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‘‘(4) with respect to each person covered by the
inquiry, recommend to the Secretary who appointed
the board that—
‘‘(A) the person be placed in a missing sta-
tus; or
‘‘(B) the person be declared to have deserted,
to be absent without leave, or to be dead.
‘‘(e) BOARD PROCEEDINGS.—During the proceedings
of an inquiry under this section, a board shall—
‘‘(1) collect, record, and safeguard all facts, docu-
ments, statements, photographs, tapes, messages,
maps, sketches, reports, and other information (wheth-
er classified or unclassified) relating to the where-
abouts or status of each person covered by the in-
quiry;
‘‘(2) gather information relating to actions taken
to find the person, including any evidence of the
whereabouts or status of the person arising from such
actions; and
‘‘(3) maintain a record of its proceedings.
‘‘(f) ACCESS TO PROCEEDINGS.—The proceedings of a
board during an inquiry under this section shall be closed
to the public (including, with respect to the person covered
by the inquiry, the primary next of kin, other members of
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the immediate family, and any other previously designated
person of the person).
‘‘(g) RECOMMENDATION ON STATUS OF MISSING PER-
SONS.—(1) Upon completion of its inquiry, a board ap-
pointed under this section shall make a recommendation to
the Secretary who appointed the board as to the appropriate
determination of the current whereabouts or status of each
person whose whereabouts and status were covered by the
inquiry.
‘‘(2)(A) A board may not recommend under paragraph
(1) that a person be declared dead unless the board deter-
mines that the evidence before it established conclusive proof
of the death of the person.
‘‘(B) In this paragraph, the term ‘conclusive proof of
death’ means credible evidence establishing that death is the
only credible explanation for the absence of the person.
‘‘(h) REPORT.—(1) A board appointed under this sec-
tion shall submit to the Secretary who appointed the board
a report on the inquiry carried out by the board. The report
shall include—
‘‘(A) a discussion of the facts and evidence con-
sidered by the board in the inquiry;
‘‘(B) the recommendation of the board under sub-
section (g) with respect to each person covered by the
report; and
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‘‘(C) disclosure of whether classified documents
and information were reviewed by the board or were
otherwise used by the board in forming recommenda-
tions under subparagraph (B).
‘‘(2) A board shall submit a report under this sub-
section with respect to the inquiry carried out by the board
not later than 30 days after the date of the appointment
of the board to carry out the inquiry.
‘‘(3) A report submitted under this subsection with re-
spect to a missing person may not be made public until
one year after the date on which the report is submitted,
and not without the approval of the primary next of kin
of the person.
‘‘(i) DETERMINATION BY SECRETARY.—(1) Not later
than 30 days after the receipt of a report from a board
under subsection (j), the Secretary receiving the report shall
review the report.
‘‘(2) In reviewing a report under paragraph (1) the
Secretary shall determine whether or not the report is com-
plete and free of administrative error. If the Secretary de-
termines that the report is incomplete, or that the report
is not free of administrative error, the Secretary may return
the report to the board for further action on the report by
the board.
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‘‘(3) Upon a determination by the Secretary that a
report reviewed under this subsection is complete and free
of administrative error, the Secretary shall make a deter-
mination concerning the status of each person covered by
the report, including whether the person shall—
‘‘(A) be declared missing;
‘‘(B) be declared to have deserted;
‘‘(C) be declared to be absent without leave; or
‘‘(D) be declared to be dead.
‘‘(j) REPORT TO FAMILY MEMBERS AND OTHER IN-
TERESTED PERSONS.—Not later than 30 days after the date
on which the Secretary concerned makes a determination
of the status of a person under subsection (a)(2) or (i), the
Secretary shall take reasonable actions to—
‘‘(1) provide to the primary next of kin, the other
members of the immediate family, and any other pre-
viously designated person of the person—
‘‘(A) an unclassified summary of the unit
commander’s report with respect to the person
under section 1502(a) of this title; and
‘‘(B) if a board was appointed to carry out
an inquiry into the person under this section,
the report of the board (including the names of
the members of the board) under subsection (h);
and
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‘‘(2) inform each individual referred to in para-
graph (1) that the United States will conduct a subse-
quent inquiry into the whereabouts or status of the
person on or about one year after the date of the first
official notice of the disappearance of the person, un-
less information becomes available sooner that may
result in a change in status of the person.
‘‘(k) TREATMENT
OF DETERMINATION.—Any deter-
mination of the status of a missing person under subsection
(a)(2) or (i) shall be treated as the determination of the
status of the person by all departments and agencies of the
United States.
‘‘§ 1504. Subsequent board of inquiry
‘‘(a) ADDITIONAL BOARD.—If information that may
result in a change of status of a person covered by a deter-
mination under subsection (a)(2) or (i) of section 1503 of
this title becomes available within one year after the date
of the transmission of a report with respect to the person
under section 1502(a)(2) of this title, the Secretary con-
cerned shall appoint a board under this section to conduct
an inquiry into the information.
‘‘(b) DATE
OF APPOINTMENT.—The Secretary con-
cerned shall appoint a board under this section to conduct
an inquiry into the whereabouts and status of a missing
person on or about one year after the date of the trans-
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mission of a report concerning the person under section
1502(a)(2) of this title.
‘‘(c) COMBINED INQUIRIES.—If it appears to the Sec-
retary concerned that the absence or status of two or more
persons is factually related, the Secretary may appoint one
board under this section to conduct the inquiry into the
whereabouts or status of such persons.
‘‘(d) COMPOSITION.—(1) Subject to paragraphs (2)
and (3), a board appointed under this section shall consist
of not less than three officers having the grade of major or
lieutenant commander or above.
‘‘(2) The Secretary concerned shall designate one mem-
ber of a board appointed under this section as president
of the board. The president of the board shall have a security
clearance that affords the president access to all information
relating to the whereabouts and status of each person cov-
ered by the inquiry.
‘‘(3) One member of each board appointed under this
subsection shall be an individual who—
‘‘(A) has a occupational specialty similar to that
of one or more of the persons covered by the inquiry;
and
‘‘(B) has an understanding of and expertise in
the type of official activities that one or more such
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persons were engaged in at the time such person or
persons disappeared.
‘‘(4) The Secretary who appoints a board under this
subsection shall, for purposes of providing legal counsel to
the board, assign to the board a judge advocate, or appoint
to the board an attorney, who has expertise in the law relat-
ing to missing persons, the determination of death of such
persons, and the rights of family members and dependents
of such persons.
‘‘(e) DUTIES OF BOARD.—A board appointed under
this section to conduct an inquiry into the whereabouts or
status of a person shall—
‘‘(1) review the report with respect to the person
transmitted under section 1502(a)(2) of this title, and
the report, if any, submitted under subsection (h) of
section 1503 of this title by the board appointed to
conduct inquiry into the status of the person under
such section 1503;
‘‘(2) collect and evaluate any document, fact, or
other evidence with respect to the whereabouts or sta-
tus of the person that has become available since the
determination of the status of the person under sec-
tion 1503 of this title;
‘‘(3) draw conclusions as to the whereabouts or
status of the person;
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‘‘(4) determine on the basis of the activities
under paragraphs (1) and (2) whether the status of
the person should be continued or changed; and
‘‘(5) submit to the Secretary concerned a report
describing the findings and conclusions of the board,
together with a recommendation for a determination
by the Secretary concerning the whereabouts or status
of the person.
‘‘(f) ATTENDANCE OF FAMILY MEMBERS AND CERTAIN
OTHER INTERESTED PERSONS
AT PROCEEDINGS.—(1)
With respect to any person covered by a inquiry under this
section, the primary next of kin, other members of the im-
mediate family, and any other previously designated person
of the person may attend the proceedings of the board dur-
ing the inquiry.
‘‘(2) The Secretary concerned shall take reasonable ac-
tions to notify each individual referred to in paragraph (1)
of the opportunity to attend the proceedings of a board.
Such notice shall be provided not less than 60 days before
the first meeting of the board.
‘‘(3) An individual who receives notice under para-
graph (2) shall notify the Secretary of the intent, if any,
of that individual to attend the proceedings of the board
not later than 21 days after the date on which the individ-
ual receives the notice.
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‘‘(4) Each individual who notifies the Secretary under
paragraph (3) of the individual’s intent to attend the pro-
ceedings of the board—
‘‘(A) in the case of a individual who is the pri-
mary next of kin or other member of the immediate
family of a missing person whose status is a subject
of the inquiry and whose receipt of the pay or allow-
ances (including allotments) of the person could be re-
duced or terminated as a result of a revision in the
status of the person, may attend the proceedings of the
board with private counsel;
‘‘(B) shall have access to the personnel file of the
missing person, to unclassified reports, if any, of the
board appointed under section 1503 of this title to
conduct the inquiry into the whereabouts and status
of the person, and to any other unclassified informa-
tion or documents relating to the whereabouts and
status of the person;
‘‘(C) shall be afforded the opportunity to present
information at the proceedings of the board that such
individual considers to be relevant to those proceed-
ings; and
‘‘(D) subject to paragraph (5), shall be given the
opportunity to submit in writing an objection to any
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recommendation of the board under subsection (h) as
to the status of the missing person.
‘‘(5)(A) Individuals who wish to file objections under
paragraph (4)(D) to any recommendation of the board
shall—
‘‘(i) submit a letter of intent to the president of
the board not later than 2 days after the date on
which the recommendations are made; and
‘‘(ii) submit to the president of the board the ob-
jections in writing not later than 15 days after the
date on which the recommendations are made.
‘‘(B) The president of a board shall include any objec-
tions to a recommendation of the board that are submitted
to the president of the board under subparagraph (A) in
the report of the board containing the recommendation
under subsection (h).
‘‘(6) An individual referred to in paragraph (1) who
attends the proceedings of a board under this subsection
shall not be entitled to reimbursement by the United States
for any costs (including travel, lodging, meals, local trans-
portation, legal fees, transcription costs, witness expenses,
and other expenses) incurred by that individual in attend-
ing such proceedings.
‘‘(g) AVAILABILITY OF INFORMATION TO BOARDS.—(1)
In conducting proceedings in an inquiry under this section,
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a board may secure directly from any department or agency
of the United States any information that the board consid-
ers necessary in order to conduct the proceedings.
‘‘(2) Upon written request from the president of a
board, the head of a department or agency of the United
States shall release information covered by the request to
the board. In releasing such information, the head of the
department or agency shall—
‘‘(A) declassify to an appropriate degree classi-
fied information; or
‘‘(B) release the information in a manner not re-
quiring the removal of markings indicating the classi-
fied nature of the information.
‘‘(3)(A) If a request for information under paragraph
(2) covers classified information that cannot be declassified,
cannot be removed before release from the information cov-
ered by the request, or cannot be summarized in a manner
that prevents the release of classified information, the classi-
fied information shall be made available only to the presi-
dent of the board making the request.
‘‘(B) The president of a board shall close to persons
who do not have appropriate security clearances the pro-
ceeding of the board at which classified information is dis-
cussed. Participants at a proceeding of a board at which
classified information is discussed shall comply with all ap-
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plicable laws and regulations relating to the disclosure of
classified information. The Secretary concerned shall assist
the president of a board in ensuring that classified informa-
tion is not compromised through board proceedings.
‘‘(h) RECOMMENDATION ON STATUS.—(1) Upon com-
pletion of an inquiry under this subsection, a board shall
make a recommendation as to the current whereabouts or
status of each missing person covered by the inquiry.
‘‘(2) A board may not recommend under paragraph
(1) that a person be declared dead unless—
‘‘(A) proof of death is established by the board;
or
‘‘(B) in making the recommendation, the board
complies with section 1507 of this title.
‘‘(i) REPORT.—A board appointed under this section
shall submit to the Secretary concerned a report on the in-
quiry carried out by the board, together with the evidence
considered by the board during the inquiry. The report may
include a classified annex.
‘‘(j) ACTIONS BY SECRETARY CONCERNED.—(1) Not
later than 30 days after the receipt of a report from a board
under subsection (i), the Secretary shall review—
‘‘(A) the report; and
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‘‘(B) the objections, if any, to the report submit-
ted to the president of the board under subsection
(f)(5).
‘‘(2) In reviewing a report under paragraph (1) (in-
cluding the objections described in subparagraph (B) of that
paragraph), the Secretary concerned shall determine wheth-
er or not the report is complete and free of administrative
error. If the Secretary determines that the report is incom-
plete, or that the report is not free of administrative error,
the Secretary may return the report to the board for further
action on the report by the board.
‘‘(3) Upon a determination by the Secretary that a
report reviewed under this subsection is complete and free
of administrative error, the Secretary shall make a deter-
mination concerning the status of each person covered by
the report.
‘‘(k) REPORT TO FAMILY MEMBERS AND OTHER IN-
TERESTED PERSONS.—Not later than 60 days after the date
on which the Secretary concerned makes a determination
with respect to a missing person under subsection (j), the
Secretary shall—
‘‘(1) provide an unclassified summary of the re-
port reviewed by the Secretary in making the deter-
mination to the primary next of kin, the other mem-
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bers of the immediate family, and any other pre-
viously designated person of the person; and
‘‘(2) in the case of a person who continues to be
in a missing status, inform each individual referred
to in paragraph (1) that the United States will con-
duct subsequent inquiries into the whereabouts or sta-
tus of the person upon obtaining credible information
that may result in a change in the status of the per-
son.
‘‘(l) TREATMENT
OF DETERMINATION.—Any deter-
mination of the status of a missing person under subsection
(j) shall supersede the determination of the status of the per-
son under section 1503 of this title and shall be treated as
the determination of the status of the person by all depart-
ments and agencies of the United States.
‘‘§ 1505. Further review
‘‘(a) SUBSEQUENT REVIEW.—(1) The Secretary con-
cerned shall conduct subsequent inquiries into the where-
abouts or status of any person determined by the Secretary
under section 1504 of this title to be in a missing status.
‘‘(2) The Secretary concerned shall appoint a board
to conduct an inquiry with respect to a person under this
subsection upon obtaining credible information that may
result in a change of status of the person.
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‘‘(b) CONDUCT OF PROCEEDINGS.—The appointment
of, and activities before, a board appointed under this sec-
tion shall be governed by the provisions of section 1504 of
this title with respect to a board appointed under that sec-
tion.
‘‘§ 1506. Personnel files
‘‘(a) INFORMATION IN FILES.—Except as provided in
subsections (b), (c), and (d), the Secretary of the department
having jurisdiction over a missing person at the time of
the person’s disappearance shall, to the maximum extent
practicable, ensure that the personnel file of the person con-
tains all information in the possession of the United States
relating to the disappearance and whereabouts or status of
the person.
‘‘(b) CLASSIFIED INFORMATION.—(1) The Secretary
concerned may withhold classified information from a per-
sonnel file under this section.
‘‘(2) If the Secretary concerned withholds classified in-
formation from a personnel file, the Secretary shall ensure
that the file contains the following:
‘‘(A) A notice that the withheld information ex-
ists.
‘‘(B) A notice of the date of the most recent re-
view of the classification of the withheld information.
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‘‘(c) PROTECTION OF PRIVACY.—The Secretary con-
cerned shall maintain personnel files under this section,
and shall permit disclosure of or access to such files, in ac-
cordance with the provisions of section 552a of title 5 and
with other applicable laws and regulations pertaining to
the privacy of the persons covered by the files.
‘‘(d) PRIVILEGED INFORMATION.—The Secretary con-
cerned shall withhold reports obtained as privileged infor-
mation from the personnel files under this section. If the
Secretary withholds a report from a personnel file under
this subsection, the Secretary shall ensure that the file con-
tains a notice that the withheld information exists.
‘‘(e) WRONGFUL WITHHOLDING.—Except as otherwise
provided by law, any person who knowingly and willfully
withholds from the personnel file of a missing person any
information relating to the disappearance or whereabouts
or status of a missing person shall be fined as provided in
title 18 or imprisoned not more than one year, or both.
‘‘(f) AVAILABILITY OF INFORMATION.—The Secretary
concerned shall, upon request, make available the contents
of the personnel file of a missing person to the primary
next of kin, the other members of the immediate family, or
any other previously designated person of the person.
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‘‘§ 1507. Recommendation of status of death
‘‘(a) REQUIREMENTS RELATING
TO RECOMMENDA-
TION.—A board appointed under section 1504 or 1505 of
this title may not recommend that a person be declared
dead unless—
‘‘(1) credible evidence exists to suggest that the
person is dead;
‘‘(2) the United States possesses no credible evi-
dence that suggests that the person is alive;
‘‘(3) representatives of the United States have
made a complete search of the area where the person
was last seen (unless, after making a good faith effort
to obtain access to such area, such representatives are
not granted such access); and
‘‘(4) representatives of the United States have ex-
amined the records of the government or entity having
control over the area where the person was last seen
(unless, after making a good faith effort to obtain ac-
cess to such records, such representatives are not
granted such access).
‘‘(b) SUBMITTAL OF INFORMATION ON DEATH.—If a
board appointed under section 1504 or 1505 of this title
makes a recommendation that a missing person be declared
dead, the board shall, to the maximum extent practicable,
include in the report of the board with respect to the person
under such section the following:
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‘‘(1) A detailed description of the location where
the death occurred.
‘‘(2) A statement of the date on which the death
occurred.
‘‘(3) A description of the location of the body, if
recovered.
‘‘(4) If the body has been recovered and is not
identifiable through visual means, a certification by
a practitioner of an appropriate forensic science that
the body recovered is that of the missing person.
‘‘§ 1508. Return alive of person declared missing or
dead
‘‘(a) PAY AND ALLOWANCES.—Any person (except for
a person subsequently determined to have been absent with-
out leave or a deserter) in a missing status or declared dead
under the Missing Persons Act of 1942 (56 Stat. 143) or
chapter 10 of title 37 or by a board appointed under this
chapter who is found alive and returned to the control of
the United States shall be paid for the full time of the ab-
sence of the person while given that status or declared dead
under the law and regulations relating to the pay and al-
lowances of persons returning from a missing status.
‘‘(b) EFFECT ON GRATUITIES PAID AS A RESULT OF
STATUS.—Subsection (a) shall not be interpreted to invali-
date or otherwise affect the receipt by any person of a death
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gratuity or other payment from the United States on behalf
of a person referred to in subsection (a) before the date of
the enactment of this chapter.
‘‘§ 1509. Effect on State law
‘‘Nothing in this chapter shall be construed to invali-
date or limit the power of any State court or administrative
entity, or the power of any court or administrative entity
of any political subdivision thereof, to find or declare a per-
son dead for purposes of such State or political subdivision.
‘‘§ 1510. Definitions
‘‘In this chapter:
‘‘(1) The term ‘missing person’ means a member
of the armed forces on active duty who is in a miss-
ing status.
‘‘(2) The term ‘missing status’ means the status
of a missing person who is determined to be absent
in a category of—
‘‘(A) missing;
‘‘(B) missing in action;
‘‘(C) interned in a foreign country;
‘‘(D) captured;
‘‘(E) beleaguered;
‘‘(F) besieged; or
‘‘(G) detained.
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‘‘(3) The term ‘accounted for’, with respect to a
person in a missing status, means that—
‘‘(A) the person is returned to United States
control alive;
‘‘(B) the remains of the person are identi-
fied by competent authority; or
‘‘(C) credible evidence exists to support an-
other determination of the person’s status.
‘‘(4) The term ‘primary next of kin’, in the case
of a missing person, means the individual authorized
to direct disposition of the remains of the person
under section 1482(c) of this title.
‘‘(5) The term ‘member of the immediate family’,
in the case of a missing person, means the following:
‘‘(A) The spouse of the person.
‘‘(B) A natural child, adopted child, step
child, or illegitimate child (if acknowledged by
the person or parenthood has been established by
a court of competent jurisdiction) of the person,
except that if such child has not attained the age
of 18 years, the term means a surviving parent
or legal guardian of such child.
‘‘(C) A biological parent of the person, un-
less legal custody of the person by the parent has
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been previously terminated by reason of a court
decree or otherwise under law and not restored.
‘‘(D) A brother or sister of the person, if
such brother or sister has attained the age of 18
years.
‘‘(E) Any other blood relative or adoptive
relative of the person, if such relative was given
sole legal custody of the person by a court decree
or otherwise under law before the person attained
the age of 18 years and such custody was not
subsequently terminated before that time.
‘‘(6) The term ‘previously designated person’, in
the case of a missing person, means an individual
designated by the person under section 655 of this
title for purposes of this chapter.
‘‘(7) The term ‘classified information’ means any
information determined as such under applicable
laws and regulations of the United States.
‘‘(8) The term ‘State’ includes the District of Co-
lumbia, the Commonwealth of Puerto Rico, and any
territory or possession of the United States.
‘‘(9) The term ‘Secretary concerned’ includes the
Secretary of Transportation with respect to the Coast
Guard when it is not operating as a service in the
Department of the Navy.
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‘‘(10) The term ‘armed forces’ includes Coast
Guard personnel operating in conjunction with, in
support of, or under the command of a unified com-
batant command (as that term is used in section 6
of this title).’’.
(2) The tables of chapters at the beginning of subtitle
A, and at the beginning of part II of subtitle A, of title
10, United States Code, are amended by inserting after the
item relating to chapter 75 the following new item:
‘‘76. Missing Persons .......................................................................................
1501’’.
(c) CONFORMING AMENDMENTS.—Chapter 10 of title
37, United States Code, is amended as follows:
(1) Section 555 is amended—
(A) in subsection (a), by striking out ‘‘when
a member’’ and inserting in lieu thereof ‘‘except
as provided in subsection (d), when a member’’;
and
(B) by adding at the end the following new
subsection:
‘‘(d) This section does not apply in a case to which
section 1502 of title 10 applies.’’.
(2) Section 552 is amended—
(A) in subsection (a), by striking out ‘‘for
all purposes,’’ in the second sentence of the mat-
ter following paragraph (2) and all that follows
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through the end of the sentence and inserting in
lieu thereof ‘‘for all purposes.’’;
(B) in subsection (b), by inserting ‘‘or
under chapter 76 of title 10’’ before the period at
the end; and
(C) in subsection (e), by inserting ‘‘or under
chapter 76 of title 10’’ after ‘‘section 555 of this
title’’ after ‘‘section 555 of this title’’.
