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‘‘(b) CONSIDERATION OF NEW SCHOOL OPENINGS AND
CONSOLIDATIONS.—In carrying out subsection (a), the Sec-
retary shall take into consideration openings of new schools,
consolidations of schools, and the desirability of continuing
the opportunity for participation in the Corps by partici-
pants whose continued participation would otherwise be ad-
versely affected by new school openings and consolidations
of schools.
‘‘(c) FUNDING.—If amounts available for the Junior
Reserve Officers’ Training Corps are insufficient for taking
actions considered necessary by the Secretary under sub-
section (a), the Secretary shall seek additional funding for
units from the local educational administration agencies
concerned.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following:
‘‘2032. Responsibility of the Secretary of Defense.’’.
Subtitle D—Decorations and
Awards
SEC. 531. CLARIFICATION OF ELIGIBILITY OF MEMBERS OF
READY RESERVE FOR AWARD OF SERVICE
MEDAL FOR HEROISM.
(a) SOLDIER’S MEDAL.—Section 3750(a) of title 10,
United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and
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(2) by adding at the end the following new para-
graph:
‘‘(2) The authority in paragraph (1) includes author-
ity to award the medal to a member of the Ready Reserve
who was not in a duty status defined in section 101(d) of
this title when the member distinguished himself by hero-
ism.’’.
(b) NAVY AND MARINE CORPS MEDAL.—Section 6246
of such title is amended—
(1) by designating the text of the section as sub-
section (a); and
(2) by adding at the end the following new sub-
section:
‘‘(b) The authority in subsection (a) includes authority
to award the medal to a member of the Ready Reserve who
was not in a duty status defined in section 101(d) of this
title when the member distinguished himself by heroism.’’.
(c) AIRMAN’S MEDAL.—Section 8750(a) of such title
is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) The authority in paragraph (1) includes author-
ity to award the medal to a member of the Ready Reserve
who was not in a duty status defined in section 101(d) of
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this title when the member distinguished himself by hero-
ism.’’.
SEC. 532. WAIVER OF TIME LIMITATIONS FOR AWARD OF
CERTAIN DECORATIONS TO SPECIFIED PER-
SONS.
(a) WAIVER OF TIME LIMITATION.—Any limitation es-
tablished by law or policy for the time within which a rec-
ommendation for the award of a military decoration or
award must be submitted shall not apply in the case of
awards of decorations described in subsections (b), (c), and
(d), the award of each such decoration having been deter-
mined by the Secretary of the military department con-
cerned to be warranted in accordance with section 1130 of
title 10, United States Code.
(b) SILVER STAR MEDAL.—Subsection (a) applies to
the award of the Silver Star Medal as follows:
(1) To Joseph M. Moll, Jr. of Milford, New Jer-
sey, for service during World War II.
(2) To Philip Yolinsky of Hollywood, Florida,
for service during the Korean Conflict.
(c) NAVY AND MARINE CORPS MEDAL.—Subsection (a)
applies to the award of the Navy and Marine Corps Medal
to Gary A. Gruenwald of Damascus, Maryland, for service
in Tunisia in October 1977.
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(d) DISTINGUISHED FLYING CROSS.—Subsection (a)
applies to awards of the Distinguished Flying Cross for
service during World War II or Korea (including multiple
awards to the same individual) in the case of each individ-
ual concerning whom the Secretary of the Navy (or an offi-
cer of the Navy acting on behalf of the Secretary) submitted
to the Committee on National Security of the House of Rep-
resentatives and the Committee on Armed Services of the
Senate, before the date of the enactment of this Act, a notice
as provided in section 1130(b) of title 10, United States
Code, that the award of the Distinguished Flying Cross to
that individual is warranted and that a waiver of time re-
strictions prescribed by law for recommendation for such
award is recommended.
SEC. 533. ONE-YEAR EXTENSION OF PERIOD FOR RECEIPT
OF RECOMMENDATIONS FOR DECORATIONS
AND AWARDS FOR CERTAIN MILITARY INTEL-
LIGENCE PERSONNEL.
Section 523(b)(1) of the National Defense Authoriza-
tion Act for Fiscal Year 1996 (Public Law 104–106; 110
Stat. 311; 10 U.S.C. 1130 note) is amended by striking out
‘‘during the one-year period beginning on the date of the
enactment of this Act’’ and inserting in lieu thereof ‘‘after
February 9, 1996, and before February 10, 1998’’.
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SEC. 534. ELIGIBILITY OF CERTAIN WORLD WAR II MILI-
TARY ORGANIZATIONS FOR AWARD OF UNIT
DECORATIONS.
(a) AUTHORITY.—A unit decoration may be awarded
for any unit or other organization of the Armed Forces of
the United States, such as the Military Intelligence Service
of the Army, that (1) supported the planning or execution
of combat operations during World War II primarily
through unit personnel who were attached to other units
of the Armed Forces or of other allied armed forces, and
(2) is not otherwise eligible for award of the decoration by
reason of not usually having been deployed as a unit in
support of such operations.
(b) TIME FOR SUBMISSION OF RECOMMENDATION.—
Any recommendation for award of a unit decoration under
subsection (a) shall be submitted to the Secretary concerned
(as defined in section 101(a)(9) of title 10, United States
Code), or to such other official as the Secretary concerned
may designate, not later than 2 years after the date of the
enactment of this Act.
SEC. 535. RETROACTIVITY OF MEDAL OF HONOR SPECIAL
PENSION.
(a) ENTITLEMENT.—In the case of Vernon J. Baker,
Edward A. Carter, Junior, and Charles L. Thomas, who
were awarded the Medal of Honor pursuant to section 561
of Public Law 104–201 (110 Stat. 2529) and whose names
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have been entered and recorded on the Army, Navy, Air
Force, and Coast Guard Medal of Honor Roll, the entitle-
ment of those persons to the special pension provided under
section 1562 of title 38, United States Code (and antecedent
provisions of law), shall be effective as follows:
(1) In the case of Vernon J. Baker, for months
that begin after April 1945.
(2) In the case of Edward A. Carter, Junior, for
months that begin after March 1945.
(3) In the case of Charles L. Thomas, for months
that begin after December 1944.
(b) AMOUNT.—The amount of the special pension pay-
able under subsection (a) for a month beginning before the
date of the enactment of this Act shall be the amount of
the special pension provided by law for that month for per-
sons entered and recorded on the Army, Navy, Air Force,
and Coast Guard Medal of Honor Roll (or an antecedent
Medal of Honor Roll required by law).
(c) PAYMENT TO NEXT OF KIN.—In the case of a per-
son referred to in subsection (a) who died before receiving
full payment of the pension pursuant to this section, the
Secretary of Veterans Affairs shall pay the total amount
of the accrued pension, upon receipt of application for pay-
ment within one year after the date of the enactment of
this Act, to the deceased person’s spouse or, if there is no
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surviving spouse, then to the deceased person’s children, per
stirpes, in equal shares.
SEC. 536. COLD WAR SERVICE MEDAL.
(a) AUTHORITY.—Chapter 57 of title 10, United States
Code, is amended by adding at the end the following:
‘‘§ 1131. Cold War service medal
‘‘(a) MEDAL REQUIRED.—The Secretary concerned
shall issue the Cold War service medal to persons eligible
to receive the medal under subsection (b). The Cold War
service medal shall be of an appropriate design approved
by the Secretary of Defense, with ribbons, lapel pins, and
other appurtenances.
‘‘(b) ELIGIBLE PERSONS.—The following persons are
eligible to receive the Cold War service medal:
‘‘(1) A person who—
‘‘(A) performed active duty or inactive duty
training as an enlisted member of an armed
force during the Cold War;
‘‘(B) completed the initial term of enlist-
ment;
‘‘(C) after the expiration of the initial term
of enlistment, reenlisted in an armed force for an
additional term or was appointed as a commis-
sioned officer or warrant officer in an armed
force; and
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‘‘(D) has not received a discharge less favor-
able than an honorable discharge or a release
from active duty with a characterization of serv-
ice less favorable than honorable.
‘‘(2) A person who—
‘‘(A) performed active duty or inactive duty
training as a commissioned officer or warrant
office in an armed force during the Cold War;
‘‘(B) completed the initial service obligation
as an officer;
‘‘(C) served in the armed forces after com-
pleting the initial service obligation; and
‘‘(D) has not been released from active duty
with a characterization of service less favorable
than honorable and has not received a discharge
less favorable than an honorable discharge.
‘‘(c) ONE AWARD AUTHORIZED.—Not more than one
Cold War service medal may be issued to any one person.
‘‘(d) ISSUANCE TO REPRESENTATIVE OF DECEASED.—
If a person referred to in subsection (b) dies before being
issued the Cold War service medal, the medal may be issued
to the person’s representative, as designated by the Sec-
retary concerned.
‘‘(e) REPLACEMENT.—Under regulations prescribed by
the Secretary concerned, a Cold War service medal that is
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lost, destroyed, or rendered unfit for use without fault or
neglect on the part of the person to whom it was issued
may be replaced without charge.
‘‘(f) UNIFORM REGULATIONS.—The Secretary of De-
fense shall ensure that regulations prescribed by the Sec-
retaries of the military departments under this section are
uniform so far as is practicable.
‘‘(g) DEFINITIONS.—In this section, the term ‘Cold
War’ means the period beginning on August 15, 1974, and
terminating at the end of December 21, 1991.’’.
(b) CLERICAL AMENDMENTS.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following:
‘‘Sec. 1131. Cold War service medal.’’.
Subtitle E—Military Personnel
Voting Rights
SEC. 541. SHORT TITLE.
This subtitle may be cited as the ‘‘Military Voting
Rights Act of 1997’’.
SEC. 542. GUARANTEE OF RESIDENCY.
Article VII of the Soldiers’ and Sailors’ Civil Relief
Act of 1940 (50 U.S.C. App. 590 et seq.) is amended by
adding at the end the following:
‘‘SEC. 704. (a) For purposes of voting for an office of
the United States or of a State, a person who is absent from
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a State in compliance with military or naval orders shall
not, solely by reason of that absence—
‘‘(1) be deemed to have lost a residence or domi-
cile in that State;
‘‘(2) be deemed to have acquired a residence or
domicile in any other State; or
‘‘(3) be deemed to have become resident in or a
resident of any other State.
‘‘(b) In this section, the term ‘State’ includes a terri-
tory or possession of the United States, a political subdivi-
sion of a State, territory, or possession, and the District
of Columbia.’’.
SEC. 543. STATE RESPONSIBILITY TO GUARANTEE MILI-
TARY VOTING RIGHTS.
(a) REGISTRATION AND BALLOTING.—Section 102 of
the Uniformed and Overseas Absentee Voting Act (42 U.S.C.
1973ff–1) is amended—
(1) by inserting ‘‘(a) ELECTIONS FOR FEDERAL
OFFICES.—’’ before ‘‘Each State shall—’’; and
(2) by adding at the end the following:
‘‘(b) ELECTIONS FOR STATE AND LOCAL OFFICES.—
Each State shall—
‘‘(1) permit absent uniformed services voters to
use absentee registration procedures and to vote by
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absentee ballot in general, special, primary, and run-
off elections for State and local offices; and
‘‘(2) accept and process, with respect to any elec-
tion described in paragraph (1), any otherwise valid
voter registration application from an absent uni-
formed services voter if the application is received by
the appropriate State election official not less than 30
days before the election.’’.
(b) CONFORMING AMENDMENT.—The heading for title
I of such Act is amended by striking out ‘‘FOR FED-
ERAL OFFICE’’.
Subtitle F—Other Matters
SEC. 551. SENSE OF CONGRESS REGARDING STUDY OF MAT-
TERS RELATING TO GENDER EQUITY IN THE
ARMED FORCES.
(a) FINDINGS.—Congress makes the following findings:
(1) In the all-volunteer force, women play an in-
tegral role in the Armed Forces.
(2) With increasing numbers of women in the
Armed Forces, questions arise concerning inequalities,
and perceived inequalities, between the treatment of
men and women in the Armed Forces.
(b) SENSE OF CONGRESS.—It is the sense of Congress
that the Comptroller General should—
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(1) conduct a study on any inequality, or per-
ception of inequality, in the treatment of men and
women in the Armed Forces that arises out of the
statutes and regulations governing the Armed Forces;
and
(2) submit to Congress a report on the study not
later than one year after the date of enactment of this
Act.
SEC. 552. COMMISSION ON GENDER INTEGRATION IN THE
MILITARY.
(a) ESTABLISHMENT.—There is established a commis-
sion to be known as the Commission on Gender Integration
in the Military.
(b) MEMBERSHIP.—
(1) IN GENERAL.—The commission shall be com-
posed of 11 members appointed from among private
citizens of the United States who have appropriate
and diverse experiences, expertise, and historical per-
spectives on training, organizational, legal, manage-
ment, military, and gender integration matters.
(2) SPECIFIC QUALIFICATIONS.—Of the 11 mem-
bers, at least two shall be appointed from among per-
sons who have superior academic credentials, at least
four shall be appointed from among former members
and retired members of the Armed Forces, and at
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least two shall be appointed from among members of
the reserve components of the Armed Forces.
(c) APPOINTMENTS.—
(1) AUTHORITY.—The President pro tempore of
the Senate shall appoint the members in consultation
with the chairman of the Committee on Armed Serv-
ices, who shall recommend six persons for appoint-
ment, and the ranking member of the Committee on
Armed Services, who shall recommend five persons for
appointment. The appointments shall be made not
later than 45 days after the date of the enactment of
this Act.
(2) PERIOD OF APPOINTMENT.—Members shall be
appointed for the life of the commission.
(3) VACANCIES.—A vacancy in the membership
shall not affect the commission’s powers, but shall be
filled in the same manner as the original appoint-
ment.
(d) MEETINGS.—
(1) INITIAL
MEETING.—The Commission shall
hold its first meeting not later than 30 days after the
date on which all members have been appointed.
(2) WHEN CALLED.—The Commission shall meet
upon the call of the chairman.
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(3) QUORUM.—A majority of the members of the
Commission shall constitute a quorum, but a lesser
number may hold meetings.
(e) CHAIRMAN AND VICE CHAIRMAN.—The Commis-
sion shall select a chairman and a vice chairman from
among its members.
(f) AUTHORITY OF INDIVIDUALS TO ACT FOR COMMIS-
SION.—Any member or agent of the Commission may, if
authorized, by the Commission, take any action which the
Commission is authorized to take under this title.
(g) DUTIES.—The Commission shall—
(1) review the current practices of the Armed
Forces, relevant studies, and private sector training
concepts pertaining to gender-integrated training;
(2) review the laws, regulations, policies, direc-
tives, and practices that govern personal relationships
between men and women in the armed forces and per-
sonal relationships between members of the armed
forces and non-military personnel of the opposite sex;
(3) assess the extent to which the laws, regula-
tions, policies, and directives have been applied con-
sistently throughout the Armed Forces without regard
to the armed force, grade, or rank of the individuals
involved;
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(4) provide an independent assessment of the re-
ports of the independent panel, the Department of De-
fense task force, and the review of existing guidance
on adultery announced by the Secretary of Defense;
and
(5) examine the experiences, policies, and prac-
tices of the armed forces of other industrialized na-
tions regarding gender-integrated training.
(h) REPORTS.—
(1) INITIAL REPORT.—Not later than April 15,
1998, the Commission shall submit to the Committee
on Armed Services of the Senate an initial report set-
ting forth the activities, findings, and recommenda-
tions of the Commission. The report shall include any
recommendations for congressional action and admin-
istrative action that the Commission considers appro-
priate.
(2) FINAL REPORT.—Not later than September
16, 1998, the Commission shall submit to the Com-
mittee on Armed Services a final report setting forth
the activities, findings, and recommendations of the
Commission, including any recommendations for con-
gressional action and administrative action that the
Commission considers appropriate.
(i) POWERS.—
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(1) HEARINGS, ET
CETERA.—The Commission
may hold such hearings, sit and act at such times
and places, take such testimony, and receive such evi-
dence as the Commission considers advisable to carry
out its duties.
(2) INFORMATION FROM FEDERAL AGENCIES.—
The Commission may secure directly from the De-
partment of Defense and any other department or
agency of the Federal Government such information
as the Commission considers necessary to carry out
its duties. Upon the request of the chairman of the
Commission, the head of a department or agency shall
furnish the requested information expeditiously to the
Commission.
(3) POSTAL SERVICES.— The Commission may
use the United States mails in the same manner and
under the same conditions as other departments and
agencies of the Federal Government.
(j) ADMINISTRATIVE SUPPORT.—The Secretary of De-
fense shall, upon the request of the chairman of the Commis-
sion, furnish the Commission any administrative and sup-
port services that the Commission may require.
(k) COMMISSION PERSONNEL MATTERS.—
(1) COMPENSATION OF MEMBERS.—Each mem-
ber of the Commission may be compensated at a rate
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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 performing the du-
ties of the Commission.
(2) TRAVEL ON MILITARY CONVEYANCES.—Mem-
bers and personnel of the Commission may travel on
aircraft, vehicles, or other conveyances of the Armed
Forces when travel is necessary in the performance of
a duty of the Commission except when the cost of
commercial transportation is less expensive.
(3) TRAVEL
EXPENSES.—The members of the
Commission may be allowed travel expenses, includ-
ing per diem in lieu of subsistence, at rates author-
ized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away
from their homes or regular places of business in the
performance of services for the Commission.
(4) STAFF.—The chairman of the Commission
may, without regard to civil service laws and regula-
tions, appoint and terminate an executive director
and up to three additional staff members as necessary
to enable the Commission to perform its duties. The
chairman of the Commission may fix the compensa-
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tion of the executive director and other personnel
without regard to the provisions of chapter 51, and
subchapter III of chapter 53, of title 5, United States
Code, relating to classification of positions and Gen-
eral Schedule pay rates, except that the rate of pay
may not exceed the rate payable for level V of the ex-
ecutive schedule under section 5316 of such title.
(5) DETAIL
OF
GOVERNMENT
EMPLOYEES.—
Upon the request of the chairman of the Commission,
the head of any department or agency of the Federal
Government may detail, without reimbursement, any
personnel of the department or agency to the Commis-
sion to assist in carrying out its duties. A detail of
an employee shall be without interruption or loss of
civil service status or privilege.
(6) TEMPORARY
AND
INTERMITTENT
SERV-
ICES.—The chairman of the Commission may procure
temporary and intermittent services under section
3109(b) of title 5, United States Code, at rates for in-
dividuals that do not exceed the daily equivalent of
the annual rate of basic pay prescribed for level IV
of the Executive Schedule under section 5315 of such
title.
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(l) TERMINATION.—The Commission shall terminate
90 days after the date on which it submits the final report
under subsection (h)(2).
(m) FUNDING.—
(1) FROM
DEPARTMENT
OF
DEFENSE
APPRO-
PRIATIONS.—Upon the request of the chairman of the
Commission, the Secretary of Defense shall make
available to the Commission, out of funds appro-
priated for the Department of Defense, such amounts
as the Commission may require to carry out its du-
ties.
(2) PERIOD
OF
AVAILABILITY.—Funds made
available to the Commission shall remain available,
without fiscal year limitation, until the date on
which the Commission terminates.
SEC. 553. SEXUAL HARASSMENT INVESTIGATIONS AND RE-
PORTS.
(a) INVESTIGATIONS.—Any commanding officer or of-
ficer in charge of a unit, vessel, facility, or area who receives
from a member of the command or a civilian employee
under the supervision of the officer a complaint alleging
sexual harassment by a member of the Armed Forces or a
civilian employee of the Department of Defense shall, to the
extent practicable—
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(1) within 72 hours after receipt of the com-
plaint—
(A) forward the complaint or a detailed de-
scription of the allegation to the next superior of-
ficer in the chain of command who is authorized
to convene a general court-martial;
(B) commence, or cause the commencement
of, an investigation of the complaint; and
(C) advise the complainant of the com-
mencement of the investigation;
(2) ensure that the investigation of the complaint
is completed not later than 14 days after the inves-
tigation is commenced; and
(3) either—
(A) submit a final report on the results of
the investigation, including any action taken as
a result of the investigation, to the next superior
officer referred to in paragraph (1) within 20
days after the investigation is commenced; or
(B) submit a report on the progress made
in completing the investigation to the next supe-
rior officer referred to in paragraph (1) within
20 days after the investigation is commenced
and every 14 days thereafter until the investiga-
tion is completed and, upon completion of the in-
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vestigation, then submit a final report on the re-
sults of the investigation, including any action
taken as a result of the investigation, to that
next superior officer.
(b) REPORTS.—(1) Not later than January 1 of each
of 1998 and 1999, each officer receiving any complaint for-
warded in accordance with subsection (a) during the pre-
ceding year shall submit to the Secretary of the military
department concerned a report on all such complaints and
the investigations of such complaints (including the results
of the investigations, in cases of investigations completed
during such preceding year).
(2)(A) Not later than March 1 of each of 1998 and
1999, each Secretary receiving a report under paragraph
(1) for a year shall submit to the Secretary of Defense a
report on all such reports so received.
(B) Not later than the April 1 following receipt of a
report for a year under subparagraph (A), the Secretary
of Defense shall transmit to Congress all such reports re-
ceived for the year under subparagraph (A) together with
the Secretary’s assessment of each such report.
(c) SEXUAL HARASSMENT DEFINED.—In this section,
the term ‘‘sexual harassment’’ means—
(1) a form of sex discrimination that—
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(A) involves unwelcome sexual advances, re-
quests for sexual favors, and other verbal or
physical conduct of a sexual nature when—
(i) submission to such conduct is made
either explicitly or implicitly a term or con-
dition of a person’s job, pay, or career;
(ii) submission to or rejection of such
conduct by a person is used as a basis for
career or employment decisions affecting
that person; or
(iii) such conduct has the purpose or
effect of unreasonably interfering with an
individual’s work performance or creates an
intimidating, hostile, or offensive working
environment; and
(B) is so severe or pervasive that a reason-
able person would perceive, and the victim does
perceive, the work environment as hostile or of-
fensive;
(2) any use or condonation, by any person in a
supervisory or command position, of any form of sex-
ual behavior to control, influence, or affect the career,
pay, or job of a member of the Armed Forces or a ci-
vilian employee of the Department of Defense; and
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(3) any deliberate or repeated unwelcome verbal
comment, gesture, or physical contact of a sexual na-
ture in the workplace by any member of the Armed
Forces or civilian employee of the Department of De-
fense.
SEC. 554. REQUIREMENT FOR EXEMPLARY CONDUCT BY
COMMANDING OFFICERS AND OTHER AU-
THORITIES.
(a) ARMY.—(1) Chapter 345 of title 10, United States
Code, is amended by adding at the end:
‘‘§ 3583. Requirement of exemplary conduct
‘‘All commanding officers and others in authority in
the Army are required to show in themselves a good example
of virtue, honor, patriotism, and subordination; to be vigi-
lant in inspecting the conduct of all persons who are placed
under their command; to guard against and suppress all
dissolute and immoral practices, and to correct, according
to the laws and regulations of the Army, all persons who
are guilty of them; and to take all necessary and proper
measures, under the laws, regulations, and customs of the
Army, to promote and safeguard the morale, the physical
well-being, and the general welfare of the officers and en-
listed persons under their command or charge.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following:
‘‘3583. Requirement of exemplary conduct.’’.
