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notification 30 calendar days in session in advance to the
congressional defense committees.
SEC. 8008. None of the funds contained in this Act
available for the Civilian Health and Medical Program of
the Uniformed Services shall be available for payments to
physicians and other non-institutional health care provid-
ers in excess of the amounts allowed in fiscal year 1996
for similar services, except that: (a) for services for which
the Secretary of Defense determines an increase is justified
by economic circumstances, the allowable amounts may be
increased in accordance with appropriate economic index
data similar to that used pursuant to title XVIII of the
Social Security Act; and (b) for services the Secretary deter-
mines are overpriced based on allowable payments under
title XVIII of the Social Security Act, the allowable
amounts shall be reduced by not more than 15 percent (ex-
cept that the reduction may be waived if the Secretary de-
termines that it would impair adequate access to health
care services for beneficiaries). The Secretary shall solicit
public comment prior to promulgating regulations to imple-
ment this section. Such regulations shall include a limita-
tion, similar to that used under title XVIII of the Social
Security Act, on the extent to which a provider may bill
a beneficiary an actual charge in excess of the allowable
amount.
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SEC. 8009. None of the funds provided in this Act shall
be available to initiate (1) a multiyear contract that em-
ploys economic order quantity procurement in excess of
$20,000,000 in any one year of the contract or that includes
an unfunded contingent liability in excess of $20,000,000,
or (2) a contract for advance procurement leading to a
multiyear contract that employs economic order quantity
procurement in excess of $20,000,000 in any one year, un-
less the congressional defense committees have been notified
at least thirty days in advance of the proposed contract
award: Provided, That no part of any appropriation con-
tained in this Act shall be available to initiate a multiyear
contract for which the economic order quantity advance
procurement is not funded at least to the limits of the Gov-
ernment’s liability: Provided further, That no part of any
appropriation contained in this Act shall be available to
initiate multiyear procurement contracts for any systems
or component thereof if the value of the multiyear contract
would exceed $500,000,000 unless specifically provided in
this Act: Provided further, That no multiyear procurement
contract can be terminated without 10-day prior notifica-
tion to the congressional defense committees: Provided fur-
ther, That the execution of multiyear authority shall require
the use of a present value analysis to determine lowest cost
compared to an annual procurement.
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Funds appropriated in title III of this Act may be
used for multiyear procurement contracts as follows:
Javelin missiles;
Arleigh Burke (DDG–51) class destroyers;
MK19–3 grenade machine guns;
M16A2 rifles;
M249 Squad Automatic Weapons;
M4 carbine rifles; and
M240B machine guns.
SEC. 8010. Within the funds appropriated for the oper-
ation and maintenance of the Armed Forces, funds are here-
by appropriated pursuant to section 401 of title 10, United
States Code, for humanitarian and civic assistance costs
under chapter 20 of title 10, United States Code. Such funds
may also be obligated for humanitarian and civic assist-
ance costs incidental to authorized operations and pursuant
to authority granted in section 401 of chapter 20 of title
10, United States Code, and these obligations shall be re-
ported to Congress on September 30 of each year: Provided,
That funds available for operation and maintenance shall
be available for providing humanitarian and similar assist-
ance by using Civic Action Teams in the Trust Territories
of the Pacific Islands and freely associated states of Micro-
nesia, pursuant to the Compact of Free Association as au-
thorized by Public Law 99–239: Provided further, That
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upon a determination by the Secretary of the Army that
such action is beneficial for graduate medical education
programs conducted at Army medical facilities located in
Hawaii, the Secretary of the Army may authorize the pro-
vision of medical services at such facilities and transpor-
tation to such facilities, on a nonreimbursable basis, for ci-
vilian patients from American Samoa, the Commonwealth
of the Northern Mariana Islands, the Marshall Islands, the
Federated States of Micronesia, Palau, and Guam.
SEC. 8011. (a) During fiscal year 1997, the civilian
personnel of the Department of Defense may not be man-
aged on the basis of any end-strength, and the management
of such personnel during that fiscal year shall not be subject
to any constraint or limitation (known as an end-strength)
on the number of such personnel who may be employed on
the last day of such fiscal year.
(b) The fiscal year 1998 budget request for the Depart-
ment of Defense as well as all justification material and
other documentation supporting the fiscal year 1998 De-
partment of Defense budget request shall be prepared and
submitted to the Congress as if subsections (a) and (b) of
this provision were effective with regard to fiscal year 1998.
(c) Nothing in this section shall be construed to apply
to military (civilian) technicians.
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SEC. 8012. Notwithstanding any other provision of
law, none of the funds made available by this Act shall be
used by the Department of Defense to exceed, outside the
fifty United States, its territories, and the District of Co-
lumbia, 125,000 civilian workyears: Provided, That
workyears shall be applied as defined in the Federal Person-
nel Manual: Provided further, That workyears expended in
dependent student hiring programs for disadvantaged
youths shall not be included in this workyear limitation.
SEC. 8013. None of the funds made available by this
Act shall be used in any way, directly or indirectly, to in-
fluence congressional action on any legislation or appro-
priation matters pending before the Congress.
