H. R. 1530—68
by striking out ‘‘September 30, 1995’’ and inserting in lieu thereof
‘‘September 30, 1996’’.
SEC. 314. MODIFICATION OF NOTIFICATION REQUIREMENT REGARD-
ING USE OF CORE LOGISTICS FUNCTIONS WAIVER.
Section 2464(b) of title 10, United States Code, is amended
by striking out paragraphs (3) and (4) and inserting in lieu thereof
the following new paragraph:
‘‘(3) A waiver under paragraph (2) may not take effect until
the end of the 30-day period beginning on the date on which
the Secretary submits a report on the waiver to the Committee
on Armed Services and the Committee on Appropriations of the
Senate and the Committee on National Security and the Committee
on Appropriations of the House of Representatives.’’.
Subtitle C—Environmental Provisions
SEC. 321. REVISION OF REQUIREMENTS FOR AGREEMENTS FOR SERV-
ICES UNDER ENVIRONMENTAL RESTORATION PROGRAM.
(a) REQUIREMENTS.—(1) Section 2701(d) of title 10, United
States Code, is amended to read as follows:
‘‘(d) SERVICES OF OTHER AGENCIES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary
may enter into agreements on a reimbursable or other basis
with any other Federal agency, or with any State or local
government agency, to obtain the services of the agency to
assist the Secretary in carrying out any of the Secretary’s
responsibilities under this section. Services which may be
obtained under this subsection include the identification, inves-
tigation, and cleanup of any off-site contamination resulting
from the release of a hazardous substance or waste at a facility
under the Secretary’s jurisdiction.
‘‘(2) LIMITATION
ON
REIMBURSABLE
AGREEMENTS.—An
agreement with an agency under paragraph (1) may not provide
for reimbursement of the agency for regulatory enforcement
activities.’’.
(2)(A) Except as provided in subparagraph (B), the total amount
of funds available for reimbursements under agreements entered
into under section 2710(d) of title 10, United States Code, as amend-
ed by paragraph (1), in fiscal year 1996 may not exceed $10,000,000.
(B) The Secretary of Defense may pay in fiscal year 1996
an amount for reimbursements under agreements referred to in
subparagraph (A) in excess of the amount specified in that subpara-
graph for that fiscal year if—
(i) the Secretary certifies to Congress that the payment
of the amount under this subparagraph is essential for the
management of the Defense Environmental Restoration Pro-
gram under chapter 160 of title 10, United States Code; and
(ii) a period of 60 days has expired after the date on
which the certification is received by Congress.
(b) REPORT ON SERVICES OBTAINED.—The Secretary of Defense
shall include in the report submitted to Congress with respect
to fiscal year 1998 under section 2706(a) of title 10, United States
Code, information on the services, if any, obtained by the Secretary
during fiscal year 1996 pursuant to each agreement on a reimburs-
able basis entered into with a State or local government agency
H. R. 1530—69
under section 2701(d) of title 10, United States Code, as amended
by subsection (a). The information shall include a description of
the services obtained under each agreement and the amount of
the reimbursement provided for the services.
SEC. 322. ADDITION 
OF 
AMOUNTS 
CREDITABLE 
TO 
DEFENSE
ENVIRONMENTAL RESTORATION ACCOUNT.
Section 2703(e) of title 10, United States Code, is amended
to read as follows:
‘‘(e) AMOUNTS RECOVERED.—The following amounts shall be
credited to the transfer account:
‘‘(1) Amounts recovered under CERCLA for response actions
of the Secretary.
‘‘(2) Any other amounts recovered by the Secretary or the
Secretary of the military department concerned from a contrac-
tor, insurer, surety, or other person to reimburse the Depart-
ment of Defense for any expenditure for environmental response
activities.’’.
SEC. 323. USE OF DEFENSE ENVIRONMENTAL RESTORATION ACCOUNT.
(a) GOAL FOR CERTAIN DERA EXPENDITURES.—It shall be the
goal of the Secretary of Defense to limit, by the end of fiscal
year 1997, spending for administration, support, studies, and inves-
tigations associated with the Defense Environmental Restoration
Account to 20 percent of the total funding for that account.
(b) REPORT.—Not later than April 1, 1996, the Secretary shall
submit to Congress a report that contains specific, detailed informa-
tion on—
(1) the extent to which the Secretary has attained the
goal described in subsection (a) as of the date of the submission
of the report; and
(2) if the Secretary has not attained such goal by such
date, the actions the Secretary plans to take to attain the
goal.
SEC. 324. REVISION OF AUTHORITIES RELATING TO RESTORATION
ADVISORY BOARDS.
(a) REGULATIONS.—Paragraph (2) of subsection (d) of section
2705 of title 10, United States Code, is amended to read as follows:
‘‘(2)(A) The Secretary shall prescribe regulations regarding the
establishment, characteristics, composition, and funding of restora-
tion advisory boards pursuant to this subsection.
‘‘(B) The issuance of regulations under subparagraph (A) shall
not be a precondition to the establishment of restoration advisory
boards under this subsection.’’.
(b) FUNDING FOR ADMINISTRATIVE EXPENSES.—Paragraph (3)
of such subsection is amended to read as follows:
‘‘(3) The Secretary may authorize the commander of an installa-
tion (or, if there is no such commander, an appropriate official
of the Department of Defense designated by the Secretary) to pay
routine administrative expenses of a restoration advisory board
established for that installation. Such payments shall be made
from funds available under subsection (g).’’.
(c) TECHNICAL ASSISTANCE.—Such section is further amended
by striking out subsection (e) and inserting in lieu thereof the
following new subsection (e):
‘‘(e) TECHNICAL ASSISTANCE.—(1) The Secretary may, upon the
request of the technical review committee or restoration advisory
H. R. 1530—70
board for an installation, authorize the commander of the installa-
tion (or, if there is no such commander, an appropriate official
of the Department of Defense designated by the Secretary) to obtain
for the committee or advisory board, as the case may be, from
private sector sources technical assistance for interpreting scientific
and engineering issues with regard to the nature of environmental
hazards at the installation and the restoration activities conducted,
or proposed to be conducted, at the installation. The commander
of an installation (or, if there is no such commander, an appropriate
official of the Department of Defense designated by the Secretary)
shall use funds made available under subsection (g) for obtaining
assistance under this paragraph.
‘‘(2) The commander of an installation (or, if there is no such
commander, an appropriate official of the Department of Defense
designated by the Secretary) may obtain technical assistance under
paragraph (1) for a technical review committee or restoration
advisory board only if—
‘‘(A) the technical review committee or restoration advisory
board demonstrates that the Federal, State, and local agencies
responsible for overseeing environmental restoration at the
installation, and available Department of Defense personnel,
do not have the technical expertise necessary for achieving
the objective for which the technical assistance is to be obtained;
or
‘‘(B) the technical assistance—
‘‘(i) is likely to contribute to the efficiency, effectiveness,
or timeliness of environmental restoration activities at the
installation; and
‘‘(ii) is likely to contribute to community acceptance
of environmental restoration activities at the installation.’’.
(d) FUNDING.—(1) Such section is further amended by adding
at the end the following new subsection:
‘‘(g) FUNDING.—The Secretary shall, to the extent provided in
appropriations Acts, make funds available for administrative
expenses and technical assistance under this section using funds
in the following accounts:
‘‘(1) In the case of a military installation not approved
for closure pursuant to a base closure law, the Defense Environ-
mental Restoration Account established under section 2703(a)
of this title.
‘‘(2) In the case of an installation approved for closure
pursuant to such a law, the Department of Defense Base Clo-
sure Account 1990 established under section 2906(a) of the
Defense Base Closure and Realignment Act of 1990 (part A
of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note).’’.
(2)(A) Subject to subparagraph (B), the total amount of funds
made available under section 2705(g) of title 10, United States
Code, as added by paragraph (1), for fiscal year 1996 may not
exceed $6,000,000.
(B) Amounts may not be made available under subsection (g)
of such section 2705 after September 15, 1996, unless the Secretary
of Defense publishes proposed final or interim final regulations
required under subsection (d) of such section, as amended by sub-
section (a).
(e) DEFINITION.—Such section is further amended by adding
after subsection (g) (as added by subsection (d)) the following new
subsection:
H. R. 1530—71
‘‘(h) DEFINITION.—In this section, the term ‘base closure law’
means the following:
‘‘(1) Title II of the Defense Authorization Amendments
and Base Closure and Realignment Act (Public Law 100–526;
10 U.S.C. 2687 note).
‘‘(2) The Defense Base Closure and Realignment Act of
1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C.
2687 note).
‘‘(3) Section 2687 of this title.’’.
(f) REPORTS ON ACTIVITIES OF TECHNICAL REVIEW COMMITTEES
AND RESTORATION ADVISORY BOARDS.—Section 2706(a)(2) of title
10, United States Code, is amended by adding at the end the
following:
‘‘(J) A statement of the activities, if any, including expendi-
tures for administrative expenses and technical assistance
under section 2705 of this title, of the technical review commit-
tee or restoration advisory board established for the installation
under such section during the preceding fiscal year.’’.
SEC. 325. DISCHARGES FROM VESSELS OF THE ARMED FORCES.
(a) PURPOSES.—The purposes of this section are to—
(1) enhance the operational flexibility of vessels of the
Armed Forces domestically and internationally;
(2) stimulate the development of innovative vessel pollution
control technology; and
(3) advance the development by the United States Navy
of environmentally sound ships.
(b) UNIFORM
NATIONAL
DISCHARGE
STANDARDS
DEVELOP-
MENT.—Section 312 of the Federal Water Pollution Control Act
(33 U.S.C. 1322) is amended by adding at the end the following:
‘‘(n) UNIFORM NATIONAL DISCHARGE STANDARDS FOR VESSELS
OF THE ARMED FORCES.—
‘‘(1) APPLICABILITY.—This subsection shall apply to vessels
of the Armed Forces and discharges, other than sewage, inciden-
tal to the normal operation of a vessel of the Armed Forces,
unless the Secretary of Defense finds that compliance with
this subsection would not be in the national security interests
of the United States.
‘‘(2) DETERMINATION OF DISCHARGES REQUIRED TO BE CON-
TROLLED BY MARINE POLLUTION CONTROL DEVICES.—
‘‘(A) IN
GENERAL.—The Administrator and the Sec-
retary of Defense, after consultation with the Secretary
of the department in which the Coast Guard is operating,
the Secretary of Commerce, and interested States, shall
jointly determine the discharges incidental to the normal
operation of a vessel of the Armed Forces for which it
is reasonable and practicable to require use of a marine
pollution control device to mitigate adverse impacts on
the marine environment. Notwithstanding subsection (a)(1)
of section 553 of title 5, United States Code, the Adminis-
trator and the Secretary of Defense shall promulgate the
determinations in accordance with such section. The Sec-
retary of Defense shall require the use of a marine pollution
control device on board a vessel of the Armed Forces in
any case in which it is determined that the use of such
a device is reasonable and practicable.
H. R. 1530—72
‘‘(B) CONSIDERATIONS.—In making a determination
under subparagraph (A), the Administrator and the Sec-
retary of Defense shall take into consideration—
‘‘(i) the nature of the discharge;
‘‘(ii) the environmental effects of the discharge;
‘‘(iii) the practicability of using the marine pollu-
tion control device;
‘‘(iv) the effect that installation or use of the
marine pollution control device would have on the oper-
ation or operational capability of the vessel;
‘‘(v) applicable United States law;
‘‘(vi) applicable international standards; and
‘‘(vii) the economic costs of the installation and
use of the marine pollution control device.
‘‘(3) PERFORMANCE STANDARDS FOR MARINE POLLUTION CON-
TROL DEVICES.—
‘‘(A) IN
GENERAL.—For each discharge for which a
marine pollution control device is determined to be required
under paragraph (2), the Administrator and the Secretary
of Defense, in consultation with the Secretary of the depart-
ment in which the Coast Guard is operating, the Secretary
of State, the Secretary of Commerce, other interested Fed-
eral agencies, and interested States, shall jointly promul-
gate Federal standards of performance for each marine
pollution control device required with respect to the dis-
charge. Notwithstanding subsection (a)(1) of section 553
of title 5, United States Code, the Administrator and the
Secretary of Defense shall promulgate the standards in
accordance with such section.
‘‘(B) CONSIDERATIONS.—In promulgating standards
under this paragraph, the Administrator and the Secretary
of Defense shall take into consideration the matters set
forth in paragraph (2)(B).
‘‘(C) CLASSES, TYPES, AND
SIZES
OF
VESSELS.—The
standards promulgated under this paragraph may—
‘‘(i) distinguish among classes, types, and sizes
of vessels;
‘‘(ii) distinguish between new and existing vessels;
and
‘‘(iii) provide for a waiver of the applicability of
the standards as necessary or appropriate to a particu-
lar class, type, age, or size of vessel.
‘‘(4) REGULATIONS FOR USE OF MARINE POLLUTION CONTROL
DEVICES.—The Secretary of Defense, after consultation with
the Administrator and the Secretary of the department in which
the Coast Guard is operating, shall promulgate such regulations
governing the design, construction, installation, and use of
marine pollution control devices on board vessels of the Armed
Forces as are necessary to achieve the standards promulgated
under paragraph (3).
‘‘(5) DEADLINES; EFFECTIVE DATE.—
‘‘(A) DETERMINATIONS.—The Administrator and the
Secretary of Defense shall—
‘‘(i) make the initial determinations under para-
graph (2) not later than 2 years after the date of
the enactment of this subsection; and
‘‘(ii) every 5 years—
H. R. 1530—73
‘‘(I) review the determinations; and
‘‘(II) if necessary, revise the determinations
based on significant new information.
‘‘(B) STANDARDS.—The Administrator and the Sec-
retary of Defense shall—
‘‘(i) promulgate standards of performance for a
marine pollution control device under paragraph (3)
not later than 2 years after the date of a determination
under paragraph (2) that the marine pollution control
device is required; and
‘‘(ii) every 5 years—
‘‘(I) review the standards; and
‘‘(II) if necessary, revise the standards, consist-
ent with paragraph (3)(B) and based on significant
new information.
‘‘(C) REGULATIONS.—The Secretary of Defense shall
promulgate regulations with respect to a marine pollution
control device under paragraph (4) as soon as practicable
after the Administrator and the Secretary of Defense
promulgate standards with respect to the device under
paragraph (3), but not later than 1 year after the Adminis-
trator and the Secretary of Defense promulgate the stand-
ards. The regulations promulgated by the Secretary of
Defense under paragraph (4) shall become effective upon
promulgation unless another effective date is specified in
the regulations.
‘‘(D) PETITION FOR REVIEW.—The Governor of any State
may submit a petition requesting that the Secretary of
Defense and the Administrator review a determination
under paragraph (2) or a standard under paragraph (3),
if there is significant new information, not considered pre-
viously, that could reasonably result in a change to the
particular determination or standard after consideration
of the matters set forth in paragraph (2)(B). The petition
shall be accompanied by the scientific and technical
information on which the petition is based. The Adminis-
trator and the Secretary of Defense shall grant or deny
the petition not later than 2 years after the date of receipt
of the petition.
‘‘(6) EFFECT ON OTHER LAWS.—
‘‘(A) PROHIBITION ON REGULATION BY STATES OR POLITI-
CAL SUBDIVISIONS OF STATES.—Beginning on the effective
date of—
‘‘(i) a determination under paragraph (2) that it
is not reasonable and practicable to require use of
a marine pollution control device regarding a particular
discharge incidental to the normal operation of a vessel
of the Armed Forces; or
‘‘(ii) regulations promulgated by the Secretary of
Defense under paragraph (4);
except as provided in paragraph (7), neither a State nor
a political subdivision of a State may adopt or enforce
any statute or regulation of the State or political subdivi-
sion with respect to the discharge or the design, construc-
tion, installation, or use of any marine pollution control
device required to control discharges from a vessel of the
Armed Forces.
H. R. 1530—74
‘‘(B) FEDERAL LAWS.—This subsection shall not affect
the application of section 311 to discharges incidental to
the normal operation of a vessel.
‘‘(7) ESTABLISHMENT OF STATE NO-DISCHARGE ZONES.—
‘‘(A) STATE PROHIBITION.—
‘‘(i) IN GENERAL.—After the effective date of—
‘‘(I) a determination under paragraph (2) that
it is not reasonable and practicable to require use
of a marine pollution control device regarding a
particular discharge incidental to the normal oper-
ation of a vessel of the Armed Forces; or
‘‘(II) regulations promulgated by the Secretary
of Defense under paragraph (4);
if a State determines that the protection and enhance-
ment of the quality of some or all of the waters within
the State require greater environmental protection, the
State may prohibit 1 or more discharges incidental
to the normal operation of a vessel, whether treated
or not treated, into the waters. No prohibition shall
apply until the Administrator makes the determina-
tions described in subclauses (II) and (III) of subpara-
graph (B)(i).
‘‘(ii) DOCUMENTATION.—To the extent that a
prohibition under this paragraph would apply to ves-
sels of the Armed Forces and not to other types of
vessels, the State shall document the technical or
environmental basis for the distinction.
‘‘(B) PROHIBITION BY THE ADMINISTRATOR.—
‘‘(i) IN GENERAL.—Upon application of a State, the
Administrator shall by regulation prohibit the dis-
charge from a vessel of 1 or more discharges incidental
to the normal operation of a vessel, whether treated
or not treated, into the waters covered by the applica-
tion if the Administrator determines that—
‘‘(I) the protection and enhancement of the
quality of the specified waters within the State
require a prohibition of the discharge into the
waters;
‘‘(II) adequate facilities for the safe and sani-
tary removal of the discharge incidental to the
normal operation of a vessel are reasonably avail-
able for the waters to which the prohibition would
apply; and
‘‘(III) the prohibition will not have the effect
of discriminating against a vessel of the Armed
Forces by reason of the ownership or operation
by the Federal Government, or the military func-
tion, of the vessel.
‘‘(ii) APPROVAL
OR
DISAPPROVAL.—The Adminis-
trator shall approve or disapprove an application
submitted under clause (i) not later than 90 days after
the date on which the application is submitted to the
Administrator. Notwithstanding clause (i)(II), the
Administrator shall not disapprove an application for
the sole reason that there are not adequate facilities
to remove any discharge incidental to the normal oper-
ation of a vessel from vessels of the Armed Forces.
H. R. 1530—75
‘‘(C) APPLICABILITY
TO
FOREIGN
FLAGGED
VESSELS.—
A prohibition under this paragraph—
‘‘(i) shall not impose any design, construction, man-
ning, or equipment standard on a foreign flagged vessel
engaged in innocent passage unless the prohibition
implements a generally accepted international rule or
standard; and
‘‘(ii) that relates to the prevention, reduction, and
control of pollution shall not apply to a foreign flagged
vessel engaged in transit passage unless the prohibi-
tion implements an applicable international regulation
regarding the discharge of oil, oily waste, or any other
noxious substance into the waters.
‘‘(8) PROHIBITION
RELATING
TO
VESSELS
OF
THE
ARMED
FORCES.—After the effective date of the regulations promul-
gated by the Secretary of Defense under paragraph (4), it
shall be unlawful for any vessel of the Armed Forces subject
to the regulations to—
‘‘(A) operate in the navigable waters of the United
States or the waters of the contiguous zone, if the vessel
is not equipped with any required marine pollution control
device meeting standards established under this subsection;
or
‘‘(B) discharge overboard any discharge incidental to
the normal operation of a vessel in waters with respect
to which a prohibition on the discharge has been estab-
lished under paragraph (7).
‘‘(9) ENFORCEMENT.—This subsection shall be enforceable,
as provided in subsections (j) and (k), against any agency of
the United States responsible for vessels of the Armed Forces
notwithstanding any immunity asserted by the agency.’’.
(c) CONFORMING AMENDMENTS.—
(1) DEFINITIONS.—Section 312(a) of the Federal Water
Pollution Control Act (33 U.S.C. 1322(a)) is amended—
(A) in paragraph (8)—
(i) by striking ‘‘or’’; and
(ii) by inserting ‘‘or agency of the United States,’’
after ‘‘association,’’;
(B) in paragraph (11), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:
‘‘(12) ‘discharge incidental to the normal operation of a
vessel’—
‘‘(A) means a discharge, including—
‘‘(i) graywater, bilge water, cooling water, weather
deck runoff, ballast water, oil water separator effluent,
and any other pollutant discharge from the operation
of a marine propulsion system, shipboard maneuvering
system, crew habitability system, or installed major
equipment, such as an aircraft carrier elevator or a
catapult, or from a protective, preservative, or absorp-
tive application to the hull of the vessel; and
‘‘(ii) a discharge in connection with the testing,
maintenance, and repair of a system described in
clause (i) whenever the vessel is waterborne; and
‘‘(B) does not include—
H. R. 1530—76
‘‘(i) a discharge of rubbish, trash, garbage, or other
such material discharged overboard;
‘‘(ii) an air emission resulting from the operation
of a vessel propulsion system, motor driven equipment,
or incinerator; or
‘‘(iii) a discharge that is not covered by part 122.3
of title 40, Code of Federal Regulations (as in effect
on the date of the enactment of subsection (n));
‘‘(13) ‘marine pollution control device’ means any equipment
or management practice, for installation or use on board a
vessel of the Armed Forces, that is—
‘‘(A) designed to receive, retain, treat, control, or dis-
charge a discharge incidental to the normal operation of
a vessel; and
‘‘(B) determined by the Administrator and the Sec-
retary of Defense to be the most effective equipment or
management practice to reduce the environmental impacts
of the discharge consistent with the considerations set forth
in subsection (n)(2)(B); and
‘‘(14) ‘vessel of the Armed Forces’ means—
‘‘(A) any vessel owned or operated by the Department
of Defense, other than a time or voyage chartered vessel;
and
‘‘(B) any vessel owned or operated by the Department
of Transportation that is designated by the Secretary of
the department in which the Coast Guard is operating
as a vessel equivalent to a vessel described in subparagraph
(A).’’.
(2) ENFORCEMENT.—The first sentence of section 312(j) of
the Federal Water Pollution Control Act (33 U.S.C. 1322(j))
is amended—
(A) by striking ‘‘of this section or’’ and inserting a
comma; and
(B) by striking ‘‘of this section shall’’ and inserting
‘‘, or subsection (n)(8) shall’’.
(3) OTHER DEFINITIONS.—Subparagraph (A) of the second
sentence of section 502(6) of the Federal Water Pollution Con-
trol Act (33 U.S.C. 1362(6)) is amended by striking ‘‘ ‘sewage
from vessels’ ’’ and inserting ‘‘ ‘sewage from vessels or a dis-
charge incidental to the normal operation of a vessel of the
Armed Forces’ ’’.
