112
Armed Forces using the CLASS Demonstration
Program shall be honored if the selection does
not conflict with subparagraph (A) or (B) and
the need to maintain adequate capacity.
(6) PERFORMANCE EVALUATION DURING THE
TERM
OF
THE
DEMONSTRATION
PROGRAM.—The
CLASS Demonstration Program shall provide for
procedures for evaluation of the Demonstration Pro-
gram participants by the members of the Armed
Forces furnished personal property shipping services
and by Installation Transportation Officers. To the
maximum extent practicable, such evaluations shall
be objective and quantifiable. The program partici-
pant shall be accorded the opportunity to review and
make comment on a performance evaluation pro-
vided by an individual in a manner that will not
deter candid evaluations by the individual. The re-
sults of this evaluation may be used in developing
future best value CLASS scores.
(7) 
MODERN
CUSTOMER
SERVICE
TECH-
NIQUES.—The 
CLASS 
Demonstration 
Program
shall maximize the testing of modern customer serv-
ice techniques, such as in-transit tracking of ship-
ments and service member communication with the
113
service provider by means of toll-free telephone num-
bers.
(8) 
DIRECT
CLAIMS
SETTLEMENT
TECH-
NIQUES.—The 
CLASS 
Demonstration 
Program
shall provide for settlement of claims for personal
property lost or damaged directly with the firm pro-
viding the services. The procedures shall provide
for—
(A) acknowledgment of a claim by the
service provider within 30 days of receipt;
(B) provision of a settlement offer within
120 days;
(C) filing of a claim within nine months,
with appropriate extensions for extenuating cir-
cumstances relating to war or national emer-
gency that impair the ability of a member of
the Armed Forces to file a timely claim; and
(D) referring of an unsettled claim by the
member of the Armed Forces to a designated
claims officer for assistance in resolving the
claim or seeking commercial-like arbitration of
the claim, or both, if considered appropriate by
the claims officer.
(9) CRITERIA FOR EVALUATION OF THE OVER-
ALL
DEMONSTRATION
PROGRAM.—The 
CLASS
114
Demonstration Program shall include the develop-
ment of criteria to evaluate the overall performance
and effectiveness of the CLASS demonstration pro-
gram.
(c) DEVELOPMENT IN COLLABORATION WITH IN-
DUSTRY.—In developing the test plan, the Secretary of
Defense shall maximize collaboration with representatives
of associations that represent all segments of the affected
industries. Special efforts shall be made to actively involve
those associations that represent small business providers
of personal property shipping services.
(d) OPPORTUNITY FOR PUBLIC COMMENT ON PRO-
POSED TEST PLAN.—Notice of the availability of the test
plan shall be published in the Federal Register and given
by other means likely to result in the notification of eligi-
ble service providers and associations that represent them.
Copies of the proposed test plan may be made available
in a printable electronic format. The public shall be af-
forded 60 days to comment on the proposed test plan.
SEC. 385. OTHER METHODS OF PERSONAL PROPERTY SHIP-
PING.
The CLASS Demonstration Program shall not impair
the access of a member of the Armed Forces to the ship-
ment of personal property through the programs known
115
as the Do-It-Yourself Program or the Direct Procurement
Method Program.
SEC. 386. DURATION OF DEMONSTRATION PROGRAM.
The CLASS Demonstration Program shall commence
on the first day of the fiscal year quarter after the
issuance of the test plan in final form and terminate on
the last day of the fiscal year quarter after eight fiscal
year quarters of operation. The CLASS Demonstration
Program shall take the place of the re-engineering pilot
solicitation of the Military Traffic Management Command
identified as DAMTO1–97–R–3001.
SEC. 387. EVALUATION OF DEMONSTRATION PROGRAM.
(a) IN GENERAL.—The Secretary of Defense shall
provide for the evaluation the CLASS Demonstration Pro-
gram throughout the term of the program pursuant to the
evaluation criteria included in the test plan.
(b) INTERIM REPORTS.—The Secretary of Defense
shall issue such interim reports relating to the implemen-
tation of the CLASS Demonstration Program as may be
appropriate.
(c) FINAL REPORT.—The Secretary of Defense shall
issue a final report on the CLASS Demonstration Pro-
gram within 180 days before the termination date of the
program. The report may include recommendations for
116
further implementation of the CLASS Demonstration Pro-
gram.
(d) CONGRESSIONAL RECIPIENTS.—The reports re-
quired by this section shall be furnished to the congres-
sional defense committees and the Committee on Small
Business of the Senate and the House of Representatives.
(e) PUBLIC AVAILABILITY.—The Secretary of De-
fense shall provide public notice of the availability of cop-
ies of the reports submitted to the congressional recipients
through a notice in the Federal Register and such other
means as may be appropriate. Copies of the reports may
be made available in a printable electronic format or in
a printed form.
TITLE IV—MILITARY
PERSONNEL AUTHORIZATIONS
Subtitle A—Active Forces
SEC. 401. END STRENGTHS FOR ACTIVE FORCES.
The Armed Forces are authorized strengths for active
duty personnel as of September 30, 1999, as follows:
(1) The Army, 484,800.
(2) The Navy, 376,423.
(3) The Marine Corps, 173,922.
(4) The Air Force, 371,577.
117
SEC. 402. REVISION IN PERMANENT END STRENGTH LEV-
ELS.
(a) REVISED END STRENGTH FLOORS.—Subsection
(b) of section 691 of title 10, United States Code, is
amended—
(1) in paragraph (1), by striking out ‘‘495,000’’
and inserting in lieu thereof ‘‘484,800’’;
(2) in paragraph (2), by striking out ‘‘390,802’’
and inserting in lieu thereof ‘‘376,423’’; and
(3) in paragraph (3), by striking out ‘‘174,000’’
and inserting in lieu thereof ‘‘173,922’’.
(b) REVISION TO FLEXIBILITY AUTHORITY FOR THE
ARMY.—Subsection (e) of such section is amended by
striking out ‘‘or, in the case of the Army, by not more
than 1.5 percent’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 1998.
SEC. 403. DATE FOR SUBMISSION OF ANNUAL MANPOWER
REQUIREMENTS REPORT.
Section 115a(a) of title 10, United States Code, is
amended—
(1) by striking out ‘‘, not later than February
15 of each fiscal year,’’ in the first sentence; and
(2) by striking out ‘‘The report shall be in writ-
ing and’’ in the second sentence and inserting in lieu
thereof ‘‘The report shall be submitted each year not
118
later than 30 days after the date on which the budg-
et for the next fiscal year is transmitted to Congress
pursuant to section 1105 of title 31, shall be in writ-
ing, and’’.
SEC. 404. EXTENSION OF AUTHORITY FOR CHAIRMAN OF
THE JOINT CHIEFS OF STAFF TO DESIGNATE
UP TO 12 GENERAL AND FLAG OFFICER POSI-
TIONS TO BE EXCLUDED FROM GENERAL
AND FLAG OFFICER GRADE LIMITATIONS.
Section 526(b)(2) of title 10, United States Code, is
amended by striking out ‘‘October 1, 1998’’ and inserting
in lieu thereof ‘‘October 1, 2001’’.
Subtitle B—Reserve Forces
SEC. 411. END STRENGTHS FOR SELECTED RESERVE.
(a) IN GENERAL.—The Armed Forces are authorized
strengths for Selected Reserve personnel of the reserve
components as of September 30, 1999, as follows:
(1) The Army National Guard of the United
States, 357,000.
(2) The Army Reserve, 209,000.
(3) The Naval Reserve, 90,843.
(4) The Marine Corps Reserve, 40,018.
(5) The Air National Guard of the United
States, 106,991.
(6) The Air Force Reserve, 74,242.
121
SEC. 414. INCREASE IN NUMBER OF MEMBERS IN CERTAIN
GRADES AUTHORIZED TO SERVE ON ACTIVE
DUTY IN SUPPORT OF THE RESERVES.
(a) OFFICERS.—The table in section 12011(a) of title
10, United States Code, is amended to read as follows:
‘‘Grade
Army
Navy
Air
Force
Marine
Corps
Major or Lieutenant Commander ...........................................
3,219
1,071
776
140
Lieutenant Colonel or Commander .........................................
1,524
520
672
Colonel or Navy Captain .........................................................
438
188
274
30’’.
(b) SENIOR ENLISTED MEMBERS.—The table in sec-
tion 12012(a) of such title is amended to read as follows:
‘‘Grade
Army
Navy
Air
Force
Marine
Corps
E–9 ..........................................................................................
623
202
388
E–8 ..........................................................................................
2,585
429
979
94’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take efffect on October 1, 1998.
Subtitle C—Authorization of
Appropriations
SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILI-
TARY PERSONNEL.
There is hereby authorized to be appropriated to the
Department of Defense for military personnel for fiscal
year 1999 a total of $70,697,086,000. The authorization
in the preceding sentence supersedes any other authoriza-
tion of appropriations (definite or indefinite) for such pur-
pose for fiscal year 1999.
122
TITLE V—MILITARY PERSONNEL
POLICY
Subtitle A—Officer Personnel
Policy
SEC. 501. CODIFICATION OF ELIGIBILITY OF RETIRED OFFI-
CERS AND FORMER OFFICERS FOR CONSID-
ERATION BY SPECIAL SELECTION BOARDS.
(a) PERSONS NOT CONSIDERED
BY PROMOTION
BOARDS DUE TO ADMINISTRATIVE ERROR.—Subsection
(a) of section 628 of title 10, United States Code, is
amended—
(1) by striking out paragraph (1) and inserting
in lieu thereof the following:
‘‘(a) PERSONS NOT CONSIDERED
BY PROMOTION
BOARDS DUE TO ADMINISTRATIVE ERROR.—(1) If the
Secretary of the military department concerned deter-
mines that because of administrative error a person who
should have been considered for selection for promotion
by a promotion board was not so considered, the Secretary
shall convene a special selection board under this sub-
section to determine whether that person (whether or not
then on active duty) should be recommended for pro-
motion.’’;
(2) in paragraph (2), by striking out ‘‘the offi-
cer as his record’’ in the first sentence and inserting
123
in lieu thereof ‘‘the person whose name was referred
to it for consideration as that record’’; and
(3) in paragraph (3), by striking out ‘‘an officer
in a grade’’ and all that follows through ‘‘the offi-
cer’’ and inserting in lieu thereof ‘‘a person whose
name was referred to it for consideration for selec-
tion for appointment to a grade other than a general
officer or flag officer grade, the person’’.
(b) PERSONS CONSIDERED BY PROMOTION BOARDS
IN UNFAIR MANNER.—Subsection (b) of such section is
amended—
(1) by striking out paragraph (1) and inserting
in lieu thereof the following:
‘‘(b) PERSONS CONSIDERED BY PROMOTION BOARDS
IN UNFAIR MANNER.—(1) If the Secretary of the military
department concerned determines, in the case of a person
who was considered for selection for promotion by a pro-
motion board but was not selected, that there was material
unfairness with respect to that person, the Secretary may
convene a special selection board under this subsection to
determine whether that person (whether or not then on
active duty) should be recommended for promotion. In
order to determine that there was material unfairness, the
Secretary must determine that—
124
‘‘(A) the action of the promotion board that
considered the person was contrary to law or in-
volved material error of fact or material administra-
tive error; or
‘‘(B) the board did not have before it for its
consideration material information.’’;
(2) in paragraph (2), by striking out ‘‘the offi-
cer as his record’’ in the first sentence and inserting
in lieu thereof ‘‘the person whose name was referred
to it for consideration as that record’’; and
(3) in paragraph (3)—
(A) by striking out ‘‘an officer’’ and insert-
ing in lieu thereof ‘‘a person’’; and
(B) by striking out ‘‘the officer’’ and in-
serting in lieu thereof ‘‘the person’’.