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(b) AIR FORCE.—(1) Chapter 845 of title 10, United
States Code, is amended by adding at the end the following:
‘‘§ 8583. Requirement of exemplary conduct
‘‘All commanding officers and others in authority in
the Air Force are required to show in themselves a good
example of virtue, honor, patriotism, and subordination; to
be vigilant in inspecting the conduct of all persons who are
placed under their command; to guard against and sup-
press all dissolute and immoral practices, and to correct,
according to the laws and regulations of the Air Force, all
persons who are guilty of them; and to take all necessary
and proper measures, under the laws, regulations, and cus-
toms of the Air Force, to promote and safeguard the morale,
the physical well-being, and the general welfare of the offi-
cers and enlisted persons under their command or charge.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following:
‘‘8583. Requirement of exemplary conduct.’’.
SEC. 555. PARTICIPATION OF DEPARTMENT OF DEFENSE
PERSONNEL IN MANAGEMENT OF NON-FED-
ERAL ENTITIES.
(a) AUTHORITY.—Chapter 53 of title 10, United States
Code, is amended by inserting after section 1060a the fol-
lowing new section:
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‘‘§ 1060b. Participation in management of non-Federal
entities: members of the armed forces; ci-
vilian employees
‘‘(a) AUTHORITY TO PERMIT PARTICIPATION.—The
Secretary concerned may authorize a member of the armed
forces, a civilian officer or employee of the Department of
Defense, or a civilian officer or civilian employee of the
Coast Guard—
‘‘(1) to serve as a director, officer, or trustee of
a military welfare society or other entity described in
subsection (c); or
‘‘(2) to participate in any other capacity in the
management of such a society or entity.
‘‘(b) 
COMPENSATION
PROHIBITED.—Compensation
may not be accepted for service or participation authorized
under subsection (a).
‘‘(c) COVERED ENTITIES.—This section applies with
respect to the following entities:
‘‘(1) MILITARY WELFARE SOCIETIES.—The fol-
lowing military welfare societies:
‘‘(A) The Army Emergency Relief.
‘‘(B) The Air Force Aid Society.
‘‘(C) The Navy-Marine Corps Relief Society.
‘‘(D) The Coast Guard Mutual Assistance.
‘‘(2) OTHER ENTITIES.—Each of the following
additional entities that is not operated for profit:
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‘‘(A) Any athletic conference, or other en-
tity, that regulates and supports the athletics
programs of the United States Military Acad-
emy, the United States Naval Academy, the
United States Air Force Academy, or the United
States Coast Guard Academy.
‘‘(B) Any entity that regulates inter-
national athletic competitions.
‘‘(C) Any regional educational accrediting
agency, or other entity, that accredits the acad-
emies referred to in subparagraph (A) or accred-
its any other school of the armed forces.
‘‘(D) Any health care association, profes-
sional society, or other entity that regulates and
supports standards and policies applicable to the
provision of health care by or for the Department
of Defense.
‘‘(d) SECRETARY OF DEFENSE AS SECRETARY CON-
CERNED.—In this section, the term ‘Secretary concerned’
includes the Secretary of Defense with respect to civilian
officers and employees of the Department of Defense who
are not officers or employees of a military department.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by inserting after
the item relating to section 1060a the following new item:
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‘‘1060b. Participation in management of non-Federal entities: members of the
armed forces; civilian employees.’’.
SEC. 556. TECHNICAL CORRECTION TO CROSS REFERENCE
IN ROPMA PROVISION RELATING TO POSI-
TION VACANCY PROMOTION.
Section 14317(d) of title 10, United States Code, is
amended by striking out ‘‘section 14314’’ in the first sen-
tence and inserting in lieu thereof ‘‘section 14315’’.
SEC. 557. GRADE OF DEFENSE ATTACHE IN FRANCE.
The Secretary of Defense and the Chairman of the
Joint Chiefs of Staff shall take actions appropriate to en-
sure that each officer selected for assignment to the position
of defense attache in France is an officer who holds, or is
promotable to, the grade of brigadier general or, in the case
of the Navy, rear admiral (lower half).
TITLE VI—COMPENSATION AND
OTHER PERSONNEL BENEFITS
Subtitle A—Pay
SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1998.
(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
1998 shall not be made.
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(b) INCREASE IN BASIC PAY.—Effective on January
1, 1998, the rates of basic pay of members of the uniformed
services are increased by 2.8 percent.
Subtitle B—Subsistence, Housing,
and Other Allowances
PART I—REFORM OF BASIC ALLOWANCE FOR
SUBSISTENCE
SEC. 611. REVISED ENTITLEMENT AND RATES.
(a) UNIVERSAL ENTITLEMENT TO BAS EXCEPT DUR-
ING BASIC TRAINING.—
(1) IN GENERAL.—Section 402 of title 37, Unit-
ed States Code, is amended by striking out subsections
(b) and (c).
(2) EXCEPTION.—Subsection (a) of such section
is amended by adding at the end the following: ‘‘How-
ever, an enlisted member is not entitled to the basic
allowance for subsistence during basic training.’’.
(b) RATES BASED ON FOOD COSTS.—Such section, as
amended by subsection (a), is further amended by inserting
after subsection (a) the following new subsection (b):
‘‘(b) RATES OF BAS.—(1) The monthly rate of basic
allowance for subsistence in effect for an enlisted member
for a year (beginning on January 1 of the year) shall be
the amount that is halfway between the following amounts
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that are determined by the Secretary of Agriculture as of
October 1 of the preceding year:
‘‘(A) The amount equal to the monthly cost of a
moderate-cost food plan for a male in the United
States who is between 20 and 50 years of age.
‘‘(B) The amount equal to the monthly cost of a
liberal food plan for a male in the United States who
is between 20 and 50 years of age.
‘‘(2) The monthly rate of basic allowance for subsist-
ence in effect for an officer for a year (beginning on Janu-
ary 1 of the year) shall be the amount equal to the monthly
rate of basic allowance for subsistence in effect for officers
for the preceding year, increased by the same percentage
by which the rate of basic allowance for subsistence for en-
listed members for the preceding year is increased effective
on such January 1.’’.
(c) CONTINUATION OF ADVANCE PAYMENT AUTHOR-
ITY.—Such section is further amended by inserting after
subsection (b), as added by subsection (b) of this section,
the following new subsection (c):
‘‘(c) ADVANCE PAYMENT.—The allowance to an en-
listed member may be paid in advance for a period of not
more than three months.’’.
(d) FLEXIBILITY TO MANAGE DEMAND FOR DINING
AND MESSING SERVICES.—Such section is further amended
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by striking out subsection (e) and inserting in lieu thereof
the following new subsection (e):
‘‘(e) POLICIES ON USE OF DINING AND MESSING FA-
CILITIES.—The Secretary of Defense, in consultation with
the Secretaries concerned, shall prescribe policies regarding
use of dining and field messing facilities of the uniformed
services.’’.
(e) REGULATIONS.—Such section is further amended
by adding after subsection (e), as added by subsection (d)
of this section, the following:
‘‘(f) REGULATIONS.—(1) The Secretary of Defense
shall prescribe regulations for the administration of this
section. Before prescribing the regulations, the Secretary
shall consult with each Secretary concerned.
‘‘(2) The regulations shall include the rates of basic
allowance for subsistence.’’.
(f) STYLISTIC AND CONFORMING AMENDMENTS.—
(1) SUBSECTION
HEADINGS.—Such section is
amended—
(A) in subsection (a), by inserting ‘‘ENTI-
TLEMENT.—’’ after ‘‘(a)’’; and
(B) in subsection (d), by inserting ‘‘COAST
GUARD.—’’ after ‘‘(d)’’.
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(2) TRAVEL
STATUS
EXCEPTION
TO
ENTITLE-
MENT.—Section 404 of title 37, United States Code,
is amended—
(A) by striking out subsection (g); and
(B) by redesignating subsections (h), (i), (j),
and (k) as subsections (g), (h), (i), and (j), re-
spectively.
SEC. 612. TRANSITIONAL BASIC ALLOWANCE FOR SUBSIST-
ENCE.
(a) BAS TRANSITION PERIOD.—For the purposes of
this section, the BAS transition period is the period begin-
ning on the effective date of this part and ending on the
date that this section ceases to be effective under section
613(b).
(b) TRANSITIONAL AUTHORITY.—Notwithstanding sec-
tion 402 of title 37, United States Code (as amended by
section 611), during the BAS transition period—
(1) the basic allowance for subsistence shall not
be paid under that section for that period;
(2) a member of the uniformed services is enti-
tled to the basic allowance for subsistence only as pro-
vided in subsection (c);
(3) an enlisted member of the uniformed services
may be paid a partial basic allowance for subsistence
as provided in subsection (d); and
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(4) the rates of the basic allowance for subsist-
ence are those determined under subsection (e).
(c) TRANSITIONAL ENTITLEMENT TO BAS.—
(1) ENLISTED MEMBERS.—
(A) TYPES OF ENTITLEMENT.—An enlisted
member is entitled to the basic allowance for sub-
sistence, on a daily basis, of one of the following
types—
(i) when rations in kind are not avail-
able;
(ii) when permission to mess sepa-
rately is granted; and
(iii) when assigned to duty under
emergency conditions where no messing fa-
cilities of the United States are available.
(B) 
OTHER
ENTITLEMENT
CIRCUM-
STANCES.—An enlisted member is entitled to the
allowance while on an authorized leave of ab-
sence, while confined in a hospital, or while per-
forming travel under orders away from the mem-
ber’s designated post of duty other than field
duty or sea duty (as defined in regulations pre-
scribed by the Secretary of Defense). For pur-
poses of the preceding sentence, a member shall
not be considered to be performing travel under
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orders away from his designated post of duty if
such member—
(i) is an enlisted member serving his
first tour of active duty;
(ii) has not actually reported to a per-
manent duty station pursuant to orders di-
recting such assignment; and
(iii) is not actually traveling between
stations pursuant to orders directing a
change of station.
(C) ADVANCE PAYMENT.—The allowance to
an enlisted member, when authorized, may be
paid in advance for a period of not more than
three months.
(2) OFFICERS.—An officer of a uniformed service
who is entitled to basic pay is, at all times, entitled
to the basic allowances for subsistence. An aviation
cadet of the Navy, Air Force, Marine Corps, or Coast
Guard is entitled to the same basic allowance for sub-
sistence as is provided for an officer of the Navy, Air
Force, Marine Corps, or Coast Guard, respectively.
(d) TRANSITIONAL AUTHORITY FOR PARTIAL BAS.—
(1) ENLISTED MEMBERS FURNISHED SUBSIST-
ENCE IN KIND.—The Secretary of Defense may pro-
vide in regulations for an enlisted member of a uni-
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formed service to be paid a partial basic allowance
for subsistence when—
(A) rations in kind are available to the
member;
(B) the member is not granted permission
to mess separately; or
(C) the member is assigned to duty under
emergency conditions where messing facilities of
the United States are available.
(2) MONTHLY PAYMENT.—Any partial basic al-
lowance for subsistence authorized under paragraph
(1) shall be paid on a monthly basis.
(e) TRANSITIONAL RATES.—
(1) FULL BAS FOR OFFICERS.—The rate of basic
allowance for subsistence that is payable to officers of
the uniformed services for a year shall be the amount
that is equal to 101 percent of the rate of basic allow-
ance for subsistence that was payable to officers of the
uniformed services for the preceding year.
(2) FULL BAS FOR ENLISTED MEMBERS.—The
rate of basic allowance for subsistence that is payable
to an enlisted member of the uniformed services for a
year shall be the higher of—
(A) the amount that is equal to 101 percent
of the rate of basic allowance for subsistence that
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was in effect for similarly situated enlisted mem-
bers of the uniformed services for the preceding
year; or
(B) the daily equivalent of what, except for
subsection (b), would otherwise be the monthly
rate of basic allowance for subsistence for en-
listed members under section 402(b)(1) of title
37, United States Code (as added by section
611(b)).
(3) PARTIAL BAS FOR ENLISTED MEMBERS.—The
rate of any partial basic allowance for subsistence
paid under subsection (d) for a member for a year
shall be equal to the lower of—
(A) the amount equal to the excess, if any,
of—
(i) the amount equal to the monthly
equivalent of the rate of basic allowance for
subsistence that was in effect for the preced-
ing year for enlisted members of the uni-
formed services above grade E–1 (when per-
mission to mess separately is granted), in-
creased by the same percent by which the
rates of basic pay for members of the uni-
formed services were increased for the year
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over those in effect for such preceding year,
over
(ii) the amount equal to 101 percent of
the monthly equivalent of the rate of basic
allowance for subsistence that was in effect
for the previous year for enlisted members of
the uniformed services above grade E–1
(when permission to mess separately is
granted); or
(B) the amount equal to the excess of—
(i) the amount that, except for sub-
section (b), would otherwise be the monthly
rate of basic allowance for subsistence for
enlisted members under section 402(b)(1) of
title 37, United States Code, over
(ii) the amount equal to the monthly
equivalent of the value of a daily ration, as
determined by the Under Secretary of De-
fense (Comptroller) as of October 1 of the
preceding year.
SEC. 613. EFFECTIVE DATE AND TERMINATION OF TRANSI-
TIONAL AUTHORITY.
(a) EFFECTIVE DATE.—This part and the amend-
ments made by section 611 shall take effect on January 1,
1998.
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(b) TERMINATION OF TRANSITIONAL PROVISIONS.—
Section 612 shall cease to be effective on the first day of
the month immediately following the first month for which
the monthly equivalent of the rate of basic allowance for
subsistence payable to enlisted members of the uniformed
services (when permission to mess separately is granted),
as determined under subsection (e)(2) of such section, equals
or exceeds the amount that, except for subsection (b) of such
section, would otherwise be the monthly rate of basic allow-
ance for subsistence for enlisted members under section
402(b)(1) of title 37, United States Code.
PART II—REFORM OF HOUSING AND RELATED
ALLOWANCES
SEC. 616. ENTITLEMENT TO BASIC ALLOWANCE FOR HOUS-
ING.
(a) REDESIGNATION OF BAQ.—Section 403 of title 37,
United States Code, is amended by striking out ‘‘basic al-
lowance for quarters’’ each place it appears, except in sub-
sections (f) and (m), and inserting in lieu thereof ‘‘basic
allowance for housing’’.
(b) RATES.—Subsection (a) of such section is amended
by striking out ‘‘section 1009’’ and inserting in lieu thereof
‘‘section 403a’’.
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(c) TEMPORARY HOUSING ALLOWANCE WHILE
IN
TRAVEL OR LEAVE STATUS.—Subsection (f) of such section
is amended to read as follows:
‘‘(f) TEMPORARY HOUSING ALLOWANCE WHILE
IN
TRAVEL OR LEAVE STATUS.—A member of a uniformed
service who is in pay grade above E–4 (four or more years
of service) or above is entitled to a temporary housing al-
lowance (at a rate determined under section 403a of this
title) while the member is in a travel or leave status between
permanent duty stations, including time granted as delay
en route or proceed time, when the member is not assigned
to quarters of the United States.’’.
(d) DETERMINATIONS NECESSARY FOR ADMINISTER-
ING AUTHORITY FOR ALL MEMBERS.—Subsection (h) of
such section is amended by striking out ‘‘enlisted’’ each
place it appears.
(e) ENTITLEMENT OF MEMBERS NOT ENTITLED TO
PAY.—Subsection (i) of such section is amended by striking
out ‘‘enlisted’’.
(f) TEMPORARY HOUSING AND ALLOWANCE FOR SUR-
VIVORS OF ACTIVE DUTY MEMBERS.—
(1) CONTINUATION OF OCCUPANCY.—Paragraph
(1) of subsection (l) of such section is amended by
striking out ‘‘in line of duty’’ and inserting in lieu
thereof ‘‘on active duty’’.
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(2) ALLOWANCE.—Paragraph (2) of such sub-
section is amended to read as follows:
‘‘(2)(A) The Secretary concerned may pay a basic al-
lowance for housing (at the rate determined under section
403a of this title) to the dependents of a member of the uni-
formed services who dies while on active duty and whose
dependents—
‘‘(i) are not occupying a housing facility under
the jurisdiction of a uniformed service on the date of
the member’s death;
‘‘(ii) are occupying such housing on a rental
basis on such date; or
‘‘(iii) vacate such housing sooner than 180 days
after the date of the member’s death.
‘‘(B) The payment of the allowance under this sub-
section shall terminate 180 days after the date of the mem-
ber’s death.’’.
(g) ENTITLEMENT OF MEMBER PAYING CHILD SUP-
PORT.—Subsection (m) of such section is amended to read
as follows:
‘‘(m) MEMBERS PAYING CHILD SUPPORT.—(1) A
member of a uniformed service with dependents may not
be paid a basic allowance for housing at the with depend-
ents rate solely by reason of the payment of child support
by the member if—
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‘‘(A) the member is assigned to a housing facility
under the jurisdiction of a uniformed service; or
‘‘(B) the member is in a pay grade above E–4,
is assigned to sea duty, and elects not to occupy as-
signed quarters for unaccompanied personnel.
‘‘(2) A member of a uniformed service assigned to
quarters of the United States or a housing facility under
the jurisdiction of a uniformed service who is not otherwise
authorized a basic allowance for housing and who pays
child support is entitled to the basic allowance for housing
differential (at the rate applicable under section 403a of
this title) to the members’ pay grade except for months for
which the amount payable for the child support is less than
the rate of the differential. Payment of a basic allowance
for housing differential does not affect any entitlement of
the member to a partial allowance for quarters under sub-
section (o).’’.
(h) REPLACEMENT OF VHA BY BASIC ALLOWANCE
FOR HOUSING.—
(1) MEMBERS NOT ACCOMPANIED BY DEPEND-
ENTS
OUTSIDE
CONUS.—Such section is further
amended by adding at the end the following:
‘‘(n) MEMBERS NOT ACCOMPANIED BY DEPENDENTS
OUTSIDE CONUS.—(1) A member of a uniformed service
with dependents who is assigned to an unaccompanied tour
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of duty outside the continental United States is eligible for
a 
basic 
allowance 
for 
housing 
as 
provided 
in
paragraph (2).
‘‘(2)(A) For any period during which the dependents
of a member referred to in paragraph (1) reside in the Unit-
ed States where, if the member were residing with them,
the member would be entitled to receive a basic allowance
for housing, the member is entitled to a basic allowance for
housing at the rate applicable under section 403a of this
title to the member’s pay grade and the location of the resi-
dence of the member’s dependents.
‘‘(B) A member referred to in paragraph (1) may be
paid a basic allowance for housing at the rate applicable
under section 403a of this title to the members’s pay grade
and location.
‘‘(3) Payment of a basic allowance for housing to a
member under paragraph (2)(B) shall be in addition to any
allowance or per diem to which the member otherwise may
be entitled under this title.’’.
(2) MEMBERS NOT ACCOMPANIED BY DEPEND-
ENTS
INSIDE
CONUS.—Paragraph (2) of section
403a(a) of title 37, United States Code, is transferred
to the end of section 403 of such title and, as trans-
ferred, is amended—
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(A) by striking out ‘‘(2)’’ and inserting in
lieu thereof ‘‘(o) MEMBERS NOT ACCOMPANIED
BY DEPENDENTS INSIDE CONUS.—’’;
(B) by striking out ‘‘variable housing allow-
ance’’ each place it appears and inserting in lieu
thereof ‘‘basic allowance for housing’’;
(C) by striking out ‘‘(under regulations pre-
scribed under subsection (e))’’ in the matter fol-
lowing subparagraph (B) and inserting in lieu
thereof ‘‘(under regulations prescribed by the
Secretary of Defense)’’; and
(D) by redesignating subparagraphs (A)
and (B) as paragraphs (1) and (2), respectively.
(3) REPEAL OF VHA ALLOWANCE.—Section 403a
of title 37, United States Code, is repealed.
(i) MEMBERS WITHOUT DEPENDENTS.—Section 403
of such title, as amended by subsection (f), is further amend-
ed by adding at the end the following:
‘‘(p) PARTIAL ALLOWANCE FOR MEMBERS WITHOUT
DEPENDENTS.—A member of a uniformed service without
dependents who is not entitled to receive a basic allowance
for housing under subsection (b) or (c) is entitled to a par-
tial allowance for quarters determined under section 403a
of this title.’’.
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(j) STYLISTIC AMENDMENTS.—Section 403 of title 37,
United States Code, as amended by this section, is further
amended—
(1) in subsection (a), by striking out ‘‘(a)(1)’’
and inserting in lieu thereof ‘‘(a) GENERAL ENTITLE-
MENT.—(1)’’;
(2) in subsection (b), by striking out ‘‘(b)(1)’’
and inserting in lieu thereof ‘‘(b) MEMBERS AS-
SIGNED TO QUARTERS.—(1)’’;
(3) in subsection (c), by striking out ‘‘(c)(1)’’
and inserting in lieu thereof ‘‘(c) INELIGIBILITY DUR-
ING INITIAL FIELD DUTY OR SEA DUTY.—(1)’’;
(4) in subsection (d), by striking out ‘‘(d)(1)’’
and inserting in lieu thereof ‘‘(d) PROHIBITED
GROUNDS FOR DENIAL.—(1)’’;
(5) in subsection (e), by inserting ‘‘RENTAL OF
PUBLIC QUARTERS.—’’ after ‘‘(e)’’;
(6) in subsection (g), by inserting ‘‘AVIATION CA-
DETS.—’’ after ‘‘(g)’’;
(7) in subsection (h), by inserting ‘‘NECESSARY
DETERMINATIONS.—’’ after ‘‘(h)’’;
(8) in subsection (i), by inserting ‘‘ENTITLE-
MENT OF MEMBER NOT ENTITLED TO PAY.—’’ after
‘‘(i)’’;
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(9) in subsection (j), by striking out ‘‘(j)(1)’’ and
inserting in lieu thereof ‘‘(j) ADMINISTRATIVE AU-
THORITY.—(1)’’;
(10) in subsection (k), by inserting ‘‘PARKING
FACILITIES NOT CONSIDERED QUARTERS.—’’ after
‘‘(k)’’; and
(11) in subsection (l), by striking out ‘‘(l)(1)’’
and inserting in lieu thereof ‘‘(l) DEPENDENTS OF
MEMBERS DYING ON ACTIVE DUTY.—(1)’’.
(k) SECTION HEADING.—The heading of section 403
of title 37, United States Code, is amended to read as fol-
lows:
‘‘§ 403. Basic allowance for housing: eligibility’’.
SEC. 617. RATES OF BASIC ALLOWANCE FOR HOUSING.
Chapter 7 of title 37, United States Code, is amended
by inserting after section 403 the following new section
403a:
‘‘§ 403a. Basic allowance for housing: rates
‘‘(a) RATES PRESCRIBED
BY SECRETARY
OF DE-
FENSE.—The Secretary of Defense shall prescribe monthly
rates of basic allowance for housing payable under section
403 of this title. The Secretary shall specify the rates, by
pay grade and dependency status, for each geographic area
defined in accordance with subsection (b).
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‘‘(b) GEOGRAPHIC BASIS FOR RATES.—(1) The Sec-
retary shall define the areas within the United States and
the areas outside the United States for which rates of basic
allowance for housing are separately specified.
‘‘(2) For each area within the United States that is
defined under paragraph (1), the Secretary shall determine
the costs of housing in that area that the Secretary considers
adequate for civilians residents of that area whose relevant
circumstances the Secretary considers as being comparable
to those of members of the uniformed services.
