applicable appropriations of a Department of Defense ac-
tivity in connection with the acquisition of critical low den-
sity repairables that are capitalized into the Navy Working
Capital Fund.
SEC. 8088. 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 oper-
ation of the military department or defense agency with
which the invoice or contract payment is associated.
SEC. 8089. At the time the President submits his
budget for fiscal year 2000 and any fiscal year thereafter,
the Department of Defense shall transmit to the congres-
sional 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 budg-
et 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 that fiscal
year.
SEC. 8090. None of the funds appropriated in title
IV of this Act may be used to procure end-items for deliv-
ery to military forces for operational training, operational
use or inventory requirements: Provided, That this restric-
tion does not apply to end-items used in development,
prototyping, and test activities preceding and leading to
acceptance for operational use: Provided further, That this
restriction does not apply to programs funded within the
National Foreign Intelligence Program: Provided further,
That the Secretary of Defense may waive this restriction
on a case-by-case basis by certifying in writing to the
Committees on Appropriations of the House of Represent-
atives and the Senate that it is in the national security
interest to do so.
SEC. 8091. None of the funds made available in this
Act may be obligated or expended to enter into or renew
a contract with a contractor that is subject to the report-
ing requirement set forth in subsection (d) of section 4212
of title 38, United States Code, but has not submitted the
most recent report required by such subsection for 1998
or a subsequent year.
SEC. 8092. None of the funds made available in this
Act may be used to approve or license the sale of the F–
22 advanced tactical fighter to any foreign government.
SEC. 8093. None of the funds appropriated or other-
wise made available by this Act may be made available
for the United States Man and the Biosphere Program,
or related projects.
SEC. 8094. Notwithstanding 31 U.S.C. 1552(a), of
the funds provided in Department of Defense Appropria-
tions Acts, not more than the specified amounts from the
following accounts shall remain available for the payment
of satellite on-orbit incentive fees until the fees are paid:
‘‘Missile Procurement, Air Force, 1995/1997’’,
$20,978,000; and
‘‘Missile Procurement, Air Force, 1996/1998’’,
$16,782,400.
SEC. 8095. None of the funds in this or any other
Act may be used by the National Imagery and Mapping
Agency for any mapping, charting, and geodesy activities
unless contracts for such services are awarded in accord-
ance with the qualifications based selection process in 40
U.S.C. 541 et seq. and 10 U.S.C. 2855: Provided, That
an exception shall be provided for such services that are
critical to national security after a written notification has
been submitted by the Deputy Secretary of Defense to the
Committees on Appropriations of the House of Represent-
atives and the Senate.
SEC. 8096. Funds made available to the Civil Air Pa-
trol in this Act under the heading ‘‘Drug Interdiction and
Counter-Drug Activities, Defense’’ may be used for the
Civil Air Patrol Corporation’s counterdrug program, in-
cluding its demand reduction program involving youth
programs, as well as operational and training drug recon-
naissance missions for federal, state and local government
agencies; for administrative costs, including the hiring of
Civil Air Patrol Corporation employees; for travel and per
diem expenses of Civil Air Patrol Corporation personnel
in support of those missions; and for equipment needed
for mission support or performance: Provided, That of
these funds, $300,000 shall be made available to establish
and operate a distance learning program: Provided further,
That the Department of the Air Force should waive reim-
bursement from the Federal, State and local government
agencies for the use of these funds.
SEC. 8097. The Secretary of Defense shall undertake
a review of all distributed learning education and training
programs in the Department of Defense and shall issue
a plan to implement a department-wide, standardized,
cost-effective Advanced Distributed Learning framework
to achieve the goals of commonality, interoperability, and
reuse: Provided, That the Secretary shall report to Con-
gress on the results of this review and present a detailed
implementation and budget plan no later than July 30,
1999.
SEC. 8098. None of the funds in this Act may be
available for the purchase by the Department of Defense
of cross deck pendants for arresting aircraft on U.S. Navy
aircraft carriers unless such cross deck pendants are man-
ufactured in the United States from components which are
substantially manufactured in the United States: Pro-
vided, That when adequate domestic supplies are not
available to meet Department of Defense requirements on
a timely basis, the Secretary of the military department
responsible for the procurement may waive this restriction
on a case-by-case basis by certifying in writing to the
Committees on Appropriations of the House of Represent-
atives and the Senate that such an acquisition must be
made in order to acquire capability for national security
purposes.