(d) COOPERATION IN STANDARDS DEVELOPMENT.—The Adminis-
trator of the Environmental Protection Agency and the Secretary
of Defense may, by mutual agreement, with or without reimburse-
ment, provide for the use of information, reports, personnel, or
other resources of the Environmental Protection Agency or the
Department of Defense to carry out section 312(n) of the Federal
Water Pollution Control Act (as added by subsection (b)), including
the use of the resources—
(1) to determine—
(A) the nature and environmental effect of discharges
incidental to the normal operation of a vessel of the Armed
Forces;
(B) the practicability of using marine pollution control
devices on vessels of the Armed Forces; and
(C) the effect that installation or use of marine pollu-
tion control devices on vessels of the Armed Forces would
H. R. 1530—77
have on the operation or operational capability of the ves-
sels; and
(2) to establish performance standards for marine pollution
control devices on vessels of the Armed Forces.
Subtitle D—Commissaries and
Nonappropriated Fund Instrumentalities
SEC. 331. OPERATION OF COMMISSARY SYSTEM.
(a) COOPERATION WITH OTHER ENTITIES.—Section 2482 of title
10, United States Code, is amended—
(1) in the section heading, by striking out ‘‘private’’;
(2) by inserting ‘‘(a) PRIVATE OPERATION.—’’ before ‘‘Private
persons’’; and
(3) by adding at the end the following new subsection:
‘‘(b) CONTRACTS WITH OTHER AGENCIES AND INSTRUMENTAL-
ITIES.—(1) The Defense Commissary Agency, and any other agency
of the Department of Defense that supports the operation of the
commissary system, may enter into a contract or other agreement
with another department, agency, or instrumentality of the Depart-
ment of Defense or another Federal agency to provide services
beneficial to the efficient management and operation of the com-
missary system.
‘‘(2) A commissary store operated by a nonappropriated fund
instrumentality of the Department of Defense shall be operated
in accordance with section 2484 of this title. Subject to such section,
the Secretary of Defense may authorize a transfer of goods, supplies,
and facilities of, and funds appropriated for, the Defense Com-
missary Agency or any other agency of the Department of Defense
that supports the operation of the commissary system to a
nonappropriated fund instrumentality for the operation of a com-
missary store.’’.
(b) CLERICAL AMENDMENT.—The item relating to such section
in the table of sections at the beginning of chapter 147 of such
title is amended to read as follows:
‘‘2482. Commissary stores: operation.’’.
SEC. 332. LIMITED 
RELEASE 
OF 
COMMISSARY 
STORES 
SALES
INFORMATION TO MANUFACTURERS, DISTRIBUTORS,
AND OTHER VENDORS DOING BUSINESS WITH DEFENSE
COMMISSARY AGENCY.
Section 2487(b) of title 10, United States Code, is amended
in the second sentence by inserting before the period the following:
‘‘unless the agreement is between the Defense Commissary Agency
and a manufacturer, distributor, or other vendor doing business
with the Agency and is restricted to information directly related
to merchandise provided by that manufacturer, distributor, or
vendor’’.
SEC. 333. ECONOMICAL DISTRIBUTION OF DISTILLED SPIRITS BY
NONAPPROPRIATED FUND INSTRUMENTALITIES.
(a) ECONOMICAL DISTRIBUTION.—Subsection (a)(1) of section
2488 of title 10, United States Code, is amended by inserting
after ‘‘most competitive source’’ the following: ‘‘and distributed in
the most economical manner’’.
H. R. 1530—78
(b) DETERMINATION
OF
MOST
ECONOMICAL
DISTRIBUTION
METHOD.—Such section is further amended—
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new sub-
section:
‘‘(c)(1) In the case of covered alcoholic beverage purchases of
distilled spirits, to determine whether a nonappropriated fund
instrumentality of the Department of Defense provides the most
economical method of distribution to package stores, the Secretary
of Defense shall consider all components of the distribution costs
incurred by the nonappropriated fund instrumentality, such as over-
head costs (including costs associated with management, logistics,
administration, depreciation, and utilities), the costs of carrying
inventory, and handling and distribution costs.
‘‘(2) If the use of a private distributor would subject covered
alcoholic beverage purchases of distilled spirits to direct or indirect
State taxation, a nonappropriated fund instrumentality shall be
considered to be the most economical method of distribution regard-
less of the results of the determination under paragraph (1).
‘‘(3) The Secretary shall use the agencies performing audit
functions on behalf of the armed forces and the Inspector General
of the Department of Defense to make determinations under this
subsection.’’.
SEC. 334. TRANSPORTATION BY COMMISSARIES AND EXCHANGES TO
OVERSEAS LOCATIONS.
(a) IN GENERAL.—Chapter 157 of title 10, United States Code,
is amended by adding at the end the following new section:
‘‘§ 2643. Commissary and exchange services: transportation
overseas
‘‘The Secretary of Defense shall authorize the officials respon-
sible for operation of commissaries and military exchanges to nego-
tiate directly with private carriers for the most cost-effective
transportation of commissary and exchange supplies by sea without
relying on the Military Sealift Command or the Military Traffic
Management Command. Section 2631 of this title, regarding the
preference for vessels of the United States or belonging to the
United States in the transportation of supplies by sea, shall apply
to the negotiation of transportation contracts under the authority
of this section.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following
new item:
‘‘2643. Commissary and exchange services: transportation overseas.’’.
SEC. 335. DEMONSTRATION PROJECT FOR UNIFORM FUNDING OF
MORALE, WELFARE, AND RECREATION ACTIVITIES AT CER-
TAIN MILITARY INSTALLATIONS.
(a) DEMONSTRATION PROJECT REQUIRED.—(1) The Secretary of
Defense shall conduct a demonstration project to evaluate the fea-
sibility of using only nonappropriated funds to support morale,
welfare, and recreation programs at military installations in order
to facilitate the procurement of property and services for those
programs and the management of employees used to carry out
those programs.
(2) Under the demonstration project—
H. R. 1530—79
(A) procurements of property and services for programs
referred to in paragraph (1) may be carried out in accordance
with laws and regulations applicable to procurements paid for
with nonappropriated funds; and
(B) appropriated funds available for such programs may
be expended in accordance with laws applicable to expenditures
of nonappropriated funds as if the appropriated funds were
nonappropriated funds.
(3) The Secretary shall prescribe regulations to carry out para-
graph (2). The regulations shall provide for financial management
and accounting of appropriated funds expended in accordance with
subparagraph (B) of such paragraph.
(b) COVERED MILITARY INSTALLATIONS.—The Secretary shall
select not less than three and not more than six military installa-
tions to participate in the demonstration project.
(c) PERIOD OF DEMONSTRATION PROJECT.—The demonstration
project shall terminate not later than September 30, 1998.
(d) EFFECT ON EMPLOYEES.—For the purpose of testing fiscal
accounting procedures, the Secretary may convert, for the duration
of the demonstration project, the status of an employee who carries
out a program referred to in subsection (a)(1) from the status
of an employee paid by appropriated funds to the status of a
nonappropriated fund instrumentality employee, except that such
conversion may occur only—
(1) if the employee whose status is to be converted—
(A) is fully informed of the effects of such conversion
on the terms and conditions of the employment of that
employee for purposes of title 5, United States Code, and
on the benefits provided to that employee under such title;
and
(B) consents to such conversion; or
(2) in a manner which does not affect such terms and
conditions of employment or such benefits.
(e) REPORTS.—(1) Not later than six months after the date
of the enactment of this Act, the Secretary shall submit to Congress
an interim report on the implementation of this section.
(2) Not later than December 31, 1998, the Secretary shall
submit to Congress a final report on the results of the demonstration
project. The report shall include a comparison of—
(A) the cost incurred under the demonstration project in
using employees paid by appropriated funds together with
nonappropriated fund instrumentality employees to carry out
the programs referred to in subsection (a)(1); and
(B) an estimate of the cost that would have been incurred
if only nonappropriated fund instrumentality employees had
been used to carry out such programs.
SEC. 336. OPERATION OF COMBINED EXCHANGE AND COMMISSARY
STORES.
(a) IN GENERAL.—(1) Chapter 147 of title 10, United States
Code, is amended by adding at the end the following new section:
‘‘§ 2490a. Combined exchange and commissary stores
‘‘(a) AUTHORITY.—The Secretary of Defense may authorize a
nonappropriated fund instrumentality to operate a military
exchange and a commissary store as a combined exchange and
commissary store on a military installation.
H. R. 1530—80
‘‘(b) LIMITATIONS.—(1) Not more than ten combined exchange
and commissary stores may be operated pursuant to this section.
‘‘(2) The Secretary may select a military installation for the
operation of a combined exchange and commissary store under
this section only if—
‘‘(A) the installation is to be closed, or has been or is
to be realigned, under a base closure law; or
‘‘(B) a military exchange and a commissary store are oper-
ated at the installation by separate entities at the time of,
or immediately before, such selection and it is not economically
feasible to continue that separate operation.
‘‘(c) OPERATION AT CARSWELL FIELD.—Combined exchange and
commissary stores operated under this section shall include the
combined exchange and commissary store that is operated at the
Naval Air Station Fort Worth, Joint Reserve Center, Carswell Field,
Texas, under the authority provided in section 375 of the National
Defense Authorization Act for Fiscal Year 1995 (Public Law 103–
337; 108 Stat. 2736).
‘‘(d) ADJUSTMENTS AND SURCHARGES.—Adjustments to, and sur-
charges on, the sales price of a grocery food item sold in a combined
exchange and commissary store under this section shall be provided
for in accordance with the same laws that govern such adjustments
and surcharges for items sold in a commissary store of the Defense
Commissary Agency.
‘‘(e) USE OF APPROPRIATED FUNDS.—(1) If a nonappropriated
fund instrumentality incurs a loss in operating a combined exchange
and commissary store at a military installation under this section
as a result of the requirement set forth in subsection (d), the
Secretary may authorize a transfer of funds available for the
Defense 
Commissary 
Agency 
to 
the 
nonappropriated 
fund
instrumentality to offset the loss.
‘‘(2) The total amount of appropriated funds transferred during
a fiscal year to support the operation of a combined exchange
and commissary store at a military installation under this section
may not exceed an amount that is equal to 25 percent of the
amount of appropriated funds that was provided for the operation
of the commissary store of the Defense Commissary Agency on
that installation during the last full fiscal year of operation of
that commissary store.
‘‘(f) DEFINITIONS.—In this section:
‘‘(1) The term ‘nonappropriated fund instrumentality’
means the Army and Air Force Exchange Service, Navy
Exchange Service Command, Marine Corps exchanges, or any
other instrumentality of the United States under the jurisdic-
tion of the Armed Forces which is conducted for the comfort,
pleasure, contentment, or physical or mental improvement of
members of the Armed Forces.
‘‘(2) The term ‘base closure law’ has the meaning given
such term by section 2667(g) of this title.’’.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:
‘‘2490a. Combined exchange and commissary stores.’’.
(b) CONFORMING AMENDMENT.—Section 375 of the National
Defense Authorization Act for Fiscal Year 1995 (Public Law 103–
337; 108 Stat. 2736) is amended by striking out ‘‘, until December
31, 1995,’’.
H. R. 1530—81
SEC. 337. DEFERRED PAYMENT PROGRAMS OF MILITARY EXCHANGES.
(a) USE OF COMMERCIAL BANKING INSTITUTION.—(1) As soon
as practicable after the date of the enactment of this Act, the
Secretary of Defense shall seek to enter into an agreement with
a commercial banking institution under which the institution agrees
to finance and operate the deferred payment program of the Army
and Air Force Exchange Service and the deferred payment program
of the Navy Exchange Service Command. The Secretary shall use
competitive procedures to enter into an agreement under this para-
graph.
(2) In order to facilitate the transition of the operation of
the programs referred to in paragraph (1) to commercial operation
under an agreement described in that paragraph, the Secretary
may initially limit the scope of any such agreement so as to apply
to only one of the programs.
(b) REPORT.—Not later than December 31, 1995, the Secretary
shall submit to Congress a report on the implementation of this
section. The report shall also include an analysis of the impact
of the deferred payment programs referred to in subsection (a)(1),
including the impact of the default and collection procedures under
such programs, on members of the Armed Forces and their families.
SEC. 338. AVAILABILITY OF FUNDS TO OFFSET EXPENSES INCURRED
BY ARMY AND AIR FORCE EXCHANGE SERVICE ON
ACCOUNT OF TROOP REDUCTIONS IN EUROPE.
Of funds authorized to be appropriated under section 301(5),
not less than $70,000,000 shall be available to the Secretary of
Defense for transfer to the Army and Air Force Exchange Service
to offset expenses incurred by the Army and Air Force Exchange
Service on account of reductions in the number of members of
the United States Armed Forces assigned to permanent duty ashore
in Europe.
SEC. 339. STUDY REGARDING IMPROVING EFFICIENCIES IN OPER-
ATION OF MILITARY EXCHANGES AND OTHER MORALE,
WELFARE, 
AND 
RECREATION 
ACTIVITIES 
AND 
COM-
MISSARY STORES.
(a) STUDY REQUIRED.—The Secretary of Defense shall conduct
a study regarding the manner in which greater efficiencies can
be achieved in the operation of—
(1) military exchanges;
(2) other instrumentalities of the United States under the
jurisdiction of the Armed Forces which are conducted for the
comfort, pleasure, contentment, or physical or mental improve-
ment of members of the Armed Forces; and
(3) commissary stores.
(b) REPORT
OF STUDY.—Not later than March 1, 1996, the
Secretary of Defense shall submit to Congress a report describing
the results of the study and containing such recommendations
as the Secretary considers appropriate to implement options identi-
fied in the study to achieve the greater efficiencies referred to
in subsection (a).
SEC. 340. REPEAL OF REQUIREMENT TO CONVERT SHIPS’ STORES TO
NONAPPROPRIATED FUND INSTRUMENTALITIES.
(a) REPEAL.—Section 371 of the National Defense Authorization
Act for Fiscal Year 1994 (Public Law 103–160; 10 U.S.C. 7604
note) is amended—
H. R. 1530—82
(1) by striking out subsections (a) and (b); and
(2) by redesignating subsections (c) and (d) as subsections
(a) and (b), respectively.
(b) INSPECTOR GENERAL REVIEW.—Not later than April 1, 1996,
the Inspector General of the Department of Defense shall submit
to Congress a report that reviews the report on the costs and
benefits of converting to operation of Navy ships’ stores by
nonappropriated fund instrumentalities that the Navy Audit Agency
prepared in connection with the postponement of the deadline for
the conversion provided for in section 374(a) of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108
Stat. 2736).
SEC. 341. DISPOSITION OF EXCESS MORALE, WELFARE, AND RECRE-
ATION FUNDS.
Section 2219 of title 10, United States Code, is amended—
(1) in the first sentence, by striking out ‘‘a military depart-
ment’’ and inserting in lieu thereof ‘‘an armed force’’;
(2) in the second sentence—
(A) by striking out ‘‘, department-wide’’; and
(B) by striking out ‘‘of the military department’’ and
inserting in lieu thereof ‘‘for that armed force’’; and
(3) by adding at the end the following: ‘‘This section does
not apply to the Coast Guard.’’.
SEC. 342. CLARIFICATION OF ENTITLEMENT TO USE OF MORALE, WEL-
FARE, AND RECREATION FACILITIES BY MEMBERS OF
RESERVE COMPONENTS AND DEPENDENTS.
(a) IN GENERAL.—Section 1065 of title 10, United States Code,
is amended to read as follows:
‘‘§ 1065. Morale, welfare, and recreation retail facilities: use
by members of reserve components and depend-
ents
‘‘(a) MEMBERS OF THE SELECTED RESERVE.—A member of the
Selected Reserve in good standing (as determined by the Secretary
concerned) shall be permitted to use MWR retail facilities on the
same basis as members on active duty.
‘‘(b) MEMBERS OF READY RESERVE NOT IN SELECTED RESERVE.—
Subject to such regulations as the Secretary of Defense may pre-
scribe, a member of the Ready Reserve (other than members of
the Selected Reserve) may be permitted to use MWR retail facilities
on the same basis as members serving on active duty.
‘‘(c) RESERVE RETIREES UNDER AGE 60.—A member or former
member of a reserve component under 60 years of age who, but
for age, would be eligible for retired pay under chapter 1223 of
this title shall be permitted to use MWR retail facilities on the
same basis as members of the armed forces entitled to retired
pay under any other provision of law.
‘‘(d) DEPENDENTS.—(1) Dependents of a member who is per-
mitted under subsection (a) or (b) to use MWR retail facilities
shall be permitted to use such facilities on the same basis as
dependents of members on active duty.
‘‘(2) Dependents of a member who is permitted under subsection
(c) to use MWR retail facilities shall be permitted to use such
facilities on the same basis as dependents of members of the armed
forces entitled to retired pay under any other provision of law.
H. R. 1530—83
‘‘(e) MWR RETAIL FACILITY DEFINED.—In this section, the term
‘MWR retail facilities’ means exchange stores and other revenue-
generating facilities operated by nonappropriated fund activities
of the Department of Defense for the morale, welfare, and recreation
of members of the armed forces.’’.
(b) CLERICAL AMENDMENT.—The item relating to such section
in the table of sections at the beginning of chapter 54 of such
title is amended to read as follows:
‘‘1065. Morale, welfare, and recreation retail facilities: use by members of reserve
components and dependents.’’.
Subtitle E—Performance of Functions by
Private-Sector Sources
SEC. 351. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICA-
TION SERVICES.
(a) REQUIREMENT FOR COMPETITIVE PROCUREMENT.—Except as
provided in subsection (b), the Secretary of Defense shall, during
fiscal year 1996 and consistent with the requirements of title 44,
United States Code, competitively procure printing and duplication
services from private-sector sources for the performance of at least
70 percent of the total printing and duplication requirements of
the Defense Printing Service.
(b) EXCEPTION FOR CLASSIFIED INFORMATION.—The requirement
of subsection (a) shall not apply to the procurement of services
for printing and duplicating classified documents and information.
SEC. 352. DIRECT VENDOR DELIVERY SYSTEM FOR CONSUMABLE
INVENTORY ITEMS OF DEPARTMENT OF DEFENSE.
(a) IMPLEMENTATION OF DIRECT VENDOR DELIVERY SYSTEM.—
Not later than September 30, 1997, the Secretary of Defense shall,
to the maximum extent practicable, implement a system under
which consumable inventory items referred to in subsection (b)
are delivered to military installations throughout the United States
directly by the vendors of those items. The purpose for implementing
the system is to reduce the expense and necessity of maintaining
extensive warehouses for those items within the Department of
Defense.
(b) COVERED ITEMS.—The items referred to in subsection (a)
are the following:
(1) Food and clothing.
(2) Medical and pharmaceutical supplies.
(3) Automotive, electrical, fuel, and construction supplies.
(4) Other consumable inventory items the Secretary consid-
ers appropriate.
SEC. 353. PAYROLL, FINANCE, AND ACCOUNTING FUNCTIONS OF THE
DEPARTMENT OF DEFENSE.
(a) PLAN FOR PRIVATE OPERATION OF CERTAIN FUNCTIONS.—
(1) Not later than March 1, 1996, the Secretary of Defense shall
submit to Congress a plan for the performance by private-sector
sources of payroll functions for civilian employees of the Department
of Defense other than employees paid from nonappropriated funds.
(2)(A) The Secretary shall implement the plan referred to in
paragraph (1) if the Secretary determines that the cost of perform-
ance by private-sector sources of the functions referred to in that
H. R. 1530—84
paragraph does not exceed the cost of performance of those functions
by employees of the Federal Government.
(B) In computing the total cost of performance of such functions
by employees of the Federal Government, the Secretary shall
include the following:
(i) Managerial and administrative costs.
(ii) Personnel costs, including the cost of providing retire-
ment benefits for such personnel.
(iii) Costs associated with the provision of facilities and
other support by Federal agencies.
(C) The Defense Contract Audit Agency shall verify the costs
computed for the Secretary under this paragraph by others.
(3) Subject to paragraph (2), the Secretary shall implement
the plan not later than October 1, 1996.
(4) At the same time the Secretary submits the plan required
by paragraph (1), the Secretary shall submit to Congress a report
on other accounting and finance functions of the Department that
are appropriate for performance by private-sector sources.
(b) PILOT PROGRAM FOR PRIVATE OPERATION OF NAFI FUNC-
TIONS.—(1) The Secretary shall carry out a pilot program to test
the performance by private-sector sources of payroll and other
accounting 
and 
finance 
functions 
of 
nonappropriated 
fund
instrumentalities and to evaluate the extent to which cost savings
and efficiencies would result from the performance of such functions
by those sources.
(2) The payroll and other accounting and finance functions
designated by the Secretary for performance by private-sector
sources under the pilot program shall include at least one major
payroll, accounting, or finance function.
(3) To carry out the pilot program, the Secretary shall enter
into discussions with private-sector sources for the purpose of devel-
oping a request for proposals to be issued for performance by
those sources of functions designated by the Secretary under para-
graph (2). The discussions shall be conducted on a schedule that
accommodates issuance of a request for proposals within 60 days
after the date of the enactment of this Act.
(4) A goal of the pilot program is to reduce by at least 25
percent the total costs incurred by the Department annually for
the performance of a function referred to in paragraph (2) through
the performance of that function by a private-sector source.
(5) Before conducting the pilot program, the Secretary shall
develop a plan for the program that addresses the following:
(A) The purposes of the program.
(B) The methodology, duration, and anticipated costs of
the program, including the cost of an arrangement pursuant
to which a private-sector source would receive an agreed-upon
payment plus an additional negotiated amount not to exceed
50 percent of the dollar savings achieved in excess of the
goal specified in paragraph (4).
(C) A specific citation to any provisions of law, rule, or
regulation that, if not waived, would prohibit the conduct of
the program or any part of the program.
(D) A mechanism to evaluate the program.
(E) A provision for all payroll, accounting, and finance
functions of nonappropriated fund instrumentalities of the
Department of Defense to be performed by private-sector
H. R. 1530—85
sources, if determined advisable on the basis of a final assess-
ment of the results of the program.
(6) The Secretary shall act through the Under Secretary of
Defense (Comptroller) in the performance of the Secretary’s respon-
sibilities under this subsection.
(c) LIMITATION
ON OPENING
OF NEW OPERATING LOCATIONS
FOR DEFENSE FINANCE AND ACCOUNTING SERVICE.—(1) Except as
provided in paragraph (2), the Secretary may not establish a new
operating location for the Defense Finance and Accounting Service
during fiscal year 1996.
(2) The Secretary may establish a new operating location for
the Defense Finance and Accounting Service if—
(A) for a new operating location that the Secretary planned
before the date of the enactment of this Act to establish on
or after that date, the Secretary reconsiders the need for
establishing that new operating location; and
(B) for each new operating location, including a new operat-
ing location referred to in subparagraph (A)—
(i) the Secretary submits to Congress, as part of the
report required by subsection (a)(4), an analysis of the
need for establishing the new operating location; and
(ii) a period of 30 days elapses after the Congress
receives the report.
