243
‘‘(2) The Secretary concerned may pay an allowance
for housing to the dependents of a member of the uni-
formed services who dies while on active duty and whose
dependents are not occupying a housing facility under the
jurisdiction of a uniformed service on the date of the mem-
ber’s death or are occupying such housing on a rental
basis on such date, or whose dependents vacate such hous-
ing sooner than 180 days after the date of the member’s
death. The amount of the allowance shall be the same
amount that would otherwise be payable to the deceased
member under this section if the member had not died.
The payment of an allowance under this paragraph shall
terminate 180 days after the date of the member’s
death.’’.
(b) REPEAL
OF SUPERSEDED AUTHORITIES.—(1)
Section 403a of title 37, United States Code, is repealed.
(2) Section 405 of such title is amended—
(A) by striking out subsection (b); and
(B) by redesignating subsections (c) and (d) as
subsections (b) and (c), respectively.
(3) Section 427 of such title is amended—
(A) by striking out subsection (a); and
(B) in subsection (b)—
(i) by striking out ‘‘(b) ADDITIONAL SEPA-
RATION ALLOWANCE.—’’ and inserting in lieu
244
thereof ‘‘(a) AVAILABILITY OF SEPARATION AL-
LOWANCE.—’’;
(ii) in paragraph (1), by striking out ‘‘in-
cluding subsection (a)’’ and inserting in lieu
thereof ‘‘including section 403(g) of this title’’;
(iii) in paragraph (4)—
(I) by striking out ‘‘(4) A member’’
and inserting in lieu thereof ‘‘(b) EFFECT
OF ELECTION TO SERVE UNACCOMPANIED
TOUR OF DUTY.—A member’’;
(II) by striking out ‘‘paragraph (1)(A)
of this subsection’’ and inserting in lieu
thereof ‘‘subsection (a)(1)(A)’’; and
(iv) in paragraph (5)—
(I) by striking out ‘‘(5) Section 421’’
and inserting in lieu thereof ‘‘(c) EFFECT
OF
DEPENDENT
ENTITLED
TO
BASIC
PAY.—Section 421’’; and
(II) 
by 
striking 
out 
‘‘paragraph
(1)(D)’’ both places it appears and insert-
ing in lieu thereof ‘‘subsection (a)(1)(D)’’.
(4) The table of sections at the beginning of chapter
7 of title 37, United States Code, is amended by striking
out the items relating to sections 403 and 403a and insert-
ing in lieu thereof the following new item:
‘‘403. Basic allowance for housing.’’.
245
(c) CONFORMING AMENDMENTS.—(1) Title 37, Unit-
ed States Code, is amended—
(A) in section 101(25), by striking out ‘‘basic
allowance for quarters (including any variable hous-
ing allowance or station housing allowance)’’ and in-
serting in lieu thereof ‘‘basic allowance for housing’’;
(B) in section 406(c), by striking out ‘‘sections
404 and 405’’ and inserting in lieu thereof ‘‘sections
403(f), 404, and 405’’;
(C) in section 420(c), by striking out ‘‘quar-
ters’’ and inserting in lieu thereof ‘‘housing’’;
(D) in section 551(3)(D), by striking out ‘‘basic
allowance for quarters’’ and inserting in lieu thereof
‘‘basic allowance for housing’’; and
(E) in section 1014(a), by striking out ‘‘basic
allowance for quarters’’ and inserting in lieu thereof
‘‘basic allowance for housing’’.
(2) Title 10, United States Code, is amended—
(A) in section 708(c)(1), by striking out ‘‘basic
allowance for quarters or basic allowance for subsist-
ence’’ and inserting in lieu thereof ‘‘basic allowance
for housing under section 403 of title 37, basic al-
lowance for subsistence under section 402 of such
title,’’;
(B) in section 2830(a)—
246
(i) in paragraph (1), by striking out ‘‘basic
allowance for quarters’’ and inserting in lieu
thereof ‘‘basic allowance for housing under sec-
tion 403 of title 37’’; and
(ii) in paragraph (2), by striking out
‘‘basic allowance for quarters’’ and inserting in
lieu thereof ‘‘basic allowance for housing’’;
(C) in section 2882(b)—
(i) in paragraph (1), by striking out ‘‘sec-
tion 403(b)’’ and inserting in lieu thereof ‘‘sec-
tion 403’’; and
(ii) in paragraph (2), by striking out
‘‘basic allowance for quarters’’ and all that fol-
lows through the end of the paragraph and in-
serting in lieu thereof ‘‘basic allowance for
housing under section 403 of title 37.’’;
(D) in section 7572(b)—
(i) in paragraph (1), by striking out ‘‘the
total of—’’ and all that follows through the end
of the paragraph and inserting in lieu thereof
‘‘the basic allowance for housing payable under
section 403 of title 37 to a member of the same
pay grade without dependents for the period
during which the member is deprived of quar-
ters on board ship.’’; and
247
(ii) in paragraph (2), by striking out
‘‘basic allowance for quarters’’ and inserting in
lieu thereof ‘‘basic allowance for housing’’; and
(E) in section 7573, by striking out ‘‘basic al-
lowance for quarters’’ and inserting in lieu thereof
‘‘basic allowance for housing under section 403 of
title 37’’.
(3) Section 5561(6)(D) of title 5, United States
Code, is amended by striking out ‘‘basic allowance for
quarters’’ and inserting in lieu thereof ‘‘basic allowance
for housing’’.
(4) Section 107(b) of title 32, United States Code,
is amended by striking out ‘‘and quarters’’ and inserting
in lieu thereof ‘‘and housing’’.
(5) Section 4(k)(10) of the Military Selective Service
Act (50 U.S.C. App. 454(k)(10)) is amended by striking
out ‘‘as such terms’’ and all that follows through ‘‘ex-
tended or amended’’ and inserting in lieu thereof ‘‘shall
be entitled to receive a dependency allowance equal to the
basic allowance for quarters provided for persons in pay
grade E–1 under section 403 of title 37, United States
Code,’’.
(d) TRANSITION TO BASIC ALLOWANCE FOR HOUS-
ING.—The Secretary of Defense shall develop and imple-
ment a plan to incrementally manage the rate of growth
248
of the various components of the basic allowance for hous-
ing authorized by section 403 of title 37, United States
Code (as amended by subsection (a)), during a transition
period of not more than six years. During the transition
period, the Secretary may continue to use the authorities
provided under sections 403, 403a, 405(b), and 427(a) of
title 37, United States Code (as in effect on the day before
the date of the enactment of this Act), but subject to such
modifications as the Secretary considers necessary, to pro-
vide allowances for members of the uniformed services.
(e) AVAILABILITY OF FUNDS TO REDUCE OUT-OF-
POCKET HOUSING COSTS.—Of the amount authorized to
be appropriated pursuant to section 421 for military per-
sonnel, $35,000,000 shall be available to the Secretary of
Defense to increase the rates of basic allowance for quar-
ters authorized members of the Armed Forces by section
403 of title 37, United States Code (as amended by sub-
section (a)), so as to further reduce out-of-pocket housing
costs incurred by members of the Armed Forces.
249
Subtitle B—Bonuses and Special
and Incentive Pays
SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES
AND SPECIAL PAY AUTHORITIES FOR RE-
SERVE FORCES.
(a) SPECIAL PAY FOR HEALTH PROFESSIONALS IN
CRITICALLY
SHORT
WARTIME
SPECIALTIES.—Section
302g(f) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1998’’ and inserting in lieu
thereof ‘‘September 30, 1999’’.
(b) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(f) of title 37, United States Code, is amend-
ed by striking out ‘‘September 30, 1998’’ and inserting
in lieu thereof ‘‘September 30, 1999’’.
(c) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1998’’ and inserting in
lieu thereof ‘‘September 30, 1999’’.
(d) SPECIAL PAY
FOR ENLISTED MEMBERS AS-
SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section
308d(c) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1998’’ and inserting in lieu
thereof ‘‘September 30, 1999’’.
(e) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of title 37, United States Code, is amended
250
by striking out ‘‘September 30, 1998’’ and inserting in
lieu thereof ‘‘September 30, 1999’’.
(f) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS.—Section 308h(g) of title 37, United States
Code, is amended by striking out ‘‘September 30, 1998’’
and inserting in lieu thereof ‘‘September 30, 1999’’.
(g) PRIOR SERVICE ENLISTMENT BONUS.—Section
308i(i) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1998’’ and inserting in lieu
thereof ‘‘September 30, 1999’’.
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUSES
AND SPECIAL PAY AUTHORITIES FOR NURSE
OFFICER CANDIDATES, REGISTERED NURSES,
AND NURSE ANESTHETISTS.
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States
Code, is amended by striking out ‘‘September 30, 1998’’
and inserting in lieu thereof ‘‘September 30, 1999’’.
(b) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is
amended by striking out ‘‘September 30, 1998’’ and in-
serting in lieu thereof ‘‘September 30, 1999’’.
(c) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of title 37, United States
251
Code, is amended by striking out ‘‘September 30, 1998’’
and inserting in lieu thereof ‘‘September 30, 1999’’.
SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES RELAT-
ING TO PAYMENT OF OTHER BONUSES AND
SPECIAL PAYS.
(a) AVIATION OFFICER RETENTION BONUS.—Sec-
tion 301b(a) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1998,’’ and inserting in
lieu thereof ‘‘September 30, 1999,’’.
(b) REENLISTMENT
BONUS
FOR
ACTIVE
MEM-
BERS.—Section 308(g) of title 37, United States Code, is
amended by striking out ‘‘September 30, 1998’’ and in-
serting in lieu thereof ‘‘September 30, 1999’’.
(c) ENLISTMENT BONUSES
FOR MEMBERS WITH
CRITICAL SKILLS.—Sections 308a(c) and 308f(c) of title
37, United States Code, are each amended by striking out
‘‘September 30, 1998’’ and inserting in lieu thereof ‘‘Sep-
tember 30, 1999’’.
(d) SPECIAL PAY FOR NUCLEAR QUALIFIED OFFI-
CERS EXTENDING PERIOD OF ACTIVE DUTY.—Section
312(e) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1998’’ and inserting in lieu
thereof ‘‘September 30, 1999’’.
(e) NUCLEAR CAREER ACCESSION BONUS.—Section
312b(c) of title 37, United States Code, is amended by
252
striking out ‘‘September 30, 1998’’ and inserting in lieu
thereof ‘‘September 30, 1999’’.
(f) 
NUCLEAR
CAREER
ANNUAL
INCENTIVE
BONUS.—Section 312c(d) of title 37, United States Code,
is amended by striking out ‘‘October 1, 1998’’ and insert-
ing in lieu thereof ‘‘October 1, 1999’’.
(g) REPAYMENT OF EDUCATION LOANS FOR CER-
TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE-
LECTED RESERVE.—Section 16302(d) of title 10, United
States Code, is amended by striking out ‘‘October 1,
1998’’ and inserting in lieu thereof ‘‘October 1, 1999’’.
SEC. 614. INCREASE IN MINIMUM MONTHLY RATE OF HAZ-
ARDOUS DUTY INCENTIVE PAY FOR CERTAIN
MEMBERS.
(a) AERIAL FLIGHT CREWMEMBERS.—The table in
subsection (b) of section 301 of title 37, United States
Code, is amended—
(1) by striking out ‘‘110’’ each place it appears
and inserting in lieu thereof ‘‘150’’; and
(2) by striking out ‘‘125’’ each place it appears
and inserting in lieu thereof ‘‘150’’.
(b) AIR WEAPONS CONTROLLER AIRCREW.—The
table in subsection (c)(2)(A) of such section is amended—
(1) by striking out ‘‘100’’ in the first column of
amounts and inserting in lieu thereof ‘‘150’’;
253
(2) by striking out ‘‘110’’ in the last column of
amounts and inserting in lieu thereof ‘‘150’’; and
(3) by striking out ‘‘125’’ each place it appears
and inserting in lieu thereof ‘‘150’’.
(c) OTHER MEMBERS.—Subsection (c)(1) of such
section is amended—
(1) by striking out ‘‘$110’’ and inserting in lieu
thereof ‘‘$150’’; and
(2) by striking out ‘‘$165’’ and inserting in lieu
thereof ‘‘$225’’.
SEC. 615. AVAILABILITY OF MULTIYEAR RETENTION BONUS
FOR DENTAL OFFICERS.
(a) AVAILABILITY OF RETENTION BONUS.—Chapter
5 of title 37, United States Code, is amended by inserting
after section 301d the following new section:
‘‘§ 301e. Multiyear retention bonus: dental officers of
the armed forces
‘‘(a) BONUS AUTHORIZED.—(1) A dental officer de-
scribed in subsection (b) who executes a written agreement
to remain on active duty for two, three, or four years after
completion of any other active-duty service commitment
may, upon acceptance of the written agreement by the
Secretary of the military department concerned, be paid
a retention bonus as provided in this section.
254
‘‘(2) The amount of a retention bonus under para-
graph (1) may not exceed $14,000 for each year covered
by a four-year agreement. The maximum yearly retention
bonus for two-year and three-year agreements shall be re-
duced to reflect the shorter service commitment.
‘‘(b) OFFICERS AUTOMATICALLY ELIGIBLE.—Sub-
section (a) applies to an officer of the armed forces who—
‘‘(1) is an officer of the Dental Corps of the
Army or the Navy or an officer of the Air Force des-
ignated as a dental officer;
‘‘(2) has a dental specialty in oral and maxillo-
facial surgery;
‘‘(3) is in a pay grade below pay grade 0–7;
‘‘(4) has at least eight years of creditable serv-
ice (computed as described in section 302b(g) of this
title) or has completed any active-duty service com-
mitment incurred for dental education and training;
and
‘‘(5) has completed initial residency training (or
will complete such training before September 30 of
the fiscal year in which the officer enters into an
agreement under subsection (a)).
‘‘(c) EXTENSION OF BONUS TO OTHER DENTAL OF-
FICERS.—At the discretion of the Secretary of the military
department concerned, the Secretary may enter into a
255
written agreement described in subsection (a)(1) with a
dental officer who does not have the dental specialty speci-
fied in subsection (b)(2), and pay a retention bonus to
such an officer as provided in this section, if the officer
otherwise satisfies the eligibility requirements specified in
subsection (b). The Secretaries shall exercise the authority
provided in this section in a manner consistent with regu-
lations prescribed by the Secretary of Defense.
‘‘(d) REFUNDS.—(1) Refunds shall be required, on
a pro rata basis, of sums paid under this section if the
officer who has received the payment fails to complete the
total period of active duty specified in the agreement, as
conditions and circumstances warrant.
‘‘(2) An obligation to reimburse the United States
imposed under paragraph (1) is for all purposes a debt
owed to the United States.
‘‘(3) A discharge in bankruptcy under title 11, United
States Code, that is entered less than five years after the
termination of an agreement under this section does not
discharge the member signing such agreement from a debt
arising under such agreement or under paragraph (1).
This paragraph applies to any case commenced under title
11 after the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1998.’’.
256
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 301d the following new
item:
‘‘301e. Multiyear retention bonus: dental officers of the armed forces.’’.
SEC. 616. INCREASE IN VARIABLE AND ADDITIONAL SPE-
CIAL PAYS FOR CERTAIN DENTAL OFFICERS.
(a) VARIABLE SPECIAL PAY
FOR JUNIOR OFFI-
CERS.—Paragraph (2) of section 302b(a) of title 37, Unit-
ed States Code, is amended by striking out subparagraphs
(C) through (F) and inserting in lieu thereof the following
new subparagraphs:
‘‘(C) $7,000 per year, if the officer has at least
six but less than eight years of creditable service.
‘‘(D) $12,000 per year, if the officer has at
least eight but less than 12 years of creditable serv-
ice.
‘‘(E) $10,000 per year, if the officer has at
least 12 but less than 14 years of creditable service.
‘‘(F) $9,000 per year, if the officer has at least
14 but less than 18 years of creditable service.
‘‘(G) $8,000 per year, if the officer has 18 or
more years of creditable service.’’.
(b) VARIABLE SPECIAL PAY
FOR SENIOR OFFI-
CERS.—Paragraph (3) of such section is amended by
257
striking out ‘‘$1,000’’ and inserting in lieu thereof
‘‘$7,000’’.
(c) ADDITIONAL SPECIAL PAY.—Paragraph (4) of
such section is amended by striking out subparagraphs
(B) through (D) and inserting in lieu thereof the following
new subparagraphs:
‘‘(B) $6,000 per year, if the officer has at least
three but less than 10 years of creditable service.
‘‘(C) $15,000 per year, if the officer has 10 or
more years of creditable service.’’.
SEC. 617. SPECIAL PAY FOR DUTY AT DESIGNATED HARD-
SHIP DUTY LOCATIONS.
(a) SPECIAL PAY AUTHORIZED.—Section 305 of title
37, United States Code, is amended by striking out sub-
section (a) and inserting in lieu thereof the following new
subsection:
‘‘(a) SPECIAL PAY AUTHORIZED.—A member of a
uniformed service who is entitled to basic pay may be paid
special pay under this section at a monthly rate not to
exceed $300 while the member is on duty at a location
in the United States or outside the United States des-
ignated by the Secretary of Defense as a hardship duty
location.’’.
(b) CROSS REFERENCES AND REGULATIONS.—Such
section is further amended—
258
(1) in subsection (b)—
(A) by inserting ‘‘EXCEPTION FOR CER-
TAIN MEMBERS SERVING IN CERTAIN LOCA-
TIONS.—’’ after ‘‘(b)’’; and
(B) by striking out ‘‘as foreign duty pay’’
and inserting in lieu thereof ‘‘as hardship duty
location pay’’;
(2) in subsection (c)—
(A) by inserting ‘‘EXCEPTION FOR MEM-
BERS RECEIVING CAREER SEA PAY.—’’ after
‘‘(c)’’; and
(B) by striking out ‘‘special pay under this
section’’ and inserting in lieu thereof ‘‘hardship
duty location pay under subsection (a)’’; and
(3) by adding at the end the following new sub-
section:
‘‘(d) REGULATIONS.—The Secretary of Defense shall
prescribe regulations for the provision of hardship duty
location pay under subsection (a), including the actual
monthly rates at which the special pay will be available.’’.
(c) CLERICAL AMENDMENTS.—(1) the heading of
such section is amended to read as follows:
‘‘§ 305. Special pay: hardship duty location pay’’.
(2) The table of sections at the beginning of chapter
5 of title 37, United States Code, is amended by striking
259
out the item relating to section 305 and inserting in lieu
thereof the following new item:
‘‘305. Special pay: hardship duty location pay.’’.
(d) CONFORMING AMENDMENT.—Section 907(d) of
such title is amended by striking out ‘‘duty at certain
places’’ and inserting in lieu thereof ‘‘duty at a hardship
duty location’’.
(e) TRANSITION.—Until such time as the Secretary
of Defense prescribes regulations regarding the provision
of hardship duty location pay under section 305 of title
37, United States Code, as amended by this section, the
Secretary may continue to use the authority provided by
such section 305, as in effect on the day before the date
of the enactment of this Act, to provide special pay to en-
listed members of the uniformed services on duty at cer-
tain places.
SEC. 618. SELECTED RESERVE REENLISTMENT BONUS.
(a) ELIGIBLE MEMBERS.—Subsection (a)(1) of sec-
tion 308b of title 37, United States Code, is amended by
striking out ‘‘ten years’’ and inserting in lieu thereof ‘‘14
years’’.
(b) BONUS AMOUNTS; PAYMENT.—Subsection (b) of
such section is amended to read as follows:
‘‘(b)(1) The amount of a bonus under this section
may not exceed—
260
‘‘(A) $2,500, in the case of a member who reen-
lists or extends an enlistment for a period of three
years; and
‘‘(B) $5,000, in the case of a member who reen-
lists or extends an enlistment for a period of six
years.
‘‘(2) The bonus shall be paid according to a payment
schedule determined by the Secretary concerned, except
that the initial payment to a member may not exceed one-
half the total bonus amount for the member.’’.
(c) NUMBER OF INDIVIDUAL BONUSES.—Subsection
(c) of such section is amended to read as follows:
‘‘(c) A member may not be paid more than one six-
year bonus or two three-year bonuses under this section.’’.
(d) EFFECT
OF FAILURE
TO SERVE SATISFAC-
TORILY.—Subsection (d) of such section is amended to
read as follows:
‘‘(d) A member who receives a bonus under this sec-
tion and who fails, during the period for which the bonus
was paid, to serve satisfactorily in the element of the Se-
lected Reserve of the Ready Reserve with respect to which
the bonus was paid shall refund to the United States an
amount that bears the same relation to the amount of the
bonus paid to the member as the period that the member
261
failed to serve satisfactorily bears to the total period for
which the bonus was paid.’’.
SEC. 619. SELECTED RESERVE ENLISTMENT BONUS FOR
FORMER ENLISTED MEMBERS.
(a) ELIGIBLE PERSONS.—Subsection (a)(2) of sec-
tion 308i of title 37, United States Code, is amended by
striking out subparagraph (A) and inserting in lieu thereof
the following new subparagraph:
‘‘(A) has completed a military obligation but
has less than 14 years of total military service;’’;
(b) BONUS AMOUNTS; PAYMENT.—Subsection (b) of
such section is amended to read as follows:
‘‘(b)(1) The amount of a bonus under this section
may not exceed—
‘‘(A) $2,500, in the case of a person who enlists
for a period of three years; and
‘‘(B) $5,000, in the case of a person who enlists
for a period of six years.
‘‘(2) The bonus shall be paid according to a payment
schedule determined by the Secretary concerned, except
that the initial payment to a person may not exceed one-
half the total bonus amount for the person.’’.
(c) LIMITATIONS.—Subsection (c) of such section is
amended to read as follows:
262
‘‘(c)(1) A person may not be paid more than one six-
year bonus or two three-year bonuses under this section.
‘‘(2) A person may not be paid a bonus under this
section unless the specialty associated with the position
the person is projected to occupy as a member of the Se-
lected Reserve is a specialty in which—
‘‘(A) the person successfully served while a
member on active duty; and
‘‘(B) the person attained a level of qualification
while a member commensurate with the grade and
years of service of the member.’’.
SEC. 620. SPECIAL PAY OR BONUSES FOR ENLISTED MEM-
BERS EXTENDING TOURS OF DUTY OVER-
SEAS.
(a) INCLUSION OF BONUS INCENTIVE.—(1) Section
314 of title 37, United States Code, is amended to read
as follows:
‘‘§ 314. Special pay or bonus: qualified enlisted mem-
bers extending duty at designated loca-
tions overseas
‘‘(a) COVERED MEMBERS.—This section applies with
respect to an enlisted member of an armed force who—
‘‘(1) is entitled to basic pay;
‘‘(2) has a specialty that is designated by the
Secretary concerned for the purposes of this section;
263
‘‘(3) has completed a tour of duty (as defined
in accordance with regulations prescribed by the
Secretary concerned) at a location outside the 48
contiguous States and the District of Columbia that
is designated by the Secretary concerned for the
purposes of this section; and
‘‘(4) at the end of that tour of duty executes an
agreement to extend that tour for a period of not
less than one year.
‘‘(b) SPECIAL PAY OR BONUS AUTHORIZED.—Under
regulations prescribed by the Secretary concerned, an en-
listed member described in subsection (a) is entitled, upon
acceptance by the Secretary concerned of the agreement
providing for extension of the member’s tour of duty, to
either—
‘‘(1) special pay for duty performed during the
period of the extension at a rate of not more than
$80 per month, as prescribed by the Secretary con-
cerned; or
‘‘(2) a bonus of up to $2,000 per year, as pre-
scribed by the Secretary concerned, for specialty re-
quirements at designated locations.
