H. R. 1530—225
‘‘(B) This subsection applies to the following funds available
to the Secretary concerned:
‘‘(i) Unexpired funds in appropriations accounts that are
available for procurement and that, as a result of economies,
efficiencies, and other savings achieved in carrying out a
particular procurement, are excess to the requirements of that
procurement.
‘‘(ii) Unexpired funds that are available during the final
30 days of a fiscal year for support of installations and facilities
and that, as a result of economies, efficiencies, and other sav-
ings, are excess to the requirements for support of installations
and facilities.
‘‘(C) Any transfer under subparagraph (A) shall be made under
regulations prescribed by the Secretary of Defense.
‘‘(2) Funds referred to in paragraph (1) may not be transferred
to the Defense Modernization Account if—
‘‘(A) the funds are necessary for programs, projects, and
activities that, as determined by the Secretary, have a higher
priority than the purposes for which the funds would be avail-
able if transferred to that account; or
‘‘(B) the balance of funds in the account, after transfer
of funds to the account, would exceed $1,000,000,000.
‘‘(3) Amounts credited to the Defense Modernization Account
shall remain available for transfer until the end of the third fiscal
year that follows the fiscal year in which the amounts are credited
to the account.
‘‘(4) The period of availability of funds for expenditure provided
for in sections 1551 and 1552 of title 31 may not be extended
by transfer into the Defense Modernization Account.
‘‘(c) SCOPE OF USE OF FUNDS.—Funds transferred to the Defense
Modernization Account from funds appropriated for a military
department, Defense Agency, or other element of the Department
of Defense shall be available in accordance with subsections (f)
and (g) only for transfer to funds available for that military depart-
ment, Defense Agency, or other element.
‘‘(d) AUTHORIZED USE OF FUNDS.—Funds available from the
Defense Modernization Account pursuant to subsection (f) or (g)
may be used for the following purposes:
‘‘(1) For increasing, subject to subsection (e), the quantity
of items and services procured under a procurement program
in order to achieve a more efficient production or delivery
rate.
‘‘(2) For research, development, test, and evaluation and
for procurement necessary for modernization of an existing
system or of a system being procured under an ongoing procure-
ment program.
‘‘(e) LIMITATIONS.—(1) Funds in the Defense Modernization
Account may not be used to increase the quantity of an item
or services procured under a particular procurement program to
the extent that doing so would—
‘‘(A) result in procurement of a total quantity of items
or services in excess of—
‘‘(i) a specific limitation provided by law on the quantity
of the items or services that may be procured; or
‘‘(ii) the requirement for the items or services as
approved by the Joint Requirements Oversight Council and
reported to Congress by the Secretary of Defense; or
H. R. 1530—226
‘‘(B) result in an obligation or expenditure of funds in
excess of a specific limitation provided by law on the amount
that may be obligated or expended, respectively, for that
procurement program.
‘‘(2) Funds in the Defense Modernization Account may not
be used for a purpose or program for which Congress has not
authorized appropriations.
‘‘(3) Funds may not be transferred from the Defense Moderniza-
tion Account in any year for the purpose of—
‘‘(A) making an expenditure for which there is no cor-
responding obligation; or
‘‘(B) making an expenditure that would satisfy an unliqui-
dated or unrecorded obligation arising in a prior fiscal year.
‘‘(f) TRANSFER OF FUNDS.—(1) The Secretary of Defense may
transfer funds in the Defense Modernization Account to appropria-
tions available for purposes set forth in subsection (d).
‘‘(2) Funds in the Defense Modernization Account may not
be transferred under paragraph (1) until 30 days after the date
on which the Secretary concerned notifies the congressional defense
committees in writing of the amount and purpose of the proposed
transfer.
‘‘(3) The total amount of transfers from the Defense Moderniza-
tion Account during any fiscal year under this subsection may
not exceed $500,000,000.
‘‘(g) AVAILABILITY OF FUNDS BY APPROPRIATION.—In addition
to transfers under subsection (f), funds in the Defense Moderniza-
tion Account may be made available for purposes set forth in
subsection (d) in accordance with the provisions of appropriations
Acts, but only to the extent authorized in an Act other than an
appropriations Act.
