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SEC. 727. REPEAL OF SUPERSEDED AUTHORITIES.
(a) REPEALS.—The following provisions of law are
repealed:
(1) Section 911 of the Military Construction
Authorization Act, 1982 (42 U.S.C. 248c).
(2) Section 1252 of the Department of Defense
Authorization Act, 1984 (42 U.S.C. 248d).
(3) Section 718(c) of the National Defense Au-
thorization Act for Fiscal year 1991 (Public Law
101–510; 42 U.S.C. 248c note).
(4) Section 726 of the National Defense Au-
thorization Act for Fiscal Year 1996 (Public Law
104–106; 42 U.S.C. 248c note).
(b) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 1997.
Subtitle D—Other Changes to Ex-
isting Laws Regarding Health
Care Management
SEC. 731. AUTHORITY TO WAIVE CHAMPUS EXCLUSION RE-
GARDING 
NONMEDICALLY 
NECESSARY
TREATMENT IN CONNECTION WITH CERTAIN
CLINICAL TRIALS.
(a) WAIVER AUTHORITY.—Paragraph (13) of section
1079(a) of title 10, United States Code, is amended—
(1) by striking out ‘‘any service’’ and inserting
in lieu thereof ‘‘Any service’’;
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(2) by striking out the semicolon at the end and
inserting in lieu thereof a period; and
(3) by adding at the end the following: ‘‘Pursu-
ant to an agreement with the Secretary of Health
and Human Services and under such regulations as
the Secretary of Defense may prescribe, the Sec-
retary of Defense may waive the operation of this
paragraph in connection with clinical trials spon-
sored or approved by the National Institutes of
Health if the Secretary of Defense determines that
such a waiver will promote access by covered bene-
ficiaries to promising new treatments and contribute
to the development of such treatments.’’.
(b) CLERICAL AMENDMENTS.—Such section is fur-
ther amended—
(1) in the matter preceding paragraph (1), by
striking out ‘‘except that—’’ and inserting in lieu
thereof ‘‘except as follows:’’;
(2) by capitalizing the first letter of the first
word of each of paragraphs (1) through (17);
(3) by striking out the semicolon at the end of
each of paragraphs (1) through (15) and inserting
in lieu thereof a period; and
(4) in paragraph (16), by striking out ‘‘; and’’
and inserting in lieu thereof a period.
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SEC. 732. AUTHORITY TO WAIVE OR REDUCE CHAMPUS DE-
DUCTIBLE 
AMOUNTS 
FOR 
RESERVISTS
CALLED TO ACTIVE DUTY IN SUPPORT OF
CONTINGENCY OPERATIONS.
Section 1079(b) of title 10, United States Code, is
amended—
(1) by redesignating paragraphs (1) through
(5) as subparagraphs (A) through (E), respectively;
(2) by inserting ‘‘(1)’’ after ‘‘(b)’’;
(3) in subparagraph (B), as so redesignated, by
striking out ‘‘clause (3)’’ and inserting in lieu there-
of ‘‘subparagraph (C)’’;
(4) in subparagraph (D), as so redesignated—
(A) by striking out ‘‘this clause’’ and in-
serting in lieu thereof ‘‘this subparagraph’’; and
(B) by striking out ‘‘clauses (2) and (3)’’
and inserting in lieu thereof ‘‘subparagraphs
(B) and (C)’’; and
(5) by adding at the end the following new
paragraph:
‘‘(2) The Secretary of Defense may waive or reduce
the deductible amounts required by subparagraphs (B)
and (C) of paragraph (1) in the case of the dependents
of a member of a reserve component of the uniformed
services who serves on active duty in support of a contin-
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gency operation under a call or order to active duty of
less than one year.’’.
SEC. 733. EXCEPTION TO MAXIMUM ALLOWABLE PAYMENTS
TO INDIVIDUAL HEALTH-CARE PROVIDERS
UNDER CHAMPUS.
Section 1079(h) of title 10, United States Code, is
amended—
(1) by redesignating paragraph (5) as para-
graph (6); and
(2) by inserting after paragraph (4) the follow-
ing new paragraph:
‘‘(5) Except in an area in which the Secretary of De-
fense has entered into an at-risk contract for the provision
of health care services, the Secretary may authorize the
commander of a facility of the uniformed services, the lead
agent (if other than the commander), and the health care
contractor to modify the payment limitations under para-
graph (1) for certain health care providers when necessary
to ensure both the availability of certain services for cov-
ered beneficiaries and costs lower than standard
CHAMPUS for the required services.’’.
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SEC. 734. CODIFICATION OF ANNUAL AUTHORITY TO CRED-
IT CHAMPUS REFUNDS TO CURRENT YEAR
APPROPRIATION.
(a) CODIFICATION.—(1) Chapter 55 of title 10, Unit-
ed States Code, is amended by inserting after section 1079
the following new section:
‘‘§ 1079a. CHAMPUS: treatment of refunds and other
amounts collected
‘‘All refunds and other amounts collected in the ad-
ministration of the Civilian Health and Medical Program
of the Uniformed Services shall be credited to the appro-
priation supporting the program in the year in which the
amount is collected.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1079 the following new item:
‘‘1079a. CHAMPUS: treatment of refunds and other amounts collected.’’.
(b) CONFORMING REPEAL.—Section 8094 of the De-
partment of Defense Appropriations Act, 1996 (Public
Law 104–61; 109 Stat. 671), is repealed.
SEC. 735. EXCEPTIONS TO REQUIREMENTS REGARDING OB-
TAINING 
NONAVAILABILITY-OF-HEALTH-
CARE STATEMENTS.
(a) REFERENCE TO INPATIENT MEDICAL CARE.—(1)
Section 1080(a) of title 10, United States Code, is amend-
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ed by inserting ‘‘inpatient’’ before ‘‘medical care’’ in the
first sentence.
(2) Section 1086(e) of such title is amended in the
first sentence by striking out ‘‘benefits’’ and inserting in
lieu thereof ‘‘inpatient medical care’’.
(b) WAIVERS
AND
EXCEPTIONS
TO
REQUIRE-
MENTS.—(1) Section 1080 of such title is amended by
adding at the end the following new subsection:
‘‘(c) WAIVERS
AND
EXCEPTIONS
TO
REQUIRE-
MENTS.—(1) A covered beneficiary enrolled in a managed
care plan offered pursuant to any contract or agreement
under this chapter for the provision of health care services
shall not be required to obtain a nonavailability-of-health-
care statement as a condition for the receipt of health
care.
‘‘(2) The Secretary of Defense may waive the require-
ment to obtain nonavailability-of-health-care statements
following an evaluation of the effectiveness of such state-
ments in optimizing the use of facilities of the uniformed
services.’’.
(2) Section 1086(e) of such title is amended in the
last sentence by striking out ‘‘section 1080(b)’’ and insert-
ing in lieu thereof ‘‘subsections (b) and (c) of section
1080’’.
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(c) CONFORMING AMENDMENT.—Section 1080(b) of
such title is amended—
(1) by striking out ‘‘NONAVAILABILITY
OF
HEALTH CARE STATEMENTS’’ and inserting in lieu
thereof 
‘‘NONAVAILABILITY-OF-HEALTH-CARE
STATEMENTS; and
(2) by striking out ‘‘nonavailability of health
care statement’’ and inserting in lieu thereof ‘‘non-
availability of health care statement’’.
SEC. 736. EXPANSION OF COLLECTION AUTHORITIES FROM
THIRD-PARTY PAYERS.
(a) EXPANSION
OF COLLECTION AUTHORITIES.—
Section 1095 of title 10, United States Code, is amend-
ed—
(1) in subsection (g)(1), by inserting ‘‘or
through’’ after ‘‘provided at’’;
(2) in subsection (h)(1), by inserting before the
period at the end of the first sentence the following:
‘‘and a workers’ compensation program or plan’’;
and
(3) in subsection (h)(2)—
(A) by striking ‘‘organization and’’ and in-
serting in lieu thereof ‘‘organization,’’; and
(B) by inserting before the period at the
end the following: ‘‘, and personal injury protec-
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tion or medical payments benefits in cases in-
volving personal injuries resulting from oper-
ation of a motor vehicle’’.
(b) INCLUSION OF THIRD PARTY PAYER IN COLLEC-
TION EFFORTS.—Section 1079(j)(1) of such title is
amended by inserting after ‘‘or health plan’’ the following:
‘‘(including any plan offered by a third-party payer (as
defined in section 1095(h)(1) of this title))’’.
Subtitle E—Other Matters
SEC. 741. ALTERNATIVES TO ACTIVE DUTY SERVICE OBLI-
GATION UNDER ARMED FORCES HEALTH
PROFESSIONS SCHOLARSHIP AND FINANCIAL
ASSISTANCE 
PROGRAM 
AND 
UNIFORMED
SERVICES 
UNIVERSITY 
OF 
THE 
HEALTH
SCIENCES.
(a) ARMED FORCES HEALTH PROFESSIONS SCHOL-
ARSHIP AND FINANCIAL ASSISTANCE PROGRAM.—Sub-
section (e) of section 2123 of title 10, United States Code,
is amended to read as follows:
‘‘(e)(1) A member of the program who is relieved of
the member’s active duty obligation under this subchapter
before the completion of that active duty obligation may
be given, with or without the consent of the member, any
of the following alternative obligations, as determined by
the Secretary of the military department concerned:
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‘‘(A) A service obligation in a component of the
Selected Reserve for a period not less than twice as
long as the member’s remaining active duty service
obligation.
‘‘(B) A service obligation as a civilian employee
employed as a health care professional in a facility
of the uniformed services for a period of time equal
to the member’s remaining active duty service obli-
gation.
‘‘(C) With the concurrence of the Secretary of
Health and Human Services, transfer of the active
duty service obligation to an obligation equal in time
in the National Health Service Corps under section
338C of the Public Health Service Act (42 U.S.C.
254m) and subject to all requirements and proce-
dures applicable to obligated members of the Na-
tional Health Service Corps.
‘‘(D) Repayment to the Secretary of Defense of
a percentage of the total cost incurred by the Sec-
retary under this subchapter on behalf of the mem-
ber equal to the percentage of the member’s total ac-
tive duty service obligation being relieved, plus inter-
est.
