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(2) For the National Defense Sealift Fund,
$1,123,002,000.
SEC. 303. ARMED FORCES RETIREMENT HOME.
There is hereby authorized to be appropriated for fis-
cal year 1997 from the Armed Forces Retirement Home
Trust Fund the sum of $57,300,000 for the operation of
the Armed Forces Retirement Home, including the United
States Soldiers’ and Airmen’s Home and the Naval Home.
SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCK-
PILE TRANSACTION FUND.
(a) TRANSFER AUTHORITY.—To the extent provided
in appropriations Acts, not more than $250,000,000 is au-
thorized to be transferred from the National Defense
Stockpile Transaction Fund to operation and maintenance
accounts for fiscal year 1997 in amounts as follows:
(1) For the Army, $83,334,000.
(2) For the Navy, $83,333,000.
(3) For the Air Force, $83,333,000.
(b) TREATMENT OF TRANSFERS.—Amounts trans-
ferred under this section—
(1) shall be merged with, and be available for
the same purposes and the same period as, the
amounts in the accounts to which transferred; and
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(2) may not be expended for an item that has
been denied authorization of appropriations by Con-
gress.
(c) RELATIONSHIP TO OTHER TRANSFER AUTHOR-
ITY.—The transfer authority provided in this section is in
addition to the transfer authority provided in section
1001.
Subtitle B—Depot-Level Activities
SEC. 311. EXTENSION OF AUTHORITY FOR AVIATION DE-
POTS AND NAVAL SHIPYARDS TO ENGAGE IN
DEFENSE-RELATED PRODUCTION AND SERV-
ICES.
Section 1425(e) of the National Defense Authoriza-
tion Act for Fiscal Year 1991 (Public Law 101–510; 104
Stat. 1684) is amended by striking out ‘‘September 30,
1996’’ and inserting in lieu thereof ‘‘September 30,
1997’’.
SEC. 312. EXCLUSION OF LARGE MAINTENANCE AND RE-
PAIR PROJECTS FROM PERCENTAGE LIMITA-
TION ON CONTRACTING FOR DEPOT-LEVEL
MAINTENANCE.
Section 2466 of title 10, United States Code, is
amended by inserting after subsection (a) the following
new subsection:
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‘‘(b) TREATMENT OF CERTAIN LARGE PROJECTS.—
If a single maintenance or repair project contracted for
performance by non-Federal Government personnel ac-
counts for five percent or more of the funds made available
in a fiscal year to a military department or a Defense
Agency for depot-level maintenance and repair workload,
the project and the funds necessary for the project shall
not be considered when applying the percentage limitation
specified in subsection (a) to that military department or
Defense Agency.’’.
Subtitle C—Environmental
Provisions
SEC. 321. REPEAL OF REPORT ON CONTRACTOR REIM-
BURSEMENT COSTS.
Section 2706 of title 10, United States Code, is
amended—
(1) by striking out subsection (c); and
(2) by redesignating subsection (d) as sub-
section (c).
SEC. 322. PAYMENTS OF STIPULATED PENALTIES AS-
SESSED UNDER CERCLA.
The Secretary of Defense may pay, from funds ap-
propriated pursuant to section 301(14), the following:
(1) Stipulated civil penalties, to the Hazardous
Substance Superfund established under section 9507
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of the Internal Revenue Code of 1986, in amounts
as follows:
(A) Not more than $34,000 assessed
against the United States Army at Fort Riley,
Kansas, under the Comprehensive Environ-
mental Response, Compensation, and Liability
Act of 1980 (42 U.S.C. 9601 et seq.).
(B) Not more than $55,000 assessed
against the Massachusetts Military Reservation,
Massachusetts, under such Act.
(C) Not more than $10,000 assessed
against the F.E. Warren Air Force Base, Wyo-
ming, under such Act.
(D) Not more than $30,000 assessed
against the Naval Education and Training Cen-
ter, Newport, Rhode Island, under such Act.
(E) Not more than $37,500 assessed
against Lake City Army Ammunition Plant,
under such Act.
(2) Not more than $500,000 to carry out two
environmental restoration projects, as part of a ne-
gotiated agreement in lieu of stipulated penalties as-
sessed under the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42
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U.S.C. 9601 et seq.) against the Massachusetts Mili-
tary Reservation, Massachusetts.
SEC. 323. CONSERVATION AND READINESS PROGRAM.
(a) ESTABLISHMENT.—The Secretary of Defense
may establish and carry out a program to be known as
the ‘‘Conservation and Readiness Program’’.
(b) PURPOSE.—The purpose of the Conservation and
Readiness Program is to conduct and manage in a coordi-
nated manner those conservation and cultural activities
that have regional, multicomponent, or Department of De-
fense-wide significance and are necessary to meet legal re-
quirements or to support military operations. These activi-
ties include the following:
(1) The development of ecosystem-wide land
management plans.
(2) The conduct of wildlife studies to ensure the
safety of military operations.
(3) The identification and return of Native
American human remains and cultural items in the
possession or control of the Department of Defense,
or discovered on land under the jurisdiction of the
Department of Defense, to the appropriate Native
American tribes.
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(4) The control of invasive species that may
hinder military activities or degrade military training
ranges.
