H. R. 2266—34
basis, to the Indian Health Service when it is in conjunction with
a civil-military project.
SEC. 8075. None of the funds in this Act may be used to
purchase any supercomputer which is not manufactured in the
United States, unless the Secretary of Defense certifies to the
congressional defense committees that such an acquisition must
be made in order to acquire capability for national security purposes
that is not available from United States manufacturers.
SEC. 8076. Notwithstanding any other provision of law, the
Naval shipyards of the United States shall be eligible to participate
in any manufacturing extension program financed by funds appro-
priated in this or any other Act.
SEC. 8077. Notwithstanding any other provision of law, each
contract awarded by the Department of Defense during the current
fiscal year for construction or service performed in whole or in
part in a State which is not contiguous with another State and
has an unemployment rate in excess of the national average rate
of unemployment as determined by the Secretary of Labor, shall
include a provision requiring the contractor to employ, for the
purpose of performing that portion of the contract in such State
that is not contiguous with another State, individuals who are
residents of such State and who, in the case of any craft or trade,
possess or would be able to acquire promptly the necessary skills:
Provided, That the Secretary of Defense may waive the require-
ments of this section, on a case-by-case basis, in the interest of
national security.
SEC. 8078. During the current fiscal year, the Army shall
use the former George Air Force Base as the airhead for the
National Training Center at Fort Irwin: Provided, That none of
the funds in this Act shall be obligated or expended to transport
Army personnel into Edwards Air Force Base for training rotations
at the National Training Center.
SEC. 8079. (a) The Secretary of Defense shall submit, on a
quarterly basis, a report to the congressional defense committees,
the Committee on International Relations of the House of Rep-
resentatives and the Committee on Foreign Relations of the Senate
setting forth all costs (including incremental costs) incurred by
the Department of Defense during the preceding quarter in
implementing or supporting resolutions of the United Nations Secu-
rity Council, including any such resolution calling for international
sanctions, international peacekeeping operations, and humanitarian
missions undertaken by the Department of Defense. The quarterly
report shall include an aggregate of all such Department of Defense
costs by operation or mission.
(b) The Secretary of Defense shall detail in the quarterly reports
all efforts made to seek credit against past United Nations expendi-
tures and all efforts made to seek compensation from the United
Nations for costs incurred by the Department of Defense in
implementing and supporting United Nations activities.
SEC. 8080. (a) LIMITATION ON TRANSFER OF DEFENSE ARTICLES
AND SERVICES.—Notwithstanding any other provision of law, none
of the funds available to the Department of Defense for the current
fiscal year may be obligated or expended to transfer to another
nation or an international organization any defense articles or
services (other than intelligence services) for use in the activities
described in subsection (b) unless the congressional defense commit-
tees, the Committee on International Relations of the House of
H. R. 2266—35
Representatives, and the Committee on Foreign Relations of the
Senate are notified 15 days in advance of such transfer.
(b) COVERED ACTIVITIES.—This section applies to—
(1) any international peacekeeping or peace-enforcement
operation under the authority of chapter VI or chapter VII
of the United Nations Charter under the authority of a United
Nations Security Council resolution; and
(2) any other international peacekeeping, peace-enforce-
ment, or humanitarian assistance operation.
(c) REQUIRED NOTICE.—A notice under subsection (a) shall
include the following:
(1) A description of the equipment, supplies, or services
to be transferred.
(2) A statement of the value of the equipment, supplies,
or services to be transferred.
(3) In the case of a proposed transfer of equipment or
supplies—
(A) a statement of whether the inventory requirements
of all elements of the Armed Forces (including the reserve
components) for the type of equipment or supplies to be
transferred have been met; and
(B) a statement of whether the items proposed to be
transferred will have to be replaced and, if so, how the
President proposes to provide funds for such replacement.
