Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘National Defense Au-
thorization Act for Fiscal Year 1998’’.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF
CONTENTS.
(a) DIVISIONS.—This Act is organized into three divi-
sions as follows:
(1) Division A—Department of Defense Au-
thorizations.
(2) Division B—Military Construction Author-
izations.
(3) Division C—Department of Energy Na-
tional Security Authorizations and Other Authoriza-
tions.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
DIVISION A—DEPARTMENT OF DEFENSE
AUTHORIZATIONS
TITLE I—PROCUREMENT
Subtitle A—Authorization of Appropriations
Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical Demilitarization Program.
Sec. 108. Defense health programs.
Sec. 109. Defense Export Loan Guarantee Program.
Subtitle B—Other Matters
Sec. 121. Limitation on obligation of funds for the Seawolf Submarine pro-
gram.
Sec. 122. Report on annual budget submission regarding the reserve compo-
nents.
TITLE II—RESEARCH, DEVELOPMENT, TEST, AND
EVALUATION
Subtitle A—Authorization of Appropriations
Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology program.
Subtitle B—Program Requirements, Restrictions, and
Limitations
Sec. 211. Manufacturing technology program.
Sec. 212. Report on Strategic Environmental Research and Development Pro-
gram.
Sec. 213. Tactical unmanned aerial vehicles.
Sec. 214. Revisions to membership of and appointment authority for National
Ocean Research Leadership Council.
Sec. 215. Maintenance and repair of real property at Air Force installations.
Sec. 216. Expansion of eligibility for Defense Experimental Program to Stimu-
late Competitive Research.
Sec. 217. Bioassay testing of veterans exposed to ionizing radiation during mili-
tary service.
Sec. 218. Comanche program.
Sec. 219. Land attack standard missile.
Sec. 220. Report on operational field assessments program.
Subtitle C—Ballistic Missile Defense Programs
Sec. 231. Budgetary treatment of amounts requested for procurement for Bal-
listic Missile Defense programs.
Sec. 232. Cooperative ballistic missile defense program.
Sec. 233. Deployment dates for core theater missile defense programs
Sec. 234. Annual report on threat posed to the United States by weapons of
mass destruction, ballistic missiles, and cruise missiles.
Sec. 235. Director of Ballistic Missile Defense Organization.
Sec. 236. Tactical high energy laser program.
TITLE III—OPERATION AND MAINTENANCE
Subtitle A—Authorization of Appropriations
Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Refurbishment and installation of air search radar.
Sec. 306. Refurbishment of M1–A1 tanks.
Sec. 307. Procurement and electronic commerce technical assistance program.
Subtitle B—Military Readiness Issues
Sec. 311. Expansion of scope of quarterly readiness reports.
Sec. 312. Limitation on reallocation of funds within operation and maintenance
appropriations.
Sec. 313. Operation of prepositioned fleet, National Training Center, Fort
Irwin, California.
Sec. 314. Prohibition of implementation of tiered readiness system.
Sec. 315. Reports on transfers from high-priority readiness appropriations.
Sec. 316. Report on Chairman, Joint Chiefs of Staff Exercise Program and
Partnership for Peace program.
Sec. 317. Quarterly reports on execution of operation and maintenance appro-
priations.
Subtitle C—Civilian Personnel
Sec. 321. Pay practices when overseas teachers transfer to general schedule po-
sitions.
Sec. 322. Use of approved fire-safe accommodations by Government employees
on official business.
Sec. 323. Veterans’ preference status for certain veterans who served on active
duty during the Persian Gulf War.
Subtitle D—Depot-Level Activities
Sec. 331. Extension of authority for aviation depots and naval shipyards to en-
gage in defense-related production and services.
Sec. 332. Exclusion of certain large maintenance and repair projects from per-
centage limitation on contracting for depot-level maintenance.
Sec. 333. Restrictions on contracts for performance of depot-level maintenance
and repair at certain facilities.
Sec. 334. Core logistics functions of Department of Defense.
Sec. 335. Centers of Industrial and Technical Excellence.
Sec. 336. Personnel reductions, Army depots participating in Army Workload
and Performance System.
Subtitle E—Environmental Provisions
Sec. 341. Revision of membership terms for Strategic Environmental Research
and Development Program scientific advisory board.
Sec. 342. Amendments to authority to enter into agreements with other agen-
cies in support of environmental technology certification.
Sec. 343. Authorization to pay negotiated settlement for environmental cleanup
at former Department of Defense sites in Canada.
Sec. 344. Modifications of authority to store and dispose of nondefense toxic
and hazardous materials.
Sec. 345. Revision of report requirement for Navy program to monitor ecologi-
cal effects of organotin.
Sec. 346. Partnerships for investment in innovative environmental technologies.
Sec. 347. Pilot program to test an alternative technology for eliminating solid
and liquid waste emissions during ship operations.
Subtitle F—Commissaries and Nonappropriated Fund
Instrumentalities
Sec. 361. Reorganization of laws regarding commissaries and exchanges and
other morale, welfare, and recreation activities.
Sec. 362. Merchandise and pricing requirements for commissary stores.
Sec. 363. Limitation on noncompetitive procurement of brand-name commercial
items for resale in commissary stores.
Sec. 364. Transfer of jurisdiction over exchange, commissary, and morale, wel-
fare, and recreation activities to Under Secretary of Defense
(Comptroller).
Sec. 365. Public and private partnerships to benefit morale, welfare, and recre-
ation activities.
Sec. 366. Treatment of certain amounts received by Defense Commissary Agen-
cy.
Sec. 367. Authorized use of appropriated funds for relocation of Navy Ex-
change Service Command.
Subtitle G—Other Matters
Sec. 371. Assistance to local educational agencies that benefit dependents of
members of the Armed Forces and Department of Defense ci-
vilian employees.
Sec. 372. Continuation of Operation Mongoose.
Sec. 373. Inclusion of Air Force depot maintenance as operation and mainte-
nance budget activity group.
Sec. 374. Programs to commemorate 50th anniversary of Marshall Plan and
Korean conflict.
Sec. 375. Prohibition on use of Special Operations Command budget for base
operation support.
Sec. 376. Continuation and expansion of demonstration program to identify
overpayments made to vendors.
Sec. 377. Applicability of Federal printing requirements to Defense Automated
Printing Service.
Sec. 378. Base operations support for military installations on Guam.
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS
Subtitle A—Active Forces
Sec. 401. End strengths for active forces.
Subtitle B—Reserve Forces
Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for reserves on active duty in support of the Reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Increase in number of members in certain grades authorized to serve
on active duty in support of the reserves.
Subtitle C—Authorization of Appropriations
Sec. 421. Authorization of appropriations for military personnel.
TITLE V—MILITARY PERSONNEL POLICY
Subtitle A—Officer Personnel Policy
Sec. 501. Limitation on number of general and flag officers who may serve in
positions outside their own service.
Sec. 502. Exclusion of certain retired officers from limitation on period of recall
to active duty.
Sec. 503. Clarification of officers eligible for consideration by selection boards.
Sec. 504. Authority to defer mandatory retirement for age of officers serving
as chaplains.
Subtitle B—Reserve Component Matters
Sec. 511. Individual Ready Reserve activation authority.
Sec. 512. Termination of Mobilization Income Insurance Program.
Sec. 513. Correction of inequities in medical and dental care and death and dis-
ability benefits for reserve members who incur or aggravate an
illness in the line of duty.
Sec. 514. Time-in-grade requirements for reserve commissioned officers retired
during force drawdown period.
Sec. 515. Authority to permit non-unit assigned officers to be considered by va-
cancy promotion board to general officer grades.
Sec. 516. Grade requirement for officers eligible to serve on involuntary separa-
tion boards.
Sec. 517. Limitation on use of Air Force Reserve AGR personnel for Air Force
base security functions.
Subtitle C—Military Technicians
Sec. 521. Authority to retain on the reserve active-status list until age 60 mili-
tary technicians in the grade of brigadier general.
Sec. 522. Military technicians (dual status).
Sec. 523. Non-dual status military technicians.
Sec. 524. Report of feasibility and desirability of conversion of AGR personnel
to military technicians (dual-status).
Subtitle D—Measures To Improve Recruit Quality and Reduce
Recruit Attrition
Sec. 531. Reform of military recruiting systems.
Sec. 532. Improvements in medical prescreening of applicants for military serv-
ice.
Sec. 533. Improvements in physical fitness of recruits.
Subtitle E—Military Education and Training
Sec. 541. Independent panel to review military basic training.
Sec. 542. Reform of Army drill sergeant selection and training process.
Sec. 543. Requirement for candidates for admission to United States Naval
Academy to take oath of allegiance.
Sec. 544. Reimbursement of expenses incurred for instruction at service acad-
emies of persons from foreign countries.
Sec. 545. United States Naval Postgraduate School.
Sec. 546. Air Force Academy cadet foreign exchange program.
Sec. 547. Training in human relations matters for Army drill sergeant trainees.
Sec. 548. Study of feasibility of gender-segregated basic training.
Subtitle F—Military Decorations and Awards
Sec. 551. Study of new decorations for injury or death in line of duty.
Sec. 552. Purple heart to be awarded only to members of the armed forces.
Sec. 553. Eligibility for Armed Forces Expeditionary Medal for participation in
Operation Joint Endeavor or Operation Joint Guard.
Sec. 554. Waiver of time limitations for award of certain decorations to speci-
fied persons.
Subtitle G—Other Matters
Sec. 561. Suspension of temporary early retirement authority.
Sec. 562. Treatment of educational accomplishments of National Guard Chal-
lenge Program participants.
Sec. 563. Authority for personnel to participate in management of certain non-
Federal entities.
Sec. 564. Crew requirements of WC–130J aircraft.
Sec. 565. Comptroller General study of Department of Defense civil military
programs.
Sec. 566. Treatment of participation of members in Department of Defense
civil military programs.
Sec. 567. Continuation of support to senior military colleges.
Sec. 568. Improvement of missing persons authorities applicable to Department
of Defense.
Sec. 569. Establishment of sentence of confinement for life without eligibility
for parole.
Sec. 570. Limitation on appeal of denial of parole for offenders serving life sen-
tence.
Sec. 571. Establishment of Public Affairs Branch in the Army.
Sec. 572. Report on making United States nationals eligible for participation
in Senior Reserve Officers’ Training Corps.
Sec. 573. Community College of the Air Force.
TITLE VI—COMPENSATION AND OTHER PERSONNEL
BENEFITS
Subtitle A—Pay and Allowances
Sec. 601. Increase in basic pay for fiscal year 1998.
Sec. 602. Annual adjustment of basic pay and protection of member’s total
compensation while performing certain duty.
Sec. 603. Use of food cost information to determine basic allowance for subsist-
ence.
Sec. 604. Consolidation of basic allowance for quarters, variable housing allow-
ance, and overseas housing allowances.
Subtitle B—Bonuses and Special and Incentive Pays
Sec. 611. One-year extension of certain bonuses and special pay authorities for
reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay authorities for
nurse officer candidates, registered nurses, and nurse anes-
thetists.
Sec. 613. One-year extension of authorities relating to payment of other bo-
nuses and special pays.
Sec. 614. Increase in minimum monthly rate of hazardous duty incentive pay
for certain members.
Sec. 615. Availability of multiyear retention bonus for dental officers.
Sec. 616. Increase in variable and additional special pays for certain dental of-
ficers.
Sec. 617. Special pay for duty at designated hardship duty locations.
Sec. 618. Selected Reserve reenlistment bonus.
Sec. 619. Selected Reserve enlistment bonus for former enlisted members.
Sec. 620. Special pay or bonuses for enlisted members extending tours of duty
overseas.
Sec. 621. Increase in amount of family separation allowance.
Sec. 622. Change in requirements for Ready Reserve muster duty allowance.
Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard Re-
serve.
Subtitle C—Travel and Transportation Allowances
Sec. 631. Travel and transportation allowances for dependents of member sen-
tenced by court-martial.
Sec. 632. Dislocation allowance.
Subtitle D—Retired Pay, Survivor Benefits, and Related
Matters
Sec. 641. Time in which certain changes in beneficiary under Survivor Benefit
Plan may be made.
Subtitle E—Other Matters
Sec. 651. Definition of sea duty for purposes of career sea pay.
Sec. 652. Loan repayment program for commissioned officers in certain health
professions.
Sec. 653. Conformance of NOAA commissioned officers separation pay to sepa-
ration pay for members of other uniformed services.
Sec. 654. Reimbursement of Public Health Service officers for adoption ex-
penses.
Sec. 655. Payment of back quarters and subsistence allowances to World War
II veterans who served as guerrilla fighters in the Philippines.
Sec. 656. Space available travel for members of Selected Reserve.
Sec. 657. Study on military personnel at, near, or below the poverty line.
Sec. 658. Implementation of Department of Defense supplemental food pro-
gram for military personnel outside the United States.
TITLE VII—HEALTH CARE PROVISIONS
Subtitle A—Health Care Services
Sec. 701. Expansion of retiree dental insurance plan to include surviving spouse
and child dependents of certain deceased members.
Sec. 702. Provision of prosthetic devices to covered beneficiaries.
Subtitle B—TRICARE Program
Sec. 711. Addition of definition of TRICARE program to title 10.
Sec. 712. Plan for expansion of managed care option of TRICARE program.
Subtitle C—Uniformed Services Treatment Facilities
Sec. 721. Implementation of designated provider agreements for Uniformed
Services Treatment Facilities.
Sec. 722. Limitation on total payments.
Sec. 723. Continued acquisition of reduced-cost drugs.
Subtitle D—Other Changes to Existing Laws Regarding
Health Care Management
Sec. 731. Waiver or reduction of copayments under overseas dental program.
Sec. 732. Premium collection requirements for medical and dental insurance
programs.
Sec. 733. Consistency between CHAMPUS and Medicare in payment rates for
services.
Sec. 734. Use of personal services contracts for provision of health care services
and legal protection for providers.
Sec. 735. Portability of State licenses for Department of Defense health care
professionals.
Sec. 736. Standard form and requirements regarding claims for payment for
services.
Sec. 737. Medical personnel conscience clause.
Subtitle E—Other Matters
Sec. 741. Continued admission of civilians as students in physician assistant
training program of Army Medical Department.
Sec. 742. Emergency health care in connection with overseas activities of On-
Site Inspection Agency of Department of Defense.
Sec. 743. Comptroller General study of adequacy and effect of maximum allow-
able charges for physicians under CHAMPUS.
Sec. 744. Comptroller General study of Department of Defense pharmacy pro-
grams.
Sec. 745. Comptroller General study of Navy graduate medical education pro-
gram.
Sec. 746. Study of expansion of pharmaceuticals by mail program to include
additional Medicare-eligible covered beneficiaries.
Sec. 747. Comptroller General study of requirement for military medical facili-
ties in National Capital region.
Subtitle F—Persian Gulf Illness
Sec. 751. Definitions.
Sec. 752. Plan for health care services for Persian Gulf veterans.
Sec. 753. Comptroller General study of revised disability criteria for physical
evaluation boards.
Sec. 754. Improved medical tracking system for members deployed overseas in
contingency or combat operations.
Sec. 755. Report on plans to track location of members in a theater of oper-
ations.
Sec. 756. Report on plans to improve detection and monitoring of chemical, bio-
logical, and similar hazards in a theater of operations.
Sec. 757. Notice of use of investigational new drugs.
Sec. 758. Report on effectiveness of research efforts regarding Gulf War ill-
nesses.
Sec. 759. Persian Gulf illness clinical trials program.
Sec. 760. Sense of the Congress concerning Gulf War illness.
TITLE VIII—ACQUISITION POLICY, ACQUISITION
MANAGEMENT, AND RELATED MATTERS
Subtitle A—Acquisition Policy
Sec. 801. Case-by-case waivers of domestic source limitations.
Sec. 802. Expansion of authority to enter into contracts crossing fiscal years
to all severable services contracts not exceeding a year.
Sec. 803. Clarification of vesting of title under contracts.
Sec. 804. Exclusion of disaster relief, humanitarian, and peacekeeping oper-
ations from restrictions on use of undefinitized contract ac-
tions.
Sec. 805. Limitation and report on payment of restructuring costs under de-
fense contracts.
Sec. 806. Authority relating to purchase of certain vehicles.
Sec. 807. Multiyear procurement contracts.
Sec. 808. Domestic source limitation amendments.
Sec. 809. Repeal of expiration of domestic source limitation for certain naval
vessel propellers.
Sec. 810. Audit of procurement of goods by military installations in the United
States.
Subtitle B—Other Matters
Sec. 821. Repeal of certain acquisition reports and requirements.
Sec. 822. Extension of authority for use of test and evaluation installations by
commercial entities.
Sec. 823. Requirement to develop and maintain list of firms not eligible for de-
fense contracts.
Sec. 824. Allowability of costs of employee stock ownership plans.
Sec. 825. Expansion of personnel eligible to participate in demonstration
project relating to acquisition workforce.
Sec. 826. Time for submission of annual report relating to Buy American Act.
TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION
AND MANAGEMENT
Sec. 901. Limitation on operation and support funds for the Office of the Sec-
retary of Defense.
Sec. 902. Components of National Defense University.
Sec. 903. Authorization for the Marine Corps University to employ civilian pro-
fessors.
Sec. 904. Center for the Study of Chinese Military Affairs.
Sec. 905. White House Communications Agency.
Sec. 906. Revision to required frequency for provision of policy guidance for
contingency plans.
Sec. 907. Termination of the Defense Airborne Reconnaissance Office.
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of unauthorized fiscal year 1997 defense ap-
propriations.
Sec. 1004. Authorization of supplemental appropriations for fiscal year 1997.
Sec. 1005. Increase in fiscal year 1996 transfer authority.
Sec. 1006. Fisher House trust funds.
Sec. 1007. Flexibility in financing closure of certain outstanding contracts for
which a small final payment is due.
Sec. 1008. United States Man and the Biosphere Program limitation.
Subtitle B—Naval Vessels and Shipyards
Sec. 1021. Relationship of certain laws to disposal of vessels for export from
the Naval Vessel Register and the National Defense Reserve
Fleet.
Sec. 1022. Authority to enter into a long-term charter for a vessel in support
of the Surveillance Towed-Array Sensor (SURTASS) program.
Sec. 1023. Transfer of two specified obsolete tugboats of the Army.
Sec. 1024. Naming of a DDG–51 class destroyer the U.S.S. Thomas F.
Connolly.
Sec. 1025. Congressional review period with respect to transfer of the ex-U.S.S.
Midway (CV–41).
Subtitle C—Counter-Drug Activities
Sec. 1031. Prohibition on use of National Guard for civil-military activities
under State drug interdiction and counter-drug activities plan.
Sec. 1032. Assignment of Department of Defense personnel to assist Immigra-
tion and Naturalization Service and Customs Service.
Sec. 1033. Annual report on development and deployment of narcotics detection
technologies.
Subtitle D—Miscellaneous Report Requirements and Repeals
Sec. 1041. Repeal of miscellaneous obsolete reports required by prior defense
authorization Acts.
Sec. 1042. Repeal of annual report requirement relating to training of special
operations forces with friendly foreign forces.
Sec. 1043. Report on anti-terrorism activities.
Subtitle E—Other Matters
Sec. 1051. Authority for special agents of the Defense Criminal Investigative
Service to execute warrants and make arrests.
Sec. 1052. Study of investigative practices of military criminal investigative or-
ganizations relating to sex crimes.
Sec. 1053. Technical and clerical amendments.
Sec. 1054. Display of POW/MIA flag.
Sec. 1055. Certification required before observance of moratorium on use by
Armed Forces of antipersonnel landmines.
Sec. 1056. Protection of safety-related information voluntarily provided by air
carriers.
Sec. 1057. National Guard Challenge Program to create opportunities for civil-
ian youth.
Sec. 1058. Lease of non-excess personal property of the military departments.
Sec. 1059. Commendation of members of the Armed Forces and Government
civilian personnel who served during the Cold War.
Sec. 1060. Prohibition of performance of military honors upon death of persons
convicted of capital crimes.
Sec. 1061. Study of United States capacitor and resistor industries.
Sec. 1062. Sense of the Congress on deployment of United States Armed
Forces abroad for environmental preservation activities.
Sec. 1063. Study of transfer of Modular Airborne Fire Fighting System.
Sec. 1064. Oversight of counter-terrorism and anti-terrorism programs and ac-
tivities of the United States.
Sec. 1065. Armament Retooling and Manufacturing Support Initiative.
TITLE XI—COOPERATIVE THREAT REDUCTION WITH
STATES OF FORMER SOVIET UNION
Sec. 1101. Specification of Cooperative Threat Reduction programs.
Sec. 1102. Fiscal year 1998 funding allocations.
Sec. 1103. Prohibition on use of funds for specified purposes.
Sec. 1104. Limitation on use of funds until specified reports are submitted.
Sec. 1105. Limitation on use of funds until submission of certification.
Sec. 1106. Use of funds for chemical weapons destruction facility.
Sec. 1107. Limitation on use of funds for storage facility for Russian fissile
material.
Sec. 1108. Limitation on use of funds for weapons storage security.
Sec. 1109. Report to Congress on issues regarding payment of taxes or duties
on assistance provided to Russia under Cooperative Threat Re-
duction programs.
Sec. 1110. Limitation on obligation of funds for a specified period.
Sec. 1111. Availability of funds.
TITLE XII—MATTERS RELATING TO OTHER NATIONS
Subtitle A—General Matters
Sec. 1201. Reports to Congress relating to United States forces in Bosnia.
Sec. 1202. One-year extension of counterproliferation authorities.
Sec. 1203. Report on future military capabilities and strategy of the People’s
Republic of China.
Sec. 1204. Temporary use of general purpose vehicles and nonlethal military
equipment under acquisition and cross servicing agreements.
Sec. 1205. Defense burdensharing.
Sec. 1206. Presidential certifications concerning detargeting of Russian inter-
continental ballistic missiles.
Sec. 1207. Limitation on payments for cost of NATO expansion.
Sec. 1208. Sense of the Congress relating to level of United States military per-
sonnel in the Asia and Pacific region.
Sec. 1209. Sense of the Congress on need for Russian openness on the
Yamantau Mountain Project.
Sec. 1210. United States Armed Forces in Bosnia.
Sec. 1211. Limitation on support for law enforcement activities in Bosnia.
Sec. 1212. Presidential report on political and military conditions in Bosnia.
Subtitle B—Matters Relating To Prevention of Technology
Diversion
Sec. 1231. Findings.
Sec. 1232. Export approvals for supercomputers.
Sec. 1233. Report on exports of supercomputers.
Sec. 1234. Post-shipment verification of export of supercomputers.
TITLE XIII—DEFENSE PERSONNEL REFORMS
Sec. 1301. Reduction in personnel assigned to management headquaters and
headquarters support activities.
Sec. 1302. Additional reduction in defense acquisition workforce.
Sec. 1303. Availability of funds for separation pay for defense acquisition per-
sonnel.
Sec. 1304. Personnel reductions in United States Transportation Command.
TITLE XIV—DEFENSE BUSINESS PRACTICIES REFORMS
Subtitle A—Competitive Procurement Requirements
Sec. 1401. Competitive procurement of finance and accounting services.
Sec. 1402. Competitive procurement of services to dispose of surplus defense
property.
Sec. 1403. Competitive procurement of functions performed by Defense Infor-
mation Systems Agency.
Sec. 1404. Competitive procurement of printing and duplication services.
