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(B) by inserting ‘‘, or that person’s in-
surer,’’ after ‘‘from said third person’’;
(2) in subsection (d), as redesignated by sub-
section (a)(2)—
(A) by striking out ‘‘such right,’’ and in-
serting in lieu thereof ‘‘a right under subsections
(a), (b), and (c)’’; and
(B) by inserting ‘‘, or the insurance carrier
or other entity responsible for the payment or re-
imbursement of medical expenses or lost pay,’’
after ‘‘the third person who is liable for the in-
jury or disease’’ each place that it appears.
(c) APPLICABILITY.—The authority to collect pursuant
to the amendments made by this section shall apply to ex-
penses described in the first section of Public Law 87–693
(as amended by this section) that are incurred, or are to
be incurred, by the United States on or after the date of
the enactment of this Act, whether the event from which the
claim arises occurred before, on, or after that date.
SEC. 1067. DISPLAY OF STATE FLAGS AT INSTALLATIONS
AND FACILITIES OF THE DEPARTMENT OF DE-
FENSE.
(a) IN GENERAL.—Except as provided in subsection
(b) and notwithstanding any other provision of law, no
funds appropriated or otherwise made available to the De-
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partment of Defense may be used to adopt or enforce any
rule or other prohibition that discriminates against the dis-
play of the official flag of a particular State, territory, or
possession of the United States at an official ceremony at
any installation or other facility of the Department of De-
fense at which the official flags of the other States, terri-
tories, or possessions of the United States are being dis-
played.
(b) POSITION AND MANNER OF DISPLAY.—The display
of an official flag referred to in subsection (a) at an instal-
lation or other facility of the Department shall be governed
by the provisions of section 3 of the Joint Resolution of June
22, 1942 (56 Stat. 378, chapter 435; 36 U.S.C. 175), and
any modification of such provisions under section 8 of that
Joint Resolution (36 U.S.C. 178).
SEC. 1068. GEORGE C. MARSHALL EUROPEAN CENTER FOR
STRATEGIC SECURITY STUDIES.
(a) AUTHORITY TO ACCEPT FUNDS, MATERIALS, AND
SERVICES.—(1) The Secretary of Defense may, on behalf
of the George C. Marshall European Center for Strategic
Security Studies, accept gifts or donations of funds, mate-
rials (including research materials), property, and services
(including lecture services and faculty services) from foreign
governments, foundations and other charitable organiza-
tions in foreign countries, and individuals in foreign coun-
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tries in order to defray the costs of the operation of the Cen-
ter.
(2) Funds received by the Secretary under paragraph
(1) shall be credited to appropriations available for the De-
partment of Defense for the George C. Marshall European
Center for Strategic Security Studies. Funds so credited
shall be merged with the appropriations to which credited
and shall be available for the Center for the same purposes
and same period as the appropriations with which merged.
(b) PARTICIPATION OF FOREIGN NATIONS OTHERWISE
PROHIBITED.—(1) The Secretary may permit representa-
tives of a foreign government to participate in a program
of the George C. Marshall European Center for Strategic
Security Studies, notwithstanding any other provision of
law that would otherwise prevent representatives of that for-
eign government from participating in the program. Before
doing so, the Secretary shall determine, in consultation
with the Secretary of State, that the participation of rep-
resentatives of that foreign government in the program is
in the national interest of the United States.
(2) Not later than January 31 of each year, the Sec-
retary of Defense shall, with the assistance of the Director
of the Center, submit to Congress a report setting forth the
foreign governments permitted to participate in programs
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of the Center during the preceding year under the authority
provided in paragraph (1).
(c) WAIVER OF CERTAIN REQUIREMENTS FOR BOARD
OF VISITORS.—(1) The Secretary may waive the applica-
tion of any financial disclosure requirement imposed by law
to a foreign member of the Board of Visitors of the Center
if that requirement would otherwise apply to the member
solely by reason of the service as a member of the Board.
The authority under the preceding sentence applies only in
the case of a foreign member who serves on the Board with-
out compensation.
(2) Notwithstanding any other provision of law, a
member of the Board of Visitors may not be required to
register as an agent of a foreign government solely by reason
of service as a member of the Board.
SEC. 1069. AUTHORITY TO AWARD TO CIVILIAN PARTICI-
PANTS IN THE DEFENSE OF PEARL HARBOR
THE CONGRESSIONAL MEDAL PREVIOUSLY
AUTHORIZED ONLY FOR MILITARY PARTICI-
PANTS IN THE DEFENSE OF PEARL HARBOR.
(a) AUTHORITY.—The Speaker of the House of Rep-
resentatives and the President pro tempore of the Senate
are authorized jointly to present, on behalf of Congress, a
bronze medal provided for under section 1492 of the Na-
tional Defense Authorization Act for Fiscal Year 1991 (104
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Stat. 1721) to any person who meets the eligibility require-
ments set forth in subsection (d) of that section other than
the requirement for membership in the Armed Forces, as
certified under subsection (e) of that section or under sub-
section (b) of this section.
(b) CERTIFICATION.—The Secretary of Defense shall,
not later than 12 months after the date of the enactment
of this Act, certify to the Speaker of the House of Represent-
atives and the President pro tempore of the Senate the
names of persons who are eligible for award of the medal
under this Act and have not previously been certified under
section 1492(e) of the National Defense Authorization Act
for Fiscal Year 1991.
(c) APPLICATIONS.—Subsections (d)(2) and (f) of sec-
tion 1492 of the National Defense Authorization Act for Fis-
cal Year 1991 shall apply in the administration of this Act.
(d) ADDITIONAL STRIKING AUTHORITY.—The Sec-
retary of the Treasury shall strike such additional medals
as may be necessary for presentation under the authority
of subsection (a).
(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated such sum as may be nec-
essary to carry out this section.
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(f) RETROACTIVE EFFECTIVE DATE.—The authority
under subsection (a) shall be effective as of November 5,
1990.
SEC. 1070. MICHAEL O’CALLAGHAN FEDERAL HOSPITAL,
LAS VEGAS, NEVADA.
(a) FINDINGS.—Congress makes the following findings:
(1) Michael O’Callaghan, former Governor of the
State of Nevada, served in three branches of the
Armed Forces of the United States, namely, the
Army, the Air Force, and the Marine Corps.
(2) At 16 years of age, Michael O’Callaghan en-
listed in the United States Marine Corps to serve dur-
ing the end of World War II.
(3) 
During 
the 
Korean 
conflict, 
Michael
O’Callaghan served successively in the Air Force and
the Army and, during such service, suffered wounds
in combat that necessitated the amputation of his left
leg.
(4) Michael O’Callaghan was awarded the Silver
Star, the Bronze Star with Valor Device, and the
Purple Heart for his military service.
(5) In 1963, Michael O’Callaghan became the
first director of the Health and Welfare Department
of the State of Nevada.
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(6) In 1970, Michael O’Callaghan became Gov-
ernor of the State of Nevada and served in that posi-
tion through 1978, making him one of only five two-
term governors in the history of the State of Nevada.
(7) In 1982, Michael O’Callaghan received the
Air Force Exceptional Service Award.
(8) It is appropriate to name the Nellis Federal
Hospital, Las Vegas, Nevada, a hospital operated
jointly by the Department of Defense, through Nellis
Air Force Base, and the Department of Veterans Af-
fairs, through the Las Vegas Veterans Affairs Out-
patient Clinic, after Michael O’Callaghan, a man who
(A) has served his country with honor in three
branches of the Armed Forces, (B) as a disabled vet-
eran knows personally the tragic sacrifices that are so
often made in the service of his country in the Armed
Forces, and (C) has spent his entire career working
to improve the lives of all Nevadans.
(b) DESIGNATION OF MICHAEL O’CALLAGHAN FED-
ERAL HOSPITAL.—The Nellis Federal Hospital, a Federal
building located at 4700 North Las Vegas Boulevard, Las
Vegas, Nevada, is designated as the ‘‘Michael O’Callaghan
Federal Hospital’’.
(c) REFERENCES.—Any reference in a law, map, regu-
lation, document, paper, or other record of the United
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States to the Federal building referred to in subsection (b)
shall be deemed to be a reference to the ‘‘Michael
O’Callaghan Federal Hospital’’.
SEC. 1071. NAMING OF BUILDING AT THE UNIFORMED
SERVICES 
UNIVERSITY 
OF 
THE 
HEALTH
SCIENCES.
It is the sense of the Senate that the Secretary of De-
fense should name Building A at the Uniformed Services
University of the Health Sciences as the ‘‘David Packard
Building’’.
SEC. 1072. SENSE OF THE SENATE REGARDING THE UNITED
STATES–JAPAN 
SEMICONDUCTOR 
TRADE
AGREEMENT.
(a) FINDINGS.—The Senate makes the following find-
ings:
(1) The United States and Japan share a long
and important bilateral relationship which serves as
an anchor of peace and stability in the Asia Pacific
region, an alliance which was reaffirmed at the recent
summit meeting between President Clinton and
Prime Minister Hashimoto in Tokyo.
(2) The Japanese economy has experienced dif-
ficulty over the past few years, demonstrating that it
is no longer possible for Japan, the world’s second
largest economy, to use exports as the sole engine of
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economic growth, but that the Government of Japan
must promote deregulation of its domestic economy in
order to increase economic growth.
(3) Deregulation of the Japanese economy re-
quires government attention to the removal of barriers
to imports of manufactured goods.
(4) The United States-Japan Semiconductor
Trade Agreement has begun the process of deregula-
tion in the semiconductor sector and is opening the
Japanese market to competitive foreign products.
(5) The United States-Japan Semiconductor
Trade Agreement has put in place both government-
to-government and industry-to-industry mechanisms
which have played a vital role in allowing coopera-
tion to replace conflict in this important high tech-
nology sector.
(6) The mechanisms include joint calculation of
foreign market share, deterrence of dumping, and pro-
motion of industrial cooperation in the design of for-
eign semiconductor devices.
(7) Because of these actions under the United
States-Japan Semiconductor Trade Agreement, the
United States and Japan today enjoy trade in semi-
conductors which is mutually beneficial, harmonious,
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and free from the friction that once characterized the
semiconductor industry.
(8) Because of structural barriers in Japan, a
gap still remains between the share of the world mar-
ket for semiconductor products outside Japan that the
United States and other foreign semiconductor sources
are able to capture through competitiveness and the
share of the Japanese semiconductor market that the
United States and those other sources are able to cap-
ture through competitiveness, and that gap is consist-
ent across the full range of semiconductor products as
well as a full range of end-use applications.
(9) The competitiveness and health of the United
States semiconductor industry is of critical impor-
tance to the overall economic well-being and high
technology defense capabilities of the United States.
(10) The economic interests of both the United
States and Japan are best served by well functioning,
open markets, deterrence of dumping, and continuing
good cooperative relationships in all sectors, including
semiconductors.
(11) A strong and healthy and military and po-
litical alliance between the United States and Japan
requires continuation of the industrial and economic
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cooperation promoted by the United States-Japan
Semiconductor Trade Agreement.
(12) President Clinton has called on the Govern-
ment of Japan to agree to a continuation of a United
States-Japan Semiconductor Trade Agreement beyond
the current agreement’s expiration on July 31, 1996.
(13) The Government of Japan has opposed any
continuation of a government-to-government agree-
ment to promote cooperation in United States-Japan
semiconductor trade.
(b) SENSE OF SENATE.—It is the sense of the Senate
that—
(1) it is regrettable that the Government of
Japan has refused to consider continuation of a gov-
ernment-to-government agreement to ensure that co-
operation continues in the semiconductor sector be-
yond the expiration of the Semiconductor Trade
Agreement on July 31, 1996; and
(2) the President should take all necessary and
appropriate actions to ensure the continuation of a
government-to-government 
United 
States-Japan
Semiconductor Trade Agreement before the current
agreement expires on that date.
(c) DEFINITION.—As used in this section, the term
‘‘United States-Japan Semiconductor Trade Agreement’’
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refers to the agreement between the United States and
Japan concerning trade in semiconductor products, with
arrangement, done by exchange of letters at Washington on
June 11, 1991.
SEC. 1073. FOOD DONATION PILOT PROGRAM AT THE SERV-
ICE ACADEMIES.
(a) PROGRAM AUTHORIZED.—The Secretaries of the
military departments and the Secretary of Transportation
may each carry out a food donation pilot program at the
service academy under the jurisdiction of the Secretary.
(b) DONATIONS AND COLLECTIONS OF FOOD AND GRO-
CERY PRODUCTS.—Under the pilot program, the Secretary
concerned may donate to, and permit others to collect for,
a nonprofit organization any food or grocery product
that—
(1) is—
(A) an apparently wholesome food;
(B) an apparently fit grocery product; or
(C) a food or grocery product that is do-
nated in accordance with section 402(e) of the
National and Community Service Act of 1990
(42 U.S.C. 12672(e));
(2) is owned by the United States;
(3) is located at a service academy under the ju-
risdiction of the Secretary; and
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(C) The Secretary of the Air Force, with re-
spect to the United States Air Force Academy.
(D) The Secretary of Transportation, with
respect to the United States Coast Guard Acad-
emy.
(3) The terms ‘‘apparently fit grocery product’’,
‘‘apparently wholesome food’’, ‘‘donate’’, ‘‘food’’, and
‘‘grocery product’’ have the meanings given those
terms in section 402(b) of the National and Commu-
nity Service Act of 1990 (42 U.S.C. 12672(b)).
SEC. 1074. DESIGNATION OF MEMORIAL AS NATIONAL D–
DAY MEMORIAL.
(a) DESIGNATION.—The memorial to be constructed by
the National D–Day Memorial Foundation in Bedford, Vir-
ginia, is hereby designated as a national memorial to be
known as the ‘‘National D–Day Memorial’’. The memorial
shall serve to honor the members of the Armed Forces of
the United States who served in the invasion of Normandy,
France, in June 1944.
(b) PUBLIC PROCLAMATION.—The President is re-
quested and urged to issue a public proclamation acknowl-
edging the designation of the memorial to be constructed
by the National D–Day Memorial Foundation in Bedford,
Virginia, as the National D–Day Memorial.
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(c) MAINTENANCE OF MEMORIAL.—All expenses for
maintenance and care of the memorial shall be paid for
with non-Federal funds, including funds provided by the
National D–Day Memorial Foundation. The United States
shall not be liable for any expense incurred for the mainte-
nance and care of the memorial.
SEC. 1075. IMPROVEMENTS TO NATIONAL SECURITY EDU-
CATION PROGRAM.
(a) REPEAL OF TEMPORARY REQUIREMENT RELATING
TO EMPLOYMENT.—Title VII of the Department of Defense
Appropriations Act, 1996 (Public Law 104–61; 109 Stat.
650), is amended under the heading ‘‘NATIONAL SECURITY
EDUCATION TRUST FUND’’ by striking out the proviso.
(b) GENERAL PROGRAM REQUIREMENTS.—Subsection
(a)(1) of section 802 of the David L. Boren National Secu-
rity Education Act of 1991 (title VIII of Public Law 102–
183; 50 U.S.C. 1902) is amended—
(1) by striking out subparagraph (A) and insert-
ing in lieu thereof the following new subparagraph
(A):
‘‘(A) awarding scholarships to undergradu-
ate students who—
‘‘(i) are United States citizens in order
to enable such students to study, for at least
one academic semester or equivalent term,
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in foreign countries that are critical coun-
tries 
(as 
determined 
under 
section
803(d)(4)(A) of this title) in those languages
and study areas where deficiencies exist (as
identified in the assessments undertaken
pursuant to section 806(d) of this title); and
‘‘(ii) pursuant to subsection (b)(2)(A)
of this section, enter into an agreement to
work for, and make their language skills
available to, an agency or office of the Fed-
eral Government or work in the field of
higher education in the area of study for
which the scholarship was awarded;’’; and
(2) in subparagraph (B)—
(A) in clause (i), by inserting ‘‘relating to
the national security interests of the United
States’’ after ‘‘international fields’’; and
(B) in clause (ii)—
(i) by striking out ‘‘subsection (b)(2)’’
and inserting in lieu thereof ‘‘subsection
(b)(2)(B)’’; and
(ii) by striking out ‘‘work for an agen-
cy or office of the Federal Government or
in’’ and inserting in lieu thereof ‘‘work for,
and make their language skills available to,
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an agency or office of the Federal Govern-
ment or work in’’.
(c) SERVICE AGREEMENT.—Subsection (b) of that sec-
tion is amended—
(1) in the matter preceding paragraph (1), by
striking out ‘‘, or of scholarships’’ and all that follows
through ‘‘12 months or more,’’ and inserting in lieu
thereof ‘‘or any scholarship’’.