(5) The establishment of a regional curation
system for artifacts found on military installations.
(c) COOPERATIVE AGREEMENTS AND GRANTS.—The
Secretary of Defense may negotiate and enter into cooper-
ative agreements with, and award grants to, public and
private agencies, organizations, institutions, individuals,
or other entities to carry out the Conservation and Readi-
ness Program.
(d) EFFECT ON OTHER LAWS.—Nothing in this sec-
tion shall be construed or interpreted as preempting any
otherwise applicable Federal, State, or local law or regula-
tion relating to the management of natural and cultural
resources on military installations.
SEC. 324. NAVY COMPLIANCE WITH SHIPBOARD SOLID
WASTE CONTROL REQUIREMENTS.
(a) AMENDMENT TO THE ACT TO PREVENT POLLU-
TION FROM SHIPS.—Subsection (c) of section 3 of the Act
to Prevent Pollution from Ships (33 U.S.C. 1902(c)) is
amended—
(1) in paragraph (1), by inserting ‘‘, except as
provided in paragraphs (4) and (5) of this sub-
section’’ before the period at the end;
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(2) by striking out paragraph (4); and
(3) by adding at the end the following new
paragraphs:
‘‘(4) A vessel owned or operated by the Department
of the Navy for which the Secretary of the Navy deter-
mines under the compliance plan submitted under para-
graph (2) that, due to unique military design, construc-
tion, manning, or operating requirements, full compliance
with paragraph (1) would not be technologically feasible,
would impair the vessel’s operations, and would impair the
vessel’s operational capability, is authorized to discharge
garbage consisting of either of the following:
‘‘(A) A slurry of seawater, paper, cardboard,
and food waste that does not contain more than the
minimum amount practicable of plastic, if such slur-
ry is discharged not less than 3 nautical miles from
the nearest land and is capable of passing through
a screen with openings of no greater than 12 milli-
meters.
‘‘(B) Metal and glass garbage that has been
shredded and bagged to ensure negative buoyancy
and is discharged not less than 12 nautical miles
from the nearest land.
‘‘(5) Not later than December 31, 2000, the Sec-
retary of the Navy shall publish in the Federal Register—
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‘‘(A) a list of those surface ships planned to be
decommissioned between January 1, 2001, and De-
cember 31, 2005; and
‘‘(B) standards to ensure, so far as is reason-
able and practicable, without impairing the oper-
ations or operational capabilities of such ships, that
such ships act in a manner consistent with the spe-
cial area requirements of Regulation 5 of Annex V
to the Convention.’’.
(b) GOAL TO ACHIEVE FULL COMPLIANCE.—It shall
be the goal of the Secretary of the Navy to achieve full
compliance with Annex V to the International Convention
for the Prevention of Pollution from Ships, 1973, as soon
as practicable.
SEC. 325. AUTHORITY TO DEVELOP AND IMPLEMENT LAND
USE PLANS FOR DEFENSE ENVIRONMENTAL
RESTORATION PROGRAM.
(a) AUTHORITY.—The Secretary of Defense may, to
the extent possible and practical, develop and implement,
as part of the Defense Environmental Restoration Pro-
gram provided for in chapter 160 of title 10, United
States Code, a land use plan for any defense site selected
by the Secretary under subsection (b).
(b) SELECTION OF SITES.—The Secretary may select
up to 10 defense sites, from among sites where the Sec-
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retary is planning or implementing environmental restora-
tion activities, for which land use plans may be developed
under this section.
(c) REQUIREMENT TO CONSULT WITH REVIEW COM-
MITTEE OR ADVISORY BOARD.—In developing a land use
plan under this section, the Secretary of Defense shall
consult with a technical review committee established pur-
suant to section 2705(c) of title 10, United States Code,
a restoration advisory board established pursuant to sec-
tion 2705(d) of such title, a local land use redevelopment
authority, or another appropriate State agency.
(d) 50-YEAR PLANNING PERIOD.—A land use plan
developed under this section shall cover a period of at least
50 years.
(e) IMPLEMENTATION.—For each defense site for
which the Secretary develops a land use plan under this
section, the Secretary shall take into account the land use
plan in selecting and implementing, in accordance with ap-
plicable law, environmental restoration activities at the
site.
(f) DEADLINES.—For each defense site for which the
Secretary of Defense intends to develop a land use plan
under this section, the Secretary shall develop a draft land
use plan by October 1, 1997, and a final land use plan
by March 15, 1998.
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(g) DEFINITION OF DEFENSE SITE.—For purposes
of this section, the term ‘‘defense site’’ means (A) any
building, structure, installation, equipment, pipe or pipe-
line (including any pipe into a sewer or publicly owned
treatment works), well, pit, pond, lagoon, impoundment,
ditch, landfill, storage container, motor vehicle, rolling
stock, or aircraft under the jurisdiction of the Department
of Defense, or (B) any site or area under the jurisdiction
of the Department of Defense where a hazardous sub-
stance has been deposited, stored, disposed of, or placed,
or otherwise come to be located; but does not include any
consumer product in consumer use or any vessel.
(h) REPORT.—Not later than December 31, 1998,
the Secretary of Defense shall submit to Congress a report
on the land use plans developed under this section and
the effect such plans have had on environmental restora-
tion activities at the defense sites where they have been
implemented. The report shall include recommendations
on whether such land use plans should be developed and
implemented throughout the Department of Defense.
