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(2) by inserting after paragraph (1) the follow-
ing new paragraph (2):
‘‘(2) EXCEPTION FOR MEMBERS REDUCED IN
GRADE.—Paragraph (1) does not apply in the case
of a member who after serving as the senior enlisted
member of an armed force is reduced in grade as the
result of a court-martial sentence, nonjudicial pun-
ishment, or other administrative process, as deter-
mined by the Secretary concerned.’’.
(b) POST-SEPTEMBER 7, 1980 MEMBERS.—Section
1407 of such title is amended by adding at the end the
following new subsection:
‘‘(f) LIMITATION
FOR ENLISTED MEMBERS RE-
DUCED IN GRADE.—
‘‘(1) BASIC
PAY
DISREGARDED
FOR
GRADES
ABOVE GRADE TO WHICH REDUCTION IN GRADE IS
MADE.—In computing the high-three average of a
retired enlisted member who has been reduced in
grade, the amount of basic pay to which the member
was entitled for any covered pre-reduction month (or
to which the member would have been entitled if
serving on active duty during that month, in the
case of a member entitled to retired under pay under
section 12731 of this title) shall (for the purposes of
such computation) be deemed to be the rate of basic
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pay to which the member would have been entitled
for that month if the member had served on active
duty during that month in the grade to which the
reduction in grade was made.
‘‘(2) DEFINITIONS.—In this subsection:
‘‘(A) RETIRED
ENLISTED
MEMBER
WHO
HAS BEEN REDUCED IN GRADE.—The term ‘re-
tired enlisted member who has been reduced in
grade’ means a member or former member
who—
‘‘(i) retires in an enlisted grade,
transfers to the Fleet Reserve or Fleet Ma-
rine Corps Reserve, or becomes entitled to
retired pay under chapter 12731 after last
serving in an enlisted grade; and
‘‘(ii) had at any time previously been
reduced in grade as the result of a court-
martial sentence, nonjudicial punishment,
or other administrative process, as deter-
mined by the Secretary concerned.
‘‘(B) COVERED
PRE-REDUCTION
MONTH
DEFINED.—The term ‘covered pre-reduction
month’ means, in the case of a retired enlisted
member who has been reduced in grade, a
month of service of the member before the re-
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duction in grade of the member during which
the member served in a grade higher than the
grade to which the reduction in grade was
made.’’.
(c) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply in the case of a member who
is reduced in grade by sentence of a court-martial only
in the case of a court-martial conviction on or after the
date of the enactment of this Act. Subsection (f) of section
1407 of title 10, United States Code, as added by the
amendment made by subsection (b), shall not apply to the
retired or retainer pay of any person who becomes entitled
to that pay before the date of the enactment of this Act.
(d) TECHNICAL AMENDMENT.—Subsection (e) of sec-
tion 1407 of title 10, United States Code, is amended by
striking out ‘‘high-36 average shall be computed’’ and in-
serting in lieu thereof ‘‘high-three average shall be com-
puted under subsection (c)(1)’’.
Subtitle E—Other Matters
SEC. 651. DELETION OF CANAL ZONE FROM DEFINITION OF
UNITED 
STATES 
POSSESSIONS 
FOR 
PUR-
POSES OF PAY AND ALLOWANCES.
Section 101(2) of title 37, United States Code, is
amended by striking ‘‘the Canal Zone,’’.
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SEC. 652. ACCOUNTING OF ADVANCE PAYMENTS.
Section 1006(e) of title 37, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(e)’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) Obligations and expenditures incurred for an ad-
vance payment under this section may not be included in
any determination of amounts available for obligation or
expenditure except in the fiscal year in which the advance
payment is ultimately earned and such obligations and ex-
penditures shall be accounted for only in such fiscal
year.’’.
SEC. 653. REIMBURSEMENT OF RENTAL VEHICLE COSTS
WHEN MOTOR VEHICLE TRANSPORTED AT
GOVERNMENT EXPENSE IS LATE.
(a) 
TRANSPORTATION
IN
CONNECTION
WITH
CHANGE OF PERMANENT STATION.—Section 2634 of title
10, United States Code, is amended—
(1) by redesignating subsection (g) as sub-
section (h); and
(2) by inserting after subsection (f) the follow-
ing new subsection:
‘‘(g) If a motor vehicle of a member (or a dependent
of the member) that is transported at the expense of the
United States under this section does not arrive at the
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authorized destination of the vehicle by the designated de-
livery date, the Secretary concerned shall reimburse the
member for expenses incurred after that date to rent a
motor vehicle for the member’s use, or for the use of the
dependent for whom the delayed vehicle was transported.
However, the amount reimbursed shall not exceed $30 per
day, and the rental period for which reimbursement may
be provided shall expire after seven days or on the date
on which the delayed vehicle finally arrives at the author-
ized destination (whichever occurs first).’’.
(b) TRANSPORTATION IN CONNECTION WITH OTHER
MOVES.—Section 406(h) of title 37, United States Code,
is amended by adding at the end the following new para-
graph:
‘‘(3) If a motor vehicle of a member (or a dependent
of the member) that is transported at the expense of the
United States under this subsection does not arrive at the
authorized destination of the vehicle by the designated de-
livery date, the Secretary concerned shall reimburse the
member for expenses incurred after that date to rent a
motor vehicle for the dependent’s use. However, the
amount reimbursed shall not exceed $30 per day, and the
rental period for which reimbursement may be provided
shall expire after seven days or on the date on which the
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delayed vehicle finally arrives at the authorized destination
(whichever occurs first).’’.
(c) TRANSPORTATION IN CONNECTION WITH DEPAR-
TURE ALLOWANCES FOR DEPENDENTS.—Section 405a(b)
of title 37, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) If a motor vehicle of a member (or a dependent
of the member) that is transported at the expense of the
United States under paragraph (1) does not arrive at the
authorized destination of the vehicle by the designated de-
livery date, the Secretary concerned shall reimburse the
member for expenses incurred after that date to rent a
motor vehicle for the dependent’s use. However, the
amount reimbursed shall not exceed $30 per day, and the
rental period for which reimbursement may be provided
shall expire after seven days or on the date on which the
delayed vehicle finally arrives at the authorized destination
(whichever occurs first).’’.
(d) TRANSPORTATION IN CONNECTION WITH EF-
FECTS OF MISSING PERSONS.—Section 554 of title 37,
United States Code, is amended—
(1) by redesignating subsection (i) as subsection
(j); and
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(2) by inserting after subsection (h) the follow-
ing new subsection:
‘‘(i) If a motor vehicle of a member (or a dependent
of the member) that is transported at the expense of the
United States under this section does not arrive at the
authorized destination of the vehicle by the designated de-
livery date, the Secretary concerned shall reimburse the
dependent for expenses incurred after that date to rent
a motor vehicle for the dependent’s use. However, the
amount reimbursed shall not exceed $30 per day, and the
rental period for which reimbursement may be provided
shall expire after seven days or on the date on which the
delayed vehicle finally arrives at the authorized destination
(whichever occurs first).’’.
(e) APPLICATION
OF AMENDMENTS.—Reimburse-
ment for motor vehicle rental expenses may not be pro-
vided under the amendments made by this section until
after the date on which the Secretary of Defense submits
to Congress a report certifying that the Department of
Defense has in place and operational a system to recover
the cost to the Department of providing such reimburse-
ment from commercial carriers that are responsible for the
delay in the delivery of the motor vehicles of members of
the Armed Forces and their dependents. The amendments
shall apply with respect to rental expenses described in
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such amendments that are incurred on or after the date
of the submission of the report. The report shall be sub-
mitted not later than six months after the date of the en-
actment of this Act and shall include, in addition to the
certification, a description of the system used to recover
from commercial carriers the costs incurred by the De-
partment under such amendments.
SEC. 654. EDUCATION LOAN REPAYMENT PROGRAM FOR
CERTAIN HEALTH PROFESSION OFFICERS
SERVING IN SELECTED RESERVE.
(a) LOAN REPAYMENT AMOUNTS.—Section 16302(c)
of title 10, United States Code, is amended—
(1) in paragraph (2), by striking out ‘‘$3,000’’
and inserting in lieu thereof ‘‘$10,000’’; and
(2) in paragraph (3), by striking out ‘‘$20,000’’
and inserting in lieu thereof ‘‘$50,000’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on October 1, 1998.
TITLE VII—HEALTH CARE
PROVISIONS
Subtitle A—Health Care Services
SEC. 701. EXPANSION OF DEPENDENT ELIGIBILITY UNDER
RETIREE DENTAL PROGRAM.
(a) IN GENERAL.—Subsection (b) of section 1076c
of title 10, United States Code, is amended—
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(1) by redesignating paragraph (4) as para-
graph (5); and
(2) by inserting after paragraph (3) the follow-
ing new paragraph:
‘‘(4) Eligible dependents of a member described
in paragraph (1) or (2) who is not enrolled in the
plan and who—
‘‘(A) is enrolled under section 1705 of title
38 to receive dental care from the Secretary of
Veterans Affairs;
‘‘(B) is enrolled in a dental plan that—
‘‘(i) is available to the member as a
result of employment by the member that
is separate from the military service of the
member; and
‘‘(ii) is not available to dependents of
the member as a result of such separate
employment by the member; or
‘‘(C) is prevented by a medical or dental
condition from being able to obtain benefits
under the plan.’’.
(b) CONFORMING AMENDMENT.—Subsection (f)(3)
of such section is amended by striking out ‘‘(b)(4)’’ and
inserting in lieu thereof ‘‘(b)(5)’’.
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SEC. 702. PLAN FOR PROVISION OF HEALTH CARE FOR
MILITARY RETIREES AND THEIR DEPEND-
ENTS COMPARABLE TO HEALTH CARE PRO-
VIDED UNDER TRICARE PRIME.
(a) REQUIREMENT TO SUBMIT PLAN.—(1) The Sec-
retary of Defense shall submit to Congress—
(A) a plan under which the Secretary would
guarantee access, for covered beneficiaries described
in subsection (b), to health care that is comparable
to the health care provided to covered beneficiaries
under chapter 55 of title 10, United States Code,
under TRICARE Prime (as defined in subsection
(d) of section 1097a of such title (as added by sec-
tion 712)); and
(B) a legislative proposal and cost estimate for
implementing the plan.
(2) The plan required under paragraph (1)(A) shall
provide for guaranteed access to such health care for such
covered beneficiaries by October 1, 2001.
(b) COVERED
BENEFICIARIES.—A covered bene-
ficiary under this subsection is an individual who is a cov-
ered beneficiary under chapter 55 of title 10, United
States Code, who—
(1) is a member or former member of the
Armed Forces entitled to retired pay under such
title; or
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(2) is a dependent (as that term is defined in
section 1072(2) of such chapter) of such a member.
(c) DEADLINE
FOR SUBMISSION.—The Secretary
shall submit the plan required by subsection (a) not later
than March 1, 1999.
SEC. 703. PLAN FOR REDESIGN OF MILITARY PHARMACY
SYSTEM.
(a) PLAN REQUIRED.—The Secretary of Defense
shall submit to Congress a plan that would provide for
a system-wide redesign of the military and contractor re-
tail and mail-order pharmacy system of the Department
of Defense by incorporating ‘‘best business practices’’ of
the private sector. The Secretary shall work with contrac-
tors of TRICARE retail pharmacy and national mail-order
pharmacy programs to develop a plan for the redesign of
the pharmacy system that—
(1) may include a plan for an incentive-based
formulary for military medical treatment facilities
and contractors of TRICARE retail pharmacies and
the national mail-order pharmacy; and
(2) shall include a plan for each of the follow-
ing:
(A) A uniform formulary for such facilities
and contractors.
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(B) A centralized database that integrates
the patient databases of pharmacies of military
medical treatment facilities and contractor re-
tail and mail-order programs to implement
automated prospective drug utilization review
systems.
(C) A system-wide drug benefit for covered
beneficiaries under chapter 55 of title 10,
United States Code, who are entitled to hospital
insurance benefits under part A of title XVIII
of the Social Security Act (42 U.S.C. 1395c et
seq.).
(b) SUBMISSION OF PLAN.—The Secretary shall sub-
mit the plan required under subsection (a) not later than
March 1, 1999.
(c) SUSPENSION
OF IMPLEMENTATION
OF PRO-
GRAM.—The Secretary shall suspend any plan to establish
a national retail pharmacy program for the Department
of Defense until—
(1) the plan required under subsection (a) is
submitted; and
(2) the Secretary implements cost-saving re-
forms with respect to the military and contractor re-
tail and mail order pharmacy system.
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SEC. 704. TRANSITIONAL AUTHORITY TO PROVIDE CONTIN-
UED HEALTH CARE COVERAGE FOR CERTAIN
PERSONS UNAWARE OF LOSS OF CHAMPUS
ELIGIBILITY.
(a) TRANSITIONAL COVERAGE.—The administering
Secretaries may continue eligibility of a person described
in subsection (b) for health care coverage under the Civil-
ian Health and Medical Program of the Uniformed Serv-
ices based on a determination that such continuation is
appropriate to assure health care coverage for any such
person who may have been unaware of the loss of eligi-
bility to receive health benefits under that program.
(b) PERSONS ELIGIBLE.—A person shall be eligible
for transitional health care coverage under subsection (a)
if the person—
(1) is a person described in paragraph (1) of
subsection (d) of section 1086 of title 10, United
States Code;
(2) in the absence of such paragraph, would be
eligible for health benefits under such section; and
(3) satisfies the criteria specified in subpara-
graphs (A) and (B) of paragraph (2) of such sub-
section.
(c) EXTENT OF TRANSITIONAL AUTHORITY.—The
authority to continue eligibility under this section shall
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apply with respect to health care services provided between
October 1, 1998, and July 1, 1999.
(d) DEFINITION.—In this section, the term ‘‘admin-
istering Secretaries’’ has the meaning given that term in
section 1072(3) of title 10, United States Code.
Subtitle B—TRICARE Program
SEC. 711. PAYMENT OF CLAIMS FOR PROVISION OF HEALTH
CARE UNDER THE TRICARE PROGRAM FOR
WHICH A THIRD PARTY MAY BE LIABLE.
(a) IN GENERAL.—(1) Chapter 55 of title 10, United
States Code, is amended by inserting after section 1095a
the following new section:
‘‘§ 1095b. TRICARE program: contractor payment of
certain claims
‘‘(a) PAYMENT OF CLAIMS.—(1) The Secretary of
Defense may authorize a contractor under the TRICARE
program to pay a claim described in paragraph (2) before
seeking to recover from a third-party payer the costs in-
curred by the contractor to provide health care services
that are the basis of the claim to a beneficiary under such
program.
‘‘(2) A claim under this paragraph is a claim—
‘‘(A) that is submitted to the contractor by a
provider under the TRICARE program for payment
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for services for health care provided to a covered
beneficiary; and
‘‘(B) that is identified by the contractor as a
claim for which a third-party payer may be liable.
‘‘(b) RECOVERY FROM THIRD-PARTY PAYERS.—A
contractor for the provision of health care services under
the TRICARE program that pays a claim described in
subsection (a)(2) shall have the right to collect from the
third-party payer the costs incurred by such contractor on
behalf of the covered beneficiary. The contractor shall
have the same right to collect such costs under this sub-
section as the right of the United States to collect costs
under section 1095 of this title.
‘‘(c) DEFINITION OF THIRD-PARTY PAYER.—In this
section, the term ‘third-party payer’ has the meaning
given that term in section 1095(h) of this title, except that
such term excludes primary medical insurers.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 1095a the following new
item:
‘‘1095b. TRICARE program: contractor payment of certain claims.’’.
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SEC. 712. PROCEDURES REGARDING ENROLLMENT IN
TRICARE PRIME.
(a) IN GENERAL.—(1) Chapter 55 of title 10, United
States Code, is amended by inserting after section 1097
the following new section:
‘‘§ 1097a. Enrollment in TRICARE Prime: procedures
‘‘(a) AUTOMATIC ENROLLMENT
OF CERTAIN DE-
PENDENTS.—The Secretary of Defense shall establish pro-
cedures under which dependents of members of the armed
forces on active duty who reside in the catchment area
of a military medical treatment facility shall be automati-
cally enrolled in TRICARE Prime at the military medical
treatment facility. The Secretary shall provide notice in
writing to the member regarding such enrollment.
‘‘(b) AUTOMATIC
CONTINUATION
OF
ENROLL-
MENT.—The Secretary of Defense shall establish proce-
dures under which enrollment of covered beneficiaries in
TRICARE Prime shall automatically continue until such
time as the covered beneficiary elects to disenroll or is no
longer eligible for enrollment.
‘‘(c) OPTION FOR RETIREES TO DEDUCT FEE FROM
PAY.—The Secretary of Defense shall establish proce-
dures under which a retired member of the armed forces
may elect to have any fees payable by the member for en-
rollment in TRICARE Prime withheld from the retired
pay of the member (if pay is available to the member).
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‘‘(d) DEFINITION OF TRICARE PRIME.—In this sec-
tion, the term ‘TRICARE Prime’ means the managed care
option of the TRICARE program known as TRICARE
Prime.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1097 the following new item:
‘‘1097a. Enrollment in TRICARE Prime: procedures.’’.
(b) DEADLINE
FOR IMPLEMENTATION.—The Sec-
retary of Defense shall establish the procedures required
under section 1097a of title 10, United States Code, as
added by subsection (a), not later than April 1, 1999.
Subtitle C—Other Matters
SEC. 721. INFLATION ADJUSTMENT OF PREMIUM AMOUNTS
FOR DEPENDENTS DENTAL PROGRAM.
Section 1076a(b)(2) of title 10, United States Code,
is amended by inserting after ‘‘$20 per month’’ the follow-
ing: ‘‘(in 1993 dollars, as adjusted for inflation in each
year thereafter)’’.
SEC. 722. SYSTEM FOR TRACKING DATA AND MEASURING
PERFORMANCE IN MEETING TRICARE AC-
CESS STANDARDS.
(a) REQUIREMENT TO ESTABLISH SYSTEM.—(1)
The Secretary of Defense shall establish a system—
(A) to track data regarding access of covered
beneficiaries under chapter 55 of title 10, United
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States Code, to primary health care under the
TRICARE program; and
(B) to measure performance in increasing such
access against the primary care access standards es-
tablished by the Secretary under the TRICARE pro-
gram.
(2) In implementing the system described in para-
graph (1), the Secretary shall collect data on the timeli-
ness of appointments and precise waiting times for ap-
pointments in order to measure performance in meeting
the primary care access standards established under the
TRICARE program.
(b) DEADLINE
FOR ESTABLISHMENT.—The Sec-
retary shall establish the system described in subsection
(a) not later than April 1, 1999.
SEC. 723. AIR FORCE RESEARCH, DEVELOPMENT, TRAIN-
ING, AND EDUCATION ON EXPOSURE TO
CHEMICAL, BIOLOGICAL, AND RADIOLOGICAL
HAZARDS.
(a) IN GENERAL.—The Secretary of the Air Force
is hereby authorized to—
(1) conduct research on the health-related, envi-
ronmental, and ecological effects of exposure to
chemical, biological, and radiological hazards;
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(2) develop new risk-assessment methods and
instruments with respect to exposure to such haz-
ards, including more accurate risk assessment tools
to support the Air Force Enhanced Site Specific
Risk Assessment; and
(3) educate and train researchers with respect
to exposure to such hazards.
(b) ACTIVITIES TO BE CONDUCTED.—Research and
development conducted under subsection (a) includes—
(1) development of equipment to monitor soil
and ground water contamination and the impact of
such contamination on the biosystem chain;
(2) implementation of a cross-sectional epide-
miological study of exposure to jet fuel; and
(3) implementation of a health-risk assessment
regarding exposure to jet fuel.
SEC. 724. AUTHORIZATION TO ESTABLISH A LEVEL 1 TRAU-
MA TRAINING CENTER.
The Secretary of the Army is hereby authorized to
establish a Level 1 Trauma Training Center (as des-
ignated by the American College of Surgeons) in order to
provide the Army with a trauma center capable of training
forward surgical teams.
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SEC. 725. REPORT ON IMPLEMENTATION OF ENROLLMENT-
BASED CAPITATION FOR FUNDING FOR MILI-
TARY MEDICAL TREATMENT FACILITIES.
(a) REPORT REQUIRED.—The Secretary of Defense
shall submit to Congress a report on the potential impact
of using an enrollment-based capitation methodology to al-
locate funds for military medical treatment facilities. The
report shall address the following:
(1) A description of the plans of the Secretary
to implement an enrollment-based capitation meth-
odology for military medical treatment facilities and
with respect to contracts for the delivery of health
care under the TRICARE program.
(2) The justifications for implementing an en-
rollment-based capitation methodology without first
conducting a demonstration project for implementa-
tion of such methodology.
(3) The impact that implementation of an en-
rollment based capitation methodology would have
on the provision of space-available care at military
medical treatment facilities, particularly in the case
of care for—
(A) military retirees entitled who are enti-
tled to hospital insurance benefits under part A
of title XVIII of the Social Security Act (42
U.S.C. 1395c et seq.); and
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(B) covered beneficiaries under chapter 55
of title 10, United States Code, who reside out-
side the catchment area of a military medical
treatment facility.
(4) The impact that implementation of an en-
rollment-based capitation methodology would have
with respect to the pharmacy benefits provided at
military medical treatment facilities, given that the
enrollment-based capitation methodology would fund
military medical treatment facilities based on the
number of members at such facilities enrolled in
TRICARE Prime, but all covered beneficiaries may
fill prescriptions at military medical treatment facil-
ity pharmacies.
(5) An explanation of how additional funding
will be provided for a military medical treatment fa-
cility if an enrollment-based capitation methodology
is implemented to ensure that space-available care
and pharmacy coverage can be provided to covered
beneficiaries who are not enrolled at the military
medical treatment facility, and the amount of fund-
ing that will be available.