‘‘(c) SELECTION AND PAYMENT OF SPECIAL PAY OR
BONUS.—Not later than the date on which the Secretary
concerned accepts an agreement described in subsection
264
(a)(4) providing for the extension of a member’s tour of
duty, the Secretary concerned shall notify the member re-
garding whether the member will receive special pay or
a bonus under this section. The payment rate for the spe-
cial pay or bonus shall be fixed at the time of the agree-
ment and may not be changed during the period of the
extended tour of duty. The Secretary concerned may pay
a bonus under this section either in a lump sum or install-
ments.
‘‘(d) REPAYMENT OF BONUS.—(1) If a member who
receives all or part of a bonus under this section fails to
complete the total period of extension specified in the
agreement described in subsection (a)(4), the Secretary
concerned may require the member to repay the United
States, on a pro rata basis and to the extent that the Sec-
retary determines conditions and circumstances warrant,
amounts paid to the member under this section.
‘‘(2) An obligation to repay the United States im-
posed under paragraph (1) is for all purposes a debt owed
to the United States.
‘‘(3) A discharge in bankruptcy under title 11 that
is entered less than five years after the termination of the
agreement does not discharge the member signing the
agreement from a debt arising under the agreement or
265
under paragraph (1). This paragraph applies to any case
commenced under title 11 on or after October 1, 1997.
‘‘(e) EFFECT
OF REST
AND RECUPERATIVE AB-
SENCE.—A member who elects to receive one of the bene-
fits specified in section 705(b) of title 10 as part of the
extension of a tour of duty is not entitled to the special
pay or bonus authorized by this section for the period of
the extension of duty for which the benefit under such sec-
tion is provided.’’.
(2) The item relating to section 314 in the table of
sections at the beginning of chapter 5 of such title is
amended to read as follows:
‘‘314. Special pay or bonus: qualified enlisted members extending duty at des-
ignated locations overseas.’’.
(b) APPLICATION OF AMENDMENT.—Section 314 of
title 37, United States Code, as amended by subsection
(a), shall apply with respect to an agreement to extend
a tour of duty as provided in such section executed on
or after October 1, 1997.
SEC. 621. INCREASE IN AMOUNT OF FAMILY SEPARATION
ALLOWANCE.
Section 427 of title 37, United States Code (as
amended by section 604(b)(3)), is further amended in sub-
section (a)(1) by striking out ‘‘$75’’ and inserting in lieu
thereof ‘‘$100’’.
266
SEC. 622. CHANGE IN REQUIREMENTS FOR READY RE-
SERVE MUSTER DUTY ALLOWANCE.
Section 433(c) of title 37, United States Code, is
amended—
(1) in the first sentence, by striking out ‘‘and
shall be’’ and all that follows through ‘‘is per-
formed’’; and
(2) by inserting after the first sentence the fol-
lowing new sentence: ‘‘The allowance may be paid to
the member on or before the date on which the mus-
ter duty is performed, but shall be paid not later
than 30 days after the date on which the muster
duty is performed.’’.
SEC. 623. EXPANSION OF RESERVE AFFILIATION BONUS TO
INCLUDE COAST GUARD RESERVE.
Section 308e of title 37, United States Code, is
amended—
(1) in subsection (a), by striking out ‘‘Under
regulations prescribed by the Secretary of Defense,
the Secretary of a military department’’ and insert-
ing in lieu thereof ‘‘The Secretary concerned’’;
(2) in subsection (b)(3), by striking out ‘‘des-
ignated by the Secretary of Defense for the purposes
of this section’’ and inserting in lieu thereof ‘‘des-
ignated for purposes of this section in the regula-
tions prescribed under subsection (f)’’;
267
(3) in subsection (c)(3), by striking out ‘‘regu-
lations prescribed by the Secretary of Defense’’ and
inserting in lieu thereof ‘‘the regulations prescribed
under subsection (f)’’; and
(4) by adding at the end the following new sub-
section:
‘‘(f) This section shall be administered under regula-
tions prescribed by the Secretary of Defense for the armed
forces under the jurisdiction of the Secretary of Defense
and by the Secretary of Transportation for the Coast
Guard when the Coast Guard is not operating as a service
in the Navy.’’.
Subtitle C—Travel and
Transportation Allowances
SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES
FOR DEPENDENTS OF MEMBER SENTENCED
BY COURT-MARTIAL.
Section 406(h)(2)(C) of title 37, United States Code,
is amended by striking out the comma at the end of clause
(iii) and all that follows through ‘‘title 10.’’ and inserting
in lieu thereof a period.
SEC. 632. DISLOCATION ALLOWANCE.
Section 407 of title 37, United States Code, is
amended to read as follows:
268
‘‘§ 407. Travel and transportation allowances: disloca-
tion allowance
‘‘(a) BASIC ELIGIBILITY.—(1) Under regulations pre-
scribed by the Secretary concerned, a member of a uni-
formed service described in paragraph (2) is entitled to
a dislocation allowance at the rate set forth in the tables
in subsection (c) for the member’s pay grade and depend-
ency status.
‘‘(2) A member of the uniformed services referred to
in paragraph (1) is any of the following:
‘‘(A) A member who makes a change of perma-
nent station and the member’s dependents actually
make an authorized move in connection with the
change, including a move by the dependents—
‘‘(i) to join the member at the member’s
duty station after an unaccompanied tour of
duty when the member’s next tour of duty is an
accompanied tour at the same station; and
‘‘(ii) to a location designated by the mem-
ber after an accompanied tour of duty when the
member’s next tour of duty is an unaccom-
panied tour at the same duty station.
‘‘(B) A member whose dependents actually
move pursuant to section 405a(a), 406(e), 406(h),
or 554 of this title.
270
scribed in subparagraph (C) or (D)(ii) of subsection
(a)(2), the member is also entitled to a second dislocation
allowance at the rate set forth in the tables in subsection
(c) for the member’s pay grade and dependency status if,
subsequent to the member or the member’s dependents ac-
tually moving from their place of residence under cir-
cumstances described in section 406a of this title, the
member or member’s dependents complete that move to
a new location and then actually move from that new loca-
tion to another location also under circumstances de-
scribed in section 406a of this title.
‘‘(2) If a second dislocation allowance is paid under
this subsection, the member is not entitled to a dislocation
allowance as a member described in subparagraph (A) or
(E) of subsection (a)(2) in connection with those moves.
‘‘(c) DISLOCATION ALLOWANCE RATES.—(1) A dis-
location allowance under this section shall be paid at the
following monthly rates, based on a member’s pay grade
and dependency status:
‘‘COMMISSIONED OFFICERS
Paygrade
Without dependents
With dependents
O–10 ...................................................
$2,061.75
$2,538.00
O–9 .....................................................
2,061.75
2,538.00
O–8 .....................................................
2,061.75
2,538.00
O–7 .....................................................
2,061.75
2,538.00
O–6 .....................................................
1,891.50
2,285.25
O–5 .....................................................
1,821.75
2,202.75
O–4 .....................................................
1,688.25
1,941.75
O–3 .....................................................
1,353.00
1,606.50
O–2 .....................................................
1,073.25
1,371.75
271
‘‘COMMISSIONED OFFICERS—Continued
Paygrade
Without dependents
With dependents
O–1 .....................................................
903.75
1,226.25
‘‘COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE
DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT
OFFICER
Paygrade
Without dependents
With dependents
O–3E ...................................................
$1,461.00
$1,726.50
O–2E ...................................................
1,242.00
1,557.75
O–1E ...................................................
1,068.00
1,439.25
‘‘WARRANT OFFICER
Paygrade
Without dependents
With dependents
W–5 ....................................................
$1,715.25
$1,874.25
W–4 ....................................................
1,523.25
1,718.25
W–3 ....................................................
1,280.00
1,574.25
W–2 ....................................................
1,137.00
1,448.25
W–1 ....................................................
951.75
1,252.50
‘‘ENLISTED MEMBER
Paygrade
Without dependents
With dependents
E–9 .....................................................
$1,251.00
$1,649.25
E–8 .....................................................
1,148.25
1,520.25
E–7 .....................................................
981.00
1,411.50
E–6 .....................................................
888.00
1,304.25
E–5 .....................................................
819.00
1,173.00
E–4 .....................................................
712.50
1,020.00
E–3 .....................................................
699.00
949.50
E–2 .....................................................
567.75
903.75
E–1 .....................................................
506.25
903.75
‘‘(2) For each calendar year after 1997, the Secretary
of Defense shall adjust the rates in the tables in para-
graph (1) by the percentage equal to the rate of change
of the national average monthly cost of housing, as deter-
mined by the Secretary under section 403 of this title for
that calendar year.
272
‘‘(d) FISCAL YEAR LIMITATION; EXCEPTIONS.—(1)
A member is not entitled to more than one dislocation al-
lowance during a fiscal year unless—
‘‘(A) the Secretary concerned finds that the ex-
igencies of the service require the member to make
more than one change of permanent station during
the fiscal year;
‘‘(B) the member is ordered to a service school
as a change of permanent station;
‘‘(C) the member’s dependents are covered by
section 405a(a), 406(e), 406(h), or 554 of this title;
or
‘‘(D) subparagraph (C) or (D)(ii) of subsection
(a)(2) or subsection (b) apply with respect to the
member or the member’s dependents.
‘‘(2) This subsection does not apply in time of na-
tional emergency or in time of war.
‘‘(e) FIRST OR LAST DUTY.—A member is not enti-
tled to payment of a dislocation allowance when ordered
from the member’s home to the member’s first duty sta-
tion or from the member’s last duty station to the mem-
ber’s home.
‘‘(f) RULE OF CONSTRUCTION.—For purposes of this
section, a member whose dependents may not make an au-
273
thorized move in connection with a change of permanent
station is considered a member without dependents.
‘‘(g) ADVANCE PAYMENT.—A dislocation allowance
payable under this section may be paid in advance.’’.
Subtitle D—Retired Pay, Survivor
Benefits, and Related Matters
SEC. 641. TIME IN WHICH CERTAIN CHANGES IN BENE-
FICIARY UNDER SURVIVOR BENEFIT PLAN
MAY BE MADE.
(a) EXTENSION
OF TIME
FOR CHANGE.—Section
1450(f)(1)(C) of title 10, United States Code, is amended
by inserting before the period at the end the following:
‘‘, except that such a change of election to change a bene-
ficiary under the Plan from a former spouse to a spouse
may be made at any time after the person providing the
annuity remarries (rather than only within one year after
the date on which that person marries)’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply with respect to marriages occur-
ring before, on, or after the date of the enactment of this
Act.
274
Subtitle E—Other Matters
SEC. 651. DEFINITION OF SEA DUTY FOR PURPOSES OF CA-
REER SEA PAY.
Section 305a(d) of title 37, United States Code, is
amended—
(1) in paragraph (1)(A), by striking out ‘‘, ship-
based staff, or ship-based aviation unit’’;
(2) in paragraph (1)(B), by striking out ‘‘or
ship-based staff’’;
(3) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively; and
(4) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) The Secretary concerned may designate duty
performed by a member while serving on a ship the pri-
mary mission of which is accomplished either while under
way or in port as ‘sea duty’ for purposes of this section,
even though the duty is performed while the member is
permanently or temporarily assigned to a ship-based staff
or other unit not covered by paragraph (1).’’.
SEC. 652. LOAN REPAYMENT PROGRAM FOR COMMIS-
SIONED OFFICERS IN CERTAIN HEALTH PRO-
FESSIONS.
(a) Chapter 109 of title 10, United States Code, is
amended by adding at the end the following new section:
275
‘‘§ 2173. Education loan repayment program: commis-
sioned officers in specified health profes-
sions
‘‘(a) AUTHORITY TO REPAY EDUCATION LOANS.—
For the purpose of maintaining adequate numbers of com-
missioned officers of the armed forces on active duty who
are qualified in the various health professions, the Sec-
retary of a military department may repay, in the case
of a person described in subsection (b), a loan that was
used by the person to finance education regarding a health
profession and was obtained from a governmental entity,
private financial institution, school, or other authorized
entity.
‘‘(b) ELIGIBLE PERSONS.—To be eligible to obtain
a loan repayment under this section, a person must—
‘‘(1) satisfy one of the academic requirements
specified in subsection (c);
‘‘(2) be fully qualified for, or hold, an appoint-
ment as a commissioned officer in one of the health
professions; and
‘‘(3) sign a written agreement to serve on active
duty, or, if on active duty, to remain on active duty
for a period in addition to any other incurred active
duty obligation.
‘‘(c) ACADEMIC REQUIREMENTS.—One of the follow-
ing academic requirements must be satisfied for purposes
276
of determining the eligibility of a person for a loan repay-
ment under this section:
‘‘(1) The person must be fully qualified in a
health profession that the Secretary of the military
department concerned has determined to be nec-
essary to meet identified skill shortages.
‘‘(2) The person must be enrolled as a full-time
student in the final year of a course of study at an
accredited educational institution leading to a degree
in a health profession other than medicine or osteo-
pathic medicine.
‘‘(3) The person must be enrolled in the final
year of an approved graduate program leading to
specialty qualification in medicine, dentistry, osteo-
pathic medicine, or other health profession.
‘‘(d) CERTAIN PERSON INELIGIBLE.—Participants of
the Armed Forces Health Professions Scholarship and Fi-
nancial Assistance program under subchapter I of chapter
105 of this title and students of the Uniformed Services
University of the Health Sciences established under sec-
tion 2112 of this title are not eligible for the repayment
of an education loan under this section.
‘‘(e) LOAN REPAYMENTS.—(1) Subject to the limits
established by paragraph (2), a loan repayment under this
section may consist of payment of the principal, interest,
277
and related expenses of a loan obtained by a person de-
scribed in subsection (b) for—
‘‘(A) all educational expenses, comparable to all
educational 
expenses 
recognized 
under 
section
2127(a) of this title for participants in the Armed
Forces Health Professions Scholarship and Finan-
cial Assistance program; and
‘‘(B) reasonable living expenses, not to exceed
expenses comparable to the stipend paid under sec-
tion 2121(d) of this title for participants in the
Armed Forces Health Professions Scholarship and
Financial Assistance program.
‘‘(2) For each year of obligated service that a person
agrees to serve in an agreement described in subsection
(b)(3), the Secretary of the military department concerned
may pay not more than $22,000 on behalf of the person.
This maximum amount shall be increased annually by the
Secretary of Defense effective October 1 of each year by
a percentage equal to the percent increase in the average
annual cost of educational expenses and stipend costs of
a single scholarship under the Armed Forces Health Pro-
fessions Scholarship and Financial Assistance program.
The total amount that may be repaid on behalf of any
person may not exceed an amount determined on the basis
of a four-year active duty service obligation.
278
‘‘(f) ACTIVE DUTY SERVICE OBLIGATION.—(1) A
person entering into an agreement described in subsection
(b)(3) incurs an active duty service obligation. The length
of this obligation shall be determined under regulations
prescribed by the Secretary of Defense, but those regula-
tions may not provide for a period of obligation of less
than one year for each maximum annual amount, or por-
tion thereof, paid on behalf of the person for qualified
loans.
‘‘(2) For persons on active duty before entering into
the agreement, the active duty service obligation shall be
served consecutively to any other incurred obligation.
‘‘(g) EFFECT OF FAILURE TO COMPLETE OBLIGA-
TION.—A commissioned officer who is relieved of the offi-
cer’s active duty obligation under this section before the
completion of that obligation may be given, with or with-
out the consent of the officer, any alternative obligation
comparable to any of the alternative obligations authorized
by section 2123(e) of this title for participants in the
Armed Forces Health Professions Scholarship and Finan-
cial Assistance program.
‘‘(h) REGULATIONS.—The Secretary of Defense shall
prescribe regulations to carry out this section, including
standards for qualified loans and authorized payees and
279
other terms and conditions for the making of loan repay-
ments.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘2173. Education loan repayment program: commissioned officers in specified
health professions.’’.
SEC. 653. CONFORMANCE OF NOAA COMMISSIONED OFFI-
CERS SEPARATION PAY TO SEPARATION PAY
FOR MEMBERS OF OTHER UNIFORMED SERV-
ICES.
(a) ELIMINATION OF LIMITATIONS ON AMOUNT OF
SEPARATION PAY.—Section 9 of the Coast and Geodetic
Survey Commissioned Officers’ Act of 1948 (33 U.S.C.
853h) is amended—
(1) in subsection (b)(1), by striking ‘‘, or
$30,000, whichever is less’’;
(2) in subsection (b)(2), by striking ‘‘, but in no
event more than $15,000’’; and
(3) in subsection (d), by striking ‘‘(1)’’, and by
striking paragraph (2).
(b) WAIVER OF RECOUPMENT OF AMOUNTS WITH-
HELD FOR TAX PURPOSES FROM CERTAIN SEPARATION
PAY.—Section 9(e)(2) of the Coast and Geodetic Survey
Commissioned Officers’ Act of 1948 (33 U.S.C. 853h) is
amended in the first sentence by inserting before the pe-
280
riod at the end the following: ‘‘, less the amount of Federal
income tax withheld from such pay (such withholding
being at the flat withholding rate for Federal income tax
withholding, as in effect pursuant to regulations pre-
scribed under chapter 24 of the Internal Revenue Code
of 1986)’’.
(c) EFFECTIVE
DATE
AND
APPLICATION.—The
amendments made by this section shall take effect on Oc-
tober 1, 1996, and shall apply to payments of separation
pay that are made after September 30, 1997.
SEC. 654. REIMBURSEMENT OF PUBLIC HEALTH SERVICE
OFFICERS FOR ADOPTION EXPENSES.
Section 221(a) of the Public Health Service Act (42
U.S.C. 213a(a)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(16) Section 1052, Reimbursement for adop-
tion expenses.’’.
SEC. 655. PAYMENT OF BACK QUARTERS AND SUBSISTENCE
ALLOWANCES TO WORLD WAR II VETERANS
WHO SERVED AS GUERRILLA FIGHTERS IN
THE PHILIPPINES.
(a) IN GENERAL.—The Secretary of the military de-
partment concerned shall pay, upon request, to an individ-
ual described in subsection (b) the amount determined
with respect to that individual under subsection (c).
281
(b) COVERED INDIVIDUALS.—A payment under sub-
section (a) shall be made to any individual who as a mem-
ber of the Armed Forces during World War II—
(1) was captured within the territory of the
Philippines by Japanese forces;
(2) escaped from captivity; and
(3) served as a guerrilla fighter in the Phil-
ippines during the period from January 1942
through February 1945.
(c) AMOUNT TO BE PAID.—The amount of a pay-
ment under subsection (a) shall be the amount of quarters
and subsistence allowance which accrued to an individual
described in subsection (b) during the period specified in
paragraph (3) of subsection (b) and which was not paid
to that individual. For the purposes of this subsection, the
Secretary of War shall be deemed to have determined that
conditions in the Philippines during the specified period
justified payment under applicable regulations of quarters
and subsistence allowances at the maximum special rate
for duty where emergency conditions existed. The Sec-
retary shall apply interest compounded at the three-month
Treasury bill rate.
(d) PAYMENT TO SURVIVORS.—In the case of any in-
dividual described in subsection (b) who is deceased, pay-
ment under this section with respect to that individual
282
shall be made to that individual’s nearest surviving rel-
ative, as determined by the Secretary concerned.
SEC. 656. SPACE AVAILABLE TRAVEL FOR MEMBERS OF SE-
LECTED RESERVE.
(a) IN GENERAL.—Chapter 157 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 2646. Space available travel: members of Selected
Reserve
‘‘(a) AVAILABILITY.—The Secretary of Defense shall
prescribe regulations to allow members of the Selected Re-
serve in good standing (as determined by the Secretary
concerned), and dependents of such members, to receive
transportation on aircraft of the Department of Defense
on a space available basis under the same terms and con-
ditions as apply to members of the armed forces on active
duty and dependents of such members.
‘‘(b) 
CONDITION
ON
DEPENDENT
TRANSPOR-
TATION.—A dependent of a member of the Selected Re-
serve may be provided transportation under this section
only when the dependent is actually accompanying the
member on the travel.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘2646. Space available travel: members of Selected Reserve.’’.
283
SEC. 657. STUDY ON MILITARY PERSONNEL AT, NEAR, OR
BELOW THE POVERTY LINE.
(a) REQUIREMENT.—The Secretary of Defense shall
conduct a study of members of the Armed Forces and
their dependents who subsist at, near, or below the poverty
line.
(b) MATTERS TO BE INCLUDED.—The study shall
include the following:
(1) An analysis of potential solutions for miti-
gating or eliminating income levels for members of
the Armed Forces that result in certain members
and their dependents subsisting at, near, or below
the poverty line, including potential solutions involv-
ing changes in the systems and rates of—
(A) basic allowance for subsistence for
members of the Armed Forces under section
402 of title 37, United States Code;
(B) basic allowance for quarters for mem-
bers of the Armed Forces under section 403 of
such title; and
(C) variable housing allowance for mem-
bers of the Armed Forces under section 403a of
such title.
(2) An analysis of the effect of the amendments
made by sections 603 and 604 of this Act regarding
the calculation of the basic allowance for subsistence
284
and the consolidation of the basic allowance for
quarters and variable housing allowance on mitigat-
ing or eliminating income levels for members of the
Armed Forces that result in certain members and
their dependents subsisting at, near, or below the
poverty line (as defined in section 673(2) of the Om-
nibus Budget Reconciliation Act of 1981, including
any revision required by that section).
(3) Identification of the populations of members
of the Armed Forces and their dependents most like-
ly to need income support under Federal programs
(and the number of individuals in each population),
including—
(A) the populations living in areas of the
United States where housing costs are notably
high; and
(B) the populations living outside the Unit-
ed States.
(4) The desirability of increasing rates of basic
pay during a defined number of years by varying
percentages depending on pay grade, so as to pro-
vide for greater increases for members in lower pay
grades than for higher pay grades.
(c) SUBMISSION TO CONGRESS.—Not later than 180
days after the date of the enactment of this Act, the Sec-
285
retary shall submit to Congress the findings of the study
conducted under subsection (a).
SEC. 658. IMPLEMENTATION OF DEPARTMENT OF DEFENSE
SUPPLEMENTAL FOOD PROGRAM FOR MILI-
TARY PERSONNEL OUTSIDE THE UNITED
STATES.
(a) FUNDING.—Section 1060a(b) of title 10, United
States Code, is amended by adding at the end the follow-
ing new sentence: ‘‘Pending receipt of such funds from
the Secretary of Agriculture for any fiscal year, the Sec-
retary of Defense may use funds appropriated to the De-
partment of Defense for that fiscal year for operations and
maintenance to carry out, and to avoid delay in implemen-
tation of, the program referred to in subsection (a) during
any fiscal year.’’.
(b) SUBMISSION OF PLAN TO CONGRESS.—Not later
than 90 days after the date of the enactment of this Act,
the Secretary of Defense shall submit to Congress a plan
for implementing the special supplemental food program
under section 1060a of title 10, United States Code, as
amended by subsection (a).
286
TITLE VII—HEALTH CARE
PROVISIONS
Subtitle A—Health Care Services
SEC. 701. EXPANSION OF RETIREE DENTAL INSURANCE
PLAN TO INCLUDE SURVIVING SPOUSE AND
CHILD DEPENDENTS OF CERTAIN DECEASED
MEMBERS.
Section 1076c(b)(4) of title 10, United States Code,
is amended—
(1) in subparagraph (A)—
(A) by striking out ‘‘dies’’ and inserting in
lieu thereof ‘‘died’’; and
(B) by striking out ‘‘or’’ at the end of the
subparagraph;
(2) by striking out the period at the end of sub-
paragraph (B) and inserting in lieu thereof ‘‘; or’’;
and
(3) by adding at the end the following new sub-
paragraph:
‘‘(C) who died while on active duty for a
period of more than 30 days and whose eligible
dependents are not eligible, or no longer eligi-
ble, for dental benefits under section 1076a of
this title pursuant to subsection (i)(2) of such
section.’’.
287
SEC. 702. PROVISION OF PROSTHETIC DEVICES TO COV-
ERED BENEFICIARIES.
