H. R. 3616—197
‘‘(B) Amounts for depreciation of capital assets, set in
accordance with generally accepted accounting principles.
‘‘(2) Charges for goods and services provided through a working-
capital fund may not include the following:
‘‘(A) Amounts necessary to recover the costs of a military
construction project (as defined in section 2801(b) of this title),
other than a minor construction project financed by the fund
pursuant to section 2805(c)(1) of this title.
‘‘(B) Amounts necessary to cover costs incurred in connec-
tion with the closure or realignment of a military installation.
‘‘(C) Amounts necessary to recover the costs of functions
designated by the Secretary of Defense as mission critical,
such as ammunition handling safety, and amounts for ancillary
tasks not directly related to the mission of the function or
activity managed through the fund.
‘‘(p) PROCEDURES FOR ACCUMULATION
OF FUNDS.—The Sec-
retary of Defense, with respect to each working-capital fund of
a Defense Agency, and the Secretary of a military department,
with respect to each working-capital fund of the military depart-
ment, shall establish billing procedures to ensure that the balance
in that working-capital fund does not exceed the amount necessary
to provide for the working-capital requirements of that fund, as
determined by the Secretary.
‘‘(q) ANNUAL REPORTS AND BUDGET.—The Secretary of Defense,
with respect to each working-capital fund of a Defense Agency,
and the Secretary of each military department, with respect to
each working-capital fund of the military department, shall
annually submit to Congress, at the same time that the President
submits the budget under section 1105 of title 31, the following:
‘‘(1) A detailed report that contains a statement of all
receipts and disbursements of the fund (including such a state-
ment for each subaccount of the fund) for the fiscal year ending
in the year preceding the year in which the budget is submitted.
‘‘(2) A detailed proposed budget for the operation of the
fund for the fiscal year for which the budget is submitted.
‘‘(3) A comparison of the amounts actually expended for
the operation of the fund for the fiscal year referred to in
paragraph (1) with the amount proposed for the operation of
the fund for that fiscal year in the President’s budget.
‘‘(4) A report on the capital asset subaccount of the fund
that contains the following information:
‘‘(A) The opening balance of the subaccount as of the
beginning of the fiscal year in which the report is submit-
ted.
‘‘(B) The estimated amounts to be credited to the sub-
account in the fiscal year in which the report is submitted.
‘‘(C) The estimated amounts of outlays to be paid out
of the subaccount in the fiscal year in which the report
is submitted.
‘‘(D) The estimated balance of the subaccount at the
end of the fiscal year in which the report is submitted.
‘‘(E) A statement of how much of the estimated balance
at the end of the fiscal year in which the report is submitted
will be needed to pay outlays in the immediately following
fiscal year that are in excess of the amount to be credited
to the subaccount in the immediately following fiscal year.’’.
H. R. 3616—198
(b) REPEAL OF AUTHORITY TO MANAGE THROUGH THE DEFENSE
BUSINESS OPERATIONS FUND.—Section 2216a of title 10, United
States Code, and the item relating to that section in the table
of sections at the beginning of chapter 131 of such title, are repealed.
SEC. 1009. CLARIFICATION OF AUTHORITY TO RETAIN RECOVERED
COSTS OF DISPOSALS IN WORKING-CAPITAL FUNDS.
Section 2210(a) of title 10, United States Code, is amended
to read as follows:
‘‘(a)(1) A working-capital fund established pursuant to section
2208 of this title may retain so much of the proceeds of disposals
of property referred to in paragraph (2) as is necessary to recover
the expenses incurred by the fund in disposing of such property.
Proceeds from the sale or disposal of such property in excess of
amounts necessary to recover the expenses may be credited to
current applicable appropriations of the Department of Defense.
‘‘(2) Paragraph (1) applies to disposals of supplies, material,
equipment, and other personal property that were not financed
by stock funds established under section 2208 of this title.’’.
SEC. 1010. CREDITING OF AMOUNTS RECOVERED FROM THIRD PAR-
TIES FOR LOSS OR DAMAGE TO PERSONAL PROPERTY
SHIPPED OR STORED AT GOVERNMENT EXPENSE.
(a) IN GENERAL.—(1) Chapter 163 of title 10, United States
Code, is amended by adding at the end the following new section:
‘‘§ 2739. Amounts recovered from third parties for loss or
damage to personal property shipped or stored
at Government expense: crediting to appropria-
tions
‘‘(a) CREDITING
OF
COLLECTIONS.—Any qualifying military
department third-party collection shall be credited to the appro-
priate current appropriation. Amounts so credited shall be merged
with the funds in that appropriation and shall be available for
the same period and purposes as the funds with which merged.
‘‘(b) APPROPRIATE CURRENT APPROPRIATION.—For purposes of
subsection (a), the appropriate current appropriation with respect
to a qualifying military department third-party collection is the
appropriation currently available, as of the date of the collection,
for the payment of claims by that military department for loss
or damage of personal property shipped or stored at Government
expense.
‘‘(c) QUALIFYING MILITARY DEPARTMENT THIRD-PARTY COLLEC-
TIONS.—For purposes of subsection (a), a qualifying military
department third-party collection is any amount that a military
department collects under sections 3711, 3716, 3717, and 3721
of title 31 from a third party for a loss or damage to personal
property that occurred during shipment or storage of the property
at Government expense and for which the Secretary of the military
department paid the owner in settlement of a claim.’’.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:
‘‘2739. Amounts recovered from third parties for loss or damage to personal property
shipped or stored at Government expense: crediting to appropriations.’’.