(6) An explanation of how implementation of an
enrollment-based capitation methodology would im-
pact the provision of uniform benefits under
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TRICARE Prime, and how the Secretary would en-
sure, if such methodology were implemented, that
the provision of health care under TRICARE Prime
would not be bifurcated between the provision of
such care at military medical treatment facilities and
the provision of such care from civilian providers.
(b) DEADLINE
FOR SUBMISSION.—The Secretary
shall submit the report required by subsection (a) not later
than March 1, 1999.
SEC. 726. REQUIREMENT THAT MILITARY PHYSICIANS POS-
SESS UNRESTRICTED LICENSES.
(a) IN GENERAL.—Section 1094(a) of title 10,
United States Code, is amended by adding at the end the
following new paragraph:
‘‘(3) In the case of a physician under the jurisdiction
of the Secretary of a military department, such physician
may not provide health care as a physician under this
chapter unless the current license of the physician is an
unrestricted license which is not subject to limitation on
the scope of practice ordinarily granted to other physicians
for a similar specialty by the jurisdiction that granted the
license.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the date of the enact-
ment of this Act.
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SEC. 727. ESTABLISHMENT OF MECHANISM FOR ENSURING
COMPLETION BY MILITARY PHYSICIANS OF
CONTINUING 
MEDICAL 
EDUCATION 
RE-
QUIREMENTS.
(a) IN GENERAL.—(1) Chapter 55 of title 10, United
States Code, is amended by inserting after section 1094
the following new section:
‘‘§ 1094a. Mechanism for monitoring of completion of
Continuing Medical Education require-
ments
‘‘The Secretary of Defense shall establish a mecha-
nism for the purpose of ensuring that each person under
the jurisdiction of the Secretary of a military department
who provides health care under this chapter as a physician
completes the Continuing Medical Education requirements
applicable to the physician.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘1094a. Mechanism for monitoring of completion of Continuing Medical Edu-
cation requirements.’’.
(b) EFFECTIVE DATE.—Section 1094a of title 10,
United States Code, as added by subsection (a), shall take
effect on the date that is three years after the date of
the enactment of this Act.
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SEC. 728. PROPOSAL ON ESTABLISHMENT OF APPEALS
PROCESS FOR CLAIMCHECK DENIALS AND
REVIEW OF CLAIMCHECK SYSTEM.
Not later than November 1, 1998, the Secretary of
Defense shall submit to Congress a proposal to establish
an appeals process in cases of denials through the
ClaimCheck computer software system of claims by civil-
ian providers for payment for health care services provided
under the TRICARE program.
SEC. 729. DEMONSTRATION PROJECT TO INCLUDE CER-
TAIN COVERED BENEFICIARIES WITHIN FED-
ERAL EMPLOYEES HEALTH BENEFITS PRO-
GRAM.
(a) DEMONSTRATION PROJECT.—(1) Chapter 55 of
title 10, United States Code, is amended by adding at the
end the following new section:
‘‘§ 1108. Health care coverage through Federal Em-
ployees Health Benefits program: dem-
onstration project
‘‘(a) FEHBP OPTION DEMONSTRATION.—The Sec-
retary of Defense, after consulting with the other admin-
istering Secretaries, shall enter into an agreement with the
Office of Personnel Management to conduct a demonstra-
tion project under which not more than 70,000 eligible
covered beneficiaries described in subsection (b) and resid-
ing within one of the areas covered by the demonstration
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project may be enrolled in health benefits plans offered
through the Federal Employees Health Benefits program
under chapter 89 of title 5, United States Code.
‘‘(b) ELIGIBLE COVERED BENEFICIARIES.—(1) An
eligible covered beneficiary under this subsection is—
‘‘(A) a member or former member of the uni-
formed services described in section 1074(b) of this
title who is entitled to hospital insurance benefits
under part A of title XVIII of the Social Security
Act (42 U.S.C. 1395c et seq.);
‘‘(B) a dependent of such a member described
in section 1076(b) or 1076(a)(2)(B) of this title;
‘‘(C) a dependent of a member of the uniformed
services who died while on active duty for a period
of more than 30 days; or
‘‘(D) a dependent described in section 1076(b)
or 1076(a)(2)(B) of this title who is entitled to hos-
pital insurance benefits under part A of title XVIII
of the Social Security Act, regardless of the mem-
ber’s or former member’s eligibility for such hospital
insurance benefits.
‘‘(2) A covered beneficiary described in paragraph (1)
shall not be required to satisfy any eligibility criteria speci-
fied in chapter 89 of title 5 as a condition for enrollment
in health benefits plans offered through the Federal Em-
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ployee Health Benefits program under the demonstration
project.
‘‘(3) Covered beneficiaries who are eligible to enroll
in the Federal Employment Health Benefits program
under chapter 89 of title 5 as a result of civil service em-
ployment with the United States Government shall not be
eligible to enroll in a Federal Employees Health Benefits
plan under this section.
‘‘(c) AREA OF DEMONSTRATION PROJECT.—The Sec-
retary of Defense and the Director of the Office of Person-
nel Management shall jointly identify and select the geo-
graphic areas in which the demonstration project will be
conducted. The Secretary and the Director shall establish
at least six, but not more than ten, such demonstration
areas. In establishing the areas, the Secretary and Direc-
tor shall include—
‘‘(1) a site that includes the catchment area of
one or more military medical treatment facilities;
‘‘(2) a site that is not located in the catchment
area of a military medical treatment facility;
‘‘(3) a site at which there is a military medical
treatment facility that is a Medicare Subvention
Demonstration project site under section 1896 of
title XVIII of the Social Security Act (42 U.S.C.
1395 et seq.); and
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‘‘(4) not more than one site for each TRICARE
region.
‘‘(d) TIME
FOR DEMONSTRATION PROJECT.—(1)
The Secretary of Defense shall conduct the demonstration
project during three contract years under the Federal Em-
ployees Health Benefits program.
‘‘(2) Eligible covered beneficiaries shall, as provided
under the agreement pursuant to subsection (a), be per-
mitted to enroll in the demonstration project during the
open season for the year 2000 (conducted in the fall of
1999). The demonstration project shall terminate on De-
cember 31, 2002.
‘‘(e) PROHIBITION AGAINST USE OF MTFS.—Eligi-
ble covered beneficiaries who participate in the demonstra-
tion project shall not be eligible to receive care at a mili-
tary medical treatment facility.
‘‘(f) TERM OF ENROLLMENT.—(1) The minimum pe-
riod of enrollment in a Federal Employees Health Benefits
plan under this section shall be three years.
‘‘(2) A beneficiary who elects to enroll in such a plan,
and who subsequently discontinues enrollment in the plan
before the end of the period described in paragraph (1),
shall not be eligible to reenroll in the plan.
‘‘(3) An eligible beneficiary enrolled in a Federal Em-
ployees Health Benefits plan under this section may
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change plans during the open enrollment period in the
same manner as any other Federal Employees Health
Benefits program beneficiary may change plans.
‘‘(g) SEPARATE RISK POOLS; CHARGES.—(1) The
Office of Personnel Management shall require health bene-
fits plans under chapter 89 of title 5 that participate in
the demonstration project to maintain a separate risk pool
for purposes of establishing premium rates for covered
beneficiaries who enroll in such a plan in accordance with
this section.
‘‘(2) The Office shall determine total subscription
charges for self only or for family coverage for covered
beneficiaries who enroll in a health benefits plan under
chapter 89 of title 5 in accordance with this section, which
shall include premium charges paid to the plan and
amounts described in section 8906(c) of title 5 for admin-
istrative expenses and contingency reserves.
‘‘(h) GOVERNMENT CONTRIBUTIONS.—The Secretary
of Defense shall be responsible for the Government con-
tribution for an eligible covered beneficiary who enrolls in
a health benefits plan under chapter 89 of title 5 in ac-
cordance with this section, except that the amount of the
contribution may not exceed the amount of the Govern-
ment contribution which would be payable if the electing
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‘‘(H) an examination of the effects that the
demonstration project, if made permanent, would be
expected to have on the overall budget of the De-
partment of Defense, the budget of the Office of
Personnel and Management, and the budgets of in-
dividual military medical treatment facilities;
‘‘(I) an analysis of whether the demonstration
project affects the cost to the Department of De-
fense of prescription drugs or the accessibility, avail-
ability, and cost of such drugs to covered bene-
ficiaries;
‘‘(J) a description of any additional information
that the Secretary of Defense or the Director of the
Office of Personnel Management deem appropriate
and that would assist Congress in determining the
viability of expanding the project to all Medicare-eli-
gible members of the uniformed services and their
dependents; and
‘‘(K) recommendations on whether covered
beneficiaries—
‘‘(i) should be given more than one chance
to enroll in a Federal Employees Health Bene-
fits plan under this section;
‘‘(ii) should be eligible to enroll in such a
plan only during the first year following the
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date that the covered beneficiary becomes eligi-
ble to receive hospital insurance benefits under
title XVIII of the Social Security Act; or
‘‘(iii) should be eligible to enroll in the plan
only during the two-year period following the
date on which the beneficiary first becomes eli-
gible to enroll in a Federal Employees Health
Benefits plan under this section.
‘‘(k) COMPTROLLER GENERAL REPORT.—Not later
than 39 months after the Secretary begins to implement
the demonstration project, the Comptroller General shall
submit to Congress a report examining the same criteria
required to be examined under subsection (j)(2).’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘1108. Health care coverage through Federal Employees Health Benefits pro-
gram: demonstration project.’’.
(b) CONFORMING AMENDMENTS.—Chapter 89 of
title 5, United States Code, is amended—
(1) in section 8905—
(A) 
by 
redesignating 
subsections 
(d)
through (f) as subsections (e) through (g), re-
spectively; and
(B) by inserting after subsection (c) the
following new subsection:
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‘‘(d) An individual whom the Secretary of Defense de-
termines is an eligible covered beneficiary under sub-
section (b) of section 1108 of title 10 may enroll, as part
of the demonstration project under such section, in a
health benefits plan under this chapter in accordance with
the agreement under subsection (a) of such section be-
tween the Secretary and the Office and applicable regula-
tions under this chapter.’’;
(2) in section 8906(b)—
(A) in paragraph (1), by striking ‘‘para-
graphs (2) and (3)’’ and inserting in lieu there-
of ‘‘paragraphs (2), (3), and (4)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(4) In the case of individuals who enroll, as part
of the demonstration project under section 1108 of title
10, in a health benefits plan in accordance with section
8905(d) of this title, the Government contribution shall
be determined in accordance with section 1108(h) of title
10.’’; and
(3) in section 8906(g)—
(A) in paragraph (1), by striking ‘‘para-
graph (2)’’ and inserting in lieu thereof ‘‘para-
graphs (2) and (3)’’; and
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(B) by adding at the end the following new
paragraph:
‘‘(3) The Government contribution described in sub-
section (b)(4) for beneficiaries who enroll, as part of the
demonstration project under section 1108 of title 10, in
accordance with section 8905(d) of this title shall be paid
as provided in section 1108(h) of title 10.’’.
(c) DISPOSAL OF NATIONAL DEFENSE STOCKPILE
MATERIALS TO OFFSET COSTS.—
(1) DISPOSAL
REQUIRED.—Subject to para-
graphs (2) and (3), the President shall dispose of
materials contained in the National Defense Stock-
pile and specified in the table in subsection (b) so
as to result in receipts to the United States in
amounts equal to—
(A) $89,000,000 during fiscal year 1999;
(B) $104,000,000 during fiscal year 2000;
(C) $95,000,000 during fiscal year 2001;
and
(D) $72,000,000 during fiscal year 2002.
(2) LIMITATION ON DISPOSAL QUANTITY.—The
total quantities of materials authorized for disposal
by the President under paragraph (1) may not ex-
ceed the amounts set forth in the following table:
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Authorized Stockpile Disposals
Material for disposal
Quantity
Chromium Ferroally Low Carbons .........................................
92,000 short tons
Diamond Stones .....................................................................
3,000,000 carats
Palladium ...............................................................................
1,227,831 troy ounces
Platinum .................................................................................
439,887 troy ounces
(3) 
MINIMIZATION
OF
DISRUPTION
AND
LOSS.—The President may not dispose of materials
under paragraph (1) to the extent that the disposal
will result in—
(A) undue disruption of the usual markets
of producers, processors, and consumers of the
materials proposed for disposal; or
(B) avoidable loss to the United States.
(4) TREATMENT OF RECEIPTS.—Notwithstand-
ing section 9 of the Strategic and Critical Materials
Stock Piling Act (50 U.S.C. 98h), funds received as
a result of the disposal of materials under paragraph
(1) shall be—
(A) deposited into the general fund of the
Treasury; and
(B) used to offset the revenues that will be
lost as a result of the implementation of the
demonstration project under section 1108 of
title 10, United States Code (as added by sub-
section (a)).
(5) RELATIONSHIP
TO
OTHER
DISPOSAL
AU-
THORITY.—The disposal authority provided in para-
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graph (1) is new disposal authority and is in addi-
tion to, and shall not affect, any other disposal au-
thority provided by law regarding materials specified
in the table in paragraph (2).
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
SEC. 801. LIMITATION ON PROCUREMENT OF AMMUNITION
AND COMPONENTS.
(a) LIMITATION.—Section 2534(a) of title 10, United
States Code, is amended by adding at the end the follow-
ing new paragraph:
‘‘(6) AMMUNITION.—Ammunition or ammuni-
tion components.’’.
(b) EFFECTIVE DATE.—Paragraph (6) of section
2534(a) of title 10, United States Code, as added by sub-
section (a), shall apply with respect to contracts entered
into after September 30, 1998.
SEC. 802. ACQUISITION CORPS ELIGIBILITY.
Section 1732(c) of title 10, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(3) The requirement of subsection (b)(1)(A) shall
not apply to an employee who served in an Acquisition
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Corps in a position within grade GS–13 or above of the
General Schedule and who is placed in another position
which is in a grade lower than GS–13 of the General
Schedule, or whose position is reduced in grade to a grade
lower than GS–13 of the General Schedule, as a result
of reduction-in-force procedures, the realignment or clo-
sure of a military installation, or another reason other
than for cause.’’.
SEC. 803. AMENDMENTS RELATING TO PROCUREMENT
FROM FIRMS IN INDUSTRIAL BASE FOR PRO-
DUCTION OF SMALL ARMS.
(a) REQUIREMENT TO LIMIT PROCUREMENTS
TO
CERTAIN SOURCES.—Subsection (a) of section 2473 of
title 10, United States Code, is amended—
(1) in the heading, by striking out the first
word and inserting in lieu thereof ‘‘REQUIREMENT’’;
and
(2) by striking out ‘‘To the extent that the Sec-
retary of Defense determines necessary to preserve
the small arms production industrial base, the Sec-
retary may’’ and inserting in lieu thereof ‘‘In order
to preserve the small arms production industrial
base, the Secretary of Defense shall’’.
(b) ADDITIONAL COVERED PROPERTY AND SERV-
ICES.—Subsection (b) of such section is amended—
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(1) by redesignating paragraphs (1) and (2) as
paragraphs (2) and (3), respectively;
(2) by inserting before paragraph (2), as so re-
designated, the following new paragraph:
‘‘(1) Small arms end items.’’;
(3) in paragraph (2), as so redesignated, by in-
serting before the period the following: ‘‘, if those
parts are manufactured under a contract with the
Department of Defense to produce the end item’’;
and
(4) by adding after paragraph (3) the following
new paragraph:
‘‘(4) Repair parts consisting of barrels, receiv-
ers, and bolts for small arms, whether or not the
small arms are in production under a contract with
the Department of Defense at the time of production
of such repair parts.’’.
(c) RELATIONSHIP
TO
OTHER
PROVISIONS
OF
LAW.—Such section is further amended by adding at the
end the following new subsection:
‘‘(d) RELATIONSHIP TO OTHER PROVISIONS.—(1) If
a procurement under subsection (a) is a procurement of
a commercial item, the Secretary may, notwithstanding
section 2306(b)(1)(B) of this title, require the submission
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of certified cost or pricing data under section 2306(a) of
this title.
‘‘(2) Subsection (a) is a requirement for purposes of
section 2304(c)(5) of this title.’’.
SEC. 804. TIME FOR SUBMISSION OF ANNUAL REPORT RE-
LATING TO BUY AMERICAN ACT.
Section 827 of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat.
2611; 41 U.S.C. 10b–3) is amended by striking out ‘‘90
days’’ and inserting in lieu thereof ‘‘60 days’’.
SEC. 805. STUDY ON INCREASE IN MICRO-PURCHASE
THRESHOLD.
(a) STUDY REQUIREMENT.—The Comptroller Gen-
eral, in consultation with the Administrator for Federal
Procurement Policy, the Administrator of the Small Busi-
ness Administration, and the Secretary of Defense, shall
conduct a study to assess the impact of the current micro-
purchase program and the advisability of increasing the
micro-purchase threshold under section 32 of the Office
of Federal Procurement Policy Act (41 U.S.C. 428) to
$10,000.
(b) MATTERS COVERED.—(1) The assessment of the
impact of the current micro-purchase program shall be
based on purchase activity under the micro-purchase
threshold conducted during the two-year period beginning
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on February 10, 1996 (the date of the enactment of the
Clinger-Cohen Act of 1996 (divisions D and E of Public
Law 104–106)). The assessment shall include, to the ex-
tent practicable—
(A) a general breakdown of the supplies, serv-
ices, and construction purchased; and
(B) an evaluation of the rate of small business
participation, economic concentration, and competi-
tion.
(2) The assessment of the advisability of increasing
the micro-purchase threshold shall include a comparison
of any adverse impact of an increased micro-purchase
threshold (such as on small business participation) to ben-
efits (such as cost savings, including administrative cost
savings, savings from a reduced acquisition workforce and
logistics structure, and reduction in acquisition lead time).
(c) REPORT.—Not later than 30 days after comple-
tion of the study, the Comptroller General shall submit
a report on the results of the study to—
(1) the Committees on Armed Services and on
Small Business of the Senate; and
(2) the Committees on National Security and
on Small Business of the House of Representatives.
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TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND
MANAGEMENT
SEC. 901. FURTHER REDUCTIONS IN DEFENSE ACQUISI-
TION WORKFORCE.
(a) REDUCTION IN DEFENSE ACQUISITION WORK-
FORCE.—Chapter 87 of title 10, United States Code, is
amended by adding at the end the following new section:
‘‘§ 1765. Limitation on number of personnel
‘‘(a) LIMITATION.—Effective October 1, 2001, the
number of defense acquisition personnel may not exceed
the baseline number reduced by 70,000.
‘‘(b) PHASED REDUCTION.—The number of defense
acquisition personnel—
‘‘(1) as of October 1, 1999, may not exceed the
baseline number reduced by 25,000; and
‘‘(2) as of October 1, 2000, may not exceed the
baseline number reduced by 50,000.
‘‘(c) BASELINE NUMBER.—For purposes of this sec-
tion, the baseline number is the total number of defense
acquisition personnel as of October 1, 1998.
‘‘(d) DEFENSE
ACQUISITION
PERSONNEL
DE-
FINED.—In this section, the term ‘defense acquisition per-
sonnel’ means military and civilian personnel (other than
civilian personnel who are employed at a maintenance
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depot) who are assigned to, or employed in, acquisition
organizations of the Department of Defense (as specified
in Department of Defense Instruction numbered 5000.58
dated January 14, 1992).’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of subchapter V of such chapter is
amended by adding at the end the following new item:
‘‘1765. Limitation on number of personnel.’’.
SEC. 902. LIMITATION ON OPERATION AND SUPPORT
FUNDS FOR THE OFFICE OF THE SECRETARY
OF DEFENSE.
Of the amount available for fiscal year 1999 for oper-
ation and support activities of the Office of the Secretary
of Defense, not more than 90 percent may be obligated
until each of the following reports has been submitted:
(1) The report required to be submitted to the
congressional defense committees by section 904(b)
of the National Defense Authorization Act for Fiscal
Year 1997 (Public Law 104–201; 110 Stat. 2619).
(2) The reports required to be submitted to
Congress by sections 911(b) and 911(c) of the Na-
tional Defense Authorization Act for Fiscal Year
1998 (Public Law 105–85; 111 Stat. 1858, 1859).
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SEC. 903. REVISION TO DEFENSE DIRECTIVE RELATING TO
MANAGEMENT HEADQUARTERS AND HEAD-
QUARTERS SUPPORT ACTIVITIES.
Not later than October 1, 1999, the Secretary of De-
fense shall issue a revision to Department of Defense Di-
rective 5100.73, entitled ‘‘Department of Defense Man-
agement Headquarters and Headquarters Support Activi-
ties’’, so as to incorporate in that directive the following:
(1) A threshold specified by command (or other
organizational element) such that any headquarters
activity below the threshold is not considered for the
purpose of the directive to be a management head-
quarters or headquarters support activity.
(2) A definition of the term ‘‘management
headquarters and headquarters support activities’’
that (A) is based upon function (rather than organi-
zation), and (B) includes any activity (other than an
operational activity) that reports directly to such an
activity.
(3) Uniform application of those definitions
throughout the Department of Defense.
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SEC. 904. UNDER SECRETARY OF DEFENSE FOR POLICY TO
HAVE RESPONSIBILITY WITH RESPECT TO
EXPORT CONTROL ACTIVITIES OF THE DE-
PARTMENT OF DEFENSE.
(a) FUNCTIONS OF THE UNDER SECRETARY.—Sec-
tion 134(b)(1) of title 10, United States Code, is amended
by adding at the end the following new sentence: ‘‘The
Under Secretary shall have responsibility for overall super-
vision of activities of the Department of Defense relating
to export controls.’’.