(a) INCLUSION AMONG AUTHORIZED CARE.—Sub-
section (a) of section 1077 of title 10, United States Code,
is amended by adding at the end the following new para-
graph:
‘‘(15) Prosthetic devices, as determined by the
Secretary of Defense to be necessary because of sig-
nificant conditions resulting from trauma, congenital
anomalies, or disease.’’.
(b) CONFORMING AMENDMENT.—Subsection (b) of
such section is amended by striking out paragraph (2) and
inserting in lieu thereof the following new paragraph:
‘‘(2) Hearing aids, orthopedic footwear, and
spectacles, except that, outside of the United States
and at stations inside the United States where ade-
quate civilian facilities are unavailable, such items
may be sold to dependents at cost to the United
States.’’.
Subtitle B—TRICARE Program
SEC. 711. ADDITION OF DEFINITION OF TRICARE PROGRAM
TO TITLE 10.
Section 1072 of title 10, United States Code, is
amended by adding at the end the following new para-
graph:
288
‘‘(7) The term ‘TRICARE program’ means the
managed health care program that is established by
the Department of Defense under the authority of
this chapter, principally section 1097 of this title,
and includes the competitive selection of contractors
to financially underwrite the delivery of health care
services under the Civilian Health and Medical Pro-
gram of the Uniformed Services.’’.
SEC. 712. PLAN FOR EXPANSION OF MANAGED CARE OP-
TION OF TRICARE PROGRAM.
(a) EXPANSION PLAN REQUIRED.—The Secretary of
Defense shall prepare a plan for the expansion of the man-
aged care option of the TRICARE program, known as
TRICARE Prime, into areas of the United States located
outside of the catchment areas of medical treatment facili-
ties of the uniformed services, but in which the managed
care option is a cost-effective alternative because of—
(1) the significant number of covered bene-
ficiaries under chapter 55 of title 10, United States
Code, including retired members of the Armed
Forces and their dependents, who reside in the
areas; and
(2) the presence in the areas of sufficient non-
military health care provider networks.
289
(b) ALTERNATIVES.—As an alternative to expansion
of the managed care option of the TRICARE program to
areas of the United States in which there is few or no
nonmilitary health care provider networks, the Secretary
shall include in the plan required under subsection (a) an
evaluation of the feasibility and cost-effectiveness of pro-
viding a member of the Armed Forces on active duty who
is stationed in such an area, or whose dependents reside
in such an area, with one or both of the following:
(1) A monetary stipend to assist the member in
obtaining health care services for the member or the
member’s dependents.
(2) A reduction in the cost-sharing require-
ments applicable to the TRICARE program options
otherwise available to the member to match the re-
duced cost-sharing responsibilities of the managed
care option of the TRICARE program.
(c) SUBMISSION OF PLAN.—Not later than March 1,
1998, the Secretary shall submit to Congress the plan re-
quired under subsection (a).
290
Subtitle C—Uniformed Services
Treatment Facilities
SEC. 721. IMPLEMENTATION OF DESIGNATED PROVIDER
AGREEMENTS FOR UNIFORMED SERVICES
TREATMENT FACILITIES.
(a) COMMENCEMENT OF HEALTH CARE SERVICES
UNDER AGREEMENT.—Subsection (c) of section 722 of
the National Defense Authorization Act for Fiscal Year
1997 (Public Law 104–201, 10 U.S.C. 1073 note) is
amended—
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B);
(2) by inserting ‘‘(1)’’ before ‘‘Unless’’; and
(3) by adding at the end the following new
paragraph:
‘‘(2) The Secretary may modify the effective date es-
tablished under paragraph (1) for an agreement to permit
a transition period of not more than six months between
the date on which the agreement is executed by the parties
and the date on which the designated provider commences
the delivery of health care services under the agreement.’’.
(b) TEMPORARY CONTINUATION OF EXISTING PAR-
TICIPATION AGREEMENTS.—Subsection (d) of such sec-
tion is amended by inserting before the period at the end
291
the following: ‘‘, including any transitional period provided
by the Secretary under paragraph (2) of such subsection’’.
SEC. 722. LIMITATION ON TOTAL PAYMENTS.
Section 726(b) of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104–201, 10 U.S.C.
1073 note) is amended by adding at the end the following
new sentence: ‘‘In establishing the ceiling rate for enroll-
ees with the designated providers who are also eligible for
the Civilian Health and Medical Program of the Uni-
formed Services, the Secretary of Defense shall take into
account the health status of the enrollees.’’.
SEC. 723. CONTINUED ACQUISITION OF REDUCED-COST
DRUGS.
Section 722 of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104–201; 10 U.S.C.
1073 note) is amended by adding at the end the following
new subsection:
‘‘(g) CONTINUED ACQUISITION OF REDUCED-COST
DRUGS.—A designated provider shall be treated as part
of the Department of Defense for purposes of section 8126
of title 38, United States Code, in connection with the pro-
vision by the designated provider of health care services
to covered beneficiaries pursuant to the participation
agreement of the designated provider under section 718(c)
of the National Defense Authorization Act for Fiscal Year
292
1991 (Public Law 101–510; 42 U.S.C. 248c note) or pur-
suant to the agreement entered into under subsection
(b).’’.
Subtitle D—Other Changes to Ex-
isting Laws Regarding Health
Care Management
SEC. 731. WAIVER OR REDUCTION OF COPAYMENTS UNDER
OVERSEAS DENTAL PROGRAM.
Section 1076a(h) of title 10, United States Code, is
amended—
(1) in the first sentence, by striking out ‘‘Sec-
retary’’ and inserting in lieu thereof ‘‘Secretary of
Defense’’; and
(2) by adding at the end the following new sen-
tence: ‘‘In the case of such an overseas dental plan,
the Secretary may waive or reduce the copayments
otherwise required by subsection (e) to the extent
the Secretary determines appropriate for the effec-
tive and efficient operation of the plan.’’.
SEC. 732. PREMIUM COLLECTION REQUIREMENTS FOR
MEDICAL AND DENTAL INSURANCE PRO-
GRAMS.
(a) SELECTED RESERVE DENTAL INSURANCE.—
Paragraph (3) of section 1076b(b) of title 10, United
States Code, is amended to read as follows:
293
‘‘(3) The Secretary of Defense shall establish proce-
dures for the collection of the member’s share of the pre-
mium for coverage by the dental insurance plan. Not later
than October 1, 1998, the Secretary shall permit a mem-
ber to pay the member’s share of the premium through
a deduction and withholding from basic pay payable to the
member for inactive duty training or basic pay payable
to the member for active duty.’’.
(b) RETIREE DENTAL INSURANCE PLAN.—Para-
graph (2) of section 1076c(c) of such title is amended to
read as follows:
‘‘(2) In the regulations prescribed under subsection
(h), the Secretary of Defense shall establish procedures
for the payment by enrolled members and by other en-
rolled covered beneficiaries of premiums charged for cov-
erage by the dental insurance plan. Not later than October
1, 1998, the Secretary shall permit a member enrolled in
the plan and entitled to retired pay to pay the member’s
share of the premium through a deduction and withhold-
ing from the retired pay of the member.’’.
(c) IMPLEMENTATION PLAN.—Not later than March
1, 1998, the Secretary of Defense shall submit to Congress
a plan to permit, not later than October 1, 1998—
(1) an enrollee in the Selected Reserve dental
insurance plan authorized under section 1076b of
294
title 10, United States Code, to pay the enrollee’s
share of the premium for such insurance through a
deduction and withholding from basic pay payable to
the enrollee;
(2) a retired member of the uniformed services
enrolled in the dental insurance plan authorized
under section 1076c of such title to pay the enroll-
ee’s share of the premium for such insurance
through a deduction and withholding from retired
pay payable to the enrollee; and
(3) a retired member of the uniformed services
enrolled in the managed care option of the
TRICARE program known as TRICARE Prime to
pay the enrollee’s share of the premium for such op-
tion through a deduction and withholding from re-
tired pay payable to the enrollee.
SEC. 733. CONSISTENCY BETWEEN CHAMPUS AND MEDI-
CARE IN PAYMENT RATES FOR SERVICES.
(a) 
CONFORMITY
BETWEEN
RATES.—Section
1079(h) of title 10, United States Code, is amended by
striking out paragraphs (1), (2), and (3) and inserting in
lieu thereof the following new paragraph:
‘‘(1) Except as provided in paragraphs (2) and (3),
payment for a charge for services by an individual health
care professional (or other noninstitutional health care
295
provider) for which a claim is submitted under a plan con-
tracted for under subsection (a) shall be equal to an
amount determined to be appropriate, to the extent prac-
ticable, in accordance with the same reimbursement rules
as apply to payments for similar services under title XVIII
of the Social Security Act (42 U.S.C. 1395 et seq.). The
Secretary of Defense shall determine the appropriate pay-
ment amount under this paragraph in consultation with
the other administering Secretaries.’’.
(b) REDUCED RATES AUTHORIZED.—Paragraph (5)
of such section is amended by adding at the end the follow-
ing new sentence: ‘‘With the consent of the health care
provider, the Secretary is also authorized to reduce the
authorized payment for certain health care services below
the amount otherwise required by the payment limitations
under paragraph (1).’’.
(c) CONFORMING AMENDMENTS.—Such section is
further amended—
(1) in paragraph (5), by striking out ‘‘para-
graph (4), the Secretary’’ and inserting in lieu there-
of ‘‘paragraph (2), the Secretary of Defense’’; and
(2) by redesignating paragraphs (4), (5), and
(6) as paragraphs (2), (3), and (4), respectively.
296
SEC. 734. USE OF PERSONAL SERVICES CONTRACTS FOR
PROVISION OF HEALTH CARE SERVICES AND
LEGAL PROTECTION FOR PROVIDERS.
(a) USE OF CONTRACTS OUTSIDE MEDICAL TREAT-
MENT FACILITIES.—Section 1091(a) of title 10, United
States Code, is amended—
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary of
Defense’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) The Secretary of Defense may also enter into
personal services contracts to carry out other health care
responsibilities of the Secretary, such as the provision of
medical screening examinations at Military Entrance
Processing Stations, at locations outside medical treat-
ment facilities, as determined necessary pursuant to regu-
lations issued by the Secretary.’’.
(b) DEFENSE OF SUITS.—Section 1089 of such title
is amended—
(1) in subsection (a), by adding at the end the
following new sentence: ‘‘This subsection shall also
apply if the physician, dentist, nurse, pharmacist, or
paramedical or other supporting personnel (or the
estate of such person) involved is serving under a
personal services contract entered into by the Sec-
297
retary of Defense under section 1091 of this title.’’;
and
(2) in subsection (f)—
(A) by inserting ‘‘(1)’’ after ‘‘(f)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(2) With respect to the Secretary of Defense and
the Armed Forces Retirement Home Board, the authority
provided by paragraph (1) also includes the authority to
provide for reasonable attorney’s fees for persons de-
scribed in subsection (a), as determined necessary pursu-
ant to regulations issued by the head of the agency con-
cerned.’’.
SEC. 735. PORTABILITY OF STATE LICENSES FOR DEPART-
MENT OF DEFENSE HEALTH CARE PROFES-
SIONALS.
Section 1094 of title 10, United States Code, is
amended—
(1) by redesignating subsection (d) as sub-
section (e); and
(2) by inserting after subsection (c) the follow-
ing new subsection:
‘‘(d)(1) Notwithstanding any law regarding the licen-
sure of health care providers, a health-care professional
described in paragraph (2) may practice the health profes-
298
sion or professions of the health-care professional in any
State, the District of Columbia, or a Commonwealth, terri-
tory, or possession of the United States, regardless of
whether the practice occurs in a health care facility of the
Department of Defense, a civilian facility affiliated with
the Department of Defense, or any other location author-
ized by the Secretary of Defense .
‘‘(2) A health-care professional referred to in para-
graph (1) is a member of the armed forces who—
‘‘(A) has a current license to practice medicine,
osteopathic medicine, dentistry, or another health
profession; and
‘‘(B) is performing authorized duties for the
Department of Defense.’’.
SEC. 736. STANDARD FORM AND REQUIREMENTS REGARD-
ING CLAIMS FOR PAYMENT FOR SERVICES.
(a) CLARIFICATION OF EXISTING REQUIREMENTS.—
Section 1106 of title 10, United States Code, is amended
to read as follows:
‘‘§ 1106. Submittal of claims: standard form; time lim-
its
‘‘(a) STANDARD FORM.—The Secretary of Defense,
after consultation with the other administering Secretar-
ies, shall prescribe by regulation a standard form for the
299
submission of claims for the payment of health care serv-
ices provided under this chapter.
‘‘(b) TIME FOR SUBMISSION.—A claim for payment
for services shall be submitted as provided in such regula-
tions not later than one year after the services are pro-
vided.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 55 of title 10, United States
Code, is amended by striking out the item relating to sec-
tion 1106 and inserting in lieu thereof the following new
item:
‘‘1106. Submittal of claims: standard form; time limits.’’.
SEC. 737. MEDICAL PERSONNEL CONSCIENCE CLAUSE.
(a) SECRETARY
OF DEFENSE POLICY.—The Sec-
retary of Defense shall establish a uniform policy for the
Army, Navy, and Air Force establishing the circumstances
under which covered members (as defined in subsection
(d)) of the Army, Navy, and Air Force may refuse, based
on conscience, to perform an abortion (or participate in
the performance of an abortion) or provide a covered fam-
ily planning service (or participate in the provision of such
a service).
(b) CONSCIENCE CLAUSE.—(1) The policy estab-
lished under subsection (a) shall provide that a member
of the Army, Navy, or Air Force who is a covered member
may not be required to perform an abortion (or participate
300
in the performance of an abortion), or to provide a covered
family planning service (or participate in the provision of
such a service), if the member believes that to do so would
be wrong on moral, ethical or religious grounds.
(2) Paragraph (1) does not apply in a case in which
refusal to perform an abortion (or participate in the per-
formance of an abortion) or provide a covered family plan-
ning service would pose a life-threatening risk to the pa-
tient.
(c) COVERED FAMILY PLANNING SERVICES.—For
the purposes of this section, a covered family planning
service is any of the following:
(1) Contraceptive services, not limited to the
prescription or provision of a pharmaceutical prepa-
ration, device, or chemical method.
(2) Surgical sterilization.
(d) COVERED MEMBER.—In this section, the term
‘‘covered member’’ means a member of the Army, Navy,
or Air Force who—
(1) in the case of the Army, is a member of the
Medical Corps, Dental Corps, Nurse Corps, Medical
Service Corps, Veterinary Corps, or Army Medical
Specialist Corps or is an enlisted member directly
engaged in or directly supporting medically related
activities;
301
(2) in the case of the Navy, is a member of the
Medical Corps, Dental Corps, Nurse Corps, or Medi-
cal Service Corps or is an enlisted member directly
engaged in or directly supporting medically related
activities; and
(3) in the case of the Air Force, is designated
as a medical officer, dental officer, Air Force nurse,
medical service officer, or biomedical science officer
or is an enlisted member directly engaged in or di-
rectly supporting medically related activities.
(e) EFFECTIVE DATE.—The policy established pursu-
ant to subsection (a) shall apply with respect to any re-
fusal on or after the date of the enactment of this Act
to perform an abortion (or participate in the performance
of an abortion) or to provide a covered family planning
service.
Subtitle E—Other Matters
SEC. 741. CONTINUED ADMISSION OF CIVILIANS AS STU-
DENTS IN PHYSICIAN ASSISTANT TRAINING
PROGRAM OF ARMY MEDICAL DEPARTMENT.
(a) CIVILIAN ATTENDANCE.—(1) Chapter 407 of title
10, United States Code, is amended by adding at the end
the following new section:
302
‘‘§ 4416. Academy of Health Sciences: admission of ci-
vilians in physician assistant training
program
‘‘(a) RECIPROCAL AGREEMENTS WITH COLLEGES.—
The Secretary of the Army may enter into an agreement
with an accredited institution of higher education under
which students of the institution may attend the physician
assistant training program conducted by the Army Medi-
cal Department at the Academy of Health Sciences at
Fort Sam Houston, Texas, during the didactic portion of
the program. In exchange for the admission of such stu-
dents, the institution of higher education shall agree to
provide such academic services as the Secretary and the
institution consider to be appropriate to support the physi-
cian assistant training program at the Academy. The Sec-
retary shall ensure that the Army Medical Department
does not incur any additional costs as a result of the
agreement than the Department would incur to obtain
such academic services in the absence of the agreement.
‘‘(b) SELECTION OF STUDENTS.—The attendance of
civilian students at the Academy pursuant to an agree-
ment under subsection (a) may not result in a decrease
in the number of members of the armed forces enrolled
in the physician assistant training program. In consulta-
tion with the institution of higher education that is a party
to the agreement, the Secretary shall establish qualifica-
303
tions and methods of selection for students to receive in-
struction at the Academy. The qualifications established
shall be comparable to those generally required for admis-
sion to the physician assistant training program at the
Academy.
‘‘(c) RULES OF ATTENDANCE.—Except as the Sec-
retary determines necessary, a civilian student who re-
ceives instruction at the Academy pursuant to an agree-
ment entered into under subsection (a) shall be subject
to the same regulations governing attendance, discipline,
discharge, and dismissal as apply to other persons attend-
ing the Academy.
‘‘(d) REPORT.—For each year in which an agreement
under subsection (a) is in effect, the Secretary shall sub-
mit to Congress a report specifying the number of civilian
students who received instruction at the Academy under
the agreement during the period covered by the report and
accessing the benefits to the United States of the agree-
ment.
‘‘(e) ACADEMY DEFINED.—In this section, the term
‘Academy’ means the Academy of Health Sciences of the
Army Medical Department at Fort Sam Houston,
Texas.’’.
304
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘4416. Academy of Health Sciences: admission of civilians in physician assistant
training program.’’.
(b) EFFECT ON EXISTING DEMONSTRATION PRO-
GRAM.—An agreement entered into under the demonstra-
tion program for the admission of civilians as physician
assistant students at the Academy of Health Sciences,
Fort Sam Houston, Texas, established pursuant to section
732 of the National Defense Authorization Act for Fiscal
Year 1995 (Public Law 103–337; 108 Stat. 2810) shall
be treated as an agreement entered into under section
4416 of title 10, United States Code (as added by sub-
section (a)). The agreement may be extended in such man-
ner and for such period as the parties to the agreement
consider appropriate consistent with such section 4416.
SEC. 742. EMERGENCY HEALTH CARE IN CONNECTION
WITH OVERSEAS ACTIVITIES OF ON-SITE IN-
SPECTION AGENCY OF DEPARTMENT OF DE-
FENSE.
(a) PAYMENT
OF
EXPENSES
FOR
EMERGENCY
HEALTH CARE.—Chapter 152 of title 10, United States
Code, is amended by inserting after section 2549 the fol-
lowing new section:
305
‘‘§ 2549a. Emergency health care: overseas activities
of On-Site Inspection Agency
‘‘(a) AUTHORITY TO PAY EXPENSES.—From funds
appropriated for the necessary expenses of the On-Site In-
spection Agency of the Department of Defense, the Sec-
retary of Defense may pay or reimburse an employee of
the Agency, a member of the uniformed services or a civil-
ian employee assigned or detailed to the Agency, or an
employee of a contractor operating under a contract with
the Agency, for emergency health care services obtained
by the employee, member, or contractor employee while
permanently or temporarily on duty in a state of the
former Soviet Union or the former Warsaw Pact.
‘‘(b) INITIAL DEPOSITS.—The expenses for emer-
gency health care that may be paid or reimbursed under
subsection (a) include initial deposits for emergency care
and inpatient care.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 2549 the following new
item:
‘‘2549a. Emergency health care: overseas activities of On-Site Inspection Agen-
cy.’’.
306
SEC. 743. COMPTROLLER GENERAL STUDY OF ADEQUACY
AND 
EFFECT 
OF 
MAXIMUM 
ALLOWABLE
CHARGES 
FOR 
PHYSICIANS 
UNDER
CHAMPUS.
(a) STUDY REQUIRED.—The Comptroller General
shall conduct a study regarding the adequacy of the maxi-
mum allowable charges for physicians established under
the Civilian Health and Medical Program of the Uni-
formed Services (CHAMPUS) and the effect of such
charges on the participation of physicians in CHAMPUS.
The study shall include an evaluation of the following:
(1) The methodology used by the Secretary of
Defense to establish maximum allowable charges for
physicians under CHAMPUS, and whether such
methodology conforms to the requirements of section
1079(h) of title 10, United States Code.
(2) The differences between the established
charges under CHAMPUS and reimbursement rates
for similar services under title XVIII of the Social
Security Act and other health care programs.
(3) The basis for physician complaints that the
CHAMPUS established charges are too low.
(4) The difficultly of CHAMPUS in ensuring
physician compliance with the CHAMPUS estab-
lished charges in the absence of legal mechanisms to
307
enforce compliance, and the effect of noncompliance
on patient out-of-pocket expenses.
(5) The effect of the established charges under
CHAMPUS on the participation of physicians in
CHAMPUS, and the extent and success of Depart-
ment of Defense efforts to increase physician partici-
pation in areas with low participation rates.
(b) SUBMISSION OF REPORT.—Not later than March
1, 1998, the Comptroller General shall submit to Congress
a report containing the results of the study required by
subsection (a).
SEC. 744. COMPTROLLER GENERAL STUDY OF DEPART-
MENT OF DEFENSE PHARMACY PROGRAMS.
Not later than March 31, 1998, the Comptroller Gen-
eral shall submit to Congress a study evaluating the phar-
macy programs of the Department of Defense. The study
shall include an examination of the following:
(1) The merits and feasibility of establishing a
uniform formulary for military treatment facility
pharmacies and civilian contractor pharmacy benefit
administrators.
(2) The extent of, and cost impacts from, mili-
tary treatment facility pharmacies denying covered
beneficiaries under chapter 55 of title 10, United
308
States Code, pharmacy care access and shifting such
beneficiaries to other sources of pharmacy care.
(3) The merits and feasibility of implementing
other pharmacy benefit management best practices
at military treatment facility and civilian contractor
pharmacies.
(4) The cost impacts of TRICARE program
contractors being unable to procure pharmaceuticals
at discounted prices pursuant to section 8126 of title
38, United States Code, and potential ways to in-
crease the discounts available to TRICARE program
contractors, with appropriate controls.
SEC. 745. COMPTROLLER GENERAL STUDY OF NAVY GRAD-
UATE MEDICAL EDUCATION PROGRAM.
(a) STUDY REQUIRED.—The Comptroller General
shall conduct a study to evaluate the validity of the rec-
ommendations made by the Medical Education Policy
Council of the Bureau of Medicine and Surgery of the
Navy regarding restructuring the graduate medical edu-
cation program of the Department of the Navy. The study
shall specifically address the Council’s recommendations
relating to residency training conducted at Naval Medical
Center, Portsmouth, Virginia, and National Naval Medical
Center, Bethesda, Maryland.
309
(b) SUBMISSION OF REPORT.—Not later than March
1, 1998, the Comptroller General shall submit to Congress
and the Secretary of the Navy a report containing the re-
sults of the study required by subsection (a).
(c) MORATORIUM ON RESTRUCTURING.—Until the
report required by subsection (b) is submitted to Congress,
the Secretary of the Navy may not make any change in
the types of residency programs conducted under the Navy
graduate medical education program or the locations at
which such residency programs are conducted or otherwise
restructure the Navy graduate medical education pro-
gram.
SEC. 746. STUDY OF EXPANSION OF PHARMACEUTICALS BY
MAIL PROGRAM TO INCLUDE ADDITIONAL
MEDICARE-ELIGIBLE 
COVERED 
BENE-
FICIARIES.