SEC. 8014. (a) None of the funds appropriated by this
Act shall be used to make contributions to the Department
of Defense Education Benefits Fund pursuant to section
2006(g) of title 10, United States Code, representing the
normal cost for future benefits under section 3015(c) of title
38, United States Code, for any member of the armed serv-
ices who, on or after the date of enactment of this Act—
(1) enlists in the armed services for a period of
active duty of less than three years; or
(2) receives an enlistment bonus under section
308a or 308f of title 37, United States Code,
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nor shall any amounts representing the normal cost of such
future benefits be transferred from the Fund by the Sec-
retary of the Treasury to the Secretary of Veterans Affairs
pursuant to section 2006(d) of title 10, United States Code;
nor shall the Secretary of Veterans Affairs pay such benefits
to any such member: Provided, That in the case of a mem-
ber covered by clause (1), these limitations shall not apply
to members in combat arms skills or to members who enlist
in the armed services on or after July 1, 1989, under a
program continued or established by the Secretary of De-
fense in fiscal year 1991 to test the cost-effective use of spe-
cial recruiting incentives involving not more than nineteen
noncombat arms skills approved in advance by the Sec-
retary of Defense: Provided further, That this subsection ap-
plies only to active components of the Army.
(b) None of the funds appropriated by this Act shall
be available for the basic pay and allowances of any mem-
ber of the Army participating as a full-time student and
receiving benefits paid by the Secretary of Veterans Affairs
from the Department of Defense Education Benefits Fund
when time spent as a full-time student is credited toward
completion of a service commitment: Provided, That this
subsection shall not apply to those members who have reen-
listed with this option prior to October 1, 1987: Provided
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further, That this subsection applies only to active compo-
nents of the Army.
SEC. 8015. None of the funds appropriated by this Act
shall be available to convert to contractor performance an
activity or function of the Department of Defense that, on
or after the date of enactment of this Act, is performed by
more than ten Department of Defense civilian employees
until a most efficient and cost-effective organization analy-
sis is completed on such activity or function and certifi-
cation of the analysis is made to the Committees on Appro-
priations of the House of Representatives and the Senate:
Provided, That this section shall not apply to a commercial
or industrial type function of the Department of Defense
that: (1) is included on the procurement list established pur-
suant to section 2 of the Act of June 25, 1938 (41 U.S.C.
47), popularly referred to as the Javits-Wagner-O’Day Act;
(2) is planned to be converted to performance by a qualified
nonprofit agency for the blind or by a qualified nonprofit
agency for other severely handicapped individuals in ac-
cordance with that Act; or (3) is planned to be converted
to performance by a qualified firm under 51 percent Native
American ownership.
(TRANSFER OF FUNDS)
SEC. 8016. Funds appropriated in title III of this Act
for the Department of Defense Pilot Mentor-Protege Pro-
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gram may be transferred to any other appropriation con-
tained in this Act solely for the purpose of implementing
a Mentor-Protege Program developmental assistance agree-
ment pursuant to section 831 of the National Defense Au-
thorization Act for Fiscal Year 1991 (Public Law 101–510;
10 U.S.C. 2301 note), as amended, under the authority of
this provision or any other transfer authority contained in
this Act.
SEC. 8017. For fiscal year 1997, the total amount ap-
propriated in this Act to fund the Uniformed Services
Treatment Facilities program, operated pursuant to section
911 of Public Law 97–99 (42 U.S.C. 248c), shall not exceed
$331,380,000.
SEC. 8018. None of the funds appropriated by this Act
available for the Civilian Health and Medical Program of
the Uniformed Services (CHAMPUS) shall be available for
the reimbursement of any health care provider for inpatient
mental health service for care received when a patient is
referred to a provider of inpatient mental health care or
residential treatment care by a medical or health care pro-
fessional having an economic interest in the facility to
which the patient is referred: Provided, That this limitation
does not apply in the case of inpatient mental health serv-
ices provided under the program for the handicapped under
subsection (d) of section 1079 of title 10, United States
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Code, provided as partial hospital care, or provided pursu-
ant to a waiver authorized by the Secretary of Defense be-
cause of medical or psychological circumstances of the pa-
tient that are confirmed by a health professional who is not
a Federal employee after a review, pursuant to rules pre-
scribed by the Secretary, which takes into account the ap-
propriate level of care for the patient, the intensity of serv-
ices required by the patient, and the availability of that
care.
SEC. 8019. Funds available in this Act may be used
to provide transportation for the next-of-kin of individuals
who have been prisoners of war or missing in action from
the Vietnam era to an annual meeting in the United States,
under such regulations as the Secretary of Defense may pre-
scribe.
SEC. 8020. Notwithstanding any other provision of
law, during the current fiscal year, the Secretary of Defense
may, by Executive Agreement, establish with host nation
governments in NATO member states a separate account
into which such residual value amounts negotiated in the
return of United States military installations in NATO
member states may be deposited, in the currency of the host
nation, in lieu of direct monetary transfers to the United
States Treasury: Provided, That such credits may be uti-
lized only for the construction of facilities to support United
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States military forces in that host nation, or such real prop-
erty maintenance and base operating costs that are cur-
rently executed through monetary transfers to such host na-
tions: Provided further, That the Department of Defense’s
budget submission for fiscal year 1998 shall identify such
sums anticipated in residual value settlements, and identify
such construction, real property maintenance or base oper-
ating costs that shall be funded by the host nation through
such credits: Provided further, That all military construc-
tion projects to be executed from such accounts must be pre-
viously approved in a prior Act of Congress: Provided fur-
ther, That each such Executive Agreement with a NATO
member host nation shall be reported to the congressional
defense committees, the Committee on International Rela-
tions of the House of Representatives and the Committee
on Foreign Relations of the Senate thirty days prior to the
conclusion and endorsement of any such agreement estab-
lished under this provision.
SEC. 8021. None of the funds available to the Depart-
ment of Defense may be used to demilitarize or dispose of
any M–1 Carbines, M–1 Garand rifles, M–14 rifles, .22 cal-
iber rifles, .30 caliber rifles, or M–1911 pistols.
SEC. 8022. Notwithstanding any other provision of
law, none of the funds appropriated by this Act shall be
available to pay more than 50 percent of an amount paid
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to any person under section 308 of title 37, United States
Code, in a lump sum.