‘‘(3) For each area outside the United States defined
under paragraph (1), the Secretary shall determine the costs
of housing in that area that the Secretary considers ade-
quate for members of the uniformed services.
‘‘(c) RATES WITHIN THE UNITED STATES.—(1) Sub-
ject to paragraph (2), the monthly rate of basic allowance
for housing for members of the uniformed services of a par-
ticular grade and dependency status for an area within the
United States shall be the amount equal to the excess of—
‘‘(A) the monthly cost of housing determined ap-
plicable for members of that grade and dependency
status for that area under subsection (b), over
‘‘(B) the amount equal to 15 percent of the aver-
age of the monthly costs of housing determined appli-
cable for members of the uniformed services of that
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grade and dependency status for all areas of the Unit-
ed States under subsection (b).
‘‘(2) The rates of basic allowance for housing deter-
mined under paragraph (1) shall be reduced as necessary
to comply with subsection (g).
‘‘(d) RATES OUTSIDE
THE UNITED STATES.—The
monthly rate of basic allowance for housing for members
of the uniformed services of a particular grade and depend-
ency status for an area outside the United States shall be
an amount appropriate for members of the uniformed serv-
ices of that grade and dependency status for that area, as
determined by the Secretary on the basis of the costs of hous-
ing in that area.
‘‘(e) ADJUSTMENTS WHEN RATES OF BASIC PAY IN-
CREASED.—The Secretary of Defense shall periodically re-
determine the housing costs for areas under subsection (b)
and adjust the rates of basic allowance for housing as ap-
propriate on the basis of the redetermination of costs. The
effective date of any adjustment in rates of basic allowance
for housing for an area as a result of such a redetermina-
tion shall be the same date as the effective date of the next
increase in rates of basic pay for members of the uniformed
services after the redetermination.
‘‘(f) SAVINGS OF RATE.—The rate of basic allowance
for housing payable to a particular member for an area
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within the United States may not be reduced during a con-
tinuous period of eligibility of the member to receive a basic
allowance for housing for that area by reason of—
‘‘(1) a general reduction of rates of basic allow-
ance for housing for members of the same grade and
dependency status for the area taking effect during
the period; or
‘‘(2) a promotion of the member during the pe-
riod.
‘‘(g) FISCAL YEAR LIMITATION ON TOTAL ALLOW-
ANCES PAID FOR HOUSING INSIDE THE UNITED STATES.—
(1) The total amount that may be paid for a fiscal year
for the basic allowance for housing for areas within the
United States by authorized members of the uniformed serv-
ices by section 403 of this title is the product of—
‘‘(A) the total amount authorized to be paid for
the allowance for such areas for the preceding fiscal
year (as adjusted under paragraph (2)); and
‘‘(B) the fraction—
‘‘(i) the numerator of which is the average
of the costs of housing determined by the Sec-
retary under subsection (b)(2) for the areas of the
United States for June of the preceding fiscal
year; and
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‘‘(ii) the denominator of which is the aver-
age of the costs of housing determined by the Sec-
retary under subsection (b)(2) for the areas of the
United States for June of the fiscal year before
the preceding fiscal year.
‘‘(2) In making a determination under paragraph (1)
for a fiscal year, the Secretary shall adjust the amount au-
thorized to be paid for the preceding fiscal year for the basic
allowance for housing to reflect changes (during the fiscal
year for which the determination is made) in the number,
grade distribution, and dependency status of members of the
uniformed services entitled to the basic allowance for hous-
ing from the number of such members during such preced-
ing fiscal year.
‘‘(h) MEMBERS EN ROUTE BETWEEN PERMANENT
DUTY STATIONS.—The Secretary of Defense shall prescribe
in regulations the rate of the temporary housing allowance
to which a member is entitled under section 403(f) of this
title while the member is in a travel or leave status between
permanent duty stations.
‘‘(i) SURVIVORS
OF MEMBERS DYING
ON ACTIVE
DUTY.— The rate of the basic allowance for housing pay-
able to dependents of a deceased member under section
403(l)(2) of this title shall be the rate that is payable for
members of the same grade and dependency status as the
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deceased member for the area where the dependents are re-
siding.
‘‘(j) MEMBERS PAYING CHILD SUPPORT.—(1) The
basic allowance for housing differential to which a member
is entitled under section 403(m)(2) of this title is the
amount equal to the excess of—
‘‘(A) the rate of the basic allowance for quarters
(with dependents) for the member’s pay grade, as such
rate was in effect on December 31, 1997, under sec-
tion 403 of this title (as such section was in effect on
such date), over
‘‘(B) the rate of the basic allowance for quarters
(without dependents) for the member’s pay grade, as
such rate was in effect on December 31, 1997, under
section 403 of this title (as such section was in effect
on that date).
‘‘(2) Whenever the rates of basic pay for members of
the uniformed services are increased, the monthly amount
of the basic allowance for housing differential shall be in-
creased by the average percent increase in the rates of basic
pay. The effective date of the increase shall be the same date
as the effective date in the increase in the rates of basic
pay.
‘‘(k) PARTIAL ALLOWANCE FOR QUARTERS.—The rate
of the partial allowance for quarters to which a member
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without dependents is entitled under section 403(p) of this
title is the partial rate of basic allowance for quarters for
the member’s pay grade as such partial rate was in effect
on December 31, 1997, under section 1009(c)(2) of this title
(as such section was in effect on such date).’’.
SEC. 618. DISLOCATION ALLOWANCE.
(a) AMOUNT.—Section 407 of title 37, United States
Code, is amended—
(1) in subsection (a), by striking out ‘‘equal to
the basic allowance for quarters for two and one-half
months as provided for the member’s pay grade and
dependency status in section 403 of this title’’ in the
matter preceding paragraph (1) and inserting in lieu
thereof ‘‘determined under subsection (g)’’;
(2) in subsection (b), by striking out ‘‘equal to
the basic allowance for quarters for two months as
provided for a member’s pay grade and dependency
status in section 403 of this title’’ and inserting in
lieu thereof ‘‘determined under subsection (g)’’; and
(3) by adding at the end the following:
‘‘(g) AMOUNT.—(1) The dislocation allowance payable
to a member under subsection (a) shall be the amount equal
to 160 percent of the monthly national average cost of hous-
ing determined for members of the same grade and depend-
ency status as the member.
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‘‘(2) The dislocation allowance payable to a member
under subsection (b) shall be the amount equal to 130 per-
cent of the monthly national average cost of housing deter-
mined for members of the same grade and dependency sta-
tus as the member.
‘‘(3) In this section, the term ‘monthly national aver-
age cost of housing’, with respect to members of a particular
grade and dependency status, means the average of the
monthly costs of housing that the Secretary determines ade-
quate for members of that grade and dependency status for
all areas in the United States under section 403a(b)(2) of
this title.’’.
(b) STYLISTIC AMENDMENTS.—Such section is amend-
ed—
(1) in subsection (a), by inserting ‘‘FIRST AL-
LOWANCE.—’’ after ‘‘(a)’’;
(2) in subsection (b), by inserting ‘‘SECOND AL-
LOWANCE.—’’ after ‘‘(b)’’;
(3) in subsection (c), by inserting ‘‘ONE ALLOW-
ANCE PER FISCAL YEAR.—’’ after ‘‘(c)’’;
(4) in subsection (d), by inserting ‘‘NO ENTITLE-
MENT FOR FIRST AND LAST MOVES.—’’ after ‘‘(d)’’;
(5) in subsection (e), by inserting ‘‘WHEN MEM-
BER
WITH
DEPENDENTS
CONSIDERED
MEMBER
WITHOUT DEPENDENTS.—’’ after ‘‘(e)’’; and
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(6) in subsection (f), by inserting ‘‘PAYMENT IN
ADVANCE.—’’ after ‘‘(f)’’.
SEC. 619. FAMILY SEPARATION AND STATION ALLOWANCES.
(a) FAMILY SEPARATION ALLOWANCE.—
(1) REPEAL
OF
AUTHORITY
FOR
ALLOWANCE
EQUAL
TO
BAQ.—Section 427 of title 37, United
States Code, is amended by striking out subsection
(a).
(2) CONFORMING AMENDMENTS.—Subsection (b)
of such section is amended—
(A) by striking out ‘‘(b) ADDITIONAL SEPA-
RATION ALLOWANCE.—’’;
(B) by redesignating paragraphs (1), (2),
(3), (4), and (5), as subsections (a), (b), (c), (d),
and (e), respectively;
(C) in subsection (a), as so redesignated—
(i) by inserting ‘‘ENTITLEMENT.—’’
after ‘‘(a)’’;
(ii) by striking out ‘‘, including sub-
section (a),’’; and
(iii) by redesignating subparagraphs
(A), (B), (C), and (D) as paragraphs (1),
(2), (3), and (4), respectively;
(D) in subsection (b), as redesignated by
paragraph (2)—
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(i) by inserting ‘‘EFFECTIVE DATE
FOR SEPARATION DUE TO CRUISE OR TEM-
PORARY DUTY.—’’ after ‘‘(b)’’;
(ii) by striking out ‘‘subsection by vir-
tue of duty described in subparagraph (B)
or (C) of paragraph (1)’’ and inserting in
lieu thereof ‘‘section by virtue of duty de-
scribed in paragraph (2) or (3) of sub-
section (a)’’;
(iii) by redesignating subparagraphs
(A) and (B) as paragraphs (1) and (2), re-
spectively; and
(iv) in paragraph (2), as so redesig-
nated—
(I) by striking out ‘‘subsection’’
and inserting in lieu thereof ‘‘section’’;
and
(II) by striking out ‘‘subpara-
graphs’’ and inserting in lieu thereof
‘‘paragraphs’’;
(E) in subsection (c), as redesignated by
paragraph (2)—
(i) by inserting ‘‘ENTITLEMENT WHEN
NO
RESIDENCE
OR
HOUSEHOLD
MAIN-
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TAINED FOR DEPENDENTS.—’’ after ‘‘(c)’’;
and
(ii) by striking out ‘‘subsection’’ and
inserting in lieu thereof ‘‘section’’;
(F) in subsection (d), as redesignated by
paragraph (2)—
(i) by inserting ‘‘EFFECT
OF ELEC-
TION OF UNACCOMPANIED TOUR.—’’ after
‘‘(d)’’; and
(ii) by striking out ‘‘paragraph (1)(A)
of this subsection’’ and inserting in lieu
thereof ‘‘subsection (a)(1)’’; and
(G) in subsection (e), as redesignated by
paragraph (2)—
(i) by inserting ‘‘ENTITLEMENT WHILE
DEPENDENT ENTITLED TO BASIC PAY.—’’
after ‘‘(e)’’; and
(ii) 
by 
striking 
out 
‘‘paragraph
(1)(D)’’ each place it appears and inserting
in lieu thereof ‘‘subsection (a)(4)’’.
(b) STATION ALLOWANCE.—
(1) REPEAL OF AUTHORITY.—Section 405 of title
37, United States Code, is amended by striking out
subsection (b).
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(2) CONFORMING AMENDMENT.—Such section is
further amended by redesignating subsections (c) and
(d) as subsections (b) and (c), respectively.
SEC. 620. OTHER CONFORMING AMENDMENTS.
(a) DEFINITION OF REGULAR MILITARY COMPENSA-
TION.—Section 101(25) of title 37, United States Code, is
amended by striking out ‘‘basic allowance for quarters (in-
cluding any variable housing allowance or station allow-
ance)’’ and inserting in lieu thereof ‘‘basic allowance for
housing.’’.
(b) ALLOWANCES WHILE PARTICIPATING IN INTER-
NATIONAL SPORTS.—Section 420(c) of such title is amended
by striking out ‘‘quarters’’ and inserting in lieu thereof
‘‘housing’’.
(c) 
PAYMENTS
TO
MISSING
PERSONS.—Section
551(3)(D) of such title is amended by striking out ‘‘quar-
ters’’ and inserting in lieu thereof ‘‘housing’’.
(d) PAYMENT DATE.—Section 1014(a) of such title is
amended by striking out ‘‘basic allowance for quarters’’ and
inserting in lieu thereof ‘‘basic allowance for housing’’.
(e) OCCUPANCY
OF SUBSTANDARD FAMILY HOUS-
ING.—Section 2830(a) of title 10, United States Code, is
amended by striking out ‘‘basic allowance for quarters’’
each place it appears and inserting in lieu thereof ‘‘basic
allowance for housing’’.
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SEC. 621. CLERICAL AMENDMENT.
The table of sections at the beginning of chapter 7 of
title 37, United States Code, is amended by striking out
the items relating to section 403 and 403a and inserting
in lieu thereof the following:
‘‘403. Basic allowance for housing: eligibility.
‘‘403a. Basic allowance for housing: rates.’’.
SEC. 622. EFFECTIVE DATE.
This part and the amendments made by this part shall
take effect on January 1, 1998.
PART III—OTHER AMENDMENTS RELATING TO
ALLOWANCES
SEC. 626. REVISION OF AUTHORITY TO ADJUST COMPENSA-
TION NECESSITATED BY REFORM OF SUB-
SISTENCE AND HOUSING ALLOWANCES.
(a) CONFORMING REPEAL OF AUTHORITY RELATING
TO BAS AND BAQ.—
(1) IN GENERAL.—Section 1009 of title 37, Unit-
ed States Code, is amended to read as follows:
‘‘§ 1009. Adjustments of monthly basic pay
‘‘(a) ADJUSTMENT REQUIRED.—Whenever the General
Schedule of compensation for Federal classified employees
as contained in section 5332 of title 5 is adjusted upward,
the President shall immediately make an upward adjust-
ment in the monthly basic pay authorized members of the
uniformed services by section 203(a) of this title.
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‘‘(b) EFFECTIVENESS OF ADJUSTMENT.—An adjust-
ment under this section shall—
‘‘(1) have the force and effect of law; and
‘‘(2) carry the same effective date as that apply-
ing to the compensation adjustments provided Gen-
eral Schedule employees.
‘‘(c) EQUAL PERCENTAGE INCREASE FOR ALL MEM-
BERS.—Subject to subsection (d), an adjustment under this
section shall provide all eligible members with an increase
in the monthly basic pay which is of the same percentage
as the overall average percentage increase in the General
Schedule rates of basic pay for civilian employees.
‘‘(d) ALLOCATION OF INCREASE AMONG PAY GRADES
AND YEARS-OF-SERVICE.—(1) Subject to paragraph (2),
whenever the President determines such action to be in the
best interest of the Government, he may allocate the overall
percentage increase in the monthly basic pay under sub-
section (a) among such pay grade and years-of-service cat-
egories as he considers appropriate.
‘‘(2) In making any allocation of an overall percentage
increase in basic pay under paragraph (1)—
‘‘(A) the amount of the increase in basic pay for
any given pay grade and years-of-service category
after any allocation made under this subsection may
not be less than 75 percent of the amount of the in-
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crease in the monthly basic pay that would otherwise
have been effective with respect to such pay grade and
years-of-service category under subsection (c); and
‘‘(B) the percentage increase in the monthly
basic pay in the case of any member of the uniformed
services with four years or less service may not exceed
the overall percentage increase in the General Sched-
ule rates of basic pay for civilian employees.
‘‘(e) NOTICE OF ALLOCATIONS.—Whenever the Presi-
dent plans to exercise his authority under subsection (d)
with respect to any anticipated increase in the monthly
basic pay of members of the uniformed services, he shall
advise Congress, at the earliest practicable time prior to
the effective date of such increase, regarding the proposed
allocation of such increase.
‘‘(f) QUADRENNIAL ASSESSMENT OF ALLOCATIONS.—
The allocations of increases made under this section shall
be assessed in conjunction with the quadrennial review of
military compensation required by section 1008(b) of this
title.’’.
(2) CLERICAL AMENDMENT.—The item relating
to such section in the table of sections at the begin-
ning of chapter 19 of such title is amended to read
as follows:
‘‘1009. Adjustments of monthly basic pay.’’.
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(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on January 1, 1998.
SEC. 627. DEADLINE FOR PAYMENT OF READY RESERVE
MUSTER DUTY ALLOWANCE.
Section 433(c) of title 37, United States Code, is
amended by striking out ‘‘and shall’’ in the first sentence
and all that follows in that sentence and inserting in lieu
thereof a period and the following: ‘‘The allowance shall be
paid to the member before, on, or after the date on which
the muster duty is performed, but not later than 30 days
after that date.’’.
Subtitle C—Bonuses and Special
and Incentive Pays
SEC. 631. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND
SPECIAL PAY AUTHORITIES FOR RESERVE
FORCES.
(a) SPECIAL PAY FOR CRITICALLY SHORT WARTIME
HEALTH SPECIALISTS.—Section 302g(f) of title 37, United
States Code, is amended by striking out ‘‘September 30,
1998’’ and inserting in lieu thereof ‘‘September 30, 1999’’.
(b) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(f) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1998’’ and inserting in lieu
thereof ‘‘September 30, 1999’’.
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(c) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1998’’ and inserting in lieu
thereof ‘‘September 30, 1999’’.
(d) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED
TO CERTAIN HIGH PRIORITY UNITS.—Section 308d(c) of
title 37, United States Code, is amended by striking out
‘‘September 30, 1998’’ and inserting in lieu thereof ‘‘Sep-
tember 30, 1999’’.
(e) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1998’’ and inserting in lieu
thereof ‘‘September 30, 1999’’.
(f) READY RESERVE ENLISTMENT AND REENLISTMENT
BONUS.—Section 308h(g) of title 37, United States Code,
is amended by striking out ‘‘September 30, 1998’’ and in-
serting in lieu thereof ‘‘September 30, 1999’’.
(g) PRIOR SERVICE ENLISTMENT BONUS.—Section
308i(i) of title 37, United States Code, is amended by strik-
ing out ‘‘September 30, 1998’’ and inserting in lieu thereof
‘‘September 30, 1999’’.
(h) REPAYMENT OF EDUCATION LOANS FOR CERTAIN
HEALTH PROFESSIONALS WHO SERVE IN THE SELECTED
RESERVE.—Section 16302(d) of title 10, United States
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Code, is amended by striking out ‘‘October 1, 1998’’ and
inserting in lieu thereof ‘‘October 1, 1999’’.
SEC. 632. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND
SPECIAL PAY AUTHORITIES FOR NURSE OFFI-
CER CANDIDATES, REGISTERED NURSES, AND
NURSE ANESTHETISTS.
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States Code,
is amended by striking out ‘‘September 30, 1998’’ and in-
serting in lieu thereof ‘‘September 30, 1999’’.
(b) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is
amended by striking out ‘‘September 30, 1998’’ and insert-
ing in lieu thereof ‘‘September 30, 1999’’.
(c) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of title 37, United States
Code, is amended by striking out ‘‘September 30, 1998’’ and
inserting in lieu thereof ‘‘September 30, 1999’’.
SEC. 633. ONE-YEAR EXTENSION OF AUTHORITIES RELAT-
ING TO PAYMENT OF OTHER BONUSES AND
SPECIAL PAYS.
(a) REENLISTMENT BONUS FOR ACTIVE MEMBERS.—
Section 308(g) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1998’’ and inserting in lieu
thereof ‘‘September 30, 1999’’.
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(b) 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, 1998’’
and inserting in lieu thereof ‘‘September 30, 1999’’.
(c) 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, 1998’’ and inserting in lieu thereof ‘‘Sep-
tember 30, 1999’’.
(d) NUCLEAR CAREER ACCESSION BONUS.—Section
312b(c) of title 37, United States Code, is amended by strik-
ing out ‘‘September 30, 1998’’ and inserting in lieu thereof
‘‘September 30, 1999’’.
(e) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—
Section 312c(d) of title 37, United States Code, is amended
by striking out ‘‘October 1, 1998’’ and inserting in lieu
thereof ‘‘October 1, 1999’’.
SEC. 634. INCREASED AMOUNTS FOR AVIATION CAREER IN-
CENTIVE PAY.
(a) AMOUNTS.—The table in subsection (b)(1) of sec-
tion 301a(b)(1) of title 37, United States Code, is amend-
ed—
(1) by inserting at the end of phase I of the table
the following:
‘‘Over 14 ....................................................................................................
840’’;
and
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(2) by striking out phase II of the table and in-
serting in lieu thereof the following:
‘‘PHASE II
‘‘Monthly
‘‘Years of service as an officer:
rate
‘‘Over 22 .................................................................................................... $585
‘‘Over 23 ....................................................................................................
495
‘‘Over 24 ....................................................................................................
385
‘‘Over 25 ....................................................................................................
250’’.
(b) EFFECTIVE
DATE
AND
APPLICABILITY.—The
amendments made by subsection (a) shall take effect on Oc-
tober 1, 1998, and shall apply with respect to months begin-
ning on or after that date.
SEC. 635. AVIATION CONTINUATION PAY.
(a) EXTENSION OF AUTHORITY.—Subsection (a) of sec-
tion 301b of title 37, United States Code, is amended by
striking out ‘‘1998’’ and inserting in lieu thereof ‘‘2005’’.
(b) BONUS AMOUNTS.—Subsection (c) of such section
is amended—
(1) in paragraph (1), by striking out ‘‘$12,000’’
and inserting in lieu thereof ‘‘$25,000’’; and
(2) in paragraph (2), by striking out ‘‘$6,000’’
and inserting in lieu thereof ‘‘$12,000’’.
(c) DEFINITION OF AVIATION SPECIALTY.—Subsection
(j)(2) of such section is amended by inserting ‘‘specific’’ be-
fore ‘‘community’’.
(d) CONTENT OF ANNUAL REPORT.—Subsection (i)(1)
of such section is amended—
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(1) by inserting ‘‘and’’ at the end of subpara-
graph (A);
(2) by striking out the semicolon and ‘‘and’’ at
the end of subparagraph (B) and inserting in lieu
thereof a period; and
(3) by striking out subparagraph (C).
(e) EFFECTIVE DATES AND APPLICABILITY.—(1) Ex-
cept as provided in paragraphs (1) and (2), the amend-
ments made by this section shall take effect on the date of
the enactment of this Act.
(2) The amendment made by subsection (b) shall take
effect on October 1, 1997, and shall apply with respect to
agreements accepted under subsection (a) of section 301b
of title 37, United States Code, on or after that date.
(3) The amendment made by subsection (c) shall take
effect as of October 1, 1996, and shall apply with respect
to agreements accepted under subsection (a) of section 301b
of title 37, United States Code, on or after that date.
SEC. 636. ELIGIBILITY OF DENTAL OFFICERS FOR THE
MULTIYEAR RETENTION BONUS PROVIDED
FOR MEDICAL OFFICERS.
(a) ADDITION OF DENTAL OFFICERS.—Section 301d
of title 37, United States Code, is amended—
(1) in subsection (a)(1), by inserting ‘‘or dental’’
after ‘‘medical’’; and
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graphs (C), (D), (E), and (F), and inserting in lieu thereof
the following:
‘‘(C) $4,000 per year, if the officer has at least
six but less than 8 years of creditable service.
‘‘(D) $12,000 per year, if the officer has at least
8 but less than 12 years of creditable service.
‘‘(E) $10,000 per year, if the officer has at least
12 but less than 14 years of creditable service.
‘‘(F) $9,000 per year, if the officer has at least
14 but less than 18 years of creditable service.
‘‘(G) $8,000 per year, 18 or more years of cred-
itable service.’’.