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‘‘(2) The Secretary of Defense shall prescribe regula-
tions describing the manner in which an alternative obliga-
tion may be given under paragraph (1).’’.
(b) UNIFORMED SERVICES UNIVERSITY
OF
THE
HEALTH SCIENCES.—Section 2114 of title 10, United
States Code is amended by adding at the end the following
new subsection:
‘‘(h) A graduate of the University who is relieved of
the graduate’s active-duty service obligation under sub-
section (b) before the completion of that active-duty serv-
ice obligation may be given, with or without the consent
of the graduate, an alternative obligation comparable to
the alternative obligations authorized in subparagraphs
(A) and (B) of section 2123(e)(1) of this title for members
of the Armed Forces Health Professions Scholarship and
Financial Assistance program.’’.
(c) APPLICATION OF AMENDMENTS.—The amend-
ments made by this section shall apply with respect to in-
dividuals who first become members of the Armed Forces
Health Professions Scholarship and Financial Assistance
program or students of the Uniformed Services University
of the Health Sciences on or after October 1, 1996.
(d) TRANSITION PROVISION.—(1) In the case of any
member of the Armed Forces Health Professions Scholar-
ship and Financial Assistance program who, as of October
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1, 1996, is serving an active duty obligation under the pro-
gram or is incurring an active duty obligation as a partici-
pant in the program, and who is subsequently relieved of
the active duty obligation before the completion of the obli-
gation, the alternative obligations authorized by the
amendment made by subsection (a) may be used by the
Secretary of the military department concerned with the
agreement of the member.
(2) In the case of any person who, as of October 1,
1996, is serving an active-duty service obligation as a
graduate of the Uniformed Services University of the
Health Sciences or is incurring an active-duty service obli-
gation as a student of the University, and who is subse-
quently relieved of the active-duty service obligation before
the completion of the obligation, the alternative obligations
authorized by the amendment made by subsection (b) may
be implemented by the Secretary of Defense with the
agreement of the person.
SEC. 742. EXCEPTION TO STRENGTH LIMITATIONS FOR
PUBLIC 
HEALTH 
SERVICE 
OFFICERS 
AS-
SIGNED TO DEPARTMENT OF DEFENSE.
Section 206 of the Public Health Service Act (42
U.S.C. 207) is amended by adding at the end the following
new subsection:
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‘‘(f) In computing the maximum number of commis-
sioned officers of the Public Health Service authorized by
law or administrative determination to serve on active
duty, there may be excluded from such computation offi-
cers who are assigned to duty in the Department of De-
fense.’’.
SEC. 743. CONTINUED OPERATION OF UNIFORMED SERV-
ICES UNIVERSITY OF THE HEALTH SCIENCES.
(a) CLOSURE PROHIBITED.—In light of the impor-
tant role of the Uniformed Services University of the
Health Sciences in providing trained health care providers
for the uniformed services, Congress reaffirms the require-
ment contained in section 922 of the National Defense Au-
thorization Act for Fiscal Year 1995 (Public Law 103–
337; 108 Stat 2829) that the Uniformed Services Univer-
sity of the Health Sciences may not be closed.
(b) BUDGETARY COMMITMENT TO CONTINUATION.—
It is the sense of Congress that the Secretary of Defense
should budget for the operation of the Uniformed Services
University of the Health Sciences during fiscal year 1998
at a level at least equal to the level of operations conducted
at the University during fiscal year 1995.
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SEC. 744. SENSE OF CONGRESS REGARDING TAX TREAT-
MENT OF ARMED FORCES HEALTH PROFES-
SIONS SCHOLARSHIP AND FINANCIAL ASSIST-
ANCE PROGRAM.
It is the sense of Congress that the Secretary of De-
fense should work with the Secretary of the Treasury to
interpret section 117 of the Internal Revenue Code of
1986 so that the limitation on the amount of a qualified
scholarship or qualified tuition reduction excluded from
gross income does not apply to any portion of a scholar-
ship or financial assistance provided by the Secretary of
Defense to a person enrolled in the Armed Forces Health
Professions Scholarship and Financial Assistance program
under subchapter I of chapter 105 of title 10, United
States Code.
SEC. 745. REPORT REGARDING SPECIALIZED TREATMENT
FACILITY PROGRAM.
Not later than April 1, 1997, the Secretary of De-
fense shall submit to Congress a report evaluating the im-
pact on the military health care system of limiting the
service area of a facility designated as part of the special-
ized treatment facility program under section 1105 of title
10, United States Code, to not more than 100 miles from
the facility.
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TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
Subtitle A—Acquisition
Management
SEC. 801. AUTHORITY TO WAIVE CERTAIN REQUIREMENTS
FOR 
DEFENSE 
ACQUISITION 
PILOT 
PRO-
GRAMS.
(a) AUTHORITY.—The Secretary of Defense may
waive sections 2399, 2403, 2432, and 2433 of title 10,
United States Code, in accordance with this section for
any defense acquisition program designated by the Sec-
retary of Defense for participation in the defense acquisi-
tion pilot program authorized by section 809 of the Na-
tional Defense Authorization Act for Fiscal Year 1991
(Public Law 101–510; 10 U.S.C. 2340 note).
(b) OPERATIONAL TEST
AND EVALUATION.—The
Secretary of Defense may waive the requirements for oper-
ational test and evaluation for such a defense acquisition
program as set forth in section 2399 of title 10, United
States Code, if the Secretary—
(1) determines (without delegation) that such
test would be unreasonably expensive or impractical;
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(2) develops a suitable alternate operational test
program for the system concerned;
(3) describes in the test and evaluation master
plan, as approved by the Director of Operational
Test and Evaluation, the method of evaluation that
will be used to evaluate whether the system will be
effective and suitable for combat; and
(4) submits to the congressional defense com-
mittees a report containing the determination that
was made under paragraph (1), a justification for
that determination, and a copy of the plan required
by paragraph (3).
(c) CONTRACTOR GUARANTEES FOR MAJOR WEAP-
ONS SYSTEMS.—The Secretary of Defense may waive the
requirements of section 2403 of title 10, United States
Code, for such a defense acquisition program if an alter-
native guarantee is used that ensures high quality weap-
ons systems.
(d) SELECTED ACQUISITION REPORTS.—The Sec-
retary of Defense may waive the requirements of sections
2432 and 2433 of title 10, United States Code, for such
a defense acquisition program if the Secretary provides a
single annual report to Congress at the end of each fiscal
year that describes the status of the program in relation
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to the baseline description for the program established
under section 2435 of such title.
SEC. 802. EXCLUSION FROM CERTAIN POST-EDUCATION
DUTY ASSIGNMENTS FOR MEMBERS OF AC-
QUISITION CORPS.
Section 663(d) of title 10, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(3) The Secretary of Defense may exclude from the
requirements of paragraph (1) or (2) an officer who is
a member of an Acquisition Corps established pursuant
to 1731 of this title if the officer—
‘‘(A) has graduated from a senior level course
of instruction designed for personnel serving in criti-
cal acquisition positions; and
‘‘(B) is assigned, upon graduation, to a critical
acquisition position designated pursuant to section
1733 of this title.’’.
SEC. 803. EXTENSION OF AUTHORITY TO CARRY OUT CER-
TAIN PROTOTYPE PROJECTS.
(a) AUTHORITY.—Section 845(a) of the National De-
fense Authorization Act for Fiscal Year 1994 (Public Law
103–160; 107 Stat. 1721) is amended by inserting after
‘‘Agency’’ the following: ‘‘, the Secretary of a military de-
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partment, or any other official designated by the Secretary
of Defense’’.
(b) PERIOD OF AUTHORITY.—Section 845(c) of such
Act is amended by striking out ‘‘3 years after the date
of the enactment of this Act’’ and inserting in lieu thereof
‘‘on September 30, 1999’’.
(c) CONFORMING AND TECHNICAL AMENDMENTS.—
Section 845 of such Act is further amended—
(1) in subsection (b)—
(A) in paragraph (1), by striking out
‘‘(c)(2) and (c)(3) of such section 2371, as re-
designated by section 827(b)(1)(B),’’ and in-
serting in lieu thereof ‘‘(e)(2) and (e)(3) of such
section 2371’’; and
(B) in paragraph (2), by inserting after
‘‘Director’’ the following: ‘‘, Secretary, or other
official’’; and
(2) in subsection (c), by striking out ‘‘of the Di-
rector’’.
SEC. 804. INCREASE IN THRESHOLD AMOUNTS FOR MAJOR
SYSTEMS.
Section 2302(5) of title 10, United States Code, is
amended—
(1) by striking out ‘‘$75,000,000 (based on fis-
cal year 1980 constant dollars)’’ and inserting in
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lieu thereof ‘‘$115,000,000 (based on fiscal year
1990 dollars)’’;
(2) by striking out ‘‘$300,000,000 (based on
fiscal year 1980 constant dollars)’’ and inserting in
lieu thereof ‘‘$540,000,000 (based on fiscal year
1990 constant dollars)’’; and
(3) by adding at the end the following: ‘‘The
Secretary of Defense may adjust the amounts and
the base fiscal year provided in clause (A) on the
basis of Department of Defense escalation rates. An
adjustment under this paragraph shall be effective
after the Secretary transmits to the Committee on
Armed Services of the Senate and the Committee on
National Security of the House of Representatives a
written notification of the adjustment.’’.
SEC. 805. REVISIONS IN INFORMATION REQUIRED TO BE
INCLUDED IN SELECTED ACQUISITION RE-
PORTS.
Section 2432 of title 10, United States Code, is
amended—
(1) in subsection (c)—
(A) by striking out ‘‘and’’ at the end of
subparagraph (B);
(B) by redesignating subparagraph (C) as
subparagraph (D); and
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(C) by inserting after subparagraph (B)
the following new subparagraph (C):
‘‘(C) the current procurement unit cost for each
major defense acquisition program included in the
report and the history of that cost from the date the
program was first included in a Selected Acquisition
Report to the end of the quarter for which the cur-
rent report is submitted; and’’; and
(2) in subsection (e), by striking out paragraph
(8) and redesignating paragraph (9) as paragraph
(8).
SEC. 806. INCREASE IN SIMPLIFIED ACQUISITION THRESH-
OLD FOR HUMANITARIAN OR PEACEKEEPING
OPERATIONS.