SEC. 8099. None of the funds in this or any other
Act shall be available to any Reserve Component to estab-
lish new activities to perform depot level maintenance and
remanufacture of any equipment in the Department of De-
fense inventory unless the Secretary of Defense first cer-
tifies to the Committees on Appropriations of the House
of Representatives and the Senate, on a case-by-case basis,
that (a) insufficient workload capacity is available at exist-
ing government or private sector depot maintenance facili-
ties currently used by the Reserve Components for similar
work; and (b) an in-depth analysis has been performed
comparing the cost of any proposed expansion of depot
facilities versus the cost of performing the same work at
existing depot facilities or by the private sector.
SEC. 8100. Notwithstanding any other provision of
law, the TRICARE managed care support contracts in ef-
fect, or in final stages of acquisition as of September 30,
1998, may be extended for two years: Provided, That any
such extension may only take place if the Secretary of De-
fense determines that it is in the best interest of the gov-
ernment: Provided further, That any contract extension
shall be based on the price in the final best and final offer
for the last year of the existing contract as adjusted for
inflation and other factors mutually agreed to by the con-
tractor and the government: Provided further, That not-
withstanding any other provision of law, all future
TRICARE managed care support contracts replacing con-
tracts in effect, or in the final stages of acquisition as of
September 30, 1998, may include a base contract period
for transition and up to seven one-year option periods.
SEC. 8101. Notwithstanding any other provision in
this Act, the total amount appropriated in this Act is here-
by reduced by $204,100,000 to reflect savings from re-
vised economic assumptions, to be distributed as follows:
‘‘Aircraft Procurement, Army’’, $4,000,000;
‘‘Missile Procurement, Army’’, $4,000,000;
‘‘Procurement of Weapons and Tracked Combat
Vehicles, Army’’, $4,000,000;
‘‘Procurement 
of 
Ammunition, 
Army’’,
$3,000,000;
‘‘Other Procurement, Army’’, $9,000,000;
‘‘Aircraft Procurement, Navy’’, $22,000,000;
‘‘Weapons Procurement, Navy’’, $4,000,000;
‘‘Procurement of Ammunition, Navy and Ma-
rine Corps’’, $1,000,000;
‘‘Shipbuilding 
and 
Conversion, 
Navy’’,
$18,000,000;
‘‘Other Procurement, Navy’’, $12,000,000;
‘‘Procurement, Marine Corps’’, $2,000,000;
‘‘Aircraft 
Procurement, 
Air 
Force’’,
$23,000,000;
‘‘Missile Procurement, Air Force’’, $5,200,000;
‘‘Procurement of Ammunition, Air Force’’,
$1,000,000;
‘‘Other Procurement, Air Force’’, $4,900,000;
‘‘Procurement, Defense-Wide’’, $5,100,000;
‘‘Chemical Agents and Munitions Destruction,
Army’’, $3,000,000;
‘‘Research, Development, Test and Evaluation,
Army’’, $10,000,000;
‘‘Research, Development, Test and Evaluation,
Navy’’, $18,500,000;
‘‘Research, Development, Test and Evaluation,
Air Force’’, $26,300,000; and
‘‘Research, Development, Test and Evaluation,
Defense-Wide’’, $24,100,000:
Provided, That these reductions shall be applied propor-
tionally to each budget activity, activity group and sub-
activity group and each program, project, and activity
within each appropriation account.
SEC. 8102. (a) TRANSFERS
OF
VESSELS
BY
GRANT.—The Secretary of the Navy is authorized to
transfer vessels to foreign countries on a grant basis under
section 516 of the Foreign Assistance Act of 1961 (22
U.S.C. 2321j) as follows:
(1) To the Government of Argentina, the NEW-
PORT class tank landing ship NEWPORT (LST
1179).