(3) Section 553 is amended—
(A) in subsection (f), by striking out ‘‘the
date the Secretary concerned receives evidence
that’’ and inserting in lieu thereof ‘‘the date on
which, in a case covered by section 555 of this
title, the Secretary concerned receives evidence,
or, in a case covered by chapter 76 of title 10,
the Secretary concerned determines pursuant to
that chapter that’’; and
(B) in subsection (g), by inserting ‘‘or
under chapter 76 of title 10’’ after section 555 of
this title’’.
(4) Section 556 is amended—
(A) in subsection (a), by inserting after
paragraph (7) the following: ‘‘Paragraphs (1),
(5), (6), and (7) shall only apply with respect to
a case to which section 555 of this title applies.’’;
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(B) in subsection (b), by inserting ‘‘, in a
case to which section 555 of this title applies,’’
after ‘‘When the Secretary concerned’’; and
(C) In subsection (h)—
(i) in the first sentence, by striking out
‘‘status’’ and inserting in lieu thereof
‘‘pay’’; and
(ii) in the second sentence, by inserting
‘‘in a case to which section 555 of this title
applies’’ after ‘‘under this section’’.
(d) DESIGNATION OF INDIVIDUALS HAVING INTEREST
IN STATUS OF SERVICE MEMBERS.—(1) Chapter 37 of title
10, United States Code, is amended by adding at the end
the following new section:
‘‘§ 655. Designation of persons having interest in sta-
tus of a missing member
‘‘(a) The Secretary concerned shall, upon the enlist-
ment or appointment of a person in the armed forces, re-
quire that the person specify in writing the person or per-
sons, if any, other than that person’s primary next of kin
or immediate family, to whom information on the where-
abouts or status of the member shall be provided if such
whereabouts or status are investigated under chapter 76 of
this title. The Secretary shall periodically, and whenever
the member is deployed as part of a contingency operation
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or in other circumstances specified by the Secretary, require
that such designation be reconfirmed, or modified, by the
member.
‘‘(b) The Secretary concerned shall, upon the request
of a member, permit the member to revise the person or
persons specified by the member under subsection (a) at any
time. Any such revision shall be in writing.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item:
‘‘655. Designation of persons having interest in status of a missing member.’’.
(e) ACCOUNTING FOR CIVILIAN EMPLOYEE AND CON-
TRACTORS OF THE UNITED STATES.—(1) The Secretary of
State shall carry out a comprehensive study of the Missing
Persons Act of 1942 (56 Stat. 143), and any other laws
and regulations establishing procedures for the accounting
for of civilian employees of the United States or contractors
of the United States who serve with or accompany the
Armed Forces in the field. The purpose of the study is to
determine the means, if any, by which such procedures may
be improved.
(2) The Secretary of State shall carry out the study
required under paragraph (1) in consultation with the Sec-
retary of Defense, the Secretary of Transportation, the Di-
rector of Central Intelligence, and the heads of such other
departments and agencies of the Federal Government as the
President shall designate for that purpose.
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(3) In carrying out the study, the Secretary of State
shall examine the procedures undertaken when a civilian
employee referred to in paragraph (1) becomes involuntar-
ily absent as a result of a hostile action, or under cir-
cumstances suggesting that the involuntary absence is a re-
sult of a hostile action, and whose status is undetermined
or who is unaccounted for, including procedures for—
(A) search and rescue for the employee;
(B) determining the status of the employee;
(C) reviewing and changing the status of the em-
ployee;
(D) determining the rights and benefits accorded
to the family of the employee; and
(E) maintaining and providing appropriate ac-
cess to the records of the employee and the investiga-
tion into the status of the employee.
(4) Not later than one year after the date of the enact-
ment of this Act, the Secretary of State shall submit to the
Committee on Armed Services of the Senate and the Com-
mittee on National Security of the House of Representatives
a report on the study carried out by the Secretary under
this subsection. The report shall include the recommenda-
tions, if any, of the Secretary for legislation to improve the
procedures covered by the study.
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SEC. 552. SERVICE NOT CREDITABLE FOR PERIODS OF UN-
AVAILABILITY OR INCAPACITY DUE TO MIS-
CONDUCT.
(a) ENLISTED SERVICE CREDIT.—Section 972 of title
10, United States Code, is amended—
(1) by striking out paragraphs (3) and (4) and
inserting in lieu thereof the following:
‘‘(3) is confined by military or civilian authori-
ties for more than one day in connection with a trial,
whether before, during, or after the trial; or’’; and
(2) by redesignating paragraph (5) paragraph
(4).
(b) OFFICER SERVICE CREDIT.—Chapter 49 of title
10, United States Code, is amended by inserting after sec-
tion 972 the following new section:
‘‘§ 972a. Officers: service not creditable
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), an officer of an armed force may not receive credit for
service in the armed forces for any purpose for a period
for which the officer—
‘‘(1) deserts;
‘‘(2) is absent from the officer’s organization,
station, or duty for more than one day without prop-
er authority, as determined by competent authority;
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‘‘(3) is confined by military or civilian authori-
ties for more than one day in connection with a trial,
whether before, during, or after the trial; or
‘‘(4) is unable for more than one day, as deter-
mined by competent authority, to perform the officer’s
duties because of intemperate use of drugs or alcoholic
liquor, or because of disease or injury resulting from
the officer’s misconduct.
‘‘(b) INAPPLICABILITY
TO COMPUTATION
OF BASIC
PAY.—Subsection (a) does not apply to a determination of
the amount of basic pay of the officer under section 205
of title 37.’’.
(c) ARMY COMPUTATION OF YEARS OF SERVICE.—Sec-
tion 3926 of title 10, United States Code, is amended by
adding at the end the following new subsection:
‘‘(e) A period for which service credit is denied under
section 972a(a) of this title may not be counted for purposes
of computing years of service under this section.’’.
(d) NAVY COMPUTATION OF YEARS OF SERVICE.—
Chapter 571 of title 10, United States Code, is amended
by inserting after section 6327 the following new section:
‘‘§ 6328. Computation of years of service: service not
creditable
‘‘(a) ENLISTED MEMBERS.—Years of service computed
under this chapter may not include a period of unavail-
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ability or incapacity to perform duties that is required
under section 972 of this title to be made up by performance
of service for an additional period.
‘‘(b) OFFICERS.—A period for which service credit is
denied under section 972a(a) of this title may not be count-
ed for purposes of computing years of service under this
chapter.’’.
(e) AIR FORCE COMPUTATION OF YEARS OF SERV-
ICE.—Section 8926 of title 10, United States Code, is
amended by adding at the end the following new subsection:
‘‘(d) A period for which service credit is denied under
section 972a(a) of this title may not be counted for purposes
of computing years of service under this section.’’.
(f) CLERICAL AMENDMENTS.—(1) The table of sections
at the beginning of chapter 49 of title 10, United States
Code, is amended by inserting after the item relating to
section 972 the following:
‘‘972a. Officers: service not creditable.’’.
(2) The table of sections at the beginning of chapter
571 of title 10, United States Code, is amended by inserting
after the item relating to section 6327 the following new
item:
‘‘6328. Computation of years of service: service not creditable.’’.
(g) EFFECTIVE
DATE
AND
APPLICABILITY.—The
amendments made by this section shall take effect on Octo-
ber 1, 1995, and shall apply to occurrences on or after that
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‘‘§ 12687. Persons under confinement for one year or
more
‘‘Except as otherwise provided in regulations pre-
scribed by the Secretary of Defense, a Reserve sentenced by
a court-martial to a period of confinement for one year or
more may be separated from the person’s armed force at
any time after the sentence to confinement has become final
under chapter 47 of this title and the person has served
in confinement for a period of one year.’’.
(B) The table of sections at the beginning of chapter
1221 of such title is amended by inserting at the end thereof
the following new item:
‘‘12687. Persons under confinement for one year or more.’’.
(b) DROP FROM ROLLS.—(1) Section 1161(b) of title
10, United States Code, is amended by striking out ‘‘or (2)’’
and inserting in lieu thereof ‘‘(2) who may be separated
under section 1178 of this title by reason of a sentence to
confinement adjudged by a court-martial, or (3)’’.
(2) Section 12684 of such title is amended—
(A) by striking out ‘‘or’’ at the end of paragraph
(1);
(B) by redesignating paragraph (2) as para-
graph (3); and
(C) by inserting after paragraph (1) the follow-
ing new paragraph (2):
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‘‘(2) who may be separated under section 12687
of this title by reason of a sentence to confinement ad-
judged by a court-martial; or’’.
SEC. 554. DURATION OF FIELD TRAINING OR PRACTICE
CRUISE REQUIRED UNDER THE SENIOR RE-
SERVE OFFICERS’ TRAINING CORPS PRO-
GRAM.
Section 2104(b)(6)(A)(ii) of title 10, United States
Code, is amended by striking out ‘‘not less than six weeks’
duration’’ and inserting in lieu thereof ‘‘a duration’’.
SEC. 555. CORRECTION OF MILITARY RECORDS.
(a) REVIEW OF PROCEDURES.—The Secretary of each
military department shall review the system and procedures
used by the Secretary in the exercise of authority under sec-
tion 1552 of title 10, United States Code, in order to iden-
tify potential improvements that could be made in the proc-
ess for correcting military records to ensure fairness, equity,
and, consistent with appropriate service to applicants,
maximum efficiency.
(b) ISSUES REVIEWED.—In conducting the review, the
Secretary shall consider the following issues:
(1) The composition of the board for correction
of military records and of the support staff for the
board.
(2) Timeliness of final action.
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(3) Independence of deliberations by the civilian
board for the correction of military records.
(4) The authority of the Secretary to modify the
recommendations of the board.
(5) Burden of proof and other evidentiary stand-
ards.
(6) Alternative methods for correcting military
records.
(c) REPORT.—(1) Not later than April 1, 1996, the
Secretary of each military department shall submit a report
on the results of the Secretary’s review under this section
to the Secretary of Defense. The report shall contain the
recommendations of the Secretary of the military depart-
ment for improving the process for correcting military
records in order to achieve the objectives referred to in sub-
section (a).
(2) The Secretary of Defense shall immediately trans-
mit a copy of the report to the Committee on Armed Serv-
ices of the Senate and the Committee on National Security
of the House of Representatives.
SEC. 556. LIMITATION ON REDUCTIONS IN MEDICAL PER-
SONNEL.
(a) LIMITATION ON REDUCTIONS.—Unless the Sec-
retary of Defense makes the certification described in sub-
section (b) for a fiscal year, the Secretary may not reduce
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the number of medical personnel of the Department of De-
fense—
(1) in fiscal year 1996, to a number that is less
than—
(A) 95 percent of the number of such per-
sonnel at the end of fiscal year 1994; or
(B) 90 percent of the number of such per-
sonnel at the end of fiscal year 1993; and
(2) in any fiscal year beginning after September
30, 1996, to a number that is less than—
(A) 95 percent of the number of such per-
sonnel at the end of the immediately preceding
fiscal year; or
(B) 90 percent of the number of such per-
sonnel at the end of the third fiscal year preced-
ing the fiscal year.
(b) CERTIFICATION.—The Secretary may make a re-
duction described in subsection (a) if the Secretary certifies
to Congress that—
(1) the number of medical personnel of the De-
partment that is being reduced is excess to the current
and projected needs of the military departments; and
(2) such reduction will not result in an increase
in the cost of health care services provided under the
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Civilian Health and Medical Program of the Uni-
formed Services.
(c) REPORT ON PLANNED REDUCTIONS.—Not later
than March 1, 1996, the Assistant Secretary of Defense hav-
ing responsibility for health affairs, in consultation with
Surgeon General of the Army, the Surgeon General of the
Navy, and the Surgeon General of the Air Force, shall sub-
mit to the congressional defense committees a plan for the
reduction of the number of medical personnel of the Depart-
ment of Defense over the 5-year period beginning on October
1, 1996.
(d) REPEAL OF OBSOLETE PROVISIONS OF LAW.—(1)
Section 711 of the National Defense Authorization Act for
Fiscal Year 1991 (10 U.S.C. 115 note) is repealed.
(2) Section 718 of the National Defense Authorization
Act for Fiscal Years 1992 and 1993 (Public Law 102–190;
105 Stat. 1404; 10 U.S.C. 115 note) is amended by striking
out subsection (b).
(3) Section 518 of the National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102–484; 106 Stat.
2407) is repealed.
(e) DEFINITION.—For purposes of this section, the
term ‘‘medical personnel’’ has the meaning given such term
in section 115a(g)(2) of title 10, United States Code, except
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that such term includes civilian personnel of the Depart-
ment of Defense assigned to military medical facilities.
SEC. 557. REPEAL OF REQUIREMENT FOR ATHLETIC DIREC-
TOR 
AND 
NONAPPROPRIATED 
FUND 
AC-
COUNT FOR THE ATHLETICS PROGRAMS AT
THE SERVICE ACADEMIES.
(a) UNITED STATES MILITARY ACADEMY.—(1) Section
4357 of title 10, United States Code, is repealed.
(2) The table of sections at the beginning of chapter
403 of such title is amended by striking out the item relat-
ing to section 4357.
(b) UNITED STATES NAVAL ACADEMY.—Section 556 of
the National Defense Authorization Act for Fiscal Year
1995 (Public Law 103–337; 108 Stat. 2774) is amended
by striking out subsections (b), (d), and (e).
(c) UNITED STATES AIR FORCE ACADEMY.—(1) Sec-
tion 9356 of title 10, United States Code, is repealed.
(2) The table of sections at the beginning of chapter
903 of such title is amended by striking out the item relat-
ing to section 9356.
SEC. 558. PROHIBITION ON USE OF FUNDS FOR SERVICE
ACADEMY PREPARATORY SCHOOL TEST PRO-
GRAM.
Notwithstanding any other provision of law, none of
the funds authorized to be appropriated by this Act, or oth-
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erwise made available, to the Department of Defense may
be obligated to carry out a test program for determining
the cost effectiveness of transferring to the private sector the
mission of operating one or more preparatory schools for
the United States Military Academy, the United States
Naval Academy, and the United States Air Force Academy.
SEC. 559. CENTRALIZED JUDICIAL REVIEW OF DEPART-
MENT OF DEFENSE PERSONNEL ACTIONS.
(a) ESTABLISHMENT.—The Secretary of Defense and
the Attorney General shall jointly establish an advisory
panel on centralized review of Department of Defense ad-
ministrative personnel actions.
(b) MEMBERSHIP.—(1) The panel shall be composed
of five members appointed as follows:
(A) One member appointed by the Chief Justice
of the United States.
(B) Three members appointed by the Secretary of
Defense.
(C) One member appointed by the Attorney Gen-
eral.
(2) The Secretary of Defense shall designate one of the
members appointed under paragraph (1)(B) to serve as
chairman of the panel.
(3) All members shall be appointed not later than 30
days after the date of the enactment of this Act.
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(4) The panel shall meet at the call of the chairman.
The panel shall hold its first meeting not later than 30 days
after the date on which all members have been appointed.
(c) DUTIES.—The panel shall review, and provide
findings and recommendations in accordance with sub-
section (d) regarding, the following matters:
(1) Whether the existing practices with regard to
judicial review of administrative personnel actions of
the Department of Defense are appropriate and ade-
quate.
(2) Whether a centralized judicial review of ad-
ministrative personnel actions should be established.
(3) Whether the United States Court of Appeals
for the Armed Forces should conduct such reviews.
(d) REPORT.—(1) Not later than December 15, 1996,
the panel shall submit a report on the findings and rec-
ommendations of the panel to the Secretary of Defense and
the Attorney General.
(2) Not later than January 1, 1997, the Secretary of
Defense and the Attorney General shall jointly transmit the
panel’s report to Congress. The Secretary and the Attorney
General may include in the transmittal any joint com-
ments on the report that they consider appropriate, and ei-
ther such official may include in the transmittal any sepa-
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rate comments on the report that such official considers ap-
propriate.
(e) TERMINATION OF PANEL.—The panel shall termi-
nate 30 days after the date of submission of the report to
the Secretary of Defense and the Attorney General under
subsection (d).
SEC. 560. DELAY IN REORGANIZATION OF ARMY ROTC RE-
GIONAL HEADQUARTERS STRUCTURE.
(a) DELAY.—The Secretary of the Army may not take
any action to reorganize the regional headquarters and
basic camp structure of the Reserve Officers Training Corps
program of the Army until six months after the date on
which the report required by subsection (d) is submitted.
(b) COST-BENEFIT ANALYSIS.—The Secretary of the
Army shall conduct a comparative cost-benefit analysis of
various options for the reorganization of the regional head-
quarters and basic camp structure of the Army ROTC pro-
gram. As part of such analysis, the Secretary shall measure
each reorganization option considered against a common
set of criteria.
(c) SELECTION OF REORGANIZATION OPTION FOR IM-
PLEMENTATION.—Based on the findings resulting from the
cost-benefit analysis under subsection (b) and such other
factors as the Secretary considers appropriate, the Sec-
retary shall select one reorganization option for implemen-
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tation. The Secretary may select an option for implementa-
tion only if the Secretary finds that the cost-benefit analysis
and other factors considered clearly demonstrate that such
option, better than any other option considered—
(1) provides the structure to meet projected mis-
sion requirements;
(2) achieves the most significant personnel and
cost savings;
(3) uses existing basic and advanced camp facili-
ties to the maximum extent possible;
(4) minimizes additional military construction
costs; and
(5) makes maximum use of the reserve compo-
nents to support basic and advanced camp oper-
ations, thereby minimizing the effect of those oper-
ations on active duty units.
(d) REPORT.—Not later than 60 days after the date
of the enactment of this Act, the Secretary of the Army shall
submit to the Committee on Armed Services of the Senate
and the Committee on National Security of the House of
Representatives a report describing the reorganization op-
tion selected under subsection (c). The report shall include
the results of the cost-benefit analysis under subsection (b)
and a detailed rationale for the reorganization option se-
lected.
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TITLE VI—COMPENSATION AND
OTHER PERSONNEL BENEFITS
Subtitle A—Pay and Allowances
SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1996.
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—Any
adjustment required by section 1009 of title 37, United
States Code, in elements of compensation of members of the
uniformed services to become effective during fiscal year
1996 shall not be made.
(b) INCREASE IN BASIC PAY AND BAS.—Effective on
January 1, 1996, the rates of basic pay and basic allowance
for subsistence of members of the uniformed services are in-
creased by 2.4 percent.
(c) INCREASE IN BAQ.—Effective on January 1, 1996,
the rates of basic allowance for quarters of members of the
uniformed services are increased by 5.2 percent.
SEC. 602. ELECTION OF BASIC ALLOWANCE FOR QUARTERS
INSTEAD OF ASSIGNMENT TO INADEQUATE
QUARTERS.
(a) ELECTION AUTHORIZED.—Section 403(b) of title
37, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’;
(2) by designating the second sentence as para-
graph (2) and, as so designated, by striking out
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‘‘However, subject’’ and inserting in lieu thereof
‘‘Subject’’; and
(3) by adding at the end the following:
‘‘(3) A member without dependents who is in pay
grade E–6 and who is assigned to quarters of the United
States that do not meet the minimum adequacy standards
established by the Department of Defense for members in
such pay grade, or to a housing facility under the jurisdic-
tion of a uniformed service that does not meet such stand-
ards, may elect not to occupy such quarters or facility and
instead to receive the basic allowance for quarters prescribed
for his pay grade by this section.’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall take effect on July 1, 1996.
SEC. 603. PAYMENT OF BASIC ALLOWANCE FOR QUARTERS
TO MEMBERS OF THE UNIFORMED SERVICES
IN PAY GRADE E–6 WHO ARE ASSIGNED TO
SEA DUTY.
(a) PAYMENT AUTHORIZED.—Section 403(c)(2) of title
37, United States Code, is amended—
(1) in the first sentence, by striking out ‘‘E–7’’
and inserting in lieu thereof ‘‘E–6’’; and
(2) in the second sentence, by striking out ‘‘E–
6’’ and inserting in lieu thereof ‘‘E–5’’.
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(b) EFFECTIVE DATE.—The amendments made by this
section shall take effect on July 1, 1996.
SEC. 604. LIMITATION ON REDUCTION OF VARIABLE HOUS-
ING ALLOWANCE FOR CERTAIN MEMBERS.
(a) LIMITATION ON REDUCTION IN VHA.—Subsection
(c)(3) of section 403a of title 37, United States Code, is
amended by adding at the end the following new sentence:
‘‘However, on and after January 1, 1996, the monthly
amount of a variable housing allowance under this section
for a member of a uniformed service with respect to an area
may not be reduced so long as the member retains uninter-
rupted eligibility to receive a variable housing allowance
within that area and the member’s certified housing costs
are not reduced, as indicated by certifications provided by
the member under subsection (b)(4).’’.
(b) EFFECT
ON TOTAL AMOUNT AVAILABLE
FOR
VHA.—Subsection (d)(3) of such section is amended by in-
serting after the first sentence the following new sentence:
‘‘In addition, the total amount determined under para-
graph (1) shall be adjusted to ensure that sufficient amounts
are available to allow payment of any additional amounts
of variable housing allowance necessary as a result of the
requirements of the second sentence of subsection (c)(3).’’.
(c) REPORT ON IMPLEMENTATION.—Not later than
June 1, 1996, the Secretary of Defense shall submit to Con-
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gress a report describing the procedures to be used to imple-
ment the amendments made by this section and the costs
of such amendments.
SEC. 605. CLARIFICATION OF LIMITATION ON ELIGIBILITY
FOR FAMILY SEPARATION ALLOWANCE.
Section 427(b)(4) of title 37, United States Code, is
amended by inserting ‘‘paragraph (1)(A) of’’ after ‘‘not en-
titled to an allowance under’’ in the first sentence.
Subtitle B—Bonuses and Special
and Incentive Pays
SEC. 611. EXTENSION OF CERTAIN BONUSES FOR RESERVE
FORCES.
(a) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(f) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1996’’ and inserting in lieu
thereof ‘‘September 30, 1997’’.
(b) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1996’’ and inserting in lieu
thereof ‘‘September 30, 1997’’.
(c) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1996’’ and inserting in lieu
thereof ‘‘September 30, 1997’’.
