H. R. 1119—249
to Congress a certification that only a single qualified entity applied
for transfer of the vessel.
(c) COVERED VESSELS.—This section applies to the following
vessels (each of which is a decommissioned aircraft carrier):
(1) Ex-U.S.S. HORNET (CV–12).
(2) Ex-U.S.S. MIDWAY (CV–41).
SEC. 1025. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUN-
TRIES.
(a) AUTHORITY.—The Secretary of the Navy is authorized to
transfer vessels to foreign 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 HUNLEY class sub-
marine tender HOLLAND (AS 32).
(2) To the Government of Chile, the KAISER class oiler
ISHERWOOD (T–AO 191).
(3) To the Government of Egypt:
(A) The following frigates of the KNOX class:
(i) The PAUL (FF 1080).
(ii) The MILLER (FF 1091).
(iii) The JESSE L. BROWN (FFT 1089).
(iv) The MOINESTER (FFT 1097).
(B) The following frigates of the OLIVER HAZARD
PERRY class:
(i) The FAHRION (FFG 22).
(ii) The LEWIS B. PULLER (FFG 23).
(4) To the Government of Israel, the NEWPORT class
tank landing ship PEORIA (LST 1183).
(5) To the Government of Malaysia, the NEWPORT class
tank landing ship BARBOUR COUNTY (LST 1195).
(6) To the Government of Mexico, the KNOX class frigate
ROARK (FF 1053).
(7) To the Taipei Economic and Cultural Representative
Office in the United States (the Taiwan instrumentality that
is designated pursuant to section 10(a) of the Taiwan Relations
Act), the following frigates of the KNOX class:
(A) The WHIPPLE (FF 1062).
(B) The DOWNES (FF 1070).
(8) To the Government of Thailand, the NEWPORT class
tank landing ship SCHENECTADY (LST 1185).
(b) COSTS OF TRANSFERS.—Any expense incurred by the United
States in connection with a transfer authorized by subsection (a)
shall be charged to the recipient.
(c) REPAIR
AND REFURBISHMENT
IN UNITED STATES SHIP-
YARDS.—To the maximum extent practicable, the Secretary of the
Navy shall require, as a condition 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.
(d) EXPIRATION OF AUTHORITY.—The authority to transfer a
vessel under subsection (a) shall expire at the end of the two-
year period beginning on the date of the enactment of this Act.
H. R. 1119—250
SEC. 1026. REPORTS RELATING TO EXPORT OF VESSELS THAT MAY
CONTAIN POLYCHLORINATED BIPHENYLS.
(a) REPORTS REQUIRED.—Not later than March 1, 1998, the
Secretary of the Navy (with respect to the Navy), the Administrator
of the Maritime Administration (with respect to the Maritime
Administration), and the Administrator of the Environmental
Protection Agency (with respect to the Environmental Protection
Agency) shall each submit to Congress a report on the implementa-
tion of the agreement between the Department of the Navy and
the Environmental Protection Agency that became effective August
6, 1997, and that is titled ‘‘Export of Naval Vessels that May
Contain Polychlorinated Biphenyls for Scrapping Outside the
United States’’.
(b) CONTENTS OF REPORTS.—The reports required by subsection
(a) shall address, at a minimum, the following:
(1) An assessment of the effects of the notification require-
ments regarding the export of vessels for scrapping, any impedi-
ments that those requirements may create for the export of
vessels, and any changes to the agreement that may be required
to address those impediments.
(2) An explanation of the process by which it is determined
which solid items containing polychlorinated biphenyls are
readily removable and must be removed before the export of
a vessel for scrapping, what types of polychlorinated biphenyls
have been determined to be readily removable pursuant to
this process, any impediments that such determinations may
create for the export of vessels, and any changes to the agree-
ment that may be required to address those impediments or
to ensure protection of human health and the environment.
(c) AMENDMENTS RELATING TO DISPOSAL OF OBSOLETE VESSELS
FROM THE NATIONAL DEFENSE RESERVE FLEET.—Section 6 of the
National Maritime Heritage Act of 1994 (Public Law 103–451; 108
Stat. 4776; 16 U.S.C. 5405) is amended—
(1) in subsections (a)(1) and (b)(2)—
(A) by inserting ‘‘or 510(i)’’ after ‘‘508’’; and
(B) by inserting ‘‘or 1160(i)’’ after ‘‘1158’’;
(2) in subsection (b)(2), by striking out ‘‘first 6’’ and insert-
ing in lieu thereof ‘‘first 8’’; and
(3) in subsection (c)(1)(A), by striking out ‘‘1999’’ and insert-
ing in lieu thereof ‘‘2001’’.
SEC. 1027. CONVERSION OF DEFENSE CAPABILITY PRESERVATION
AUTHORITY 
TO 
NAVY 
SHIPBUILDING 
CAPABILITY
PRESERVATION AUTHORITY.
(a) IN GENERAL.—(1) Chapter 633 of title 10, United States
Code, is amended by adding at the end the following new section:
‘‘§ 7315. Preservation of Navy shipbuilding capability
‘‘(a) SHIPBUILDING CAPABILITY PRESERVATION AGREEMENTS.—
The Secretary of the Navy may enter into an agreement, to be
known as a ‘shipbuilding capability preservation agreement’, with
a shipbuilder under which the cost reimbursement rules described
in subsection (b) shall be applied to the shipbuilder under a Navy
contract for the construction of a ship. Such an agreement may
be entered into in any case in which the Secretary determines
H. R. 1119—251
that the application of such cost reimbursement rules would facili-
tate the achievement of the policy objectives set forth in section
2501(b) of this title.
‘‘(b) COST REIMBURSEMENT RULES.—The cost reimbursement
rules applicable under an agreement entered into under subsection
(a) are as follows:
‘‘(1) The Secretary of the Navy shall, in determining the
reimbursement due a shipbuilder for its indirect costs of
performing a contract for the construction of a ship for the
Navy, allow the shipbuilder to allocate indirect costs to its
private sector work only to the extent of the shipbuilder’s
allocable indirect private sector costs, subject to paragraph
(3).