(c) CONFORMING AMENDMENTS.—(1) Subsection (c)
of such section is amended—
(A) by inserting ‘‘REPORTS
OF BOARDS.—’’
after ‘‘(c)’’;
(B) by striking out ‘‘officer’’ both places it ap-
pears in paragraph (1) and inserting in lieu thereof
‘‘person’’; and
(C) in paragraph (2), by adding the following
new sentence at the end: ‘‘However, in the case of
a board convened under this section to consider a
125
warrant officer or former warrant officer, the provi-
sions of sections 576(d) and 576(f) of this title
(rather than the provisions of section 617(b) and
618 of this title) apply to the report and proceedings
of the board in the same manner as they apply to
the report and proceedings of a selection board con-
vened under section 573 of this title.’’.
(2) Subsection (d)(1) of such section is amended—
(A) by inserting ‘‘APPOINTMENT OF PERSONS
SELECTED BY BOARDS.—’’ after ‘‘(d)’’;
(B) by striking out ‘‘an officer’’ and inserting
in lieu thereof ‘‘a person’’;
(C) by striking out ‘‘such officer’’ and inserting
in lieu thereof ‘‘that person’’;
(D) by striking out ‘‘the next higher grade’’ the
second place it appears and inserting in lieu thereof
‘‘that grade’’;
(E) by adding at the end the following: ‘‘How-
ever, in the case of a board convened under this sec-
tion to consider a warrant officer or former warrant
officer, if the report of that board, as approved by
the Secretary concerned, recommends that warrant
officer or former warrant officer for promotion to
the next higher grade, that person shall, as soon as
practicable, be appointed to the next higher grade in
126
accordance with provisions of section 578(c) of this
title (rather than subsections (b), (c), and (d) of sec-
tion 624 of this title).’’.
(3) Subsection (d)(2) of such section is amended—
(A) by striking out ‘‘An officer who is pro-
moted’’ and inserting in lieu thereof ‘‘A person who
is appointed’’;
(B) by striking out ‘‘such promotion’’ and in-
serting in lieu thereof ‘‘that appointment’’; and
(C) by adding at the end the following new sen-
tence: ‘‘In the case of a person who is not on the
active-duty list when appointed to the next higher
grade, placement of that person on the active-duty
list pursuant to the preceding sentence shall be only
for purposes of determination of eligibility of that
person for consideration for promotion by any subse-
quent special selection board under this section.’’.
(d) APPLICABILITY TO DECEASED PERSONS.—Sub-
section (e) of such section is amended to read as follows:
‘‘(e) DECEASED PERSONS.—If a person whose name
is being considered for referral to a special selection board
under this section dies before the completion of proceed-
ings under this section with respect to that person, this
section shall be applied to that person posthumously.’’.
127
(e) RECODIFICATION
OF
ADMINISTRATIVE
MAT-
TERS.—Such section is further amended by adding at the
end the following::
‘‘(f) CONVENING OF BOARDS.—A board convened
under this section—
‘‘(1) shall be convened under regulations pre-
scribed by the Secretary of Defense;
‘‘(2) shall be composed in accordance with sec-
tion 612 of this title or, in the case of board to con-
sider a warrant officer or former warrant officer, in
accordance with section 573 of this title and regula-
tions prescribed by the Secretary of the military de-
partment concerned; and
‘‘(3) shall be subject to the provisions of section
613 of this title.
‘‘(g) PROMOTION BOARD DEFINED.—In this section,
the term ‘promotion board’ means a selection board con-
vened by the Secretary of a military department under sec-
tion 573(a) or 611(a) of this title.’’.
(f) RATIFICATION
OF CODIFIED PRACTICE.—The
consideration by a special selection board convened under
section 628 of title 10, United States Code, before the date
of the enactment of this Act of a person who, at the time
of consideration, was a retired officer or former officer of
128
the Armed Forces (including a deceased retired or former
officer) is hereby ratified.
SEC. 502. COMMUNICATION TO PROMOTION BOARDS BY OF-
FICERS UNDER CONSIDERATION.
Section 614(b) of title 10, United States Code, is
amended by striking out ‘‘his case’’ and inserting in lieu
thereof ‘‘enhancing his case for selection for promotion’’.
SEC. 503. PROCEDURES FOR SEPARATION OF REGULAR OF-
FICERS FOR SUBSTANDARD PERFORMANCE
OF DUTY OR CERTAIN OTHER REASONS.
(a) ELIMINATION OF REQUIREMENT FOR A BOARD
OF REVIEW.—Section 1182(c) of title 10, United States
Code, is amended by striking out ‘‘it shall send the record
of its proceedings to a board of review convened under
section 1183 of this title’’ and inserting in lieu thereof
‘‘it shall report that determination to the Secretary con-
cerned’’;
(b) REPEAL OF BOARD OF REVIEW.—(1) Section
1183 of such title is repealed.
(2) The table of sections at the beginning of chapter
60 of such title is amended by striking out the item relat-
ing to section 1183.
(c) CONFORMING AMENDMENTS.—(1) Section 1184
of such title is amended by striking out ‘‘board of review
convened under section 1183 of this title’’ and inserting
129
in lieu thereof ‘‘board of inquiry convened under section
1182 of this title’’.
(2) The heading of such section and the item relating
to such section in the table of sections at the beginning
of chapter 60 of such title are amended by striking out
the last two words.
(d) ELIMINATION
OF 30-DAY NOTICE REQUIRE-
MENT.—Section 1185(a)(1) of such title is amended by
striking out ‘‘, at least 30 days before the hearing of his
case by a board of inquiry,’’.
SEC. 504. POSTHUMOUS COMMISSIONS AND WARRANTS.
Section 1521 of title 10, United States Code, is
amended—
(1) by inserting ‘‘(whether before or after the
member’s death)’’ in subsection (a)(3) after ‘‘ap-
proved by the Secretary concerned’’; and
(2) by adding at the end of subsection (b) the
following new sentence: ‘‘In the case of a member to
whom subsection (a)(3) applies who dies before ap-
proval by the Secretary concerned of the appoint-
ment or promotion, the commission shall issue as of
the date of death.’’.
130
SEC. 505. TENURE OF CHIEF OF THE AIR FORCE NURSE
CORPS.
Section 8069(b) of title 10, United States Code, is
amended by striking out ‘‘, but not for more than three
years, and may not be reappointed to the same position’’
in the last sentence.
Subtitle B—Reserve Component
Matters
SEC. 511. COMPOSITION OF SELECTIVE EARLY RETIRE-
MENT BOARDS OF RESERVE GENERAL AND
FLAG OFFICERS OF THE NAVY AND MARINE
CORPS.
Section 14705(b) of title 10, United States Code, is
amended to read as follows:
‘‘(b) BOARDS.—(1) If the Secretary of the Navy de-
termines that consideration of officers for early retirement
under this section is necessary, the Secretary shall convene
a continuation board under section 14101(b) of this title
to recommend an appropriate number of officers for early
retirement.
‘‘(2) In the case of such a board convened to consider
officers in the grade of rear admiral or major general—
‘‘(A) the Secretary may appoint the board with-
out regard to section 14102(b) of this title; and
131
‘‘(B) each member of the board must be serving
in a grade higher than the grade of rear admiral or
major general.’’.
SEC. 512. ACTIVE STATUS SERVICE REQUIREMENT FOR
PROMOTION CONSIDERATION FOR ARMY AND
AIR FORCE RESERVE COMPONENT BRIGA-
DIER GENERALS.
Section 14301 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(g) A reserve component brigadier general of the
Army or the Air Force who is in an inactive status is eligi-
ble (notwithstanding subsection (a)) for consideration for
promotion to major general by a promotion board con-
vened under section 14101(a) of this title if the officer—
‘‘(1) has been in an inactive status for less than
one year as of the date of the convening of the pro-
motion board; and
‘‘(2) had continuously served for at least one
year on the reserve active status list or the active
duty list (or a combination of both) immediately be-
fore the officer’s most recent transfer to an inactive
status.’’.
132
SEC. 513. REVISION TO EDUCATIONAL REQUIREMENT FOR
PROMOTION OF RESERVE OFFICERS.
(a) EXTENSION FOR ARMY OCS GRADUATES.—Sec-
tion 12205(b)(4) of title 10, United States Code, is
amended by inserting after ‘‘October 1, 1995’’ the follow-
ing: ‘‘, or in the case of an officer commissioned through
the Army Officer Candidate School, October 1, 2000’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect as of October 1, 1995.
Subtitle C—Military Education and
Training
SEC. 521. REQUIREMENTS RELATING TO RECRUIT BASIC
TRAINING.
(a) ARMY.—(1) Chapter 401 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 4319. Recruit basic training: separate platoons and
separate housing for male and female re-
cruits
‘‘(a) SEPARATE PLATOONS.—The Secretary of the
Army shall require that during basic training—
‘‘(1) male recruits shall be assigned to platoons
consisting only of male recruits; and
‘‘(2) female recruits shall be assigned to pla-
toons consisting only of female recruits.
133
‘‘(b) SEPARATE HOUSING FACILITIES.—The Sec-
retary of the Army shall require that during basic training
male and female recruits be housed in separate barracks
or other troop housing facilities.
‘‘(c) INTERIM AUTHORITY FOR HOUSING RECRUITS
ON SEPARATE FLOORS.—(1) If the Secretary of the Army
determines that it is not feasible, during some or all of
the period beginning on April 15, 1999, and ending on
October 1, 2001, to comply with subsection (b) at any par-
ticular installation at which basic training is conducted be-
cause facilities at that installation are insufficient for such
purpose, the Secretary may grant a waiver of subsection
(b) with respect to that installation. Any such waiver may
not be in effect after October 1, 2001, and may only be
in effect while the facilities at that installation are insuffi-
cient for the purposes of compliance with subsection (b).
‘‘(2) If the Secretary grants a waiver under para-
graph (1) with respect to an installation, the Secretary
shall require that male and female recruits in basic train-
ing at that installation during any period that the waiver
is in effect not be housed on the same floor of a barracks
or other troop housing facility.
‘‘(d) BASIC TRAINING DEFINED.—In this section, the
term ‘basic training’ means the initial entry training pro-
134
gram of the Army that constitutes the basic training of
new recruits.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘4319. Recruit basic training: separate platoons and separate housing for male
and female recruits.’’.
(3) The Secretary of the Army shall implement sec-
tion 4319 of title 10, United States Code, as added by
paragraph (1), as rapidly as feasible and shall ensure that
the provisions of that section are applied to all recruit
basic training classes beginning not later than the first
such class that enters basic training on or after April 15,
1999.
(b) NAVY AND MARINE CORPS.—(1) Part III of sub-
title C of title 10, United States Code, is amended by in-
serting after chapter 601 the following new chapter:
‘‘CHAPTER 602—TRAINING GENERALLY
‘‘Sec.
‘‘6931. Recruit basic training: separate small units and separate housing for
male and female recruits.
‘‘§ 6931. Recruit basic training: separate small units
and separate housing for male and fe-
male recruits
‘‘(a) SEPARATE SMALL UNIT ORGANIZATION.—The
Secretary of the Navy shall require that during basic
training—
135
‘‘(1) male recruits in the Navy shall be assigned
to divisions, and male recruits in the Marine Corps
shall be assigned to platoons, consisting only of male
recruits; and
‘‘(2) female recruits in the Navy shall be as-
signed to divisions, and female recruits in the Ma-
rine Corps shall be assigned to platoons, consisting
only of female recruits.
‘‘(b) SEPARATE HOUSING.—The Secretary of the
Navy shall require that during basic training male and fe-
male recruits be housed in separate barracks or other
troop housing facilities.