(h) SAVINGS PROVISIONS.—(1) Nothing in this sec-
tion or in a land use plan developed under this section
with respect to a defense site shall be construed as requir-
ing any modification to a land use plan that was developed
before the date of the enactment of this Act.
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(2) Nothing in this section may be construed to affect
statutory requirements for an environmental restoration
or waste management activity or project or to modify or
otherwise affect applicable statutory or regulatory environ-
mental restoration and waste management requirements,
including substantive standards intended to protect public
health and the environment, nor shall anything in this sec-
tion be construed to preempt or impair any local land use
planning or zoning authority or State authority.
SEC. 326. PILOT PROGRAM TO TEST ALTERNATIVE TECH-
NOLOGIES FOR LIMITING AIR EMISSIONS
DURING SHIPYARD BLASTING AND COATING
OPERATIONS.
(a) PILOT PROGRAM.—The Secretary of the Navy
shall establish a pilot program to test an alternative tech-
nology designed to capture and destroy or remove particu-
late emissions and volatile air pollutants that occur during
abrasive blasting and coating operations at naval ship-
yards. In conducting the test, the Secretary shall seek to
demonstrate whether the technology is valid, cost effective,
and in compliance with environmental laws and regula-
tions.
(b) REPORT.—Upon completion of the test conducted
under the pilot program, the Secretary of the Navy shall
submit to the Committee on Armed Services of the Senate
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and the Committee on National Security of the House of
Representatives a report setting forth in detail the results
of the test. The report shall include recommendations on
whether the alternative technology merits implementation
at naval shipyards and such other recommendations as the
Secretary considers appropriate.
SEC. 327. NAVY PROGRAM TO MONITOR ECOLOGICAL EF-
FECTS OF ORGANOTIN.
(a) MONITORING REQUIREMENT.—The Secretary of
the Navy shall, in consultation with the Administrator of
the Environmental Protection Agency, develop and imple-
ment a program to monitor the concentrations of
organotin in the water column, sediments, and aquatic or-
ganisms of representative estuaries and near-coastal wa-
ters in the United States, as described in section 7(a) of
the Organotin Antifouling Paint Control Act of 1988 (33
U.S.C. 2406(a)). The program shall be designed to
produce high-quality data to enable the Environmental
Protection Agency to develop water quality criteria con-
cerning organotin compounds.
(b) REPORT.—Not later than June 1, 1997, the Sec-
retary of the Navy shall submit to Congress a report con-
taining the following:
(1) A description of the monitoring program de-
veloped pursuant to subsection (a).
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SEC. 328. AGREEMENTS FOR SERVICES OF OTHER AGEN-
CIES 
IN 
SUPPORT 
OF 
ENVIRONMENTAL
TECHNOLOGY DEMONSTRATION AND VALIDA-
TION.
(a) AUTHORITY.—The Secretary of Defense may
enter into a cooperative agreement with an agency of a
State or local government to obtain assistance in dem-
onstrating, validating, and certifying environmental tech-
nologies.
(b) TYPES OF ASSISTANCE.— The types of assistance
that may be obtained under subsection (a) include the fol-
lowing:
(1) Data collection and analysis.
(2) Technical assistance in conducting a dem-
onstration of an environmental technology, including
the implementation of quality assurance and quality
control programs.
(c) SERVICE CHARGES.—The cooperative agreement
may provide for the payment by the Secretary of service
charges to the agency if the charges are reasonable, non-
discriminatory, and do not exceed the actual or estimated
cost to the agency of providing the service.
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Subtitle 
D—Civilian 
Employees
and Nonappropriated Fund In-
strumentality Employees
SEC. 331. REPEAL OF PROHIBITION ON PAYMENT OF LODG-
ING EXPENSES WHEN ADEQUATE GOVERN-
MENT QUARTERS ARE AVAILABLE.
(a) REPEAL.—Section 1589 of title 10, United States
Code, is repealed.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 81 of such title is amended
by striking out the item relating to section 1589.
SEC. 332. VOLUNTARY SEPARATION INCENTIVE PAY MODI-
FICATION.
(a) IN GENERAL.—Section 5597(g) of title 5, United
States Code, is amended by adding at the end the follow-
ing new paragraph:
‘‘(5) If the employment is without compensation, the
appointing official may waive the repayment.’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply with respect to employment accept-
ed on or after the date of the enactment of this Act.
SEC. 333. WAGE-BOARD COMPENSATORY TIME OFF.
(a) IN GENERAL.—Section 5543 of title 5, United
States Code, is amended—
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(1) by redesignating subsection (b) as sub-
section (c); and
(2) by inserting after subsection (a) the follow-
ing new subsection:
‘‘(b) The head of an agency may, on request of an
employee, grant the employee compensatory time off from
his scheduled tour of duty instead of payment under sec-
tion 5544 or section 7 of the Fair Labor Standards Act
of 1938 for an equal amount of time spent in irregular
or occasional overtime work.’’.
(b) CONFORMING AMENDMENT.—Section 5544(c) of
title 5, United States Code, is amended by inserting ‘‘and
the provisions of section 5543(b)’’ before ‘‘shall apply’’.