‘‘(2) For purposes of paragraph (1), the allocable indirect
private sector costs of a shipbuilder are those costs of the
shipbuilder that are equal to the sum of the following:
‘‘(A) The incremental indirect costs attributable to such
work.
‘‘(B) The amount by which the revenue attributable
to such private sector work exceeds the sum of—
‘‘(i) the direct costs attributable to such private
sector work; and
‘‘(ii) the incremental indirect costs attributable to
such private sector work.
‘‘(3) The total amount of allocable indirect private sector
costs for a contract covered by the agreement may not exceed
the amount of indirect costs that a shipbuilder would have
allocated to its private sector work during the period covered
by the agreement in accordance with the shipbuilder’s estab-
lished accounting practices.
‘‘(c) AUTHORITY TO MODIFY COST REIMBURSEMENT RULES.—
The cost reimbursement rules set forth in subsection (b) may be
modified by the Secretary of the Navy for a particular agreement
if the Secretary determines that modifications are appropriate to
the particular situation to facilitate achievement of the policy set
forth in section 2501(b) of this title.
‘‘(d) APPLICABILITY.—(1) An agreement entered into with a ship-
builder under subsection (a) shall apply to each of the following
Navy contracts with the shipbuilder:
‘‘(A) A contract that is in effect on the date on which
the agreement is entered into.
‘‘(B) A contract that is awarded during the term of the
agreement.
‘‘(2) In a shipbuilding capability preservation agreement
applicable to a shipbuilder, the Secretary may agree to apply the
cost reimbursement rules set forth in subsection (b) to allocations
of indirect costs to private sector work performed by the shipbuilder
only with respect to costs that the shipbuilder incurred on or
after the date of the enactment of the National Defense Authoriza-
tion Act for Fiscal Year 1998 under a contract between the ship-
builder and a private sector customer of the shipbuilder that became
effective on or after January 26, 1996.’’.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:
‘‘7315. Preservation of Navy shipbuilding capability.’’.
H. R. 1119—252
(b) IMPLEMENTATION.—Not later than 30 days after the date
of the enactment of this Act, the Secretary of the Navy shall
establish application procedures and procedures for expeditious
consideration of shipbuilding capability preservation agreements
as authorized by section 7315 of title 10, United States Code,
as added by subsection (a).
(c) REPORT.—Not later than February 15, 1998, the Secretary
of the Navy shall submit to Congress a report on applications
for shipbuilding capability preservation agreements under section
7315 of title 10, United States Code, as added by subsection (a).
The report shall specify the number of the applications received,
the number of the applications approved, and a discussion of the
reasons for disapproval of any application disapproved.
(d) REPEAL
OF SUPERSEDED PROVISION.—Section 808 of the
National Defense Authorization Act for Fiscal Year 1996 (Public
Law 104–106; 110 Stat. 393; 10 U.S.C. 2501 note) is repealed.
Subtitle C—Counter-Drug Activities
SEC. 1031. USE OF NATIONAL GUARD FOR STATE DRUG INTERDICTION
AND COUNTER-DRUG ACTIVITIES.
(a) RELATIONSHIP
TO TRAINING
AND READINESS.—Subsection
(b) of section 112 of title 32, United States Code, is amended—
(1) by inserting ‘‘(1)’’ before ‘‘Under regulations’’; and
(2) by adding at the end the following new paragraphs:
‘‘(2) To ensure that the use of units and personnel of the
National Guard of a State pursuant to a State drug interdiction
and counter-drug activities plan is not detrimental to the training
and readiness of such units and personnel, the requirements of
section 2012(d) of title 10 shall apply in determining the drug
interdiction and counter-drug activities that units and personnel
of the National Guard of a State may perform.
‘‘(3) Section 508 of this title, regarding the provision of assist-
ance to certain specified youth and charitable organizations, shall
apply in any case in which a unit or member of the National
Guard of a State is proposed to be used pursuant to a State
drug interdiction and counter-drug activities plan to provide to
an organization specified in subsection (d) of such section any
of the services described in subsection (b) of such section or services
regarding counter-drug education.’’.
(b) ENGINEER-TYPE ACTIVITIES.—Subsection (c) of such section
is amended—
(1) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively; and
(2) by inserting after paragraph (3) the following new para-
graph:
‘‘(4) certify that any engineer-type activities (as defined
by the Secretary of Defense) under the plan will be performed
only by units and members of the National Guard;’’.
(c) ANNUAL REPORT.—Such section is further amended—
(1) by redesignating subsections (g) and (h) as subsections
(h) and (i), respectively; and
(2) by inserting after subsection (f) the following new sub-
section:
‘‘(g) ANNUAL REPORT.—The Secretary of Defense shall submit
to Congress an annual report regarding assistance provided and
H. R. 1119—253
activities carried out under this section during the preceding fiscal
year. The report shall include the following:
‘‘(1) The number of members of the National Guard
excluded under subsection (e) from the computation of end
strengths.
‘‘(2) A description of the drug interdiction and counter-
drug activities conducted under State drug interdiction and
counter-drug activities plans referred to in subsection (c) with
funds provided under this section.
‘‘(3) An accounting of the amount of funds provided to
each State.
‘‘(4) A description of the effect on military training and
readiness of using units and personnel of the National Guard
to perform activities under the State drug interdiction and
counter-drug activities plans.’’.
(d) CONFORMING AMENDMENTS.—Subsection (e) of such section
is amended—
(1) by striking out ‘‘(1)’’ before ‘‘Members’’; and
(2) by striking out paragraph (2).
SEC. 1032. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR
COUNTER-DRUG ACTIVITIES OF MEXICO.
(a) EXTENSION OF AUTHORITY; CONSULTATION OF SECRETARY
OF STATE.—Subsection (a) of section 1031 of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110
Stat. 2637), is amended—
(1) by striking out ‘‘fiscal year 1997’’ and inserting in lieu
thereof ‘‘fiscal years 1997 and 1998’’; and
(2) by inserting after the first sentence the following new
sentence: ‘‘In providing support to the Government of Mexico
under this section, the Secretary of Defense shall consult with
the Secretary of State.’’.