(3) In this subsection, the term ‘‘new operating location’’ means
an operating location that is not in operation on the date of the
enactment of this Act, except that such term does not include
an operating location for which, as of such date—
(A) the Secretary has established a date for the commence-
ment of operations; and
(B) funds have been expended for the purpose of its
establishment.
SEC. 354. DEMONSTRATION PROGRAM TO IDENTIFY OVERPAYMENTS
MADE TO VENDORS.
(a) IN GENERAL.—The Secretary of Defense shall conduct a
demonstration program to evaluate the feasibility of using private
contractors to audit accounting and procurement records of the
Department of Defense in order to identify overpayments made
to vendors by the Department. The demonstration program shall
be conducted for the Defense Logistics Agency and include the
Defense Personnel Support Center.
(b) PROGRAM REQUIREMENTS.—(1) Under the demonstration
program, the Secretary shall, by contract, provide for one or more
persons to audit the accounting and procurement records of the
Defense Logistics Agency that relate to (at least) fiscal years 1993,
1994, and 1995. The Secretary may enter into more than one
contract under the program.
(2) A contract under the demonstration program shall require
the contractor to use data processing techniques that are generally
used in audits of private-sector records similar to the records
audited under the contract.
(c) AUDIT REQUIREMENTS.—In conducting an audit under the
demonstration program, a contractor shall compare Department
of Defense purchase agreements (and related documents) with
invoices submitted by vendors under the purchase agreements.
A purpose of the comparison is to identify, in the case of each
audited purchase agreement, the following:
H. R. 1530—86
(1) Any payments to the vendor for costs that are not
allowable under the terms of the purchase agreement or by
law.
(2) Any amounts not deducted from the total amount paid
to the vendor under the purchase agreement that should have
been deducted from that amount on account of goods and serv-
ices provided to the vendor by the Department.
(3) Duplicate payments.
(4) Unauthorized charges.
(5) Other discrepancies between the amount paid to the
vendor and the amount actually due the vendor under the
purchase agreement.
(d) BONUS PAYMENT.—To the extent provided for in a contract
under the demonstration program, the Secretary may pay the con-
tractor a bonus in addition to any other amount paid for perform-
ance of the contract. The amount of such bonus may not exceed
the amount that is equal to 25 percent of all amounts recovered
by the United States on the basis of information obtained as a
result of the audit performed under the contract. Any such bonus
shall be paid out of amounts made available pursuant to subsection
(e).
(e) AVAILABILITY OF FUNDS.—Of the amount authorized to be
appropriated pursuant to section 301(5), not more than $5,000,000
shall be available for the demonstration program.
SEC. 355. PILOT PROGRAM ON PRIVATE OPERATION OF DEFENSE
DEPENDENTS’ SCHOOLS.
(a) PILOT PROGRAM.—The Secretary of Defense may conduct
a pilot program to evaluate the feasibility of using private contrac-
tors to operate schools of the defense dependents’ education system
established under section 1402(a) of the Defense Dependents’ Edu-
cation Act of 1978 (20 U.S.C. 921(a)).
(b) SELECTION OF SCHOOL FOR PROGRAM.—If the Secretary con-
ducts the pilot program, the Secretary shall select one school of
the defense dependents’ education system for participation in the
program and provide for the operation of the school by a private
contractor for not less than one complete school year.
(c) REPORT.—Not later than 30 days after the end of the first
school year in which the pilot program is conducted, the Secretary
shall submit to Congress a report on the results of the program.
The report shall include the recommendation of the Secretary with
respect to the extent to which other schools of the defense depend-
ents’ education system should be operated by private contractors.
SEC. 356. PROGRAM FOR IMPROVED TRAVEL PROCESS FOR THE
DEPARTMENT OF DEFENSE.
(a) IN GENERAL.—(1) The Secretary of Defense shall conduct
a program to evaluate options to improve the Department of Defense
travel process. To carry out the program, the Secretary shall com-
pare the results of the tests conducted under subsection (b) to
determine which travel process tested under such subsection is
the better option to effectively manage travel of Department per-
sonnel.
(2) The program shall be conducted at not less than three
and not more than six military installations, except that an installa-
tion may be the subject of only one test conducted under the
program.
H. R. 1530—87
(3) The Secretary shall act through the Under Secretary of
Defense (Comptroller) in the performance of the Secretary’s respon-
sibilities under this section.
(b) CONDUCT
OF TESTS.—(1) The Secretary shall conduct a
test at an installation referred to in subsection (a)(2) under which
the Secretary—
(A) implements the changes proposed to be made with
respect to the Department of Defense travel process by the
task force on travel management that was established by the
Secretary in July 1994;
(B) manages and uniformly applies that travel process
(including the implemented changes) throughout the Depart-
ment; and
(C) provides opportunities for private-sector sources to pro-
vide travel reservation services and credit card services to
facilitate that travel process.
(2) The Secretary shall conduct a test at an installation referred
to in subsection (a)(2) under which the Secretary—
(A) enters into one or more contracts with a private-sector
source pursuant to which the private-sector source manages
the Department of Defense travel process (except for functions
referred to in subparagraph (B)), provides for responsive,
reasonably priced services as part of the travel process, and
uniformly applies the travel process throughout the Depart-
ment; and
(B) provides for the performance by employees of the
Department of only those travel functions, such as travel
authorization, that the Secretary considers to be necessary
to be performed by such employees.
(3) Each test required by this subsection shall begin not later
than 60 days after the date of the enactment of this Act and
end two years after the date on which it began. Each such test
shall also be conducted in accordance with the guidelines for travel
management issued for the Department by the Under Secretary
of Defense (Comptroller).
(c) EVALUATION CRITERIA.—The Secretary shall establish cri-
teria to evaluate the travel processes tested under subsection (b).
The criteria shall, at a minimum, include the extent to which
a travel process provides for the following:
(1) The coordination, at the time of a travel reservation,
of travel policy and cost estimates with the mission which
necessitates the travel.
(2) The use of fully integrated travel solutions envisioned
by the travel reengineering report of the Department of Defense
dated January 1995.
(3) The coordination of credit card data and travel reserva-
tion data with cost estimate data.
(4) The elimination of the need for multiple travel approvals
through the coordination of such data with proposed travel
plans.
(5) A responsive and flexible management information sys-
tem that enables the Under Secretary of Defense (Comptroller)
to monitor travel expenses throughout the year, accurately
plan travel budgets for future years, and assess, in the case
of travel of an employee on temporary duty, the relationship
between the cost of the travel and the value of the travel
H. R. 1530—88
to the accomplishment of the mission which necessitates the
travel.
(d) PLAN FOR PROGRAM.—Before conducting the program, the
Secretary shall develop a plan for the program that addresses
the following:
(1) The purposes of the program, including the achievement
of an objective of reducing by at least 50 percent the total
cost incurred by the Department annually to manage the
Department of Defense travel process.
(2) The methodology and anticipated cost of the program,
including the cost of an arrangement pursuant to which a
private-sector source would receive an agreed-upon payment
plus an additional negotiated amount that does not exceed
50 percent of the total amount saved in excess of the objective
specified in paragraph (1).
(3) A specific citation to any provision or law, rule, or
regulation that, if not waived, would prohibit the conduct of
the program or any part of the program.
(4) The evaluation criteria established pursuant to sub-
section (c).
(5) A provision for implementing throughout the Depart-
ment the travel process determined to be the better option
to effectively manage travel of Department personnel on the
basis of a final assessment of the results of the program.
(e) REPORT.—After the first full year of the conduct of the
tests required by subsection (b), the Secretary shall submit to
the Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives a report
on the implementation of the program. The report shall include
an analysis of the evaluation criteria established pursuant to sub-
section (c).
SEC. 357. INCREASED RELIANCE ON PRIVATE-SECTOR SOURCES FOR
COMMERCIAL PRODUCTS AND SERVICES.
(a) IN GENERAL.—The Secretary of Defense shall endeavor to
carry out through a private-sector source any activity to provide
a commercial product or service for the Department of Defense
if—
(1) the product or service can be provided adequately
through such a source; and
(2) an adequate competitive environment exists to provide
for economical performance of the activity by such a source.
(b) APPLICABILITY.—(1) Subsection (a) shall not apply to any
commercial product or service with respect to which the Secretary
determines that production, manufacture, or provision of that prod-
uct or service by the Government is necessary for reasons of national
security.
(2) A determination under paragraph (1) shall be made in
accordance with regulations prescribed under subsection (c).
(c) REGULATIONS.—The Secretary shall prescribe regulations
to carry out this section. Such regulations shall be prescribed in
consultation with the Director of the Office of Management and
Budget.
(d) REPORT.—(1) The Secretary shall identify activities of the
Department (other than activities specified by the Secretary pursu-
ant to subsection (b)) that are carried out by employees of the
H. R. 1530—89
Department to provide commercial-type products or services for
the Department.
(2) Not later than April 15, 1996, the Secretary shall transmit
to the congressional defense committees a report on opportunities
for increased use of private-sector sources to provide commercial
products and services for the Department.
(3) The report required by paragraph (2) shall include the
following:
(A) A list of activities identified under paragraph (1)
indicating, for each activity, whether the Secretary proposes
to convert the performance of that activity to performance
by private-sector sources and, if not, the reasons why.
(B) An assessment of the advantages and disadvantages
of using private-sector sources, rather than employees of the
Department, to provide commercial products and services for
the Department that are not essential to the warfighting mis-
sion of the Armed Forces.
(C) A specification of all legislative and regulatory impedi-
ments to converting the performance of activities identified
under paragraph (1) to performance by private-sector sources.
(D) The views of the Secretary on the desirability of termi-
nating the applicability of OMB Circular A–76 to the Depart-
ment.
(4) The Secretary shall carry out paragraph (1) in consultation
with the Director of the Office of Management and Budget and
the Comptroller General of the United States. In carrying out
that paragraph, the Secretary shall consult with, and seek the
views of, representatives of the private sector, including organiza-
tions representing small businesses.
Subtitle F—Miscellaneous Reviews,
Studies, and Reports
SEC. 361. QUARTERLY READINESS REPORTS.
(a) IN GENERAL.—(1) Chapter 22 of title 10, United States
Code, is amended by adding at the end the following new section:
‘‘§ 452. Quarterly readiness reports
‘‘(a) REQUIREMENT.—Not later than 30 days after the end of
each calendar-year quarter, the Secretary of Defense shall submit
to the Committee on Armed Services of the Senate and the Commit-
tee on National Security of the House of Representatives a report
on military readiness. The report for any quarter shall be based
on assessments that are provided during that quarter—
‘‘(1) to any council, committee, or other body of the Depart-
ment of Defense (A) that has responsibility for readiness over-
sight, and (B) the membership of which includes at least one
civilian officer in the Office of the Secretary of Defense at
the level of Assistant Secretary of Defense or higher;
‘‘(2) by senior civilian and military officers of the military
departments and the commanders of the unified and specified
commands; and
‘‘(3) as part of any regularly established process of periodic
readiness reviews for the Department of Defense as a whole.
‘‘(b) MATTERS TO BE INCLUDED.—Each such report shall—
H. R. 1530—90
‘‘(1) specifically describe identified readiness problems or
deficiencies and planned remedial actions; and
‘‘(2) include the key indicators and other relevant data
related to the identified problem or deficiency.
‘‘(c) CLASSIFICATION OF REPORTS.—Reports under this section
shall be submitted in unclassified form and may, as the Secretary
determines necessary, also be submitted in classified form.’’.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:
‘‘452. Quarterly readiness reports.’’.
(b) EFFECTIVE DATE.—Section 452 of title 10, United States Code,
as added by subsection (a), shall take effect with the calendar-
year quarter during which this Act is enacted.
SEC. 362. RESTATEMENT 
OF 
REQUIREMENT 
FOR 
SEMIANNUAL
REPORTS TO CONGRESS ON TRANSFERS FROM HIGH-
PRIORITY READINESS APPROPRIATIONS.
Section 361 of the National Defense Authorization Act for Fiscal
Year 1995 (Public Law 103–337; 108 Stat. 2732) is amended to
read as follows:
‘‘SEC. 361. SEMIANNUAL REPORTS TO CONGRESS ON TRANSFERS
FROM HIGH-PRIORITY READINESS APPROPRIATIONS.
‘‘(a) ANNUAL REPORTS.—During 1996 and 1997, the Secretary
of Defense shall submit to the congressional defense committees
a report on transfers during the preceding fiscal year from funds
available for each budget activity specified in subsection (d) (herein-
after in this section referred to as ‘covered budget activities’). The
report each year shall be submitted not later than the date in
that year on which the President submits the budget for the next
fiscal year to Congress pursuant to section 1105 of title 31, United
States Code.
‘‘(b) MIDYEAR REPORTS.—On May 1 of each year specified in
subsection (a), the Secretary of Defense shall submit to the congres-
sional defense committees a report providing the same information,
with respect to the first six months of the fiscal year in which
the report is submitted, that is provided in reports under subsection
(a) with respect to the preceding fiscal year.
‘‘(c) MATTERS TO BE INCLUDED.—In each report under this
section, the Secretary shall include for each covered budget activity
the following:
‘‘(1) A statement, for the period covered by the report,
of—
‘‘(A) the total amount of transfers into funds available
for that activity;
‘‘(B) the total amount of transfers from funds available
for that activity; and
‘‘(C) the net amount of transfers into, or out of, funds
available for that activity.
‘‘(2) A detailed explanation of the transfers into, and out
of, funds available for that activity during the period covered
by the report.
‘‘(d) COVERED BUDGET ACTIVITIES.—The budget activities to
which this section applies are the following:
‘‘(1) The budget activity groups (known as ‘subactivities’)
within the Operating Forces budget activity of the annual Oper-
H. R. 1530—91
ation and Maintenance, Army, appropriation that are des-
ignated as follows:
‘‘(A) Combat Units.
‘‘(B) Tactical Support.
‘‘(C) Force-Related Training/Special Activities.
‘‘(D) Depot Maintenance.
‘‘(E) JCS Exercises.
‘‘(2) The budget activity groups (known as ‘subactivities’)
within the Operating Forces budget activity of the annual Oper-
ation and Maintenance, Navy, appropriation that are des-
ignated as follows:
‘‘(A) Mission and Other Flight Operations.
‘‘(B) Mission and Other Ship Operations.
‘‘(C) Fleet Air Training.
‘‘(D) Ship Operational Support and Training.
‘‘(E) Aircraft Depot Maintenance.
‘‘(F) Ship Depot Maintenance.
‘‘(3) The budget activity groups (known as ‘subactivities’),
or other activity, within the Operating Forces budget activity
of the annual Operation and Maintenance, Air Force, appropria-
tion that are designated or otherwise identified as follows:
‘‘(A) Primary Combat Forces.
‘‘(B) Primary Combat Weapons.
‘‘(C) Global and Early Warning.
‘‘(D) Air Operations Training.
‘‘(E) Depot Maintenance.
‘‘(F) JCS Exercises.’’.
SEC. 363. REPORT REGARDING REDUCTION OF COSTS ASSOCIATED
WITH CONTRACT MANAGEMENT OVERSIGHT.
(a) REPORT REQUIRED.—Not later than April 1, 1996, the
Comptroller General of the United States shall submit to Congress
a report identifying methods to reduce the cost to the Department
of Defense of management oversight of contracts in connection
with major defense acquisition programs.
(b) MAJOR DEFENSE ACQUISITION PROGRAMS DEFINED.—For
purposes of this section, the term ‘‘major defense acquisition pro-
gram’’ has the meaning given that term in section 2430(a) of title
10, United States Code.
SEC. 364. REVIEWS OF MANAGEMENT OF INVENTORY CONTROL
POINTS AND MATERIEL MANAGEMENT STANDARD SYSTEM.
(a) REVIEW
OF
CONSOLIDATION
OF
INVENTORY
CONTROL
POINTS.—(1) The Secretary of Defense shall conduct a review of
the management by the Defense Logistics Agency of all inventory
control points of the Department of Defense. In conducting the
review, the Secretary shall examine the management and acquisi-
tion practices of the Defense Logistics Agency for inventory of
repairable spare parts.
(2) Not later than March 31, 1996, the Secretary shall submit
to the Comptroller General of the United States and the congres-
sional defense committees a report on the results the review con-
ducted under paragraph (1).
(b) REVIEW OF MATERIEL MANAGEMENT STANDARD SYSTEM.—
(1) The Comptroller General of the United States shall conduct
a review of the automated data processing system of the Department
of Defense known as the Materiel Management Standard System.
H. R. 1530—92
(2) Not later than May 1, 1996, the Comptroller General shall
submit to the congressional defense committees a report on the
results of the review conducted under paragraph (1).
SEC. 365. REPORT ON PRIVATE PERFORMANCE OF CERTAIN FUNC-
TIONS PERFORMED BY MILITARY AIRCRAFT.
(a) REPORT REQUIRED.—Not later than May 1, 1996, the Sec-
retary of Defense shall submit to Congress a report on the feasibility
of providing for the performance by private-sector sources of func-
tions necessary to be performed to fulfill the requirements of the
Department of Defense for air transportation of personnel and
cargo.
(b) CONTENT OF REPORT.—The report shall include the follow-
ing:
(1) A cost-benefit analysis with respect to the performance
by private-sector sources of functions described in subsection
(a), including an explanation of the assumptions used in the
cost-benefit analysis.
(2) An assessment of the issues raised by providing for
such performance by means of a contract entered into with
a private-sector source.
(3) An assessment of the issues raised by providing for
such performance by means of converting functions described
in subsection (a) to private ownership and operation, in whole
or in part.
(4) A discussion of the requirements for the performance
of such functions in order to fulfill the requirements referred
to in subsection (a) during wartime.
(5) The effect on military personnel and facilities of using
private-sector sources to fulfill the requirements referred to
in such subsection.
(6) The performance by private-sector sources of any other
military aircraft functions (such as non-combat inflight fueling
of aircraft) the Secretary considers appropriate.
SEC. 366. STRATEGY AND REPORT ON AUTOMATED INFORMATION
SYSTEMS OF DEPARTMENT OF DEFENSE.
(a) DEVELOPMENT
OF STRATEGY.—The Secretary of Defense
shall develop a strategy for the development or modernization of
automated information systems for the Department of Defense.
(b) MATTERS TO CONSIDER.—In developing the strategy required
under subsection (a), the Secretary shall consider the following:
(1) The use of performance measures and management
controls.
(2) Findings of the Functional Management Review con-
ducted by the Secretary.
(3) Program management actions planned by the Secretary.
(4) Actions and milestones necessary for completion of func-
tional and economic analyses for—
(A) the Automated System for Transportation data;
(B) continuous acquisition and life cycle support;
(C) electronic data interchange;
(D) flexible computer integrated manufacturing;
(E) the Navy Tactical Command Support System; and
(F) the Defense Information System Network.
(5) Progress made by the Secretary in resolving problems
with respect to the Defense Information System Network and
H. R. 1530—93
the Joint Computer-Aided Acquisition and Logistics Support
System.
(6) Tasks identified in the review conducted by the Sec-
retary of the Standard Installation/Division Personnel System-
3.
(7) Such other matters as the Secretary considers appro-
priate.
(c) REPORT ON STRATEGY.—(1) Not later than April 15, 1996,
the Secretary shall submit to Congress a report on the development
of the strategy required under subsection (a).
(2) In the case of the Air Force Wargaming Center, the Air
Force Command Exercise System, the Cheyenne Mountain Upgrade,
the Transportation Coordinator Automated Command and Control
Information Systems, and the Wing Command and Control Systems,
the report required by paragraph (1) shall provide functional eco-
nomic analyses and address waivers exercised for compelling mili-
tary importance under section 381(d) of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108
Stat. 2739).
(3) The report required by paragraph (1) shall also include
the following:
(A) A certification by the Secretary of the termination
of the Personnel Electronic Record Management System or
a justification for the continued need for such system.
(B) Findings of the Functional Management Review con-
ducted by the Secretary and program management actions
planned by the Secretary for—
(i) the Base Level System Modernization and the
Sustaining Base Information System; and
(ii) the Standard Installation/Division Personnel Sys-
tem-3.
(C) An assessment of the implementation of migration sys-
tems and applications, including—
(i) identification of the systems and applications by
functional or business area, specifying target dates for oper-
ation of the systems and applications;
(ii) identification of the legacy systems and applications
that will be terminated;
(iii) the cost of and schedules for implementing the
migration systems and applications; and
(iv) termination schedules.
(D) A certification by the Secretary that each information
system that is subject to review by the Major Automated
Information System Review Committee of the Department is
cost-effective and supports the corporate information manage-
ment goals of the Department, including the results of the
review conducted for each such system by the Committee.
Subtitle G—Other Matters
SEC. 371. CODIFICATION OF DEFENSE BUSINESS OPERATIONS FUND.
(a) MANAGEMENT OF WORKING-CAPITAL FUNDS.—(1) Chapter
131 of title 10, United States Code, is amended by inserting after
section 2215 the following new section:
H. R. 1530—94
‘‘§ 2216. Defense Business Operations Fund
‘‘(a) MANAGEMENT OF WORKING-CAPITAL FUNDS AND CERTAIN
ACTIVITIES.—The Secretary of Defense may manage the perform-
ance of the working-capital funds and industrial, commercial, and
support type activities described in subsection (b) through the fund
known as the Defense Business Operations Fund, which is estab-
lished on the books of the Treasury. Except for the funds and
activities specified in subsection (b), no other functions, activities,
funds, or accounts of the Department of Defense may be managed
or converted to management through the Fund.
‘‘(b) FUNDS AND ACTIVITIES INCLUDED.—The funds and activities
referred to in subsection (a) are the following:
‘‘(1) Working-capital funds established under section 2208
of this title and in existence on December 5, 1991.
‘‘(2) Those activities that, on December 5, 1991, were funded
through the use of a working-capital fund established under
that section.
‘‘(3) The Defense Finance and Accounting Service.
‘‘(4) The Defense Commissary Agency.
‘‘(5) The Defense Reutilization and Marketing Service.
‘‘(6) The Joint Logistics Systems Center.
‘‘(c) SEPARATE ACCOUNTING, REPORTING, AND AUDITING
OF
FUNDS AND ACTIVITIES.—(1) The Secretary of Defense shall provide
in accordance with this subsection for separate accounting, report-
ing, and auditing of funds and activities managed through the
Fund.
‘‘(2) The Secretary shall maintain the separate identity of each
fund and activity managed through the Fund that (before the
establishment of the Fund) was managed as a separate Fund or
activity.
‘‘(3) The Secretary shall maintain separate records for each
function for which payment is made through the Fund and which
(before the establishment of the Fund) was paid directly through
appropriations, including the separate identity of the appropriation
account used to pay for the performance of the function.