‘‘(c) INTERIM AUTHORITY FOR HOUSING RECRUITS
ON SEPARATE FLOORS.—(1) If the Secretary of the Navy
determines that it is not feasible, during some or all of
the period beginning on April 15, 1999, and ending on
October 1, 2001, to comply with subsection (b) at any par-
ticular installation at which basic training is conducted be-
cause facilities at that installation are insufficient for that
purpose, the Secretary may grant a waiver of subsection
(b) with respect to that installation. Any such waiver may
not be in effect after October 1, 2001, and may only be
in effect while the facilities at that installation are insuffi-
cient for the purposes of compliance with subsection (b).
136
‘‘(2) If the Secretary grants a waiver under para-
graph (1) with respect to an installation, the Secretary
shall require that male and female recruits in basic train-
ing at that installation during any period that the waiver
is in effect not be housed on the same floor of a barracks
or other troop housing facility.
‘‘(d) BASIC TRAINING DEFINED.—In this section, the
term ‘basic training’ means the initial entry training pro-
grams of the Navy and Marine Corps that constitute the
basic training of new recruits.’’.
(2) The tables of chapters at the beginning of subtitle
C, and at the beginning of part III of subtitle C, of such
title are amended by inserting after the item relating to
chapter 601 the following new item:
‘‘602. Training Generally ................................................................. 6931’’.
(3) The Secretary of the Navy shall implement sec-
tion 6931 of title 10, United States Code, as added by
paragraph (1), as rapidly as feasible and shall ensure that
the provisions of that section are applied to all recruit
basic training classes beginning not later than the first
such class that enters basic training on or after April 15,
1999.
(c) AIR FORCE.—(1) Chapter 901 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
137
‘‘§ 9319. Recruit basic training: separate flights and
separate housing for male and female re-
cruits
‘‘(a) SEPARATE FLIGHTS.—The Secretary of the Air
Force shall require that during basic training—
‘‘(1) male recruits shall be assigned to flights
consisting only of male recruits; and
‘‘(2) female recruits shall be assigned to flights
consisting only of female recruits.
‘‘(b) SEPARATE HOUSING.—The Secretary of the Air
Force shall require that during basic training male and
female recruits be housed in separate dormitories or other
troop housing facilities.
‘‘(c) INTERIM AUTHORITY FOR HOUSING RECRUITS
ON SEPARATE FLOORS.—(1) If the Secretary of the Air
Force determines that it is not feasible, during some or
all of the period beginning on April 15, 1999, and ending
on October 1, 2001, to comply with subsection (b) at any
particular installation at which basic training is conducted
because facilities at that installation are insufficient for
such purpose, the Secretary may grant a waiver of sub-
section (b) with respect to that installation. Any such
waiver may not be in effect after October 1, 2001, and
may only be in effect while the facilities at that installation
are insufficient for the purposes of compliance with sub-
section (b).
138
‘‘(2) If the Secretary grants a waiver under para-
graph (1) with respect to an installation, the Secretary
shall require that male and female recruits in basic train-
ing at that installation during any period that the waiver
is in effect not be housed on the same floor of a dormitory
or other troop housing facility.
‘‘(d) BASIC TRAINING DEFINED.—In this section, the
term ‘basic training’ means the initial entry training pro-
gram of the Air Force that constitutes the basic training
of new recruits.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘9319. Recruit basic training: separate flights and separate housing for male
and female recruits.’’.
(3) The Secretary of the Air Force shall implement
section 9319 of title 10, United States Code, as added by
paragraph (1), as rapidly as feasible and shall ensure that
the provisions of that section are applied to all recruit
basic training classes beginning not later than the first
such class that enters basic training on or after April 15,
1999.
SEC. 522. AFTER-HOURS PRIVACY FOR RECRUITS DURING
BASIC TRAINING.
(a) PURPOSE.—The purpose of this section is to en-
sure that military recruits are provided some degree of pri-
139
vacy during basic training when in their barracks after
completion of the normal training day.
(b) ARMY.—(1) Chapter 401 of title 10, United
States Code, is amended by adding after section 4319, as
added by section 521(a)(1), the following new section:
‘‘§ 4320. Recruit basic training: privacy
‘‘The Secretary of the Army shall require that access
by drill sergeants and other training personnel to a bar-
racks floor on which recruits are housed during basic
training shall be limited after the end of the training day,
other than in the case of an emergency or other exigent
circumstance, to drill sergeants and other training person-
nel who are of the same sex as the recruits housed on
that floor.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding after the item relating to
section 4319, as added by section 521(a)(2), the following
new item:
‘‘4320. Recruit basic training: privacy.’’.
(3) The Secretary of the Army shall implement sec-
tion 4320 of title 10, United States Code, as added by
paragraph (1), as rapidly as feasible and shall ensure that
the provisions of that section are applied to all recruit
basic training classes beginning not later than the first
such class that enters basic training on or after April 15,
1999.
140
(c) NAVY.—(1) Chapter 602 of title 10, United
States Code, as added by section 521(b)(1), is amended
by adding at the end the following new section:
‘‘§ 6932. Recruit basic training: privacy
‘‘The Secretary of the Navy shall require that access
by recruit division commanders and other training person-
nel to a barracks floor on which Navy recruits are housed
during basic training shall be limited after the end of the
training day, other than in the case of an emergency or
other exigent circumstance, to recruit division command-
ers and other training personnel who are of the same sex
as the recruits housed on that floor.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘6932. Recruit basic training: privacy.’’.
(3) The Secretary of the Navy shall implement sec-
tion 6932 of title 10, United States Code, as added by
paragraph (1), as rapidly as feasible and shall ensure that
the provisions of that section are applied to all recruit
basic training classes beginning not later than the first
such class that enters basic training on or after April 15,
1999.
(d) AIR FORCE.—(1) Chapter 901 of title 10, United
States Code, is amended by adding after section 9319, as
added by section 521(c)(1), the following new section:
141
‘‘§ 9320. Recruit basic training: privacy
‘‘The Secretary of the Air Force shall require that
access by drill sergeants and other training personnel to
a dormitory floor on which recruits are housed during
basic training shall be limited after the end of the training
day, other than in the case of an emergency or other exi-
gent circumstance, to drill sergeants and other training
personnel who are of the same sex as the recruits housed
on that floor.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding after the item relating to
section 9312, as added by section 521(c)(2), the following
new item:
‘‘9320. Recruit basic training: privacy.’’.
(3) The Secretary of the Air Force shall implement
section 9320 of title 10, United States Code, as added by
paragraph (1), as rapidly as feasible and shall ensure that
the provisions of that section are applied to all recruit
basic training classes beginning not later than the first
such class that enters basic training on or after April 15,
1999.
SEC. 523. EXTENSION OF REPORTING DATES FOR COMMIS-
SION ON MILITARY TRAINING AND GENDER-
RELATED ISSUES.
(a) FIRST REPORT.—Subsection (e)(1) of section 562
of the National Defense Authorization Act for Fiscal Year
142
1998 (Public Law 105–85; 111 Stat. 1754) is amended
by striking out ‘‘April 15, 1998’’ and inserting in lieu
thereof ‘‘October 15, 1998’’.
(b) FINAL REPORT.—Subsection (e)(2) of such sec-
tion is amended by striking out ‘‘September 16, 1998’’
and inserting in lieu thereof ‘‘March 15, 1999’’.
SEC. 524. IMPROVED OVERSIGHT OF INNOVATIVE READI-
NESS TRAINING.
(a) IN GENERAL.—Section 2012 of title 10, United
States Code, is amended by adding at the end the follow-
ing new subsection:
‘‘(j) OVERSIGHT AND COST ACCOUNTING.—The Sec-
retary of Defense shall establish a program to improve the
oversight and cost accounting of training projects con-
ducted in accordance with this section. The program shall
include measures to accomplish the following:
‘‘(1) Ensure that each project that is proposed
to be conducted in accordance with this section (re-
gardless of whether additional funding from the Sec-
retary of Defense is sought) is requested in writing,
reviewed for full compliance with this section, and
approved in advance of initiation by the Secretary of
the military department concerned and, in the case
of a project that seeks additional funding from the
Secretary of Defense, by the Secretary of Defense.
143
‘‘(2) Ensure that each project that is conducted
in accordance with this section is required to pro-
vide, within a specified period following completion
of the project, an after-action report to the Sec-
retary of Defense.
‘‘(3) Require that each application for a project
to be conducted in accordance with this section in-
clude an analysis and certification that the proposed
project would not result in a significant increase in
the cost of training (as determined in accordance
with procedures prescribed by the Secretary of De-
fense).
‘‘(4) Determine the total program cost for each
project, including both those costs that are borne by
the military departments from their own accounts
and those costs that are borne by defense-wide ac-
counts.
‘‘(5) Provide for oversight of project execution
to ensure that a training project under this section
is carried out in accordance with the proposal for
that project as approved.’’.
(b) IMPLEMENTATION.—The Secretary of Defense
may not initiate any project under section 2012 of title
10, United States Code, after October 1, 1998, until the
144
program required by subsection (i) of that section (as
added by subsection (a)) has been established.
Subtitle D—Decorations, Awards,
and Commendations
SEC. 531. STUDY OF NEW DECORATIONS FOR INJURY OR
DEATH IN LINE OF DUTY.
(a) DETERMINATION OF CRITERIA FOR NEW DECO-
RATION.—(1) The Secretary of Defense shall determine
the appropriate name, policy, award criteria, and design
for two possible new decorations.
(2) The first such decoration would, if implemented,
be awarded to members of the Armed Forces who, while
serving under competent authority in any capacity with
the Armed Forces, are killed or injured in the line of duty
as a result of noncombat circumstances occurring—
(A) as a result of an international terrorist at-
tack against the United States or a foreign nation
friendly to the United States;
(B) while engaged in, training for, or traveling
to or from a peacetime or contingency operation; or
(C) while engaged in, training for, or traveling
to or from service outside the territory of the United
States as part of a peacekeeping force.
(3) The second such decoration would, if imple-
mented, be awarded to civilian nationals of the United
145
States who, while serving under competent authority in
any capacity with the Armed Forces, are killed or injured
in the line of duty under circumstances which, if they were
members of the Armed Forces, would qualify them for
award of the Purple Heart or the medal described in para-
graph (2).
(b) LIMITATION ON IMPLEMENTATION.—Any such
decoration may only be implemented as provided by a law
enacted after the date of the enactment of this Act.
(c) RECOMMENDATION
TO CONGRESS.—Not later
than July 31, 1999, the Secretary shall submit to Con-
gress a legislative proposal that would, if enacted, estab-
lish the new decorations developed pursuant to subsection
(a). The Secretary shall include with that proposal the
Secretary’s recommendation concerning the need for, and
propriety of, each of the decorations.
(d) COORDINATION.—The Secretary shall carry out
this section in coordination with the Secretaries of the
military departments and the Secretary of Transportation
with regard to the Coast Guard.
SEC. 532. WAIVER OF TIME LIMITATIONS FOR AWARD OF
CERTAIN DECORATIONS TO SPECIFIED PER-
SONS.
(a) WAIVER OF TIME LIMITATION.—Any limitation
established by law or policy for the time within which a
146
recommendation for the award of a military decoration or
award must be submitted shall not apply in the case of
awards of decorations described in subsection (b), the
award of each such decoration having been determined by
the Secretary of the military department concerned to be
warranted in accordance with section 1130 of title 10,
United States Code.
(b) DISTINGUISHED FLYING CROSS.—Subsection (a)
applies to awards of the Distinguished Flying Cross for
service during World War II or Korea (including multiple
awards to the same individual) in the case of each individ-
ual concerning whom the Secretary of the Navy (or an
officer of the Navy acting on behalf of the Secretary) sub-
mitted to the Committee on National Security of the
House of Representatives and the Committee on Armed
Services of the Senate, before the date of the enactment
of this Act, a notice as provided in section 1130(b) of title
10, United States Code, that the award of the Distin-
guished Flying Cross to that individual is warranted and
that a waiver of time restrictions prescribed by law for
recommendation for such award is recommended.