(b) EXTENSION OF AVAILABILITY OF FUNDS.—Subsection (d) of
such section is amended—
(1) by striking out ‘‘not more than’’ and inserting in lieu
thereof ‘‘an amount not to exceed’’; and
(2) by adding at the end the following new sentences:
‘‘Funds made available for fiscal year 1997 under this sub-
section and unobligated by September 30, 1997, may be obli-
gated during fiscal year 1998. No funds are authorized to
be appropriated for fiscal year 1998 for the provision of support
under this section.’’.
SEC. 1033. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR
COUNTER-DRUG ACTIVITIES OF PERU AND COLOMBIA.
(a) AUTHORITY TO PROVIDE SUPPORT.—Subject to subsection
(f), during fiscal years 1998 through 2002, the Secretary of Defense
may provide either or both of the foreign governments named
in subsection (b) with the support described in subsection (c) for
the counter-drug activities of that government. In providing support
to a government under this section, the Secretary of Defense shall
consult with the Secretary of State. The support provided under
the authority of this section shall be in addition to support provided
to the governments under any other provision of law.
(b) GOVERNMENTS ELIGIBLE TO RECEIVE SUPPORT.—The foreign
governments eligible to receive counter-drug support under this
section are as follows:
(1) The Government of Peru.
H. R. 1119—254
(2) The Government of Colombia.
(c) TYPES
OF SUPPORT.—The authority under subsection (a)
is limited to the provision of the following types of support to
a government named in subsection (b):
(1) The types of support specified in paragraphs (1), (2),
and (3) of section 1031(b) of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2637).
(2) The transfer of riverine patrol boats.
(3) The maintenance and repair of equipment of the govern-
ment that is used for counter-drug activities.
(d) APPLICABILITY OF OTHER SUPPORT AUTHORITIES.—Except
as otherwise provided in this section, the provisions of section
1004 of the National Defense Authorization Act for Fiscal Year
1991 (Public Law 101–510; 10 U.S.C. 374 note) shall apply to
the provision of support under this section.
(e) FISCAL YEAR 1998 FUNDING; LIMITATION ON OBLIGATIONS.—
(1) Of the amount authorized to be appropriated under section
301(20) for drug interdiction and counter-drug activities, an amount
not to exceed $9,000,000 shall be available for the provision of
support under this section.
(2) Amounts made available to carry out this section shall
remain available until expended, except that the total amount obli-
gated and expended under this section may not exceed $20,000,000
during any of the fiscal years 1999 through 2002.
(f) CONDITION ON PROVISION OF SUPPORT.—(1) The Secretary
of Defense may not obligate or expend funds during a fiscal year
to provide support under this section to a government named in
subsection (b) until the end of the 15-day period beginning on
the date on which the Secretary submits to the congressional
committees the written certification described in subsection (g) for
that fiscal year.
(2) In the case of the first fiscal year in which support is
to be provided under this section to a government named in sub-
section (b), the obligation or expenditure of funds under this section
to provide support to that government shall also be subject to
the condition that—
(A) the Secretary submit to the congressional committees
the riverine counter-drug plan described in subsection (h); and
(B) a period of 60 days expires after the date on which
the report is submitted.
(3) In the case of subsequent fiscal years in which support
is to be provided under this section to a government named in
subsection (b), the obligation or expenditure of funds under this
section to provide support to that government shall also be subject
to the condition that the Secretary submit to the congressional
committees any revision of the counter-drug plan described in sub-
section (h) applicable to that government.
(4) For purposes of this subsection, the term ‘‘congressional
committees’’ means the following:
(A) The Committee on Armed Services and the Committee
on Foreign Relations of the Senate.
(B) The Committee on National Security and the Commit-
tee on International Relations of the House of Representatives.
(g) 
REQUIRED
CERTIFICATION.—The 
written 
certification
required by subsection (f)(1) for a fiscal year is a certification
of the following with respect to each government to receive support
under this section:
H. R. 1119—255
(1) That the provision of the support to the government
will not adversely affect the military preparedness of the United
States Armed Forces.
(2) That the equipment and materiel provided as support
will be used only by officials and employees of the government
who have undergone background investigations by that govern-
ment and have been approved by that government to perform
counter-drug activities on the basis of the background investiga-
tions.
(3) That the government has certified to the Secretary
of Defense that—
(A) the equipment and materiel provided as support
will be used only by the officials and employees referred
to in paragraph (2);
(B) none of the equipment or materiel will be trans-
ferred (by sale, gift, or otherwise) to any person or entity
not authorized by the United States to receive the equip-
ment or materiel; and
(C) the equipment and materiel will be used only for
the purposes intended by the United States Government.
(4) That the government has implemented, to the satisfac-
tion of the Secretary of Defense, a system that will provide
an accounting and inventory of the equipment and materiel
provided as support.
(5) That the departments, agencies, and instrumentalities
of the government will grant United States Government person-
nel access to any of the equipment or materiel provided as
support, or to any of the records relating to such equipment
or materiel, under terms and conditions similar to the terms
and conditions imposed with respect to such access under sec-
tion 505(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C.
2314(a)(3)).
(6) That the government will provide security with respect
to the equipment and materiel provided as support that is
substantially the same degree of security that the United States
Government would provide with respect to such equipment
and materiel.
(7) That the government will permit continuous observation
and review by United States Government personnel of the
use of the equipment and materiel provided as support under
terms and conditions similar to the terms and conditions
imposed with respect to such observation and review under
section 505(a)(3) of the Foreign Assistance Act of 1961 (22
U.S.C. 2314(a)(3)).
(h) RIVERINE COUNTER-DRUG PLAN.—The Secretary of Defense,
in consultation with the Secretary of State, shall prepare for fiscal
year 1998 (and revise as necessary for subsequent fiscal years)
a riverine counter-drug plan involving the governments named in
subsection (b) to which support will be provided under this section.
The plan for a fiscal year shall include the following with respect
to each government to receive support under this section:
(1) A detailed security assessment, including a discussion
of the threat posed by illicit drug traffickers in the foreign
country.
(2) An evaluation of previous and ongoing riverine counter-
drug operations by the government.
H. R. 1119—256
(3) An assessment of the monitoring of past and current
assistance provided by the United States under this section
to the government to ensure the appropriate use of such assist-
ance.