Not later than six months after the date of the enact-
ment of this Act, the Secretary of Defense shall submit
to Congress a report regarding the feasibility and advis-
ability of expanding the category of persons eligible to par-
ticipate in the demonstration project for the purchase of
prescription pharmaceuticals by mail, as required by sec-
tion 702(a) of the National Defense Authorization Act for
Fiscal Year 1993 (Public Law 102–484; 10 U.S.C. 1079
note), to include persons referred to in section 1086(c) of
310
title 10, United States Code, who are covered by sub-
section (d)(1) of such section and reside in the United
States outside of the catchment area of a medical treat-
ment facility of the uniformed services.
SEC. 747. COMPTROLLER GENERAL STUDY OF REQUIRE-
MENT FOR MILITARY MEDICAL FACILITIES IN
NATIONAL CAPITAL REGION.
(a) STUDY REQUIRED.—The Comptroller General
shall conduct a study to evaluate the requirement for
Army, Navy, and Air Force medical facilities in the Na-
tional Capital Region (as defined in section 2674(f)(2) of
title 10, United States Code). The study shall—
(1) specifically address requirements with re-
spect to geography, facilities, integrated residencies,
and medical environments; and
(2) provide specific recommendations with re-
spect to how medical and health care provided by
these facilities may be better coordinated to more ef-
ficiently serve, throughout the National Capital Re-
gion, members of the Armed Forces on active duty
and covered beneficiaries under chapter 55 of title
10, United States Code.
(b) SUBMISSION OF REPORT.—Not later than six
months after the date of the enactment of this Act, the
Comptroller General shall submit to Congress and the Sec-
311
retary of Defense a report containing the results of the
study required by subsection (a).
Subtitle F—Persian Gulf Illness
SEC. 751. DEFINITIONS.
For purposes of this subtitle:
(1) The term ‘‘Gulf War illness’’ means any one
of the complex of illnesses and symptoms that might
have been contracted by members of the Armed
Forces as a result of service in the Southwest Asia
theater of operations during the Persian Gulf War.
(2) The term ‘‘Persian Gulf War’’ has the
meaning given that term in section 101 of title 38,
United States Code.
(3) The term ‘‘Persian Gulf veteran’’ means an
individual who served on active duty in the Armed
Forces in the Southwest Asia theater of operations
during the Persian Gulf War.
(4) The term ‘‘contingency operation’’ has the
meaning given that term in section 101(a) of title
10, United States Code, and includes a humani-
tarian operation, peacekeeping operation, or similar
operation.
312
SEC. 752. PLAN FOR HEALTH CARE SERVICES FOR PERSIAN
GULF VETERANS.
(a) PLAN REQUIRED.—The Secretary of Defense and
the Secretary of Veterans Affairs, acting jointly, shall pre-
pare a plan to provide appropriate health care to Persian
Gulf veterans (and their dependents) who suffer from a
Gulf War illness.
(b) CONTENTS OF PLAN.—In preparing the plan, the
Secretaries shall—
(1) use the presumptions of service connection
and illness specified in paragraphs (1) and (2) of
section 721(d) of the National Defense Authoriza-
tion Act for Fiscal Year 1995 (Public Law 103–337;
10 U.S.C. 1074 note) to determine the Persian Gulf
veterans (and the dependents of Persian Gulf veter-
ans) who should be covered by the plan;
(2) consider the need and methods available to
provide health care services to Persian Gulf veterans
who are no longer on active duty in the Armed
Forces, such as Persian Gulf veterans who are mem-
bers of the reserve components and Persian Gulf
veterans who have been separated from the Armed
Forces; and
(3) estimate the costs to the Government to
provide full or partial health care services under the
313
plan to covered Persian Gulf veterans (and their cov-
ered dependents).
(c) FOLLOW-UP TREATMENT.—The plan required by
subsection (a) shall specifically address the measures to
be used to monitor the quality, appropriateness, and effec-
tiveness of, and patient satisfaction with, health care serv-
ices provided to Persian Gulf veterans after their initial
medical examination as part of registration in the Persian
Gulf War Veterans Health Registry or the Comprehensive
Clinical Evaluation Program.
(d) SUBMISSION OF PLAN.—Not later than March 1,
1998, the Secretaries shall submit to Congress the plan
required by subsection (a).
SEC. 753. COMPTROLLER GENERAL STUDY OF REVISED
DISABILITY CRITERIA FOR PHYSICAL EVAL-
UATION BOARDS.
Not later than March 1, 1998, the Comptroller Gen-
eral shall submit to Congress a study evaluating the revi-
sions made by the Secretary of Defense to the criteria
used by Physical Evaluation Boards to set disability rat-
ings for members of the Armed Forces who are no longer
medically qualified for continuation on active duty so as
to ensure accurate disability ratings related to a diagnosis
of a Persian Gulf illness. Such revisions were required by
section 721(e) of the National Defense Authorization Act
314
for Fiscal Year 1995 (Public Law 103–337; 10 U.S.C.
1074 note).
SEC. 754. IMPROVED MEDICAL TRACKING SYSTEM FOR
MEMBERS DEPLOYED OVERSEAS IN CONTIN-
GENCY OR COMBAT OPERATIONS.
(a) SYSTEM REQUIRED.—Chapter 55 of title 10,
United States Code, is amended by inserting after section
1074d the following new section:
‘‘§ 1074e: Medical tracking system for members de-
ployed overseas
‘‘(a) SYSTEM REQUIRED.—The Secretary of Defense
shall establish a system to assess the medical condition
of members of the armed forces (including members of the
reserve components) who are deployed outside the United
States or its territories or possessions as part of a contin-
gency operation (including a humanitarian operation,
peacekeeping operation, or similar operation) or combat
operation.
‘‘(b) ELEMENTS OF SYSTEM.—The system shall in-
clude the use of predeployment medical examinations and
postdeployment medical examinations (including an as-
sessment of mental health and the drawing of blood sam-
ples) to accurately record the medical condition of mem-
bers before their deployment and any changes in their
medical condition during the course of their deployment.
315
The postdeployment examination shall be conducted when
the member is redeployed or otherwise leaves an area in
which the system is in operation (or as soon as possible
thereafter).
‘‘(c) RECORDKEEPING.—The results of all medical
examinations conducted under the system, records of all
health care services (including immunizations) received by
members described in subsection (a) in anticipation of
their deployment or during the course of their deployment,
and records of events occurring in the deployment area
that may affect the health of such members shall be re-
tained and maintained in a centralized location to improve
future access to the records.
‘‘(d) QUALITY ASSURANCE.—The Secretary of De-
fense shall establish a quality assurance program to evalu-
ate the success of the system in ensuring that members
described in subsection (a) receive predeployment medical
examinations and postdeployment medical examinations
and that the recordkeeping requirements are met.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 1074d the following new
item:
‘‘1074e: Medical tracking system for members deployed overseas.’’.
316
SEC. 755. REPORT ON PLANS TO TRACK LOCATION OF MEM-
BERS IN A THEATER OF OPERATIONS.
Not later than March 1, 1998, the Secretary of De-
fense shall submit to Congress a report containing a plan
for collecting and maintaining information regarding the
daily location of units of the Armed Forces, and to the
extent practicable individual members of such units, serv-
ing in a theater of operations during a contingency oper-
ation or combat operation.
SEC. 756. REPORT ON PLANS TO IMPROVE DETECTION AND
MONITORING OF CHEMICAL, BIOLOGICAL,
AND SIMILAR HAZARDS IN A THEATER OF OP-
ERATIONS.
Not later than March 1, 1998, the Secretary of De-
fense shall submit to Congress a report containing a plan
regarding the deployment, in a theater of operations dur-
ing a contingency operation or combat operation, of a spe-
cialized unit of the Armed Forces with the capability and
expertise to detect and monitor the presence of chemical,
biological, and similar hazards to which members of the
Armed Forces may be exposed.
SEC. 757. NOTICE OF USE OF INVESTIGATIONAL NEW
DRUGS.
(a) NOTICE REQUIREMENTS.—Chapter 55 of title 10,
United States Code, is amended by adding at the end the
following new section:
317
‘‘§ 1107. Notice of use of investigational new drugs
‘‘(a) NOTICE REQUIRED.—(1) Whenever the Sec-
retary of Defense requests or requires a member of the
armed forces to receive an investigational new drug, the
Secretary shall provide the member with notice containing
the information specified in subsection (d).
‘‘(2) The Secretary shall also ensure that medical
providers who administer an investigational new drug or
who are likely to treat members who receive an investiga-
tional new drug receive the information required to be pro-
vided under paragraphs (3) and (4) of subsection (d).
‘‘(b) TIME FOR NOTICE.—The notice required to be
provided to a member under subsection (a)(1) shall be pro-
vided before the investigational new drug is first adminis-
tered to the member, if practicable, but in no case later
than 30 days after the investigational new drug is first
administered to the member.
‘‘(c) FORM OF NOTICE.—The notice required under
subsection (a)(1) shall be provided in writing unless the
Secretary of Defense determines that the use of written
notice is impractical because of the number of members
receiving the investigational new drug, time constraints,
or similar reasons. If the Secretary provides notice under
subsection (a)(1) in a form other than in writing, the Sec-
retary shall submit to Congress a report describing the
318
notification method used and the reasons for the use of
the alternative method.
‘‘(d) CONTENT
OF NOTICE.—The notice required
under subsection (a)(1) shall include the following:
‘‘(1) Clear notice that drug being administered
is an investigational new drug.
‘‘(2) The reasons why the investigational new
drug is being administered.
‘‘(3) Information regarding the possible side ef-
fects of the investigational new drug, including any
known side effects possible as a result of the inter-
action of the investigational new drug with other
drugs or treatments being administered to the mem-
bers receiving the investigational new drug.
‘‘(4) Such other information that, as a condi-
tion of authorizing the use of the investigational new
drug, the Secretary of Health and Human Services
may require to be disclosed.
‘‘(e) RECORDS OF USE.—The Secretary of Defense
shall ensure that the medical records of members accu-
rately document the receipt by members of any investiga-
tional new drug and the notice required by subsection (d).
‘‘(f) DEFINITION.—In this section, the term ‘inves-
tigational new drug’ means a drug covered by section
319
505(i) of the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 355(i)).’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘1107. Notice of use of investigational new drugs.’’.
SEC. 758. REPORT ON EFFECTIVENESS OF RESEARCH EF-
FORTS REGARDING GULF WAR ILLNESSES.
Not later than March 1, 1998, the Secretary of De-
fense shall submit to Congress a report evaluating the ef-
fectiveness of medical research initiatives regarding Gulf
War illnesses. The report shall address the following:
(1) The type and effectiveness of previous re-
search efforts, including the activities undertaken
pursuant to section 743 of the National Defense Au-
thorization Act for Fiscal Year 1997 (Public Law
104–201; 10 U.S.C. 1074 note), section 722 of the
National Defense Authorization Act for Fiscal Year
1995 (Public Law 103–337; 10 U.S.C. 1074 note),
and sections 270 and 271 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law
103–160; 110 Stat. 1613).
(2) Recommendations regarding additional re-
search regarding Gulf War illnesses, including re-
search regarding the nature and causes of Gulf War
320
illnesses and appropriate treatments for such ill-
nesses.
(3) The adequacy of Federal funding and the
need for additional funding for medical research ini-
tiatives regarding Gulf War illnesses.
SEC. 759. PERSIAN GULF ILLNESS CLINICAL TRIALS PRO-
GRAM.
(a) FINDINGS.—Congress finds the following:
(1) There are many ongoing studies that inves-
tigate risk factors which may be associated with the
health problems experienced by Persian Gulf veter-
ans; however, there have been no studies which ex-
amine health outcomes and the effectiveness of the
treatment received by such veterans.
(2) The medical literature and testimony pre-
sented in hearings on Gulf War illnesses indicate
there are therapies, such as cognitive behavioral
therapy, which have been effective in treating pa-
tients with symptoms similar to those seen in many
Persian Gulf veterans.
(b) ESTABLISHMENT OF PROGRAM.—The Secretary
of Defense and the Secretary of Veterans Affairs, acting
jointly, shall establish a program of cooperative clinical
trials at multiple sites to assess the effectiveness of proto-
cols for treating Persian Gulf veterans who suffer from
321
ill-defined or undiagnosed conditions. Such protocols shall
include a multidisciplinary treatment model, of which cog-
nitive behavioral therapy is a component.
(c) FUNDING.—Of the funds authorized to be appro-
priated in section 201(1) for research, development, test,
and evaluation for the Army, the sum of $4,500,000 shall
be available for program element 62787A (medical tech-
nology) in the budget of the Department of Defense for
fiscal year 1998 to carry out the clinical trials program
established pursuant to subsection (b).
SEC. 760. SENSE OF THE CONGRESS CONCERNING GULF
WAR ILLNESS.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Americans served in the Persian Gulf Con-
flict of 1991 in defense of vital national security in-
terests of the United States.
(2) It was known to United States intelligence
and military commanders that biological and chemi-
cal agents were in theater throughout the conflict.
(3) An undetermined amount of these agents
were released into theater.
(4) A large number of United States military
veterans and allied veterans who served in the
322
Southwest Asia theater of operations have been
stricken with a variety of severe illnesses.
(5) Previous efforts to discern the causes of
those illnesses have been inadequate, and those ill-
nesses are affecting the health of both veterans and
their families.
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that all promising technology and treatments relat-
ing to Gulf War illnesses should be fully explored and test-
ed to facilitate treatment for members of the Armed
Forces and veterans who served the United States in the
Persian Gulf conflict and are stricken with unexplainable
illness.
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
Subtitle A—Acquisition Policy
SEC. 801. CASE-BY-CASE WAIVERS OF DOMESTIC SOURCE
LIMITATIONS.
(a) REQUIREMENT FOR CASE-BY-CASE WAIVERS.—
Section 2534(d) of title 10, United States Code, is amend-
ed in the matter appearing before paragraph (1) by strik-
ing out ‘‘waive the limitation in subsection (a) with respect
to the procurement of an item listed in that subsection
323
if the Secretary determines’’ and inserting in lieu thereof
the following: ‘‘waive, on a case-by-case basis, the limita-
tion in subsection (a) in the case of a specific procurement
of an item listed in that subsection if the Secretary deter-
mines, for that specific procurement,’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply with respect to contracts entered
into after the expiration of the 30-day period beginning
on the date of the enactment of this Act.
SEC. 802. EXPANSION OF AUTHORITY TO ENTER INTO CON-
TRACTS CROSSING FISCAL YEARS TO ALL
SEVERABLE SERVICES CONTRACTS NOT EX-
CEEDING A YEAR.
(a) EXPANDED AUTHORITY.—Section 2410a of title
10, United States Code, is amended to read as follows:
‘‘§ 2410a. Severable services contracts for periods
crossing fiscal years
‘‘(a) AUTHORITY.—The Secretary of Defense or the
Secretary of a military department may enter into a con-
tract for procurement of severable services for a period
that begins in one fiscal year and ends in the next fiscal
year if (without regard to any option to extend the period
of the contract) the contract period does not exceed one
year.
324
‘‘(b) OBLIGATION OF FUNDS.—Funds made available
for a fiscal year may be obligated for the total amount
of a contract entered into under the authority of sub-
section (a).’’.
(b) CLERICAL AMENDMENT.—The item relating to
that section in the table of sections at the beginning of
chapter 141 of such title is amended to read as follows:
‘‘2410a. Severable services contracts for periods crossing fiscal years.’’.
SEC. 803. CLARIFICATION OF VESTING OF TITLE UNDER
CONTRACTS.
Section 2307 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(i) VESTING OF TITLE.—If a contract made by the
head of an agency provides for title to property to vest
in the United States, such title shall vest in accordance
with the terms of the contract, regardless of any security
interest in the property asserted by the contractor.’’.
SEC. 804. EXCLUSION OF DISASTER RELIEF, HUMANI-
TARIAN, AND PEACEKEEPING OPERATIONS
FROM 
RESTRICTIONS 
ON 
USE 
OF
UNDEFINITIZED CONTRACT ACTIONS.
Section 2326 of title 10, United States Code, is
amended—
(1) in subsection (b)—
(A) by striking out paragraph (4); and
325
(B) by redesignating paragraph (5) as
paragraph (4); and
(2) in subsection (g)(1), by adding at the end
the following new subparagraphs:
‘‘(E) Purchases in support of contingency
operations.
‘‘(F) Purchases in support of humanitarian
or peacekeeping operations, as defined in
2302(7)(B) of this title.
‘‘(G) Purchases in support of emergency
work and other disaster relief operations per-
formed pursuant to the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.).’’.
SEC. 805. LIMITATION AND REPORT ON PAYMENT OF RE-
STRUCTURING COSTS UNDER DEFENSE CON-
TRACTS.
(a) IN GENERAL.—(1) Chapter 137 of title 10, Unit-
ed States Code, is amended by inserting after section 2324
the following new section:
‘‘§ 2325. Restructuring costs
‘‘(a) LIMITATION ON PAYMENT OF RESTRUCTURING
COSTS.—(1) The Secretary of Defense may not pay, under
section 2324 of this title, a defense contractor for restruc-
turing costs associated with a business combination of the
326
contractor unless the Secretary determines in writing ei-
ther—
‘‘(A) that the amount of savings for the De-
partment of Defense associated with the restructur-
ing, based on audited cost data, will be at least twice
the amount of the costs allowed; or
‘‘(B) that the amount of savings for the De-
partment of Defense associated with the restructur-
ing, based on audited cost data, will exceed the
amount of the costs allowed and that the business
combination will result in the preservation of a criti-
cal capability that otherwise might be lost to the De-
partment.
‘‘(2) The Secretary may not delegate the authority
to make a determination under paragraph (1) to an offi-
cial of the Department of Defense below the level of an
Assistant Secretary of Defense.
‘‘(b) REPORT.—Not later than March 1 in each of
1998, 1999, 2000, 2001, and 2002, the Secretary of De-
fense shall submit to Congress a report containing the fol-
lowing:
‘‘(1) For each defense contractor to which the
Secretary has paid, under section 2324 of this title,
restructuring costs associated with a business com-
bination, a summary of the following:
327
‘‘(A) The amount of savings for the De-
partment of Defense associated with such busi-
ness combination that has been realized as of
the date of the report, based on audited cost
data.
‘‘(B) An estimate, as of the date of the re-
port, of the amount of savings for the Depart-
ment of Defense associated with such business
combination that is expected to be achieved in
the future.
‘‘(2) An identification of any business combina-
tion for which the Secretary has paid restructuring
costs under section 2324 of this title during the pre-
ceding calendar year and, for each such business
combination—
‘‘(A) the supporting rationale for allowing
such costs;
‘‘(B) factual information associated with
the determination made under subsection (a)
with respect to such costs; and
‘‘(C) a discussion of whether the business
combination would have proceeded without the
payment of restructuring costs by the Sec-
retary.
328
‘‘(3) An assessment of the degree of vertical in-
tegration resulting from business combinations of
defense contractors and a discussion of the measures
taken by the Secretary of Defense to increase the
ability of the Department of Defense to monitor ver-
tical integration trends and address any resulting
negative consequences.
‘‘(c) DEFINITION.—In this section, the term ‘business
combination’ includes a merger or acquisition.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 2324 the following new item:
‘‘2325. Restructuring costs.’’.
(b) EFFECTIVE DATE.—Section 2325 of title 10,
United States Code, as added by subsection (a), shall
apply with respect to business combinations that occur
after the date of the enactment of this Act.
(c) REPEAL
OF SUPERSEDED PROVISION.—Sub-
section (a) of section 818 of the National Defense Author-
ization Act for Fiscal Year 1995 (10 U.S.C. 2324 note)
is repealed.
SEC. 806. AUTHORITY RELATING TO PURCHASE OF CER-
TAIN VEHICLES.
Section 2253(a)(2) of title 10, United States Code,
is amended by striking out ‘‘$12,000’’ and inserting in
lieu thereof ‘‘$30,000’’.
329
SEC. 807. MULTIYEAR PROCUREMENT CONTRACTS.
(a) REQUIREMENT FOR AUTHORIZATION BY LAW IN
ACTS OTHER THAN APPROPRIATIONS ACTS.—(1) Sub-
section (i) of section 2306b of title 10, United States
Code, is amended by adding at the end the following new
paragraph:
‘‘(3) In the case of the Department of Defense, a
multiyear contract may not be entered into for any fiscal
year under this section unless the contract is specifically
authorized by law in an Act other than an appropriations
Act.’’.
(2) Paragraph (3) of section 2306b(i) of title 10,
United States Code, as added by paragraph (1), shall not
apply with respect to a contract authorized by law before
the date of the enactment of this Act.
(b) 
CODIFICATION
OF
ANNUAL
RECURRING
MULTIYEAR PROCUREMENT REQUIREMENTS.—(1) Such
section is further amended by adding at the end the fol-
lowing new subsection:
‘‘(l) VARIOUS ADDITIONAL REQUIREMENTS WITH
RESPECT TO MULTIYEAR DEFENSE CONTRACTS.—(1)(A)
The head of an agency may not initiate a contract de-
scribed in subparagraph (B) unless the congressional de-
fense committees are notified of the proposed contract at
least 30 days in advance of the award of the proposed
contract.
330
‘‘(B) Subparagraph (A) applies to the following con-
tracts:
‘‘(i) A multiyear contract—
‘‘(I) that employs economic order quantity
procurement in excess of $20,000,000 in any
one year of the contract; or
‘‘(II) that includes an unfunded contingent
liability in excess of $20,000,000.
‘‘(ii) Any contract for advance procurement
leading to a multiyear contract that employs eco-
nomic order quantity procurement in excess of
$20,000,000 in any one year.
‘‘(2) The head of an agency may not initiate a
multiyear contract for which the economic order quantity
advance procurement is not funded at least to the limits
of the Government’s liability.
‘‘(3) The head of an agency may not initiate a
multiyear procurement contract for any system (or compo-
nent thereof) if the value of the multiyear contract would
exceed $500,000,000 unless authority for the contract is
specifically provided in an appropriations Act.
‘‘(4) The head of an agency may not terminate a
multiyear procurement contract until 10 days after the
date on which notice of the proposed termination is pro-
vided to the congressional defense committees.
331
‘‘(5) The execution of multiyear authority shall re-
quire the use of a present value analysis to determine low-
est cost compared to an annual procurement.
‘‘(6) This subsection does not apply to the National
Aeronautics and Space Administration or to the Coast
Guard.
‘‘(7) In this subsection, the term ‘congressional de-
fense committees’ means the following:
‘‘(A) The Committee on Armed Services of the
Senate and the Subcommittee on Defense of the
Committee on Appropriations of the Senate.
‘‘(B) The Committee on National Security of
the House of Representatives and the Subcommittee
on National Security of the Committee on Appro-
priations of the House of Representatives.’’.
(2) The amendment made by paragraph (1) shall
take effect on October 1, 1998.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
Such section is further amended as follows:
(1) Subsection (a) is amended—
(A) by striking out ‘‘finds—’’ in the matter
preceding paragraph (1) and inserting in lieu
thereof ‘‘finds each of the following:’’;
332
(B) by capitalizing the initial letter of the
first word in each of paragraphs (1) through
(6);
(C) by striking out the semicolon at the
end of paragraphs (1) through (4) and insert-
ing in lieu thereof a period; and
(D) by striking out ‘‘; and’’ at the end of
paragraph (5) and inserting in lieu thereof a
period.
(2) Subsection (d)(1) is amended by striking
out ‘‘paragraph (1)’’ and inserting in lieu thereof
‘‘subsection (a)’’.
(3) Subsection (i)(1) is amended by striking
‘‘five-year’’ and inserting in lieu thereof ‘‘future-
years’’.
(4) Subsection (k) is amended by striking out
‘‘subsection’’ and inserting in lieu thereof ‘‘section’’.
SEC. 808. DOMESTIC SOURCE LIMITATION AMENDMENTS.
(a) ADDITION OF SHIPBOARD WORK STATIONS.—
Section 2534(a)(3)(B) of title 10, United States Code, is
amended—
(1) by striking out ‘‘and’’ before ‘‘totally’’; and
(2) by inserting before the period at the end the
following: ‘‘, and shipboard work stations’’.