147
SEC. 533. COMMENDATION OF THE NAVY AND MARINE
CORPS PERSONNEL WHO SERVED IN THE
UNITED STATES NAVY ASIATIC FLEET FROM
1910–1942.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) The United States established the Asiatic
Fleet of the Navy in 1910 to protect American na-
tionals, policies, and possessions in the Far East.
(2) The sailors and Marines of the Asiatic Fleet
ensured the safety of United States citizens and for-
eign nationals, and provided humanitarian assistance
in that region during the Chinese civil war, the
Yangtze Flood of 1931, and the outbreak of Sino-
Japanese hostilities.
(3) In 1940, due to deteriorating political rela-
tions and increasing tensions between the United
States and Japan, a reinforced Asiatic Fleet began
concentrating on the defense of the Philippines and
engaged in extensive training to ensure maximum
operational readiness for any eventuality.
(4) Following the declaration of war against
Japan in December 1941, the warships, submarines,
and aircraft of the Asiatic Fleet singly or in task
forces courageously fought many battles against a
superior Japanese armada.
148
(5) The Asiatic Fleet directly suffered the loss
of 22 vessels, 1,826 men killed or missing in action,
and 518 men captured and imprisoned under the
worst of conditions, with many of them dying while
held as prisoners of war.
(b) CONGRESSIONAL COMMENDATION.—Congress—
(1) commends the Navy and Marine Corps per-
sonnel who served in the Asiatic Fleet of the United
States Navy between 1910 and 1942; and
(2) honors those who gave their lives in the line
of duty while serving in the Asiatic Fleet.
SEC. 534. APPRECIATION FOR SERVICE DURING WORLD
WAR I AND WORLD WAR II BY MEMBERS OF
THE NAVY ASSIGNED ON BOARD MERCHANT
SHIPS AS THE NAVAL ARMED GUARD SERV-
ICE.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) The Navy established a special force during
both World War I and World War II, known as the
Naval Armed Guard Service, to protect merchant
ships of the United States from enemy attack by
stationing members of the Navy and weapons on
board those ships.
149
(2) Members of the Naval Armed Guard Service
served on 6,236 merchant ships during World War
II, of which 710 were sunk by enemy action.
(3) Over 144,900 members of the Navy served
in the Naval Armed Guard Service during World
War II as officers, gun crewmen, signalmen, and ra-
diomen, of whom 1,810 were killed in action.
(4) The efforts of the members of the Naval
Armed Guard Service played a significant role in the
safe passage of United States merchant ships to
their destinations in the Soviet Union and various
locations in western Europe and the Pacific Theater.
(5) The efforts of the members of the Navy who
served in the Naval Armed Guard Service have been
largely overlooked due to the rapid disbanding of the
service after World War II and lack of adequate
records.
(6) Recognition of the service of the naval per-
sonnel who served in the Naval Armed Guard Serv-
ice is highly warranted and long overdue.
(b) SENSE OF THE CONGRESS.—Congress expresses
its appreciation, and the appreciation of the American peo-
ple, for the dedicated service performed during World War
I and World War II by members of the Navy assigned
150
as gun crews on board merchant ships as part of the Naval
Armed Guard Service.
SEC. 535. SENSE OF THE CONGRESS REGARDING THE HER-
OISM, SACRIFICE, AND SERVICE OF THE MILI-
TARY FORCES OF SOUTH VIETNAM, OTHER
NATIONS, AND INDIGENOUS GROUPS IN CON-
NECTION WITH THE UNITED STATES ARMED
FORCES DURING THE VIETNAM CONFLICT.
(a) FINDINGS.—Congress finds the following:
(1) South Vietnam, Australia, South Korea,
Thailand, New Zealand, and the Philippines contrib-
uted military forces, together with the United
States, during military operations conducted in
Southeast Asia during the Vietnam conflict.
(2) Indigenous groups, such as the Hmong,
Nung, Montagnard, Kahmer, Hoa Hao, and Cao Dai
contributed military forces, together with the United
States, during military operations conducted in
Southeast Asia during the Vietnam conflict.
(3) The contributions of these combat forces
continued through long years of armed conflict.
(4) As a result, in addition to the United States
casualties exceeding 210,000, this willingness to par-
ticipate in the Vietnam conflict resulted in the
death, and wounding of more than 1,000,000 mili-
151
tary personnel from South Vietnam and 16,000 from
other allied nations.
(5) The service of the Vietnamese, indigenous
groups, and other allied nations was repeatedly
marked by exceptional heroism and sacrifice, with
particularly noteworthy contributions being made by
the Vietnamese airborne, commando, infantry and
ranger units, the Republic of Korea marines, the
Capital and White Horse divisions, the Royal Thai
Army Black Panther Division, the Royal Australian
Regiment, the New Zealand ‘‘V’’ force, and the 1st
Philippine Civic Action Group.
(b) SENSE OF THE CONGRESS.—Congress recognizes
and honors the members and former members of the mili-
tary forces of South Vietnam, the Republic of Korea,
Thailand, Australia, New Zealand, and the Philippines, as
well as members of the Hmong, Nung, Montagnard,
Kahmer, Hoa Hao, and Cao Dai, for their heroism, sac-
rifice and service in connection with United States Armed
Forces during the Vietnam conflict.
152
SEC. 536. SENSE OF THE CONGRESS REGARDING THE HER-
OISM, SACRIFICE, AND SERVICE OF FORMER
SOUTH VIETNAMESE COMMANDOS IN CON-
NECTION 
WITH 
UNITED 
STATES 
ARMED
FORCES DURING THE VIETNAM CONFLICT.
(a) FINDINGS.—Congress finds the following:
(1) South Vietnamese commandos were re-
cruited by the United States as part of OPLAN 34A
or its predecessor or OPLAN 35 from 1961 to 1970.
(2) The commandos conducted covert oper-
ations in North Vietnam during the Vietnam con-
flict.
(3) Many of the commandos were captured and
imprisoned by North Vietnamese forces, some for as
long as 20 years.
(4) The commandos served and fought proudly
during the Vietnam conflict.
(5) Many of the commandos lost their lives
serving in operations conducted by the United States
during the Vietnam conflict.
(6) Many of the Vietnamese commandos now
reside in the United States.
(b) SENSE OF THE CONGRESS—Congress recognizes
and honors the former South Vietnamese commandos for
their heroism, sacrifice, and service in connection with
United States armed forces during the Vietnam conflict.
153
Subtitle 
E—Administration 
of
Agencies Responsible for Re-
view and Correction of Military
Records
SEC. 541. PERSONNEL FREEZE.
(a) LIMITATION.—During fiscal years 1999, 2000,
and 2001, the Secretary of a military department may not
carry out any reduction in the number of military and ci-
vilian personnel assigned to duty with the service review
agency for that military department below the baseline
number for that agency until—
(1) the Secretary submits to Congress a report
that describes the reduction proposed to be made,
provides the Secretary’s rationale for that reduction,
and specifies the number of such personnel that
would be assigned to duty with that agency after the
reduction; and
(2) a period of 90 days has elapsed after the
date on which such report is submitted.
(b) BASELINE NUMBER.—The baseline number for a
service review agency under this section is—
(1) for purposes of the first report with respect
to a service review agency under this section, the
number of military and civilian personnel assigned to
duty with that agency as of October 1, 1997; and
154
(2) for purposes of any subsequent report with
respect to a service review agency under this section,
the number of such personnel specified in the most
recent report with respect to that agency under this
section.
(c) SERVICE REVIEW AGENCY DEFINED.—In this
section, the term ‘service review agency’ means—
(1) with respect to the Department of the
Army, the Army Review Boards Agency;
(2) with respect to the Department of the
Navy, the Board for Correction of Naval Records;
and
(3) with respect to the Department of the Air
Force, the Air Force Review Boards Agency.
SEC. 542. PROFESSIONAL STAFF.
(a) IN GENERAL.—(1) Chapter 79 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 1555. Professional staff
‘‘(a) The Secretary of each military department shall
assign to the staff of the service review agency of that
military department at least one attorney and at least one
physician. Such assignments shall be made on a perma-
nent, full-time basis and may be made from members of
the armed forces or civilian employees.
155
‘‘(b) Personnel assigned pursuant to subsection (a)—
‘‘(1) shall work under the supervision of the di-
rector or executive director (as the case may be) of
the service review agency; and
‘‘(2) shall be assigned duties as advisers to the
director or executive director or other staff members
on legal and medical matters, respectively, that are
being considered by the agency.
‘‘(c) In this section, the term ‘service review agency’
means—
‘‘(1) with respect to the Department of the
Army, the Army Review Boards Agency;
‘‘(2) with respect to the Department of the
Navy, the Board for Correction of Naval Records;
and
‘‘(3) with respect to the Department of the Air
Force, the Air Force Review Boards Agency.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘1555. Professional staff.’’.
(b) EFFECTIVE DATE.—Section 1555 of title 10,
United States Code, as added by subsection (a), shall take
effect 180 days after the date of the enactment of this
Act.
156
SEC. 543. EX PARTE COMMUNICATIONS.
(a) IN GENERAL.—(1) Chapter 79 of title 10, United
States Code, is amended by adding after section 1555, as
added by section 542(a)(1), the following new section:
‘‘§ 1556. Ex parte communications prohibited
‘‘(a) IN GENERAL.—The Secretary of each military
department shall ensure that an applicant seeking correc-
tive action by the Army Review Boards Agency, the Air
Force Review Boards Agency, or the Board for Correction
of Naval Records, as the case may be, is provided a copy
of all correspondence and communications (including sum-
maries of verbal communications) to or from the agency
or board, or a member of the staff of the agency or board,
with an entity or person outside the agency or board that
pertain directly to the applicant’s case or have a material
effect on the applicant’s case.
‘‘(b) EXCEPTIONS.—Subsection (a) does not apply to
the following:
‘‘(1) Classified information.
‘‘(2) Information the release of which is other-
wise prohibited by law or regulation.
‘‘(3) Any record previously provided to the ap-
plicant or known to be possessed by the applicant.
‘‘(4) Any correspondence that is purely admin-
istrative in nature.
157
‘‘(5) Any military record that is (or may be)
provided to the applicant by the Secretary of the
military department or other source.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding after the item relating to
1555, as added by section 542(a)(2), the following new
item:
‘‘1556. Ex parte communications prohibited.’’.
(b) EFFECTIVE DATE.—Section 1556 of title 10,
United States Code, as added by subsection (a), shall
apply with respect to correspondence and communications
made 60 days or more after the date of the enactment
of this Act.
SEC. 544. TIMELINESS STANDARDS.
(a) IN GENERAL.—Chapter 79 of title 10, United
States Code, is amended by adding after section 1556, as
added by section 543(a)(1), the following new section:
‘‘§ 1557. Timeliness standards for disposition of cases
before Corrections Boards
‘‘(a) TEN-MONTH CLEARANCE PERCENTAGE.—Of
the cases accepted for consideration by a Corrections
Board during a period specified in the following table, the
percentage on which final action must be completed within
10 months of receipt (other than for those cases consid-
ered suitable for administrative correction) is as follows:
158
The percentage on which final
‘‘For cases accepted
action must be completed
during—
within 10 months of receipt
is—
the period of fiscal years 2001 and 2002 ................................
the period of fiscal years 2003 and 2004 ................................
the period of fiscal years 2005, 2006, and 2007 .....................
the period of fiscal years 2008, 2009, and 2010 .....................
the period of any fiscal year after fiscal year 2010 .................