Sec. 1405. Competitive procurement of certain ophthalmic services.
Sec. 1406. Competitive procurement of commercial and industrial type func-
tions by defense agencies.
Subtitle B—Reform of Conversion Process
Sec. 1411. Development of standard forms regarding performance work state-
ment and request for proposal for conversion of certain oper-
ational functions of military installations.
Sec. 1412. Study and notification requirement for conversion of commercial and
industrial type functions to contractor performance.
Sec. 1413. Collection and retention of cost information data on contracted out
services and functions.
Subtitle C—Other Reforms
Sec. 1421. Reduction in overhead costs of inventory control points.
Sec. 1422. Consolidation of procurement technical assistance and electronic
commerce technical assistance.
Sec. 1423. Permanent authority regarding conveyance of utility systems.
TITLE XV—MISCELLANEOUS ADDITIONAL DEFENSE
REFORMS
Sec. 1501. Long-term charter contracts for acquisition of auxiliary vessels for
the Department of Defense.
Sec. 1502. Fiber-optics based telecommunications linkage of military installa-
tions.
Sec. 1503. Repeal of requirement for contractor guarantees on major weapons
systems.
Sec. 1504. Requirement relating to micro-purchases of commercial items.
Sec. 1505. Availability of simplified procedures to commercial item procure-
ments.
Sec. 1506. Termination of the Armed Services Patent Advisory Board.
Sec. 1507. Coordination of Department of Defense criminal investigations and
audits.
Sec. 1508. Department of Defense boards, commissions, and advisory commit-
tees.
Sec. 1509. Advances for payment of public services.
TITLE XVI—COMMISSION ON DEFENSE ORGANIZATION
AND STREAMLINING
Sec. 1601. Establishment of commission.
Sec. 1602. Duties of commission.
Sec. 1603. Reports.
Sec. 1604. Powers.
Sec. 1605. Commission procedures.
Sec. 1606. Personnel matters.
Sec. 1607. Miscellaneous administrative provisions.
Sec. 1608. Funding.
Sec. 1609. Termination of the commission.
DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS
Sec. 2001. Short title.
TITLE XXI—ARMY
Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Correction in authorized uses of funds, Fort Irwin, California.
TITLE XXII—NAVY
Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization of military construction project at Naval Air Station,
Pascagoula, Mississippi, for which funds have been appro-
priated.
TITLE XXIII—AIR FORCE
Sec. 2301. Authorized Air Force construction and land acquisition projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authorization of military construction project at McConnell Air
Force Base, Kansas, for which funds have been appropriated.
TITLE XXIV—DEFENSE AGENCIES
Sec. 2401. Authorized Defense Agencies construction and land acquisition
projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Correction in authorized uses of funds, McClellan Air Force Base,
California.
Sec. 2407. Modification of authority to carry out fiscal year 1995 projects.
TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION
SECURITY INVESTMENT PROGRAM
Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.
TITLE XXVI—GUARD AND RESERVE FORCES FACILITIES
Sec. 2601. Authorized Guard and Reserve construction and land acquisition
projects.
Sec. 2602. Authorization of military construction projects for which funds have
been appropriated.
Sec. 2603. Army Reserve construction project, Salt Lake City, Utah.
TITLE XXVII—EXPIRATION AND EXTENSION OF
AUTHORIZATIONS
Sec. 2701. Expiration of authorizations and amounts required to be specified
by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1995 projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1994 projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1993 projects.
Sec. 2705. Extension of authorizations of certain fiscal year 1992 projects.
Sec. 2706. Extension of availability of funds for construction of Over-the-Hori-
zon Radar in Puerto Rico.
Sec. 2707. Effective date.
TITLE XXVIII—GENERAL PROVISIONS
Subtitle A—Military Construction Program and Military
Family Housing Changes
Sec. 2801. Use of mobility enhancement funds for unspecified minor construc-
tion.
Sec. 2802. Limitation on use of operation and maintenance funds for facility
repair projects.
Sec. 2803. Leasing of military family housing, United States Southern Com-
mand, Miami, Florida.
Sec. 2804. Use of financial incentives provided as part of energy savings and
water conservation activities.
Sec. 2805. Congressional notification requirements regarding use of Depart-
ment of Defense housing funds for investments in nongovern-
mental entities.
Subtitle B—Real Property And Facilities Administration
Sec. 2811. Increase in ceiling for minor land acquisition projects.
Sec. 2812. Administrative expenses for certain real property transactions.
Sec. 2813. Disposition of proceeds from sale of Air Force Plant 78, Brigham
City, Utah.
Subtitle C—Defense Base Closure and Realignment
Sec. 2821. Consideration of military installations as sites for new Federal facili-
ties.
Sec. 2822. Prohibition against conveyance of property at military installations
to State-owned shipping companies.
Subtitle D—Land Conveyances
PART I—ARMY CONVEYANCES
Sec. 2831. Land conveyance, James T. Coker Army Reserve Center, Durant,
Oklahoma.
Sec. 2832. Land conveyance, Fort A. P. Hill, Virginia.
Sec. 2833. Expansion of land conveyance, Indiana Army Ammunition Plant,
Charlestown, Indiana.
Sec. 2834. Modification of land conveyance, Lompoc, California.
Sec. 2835. Modification of land conveyance, Rocky Mountain Arsenal, Colorado.
Sec. 2836. Correction of land conveyance authority, Army Reserve Center, An-
derson, South Carolina.
Sec. 2837. Land conveyance, Fort Bragg, North Carolina.
Sec. 2838. Land conveyance, Gibson Army Reserve Center, Chicago, Illinois.
Sec. 2839. Land conveyance, Fort Dix, New Jersey.
PART II—NAVY CONVEYANCES
Sec. 2851. Correction of lease authority, Naval Air Station, Meridian, Mis-
sissippi.
PART III—AIR FORCE CONVEYANCES
Sec. 2861. Land transfer, Eglin Air Force Base, Florida.
Sec. 2862. Study of land exchange options, Shaw Air Force Base, South Caro-
lina.
Sec. 2863. Land conveyance, March Air Force Base, California.
Sec. 2864. Land conveyance, Ellsworth Air Force Base, South Dakota.
Subtitle E—Other Matters
Sec. 2881. Repeal of requirement to operate Naval Academy dairy farm.
Sec. 2882. Long-term lease of property, Naples Italy.
Sec. 2883. Designation of military family housing at Lackland Air Force Base,
Texas, in honor of Frank Tejeda, a former Member of the
House of Representatives.
TITLE XXIX—SIKES ACT IMPROVEMENT
Sec. 2901. Short title.
Sec. 2902. Definition of Sikes Act for purposes of amendments.
Sec. 2903. Codification of short title of Act.
Sec. 2904. Integrated natural resource management plans.
Sec. 2905. Review for preparation of integrated natural resource management
plans.
Sec. 2906. Annual reviews and reports.
Sec. 2907. Transfer of wildlife conservation fees from closed military installa-
tions.
Sec. 2908. Federal enforcement.
Sec. 2909. Natural resource management services.
Sec. 2910. Definitions.
Sec. 2911. Cooperative agreements.
Sec. 2912. Repeal of superseded provision.
Sec. 2913. Clerical amendments.
Sec. 2914. Authorizations of appropriations.
DIVISION C—DEPARTMENT OF ENERGY NATIONAL SECU-
RITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS
TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL
SECURITY PROGRAMS
Subtitle A—National Security Programs Authorizations
Sec. 3101. Weapons activities.
Sec. 3102. Environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.
Subtitle B—Recurring General Provisions
Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction activi-
ties.
Sec. 3127. Funds available for all national security programs of the Depart-
ment of Energy.
Sec. 3128. Authority relating to transfers of defense environmental manage-
ment funds.
Subtitle C—Program Authorizations, Restrictions, and
Limitations
Sec. 3131. Ballistic Missile Defense National Laboratory Program.
Subtitle D—Other Matters
Sec. 3141. Plan for stewardship, management, and certification of warheads in
the nuclear weapons stockpile.
Sec. 3142. Repeal of obsolete reporting requirements.
Sec. 3143. Study and funding relating to implementation of workforce restruc-
turing plans.
Sec. 3144. Extension of authority for appointment of certain scientific, engi-
neering, and technical personnel.
Sec. 3145. Report on proposed contract for Hanford Tank Waste Vitrification
project.
Sec. 3146. Limitation on conduct of subcritical nuclear weapons tests.
Sec. 3147. Limitation on use of certain funds until future use plans are submit-
ted.
Sec. 3148. Plan for external oversight of national laboratories.
Sec. 3149. University-based research center.
Sec. 3150. Stockpile stewardship program.
Sec. 3151. Reports on advanced supercomputer sales to certain foreign nations.
Sec. 3152. Transfers of real and personal property at certain Department of
Energy facilities.
Sec. 3153. Requirement to delegate certain authorities to site manager of Han-
ford Reservation.
TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY
BOARD
Sec. 3201. Authorization.
Sec. 3202. Plan for transfer of facilities from jurisdiction of Defense Nuclear
Facilities Safety Board to jurisdiction of Nuclear Regulatory
Commission.
TITLE XXXIII—NATIONAL DEFENSE STOCKPILE
Sec. 3301. Authorized uses of stockpile funds.
Sec. 3302. Disposal of beryllium copper master alloy in National Defense
Stockpile.
Sec. 3303. Disposal of titanium sponge in National Defense Stockpile.
Sec. 3304. Conditions on transfer of stockpiled platinum reserves for Treasury
use.
Sec. 3305. Restrictions on disposal of certain manganese ferro.
Sec. 3306. Required procedures for disposal of strategic and critical materials.
TITLE XXXIV—NAVAL PETROLEUM RESERVES
Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal year
1998.
Sec. 3403. Termination of assignment of Navy officers to Office of Naval Pe-
troleum and Oil Shale Reserves.
Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves Numbered 1 and
3.
TITLE XXXV—PANAMA CANAL COMMISSION
Subtitle A—Authorization of Expenditures From Revolving
Fund
Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.
Subtitle B—Facilitation of Panama Canal Transition
Sec. 3511. Short title; references.
Sec. 3512. Definitions relating to Canal transition.
PART I—TRANSITION MATTERS RELATING TO COMMISSION OFFICERS AND
EMPLOYEES
Sec. 3521. Authority for the Administrator of the Commission to accept ap-
pointment as the Administrator of the Panama Canal Author-
ity.
Sec. 3522. Post-Canal Transfer Personnel Authorities.
Sec. 3523. Enhanced authority of Commission to establish compensation of
Commission officers and employees.
Sec. 3524. Travel, transportation, and subsistence expenses for Commission
personnel no longer subject to Federal Travel Regulation.
Sec. 3525. Enhanced recruitment and retention authorities.
Sec. 3526. Transition separation incentive payments.
Sec. 3527. Labor-management relations.
Sec. 3528. Availability of Panama Canal Revolving Fund for severance pay for
certain employees separated by Panama Canal Authority after
Canal Transfer Date.
PART II—TRANSITION MATTERS RELATING TO OPERATION AND
ADMINISTRATION OF CANAL
Sec. 3541. Establishment of procurement system and board of contract appeals.
Sec. 3542. Transactions with the Panama Canal Authority.
Sec. 3543. Time limitations on filing of claims for damages.
Sec. 3544. Tolls for small vessels.
Sec. 3545. Date of actuarial evaluation of FECA liability.
Sec. 3546. Notaries public.
Sec. 3547. Commercial services.
Sec. 3548. Transfer from President to Commission of certain regulatory func-
tions relating to employment classification appeals.
Sec. 3549. Enhanced printing authority.
Sec. 3550. Technical and conforming amendments.
TITLE XXXVI—MARITIME ADMINISTRATION
Sec. 3601. Authorization of appropriations for fiscal year 1998.
Sec. 3602. Repeal of obsolete annual report requirement concerning relative
cost of shipbuilding in the various coastal districts of the Unit-
ed States.
Sec. 3603. Provisions relating to maritime security fleet program.
Sec. 3604. Authority to utilize replacement vessels and capacity.
Sec. 3605. Authority to convey national defense reserve fleet vessel.
Sec. 3606. Determination of gross tonnage for purposes of tank vessel double
hull requirements.
SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.
For purposes of this Act, the term ‘‘congressional de-
fense committees’’ means—
(1) the Committee on Armed Services and the
Committee on Appropriations of the Senate; and
(2) the Committee on National Security and the
Committee on Appropriations of the House of Rep-
resentatives.
DIVISION A—DEPARTMENT OF
DEFENSE AUTHORIZATIONS
TITLE I—PROCUREMENT
Subtitle A—Authorization of
Appropriations
SEC. 101. ARMY.
Funds are hereby authorized to be appropriated for
fiscal year 1998 for procurement for the Army as follows:
(1) For aircraft, $1,535,264,000.
(2) For missiles, $1,176,516,000.
(3) For weapons and tracked combat vehicles,
$1,519,527,000.
(4) For ammunition, $1,093,802,000.
(5) For other procurement, $2,640,277,000.
SEC. 102. NAVY AND MARINE CORPS.
(a) NAVY.—Funds are hereby authorized to be appro-
priated for fiscal year 1998 for procurement for the Navy
as follows:
(1) For aircraft, $6,172,950,000.
(2) For weapons, including missiles and tor-
pedoes, $1,214,687,000.
(3) 
For 
shipbuilding 
and 
conversion,
$7,654,977,000.
(4) For other procurement, $3,073,432,000.
(b) MARINE CORPS.—Funds are hereby authorized to
be appropriated for fiscal year 1998 for procurement for
the Marine Corps in the amount of $442,807,000.
(c) NAVY AND MARINE CORPS AMMUNITION.—Funds
are hereby authorized to be appropriated for procurement
of ammunition for the Navy and the Marine Corps in the
amount of $470,355,000.
SEC. 103. AIR FORCE.
Funds are hereby authorized to be appropriated for
fiscal year 1998 for procurement for the Air Force as fol-
lows:
(1) For aircraft, $6,770,900,000.
(2) For missiles, $2,389,183,000.
(3) For ammunition, $436,984,000.
(4) For other procurement, $6,574,096,000.
SEC. 104. DEFENSE-WIDE ACTIVITIES.
Funds are hereby authorized to be appropriated for
fiscal year 1998 for Defense-wide procurement in the
amount of $1,836,989,000.
SEC. 105. RESERVE COMPONENTS.
Funds are hereby authorized to be appropriated for
fiscal year 1998 for procurement of aircraft, vehicles, com-
munications equipment, and other equipment for the re-
serve components of the Armed Forces as follows:
(1) 
For 
the 
Army 
National 
Guard,
$102,700,000.
(2) For the Air National Guard, $117,775,000.
(3) For the Army Reserve, $90,400,000.
(4) For the Naval Reserve, $118,000,000.
(5) For the Air Force Reserve, $167,630,000.
(6) 
For 
the 
Marine 
Corps 
Reserve,
$98,600,000.
(7) For the Coast Guard Reserve, $5,250,000.
SEC. 106. DEFENSE INSPECTOR GENERAL.
Funds are hereby authorized to be appropriated for
fiscal year 1998 for procurement for the Inspector General
of the Department of Defense in the amount of
$1,800,000.
SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.
There is hereby authorized to be appropriated for fis-
cal year 1998 the amount of $610,700,000 for—
(1) the destruction of lethal chemical agents
and munitions in accordance with section 1412 of
the Department of Defense Authorization Act, 1986
(50 U.S.C. 1521); and
(2) the destruction of chemical warfare materiel
of the United States that is not covered by section
1412 of such Act.
SEC. 108. DEFENSE HEALTH PROGRAMS.
Funds are hereby authorized to be appropriated for
fiscal year 1998 for the Department of Defense for pro-
curement for carrying out health care programs, projects,
and activities of the Department of Defense in the total
amount of $279,068,000.
SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.
Funds are hereby authorized to be appropriated for
fiscal year 1998 for the Department of Defense for carry-
ing out the Defense Export Loan Guarantee Program in
the total amount of $1,231,000.
SEC. 122. REPORT ON ANNUAL BUDGET SUBMISSION RE-
GARDING THE RESERVE COMPONENTS.
(a) IN GENERAL.—Chapter 1013 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 10544. Budget information
‘‘(a) REPORT.—The Secretary of Defense shall sub-
mit to the congressional committees specified in subsection
(d), at the same time that the President submits the budg-
et for a fiscal year under section 1105(a) of title 31, Unit-
ed States Code, a report on amounts requested in that
budget for the reserve components.
‘‘(b) CONTENT.—The report shall include the follow-
ing:
‘‘(1) A description of the anticipated effect that
the amounts requested (if approved by Congress)
will have to enhance the capabilities of each of the
reserve components.
‘‘(2) A listing, with respect to each such compo-
nent, of each of the following:
‘‘(A) The amount requested for each major
weapon system for which funds are requested in
the budget for that component.
‘‘(B) The amount requested for each item
of equipment (other than a major weapon sys-
tem) for which funds are requested in the budg-
et for that component.
‘‘(c) 
INCLUSION
OF
INFORMATION
IN
NEXT
FYDP.—The Secretary of Defense shall specifically dis-
play in the each future-years defense program (or program
revision) submitted to Congress under section 221 of this
title the amounts programmed for procurement of equip-
ment for each of the reserve components.
‘‘(d) CONGRESSIONAL COMMITTEES SPECIFIED.—
The congressional committees referred to in subsection (a)
are the following:
‘‘(1) The Committee on Armed Services and the
Committee on Appropriations of the Senate.
‘‘(2) The Committee on National Security and
the Committee on Appropriations of the House of
Representatives.
‘‘(e) EXCLUSION OF COAST GUARD RESERVE.—In
this section, the term ‘reserve components’ does not in-
clude the Coast Guard Reserve.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘10544. Budget information.’’.
TITLE II—RESEARCH, DEVELOP-
MENT, TEST, AND EVALUA-
TION
Subtitle A—Authorization of
Appropriations
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for
fiscal year 1998 for the use of the Department of Defense
for research, development, test, and evaluation as follows:
(1) For the Army, $4,752,913,000.
(2) For the Navy, $7,946,996,000.
(3) For the Air Force, $14,659,736,000.
(4) 
For 
Defense-wide 
activities,
$9,914,080,000, of which—
(A) $279,683,000 is authorized for the ac-
tivities of the Director, Test and Evaluation;
and
(B) $23,384,000 is authorized for the Di-
rector of Operational Test and Evaluation.
SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.
(a) FISCAL YEAR 1998.—Of the amounts authorized
to be appropriated by section 201, $4,131,871,000 shall
be available for basic research and applied research
projects.
(b) BASIC RESEARCH AND APPLIED RESEARCH DE-
FINED.—For purposes of this section, the term ‘‘basic re-
search and applied research’’ means work funded in pro-
gram elements for defense research and development
under Department of Defense category 6.1 or 6.2.
SEC. 203. DUAL-USE TECHNOLOGY PROGRAM.
(a) FUNDING REQUIREMENT.—Of the amounts ap-
propriated pursuant to the authorizations in section 201
for the Department of Defense for science and technology
programs for each of fiscal years 1998 through 2001, at
least the following percentages of such amounts shall be
available in the applicable fiscal year only for dual-use
projects of the Department of Defense:
(1) For fiscal year 1998, 5 percent.
(2) For fiscal year 1999, 7 percent.
(3) For fiscal year 2000, 10 percent.
(4) For fiscal year 2001, 15 percent.
(b) SENIOR OFFICIAL FOR DUAL-USE PROGRAM.—
The person responsible for developing policy relating to,
and ensuring effective implementation of, the dual-use
technology program of the Department of Defense is the
senior official designated by the Secretary of Defense
under section 203(b) of the National Defense Authoriza-
tion Act for Fiscal Year 1997 (Public Law 104–201; 110
Stat. 2451).
(c) LIMITATION ON OBLIGATIONS.—(1) Except as
provided in paragraph (2), funds made available pursuant
to subsection (a) may not be obligated until the senior offi-
cial referred to in subsection (b) approves the obligation.
(2) Paragraph (1) does not apply with respect to
funds made available pursuant to subsection (a) to the De-
fense Advanced Research Projects Agency.
(3) Funds made available pursuant to subsection (a)
may be used for a dual-use project only if the contract,
cooperative agreement, or other transaction by which the
project is carried out is entered into through the use of
competitive procedures.
(d) TRANSFER AUTHORITY.—In addition to the
transfer authority provided in section 1001, the Secretary
of Defense may transfer funds made available pursuant
to subsection (a) for a dual-use project from a military
department or defense agency to another military depart-
ment or defense agency to ensure efficient implementation
of the dual-use technology program. The Secretary may
delegate the authority provided in the preceding sentence
to the senior official referred to in subsection (b).
(e) FEDERAL COST SHARE.—(1) The share contrib-
uted by the Secretary of a military department or the head
of a defense agency for the cost of a dual-use project dur-
ing fiscal years 1998, 1999, 2000, and 2001 may not be
greater than 50 percent of the cost of the project for that
fiscal year.
(2) In calculating the share of the costs of a dual-
use program contributed by a military department or a
non-Government entity, the Secretaries of the military de-
partments may not consider in-kind contributions.
(f) DEFINITIONS.—In this section, the terms ‘‘dual-
use technology program’’, ‘‘dual-use project’’, and ‘‘science
and technology program’’ have the meanings provided by
section 203(h) of the National Defense Authorization Act
for Fiscal Year 1997 (Public Law 104–201; 110 Stat.
2452).
Subtitle 
B—Program 
Require-
ments, Restrictions, and Limita-
tions
SEC. 211. MANUFACTURING TECHNOLOGY PROGRAM.
Section 2525 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(e) FUNDING REQUIREMENT.—(1) Subject to para-
graph (2), the Secretary of Defense shall make available
each fiscal year for the Manufacturing Technology Pro-
gram the greater of the following amounts:
‘‘(A) 0.25 percent of the amount available for
the fiscal year concerned for the demonstration and
‘‘(g) REPORT.—(1) At the same time the President
submits to Congress the budget for fiscal year 1999 pur-
suant to section 1105(a) of title 31, the Secretary of De-
fense shall submit to Congress a report that—
‘‘(A) specifies the plans of the Secretary for ex-
penditures under the program during fiscal years
1998, 1999, and 2000; and
‘‘(B) assesses the effectiveness of the program.
‘‘(2) The Secretary shall submit an updated version
of such report at the same time the President submits the
budget for each fiscal year after fiscal year 1999 during
which the program is in effect shall include—
‘‘(A) an assessment of whether the funding of
the program, as provided pursuant to the funding
requirement of subsection (e), is sufficient; and
‘‘(B) any recommendations considered appro-
priate by the Secretary for changes in, or an exten-
sion of, the funding requirement of subsection (e).’’.
SEC. 212. REPORT ON STRATEGIC ENVIRONMENTAL RE-
SEARCH AND DEVELOPMENT PROGRAM.
(a) REPORT.—Not later than February 28, 1998, the
Secretary of Defense shall submit to Congress a report
containing, for each project or activity of the Strategic En-
vironmental Research and Development Program—
(1) an explanation of why the project or activity
is not duplicative of environmentally related re-
search, development, and demonstration activities of
other departments and agencies of the Federal Gov-
ernment, of State and local governments, or of other
organizations engaged in such activities; and
(2) an explanation of why the project or activity
is uniquely related to and necessary for the mission
of the Department of Defense.