‘‘(h) SECRETARY TO ACT THROUGH COMPTROLLER.—The Sec-
retary of Defense shall carry out this section through the Under
Secretary of Defense (Comptroller), who shall be authorized to
implement this section through the issuance of any necessary regu-
lations, policies, and procedures after consultation with the General
Counsel and Inspector General of the Department of Defense.
‘‘(i) QUARTERLY REPORTS.—(1) Not later than 15 days after
the end of each calendar quarter, the Secretary of Defense shall
submit to the congressional committees specified in paragraph (2)
a report on the Defense Modernization Account. Each such report
shall set forth the following:
‘‘(A) The amount and source of each credit to the account
during that quarter.
‘‘(B) The amount and purpose of each transfer from the
account during that quarter.
‘‘(C) The balance in the account at the end of the quarter
and, of such balance, the amount attributable to transfers to
the account from each Secretary concerned.
‘‘(2) The committees referred to in paragraph (1) are the
congressional defense committees and the Committee on Govern-
mental Affairs of the Senate and the Committee on Government
Reform and Oversight of the House of Representatives.
‘‘(j) DEFINITIONS.—In this section:
‘‘(1) The term ‘Secretary concerned’ includes the Secretary
of Defense with respect to Defense-wide appropriations
accounts.
H. R. 1530—227
‘‘(2) The term ‘unexpired funds’ means funds appropriated
for a definite period that remain available for obligation.
‘‘(3) The term ‘congressional defense committees’ means—
‘‘(A) the Committee on Armed Services and the
Committee on Appropriations of the Senate; and
‘‘(B) the Committee on National Security and the
Committee 
on 
Appropriations 
of 
the 
House 
of
Representatives.’’.
(2) The table of sections at the beginning of chapter 131 of
such title is amended by inserting after the item relating to section
2215 the following new item:
‘‘2216. Defense Modernization Account.’’.
(b) EFFECTIVE DATE.—Section 2216 of title 10, United States
Code (as added by subsection (a)), shall apply only to funds appro-
priated for fiscal years after fiscal year 1995.
(c) EXPIRATION OF AUTHORITY AND ACCOUNT.—(1) The authority
under section 2216(b) of title 10, United States Code (as added
by subsection (a)), to transfer funds into the Defense Modernization
Account terminates at the close of September 30, 2003.
(2) Three years after the termination date specified in para-
graph (1), the Defense Modernization Account shall be closed and
any remaining balance in the account shall be canceled and there-
after shall not be available for any purpose.
(d) GAO REVIEWS.—(1) The Comptroller General of the United
States shall conduct two reviews of the administration of the
Defense Modernization Account. In each review, the Comptroller
General shall assess the operations and benefits of the account.
(2) Not later than March 1, 2000, the Comptroller General
shall—
(A) complete the first review; and
(B) submit to the specified committees of Congress an
initial report on the administration and benefits of the Defense
Modernization Account.
(3) Not later than March 1, 2003, the Comptroller General
shall—
(A) complete the second review; and
(B) submit to the specified committees of Congress a final
report on the administration and benefits of the Defense Mod-
ernization Account.
(4) Each such report shall include any recommended legislation
regarding the account that the Comptroller General considers
appropriate.
(5) For purposes of this subsection, the term ‘‘specified commit-
tees of Congress’’ means the congressional committees referred to
in section 2216(i)(2) of title 10, United States Code, as added
by subsection (a).
SEC. 913. DESIGNATION AND LIABILITY OF DISBURSING AND CER-
TIFYING OFFICIALS.
(a) DISBURSING OFFICIALS.—(1) Section 3321(c) of title 31,
United States Code, is amended by striking out paragraph (2)
and inserting in lieu thereof the following:
‘‘(2) The Department of Defense.’’.