SEC. 334. SIMPLIFICATION OF RULES RELATING TO THE
OBSERVANCE OF CERTAIN HOLIDAYS.
Section 6103 of title 5, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(d)(1) For purposes of this subsection—
‘‘(A) the term ‘compressed schedule’ has the
meaning given such term by section 6121(5); and
‘‘(B) the term ‘adverse agency impact’ has the
meaning given such term by section 6131(b).
‘‘(2) An agency may prescribe rules under which em-
ployees on a compressed schedule may, in the case of a
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holiday that occurs on a regularly scheduled non-workday
for such employees, and notwithstanding any other provi-
sion of law or the terms of any collective bargaining agree-
ment, be required to observe such holiday on a workday
other than as provided by subsection (b), if the agency
head determines that it is necessary to do so in order to
prevent an adverse agency impact.’’.
SEC. 335. PHASED RETIREMENT.
(a) CIVIL SERVICE RETIREMENT SYSTEM.—Section
8344 of title 5, United States Code, is amended by adding
at the end the following new subsection:
‘‘(m)(1) In order to promote the retention of employ-
ees having knowledge, skills, or expertise needed by the
Department of Defense, in a manner consistent with ongo-
ing downsizing efforts, the Secretary of Defense or his
designee may waive the application of subsection (a), with
respect to reemployed annuitants of the Department of
Defense, under this subsection.
‘‘(2) A waiver under this subsection—
‘‘(A) may not be granted except upon appro-
priate written application submitted and approved
not later than the date of separation on which enti-
tlement to annuity is based;
‘‘(B) shall be contingent on the reemployment
commencing within such time as the Secretary or his
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designee may require, may remain in effect for a pe-
riod of not to exceed 2 years, and shall not be re-
newable; and
‘‘(C) may be granted and thereafter remain in
effect only if, with respect to the position in which
reemployed, the number of regularly scheduled hours
in each week or other period is at least 1⁄2 but not
more than 3⁄4 those last in effect for the individual
before the separation referred to in subparagraph
(A).
‘‘(3)(A) In no event shall the sum of the rate of basic
pay for, plus annuity allocable to, any period of service
as a reemployed annuitant under this subsection exceed
the rate of basic pay that would then be in effect for serv-
ice performed during such period if separation had not oc-
curred.
‘‘(B) If the limitation under subparagraph (A) would
otherwise be exceeded, an amount equal to the excess shall
be deducted from basic pay for the period involved (but
not to exceed total basic pay for such period), and any
amount so deducted shall be deposited in the Treasury of
the United States to the credit of the Fund.
‘‘(4) The number of reemployed annuitants under
this subsection at any given time may not, when taken
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together with the then current number under section
8468(j), exceed a total of 50.
‘‘(5) All waivers under this subsection shall cease to
be effective after September 30, 2001.’’.
(b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—
Section 8468 of title 5, United States Code, is amended
by adding at the end the following new subsection:
‘‘(j)(1) In order to promote the retention of employ-
ees having knowledge, skills, or expertise needed by the
Department of Defense, in a manner consistent with ongo-
ing downsizing efforts, the Secretary of Defense or his
designee may waive the application of subsections (a) and
(b), with respect to reemployed annuitants of the Depart-
ment of Defense, under this subsection.
‘‘(2) A waiver under this subsection—
‘‘(A) may not be granted except upon appro-
priate written application submitted and approved
not later than the date of separation on which enti-
tlement to annuity is based;
‘‘(B) shall be contingent on the reemployment
commencing within such time as the Secretary or his
designee may require, may remain in effect for a pe-
riod of not to exceed 2 years, and shall not be re-
newable; and
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‘‘(C) may be granted and thereafter remain in
effect only if, with respect to the position in which
reemployed, the number of regularly scheduled hours
in each week or other period is at least 1⁄2 but not
more than 3⁄4 those last in effect for the individual
before the separation referred to in subparagraph
(A).
‘‘(3)(A) In no event shall the sum of the rate of basic
pay for, plus annuity allocable to, any period of service
as a reemployed annuitant under this subsection exceed
the rate of basic pay that would then be in effect for serv-
ice performed during such period if separation had not oc-
curred.
‘‘(B) If the limitation under subparagraph (A) would
otherwise be exceeded, an amount equal to the excess shall
be deducted from basic pay for the period involved (but
not to exceed total basic pay for such period), and any
amount so deducted shall be deposited in the Treasury of
the United States to the credit of the Fund.
‘‘(4) The number of reemployed annuitants under
this subsection at any given time may not, when taken
together with the then current number under section
8344(m), exceed a total of 50.
‘‘(5) All waivers under this subsection shall cease to
be effective after September 30, 2001.’’.
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(c) REPORTING REQUIREMENT.—Not later than De-
cember 31, 2000, the Secretary of Defense shall submit
to each House of Congress and the Office of Personnel
Management a written report on the operation of sections
8344(m) and 8468(j) of title 5, United States Code, as
amended by this section. Such report shall include—
(1) recommendations as to whether or not those
provisions of law should be continued beyond Sep-
tember 30, 2001, and, if so, under what conditions
or constraints; and
(2) any other information which the Secretary
of Defense may consider appropriate.