(4) A description of the centralized management and
coordination among Federal agencies involved in the develop-
ment and implementation of the plan.
(5) A description of the roles and missions and coordination
among agencies of the government involved in the development
and implementation of the plan.
(6) A description of the resources to be contributed by
the Department of Defense and the Department of State for
the fiscal year or years covered by the plan and the manner
in which such resources will be utilized under the plan.
(7) For the first fiscal year in which support is to be
provided under this section, a schedule for establishing a
riverine counter-drug program that can be sustained by the
government within five years, and for subsequent fiscal years,
a description of the progress made in establishing and carrying
out the program.
(8) A reporting system to measure the effectiveness of
the riverine counter-drug program.
(9) A detailed discussion of how the riverine counter-drug
program supports the national drug control strategy of the
United States.
SEC. 1034. ANNUAL REPORT ON DEVELOPMENT AND DEPLOYMENT
OF NARCOTICS DETECTION TECHNOLOGIES.
(a) REPORT REQUIREMENT.—Not later than December 1st of
each year, the Director of the Office of National Drug Control
Policy shall submit to Congress and the President a report on
the development and deployment of narcotics detection technologies
by Federal agencies. Each such report shall be prepared in consulta-
tion with the Secretary of Defense, the Secretary of State, the
Secretary of Transportation, and the Secretary of the Treasury.
(b) MATTERS TO BE INCLUDED.—Each report under subsection
(a) shall include—
(1) a description of each project implemented by a Federal
agency relating to the development or deployment of narcotics
detection technology;
(2) the agency responsible for each project described in
paragraph (1);
(3) the amount of funds obligated or expended to carry
out each project described in paragraph (1) during the fiscal
year in which the report is submitted or during any fiscal
year preceding the fiscal year in which the report is submitted;
(4) the amount of funds estimated to be obligated or
expended for each project described in paragraph (1) during
any fiscal year after the fiscal year in which the report is
submitted to Congress; and
(5) a detailed timeline for implementation of each project
described in paragraph (1).
H. R. 1119—257
Subtitle D—Miscellaneous Report
Requirements and Repeals
SEC. 1041. REPEAL OF MISCELLANEOUS REPORTING REQUIREMENTS.
(a) REQUIREMENT
FOR NOTICE
OF CONVERSION
OF CERTAIN
HEATING SYSTEMS AT INSTALLATIONS IN EUROPE.—Section 2690(b)
of title 10, United States Code, is amended by striking out ‘‘unless
the Secretary—’’ and all that follows and inserting in lieu
thereof the following: ‘‘unless the Secretary determines that the
conversion—
‘‘(1) is required by the government of the country in which
the facility is located; or
‘‘(2) is cost-effective over the life cycle of the facility.’’.
(b) REPORT
ON
AVAILABILITY
OF
SUITABLE
ALTERNATIVE
HOUSING.—Section 2823 of title 10, United States Code, is
amended—
(1) by striking out subsection (b); and
(2) by redesignating subsections (c) and (d) as subsections
(b) and (c), respectively.
(c) REPORT ON STRETCHOUT OF MAJOR DEFENSE ACQUISITION
PROGRAMS.—Section 117 of the National Defense Authorization Act,
Fiscal Year 1989 (Public Law 100–456; 102 Stat. 1933; 10 U.S.C.
2431 note), is repealed.
(d) ELIMINATION
OF REQUIREMENT
FOR QUARTERLY REPORT
CONCERNING TRAVEL FUNDING
FOR CHEMICAL DEMILITARIZATION
CITIZENS’ ADVISORY COMMISSIONERS.—(1) Section 1412(g) of the
National Defense Authorization Act for Fiscal Year 1986 (50 U.S.C.
1521(g)) is amended—
(A) by striking out paragraph (3);
(B) by striking out the last sentence of paragraph (4);
and
(C) by redesignating paragraph (4) (as so amended) as
paragraph (3).
(2) Section 153(b) of the National Defense Authorization Act
for Fiscal Year 1996 (50 U.S.C. 1521 note) is amended—
(A) by striking out ‘‘QUARTERLY’’ in the heading; and
(B) by striking out paragraphs (4) and (5).
SEC. 1042. STUDY OF TRANSFER OF MODULAR AIRBORNE FIRE FIGHT-
ING SYSTEM.
Not later than six months after the date of the enactment
of this Act, the Secretary of Defense, in consultation with the
Secretary of Agriculture, shall submit to Congress a report evaluat-
ing the feasibility of transferring jurisdiction over units of the
Modular Airborne Fire Fighting System from the Department of
Agriculture to the Department of Defense.
SEC. 1043. OVERSEAS INFRASTRUCTURE REQUIREMENTS.
(a) FINDINGS.—Congress makes the following findings:
(1) United States military forces have been withdrawn
from the Philippines.
(2) United States military forces are to be withdrawn from
Panama by 2000.
(3) There continues to be local opposition to the continued
presence of United States military forces in Okinawa.
H. R. 1119—258
(4) The Quadrennial Defense Review lists ‘‘the loss of U.S.
access to critical facilities and lines of communication in key
regions’’ as one of the so-called ‘‘wild card’’ scenarios covered
in the review.
(5) The National Defense Panel states that ‘‘U.S. forces’
long-term access to forward bases, to include air bases, ports,
and logistics facilities, cannot be assumed’’.
(b) SENSE OF CONGRESS.—It is the sense of Congress that—
(1) the President should develop alternatives to the current
arrangement for forward basing of the Armed Forces outside
the United States, including alternatives to the existing infra-
structure for forward basing of forces and alternatives to the
existing international agreements that provide for basing of
United States forces in foreign countries; and
(2) because the Pacific Rim continues to emerge as a region
of significant economic and military importance to the United
States, a continued presence of the Armed Forces in that region
is vital to the capability of the United States to timely protect
its interests in the region.
(c) REPORT REQUIRED.—Not later than March 31, 1998, the
Secretary of Defense 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 the overseas infrastruc-
ture requirements of the Armed Forces.
(d) CONTENT.—The report shall contain the following:
(1) The quantity and types of forces that the United States
must station in each region of the world in order to support
the current national military strategy of the United States.