‘‘(d) CHARGES FOR GOODS AND SERVICES PROVIDED THROUGH
THE FUND.—(1) Charges for goods and services provided through
the Fund shall include the following:
‘‘(A) Amounts necessary to recover the full costs of the
goods and services, whenever practicable, and the costs of the
development, implementation, operation, and maintenance of
systems supporting the wholesale supply and maintenance
activities of the Department of Defense.
‘‘(B) Amounts for depreciation of capital assets, set in
accordance with generally accepted accounting principles.
‘‘(C) Amounts necessary to recover the full cost of the
operation of the Defense Finance Accounting Service.
‘‘(2) Charges for goods and services provided through the Fund
may not include the following:
‘‘(A) Amounts necessary to recover the costs of a military
construction project (as defined in section 2801(b) of this title),
other than a minor construction project financed by the Fund
pursuant to section 2805(c)(1) of this title.
‘‘(B) Amounts necessary to cover costs incurred in connec-
tion with the closure or realignment of a military installation.
‘‘(C) Amounts necessary to recover the costs of functions
designated by the Secretary of Defense as mission critical,
H. R. 1530—95
such as ammunition handling safety, and amounts for ancillary
tasks not directly related to the mission of the function or
activity managed through the Fund.
‘‘(3)(A) The Secretary of Defense may submit to a customer
a bill for the provision of goods and services through the Fund
in advance of the provision of those goods and services.
‘‘(B) The Secretary shall submit to Congress a report on advance
billings made pursuant to subparagraph (A)—
‘‘(i) when the aggregate amount of all such billings after
the date of the enactment of the National Defense Authorization
Act for Fiscal Year 1996 reaches $100,000,000; and
‘‘(ii) whenever the aggregate amount of all such billings
after the date of a preceding report under this subparagraph
reaches $100,000,000.
‘‘(C) Each report under subparagraph (B) shall include, for
each such advance billing, the following:
‘‘(i) An explanation of the reason for the advance billing.
‘‘(ii) An analysis of the impact of the advance billing on
readiness.
‘‘(iii) An analysis of the impact of the advance billing on
the customer so billed.
‘‘(e) CAPITAL ASSET SUBACCOUNT.—(1) Amounts charged for
depreciation of capital assets pursuant to subsection (d)(1)(B) shall
be credited to a separate capital asset subaccount established within
the Fund.
‘‘(2) The Secretary of Defense may award contracts for capital
assets of the Fund in advance of the availability of funds in the
subaccount.
‘‘(f) PROCEDURES FOR ACCUMULATION
OF FUNDS.—The Sec-
retary of Defense shall establish billing procedures to ensure that
the balance in the Fund does not exceed the amount necessary
to provide for the working capital requirements of the Fund, as
determined by the Secretary.
‘‘(g) PURCHASE
FROM
OTHER
SOURCES.—The Secretary of
Defense or the Secretary of a military department may purchase
goods and services that are available for purchase from the Fund
from a source other than the Fund if the Secretary determines
that such source offers a more competitive rate for the goods and
services than the Fund offers.
‘‘(h) ANNUAL REPORTS AND BUDGET.—The Secretary of Defense
shall annually submit to Congress, at the same time that the
President submits the budget under section 1105 of title 31, the
following:
‘‘(1) A detailed report that contains a statement of all
receipts and disbursements of the Fund (including such a state-
ment for each subaccount of the Fund) for the fiscal year
ending in the year preceding the year in which the budget
is submitted.
‘‘(2) A detailed proposed budget for the operation of the
Fund for the fiscal year for which the budget is submitted.
‘‘(3) A comparison of the amounts actually expended for
the operation of the Fund for the fiscal year referred to in
paragraph (1) with the amount proposed for the operation of
the Fund for that fiscal year in the President’s budget.
‘‘(4) A report on the capital asset subaccount of the Fund
that contains the following information:
H. R. 1530—96
‘‘(A) The opening balance of the subaccount as of the
beginning of the fiscal year in which the report is submit-
ted.
‘‘(B) The estimated amounts to be credited to the sub-
account in the fiscal year in which the report is submitted.
‘‘(C) The estimated amounts of outlays to be paid out
of the subaccount in the fiscal year in which the report
is submitted.
‘‘(D) The estimated balance of the subaccount at the
end of the fiscal year in which the report is submitted.
‘‘(E) A statement of how much of the estimated balance
at the end of the fiscal year in which the report is submitted
will be needed to pay outlays in the immediately following
fiscal year that are in excess of the amount to be credited
to the subaccount in the immediately following fiscal year.
‘‘(i) DEFINITIONS.—In this section:
‘‘(1) The term ‘capital assets’ means the following capital
assets that have a development or acquisition cost of not less
than $50,000:
‘‘(A) Minor construction projects financed by the Fund
pursuant to section 2805(c)(1) of this title.
‘‘(B) Automatic data processing equipment, software.
‘‘(C) Equipment other than equipment described in
subparagraph (B).
‘‘(D) Other capital improvements.
‘‘(2) The term ‘Fund’ means the Defense Business Oper-
ations Fund.’’.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 2215
the following new item:
‘‘2216. Defense Business Operations Fund.’’.
(b) CONFORMING REPEALS.—The following provisions of law are
hereby repealed:
(1) Subsections (b), (c), (d), and (e) of section 311 of the
National Defense Authorization Act for Fiscal Year 1995 (Public
Law 103–337; 10 U.S.C. 2208 note).
(2) Subsections (a) and (b) of section 333 of the National
Defense Authorization Act for Fiscal Year 1994 (Public Law
103–160; 10 U.S.C. 2208 note).
(3) Section 342 of the National Defense Authorization Act
for Fiscal Year 1993 (Public Law 102–484; 10 U.S.C. 2208
note).
(4) Section 316 of the National Defense Authorization Act
for Fiscal Years 1992 and 1993 (Public Law 102–190; 10 U.S.C.
2208 note).
(5) Section 8121 of the Department of Defense Appropria-
tions Act, 1992 (Public Law 102–172; 10 U.S.C. 2208 note).
SEC. 372. CLARIFICATION OF SERVICES AND PROPERTY THAT MAY
BE EXCHANGED TO BENEFIT THE HISTORICAL COLLEC-
TION OF THE ARMED FORCES.
Section 2572(b)(1) of title 10, United States Code, is amended
by striking out ‘‘not needed by the armed forces’’ and all that
follows through the end of the paragraph and inserting in lieu
thereof the following: ‘‘not needed by the armed forces for any
of the following items or services if such items or services directly
benefit the historical collection of the armed forces:
H. R. 1530—97
‘‘(A) Similar items held by any individual, organization,
institution, agency, or nation.
‘‘(B) Conservation supplies, equipment, facilities, or sys-
tems.
‘‘(C) Search, salvage, or transportation services.
‘‘(D) Restoration, conservation, or preservation services.
‘‘(E) Educational programs.’’.
SEC. 373. PROHIBITION ON CAPITAL LEASE FOR DEFENSE BUSINESS
MANAGEMENT UNIVERSITY.
None of the funds appropriated to the Department of Defense
for fiscal year 1996 may be used to enter into any lease with
respect to the Center for Financial Management Education and
Training of the Defense Business Management University if the
lease would be treated as a capital lease for budgetary purposes.
SEC. 374. PERMANENT AUTHORITY FOR USE OF PROCEEDS FROM THE
SALE OF CERTAIN LOST, ABANDONED, OR UNCLAIMED
PROPERTY.
(a) PERMANENT
AUTHORITY.—Section 2575 of title 10 is
amended—
(1) by striking out subsection (b) and inserting in lieu
thereof the following:
‘‘(b)(1) In the case of lost, abandoned, or unclaimed personal
property found on a military installation, the proceeds from the
sale of the property under this section shall be credited to the
operation and maintenance account of that installation and used—
‘‘(A) to reimburse the installation for any costs incurred
by the installation to collect, transport, store, protect, or sell
the property; and
‘‘(B) to the extent that the amount of the proceeds exceeds
the amount necessary for reimbursing all such costs, to support
morale, welfare, and recreation activities under the jurisdiction
of the armed forces that are conducted for the comfort, pleasure,
contentment, or physical or mental improvement of members
of the armed forces at such installation.
‘‘(2) The net proceeds from the sale of other property under
this section shall be covered into the Treasury as miscellaneous
receipts.’’; and
(2) by adding at the end the following:
‘‘(d)(1) The owner (or heirs, next of kin, or legal representative
of the owner) of personal property the proceeds of which are credited
to a military installation under subsection (b)(1) may file a claim
with the Secretary of Defense for the amount equal to the proceeds
(less costs referred to in subparagraph (A) of such subsection).
Amounts to pay the claim shall be drawn from the morale, welfare,
and recreation account for the installation that received the pro-
ceeds.
‘‘(2) The owner (or heirs, next of kin, or legal representative
of the owner) may file a claim with the Comptroller General of
the United States for proceeds covered into the Treasury under
subsection (b)(2).
‘‘(3) Unless a claim is filed under this subsection within 5
years after the date of the disposal of the property to which the
claim relates, the claim may not be considered by a court, the
Secretary of Defense (in the case of a claim filed under paragraph
(1)), or the Comptroller General of the United States (in the case
of a claim filed under paragraph (2)).’’.
H. R. 1530—98
(b) REPEAL OF AUTHORITY FOR DEMONSTRATION PROGRAM.—
Section 343 of the National Defense Authorization Act for Fiscal
Years 1992 and 1993 (Public Law 102–190; 105 Stat. 1343) is
repealed.
SEC. 375. SALE OF MILITARY CLOTHING AND SUBSISTENCE AND
OTHER SUPPLIES OF THE NAVY AND MARINE CORPS.
(a) IN GENERAL.—(1) Chapter 651 of title 10, United States
Code, is amended by adding at the end the following new section:
‘‘§ 7606. Subsistence and other supplies: members of armed
forces; veterans; executive or military depart-
ments and employees; prices
‘‘(a)(1) The Secretary of the Navy shall procure and sell, for
cash or credit—
‘‘(A) articles designated by the Secretary to members of
the Navy and Marine Corps; and
‘‘(B) items of individual clothing and equipment to members
of the Navy and Marine Corps, under such restrictions as
the Secretary may prescribe.
‘‘(2) An account of sales on credit shall be kept and the amount
due reported to the Secretary. Except for articles and items acquired
through the use of working capital funds under section 2208 of
this title, sales of articles shall be at cost, and sales of individual
clothing and equipment shall be at average current prices, including
overhead, as determined by the Secretary.
‘‘(b) The Secretary shall sell subsistence supplies to members
of other armed forces at the prices at which like property is sold
to members of the Navy and Marine Corps.
‘‘(c) The Secretary may sell serviceable supplies, other than
subsistence supplies, to members of other armed forces for the
buyers’ use in the service. The prices at which the supplies are
sold shall be the same prices at which like property is sold to
members of the Navy and Marine Corps.
‘‘(d) A person who has been discharged honorably or under
honorable conditions from the Army, Navy, Air Force or Marine
Corps and who is receiving care and medical treatment from the
Public Health Service or the Department of Veterans Affairs may
buy subsistence supplies and other supplies, except articles of uni-
form, at the prices at which like property is sold to members
of the Navy and Marine Corps.
‘‘(e) Under such conditions as the Secretary may prescribe,
exterior articles of uniform may be sold to a person who has been
discharged honorably or under honorable conditions from the Navy
or Marine Corps, at the prices at which like articles are sold
to members of the Navy or Marine Corps. This subsection does
not modify sections 772 or 773 of this title.
‘‘(f) Under regulations prescribed by the Secretary, payment
for subsistence supplies shall be made in cash or by commercial
credit.
‘‘(g)(1) The Secretary may provide for the procurement and
sale of stores designated by the Secretary to such civilian officers
and employees of the United States, and such other persons, as
the Secretary considers proper—
‘‘(A) at military installations outside the United States;
and
H. R. 1530—99
‘‘(B) subject to paragraph (2), at military installations inside
the United States where the Secretary determines that it is
impracticable for those civilian officers, employees, and persons
to obtain such stores from commercial enterprises without
impairing the efficient operation of military activities.
‘‘(2) Sales to civilian officers and employees inside the United
States may be made under paragraph (1) only to civilian officers
and employees residing within military installations.
‘‘(h) Appropriations for subsistence of the Navy or Marine Corps
may be applied to the purchase of subsistence supplies for sale
to members of the Navy and Marine Corps on active duty for
the use of such members and their families.’’.
(2) The table of sections at the beginning of chapter 651 of
such title is amended by adding at the end the following:
‘‘7606. Subsistence and other supplies: members of armed forces; veterans; executive
or military departments and employees; prices.’’.
(b) CONFORMING AMENDMENTS FOR OTHER ARMED FORCES.—
(1) Section 4621 of such title is amended—
(A) by striking out ‘‘The branch, office, or officer designated
by the Secretary of the Army’’ in subsection (a) and inserting
in lieu thereof ‘‘The Secretary of the Army’’;
(B) by striking out ‘‘The branch, office, or officer designated
by the Secretary’’ both places it appears in subsections (b)
and (c) and inserting in lieu thereof ‘‘The Secretary’’; and
(C) by inserting before the period at the end of subsection
(f) the following: ‘‘or by commercial credit’’.
(2) Section 9621 of such title is amended—
(A) by striking out ‘‘The Air Force shall’’ in subsection
(b) and inserting in lieu thereof ‘‘The Secretary shall’’; and
(B) by inserting before the period at the end of subsection
(f) the following: ‘‘or by commercial credit’’.
SEC. 376. PERSONNEL SERVICES AND LOGISTICAL SUPPORT FOR CER-
TAIN ACTIVITIES HELD ON MILITARY INSTALLATIONS.
Section 2544 of title 10, United States Code, is amended—
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f) the following new sub-
section:
‘‘(g) In the case of a Boy Scout Jamboree held on a military
installation, the Secretary of Defense may provide personnel serv-
ices and logistical support at the military installation in addition
to the support authorized under subsections (a) and (d).’’.
SEC. 377. RETENTION OF MONETARY AWARDS.
(a) MONETARY AWARDS.—Chapter 155 of title 10, United States
Code, is amended by adding at the end the following new section:
‘‘§ 2610. Competitions for excellence: acceptance of monetary
awards
‘‘(a) ACCEPTANCE AUTHORIZED.—The Secretary of Defense may
accept a monetary award given to the Department of Defense by
a nongovernmental entity as a result of the participation of the
Department in a competition carried out to recognize excellence
or innovation in providing services or administering programs.
‘‘(b) DISPOSITION
OF AWARDS.—A monetary award accepted
under 
subsection 
(a) 
shall 
be 
credited 
to 
one 
or 
more
nonappropriated fund accounts supporting morale, welfare, and
recreation activities for the command, installation, or other activity
H. R. 1530—100
that is recognized for the award. Amounts so credited may be
expended only for such activities.
‘‘(c) INCIDENTAL EXPENSES.—Subject to such limitations as may
be provided in appropriation Acts, appropriations available to the
Department of Defense may be used to pay incidental expenses
incurred by the Department to participate in a competition
described in subsection (a) or to accept a monetary award under
this section.
‘‘(d) REGULATIONS
AND REPORTING.—(1) The Secretary shall
prescribe regulations to determine the disposition of monetary
awards accepted under this section and the payment of incidental
expenses under subsection (c).
‘‘(2) At the end of each year, the Secretary shall submit to
Congress a report for that year describing the disposition of mone-
tary awards accepted under this section and the payment of inciden-
tal expenses under subsection (c).
‘‘(e) TERMINATION.—The authority of the Secretary under this
section shall expire two years after the date of the enactment
of the National Defense Authorization Act for Fiscal Year 1996.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following
new item:
‘‘2610. Competitions for excellence: acceptance of monetary awards.’’.
SEC. 378. PROVISION OF EQUIPMENT AND FACILITIES TO ASSIST IN
EMERGENCY RESPONSE ACTIONS.
Section 372 of title 10, United States Code, is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘The Secretary
of Defense’’; and
(2) by adding at the end the following new subsection:
‘‘(b) EMERGENCIES
INVOLVING
CHEMICAL
AND
BIOLOGICAL
AGENTS.—(1) In addition to equipment and facilities described in
subsection (a), the Secretary may provide an item referred to in
paragraph (2) to a Federal, State, or local law enforcement or
emergency response agency to prepare for or respond to an emer-
gency involving chemical or biological agents if the Secretary deter-
mines that the item is not reasonably available from another source.
‘‘(2) An item referred to in paragraph (1) is any material or
expertise of the Department of Defense appropriate for use in
preparing for or responding to an emergency involving chemical
or biological agents, including the following:
‘‘(A) Training facilities.
‘‘(B) Sensors.
‘‘(C) Protective clothing.
‘‘(D) Antidotes.’’.
SEC. 379. REPORT ON DEPARTMENT OF DEFENSE MILITARY AND
CIVIL DEFENSE PREPAREDNESS TO RESPOND TO EMER-
GENCIES RESULTING FROM A CHEMICAL, BIOLOGICAL,
RADIOLOGICAL, OR NUCLEAR ATTACK.
(a) REPORT.—(1) Not later than March 1, 1996, the Secretary
of Defense and the Secretary of Energy shall submit to Congress
a joint report on the military and civil defense plans and programs
of the Department of Defense to prepare for and respond to the
effects of an emergency in the United States resulting from a
chemical, biological, radiological, or nuclear attack on the United
H. R. 1530—101
States (hereinafter in this section referred to as an ‘‘attack-related
civil defense emergency’’).
(2) The report shall be prepared in consultation with the Direc-
tor of the Federal Emergency Management Agency.
(b) CONTENT OF REPORT.—The report shall include the follow-
ing:
(1) A discussion of the military and civil defense plans
and programs of the Department of Defense for preparing for
and responding to an attack-related civil defense emergency
arising from an attack of a type for which the Department
of Defense has a primary responsibility to respond.
(2) A discussion of the military and civil defense plans
and programs of the Department of Defense for preparing for
and providing a response to an attack-related civil defense
emergency arising from an attack of a type for which the
Department of Defense has responsibility to provide a support-
ing response.
(3) A description of any actions, and any recommended
legislation, that the Secretaries consider necessary for improv-
ing the preparedness of the Department of Defense to respond
effectively to an attack-related civil defense emergency.
TITLE IV—MILITARY PERSONNEL
AUTHORIZATIONS
Subtitle A—Active Forces
SEC. 401. END STRENGTHS FOR ACTIVE FORCES.
(a) FISCAL YEAR 1996.—The Armed Forces are authorized
strengths for active duty personnel as of September 30, 1996, as
follows:
(1) The Army, 495,000, of which not more than 81,300
may be commissioned officers.
(2) The Navy, 428,340, of which not more than 58,870
may be commissioned officers.
(3) The Marine Corps, 174,000, of which not more than
17,978 may be commissioned officers.
(4) The Air Force, 388,200, of which not more than 75,928
may be commissioned officers.
(b) FLOOR ON END STRENGTHS.—(1) Chapter 39 of title 10,
United States Code, is amended by adding at the end the following
new section:
‘‘§ 691. Permanent end strength levels to support two major
regional contingencies
‘‘(a) The end strengths specified in subsection (b) are the mini-
mum strengths necessary to enable the armed forces to fulfill a
national defense strategy calling for the United States to be able
to successfully conduct two nearly simultaneous major regional
contingencies.
‘‘(b) Unless otherwise provided by law, the number of members
of the armed forces (other than the Coast Guard) on active duty
at the end of any fiscal year shall be not less than the following:
‘‘(1) For the Army, 495,000.
‘‘(2) For the Navy, 395,000.
H. R. 1530—102
‘‘(3) For the Marine Corps, 174,000.
‘‘(4) For the Air Force, 381,000.
‘‘(c) No funds appropriated to the Department of Defense may
be used to implement a reduction of the active duty end strength
for any of the armed forces for any fiscal year below the level
specified in subsection (b) unless the Secretary of Defense submits
to Congress notice of the proposed lower end strength levels and
a justification for those levels. No action may then be taken to
implement such a reduction for that fiscal year until the end of
the six-month period beginning on the date of the receipt of such
notice by Congress.
‘‘(d) For a fiscal year for which the active duty end strength
authorized by law pursuant to section 115(a)(1)(A) of this title
for any of the armed forces is identical to the number applicable
to that armed force under subsection (b), the Secretary of Defense
may reduce that number by not more than 0.5 percent.
‘‘(e) The number of members of the armed forces on active
duty shall be counted for purposes of this section in the same
manner as applies under section 115(a)(1) of this title.’’.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:
‘‘691. Permanent end strength levels to support two major regional contingencies.’’.
(c) ACTIVE COMPONENT END STRENGTH FLEXIBILITY.—Section
115(c)(1) of title 10, United States Code, is amended by striking
out ‘‘0.5 percent’’ and inserting in lieu thereof ‘‘1 percent’’.
SEC. 402. TEMPORARY VARIATION IN DOPMA AUTHORIZED END
STRENGTH LIMITATIONS FOR ACTIVE DUTY AIR FORCE
AND NAVY OFFICERS IN CERTAIN GRADES.
(a) AIR FORCE OFFICERS.—In the administration of the limita-
tion under section 523(a)(1) of title 10, United States Code, for
fiscal years 1996 and 1997, the numbers applicable to officers
of the Air Force serving on active duty in the grades of major,
lieutenant colonel, and colonel shall be the numbers set forth for
that fiscal year in the following table (rather than the numbers
determined in accordance with the table in that section):
Fiscal year:
Number of officers who may be serving on active duty in the grade
of:
Major
Lieutenant colonel
Colonel
1996 ....
15,566
9,876
3,609
1997 ....
15,645
9,913
3,627
(b) NAVY OFFICERS.—In the administration of the limitation
under section 523(a)(2) of title 10, United States Code, for fiscal
years 1996 and 1997, the numbers applicable to officers of the
Navy serving on active duty in the grades of lieutenant commander,
commander, and captain shall be the numbers set forth for that
fiscal year in the following table (rather than the numbers deter-
mined in accordance with the table in that section):
H. R. 1530—103
Fiscal year:
Number of officers who may be serving on active duty in the grade
of:
Lieutenant com-
mander
Commander
Captain
1996 ....
11,924
7,390
3,234
1997 ....
11,732
7,297
3,188
SEC. 403. CERTAIN GENERAL AND FLAG OFFICERS AWAITING RETIRE-
MENT NOT TO BE COUNTED.
(a) DISTRIBUTION OF OFFICERS ON ACTIVE DUTY IN GENERAL
AND FLAG OFFICER GRADES.—Section 525 of title 10, United States
Code, is amended by adding at the end the following new subsection:
‘‘(d) An officer continuing to hold the grade of general or admiral
under section 601(b)(4) of this title after relief from the position
of Chairman of the Joint Chiefs of Staff, Chief of Staff of the
Army, Chief of Naval Operations, Chief of Staff of the Air Force,
or Commandant of the Marine Corps shall not be counted for
purposes of this section.’’.