(b) EFFECTIVE DATE.—Section 2739 of title 10, United States
Code, as added by subsection (a), applies with respect to amounts
H. R. 3616—199
collected by a military department on or after the date of the
enactment of this Act.
Subtitle B—Naval Vessels and Shipyards
SEC. 1011. REVISION TO REQUIREMENT FOR CONTINUED LISTING OF
TWO IOWA-CLASS BATTLESHIPS ON THE NAVAL VESSEL
REGISTER.
In carrying out section 1011 of the National Defense Authoriza-
tion Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 421),
the Secretary of the Navy shall list on the Naval Vessel Register,
and maintain on that register, the following two Iowa-class battle-
ships: the U.S.S. IOWA (BB–61) and the U.S.S. WISCONSIN (BB–
64).
SEC. 1012. TRANSFER OF U.S.S. NEW JERSEY.
The Secretary of the Navy shall strike the U.S.S. NEW JERSEY
(BB–62) from the Naval Vessel Register and shall transfer that
vessel to a non-for-profit entity in accordance with section 7306
of title 10, United States Code. The Secretary shall require as
a condition of the transfer of that vessel that the transferee locate
the vessel in the State of New Jersey.
SEC. 1013. HOMEPORTING OF THE U.S.S. IOWA IN SAN FRANCISCO,
CALIFORNIA.
It is the sense of Congress that the U.S.S. IOWA (BB–61)
should be homeported at the Port of San Francisco, California.
SEC. 1014. SENSE OF CONGRESS CONCERNING THE NAMING OF AN
LPD–17 VESSEL.
It is the sense of Congress that, consistent with section 1018
of the National Defense Authorization Act for Fiscal Year 1996
(Public Law 104–106; 110 Stat. 425), the Secretary of the Navy
should name the next vessel of the LPD–17 class of amphibious
vessels to be named after the date of the enactment of this Act
as the U.S.S. Clifton B. Cates, in honor of former Commandant
of the Marine Corps Clifton B. Cates (1893–1970), a native of
Tennessee whose distinguished career of service in the Marine
Corps included combat service in World War I so heroic that he
became the most decorated Marine Corps officer of that war, exem-
plary combat leadership in the Pacific theater during World War
II from Guadalcanal to Tinian and Iwo Jima and beyond, and
appointment in 1948 as the 19th Commandant of the Marine Corps
with the rank of lieutenant general, a position from which he
led the efficient and alacritous response of the Marine Corps to
the invasion of the Republic of South Korea by Communist North
Korea.
SEC. 1015. REPORTS ON NAVAL SURFACE FIRE-SUPPORT CAPABILI-
TIES.
(a) NAVY REPORT.—(1) Not later than March 31, 1999, the
Secretary of the Navy shall submit to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives a report on battleship readiness
for meeting requirements of the Armed Forces for naval surface
fire support.
(2) The report shall contain the following:
H. R. 3616—200
(A) The reasons for the Secretary’s failure to comply with
the requirements of section 1011 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104–106;
110 Stat. 421) until February 1998.
(B) The requirements for specialized air-naval gunfire liai-
son units.
(C) The plans of the Navy for retaining and maintaining
16-inch ammunition for the main guns of battleships.
(D) The plans of the Navy for retaining the hammerhead
crane essential for lifting battleship turrets.
(E) An estimate of the cost of reactivating Iowa-class battle-
ships for listing on the Naval Vessel Register, restoring the
vessels to seaworthiness with operational capabilities necessary
to meet requirements for naval surface fire-support, and
maintaining the battleships in that condition for continued
listing on the register, together with an estimate of the time
necessary to reactivate and restore the vessels to that condition.
(F) An assessment of the short-term costs and the long-
term costs associated with alternative methods for executing
the naval surface fire-support mission of the Navy, including
the alternative of reactivating two battleships.
(3) The Secretary shall act through the Director of Expedition-
ary Warfare Division (N85) of the Office of the Chief of Naval
Operations in preparing the report.
(b) GAO REPORT.—(1) The Comptroller General shall submit
to the Committee on Armed Services of the Senate and the Commit-
tee on National Security of the House of Representatives a report
on the naval surface fire-support capabilities of the Navy.
(2) The report shall contain the following:
(A) An assessment of the extent of the compliance by the
Secretary of the Navy with the requirements of section 1011
of the National Defense Authorization Act for Fiscal Year 1996
(Public Law 104–106; 110 Stat. 421).
(B) The plans of the Navy for executing the naval surface
fire-support mission of the Navy.
(C) An assessment of the short-term costs and the long-
term costs associated with the plans.
(D) An analysis of the assessment required under sub-
section (a)(2)(F).
SEC. 1016. LONG-TERM CHARTER OF THREE VESSELS IN SUPPORT
OF SUBMARINE RESCUE, ESCORT, AND TOWING.
The Secretary of the Navy may enter into contracts in accord-
ance with section 2401 of title 10, United States Code, for the
charter through September 30, 2003, of the following vessels:
(1) The CAROLYN CHOUEST (United States official num-
ber D102057).
(2) The KELLIE CHOUEST (United States official number
D1038519).
(3) The DOLORES CHOUEST (United States official num-
ber D600288).
SEC. 1017. TRANSFER OF OBSOLETE ARMY TUGBOAT.
In carrying out section 1023 of the National Defense Authoriza-
tion Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat. 1876),
the Secretary of the Army may substitute the obsolete, decommis-
sioned tugboat Attleboro (LT–1977) for the tugboat Normandy (LT–