(2) The quantity and types of forces that the United States
will need to station in each region of the world in order to
meet the expected or potential future threats to the national
security interests of the United States.
(3) The requirements for access to, and use of, air space
and ground maneuver areas in each such region for training
for the quantity and types of forces identified for the region
pursuant to paragraphs (1) and (2).
(4) A list of the international agreements, currently in
force, that the United States has entered into with foreign
countries regarding the basing of United States forces in those
countries and the dates on which the agreements expire.
(5) A discussion of any anticipated political opposition or
other opposition to the renewal of any of those international
agreements.
(6) A discussion of future overseas basing requirements
for United States forces, taking into account expected changes
in national security strategy, national security environment,
and weapons systems.
(7) The expected costs of maintaining the overseas infra-
structure for foreign based forces of the United States, including
the costs of constructing any new facilities that will be nec-
essary overseas to meet emerging requirements relating to
the national security interests of the United States.
(e) FORM OF REPORT.—The report may be submitted in a classi-
fied or unclassified form.
H. R. 1119—259
SEC. 1044. ADDITIONAL MATTERS FOR ANNUAL REPORT ON ACTIVI-
TIES OF THE GENERAL ACCOUNTING OFFICE.
Section 719(b) of title 31, United States Code, is amended
by adding at the end the following:
‘‘(3) The report under subsection (a) shall also include a state-
ment of the staff hours and estimated cost of work performed
on audits, evaluations, investigations, and related work during each
of the three fiscal years preceding the fiscal year in which the
report is submitted, stated separately for each division of the Gen-
eral Accounting Office by category as follows:
‘‘(A) A category for work requested by the chairman of
a committee of Congress, the chairman of a subcommittee of
such a committee, or any other Member of Congress.
‘‘(B) A category for work required by law to be performed
by the Comptroller General.
‘‘(C) A category for work initiated by the Comptroller Gen-
eral in the performance of the Comptroller General’s general
responsibilities.’’.
SEC. 1045. EYE SAFETY AT SMALL ARMS FIRING RANGES.
(a) ACTIONS REQUIRED.—The Secretary of the Defense shall—
(1) conduct a study of eye safety at small arms firing
ranges of the Armed Forces; and
(2) develop for the use of the Armed Forces a protocol
for reporting eye injuries incurred in small arms firing activities
at the ranges.
(b) AGENCY TASKING.—The Secretary may delegate authority
to carry out the responsibilities set forth in subsection (a) to the
United States Army Center for Health Promotion and Preventive
Medicine or any other element of the Department of Defense that
the Secretary considers well qualified to carry out those responsibil-
ities.
(c) CONTENT
OF STUDY.—The study under subsection (a)(1)
shall include the following:
(1) An evaluation of the existing policies, procedures, and
practices of the Armed Forces regarding medical surveillance
of eye injuries resulting from weapons fire at the small arms
ranges.
(2) An examination of the existing policies, procedures,
and practices of the Armed Forces regarding reporting on vision
safety issues resulting from weapons fire at the small arms
ranges.
(3) Determination of rates of eye injuries, and trends in
eye injuries, resulting from weapons fire at the small arms
ranges.
(4) An evaluation of the costs and benefits of a requirement
for use of eye protection devices by all personnel firing small
arms at the ranges.
(d) REPORT.—The Secretary shall submit a report on the activi-
ties required under this section to the Committees on Armed Serv-
ices and on Veterans’ Affairs of the Senate and the Committees
on National Security and on Veterans’ Affairs of the House of
Representatives. The report shall include—
(1) the findings resulting from the study under paragraph
(1) of subsection (a); and
(2) the protocol developed under paragraph (2) of such
subsection.
H. R. 1119—260
(e) SCHEDULE.—(1) The Secretary shall ensure that the study
is commenced not later than January 1, 1998, and is completed
not later than six months after the date on which it is commenced.
(2) The Secretary shall submit the report required under sub-
section (d) not later than 30 days after the completion of the
study.
SEC. 1046. REPORTS ON DEPARTMENT OF DEFENSE PROCEDURES FOR
INVESTIGATING MILITARY AVIATION ACCIDENTS AND
FOR NOTIFYING AND ASSISTING FAMILIES OF VICTIMS.
(a) REPORT
ON AVIATION ACCIDENT INVESTIGATION PROCE-
DURES.—Not later than February 1, 1998, the Secretary of Defense
shall submit to Congress a report on the advisability of establishing
a process for investigating Department of Defense aviation accidents
that combines accident investigation with safety investigation into
a single, public investigation process, similar to the accident inves-
tigation process of the National Transportation Safety Board. The
report shall include a discussion of the advantages and disadvan-
tages of adopting such an investigation process.
(b) REPORT ON FAMILY ASSISTANCE.—Not later than April 2,
1998, the Secretary of Defense shall submit to Congress a report
on assistance provided by the Department of Defense to families
of casualties among military and civilian personnel of the depart-
ment in the case of aviation accidents involving such personnel.
The report shall include—
(1) a discussion of the adequacy and effectiveness of the
family notification procedures of the Department of Defense,
including the procedures of the military departments; and
(2) a description of the assistance provided to members
of the families of such personnel.
(c) REPORT BY DEPARTMENT OF DEFENSE INSPECTOR GENERAL.—
Not later than December 1, 1997, the Inspector General of the
Department of Defense shall review the procedures of the Federal
Aviation Administration and the National Transportation Safety
Board for providing information and assistance to members of fami-
lies of casualties of nonmilitary aviation accidents and shall submit
to Congress a report on the review. The report shall include a
discussion of the following:
(1) Designation of an experienced non-profit organization
to provide assistance in meeting the needs of families of
accident casualties.
(2) An assessment of the system and procedures for
providing families with information on accidents and accident
investigations.
(3) Protection of members of families from unwanted solici-
tations relating to the accident.
(4) A recommendation regarding whether the procedures
reviewed (including the matters discussed under paragraphs
(1), (2), and (3)) or similar procedures should be adopted by
the Department of Defense for use by the Department in provid-
ing information and assistance to members of families of casual-
ties of military aviation accidents and, if the recommendation
is not to adopt such procedures, a detailed justification for
the recommendation.