333
(b) EXTENSION OF DOMESTIC SOURCE LIMITATION
FOR
VALVES
AND
MACHINE
TOOLS.—Section
2534(c)(2)(C) of such title is amended by striking out
‘‘October 1, 1996’’ and inserting in lieu thereof ‘‘October
1, 2001’’.
SEC. 809. REPEAL OF EXPIRATION OF DOMESTIC SOURCE
LIMITATION FOR CERTAIN NAVAL VESSEL
PROPELLERS.
Section 2534(c) of title 10, United States Code, is
amended by striking out paragraph (4).
SEC. 810. AUDIT OF PROCUREMENT OF GOODS BY MILI-
TARY 
INSTALLATIONS 
IN 
THE 
UNITED
STATES.
(a) AUDIT REQUIREMENT.—Not later than Septem-
ber 30, 1998, the Inspector General of the Department
of Defense shall perform a random audit of the procure-
ment of goods by military installations during fiscal years
1996 and 1997 to determine the extent to which such in-
stallations procured goods made in a country other than
the United States during those fiscal years.
(b) DEFINITION.—For purposes of this section, the
term ‘‘random audit of the procurement of goods by mili-
tary installations’’—
(1) means an audit of the procurement of goods
(not including goods obtained from the Defense Lo-
334
gistics Agency) by not less than four and not more
than twelve military installations in the United
States;
(2) shall include an audit of the procurement of
goods by a military installation of each of the Army,
Navy, Air Force, and Marine Corps.
(c) REPORT.—Not later than October 31, 1998, the
Inspector General of the Department of Defense shall sub-
mit to Congress a report on the results of the audit per-
formed under subsection (a).
Subtitle B—Other Matters
SEC. 821. REPEAL OF CERTAIN ACQUISITION REQUIRE-
MENTS AND REPORTS
(a) REPEAL
OF REPORTING REQUIREMENT
FOR
NONMAJOR ACQUISITION PROGRAMS.—Section 2220(b) of
title 10, United States Code, is amended by striking out
‘‘and nonmajor’’.
(b) REPEAL OF ADDITIONAL DOCUMENTATION RE-
QUIREMENT FOR COMPETITION EXCEPTION FOR INTER-
NATIONAL AGREEMENTS.—Section 2304(f) of title 10,
United States Code, is amended in paragraph (2)(E) by
striking out ‘‘procedures and such document is approved
by the competition advocate for the procuring activity.’’
and inserting in lieu thereof ‘‘procedures.’’.
335
(c) ELIMINATION
OF COMPLETION STATUS RE-
QUIREMENT
IN CERTAIN SELECTED ACQUISITION RE-
PORTS.—Section 2432(h)(2) of title 10, United States
Code, is amended—
(1) by striking out subparagraph (D); and
(2) by redesignating subparagraphs (E) and
(F) as subparagraphs (D) and (E), respectively.
(d) REPEAL OF REQUIREMENT TO ESTABLISH PRO-
CUREMENT COMPETITION GOALS.—Section 913 of the
Department of Defense Authorization Act, 1986 (Public
Law 99–145; 99 Stat. 687; 10 U.S.C. 2302 note), is re-
pealed.
(e) REPEAL OF ANNUAL REPORT BY ADVOCATES
FOR COMPETITION.—Section 20(b) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 418(b)) is amend-
ed—
(1) by striking out ‘‘and’’ at the end of para-
graph (3)(B);
(2) by striking out paragraph (4); and
(3) by redesignating paragraphs (5), (6), and
(7) as paragraphs (4), (5), and (6), respectively.
(f) REPEAL OF REVIEW AND REPORT RELATING TO
PROCUREMENT REGULATIONS.—Section 25 of the Office
of Federal Procurement Policy Act (41 U.S.C. 421) is
amended—
336
(1) by striking out paragraphs (4), (5), and (6)
of subsection (c); and
(2) by striking out subsection (g).
SEC. 822. EXTENSION OF AUTHORITY FOR USE OF TEST
AND EVALUATION INSTALLATIONS BY COM-
MERCIAL ENTITIES.
Section 2681(g) of title 10, United States Code, is
amended by striking out ‘‘September 30, 1998’’ and in-
serting in lieu thereof ‘‘September 30, 2000’’.
SEC. 823. REQUIREMENT TO DEVELOP AND MAINTAIN LIST
OF FIRMS NOT ELIGIBLE FOR DEFENSE CON-
TRACTS.
(a) DEVELOPMENT AND MAINTENANCE OF LIST.—
Section 2327 of title 10, United States Code, is amend-
ed—
(1) by redesignating subsections (d) and (e) as
subsections (e) and (f), respectively; and
(2) by inserting after subsection (c) the follow-
ing new subsection:
‘‘(d) LIST OF FIRMS SUBJECT TO SUBSECTION (b).—
(1) The Secretary of Defense shall develop and maintain
a list of all firms and subsidiaries of firms that have been
subject to the prohibition in subsection (b) since the date
occurring five years before the date of the enactment of
the National Defense Authorization Act for Fiscal Year
337
1998. The Secretary shall make the list available to the
public.
‘‘(2) A firm or subsidiary included on the list main-
tained under paragraph (1) may request the Secretary of
Defense to remove such firm or subsidiary from the list
if its foreign ownership circumstances have significantly
changed. Upon receipt of such request, the Secretary shall
determine if paragraphs (1) and (2) of subsection (b) still
apply to the firm or subsidiary. If the Secretary deter-
mines such paragraphs no longer apply, the Secretary
shall remove the firm or subsidiary from the list.
‘‘(3) The head of an agency shall provide a copy of
the list maintained under paragraph (1) to each firm or
subsidiary of a firm that submits a bid or proposal in re-
sponse to a solicitation issued by the Department of De-
fense.
‘‘(4) The head of an agency shall prohibit each firm
or subsidiary of a firm awarded a contract by the agency
from using in the performance of the contract any equip-
ment, parts, or services that are provided by a firm or
subsidiary included on the list maintained under para-
graph (1).’’.
(b) REMOVAL FROM LIST.—Section 2327(c)(1)(A) of
such title is amended by inserting after ‘‘United States,’’
the following: ‘‘the Secretary shall remove the firm or sub-
338
sidiary from the list maintained under subsection (d)(1)
and’’.
SEC. 824. ALLOWABILITY OF COSTS OF EMPLOYEE STOCK
OWNERSHIP PLANS.
(a) PROHIBITION.—Under section 2324 of title 10,
United States Code, the Secretary of Defense may not de-
termine the allowability of costs of employee stock owner-
ship plans under contracts with the Department of De-
fense in accordance with the rule described in subsection
(b).
(b) RULE.—The rule referred to in subsection (a) is
the rule that was—
(1) proposed by the Civilian Agency Acquisition
Council and the Defense Acquisition Regulations
Council on November 7, 1995, and referred to as
FAR Case 92–024, Employee Stock Ownership
Plans (60 Federal Register 56216); and
(2) withdrawn by such Councils on April 3,
1996 (61 Federal Register 14944).
SEC. 825. EXPANSION OF PERSONNEL ELIGIBLE TO PAR-
TICIPATE IN DEMONSTRATION PROJECT RE-
LATING TO ACQUISITION WORKFORCE.
(a) AMENDMENT TO PURPOSE OF PROJECT.—Sec-
tion 4308(a) of the National Defense Authorization Act
for Fiscal Year 1996 (Public Law 104–106; 10 U.S.C.
339
1701 note) is amended by adding before the period at the
end the following: ‘‘and supporting personnel assigned to
work directly with the acquisition workforce’’.
(b) AMENDMENT TO ELIGIBLE WORKFORCE.—Sec-
tion 4308(b)(3)(A) of such Act is amended by inserting
before the semicolon the following: ‘‘or involves a team of
personnel more than half of which consists of members
of the acquisition workforce and the remainder of which
consists of supporting personnel assigned to work directly
with the acquisition workforce’’.
(c) 
COMMENCEMENT
OF
PROJECT.—Section
4308(b)(3)(C) of such Act, as redesignated by subsection
(b)(2), is amended by striking out ‘‘this Act’’ and inserting
in lieu thereof ‘‘the National Defense Authorization Act
for Fiscal Year 1998’’.
(d) LIMITATION ON NUMBER OF PARTICIPANTS.—
Section 4308 of such Act is amended by adding at the
end the following:
‘‘(d) LIMITATION ON NUMBER OF PARTICIPANTS.—
The total number of persons who may participate in the
demonstration project under this section may not exceed
the number that is equal to the total number of persons
who are members of the acquisition workforce.’’.
340
SEC. 826. TIME FOR SUBMISSION OF ANNUAL REPORT RE-
LATING TO BUY AMERICAN ACT.
Section 827 of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104–201; 41 U.S.C.
10b–3) is amended by striking out ‘‘120 days’’ and insert-
ing in lieu thereof ‘‘60 days’’.
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND
MANAGEMENT
SEC. 901. LIMITATION ON OPERATION AND SUPPORT
FUNDS FOR THE OFFICE OF THE SECRETARY
OF DEFENSE.
(a) REDUCTION IN FUNDS.—The amount of funds
appropriated pursuant to section 301 that are available
for operation and support activities of the Office of the
Secretary of Defense may not exceed the amount equal
to 80 percent of the amount of funds requested for such
purpose in the budget submitted by the President to Con-
gress under section 1105 of title 31, United States Code,
for fiscal year 1998.
(b) LIMITATION PENDING RECEIPT OF PREVIOUSLY
REQUIRED REPORTS.—Of the amount available for fiscal
year 1998 for operation and support activities of the Of-
fice of the Secretary of Defense (as limited pursuant to
subsection (a)), not more than 90 percent may be obli-
341
gated until each of the following reports has been submit-
ted to the congressional defense committees:
(1) The report required by section 901(c) of the
National Defense Authorization Act for Fiscal Year
1996 (Public Law 104–106; 110 Stat. 401).
(2) The report required by section 904(b) of the
National Defense Authorization Act for Fiscal Year
1997 (Public Law 104–201; 110 Stat. 2619).
SEC. 902. COMPONENTS OF NATIONAL DEFENSE UNIVER-
SITY.
(a) EMPLOYMENT AND COMPENSATION OF CIVILIAN
FACULTY.—Section 1595(d)(2) of title 10, United States
Code, is amended by striking out ‘‘Institute for National
Strategic Study,’’ and inserting in lieu thereof ‘‘Institute
for National Strategic Studies, the Information Resources
Management College,’’.
(b) PREPARATION OF BUDGET REQUESTS.—Section
2162(d)(2) of such title is amended by inserting after ‘‘the
Armed Forces Staff College,’’ the following: ‘‘the Institute
for National Strategic Studies, the Information Resources
Management College,’’.
SEC. 903. AUTHORIZATION FOR THE MARINE CORPS UNI-
VERSITY TO EMPLOY CIVILIAN PROFESSORS.
(a) IN GENERAL.—Subsections (a) and (c) of 7478
of title 10, United States Code, are amended by striking
342
‘‘or at the Marine Corps Command and Staff College’’ and
inserting in lieu thereof ‘‘or at a school of the Marine
Corps University’’.
(b) CLERICAL AMENDMENTS.—(1) The heading of
such section is amended to read as follows:
‘‘§ 7478. Naval War College and Marine Corps Univer-
sity: civilian faculty members’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 643 of such title is
amended to read as follows:
‘‘7478. Naval War College and Marine Corps University: civilian faculty mem-
bers.’’.
SEC. 904. CENTER FOR THE STUDY OF CHINESE MILITARY
AFFAIRS.
(a) FINDINGS.—The Congress finds the following:
(1) The strategic relationship between the Unit-
ed States and the People’s Republic of China will be
very important for future peace and security, not
only in the Asia-Pacific region but around the world.
(2) The United States does not view China as
an enemy, nor consider that the coming century nec-
essarily will see a new great power competition be-
tween the two nations.
(3) The end of the Cold War has eliminated
what had been the one fundamental common strate-
343
gic interest of the United States and China, that of
containing the Soviet Union.
(4) The rapid economic rise and stated geo-
political ambitions of China will pose challenges that
will require careful management in order to preserve
peace and protect the national security interests of
the United States.
(5) The ability of the Department of Defense,
and the United States Government more generally,
to develop sound security and military strategies is
hampered by a limited understanding of Chinese
strategic goals and military capabilities. The low pri-
ority accorded the study of Chinese strategic and
military affairs within the Government and within
the academic community has contributed to this lim-
ited understanding.
(6) There is a need for a United States national
institute for research and assessment of political,
strategic, and military affairs in the People’s Repub-
lic of China. Such an institute should be capable of
providing analysis for the purpose of shaping United
States military strategy and policy with regard to
China and should be readily accessible to senior
leaders within the Department of Defense, but
should maintain academic and intellectual independ-
344
ence so that that analysis is not first shaped by pol-
icy.
(b) ESTABLISHMENT OF CENTER FOR THE STUDY
OF CHINESE MILITARY AFFAIRS.—(1) Chapter 108 of
title 10, United States Code, is amended by adding at the
end the following new section:
‘‘§ 2165. National Defense University: Center for the
Study of Chinese Military Affairs
‘‘(a) ESTABLISHMENT.—(1) The Secretary of De-
fense shall establish a Center for the Study of Chinese
Military Affairs (hereinafter in this section referred to as
the ‘Center’) as part of the National Defense University.
The Center shall be organized as an independent institute
under the University.
‘‘(2) The Director of the Center shall be a distin-
guished scholar of proven academic, management, and
leadership credentials with a superior record of achieve-
ment and publication regarding Chinese political, strate-
gic, and military affairs. The Director shall be appointed
by the Secretary of Defense in consultation with the chair-
man and ranking minority party member of the Commit-
tee on National Security of the House of Representatives
and the chairman and ranking minority party member of
the Committee on Armed Services of the Senate.
345
‘‘(b) MISSION.—The mission of the Center is to study
the national goals and strategic posture of the People’s
Republic of China and the ability of that nation to develop,
field, and deploy an effective military instrument in sup-
port of its national strategic objectives.
‘‘(c) AREAS OF STUDY.—The Center shall conduct
research relating to the People’s Republic of China as fol-
lows:
‘‘(1) To assess the potential of that nation to
act as a global great power, the Center shall conduct
research that considers the policies and capabilities
of that nation in a regional and world-wide context,
including Central Asia, Southwest Asia, Europe, and
Latin America, as well as the Asia-Pacific region.
‘‘(2) To provide a fuller assessment of the areas
of study referred to in paragraph (1), the Center
shall conduct research on—
‘‘(A) economic trends relative to strategic
goals and military capabilities;
‘‘(B) strengths and weaknesses in the sci-
entific and technological sector; and
‘‘(C) relevant demographic and human re-
source factors on progress in the military
sphere.
346
‘‘(3) The Center shall conduct research on the
armed forces of the People’s Republic of China, tak-
ing into account the character of those armed forces
and their role in Chinese society and economy, the
degree of their technological sophistication, and their
organizational and doctrinal concepts. That research
shall include inquiry into the following matters:
‘‘(A) Concepts concerning national inter-
ests, objectives, and strategic culture.
‘‘(B) Grand strategy, military strategy,
military operations, and tactics.
‘‘(C) Doctrinal concepts at each of the four
levels specified in subparagraph (B).
‘‘(D) The impact of doctrine on China’s
force structure choices.
‘‘(E) The interaction of doctrine and force
structure at each level to create an integrated
system of military capabilities through procure-
ment, officer education, training, and practice
and other similar factors.
‘‘(d) FACULTY OF THE CENTER.—(1) The core fac-
ulty of the Center should comprise mature scholars capa-
ble of providing diverse perspectives on Chinese political,
strategic, and military thought. Center scholars shall dem-
onstrate the following competencies and capabilities:
347
‘‘(A) Analysis of national strategy, military
strategy, and doctrine.
‘‘(B) Analysis of force structure and military
capabilities.
‘‘(C) Analysis of—
‘‘(i) issues relating to weapons of mass de-
struction, military intelligence, defense econom-
ics, trade, and international economics; and
‘‘(ii) the relationship between those issues
and grand strategy, science and technology, the
sociology of human resources and demography,
and political science.
‘‘(2) A substantial number of Center scholars shall
be competent in the Chinese language. The Center shall
include a core of junior scholars capable of providing lin-
guistics and translation support to the Center.
‘‘(e) ACTIVITIES OF THE CENTER.—The activities of
the Center shall include other elements appropriate to its
mission, including the following:
‘‘(1) The Center should include an active con-
ference program with an international reach.
‘‘(2) The Center should conduct an inter-
national competition for a Visiting Fellowship in
Chinese Military Affairs and Chinese Security Is-
sues. The term of the fellowship should be for one
348
year, renewable for a second. The visitor should con-
tract to produce a major publication in the visitor’s
area of expertise.
‘‘(3) The Center shall provide funds to support
at least one trip per analyst per year to China and
the region and to support visits of Chinese military
leaders to the Center.
‘‘(4) The Center shall support well defined, dis-
tinguished, signature publications.
‘‘(5) Center scholars shall have appropriate ac-
cess to intelligence community assessments of Chi-
nese military affairs.
‘‘(f) STUDIES
AND REPORTS.—The Director may
contract for studies and reports from the private sector
to supplement the work of the Center.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘2165. National Defense University: Center for the Study of Chinese Military
Affairs.’’.
(c) IMPLEMENTATION REPORT.—Not later than Jan-
uary 1, 1998, the Secretary of Defense shall submit to
Congress a report stating the timetable and organizational
plan for establishing the Center for the Study of Chinese
Military Affairs under section 2165 of title 10, United
States Code, as added by subsection (b).
349
(d) STARTUP OF CENTER.—The Secretary shall es-
tablish the Center for the Study of Chinese Military Af-
fairs under section 2165 of title 10, United States Code,
as added by subsection (b), not later than March 1, 1998,
and shall appoint the first Director of the Center not later
than June 1, 1998.
(e) FIRST YEAR FUNDING.—Of the amount available
to the Secretary of Defense for fiscal year 1998 for De-
fense-wide operation and maintenance (other than funds
otherwise available for the activities of the National De-
fense University), the Secretary shall make $5,000,000
available for the Center for the Study of Chinese Military
Affairs established under section 2165 of title 10, United
States Code, as added by subsection (b).
SEC. 905. WHITE HOUSE COMMUNICATIONS AGENCY.
Of the amount appropriated pursuant to section 301
for operation and maintenance for fiscal year 1998, not
more than $55,000,000 may be made available for the
White House Communications Agency.
SEC. 906. REVISION TO REQUIRED FREQUENCY FOR PROVI-
SION OF POLICY GUIDANCE FOR CONTIN-
GENCY PLANS.
Section 113(g)(2) of title 10, United States Code, is
amended—
350
(1) in the first sentence, by striking out ‘‘annu-
ally’’; and
(2) in the second sentence, by inserting ‘‘be
provided every two years or more frequently as need-
ed and shall’’ after ‘‘Such guidance shall’’.
SEC. 907. TERMINATION OF THE DEFENSE AIRBORNE RE-
CONNAISSANCE OFFICE.
(a) TERMINATION
OF OFFICE.—The organization
within the Department of Defense known as the Defense
Airborne Reconnaissance Office is terminated. No funds
available for the Department of Defense may be used for
the operation of that Office after the date specified in sub-
section (d).
(b) TRANSFER OF FUNCTIONS.—(1) Subject to para-
graphs (2) and (3), the Secretary of Defense shall transfer
to the Defense Intelligence Agency the functions that were
performed on the day before the date of the enactment
this Act by the Defense Airborne Reconnaissance Office
relating to its responsibilities for management oversight
and coordination of defense airborne reconnaissance capa-
bilities.
(2) The Secretary shall determine which functions
are appropriate for transfer under paragraph (1). In mak-
ing such determination, the Secretary shall ensure that
program management, development and acquisition, oper-
352
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
SEC. 1001. TRANSFER AUTHORITY.
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—
(1) Upon determination by the Secretary of Defense that
such action is necessary in the national interest, the Sec-
retary may transfer amounts of authorizations made avail-
able to the Department of Defense in this division for fis-
cal year 1998 between any such authorizations for that
fiscal year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and be
available for the same purposes as the authorization to
which transferred.
(2) The total amount of authorizations that the Sec-
retary of Defense may transfer under the authority of this
section may not exceed $2,000,000,000.
(b) LIMITATIONS.—The authority provided by this
section to transfer authorizations—
(1) may only be used to provide authority for
items that have a higher priority than the items
from which authority is transferred; and
(2) may not be used to provide authority for an
item that has been denied authorization by Con-
gress.
353
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A
transfer made from one account to another under the au-
thority of this section shall be deemed to increase the
amount authorized for the account to which the amount
is transferred by an amount equal to the amount trans-
ferred.
(d) NOTICE
TO CONGRESS.—The Secretary shall
promptly notify Congress of each transfer made under
subsection (a).
SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.
(a) STATUS OF CLASSIFIED ANNEX.—The Classified
Annex prepared by the Committee on National Security
of the House of Representatives to accompany the bill
H.R. 1119 of the One Hundred Fifth Congress and trans-
mitted to the President is hereby incorporated into this
Act.
(b) CONSTRUCTION WITH OTHER PROVISIONS OF
ACT.—The amounts specified in the Classified Annex are
not in addition to amounts authorized to be appropriated
by other provisions of this Act.
(c) LIMITATION ON USE OF FUNDS.—Funds appro-
priated pursuant to an authorization contained in this Act
that are made available for a program, project, or activity
referred to in the Classified Annex may only be expended
for such program, project, or activity in accordance with
354
such terms, conditions, limitations, restrictions, and re-
quirements as are set out for that program, project, or
activity in the Classified Annex.
(d) DISTRIBUTION
OF CLASSIFIED ANNEX.—The
President shall provide for appropriate distribution of the
Classified Annex, or of appropriate portions of the annex,
within the executive branch of the Government.
SEC. 1003. AUTHORITY FOR OBLIGATION OF UNAUTHOR-
IZED FISCAL YEAR 1997 DEFENSE APPRO-
PRIATIONS.
(a) AUTHORITY.—The amounts described in sub-
section (b) may be obligated and expended for programs,
projects, and activities of the Department of Defense in
accordance with fiscal year 1997 defense appropriations.
(b) COVERED AMOUNTS.—The amounts referred to
in subsection (a) are the amounts provided for programs,
projects, and activities of the Department of Defense in
fiscal year 1997 defense appropriations that are in excess
of the amounts provided for such programs, projects, and
activities in fiscal year 1997 defense authorizations.
(c) DEFINITIONS.—For the purposes of this section:
(1) FISCAL
YEAR
1997
DEFENSE
APPROPRIA-
TIONS.—The term ‘‘fiscal year 1997 defense appro-
priations’’ means amounts appropriated or otherwise
made available to the Department of Defense for fis-
355
cal year 1997 in the Department of Defense Appro-
priations Act, 1997 (as contained in section 101(b)
of Public Law 104–208).
(2) FISCAL YEAR 1997 DEFENSE AUTHORIZA-
TIONS.—The term ‘‘fiscal year 1997 defense author-
izations’’ means amounts authorized to be appro-
priated for the Department of Defense for fiscal
year 1997 in the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104–201).
SEC. 1004. AUTHORIZATION OF SUPPLEMENTAL APPRO-
PRIATIONS FOR FISCAL YEAR 1997.
Amounts authorized to be appropriated to the De-
partment of Defense for fiscal year 1997 in the National
Defense Authorization Act for Fiscal Year 1997 (Public
Law 104–201) are hereby adjusted, with respect to any
such authorized amount, by the amount by which appro-
priations pursuant to such authorization were increased
(by a supplemental appropriation) or decreased (by a re-
scission), or both, in the 1997 Emergency Supplemental
Appropriations Act for Recovery from Natural Disasters,
and for Overseas Peacekeeping Efforts, Including Those
in Bosnia.