(b) LIMITATION ON USE OF FUNDS PENDING SUB-
MISSION OF REPORT.—Not more than 50 percent of the
funds appropriated for the Strategic Environmental Re-
search and Development Program pursuant to the author-
ization of appropriations in section 201(4) may be ex-
pended until the Secretary of Defense submits the report
required under this section.
SEC. 213. TACTICAL UNMANNED AERIAL VEHICLES.
(a) PROHIBITION
ON
FUNDING
FOR
OUTRIDER
ACTD PROGRAM.—No funds authorized to be appro-
priated under section 201 may be obligated for the Out-
rider Advanced Concept Technology Demonstration
(ACTD) program.
(b) FUNDING REQUIREMENTS.—Of the funds author-
ized to be appropriated for tactical unmanned aerial vehi-
cles (TUAV) under section 201—
(1) $10,000,000 shall be available to carry out
a competition for an unmanned aerial vehicle capa-
ble of vertical takeoff and landing; and
(2) $11,500,000 shall be available to provide a
Predator Unmanned Aerial Vehicle system equipped
with synthetic aperture radar and associated equip-
ment to facilitate the development of a common Tac-
tical Control System for unmanned aerial vehicles.
SEC. 214. REVISIONS TO MEMBERSHIP OF AND APPOINT-
MENT AUTHORITY FOR NATIONAL OCEAN RE-
SEARCH LEADERSHIP COUNCIL.
(a) MEMBERSHIP REVISIONS.—Section 7902(b) of
title 10, United States Code, is amended—
(1) by striking out paragraph (11); and
(2) in paragraph (17), by striking out ‘‘One
member’’ and inserting in lieu thereof ‘‘Not more
than four members’’.
(b) APPOINTMENT AUTHORITY REVISIONS.—Section
7902 of such title is amended—
(1) in paragraphs (14), (15), (16), and (17) of
subsection (b), by striking out ‘‘chairman’’ each
place it appears and inserting in lieu thereof ‘‘Presi-
dent’’; and
(2) by adding at the end the following new sub-
section:
‘‘(j) DELEGATION OF APPOINTMENT AUTHORITY.—
The President may delegate the authority to make ap-
pointments under subsection (b) to the head of a depart-
ment, without authority to redelegate.’’.
(c) CONFORMING AMENDMENTS.—(1) Section 7902
of such title is further amended—
(A) in subsection (b), by redesignating para-
graphs (12), (13), (14), (15), (16), and (17) as
paragraphs (11), (12), (13), (14), (15), and (16), re-
spectively; and
(B) in subsection (d), by striking out ‘‘(14),
(15), (16), or (17)’’ and inserting in lieu thereof
‘‘(13), (14), (15), or (16)’’.
(2) Section 282 of the National Defense Authoriza-
tion Act for Fiscal Year 1997 (Public Law 104–201; 110
Stat. 2473) is amended by striking out subsection (c).
SEC. 215. MAINTENANCE AND REPAIR OF REAL PROPERTY
AT AIR FORCE INSTALLATIONS.
(a) IN GENERAL.—Chapter 949 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 9782. Maintenance and repair of real property
‘‘(a) ALLOCATION OF FUNDS.—The Secretary of the
Air Force shall allocate funds authorized to be appro-
priated by a provision described in subsection (c) and a
provision described in subsection (d) for maintenance and
repair of real property at military installations of the De-
partment of the Air Force without regard to whether the
installation is supported with funds authorized by a provi-
sion described in subsection (c) or (d).
‘‘(b) MIXING OF FUNDS PROHIBITED ON INDIVIDUAL
PROJECTS.—The Secretary of the Air Force may not com-
bine funds authorized to be appropriated by a provision
described in subsection (c) and funds authorized to be ap-
propriated by a provision described in subsection (d) for
an individual project for maintenance and repair of real
property at a military installation of the Department of
the Air Force.
‘‘(c) RESEARCH, DEVELOPMENT, TEST, AND EVAL-
UATION FUNDS.—The provision described in this sub-
section is a provision of a national defense authorization
Act that authorizes funds to be appropriated for a fiscal
year to the Air Force for research, development, test, and
evaluation.
‘‘(d) OPERATION AND MAINTENANCE FUNDS.—The
provision described in this subsection is a provision of a
national defense authorization Act that authorizes funds
to be appropriated for a fiscal year to the Air Force for
operation and maintenance.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘9782. Maintenance and repair of real property.’’.
SEC. 216. EXPANSION OF ELIGIBILITY FOR DEFENSE EX-
PERIMENTAL PROGRAM TO STIMULATE COM-
PETITIVE RESEARCH.
Section 257 of the National Defense Authorization
Act for Fiscal Year 1995 (Public Law 103–337; U.S.C.
2358 note) is amended by adding at the end of subsection
(d) the following new paragraph:
‘‘(3) In this section, the term ‘State’ means a
State of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, Guam, the Vir-
gin Islands, American Samoa, and the Common-
wealth of the Northern Mariana Islands.’’.
SEC. 217. BIOASSAY TESTING OF VETERANS EXPOSED TO
IONIZING 
RADIATION 
DURING 
MILITARY
SERVICE.
Of the amount provided in section 201(4),
$300,000 shall be available for the Nuclear Test Personnel
Review Program conducted by the Defense Special Weap-
ons Agency.
SEC. 218. COMANCHE PROGRAM.
The Congress supports the Army in its Comanche
program technology transfer and acquisition efforts,
which—
(1) offer potential RAH–66 Air Vehicle and
T800 engine cost, schedule, and technical risk reduc-
tion; and
(2) include cooperative efforts with other Gov-
ernment agencies such as the National Guard (UH–
1H engine technology insertion), the Defense Ad-
vanced Research Projects Agency, and other re-
search and development programs of the military de-
partments.
SEC. 219. LAND ATTACK STANDARD MISSILE.
Of the amount provided in section 201(2) for re-
search, development, test, and evaluation for the Navy—
(1) the amount available for program element
63795N for the Land Attack Technology program is
increased by $10,000,000, to be available for flight
test demonstration and risk reduction activities for
the Land Attack Standard Missile;
(2) the amount available for program element
62317N (Air Systems and Weapons Advance Tech-
nology) is reduced by $5,000,000; and
(3) the amount available for program element
63508N (Ship Hull Mechanical and Electrical Tech-
nology) is reduced by $5,000,000.
SEC. 220. REPORT ON OPERATIONAL FIELD ASSESSMENTS
PROGRAM.
(a) FINDING.—Congress recognizes the potential
value that the Department of Defense Operational Field
Assessments program, which is managed by the Director
of Operational Test and Evaluation, provides to the com-
manders of the Unified Combatant Commands with re-
spect to assessment of the effectiveness of near-term oper-
ational concepts and critical operational issues in quick-
response operational tests and evaluations.
(b) REPORT.—Not later than March 30, 1998, the
Secretary of Defense shall submit to the congressional de-
fense committees a report on the Operational Field As-
sessments program.
(c) CONTENT OF REPORT.—The report shall contain
the following:
(1) A review of the Operational Field Assess-
ments program which describes the goals and objec-
tives of the program, assessments by the program
conducted as of the date of the submission of the re-
port, and the results of those assessments.
(2) A description of the current management
and support structure of the program within the De-
partment of Defense, including a description of how
program responsibilities are assigned within the Of-
fice of the Secretary of Defense and a description of
the roles of the Joint Staff, the commanders of the
Unified Combatant Commands, and the military de-
partments.
(3) A description of future plans for the pro-
gram and funding requirements for those plans.
(4) Recommendations regarding additional stat-
utory authority that may be required for the pro-
gram.
Subtitle C—Ballistic Missile
Defense Programs
SEC. 231. BUDGETARY TREATMENT OF AMOUNTS RE-
QUESTED FOR PROCUREMENT FOR BALLIS-
TIC MISSILE DEFENSE PROGRAMS.
(a) REQUIREMENT FOR INCLUSION IN BUDGET OF
BMDO.—(1) Chapter 9 of title 10, United States Code,
is amended by inserting after section 222 the following
new section:
‘‘§ 224. Ballistic missile defense programs: amounts
for procurement
‘‘(a) REQUIREMENT.—Any amount in the budget
submitted to Congress under section 1105 of title 31 for
any fiscal year for procurement for the National Missile
Defense program or for any system that is part of the
core theater missile defense program shall be set forth
under the account of the Department of Defense for De-
fense-wide procurement and, within that account, under
the subaccount (or other budget activity level) for the Bal-
listic Missile Defense Organization.
‘‘(b) CORE THEATER BALLISTIC MISSILE DEFENSE
PROGRAM.—For purposes of this section, the core theater
missile defense program consists of the systems specified
in section 234 of the Ballistic Missile Defense Act of 1995
(10 U.S.C. 2431 note).’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 222 the following new
item:
‘‘224. Ballistic missile defense programs: amounts for procurement.’’.
SEC. 232. COOPERATIVE BALLISTIC MISSILE DEFENSE PRO-
GRAM.
(a) REQUIREMENT FOR NEW PROGRAM ELEMENT.—
The Secretary of Defense shall establish a program ele-
ment for the Ballistic Missile Defense Organization, to be
referred to as the ‘‘Cooperative Ballistic Missile Defense
Program’’, to support technical and analytical cooperative
efforts between the United States and other nations that
contribute to United States ballistic missile defense capa-
bilities. All international cooperative ballistic missile de-
fense programs of the Department of Defense shall be
budgeted and administered through that program element.
(b) RELATIONSHIP
TO
OTHER
PROGRAM
ELE-
MENTS.—The program element established pursuant to
subsection (a) is in addition to the program elements for
activities of the Ballistic Missile Defense Organization re-
quired under section 251 of the National Defense Author-
ization Act for Fiscal Year 1996 (Public Law 104–106;
110 Stat. 233; 10 U.S.C. 221 note).
SEC. 233. DEPLOYMENT DATES FOR CORE THEATER MIS-
SILE DEFENSE PROGRAMS.
(a) CHANGE
IN
DEPLOYMENT
DATES.—Section
234(a) of the Ballistic Missile Defense Act of 1995 (sub-
title C of title II of Public Law 104–106; 110 Stat. 229;
10 U.S.C. 2431 note) is amended—
(1) in the matter preceding paragraph (1), by
striking out ‘‘, to be carried out so as to achieve the
specified capabilities’’;
(2) in paragraph (1), by striking out ‘‘, with a
first unit equipped (FUE) during fiscal year 1998’’;
(3) in paragraph (2), by striking out ‘‘Navy
Lower Tier (Area) system’’ and all that follows
through ‘‘fiscal year 1999’’ and inserting in lieu
thereof ‘‘Navy Area Defense system’’;
(4) in paragraph (3)—
(A) by striking out ‘‘with a’’ and inserting
in lieu thereof ‘‘to be carried out so as to
achieve a’’; and
(B) by striking out ‘‘fiscal year 1998’’ and
‘‘fiscal year 2000’’ and inserting in lieu thereof
‘‘fiscal year 2000’’ and ‘‘fiscal year 2004’’, re-
spectively; and
(5) in paragraph (4), by striking out ‘‘Navy
Upper Tier (Theater Wide) system, with’’ and in-
serting in lieu thereof ‘‘Navy Theater Wide system,
to be carried out so as to achieve’’.
(b) CONFORMING AMENDMENTS FOR PROGRAM ELE-
MENT NAME CHANGES.—Section 251(a) of the National
Defense Authorization Act for Fiscal Year 1996 (Public
Law 104–106; 110 Stat. 233; 10 U.S.C. 221 note) is
amended—
(1) in paragraph (2), by striking out ‘‘Navy
Lower Tier (Area) system’’ and inserting in lieu
thereof ‘‘Navy Area Defense system’’; and
(2) in paragraph (4), by striking out ‘‘Navy
Upper Tier (Theater Wide) system’’ and inserting in
lieu thereof ‘‘Navy Theater Wide system’’.
SEC. 234. ANNUAL REPORT ON THREAT POSED TO THE
UNITED STATES BY WEAPONS OF MASS DE-
STRUCTION, 
BALLISTIC 
MISSILES, 
AND
CRUISE MISSILES.
(a) ANNUAL REPORT.—The Secretary of Defense
shall submit to Congress by January 30 of each year a
report on the threats posed to the United States and allies
of the United States—
(1) by weapons of mass destruction, ballistic
missiles, and cruise missiles; and
(2) by the proliferation of weapons of mass de-
struction, ballistic missiles, and cruise missiles.
(b) CONSULTATION.—Each report submitted under
subsection (a) shall be prepared in consultation with the
Director of Central Intelligence.
(c) MATTERS TO BE INCLUDED.—Each report sub-
mitted under subsection (a) shall include the following:
(1) Identification of each foreign country and
non-State organization that possesses weapons of
mass destruction, ballistic missiles, or cruise mis-
siles, and a description of such weapons and missiles
with respect to each such foreign country and non-
State organization.
(2) A description of the means by which any
foreign country and non-State organization that has
achieved capability with respect to weapons of mass
destruction, ballistic missiles, or cruise missiles has
achieved that capability, including a description of
the international network of foreign countries and
private entities that provide assistance to foreign
countries and non-State organizations in achieving
that capability.
(3) An examination of the doctrines that guide
the use of weapons of mass destruction in each for-
eign country that possesses such weapons.
(4) An examination of the existence and imple-
mentation of the control mechanisms that exist with
respect to nuclear weapons in each foreign country
that possesses such weapons.
(5) Identification of each foreign country and
non-State organization that seeks to acquire or de-
velop (indigenously or with foreign assistance) weap-
ons of mass destruction, ballistic missiles, or cruise
missiles, and a description of such weapons and mis-
siles with respect to each such foreign country and
non-State organization.
(6) An assessment of various possible timelines
for the achievement by foreign countries and non-
State organizations of capability with respect to
weapons of mass destruction, ballistic missiles, and
cruise missiles, taking into account the probability of
whether the Russian Federation and the People’s
Republic of China will comply with the Missile Tech-
nology Control Regime, the potential availability of
assistance from foreign technical specialists, and the
potential for independent sales by foreign private en-
tities without authorization from their national Gov-
ernments.
(7) For each foreign country or non-State orga-
nization that has not achieved the capability to tar-
get the United States or its territories with weapons
of mass destruction, ballistic missiles, or cruise mis-
siles as of the date of the enactment of this Act, an
estimate of how far in advance the United States is
likely to be warned before such foreign country or
non-State organization achieves that capability.
(8) For each foreign country or non-State orga-
nization that has not achieved the capability to tar-
get members of the United States Armed Forces de-
ployed abroad with weapons of mass destruction,
ballistic missiles, or cruise missiles as of the date of
the enactment of this Act, an estimate of how far in
advance the United States is likely to be warned be-
fore such foreign country or non-State organization
achieves that capability.
(d) CLASSIFICATION.—Each report under subsection
(a) shall be submitted in classified and unclassified form.
SEC. 235. DIRECTOR OF BALLISTIC MISSILE DEFENSE OR-
GANIZATION.
(a) IN GENERAL.—Subchapter II of chapter 8 of title
10, United States Code, is amended by adding at the end
the following new section:
‘‘§ 203. Director of Ballistic Missile Defense Organiza-
tion
‘‘(a) GRADE.—The position of Director of the Ballis-
tic Missile Defense Organization—
‘‘(1) may only be held by an officer of the
armed forces on the active-duty list; and
‘‘(2) shall be designated under section 601 of
this title as a position of importance and responsibil-
ity to carry the grade of general or admiral or lieu-
tenant general or vice admiral.
‘‘(b) LINE OF AUTHORITY TO SECRETARY OF DE-
FENSE.—The Director of the Ballistic Missile Defense Or-
ganization reports directly to the Secretary of Defense and
(if so directed by the Secretary) the Deputy Secretary of
Defense, without intervening review or approval by any
other officer of the Department of Defense, with respect
to all matters pertaining to the management of ballistic
missile defense programs for which the Director has re-
sponsibility (including matters pertaining to the status of
those programs and the budgets for those programs).’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such subchapter is amended by adding
at the end the following new item:
‘‘203. Director of Ballistic Missile Defense Organization.’’.
SEC. 236. TACTICAL HIGH ENERGY LASER PROGRAM.
(a) TRANSFER OF PROGRAM.—The Secretary of De-
fense shall transfer the Tactical High Energy Laser pro-
gram from the Secretary of the Army to the Director of
the Ballistic Missile Defense Organization, to be carried
out under the Cooperative Ballistic Missile Defense Pro-
gram established pursuant to section 232(a).
(b) AUTHORIZATION.—Of the amount authorized to
be appropriated in section 201, $38,200,000 is authorized
for the Tactical High Energy Laser program.
TITLE III—OPERATION AND
MAINTENANCE
Subtitle A—Authorization of
Appropriations
SEC. 301. OPERATION AND MAINTENANCE FUNDING.
Funds are hereby authorized to be appropriated for
fiscal year 1998 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for
expenses, not otherwise provided for, for operation and
maintenance, in amounts as follows:
(1) For the Army, $17,185,034,000.
(2) For the Navy, $21,372,699,000.
(3) For the Marine Corps, $2,381,245,000.
(4) For the Air Force, $18,745,985,000.
(5) 
For 
Defense-wide 
activities,
$10,030,057,000.
(6) For the Army Reserve, $1,202,891,000.
(7) For the Naval Reserve, $849,711,000.
(8) 
For 
the 
Marine 
Corps 
Reserve,
$110,366,000.
(9) For the Air Force Reserve, $1,629,120,000.
(10) 
For 
the 
Army 
National 
Guard,
$2,266,432,000.
(11) 
For 
the 
Air 
National 
Guard,
$2,985,969,000.
(12) For the Defense Inspector General,
$136,580,000.
(13) For the United States Court of Appeals
for the Armed Forces, $6,952,000.
(14) For Environmental Restoration, Army,
$377,337,000.
(15) For Environmental Restoration, Navy,
$277,500,000.
(16) For Environmental Restoration, Air Force,
$378,900,000.
(17) For Environmental Restoration, Defense-
wide, $27,900,000.
(18) For Environmental Restoration, Formerly
Used Defense Sites, $202,300,000.
(19) For Overseas Humanitarian, Disaster, and
Civic Aid programs, $50,000,000.
(20) For Drug Interdiction and Counter-drug
Activities, Defense-wide, $661,671,000.
(21) For the Kaho’olawe Island Conveyance,
Remediation, and Environmental Restoration Trust
Fund, $10,000,000.
(22) 
For 
Medical 
Programs, 
Defense,
$9,975,382,000.
(23) For Cooperative Threat Reduction pro-
grams, $284,700,000.
(24) For Overseas Contingency Operations
Transfer Fund, $1,467,500,000.
SEC. 302. WORKING CAPITAL FUNDS.
Funds are hereby authorized to be appropriated for
fiscal year 1998 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for
providing capital for working capital and revolving funds
in amounts as follows:
(1) For the Defense Working Capital Funds,
$971,952,000.
(2) For the National Defense Sealift Fund,
$1,181,626,000.
SEC. 303. ARMED FORCES RETIREMENT HOME.
There is hereby authorized to be appropriated for fis-
cal year 1998 from the Armed Forces Retirement Home
Trust Fund the sum of $79,977,000 for the operation of
the Armed Forces Retirement Home, including the United
States Soldiers’ and Airmen’s Home and the Naval Home.
SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCK-
PILE TRANSACTION FUND.
(a) TRANSFER AUTHORITY.—To the extent provided
in appropriations Acts, not more than $150,000,000 is au-
thorized to be transferred from the National Defense
Stockpile Transaction Fund to operation and maintenance
accounts for fiscal year 1998 in amounts as follows:
(1) For the Army, $50,000,000.
(2) For the Navy, $50,000,000.
(3) For the Air Force, $50,000,000.
(b) TREATMENT OF TRANSFERS.—Amounts trans-
ferred under this section—
(1) shall be merged with, and be available for
the same purposes and the same period as, the
amounts in the accounts to which transferred; and
(2) may not be expended for an item that has
been denied authorization of appropriations by Con-
gress.
(c) RELATIONSHIP TO OTHER TRANSFER AUTHOR-
ITY.—The transfer authority provided in this section is in
addition to the transfer authority provided in section
1001.
SEC. 305. REFURBISHMENT AND INSTALLATION OF AIR
SEARCH RADAR.
Of the amount authorized to be appropriated pursu-
ant to section 301(2) for operation and maintenance for
the Navy, $6,000,000 shall be available only for the refur-
bishment and installation of the AN/SPS-48E air search
radar for the Ship Self Defense System at the Integrated
Ship Defense Systems Engineering Center, Naval Surface
Warfare Center, Wallops Islands, Virginia.
SEC. 306. REFURBISHMENT OF M1–A1 TANKS.
Of the amount authorized to be appropriated pursu-
ant to section 301(1) for operation and maintenance for
the Army, $35,000,000 shall be available only for refur-
bishment of M1–A1 tanks at the Anniston Army Depot
under the AIM-XXI program if the Secretary of Defense
determines that the cost effectiveness of the pilot AIM-
XXI program is validated through user trials conducted
at the National Training Center, Fort Irwin, California.
SEC. 307. PROCUREMENT AND ELECTRONIC COMMERCE
TECHNICAL ASSISTANCE PROGRAM.
(a) AUTHORIZATION.—Subject to subsection (c), of
the amount authorized to be appropriated under section
301(5), $15,000,000 shall be available for carrying out the
provisions of chapter 142 of title 10, United States Code.
(b) PROHIBITION.—Subject to subsection (c), the
Secretary of Defense may not obligate or expend any
funds available for research, development, test, and eval-
uation to establish or operate a resource center or pro-
gram to provide technical assistance relating to electronic
commerce.
(c) LIMITATION.—Subsections (a) and (b) apply only
in the event of the consolidation of the procurement tech-
nical assistance program and the electronic commerce re-
source program as a single technical assistance program
funded with amounts available for operation and mainte-
nance.
Subtitle B—Military Readiness
Issues
SEC. 311. EXPANSION OF SCOPE OF QUARTERLY READI-
NESS REPORTS.
(a) EXPANDED REPORTS REQUIRED.—Section 482
of title 10, United States Code, is amended to read as
follows:
‘‘§ 482. Quarterly readiness reports
‘‘(a) QUARTERLY REPORTS REQUIRED.—Not later
than 30 days after the end of each calendar-year quarter,
the Secretary of Defense shall submit to the Committee
on Armed Services of the Senate and the Committee on
National Security of the House of Representatives a re-
port on military readiness. The report for a quarter shall
contain the information required by subsections (b) (d),
and (e).
‘‘(b) READINESS PROBLEMS
AND REMEDIAL AC-
TIONS.—Each report shall specifically describe—
‘‘(1) readiness problems or deficiencies identi-
fied using the assessments considered under sub-
section (c);
‘‘(2) planned remedial actions; and
‘‘(3) the key indicators and other relevant infor-
mation related to the identified problem or defi-
ciency.
‘‘(c) 
CONSIDERATION
OF
READINESS
ASSESS-
MENTS.—The information required under subsection (b)
to be included in the report for a quarter shall be based
on readiness assessments that are provided during that
quarter—
‘‘(1) to any council, committee, or other body of
the Department of Defense—
‘‘(A) that has responsibility for readiness
oversight; and
‘‘(B) whose membership includes at least
one civilian officer in the Office of the Secretary
of Defense at the level of Assistant Secretary of
Defense or higher;
‘‘(2) by senior civilian and military officers of
the military departments and the commanders of the
unified and specified commands; and
‘‘(3) as part of any regularly established proc-
ess of periodic readiness reviews for the Department
of Defense as a whole.