(d) UNCLASSIFIED FORM OF REPORTS.—The reports under this
section shall be submitted in unclassified form.
H. R. 1119—261
Subtitle E—Matters Relating to Terrorism
SEC. 1051. OVERSIGHT OF COUNTERTERRORISM AND ANTITERRORISM
ACTIVITIES; REPORT.
(a) OVERSIGHT
OF COUNTERTERRORISM
AND ANTITERRORISM
ACTIVITIES.—Not later than 120 days after the date of the enact-
ment of this Act, the Director of the Office of Management and
Budget shall—
(1) establish a reporting system for executive agencies with
respect to the budget and expenditure of funds by such agencies
for the purpose of carrying out counterterrorism and
antiterrorism programs and activities; and
(2) using such reporting system, collect information on—
(A) the budget and expenditure of funds by executive
agencies during the current fiscal year for purposes of
carrying out counterterrorism and antiterrorism programs
and activities; and
(B) the specific programs and activities for which such
funds were expended.
(b) REPORT.—Not later that March 1 of each year, the President
shall submit to Congress a report in classified and unclassified
form (using the information described in subsection (a)(2)) describ-
ing, for each executive agency and for the executive branch as
a whole, the following:
(1) 
The 
amounts 
proposed 
to 
be 
expended 
for
counterterrorism and antiterrorism programs and activities for
the fiscal year beginning in the calendar year in which the
report is submitted.
(2) 
The 
amounts 
proposed 
to 
be 
expended 
for
counterterrorism and antiterrorism programs and activities for
the fiscal year in which the report is submitted and the amounts
that have already been expended for such programs and activi-
ties for that fiscal year.
(3) The specific counterterrorism and antiterrorism pro-
grams and activities being implemented, any priorities with
respect to such programs and activities, and whether there
has been any duplication of efforts in implementing such pro-
grams and activities.
SEC. 1052. PROVISION OF ADEQUATE TROOP PROTECTION EQUIPMENT
FOR ARMED FORCES PERSONNEL ENGAGED IN PEACE
OPERATIONS; REPORT ON ANTITERRORISM ACTIVITIES
AND PROTECTION OF PERSONNEL.
(a) PROTECTION OF PERSONNEL.—The Secretary of Defense shall
take appropriate actions to ensure that units of the Armed Forces
engaged in a peace operation are provided adequate troop protection
equipment for that operation.
(b) SPECIFIC ACTIONS.—In taking actions under subsection (a),
the Secretary shall—
(1) identify the additional troop protection equipment, if
any, required to equip a division (or the equivalent of a division)
with adequate troop protection equipment for peace operations;
and
(2) establish procedures to facilitate the exchange or trans-
fer of troop protection equipment among units of the Armed
Forces.
H. R. 1119—262
(c) DESIGNATION OF RESPONSIBLE OFFICIAL.—The Secretary of
Defense shall designate an official within the Department of Defense
to be responsible for—
(1) ensuring the appropriate allocation of troop protection
equipment among the units of the Armed Forces engaged in
peace operations; and
(2) monitoring the availability, status or condition, and
location of such equipment.
(d) TROOP PROTECTION EQUIPMENT DEFINED.—In this section,
the term ‘‘troop protection equipment’’ means the equipment
required by units of the Armed Forces to defend against any hostile
threat that is likely during a peace operation, including an attack
by a hostile crowd, small arms fire, mines, and a terrorist bombing
attack.
(e) REPORT ON ANTITERRORISM ACTIVITIES OF THE DEPARTMENT
OF DEFENSE AND PROTECTION OF PERSONNEL.—Not later than 120
days after the date of the enactment of this Act, the Secretary
of Defense shall submit to Congress a report, in classified and
unclassified form, on antiterrorism activities of the Department
of Defense and the actions taken by the Secretary under subsections
(a), (b), and (c). The report shall include the following:
(1) A description of the programs designed to carry out
antiterrorism activities of the Department of Defense, any defi-
ciencies in those programs, and any actions taken by the Sec-
retary to improve implementation of such programs.
(2) An assessment of the current policies and practices
of the Department of Defense with respect to the protection
of members of the Armed Forces overseas against terrorist
attack, including any modifications to such policies or practices
that are proposed or implemented as a result of the assessment.
(3) An assessment of the procedures of the Department
of Defense for determining accountability, if any, in the com-
mand structure of the Armed Forces in instances in which
a terrorist attack results in the loss of life at an overseas
military installation or facility.
(4) A detailed description of the roles of the Office of
the Secretary of Defense, the Chairman of the Joint Chiefs
of Staff, the Secretaries of the military departments, and the
combatant commanders in providing guidance and support with
respect to the protection of members of the Armed Forces
deployed overseas against terrorist attack (both before and
after the November 1995 bombing in Riyadh, Saudi Arabia)
and how these roles have changed since the June 25, 1996,
terrorist bombing at Khobar Towers in Dhahran, Saudi Arabia.
(5) A description of the actions taken by the Secretary
of Defense under subsections (a), (b), and (c) to provide adequate
troop protection equipment for units of the Armed Forces
engaged in a peace operation.
H. R. 1119—263
Subtitle F—Matters Relating to Defense
Property
SEC. 1061. LEASE OF NON-EXCESS PERSONAL PROPERTY OF MILITARY
DEPARTMENTS.
(a) RECEIPT OF FAIR MARKET VALUE.—Subsection (b)(4) of sec-
tion 2667 of title 10, United States Code, is amended by striking
out ‘‘, in the case of the lease of real property,’’.
(b) 
COMPETITIVE
SELECTION.—Such 
section 
is 
further
amended—
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f) the following new sub-
section:
‘‘(g)(1) If a proposed lease under subsection (a) involves only
personal property, the lease term exceeds one year, and the fair
market value of the lease interest exceeds $100,000, as determined
by the Secretary concerned, the Secretary shall use competitive
procedures to select the lessee.
‘‘(2) Not later than 45 days before entering into a lease described
in paragraph (1), the Secretary concerned shall submit to Congress
written notice describing the terms of the proposed lease and the
competitive procedures used to select the lessee.’’.