356
SEC. 1005. INCREASE IN FISCAL YEAR 1996 TRANSFER AU-
THORITY.
Section 1001(a)(2) of the National Defense Author-
ization Act for Fiscal Year 1996 (Public Law 104–106;
100 
Stat. 
2630) 
is 
amended 
by 
striking 
out
‘‘$2,000,000,000’’ 
and 
inserting 
in 
lieu 
thereof
‘‘$3,100,000,000’’.
SEC. 1006. FISHER HOUSE TRUST FUNDS.
Section 2221(c) of title 10, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(5) There is hereby authorized to be appropriated
for any fiscal year from a trust fund specified in sub-
section (a) any amount referred to in paragraph (1), (2),
or (3) (as applicable to that trust fund), such amount to
be available only for the purposes stated in that para-
graph. With respect to any such amount, the preceding
sentence is the specific authorization by law required by
section 1321(b)(2) of title 31.’’.
SEC. 1007. FLEXIBILITY IN FINANCING CLOSURE OF CER-
TAIN OUTSTANDING CONTRACTS FOR WHICH
A SMALL FINAL PAYMENT IS DUE.
(a) CLOSURE OF OUTSTANDING CONTRACTS.—The
Secretary of Defense may make the final payment on a
contract to which this section applies from the account es-
tablished pursuant to subsection (d).
357
(b) COVERED CONTRACTS.—This section applies to
any contract of the Department of Defense—
(1) that was entered into before December 5,
1990; and
(2) for which an unobligated balance of an ap-
propriation that had been initially applied to the
contract was canceled before December 5, 1990,
pursuant to section 1552 of title 31, United States
Code, as in effect before that date.
(c) AUTHORITY LIMITED
TO SMALL FINAL PAY-
MENTS.—The Secretary may use the authority provided
by this section only for a contract for which the amount
of the final payment due is not greater than the micro-
purchase threshold (as defined in section 32 of the Office
of Federal Procurement Policy Act (41 U.S.C. 428)).
(d) ACCOUNT.—The Secretary may establish an ac-
count for the purposes of this section. The Secretary may
from time to time transfer into the account, from funds
available to the Department of Defense for procurement
or for research, development, test, and evaluation, such
amounts as the Secretary determines to be needed for the
purposes of the account, except that no such transfer may
be made that would result in the balance of the account
exceeding $1,000,000. Amounts in the account may be
used only for the purposes of this section.
358
(e) CLOSURE OF ACCOUNT.—When the Secretary de-
termines that all contracts to which this section applies
have been closed and there is no further need for the ac-
count established under subsection (d), the Secretary shall
close the account. Any amounts remaining in the account
shall be covered into the Treasury as miscellaneous re-
ceipts.
SEC. 1008. UNITED STATES MAN AND THE BIOSPHERE PRO-
GRAM LIMITATION.
No funds appropriated pursuant to this Act shall be
used for the United States Man and Biosphere Program,
or related projects.
Subtitle B—Naval Vessels and
Shipyards
SEC. 1021. RELATIONSHIP OF CERTAIN LAWS TO DISPOSAL
OF VESSELS FOR EXPORT FROM THE NAVAL
VESSEL REGISTER AND THE NATIONAL DE-
FENSE RESERVE FLEET.
(a) NAVAL VESSEL REGISTER.—(1) Section 7305 of
title 10, United States Code, is amended by adding at the
end the following:
‘‘(e) RELATIONSHIP TO TOXIC SUBSTANCES CON-
TROL ACT.—(1) Subject to paragraph (2), the sale of a
vessel under this section for export, or any subsequent re-
sale of a vessel sold under this section for export—
359
‘‘(A) is not a disposal or a distribution in com-
merce under section 6 or 12(a) of the Toxic Sub-
stances Control Act (15 U.S.C. 2605 and 2611(a))
or an export of hazardous waste under section 3017
of the Solid Waste Disposal Act (42 U.S.C. 6938);
and
‘‘(B) is not subject to section 12(b) of the Toxic
Substances Control Act (15 U.S.C. 2611(b)).
‘‘(2)(A) Paragraph (1) applies to a vessel being sold
for export only if, before the sale of such vessel, any item
listed in subparagraph (B) containing polychlorinated
biphenyls is removed from the vessel.
‘‘(B) Subparagraph (A) covers any transformer, large
high or low voltage capacitor, or hydraulic or heat transfer
fluid.’’.
(2) Section 7306a of such title is amended—
(A) in the heading, by adding at the end the
following: ‘‘or operational training’’;
(B) in subsection (a), by inserting ‘‘or oper-
ational training’’ after ‘‘purposes’’; and
(C) by adding at the end the following:
‘‘(c) RELATIONSHIP TO OTHER LAWS.—The sinking
of a vessel for an experimental purpose or for operational
training pursuant to subsection (a) is not—
360
‘‘(1) a disposal or a distribution in commerce
under section 6 or 12(a) of the Toxic Substances
Control Act (15 U.S.C. 2605 and 2611(a)); or
‘‘(2) the transport of material for the purpose
of dumping it into ocean waters, or the dumping of
material transported from a location outside the
United States, under section 101 of the Marine Pro-
tection, Research, and Sanctuaries Act of 1972 (33
U.S.C. 1411).’’.
(b) NATIONAL DEFENSE RESERVE FLEET.—(1) Sec-
tion 510(i) of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1160(i)) is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(i)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(2)(A) Subject to subparagraph (B), the sale under
this subsection of a vessel from the National Defense Re-
serve Fleet for export, or any subsequent resale of a vessel
sold from the Fleet for export—
‘‘(i) is not a disposal or a distribution in com-
merce under section 6 or 12(a) of the Toxic Sub-
stances Control Act (15 U.S.C. 2605 and 2611(a))
or an export of hazardous waste under section 3017
of the Solid Waste Disposal Act (42 U.S.C. 6938);
and
361
‘‘(ii) is not subject to subsection (b) of section
12 of the Toxic Substances Control Act (15 U.S.C.
2611).
‘‘(B)(i) Subparagraph (A) applies to a vessel being
sold for export only if, before the sale of such vessel, any
item listed in clause (ii) containing polychlorinated
biphenyls is removed from the vessel.
‘‘(ii) Clause (i) covers any transformer, large high or
low voltage capacitor, or hydraulic or heat transfer fluid.’’.
(2) Section 6 of the National Maritime Heritage Act
of 1994 (Public Law 103–451; 108 Stat. 4776; 16 U.S.C.
5405) is amended—
(A) in subsections (a)(1) and (b)(2)—
(i) by inserting ‘‘or 510(i)’’ after ‘‘508’’;
and
(ii) 
by 
inserting 
‘‘or 
1160(i)’’ 
after
‘‘1158’’; and
(B) in subsection (c)(1)(A), by striking out
‘‘1999’’ and inserting in lieu thereof ‘‘2001’’.
SEC. 1022. AUTHORITY TO ENTER INTO A LONG-TERM
CHARTER FOR A VESSEL IN SUPPORT OF THE
SURVEILLANCE 
TOWED-ARRAY 
SENSOR
(SURTASS) PROGRAM.
The Secretary of the Navy is authorized to enter into
a contract in accordance with section 2401 of title 10,
362
United States Code, for the charter, for a period through
fiscal year 2003, of the vessel RV CORY CHOUEST
(United States official number 933435) in support of the
Surveillance Towed-Array Sensor (SURTASS) program.
SEC. 1023. TRANSFER OF TWO SPECIFIED OBSOLETE TUG-
BOATS OF THE ARMY.
(a) AUTHORITY TO TRANSFER VESSELS.—The Sec-
retary of the Army may transfer the two obsolete tugboats
of the Army described in subsection (b) to the Brownsville
Navigation District, Brownsville, Texas.
(b) VESSELS COVERED.—Subsection (a) applies to
the following two decommissioned tugboats of the Army,
each of which is listed as of the date of the enactment
of this Act as being surplus to the needs of the Army:
the Normandy (LT–1971) and the Salerno (LT–1953).
(c) TRANSFERS TO BE AT NO COST TO UNITED
STATES.—A transfer authorized by this section shall be
made at no cost to the United States.
(d) TERMS AND CONDITIONS.—The Secretary may
require such additional terms and conditions in connection
with the transfers authorized by this section as the Sec-
retary considers appropriate.
363
SEC. 1024. NAMING OF A DDG–51 CLASS DESTROYER THE
U.S.S. THOMAS F. CONNOLLY.
It is the sense of Congress that the Secretary of the
Navy should name a guided missile destroyer of the DDG–
51 class the U.S.S. Thomas F. Connolly, in honor of Vice
Admiral Thomas F. Connolly (1909–1996), of the State
of Minnesota, who during an active-duty naval career ex-
tending from 1933 to 1971 became a leading architect of
the modern United States Navy.
SEC. 1025. CONGRESSIONAL REVIEW PERIOD WITH RE-
SPECT TO TRANSFER OF THE EX-U.S.S. MID-
WAY (CV–41).
In applying section 7306 of title 10, United States
Code, with respect to the transfer of the decommissioned
aircraft carrier ex-U.S.S. MIDWAY (CV–41), subsection
(d)(1)(B) of that section shall be applied by substituting
‘‘30 calendar days’’ for ‘‘60 days of continuous session of
Congress’’.
Subtitle C—Counter-Drug
Activities
SEC. 1031. PROHIBITION ON USE OF NATIONAL GUARD FOR
CIVIL-MILITARY ACTIVITIES UNDER STATE
DRUG INTERDICTION AND COUNTER-DRUG
ACTIVITIES PLAN.
Section 112 of title 32, United States Code, is
amended—
364
(1) by redesignating subsections (g) and (h) as
subsections (h) and (i), respectively; and
(2) by inserting after subsection (f) the follow-
ing new subsection:
‘‘(g) PROHIBITION ON CERTAIN CIVIL-MILITARY AC-
TIVITIES.—Funds provided under this section may not be
used to conduct activities, including community-outreach
programs, designed to reduce the demand for illegal drugs
among persons who are not members of the National
Guard or their dependents.’’.
SEC. 1032. ASSIGNMENT OF DEPARTMENT OF DEFENSE
PERSONNEL TO ASSIST IMMIGRATION AND
NATURALIZATION SERVICE AND CUSTOMS
SERVICE.
(a) ASSIGNMENT AUTHORITY OF SECRETARY OF DE-
FENSE.—Chapter 18 of title 10, United States Code, is
amended by inserting after section 374 the following new
section:
‘‘§ 374a. Assignment of personnel to assist border pa-
trol and control
‘‘(a) ASSIGNMENT AUTHORIZED.—The Secretary of
Defense may assign up to 10,000 Department of Defense
personnel at any one time to assist—
365
‘‘(1) the Immigration and Naturalization Serv-
ice in preventing the entry of terrorists, drug traf-
fickers, and illegal aliens into the United States; and
‘‘(2) the United States Customs Service in the
inspection of cargo, vehicles, and aircraft at points
of entry into the United States.
‘‘(b) REQUEST FOR ASSIGNMENT.—The assignment
of Department of Defense personnel under subsection (a)
may only occur—
‘‘(1) at the request of the Attorney General, in
the case of an assignment to the Immigration and
Naturalization Service; and
‘‘(2) at the request of the Secretary of the
Treasury, in the case of an assignment to the Unit-
ed States Customs Service.’’.
‘‘(c) REIMBURSEMENT REQUIREMENT.—Section 377
of this title shall apply in the case of Department of De-
fense personnel assigned under subsection (a).’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 374 the following new
item:
‘‘374a. Assignment of personnel to assist border patrol and control.’’.
366
SEC. 1033. ANNUAL REPORT ON DEVELOPMENT AND DE-
PLOYMENT OF NARCOTICS DETECTION TECH-
NOLOGIES.
(a) REPORT REQUIREMENT.—Not later than Decem-
ber 1st of each year, the Director of the Office of National
Drug Control Policy shall submit to Congress and the
President a report on the development and deployment of
narcotics detection technologies by Federal agencies. Each
such report shall be prepared in consultation with the Sec-
retary of Defense, the Secretary of State, the Secretary
of Transportation, and the Secretary of the Treasury.
(b) MATTERS TO BE INCLUDED.—Each report under
subsection (a) shall include—
(1) a description of each project implemented
by a Federal agency relating to the development or
deployment of narcotics detection technology;
(2) the agency responsible for each project de-
scribed in paragraph (1);
(3) the amount of funds obligated or expended
to carry out each project described in paragraph (1)
during the fiscal year in which the report is submit-
ted or during any fiscal year preceding the fiscal
year in which the report is submitted;
(4) the amount of funds estimated to be obli-
gated or expended for each project described in
paragraph (1) during any fiscal year after the fiscal
367
year in which the report is submitted to Congress;
and
(5) a detailed timeline for implementation of
each project described in paragraph (1).
Subtitle D—Miscellaneous Report
Requirements and Repeals
SEC. 1041. REPEAL OF MISCELLANEOUS OBSOLETE RE-
PORTS REQUIRED BY PRIOR DEFENSE AU-
THORIZATION ACTS.
(a) REPORT ON REMOVAL OF BASIC POINT DEFENSE
MISSILE SYSTEM FROM NAVAL AMPHIBIOUS VESSELS.—
Section 1437 of the Department of Defense Authorization
Act, 1986 (Public Law 99–145; 99 Stat. 757), is repealed.
(b) REPORT CONCERNING
THE STRETCHOUT
OF
MAJOR DEFENSE ACQUISITION PROGRAMS.—Section 117
of the National Defense Authorization Act, Fiscal Year
1989 (Public Law 100–456; 102 Stat. 1933), is repealed.
(c) REPORT CONCERNING THE B–2 AIRCRAFT PRO-
GRAM.—Section 115 of the National Defense Authoriza-
tion Act for Fiscal Years 1990 and 1991 (Public Law
101–189; 103 Stat. 1373) is repealed.
368
SEC. 1042. REPEAL OF ANNUAL REPORT REQUIREMENT RE-
LATING TO TRAINING OF SPECIAL OPER-
ATIONS FORCES WITH FRIENDLY FOREIGN
FORCES.
Section 2011 of title 10, United States Code, is
amended by striking out subsection (e).
SEC. 1043. REPORT ON ANTI-TERRORISM ACTIVITIES.
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit
to Congress a report, in classified and unclassified form,
describing—
(1) the programs designed to carry out anti-ter-
rorism activities of the Department of Defense;
(2) any deficiencies in those programs; and
(3) any actions taken by the Secretary to im-
prove implementation of such programs.
Subtitle E—Other Matters
SEC. 1051. AUTHORITY FOR SPECIAL AGENTS OF THE DE-
FENSE CRIMINAL INVESTIGATIVE SERVICE
TO EXECUTE WARRANTS AND MAKE AR-
RESTS.
(a) AUTHORITY.—Chapter 81 of title 10, United
States Code, is amended by inserting after section 1585
the following new section:
369
‘‘§ 1585a. Special agents of the Defense Criminal In-
vestigative Service: authority to execute
warrants and make arrests
‘‘(a) AUTHORITY.—The Secretary of Defense may
authorize any DCIS special agent—
‘‘(1) to execute and serve any warrant or other
process issued under the authority of the United
States; and
‘‘(2) to make arrests without a warrant—
‘‘(A) for any offense against the United
States committed in the presence of that agent;
and
‘‘(B) for any felony cognizable under the
laws of the United States if the agent has prob-
able cause to believe that the person to be ar-
rested has committed or is committing the fel-
ony.
‘‘(b) ATTORNEY GENERAL GUIDELINES.—Authority
of a DCIS special agent under subsection (a) may be exer-
cised only in accordance with guidelines approved by the
Attorney General.
‘‘(c) DCIS SPECIAL AGENT DEFINED.—In this sec-
tion, the term ‘DCIS special agent’ means an employee
of the Department of Defense who is a special agent of
the Defense Criminal Investigative Service (or any succes-
sor to that service).’’.
370
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 1585 the following new
item:
‘‘1585a. Special agents of the Defense Criminal Investigative Service: authority
to execute warrants and make arrests.’’.
SEC. 1052. STUDY OF INVESTIGATIVE PRACTICES OF MILI-
TARY CRIMINAL INVESTIGATIVE ORGANIZA-
TIONS RELATING TO SEX CRIMES.
(a) INDEPENDENT STUDY REQUIRED.—(1) The Sec-
retary of Defense shall provide for an independent study
of the policies, procedures, and practices of the military
criminal investigative organizations for the conduct of in-
vestigations of complaints of sex crimes and other criminal
sexual misconduct arising in the Armed Forces.
(2) The Secretary shall provide for the study to be
conducted by the National Academy of Public Administra-
tion. The amount of a contract for the study may not ex-
ceed $2,000,000.
(3) The Secretary shall require that all components
of the Department of Defense cooperate fully with the or-
ganization carrying out the study.
(b) MATTERS TO BE INCLUDED IN STUDY.—The
Secretary shall require that the organization conducting
the study under this section specifically consider each of
the following matters:
371
(1) The need (if any) for greater organizational
independence and autonomy for the military criminal
investigative organizations than exists under current
chain-of-command structures within the military de-
partments.
(2) The authority of each of the military crimi-
nal investigative organizations to investigate allega-
tions of sex crimes and other criminal sexual mis-
conduct and the policies of those organizations for
carrying out such investigations.
(3) The training (including training in skills
and techniques related to the conduct of interviews)
provided by each of those organizations to agents or
prospective agents responsible for conducting or pro-
viding support to investigations of alleged sex crimes
and other criminal sexual misconduct, including—
(A) the extent to which that training is
comparable to the training provided by the Fed-
eral Bureau of Investigation and other civilian
law enforcement agencies; and
(B) the coordination of training and inves-
tigative policies related to alleged sex crimes
and other criminal sexual misconduct of each of
those organizations with the Federal Bureau of
372
Investigation and other civilian Federal law en-
forcement agencies.
(4) The procedures and relevant professional
standards of each military criminal investigative or-
ganization with regard to recruitment and hiring of
agents, including an evaluation of the extent to
which those procedures and standards provide for—
(A) sufficient screening of prospective
agents based on background investigations; and
(B) obtaining sufficient information about
the qualifications and relevant experience of
prospective agents.
(5) The advantages and disadvantages of estab-
lishing, within each of the military criminal inves-
tigative organizations or within the Defense Crimi-
nal Investigative Service only, of a special unit for
the investigation of alleged sex crimes and other
criminal sexual misconduct.
(6) The clarity of guidance for, and consistency
of investigative tactics used by, each of the military
criminal investigative organizations for the investiga-
tion of alleged sex crimes and other criminal sexual
misconduct, together with a comparison with the
guidance and tactics used by the Federal Bureau of
373
Investigation and other civilian law enforcement
agencies for such investigations.
(7) The number of allegations of agent mis-
conduct in the investigation of sex crimes and other
criminal sexual misconduct for each of those organi-
zations, together with a comparison with the number
of such allegations concerning agents of the Federal
Bureau of Investigation and other civilian law en-
forcement agencies for such investigations.
(8) The procedures of each of the military
criminal investigative organizations for administra-
tive identification (known as ‘‘titling’’) of persons
suspected of committing sex crimes or other criminal
sexual misconduct, together with a comparison with
the comparable procedures of the Federal Bureau of
Investigation and other civilian Federal law enforce-
ment agencies for such investigations.
(9) The accuracy, timeliness, and completeness
of reporting of sex crimes and other criminal sexual
misconduct by each of the military criminal inves-
tigative organizations to the National Crime Infor-
mation Center maintained by the Department of
Justice.
(10) Any recommendation for legislation or ad-
ministrative action to revise the organizational or
374
operational arrangements of the military criminal in-
vestigative organizations or to alter recruitment,
training, or operational procedures, as they pertain
to the investigation of sex crimes and other criminal
sexual misconduct.
(c) REPORT.—(1) The Secretary of Defense shall re-
quire the organization conducting the study under this
section to submit to the Secretary a report on the study
not later than one year after the date of the enactment
of this Act. The organization shall include in the report
its findings and conclusions concerning each of the mat-
ters specified in subsection (b).
(2) The Secretary shall submit the report under para-
graph (1), together with the Secretary’s comments on the
report, to Congress not later than 30 days after the date
on which the report is submitted to the Secretary under
paragraph (1).
(d) MILITARY CRIMINAL INVESTIGATIVE ORGANIZA-
TION DEFINED.—For the purposes of this section, the
term ‘‘military criminal investigative organization’’ means
any of the following:
(1) The Army Criminal Investigation Com-
mand.
(2) The Naval Criminal Investigative Service.
375
(3) The Air Force Office of Special Investiga-
tions.
(4) The Defense Criminal Investigative Service.
(e) CRIMINAL SEXUAL MISCONDUCT DEFINED.—For
the purposes of this section, the term ‘‘criminal sexual
misconduct’’ means conduct by a member of the Armed
Forces involving sexual abuse, sexual harassment, or other
sexual misconduct that constitutes an offense under the
Uniform Code of Military Justice.
SEC. 1053. TECHNICAL AND CLERICAL AMENDMENTS.
(a) TITLE 10, UNITED STATES CODE.—Title 10,
United States Code, is amended as follows:
(1) The tables of chapters at the beginning of
subtitle A, and at the beginning of part I of subtitle
A, are each amended by striking out ‘‘471’’ in the
item relating to chapter 23 and inserting in lieu
thereof ‘‘481’’.
(2) The tables of chapters at the beginning of
subtitle A, and at the beginning of part IV of sub-
title A, are each amended by striking out ‘‘2540’’ in
the item relating to chapter 152 and inserting in
lieu thereof ‘‘2541’’.
(3) Section 116(b)(2) is amended by striking
out ‘‘such subsection’’ and inserting in lieu thereof
‘‘subsection (a)’’.
376
(4) Section 129c(e) is amended by striking out
‘‘section 115a(g)(2)’’ and inserting in lieu thereof
‘‘section 115a(e)(2)’’.
(5) Section 382(g) is amended by striking out
‘‘the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1997’’ and insert-
ing in lieu thereof ‘‘September 23, 1996’’.
(6) The table of sections at the beginning of
subchapter I of chapter 21 is amended by striking
out the items relating to sections 424 and 425 and
inserting in lieu thereof the following:
‘‘424. Disclosure of organizational and personnel information: exemption for De-
fense Intelligence Agency, National Reconnaissance Office, and
National Imagery and Mapping Agency.’’.
(7) Section 445 is amended—
(A) by striking out ‘‘(1)’’ before ‘‘Except
with’’;
(B) by redesignating subparagraphs (A),
(B), and (C) as paragraphs (1), (2), and (3),
respectively;
(C) by striking out ‘‘(2)’’ before ‘‘When-
ever it appears’’ and inserting in lieu thereof
‘‘(b) INJUNCTIVE RELIEF.—’’; and
(D) by striking out ‘‘paragraph (1)’’ and
inserting in lieu thereof ‘‘subsection (a)’’.
(8) Section 858b is amended in the first sen-
tence by striking out ‘‘forfeiture’’ and all that fol-
377
lows through ‘‘due that member’’ and inserting in
lieu thereof ‘‘forfeiture of pay, or of pay and allow-
ances, due that member’’.
(9) Section 943(c) is amended—
(A) in the third sentence, by striking out
‘‘such positions’’ and inserting in lieu thereof
‘‘positions referred to in the preceding sen-
tences’’; and
(B) by capitalizing the initial letter of the
third word of the subsection heading.
(10) Section 954 is amended by striking out
‘‘this’’ and inserting in lieu thereof ‘‘his’’.
(11) Section 972(b) is amended by striking out
‘‘the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1996’’ in the mat-
ter preceding paragraph (1) and inserting in lieu
thereof ‘‘February 10, 1996’’.
(12) Section 976(f) is amended by striking out
‘‘shall,’’ and all that follows and inserting in lieu
thereof ‘‘shall be fined under title 18 or imprisoned
not more than 5 years, or both, except that, in the
case of an organization (as defined in section 18 of
such title), the fine shall not be less than $25,000.’’.