Section 2302(7) of title 10, United States Code, is
amended—
(1) by inserting ‘‘(A)’’ after ‘‘(7)’’;
(2) by inserting after ‘‘contingency operation’’
the following: ‘‘or a humanitarian or peacekeeping
operation’’; and
(3) by adding at the end the following:
‘‘(B) In subparagraph (A), the term ‘humani-
tarian or peacekeeping operation’ means a military
operation in support of the provision of humani-
tarian or foreign disaster assistance or in support of
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a peacekeeping operation under chapter VI or VII of
the Charter of the United Nations. The term does
not include routine training, force rotation, or sta-
tioning.’’.
SEC. 807. EXPANSION OF AUDIT RECIPROCITY AMONG FED-
ERAL AGENCIES TO INCLUDE POST-AWARD
AUDITS.
(a) ARMED SERVICES ACQUISITIONS.—Subsection
(d) of section 2313 of title 10, United States Code, is
amended to read as follows:
‘‘(d) LIMITATION ON AUDITS RELATING TO INDI-
RECT COSTS.—The head of an agency may not perform
an audit of indirect costs under a contract, subcontract,
or modification before or after entering into the contract,
subcontract, or modification in any case in which the con-
tracting officer determines that the objectives of the audit
can reasonably be met by accepting the results of an audit
that was conducted by any other department or agency
of the Federal Government within one year preceding the
date of the contracting officer’s determination.’’.
(b) CIVILIAN AGENCY ACQUISITIONS.—Subsection
(d) of section 304C of the Federal Property and Adminis-
trative Services Act of 1949 (41 U.S.C. 254d) is amended
to read as follows:
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‘‘(d) LIMITATION ON AUDITS RELATING TO INDI-
RECT COSTS.—An executive agency may not perform an
audit of indirect costs under a contract, subcontract, or
modification before or after entering into the contract,
subcontract, or modification in any case in which the con-
tracting officer determines that the objectives of the audit
can reasonably be met by accepting the results of an audit
that was conducted by any other department or agency
of the Federal Government within one year preceding the
date of the contracting officer’s determination.’’.
(c) GUIDELINES FOR ACCEPTANCE OF AUDITS BY
STATE AND LOCAL GOVERNMENTS RECEIVING FEDERAL
ASSISTANCE.—The Director of the Office and Manage-
ment and Budget shall issue guidelines to ensure that an
audit of indirect costs performed by the Federal Govern-
ment is accepted by State and local governments that re-
ceive Federal funds under contracts, grants, or other Fed-
eral assistance programs.
SEC. 808. EXTENSION OF PILOT MENTOR-PROTEGE PRO-
GRAM.
Paragraphs (1) and (2) of section 831(j) of the Na-
tional Defense Authorization Act for Fiscal Year 1991 (10
U.S.C. 2302 note) are each amended by striking out
‘‘1996’’ and inserting in lieu thereof ‘‘1997’’.
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Subtitle B—Other Matters
SEC. 821. AMENDMENT TO DEFINITION OF NATIONAL SECU-
RITY SYSTEM UNDER INFORMATION TECH-
NOLOGY MANAGEMENT REFORM ACT OF 1995.
Section 5142(a) of the Information Technology Man-
agement Reform Act of 1996 (division E of Public Law
104–106; 110 Stat. 689; 40 U.S.C. 1452) is amended—
(1) by striking out ‘‘or’’ at the end of para-
graph (4);
(2) by striking out the period at the end of
paragraph (5) and inserting in lieu thereof ‘‘; or’’;
and
(3) by adding at the end the following new
paragraph:
‘‘(6) involves the storage, processing, or for-
warding of classified information and is protected at
all times by procedures established for the handling
of classified information.’’.
SEC. 822. PROHIBITION ON RELEASE OF CONTRACTOR
PROPOSALS UNDER FREEDOM OF INFORMA-
TION ACT.
(a) ARMED SERVICES ACQUISITIONS.—Section 2305
of title 10, United States Code, is amended by adding at
the end the following new subsection:
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‘‘(g) PROHIBITION ON RELEASE OF CONTRACTOR
PROPOSALS.—(1) A proposal in the possession or control
of the Department of Defense may not be made available
to any person under section 552 of title 5.
‘‘(2) In this subsection, the term ‘proposal’ means
any proposal, including a technical, management, or cost
proposal, submitted by a contractor in response to the re-
quirements of a solicitation for a competitive proposal.’’.
(b) CIVILIAN AGENCY ACQUISITIONS.—Section 303B
of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 253b) is amended by adding at the
end the following new subsection:
‘‘(m) PROHIBITION ON RELEASE OF CONTRACTOR
PROPOSALS.—(1) A proposal in the possession or control
of an executive agency may not be made available to any
person under section 552 of title 5.
‘‘(2) In this subsection, the term ‘proposal’ means
any proposal, including a technical, management, or cost
proposal, submitted by a contractor in response to the re-
quirements of a solicitation for a competitive proposal.’’.
SEC. 823. REPEAL OF ANNUAL REPORT BY ADVOCATE FOR
COMPETITION.
Section 20(b) of the Office of Federal Procurement
Policy Act (41 U.S.C. 418(b)) is amended—
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(1) by striking out ‘‘and’’ at the end of para-
graph (3)(B);
(2) by striking out paragraph (4); and
(3) by redesignating paragraphs (5), (6), and
(7) as paragraphs (4), (5), and (6), respectively.
SEC. 824. REPEAL OF BIANNUAL REPORT ON PROCURE-
MENT REGULATORY ACTIVITY.
Subsection (g) of section 25 of the Office of Federal
Procurement Policy Act (41 U.S.C. 421) is repealed.
SEC. 825. REPEAL OF MULTIYEAR LIMITATION ON CON-
TRACTS FOR INSPECTION, MAINTENANCE,
AND REPAIR.
Paragraph (14) of section 210(a) of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 490(a)) is amended by striking out ‘‘for periods
not exceeding three years’’.
SEC. 826. STREAMLINED NOTICE REQUIREMENTS TO CON-
TRACTORS 
AND 
EMPLOYEES 
REGARDING
TERMINATION OR SUBSTANTIAL REDUCTION
IN 
CONTRACTS 
UNDER 
MAJOR 
DEFENSE
PROGRAMS.
(a) ELIMINATION
OF
UNNECESSARY
REQUIRE-
MENTS.—Section 4471 of the Defense Conversion, Rein-
vestment, and Transition Assistance Act of 1992 (division
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D of Public Law 102–484; 10 U.S.C. 2501 note) is
amended—
(1) by striking out subsection (a);
(2) by striking out subsection (f), except para-
graph (4);
(3) by redesignating subsections (b), (c), (d),
(e), and (g) as subsections (a), (b), (c), (d), and (f),
respectively; and
(4) by redesignating such paragraph (4) as sub-
section (e).
(b) NOTICE TO CONTRACTORS.—Subsection (a) of
such section, as redesignated by subsection (a)(3), is
amended by striking out paragraphs (1) and (2) and in-
serting in lieu thereof the following:
‘‘(1) shall identify each contract (if any) under
major defense programs of the Department of De-
fense that will be terminated or substantially re-
duced as a result of the funding levels provided in
that Act; and
‘‘(2) shall ensure that notice of the termination
of, or substantial reduction in, the funding of the
contract is provided—
‘‘(A) directly to the prime contractor under
the contract; and
‘‘(B) directly to the Secretary of Labor.’’.
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(c) NOTICE TO SUBCONTRACTORS.—Subsection (b)
of such section, as redesignated by subsection (a)(3), is
amended—
(1) by striking out ‘‘As soon as’’ and all that
follows through ‘‘that program,’’ in the matter pre-
ceding paragraph (1) and inserting in lieu thereof
‘‘Not later than 60 days after the date on which the
prime contractor for a contract under a major de-
fense program receives notice under subsection (a),’’;
(2) in paragraph (1)—
(A) by striking out ‘‘for that program
under a contract’’ and inserting in lieu thereof
‘‘for that prime contract for subcontracts’’; and
(B) by striking out ‘‘for the program’’; and
(3) in paragraph (2)(A), by striking out ‘‘for
the program under a contract’’ and inserting in lieu
thereof ‘‘for subcontracts’’.
(d) NOTICE TO EMPLOYEES AND STATE DISLOCATED
WORKER UNIT.—Subsection (c) of such section, as redes-
ignated by subsection (a)(3), is amended by striking out
‘‘under subsection (a)(1)’’ and all that follows through ‘‘a
defense program,’’ in the matter preceding paragraph (1)
and inserting in lieu thereof ‘‘under subsection (a),’’.
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(e) CROSS REFERENCES AND CONFORMING AMEND-
MENTS.—(1) Subsection (d) of such section, as redesig-
nated by subsection (a)(3), is amended—
(A) by striking out ‘‘a major defense program
provided under subsection (d)(1)’’ and inserting in
lieu thereof ‘‘a defense contract provided under sub-
section (c)(1)’’; and
(B) by striking out ‘‘the program’’ and insert-
ing in lieu thereof ‘‘the contract’’.
(2) Subsection (e) of such section, as redesignated by
subsection (a)(4), is amended—
(A) by striking out ‘‘ELIGIBILITY’’ and inserting
in lieu thereof ‘‘ELIGIBILITY’’; and
(B) by striking out ‘‘under paragraph (3)’’ and
inserting in lieu thereof ‘‘or cancellation of the ter-
mination of, or substantial reduction in, contract
funding’’.
(3) Subsection (f) of such section, as redesignated by
subsection (a)(3), is amended in paragraph (2)—
(A) by inserting ‘‘a defense contract under’’ be-
fore ‘‘a major defense program’’; and
(B) by striking out ‘‘contracts under the pro-
gram’’ and inserting in lieu thereof ‘‘the funds obli-
gated by the contract’’.
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SEC. 827. REPEAL OF NOTICE REQUIREMENTS FOR SUB-
STANTIALLY OR SERIOUSLY AFFECTED PAR-
TIES IN DOWNSIZING EFFORTS.
Sections 4101 and 4201 of the National Defense Au-
thorization Act for Fiscal Year 1991 (Public Law 101–
510; 104 Stat. 1850, 1851; 10 U.S.C. 2391 note) are re-
pealed.
SEC. 828. TESTING OF DEFENSE ACQUISITION PROGRAMS.