(b) NUMBER OF OFFICERS ON ACTIVE DUTY IN GRADE OF GEN-
ERAL OR ADMIRAL.—Section 528(b) of such title is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(2) by adding at the end the following:
‘‘(2) An officer continuing to hold the grade of general or admiral
under section 601(b)(4) of this title after relief from the position
of Chairman of the Joint Chiefs of Staff, Chief of Staff of the
Army, Chief of Naval Operations, Chief of Staff of the Air Force,
or Commandant of the Marine Corps shall not be counted for
purposes of this section.’’.
(c) CLARIFICATION.—Section 601(b) of such title is amended—
(1) in the matter preceding paragraph (1), by striking out
‘‘of importance and responsibility designated’’ and inserting
in lieu thereof ‘‘designated under subsection (a) or by law’’;
(2) in paragraph (1), by striking out ‘‘of importance and
responsibility’’;
(3) in paragraph (2), by striking out ‘‘designating’’ and
inserting in lieu thereof ‘‘designated under subsection (a) or
by law’’; and
(4) in paragraph (4), by inserting ‘‘under subsection (a)
or by law’’ after ‘‘designated’’.
Subtitle B—Reserve Forces
SEC. 411. END STRENGTHS FOR SELECTED RESERVE.
(a) FISCAL YEAR 1996.—The Armed Forces are authorized
strengths for Selected Reserve personnel of the reserve components
as of September 30, 1996, as follows:
(1) The Army National Guard of the United States, 373,000.
(2) The Army Reserve, 230,000.
(3) The Naval Reserve, 98,894.
(4) The Marine Corps Reserve, 42,274.
(5) The Air National Guard of the United States, 112,707.
(6) The Air Force Reserve, 73,969.
(7) The Coast Guard Reserve, 8,000.
H. R. 1530—104
(b) WAIVER AUTHORITY.—The Secretary of Defense may vary
the end strength authorized by subsection (a) by not more than
2 percent.
(c) ADJUSTMENTS.—The end strengths prescribed by subsection
(a) for the Selected Reserve of any reserve component for a fiscal
year shall be proportionately reduced by—
(1) the total authorized strength of units organized to serve
as units of the Selected Reserve of such component which
are on active duty (other than for training) at the end of
the fiscal year, and
(2) the total number of individual members not in units
organized to serve as units of the Selected Reserve of such
component who are on active duty (other than for training
or for unsatisfactory participation in training) without their
consent at the end of the fiscal year.
Whenever such units or such individual members are released
from active duty during any fiscal year, the end strength prescribed
for such fiscal year for the Selected Reserve of such reserve compo-
nent shall be proportionately increased by the total authorized
strengths of such units and by the total number of such individual
members.
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUP-
PORT OF THE RESERVES.
Within the end strengths prescribed in section 411(a), the
reserve components of the Armed Forces are authorized, as of
September 30, 1996, the following number of Reserves to be serving
on full-time active duty or full-time duty, in the case of members
of the National Guard, for the purpose of organizing, administering,
recruiting, instructing, or training the reserve components:
(1) The Army National Guard of the United States, 23,390.
(2) The Army Reserve, 11,575.
(3) The Naval Reserve, 17,587.
(4) The Marine Corps Reserve, 2,559.
(5) The Air National Guard of the United States, 10,066.
(6) The Air Force Reserve, 628.
SEC. 413. COUNTING OF CERTAIN ACTIVE COMPONENT PERSONNEL
ASSIGNED IN SUPPORT OF RESERVE COMPONENT TRAIN-
ING.
Section 414(c) of the National Defense Authorization Act for
Fiscal Years 1992 and 1993 (Public Law 102–190; 10 U.S.C. 12001
note) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary’’; and
(2) by adding at the end the following new paragraph:
‘‘(2) The Secretary of Defense may count toward the number
of active component personnel required under paragraph (1) to
be assigned to serve as advisers under the program under this
section any active component personnel who are assigned to an
active component unit (A) that was established principally for the
purpose of providing dedicated training support to reserve compo-
nent units, and (B) the primary mission of which is to provide
such dedicated training support.’’.
H. R. 1530—105
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 Com-
mander ..................................
3,219
1,071
643
140
Lieutenant Colonel or Com-
mander ..................................
1,524
520
672
Colonel or Navy Captain ........
412
188
274
30’’.
(b) SENIOR ENLISTED MEMBERS.—The table in section 12012(a)
of such title is amended to read as follows:
‘‘Grade
Army
Navy
Air
Force
Marine
Corps
E–9 ...........................................
603
202
366
E–8 ...........................................
2,585
429
890
94’’.
SEC. 415. RESERVES ON ACTIVE DUTY IN SUPPORT OF COOPERATIVE
THREAT REDUCTION PROGRAMS NOT TO BE COUNTED.
Section 115(d) of title 10, United States Code, is amended
by adding at the end the following:
‘‘(8) Members of the Selected Reserve of the Ready Reserve
on active duty for more that 180 days to support programs
described in section 1203(b) of the Cooperative Threat Reduc-
tion Act of 1993 (title XII of Public Law 103–160; 22 U.S.C.
5952(b)).’’.
SEC. 416. RESERVES ON ACTIVE DUTY FOR MILITARY-TO-MILITARY
CONTACTS AND COMPARABLE ACTIVITIES NOT TO BE
COUNTED.
Section 168 of title 10, United States Code, is amended—
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new sub-
section (f):
‘‘(f) ACTIVE DUTY END STRENGTHS.—(1) A member of a reserve
component referred to in paragraph (2) shall not be counted for
purposes of the following personnel strength limitations:
‘‘(A) The end strength for active-duty personnel authorized
pursuant to section 115(a)(1) of this title for the fiscal year
in which the member carries out the activities referred to
in paragraph (2).
‘‘(B) The authorized daily average for members in pay
grades E–8 and E–9 under section 517 of this title for the
calendar year in which the member carries out such activities.
‘‘(C) The authorized strengths for commissioned officers
under section 523 of this title for the fiscal year in which
the member carries out such activities.
H. R. 1530—106
‘‘(2) A member of a reserve component referred to in paragraph
(1) is any member on active duty under an order to active duty
for 180 days or more who is engaged in activities authorized under
this section.’’.
Subtitle C—Military Training Student
Loads
SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.
(a) IN GENERAL.—For fiscal year 1996, the components of the
Armed Forces are authorized average military training loads as
follows:
(1) The Army, 75,013.
(2) The Navy, 44,238.
(3) The Marine Corps, 26,095.
(4) The Air Force, 33,232.
(b) SCOPE.—The average military training student loads author-
ized for an armed force under subsection (a) apply to the active
and reserve components of that armed force.
(c) ADJUSTMENTS.—The average military training student loads
authorized in subsection (a) shall be adjusted consistent with the
end strengths authorized in subtitles A and B. The Secretary of
Defense shall prescribe the manner in which such adjustments
shall be apportioned.
Subtitle D—Authorization of
Appropriations
SEC. 431. AUTHORIZATION 
OF 
APPROPRIATIONS 
FOR 
MILITARY
PERSONNEL.
There is hereby authorized to be appropriated to the Depart-
ment of Defense for military personnel for fiscal year 1996 a total
of $69,191,008,000. The authorization in the preceding sentence
supersedes any other authorization of appropriations (definite or
indefinite) for such purpose for fiscal year 1996.
SEC. 432. AUTHORIZATION FOR INCREASE IN ACTIVE-DUTY END
STRENGTHS.
(a) AUTHORIZATION.—There is hereby authorized to be appro-
priated to the Department of Defense for fiscal year 1996 for mili-
tary personnel the sum of $112,000,000. Any amount appropriated
pursuant to this section shall be allocated, in such manner as
the Secretary of Defense prescribes, among appropriations for
active-component military personnel for that fiscal year and shall
be available only to increase the number of members of the Armed
Forces on active duty during that fiscal year (compared to the
number of members that would be on active duty but for such
appropriation).
(b) EFFECT ON END STRENGTHS.—The end-strength authoriza-
tions in section 401 shall each be deemed to be increased by such
number as necessary to take account of additional members of
the Armed Forces authorized by the Secretary of Defense pursuant
to subsection (a).
H. R. 1530—107
TITLE V—MILITARY PERSONNEL
POLICY
Subtitle A—Officer Personnel Policy
SEC. 501. JOINT OFFICER MANAGEMENT.
(a) CRITICAL JOINT DUTY ASSIGNMENT POSITIONS.—Section
661(d)(2)(A) of title 10, United States Code, is amended by striking
out ‘‘1,000’’ and inserting in lieu thereof ‘‘800’’.
(b) ADDITIONAL QUALIFYING JOINT SERVICE.—Section 664 of
such title is amended by adding at the end the following:
‘‘(i) JOINT DUTY CREDIT
FOR CERTAIN JOINT TASK FORCE
ASSIGNMENTS.—(1) In the case of an officer who completes service
in a qualifying temporary joint task force assignment, the Secretary
of Defense, with the advice of the Chairman of the Joint Chiefs
of Staff, may (subject to the criteria prescribed under paragraph
(4)) grant the officer—
‘‘(A) credit for having completed a full tour of duty in
a joint duty assignment; or
‘‘(B) credit countable for determining cumulative service
in joint duty assignments.
‘‘(2)(A) For purposes of paragraph (1), a qualifying temporary
joint task force assignment of an officer is a temporary assignment,
any part of which is performed by the officer on or after the
date of the enactment of this subsection—
‘‘(i) to the headquarters staff of a United States joint task
force that is part of a unified command or the United States
element of the headquarters staff of a multinational force;
and
‘‘(ii) with respect to which the Secretary of Defense deter-
mines that service of the officer in that assignment is equivalent
to that which would be gained by the officer in a joint duty
assignment.
‘‘(B) An officer may not be granted credit under this subsection
unless the officer is recommended for such credit by the Chairman
of the Joint Chiefs of Staff.
‘‘(3) Credit under paragraph (1) (including a determination
under paragraph (2)(A)(ii) and a recommendation under paragraph
(2)(B) with respect to such credit) may be granted only on a case-
by-case basis in the case of an individual officer.
‘‘(4) The Secretary of Defense shall prescribe by regulation
criteria for determining whether an officer may be granted credit
under paragraph (1) with respect to service in a qualifying tem-
porary joint task force assignment. The criteria shall apply uni-
formly among the armed forces and shall include the following
requirements:
‘‘(A) For an officer to be credited as having completed
a full tour of duty in a joint duty assignment, the length
of the officer’s service in the qualifying temporary joint task
force assignment must meet the requirements of subsection
(a) or (c).
‘‘(B) For an officer to be credited with service for purposes
of determining cumulative service in joint duty assignments,
the officer must serve at least 90 consecutive days in the
qualifying temporary joint task force assignment.
H. R. 1530—108
‘‘(C) The service must be performed in support of a mission
that is directed by the President or that is assigned by the
President to United States forces in the joint task force
involved.
‘‘(D) The joint task force must be constituted or designated
by the Secretary of Defense or by the commander of a combatant
command or of another force.
‘‘(E) The joint task force must conduct combat or combat-
related operations in a unified action under joint or multi-
national command and control.
‘‘(5) Officers for whom joint duty credit is granted pursuant
to this subsection may not be taken into account for the purposes
of any of the following provisions of this title: section 661(d)(1),
section 662(a)(3), section 662(b), subsection (a) of this section, and
paragraphs (7), (8), (9), (11), and (12) of section 667.
‘‘(6) In the case of an officer credited with having completed
a full tour of duty in a joint duty assignment pursuant to this
subsection, the Secretary of Defense may waive the requirement
in paragraph (1)(B) of section 661(c) of this title that the tour
of duty in a joint duty assignment be performed after the officer
completes a program of education referred to in paragraph (1)(A)
of that section. The provisions of subparagraphs (C) and (D) of
section 661(c)(3) of this title shall apply to such a waiver in the
same manner as to a waiver under subparagraph (A) of that sec-
tion.’’.
(c) INFORMATION IN ANNUAL REPORT.—Section 667 of such title
is amended by striking out paragraph (16) and inserting after
paragraph (15) the following new paragraph (16):
‘‘(16) The number of officers granted credit for service in
joint duty assignments under section 664(i) of this title and—
‘‘(A) of those officers—
‘‘(i) the number of officers credited with having
completed a tour of duty in a joint duty assignment;
and
‘‘(ii) the number of officers granted credit for pur-
poses of determining cumulative service in joint duty
assignments; and
‘‘(B) the identity of each operation for which an officer
has been granted credit pursuant to section 664(i) of this
title and a brief description of the mission of the operation.’’.
(d) APPLICABILITY OF LIMITATION ON WAIVER AUTHORITY.—Sec-
tion 661(c)(3) of such title is amended—
(1) in the third sentence of subparagraph (D), by striking
out ‘‘The total number’’ and inserting in lieu thereof ‘‘In the
case of officers in grades below brigadier general and rear
admiral (lower half), the total number’’; and
(2) by adding at the end the following new subparagraph:
‘‘(E) There may not be more than 32 general and flag officers
on active duty at the same time who were selected for the joint
specialty while holding a general or flag officer grade and for
whom a waiver was granted under this subparagraph.’’.
(e) LENGTH OF SECOND JOINT TOUR.—Section 664 of such title
is amended—
(1) in subsection (e)(2), by inserting after subparagraph
(B) the following:
‘‘(C) Service described in subsection (f)(6), except that no
more than 10 percent of all joint duty assignments shown
H. R. 1530—109
on the list published pursuant to section 668(b)(2)(A) of this
title may be so excluded in any year.’’; and
(2) in subsection (f)—
(A) in the matter preceding paragraph (1), by striking
out ‘‘completion of—’’ and inserting in lieu thereof ‘‘comple-
tion of any of the following:’’;
(B) by striking out ‘‘a’’ at the beginning of paragraphs
(1), (2), (4), and (5) and inserting in lieu thereof ‘‘A’’;
(C) by striking out ‘‘cumulative’’ in paragraph (3) and
inserting in lieu thereof ‘‘Cumulative’’;
(D) by striking out the semicolon at the end of para-
graphs (1), (2), and (3) and ‘‘; or’’ at the end of paragraph
(4) and inserting in lieu thereof a period; and
(E) by adding at the end the following:
‘‘(6) A second joint duty assignment that is less than the
period required under subsection (a), but not less than two
years, without regard to whether a waiver was granted for
such assignment under subsection (b).’’.
(f) TECHNICAL AMENDMENT.—Section 664(e)(1) of such title is
amended by striking out ‘‘(after fiscal year 1990)’’.
SEC. 502. RETIRED GRADE FOR OFFICERS IN GRADES ABOVE MAJOR
GENERAL AND REAR ADMIRAL.
(a) APPLICABILITY OF TIME-IN-GRADE REQUIREMENTS.—Section
1370 of title 10, United States Code, is amended—
(1) in subsection (a)(2)(A), by striking out ‘‘and below
lieutenant general or vice admiral’’; and
(2) in the first sentence of subsection (d)(2)(B), as added
effective October 1, 1996, by section 1641 of the Reserve Officer
Personnel Management Act (title XVI of Public Law 103–337;
108 Stat. 2968), by striking out ‘‘and below lieutenant general
or vice admiral’’.
(b) RETIREMENT IN HIGHEST GRADE UPON CERTIFICATION OF
SATISFACTORY SERVICE.—Subsection (c) of such section is amended
to read as follows:
‘‘(c) OFFICERS IN O–9 AND O–10 GRADES.—(1) An officer who
is serving in or has served in the grade of general or admiral
or lieutenant general or vice admiral may be retired in that grade
under subsection (a) only after the Secretary of Defense certifies
in writing to the President and Congress that the officer served
on active duty satisfactorily in that grade.
‘‘(2) In the case of an officer covered by paragraph (1), the
three-year service-in-grade requirement in paragraph (2)(A) of sub-
section (a) may not be reduced or waived under that subsection—
‘‘(A) while the officer is under investigation for alleged
misconduct; or
‘‘(B) while there is pending the disposition of an adverse
personnel action against the officer for alleged misconduct.’’.
(c) REPEAL
OF SUPERSEDED PROVISIONS.—Sections 3962(a),
5034, 5043(c), and 8962(a) of such title are repealed.
(d) TECHNICAL
AND
CLERICAL
AMENDMENTS.—(1) Sections
3962(b) and 8962(b) of such title are amended by striking out
‘‘(b) Upon’’ and inserting in lieu thereof ‘‘Upon’’.
(2) The table of sections at the beginning of chapter 505 of
such title is amended by striking out the item relating to section
5034.
H. R. 1530—110
(e) EFFECTIVE DATE FOR AMENDMENT TO PROVISION TAKING
EFFECT IN 1996.—The amendment made by subsection (a)(2) shall
take effect on October 1, 1996, immediately after subsection (d)
of section 1370 of title 10, United States Code, takes effect under
section 1691(b)(1) of the Reserve Officer Personnel Management
Act (108 Stat. 3026).
(f) PRESERVATION OF APPLICABILITY OF LIMITATION.—Section
1370(a)(2)(C) of title 10, United States Code, is amended by striking
out ‘‘The number of officers in an armed force in a grade’’ and
inserting in lieu thereof ‘‘In the case of a grade below the grade
of lieutenant general or vice admiral, the number of members
of one of the armed forces in that grade’’.
(g) STYLISTIC AMENDMENTS.—Section 1370 of title 10, United
States Code, is further amended—
(1) in subsection (a), by striking out ‘‘(a)(1)’’ and inserting
in lieu thereof ‘‘(a) RULE FOR RETIREMENT IN HIGHEST GRADE
HELD SATISFACTORILY.—(1)’’;
(2) in subsection (b), by inserting ‘‘RETIREMENT IN NEXT
LOWER GRADE.—’’ after ‘‘(b)’’; and
(3) in subsection (d), as added effective October 1, 1996,
by section 1641 of the Reserve Officer Personnel Management
Act (title XVI of Public Law 103–337; 108 Stat. 2968), by
striking out ‘‘(d)(1)’’ and inserting in lieu thereof ‘‘(d) RESERVE
OFFICERS.—(1)’’.
SEC. 503. WEARING OF INSIGNIA FOR HIGHER GRADE BEFORE PRO-
MOTION.
(a) AUTHORITY AND LIMITATIONS.—(1) Chapter 45 of title 10,
United States Code, is amended by adding at the end the following
new section:
‘‘§ 777. Wearing of insignia of higher grade before promotion
(frocking): authority; restrictions
‘‘(a) AUTHORITY.—An officer who has been selected for pro-
motion to the next higher grade may be authorized, under regula-
tions and policies of the Department of Defense and subject to
subsection (b), to wear the insignia for that next higher grade.
An officer who is so authorized to wear the insignia of the next
higher grade is said to be ‘frocked’ to that grade.
‘‘(b) RESTRICTIONS.—An officer may not be authorized to wear
the insignia for a grade as described in subsection (a) unless—
‘‘(1) the Senate has given its advice and consent to the
appointment of the officer to that grade; and
‘‘(2) the officer is serving in, or has received orders to
serve in, a position for which that grade is authorized.
‘‘(c) BENEFITS NOT TO BE CONSTRUED
AS ACCRUING.—(1)
Authority provided to an officer as described in subsection (a) to
wear the insignia of the next higher grade may not be construed
as conferring authority for that officer to—
‘‘(A) be paid the rate of pay provided for an officer in
that grade having the same number of years of service as
that officer; or
‘‘(B) assume any legal authority associated with that grade.
‘‘(2) The period for which an officer wears the insignia of the
next higher grade under such authority may not be taken into
account for any of the following purposes:
‘‘(A) Seniority in that grade.
H. R. 1530—111
‘‘(B) Time of service in that grade.
‘‘(d) LIMITATION ON NUMBER OF OFFICERS FROCKED TO SPECI-
FIED GRADES.—(1) The total number of colonels and Navy captains
on the active-duty list who are authorized as described in subsection
(a) to wear the insignia for the grade of brigadier general or rear
admiral (lower half), as the case may be, may not exceed the
following:
‘‘(A) During fiscal years 1996 and 1997, 75.
‘‘(B) During fiscal year 1998, 55.
‘‘(C) After fiscal year 1998, 35.
‘‘(2) The number of officers of an armed force on the active-
duty list who are authorized as described in subsection (a) to
wear the insignia for a grade to which a limitation on total number
applies under section 523(a) of this title for a fiscal year may
not exceed 1 percent of the total number provided for the officers
in that grade in that armed force in the administration of the
limitation under that section for that fiscal year.’’.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:
‘‘777. Wearing of insignia of higher grade before promotion (frocking): authority; re-
strictions.’’.
(b) TEMPORARY VARIATION OF LIMITATIONS ON NUMBERS OF
FROCKED OFFICERS.—In the administration of section 777(d)(2) of
title 10, United States Code (as added by subsection (a)), the percent
limitation applied under that section for fiscal year 1996 shall
be 2 percent (instead of 1 percent).
(c) REPORT.—Not later than September 1, 1996, the Secretary
of Defense shall submit to Congress a report providing the assess-
ment of the Secretary on the practice, known as ‘‘frocking’’, of
authorizing an officer who has been selected for promotion to the
next higher grade to wear the insignia for that next higher grade.
The report shall include the Secretary’s assessment of the appro-
priate number, if any, of colonels and Navy captains to be eligible
under section 777(d)(1) of title 10, United States Code (as added
by subsection (a)), to wear the insignia for the grade of brigadier
general or rear admiral (lower half).
SEC. 504. AUTHORITY TO EXTEND TRANSITION PERIOD FOR OFFI-
CERS SELECTED FOR EARLY RETIREMENT.
(a) SELECTIVE RETIREMENT
OF WARRANT OFFICERS.—Section
581 of title 10, United States Code, is amended by adding at
the end the following new subsection:
‘‘(e) The Secretary concerned may defer for not more than
90 days the retirement of an officer otherwise approved for early
retirement under this section in order to prevent a personal hard-
ship to the officer or for other humanitarian reasons. Any such
deferral shall be made on a case-by-case basis considering the
circumstances of the case of the particular officer concerned. The
authority of the Secretary to grant such a deferral may not be
delegated.’’.
(b) SELECTIVE EARLY RETIREMENT OF ACTIVE-DUTY OFFICERS.—
Section 638(b) of title 10, United States Code, is amended by adding
at the end the following new paragraph:
‘‘(3) The Secretary concerned may defer for not more than
90 days the retirement of an officer otherwise approved for early
retirement under this section or section 638a of this title in order
to prevent a personal hardship to the officer or for other humani-
H. R. 1530—112
tarian reasons. Any such deferral shall be made on a case-by-
case basis considering the circumstances of the case of the particular
officer concerned. The authority of the Secretary to grant such
a deferral may not be delegated.’’.