‘‘(d) COMPREHENSIVE READINESS INDICATORS.—
Each report shall also include information regarding each
military department (and an evaluation of such informa-
tion) with respect to each of the following readiness indica-
tors:
‘‘(1) PERSONNEL STRENGTH.—
‘‘(A) Individual personnel status.
‘‘(B) Historical and projected personnel
trends.
‘‘(2) PERSONNEL TURBULENCE.—
‘‘(A) Recruit quality.
‘‘(B) Borrowed manpower.
‘‘(C) Personnel stability.
‘‘(3) OTHER PERSONNEL MATTERS.—
‘‘(A) Personnel morale.
‘‘(B) Medical and dental readiness.
‘‘(C) Recruit shortfalls.
‘‘(4) TRAINING.—
‘‘(A) Training unit readiness and pro-
ficiency.
‘‘(B) Operations tempo.
‘‘(C) Training funding.
‘‘(D) Training commitments and deploy-
ments.
‘‘(5) LOGISTICS—EQUIPMENT FILL.—
‘‘(A) Deployed equipment.
‘‘(B) Equipment availability.
‘‘(C) Equipment that is not mission capa-
ble.
‘‘(D) Age of equipment.
‘‘(E) Condition of nonpacing items.
‘‘(6) LOGISTICS—EQUIPMENT MAINTENANCE.—
‘‘(A) Maintenance backlog.
‘‘(7) LOGISTICS—SUPPLY.—
‘‘(A) Availability of ordnance and spares.
‘‘(e) UNIT READINESS INDICATORS.—Each report
shall also include information regarding the readiness of
each unit of the armed forces at the battalion, squadron,
or an equivalent level (or a higher level) that received a
readiness rating of C–3 (or below) for any month of the
calendar-year quarter covered by the report. With respect
to each such unit, the report shall separately provide the
following information:
‘‘(1) The unit designation and level of organiza-
tion.
‘‘(2) The overall readiness rating for the unit
for the quarter and each month of the quarter.
‘‘(3) The resource area or areas (personnel,
equipment and supplies on hand, equipment condi-
tion, or training) that adversely affected the unit’s
readiness rating for the quarter.
‘‘(4) If the unit received a readiness rating
below C–1 in personnel for the quarter, the primary
reason for the lower rating, by reason code and defi-
nition.
‘‘(5) If the unit received a readiness rating
below C–1 in equipment and supplies on hand for
the quarter, the primary reason for the lower rating,
by reason code and definition.
‘‘(6) If the unit received a readiness rating
below C–1 in equipment condition for the quarter,
the primary reason for the lower rating, by reason
code and definition.
‘‘(7) If the unit received a readiness rating
below C–1 in training for the quarter, the primary
reason for the lower rating, by reason code and defi-
nition.
‘‘(f) CLASSIFICATION OF REPORTS.—A report under
this section shall be submitted in unclassified form. To
the extent the Secretary of Defense determines necessary,
the report may also be submitted in classified form.’’.
(b) IMPLEMENTATION PLAN TO EXAMINE READI-
NESS INDICATORS.—Not later than January 15, 1998, the
Secretary of Defense shall submit to the congressional de-
fense committees a plan—
(1) specifying the manner in which the Sec-
retary will implement the additional reporting re-
quirement of subsection (d) of section 482 of title
10, United States Code, as added by this section;
and
(2) specifying the criteria proposed to be used
to evaluate the readiness indicators identified in
such subsection (d).
(c) LIMITATION PENDING RECEIPT OF IMPLEMENTA-
TION PLAN.—Of the amount available for fiscal year 1998
for operation and support activities of the Office of the
Secretary of Defense, 10 percent may not be obligated
until after the date on which the implementation plan re-
quired by subsection (b) is submitted.
(d) FIRST REPORT; TRANSITION.—The first report
required under section 482 of title 10, United States Code,
as amended by subsection (a), shall be submitted not later
than October 31, 1997. Until the report required for the
third quarter of 1998 is submitted, the Secretary of De-
fense may omit the information required by subsection (d)
of such section if the Secretary determines that it is im-
practicable to comply with such subsection with regard to
the preceding reports.
SEC. 312. LIMITATION ON REALLOCATION OF FUNDS WITH-
IN OPERATION AND MAINTENANCE APPRO-
PRIATIONS.
(a) LIMITATION.—Whenever the Secretary of De-
fense proposes to reallocate funds within an O&M budget
activity in a manner described in subsection (b), the re-
allocation may be made only—
(1) after the Secretary submits to the congres-
sional defense committees notice of the proposed re-
allocation; and
(2) if the procedures generally applicable to
transfers of funds between appropriations of the De-
partment of Defense have been followed with respect
to such reallocation.
(b) COVERED REALLOCATIONS.—Subsection (a) ap-
plies in the case of any reallocation of funds from a sub-
activity of an O&M budget activity to another subactivity
within the same O&M budget activity or to another O&M
budget activity within the same operation and mainte-
nance appropriation if the amount to be reallocated, when
added to any previous amounts reallocated from that sub-
activity for that fiscal year, is in excess of $10,000,000.
(c) O&M BUDGET ACTIVITY DEFINED.—For pur-
poses of this section, the term ‘‘O&M budget activity’’
means a budget activity within an operation and mainte-
nance appropriation of the Department of Defense for a
fiscal year.
(d) COVERED FISCAL YEARS.—This section applies
with respect to funds appropriated for fiscal years 1998,
1999, and 2000.
SEC. 313. OPERATION OF PREPOSITIONED FLEET, NA-
TIONAL TRAINING CENTER, FORT IRWIN,
CALIFORNIA.
Of the amount authorized to be appropriated pursu-
ant to section 301(1) for operation and maintenance for
the Army, $60,200,000 shall be available only to pay costs
associated with the operation of the prepositioned fleet of
equipment during training rotations at the National
Training Center, Fort Irwin, California.
SEC. 314. PROHIBITION OF IMPLEMENTATION OF TIERED
READINESS SYSTEM.
(a) PROHIBITION.—The Secretary of a military de-
partment may not implement, or be required to imple-
ment, a readiness system for units of the Armed Forces
under the jurisdiction of that Secretary under which a
military unit would be categorized into one of several cat-
egories (or ‘‘tiers’’) according to the likelihood that the
unit will be required to respond to a military conflict and
the time in which the unit will be required to respond,
if that system would have the effect of changing the meth-
ods used as of October 1, 1996, by the Armed Forces
under the jurisdiction of that Secretary for determining
the priorities for allocating to such military units funding,
personnel, equipment, equipment maintenance, and train-
ing resources, and the associated levels of readiness of
those units that result from those priorities.
(b) REPORT TO CONGRESS REQUESTING WAIVER.—
If the Secretary of Defense determines that implementa-
tion, for one or more of the Armed Forces, of a tiered
readiness system that is otherwise prohibited by sub-
section (a) would be in the national security interests of
the United States, the Secretary shall submit to the Com-
mittee on Armed Services of the Senate and the Commit-
tee on National Security of the House of Representatives
a report setting forth that determination of the Secretary,
together with the rationale for that determination, and a
request for the enactment of legislation to allow implemen-
tation of such a system.
SEC. 315. REPORTS ON TRANSFERS FROM HIGH-PRIORITY
READINESS APPROPRIATIONS.
(a) ANNUAL
AND
QUARTERLY
REPORTS
RE-
QUIRED.—Chapter 23 of title 10, United States Code, is
amended by adding at the end the following new section:
‘‘§ 483. Reports on transfers from high-priority readi-
ness appropriations
‘‘(a) ANNUAL REPORTS.—Not later than the date on
which the President submits the budget for a fiscal year
to Congress pursuant to section 1105 of title 31, the Sec-
retary of Defense shall submit to the Committee on Armed
Services and the Committee on Appropriations of the Sen-
ate and the Committee on National Security and the Com-
mittee on Appropriations of the House of Representatives
a report on transfers during the preceding fiscal year from
funds available for each covered budget activity.
‘‘(b) QUARTERLY REPORTS.—Not later than 30 days
after the end of each quarter of a fiscal year, the Secretary
of Defense shall submit to the congressional committees
specified in subsection (a) a report on transfers, during
that fiscal year quarter, from funds available for each cov-
ered budget activity.
‘‘(c) MATTERS TO BE INCLUDED.—In each report
under subsection (a) or (b), the Secretary of Defense shall
include for each covered budget activity the following:
‘‘(1) A statement, for the period covered by the
report, of—
‘‘(A) the total amount of transfers into
funds available for that activity;
‘‘(B) the total amount of transfers from
funds available for that activity; and
‘‘(C) the net amount of transfers into, or
out of, funds available for that activity.
‘‘(2) A detailed explanation of the transfers
into, and out of, funds available for that activity
during the period covered by the report.
‘‘(d) COVERED BUDGET ACTIVITY DEFINED.—In
this section, the term ‘covered budget activity’ means each
of the following:
‘‘(1) The budget activity groups (known as
‘subactivities’) within the Operating Forces budget
activity of the annual Operation and Maintenance,
Army, appropriation that are designated as follows:
‘‘(A) All subactivities under the category of
Land Forces.
‘‘(B) Land Forces Depot Maintenance.
‘‘(C) Base Support.
‘‘(D) Maintenance of Real Property.
‘‘(2) The Air Operations budget activity groups
(known as ‘subactivities’) within the Operating
Forces budget activity of the annual Operation and
Maintenance, Navy, appropriation that are des-
ignated as follows:
‘‘(A) Mission and Other Flight Operations.
‘‘(B) Fleet Air Training.
‘‘(C) Aircraft Depot Maintenance.
‘‘(D) Base Support.
‘‘(E) Maintenance of Real Property.
‘‘(3) The Ship Operations budget activity
groups (known as ‘subactivities’) within the Operat-
ing Forces budget activity of the annual Operation
and Maintenance, Navy, appropriation that are des-
ignated as follows:
‘‘(A) Mission and Other Ship Operations.
‘‘(B) Ship Operational Support and Train-
ing.
‘‘(C) Ship Depot Maintenance.
‘‘(D) Base Support.
‘‘(E) Maintenance of Real Property.
‘‘(4) The Expeditionary Forces budget activity
groups (known as ‘subactivities’) within the Operat-
ing Forces budget activity of the annual Operation
and Maintenance, Marine Corps, appropriation that
are designated as follows:
‘‘(A) Operational Forces.
‘‘(B) Depot Maintenance.
‘‘(C) Base Support.
‘‘(D) Maintenance of Real Property.
‘‘(5) The Air Operations and Combat Related
Operations budget activity groups (known as ‘sub-
activities’) within the Operating Forces budget activ-
ity of the annual Operation and Maintenance, Air
Force, appropriation that are designated as follows:
‘‘(A) Primary Combat Forces.
‘‘(B) Primary Combat Weapons.
‘‘(C) Air Operations Training.
‘‘(D) Depot Maintenance.
‘‘(E) Base Support.
‘‘(F) Maintenance of Real Property.
‘‘(6) The Mobility Operations budget activity
group (known as a ‘subactivity’) within the Mobiliza-
tion budget activity of the annual Operation and
Maintenance, Air Force, appropriation that is des-
ignated as Airlift Operations.
‘‘(e) TERMINATION.—The requirements specified in
subsections (a) and (b) shall terminate upon the submis-
sion of the annual report under subsection (a) covering
fiscal year 2000.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘483. Reports on transfers from high-priority readiness appropriations.’’.
SEC. 316. REPORT ON CHAIRMAN, JOINT CHIEFS OF STAFF
EXERCISE PROGRAM AND PARTNERSHIP FOR
PEACE PROGRAM.
(a) REPORT.—Not later than February 16, 1998, the
Secretary of Defense shall submit to the Committee on
Armed Services of the Senate and the Committee on Na-
tional Security of the House of Representatives a report
on the military exercises conducted by the Department of
Defense during fiscal years 1995, 1996, and 1997 and the
military exercises planned to be conducted during fiscal
years 1998, 1999, and 2000, under the training exercises
program known as the ‘‘CJCS Exercise Program’’ and
under the training exercises program known as the Part-
nership for Peace program.
(b) INFORMATION ON EXERCISES CONDUCTED OR TO
BE CONDUCTED.—The report under subsection (a) shall
include the following information for each such exercise,
which shall be set forth by fiscal year and shown within
fiscal year by the sponsoring command:
(1) Name of the exercise.
(2) Type, description, duration, and objectives
of the exercise
(3) Command sponsoring the exercise.
(4) Participating units, including the number of
personnel participating in each unit.
(5) For each participating unit, the percentage
of the tasks on that unit’s specification of tasks
knows as a Mission Essential Task List (or com-
parable specification, in the case of any of the
Armed Forces that do not maintain a Mission Es-
sential Task List designation) scheduled to be per-
formed as part of the exercise.
(6) The cost of the exercise to the Chairman of
the Joint Chiefs of Staff and the cost to each of the
Armed Forces participating in the exercise, with a
description of the categories of activities for which
those costs are incurred in each such case.
(7) The priority of the exercise in relation to all
other exercises planned by the sponsoring command
to be conducted during that fiscal year.
(8) In the case of an exercise conducted under
the Partnership for Peace program, the country with
which each the exercise was conducted.
(c) ASSESSMENT.—The report shall include—
(1) an assessment of the ability of each of the
Armed Forces to meet requirements of the CJCS
Exercise Program and the Partnership for Peace
program with available assets;
(2) an assessment of the training value of each
exercise covered in the report to each unit partici-
pating in the exercise, including for each such unit
an assessment of the value of the percentage under
subsection (b)(5) as an indicator of the training
value of the exercise for that unit; and
(3) options to minimize the negative effects on
operational and personnel tempo resulting from the
CJCS Exercise Program and the Partnership for
Peace program.
(d) FUNDING LIMITATION PENDING RECEIPT OF RE-
PORT.—Of the funds available for fiscal year 1998 for the
conduct of the CJSC Exercise Program, not more than
50 percent may be expended before the report under sub-
section (a) is submitted.
SEC. 317. QUARTERLY REPORTS ON EXECUTION OF OPER-
ATION AND MAINTENANCE APPROPRIATIONS.
(a) REPORT REQUIRED.—Chapter 23 of title 10,
United States Code, is amended by inserting after section
483, as added by section 315, the following new section:
‘‘§ 484. Quarterly reports on execution of operation
and maintenance appropriations
‘‘(a) REPORT REQUIRED.—Not later than 60 days
after the end of each quarter of a fiscal year, the Secretary
of Defense shall submit to the Committee on Armed Serv-
ices and the Committee on Appropriations of the Senate
and the Committee on National Security and the Commit-
tee on Appropriations of the House of Representatives a
report containing budget execution data for each budget
activity group (known as a ‘subactivity’) within the annual
operation and maintenance appropriations for the period
covered by the report. A report shall cover all preceding
quarters of the fiscal year involved.
‘‘(b) MANNER OF PRESENTING DATA.—The budget
execution data required under subsection (a) shall be dis-
played for the fiscal year involved in the same manner
used in the operation and maintenance tables contained
in the budget justification document entitled ‘O–1 Exhibit’
submitted to Congress in support of the budget of the De-
partment of Defense, as included in the budget of the
President submitted under section 1105 of title 31.
‘‘(c) REQUIRED INFORMATION.—The following infor-
mation shall be provided for each budget activity group:
‘‘(1) Amounts authorized to be appropriated.
‘‘(2) Amounts appropriated.
‘‘(3) Direct obligations.
‘‘(4) Total obligational authority.
‘‘(5) Amounts related to unbudgeted contin-
gency operations.
‘‘(6) Direct obligations related to unbudgeted
contingency operations.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 483, as added by section
315, the following new item:
‘‘484. Quarterly reports on execution of operation and maintenance appropria-
tions.’’.
Subtitle C—Civilian Personnel
SEC. 321. PAY PRACTICES WHEN OVERSEAS TEACHERS
TRANSFER TO GENERAL SCHEDULE POSI-
TIONS.
Section 5334(d) of title 5, United States Code, is
amended by striking out ‘‘is deemed increased by 20 per-
cent’’ and inserting in lieu thereof ‘‘shall be increased by
such amount as may be authorized, if any, under regula-
tions issued by the Secretary of Defense, but not to exceed
20 percent,’’.
SEC. 322. USE OF APPROVED FIRE-SAFE ACCOMMODATIONS
BY GOVERNMENT EMPLOYEES ON OFFICIAL
BUSINESS.
(a) PERCENTAGE
USE
REQUIREMENT.—Section
5707a of title 5, United States Code, is amended—
(1) by redesignating subsections (a) through (d)
as subsections (b) through (e), respectively; and
(2) by inserting after the section heading the
following new subsection:
‘‘(a)(1) For the purpose of making payments under
this chapter for lodging expenses incurred in a State, each
agency shall ensure that not less than 90 percent of the
commercial-lodging room nights for employees of that
agency for a fiscal year are booked in approved places of
public accommodation.
‘‘(2) Each agency shall establish explicit procedures
to satisfy the percentage requirement of paragraph (1).’’.
(b) DEFINITIONS.—Such section is further amended
by adding at the end the following new subsection:
‘‘(f) For purposes of this section:
‘‘(1) The term ‘agency’ does not include the
government of the District of Columbia.
‘‘(2) The term ‘approved places of public ac-
commodation’ means hotels, motels, and other places
of public accommodation that are listed by the Fed-
eral Emergency Management Agency as meeting the
requirements of the fire prevention and control
guidelines described in section 29 of the Federal
Fire Prevention and Control Act of 1974 (15 U.S.C.
2225).
‘‘(3) The term ‘State’ means any State, the
District of Columbia, the Commonwealth of Puerto
Rico, the Commonwealth of the Northern Mariana
Islands, the Trust Territory of the Pacific Islands,
the Virgin Islands, Guam, American Samoa, or any
other territory or possession of the United States.’’.
(c) CONFORMING AMENDMENTS.—Such section is
further amended—
(1) in subsection (b), as redesignated by sub-
section (a)(1)—
(A) by striking out ‘‘places of public ac-
commodation that meet the requirements of the
fire prevention and control guidelines described
in section 29 of the Federal Fire Prevention
and Control Act of 1974’’ and inserting in lieu
thereof ‘‘approved places of public accommoda-
tion’’; and
(B) by striking out ‘‘as defined in section
4 of the Federal Fire Prevention and Control
Act of 1974’’;
(2) in subsection (c), as redesignated by sub-
section (a)(1), by striking out ‘‘does not meet the re-
quirements of the fire prevention and control guide-
lines described in section 29 of the Federal Fire Pre-
vention and Control Act of 1974’’ and inserting in
lieu thereof ‘‘is not an approved place of public ac-
commodation’’; and
(3) in subsection (e), as redesignated by sub-
section (a)(1)—
(A) by striking out ‘‘encourage’’ and in-
serting in lieu thereof ‘‘facilitate the ability of ’’;
and
(B) by striking out ‘‘places of public ac-
commodation that meet the requirements of the
fire prevention and control guidelines described
in section 29 of the Federal Fire Prevention
and Control Act of 1974’’ and inserting in lieu
thereof ‘‘approved places of public accommoda-
tion’’.
(d) REPORT ON IMPLEMENTATION.—Not later than
March 31, 1998, the Administrator of General Services,
after consultation with the agencies covered by section
5707a of title 5, United States Code, shall submit to Con-
gress a report describing the procedures established by
each agency to satisfy the percentage requirement imposed
by subsection (a) of such section, as amended by this sec-
tion.
SEC. 323. VETERANS’ PREFERENCE STATUS FOR CERTAIN
VETERANS WHO SERVED ON ACTIVE DUTY
DURING THE PERSIAN GULF WAR.
(a) DEFINITION OF VETERAN FOR PURPOSES OF
PREFERENCE ELIGIBLE STATUS.—Section 2108 of title
5, United States Code, is amended—
(1) in paragraph (1)—
(A) by striking ‘‘or’’ at the end of subpara-
graph (A);
(B) by inserting ‘‘or’’ at the end of sub-
paragraph (B); and
(C) by inserting after subparagraph (B)
the following new subparagraph:
‘‘(C) served on active duty as defined by
section 101(21) of title 38 in the armed forces
during the period beginning on August 2, 1990,
and ending on January 2, 1992;’’; and
(2) in paragraph (3)(B), by inserting ‘‘or (C)’’
after ‘‘paragraph (1)(B)’’.
(b) ADDITIONAL POINTS.—Section 3309(2) of such
title is amended by striking ‘‘2108(3)(A)’’ and inserting
‘‘2108(3)(A)–(B)’’.
(c) TECHNICAL AMENDMENTS.—Section 2108(1)(B)
of such title is further amended—
(1) by striking ‘‘the date of enactment of the
Veterans’ Education and Employment Assistance
Act of 1976,’’ and inserting ‘‘October 15, 1976,’’;
and
(2) by striking ‘‘511(d) of title 10’’ and insert-
ing ‘‘12103(d) of title 10’’.
Subtitle D—Depot-Level Activities
SEC. 331. EXTENSION OF AUTHORITY FOR AVIATION DE-
POTS AND NAVAL SHIPYARDS TO ENGAGE IN
DEFENSE-RELATED PRODUCTION AND SERV-
ICES.
Section 1425(e) of the National Defense Authoriza-
tion Act for Fiscal Year 1991 (Public Law 101–510; 104
Stat. 1684) is amended by striking out ‘‘September 30,
1997’’ and inserting in lieu thereof ‘‘September 30,
1999’’.
SEC. 332. EXCLUSION OF CERTAIN LARGE MAINTENANCE
AND REPAIR PROJECTS FROM PERCENTAGE
LIMITATION ON CONTRACTING FOR DEPOT-
LEVEL MAINTENANCE.
Section 2466 of title 10, United States Code, is
amended by inserting after subsection (a) the following
new subsection:
‘‘(b) TREATMENT OF CERTAIN LARGE PROJECTS.—
If a maintenance or repair project concerning an aircraft
carrier or submarine that is contracted for performance
by non-Federal Government personnel and that accounts
for five percent or more of the funds made available in
a fiscal year to a military department or a Defense Agency
for depot-level maintenance and repair workload, the
project and the funds necessary for the project shall not
be considered when applying the percentage limitation
specified in subsection (a) to that military department or
Defense Agency.’’.
SEC. 333. RESTRICTIONS ON CONTRACTS FOR PERFORM-
ANCE OF DEPOT-LEVEL MAINTENANCE AND
REPAIR AT CERTAIN FACILITIES.
(a) DEPOT-LEVEL MAINTENANCE AND REPAIR DE-
FINED.—(1) Chapter 146 of title 10, United States Code,
is amended by inserting before section 2461 the following
new section:
‘‘§ 2460. Definition of depot-level maintenance and re-
pair
‘‘(a) IN GENERAL.—In this chapter, the term ‘depot-
level maintenance and repair’ means material maintenance
or repair requiring the overhaul, upgrading, or rebuilding
of parts, assemblies, or subassemblies, and the testing and
reclamation of equipment as necessary, regardless of the
source of funds for the maintenance or repair. The term
includes all aspects of software maintenance and such por-
tions of interim contractor support, contractor logistics
support, or any similar contractor support for the per-
formance of services that are described in the preceding
sentence.
‘‘(b) EXCEPTION.—The term does not include the
procurement of a major weapon system modification or
upgrade, except where the changes to the system are pri-
marily for safety reasons, to correct a deficiency, or to im-
prove program performance.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting before the item relating
to section 2461 the following new item:
‘‘2460. Definition of depot-level maintenance and repair.’’.