SEC. 336. MODIFICATION OF AUTHORITY FOR CIVILIAN EM-
PLOYEES OF DEPARTMENT OF DEFENSE TO
PARTICIPATE VOLUNTARILY IN REDUCTIONS
IN FORCE.
Section 3502(f) of title 5, United States Code, is
amended to read as follows:
‘‘(f)(1) The Secretary of Defense or the Secretary of
a military department may—
‘‘(A) separate from service any employee who
volunteers to be separated under this subparagraph
even though the employee is not otherwise subject to
separation due to a reduction in force; and
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‘‘(B) for each employee voluntarily separated
under subparagraph (A), retain an employee in a
similar position who would otherwise be separated
due to a reduction in force.
‘‘(2) The separation of an employee under paragraph
(1)(A) shall be treated as an involuntary separation due
to a reduction in force.
‘‘(3) An employee with critical knowledge and skills
(as defined by the Secretary concerned) may not partici-
pate in a voluntary separation under paragraph (1)(A) if
the Secretary concerned determines that such participa-
tion would impair the performance of the mission of the
Department of Defense or the military department con-
cerned.
‘‘(4) The regulations prescribed under this section
shall incorporate the authority provided in this subsection.
‘‘(5) No authority under paragraph (1) may be exer-
cised after September 30, 2001.’’.
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Subtitle E—Commissaries and Non-
appropriated Fund Instrumen-
talities
SEC. 341. CONTRACTS WITH OTHER AGENCIES AND IN-
STRUMENTALITIES FOR GOODS AND SERV-
ICES.
(a) CONTRACTS
TO PROMOTE EFFICIENT OPER-
ATION
AND MANAGEMENT.—Chapter 147 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 2490b. Contracts with other agencies and instru-
mentalities for goods and services
‘‘An agency or instrumentality of the Department of
Defense that supports the operation of the exchange or
morale, welfare, and recreation systems of the Department
of Defense may enter into a contract or other agreement
with another department, agency, or instrumentality of
the Department of Defense or another Federal agency to
provide goods and services beneficial to the efficient man-
agement and operation of the exchange or morale, welfare,
and recreation systems.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘2490b. Contracts with other agencies and instrumentalities for goods and serv-
ices.’’.
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SEC. 342. NONCOMPETITIVE PROCUREMENT OF BRAND-
NAME COMMERCIAL ITEMS FOR RESALE IN
COMMISSARY STORES.
(a) CLARIFICATION OF EXCEPTION TO COMPETITIVE
PROCUREMENT.—Section 2486 of title 10, United States
Code, is amended by adding at the end the following new
subsection:
‘‘(e) The Secretary of Defense may not use the excep-
tion provided in section 2304(c)(5) of this title regarding
the procurement of a brand-name commercial item for re-
sale in commissary stores unless the commercial item is
regularly sold outside of commissary stores under the
same brand name as the name by which the commercial
item will be sold in commissary stores.’’.
(b) EFFECT ON EXISTING CONTRACTS.—The amend-
ment made by subsection (a) shall not affect the terms,
conditions, or duration of any contract entered into by the
Secretary of Defense before the date of the enactment of
this Act for the procurement of commercial items for re-
sale in commissary stores.
SEC. 343. PROHIBITION OF SALE OR RENTAL OF SEXUALLY
EXPLICIT MATERIAL.
(a) IN GENERAL—(1) Chapter 147 of title 10, United
States Code, is amended by adding after section 2490b,
as added by section 341, the following new section:
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‘‘§ 2490c. Sale or rental of sexually explicit material
prohibited
‘‘(a) PROHIBITION OF SALE OR RENTAL.—The Sec-
retary of Defense may not permit the sale or rental of
sexually explicit written or videotaped material on prop-
erty under the jurisdiction of the Department of Defense.
‘‘(b) PROHIBITION OF OFFICIALLY PROVIDED SEXU-
ALLY EXPLICIT MATERIAL.—A member of the armed
forces or a civilian officer or employee of the Department
of Defense acting in an official capacity for sale, remu-
neration, or rental may not provide sexually explicit mate-
rial to another person.
‘‘(c) REGULATIONS.—The Secretary of Defense shall
prescribe regulations to implement this section.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) The term ‘sexually explicit material’ means
an audio recording, a film or video recording, or a
periodical with visual depictions, produced in any
medium, the dominant theme of which depicts or de-
scribes nudity, including sexual or excretory activi-
ties or organs, in a lascivious way.
‘‘(2) The term ‘property under the jurisdiction
of the Department of Defense’ includes com-
missaries, all facilities operated by the Army and Air
Force Exchange Service, the Navy Exchange Service
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Command, the Navy Resale and Services Support
Office, Marine Corps exchanges, and ship stores.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding after the item relating to
section 2490b, as added by section 341, the following new
item:
‘‘2490c. Sale or rental of sexually explicit material prohibited.’’.
(b) EFFECTIVE DATE.—Subsection (a) of section
2490c of title 10, United States Code, as added by sub-
section (a) of this section, shall take effect 90 days after
the date of the enactment of this Act.
Subtitle F—Performance of Func-
tions by Private-Sector Sources
SEC. 351. EXTENSION OF REQUIREMENT FOR COMPETITIVE
PROCUREMENT OF PRINTING AND DUPLICA-
TION SERVICES.