90.
‘‘(b) CLEARANCE DEADLINE FOR ALL CASES.—Ef-
fective October 1, 2002, final action on all cases accepted
for consideration by a Corrections Board (other than those
cases considered suitable for administrative correction)
shall be completed within 18 months of receipt.
‘‘(c) WAIVER AUTHORITY.—The Secretary of the
military department concerned may exclude an individual
case from the timeliness standards prescribed in sub-
sections (a) and (b) if the Secretary determines that the
case warrants a longer period of consideration. The au-
thority of the Secretary of a military department under
this subsection may not be delegated.
‘‘(d) REPORTS ON FAILURE TO MEET TIMELINESS
STANDARDS.—The Secretary of the military department
concerned shall submit to the Committee on Armed Serv-
ices of the Senate and the Committee on National Security
of the House of Representatives a report not later than
June 1 following any fiscal year during which the Correc-
tions Board of that Secretary’s military department was
unable to meet the timeliness standards in subsections (a)
and (b). The report shall specify the reasons why the
159
standard could not be met and the corrective actions initi-
ated to ensure compliance in the future. The report shall
also specify the number of waivers granted under sub-
section (c) during that fiscal year.
‘‘(e) CORRECTIONS BOARD DEFINED.—In this sec-
tion, the term ‘Corrections Board’ means—
‘‘(1) with respect to the Department of the
Army, the Army Board for Correction of Military
Records;
‘‘(2) with respect to the Department of the
Navy, the Board for Correction of Naval Records;
and
‘‘(3) with respect to the Department of the Air
Force, the Air Force Board for Correction of Mili-
tary Records.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
after the item relating to section 1556, as added by section
543(a)(2), the following new item:
‘‘1557. Timeliness standards for disposition of cases before Corrections
Boards.’’.
160
Subtitle F—Other Matters
SEC. 551. ONE-YEAR EXTENSION OF CERTAIN FORCE DRAW-
DOWN TRANSITION AUTHORITIES RELATING
TO PERSONNEL MANAGEMENT AND BENE-
FITS.
(a) EARLY RETIREMENT AUTHORITY FOR ACTIVE
DUTY MEMBERS.—Section 4403(i) of the National De-
fense Authorization Act for Fiscal Year 1993 (Public Law
102–484; 10 U.S.C. 1293 note) is amended by striking
out ‘‘October 1, 1999’’ and inserting in lieu thereof ‘‘Octo-
ber 1, 2000’’.
(b) 
SSB 
AND
VSI.—Sections 
1174a(h) 
and
1175(d)(3) of title 10, United States Code, are amended
by striking out ‘‘September 30, 1999’’ and inserting in
lieu thereof ‘‘September 30, 2000’’.
(c) SELECTIVE EARLY RETIREMENT BOARDS.—Sec-
tion 638a(a) of such title is amended by striking out ‘‘dur-
ing the nine-year period beginning on October 1, 1990’’
and inserting in lieu thereof ‘‘during the period beginning
on October 1, 1990, and ending on September 30, 2000’’.
(d) TIME-IN-GRADE REQUIREMENT FOR RETENTION
OF GRADE UPON VOLUNTARY RETIREMENT.—Section
1370(a)(2)(A) of such title is amended by striking out
‘‘during the nine-year period beginning on October 1,
1990’’ and inserting in lieu thereof ‘‘during the period be-
161
ginning on October 1, 1990, and ending on September 30,
2000’’.
(e) LENGTH OF COMMISSIONED SERVICE FOR VOL-
UNTARY
RETIREMENT
AS
AN
OFFICER.—Sections
3911(b), 6323(a)(2), and 8911(b) of such title are amend-
ed by striking out ‘‘during the nine-year period beginning
on October 1, 1990’’ and inserting in lieu thereof ‘‘during
the period beginning on October 1, 1990, and ending on
September 30, 2000’’.
(f) RETIREMENT OF CERTAIN LIMITED DUTY OFFI-
CERS OF THE NAVY AND MARINE CORPS.—(1) Sections
633 and 634 of such title are amended by striking out
‘‘October 1, 1999’’ in the last sentence and inserting in
lieu thereof ‘‘October 1, 2000’’.
(2) Section 6383 of such title is amended—
(A) in subsection (a)(5), by striking out ‘‘Octo-
ber 1, 1999’’ and inserting in lieu thereof ‘‘October
1, 2000’’; and
(B) in subsection (k), by striking out ‘‘October
1, 1999’’ in the last sentence and inserting in lieu
thereof ‘‘October 1, 2000’’.
(g) TRAVEL
AND TRANSPORTATION ALLOWANCES
AND STORAGE OF BAGGAGE AND HOUSEHOLD EFFECTS
FOR CERTAIN MEMBERS BEING INVOLUNTARILY SEPA-
RATED.—Sections 
404(c)(1)(C), 
404(f)(2)(B)(v),
162
406(a)(2)(B)(v), and 406(g)(1)(C) of title 37, United
States Code, and section 503(c) of the National Defense
Authorization Act for Fiscal Year 1991 (Public Law 101–
510; 37 U.S.C. 406 note) are amended by striking out
‘‘during the nine-year period beginning on October 1,
1990’’ and inserting in lieu thereof ‘‘during the period be-
ginning on October 1, 1990, and ending on September 30,
2000’’.
(h) EDUCATIONAL LEAVE RELATING TO CONTINU-
ING PUBLIC AND COMMUNITY SERVICE.—Section 4463(f)
of the National Defense Authorization Act for Fiscal Year
1993 (Public Law 102–484; 10 U.S.C. 1143a note) is
amended by striking out ‘‘September 30, 1999’’ and in-
serting in lieu thereof ‘‘September 30, 2000’’.
(i) TRANSITIONAL HEALTH, COMMISSARY, AND FAM-
ILY HOUSING BENEFITS.—
(1) HEALTH CARE.—Section 1145 of title 10,
United States Code, is amended—
(A) in subsections (a)(1) and (c)(1), by
striking out ‘‘during the nine-year period begin-
ning on October 1, 1990’’ and inserting in lieu
thereof ‘‘during the period beginning on Octo-
ber 1, 1990, and ending on September 30,
2000’’; and
163
(B) in subsection (e), by striking out ‘‘dur-
ing the five-year period beginning on October 1,
1994’’ and inserting in lieu thereof ‘‘during the
period beginning on October 1, 1994, and end-
ing on September 30, 2000’’.
(2) COMMISSARY AND EXCHANGE BENEFITS.—
Section 1146 of such title is amended—
(A) by striking out ‘‘during the nine-year
period beginning on October 1, 1990’’ and in-
serting in lieu thereof ‘‘during the period begin-
ning on October 1, 1990, and ending on Sep-
tember 30, 2000’’; and
(B) by striking out ‘‘during the five-year
period beginning on October 1, 1994’’ and in-
serting in lieu thereof ‘‘during the period begin-
ning on October 1, 1994, and ending on Sep-
tember 30, 2000’’.
(3) USE
OF
MILITARY
HOUSING.—Section
1147(a) of such title is amended—
(A) in paragraph (1), by striking out ‘‘dur-
ing the nine-year period beginning on October
1, 1990’’ and inserting in lieu thereof ‘‘during
the period beginning on October 1, 1990, and
ending on September 30, 2000’’; and
164
(B) in paragraph (2), by striking out ‘‘dur-
ing the five-year period beginning on October 1,
1994’’ and inserting in lieu thereof ‘‘during the
period beginning on October 1, 1994, and end-
ing on September 30, 2000’’.
(j) ENROLLMENT OF DEPENDENTS IN DEFENSE DE-
PENDENTS’ EDUCATION SYSTEM.—Section 1407(c)(1) of
the Defense Dependents’ Education Act of 1978 (20
U.S.C. 926(c)(1)) is amended by striking out ‘‘during the
nine-year period beginning on October 1, 1990’’ and in-
serting in lieu thereof ‘‘during the period beginning on Oc-
tober 1, 1990, and ending on September 30, 2000’’.
(k) FORCE REDUCTION TRANSITION PERIOD DEFI-
NITION.—Section 4411 of the National Defense Author-
ization Act for Fiscal Year 1993 (10 U.S.C. 12681 note)
is amended by striking out ‘‘September 30, 1999’’ and in-
serting in lieu thereof ‘‘September 30, 2000’’.
(l) TEMPORARY SPECIAL AUTHORITY FOR FORCE
REDUCTION PERIOD RETIREMENTS.—Section 4416(b)(1)
of the National Defense Authorization Act for Fiscal Year
1993 (10 U.S.C. 12681 note) is amended by striking out
‘‘October 1, 1999’’ and inserting in lieu thereof ‘‘October
1, 2000’’.
(m) RETIRED PAY FOR NON-REGULAR SERVICE.—
(1) Section 12731(f) of title 10, United States Code, is
165
amended by striking out ‘‘September 30, 1999’’ and in-
serting in lieu thereof ‘‘September 30, 2000’’.
(2) Section 12731a of such title is amended in sub-
sections (a)(1)(B) and (b), by striking out ‘‘October 1,
1999’’ and inserting in lieu thereof ‘‘October 1, 2000’’.
(n) AFFILIATION
WITH
GUARD
AND
RESERVE
UNITS; WAIVER
OF
CERTAIN
LIMITATIONS.—Section
1150(a) of such title is amended by striking out ‘‘during
the nine-year period beginning on October 1, 1990’’ and
inserting in lieu thereof ‘‘during the period beginning on
October 1, 1990, and ending on September 30, 2000’’.
(o) RESERVE
MONTGOMERY
GI BILL.—Section
16133(b)(1)(B) of such title is amended by striking out
‘‘September 30, 1999’’ and inserting in lieu thereof ‘‘Sep-
tember 30, 2000’’.
SEC. 552. LEAVE WITHOUT PAY FOR ACADEMY CADETS AND
MIDSHIPMEN.
(a) AUTHORITY FOR LEAVE WITHOUT PAY.—Section
702 of title 10, United States Code, is amended by adding
at the end the following new subsection:
‘‘(c)(1) The Secretary concerned may place an acad-
emy cadet or midshipman on involuntary leave without
pay if, under regulations prescribed by the Secretary con-
cerned, the Superintendent of the Academy at which the
cadet or midshipman is admitted—
166
‘‘(A) has recommended that the cadet or mid-
shipman be dismissed or discharged;
‘‘(B) has directed the cadet or midshipman re-
turn to the Academy to repeat an academic semester
or year;
‘‘(C) has otherwise recommended to the Sec-
retary for good cause that the cadet or midshipman
be placed on involuntary leave without pay.
‘‘(2) In this subsection, the term ‘academy cadet or
midshipman’ means—
‘‘(A) a cadet of the United States Military
Academy;
‘‘(B) a midshipman of the United States Naval
Academy;
‘‘(C) a cadet of the United States Air Force
Academy; or
‘‘(D) a cadet of the United States Coast Guard
Academy.’’.
(b) EFFECTIVE DATE.—Subsection (c) of section 702
of title 10, United States Code, as added by subsection
(a), shall apply with respect to academy cadets and mid-
shipmen (as defined in that subsection) who are placed
on involuntary leave after the date of the enactment of
this Act.
167
SEC. 553. PROVISION FOR RECOVERY, CARE, AND DISPOSI-
TION OF THE REMAINS OF ALL MEDICALLY
RETIRED MEMBERS.
(a) IN GENERAL.—Section 1481(a) of title 10,
United States Code, is amended—
(1) in paragraph (1), by striking out ‘‘, or
member of an armed force without component,’’; and
(2) in paragraph (7)—
(A) by striking out ‘‘United States’’; and
(B) by striking out ‘‘for a period of more
than 30 days,’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a)(2) apply with respect to persons dying on
or after the date of the enactment of this Act.