(2) Section 2773 of title 10, United States Code, is amended—
(A) in subsection (a)—
(i) in paragraph (1), by striking out ‘‘With the approval
of a Secretary of a military department when the Secretary
H. R. 1530—228
considers it necessary, a disbursing official of the military
department’’ and inserting in lieu thereof ‘‘Subject to para-
graph (3), a disbursing official of the Department of
Defense’’; and
(ii) by adding at the end the following new paragraph:
‘‘(3) A disbursing official may make a designation under para-
graph (1) only with the approval of the Secretary of Defense or,
in the case of a disbursing official of a military department, the
Secretary of that military department.’’; and
(B) in subsection (b)(1), by striking out ‘‘any military
department’’ and inserting in lieu thereof ‘‘the Department
of Defense’’.
(b) DESIGNATION OF MEMBERS OF THE ARMED FORCES TO HAVE
AUTHORITY TO CERTIFY VOUCHERS.—Section 3325(b) of title 31,
United States Code, is amended to read as follows:
‘‘(b) In addition to officers and employees referred to in sub-
section (a)(1)(B) of this section as having authorization to certify
vouchers, members of the armed forces under the jurisdiction of
the Secretary of Defense may certify vouchers when authorized,
in writing, by the Secretary to do so.’’.
(c) CONFORMING AMENDMENTS.—(1) Section 1012 of title 37,
United States Code, is amended by striking out ‘‘Secretary con-
cerned’’ both places it appears and inserting in lieu thereof ‘‘Sec-
retary of Defense’’.
(2) Section 1007(a) of title 37, United States Code, is amended
by striking out ‘‘Secretary concerned’’ and inserting in lieu thereof
‘‘Secretary of Defense, or upon the denial of relief of an officer
pursuant to section 3527 of title 31’’.
(3)(A) Section 7863 of title 10, United States Code, is amended—
(i) in the first sentence, by striking out ‘‘disbursements
of public moneys or’’ and ‘‘the money was paid or’’; and
(ii) in the second sentence, by striking out ‘‘disbursement
or’’.
(B)(i) The heading of such section is amended to read as follows:
‘‘§ 7863. Disposal of public stores by order of commanding
officer’’.
(ii) The item relating to such section in the table of sections
at the beginning of chapter 661 of such title is amended to read
as follows:
‘‘7863. Disposal of public stores by order of commanding officer.’’.
(4) Section 3527(b)(1) of title 31, United States Code, is amend-
ed—
(A) by striking out ‘‘a disbursing official of the armed
forces’’ and inserting in lieu thereof ‘‘an official of the armed
forces referred to in subsection (a)’’;
(B) by striking out ‘‘records,’’ and inserting in lieu thereof
‘‘records, or a payment described in section 3528(a)(4)(A) of
this title,’’;
(C) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), and realigning such clauses four ems
from the left margin;
(D) by inserting before clause (i), as so redesignated, the
following:
‘‘(A) in the case of a physical loss or deficiency—’’;
(E) in clause (iii), as so redesignated, by striking out the
period at the end and inserting in lieu thereof ‘‘; or’’; and
H. R. 1530—229
(F) by adding at the end the following:
‘‘(B) in the case of a payment described in section
3528(a)(4)(A) of this title, the Secretary of Defense or the Sec-
retary of the appropriate military department, after taking
a diligent collection action, finds that the criteria of section
3528(b)(1) of this title are satisfied.’’.
SEC. 914. FISHER HOUSE TRUST FUNDS.
(a) ESTABLISHMENT.—(1) Chapter 131 of title 10, United States
Code, is amended by adding at the end the following new section:
‘‘§ 2221. Fisher House trust funds
‘‘(a) ESTABLISHMENT.—The following trust funds are established
on the books of the Treasury:
‘‘(1) The Fisher House Trust Fund, Department of the
Army.
‘‘(2) The Fisher House Trust Fund, Department of the
Air Force.
‘‘(b) INVESTMENT.—Funds in the trust funds may be invested
in securities of the United States. Earnings and gains realized
from the investment of funds in a trust fund shall be credited
to the trust fund.
‘‘(c) USE OF FUNDS.—(1) Amounts in the Fisher House Trust
Fund, Department of the Army, that are attributable to earnings
or gains realized from investments shall be available for the oper-
ation and maintenance of Fisher houses that are located in proxim-
ity to medical treatment facilities of the Army.