SEC. 8023. Of the funds made available by this Act
in title III, Procurement, $8,000,000, drawn pro rata from
each appropriations account in title III, shall be available
for incentive payments authorized by section 504 of the In-
dian Financing Act of 1974, 25 U.S.C. 1544. These pay-
ments shall be available only to contractors which have sub-
mitted subcontracting plans pursuant to 15 U.S.C. 637(d),
and according to regulations which shall be promulgated
by the Secretary of Defense within 90 days of the passage
of this Act.
SEC. 8024. During the current fiscal year, none of the
funds available to the Department of Defense may be used
to procure or acquire (1) defensive handguns unless such
handguns are the M9 or M11 9 mm Department of Defense
standard handguns, or (2) offensive handguns except for the
Special Operations Forces: Provided, That the foregoing
shall not apply to handguns and ammunition for marks-
manship competitions.
SEC. 8025. No more than $500,000 of the funds appro-
priated or made available in this Act shall be used for any
single relocation of an organization, unit, activity or func-
tion of the Department of Defense into or within the Na-
tional Capital Region: Provided, That the Secretary of De-
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fense may waive this restriction on a case-by-case basis 90
days after certifying in writing to the Congressional defense
committees that such a relocation is required in the best
interest of the Government.
SEC. 8026. During the current fiscal year, funds ap-
propriated or otherwise available for any Federal agency,
the Congress, the judicial branch, or the District of Colum-
bia may be used for the pay, allowances, and benefits of
an employee as defined by section 2105 of title 5 or an indi-
vidual employed by the government of the District of Co-
lumbia, permanent or temporary indefinite, who—
(1) is a member of a Reserve component of the
Armed Forces, as described in section 261 of title 10,
or the National Guard, as described in section 101 of
title 32;
(2) performs, for the purpose of providing mili-
tary aid to enforce the law or providing assistance to
civil authorities in the protection or saving of life or
property or prevention of injury—
(A) Federal service under sections 331, 332,
333, or 12406 of title 10, or other provision of
law, as applicable, or
(B) full-time military service for his or her
State, the District of Columbia, the Common-
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wealth of Puerto Rico, or a territory of the Unit-
ed States; and
(3) requests and is granted—
(A) leave under the authority of this section;
or
(B) annual leave, which may be granted
without regard to the provisions of sections 5519
and 6323(b) of title 5, if such employee is other-
wise entitled to such annual leave:
Provided, That any employee who requests leave under sub-
section (3)(A) for service described in subsection (2) of this
section is entitled to such leave, subject to the provisions
of this section and of the last sentence of section 6323(b)
of title 5, and such leave shall be considered leave under
section 6323(b) of title 5.
SEC. 8027. None of the funds appropriated by this Act
shall be available to perform any cost study pursuant to
the provisions of OMB Circular A–76 if the study being
performed exceeds a period of twenty-four months after ini-
tiation of such study with respect to a single function activ-
ity or forty-eight months after initiation of such study for
a multi-function activity.
SEC. 8028. Funds appropriated by this Act for the
American Forces Information Service shall not be used for
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any national or international political or psychological ac-
tivities.
SEC. 8029. Notwithstanding any other provision of
law or regulation, the Secretary of Defense may adjust wage
rates for civilian employees hired for certain health care
occupations as authorized for the Secretary of Veterans Af-
fairs by section 7455 of title 38, United States Code.
SEC. 8030. None of the funds appropriated or made
available in this Act shall be used to reduce or disestablish
the operation of the 53rd Weather Reconnaissance Squad-
ron of the Air Force Reserve, if such action would reduce
the WC–130 Weather Reconnaissance mission below the lev-
els funded in this Act.
SEC. 8031. (a) Of the funds for the procurement of sup-
plies or services appropriated by this Act, qualified non-
profit agencies for the blind or other severely handicapped
shall be afforded the maximum practicable opportunity to
participate as subcontractors and suppliers in the perform-
ance of contracts let by the Department of Defense.
(b) During the current fiscal year, a business concern
which has negotiated with a military service or defense
agency a subcontracting plan for the participation by small
business concerns pursuant to section 8(d) of the Small
Business Act (15 U.S.C. 637(d)) shall be given credit to-
ward meeting that subcontracting goal for any purchases
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made from qualified nonprofit agencies for the blind or
other severely handicapped.
(c) For the purpose of this section, the phrase ‘‘quali-
fied nonprofit agency for the blind or other severely handi-
capped’’ means a nonprofit agency for the blind or other
severely handicapped that has been approved by the Com-
mittee for the Purchase from the Blind and Other Severely
Handicapped under the Javits-Wagner-O’Day Act (41
U.S.C. 46–48).
SEC. 8032. During the current fiscal year, net receipts
pursuant to collections from third party payers pursuant
to section 1095 of title 10, United States Code, shall be
made available to the local facility of the uniformed services
responsible for the collections and shall be over and above
the facility’s direct budget amount.
SEC. 8033. During the current fiscal year, the Depart-
ment of Defense is authorized to incur obligations of not
to exceed $350,000,000 for purposes specified in section
2350j(c) of title 10, United States Code, in anticipation of
receipt of contributions, only from the Government of Ku-
wait, under that section: Provided, That, upon receipt, such
contributions from the Government of Kuwait shall be cred-
ited to the appropriation or fund which incurred such obli-
gations.
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SEC. 8034. Of the funds made available in this Act,
not less than $22,700,000 shall be available for the Civil
Air Patrol, of which $19,000,000 shall be available for Op-
eration and Maintenance.