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(d) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS.—Section 308h(g) of title 37, United States
Code, is amended by striking out ‘‘September 30, 1996’’ and
inserting in lieu thereof ‘‘September 30, 1997’’.
(e) PRIOR SERVICE ENLISTMENT BONUS.—Section
308i(i) of title 37, United States Code, is amended by strik-
ing out ‘‘September 30, 1996’’ and inserting in lieu thereof
‘‘September 30, 1997’’.
SEC. 612. EXTENSION OF CERTAIN BONUSES AND SPECIAL
PAY FOR NURSE OFFICER CANDIDATES, REG-
ISTERED 
NURSES, 
AND 
NURSE 
ANES-
THETISTS.
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States Code,
is amended by striking out ‘‘September 30, 1996’’ and in-
serting in lieu thereof ‘‘September 30, 1997’’.
(b) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is
amended by striking out ‘‘September 30, 1996’’ and insert-
ing in lieu thereof ‘‘September 30, 1997’’.
(c) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of title 37, United States
Code, is amended by striking out ‘‘September 30, 1996’’ and
inserting in lieu thereof ‘‘September 30, 1997’’.
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SEC. 613. EXTENSION OF AUTHORITY RELATING TO PAY-
MENT OF OTHER BONUSES AND SPECIAL
PAYS.
(a) AVIATION OFFICER RETENTION BONUS.—Section
301b(a) of title 37, United States Code, is amended by strik-
ing out ‘‘September 30, 1996,’’ and inserting in lieu thereof
‘‘September 30, 1997’’.
(b) REENLISTMENT BONUS FOR ACTIVE MEMBERS.—
Section 308(g) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1996’’ and inserting in lieu
thereof ‘‘September 30, 1997’’.
(c) ENLISTMENT BONUSES FOR CRITICAL SKILLS.—
Sections 308a(c) and 308f(c) of title 37, United States Code,
are each amended by striking out ‘‘September 30, 1996’’
and inserting in lieu thereof ‘‘September 30, 1997’’.
(d) SPECIAL PAY FOR ENLISTED MEMBERS OF THE
SELECTED RESERVE ASSIGNED TO CERTAIN HIGH PRIOR-
ITY UNITS.—Section 308d(c) of title 37, United States
Code, is amended by striking out ‘‘September 30, 1996’’ and
inserting in lieu thereof ‘‘September 30, 1997’’.
(e) REPAYMENT OF EDUCATION LOANS FOR CERTAIN
HEALTH PROFESSIONALS WHO SERVE IN THE SELECTED
RESERVE.—Section 16302(d) of title 10, United States
Code, is amended by striking out ‘‘October 1, 1996’’ and
inserting in lieu thereof ‘‘October 1, 1997’’.
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(f) SPECIAL PAY FOR CRITICALLY SHORT WARTIME
HEALTH SPECIALISTS IN THE SELECTED RESERVES.—Sec-
tion 613(d) of the National Defense Authorization Act, Fis-
cal Year 1989 (37 U.S.C. 302 note) is amended by striking
out ‘‘September 30, 1996’’ and inserting in lieu thereof
‘‘September 30, 1997’’.
(g) SPECIAL PAY FOR NUCLEAR QUALIFIED OFFICERS
EXTENDING PERIOD OF ACTIVE SERVICE.—Section 312(e)
of title 37, United States Code, is amended by striking out
‘‘September 30, 1996’’ and inserting in lieu thereof ‘‘Sep-
tember 30, 1997’’.
(h) NUCLEAR CAREER ACCESSION BONUS.—Section
312b(c) of title 37, United States Code, is amended by strik-
ing out ‘‘September 30, 1996’’ and inserting in lieu thereof
‘‘September 30, 1997’’.
(i) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—
Section 312c(d) of title 37, United States Code, is amended
by striking out ‘‘October 1, 1996’’ and inserting in lieu
thereof ‘‘October 1, 1997’’.
SEC. 614. HAZARDOUS DUTY INCENTIVE PAY FOR WARRANT
OFFICERS AND ENLISTED MEMBERS SERVING
AS AIR WEAPONS CONTROLLERS.
Section 301 of title 37, United States Code, is amend-
ed—
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(1) in subsection (a)(11), by striking out ‘‘an of-
ficer (other than a warrant officer)’’ and inserting in
lieu thereof ‘‘a member of a uniformed service’’; and
(2) in subsection (c)(2)—
(A) by striking out ‘‘an officer’’ each place
it appears and inserting in lieu thereof ‘‘a mem-
ber’’;
(B) in subparagraph (A), by striking out
the table and inserting in lieu thereof the follow-
ing:
‘‘Pay grade
Years of service as an air weapons controller
2 or less
Over 2
Over 3
Over 4
Over 6
Over 8
Over 10
‘‘O–7 and above ....................
$200
$200
$200
$200
$200
$200
$200
‘‘O–6 ......................................
225
250
300
325
350
350
350
‘‘O–5 ......................................
200
250
300
325
350
350
350
‘‘O–4 ......................................
175
225
275
300
350
350
350
‘‘O–3 ......................................
125
156
188
206
350
350
350
‘‘O–2 ......................................
125
156
188
206
250
300
300
‘‘O–1 ......................................
125
156
188
206
250
250
250
‘‘W–4 ......................................
200
225
275
300
325
325
325
‘‘W–3 ......................................
175
225
275
300
325
325
325
‘‘W–2 ......................................
150
200
250
275
325
325
325
‘‘W–1 ......................................
100
125
150
175
325
325
325
‘‘E–9 ......................................
200
225
250
275
300
300
300
‘‘E–8 ......................................
200
225
250
275
300
300
300
‘‘E–7 ......................................
175
200
225
250
275
275
275
‘‘E–6 ......................................
156
175
200
225
250
250
250
‘‘E–5 ......................................
125
156
175
188
200
200
200
‘‘E–4 and below ....................
125
156
175
188
200
200
200
Over 12
Over 14
Over 16
Over 18
Over 20
Over 22
Over 24
Over 25
‘‘O–7 and above ....................
$200
$200
$200
$200
$200
$200
$200
$110
‘‘O–6 ......................................
350
350
350
350
300
250
250
225
‘‘O–5 ......................................
350
350
350
350
300
250
250
225
‘‘O–4 ......................................
350
350
350
350
300
250
250
225
‘‘O–3 ......................................
350
350
350
300
275
250
225
200
‘‘O–2 ......................................
300
300
300
275
245
210
200
180
‘‘O–1 ......................................
250
250
250
245
210
200
180
150
‘‘W–4 ......................................
325
325
325
325
276
250
225
200
‘‘W–3 ......................................
325
325
325
325
325
250
225
200
‘‘W–2 ......................................
325
325
325
325
275
250
225
200
‘‘W–1 ......................................
325
325
325
325
275
250
225
200
‘‘E–9 ......................................
300
300
300
300
275
230
200
200
‘‘E–8 ......................................
300
300
300
300
265
230
200
200
‘‘E–7 ......................................
300
300
300
300
265
230
200
200
‘‘E–6 ......................................
300
300
300
300
265
230
200
200
‘‘E–5 ......................................
250
250
250
250
225
200
175
150
‘‘E–4 and below ....................
200
200
200
200
175
150
125
125’’;
and
(C) in subparagraph (B), by striking out
‘‘the officer’’ each place it appears and inserting
in lieu thereof ‘‘the member’’.
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SEC. 615. AVIATION CAREER INCENTIVE PAY.
(a) YEARS
OF OPERATIONAL FLYING DUTIES RE-
QUIRED.—Paragraph (4) of section 301a(a) of title 37,
United States Code, is amended in the first sentence by
striking out ‘‘9’’ and inserting in lieu thereof ‘‘8’’.
(b) EXERCISE OF WAIVER AUTHORITY.—Paragraph
(5) of such section is amended by inserting after the second
sentence the following new sentence: ‘‘The Secretary con-
cerned may not delegate the authority in the preceding sen-
tence to permit the payment of incentive pay under this
subsection.’’.
SEC. 616. CLARIFICATION OF AUTHORITY TO PROVIDE SPE-
CIAL PAY FOR NURSES.
Section 302c(d)(1) of title 37, United States Code, is
amended—
(1) by striking out ‘‘or an officer’’ and inserting
in lieu thereof ‘‘an officer’’; and
(2) by inserting before the semicolon the follow-
ing: ‘‘, an officer of the Nurse Corps of the Army or
Navy, or an officer of the Air Force designated as a
nurse’’.
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SEC. 617. CONTINUOUS ENTITLEMENT TO CAREER SEA PAY
FOR CREW MEMBERS OF SHIPS DESIGNATED
AS TENDERS.
Section 305a(d)(1) of title 37, United States Code, is
amended by striking out subparagraph (A) and inserting
in lieu thereof the following:
‘‘(A) while permanently or temporarily assigned
to a ship, ship-based staff, or ship-based aviation unit
and—
‘‘(i) while serving on a ship the primary
mission of which is accomplished while under
way;
‘‘(ii) while serving as a member of the off-
crew of a two-crewed submarine; or
‘‘(iii) while serving as a member of a ten-
der-class ship (with the hull classification of sub-
marine or destroyer); or’’.
SEC. 618. INCREASE IN MAXIMUM RATE OF SPECIAL DUTY
ASSIGNMENT PAY FOR ENLISTED MEMBERS
SERVING AS RECRUITERS.
(a) SPECIAL MAXIMUM RATE FOR RECRUITERS.—Sec-
tion 307(a) of title 37, United States Code, is amended by
adding at the end the following new sentence: ‘‘In the case
of a member who is serving as a military recruiter and
is eligible for special duty assignment pay under this sub-
section by reason of such duty, the Secretary concerned may
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increase the monthly rate of special duty assignment pay
for the member to not more than $375.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on January 1, 1996.
Subtitle C—Travel and
Transportation Allowances
SEC. 621. CALCULATION ON BASIS OF MILEAGE TABLES OF
SECRETARY OF DEFENSE: REPEAL OF RE-
QUIREMENT.
Section 404(d)(1)(A) of title 37, United States Code,
is amended by striking out ‘‘, based on distances established
over the shortest usually traveled route, under mileage tables
prepared under the direction of the Secretary of Defense’’.
SEC. 622. DEPARTURE ALLOWANCES.
(a) ELIGIBILITY WHEN EVACUATION AUTHORIZED
BUT NOT ORDERED.—Section 405a(a) of title 37, United
States Code, is amended by striking out ‘‘ordered’’ each
place it appears and inserting in lieu thereof ‘‘authorized
or ordered’’.
(b) EFFECTIVE
DATE
AND
APPLICABILITY.—The
amendment made by subsection (a) shall take effect on Octo-
ber 1, 1995, and shall apply to persons authorized or or-
dered to depart as described in section 405a(a) of title 37,
United States Code, on or after such date.
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SEC. 623. DISLOCATION ALLOWANCE FOR MOVES RESULT-
ING FROM A BASE CLOSURE OR REALIGN-
MENT.
Section 407(a) of title 37, United States Code, is
amended by—
(1) by striking out ‘‘or’’ at the end of paragraph
(3);
(2) by striking out the period at the end of para-
graph (4) and inserting in lieu thereof ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(5) the member is ordered to move in connec-
tion with the closure or realignment of a military in-
stallation and, as a result, the member’s dependents
actually move or, in the case of a member without de-
pendents, the member actually moves.’’.
SEC. 624. TRANSPORTATION OF NONDEPENDENT CHILD
FROM SPONSOR’S STATION OVERSEAS AFTER
LOSS OF DEPENDENT STATUS WHILE OVER-
SEAS.
Section 406(h)(1) of title 37, United States Code, is
amended by striking out the last sentence and inserting in
lieu thereof the following new sentence: ‘‘If a member re-
ceives for an unmarried child of the member transportation
in kind to the member’s station outside the United States
or in Hawaii or Alaska, reimbursement therefor, or a mone-
tary allowance in place thereof and, while the member is
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serving at that station, the child ceases to be a dependent
of the member by reason of ceasing to satisfy an age require-
ment in section 401(a)(2) of this title or ceasing to be en-
rolled in an institution of higher education as described in
subparagraph (C) of such section, the child shall be treated
as a dependent of the member for purposes of this sub-
section.’’.
Subtitle 
D—Commissaries 
and
Nonappropriated Fund Instru-
mentalities
SEC. 631. USE OF COMMISSARY STORES BY MEMBERS OF
THE READY RESERVE.
(a) PERIOD OF USE.—Section 1063 of title 10, United
States Code, is amended—
(1) in subsection (a)(1)—
(A) by inserting ‘‘for a period of one year
on the same basis as members on active duty’’
before the period at the end of the first sentence;
and
(B) by striking out the second sentence;
(2) by striking out subsection (b); and
(3) by redesignating subsection (c) as subsection
(b).
(b) CONFORMING AND CLERICAL AMENDMENTS.—(1)
The heading for such section is amended to read as follows:
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‘‘§ 1063. Commissary stores: use by members of the
Ready Reserve’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 54 of title 10, United
State Code, is amended to read as follows:
‘‘1063. Commissary stores: use by members of the Ready Reserve.’’.
SEC. 632. USE OF COMMISSARY STORES BY RETIRED RE-
SERVES UNDER AGE 60 AND THEIR SURVI-
VORS.
(a) ELIGIBILITY.—Section 1064 of title 10, United
States Code, is amended to read as follows:
‘‘§ 1064. Commissary stores: use by retired Reserves
under age 60 and their survivors
‘‘(a) RETIRED RESERVES UNDER AGE 60.—Members
of the reserve components under 60 years of age who, but
for age, would be eligible for retired pay under chapter 1223
of this title (or under chapter 67 of this title as in effect
before December 1, 1994) shall be authorized to use com-
missary stores of the Department of Defense on the same
basis as members and former members of the armed forces
who have retired entitled to retired or retainer pay under
chapter 367, 571, or 867 of this title.
‘‘(b) SURVIVORS.—If a person authorized to use com-
missary stores under subsection (a) dies before attaining 60
years of age, the surviving dependents of the deceased person
shall be authorized to use commissary stores of the Depart-
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ment of Defense on the same basis as the surviving depend-
ents of persons who die after being retired entitled to retired
or retainer pay under chapter 367, 571, or 867 of this title.
‘‘(c) USE SUBJECT TO REGULATIONS.—Use of com-
missary stores under this section is subject to regulations
prescribed by the Secretary of Defense.’’.
(b) CLERICAL AMENDMENT.—The item relating to
such section in the table of sections at the beginning of chap-
ter 54 of title 10, United States Code, is amended to read
as follows:
‘‘1064. Commissary stores: use by retired Reserves under age 60 and their survi-
vors.’’.
SEC. 633. USE OF MORALE, WELFARE, AND RECREATION FA-
CILITIES BY MEMBERS OF RESERVE COMPO-
NENTS AND DEPENDENTS: CLARIFICATION
OF ENTITLEMENT.
Section 1065 of title 10, United States Code, is amend-
ed to read as follows:
‘‘§ 1065. Use of certain morale, welfare, and recre-
ation facilities by members of reserve com-
ponents and dependents
‘‘(a) MEMBERS OF THE SELECTED RESERVE.—Mem-
bers of the Selected Reserve in good standing (as determined
by the Secretary concerned) shall be permitted to use MWR
retail facilities on the same basis as members on active
duty.
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‘‘(b) MEMBERS
OF READY RESERVE NOT
IN SE-
LECTED RESERVE.—Subject to such regulations as the Sec-
retary of Defense may prescribe, members of the Ready Re-
serve (other than members of the Selected Reserve) may be
permitted to use MWR retail facilities on the same basis
as members serving on active duty.
‘‘(c) RETIREES UNDER AGE 60.—Members of the re-
serve components under 60 years of age who, but for age,
would be eligible for retired pay under chapter 1223 of this
title (or under chapter 67 of this title as in effect before
December 1, 1994) shall be permitted to use MWR retail
facilities on the same basis as members and former members
of the armed forces who have retired entitled to retired or
retainer pay under chapter 367, 571, or 867 of this title.
‘‘(d) DEPENDENTS.—(1) Dependents of members re-
ferred to in subsection (a) shall be permitted to use MWR
retail facilities on the same basis as dependents of members
on active duty.
‘‘(2) Dependents of members referred to in subsection
(c) shall be permitted to use MWR retail facilities on the
same basis as dependents of members and former members
of the armed forces who have retired entitled to retired or
retainer pay under chapter 367, 571, or 867 of this title.
‘‘(e) MWR RETAIL FACILITY DEFINED.—In this sec-
tion, the term ‘MWR retail facilities’ means exchange stores
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and other revenue generating facilities operated by
nonappropriated fund activities of the Department of De-
fense for the morale, welfare, and recreation of members of
the armed forces.’’.
Subtitle E—Other Matters
SEC. 641. COST-OF-LIVING INCREASES FOR RETIRED PAY.
(a) MODIFICATION OF DELAYS.—Clause (ii) of section
1401a(b)(2)(B) of title 10, United States Code, is amend-
ed—
(1) by striking out ‘‘1994, 1995, 1996, or 1997’’
and inserting in lieu thereof ‘‘1994 or 1995’’; and
(2) by striking out ‘‘September’’ and inserting in
lieu thereof ‘‘March’’.
(b) CONFORMING AMENDMENT.—The captions for such
section 1401a(2)(B) and for clause (ii) of such section are
amended by striking out ‘‘THROUGH 1998’’ and inserting in
lieu thereof ‘‘THROUGH 1996’’.
(c) REPEAL
OF SUPERSEDED PROVISION.—Section
8114A of Public Law 103–335 (108 Stat. 2648) is repealed.
SEC. 642. ELIGIBILITY FOR RETIRED PAY FOR NON-REGU-
LAR SERVICE DENIED FOR MEMBERS RECEIV-
ING CERTAIN SENTENCES IN COURTS-MAR-
TIAL.
Section 12731 of title 10, United States Code, is
amended—
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(1) by redesignating subsections (d), (e), and (f)
as subsections (e), (f), and (g), respectively; and
(2) by inserting after subsection (c) the following
new subsection:
‘‘(d) A person who is convicted of an offense under the
Uniform Code of Military Justice (chapter 47 of this title),
and whose executed sentence includes death, a dishonorable
discharge, a bad conduct discharge, or (in the case of an
officer) a dismissal is not eligible for retired pay under this
chapter.’’.
SEC. 643. RECOUPMENT OF ADMINISTRATIVE EXPENSES IN
GARNISHMENT ACTIONS.
(a) IN GENERAL.—Subsection (j) of section 5520a of
title 5, United States Code, is amended by striking out
paragraph (2) and inserting in lieu thereof the following
new paragraph (2):
‘‘(2) Such regulations shall provide that an agency’s
administrative costs in executing legal process to which the
agency is subject under this section shall be deducted from
the amount withheld from the pay of the employee con-
cerned pursuant to the legal process.’’.
(b) INVOLUNTARY ALLOTMENTS OF PAY OF MEMBERS
OF THE UNIFORMED SERVICES.—Subsection (k) of such sec-
tion is amended—
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(1) by redesignating paragraph (3) as para-
graph (4); and
(2) by inserting after paragraph (2) the follow-
ing new paragraph (3):
‘‘(3) Regulations under this subsection may also pro-
vide that the administrative costs in establishing and main-
taining an involuntary allotment be deducted from the
amount withheld from the pay of the member of the uni-
formed services concerned pursuant to such regulations.’’.
(c) DISPOSITION OF AMOUNTS WITHHELD FOR ADMIN-
ISTRATIVE EXPENSES.—Such section is further amended by
adding at the end the following:
‘‘(l) The amount of an agency’s administrative costs
deducted under regulations prescribed pursuant to sub-
section (j)(2) or (k)(2) shall be credited to the appropria-
tion, fund, or account from which such administrative costs
were paid.’’.
SEC. 644. AUTOMATIC MAXIMUM COVERAGE UNDER SERV-
ICEMEN’S GROUP LIFE INSURANCE.
Section 1967 of title 38, United States Code, is amend-
ed—
(1) in subsections (a) and (c), by striking out
‘‘$100,000’’ each place it appears and inserting in
lieu thereof in each instance ‘‘$200,000’’;
(2) by striking out subsection (e); and
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(3) by redesignating subsection (f) as subsection
(e).
SEC. 645. TERMINATION OF SERVICEMEN’S GROUP LIFE IN-
SURANCE FOR MEMBERS OF THE READY RE-
SERVE WHO FAIL TO PAY PREMIUMS.
Section 1968(a)(4) of title 38, United States Code, is
amended—
(1) by striking out the period at the end of sub-
paragraph (C) and inserting in lieu thereof a semi-
colon; and
(2) by adding at the end the following:
‘‘except that, if the member fails to make a direct re-
mittance of a premium for the insurance to the Sec-
retary when required to do so, the insurance shall
cease with respect to the member 120 days after the
date on which the Secretary transmits a notification
of the termination by mail addressed to the member
at the member’s last known address, unless the Sec-
retary accepts from the member full payment of the
premiums in arrears within such 120-day period.’’.
SEC. 646. REPORT ON EXTENDING TO JUNIOR NONCOMMIS-
SIONED OFFICERS PRIVILEGES PROVIDED
FOR SENIOR NONCOMMISSIONED OFFICERS.
(a) REPORT REQUIRED.—Not later than February 1,
1996, the Secretary of Defense shall submit to Congress a
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report containing the determinations of the Secretary re-
garding whether, in order to improve the working condi-
tions of noncommissioned officers in pay grades E–5 and
E–6, any of the privileges afforded noncommissioned offi-
cers in any of the pay grades above E–6 should be extended
to noncommissioned officers in pay grades E–5 and E–6.
(b) SPECIFIC RECOMMENDATION REGARDING ELEC-
TION OF BAS.—The Secretary shall include in the report
a determination on whether noncommissioned officers in
pay grades E–5 and E–6 should be afforded the same privi-
lege as noncommissioned officers in pay grades above E–
6 to elect to mess separately and receive the basic allowance
for subsistence.
(c) ADDITIONAL MATTERS.—The report shall also con-
tain a discussion of the following matters:
(1) The potential costs of extending additional
privileges to noncommissioned officers in pay grades
E–5 and E–6.
(2) The effects on readiness that would result
from extending the additional privileges.