(2) by striking out paragraph (2) and inserting
in lieu thereof the following new paragraph (2):
‘‘(2) will—
‘‘(A) not later than eight years after such
recipient’s completion of the study for which
scholarship assistance was provided under the
program, and in accordance with regulations is-
sued by the Secretary—
‘‘(i) work in an agency or office of the
Federal Government having national secu-
rity responsibilities (as determined by the
Secretary in consultation with the National
Security Education Board) and make avail-
able such recipient’s foreign language skills
to an agency or office of the Federal Gov-
ernment approved by the Secretary (in con-
sultation with the Board), upon the request
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of the agency or office, for a period specified
by the Secretary, which period shall be no
longer than the period for which scholarship
assistance was provided; or
‘‘(ii) if the recipient demonstrates to
the Secretary (in accordance with such reg-
ulations) that no position in an agency or
office of the Federal Government having na-
tional security responsibilities is available,
work in the field of higher education in a
discipline relating to the foreign country,
foreign language, area study, or inter-
national field of study for which the schol-
arship was awarded, for a period specified
by the Secretary, which period shall be de-
termined in accordance with clause (i); or
‘‘(B) upon completion of such recipient’s
education under the program, and in accordance
with such regulations—
‘‘(i) work in an agency or office of the
Federal Government having national secu-
rity responsibilities (as so determined) and
make available such recipient’s foreign lan-
guage skills to an agency or office of the
Federal Government approved by the Sec-
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retary (in consultation with the Board),
upon the request of the agency or office, for
a period specified by the Secretary, which
period shall be not less than one and not
more than three times the period for which
the fellowship assistance was provided; or
‘‘(ii) if the recipient demonstrates to
the Secretary (in accordance with such reg-
ulations) that no position in an agency or
office of the Federal Government having na-
tional security responsibilities is available
upon the completion of the degree, work in
the field of higher education in a discipline
relating to the foreign country, foreign lan-
guage, area study, or international field of
study for which the fellowship was awarded,
for a period specified by the Secretary,
which period shall be established in accord-
ance with clause (i); and’’.
(d) EVALUATION
OF
PROGRESS
IN
LANGUAGE
SKILLS.—Such section 802 is further amended by—
(1) redesignating subsections (c), (d), and (e) as
subsections (d), (e), and (f), respectively; and
(2) by inserting after subsection (b) the following
new subsection (c):
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‘‘(c) EVALUATION
OF
PROGRESS
IN
LANGUAGE
SKILLS.—The Secretary shall, through the National Secu-
rity Education Program office, administer a test of the for-
eign language skills of each recipient of a scholarship or
fellowship under this title before the commencement of the
study or education for which the scholarship or fellowship
is awarded and after the completion of such study or edu-
cation. The purpose of the tests is to evaluate the progress
made by recipients of scholarships and fellowships in devel-
oping foreign language skills as a result of assistance under
this title.’’.
(e) FUNCTIONS OF THE NATIONAL SECURITY EDU-
CATION BOARD.—Section 803(d) of that Act (50 U.S.C.
1903(d)) is amended—
(1) in paragraph (1), by inserting ‘‘, including
an order of priority in such awards that favors indi-
viduals expressing an interest in national security is-
sues or pursuing a career in an agency or office of
the Federal Government having national security re-
sponsibilities’’ before the period;
(2) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by striking out ‘‘Make recommendations’’
and inserting in lieu thereof ‘‘After taking into
account the annual analyses of trends in lan-
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guage, international, and area studies under sec-
tion 806(b)(1), make recommendations’’;
(B) in subparagraph (A), by inserting ‘‘and
countries which are of importance to the na-
tional security interests of the United States’’
after ‘‘are studying’’; and
(C) in subparagraph (B), by inserting ‘‘re-
lating to the national security interests of the
United States’’ after ‘‘of this title’’;
(3) by redesignating paragraph (5) as para-
graph (7); and
(4) by inserting after paragraph (4) the follow-
ing new paragraphs:
‘‘(5) Encourage applications for fellowships
under this title from graduate students having an
educational background in disciplines relating to
science or technology.
‘‘(6) Provide the Secretary on an on-going basis
with a list of scholarship recipients and fellowship re-
cipients who are available to work for, or make their
language skills available to, an agency or office of the
Federal Government having national security respon-
sibilities.’’.
(f) REPORT ON PROGRAM.—(1) Not later than six
months after the date of the enactment of this Act, the Sec-
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retary of Defense shall submit to Congress a report assessing
the improvements to the program established under the
David L. Boren National Security Education Act of 1991
(title VIII of Public Law 102–183; 50 U.S.C. 1901 et seq.)
that result from the amendments made by this section.
(2) The report shall also include an assessment of the
contribution of the program, as so improved, in meeting
the national security objectives of the United States.
SEC. 1076. REIMBURSEMENT FOR EXCESSIVE COMPENSA-
TION OF CONTRACTOR PERSONNEL PROHIB-
ITED.
(a) 
ARMED
SERVICES
PROCUREMENTS.—Section
2324(e)(1) of title 10, United States Code, is amended by
adding at the end the following:
‘‘(P) Costs of compensation (including bo-
nuses and other incentives) paid with respect to
the services (including termination of services) of
any one individual to the extent that the total
amount of the compensation paid in a fiscal
year exceeds $200,000.’’.
(b) 
CIVILIAN
AGENCY
PROCUREMENTS.—Section
306(e)(1) of the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 256(e)(1)) is amended by add-
ing at the end the following:
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‘‘(P) Costs of compensation (including bo-
nuses and other incentives) paid with respect to
the services (including termination of services) of
any one individual to the extent that the total
amount of the compensation paid in a fiscal
year exceeds $200,000.’’.
SEC. 1077. SENSE OF THE SENATE ON DEPARTMENT OF DE-
FENSE SHARING OF EXPERIENCES UNDER
MILITARY YOUTH PROGRAMS.
(a) FINDINGS.—The Senate makes the following find-
ings:
(1) Programs of the Department of Defense for
youth who are dependents of members of the Armed
Forces have not received the same level of attention
and resources as have child care programs of the De-
partment since the passage of the Military Child Care
Act of 1989 (title XV of Public Law 101–189; 10
U.S.C. 113 note).
(2) Older children deserve as much attention to
their developmental needs as do younger children.
(3) The Department has started to direct more
attention to programs for youths who are dependents
of members of the Armed Forces by funding the imple-
mentation of 20 model community programs to ad-
dress the needs of such youths.
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(4) The lessons learned from such programs
could apply to civilian youth programs as well.
(b) SENSE OF SENATE.—It is the sense of the Senate
that—
(1) the Department of Defense, Federal, State,
and local agencies, and businesses and communities
involved in conducting youth programs could benefit
from the development of partnerships to foster an ex-
change of ideas, information, and materials relating
to such programs and to encourage closer relation-
ships between military installations and the commu-
nities that support them;
(2) such partnerships could benefit all families
by helping the providers of services for youths ex-
change ideas about innovative ways to address bar-
riers to the effective provision of such services; and
(3) there are many ways that such partnerships
could be developed, including—
(A) cooperation between the Department
and Federal and State educational agencies in
exploring the use of public school facilities for
child care programs and youth programs that
are mutually beneficial to the Department and
civilian communities and complement programs
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of the Department carried out at its facilities;
and
(B) improving youth programs that enable
adolescents to relate to new peer groups when
families of members of the Armed Forces are re-
located.
(c) REPORT.—Not later than June 30, 1997, the Sec-
retary of Defense shall submit to Congress a report on the
status of any initiatives undertaken this section, including
recommendations for additional ways to improve the youth
programs of the Department of Defense and to improve such
programs so as to benefit communities in the vicinity of
military installations.
SEC. 1078. SENSE OF THE SENATE ON DEPARTMENT OF DE-
FENSE SHARING OF EXPERIENCES WITH MILI-
TARY CHILD CARE.
(a) FINDINGS.—The Senate makes the following find-
ings:
(1) The Department of Defense should be con-
gratulated on the successful implementation of the
Military Child Care Act of 1989 (title XV of Public
Law 101–189; 10 U.S.C. 113 note).
(2) The actions taken by the Department as a re-
sult of that Act have dramatically improved the avail-
ability, affordability, quality, and consistency of the
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child care services provided to members of the Armed
Forces.
(3) Child care is important to the readiness of
members of the Armed Forces because single parents
and couples in military service must have access to
affordable child care of good quality if they are to
perform their jobs and respond effectively to long
work hours or deployments.
(4) Child care is important to the retention of
members of the Armed Forces in military service be-
cause the dissatisfaction of the families of such mem-
bers with military life is a primary reason for the de-
parture of such members from military service.
(b) SENSE OF SENATE.—It is the sense of the Senate
that—
(1) the civilian and military child care commu-
nities, Federal, State, and local agencies, and busi-
nesses and communities involved in the provision of
child care services could benefit from the development
of partnerships to foster an exchange of ideas, infor-
mation, and materials relating to their experiences
with the provision of such services and to encourage
closer relationships between military installations
and the communities that support them;
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(2) such partnerships would be beneficial to all
families by helping providers of child care services ex-
change ideas about innovative ways to address bar-
riers to the effective provision of such services; and
(3) there are many ways that these partnerships
can be developed, including—
(A) cooperation between the directors and
curriculum specialists of military child develop-
ment centers and civilian child development cen-
ters in assisting such centers in the accreditation
process;
(B) use of family support staff to conduct
parent and family workshops for new parents
and parents with young children in family hous-
ing on military installations and in commu-
nities in the vicinity of such installations;
(C) internships in Department of Defense
child care programs for civilian child care pro-
viders to broaden the base of good-quality child
care services in communities in the vicinity of
military installations; and
(D) attendance by civilian child care pro-
viders at Department child-care training classes
on a space-available basis.
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(c) REPORT.—Not later than June 30, 1997, the Sec-
retary of Defense shall submit to Congress a report on the
status of any initiatives undertaken this section, including
recommendations for additional ways to improve the child
care programs of the Department of Defense and to improve
such programs so as to benefit civilian child care providers
in communities in the vicinity of military installations.
SEC. 1079. INCREASE IN PENALTIES FOR CERTAIN TRAFFIC
OFFENSES ON MILITARY INSTALLATIONS.
Section 4 of the Act of June 1, 1948 (40 U.S.C. 318c)
is amended to read as follows:
‘‘SEC. 4. (a) Except as provided in subsection (b), who-
ever shall violate any rule or regulation promulgated pursu-
ant to section 2 of this Act may be fined not more than
$50 or imprisoned for not more than thirty days, or both.
‘‘(b) Whoever shall violate any rule or regulation for
the control of vehicular or pedestrian traffic on military
installations that is promulgated by the Secretary of De-
fense, or the designee of the Secretary, under the authority
delegated pursuant to section 2 of this Act may be fined
an amount not to exceed the amount of a fine for a like
or similar offense under the criminal or civil law of the
State, territory, possession, or district where the military
installation is located, or imprisoned for not more than
thirty days, or both.’’.
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SEC. 1080. PHARMACEUTICAL INDUSTRY SPECIAL EQUITY.
(a) SHORT TITLE.—This section may be cited as the
‘‘Pharmaceutical Industry Special Equity Act of 1996’’.
(b) APPROVAL OF GENERIC DRUGS.—
(1) IN GENERAL.—With respect to any patent,
the term of which is modified under section 154(c)(1)
of title 35, United States Code, as amended by the
Uruguay Round Agreements Act (Public Law 103–
465; 108 Stat. 4983), the remedies of section 271(e)(4)
of title 35, United States Code, shall not apply if—
(A) such patent is the subject of a certifi-
cation described under—
(i) 
section 
505 
(b)(2)(A)(iv) 
or
(j)(2)(A)(vii)(IV) of the Federal Food, Drug,
and 
Cosmetic 
Act 
(21 
U.S.C. 
355
(b)(2)(A)(iv) or (j)(2)(A)(vii)(IV)); or
(ii) section 512(n)(1)(H)(iv) of such
Act (21 U.S.C. 360b(n)(1)(H)(iv));
(B) on or after the date of enactment of this
section, such a certification is made in an appli-
cation that was filed under section 505 or 512
of the Federal Food, Drug, and Cosmetic Act and
accepted for filing by the Food and Drug Admin-
istration prior to June 8, 1995; and
(C) a final order, from which no appeal is
pending or may be made, has been entered in an
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action brought under chapter 28 or 29 of title
35, United States Code—
(i) finding that the person who submit-
ted such certification made a substantial in-
vestment of the type described under section
154(c)(2) of title 35, United States Code, as
amended by the Uruguay Round Agree-
ments Act; and
(ii) establishing the amount of equi-
table remuneration of the type described
under section 154(c)(3) of title 35, United
States Code, as amended by the Uruguay
Round Agreements Act, that is required to
be paid by the person who submitted such
certification to the patentee for the product
that is the subject of the certification.
(2) DETERMINATION
OF
SUBSTANTIAL
INVEST-
MENT.—In determining whether a substantial invest-
ment has been made in accordance with this section,
the court shall find that—
(A) a complete application submitted under
section 505 or 512 of the Federal Food, Drug,
and Cosmetic Act was found by the Secretary of
Health and Human Services on or before June
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8, 1995 to be sufficiently complete to permit sub-
stantive review; and
(B) the total sum of the investment made by
the person submitting such an application—
(i) is specifically related to the re-
search, development, manufacture, sale,
marketing, or other activities undertaken in
connection with, the product covered by
such an application; and
(ii) does not solely consist of that per-
son’s expenditures related to the develop-
ment and submission of the information
contained in such an application.
(3) EFFECTIVE DATE OF APPROVAL OF APPLICA-
TION.—In no event shall the Food and Drug Admin-
istration make the approval of an application under
sections 505 or 512 of the Federal Food, Drug, and
Cosmetic Act, which is subject to the provisions of this
section, effective prior to the entry of the order de-
scribed in paragraph (1)(C).
(4) APPLICABILITY.—The provisions of this sub-
section shall not apply to any patent the term of
which, inclusive of any restoration period provided
under section 156 of title 35, United States Code,
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would have expired on or after June 8, 1998, under
the law in effect on the date before December 8, 1994.
(c) APPLICATION OF CERTAIN BENEFITS AND TERM
EXTENSIONS TO ALL PATENTS IN FORCE ON A CERTAIN
DATE.—For the purposes of this section and the provisions
of title 35, United States Code, all patents in force on June
8, 1995, including those in force by reason of section 156
of title 35, United States Code, are entitled to the full bene-
fit of the Uruguay Round Agreements Act of 1994 and any
extension granted before such date under section 156 of title
35, United States Code.
(d) EXTENSION
OF PATENTS RELATING
TO NON-
STEROIDAL ANTI-INFLAMMATORY DRUGS.—
(1) IN GENERAL.—Notwithstanding section 154
of title 35, United States Code, the term of patent
shall be extended for any patent which encompasses
within its scope of composition of matter known as a
nonsteroidal anti-inflammatory drug if—
(A) during the regulatory review of the drug
by the Food and Drug Administration the pat-
entee—
(i) filed a new drug application in
1982 under section 505 of the Federal Food,
Drug and Cosmetic Act (21 U.S.C. 355);
and
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(ii) awaited approval by the Food and
Drug Administration for at least 96
months; and
(B) such new drug application was ap-
proved in 1991.
(2) TERM.—The term of any patent described in
paragraph (1) shall be extended from its current expi-
ration date for a period of 2 years.
(3) NOTIFICATION.—No later than 90 days after
the date of enactment of this section, the patentee of
any patent described in paragraph (1) shall notify
the Commissioner of Patents and Trademarks of the
number of any patent extended under such para-
graph. On receipt of such notice, the Commissioner
shall confirm such extension by placing a notice
thereof in the official file of such patent and publish-
ing an appropriate notice of such extension in the Of-
ficial Gazette of the Patent and Trademark Office.
(e) EXPEDITED PROCEDURES FOR CIVIL ACTIONS.—
(1) APPLICATION.—(A) This subsection applies
to any civil action in a court of the United States
brought to determine the rights of the parties under
this section, including any determination made under
subsection (b).
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(B) For purposes of this subsection the term
‘‘civil action’’ refers to a civil action described under
subparagraph (A).
(2) 
SUPERSEDING
PROVISIONS.—Procedures
adopted under this subsection shall supersede any
provision of title 28, United States Code, the Federal
Rules of Civil Procedure, or the Federal Rules of Ap-
pellate Procedure to the extent of any inconsistency.