(2) To the Government of Greece—
(A) the KNOX class frigate HEPBURN
(FF 1055); and
(B) the ADAMS class guided missile de-
stroyers STRAUSS (DDG 16), SEMMS (DDG
18), and WADDELL (DDG 24).
(3) To the Government of Portugal, the STAL-
WART class ocean surveillance ship ASSURANCE
(T-AGOS 5).
(4) To the Government of Turkey, the KNOX
class frigates PAUL (FF 1080), MILLER (FF
1091), and W.S. SIMMS (FF 1059).
(b) TRANSFERS OF VESSELS BY SALE.—The Sec-
retary of the Navy is authorized to transfer vessels to for-
eign countries on a sales basis under section 21 of the
Arms Export Control Act (22 U.S.C. 2761) as follows:
(1) To the Government of Brazil, the NEW-
PORT class tank landing ships CAYUGA (LST
1186) and PEORIA (LST 1183).
(2) To the Government of Chile—
(A) the NEWPORT class tank landing
ship SAN BERNARDINO (LST 1189); and
(B) the auxiliary repair dry dock WATER-
FORD (ARD 5).
(3) To the Government of Greece—
(A) the OAK RIDGE class medium dry
dock ALAMAGORDO (ARDM 2); and
(B) the KNOX class frigates VREELAND
(FF 1068) and TRIPPE (FF 1075).
(4) To the Government of Mexico—
(A) 
the 
auxiliary 
repair 
dock 
SAN
ONOFRE (ARD 30); and
(B) the KNOX class frigate PHARRIS
(FF 1094).
100
(5) To the Government of the Philippines, the
STALWART class ocean surveillance ship TRI-
UMPH (T-AGOS 4).
(6) To the Government of Spain, the NEW-
PORT class tank landing ships HARLAN COUNTY
(LST 1196) and BARNSTABLE COUNTY (LST
1197).
(7) To the Taipai Economic and Cultural Rep-
resentative Office in the United States (the Taiwan
instrumentality that is designated pursuant to sec-
tion 10(a) of the Taiwan Relations Act)—
(A) the KNOX class frigates PEARY (FF
1073), JOSEPH HEWES (FF 1078), COOK
(FF 1083), BREWTON (FF 1086), KIRK
(FF 1987), and BARBEY (FF 1088);
(B) the NEWPORT class tank landing
ships MANITOWOC (LST 1180) and SUM-
TER (LST 1181);
(C) the floating dry dock COMPETENT
(AFDM 6); and
(D) the ANCHORAGE class dock landing
ship PENSACOLA (LSD 38).
(8) To the Government of Turkey—
(A) the OLIVER HAZARD PERRY class
guided missile frigates MAHLON S. TISDALE
101
(FFG 27), REID (FFG 30), and DUNCAN
(FFG 10); and
(B) the KNOX class frigates REASONER
(FF 1063), FANNING (FF 1076), BOWEN
(FF 1079), MCCANDLESS (FF 1084), DON-
ALD BEARY (FF 1085), AINSWORTH (FF
1090), THOMAS C. HART (FF 1092), and
CAPODANNO (FF 1093).
(9) To the Government of Venezuela, the me-
dium auxiliary floating dry dock bearing hull num-
ber AFDM 2.
(c) TRANSFERS OF VESSELS ON A COMBINED LEASE-
SALE BASIS.—The Secretary of the Navy is authorized
to transfer vessels to foreign countries on a combined
lease-sale basis under sections 61 and 21 of the Arms Ex-
port Control Act (22 U.S.C. 2796, 2761) and in accord-
ance with subsection (d) as follows:
(1) To the Government of Brazil, the CIM-
ARRON class oiler MERRIMACK (AO 179).
(2) To the Government of Greece, the KIDD
class guided missile destroyers KIDD (DDG 993),
CALLAGHAN (DDG 994), SCOTT (DDG 995),
and CHANDLER (DDG 996).
(d) CONDITIONS RELATING TO COMBINED LEASE-
SALE TRANSFERS.—A transfer of a vessel on a combined
102
lease-sale basis authorized by subsection (c) shall be made
in accordance with the following provisions, which the Sec-
retary shall include in the terms of any agreement with
the recipient country for such transfer of the vessel:
(1) The Secretary may initially transfer the ves-
sel by lease, with lease payments suspended for the
term of the lease, while simultaneously entering into
a foreign military sales agreement for the transfer of
title to the vessel.