SEC. 505. ARMY OFFICER MANNING LEVELS.
(a) IN GENERAL.—(1) Chapter 331 of title 10, United States
Code, is amended by inserting after the table of sections the follow-
ing new section:
‘‘§ 3201. Officers on active duty: minimum strength based
on requirements
‘‘(a) The Secretary of the Army shall ensure that (beginning
with fiscal year 1999) the strength at the end of each fiscal year
of officers on active duty is sufficient to enable the Army to meet
at least that percentage of the programmed manpower structure
for officers for the active component of the Army that is provided
for in the most recent Defense Planning Guidance issued by the
Secretary of Defense.
‘‘(b) The number of officers on active duty shall be counted
for purposes of this section in the same manner as applies under
section 115(a)(1) of this title.
‘‘(c) In this section:
‘‘(1) The term ‘programmed manpower structure’ means
the aggregation of billets describing the full manpower require-
ments for units and organizations in the programmed force
structure.
‘‘(2) The term ‘programmed force structure’ means the set
of units and organizations that exist in the current year and
that is planned to exist in each future year under the then-
current Future-Years Defense Program.’’.
(2) The table of sections at the beginning of such chapter
is amended by inserting after ‘‘Sec.’’ the following new item:
‘‘3201. Officers on active duty: minimum strength based on requirements.’’.
(b) ASSISTANCE IN ACCOMPLISHING REQUIREMENT.—The Secretary
of Defense shall provide to the Army sufficient personnel and finan-
cial resources to enable the Army to meet the requirement specified
in section 3201 of title 10, United States Code, as added by sub-
section (a).
SEC. 506. AUTHORITY FOR MEDICAL DEPARTMENT OFFICERS OTHER
THAN PHYSICIANS TO BE APPOINTED AS SURGEON GEN-
ERAL.
(a) SURGEON GENERAL OF THE ARMY.—The third sentence of
section 3036(b) of title 10, United States Code, is amended by
inserting after ‘‘The Surgeon General’’ the following: ‘‘may be
appointed from officers in any corps of the Army Medical Depart-
ment and’’.
(b) SURGEON GENERAL OF THE NAVY.—Section 5137 of such
title is amended—
(1) in the first sentence of subsection (a), by striking out
‘‘in the Medical Corps’’ and inserting in lieu thereof ‘‘in any
corps of the Navy Medical Department’’; and
(2) in subsection (b), by striking out ‘‘in the Medical Corps’’
and inserting in lieu thereof ‘‘who is qualified to be the Chief
of the Bureau of Medicine and Surgery’’.
H. R. 1530—113
(c) SURGEON GENERAL OF THE AIR FORCE.—The first sentence
of section 8036 of such title is amended by striking out ‘‘designated
as medical officers under section 8067(a) of this title’’ and inserting
in lieu thereof ‘‘in the Air Force medical department’’.
SEC. 507. DEPUTY JUDGE ADVOCATE GENERAL OF THE AIR FORCE.
(a) TENURE AND GRADE OF DEPUTY JUDGE ADVOCATE GEN-
ERAL.—Section 8037(d)(1) of such title is amended—
(1) in the second sentence, by striking out ‘‘two years’’
and inserting in lieu thereof ‘‘four years’’; and
(2) by striking out the last sentence and inserting in lieu
thereof the following: ‘‘An officer appointed as Deputy Judge
Advocate General who holds a lower regular grade shall be
appointed in the regular grade of major general.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) apply to any appointment to the position of Deputy Judge
Advocate General of the Air Force that is made after the date
of the enactment of this Act.
SEC. 508. AUTHORITY FOR TEMPORARY PROMOTIONS FOR CERTAIN
NAVY LIEUTENANTS WITH CRITICAL SKILLS.
(a) EXTENSION OF AUTHORITY.—Subsection (f) of section 5721
of title 10, United States Code, is amended by striking out ‘‘Septem-
ber 30, 1995’’ and inserting in lieu thereof ‘‘September 30, 1996’’.
(b) LIMITATION.—Such section is further amended—
(1) by redesignating subsection (f), as amended by sub-
section (a), as subsection (g); and
(2) by inserting after subsection (e) the following new sub-
section (f):
‘‘(f) LIMITATION ON NUMBER OF ELIGIBLE POSITIONS.—(1) An
appointment under this section may only be made for service in
a position designated by the Secretary of the Navy for purposes
of this section. The number of positions so designated may not
exceed 325.
‘‘(2) Whenever the Secretary makes a change to the positions
designated under paragraph (1), the Secretary shall submit notice
of the change in writing to Congress.’’.
(c) REPORT.—Not later than April 1, 1996, the Secretary of
Defense shall submit to Congress a report providing the Secretary’s
assessment of that continuing need for the promotion authority
under section 5721 of title 10, United States Code. The Secretary
shall include in the report the following:
(1) The nature and grade structure of the positions for
which such authority has been used.
(2) The cause or causes of the reported chronic shortages
of qualified personnel in the required grade to fill the positions
specified under paragraph (1).
(3) The reasons for the perceived inadequacy of the officer
promotion system (including ‘‘below-the-zone’’ selections) to pro-
vide sufficient officers in the required grade to fill those posi-
tions.
(4) The extent to which a bonus program or some other
program would be a more appropriate means of resolving the
reported chronic shortages in engineering positions.
(d) CLERICAL AMENDMENTS.—Section 5721 of title 10, United
States Code, is amended as follows:
H. R. 1530—114
(1) Subsection (a) is amended by inserting ‘‘PROMOTION
AUTHORITY
FOR CERTAIN OFFICER WITH CRITICAL SKILLS.—
’’ after ‘‘(a)’’.
(2) Subsection (b) is amended by inserting ‘‘STATUS
OF
OFFICERS APPOINTED.—’’ after ‘‘(b)’’.
(3) Subsection (c) is amended by inserting ‘‘BOARD REC-
OMMENDATION REQUIRED.—’’ after ‘‘(c)’’.
(4) Subsection (d) is amended by inserting ‘‘ACCEPTANCE
AND EFFECTIVE DATE OF APPOINTMENT.—’’ after ‘‘(d)’’.
(5) Subsection (e) is amended by inserting ‘‘TERMINATION
OF APPOINTMENT.—’’ after ‘‘(e)’’.
(6) Subsection (g), as redesignated by subsection (b)(1),
is amended by inserting ‘‘TERMINATION
OF
APPOINTMENT
AUTHORITY.—’’ after ‘‘(g)’’.
(e) EFFECTIVE DATE.—Subsection (f) of section 5721 of title
10, United States Code, as added by subsection (b)(2), shall take
effect at the end of the 30-day period beginning on the date of
the enactment of this Act and shall apply to any appointment
under that section after the end of such period.
SEC. 509. RETIREMENT FOR YEARS OF SERVICE OF DIRECTORS OF
ADMISSIONS OF MILITARY AND AIR FORCE ACADEMIES.
(a) MILITARY ACADEMY.—(1) Section 3920 of title 10, United
States Code, is amended to read as follows:
‘‘§ 3920. More than thirty years: permanent professors and
the Director of Admissions of the United States
Military Academy
‘‘(a) The Secretary of the Army may retire an officer specified
in subsection (b) who has more than 30 years of service as a
commissioned officer.
‘‘(b) Subsection (a) applies in the case of the following officers:
‘‘(1) Any permanent professor of the United States Military
Academy.
‘‘(2) The Director of Admissions of the United States Mili-
tary Academy.’’.
(2) The item relating to such section in the table of sections
at the beginning of chapter 367 of such title is amended to read
as follows:
‘‘3920. More than thirty years: permanent professors and the Director of Admissions
of the United States Military Academy.’’.
(b) AIR FORCE ACADEMY.—(1) Section 8920 of title 10, United
States Code, is amended to read as follows:
‘‘§ 8920. More than thirty years: permanent professors and
the Director of Admissions of the United States
Air Force Academy
‘‘(a) The Secretary of the Air Force may retire an officer speci-
fied in subsection (b) who has more than 30 years of service as
a commissioned officer.
‘‘(b) Subsection (a) applies in the case of the following officers:
‘‘(1) Any permanent professor of the United States Air
Force Academy.
‘‘(2) The Director of Admissions of the United States Air
Force Academy.’’.
H. R. 1530—115
(2) The item relating to such section in the table of sections
at the beginning of chapter 867 of such title is amended to read
as follows:
‘‘8920. More than thirty years: permanent professors and the Director of Admissions
of the United States Air Force Academy.’’.
Subtitle B—Matters Relating to Reserve
Components
SEC. 511. EXTENSION OF CERTAIN RESERVE OFFICER MANAGEMENT
AUTHORITIES.
(a) GRADE DETERMINATION AUTHORITY FOR CERTAIN RESERVE
MEDICAL OFFICERS.—Sections 3359(b) and 8359(b) of title 10,
United States Code, are each amended by striking out ‘‘September
30, 1995’’ and inserting in lieu thereof ‘‘September 30, 1996’’.
(b) PROMOTION AUTHORITY
FOR CERTAIN RESERVE OFFICERS
SERVING ON ACTIVE DUTY.—Sections 3380(d) and 8380(d) of title
10, United States Code, are each amended by striking out ‘‘Septem-
ber 30, 1995’’ and inserting in lieu thereof ‘‘September 30, 1996’’.
(c) YEARS
OF SERVICE
FOR MANDATORY TRANSFER
TO
THE
RETIRED RESERVE.—Section 1016(d) of the Department of Defense
Authorization Act, 1984 (10 U.S.C. 3360) is amended by striking
out ‘‘September 30, 1995’’ and inserting in lieu thereof ‘‘September
30, 1996’’.
SEC. 512. MOBILIZATION INCOME INSURANCE PROGRAM FOR MEM-
BERS OF READY RESERVE.
(a) ESTABLISHMENT OF PROGRAM.—(1) Subtitle E of title 10,
United States Code, is amended by inserting after chapter 1213
the following new chapter:
‘‘CHAPTER 1214—READY RESERVE MOBILIZATION
INCOME INSURANCE
‘‘Sec.
‘‘12521. Definitions.
‘‘12522. Establishment of insurance program.
‘‘12523. Risk insured.
‘‘12524. Enrollment and election of benefits.
‘‘12525. Benefit amounts.
‘‘12526. Premiums.
‘‘12527. Payment of premiums.
‘‘12528. Reserve Mobilization Income Insurance Fund.
‘‘12529. Board of Actuaries.
‘‘12530. Payment of benefits.
‘‘12531. Purchase of insurance.
‘‘12532. Termination for nonpayment of premiums; forfeiture.
‘‘§ 12521. Definitions
‘‘In this chapter:
‘‘(1) The term ‘insurance program’ means the Ready Reserve
Mobilization Income Insurance Program established under sec-
tion 12522 of this title.
‘‘(2) The term ‘covered service’ means active duty performed
by a member of a reserve component under an order to active
duty for a period of more than 30 days which specifies that
the member’s service—
H. R. 1530—116
‘‘(A) is in support of an operational mission for which
members of the reserve components have been ordered
to active duty without their consent; or
‘‘(B) is in support of forces activated during a period
of war declared by Congress or a period of national emer-
gency declared by the President or Congress.
‘‘(3) The term ‘insured member’ means a member of the
Ready Reserve who is enrolled for coverage under the insurance
program in accordance with section 12524 of this title.
‘‘(4) The term ‘Secretary’ means the Secretary of Defense.
‘‘(5) The term ‘Department’ means the Department of
Defense.
‘‘(6) The term ‘Board of Actuaries’ means the Department
of Defense Education Benefits Board of Actuaries referred to
in section 2006(e)(1) of this title.
‘‘(7) The term ‘Fund’ means the Reserve Mobilization
Income Insurance Fund established by section 12528(a) of this
title.
‘‘§ 12522. Establishment of insurance program
‘‘(a) ESTABLISHMENT.—The Secretary shall establish for mem-
bers of the Ready Reserve (including the Coast Guard Reserve)
an insurance program to be known as the ‘Ready Reserve Mobiliza-
tion Income Insurance Program’.
‘‘(b) 
ADMINISTRATION.—The 
insurance 
program 
shall 
be
administered by the Secretary. The Secretary may prescribe in
regulations such rules, procedures, and policies as the Secretary
considers necessary or appropriate to carry out the insurance pro-
gram.
‘‘(c) AGREEMENT WITH SECRETARY OF TRANSPORTATION.—The
Secretary and the Secretary of Transportation shall enter into an
agreement with respect to the administration of the insurance
program for the Coast Guard Reserve.
‘‘§ 12523. Risk insured
‘‘(a) IN GENERAL.—The insurance program shall insure mem-
bers of the Ready Reserve against the risk of being ordered into
covered service.
‘‘(b) ENTITLEMENT
TO
BENEFITS.—(1) An insured member
ordered into covered service shall be entitled to payment of a
benefit for each month (and fraction thereof) of covered service
that exceeds 30 days of covered service, except that no member
may be paid under the insurance program for more than 12 months
of covered service served during any period of 18 consecutive
months.
‘‘(2) Payment shall be based solely on the insured status of
a member and on the period of covered service served by the
member. Proof of loss of income or of expenses incurred as a
result of covered service may not be required.
‘‘§ 12524. Enrollment and election of benefits
‘‘(a) ENROLLMENT.—(1) Except as provided in subsection (f),
upon first becoming a member of the Ready Reserve, a member
shall be automatically enrolled for coverage under the insurance
program. An automatic enrollment of a member shall be void if
within 60 days after first becoming a member of the Ready Reserve
H. R. 1530—117
the member declines insurance under the program in accordance
with the regulations prescribed by the Secretary.
‘‘(2) Promptly after the insurance program is established, the
Secretary shall offer to members of the reserve components who
are then members of the Ready Reserve (other than members
ineligible under subsection (f)) an opportunity to enroll for coverage
under the insurance program. A member who fails to enroll within
60 days after being offered the opportunity shall be considered
as having declined to be insured under the program.
‘‘(3) A member of the Ready Reserve ineligible to enroll under
subsection (f) shall be afforded an opportunity to enroll upon being
released from active duty in accordance with regulations prescribed
by the Secretary if the member has not previously had the oppor-
tunity to be enrolled under paragraph (1) or (2). A member who
fails to enroll within 60 days after being afforded that opportunity
shall be considered as having declined to be insured under the
program.
‘‘(b) ELECTION OF BENEFIT AMOUNT.—The amount of a mem-
ber’s monthly benefit under an enrollment shall be the basic benefit
under subsection (a) of section 12525 of this title unless the member
elects a different benefit under subsection (b) of such section within
60 days after first becoming a member of the Ready Reserve or
within 60 days after being offered the opportunity to enroll, as
the case may be.
‘‘(c) ELECTIONS IRREVOCABLE.—(1) An election to decline insur-
ance pursuant to paragraph (1) or (2) of subsection (a) is irrevocable.
‘‘(2) The amount of coverage may not be increased after enroll-
ment.
‘‘(d) ELECTION TO TERMINATE.—A member may terminate an
enrollment at any time.
‘‘(e) INFORMATION TO BE FURNISHED.—The Secretary shall
ensure that members referred to in subsection (a) are given a
written explanation of the insurance program and are advised that
they have the right to decline to be insured and, if not declined,
to elect coverage for a reduced benefit or an enhanced benefit
under subsection (b).
‘‘(f) MEMBERS INELIGIBLE TO ENROLL.—Members of the Ready
Reserve serving on active duty (or full-time National Guard duty)
are not eligible to enroll for coverage under the insurance program.
The Secretary may define any additional category of members of
the Ready Reserve to be excluded from eligibility to purchase insur-
ance under this chapter.
‘‘§ 12525. Benefit amounts
‘‘(a) BASIC BENEFIT.—The basic benefit for an insured member
under the insurance program is $1,000 per month (as adjusted
under subsection (d)).
‘‘(b) REDUCED AND ENHANCED BENEFITS.—Under the regula-
tions prescribed by the Secretary, a person enrolled for coverage
under the insurance program may elect—
‘‘(1) a reduced coverage benefit equal to one-half the amount
of the basic benefit; or
‘‘(2) an enhanced benefit in the amount of $1,500, $2,000,
$2,500, $3,000, $3,500, $4,000, $4,500, or $5,000 per month
(as adjusted under subsection (d)).
‘‘(c) AMOUNT FOR PARTIAL MONTH.—The amount of insurance
payable to an insured member for any period of covered service
H. R. 1530—118
that is less than one month shall be determined by multiplying
1⁄30 of the monthly benefit rate for the member by the number
of days of the covered service served by the member during such
period.
‘‘(d) ADJUSTMENT OF AMOUNTS.—(1) The Secretary shall deter-
mine annually the effect of inflation on benefits and shall adjust
the amounts set forth in subsections (a) and (b)(2) to maintain
the constant dollar value of the benefit.
‘‘(2) If the amount of a benefit as adjusted under paragraph
(1) is not evenly divisible by $10, the amount shall be rounded
to the nearest multiple of $10, except that an amount evenly divis-
ible by $5 but not by $10 shall be rounded to the next lower
amount that is evenly divisible by $10.
‘‘§ 12526. Premiums
‘‘(a) ESTABLISHMENT OF RATES.—(1) The Secretary, in consulta-
tion with the Board of Actuaries, shall prescribe the premium
rates for insurance under the insurance program.
‘‘(2) The Secretary shall prescribe a fixed premium rate for
each $1,000 of monthly insurance benefit. The premium amount
shall be equal to the share of the cost attributable to insuring
the member and shall be the same for all members of the Ready
Reserve who are insured under the insurance program for the
same benefit amount. The Secretary shall prescribe the rate on
the basis of the best available estimate of risk and financial expo-
sure, levels of subscription by members, and other relevant factors.
‘‘(b) LEVEL PREMIUMS.—The premium rate prescribed for the
first year of insurance coverage of an insured member shall be
continued without change for subsequent years of insurance cov-
erage, except that the Secretary, after consultation with the Board
of Actuaries, may adjust the premium rate in order to fund inflation-
adjusted benefit increases on an actuarially sound basis.
‘‘§ 12527. Payment of premiums
‘‘(a) METHODS
OF PAYMENT.—(1) The monthly premium for
coverage of a member under the insurance program shall be
deducted and withheld from the insured member’s pay for each
month.
‘‘(2) An insured member who does not receive pay on a monthly
basis shall pay the Secretary directly the premium amount
applicable for the level of benefits for which the member is insured.
‘‘(b) ADVANCE PAY
FOR PREMIUM.—The Secretary concerned
may advance to an insured member the amount equal to the first
insurance premium payment due under this chapter. The advance
may be paid out of appropriations for military pay. An advance
to a member shall be collected from the member either by deducting
and withholding the amount from basic pay payable for the member
or by collecting it from the member directly. No disbursing or
certifying officer shall be responsible for any loss resulting from
an advance under this subsection.
‘‘(c) PREMIUMS TO BE DEPOSITED IN FUND.—Premium amounts
deducted and withheld from the pay of insured members and pre-
mium amounts paid directly to the Secretary shall be credited
monthly to the Fund.
H. R. 1530—119
‘‘§ 12528. Reserve Mobilization Income Insurance Fund
‘‘(a) ESTABLISHMENT.—There is established on the books of the
Treasury a fund to be known as the ‘Reserve Mobilization Income
Insurance Fund’, which shall be administered by the Secretary
of the Treasury. The Fund shall be used for the accumulation
of funds in order to finance the liabilities of the insurance program
on an actuarially sound basis.
‘‘(b) ASSETS OF FUND.—There shall be deposited into the Fund
the following:
‘‘(1) Premiums paid under section 12527 of this title.
‘‘(2) Any amount appropriated to the Fund.
‘‘(3) Any return on investment of the assets of the Fund.
‘‘(c) AVAILABILITY.—Amounts in the Fund shall be available
for paying insurance benefits under the insurance program.
‘‘(d) INVESTMENT OF ASSETS OF FUND.—The Secretary of the
Treasury shall invest such portion of the Fund as is not in the
judgment of the Secretary of Defense required to meet current
liabilities. Such investments shall be in public debt securities with
maturities suitable to the needs of the Fund, as determined by
the Secretary of Defense, and bearing interest at rates determined
by the Secretary of the Treasury, taking into consideration current
market yields on outstanding marketable obligations of the United
States of comparable maturities. The income on such investments
shall be credited to the Fund.
‘‘(e) ANNUAL ACCOUNTING.—At the beginning of each fiscal year,
the Secretary, in consultation with the Board of Actuaries and
the Secretary of the Treasury, shall determine the following:
‘‘(1) The projected amount of the premiums to be collected,
investment earnings to be received, and any transfers or appro-
priations to be made for the Fund for that fiscal year.
‘‘(2) The amount for that fiscal year of any cumulative
unfunded liability (including any negative amount or any gain
to the Fund) resulting from payments of benefits.
‘‘(3) The amount for that fiscal year (including any negative
amount) of any cumulative actuarial gain or loss to the Fund.
‘‘§ 12529. Board of Actuaries
‘‘(a) ACTUARIAL RESPONSIBILITY.—The Board of Actuaries shall
have the actuarial responsibility for the insurance program.
‘‘(b) VALUATIONS AND PREMIUM RECOMMENDATIONS.—The Board
of Actuaries shall carry out periodic actuarial valuations of the
benefits under the insurance program and determine a premium
rate methodology for the Secretary to use in setting premium rates
for the insurance program. The Board shall conduct the first valu-
ation and determine a premium rate methodology not later than
six months after the insurance program is established.
‘‘(c) EFFECTS OF CHANGED BENEFITS.—If at the time of any
actuarial valuation under subsection (b) there has been a change
in benefits under the insurance program that has been made since
the last such valuation and such change in benefits increases or
decreases the present value of amounts payable from the Fund,
the Board of Actuaries shall determine a premium rate methodol-
ogy, and recommend to the Secretary a premium schedule, for
the liquidation of any liability (or actuarial gain to the Fund)
resulting from such change and any previous such changes so
that the present value of the sum of the scheduled premium pay-
ments (or reduction in payments that would otherwise be made)
H. R. 1530—120
equals the cumulative increase (or decrease) in the present value
of such benefits.
‘‘(d) ACTUARIAL GAINS OR LOSSES.—If at the time of any such
valuation the Board of Actuaries determines that there has been
an actuarial gain or loss to the Fund as a result of changes in
actuarial assumptions since the last valuation or as a result of
any differences, between actual and expected experience since the
last valuation, the Board shall recommend to the Secretary a pre-
mium rate schedule for the amortization of the cumulative gain
or loss to the Fund resulting from such changes in assumptions
and any previous such changes in assumptions or from the dif-
ferences in actual and expected experience, respectively, through
an increase or decrease in the payments that would otherwise
be made to the Fund.