(3) PROCEDURES IN DISTRICT COURT.—No later
than 60 days after the date of the enactment of this
Act, each district court of the United States shall
adopt procedures to—
(A) provide for priority in consideration of
civil actions on an expedited basis, including
consideration of determinations relating to sub-
stantial investment, equitable remuneration, and
equitable compensation;
(B) provide that—
(i) no later than 10 days after a party
files an answer to a complaint filed in a
civil action the court shall order that all
discovery (including a hearing on any dis-
covery motions) shall be completed no later
than 60 days after the date on which the
court enters the order; and
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(ii) the court may grant a single exten-
sion of the 60-day period referred to under
clause (i) for an additional period of no
more than 30 days upon a showing of good
cause;
(C) require any dispositive motion in a
civil action to be filed no later than 30 days
after completion of discovery;
(D) require that—
(i) if a dispositive motion is filed in a
civil action, the court shall rule on such a
motion no later than 30 days after the date
on which the motion is filed;
(ii) the court shall begin the trial of a
civil action no later than 60 days after the
later of—
(I) the date on which discovery is
completed in accordance with subpara-
graph (B); or
(II) the last day of the 30-day pe-
riod referred to under clause (i), if a
dispositive motion is filed;
(E) require that if a person does not hold
the patent which is the subject of a civil action
and is the prevailing party in the civil action,
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the court shall order the nonprevailing party to
pay damages to the prevailing party;
(F) the damages payable to such persons
shall include—
(i) the costs resulting from the delay
caused by the civil action; and
(ii) lost profits from such delay; and
(G) provide that the prevailing party in a
civil action shall be entitled to recover reasonable
attorney’s fees and court costs.
(4) PROCEDURES IN FEDERAL CIRCUIT COURT.—
No later than 60 days after the date of the enactment
of this Act, the United States Court of Appeals for the
Federal Circuit shall adopt procedures to provide for
expedited considerations of civil actions brought
under this Act.
SEC. 1081. CLARIFICATION OF NATIONAL SECURITY SYS-
TEMS TO WHICH THE INFORMATION TECH-
NOLOGY MANAGEMENT REFORM ACT OF 1996
APPLIES.
Section 5142(b) of the Information Technology Man-
agement Reform Act of 1996 (division E of Public Law
104–106; 110 Stat. 689; 40 U.S.C. 1452(b)) is amended—
(1) by striking out ‘‘(b) LIMITATION.—’’ and in-
serting in lieu thereof ‘‘(b) LIMITATIONS.—(1)’’; and
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(2) by adding at the end the following:
‘‘(2) Notwithstanding any other provision of this sec-
tion or any other provision of law, for the purposes of this
subtitle, a system that, in function, operation, or use, in-
volves the storage, processing, or forwarding of classified in-
formation and is protected at all times by procedures estab-
lished for the handling of classified information shall be
considered as a national security system under the defini-
tion in subsection (a) only if the function, operation, or
use of the system—
‘‘(A) involves activities described in paragraph
(1), (2), or (3) of subsection (a);
‘‘(B) involves equipment described in paragraph
(4) of subsection (a); or
‘‘(C) is critical to an objective described in para-
graph (5) of subsection (a) and is not excluded by
paragraph (1) of this subsection.’’.
SEC. 1082. SALE OF CHEMICALS USED TO MANUFACTURE
CONTROLLED SUBSTANCES BY FEDERAL DE-
PARTMENTS OR AGENCIES.
A Federal department or agency may not sell from the
stocks of the department or agency any chemical which, as
determined by the Administrator of the Drug Enforcement
Agency, could be used in the manufacture of a controlled
substance as defined in section 102 of the Controlled Sub-
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stances Act (21 U.S.C. 802) unless the Administrator cer-
tifies in writing to the head of the department or agency
that there is no reasonable cause to believe that the sale of
the chemical would result in the illegal manufacture of a
controlled substance.
SEC. 1083. OPERATIONAL SUPPORT AIRLIFT AIRCRAFT.
(a) STATUS OF EXCESS AIRCRAFT.—Operational sup-
port airlift aircraft excess to the requirements of the Depart-
ment of Defense shall be placed in an inactive status and
stored at Davis-Monthan Air Force Base, Arizona, pending
the completion of any study or analysis of the costs and
benefits of disposing of or operating such aircraft that pre-
cedes a decision to dispose of or continue to operate such
aircraft.
(b) OPERATIONAL SUPPORT AIRLIFT AIRCRAFT DE-
FINED.—In this section, the term ‘‘operational support air-
lift aircraft’’ has the meaning given such term in section
1086(f) of the National Defense Authorization Act for Fiscal
Year 1996 (Public Law 104–106; 110 Stat. 458).
SEC. 1084. SENSE OF SENATE REGARDING BOSNIA AND
HERZEGOVINA.
It is the sense of the Senate that, notwithstanding any
other provision of law, in order to maximize the amount
of equipment provided to the Government of Bosnia and
Herzegovina under the authority contained in section 540
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of the Foreign Operations Act of 1996 (Public Law 104–
107), the price of the transferred equipment shall not exceed
the lowest level at which the same or similar equipment has
been transferred to any other country under any other Unit-
ed States Government program.
SEC. 1085. STRENGTHENING CERTAIN SANCTIONS AGAINST
NUCLEAR PROLIFERATION ACTIVITIES.
(a) IN GENERAL.—Section 2(b)(4) of the Export-Im-
port Bank Act of 1945 (12 U.S.C. 635(b)(4)) is amended—
(1) by inserting after ‘‘any country has willfully
aided or abetted’’ the following: ‘‘, or any person has
knowingly aided or abetted,’’;
(2) by striking ‘‘or countries’’ and inserting ‘‘,
countries, person, or persons’’;
(3) by inserting after ‘‘United States exports to
such country’’ the following: ‘‘or, in the case of any
such person, give approval to guarantee, insure, or ex-
tend credit, or participate in the extension of credit
in support of, exports to or by any such person for
a 12-month period,’’;
(4) by inserting ‘‘(A)’’ immediately after ‘‘(4)’’;
(5) by inserting after ‘‘United States exports to
such country’’ the second place it appears the follow-
ing: ‘‘, except as provided in subparagraph (B),’’; and
(6) by adding at the end the following:
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‘‘(B) In the case of any country or person aiding or
abetting a non-nuclear-weapon state as described in sub-
paragraph (A), the prohibition on financing by the Bank
contained in the second sentence of that subparagraph shall
not apply to the country or person, as the case may be,
if the President determines and certifies in writing to the
Congress that—
‘‘(i) reliable information indicates that the coun-
try or person with respect to which the determination
is made has ceased to aid or abet any non-nuclear-
weapon state to acquire any nuclear explosive device
or to acquire unsafeguarded special nuclear material;
and
‘‘(ii) the President has received reliable assur-
ances from the country or person that such country
or person will not, in the future, aid or abet any non-
nuclear-weapon state in its efforts to acquire any nu-
clear explosive device or any unsafeguarded special
nuclear material.
‘‘(C) For purposes of subparagraphs (A) and (B)—
‘‘(i) the term ‘country’ has the meaning given to
‘foreign state’ in section 1603(a) of title 28, United
States Code;
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‘‘(ii) the term ‘knowingly’ is used within the
meaning of the term ‘knowing’ in section 104 of the
Foreign Corrupt Practices Act; and
‘‘(iii) the term ‘person’ means a natural person
as well as a corporation, business association, part-
nership, society, trust, any other nongovernmental en-
tity, organization, or group, and any governmental
entity operating as a business enterprise, and any
successor of any such entity.’’.
(b) EFFECTIVE DATE.—(1) The amendments made by
paragraphs (1) through (5) of subsection (a) shall apply
to persons, and the amendment made by subsection (a)(6),
shall apply to countries and persons, aiding or abetting
non-nuclear weapon states on or after June 29, 1994.
(2) Nothing in this section or the amendments made
by this section shall apply to obligations undertaken pursu-
ant to guarantees, insurance, and the extension of credits
(and participation in the extension of credits) made before
the date of enactment of this Act.
SEC. 1086. TECHNICAL AMENDMENT.
Paragraph (3) of section 8003(a) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7703(a))
is amended—
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(1) by striking ‘‘2000 and such number equals or
exceeds 15’’ and inserting ‘‘1000 or such number
equals or exceeds 10’’; and
(2) by inserting ‘‘, except that notwithstanding
any other provision of this title the Secretary shall
not make a payment computed under this paragraph
for a child described in subparagraph (F) or (G) of
paragraph (1) who is associated with Federal prop-
erty used for Department of Defense activities unless
funds for such payment are made available to the
Secretary from funds available to the Secretary of De-
fense’’ before the period.
SEC. 1087. FACILITY FOR MILITARY DEPENDENT CHILDREN
WITH DISABILITIES, LACKLAND AIR FORCE
BASE, TEXAS.
(a) FUNDING.—Of the amounts authorized to be ap-
propriated by this Act for the Department of the Air Force,
$2,000,000 may be available for the construction at
Lackland Air Force Base, Texas, of a facility (and support-
ing infrastructure) to provide comprehensive care and reha-
bilitation services to children with disabilities who are de-
pendents of members of the Armed Forces.
(b) TRANSFER OF FUNDS.—Subject to subsection (c),
the Secretary of the Air Force may grant the funds avail-
able under subsection (a) to the Children’s Association for
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Maximum Potential (CAMP) for use by the association to
defray the costs of designing and constructing the facility
referred to in subsection (a).
(c) LEASE OF FACILITY.—(1) The Secretary may not
make a grant of funds under subsection (b) until the Sec-
retary and the association enter into an agreement under
which the Secretary leases to the association the facility to
be constructed using the funds.
(2)(A) The term of the lease under paragraph (1) may
not be less than 25 years.
(B) As consideration for the lease of the facility, the
association shall assume responsibility for the operation
and maintenance of the facility, including the costs of such
operation and maintenance.
(3) The Secretary may require such additional terms
and conditions in connection with the lease as the Secretary
considers appropriate to protect the interests of the United
States.
SEC. 1088. PROHIBITION ON THE DISTRIBUTION OF INFOR-
MATION RELATING TO EXPLOSIVE MATE-
RIALS FOR A CRIMINAL PURPOSE.
(a) UNLAWFUL CONDUCT.—Section 842 of title 18,
United States Code, is amended by adding at the end the
following new subsection:
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‘‘(l) It shall be unlawful for any person to teach or
demonstrate the making of explosive materials, or to distrib-
ute by any means information pertaining to, in whole or
in part, the manufacture of explosive materials, if the per-
son intends or knows, that such explosive materials or infor-
mation will be used for, or in furtherance of, an activity
that constitutes a Federal criminal offense or a criminal
purpose affecting interstate commerce.’’.
(b) PENALTY.—Section 844(a) of title 18, United
States Code, is amended—
(1) by striking ‘‘(a) Any person’’ and inserting
‘‘(a)(1) Any person’’; and
(2) by adding at the end the following:
‘‘(2) Any person who violates subsection (l) of section
842 of this chapter shall be fined under this title, impris-
oned not more than 20 years, or both.’’.
SEC. 1089. EXEMPTION FOR SAVINGS INSTITUTIONS SERV-
ING MILITARY PERSONNEL.
Section 10(m)(3)(F) of the Home Owners’ Loan Act
(12 U.S.C. 1467a(m)(3)(F)) is amended to read as follows:
‘‘(F) EXEMPTION
FOR
SPECIALIZED
SAV-
INGS ASSOCIATIONS SERVING CERTAIN MILITARY
PERSONNEL.—Subparagraph (A) does not apply
to a savings association subsidiary of a savings
and loan holding company if not less than 90
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percent of the customers of the savings and loan
holding company and the subsidiaries and affili-
ates of such company are active or former offi-
cers in the United States military services or the
widows, widowers, divorced spouses, or current
or former dependents of such officers.’’.
Subtitle G—Review of Armed Forces
Force Structures
SEC. 1091. SHORT TITLE.
This subtitle may be cited as the ‘‘Armed Forces Force
Structures Review Act of 1996’’.
SEC. 1092. FINDINGS.
Congress makes the following findings:
(1) Since the collapse of the Soviet Union in
1991, the United States has conducted two substantial
assessments of the force structure of the Armed Forces
necessary to meet United States defense requirements.
(2) The assessment by the Bush Administration
(known as the ‘‘Base Force’’ assessment) and the as-
sessment by the Clinton Administration (known as
the ‘‘Bottom-Up Review’’) were intended to reassess
the force structure of the Armed Forces in light of the
changing realities of the post-Cold War world.
(3) Both assessments served an important pur-
pose in focusing attention on the need to reevaluate
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the military posture of the United States, but the pace
of global change necessitates a new, comprehensive as-
sessment of the defense strategy of the United States
and the force structure of the Armed Forces required
to meet the threats to the United States in the 21st
century.
(4) The Bottom-Up Review has been criticized on
several points, including—
(A) the assumptions underlying the strategy
of planning to fight and win two nearly simulta-
neous major regional conflicts;
(B) the force levels recommended to carry
out that strategy; and
(C) the funding proposed for such rec-
ommended force levels.
(5) In response to the recommendations of the
Commission on Roles and Missions of the Armed
Forces, the Secretary of Defense endorsed the concept
of conducting a quadrennial review of the defense pro-
gram at the beginning of each newly elected Presi-
dential administration, and the Secretary intends to
complete the first such review in 1997.
(6) The review is to involve a comprehensive ex-
amination of defense strategy, the force structure of
the active, guard, and reserve components, force mod-
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ernization plans, infrastructure, and other elements of
the defense program and policies in order to deter-
mine and express the defense strategy of the United
States and to establish a revised defense program
through the year 2005.
(7) In order to ensure that the force structure of
the Armed Forces is adequate to meet the challenges
to the national security interests of the United States
in the 21st century, to assist the Secretary of Defense
in conducting the review referred to in paragraph (5),
and to assess the appropriate force structure of the
Armed Forces through the year 2010 and beyond (if
practicable), it is important to provide for the con-
duct of an independent, non-partisan review of the
force structure that is more comprehensive than prior
assessments of the force structure, extends beyond the
quadrennial defense review, and explores innovative
and forward-thinking ways of meeting such chal-
lenges.
SEC. 1093. QUADRENNIAL DEFENSE REVIEW.
(a) REQUIREMENT IN 1997.—The Secretary of Defense,
in consultation with the Chairman of the Joint Chiefs of
Staff, shall complete in 1997 a review of the defense pro-
gram of the United States intended to satisfy the require-
ments for a Quadrennial Defense Review as identified in
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the recommendations of the Commission on Roles and Mis-
sions of the Armed Forces. The review shall include a com-
prehensive examination of the defense strategy, force struc-
ture, force modernization plans, infrastructure, and other
elements of the defense program and policies with a view
toward determining and expressing the defense strategy of
the United States and establishing a revised defense pro-
gram through the year 2005.
(b) INVOLVEMENT OF NATIONAL DEFENSE PANEL.—
(1) The Secretary shall apprise the National Defense Panel
established under section 1084, on an on-going basis, of the
work undertaken in the conduct of the review.
(2) Not later than March 14, 1997, the Chairman of
the National Defense Panel shall submit to the Secretary
the Panel’s assessment of work undertaken in the conduct
of the review as of that date and shall include in the assess-
ment the recommendations of the Panel for improvements
to the review, including recommendations for additional
matters to be covered in the review.
(c) ASSESSMENTS OF REVIEW.—Upon completion of
the review, the Chairman of the Joint Chiefs of Staff and
the Chairman of the National Defense Panel shall each pre-
pare and submit to the Secretary such chairman’s assess-
ment of the review in time for the inclusion of the assess-
ment in its entirety in the report under subsection (d).
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(d) REPORT.—Not later than May 15, 1997, the Sec-
retary shall submit to the Committee on Armed Services
of the Senate and the Committee on National Security of
the House of Representatives a comprehensive report on the
review. The report shall include the following:
(1) The results of the review, including a com-
prehensive discussion of the defense strategy of the
United States and the force structure best suited to
implement the strategy.
(2) The threats examined for purposes of the re-
view and the scenarios developed in the examination
of such threats.
(3) The assumptions used in the review, includ-
ing assumptions relating to the cooperation of allies
and mission-sharing, levels of acceptable risk, warn-
ing times, and intensity and duration of conflict.
(4) The effect on the force structure of prepara-
tions for and participation in peace operations and
military operations other than war.
(5) The effect on the force structure of the utiliza-
tion by the Armed Forces of technologies anticipated
to be available by the year 2005, including precision
guided munitions, stealth, night vision, digitization,
and communications, and the changes in doctrine
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and operational concepts that would result from the
utilization of such technologies.