SEC. 8035. None of the funds in this or any other Act
shall be available for the preparation of studies on—
(a) the feasibility of removal and transportation
of unitary chemical weapons or agents from the eight
chemical storage sites within the continental United
States to Johnston Atoll: Provided, That this prohibi-
tion shall not apply to General Accounting Office
studies requested by a Member of Congress or a Con-
gressional Committee; and
(b) the potential future uses of the nine chemical
disposal facilities other than for the destruction of
stockpile chemical munitions and as limited by sec-
tion 1412(c)(2), Public Law 99–145: Provided, That
this prohibition does not apply to future use studies
for the CAMDS facility at Tooele, Utah.
SEC. 8036. None of the funds appropriated by this Act
shall be used for the support of any nonappropriated funds
activity of the Department of Defense that procures malt
beverages and wine with nonappropriated funds for resale
(including such alcoholic beverages sold by the drink) on
a military installation located in the United States unless
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such malt beverages and wine are procured within that
State, or in the case of the District of Columbia, within
the District of Columbia, in which the military installation
is located: Provided, That in a case in which the military
installation is located in more than one State, purchases
may be made in any State in which the installation is lo-
cated: Provided further, That such local procurement re-
quirements for malt beverages and wine shall apply to all
alcoholic beverages only for military installations in States
which are not contiguous with another State: Provided fur-
ther, That alcoholic beverages other than wine and malt bev-
erages, in contiguous States and the District of Columbia
shall be procured from the most competitive source, price
and other factors considered.
SEC. 8037. For the purposes of this Act, the term ‘‘con-
gressional defense committees’’ means the National Security
Committee of the House of Representatives, the Armed Serv-
ices Committee of the Senate, the subcommittee on Defense
of the Committee on Appropriations of the Senate, and the
subcommittee on National Security of the Committee on
Appropriations of the House of Representatives.
SEC. 8038. Notwithstanding any other provision of
law, during the current fiscal year, the Department of De-
fense may acquire the modification, depot maintenance and
repair of aircraft, vehicles and vessels as well as the produc-
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tion of components and other Defense-related articles,
through competition between Department of Defense depot
maintenance activities and private firms: Provided, That
the Senior Acquisition Executive of the military depart-
ment or defense agency concerned, with power of delegation,
shall certify that successful bids include comparable esti-
mates of all direct and indirect costs for both public and
private bids: Provided further, That Office of Management
and Budget Circular A–76 shall not apply to competitions
conducted under this section.
SEC. 8039. (a)(1) If the Secretary of Defense, after con-
sultation with the United States Trade Representative, de-
termines that a foreign country which is party to an agree-
ment described in paragraph (2) has violated the terms of
the agreement by discriminating against certain types of
products produced in the United States that are covered by
the agreement, the Secretary of Defense shall rescind the
Secretary’s blanket waiver of the Buy American Act with
respect to such types of products produced in that foreign
country.
(2) An agreement referred to in paragraph (1) is any
reciprocal defense procurement memorandum of under-
standing, between the United States and a foreign country
pursuant to which the Secretary of Defense has prospec-
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tively waived the Buy American Act for certain products
in that country.
(b) The Secretary of Defense shall submit to Congress
a report on the amount of Department of Defense purchases
from foreign entities in fiscal year 1997. Such report shall
separately indicate the dollar value of items for which the
Buy American Act was waived pursuant to any agreement
described in subsection (a)(2), the Trade Agreement Act of
1979 (19 U.S.C. 2501 et seq.), or any international agree-
ment to which the United States is a party.
(c) For purposes of this section, the term ‘‘Buy Amer-
ican Act’’ means title III of the Act entitled ‘‘An Act mak-
ing appropriations for the Treasury and Post Office De-
partments for the fiscal year ending June 30, 1934, and
for other purposes’’, approved March 3, 1933 (41 U.S.C.
10a et seq.).
SEC. 8040. Appropriations contained in this Act that
remain available at the end of the current fiscal year as
a result of energy cost savings realized by the Department
of Defense shall remain available for obligation for the next
fiscal year to the extent, and for the purposes, provided in
section 2865 of title 10, United States Code.
SEC. 8041. During the current fiscal year and here-
after, voluntary separation incentives payable under 10
U.S.C. 1175 may be paid in such amounts as are necessary
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from the assets of the Voluntary Separation Incentive Fund
established by section 1175(h)(1).
(INCLUDING TRANSFER OF FUNDS)
SEC. 8042. Amounts deposited during the current fis-
cal year to the special account established under 40 U.S.C.
485(h)(2) and to the special account established under 10
U.S.C. 2667(d)(1) are appropriated and shall be available
until transferred by the Secretary of Defense to current ap-
plicable appropriations or funds of the Department of De-
fense under the terms and conditions specified by 40 U.S.C.
485(h)(2) (A) and (B) and 10 U.S.C. 2667(d)(1)(B), to be
merged with and to be available for the same time period
and the same purposes as the appropriation to which trans-
ferred.
SEC. 8043. During the current fiscal year, appropria-
tions available to the Department of Defense may be used
to reimburse a member of a reserve component of the Armed
Forces who is not otherwise entitled to travel and transpor-
tation allowances and who occupies transient government
housing while performing active duty for training or inac-
tive duty training: Provided, That such members may be
provided lodging in kind if transient government quarters
are unavailable as if the member was entitled to such allow-
ances under subsection (a) of section 404 of title 37, United
States Code: Provided further, That if lodging in kind is
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provided, any authorized service charge or cost of such lodg-
ing may be paid directly from funds appropriated for oper-
ation and maintenance of the reserve component of the
member concerned.
SEC. 8044. Notwithstanding any other provision of
law, funds available for ‘‘Drug Interdiction and Counter-
Drug Activities, Defense’’ may be obligated for the Young
Marines program.