(a) EXTENSION.—Section 351(a) of the National De-
fense Authorization Act for Fiscal Year 1996 (Public Law
104–106; 110 Stat. 266) is amended by striking out ‘‘fis-
cal year 1996’’ and inserting in lieu thereof ‘‘fiscal years
1996 and 1997’’.
(b) REPORTING REQUIREMENTS.—Such section is
further amended by adding at the end the following new
subsection:
‘‘(c) REPORTING REQUIREMENTS.—(1) Not later
than 90 days after the end of each fiscal year in which
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the requirement of subsection (a) applies, the Secretary
of Defense shall submit to Congress a report—
‘‘(A) describing the extent of the compliance of
the Secretary with the requirement during that fiscal
year;
‘‘(B) specifying the total volume of printing and
duplication services procured by Department of De-
fense during that fiscal year—
‘‘(i) from sources within the Department of
Defense;
‘‘(ii) from private-sector sources; and
‘‘(iii) from other sources in the Federal
Government; and
‘‘(C) specifying the total volume of printed and
duplicated material during that fiscal year covered
by the exception in subsection (b).
‘‘(2) The report required for fiscal year 1996 shall
also include the plans of the Secretary for further imple-
mentation of the requirement of subsection (a) during fis-
cal year 1997.’’.
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SEC. 352. REQUIREMENT REGARDING USE OF PRIVATE
SHIPYARDS FOR COMPLEX NAVAL SHIP RE-
PAIR CONTRACTS.
(a) IN GENERAL.—(1) Chapter 633 of title 10, Unit-
ed States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 7315. Use of private shipyards for complex ship re-
pair work: limitation to certain shipyards
‘‘(a) LIMITATION ON REPAIR LOCATIONS.—When-
ever a naval vessel (other than a submarine) is to undergo
complex ship repairs and the Secretary of the Navy deter-
mines that a private shipyard contractor is to be used for
the work required, such work—
‘‘(1) may be performed only by a qualifying
shipyard contractor; and
‘‘(2) shall be performed at the shipyard facility
of the contractor selected unless the Secretary deter-
mines that the work should be conducted elsewhere
in the interest of national security.
‘‘(b) QUALIFYING SHIPYARD CONTRACTOR.—For the
purposes of this section, a qualifying shipyard contractor,
with respect to the award of any contract for ship repair
work, is a private shipyard that—
‘‘(1) is capable of performing the repair and
overhaul of ships with a displacement of 800 tons or
more;
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‘‘(2) performs at least 55 percent of repairs
with its own facilities and work force;
‘‘(3) possesses or has access to a dry-dock and
a pier with the capability to berth a ship with a dis-
placement of 800 tons or more; and
‘‘(4) has all the facilities and organizational ele-
ments needed for the repair of a ship with a dis-
placement of 800 tons or more.
‘‘(c) COMPLEX SHIP REPAIRS.—In this section, the
term ‘complex ship repairs’ means repairs to a vessel per-
formed at a shipyard that are estimated (before work on
the repairs by a shipyard begins) to require expenditure
of $750,000 or more.
‘‘(d) EXCEPTION REGARDING PACIFIC COAST.—This
section shall not apply in the case of complex ship repairs
to be performed at a shipyard facility located on the Pa-
cific Coast of the United States.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘7315. Use of private shipyards for complex ship repair work: limitation to cer-
tain shipyards.’’.
(b) EFFECTIVE DATE.—Section 7315 of title 10,
United States Code, as added by subsection (a), shall
apply with respect to contracts for complex ship repairs
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that are awarded after the date of the enactment of this
Act.
Subtitle G—Other Matters
SEC. 360. TERMINATION OF DEFENSE BUSINESS OPER-
ATIONS FUND AND PREPARATION OF PLAN
REGARDING 
IMPROVED 
OPERATION 
OF
WORKING-CAPITAL FUNDS.
(a) REPEAL OF DEFENSE BUSINESS OPERATIONS
FUND.—(1) Section 2216 of title 10, United States Code,
as added by section 371(a) of the National Defense Au-
thorization Act for Fiscal Year 1996 (Public Law 104–
106; 110 Stat. 277), is repealed.
(2) The table of sections at the beginning of chapter
131 of title 10, United States Code, is amended by strik-
ing out the item relating to such section.
(3) The amendments made by this subsection shall
take effect on October 1, 1998.
(b) PLAN FOR IMPROVED OPERATION OF WORKING-
CAPITAL FUNDS.—Not later than September 30, 1997,
the Secretary of Defense shall submit to Congress a plan
to improve the management and performance of the indus-
trial, commercial, and support type activities of the mili-
tary departments or the Defense Agencies that are cur-
rently managed through the Defense Business Operations
Fund.
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(c) ELEMENTS OF PLAN.—The plan required by sub-
section (b) shall address the following issues:
(1) The ability of each military department to
set working capital requirements and set charges at
its own industrial and supply activities.
(2) The desirability of separate business ac-
counts for the management of both industrial and
supply activities for each military department.
(3) Liability for operating losses at industrial
and supply activities.