(b) RESTRICTION ON CERTAIN CONTRACTS.—Section
2469 of title 10, United States Code, is amended—
(1) in subsections (a) and (b), by striking out
‘‘or repair’’ and inserting in lieu thereof ‘‘and re-
pair’’; and
(2) by adding at the end the following new sub-
section:
‘‘(d) RESTRICTION ON CONTRACTS AT CERTAIN FA-
CILITIES.—
‘‘(1) RESTRICTION.—The Secretary of Defense
may not enter into any contract for the performance
of depot-level maintenance and repair of weapon sys-
tems or other military equipment of the Department
of Defense, or for the performance of management
functions related to depot-level maintenance and re-
pair of such systems or equipment, at any military
installation where a depot-level maintenance and re-
pair facility was approved in 1995 for closure 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). In the preceding sentence, the
term ‘military installation’ includes a former military
installation closed under the Act that was a military
installation when it was approved for closure under
the Act.
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply with respect to an installation or former in-
stallation described in such paragraph if the Sec-
retary of Defense certifies to Congress, not later
than 45 days before entering into a contract for
depot-level maintenance and repair at the installa-
tion or former installation, that—
‘‘(A) not less than 80 percent of the capac-
ity at each of the depot-level maintenance and
repair activities of the military department con-
cerned is being utilized on an ongoing basis to
perform industrial operations in support of the
depot-level maintenance and repair of weapon
systems and other military equipment of the
Department of Defense;
‘‘(B) the Secretary has determined, on the
basis of a detailed analysis (which the Secretary
shall submit to Congress with the certification),
that the total amount of the costs of the pro-
posed contract to the Government, both recur-
ring and nonrecurring and including any costs
associated with planning for and executing the
proposed contract, would be less than the costs
that would otherwise be incurred if the depot-
level maintenance and repair to be performed
under the contract were performed using equip-
ment and facilities of the Department of De-
fense;
‘‘(C) all of the information upon which the
Secretary determined that the total costs to the
Government would be less under the contract is
available for examination; and
‘‘(D) none of the depot-level maintenance
and repair to be performed under the contract
was considered, before July 1, 1995, to be a
core logistics capability of the military depart-
ment concerned pursuant to section 2464 of
this title.
‘‘(3) CAPACITY OF DEPOT-LEVEL ACTIVITIES.—
For purposes of paragraph (2)(A), the capacity of
depot-level maintenance and repair activities shall be
considered to be the same as the maximum potential
capacity identified by the Defense Base Closure and
Realignment Commission for purposes of the selec-
tion in 1995 of military installations for closure or
realignment under the Defense Base Closure and
Realignment Act of 1990, without regard, after
1995, to any limitation on the maximum number of
Federal employees (expressed as full time equivalent
employees or otherwise), Federal employment levels,
or the actual availability of equipment to support
depot-level maintenance and repair.
‘‘(4) GAO REVIEW.—At the same time that the
Secretary submits the certification and analysis to
Congress under paragraph (2), the Secretary shall
submit a copy of the certification and analysis to the
Comptroller General. The Comptroller General shall
review the analysis and the information referred to
in subparagraph (C) of paragraph (2) and, not later
than 30 days after Congress receives the certifi-
cation, submit to Congress a report containing a
statement regarding whether the Comptroller Gen-
eral concurs with the determination of the Secretary
included in the certification pursuant to subpara-
graph (B) of that paragraph.
‘‘(5) 
APPLICATION.—This 
subsection 
shall
apply with respect to any contract described in para-
graph (1) that is entered into, or proposed to be en-
tered into, after January 1, 1997.’’.
SEC. 334. CORE LOGISTICS FUNCTIONS OF DEPARTMENT
OF DEFENSE.
Section 2464(a) of title 10, United States Code, is
amended—
(1) in paragraph (1), by striking out ‘‘a logis-
tics capability (including personnel, equipment, and
facilities)’’ and inserting in lieu thereof ‘‘a core lo-
gistics capability that is Government-owned and
Government-operated (including Government person-
nel and Government-owned and Government-oper-
ated equipment and facilities)’’;
(2) in paragraph (2), by striking out ‘‘the logis-
tics’’ and inserting in lieu thereof ‘‘the core logis-
tics’’; and
(3) by adding at the end the following new
paragraphs:
‘‘(3) Those core logistics activities identified under
paragraphs (1) and (2) shall include the capability, facili-
ties, and equipment to maintain and repair all types of
weapon systems and other military equipment that are
identified by the Secretary, in consultation with the Joint
Chiefs of Staff, as necessary to enable the armed forces
to fulfill the national military strategy, including the capa-
bility and capacity to maintain and repair any new mis-
sion-essential weapon system or materiel within four years
after the system or materiel achieves initial operational ca-
pability.
‘‘(4) The Secretary of Defense shall require the per-
formance of core logistics activities identified under para-
graphs (1), (2), and (3) at Government-owned, Govern-
ment-operated facilities of the Department of Defense (in-
cluding Government-owned, Government-operated facili-
ties of a military department) and shall assign such facili-
ties sufficient workload to ensure cost efficiency and tech-
nical proficiency in peacetime while preserving the surge
capacity and reconstitution capabilities necessary to meet
the military contingencies provided for in the national
military strategy.’’.
SEC. 335. CENTERS OF INDUSTRIAL AND TECHNICAL EX-
CELLENCE.
(a) DESIGNATION AND PURPOSE.—(1) Chapter 146
of title 10, United States Code, is amended by adding at
the end the following new section:
‘‘§ 2474. Centers of Industrial and Technical Excel-
lence: designation; public-private part-
nerships
‘‘(a) DESIGNATION.—(1) The Secretary of Defense
shall designate each depot-level activity of the military de-
partments and the Defense Agencies (other than facilities
approved for closure or major realignment under the De-
fense Base Closure and Realignment Act of 1990 (part
A of title XXIX of Public Law 101–510; 10 U.S.C. 2687
note)) as a Center of Industrial and Technical Excellence
in the recognized core competencies of the activity.
‘‘(2) The Secretary shall establish a policy to encour-
age the Secretary of each military department and the
head of each Defense Agency to reengineer industrial
processes and adopt best-business practices at their depot-
level activities in connection with their core competency
requirements, so as to serve as recognized leaders in their
core competencies throughout the Department of Defense
and in the national technology and industrial base (as de-
fined in section 2500(1) of this title).
‘‘(b) PUBLIC-PRIVATE PARTNERSHIPS.—The Sec-
retary of Defense shall enable Centers of Industrial and
Technical Excellence to form public-private partnerships
for the performance of depot-level maintenance and repair
and shall encourage the use of such partnerships to maxi-
mize the utilization of the capacity at such Centers.
‘‘(c) ADDITIONAL WORK.—The policy required under
subsection (a) shall include measures to enable a private
sector entity that enters into a partnership arrangement
under subsection (b) or leases excess equipment and facili-
ties at a Center of Industrial and Technical Excellence
pursuant to section 2471 of this title to perform additional
work at the Center, subject to the limitations outlined in
subsection (b) of such section, outside of the types of work
normally assigned to the Center.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘2474. Centers of Industrial and Technical Excellence: designation; public-pri-
vate partnerships.’’.
(b) REPORTING
REQUIREMENT.—Not later than
March 1, 1998, the Secretary of Defense shall submit to
Congress a report on the policies established by the Sec-
retary pursuant to section 2474 of title 10, United States
Code, to implement the requirements of such section. The
report shall include—
(1) the details of any public-private partner-
ships entered into as of that date under subsection
(b) of such section;
(2) the details of any leases entered into as of
that date under section 2471 of such title with au-
thorized entities for dual-use (military and non-
military) purposes; and
(3) the effect that the partnerships and leases
had on capacity utilization, depot rate structures,
and readiness.
SEC. 336. PERSONNEL REDUCTIONS, ARMY DEPOTS PAR-
TICIPATING IN ARMY WORKLOAD AND PER-
FORMANCE SYSTEM.
The Secretary of the Army may not carry out a re-
duction in force of civilian employees at the five Army de-
pots participating in the demonstration and testing of the
Army Workload and Performance System until after the
date on which the Secretary submits to Congress a report
certifying that—
(1) the Army Workload and Performance Sys-
tem is fully operational; and
(2) the manpower audits being performed by
the Comptroller General, the Army Audit Agency,
and the Inspector General of the Army as of the
date of the enactment of this Act have been com-
pleted.
Subtitle E—Environmental
Provisions
SEC. 341. REVISION OF MEMBERSHIP TERMS FOR STRATE-
GIC ENVIRONMENTAL RESEARCH AND DE-
VELOPMENT 
PROGRAM 
SCIENTIFIC 
ADVI-
SORY BOARD.
Section 2904(b) of title 10, United States Code, is
amended in paragraph (4) by striking out ‘‘three’’ and in-
serting in lieu thereof ‘‘not less than two and not more
than four’’.
SEC. 342. AMENDMENTS TO AUTHORITY TO ENTER INTO
AGREEMENTS WITH OTHER AGENCIES IN
SUPPORT OF ENVIRONMENTAL TECHNOLOGY
CERTIFICATION.
(a) AUTHORITY TO ENTER INTO AGREEMENTS WITH
INDIAN TRIBES.—Section 327 of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104–
201; 110 Stat. 2483) is amended—
(1) in subsection (a), by inserting ‘‘, or with an
Indian tribe,’’ after ‘‘with an agency of a State or
local government’’;
(2) by redesignating subsection (e) as sub-
section (f); and
(3) by inserting after subsection (d) the follow-
ing new subsection:
‘‘(e) DEFINITION.—In this section, the term ‘Indian
tribe’ has the meaning given that term by section 101(36)
of the Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980 (42 U.S.C.
9601(36)).’’.
(b) ELIMINATION OF CERTAIN LIMITATION ON AU-
THORITY.—Subsection (b)(1) of such section is amended
by striking out ‘‘in carrying out its environmental restora-
tion activities’’.
SEC. 343. AUTHORIZATION TO PAY NEGOTIATED SETTLE-
MENT FOR ENVIRONMENTAL CLEANUP AT
FORMER DEPARTMENT OF DEFENSE SITES IN
CANADA.
(a) AUTHORIZATION.—To the extent provided in ap-
propriations Acts, the Secretary of Defense may pay an
amount to the Government of Canada of not more than
$100,000,000 (in fiscal year 1996 constant dollars), for
purposes of implementing the October 1996 negotiated
settlement between the United States and Canada relating
to environmental cleanup at various sites in Canada that
were formerly used by the Department of Defense.
(b) METHOD OF PAYMENT.—The amount authorized
by subsection (a) shall be paid in 10 annual payments,
with the first payment made in fiscal year 1998.
(c) FISCAL YEAR 1998 PAYMENT.—The payment
under this section for fiscal year 1998 shall be made from
amounts appropriated pursuant to section 301(5).
SEC. 344. MODIFICATIONS OF AUTHORITY TO STORE AND
DISPOSE OF NONDEFENSE TOXIC AND HAZ-
ARDOUS MATERIALS.
(a) AUTHORITY TO STORE MATERIALS OWNED BY
MEMBERS OF THE ARMED FORCES.—Section 2692(a) of
title 10, United States Code, is amended—
(1) by inserting ‘‘either’’ before ‘‘by the Depart-
ment’’; and
(2) by inserting before the period at the end the
following: ‘‘or by a member of the armed forces (or
a dependent of the member) assigned to or provided
military housing on the installation’’.
(b) ADDITIONAL EXCEPTION
TO LIMITATION
ON
STORAGE AND DISPOSAL.—Section 2692(b) of such title
is amended—
(1) by redesignating paragraphs (1) through
(9) as paragraphs (2) through (10), respectively;
and
(2) by inserting before paragraph (2) (as so re-
designated) the following new paragraph (1):
‘‘(1) the storage, treatment, or disposal of ma-
terials that will be or have been used in connection
with an activity of the Department of Defense or in
connection with a service to be performed on an in-
stallation of the Department for the benefit of the
Department;’’.
(c) MODIFICATION
TO EXCEPTION RELATING
TO
STORAGE OR DISPOSAL OF EXPLOSIVES TO ASSIST LAW
ENFORCEMENT AGENCIES.—Section 2692(b) of such title
is amended in paragraph (3) (as redesignated by sub-
section (b))—
(1) by striking out ‘‘Federal law enforcement’’
and inserting in lieu thereof ‘‘Federal, State, or local
law enforcement’’; and
(2) by striking out ‘‘Federal agency’’ and in-
serting in lieu thereof ‘‘Federal, State, or local agen-
cy’’.
(d) MODIFICATION
TO EXCEPTION RELATING
TO
STORAGE OF MATERIAL IN CONNECTION WITH USE OF
A DEFENSE FACILITY.—Section 2692(b) of such title is
amended in paragraph (9) (as redesignated by subsection
(b))—
(1) by striking out ‘‘by a private person in con-
nection with the authorized and compatible use by
that person of an industrial-type’’ and inserting in
lieu thereof ‘‘in connection with the authorized use
of a’’; and
(2) by striking out ‘‘; and’’ at the end and in-
serting in lieu thereof the following: ‘‘including the
use of such a facility for testing materiel and train-
ing personnel;’’.
(e) MODIFICATION
TO EXCEPTION RELATING
TO
TREATMENT AND DISPOSAL OF MATERIAL IN CONNEC-
TION WITH USE
OF
A DEFENSE FACILITY.—Section
2692(b) of such title is amended in paragraph (10) (as
redesignated by subsection (b))—
(1) by striking out ‘‘by a private person in con-
nection with the authorized and compatible commer-
cial use by that person of an industrial-type’’ and in-
serting in lieu thereof ‘‘in connection with the au-
thorized use of a’’;
‘‘§ 2692. Storage, treatment, and disposal of non-
defense toxic and hazardous materials’’.
(3) The item relating to section 2692 in the table of
sections at the beginning of chapter 159 of such title is
amended to read as follows:
‘‘2692. Storage, treatment, and disposal of nondefense toxic and hazardous ma-
terials.’’.
SEC. 345. REVISION OF REPORT REQUIREMENT FOR NAVY
PROGRAM TO MONITOR ECOLOGICAL EF-
FECTS OF ORGANOTIN.
Section 333(e) of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat.
2486) is amended—
(1) by striking out ‘‘June 1’’ and inserting in
lieu thereof ‘‘October 30’’;
(2) by striking out paragraphs (1) and (2);
(3) by redesignating paragraphs (3) and (4) as
paragraphs (1) and (2), respectively; and
(4) by adding at the end the following new
paragraph:
‘‘(3) A description of the present and future
use, if any, of antifouling paints containing
organotin on naval vessels.’’.
SEC. 346. PARTNERSHIPS FOR INVESTMENT IN INNOVATIVE
ENVIRONMENTAL TECHNOLOGIES.
(a) AUTHORITY.—Subject to subsection (b), the Sec-
retary of Defense may enter into a partnership with one
or more private sector entities to demonstrate and validate
innovative environmental technologies.
(b) LIMITATIONS.—The Secretary of Defense may
enter into a partnership with respect to an environmental
technology under subsection (a)—
(1) subject to such terms and conditions as the
Secretary considers appropriate and in the national
interest; and
(2) only if the Secretary determines that the
technology has clear potential to be of significant
value to the Department of Defense in carrying out
its environmental activities.
(c) FUNDING.—Under a partnership entered into
under subsection (a), the Secretary may provide funds to
the partner or partners from appropriations available to
the Department of Defense for environmental activities,
for a period of up to five years.
(d) REPORT.—In the annual report required under
section 2706(a) of title 10, United States Code, the Sec-
retary of Defense shall include the following information
with respect to partnerships entered into under this sec-
tion:
(1) The number of such partnerships.
(2) A description of the nature of the tech-
nology involved in each such partnership.
(3) A list of all partners in such partnerships.
(e) COORDINATION.—The Secretary of Defense shall
ensure that the Department of Defense coordinates with
the Administrator of the Environmental Protection Agen-
cy in any verification sponsored by the Department of
technologies demonstrated and validated by a partnership
entered into under this section.
(f) TERMINATION OF AUTHORITY.—The authority to
enter into agreements under subsection (a) shall terminate
three years after the date of the enactment of this Act.
SEC. 347. PILOT PROGRAM TO TEST AN ALTERNATIVE
TECHNOLOGY FOR ELIMINATING SOLID AND
LIQUID WASTE EMISSIONS DURING SHIP OP-
ERATIONS.
(a) DETERMINATION
BY
SECRETARY
OF
THE
NAVY.—(1) The Secretary of the Navy shall make a deter-
mination whether the alternative technology described in
paragraph (2) has the clear potential for significant bene-
fit to the Navy.
(2) The technology referred to in paragraph (1) is
an alternative technology designed to thermally treat on
shipboard all kinds of liquid and solid wastes generated
on an operating ship by means of a plasma arc melter
system that is compact, stationary, and uses a high alu-
mina refractory hearth.
(b) PILOT PROGRAM.—If the determination made
under subsection (a)(1) is in the affirmative, the Secretary
shall establish a pilot program to test the alternative tech-
nology. In conducting the test, the Secretary shall seek
to demonstrate whether the technology is valid, cost-effec-
tive, and in compliance with environmental laws and regu-
lations.
(c) FUNDING.—From funds appropriated pursuant to
the authorization in section 301(2), the Secretary of the
Navy may use not more than $4,000,000 to carry out the
pilot program.
(d) REPORT.—(1) If the determination made under
subsection (a)(1) is in the affirmative, upon completion
of the test conducted under the pilot program 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 report setting forth in de-
tail the results of the test. The report shall include rec-
ommendations on whether the alternative technology mer-
its implementation on naval vessels and such other rec-
ommendations as the Secretary considers appropriate.
(2) If the determination made under subsection
(a)(1) is in the negative, the Secretary shall submit to the
committees referred to in paragraph (1) a report contain-
ing the analysis and data used by the Secretary in making
the determination and such other recommendations as the
Secretary considers appropriate.
Subtitle F—Commissaries and Non-
appropriated Fund Instrumen-
talities
SEC. 361. REORGANIZATION OF LAWS REGARDING COM-
MISSARIES AND EXCHANGES AND OTHER MO-
RALE, WELFARE, AND RECREATION ACTIVI-
TIES.
(a) DESCRIPTION OF CHAPTER.—(1) The heading of
chapter 147 of title 10, United States Code, is amended
to read as follows:
‘‘CHAPTER 147—COMMISSARIES AND EX-
CHANGES AND OTHER MORALE, WEL-
FARE, AND RECREATION ACTIVITIES’’.
(2) The tables of chapters at the beginning of subtitle
A, and at the beginning of part IV of subtitle A, of such
title are amended by striking out the item relating to chap-
ter 147 and inserting in lieu thereof the following new
item:
‘‘147. Commissaries and Exchanges and Other Morale,
Welfare, and Recreation Activities ................. 2481’’.
(b) TRANSFER AND REDESIGNATION OF UNRELATED
PROVISIONS.—(1) Section 2481 of title 10, United States
Code, is transferred to chapter 159 of such title, inserted
after section 2685, and redesignated as section 2686.
(2) Sections 2483 and 2490 of such title are trans-
ferred to the end of subchapter III of chapter 169 of such
title and redesignated as sections 2867 and 2868, respec-
tively.
(3) Section 2491 of such title is redesignated as sec-
tion 2500.
(c) CLERICAL AMENDMENTS.—(1) The table of sec-
tions at the beginning of chapter 147 of title 10, United
States Code, is amended by striking out the items relating
to sections 2481, 2483, and 2490.
(2) The table of sections at the beginning of chapter
159 of such title is amended by inserting after the item
relating to section 2685 the following new item:
‘‘2686. Utilities and services: sale; expansion and extension of systems and fa-
cilities.’’.
(3) The table of sections at the beginning of sub-
chapter III of chapter 169 of such title is amended by
adding at the end the following new items:
‘‘2867. Sale of electricity from alternate energy and cogeneration production fa-
cilities.
‘‘2868. Utility services: furnishing for certain buildings.’’.
(4) The table of sections at the beginning of sub-
chapter I of chapter 148 of such title is amended by strik-
ing out the item relating to section 2491 and inserting
in lieu thereof the following new item:
‘‘2500. Definitions.’’.
(d) 
CONFORMING
AMENDMENTS.—(1) 
Section
2534(d) of title 10, United States Code, is amended by
striking out ‘‘section 2491(1)’’ both places it appears and
inserting in lieu thereof ‘‘section 2500(1)’’.
(2) Section 2865(b)(2) of such title is amended by
striking out ‘‘section 2483(b)(2)’’ and inserting in lieu
thereof ‘‘section 2867(b)(2)’’.
SEC. 362. MERCHANDISE AND PRICING REQUIREMENTS
FOR COMMISSARY STORES.
(a) AUTHORIZED COMMISSARY MERCHANDISE CAT-
EGORIES.—Subsection (b) of section 2486 of title 10,
United States Code, is amended—
(1) by striking out the matter preceding para-
graph (1) and inserting in lieu thereof the following:
‘‘(b) 
AUTHORIZED
COMMISSARY
MERCHANDISE
CATEGORIES.—Merchandise sold in, at, or by com-
missary stores may include items only in the follow-
ing categories:’’; and
(2) by striking out paragraph (11) and insert-
ing in lieu thereof the following new paragraph:
‘‘(11) Subject to the congressional notification
requirements of subsection (f), such other merchan-
(d) 
CONGRESSIONAL
NOTIFICATION; 
SPECIAL
RULES.—Such section is further amended by adding at
the end the following new subsections:
‘‘(f) 
CONGRESSIONAL
NOTIFICATION.—(1) 
Any
change in the pricing policies for merchandise sold in, at,
or by commissary stores, and any addition of a merchan-
dise category under subsection (a)(11), shall not take ef-
fect until the Secretary of Defense submits written notice
of the proposed change or addition to Congress and a pe-
riod of 90 days of continuous session of Congress expires
following the date on which notice was received.
‘‘(2) For purposes of this subsection, the continuity
of a session of Congress is broken only by an adjournment
of the Congress sine die, and the days on which either
House is not in session because of an adjournment or re-
cess of more than three days to a day certain are excluded
in a computation of such 90-day period.
‘‘(g) SPECIAL RULE FOR CERTAIN MERCHANDISE.—
(1) Notwithstanding the general requirement that mer-
chandise sold in, at, or by commissary stores be com-
missary store inventory, the Secretary of Defense may au-
thorize the sale of items in the merchandise categories
specified in paragraph (2) as noncommissary store inven-
tory. Subsections (c) and (d) shall not apply to the pricing
of such items of merchandise.
100
‘‘(2) The merchandise categories referred to in para-
graph (1) are as follows:
‘‘(A) Magazines and other periodicals.
‘‘(B) Tobacco products.’’.
(e) CLERICAL AND CONFORMING AMENDMENTS.—
Such section is further amended—
(1) in subsection (a), by inserting ‘‘IN GEN-
ERAL.—’’ after ‘‘(a)’’; and
(2) in subsection (e)—
(A) by inserting ‘‘SPECIAL
RULE
FOR
BRAND-NAME COMMERCIAL ITEMS.—’’ after
‘‘(e)’’; and
(B) by striking out ‘‘in commissary stores’’
both places it appears and inserting in lieu
thereof ‘‘in, at, or by commissary stores’’.