(3) The options for extending the privileges on
an incremental basis over an extended period.
(d) RECOMMENDED
LEGISLATION.—The Secretary
shall include in the report any recommended legislation
that the Secretary considers necessary in order to authorize
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extension of a privilege as determined appropriate under
subsection (a).
SEC. 647. PAYMENT TO SURVIVORS OF DECEASED MEM-
BERS OF THE UNIFORMED SERVICES FOR ALL
LEAVE ACCRUED.
(a) INAPPLICABILITY OF 60-DAY LIMITATION.—Sec-
tion 501(d) of title 37, United States Code, is amended—
(1) in paragraph (1), by striking out the third
sentence; and
(2) by striking out paragraph (2) and inserting
in lieu thereof the following:
‘‘(2) The limitations in the second sentence of sub-
section (b)(3), subsection (f), and the second sentence of sub-
section (g) shall not apply with respect to a payment made
under this subsection.’’.
(b) CONFORMING AMENDMENT.—Section 501(f) of such
title is amended by striking out ‘‘, (d),’’ in the first sentence.
SEC. 648. ANNUITIES FOR CERTAIN MILITARY SURVIVING
SPOUSES.
(a) STUDY REQUIRED.—(1) The Secretary of Defense
shall conduct a study to determine the quantitative results
(described in subsection (b)) of enactment and exercise of
authority for the Secretary of the military department con-
cerned to pay an annuity to the qualified surviving spouse
of each member of the Armed Forces who—
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(A) died before March 21, 1974, and was entitled
to retired or retainer pay on the date of death; or
(B) was a member of a reserve component of the
Armed Forces during the period beginning on Sep-
tember 21, 1972, and ending on October 1, 1978, and
at the time of his death would have been entitled to
retired pay under chapter 67 of title 10, United
States Code (as in effect before December 1, 1994), but
for the fact that he was under 60 years of age.
(2) A qualified surviving spouse for purposes of para-
graph (1) is a surviving spouse who has not remarried and
who is not eligible for an annuity under section 4 of Public
Law 92–425 (10 U.S.C. 1448 note).
(b) REQUIRED DETERMINATIONS.—By means of the
study required under subsection (a), the Secretary shall de-
termine the following matters:
(1) The number of unremarried surviving
spouses of deceased members and deceased former
members of the Armed Forces referred to in subpara-
graph (A) of subsection (a)(1) who would be eligible
for an annuity under authority described in such sub-
section.
(2) The number of unremarried surviving
spouses of deceased members and deceased former
members of reserve components of the Armed Forces
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referred to in subparagraph (B) of subsection (a)(1)
who would be eligible for an annuity under authority
described in such subsection.
(3) The number of persons in each group of
unremarried former spouses described in paragraphs
(1) and (2) who are receiving a widow’s insurance
benefit or a widower’s insurance benefit under title II
of the Social Security Act on the basis of employment
of a deceased member or deceased former member re-
ferred to in subsection (a)(1).
(c) REPORT.—(1) Not later than March 1, 1996, the
Secretary of Defense shall submit to the Committee on
Armed Services of the Senate and the Committee on Na-
tional Security of the House of Representatives a report on
the results of the study.
(2) The Secretary shall include in the report a rec-
ommendation on the amount of the annuity that should be
authorized to be paid under any authority described in sub-
section (a)(1) together with a recommendation on whether
the annuity should be adjusted annually to offset increases
in the cost of living.
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SEC. 649. TRANSITIONAL COMPENSATION FOR DEPEND-
ENTS OF MEMBERS OF THE ARMED FORCES
SEPARATED FOR DEPENDENT ABUSE.
(a) 
CLARIFICATION
OF
ENTITLEMENT.—Section
1059(d) of title 10, United States Code, is amended by strik-
ing out ‘‘of a separation from active duty as’’ in the first
sentence.
(b) EFFECTIVE DATE FOR PROGRAM AUTHORITY.—
Section 554(b)(1) of the National Defense Authorization Act
for Fiscal Year 1994 (107 Stat. 1666; 10 U.S.C. 1059 note)
is amended by striking out ‘‘the date of the enactment of
this Act—’’ and inserting in lieu thereof ‘‘April 1, 1994—
’’.
TITLE VII—HEALTH CARE
Subtitle A—Health Care Services
SEC. 701. MEDICAL CARE FOR SURVIVING DEPENDENTS OF
RETIRED 
RESERVES 
WHO 
DIE 
BEFORE
AGE 60.
Section 1076(b) of title 10, United States Code, is
amended—
(1) in clause (2)—
(A) by striking out ‘‘death (A) would’’ and
inserting in lieu thereof ‘‘death would’’; and
(B) by striking out ‘‘, and (B) had elected
to participate in the Survivor Benefit Plan es-
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tablished under subchapter II of chapter 73 of
this title’’; and
(2) in the second sentence, by striking out ‘‘with-
out regard to subclause (B) of such clause’’.
SEC. 702. DENTAL INSURANCE FOR MEMBERS OF THE SE-
LECTED RESERVE.
(a) PROGRAM AUTHORIZATION.—(1) Chapter 55 of
title 10, United States Code, is amended by inserting after
section 1076a the following new section:
‘‘§ 1076b. Selected Reserve dental insurance
‘‘(a) AUTHORITY TO ESTABLISH PLAN.—The Sec-
retary of Defense shall establish a dental insurance plan
for members of the Selected Reserve of the Ready Reserve.
The plan shall provide for voluntary enrollment and for
premium sharing between the Department of Defense and
the members enrolled in the plan. The plan shall be admin-
istered under regulations prescribed by the Secretary of De-
fense.
‘‘(b) PREMIUM SHARING.—(1) A member enrolling in
the dental insurance plan shall pay a share of the premium
charged for the insurance coverage. The member’s share
may not exceed $25 per month.
‘‘(2) The Secretary of Defense may reduce the monthly
premium required to be paid by enlisted members under
paragraph (1) if the Secretary determines that the reduc-
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tion is appropriate in order to assist enlisted members to
participate in the dental insurance plan.
‘‘(3) A member’s share of the premium for coverage by
the dental insurance plan shall be deducted and withheld
from the basic pay payable to the member for inactive duty
training and from the basic pay payable to the member
for active duty.
‘‘(4) The Secretary of Defense shall pay the portion
of the premium charged for coverage of a member under
the dental insurance plan that exceeds the amount paid by
the member.
‘‘(c) BENEFITS AVAILABLE UNDER THE PLAN.—The
dental insurance plan shall provide benefits for basic dental
care and treatment, including diagnostic services, preventa-
tive services, basic restorative services, and emergency oral
examinations.
‘‘(d) TERMINATION OF COVERAGE.—The coverage of a
member by the dental insurance plan shall terminate on
the last day of the month in which the member is dis-
charged, transfers to the Individual Ready Reserve, Stand-
by Reserve, or Retired Reserve, or is ordered to active duty
for a period of more than 30 days.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
1076a the following:
‘‘1076b. Selected Reserve dental insurance.’’.
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(b) AUTHORIZATION
OF APPROPRIATIONS.—Of the
funds authorized to be appropriated under section 301(16),
$9,000,000 shall be available to pay the Department of De-
fense share of the premium required for members covered
by the dental insurance plan established pursuant to section
1076b of title 10, United States Code, as added by sub-
section (a).
SEC. 703. MODIFICATION OF REQUIREMENTS REGARDING
ROUTINE PHYSICAL EXAMINATIONS AND IM-
MUNIZATIONS UNDER CHAMPUS.
Section 1079(a) of title 10, United States Code, is
amended by striking out paragraph (2) and inserting in
lieu thereof the following new paragraph:
‘‘(2) consistent with such regulations as the Sec-
retary of Defense may prescribe regarding the content
of health promotion and disease prevention visits, the
schedule of pap smears and mammograms, and the
types and schedule of immunizations—
‘‘(A) for dependents under six years of age,
both health promotion and disease prevention
visits and immunizations may be provided; and
‘‘(B) for dependents six years of age or
older, health promotion and disease prevention
visits may be provided in connection with im-
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munizations or with diagnostic or preventive
pap smears and mammograms;’’.
SEC. 704. PERMANENT AUTHORITY TO CARRY OUT SPE-
CIALIZED TREATMENT FACILITY PROGRAM.
Section 1105 of title 10, United States Code, is amend-
ed by striking out subsection (h).
SEC. 705. WAIVER OF MEDICARE PART B LATE ENROLL-
MENT PENALTY AND ESTABLISHMENT OF
SPECIAL ENROLLMENT PERIOD FOR CERTAIN
MILITARY RETIREES AND DEPENDENTS.
Section 1837 of the Social Security Act (42 U.S.C.
1395p) is amended by adding at the end the following new
subsection:
‘‘(j)(1) The Secretary shall make special provisions for
the enrollment of an individual who is a covered beneficiary
under chapter 55 of title 10, United States Code, and who
is affected adversely by the closure of a military medical
treatment facility of the Department of Defense pursuant
to a closure or realignment of a military installation.
‘‘(2) The special enrollment provisions required by
paragraph (1) shall be established in regulations issued by
the Secretary. The regulations shall—
‘‘(A) identify individuals covered by paragraph
(1) in accordance with regulations providing for such
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identification that are prescribed by the Secretary of
Defense;
‘‘(B) provide for a special enrollment period of
at least 90 days to be scheduled at some time proxi-
mate to the date on which the military medical treat-
ment facility involved is scheduled to be closed; and
‘‘(C) provide that, with respect to individuals
who enroll pursuant to paragraph (1), the increase in
premiums under section 1839(b) due to late enroll-
ment under this part shall not apply.
‘‘(3) For purposes of this subsection—
‘‘(A) the term ‘covered beneficiary’ has the mean-
ing given such term in section 1072(5) of title 10,
United States Code;
‘‘(B) the term ‘military medical treatment facil-
ity’ means a facility of a uniformed service referred
to in section 1074(a) of title 10, United States Code,
in which health care is provided; and
‘‘(C) the terms ‘military installation’ and ‘re-
alignment’ have the meanings given such terms—
‘‘(i) in section 209 of the Defense Authoriza-
tion Amendments and Base Closure and Re-
alignment Act (10 U.S.C. 2687 note), in the case
of a closure or realignment under title II of such
Act;
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‘‘(ii) in section 2910 of the Defense Base
Closure and Realignment Act of 1990 (title
XXIX of Public Law 101–510; 10 U.S.C. 2687
note), in the case of a closure or realignment
under such Act; or
‘‘(iii) in subsection (e) of section 2687 of
title 10, United States Code, in the case of a clo-
sure or realignment under such section.’’.
Subtitle B—TRICARE Program
SEC. 711. DEFINITION OF TRICARE PROGRAM AND OTHER
TERMS.
In this subtitle:
(1) The term ‘‘TRICARE program’’ means the
managed health care program that is established by
the Secretary of Defense under the authority of chap-
ter 55 of title 10, United States Code, principally sec-
tion 1097 of such title, and includes the competitive
selection of contractors to financially underwrite the
delivery of health care services under the Civilian
Health and Medical Program of the Uniformed Serv-
ices.
(2) The term ‘‘covered beneficiary’’ means a ben-
eficiary under chapter 55 of title 10, United States
Code, including a beneficiary under section 1074(a)
of such title.
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(3) The term ‘‘Uniformed Services Treatment
Facility’’ means a facility deemed to be a facility of
the uniformed services by virtue of section 911(a) of
the Military Construction Authorization Act, 1982
(42 U.S.C. 248c(a)).
(4) The term ‘‘administering Secretaries’’ has the
meaning given such term in section 1072(3) of title
10, United States Code.
SEC. 712. PROVISION OF TRICARE UNIFORM BENEFITS BY
UNIFORMED SERVICES TREATMENT FACILI-
TIES.
(a) REQUIREMENT.—Subject to subsection (b), upon
the implementation of the TRICARE program in the
catchment area served by a Uniformed Services Treatment
Facility, the facility shall provide to the covered bene-
ficiaries enrolled in a health care plan of such facility the
same health care benefits (subject to the same conditions
and limitations) as are available to covered beneficiaries
in that area under the TRICARE program.
(b) EFFECT ON CURRENT ENROLLEES.—(1) A covered
beneficiary who has been continuously enrolled on and after
October 1, 1995, in a health care plan offered by a Uni-
formed Services Treatment Facility pursuant to a contract
between the Secretary of Defense and the facility may elect
to continue to receive health care benefits in accordance
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with the plan instead of benefits in accordance with sub-
section (a).
(2) The Uniform Services Treatment Facility con-
cerned shall continue to provide benefits to a covered bene-
ficiary in accordance with an election of benefits by that
beneficiary under paragraph (1). The requirement to do so
shall terminate on the effective date of any contract between
the Secretary of Defense and the facility that—
(A) is entered into on or after the date of the
election; and
(B) requires the health care plan offered by the
facility for covered beneficiaries to provide health care
benefits in accordance with subsection (a).
SEC. 713. SENSE OF SENATE ON ACCESS OF MEDICARE ELI-
GIBLE 
BENEFICIARIES 
OF 
CHAMPUS 
TO
HEALTH CARE UNDER TRICARE.
It is the sense of the Senate—
(1) that the Secretary of Defense should develop
a program to ensure that covered beneficiaries who
are eligible for medicare under title XVIII of the So-
cial Security Act (42 U.S.C. 1395 et seq.) and who
reside in a region in which the TRICARE program
has been implemented have adequate access to health
care services after the implementation of the
TRICARE program in that region; and
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(2) to support strongly, as a means of ensuring
such access, the reimbursement of the Department of
Defense by the Secretary of Health and Human Serv-
ices for health care services provided such bene-
ficiaries at the medical treatment facilities of the De-
partment of Defense.
SEC. 714. PILOT PROGRAM OF INDIVIDUALIZED RESIDEN-
TIAL MENTAL HEALTH SERVICES.
(a) PROGRAM REQUIRED.—During fiscal year 1996,
the Secretary of Defense, in consultation with the other ad-
ministering Secretaries, shall carry out a pilot program for
providing wraparound services to covered beneficiaries who
are children in need of mental health services. The Secretary
shall carry out the pilot program in one region in which
the TRICARE program has been implemented as of the be-
ginning of such fiscal year.
(b) WRAPAROUND SERVICES DEFINED.—For purposes
of this section, wraparound services are individualized
mental health services that a provider provides, principally
in a residential setting but also with follow-up services, in
return for payment on a case rate basis. For payment of
the case rate for a patient, the provider incurs the risk that
it will be necessary for the provider to provide the patient
with additional mental health services intermittently or on
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a longer term basis after completion of the services provided
on a residential basis under a treatment plan.
(c) PILOT PROGRAM AGREEMENT.—Under the pilot
program the Secretary of Defense shall enter into an agree-
ment with a provider of mental health services that requires
the provider—
(1) to provide wraparound services to covered
beneficiaries referred to in subsection (a);
(2) to continue to provide such services to each
beneficiary as needed during the period of the agree-
ment even if the patient relocates outside the
TRICARE program region involved (but inside the
United States) during that period; and
(3) to accept as payment for such services an
amount not in excess of the amount of the standard
CHAMPUS residential treatment clinic benefit pay-
able with respect to the covered beneficiary concerned
(as determined in accordance with section 8.1 of
chapter 3 of volume II of the CHAMPUS policy man-
ual).
(d) REPORT.—Not later than March 1, 1997, the Sec-
retary of Defense shall submit to the Committee on Armed
Services of the Senate and the Committee on National Secu-
rity of the House of Representatives a report on the pro-
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gram carried out under this section. The report shall con-
tain—
(1) an assessment of the effectiveness of the pro-
gram; and
(2) the Secretary’s views regarding whether the
program should be implemented in all regions where
the TRICARE program is carried out.
Subtitle C—Uniformed Services
Treatment Facilities
SEC. 721. DELAY OF TERMINATION OF STATUS OF CERTAIN
FACILITIES AS UNIFORMED SERVICES TREAT-
MENT FACILITIES.
Section 1252(e) of the Department of Defense Author-
ization Act, 1984 (42 U.S.C. 248d(e)) is amended by strik-
ing out ‘‘December 31, 1996’’ in the first sentence and in-
serting in lieu thereof ‘‘September 30, 1997’’.
SEC. 722. APPLICABILITY OF FEDERAL ACQUISITION REGU-
LATION 
TO 
PARTICIPATION 
AGREEMENTS
WITH UNIFORMED SERVICES TREATMENT FA-
CILITIES.
Section 718(c) of the National Defense Authorization
Act for Fiscal Year 1991 (Public Law 101–510; 104 Stat.
1587) is amended—
(1) in the second sentence of paragraph (1), by
striking out ‘‘A participation agreement’’ and insert-
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ing in lieu thereof ‘‘Except as provided in paragraph
(4), a participation agreement’’;
(2) by redesignating paragraph (4) as para-
graph (5); and
(3) by inserting after paragraph (3) the follow-
ing new paragraph:
‘‘(4) APPLICABILITY OF FEDERAL ACQUISITION
REGULATION.—On and after the date of enactment of
the National Defense Authorization Act for Fiscal
Year 1996, the Federal Acquisition Regulation issued
pursuant to section 25(c) of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 421(c)) shall apply to
any action to modify an existing participation agree-
ment and to any action by the Secretary of Defense
and a Uniformed Services Treatment Facility to
enter into a new participation agreement.’’.
SEC. 723. APPLICABILITY OF CHAMPUS PAYMENT RULES IN
CERTAIN CASES.
Section 1074 of title 10, United States Code, is amend-
ed by adding at the end the following:
‘‘(d)(1) The Secretary of Defense, after consultation
with the other administering Secretaries, may by regulation
require a private CHAMPUS provider to apply the
CHAMPUS payment rules (subject to any modifications
considered appropriate by the Secretary) in imposing
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charges for health care that the provider provides outside
the catchment area of a Uniformed Services Treatment Fa-
cility to a member of the uniformed services who is enrolled
in a health care plan of the Uniformed Services Treatment
Facility.
‘‘(2) In this subsection:
‘‘(A) The term ‘private CHAMPUS provider’
means a private facility or health care provider that
is a health care provider under the Civilian Health
and Medical Program of the Uniformed Services.
‘‘(B) The term ‘CHAMPUS payment rules’
means the payment rules referred to in subsection (c).
‘‘(C) The term ‘Uniformed Services Treatment
Facility’ means a facility deemed to be a facility of
the uniformed services under section 911(a) of the
Military Construction Authorization Act, 1982 (42
U.S.C. 248c(a)).’’.
Subtitle D—Other Changes to Exist-
ing 
Laws 
Regarding 
Health
Care Management
SEC. 731. INVESTMENT INCENTIVE FOR MANAGED HEALTH
CARE IN MEDICAL TREATMENT FACILITIES.
(a) AVAILABILITY OF 3 PERCENT OF APPROPRIATIONS
FOR TWO FISCAL YEARS.—Chapter 55 of title 10, United
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States Code, is amended by inserting after section 1071 the
following new section:
‘‘§ 1071a. Availability of appropriations
‘‘Of the total amount authorized to be appropriated for
a fiscal year for programs and activities carried out under
this chapter, the amount equal to three percent of such total
amount is authorized to be appropriated to remain avail-
able until the end of the following fiscal year.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 55 of title 10, United States Code,
is amended by inserting after the item relating to section
1071 the following:
‘‘1071a. Availability of appropriations.’’.
SEC. 732. REVISION AND CODIFICATION OF LIMITATIONS
ON PHYSICIAN PAYMENTS UNDER CHAMPUS.
(a) IN GENERAL.—Section 1079(h) of title 10, United
States Code, is amended to read as follows:
‘‘(h)(1) Subject to paragraph (2), payment for a charge
for services by an individual health care professional (or
other noninstitutional health care provider) for which a
claim is submitted under a plan contracted for under sub-
section (a) shall be limited to the lesser of—
‘‘(A) the amount equivalent to the 80th percentile
of billed charges, as determined by the Secretary of
Defense in consultation with the other administering
Secretaries, for similar services in the same locality
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during a 12-month base period that the Secretary
shall define and may adjust as frequently as the Sec-
retary considers appropriate; or
‘‘(B) the amount payable for charges for such
services (or similar services) under title XVIII of the
Social Security Act (42 U.S.C. 1395 et seq.) as deter-
mined in accordance with the reimbursement rules
applicable to payments for medical and other health
services under that title.
‘‘(2) The amount to be paid to an individual health
care professional (or other noninstitutional health care pro-
vider) shall be determined under regulations prescribed by
the Secretary of Defense in consultation with the other ad-
ministering Secretaries. Such regulations—
‘‘(A) may provide for such exceptions from the
limitation on payments set forth in paragraph (1) as
the Secretary determines necessary to ensure that cov-
ered beneficiaries have adequate access to health care
services, including payment of amounts greater than
the amounts otherwise payable under that paragraph
when enrollees in managed care programs obtain cov-
ered emergency services from nonparticipating pro-
viders; and
‘‘(B) shall establish limitations (similar to those
established under title XVIII of the Social Security
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Act) on beneficiary liability for charges of an individ-
ual health care professional (or other noninstitutional
health care provider).’’.
(b) TRANSITION.—In prescribing regulations under
paragraph (2) of section 1079(h) of title 10, United States
Code, as amended by subsection (a), the Secretary of De-
fense shall provide—
(1) for a period of transition between the pay-
ment methodology in effect under section 1079(h) of
such title, as such section was in effect on the day be-
fore the date of the enactment of this Act, and the
payment methodology under section 1079(h) of such
title, as so amended; and
(2) that the amount payable under such section
1079(h), as so amended, for a charge for a service
under a claim submitted during the period may not
be less than 85 percent of the maximum amount that
was payable under such section 1079(h), in effect on
the day before the date of the enactment of this Act,
for charges for the same service during the 1-year pe-
riod (or a period of other duration that the Secretary
considers appropriate) ending on the day before such
date.
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SEC. 733. PERSONAL SERVICES CONTRACTS FOR MEDICAL
TREATMENT 
FACILITIES 
OF 
THE 
COAST
GUARD.