(6) The manpower and sustainment policies re-
quired under the defense strategy to support engage-
ment in conflicts lasting more than 120 days.
(7) The anticipated roles and missions of the re-
serve components in the defense strategy and the
strength, capabilities, and equipment necessary to as-
sure that the reserve components can capably dis-
charge such roles and missions.
(8) The appropriate ratio of combat forces to
support forces (commonly referred to as the ‘‘tooth-to-
tail’’ ratio) under the defense strategy, including, in
particular, the appropriate number and size of head-
quarter units and Defense Agencies for that purpose.
(9) The air-lift and sea-lift capabilities required
to support the defense strategy.
(10) The forward presence, pre-positioning, and
other anticipatory deployments necessary under the
defense strategy for conflict deterrence and adequate
military response to anticipated conflicts.
(11) The extent to which resources must be shift-
ed among two or more theaters under the defense
strategy in the event of conflict in such theaters.
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(12) The advisability of revisions to the Unified
Command Plan as a result of the defense strategy.
SEC. 1094. NATIONAL DEFENSE PANEL.
(a) ESTABLISHMENT.—Not later than December 1,
1996, the Secretary of Defense shall establish a non-par-
tisan, independent panel to be known as the National De-
fense Panel (in this section referred to as the ‘‘Panel’’). The
Panel shall have the duties set forth in this section.
(b) MEMBERSHIP.—The Panel shall be composed of a
chairman and eight other individuals appointed by the Sec-
retary, in consultation with the Chairman and ranking
member of the Committee on Armed Services of the Senate
and the Chairman and ranking member of the Committee
on National Security of the House of Representatives, from
among individuals in the private sector who are recognized
experts in matters relating to the national security of the
United States.
(c) DUTIES.—The Panel shall—
(1) conduct and submit to the Secretary the as-
sessment of the review under section 1083 that is re-
quired by subsection (b)(2) of that section;
(2) conduct and submit to the Secretary the com-
prehensive assessment of the review that is required
by subsection (c) of that section upon completion of
the review; and
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(3) conduct the assessment of alternative force
structures for the Armed Forces required under sub-
section (d).
(d) ALTERNATIVE FORCE STRUCTURE ASSESSMENT.—
(1) The Panel shall submit to the Secretary an independent
assessment of a variety of possible force structures of the
Armed Forces through the year 2010 and beyond, including
the force structure identified in the report on the review
under section 1083(d). The purpose of the assessment is to
develop proposals for an ‘‘above the line’’ force structure of
the Armed Forces and to provide the Secretary and Con-
gress recommendations regarding the optimal force struc-
ture to meet anticipated threats to the national security of
the United States through the time covered by the assess-
ment.
(2) In conducting the assessment, the Panel shall ex-
amine a variety of potential threats (including near-term
threats and long-term threats) to the national security in-
terests of the United States, including the following:
(A) Conventional threats across a spectrum of
conflicts.
(B) The proliferation of weapons of mass de-
struction and the means of delivering such weapons,
and the illicit transfer of technology relating to such
weapons.
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(C) The vulnerability of United States tech-
nology to non-traditional threats, including informa-
tion warfare.
(D) Domestic and international terrorism.
(E) The emergence of a major challenger having
military capabilities similar to those of the United
States.
(F) Any other significant threat, or combination
of threats, identified by the Panel.
(3) For purposes of the assessment, the Panel shall de-
velop a variety of scenarios requiring a military response
by the Armed Forces, including the following:
(A) Scenarios developed in light of the threats
examined under paragraph (2).
(B) Scenarios developed in light of a continuum
of conflicts ranging from a conflict of lesser mag-
nitude than the conflict described in the Bottom-Up
Review to a conflict of greater magnitude than the
conflict so described.
(4) As part of the assessment, the Panel shall also—
(A) develop recommendations regarding a vari-
ety of force structures for the Armed Forces that per-
mit the forward deployment of sufficient land- and
sea-based forces to provide an effective deterrent to
conflict and to permit a military response by the
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United States to the scenarios developed under para-
graph (3);
(B) to the extent practicable, estimate the fund-
ing required by fiscal year, in constant fiscal year
1997 dollars, to organize, equip, and support the
forces contemplated under the force structures assessed
in the assessment; and
(C) comment on each of the matters also to be in-
cluded by the Secretary in the report required by sec-
tion 1083(d).
(e) REPORT.—(1) Not later than December 1, 1997,
the Panel shall submit to the Secretary a report setting forth
the activities, findings and recommendations of the Panel
under subsection (d), including any recommendations for
legislation that the Panel considers appropriate.
(2) Not later than December 15, 1997, the Secretary
shall, after consultation with the Chairman of the Joint
Chiefs of Staff, submit to the committees referred to in sub-
section (b)(1) a copy of the report under paragraph (1),
together with the Secretary’s comments on the report.
(f) INFORMATION
FROM FEDERAL AGENCIES.—The
Panel may secure directly from the Department of Defense
and any of its components and from any other Federal de-
partment and agency such information as the Panel consid-
ers necessary to carry out its duties under this section. The
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head of the department or agency concerned shall ensure
that information requested by the Panel under this sub-
section is promptly provided.
(g) PERSONNEL MATTERS.—(1) Each member of the
Panel shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed for
level IV of the Executive Schedule under section 5315 of title
5, United States Code, for each day (including travel time)
during which such member is engaged in the performance
of the duties of the Panel.
(2) The members of the Panel shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from
their homes or regular places of business in the performance
of services for the Panel.
(3)(A) The chairman of the Panel may, without regard
to the civil service laws and regulations, appoint and termi-
nate an executive director, and a staff of not more than
four additional individuals, if the Panel determines that
an executive director and staff are necessary in order for
the Panel to perform its duties effectively. The employment
of an executive director shall be subject to confirmation by
the Panel.
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(B) The chairman may fix the compensation of the ex-
ecutive director without regard to the provisions of chapter
51 and subchapter III of chapter 53 of title 5, United States
Code, relating to classification of positions and General
Schedule pay rates, except that the rate of pay for the execu-
tive director may not exceed the rate payable for level V
of the Executive Schedule under section 5316 of such title.
(4) Any Federal Government employee may be detailed
to the Panel without reimbursement, and such detail shall
be without interruption or loss of civil service status or
privilege. The Secretary shall ensure that sufficient person-
nel are detailed to the Panel to enable the Panel to carry
out its duties effectively.
(5) To the maximum extent practicable, the members
and employees of the Panel shall travel on military aircraft,
military ships, military vehicles, or other military convey-
ances when travel is necessary in the performance of a duty
of the Panel, except that no such aircraft, ship, vehicle, or
other conveyance may be scheduled primarily for the trans-
portation of any such member or employee when the cost
of commercial transportation is less expensive.
(h) ADMINISTRATIVE PROVISIONS.—(1) The Panel
may use the United States mails and obtain printing and
binding services in the same manner and under the same
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conditions as other departments and agencies of the Federal
Government.
(2) The Secretary shall furnish the Panel any adminis-
trative and support services requested by the Panel.
(3) The Panel may accept, use, and dispose of gifts
or donations of services or property.
(i) PAYMENT OF PANEL EXPENSES.—The compensa-
tion, travel expenses, and per diem allowances of members
and employees of the Panel shall be paid out of funds avail-
able to the Department of Defense for the payment of com-
pensation, travel allowances, and per diem allowances, re-
spectively, of civilian employees of the Department. The
other expenses of the Panel shall be paid out of funds avail-
able to the Department for the payment of similar expenses
incurred by the Department.
(j) TERMINATION.—The Panel shall terminate 30 days
after the date on which the Panel submits its report to the
Secretary under subsection (e).
SEC. 1095. POSTPONEMENT OF DEADLINES.
In the event that the election of President of the United
States in 1996 results in a change in administrations, each
deadline set forth in this subtitle shall be postponed by 3
months.
SEC. 1096. DEFINITIONS.
In this subtitle:
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(1) The term ‘‘ ‘above the line’ force structure of
the Armed Forces’’ means a force structure (including
numbers, strengths, and composition and major items
of equipment) for the Armed Forces at the following
unit levels:
(A) In the case of the Army, the division.
(B) In the case of the Navy, the battle
group.
(C) In the case of the Air Force, the wing.
(D) In the case of the Marine Corps, the ex-
peditionary force.
(E) In the case of special operations forces
of the Army, Navy, or Air Force, the major oper-
ating unit.
(F) In the case of the strategic forces, the
ballistic missile submarine fleet, the heavy bomb-
er force, and the intercontinental ballistic missile
force.
(2) The term ‘‘Commission on Roles and Mis-
sions of the Armed Forces’’ means the Commission on
Roles and Missions of the Armed Forces established by
subtitle E of title IX of the National Defense Author-
ization Act for Fiscal Year 1994 (Public Law 103–
160; 107 Stat. 1738; 10 U.S.C. 111 note).
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(3) The term ‘‘military operation other than
war’’ means any operation other than war that re-
quires the utilization of the military capabilities of
the Armed Forces, including peace operations, hu-
manitarian assistance operations and activities,
counter-terrorism operations and activities, disaster
relief activities, and counter-drug operations and ac-
tivities.
(4) The term ‘‘peace operations’’ means military
operations in support of diplomatic efforts to reach
long-term political settlements of conflicts and in-
cludes peacekeeping operations and peace enforcement
operations.
TITLE XI—DEPARTMENT OF
DEFENSE CIVILIAN PERSONNEL
Subtitle A—Personnel Management,
Pay, and Allowances
SEC. 1101. SCOPE OF REQUIREMENT FOR CONVERSION OF
MILITARY 
POSITIONS 
TO 
CIVILIAN 
POSI-
TIONS.
Section 1032(a) of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat.
429; 10 U.S.C. 129a note) is amended—
(1) by striking out the text of paragraph (1) and
inserting in lieu thereof the following: ‘‘By September
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30, 1996, the Secretary of Defense shall convert at
least 3,000 military positions to civilian positions.’’;
(2) by striking out paragraph (2); and
(3) by redesignating paragraph (3) as para-
graph (2).
SEC. 1102. RETENTION OF CIVILIAN EMPLOYEE POSITIONS
AT MILITARY TRAINING BASES TRANSFERRED
TO NATIONAL GUARD.
(a) MILITARY TRAINING INSTALLATIONS AFFECTED.—
This section applies with respect to each military training
installation that—
(1) was approved for closure in 1995 under the
Defense Base Closure and Realignment Act of 1990
(part A of title XXIX of Public Law 101–510; 10
U.S.C. 2687 note);
(2) is scheduled for transfer to National Guard
operation and control; and
(3) will continue to be used, after such transfer,
to provide training support to active and reserve com-
ponents of the Armed Forces.
(b) RETENTION OF EMPLOYEE POSITIONS.—In the
case of a military training installation described in sub-
section (a), the Secretary of Defense may retain civilian
employee positions of the Department of Defense at the in-
stallation after transfer to the National Guard of a State
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in order to facilitate active and reserve component training
at the installation. The Secretary, in consultation with the
Adjutant General of the National Guard of that State, shall
determine the extent to which positions at that installation
are to be retained as positions in the Department of De-
fense.
(c) MAXIMUM NUMBER OF POSITIONS RETAINED.—
The maximum number of civilian employee positions re-
tained at an installation under this section shall not exceed
20 percent of the Federal civilian workforce employed at
the installation as of September 8, 1995.
(d) REMOVAL OF POSITION.—The decision to retain ci-
vilian employee positions at an installation under this sec-
tion shall cease to apply to a position so retained on the
date on which the Secretary certifies to Congress that it is
no longer necessary to retain the position in order to ensure
that effective support is provided at the installation for ac-
tive and reserve component training.
SEC. 1103. CLARIFICATION OF LIMITATION ON FURNISHING
CLOTHING OR PAYING A UNIFORM ALLOW-
ANCE TO ENLISTED NATIONAL GUARD TECH-
NICIANS.
Section 418(c) of title 37, United States Code, is
amended by striking out ‘‘for which a uniform allowance
is paid under section 415 or 416 of this title’’ and inserting
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in lieu thereof ‘‘for which clothing is furnished or a uniform
allowance is paid under this section’’.
SEC. 1104. TRAVEL EXPENSES AND HEALTH CARE FOR CI-
VILIAN EMPLOYEES OF THE DEPARTMENT OF
DEFENSE ABROAD.
(a) IN GENERAL.—Chapter 81 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 1599b. Employees abroad: travel expenses; health
care
‘‘(a) IN GENERAL.—The Secretary of Defense may pro-
vide civilian employees, and members of their families,
abroad with benefits that are comparable to certain benefits
that are provided by the Secretary of State to members of
the Foreign Service and their families abroad as described
in subsections (b) and (c). The Secretary may designate the
employees and members of families who are eligible to re-
ceive the benefits.
‘‘(b) TRAVEL
AND RELATED EXPENSES.—The Sec-
retary of Defense may pay travel expenses and related ex-
penses for purposes and in amounts that are comparable
to the purposes for which, and the amounts in which, travel
and related expenses are paid by the Secretary of State
under section 901 of the Foreign Service Act of 1980 (22
U.S.C. 4081).
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‘‘(c) HEALTH CARE PROGRAM.—The Secretary of De-
fense may establish a health care program that is com-
parable to the health care program established by the Sec-
retary of State under section 904 of that Act (22 U.S.C.
4084).
‘‘(d) ASSISTANCE.—The Secretary of Defense may
enter into agreements with the heads of other departments
and agencies of the Federal Government in order to facili-
tate the payment of expenses authorized by subsection (b)
and to carry out a health care program authorized by sub-
section (c).
‘‘(e) ABROAD DEFINED.—In this section, the term
‘abroad’ means outside—
‘‘(1) the United States; and
‘‘(2) the territories and possessions of the United
States.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by inserting after
the item relating to section 1599a the following new item:
‘‘1599b. Employees abroad: travel expenses; health care.’’.
SEC. 1105. TRAVEL, TRANSPORTATION, AND RELOCATION
ALLOWANCES FOR CERTAIN FORMER NON-
APPROPRIATED FUND EMPLOYEES.
(a) IN GENERAL.—(1) Subchapter II of chapter 57 of
title 5, United States Code, is amended by adding at the
end the following new section:
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‘‘§ 5736. Travel, transportation, and relocation ex-
penses of certain nonappropriated fund
employees
‘‘An employee of a nonappropriated fund instrumen-
tality of the Department of Defense or the Coast Guard de-
scribed in section 2105(c) of this title who moves, without
a break in service of more than 3 days, to a position in
the Department of Defense or the Coast Guard, respectively,
may be authorized travel, transportation, and relocation ex-
penses and allowances under the same conditions and to
the same extent authorized by this subchapter for trans-
ferred employees.’’.
(2) The table of sections at the beginning of chapter
57 of such title is amended by inserting after the item relat-
ing to section 5735 the following new item:
‘‘5736. Travel, transportation, and relocation expenses of certain nonappropriated
fund employees.’’.
(b) APPLICABILITY.—Section 5736 of title 5, United
States Code (as added by subsection (a)(1)), shall apply to
moves between positions as described in such section that
are effective on or after October 1, 1996.
SEC. 1106. EMPLOYMENT AND SALARY PRACTICES APPLICA-
BLE TO DEPARTMENT OF DEFENSE OVER-
SEAS TEACHERS.
(a) EXPANSION
OF SCOPE
OF EDUCATORS COV-
ERED.—Section 2 of the Defense Department Overseas
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Teachers Pay and Personnel Practices Act (20 U.S.C. 901)
is amended—
(1) in subparagraph (A) of paragraph (1), by
inserting ‘‘, or are performed by an individual who
carried out certain teaching activities identified in
regulations prescribed by the Secretary of Defense’’
after ‘‘Defense,’’; and
(2) by striking out subparagraph (C) of para-
graph (2) and inserting in lieu thereof the following:
‘‘(C) who is employed in a teaching position
described in paragraph (1).’’.
(b) TRANSFER OF RESPONSIBILITY FOR EMPLOYMENT
AND SALARY PRACTICES.—Section 5 of such Act (20 U.S.C.