(b) VARIABLE SPECIAL PAY FOR OFFICERS ABOVE
GRADE O–6.—Paragraph (3) of such section is amended
by striking out ‘‘$1,000’’ and inserting in lieu thereof
‘‘$7,000’’.
(c) ADDITIONAL SPECIAL PAY.—Paragraph (4) of such
section is amended—
(1) in subparagraph (B), by striking out ‘‘14’’
and inserting in lieu thereof ‘‘10’’; and
(2) by striking out subparagraphs (C) and (D)
and inserting in lieu thereof the following:
‘‘(C) $15,000 per year, if the officer has 10 or
more years of creditable service.’’.
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(d) EFFECTIVE DATE.—The amendments made by this
section shall take effect on October 1, 1997, and shall apply
with respect to months beginning on or after that date.
SEC. 638. MODIFICATION OF SELECTED RESERVE REEN-
LISTMENT BONUS AUTHORITY.
(a) ELIGIBILITY OF MEMBERS WITH UP TO 14 YEARS
OF TOTAL SERVICE.—Subsection (a) of section 308b of title
37, United States Code, is amended by striking out ‘‘ten
years’’ in paragraph (1) and inserting in lieu thereof ‘‘14
years’’.
(b) TWO-BONUS AUTHORITY
FOR CONSECUTIVE 3-
YEAR ENLISTMENTS.—Such subsection is further amend-
ed—
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(2) by inserting ‘‘AUTHORITY AND ELIGIBILITY
REQUIREMENTS.—(1)’’ after ‘‘(a)’’;
(3) by striking out ‘‘a bonus as provided in sub-
section (b)’’ before the period at the end and inserting
in lieu thereof ‘‘a bonus or bonuses in accordance
with this section’’; and
(4) by adding at the end the following new para-
graph (2):
‘‘(2) If a person eligible to receive a bonus under this
section by reason of an enlistment for a period of three years
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so elects on or before the date of the enlistment, the Secretary
concerned may pay the person—
‘‘(A) a bonus for that enlistment; and
‘‘(B) an additional bonus for a later voluntary
extension of the enlistment, or a subsequent consecu-
tive enlistment, for a period of at least three years
if—
‘‘(i) on the date of the expiration of the en-
listment for which the first bonus was paid, or
the date on which, but for an extension of the en-
listment, the enlistment would otherwise expire,
as the case may be, the person satisfies the eligi-
bility requirements set forth in paragraph (1)
and the eligibility requirements for reenlisting or
extending the enlistment; and
‘‘(ii) the extension of the enlistment or the
subsequent consecutive enlistment, as the case
may be, is in a critical military skill designated
for such a bonus by the Secretary concerned.’’.
(c) BONUS AMOUNTS.—Subsection (b) of such section
is amended to read as follows:
‘‘(b) BONUS AMOUNTS.—(1) In the case of a member
who enlists for a period of six years, the bonus to be paid
under subsection (a) shall be a total amount not to exceed
$5,000.
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‘‘(2) In the case of a member who enlists for a period
of three years, the bonus to be paid under subsection (a)
shall be as follows:
‘‘(A) If the member does not make an election
authorized under subsection (a)(2), the total amount
of the bonus shall be an amount not to exceed $2,500.
‘‘(B) If the member makes an election under sub-
section (a)(2) to be paid a bonus for the enlistment
and an additional bonus for a later extension of the
enlistment or for a subsequent consecutive enlist-
ment—
‘‘(i) the total amount of the first bonus shall
be an amount not to exceed $2,000; and
‘‘(ii) the total amount of the additional
bonus shall be an amount not to exceed $2,500.’’.
(d) DISBURSEMENT
OF BONUS.—Subsection (c) of
such section is amended to read as follows:
‘‘(c) DISBURSEMENT OF BONUS.—(1) Any bonus pay-
able under this section shall be disbursed in one initial pay-
ment of an amount not to exceed one-half of the total
amount of the bonus and subsequent periodic partial pay-
ments of the balance of the bonus. The Secretary concerned
shall prescribe the amount of each partial payment and the
schedule for making the partial payments.
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‘‘(2) Payment of any additional bonus under sub-
section (a)(2)(B) for an extension of an enlistment or a sub-
sequent consecutive enlistment shall begin on or after the
date referred to in clause (i) of that subsection.’’.
(e) SUBSECTION HEADINGS.—Such section is further
amended—
(1) in subsection (d), by inserting ‘‘REFUND FOR
UNSATISFACTORY SERVICE.—’’ after ‘‘(d)’’;
(2) in subsection (e), by inserting ‘‘REGULA-
TIONS.—’’ after ‘‘(e)’’; and
(3) in subsection (f), by inserting ‘‘TERMINATION
OF AUTHORITY.—’’ after ‘‘(f)’’.
(f) EFFECTIVE DATE.—The amendments made by this
section shall take effect on October 1, 1997, and apply to
enlistments in the Armed Forces on or after that date.
SEC. 639. MODIFICATION OF AUTHORITY TO PAY BONUSES
FOR ENLISTMENTS BY PRIOR SERVICE PER-
SONNEL IN CRITICAL SKILLS IN THE SE-
LECTED RESERVE.
(a) REORGANIZATION OF SECTION.—Section 308i of
title 37, United States Code, is amended—
(1) by redesignating subsections (e), (f), and (g)
as paragraphs (2), (3), and (4), respectively, of sub-
section (d);
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(2) by redesignating subsections (b), (c), (d), (h),
and (i) as subsections (c), (e), (f), (g), and (h), respec-
tively; and
(3) by redesignating paragraph (2) of subsection
(a) as subsection (b) and in subsection (b), as so re-
designated, by redesignating subparagraphs (A), (B),
(C), and (D) as paragraphs (1), (2), (3), and (4), re-
spectively.
(b) TWO-BONUS AUTHORITY
FOR CONSECUTIVE 3-
YEAR ENLISTMENTS.—Subsection (a) of such section is
amended by inserting after paragraph (1) the following new
paragraph (2):
‘‘(2) If a person eligible to receive a bonus under this
section by reason of an enlistment for a period of three years
so elects on or before the date of the enlistment, the Secretary
concerned may pay the person—
‘‘(A) a bonus for that enlistment; and
‘‘(B) an additional bonus for a later extension of
the enlistment, or a subsequent consecutive enlistment,
for a period of at least three years if—
‘‘(i) on the date of the expiration of the en-
listment for which the first bonus was paid, or
the date on which, but for an extension of the en-
listment, the enlistment would otherwise expire,
the person satisfies the eligibility requirements
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‘‘(B) If the member makes an election under sub-
section (a)(2) to be paid a bonus for the enlistment
and an additional bonus for a later extension of the
enlistment or for a subsequent consecutive enlist-
ment—
‘‘(i) the total amount of the first bonus shall
be an amount not to exceed $2,000; and
‘‘(ii) the total amount of the additional
bonus shall be an amount not to exceed $2,500.’’.
(e) DISBURSEMENT
OF
BONUS.—Such section is
amended by inserting after subsection (c), as redesignated
by subsection (a)(2) and amended by subsection (d), the fol-
lowing new subsection (d):
‘‘(d) DISBURSEMENT OF BONUS.—(1) Any bonus pay-
able under this section shall be disbursed in one initial pay-
ment of an amount not to exceed one-half of the total
amount of the bonus and subsequent periodic partial pay-
ments of the balance of the bonus. The Secretary concerned
shall prescribe the amount of each partial payment and the
schedule for making the partial payments.
‘‘(2) Payment of any additional bonus under sub-
section (a)(2)(B) for an extension of an enlistment or a sub-
sequent consecutive enlistment shall begin on or after the
date referred to in clause (i) of that subsection.’’.
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(f) CONFORMING AMENDMENTS.—(1) Subsection (a)(1)
of such section is amended by striking out ‘‘paragraph (2)
may be paid a bonus as prescribed in subsection (b)’’ and
inserting in lieu thereof ‘‘subsection (b) may be paid a
bonus or bonuses in accordance with this section’’.
(2) Subsection (e) of such section, as redesignated by
subsection (a)(2), is amended by striking out ‘‘may not be
paid more than one bonus under this section and’’.
(3) Subsection (f) of such section, as redesignated by
subsection (a)(2), is amended—
(A) by inserting ‘‘REFUND
FOR UNSATISFAC-
TORY SERVICE.—(1)’’ after ‘‘(f)’’;
(B) in paragraphs (2) and (4), as redesignated
by subsection (a)(1), by striking out ‘‘subsection (d)’’
and inserting in lieu thereof ‘‘paragraph (1)’’; and
(C) in paragraph (3), as redesignated by sub-
section (a)(1)—
(i) by striking out ‘‘subsection (h)’’ and in-
serting in lieu thereof ‘‘subsection (g)’’; and
(ii) by striking out ‘‘subsection (d)’’ and in-
serting in lieu thereof ‘‘paragraph (1)’’.
(g) SUBSECTION HEADINGS.—Such section, as amend-
ed by subsections (a) through (f), is further amended—
(1) in subsection (a), by inserting ‘‘AUTHOR-
ITY.—’’ after ‘‘(a)’’;
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(2) in subsection (b), by inserting ‘‘ELIGI-
BILITY.—’’ after ‘‘(b)’’;
(3) in subsection (e), by inserting ‘‘LIMITA-
TION.—’’ after ‘‘(e)’’;
(4) in subsection (g), by inserting ‘‘REGULA-
TIONS.—’’ after ‘‘(g)’’; and
(5) in subsection (h), by inserting ‘‘TERMI-
NATION OF AUTHORITY.—’’ after ‘‘(h)’’.
(h) EFFECTIVE DATE.—The amendments made by this
section shall take effect on October 1, 1997, and apply to
enlistments in the Armed Forces on or after that date.
SEC. 640. INCREASED SPECIAL PAY AND BONUSES FOR NU-
CLEAR QUALIFIED OFFICERS.
(a) SPECIAL PAY FOR OFFICERS EXTENDING PERIOD
OF ACTIVE SERVICE.—Subsection (a) of section 312 of title
37, United States Code, is amended by striking out
‘‘$12,000’’ and inserting in lieu thereof ‘‘$15,000’’.
(b) NUCLEAR
CAREER
ACCESSION
BONUS.—Sub-
section (a)(1) of section 312b of title 37, United States Code,
is amended by striking out ‘‘$8,000’’ and inserting in lieu
thereof ‘‘$10,000’’.
(c) NUCLEAR
CAREER
ANNUAL
INCENTIVE
BO-
NUSES.—Section 312c of title 37, United States Code, is
amended—
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(1) in subsection (a)(1), by striking out
‘‘$10,000’’ and inserting in lieu thereof ‘‘$12,000’’;
and
(2) in subsection (b)(1), by striking out ‘‘$4,500’’
and inserting in lieu thereof ‘‘$5,500’’.
(d) EFFECTIVE DATE.—(1) The amendments made by
this section shall take effect on October 1, 1997.
(2) The amendments made by subsections (a) and (b)
shall apply with respect to agreements accepted under sec-
tions 312(a) and 312b(a), respectively, of title 37, United
States Code, on or after the effective date of the amend-
ments.
SEC. 641. AUTHORITY TO PAY BONUSES IN LIEU OF SPE-
CIAL PAY FOR ENLISTED MEMBERS EXTEND-
ING DUTY AT DESIGNATED LOCATIONS OVER-
SEAS.
(a) PAYMENT FLEXIBILITY.—Section 314 of title 37,
United States Code, is amended—
(1) in subsection (a), by striking out ‘‘at a rate’’
and all that follows through ‘‘Secretary concerned’’;
(2) by redesignating subsection (b) as subsection
(c); and
(3) by inserting after subsection (a) the following
new subsection (b):
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‘‘(b) PAYMENT SCHEDULE AND RATES.—At the elec-
tion of the Secretary concerned, the Secretary may pay the
special pay to which a member is entitled under subsection
(a)—
‘‘(1) in monthly installments in an amount pre-
scribed by the Secretary, but not to exceed $80 each;
or
‘‘(2) as an annual bonus in an amount pre-
scribed by the Secretary, but not to exceed $2,000 per
year.’’.
(b) PROHIBITION
OF CONCURRENT RECEIPT
WITH
REST
AND
RECUPERATIVE
ABSENCE
OR
TRANSPOR-
TATION.—Subsection (c) of such section, as redesignated by
subsection (a)(2), is amended—
(1) by inserting ‘‘CONCURRENT RECEIPT
OF
BENEFITS PROHIBITED.—(1)’’ after ‘‘(c)’’; and
(2) by adding at the end the following:
‘‘(2)(A) In the case of a member entitled to an annual
bonus for a 12-month period under subsection (b)(2), the
amount of the annual bonus shall be reduced by the percent
determined by dividing 12 into the number of months in
the period that the member is authorized rest and recuper-
ative absence or transportation. For the purposes of the pre-
ceding sentence, a member shall be treated as having been
authorized rest and recuperative absence or transportation
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for a full month if rest and recuperative absence or trans-
portation is authorized for the member for any part of the
month.
‘‘(B) The Secretary concerned shall recoup by collec-
tion from a member any amount of an annual bonus paid
under subsection (b)(2) to the member for a 12-month pe-
riod that exceeds the amount of the bonus to which the mem-
ber is entitled for the period by reason of an authorization
of rest and recuperative absence or transportation for the
member during that period that was not taken into account
in computing the amount of the entitlement.’’.
(c) REPAYMENT.—Such section is further amended by
adding at the end the following:
‘‘(d) REFUND FOR FAILURE TO COMPLETE TOUR OF
DUTY.—(1) A member who, having entered into a written
agreement to extend a tour of duty for a period under sub-
section (a), receives a bonus payment under subsection
(b)(2) for a 12-month period covered by the agreement and
ceases during that 12-month period to perform the agreed
tour of duty shall refund to the United States the unearned
portion of the bonus. The unearned portion of the bonus
is the amount by which the amount of the bonus paid to
the member exceeds the amount determined by multiplying
the amount of the bonus paid by the percent determined
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by dividing 12 into the number of full months during which
the member performed the duty in the 12-month period.
‘‘(2) The Secretary concerned may waive the obligation
of a member to reimburse the United States under para-
graph (1) if the Secretary determines that conditions and
circumstances warrant the waiver.
‘‘(e) TREATMENT
OF
REIMBURSEMENT
OBLIGA-
TIONS.—(1) An obligation to reimburse the United States
imposed under subsection (c)(2)(B) or (d) is for all purposes
a debt owed to the United States.
‘‘(2) A discharge in bankruptcy under title 11 that is
entered less than 5 years after the termination of a written
agreement entered into under subsection (a) does not dis-
charge the member signing the agreement from a debt re-
ferred to in paragraph (1). This paragraph applies to any
case commenced under title 11 on or after October 1, 1997.’’.
(d) STYLISTIC AMENDMENT.—Subsection (a) of such
section is amended by inserting ‘‘AUTHORITY.—’’ after
‘‘(a)’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall take effect on October 1, 1997, and apply to
agreements accepted under section 314 of title 37, United
States Code, on or after that date.
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SEC. 642. RESERVE AFFILIATION AGREEMENT BONUS FOR
THE COAST GUARD.
Section 308e of title 37, United States Code, is amend-
ed—
(1) in subsection (a), by striking out ‘‘Secretary
of a military department’’ in the matter preceding
paragraph (1) and inserting in lieu thereof ‘‘Sec-
retary concerned’’; and
(2) by adding at the end the following:
‘‘(f) The authority in subsection (a) does not apply to
the Secretary of Commerce and the Secretary of Health and
Human Services.’’.
Subtitle D—Retired Pay, Survivor
Benefits, and Related Matters
SEC. 651. ONE-YEAR OPPORTUNITY TO DISCONTINUE PAR-
TICIPATION IN SURVIVOR BENEFIT PLAN.
(a) ELECTION TO DISCONTINUE WITHIN ONE YEAR
AFTER SECOND ANNIVERSARY OF COMMENCEMENT OF PAY-
MENT OF RETIRED PAY.—(1) Subchapter II of chapter 73
of title 10, United States Code, is amended by inserting
after section 1448 the following:
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‘‘§ 1448a. Election to discontinue participation: one-
year opportunity after second anniversary
of commencement of payment of retired
pay
‘‘(a) AUTHORITY.—A participant in the Plan may,
subject to the provisions of this section, elect to discontinue
participation in the Plan at any time during the 1-year
period beginning on the second anniversary of the date on
which payment of retired pay to the participant com-
mences.
‘‘(b) CONCURRENCE OF SPOUSE.—(1) A married par-
ticipant may not make an election under subsection (a)
without the concurrence of the participant’s spouse, except
that the participant may make such an election without
the concurrence of the person’s spouse if the person estab-
lishes to the satisfaction of the Secretary concerned that one
of the conditions described in section 1448(a)(3)(C) of this
title exists.
‘‘(2) The concurrence of a spouse under paragraph (1)
shall be made in such written form and shall contain such
information as may be required under regulations pre-
scribed by the Secretary of Defense.
‘‘(c) LIMITATION
ON
ELECTION
WHEN
FORMER
SPOUSE COVERAGE IN EFFECT.—The limitation set forth
in section 1450(f)(2) of this title shall apply to an election
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to discontinue participation in the Plan under subsection
(a).
‘‘(d) WITHDRAWAL OF ELECTION TO DISCONTINUE.—
Section 1448(b)(1)(D) of this title shall apply to an election
under subsection (a).
‘‘(e) CONSEQUENCES OF DISCONTINUATION.—Section
1448(b)(1)(E) of this title shall apply to an election under
subsection (a).
‘‘(f) NOTICE TO EFFECTED BENEFICIARIES.—The Sec-
retary concerned shall notify any former spouse or other
natural person previously designated under section 1448(b)
of this title of any election to discontinue participation
under subsection (a).
‘‘(g) EFFECTIVE DATE OF ELECTION.—An election au-
thorized under this section is effective as of the first day
of the first calendar month following the month in which
the election is received by the Secretary concerned.
‘‘(h) INAPPLICABILITY
OF IRREVOCABILITY PROVI-
SIONS.—Paragraphs (4)(B) and (5)(C) of section 1448(a)
of this title do not apply to prevent an election under sub-
section (a).’’.
(2) The table of sections at the beginning of such sub-
chapter is amended by inserting after the item relating to
section 1448 the following:
‘‘1448a. Election to discontinue participation: one-year opportunity after second
anniversary of commencement of payment of retired pay.’’.
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(b) TRANSITION
PROVISION.—Notwithstanding the
limitation on the time for making an election under section
1448a of title 10, United States Code (as added by sub-
section (a)), that is specified in subsection (a) of such sec-
tion, a participant in the Survivor Benefit Plan under sub-
chapter II of chapter 73 of such title may make an election
in accordance with that section within one year after the
effective date of the section if the second anniversary of the
commencement of payment of retired pay to the participant
precedes that effective date.
(c) EFFECTIVE DATE.—Section 1448a of title 10,
United States Code, as added by subsection (a), shall take
effect 180 days after the date of the enactment of this Act.
SEC. 652. TIME FOR CHANGING SURVIVOR BENEFIT COV-
ERAGE FROM FORMER SPOUSE TO SPOUSE.
Section 1450(f)(1)(C) of title 10, United States Code,
is amended by adding at the end the following: ‘‘Notwith-
standing the preceding sentence, a change of election under
this subsection to provide an annuity to a spouse instead
of a former spouse may (subject to paragraph (2)) be made
at any time without regard to the time limitation in section
1448(a)(5)(B) of this title.’’.
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SEC. 653. PAID-UP COVERAGE UNDER SURVIVOR BENEFIT
PLAN.
Section 1452 of title 10, United States Code, is amend-
ed by adding at the end the following new subsection:
‘‘(j) COVERAGE PAID UP AT 30 YEARS OR AGE 70.—
(1) Coverage of a survivor of a member under the Plan shall
be considered paid up as of the end of the earlier of—
‘‘(A) the 360th month in which the member’s re-
tired pay has been reduced under this section; or
‘‘(B) the month in which the member attains 70
years of age.
‘‘(2) The retired pay of a member shall not be reduced
under this section to provide coverage of a survivor under
the Plan after the month when the coverage is considered
paid up under paragraph (1).’’.
SEC. 654. 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 Sep-
tember 21, 1972, and ending on October 1, 1978, and
at the time of his death would have been entitled to
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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 ad-
justed 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
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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 ‘‘Sec-
retary concerned’’ have the meanings given such terms
in section 101 of title 37, United States Code.
(2) The term ‘‘surviving spouse’’ has the mean-
ing given the terms ‘‘widow’’ and ‘‘widower’’ in para-
graphs (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 that begins after the month in which this Act
is enacted.
(f) EXPIRATION
OF AUTHORITY.—The authority to
pay annuities under this section shall expire on September
30, 2001.
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Subtitle E—Other Matters
SEC. 661. ELIGIBILITY OF RESERVES FOR BENEFITS FOR
ILLNESS, INJURY, OR DEATH INCURRED OR
AGGRAVATED IN LINE OF DUTY.
(a) PAY AND ALLOWANCES.—(1) Section 204 of title
37, United States Code, is amended—
(A) in subsection (g)(1)(D), by inserting after
‘‘while remaining overnight,’’ the following: ‘‘imme-
diately before the commencement of inactive-duty
training or’’; and
(B) in subsection (h)(1)(D), by inserting after
‘‘while remaining overnight,’’ the following: ‘‘imme-
diately before the commencement of inactive-duty
training or’’.
(2) Section 206(a)(3)(C) of such title is amended by
inserting after ‘‘while remaining overnight,’’ the following:
‘‘immediately before the commencement of inactive-duty
training or’’.
(b) MEDICAL
AND
DENTAL
CARE.—(1) Section
1074a(a)(3) of title 10, United States Code, is amended by
inserting after ‘‘while remaining overnight,’’ the following:
‘‘immediately before the commencement of inactive-duty
training or’’.
(2) Section 1076(a)(2) of title 10, United States Code,
is amended—
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(A) by striking out ‘‘or’’ at the end of subpara-
graph (A);
(B) by striking out the period at the end of sub-
paragraph (B)(ii) and inserting in lieu thereof ‘‘; or’’;
and
(C) by adding at the end the following:
‘‘(C) who incurs or aggravates an injury, illness,
or disease in the line of duty while serving on active
duty under a call or order to active duty for a period
of 30 days or less, if the call or order is modified to
extend the period of active duty of the member to be
more than 30 days.’’.
(c) ELIGIBILITY
FOR DISABILITY RETIREMENT
OR
SEPARATION.—(1) Section 1204(2) of title 10, United
States Code, is amended to read as follows:
‘‘(2) the disability is a result of an injury, ill-
ness, or disease incurred or aggravated—
‘‘(A) in line of duty while performing active
duty or inactive-duty training;
‘‘(B) while traveling directly to or from the
place at which such duty is performed; or
‘‘(C) while remaining overnight, imme-
diately before the commencement of inactive-duty
training or between successive periods of inac-
tive-duty training, at or in the vicinity of the
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site of the inactive-duty training, if the site of
the inactive-duty training is outside reasonable
commuting distance of the member’s residence;’’.
(2) Section 1206 of title 10, United States Code, is
amended—
(A) by redesignating paragraphs (2), (3), and
(4) as paragraphs (3), (4), and (5), respectively, and
(B) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) the disability is a result of an injury, ill-
ness, or disease incurred or aggravated—
‘‘(A) in line of duty while performing active
duty or inactive-duty training;
‘‘(B) while traveling directly to or from the
place at which such duty is performed; or
‘‘(C) while remaining overnight, imme-
diately before the commencement of inactive-duty
training or between successive periods of inac-
tive-duty training, at or in the vicinity of the
site of the inactive-duty training, if the site of
the inactive-duty training is outside reasonable
commuting distance of the member’s residence;’’.