(a) CONTRACTING AUTHORITY.—Section 1091(a) of
title 10, United States Code, is amended—
(1) by inserting after ‘‘Secretary of Defense’’ the
following: ‘‘, with respect to medical treatment facili-
ties of the Department of Defense, and the Secretary
of Transportation, with respect to medical treatment
facilities of the Coast Guard when the Coast Guard
is not operating as a service in the Navy,’’; and
(2) by striking out ‘‘medical treatment facilities
of the Department of Defense’’ and inserting in lieu
thereof ‘‘such facilities’’.
(b) RATIFICATION OF EXISTING CONTRACTS.—Any ex-
ercise of authority under section 1091 of title 10, United
States Code, to enter into a personal services contract on
behalf of the Coast Guard before the effective date of the
amendments made by subsection (a) is hereby ratified.
(c) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on the earlier of the date of the
enactment of this Act or October 1, 1995.
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SEC. 734. DISCLOSURE OF INFORMATION IN MEDICARE
AND MEDICAID COVERAGE DATA BANK TO IM-
PROVE 
COLLECTION 
FROM 
RESPONSIBLE
PARTIES FOR HEALTH CARE SERVICES FUR-
NISHED UNDER CHAMPUS.
(a) PURPOSE OF DATA BANK.—Subsection (a) of sec-
tion 1144 of the Social Security Act (42 U.S.C. 1320b–14)
is amended—
(1) by striking out ‘‘and’’ at the end of the para-
graph (1);
(2) by striking out the period at the end of para-
graph (2) and inserting in lieu thereof ‘‘, and’’; and
(3) by adding at the end the following:
‘‘(3) assist in the identification of, and collection
from, third parties responsible for the reimbursement
of the costs incurred by the United States for health
care services furnished to individuals who are covered
beneficiaries under chapter 55 of title 10, United
States Code, upon request by the administering Sec-
retaries.’’.
(b) AUTHORITY TO DISCLOSE INFORMATION.—Sub-
section (b)(2) of such section is amended—
(1) by striking out ‘‘and’’ at the end of subpara-
graph (A);
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(2) by striking out the period at the end of sub-
paragraph (B) and inserting in lieu thereof ‘‘, and’’;
and
(3) by adding at the end the following:
‘‘(C) (subject to the restriction in subsection
(c)(7) of this section) to disclose any other infor-
mation in the Data Bank to the administering
Secretaries for purposes described in subsection
(a)(3) of this section.’’.
(c) DEFINITION.—Subsection (f) of such section is
amended by adding at the end the following:
‘‘(5) ADMINISTERING SECRETARIES.—The term
‘administering Secretaries’ shall have the meaning
given to such term by section 1072(3) of title 10,
United States Code.’’.
Subtitle E—Other Matters
SEC. 741. TRISERVICE NURSING RESEARCH.
(a) PROGRAM AUTHORIZED.—Chapter 104 of title 10,
United States Code, is amended by adding at the end the
following:
‘‘§ 2116. Research on the furnishing of care and serv-
ices by nurses of the armed forces
‘‘(a) PROGRAM AUTHORIZED.—The Board of Regents
of the University may establish at the University a program
of research on the furnishing of care and services by nurses
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in the Armed Forces (hereafter in this section referred to
as ‘military nursing research’). A program carried out
under this section shall be known as the ‘TriService Nursing
Research Program’.
‘‘(b) 
TRISERVICE
RESEARCH
GROUP.—(1) 
The
TriService Nursing Research Program shall be adminis-
tered by a TriService Nursing Research Group composed
of Army, Navy, and Air Force nurses who are involved in
military nursing research and are designated by the Sec-
retary concerned to serve as members of the group.
‘‘(2) The TriService Nursing Research Group shall—
‘‘(A) develop for the Department of Defense rec-
ommended guidelines for requesting, reviewing, and
funding proposed military nursing research projects;
and
‘‘(B) make available to Army, Navy, and Air
Force nurses and Department of Defense officials con-
cerned with military nursing research—
‘‘(i) information about nursing research
projects that are being developed or carried out
in the Army, Navy, and Air Force; and
‘‘(ii) expertise and information beneficial to
the encouragement of meaningful nursing re-
search.
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‘‘(c) RESEARCH TOPICS.—For purposes of this section,
military nursing research includes research on the following
issues:
‘‘(1) Issues regarding how to improve the results
of nursing care and services provided in the armed
forces in time of peace.
‘‘(2) Issues regarding how to improve the results
of nursing care and services provided in the armed
forces in time of war.
‘‘(3) Issues regarding how to prevent complica-
tions associated with battle injuries.
‘‘(4) Issues regarding how to prevent complica-
tions associated with the transporting of patients in
the military medical evacuation system.
‘‘(5) Issues regarding how to improve methods of
training nursing personnel.
‘‘(6) Clinical nursing issues, including such is-
sues as prevention and treatment of child abuse and
spouse abuse.
‘‘(7) Women’s health issues.
‘‘(8) Wellness issues.
‘‘(9) Preventive medicine issues.
‘‘(10) Home care management issues.
‘‘(11) Case management issues.’’.
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(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 104 of such title is amended by
adding at the end the following:
‘‘2116. Research on the furnishing of care and services by nurses of the armed
forces.’’.
SEC. 742. FISHER HOUSE TRUST FUNDS.
(a) ESTABLISHMENT.—(1) Chapter 131 of title 10,
United States Code, is amended by adding at the end the
following:
‘‘§ 2221. Fisher House trust funds
‘‘(a) ESTABLISHMENT.—The following trust funds are
established on the books of the Treasury:
‘‘(1) The Fisher House Trust Fund, Department
of the Army.
‘‘(2) The Fisher House Trust Fund, Department
of the Air Force.
‘‘(b) INVESTMENT.—Funds in the trust funds may be
invested in securities of the United States. Earnings and
gains realized from the investment of funds in a trust fund
shall be credited to the trust fund.
‘‘(c) USE OF FUNDS.—(1) Amounts in the Fisher
House Trust Fund, Department of the Army, that are at-
tributable to earnings or gains realized from investments
shall be available for operation and maintenance of Fisher
houses that are located in proximity to medical treatment
facilities of the Army.
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‘‘(2) Amounts in the Fisher House Trust Fund, De-
partment of the Air Force, that are attributable to earnings
or gains realized from investments shall be available for op-
eration and maintenance of Fisher houses that are located
in proximity to medical treatment facilities of the Air
Force.
‘‘(3) The use of funds under this section is subject to
the requirements of section 1321(b)(2) of title 31.
‘‘(d) FISHER HOUSES DEFINED.—For purposes of this
section, Fisher houses are housing facilities that are located
in proximity to medical treatment facilities of the Army
or Air Force and are available for residential use on a tem-
porary basis by patients at such facilities, members of the
family of such patients, and others providing the equivalent
of familial support for such patients.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following:
‘‘2221. Fisher House trust funds.’’.
(b) CORPUS OF TRUST FUNDS.—(1) The Secretary of
the Treasury shall—
(A) close the accounts established with the funds
that were required by section 8019 of Public Law
102–172 (105 Stat. 1175) and section 9023 of Public
Law 102–396 (106 Stat. 1905) to be transferred to an
appropriated trust fund; and
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(B) transfer the amounts in such accounts to the
Fisher House Trust Fund, Department of the Army,
established by subsection (a)(1) of section 2221 of title
10, United States Code, as added by subsection (a).
(2) The Secretary of the Air Force shall transfer to
the Fisher House Trust Fund, Department of the Air Force,
established by subsection (a)(2) of section 2221 of title 10,
United States Code (as added by section (a)), all amounts
in the accounts for Air Force installations and other facili-
ties that, as of the date of the enactment of this Act, are
available for operation and maintenance of Fisher houses
(as defined in subsection (c) of such section 2221).
(c) CONFORMING AMENDMENTS.—Section 1321 of title
31, United States Code, is amended—
(1) by adding at the end of subsection (a) the fol-
lowing:
‘‘(92) Fisher House Trust Fund, Department of
the Army.
‘‘(93) Fisher House Trust Fund, Department of
the Air Force.’’; and
(2) in subsection (b)—
(A) by inserting ‘‘(1)’’ after ‘‘(b)’’;
(B) in the second sentence, by striking out
‘‘Amounts accruing to these funds (except to the
trust fund ‘Armed Forces Retirement Home
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Trust Fund’)’’ and inserting in lieu thereof ‘‘Ex-
cept as provided in paragraph (2), amounts ac-
cruing to these funds’’;
(C) by striking out the third sentence; and
(D) by adding at the end the following:
‘‘(2) Expenditures from the following trust funds shall
be made only under annual appropriations and only if the
appropriations are specifically authorized by law:
‘‘(A) Armed Forces Retirement Home Trust
Fund.
‘‘(B) Fisher House Trust Fund, Department of
the Army.
‘‘(C) Fisher House Trust Fund, Department of
the Air Force.’’.
(d) REPEAL OF SUPERSEDED PROVISIONS.—The fol-
lowing provisions of law are repealed:
(1) Section 8019 of Public Law 102–172 (105
Stat. 1175).
(2) Section 9023 of Public Law 102–396 (106
Stat. 1905).
(3) Section 8019 of Public Law 103–139 (107
Stat. 1441).
(4) Section 8017 of Public Law 103–335 (108
Stat. 2620; 10 U.S.C. 1074 note).
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SEC. 743. APPLICABILITY OF LIMITATION ON PRICES OF
PHARMACEUTICALS PROCURED FOR COAST
GUARD.
Section 8126(b) of title 38, United States Code, is
amended by adding at the end the following:
‘‘(4) The Coast Guard.’’.
SEC. 744. REPORT ON EFFECT OF CLOSURE OF FITZSIMONS
ARMY MEDICAL CENTER, COLORADO, ON PRO-
VISION OF CARE TO MILITARY PERSONNEL
AND DEPENDENTS EXPERIENCING HEALTH
DIFFICULTIES ASSOCIATED WITH PERSIAN
GULF SYNDROME.
Not later than 90 days after the date of the enactment
of this Act, the Secretary of Defense shall submit to Congress
a report that—
(1) assesses the effects of the closure of Fitzsimons
Army Medical Center, Colorado, on the capability of
the Department of Defense to provide appropriate and
adequate health care to members and former members
of the Armed Forces and their dependents who suffer
from undiagnosed illnesses (or combination of ill-
nesses) as a result of service in the Armed Forces in
the Southwest Asia theater of operations during the
Persian Gulf War; and
(2) describes the plans of the Secretary of Defense
and the Secretary of the Army to ensure that ade-
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quate and appropriate health care is available to such
members, former members, and their dependents for
such illnesses.
TITLE VIII—ACQUISITION 
POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
Subtitle A—Acquisition Reform
SEC. 801. WAIVERS FROM CANCELLATION OF FUNDS.
Notwithstanding section 1552(a) of title 31, United
States Code, funds appropriated for any fiscal year after
fiscal year 1995 that are administratively reserved or com-
mitted for satellite on-orbit incentive fees shall remain
available for obligation and expenditure until the fee is
earned, but only if and to the extent that section 1512 of
title 31, United States Code, the Impoundment Control Act
(2 U.S.C. 681 et seq.), and other applicable provisions of
law are complied with in the reservation and commitment
of funds for that purpose
SEC. 802. PROCUREMENT NOTICE POSTING THRESHOLDS
AND SUBCONTRACTS FOR OCEAN TRANSPOR-
TATION SERVICES.
(a) PROCUREMENT NOTICE POSTING THRESHOLDS.—
Section 18(a)(1)(B) of the Office of Federal Procurement
Policy Act (41 U.S.C. 416(a)(1)(B)) is amended—
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(1) by striking out ‘‘subsection (f)—’’ and all
that follows through the end of the subparagraph and
inserting in lieu thereof ‘‘subsection (b); and’’; and
(2) by inserting after ‘‘property or services’’ the
following: for a price expected to exceed $10,000, but
not to exceed $25,000,’’.
(b) SUBCONTRACTS
FOR OCEAN TRANSPORTATION
SERVICES.—Notwithstanding any other provision of law,
neither section 901(b) of the Merchant Marine Act, 1936
(46 U.S.C. 1241(b)) nor section 2631 of title 10, United
States Code, shall be included prior to May 1, 1996 on any
list promulgated under section 34(b) of the Office of Federal
Procurement Policy Act (41 U.S.C. 430(b)).
SEC. 803. PROMPT RESOLUTION OF AUDIT RECOMMENDA-
TIONS.
Section 6009 of the Federal Acquisition Streamlining
Act of 1994 (Public Law 103–355; 108 Stat. 3367, October
14, 1994) is amended to read as follows:
‘‘SEC. 6009. PROMPT MANAGEMENT DECISIONS AND IMPLE-
MENTATION OF AUDIT RECOMMENDATIONS.
‘‘(a) MANAGEMENT DECISIONS.—(1) The head of a
Federal agency shall make management decisions on all
findings and recommendations set forth in an audit report
of the inspector general of the agency within a maximum
of six months after the issuance of the report.
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‘‘(2) The head of a Federal agency shall make manage-
ment decisions on all findings and recommendations set
forth in an audit report of any auditor from outside the
Federal Government within a maximum of six months after
the date on which the head of the agency receives the report.
‘‘(b) COMPLETIONS OF ACTIONS.—The head of a Fed-
eral agency shall complete final action on each management
decision required with regard to a recommendation in an
inspector general’s report under subsection (a)(1) within 12
months after the date of the inspector general’s report. If
the head of the agency fails to complete final action with
regard to a management decision within the 12-month pe-
riod, the inspector general concerned shall identify the mat-
ter in each of the inspector general’s semiannual reports
pursuant to section 5(a)(3) of the Inspector General Act of
1978 (5 U.S.C. App.) until final action on the management
decision is completed.’’.
SEC. 804. TEST PROGRAM FOR NEGOTIATION OF COM-
PREHENSIVE SUBCONTRACTING PLANS.
(a) REVISION OF AUTHORITY.—Subsection (a) of sec-
tion 834 of National Defense Authorization Act for Fiscal
Years 1990 and 1991 (15 U.S.C. 637 note) is amended by
striking out paragraph (1) and inserting in lieu thereof the
following:
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‘‘(1) The Secretary of Defense shall establish a test pro-
gram under which contracting activities in the military de-
partments and the Defense Agencies are authorized to un-
dertake one or more demonstration projects to determine
whether the negotiation and administration of comprehen-
sive subcontracting plans will reduce administrative bur-
dens on contractors while enhancing opportunities provided
under Department of Defense contracts for small business
concerns and small business concerns owned and controlled
by socially and economically disadvantaged individuals. In
selecting the contracting activities to undertake demonstra-
tion projects, the Secretary shall take such action as is nec-
essary to ensure that a broad range of the supplies and serv-
ices acquired by the Department of Defense are included
in the test program.’’.
(b) COVERED CONTRACTORS.—Subsection (b) of such
section is amended by striking out paragraph (3) and in-
serting in lieu thereof the following:
‘‘(3) A Department of Defense contractor referred to
in paragraph (1) is, with respect to a comprehensive sub-
contracting plan negotiated in any fiscal year, a business
concern that, during the immediately preceding fiscal year,
furnished the Department of Defense with supplies or serv-
ices (including professional services, research and develop-
ment services, and construction services) pursuant to at
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least three Department of Defense contracts having an ag-
gregate value of at least $5,000,000.’’.
(c) TECHNICAL
AMENDMENTS.—Such section is
amended—
(1) by striking out subsection (g); and
(2) by redesignating subsection (h) as subsection
(g).
SEC. 805. NAVAL SALVAGE FACILITIES.
Chapter 637 of title 10, United States Code, is amend-
ed to read as follows:
‘‘CHAPTER 637—SALVAGE FACILITIES
‘‘Sec.
‘‘7361. Authority to provide for necessary salvage facilities.
‘‘7362. Acquisition and transfer of vessels and equipment.
‘‘7363. Settlement of claims.
‘‘7364. Disposition of receipts.
‘‘§ 7361. Authority to provide for necessary salvage fa-
cilities
‘‘(a) AUTHORITY.—The Secretary of the Navy may
contract or otherwise provide for necessary salvage facilities
for public and private vessels.
‘‘(b) COORDINATION WITH SECRETARY OF TRANSPOR-
TATION.—The Secretary shall submit to the Secretary of
Transportation for comment each proposed salvage contract
that affects the interests of the Department of Transpor-
tation.
‘‘(c) LIMITATION.—The Secretary of the Navy may
enter into a contract under subsection (a) only if the Sec-
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retary determines that available commercial salvage facili-
ties are inadequate to meet the Navy’s requirements and
provides public notice of the intent to enter into such a con-
tract.
‘‘§ 7362. Acquisition and transfer of vessels and equip-
ment
‘‘(a) AUTHORITY.—The Secretary of the Navy may ac-
quire or transfer such vessels and equipment for operation
by private salvage companies as the Secretary considers
necessary.
‘‘(b) AGREEMENT ON USE.—A private recipient of any
salvage vessel or gear shall agree in writing that such vessel
or gear will be used to support organized offshore salvage
facilities for as many years as the Secretary shall consider
appropriate.
‘‘§ 7363. Settlement of claims
‘‘The Secretary of the Navy, or the Secretary’s des-
ignee, may settle and receive payment for any claim by the
United States for salvage services rendered by the Depart-
ment of the Navy.
‘‘§ 7364. Disposition of receipts
‘‘Amounts received under this chapter shall be credited
to appropriations for maintaining naval salvage facilities.
However, any amount received in excess of naval salvage
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costs incurred by the Navy in that fiscal year shall be depos-
ited into the general fund of the Treasury.’’.
SEC. 806. AUTHORITY TO DELEGATE CONTRACTING AU-
THORITY.
(a) REPEAL OF DUPLICATIVE AUTHORITY AND RE-
STRICTION.—Section 2356 of title 10, United States Code,
is repealed.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 139 of title 10, United States Code,
is amended by striking out the item relating to section 2356.
SEC. 807. COORDINATION AND COMMUNICATION OF DE-
FENSE RESEARCH ACTIVITIES.
Section 2364 of title 10, United States Code, is amend-
ed—
(1) in subsection (b)(5), by striking out ‘‘mile-
stone O, milestone I, and milestone II’’ and inserting
in lieu thereof ‘‘acquisition program’’; and
(2) in subsection (c), by striking out paragraphs
(2), (3), and (4) and inserting in lieu thereof the fol-
lowing:
‘‘(2) The term ‘acquisition program decision’ has
the meaning prescribed by the Secretary of Defense in
regulations.’’.
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SEC. 808. PROCUREMENT OF ITEMS FOR EXPERIMENTAL OR
TEST PURPOSES.
Section 2373(b) of title 10, United States Code, is
amended by inserting ‘‘only’’ after ‘‘applies’’.
SEC. 809. QUALITY CONTROL IN PROCUREMENTS OF CRITI-
CAL AIRCRAFT AND SHIP SPARE PARTS.
(a) REPEAL.—Section 2383 of title 10, United States
Code, is repealed.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 141 of such title is amended by
striking out the item relating to section 2383.
SEC. 810. USE OF FUNDS FOR ACQUISITION OF DESIGNS,
PROCESSES, TECHNICAL DATA, AND COM-
PUTER SOFTWARE.
Section 2386(3) of title 10, United States Code, is
amended to read as follows:
‘‘(3) Design and process data, technical data,
and computer software.’’.
SEC. 811. INDEPENDENT COST ESTIMATES FOR MAJOR DE-
FENSE ACQUISITION PROGRAMS.
Section 2434(b)(1)(A) of title 10, United States Code,
is amended to read as follows:
‘‘(A) be prepared—
‘‘(i) by an office or other entity that is
not under the supervision, direction, or con-
trol of the military department, Defense
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Agency, or other component of the Depart-
ment of Defense that is directly responsible
for carrying out the development or acquisi-
tion of the program; or
‘‘(ii) if the decision authority for the
program has been delegated to an official of
a military department, Defense Agency, or
other component of the Department of De-
fense, by an office or other entity that is not
directly responsible for carrying out the de-
velopment or acquisition of the program;
and’’.
SEC. 812. FEES FOR CERTAIN TESTING SERVICES.
Section 2539b(c) of title 10, United States Code, is
amended by inserting ‘‘and indirect’’ after ‘‘recoup the di-
rect’’.
SEC. 813. CONSTRUCTION, REPAIR, ALTERATION, FURNISH-
ING, AND EQUIPPING OF NAVAL VESSELS.
(a) INAPPLICABILITY
OF CERTAIN LAWS.—Chapter
633 of title 10, United States Code, is amended by inserting
after section 7297 the following:
‘‘§ 7299. Contracts: applicability of Walsh-Healey Act
‘‘Each contract for the construction, alteration, fur-
nishing, or equipping of a naval vessel is subject to the
Walsh-Healey Act (41 U.S.C. 35 et seq.) unless the Presi-
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dent determines that this requirement is not in the interest
of national defense.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by inserting after
the item relating to section 7297 the following:
‘‘7299. Contracts: applicability of Walsh-Healey Act.’’.
SEC. 814. CIVIL RESERVE AIR FLEET.
Section 9512 of title 10, United States Code, is amend-
ed by striking out ‘‘full Civil Reserve Air Fleet’’ both places
it appears in subsections (b)(2) and (e) and inserting in
lieu thereof ‘‘Civil Reserve Air Fleet’’.
SEC. 815. COST AND PRICING DATA.
(a) 
ARMED
SERVICES
PROCUREMENTS.—Section
2306a(d)(2)(A)(i) of title 10, United States Code, is amend-
ed by striking out ‘‘and the procurement is not covered by
an exception in subsection (b),’’ and inserting in lieu there-
of ‘‘and the offeror or contractor requests to be exempted
from the requirement for submission of cost or pricing data
pursuant to this subsection,’’.
(b) 
CIVILIAN
AGENCY
PROCUREMENTS.—Section
304A(d)(2)(A)(i) of the Federal Property and Administra-
tive Services Act of 1949 (41 U.S.C. 254b(d)(2)(A)(i)) is
amended by striking out ‘‘and the procurement is not cov-
ered by an exception in subsection (b),’’ and inserting in
lieu thereof ‘‘and the offeror or contractor requests to be ex-
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empted from the requirement for submission of cost or pric-
ing data pursuant to this subsection,’’.
SEC. 816. PROCUREMENT NOTICE TECHNICAL AMEND-
MENTS.