(b) IMPLEMENTATION REPORT.—Not later than 30
days after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the Committee on Armed
Services of the Senate and the Committee on National Se-
curity of the House of Representatives a report on the
plans of the Secretary for the implementation of the
amendment made by subsection (a). The report shall in-
clude—
(1) a description of any organizational changes
within the Department of Defense to be made in
order to implement that amendment; and
(2) a description of the role of the Chairman of
the Joint Chiefs of Staff with respect to export con-
trol activities of the Department following the imple-
mentation of the amendment made by subsection (a)
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and how that role compares to the practice in effect
before such implementation.
(c) EFFECTIVE DATE.—The amendment made by
subsection (a) shall be implemented not later than 45 days
after the date of the enactment of this Act.
SEC. 
905. 
INDEPENDENT 
TASK 
FORCE 
ON 
TRANS-
FORMATION AND DEPARTMENT OF DEFENSE
ORGANIZATION.
(a) FINDINGS.—Congress finds the following:
(1) The post-Cold War era is marked by geo-
political uncertainty and by accelerating techno-
logical change, particularly with regard to informa-
tion technologies.
(2) The combination of that geopolitical uncer-
tainty and accelerating technological change por-
tends a transformation in the conduct of war, par-
ticularly in ways that are likely to increase the effec-
tiveness of joint force operations.
(3) The Department of Defense must be orga-
nized appropriately in order to fully exploit the op-
portunities offered by, and to meet the challenges
posed by, this anticipated transformation in the con-
duct of war.
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(4) The basic organization of the Department
of Defense was established by the National Security
Act of 1947 and the 1949 amendments to that Act.
(5) The Goldwater-Nichols Department of De-
fense Reorganization Act of 1986 (Public Law 99–
433) dramatically improved the capability of the De-
partment of Defense to carry out operations involv-
ing joint forces, but did not address adequately
issues pertaining to the development of joint forces.
(6) In the future, the ability to achieve im-
proved operations of joint forces, particularly under
rapidly changing technological conditions, will de-
pend on improved force development for joint forces.
(b) 
INDEPENDENT
TASK
FORCE
ON
TRANS-
FORMATION AND DEPARTMENT OF DEFENSE ORGANIZA-
TION.—The Secretary of Defense shall establish a task
force of the Defense Science Board to examine the current
organization of the Department of Defense with regard
to the appropriateness of that organization for preparing
for a transformation in the conduct of war. The task force
shall be established not later than November 1, 1998.
(c) DUTIES OF THE TASK FORCE.—The task force
shall assess, and shall make recommendations for the ap-
propriate organization of, the Office of the Secretary of
Defense, the Joint Chiefs of Staff, the individual Armed
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Forces, and the executive parts of the military depart-
ments for the purpose of preparing the Department of De-
fense for a transformation in the conduct of war. In mak-
ing those assessments and developing those recommenda-
tions, the task force shall review the following:
(1) The general organization of the Department
of Defense, including whether responsibility and au-
thority for issues relating to a transformation in the
conduct of war are appropriately allocated, especially
among the Office of the Secretary of Defense, the
Joint Chiefs of Staff, and the individual Armed
Forces.
(2) The joint requirements process and the re-
quirements processes for each of the Armed Forces,
including the establishment of measures of effective-
ness and methods for resource allocation.
(3) The process and organizations responsible
for doctrinal development, including the appropriate
relationship between joint force and service doctrine
and doctrinal development organizations.
(4) The current programs and organizations
under the Office of the Secretary of Defense, the
Joint Chiefs of Staff and the Armed Forces devoted
to innovation and experimentation related to a
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transformation in the conduct of war, including the
appropriateness of—
(A) conducting joint field tests;
(B) establishing a separate unified com-
mand as a joint forces command to serve, as its
sole function, as the trainer, provider, and de-
veloper of forces for joint operations;
(C) establishing a Joint Concept Develop-
ment Center to monitor exercises and develop
measures of effectiveness, analytical concepts,
models, and simulations appropriate for under-
standing the transformation in the conduct of
war;
(D) establishing a Joint Battle Laboratory
headquarters to conduct joint experimentation
and to integrate the similar efforts of the
Armed Forces; and
(E) establishing an Assistant Secretary of
Defense for transformation in the conduct of
war.
(5) Joint training establishments and training
establishments of the Armed Forces, including those
devoted to professional military education, and the
appropriateness of establishing national training
centers.
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(6) Other issues relating to a transformation in
the conduct of war that the Secretary considers ap-
propriate.
(d) REPORT.—The task force shall submit to the Sec-
retary of Defense a report containing its assessments and
recommendations not later than February 1, 1999. The
Secretary shall submit the report to the Committee on Na-
tional Security of the House of Representatives and the
Committee on Armed Services of the Senate not later than
March 1, 1999, together with the recommendations and
comments of the Secretary of Defense.
SEC. 906. IMPROVED ACCOUNTING FOR DEFENSE CON-
TRACT SERVICES.
(a) IN GENERAL.—(1) Chapter 131 of title 10,
United States Code, is amended by inserting after section
2211 the following new section:
‘‘§ 2212. Obligations for contract services: reporting
in budget object classes
‘‘(a) LIMITATION ON REPORTING IN MISCELLANE-
OUS SERVICES OBJECT CLASS.—The Secretary of De-
fense shall ensure that, in reporting to the Office of Man-
agement and Budget (pursuant to OMB Circular A–11
(relating to preparation and submission of budget esti-
mates)) obligations of the Department of Defense for any
period of time for contract services, no more than 15 per-
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cent of the total amount of obligations so reported is re-
ported in the miscellaneous services object class.
‘‘(b) DEFINITION OF REPORTING CATEGORIES FOR
ADVISORY AND ASSISTANCE SERVICES.—In carrying out
section 1105(g) of title 31 for the Department of Defense
(and in determining what services are to be reported to
the Office of Management and Budget in the advisory and
assistance services object class), the Secretary of Defense
shall apply to the terms used for the definition of ‘advisory
and assistance services’ in paragraph (2)(A) of that sec-
tion the following meanings:
‘‘(1) MANAGEMENT
AND
PROFESSIONAL
SUP-
PORT SERVICES.—The term ‘management and pro-
fessional support services’ (used in clause (i) of sec-
tion 1105(g)(2)(A) of title 31) means services that
provide engineering or technical support, assistance,
advice, or training for the efficient and effective
management and operation of organizations, activi-
ties, or systems. Those services—
‘‘(A) are closely related to the basic re-
sponsibilities and mission of the using organiza-
tion; and
‘‘(B) include efforts that support or con-
tribute to improved organization or program
management, logistics management, project
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monitoring and reporting, data collection, budg-
eting, accounting, auditing, and administrative
or technical support for conferences and train-
ing programs.
‘‘(2) 
STUDIES, 
ANALYSES, 
AND
EVALUA-
TIONS.—The term ‘studies, analyses, and evalua-
tions’ (used in clause (ii) of section 1105(g)(2)(A) of
title 31) means services that provide organized, ana-
lytic assessments to understand or evaluate complex
issues to improve policy development, decision-
making, management, or administration and that re-
sult in documents containing data or leading to con-
clusions or recommendations. Those services may in-
clude databases, models, methodologies, and related
software created in support of a study, analysis, or
evaluation.
‘‘(3) ENGINEERING
AND
TECHNICAL
SERV-
ICES.—The term ‘engineering and technical services’
(used in clause (iii) of section 1105(g)(2)(A) of title
31) means services that take the form of advice, as-
sistance, training, or hands-on training necessary to
maintain and operate fielded weapon systems, equip-
ment, and components (including software when ap-
plicable) at design or required levels of effectiveness.
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‘‘(c) PROPER CLASSIFICATION OF ADVISORY AND AS-
SISTANCE SERVICES.—Before the submission to the Office
of Management and Budget of the proposed Department
of Defense budget for inclusion in the President’s budget
for a fiscal year pursuant to section 1105 of title 31, the
Secretary of Defense, acting through the Under Secretary
of Defense (Comptroller), shall review all Department of
Defense services expected to be performed as contract
services during the fiscal year for which that budget is
to be submitted in order to ensure that those services that
are advisory and assistance services (as defined in accord-
ance with subsection (b)) are in fact properly classified,
in accordance with that subsection, in the advisory and
assistance services object class.
‘‘(d) INFORMATION
ON SERVICE CONTRACTS.—In
carrying out the annual review under subsection (c) of De-
partment of Defense services expected to be performed as
contract services during the next fiscal year, the Secretary
(acting through the Under Secretary (Comptroller)) shall
conduct an assessment of the total non-Federal effort that
resulted from the performance of all contracts for such
services during the preceding fiscal year and the total non-
Federal effort that resulted, or that is expected to result,
from the performance of all contracts for such services
during the current fiscal year and the next fiscal year. The
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assessment shall include determination of the following for
each such year:
‘‘(1) The amount expended or expected to be
expended for non-Federal contract services, shown
for the Department of Defense as a whole and dis-
played by contract services object class for each
DOD organization.
‘‘(2) The amount expended or expected to be
expended for contract services competed under OMB
Circular A–76 or a similar process, shown for the
Department of Defense as a whole and displayed by
contract services object class for each DOD organi-
zation.
‘‘(3) The number of private sector workyears
performed or expected to be performed in connection
with the performance of non-Federal contract serv-
ices, shown for the Department of Defense as a
whole and displayed by contract services object class
for each DOD organization.
‘‘(4) Any other information that the Secretary
(acting through the Under Secretary) determines to
be relevant and of value.
‘‘(e) REPORT TO CONGRESS.—The Secretary shall
submit to Congress each year, not later than 30 days after
the date on which the budget for the next fiscal year is
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submitted pursuant to section 1105 of title 31, a report
containing the information derived from the assessment
under subsection (d).
‘‘(f) ASSESSMENT BY COMPTROLLER GENERAL.—(1)
The Comptroller General shall conduct a review of the re-
port of the Secretary of Defense under subsection (e) each
year and shall—
‘‘(A) assess the methodology used by the Sec-
retary in obtaining the information submitted to
Congress in that report; and
‘‘(B) assess the information submitted to Con-
gress in that report.
‘‘(2) Not later than 120 days after the date on which
the Secretary submits to Congress the report required
under subsection (e) for any year, the Comptroller General
shall submit to Congress the Comptroller General’s report
containing the results of the review for that year under
paragraph (1).
‘‘(g) DEFINITIONS.—In this section:
‘‘(1) The term ‘contract services’ means all
services that are reported to the Office of Manage-
ment and Budget pursuant to OMB Circular A–11
(relating to preparation and submission of budget
estimates) in budget object classes that are des-
ignated in the Object Class 25 series.
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‘‘(2) The term ‘advisory and assistance services
object class’ means those contract services constitut-
ing the budget object class that is denominated ‘Ad-
visory and Assistance Service and designated (as the
date of the enactment of this section) as Object
Class 25.1 (or any similar object class established
after the date of the enactment of this section for
the reporting of obligations for advisory and assist-
ance contract services).
‘‘(3) The term ‘miscellaneous services object
class’ means those contract services constituting the
budget object class that is denominated ‘Other Serv-
ices (services not otherwise specified in the 25 se-
ries)’ and designated (as the date of the enactment
of this section) as Object Class 25.2 (or any similar
object class established after the date of the enact-
ment of this section for the reporting of obligations
for miscellaneous or unspecified contract services).
‘‘(4) The term ‘DOD organization’ means—
‘‘(A) the Office of the Secretary of De-
fense;
‘‘(B) each military department;
‘‘(C) the Joint Chiefs of Staff and the uni-
fied and specified commands;
‘‘(D) each Defense Agency; and
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‘‘(E) each Department of Defense Field
Activity.
‘‘(5) The term ‘private sector workyear’ means
an amount of labor equivalent to the total number
of hours of labor that an individual employed on a
full-time equivalent basis by the Federal Government
performs in a given year.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 2211 the following new item:
‘‘2212. Obligations for contract services: reporting in budget object classes.’’.
(b) TRANSITION.—For the budget for fiscal year
2000, and the reporting of information to the Office of
Management and Budget in connection with the prepara-
tion of that budget, section 2212 of title 10, United States
Code, as added by subsection (a), shall be applied by sub-
stituting ‘‘30 percent’’ in subsection (a) for ‘‘15 percent’’.
(c) INITIAL CLASSIFICATION OF ADVISORY AND AS-
SISTANCE SERVICES.—Not later than February 1, 1999,
the Secretary of Defense, acting through the Under Sec-
retary of Defense (Comptroller), shall review all Depart-
ment of Defense services performed or expected to be per-
formed as contract services during fiscal year 1999 in
order to ensure that those services that are advisory and
assistance services (as defined in accordance with sub-
section (b) of section 2212 of title 10, United States Code,
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as added by subsection (a)) are in fact properly classified,
in accordance with that subsection, in the advisory and
assistance services object class (as defined in subsection
(g)(2) of that section).
(d) FISCAL YEAR 1999 REDUCTION.—The total
amount that may be obligated by the Secretary of Defense
for contracted advisory and assistance services from
amounts appropriated for fiscal year 1999 is the amount
programmed for those services resulting from the review
referred to in subsection (c) reduced by $500,000,000.
SEC. 907. REPEAL OF REQUIREMENT RELATING TO ASSIGN-
MENT OF TACTICAL AIRLIFT MISSION TO RE-
SERVE COMPONENTS.
Section 1438 of the National Defense Authorization
Act for Fiscal Year 1991 (Public Law 101–510; 104 Stat.
1689), as amended by section 1023 of the National De-
fense Authorization Act for Fiscal Years 1992 and 1993
(Public Law 102–190; 105 Stat. 1460), is repealed.
SEC. 908. REPEAL OF CERTAIN REQUIREMENTS RELATING
TO INSPECTOR GENERAL INVESTIGATIONS
OF REPRISAL COMPLAINTS.
(a) REPEAL OF REQUIREMENT OF NOTICE THAT IN-
VESTIGATION WILL TAKE MORE THAN 90 DAYS.—Sub-
section (e) of section 1034 of title 10, United States Code,
is amended—
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(1) by striking out paragraph (3);
(2) by redesignating paragraph (4) as para-
graph (3).
(b) REPEAL OF REQUIREMENT FOR POST-DISPOSI-
TION INTERVIEW WITH COMPLAINANT.—Such section is
further amended by striking out subsection (h).
SEC. 909. CONSULTATION WITH COMMANDANT OF THE MA-
RINE CORPS REGARDING MARINE CORPS
AVIATION.
(a) IN GENERAL.—Chapter 503 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 5026. Consultation with Commandant of the Ma-
rine Corps regarding Marine Corps avia-
tion
‘‘The Secretary of the Navy shall require that the
views of the Commandant of the Marine Corps be obtained
before a milestone decision or other major decision is made
by an element of the Department of the Navy outside the
Marine Corps in a procurement matter, a research, devel-
opment, test, and evaluation matter, or a depot-level main-
tenance matter that concerns Marine Corps aviation.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
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‘‘5026. Consultation with Commandant of the Marine Corps regarding Marine
Corps aviation.’’.
SEC. 910. ANNUAL REPORT ON INDIVIDUALS EMPLOYED IN
PRIVATE SECTOR WHO PROVIDE SERVICES
UNDER CONTRACT FOR THE DEPARTMENT
OF DEFENSE.
(a) IN GENERAL.—(1) Chapter 131 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 2222. Information system to track quantity and
value of non-Federal services
‘‘(a) IMPLEMENTATION OF SYSTEM.—The Secretary
of Defense shall implement an information system for the
collection and reporting of information by the Secretaries
of the military departments, Directors of the Defense
Agencies, and heads of other DOD organizations concern-
ing the quantity and value of non-Federal services they
acquired. The system shall be designed to provide informa-
tion, for the Department of Defense as a whole and for
each DOD organization, concerning the following:
‘‘(1) The number of workyears performed by in-
dividuals employed by non-Federal entities providing
goods and services under contracts of the Depart-
ment of Defense.
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‘‘(2) The labor costs to the Department of De-
fense under the contracts associated with the per-
formance of those workyears.
‘‘(3) The value of the goods and services pro-
cured by the Department of Defense from non-Fed-
eral entities.
‘‘(4) The appropriations associated with the
contracts for those goods and services.
‘‘(5) The Federal supply class or service code
associated with those contracts.
‘‘(6) The major organization element contract-
ing for the goods and services.
‘‘(b) ANNUAL REPORTS
TO SECRETARY
OF DE-
FENSE.—Not later than February 1 of each year, the head
of each DOD organization shall submit to the Secretary
of Defense a report detailing the quantity and value of
non-Federal services obtained by that organization. The
report shall be developed from the system under sub-
section (a) and shall contain the following:
‘‘(1) The total amount paid during the preced-
ing fiscal year to obtain goods and services provided
under contracts, expressed in dollars and as a per-
centage of the total budget of that organization, and
shown by appropriation account or revolving fund,
by Federal supply class or service code, and by any
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major organizational element under the authority of
the head of that organization.
‘‘(2) The total number of workyears performed
during the preceding fiscal year by employees of
non-Federal entities providing goods and services
under contract, shown by appropriation account or
revolving fund, by Federal supply class or service
code, and by any major organizational element
under the authority of the head of that organization.
‘‘(3) A detailed discussion of the methodology
used under the system to derive the data provided
in the report.
‘‘(c) ANNUAL REPORT
TO CONGRESS.—Not later
than February 15 of each year, the Secretary of Defense
shall submit to Congress a report containing all of the in-
formation concerning the quantity and value of non-Fed-
eral services obtained by the Department of Defense as
shown in the reports submitted to the Secretary for that
year under subsection (b). The Secretary shall include in
that report the information provided by each DOD organi-
zation under subsection (b) without revision from the
manner in which it is submitted to the Secretary by the
head of that organization.
‘‘(d) DEVELOPMENT
OF INFORMATION.—(1) The
Secretary of Defense may prescribe regulations to require
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contractors providing goods and services to the Depart-
ment of Defense to include on invoices submitted to the
Secretary or head of a DOD organization responsible for
such contracts the number of hours of labor attributable
to the contract for which the invoice is submitted.
‘‘(2) The Secretary shall require that each DOD or-
ganization provide information for the information system
under subsection (a) and the annual report under sub-
section (b) in as uniform manner as practicable.
‘‘(e) ASSESSMENT BY COMPTROLLER GENERAL.—(1)
The Comptroller General shall conduct a review of the re-
port of the Secretary of Defense under subsection (c) each
year and shall—
‘‘(A) assess the appropriateness of the meth-
odology used by the Secretary and the DOD organi-
zations in deriving the information provided to Con-
gress in the report; and
‘‘(B) assess the accuracy of the information
provided to Congress in the report.
‘‘(2) Not later than 90 days after the date on which
the Secretary submits to Congress the report required
under subsection (e) for any year, the Comptroller General
shall submit to Congress the Comptroller General’s report
containing the results of the review for that year under
paragraph (1).
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‘‘(e) DEFINITIONS.—In this section:
‘‘(1) The term ‘DOD organization’ means—
‘‘(A) the Office of the Secretary of De-
fense;
‘‘(B) each military department;
‘‘(C) the Joint Chiefs of Staff and the uni-
fied and specified commands;
‘‘(D) each Defense Agency; and
‘‘(E) each Department of Defense Field
Activity.
‘‘(2) The term ‘workyear’ means the private
sector equivalent to the total number of hours of
labor that an individual employed on a full-time
equivalent basis by the Federal Government per-
forms in a given year.
‘‘(3) The term ‘contract’ has the meaning given
such term in parts 34, 35, 36, and 37 of title 48,
Code of Federal Regulations.
‘‘(4) The term ‘labor costs’ means all com-
pensation costs for personal services as defined in
part 31 of title 48, Code of Federal Regulations.
‘‘(5) The term ‘major organizational element’
means an organization within a Defense Agency or
military department that is headed by a Senior Ex-
ecutive Service official (or military equivalent) and
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that contains a contract administration office (as de-
fined in part 2 of title 48, Code of Federal Regula-
tions).
‘‘(6) The term ‘Federal supply class or service
code’ is the functional code prescribed by section
253.204–70 of the Department of Defense Federal
Acquisition Regulation Supplement, as determined
by the first character of such code.
‘‘(f) CONSTRUCTION OF SECTION.—The Secretary of
Defense shall ensure that the provisions of this section are
construed broadly so as enable accurate and full account-
ing for the volume and costs associated with contractor
support of the Department of Defense.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘2222. Information system to track quantity and value of non-Federal serv-
ices.’’.
(b) EFFECTIVE DATE.—The system required by sub-
section (a) of section 2222 of title 10, United States Code,
as added by subsection (a), shall be implemented not later
than one year after the date of the enactment of this Act.
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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 1999 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.
(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.
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(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 H.R. 3616
of the One Hundred Fifth Congress and 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-
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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. OUTLAY LIMITATIONS.
(a) DEPARTMENT OF DEFENSE.—The Secretary of
Defense shall ensure that outlays of the Department of
Defense during fiscal year 1999 from amounts appro-
priated or otherwise available to the Department of De-
fense for military functions of the Department of Defense
(including military construction and military family hous-
ing) do not exceed $252,650,000,000.
(b) DEPARTMENT OF ENERGY.—The Secretary of
Energy shall ensure that outlays of the Department of En-
ergy during fiscal year 1999 from amounts appropriated
or otherwise made available to the Department of Energy
for national security programs of that Department do not
exceed $11,772,000,000.
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Subtitle B—Naval Vessels and
Shipyards
SEC. 1011. REVISION TO REQUIREMENT FOR CONTINUED
LISTING OF TWO IOWA-CLASS BATTLESHIPS
ON THE NAVAL VESSEL REGISTER.
In carrying out section 1011 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104–
106; 110 Stat. 421), the Secretary of the Navy shall list
on the Naval Vessel Register, and maintain on that reg-
ister, the following two Iowa-class battleships: the USS
IOWA (BB–61) and the USS WISCONSIN (BB–64).
SEC. 1012. TRANSFER OF USS NEW JERSEY.