SEC. 8081. To the extent authorized by subchapter VI of chapter
148 of title 10, United States Code, the Secretary of Defense shall
issue loan guarantees in support of United States defense exports
not otherwise provided for: Provided, That the total contingent
liability of the United States for guarantees issued under the
authority of this section may not exceed $15,000,000,000: Provided
further, That the exposure fees charged and collected by the Sec-
retary for each guarantee, shall be paid by the country involved
and shall not be financed as part of a loan guaranteed by the
United States: Provided further, That the Secretary shall provide
quarterly reports to the Committees on Appropriations, Armed Serv-
ices and Foreign Relations of the Senate and the Committees on
Appropriations, National Security and International Relations in
the House of Representatives on the implementation of this pro-
gram: Provided further, That amounts charged for administrative
fees and deposited to the special account provided for under section
2540c(d) of title 10, shall be available for paying the costs of
administrative expenses of the Department of Defense that are
attributable to the loan guarantee program under subchapter VI
of chapter 148 of title 10.
SEC. 8082. None of the funds available to the Department
of Defense shall be obligated or expended to make a financial
contribution to the United Nations for the cost of an United Nations
peacekeeping activity (whether pursuant to assessment or a vol-
untary contribution) or for payment of any United States arrearage
to the United Nations.
SEC. 8083. None of the funds available to the Department
of Defense under this Act shall be obligated or expended to pay
a contractor under a contract with the Department of Defense
for costs of any amount paid by the contractor to an employee
when—
H. R. 2266—36
(1) such costs are for a bonus or otherwise in excess of
the normal salary paid by the contractor to the employee;
and
(2) such bonus is part of restructuring costs associated
with a business combination.
SEC. 8084. (a) None of the funds appropriated or otherwise
made available in this Act may be used to transport or provide
for the transportation of chemical munitions or agents to the John-
ston Atoll for the purpose of storing or demilitarizing such muni-
tions or agents.
(b) The prohibition in subsection (a) shall not apply to any
obsolete World War II chemical munition or agent of the United
States found in the World War II Pacific Theater of Operations.
(c) The President may suspend the application of subsection
(a) during a period of war in which the United States is a party.
SEC. 8085. None of the funds provided in title II of this Act
for ‘‘Former Soviet Union Threat Reduction’’ may be obligated or
expended to finance housing for any individual who was a member
of the military forces of the Soviet Union or for any individual
who is or was a member of the military forces of the Russian
Federation.
SEC. 8086. During the current fiscal year, no more than
$10,000,000 of appropriations made in this Act under the heading
‘‘OPERATION AND MAINTENANCE, DEFENSE-WIDE’’ may be transferred
to appropriations available for the pay of military personnel, to
be merged with, and to be available for the same time period
as the appropriations to which transferred, to be used in support
of such personnel in connection with support and services for eligible
organizations and activities outside the Department of Defense
pursuant to section 2012 of title 10, United States Code.
SEC. 8087. For purposes of section 1553(b) of title 31, United
States Code, any subdivision of appropriations made in this Act
under the heading ‘‘SHIPBUILDING AND CONVERSION, NAVY’’ shall
be considered to be for the same purpose as any subdivision under
the heading ‘‘SHIPBUILDING AND CONVERSION, NAVY’’ appropriations
in any prior year, and the 1 percent limitation shall apply to
the total amount of the appropriation.
SEC. 8088. Notwithstanding 31 U.S.C. 1552(a), not more than
$14,000,000 appropriated under the heading ‘‘AIRCRAFT PROCURE-
MENT, AIR FORCE’’ in Public Law 102–396 which was available
and obligated for the B–2 Aircraft Program shall remain available
for expenditure and for adjusting obligations for such program
until September 30, 2003.