‘‘(2) Amounts in the Fisher House Trust Fund, Department
of the Air Force, that are attributable to earnings or gains realized
from investments shall be available for the operation and mainte-
nance of Fisher houses that are located in proximity to medical
treatment facilities of the Air Force.
‘‘(3) The use of funds under this section is subject to section
1321(b)(2) of title 31.
‘‘(d) FISHER HOUSE DEFINED.—In this section, the term ‘Fisher
house’ means a housing facility that—
‘‘(1) is located in proximity to a medical treatment facility
of the Army or the Air Force; and
‘‘(2) is available for residential use on a temporary basis
by patients at such facilities, members of the family of such
patients, and others providing the equivalent of familial support
for such patients.’’.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:
‘‘2221. Fisher House trust funds.’’.
(b) CORPUS OF TRUST FUNDS.—(1) The Secretary of the Treasury
shall—
(A) close the accounts established with the funds that were
required by section 8019 of Public Law 102–172 (105 Stat.
1175) and section 9023 of Public Law 102–396 (106 Stat. 1905)
to be transferred to an appropriated trust fund; and
(B) transfer the amounts in such accounts to the Fisher
House Trust Fund, Department of the Army, established by
subsection (a)(1) of section 2221 of title 10, United States Code,
as added by subsection (a).
(2) The Secretary of the Air Force shall transfer to the Fisher
House Trust Fund, Department of the Air Force, established by
H. R. 1530—230
subsection (a)(2) of section 2221 of title 10, United States Code
(as added by section (a)), all amounts in the accounts for Air
Force installations and other facilities that, as of the date of the
enactment of this Act, are available for operation and maintenance
of Fisher houses (as defined in subsection (d) of such section 2221).
(c) CONFORMING AMENDMENTS.—Section 1321 of title 31, United
States Code, is amended—
(1) by adding at the end of subsection (a) the following:
‘‘(92) Fisher House Trust Fund, Department of the Army.
‘‘(93) Fisher House Trust Fund, Department of the Air
Force.’’; and
(2) in subsection (b)—
(A) by inserting ‘‘(1)’’ after ‘‘(b)’’;
(B) in the second sentence, by striking out ‘‘Amounts
accruing to these funds (except to the trust fund ‘Armed
Forces Retirement Home Trust Fund’)’’ and inserting in
lieu thereof ‘‘Except as provided in paragraph (2), amounts
accruing to these funds’’;
(C) by striking out the third sentence; and
(D) by adding at the end the following:
‘‘(2) Expenditures from the following trust funds may be made
only under annual appropriations and only if the appropriations
are specifically authorized by law:
‘‘(A) Armed Forces Retirement Home Trust Fund.
‘‘(B) Fisher House Trust Fund, Department of the Army.
‘‘(C) Fisher House Trust Fund, Department of the Air
Force.’’.
(d) REPEAL OF SUPERSEDED PROVISIONS.—The following provi-
sions of law are repealed:
(1) Section 8019 of Public Law 102–172 (105 Stat. 1175).
(2) Section 9023 of Public Law 102–396 (106 Stat. 1905).
(3) Section 8019 of Public Law 103–139 (107 Stat. 1441).
(4) Section 8017 of Public Law 103–335 (108 Stat. 2620;
10 U.S.C. 1074 note).
SEC. 915. LIMITATION ON USE OF AUTHORITY TO PAY FOR EMER-
GENCY AND EXTRAORDINARY EXPENSES.
Section 127 of title 10, United States Code, is amended—
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new sub-
section (c):
‘‘(c)(1) Funds may not be obligated or expended in an amount
in excess of $500,000 under the authority of subsection (a) or
(b) until the Secretary of Defense has notified the Committee on
Armed Services and the Committee on Appropriations of the Senate
and the Committee on National Security and the Committee on
Appropriations of the House of Representatives of the intent to
obligate or expend the funds, and—
‘‘(A) in the case of an obligation or expenditure in excess
of $1,000,000, 15 days have elapsed since the date of the
notification; or
‘‘(B) in the case of an obligation or expenditure in excess
of $500,000, but not in excess of $1,000,000, 5 days have elapsed
since the date of the notification.