(c) CLERICAL AMENDMENTS.—(1) The heading of such section
is amended to read as follows:
‘‘§ 2667. Leases: non-excess property of military depart-
ments’’.
(2) The table of sections at the beginning of chapter 159 of
title 10, United States Code, is amended by striking out the item
relating to section 2667 and inserting in lieu thereof the following
new item:
‘‘2667. Leases: non-excess property of military departments.’’.
(d) CONFORMING AMENDMENT.—Section 2490a(f)(2) of title 10,
United States Code, is amended by striking out ‘‘section 2667(g)’’
and inserting in lieu thereof ‘‘section 2667(h)’’.
SEC. 1062. LEASE OF NON-EXCESS PROPERTY OF DEFENSE AGENCIES.
(a) LEASE AUTHORITY.—Chapter 159 of title 10, United States
Code, is amended by inserting after section 2667 the following
new section:
‘‘§ 2667a. Leases: non-excess property of Defense agencies
‘‘(a) LEASE AUTHORITY.—Whenever the Secretary of Defense
considers it advantageous to the United States, the Secretary may
lease to such lessee and upon such terms as the Secretary considers
will promote the national defense or to be in the public interest,
personal property that is—
‘‘(1) under the control of a Defense agency;
‘‘(2) not for the time needed for public use; and
‘‘(3) not excess property, as defined by section 3 of the
Federal Property and Administrative Services Act of 1949 (40
U.S.C. 472).
‘‘(b) LIMITATION, TERMS, AND CONDITIONS.—A lease under sub-
section (a)—
H. R. 1119—264
‘‘(1) may not be for more than five years unless the Sec-
retary of Defense determines that a lease for a longer period
will promote the national defense or be in the public interest;
‘‘(2) may give the lessee the first right to buy the property
if the lease is revoked to allow the United States to sell the
property under any other provision of law;
‘‘(3) shall permit the Secretary to revoke the lease at any
time, unless the Secretary determines that the omission of
such a provision will promote the national defense or be in
the public interest;
‘‘(4) shall provide for the payment (in cash or in kind)
by the lessee of consideration in an amount that is not less
than the fair market value of the lease interest, as determined
by the Secretary; and
‘‘(5) may provide, notwithstanding any other provision of
law, for the improvement, maintenance, protection, repair, res-
toration, or replacement by the lessee, of the property leased
as the payment of part or all of the consideration for the
lease.
‘‘(c) COMPETITIVE SELECTION.—(1) If the term of a proposed
lease under subsection (a) exceeds one year and the fair market
value of the lease interest exceeds $100,000, as determined by
the Secretary of Defense, the Secretary shall use competitive proce-
dures to select the lessee.
‘‘(2) Not later than 45 days before entering into a lease described
in paragraph (1), the Secretary shall submit to Congress a written
notice describing the terms of the proposed lease and the competi-
tive procedures used to select the lessee.
‘‘(d) DISPOSITION
OF MONEY RENT.—Money rentals received
pursuant to a lease entered into by the Secretary of Defense under
subsection (a) shall be deposited in a special account in the Treasury
established for the Defense agency whose property is subject to
the lease. Amounts in a Defense agency’s special account shall
be available, to the extent provided in appropriations Acts, solely
for the maintenance, repair, restoration, or replacement of the
leased property.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating
to section 2667 the following new item:
‘‘2667a. Leases: non-excess property of Defense agencies.’’.
SEC. 1063. DONATION OF EXCESS CHAPEL PROPERTY TO CHURCHES
DAMAGED OR DESTROYED BY ARSON OR OTHER ACTS
OF TERRORISM.
(a) AUTHORITY TO DONATE.—Chapter 153 of title 10, United
States Code, is amended by adding at the end the following new
section:
‘‘§ 2580. Donation of excess chapel property
‘‘(a) AUTHORITY TO DONATE.—The Secretary of a military
department may donate personal property specified in subsection
(b) to an organization described in section 501(c)(3) of the Internal
Revenue Code of 1986 that is a religious organization in order
to assist the organization in restoring or replacing property of
the organization that has been damaged or destroyed as a result
of an act of arson or terrorism, as determined pursuant to proce-
dures prescribed by the Secretary of Defense.
H. R. 1119—265
‘‘(b) PROPERTY COVERED.—(1) The property authorized to be
donated under subsection (a) is furniture and other personal prop-
erty that—
‘‘(A) is in, or was formerly in, a chapel under the jurisdiction
of the Secretary of a military department and closed or being
closed; and
‘‘(B) is determined by the Secretary to be excess to the
requirements of the armed forces.
‘‘(2) No real property may be donated under this section.
‘‘(c) DONEES NOT TO BE CHARGED.—No charge may be imposed
by the Secretary of a military department on a donee of property
under this section in connection with the donation. However, the
donee shall agree to defray any expense for shipping or other
transportation of property donated under this section from the
location of the property when donated to any other location.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following
new item:
‘‘2580. Donation of excess chapel property.’’.
SEC. 1064. AUTHORITY OF THE SECRETARY OF DEFENSE CONCERNING
DISPOSAL OF ASSETS UNDER COOPERATIVE AGREE-
MENTS ON AIR DEFENSE IN CENTRAL EUROPE.
(a) GENERAL AUTHORITIES.—The Secretary of Defense, pursuant
to an amendment or amendments to the European air defense
agreements, may dispose of any defense articles owned by the
United States and acquired to carry out such agreements by provid-
ing such articles to the Federal Republic of Germany. In carrying
out such disposal, the Secretary—
(1) may provide without monetary charge to the Federal
Republic of Germany articles specified in the agreements; and
(2) may accept from the Federal Republic of Germany (in
exchange for the articles provided under paragraph (1)) articles,
services, or any other consideration, as determined appropriate
by the Secretary.
(b) DEFINITION OF EUROPEAN AIR DEFENSE AGREEMENTS.—For
the purposes of this section, the term ‘‘European air defense agree-
ments’’ means—
(1) the agreement entitled ‘‘Agreement between the Sec-
retary of Defense of the United States of America and the
Minister of Defense of the Federal Republic of Germany on
Cooperative Measures for Enhancing Air Defense for Central
Europe’’, signed on December 6, 1983; and
(2) the agreement entitled ‘‘Agreement between the Sec-
retary of Defense of the United States of America and the
Minister of Defense of the Federal Republic of Germany in
implementation of the 6 December 1983 Agreement on Coopera-
tive Measures for Enhancing Air Defense for Central Europe’’,
signed on July 12, 1984.