SEC. 8089. During the current fiscal year, in the case of an
appropriation account of the Department of Defense for which the
period of availability for obligation has expired or which has closed
under the provisions of section 1552 of title 31, United States
Code, and which has a negative unliquidated or unexpended bal-
ance, an obligation or an adjustment of an obligation may be
charged to any current appropriation account for the same purpose
as the expired or closed account if—
(1) the obligation would have been properly chargeable
(except as to amount) to the expired or closed account before
the end of the period of availability or closing of that account;
(2) the obligation is not otherwise properly chargeable to
any current appropriation account of the Department of
Defense; and
H. R. 2266—37
(3) in the case of an expired account, the obligation is
not chargeable to a current appropriation of the Department
of Defense under the provisions of section 1405(b)(8) of the
National Defense Authorization Act for Fiscal Year 1991, Public
Law 101–510, as amended (31 U.S.C. 1551 note): Provided,
That in the case of an expired account, if subsequent review
or investigation discloses that there was not in fact a negative
unliquidated or unexpended balance in the account, any charge
to a current account under the authority of this section shall
be reversed and recorded against the expired account: Provided
further, That the total amount charged to a current appropria-
tion under this section may not exceed an amount equal to
1 percent of the total appropriation for that account.
(TRANSFER OF FUNDS)
SEC. 8090. Upon enactment of this Act, the Secretary of Defense
shall make the following transfers of funds: Provided, That the
amounts transferred shall be available for the same purposes as
the appropriations to which transferred, and for the same time
period as the appropriation from which transferred: Provided fur-
ther, That the amounts shall be transferred between the following
appropriations in the amount specified:
From:
Under the heading, ‘‘Shipbuilding and Conversion,
Navy, 1989/2000’’:
SSN–688 attack submarine program, $3,000,000;
DDG–51 destroyer program, $1,500,000;
LHD–1 
amphibious 
assault 
ship 
program,
$8,000,000;
T–AO fleet oiler program, $3,453,000;
AOE combat support ship program, $3,600,000;
and
For craft, outfitting, and post delivery, $2,019,000;
To:
Under the heading, ‘‘Shipbuilding and Conversion,
Navy, 1989/2000’’:
SSN–21 attack submarine program, $21,572,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion,
Navy, 1991/2001’’:
DDG–51 destroyer program, $1,060,000;
LHD–1 
amphibious 
assault 
ship 
program,
$1,600,000;
LSD–41 cargo variant ship program, $2,666,000;
AOE combat support ship program, $7,307,000;
and
For 
craft, 
outfitting, 
and 
post 
delivery,
$12,000,000;
To:
Under the heading, ‘‘Shipbuilding and Conversion,
Navy, 1991/2001’’:
SSN–21 attack submarine program, $24,633,000;
H. R. 2266—38
From:
Under the heading, ‘‘Shipbuilding and Conversion,
Navy, 1996/2000’’:
LHD–1 
amphibious 
assault 
ship 
program,
$5,592,000;
To:
Under the heading, ‘‘Shipbuilding and Conversion,
Navy, 1996/2000’’:
SSN–21 attack submarine program, $5,592,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion,
Navy, 1994/1998’’:
LHD–1 
amphibious 
assault 
ship 
program,
$400,000; and
DDG–51 destroyer program, $1,054,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion,
Navy, 1995/1999’’:
For craft, outfitting, and post delivery, conversions,
and first destination transportation, $715,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion,
Navy, 1996/2000’’:
LHD–1 
amphibious 
assault 
ship 
program,
$17,513,000; and
For craft, outfitting, and post delivery, conversions,
and first destination transportation, $878,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion,
Navy, 1997/2001’’:
For craft, outfitting, and post delivery, conversions,
and first destination transportation, $3,600,000;
To:
Under the heading, ‘‘Shipbuilding and Conversion,
Navy, 1997/2001’’:
DDG–51 destroyer program, $24,160,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion,
Navy, 1996/2000’’:
Fast Patrol Boat, $9,500,000;
To:
‘‘Research, Development, Test and Evaluation, Navy,
1998/1999’’, $9,500,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion,
Navy, 1997/2001’’:
Oceanographic ship SWATH, $45,000,000;
To:
‘‘Research, Development, Test and Evaluation, Navy,
1998/1999’’, $45,000,000;
From:
‘‘Aircraft 
Procurement, 
Air 
Force, 
1997/1999’’,
$73,531,000;
To:
‘‘Research, Development, Test and Evaluation, Air
Force, 1997/1998’’, $73,531,000:
H. R. 2266—39
Provided further, That notwithstanding any other provision of law,
to facilitate a full and final settlement of all claims under contracts
N00024–79–C–2614 and N00024–77–C–2031, the Secretary of the
Navy may offset the amount of $1,660,680.84, owed by the Navy
under contract N00024–79–C–2614 for the T–ARC–7 against an
equal amount, $1,660,680.84, owed to the Navy under contract
N00024–77–C–2031 for the AD 43.