SEC. 8045. During the current fiscal year, amounts
contained in the Department of Defense Overseas Military
Facility Investment Recovery Account established by section
2921(c)(1) of the National Defense Authorization Act of
1991 (Public Law 101–510; 10 U.S.C. 2687 note) shall be
available until expended for the payments specified by sec-
tion 2921(c)(2) of that Act.
SEC. 8046. During the current fiscal year and here-
after, annual payments granted under the provisions of sec-
tion 4416 of the National Defense Authorization Act for Fis-
cal Year 1993 (Public Law 102–428; 106 Stat. 2714) shall
be made from appropriations in this Act which are avail-
able for the pay of reserve component personnel.
SEC. 8047. Of the funds appropriated or otherwise
made available by this Act, not more than $119,200,000
shall be available for payment of the operating costs of
NATO Headquarters: Provided, That the Secretary of De-
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fense may waive this section for Department of Defense sup-
port provided to NATO forces in and around the former
Yugoslavia.
SEC. 8048. During the current fiscal year, appropria-
tions which are available to the Department of Defense for
operation and maintenance may be used to purchase items
having an investment item unit cost of not more than
$100,000.
SEC. 8049. During the current fiscal year and here-
after, appropriations available for the pay and allowances
of active duty members of the Armed Forces shall be avail-
able to pay the retired pay which is payable pursuant to
section 4403 of Public Law 102–484 (10 U.S.C. 1293 note)
under the terms and conditions provided in section 4403.
SEC. 8050. (a) During the current fiscal year, none
of the appropriations or funds available to the Defense
Business Operations Fund shall be used for the purchase
of an investment item for the purpose of acquiring a new
inventory item for sale or anticipated sale during the cur-
rent fiscal year or a subsequent fiscal year to customers of
the Defense Business Operations Fund if such an item
would not have been chargeable to the Defense Business Op-
erations Fund during fiscal year 1994 and if the purchase
of such an investment item would be chargeable during the
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current fiscal year to appropriations made to the Depart-
ment of Defense for procurement.
(b) The fiscal year 1998 budget request for the Depart-
ment of Defense as well as all justification material and
other documentation supporting the fiscal year 1998 De-
partment of Defense budget shall be prepared and submitted
to the Congress on the basis that any equipment which was
classified as an end item and funded in a procurement ap-
propriation contained in this Act shall be budgeted for in
a proposed fiscal year 1998 procurement appropriation and
not in the supply management business area or any other
area or category of the Defense Business Operations Fund.
SEC. 8051. None of the funds provided in this Act shall
be available for use by a Military Department to modify
an aircraft, weapon, ship or other item of equipment, that
the Military Department concerned plans to retire or other-
wise dispose of within five years after completion of the
modification: Provided, That this prohibition shall not
apply to safety modifications: Provided further, That this
prohibition may be waived by the Secretary of a Military
Department if the Secretary determines it is in the best na-
tional security interest of the United States to provide such
waiver and so notifies the congressional defense committees
in writing.
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SEC. 8052. None of the funds appropriated by this Act
for programs of the Central Intelligence Agency shall re-
main available for obligation beyond the current fiscal year,
except for funds appropriated for the Reserve for Contin-
gencies, which shall remain available until September 30,
1998.
SEC. 8053. Notwithstanding any other provision of
law, funds made available in this Act for the Defense Intel-
ligence Agency may be used for the design, development, and
deployment of General Defense Intelligence Program intel-
ligence communications and intelligence information sys-
tems for the Services, the Unified and Specified Commands,
and the component commands.
SEC. 8054. Of the funds appropriated to the Depart-
ment of Defense under the heading ‘‘Operation and Mainte-
nance, Defense-Wide’’, not less than $8,000,000 shall be
made available only for the mitigation of environmental
impacts, including training and technical assistance to
tribes, related administrative support, the gathering of in-
formation, documenting of environmental damage, and de-
veloping a system for prioritization of mitigation, on In-
dian lands resulting from Department of Defense activities.
SEC. 8055. Amounts collected for the use of the facili-
ties of the National Science Center for Communications and
Electronics during the current fiscal year pursuant to sec-
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tion 1459(g) of the Department of Defense Authorization
Act, 1986 and deposited to the special account established
under subsection 1459(g)(2) of that Act are appropriated
and shall be available until expended for the operation and
maintenance of the Center as provided for in subsection
1459(g)(2).
SEC. 8056. None of the funds appropriated in this Act
may be used to fill the commander’s position at any mili-
tary medical facility with a health care professional unless
the prospective candidate can demonstrate professional ad-
ministrative skills.
SEC. 8057. None of the funds appropriated in this Act
may be expended by an entity of the Department of Defense
unless the entity, in expending the funds, complies with the
Buy American Act. For purposes of this subsection, the term
‘‘Buy American Act’’ means title III of the Act entitled ‘‘An
Act making appropriations for the Treasury and Post Of-
fice Departments for the fiscal year ending June 30, 1934,
and for other purposes’’, approved March 3, 1933 (41
U.S.C. 10a et seq.).
SEC. 8058. None of the funds appropriated by this Act
shall be available for a contract for studies, analyses, or
consulting services entered into without competition on the
basis of an unsolicited proposal unless the head of the activ-
ity responsible for the procurement determines—
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(1) as a result of thorough technical evaluation,
only one source is found fully qualified to perform the
proposed work, or
(2) the purpose of the contract is to explore an
unsolicited proposal which offers significant scientific
or technological promise, represents the product of
original thinking, and was submitted in confidence
by one source, or
(3) the purpose of the contract is to take advan-
tage of unique and significant industrial accomplish-
ment by a specific concern, or to insure that a new
product or idea of a specific concern is given finan-
cial support:
Provided, That this limitation shall not apply to contracts
in an amount of less than $25,000, contracts related to im-
provements of equipment that is in development or produc-
tion, or contracts as to which a civilian official of the De-
partment of Defense, who has been confirmed by the Senate,
determines that the award of such contract is in the interest
of the national defense.