The Secretary of the Navy shall strike the USS NEW
JERSEY (BB–62) from the Naval Vessel Register and
shall transfer that vessel to a non-for-profit entity in ac-
cordance with section 7306 of title 10, United States
Code. The Secretary shall require as a condition of the
transfer of that vessel that the transferee locate the vessel
in the State of New Jersey.
SEC. 1013. LONG-TERM CHARTER OF THREE VESSELS IN
SUPPORT OF SUBMARINE RESCUE, ESCORT,
AND TOWING.
The Secretary of the Navy may enter into contracts
in accordance with section 2401 of title 10, United States
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Code, for the charter through September 30, 2003, of the
following vessels:
(1) The CAROLYN CHOUEST (United States
official number D102057).
(2) The KELLIE CHOUEST (United States
official number D1038519).
(3) The DOLORES CHOUEST (United States
official number D600288).
SEC. 1014. TRANSFER OF OBSOLETE ARMY TUGBOAT.
In carrying out section 1023 of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105–
85; 111 Stat. 1876), the Secretary of the Army may sub-
stitute the obsolete, decommissioned tugboat Attleboro
(LT–1977) for the tugboat Normandy (LT–1971) as one
of the two obsolete tugboats authorized to be transferred
by the Secretary under that section.
SEC. 1015. LONG-TERM CHARTER CONTRACTS FOR ACQUI-
SITION OF AUXILIARY VESSELS FOR THE DE-
PARTMENT OF DEFENSE.
(a) PROGRAM AUTHORIZATION.—Chapter 631 of title
10, United States Code, is amended by adding at the end
the following new section:
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‘‘§ 7233. Auxiliary vessels: authority for long-term
charter contracts
‘‘(a) AUTHORIZED CONTRACTS.—After September
30, 1998, the Secretary of the Navy, subject to subsection
(b), may enter into a contract for the long-term lease or
charter of a newly built surface vessel, under which the
contractor agrees to provide a crew for the vessel for the
term of the long-term lease or charter, for any of the fol-
lowing:
‘‘(1) The combat logistics force of the Navy.
‘‘(2) The strategic sealift program of the Navy.
‘‘(3) Other auxiliary support vessels for the De-
partment of Defense.
‘‘(b) CONTRACTS REQUIRED TO BE AUTHORIZED BY
LAW.—A contract may be entered into under this section
with respect to specific vessels only if the Secretary is spe-
cifically authorized by law to enter into such a contract
with respect to those vessels.
‘‘(c) FUNDS FOR CONTRACT PAYMENTS.—The Sec-
retary may make payments for contracts entered into
under this section using funds available for obligation dur-
ing the fiscal year for which the payments are required
to be made. Any such contract shall provide that the
United States will not be required to make a payment
under the contract (other than a termination payment, if
required) before October 1, 2000.
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‘‘(d) TERM OF CONTRACT.—In this section, the term
‘long-term lease or charter’ means a lease, charter, service
contract, or conditional sale agreement with respect to a
vessel the term of which (including any option period) is
for a period of 20 years or more.
‘‘(e) OPTION TO BUY.—A contract entered into
under the authority of this section may contain options
for the United States to purchase one or more of the ves-
sels covered by the contract at any time during, or at the
end of, the contract period (including any option period)
upon payment of an amount not in excess of the
unamortized portion of the cost of the vessels plus
amounts incurred in connection with the termination of
the financing arrangements associated with the vessels.
‘‘(f) DOMESTIC
CONSTRUCTION.—The Secretary
shall require in any contract entered into under this sec-
tion that each vessel to which the contract applies—
‘‘(1) shall have been constructed in a shipyard
within the United States; and
‘‘(2) upon delivery, shall be documented under
the laws of the United States.
‘‘(g) VESSEL CREWING.—The Secretary shall require
in any contract entered into under this section that the
crew of any vessel to which the contract applies be com-
prised of private sector commercial mariners.
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‘‘(h) DOMESTIC CONSTRUCTION REQUIREMENT FOR
CERTAIN LEASES OF VESSELS.—(1) Notwithstanding sec-
tion 2400 or 2401a of this title or any other provision
of law, the Secretary of Defense may not enter into a con-
tract for the lease or charter of a vessel described in para-
graph (2) for a contract period in excess of 17 months
(inclusive of any option periods) unless the vessel is con-
structed in a shipyard in the United States.
‘‘(2) Paragraph (1) applies to vessels of the following
types:
‘‘(A) Auxiliary support vessel.
‘‘(B) Strategic sealift vessel.
‘‘(C) Tank vessel.
‘‘(D) Combat logistics force vessel.
‘‘(i) CONTINGENT WAIVER OF OTHER PROVISIONS
OF LAW.—A contract authorized by this section may be
entered into without regard to section 2401 or 2401a of
this title if the Secretary of Defense makes the following
findings with respect to that contract:
‘‘(1) The need for the vessels or services to be
provided under the contract is expected to remain
substantially unchanged during the contemplated
contract or option period.
‘‘(2) There is a reasonable expectation that
throughout the contemplated contract or option pe-
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riod the Secretary of the Navy (or, if the contract
is for services to be provided to, and funded by, an-
other military department, the Secretary of that
military department) will request funding for the
contract at the level required to avoid contract can-
cellation.
‘‘(3) The use of such contract or the exercise of
such option is in the interest of the national defense.
‘‘(j) SOURCE OF FUNDS FOR TERMINATION LIABIL-
ITY.—If a contract entered into under this section is ter-
minated, the costs of such termination may be paid
from—
‘‘(1) amounts originally made available for per-
formance of the contract;
‘‘(2) amounts currently available for operation
and maintenance of the type of vessels or services
concerned and not otherwise obligated; or
‘‘(3) funds appropriated for those costs.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘7233. Auxiliary vessels: authority for long-term charter contracts.’’.
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Subtitle C—Matters Relating to
Counter Drug Activities
SEC. 1021. DEPARTMENT OF DEFENSE SUPPORT FOR
COUNTER-DRUG ACTIVITIES.
(a) CONTINUATION OF AUTHORITY.—Subsection (a)
of section 1004 of the National Defense Authorization Act
for Fiscal Year 1991 (Public Law 101–510; 10 U.S.C.
374 note) is amended by striking out ‘‘through 1999’’ and
inserting in lieu thereof ‘‘through 2000’’.
(b) TYPES OF SUPPORT.—Subsection (b)(4) of such
section is amended by inserting before the period at the
end the following: ‘‘conducted by the Department of De-
fense or a Federal, State, or local law enforcement agency,
or a foreign law enforcement agency in the case of
counter-drug activities outside the United States’’.
(c) UNSPECIFIED MINOR MILITARY CONSTRUCTION
PROJECTS.—Such section is further amended by adding
at the end the following new section:
‘‘(h) UNSPECIFIED MINOR MILITARY CONSTRUCTION
PROJECTS.—Section 2805 of title 10, United States Code,
shall apply with respect to any unspecified minor military
construction project carried out using the authority pro-
vided under this section.’’.
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SEC. 1022. SUPPORT FOR COUNTER-DRUG OPERATION
CAPER FOCUS.
(a) SUPPORT REQUIRED.—During fiscal year 1999,
the Secretary of Defense shall make available such surface
vessels of the Navy and maritime patrol aircraft and crews
of the Navy as may be necessary to conduct the final
phase of the counter-drug operation known as Caper
Focus, which targets the maritime movement of cocaine
on vessels in the eastern Pacific Ocean.
(b) FISCAL YEAR 1999 FUNDING.—Of the amount
authorized to be appropriated pursuant to section 301(20)
for 
drug 
interdiction 
and 
counter-drug 
activities,
$24,400,000 shall be available only for the purpose of con-
ducting the counter-drug operation known as Caper
Focus.
SEC. 1023. SENSE OF THE CONGRESS REGARDING ESTAB-
LISHMENT OF COUNTER-DRUG CENTER IN
PANAMA.
In anticipation of the closure of all United States
military installations in Panama by December 31, 1999,
it is the sense of the Congress that the Secretary of De-
fense, in consultation with the Secretary of State, should
continue negotiations with the Government of Panama for
the establishment in Panama of a counter-drug center to
be used by the Armed Forces of the United States in co-
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operation with Panamanian forces and military personnel
of other friendly nations.
SEC. 1024. ASSIGNMENT OF MEMBERS OF THE ARMED
FORCES TO ASSIST IMMIGRATION AND NATU-
RALIZATION SERVICE AND CUSTOMS SERV-
ICE.
(a) ASSIGNMENT AUTHORITY OF SECRETARY OF DE-
FENSE.—Chapter 18 of title 10, United States Code, is
amended by inserting after section 374 the following new
section:
‘‘§ 374a. Assignment of members to assist border pa-
trol and control
‘‘(a) ASSIGNMENT AUTHORIZED.—The Secretary of
Defense may assign members of the armed forces to as-
sist—
‘‘(1) the Immigration and Naturalization Serv-
ice in preventing the entry of terrorists, drug traf-
fickers, and illegal aliens into the United States; and
‘‘(2) the United States Customs Service in the
inspection of cargo, vehicles, and aircraft at points
of entry into the United States.
‘‘(b) REQUEST FOR ASSIGNMENT.—The assignment
of members of the armed forces under subsection (a) may
only occur—
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‘‘(1) at the request of the Attorney General, in
the case of an assignment to the Immigration and
Naturalization Service; and
‘‘(2) at the request of the Secretary of the
Treasury, in the case of an assignment to the
United States Customs Service.
‘‘(c) TRAINING PROGRAM.—If the assignment of
members of the armed forces is requested by the Attorney
General or the Secretary of the Treasury, the Attorney
General or the Secretary of the Treasury (as the case may
be), together with the Secretary of Defense, shall establish
a training program to ensure that members to be assigned
receive general instruction regarding issues affecting law
enforcement in the border areas in which the members will
perform duties under the assignment. A member may not
be deployed at a border location pursuant to an assign-
ment under subsection (a) until the member has success-
fully completed the training program.
‘‘(d) CONDITIONS ON USE.—(1) Whenever a member
of the armed forces who is assigned under subsection (a)
to assist the Immigration and Naturalization Service or
the United States Customs Service is performing duties
at a border location pursuant to the assignment, a civilian
law enforcement officer from the agency concerned shall
accompany the member.
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‘‘(2) Nothing in this section shall be construed to—
‘‘(A) authorize a member assigned under sub-
section (a) to conduct a search, seizure, or other
similar law enforcement activity or to make an ar-
rest; and
‘‘(B) supersede section 1385 of title 18 (popu-
larly known as the ‘Posse Comitatus Act’).
‘‘(e) NOTIFICATION REQUIREMENTS.—The Attorney
General or the Secretary of the Treasury (as the case may
be) shall notify the Governor of the State in which mem-
bers of the armed forces are to be deployed pursuant to
an assignment under subsection (a), and local govern-
ments in the deployment area, of the deployment of the
members to assist the Immigration and Naturalization
Service or the United States Customs Service (as the case
may be) and the types of tasks to be performed by the
members.
‘‘(f) REIMBURSEMENT REQUIREMENT.—Section 377
of this title shall apply in the case of members of the
armed forces assigned under subsection (a).
‘‘(g) TERMINATION OF AUTHORITY.—No assignment
may be made or continued under subsection (a) after Sep-
tember 30, 2001.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
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after the item relating to section 374 the following new
item:
‘‘374a. Assignment of members to assist border patrol and control.’’.
SEC. 1025. RANDOM DRUG TESTING OF DEPARTMENT OF
DEFENSE EMPLOYEES.
(a) EXPANSION OF EXISTING PROGRAM.—(1) Chap-
ter 81 of title 10, United States Code, is amended by in-
serting after section 1581 the following new section:
‘‘§ 1582. Random testing of employees for use of ille-
gal drugs
‘‘(a) PROGRAM REQUIRED.—The Secretary of De-
fense shall expand the drug testing program required for
civilian employees of the Department of Defense by Exec-
utive Order 12564 (51 Fed. Reg. 32889; September 15,
1986) to include the random testing on a controlled and
monitored basis of all such employees for the use of illegal
drugs.
‘‘(b) TESTING PROCEDURES AND PERSONNEL AC-
TIONS.—The requirements of Executive Order 12564 re-
garding drug testing procedures and the personnel actions
to be taken with respect to any employee who is found
to use illegal drugs shall apply to the expanded drug test-
ing program required by this section.
‘‘(c) NOTIFICATION TO NEW EMPLOYEES.—The Sec-
retary of Defense shall notify persons employed after the
date of the enactment of this section that, as a condition
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of employment by the Department of Defense, the person
may be required to submit to mandatory random drug
testing under the expanded drug testing program required
by this section.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1581 the following new item:
‘‘1582. Random testing of employees for use of illegal drugs.’’.
(b) FUNDING.—No additional funds are authorized
to be appropriated on account of the amendment made
by subsection (a). The Secretary of Defense shall carry
out the expanded drug testing program for civilian em-
ployees of the Department of Defense under section 1582
of title 10, United States Code, as added by subsection
(a), using amounts otherwise provided for the program.
Subtitle D—Miscellaneous Report
Requirements and Repeals
SEC. 1031. ANNUAL REPORT ON RESOURCES ALLOCATED
TO SUPPORT AND MISSION ACTIVITIES.
Section 113 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(l) The Secretary shall include in the annual report
to Congress under subsection (c) the following:
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‘‘(1) A comparison of the amounts provided in
the defense budget for support and for mission ac-
tivities for each of the preceding five years.
‘‘(2) A comparison of the number of military
and civilian personnel, shown by major occupational
category, assigned to support positions and to mis-
sion positions for each of the preceding five years.
‘‘(3) An accounting, shown by service and by
major occupational category, of the number of mili-
tary and civilian personnel assigned to support posi-
tions during each of the preceding five years.
‘‘(4) A listing of the number of military and ci-
vilian personnel assigned to management head-
quarters and headquarters support activities as a
percentage of military end-strength for each of the
preceding 10 years.’’.
SEC. 1032. TRANSMISSION OF EXECUTIVE BRANCH RE-
PORTS PROVIDING CONGRESS WITH CLASSI-
FIED SUMMARIES OF ARMS CONTROL DEVEL-
OPMENTS.
(a) REPORTING REQUIREMENT.—The Director of the
Arms Control and Disarmament Agency (or the Secretary
of State, if the Arms Control and Disarmament Agency
becomes an element of the Department of State) shall
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transmit to Congress on a periodic basis reports contain-
ing classified summaries of arms control developments.
(b) CONTENTS OF REPORTS.—The reports required
by subsection (a) shall include information reflecting the
activities of forums established to consider issues relating
to treaty implementation and treaty compliance, including
the Joint Compliance and Inspection Commission, the
Joint Verification Commission, the Open Skies Consult-
ative Commission, the Standing Consultative Commission,
and the Joint Consultative Group.
SEC. 1033. REPORT ON PERSONNEL RETENTION.
(a) REPORT REQUIRED.—Not later than 90 days
after the date of the enactment of this Act, the Secretary
of Defense shall submit to Congress a report containing
information on the retention of members of the Armed
Forces on active duty in the combat, combat support, and
combat service support forces of the Army, Navy, Air
Force, and Marine Corps.
(b) REQUIRED INFORMATION.—The Secretary shall
include in the report information on retention of members
with military occupational specialties (or the equivalent)
in combat, combat support, or combat service support po-
sitions in each of the Army, Navy, Air Force, and Marine
Corps. Such information shall be shown by pay grade and
shall be aggregated by enlisted grades and officers grades
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and shall be shown by military occupational specialty (or
the equivalent). The report shall set forth separately (in
numbers and as a percentage) the number of members
separated during each such fiscal year who terminate serv-
ice in the Armed Forces completely and the number who
separate from active duty by transferring into a reserve
component.
(c) YEARS COVERED BY REPORT.—The report shall
provide the information required in the report, shown on
a fiscal year basis, for each of fiscal years 1989 through
1998.
Subtitle E—Other Matters
SEC. 1041. CLARIFICATION OF LAND CONVEYANCE AU-
THORITY, 
ARMED 
FORCES 
RETIREMENT
HOME, DISTRICT OF COLUMBIA.
(a) SALE REQUIRED.—Subsection (a) of section 1053
of the National Defense Authorization Act for Fiscal Year
1997 (Public Law 104–201; 110 Stat. 2650) is amend-
ed—
(1) by striking out ‘‘, by sale or otherwise,’’;
and
(2) by adding at the end the following new sen-
tence: ‘‘The conveyance of the real property shall be
made by sale to the highest bidder, except that the
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purchase price may not be less than the fair market
value of the parcel.’’.
(b) CONFORMING AMENDMENT.—Subsection (b)(1)
of such section is amended by striking out ‘‘the disposal’’
and inserting in lieu thereof ‘‘the sale’’.
SEC. 1042. CONTENT OF NOTICE REQUIRED TO BE PRO-
VIDED GARNISHEES BEFORE GARNISHMENT
OF PAY OR BENEFITS.
(a) AUTHORIZATION OF ALTERNATIVE TO PROVID-
ING COPY OF NOTICE OR SERVICE RECEIVED BY THE
SECRETARY.—(1) Whenever the Secretary of Defense
(acting through the DOD section 459 agent) provides a
section 459 notice to an individual, the Secretary may in-
clude as part of that notice the information specified in
subsection (c) in lieu of sending with that notice a copy
(otherwise required pursuant to the parenthetical phrase
in section 459(c)(2)(A) of the Social Security Act) of the
notice or service received by the DOD section 459 agent
with respect to that individual’s child support or alimony
payment obligations.
(2) Whenever the Secretary of Defense (acting
through the DOD section 5520a agent) provides a section
5520a notice to an individual, the Secretary may include
as part of that notice the information specified in sub-
section (c) in lieu of sending with that notice a copy (oth-
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erwise required pursuant to the second parenthetical
phrase in section 5520a(c) of the title 5, United States
Code) of the legal process received by the DOD section
5520a agent with respect to that individual.
(b) DEFINITIONS.—For purposes of this section:
(1) DOD SECTION
459
AGENT.—The term
‘‘DOD section 459 agent’’ means the agent or
agents designated by the Secretary of Defense under
subsection (c)(1)(A) of section 459 of the Social Se-
curity Act (42 U.S.C. 659) to receive orders and ac-
cept service of process in matters related to child
support or alimony.
(2) SECTION 459 NOTICE.—The term ‘‘section
459 notice’’ means, with respect to the Department
of Defense, the notice required by subsection
(c)(2)(A) of section 459 of the Social Security Act
(42 U.S.C. 659) to be sent to an individual in writ-
ing upon the receipt by the DOD section 459 agent
of notice or service with respect to the individual’s
child support or alimony payment obligations.
(3) DOD SECTION
5520A
AGENT.—The term
‘‘DOD section 5520a agent’’ means a person who is
designated by law or regulation to accept service of
process to which the Department of Defense is sub-
ject under section 5520a of title 5, United States
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Code (including the regulations promulgated under
subsection (k) of that section).
(4) SECTION 5520A NOTICE.—The term ‘‘section
5520a notice’’ means, with respect to the Depart-
ment of Defense, the notice required by subsection
(c) of section 5520a of title 5, United States Code,
to be sent in writing to an employee (or, pursuant
to the regulations promulgated under subsection (k)
of that section, to a member of the Armed Forces)
upon the receipt by the DOD section 5520a agent
of legal process covered by that section.
(c) ALTERNATIVE REQUIREMENTS.—The informa-
tion referred to in subsection (a) that is to be included
as part of a section 459 notice or section 5520a notice
sent to an individual (in lieu of sending with that notice
a copy of the notice or service received by the DOD section
459 agent or the DOD section 5520a agent) is the follow-
ing:
(1) A description of the pertinent court order,
notice to withhold, or other order, process, or inter-
rogatory received by the DOD section 459 agent or
the DOD section 5520a agent.
(2) The identity of the court or judicial forum
involved and (in the case of a notice or process con-
cerning the ordering of a support or alimony obliga-
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tion) the case number, the amount of the obligation,
and the name of the beneficiary.
(3) Information on how the individual may ob-
tain from the Department of Defense a copy of the
notice, service, or legal process, including an address
and telephone number that the individual may be
contact for the purpose of obtaining such a copy.
(d) REPORT.—Not later than April 1, 2001, the Sec-
retary shall submit to Congress a report describing the
experience of the Department of Defense under the au-
thority provided by this section. The report shall include
the following:
(1) The number of section 459 notices provided
by the DOD section 459 agent during the period the
authority provided by this section was in effect.
(2) The number of individuals who requested
the DOD section 459 agent to provide to them a
copy of the actual notice or service.
(3) Any complaint the Secretary received by
reason of not having provided the actual notice or
service in the section 459 notice.
(4) The number of section 5520a notices pro-
vided by the DOD section 5520a agent during the
period the authority provided by this section was in
effect.
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(5) The number of individuals who requested
the DOD section 5520a agent to provide to them a
copy of the actual legal process.
(6) Any complaint the Secretary received by
reason of not having provided the actual legal proc-
ess in the section 5520a notice.
SEC. 1043. TRAINING OF SPECIAL OPERATIONS FORCES
WITH FRIENDLY FOREIGN FORCES.
(a) TRAINING EXPENSES FOR WHICH PAYMENT MAY
BE MADE.—Subsection (a)(1) of section 2011 of title 10,
United States Code, is amended by striking out ‘‘and
other security forces’’.
(b) PURPOSE OF TRAINING.—Subsection (b) of such
section is amended by striking out ‘‘primary’’.
(c) REGULATIONS.—Subsection (c) of such section is
amended by inserting after the first sentence the following
new sentence: ‘‘The regulations shall require that training
activities may be carried out under this section only with
the prior approval of the Secretary of Defense.’’.
(d) ELEMENTS OF ANNUAL REPORT.—Subsection (e)
of such section is amended by adding at the end the follow-
ing new paragraphs:
‘‘(5) A summary of the expenditures under this
section resulting from the training for which ex-
penses were paid under this section.