SEC. 8091. The Under Secretary of Defense (Comptroller) shall
submit to the congressional defense committees by February 1,
1998 a detailed report identifying, by amount and by separate
budget activity, activity group, subactivity group, line item, program
element, program, project, subproject, and activity, any activity
for which the fiscal year 1999 budget request was reduced because
Congress appropriated funds above the President’s budget request
for that specific activity for fiscal year 1998.
SEC. 8092. (a) None of the funds available to the Department
of Defense under this Act may be obligated or expended to
reimburse a defense contractor for restructuring costs associated
with a business combination of the defense contractor that occurs
after the date of enactment of this Act unless—
(1) the auditable savings for the Department of Defense
resulting from the restructuring will exceed the costs allowed
by a factor of at least two to one; or
(2) the savings for the Department of Defense resulting
from the restructuring will exceed the costs allowed and the
Secretary of Defense determines that the business combination
will result in the preservation of a critical capability that might
otherwise be lost to the Department; and
(3) the report required by section 818(e) of Public Law
103–337 to be submitted to Congress in 1997 is submitted.
(b) Not later than April 1, 1998, the Comptroller General shall,
in consultation with the Inspector General of the Department of
Defense, the Secretary of Defense, and the Secretary of Labor,
submit to Congress a report which shall include the following:
(1) an analysis and breakdown of the restructuring costs
paid by or submitted to the Department of Defense to companies
involved in business combinations since 1993;
(2) an analysis of the specific costs associated with
workforce reductions;
(3) an analysis of the services provided to the workers
affected by business combinations;
(4) an analysis of the effectiveness of the restructuring
costs used to assist laid off workers in gaining employment;
and
(5) in accordance with section 818 of Public Law 103–
337, an analysis of the savings reached from the business
combination relative to the restructuring costs paid by the
Department of Defense.
(c) The report should set forth recommendations to make this
program more effective for workers affected by business combina-
tions and more efficient in terms of the use of Federal dollars.
SEC. 8093. Funds appropriated in title II of this Act for super-
vision and administration costs for facilities maintenance and
repair, minor construction, or design projects may be obligated
at the time the reimbursable order is accepted by the performing
activity: Provided, That for the purpose of this section, supervision
and administration costs includes all in-house Government cost.
H. R. 2266—40
SEC. 8094. The Secretary of Defense may waive reimbursement
of the cost of conferences, seminars, courses of instruction, or similar
educational activities of the Asia-Pacific Center for Security Studies
for military officers and civilian officials of foreign nations if the
Secretary determines that attendance by such personnel, without
reimbursement, is in the national security interest of the United
States: Provided, That costs for which reimbursement is waived
pursuant to this subsection shall be paid from appropriations avail-
able for the Asia-Pacific Center.
SEC. 8095. (a) Notwithstanding any other provision of law,
the Chief of the National Guard Bureau may permit the use of
equipment of the National Guard Distance Learning Project by
any person or entity on a space-available, reimbursable basis. The
Chief of the National Guard Bureau shall establish the amount
of reimbursement for such use on a case-by-case basis.
(b) Amounts collected under subsection (a) shall be credited
to funds available for the National Guard Distance Learning Project
and be available to defray the costs associated with the use of
equipment of the project under that subsection. Such funds shall
be available for such purposes without fiscal year limitation.