(4) Reimbursement to the Department of De-
fense for each military department’s fair share of
the costs of legitimate common business support
services provided by the Department of Defense
(such as accounting and financial services and
central logistics services).
(5) The role of the Department of Defense in
setting charges or imposing surcharges for activities
managed by the military department business ac-
counts (except for the common business support
costs described in paragraph (4)), and what such
charges should properly reflect.
(6) The appropriate use of operating profits
arising from the operations of the industrial and
supply activities of a military department.
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(7) The ability of military departments to pur-
chase industrial and supply services from, and pro-
vide such services to, other military departments.
(8) Standardization of financial management
and accounting practices employed by military de-
partment business accounts.
(9) Reporting requirements related to actual
and projected performance of military department
business management account activities.
SEC. 361. INCREASE IN CAPITAL ASSET THRESHOLD UNDER
DEFENSE BUSINESS OPERATIONS FUND.
Section 2216 of title 10, United States Code, as
added by section 371(a) of the National Defense Author-
ization Act for Fiscal Year 1996 (Public Law 104–106;
110 Stat. 227), is amended in subsection (i)(1) by striking
out ‘‘$50,000’’ and inserting in lieu thereof ‘‘$100,000’’.
SEC. 362. TRANSFER OF EXCESS PERSONAL PROPERTY TO
SUPPORT LAW ENFORCEMENT ACTIVITIES.
(a) TRANSFER AUTHORITY.—(1) Chapter 153 of title
10, United States Code, is amended by inserting after sec-
tion 2576 the following new section:
‘‘§ 2576a. Excess personal property: sale or donation
for law enforcement activities
‘‘(a) TRANSFER AUTHORIZED.—(1) Notwithstanding
any other provision of law and subject to subsection (b),
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the Secretary of Defense may transfer to Federal and
State agencies personal property of the Department of De-
fense, including small arms and ammunition, that the Sec-
retary determines is—
‘‘(A) suitable for use by the agencies in law en-
forcement activities, including counter-drug activi-
ties; and
‘‘(B) excess to the needs of the Department of
Defense.
‘‘(2) The Secretary shall carry out this section in con-
sultation with the Attorney General and the Director of
National Drug Control Policy.
‘‘(b) CONDITIONS FOR TRANSFER.—The Secretary
may transfer personal property under this section only
if—
‘‘(1) the property is drawn from existing stocks
of the Department of Defense; and
‘‘(2) the transfer is made without the expendi-
ture of any funds available to the Department of
Defense for the procurement of defense equipment.
‘‘(c) CONSIDERATION.—Personal property may be
transferred under this section without cost to the recipient
agency.
‘‘(d) PREFERENCE FOR CERTAIN TRANSFERS.—In
considering applications for the transfer of personal prop-
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erty under this section, the Secretary shall give a pref-
erence to those applications indicating that the transferred
property will be used in the counter-drug activities of the
recipient agency.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 2576 the following new item:
‘‘2576a. Excess personal property: sale or donation for law enforcement activi-
ties.’’.
(b) CONFORMING AMENDMENTS.—(1) Section 1208
of the National Defense Authorization Act for Fiscal
Years 1990 and 1991 (Public Law 101–189; 10 U.S.C.
372 note) is repealed.
(2) Section 1005 of the National Defense Authoriza-
tion Act for Fiscal Year 1991 (Public Law 101–510; 104
Stat. 1630) is amended by striking out ‘‘section 1208 of
the National Defense Authorization Act for Fiscal Years
1990 and 1991 (10 U.S.C. 372 note) and section 372’’
and inserting in lieu thereof ‘‘sections 372 and 2576a’’.
SEC. 363. STORAGE OF MOTOR VEHICLE IN LIEU OF TRANS-
PORTATION.
(a) STORAGE AUTHORIZED.—(1) Section 2634 of
title 10, United States Code, is amended by adding at the
end the following new subsection:
‘‘(g)(1) In lieu of transportation authorized by this
section, if a member is ordered to make a change of per-
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manent station to a foreign country and the laws, regula-
tions, or other restrictions imposed by the foreign country
or the United States preclude entry of a motor vehicle de-
scribed in subsection (a) into that country, or would re-
quire extensive modification of the vehicle as a condition
to entry, the member may elect to have the vehicle stored
at the expense of the United States at a location approved
by the Secretary concerned.
‘‘(2) If a member is transferred or assigned to duty
at a location other than the permanent station of the
member for a period of more than 30 consecutive days,
but the transfer or assignment is not considered a change
of permanent station, the member may elect to have a
motor vehicle described in subsection (a) stored at the ex-
pense of the United States at a location approved by the
Secretary concerned.
‘‘(3) Authorized expenses under this subsection in-
clude costs associated with the delivery of the motor vehi-
cle for storage and removal of the vehicle for delivery to
a destination approved by the Secretary concerned.’’.
(2)(A) The heading of such section is amended to
read as follows:
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‘‘§ 2634. Motor vehicles: transportation or storage for
members on change of permanent station
or extended deployment’’.
(B) The item relating to such section in the table of
sections at the beginning of chapter 157 of title 10, United
States Code, is amended to read as follows:
‘‘2634. Motor vehicles: transportation or storage for members on change of per-
manent station or extended deployment.’’.