Section 18(c)(1)(E) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 416(c)(1)(E)) is amended by
inserting after ‘‘requirements contract’’ the following: ‘‘, a
task order contract, or a delivery order contract’’.
SEC. 817. REPEAL OF DUPLICATIVE AUTHORITY FOR SIM-
PLIFIED ACQUISITION PURCHASES.
Section 31 of the Office of Federal Procurement Policy
Act (41 U.S.C. 427) is amended—
(1) by striking out subsections (a), (b), and (c);
(2) by redesignating subsections (d), (e), and (f)
as (a), (b), and (c), respectively;
(3) in subsection (b), as so redesignated, by strik-
ing out ‘‘provided in the Federal Acquisition Regula-
tion pursuant to this section’’ each place it appears
and inserting in lieu thereof ‘‘contained in the Fed-
eral Acquisition Regulation’’; and
(4) by adding at the end the following:
‘‘(d) PROCEDURES DEFINED.—The simplified acquisi-
tion procedures referred to in this section are the simplified
acquisition procedures that are provided in the Federal Ac-
quisition Regulation pursuant to section 2304(g) of title 10,
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United States Code, and section 303(g) of the Federal Prop-
erty and Administrative Services Act of 1949 (41 U.S.C.
253(g)).’’.
SEC. 
818. 
MICRO-PURCHASES 
WITHOUT 
COMPETITIVE
QUOTATIONS.
Section 32(d) of the Office of Federal Procurement Pol-
icy Act (41 U.S.C. 428) is amended by striking out ‘‘the
contracting officer’’ and inserting in lieu thereof ‘‘an em-
ployee of an executive agency or a member of the Armed
Forces of the United States authorized to do so’’.
SEC. 819. RESTRICTION ON REIMBURSEMENT OF COSTS.
(a) None of the funds authorized to be appropriated
in this Act for fiscal year 1996 may be obligated for pay-
ment on new contracts on which allowable costs charged to
the Government include payments for individual compensa-
tion (including bonuses and other incentives) at a rate in
excess of $250,000.
(b) It is the sense of the Senate that the Congress
should consider extending the restriction described in sec-
tion (a) permanently.
Subtitle B—Other Matters
SEC. 821. PROCUREMENT TECHNICAL ASSISTANCE PRO-
GRAMS.
(a) FUNDING.—Of the amount authorized to be appro-
priated under section 301(5), $12,000,000 shall be available
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for carrying out the provisions of chapter 142 of title 10,
United States Code.
(b) SPECIFIC PROGRAMS.—Of the amounts made
available pursuant to subsection (a), $600,000 shall be
available for fiscal year 1996 for the purpose of carrying
out programs sponsored by eligible entities referred to in
subparagraph (D) of section 2411(1) of title 10, United
States Code, that provide procurement technical assistance
in distressed areas referred to in subparagraph (B) of sec-
tion 2411(2) of such title. If there is an insufficient number
of satisfactory proposals for cooperative agreements in such
distressed areas to allow effective use of the funds made
available in accordance with this subsection in such areas,
the funds shall be allocated among the Defense Contract Ad-
ministration Services regions in accordance with section
2415 of such title.
SEC. 822. TREATMENT OF DEPARTMENT OF DEFENSE
CABLE 
TELEVISION 
FRANCHISE 
AGREE-
MENTS.
For purposes of part 49 of the Federal Acquisition
Regulation, a cable television franchise agreement of the De-
partment of Defense shall be considered a contract for tele-
communications services.
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SEC. 823. PRESERVATION OF AMMUNITION INDUSTRIAL
BASE.
(a) REVIEW
OF AMMUNITION PROCUREMENT
AND
MANAGEMENT PROGRAMS.—(1) Not later than 30 days
after the date of the enactment of this Act, the Secretary
of Defense shall commence a review of the ammunition pro-
curement and management programs of the Department of
Defense, including the planning for, budgeting for, adminis-
tration, and carrying out of such programs.
(2) The review under paragraph (1) shall include an
assessment of the following matters:
(A) The practicability and desirability of using
centralized procurement practices to procure all am-
munition required by the Armed Forces.
(B) The capability of the ammunition produc-
tion facilities of the United States to meet the ammu-
nition requirements of the Armed Forces.
(C) The practicability and desirability of
privatizing such ammunition production facilities.
(D) The practicability and desirability of using
integrated budget planning among the Armed Forces
for the procurement of ammunition.
(E) The practicability and desirability of estab-
lishing an advocate within the Department of Defense
for ammunition industrial base matters who shall be
responsible for—
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(i) establishing the quantity and price of
ammunition procured by the Armed Forces; and
(ii) establishing and implementing policy to
ensure the continuing viability of the ammuni-
tion industrial base in the United States.
(F) The practicability and desirability of pro-
viding information on the ammunition procurement
practices of the Armed Forces to Congress through a
single source.
(b) REPORT.—Not later than April 1, 1996, the Sec-
retary shall submit to the congressional defense committees
a report containing the following:
(1) The results of the review carried out under
subsection (a).
(2) A discussion of the methodologies used in
carrying out the review.
(3) An assessment of various methods of ensuring
the continuing viability of the ammunition industrial
base of the United States.
(4) Recommendations of means (including legis-
lation) of implementing such methods in order to en-
sure such viability.
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TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND
MANAGEMENT
SEC. 901. REDESIGNATION OF THE POSITION OF ASSIST-
ANT TO THE SECRETARY OF DEFENSE FOR
ATOMIC ENERGY.
(a) IN GENERAL.—(1) Section 142 of title 10, United
States Code, is amended—
(A) by striking out the section heading and in-
serting in lieu thereof the following:
‘‘§ 142. Assistant to the Secretary of Defense for Nu-
clear and Chemical and Biological De-
fense Programs’’;
(B) in subsection (a), by striking out ‘‘Assistant
to the Secretary of Defense for Atomic Energy’’ and
inserting in lieu thereof ‘‘Assistant to the Secretary of
Defense for Nuclear and Chemical and Biological De-
fense Programs’’; and
(C) by striking out subsection (b) and inserting
in lieu thereof the following:
‘‘(b) The Assistant to the Secretary shall—
‘‘(1) advise the Secretary of Defense on nuclear
energy, nuclear weapons, and chemical and biological
defense;
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‘‘(2) serve as the Staff Director of the Nuclear
Weapons Council established by section 179 of this
title; and
‘‘(3) perform such additional duties as the Sec-
retary may prescribe.’’.
(2) The table of sections at the beginning of chapter
4 of such title is amended by striking out the item relating
to section 142 and inserting in lieu thereof the following:
‘‘142. Assistant to the Secretary of Defense for Nuclear and Chemical and Biologi-
cal Defense Programs.’’.
(b) 
CONFORMING
AMENDMENTS.—(1) 
Section
179(c)(2) of title 10, United States Code, is amended by
striking out ‘‘The Assistant to the Secretary of Defense for
Atomic Energy’’ and inserting in lieu thereof ‘‘The Assist-
ant to the Secretary of Defense for Nuclear and Chemical
and Biological Defense Programs.’’.
(2) Section 5316 of title 5, United States Code, is
amended by striking out ‘‘The Assistant to the Secretary
of Defense for Atomic Energy, Department of Defense.’’ and
inserting in lieu thereof the following:
‘‘Assistant to the Secretary of Defense for Nu-
clear and Chemical and Biological Defense Programs,
Department of Defense.’’.
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TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
SEC. 1001. TRANSFER AUTHORITY.
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—(1)
Upon determination by the Secretary of Defense that such
action is necessary in the national interest, the Secretary
may transfer amounts of authorizations made available to
the Department of Defense in this division for fiscal year
1996 between any such authorizations for that fiscal year
(or any subdivisions thereof). Amounts of authorizations 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 sec-
tion 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 Congress.
(c) EFFECT ON AUTHORIZATION AMOUNTS.—A trans-
fer made from one account to another under the authority
of this section shall be deemed to increase the amount au-
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thorized for the account to which the amount is transferred
by an amount equal to the amount transferred.
(d) NOTICE
TO
CONGRESS.—The Secretary shall
promptly notify Congress of each transfer made under sub-
section (a).
SEC. 1002. DISBURSING AND CERTIFYING OFFICIALS.
(a) DISBURSING OFFICIALS.—(1) Section 3321(c) of
title 31, United States Code, is amended by striking out
paragraph (2) and inserting in lieu thereof the following:
‘‘(2) The Department of Defense.’’.
(2) Section 2773 of title 10, United States Code, is
amended—
(A) in subsection (a)—
(i) by striking out ‘‘With the approval of
the Secretary of a military department when the
Secretary considers it necessary, a disbursing of-
ficial of the military department’’ and inserting
in lieu thereof ‘‘Subject to paragraph (3), a dis-
bursing official of the Department of Defense’’;
and
(ii) by adding at the end the following new
paragraph:
‘‘(3) A disbursing official may make a designation
under paragraph (1) only with the approval of the Sec-
retary of Defense or, in the case of a disbursing official of
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a military department, the Secretary of that military de-
partment.’’; and
(B) in subsection (b)(1), by striking out ‘‘any
military department’’ and inserting in lieu thereof
‘‘the Department of Defense’’.
(b) DESIGNATION
OF MEMBERS
OF
THE ARMED
FORCES TO HAVE AUTHORITY TO CERTIFY VOUCHERS.—
Section 3325(b) of title 31, United States Code, is amended
to read as follows:
‘‘(b) In addition to officers and employees referred to
in subsection (a)(1)(B) of this section as having authoriza-
tion to certify vouchers, members of the armed forces under
the jurisdiction of the Secretary of Defense may certify
vouchers when authorized, in writing, by the Secretary to
do so.’’.
(c) CONFORMING AMENDMENTS.—(1) Section 1012 of
title 37, United States Code, is amended by striking out
‘‘Secretary concerned’’ both places it appears and inserting
in lieu thereof ‘‘Secretary of Defense’’.
(2) Section 1007(a) of title 37, United States Code,
is amended by striking out ‘‘Secretary concerned’’ and in-
serting in lieu thereof ‘‘Secretary of Defense, or upon the
denial of relief of an officer pursuant to section 3527 of
title 31’’.
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(3)(A) Section 7863 of title 10, United States Code,
is amended—
(i) in the first sentence, by striking out ‘‘dis-
bursements of public moneys or’’ and ‘‘the money was
paid or’’; and
(ii) in the second sentence, by striking out ‘‘dis-
bursement or’’.
(B)(i) The heading of such section is amended to read
as follows:
‘‘§ 7863. Disposal of public stores by order of com-
manding officer’’.
(ii) The item relating to such section in the table of
sections at the beginning of chapter 661 of such title is
amended to read as follows:
‘‘7863. Disposal of public stores by order of commanding officer.’’.
(4) Section 3527(b)(1) of title 31, United States Code,
is amended—
(A) by striking out ‘‘a disbursing official of the
armed forces’’ and inserting in lieu thereof ‘‘an offi-
cial of the armed forces referred to in subsection (a)’’;
(B) by striking out ‘‘records,’’ and inserting in
lieu thereof ‘‘records, or a payment described in sec-
tion 3528(a)(4)(A) of this title,’’;
(C) by redesignating subparagraphs (A), (B),
and (C) as clauses (i), (ii), and (iii), and realigning
such clauses four ems from the left margin;
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(D) by inserting before clause (i), as redesignated
by subparagraph (C), the following:
‘‘(A) in the case of a physical loss or defi-
ciency—’’;
(E) in clause (iii), as redesignated by subpara-
graph (C), by striking out the period at the end and
inserting in lieu thereof ‘‘; or’’; and
(F) by adding at the end the following:
‘‘(B) in the case of a payment described in sec-
tion 3528(a)(4)(A) of this title, the Secretary of De-
fense or the appropriate Secretary of the military de-
partment of the Department of Defense, after taking
a diligent collection action, finds that the criteria of
section 3528(b)(1) of this title are satisfied.’’.
SEC. 1003. DEFENSE MODERNIZATION ACCOUNT.
(a) ESTABLISHMENT AND USE.—(1) Chapter 131 of
title 10, United States Code, is amended by adding at the
end the following:
‘‘§ 2221. Defense Modernization Account
‘‘(a) ESTABLISHMENT.—There is established in the
Treasury a special account to be known as the ‘Defense
Modernization Account’.
‘‘(b) CREDITS TO ACCOUNT.—(1) Under regulations
prescribed by the Secretary of Defense, and upon a deter-
mination by the Secretary concerned of the availability and
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source of excess funds as described in subparagraph (A) or
(B), the Secretary may transfer to the Defense Moderniza-
tion Account during any fiscal year—
‘‘(A) any amount of unexpired funds available to
the Secretary for procurements that, as a result of
economies, efficiencies, and other savings achieved in
the procurements, are excess to the funding require-
ments of the procurements; and
‘‘(B) any amount of unexpired funds available to
the Secretary for support of installations and facili-
ties that, as a result of economies, efficiencies, and
other savings, are excess to the funding requirements
for support of installations and facilities.
‘‘(2) Funds referred to in paragraph (1) may not be
transferred to the Defense Modernization Account by a Sec-
retary concerned if—
‘‘(A) the funds are necessary for programs,
projects, and activities that, as determined by the Sec-
retary, have a higher priority than the purposes for
which the funds would be available if transferred to
that account; or
‘‘(B) the balance of funds in the account, after
transfer of funds to the account would exceed
$1,000,000,000.
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‘‘(3) Amounts credited to the Defense Modernization
Account shall remain available for transfer until the end
of the third fiscal year that follows the fiscal year in which
the amounts are credited to the account.
‘‘(4) The period of availability of funds for expenditure
provided for in sections 1551 and 1552 of title 31 shall not
be extended by transfer into the Defense Modernization Ac-
count.
‘‘(c) ATTRIBUTION OF FUNDS.—The funds transferred
to the Defense Modernization Account by a military depart-
ment, Defense Agency, or other element of the Department
of Defense shall be available in accordance with subsections
(f) and (g) only for that military department, Defense
Agency, or element.
‘‘(d) USE OF FUNDS.—Funds available from the De-
fense Modernization Account pursuant to subsection (f) or
(g) may be used only for the following purposes:
‘‘(1) For increasing, subject to subsection (e), the
quantity of items and services procured under a pro-
curement program in order to achieve a more efficient
production or delivery rate.
‘‘(2) For research, development, test and evalua-
tion and procurement necessary for modernization of
an existing system or of a system being procured
under an ongoing procurement program.
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‘‘(e) LIMITATIONS.—(1) Funds from the Defense Mod-
ernization Account may not be used to increase the quantity
of an item or services procured under a particular procure-
ment program to the extent that doing so would—
‘‘(A) result in procurement of a total quantity of
items or services in excess of—
‘‘(i) a specific limitation provided in law
on the quantity of the items or services that may
be procured; or
‘‘(ii) the requirement for the items or serv-
ices as approved by the Joint Requirements
Oversight Council and reported to Congress by
the Secretary of Defense; or
‘‘(B) result in an obligation or expenditure of
funds in excess of a specific limitation provided in
law on the amount that may be obligated or ex-
pended, respectively, for the procurement program.
‘‘(2) Funds from the Defense Modernization Account
may not be used for a purpose or program for which Con-
gress has not authorized appropriations.
‘‘(3) Funds may not be transferred from the Defense
Modernization Account in any year for the purpose of—
‘‘(A) making any expenditure for which there is
no corresponding obligation; or
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‘‘(B) making any expenditure that would satisfy
an unliquidated or unrecorded obligation arising in
a prior fiscal year.
‘‘(f) TRANSFER OF FUNDS.—(1) Funds in the Defense
Modernization Account may be transferred in any fiscal
year to appropriations available for use for purposes set
forth in subsection (d).
‘‘(2) Before funds in the Defense Modernization Ac-
count are transferred under paragraph (1), the Secretary
concerned shall transmit to the congressional defense com-
mittees a notification of the amount and purpose of the pro-
posed transfer.
‘‘(3) The total amount of the transfers from the Defense
Modernization Account may not exceed $500,000,000 in
any fiscal year.
‘‘(g) AVAILABILITY OF FUNDS FOR APPROPRIATION.—
Funds in the Defense Modernization Account may be appro-
priated for purposes set forth in subsection (d) to the extent
provided in Acts authorizing appropriations for the De-
partment of the Defense.
‘‘(h) SECRETARY TO ACT THROUGH COMPTROLLER.—
In exercising authority under this section, the Secretary of
Defense shall act through the Under Secretary of Defense
(Comptroller), who shall be authorized to implement this
section through the issuance of any necessary regulations,
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policies, and procedures after consultation with the General
Counsel and Inspector General of the Department of De-
fense.
‘‘(i) QUARTERLY REPORT.—Not later than 15 days
after the end of each calendar quarter, the Secretary of De-
fense shall submit to the appropriate committees of Congress
a report setting forth the amount and source of each credit
to the Defense Modernization Account during the quarter
and the amount and purpose of each transfer from the ac-
count during the quarter.
‘‘(j) DEFINITIONS.—In this section:
‘‘(1) The term ‘Secretary concerned’ includes the
Secretary of Defense.
‘‘(2) The term ‘unexpired funds’ means funds ap-
propriated for a definite period that remain available
for obligation.
‘‘(3) The term ‘congressional defense committees’
means—
‘‘(A) the Committees on Armed Services and
Appropriations of the Senate; and
‘‘(B) the Committees on National Security
and Appropriations of the House of Representa-
tives.
‘‘(4) The term ‘appropriate committees of Con-
gress’ means—
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‘‘(A) the congressional defense committees;
‘‘(B) the Committee on Governmental Af-
fairs of the Senate; and
‘‘(C) the Committee on Government Reform
and Oversight of the House of Representatives.
‘‘(k) INAPPLICABILITY TO COAST GUARD.—This sec-
tion does not apply to the Coast Guard when it is not oper-
ating as a service in the Navy.’’.
(2) The table of sections at the beginning of chapter
131 of such title is amended by adding at the end the follow-
ing:
‘‘2221. Defense Modernization Account.’’.
(b) EFFECTIVE DATE.—Section 2221 of title 10, Unit-
ed States Code (as added by subsection (a)), shall take effect
on October 1, 1995, and shall apply only to funds appro-
priated for fiscal years beginning on or after that date.
(c) EXPIRATION OF AUTHORITY AND ACCOUNT.—(1)
The authority under section 2221(b) of title 10, United
States Code (as added by subsection (a)), to transfer funds
into the Defense Modernization Account shall terminate on
October 1, 2003.
(2) Three years after the termination of transfer au-
thority under paragraph (1), the Defense Modernization Ac-
count shall be closed and the remaining balance in the ac-
count shall be canceled and thereafter shall not be available
for any purpose.
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(3)(A) The Comptroller General of the United States
shall conduct two reviews of the administration of the De-
fense Modernization Account. In each review, the Comptrol-
ler General shall assess the operations and benefits of the
account.
(B) Not later than March 1, 2000, the Comptroller
General shall—
(i) complete the first review; and
(ii) submit to the appropriate committees of
Congress an initial report on the administration and
benefits of the Defense Modernization Account.
(C) Not later than March 1, 2003, the Comptroller
General shall—
(i) complete the second review; and
(ii) submit to the appropriate committees of
Congress a final report on the administration and
benefits of the Defense Modernization Account.
(D) Each report shall include any recommended legis-
lation regarding the account that the Comptroller General
considers appropriate.
(E) In this paragraph, the term ‘‘appropriate commit-
tees of Congress’’ has the meaning given such term in sec-
tion 2221(j)(4) of title 10, United States Code, as added
by subsection (a).
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SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUP-
PLEMENTAL APPROPRIATIONS FOR FISCAL
YEAR 1995.
(a) ADJUSTMENT TO PREVIOUS AUTHORIZATIONS.—
Amounts authorized to be appropriated to the Department
of Defense for fiscal year 1995 in the National Defense Au-
thorization Act for Fiscal Year 1995 (Public Law 103–337)
are hereby adjusted, with respect to any such authorized
amount, by the amount by which appropriations pursuant
to such authorization were increased (by a supplemental
appropriation) or decreased (by a rescission), or both, in
title I of the Emergency Supplemental Appropriations and
Rescissions for the Department of Defense to Preserve and
Enhance Military Readiness Act of 1995 (Public Law 104–
6).
(b) NEW AUTHORIZATION.—The appropriation pro-
vided in section 104 of such Act is hereby authorized.
SEC. 1005. LIMITATION ON USE OF AUTHORITY TO PAY FOR
EMERGENCY 
AND 
EXTRAORDINARY 
EX-
PENSES.
Section 127 of title 10, United States Code, is amend-
ed—
(1) by redesignating subsection (c) as subsection
(d); and
(2) by inserting after subsection (b) the following
new subsection (c):
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‘‘(c)(1) Funds may not be obligated or expended in an
amount in excess of $500,000 under the authority of sub-
section (a) or (b) until the Secretary of Defense has notified
the Committees on Armed Services and Appropriations of
the Senate and the Committees on National Security and
Appropriations of the House of Representatives of the intent
to obligate or expend the funds, and—
‘‘(A) in the case of an obligation or expenditure
in excess of $1,000,000, 15 days have elapsed since the
date of the notification; or
‘‘(B) in the case of an obligation or expenditure
in excess of $500,000, but not in excess of $1,000,000,
5 days have elapsed since the date of the notification.
‘‘(2) Subparagraph (A) or (B) of paragraph (1) shall
not apply to an obligation or expenditure of funds otherwise
covered by such subparagraph if the Secretary of Defense
determines that the national security objectives of the Unit-
ed States will be compromised by the application of the sub-
paragraph to the obligation or expenditure. If the Secretary
makes a determination with respect to an expenditure
under the preceding sentence, the Secretary shall notify the
committees referred to in paragraph (1) not later than the
later of—
‘‘(A) 30 days after the date of the expenditure;
or
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‘‘(B) the date on which the activity for which the
expenditure is made is completed.
‘‘(3) A notification under this subsection shall include
the amount to be obligated or expended, as the case may
be, and the purpose of the obligation or expenditure.’’.
SEC. 
1006. TRANSFER 
AUTHORITY 
REGARDING 
FUNDS
AVAILABLE FOR FOREIGN CURRENCY FLUC-
TUATIONS.