(a) IN GENERAL.—Section 2366 of title 10, United
States Code, is amended—
(1) by striking out ‘‘survivability’’ each place it
appears (including in the section heading) and in-
serting in lieu thereof ‘‘vulnerability’’; and
(2) in subsection (b)—
(A) by striking out ‘‘Survivability’’ and in-
serting in lieu thereof ‘‘Vulnerability’’; and
(B) by inserting after paragraph (2) the
following new paragraph:
‘‘(3) Testing should begin at the component, sub-
system, and subassembly level, culminating with tests of
the complete system configured for combat.’’.
(b) CLERICAL AMENDMENT.—The item relating to
such section in the table of sections at the beginning of
chapter 139 of such title is amended to read as follows:
‘‘2366. Major systems and munitions programs: vulnerability testing and
lethality testing required before full-scale production.’’.
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SEC. 829. DEPENDENCY OF NATIONAL TECHNOLOGY AND
INDUSTRIAL BASE ON SUPPLIES AVAILABLE
ONLY FROM FOREIGN COUNTRIES.
(a) NATIONAL SECURITY OBJECTIVES
FOR NA-
TIONAL TECHNOLOGY AND INDUSTRIAL BASE.—Section
2501(a) of title 10, United States Code, is amended by
adding at the end the following:
‘‘(5) Providing for the development, manufac-
ture, and supply of items and technologies critical to
the production and sustainment of advanced military
weapon systems with minimal reliance on items for
which the source of supply, manufacture, or tech-
nology is outside of the United States and Canada
and for which there is no immediately available
source in the United States or Canada.’’.
(b) ASSESSMENT OF EXTENT OF UNITED STATES
DEPENDENCY ON FOREIGN SOURCE ITEMS.—Subsection
(c) of section 2505 of such title is amended to read as
follows:
‘‘(c) ASSESSMENT OF EXTENT OF DEPENDENCY ON
FOREIGN SOURCE ITEMS.—Each assessment under sub-
section (a) shall include a separate discussion and presen-
tation regarding the extent to which the national tech-
nology and industrial base is dependent on items for which
the source of supply, manufacture, or technology is outside
of the United States and Canada and for which there is
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no immediately available source in the United States or
Canada. The discussion and presentation shall include the
following:
‘‘(1) An assessment of the overall degree of de-
pendence by the national technology and industrial
base on such foreign items, including a comparison
with the degree of dependence identified in the pre-
ceding assessment.
‘‘(2) Identification of major systems (as defined
in section 2302 of this title) under development or
production containing such foreign items, including
an identification of all such foreign items for each
system.
‘‘(3) An analysis of the production or develop-
ment risks resulting from the possible disruption of
access to such foreign items, including consideration
of both peacetime and wartime scenarios.
‘‘(4) An analysis of the importance of retaining
domestic production sources for the items specified
in section 2534 of this title.
‘‘(5) A discussion of programs and initiatives in
place to reduce dependence by the national tech-
nology and industrial base on such foreign items.
‘‘(6) A discussion of proposed policy or legisla-
tive initiatives recommended to reduce the depend-
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ence of the national technology and industrial base
on such foreign items.’’.
(c) TIME FOR COMPLETION OF NEXT DEFENSE CA-
PABILITY ASSESSMENT.—Notwithstanding the schedule
prescribed by the Secretary of Defense under subsection
(d) of section 2505 of title 10, United States Code, the
National Defense Technology and Industrial Base Council
shall complete the next defense capability assessment re-
quired under such section not later than March 1, 1997.
SEC. 830. SENSE OF CONGRESS REGARDING TREATMENT
OF DEPARTMENT OF DEFENSE CABLE TELE-
VISION FRANCHISE AGREEMENTS.
It is the sense of Congress that the United States
Court of Federal Claims should transmit to Congress the
report required by section 823 of Public Law 104–106
(110 Stat. 399) on or before the date specified in that
section.
SEC. 831. EXTENSION OF DOMESTIC SOURCE LIMITATION
FOR VALVES AND MACHINE TOOLS.
Subparagraph (C) of section 2534(c)(2) is amended
by striking out ‘‘1996’’ and inserting in lieu thereof
‘‘2001’’.
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SEC. 832. DEMONSTRATION PROJECT FOR PURCHASE OF
FIRE, SECURITY, POLICE, PUBLIC WORKS,
AND UTILITY SERVICES FROM LOCAL GOV-
ERNMENT AGENCIES.
(a) EXTENSION
OF DEMONSTRATION PROJECT.—
Section 816 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2820)
is amended by adding at the end the following new sub-
section:
‘‘(c) DURATION OF PROJECT.—The authority to pur-
chase services under the demonstration project shall expire
on September 30, 1998.’’.
(b) REPORTING REQUIREMENTS.—Subsection (b) of
such section is amended by striking out ‘‘, 1996’’ and in-
serting in lieu thereof ‘‘of each of the years 1997 and
1998’’.
SEC. 833. STUDY OF EFFECTIVENESS OF DEFENSE MERG-
ERS.
(a) STUDY.—The Secretary of Defense shall conduct
a study on mergers and acquisitions in the defense sector.
The study shall address the following:
(1) The effectiveness of defense mergers and
acquisitions in eliminating excess capacity within the
defense industry.
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(2) The degree of change in the dependence by
defense contractors on defense-related Federal con-
tracts within their overall business after mergers.
(3) The effect on defense industry employment
resulting from defense mergers and acquisitions oc-
curring during the three years preceding the date of
the enactment of this Act.
(b) REPORT.—Not later than six months after the
date of the enactment of this Act, the Secretary of Defense
shall submit to Congress a report on the results of the
study conducted under subsection (a).
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND
MANAGEMENT
SEC. 901. ADDITIONAL REQUIRED REDUCTION IN DEFENSE
ACQUISITION WORKFORCE.
Section 906(d) of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat.
405) is amended—
(1) in paragraph (1), by striking out ‘‘during
fiscal year 1996’’ and all that follows and inserting
in lieu thereof ‘‘so that—
‘‘(A) the total number of such positions as of
October 1, 1996, is less than the baseline number by
at least 15,000; and
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‘‘(B) the total number of such positions as of
October 1, 1997, is less than the baseline number by
at least 40,000.’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3) For purposes of this subsection, the term ‘base-
line number’ means the total number of defense acquisi-
tion personnel positions as of October 1, 1995.’’.
SEC. 902. REDUCTION OF PERSONNEL ASSIGNED TO OF-
FICE OF THE SECRETARY OF DEFENSE.
(a) PERMANENT LIMITATION
ON OSD PERSON-
NEL.—Effective October 1, 1999, the number of OSD per-
sonnel may not exceed 75 percent of the baseline number.
(b) PHASED REDUCTION.—The number of OSD per-
sonnel—
(1) as of October 1, 1997, may not exceed 85
percent of the baseline number; and
(2) as of October 1, 1998, may not exceed 80
percent of the baseline number.
(c) BASELINE NUMBER.—For purposes of this sec-
tion, the term ‘‘baseline number’’ means the number of
OSD personnel as of October 1, 1994.
(d) OSD PERSONNEL DEFINED.—For purposes of
this section, the term ‘‘OSD personnel’’ means military
and civilian personnel of the Department of Defense who
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are assigned to, or employed in, functions in the Office
of the Secretary of Defense (including Direct Support Ac-
tivities of that Office and the Washington Headquarters
Services of the Department of Defense).
(e) LIMITATION
ON
REASSIGNMENT
OF
FUNC-
TIONS.—In carrying out reductions in the number of per-
sonnel assigned to, or employed in, the Office of the De-
partment of Defense in order to comply with this section,
the Secretary of Defense may not reassign functions solely
in order to evade the requirements contained in this sec-
tion.
(f) FLEXIBILITY.—If the Secretary of Defense deter-
mines, and certifies to Congress, that the limitation in
subsection (b) with respect to any fiscal year would ad-
versely affect United States national security, the limita-
tion under that subsection with respect to that fiscal year
may be waived. If the Secretary of Defense determines,
and certifies to Congress, that the limitation in subsection
(a) during fiscal year 1999 would adversely affect United
States national security, the limitation under that sub-
section with respect to that fiscal year may be waived. The
authority under this subsection may be used only once,
with respect to a single fiscal year.
(g) REPEAL
OF
PRIOR
REQUIREMENT.—Section
901(d) of the National Defense Authorization Act for Fis-
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cal Year 1996 (Public Law 104–106; 110 Stat. 410) is
repealed.
SEC. 903. REPORT ON MILITARY DEPARTMENT HEAD-
QUARTERS STAFFS.
(a) REVIEW BY SECRETARY OF DEFENSE.—The Sec-
retary of Defense shall conduct a review of the size, mis-
sion, organization, and functions of the military depart-
ment headquarters staffs. This review shall include the fol-
lowing:
(1) An assessment on the adequacy of the
present organization structure to efficiently and ef-
fectively support the mission of the military depart-
ments.
(2) An assessment of options to reduce the
number of personnel assigned to the military depart-
ment headquarters staffs.
(3) An assessment of the extent of unnecessary
duplication of functions between the Office of the
Secretary of Defense and the military department
headquarters staffs.
(4) An assessment of the possible benefits that
could be derived from further functional consolida-
tion between the civilian secretariat of the military
departments and the staffs of the military service
chiefs.
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(5) An assessment of the possible benefits that
could be derived from reducing the number of civil-
ian officers in the military departments who are ap-
pointed by and with the advice and consent of the
Senate.
(b) REPORT.—Not later than March 1, 1997, the
Secretary of Defense shall submit to the congressional de-
fense committees a report containing—
(1) the findings and conclusions of the Sec-
retary resulting from the review under subsection
(a); and
(2) a plan for implementing resulting rec-
ommendations, including proposals for legislation
(with supporting rationale) that would be required
as result of the review.
(c) REDUCTION IN TOTAL NUMBER OF PERSONNEL
ASSIGNED.—In developing the plan under subsection
(b)(2), the Secretary shall make every effort to provide
for significant reductions in the overall number of military
and civilian personnel assigned to or serving in the mili-
tary department headquarters staffs.
(d) 
MILITARY
DEPARTMENT
HEADQUARTERS
STAFFS DEFINED.—For the purposes of this section, the
term ‘‘military department headquarters staffs’’ means
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the offices, organizations, and other elements of the De-
partment of Defense comprising the following:
(1) The Office of the Secretary of the Army.