‘‘(2) Subparagraph (A) or (B) of paragraph (1) shall not apply
to an obligation or expenditure of funds otherwise covered by such
subparagraph if the Secretary of Defense determines that the
H. R. 1530—231
national security objectives of the United States will be com-
promised by the application of the subparagraph to the obligation
or expenditure. If the Secretary makes a determination with respect
to an obligation or expenditure under the preceding sentence, the
Secretary shall immediately notify the committees referred to in
paragraph (1) that such obligation or expenditure is necessary
and provide any relevant information (in classified form, if nec-
essary) jointly to the chairman and ranking minority member (or
their designees) of such committees.
‘‘(3) A notification under paragraph (1) and information referred
to in paragraph (2) shall include the amount to be obligated or
expended, as the case may be, and the purpose of the obligation
or expenditure.’’.
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
SEC. 1001. TRANSFER AUTHORITY.
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—(1) Upon deter-
mination by the Secretary of Defense that such action is necessary
in the national interest, the Secretary may transfer amounts of
authorizations made available to the Department of Defense in
this division for fiscal year 1996 between any such authorizations
for that fiscal year (or any subdivisions thereof). Amounts of
authorizations so transferred shall be merged with and be available
for the same purposes as the authorization to which transferred.
(2) The total amount of authorizations that the Secretary of
Defense may transfer under the authority of this section may not
exceed $2,000,000,000.
(b) LIMITATIONS.—The authority provided by this section to
transfer authorizations—
(1) may only be used to provide authority for items that
have a higher priority than the items from which authority
is transferred; and
(2) may not be used to provide authority for an item that
has been denied authorization by Congress.
(c) EFFECT
ON AUTHORIZATION AMOUNTS.—A transfer made
from one account to another under the authority of this section
shall be deemed to increase the amount authorized for the account
to which the amount is transferred by an amount equal to the
amount transferred.
(d) NOTICE TO CONGRESS.—The Secretary shall promptly notify
Congress of each transfer made under subsection (a).
SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.
(a) STATUS OF CLASSIFIED ANNEX.—The Classified Annex pre-
pared by the committee on conference to accompany the bill H.R.
1530 of the One Hundred Fourth Congress and transmitted to
the President is hereby incorporated into this Act.
(b) CONSTRUCTION WITH OTHER PROVISIONS
OF ACT.—The
amounts specified in the Classified Annex are not in addition to
amounts authorized to be appropriated by other provisions of this
Act.
(c) LIMITATION ON USE OF FUNDS.—Funds appropriated pursu-
ant to an authorization contained in this Act that are made avail-
H. R. 1530—232
able for a program, project, or activity referred to in the Classified
Annex may only be expended for such program, project, or activity
in accordance with such terms, conditions, limitations, restrictions,
and requirements as are set out for that program, project, or activity
in the Classified Annex.
(d) DISTRIBUTION OF CLASSIFIED ANNEX.—The President shall
provide for appropriate distribution of the Classified Annex, or
of appropriate portions of the annex, within the executive branch
of the Government.
SEC. 1003. IMPROVED FUNDING MECHANISMS FOR UNBUDGETED
OPERATIONS.
(a) REVISION
OF FUNDING MECHANISM.—(1) Section 127a of
title 10, United States Code, is amended to read as follows:
‘‘§ 127a. Operations for which funds are not provided in
advance: funding mechanisms
‘‘(a) IN GENERAL.—(1) The Secretary of Defense shall use the
procedures prescribed by this section with respect to any operation
specified in paragraph (2) that involves—
‘‘(A) the deployment (other than for a training exercise)
of elements of the Armed Forces for a purpose other than
a purpose for which funds have been specifically provided in
advance; or
‘‘(B) the provision of humanitarian assistance, disaster
relief, or support for law enforcement (including immigration
control) for which funds have not been specifically provided
in advance.