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‘‘(6) A discussion of the unique military train-
ing benefit to United States special operations forces
derived from the training activities for which ex-
penses were paid under this section.’’.
SEC. 1044. PROHIBITION ON ASSIGNMENT OF UNITED
STATES FORCES TO UNITED NATIONS RAP-
IDLY DEPLOYABLE MISSION HEADQUARTERS.
No funds available to the Department of Defense
may be used to assign or detail any member of the Armed
Forces to duty with the United Nations Rapidly
Deployable Mission Headquarters (or any similar United
Nations military operations headquarters).
SEC. 1045. CLARIFICATION OF STATE AUTHORITY TO TAX
COMPENSATION PAID TO CERTAIN EMPLOY-
EES.
(a) LIMITATION ON STATE AUTHORITY TO TAX COM-
PENSATION PAID TO INDIVIDUALS PERFORMING SERV-
ICES AT FORT CAMPBELL, KENTUCKY.—
(1) IN GENERAL.—Chapter 4 of title 4, United
States Code, is amended by adding at the end the
following:
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‘‘§ 115. Limitation on State authority to tax com-
pensation paid to individuals performing
services at Fort Campbell, Kentucky
‘‘Pay and compensation paid to an individual for per-
sonal services at Fort Campbell, Kentucky, shall be sub-
ject to taxation by the State or any political subdivision
thereof of which such employee is a resident.’’.
(2) CONFORMING AMENDMENT.—The table of
sections for chapter 4 of title 4, United States Code,
is amended by adding at the end the following:
‘‘115. Limitation on State authority to tax compensation paid to individuals per-
forming services at Fort Campbell, Kentucky.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to pay and compensa-
tion paid after the date of the enactment of this Act.
(b) CLARIFICATION OF STATE AUTHORITY TO TAX
COMPENSATION PAID TO CERTAIN FEDERAL EMPLOY-
EES.—
(1) IN
GENERAL.—Section 111 of title 4,
United States Code, is amended—
(A) by inserting ‘‘(a) GENERAL RULE.—’’
before ‘‘The United States’’ the first place it
appears; and
(B) by adding at the end the following:
‘‘(b) TREATMENT OF CERTAIN FEDERAL EMPLOY-
EES EMPLOYED AT FEDERAL HYDROELECTRIC FACILI-
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TIES LOCATED ON THE COLUMBIA RIVER.—Pay or com-
pensation paid by the United States for personal services
as an employee of the United States at a hydroelectric
facility—
‘‘(1) which is owned by the United States;
‘‘(2) which is located on the Columbia River;
and
‘‘(3) portions of which are within the States of
Oregon and Washington,
shall be subject to taxation by the State or any political
subdivision thereof of which such employee is a resident.
‘‘(c) TREATMENT OF CERTAIN FEDERAL EMPLOY-
EES EMPLOYED AT FEDERAL HYDROELECTRIC FACILI-
TIES LOCATED ON THE MISSOURI RIVER.—Pay or com-
pensation paid by the United States for personal services
as an employee of the United States at a hydroelectric
facility—
‘‘(1) which is owned by the United States;
‘‘(2) which is located on the Missouri River;
and
‘‘(3) portions of which are within the States of
South Dakota and Nebraska,
shall be subject to taxation by the State or any political
subdivision thereof of which such employee is a resident.’’.
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(2) EFFECTIVE DATE.—The amendment made
by this subsection shall apply to pay and compensa-
tion paid after the date of the enactment of this Act.
SEC. 1046. REQUIREMENT TO PROVIDE BURIAL FLAGS
WHOLLY PRODUCED IN THE UNITED STATES.
(a) REQUIREMENT.—Section 2301 of title 38, United
States Code, is amended by adding at the end the follow-
ing new subsection:
‘‘(f)(1) Any flag furnished pursuant to this section
shall be wholly produced in the United States.
‘‘(2) For the purpose of paragraph (1), the term
‘wholly produced’ means—
‘‘(A) the materials and components of the flag
are entirely grown, manufactured, or created in the
United States;
‘‘(B) the processing (including spinning, weav-
ing, dyeing, and finishing) of such materials and
components is entirely performed in the United
States; and
‘‘(C) the manufacture and assembling of such
materials and components into the flag is entirely
performed in the United States.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to flags furnished by the Sec-
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retary of Veterans Affairs under section 2301 of title 38,
United States Code, after September 30, 1998.
SEC. 1047. INVESTIGATION OF ACTIONS RELATING TO
174TH FIGHTER WING OF NEW YORK AIR NA-
TIONAL GUARD.
(a) INVESTIGATION.—The Inspector General of the
Department of Defense shall investigate the grounding of
the 174th Fighter Wing of the New York Air National
Guard and the subsequent dismissal, demotion, or reas-
signment of 12 decorated combat pilots of that wing.
(b) REPORT.—Not later than 180 days after the date
of the enactment of this Act, the Inspector General shall
submit to the Committee on Armed Services of the Senate
and the Committee on National Security of the House of
Representatives a report describing the results of the in-
vestigation under subsection (a).
SEC. 1048. FACILITATION OF OPERATIONS AT EDWARDS
AIR FORCE BASE, CALIFORNIA.
(a) FACILITATION OF OPERATIONS.—The Secretary
of the Air Force may, in order to facilitate implementation
of the Edwards Air Force Base Alliance Agreement, au-
thorize equipment, facilities, personnel, and other re-
sources available to the Air Force at Edwards Air Force
Base to be used in such manner as the Secretary considers
appropriate for the efficient operation and support of ei-
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ther or both of the organizations that are parties to that
agreement without regard to the provisions of section
1535 of title 31, United States Code (and any regulations
of the Department of Defense prescribed under that sec-
tion).
(b) PRESERVATION
OF FINANCIAL INTEGRITY
OF
FUNDS.—The Secretary shall carry out subsection (a) so
as to preserve the financial integrity of funds appropriated
to the Department of the Air Force and the National Aer-
onautics and Space Administration.
(c) EDWARDS AIR FORCE BASE ALLIANCE AGREE-
MENT.—For purposes of this section, the term ‘‘Edwards
Air Force Base Alliance Agreement’’ means the agreement
entered into in May 1995, between the commander of the
Air Force Flight Test Center and the director of the Dry-
den Flight Research Center of the National Aeronautics
and Space Administration, both of which are located at
Edwards Air Force Base, California, to develop and sus-
tain a working relationship between the two organizations
to improve the efficiency of the operations of both organi-
zations while preserving the unique missions of both orga-
nizations.
(d) DELEGATION.—The authority of the Secretary
under this section may be delegated, at the Secretary’s
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discretion, to the commander of the Air Force Flight Test
Center, Edwards Air Force Base, California.
(e) REPORT.—Not later than May 1, 1999, the Sec-
retary of Defense and the Administrator of the National
Aeronautics and Space Administration shall submit to
Congress a joint report on the implementation of this sec-
tion.
SEC. 1049. SENSE OF THE CONGRESS CONCERNING TAX
TREATMENT OF PRINCIPAL RESIDENCE OF
MEMBERS OF ARMED FORCES WHILE AWAY
FROM HOME ON ACTIVE DUTY.
It is the sense of the Congress that a member of the
Armed Forces should be treated as using property as a
principal residence during any period that the member (or
the member’s spouse) is serving on extended active duty
with the Armed Forces, but only if the member used the
property as a principal residence for any period during or
before the period of extended active duty.
SEC. 1050. OPERATION, MAINTENANCE, AND UPGRADE OF
AIR FORCE SPACE LAUNCH FACILITIES.
Funds appropriated pursuant to the authorizations of
appropriations in this Act for the operation, maintenance,
or upgrade of the Western Space Launch Facilities of the
Department of the Air Force (Program Element 35181F)
and the Eastern Space Launch Facilities of the Depart-
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ment of the Air Force (Program Element 351821F) may
not be obligated for any other purpose.
SEC. 1051. SENSE OF THE CONGRESS CONCERNING NEW
PARENT SUPPORT PROGRAM AND MILITARY
FAMILIES.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that—
(1) the New Parent Support Program that was
begun as a pilot program of the Marine Corps at
Camp Pendleton, California, has been an effective
tool in curbing family violence within the military
community;
(2) such program is a model for future pro-
grams throughout the Marine Corps, the Navy, and
the Army; and
(3) in light of the pressures and strains placed
upon military families and the benefits of the New
Parent Support Program in helping these high ‘‘at-
risk’’ families, the Department of Defense should
seek ways to ensure that in future fiscal years funds
are made available for those programs for each of
the Armed Forces in amounts sufficient to meet re-
quirements for those programs.
(b) REPORT.—Not later than 120 days after the date
of the enactment of this Act, the Secretary of Defense
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shall submit to Congress a report on the New Parent Sup-
port Program of the Department of Defense. The Sec-
retary shall include in the report the following:
(1) A description of how the Army, Navy, Air
Force, and Marine Corps are each implementing a
New Parent Support Program and how each such
program is organized.
(2) A description of how the implementation of
programs for the Army, Navy, and Air Force com-
pare to the fully implemented Marine Corps pro-
gram.
(3) The number of installations that each serv-
ice has scheduled to receive support for the New
Parent Support Program.
(4) The number of installations delayed in pro-
viding the program.
(5) The number of programs terminated.
(6) The number of programs with reduced sup-
port.
(7) The funding provided for those programs
for each of the four services for each of fiscal years
1994 through 1998 and the amount projected to be
provided for those programs for fiscal year 1999
and, if the amount provided for any of those pro-
grams for any such year is less that the amount
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needed to fully fund for that program for that year,
an explanation of the reasons for the shortfall.
TITLE XI—DEPARTMENT OF
DEFENSE CIVILIAN PERSONNEL
SEC. 1101. AUTHORITY FOR RELEASE TO COAST GUARD OF
DRUG TEST RESULTS OF CIVIL SERVICE
MARINERS OF THE MILITARY SEALIFT COM-
MAND.
(a) IN GENERAL.—Chapter 643 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 7479. Civil service mariners of Military Sealift
Command: release of drug test results to
Coast Guard
‘‘(a) RELEASE OF DRUG TEST RESULTS TO COAST
GUARD.—The Secretary of the Navy may release to the
Commandant of the Coast Guard the results of a drug
test of any employee of the Department of the Navy who
is employed in any capacity on board a vessel of the Mili-
tary Sealift Command. Any such release shall be in ac-
cordance with the standards and procedures applicable to
the disclosure and reporting to the Coast Guard of drug
tests results and drug test records of individuals employed
on vessels documented under the laws of the United
States.
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‘‘(b) WAIVER.—The results of a drug test of an em-
ployee may be released under subsection (a) without the
prior written consent of the employee that is otherwise re-
quired under section 503(e) of the Supplemental Appro-
priations Act, 1987 (5 U.S.C. 7301 note).’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘7479. Civil service mariners of Military Sealift Command: release of drug test
results to Coast Guard.’’.
SEC. 1102. LIMITATIONS ON BACK PAY AWARDS.
(a) In General.—Section 5596(b) of title 5, United
States Code, is amended—
(1) by redesignating paragraph (4) as para-
graph (5); and
(2) by inserting after paragraph (3) the follow-
ing new paragraph:
‘‘(4) The pay, allowances, or differentials granted
under this section for the period for which an unjustified
or unwarranted personnel action was in effect shall not
exceed that authorized by the applicable law, rule, regula-
tions, or collective bargaining agreement under which the
unjustified or unwarranted personnel action is found, ex-
cept that in no case may pay, allowances, or differentials
be granted under this section for a period beginning more
than 6 years before the date of the filing of a timely appeal
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or, absent such filing, the date of the administrative deter-
mination.’’.
(b) CONFORMING AMENDMENT.—Section 7121 of
title 5, United States Code, is amended by adding at the
end the following new subsection:
‘‘(h) Settlements and awards under this chapter shall
be subject to the limitations in section 5596(b)(4) of this
title.’’.
SEC. 1103. RESTORATION OF ANNUAL LEAVE ACCUMU-
LATED BY CIVILIAN EMPLOYEES AT INSTAL-
LATIONS IN THE REPUBLIC OF PANAMA TO
BE CLOSED PURSUANT TO THE PANAMA
CANAL TREATY OF 1977.
Section 6304(d)(3)(A) of title 5, United States Code,
is amended by inserting ‘‘the closure of an installation of
the Department of Defense in the Republic of Panama
in accordance with the Panama Canal Treaty of 1977,’’
after ‘‘2687 note) during any period,’’.
SEC. 1104. REPEAL OF PROGRAM PROVIDING PREFERENCE
FOR EMPLOYMENT OF MILITARY SPOUSES IN
MILITARY CHILD CARE FACILITIES.
Section 1792 of title 10, United States Code, is
amended—
(1) by striking out subsection (d); and
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(2) by redesignating subsection (e) as sub-
section (d).
SEC. 1105. ELIMINATION OF RETAINED PAY AS BASIS FOR
DETERMINING 
LOCALITY-BASED 
ADJUST-
MENTS.
Section 5302(8)(B) of title 5, United States Code,
is amended by inserting ‘‘(except a rate retained under
subsection (a)(2) of that section)’’ after ‘‘section 5363’’.
SEC. 1106. OBSERVANCE OF CERTAIN HOLIDAYS AT DUTY
POSTS OUTSIDE THE UNITED STATES.
Section 6103(b) of title 5, United States Code, is
amended by inserting after paragraph (2) the following
new paragraph:
‘‘(3) Instead of a holiday that is designated
under subsection (a) to occur on a Monday, for an
employee at a duty post outside the United States
whose basic workweek is other than Monday through
Friday, and for whom Monday is a regularly sched-
uled workday, the legal public holiday is the first
workday of the workweek in which the Monday des-
ignated for the observance of such holiday under
subsection (a) occurs.’’.
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TITLE XII—MATTERS RELATING
TO OTHER NATIONS
SEC. 1201. LIMITATION ON FUNDS FOR PEACEKEEPING IN
THE 
REPUBLIC 
OF 
BOSNIA 
AND
HERZEGOVINA.
(a) LIMITATION.—The Secretary of Defense may not
expend from funds appropriated to the Department of De-
fense for fiscal year 1999 more than $1,858,600,000 for
the purpose of providing for United States participation
in Bosnia peacekeeping operations.
(b) EMERGENCY EXCEPTION.—The Secretary may
increase the amount under subsection (a) by not more
than $100,000,000 for the sole purpose of safeguarding
United States forces in the event of hostilities, imminent
hostilities, or other grave danger to their well-being. Such
an increase may become effective only upon submission by
the Secretary to Congress of a certification that such
grave danger exists and that such additional funds are re-
quired to meet immediate security threats.
(c) REPORT.—Not later than April 1, 1999, the Sec-
retary of Defense shall submit to Congress a report with
respect to United States participation in Bosnia peace-
keeping operations. The report shall provide a detailed
projection of any additional funding that will be required
by the Department of Defense to meet mission require-
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ments for such operations for the remainder of fiscal year
1999.
(d) PRESIDENTIAL AUTHORITY.—Nothing in this
section shall be deemed to restrict the authority of the
President under the Constitution to protect the lives of
United States citizens.
(e) BOSNIA PEACEKEEPING OPERATIONS.—For pur-
poses of subsection (a), the term ‘‘Bosnia peacekeeping
operations’’ means the operation designated as Operation
Joint Force, the operation designated as Operation Joint
Endeavor, and any other operation under which United
States military forces participate in peacekeeping or peace
enforcement activities in the Republic of Bosnia and
Herzegovina and any activity that is directly related to
the support of any such operation.
SEC. 1202. REPORTS ON THE MISSION OF UNITED STATES
FORCES 
IN 
REPUBLIC 
OF 
BOSNIA 
AND
HERZEGOVINA.
(a) FINDINGS.—Congress finds the following:
(1) In section 1202(1) of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law
105–85; 111 Stat. 1929; approved November 18,
1997), it was stated to be the sense of the Congress
that United States ground combat forces should not
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participate in a follow-on force in the Republic of
Bosnia and Herzegovina after June 1998.
(2) On December 16, 1997, the President an-
nounced his support for the continued deployment of
United States ground combat forces in the Republic
of Bosnia and Herzegovina after June 30, 1998, as
part of a multinational peacekeeping force led by the
North Atlantic Treaty Organization (NATO).
(3) The President’s decision to extend the pres-
ence of United States ground combat forces in the
Republic of Bosnia and Herzegovina has changed
the mission of those forces in a fundamental
manner.
(4) The President has in effect committed
United States ground combat forces in the Republic
of Bosnia and Herzegovina to providing a secure en-
vironment for complete implementation of the civil-
ian provisions of the Dayton Accords.
(5) The Administration has not specified how
long such an achievement will take and, therefore,
the mission of United States ground combat forces
in the Republic of Bosnia and Herzegovina is of in-
definite duration.
(b) ANNUAL
PRESIDENTIAL
REPORT.—(1) The
President shall submit to Congress an annual report on
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the presence of United States ground combat forces in the
Republic of Bosnia and Herzegovina. Each such report
shall include the following:
(A) The President’s assessment of progress to-
ward the full implementation of the civilian goals of
the Dayton Accord, as specified in subsection (c).
(B) The expected duration of the deployment of
United States ground combat forces in the Republic
of Bosnia and Herzegovina in support of implemen-
tation of those goals.
(C) The percentage of those goals that have
been completed as of the date of the report, the per-
centage that are expected to be completed within the
next reporting period, and the expected time for
completion of the remaining tasks.
(2) The first report under this subsection shall be
submitted not later than 90 days after the date of the
enactment of this Act, and subsequent reports shall be
submitted at yearly intervals thereafter. The requirement
to submit an annual report under this subsection termi-
nates upon the withdrawal of all United States ground
combat forces from the Republic of Bosnia and
Herzegovina.
(c) BASIS
FOR ASSESSMENT
OF PROGRESS.—For
purposes of subsection (b)(1)(A), the President shall as-
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sess whether progress is being made toward implementa-
tion of the civilian goals of the Dayton Accords based upon
assessment of the following goals and associated matters:
(1) Accomplishment of military stability, as
measured by—
(A) the maintenance of the cease-fire be-
tween the former warring parties;
(B) the continued cantonment of heavy
weapons and the observance of arms limita-
tions;
(C) the disbanding of special police;
(D) the termination of covert support to
the Srpska Demokratska Stranka party by the
Federal Republic of Yugoslavia; and
(E) similar measures.
(2) Police and judicial reform, as measured
by—
(A) the restructuring and ethnic integra-
tion of local police;
(B) completion of human rights training
by local police forces;
(C) the demonstrated ability of local police
to deal effectively and impartially with civil dis-
turbances and disorder;
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(D) the implementation of an effective ju-
dicial reform program; and
(E) similar measures.
(3) Creation and implementation of effective
national institutions untainted by ethnic separatism,
as measured by—
(A) the dissolution of previously outlawed
institutions;
(B) a functioning customs service with na-
tional control over customs revenues;
(C) transparency in national budgets and
disbursements; and
(D) similar measures.
(4) Media reform, as measured by—
(A) the divestiture of control of broadcast
networks from the control of political parties;
(B) opposition party access to media;
(C) the availability of alternative and inde-
pendent media throughout the Republic of Bos-
nia and Herzegovina; and
(D) similar measures.
(5) Democratization and reform of the electoral
process, as measured by—
(A) transparent functioning of local, entity,
and national governments;
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(B) acceptance of binding arbitration for
the implementation of results in contested local
elections;
(C) modification of electoral laws to meet
international and Organization for Security and
Cooperation in Europe (OSCE) standards;
(D) the free and fair conduct of the Sep-
tember 1998 national elections and subsequent
elections; and
(E) similar measures.
(6) Return of refugees, as measured by—
(A) compliance of entity property laws with
the Dayton Accords;
(B) participation by entity governments in
orderly cross-ethnic returns;
(C) protection by local police of returnees;
(D) acceptance of substantial numbers of
returned refugees in major cities; and
(E) similar measures.
(7) Resolution of the status of Brcko, as meas-
ured by—
(A) the implementation of local election re-
sults;
(B) the functioning of an ethnically inte-
grated police force;
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(C) ethnic reintegration of Brcko and the
surrounding region; and
(D) similar measures.
(8) Compliance of persons indicted for war
crimes by the International Tribunal for the Former
Yugoslavia, as measured by—
(A) the termination of political, military,
and media control by war criminals;
(B) the assistance of local authorities in
apprehension of indictees;
(C) the cooperation of entity justice estab-
lishments in cooperating with the Tribunal; and
(D) similar measures.
(9) The ability of international organizations to
carry out their functions within the Republic of Bos-
nia and Herzegovina without military support, as
measured by—
(A) the ability of local authorities to carry
out demining programs;
(B) the ability of the Office of the High
Representative to enforce inter-entity agree-
ments without accompanying military shows of
force; and
(C) similar measures.
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(10) Economic reconstruction and recovery, as
measured by—
(A) local currency circulating freely and its
use in official transactions;
(B) an agreement reached on a permanent
national currency in use in all entities;
(C) the creation of privatization laws con-
sistent with the Dayton Accords;
(D) government control over sources of
revenue;
(E) substantial repair and functioning of
major infrastructure elements;
(F) an in-place International Monetary
Fund program; and
(G) similar measures.
(d) SECRETARY
OF DEFENSE REPORT.—(1) Not
later than December 15, 1998, the Secretary of Defense
shall submit to the congressional defense committees a re-
port on the effects of military operations in the Republic
of Bosnia and Herzegovina and the Balkans region on the
capabilities of United States military forces and, in par-
ticular, on the capability of United States military forces
to conduct successfully two nearly simultaneous major the-
ater wars as specified in current Defense Planning Guid-
ance and in accordance with the deployment timelines
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called for in the war plans of the commanders of unified
combatant commands.