903) is amended—
(1) in subsection (a)—
(A) by striking out ‘‘secretary of each mili-
tary department in the Department of Defense’’
and inserting in lieu thereof ‘‘Secretary of De-
fense’’; and
(B) by striking out ‘‘his military depart-
ment’’ and inserting in lieu thereof ‘‘the Depart-
ment of Defense’’;
(2) in subsection (b)—
(A) in the matter preceding paragraph (1),
by striking out ‘‘secretary of each military de-
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partment—’’ and inserting in lieu thereof ‘‘Sec-
retary of Defense—’’; and
(B) in paragraph (1), by striking out ‘‘his
military department,’’ and inserting in lieu
thereof ‘‘the Department of Defense’’;
(3) in subsection (c)—
(A) by striking out ‘‘Secretary of each mili-
tary department’’ and inserting in lieu thereof
‘‘Secretary of Defense’’; and
(B) by striking out ‘‘his military depart-
ment’’ and inserting in lieu thereof ‘‘the Depart-
ment of Defense’’; and
(4) in subsection (d), by striking out ‘‘Secretary
of each military department’’ and inserting in lieu
thereof ‘‘Secretary of Defense’’.
SEC. 1107. EMPLOYMENT AND COMPENSATION OF CIVILIAN
FACULTY MEMBERS AT CERTAIN DEPART-
MENT OF DEFENSE SCHOOLS.
(a) FACULTIES.—Section 1595(c) of title 10, United
States Code, is amended by inserting after paragraph (3)
the following new paragraph (4):
‘‘(4) The English Language Center of the Defense
Language Institute.
‘‘(5) The Asia-Pacific Center for Security Stud-
ies.’’.
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(b) CERTAIN ADMINISTRATORS.—Such section 1595 is
amended by adding at the end the following:
‘‘(f) APPLICATION TO DIRECTOR AND DEPUTY DIREC-
TOR AT ASIA-PACIFIC CENTER FOR SECURITY STUDIES.—
In the case of the Asia-Pacific Center for Security Studies,
this section also applies with respect to the Director and
the Deputy Director.’’.
SEC. 1108. REIMBURSEMENT OF DEPARTMENT OF DEFENSE
DOMESTIC DEPENDENT SCHOOL BOARD MEM-
BERS FOR CERTAIN EXPENSES.
Section 2164(d) of title 10, United States Code, is
amended by adding at the end the following:
‘‘(7) The Secretary may provide for reimbursement of
a school board member for expenses incurred by the member
for travel, transportation, program fees, and activity fees
that the Secretary determines are reasonable and necessary
for the performance of school board duties by the member.’’.
SEC. 1109. EXTENSION OF AUTHORITY FOR CIVILIAN EM-
PLOYEES OF DEPARTMENT OF DEFENSE TO
PARTICIPATE VOLUNTARILY IN REDUCTIONS
IN FORCE.
Section 3502(f)(5) of title 5, United States Code, is
amended by striking out ‘‘September 30, 1996’’ and insert-
ing in lieu thereof ‘‘September 30, 2001’’.
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SEC. 1110. COMPENSATORY TIME OFF FOR OVERTIME WORK
PERFORMED BY WAGE-BOARD EMPLOYEES.
Section 5543 of title 5, United States Code, is amended
by adding at the end the following:
‘‘(c) The head of an agency may, on request of an em-
ployee, grant the employee compensatory time off from the
employee’s scheduled tour of duty instead of payment under
section 5544 of this title or section 7 of the Fair Labor
Standards Act of 1938 for an equal amount of time spent
in irregular or occasional overtime work.’’.
SEC. 1111. LIQUIDATION OF RESTORED ANNUAL LEAVE
THAT REMAINS UNUSED UPON TRANSFER OF
EMPLOYEE 
FROM 
INSTALLATION 
BEING
CLOSED OR REALIGNED.
(a) LUMP-SUM PAYMENT REQUIRED.—Section 5551 of
title 5, United States Code, is amended by adding at the
end the following new subsection:
‘‘(c)(1) Annual leave that is restored to an employee
of the Department of Defense under section 6304(d) of this
title by reason of the operation of paragraph (3) of such
section and remains unused upon the transfer of the em-
ployee to a position described in paragraph (2) shall be liq-
uidated by payment of a lump-sum for such leave to the
employee upon the transfer.
‘‘(2) A position referred to in paragraph (1) is a posi-
tion in a department or agency of the Federal Government
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outside the Department of Defense or a Department of De-
fense position that is not located at a Department of Defense
installation being closed or realigned as described in section
6304(d)(3) of this title.’’.
(b) APPLICABILITY.—Subsection (c) of section 5551 of
title 5, United States Code (as added by subsection (a)),
shall apply with respect to transfers described in such sub-
section (c) that take effect on or after the date of the enact-
ment of this Act.
SEC. 1112. WAIVER OF REQUIREMENT FOR REPAYMENT OF
VOLUNTARY SEPARATION INCENTIVE PAY BY
FORMER DEPARTMENT OF DEFENSE EMPLOY-
EES REEMPLOYED BY THE GOVERNMENT
WITHOUT PAY.
Section 5597(g) of title 5, United States Code, is
amended by adding at the end the following new paragraph:
‘‘(5) If the employment is without compensation, the
appointing official may waive the repayment.’’.
SEC. 1113. FEDERAL HOLIDAY OBSERVANCE RULES FOR DE-
PARTMENT OF DEFENSE EMPLOYEES.
(a) HOLIDAYS OCCURRING ON NONWORKDAYS.—Sec-
tion 6103(b) of title 5, United States Code, is amended by
inserting after paragraph (2) the following new paragraph:
‘‘(3) In the case of a full-time employee of the
Department of Defense, the following rules apply:
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‘‘(A) When a legal public holiday occurs on
a Sunday that is not a regular weekly workday
for an employee, the employee’s next workday is
the legal public holiday for the employee.
‘‘(B) When a legal public holiday occurs on
a regular weekly nonworkday that is adminis-
tratively scheduled for an employee instead of
Sunday, the employee’s next workday is the legal
public holiday for the employee.
‘‘(C) When a legal public holiday occurs on
an employee’s regular weekly nonworkday imme-
diately following a regular weekly nonworkday
that is administratively scheduled for the em-
ployee instead of Sunday, the employee’s next
workday is the legal public holiday for the em-
ployee.
‘‘(D) When a legal public holiday occurs on
an employee’s regular weekly nonworkday that is
not a nonworkday referred to in subparagraph
(A), (B), or (C), the employee’s preceding work-
day is the legal public holiday for the employee.
‘‘(E) The Secretary concerned (as defined in
section 101(a) of title 10) may schedule a legal
public holiday for an employee to be on a dif-
ferent day than the one that would otherwise
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apply for the employee under subparagraph (A),
(B), (C), or (D).
‘‘(F) If a legal public holiday for an em-
ployee would be different under paragraph (1) or
(2) than the day determined under this para-
graph, the legal public holiday for the employee
shall be the day that is determined under this
paragraph.’’.
(b) TECHNICAL
AND CONFORMING AMENDMENTS.—
Section 6103(b) of such title, as amended by subsection (a),
is further amended—
(1) in paragraph (1), by striking out ‘‘legal pub-
lic holiday for—’’ and all that follows through the pe-
riod and inserting in lieu thereof ‘‘legal public holi-
day for employees whose basic workweek is Monday
through Friday.’’; and
(2) in the matter following paragraph (3), by
striking out ‘‘This subsection, except subparagraph
(B) of paragraph (1),’’ and inserting in lieu thereof
‘‘Paragraphs (1) and (2)’’.
SEC. 1114. REVISION OF CERTAIN TRAVEL MANAGEMENT
AUTHORITIES.
(a) REPEAL OF REQUIREMENTS RELATING TO FIRE-
SAFE ACCOMMODATIONS.—(1) Section 5707 of title 5, Unit-
ed States Code, is amended by striking out subsection (d).
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(2) Subsection (b) of section 5 of the Hotel and Motel
Fire Safety Act of 1990 (Public Law 101–391; 104 Stat.
751; 5 U.S.C. 5707 note) is repealed.
(b) REPEAL OF PROHIBITION ON PAYMENT OF LODG-
ING EXPENSES OF DEPARTMENT OF DEFENSE EMPLOYEES
AND OTHER CIVILIANS WHEN ADEQUATE GOVERNMENT
QUARTERS ARE AVAILABLE.—(1) Section 1589 of title 10,
United States Code, is repealed.
(2) The table of sections at the beginning of chapter
81 of such title is amended by striking out the item relating
to such section.
Subtitle B—Defense Economic Ad-
justment, Diversification, Con-
version, and Stabilization
SEC. 1121. PILOT PROGRAMS FOR DEFENSE EMPLOYEES
CONVERTED TO CONTRACTOR EMPLOYEES
DUE TO PRIVATIZATION AT CLOSED MILI-
TARY INSTALLATIONS.
(a) PILOT PROGRAMS AUTHORIZED.—(1) The Sec-
retary of Defense, after consultation with the Secretary of
the Navy, the Secretary of the Air Force, and the Director
of the Office of Personnel Management, may establish a
pilot program under which Federal retirement benefits are
provided in accordance with this section to persons who
convert from Federal employment in the Department of the
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Navy or the Department of the Air Force to employment
by a Department of Defense contractor in connection with
the privatization of the performance of functions at selected
military installations being closed under the base closure
and realignment process.
(2) The Secretary of Defense shall select the installa-
tions to be covered by a pilot program under this section.
(b) ELIGIBLE TRANSFERRED EMPLOYEES.—(1) A per-
son is a transferred employee eligible for benefits under this
section if the person is a former employee of the Department
of Defense (other than a temporary employee) who—
(A) while employed by the Department of De-
fense in a function recommended to be privatized as
part of the closure and realignment of military in-
stallations pursuant to section 2903(e) of the Defense
Base Closure and Realignment Act of 1990 (title
XXIX of Public Law 101–510; 10 U.S.C. 2687 note)
and while covered under the Civil Service Retirement
System, separated from Federal service after being no-
tified that the employee would be separated in a re-
duction-in-force resulting from conversion from per-
formance of a function by Department of Defense em-
ployees at that military installation to performance of
that function by a defense contractor at that installa-
tion or in the vicinity of that installation;
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(B) is employed by the defense contractor within
60 days following such separation to perform substan-
tially the same function performed before the separa-
tion;
(C) remains employed by the defense contractor
(or a successor defense contractor) or subcontractor of
the defense contractor (or successor defense contractor)
until attaining early deferred retirement age (unless
the employment is sooner involuntarily terminated
for reasons other than performance or conduct of the
employee);
(D) at the time separated from Federal service,
was not eligible for an immediate annuity under the
Civil Service Retirement System; and
(E) does not withdraw retirement contributions
under section 8342 of title 5, United States Code.
(2) A person who, under paragraph (1), would other-
wise be eligible for an early deferred annuity under this
section shall not be eligible for such benefits if the person
received separation pay or severance pay due to a separa-
tion described in subparagraph (A) of that paragraph un-
less the person repays the full amount of such pay with
interest (computed at a rate determined appropriate by the
Director of the Office of Personnel Management) to the De-
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partment of Defense before attaining early deferred retire-
ment age.
(c) RETIREMENT BENEFITS OF TRANSFERRED EM-
PLOYEES.—In the case of a transferred employee covered
by a pilot program under this section, payment of a de-
ferred annuity for which the transferred employee is eligible
under section 8338(a) of title 5, United States Code, shall
commence on the first day of the first month that begins
after the date on which the transferred employee attains
early deferred retirement age, notwithstanding the age re-
quirement under that section.
(d) COMPUTATION
OF AVERAGE PAY.—(1)(A) This
paragraph applies to a transferred employee who was em-
ployed in a position classified under the General Schedule
immediately before the employee’s covered separation from
Federal service.
(B) Subject to subparagraph (C), for purposes of com-
puting the deferred annuity for a transferred employee re-
ferred to in subparagraph (A), the average pay of the trans-
ferred employee, computed under section 8331(4) of title 5,
United States Code, as of the date of the employee’s covered
separation from Federal service, shall be adjusted at the
same time and by the same percentage that rates of basic
pay are increased under section 5303 of such title during
the period beginning on that date and ending on the date
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on which the transferred employee attains early deferred re-
tirement age.
(C) The average pay of a transferred employee, as ad-
justed under subparagraph (B), may not exceed the amount
to which an annuity of the transferred employee could be
increased under section 8340 of title 5, United States Code,
in accordance with the limitation in subsection (g)(1) of
such section (relating to maximum pay, final pay, or aver-
age pay).
(2)(A) This paragraph applies to a transferred em-
ployee who was a prevailing rate employee (as defined
under section 5342(2) of title 5, United States Code) imme-
diately before the employee’s covered separation from Fed-
eral service.
(B) For purposes of computing the deferred annuity
for a transferred employee referred to in subparagraph (A),
the average pay of the transferred employee, computed
under section 8331(4) of title 5, United States Code, as of
the date of the employee’s covered separation from Federal
service, shall be adjusted at the same time and by the same
percentage that pay rates for positions that are in the same
area as, and are comparable to, the last position the trans-
ferred employee held as a prevailing rate employee, are in-
creased under section 5343(a) of such title during the period
beginning on that date and ending on the date on which
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the transferred employee attains early deferred retirement
age.
(e) PAYMENT
OF UNFUNDED LIABILITY.—(1) The
military department concerned shall be liable for that por-
tion of any estimated increase in the unfunded liability of
the Civil Service Retirement and Disability Fund estab-
lished under section 8348 of title 5, United States Code,
which is attributable to any benefits payable from such
Fund to a transferred employee, and any survivor of a
transferred employee, when the increase results from—
(A) an increase in the average pay of the trans-
ferred employee under subsection (d) upon which such
benefits are computed; and
(B) the commencement of an early deferred an-
nuity in accordance with this section before the at-
tainment of 62 years of age by the transferred em-
ployee.
(2) The estimated increase in the unfunded liability
for each department referred to in paragraph (1), shall be
determined by the Director of the Office of Personnel Man-
agement. In making the determination, the Director shall
consider any savings to the Fund as a result of the program
established under this section. The Secretary of the military
department concerned shall pay the amount so determined
to the Director in 10 equal annual installments with inter-
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est computed at the rate used in the most recent valuation
of the Civil Service Retirement System, with the first pay-
ment thereof due at the end of the fiscal year in which an
increase in average pay under subsection (d) becomes effec-
tive.
(f) CONTRACTOR SERVICE NOT CREDITABLE.—Service
performed by a transferred employee for a defense contrac-
tor after the employee’s covered separation from Federal
service is not creditable service for purposes of subchapter
III of chapter 83 of title 5, United States Code.
(g) RECEIPT OF BENEFITS WHILE EMPLOYED BY A
DEFENSE
CONTRACTOR.—A transferred employee may
commence receipt of an early deferred annuity in accord-
ance with this section while continuing to work for a defense
contractor.
(h) LUMP-SUM CREDIT PAYMENT.—If a transferred
employee dies before attaining early deferred retirement
age, such employee shall be treated as a former employee
who dies not retired for purposes of payment of the lump-
sum credit under section 8342(d) of title 5, United States
Code.
(i) CONTINUED FEDERAL HEALTH BENEFITS COV-
ERAGE.—Notwithstanding section 5905a(e)(1)(A) of title 5,
United States Code, the continued coverage of a transferred
employee for health benefits under chapter 89 of such title
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by reason of the application of section 8905a of such title
to such employee shall terminate 90 days after the date of
the employee’s covered separation from Federal employ-
ment. For the purposes of the preceding sentence, a person
who, except for subsection (b)(2), would be a transferred em-
ployee shall be considered a transferred employee.
(j) REPORT BY GAO.—The Comptroller General of the
United States shall conduct a study of each pilot program,
if any, established under this section and submit a report
on the pilot program to Congress not later than two years
after the date on which the program is established. The re-
port shall contain the following:
(1) A review and evaluation of the program, in-
cluding—
(A) an evaluation of the success of the pri-
vatization outcomes of the program;
(B) a comparison and evaluation of such
privatization outcomes with the privatization
outcomes with respect to facilities at other mili-
tary installations closed or realigned under the
base closure laws;
(C) an evaluation of the impact of the pro-
gram on the Federal workforce and whether the
program results in the maintenance of a skilled
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workforce for defense contractors at an acceptable
cost to the military department concerned; and
(D) an assessment of the extent to which the
pilot program is a cost-effective means of facili-
tating privatization of the performance of Fed-
eral activities.
(2) Recommendations relating to the expansion
of the program to other installations and employees.
(3) Any other recommendation relating to the
program.
(k) IMPLEMENTING REGULATIONS.—Not later than 30
days after the Secretary of Defense notifies the Director of
the Office of Personnel Management of a decision to estab-
lish a pilot program under this section, the Director shall
prescribe regulations to carry out the provisions of this sec-
tion with respect to that pilot program. Before prescribing
the regulations, the Director shall consult with the Sec-
retary.