‘‘(2) This section applies to—
‘‘(A) any operation the incremental cost of which is expected
to exceed $50,000,000; and
‘‘(B) any other operation the expected incremental cost
of which, when added to the expected incremental costs of
other operations that are currently ongoing, is expected to
result in a cumulative incremental cost of ongoing operations
of the Department of Defense in excess of $100,000,000.
Any operation the incremental cost of which is expected not to
exceed $10,000,000 shall be disregarded for the purposes of subpara-
graph (B).
‘‘(3) Whenever an operation to which this section applies is
commenced or subsequently becomes covered by this section, the
Secretary of Defense shall designate and identify that operation
for the purposes of this section and shall promptly notify Congress
of that designation (and of the identification of the operation).
‘‘(4) This section does not provide authority for the President
or the Secretary of Defense to carry out any operation, but estab-
lishes mechanisms for the Department of Defense by which funds
are provided for operations that the armed forces are required
to carry out under some other authority.
‘‘(b) WAIVER OF REQUIREMENT TO REIMBURSE SUPPORT UNITS.—
(1) The Secretary of Defense shall direct that, when a unit of
the Armed Forces participating in an operation described in sub-
section (a) receives services from an element of the Department
of Defense that operates through the Defense Business Operations
Fund (or a successor fund), such unit of the Armed Forces may
not be required to reimburse that element for the incremental
costs incurred by that element in providing such services, notwith-
H. R. 1530—233
standing any other provision of law or any Government accounting
practice.
‘‘(2) The amounts which but for paragraph (1) would be required
to be reimbursed to an element of the Department of Defense
(or a fund) shall be recorded as an expense attributable to the
operation and shall be accounted for separately.
‘‘(c) TRANSFER AUTHORITY.—(1) Whenever there is an operation
of the Department of Defense described in subsection (a), the Sec-
retary of Defense may transfer amounts described in paragraph
(3) to accounts from which incremental expenses for that operation
were incurred in order to reimburse those accounts for those incre-
mental expenses. Amounts so transferred shall be merged with
and be available for the same purposes as the accounts to which
transferred.
‘‘(2) The total amount that the Secretary of Defense may trans-
fer under the authority of this section in any fiscal year is
$200,000,000.
‘‘(3) Transfers under this subsection may only be made from
amounts appropriated to the Department of Defense for any fiscal
year that remain available for obligation, other than amounts within
any operation and maintenance appropriation that are available
for (A) an account (known as a budget activity 1 account) that
is specified as being for operating forces, or (B) an account (known
as a budget activity 2 account) that is specified as being for
mobilization.
‘‘(4) The authority provided by this subsection is in addition
to any other authority provided by law authorizing the transfer
of amounts available to the Department of Defense. However, the
Secretary may not use any such authority under another provision
of law for a purpose described in paragraph (1) if there is authority
available under this subsection for that purpose.
‘‘(5) The authority provided by this subsection to transfer
amounts may not be used to provide authority for an activity
that has been denied authorization by Congress.
‘‘(6) A transfer made from one account to another under the
authority of this subsection shall be deemed to increase the amount
authorized for the account to which the amount is transferred
by an amount equal to the amount transferred.
‘‘(d) REPORT UPON DESIGNATION OF AN OPERATION.—Within
45 days after the Secretary of Defense identifies an operation pursu-
ant to subsection (a)(2), the Secretary of Defense shall submit
to Congress a report that sets forth the following:
‘‘(1) The manner by which the Secretary proposes to obtain
funds for the cost to the United States of the operation, includ-
ing a specific discussion of how the Secretary proposes to restore
balances in—
‘‘(A) the Defense Business Operations Fund (or a
successor fund), or
‘‘(B) the accounts from which the Secretary transfers
funds under the authority of subsection (c), to the levels
that would have been anticipated but for the provisions
of subsection (c).
‘‘(2) If the operation is described in subsection (a)(1)(B),
a justification why the budgetary resources of another depart-
ment or agency of the Federal Government, instead of resources
of the Department of Defense, are not being used for carrying
out the operation.