(b) CONFORMING AMENDMENT.—Section 406(h)(1)
of title 37, United States Code, is amended by striking
out subparagraph (B) and inserting in lieu thereof the fol-
lowing new subparagraph:
‘‘(B) in the case of a member described in para-
graph (2)(A), authorize the transportation of one
motor vehicle, which is owned or leased by the mem-
ber (or a dependent of the member) and is for the
personal use of a dependent of the member, to that
location by means of transportation authorized
under section 2634 of title 10 or authorize the stor-
age of the motor vehicle pursuant to subsection (g)
of such section.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on July 1, 1997.
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SEC. 364. CONTROL OF TRANSPORTATION SYSTEMS IN
TIME OF WAR.
(a) RESPONSIBILITY OF SECRETARY OF DEFENSE.—
Chapter 157 of title 10, United States Code is amended
by adding at the end the following new section:
‘‘§ 2644. Control of transportation systems in time of
war
‘‘In time of war, the President, acting through the
Secretary of Defense, may take possession and assume
control of all or any part of a system of transportation
to transport troops, war material, and equipment, or for
other purposes related to the emergency. So far as nec-
essary, the Secretary may use the transportation system
to the exclusion of other traffic.’’.
(b) CONFORMING REPEALS.—Sections 4742 and
9742 of title 10, United States Code are repealed.
(c) CLERICAL AMENDMENTS.—(1) The table of sec-
tions at the beginning of chapter 447 of such title is
amended by striking out the item relating to section 4742.
(2) The table of sections at the beginning of chapter
947 of such title is amended by striking out the item relat-
ing to section 9742.
(3) The table of sections at the beginning of chapter
157 of such title 10 is amended by inserting after the item
relating to section 2643 the following new item:
‘‘2644. Control of transportation systems in time of war.’’.
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SEC. 365. SECURITY PROTECTIONS AT DEPARTMENT OF DE-
FENSE FACILITIES IN NATIONAL CAPITAL RE-
GION.
(a) EXPANSION OF AUTHORITY.—Subsection (b) of
section 2674 of title 10, United States Code, is amended
by striking out ‘‘at the Pentagon Reservation’’ and insert-
ing in lieu thereof ‘‘in the National Capital Region’’.
(b) CLERICAL AMENDMENT.—(1) The heading of
such section is amended to read as follows:
‘‘§ 2674. Operation and control of Pentagon Reserva-
tion and defense facilities in National
Capital Region’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 159 of such title is
amended to read as follows:
‘‘2674. Operation and control of Pentagon Reservation and defense facilities in
National Capital Region.’’.
SEC. 366. MODIFICATIONS TO ARMED FORCES RETIRE-
MENT HOME ACT OF 1991.
(a) TERM OF OFFICE.—Section 1515 of the Armed
Forces Retirement Home Act of 1991 (24 U.S.C. 415)
is amended—
(1) in subsection (e), by adding at the end the
following:
‘‘(3) The chairman of the Retirement Home Board
may appoint a member of the Retirement Home Board
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for a second consecutive term. The chairman of a Local
Board may appoint a member of that Local Board for a
second consecutive term.’’; and
(2) by striking out subsection (f) and inserting
in lieu thereof the following:
‘‘(f) EARLY EXPIRATION OF TERM.—A member of
the Armed Forces or Federal civilian employee who is ap-
pointed as a member of the Retirement Home Board or
a Local Board may serve as a board member only so long
as the member of the Armed Forces or Federal civilian
employee is assigned to or serving in the duty position that
gave rise to the appointment as a board member.’’.
(b) 
DISPOSAL
OF
REAL
PROPERTY.—Section
1516(d) of such Act (24 U.S.C. 416(d)) is amended by
striking out ‘‘(d)’’ and all that follows through the end
of paragraph (1) and inserting in lieu thereof the follow-
ing:
‘‘(d) DISPOSAL OF REAL PROPERTY.—(1) The Re-
tirement Home Board may dispose of real property of the
Retirement Home by sale or otherwise, except that the dis-
posal may not occur until after the end of a period of 30
legislative days or 60 calendar days, whichever is longer,
beginning on the date on which the Retirement Home
Board notifies the Committee on Armed Services of the
Senate and the Committee on National Security of the
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House of Representatives of the proposed disposal. The
Federal Property and Administrative Services Act of 1949
(40 U.S.C. 471 et seq.), section 501 of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11411),
and any other provision of law or regulation relating to
the handling or disposal of real property by the United
States shall not apply to the disposal of real property by
the Retirement Home Board.’’.
(c) ANNUAL EVALUATION OF DIRECTORS.—Section
1517 of such Act (24 U.S.C. 417) is amended by striking
out subsection (f) and inserting in lieu thereof the follow-
ing:
‘‘(f) ANNUAL EVALUATION
OF DIRECTORS.—The
chairman of the Retirement Home Board shall annually
evaluate the performance of the Directors and shall make
such recommendations to the Secretary of Defense as the
chairman considers appropriate in light of the evalua-
tion.’’.
(d) EFFECT
OF
AMENDMENT.—The amendment
made by subsection (a)(2) shall not affect the staggered
terms of members of the Armed Forces Retirement Home
Board or a Local Board of the Retirement Home under
section 1515(f) of such Act, as in effect before the date
of the enactment of this Act.