(f) EFFECT OF AMENDMENT.—(1) In the case of
merchandise categories authorized, before the date of the
enactment of this Act, for sale in, at, or by commissary
stores pursuant to regulations prescribed under subsection
(b)(11) of section 2486 of title 10, United States Code,
as in effect before such date, the Secretary of Defense may
continue to authorize the sale of such merchandise cat-
egories in, at, or by commissary stores after such date not-
withstanding the amendment made by subsection (a)(2).
However, the sale in commissary store of such merchan-
101
dise categories shall be subject to the other requirements
of such section 2486.
(2) Not later than 30 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit
to Congress a report specifying the commissary merchan-
dise categories covered by paragraph (1).
SEC. 363. LIMITATION ON NONCOMPETITIVE PROCURE-
MENT OF BRAND-NAME COMMERCIAL ITEMS
FOR RESALE IN COMMISSARY STORES.
Section 2486(e) of title 10, United States Code, as
amended by section 362(e)(2), is further amended by add-
ing at the end the following new sentence: ‘‘In determining
whether a brand name commercial item is regularly sold
outside of commissary stores, the Secretary shall consider
only sales of the item on a regional or national basis by
commercial grocery or other retail operations consisting
of multiple stores.’’.
SEC. 364. TRANSFER OF JURISDICTION OVER EXCHANGE,
COMMISSARY, AND MORALE, WELFARE, AND
RECREATION ACTIVITIES TO UNDER SEC-
RETARY OF DEFENSE (COMPTROLLER).
(a) COMPTROLLER JURISDICTION.—Section 135(c)
of title 10, United States Code, is amended—
(1) by striking out ‘‘and’’ at the end of para-
graph (4);
102
(2) by striking out the period at the end of
paragraph (5) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(6) in the areas of exchange, commissary, and
nonappropriated fund instrumentalities regarding
morale, welfare, and recreation activities.’’.
(b) CONFORMING AMENDMENT.—Section 136(b) of
title 10, United States Code, is amended by striking out
‘‘exchange, commissary, and nonappropriated fund activi-
ties,’’.
SEC. 365. PUBLIC AND PRIVATE PARTNERSHIPS TO BENE-
FIT MORALE, WELFARE, AND RECREATION
ACTIVITIES.
(a) PARTNERSHIPS AUTHORIZED.—Chapter 147 of
title 10, United States Code, as amended by section 361,
is further amended by inserting before section 2482 the
following new section:
‘‘§ 2481. Morale, welfare, and recreation activities:
leases and other contracts to benefit
‘‘(a) LEASES
AND OTHER CONTRACTS AUTHOR-
IZED.—The Secretary of Defense may authorize a non-
appropriated fund instrumentality to enter into leases, li-
censing agreements, concession agreements, and other
contracts with private persons and State or local govern-
103
ments involving real property (and related personal prop-
erty) under the control of the nonappropriated fund in-
strumentality in order to facilitate the provision of facili-
ties, goods, or services to authorized patrons of the non-
appropriated fund instrumentality.
‘‘(b) CONDITIONS.—A nonappropriated fund instru-
mentality may enter into an authorized lease or other con-
tract under subsection (a) only if the nonappropriated
fund instrumentality determines, in consultation with the
Secretary of Defense, that—
‘‘(1) the use of the property subject to the lease
or contract will provide appropriate space, or con-
tribute to the provision of goods and services, for a
morale, welfare, or recreation activity of the non-
appropriated fund instrumentality;
‘‘(2) the lease or contract will not be inconsist-
ent with and will not adversely affect the mission of
the Department or the nonappropriated fund instru-
mentality; and
‘‘(3) the lease or contract will enhance the use
of the property subject to the lease or contract.
‘‘(c) ACCESS TO RESULTING FACILITIES, GOODS, OR
SERVICES.—The use of a lease or contract under sub-
section (a) to provide facilities, goods, or services shall not
be construed to permit the use of the resulting facilities,
104
goods, or services by persons who are not authorized pa-
trons of the nonappropriated fund instrumentality that is
a party to the lease or contract.
‘‘(d) LEASE AND CONTRACT TERMS.—Subsection (b)
of section 2667 of this title shall apply to a lease or con-
tract under subsection (a), except that references to the
Secretary concerned shall be deemed to mean the non-
appropriated fund instrumentality that is a party to the
lease or contract.
‘‘(e) MONEY RENTALS.—Money rentals received pur-
suant to a lease or contract under subsection (a) shall be
treated in the same manner as other receipts of the non-
appropriated fund instrumentality that is a party to the
lease or contract, except that use of the rentals shall be
restricted to the installation at which the property covered
by the lease or contract is located.
‘‘(f) DEFINITION.—In this section, the term ‘non-
appropriated fund instrumentality’ means the Army and
Air Force Exchange Service, Navy Exchange Service Com-
mand, Marine Corps exchanges, or any other instrumen-
tality of the United States under the jurisdiction of the
armed forces which is conducted for the comfort, pleasure,
contentment, or physical or mental improvement of mem-
bers of the armed forces.’’.
105
(b) CLERICAL AMENDMENTS.—The table of sections
at the beginning of chapter 147 of such title, as amended
by section 361, is further amended by inserting before the
item relating to section 2482 the following new item:
‘‘2481. Morale, welfare, and recreation activities: leases and other contracts to
benefit.’’.
SEC. 366. TREATMENT OF CERTAIN AMOUNTS RECEIVED BY
DEFENSE COMMISSARY AGENCY.
Section 2482 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(c) TREATMENT OF CERTAIN RECEIPTS.—(1) The
Defense Commissary Agency shall deposit amounts re-
ceived from the sources specified in paragraph (2) into the
same account in which the proceeds from the adjustment
of, or surcharge on, commissary store prices authorized
by subsection (a) of section 2685 of this title are depos-
ited. In such amounts as provided in appropriations Acts,
the amounts deposited under this paragraph shall be avail-
able for the purposes described in subsection (b) of such
section.
‘‘(2) Paragraph (1) shall apply with respect to
amounts received by the Defense Commissary Agency
from—
‘‘(A) the sale of items for recycling;
‘‘(B) the disposal of excess property;
106
‘‘(C) license fees, royalties, incentive allowances,
and management and other fees; and
‘‘(D) a nonappropriated fund instrumentality of
the United States.’’.
SEC. 367. AUTHORIZED USE OF APPROPRIATED FUNDS FOR
RELOCATION OF NAVY EXCHANGE SERVICE
COMMAND.
The Navy Exchange Service Command is not re-
quired to reimburse the United States for appropriated
funds allotted to the Navy Exchange Service Command
during fiscal years 1994, 1995, and 1996 to cover costs
incurred by the Navy Exchange Service Command to relo-
cate to Virginia Beach, Virginia, and to lease headquarters
space in Virginia Beach.
Subtitle G—Other Matters
SEC. 371. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES
THAT BENEFIT DEPENDENTS OF MEMBERS
OF THE ARMED FORCES AND DEPARTMENT
OF DEFENSE CIVILIAN EMPLOYEES.
(a) CONTINUATION OF DEPARTMENT OF DEFENSE
PROGRAM FOR FISCAL YEAR 1998.—Of the amount au-
thorized to be appropriated pursuant to section 301(5) for
operation and maintenance for Defense-wide activities—
107
(1) $30,000,000 shall be available for providing
educational agencies assistance (as defined in sub-
section (d)(1)) to local educational agencies; and
(2) $5,000,000 shall be available for making
educational agencies payments (as defined in sub-
section (d)(2)) to local educational agencies.
(b) NOTIFICATION.—Not later than June 30, 1998,
the Secretary of Defense shall—
(1) notify each local educational agency that is
eligible for educational agencies assistance for fiscal
year 1998 of that agency’s eligibility for such assist-
ance and the amount of such assistance for which
that agency is eligible; and
(2) notify each local educational agency that is
eligible for an educational agencies payment for fis-
cal year 1998 of that agency’s eligibility for such
payment and the amount of the payment for which
that agency is eligible.
(c) DISBURSEMENT OF FUNDS.—The Secretary of
Defense shall disburse funds made available under para-
graphs (1) and (2) of subsection (a) not later than 30
days after the date on which notification to the eligible
local educational agencies is provided pursuant to sub-
section (b).
(d) DEFINITIONS.—In this section:
108
(1) The term ‘‘educational agencies assistance’’
means assistance authorized under section 386(b) of
the National Defense Authorization Act for Fiscal
Year 1993 (Public Law 102–484; 20 U.S.C. 7703
note).
(2) The term ‘‘educational agencies payments’’
means payments authorized under section 386(d) of
the National Defense Authorization Act for Fiscal
Year 1993 (Public Law 102–484; 20 U.S.C. 7703
note).
(3) The term ‘‘local educational agency’’ has
the meaning given that term in section 8013(9) of
the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7713(9)).
(e) TECHNICAL CORRECTION RELATING TO ORIGI-
NAL ASSISTANCE AUTHORITY.—Section 386(c)(1) of the
National Defense Authorization Act for Fiscal Year 1993
(Public Law 102–484; 20 U.S.C. 7703 note) is amend-
ed—
(1) by striking out ‘‘section 8003(a)’’ and in-
serting in lieu thereof ‘‘section 8003(a)(1)’’; and
(2) by striking out ‘‘(20 U.S.C. 7703(a))’’ and
inserting in lieu thereof ‘‘(20 U.S.C. 7703(a)(1))’’.
109
SEC. 372. CONTINUATION OF OPERATION MONGOOSE.
Section 135 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(f) The Under Secretary of Defense (Comptroller)
shall be responsible for investigating evidence of fraud,
waste, and abuse uncovered as a result of the Department
of Defense program (known as Operation Mongoose) es-
tablished to identify and prevent fraud, waste, and abuse
within the Department of Defense, particularly fraud,
waste, and abuse regarding finance and accounting mat-
ters. The program shall continue through fiscal year
2003.’’.
SEC. 373. INCLUSION OF AIR FORCE DEPOT MAINTENANCE
AS OPERATION AND MAINTENANCE BUDGET
ACTIVITY GROUP.
For fiscal year 1999 and each fiscal year thereafter,
Air Force depot-level maintenance of materiel shall be dis-
played as one or more budget activity groups (known as
‘‘subactivities’’) within the authorization request for Oper-
ation and Maintenance, Air Force, in the proposed budget
for that fiscal year submitted to Congress pursuant to sec-
tion 1105 of title 31, United States Code.
110
SEC. 374. PROGRAMS TO COMMEMORATE 50TH ANNIVER-
SARY OF MARSHALL PLAN AND KOREAN CON-
FLICT.
(a) COMMEMORATIVE PROGRAMS.—(1) The Sec-
retary of Defense may conduct a program to commemo-
rate the 50th anniversary of the Marshall Plan that pro-
vided for the reconstruction of the economies of Western
Europe following World War II.
(2) The Secretary may conduct a program to com-
memorate the 50th anniversary of the Korean conflict.
(3) In conducting such commemorative programs, the
Secretary may coordinate, support, and facilitate other
programs and activities of the Federal Government, State
and local governments, and other persons in commemora-
tion of the Marshall Plan or the Korean conflict.
(b) MARSHALL
PLAN
COMMEMORATIVE
ACTIVI-
TIES.—The commemorative programs authorized by sub-
section (a)(1) may include activities and ceremonies—
(1) to honor George C. Marshall, who developed
the Marshall Plan, for a lifetime of service to the
United States as a commissioned officer of the Army
(including service during World War II as Chief of
Staff of the Army with the rank of General of the
Army) and as Secretary of Defense and Secretary of
State at the beginning of the Cold War; and
111
(2) to provide the people of the United States
with a clear understanding and appreciation of the
significance of Marshall Plan.
(c) KOREAN CONFLICT COMMEMORATIVE ACTIVI-
TIES.—The commemorative programs authorized by sub-
section (a)(2) may include activities and ceremonies—
(1) to provide the people of the United States
with a clear understanding and appreciation of the
lessons and history of the Korean conflict;
(2) to thank and honor veterans of the Korean
conflict and their families;
(3) to pay tribute to the sacrifices and contribu-
tions made on the home front by the people of the
United States during the Korean conflict;
(4) to highlight advances in technology, science,
and medicine related to military research conducted
during the Korean conflict;
(5) to recognize the contributions and sacrifices
made by the allies of the United States in the Ko-
rean conflict; and
(6) to highlight the role of the Armed Forces of
the United States, then and now, in maintaining
world peace through strength.
(d) NAMES AND SYMBOLS.—The Secretary of De-
fense shall have the sole and exclusive right to use the
112
names ‘‘The Department of Defense 50th Anniversary of
the Marshall Plan’’, ‘‘50th Anniversary of the Marshall
Plan’’, and ‘‘The Korean Conflict Commemoration’’, and
such seal, emblems, and badges incorporating such names
as the Secretary may lawfully adopt. Nothing in this sec-
tion may be construed to supersede rights that are estab-
lished or vested before the date of the enactment of this
Act.
(e) COMMEMORATIVE ACCOUNT.—(1) There is estab-
lished in the Treasury an account to be known as the ‘‘De-
partment of Defense 50th Anniversary of the Marshall
Plan and Korean Conflict Commemoration Account’’,
which shall be administered by the Secretary of Defense
as a single account. There shall be deposited into the ac-
count all proceeds derived from the Secretary’s use of the
exclusive rights described in subsection (d). The Secretary
may use funds in the account only for the purpose of con-
ducting the commemorative programs authorized by sub-
section (a).
(2) Not later than 60 days after completion of all ac-
tivities and ceremonies conducted as part of the com-
memorative programs, the Secretary shall submit to Con-
gress a report containing an accounting of all the funds
deposited into and expended from the account or otherwise
expended under this section, and of any funds remaining
113
in the account. Unobligated funds remaining in the ac-
count on that date shall be held in the account until trans-
ferred by law.
(f) ACCEPTANCE
OF VOLUNTARY SERVICES.—(1)
Notwithstanding section 1342 of title 31, United States
Code, the Secretary of Defense may accept from any per-
son voluntary services to be provided in furtherance of the
commemorative programs authorized by subsection (a).
(2) A person providing voluntary services under this
subsection shall be considered to be a Federal employee
for purposes of chapter 81 of title 5, United States Code,
relating to compensation for work-related injuries. The
person shall also be considered a special governmental em-
ployee for purposes of standards of conduct and sections
202, 203, 205, 207, 208, and 209 of title 18, United
states Code. A person who is not otherwise employed by
the Federal Government shall not be considered to be a
Federal employee for any other purpose by reason of the
provision of voluntary services under this subsection.
(3) The Secretary may provide for reimbursement of
incidental expenses incurred by a person providing vol-
untary services under this subsection. The Secretary shall
determine which expenses are eligible for reimbursement
under this paragraph.
114
SEC. 375. PROHIBITION ON USE OF SPECIAL OPERATIONS
COMMAND BUDGET FOR BASE OPERATION
SUPPORT.
Section 167(f) of title 10, United States Code, is
amended.—
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(2) by inserting ‘‘(1)’’ before ‘‘In addition’’; and
(3) by adding at the end the following new
paragraph:
‘‘(2) Funds provided for the special operations com-
mand as part of the budget for the special operations com-
mand under paragraph (1) may not be used to cover base
operation support expenses incurred at a military installa-
tion.’’.
SEC. 376. CONTINUATION AND EXPANSION OF DEMONSTRA-
TION 
PROGRAM 
TO 
IDENTIFY 
OVERPAY-
MENTS MADE TO VENDORS.
(a) SCOPE OF PROGRAM.—Section 354 of the Na-
tional Defense Authorization Act for Fiscal Year 1996
(Public Law 104–106; 110 Stat. 268; 10 U.S.C. 2461
note) is amended—
(1) in subsection (a), by striking out the second
sentence; and
(2) in subsection (b)(1), by striking out ‘‘of the
Defense Logistics Agency that relate to (at least)
115
fiscal years 1993, 1994, and 1995’’ and inserting in
lieu thereof ‘‘relating to fiscal years after fiscal year
1993 of the working-capital funds and industrial,
commercial, and support type activities managed
through the Defense Business Operations Fund, ex-
cept the Defense Logistics Agency to the extent such
records have already been audited’’.
(b) COLLECTION
METHOD; CONTRACTOR
PAY-
MENTS.—Such section is further amended by striking out
subsections (d) and (e) and inserting in lieu thereof the
following new subsections:
‘‘(d) COLLECTION METHOD.—In the case of an over-
payment to a vendor identified under the demonstration
program, the Secretary shall require the use of the proce-
dures specified in section 32.611 of the Federal Acquisi-
tion Regulation, regarding a setoff against existing in-
voices for payment to the vendor, as the first method by
which the Department shall seek to recover the amount
of the overpayment (and any applicable interest and pen-
alties) from the vendor.
‘‘(e) FEES FOR CONTRACTOR.—The Secretary shall
pay to the contractor under the contract entered into
under the demonstration program an amount not to ex-
ceed 25 percent of the total amount recovered by the De-
partment (through the collection of overpayments and the
116
use of setoffs) solely on the basis of information obtained
as a result of the audits performed by the contractor under
the program. When an overpayment is recovered through
the use of a setoff, amounts for the required payment to
the contractor shall be derived from funds available to the
working-capital fund or industrial, commercial, or support
type activity for which the overpayment is recovered.’’.
SEC. 377. APPLICABILITY OF FEDERAL PRINTING REQUIRE-
MENTS TO DEFENSE AUTOMATED PRINTING
SERVICE.
(a) Subchapter I of chapter 8 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 195. Defense Automated Printing Service: applica-
bility of Federal printing requirements
‘‘The Defense Automated Printing Service shall com-
ply fully with the requirements of chapter 5 of title 44
relating to the production and procurement of printing,
binding, and blank-book work.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such subchapter is amended by adding
at the end the following new item:
‘‘195. Defense Automated Printing Service: applicability of Federal printing re-
quirements.’’.
117
SEC. 378. BASE OPERATIONS SUPPORT FOR MILITARY IN-
STALLATIONS ON GUAM.
(a) CONTRACTOR USE OF NONIMMIGRANT ALIENS.—
Each contract for base operations support to be performed
on Guam shall contain a condition that work under the
contract may not be performed by any alien who is issued
a visa or otherwise provided nonimmigrant status under
section 101(a)(15)(H)(ii) of the Immigration and Nation-
ality Act (8 U.S.C. 1101(a)(15)(H)(ii)).
(b) APPLICATION OF SECTION.—This section shall
apply to contracts entered into, amended, or otherwise
modified on or after the date of the enactment of this Act.
TITLE IV—PERSONNEL
AUTHORIZATIONS
Subtitle A—Active Forces
SEC. 401. END STRENGTHS FOR ACTIVE FORCES.
The Armed Forces are authorized strengths for active
duty personnel as of September 30, 1998, as follows:
(1) The Army, 495,000.
(2) The Navy, 395,000.
(3) The Marine Corps, 174,000.
(4) The Air Force, 381,000.
118
Subtitle B—Reserve Forces
SEC. 411. END STRENGTHS FOR SELECTED RESERVE.
(a) IN GENERAL.—The Armed Forces are authorized
strengths for Selected Reserve personnel of the reserve
components as of September 30, 1998, as follows:
(1) The Army National Guard of the United
States, 366,516.
(2) The Army Reserve, 208,000.
(3) The Naval Reserve, 94,294.
(4) The Marine Corps Reserve, 42,000.
(5) The Air National Guard of the United
States, 107,377.
(6) The Air Force Reserve, 73,431.
(7) The Coast Guard Reserve, 8,000.
(b) WAIVER AUTHORITY.—The Secretary of Defense
may vary the end strength authorized by subsection (a)
by not more than 2 percent.
(c) ADJUSTMENTS.—The end strengths prescribed by
subsection (a) for the Selected Reserve of any reserve com-
ponent shall be proportionately reduced by—
(1) the total authorized strength of units orga-
nized to serve as units of the Selected Reserve of
such component which are on active duty (other
than for training) at the end of the fiscal year; and
121
SEC. 414. INCREASE IN NUMBER OF MEMBERS IN CERTAIN
GRADES AUTHORIZED TO SERVE ON ACTIVE
DUTY IN SUPPORT OF THE RESERVES.
(a) OFFICERS.—The table in section 12011(a) of title
10, United States Code, is amended to read as follows:
‘‘Grade
Army
Navy
Air
Force
Marine
Corps
Major or Lieutenant Commander ...........
3,219
1,071
673
140
Lieutenant Colonel or Commander .........
1,524
520
672
Colonel or Navy Captain .........................
437
188
274
30’’.
(b) SENIOR ENLISTED MEMBERS.—The table in sec-
tion 12012(a) of such title is amended to read as follows:
‘‘Grade
Army
Navy
Air
Force
Marine
Corps
E–9 .........................................................
627
202
371
E–8 .........................................................
2,585
429
900
94’’.
Subtitle C—Authorization of
Appropriations
SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILI-
TARY PERSONNEL.
There is hereby authorized to be appropriated to the
Department of Defense for military personnel for fiscal
year 1998 a total of $69,539,862,000. The authorization
in the preceding sentence supersedes any other authoriza-
tion of appropriations (definite or indefinite) for such pur-
pose for fiscal year 1998.
122
TITLE V—MILITARY PERSONNEL
POLICY
Subtitle A—Officer Personnel
Policy
SEC. 501. LIMITATION ON NUMBER OF GENERAL AND FLAG
OFFICERS WHO MAY SERVE IN POSITIONS
OUTSIDE THEIR OWN SERVICE.
(a) IN GENERAL.—Chapter 41 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 721. General and flag officers: limitation on ap-
pointments, assignments, details, and du-
ties outside an officer’s own service
‘‘(a) LIMITATION.—An officer described in subsection
(b) may not be appointed, assigned, or detailed for a pe-
riod in excess of 90 days to a position external to that
officer’s armed force if, immediately following such ap-
pointment, assignment, or detail, the number of officers
described in subsection (b) serving in positions external
to such officers’ armed force for a period in excess of 90
days would be in excess of 24.5 percent of the total num-
ber of such officers.
‘‘(b) COVERED OFFICERS.—The officers covered by
subsection (a), and to be counted for the purposes of the
limitation in that subsection, are the following:
123
‘‘(1) Any general or flag officer counted for
purposes of section 526(a) of this title.
‘‘(2) Any general or flag officer serving in a
joint duty assignment position designated by the
Chairman of the Joint Chiefs of Staff under section
526(b) of this title.
‘‘(3) Any colonel or Navy captain counted for
purposes of section 777(d)(1) of this title.
‘‘(c) EXTERNAL POSITIONS.—For purposes of this
section, the following positions shall be considered to be
external to an officer’s armed force:
‘‘(1) Any position (including a position in joint
education) that is a joint duty assignment for pur-
poses of chapter 38 of this title.
‘‘(2) Any position in the Office of the Secretary
of Defense, a Defense Agency, or a Department of
Defense Field Activity.
‘‘(3) Any position in the Joint Chiefs of Staff,
the Joint Staff, or the headquarters of a combatant
command (as defined in chapter 6 of this title).
‘‘(4) Any position in the National Guard Bu-
reau.
‘‘(5) Any position outside the Department of
Defense, including any position in the headquarters
of the North Atlantic Treaty Organization or any
124
other international military command, any combined
or multinational command, or military mission.
‘‘(d) ASSIGNMENTS, ETC. FOR PERIODS IN EXCESS
OF 90 DAYS.—For purposes of this section, the appoint-
ment, assignment, or detail of an officer to a position shall
be considered to be for a period in excess of 90 days unless
the appointment, assignment, or detail specifies that it is
made a period of 90 days or less.