(l) DEFINITIONS.—In this section:
(1) The term ‘‘transferred employee’’ means a
person who, pursuant to subsection (b), is eligible for
benefits under this section.
(2) The term ‘‘covered separation from Federal
service’’ means a separation from Federal service as
described under subsection (b)(1)(A).
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(3) The term ‘‘Civil Service Retirement System’’
means the retirement system under subchapter III of
chapter 83 of title 5, United States Code.
(4) The term ‘‘defense contractor’’ means any en-
tity that—
(A) contracts with the Department of De-
fense to perform a function previously performed
by Department of Defense employees;
(B) performs that function at the same in-
stallation at which such function was previously
performed by Department of Defense employees
or in the vicinity of that installation; and
(C) is the employer of one or more trans-
ferred employees.
(5) The term ‘‘early deferred retirement age’’
means the first age at which a transferred employee
would have been eligible for immediate retirement
under subsection (a) or (b) of section 8336 of title 5,
United States Code, if such transferred employee had
remained an employee within the meaning of section
8331(1) of such title continuously until attaining
such age.
(6) The term ‘‘severance pay’’ means severance
pay payable under section 5595 of title 5, United
States Code.
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(7) The term ‘‘separation pay’’ means separation
pay payable under section 5597 of title 5, United
States Code.
(m) EFFECTIVE DATE.—This section shall take effect
on August 1, 1996, and shall apply to covered separations
from Federal service on or after that date.
SEC. 
1122. 
TROOPS-TO-TEACHERS 
PROGRAM 
IMPROVE-
MENTS APPLIED TO CIVILIAN PERSONNEL.
(a) SEPARATED CIVILIAN EMPLOYEES OF THE DE-
PARTMENT OF DEFENSE.—(1) Subsection (a) of section
1598 of title 10, United States Code, is amended by striking
out ‘‘may establish’’ and inserting in lieu thereof ‘‘shall es-
tablish’’.
(2) Subsection (d)(2) of such section is amended by
striking out ‘‘five school years’’ in subparagraphs (A) and
(B) and inserting in lieu thereof ‘‘two school years’’.
(b) DISPLACED DEPARTMENT OF DEFENSE CONTRAC-
TOR EMPLOYEES.—Section 2410j(f)(2) of such title is
amended by striking out ‘‘five school years’’ in subpara-
graphs (A) and (B) and inserting in lieu thereof ‘‘two school
years’’.
(c) SAVINGS PROVISION.—The amendments made by
this section do not effect obligations under agreements en-
tered into in accordance with section 1598 or 2410j of title
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10, United States Code, before the date of the enactment
of this Act.
Subtitle C—Defense Intelligence
Personnel
SEC. 1131. SHORT TITLE.
This subtitle may be cited as the ‘‘Department of De-
fense Civilian Intelligence Personnel Reform Act of 1996’’.
SEC. 
1132. 
CIVILIAN 
INTELLIGENCE 
PERSONNEL
MANAGEMENT.
Section 1590 of title 10, United States Code, is amend-
ed to read as follows:
‘‘§ 1590. 
Management 
of 
civilian 
intelligence
personnel of the Department of Defense
‘‘(a) GENERAL PERSONNEL MANAGEMENT AUTHOR-
ITY.—The Secretary of Defense may, without regard to the
provisions of any other law relating to the appointment,
number, classification, or compensation of employees—
‘‘(1) establish—
‘‘(A) as positions in the excepted service,
such defense intelligence component positions
(including Intelligence Senior Level positions) as
the Secretary determines necessary to carry out
the intelligence functions of the defense intel-
ligence components, but not to exceed in number
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the number of the defense intelligence component
positions established as of January 1, 1996; and
‘‘(B) such Intelligence Senior Executive
Service positions as the Secretary determines
necessary to carry out functions referred to in
subparagraph (B);
‘‘(2) appoint individuals to such positions (after
taking into consideration the availability of pref-
erence eligibles for appointment to such positions);
and
‘‘(3) fix the compensation of such individuals for
service in such positions.
‘‘(b) BASIC PAY.—(1)(A) Subject to subparagraph (B)
and paragraph (2), the Secretary of Defense shall fix the
rates of basic pay for positions established under subsection
(a) in relation to the rates of basic pay provided in subpart
D of part III of title 5 for positions subject to that subpart
which have corresponding levels of duties and responsibil-
ities.
‘‘(B) Except as otherwise provided by law, no rate of
basic pay fixed under subparagraph (A) for a position es-
tablished under subsection (a) may exceed—
‘‘(i) in the case of an Intelligence Senior Execu-
tive Service position, the maximum rate provided in
section 5382 of title 5;
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‘‘(ii) in the case of an Intelligence Senior Level
position, the maximum rate provided in section 5382
of title 5; and
‘‘(iii) in the case of any other defense intelligence
component position, the maximum rate provided in
section 5306(e) of title 5.
‘‘(2) The Secretary of Defense may, consistent with sec-
tion 5341 of title 5, adopt such provisions of that title as
provide for prevailing rate systems of basic pay and may
apply those provisions to positions for civilian employees
in or under which the Department of Defense may employ
individuals described by section 5342(a)(2)(A) of such title.
‘‘(c) ADDITIONAL COMPENSATION, INCENTIVES, AND
ALLOWANCES.—(1) Employees in defense intelligence com-
ponent positions may be paid additional compensation, in-
cluding benefits, incentives, and allowances, in accordance
with this subsection if, and to the extent, authorized in reg-
ulations prescribed by the Secretary of Defense.
‘‘(2) Additional compensation under this subsection
shall be consistent with, and not in excess of the levels au-
thorized for, comparable positions authorized by title 5.
‘‘(3)(A) Employees in defense intelligence component
positions, if citizens or nationals of the United States, may
be paid an allowance while stationed outside the continen-
tal United States or in Alaska.
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‘‘(B) Subject to subparagraph (C), allowances under
subparagraph (A) shall be based on—
‘‘(i) living costs substantially higher than in the
District of Columbia;
‘‘(ii) conditions of environment which differ sub-
stantially from conditions of environment in the con-
tinental United States and warrant an allowance as
a recruitment incentive; or
‘‘(iii) both of the factors described in clauses (i)
and (ii).
‘‘(C) An allowance under subparagraph (A) may not
exceed an allowance authorized to be paid by section
5941(a) of title 5 for employees whose rates of basic pay
are fixed by statute.
‘‘(d) INTELLIGENCE SENIOR EXECUTIVE SERVICE.—
(1) The Secretary of Defense may establish an Intelligence
Senior Executive Service for defense intelligence component
positions established pursuant to subsection (a) that are
equivalent to Senior Executive Service positions.
‘‘(2) The Secretary of Defense shall prescribe regula-
tions for the Intelligence Senior Executive Service which are
consistent with the requirements set forth in sections 3131,
3132(a)(2), 3396(c), 3592, 3595(a), 5384, and 6304 of title
5, subsections (a), (b), and (c) of section 7543 of such title
(except that any hearing or appeal to which a member of
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the Intelligence Senior Executive Service is entitled shall
be held or decided pursuant to the regulations), and sub-
chapter II of chapter 43 of such title. To the extent that
the Secretary determines it practicable to apply to members
of, or applicants for, the Intelligence Senior Executive Serv-
ice other provisions of title 5 that apply to members of, or
applicants for, the Senior Executive Service, the Secretary
shall also prescribe regulations to implement those sections
with respect to the Intelligence Senior Executive Service.
‘‘(e) AWARD OF RANK TO MEMBERS OF THE INTEL-
LIGENCE SENIOR EXECUTIVE SERVICE.—The President,
based on the recommendations of the Secretary of Defense,
may award a rank referred to in section 4507 of title 5
to members of the Intelligence Senior Executive Service
whose positions may be established pursuant to this section.
The awarding of such rank shall be made in a manner con-
sistent with the provisions of that section.
‘‘(f) INTELLIGENCE SENIOR LEVEL POSITIONS.—The
Secretary of Defense may, in accordance with regulations
prescribed by the Secretary, designate as an Intelligence
Senior Level position any defense intelligence component
position that, as determined by the Secretary—
‘‘(1) is classifiable above grade GS–15 of the
General Schedule;
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‘‘(2) does not satisfy functional or program man-
agement criteria for being designated an Intelligence
Senior Executive Service position; and
‘‘(3) has no more than minimal supervisory re-
sponsibilities.
‘‘(g) TIME LIMITED APPOINTMENTS.—(1) The Sec-
retary of Defense may, in regulations, authorize appointing
officials to make time limited appointments to defense intel-
ligence component positions specified in the regulations.
‘‘(2) The Secretary of Defense shall review each time
limited appointment in a defense intelligence component
position at the end of the first year of the period of the
appointment and determine whether the appointment
should be continued for the remainder of the period. The
continuation of a time limited appointment after the first
year shall be subject to the approval of the Secretary.
‘‘(3) An employee serving in a defense intelligence com-
ponent position pursuant to a time limited appointment
is not eligible for a permanent appointment to an Intel-
ligence Senior Executive Service position (including a posi-
tion in which serving) unless selected for the permanent ap-
pointment on a competitive basis.
‘‘(4) In this subsection, the term ‘time limited appoint-
ment’ means an appointment (subject to the condition in
paragraph (2)) for a period not to exceed two years.
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‘‘(h) 
TERMINATION
OF
CIVILIAN
INTELLIGENCE
EMPLOYEES.—(1) Notwithstanding any other provision of
law, the Secretary of Defense may terminate the employ-
ment of any employee in a defense intelligence component
position if the Secretary—
‘‘(A) considers such action to be in the interests
of the United States; and
‘‘(B) determines that the procedures prescribed
in other provisions of law that authorize the termi-
nation of the employment of such employee cannot be
invoked in a manner consistent with the national se-
curity.
‘‘(2) A decision by the Secretary of Defense to termi-
nate the employment of an employee under this subsection
is final and may not be appealed or reviewed outside the
Department of Defense.
‘‘(3) The Secretary of Defense shall promptly notify
the Committee on National Security and the Permanent Se-
lect Committee on Intelligence of the House of Representa-
tives and the Committee on Armed Services and the Select
Committee on Intelligence of the Senate whenever the Sec-
retary terminates the employment of any employee under
the authority of this subsection.
‘‘(4) Any termination of employment under this sub-
section shall not affect the right of the employee involved
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to seek or accept employment with any other department
or agency of the United States if that employee is declared
eligible for such employment by the Director of the Office
of Personnel Management.
‘‘(5) The authority of the Secretary of Defense under
this subsection may be delegated only to the Deputy Sec-
retary of Defense and the head of a defense intelligence com-
ponent (with respect to employees of that component). An
action to terminate employment of such an employee by any
such official may be appealed to the Secretary of Defense.
‘‘(i) REDUCTIONS
AND
OTHER
ADJUSTMENTS
IN
FORCE.—(1) The Secretary of Defense, in consultation with
the Director of the Office of Personnel Management, shall
prescribe regulations for the separation of employees in de-
fense intelligence component positions, including members
of the Intelligence Senior Executive Service and employees
in Intelligence Senior Level positions, in a reduction in
force or other adjustment in force. The regulations shall
apply to such a reduction in force or other adjustment in
force notwithstanding sections 3501(b) and 3502 of title 5.
‘‘(2) The regulations shall give effect to—
‘‘(A) tenure of employment;
‘‘(B) military preference, subject to sections
3501(a)(3) and 3502(b) of title 5;
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‘‘(C) the veteran’s preference under section
3502(b) of title 5;
‘‘(D) performance; and
‘‘(E) length of service computed in accordance
with the second sentence of section 3502(a) of title 5.
‘‘(2) The regulations relating to removal from the In-
telligence Senior Executive Service in a reduction in force
or other adjustment in force shall be consistent with section
3595(a) of title 5.
‘‘(3)(A) The regulations shall provide a right of appeal
regarding a personnel action under the regulations. The ap-
peal shall be determined within the Department of Defense.
An appeal determined at the highest level provided in the
regulations shall be final and not subject to review outside
the Department of Defense. A personnel action covered by
the regulations is not subject to any other provision of law
that provides appellate rights or procedures.
‘‘(B) Notwithstanding subparagraph (A), a preference
eligible referred to in section 7511(a)(1)(B) of title 5 may
appeal to the Merit Systems Protection Board any person-
nel action taken under the regulations. Section 7701 of title
5 shall apply to any such appeal.
‘‘(j) APPLICABILITY OF MERIT SYSTEM PRINCIPLES.—
Section 2301 of title 5 shall apply to the exercise of author-
ity under this section.
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‘‘(k) COLLECTIVE BARGAINING AGREEMENTS.—Noth-
ing in this section may be construed to impair the contin-
ued effectiveness of a collective bargaining agreement with
respect to an agency or office that is a successor to an agen-
cy or office covered by the agreement before the succession.
‘‘(l) NOTIFICATION OF CONGRESS.—At least 60 days
before the effective date of regulations prescribed to carry
out this section, the Secretary of Defense shall submit the
regulations to the Committee on National Security and the
Permanent Select Committee on Intelligence of the House
of Representatives and the Committee on Armed Services
and the Select Committee on Intelligence of the Senate.
‘‘(m) DEFINITIONS.—In this section:
‘‘(1) The term ‘defense intelligence component
position’ means a position of civilian employment as
an intelligence officer or employee of a defense intel-
ligence component.
‘‘(2) The term ‘defense intelligence component’
means each of the following components of the
Department of Defense:
‘‘(A) The National Security Agency.
‘‘(B) The Defense Intelligence Agency.
‘‘(C) The Central Imagery Office.
‘‘(D) Any component of a military depart-
ment that performs intelligence functions and is
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designated as a defense intelligence component by
the Secretary of Defense.
‘‘(E) Any other component of the Depart-
ment of Defense that performs intelligence func-
tions and is designated as a defense intelligence
component by the Secretary of Defense.
‘‘(F) Any successor to a component listed
in, or designated pursuant to, this paragraph.
‘‘(3) The term ‘Intelligence Senior Level position’
means a defense intelligence component position des-
ignated as an Intelligence Senior Level position pur-
suant to subsection (f).
‘‘(4) The term ‘excepted service’ has the meaning
given such term in section 2103 of title 5.
‘‘(5) The term ‘preference eligible’ has the mean-
ing given such term in section 2108(3) of title 5.
‘‘(6) The term ‘Senior Executive Service posi-
tion’ has the meaning given such term in section
3132(a)(2) of title 5.
‘‘(7) The term ‘collective bargaining agreement’
has the meaning given such term in section 7103(8)
of title 5.’’.
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SEC. 1133. REPEALS.
(a) DEFENSE
INTELLIGENCE
SENIOR
EXECUTIVE
SERVICE.—Sections 1601, 1603, and 1604 of title 10, Unit-
ed States Code, are repealed.
(b) NATIONAL SECURITY AGENCY PERSONNEL MAN-
AGEMENT AUTHORITIES.—(1) Sections 2 and 4 of the
National Security Agency Act of 1959 (50 U.S.C. 402 note)
are repealed.
(2) Section 303 of the Internal Security Act of 1950
(50 U.S.C. 833) is repealed.
SEC. 1134. CLERICAL AMENDMENTS.
(a) AMENDED SECTION HEADING.—The item relating
to section 1590 in the table of sections at the beginning of
chapter 81 of title 10, United States Code, is amended to
read as follows:
‘‘1590. Management of civilian intelligence personnel of the Department of
Defense.’’.
(b) REPEALED SECTIONS.—The table of sections at the
beginning of chapter 83 of title 10, United States Code, is
amended by striking out the items relating to sections 1601,
1603, and 1604.
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TITLE XII—FEDERAL CHARTER
FOR THE FLEET RESERVE AS-
SOCIATION
SEC. 1201. RECOGNITION AND GRANT OF FEDERAL CHAR-
TER.
The Fleet Reserve Association, a nonprofit corporation
organized under the laws of the State of Delaware, is recog-
nized as such and granted a Federal charter.
SEC. 1202. POWERS.
The Fleet Reserve Association (in this title referred to
as the ‘‘association’’) shall have only those powers granted
to it through its bylaws and articles of incorporation filed
in the State in which it is incorporated and subject to the
laws of such State.
SEC. 1203. PURPOSES.
The purposes of the association are those provided in
its bylaws and articles of incorporation and shall include
the following:
(1) Upholding and defending the Constitution of
the United States.
(2) Aiding and maintaining an adequate naval
defense for the United States.
(3) Assisting the recruitment of the best person-
nel available for the United States Navy, United
States Marine Corps, and United States Coast Guard.