‘‘(e) INSUFFICIENT ASSETS.—If at any time liabilities of the
Fund exceed assets of the Fund as a result of members of the
Ready Reserve being ordered to active duty as described in section
12521(2) of this title, and funds are unavailable to pay benefits
completely, the Secretary shall request the President to submit
to Congress a request for a special appropriation to cover the
unfunded liability. If appropriations are not made to cover an
unfunded liability in any fiscal year, the Secretary shall reduce
the amount of the benefits paid under the insurance program to
a total amount that does not exceed the assets of the Fund expected
to accrue by the end of such fiscal year. Benefits that cannot
be paid because of such a reduction shall be deferred and may
be paid only after and to the extent that additional funds become
available.
‘‘(f) DEFINITION OF PRESENT VALUE.—The Board of Actuaries
shall define the term ‘present value’ for purposes of this subsection.
‘‘§ 12530. Payment of benefits
‘‘(a) COMMENCEMENT OF PAYMENT.—An insured member who
serves in excess of 30 days of covered service shall be paid the
amount to which such member is entitled on a monthly basis
beginning not later than one month after the 30th day of covered
service.
‘‘(b) METHOD OF PAYMENT.—The Secretary shall prescribe in
the regulations the manner in which payments shall be made
to the member or to a person designated in accordance with sub-
section (c).
‘‘(c) DESIGNATED RECIPIENTS.—(1) A member may designate
in writing another person (including a spouse, parent, or other
person with an insurable interest, as determined in accordance
with the regulations prescribed by the Secretary) to receive pay-
ments of insurance benefits under the insurance program.
‘‘(2) A member may direct that payments of insurance benefits
for a person designated under paragraph (1) be deposited with
a bank or other financial institution to the credit of the designated
person.
‘‘(d) RECIPIENTS IN EVENT OF DEATH OF INSURED MEMBER.—
Any insurance payable under the insurance program on account
of a deceased member’s period of covered service shall be paid,
upon the establishment of a valid claim, to the beneficiary or
beneficiaries which the deceased member designated in writing.
If no such designation has been made, the amount shall be payable
in accordance with the laws of the State of the member’s domicile.
H. R. 1530—121
‘‘§ 12531. Purchase of insurance
‘‘(a) PURCHASE AUTHORIZED.—The Secretary may, instead of
or in addition to underwriting the insurance program through the
Fund, purchase from one or more insurance companies a policy
or policies of group insurance in order to provide the benefits
required under this chapter. The Secretary may waive any require-
ment for full and open competition in order to purchase an insurance
policy under this subsection.
‘‘(b) ELIGIBLE INSURERS.—In order to be eligible to sell insur-
ance to the Secretary for purposes of subsection (a), an insurance
company shall—
‘‘(1) be licensed to issue insurance in each of the 50 States
and in the District of Columbia; and
‘‘(2) as of the most recent December 31 for which informa-
tion is available to the Secretary, have in effect at least one
percent of the total amount of insurance that all such insurance
companies have in effect in the United States.
‘‘(c) ADMINISTRATIVE PROVISIONS.—(1) An insurance company
that issues a policy for purposes of subsection (a) shall establish
an administrative office at a place and under a name designated
by the Secretary.
‘‘(2) For the purposes of carrying out this chapter, the Secretary
may use the facilities and services of any insurance company issuing
any policy for purposes of subsection (a), may designate one such
company as the representative of the other companies for such
purposes, and may contract to pay a reasonable fee to the designated
company for its services.
‘‘(d) REINSURANCE.—The Secretary shall arrange with each
insurance company issuing any policy for purposes of subsection
(a) to reinsure, under conditions approved by the Secretary, portions
of the total amount of the insurance under such policy or policies
with such other insurance companies (which meet qualifying criteria
prescribed by the Secretary) as may elect to participate in such
reinsurance.
‘‘(e) TERMINATION.—The Secretary may at any time terminate
any policy purchased under this section.
‘‘§ 12532. Termination for nonpayment of premiums; forfeit-
ure
‘‘(a) TERMINATION FOR NONPAYMENT.—The coverage of a mem-
ber under the insurance program shall terminate without prior
notice upon a failure of the member to make required monthly
payments of premiums for two consecutive months. The Secretary
may provide in the regulations for reinstatement of insurance cov-
erage terminated under this subsection.
‘‘(b) FORFEITURE.—Any person convicted of mutiny, treason,
spying, or desertion, or who refuses to perform service in the armed
forces or refuses to wear the uniform of any of the armed forces
shall forfeit all rights to insurance under this chapter.’’.
(2) The tables of chapters at the beginning of subtitle E, and
at the beginning of part II of subtitle E, of title 10, United States
Code, are amended by inserting after the item relating to chapter
1213 the following new item:
‘‘1214. Ready Reserve Mobilization Income Insurance ........................................12521’’.
(b) EFFECTIVE DATE.—The insurance program provided for in
chapter 1214 of title 10, United States Code, as added by subsection
(a), and the requirement for deductions and contributions for that
H. R. 1530—122
program shall take effect on September 30, 1996, or on any earlier
date declared by the Secretary and published in the Federal Reg-
ister.
SEC. 513. MILITARY TECHNICIAN FULL-TIME SUPPORT PROGRAM FOR
ARMY AND AIR FORCE RESERVE COMPONENTS.
(a) 
REQUIREMENT
OF
ANNUAL
AUTHORIZATION
OF
END
STRENGTH.—(1) Section 115 of title 10, United States Code, is
amended by adding at the end the following new subsection:
‘‘(g) Congress shall authorize for each fiscal year the end
strength for military technicians for each reserve component of
the Army and Air Force. Funds available to the Department of
Defense for any fiscal year may not be used for the pay of a
military technician during that fiscal year unless the technician
fills a position that is within the number of such positions author-
ized by law for that fiscal year for the reserve component of that
technician. This subsection applies without regard to section 129
of this title.’’.
(2) The amendment made by paragraph (1) does not apply
with respect to fiscal year 1995.
(b) AUTHORIZATION FOR FISCAL YEARS 1996 AND 1997.—For
each of fiscal years 1996 and 1997, the minimum number of military
technicians, as of the last day of that fiscal year, for the Army
and the Air Force (notwithstanding section 129 of title 10, United
States Code) shall be the following:
(1) Army National Guard, 25,500.
(2) Army Reserve, 6,630.
(3) Air National Guard, 22,906.
(4) Air Force Reserve, 9,802.
(c) ADMINISTRATION OF MILITARY TECHNICIAN PROGRAM.—(1)
Chapter 1007 of title 10, United States Code, is amended by adding
at the end the following new section:
‘‘§ 10216. Military technicians
‘‘(a) PRIORITY FOR MANAGEMENT OF MILITARY TECHNICIANS.—
(1) As a basis for making the annual request to Congress pursuant
to section 115 of this title for authorization of end strengths for
military technicians of the Army and Air Force reserve components,
the Secretary of Defense shall give priority to supporting authoriza-
tions for dual status military technicians in the following high-
priority units and organizations:
‘‘(A) Units of the Selected Reserve that are scheduled to
deploy no later than 90 days after mobilization.
‘‘(B) Units of the Selected Reserve that are or will deploy
to relieve active duty peacetime operations tempo.
‘‘(C) Those organizations with the primary mission of
providing direct support surface and aviation maintenance for
the reserve components of the Army and Air Force, to the
extent that the military technicians in such units would
mobilize and deploy in a skill that is compatible with their
civilian position skill.
‘‘(2) For each fiscal year, the Secretary of Defense shall, for
the high-priority units and organizations referred to in paragraph
(1), seek to achieve a programmed manning level for military techni-
cians that is not less than 90 percent of the programmed manpower
structure for those units and organizations for military technicians
for that fiscal year.
H. R. 1530—123
‘‘(3) Military technician authorizations and personnel in high-
priority units and organizations specified in paragraph (1) shall
be exempt from any requirement (imposed by law or otherwise)
for reductions in Department of Defense civilian personnel and
shall only be reduced as part of military force structure reductions.
‘‘(b) DUAL-STATUS REQUIREMENT.—The Secretary of Defense
shall require the Secretary of the Army and the Secretary of the
Air Force to establish as a condition of employment for each individ-
ual who is hired after the date of the enactment of this section
as a military technician that the individual maintain membership
in the Selected Reserve (so as to be a so-called ‘dual-status’ techni-
cian) and shall require that the civilian and military position skill
requirements of dual-status military technicians be compatible. No
Department of Defense funds may be spent for compensation for
any military technician hired after the date of the enactment of
this section who is not a member of the Selected Reserve, except
that compensation may be paid for up to six months following
loss of membership in the Selected Reserve if such loss of member-
ship was not due to the failure to meet military standards.’’.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:
‘‘10216. Military technicians.’’.
(d) REVIEW
OF RESERVE COMPONENT MANAGEMENT HEAD-
QUARTERS.—(1) The Secretary of Defense shall, within six months
after the date of the enactment of this Act, undertake steps to
reduce, consolidate, and streamline management headquarters oper-
ations of the reserve components. As part of those steps, the Sec-
retary shall identify those military technicians positions in such
headquarters operations that are excess to the requirements of
those headquarters.
(2) Of the military technicians positions that are identified
under paragraph (1), the Secretary shall reallocate up to 95 percent
of the annual funding required to support those positions for the
purpose of creating new positions or filling existing positions in
the high-priority units and activities specified in section 10216(a)
of title 10, United States Code, as added by subsection (c).
(e) ANNUAL DEFENSE MANPOWER REQUIREMENTS REPORT.—Sec-
tion 115a of title 10, United States Code, is amended by adding
at the end the following new subsection:
‘‘(h) In each such report, the Secretary shall include a separate
report on the Army and Air Force military technician programs.
The report shall include a presentation, shown by reserve compo-
nent and shown both as of the end of the preceding fiscal year
and for the next fiscal year, of the following:
‘‘(1) The number of military technicians required to be
employed (as specified in accordance with Department of
Defense procedures), the number authorized to be employed
under Department of Defense personnel procedures, and the
number actually employed.
‘‘(2) Within each of the numbers under paragraph (1)—
‘‘(A) the number applicable to a reserve component
management headquarter organization; and
‘‘(B) the number applicable to high-priority units and
organizations (as specified in section 10216(a) of this title).
‘‘(3) Within each of the numbers under paragraph (1), the
numbers of military technicians who are not themselves mem-
bers of a reserve component (so-called ‘single-status’ techni-
H. R. 1530—124
cians), with a further display of such numbers as specified
in paragraph (2).’’.
SEC. 514. REVISIONS TO ARMY GUARD COMBAT REFORM INITIATIVE
TO INCLUDE ARMY RESERVE UNDER CERTAIN PROVISIONS
AND MAKE CERTAIN REVISIONS.
(a) PRIOR ACTIVE DUTY PERSONNEL.—Section 1111 of the Army
National Guard Combat Readiness Reform Act of 1992 (title XI
of Public Law 102–484) is amended—
(1) in the section heading, by striking out the first three
words;
(2) by striking out subsections (a) and (b) and inserting
in lieu thereof the following:
‘‘(a) ADDITIONAL PRIOR ACTIVE DUTY OFFICERS.—The Secretary
of the Army shall increase the number of qualified prior active-
duty officers in the Army National Guard by providing a program
that permits the separation of officers on active duty with at least
two, but less than three, years of active service upon condition
that the officer is accepted for appointment in the Army National
Guard. The Secretary shall have a goal of having not fewer than
150 officers become members of the Army National Guard each
year under this section.
‘‘(b) ADDITIONAL PRIOR ACTIVE DUTY ENLISTED MEMBERS.—
The Secretary of the Army shall increase the number of qualified
prior active-duty enlisted members in the Army National Guard
through the use of enlistments as described in section 8020 of
the Department of Defense Appropriations Act, 1994 (Public Law
103–139). The Secretary shall enlist not fewer than 1,000 new
enlisted members each year under enlistments described in that
section.’’; and
(3) by striking out subsections (d) and (e).
(b) SERVICE IN THE SELECTED RESERVE IN LIEU OF ACTIVE
DUTY SERVICE FOR ROTC GRADUATES.—Section 1112(b) of such
Act (106 Stat. 2537) is amended by striking out ‘‘National Guard’’
before the period at the end and inserting in lieu thereof ‘‘Selected
Reserve’’.
(c) REVIEW OF OFFICER PROMOTIONS.—Section 1113 of such
Act (106 Stat. 2537) is amended—
(1) in subsection (a), by striking out ‘‘National Guard’’
both places it appears and inserting in lieu thereof ‘‘Selected
Reserve’’; and
(2) by striking out subsection (b) and inserting in lieu
thereof the following:
‘‘(b) COVERAGE
OF SELECTED RESERVE COMBAT
AND EARLY
DEPLOYING UNITS.—(1) Subsection (a) applies to officers in all units
of the Selected Reserve that are designated as combat units or
that are designated for deployment within 75 days of mobilization.
‘‘(2) Subsection (a) shall take effect with respect to officers
of the Army Reserve, and with respect to officers of the Army
National Guard in units not subject to subsection (a) as of the
date of the enactment of the National Defense Authorization Act
for Fiscal Year 1996, at the end of the 90-day period beginning
on such date of enactment.’’.
(d) INITIAL ENTRY TRAINING
AND NONDEPLOYABLE PERSON-
NEL.—Section 1115 of such Act (106 Stat. 2538) is amended—
H. R. 1530—125
(1) in subsections (a) and (b), by striking out ‘‘National
Guard’’ each place it appears and inserting in lieu thereof
‘‘Selected Reserve’’; and
(2) in subsection (c)—
(A) by striking out ‘‘a member of the Army National
Guard enters the National Guard’’ and inserting in lieu
thereof ‘‘a member of the Army Selected Reserve enters
the Army Selected Reserve’’; and
(B) by striking out ‘‘from the Army National Guard’’.
(e) 
ACCOUNTING
OF
MEMBERS
WHO
FAIL
PHYSICAL
DEPLOYABILITY STANDARDS.—Section 1116 of such Act (106 Stat.
2539) is amended by striking out ‘‘National Guard’’ each place
it appears and inserting in lieu thereof ‘‘Selected Reserve’’.
(f) USE OF COMBAT SIMULATORS.—Section 1120 of such Act
(106 Stat. 2539) is amended by inserting ‘‘and the Army Reserve’’
before the period at the end.
SEC. 515. ACTIVE DUTY ASSOCIATE UNIT RESPONSIBILITY.
(a) ASSOCIATE UNITS.—Subsection (a) of section 1131 of the
National Defense Authorization Act for Fiscal Year 1993 (Public
Law 102–484; 106 Stat. 2540) is amended to read as follows:
‘‘(a) ASSOCIATE
UNITS.—The Secretary of the Army shall
require—
‘‘(1) that each ground combat maneuver brigade of the
Army National Guard that (as determined by the Secretary)
is essential for the execution of the National Military Strategy
be associated with an active-duty combat unit; and
‘‘(2) that combat support and combat service support units
of the Army Selected Reserve that (as determined by the Sec-
retary) are essential for the execution of the National Military
Strategy be associated with active-duty units.’’.
(b) RESPONSIBILITIES.—Subsection (b) of such section is
amended—
(1) by striking out ‘‘National Guard combat unit’’ in the
matter preceding paragraph (1) and inserting in lieu thereof
‘‘National Guard unit or Army Selected Reserve unit that (as
determined by the Secretary under subsection (a)) is essential
for the execution of the National Military Strategy’’; and
(2) by striking out ‘‘of the National Guard unit’’ in para-
graphs (1), (2), (3), and (4) and inserting in lieu thereof ‘‘of
that unit’’.
SEC. 516. LEAVE 
FOR 
MEMBERS 
OF 
RESERVE 
COMPONENTS
PERFORMING PUBLIC SAFETY DUTY.
(a) ELECTION OF LEAVE TO BE CHARGED.—Subsection (b) of
section 6323 of title 5, United States Code, is amended by adding
at the end the following: ‘‘Upon the request of an employee, the
period for which an employee is absent to perform service described
in paragraph (2) may be charged to the employee’s accrued annual
leave or to compensatory time available to the employee instead
of being charged as leave to which the employee is entitled under
this subsection. The period of absence may not be charged to sick
leave.’’.
(b) PAY FOR PERIOD OF ABSENCE.—Section 5519 of such title
is amended by striking out ‘‘entitled to leave’’ and inserting in
lieu thereof ‘‘granted military leave’’.
H. R. 1530—126
SEC. 517. DEPARTMENT 
OF 
DEFENSE 
FUNDING 
FOR 
NATIONAL
GUARD PARTICIPATION IN JOINT DISASTER AND EMER-
GENCY ASSISTANCE EXERCISES.
Section 503(a) of title 32, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and
(2) by adding at the end the following:
‘‘(2) Paragraph (1) includes authority to provide for participation
of the National Guard in conjunction with the Army or the Air
Force, or both, in joint exercises for instruction to prepare the
National Guard for response to civil emergencies and disasters.’’.
Subtitle C—Decorations and Awards
SEC. 521. AWARD OF PURPLE HEART TO PERSONS WOUNDED WHILE
HELD AS PRISONERS OF WAR BEFORE APRIL 25, 1962.
(a) AWARD
OF PURPLE HEART.—For purposes of the award
of the Purple Heart, the Secretary concerned (as defined in section
101 of title 10, United States Code) shall treat a former prisoner
of war who was wounded before April 25, 1962, while held as
a prisoner of war (or while being taken captive) in the same manner
as a former prisoner of war who is wounded on or after that
date while held as a prisoner of war (or while being taken captive).
(b) STANDARDS FOR AWARD.—An award of the Purple Heart
under subsection (a) shall be made in accordance with the standards
in effect on the date of the enactment of this Act for the award
of the Purple Heart to persons wounded on or after April 25,
1962.
(c) ELIGIBLE FORMER PRISONERS OF WAR.—A person shall be
considered to be a former prisoner of war for purposes of this
section if the person is eligible for the prisoner-of-war medal under
section 1128 of title 10, United States Code.
SEC. 522. AUTHORITY TO AWARD DECORATIONS RECOGNIZING ACTS
OF VALOR PERFORMED IN COMBAT DURING THE VIETNAM
CONFLICT.
(a) FINDINGS.—Congress makes the following findings:
(1) The Ia Drang Valley (Pleiku) campaign, carried out
by the Armed Forces in the Ia Drang Valley of Vietnam from
October 23, 1965, to November 26, 1965, is illustrative of the
many battles during the Vietnam conflict which pitted forces
of the United States against North Vietnamese Army regulars
and Viet Cong in vicious fighting.
(2) Accounts of those battles that have been published
since the end of that conflict authoritatively document numer-
ous and repeated acts of extraordinary heroism, sacrifice, and
bravery on the part of members of the Armed Forces, many
of which have never been officially recognized.
(3) In some of those battles, United States military units
suffered substantial losses, with some units sustaining casual-
ties in excess of 50 percent.
(4) The incidence of heavy casualties throughout the Viet-
nam conflict inhibited the timely collection of comprehensive
and detailed information to support recommendations for
awards recognizing acts of heroism, sacrifice, and bravery.
(5) Subsequent requests to the Secretaries of the military
departments for review of award recommendations for such
H. R. 1530—127
acts have been denied because of restrictions in law and regula-
tions that require timely filing of such recommendations and
documented justification.
(6) Acts of heroism, sacrifice, and bravery performed in
combat by members of the Armed Forces deserve appropriate
and timely recognition by the people of the United States.
(7) It is appropriate to recognize acts of heroism, sacrifice,
or bravery that are belatedly, but properly, documented by
persons who witnessed those acts.
(b) WAIVER OF TIME LIMITATIONS FOR RECOMMENDATIONS FOR
AWARDS.—(1) Any decoration covered by paragraph (2) may be
awarded, without regard to any time limit imposed by law or
regulation for a recommendation for such award to any person
for actions by that person in the Southeast Asia theater of oper-
ations while serving on active duty during the Vietnam era. The
waiver of time limitations under this paragraph applies only in
the case of awards for acts of valor for which a request for consider-
ation is submitted under subsection (c).
(2) Paragraph (1) applies to any decoration (including any
device in lieu of a decoration) that, during or after the Vietnam
era and before the date of the enactment of this Act, was authorized
by law or under regulations of the Department of Defense or the
military department concerned to be awarded to members of the
Armed Forces for acts of valor.
(c) REVIEW OF REQUESTS FOR CONSIDERATION OF AWARDS.—
(1) The Secretary of each military department shall review each
request for consideration of award of a decoration described in
subsection (b) that are received by the Secretary during the one-
year period beginning on the date of enactment of this Act.
(2) The Secretaries shall begin the review within 30 days after
the date of the enactment of this Act and shall complete the review
of each request for consideration not later than one year after
the date on which the request is received.
(3) The Secretary may use the same process for carrying out
the review as the Secretary uses for reviewing other recommenda-
tions for award of decorations to members of the Armed Forces
under the Secretary’s jurisdiction for valorous acts.
(d) REPORT.—(1) Upon completing the review of each such
request under subsection (c), the Secretary shall submit a report
on the review to the Committee on Armed Services of the Senate
and the Committee on National Security of the House of Representa-
tives.
(2) The report shall include, with respect to each request for
consideration received, the following information:
(A) A summary of the request for consideration.
(B) The findings resulting from the review.
(C) The final action taken on the request for consideration.
(e) DEFINITION.—For purposes of this section:
(1) The term ‘‘Vietnam era’’ has the meaning given that
term in section 101 of title 38, United States Code.
(2) The term ‘‘active duty’’ has the meaning given that
term in section 101 of title 10, United States Code.
H. R. 1530—128
SEC. 523. MILITARY 
INTELLIGENCE 
PERSONNEL 
PREVENTED 
BY
SECRECY FROM BEING CONSIDERED FOR DECORATIONS
AND AWARDS.
(a) WAIVER ON RESTRICTIONS OF AWARDS.—(1) Any decoration
covered by paragraph (2) may be awarded, without regard to any
time limit imposed by law or regulation for a recommendation
for such award, to any person for an act, achievement, or service
that the person performed in carrying out military intelligence
duties during the period beginning on January 1, 1940, and ending
on December 31, 1990.
(2) Paragraph (1) applies to any decoration (including any
device in lieu of a decoration) that, during or after the period
described in paragraph (1) and before the date of the enactment
of this Act, was authorized by law or under the regulations of
the Department of Defense or the military department concerned
to be awarded to a person for an act, achievement, or service
performed by that person while serving on active duty.
(b) REVIEW OF REQUESTS FOR CONSIDERATION OF AWARDS.—
(1) The Secretary of each military department shall review each
request for consideration of award of a decoration described in
subsection (a) that is received by the Secretary during the one-
year period beginning on the date of the enactment of this Act.
(2) The Secretaries shall begin the review within 30 days after
the date of the enactment of this Act and shall complete the review
of each request for consideration not later than one year after
the date on which the request is received.