(d) RECOVERY, CARE, AND DISPOSITION
OF RE-
MAINS.—Section 1481(a)(2)(D) of title 10, United States
Code, is amended by inserting after ‘‘while remaining over-
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night,’’ the following: ‘‘immediately before the commence-
ment of inactive-duty training or’’.
(e) CONFORMING AMENDMENTS AND RELATED CLERI-
CAL AMENDMENTS.—(1) The heading of section 1204 of title
10, United States Code, is amended to read as follows:
‘‘§ 1204. Members on active duty for 30 days or less or
on inactive-duty training: retirement’’.
(2) The heading of section 1206 of such title is amend-
ed to read as follows:
‘‘§ 1206. Members on active duty for 30 days or less or
on inactive-duty training: separation’’.
(3) The table of sections at the beginning of chapter
61 of such title is amended—
(A) by striking out the item relating to section
1204 and inserting in lieu thereof the following:
‘‘1204. Members on active duty for 30 days or less or on inactive-duty training:
retirement.’’;
and
(B) by striking out the item relating to section
1206 and inserting in lieu thereof the following:
‘‘1206. Members on active duty for 30 days or less or on inactive-duty training:
separation.’’.
(f) PROSPECTIVE APPLICABILITY.—No benefit shall ac-
crue under an amendment made by this section for any pe-
riod before the date of the enactment of this Act.
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SEC. 662. TRAVEL AND TRANSPORTATION ALLOWANCES
FOR DEPENDENTS BEFORE APPROVAL OF A
MEMBER’S COURT-MARTIAL SENTENCE.
Section 406(h)(2)(C) of title 37, United States Code,
is amended by inserting before the period at the end of the
matter following clause (iii) the following: ‘‘or action on
the sentence is pending under that section’’.
SEC. 663. ELIGIBILITY OF MEMBERS OF THE UNIFORMED
SERVICES FOR REIMBURSEMENT OF ADOP-
TION EXPENSES.
(a) PUBLIC HEALTH SERVICE.—Section 221(a) of the
Public Health Service Act (42 U.S.C. 213a(a)) is amended
by adding at the end the following:
‘‘(16) Section 1052, Reimbursement for adoption
expenses.’’.
(b) NATIONAL OCEANIC AND ATMOSPHERIC ADMINIS-
TRATION.—Section 3(a) of the Act entitled ‘‘An Act to re-
vise, codify, and enact into law, title 10 of the United States
Code, entitled ‘Armed Forces’, and title 32 of the United
States Code, entitled ‘National Guard’ ’’, approved August
10, 1956 (33 U.S.C. 857a(a)), is amended by adding at the
end the following:
‘‘(16) Section 1052, Reimbursement for adoption
expenses.’’.
(c) PROSPECTIVE APPLICABILITY.—The amendments
made by this section shall take effect on the date of the en-
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actment of this Act and apply to adoptions completed on
or after such date.
SEC. 664. SUBSISTENCE OF MEMBERS OF THE ARMED
FORCES ABOVE THE POVERTY LEVEL.
(a) FINDINGS.—Congress makes the following findings:
(1) The morale and welfare of members of the
Armed Forces and their families are key components
of the readiness of the Armed Forces.
(2) Several studies have documented significant
instances of members of the Armed Forces and their
families relying on various forms of income support
under programs of the Federal Government, including
assistance under the Food Stamp Act of 1977 (7
U.S.C. 2012(o) and assistance under the special sup-
plemental nutrition program for women, infants, and
children under section 17 of the Child Nutrition Act
of 1966 (42 U.S.C. 1786).
(b) SENSE OF CONGRESS.—It is the sense of Congress
that the Secretary of Defense should strive—
(1) to eliminate the need for members of the
Armed Forces and their families to subsist at, near,
or below the poverty level; and
(2) to improve the wellbeing and welfare of mem-
bers of the Armed Forces and their families by imple-
menting, and programming full funding for, pro-
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grams that have proven effective in elevating the
standard of living of members and their families sig-
nificantly above the poverty level.
(c) STUDY REQUIRED.—(1) The Secretary of Defense
shall conduct a study of members of the Armed Forces and
their families who subsist at, near, or below the poverty
level.
(2) The study shall include the following:
(A) An analysis of potential solutions for miti-
gating or eliminating the need for members of the
Armed Forces and their families to subsist at, near,
or below the poverty level, including potential solu-
tions involving changes in the systems and rates of
basic allowance for subsistence, basic allowance for
quarters, and variable housing allowance.
(B) Identification of the populations most likely
to need income support under Federal Government
programs, including—
(i) the populations living in areas of the
United States where housing costs are notably
high;
(ii) the populations living outside the Unit-
ed States; and
(iii) the number of persons in each identi-
fied population.
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(C) The desirability of increasing rates of basic
pay and allowances over a defined period of years by
a range of percentages that provides for higher per-
centage increases for lower ranking personnel than for
higher ranking personnel.
(d) IMPLEMENTATION OF DEPARTMENT OF DEFENSE
SPECIAL SUPPLEMENTAL FOOD PROGRAM FOR PERSONNEL
OUTSIDE THE UNITED STATES.—(1) Section 1060a(b) of
title 10, United States Code, is amended to read as follows:
‘‘(b) FEDERAL PAYMENTS AND COMMODITIES.—For
the purpose of obtaining Federal payments and commod-
ities in order to carry out the program referred to in sub-
section (a), the Secretary of Agriculture shall make avail-
able to the Secretary of Defense the same payments and
commodities as are made for the special supplemental food
program in the United States under section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786). Funds available
for the Department of Defense may be used for carrying
out the program under subsection (a).’’.
(2) Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit to
Congress a report regarding the Secretary’s intentions re-
garding implementation of the program authorized under
section 1060a of title 10, United States Code, including any
plans to implement the program.
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TITLE VII—HEALTH CARE
PROVISIONS
Subtitle A—Health Care Services
SEC. 701. WAIVER OF DEDUCTIBLES, COPAYMENTS, AND AN-
NUAL FEES FOR MEMBERS ASSIGNED TO CER-
TAIN DUTY LOCATIONS FAR FROM SOURCES
OF CARE.
(a) AUTHORITY.—Chapter 55 of title 10, United States
Code, is amended by adding at the end the following:
‘‘§ 1107. Waiver of deductibles, copayments, and an-
nual fees for members assigned to certain
duty locations far from sources of care
‘‘(a) AUTHORITY.—The administering Secretaries
shall prescribe in regulations—
‘‘(1) authority for members of the armed forces
referred to in subsection (b) to receive care under the
Civilian Health and Medical Program of the Uni-
formed Services; and
‘‘(2) policies and procedures for waiving an obli-
gation for such members to pay a deductible, copay-
ment, or annual fee that would otherwise be applica-
ble under that program for care provided to the mem-
bers under the program.
‘‘(b) ELIGIBILITY.—The regulations may be applied to
a member of the uniformed services on active duty who—
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‘‘(1) is assigned to—
‘‘(A) permanent duty as a recruiter;
‘‘(B) permanent duty at an educational in-
stitution to instruct, administer a program of
instruction, or provide administrative services in
support of a program of instruction for the Re-
serve Officers’ Training Corps;
‘‘(C) permanent duty as a full-time adviser
to a unit of a reserve component of the armed
forces; or
‘‘(D) any other permanent duty designated
by the administering Secretary concerned for
purposes of the regulations; and
‘‘(2) pursuant to such assignment, resides at a
location that is more than 50 miles, or one hour of
driving time, from—
‘‘(A) the nearest health care facility of the
uniformed services adequate to provide the need-
ed care under this chapter; and
‘‘(B) the nearest source of the needed care
that is available to the member under the
TRICARE Prime plan.
‘‘(c) PAYMENT OF COSTS.—Deductibles, copayments,
and annual fees not payable by a member by reason of a
waiver granted under the regulations shall be paid out of
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funds available to the Department of Defense for the defense
health program.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) The term ‘TRICARE Prime plan’ means a
plan under the TRICARE program that provides for
voluntary enrollment for health care to be furnished
in a manner similar to the manner in which health
care is furnished by health maintenance organiza-
tions.
‘‘(2) The term ‘TRICARE program’ means the
managed health care program that is established by
the Secretary of Defense under the authority of this
chapter, principally section 1097 of this title, and in-
cludes the competitive selection of contractors to fi-
nancially underwrite the delivery of health care serv-
ices under the Civilian Health and Medical Program
of the Uniformed Services.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following:
‘‘1107. Waiver of deductibles, copayments, and annual fees for members assigned
to certain duty locations far from sources of care.’’.
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SEC. 702. PAYMENT FOR EMERGENCY HEALTH CARE OVER-
SEAS FOR MILITARY AND CIVILIAN PERSON-
NEL OF THE ON-SITE INSPECTION AGENCY.
(a) PAYMENT OF COSTS.—The Secretary of Defense
may pay the costs of any emergency health care that—
(1) is needed by a member of the Armed Forces,
civilian employee of the Department of Defense, or ci-
vilian employee of a contractor while the person is
performing temporary or permanent duty with the
On-Site Inspection Agency outside the United States;
and
(2) is furnished to such person during fiscal year
1998 by a source outside the United States.
(b) FUNDING.—Funds authorized to be appropriated
for the expenses of the On-Site Inspection Agency for fiscal
year 1998 by this Act shall be available to cover payments
for emergency health care under subsection (a).
SEC. 703. DISCLOSURES OF CAUTIONARY INFORMATION ON
PRESCRIPTION MEDICATIONS.
(a) REQUIREMENT
FOR REGULATIONS.—Not later
than 180 days after the date of the enactment of this Act,
the administering Secretaries referred to in section 1073(3)
of title 10, United States Code, shall prescribe regulations
that require each source dispensing a prescription medica-
tion to a person under chapter 55 of such title to furnish
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to that person, with the medication, written cautionary in-
formation on the medication.
(b) INFORMATION TO BE DISCLOSED.—Information
required to be disclosed about a medication under the regu-
lations shall include appropriate cautions about usage of
the medication, including possible side effects and poten-
tially hazardous interactions with foods.
(c) FORM OF INFORMATION.—The regulations shall re-
quire that information be furnished in a form that, to the
maximum extent practicable, is easily read and understood.
(d) COVERED SOURCES.—The regulations shall apply
to the following:
(1) Pharmacies and any other dispensers of pre-
scription medications in medical facilities of the uni-
formed services.
(2) Sources of prescription medications under
any mail order pharmaceuticals program provided by
any of the administering Secretaries under chapter 55
of title 10, United States Code.
(3) Pharmacies paid under the Civilian Health
and Medical Program of the Uniformed Services (in-
cluding the TRICARE program).
(4) Pharmacies, and any other pharmaceutical
dispensers, of designated providers referred to in sec-
tion 721(5) of the National Defense Authorization Act
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for Fiscal Year 1997 (Public Law 104–201; 110 Stat.
2593; 10 U.S.C. 1073 note).
SEC. 704. HEALTH CARE SERVICES FOR CERTAIN RESERVES
WHO SERVED IN SOUTHWEST ASIA DURING
THE PERSIAN GULF WAR.
(a) REQUIREMENT.—A member of the Armed Forces
described in subsection (b) shall be entitled to medical and
dental care under chapter 55 of title 10, United States Code,
for a symptom or illness described in subsection (b)(2) to
the same extent and under the same conditions (other than
the requirement to be on active duty) as is a member of
a uniformed service who is entitled under section 1074(a)
of such title to medical and dental care under such chapter.
The Secretary shall provide such care free of charge to the
member.
(b) COVERED MEMBERS.—Subsection (a) applies to
any member of a reserve component of the Armed Forces
who—
(1) is a Persian Gulf veteran;
(2) registers a symptom or illness in the Persian
Gulf War Veterans Health Surveillance System of the
Department of Defense that is presumed under section
721(d) of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103–337; 108 Stat.
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2805; 10 U.S.C. 1074 note) to be a result of such serv-
ice; and
(3) is not otherwise entitled to medical and den-
tal care under section 1074(a) of title 10, United
States Code.
(c) DEFINITION.—In this section, the term ‘‘Persian
Gulf veteran’’ has the same meaning as in section 721(i)
of the National Defense Authorization Act for Fiscal Year
1995 (Public Law 103–337; 108 Stat. 2807; 10 U.S.C. 1074
note).
SEC. 705. COLLECTION OF DENTAL INSURANCE PREMIUMS.
(a) SELECTED RESERVE DENTAL INSURANCE.—Para-
graph (3) of section 1076b(b) of title 10, United States Code,
is amended to read as follows:
‘‘(3) The Secretary of Defense shall establish proce-
dures for the collection of the member’s share of the pre-
mium for coverage by the dental insurance plan. To the
extent that the Secretary determines practicable, a mem-
ber’s share may be deducted and withheld from the basic
pay payable to the member for inactive duty training and
from the basic pay payable to the member for active duty.’’.
(b) RETIREE DENTAL INSURANCE.—Paragraph (2) of
section 1076c(c) of title 10, United States Code, is amended
by striking out ‘‘(2) The amount of the premiums’’ and in-
serting in lieu thereof ‘‘(2) The Secretary of Defense shall
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establish procedures for the collection of the premiums
charged for coverage by the dental insurance plan. To the
extent that the Secretary determines practicable, the pre-
miums’’.
SEC. 706. DENTAL INSURANCE PLAN COVERAGE FOR RETIR-
EES OF UNIFORMED SERVICE IN THE PUBLIC
HEALTH SERVICE AND NOAA.
(a) OFFICIALS RESPONSIBLE.—Subsection (a) of sec-
tion 1076c of title 10, United States Code, is amended by
striking out ‘‘Secretary of Defense’’ and inserting in lieu
thereof ‘‘administering Secretaries’’.
(b) ELIGIBILITY.—Subsection (b)(1) of such section is
amended by striking out ‘‘Armed Forces’’ and inserting in
lieu thereof ‘‘uniformed services’’.
SEC. 707. PROSTHETIC DEVICES FOR DEPENDENTS.
(a) EXPANDED AUTHORITY.—Section 1077(a) of title
10, United States Code, is amended by adding at the end
the following:
‘‘(15) Artificial limbs, voice prostheses, and arti-
ficial eyes.
‘‘(16) Any prosthetic device not named in para-
graph (15) that is determined under regulations pre-
scribed by the Secretary of Defense to be necessary be-
cause of one or more significant impairments result-
ing from trauma, congenital anomaly, or disease.’’.
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(b) CONFORMING AMENDMENT.—Paragraph (2) of sub-
section (b) of such section is amended to read as follows:
‘‘(2) Hearing aids, orthopedic footwear, and
spectacles, except that such items may be sold, at the
cost to the United States, to dependents outside the
United States and at stations inside the United
States where adequate civilian facilities are unavail-
able.’’.
SEC. 708. SENSE OF CONGRESS REGARDING QUALITY
HEALTH CARE FOR RETIREES.
(a) FINDINGS.—Congress makes the following findings:
(1) Many retired military personnel believe that
they were promised lifetime health care in exchange
for 20 or more years of service.
(2) Military retirees are the only Federal Gov-
ernment personnel who have been prevented from
using their employer-provided health care at or after
65 years of age.
(3) Military health care has become increasingly
difficult to obtain for military retirees as the Depart-
ment of Defense reduces its health care infrastructure.
(4) Military retirees deserve to have a health care
program at least comparable with that of retirees
from civilian employment by the Federal Government.
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(5) The availability of quality, lifetime health
care is a critical recruiting incentive for the Armed
Forces.
(6) Quality health care is a critical aspect of the
quality of life of the men and women serving in the
Armed Forces.
(b) SENSE OF CONGRESS.—It is the sense of Congress
that—
(1) the United States has incurred a moral obli-
gation to provide health care to retirees from service
in the Armed Forces;
(2) it is, therefore, necessary to provide quality,
affordable health care to such retirees; and
(3) Congress and the President should take steps
to address the problems associated with health care for
such retirees within two years after the date of the en-
actment of this Act.
SEC. 709. CHIROPRACTIC HEALTH CARE DEMONSTRATION
PROGRAM.
(a) TWO-YEAR EXTENSION.—Subsection (b) of section
731 of the National Defense Authorization Act for Fiscal
Year 1995 (Public Law 103–337; 108 Stat. 2809; 10 U.S.C.
1092 note) is amended by striking out ‘‘1997’’ and inserting
in lieu thereof ‘‘1999’’.
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(b) EXPANSION
TO
AT LEAST THREE ADDITIONAL
TREATMENT FACILITIES.—Subsection (a)(2) of such section
is amended by striking out ‘‘not less than 10’’ and inserting
in lieu thereof ‘‘the National Naval Medical Center, the
Walter Reed Army Medical Center, and not less than 11
other’’
(c) REPORTS.—Subsection (c) of such section is
amended—
(1) in paragraph (1), by striking out ‘‘Commit-
tees on Armed Services of the Senate and’’ and insert-
ing in lieu thereof ‘‘Committee on Armed Services of
the Senate and the Committee on National Security
of’’;
(2) by redesignating paragraph (3) as para-
graph (4);
(3) by inserting after paragraph (2) the follow-
ing new paragraph (3):
‘‘(3)(A) Not later than January 30, 1998, the Sec-
retary of Defense shall submit to the committees referred
to in paragraph (1) a report that identifies the additional
treatment facilities designated to furnish chiropractic care
under the program that were not so designated before the
report required by paragraph (1) was prepared, together
with the plan for the conduct of the program at the addi-
tional treatment facilities.
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‘‘(B) Not later than May 1, 1998, the Secretary of De-
fense shall modify the plan for evaluating the program sub-
mitted pursuant to paragraph (2) in order to provide for
the evaluation of the program at all of the designated treat-
ment facilities, including the treatment facilities referred
to in subparagraph (B).’’; and
(4) in paragraph (4), as redesignated by paragraph
(2), by striking out ‘‘The Secretary’’ and inserting in lieu
thereof ‘‘Not later than May 1, 2000, the Secretary’’.
SEC. 710. AUTHORITY FOR AGREEMENT FOR USE OF MEDI-
CAL 
RESOURCE 
FACILITY, 
ALAMAGORDO,
NEW MEXICO.
(a) AUTHORITY.—The Secretary of the Air Force may
enter into an agreement with Gerald Champion Hospital,
Alamagordo, New Mexico (in this section referred to as the
‘‘Hospital’’), providing for the Secretary to furnish health
care services to eligible individuals in a medical resource
facility in Alamagordo, New Mexico, that is constructed,
in part, using funds provided by the Secretary under the
agreement.
(b) CONTENT OF AGREEMENT.—Any agreement en-
tered into under subsection (a) shall, at a minimum, specify
the following:
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(1) The relationship between the Hospital and
the Secretary in the provision of health care services
to eligible individuals in the facility, including—
(A) whether or not the Secretary and the
Hospital is to use and administer the facility
jointly or independently; and
(B) under what circumstances the Hospital
is to act as a provider of health care services
under the TRICARE managed care program.
(2) Matters relating to the administration of the
agreement, including—
(A) the duration of the agreement;
(B) the rights and obligations of the Sec-
retary and the Hospital under the agreement, in-
cluding any contracting or grievance procedures
applicable under the agreement;
(C) the types of care to be provided to eligi-
ble individuals under the agreement, including
the cost to the Department of the Air Force of
providing the care to eligible individuals during
the term of the agreement;
(D) the access of Air Force medical person-
nel to the facility under the agreement;
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(E) the rights and responsibilities of the
Secretary and the Hospital upon termination of
the agreement; and
(F) any other matters jointly identified by
the Secretary and the Hospital.
(3) The nature of the arrangement between the
Secretary and the Hospital with respect to the owner-
ship of the facility and any property under the agree-
ment, including—
(A) the nature of that arrangement while
the agreement is in force;
(B) the nature of that arrangement upon
termination of the agreement; and
(C) any requirement for reimbursement of
the Secretary by the Hospital as a result of the
arrangement upon termination of the agreement.
(4) The amount of the funds available under sub-
section (c) that the Secretary is to contribute for the
construction and equipping of the facility.
(5) Any conditions or restrictions relating to the
construction, equipping, or use of the facility.
(c) AVAILABILITY OF FUNDS FOR CONSTRUCTION AND
EQUIPPING OF FACILITY.—Of the amount authorized to be
appropriated by section 301(21), not more than $7,000,000
may be available for the contribution of the Secretary re-
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ferred to in subsection (b)(4) to the construction and equip-
ping of the facility described in subsection (a).
(d) NOTICE AND WAIT.—The Secretary may not enter
into the agreement authorized by subsection (a) until 90
days after the Secretary submits to the congressional defense
committees a report describing the agreement. The report
shall set forth the memorandum of agreement under sub-
section (b), the results of a cost-benefit analysis conducted
by the Secretary with respect to the agreement, and such
other information with respect to the agreement as the Sec-
retary considers appropriate.
(e) ELIGIBLE INDIVIDUAL DEFINED.—In this section,
the term ‘‘eligible individual’’ means any individual eligi-
ble for medical and dental care under chapter 55 of title
10, United States Code, including any individual entitled
to such care under section 1074(a) of that title.
SEC. 711. STUDY CONCERNING THE PROVISION OF COM-
PARATIVE INFORMATION.
(a) STUDY.—The Secretary of Defense shall conduct a
study concerning the provision of the information described
in subsection (b) to beneficiaries under the TRICARE pro-
gram established under the authority of chapter 55 of title
10, United States Code, and prepare and submit to the ap-
propriate committees of Congress a report concerning such
study.
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(b) PROVISION OF COMPARATIVE INFORMATION.—In-
formation described in this subsection, with respect to a
managed care entity that contracts with the Secretary of
Defense to provide medical assistance under the program
described in subsection (a), shall include the following:
(1) BENEFITS.—The benefits covered by the en-
tity involved, including—
(A) covered items and services beyond those
provided under a traditional fee-for-service pro-
gram;
(B) any beneficiary cost sharing; and
(C) any maximum limitations on out-of-
pocket expenses.
(2) PREMIUMS.—The net monthly premium, if
any, under the entity.
(3) SERVICE AREA.—The service area of the en-
tity.
(4) QUALITY AND PERFORMANCE.—To the extent
available, quality and performance indicators for the
benefits under the entity (and how they compare to
such indicators under the traditional fee-for-service
programs in the area involved), including—
(A) disenrollment rates for enrollees electing
to receive benefits through the entity for the pre-
vious 2 years (excluding disenrollment due to
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death or moving outside the service area of the
entity);
(B) information on enrollee satisfaction;
(C) information on health process and out-
comes;
(D) grievance procedures;
(E) the extent to which an enrollee may se-
lect the health care provider of their choice, in-
cluding health care providers within the network
of the entity and out-of-network health care pro-
viders (if the entity covers out-of-network items
and services); and
(F) an indication of enrollee exposure to
balance billing and the restrictions on coverage
of items and services provided to such enrollee by
an out-of-network health care provider.
(5) SUPPLEMENTAL BENEFITS OPTIONS.—Wheth-
er the entity offers optional supplemental benefits and
the terms and conditions (including premiums) for
such coverage.
(6) PHYSICIAN COMPENSATION.—An overall sum-
mary description as to the method of compensation of
participating physicians.