(a) TRANSFERS TO MILITARY PERSONNEL ACCOUNTS
AUTHORIZED.—Section 2779 of title 10, United States
Code, is amended by adding at the end the following:
‘‘(c) TRANSFERS
TO
MILITARY
PERSONNEL
AC-
COUNTS.—(1) The Secretary of Defense may transfer funds
to military personnel appropriations for a fiscal year out
of funds available to the Department of Defense for that
fiscal year under the appropriation ‘Foreign Currency
Fluctuations, Defense’.
‘‘(2) This subsection applies with respect to appropria-
tions for fiscal years beginning after September 30, 1995.’’.
(b) REVISION AND CODIFICATION OF AUTHORITY FOR
TRANSFERS TO FOREIGN CURRENCY FLUCTUATIONS AC-
COUNT.—Section 2779 of such title, as amended by sub-
section (a), is further amended by adding at the end the
following:
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‘‘(d) TRANSFERS TO FOREIGN CURRENCY FLUCTUA-
TIONS ACCOUNT.—(1) The Secretary of Defense may trans-
fer to the appropriation ‘Foreign Currency Fluctuations,
Defense’ unobligated amounts of funds appropriated for op-
eration and maintenance and unobligated amounts of funds
appropriated for military personnel.
‘‘(2) Any transfer from an appropriation under para-
graph (1) shall be made not later than the end of the second
fiscal year following the fiscal year for which the appropria-
tion is provided.
‘‘(3) Any transfer made pursuant to the authority pro-
vided in this subsection shall be limited so that the amount
in the appropriation ‘Foreign Currency Fluctuations, De-
fense’ does not exceed $970,000,000 at the time such transfer
is made.
‘‘(4) This subsection applies with respect to appropria-
tions for fiscal years beginning after September 30, 1995.’’.
(c) CONDITIONS OF AVAILABILITY FOR TRANSFERRED
FUNDS.—Section 2779 of such title, as amended by sub-
section (b), is further amended by adding at the end the
following:
‘‘(e) CONDITIONS OF AVAILABILITY FOR TRANSFERRED
FUNDS.—Amounts transferred under subsection (c) or (d)
shall be merged with and be available for the same purposes
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and for the same period as the appropriations to which
transferred.’’.
(d) CONFORMING AND TECHNICAL AMENDMENTS.—(1)
Section 767A of Public Law 96–527 (94 Stat. 3093) is re-
pealed.
(2) Section 791 of the Department of Defense Appro-
priation Act, 1983 (enacted in section 101(c) of Public Law
97–377; 96 Stat. 1865) is repealed.
(3) Section 2779 of title 10, United States Code, is
amended—
(A) in subsection (a), by striking out ‘‘(a)(1)’’
and inserting in lieu thereof ‘‘(a) TRANSFERS BACK
TO FOREIGN CURRENCY FLUCTUATIONS APPROPRIA-
TION.—(1) ’’; and
(B) in subsection (b), by striking out ‘‘(b)(1)’’
and inserting in lieu thereof ‘‘(b) FUNDING
FOR
LOSSES
IN MILITARY CONSTRUCTION
AND FAMILY
HOUSING.—(1)’’.
SEC. 1007. REPORT ON BUDGET SUBMISSION REGARDING
RESERVE COMPONENTS.
(a) SPECIAL REPORT.—The Secretary of Defense shall
submit to the congressional defense committees, at the same
time that the President submits the budget for fiscal year
1997 under section 1105(a) of title 31, United States Code,
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a special report on funding for the reserve components of
the Armed Forces.
(b) CONTENT.—The report shall contain the following:
(1) The actions taken by the Department of De-
fense to enhance the Army National Guard, the Air
National Guard, and each of the other reserve compo-
nents.
(2) A separate listing, with respect to the Army
National Guard, the Air National Guard, and each of
the other reserve components, of each of the following:
(A) The specific amount requested for each
major weapon system.
(B) The specific amount requested for each
item of equipment.
(C) The specific amount requested for each
military construction project, together with the
location of each such project.
(3) If the total amount reported in accordance
with paragraph (2) is less than $1,080,000,000, an
additional separate listing described in paragraph (2)
in a total amount equal to $1,080,000,000.
Subtitle B—Naval Vessels
SEC. 1011. IOWA CLASS BATTLESHIPS.
(a) RETURN TO NAVAL VESSEL REGISTER.—The Sec-
retary of the Navy shall list on the Naval Vessel Register,
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and maintain on such register, at least two of the Iowa
class battleships that were stricken from the register in Feb-
ruary 1995.
(b) SELECTION OF SHIPS.—The Secretary shall select
for listing on the register under subsection (a) the Iowa
class battleships that are in the best material condition. In
determining which battleships are in the best material con-
dition, the Secretary shall take into consideration the find-
ings of the Board of Inspection and Survey of the Navy,
the extent to which each battleship has been modernized
during the last period of active service of the battleship, and
the military utility of each battleship after the moderniza-
tion.
(c) SUPPORT.—The Secretary shall retain the existing
logistical support necessary for support of at least two oper-
ational Iowa class battleships in active service, including
technical manuals, repair and replacement parts, and ord-
nance.
(d) REPLACEMENT CAPABILITY.—The requirements of
this section shall cease to be effective 60 days after the Sec-
retary certifies in writing to the Committee on Armed Serv-
ices of the Senate and the Committee on National Security
of the House of Representatives that the Navy has within
the fleet an operational surface fire support capability that
equals or exceeds the fire support capability that the Iowa
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class battleships listed on the Naval Vessel Register pursu-
ant to subsection (a) would, if in active service, be able to
provide for Marine Corps amphibious assaults and oper-
ations ashore.
SEC. 1012. TRANSFER OF NAVAL VESSELS TO CERTAIN FOR-
EIGN COUNTRIES.
(a) AUTHORITY.—The Secretary of the Navy is author-
ized to transfer—
(1) to the Government of Bahrain the Oliver
Hazard Perry class guided missile frigate Jack Wil-
liams (FFG 24);
(2) to the Government of Egypt the Oliver Haz-
ard Perry class frigates Duncan (FFG 10) and
Copeland (FFG 25);
(3) to the Government of Oman the Oliver Haz-
ard Perry class guided missile frigate Mahlon S. Tis-
dale (FFG 27);
(4) to the Government of Turkey the Oliver Haz-
ard Perry class frigates Clifton Sprague (FFG 16),
Antrim (FFG 20), and Flatley (FFG 21); and
(5) to the Government of the United Arab Emir-
ates the Oliver Hazard Perry class guided missile
frigate Gallery (FFG 26).
(b) FORMS OF TRANSFER.—(1) A transfer under para-
graph (1), (2), (3), or (4) of subsection (a) shall be on a
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grant basis under section 516 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2321j).
(2) A transfer under paragraph (5) of subsection (a)
shall be on a lease basis under section 61 of the Arms Ex-
port Control Act (22 U.S.C. 2796).
(c) COSTS OF TRANSFERS.—Any expense incurred by
the United States in connection with a transfer authorized
by subsection (a) shall be charged to the recipient.
(d) EXPIRATION OF AUTHORITY.—The authority to
transfer a vessel under subsection (a) shall expire at the
end of the 2-year period beginning on the date of the enact-
ment of this Act, except that a lease entered into during
that period under subsection (b)(2) may be renewed.
SEC. 1013. NAMING AMPHIBIOUS SHIPS.
(a) FINDINGS.—The Senate finds that:
(1) This year is the fiftieth anniversary of the
battle of Iwo Jima, one of the great victories in all
of the Marine Corps’ illustrious history.
(2) The Navy has recently retired the ship that
honored that battle, the U.S.S. IWO JIMA (LPH–2),
the first ship in a class of amphibious assault ships.
(3) This Act authorizes the LHD–7, the final
ship of the Wasp class of amphibious assault ships
that will replace the Iwo Jima class of ships.
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(4) The Navy is planning to start building a
new class of amphibious transport docks, now called
the LPD–17 class. This Act also authorizes funds that
will lead to procurement of these vessels.
(5) There has been some confusion in the ration-
ale behind naming new naval vessels with traditional
naming conventions frequently violated.
(6) Although there have been good and sufficient
reasons to depart from naming conventions in the
past, the rationale for such departures has not always
been clear.
(b) SENSE OF THE SENATE.—In light of these find-
ings, expressed in subsection (a), it is the sense of the Senate
that the Secretary of the Navy should:
(1) Name the LHD–7 the U.S.S. IWO JIMA.
(2) Name the LPD–17 and all future ships of the
LPD–17 class after famous Marine Corps battles or
famous Marine Corps heroes.
Subtitle C—Counter-Drug Activities
SEC. 1021. REVISION AND CLARIFICATION OF AUTHORITY
FOR FEDERAL SUPPORT OF DRUG INTERDIC-
TION AND COUNTER-DRUG ACTIVITIES OF
THE NATIONAL GUARD.
(a) FUNDING ASSISTANCE.—Subsection (a) of section
112 of title 32, United States Code, is amended—
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(1) by striking out ‘‘submits a plan to the Sec-
retary under subsection (b)’’ in the matter above
paragraph (1) and inserting in lieu thereof ‘‘submits
to the Secretary a State drug interdiction and
counter-drug activities plan satisfying the require-
ments of subsection (c)’’;
(2) by redesignating paragraph (2) as para-
graph (3); and
(3) by striking out paragraph (1) and inserting
in lieu thereof the following:
‘‘(1) the pay, allowances, clothing, subsistence,
gratuities, travel, and related expenses, as authorized
by State law, of personnel of the National Guard of
that State used, while not in Federal service, for the
purpose of drug interdiction and counter-drug activi-
ties;
‘‘(2) the operation and maintenance of the equip-
ment and facilities of the National Guard of that
State used for the purpose of drug interdiction and
counter-drug activities; and’’.
(b) USE OF PERSONNEL PERFORMING FULL-TIME NA-
TIONAL GUARD DUTY.—Section 112 of such title is amend-
ed—
(1) by striking out subsection (e);
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(2) by redesignating subsections (b), (c), (d), and
(f) as subsections (c), (d), (f), and (g), respectively;
and
(3) by inserting after subsection (a) the following
new subsection (b):
‘‘(b) USE OF PERSONNEL PERFORMING FULL TIME
NATIONAL GUARD DUTY.—(1) Subject to subsection (e),
personnel of the National Guard of a State may be ordered
to perform full-time National Guard duty under section
502(f) of this title for the purpose of carrying out drug
interdiction and counter-drug activities.
‘‘(2) Under regulations prescribed by the Secretary of
Defense, the Governor of a State may, in accordance with
the State drug interdiction and counter-drug activities plan
referred to in subsection (c), request that personnel of the
National Guard of the State be ordered to perform full-time
National Guard duty under section 502(f) of this title for
the purpose of carrying out drug interdiction and counter-
drug activities.’’.
(c) STATE PLAN.—Subsection (c) of such section, as
redesignated by subsection (b)(2), is amended—
(1) in the matter above paragraph (1), by strik-
ing out ‘‘A plan’’ and inserting in lieu thereof ‘‘A
State drug interdiction and counter-drug activities
plan’’;
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(2) by striking out ‘‘and’’ at the end of para-
graph (2); and
(3) in paragraph (3)—
(A) by striking out ‘‘annual training’’ and
inserting in lieu thereof ‘‘training’’;
(B) by striking out the period at the end
and inserting in lieu thereof a semicolon; and
(C) by adding at the end the following:
‘‘(4) include a certification by the Attorney Gen-
eral of the State (or, in the case of a State with no
position of Attorney General, a civilian official of the
State equivalent to a State attorney general) that the
use of the National Guard of the State for the activi-
ties proposed under the plan is authorized by, and is
consistent with, State law; and
‘‘(5) certify that the Governor of the State or a
civilian law enforcement official of the State des-
ignated by the Governor has determined that any ac-
tivities included in the plan that are carried out in
conjunction with Federal law enforcement agencies
serve a State law enforcement purpose.’’.
(d) EXAMINATION OF STATE PLAN.—Subsection (d) of
such section, as redesignated by subsection (b)(2), is amend-
ed—
(1) in paragraph (1)—
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(A) by inserting after ‘‘Before funds are
provided to the Governor of a State under this
section’’ the following: ‘‘and before members of
the National Guard of that State are ordered to
full-time National Guard duty as authorized in
subsection (b)(1)’’; and
(B) by striking out ‘‘subsection (b)’’ and in-
serting in lieu thereof ‘‘subsection (c)’’; and
(2) in paragraph (3)—
(A) by striking out ‘‘subsection (b)’’ in sub-
paragraph (A) and inserting in lieu thereof
‘‘subsection (c)’’; and
(B) by striking out subparagraph (B) and
inserting in lieu thereof the following:
‘‘(B) pursuant to the plan submitted for a pre-
vious fiscal year, funds were provided to the State in
accordance with subsection (a) or personnel of the Na-
tional Guard of the State were ordered to perform
full-time National Guard duty in accordance with
subsection (b).’’.
(e) END STRENGTH LIMITATION.—Such section is
amended by inserting after subsection (d), as redesignated
by subsection (b)(2), the following new subsection (e):
‘‘(e) END STRENGTH LIMITATION.—(1) Except as pro-
vided in paragraph (2), at the end of a fiscal year there
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may not be more than 4000 members of the National
Guard—
‘‘(A) on full-time National Guard duty under
section 502(f) of this title to perform drug interdic-
tion or counter-drug activities pursuant to an order
to duty for a period of more than 180 days; or
‘‘(B) on duty under State authority to perform
drug interdiction or counter-drug activities pursuant
to an order to duty for a period of more than 180
days with State pay and allowances being reimbursed
with funds provided under subsection (a)(1).
‘‘(2) The Secretary of Defense may increase the end
strength authorized under paragraph (1) by not more than
20 percent for any fiscal year if the Secretary determines
that such an increase is necessary in the national security
interests of the United States.’’.
(f) DEFINITIONS.—Subsection (g) of such section, as
redesignated by subsection (b)(2), is amended by striking
out paragraph (1) and inserting in lieu thereof the follow-
ing:
‘‘(1) The term ‘drug interdiction and counter-
drug activities’, with respect to the National Guard of
a State, means the use of National Guard personnel
in drug interdiction and counter-drug law enforce-
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ment activities authorized by the law of the State and
requested by the Governor of the State.’’.
SEC. 1022. NATIONAL DRUG INTELLIGENCE CENTER.
(a) LIMITATION ON USE OF FUNDS.—Except as pro-
vided in subsection (b), funds appropriated or otherwise
made available for the Department of Defense pursuant to
this or any other Act may not be obligated or expended for
the National Drug Intelligence Center, Johnstown, Penn-
sylvania.
(b) EXCEPTION.—If the Attorney General operates the
National Drug Intelligence Center using funds available for
the Department of Justice, the Secretary of Defense may
continue to provide Department of Defense intelligence per-
sonnel to support intelligence activities at the Center. The
number of such personnel providing support to the Center
after the date of the enactment of this Act may not exceed
the number of the Department of Defense intelligence per-
sonnel who are supporting intelligence activities at the Cen-
ter on the day before such date.
SEC. 1023. ASSISTANCE TO CUSTOMS SERVICE.
(a) NONINTRUSIVE INSPECTION SYSTEMS.—The Sec-
retary of Defense shall, using funds available pursuant to
subsection (b), either—
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(1) procure nonintrusive inspection systems and
transfer the systems to the United States Customs
Service; or
(2) transfer the funds to the Secretary of the
Treasury for use to procure nonintrusive inspection
systems for the United States Customs Service.
(b) FUNDING.—Of the amounts authorized to be appro-
priated under section 301(15), $25,000,000 shall be avail-
able for carrying out subsection (a).
Subtitle D—Department of Defense
Education Programs
SEC. 1031. CONTINUATION OF THE UNIFORMED SERVICES
UNIVERSITY OF THE HEALTH SCIENCES.
(a) POLICY.—Congress reaffirms—
(1) the prohibition set forth in subsection (a) of
section 922 of the National Defense Authorization Act
for Fiscal Year 1995 (Public Law 103–337; 108 Stat.
2829; 10 U.S.C. 2112 note) regarding closure of the
Uniformed Services University of the Health Sciences;
and
(2) the expression of the sense of Congress set
forth in subsection (b) of such section regarding the
budgetary commitment to continuation of the univer-
sity.
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(b) PERSONNEL STRENGTH.—During the 5-year pe-
riod beginning on October 1, 1995, the personnel staffing
levels for the Uniformed Services University of the Health
Services may not be reduced below the personnel staffing
levels for the university as of October 1, 1993.
SEC. 1032. ADDITIONAL GRADUATE SCHOOLS AND PRO-
GRAMS AT THE UNIFORMED SERVICES UNI-
VERSITY OF THE HEALTH SCIENCES.
Section 2113 of title 10, United States Code, is amend-
ed by striking out subsection (h) and inserting in lieu there-
of the following:
‘‘(h) The Board may establish the following edu-
cational programs:
‘‘(1) Postdoctoral, postgraduate, and techno-
logical institutes.
‘‘(2) A graduate school of nursing.
‘‘(3) Other schools or programs that the Board
determines necessary in order to operate the Univer-
sity in a cost-effective manner.’’.
SEC. 1033. FUNDING FOR BASIC ADULT EDUCATION PRO-
GRAMS FOR MILITARY PERSONNEL AND DE-
PENDENTS OUTSIDE THE UNITED STATES.
Of the amounts authorized to be appropriated pursu-
ant to section 301, $600,000 shall be available to carry out
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adult education programs, consistent with the Adult Edu-
cation Act (20 U.S.C. 1201 et seq.), for—
(1) members of the Armed Forces who are serv-
ing in locations that are outside the United States
and not described in subsection (b) of such section
313; and
(2) the dependents of such members.
SEC. 1034. SCOPE OF EDUCATION PROGRAMS OF COMMU-
NITY COLLEGE OF THE AIR FORCE.
Section 9315(a)(1) of title 10, United States Code, is
amended by striking out ‘‘for enlisted members of the armed
forces’’ and inserting in lieu thereof ‘‘for enlisted members
of the Air Force’’.
SEC. 1035. DATE FOR ANNUAL REPORT ON SELECTED RE-
SERVE EDUCATIONAL ASSISTANCE PROGRAM.
Section 16137 of title 10, United States Code, is
amended by striking out ‘‘December 15 of each year’’ and
inserting in lieu thereof ‘‘March 1 of each year’’.
SEC. 1036. ESTABLISHMENT OF JUNIOR R.O.T.C. UNITS IN
INDIAN RESERVATION SCHOOLS.
It is the sense of Congress that the Secretary of Defense
should ensure that secondary educational institutions on
Indian reservations are afforded a full opportunity along
with other secondary educational institutions to be selected
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as locations for establishment of new Junior Reserve Offi-
cers’ Training Corps units.
Subtitle E—Cooperative Threat Re-
duction 
With 
States 
of 
the
Former Soviet Union
SEC. 1041. COOPERATIVE THREAT REDUCTION PROGRAMS
DEFINED.
For purposes of this subtitle, Cooperative Threat Re-
duction programs are the programs described in section
1203(b) of the Cooperative Threat Reduction Act of 1993
(title XII of Public Law 103–160; 107 Stat. 1778; 22 U.S.C.
5952(b)).
SEC. 1042. FUNDING MATTERS.
(a) LIMITATION.—Funds authorized to be appro-
priated under section 301(18) may not be obligated for any
program established primarily to assist nuclear weapons
scientists in States of the former Soviet Union until 30 days
after the date on which the Secretary of Defense certifies
in writing to Congress that the funds to be obligated will
not be used to contribute to the modernization of the strate-
gic nuclear forces of such States or for research, develop-
ment, or production of weapons of mass destruction.
(b) REIMBURSEMENT OF PAY ACCOUNTS.—Funds au-
thorized to be appropriated under section 301(18) may be
transferred to military personnel accounts for reimburse-
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ment of those accounts for the pay and allowances paid to
reserve component personnel for service while engaged in
any activity under a Cooperative Threat Reduction pro-
gram.
SEC. 1043. LIMITATION RELATING TO OFFENSIVE BIOLOGI-
CAL WARFARE PROGRAM OF RUSSIA.
(a) FINDINGS.—Congress makes the following findings:
(1) Even though the President of Russia and
other senior leaders of the Russian government have
committed Russia to comply with the Biological
Weapons Convention, a June 1995 United States
Government report asserts that official United States
concern remains about the Russian biological warfare
program.
(2) In reviewing the President’s budget request
for fiscal year 1996 for Cooperative Threat Reduction,
and consistent with the finding in section 1207(a)(5)
of the National Defense Authorization Act for Fiscal
Year 1995 (Public Law 103–337; 108 Stat. 2884), the
Senate has taken into consideration the questions and
concerns about Russia’s biological warfare program
and Russia’s compliance with the obligations under
the Biological Weapons Convention.
(b) LIMITATION ON USE OF FUNDS FOR COOPERATIVE
THREAT REDUCTION.—Of the amount available under sec-
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tion 301(18) for Cooperative Threat Reduction programs,
$50,000,000 shall be reserved and not obligated until the
President certifies to Congress that Russia is in compliance
with the obligations under the Biological Weapons Conven-
tion.
SEC. 1044. LIMITATION ON USE OF FUNDS FOR COOPERA-
TIVE THREAT REDUCTION.
(a) LIMITATION.—Of the funds appropriated or other-
wise made available for fiscal year 1996 under the heading
‘‘FORMER SOVIET UNION THREAT REDUCTION’’ for dis-
mantlement and destruction of chemical weapons, not more
than $52,000,000 may be obligated or expended for that
purpose until the President certifies to Congress the follow-
ing:
(1) That the United States and Russia have
completed a joint laboratory study evaluating the pro-
posal of Russia to neutralize its chemical weapons
and the United States agrees with the proposal.
(2) That Russia is in the process of preparing,
with the assistance of the United States (if necessary),
a comprehensive plan to manage the dismantlement
and destruction of the Russia chemical weapons stock-
pile.