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(4) Providing for the welfare of the personnel
who serve in the United States Navy, United States
Marine Corps, and United States Coast Guard.
(5) Continuing to serve loyally the United States
Navy, United States Marine Corps, and United
States Coast Guard.
(6) Preserving the spirit of shipmanship by pro-
viding assistance to shipmates and their families.
(7) Instilling love of the United States and the
flag and promoting soundness of mind and body in
the youth of the United States.
SEC. 1204. SERVICE OF PROCESS.
With respect to service of process, the association shall
comply with the laws of the State in which it is incor-
porated and those States in which it carries on its activities
in furtherance of its corporate purposes.
SEC. 1205. MEMBERSHIP.
Except as provided in section 1208(g), eligibility for
membership in the association and the rights and privileges
of members shall be as provided in the bylaws and articles
of incorporation of the association.
SEC. 1206. BOARD OF DIRECTORS.
Except as provided in section 1208(g), the composition
of the board of directors of the association and the respon-
sibilities of the board shall be as provided in the bylaws
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and articles of incorporation of the association and in con-
formity with the laws of the State in which it is incor-
porated.
SEC. 1207. OFFICERS.
Except as provided in section 1208(g), the positions
of officers of the association and the election of members
to such officers shall be as provided in the bylaws and arti-
cles of incorporation of the association and in conformity
with the laws of the State in which it is incorporated.
SEC. 1208. RESTRICTIONS.
(a) INCOME AND COMPENSATION.—No part of the in-
come or assets of the association may inure to the benefit
of any member, officer, or director of the association or be
distributed to any such individual during the life of this
charter. Nothing in this subsection may be construed to pre-
vent the payment of reasonable compensation to the officers
and employees of the association or reimbursement for ac-
tual and necessary expenses in amounts approved by the
board of directors.
(b) LOANS.—The association may not make any loan
to any member, officer, director, or employee of the associa-
tion.
(c) ISSUANCE
OF STOCK
AND PAYMENT
OF DIVI-
DENDS.—The association may not issue any shares of stock
or declare or pay any dividend.
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(d) FEDERAL APPROVAL.—The association may not
claim the approval of the Congress or the authorization of
the Federal Government for any of its activities by virtue
of this title.
(e) CORPORATE STATUS.—The association shall main-
tain its status as a corporation organized and incorporated
under the laws of the State of Delaware.
(f) CORPORATE FUNCTION.—The association shall
function as an educational, patriotic, civic, historical, and
research organization under the laws of the State in which
it is incorporated.
(g) NONDISCRIMINATION.—In establishing the condi-
tions of membership in the association and in determining
the requirements for serving on the board of directors or
as an officer of the association, the association may not dis-
criminate on the basis of race, color, religion, sex, handicap,
age, or national origin.
SEC. 1209. LIABILITY.
The association shall be liable for the acts of its offi-
cers, directors, employees, and agents whenever such indi-
viduals act within the scope of their authority.
SEC. 1210. MAINTENANCE AND INSPECTION OF BOOKS AND
RECORDS.
(a) BOOKS AND RECORDS OF ACCOUNT.—The associa-
tion shall keep correct and complete books and records of
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account and minutes of any proceeding of the association
involving any of its members, the board of directors, or any
committee having authority under the board of directors.
(b) NAMES AND ADDRESSES OF MEMBERS.—The asso-
ciation shall keep at its principal office a record of the
names and addresses of all members having the right to vote
in any proceeding of the association.
(c) RIGHT TO INSPECT BOOKS AND RECORDS.—All
books and records of the association may be inspected by
any member having the right to vote in any proceeding of
the association, or by any agent or attorney of such member,
for any proper purpose at any reasonable time.
(d) APPLICATION OF STATE LAW.—This section may
not be construed to contravene any applicable State law.
SEC. 1211. AUDIT OF FINANCIAL TRANSACTIONS.
The first section of the Act entitled ‘‘An Act to provide
for audit of accounts of private corporations established
under Federal law’’, approved August 30, 1964 (36 U.S.C.
1101), is amended by adding at the end the following:
‘‘(77) Fleet Reserve Association.’’.
SEC. 1212. ANNUAL REPORT.
The association shall annually submit to Congress a
report concerning the activities of the association during
the preceding fiscal year. The annual report shall be sub-
mitted on the same date as the report of the audit required
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by reason of the amendment made in section 1211. The an-
nual report shall not be printed as a public document.
SEC. 1213. RESERVATION OF RIGHT TO AMEND OR REPEAL
CHARTER.
The right to alter, amend, or repeal this title is ex-
pressly reserved to Congress.
SEC. 1214. TAX-EXEMPT STATUS.
The association shall maintain its status as an organi-
zation exempt from taxation as provided in the Internal
Revenue Code of 1986.
SEC. 1215. TERMINATION.
The charter granted in this title shall expire if the as-
sociation fails to comply with any of the provisions of this
title.
SEC. 1216. DEFINITION.
For purposes of this title, the term ‘‘State’’ means any
of the several States, the District of Columbia, the Common-
wealth of Puerto Rico, the Commonwealth of the Northern
Mariana Islands, the United States Virgin Islands, Guam,
American Samoa, the Republic of the Marshall Islands, the
Federated States Of Micronesia, the Republic of Palau, and
any other territory or possession of the United States.
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TITLE XIII—DEFENSE AGAINST
WEAPONS OF MASS DESTRUC-
TION
SEC. 1301. SHORT TITLE.
This title may be cited as the ‘‘Defense Against Weap-
ons of Mass Destruction Act of 1996’’.
SEC. 1302. FINDINGS.
Congress makes the following findings:
(1) Weapons of mass destruction and related ma-
terials and technologies are increasingly available
from worldwide sources. Technical information relat-
ing to such weapons is readily available on the
Internet, and raw materials for chemical, biological,
and radiological weapons are widely available for le-
gitimate commercial purposes.
(2) The former Soviet Union produced and
maintained a vast array of nuclear, biological, and
chemical weapons of mass destruction.
(3) Many of the states of the former Soviet
Union retain the facilities, materials, and tech-
nologies capable of producing additional quantities of
weapons of mass destruction.
(4) The disintegration of the former Soviet
Union was accompanied by disruptions of command
and control systems, deficiencies in accountability for
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weapons, weapons-related materials and technologies,
economic hardships, and significant gaps in border
control among the states of the former Soviet Union.
The problems of organized crime and corruption in
the states of the former Soviet Union increase the po-
tential for proliferation of nuclear, radiological, bio-
logical, and chemical weapons and related materials.
(5) The conditions described in paragraph (4)
have substantially increased the ability of potentially
hostile nations, terrorist groups, and individuals to
acquire weapons of mass destruction and related ma-
terials and technologies from within the states of the
former Soviet Union and from unemployed scientists
who worked on those programs.
(6) As a result of such conditions, the capability
of potentially hostile nations and terrorist groups to
acquire nuclear, radiological, biological, and chemical
weapons is greater than any time in history.
(7) The President has identified North Korea,
Iraq, Iran, and Libya as hostile states which already
possess some weapons of mass destruction and are de-
veloping others.
(8) The acquisition or the development and use
of weapons of mass destruction is well within the ca-
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pability of many extremist and terrorist movements,
acting independently or as proxies for foreign states.
(9) Foreign states can transfer weapons to or
otherwise aid extremist and terrorist movements indi-
rectly and with plausible deniability.
(10) Terrorist groups have already conducted
chemical attacks against civilian targets in the Unit-
ed States and Japan, and a radiological attack in
Russia.
(11) The potential for the national security of
the United States to be threatened by nuclear, radio-
logical, chemical, or biological terrorism must be
taken as seriously as the risk of an attack by long-
range ballistic missiles carrying nuclear weapons.
(12) There is a significant and growing threat of
attack by weapons of mass destruction on targets that
are not military targets in the usual sense of the
term.
(13) Concomitantly, the threat posed to the citi-
zens of the United States by nuclear, radiological, bio-
logical, and chemical weapons delivered by unconven-
tional means is significant and growing.
(14) Mass terror may result from terrorist inci-
dents involving nuclear, radiological, biological, or
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chemical materials, even if such materials are not
configured as military weapons.
(15) Facilities required for production of radio-
logical, biological, and chemical weapons are much
smaller and harder to detect than nuclear weapons fa-
cilities, and biological, and chemical weapons can be
deployed by alternative delivery means that are much
harder to detect than long-range ballistic missiles.
(16) Such delivery systems have no assignment
of responsibility, unlike ballistic missiles, for which a
launch location would be unambiguously known.
(17) Covert or unconventional means of delivery
of nuclear, radiological, biological, and chemical
weapons, which might be preferable to foreign states
and nonstate organizations, include cargo ships, pas-
senger aircraft, commercial and private vehicles and
vessels, and commercial cargo shipments routed
through multiple destinations.
(18) Traditional arms control efforts assume
large state efforts with detectable manufacturing pro-
grams and weapons production programs, but are in-
effective in monitoring and controlling smaller,
though potentially more dangerous, unconventional
proliferation efforts.
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(19) Conventional counterproliferation efforts
would do little to detect or prevent the rapid develop-
ment of a capability to suddenly manufacture several
hundred chemical or biological weapons with nothing
but commercial supplies and equipment.
(20) The United States lacks adequate planning
and countermeasures to address the threat of nuclear,
radiological, biological, and chemical terrorism.
(21) The Department of Energy has established
a Nuclear Emergency Response Team which is avail-
able in case of nuclear or radiological emergencies,
but no comparable units exist to deal with emer-
gencies involving biological, or chemical weapons or
related materials.
(22) State and local emergency response person-
nel are not adequately prepared or trained for inci-
dents involving nuclear, radiological, biological, or
chemical materials.
(23) Exercises of the Federal, State, and local re-
sponse to nuclear, radiological, biological, or chemical
terrorism have revealed serious deficiencies in pre-
paredness and severe problems of coordination.
(24) The development of, and allocation of re-
sponsibilities for, effective countermeasures to nuclear,
radiological, biological, or chemical terrorism in the
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United States requires well-coordinated participation
of many Federal agencies, and careful planning by
the Federal Government and State and local govern-
ments.
(25) Training and exercises can significantly
improve the preparedness of State and local emer-
gency response personnel for emergencies involving
nuclear, radiological, biological, or chemical weapons
or related materials.
(26) Sharing of the expertise and capabilities of
the Department of Defense, which traditionally has
provided assistance to Federal, State, and local offi-
cials in neutralizing, dismantling, and disposing of
explosive ordnance, as well as radiological, biological,
and chemical materials, can be a vital contribution
to the development and deployment of counter-
measures against nuclear, biological, and chemical
weapons of mass destruction.
(27) The United States lacks effective policy co-
ordination regarding the threat posed by the pro-
liferation of weapons of mass destruction.
SEC. 1303. DEFINITIONS.
In this title:
(1) The term ‘‘weapon of mass destruction’’
means any weapon or device that is intended, or has
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the capability, to cause death or serious bodily injury
to a significant number of people through the release,
dissemination, or impact of—
(A) toxic or poisonous chemicals or their
precursors;
(B) a disease organism; or
(C) radiation or radioactivity.
(2) The term ‘‘independent states of the former
Soviet Union’’ has the meaning given the term in sec-
tion 3 of the FREEDOM Support Act (22 U.S.C.
5801).
(3) The term ‘‘highly enriched uranium’’ means
uranium enriched to 20 percent or more in the iso-
tope U–235.
Subtitle A—Domestic Preparedness
SEC. 1311. EMERGENCY RESPONSE ASSISTANCE PROGRAM.
(a) PROGRAM REQUIRED.—(1) The Secretary of De-
fense shall carry out a program to provide civilian person-
nel of Federal, State, and local agencies with training and
expert advice regarding emergency responses to a use or
threatened use of a weapon of mass destruction or related
materials.
(2) The President may designate the head of an agency
other than the Department of Defense to assume the respon-
sibility for carrying out the program on or after October
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1, 1999, and relieve the Secretary of Defense of that respon-
sibility upon the assumption of the responsibility by the
designated official.
(3) Hereafter in this section, the official responsible for
carrying out the program is referred to as the ‘‘lead offi-
cial’’.
(b) COORDINATION.—In carrying out the program, the
lead official shall coordinate with each of the following offi-
cials who is not serving as the lead official:
(1) The Director of the Federal Emergency Man-
agement Agency.
(2) The Secretary of Energy.
(3) The Secretary of Defense.
(4) The heads of any other Federal, State, and
local government agencies that have an expertise or
responsibilities relevant to emergency responses de-
scribed in subsection (a)(1).
(c) ELIGIBLE PARTICIPANTS.—The civilian personnel
eligible to receive assistance under the program are civilian
personnel of Federal, State, and local agencies who have
emergency preparedness responsibilities.
(d) INVOLVEMENT OF OTHER FEDERAL AGENCIES.—
(1) The lead official may use personnel and capabilities of
Federal agencies outside the agency of the lead official to
provide training and expert advice under the program.
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(2)(A) Personnel used under paragraph (1) shall be
personnel who have special skills relevant to the particular
assistance that the personnel are to provide.
(B) Capabilities used under paragraph (1) shall be ca-
pabilities that are especially relevant to the particular as-
sistance for which the capabilities are used.
(e) AVAILABLE
ASSISTANCE.—Assistance available
under this program shall include the following:
(1) Training in the use, operation, and mainte-
nance of equipment for—
(A) detecting a chemical or biological agent
or nuclear radiation;
(B) monitoring the presence of such an
agent or radiation;
(C) protecting emergency personnel and the
public; and
(D) decontamination.
(2) Establishment of a designated telephonic link
(commonly referred to as a ‘‘hot line’’) to a designated
source of relevant data and expert advice for the use
of State or local officials responding to emergencies
involving a weapon of mass destruction or related
materials.
(3) Use of the National Guard and other reserve
components for purposes authorized under this section
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that are specified by the lead official (with the con-
currence of the Secretary of Defense if the Secretary
is not the lead official).
(4) Loan of appropriate equipment.
(f) LIMITATIONS ON DEPARTMENT OF DEFENSE AS-
SISTANCE TO LAW ENFORCEMENT AGENCIES.—Assistance
provided by the Department of Defense to law enforcement
agencies under this section shall be provided under the au-
thority of, and subject to the restrictions provided in, chap-
ter 18 of title 10, United States Code.
(g) ADMINISTRATION OF DEPARTMENT OF DEFENSE
ASSISTANCE.—The Secretary of Defense shall designate an
official within the Department of Defense to serve as the
executive agent of the Secretary for the coordination of the
provision of Department of Defense assistance under this
section.
(h) FUNDING.—(1) Of the total amount authorized to
be appropriated under section 301, $35,000,000 is available
for the program required under this section.
(2) Of the amount available for the program pursuant
to paragraph (1), $10,500,000 is available for use by the
Secretary of Defense to assist the Surgeon General of the
United States in the establishment of metropolitan emer-
gency medical response teams (commonly referred to as
‘‘Metropolitan Medical Strike Force Teams’’) to provide
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medical services that are necessary or potentially necessary
by reason of a use or threatened use of a weapon of mass
destruction.
(3) The amount available for the program under para-
graph (1) is in addition to any other amounts authorized
to be appropriated for the program under section 301.
SEC. 1312. NUCLEAR, CHEMICAL, AND BIOLOGICAL EMER-
GENCY RESPONSE.
(a) DEPARTMENT OF DEFENSE.—The Secretary of De-
fense shall designate an official within the Department of
Defense as the executive agent for—
(1) the coordination of Department of Defense
assistance to Federal, State, and local officials in re-
sponding to threats involving biological or chemical
weapons or related materials or technologies, includ-
ing assistance in identifying, neutralizing, disman-
tling, and disposing of biological and chemical weap-
ons and related materials and technologies; and
(2) the coordination of Department of Defense
assistance to the Department of Energy in carrying
out that department’s responsibilities under sub-
section (b).
(b) DEPARTMENT OF ENERGY.—The Secretary of En-
ergy shall designate an official within the Department of
Energy as the executive agent for—
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(1) the coordination of Department of Energy
assistance to Federal, State, and local officials in re-
sponding to threats involving nuclear weapons or re-
lated materials or technologies, including assistance
in identifying, neutralizing, dismantling, and dispos-
ing of nuclear weapons and related materials and
technologies; and
(2) the coordination of Department of Energy
assistance to the Department of Defense in carrying
out that department’s responsibilities under sub-
section (a).
(c) FUNDING.—(1)(A) Of the total amount authorized
to be appropriated under section 301, $15,000,000 is avail-
able for providing assistance described in subsection (a).