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Subtitle B—Uniformed Services
Treatment Facilities
SEC. 731. IMPLEMENTATION OF DESIGNATED PROVIDER
AGREEMENTS 
FOR 
UNIFORMED 
SERVICES
TREATMENT FACILITIES.
(a) COMMENCEMENT
OF HEALTH CARE SERVICES
UNDER AGREEMENT.—Subsection (c) of section 722 of the
National Defense Authorization Act for fiscal year 1997
(Public Law 104–201; 10 U.S.C. 1073 note) is amended—
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B);
(2) by inserting ‘‘(1)’’ before ‘‘Unless’’; and
(3) by adding at the end the following new para-
graph:
‘‘(2) The Secretary may modify the effective date
established under paragraph (1) for an agreement to
permit a transition period of not more than six
months between the date on which the agreement is
executed by the parties and the date on which the des-
ignated provider commences the delivery of health
care services under the agreement.’’.
(b) TEMPORARY CONTINUATION OF EXISTING PARTICI-
PATION AGREEMENTS.—Subsection (d) of such section is
amended by inserting before the period at the end the follow-
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ing: ‘‘, including any transitional period provided by the
Secretary under paragraph (2) of such subsection’’.
(c) ARBITRATION.—Subsection (c) of such section is
further amended by adding at the end the following new
paragraph:
‘‘(3) In the case of a designated provider whose
service area has a managed care support contract im-
plemented under the TRICARE program as of Sep-
tember 23, 1996, the Secretary and the designated
provider shall submit to binding arbitration if the
agreement has not been executed by October 1, 1997.
The arbitrator, mutually agreed upon by the Sec-
retary and the designated provider, shall be selected
from the American Arbitration Association. The arbi-
trator shall develop an agreement that shall be exe-
cuted by the Secretary and the designated provider by
January 1, 1998. Notwithstanding paragraph (1), the
effective date for such agreement shall be not more
than six months after the date on which the agree-
ment is executed.’’.
(d) CONTRACTING OUT
OF PRIMARY CARE SERV-
ICES.—Subsection (f)(2) of such section is amended by in-
serting at the end the following new sentence: ‘‘Such limita-
tion on contracting out primary care services shall only
apply to contracting out to a health maintenance organiza-
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tion, or to a licensed insurer that is not controlled directly
or indirectly by the designated provider, except in the case
of primary care contracts between a designated provider
and a contractor in force as of September 23, 1996. Subject
to the overall enrollment restriction under section 724 and
limited to the historical service area of the designated pro-
vider, professional service agreements or independent con-
tractor agreements with primary care physicians or groups
of primary care physicians, however organized, and em-
ployment agreements with such physicians shall not be con-
sidered to be the type of contracts that are subject to the
limitation of this subsection, so long as the designated pro-
vider itself remains at risk under its agreement with the
Secretary in the provision of services by any such con-
tracted physicians or groups of physicians.’’.
(e) UNIFORM BENEFIT.—Section 723(b) of the Na-
tional Defense Authorization Act for fiscal year 1997 (Pub-
lic Law 104–201; 10 U.S.C. 1073 note) is amended—
(1) in subsection (1), by inserting before the pe-
riod at the end the following: ‘‘, subject to any modi-
fication to the effective date the Secretary may pro-
vide pursuant to section 722(c)(2)’’, and
(2) in subsection (2), by inserting before the pe-
riod at the end the following: ’’, or the effective date
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of 
agreements 
negotiated 
pursuant 
to 
section
722(c)(3)’’.
SEC. 732. LIMITATION ON TOTAL PAYMENTS.
Section 726(b) of the National Defense Authorization
Act for fiscal year 1997 (Public Law 104–201; 10 U.S.C.
1073 note) is amended by adding at the end the following
new sentence: ‘‘In establishing the ceiling rate for enrollees
with the designated providers who are also eligible for the
Civilian Health and Medical Program of the Uniformed
Services, the Secretary of Defense shall take into account
the health status of the enrollees.’’.
SEC. 733. CONTINUED ACQUISITION OF REDUCED-COST
DRUGS.
Section 722 of the National Defense Authorization Act
for fiscal year 1997 (Public Law 104–201; 10 U.S.C. 1073
note) is amended by adding at the end the following new
subsection:
‘‘(g) CONTINUED ACQUISITION
OF REDUCED-COST
DRUGS.—A designated provider shall be treated as part of
the Department of Defense for purposes of section 8126 of
title 38, United States Code, in connection with the provi-
sion by the designated provider of health care services to
covered beneficiaries pursuant to the participation agree-
ment of the designated provider under section 718(c) of the
National Defense Authorization Act for fiscal year 1991
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(Public Law 101–510; 42 U.S.C. 248c note) or pursuant
to the agreement entered into under subsection (b).’’.
Subtitle C—Persian Gulf Illnesses
SEC. 751. DEFINITIONS.
For purposes of this subtitle:
(1) The term ‘‘Gulf War illness’’ means any one
of the complex of illnesses and symptoms 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.
(2) The term ‘‘Persian Gulf War’’ has the mean-
ing given that term in section 101 of title 38, United
States Code.
(3) The term ‘‘Persian Gulf veteran’’ means an
individual who served on active duty in the Armed
Forces in the Southwest Asia theater of operations
during the Persian Gulf War.
(4) The term ‘‘contingency operation’’ has the
meaning given that term in section 101(a) of title 10,
United States Code, and includes a humanitarian op-
eration, peacekeeping operation, or similar operation.
SEC. 752. PLAN FOR HEALTH CARE SERVICES FOR PERSIAN
GULF VETERANS.
(a) PLAN REQUIRED.—The Secretary of Defense and
the Secretary of Veterans Affairs, acting jointly, shall pre-
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pare a plan to provide appropriate health care to Persian
Gulf veterans (and their dependents) who suffer from a Gulf
War illness.
(b) CONTENT OF PLAN.—In preparing the plan, the
Secretaries shall—
(1) use the presumptions of service connection
and illness specified in paragraphs (1) and (2) of sec-
tion 721(d) of the National Defense Authorization Act
for Fiscal Year 1995 (Public Law 103–337; 10 U.S.C.
1074 note) to determine the Persian Gulf veterans
(and the dependents of Persian Gulf veterans) who
should be covered by the plan;
(2) consider the need and methods available to
provide health care services to Persian Gulf veterans
who are no longer on active duty in the Armed
Forces, such as Persian Gulf veterans who are mem-
bers of the reserve components and Persian Gulf veter-
ans who have been separated from the Armed Forces;
and
(3) estimate the costs to the Government of pro-
viding full or partial health care services under the
plan to covered Persian Gulf veterans (and their cov-
ered dependents).
(c) FOLLOWUP TREATMENT.—The plan required by
subsection (a) shall specifically address the measures to be
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used to monitor the quality, appropriateness, and effective-
ness of, and patient satisfaction with, health care services
provided to Persian Gulf veterans after their initial medical
examination as part of registration in the Persian Gulf
War Veterans Health Registry or the Comprehensive Clini-
cal Evaluation Program.
(d) SUBMISSION OF PLAN.—Not later than March 15,
1998, the Secretaries shall submit to Congress the plan re-
quired by subsection (a).
SEC. 753. IMPROVED MEDICAL TRACKING SYSTEM FOR
MEMBERS DEPLOYED OVERSEAS IN CONTIN-
GENCY OR COMBAT OPERATIONS.
(a) SYSTEM REQUIRED.—Chapter 55 of title 10, Unit-
ed States Code, is amended by inserting after section 1074d
the following new section:
‘‘§ 1074e. Medical tracking system for members de-
ployed overseas
‘‘(a) SYSTEM REQUIRED.—The Secretary of Defense
shall establish a system to assess the medical condition of
members of the armed forces (including members of the re-
serve components) who are deployed outside the United
States or its territories or possessions as part of a contin-
gency operation (including a humanitarian operation,
peacekeeping operation, or similar operation) or combat op-
eration.
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‘‘(b) ELEMENTS OF SYSTEM.—The system shall in-
clude the use of predeployment medical examinations and
postdeployment medical examinations (including an assess-
ment of mental health and the drawing of blood samples)
to accurately record the medical condition of members before
their deployment and any changes in their medical condi-
tion during the course of their deployment. The
postdeployment examination shall be conducted when the
member is redeployed or otherwise leaves an area in which
the system is in operation (or as soon as possible thereafter).
‘‘(c) RECORDKEEPING.—The Secretary of Defense shall
submit to Congress not later than March 15, 1998, a plan
to ensure that the results of all medical examinations con-
ducted under the system, records of all health care services
(including immunizations) received by members described
in subsection (a) in anticipation of their deployment or
during the course of their deployment, and records of events
occurring in the deployment area that may affect the health
of such members shall be retained and maintained in a cen-
tralized location or locations to improve future access to the
records. The report shall include a schedule for implementa-
tion of the plan completion within 2 years of enactment.
‘‘(d) QUALITY ASSURANCE.—The Secretary of Defense
shall establish a quality assurance program to evaluate the
success of the system in ensuring that members described
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in subsection (a) receive predeployment medical examina-
tions and postdeployment medical examinations and that
the recordkeeping requirements are met.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by inserting after
the item relating to section 1074d the following new item:
‘‘1074e. Medical tracking system for members deployed overseas.’’.
SEC. 754. REPORT ON PLANS TO TRACK LOCATION OF MEM-
BERS IN A THEATER OF OPERATIONS.
Not later than March 1, 1998, the Secretary of Defense
shall submit to Congress a report containing a plan for col-
lecting and maintaining information regarding the daily
location of units of the Armed Forces, and to the extent
practicable individual members of such units, serving in
a theater of operations during a contingency operation or
combat operation.
SEC. 755. REPORT ON PLANS TO IMPROVE DETECTION AND
MONITORING 
OF 
CHEMICAL, 
BIOLOGICAL,
AND ENVIRONMENTAL HAZARDS IN A THEA-
TER OF OPERATIONS.
Not later than March 1, 1998, the Secretary of Defense
shall submit to Congress a report containing a plan regard-
ing the deployment, in a theater of operations during a con-
tingency operation or combat operation, of a specialized
unit of the Armed Forces with the capability and expertise
to detect and monitor the presence of chemical hazards, bio-
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logical hazards, and environmental hazards to which mem-
bers of the Armed Forces may be exposed.
SEC. 756. NOTICE OF USE OF DRUGS UNAPPROVED FOR
THEIR INTENDED USAGE.
(a) NOTICE REQUIREMENTS.—Chapter 55 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 1107. Notice of use of investigational new drugs
‘‘(a) NOTICE REQUIRED.—(1) Whenever the Secretary
of Defense requests or requires a member of the armed forces
to receive a drug unapproved for its intended use, the Sec-
retary shall provide the member with notice containing the
information specified in subsection (d).
‘‘(2) The Secretary shall also ensure that medical care
providers who administer a drug unapproved for its in-
tended use or who are likely to treat members who receive
such a drug receive the information required to be provided
under paragraphs (3) and (4) of subsection (d).
‘‘(b) TIME FOR NOTICE.—The notice required to be
provided to a member under subsection (a)(1) shall be pro-
vided before the drug is first administered to the member,
if practicable, but in no case later than 30 days after the
drug is first administered to the member.
‘‘(c) FORM OF NOTICE.—The notice required under
subsection (a)(1) shall be provided in writing unless the
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Secretary of Defense determines that the use of written no-
tice is impractical because of the number of members receiv-
ing the unapproved drug, time constraints, or similar rea-
sons. If the Secretary provides notice under subsection
(a)(1) in a form other than in writing, the Secretary shall
submit to Congress a report describing the notification
method used and the reasons for the use of the alternative
method.
‘‘(d) CONTENT OF NOTICE.—The notice required under
subsection (a)(1) shall include the following:
‘‘(1) Clear notice that the drug being adminis-
tered has not been approved for its intended usage.
‘‘(2) The reasons why the unapproved drug is
being administered.
‘‘(3) Information regarding the possible side ef-
fects of the unapproved drug, including any known
side effects possible as a result of the interaction of the
drug with other drugs or treatments being adminis-
tered to the members receiving the drug.
‘‘(4) Such other information that, as a condition
for authorizing the use of the unapproved drug, the
Secretary of Health and Human Services may re-
quire to be disclosed.
‘‘(e) RECORDS OF USE.—The Secretary of Defense
shall ensure that the medical records of members accurately
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document the receipt by members of any investigational
new drug and the notice required by subsection (d).
‘‘(f) DEFINITION.—In this section, the term ‘investiga-
tional new drug’ means a drug covered by section 505(i)
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C.
355(i)).’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘1107. Notice of use of drugs unapproved for their intended usage.’’.
SEC. 757. REPORT ON EFFECTIVENESS OF RESEARCH EF-
FORTS REGARDING GULF WAR ILLNESSES.
Not later than March 1, 1998, the Secretary of Defense
shall submit to Congress a report evaluating the effective-
ness of medical research initiatives regarding Gulf War ill-
nesses. The report shall address the following:
(1) The type and effectiveness of previous re-
search efforts, including the activities undertaken pur-
suant to section 743 of the National Defense Author-
ization Act for Fiscal Year 1997 (Public Law 104–
201; 10 U.S.C. 1074 note), section 722 of the National
Defense Authorization Act for Fiscal Year 1995 (Pub-
lic Law 103–337; 10 U.S.C. 1074 note), and sections
270 and 271 of the National Defense Authorization
Act for Fiscal Year 1994 (Public Law 103–160; 107
Stat. 1613).
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(2) Recommendations regarding additional re-
search regarding Gulf War illnesses, including re-
search regarding the nature and causes of Gulf War
illnesses and appropriate treatments for such illnesses.
(3) The adequacy of Federal funding and the
need for additional funding for medical research ini-
tiatives regarding Gulf War illnesses.
SEC. 758. PERSIAN GULF ILLNESS CLINICAL TRIALS PRO-
GRAM.
(a) FINDINGS.—Congress finds the following:
(1) There are many ongoing studies that inves-
tigate risk factors which may be associated with the
health problems experienced by Persian Gulf veterans;
however, there have been no studies that examine
health outcomes and the effectiveness of the treatment
received by such veterans.
(2) The medical literature and testimony pre-
sented in hearings on Gulf War illnesses indicate that
there are therapies, such as cognitive behavioral ther-
apy, that have been effective in treating patients with
symptoms similar to those seen in many Persian Gulf
veterans.
(b) ESTABLISHMENT OF PROGRAM.—The Secretary of
Defense and the Secretary of Veterans Affairs, acting joint-
ly, shall establish a program of cooperative clinical trials
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at multiple sites to assess the effectiveness of protocols for
treating Persian Gulf veterans who suffer from ill-defined
or undiagnosed conditions. Such protocols shall include a
multidisciplinary treatment model, of which cognitive be-
havioral therapy is a component.
(c) FUNDING.—Of the amount authorized to be appro-
priated in section 201(1), the sum of $4,500,000 shall be
available for program element 62787A (medical technology)
in the budget of the Department of Defense for fiscal year
1998 to carry out the clinical trials program established
pursuant to subsection (b).
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
Subtitle A—Amendments to General
Contracting Authorities, Proce-
dures, and Limitations
SEC. 801. STREAMLINED APPROVAL REQUIREMENTS FOR
CONTRACTS UNDER INTERNATIONAL AGREE-
MENTS.
Section 2304(f)(2)(E) of title 10, United States Code,
is amended by striking out ‘‘and such document is approved
by the competition advocate for the procuring activity’’.
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SEC. 802. RESTRICTION ON UNDEFINITIZED CONTRACT AC-
TIONS.
(a) APPLICABILITY OF WAIVER AUTHORITY TO HU-
MANITARIAN
OR
PEACEKEEPING
OPERATIONS.—Section
2326(b)(4) of title 10, United States Code, is amended to
read as follows:
‘‘(4) The head of an agency may waive the provisions
of this subsection with respect to a contract of that agency
if that head of an agency determines that the waiver is nec-
essary in order to support any of the following operations:
‘‘(A) A contingency operation.
‘‘(B) A humanitarian or peacekeeping oper-
ation.’’.
(b) HUMANITARIAN
OR PEACEKEEPING OPERATION
DEFINED.—Section 2302(7) of such title is amended—
(1) by striking out ‘‘(7)(A)’’ and inserting in
lieu thereof ‘‘(7)’’; and
(2) by striking out ‘‘(B) In subparagraph (A),
the’’ and inserting in lieu thereof ‘‘(8) The’’.
SEC. 803. EXPANSION OF AUTHORITY TO CROSS FISCAL
YEARS TO ALL SEVERABLE SERVICE CON-
TRACTS NOT EXCEEDING A YEAR.
(a) EXPANDED AUTHORITY.—Section 2410a of title
10, United States Code, is amended to read as follows:
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‘‘§ 2410a. Severable service contracts for periods cross-
ing fiscal years
‘‘(a) AUTHORITY.—The Secretary of Defense or the
Secretary of a military department may enter into a con-
tract for procurement of severable services for a period that
begins in one fiscal year and ends in the next fiscal year
if (without regard to any option to extend the period of
the contract) the contract period does not exceed one year.
‘‘(b) OBLIGATION OF FUNDS.—Funds made available
for a fiscal year may be obligated for the total amount of
a contract entered into under the authority of subsection
(a).’’.
(b) CLERICAL AMENDMENT.—The item relating to
such section in the table of sections at the beginning of chap-
ter 141 of such title is amended to read as follows:
‘‘2410a. Severable service contracts for periods crossing fiscal years.’’.
SEC. 804. LIMITATION ON ALLOWABILITY OF COMPENSA-
TION FOR CERTAIN CONTRACTOR PERSON-
NEL.
(a) CERTAIN COMPENSATION NOT ALLOWABLE
AS
COSTS
UNDER
DEFENSE
CONTRACTS.—(1) Subsection
(e)(1) of section 2324 of title 10, United States Code, is
amended by adding at the end the following:
‘‘(P) Costs of compensation of senior executives
of contractors for a fiscal year, to the extent that such
compensation exceeds the benchmark compensation
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amount determined applicable for the fiscal year by
the Administrator for Federal Procurement Policy
under section 39 of the Office of Federal Procurement
Policy Act (41 U.S.C. 435).’’.
(2) Subsection (l) of such section is amended by adding
at the end the following:
‘‘(4) The term ‘compensation’, for a fiscal year,
means the total amount of wages, salary, bonuses and
deferred compensation for the fiscal year, whether
paid, earned, or otherwise accruing, as recorded in an
employer’s cost accounting records for the fiscal year.
‘‘(5) The term ‘senior executive’, with respect to
a contractor, means—
‘‘(A) the chief executive officer of the con-
tractor or any individual acting in a similar ca-
pacity for the contractor;
‘‘(B) the five most highly compensated em-
ployees in management positions of the contrac-
tor other than the chief executive officer; and
‘‘(C) in the case of a contractor that has
components managed by personnel who report on
the operations of the components directly to offi-
cers of the contractor, the five most highly com-
pensated individuals in management positions
at each such component.’’.
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(b) CERTAIN COMPENSATION NOT ALLOWABLE
AS
COSTS UNDER NON-DEFENSE CONTRACTS.—(1) Subsection
(e)(1) of section 306 of the Federal Property and Adminis-
trative Services Act of 1949 (41 U.S.C. 256) is amended
by adding at the end the following:
‘‘(P) Costs of compensation of senior executives
of contractors for a fiscal year, to the extent that such
compensation exceeds the benchmark compensation
amount determined applicable for the fiscal year by
the Administrator for Federal Procurement Policy
under section 39 of the Office of Federal Procurement
Policy Act (41 U.S.C. 435).’’.
(2) Such section is further amended by adding at the
end the following:
‘‘(m) OTHER DEFINITIONS.—In this section:
‘‘(1) The term ‘compensation’, for a fiscal year,
means the total amount of wages, salary, bonuses and
deferred compensation for the fiscal year, whether
paid, earned, or otherwise accruing, as recorded in an
employer’s cost accounting records for the fiscal year.
‘‘(2) The term ‘senior executive’, with respect to
a contractor, means—
‘‘(A) the chief executive officer of the con-
tractor or any individual acting in a similar ca-
pacity for the contractor;
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‘‘(B) the five most highly compensated em-
ployees in management positions of the contrac-
tor other than the chief executive officer; and
‘‘(C) in the case of a contractor that has
components managed by personnel who report on
the operations of the components directly to offi-
cers of the contractor, the five most highly com-
pensated individuals in management positions
at each such component.’’.
(c) LEVELS OF COMPENSATION NOT ALLOWABLE.—(1)
The Office of Federal Procurement Policy Act (41 U.S.C.
401 et seq.) is amended by adding at the end the following:
‘‘SEC. 39. LEVELS OF COMPENSATION OF CERTAIN CON-
TRACTOR PERSONNEL NOT ALLOWABLE AS
COSTS UNDER CERTAIN CONTRACTS.
‘‘(a) DETERMINATION REQUIRED.—For purposes of
section 2324(e)(1)(P) of title 10, United States Code, and
section 306(e)(1)(P) of the Federal Property and Adminis-
trative Services Act of 1949 (41 U.S.C. 256(e)(1)(P)), the
Administrator shall review commercially available surveys
of executive compensation and, on the basis of the results
of the review, determine a benchmark compensation amount
to apply for each fiscal year. In making determinations
under this subsection the Administrator shall consult with
the Director of the Defense Contract Audit Agency and such
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other officials of executive agencies as the Administrator
considers appropriate.
‘‘(b) BENCHMARK
COMPENSATION
AMOUNT.—The
benchmark compensation amount applicable for a fiscal
year is the median amount of the compensation provided
for all senior executives of all benchmark corporations for
the most recent year for which data is available at the time
the determination under subsection (a) is made.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) The term ‘compensation’, for a year, means
the total amount of wages, salary, bonuses and de-
ferred compensation for the year, whether paid,
earned, or otherwise accruing, as recorded in an em-
ployer’s cost accounting records for the year.
‘‘(2) The term ‘senior executive’, with respect to
a corporation, means—
‘‘(A) the chief executive officer of the cor-
poration or any individual acting in a similar
capacity for the corporation;
‘‘(B) the five most highly compensated em-
ployees in management positions of the corpora-
tion other than the chief executive officer; and
‘‘(C) in the case of a corporation that has
components managed by personnel who report on
the operations of the components directly to offi-
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cers of the corporation, the five most highly com-
pensated individuals in management positions
at each such component.
‘‘(3) The term ‘benchmark corporation’, with re-
spect to a year, means a publicly-owned United
States corporation that has annual sales in excess of
$50,000,000 for the year.
‘‘(4) The term ‘publicly-owned United States cor-
poration’ means a corporation organized under the
laws of a State of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, or a
possession of the United States the voting stock of
which is publicly traded.’’.
(2) The table of sections in section 1(b) of such Act
is amended by adding at the end the following:
‘‘Sec. 39. Levels of compensation of certain contractor personnel not allowable as
costs under certain contracts.’’.
(d) REGULATIONS.—Regulations implementing the
amendments made by this section shall be published in the
Federal Register not later than the effective date of the
amendments under subsection (e).
(e) EFFECTIVE DATE.—(1) The amendments made by
this section shall take effect on the date that is 90 days after
the date of the enactment of this Act and shall apply with
respect to payments that become due from the United States
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after that date under covered contracts entered into before,
on, or after that date.
(2) In paragraph (1), the term ‘‘covered contract’’ has
the meaning given such term in section 2324(l) of title 10,
United States Code, and section 306(l) of the Federal Prop-
erty and Administrative Services Act of 1949 (41 U.S.C.