SEC. 554. CONTINUED ELIGIBILITY UNDER VOLUNTARY
SEPARATION 
INCENTIVE 
PROGRAM 
FOR
MEMBERS WHO INVOLUNTARILY LOSE MEM-
BERSHIP IN A RESERVE COMPONENT.
(a) CONTINUED ELIGIBILITY.—Section 1175(a) of
title 10, United States Code, is amended by inserting be-
fore the period at the end ‘‘, or for the period described
in section 1175(e)(1) of this section if the member be-
comes ineligible for retention in an active or inactive sta-
tus in a reserve component because of age, years of serv-
ice, failure to select for promotion, or medical disqualifica-
tion, so long as such ineligibility does not result from de-
168
liberate action on the part of the member with the intent
to avoid retention in an active or inactive status in a re-
serve component.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) applies with respect to any person provided
a voluntary separation incentive under section 1175 of
title 10, United States Code (whether before, on, or after
the date of the enactment of this Act).
SEC. 555. DEFINITION OF FINANCIAL INSTITUTION FOR DI-
RECT DEPOSIT OF PAY.
(a) SERVICEMEMBERS REIMBURSEMENT
FOR EX-
PENSES DUE TO GOVERNMENT ERROR.—Paragraph (1)
of section 1053(d) of title 10, United States Code, is
amended to read as follows:
‘‘(1) The term ‘financial institution’ means a
bank, savings and loan association, or similar insti-
tution or a credit union chartered by the United
States or a State.’’.
(b) CIVILIAN EMPLOYEES REIMBURSEMENT FOR EX-
PENSES DUE TO GOVERNMENT ERROR.—Paragraph (1)
of section 1594(d) of such title is amended to read as fol-
lows:
‘‘(1) The term ‘financial institution’ means a
bank, savings and loan association, or similar insti-
169
tution or a credit union chartered by the United
States or a State.’’.
SEC. 556. INCREASE IN MAXIMUM AMOUNT FOR COLLEGE
FUND PROGRAM.
(a) INCREASE IN MAXIMUM RATE FOR ACTIVE COM-
PONENT
MONTGOMERY
GI BILL
KICKER.—Section
3015(d) of title 38, United States Code, is amended—
(1) by inserting ‘‘, at the time the individual
first becomes a member of the Armed Forces,’’ after
‘‘Secretary of Defense, may’’; and
(2) by striking out ‘‘$400’’ and all that follows
through ‘‘that date’’ and inserting in lieu thereof
‘‘$950 per month’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 1999, and
shall apply with respect to individuals who first become
members of the Armed Forces on or after that date.
SEC. 557. CENTRAL IDENTIFICATION LABORATORY, HA-
WAII.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that the Central Identification Laboratory, Ha-
waii, of the Department of the Army is an important ele-
ment of the Department of Defense and is critical to the
full accounting of members of the Armed Forces who have
170
been classified as POW/MIAs or are otherwise unac-
counted for.
(b) REQUIRED STAFFING LEVEL.—The Secretary of
Defense shall provide sufficient personnel to fill all author-
ized personnel positions of the Central Identification Lab-
oratory, Hawaii, Department of the Army. Those person-
nel shall be drawn from members of the Army, Navy, Air
Force, and Marine Corps and from civilian personnel, as
appropriate, considering the proportion of POW/MIAs
from each service.
(c) JOINT MANNING PLAN.—The Secretary of De-
fense shall develop and implement, not later than March
31, 2000, a joint manning plan to ensure the appropriate
participation of the four services in the staffing of the
Central Identification Laboratory, Hawaii, as required by
subsection (b).
(d) LIMITATION ON REDUCTIONS.—The Secretary of
the Army may not carry out any personnel reductions (in
authorized or assigned personnel) at the Central Identi-
fication Laboratory, Hawaii, until the joint manning plan
required by subsection (c) is implemented.
171
SEC. 558. HONOR GUARD DETAILS AT FUNERALS OF VETER-
ANS.
(a) IN GENERAL.—(1) Chapter 75 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 1491. Honor guard details at funerals of veterans
‘‘(a) AVAILABILITY.—The Secretary of a military de-
partment shall, upon request, provide an honor guard de-
tail (or ensure that an honor guard detail is provided) for
the funeral of any veteran.
‘‘(b) COMPOSITION OF HONOR GUARD DETAILS.—
The Secretary of each military department shall ensure
that an honor guard detail for the funeral of a veteran
consists of not less than three persons and (unless a bugler
is part of the detail) has the capability to play a recorded
version of Taps.
‘‘(c) PERSONS
FORMING
HONOR
GUARDS.—An
honor guard detail may consist of members of the armed
forces or members of veterans organizations or other orga-
nizations approved for purposes of this section under regu-
lations prescribed by the Secretary of Defense. The Sec-
retary of a military department may provide transpor-
tation, or reimbursement for transportation, and expenses
for a person who participates in an honor guard detail
under this section and is not a member of the armed forces
or an employee of the United States.
172
‘‘(d) REGULATIONS.—The Secretary of Defense shall
by regulation establish a system for selection of units of
the armed forces and other organizations to provide honor
guard details. The system shall place an emphasis on bal-
ancing the funeral detail workload among the units and
organizations providing honor guard details in an equi-
table manner as they are able to respond to requests for
such details in terms of geographic proximity and available
resources. The Secretary shall provide in such regulations
that the armed force in which a veteran served shall not
be considered to be a factor when selecting the military
unit or other organization to provide an honor guard detail
for the funeral of the veteran.
‘‘(e) ANNUAL REPORT.—The Secretary of Defense
shall submit to the Committee on Armed Services of the
Senate and the Committee on National Security of the
House of Representatives a report not later than January
31 of each year beginning with 2001 and ending with
2005 on the experience of the Department of Defense
under this section. Each such report shall provide data
on the number of funerals supported under this section,
cost for that support, shown by manpower and other cost
factors, and the number and costs of funerals supported
by each participating organization. The data in the report
173
shall be presented in a standard format, regardless of mili-
tary department or other organization.
‘‘(f) VETERAN DEFINED.—In this section, the term
‘veteran’ has the meaning given that term in section
101(2) of title 38, United States Code.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘1491. Honor guard details at funerals of veterans.’’.
(b) TREATMENT
OF
PERFORMANCE
OF
HONOR
GUARD FUNCTIONS BY RESERVES.—(1) Chapter 1215 of
title 10, United States Code, is amended by adding at the
end the following new section:
‘‘§ 12552. Funeral honor guard functions: prohibition
of treatment as drill or training
‘‘Performance by a Reserve of honor guard functions
at the funeral of a veteran may not be considered to be
a period of drill or training otherwise required.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘12552. Funeral honor guard functions: prohibition of treatment as drill or
training.’’.
(c) REPEAL OF LIMITATION ON AVAILABILITY OF
FUNDS FOR HONOR GUARD FUNCTIONS BY NATIONAL
174
GUARD.—Section 114 of title 32, United States Code, is
amended—
(1) by striking out ‘‘(a)’’; and
(2) by striking out subsection (b).
(d) APPLICABILITY.—The amendments made by this
section shall apply to burials of veterans that occur on
or after October 1, 1999.
(e) STUDY.—The Secretary of Defense, in coordina-
tion with the Secretary of Veterans Affairs, shall study
alternative means for the provision of honor guard details
at funerals of veterans. Not later than March 31, 1999,
the Secretary 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 setting
forth the results of the study and the Secretary’s views
and recommendations.
(f) CONSULTATION WITH VETERANS SERVICE ORGA-
NIZATIONS.—Before prescribing the initial regulations
under section 1491 of title 10, United States Code, as
added by subsection (a), the Secretary of Defense shall
consult with veterans service organizations to determine
the views of those organizations regarding methods for
providing honor guard details at funerals for veterans,
suggestions for organizing the system to provide those de-
175
tails, and estimates of the resources that those organiza-
tions could provide for honor guard details for veterans.
SEC. 559. APPLICABILITY TO ALL PERSONS IN CHAIN OF
COMMAND OF POLICY REQUIRING EXEM-
PLARY CONDUCT BY COMMANDING OFFI-
CERS AND OTHERS IN AUTHORITY IN THE
ARMED FORCES.
(a) IN GENERAL.—(1) Chapter 3 of title 10, United
States Code, is amended by inserting after section 121 the
following new section:
‘‘§ 121a. Requirement of exemplary conduct by civil-
ians in chain of command
‘‘The President, as Commander in Chief, and the
Secretary of Defense are required (in the same manner
that commanding officers and others in authority in the
Armed Forces are required)—
‘‘(1) to show in themselves a good example of
virtue, honor, and patriotism and to subordinate
themselves to those ideals;
‘‘(2) to be vigilant in inspecting the conduct of
all persons who are placed under their command;
‘‘(3) to guard against and to put an end to all
dissolute and immoral practices and to correct, ac-
cording to the laws and regulations of the armed
forces, all persons who are guilty of them; and
176
‘‘(4) to take all necessary and proper measures,
under the laws, regulations, and customs of the
armed forces, to promote and safeguard the morale,
the physical well-being, and the general welfare of
the officers and enlisted persons under their com-
mand or charge.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 121 the following new
item:
‘‘121a. Requirement of exemplary conduct by civilians in chain of command.’’.
SEC. 560. REPORT ON PRISONERS TRANSFERRED FROM
UNITED STATES DISCIPLINARY BARRACKS,
FORT LEAVENWORTH, KANSAS, TO FEDERAL
BUREAU OF PRISONS.
(a) REPORT.—Not later than 90 days after the date
of the enactment of this Act, the Secretary of Defense
shall submit to Congress a report, to be prepared by the
General Counsel of the Department of Defense, concern-
ing the decision of the Secretary of the Army in 1994 to
transfer approximately 500 prisoners from the United
States Disciplinary Barracks, Fort Leavenworth, Kansas,
to the Federal Bureau of Prisons.
(b) MATTERS TO BE INCLUDED.—The Secretary
shall include in the report the following:
177
(1) A description of the basis for the selection
of prisoners to be transferred, particularly in light of
the fact that many of the prisoners transferred are
minimum or medium security prisoners, who are
considered to have the best chance for rehabilitation,
and whether the transfer of those prisoners indicates
a change in Department of Defense policy regarding
the rehabilitation of military prisoners.
(2) A comparison of the historical recidivism
rates of prisoners released from the United States
Disciplinary Barracks and the Federal Bureau of
Prisons, together with a description of any plans of
the Army to track the parole and recidivism rates of
prisoners transferred to the Federal Bureau of Pris-
ons and whether it has tracked those factors for pre-
vious transferees.
(3) A description of the projected future flow of
prisoners into the new United States Disciplinary
Barracks being constructed at Fort Leavenworth,
Kansas, and whether the Secretary of the Army
plans to automatically send new prisoners to the
Federal Bureau of Prisons without serving at the
United States Disciplinary Barracks if that Bar-
racks is at capacity and whether the Memorandum
178
of Understanding between the Federal Bureau of
Prisons and the Army covers that possibility.
(4) A description of the cost of incarcerating a
prisoner in the Federal Bureau of Prisons compared
to the United States Disciplinary Barracks and the
assessment of the Secretary as to the extent to
which the transfer of prisoners to the Federal Bu-
reau of Prisons by the Secretary of the Army is
made in order to shift a budgetary burden.
(c) MONITORING.—During fiscal years 1999 through
2003, the Secretary of the Army shall track the parole
and recidivism rates of prisoners transferred from the
United States Disciplinary Barracks, Fort Leavenworth,
Kansas, to the Federal Bureau of Prisons.
SEC. 561. REPORT ON PROCESS FOR SELECTION OF MEM-
BERS FOR SERVICE ON COURTS-MARTIAL.