(2) The Army Staff.
(3) The Office of the Secretary of the Air
Force.
(4) The Air Staff.
(5) The Office of the Secretary of the Navy.
(6) The Office of the Chief of Naval Oper-
ations.
(7) Headquarters, Marine Corps.
SEC. 904. EXTENSION OF EFFECTIVE DATE FOR CHARTER
FOR 
JOINT 
REQUIREMENTS 
OVERSIGHT
COUNCIL.
Section 905(b) of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat.
404) is amended by striking out ‘‘January 31, 1997’’ and
inserting in lieu thereof ‘‘January 31, 1998’’.
SEC. 905. REMOVAL OF SECRETARY OF THE ARMY FROM
MEMBERSHIP ON THE FOREIGN TRADE ZONE
BOARD.
The first section of the Act of June 18, 1934 (Public
Law Numbered 397, Seventy-third Congress; 48 Stat.
998) (19 U.S.C. 81a), popularly known as the ‘‘Foreign
Trade Zones Act’’, is amended—
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(1) in subsection (b), by striking out ‘‘the Sec-
retary of the Treasury, and the Secretary of War’’
and inserting in lieu thereof ‘‘and the Secretary of
the Treasury’’; and
(2) in subsection (c), by striking out ‘‘Alaska,
Hawaii,’’.
SEC. 906. MEMBERSHIP OF THE AMMUNITION STORAGE
BOARD.
Section 172(a) of title 10, United States Code, is
amended by striking out ‘‘a joint board of officers selected
by them’’ and inserting in lieu thereof ‘‘a joint board se-
lected by them composed of officers, civilian officers and
employees of the Department of Defense, or both’’.
SEC. 907. DEPARTMENT OF DEFENSE DISBURSING OFFI-
CIAL 
CHECK 
CASHING 
AND 
EXCHANGE
TRANSACTIONS.
Section 3342(b) of title 31, United States Code, is
amended—
(1) by striking out the period at the end of
paragraph (3) and inserting in lieu thereof a semi-
colon;
(2) by striking out ‘‘and’’ at the end of para-
graph (5);
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(3) by striking out the period at the end of
paragraph (6) and inserting in lieu thereof ‘‘; or’’;
and
(4) by adding at the end the following new
paragraph:
‘‘(7) a Federal credit union that at the request
of the Secretary of Defense is operating on a United
States military installation in a foreign country, but
only if that country does not permit contractor-oper-
ated military banking facilities to operate on such
installations.’’.
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
SEC. 1001. TRANSFER AUTHORITY.
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—
(1) Upon determination by the Secretary of Defense that
such action is necessary in the national interest, the Sec-
retary may transfer amounts of authorizations made avail-
able to the Department of Defense in this division for fis-
cal year 1997 between any such authorizations for that
fiscal year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and be
available for the same purposes as the authorization to
which transferred.
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(2) The total amount of authorizations that the Sec-
retary of Defense may transfer under the authority of this
section may not exceed $2,000,000,000.
(b) LIMITATIONS.—The authority provided by this
section to transfer authorizations—
(1) may only be used to provide authority for
items that have a higher priority than the items
from which authority is transferred; and
(2) may not be used to provide authority for an
item that has been denied authorization by Con-
gress.
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A
transfer made from one account to another under the au-
thority of this section shall be deemed to increase the
amount authorized for the account to which the amount
is transferred by an amount equal to the amount trans-
ferred.
(d) NOTICE
TO CONGRESS.—The Secretary shall
promptly notify Congress of each transfer made under
subsection (a).
SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.
(a) STATUS OF CLASSIFIED ANNEX.—The Classified
Annex prepared by the Committee on National Security
of the House of Representatives to accompany the bill
H.R. 3230 of the One Hundred Fourth Congress and
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transmitted to the President is hereby incorporated into
this Act.
(b) CONSTRUCTION WITH OTHER PROVISIONS OF
ACT.—The amounts specified in the Classified Annex are
not in addition to amounts authorized to be appropriated
by other provisions of this Act.
(c) LIMITATION ON USE OF FUNDS.—Funds appro-
priated pursuant to an authorization contained in this Act
that are made available for a program, project, or activity
referred to in the Classified Annex may only be expended
for such program, project, or activity in accordance with
such terms, conditions, limitations, restrictions, and re-
quirements as are set out for that program, project, or
activity in the Classified Annex.
(d) DISTRIBUTION
OF CLASSIFIED ANNEX.—The
President shall provide for appropriate distribution of the
Classified Annex, or of appropriate portions of the annex,
within the executive branch of the Government.
SEC. 1003. AUTHORITY FOR OBLIGATION OF CERTAIN UN-
AUTHORIZED FISCAL YEAR 1996 DEFENSE AP-
PROPRIATIONS.
(a) AUTHORITY.—The amounts described in sub-
section (b) may be obligated and expended for programs,
projects, and activities of the Department of Defense in
accordance with fiscal year 1996 defense appropriations.
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(b) COVERED AMOUNTS.—The amounts referred to
in subsection (a) are the amounts provided for programs,
projects, and activities of the Department of Defense in
fiscal year 1996 defense appropriations that are in excess
of the amounts provided for such programs, projects, and
activities in fiscal year 1996 defense authorizations.
(c) DEFINITIONS.—For the purposes of this section:
(1) FISCAL
YEAR
1996
DEFENSE
APPROPRIA-
TIONS.—The term ‘‘fiscal year 1996 defense appro-
priations’’ means amounts appropriated or otherwise
made available to the Department of Defense for fis-
cal year 1996 in the Department of Defense Appro-
priations Act, 1996 (Public Law 104–61).
(2) FISCAL YEAR 1996 DEFENSE AUTHORIZA-
TIONS.—The term ‘‘fiscal year 1996 defense author-
izations’’ means amounts authorized to be appro-
priated for the Department of Defense for fiscal
year 1996 in the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104–106).
SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUP-
PLEMENTAL APPROPRIATIONS FOR FISCAL
YEAR 1996.
Amounts authorized to be appropriated to the De-
partment of Defense for fiscal year 1996 in the National
Defense Authorization Act for Fiscal Year 1996 (Public
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Law 104–106) are hereby adjusted, with respect to any
such authorized amount, by the amount by which appro-
priations pursuant to such authorization were increased
(by a supplemental appropriation) or decreased (by a re-
scission), or both, in the Omnibus Consolidated Rescis-
sions and Appropriations Act of 1996 (Public Law 104–
134).
SEC. 1005. FORMAT FOR BUDGET REQUESTS FOR NAVY/
MARINE CORPS AND AIR FORCE AMMUNI-
TION ACCOUNTS.
Section 114 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(f) In each budget submitted by the President to
Congress under section 1105 of title 31, amounts re-
quested for procurement of ammunition for the Navy and
Marine Corps, and for procurement of ammunition for the
Air Force, shall be set forth separately from other
amounts requested for procurement.’’.
SEC. 1006. FORMAT FOR BUDGET REQUESTS FOR DEFENSE
AIRBORNE RECONNAISSANCE PROGRAM.
(a) REQUIREMENT.—The Secretary of Defense shall
ensure that in the budget justification documents for any
fiscal year there is set forth separately amounts requested
for each program, project, or activity within the Defense
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Airborne Reconnaissance Program, with a unique program
element provided for funds requested for research, devel-
opment, test, and evaluation for each such program,
project, or activity and a unique procurement line item
provided for funds requested for procurement for each
such program, project, or activity.
(b) DEFENSE BUDGET.—For purposes of subsection
(a), the term ‘‘budget justification documents’’ means the
supporting budget documentation submitted to the con-
gressional defense committees in support of the budget of
the Department of Defense for a fiscal year as included
in the budget of the President submitted under section
1105 of title 31, United States Code, for that fiscal year.
Subtitle B—Reports and Studies
SEC. 1021. ANNUAL REPORT ON OPERATION PROVIDE COM-
FORT AND OPERATION ENHANCED SOUTH-
ERN WATCH.
(a) ANNUAL REPORT.—Not later than March 1 of
each year, the Secretary of Defense shall submit to Con-
gress a report on Operation Provide Comfort and Oper-
ation Enhanced Southern Watch.
(b) MATTERS RELATING TO OPERATION PROVIDE
COMFORT.—Each report under subsection (a) shall in-
clude, with respect to Operation Provide Comfort, the fol-
lowing:
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(1) A detailed presentation of the projected
costs to be incurred by the Department of Defense
for that operation during the fiscal year in which the
report is submitted and projected for the following
fiscal year, together with a discussion of missions
and functions expected to be performed by the De-
partment as part of that operation during each of
those fiscal years.
(2) A detailed presentation of the projected
costs to be incurred by other departments and agen-
cies of the Federal Government participating in or
providing support to that operation during each of
those fiscal years.
(3) A discussion of options being pursued to re-
duce the involvement of the Department of Defense
in those aspects of that operation that are not di-
rectly related to the military mission of the Depart-
ment of Defense.
(4) A discussion of the exit strategy for United
States involvement in, and support for, that oper-
ation.
(5) A description of alternative approaches to
accomplishing the mission of that operation that are
designed to limit the scope and cost to the Depart-
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ment of Defense of accomplishing that mission while
maintaining mission success.
(6) The contributions (both in-kind and actual)
by other nations to the costs of conducting that op-
eration.
(7) A detailed presentation of significant Iraqi
military activity (including specific violations of the
no-fly zone) determined to jeopardize the security of
the Kurdish population in northern Iraq.
(c) MATTERS RELATING TO OPERATION ENHANCED
SOUTHERN WATCH.—Each report under subsection (a)
shall include, with respect to Operation Enhanced South-
ern Watch, the following:
(1) The expected duration and annual costs of
the various elements of that operation.
(2) The political and military objectives associ-
ated with that operation.
(3) The contributions (both in-kind and actual)
by other nations to the costs of conducting that op-
eration.
(4) A description of alternative approaches to
accomplishing the mission of that operation that are
designed to limit the scope and cost of accomplishing
that mission while maintaining mission success.
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(5) A comprehensive discussion of the political
and military objectives and initiatives that the De-
partment of Defense has pursued, and intends to
pursue, in order to reduce United States involvement
in that operation.