(B) The amount available under subparagraph (A) for
providing assistance described in subsection (a) is in addi-
tion to any other amounts authorized to be appropriated
under section 301 for that purpose.
(2)(A) Of the total amount authorized to be appro-
priated under title XXXI, $15,000,000 is available for pro-
viding assistance described in subsection (b).
(B) The amount available under subparagraph (A) for
providing assistance is in addition to any other amounts
authorized to be appropriated under title XXXI for that
purpose.
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SEC. 1313. MILITARY ASSISTANCE TO CIVILIAN LAW EN-
FORCEMENT OFFICIALS IN EMERGENCY SITU-
ATIONS INVOLVING BIOLOGICAL OR CHEMI-
CAL WEAPONS.
(a) ASSISTANCE AUTHORIZED.—(1) The chapter 18 of
title 10, United States Code, is amended by adding at the
end the following:
‘‘§ 382. Emergency situations involving chemical or bi-
ological weapons of mass destruction
‘‘(a) IN GENERAL.—The Secretary of Defense, upon the
request of the Attorney General, may provide assistance in
support of Department of Justice activities relating to the
enforcement of section 175 or 2332c of title 18 during an
emergency situation involving a biological or chemical
weapon of mass destruction. Department of Defense re-
sources, including personnel of the Department of Defense,
may be used to provide such assistance if—
‘‘(1) the Secretary of Defense and the Attorney
General jointly determine that an emergency situa-
tion exists; and
‘‘(2) the Secretary of Defense determines that the
provision of such assistance will not adversely affect
the military preparedness of the United States.
‘‘(b) EMERGENCY SITUATIONS COVERED.—As used in
this section, the term ‘emergency situation involving a bio-
logical or chemical weapon of mass destruction’ means a
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circumstance involving a biological or chemical weapon of
mass destruction—
‘‘(1) that poses a serious threat to the interests
of the United States; and
‘‘(2) in which—
‘‘(A) civilian expertise and capabilities are
not readily available to provide the required as-
sistance to counter the threat immediately posed
by the weapon involved;
‘‘(B) special capabilities and expertise of
the Department of Defense are necessary and
critical to counter the threat posed by the weap-
on involved; and
‘‘(C) enforcement of section 175 or 2332c of
title 18 would be seriously impaired if the De-
partment of Defense assistance were not pro-
vided.
‘‘(c) FORMS OF ASSISTANCE.—The assistance referred
to in subsection (a) includes the operation of equipment (in-
cluding equipment made available under section 372 of this
title) to monitor, contain, disable, or dispose of the weapon
involved or elements of the weapon.
‘‘(d) REGULATIONS.—(1) The Secretary of Defense and
the Attorney General shall jointly issue regulations concern-
ing the types of assistance that may be provided under this
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section. Such regulations shall also describe the actions that
Department of Defense personnel may take in cir-
cumstances incident to the provision of assistance under
this section.
‘‘(2)(A) Except as provided in subparagraph (B), the
regulations may not authorize the following actions:
‘‘(i) Arrest.
‘‘(ii) Any direct participation in conducting a
search for or seizure of evidence related to a violation
of section 175 or 2332c of title 18.
‘‘(iii) Any direct participation in the collection
of intelligence for law enforcement purposes.
‘‘(B) The regulations may authorize an action de-
scribed in subparagraph (A) to be taken under the following
conditions:
‘‘(i) The action is considered necessary for the
immediate protection of human life, and civilian law
enforcement officials are not capable of taking the ac-
tion.
‘‘(ii) The action is otherwise authorized under
subsection (c) or under otherwise applicable law.
‘‘(e) REIMBURSEMENTS.—The Secretary of Defense
shall require reimbursement as a condition for providing
assistance under this section to the extent required under
section 377 of this title.
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‘‘(f) DELEGATIONS OF AUTHORITY.—(1) Except to the
extent otherwise provided by the Secretary of Defense, the
Deputy Secretary of Defense may exercise the authority of
the Secretary of Defense under this section. The Secretary
of Defense may delegate the Secretary’s authority under this
section only to an Under Secretary of Defense or an Assist-
ant Secretary of Defense and only if the Under Secretary
or Assistant Secretary to whom delegated has been des-
ignated by the Secretary to act for, and to exercise the gen-
eral powers of, the Secretary.
‘‘(2) Except to the extent otherwise provided by the At-
torney General, the Deputy Attorney General may exercise
the authority of the Attorney General under this section.
The Attorney General may delegate that authority only to
the Associate Attorney General or an Assistant Attorney
General and only if the Associate Attorney General or As-
sistant Attorney General to whom delegated has been des-
ignated by the Attorney General to act for, and to exercise
the general powers of, the Attorney General.
‘‘(g) RELATIONSHIP TO OTHER AUTHORITY.—Nothing
in this section shall be construed to restrict any executive
branch authority regarding use of members of the armed
forces or equipment of the Department of Defense that was
in effect before the date of the enactment of the National
Defense Authorization Act for Fiscal Year 1997.’’.
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(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following:
‘‘382. Emergency situations involving chemical or biological weapons of mass de-
struction.’’.
(b) CONFORMING AMENDMENT
TO CONDITION
FOR
PROVIDING
EQUIPMENT
AND
FACILITIES.—Section
372(b)(1) of title 10, United States Code, is amended by
adding at the end the following: ‘‘The requirement for a
determination that an item is not reasonably available from
another source does not apply to assistance provided under
section 382 of this title pursuant to a request of the Attorney
General for the assistance.’’.
(c) CONFORMING AMENDMENTS RELATING
TO AU-
THORITY TO REQUEST ASSISTANCE.—(1)(A) Chapter 10 of
title 18, United States Code, is amended by inserting after
section 175 the following:
‘‘§ 175a. Requests for military assistance to enforce
prohibition in certain emergencies
‘‘The Attorney General may request the Secretary of
Defense to provide assistance under section 382 of title 10
in support of Department of Justice activities relating to
the enforcement of section 175 of this title in an emergency
situation involving a biological weapon of mass destruction.
The authority to make such a request may be exercised by
another official of the Department of Justice in accordance
with section 382(f)(2) of title 10.’’.
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(B) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
175 the following:
‘‘175a. Requests for military assistance to enforce prohibition in certain emer-
gencies.’’.
(2)(A) The chapter 133B of title 18, United States
Code, that relates to terrorism is amended by inserting after
section 2332c the following:
‘‘§ 2332d. Requests for military assistance to enforce
prohibition in certain emergencies
‘‘The Attorney General may request the Secretary of
Defense to provide assistance under section 382 of title 10
in support of Department of Justice activities relating to
the enforcement of section 2332c of this title during an
emergency situation involving a chemical weapon of mass
destruction. The authority to make such a request may be
exercised by another official of the Department of Justice
in accordance with section 382(f)(2) of title 10.’’.
(B) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
2332c the following:
‘‘2332d. Requests for military assistance to enforce prohibition in certain emer-
gencies.’’.
(d) CIVILIAN EXPERTISE.—The President shall take
reasonable measures to reduce the reliance of civilian law
enforcement officials on Department of Defense resources to
counter the threat posed by the use or potential use of bio-
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logical and chemical weapons of mass destruction within
the United States. The measures shall include—
(1) actions to increase civilian law enforcement
expertise to counter such a threat; and
(2) actions to improve coordination between ci-
vilian law enforcement officials and other civilian
sources of expertise, within and outside the Federal
Government, to counter such a threat.
(e) REPORTS.—The President shall submit to Congress
the following reports:
(1) Not later than 90 days after the date of the
enactment of this Act, a report describing the respec-
tive policy functions and operational roles of Federal
agencies in countering the threat posed by the use or
potential use of biological and chemical weapons of
mass destruction within the United States.
(2) Not later than one year after such date, a re-
port describing—
(A) the actions planned to be taken to carry
out subsection (d); and
(B) the costs of such actions.
(3) Not later than three years after such date, a
report updating the information provided in the re-
ports submitted pursuant to paragraphs (1) and (2),
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including the measures taken pursuant to subsection
(d).
SEC. 1314. TESTING OF PREPAREDNESS FOR EMERGENCIES
INVOLVING NUCLEAR, RADIOLOGICAL, CHEM-
ICAL, AND BIOLOGICAL WEAPONS.
(a) EMERGENCIES INVOLVING CHEMICAL OR BIOLOGI-
CAL WEAPONS.—(1) The Secretary of Defense shall develop
and carry out a program for testing and improving the re-
sponses of Federal, State, and local agencies to emergencies
involving biological weapons and related materials and
emergencies involving chemical weapons and related mate-
rials.
(2) The program shall include exercises to be carried
out during each of five successive fiscal years beginning
with fiscal year 1997.
(3) In developing and carrying out the program, the
Secretary shall coordinate with the Director of the Federal
Bureau of Investigation, the Director of the Federal Emer-
gency Management Agency, the Secretary of Energy, and
the heads of any other Federal, State, and local government
agencies that have an expertise or responsibilities relevant
to emergencies described in paragraph (1).
(b) EMERGENCIES INVOLVING NUCLEAR AND RADIO-
LOGICAL WEAPONS.—(1) The Secretary of Energy shall de-
velop and carry out a program for testing and improving
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the responses of Federal, State, and local agencies to emer-
gencies involving nuclear and radiological weapons and re-
lated materials.
(2) The program shall include exercises to be carried
out during each of five successive fiscal years beginning
with fiscal year 1997.
(3) In developing and carrying out the program, the
Secretary shall coordinate with the Director of the Federal
Bureau of Investigation, the Director of the Federal Emer-
gency Management Agency, the Secretary of Defense, and
the heads of any other Federal, State, and local government
agencies that have an expertise or responsibilities relevant
to emergencies described in paragraph (1).
(c) ANNUAL REVISIONS OF PROGRAMS.—The official
responsible for carrying out a program developed under
subsection (a) or (b) shall revise the program not later than
June 1 in each fiscal year covered by the program. The revi-
sions shall include adjustments that the official determines
necessary or appropriate on the basis of the lessons learned
from the exercise or exercises carried out under the program
in the fiscal year, including lessons learned regarding co-
ordination problems and equipment deficiencies.
(d) OPTION TO TRANSFER RESPONSIBILITY.—(1) The
President may designate the head of an agency outside the
Department of Defense to assume the responsibility for car-
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rying out the program developed under subsection (a) begin-
ning on or after October 1, 1999, and relieve the Secretary
of Defense of that responsibility upon the assumption of the
responsibility by the designated official.
(2) The President may designate the head of an agency
outside the Department of Energy to assume the responsibil-
ity for carrying out the program developed under subsection
(b) beginning on or after October 1, 1999, and relieve the
Secretary of Energy of that responsibility upon the assump-
tion of the responsibility by the designated official.
(e) FUNDING.—(1) Of the total amount authorized to
be appropriated under section 301, $15,000,000 is available
for the development and execution of the programs required
by this section, including the participation of State and
local agencies in exercises carried out under the programs.
(2) The amount available under paragraph (1) for the
development and execution of programs referred to in that
paragraph is in addition to any other amounts authorized
to be appropriated under section 301 for such purposes.
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Subtitle B—Interdiction of Weapons
of Mass Destruction and Related
Materials
SEC. 1321. UNITED STATES BORDER SECURITY.
(a) PROCUREMENT OF DETECTION EQUIPMENT.—(1)
Of the amount authorized to be appropriated by section
301, $15,000,000 is available for the procurement of—
(A) equipment capable of detecting the movement
of weapons of mass destruction and related materials
into the United States;
(B) equipment capable of interdicting the move-
ment of weapons of mass destruction and related ma-
terials into the United States; and
(C) materials and technologies related to use of
equipment described in subparagraph (A) or (B).
(2) The amount available under paragraph (1) for the
procurement of items referred to in that paragraph is in
addition to any other amounts authorized to be appro-
priated under section 301 for such purpose.
(b) AVAILABILITY OF EQUIPMENT TO COMMISSIONER
OF CUSTOMS.—To the extent authorized under chapter 18
of title 10, United States Code, the Secretary of Defense
may make equipment of the Department of Defense de-
scribed in subsection (a), and related materials and tech-
nologies, available to the Commissioner of Customs for use
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in detecting and interdicting the movement of weapons of
mass destruction into the United States.
SEC. 1322. NONPROLIFERATION AND COUNTER-
PROLIFERATION RESEARCH AND DEVELOPMENT.
(a) ACTIVITIES AUTHORIZED.—The Secretary of De-
fense and the Secretary of Energy are each authorized to
carry out research on and development of technical means
for detecting the presence, transportation, production, and
use of weapons of mass destruction and technologies and
materials that are precursors of weapons of mass destruc-
tion.
(b) FUNDING.—(1)(A) There is authorized to be appro-
priated for the Department of Defense for fiscal year 1997,
$10,000,000 for research and development carried out by
the Secretary of Defense pursuant to subsection (a).
(B) The amount authorized to be appropriated for re-
search and development under subparagraph (A) is in addi-
tion any other amounts that are authorized to be appro-
priated under this Act for such research and development,
including funds authorized to be appropriated for research
and development relating to nonproliferation of weapons of
mass destruction.
(2)(A) Of the total amount authorized to be appro-
priated under title XXXI, $19,000,000 is available for re-
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search and development carried out by the Secretary of En-
ergy pursuant to subsection (a).
(B) The amount available under subparagraph (B) is
in addition to any other amount authorized to be appro-
priated under title XXXI for such research and develop-
ment.
SEC. 1323. INTERNATIONAL EMERGENCY ECONOMIC POW-
ERS ACT.
Section 203 of the International Emergency Economic
Powers Act (50 U.S.C. 1702) is amended—
(1) in subsection (a)(1)(B), by striking out ‘‘im-
portation or exportation of,’’ and inserting in lieu
thereof ‘‘importation, exportation, or attempted im-
portation or exportation of,’’; and
(2) in subsection (b)(3), by striking out ‘‘impor-
tation from any country, or the exportation’’ and in-
serting in lieu thereof ‘‘importation or attempted im-
portation from any country, or the exportation or at-
tempted exportation’’.
SEC. 1324. CRIMINAL PENALTIES.
It is the sense of Congress that—
(1) the sentencing guidelines prescribed by the
United States Sentencing Commission for the offenses
of importation, attempted importation, exportation,
and attempted exportation of nuclear, biological, and
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chemical weapons materials constitute inadequate
punishment for such offenses; and
(2) Congress urges the United States Sentencing
Commission to revise the relevant sentencing guide-
lines to provide for increased penalties for offenses re-
lating to importation, attempted importation, expor-
tation, and attempted exportation of nuclear, biologi-
cal, or chemical weapons or related materials or tech-
nologies under—
(A) section 11 of the Export Administration
Act of 1979 (50 U.S.C. App. 2410);
(B) sections 38 and 40 the Arms Export
Control Act (22 U.S.C. 2778 and 2780);
(C) the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.); and
(D) section 309(c) of the Nuclear Non-Pro-
liferation Act of 1978 (22 U.S.C. 2156a(c).
SEC. 1325. INTERNATIONAL BORDER SECURITY.
(a) SECRETARY OF DEFENSE RESPONSIBILITY.—The
Secretary of Defense, in consultation and cooperation with
the Commissioner of Customs, shall carry out programs for
assisting customs officials and border guard officials in the
independent states of the former Soviet Union, the Baltic
states, and other countries of Eastern Europe in preventing
unauthorized transfer and transportation of nuclear, bio-
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priated under section 301, $15,000,000 is available for the
program under subsection (b).
(B) The amount available under subparagraph (A) for
the industrial partnership program of the Department of
Defense established pursuant to subsection (b) is in addition
to the amount authorized to be appropriated for Coopera-
tive Threat Reduction programs under section 301.
(2) It is the sense of Congress that the Secretary of
Defense should transfer to the Defense Enterprise Fund,
$20,000,000 out of the funds appropriated for Cooperative
Threat Reduction programs for fiscal years before fiscal
year 1997 that remain available for obligation.
SEC. 1335. LAB-TO-LAB PROGRAM TO IMPROVE THE SAFETY
AND SECURITY OF NUCLEAR MATERIALS.
(a) PROGRAM EXPANSION AUTHORIZED.—The Sec-
retary of Energy is authorized to expand the Lab-to-Lab
program of the Department of Energy to improve the safety
and security of nuclear materials in the independent states
of the former Soviet Union where the Lab-to-Lab program
is not being carried out on the date of the enactment of
this Act.
(b) FUNDING.—(1) Of the total amount authorized to
be appropriated under title XXXI, $20,000,000 is available
for expanding the Lab-to-Lab program as authorized under
subsection (a).