(3) The Secretary may use the same process for carrying out
the review as the Secretary uses for reviewing other recommenda-
tions for awarding decorations to members of the Armed Forces
under the Secretary’s jurisdiction for acts, achievements, or service.
(c) REPORT.—(1) Upon completing the review of each such
request under subsection (b), the Secretary shall submit a report
on the review to the Committee on Armed Services of the Senate
and the Committee on National Security of the House of Representa-
tives.
(2) The report shall include, with respect to each request for
consideration reviewed, the following information:
(A) A summary of the request for consideration.
(B) The findings resulting from the review.
(C) The final action taken on the request for consideration.
(D) Administrative or legislative recommendations to
improve award procedures with respect to military intelligence
personnel.
(d) DEFINITION.—For purposes of this section, the term ‘‘active
duty’’ has the meaning given such term in section 101 of title
10, United States Code.
SEC. 524. REVIEW REGARDING UPGRADING OF DISTINGUISHED-SERV-
ICE CROSSES AND NAVY CROSSES AWARDED TO ASIAN-
AMERICANS AND NATIVE AMERICAN PACIFIC ISLANDERS
FOR WORLD WAR II SERVICE.
(a) REVIEW REQUIRED.—(1) The Secretary of the Army shall
review the records relating to each award of the Distinguished-
Service Cross, and the Secretary of the Navy shall review the
records relating to each award of the Navy Cross, that was awarded
to an Asian-American or a Native American Pacific Islander with
respect to service as a member of the Armed Forces during World
H. R. 1530—129
War II. The purpose of the review shall be to determine whether
any such award should be upgraded to the Medal of Honor.
(2) If the Secretary concerned determines, based upon the
review under paragraph (1), that such an upgrade is appropriate
in the case of any person, the Secretary shall submit to the Presi-
dent a recommendation that the President award the Medal of
Honor to that person.
(b) WAIVER
OF TIME LIMITATIONS.—A Medal of Honor may
be awarded to a person referred to in subsection (a) in accordance
with a recommendation of the Secretary concerned under that sub-
section without regard to—
(1) section 3744, 6248, or 8744 of title 10, United States
Code, as applicable; and
(2) any regulation or other administrative restriction on—
(A) the time for awarding the Medal of Honor; or
(B) the awarding of the Medal of Honor for service
for which a Distinguished-Service Cross or Navy Cross
has been awarded.
(c) DEFINITION.—For purposes of this section, the term ‘‘Native
American Pacific Islander’’ means a Native Hawaiian and any other
Native American Pacific Islander within the meaning of the Native
American Programs Act of 1974 (42 U.S.C. 2991 et seq.).
SEC. 525. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL
BASED UPON SERVICE IN EL SALVADOR.
(a) IN GENERAL.—For the purpose of determining eligibility
of members and former members of the Armed Forces for the
Armed Forces Expeditionary Medal, the country of El Salvador
during the period beginning on January 1, 1981 and ending on
February 1, 1992, shall be treated as having been designated as
an area and a period of time in which members of the Armed
Forces participated in operations in significant numbers and other-
wise met the general requirements for the award of that medal.
(b) INDIVIDUAL DETERMINATION.—The Secretary of the military
department concerned shall determine whether individual members
or former members of the Armed Forces who served in El Salvador
during the period beginning on January 1, 1981 and ending on
February 1, 1992 meet the individual service requirements for
award of the Armed Forces Expeditionary Medal as established
in applicable regulations. Such determinations shall be made as
expeditiously as possible after the date of the enactment of this
Act.
SEC. 526. PROCEDURE FOR CONSIDERATION OF MILITARY DECORA-
TIONS NOT PREVIOUSLY SUBMITTED IN TIMELY FASHION.
(a) IN GENERAL.—Chapter 57 of title 10, United States Code,
is amended by adding at the end the following new section:
‘‘§ 1130. Consideration of proposals for decorations not pre-
viously submitted in timely fashion: procedures
for review and recommendation
‘‘(a) Upon request of a Member of Congress, the Secretary
concerned shall review a proposal for the award or presentation
of a decoration (or the upgrading of a decoration), either for an
individual or a unit, that is not otherwise authorized to be presented
or awarded due to limitations established by law or policy for
timely submission of a recommendation for such award or presen-
tation. Based upon such review, the Secretary shall make a deter-
H. R. 1530—130
mination as to the merits of approving the award or presentation
of the decoration and the other determinations necessary to comply
with subsection (b).
‘‘(b) Upon making a determination under subsection (a) as
to the merits of approving the award or presentation of the decora-
tion, the Secretary concerned shall submit to the Committee on
Armed Services of the Senate and the Committee on National
Security of the House of Representatives and to the requesting
member of Congress notice in writing of one of the following:
‘‘(1) The award or presentation of the decoration does not
warrant approval on the merits.
‘‘(2) The award or presentation of the decoration warrants
approval and a waiver by law of time restrictions prescribed
by law is recommended.
‘‘(3) The award or presentation of the decoration warrants
approval on the merits and has been approved as an exception
to policy.
‘‘(4) The award or presentation of the decoration warrants
approval on the merits, but a waiver of the time restrictions
prescribed by law or policy is not recommended.
A notice under paragraph (1) or (4) shall be accompanied by a
statement of the reasons for the decision of the Secretary.
‘‘(c) Determinations under this section regarding the award
or presentation of a decoration shall be made in accordance with
the same procedures that apply to the approval or disapproval
of the award or presentation of a decoration when a recommendation
for such award or presentation is submitted in a timely manner
as prescribed by law or regulation.
‘‘(d) In this section:
‘‘(1) The term ‘Member of Congress’ means—
‘‘(A) a Senator; or
‘‘(B) a Representative in, or a Delegate or Resident
Commissioner to, Congress.
‘‘(2) The term ‘decoration’ means any decoration or award
that may be presented or awarded to a member or unit of
the armed forces.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following
new item:
‘‘1130. Consideration of proposals for decorations not previously submitted in timely
fashion: procedures for review and recommendation.’’.
Subtitle D—Officer Education Programs
PART I—SERVICE ACADEMIES
SEC. 531. REVISION OF SERVICE OBLIGATION FOR GRADUATES OF
THE SERVICE ACADEMIES.
(a) MILITARY
ACADEMY.—Section 4348(a)(2)(B) of title 10,
United States Code, is amended by striking out ‘‘six years’’ and
inserting in lieu thereof ‘‘five years’’.
(b) NAVAL ACADEMY.—Section 6959(a)(2)(B) of such title is
amended by striking out ‘‘six years’’ and inserting in lieu thereof
‘‘five years’’.
(c) AIR FORCE ACADEMY.—Section 9348(a)(2)(B) of such title
is amended by striking out ‘‘six years’’ and inserting in lieu thereof
‘‘five years’’.
H. R. 1530—131
(d) REQUIREMENT FOR REVIEW AND REPORT.—(1) The Secretary
of Defense shall review the effects that each of various periods
of obligated active duty service for graduates of the United States
Military Academy, the United States Naval Academy, and the
United States Air Force Academy would have on the number and
quality of the eligible and qualified applicants seeking appointment
to such academies.
(2) Not later than April 1, 1996, the Secretary shall submit
to the Committee on Armed Services of the Senate and the Commit-
tee on National Security of the House of Representatives a report
on the Secretary’s findings under the review, together with any
recommended legislation regarding the minimum periods of obli-
gated active duty service for graduates of the United States Military
Academy, the United States Naval Academy, and the United States
Air Force Academy.
(e) APPLICABILITY.—The amendments made by this section
apply to persons first admitted to the United States Military Acad-
emy, United States Naval Academy, and United States Air Force
Academy after December 31, 1991.
SEC. 532. NOMINATIONS TO SERVICE ACADEMIES FROM COMMON-
WEALTH OF THE NORTHERN MARIANAS ISLANDS.
(a) MILITARY ACADEMY.—Section 4342(a) of title 10, United
States Code, is amended by inserting after paragraph (9) the follow-
ing new paragraph:
‘‘(10) One cadet from the Commonwealth of the Northern
Marianas Islands, nominated by the resident representative
from the commonwealth.’’.
(b) NAVAL ACADEMY.—Section 6954(a) of title 10, United States
Code, is amended by inserting after paragraph (9) the following
new paragraph:
‘‘(10) One from the Commonwealth of the Northern Mari-
anas Islands, nominated by the resident representative from
the commonwealth.’’.
(c) AIR FORCE ACADEMY.—Section 9342(a) of title 10, United
States Code, is amended by inserting after paragraph (9) the follow-
ing new paragraph:
‘‘(10) One cadet from the Commonwealth of the Northern
Marianas Islands, nominated by the resident representative
from the commonwealth.’’.
SEC. 533. REPEAL OF REQUIREMENT FOR ATHLETIC DIRECTOR AND
NONAPPROPRIATED FUND ACCOUNT FOR THE ATHLETICS
PROGRAMS AT THE SERVICE ACADEMIES.
(a) UNITED STATES MILITARY ACADEMY.—(1) Section 4357 of
title 10, United States Code, is repealed.
(2) The table of sections at the beginning of chapter 403 of
such title is amended by striking out the item relating to section
4357.
(b) UNITED STATES NAVAL ACADEMY.—Section 556 of the
National Defense Authorization Act for Fiscal Year 1995 (Public
Law 103–337; 108 Stat. 2774) is amended by striking out sub-
sections (b) and (e).
(c) UNITED STATES AIR FORCE ACADEMY.—(1) Section 9356 of
title 10, United States Code, is repealed.
(2) The table of sections at the beginning of chapter 903 of
such title is amended by striking out the item relating to section
9356.
H. R. 1530—132
SEC. 534. REPEAL 
OF 
REQUIREMENT 
FOR 
PROGRAM 
TO 
TEST
PRIVATIZATION OF SERVICE ACADEMY PREPARATORY
SCHOOLS.
Section 536 of the National Defense Authorization Act for Fiscal
Year 1994 (Public Law 103–160; 10 U.S.C. 4331 note) is repealed.
PART II—RESERVE OFFICER TRAINING CORPS
SEC. 541. ROTC ACCESS TO CAMPUSES.
(a) IN GENERAL.—Chapter 49 of title 10, United States Code,
is amended by adding at the end the following new section:
‘‘§ 983. Institutions of higher education that prohibit Senior
ROTC units: denial of Department of Defense
grants and contracts
‘‘(a) DENIAL OF DEPARTMENT OF DEFENSE GRANTS AND CON-
TRACTS.—(1) No funds appropriated or otherwise available to the
Department of Defense may be made obligated by contract or by
grant (including a grant of funds to be available for student aid)
to any institution of higher education that, as determined by the
Secretary of Defense, has an anti-ROTC policy and at which, as
determined by the Secretary, the Secretary would otherwise main-
tain or seek to establish a unit of the Senior Reserve Officer
Training Corps or at which the Secretary would otherwise enroll
or seek to enroll students for participation in a unit of the Senior
Reserve Officer Training Corps at another nearby institution of
higher education.
‘‘(2) In the case of an institution of higher education that
is ineligible for Department of Defense grants and contracts by
reason of paragraph (1), the prohibition under that paragraph shall
cease to apply to that institution upon a determination by the
Secretary that the institution no longer has an anti-ROTC policy.
‘‘(b) NOTICE
OF
DETERMINATION.—Whenever the Secretary
makes a determination under subsection (a) that an institution
has an anti-ROTC policy, or that an institution previously deter-
mined to have an anti-ROTC policy no longer has such a policy,
the Secretary—
‘‘(1) shall transmit notice of that determination to the Sec-
retary of Education and to the Committee on Armed Services
of the Senate and the Committee on National Security of the
House of Representatives; and
‘‘(2) shall publish in the Federal Register notice of that
determination and of the effect of that determination under
subsection (a)(1) on the eligibility of that institution for Depart-
ment of Defense grants and contracts.
‘‘(c) SEMIANNUAL NOTICE IN FEDERAL REGISTER.—The Secretary
shall publish in the Federal Register once every six months a
list of each institution of higher education that is currently ineligible
for Department of Defense grants and contracts by reason of a
determination of the Secretary under subsection (a).
‘‘(d) ANTI-ROTC POLICY.—In this section, the term ‘anti-ROTC
policy’ means a policy or practice of an institution of higher edu-
cation that—
‘‘(1) prohibits, or in effect prevents, the Secretary of Defense
from maintaining or establishing a unit of the Senior Reserve
Officer Training Corps at that institution, or
H. R. 1530—133
‘‘(2) prohibits, or in effect prevents, a student at that
institution from enrolling in a unit of the Senior Reserve Officer
Training Corps at another institution of higher education.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following
new item:
‘‘983. Institutions of higher education that prohibit Senior ROTC units: denial of De-
partment of Defense grants and contracts.’’.
SEC. 542. ROTC SCHOLARSHIPS FOR THE NATIONAL GUARD.
(a) CLARIFICATION OF RESTRICTION ON ACTIVE DUTY.—Para-
graph (2) of section 2107(h) of title 10, United States Code, is
amended by inserting ‘‘full-time’’ before ‘‘active duty’’ in the second
sentence.
(b) REDESIGNATION OF ROTC SCHOLARSHIPS.—Such paragraph
is further amended by inserting after the first sentence the following
new sentence: ‘‘A cadet designated under this paragraph who, hav-
ing initially contracted for service as provided in subsection (b)(5)(A)
and having received financial assistance for two years under an
award providing for four years of financial assistance under this
section, modifies such contract with the consent of the Secretary
of the Army to provide for service as described in subsection
(b)(5)(B), may be counted, for the year in which the contract is
modified, toward the number of appointments required under the
preceding sentence for financial assistance awarded for a period
of four years.’’.
SEC. 543. DELAY IN REORGANIZATION OF ARMY ROTC REGIONAL
HEADQUARTERS STRUCTURE.
(a) DELAY.—The Secretary of the Army may not take any
action to reorganize the regional headquarters and basic camp
structure of the Reserve Officers Training Corps program of the
Army until six months after the date on which the report required
by subsection (d) is submitted.
(b) COST-BENEFIT ANALYSIS.—The Secretary of the Army shall
conduct a comparative cost-benefit analysis of various options for
the reorganization of the regional headquarters and basic camp
structure of the Army ROTC program. As part of such analysis,
the Secretary shall measure each reorganization option considered
against a common set of criteria.
(c) SELECTION OF REORGANIZATION OPTION FOR IMPLEMENTA-
TION.—Based on the findings resulting from the cost-benefit analysis
under subsection (b) and such other factors as the Secretary consid-
ers appropriate, the Secretary shall select one reorganization option
for implementation. The Secretary may select an option for
implementation only if the Secretary finds that the cost-benefit
analysis and other factors considered clearly demonstrate that such
option, better than any other option considered—
(1) provides the structure to meet projected mission require-
ments;
(2) achieves the most significant personnel and cost savings;
(3) uses existing basic and advanced camp facilities to
the maximum extent possible;
(4) minimizes additional military construction costs; and
(5) makes maximum use of the reserve components to
support basic and advanced camp operations, thereby minimiz-
ing the effect of those operations on active duty units.
H. R. 1530—134
(d) REPORT.—Not later than 60 days after the date of the
enactment of this Act, the Secretary of the Army shall submit
to the Committee on Armed Services of the Senate and the Commit-
tee on National Security of the House of Representatives a report
describing the reorganization option selected under subsection (c).
The report shall include the results of the cost-benefit analysis
under subsection (b) and a detailed rationale for the reorganization
option selected.
SEC. 544. DURATION OF FIELD TRAINING OR PRACTICE CRUISE
REQUIRED UNDER THE SENIOR RESERVE OFFICERS’
TRAINING CORPS PROGRAM.
Section 2104(b)(6)(A)(ii) of title 10, United States Code, is
amended by striking out ‘‘not less than six weeks’ duration’’ and
inserting in lieu thereof ‘‘a duration’’.
SEC. 545. ACTIVE DUTY OFFICERS DETAILED TO ROTC DUTY AT SEN-
IOR MILITARY COLLEGES TO SERVE AS COMMANDANT AND
ASSISTANT COMMANDANT OF CADETS AND AS TACTICAL
OFFICERS.
(a) IN GENERAL.—Chapter 103 of title 10, United States Code,
is amended by adding at the end the following new section:
‘‘§ 2111a. Detail of officers to senior military colleges
‘‘(a) DETAIL OF OFFICERS TO SERVE AS COMMANDANT OR ASSIST-
ANT COMMANDANT OF CADETS.—(1) Upon the request of a senior
military college, the Secretary of Defense may detail an officer
on the active-duty list to serve as Commandant of Cadets at that
college or (in the case of a college with an Assistant Commandant
of Cadets) detail an officer on the active-duty list to serve as
Assistant Commandant of Cadets at that college (but not both).
‘‘(2) In the case of an officer detailed as Commandant of Cadets,
the officer may, upon the request of the college, be assigned from
among the Professor of Military Science, the Professor of Naval
Science (if any), and the Professor of Aerospace Science (if any)
at that college or may be in addition to any other officer detailed
to that college in support of the program.
‘‘(3) In the case of an officer detailed as Assistant Commandant
of Cadets, the officer may, upon the request of the college, be
assigned from among officers otherwise detailed to duty at that
college in support of the program or may be in addition to any
other officer detailed to that college in support of the program.
‘‘(b) DESIGNATION OF OFFICERS AS TACTICAL OFFICERS.—Upon
the request of a senior military college, the Secretary of Defense
may authorize officers (other than officers covered by subsection
(a)) who are detailed to duty as instructors at that college to
act simultaneously as tactical officers (with or without compensa-
tion) for the Corps of Cadets at that college.
‘‘(c) DETAIL OF OFFICERS.—The Secretary of a military depart-
ment shall designate officers for detail to the program at a senior
military college in accordance with criteria provided by the college.
An officer may not be detailed to a senior military college without
the approval of that college.
‘‘(d) SENIOR MILITARY COLLEGES.—The senior military colleges
are the following:
‘‘(1) Texas A&M University.
‘‘(2) Norwich College.
‘‘(3) The Virginia Military Institute.
H. R. 1530—135
‘‘(4) The Citadel.
‘‘(5) Virginia Polytechnic Institute and State University.
‘‘(6) North Georgia College.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following
new item:
‘‘2111a. Detail of officers to senior military colleges.’’.
Subtitle E—Miscellaneous Reviews,
Studies, and Reports
SEC. 551. REPORT CONCERNING APPROPRIATE FORUM FOR JUDICIAL
REVIEW OF DEPARTMENT OF DEFENSE PERSONNEL
ACTIONS.
(a) ESTABLISHMENT.—The Secretary of Defense shall establish
an advisory committee to consider issues relating to the appropriate
forum for judicial review of Department of Defense administrative
personnel actions.
(b) MEMBERSHIP.—(1) The committee shall be composed of five
members, who shall be appointed by the Secretary of Defense
after consultation with the Attorney General and the Chief Justice
of the United States.
(2) All members of the committee shall be appointed not later
than 30 days after the date of the enactment of this Act.
(c) DUTIES.—The committee shall review, and provide findings
and recommendations regarding, the following matters with respect
to judicial review of administrative personnel actions of the Depart-
ment of Defense:
(1) Whether the existing forum for such review through
the United States district courts provides appropriate and ade-
quate review of such actions.
(2) Whether jurisdiction to conduct judicial review of such
actions should be established in a single court in order to
provide a centralized review of such actions and, if so, in
which court that jurisdiction should be vested.
(d) REPORT.—(1) Not later than December 15, 1996, the commit-
tee shall submit to the Secretary of Defense a report setting forth
its findings and recommendations, including its recommendations
pursuant to subsection (c).
(2) Not later than January 1, 1997, the Secretary of Defense,
after consultation with the Attorney General, shall transmit the
committee’s report to Congress. The Secretary may include in the
transmittal any comments on the report that the Secretary or
the Attorney General consider appropriate.
(e) TERMINATION OF COMMITTEE.—The committee shall termi-
nate 30 days after the date of the submission of its report to
Congress under subsection (d)(2).
SEC. 552. COMPTROLLER GENERAL REVIEW OF PROPOSED ARMY END
STRENGTH ALLOCATIONS.
(a) IN GENERAL.—During fiscal years 1996 through 2001, the
Comptroller General of the United States shall analyze the plans
of the Secretary of the Army for the allocation of assigned active
component end strengths for the Army through the requirements
process known as Total Army Analysis 2003 and through any
subsequent similar requirements process of the Army that is con-
H. R. 1530—136
ducted before 2002. The Comptroller General’s analysis shall con-
sider whether the proposed active component end strengths and
planned allocation of forces for that period will be sufficient to
implement the national military strategy. In monitoring those plans,
the Comptroller General shall determine the extent to which the
Army will be able during that period—
(1) to man fully the combat force based on the projected
active component Army end strength for each of fiscal years
1996 through 2001;
(2) to meet the support requirements for the force and
strategy specified in the report of the Bottom-Up Review,
including requirements for operations other than war; and
(3) to streamline further Army infrastructure in order to
eliminate duplication and inefficiencies and replace active duty
personnel in overhead positions, whenever practicable, with
civilian or reserve personnel.
(b) ACCESS TO DOCUMENTS, ETC.—The Secretary of the Army
shall ensure that the Comptroller General is provided access, on
a timely basis and in accordance with the needs of the Comptroller
General, to all analyses, models, memoranda, reports, and other
documents prepared or used in connection with the requirements
process of the Army known as Total Army Analysis 2003 and
any subsequent similar requirements process of the Army that
is conducted before 2002.
(c) ANNUAL REPORT.—Not later than March 1 of each year
through 2002, the Comptroller General shall submit to Congress
a report on the findings and conclusions of the Comptroller General
under this section.
SEC. 553. REPORT ON MANNING STATUS OF HIGHLY DEPLOYABLE
SUPPORT UNITS.
(a) REPORT.—Not later than September 30, 1996, the Secretary
of Defense shall submit to the Committee on Armed Services of
the Senate and the Committee on National Security of the House
of Representatives a report on the units of the Armed Forces under
the Secretary’s jurisdiction—
(1) that (as determined by the Secretary of the military
department concerned) are high-priority support units that
would deploy early in a contingency operation or other crisis;
and
(2) that are, as a matter of policy, managed at less than
100 percent of their authorized strengths.
(b) MATTERS TO BE INCLUDED.—The Secretary shall include
in the report—
(1) the number of such high-priority support units (shown
by type of unit) that are so managed;
(2) the level of manning within such high-priority support
units; and
(3) with respect to each such unit, either the justification
for manning of less than 100 percent or the status of corrective
action.
SEC. 554. REVIEW OF SYSTEM FOR CORRECTION OF MILITARY
RECORDS.
(a) REVIEW OF PROCEDURES.—The Secretary of Defense shall
review the system and procedures for the correction of military
records used by the Secretaries of the military departments in
the exercise of authority under section 1552 of title 10, United