(6) A detailed presentation of significant Iraqi
military activity (including specific violations of the
no-fly zone) determined to jeopardize the security of
the Shiite population in southern Iraq.
(d) TERMINATION OF REPORT REQUIREMENT.—The
requirement under subsection (a) shall cease to apply with
respect to an operation named in that subsection upon the
termination of United States involvement in that oper-
ation.
(e) DEFINITIONS.—For purposes of this section:
(1) 
OPERATION
ENHANCED
SOUTHERN
WATCH.—The term ‘‘Operation Enhanced Southern
Watch’’ means the operation of the Department of
Defense that as of October 30, 1995, is designated
as Operation Enhanced Southern Watch.
(2) OPERATION PROVIDE COMFORT.—The term
‘‘Operation Provide Comfort’’ means the operation
of the Department of Defense that as of October 30,
1995, is designated as Operation Provide Comfort.
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SEC. 1022. REPORT ON PROTECTION OF NATIONAL INFOR-
MATION INFRASTRUCTURE.
(a) REPORT REQUIREMENT.—Not later than 180
days after the date of the enactment of this Act, the Presi-
dent shall submit to Congress a report setting forth the
national policy on protecting the national information in-
frastructure against strategic attacks.
(b) MATTERS TO BE INCLUDED.—The report shall
include the following:
(1) A description of the national policy and
plans to meet essential Government and civilian
needs during a national security emergency associ-
ated with a strategic attack on elements of the na-
tional infrastructure the functioning of which depend
on networked computer systems.
(2) The identification of information infrastruc-
ture functions that must be performed during such
an emergency.
(3) The assignment of responsibilities to Fed-
eral departments and agencies, and a description of
the roles of Government and industry, relating to in-
dications and warning of, assessment of, response to,
and reconstitution after, potential strategic attacks
on the critical national infrastructures described
under paragraph (1).
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(c) OUTSTANDING ISSUES.—The report shall also
identify any outstanding issues in need of further study
and resolution, such as technology and funding shortfalls,
and legal and regulatory considerations.
SEC. 1023. REPORT ON WITNESS INTERVIEW PROCEDURES
FOR DEPARTMENT OF DEFENSE CRIMINAL
INVESTIGATIONS.
(a) SURVEY OF MILITARY DEPARTMENT POLICIES
AND PRACTICES.—The Comptroller General of the United
States shall conduct a survey of the policies and practices
of the military criminal investigative organizations with re-
spect to the manner in which interviews of suspects and
witnesses are conducted in connection with criminal inves-
tigations. The purpose of the survey shall be to ascertain
whether or not investigators and agents from those organi-
zations engage in illegal, unnecessary, or inappropriate
harassment and intimidation of individuals being inter-
viewed.
(b) REPORT.—Not later than 180 days after the date
of the enactment of this Act, the Comptroller General shall
submit to the Committee on National Security of the
House of Representatives and the Committee on Armed
Services of the Senate a report concerning the survey
under subsection (a). The report shall specifically address
the following:
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(1) The extent to which investigators of the
military criminal investigative organizations engage
in illegal or inappropriate practices in connection
with interviews of suspects in or witnesses to crimes.
(2) The extent to which the interview policies
established by the Department of Defense directive
or service regulation are adequate to instruct and
guide investigators in the proper conduct of subject
and witness interviews.
(3) The desirability and feasibility of requiring
the video and audio recording of all interviews.
(4) The desirability and feasibility of making
such recordings or written transcriptions of inter-
views, or both, available on demand to the subject or
witness interviewed.
(5) The extent to which existing directives or
regulations specify a prohibition against the display
by agents of those organizations of weapons during
interviews and the extent to which agents conducting
interviews inappropriately display weapons during
interviews.
(6) The extent to which existing directives or
regulations forbid agents of those organizations from
making judgmental statements during interviews re-
garding the guilt of the interviewee or the con-
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Subtitle C—Other Matters
SEC. 1031. INFORMATION SYSTEMS SECURITY PROGRAM.
(a) ALLOCATION.—Of the amounts appropriated for
the Department of Defense for the Defense Information
Infrastructure for each of fiscal years 1998 through 2001,
the Secretary of Defense shall allocate to an information
systems security program, under a separate program ele-
ment, amounts as follows:
(1) For fiscal year 1998, 2.5 percent.
(2) For fiscal year 1999, 3.0 percent.
(3) For fiscal year 2000, 3.5 percent.
(4) For fiscal year 2001, 4.0 percent.
(b) RELATIONSHIP TO OTHER AMOUNTS.—Amounts
allocated under subsection (a) are in addition to amounts
appropriated to the National Security Agency and the De-
fense Advanced Research Projects Agency for information
security development, acquisition, and operations.
(c) ANNUAL REPORT.—The Secretary of Defense
shall submit to the congressional defense committee and
congressional intelligence committees a report not later
than April 15 of each year from 1998 through 2002 that
describes information security objectives of the Depart-
ment of Defense, the progress made during the previous
year in meeting those objectives, and plans of the Sec-
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retary with respect to meeting those objectives for the next
fiscal year.
SEC. 1032. AVIATION AND VESSEL WAR RISK INSURANCE.
(a) AVIATION RISK INSURANCE.—(1) Chapter 931 of
title 10, United States Code, is amended by adding at the
end the following new section:
‘‘§ 9514. Indemnification of Department of Transpor-
tation for losses covered by defense-relat-
ed aviation insurance
‘‘(a) PROMPT INDEMNIFICATION REQUIRED.—In the
event of a loss that is covered by defense-related aviation
insurance, the Secretary of Defense shall promptly indem-
nify the Secretary of Transportation for the amount of
the loss. The Secretary of Defense shall make such indem-
nification—
‘‘(1) in the case of a claim for the loss of an
aircraft hull, not later than 30 days following the
date of the presentment of the claim to the Sec-
retary of Transportation; and
‘‘(2) in the case of any other claim, not later
than 180 days after the date on which the claim is
determined by the Secretary of Transportation to be
payable.
‘‘(b) SOURCE OF FUNDS FOR PAYMENT OF INDEM-
NITY.—The Secretary may pay an indemnity described in
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subsection (a) from any funds available to the Department
of Defense for operation and maintenance, and such sums
as may be necessary for payment of such indemnity are
hereby authorized to be transferred to the Secretary of
Transportation for such purpose.
‘‘(c) NOTICE TO CONGRESS.—In the event of a loss
that is covered by defense-related aviation insurance in the
case of an incident in which the covered loss is (or is ex-
pected to be) in an amount in excess of $1,000,000, the
Secretary of Defense shall submit to Congress—
‘‘(1) notification of the loss as soon after the
occurrence of the loss as possible and in no event
more than 30 days after the date of the loss; and
‘‘(2) semiannual reports thereafter updating the
information submitted under paragraph (1) and
showing with respect to losses arising from such in-
cident the total amount expended to cover such
losses, the source of those funds, pending litigation,
and estimated total cost to the Government.
‘‘(d) IMPLEMENTING MATTERS.—(1) Payment of in-
demnification under this section is not subject to section
2214 or 2215 of this title or any other provision of law
requiring notification to Congress before funds may be
transferred.
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‘‘(2) Consolidation of claims arising from the same
incident is not required before indemnification of the Sec-
retary of Transportation for payment of a claim may be
made under this section.
‘‘(e) CONSTRUCTION WITH OTHER TRANSFER AU-
THORITY.—Authority to transfer funds under this section
is in addition to any other authority provided by law to
transfer funds (whether enacted before, on, or after the
date of the enactment of this section) and is not subject
to any dollar limitation or notification requirement con-
tained in any other such authority to transfer funds.
‘‘(f) DEFINITIONS.—In this section:
‘‘(1) 
DEFENSE-RELATED
AVIATION
INSUR-
ANCE.—The term ‘defense-related aviation insur-
ance’ means aviation insurance and reinsurance pro-
vided through policies issued by the Secretary of
Transportation under chapter 443 of title 49 that
pursuant to section 44305(b) of that title is provided
by that Secretary without premium at the request of
the Secretary of Defense and is covered by an in-
demnity agreement between the Secretary of Trans-
portation and the Secretary of Defense.
‘‘(2) LOSS.—The term ‘loss’ includes damage to
or destruction of property, personal injury or death,
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and other liabilities and expenses covered by the de-
fense-related aviation insurance.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘9514. Indemnification of Department of Transportation for losses covered by
defense-related aviation insurance.’’.
(b) VESSEL WAR RISK INSURANCE.—(1) Chapter
157 of title 10, United States Code, is amended by adding
after section 2644, as added by section 364(a), the follow-
ing new section:
‘‘§ 2645. Indemnification of Department of Transpor-
tation for losses covered by vessel war
risk insurance
‘‘(a) PROMPT INDEMNIFICATION REQUIRED.—In the
event of a loss that is covered by vessel war risk insurance,
the Secretary of Defense shall promptly indemnify the
Secretary of Transportation for the amount of the loss.
The Secretary of Defense shall make such indemnifica-
tion—
‘‘(1) in the case of a claim for a loss to a vessel,
not later than 90 days following the date of the ad-
judication or settlement of the claim by the Sec-
retary of Transportation; and
‘‘(2) in the case of any other claim, not later
than 180 days after the date on which the claim is
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determined by the Secretary of Transportation to be
payable.
‘‘(b) SOURCE OF FUNDS FOR PAYMENT OF INDEM-
NITY.—The Secretary may pay an indemnity described in
subsection (a) from any funds available to the Department
of Defense for operation and maintenance, and such sums
as may be necessary for payment of such indemnity are
hereby authorized to be transferred to the Secretary of
Transportation for such purpose.
‘‘(c) DEPOSIT OF FUNDS.—(1) Any amount trans-
ferred to the Secretary of Transportation under this sec-
tion shall be deposited in, and merged with amounts in,
the Vessel War Risk Insurance Fund as provided in the
second sentence of section 1208(a) of the Merchant Ma-
rine Act, 1936 (46 U.S.C. App. 1288(a)).
‘‘(2) In this subsection, the term ‘Vessel War Risk
Insurance Fund’ means the insurance fund referred to in
the first sentence of section 1208(a) of the Merchant Ma-
rine Act, 1936 (46 U.S.C. App. 1288(a)).