(13) Section 977 is amended—
378
(A) in subsection (c), by striking out ‘‘Be-
ginning on October 1, 1996, not more than’’
and inserting in lieu thereof ‘‘Not more than’’;
and
(B) in subsection (d)(2), by striking out
‘‘before October 1, 1996,’’ and all that follows
through ‘‘so assigned’’ the second place it ap-
pears.
(14) Section 1129(c) is amended—
(A) by striking out ‘‘the date of the enact-
ment of this section,’’ and inserting in lieu
thereof ‘‘November 30, 1993,’’; and
(B) by striking out ‘‘before the date of the
enactment of this section or’’ and inserting in
lieu thereof ‘‘before such date or’’.
(15) Section 1151(b) is amended by striking
out ‘‘WITH’’ in the subsection heading and inserting
in lieu thereof ‘‘WITH’’.
(16) Section 1152(g) is amended by inserting
‘‘(1)’’ before ‘‘The Secretary may’’.
(17) Section 1408(d) is amended—
(A) by striking out ‘‘TO’’ in the subsection
heading and inserting in lieu thereof ‘‘TO’’; and
(B) by redesignating the second paragraph
(6) as paragraph (7).
379
(18) Section 1599c(c)(1)(F) is amended by
striking out ‘‘Sections 106(f)’’ and inserting in lieu
thereof ‘‘Sections 106(e)’’.
(19) Section 1763 is amended—
(A) by striking out ‘‘On and after October
1, 1993, the Secretary of Defense’’ and insert-
ing in lieu thereof ‘‘The Secretary of Defense’’;
and
(B) by striking out ‘‘secretaries’’ and in-
serting in lieu thereof ‘‘Secretaries’’.
(20) Section 2010(e) is repealed.
(21) Section 2208(k) is repealed.
(22)(A) Section 2306(h) is amended by insert-
ing ‘‘for the purchase of property’’ after ‘‘Multiyear
contracting authority’’.
(B)(i) The heading of section 2306b is amended
to read as follows:
‘‘§ 2306b. Multiyear contracts: acquisition of prop-
erty’’.
(ii) The item relating to such section in the
table of sections at the beginning of chapter 137 of
such title is amended to read as follows:
‘‘2306b. Multiyear contracts: acquisition of property.’’.
(23) Section 2306b(k) is amended by striking
out ‘‘this subsection’’ in the first sentence and in-
serting in lieu thereof ‘‘this section’’.
380
(24) Section 2315(a) is amended by striking
out ‘‘the Information Technology Management Re-
form Act of 1996’’ and inserting in lieu thereof ‘‘di-
vision E of the Clinger-Cohen Act of 1996 (40
U.S.C. 1401 et seq.)’’.
(25) Section 2371a is amended by inserting
‘‘Defense’’ before ‘‘Advanced Research Projects
Agency’’.
(26) Section 2401a(a) is amended by striking
out ‘‘leasing of such vehicles’’ and inserting in lieu
thereof ‘‘such leasing’’.
(27) Section 2466(e) is repealed.
(28) Section 2684(b) is amended by striking
out ‘‘, United States Code,’’.
(29) Section 2885 is amended by striking out
‘‘five years after the date of the enactment of the
National Defense Authorization Act for Fiscal Year
1996’’ and inserting in lieu thereof ‘‘on February
10, 2001’’.
(30) Section 12733(3) is amended—
(A) by inserting a comma after ‘‘(B)’’; and
(B) by striking out ‘‘the date of the enact-
ment of the National Defense Authorization Act
for Fiscal Year 1997’’ and inserting in lieu
thereof ‘‘September 23, 1996,’’.
381
(b) TITLE 37, UNITED STATES CODE.—Section
205(d) of title 37, United States Code, is amended by
striking out the period after ‘‘August 1, 1979’’ and insert-
ing in lieu thereof a comma.
(c) PUBLIC LAW 104–201.—Effective as of Septem-
ber 23, 1996, and as if included therein as enacted, the
National Defense Authorization Act for Fiscal Year 1997
(Public Law 104–201) is amended as follows:
(1) Section 367 (110 Stat. 2496) is amended—
(A) in subsection (a), by striking out
‘‘Subchapter II of chapter’’ and inserting in lieu
thereof ‘‘Chapter’’; and
(B) in subsection (b), by striking out ‘‘sub-
chapter’’ and inserting in lieu thereof ‘‘chap-
ter’’.
(2) Section 614(b)(2)(B) (110 Stat. 2544) is
amended by striking out ‘‘the period’’ and inserting
in lieu thereof ‘‘the semicolon’’.
(3) Section 802(1) (110 Stat. 2604) is amended
by striking out ‘‘1995’’ in the first quoted matter
therein and inserting in lieu thereof ‘‘1996’’.
(4) Section 829(c) (110 Stat. 2612) is amend-
ed—
382
(A) in paragraph (2), by striking out ‘‘Sec-
tion 2502(b)’’ and inserting in lieu thereof
‘‘Section 2502(c)’’; and
(B) by redesignating paragraph (3) as sub-
paragraph (C) of paragraph (2).
(d) OTHER
ANNUAL
DEFENSE
AUTHORIZATION
ACTS.—
(1) of The National Defense Authorization Act
for Fiscal Year 1996 (Public Law 104–106) is
amended as follows:
(A) Section 533(b) (110 Stat. 315) is
amended by inserting before the period at the
end the following: ‘‘and the amendments made
by subsection (b), effective as of October 5,
1994’’.
(B) Section 1501(d)(1) (110 Stat. 500) is
amended by striking out ‘‘337(b)’’ and ‘‘2717’’
and inserting in lieu thereof ‘‘377(b)’’ and
‘‘2737’’, respectively.
(2) Section 845 of the National Defense Au-
thorization Act for Fiscal Year 1994 (Public Law
103–160; 10 U.S.C. 2371 note) is amended—
(A) in subsection (a), by inserting ‘‘De-
fense’’ before ‘‘Advanced’’; and
383
(B) in the section heading, by inserting
‘‘DEFENSE’’ after the third word.
(3) The National Defense Authorization Act for
Fiscal Year 1993 (Public Law 102–484) is amended
as follows:
(A) Section 812(c) (10 U.S.C. 1723 note)
is amended by inserting ‘‘and Technology’’ after
‘‘for Acquisition’’.
(B) Subsection (e) of section 4471 (10
U.S.C. 2501 note) is amended—
(i) by realigning that subsection so as
to be flush to the margin; and
(ii) by capitalizing the initial letter of
the third word of the subsection heading.
(4) Section 807(b)(2)(A) of the National De-
fense Authorization Act for Fiscal Years 1992 and
1993 (Public Law 102–190; 10 U.S.C. 2320 note)
is amended by inserting before the period the follow-
ing: ‘‘and Technology’’.
(5) The National Defense Authorization Act for
Fiscal Year 1991 (Public Law 101–510) is amended
as follows:
(A) Section 1205 (10 U.S.C. 1746 note) is
amended by striking out ‘‘Under Secretary of
Defense for Acquisition’’ each place it appears
384
and inserting in lieu thereof ‘‘Under Secretary
of Defense for Acquisition and Technology’’.
(B) Section 2921 (10 U.S.C. 2687 note) is
amended—
(i) in subsection (e)(3)(B), by striking
out ‘‘Subcommittees’’ and inserting in lieu
thereof ‘‘Subcommittee’’; and
(ii) in subsection (f)(2), by striking
out ‘‘the Committees on Armed Services of
the Senate and House of Representatives’’
and inserting in lieu thereof ‘‘the Commit-
tee on Armed Services of the Senate and
the Committee on National Security of the
House of Representatives’’.
(6) Section 1121(c) of the National Defense
Authorization Act for Fiscal Years 1988 and 1989
(Public Law 100–180; 10 U.S.C. 113 note) is
amended by striking out ‘‘under this section—’’ and
all that follow through ‘‘fiscal year 1990’’ and in-
serting in lieu thereof ‘‘under this section may not
exceed 5,000 during any fiscal year’’.
(d) TITLE 5, UNITED STATES CODE.—Title 5, Unit-
ed States Code, is amended as follows:
385
(1) Section 3329(b) is amended by striking out
‘‘a position described in subsection (c)’’ the second
place it appears.
(2) Section 5315 is amended—
(A) in the item relating to the Chief Infor-
mation Officer of the Department of the Inte-
rior, by inserting ‘‘the’’ before ‘‘Interior’’; and
(B) in the item relating to the Chief Infor-
mation Officer of the Department of the Treas-
ury, by inserting ‘‘the’’ before ‘‘Treasury’’.
(3) Section 5316 is amended by striking out
‘‘Atomic Energy’’ after ‘‘Assistant to the Secretary
of Defense for’’ and inserting in lieu thereof ‘‘Nu-
clear and Chemical and Biological Defense Pro-
grams’’.
(e) ACQUISITION POLICY STATUTES.—
(1) Section 309 of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 259)
is amended by striking out ‘‘and’’ at the end of sub-
section (b)(2).
(2) The Office of Federal Procurement Policy
Act is amended as follows:
(A) The item relating to section 27 in the
table of contents in section 1 is amended to
read as follows:
386
‘‘Sec. 27. Restrictions on disclosing and obtaining contractor bid or proposal in-
formation or source selection information.’’.
(B) Section 6(d) (41 U.S.C. 405(d)) is
amended—
(i) by striking out the period at the
end of paragraph (5)(J) and inserting in
lieu thereof a semicolon;
(ii) by moving paragraph (6) two ems
to the left; and
(iii) in paragraph (12), by striking out
‘‘small business’’ and inserting in lieu
thereof ‘‘small businesses’’.
(C) Section 35(b)(2) (41 U.S.C. 431(b)(2))
is amended by striking out ‘‘commercial’’ and
inserting in lieu thereof ‘‘commercially avail-
able’’.
(3) Section 6 of the Contract Disputes Act of
1978 (41 U.S.C. 605) is amended in subsections (d)
and (e) by striking out ‘‘(as in effect on September
30, 1995)’’ each place it appears.
(4) Subsections (d)(1) and (e) of section 16 of
the Small Business Act (15 U.S.C. 645) are each
amended by striking out ‘‘concerns’’ and inserting in
lieu thereof ‘‘concern’’.
(f) COORDINATION WITH OTHER AMENDMENTS.—
For purposes of applying amendments made by provisions
387
of this Act other than provisions of this section, this sec-
tion shall be treated as having been enacted immediately
before the other provisions of this Act.
SEC. 1054. DISPLAY OF POW/MIA FLAG.
(a) REQUIRED DISPLAY.—The POW/MIA flag shall
be displayed at the locations specified in subsection (c)
each year on POW/MIA flag display days. Such display
shall serve (1) as the symbol of the Nation’s concern and
commitment to achieving the fullest possible accounting
of Americans who, having been prisoners of war or missing
in action, still remain unaccounted for, and (2) as the
symbol of the Nation’s commitment to achieving the full-
est possible accounting for Americans who in the future
may become prisoners of war, missing in action, or other-
wise unaccounted for as a result of hostile action.
(b) DAYS FOR FLAG DISPLAY.—(1) For purposes of
this section, POW/MIA flag display days are the following:
(A) Armed Forces Day, the third Saturday in
May.
(B) Memorial Day, the last Monday in May.
(C) Flag Day, June 14.
(D) Independence Day, July 4.
(E) National POW/MIA Recognition Day.
(F) Veterans Day, November 11.
388
(2) In the case of display at United States Postal
Service post offices (required by subsection (c)(8)), POW/
MIA flag display days in any year include, in addition to
the days specified in paragraph (1), the last business day
before each such day that itself is not a business day.
(c) LOCATIONS FOR FLAG DISPLAY.—The locations
for the display of the POW/MIA flag under this section
are the following:
(1) The Capitol.
(2) The White House.
(3) The Korean War Veterans Memorial and
the Vietnam Veterans Memorial.
(4) Each national cemetery.
(5) The buildings containing the primary offices
of—
(A) the Secretary of State;
(B) the Secretary of Defense;
(C) the Secretary of Veterans Affairs; and
(D) the Director of the Selective Service
System.
(6) Each major military installation, as des-
ignated by the Secretary of Defense.
(7) Each Department of Veterans Affairs medi-
cal center.
389
(8) Each United States Postal Service post of-
fice.
(d) COORDINATION WITH OTHER DISPLAY REQUIRE-
MENT.—Display of the POW/MIA flag at the Capitol pur-
suant to paragraph (1) of subsection (c) is in addition to
the display of that flag in the Rotunda of the Capitol re-
quired by Senate Concurrent Resolution 5 of the 101st
Congress, agreed to on February 22, 1989 (103 Stat.
2533).
(e) REQUIREMENTS CONCERNING DISPLAY AT SPEC-
IFIED LOCATIONS.—(1) Display of the POW/MIA flag at
the buildings specified in paragraphs (1), (2), (5), and (7)
of subsection (c) shall be on, or on the grounds of, each
such building.
(2) Display of that flag pursuant to paragraph (5)
of subsection (c) at the buildings containing the primary
offices of the officials specified in that paragraph shall be
in an area visible to the public.
(3) Display of that flag at United States Postal Serv-
ice post offices pursuant to paragraph (8) of subsection
(c) shall be on the grounds or in the public lobby of each
such post office.
(f) POW/MIA FLAG DEFINED.—As used in this sec-
tion, the term ‘‘POW/MIA flag’’ means the National
League of Families POW/MIA flag recognized officially
390
and designated by section 2 of Public Law 101–355 (36
U.S.C. 189).
(g) REGULATIONS FOR IMPLEMENTATION.—Within
180 days after the date of the enactment of this Act, the
head of each department, agency, or other establishment
responsible for a location specified in subsection (c) (other
than the Capitol) shall prescribe such regulations as nec-
essary to carry out this section.
(h) PROCUREMENT AND DISTRIBUTION OF FLAGS.—
Within 30 days after the date of the enactment of this
Act, the Administrator of General Services shall procure
POW/MIA flags and distribute them as necessary to carry
out this section.
(i) REPEAL OF PRIOR LAW.—Section 1084 of Public
Law 102–190 (36 U.S.C. 189 note) is repealed.
(j) DAILY DISPLAY OF FLAG AT DEPARTMENT OF
VETERANS AFFAIRS MEDICAL CENTERS.—In addition to
the display required by subsection (a), the POW/MIA flag
shall be displayed on, or on the grounds of, each Depart-
ment of Veterans Affairs medical center on every day on
which the flag of the United States is displayed.
391
SEC. 1055. CERTIFICATION REQUIRED BEFORE OBSERV-
ANCE OF MORATORIUM ON USE BY ARMED
FORCES OF ANTIPERSONNEL LANDMINES.
Any moratorium imposed by law (whether enacted be-
fore, on, or after the date of the enactment of this Act)
on the use of antipersonnel landmines by the Armed
Forces may be implemented only if (and after) the Sec-
retary of Defense, after consultation with the Chairman
of the Joint Chiefs of Staff, certifies to Congress that—
(1) the moratorium will not adversely affect the
ability of United States forces to defend against at-
tack on land by hostile forces; and
(2) the Armed Forces have systems that are ef-
fective substitutes for antipersonnel landmines.
SEC. 1056. PROTECTION OF SAFETY-RELATED INFORMA-
TION VOLUNTARILY PROVIDED BY AIR CAR-
RIERS.
(a) AUTHORITY TO PROTECT INFORMATION.—Sec-
tion 2640 of title 10, United States Code, is amended—
(1) by redesignating subsections (h) and (i) as
subsections (i) and (j), respectively; and
(2) by inserting after subsection (g) the follow-
ing new subsection:
‘‘(h) AUTHORITY TO PROTECT SAFETY-RELATED IN-
FORMATION VOLUNTARILY PROVIDED BY AN AIR CAR-
RIER.—(1) In any case in which an air carrier voluntarily
392
provides safety-related information to the Secretary for
purposes of this section, the Secretary may (notwithstand-
ing any other provision of law) withhold the information
from public disclosure if the Secretary determines that—
‘‘(A) disclosure of the information would inhibit
the air carrier from voluntarily providing safety-re-
lated information to the Secretary; and
‘‘(B) the information would aid—
‘‘(i) the Secretary in carrying out his re-
sponsibilities under this section; or
‘‘(ii) the head of another agency in carry-
ing out the safety responsibilities of the agency.
‘‘(2) If the Secretary provides to the head of another
agency safety-related information described in paragraph
(1) with respect to which the Secretary has made a deter-
mination described in that paragraph, the head of that
agency shall (notwithstanding any other provision of law)
withhold the information from public disclosure.’’.
(b) APPLICABILITY.—Subsection (h) of section 2640
of title 10, United States Code, as added by subsection
(a), shall apply with respect to requests for information
made on or after the date of the enactment of this Act.
393
SEC. 1057. NATIONAL GUARD CHALLENGE PROGRAM TO
CREATE 
OPPORTUNITIES 
FOR 
CIVILIAN
YOUTH.
(a) PROGRAM AUTHORITY.—Chapter 5 of title 32,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 509. National Guard Challenge Program of oppor-
tunities for civilian youth
‘‘(a) PROGRAM AUTHORITY
AND PURPOSE.—The
Secretary of Defense, acting through the Chief of the Na-
tional Guard Bureau, may conduct a National Guard civil-
ian youth opportunities program (to be known as the ‘Na-
tional Guard Challenge Program’) to use the National
Guard to provide military-based training, including super-
vised work experience in community service and conserva-
tion projects, to civilian youth who cease to attend second-
ary school before graduating so as to improve the life skills
and employment potential of such youth.
‘‘(b) CONDUCT OF THE PROGRAM.—The Secretary of
Defense shall provide for the conduct of the National
Guard Challenge Program in such States as the Secretary
considers to be appropriate, except that Federal expendi-
tures under the program may not exceed $50,000,000 for
any fiscal year.
‘‘(c) PROGRAM AGREEMENTS.—(1) To carry out the
National Guard Challenge Program in a State, the Sec-
394
retary of Defense shall enter into an agreement with the
Governor of the State or, in the case of the District of
Columbia, with the commanding general of the District
of Columbia National Guard, under which the Governor
or the commanding general will establish, organize, and
administer the National Guard Challenge Program in the
State.
‘‘(2) The agreement may provide for the Secretary
to provide funds to the State for civilian personnel costs
attributable to the use of civilian employees of the Na-
tional Guard in the conduct of the National Guard Chal-
lenge Program.
‘‘(d) MATCHING FUNDS REQUIRED.—The amount of
assistance provided under this section to a State program
of the National Guard Challenge Program may not ex-
ceed—
‘‘(1) for fiscal year 1998, 75 percent of the
costs of operating the State program during that
year;
‘‘(2) for fiscal year 1999, 70 percent of the
costs of operating the State program during that
year;
‘‘(3) for fiscal year 2000, 65 percent of the
costs of operating the State program during that
year; and
395
‘‘(4) for fiscal year 2001 and each subsequent
fiscal year, 60 percent of the costs of operating the
State program during that year.
‘‘(e) PERSONS ELIGIBLE TO PARTICIPATE IN PRO-
GRAM.—A school dropout from secondary school shall be
eligible to participate in the National Guard Challenge
Program. The Secretary of Defense shall prescribe the
standards and procedures for selecting participants from
among school dropouts.
‘‘(f) AUTHORIZED BENEFITS FOR PARTICIPANTS.—
(1) To the extent provided in an agreement entered into
in accordance with subsection (c) and subject to the ap-
proval of the Secretary of Defense, a person selected for
training in the National Guard Challenge Program may
receive the following benefits in connection with that train-
ing:
‘‘(A) Allowances for travel expenses, personal
expenses, and other expenses.
‘‘(B) Quarters.
‘‘(C) Subsistence.
‘‘(D) Transportation.
‘‘(E) Equipment.
‘‘(F) Clothing.
‘‘(G) Recreational services and supplies.
‘‘(H) Other services.
396
‘‘(I) Subject to paragraph (2), a temporary sti-
pend upon the successful completion of the training,
as characterized in accordance with procedures pro-
vided in the agreement.
‘‘(2) In the case of a person selected for training in
the National Guard Challenge Program who afterwards
becomes a member of the Civilian Community Corps under
subtitle E of title I of the National and Community Serv-
ice Act of 1990 (42 U.S.C. 12611 et seq.), the person may
not receive a temporary stipend under paragraph (1)(I)
while the person is a member of that Corps. The person
may receive the temporary stipend after completing service
in the Corps unless the person elects to receive benefits
provided under subsection (f) or (g) of section 158 of such
Act (42 U.S.C. 12618).
‘‘(g) PROGRAM PERSONNEL.—(1) Personnel of the
National Guard of a State in which the National Guard
Challenge Program is conducted may serve on full-time
National Guard duty for the purpose of providing com-
mand, administrative, training, or supporting services for
the program. For the performance of those services, any
such personnel may be ordered to duty under section
502(f) of this title for not longer than the period of the
program.
397
‘‘(2) A Governor participating in the National Guard
Challenge Program and the commanding general of the
District of Columbia National Guard (if the District of
Columbia National Guard is participating in the program)
may procure by contract the temporary full time services
of such civilian personnel as may be necessary to augment
National Guard personnel in carrying out the National
Guard Challenge Program in that State.
‘‘(3) Civilian employees of the National Guard per-
forming services for the National Guard Challenge Pro-
gram and contractor personnel performing such services
may be required, when appropriate to achieve the purposes
of the program, to be members of the National Guard and
to wear the military uniform.
‘‘(h) EQUIPMENT AND FACILITIES.—(1) Equipment
and facilities of the National Guard, including military
property of the United States issued to the National
Guard, may be used in carrying out the National Guard
Challenge Program.
‘‘(2) Activities under the National Guard Challenge
Program shall be considered noncombat activities of the
National Guard for purposes of section 710 of this title.
‘‘(i) STATUS OF PARTICIPANTS.—(1) A person receiv-
ing training under the National Guard Challenge Program
398
shall be considered an employee of the United States for
the purposes of the following provisions of law:
‘‘(A) Subchapter I of chapter 81 of title 5 (re-
lating to compensation of Federal employees for
work injuries).
‘‘(B) Section 1346(b) and chapter 171 of title
28 and any other provision of law relating to the li-
ability of the United States for tortious conduct of
employees of the United States.
‘‘(2) In the application of the provisions of law re-
ferred to in paragraph (1)(A) to a person referred to in
paragraph (1)—
‘‘(A) the person shall not be considered to be in
the performance of duty while the person is not at
the assigned location of training or other activity or
duty authorized in accordance with a program agree-
ment referred to in subsection (c), except when the
person is traveling to or from that location or is on
pass from that training or other activity or duty;
‘‘(B) the person’s monthly rate of pay shall be
deemed to be the minimum rate of pay provided for
grade GS–2 of the General Schedule under section
5332 of title 5; and
‘‘(C) the entitlement of a person to receive com-
pensation for a disability shall begin on the day fol-
399
lowing the date on which the person’s participation
in the National Guard Challenge Program is termi-
nated.
‘‘(3) A person referred to in paragraph (1) may not
be considered an employee of the United States for any
purpose other than a purpose set forth in that paragraph.
‘‘(j) SUPPLEMENTAL RESOURCES.—(1) To carry out
the National Guard Challenge Program in a State, the
Governor of the State or, in the case of the District of
Columbia, the commanding general of the District of Co-
lumbia National Guard may supplement funds made avail-
able under the program out of other resources (including
gifts) available to the Governor or the commanding gen-
eral. The Governor or the commanding general may ac-
cept, use, and dispose of gifts or donations of money, other
property, or services for the National Guard Challenge
Program.
‘‘(k) REPORT.—Within 90 days after the end of each
fiscal year, the Secretary of Defense shall submit to Con-
gress a report on the design, conduct, and effectiveness
of the National Guard Challenge Program during the pre-
ceding fiscal year. In preparing the report, the Secretary
shall coordinate with the Governor of each State in which
the National Guard Challenge Program is carried out and,
if the program is carried out in the District of Columbia,
400
with the commanding general of the District of Columbia
National Guard.