(2) Whenever the number of United States ground
combat forces in the Republic of Bosnia and Herzegovina
increases or decreases by 10 percent or more compared
to the number of such forces as of the most recent pre-
vious report under this subsection, the Secretary shall sub-
mit an additional report as specified in paragraph (1). Any
such additional report shall be submitted within 30 days
of the date on which the requirement to submit the report
becomes effective under the preceding sentence.
(3) The Secretary shall include in each report under
this subsection information with respect to the effects of
military operations in the Republic of Bosnia and
Herzegovina and the Balkans region on the capabilities
of United States military forces to conduct successfully
two nearly simultaneous major theater wars as specified
in current Defense Planning Guidance and in accordance
with the deployment timelines called for in the war plans
of the commanders of unified combatant commands. Such
information shall include information on the effects of
those operations upon anticipated deployment plans for
major theater wars in Southwest Asia or on the Korean
peninsula including the following:
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(A) Deficiencies or delays in deployment of
strategic lift, logistics support and infrastructure,
ammunition (including precision guided munitions)
support forces, intelligence assets, follow-on forces
used for planned counteroffensives, and similar
forces.
(B) Additional planned reserve component mo-
bilization, including specific units to be ordered to
active duty and required dates for activation of pres-
idential call-up authority.
(C) Specific plans and timelines for redeploy-
ment of United States forces from the Republic of
Bosnia and Herzegovina, the Balkans region, or sup-
porting forces in the region, to both the first and
second major theater war.
(D) Preventative actions or deployments involv-
ing United States forces in the Republic of Bosnia
and Herzegovina and the Balkans region that would
be taken in the event of a single theater war to deter
the outbreak of a second theater war.
(E) Specific plans and timelines to replace
forces deployed to the Republic of Bosnia and
Herzegovina, the Balkans region, or the surrounding
region to maintain United States military presence.
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(F) An assessment, undertaken in consultation
with the Chairman of the Joint Chiefs of Staff and
the commanders of the unified combatant com-
mands, of the level of increased risk to successful
conduct of the major theater wars and the mainte-
nance of security and stability in the Republic of
Bosnia and Herzegovina and the Balkans region, by
the requirement to redeploy forces from Bosnia and
the Balkans in the event of a major theater war.
(e) DEFINITION OF DAYTON ACCORDS.—For pur-
poses of this section, the term ‘‘Dayton Accords’’ means
the General Framework Agreement for Peace in Bosnia
and Herzegovina, initialed by the parties in Dayton, Ohio,
on November 21, 1995, and signed in Paris on December
14, 1995.
SEC. 1203. REPORT ON MILITARY CAPABILITIES OF AN EX-
PANDED NATO ALLIANCE.
(a) REPORT.—The Secretary of Defense shall pre-
pare a report, in both classified and unclassified form, on
the planned future military capabilities of the North At-
lantic Treaty Organization (NATO) in light of the pro-
posed inclusion of Poland, the Czech Republic, and Hun-
gary in the NATO alliance. The report shall set forth—
(1) the tactical, operational, and strategic
issues that would be raised by the inclusion of Po-
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land, the Czech Republic, and Hungary in the
NATO alliance;
(2) the required improvements to common alli-
ance military assets that would result from the in-
clusion of those nations in the alliance;
(3) the planned improvements to national capa-
bilities of current NATO members that would be re-
quired by reason of the inclusion of those nations in
the alliance;
(4) the planned improvements to national capa-
bilities of the military forces of those candidate
member nations; and
(5) the additional requirements that would be
imposed on the United States by NATO expansion.
(b) MATTERS TO BE INCLUDED.—The report shall
include the following:
(1) An assessment of the tactical and oper-
ational capabilities of the military forces of each of
the candidate member nations.
(2) An assessment of the capability of each can-
didate member nation to provide logistical, command
and control, and other vital infrastructure required
for alliance defense (as specified in Article V of the
NATO Charter), including a description in general
terms of alliance plans for reinforcing each can-
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didate member nation during a crisis or war and de-
tailing means for deploying both United States and
other NATO forces from current member states and
from the continental United States or other United
States bases worldwide and, in particular, describing
plans for ground reinforcement of Hungary.
(3) An assessment of the ability of current and
candidate alliance members to deploy and sustain
combat forces in alliance defense missions conducted
in the territory of any of the candidate member na-
tions, as specified in Article V of the NATO Char-
ter.
(4) A description of projected defense programs
through 2009 (shown on an annual basis and cumu-
latively) of each current and candidate alliance mem-
ber nation, including planned investments in capa-
bilities relevant to Article V alliance defense and po-
tential alliance contingency operations and showing
both planned national efforts as well as planned alli-
ance common efforts and describing any disparities
in investments by current or candidate alliance
member nations.
(5) A detailed comparison and description of
any disparities in scope, methodology, assessments
of common alliance or national responsibilities, or
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any other factor related to alliance capabilities be-
tween (A) the report on alliance expansion costs pre-
pared by the Department of Defense (in the report
submitted to Congress in February 1998 entitled
‘‘Report to the Congress on the Military Require-
ments and Costs of NATO Enlargement’’), and (B)
the report on alliance expansion costs prepared by
NATO collectively and referred to as the ‘‘NATO es-
timate’’, issued at Brussels in November 1997.
(6) Any other factor that, in the judgment of
the Secretary of Defense, bears upon the strategic,
operational, or tactical military capabilities of an ex-
panded NATO alliance.
(c) SUBMISSION OF REPORT.—The report shall be
submitted to Congress not later than March 15, 1999.
SEC. 
1204. 
ONE-YEAR 
EXTENSION 
OF 
COUNTER-
PROLIFERATION 
AUTHORITIES 
FOR 
SUP-
PORT OF UNITED NATIONS SPECIAL COMMIS-
SION ON IRAQ.
(a) AMOUNT
AUTHORIZED
FOR
FISCAL
YEAR
1999.—The total amount of assistance for fiscal year
1999 provided by the Secretary of Defense under section
1505 of the Weapons of Mass Destruction Control Act of
1992 (22 U.S.C. 5859a) that is provided in the form of
funds, including funds used for activities of the Depart-
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ment of Defense in support of the United Nations Special
Commission on Iraq, may not exceed $15,000,000.
(b) EXTENSION OF AUTHORITY TO PROVIDE ASSIST-
ANCE.—Subsection (f) of section 1505 of the Weapons of
Mass Destruction Control Act of 1992 (22 U.S.C. 5859a)
is amended by striking out ‘‘1998’’ and inserting in lieu
thereof ‘‘1999’’.
SEC. 1205. REPEAL OF LANDMINE MORATORIUM.
Section 580 of the Foreign Operations Appropria-
tions Act, 1996 (Public Law 104–107; 110 Sat 751), is
repealed.
SEC. 1206. SENSE OF THE CONGRESS.
It is the sense of the Congress that—
(1) United States business interests must not
be placed above United States national security in-
terests;
(2) at the Presidential summit meeting to be
held in the People’s Republic of China in June of
1998, the United States should not—
(A) support membership of the People’s
Republic of China in the Missile Technology
Control Regime;
(B) agree to issue any blanket waiver of
the suspensions contained in section 902 of the
Foreign Relations Authorization Act, Fiscal
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Years 1990 and 1991 (Public Law 101-246),
regarding the export of satellites of United
States origin intended for launch from a launch
vehicle owned by the People’s Republic of
China;
(C) agree to increase the number of
launches of satellites to geosynchronous orbit by
the People’s Republic of China above the num-
ber contained in Article II(B)(ii) of the 1995
Memorandum of Agreement Between the Gov-
ernment of the United States of America and
the Government of the People’s Republic of
China Regarding International Trade in Com-
mercial Launch Services;
(D) support any cooperative project with
the People’s Republic of China to design or
manufacture satellites;
(E) enter into any new scientific, technical,
or other agreements, or amend any existing sci-
entific, technical, or other agreements, with the
People’s Republic of China involving space or
missile-related technology;
(F) agree to any arms control initiative
that cannot be effectively verified, including any
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initiative relating to detargeting of strategic of-
fensive missiles; or
(G) support any increase in the number or
frequency of military-to-military contacts be-
tween the United States and the People’s Re-
public of China;
(3) the decision of the executive branch in 1998
to issue a waiver allowing the export of satellite
technology to the People’s Republic of China was not
in the national interest of the United States, given
the ongoing criminal investigation by the Justice De-
partment of the transfer in 1996 of satellite tech-
nology to that country;
(4) the executive branch should ensure that
United States law regarding the export of satellites
to the Peoples Republic of China is enforced and
that the criminal investigation described in para-
graph (3) proceeds with all due dispatch; and
(5) the President should indefinitely suspend
the export of satellites of United States origin to the
People’s Republic of China, including those satellites
licensed in February 1998 as part of the Chinasat-
8 program.
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SEC. 1207. INVESTIGATIONS OF SATELLITE LAUNCH FAIL-
URES.
(a) PARTICIPATION
IN INVESTIGATIONS.—In the
event of the failure of a launch from the People’s Republic
of China of a satellite of United States origin, no United
States person may participate in any subsequent inves-
tigation of the failure.
(b) DEFINITION.—As used in this section, the term
‘‘United States person’’ has the meaning given that term
in section 16 of the Export Administration Act of 1979,
and includes any officer or employee of the Federal Gov-
ernment or of any other government.
SEC. 1208. PROHIBITION ON EXPORTS OF MISSILE EQUIP-
MENT AND TECHNOLOGY TO CHINA.
No missile equipment or technology (as defined in
section 74 of the Arms Export Control Act (22 U.S.C.
2797c)) may be exported to the People’s Republic of
China.
SEC. 1209. PROHIBITION ON EXPORTS AND REEXPORTS OF
SATELLITES TO CHINA.
(a) IN GENERAL.—No satellites of United States ori-
gin (including commercial satellites and satellite compo-
nents) may be exported or reexported to the People’s Re-
public of China.
(b) PROHIBITION WITH RESPECT TO INFORMATION,
EQUIPMENT, AND TECHNOLOGY.—No information, equip-
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ment, or technology that could be used in the acquisition,
design, development (including codevelopment), or produc-
tion (including coproduction) of any satellite or launch ve-
hicle may be exported or reexported to the People’s Repub-
lic of China.
(c) APPLICABILITY.—Subsections (a) and (b) apply
to any satellite, information, equipment, or technology
that as of the date of the enactment of this Act has not
been exported or reexported to the People’s Republic of
China, whether or not an export license for such export
or reexport has been approved as of such date.
SEC. 1210. PROHIBITION ON RESTRICTION OF ARMED
FORCES UNDER KYOTO PROTOCOL TO THE
UNITED NATIONS FRAMEWORK CONVENTION
ON CLIMATE CHANGE.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, no provision of the Kyoto Protocol to the
United Nations Framework Convention on Climate
Change, or any regulation issued pursuant to such proto-
col, shall restrict the procurement, training, or operation
and maintenance of the United States Armed Forces.
(b) WAIVER.—A provision of law may not be con-
strued as modifying or superseding the provisions of sub-
section (a) unless that provision of law—
(1) specifically refers to this section; and
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(2) specifically states that such provision of law
modifies or supersedes the provisions of this section.
SEC. 1211. LIMITATION ON PAYMENTS FOR COST OF NATO
EXPANSION.
(a) The amount spent by the United States as its
share of the total cost to North Atlantic Treaty Organiza-
tion member nations of the admission of new member na-
tions to the North American Treaty Organization may not
exceed 10 percent of the cost of expansion or a total of
$2,000,000,000, whichever is less, for fiscal years 1999
through 2011.
(b) If at any time during the period specified in sub-
section (a), the United States’ share of the total cost of
expanding the North Atlantic Treaty Organization exceeds
10 percent, no further United States funds may be ex-
pended for the costs of such expansion until that percent-
age is reduced to below 10 percent.
SEC. 1212. COMMODITY JURISDICTION FOR SATELLITE EX-
PORTS.
(a) CONTROL ON MUNITIONS LIST.—All satellites of
United States origin, including commercial satellites and
satellite components, shall be placed on the United States
Munitions List, and the export of such satellites shall be
controlled under the Arms Export Control Act, effective
60 days after the date of the enactment of this Act.
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(b) REGULATIONS.—Regulations to carry out sub-
section (a) shall be issued within 60 days after the date
of the enactment of this Act.
SEC. 1213. RELEASE OF EXPORT INFORMATION HELD BY
THE DEPARTMENT OF COMMERCE FOR PUR-
POSE OF NATIONAL SECURITY ASSESSMENTS.
(a) RELEASE OF EXPORT INFORMATION.—The Sec-
retary of Commerce shall transmit any information relat-
ing to exports that is held by the Department of Com-
merce and is requested by the officials designated in sub-
section (b) for the purpose of assessing national security
risks. The Secretary of Commerce shall transmit such in-
formation within 5 days after receiving a written request
for such information. Information referred to in this sec-
tion includes—
(1) export licenses, and information on exports
that were carried out under an export license issued
by the Department of Commerce; and
(2) information collected by the Department of
Commerce on exports from the United States that
were carried out without an export license.
(b) REQUESTING OFFICIALS.—The officials referred
to in subsection (a) are the Director of Central Intel-
ligence, the Secretary of Defense, and the Secretary of En-
ergy. The Director of Central Intelligence, the Secretary
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of Defense, and the Secretary of Energy may delegate to
other officials within their respective agency and depart-
ments the authority to request information under sub-
section (b).
SEC. 1214. EXECUTION OF OBJECTION AUTHORITY WITHIN
THE DEPARTMENT OF DEFENSE.
Section 1211 of the National Defense Authorization
Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat.
1932) is amended by adding at the end the following new
subsection:
‘‘(g) DELEGATION OF OBJECTION AUTHORITY WITH-
IN THE DEPARTMENT OF DEFENSE.—For the purposes
of the Department of Defense, the authority to issue an
objection referred to in subsection (a) shall be executed
for the Secretary of Defense by an individual at the Assist-
ant Secretary level within the office of the Under Sec-
retary of Defense for Policy. In implementing subsection
(a), the Secretary of Defense shall ensure that Depart-
ment of Defense procedures maximize the ability of the
Department of Defense to be able to issue an objection
within the 10–day period specified in subsection (c).’’.
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SEC. 1215. TRANSFER OF EXCESS UH-1 HUEY HELICOPTERS
AND AH-1 COBRA HELICOPTERS TO FOREIGN
COUNTRIES.
(a) IN GENERAL.—(1) Chapter 153 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 2581. Transfer of excess UH-1 Huey helicopters
and AH-1 Cobra helicopters to foreign
countries
‘‘(a) REQUIREMENTS.—The Secretary of Defense
shall make all reasonable efforts to ensure that any excess
UH-1 Huey helicopter or AH-1 Cobra helicopter that is
to be transferred on a grant or sales basis to a foreign
country for the purpose of flight operations for such coun-
try shall meet the following requirements:
‘‘(1) Prior to such transfer, the helicopter re-
ceives, to the extent necessary, maintenance and re-
pair equivalent to the depot-level maintenance and
repair, as defined in section 2460 of this title, that
such helicopter would need were the helicopter to re-
main in operational use with the armed forces of the
United States.
‘‘(2) Maintenance and repair described in para-
graph (1) is performed in the United States.
‘‘(b) EXCEPTION.—The requirements of subsection
(a) shall not apply with respect to salvage helicopters pro-
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vided to the foreign country solely as a source for spare
parts.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘2581. Transfer of excess UH-1 Huey helicopters and AH-1 Cobra helicopters
to foreign countries.’’.
(b) EFFECTIVE DATE.—Section 2581 of title 10,
United States Code, as added by subsection (a), shall
apply with respect to the transfer of a UH-1 Huey heli-
copter or AH-1 Cobra helicopter on or after the date of
the enactment of this Act.
SEC. 1216. NUCLEAR EXPORT REPORTING REQUIREMENT.
The Arms Export Control Act (22 U.S.C. 2751 et
seq.) is amended by adding at the end the following new
chapter:
‘‘CHAPTER 11-NUCLEAR EXPORT
REPORTING
‘‘SEC. 111. REPORTS ON EXPORTS.
‘‘(a) ACTIONS REQUIRING REPORTING.—Unless and
until the conditions set forth in subsection (b) are met—
‘‘(1) no license may be issued for the export
of—
‘‘(A) any production facility or utilization
facility;
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‘‘(B) any source material or special nuclear
material; or
‘‘(C) any component, substance, or item
that has been determined under section 109b.
of the Atomic Energy Act of 1954 to be espe-
cially relevant from the standpoint of export
control because of its significance for nuclear
explosive purposes;
‘‘(2) the United States shall not approve the re-
transfer of any facility, material, item, technical
data, component, or substance described in para-
graph (1); and
‘‘(3) no authorization may be given under sec-
tion 57b.(2) of the Atomic Energy Act of 1954 for
any person to engage, directly or indirectly, in the
production of special nuclear material.
‘‘(b) CONDITIONS.—
‘‘(1) IN GENERAL.—The conditions referred to
in subsection (a) are the following:
‘‘(A) Before the export, retransfer, or ac-
tivity is approved, the appropriate agency shall
transmit to the Committee on International Re-
lations of the House of Representatives and the
Committee on Foreign Relations of the Senate
a report describing such export, retransfer, or
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activity and the basis for any proposed approval
thereof, and, in the case of an authorization de-
scribed in subsection (a)(3), the appropriate
agency shall transmit to the Committee on
Commerce of the House of Representatives a
report describing the activity for which author-
ization is sought and the basis for any proposed
approval thereof. Each report under this sub-
paragraph report shall contain—
‘‘(i) a detailed description of the pro-
posed export, retransfer, or activity, as the
case may be, including a brief description
of the quantity, value, and capabilities of
the export, retransfer, or activity;
‘‘(ii) the name of each contractor ex-
pected to provide the proposed export, re-
transfer, or activity;
‘‘(iii) an estimate of the number of of-
ficers and employees of the United States
Government and of United States civilian
contract personnel expected to be needed
in the recipient country to carry out the
proposed export, retransfer, or activity;
and
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‘‘(iv) a description, including esti-
mated value, from each contractor de-
scribed in clause (ii) of any offset agree-
ments proposed to be entered into in con-
nection with such proposed export, retrans-
fer, or activity (if known on the date of
transmittal of the report), and the pro-
jected delivery dates and end user of the
proposed export, retransfer, or activity;
and
‘‘(v) the extent to which the recipient
country is in compliance with the condi-
tions specified in paragraph (2) of section
129 of the Atomic Energy Act of 1954.
The report transmitted under this subpara-
graph shall be unclassified, unless the public
disclosure thereof would be clearly detrimental
to the security of the United States.
‘‘(B) Unless the President determines that an
emergency exists which requires immediate approval
of the proposed export, retransfer, or activity in the
national security interests of the United States, no
such approval shall be given until at least 30 cal-
endar days after Congress receives the report de-
scribed in subparagraph (A), and shall not be ap-
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proved then if Congress, within that 30-day period,
enacts a joint resolution prohibiting the proposed ex-
port, retransfer, or activity. If the President deter-
mines that an emergency exists that requires imme-
diate approval of the proposed export, retransfer, or
activity in the national security interests of the
United States, thus waiving the requirements of this
paragraph, he shall submit in writing to the Com-
mittee on International Relations of the House of
Representatives and the Committee on Foreign Re-
lations of the Senate a detailed justification for his
determination, including a description of the emer-
gency circumstances that necessitate the immediate
approval of the export, retransfer, or activity, and a
discussion of the national security interests involved.
‘‘(2) CONSIDERATION OF JOINT RESOLUTIONS
IN THE SENATE.—Any joint resolution under para-
graph (1)(B) shall be considered in the Senate in ac-
cordance with the provisions of section 601(b) of the
International Security Assistance and Arms Export
Control Act of 1976.
‘‘(c) PUBLICATION OF UNCLASSIFIED TEXT OF RE-
PORTS.—The appropriate agency shall cause to be pub-
lished in the Federal Register, upon transmittal to the
Committee on International Relations of the House of
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Representatives and the Committee on Foreign Relations
of the Senate, the full unclassified text of each report sub-
mitted pursuant to subsection (b)(1)(A).
‘‘(d) EXCEPTIONS.—The requirements of this section
shall not apply to—
‘‘(1) any export, retransfer, or activity for
which a general license or general authorization is
granted by the appropriate agency; or
‘‘(2) any export or retransfer to, or activity in,
a country that is a member of the Organization for
Economic Cooperation and Development.
‘‘(e) DEFINITIONS.—As used in this section, the
terms ‘production facility’, ‘utilization facility’, ‘source
material’, and ‘special nuclear material’, have the mean-
ings given those terms in section 11 of the Atomic Energy
Act of 1954.’’.
TITLE 
XIII—COOPERATIVE
THREAT 
REDUCTION 
WITH
STATES OF FORMER SOVIET
UNION
SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT RE-
DUCTION PROGRAMS AND FUNDS.
(a) SPECIFICATION OF CTR PROGRAMS.—For pur-
poses of section 301 and other provisions of this Act, Co-
operative Threat Reduction programs are the programs
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specified in subsection (b) of section 406 of title 10,
United States Code (as added by section 1305).
(b) FISCAL YEAR 1999 COOPERATIVE THREAT RE-
DUCTION FUNDS DEFINED.—As used in this title, the
term ‘‘fiscal year 1999 Cooperative Threat Reduction
funds’’ means the funds appropriated pursuant to the au-
thorization of appropriations in section 301 for Coopera-
tive Threat Reduction programs.
SEC. 1302. FUNDING ALLOCATIONS.
(a) IN GENERAL.—Of the fiscal year 1999 Coopera-
tive Threat Reduction funds, not more than the following
amounts may be obligated for the purposes specified:
(1) Except as provided in paragraph (11), for
strategic offensive arms elimination in Russia,
$142,400,000.
(2) Except as provided in paragraph (11), for
strategic nuclear arms elimination in Ukraine,
$47,500,000.