(a) REPORT REQUIRED.—Not later than April 15,
1999, the Secretary of Defense shall submit to Congress
a report on the method of selection of members of the
Armed Forces to serve on courts-martial.
(b) MATTERS TO BE CONSIDERED.—In preparing
the report, the Secretary shall—
(1) direct the Secretaries of the military depart-
ments to develop a plan for random selection of
members of courts-martial , subject to the provisions
179
relating to service on courts-martial specified in sec-
tion 825(d)(2) of title 10, United States Code (arti-
cle 25(d)(2) of the Uniform Code of Military Jus-
tice), as a possible replacement for the current sys-
tem of selection by the convening authority; and
(2) obtain the views of the members of the com-
mittee referred to in section 946 of such title
(known as the ‘‘Code Committee’’).
SEC. 562. STUDY OF REVISING THE TERM OF SERVICE OF
MEMBERS OF THE UNITED STATES COURT OF
APPEALS FOR THE ARMED FORCES.
Not later than April 15, 1999, the Secretary of De-
fense shall submit to Congress a report on the desirability
of revising the term of appointment of judges of the
United States Court of Appeals for the Armed Forces so
that the term of a judge on that court is for a period of
15 years or until the judge attains the age of 65, which-
ever is later. In preparing the report, the Secretary shall
obtain the view of the members of the committee referred
to in section 946 of title 10, United States Code, (known
as the ‘‘Code Committee’’).
SEC. 563. STATUS OF CADETS AT THE MERCHANT MARINE
ACADEMY.
(a) STATUS OF CADETS.—Any citizen of the United
States appointed as a cadet at the United States Merchant
180
Marine Academy shall be considered to be a member of
the United States Naval Reserve.
(b) ELIGIBILITY.—The Secretary of Defense shall
provide that cadets of the United States Merchant Marine
Academy shall be issued an identification card (referred
to as a ‘‘military ID card’’) and shall be entitled to all
rights and privileges in accordance with the same eligi-
bility criteria as apply to other members of the Ready Re-
serve of the reserve components of the Armed Forces.
(c) COORDINATION WITH SECRETARY OF TRANSPOR-
TATION.—The Secretary of Defense shall carry out this
section in coordination with the Secretary of Transpor-
tation.
TITLE VI—COMPENSATION AND
OTHER PERSONNEL BENEFITS
Subtitle A—Pay and Allowances
SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 1999.
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—Ex-
cept as provided in subsection (b), the adjustment, to be-
come effective during fiscal year 1999, required by section
1009 of title 37, United States Code, in the rate of month-
ly basic pay authorized members of the uniformed services
by section 203(a) of such title shall not be made.
181
(b) INCREASE IN BASIC PAY.—Effective on January
1, 1999, the rates of basic pay of members of the uni-
formed services shall be increased by the greater of—
(1) 3.6 percent; or
(2) the percentage increase determined under
subsection (c) of section 1009 of title 37, United
States Code, by which the monthly basic pay of
members would be adjusted under subsection (a) of
that section on that date in the absence of sub-
section (a) of this section.
SEC. 602. BASIC ALLOWANCE FOR HOUSING OUTSIDE THE
UNITED STATES.
(a) PAYMENT OF CERTAIN EXPENSES RELATED TO
OVERSEAS HOUSING.—Section 403(c) of title 37, United
States Code, is amended by adding at the end the follow-
ing new paragraph:
‘‘(3)(A) In the case of a member of the uniformed
services authorized to receive an allowance under para-
graph (1), the Secretary concerned may make a lump-sum
payment to the member for required deposits and advance
rent, and for expenses relating thereto, that are—
‘‘(i) incurred by the member in occupying pri-
vate housing outside of the United States; and
‘‘(ii) authorized or approved under regulations
prescribed by the Secretary concerned.
182
‘‘(B) Expenses for which a member may be reim-
bursed under this paragraph may include losses relating
to housing that are sustained by the member as a result
of fluctuations in the relative value of the currencies of
the United States and the foreign country in which the
housing is located.
‘‘(C) The Secretary concerned shall recoup the full
amount of any deposit or advance rent payments made
by the Secretary under subparagraph (A), including any
gain resulting from currency fluctuations between the time
of payment and the time of recoupment.’’.
(b) CONFORMING AMENDMENT.—Section 405 of title
37, United States Code, is amended by striking out sub-
section (c).
(c) RETROACTIVE APPLICATION.—The reimburse-
ment authority provided by section 403(c)(3)(B) of title
37, United States Code, as added by subsection (a), ap-
plies with respect to losses relating to housing that are
sustained, on or after July 1, 1997, by a member of the
uniformed services as a result of fluctuations in the rel-
ative value of the currencies of the United States and the
foreign country in which the housing is located.
183
SEC. 603. BASIC ALLOWANCE FOR SUBSISTENCE FOR RE-
SERVES.
(a) IN GENERAL.—Section 402 of title 37, United
States Code, is amended—
(1) by redesignating subsections (e) and (f) as
subsections (f) and (g), respectively; and
(2) by inserting after subsection (d) the follow-
ing new subsection:
‘‘(e) SPECIAL RULE FOR CERTAIN ENLISTED RE-
SERVE MEMBERS.—Unless entitled to basic pay under
section 204 of this title, an enlisted member of a reserve
component may receive, at the discretion of the Secretary
concerned, rations in kind, or a part thereof, when the
member’s instruction or duty periods, as described in sec-
tion 206(a) of this title, total at least eight hours in a
calendar day. The Secretary concerned may provide an en-
listed member who could be provided rations in kind under
the preceding sentence with a commutation when rations
in kind are not available.’’.
(b) APPLICATION DURING TRANSITIONAL PERIOD.—
Section 602(d)(1) of the National Defense Authorization
Act for Fiscal Year 1998 (Public Law 105–85; 37 U.S.C.
402 note) is amended by adding at the end the following
new subparagraph:
‘‘(D) SPECIAL
RULE
FOR
CERTAIN
EN-
LISTED RESERVE MEMBERS.—Unless entitled to
184
basic pay under section 204 of title 37, United
States Code, an enlisted member of a reserve
component (as defined in section 101(24) of
such title) may receive, at the discretion of the
Secretary concerned (as defined in section
101(5) of such title), rations in kind, or a part
thereof, when the member’s instruction or duty
periods (as described in section 206(a) of such
title) total at least eight hours in a calendar
day. The Secretary concerned may provide an
enlisted member who could be provided rations
in kind under the preceding sentence with a
commutation when rations in kind are not
available.’’.
Subtitle B—Bonuses and Special
and Incentive Pays
SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES
AND SPECIAL PAY AUTHORITIES FOR RE-
SERVE FORCES.
(a) SPECIAL PAY FOR HEALTH PROFESSIONALS IN
CRITICALLY
SHORT
WARTIME
SPECIALTIES.—Section
302g(f) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1999’’ and inserting in lieu
thereof ‘‘September 30, 2000’’.
185
(b) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(f) of title 37, United States Code, is amend-
ed by striking out ‘‘September 30, 1999’’ and inserting
in lieu thereof ‘‘September 30, 2000’’.
(c) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1999’’ and inserting in
lieu thereof ‘‘September 30, 2000’’.
(d) SPECIAL PAY
FOR ENLISTED MEMBERS AS-
SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section
308d(c) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1999’’ and inserting in lieu
thereof ‘‘September 30, 2000’’.
(e) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1999’’ and inserting in
lieu thereof ‘‘September 30, 2000’’.
(f) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS.—Section 308h(g) of title 37, United States
Code, is amended by striking out ‘‘September 30, 1999’’
and inserting in lieu thereof ‘‘September 30, 2000’’.
(g) PRIOR SERVICE ENLISTMENT BONUS.—Section
308i(f) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1999’’ and inserting in lieu
thereof ‘‘September 30, 2000’’.
186
(h) REPAYMENT OF EDUCATION LOANS FOR CER-
TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE-
LECTED RESERVE.—Section 16302(d) of title 10, United
States Code, is amended by striking out ‘‘October 1,
1999’’ and inserting in lieu thereof ‘‘October 1, 2000’’.
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUSES
AND SPECIAL PAY AUTHORITIES FOR NURSE
OFFICER CANDIDATES, REGISTERED NURSES,
AND NURSE ANESTHETISTS.
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States
Code, is amended by striking out ‘‘September 30, 1999’’
and inserting in lieu thereof ‘‘September 30, 2000’’.
(b) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is
amended by striking out ‘‘September 30, 1999’’ and in-
serting in lieu thereof ‘‘September 30, 2000’’.
(c) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of title 37, United States
Code, is amended by striking out ‘‘September 30, 1999’’
and inserting in lieu thereof ‘‘September 30, 2000’’.
187
SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES RELAT-
ING TO PAYMENT OF OTHER BONUSES AND
SPECIAL PAYS.
(a) AVIATION OFFICER RETENTION BONUS.—Sec-
tion 301b(a) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1999,’’ and inserting in
lieu thereof ‘‘September 30, 2000,’’.
(b) REENLISTMENT
BONUS
FOR
ACTIVE
MEM-
BERS.—Section 308(g) of title 37, United States Code, is
amended by striking out ‘‘September 30, 1999’’ and in-
serting in lieu thereof ‘‘September 30, 2000’’.
(c) ENLISTMENT BONUSES
FOR MEMBERS WITH
CRITICAL SKILLS.—Sections 308a(c) and 308f(c) of title
37, United States Code, are each amended by striking out
‘‘September 30, 1999’’ and inserting in lieu thereof ‘‘Sep-
tember 30, 2000’’.
(d) SPECIAL PAY FOR NUCLEAR QUALIFIED OFFI-
CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section
312(e) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1999’’ and inserting in lieu
thereof ‘‘September 30, 2000’’.
(e) NUCLEAR CAREER ACCESSION BONUS.—Section
312b(c) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1999’’ and inserting in lieu
thereof ‘‘September 30, 2000’’.
188
(f) 
NUCLEAR
CAREER
ANNUAL
INCENTIVE
BONUS.—Section 312c(d) of title 37, United States Code,
is amended by striking out ‘‘October 1, 1999’’ and insert-
ing in lieu thereof ‘‘October 1, 2000’’.
SEC. 614. AVIATION CAREER INCENTIVE PAY AND AVIATION
OFFICER RETENTION BONUS.
(a) DEFINITION OF AVIATION SERVICE.—(1) Section
301a(a)(6) of title 37, United States Code, is amended—
(A) by redesignating subparagraphs (A), (B),
and (C) as subparagraphs (B), (C), and (D), respec-
tively; and
(B) by inserting before subparagraph (B) (as so
redesignated) the following new subparagraph:
‘‘(A) The term ‘aviation service’ means service
performed by an officer (except a flight surgeon or
other medical officer) while holding an aeronautical
rating or designation or while in training to receive
an aeronautical rating or designation.’’.
(2) Section 301b(j) of such title is amended by strik-
ing out paragraph (1) and inserting in lieu thereof the
following new paragraph:
‘‘(1) The term ‘aviation service’ means service
performed by an officer (except a flight surgeon or
other medical officer) while holding an aeronautical
189
rating or designation or while in training to receive
an aeronautical rating or designation.’’.
(b) AMOUNT OF INCENTIVE PAY.—Subsection (b) of
section 301a of such title is amended to read as follows:
‘‘(b)(1) A member who satisfies the requirements de-
scribed in subsection (a) is entitled to monthly incentive
pay as follows:
‘‘Years of aviation service (including
Monthly
flight training) as an officer:
rate
2 or less ..............................................................................................
$125
Over 2 ................................................................................................
$156
Over 3 ................................................................................................
$188
Over 4 ................................................................................................
$206
Over 6 ................................................................................................
$650
Over 14 ..............................................................................................
$840
Over 22 ..............................................................................................