SEC. 8096. Using funds available by this Act or any other
Act, the Secretary of the Air Force, pursuant to a determination
under section 2690 of title 10, United States Code, may implement
cost-effective agreements for required heating facility modernization
in the Kaiserslautern Military Community in the Federal Republic
of Germany: Provided, That in the City of Kaiserslautern such
agreements will include the use of United States anthracite as
the base load energy for municipal district heat to the United
States Defense installations: Provided further, That at Landstuhl
Army Regional Medical Center and Ramstein Air Base, furnished
heat may be obtained from private, regional or municipal services,
if provisions are included for the consideration of United States
coal as an energy source.
SEC. 8097. Notwithstanding any other provision of law, and
notwithstanding the provisions in section 7306 of title 10, United
States Code, in addition to amounts otherwise appropriated or
made available by this Act, $13,000,000 is appropriated to the
Department of the Navy and shall be available only for a grant
to the Intrepid Sea-Air-Space Foundation only for the refurbishment
of the former U.S.S. Intrepid (CV 11).
SEC. 8098. In accordance with section 1557 of title 31, United
States Code, the following obligated balance shall be exempt from
subchapter IV of chapter 15 of such title and shall remain available
for expenditure without fiscal year limitation: Funds obligated by
the Economic Development Administration for EDA Project No.
04–49–04095 from funds made available in the Department of
Defense Appropriations Act, 1994 (Public Law 103–189).
SEC. 8099. None of the funds provided by this Act may be
used to pay costs of instruction for an Air Force officer for enroll-
ment commencing during the 1998–1999 academic year in a post-
graduate degree program at a civilian educational institution if—
(1) the degree program to be pursued by that officer is
offered by the Air Force Institute of Technology (or was offered
by that institute during the 1996–1997 academic year);
(2) the officer is qualified for enrollment at the Air Force
Institute of Technology in that degree program; and
H. R. 2266—41
(3) the number of students commencing that degree pro-
gram at the Air Force Institute of Technology during the first
semester of the 1998–1999 academic year is less than the
number of students commencing that degree program for the
first semester of the 1996–1997 academic year.
SEC. 8100. During the current fiscal year, the amounts which
are necessary for the operation and maintenance of the Fisher
Houses administered by the Departments of the Army, the Navy,
and the Air Force are hereby appropriated, to be derived from
amounts which are available in the applicable Fisher House trust
fund established under 10 U.S.C. 2221 for the Fisher Houses of
each such department.
SEC. 8101. During the current fiscal year, refunds attributable
to the use of the Government travel card by military personnel
and civilian employees of the Department of Defense may be cred-
ited to operation and maintenance accounts of the Department
of Defense which are current when the refunds are received.
SEC. 8102. During the current fiscal year, not more than a
total of $60,000,000 in withdrawal credits may be made by the
Marine Corps Supply Management activity group of the Navy Work-
ing Capital Fund, Department of Defense Working Capital Funds,
to the credit of current applicable appropriations of a Department
of Defense activity in connection with the acquisition of critical
low density repairables that are capitalized into the Navy Working
Capital Fund.
SEC. 8103. Notwithstanding 31 U.S.C. 3902, during the current
fiscal year interest penalties may be paid by the Department of
Defense from funds financing the operation of the military depart-
ment or defense agency with which the invoice or contract payment
is associated.
SEC. 8104. At the time the President submits his budget for
fiscal year 1999, the Department of Defense shall transmit to the
congressional defense committees a budget justification document
for the active and reserve Military Personnel accounts, to be known
as the ‘‘M–1’’, which shall identify, at the budget activity, activity
group, and subactivity group level, the amounts requested by the
President to be appropriated to the Department of Defense for
military personnel in any budget request, or amended budget
request, for fiscal year 1999.
SEC. 8105. Notwithstanding any other provision in this Act,
the total amount appropriated in this Act is hereby reduced by
$100,000,000 to reflect savings due to excess inventory, to be distrib-
uted as follows: ‘‘Operation and Maintenance, Army’’, $40,000,000;
‘‘Operation and Maintenance, Navy’’, $40,000,000; and ‘‘Operation
and Maintenance, Air Force’’, $20,000,000.