(3) For activities to support warhead dismantle-
ment processing in Russia, $9,400,000.
(4) For activities associated with chemical
weapons destruction in Russia, $35,000,000.
(5) For weapons transportation security in Rus-
sia, $10,300,000.
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(6) For planning, design, and construction of a
storage 
facility 
for 
Russian 
fissile 
material,
$60,900,000.
(7) For weapons storage security in Russia,
$41,700,000.
(8) For development of a cooperative program
with the Government of Russia to eliminate the pro-
duction of weapons grade plutonium at Russian re-
actors, $29,800,000.
(9) For biological weapons proliferation preven-
tion activities in Russia, $2,000,000.
(10) For activities designated as Other Assess-
ments/Administrative Support $7,000,000.
(11) For strategic arms elimination in Russia
or Ukraine, $31,400,000.
(b) LIMITED AUTHORITY TO VARY INDIVIDUAL
AMOUNTS.—(1) If the Secretary of Defense determines
that it is necessary to do so in the national interest, the
Secretary may, subject to paragraphs (2) and (3), obligate
amounts for the purposes stated in any of the paragraphs
of subsection (a) in excess of the amount specified for
those purposes in that paragraph. However, the total
amount obligated for the purposes stated in the para-
graphs in subsection (a) may not by reason of the use of
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the authority provided in the preceding sentence exceed
the sum of the amounts specified in those paragraphs.
(2) An obligation for the purposes stated in any of
the paragraphs in subsection (a) in excess of the amount
specified in that paragraph may be made using the author-
ity provided in paragraph (1) only after—
(A) the Secretary submits to Congress notifica-
tion of the intent to do so together with a complete
discussion of the justification for doing so; and
(B) 15 days have elapsed following the date of
the notification.
(3) The Secretary may not, under the authority pro-
vided in paragraph (1), obligate amounts appropriated for
the purposes stated in any of paragraphs (3) through (10)
of subsection (a) in excess of 115 percent of the amount
stated in those paragraphs.
SEC. 1303. PROHIBITION ON USE OF FUNDS FOR SPECIFIED
PURPOSES.
(a) IN GENERAL.—No fiscal year 1999 Cooperative
Threat Reduction funds, and no funds appropriated for
Cooperative Threat Reduction programs for any prior fis-
cal year and remaining available for obligation, may be
obligated or expended for any of the following purposes:
(1) Conducting with Russia any peacekeeping
exercise or other peacekeeping-related activity.
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(2) Provision of housing.
(3) Provision of assistance to promote environ-
mental restoration.
(4) Provision of assistance to promote job re-
training.
(5) Programs other than the programs specified
in subsection (b) of section 406 of title 10, United
States Code (as added by section 1305).
(b) LIMITATION WITH RESPECT TO DEFENSE CON-
VERSION ASSISTANCE.—None of the funds appropriated
pursuant to this Act may be obligated or expended for the
provision of assistance to Russia or any other state of the
former Soviet Union to promote defense conversion.
SEC. 1304. LIMITATION ON USE OF FUNDS FOR CHEMICAL
WEAPONS DESTRUCTION FACILITY.
No fiscal year 1999 Cooperative Threat Reduction
funds authorized to be obligated in section 1302(a)(4) for
activities associated with chemical weapons destruction in
Russia, and no funds appropriated for Cooperative Threat
Reduction programs for any prior fiscal year and remain-
ing available for obligation, may be used for construction
of a chemical weapons destruction facility.
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SEC. 1305. LIMITATION ON OBLIGATION OF FUNDS FOR A
SPECIFIED PERIOD.
(a) IN GENERAL.—(1) Chapter 20 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 406. Use of Cooperative Threat Reduction program
funds: limitation
‘‘(a) IN GENERAL.—In carrying out Cooperative
Threat Reduction programs during any fiscal year, the
Secretary of Defense may use funds appropriated for
those programs only to the extent that those funds were
appropriated for that fiscal year or for either of the 2 pre-
ceding fiscal years.
‘‘(b) DEFINITION OF COOPERATIVE THREAT REDUC-
TION PROGRAMS.—In this section, the term ‘Cooperative
Threat Reduction programs’ means the following pro-
grams with respect to states of the former Soviet Union:
‘‘(1) Programs to facilitate the elimination, and
the safe and secure transportation and storage, of
nuclear, chemical, and other weapons of mass de-
struction and their delivery vehicles.
‘‘(2) Programs to facilitate the safe and secure
storage of fissile materials derived from the elimi-
nation of nuclear weapons.
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‘‘(3) Programs to prevent the proliferation of
weapons of mass destruction, components, and tech-
nology and expertise related to such weapons.
‘‘(4) Programs to expand military-to-military
and defense contacts.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘406. Use of Cooperative Threat Reduction program funds: limitation.’’.
(b) EFFECTIVE DATE.—The limitation described in
section 406 of title 10, United States Code, as added by
subsection (a), shall apply with respect to fiscal years be-
ginning with fiscal year 1999.
SEC. 1306. REQUIREMENT TO SUBMIT BREAKDOWN OF
AMOUNTS REQUESTED BY PROJECT CAT-
EGORY.
The Secretary of Defense shall submit to Congress
on an annual basis, not later than 30 days after the date
that the President submits to Congress the budget of the
United States Government for the following fiscal year—
(1) a breakdown, with respect to the appropria-
tions requested for Cooperative Threat Reduction
programs for the fiscal year after the fiscal year in
which the breakdown is submitted, of the amounts
requested for each project category under each Co-
operative Threat Reduction program element; and
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(2) a breakdown, with respect to appropriations
for Cooperative Threat Reduction programs for the
fiscal year in which the breakdown is submitted, of
the amounts obligated or expended, or planned to be
obligated or expended, for each project category
under each Cooperative Threat Reduction program
element.
SEC. 1307. LIMITATION ON USE OF FUNDS UNTIL COMPLE-
TION OF FISCAL YEAR 1998 REQUIREMENTS.
(a) USE OF FUNDS FOR PROGRAMS RELATED TO
START II TREATY.—No fiscal year 1999 Cooperative
Threat Reduction funds may be obligated or expended for
strategic offensive arms elimination projects in Russia re-
lated to the START II Treaty (as defined in section
1302(f) of the National Defense Authorization Act for
Fiscal Year 1998 (Public Law 105–85; 111 Stat. 1948))
until 30 days after the date on which the Secretary of
Defense submits to Congress the certification described in
section 1404 of the National Defense Authorization Act
for Fiscal Year 1998 (Public Law 105–85; 111 Stat.
1960).
(b) USE OF FUNDS FOR CHEMICAL WEAPONS DE-
STRUCTION FACILITY.—No fiscal year 1999 Cooperative
Threat Reduction funds may be obligated or expended for
activities relating to a chemical weapons destruction facil-
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ity until 15 days after the date that is the later of the
dates described in section 1405 of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105–
85; 111 Stat. 1960).
(c) USE OF FUNDS FOR DESTRUCTION OF CHEMICAL
WEAPONS.—No funds authorized to be appropriated
under this or any other Act for fiscal year 1999 for Coop-
erative Threat Reduction programs may be obligated or
expended for chemical weapons destruction activities until
the President submits to Congress the written certification
described in section 1406(b) of the National Defense Au-
thorization Act for Fiscal Year 1998 (Public Law 105–
85; 111 Stat. 1961).
(d) USE OF FUNDS FOR STORAGE FACILITY FOR
RUSSIAN FISSILE MATERIAL.—No fiscal year 1999 Coop-
erative Threat Reduction funds may be obligated or ex-
pended for planning, design, or construction of a storage
facility for Russian fissile material until 15 days after the
date that is the later of the dates described in section 1407
of the National Defense Authorization Act for Fiscal Year
1998 (Public Law 105–85; 111 Stat. 1962).
(e) USE OF FUNDS FOR WEAPONS STORAGE SECU-
RITY.—No fiscal year 1999 Cooperative Threat Reduction
funds intended for weapons storage security activities in
Russia may be obligated or expended until 15 days after
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the date that the Secretary of Defense submits to Con-
gress the report on the status of negotiations between the
United States and Russia described in section 1408 of the
National Defense Authorization Act for Fiscal Year 1998
(Public Law 105–85; 111 Stat. 1962).
SEC. 1308. REPORT ON BIOLOGICAL WEAPONS PROGRAMS
IN RUSSIA.
(a) REPORT.—Not later than December 31, 1998,
the Secretary of Defense shall submit to the congressional
defense committees a report, in classified and unclassified
forms, containing—
(1) an assessment of the extent of compliance
by Russia with international agreements relating to
the control of biological weapons; and
(2) a detailed evaluation of the potential politi-
cal and military costs and benefits of collaborative
biological pathogen research efforts by the United
States and Russia.
(b) CONTENT
OF REPORT.—The report required
under subsection (a) shall include the following:
(1) An evaluation of the extent of the control
and oversight by the Government of Russia over the
military and civilian-military biological warfare pro-
grams formerly controlled or overseen by states of
the former Soviet Union.
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(2) The extent and scope of continued biological
warfare research, development, testing, and produc-
tion in Russia, including the sites where such activ-
ity is occurring and the types of activity being con-
ducted.
(3) An assessment of compliance by Russia
with the terms of the Biological Weapons Conven-
tion.
(4) An identification and assessment of the
measures taken by Russia to comply with the obliga-
tions assumed under the Joint Statement on Biologi-
cal Weapons, agreed to by the United States, the
United Kingdom, and Russia on September 14,
1992.
(5) A description of the extent to which Russia
has permitted individuals from the United States or
other countries to visit military and nonmilitary bio-
logical research, development, testing, and produc-
tion sites in order to resolve ambiguities regarding
activities at such sites.
(6) A description of the information provided by
Russia about its biological weapons dismantlement
efforts to date.
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(7) An assessment of the accuracy and com-
prehensiveness of declarations by Russia regarding
its biological weapons activities.
(8) An identification of collaborative biological
research projects carried out by the United States
and Russia for which Cooperative Threat Reduction
funds have been used.
(9) An evaluation of the political and military
utility of prior, existing, and prospective cooperative
biological pathogen research programs carried out
between the United States and Russia, and an as-
sessment of the impact of such programs on increas-
ing Russian military transparency with respect to bi-
ological weapons activities.
(10) An assessment of the political and military
utility of the long-term collaborative program advo-
cated by the National Academy of Sciences in its
October 27, 1997 report, ‘‘Controlling Dangerous
Pathogens: A Blueprint for U.S.-Russian Coopera-
tion’’.
SEC. 1309. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL
WEAPONS PROLIFERATION PREVENTION AC-
TIVITIES IN RUSSIA.
No fiscal year 1999 Cooperative Threat Reduction
funds may be obligated or expended for biological weapons
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proliferation prevention activities in Russia until 15 days
after the date that is the later of the following:
(1) The date on which the Secretary of Defense
submits to Congress a certification that no Coopera-
tive Threat Reduction funds provided for cooperative
research activities at biological research institutes in
Russia have been used—
(A) to support activities that have resulted
in the development of a new strain of anthrax;
or
(B) for any purpose inconsistent with the
objectives of providing such assistance.
(2) The date on which the Secretary submits to
the congressional defense committees notification
that the United States has examined and tested the
new strain of anthrax reportedly developed at the
State Research Center for Applied Microbiology in
Obolensk, Russia.
SEC. 1310. LIMITATION ON USE OF CERTAIN FUNDS FOR
STRATEGIC ARMS ELIMINATION IN RUSSIA
OR UKRAINE.
No fiscal year 1999 Cooperative Threat Reduction
funds authorized to be obligated in section 1302(a)(11)
for strategic arms elimination in Russia or Ukraine may
be obligated or expended until 30 days after the date that
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the Secretary of Defense submits to the congressional de-
fense committees notification on how the Secretary plans
to use such funds.
SEC. 1311. AVAILABILITY OF FUNDS.
Funds appropriated pursuant to the authorization of
appropriations in section 301 for Cooperative Threat Re-
duction programs shall be available for obligation for three
fiscal years.
TITLE XIV—DEFENSE AGAINST
WEAPONS OF MASS DESTRUC-
TION
SEC. 1401. SHORT TITLE.
This title may be cited as the ‘‘Defense Against
Weapons of Mass Destruction Act of 1998’’.
SEC. 1402. FINDINGS.
The Congress finds the following:
(1) Many nations currently possess weapons of
mass destruction and related materials and tech-
nologies, and such weapons are increasingly available
to a variety of sources through legitimate and illegit-
imate means.
(2) The proliferation of weapons of mass de-
struction is growing, and will likely continue despite
the best efforts of the international community to
limit their flow.
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(3) The increased availability, relative afford-
ability, and ease of use of weapons of mass destruc-
tion may make the use of such weapons an increas-
ingly attractive option to potential adversaries who
are not otherwise capable of countering United
States military superiority.
(4) On November 12, 1997, President Clinton
issued an Executive Order stating that ‘‘the pro-
liferation of nuclear, biological, and chemical weap-
ons (‘‘weapons of mass destruction’’) and the means
of delivering such weapons constitutes an unusual
and extraordinary threat to the national security,
foreign policy, and economy of the United States’’
and declaring a national emergency to deal with that
threat.
(5) The Quadrennial Defense Review concluded
that the threat or use of weapons of mass destruc-
tion is a likely condition of future warfare and poses
a potential threat to the United States.
(6) The United States lacks adequate prepared-
ness at the Federal, State, and local levels to re-
spond to a potential attack on the United States in-
volving weapons of mass destruction.
(7) The United States has initiated an effort to
enhance the capability of Federal, State, and local
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governments as well as local emergency response
personnel to prevent and respond to a domestic ter-
rorist incident involving weapons of mass destruc-
tion.
(8) More than 40 Federal departments, agen-
cies, and bureaus are involved in combating terror-
ism, and many, including the Department of De-
fense, the Department of Justice, the Department of
Energy, the Department of Health and Human
Services, and the Federal Emergency Management
Agency, are executing programs to provide civilian
personnel at the Federal, State, and local levels with
training and assistance to prevent and respond to in-
cidents involving weapons of mass destruction.
(9) The Department of Energy has established
a Nuclear Emergency Response Team which is avail-
able to respond to incidents involving nuclear or ra-
diological emergencies.
(10) The Department of Defense has begun to
implement a program to train local emergency re-
sponders in major cities throughout the United
States to prevent and respond to incidents involving
weapons of mass destruction.
(11) The Department of Justice has established
a National Center for Domestic Preparedness at
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Fort McClellan, Alabama, to conduct nuclear, bio-
logical, and chemical preparedness training for Fed-
eral, State, and local officials to enhance emergency
response to incidents involving weapons of mass de-
struction.
(12) Despite these activities, Federal agency
initiatives to enhance domestic preparedness to re-
spond to an incident involving weapons of mass de-
struction are hampered by incomplete interagency
coordination and overlapping jurisdiction of agency
missions, for example:
(A) The Secretary of Defense has proposed
the establishment of 10 Rapid Assessment and
Initial Detection elements, composed of 22 Na-
tional Guard personnel, to provide timely re-
gional assistance to local emergency responders
during an incident involving chemical or biologi-
cal weapons of mass destruction. However, the
precise working relationship between these Na-
tional Guard elements, the Federal Emergency
Management Agency regional offices, and State
and local emergency response agencies has not
yet been determined.
(B) The Federal Emergency Management
Agency, the lead Federal agency for con-
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sequence management in response to a terrorist
incident involving weapons of mass destruction,
has withdrawn from the role of chair of the
Senior Interagency Coordination Group for do-
mestic emergency preparedness, and a successor
agency to chair the Senior Interagency Coordi-
nator has not yet been determined.
(C) In order to ensure effective local re-
sponse capabilities to incidents involving weap-
ons of mass destruction, the Federal Govern-
ment, in addition to providing training, must
concurrently address the need for—
(i) compatible communications capa-
bilities for all Federal, State, and local
emergency responders, which often use dif-
ferent radio systems and operate on dif-
ferent radio frequencies;
(ii) adequate equipment necessary for
response to an incident involving weapons
of mass destruction, and a means to en-
sure that financially lacking localities have
access to such equipment;
(iii) local and regional planning ef-
forts to ensure the effective execution of
emergency response in the event of an inci-
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dent involving a weapon of mass destruc-
tion; and
(iv) increased planning and training
to prepare for emergency response capa-
bilities in port areas and littoral waters.
(D) The Congress is aware that Presi-
dential Decision Directives relating to domestic
emergency preparedness for response to terror-
ist incidents involving weapons of mass destruc-
tion are being considered, but agreement has
not been reached within the executive branch.
Subtitle A—Domestic Preparedness
SEC. 1411. DOMESTIC PREPAREDNESS FOR RESPONSE TO
THREATS OF TERRORIST USE OF WEAPONS
OF MASS DESTRUCTION.
(a) ENHANCED RESPONSE CAPABILITY.—In light of
the continuing potential for terrorist use of weapons of
mass destruction against the United States and the need
to develop a more fully coordinated response to that threat
on the part of Federal, State, and local agencies, the
President shall act to increase the effectiveness at the
Federal, State, and local level of the domestic emergency
preparedness program for response to terrorist incidents
involving weapons of mass destruction by developing an
integrated program that builds upon the program estab-
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lished under title XIV of the National Defense Authoriza-
tion Act for Fiscal Year 1997 (Public Law 104–201; 110
Stat. 2714).
(b) REPORT.—Not later than January 31, 1999, the
President shall submit to Congress a report containing in-
formation on the actions taken at the Federal, State, and
local level to develop an integrated program to prevent and
respond to terrorist incidents involving weapons of mass
destruction.
SEC. 1412. REPORT ON DOMESTIC EMERGENCY PREPARED-
NESS.
Section 1051 of the National Defense Authorization
Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat.
1889) is amended by adding at the end the following new
subsection:
‘‘(c) ANNEX ON DOMESTIC EMERGENCY PRE-
PAREDNESS PROGRAM.—As part of the report sub-
mitted to Congress under subsection (b), the Presi-
dent shall include an annex which provides the fol-
lowing information on the domestic emergency pre-
paredness program for response to terrorist inci-
dents involving weapons of mass destruction (as es-
tablished under title XIV and section 1411 of the
National Defense Authorization Act for Fiscal Year
1999):
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‘‘(1) information on program responsibil-
ities for each participating Federal department,
agency, and bureau;
‘‘(2) a summary of program activities per-
formed during the preceding fiscal year for each
participating Federal department, agency, and
bureau;
‘‘(3) a summary of program obligations
and expenditures during the preceding fiscal
year for each participating Federal department,
agency, and bureau;
‘‘(4) a summary of the program plan and
budget for the current fiscal year for each par-
ticipating Federal department, agency, and bu-
reau;
‘‘(5) the program budget request for the
following fiscal year for each participating Fed-
eral department, agency, and bureau;
‘‘(6) recommendations for improving Fed-
eral, State, and local domestic emergency pre-
paredness to respond to incidents involving
weapons of mass destruction that have been
made by the Advisory Commission on Domestic
Response Capabilities for Terrorism Involving
Weapons of Mass Destruction (as established
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under section 1421 of the National Defense Au-
thorization Act for Fiscal Year 1999), and ac-
tions taken as a result of such recommenda-
tions; and
‘‘(7) requirements regarding additional
program measures and legislative authority for
which 
congressional 
action 
may 
be 
rec-
ommended.’’.
SEC. 1413. PERFORMANCE OF THREAT AND RISK ASSESS-
MENTS.
(a) THREAT AND RISK ASSESSMENTS.—(1) Assist-
ance to Federal, State, and local agencies provided under
the program under section 1411 shall include the perform-
ance of assessments of the threat and risk of terrorist em-
ployment of weapons of mass destruction against cities
and other local areas. Such assessments shall be used by
Federal, State, and local agencies to determine the train-
ing and equipment requirements under this program and
shall be performed as a collaborative effort with State and
local agencies.
(2) The Department of Justice, as lead Federal agen-
cy for crisis management in response to terrorism involv-
ing weapons of mass destruction, shall, through the Fed-
eral Bureau of Investigation, conduct any threat and risk
assessment performed under paragraph (1) in coordina-
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tion with appropriate Federal, State, and local agencies,
and shall develop procedures and guidance for conduct of
the threat and risk assessment in consultation with offi-
cials from the intelligence community.
(3) The President shall identify and make available
the funds necessary to carry out this section.
(b) PILOT TEST.—(1) Before prescribing final proce-
dures and guidance for the performance of threat and risk
assessments under this section, the Attorney General,
through the Federal Bureau of Investigation may, in co-
ordination with appropriate Federal, State, and local
agencies, conduct a pilot test of any proposed method or
model by which such assessments are to be performed.
(2) The pilot test shall be performed in cities or local
areas selected by the Department of Justice, through the
Federal Bureau of Investigation, in consultation with ap-
propriate Federal, State, and local agencies.
(3) The pilot test shall be completed not later than
4 months after the date of the enactment of this Act.
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Subtitle B—Advisory Commission
to Assess Domestic Response
Capabilities For Terrorism In-
volving Weapons of Mass De-
struction
SEC. 1421. ESTABLISHMENT OF COMMISSION.
(a) ESTABLISHMENT.—There is hereby established a
commission to be known as the ‘‘Advisory Commission on
Domestic Response Capabilities for Terrorism Involving
Weapons of Mass Destruction’’ (hereinafter referred to as
the ‘‘Commission’’).
(b) COMPOSITION.—The Commission shall be com-
posed of 15 members, appointed as follows:
(1) four members appointed by the Speaker of
the House of Representatives;
(2) four members appointed by the majority
leader of the Senate;
(3) two members appointed by the minority
leader of the House of Representatives;
(4) two members appointed by the minority
leader of the Senate;
(5) three members appointed by the President.
(c) QUALIFICATIONS.—Members shall be appointed
from among individuals with knowledge and expertise in
emergency response matters.