‘‘(e) WAIVER DURING PERIOD OF WAR OR NATIONAL
EMERGENCY.—The President may suspend the operation
of this section during any period of war or of national
emergency declared by Congress or the President.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘721. General and flag officers: limitation on appointments, assignments, de-
tails, and duties outside an officer’s own service.’’.
SEC. 502. EXCLUSION OF CERTAIN RETIRED OFFICERS
FROM LIMITATION ON PERIOD OF RECALL
TO ACTIVE DUTY.
Effective October 1, 1997, section 688(e) of title 10,
United States Code, is amended—
(1) by inserting ‘‘(1)’’ before ‘‘A member’’; and
(2) adding at the end the following new para-
graph:
125
‘‘(2) Paragraph (1) shall not apply to the following
officers:
‘‘(A) A chaplain who is assigned to duty as a
chaplain for the period of active duty to which or-
dered.
‘‘(B) A health care professional (as character-
ized by the Secretary concerned) who is assigned to
duty as a health care professional for the period of
active duty to which ordered.
‘‘(C) An officer assigned to duty with the Amer-
ican Battle Monuments Commission for the period
of active duty to which ordered.’’.
SEC. 503. CLARIFICATION OF OFFICERS ELIGIBLE FOR
CONSIDERATION BY SELECTION BOARDS.
(a) OFFICERS ON THE ACTIVE-DUTY LIST.—Section
619(d) of title 10, United States Code, is amended—
(1) by striking out ‘‘grade—’’ in the matter
preceding paragraph (1) and inserting in lieu thereof
‘‘grade any of the following officers:’’;
(2) in paragraph (1)—
(A) by striking out ‘‘an officer’’ and insert-
ing in lieu thereof ‘‘An officer’’; and
(B) by striking out ‘‘; or’’ at the end and
inserting in lieu thereof a period; and
126
(3) by redesignating paragraph (2) as para-
graph (3) and in that paragraph striking out ‘‘an of-
ficer’’ and inserting in lieu thereof ‘‘An officer’’; and
(4) by inserting after paragraph (1) the follow-
ing new paragraph (2):
‘‘(2) An officer who is recommended for pro-
motion to that grade in the report of an earlier se-
lection board convened under that section, in the
case of such a report that has not yet been approved
by the President.’’.
(b) OFFICERS
ON
THE RESERVE ACTIVE-STATUS
LIST.—Section 14301(c) of such title is amended—
(1) by striking out ‘‘grade—’’ in the matter
preceding paragraph (1) and inserting in lieu thereof
‘‘grade any of the following officers:’’;
(2) by striking out ‘‘an officer’’ in each of para-
graphs (1), (2), and (3) and inserting in lieu thereof
‘‘An officer’’;
(3) by striking out the semicolon at the end of
paragraph (1) and inserting in lieu thereof a period;
(4) by striking out ‘‘; or’’ at the end of para-
graph (2) and inserting in lieu thereof a period;
(5) by redesignating paragraphs (2) and (3), as
so amended, as paragraphs (3) and (4), respectively,
and in each such paragraph striking out ‘‘the next
127
higher grade’’ and inserting in lieu thereof ‘‘that
grade’’; and
(6) by inserting after paragraph (1) the follow-
ing new paragraph (2):
‘‘(2) An officer who is recommended for pro-
motion to that grade in the report of an earlier se-
lection board convened under a provision referred to
in paragraph (1), in the case of such a report that
has not yet been approved by the President.’’.
(c) CLARIFYING AMENDMENTS.—Paragraphs (3) and
(4) of section 14301(c) of such title, as redesignated and
amended by subsection (b), are each amended by inserting
before the period at the end the following: ‘‘, if that nomi-
nation is pending before the Senate’’.
SEC. 504. AUTHORITY TO DEFER MANDATORY RETIREMENT
FOR AGE OF OFFICERS SERVING AS CHAP-
LAINS.
(a) AUTHORITY FOR DEFERRAL OF RETIREMENT
FOR CHAPLAINS PROVIDING DIRECT SUPPORT TO UNITS
OR INSTALLATIONS.—Subsection (c) of section 1251 of
title 10, United States Code, is amended—
(1) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively; and
(2) by inserting after paragraph (1) the follow-
ing new paragraph (2):
128
‘‘(2) The Secretary concerned may defer the retire-
ment under subsection (a) of an officer who is appointed
or designated as a chaplain if during the period of the
deferment the officer will be performing duties consisting
primarily of providing direct support as a chaplain to units
or installations.’’.
(b) AUTHORITY FOR DEFERRAL OF RETIREMENT
FOR CHIEF AND DEPUTY CHIEF OF CHAPLAINS.—Such
section is further amended by adding at the end the fol-
lowing new subsection:
‘‘(d) The Secretary concerned may defer the retire-
ment under subsection (a) of an officer who is the Chief
of Chaplains or Deputy Chief of Chaplains of that officer’s
armed force. Such a deferment may not extend beyond the
first day of the month following the month in which the
officer becomes 68 years of age.’’.
(c) QUALIFICATION FOR SERVICE AS NAVY CHIEF OF
CHAPLAINS OR DEPUTY CHIEF OF CHAPLAINS.—(1) Sec-
tion 5142(b) of such title is amended by striking out ‘‘,
who are not on the retired list,’’.
(2) Section 5142a of such title is amended by striking
out ‘‘, who is not on the retired list,’’.
129
Subtitle B—Reserve Component
Matters
SEC. 511. INDIVIDUAL READY RESERVE ACTIVATION AU-
THORITY.
(a) IRR MEMBERS SUBJECT TO ORDER TO ACTIVE
DUTY OTHER THAN DURING WAR OR NATIONAL EMER-
GENCY.—Section 10144 of title 10, United States Code,
is amended—
(1) by inserting ‘‘(a)’’ before ‘‘Within the Ready
Reserve’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b)(1) Within the Individual Ready Reserve of each
reserve component there is a category of members, as des-
ignated by the Secretary concerned, who are subject to
being ordered to active duty involuntarily in accordance
with section 12304 of this title. A member may not be
placed in that mobilization category unless—
‘‘(A) the member volunteers for that category;
and
‘‘(B) the member is selected for that category
by the Secretary concerned, based upon the needs of
the service and the grade and military skills of that
member.
130
‘‘(2) A member of the Individual Ready Reserve may
not be carried in such mobilization category of members
after the end of the 24-month period beginning on the date
of the separation of the member from active service.
‘‘(3) The Secretary shall designate the grades and
military skills or specialities of members to be eligible for
placement in such mobilization category.
‘‘(4) A member in such mobilization category shall
be eligible for benefits (other than pay and training) as
are normally available to members of the Selected Reserve,
as determined by the Secretary of Defense.’’.
(b) CRITERIA FOR ORDERING TO ACTIVE DUTY.—
Subsection (a) of section 12304 of title 10, United States
Code, is amended by inserting after ‘‘of this title),’’ the
following: ‘‘or any member in the Individual Ready Re-
serve mobilization category and designated as essential
under regulations prescribed by the Secretary concerned,’’.
(c) MAXIMUM NUMBER.—Subsection (c) of such sec-
tion is amended—
(1) by inserting ‘‘and the Individual Ready Re-
serve’’ after ‘‘Selected Reserve’’; and
(2) by inserting ‘‘, of whom not more than
30,000 may be members of the Individual Ready Re-
serve’’ before the period at the end.
131
(d) CONFORMING AMENDMENTS.—Such section is
further amended—
(1) in subsection (f), by inserting ‘‘or Individual
Ready Reserve’’ after ‘‘Selected Reserve’’;
(2) in subsection (g), by inserting ‘‘, or member
of the Individual Ready Reserve,’’ after ‘‘to serve as
a unit’’; and
(3) by adding at the end the following new sub-
section:
‘‘(i) For purposes of this section, the term ‘Individual
Ready Reserve mobilization category’ means, in the case
of any reserve component, the category of the Individual
Ready Reserve described in section 10144(b) of this
title.’’.
(e) CLERICAL AMENDMENTS.—(1) The heading of
such section is amended to read as follows:
‘‘§ 12304. Selected Reserve and certain Individual
Ready Reserve members; order to active
duty other than during war or national
emergency’’.
(2) The item relating to section 12304 in the table
of sections at the beginning of chapter 1209 of such title
is amended to read as follows:
‘‘12304. Selected Reserve and certain Individual Ready Reserve members; order
to active duty other than during war or national emergency.’’.
132
SEC. 512. TERMINATION OF MOBILIZATION INCOME INSUR-
ANCE PROGRAM.
(a) IN GENERAL.—Chapter 1214 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 12533. Termination of program
‘‘(a) IN GENERAL.—The Secretary shall terminate
the insurance program in accordance with this section.
‘‘(b) TERMINATION OF NEW ENROLLMENTS.—The
Secretary may not enroll a member of the Ready Reserve
for coverage under the insurance program after the date
of the enactment of this section.
‘‘(c) TERMINATION OF COVERAGE.—(1) The enroll-
ment under the insurance program of insured members
other than insured members described in paragraph (2)
is terminated as of the date of the enactment of this sec-
tion. The enrollment of an insured member described in
paragraph (2) is terminated as of the date of the termi-
nation of the period of covered service of that member de-
scribed in that paragraph.
‘‘(2) An insured member described in this paragraph
is an insured member who on the date of the enactment
of this section is serving on covered service for a period
of service, or has been issued an order directing the per-
formance of covered service, that satisfies or would satisfy
the entitlement-to-benefits provisions of this chapter.
133
‘‘(d) TERMINATION OF PAYMENT OF BENEFITS.—
The Secretary may not make any benefit payment under
the insurance program after the date of the enactment of
this section other than to an insured member who on that
date (1) is serving on an order to covered service, (2) has
been issued an order directing performance of covered
service, or (3) has served on covered service before that
date for which benefits under the program have not been
paid to the member.
‘‘(e) TERMINATION OF INSURANCE FUND.—The Sec-
retary shall close the Fund not later than 60 days after
the date on which the last benefit payment from the Fund
is made. Any amount remaining in the Fund when closed
shall be covered into the Treasury as miscellaneous re-
ceipts.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘12533. Termination of program.’’.
134
SEC. 513. CORRECTION OF INEQUITIES IN MEDICAL AND
DENTAL CARE AND DEATH AND DISABILITY
BENEFITS FOR RESERVE MEMBERS WHO
INCUR OR AGGRAVATE AN ILLNESS IN THE
LINE OF DUTY.
(a) MEDICAL
AND DENTAL CARE
FOR DEPEND-
ENTS.—Section 1076(a)(2) of title 10, United States
Code, is amended—
(1) by striking out ‘‘or’’ at the end of subpara-
graph (A);
(2) by striking out the period at the end of sub-
paragraph (B) and inserting in lieu thereof ‘‘; or’’;
and
(3) by adding at the end the following new sub-
paragraph:
‘‘(C) who incurs or aggravates an injury or ill-
ness in the line of duty while serving on active duty
for a period of 30 days or less and whose orders are
subsequently modified to extend the period of active
duty to a period of more than 30 days.’’.
(b) 
MEDICAL
AND
DENTAL
CARE.—Section
1074a(a)(3) of such title is amended by inserting ‘‘while
remaining overnight immediately before the commence-
ment of inactive-duty training, or’’ after ‘‘in the line of
duty’’.
135
(c) ELIGIBILITY
FOR DISABILITY RETIREMENT.—
Section 1204(2)(C) of such title is amended by inserting
‘‘while remaining overnight immediately before the com-
mencement of inactive-duty training, or’’ after ‘‘aggra-
vated’’.
(d) ELIGIBILITY
FOR DISABILITY SEPARATION.—
Section 1206 of such title is amended—
(1) by redesignating paragraphs (2), (3), and
(4) as paragraphs (3), (4), and (5) respectively; and
(2) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) the disability was incurred in the line of
duty as a result of—
‘‘(A) performing active duty or inactive-
duty training;
‘‘(B) traveling directly to or from the place
at which such duty is performed; or
‘‘(C) an injury, illness, or disease incurred
or aggravated while remaining overnight imme-
diately before the commencement of inactive-
duty training, or while remaining overnight be-
tween successive periods of inactive-duty train-
ing, at or in the vicinity of the site of the inac-
tive-duty training, if the site is outside reason-
136
able commuting distance of the member’s resi-
dence;’’.
(e) RECOVERY, CARE, AND DISPOSITION
OF RE-
MAINS.—Section 1481(a)(2)(D) of such title is amended
by inserting ‘‘remaining overnight immediately before the
commencement of inactive-duty training, or’’ after ‘‘(D)’’.
(f) ENTITLEMENT TO BASIC PAY.—Section 204 of
title 37, United States Code, is amended by inserting
‘‘while remaining overnight immediately before the com-
mencement of inactive-duty training, or’’ in subsections
(g)(1)(D) and (h)(1)(D) after ‘‘in line of duty’’.
(g) COMPENSATION
FOR INACTIVE-DUTY TRAIN-
ING.—Section 206(a)(3)(C) of such title is amended by
inserting ‘‘while remaining overnight immediately before
the commencement of inactive-duty training, or’’ after ‘‘in
line of duty’’.
SEC. 514. TIME-IN-GRADE REQUIREMENTS FOR RESERVE
COMMISSIONED OFFICERS RETIRED DURING
FORCE DRAWDOWN PERIOD.
(a) AUTHORITY COMPARABLE TO ACTIVE-DUTY LIST
OFFICERS.—Subsection (d)(3) of section 1370 of title 10,
United States Code, is amended by adding at the end the
following new subparagraph:
‘‘(F) The Secretary of Defense may authorize the
Secretary of a military department to reduce the three-
137
year period specified in subparagraph (A) to a period of
not less than two years in the case of retirements effective
during the period beginning on the date of the enactment
of this subparagraph and ending on September 30, 1999.
The number of officers in an armed force in a grade for
whom a reduction is made during any fiscal year in the
period of service-in-grade otherwise required under this
paragraph may not exceed the number equal to two per-
cent of the authorized reserve active status strength for
that fiscal year for officers of that armed force in that
grade.’’.
(b) TECHNICAL AMENDMENTS.—Such section is fur-
ther amended—
(1) in subsection (a)(2)(A), by inserting ‘‘of’’
after ‘‘reduce such period to a period’’; and
(2) in subsection (d)(1), by striking out ‘‘chap-
ter 1225’’ and inserting in lieu thereof ‘‘chapter
1223’’.
SEC. 515. AUTHORITY TO PERMIT NON-UNIT ASSIGNED OF-
FICERS TO BE CONSIDERED BY VACANCY
PROMOTION BOARD TO GENERAL OFFICER
GRADES.
(a) CONVENING OF SELECTION BOARDS.—Section
14101(a)(2) of title 10, United States Code, is amended
by striking out ‘‘(except in the case of a board convened
138
to consider officers as provided in section 14301(e) of this
title).’’.
(b) ELIGIBILITY FOR CONSIDERATION OF CERTAIN
ARMY OFFICERS.—Section 14301 of such title is amend-
ed—
(1) by striking out subsection (e); and
(2) by redesignating subsections (f) and (g) as
subsections (e) and (f), respectively.
(c) 
GENERAL
OFFICER
PROMOTIONS.—Section
14308 of such title is amended—
(1) in subsection (e)(2), by inserting ‘‘a grade
below colonel in’’ after ‘‘(2) an officer in’’; and
(2) in subsection (g)—
(A) by inserting ‘‘or the Air Force’’ in the
first sentence after ‘‘of the Army’’ the first
place it appears;
(B) by striking out ‘‘in that grade’’ in the
first sentence and all that follows through ‘‘Sec-
retary of the Army’’ and inserting in lieu there-
of ‘‘in the Army Reserve or the Air Force Re-
serve, as the case may be, in that grade’’; and
(C) by striking out the second sentence.
(d) VACANCY PROMOTIONS.—Section 14315(b)(1) of
such title is amended by striking out ‘‘the duties’’ in clause
(A) and all that follows through ‘‘as a unit,’’ and inserting
139
in lieu thereof ‘‘duties of a general officer of the next high-
er reserve grade in the Army Reserve,’’.
SEC. 516. GRADE REQUIREMENT FOR OFFICERS ELIGIBLE
TO SERVE ON INVOLUNTARY SEPARATION
BOARDS.
Section 14906(a)(2) of title 10, United States Code,
is amended by striking out ‘‘a grade above lieutenant colo-
nel or commander’’ and inserting in lieu thereof ‘‘the
grade of lieutenant colonel or commander or a higher
grade’’.
SEC. 517. LIMITATION ON USE OF AIR FORCE RESERVE AGR
PERSONNEL FOR AIR FORCE BASE SECURITY
FUNCTIONS.
(a) LIMITATION.—The Secretary of the Air Force
may not use members of the Air Force Reserve who are
AGR personnel for the performance of force protection,
base security, or security police functions at an Air Force
facility in the United States until six months after the date
on which the Secretary submits to Congress a report on
such use of AGR personnel.
(b) MATTERS TO BE INCLUDED IN REPORT.—The
report under subsection (a) shall include the following:
(1) A statement of the planned scope, including
each planned location, of such use of AGR personnel
140
during the year in which the report is submitted and
each of the five subsequent years.
(2) A detailed rationale for, and evaluation of,
the cost effectiveness of the use of AGR personnel
to perform such functions at Air Force facilities in
the United States compared to the use of Depart-
ment of Defense civilian personnel or contractor per-
sonnel for the performance of these functions at
those facilities.
(3) A plan, including a cost estimate, for the re-
employment, conversion to AGR status, or retire-
ment of civilian employees and military technicians
who are displaced by the use of Air Force Reserve
AGR personnel to perform those functions.
(c) AGR PERSONNEL DEFINED.—For the purposes
of this section, the term ‘‘AGR personnel’’ means members
of the Air Force Reserve who are on active duty (other
than for training) in connection with organizing, admin-
istering, recruiting, instructing, or training the Air Force
Reserve.
141
Subtitle C—Military Technicians
SEC. 521. AUTHORITY TO RETAIN ON THE RESERVE AC-
TIVE-STATUS LIST UNTIL AGE 60 MILITARY
TECHNICIANS IN THE GRADE OF BRIGADIER
GENERAL.
(a) RETENTION.—Section 14702(a) of title 10, Unit-
ed States Code, is amended—
(1) by striking out ‘‘section 14506 or 14507’’
and inserting in lieu thereof ‘‘section 14506, 14507,
or 14508’’; and
(2) by striking out ‘‘or colonel’’ and inserting in
lieu thereof ‘‘colonel, or brigadier general’’.
(b) TECHNICAL AMENDMENT.—Section 14508(c) of
such title is amended by striking out ‘‘not later than the
date on which the officer becomes 60 years of age’’ and
inserting in lieu thereof ‘‘not later than the last day of
the month in which the officer becomes 60 years of age’’.
SEC. 522. MILITARY TECHNICIANS (DUAL STATUS).
(a) DEFINITION.—Subsection (a) of section 10216 of
title 10, United States Code, is amended to read as fol-
lows:
‘‘(a) IN GENERAL.—(1) For purposes of this section
and any other provision of law, a military technician (dual
status) is a Federal civilian employee who—
142
‘‘(A) is employed under section 3101 of title 5
or section 709 of title 32;
‘‘(B) is required as a condition of that employ-
ment to maintain membership in the Selected Re-
serve; and
‘‘(C) is assigned to a position as a technician in
the administration and training of the Selected Re-
serve or in the maintenance and repair of supplies
or equipment issued to the Selected Reserve or the
armed forces.
‘‘(2) Military technicians (dual status) shall be au-
thorized and accounted for as a separate category of civil-
ian employees.’’.
(b) UNIT MEMBERSHIP
AND DUAL-STATUS RE-
QUIREMENT.—Subsection (d) of such section is amended
to read as follows:
‘‘(d) UNIT MEMBERSHIP REQUIREMENT.—(1) Un-
less specifically exempted by law, each individual who is
hired as a military technician (dual status) after Decem-
ber 1, 1995, shall be required as a condition of that em-
ployment to maintain membership in—
‘‘(A) the unit of the Selected Reserve by which
the individual is employed as a military technician;
or
143
‘‘(B) a unit of the Selected Reserve that the in-
dividual is employed as a military technician to sup-
port.
‘‘(2) Paragraph (1) does not apply to a military tech-
nician (dual status) who is employed by the Army Reserve
in an area other than Army Reserve troop program units.
‘‘(e) DUAL-STATUS REQUIREMENT.—(1) Funds ap-
propriated for the Department of Defense may not (except
as provided in paragraph (2)) be used for compensation
as a military technician of any individual hired as a mili-
tary technician after February 10, 1996, who is no longer
a member of the Selected Reserve.
‘‘(2) The Secretary concerned may pay compensation
described in paragraph (1) to an individual described in
that paragraph who is no longer a member of the Selected
Reserve for a period not to exceed six months following
the individual’s loss of membership in the Selected Reserve
if the Secretary determines such loss of membership was
not due to the failure of that individual to meet military
standards.’’.
(c) NATIONAL
GUARD
DUAL-STATUS
REQUIRE-
MENT.—Section 709(b) of title 32, United States Code,
is amended by striking out ‘‘Except as prescribed by the
Secretary concerned, a technician’’ and inserting in lieu
thereof ‘‘A technician’’.
144
(d) PLAN FOR CLARIFICATION OF STATUTORY AU-
THORITY OF MILITARY TECHNICIANS.—(1) The Secretary
of Defense shall submit to Congress, as part of the budget
justification materials submitted in support of the budget
for the Department of Defense for fiscal year 1999, a leg-
islative proposal to provide statutory authority and clari-
fication under title 5, United States Code—
(A) for the hiring, management, promotion,
separation, and retirement of military technicians
who are employed in support of units of the Army
Reserve or Air Force Reserve; and
(B) for the transition to the competitive service
of an individual who is hired as military technician
in support of a unit of the Army Reserve or Air
Force Reserve and who (as determined by the Sec-
retary concerned) fails to maintain membership in
the Selected Reserve through no fault of the individ-
ual.
(2) The legislative proposal under paragraph (1) shall
be developed in consultation with the Director of the Of-
fice of Personnel Management.
(e) CONFORMING REPEAL.—Section 8106 of Public
Law 104–61 (109 Stat. 654; 10 U.S.C. 10101 note) is
repealed.
145
(f) 
CROSS-REFERENCE
CORRECTIONS.—Section
10216(c)(1) of title 10, United States Code, is amended
by striking out ‘‘subsection (a)(1)’’ in subparagraphs (A),
(B), (C), and (D) and inserting in lieu thereof ‘‘subsection
(b)(1)’’.
(g) 
CONFORMING
AMENDMENTS
TO
SECTION
10216.—Section 10216 of title 10, United States Code,
is further amended as follows:
(1) The heading of subsection (b) is amended
by inserting ‘‘(DUAL STATUS)’’ after ‘‘MILITARY
TECHNICIANS’’.
(2) Subsection (b)(1) is amended—
(A) by inserting ‘‘(dual status)’’ after ‘‘for
military technicians’’;
(B) by striking out ‘‘dual status military
technicians’’ and inserting in lieu thereof ‘‘mili-
tary technicians (dual status)’’;
(C) by inserting ‘‘(dual status)’’ after
‘‘military technicians’’ in subparagraph (C).
(3) Subsection (b)(2) is amended by inserting
‘‘(dual status)’’ after ‘‘military technicians’’ both
places it appears.