SEC. 8059. Of the funds provided in title VI, under
the heading ‘‘Chemical Agents and Munitions Destruction,
Defense’’, $40,000,000 shall only be available for the initi-
ation of a pilot program to identify and demonstrate not
less than two alternatives to the baseline incineration proc-
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ess for the demilitarization of assembled chemical muni-
tions: Provided, That the Under Secretary of Defense for
Acquisition and Technology shall, not later than November
1, 1996, designate a program executive officer to carry out
the pilot program who is not, nor has been, in direct or
immediate control of the baseline reverse assembly inciner-
ation demilitarization program: Provided further, That the
Under Secretary of Defense for Acquisition and Technology
shall evaluate the effectiveness of each alternative chemical
munitions demilitarization technology identified and dem-
onstrated under the pilot program to demilitarize assembled
chemical munitions while meeting all applicable Federal
and State environmental and safety requirements: Provided
further, That the Under Secretary of Defense for Acquisition
and Technology shall transmit, by December 15 of each
year, a report to the congressional defense committees on
the activities carried out under the pilot program during
the preceding fiscal year in which the report is to be made:
Provided further, That no funds may be obligated for the
initiation of construction of a baseline incineration facility
at the Lexington Blue Grass Army Depot or the Pueblo
Depot activity until 180 days after the Secretary of Defense
has submitted to the congressional defense committees a re-
port detailing the effectiveness of each alternative chemical
munitions demilitarization technology identified and dem-
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onstrated under the pilot program and its ability to meet
the applicable safety and environmental requirements.
SEC. 8060. Notwithstanding any other provision of
law, the Secretary of Defense may, when he considers it in
the best interest of the United States, cancel any part of
an indebtedness, up to $2,500, that is or was owed to the
United States by a member or former member of a uni-
formed service if such indebtedness, as determined by the
Secretary, was incurred in connection with Operation
Desert Shield/Storm: Provided, That the amount of an in-
debtedness previously paid by a member or former member
and canceled under this section shall be refunded to the
member.
SEC. 8061. Notwithstanding any other provision of
law, the Department of Defense is authorized to enter into
interim leasing arrangements for the Naval Air Facility,
Adak, for commercial reutilization of Department of De-
fense infrastructure and facilities consistent with the 1990
Defense Base Closure and Realignment Commission Act of
1990 (Public Law 101–510, as amended).
(RESCISSIONS)
SEC. 8062. Of the funds provided in Department of
Defense Appropriations Acts, the following funds are hereby
rescinded from the following accounts in the specified
amounts:
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‘‘Missile Procurement, Air Force, 1995/1997’’,
$31,900,000;
‘‘Missile Procurement, Air Force, 1996/1998’’,
$20,000,000;
‘‘Research, Development, Test and Evaluation,
Air Force, 1996/1997’’, $75,000,000.
SEC. 8063. Of the funds appropriated in the Depart-
ment of Defense Appropriations Act, 1996 (Public Law
104–61), under the heading ‘‘Other Procurement, Army’’,
the Department of the Army shall grant $477,000 to the
Kansas Unified School District 207 for the purpose of inte-
grating schools at Fort Leavenworth into the existing fiber
optic network on post.
SEC. 8064. None of the funds available in this Act may
be used to reduce the authorized positions for military (ci-
vilian) technicians of the Army National Guard, the Air
National Guard, Army Reserve and Air Force Reserve for
the purpose of applying any administratively imposed ci-
vilian personnel ceiling, freeze, or reduction on military (ci-
vilian) technicians, unless such reductions are a direct re-
sult of a reduction in military force structure.
SEC. 8065. None of the funds appropriated or other-
wise made available in this Act may be obligated or ex-
pended for assistance to the Democratic People’s Republic
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of North Korea unless specifically appropriated for that
purpose.
SEC. 8066. During the current fiscal year, funds ap-
propriated in this Act are available to compensate members
of the National Guard for duty performed pursuant to a
plan submitted by a Governor of a State and approved by
the Secretary of Defense under section 112 of title 32, Unit-
ed States Code: Provided, That during the performance of
such duty, the members of the National Guard shall be
under State command and control: Provided further, That
such duty shall be treated as full-time National Guard duty
for purposes of sections 12602 (a)(2) and (b)(2) of title 10,
United States Code.
SEC. 8067. Funds appropriated in this Act for oper-
ation and maintenance of the Military Departments, Uni-
fied and Specified Commands and Defense Agencies shall
be available for reimbursement of pay, allowances and other
expenses which would otherwise be incurred against appro-
priations for the National Guard and Reserve when mem-
bers of the National Guard and Reserve provide intelligence
support to Unified Commands, Defense Agencies and Joint
Intelligence Activities, including the activities and pro-
grams included within the General Defense Intelligence
Program and the Consolidated Cryptologic Program: Pro-
vided, That nothing in this section authorizes deviation
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from established Reserve and National Guard personnel and
training procedures.
SEC. 8068. During the current fiscal year, none of the
funds appropriated in this Act may be used to reduce the
civilian medical and medical support personnel assigned to
military treatment facilities below the September 30, 1996
level.
SEC. 8069. All refunds or other amounts collected in
the administration of the Civilian Health and Medical Pro-
gram of the Uniformed Services (CHAMPUS) shall be cred-
ited to current year appropriations.