SEC. 8106. Notwithstanding any other provision in this Act,
the total amount appropriated in title III of this Act is hereby
reduced by $75,000,000 to reflect savings from repeal of section
2403 of title 10, United States Code.
SEC. 8107. The Secretary of the Army may exchange or sell
one Army C–20 aircraft and may apply the exchange allowance
or sale proceeds in whole or in part payment for the acquisition
of one C–37 aircraft: Provided, That in addition to such exchange
allowance or sale proceeds, of the amount appropriated for fiscal
year 1998 for Aircraft Procurement, Air Force, not more than
$6,000,000 shall be made available for acquisition of the C–37
for the United States Army: Provided further, That in addition
H. R. 2266—42
to such exchange allowance or sale proceeds, of the amount appro-
priated for fiscal year 1997 for Aircraft Procurement, Air Force,
not more than $27,100,000 shall be made available for acquisition
of the C–37 for the United States Army.
SEC. 8108. During the current fiscal year, the Secretary of
Defense may award contracts for capital assets having a develop-
ment or acquisition cost of not less than $100,000 of a Working
Capital Fund in advance of the availability of funds in the Working
Capital Fund for minor construction, automatic data processing
equipment, software, equipment, and other capital improvements.
SEC. 8109. From funds made available by this Act for the
Maritime Technology Program up to $250,000 shall be made avail-
able to assist with a pilot project that will facilitate the transfer
of commercial cruise ship shipbuilding technology and expertise
to United States yards, utilize the experience and expertise of
existing U.S.-flag cruise ship operators, and enable the operation
of a U.S.-flag foreign-built cruise ship, and two newly constructed
U.S.-flag cruise ships: Provided, That a person (including a related
person with respect to that person) who, within 18 months after
the date of enactment, enters into a binding contract for construc-
tion in the United States of two cruise ships, which contract shall
provide for the construction of two cruise ships of equal or greater
size than the cruise ship being operated by such person on the
date of enactment and shall require the delivery of the first cruise
ship no later than January 1, 2005, and the second cruise ship
no later than January 1, 2008, may document with a coastwise
endorsement a cruise ship constructed pursuant to this section
and a foreign-built cruise ship otherwise in compliance with 46
U.S.C. 289, 883, and 12106 until such date which is 24 months
after the delivery of the second cruise ship or any subsequently
delivered cruise ship: Provided further, That a person (including
a related person with respect to that person) within the meaning
of 46 U.S.C. 801 may not operate a U.S.-flag foreign-built cruise
ship, or any other cruise ship, in coastwise trade between or among
the islands of Hawaii, upon execution of the contract referred to
in this section and continuing throughout the life expectancy (as
that term is used in 46 U.S.C. App. 1125) of a newly constructed
U.S.-flag cruise ship referred to in this section, unless the cruise
ship is operated by a person (including a related person with
respect to that person) that is operating a cruise ship in coastwise
trade between or among the islands of Hawaii on the date of
enactment, except if any cruise ship constructed pursuant to this
section operates in regular service other than between or among
the islands of Hawaii: Provided further, That for purposes of this
section the term ‘‘cruise ship’’ means a vessel that is at least
10,000 gross tons (as measured under chapter 143 of title 46,
United States Code) and has berth or stateroom accommodations
for at least 275 passengers: Provided further, That for purposes
of this section, unless otherwise defined in this section, the term
‘‘person’’ means a corporation, partnership or association the control-
ling interest of which is owned by citizens of the United States
within the meaning of 46 U.S.C. 802(b): Provided further, That
for purposes of this section the term ‘‘related person’’ means with
respect to a person: (1) a holding company, subsidiary, affiliate
or association of the person; and (2) an officer, director, or agent
of the person or of an entity referred to in (1): Provided further,
That none of the funds provided in this or any other Act may