‘‘(d) NOTICE TO CONGRESS.—In the event of a loss
that is covered by vessel war risk insurance in the case
of an incident in which the covered loss is (or is expected
to be) in an amount in excess of $1,000,000, the Secretary
of Defense shall submit to Congress—
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‘‘(1) notification of the loss as soon after the
occurrence of the loss as possible and in no event
more than 30 days after the date of the loss; and
‘‘(2) semiannual reports thereafter updating the
information submitted under paragraph (1) and
showing with respect to losses arising from such in-
cident the total amount expended to cover such
losses, the source of such funds, pending litigation,
and estimated total cost to the Government.
‘‘(e) IMPLEMENTING MATTERS.—(1) Payment of in-
demnification under this section is not subject to section
2214 or 2215 of this title or any other provision of law
requiring notification to Congress before funds may be
transferred.
‘‘(2) Consolidation of claims arising from the same
incident is not required before indemnification of the Sec-
retary of Transportation for payment of a claim may be
made under this section.
‘‘(f) CONSTRUCTION WITH OTHER TRANSFER AU-
THORITY.—Authority to transfer funds under this section
is in addition to any other authority provided by law to
transfer funds (whether enacted before, on, or after the
date of the enactment of this section) and is not subject
to any dollar limitation or notification requirement con-
tained in any other such authority to transfer funds.
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‘‘(g) DEFINITIONS.—In this section:
‘‘(1) VESSEL WAR RISK INSURANCE.—The term
‘vessel war risk insurance’ means insurance and re-
insurance provided through policies issued by the
Secretary of Transportation under title XII of the
Merchant Marine Act, 1936 (46 U.S.C. App. 1281
et seq.), that is provided by that Secretary without
premium at the request of the Secretary of Defense
and is covered by an indemnity agreement between
the Secretary of Transportation and the Secretary of
Defense.
‘‘(2) LOSS.—The term ‘loss’ includes damage to
or destruction of property, personal injury or death,
and other liabilities and expenses covered by the ves-
sel war risk insurance.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding after the item relating to
section 2644, as added by section 364(c)(3), the following
new item:
‘‘2645. Indemnification of Department of Transportation for losses covered by
vessel war risk insurance.’’.
SEC. 1033. AIRCRAFT ACCIDENT INVESTIGATION BOARDS.
(a) 
INDEPENDENCE
AND
OBJECTIVITY
OF
BOARDS.—(1) Chapter 134 of title 10, United States
Code, is amended by adding at the end the following new
section:
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‘‘§ 2255. Aircraft accident investigation boards: inde-
pendence and objectivity
‘‘(a) REQUIRED MEMBERSHIP OF BOARDS.—When-
ever the Secretary of a military department convenes a
aircraft accident investigation board to conduct an acci-
dent investigation of an accident involving an aircraft
under the jurisdiction of the Secretary, the Secretary shall
select the membership of the board so that—
‘‘(1) a majority of the voting members of the
board are selected from units outside the chain of
command of the mishap unit; and
‘‘(2) at least one voting member of the board is
an officer or an employee assigned to the relevant
service safety center.
‘‘(b) DETERMINATION
OF UNITS OUTSIDE SAME
CHAIN OF COMMAND.—For purposes of this section, a
unit shall be considered to be outside the chain of com-
mand of another unit if the two units do not have a com-
mon commander in their respective chains of command
below a position for which the authorized grade is major
general or rear admiral.
‘‘(c) MISHAP UNIT DEFINED.—In this section, the
term ‘mishap unit’, with respect to an aircraft accident
investigation, means the unit of the armed forces (at the
squadron level or equivalent) to which was assigned the
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flight crew of the aircraft that sustained the accident that
is the subject of the investigation.
‘‘(d) SERVICE SAFETY CENTER.—For purposes of
this section, a service safety center is the single office or
separate operating agency of a military department that
has responsibility for the management of aviation safety
matters for that military department.’’.
(2) The table of sections at the beginning of sub-
chapter II of such chapter is amended by adding at the
end the following new item:
‘‘2255. Aircraft accident investigation boards: independence and objectivity.’’.
(b) EFFECTIVE DATE.—Section 2255 of title 10,
United States Code, as added by subsection (a), shall
apply with respect to any aircraft accident investigation
board convened by the Secretary of a military department
after the end of the six-month period beginning on the
date of the enactment of this Act.
SEC. 1034. AUTHORITY FOR USE OF APPROPRIATED FUNDS
FOR RECRUITING FUNCTIONS.
(a) AUTHORITY.—Chapter 31 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 520c. Recruiting functions: use of funds
‘‘Under regulations prescribed by the Secretary con-
cerned, funds appropriated to the Department of Defense
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may be expended for small meals and snacks during re-
cruiting functions for the following persons:
‘‘(1) Persons who have entered the Delayed
Entry Program under section 513 of this title and
other persons who are the subject of recruiting ef-
forts.
‘‘(2) Persons in communities who assist the
military departments in recruiting efforts.
‘‘(3) Military or civilian personnel whose attend-
ance at such functions is mandatory.
‘‘(4) Other persons whose presence at recruiting
functions will contribute to recruiting efforts.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘520c. Recruiting functions: use of funds.’’.
SEC. 1035. AUTHORITY FOR AWARD OF MEDAL OF HONOR
TO CERTAIN AFRICAN AMERICAN SOLDIERS
WHO SERVED DURING WORLD WAR II.
(a) INAPPLICABILITY OF TIME LIMITATIONS.—Not-
withstanding the time limitations in section 3744(b) of
title 10, United States Code, or any other time limitation,
the President may award the Medal of Honor to the per-
sons specified in subsection (b), each of whom has been
found by the Secretary of the Army to have distinguished
himself conspicuously by gallantry and intrepidity at the
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risk of his life above and beyond the call of duty while
serving in the United States Army during World War II.
(b) PERSONS ELIGIBLE TO RECEIVE THE MEDAL OF
HONOR.—The persons referred to in subsection (a) are
the following:
(1) Vernon J. Baker, who served as a first lieu-
tenant in the 370th Infantry Regiment, 92nd Infan-
try Division.
(2) Edward A. Carter, who served as a staff
sergeant in the 56th Armored Infantry Battalion,
Twelfth Armored Division.
(3) John R. Fox, who served as a first lieuten-
ant in the 366th Infantry Regiment, 92nd Infantry
Division.
(4) Willy F. James, Jr., who served as a private
first class in 413th Infantry Regiment, 104th Infan-
try Division.
(5) Ruben Rivers, who served as a staff ser-
geant in the 761st Tank Battalion.
(6) Charles L. Thomas, who served as a first
lieutenant in the 614th Tank Destroyer Battalion.
(7) George Watson, who served as a private in
the 29th Quartermaster Regiment.
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(c) POSTHUMOUS AWARD.—The Medal of Honor may
be awarded under this section posthumously, as provided
in section 3752 of title 10, United States Code.
(d) PRIOR AWARD.—The Medal of Honor may be
awarded under this section for service for which a Distin-
guished-Service Cross, or other award, has been awarded.
SEC. 1036. COMPENSATION FOR PERSONS AWARDED PRIS-
ONER OF WAR MEDAL WHO DID NOT PRE-
VIOUSLY 
RECEIVE 
COMPENSATION 
AS 
A
PRISONER OF WAR.
(a) AUTHORITY TO MAKE PAYMENTS.—The Sec-
retary of the military department concerned shall make
payments in the manner provided in section 6 of the War
Claims Act of 1948 (50 U.S.C. App. 2005) to (or on be-
half of) any person described in subsection (b) who sub-
mits an application for such payment in accordance with
subsection (d).
(b) ELIGIBLE PERSONS.—This section applies with
respect to a member or former member of the Armed
Forces who—
(1) has received the prisoner of war medal
under section 1128 of title 10, United States Code;
and
(2) has not previously received a payment under
section 6 of the War Claims Act of 1948 (50 U.S.C.
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App. 2005) with respect to the period of internment
for which the person received the prisoner of war
medal.
(c) AMOUNT OF PAYMENT.—The amount of the pay-
ment to any person under this section shall be determined
based upon the provisions of section 6 of the War Claims
Act of 1948 that are applicable with respect to the period
of time during which the internment occurred for which
the person received the prisoner of war medal.
(d) ONE-YEAR PERIOD FOR SUBMISSION OF APPLI-
CATIONS.—A payment may be made by reason of this sec-
tion only in the case of a person who submits an applica-
tion to the Secretary concerned for such payment during
the one-year period beginning on the date of the enact-
ment of this Act. Any such application shall be submitted
in such form and manner as the Secretary may require.
SEC. 1037. GEORGE C. MARSHALL EUROPEAN CENTER FOR
STRATEGIC SECURITY STUDIES.
(a) ACCEPTANCE
OF CONTRIBUTIONS.—The Sec-
retary of Defense may accept, on behalf of the George C.
Marshall European Center for Security Studies, from any
foreign nation any contribution of money or services made
by such nation to defray the cost of, or enhance the oper-
ations of, the George C. Marshall European Center for
Security Studies. Such contributions may include guest
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lecturers, faculty services, research materials, and other
donations through foundations or similar sources.
(b) NOTICE TO CONGRESS.—The Secretary of De-
fense shall notify Congress if total contributions of money
under subsection (a) exceed $2,000,000 in any fiscal year.
Any such notice shall list the nations and the amounts
of each such contribution.
(c) MARSHALL CENTER ATTENDANCE AND REPORT-
ING REQUIREMENT.—(1) The Secretary of Defense may
authorize participation by a European or Eurasian nation
in Marshall Center programs if—
(A) the Secretary determines, after consultation
with the Secretary of State, that such participation
is in the national interest of the United States; and
(B) the Secretary determines that such partici-
pation (notwithstanding any other provision of law)
by that nation in Marshall Center programs will ma-
terially contribute to the reform of the electoral
process or development of democratic institutions or
democratic political parties in that nation.
(2) The Secretary of Defense shall notify Congress
of such determination not less than 90 days in advance
of any such participation by such nation pursuant to the
determination concerning that nation.
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(3) The Secretary of Defense shall submit to Con-
gress an annual report on the participation of European
and Eurasian nations in programs of the Marshall Center.
(d) MARSHALL CENTER BOARD OF VISITORS.—(1)
In the case of any United States citizen invited to serve
without compensation on the Marshall Center Board of
Visitors, the Secretary of Defense may waive any require-
ment for financial disclosure that would otherwise be ap-
plicable to that person by reason of service on such Board
of Visitors.