256(l)).
SEC. 805. INCREASED PRICE LIMITATION ON PURCHASES
OF RIGHT-HAND DRIVE VEHICLES.
Section 2253(a)(2) of title 10, United States Code, is
amended by striking out ‘‘$12,000’’ and inserting in lieu
thereof ‘‘$30,000’’.
SEC. 806. CONVERSION OF DEFENSE CAPABILITY PRESER-
VATION AUTHORITY TO NAVY SHIPBUILDING
CAPABILITY PRESERVATION AUTHORITY.
(a) AUTHORITY OF SECRETARY OF THE NAVY.—Sec-
tion 808 of the National Defense Authorization Act for Fis-
cal Year 1996 (Public Law 104–106; 110 Stat. 393; 10
U.S.C. 2501) is amended—
(1) in subsection (a), by striking out ‘‘Secretary
of Defense’’ and inserting in lieu thereof ‘‘Secretary
of the Navy’’; and
(2) in subsection (b)(2), by striking out ‘‘Sec-
retary of Defense if the Secretary of Defense’’ and in-
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serting in lieu thereof ‘‘Secretary of the Navy if the
Secretary’’.
(b) NAME OF AGREEMENTS.—Subsection (a) of such
section is amended—
(1) by striking out ‘‘DEFENSE
CAPABILITY
PRESERVATION AGREEMENT.—’’ and inserting in lieu
thereof ‘‘SHIPBUILDING CAPABILITY PRESERVATION
AGREEMENT.—’’; and
(2) by striking out ‘‘ ‘defense capability preserva-
tion agreement’ ’’ and inserting in lieu thereof ‘‘ ‘ship-
building capability preservation agreement’ ’’.
(c) SCOPE OF AUTHORITY.—(1) The first sentence of
subsection (a) of such section is amended—
(A) by striking out ‘‘defense contractor’’ and in-
serting in lieu thereof ‘‘shipbuilder’’; and
(B) by adding at the end the following ‘‘to the
shipbuilder under a Navy contract for the construc-
tion of a ship’’.
(2) Subsection (b)(1)(A) of such section is amended by
striking out ‘‘defense contract’’ and inserting in lieu thereof
‘‘contract for the construction of a ship for the Navy’’.
(d) MAXIMUM AMOUNT
OF ALLOCABLE INDIRECT
COSTS.—Subsection (b)(1)(C) of such section is amended—
(1) by striking out ‘‘in any year of’’ and insert-
ing in lieu thereof ‘‘covered by’’; and
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(2) by striking out ‘‘that year’’ and inserting in
lieu thereof ‘‘the period covered by the agreement’’.
(e) APPLICABILITY.—Such section is further amended
by striking out subsections (c), (d), and (e) and inserting
in lieu thereof the following:
‘‘(c) APPLICABILITY.—(1) An agreement entered into
with a shipbuilder under subsection (a) shall apply to each
of the following Navy contracts with the shipbuilder:
‘‘(A) A contract that is in effect on the date on
which the agreement is entered into.
‘‘(B) A contract that is awarded during the term
of the agreement.
‘‘(2) In a shipbuilding capability preservation agree-
ment applicable to a shipbuilder, the Secretary may agree
to apply the cost reimbursement rules set forth in subsection
(b) to allocations of indirect costs to private sector work
performed by the shipbuilder only with respect to costs that
the shipbuilder incurred on or after the date of the enact-
ment of the National Defense Authorization Act for Fiscal
Year 1998 under a contract between the shipbuilder and
a private sector customer of the shipbuilder that became ef-
fective on or after January 26, 1996.’’.
(f) IMPLEMENTATION AND REPORT.—Such section is
further amended adding at the end the following:
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‘‘(d) IMPLEMENTATION.—Not later than 30 days after
the date of the enactment of the National Defense Authoriza-
tion Act for Fiscal Year 1998, the Secretary of the Navy
shall establish application procedures and procedures for
expeditious consideration of shipbuilding capability preser-
vation agreements as authorized by this section.
‘‘(e) REPORT.—Not later than February 15, 1998, the
Secretary of the Navy shall submit to the congressional de-
fense committees a report on applications for shipbuilding
capability preservation agreements. The report shall con-
tain the number of the applications received, the number
of the applications approved, and a discussion of the rea-
sons for disapproval of any applications disapproved.’’.
(g) SECTION HEADING.—The heading for such section
is amended by striking out ‘‘DEFENSE’’ and inserting in
lieu thereof ‘‘CERTAIN’’.
SEC. 807. ELIMINATION OF CERTIFICATION REQUIREMENT
FOR GRANTS.
Section 5153 of the Drug-Free Workplace Act of 1988
(Public Law 100–690; 102 Stat. 4306; 41 U.S.C. 702) is
amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking out ‘‘has
certified to the granting agency that it will’’ and
inserting in lieu thereof ‘‘agrees to’’; and
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(B) in paragraph (2), by striking out ‘‘cer-
tifies to the agency’’ and inserting in lieu thereof
‘‘agrees’’; and
(2) in subsection (b)(1)—
(A) by striking out subparagraph (A);
(B) by redesignating subparagraphs (B)
and (C) as subparagraphs (A) and (B), respec-
tively; and
(C) in subparagraph (A), as so redesig-
nated, by striking out ‘‘such certification by fail-
ing to carry out’’.
SEC. 808. REPEAL OF LIMITATION ON ADJUSTMENT OF
SHIPBUILDING CONTRACTS.
(a) REPEAL.—(1) Section 2405 of title 10, United
States Code, is repealed.
(2) The table of sections at the beginning of chapter
141 of such title is amended by striking out the item relat-
ing to section 2405.
(b) APPLICABILITY.—(1) Except as provided in para-
graph (2), the amendments made by subsection (a) shall
apply to claims, requests for equitable adjustment, and de-
mands for payment under shipbuilding contracts that have
been or are submitted before, on, or after the date of the
enactment of this Act.
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(2) Section 2405 of title 10, United States Code, as
in effect immediately before the date of the enactment of
this Act, shall continue to apply to a contractor’s claim,
request for equitable adjustment, or demand for payment
under a shipbuilding contract that was submitted before
such date if—
(A) a contracting officer denied the claim, re-
quest, or demand, and the period for appealing the
decision to a court or board under the Contract Dis-
putes Act of 1978 expired before such date;
(B) a court or board of contract appeals consid-
ering the claim, request, or demand (including any
appeal of a decision of a contracting officer to deny
or dismiss the claim, request, or demand) denied the
claim, request, or demand (or the appeal), and the ac-
tion of the court or board became final and
unappealable before such date; or
(C) the contractor released or releases the claim,
request, or demand.
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SEC. 
809. 
BLANKET 
WAIVER 
OF 
CERTAIN 
DOMESTIC
SOURCE 
REQUIREMENTS 
FOR 
FOREIGN
COUNTRIES WITH CERTAIN COOPERATIVE OR
RECIPROCAL 
RELATIONSHIPS 
WITH 
THE
UNITED STATES.
(a) AUTHORITY.—(1) Section 2534 of title 10, United
States Code, is amended by adding at the end the following:
‘‘(i) WAIVER GENERALLY APPLICABLE TO A COUN-
TRY.—The Secretary of Defense shall waive the limitation
in subsection (a) with respect to a foreign country generally
if the Secretary determines that the application of the limi-
tation with respect to that country would impede coopera-
tive programs entered into between the Department of De-
fense and the foreign country, or would impede the recip-
rocal procurement of defense items entered into under sec-
tion 2531 of this title, and the country does not discrimi-
nate against defense items produced in the United States
to a greater degree than the United States discriminates
against defense items produced in that country.’’.
(2) The amendment made by paragraph (1) shall
apply with respect to—
(A) contracts entered into on or after the date of
the enactment of this Act; and
(B) options for the procurement of items that are
exercised after such date under contracts that are en-
tered into before such date if those option prices are
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adjusted for any reason other than the application of
a waiver granted under subsection (i) of section 2534
of title 10, United States Code (as added by para-
graph (1)).
(b) CONFORMING AMENDMENT.—The heading of sub-
section (d) of such section is amended by inserting ‘‘FOR
PARTICULAR PROCUREMENTS’’ after ‘‘WAIVER AUTHOR-
ITY’’.
Subtitle B—Contract Provisions
SEC. 811. CONTRACTOR GUARANTEES OF MAJOR SYSTEMS.
(a) REVISION
OF REQUIREMENT.—Section 2403 of
title 10, United States Code, is amended to read as follows:
‘‘§ 2403. Major systems: contractor guarantees
‘‘(a) GUARANTEE REQUIRED.—In any case in which
the head of an agency determines that it is appropriate and
cost effective to do so in entering into a contract for the
production of a major system, the head of an agency shall,
except as provided in subsection (b), require the prime con-
tractor to provide the United States with a written guaran-
tee that—
‘‘(1) the item provided under the contract will
conform to the design and manufacturing require-
ments specifically delineated in the production con-
tract (or in any amendment to that contract);
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‘‘(2) the item provided under the contract will be
free from all defects in materials and workmanship at
the time it is delivered to the United States;
‘‘(3) the item provided under the contract will
conform to the essential performance requirements of
the item as specifically delineated in the production
contract (or in any amendment to that contract); and
‘‘(4) if the item provided under the contract fails
to meet a guarantee required under paragraph (1),
(2), or (3), the contractor will, at the election of the
Secretary of Defense or as otherwise provided in the
contract—
‘‘(A) promptly take such corrective action
as may be necessary to correct the failure at no
additional cost to the United States; or
‘‘(B) pay costs reasonably incurred by the
United States in taking such corrective action.
‘‘(b) EXCEPTION.—The head of an agency may not re-
quire a prime contractor under subsection (a) to provide
a guarantee for a major system, or for a component of a
major system, that is furnished by the United States.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) The term ‘prime contractor’ means a party
that enters into an agreement directly with the Unit-
ed States to furnish part or all of a major system.
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‘‘(2) The term ‘design and manufacturing re-
quirements’ means structural and engineering plans
and manufacturing particulars, including precise
measurements, tolerances, materials, and finished
product tests for the major system being produced.
‘‘(3) The term ‘essential performance require-
ments’, with respect to a major system, means the op-
erating capabilities or maintenance and reliability
characteristics of the system that are determined by
the Secretary of Defense to be necessary for the system
to fulfill the military requirement for which the sys-
tem is designed.
‘‘(4) The term ‘component’ means any constitu-
ent element of a major system.
‘‘(5) The term ‘head of an agency’ has the mean-
ing given that term in section 2302 of this title.’’.
(b) CLERICAL AMENDMENT.—The item relating to
such section in the table of sections at the beginning of chap-
ter 141 of such title is amended to read as follows:
‘‘2403. Major systems: contractor guarantees.’’.
SEC. 812. VESTING OF TITLE IN THE UNITED STATES
UNDER CONTRACTS PAID UNDER PROGRESS
PAYMENT ARRANGEMENTS OR SIMILAR AR-
RANGEMENTS.
Section 2307 of title 10, United States Code, is amend-
ed—
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(1) by redesignating subsection (h) as subsection
(i); and
(2) by inserting after subsection (g) the following
new subsection (h):
‘‘(h) VESTING OF TITLE IN THE UNITED STATES.—
If a contract paid by a method authorized under subsection
(a)(1) provides for title to property to vest in the United
States, the title to the property shall vest in accordance with
the terms of the contract, regardless of any security interest
in the property that is asserted before or after the contract
is entered into.’’.
Subtitle C—Acquisition Assistance
Programs
SEC. 821. PROCUREMENT TECHNICAL ASSISTANCE PRO-
GRAMS.
(a) FUNDING.—Of the amount authorized to be appro-
priated 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 1998 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
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in distressed areas referred to in subparagraph (B) of sec-
tion 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 Ad-
ministration Services regions in accordance with section
2415 of such title.
SEC. 822. ONE-YEAR EXTENSION OF PILOT MENTOR-PRO-
TEGE PROGRAM.
Section 831(j) of the National Defense Authorization
Act for Fiscal Year 1991 (10 U.S.C. 2302 note) is amend-
ed—
(1) in paragraph (1), by striking out ‘‘1998’’
and inserting in lieu thereof ‘‘1999’’;
(2) in paragraph (2), by striking out ‘‘1999’’
and inserting in lieu thereof ‘‘2000’’; and
(3) in paragraph (3), by striking out ‘‘1999’’
and inserting in lieu thereof ‘‘2000’’.
SEC. 823. TEST PROGRAM FOR NEGOTIATION OF COM-
PREHENSIVE SUBCONTRACTING PLANS.
(a) CONTENT
OF SUBCONTRACTING PLANS.—Sub-
section (b)(2) of section 834 of the National Defense Author-
ization Act for Fiscal Years 1990 and 1991 (Public Law
101–189; 15 U.S.C. 637 note) is amended—
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(1) by striking out ‘‘plan—’’ and inserting in
lieu thereof ‘‘plan of a contractor—’’;
(2) by striking out subparagraph (A);
(3) by redesignating subparagraph (B) as sub-
paragraph (A) and by striking out the period at the
end of such subparagraph and inserting in lieu there-
of ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(B) shall cover each Department of Defense con-
tract that is entered into by the contractor and each
subcontract that is entered into by the contractor as
the subcontractor under a Department of Defense con-
tract.’’.
(b) EXTENSION OF PROGRAM.—Subsection (e) of such
section is amended by striking out ‘‘September 30, 1998’’
in the second sentence and inserting in lieu thereof ‘‘Sep-
tember 30, 2000.’’.
SEC. 824. PRICE PREFERENCE FOR SMALL AND DISADVAN-
TAGED BUSINESSES.
Section 2323(e)(3) of title 10, United States Code, is
amended by—
(1) inserting ‘‘(A)’’ after ‘‘(3)’’;
(2) inserting ‘‘, except as provided in (B),’’ after
‘‘the head of an agency may’’ in the first sentence;
and
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(3) adding at the end the following:
‘‘(B) The Secretary of Defense may not exercise the au-
thority under subparagraph (A) to enter into a contract
for a price exceeding fair market cost in any fiscal year
following a fiscal year in which the Department of Defense
attained the 5 percent goal required by subsection (a).’’.
Subtitle D—Administrative
Provisions
SEC. 831. RETENTION OF EXPIRED FUNDS DURING THE
PENDENCY OF CONTRACT LITIGATION.
(a) IN GENERAL.—Chapter 141 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 2410m. Retention of amounts collected from con-
tractor during the pendency of contract
dispute
‘‘(a) RETENTION OF FUNDS.—Notwithstanding sec-
tions 1552(a) and 3302(b) of title 31, any amount, includ-
ing interest, collected from a contractor as a result of a
claim made by an executive agency under the Contract Dis-
putes Act of 1978 (41 U.S.C. 601 et seq.), shall remain
available in accordance with this section to pay—
‘‘(1) any settlement of the claim by the parties;
‘‘(2) any judgment rendered in the contractor’s
favor on an appeal of the decision on that claim to
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the Armed Services Board of Contract Appeals under
section 7 of such Act (41 U.S.C. 606); or
‘‘(3) any judgment rendered in the contractor’s
favor in an action on that claim in a court of the
United States.
‘‘(b) PERIOD OF AVAILABILITY.—(1) The period of
availability of an amount under subsection (a), in connec-
tion with a claim—
‘‘(A) expires 180 days after the expiration of the
period for bringing an action on that claim in the
United States Court of Federal Claims under section
10(a) of the Contract Disputes Act of 1978 (41 U.S.C.
609(a)) if, within that 180-day period—
‘‘(i) no appeal on the claim is commenced
at the Armed Services Board of Contract Appeals
under section 7 of the Contract Disputes Act of
1978; and
‘‘(ii) no action on the claim is commenced
in a court of the United States; or
‘‘(B) if not expiring under subparagraph (A), ex-
pires—
‘‘(i) in the case of a settlement of the claim,
180 days after the date of the settlement; or
‘‘(ii) in the case of a judgment rendered on
the claim in an appeal to the Armed Services
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Board of Contract Appeals under section 7 of the
Contract Disputes Act of 1978 or an action in
a court of the United States, 180 days after the
date on which the judgment becomes final and
not appealable.
‘‘(2) While available under this section, an amount
may be obligated or expended only for the purpose described
in subsection (a).
‘‘(3) Upon the expiration of the period of availability
of an amount under paragraph (1), the amount shall be
deposited in the Treasury as miscellaneous receipts.
‘‘(c) REPORTING
REQUIREMENT.—Each year, the
Under Secretary of Defense (Comptroller) shall submit to
Congress a report on the amounts, if any, that are available
for obligation pursuant to this section. The report shall in-
clude, at a minimum, the following:
‘‘(1) The total amount available for obligation.
‘‘(2) The total amount collected from contractors
during the year preceding the year in which the re-
port is submitted.
‘‘(3) The total amount disbursed in such preced-
ing year and a description of the purpose for each
disbursement.
‘‘(4) The total amount returned to the Treasury
in such preceding year.’’.
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(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 141 of title 10, United States Code,
is amended by adding at the end the following new item:
‘‘2410m. Retention of amounts collected from contractor during the pendency of
contract dispute.’’.
SEC. 832. PROTECTION OF CERTAIN INFORMATION FROM
DISCLOSURE.
Section 2371 of title 10, United States Code, is amend-
ed 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 De-
fense.
‘‘(2)(A) Paragraph (1) applies to information de-
scribed in subparagraph (B) that is 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 party
submitting the information, of a cooperative agreement that
includes a clause described in subsection (d) or another
transaction authorized under subsection (a).
‘‘(B) The information referred to in subparagraph (A)
is the following:
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‘‘(i) A proposal, proposal abstract, and support-
ing documents.
‘‘(ii) A business plan submitted on a confidential
basis.
‘‘(iii) Technical information submitted on a con-
fidential basis.’’.
SEC. 833. CONTENT OF LIMITED SELECTED ACQUISITION
REPORTS.
Section 2432(h)(2) of title 10, United States Code, is
amended—
(1) by striking out subparagraph (D); and
(2) by redesignating subparagraphs (E) and (F)
as subparagraphs (D) and (E), respectively.
SEC. 834. UNIT COST REPORTS.
(a) IMMEDIATE REPORT REQUIRED ONLY FOR PRE-
VIOUSLY UNREPORTED INCREASED COSTS.—Subsection (c)
of section 2433 of title 10, United States Code, is amended
by striking out ‘‘during the current fiscal year (other than
the last quarterly unit cost report under subsection (b) for
the preceding fiscal year)’’ in the matter following para-
graph (3).
(b) IMMEDIATE REPORT NOT REQUIRED FOR COST
VARIANCES OR SCHEDULE VARIANCES OF MAJOR CON-
TRACTS.—Subsection (c) of such section is further amend-
ed—
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(1) by inserting ‘‘or’’ at the end of paragraph
(1);
(2) by striking out ‘‘or’’ at the end of paragraph
(2); and
(3) by striking out paragraph (3).
(c) CONGRESSIONAL NOTIFICATION
OF INCREASED
COST NOT CONDITIONED ON DISCOVERY SINCE BEGINNING
OF FISCAL YEAR.—Subsection (d)(3) of such section is
amended by striking out ‘‘(for the first time since the begin-
ning of the current fiscal year)’’ in the first sentence.
SEC. 835. CENTRAL DEPARTMENT OF DEFENSE POINT OF
CONTACT FOR CONTRACTING INFORMATION.
(a) DESIGNATION OF OFFICIAL.—The Under Secretary
of Defense for Acquisition and Technology shall designate
an official within the Office of the Under Secretary of De-
fense for Acquisition and Technology to serve as a central
point of contact for persons seeking information described
in subsection (b).
(b) AVAILABLE INFORMATION.—Upon request, the offi-
cial designated under subsection (a) shall provide informa-
tion on the following:
(1) How and where to submit unsolicited propos-
als for research, development, test, and evaluation or
for furnishing property or services to the Department
of Defense.
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(2) Department of Defense solicitations for offers
that are open for response and the procedures for re-
sponding to the solicitations.
(3) Procedures for being included on any list of
approved suppliers used by the Department of De-
fense.
(c) AVAILABILITY OF INFORMATION.—The official des-
ignated under subsection (a) shall use a variety of means
for making the information described in subsection (b) read-
ily available to potential contractors for the Department of
Defense. The means shall include the establishment of one
or more toll-free automated telephone lines, posting of infor-
mation about the services of the official on generally acces-
sible computer communications networks, and advertising.
Subtitle E—Other Matters
SEC. 841. DEFENSE BUSINESS COMBINATIONS.
(a) EXTENSION OF REQUIREMENT FOR REPORTS ON
PAYMENT OF RESTRUCTURING COSTS.—Section 818(e) of
the National Defense Authorization Act for Fiscal Year
1995 (Public Law 103–337; 108 Stat. 1821; 10 U.S.C. 2324
note) is amended by striking out ‘‘1995, 1996, and 1997’’
and inserting in lieu thereof ‘‘1997, 1998, and 1999’’.
(b) SECRETARY OF DEFENSE REPORTS.—Not later
than March 1 in each of the years 1998, 1999, and 2000,
the Secretary of Defense shall submit to the congressional
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defense committees a report on effects on competition result-
ing from any business combinations of major defense con-
tractors that took place during the year preceding the year
of the report. The report shall include, for each business
combination reviewed by the Department pursuant to De-
partment of Defense Directive 5000.62, the following:
(1) An assessment of any potentially adverse ef-
fects that the business combination could have on
competition for Department of Defense contracts (in-
cluding potential horizontal effects, vertical effects,
and organizational conflicts of interest), the national
technology and industrial base, or innovation in the
defense industry.
(2) The actions taken to mitigate the potentially
adverse effects.
(c) GAO REPORTS.—(1) Not later than December 1,
1997, the Comptroller General shall—
(A) in consultation with appropriate officials in
the Department of Defense—
(i) identify major market areas adversely
affected by business combinations of defense con-
tractors since January 1, 1990; and
(ii) develop a methodology for determining
the beneficial impact of business combinations of
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defense contractors on the prices paid on par-
ticular defense contracts; and
(B) submit to the congressional defense commit-
tees a report describing, for each major market area
identified pursuant to subparagraph (A)(i), the
changes in numbers of businesses competing for major
defense contracts since January 1, 1990.
(2) Not later than December 1, 1998, the Comptroller
General shall submit to the congressional defense committees
a report containing the following:
(A) Updated information on—
(i) restructuring costs of business combina-
tions paid by the Department of Defense pursu-
ant to certifications under section 818 of the Na-
tional Defense Authorization Act for Fiscal Year
1995, and
(ii) savings realized by the Department of
Defense as a result of the business combinations
for which the payment of restructuring costs was
so certified.
(B) An assessment of the beneficial impact of
business combinations of defense contractors on the
prices paid on a meaningful sample of defense con-
tracts, determined in accordance with the methodol-
ogy developed pursuant to paragraph (1)(A)(ii).
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(C) Any recommendations that the Comptroller
General considers appropriate.
(d) BUSINESS COMBINATION DEFINED.—In this sec-
tion, the term ‘‘business combination’’ has the meaning
given that term in section 818(f) of the National Defense
Authorization Act for Fiscal Year 1995 (108 Stat. 2822;
10 U.S.C. 2324 note).
SEC. 842. LEASE OF NONEXCESS PROPERTY OF DEFENSE
AGENCIES.