(INCLUDING TRANSFER OF FUNDS)
SEC. 8070. None of the funds appropriated in this Act
may be transferred to or obligated from the Pentagon Res-
ervation Maintenance Revolving Fund, unless the Secretary
of Defense certifies that the total cost for the planning, de-
sign, construction and installation of equipment for the ren-
ovation of the Pentagon Reservation will not exceed
$1,118,000,000.
SEC. 8071. (a) None of the funds available to the De-
partment of Defense for any fiscal year for drug interdic-
tion or counter-drug activities may be transferred to any
other department or agency of the United States except as
specifically provided in an appropriations law.
(b) None of the funds available to the Central Intel-
ligence Agency for any fiscal year for drug interdiction and
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counter-drug activities may be transferred to any other de-
partment or agency of the United States except as specifi-
cally provided in an appropriations law.
(TRANSFER OF FUNDS)
SEC. 8072. Appropriations available in this Act under
the heading ‘‘Operation and Maintenance, Defense-Wide’’
for increasing energy and water efficiency in Federal build-
ings may, during its period of availability, be transferred
to other appropriations or funds of the Department of De-
fense for projects related to increasing energy and water ef-
ficiency, to be merged with and to be available for the same
general purposes, and for the same time period, as the ap-
propriation or fund to which transferred.
SEC. 8073. Notwithstanding any other provision of
law, funds available to the Department of Defense shall be
made available to provide transportation of medical sup-
plies and equipment, on a nonreimbursable basis, to Amer-
ican Samoa: Provided, That notwithstanding any other
provision of law, funds available to the Department of De-
fense shall be made available to provide transportation of
medical supplies and equipment, on a nonreimbursable
basis, to the Indian Health Service when it is in conjunc-
tion with a civil-military project.
SEC. 8074. Notwithstanding any other provision of
law, the Naval shipyards of the United States shall be eligi-
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ble to participate in any manufacturing extension program
financed by funds appropriated in this or any other Act.
(TRANSFER OF FUNDS)
SEC. 8075. In addition to amounts appropriated or
otherwise made available by this Act, $300,000,000 is here-
by appropriated to the Department of Defense and shall be
available only for transfer to the United States Coast
Guard.
SEC. 8076. 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 con-
tiguous 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 provi-
sion 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 requirements of this section, on a case-by-
case basis, in the interest of national security.
SEC. 8077. Notwithstanding any other provision of
law, within the funds available in this Act, the Secretary
of the Air Force may enter into agreements to modify leases
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SEC. 8079. 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 U.S.
defense exports not otherwise provided for: Provided, That
the total contingent liability of the United States for guar-
antees 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 Secretary for each guaran-
tee, 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 Commit-
tees on Appropriations, National Security and Inter-
national Relations in the House of Representatives on the
implementation of this program: 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 adminis-
trative expenses of the Department of Defense that are at-
tributable to the loan guarantee program under subchapter
VI of Chapter 148 of title 10.
SEC. 8080. None of the funds available to the Depart-
ment of Defense shall be obligated or expended to make a
financial contribution to the United Nations for the cost
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of an United Nations peacekeeping activity (whether pursu-
ant to assessment or a voluntary contribution) or for pay-
ment of any United States arrearage to the United Nations.
SEC. 8081. None of the funds available to the Depart-
ment of Defense under this Act shall be obligated or ex-
pended to pay a contractor under a contract with the De-
partment of Defense for costs of any amount paid by the
contractor to an employee when—
(1) such costs are for a bonus or otherwise in ex-
cess of the normal salary paid by the contractor to the
employee; and
(2) such bonus is part of restructuring costs asso-
ciated with a business combination.
SEC. 8082. (a) None of the funds appropriated or oth-
erwise made available in this Act may be used to transport
or provide for the transportation of chemical munitions or
agents to the Johnston Atoll for the purpose of storing or
demilitarizing such munitions 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 sub-
section (a) during a period of war in which the United
States is a party.
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SEC. 8083. During the current fiscal year, appropria-
tions made in this Act under the heading ‘‘Operation and
Maintenance, Defense-Wide’’ may be transferred to appro-
priations 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 for
the purposes of expenses incurred in connection with a pilot
program to increase the use of Reserve personnel in support
of missions of the Armed Forces and for the use of such
personnel in connection with support and services for eligi-
ble organizations and activities outside the Department of
Defense pursuant to section 2012 of title 10, United States
Code.
SEC. 8084. None of the funds provided in this Act may
be obligated or expended for the sale of zinc in the National
Defense Stockpile if zinc commodity prices decline more
than five percent below the London Metals Exchange market
price reported on the date of enactment of this Act.
SEC. 8085. 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 ‘‘Shipbuild-
ing and Conversion, Navy’’ appropriations in any prior
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year, and the one percent limitation shall apply to the total
amount of the appropriation.
SEC. 8086. During the current fiscal year, and not-
withstanding 
U.S.C. 
1552(a), 
not 
more 
than
$107,000,000 appropriated under the heading ‘‘Aircraft
Procurement, Air Force’’ in Public Law 101–511 and not
more than $15,000,000 appropriated under the heading
‘‘Aircraft Procurement, Air Force’’ in Public Law 102–172
which were available and obligated for the B–2 Aircraft
Program shall remain available for expenditure and for ad-
justing obligations for such Program until September 30,
2002.
