (A) in subsection (a), by striking ``as the President may 
        by regulation authorize'' and inserting ``as authorized under 
        regulations prescribed under section 5737 of this title''; and
            (B) in subsections (b) and (c), by striking ``Under such 
        regulations as the President may prescribe'' each place it 
        appears and inserting ``under regulations prescribed under 
        section 5737 of this title''.
    (6) Section 5727(b) of title 5, United States Code, is amended by 
striking ``Under such regulations as the President may prescribe'' and 
inserting ``Under regulations prescribed under section 5737 of this 
title''.
    (7) Section 5728 of title 5, United States Code, is amended in 
subsections (a), (b), and (c)(1), by striking ``Under such regulations 
as the President may prescribe'' each place it appears and inserting 
``Under regulations prescribed under section 5737 of this title''.
    (8) Section 5729 of title 5, United States Code, is amended in 
subsections (a) and (b), by striking ``Under such regulations as the 
President may prescribe'' each place it appears and inserting ``Under 
regulations prescribed under section 5737 of this title''.
    (9) Section 5731 of title 5, United States Code, is amended by 
striking ``in accordance with regulations prescribed by the President'' 
and inserting ``in accordance with regulations prescribed under section 
5737 of this title''.

SEC. 1433. REPORT ON ASSESSMENT OF COST SAVINGS.

    No later than 1 year after the effective date of the final 
regulations issued under section 1434(b), the General Accounting Office 
shall submit a report to the Committee on Governmental Affairs of the 
Senate and the Committee on Government Reform and Oversight of the 
House of Representatives on an assessment of the cost savings to 
Federal travel administration resulting from statutory and regulatory 
changes under this Act.

SEC. 1434. EFFECTIVE DATE; ISSUANCE OF REGULATIONS.

    (a) Effective Date.--The amendments made by this title shall take 
effect upon the expiration of the 180-day period beginning on the date 
of the enactment of this Act.
    (b) Regulations.--The Administrator of General Services shall issue 
final regulations implementing the amendments made by this title by not 
later than the expiration of the period referred to in subsection (a).

            Passed the Senate July 10, 1996.

            Attest:

                                                             Secretary.
104th CONGRESS

  2d Session

                                S. 1762

_______________________________________________________________________

                                 AN ACT

     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.

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