(a) AUTHORITY.—Chapter 159 of title 10, United
States Code, is amended by inserting after section 2667 the
following:
‘‘§ 2667a. Leases: non-excess property of Defense Agen-
cies
‘‘(a) AUTHORITY.—Whenever the Director of a Defense
Agency considers it advantageous to the United States, he
may lease to such lessee and upon such terms as he considers
will promote the national defense or to be in the public in-
terest, personal property that is—
‘‘(1) under the control of the Defense Agency;
‘‘(2) not for the time needed for public use; and
‘‘(3) not excess property, as defined by section 3
of the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 472).
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‘‘(b) LIMITATION, TERMS, AND CONDITIONS.—A lease
under subsection (a)—
‘‘(1) may not be for more than five years unless
the Director of the Defense Agency concerned deter-
mines that a lease for a longer period will promote
the national defense or be in the public interest;
‘‘(2) may give the lessee the first right to buy the
property if the lease is revoked to allow the United
States to sell the property under any other provision
of law;
‘‘(3) shall permit the Director to revoke the lease
at any time, unless he determines that the omission
of such a provision will promote the national defense
or be in the public interest; and
‘‘(4) may provide, notwithstanding any other
provision of law, for the improvement, maintenance,
protection, repair, restoration, or replacement by the
lessee, of the property leased as the payment of part
or all of the consideration for the lease.
‘‘(c) DISPOSITION OF MONEY RENT.—Money rentals
received pursuant to leases entered into by the Director of
a Defense Agency under subsection (a) shall be deposited
in a special account in the Treasury established for such
Defense Agency. Amounts in a Defense Agency’s special ac-
count shall be available, to the extent provided in appro-
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priations Acts, solely for the maintenance, repair, restora-
tion, or replacement of the leased property.’’.
(b) CONFORMING AMENDMENT.—The heading of sec-
tion 2667 of such title is amended to read as follows:
‘‘§ 2667. Leases: non-excess property of military de-
partments’’.
(c) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 159 of such title is amended by
striking out the item relating to section 2667 and inserting
in lieu thereof the following:
‘‘2667. Leases: non-excess property of military departments.
‘‘2667a. Leases: non-excess property of Defense Agencies.’’.
SEC. 843. PROMOTION RATE FOR OFFICERS IN AN ACQUISI-
TION CORPS.
(a) REVIEW OF ACQUISITION CORPS PROMOTION SE-
LECTIONS.—Upon the approval of the President or his des-
ignee of the report of a selection board convened under sec-
tion 611(a) of title 10, United States Code, which consid-
ered members of an Acquisition Corps of a military depart-
ment for promotion to a grade above O–4, the Secretary
of the military department shall submit a copy of the report
to the Under Secretary of Defense for Acquisition and Tech-
nology for review.
(b) REPORTING REQUIREMENT.—Not later than Janu-
ary 31 of each year, the Under Secretary of Defense for Ac-
quisition and Technology shall submit to the Committee on
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Armed Services of the Senate and the Committee on Na-
tional Security of the House of Representatives a report
containing the Under Secretary’s assessment of the extent
to which each military department is complying with the
requirement set forth in section 1731(b) of title 10, United
States Code.
(c) TERMINATION OF REQUIREMENTS.—This section
shall cease to be effective on October 1, 2000.
SEC. 844. USE OF ELECTRONIC COMMERCE IN FEDERAL
PROCUREMENT.
(a) POLICY.—Section 30 of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 426) is amended to read
as follows:
‘‘SEC. 30. USE OF ELECTRONIC COMMERCE IN FEDERAL
PROCUREMENT.
‘‘(a) IN GENERAL.—The head of each executive agency,
after consulting with the Administrator, shall establish,
maintain, and use, to the maximum extent that is prac-
ticable and cost-effective, procedures and processes that em-
ploy electronic commerce in the conduct and administration
of its procurement system.
‘‘(b) APPLICABLE STANDARDS.—In conducting elec-
tronic commerce, the head of an agency shall apply nation-
ally and internationally recognized standards that broaden
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interoperability and ease the electronic interchange of infor-
mation.
‘‘(c) AGENCY PROCEDURES.—The head of each execu-
tive agency shall ensure that systems, technologies, proce-
dures, and processes established pursuant to this section—
‘‘(1) are implemented with uniformity through-
out the agency, to the extent practicable;
‘‘(2) facilitate access to Federal Government pro-
curement opportunities, including opportunities for
small business concerns, socially and economically
disadvantaged small business concerns, and business
concerns owned predominantly by women; and
‘‘(3) ensure that any notice of agency require-
ments or agency solicitation for contract opportuni-
ties is provided in a form that allows convenient and
universal user access through a single, government-
wide point of entry.
‘‘(d) IMPLEMENTATION.—The Administrator shall, in
carrying out the requirements of this section—
‘‘(1) issue policies to promote, to the maximum
extent practicable, uniform implementation of this
section by executive agencies, with due regard for dif-
ferences in program requirements among agencies
that may require departures from uniform procedures
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and processes in appropriate cases, when warranted
because of the agency mission;
‘‘(2) ensure that the head of each executive agen-
cy complies with the requirements of subsection (c)
with respect to the agency systems, technologies, pro-
cedures, and processes established pursuant to this
section; and
‘‘(3) consult with the heads of appropriate Fed-
eral agencies with applicable technical and functional
expertise, including the Office of Information and
Regulatory Affairs, the National Institute of Stand-
ards and Technology, the General Services Adminis-
tration, and the Department of Defense.
‘‘(e) ELECTRONIC COMMERCE DEFINED.—For the pur-
poses of this section, the term ‘electronic commerce’ means
electronic techniques for accomplishing business trans-
actions, including electronic mail or messaging, World
Wide Web technology, electronic bulletin boards, purchase
cards, electronic funds transfers, and electronic data inter-
change.’’.
(b) REPEAL OF REQUIREMENTS FOR IMPLEMENTATION
OF FACNET CAPABILITY.—Section 30A of the Office of
Federal Procurement Policy Act (41 U.S.C. 426a) is re-
pealed.
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(c) REPEAL OF REQUIREMENT FOR GAO REPORT.—
Section 9004 of the Federal Acquisition Streamlining Act
of 1994 (41 U.S.C. 426a note) is repealed.
(d) REPEAL OF CONDITION FOR USE OF SIMPLIFIED
ACQUISITION PROCEDURES.—Section 31 of the Office of
Federal Procurement Policy Act (41 U.S.C. 427) is amend-
ed—
(1) by striking out subsection (e); and
(2) by redesignating subsections (f) and (g) as
subsections (e) and (f), respectively.
(e) AMENDMENTS
TO PROCUREMENT NOTICE RE-
QUIREMENTS.—(1) Section 8(g)(1) of the Small Business
Act (15 U.S.C. 637(g)(1)) is amended—
(A) by striking out subparagraphs (A) and (B);
(B) by redesignating subparagraphs (C), (D),
(E), (F), (G), and (H) as subparagraphs (B), (C),
(D), (E), (F), and (G), respectively; and
(C) by inserting before subparagraph (B), as so
redesignated, the following new subparagraph (A):
‘‘(A) the proposed procurement is for an amount
not greater than the simplified acquisition threshold
and is to be conducted by—
‘‘(i) using widespread electronic public no-
tice of the solicitation in a form that allows con-
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venient and universal user access through a sin-
gle, governmentwide point of entry; and
‘‘(ii) permitting the public to respond to the
solicitation electronically.’’.
(2) Section 18(c)(1) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 416(c)(1)) is amended—
(A) by striking out subparagraphs (A) and (B);
(B) by redesignating subparagraphs (C), (D),
(E), (F), (G), and (H) as subparagraphs (B), (C),
(D), (E), (F), and (G), respectively; and
(C) by inserting before subparagraph (B), as so
redesignated, the following new subparagraph (A):
‘‘(A) the proposed procurement is for an amount
not greater than the simplified acquisition threshold
and is to be conducted by—
‘‘(i) using widespread electronic public no-
tice of the solicitation in a form that allows con-
venient and universal user access through a sin-
gle, governmentwide point of entry; and
‘‘(ii) permitting the public to respond to the
solicitation electronically.’’.
(3) The amendments made by paragraphs (1) and (2)
shall be implemented in a manner consistent with any ap-
plicable international agreements.
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(f) CONFORMING AND TECHNICAL AMENDMENTS.—(1)
Section 5061 of the Federal Acquisition Streamlining Act
of 1994 (41 U.S.C. 413 note) is amended—
(A) in subsection (c)(4)—
(i) by striking out ‘‘the Federal acquisition
computer network (‘FACNET’)’’ and inserting in
lieu thereof ‘‘the electronic commerce’’; and
(ii) by striking out ‘‘(as added by section
9001)’’; and
(B) in subsection (e)(9)(A), by striking out ‘‘, or
by dissemination through FACNET,’’.
(2) Section 5401 of the Clinger-Cohen Act of 1996 (di-
visions D and E of Public Law 104–106; 40 U.S.C. 1501)
is amended—
(A) in subsection (a)—
(i) by striking out ‘‘through the Federal Ac-
quisition Computer Network (in this section re-
ferred to as ‘FACNET’)’’; and
(ii) by striking out the last sentence;
(B) in subsection (b)—
(i) by striking out ‘‘ADDITIONAL FACNET
FUNCTIONS.—’’ and all that follows through ‘‘(41
U.S.C. 426(b)), the FACNET architecture’’ and
inserting in lieu thereof ‘‘FUNCTIONS.—(1) The
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system for providing on-line computer access’’;
and
(ii) in paragraph (2), by striking out ‘‘The
FACNET architecture’’ and inserting in lieu
there for ‘‘The system for providing on-line com-
puter access’’;
(C) in subsection (c)(1), by striking out ‘‘the
FACNET architecture’’ and inserting in lieu thereof
‘‘the system for providing on-line computer access’’;
and
(D) by striking out subsection (d).
(3)(A) Section 2302c of title 10, United States Code,
is amended to read as follows:
‘‘§ 2302c. Implementation of electronic commerce ca-
pability
‘‘(a) IMPLEMENTATION OF ELECTRONIC COMMERCE
CAPABILITY.—(1) The head of each agency named in para-
graphs (1), (5) and (6) shall implement the electronic com-
merce capability required by section 30 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 426).
‘‘(2) The Secretary of Defense shall act through the
Under Secretary of Defense for Acquisition and Technology
to implement the capability within the Department of De-
fense.
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‘‘(3) In implementing the electronic commerce capabil-
ity pursuant to paragraph (1), the head of an agency re-
ferred to in paragraph (1) shall consult with the Adminis-
trator for Federal Procurement Policy.
‘‘(b) DESIGNATION OF AGENCY OFFICIAL.—The head
of each agency named in paragraph (5) or (6) of section
2303 of this title shall designate a program manager to im-
plement the electronic commerce capability for that agency.
The program manager shall report directly to an official
at a level not lower than the senior procurement executive
designated for the agency under section 16(3) of the Office
of Federal Procurement Policy Act (41 U.S.C. 414(3)).’’.
(B) Section 2304(g)(4) of such title 10 is amended by
striking out ‘‘31(g)’’ and inserting in lieu thereof ‘‘31(f)’’.
(4)(A) Section 302C of the Federal Property and Ad-
ministrative Services Act of 1949 (41 U.S.C. 252c) is
amended to read as follows:
‘‘SEC. 302C. IMPLEMENTATION OF ELECTRONIC COMMERCE
CAPABILITY.
‘‘(a) IMPLEMENTATION OF ELECTRONIC COMMERCE
CAPABILITY.—(1) The head of each executive agency shall
implement the electronic commerce capability required by
section 30 of the Office of Federal Procurement Policy Act
(41 U.S.C. 426).
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‘‘(2) In implementing the electronic commerce capabil-
ity pursuant to paragraph (1), the head of an executive
agency shall consult with the Administrator for Federal
Procurement Policy.
‘‘(b) DESIGNATION OF AGENCY OFFICIAL.—The head
of each executive agency shall designate a program manager
to implement the electronic commerce capability for that
agency. The program manager shall report directly to an
official at a level not lower than the senior procurement
executive designated for the executive agency under section
16(3) of the Office of Federal Procurement Policy Act (41
U.S.C. 414(3)).’’.
(B) Section 303(g)(5) of the Federal Property and Ad-
ministrative Services Act (41 U.S.C. 253(g)(5)) is amended
by striking out ‘‘31(g)’’ and inserting in lieu thereof
‘‘31(f)’’.
(h) EFFECTIVE DATE.—(1) Except as provided in
paragraph (2), the amendments made by this section shall
take effect 180 days after the date of the enactment of this
Act.
(2) The repeal made by subsection (c) of this section
shall take effect on the date of the enactment of this Act.
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SEC. 845. CONFORMANCE OF POLICY ON PERFORMANCE
BASED MANAGEMENT OF CIVILIAN ACQUISI-
TION PROGRAMS WITH POLICY ESTABLISHED
FOR DEFENSE ACQUISITION PROGRAMS.
(a) PERFORMANCE GOALS.—Section 313(a) of the Fed-
eral Property and Administrative Services Act of 1949 (41
U.S.C. 263(a)) is amended to read as follows:
‘‘(a) CONGRESSIONAL POLICY.—It is the policy of Con-
gress that the head of each executive agency should achieve,
on average, 90 percent of the cost, performance, and sched-
ule goals established for major acquisition programs of the
agency.’’.
(b) CONFORMING AMENDMENT
TO REPORTING RE-
QUIREMENT.—Section 6(k) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 405(k)) is amended by inserting
‘‘regarding major acquisitions that is’’ in the first sentence
after ‘‘policy’’.
SEC. 846. MODIFICATION OF PROCESS REQUIREMENTS FOR
THE SOLUTIONS-BASED CONTACTING PILOT
PROGRAM.
(a) SOURCE SELECTION.—Paragraph (9) of section
5312(c) of the Clinger-Cohen Act of 1996 (divisions D and
E of Public Law 104–106; 40 U.S.C. 1492(c)) is amended—
(1) in subparagraph (A), by striking out ‘‘, and
ranking of alternative sources,’’ and inserting in lieu
thereof ‘‘or sources,’’;
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(2) in subparagraph (B)—
(A) in the matter preceding clause (i), by
inserting ‘‘(or a longer period, if approved by the
Administrator)’’ after ‘‘30 to 60 days’’;
(B) in clause (i), by inserting ‘‘or sources’’
after ‘‘source’’; and
(C) in clause (ii), by striking out ‘‘that
source’’ and inserting in lieu thereof ‘‘the source
whose offer is determined to be most advan-
tageous to the Government’’; and
(3) in subparagraph (C), by striking out ‘‘with
alternative sources (in the order ranked)’’.
(b) TIME MANAGEMENT DISCIPLINE.—Paragraph (12)
of such section is amended by inserting before the period
at the end the following: ‘‘, except that the Administrator
may approve the application of a longer standard period’’.
SEC. 847. TWO-YEAR EXTENSION OF APPLICABILITY OF FUL-
FILLMENT STANDARDS FOR DEFENSE ACQUI-
SITION 
WORKFORCE 
TRAINING 
REQUIRE-
MENTS.
Section 812(c)(2) of the National Defense Authoriza-
tion Act for Fiscal Year 1993 (Public Law 102–484; 106
Stat. 2451; 10 U.S.C. 1723 note) is amended by striking
out ‘‘October 1, 1997’’ and inserting in lieu thereof ‘‘October
1, 1999’’.
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SEC. 848. DEPARTMENT OF DEFENSE AND FEDERAL PRISON
INDUSTRIES JOINT STUDY.
(a) STUDY
OF
EXISTING
PROCUREMENT
PROCE-
DURES.—The Department of Defense and Federal Prison
Industries shall conduct jointly a study of existing procure-
ment procedures, regulations, and statutes which now gov-
ern procurement transactions between the Department of
Defense and Federal Prison Industries.
(b) FINDINGS.—A report describing the findings of the
study and containing recommendations on the means to im-
prove the efficiency and reduce the cost of such transactions
shall be submitted to the United States Senate Committees
on Armed Services and the Judiciary no later than 180
days after the date of enactment of this Act.
TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND
MANAGEMENT
SEC. 901. PRINCIPAL DUTY OF ASSISTANT SECRETARY OF
DEFENSE FOR SPECIAL OPERATIONS AND
LOW INTENSITY CONFLICT.
Section 138(b)(4) of title 10, United States Code, is
amended by striking out ‘‘of special operations activities
(as defined in section 167(j) of this title) and’’ and insert-
ing in lieu thereof ‘‘of the performance of the responsibilities
of the commander of the special operations command under
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subsections (e)(4) and (f) of section 167 of this title and
of’’.
SEC. 902. PROFESSIONAL MILITARY EDUCATION SCHOOLS.
(a) COMPONENT INSTITUTIONS OF THE NATIONAL DE-
FENSE UNIVERSITY.—(1) Chapter 108 of title 10, United
States Code, is amended by adding at the end the following:
‘‘§ 2165. National Defense University
‘‘(a) IN GENERAL.—There is a National Defense Uni-
versity in the Department of Defense.
‘‘(b) COMPONENT INSTITUTIONS.—The university in-
cludes the following institutions:
‘‘(1) The National War College.
‘‘(2) The Industrial College of the Armed Forces.
‘‘(3) The Armed Forces Staff College.
‘‘(4) The Institute for National Strategic Stud-
ies.
‘‘(5) The Information Resources Management
College.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following:
‘‘2165. National Defense University.’’.
(b) MARINE CORPS UNIVERSITY AS PROFESSIONAL
MILITARY EDUCATION SCHOOL.—Subsection (d) of section
2162 of such title is amended to read as follows:
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‘‘(d) 
PROFESSIONAL
MILITARY
EDUCATION
SCHOOLS.—This section applies to the following profes-
sional military education schools:
‘‘(1) The National Defense University.
‘‘(2) The Army War College.
‘‘(3) The College of Naval Warfare.
‘‘(4) The Air War College.
‘‘(5) The United States Army Command and
General Staff College.
‘‘(6) The College of Naval Command and Staff.
‘‘(7) The Air Command and Staff College.
‘‘(8) The Marine Corps University.’’.
(c) REPEAL OF DUPLICATIVE DEFINITION.—Section
1595(d) of title 10, United States Code, is amended—
(1) in paragraph (1), by striking out ‘‘(1)’’; and
(2) by striking out paragraph (2).
SEC. 903. USE OF CINC INITIATIVE FUND FOR FORCE PRO-
TECTION.
Section 166a(b) of title 10, United States Code, is
amended by adding at the end the following:
‘‘(9) Force protection.’’.
SEC. 904. TRANSFER OF TIARA PROGRAMS.
(a) TRANSFER OF FUNCTIONS.—The Secretary of De-
fense shall transfer—
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(1) the responsibilities of the Tactical Intel-
ligence and Related Activities (TIARA) aggregation
for the conduct of programs referred to in subsection
(b) to officials of elements of the military departments
not in the intelligence community; and
(2) the funds available within the Tactical Intel-
ligence and Related Activities aggregation for such
programs to accounts of the military departments
that are available for non-intelligence programs of the
military departments.
(b) COVERED PROGRAMS.—Subsection (a) applies to
the following programs:
(1) Targeting or target acquisition programs, in-
cluding the Joint Surveillance and Target Attack
Radar System, and the Advanced Deployable System.
(2) Tactical Warning and Attack Assessment
programs, including the Defense Support Program,
the Space-Based Infrared Program, and early warn-
ing radars.
(3) Tactical communications systems, including
the Joint Tactical Terminal.
(c) INTELLIGENCE COMMUNITY DEFINED.—In this sec-
tion, the term ‘‘intelligence community’’ has the meaning
given the term in section 3 of the National Security Act
of 1947 (50 U.S.C. 401a).
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SEC. 905. SENIOR REPRESENTATIVE OF THE NATIONAL
GUARD BUREAU.
(a) ESTABLISHMENT.—(1) Chapter 1011 of title 10,
United States Code, is amended by adding at the end the
following:
‘‘§ 10509. Senior Representative of the National Guard
Bureau
‘‘(a) APPOINTMENT.—There is a Senior Representative
of the National Guard Bureau who is appointed by the
President, by and with the advice and consent of the Senate.
Subject to subsection (b), the appointment shall be made
from officers of the Army National Guard of the United
States or the Air National Guard of the United States
who—
‘‘(1) are recommended for such appointment by
their respective Governors or, in the case of the Dis-
trict of Columbia, the commanding general of the Dis-
trict of Columbia National Guard; and
‘‘(2) meet the same eligibility requirements that
are set forth for the Chief of the National Guard Bu-
reau in paragraphs (2) and (3) of section 10502(a)
of this title.
‘‘(b) ROTATION OF OFFICE.—An officer of the Army
National Guard may be succeeded as Senior Representative
of the National Guard Bureau only by an officer of the Air
National Guard, and an officer of the Air National Guard
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may be succeeded as Senior Representative of the National
Guard Bureau only by an officer of the Army National
Guard. An officer may not be reappointed to a consecutive
term as Senior Representative of the National Guard Bu-
reau.
‘‘(c) TERM OF OFFICE.—An officer appointed as Sen-
ior Representative of the National Guard Bureau serves at
the pleasure of the President for a term of four years. An
officer may not hold that office after becoming 64 years of
age. While holding the office, the Senior Representative of
the National Guard Bureau may not be removed from the
reserve active-status list, or from an active status, under
any provision of law that otherwise would require such re-
moval due to completion of a specified number of years of
service or a specified number of years of service in grade.
‘‘(d) GRADE.—The Senior Representative of the Na-
tional Guard Bureau shall be appointed to serve in the
grade of general.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following:
‘‘10509. Senior Representative of the National Guard Bureau.’’.
(b) MEMBER OF JOINT CHIEFS OF STAFF.—Section
151(a) of title 10, United States Code, is amended by add-
ing at the end the following:
‘‘(7) The Senior Representative of the National
Guard Bureau.’’.
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(c) ADJUSTMENT OF RESPONSIBILITIES OF CHIEF OF
THE NATIONAL GUARD BUREAU.—(1) Section 10502 of title
10, United States Code, is amended by inserting ‘‘, and to
the Senior Representative of the National Guard Bureau,’’
after ‘‘Chief of Staff of the Air Force,’’.
(2) Section 10504(a) of such title is amended in the
second sentence by inserting ‘‘, and in consultation with
the Senior Representative of the National Guard Bureau,’’
after ‘‘Secretary of the Air Force’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall take effect on January 1, 1998.
SEC. 906. CENTER FOR HEMISPHERIC DEFENSE STUDIES.
(a) INSTITUTION OF THE NATIONAL DEFENSE UNI-
VERSITY.—Subsection (a) of section 2165 of title 10, United
States Code, as added by section 902, is amended by adding
at the end the following:
‘‘(6) The Center for Hemispheric Defense Stud-
ies.’’.
(b) CIVILIAN FACULTY MEMBERS.—Section 1595 of
title 10, United States Code, is amended by adding at the
end the following:
‘‘(g) APPLICATION TO DIRECTOR AND DEPUTY DIREC-
TOR AT CENTER FOR HEMISPHERIC DEFENSE STUDIES.—
In the case of the Center for Hemispheric Defense Studies,
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this section also applies with respect to the Director and
the Deputy Director.’’.
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
1998 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 Sec-
retary of Defense may transfer under the authority of this
section may not exceed $2,500,000,000.
(b) LIMITATIONS.—The authority provided by this sec-
tion 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.