(2) The Secretary may not deliver title to the
vessel until the purchase price of the vessel under
such a sales agreement is paid in full.
(3) Upon payment of the purchase price in full
under such a sales agreement and delivery of title to
the recipient country, the Secretary shall terminate
the lease.
(4) If the purchasing country fails to make full
payment of the purchase price in accordance with
the sales agreement—
(A) the sales agreement shall be imme-
diately terminated;
(B) the suspension of lease payments
under the lease shall be vacated; and
(C) the United States shall be entitled to
retain funds received under the sales agreement
103
in such amounts as necessary to cover the
amount of lease payments due and payable
under the lease and all other costs required by
the lease to be paid as of the date of the sales
agreement termination.
(5) If a sales agreement is terminated pursuant
to paragraph (4), the United States shall not be re-
quired to pay any interest to the recipient country
on any amount paid to the United States by the re-
cipient country under the sales agreement and not
retained by the United States under the lease.
(e) FUNDING FOR CERTAIN COSTS OF TRANSFERS.—
There is established in the Treasury of the United States
a special account to be known as the Defense Vessels
Transfer Program Account. There is hereby appropriated
into that account such sums as may be necessary for the
costs (as defined in section 502 of the Congressional
Budget Act of 1974 (2 U.S.C. 661a)) of the lease-sale
transfers authorized by subsection (d). Funds in that ac-
count are available only for the purpose of covering those
costs.
(f) WAIVER OF REQUIREMENTS FOR NOTIFICATION
TO CONGRESS.—Section 516(f) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2321j(f)), section 525 of the For-
eign Operations, Export Financing, and Related Programs
104
Appropriations Act, 1998 (Public Law 105–118; 111 Stat.
2412), and any similar, successor provision of law do not
apply with respect to the transfers authorized by this sec-
tion.
(g) INAPPLICABILITY OF AGGREGATE ANNUAL LIMI-
TATION ON VALUE OF TRANSFERRED EXCESS DEFENSE
ARTICLES.—In the case of the transfer of a vessel author-
ized by subsection (a) to be made by grant under section
516 of the Foreign Assistance Act of 1961 (22 U.S.C.
2321j), the value of the vessel transferred shall not be in-
cluded for purposes of subsection (g) of that section in
the aggregate value of excess defense articles transferred
to countries under that section in any fiscal year.
(h) COSTS OF TRANSFERS.—Any expense incurred by
the United States in connection with a transfer authorized
by this section shall be charged to the recipient.
(i) REPAIR
AND
REFURBISHMENT
IN
UNITED
STATES SHIPYARDS.—To the maximum extent prac-
ticable, the Secretary of the Navy shall require, as a condi-
tion of the transfer of a vessel under this section, that
the country to which the vessel is transferred have such
repair or refurbishment of the vessel as is needed, before
the vessel joins the naval forces of that country, performed
at a shipyard located in the United States, including a
United States Navy shipyard.
105
(j) EXPIRATION OF AUTHORITY.—The authority to
transfer vessels under this section shall expire at the end
of the two-year period beginning on the date of the enact-
ment of this Act.
SEC. 8103. None of the funds in this Act may be
used to compensate an employee of the Department of De-
fense who initiates a new start program without notifica-
tion to the Office of the Secretary of Defense and the con-
gressional defense committees, as required by Department
of Defense financial management regulations.
(INCLUDING TRANSFER OF FUNDS)
SEC. 8104. Of the funds made available under title
II of this Act, the following amounts shall be transferred
to the Defense Working Capital Funds for the purpose
of funding operations of the Defense Commissary Agency:
‘‘Operation 
and 
Maintenance, 
Army’’,
$338,400,000;
‘‘Operation 
and 
Maintenance, 
Navy’’,
$255,000,000;
‘‘Operation and Maintenance, Marine Corps’’,
$86,600,000; and
‘‘Operation and Maintenance, Air Force’’,
$302,071,000:
Provided, That the transfer authority provided in this sec-
tion is in addition to any other transfer authority con-
tained elsewhere in this Act.