SEC. 1065. SALE OF EXCESS, OBSOLETE, OR UNSERVICEABLE AMMUNI-
TION AND AMMUNITION COMPONENTS.
(a) AUTHORITY.—(1) Chapter 443 of title 10, United States
Code, is amended by adding at the end the following new section:
H. R. 1119—266
‘‘§ 4687. Sale of excess, obsolete, or unserviceable ammunition
and ammunition components
‘‘(a) AUTHORITY TO SELL OUTSIDE DOD.—The Secretary of the
Army may sell to an eligible purchaser described in subsection
(c) ammunition or ammunition components that are excess, obsolete,
or unserviceable and have not been demilitarized if—
‘‘(1) the purchaser enters into an agreement, in advance,
with the Secretary—
‘‘(A) to demilitarize the ammunition or components;
and
‘‘(B) to reclaim, recycle, or reuse the component parts
or materials; or
‘‘(2) the Secretary, or an official of the Department of
the Army designated by the Secretary, approves the use of
the ammunition or components proposed by the purchaser as
being consistent with the public interest.
‘‘(b) METHOD OF SALE.—The Secretary shall use competitive
procedures to sell ammunition and ammunition components under
this section, except that the Secretary may use procedures other
than competitive procedures in any case in which the Secretary
determines that there is only one potential buyer of the items
being offered for sale.
‘‘(c) ELIGIBLE PURCHASERS.—To be eligible to purchase excess,
obsolete, or unserviceable ammunition or ammunition components
under this section, the purchaser shall be a licensed manufacturer
(as defined in section 921(10) of title 18) that, as determined by
the Secretary, has a capability to modify, reclaim, transport, and
either store or sell the ammunition or ammunition components
sought to be purchased.
‘‘(d) HOLD HARMLESS AGREEMENT.—The Secretary shall require
a purchaser of ammunition or ammunition components under this
section to agree to hold harmless and indemnify the United States
from any claim for damages for death, injury, or other loss resulting
from a use of the ammunition or ammunition components, except
in a case of willful misconduct or gross negligence of a representa-
tive of the United States.
‘‘(e) VERIFICATION OF DEMILITARIZATION.—The Secretary shall
establish procedures for ensuring that a purchaser of ammunition
or ammunition components under this section demilitarizes the
ammunition or ammunition components in accordance with any
agreement to do so under subsection (a)(1). The procedures shall
include onsite verification of demilitarization activities.
‘‘(f) CONSIDERATION.—The Secretary may accept ammunition,
ammunition components, or ammunition demilitarization services
as consideration for ammunition or ammunition components sold
under this section. The fair market value of any such consideration
shall be equal to or exceed the fair market value or, if higher,
the sale price of the ammunition or ammunition components sold.
‘‘(g) RELATIONSHIP TO ARMS EXPORT CONTROL ACT.—Nothing
in this section shall be construed to affect the applicability of
section 38 of the Arms Export Control Act (22 U.S.C. 2778) to
sales of ammunition or ammunition components on the United
States Munitions List.
‘‘(h) DEFINITIONS.—In this section:
‘‘(1) The term ‘excess, obsolete, or unserviceable’, with
respect to ammunition or ammunition components, means that
H. R. 1119—267
the ammunition or ammunition components are no longer nec-
essary for war reserves or for support of training of the Army
or production of ammunition or ammunition components.
‘‘(2) The term ‘demilitarize’, with respect to ammunition
or ammunition components—
‘‘(A) means to destroy the military offensive or defen-
sive advantages inherent in the ammunition or ammunition
components; and
‘‘(B) includes any mutilation, scrapping, melting, burn-
ing, or alteration that prevents the use of the ammunition
or ammunition components for the military purposes for
which the ammunition or ammunition components was
designed or for a lethal purpose.’’.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:
‘‘4687. Sale of excess, obsolete, or unserviceable ammunition and ammunition com-
ponents.’’.
(b) REVIEW OF INITIAL SALES.—(1) For each of the first three
fiscal years during which the Secretary of the Army sells ammuni-
tion or ammunition components under the authority of section
4687 of title 10, United States Code, as added by subsection (a),
the Director of the Army Audit Agency shall conduct a review
of sales under such section to ensure that—
(A) purchasers that enter into an agreement under sub-
section (a)(1) of such section to demilitarize the purchased
ammunition or ammunition components fully comply with the
agreement; and
(B) purchasers that are authorized under subsection (a)(2)
of such section to use the purchased ammunition or ammunition
components actually use the ammunition or ammunition compo-
nents in the manner proposed.
(2) Not later than 180 days after the end of each fiscal year
in which the review is conducted, the Secretary of the Army shall
submit to Congress a report containing the results of the review
for the fiscal year covered by the report.
SEC. 1066. TRANSFER OF B–17 AIRCRAFT TO MUSEUM.
(a) AUTHORITY.—The Secretary of the Air Force may convey,
without consideration to the Planes of Fame Museum, Chino,
California (in this section referred to as the ‘‘museum’’), all right,
title, and interest of the United States in and to the B–17 aircraft
known as the ‘‘Picadilly Lilly’’, an aircraft that has been in the
possession of the museum since 1959. Such a conveyance shall
be made by means of a conditional deed of gift.
(b) CONDITION OF AIRCRAFT.—The Secretary may not convey
ownership of the aircraft under subsection (a) until the Secretary
determines that the museum has altered the aircraft in such man-
ner as the Secretary determines necessary to ensure that the air-
craft does not have any capability for use as a platform for launching
or releasing munitions or any other combat capability that it was
designed to have. The Secretary is not required to repair or alter
the condition of the aircraft before conveying ownership of the
aircraft.
(c) REVERTER UPON TRANSFER OF OWNERSHIP OR POSSESSION.—
The Secretary shall include in the instrument of conveyance of
the aircraft—