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(d) DEADLINE FOR APPOINTMENTS.—Appointments
shall be made not later than the date that is 30 days after
the date of the enactment of this Act.
(e) INITIAL MEETING.—The Commission shall con-
duct its first meeting not later than the date that is 30
days after the date that appointments to the Commission
have been made.
(f) CHAIRMAN.—A Chairman of the Commission
shall be elected by a majority of the members.
SEC. 1422. DUTIES OF COMMISSION.
The Commission shall—
(1) assess Federal agency efforts to enhance do-
mestic preparedness for incidents involving weapons
of mass destruction;
(2) assess the progress of Federal training pro-
grams for local emergency responses to incidents in-
volving weapons of mass destruction;
(3) assess deficiencies in training programs for
responses to incidents involving weapons of mass de-
struction, including a review of unfunded commu-
nications, equipment, and planning and maritime re-
gion needs;
(4) recommend strategies for ensuring effective
coordination with respect to Federal agency weapons
of mass destruction response efforts, and for ensur-
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ing fully effective local response capabilities for
weapons of mass destruction incidents; and
(5) assess the appropriate role of State and
local governments in funding effective local response
capabilities.
SEC. 1423. REPORT.
Not later than the date that is 6 months after the
date of the first meeting of the Commission, the Commis-
sion shall submit a report to the President and to Con-
gress on its findings under section 1422 and recommenda-
tions for improving Federal, State, and local domestic
emergency preparedness to respond to incidents involving
weapons of mass destruction.
SEC. 1424. POWERS.
(a) HEARINGS.—The Commission or, at its direction,
any panel or member of the Commission, may, for the pur-
pose of carrying out this Act, hold such hearings, sit and
act at times and places, take testimony, receive evidence,
and administer oaths to the extent that the Commission
or any panel member considers advisable.
(b) INFORMATION.—The Commission may secure di-
rectly from any department or agency of the United States
information that the Commission considers necessary to
enable the Commission to carry out its responsibilities
under this Act.
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SEC. 1425. COMMISSION PROCEDURES.
(a) MEETINGS.—The Commission shall meet at the
call of a majority of the members.
(b) QUORUM.—Eight members of the Commission
shall constitute a quorum other than for the purpose of
holding hearings.
(c) COMMISSION.—The Commission may establish
panels composed of less than full membership of the Com-
mission for the purpose of carrying out the Commission’s
duties. The actions of each such panel shall be subject to
the review and control of the Commission. Any findings
and determinations made by such panel shall not be con-
sidered the findings and determinations of the Commis-
sion unless approved by the Commission.
(d) AUTHORITY OF INDIVIDUALS TO ACT FOR COM-
MISSION.—Any member or agent of the Commission may,
if authorized by the Commission, take any action which
the Commission is authorized to take by this Act.
SEC. 1426. PERSONNEL MATTERS.
(a) PAY OF MEMBERS.—Members of the Commission
shall serve without pay by reason of their work on the
Commission.
(b) TRAVEL EXPENSES.—The members of the Com-
mission shall be allowed travel expenses, including per
diem in lieu of subsistence, at rates authorized for employ-
ees of agencies under subchapter I of chapter 57 of title
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5, United States Code, while away from their homes or
regular places of business in the performance of services
for the Commission.
(c) STAFF.—(1) The Commission may, without re-
gard to the provisions of title 5, United States Code, gov-
erning appointments in the competitive service, appoint a
staff director and such additional personnel as may be
necessary to enable the Commission to perform its duties.
(2) The Commission may fix the pay of the staff di-
rector and other personnel without regard to the provi-
sions of chapter 51 and subchapter III of chapter 53 of
title 5, United States Code, relating to classification of
positions and General Schedule pay rates, except that the
rate of pay fixed under this paragraph for the staff direc-
tor may not exceed the rate payable for level V of the Ex-
ecutive Schedule under section 5316 of such title and the
rate of pay for other personnel may not exceed the maxi-
mum rate payable for grade GS–15 of the General Sched-
ule.
(d) DETAIL OF GOVERNMENT EMPLOYEES.—Upon
request of the Commission, the head of any Federal de-
partment or agency may detail, on a nonreimbursable
basis, any personnel of that department or agency to the
Commission to assist it in carrying out its duties.
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(e) PROCUREMENT OF TEMPORARY AND INTERMIT-
TENT SERVICES.—The Commission may procure tem-
porary and intermittent services under section 3109(b) of
title 5, United States Code, at rates for individuals which
do not exceed the daily equivalent of the annual rate of
pay payable for level V of the Executive Schedule under
section 5316 of such title.
SEC. 1427. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.
(a) POSTAL AND PRINTING SERVICES.—The Com-
mission may use the United States mails and obtain print-
ing and binding services in the same manner and under
the same conditions as other departments and agencies of
the United States.
(b) MISCELLANEOUS ADMINISTRATIVE
AND SUP-
PORT SERVICES.—Upon the request of the Commission,
the Administrator of General Services shall provide to the
Commission, on a reimbursable basis, the administrative
support services necessary for the Commission to carry out
its duties under this title.
(c) EXPERTS AND CONSULTANTS.—The Commission
may procure temporary and intermittent services under
section 3109(b) of title 5, United States Code.
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SEC. 1428. TERMINATION OF COMMISSION.
The Commission shall terminate not later than 60
days after the date that the Commission submits its report
under section 1423.
SEC. 1429. FUNDING.
Funds for activities of the Commission shall be pro-
vided from amounts appropriated for the Department of
Defense for operation and maintenance for Defense-wide
activities for fiscal year 1999.
DIVISION 
B—MILITARY 
CON-
STRUCTION 
AUTHORIZA-
TIONS
SEC. 2001. SHORT TITLE.
This division may be cited as the ‘‘Military Construc-
tion Authorization Act for Fiscal Year 1999’’.
TITLE XXI—ARMY
SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND
ACQUISITION PROJECTS.
(a) INSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 2104(a)(1), the Secretary of the Army
may acquire real property and carry out military construc-
tion projects for the installations and locations inside the
United States, and in the amounts, set forth in the follow-
ing table:
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Army: Inside the United States
State
Installation or location
Amount
Alabama ............................
Anniston Army Depot ...........................
$3,550,000
Fort Rucker ..........................................
$4,300,000
Redstone Arsenal ..................................
$1,550,000
California ..........................
Fort Irwin .............................................
$14,800,000
Georgia ..............................
Fort Benning ........................................
$28,600,000
Hawaii ...............................
Schofield Barracks ................................
$67,500,000
Illinois ...............................
Rock Island Arsenal ..............................
$5,300,000
Indiana ..............................
Crane Army Ammunition Activity ........
$7,100,000
Kansas ..............................
Fort Riley ..............................................
$3,600,000
Kentucky ...........................
Blue Grass Army Depot .......................
$5,300,000
Fort Campbell .......................................
$41,000,000
Fort Knox .............................................
$23,000,000
Louisiana ..........................
Fort Polk ..............................................
$8,300,000
Maryland ...........................
Fort Detrick ..........................................
$3,550,000
Missouri ............................
Fort Leonard Wood ..............................
$28,200,000
New Jersey .......................
Fort Monmouth ....................................
$7,600,000
Picatinny Arsenal ..................................
$8,400,000
New York ..........................
Fort Drum ............................................
$4,650,000
United States Military Academy, West
Point ..................................................
$85,000,000
North Carolina ..................
Fort Bragg ............................................
$95,900,000
Oklahoma ..........................
Fort Sill ................................................
$13,800,000
McAlester Army Ammunition Plant .....
$10,800,000
Texas ................................
Fort Bliss ..............................................
$4,100,000
Fort Hood .............................................
$32,500,000
Fort Sam Houston ................................
$21,800,000
Utah ..................................
Tooele Army Depot ...............................
$3,900,000
Virginia .............................
National Ground Intelligence Center,
Charlottesville ....................................
$46,200,000
Fort Eustis ...........................................
$36,531,000
Washington .......................
Fort Lewis ............................................
$18,200,000
CONUS Classified ............
Classified Location ................................
$4,600,000
Total ......................................
$639,631,000
(b) OUTSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 2104(a)(2), the Secretary of the Army
may acquire real property and carry out military construc-
tion projects for the locations outside the United States,
and in the amounts, set forth in the following table:
Army: Outside the United States
Country
Installation or location
Amount
Belgium .................................
80th Area Support Group ................
$6,300,000
Germany ................................
Schweinfurt ......................................
$18,000,000
Wurzburg ..........................................
$4,250,000
Korea .....................................
Camp Casey ......................................
$13,400,000
Camp Castle .....................................
$18,226,000
Camp Humphreys ............................
$8,500,000
Camp Stanley ...................................
$5,800,000
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Army: Outside the United States—Continued
Country
Installation or location
Amount
Kwajalein ...............................
Kwajalein Atoll .................................
$48,600,000
Total ..................................
$123,076,000
SEC. 2102. FAMILY HOUSING.
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using
amounts appropriated pursuant to the authorization of ap-
propriations in section 2104(a)(5)(A), the Secretary of the
Army may construct or acquire family housing units (in-
cluding land acquisition) at the installations, for the pur-
poses, and in the amounts set forth in the following table:
Army: Family Housing
State
Installation or
location
Purpose
Amount
Alabama ...............................
Redstone Arsenal ................
118 Units ...........
$14,000,000
Hawaii .................................
Schofield Barracks ..............
64 Units .............
$14,700,000
North Carolina ....................
Fort Bragg ..........................
170 Units ...........
$19,800,000
Texas ...................................
Fort Hood ...........................
154 Units ...........
$21,600,000
Virginia ................................
Fort Lee ..............................
80 Units .............
$13,000,000
Total ...................
$83,100,000
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriations in
section 2104(a)(5)(A), the Secretary of the Army may
carry out architectural and engineering services and con-
struction design activities with respect to the construction
or improvement of family housing units in an amount not
to exceed $6,350,000.
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SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING
UNITS.
Subject to section 2825 of title 10, United States
Code, and using amounts appropriated pursuant to the
authorization of appropriations in section 2104(a)(5)(A),
the Secretary of the Army may improve existing military
family housing units in an amount not to exceed
$37,429,000.
SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.
(a) IN GENERAL.—Funds are hereby authorized to
be appropriated for fiscal years beginning after September
30, 1998, for military construction, land acquisition, and
military family housing functions of the Department of the
Army in the total amount of $2,010,036,000 as follows:
(1) For military construction projects inside the
United States authorized by section 2101(a),
$535,631,000.
(2) For military construction projects outside
the United States authorized by section 2101(b),
$87,076,000.
(3) For unspecified minor construction projects
authorized by section 2805 of title 10, United States
Code, $5,000,000.
(4) For architectural and engineering services
and construction design under section 2807 of title
10, United States Code, $63,792,000.
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section 2101(a) of the Military Construction Author-
ization Act for Fiscal Year 1998, $20,500,000.
(10) For rail yard expansion at Fort Carson,
Colorado, authorized by section 2101(a) of the Mili-
tary Construction Authorization Act for Fiscal Year
1998, $23,000,000.
(11) For the construction of an aerial gunnery
range at Fort Drum, New York, authorized by sec-
tion 2101(a) of the Military Construction Authoriza-
tion Act for Fiscal Year 1998, $9,000,000.
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and
any other cost variation authorized by law, the total cost
of all projects carried out under section 2101 of this Act
may not exceed—
(1) the total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection
(a);
(2) $16,000,000 (the balance of the amount au-
thorized under section 2101(a) for the construction
of a multipurpose digital training range at Fort
Knox, Kentucky);
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(3) $15,000,000 (the balance of the amount au-
thorized under section 2101(a) for the construction
of a railhead facility at Fort Hood, Texas);
(4) $73,000,000 (the balance of the amount au-
thorized under section 2101(a) for the construction
of a cadet development center at the United States
Military Academy, West Point, New York); and
(5) $36,000,000 (the balance of the amount au-
thorized under section 2101(b) for the construction
of a powerplant on Roi Namur Island at Kwajalein
Atoll, Kwajalein).
(c) ADJUSTMENTS.—The total amount authorized to
be appropriated pursuant to paragraphs (1) through (11)
of subsection (a) is the sum of the amounts authorized
to be appropriated in such paragraphs, reduced by—
(1) $2,639,000, which represents the combina-
tion of project savings in military family housing
construction resulting from favorable bids, reduced
overhead costs, and cancellations due to force struc-
ture changes; and
(2) $6,000,000, which represents the combina-
tion of project savings in military construction re-
sulting from favorable bids, reduced overhead costs,
and cancellations due to force structure changes.
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SEC. 2105. INCREASE IN FISCAL YEAR 1998 AUTHORIZATION
FOR MILITARY CONSTRUCTION PROJECTS AT
FORT DRUM, NEW YORK, AND FORT SILL,
OKLAHOMA.
(a) INCREASE.—The table in section 2101(a) of the
Military Construction Authorization Act for Fiscal Year
1998 (division B of Public Law 105–85; 111 Stat. 1967)
is amended—
(1) in the item relating to Fort Drum, New
York, by striking out ‘‘$24,400,000’’ in the amount
column and inserting in lieu thereof ‘‘$24,900,000’’;
(2) in the item relating to Fort Sill, Oklahoma,
by striking out ‘‘$25,000,000’’ in the amount col-
umn and inserting in lieu thereof ‘‘$28,500,000’’;
and
(3) by striking out the amount identified as the
total in the amount column and inserting in lieu
thereof ‘‘$602,750,000’’.
(b) CONFORMING AMENDMENT.—Section 2104 of
that Act (111 Stat. 1968) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1),
by striking out ‘‘$2,010,466,000’’ and inserting
in lieu thereof ‘‘$2,013,966,000’’; and
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(B) in paragraph (1), by striking out
‘‘$435,350,000’’ and inserting in lieu thereof
‘‘$438,850,000’’; and
(2) in subsection (b)(8), by striking out
‘‘$8,500,000’’ 
and 
inserting 
in 
lieu 
thereof
‘‘$9,000,000’’.
TITLE XXII—NAVY
SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND
ACQUISITION PROJECTS.
(a) INSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 2204(a)(1), the Secretary of the Navy may
acquire real property and carry out military construction
projects for the installations and locations inside the
United States, and in the amounts, set forth in the follow-
ing table:
Navy: Inside the United States
State
Installation or location
Amount
Arizona ..........................
Marine Corps Air Station, Yuma .............
$11,010,000
Naval Observatory Detachment, Flag-
staff ......................................................
$990,000
California .......................
Marine Corps Air Station, Miramar ........
$29,570,000
Marine Corps Base, Camp Pendleton ......
$40,430,000
Naval Air Station, Lemoore .....................
$20,640,000
Naval Air Warfare Center Weapons Divi-
sion, China Lake.
$10,140,000
Naval Facility, San Clemente Island .......
$8,350,000
Naval Submarine Base, San Diego ..........
$11,400,000
District of Columbia ......
Naval District, Washington .....................
$790,000
Florida ...........................
Naval Air Station, Key West ...................
$3,730,000
Naval Air Station, Jacksonville ...............
$1,500,000
Naval Air Station, Whiting Field ............
$1,400,000
Naval Station, Mayport ...........................
$6,163,000
Georgia ..........................
Marine Corps Logistics Base, Albany ......
$2,800,000
Naval Submarine Base, Kings Bay .........
$2,550,000
Hawaii ...........................
Fleet and Industrial Supply Center,
Pearl Harbor ........................................
$9,730,000
Marine Corps Air Station, Kaneohe Bay
$27,410,000
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Navy: Inside the United States—Continued
State
Installation or location
Amount
Naval Communications & Telecommuni-
cations Area Master Station Eastern
Pacific, Wahiawa ..................................
$1,970,000
Naval Shipyard, Pearl Harbor .................
$11,400,000
Naval Station, Pearl Harbor ...................
$18,180,000
Naval Submarine Base, Pearl Harbor .....
$8,060,000
Navy Public Works Center, Pearl Harbor
$28,967,000
Illinois ............................
Naval Training Center, Great Lakes .......
$20,280,000
Indiana ...........................
Naval Surface Warfare Center, Crane .....
$11,110,000
Maryland ........................
Naval Surface Warfare Center, Indian
Head Division, Indian Head ................
$13,270,000
Mississippi .....................
Naval Air Station, Meridian ....................
$3,280,000
Naval Construction Battalion Center
Gulfport ................................................
$10,670,000
North Carolina ..............
Marine Corps Air Station, Cherry Point
$6,040,000
Marine Corps Base, Camp LeJeune ........
$14,600,000
Pennsylvania ..................
Naval Surface Warfare Center Ship Sys-
tems Engineering Station, Philadelphia
$2,410,000
Rhode Island ..................
Naval Education and Training Center,
Newport ................................................
$5,630,000
Naval Undersea Warfare Center Division,
Newport ................................................
$9,140,000
South Carolina ...............
Marine Corps Air Station, Beaufort ........
$1,770,000
Marine Corps Reserve Detachment Parris
Island ...................................................
$15,990,000
Naval Weapons Station, Charleston ........
$9,737,000
Texas .............................
Naval Station, Ingleside ...........................
$12,200,000
Virginia ..........................
Fleet and Industrial Supply Center, Nor-
folk (Craney Island) .............................
$1,770,000
Fleet Training Center, Norfolk ................
$5,700,000
Naval Air Station, Oceana .......................
$6,400,000
Naval Shipyard, Norfolk, Portsmouth .....
$6,180,000
Naval Station, Norfolk .............................
$45,530,000
Naval Surface Warfare Center, Dahlgren
$15,680,000
Tactical Training Group Atlantic, Dam
Neck .....................................................
$2,430,000
Washington ....................
Naval Shipyard, Puget Sound .................
$4,300,000
Strategic 
Weapons 
Facility 
Pacific,
Bremerton ............................................
$2,750,000
Total .........................................
$484,047,000
(b) OUTSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 2204(a)(2), the Secretary of the Navy may
acquire real property and carry out military construction
projects for the installations and locations outside the
United States, and in the amounts, set forth in the follow-
ing table:
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Navy: Outside the United States
Country
Installation or location
Amount
Greece ............................
Naval Support Activity, Souda Bay .........
$5,260,000
Guam .............................
Naval Activities, Guam ............................
$10,310,000
Italy ...............................
Naval Support Activity, Naples ...............
$18,270,000
United Kingdom ............
Joint Maritime Communications Center,
St. Mawgan ..........................................
$2,010,000
Total .........................................
$35,850,000
SEC. 2202. FAMILY HOUSING.
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using
amounts appropriated pursuant to the authorization of ap-
propriations in section 2204(a)(5)(A), the Secretary of the
Navy may construct or acquire family housing units (in-
cluding land acquisition) at the installations, for the pur-
poses, and in the amounts set forth in the following table:
Navy: Family Housing
State
Installation or loca-
tion
Purpose
Amount
California .....................
Naval Air Station, Lemoore
162 Units ....................
$30,379,000
Hawaii .........................
Navy Public Works Center,
Pearl Harbor ..................
150 Units ....................
$29,125,000
Total ............................
$59,504,000
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriations in
section 2204(a)(5)(A), the Secretary of the Navy may
carry out architectural and engineering services and con-
struction design activities with respect to the construction
or improvement of military family housing units in an
amount not to exceed $15,618,000.
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SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING
UNITS.
Subject to section 2825 of title 10, United States
Code, and using amounts appropriated pursuant to the
authorization of appropriations in section 2204(a)(5)(A),
the Secretary of the Navy may improve existing military
family housing units in an amount not to exceed
$221,991,000.
SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.
(a) IN GENERAL.—Funds are hereby authorized to
be appropriated for fiscal years beginning after September
30, 1998, for military construction, land acquisition, and
military family housing functions of the Department of the
Navy in the total amount of $1,776,726,000 as follows:
(1) For military construction projects inside the
United States authorized by section 2201(a),
$470,547,000.
(2) For military construction projects outside
the United States authorized by section 2201(b),
$35,850,000.
(3) For unspecified minor construction projects
authorized by section 2805 of title 10, United States
Code, $8,900,000.
(4) For architectural and engineering services
and construction design under section 2807 of title
10, United States Code, $60,346,000.
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(5) For military family housing functions:
(A) For construction and acquisition, plan-
ning and design, and improvement of military
family housing and facilities, $297,113,000.
(B) For support of military housing (in-
cluding functions described in section 2833 of
title 10, United States Code), $915,293,000.
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and
any other cost variation authorized by law, the total cost
of all projects carried out under section 2201 of this Act
may not exceed—
(1) the total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection
(a); and
(2) $13,500,000 (the balance of the amount au-
thorized under section 2202(a) for the construction
of a berthing pier at Naval Station, Norfolk, Vir-
ginia.
(c) ADJUSTMENT.—The total amount authorized to
be appropriated pursuant to paragraphs (1) through (5)
of subsection (a) is the sum of the amounts authorized
to be appropriated in such paragraphs, reduced by—
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(1) $6,323,000 which represents the combina-
tion of project savings in military family housing
construction resulting from favorable bids, reduced
overhead costs, and cancellations due to force struc-
ture changes; and
(2) $5,000,000 which represents the combina-
tion of project savings in military construction re-
sulting from favorable bids, reduced overhead costs,
and cancellations due to force structure changes.
SEC. 2205. AUTHORIZATION TO ACCEPT ROAD CONSTRUC-
TION PROJECT, MARINE CORPS BASE, CAMP
LEJEUNE, NORTH CAROLINA.
The Secretary of the Navy may accept from the State
of North Carolina, a road construction project valued at
approximately $2,000,000, which is to be constructed at
Marine Corps Base, Camp Lejeune, North Carolina, in ac-
cordance with plans and specifications acceptable to the
Secretary of the Navy.
TITLE XXIII—AIR FORCE
SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND
LAND ACQUISITION PROJECTS.
(a) INSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 2304(a)(1), the Secretary of the Air Force
may acquire real property and carry out military construc-