SEC. 8087. 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 ex-
pired or which has closed under the provisions of section
1552 of title 31, United States Code, and which has a nega-
tive unliquidated or unexpended balance, an obligation or
an adjustment of an obligation may be charged to any cur-
rent appropriation account for the same purpose as the ex-
pired 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 avail-
ability or closing of that account;
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(2) the obligation is not otherwise properly
chargeable to any current appropriation account of
the Department of Defense; and
(3) in the case of an expired account, the obliga-
tion is not chargeable to a current appropriation of
the Department of Defense under the provisions of sec-
tion 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 re-
corded against the expired account: Provided further,
That the total amount charged to a current appro-
priation under this section may not exceed an
amount equal to one percent of the total appropria-
tion for that account.
(TRANSFER OF FUNDS)
SEC. 8088. Upon enactment of this Act, the Secretary
of Defense shall make the following transfers of funds: Pro-
vided, That the amounts transferred shall be available for
the same purposes as the appropriations to which trans-
ferred, and for the same time period as the appropriation
from which transferred: Provided further, That the amounts
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shall be transferred between the following appropriations in
the amount specified:
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1985/1995’’:
For craft, outfitting, and post delivery,
$2,000,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1985/1995’’:
DDG–51 Destroyer program, $2,000,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1986/1996’’:
LHD–1 amphibious assault ship program,
$2,154,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1986/1996’’:
For craft, outfitting and post delivery,
$2,154,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1987/1996’’:
T–AO fleet oiler program, $1,095,000;
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Oceanographic ship program, $735,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1987/1996’’:
For craft, outfitting, and post delivery,
$1,830,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1989/2000’’:
T–AO fleet oiler program, $6,571,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1989/2000’’:
SSN–21 
attack 
submarine 
program,
$6,571,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1991/2001’’:
DDG–51 destroyer program, $12,687,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1991/2001’’:
LHD–1 amphibious assault ship program,
$9,387,000;
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MHC 
coastal 
mine 
hunter 
program,
$3,300,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1992/1996’’:
For escalation, $1,600,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1992/1996’’:
MHC 
coastal 
mine 
hunter 
program,
$1,600,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1993/1997’’:
DDG–51 destroyer program, $5,000,000;
LSD–41 cargo variant ship program,
$2,700,000;
For craft, outfitting, post delivery, and first
destination transportation, and inflation adjust-
ments, $1,577,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1993/1997’’:
AOE 
combat 
support 
ship 
program,
$9,277,000;
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From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1995/1999’’:
Carrier replacement program, $18,023,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1993/1997’’:
MHC 
coastal 
mine 
hunter 
program,
$6,700,000;
AOE 
combat 
support 
ship 
program,
$11,323,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1994/1998’’:
LHD–1 amphibious assault ship program,
$4,100,000;
Mine warfare command and control ship,
$1,000,000;
For craft, outfitting, post delivery, and first
destination transportation, $2,000,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1995/1999’’:
Carrier replacement program, $9,477,000;
From:
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Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1996/2000’’:
NSSN–1 (AP), $3,791,000;
DDG–51 destroyer program, $4,075,000;
CVN Refuelings, $5,212,000;
T–AGS–64 
multi-purpose 
oceanographic
survey ship, $375,000;
For craft, outfitting, post delivery, conver-
sions 
and 
first 
destination 
transportation,
$11,770,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1994/1998’’:
DDG–51 destroyer program, $41,800,000.
SEC. 8089. (a) The Secretary of Defense shall require
not later than June 30, 1997, each disbursement by the De-
partment of Defense in an amount in excess of $3,000,000
be matched to a particular obligation before the disburse-
ment is made.
(b) The Secretary shall ensure that a disbursement in
excess of the threshold amount applicable under section (a)
is not divided into multiple disbursements of less than that
amount for the purpose of avoiding the applicability of such
section to that disbursement.
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SEC. 8090. The Under Secretary of Defense (Comptrol-
ler) shall submit to the Congressional defense committees
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 1998 budget
request was reduced because Congress appropriated funds
above the President’s budget request for that specific activ-
ity for fiscal year 1997.
SEC. 8091. Notwithstanding any other provision of
law, of the funds appropriated under the heading ‘‘Aircraft
Procurement, Navy’’ in Public Law 104–61, $45,000,000
shall be made available only for procurement of T–39N air-
craft, simulators, and support equipment currently used for
training naval flight officers under an existing contract.
SEC. 8092. Notwithstanding 31 U.S.C. 1552(a), of the
funds provided in Department of Defense Appropriations
Acts, not more than the specified amounts of funds from
the following accounts shall remain available for the pay-
ment of satellite on-orbit incentive fees until the fees are
paid:
‘‘Missile Procurement, Air Force, 1990/1992’’,
$17,800,000;
‘‘Missile Procurement, Air Force, 1991/1993’’,
$19,330,000;
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‘‘Missile Procurement, Air Force, 1992/1994’’,
$23,570,000;
‘‘Missile Procurement, Air Force, 1993/1995’’,
$16,780,000;
‘‘Missile Procurement, Air Force, 1994/1996’’,
$16,780,000.
SEC. 8093. (a) Notwithstanding any other provision
of law, of the amounts available to the Department of De-
fense (department) during fiscal year 1997, not more than
$1,162,650,000 may be obligated for financing activities of
defense federally funded research and development centers
(FFRDCs): Provided, That of the specific amount referred
to 
previously 
in 
this 
subsection, 
not 
more 
than
$206,650,000 may be obligated for financing activities of
the defense studies and analysis FFRDCs: Provided further,
That the total amounts appropriated in titles II, III, and
IV of this Act are hereby reduced by $52,286,000 to reflect
the overall funding ceiling contained in this subsection.
(b) Within 60 days after enactment of this Act, the
Secretary of Defense shall submit to the Congressional de-
fense committees a report presenting the specific amounts—
in dollars and staff years of technical effort—to be allocated
by the department for each defense FFRDC during fiscal
year 1997.