$585
Over 23 ..............................................................................................
$495
Over 24 ..............................................................................................
$385
Over 25 ..............................................................................................
$250
‘‘(2) An officer in a pay grade above O–6 is entitled,
until the officer completes 25 years of aviation service, to
be paid at the rates set forth in the table in paragraph
(1), except that—
‘‘(A) an officer in pay grade O–7 may not be
paid at a rate greater than $200 a month; and
‘‘(B) an officer in pay grade O–8 or above may
not be paid at a rate greater than $206 a month.
‘‘(3) For a warrant officer with over 22, 23, 24, or
25 years of aviation service who is qualified under sub-
section (a), the rate prescribed in the table in paragraph
(1) for officers with over 14 years of aviation service shall
continue to apply to the warrant officer.’’.
190
(c) REFERENCES TO AVIATION SERVICE.—(1) Sec-
tion 301a of such title is further amended—
(A) in subsection (a)(4)—
(i) by striking out ‘‘22 years of the offi-
cer’s service as an officer’’ and inserting in lieu
thereof ‘‘22 years of aviation service of the offi-
cer’’; and
(ii) by striking out ‘‘25 years of service as
an officer (as computed under section 205 of
this title)’’ and inserting in lieu thereof ‘‘25
years of aviation service’’; and
(B) in subsection (d), by striking out ‘‘sub-
section (b)(1) or (2), as the case may be, for the
performance of that duty by a member of cor-
responding years of aviation or officer service, as ap-
propriate,’’ and inserting in lieu thereof ‘‘subsection
(b) for the performance of that duty by a member
with corresponding years of aviation service’’.
(2) Section 301b(b)(5) of such title is amended by
striking out ‘‘active duty’’ and inserting in lieu thereof
‘‘aviation service’’.
(d) CONFORMING AMENDMENT.—Section 615 of the
National Defense Authorization Act for Fiscal Year 1998
(Public Law 105–85; 111 Stat. 1787) is repealed.
191
SEC. 615. SPECIAL PAY FOR DIVING DUTY.
Section 304(a) of title 37, United States Code, is
amended—
(1) by inserting ‘‘or’’ at the end of paragraph
(1);
(2) in paragraph (2), by striking out ‘‘by fre-
quent and regular dives; and’’ and inserting in lieu
thereof a period; and
(3) by striking out paragraph (3).
SEC. 616. SELECTIVE REENLISTMENT BONUS ELIGIBILITY
FOR RESERVE MEMBERS PERFORMING AC-
TIVE GUARD AND RESERVE DUTY.
Section 308(a)(1)(D) of title 37, United States Code,
is amended to read as follows:
‘‘(D) reenlists or voluntarily extends the mem-
ber’s enlistment for a period of at least three years
in a regular component, or in a reserve component
if the member is performing active Guard and Re-
serve duty (as defined in section 101(d)(6) of title
10), of the service concerned;’’.
SEC. 617. REMOVAL OF TEN PERCENT RESTRICTION ON SE-
LECTIVE REENLISTMENT BONUSES.
Section 308(b) of title 37, United States Code, is
amended—
(1) by striking out ‘‘(1)’’ after ‘‘(b)’’; and
(2) by striking out paragraph (2).
192
SEC. 618. INCREASE IN MAXIMUM AMOUNT OF ARMY EN-
LISTMENT BONUS.
Section 308f(a) of title 37, United States Code, is
amended by striking out ‘‘$4,000’’ and inserting in lieu
thereof ‘‘$6,000’’.
SEC. 619. EQUITABLE TREATMENT OF RESERVES ELIGIBLE
FOR SPECIAL PAY FOR DUTY SUBJECT TO
HOSTILE FIRE OR IMMINENT DANGER.
Section 310(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) A member of a reserve component who is eligible
for special pay under this section for a month shall receive
the full amount authorized in subsection (a) for that
month regardless of the number of days during that
month on which the member satisfies the eligibility criteria
specified in such subsection.’’.
SEC. 620. HARDSHIP DUTY PAY.
(a) DUTY
FOR WHICH PAY AUTHORIZED.—Sub-
section (a) of section 305 of title 37, United States Code,
is amended by striking out ‘‘on duty at a location’’ and
all that follows and inserting in lieu thereof ‘‘performing
duty in the United States or outside the United States
193
that is designated by the Secretary of Defense as hardship
duty.’’.
(b) REPEAL OF EXCEPTION FOR MEMBERS RECEIV-
ING CAREER SEA PAY.—Subsection (c) of such section is
repealed.
(c) CONFORMING AMENDMENTS.—(1) Subsections
(b) and (d) of such section are amended by striking out
‘‘hardship duty location pay’’ and inserting in lieu thereof
‘‘hardship duty pay’’.
(2) Subsection (d) of such section is redesignated as
subsection (c).
(3) The heading for such section is amended by strik-
ing out ‘‘location’’.
(4) Section 907(d) of title 37, United States Code,
is amended by striking out ‘‘duty at a hardship duty loca-
tion’’ and inserting in lieu thereof ‘‘hardship duty’’.
(d) CLERICAL AMENDMENT.—The item relating to
section 305 in the table of sections at the beginning of
chapter 5 of such title is amended to read as follows:
‘‘305. Special pay: hardship duty pay.’’.
Subtitle C—Travel and
Transportation Allowances
SEC. 631. EXCEPTION TO MAXIMUM WEIGHT ALLOWANCE
FOR BAGGAGE AND HOUSEHOLD EFFECTS.
Section 406(b)(1)(D) of title 37, United States Code,
is amended in the second sentence by inserting before the
194
period the following: ‘‘, unless the additional weight allow-
ance in excess of such maximum is intended to permit the
shipping of consumables that cannot be reasonably ob-
tained at the new station of the member’’.
SEC. 632. TRAVEL AND TRANSPORTATION ALLOWANCES
FOR TRAVEL PERFORMED BY MEMBERS IN
CONNECTION WITH REST AND RECUPER-
ATIVE LEAVE FROM OVERSEAS STATIONS.
(a) PROVISION OF TRANSPORTATION.—Section 411c
of title 37, United States Code, is amended by striking
out subsection (b) and inserting in lieu thereof the follow-
ing new subsection:
‘‘(b) When the transportation authorized by sub-
section (a) is provided by the Secretary concerned, the
Secretary may use Government or commercial carriers.
The Secretary concerned may limit the amount of pay-
ments made to members under subsection (a).’’.
(b) CLERICAL AMENDMENTS.—(1) The heading of
such section is amended to read as follows:
195
‘‘§ 411c. Travel and transportation allowances: travel
performed in connection with rest and
recuperative leave from certain stations
in foreign countries’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 7 of such title is
amended to read as follows:
‘‘411c. Travel and transportation allowances: travel performed in connection
with rest and recuperative leave from certain stations in for-
eign countries.’’.
SEC. 633. STORAGE OF BAGGAGE OF CERTAIN DEPEND-
ENTS.
Section 430(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) At the option of the member, in lieu of the trans-
portation of baggage of a dependent child under para-
graph (1) from the dependent’s school in the continental
United States, the Secretary concerned may pay or reim-
burse the member for costs incurred to store the baggage
at or in the vicinity of the school during the dependent’s
annual trip between the school and the member’s duty sta-
tion. The amount of the payment or reimbursement may
not exceed the cost that the Government would incur to
transport the baggage.’’.
196
Subtitle D—Retired Pay, Survivor
Benefits, and Related Matters
SEC. 641. EFFECTIVE DATE OF FORMER SPOUSE SURVIVOR
BENEFIT COVERAGE.
(a) 
COORDINATION
OF
PROVISIONS.—Section
1448(b)(3)(C) of title 10, United States Code, is amended
by inserting after ‘‘the Secretary concerned’’ in the second
sentence the following: ‘‘, except that, in the case of an
election made by a person described in section
1450(f)(3)(B) of this title, such an election is effective on
the first day of the first month which begins after the date
of the court order or filing involved (in the same manner
as provided under section 1450(f)(3)(D) of this title)’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to elections under section
1448(b)(3) of title 10, United States Code, that are re-
ceived by the Secretary concerned on or after the date of
the enactment of this Act.
SEC. 642. REVISION TO COMPUTATION OF RETIRED PAY
FOR ENLISTED MEMBERS WHO ARE RE-
DUCED IN GRADE BEFORE RETIREMENT.
(a) PRE-SEPTEMBER 8, 1980 MEMBERS.—Section
1406(i) of title 10, United States Code, is amended—
(1) by redesignating paragraph (2) as para-
graph (3); and
197
(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
198
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-
199
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,’’.
200
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
201
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
202
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
203
(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
204
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—
205
(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)’’.
206
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
207
(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.
208
(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.
209
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
210
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
211
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.’’.
212
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).
213
‘‘(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
214
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;
215
(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.
216
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
217
(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
218
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.
219
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.
220
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
221
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-
222
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
223
‘‘(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
224
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
225
individual were an employee enrolled in the same health
benefits plan and level of benefits.
‘‘(i) EFFECT OF CANCELLATION.—The cancellation
by a covered beneficiary of coverage under the Federal
Employee Health Benefits program shall be irrevocable
during the term of the demonstration project.
‘‘(j) REPORT REQUIREMENTS.—(1) The Secretary of
Defense and the Director of the Office of Personnel Man-
agement shall jointly submit to Congress a report contain-
ing the information described in paragraph (2)—
‘‘(A) not later than the date that is 15 months
after the date that the Secretary begins to imple-
ment the demonstration project; and
‘‘(B) not later than the date that is 39 months
after the date that the Secretary begins to imple-
ment the demonstration project.
‘‘(2) The reports required by paragraph (1) shall in-
clude—
‘‘(A) information on the number of eligible cov-
ered beneficiaries who opt to participate in the dem-
onstration project;
‘‘(B) an analysis of the percentage of eligible
covered beneficiaries who participate in the dem-
onstration project as compared to usage rates for
similarly situated Federal retirees;
226
‘‘(C) information on eligible covered bene-
ficiaries who opt to participate in the demonstration
project who did not have Medicare Part B coverage
before opting to participate in the project;
‘‘(D) an analysis of the enrollment rates and
cost of health services provided to eligible covered
beneficiaries who opt to participate in the dem-
onstration project as compared with other enrollees
in the Federal Employees Health Benefits Program
under title 5, United States Code;
‘‘(E) an analysis of how the demonstration
project affects the accessibility of health care in mili-
tary medical treatment facilities, and a description
of any unintended effects on the treatment priorities
in those facilities in the demonstration area;
‘‘(F) an analysis of any problems experienced
by the Department of Defense in managing the dem-
onstration project;
‘‘(G) a description of the effects of the dem-
onstration project on medical readiness and training
at military medical treatment facilities located in the
demonstration area, and a description of the prob-
able effects that making the project permanent
would have on medical readiness and training;
227
‘‘(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
228
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:
229
‘‘(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
230
(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:
231
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-
232
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
233
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—
234
(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
235
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
236
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.
237
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
238
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).
239
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.
240
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)
241
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.
242
(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
243
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
244
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.
245
(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-
246
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
247
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.
248
‘‘(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
249
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
250
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.
251
‘‘(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
252
‘‘(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,
253
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—
254
(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:
255
‘‘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.
256
‘‘(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
257
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
258
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).
259
‘‘(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
260
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.
261
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.
262
(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-
263
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.
264
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
265
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:
266
‘‘§ 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.
267
‘‘(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.
268
‘‘(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-
269
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.’’.
270
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.’’.
271
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-
272
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—
273
‘‘(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.
274
‘‘(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
275
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
276
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:
277
‘‘(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
278
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
279
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
280
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-
281
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
282
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-
284
(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.
285
‘‘(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:
286
‘‘§ 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-
287
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.’’.
288
(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-
289
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-