106
SEC. 8105. Of the amounts made available in title
II of this Act under the heading ‘‘Operation and Mainte-
nance, Navy’’, $20,000,000 is available only for emergency
and extraordinary expenses associated with the accident
involving a United States Marine Corps A–6 aircraft on
February 3, 1998, near Cavalese, Italy: Provided, That
these funds shall remain available until expended: Pro-
vided further, That notwithstanding any other provision
of law, the funds made available by this section shall be
available only for payments to persons, communities, or
other entities in Italy only for reimbursement for damages
resulting from the expenses associated with the accident
involving a United States Marine Corps A–6 aircraft on
February 3, 1998, near Cavalese, Italy: Provided further,
That notwithstanding any other provision of law, funds
made available under this section may be used to rebuild
or replace the funicular system in Cavalese destroyed on
February 3, 1998 by that aircraft: Provided further, That
any amount paid to any individual or entity from the
amount appropriated under this section shall be credited
against any amount subsequently determined to be pay-
able to that individual or entity under chapter 163 of title
10, United States Code, section 127 of that title, or any
other authority provided by law for administrative settle-
ment of claims against the United States with respect to
107
damages arising from the accident described in this sec-
tion: Provided further, That payment of an amount under
this section shall not be considered to constitute a state-
ment of legal liability on the part of the United States
or otherwise to prejudge any judicial proceeding or inves-
tigation arising from the accident described in this section.
SEC. 8106. No funds appropriated or otherwise made
available by this Act may be used to initiate or conduct
offensive military operations by United States Armed
Forces except in accordance with the war powers clause
of the Constitution (article 1, section 8), which vests in
Congress the power to declare and authorize war and to
take certain specified, related decisions.
SEC. 8107. (a) ENSURING YEAR 2000 COMPLIANCE
OF INFORMATION TECHNOLOGY AND NATIONAL SECU-
RITY SYSTEMS.—(1) None of the funds appropriated or
otherwise made available by this Act may (except as pro-
vided in paragraph (2)) be obligated or expended on the
development or modernization of any information tech-
nology or national security system of the Department of
Defense in use by the Department of Defense (whether
or not the system is a mission critical system) if that sys-
tem does not meet certification level 1a, 1b, or 2 (as pre-
scribed in the April 1997 publication of the Department
of Defense entitled ‘‘Year 2000 Management Plan’’).
108
(2) The limitation in paragraph (1) does not apply
to an obligation or expenditure—
(A) that is directly related to ensuring that a
system achieves year 2000 compliance;
(B) for a system that is being developed and
fielded to replace before January 1, 2000, a non-
compliant system or a system to be terminated in
accordance with the May 1998 Department of De-
fense quarterly report on the status of year 2000
compliance; or
(C) for a particular change that is specifically
required by law or that is specifically directed by the
Secretary of Defense.
(b) UNALLOCATED REDUCTIONS OF FUNDS NOT TO
APPLY TO MISSION CRITICAL SYSTEMS.—Funds appro-
priated or otherwise made available by this Act for mission
critical systems are not subject to any unallocated reduc-
tion of funds made by or otherwise applicable to funds
provided in this Act.
(c) CURRENT
SERVICES
OPERATIONS
NOT
AF-
FECTED.—Subsection (a) does not prohibit the obligation
or expenditure of funds for current services operations of
information technology and national security systems.
(d) WAIVER AUTHORITY.—The Secretary of Defense
may waive subsection (a) on a case-by-case basis with re-
111
section 180203 of the Department of Defense Fi-
nancial Management Regulation (DOD 7000.14–R),
but does not include any matter covered by subpara-
graph 3 of that paragraph.
(4) The term ‘‘current services’’ has the mean-
ing given that term in paragraph C of section
180203 of the Department of Defense Financial
Management Regulation (DOD 7000.14–R).
(5) The term ‘‘mission critical system’’ means
an information technology or national security sys-
tem that is designated as mission critical in the May
1998 Department of Defense quarterly report on the
status of year 2000 compliance.