(2) Notwithstanding section 219 of title 18, United
States Code, a non-United States citizen may serve on the
Board even though registered as a foreign agent.
SEC. 1038. PARTICIPATION OF MEMBERS, DEPENDENTS,
AND OTHER PERSONS IN CRIME PREVENTION
EFFORTS AT INSTALLATIONS.
(a) CRIME PREVENTION.—The Secretary of Defense
shall prescribe regulations intended to require members of
the Armed Forces, dependents of members, civilian em-
ployees of the Department of Defense, and employees of
defense contractors performing work at military installa-
tions to report to an appropriate military law enforcement
agency any crime or criminal activity that the person rea-
sonably believes occurred on a military installation.
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(b) SANCTIONS.—As part of the regulations, the Sec-
retary shall consider the feasibility of imposing sanctions
against a person described in subsection (a), particularly
a member of the Armed Forces, who fails to report the
occurrence of a crime or criminal activity as required by
the regulations.
(c) REPORT REGARDING IMPLEMENTATION.—Not
later than February 1, 1997, the Secretary shall submit
to Congress a report describing the plans of the Secretary
to implement this section.
SEC. 1039. TECHNICAL AND CLERICAL AMENDMENTS.
(a) CORRECTIONS IN STATUTORY REFERENCES.—
(1) REFERENCE
TO
COMMAND
FORMERLY
KNOWN
AS
THE
NORTH
AMERICAN
AIR
DEFENSE
COMMAND.—Section 162(a) of title 10, United
States Code, is amended by striking out ‘‘North
American Air Defense Command’’ in paragraphs
(1), (2), and (3) and inserting in lieu thereof ‘‘North
American Aerospace Defense Command’’.
(2) REFERENCES TO FORMER NAVAL RECORDS
AND
HISTORY
OFFICE
AND
FUND.—(A) Section
7222 of title 10, United States Code, is amended in
subsections (a) and (c) by striking out ‘‘Office of
Naval Records and History’’ each place it appears
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and inserting in lieu thereof ‘‘Naval Historical Cen-
ter’’.
(B)(i) The heading of such section is amended
to read as follows:
‘‘§ 7222. Naval Historical Center Fund’’.
(ii) The item relating to such section in the
table of sections at the beginning of chapter 631 of
title 10, United States Code, is amended to read as
follows:
‘‘7222. Naval Historical Center Fund.’’.
(C) Section 2055(g) of the Internal Revenue
Code of 1986 is amended by striking out paragraph
(4) and inserting in lieu thereof the following:
‘‘(4) For treatment of gifts and bequests for the
benefit of the Naval Historical Center as gifts or be-
quests to or for the use of the United States, see sec-
tion 7222 of title 10, United States Code.’’.
(3) CHEMICAL
DEMILITARIZATION
CITIZENS
ADVISORY COMMISSIONS.—Section 172 of the Na-
tional Defense Authorization Act for Fiscal Year
1993 (Public Law 102–484; 106 Stat. 2341; 50
U.S.C. 1521 note) is amended by striking out ‘‘As-
sistant Secretary of the Army (Installations, Logis-
tics, and Environment)’’ in subsections (b) and (f)
and inserting in lieu thereof ‘‘Assistant Secretary of
the Army (Research, Development and Acquisi-
tion)’’.
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(b) MISCELLANEOUS AMENDMENTS TO TITLE 10,
United States Code.—Title 10, United States Code, is
amended as follows:
(1) Section 129(a) is amended by striking out
‘‘the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1996’’ and insert-
ing in lieu thereof ‘‘February 10, 1996,’’.
(2) Section 401 is amended—
(A) in subsection (a)(4), by striking out
‘‘Armed Forces’’ both places it appears and in-
serting in lieu thereof ‘‘armed forces’’; and
(B) in subsection (e), by inserting ‘‘any of
the following’’ after ‘‘means’’.
(3) Section 528(b) is amended by striking out
‘‘(1)’’ after ‘‘(b)’’ and inserting ‘‘(1)’’ before ‘‘The
limitation’’.
(4) Section 1078a(a) is amended by striking
out ‘‘Beginning on October 1, 1994, the’’ and insert-
ing in lieu thereof ‘‘The’’.
(5) Section 1161(b)(2) is amended by striking
out ‘‘section 1178’’ and inserting in lieu thereof
‘‘section 1167’’.
(6) Section 1167 is amended by striking out
‘‘person’’ and inserting in lieu thereof ‘‘member’’.
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(7) The table of sections at the beginning of
chapter 81 is amended by striking out ‘‘Sec.’’ in the
item relating to section 1599a.
(8) Section 1588(d)(1)(C) is amended by strik-
ing out ‘‘Section 522a’’ and inserting in lieu thereof
‘‘Section 552a’’.
(9) Chapter 87 is amended—
(A) in section 1723(a), by striking out the
second sentence;
(B) in section 1724, by striking out ‘‘, be-
ginning on October 1, 1993,’’ in subsections (a)
and (b);
(C) in section 1733(a), by striking out ‘‘On
and after October 1, 1993, a’’ and inserting in
lieu thereof ‘‘A’’; and
(D) in section 1734—
(i) in subsection (a)(1), by striking
out ‘‘, on and after October 1, 1993,’’; and
(ii) in subsection (b)(1)(A), by strik-
ing out ‘‘, on and after October 1, 1991,’’.
(10) Section 2216, as added by section 371 of
the National Defense Authorization Act for Fiscal
Year 1996 (Public Law 104–106; 107 Stat. 277), is
redesignated as section 2216a, and the item relating
to that section in the table of sections at the begin-
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ning of chapter 131 is revised so as to reflect such
redesignation.
(11) Section 2305(b)(6) is amended—
(A) in subparagraph (B), by striking out
‘‘of this section’’ and ‘‘of this paragraph’’;
(B) in subparagraph (C), by striking out
‘‘this subsection’’ and inserting in lieu thereof
‘‘subparagraph (A)’’; and
(C) in subparagraph (D), by striking out
‘‘pursuant to this subsection’’ and inserting in
lieu thereof ‘‘under subparagraph (A)’’.
(12) Section 2306a(h)(3) is amended by insert-
ing ‘‘(41 U.S.C. 403(12))’’ before the period at the
end.
(13) Section 2323a(a) is amended by striking
out ‘‘section 1207 of the National Defense Author-
ization Act for Fiscal Year 1987 (10 U.S.C. 2301
note)’’ and inserting in lieu thereof ‘‘section 2323 of
this title’’.
(14) Section 2534(c)(4) is amended by striking
out ‘‘the date occurring two years after the date of
the enactment of the National Defense Authoriza-
tion Act for Fiscal Year 1996’’ and inserting in lieu
thereof ‘‘February 10, 1998’’.
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(15) The table of sections at the beginning of
chapter 155 is amended by striking out the item re-
lating to section 2609.
(16) Section 2610(e) is amended by striking
out ‘‘two years after the date of the enactment of
the National Defense Authorization Act for Fiscal
Year 1996’’ and inserting in lieu thereof ‘‘on Feb-
ruary 10, 1998’’.
(17) Sections 2824(c) and 2826(i)(1) are
amended by striking out ‘‘the date of the enactment
of the National Defense Authorization Act for Fiscal
Year 1996’’ and inserting in lieu thereof ‘‘February
10, 1996’’.
(18) Section 3036(d) is amended by striking
out ‘‘For purposes of this subsection,’’ and inserting
in lieu thereof ‘‘In this subsection,’’.
(19) The table of sections at the beginning of
chapter 641 is amended by striking out the item re-
lating to section 7434.
(20) Section 10542(b)(21) is amended by strik-
ing out ‘‘261’’ and inserting in lieu thereof ‘‘12001’’.
(21) Section 12205(a) is amended by striking
out ‘‘After September 30, 1995, no person’’ and in-
serting in lieu thereof ‘‘No person’’.
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(c) AMENDMENTS TO PUBLIC LAW 104–106.—The
National Defense Authorization Act for Fiscal Year 1996
(Public Law 104–106; 110 Stat. 186 et seq.) is amended
as follows:
(1) Section 561(d)(1) (110 Stat. 322) is
amended by inserting ‘‘of such title’’ after ‘‘Section
1405(c)’’.
(2) Section 903(e)(1) (110 Stat. 402) is amend-
ed—
(A) in subparagraph (A), by striking out
‘‘paragraphs (6) and (8)’’ and inserting in lieu
thereof ‘‘paragraph (6)’’; and
(B) in subparagraph (B), by inserting
‘‘(8),’’ after ‘‘(7),’’ and by striking out ‘‘and
(9),’’ and inserting in lieu thereof ‘‘(9), and
(10),’’.
(3) Section 1092(b)(2) (110 Stat. 460) is
amended by striking out the period at the end and
inserting in lieu thereof ‘‘; and’’.
(4) Section 4301(a)(1) (110 Stat. 656) is
amended by inserting ‘‘of subsection (a)’’ after ‘‘in
paragraph (2)’’.
(5) Section 5601 (110 Stat. 699) is amended—
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HR 3230 PCS
(A) in subsection (a), by inserting ‘‘of title
10, United States Code,’’ before ‘‘is amended’’;
and
(B) in subsection (c), by striking out ‘‘use
of equipment or services, if’’ in the second
quoted matter therein and inserting in lieu
thereof ‘‘use of the equipment or services’’.
(d) PROVISIONS EXECUTED BEFORE ENACTMENT OF
PUBLIC LAW 104–106.—
(1) Section 533(b) of the National Defense Au-
thorization Act for Fiscal Year 1996 (Public Law
104–106; 110 Stat. 315) shall apply as if enacted as
of December 31, 1995.
(2) The authority provided under section 942(f)
of title 10, United States Code, shall be effective as
if section 1142 of the National Defense Authoriza-
tion Act for Fiscal Year 1996 (Public Law 104–106;
110 Stat. 467) had been enacted on September 29,
1995.
(e) AMENDMENTS TO OTHER ACTS.—
(1) The last section of the Office of Federal
Procurement Policy Act (41 U.S.C. 434), as added
by section 5202 of Public Law 104–106 (110 Stat.
690), is redesignated as section 38, and the item ap-
pearing after section 34 in the table of contents in