‘‘(l) DEFINITIONS.—In this section:
‘‘(1) The term ‘State’ includes the Common-
wealth of Puerto Rico, the territories, and the Dis-
trict of Columbia.
‘‘(2) The term ‘school dropout’ means an indi-
vidual who is no longer attending any school and
who has not received a secondary school diploma or
a certificate from a program of equivalency for such
a diploma.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘509. National Guard Challenge Program of opportunities for civilian youth.’’.
SEC. 1058. LEASE OF NON-EXCESS PERSONAL PROPERTY
OF THE MILITARY DEPARTMENTS.
(a) RECEIPT OF FAIR MARKET VALUE.—Subsection
(b)(4) of section 2667 of title 10, United States Code, is
amended by striking out ‘‘, in the case of the lease of real
property,’’.
(b) COMPETITIVE SELECTION.—Such section is fur-
ther amended—
(1) by redesignating subsection (g) as sub-
section (h); and
401
(2) by inserting after subsection (f) the follow-
ing new subsection:
‘‘(g)(1) If a proposed lease under subsection (a) in-
volves only personal property, the lease term exceeds one
year, and the fair market value of the lease interest ex-
ceeds $100,000, as determined by the Secretary con-
cerned, the Secretary shall use competitive procedures to
select the lessee.
‘‘(2) Not later than 45 days before entering into a
lease referred to in paragraph (1), the Secretary concerned
shall submit to Congress written notice describing the
terms of the proposed lease and the competitive proce-
dures used to select the lessee.’’.
SEC. 1059. COMMENDATION OF MEMBERS OF THE ARMED
FORCES AND GOVERNMENT CIVILIAN PER-
SONNEL WHO SERVED DURING THE COLD
WAR.
(a) FINDINGS.—The Congress finds the following:
(1) During the period of the Cold War, from
the end of World War II until the collapse of the So-
viet Union in 1991, the United States and the Soviet
Union engaged in a global military rivalry.
(2) This rivalry, potentially the most dangerous
military confrontation in the history of mankind, has
402
come to a close without a direct superpower military
conflict.
(3) Military and civilian personnel of the De-
partment of Defense, personnel in the intelligence
community, members of the foreign service, and
other officers and employees of the United States
faithfully performed their duties during the Cold
War.
(4) Many such personnel performed their duties
while isolated from family and friends and served
overseas under frequently arduous conditions in
order to protect the United States and achieve a
lasting peace.
(5) The discipline and dedication of those per-
sonnel were fundamental to the prevention of a su-
perpower military conflict.
(b) CONGRESSIONAL COMMENDATION.—The Con-
gress hereby commends, and expresses its gratitude and
appreciation for, the service and sacrifices of the members
of the Armed Forces and civilian personnel of the Govern-
ment who contributed to the historic victory in the Cold
War.
403
SEC. 1060. PROHIBITION OF PERFORMANCE OF MILITARY
HONORS UPON DEATH OF PERSONS CON-
VICTED OF CAPITAL CRIMES.
(a) MILITARY FUNERALS.—The Secretary of Defense
and the Secretary of Transportation, with respect to the
Coast Guard when it is not operating as a service in the
Navy, may not provide military honors at the funeral of
a person who has been convicted of a crime under State
or Federal law for which death is a possible punishment
and for which the person was sentenced to death or life
imprisonment without parole.
(b) APPLICABILITY OF SECTION.—This section ap-
plies without regard to any other provision of law relating
to funeral or burial benefits.
SEC. 1061. STUDY OF UNITED STATES CAPACITOR AND RE-
SISTOR INDUSTRIES.
The Secretary of Defense shall conduct a study to
assess the capacitor and resistor industries in the United
States in order to determine—
(1) the importance of such industries to the na-
tional defense and the defense mobilization base; and
(2) whether such industries are in danger of
being critically weakened because of the removal of
tariffs on imports under the Information Technology
Agreement.
404
SEC. 1062. SENSE OF THE CONGRESS ON DEPLOYMENT OF
UNITED STATES ARMED FORCES ABROAD
FOR ENVIRONMENTAL PRESERVATION AC-
TIVITIES.
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that United States Armed Forces should not be de-
ployed outside the United States to provide assistance to
another nation in connection with environmental preserva-
tion activities in that nation.
(b) SCOPE OF SECTION.—For purposes of this sec-
tion, environmental preservation activities do not include
activities undertaken for humanitarian purposes, disaster
relief activities, peacekeeping activities, or operational
training activities.
SEC. 1063. STUDY OF TRANSFER OF MODULAR AIRBORNE
FIRE FIGHTING SYSTEM.
Not later than six months after the date of the enact-
ment of this Act, the Secretary of Defense, in consultation
with the Secretary of Agriculture, shall submit to Con-
gress a report evaluating the feasibility of transferring ju-
risdiction over units of the Modular Airborne Fire Fight-
ing System from the Department of Agriculture to the De-
partment of Defense.
405
SEC. 1064. OVERSIGHT OF COUNTER-TERRORISM AND ANTI-
TERRORISM PROGRAMS AND ACTIVITIES OF
THE UNITED STATES.
(a) IN GENERAL.—Not later than 120 days after the
date of the enactment of this Act, the Director of the Of-
fice of Management and Budget shall—
(1) establish a Government-wide reporting sys-
tem with respect to the budget and expenditure of
funds by executive departments and agencies for the
purpose of carrying out counter-terrorism and anti-
terrorism programs and activities; and
(2) collect information on—
(A) the budget and expenditure of funds
by executive departments and agencies during
fiscal years 1995 through 1997 for purposes of
carrying out counter-terrorism and anti-terror-
ism programs and activities; and
(B) the specific programs and activities for
which such funds were expended.
(b) REPORT REQUIREMENT.—Not later than March
1st of each year, the Director of the Office of Management
and Budget shall submit to the President and to Congress
a report, in classified and unclassified form, describing,
for each executive department and agency and for the ex-
ecutive branch as whole—
406
(1) the amounts proposed to be expended di-
rectly for counter-terrorism and anti-terrorism pro-
grams and activities for the fiscal year beginning in
the calendar year in which the report is submitted;
(2) the amounts proposed to be expended di-
rectly for counter-terrorism and anti-terrorism pro-
grams and activities for the fiscal year in which the
report is submitted and the amounts that have al-
ready been expended for such programs and activi-
ties for that fiscal year;
(3) the amounts proposed to be expended di-
rectly and the amounts actually expended directly
for counter-terrorism and anti-terrorism programs
and activities for the three fiscal years preceding the
fiscal year in which the report is submitted; and
(4) the specific counter-terrorism and anti-ter-
rorism programs and activities being implemented,
any priorities with respect to such programs and ac-
tivities, and whether there has been any duplication
of efforts in implementing such programs and activi-
ties.
SEC. 1065. ARMAMENT RETOOLING AND MANUFACTURING
SUPPORT INITIATIVE.
(a) EXPANSION OF PURPOSES OF INITIATIVE.—Sec-
tion 193(b) of the Armament Retooling and Manufactur-
407
ing Support Act of 1992 (subtitle H of title I of Public
Law 102–484; 10 U.S.C. 2501 note) is amended by add-
ing at the end the following new paragraph:
‘‘(10) To allow for the use of ammunition man-
ufacturing facilities by other entities for the purpose
of modernization, development, and restoration of
the facilities.’’.
(b) AUTHORITY TO ENTER INTO AGREEMENTS.—
Section 194(a) of such Act is amended—
(1) by striking out ‘‘and’’ at the end of para-
graph (1);
(2) by striking out the period at the end of
paragraph (2) and inserting in lieu thereof ‘‘; and’’;
and
(3) by adding at the end the following new
paragraph:
‘‘(3) to enter into agreements (which may in-
clude contracts, leases, or other arrangements for a
period of not more than 99 years) with other entities
with respect to the ammunition manufacturing facil-
ity, or a part of such facility.’’.
(c) REPORTING REQUIREMENT.—Not later than Jan-
uary 1, 1998, the Secretary of the Army shall submit to
Congress a report on progress with respect to the imple-
mentation of the amendments made to the Armament Re-
408
tooling and Manufacturing Support Act of 1992 by this
section.
TITLE 
XI—COOPERATIVE
THREAT 
REDUCTION 
WITH
STATES OF FORMER SOVIET
UNION
SEC. 1101. SPECIFICATION OF COOPERATIVE THREAT RE-
DUCTION PROGRAMS.
(a) IN GENERAL.—For purposes of section 301 and
other provisions of this Act, Cooperative Threat Reduction
programs are the programs specified in subsection (b) of
section 406 of title 10, United States Code, as added by
section 1110.
(b) FISCAL YEAR 1998 COOPERATIVE THREAT RE-
DUCTION FUNDS DEFINED.—As used in this title, the
term ‘‘fiscal year 1998 Cooperative Threat Reduction
funds’’ means the funds appropriated pursuant to the au-
thorization of appropriations in section 301 for Coopera-
tive Threat Reduction programs.
SEC. 1102. FISCAL YEAR 1998 FUNDING ALLOCATIONS.
(a) IN GENERAL.—Of the fiscal year 1998 Coopera-
tive Threat Reduction funds, not more than the following
amounts may be obligated for the purposes specified:
(1) For strategic offensive arms elimination in
Russia, $77,900,000.
409
(2) For strategic nuclear arms elimination in
Ukraine, $76,700,000.
(3) For fissile material containers in Russia,
$7,000,000.
(4) For planning and design of a chemical
weapons destruction facility in Russia, $14,400,000.
(5) For planning, design, and construction of a
storage 
facility 
for 
Russian 
fissile 
material,
$57,700,000.
(6) For weapons storage security in Russia,
$23,500,000.
(7) For activities designated as Defense and
Military-to-Military Contacts in Russia, Ukraine,
and Kazakhstan, $7,000,000.
(8) For military-to-military programs of the
United States that focus on countering the threat of
proliferation of weapons of mass destruction and
that include the security forces of the independent
states of the former Soviet Union other than Russia,
Ukraine, Belarus, and Kazakstan, $2,000,000.
(9) For activities designated as Other Assess-
ments/Administrative Support $18,500,000.
(b) LIMITED AUTHORITY TO VARY INDIVIDUAL
AMOUNTS.—(1) If the Secretary of Defense determines
that it is necessary to do so in the national interest, the
410
Secretary may, subject to paragraph (2), obligate amounts
for the purposes stated in any of the paragraphs of sub-
section (a) in excess of the amount specified for those pur-
poses in that paragraph, but not in excess of 115 percent
of that amount. However, the total amount obligated for
the purposes stated in the paragraphs in subsection (a)
may not by reason of the use of the authority provided
in the preceding sentence exceed the sum of the amounts
specified in those paragraphs.
(2) An obligation for the purposes stated in any of
the paragraphs in subsection (a) in excess of the amount
specified in that paragraph may be made using the author-
ity provided in paragraph (1) only after—
(A) the Secretary submits to Congress notifica-
tion of the intent to do so together with a complete
discussion of the justification for doing so; and
(B) 15 days have elapsed following the date of
the notification.
SEC. 1103. PROHIBITION ON USE OF FUNDS FOR SPECIFIED
PURPOSES.
(a) IN GENERAL.—No fiscal year 1998 Cooperative
Threat Reduction funds, and no funds appropriated for
Cooperative Threat Reduction programs for any prior fis-
cal year and remaining available for obligation, may be
obligated or expended for any of the following purposes:
411
(1) Conducting with Russia any peacekeeping
exercise or other peacekeeping-related activity.
(2) Provision of housing.
(3) Provision of assistance to promote environ-
mental restoration.
(4) Provision of assistance to promote job re-
training.
(b) LIMITATION WITH RESPECT TO DEFENSE CON-
VERSION ASSISTANCE.—None of the funds appropriated
pursuant to this Act or any other Act may be obligated
or expended for the provision of assistance to Russia or
any other state of the former Soviet Union to promote de-
fense conversion.
SEC. 1104. PROHIBITION ON USE OF FUNDS UNTIL SPECI-
FIED REPORTS ARE SUBMITTED.
No fiscal year 1998 Cooperative Threat Reduction
funds may be obligated or expended until 15 days after
the date that is the latest of the following:
(1) The date on which the President submits to
Congress the determinations required under sub-
section (c) of section 211 of Public Law 102–228
(22 U.S.C. 2551 note) with respect to any certifi-
cation transmitted to Congress under subsection (b)
of that section during the period beginning on Sep-
412
tember 23, 1996, and ending on the date of the en-
actment of this Act.
(2) The date on which the Secretary of Defense
submits to Congress the annual report required to
be submitted not later than January 31, 1998,
under section 1206(a) of the National Defense Au-
thorization Act for Fiscal Year 1996 (Public Law
104–106; 110 Stat. 471; 22 U.S.C. 5955 note).
(3) The date on which the Secretary of Defense
submits to Congress the report for fiscal year 1997
required under section 1205(c) of the National De-
fense Authorization Act for Fiscal Year 1995 (Pub-
lic Law 103–337; 108 Stat. 2883; 22 U.S.C. 5952
note).
SEC. 1105. LIMITATION ON USE OF FUNDS UNTIL SUBMIS-
SION OF CERTIFICATION.
(a) LIMITATION ON USE OF FUNDS UNTIL SUBMIS-
SION OF CERTIFICATION.—No fiscal year 1998 Coopera-
tive Threat Reduction funds may be obligated or expended
for strategic offensive arms elimination projects in Russia
related to the START II Treaty (as defined in section
1302(d) of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2701))
until 30 days after the date on which the President sub-
mits to Congress a certification in writing that—
413
(1) implementation of the projects would bene-
fit the national security interest of the United
States; and
(2) Russia has agreed to share the cost for the
projects.
(b) REPORT.—Not later than 15 days after the date
that the President submits to Congress the certification
under subsection (a), the Secretary of Defense shall sub-
mit to the congressional defense committees a report de-
scribing the arrangement between the United States and
Russia with respect to the sharing of costs for strategic
offensive arms elimination projects in Russia related to
the START II Treaty.
SEC. 1106. USE OF FUNDS FOR CHEMICAL WEAPONS DE-
STRUCTION FACILITY.
(a) LIMITATION ON USE OF FUNDS UNTIL SUBMIS-
SION OF NOTIFICATIONS TO CONGRESS.—No fiscal year
1998 Cooperative Threat Reduction funds may be obli-
gated or expended for planning and design of a chemical
weapons destruction facility until 15 days after the date
that is the later of the following:
(1) The date on which the Secretary of Defense
submits to Congress notification of an agreement be-
tween the United States and Russia with respect to
414
such chemical weapons destruction facility that in-
cludes—
(A) an agreement providing for a limita-
tion on the financial contribution by the United
States for the facility;
(B) an agreement that the United States
will not pay the costs for infrastructure deter-
mined by Russia to be necessary to support the
facility; and
(C) an agreement on the site of the facil-
ity.
(2) The date on which the Secretary of Defense
submits to Congress notification that the Govern-
ment of Russia has formally approved a plan—
(A) that allows for the destruction of
chemical weapons in Russia; and
(B) that commits Russia to pay a portion
of the cost for the facility.
(b) PROHIBITION ON USE OF FUNDS FOR FACILITY
CONSTRUCTION.—No fiscal year 1998 Cooperative Threat
Reduction funds authorized to be obligated in section
1102(a)(4) for planning and design of a chemical weapons
destruction facility in Russia may be used for construction
of such facility.
415
SEC. 1107. LIMITATION ON USE OF FUNDS FOR STORAGE
FACILITY FOR RUSSIAN FISSILE MATERIAL.
(a) LIMITATION
ON USE
OF FISCAL YEAR 1998
FUNDS.—No fiscal year 1998 Cooperative Threat Reduc-
tion funds may be obligated or expended for planning, de-
sign, or construction of a storage facility for Russian
fissile material until 15 days after the date that is the
later of the following:
(1) The date on which the Secretary of Defense
submits to Congress notification of an agreement be-
tween the United States and Russia that the total
share of the cost to the United States for such facil-
ity will not exceed $275,000,000.
(2) The date on which the Secretary submits to
Congress notification of an agreement between the
United States and Russia incorporating the principle
of transparency with respect to the use of the facil-
ity.
(b) LIMITATION ON USE OF FUNDS FOR FISCAL
YEARS BEFORE FISCAL YEAR 1998.—None of the funds
appropriated for Cooperative Threat Reduction programs
for a fiscal year before fiscal year 1998 and remaining
available for obligation on the date of the enactment of
this Act may be obligated or expended for planning, de-
sign, or construction of a storage facility for Russian
fissile material until—
416
(1) the Secretary of Defense submits to the
congressional defense committees a report on the
costs and schedule for the planning, design, and con-
struction of the facility and transparency issues re-
lating to the facility; and
(2) 15 days have elapsed following the date of
the notification.
SEC. 1108. LIMITATION ON USE OF FUNDS FOR WEAPONS
STORAGE SECURITY.
No fiscal year 1998 Cooperative Threat Reduction
funds may be obligated or expended for weapons storage
security in Russia until—
(1) the Secretary of Defense submits to the
congressional defense committees notification of an
agreement between the United States and Russia on
audits and examinations with respect to weapons
storage security; and
(2) 15 days have elapsed following the date of
the notification.
SEC. 1109. REPORT TO CONGRESS ON ISSUES REGARDING
PAYMENT OF TAXES OR DUTIES ON ASSIST-
ANCE PROVIDED TO RUSSIA UNDER COOPER-
ATIVE THREAT REDUCTION PROGRAMS.
Not later than September 30, 1997, the Secretary of
Defense shall submit to Congress a report on—
417
(1) any disputes between the United States and
Russia with respect to payment by the United States
of taxes or duties on assistance provided to Russia
under a Cooperative Threat Reduction program, in-
cluding a description of the nature of each dispute,
the amount of payment disputed, whether the dis-
pute was resolved, and if the dispute was resolved,
the means by which the dispute was resolved;
(2) the actions taken by the Secretary to pre-
vent disputes between the United States and Russia
with respect to payment by the United States of
taxes or duties on assistance provided to Russia
under a Cooperative Threat Reduction program;
(3) any agreements between the United States
and Russia with respect to payment by the United
States of taxes or duties on assistance provided to
Russia under a Cooperative Threat Reduction pro-
gram; and
(4) any proposals of the Secretary on actions
that should be taken to prevent disputes between the
United States and Russia with respect to payment
by the United States of taxes or duties on assistance
provided to Russia under a Cooperative Threat Re-
duction program.
418
SEC. 1110. LIMITATION ON OBLIGATION OF FUNDS FOR A
SPECIFIED PERIOD.
(a) IN GENERAL.—(1) Chapter 20 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 406. Use of Cooperative Threat Reduction program
funds: limitation
‘‘(a) IN GENERAL.—In carrying out Cooperative
Threat Reduction programs during any fiscal year, the
Secretary of Defense may use funds appropriated for
those programs only to the extent that those funds were
appropriated for that fiscal year or for either of the two
preceding fiscal years.
‘‘(b) DEFINITION OF COOPERATIVE THREAT REDUC-
TION PROGRAMS.—In this section, the term ‘Cooperative
Threat Reduction programs’ means the following pro-
grams with respect to states of the former Soviet Union:
‘‘(1) Programs to facilitate the elimination, and
the safe and secure transportation and storage, of
nuclear, chemical, and other weapons and their de-
livery vehicles.
‘‘(2) Programs to facilitate the safe and secure
storage of fissile materials derived from the elimi-
nation of nuclear weapons.
419
‘‘(3) Programs to prevent the proliferation of
weapons, components, and weapons-related tech-
nology and expertise.
‘‘(4) Programs to expand military-to-military
and defense contacts.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘406. Use of Cooperative Threat Reduction program funds: limitation.’’.
(b) EFFECTIVE DATE.—Section 406 of title 10, Unit-
ed States Code, as added by subsection (a), shall apply
with respect to fiscal years beginning with fiscal year
1998.
SEC. 1111. AVAILABILITY OF FUNDS.
Funds appropriated pursuant to the authorization of
appropriations in section 301 for Cooperative Threat Re-
duction programs shall be available for obligation for three
fiscal years.
TITLE XII—MATTERS RELATING
TO OTHER NATIONS
Subtitle A—General Matters
SEC. 1201. REPORTS TO CONGRESS RELATING TO UNITED
STATES FORCES IN BOSNIA.
(a) SECRETARY OF DEFENSE REPORTS ON NON-
MILITARY TASKS CARRIED OUT
BY UNITED STATES
FORCES.—The Secretary of Defense shall submit to the
420
congressional defense committees two reports identifying
each activity being carried out, as of the date of the report,
by covered United States forces in Bosnia that is an activ-
ity that (as determined by the Secretary) is expected to
be performed by an international or local civilian organiza-
tion once the multinational peacekeeping mission in
Bosnia is concluded.
(b) COVERED UNITED STATES FORCES.—For pur-
poses of this section, covered United States forces in
Bosnia are United States ground forces in the Republic
of Bosnia and Herzegovina that are assigned to the multi-
national peacekeeping force known as the Stabilization
Force (SFOR) or to any other multinational peacekeeping
force that is a successor to the Stabilization Force.
(c) MATTERS TO BE INCLUDED.—The Secretary
shall include in each report under subsection (a), for each
activity identified under that subsection, the following:
(1) The number of United States military per-
sonnel involved.
(2) Whether forces assigned to the SFOR (or
successor multinational force) from other nations
also participated in that activity.
(3) The justification for using military forces
rather than civilian organizations to perform that
activity.
421
(d) SUBMISSION
OF REPORTS.—The first report
under subsection (a) shall be submitted not later than De-
cember 1, 1997. The second such report shall be submit-
ted not later than March 31, 1998.
SEC. 
1202. 
ONE-YEAR 
EXTENSION 
OF
COUNTERPROLIFERATION AUTHORITIES.
Section 1505 of the Weapons of Mass Destruction
Control Act of 1992 (title XV of Public Law 102–484;
22 U.S.C. 5859a) is amended—
(1) in subsection (d)(3), by striking out ‘‘or’’
after ‘‘fiscal year 1996,’’ and by inserting ‘‘, or
$15,000,000 for fiscal year 1998’’ before the period
at the end; and
(2) in subsection (f), by striking out ‘‘1997’’
and inserting in lieu thereof ‘‘1998’’.
SEC. 1203. REPORT ON FUTURE MILITARY CAPABILITIES
AND STRATEGY OF THE PEOPLE’S REPUBLIC
OF CHINA.
(a) REPORT.—The Secretary of Defense shall pre-
pare a report, in both classified and unclassified form, on
the future pattern of military modernization of the Peo-
ple’s Republic of China. The report shall address the prob-
able course of military-technological development in the
People’s Liberation Army and the development of Chinese
grand strategy, security strategy, and military strategy,
422
and of military organizations and operational concepts,
through 2015.
(b) MATTERS TO BE INCLUDED.—The report shall
include analyses and forecasts of the following:
(1) The goals of Chinese grand strategy, secu-
rity strategy, and military strategy.
(2) Trends in Chinese political grand strategy
meant to establish the People’s Republic of China as
the leading political power in the Asia-Pacific region
and as a political and military presence in other re-
gions of the world, including Central Asia, South-
west Asia, Europe, and Latin America.
(3) Developments in Chinese military doctrine,
focusing on (but not limited to) efforts to exploit the
emerging Revolution in Military Affairs or to con-
duct preemptive strikes.
(4) Efforts by the People’s Republic of China to
enhance its capabilities in the area nuclear weapons
development.
(5) Efforts by the People’s Republic of China to
develop long-range air-to-air or air defense missiles
designed to target special support aircraft such as
Airborne Warning and Control System (AWACS)
aircraft, Joint Surveillance and Target Attack Radar
System (JSTARS) aircraft, or other command and