SEC. 8108. (a) PLAN FOR SIMULATION OF YEAR
2000 IN MILITARY EXERCISES.—Not later than Decem-
ber 15, 1998, the Secretary of Defense shall submit to
Congress a plan for the execution of a simulated year
2000 as part of military exercises described in subsection
(c) in order to evaluate, in an operational environment,
the extent to which information technology and national
security systems involved in those exercises will success-
fully operate during the actual year 2000, including the
ability of those systems to access and transmit information
from point of origin to point of termination.
112
(b) EVALUATION OF COMPLIANCE IN SELECTED EX-
ERCISES.—In conducting the military exercises described
in subsection (c), the Secretary of Defense shall ensure
that at least 25 of those exercises (referred to in this sec-
tion as ‘‘Year 2000 simulation exercises’’) are conducted
so as to include a simulated year 2000 in accordance with
the plan submitted under subsection (a). The Secretary
of Defense shall ensure that at least two of those exercises
are conducted by the commander of each unified or speci-
fied combatant command.
(c) COVERED MILITARY EXERCISES.—A military ex-
ercise referred to in subsections (a) and (b) is a military
exercise conducted by the Department of Defense, during
the period beginning on January 1, 1999, and ending on
September 30, 1999—
(1) under the training exercises program known
as the ‘‘CJCS Exercise Program’’;
(2) at the Naval Strike and Air Warfare Cen-
ter, the Army National Training Center, or the Air
Force Air Warfare Center; or
(3) as part of Naval Carrier Group fleet train-
ing or Marine Corps Expeditionary Unit training.
(d) AUTHORITY FOR EXCLUSION OF SYSTEMS NOT
CAPABLE OF PERFORMING RELIABLY IN YEAR 2000 SIM-
ULATION.—(1) In carrying out a Year 2000 simulation ex-
113
ercise, the Secretary of Defense may exclude a particular
information technology or national security system from
the year 2000 simulation phase of the exercise if the Sec-
retary determines that the system would be incapable of
performing reliably during the year 2000 simulation phase
of the exercise. In such a case, the system excluded shall
be replaced in accordance with the year 2000 contingency
plan for the system.
(2) If the Secretary of Defense excludes an informa-
tion technology or national security system from the year
2000 simulation phase of an exercise as provided in para-
graph (1), the Secretary shall notify Congress of that ex-
clusion not later than two weeks before commencing that
exercise. The notice shall include a list of each information
technology or national security system excluded from the
exercise, a description of how the exercise will use the year
2000 contingency plan for each such system, and a de-
scription of the effect that continued year 2000 non-
compliance of each such system would have on military
readiness.
(3) An information technology or national security
system with cryptological applications that is not capable
of having its internal clock adjusted forward to a simu-
lated later time is exempt from the year 2000 simulation
phase of an exercise under this section.
114
(e) DEFINITIONS.—For the purposes of this section:
(1) The term ‘‘information technology’’ has the
meaning given that term in section 5002 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
(2) The term ‘‘national security system’’ has
the meaning given that term in section 5142 of such
Act (40 U.S.C. 1452).
SEC. 8109. During the current fiscal year and here-
after, no funds appropriated or otherwise available to the
Department of Defense may be used to award a contract
to, extend a contract with, or approve the award of a sub-
contract to any person who within the preceding 15 years
has been convicted under section 704 of title 18, United
States Code, of the unlawful manufacture or sale of the
Congressional Medal of Honor.
SEC. 8110. None of the funds appropriated or other-
wise made available by this Act may be used for the trans-
portation into the United States of polychlorinated
biphenyls manufactured outside the United States and
owned by the Department of Defense except as provided
for in section 6(e) of the Toxic Substances Control Act
(15 U.S.C. 2605(e)).
SEC. 8111. None of the funds appropriated or other-
wise made available by this Act may be used to enter into
or renew a contract with any company owned, or partially
115
owned, by the People’s Republic of China or the People’s
Liberation Army of the People’s Republic of China.
This Act may be cited as the ‘‘Department of Defense
Appropriations Act, 1999’’.
Passed the House of Representatives June 24, 1998.
Attest:
Clerk.