(4) Subsection (b)(3) is amended by inserting
‘‘(dual status)’’ after ‘‘Military technician’’.
(5) Subsection (c) is amended—
146
(A) in the matter preceding paragraph
(1)(A), by inserting ‘‘(dual status)’’ after ‘‘mili-
tary technicians’’;
(B) in paragraph (1), by striking out ‘‘dual
status technicians’’ in subparagraphs (A), (B),
(C), and (D) and inserting in lieu thereof ‘‘mili-
tary technicians (dual status)’’;
(C) in paragraph (2)(A), by inserting
‘‘(dual status)’’ after ‘‘military technician’’; and
(D) in paragraph (2)(B), by striking out
‘‘delineate—’’ and all that follows through ‘‘or
other reasons’’ in clause (ii) and inserting in
lieu thereof ‘‘delineate the specific force struc-
ture reductions’’.
(h) CLERICAL AMENDMENTS.—(1) The heading of
section 10216 of such title is amended to read as follows:
‘‘§ 10216. Military technicians (dual status)’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 1007 of such title is
amended to read as follows:
‘‘10216. Military technicians (dual status).’’.
(i) OTHER CONFORMING AMENDMENTS.—(1) Section
115(g) of such title is amended by inserting ‘‘(dual sta-
tus)’’ in the first sentence after ‘‘military technicians’’ and
in the second sentence after ‘‘military technician’’.
(2) Section 115a(h) of such title is amended—
147
(A) by inserting ‘‘(displayed in the aggregate
and separately for military technicians (dual status)
and non-dual status military technicians)’’ in the
matter preceding paragraph (1) after ‘‘of the follow-
ing’’; and
(B) by striking out paragraph (3).
SEC. 523. NON-DUAL STATUS MILITARY TECHNICIANS.
(a) IN GENERAL.—(1) Chapter 1007 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 10217. Non-dual status military technicians
‘‘(a) DEFINITION.—For the purposes of this section
and any other provision of law, a non-dual status military
technician is a civilian employee of the Department of De-
fense who—
‘‘(1) was hired as a military technician before
the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1998 under any of
the authorities specified in subsection (d); and
‘‘(2) as of the date of the enactment of that Act
is not a member of the Selected Reserve or after
such date ceases to be a member of the Selected Re-
serve.
‘‘(b) FISCAL YEAR 1998 LIMITATION.—As of Sep-
tember 30 1998, the number of civilian employees of a
148
military department who are non-dual status military
technicians may not exceed the following:
‘‘(1) For the Army Reserve, 1,200.
‘‘(2) For the Army National Guard of the Unit-
ed States, 2,260.
‘‘(3) For the Air Force Reserve, 0.
‘‘(4) For the Air National Guard of the United
States, 395.
‘‘(c) REDUCTIONS FOR FUTURE YEARS.—For each
of the 10 fiscal years beginning with fiscal year 1999, the
Secretary of the military department concerned shall re-
duce the number of non-dual status military technicians
under the jurisdiction of that Secretary, as of the end of
that fiscal year, from the authorized number for the pre-
ceding fiscal year by not less—
‘‘(1) 120, for the Army Reserve;
‘‘(2) 226, for the Army National Guard of the
United States; and
‘‘(3) 39, for the Air National Guard of the
United States.
‘‘(d) EMPLOYMENT AUTHORITIES.—The authorities
referred to in subsection (a) are the following:
‘‘(1) Section 10216 of this title.
‘‘(2) Section 709 of title 32.
149
‘‘(3) The requirements referred to in section
8401 of title 5.
‘‘(4) Section 8016 of the Department of De-
fense Appropriations Act, 1996 (Public Law 104–
61; 109 Stat. 654), and any comparable provision
provided on an annual basis in the Department of
Defense Appropriations Acts for fiscal years 1984
through 1995.
‘‘(5) Any memorandum of agreement between
the Department of Defense and the Office of Per-
sonnel Management providing for the hiring of mili-
tary technicians.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘10217. Non-dual status military technicians.’’.
(b) PLAN FOR NON-DUAL STATUS TECHNICIANS.—
Not later than March 31, 1998, the Secretary of Defense
shall submit to Congress a report setting forth rec-
ommendations of the Secretary (including proposals for
such legislative changes as may be necessary to implement
the recommendations of the Secretary) for eliminating
non-dual status military technician positions. In develop-
ing the plan, the Secretary shall consider (among other
alternatives) the feasibility and cost of each of the follow-
ing:
150
(1) Elimination or consolidation of functions
and positions.
(2) Contracting for performance by contractor
personnel of functions currently performed by per-
sonnel in those positions.
(3) Conversion of those technicians and posi-
tions, in the case of technicians of the Army Na-
tional Guard of the United States or the Air Na-
tional Guard of the United States, to State employ-
ment and positions or competitive service employ-
ment positions under title 5, United States Code.
(4) Conversion of those technicians or positions
to employment and positions in the competitive serv-
ice under title 5, United States Code, in the case of
technicians of the Army Reserve.
(5) Use of incentives to facilitate the reductions
required under subsection (c) of section 10217 of
title 10, United States Code, as added by subsection
(a).
SEC. 524. REPORT ON FEASIBILITY AND DESIRABILITY OF
CONVERSION OF AGR PERSONNEL TO MILI-
TARY TECHNICIANS (DUAL-STATUS).
(a) REPORT REQUIRED.—Not later than January 1,
1998, the Secretary of Defense shall submit to Congress
a report on the feasibility and desirability of conversion
151
of AGR personnel to military technicians (dual-status).
The report shall—
(1) identify advantages and disadvantages of
such a conversion;
(2) identify possible savings if such a conver-
sion were to be carried out; and
(3) set forth the recommendation of the Sec-
retary as to whether such a conversion should be
made.
(b) AGR PERSONNEL DEFINED.—For purposes of
subsection (a), the term ‘‘AGR personnel’’ means mem-
bers of the Army or Air Force reserve components who
are on active duty (other than for training) in connection
with organizing, administering, recruiting, instructing, or
training their respective reserve components.
Subtitle D—Measures To Improve
Recruit Quality and Reduce Re-
cruit Attrition
SEC. 531. REFORM OF MILITARY RECRUITING SYSTEMS.
(a) IN GENERAL.—The Secretary of Defense shall
carry out reforms in the recruiting systems of the Army,
Navy, Air Force, and Marine Corps in order to improve
the quality of new recruits and to reduce attrition among
recruits.
152
(b) SPECIFIC REFORMS.—As part of the reforms in
military recruiting systems to be undertaken under sub-
section (a), the Secretary shall take the following steps:
(1) Improve the system of separation codes
used for recruits who are separated during recruit
training by (A) revising and updating those codes to
allow more accurate and useful data collection about
those separations, and (B) prescribing regulations to
ensure that those codes are interpreted in a uniform
manner by the military services.
(2) Develop a reliable database for (A) analyz-
ing service-wide data on reasons for attrition of new
recruits, and (B) undertaking service-wide measures
to control and manage such attrition.
(3) Require that the Secretary of each military
department (A) adopt or strengthen incentives for
recruiters to thoroughly prescreen potential can-
didates for recruitment, and (B) link incentives for
recruiters, in part, to the ability of a recruiter to
screen out unqualified candidates before enlistment.
(4) Require that the Secretary of each military
department include as a measurement of recruiter
performance the percentage of persons enlisted by a
recruiter who complete initial combat training or
basic training.
153
(5) Assess trends in the number and use of
waivers over the 1991–1997 period that were issued
to permit applicants to enlist with medical or other
conditions that would otherwise be disqualifying.
(6) Require the Secretary of each military de-
partment to implement policies and procedures (A)
to ensure the prompt separation of recruits who are
unable to successfully complete basic training, and
(B) to remove those recruits from the training envi-
ronment while separation proceedings are pending.
(c) REPORT.—The Secretary shall submit to Con-
gress a report of the trends assessed under subsection
(b)(5). The information on those trends provided in the
report shall be shown by armed force and by category of
waiver. The report shall include recommendations of the
Secretary for changing, revising, or limiting the use of
waivers referred to in that subsection and shall be submit-
ted not later than March 31, 1998.
SEC. 532. IMPROVEMENTS IN MEDICAL PRESCREENING OF
APPLICANTS FOR MILITARY SERVICE.
(a) IN GENERAL.—The Secretary of Defense shall
improve the medical prescreening of applicants for en-
trance into the Army, Navy, Air Force, or Marine Corps.
(b) SPECIFIC STEPS.—As part of those improve-
ments, the Secretary shall take the following steps:
154
(1) Require that each applicant for service in
the Army, Navy, Air Force, or Marine Corps (A)
provide to the Secretary the name of the applicant’s
medical insurer and the names of past medical pro-
viders, and (B) sign a release allowing the Secretary
to request and obtain medical records of the appli-
cant.
(2) Require that the forms and procedures for
medical prescreening of applicants that are used by
recruiters and by Military Entrance Processing
Commands be revised so as to ensure that medical
questions are specific, unambiguous, and tied di-
rectly to the types of medical separations most com-
mon for recruits during basic training and follow-on
training.
(3) Add medical screening tests to the examina-
tions of recruits carried out by Military Entrance
Processing Station, provide more thorough medical
examinations to selected groups of applicants, or
both, to the extent that the Secretary determines
that to do so could be cost effective in reducing at-
trition at basic training.
(4) Assign the responsibility for evaluating
medical conditions of a recruit that are missed dur-
ing accession processing to an agency or contractor
155
other than the Military Entrance Processing Com-
mand which carried out the accession processing of
that recruit (such command being the organization
responsible for accession medical exams).
(5) Require that the Secretary of each military
department test an applicant for entrance into the
Armed Forces for use of illegal drugs at the Military
Entrance Processing Station which carries out the
accession processing of that recruit (in addition to
any subsequent drug testing that may be required).
SEC. 533. IMPROVEMENTS IN PHYSICAL FITNESS OF RE-
CRUITS.
(a) IN GENERAL.—The Secretary of Defense shall
take steps to improve the physical fitness of recruits before
they enter basic training.
(b) SPECIFIC STEPS.—As part of those improve-
ments, the Secretary shall take the following steps:
(1) Direct the Secretary of each military de-
partment to implement programs under which new
recruits who are in the Delayed Entry Program are
encouraged to participate in physical fitness activi-
ties before reporting to basic training.
(2) Develop a range of incentives for new re-
cruits to participate in physical fitness programs, as
well as for those recruits who improve their level of
156
fitness while in the Delayed Entry Program, which
may include the use of monetary or other incentives,
access to Department of Defense military fitness fa-
cilities, and access to military medical facilities in
the case of a recruit who is injured while participat-
ing in physical activities with recruiters or other
military personnel.
(3) Evaluate whether partnerships between re-
cruiters and reserve components, or other innovative
arrangements, could provide a pool of qualified per-
sonnel to assist in the conduct of physical training
programs for new recruits in the Delayed Entry Pro-
gram.
Subtitle E—Military Education and
Training
SEC. 541. INDEPENDENT PANEL TO REVIEW MILITARY
BASIC TRAINING.
(a) ESTABLISHMENT.—There is hereby established a
panel to review the basic training programs of the Army,
Navy, Air Force, and Marine Corps and to make rec-
ommendations on improvements to those programs.
(b) COMPOSITION.—(1) The panel shall be composed
of seven members, appointed as follows:
(A) Three members shall be appointed jointly
by the chairman and ranking minority party member
157
of the Committee on National Security of the House
of Representatives.
(B) Three members shall be appointed jointly
by the chairman and ranking minority party member
of the Committee on Armed Services of the Senate.
(C) One member shall be appointed by the Sec-
retary of Defense.
(2) The members of the panel shall choose one of the
members to chair the panel.
(c) QUALIFICATIONS.—Members of the panel shall be
appointed from among private United States citizens with
knowledge and expertise in one or more of the following:
(1) Training of military personnel.
(2) Social and cultural matters affecting en-
trance into the Armed Forces and affecting military
service, military training, and military readiness,
such knowledge and expertise to have been gained
through recognized research, policy making and
practical experience, as demonstrated by retired mili-
tary personnel, representatives from educational or-
ganizations, and leaders from civilian industry and
other Government agencies.
(3) Factors that define appropriate military job
qualifications, including physical, mental, and edu-
cational factors.
158
(4) Combat or other theater of war operations.
(d) PANEL FUNCTIONS RELATING TO BASIC TRAIN-
ING PROGRAMS GENERALLY.—The panel shall review the
course objectives, structure, and length of the basic train-
ing programs of the Army, Navy, Air Force, and Marine
Corps. As part of that review, the panel shall (with respect
to each of those services) take the following measures:
(1) Determine the current end-state objectives
established for graduates of basic training, particu-
larly in regard to—
(A) physical conditioning;
(B) technical and physical skills pro-
ficiency;
(C) knowledge;
(D) military socialization, including the in-
culcation of service values and attitudes; and
(E) basic combat operational requirements.
(2) Assess whether those current end-state ob-
jectives, and basic training itself, should be modified
(in structure, length, focus, program of instruction,
training methods or otherwise) based, in part, on the
following:
(A) An assessment of the perspectives of
operational units on the quality and qualifica-
tions of the initial entry training graduates
159
being assigned to those units, considering in
particular whether the basic training system
produces graduates who arrive in operational
units with an appropriate level of skills, phys-
ical conditioning, and degree of military social-
ization to meet unit requirements and needs.
(B) An assessment of the demographics,
backgrounds, attitudes, experience, and physical
fitness of new recruits entering basic training,
considering in particular the question of wheth-
er, given the entry level demographics, edu-
cation, and background of new recruits, the
basic training systems and objectives are most
efficiently and effectively structured and con-
ducted to produce graduates who meet service
needs.
(C) An assessment of the perspectives of
personnel who conduct basic training with re-
gard to measures required to improve basic
training.
(e) PANEL FUNCTIONS RELATING TO GENDER-INTE-
GRATED AND GENDER-SEGREGATED BASIC TRAINING.—
The panel shall review the basic training policies of each
of the Army, Navy, Air Force, and Marine Corps with re-
gard to gender-integrated and gender-segregated basic
160
training. As part of that review, the panel shall (with re-
spect to each of those services) take the following meas-
ures:
(1) Determine the historical rationales for the
establishment and disestablishment of gender-inte-
grated or gender-segregated basic training.
(2) Examine the current rationales for the use
of gender-integrated or gender-segregated basic
training and, as part of such examination, evaluate
whether at the time any of the services made a deci-
sion to integrate, or to segregate, basic training by
gender, the Secretary of the military department
concerned had substantive reason to believe, or has
since developed data to support, any of the follow-
ing:
(A) That gender-integrated basic training,
or gender-segregated basic training, improves
the readiness or performance of operational
units
(B) That the entry level of new recruits
with regard to physical condition, attitudes, and
values is so different from that required and ex-
pected in the military services in general, and
in operational units in particular, that an in-
tense period of focused training is required, free
161
from the additional challenges of training males
and females together.
(C) That a significant percentage of
women entering basic training experienced sex-
ual abuse or assault before entering military
service and that gender-segregated basic train-
ing (with same-sex drill instructors) provides
the best opportunity for such women to have
positive military female role models as mentors
and to enter gender-integrated operational
forces from a position of confidence, strength,
and knowledge.
(3) Assess whether the concept of ‘‘training as
you will fight’’ is a valid rationale for gender-inte-
grated basic training or whether the training re-
quirements and objectives for basic training are suf-
ficiently different from those of operational unit so
that such concept, when balanced against other fac-
tors relating to basic training, might not be a suffi-
cient rationale for gender-integrated basic training.
(4) Assess the degree to which different stand-
ards have been established, or if not established are
in fact being implemented, for males and females in
basic training for matters such as physical fitness,
physical performance (such as confidence and obsta-
163
units and assess the relevancy of the findings of
such comparison.
(f) RECOMMENDATIONS.—The panel shall prepare—
(1) an evaluation of gender-integrated and gen-
der-segregated basic training programs, based upon
the review under subsection (e); and
(2) recommendations for such changes to the
current system of basic training as the panel consid-
ers warranted.
(g) REPORTS.—(1) Not later than six months after
the members of the panel are appointed, the panel shall
submit an interim report on its findings and conclusions
to the Secretary of Defense.
(2) Not later than one year after establishment of
the panel, the panel shall submit a final report to the Sec-
retary of Defense. The final report shall include rec-
ommendations for legislative and administrative changes
to basic training programs to improve the readiness and
performance of initial entry training graduates and to re-
duce attrition, both during training and in the first term
of enlistment.
(h) SUBMISSION OF REPORTS TO CONGRESS.—Not
later than one month after receipt of the panel’s interim
report and one month after receipt of the panel’s final re-
port, the Secretary of Defense shall submit the report to
164
Congress together with the views of the Secretary regard-
ing the report and the matter covered in the report.
(i) PAY AND EXPENSES OF MEMBERS.—(1) Each
member of the panel who is not an employee of the Gov-
ernment shall be paid at a rate equal to the daily equiva-
lent of the annual rate of basic pay payable for level IV
of the Executive Schedule under section 5315 of title 5,
United States Code, for each day (including travel time)
during which the 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 sub-
chapter 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.
(j) ADMINISTRATIVE SUPPORT.—(1) Upon the re-
quest of the chairman of the panel, the Secretary of De-
fense may detail to the panel, on a nonreimbursable basis,
personnel of the Department of Defense to assist the panel
in carrying out its duties.
(2) The Secretary of Defense shall furnish to the
panel such administrative and support services as may be
requested by the chairman of the panel.
165
(k) FUNDING.—The Secretary of Defense shall, upon
the request of the panel, make available to the panel such
amounts as the panel may require to carry out its duties
under this title.
(l) TERMINATION OF THE PANEL.—The panel shall
terminate 60 days after the date on which it submits its
final report under subsection (g).
(m) SUBSEQUENT CONSIDERATION BY CONGRESS.—
After submission of the final report of the panel to Con-
gress, the Congress shall, based upon the results of the
study (and such other matters as Congress considers ap-
propriate), consider whether to require by law that the
Secretaries of the military departments conduct basic
training on a gender-segregated basis.
SEC. 542. REFORM OF ARMY DRILL SERGEANT SELECTION
AND TRAINING PROCESS.
(a) IN GENERAL.—The Secretary of the Army shall
reform the process for selection and training of drill ser-
geants for the Army.
(b) MEASURES TO BE TAKEN.—As part of such re-
form, the Secretary shall undertake the following meas-
ures (unless, in the case of any such measure, the Sec-
retary determines that that measure would not result in
improved effectiveness and efficiency in the drill sergeant
selection and training process):
166
(1) Review the overall process used by the De-
partment of the Army for selection of drill sergeants
to determine—
(A) if that process is providing drill ser-
geant candidates in sufficient quantity and
quality to meet the needs of the training sys-
tem; and
(B) whether duty as a drill sergeant is a
career-enhancing assignment (or is seen by po-
tential drill sergeant candidates as a career-en-
hancing assignment) and what steps could be
taken to ensure that such duty is in fact a ca-
reer-enhancing assignment.
(2) Incorporate into the selection process for all
drill sergeants the views and recommendations of the
officers and senior noncommissioned officers in the
chain of command of each candidate for selection
(particularly those of senior noncommissioned offi-
cers) regarding the candidate’s suitability and quali-
fications to be a drill sergeant.
(3) Establish a requirement for psychological
screening for each drill sergeant candidate.
(4) Reform the psychological screening process
for drill sergeant candidates to improve the quality,
depth, and rigor of that screening process.
167
(5) Revise the evaluation system for drill ser-
geants in training to provide for a so-called ‘‘whole
person’’ assessment that gives insight into the quali-
fications and suitability of a drill sergeant candidate
beyond the candidate’s ability to accomplish required
performance tasks.
(6) Revise the Army military personnel records
system so that, under specified conditions and cir-
cumstances, a drill sergeant trainee who fails to
complete the training to be a drill sergeant and is
denied graduation will not have the fact of that fail-
ure recorded in those records. The conditions and
circumstances under which the authority provided in
the preceding sentence may be shall be prescribed by
the Secretary in regulations.
(7) Provide each drill sergeant in training with
the opportunity, before or during that training, to
work with new recruits in initial entry training and
to be evaluated on that opportunity.
(c) REPORT.—Not later than March 31, 1998, the
Secretary shall submit to the Committee on National Se-
curity of the House of Representatives and the Committee
on Armed Services of the Senate a report of the reforms
adopted pursuant to this section or, in the case of any
measure specified in any of paragraphs (1) through (7)
168
of subsection (b) that was not adopted, the rationale why
that measure was not adopted.
SEC. 543. REQUIREMENT FOR CANDIDATES FOR ADMISSION
TO UNITED STATES NAVAL ACADEMY TO
TAKE OATH OF ALLEGIANCE.
(a) REQUIREMENT.—Section 6958 of title 10, United
States Code, is amended by adding at the end the follow-
ing new subsection:
‘‘(d) To be admitted to the Naval Academy, an ap-
pointee must take and subscribe to an oath prescribed by
the Secretary of the Navy. If a candidate for admission
refuses to take and subscribe to the prescribed oath, the
candidate’s appointment is terminated.’’.
(b) EXCEPTION FOR MIDSHIPMEN FROM FOREIGN
COUNTRIES.—Section 6957 of such title is amended by
adding at the end the following new subsection:
‘‘(d) A person receiving instruction under this section
is not subject to section 6958(d) of this title.’’.
SEC. 544. REIMBURSEMENT OF EXPENSES INCURRED FOR
INSTRUCTION AT SERVICE ACADEMIES OF
PERSONS FROM FOREIGN COUNTRIES.
(a) UNITED STATES MILITARY ACADEMY.—Section
4344(b) of title 10, United States Code, is amended—
(1) in paragraph (2), by striking out the period
at the end and inserting in lieu thereof the following:
169
‘‘, except that the reimbursement rates may not be
less than the cost to the United States of providing
such instruction, including pay, allowances, and
emoluments, to a cadet appointed from the United
States.’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3) The amount of reimbursement waived under
paragraph (2) may not exceed 25 percent of the per-per-
son reimbursement amount otherwise required to be paid
by a foreign country under such paragraph, except in the
case of not more than five persons receiving instruction
at the Academy under this section at any one time.’’.
(b) NAVAL ACADEMY.—Section 6957(b) of such title
is amended—
(1) in paragraph (2), by striking out the period
at the end and inserting in lieu thereof the following:
‘‘, except that the reimbursement rates may not be
less than the cost to the United States of providing
such instruction, including pay, allowances, and
emoluments, to a midshipman appointed from the
United States.’’; and
(2) by adding at the end the following new
paragraph:
170
‘‘(3) The amount of reimbursement waived under
paragraph (2) may not exceed 25 percent of the per-per-
son reimbursement amount otherwise required to be paid
by a foreign country under such paragraph, except in the
case of not more than five persons receiving instruction
at the Naval Academy under this section at any one
time.’’.
(c) AIR FORCE ACADEMY.—Section 9344(b) of such
title is amended—
(1) in paragraph (2), by striking out the period
at the end and inserting in lieu thereof the following:
‘‘, except that the reimbursement rates may not be
less than the cost to the United States of providing
such instruction, including pay, allowances, and
emoluments, to a cadet appointed from the United
States.’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3) The amount of reimbursement waived under
paragraph (2) may not exceed 25 percent of the per-per-
son reimbursement amount otherwise required to be paid
by a foreign country under such paragraph, except in the
case of not more than five persons receiving instruction
at the Academy under this section at any one time.’’.