(3) That the United States and Russia are com-
mitted to resolving outstanding issues under the 1989
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Wyoming Memorandum of Understanding and the
1990 Bilateral Destruction Agreement.
(b) DEFINITIONS.—In this section:
(1) The term ‘‘1989 Wyoming Memorandum of
Understanding’’ means the Memorandum of Under-
standing between the Government of the United States
of America and the Government of the Union of So-
viet Socialist Republics Regarding a Bilateral Ver-
ification Experiment and Data Exchange Related to
Prohibition on Chemical Weapons, signed at Jackson
Hole, Wyoming, on September 23, 1989.
(2) The term ‘‘1990 Bilateral Destruction Agree-
ment’’ means the Agreement between the United
States of America and the Union of Soviet Socialist
Republics on destruction and non-production of chem-
ical weapons and on measures to facilitate the multi-
lateral convention on banning chemical weapons
signed on June 1, 1990.
Subtitle F—Matters Relating to
Other Nations
SEC. 1051. COOPERATIVE RESEARCH AND DEVELOPMENT
AGREEMENTS WITH NATO ORGANIZATIONS.
Section 2350b(e) of title 10, United States Code, is
amended—
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(1) in paragraph (1), by inserting ‘‘or a NATO
organization’’ after ‘‘a participant (other than the
United States)’’; and
(2) in paragraph (2), by inserting ‘‘or a NATO
organization’’ after ‘‘a cooperative project’’.
SEC. 1052. NATIONAL SECURITY IMPLICATIONS OF UNITED
STATES EXPORT CONTROL POLICY.
(a) FINDINGS.—Congress makes the following findings:
(1) Export controls remain an important ele-
ment of the national security policy of the United
States.
(2) It is in the national interest that United
States export control policy prevent the transfer, to
potential adversaries or combatants of the United
States, of technology that threatens the national secu-
rity or defense of the United States.
(3) It is in the national interest that the United
States monitor aggressively the export of technology
in order to prevent its diversion to potential adver-
saries or combatants of the United States.
(4) The Department of Defense relies increas-
ingly on commercial and dual-use technologies, prod-
ucts, and processes to support United States military
capabilities and economic strength.
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(5) The Department of Defense evaluates license
applications for the export of commodities whose ex-
port is controlled for national security reasons if such
commodities are exported to certain countries, but the
Department does not evaluate license applications for
the export of such commodities if such commodities
are exported to other countries.
(b) SENSE OF CONGRESS.—It is the sense of Congress
that—
(1) the maintenance of the military advantage of
the United States depends on effective export controls
on dual-use items and technologies that are critical to
the military capabilities of the Armed Forces;
(2) the Government should identify the dual-use
items and technologies that are critical to the mili-
tary capabilities of the Armed Forces, including the
military use made of such items and technologies, and
should reevaluate the export control policy of the
United States in light of such identification; and
(3) the Government should utilize unilateral ex-
port controls on dual-use items and technologies that
are critical to the military capabilities of the Armed
Forces (regardless of the availability of such items or
technologies overseas) with respect to the countries
that—
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(A) pose a threat to the national security
interests of the United States; and
(B) are not members in good standing of bi-
lateral or multilateral agreements to which the
United States is a party on the use of such items
and technologies.
(c) REPORT REQUIRED.—(1) Not later than December
1, 1995, the Secretary of Defense shall submit to the Com-
mittees on Armed Services and on Foreign Relations of the
Senate and the Committees on National Security and on
International Relations of the House of Representatives a
report on the effect of the export control policy of the United
States on the national security interests of the United
States.
(2) The report shall include the following:
(A) A list setting forth each country determined
to be a rogue nation or potential adversary or com-
batant of the United States.
(B) For each country so listed, a list of—
(i) the categories of items that should be
prohibited for export to the country;
(ii) the categories of items that should be ex-
ported to the country only under an individual
license with conditions; and
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(iii) the categories of items that may be ex-
ported to the country under a general distribu-
tion license.
(C) For each category of items listed under
clauses (ii) and (iii) of subparagraph (B)—
(i) a statement whether export controls on
the category of items are to be imposed under a
multilateral international agreement or a unilat-
eral decision of the United States; and
(ii) a justification for the decision not to
prohibit the export of the items to the country.
(D) A description of United States policy on
sharing satellite imagery that has military signifi-
cance and a discussion of the criteria for determining
the imagery that has that significance.
(E) A description of the relationship between
United States policy on the export of space launch ve-
hicle technology and the Missile Technology Control
Regime.
(F) An assessment of United States efforts to
support the inclusion of additional countries in the
Missile Technology Control Regime.
(G) An assessment of the on-going efforts made
by potential participant countries in the Missile
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Technology Control Regime to meet the guidelines es-
tablished by the Missile Technology Control Regime.
(H) A brief discussion of the history of the space
launch vehicle programs of other countries, including
a discussion of the military origins and purposes of
such programs and the current level of military in-
volvement in such programs.
(3) The Secretary shall submit the report in unclassi-
fied form but may include a classified annex.
(4) In this subsection, the term ‘‘Missile Technology
Control Regime’’ means the policy statement between the
United States , the United Kingdom, the Federal Republic
of Germany, France, Italy, Canada, and Japan, announced
on April 16, 1987, to restrict sensitive missile-relevant
transfers based on the Missile Technology Control Regime
Annex, and any amendments thereto.
(d) DEPARTMENT OF DEFENSE REVIEW OF EXPORT
LICENSES
FOR CERTAIN BIOLOGICAL PATHOGENS.—(1)
Notwithstanding any other provision of law, the Secretary
of Defense shall, in consultation with appropriate elements
of the intelligence community, review each application that
is submitted to the Secretary of Commerce for an individual
validated license for the export of a class 2, class 3, or class
4 biological pathogen to a country known or suspected to
have an offensive biological weapons program. The purpose
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of the review is to determine if the export of the pathogen
pursuant to the license would be contrary to the national
security interests of the United States.
(2) The Secretary of Defense, in consultation with the
Secretary of State and the intelligence community, shall pe-
riodically inform the Secretary of Commerce as to the coun-
tries known or suspected to have an offensive biological
weapons program.
(3) In order to facilitate the review of an application
for an export license by appropriate elements of the intel-
ligence committee under paragraph (1), the Secretary of De-
fense shall submit a copy of the application to such appro-
priate elements.
(4) The Secretary of Defense shall carry out the review
of an application under this subsection not later than 30
days after the date on which the Secretary of Commerce
forwards a copy of the application to the Secretary of De-
fense for review.
(5) Upon completion of the review of an application
for an export license under this subsection, the Secretary
of Defense shall notify the Secretary of Commerce if the ex-
port of a biological pathogen pursuant to the license would
be contrary to the national security interests of the United
States.
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(6) Notwithstanding any other provision of law, upon
receipt of a notification with respect to an application for
an export license under paragraph (5), the Secretary of
Commerce shall deny the application.
(7) In this subsection:
(A) The term ‘‘class 2, class 3, or class 4 biologi-
cal pathogen’’ means any biological pathogen charac-
terized as a class 2, class 3, or class 4 biological
pathogen by the Centers for Disease Control.
(B) The term ‘‘intelligence community’’ has the
meaning given such term in section 3(4) of the Na-
tional Security Act of 1947 (50 U.S.C. 401a(4).
SEC. 1053. DEFENSE EXPORT LOAN GUARANTEES.
(a) ESTABLISHMENT OF PROGRAM.—(1) Chapter 148
of title 10, United States Code, is amended by adding at
the end the following new subchapter:
‘‘SUBCHAPTER VI—DEFENSE EXPORT LOAN
GUARANTEES
‘‘Sec.
‘‘2540. Establishment of loan guarantee program.
‘‘2540a. Transferability.
‘‘2540b. Limitations.
‘‘2540c. Fees charged and collected.
‘‘2540d. Definitions.
‘‘§ 2540. Establishment of loan guarantee program
‘‘(a) ESTABLISHMENT.—In order to meet the national
security objectives in section 2501(a) of this title, the Sec-
retary of Defense shall establish a program under which the
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Secretary may issue guarantees assuring a lender against
losses of principal or interest, or both principal and inter-
est, arising out of the financing of the sale or long-term
lease of defense articles, defense services, or design and con-
struction services to a country referred to in subsection (b).
‘‘(b) COVERED COUNTRIES.—The authority under sub-
section (a) applies with respect to the following countries:
‘‘(1) A member nation of the North Atlantic
Treaty Organization (NATO).
‘‘(2) A country designated as of March 31, 1995,
as a major non-NATO ally pursuant to section
2350a(i)(3) of this title.
‘‘(3) A country in Central Europe that, as deter-
mined by the Secretary of State—
‘‘(A) has changed its form of national gov-
ernment from a nondemocratic form of govern-
ment to a democratic form of government since
October 1, 1989; or
‘‘(B) is in the processing of changing its
form 
of 
national 
government 
from 
a
nondemocratic form of government to a demo-
cratic form of government.
‘‘(4) A noncommunist country that was a mem-
ber nation of the Asia Pacific Economic Cooperation
(APEC) as of October 31, 1993.
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‘‘(c) AUTHORITY SUBJECT TO PROVISIONS OF APPRO-
PRIATIONS.—The Secretary may guarantee a loan under
this subchapter only as provided in appropriations Acts.
‘‘§ 2540a. Transferability
‘‘A guarantee issued under this subchapter shall be
fully and freely transferable.
‘‘§ 2540b. Limitations
‘‘(a) TERMS
AND CONDITIONS
OF LOAN GUARAN-
TEES.—In issuing a guarantee under this subchapter for
a medium-term or long-term loan, the Secretary may not
offer terms and conditions more beneficial than those that
would be provided to the recipient by the Export-Import
Bank of the United States under similar circumstances in
conjunction with the provision of guarantees for nondefense
articles and services.
‘‘(b) LOSSES ARISING FROM FRAUD OR MISREPRE-
SENTATION.—No payment may be made under a guarantee
issued under this subchapter for a loss arising out of fraud
or misrepresentation for which the party seeking payment
is responsible.
‘‘(c) NO RIGHT OF ACCELERATION.—The Secretary of
Defense may not accelerate any guaranteed loan or incre-
ment, and may not pay any amount, in respect of a guar-
antee issued under this subchapter, other than in accord-
ance with the original payment terms of the loan.
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‘‘§ 2540c. Fees charged and collected
‘‘(a) IN GENERAL.—The Secretary of Defense shall
charge a fee (known as ‘exposure fee’) for each guarantee
issued under this subchapter.
‘‘(b) AMOUNT.—To the extent that the cost of the loan
guarantees under this subchapter is not otherwise provided
for in appropriations Acts, the fee imposed under this sec-
tion with respect to a loan guarantee shall be fixed in an
amount determined by the Secretary to be sufficient to meet
potential liabilities of the United States under the loan
guarantee.
‘‘(c) PAYMENT TERMS.—The fee for each guarantee
shall become due as the guarantee is issued. In the case of
a guarantee for a loan which is disbursed incrementally,
and for which the guarantee is correspondingly issued in-
crementally as portions of the loan are disbursed, the fee
shall be paid incrementally in proportion to the amount
of the guarantee that is issued.
‘‘§ 2540d. Definitions
‘‘In this subchapter:
‘‘(1) The terms ‘defense article’, ‘defense services’,
and ‘design and construction services’ have the mean-
ings given those terms in section 47 of the Arms Ex-
port Control Act (22 U.S.C. 2794).
‘‘(2) The term ‘cost’, with respect to a loan guar-
antee, has the meaning given that term in section 502
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of the Congressional Budget and Impoundment Con-
trol Act of 1974 (2 U.S.C. 661a).’’.
(2) The table of subchapters at the beginning of such
chapter is amended by adding at the end the following new
item:
‘‘VI. Defense Export Loan Guarantees ...........................................................
2540’’.
(b) REPORT.—(1) Not later than two years after the
date of the enactment of this Act, the President shall submit
to Congress a report on the loan guarantee program estab-
lished pursuant to section 2540 of title 10, United States
Code, as added by subsection (a).
(2) The report shall include—
(A) an analysis of the costs and benefits of the
loan guarantee program; and
(B) any recommendations for modification of the
program that the President considers appropriate, in-
cluding—
(i) any recommended addition to the list of
countries for which a guarantee may be issued
under the program; and
(ii) any proposed legislation necessary to
authorize a recommended modification.
SEC. 1054. LANDMINE CLEARING ASSISTANCE PROGRAM.
(a) REVISION OF AUTHORITY.—Section 1413 of the
National Defense Authorization Act for Fiscal Year 1995
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(Public Law 103–337; 108 Stat. 2913; 10 U.S.C. 401 note)
is amended by adding at the end the following:
‘‘(f) SPECIAL
REQUIREMENTS
FOR
FISCAL
YEAR
1996.—Funds available for fiscal year 1996 for the pro-
gram under subsection (a) may not be obligated for involve-
ment of members of the Armed Forces in an activity under
the program until the date that is 30 days after the date
on which the Secretary of Defense certifies to Congress, in
writing, that the involvement of such personnel in the activ-
ity satisfies military training requirements for such person-
nel.
‘‘(g) TERMINATION OF AUTHORITY.—The Secretary of
Defense may not provide assistance under subsection (a)
after September 30, 1996.’’.
(b) REVISION OF DEFINITION OF LANDMINE.—Section
1423(d)(3) of the National Defense Authorization Act for
Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1831)
is amended by striking out ‘‘by remote control or’’.
(c) FISCAL YEAR 1996 FUNDING.—Of the amount au-
thorized to be appropriated by section 301 for Overseas Hu-
manitarian, Disaster, and Civic Aid (OHDACA) programs
of the Department of Defense, not more than $20,000,000
shall be available for the program of assistance under sec-
tion 1413 of the National Defense Authorization Act for Fis-
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cal Year 1995 (Public Law 103–337; 108 Stat. 2913; 10
U.S.C. 401 note).
SEC. 
1055. STRATEGIC 
COOPERATION 
BETWEEN 
THE
UNITED STATES AND ISRAEL.
(a) FINDINGS.—Congress makes the following findings:
(1) The President and Congress have repeatedly
declared the long-standing United States commitment
to maintaining the qualitative superiority of the Is-
rael Defense Forces over any combination of potential
adversaries.
(2) Congress continues to recognize the many
benefits to the United States from its strategic rela-
tionship with Israel, including that of enhanced re-
gional stability and technical cooperation.
(3) Despite the historic peace effort in which Is-
rael and its neighbors are engaged, Israel continues to
face severe potential threats to its national security
that are compounded by terrorism and by the pro-
liferation of weapons of mass destruction and ballistic
missiles.
(4) Congress supports enhanced United States
cooperation with Israel in all fields and, especially,
in finding new ways to deter or counter mutual
threats.
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(b) SENSE OF CONGRESS.—It is the sense of Congress
that—
(1) the President should ensure that any conven-
tional defense system or technology offered by the
United States for sale to any member nation of the
North Atlantic Treaty Organization (NATO) or to
any major non-NATO ally is concurrently made
available for purchase by Israel unless the President
determines that it would not be in the national secu-
rity interests of the United States to do so; and
(2) the President should make available to Israel,
within existing technology transfer laws, regulations,
and policies, advanced United States technology nec-
essary for achieving continued progress in cooperative
United States-Israel research and development of the-
ater missile defenses.
SEC. 1056. SUPPORT SERVICES FOR THE NAVY AT THE PORT
OF HAIFA, ISRAEL.
It is the sense of Congress that the Secretary of the
Navy should promptly undertake such actions as are nec-
essary—
(1) to improve the services available to the Navy
at the Port of Haifa, Israel; and
(2) to ensure that the continuing increase in
commercial activities at the Port of Haifa does not
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adversely affect the availability to the Navy of the
services required by the Navy at the port.
SEC. 1057. PROHIBITION ON ASSISTANCE TO TERRORIST
COUNTRIES.
(a) PROHIBITION.—Subchapter I of chapter 134 of
title 10, United States Code, is amended by adding at the
end the following:
‘‘§ 2249a. Prohibition on assistance to terrorist coun-
tries
‘‘(a) PROHIBITION.—Funds available to the Depart-
ment of Defense may not be obligated or expended to provide
financial assistance to—
‘‘(1) any country with respect to which the Sec-
retary of State has made a determination under sec-
tion 6(j)(1)(A) of the Export Administration Act of
1979 (50 App. 2405(j));
‘‘(2) any country identified in the latest report
submitted to Congress under section 140 of the For-
eign Relations Authorization Act, Fiscal Years 1988
and 1989 (22 U.S.C. 2656f), as providing significant
support for international terrorism; or
‘‘(3) any other country that, as determined by
the President—
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‘‘(A) grants sanctuary from prosecution to
any individual or group that has committed an
act of international terrorism; or
‘‘(B) otherwise supports international ter-
rorism.
‘‘(b) WAIVER.—(1) The President may waive the ap-
plication of subsection (a) to a country if the President de-
termines that it is in the national security interests of the
United States to do so or that the waiver should be granted
for humanitarian reasons.
‘‘(2) The President shall—
‘‘(A) notify the Committees on Armed Services
and Foreign Relations of the Senate and the Commit-
tees on National Security and on International Rela-
tions of the House of Representatives at least 15 days
before the waiver takes effect; and
‘‘(B) publish a notice of the waiver in the Fed-
eral Register.
‘‘(c) DEFINITION.—In this section, the term ‘inter-
national terrorism’ has the meaning given that term in sec-
tion 140(d) of the Foreign Relations Authorization Act, Fis-
cal Years 1988 and 1989 (22 U.S.C. 2656f(d)).’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of subchapter I of such chapter is amended
by adding at the end the following:
‘‘2249a. Prohibition on assistance to terrorist countries.’’.
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SEC. 1058. INTERNATIONAL MILITARY EDUCATION AND
TRAINING.
(a) SENSE OF CONGRESS.—It is the sense of Congress
that—
(1) it is in the national security interest of the
United States to promote military professionalism
(including an understanding of and respect for the
proper role of the military in a civilian-led demo-
cratic society), the effective management of defense re-
sources, the recognition of internationally recognized
human rights, and an effective military justice system
within the armed forces of allies of the United States
and of countries friendly to the United States;
(2) it is in the national security interest of the
United States to foster rapport, understanding, and
cooperation between the Armed Forces of the United
States and the armed forces of allies of the United
States and of countries friendly to the United States;
(3) the international military education and
training program is a low-cost method of promoting
military professionalism within the armed forces of
allies of the United States and of countries friendly
to the United States and fostering better relations be-
tween the Armed Forces of the United States and
those armed forces;
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(4) the dissolution of the Soviet Union and the
Warsaw Pact alliance and the spread of democracy in
the Western Hemisphere have created an opportunity
to promote the military professionalism of the armed
forces of the affected nations;
(5) funding for the international military edu-
cation and training program of the United States has
decreased dramatically in recent years;
(6) the decrease in funding for the international
military education and training program has re-
sulted in a major decrease in the participation of per-
sonnel from Asia, Latin America, and Africa in the
program;
(7) the Chairman of the Joint Chiefs of Staff
and the commanders in chief of the regional combat-
ant commands have consistently testified before con-
gressional committees that the international military
education and training program fosters cooperation
with and improves military management, civilian
control over the military forces, and respect for
human rights within foreign military forces; and
(8) the delegation by the President to the Sec-
retary of Defense of authority to perform functions re-
lating to the international military education and
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training program is appropriate and should be con-
tinued.
(b) ACTIVITIES AUTHORIZED.—(1) Part I of subtitle
A of title 10, United States Code, is amended by adding
at the end the following:
‘‘CHAPTER 23—CONTACTS UNDER PRO-
GRAMS IN SUPPORT OF FOREIGN MILI-
TARY FORCES
‘‘Sec.
‘‘461. Military-to-military contacts and comparable activities.
‘‘462. International military education and training.
‘‘§ 462. International military education and training
‘‘(a) PROGRAM AUTHORITY.—Subject to the provisions
of chapter 5 of part II of the Foreign Assistance Act of 1961
(22 U.S.C. 2347 et seq.), the Secretary of Defense, upon the
recommendation of a commander of a combatant command,
or, with respect to a geographic area or areas not within
the area of responsibility of a commander of a combatant
command, upon the recommendation of the Chairman of
the Joint Chiefs of Staff, may pay a portion of the costs
of providing international military education and training
to military personnel of foreign countries and to civilian
personnel of foreign countries who perform national defense
functions.
‘‘(b) RELATIONSHIP
TO
OTHER
FUNDING.—Any
amount provided pursuant to subsection (a) shall be in ad-
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dition to amounts otherwise available for international
military education and training for that fiscal year.’’.
(2) Section 168 of title 10, United States Code, is re-
designated as section 461, is transferred to chapter 23 (as
added by paragraph (1)), and is inserted after the table
of sections at the beginning of such chapter.
(3)(A) The tables of chapters at the beginning of sub-
title A of such title and the beginning of part I of such
subtitle are amended by inserting after the item relating
to chapter 22 the following:
‘‘23. Contacts Under Programs in Support of Foreign Military Forces .....
461’’.
(B) The table of sections at the beginning of chapter
6 of title 10, United States Code, is amended by striking
out the item relating to section 168.
(c) FISCAL YEAR 1996 FUNDING.—Of the amount au-
thorized to be appropriated under section 301(5),
$20,000,000 shall be available to the Secretary of Defense
for the purposes of carrying out activities under section 462
of title 10, United States Code, as added by subsection (b).
(d) RELATIONSHIP TO AUTHORITY OF SECRETARY OF
STATE.—Nothing in this section or section 462 of title 10,
United States Code (as added by subsection (b)(1)), shall
impair the authority or ability of the Secretary of State
to coordinate policy regarding international military edu-
cation and training programs.
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SEC. 1059. REPEAL OF LIMITATION REGARDING AMERICAN
DIPLOMATIC FACILITIES IN GERMANY.
Section 1432 of the National Defense Authorization
Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat.
1833) is repealed.
SEC. 1060. IMPLEMENTATION OF ARMS CONTROL AGREE-
MENTS.
(a) FUNDING.—Of the amounts authorized to be ap-
propriated under sections 102, 103, 104, 201, and 301,
$228,900,000 shall be available for implementing arms con-
trol agreements to which the United States is a party.
(b) LIMITATION.—(1) Except as provided in para-
graph (2), none of the funds authorized to be appropriated
under subsection (a) for the costs of implementing an arms
control agreement may be used to reimburse expenses in-
curred by any other party to the agreement for which, with-
out regard to any executive agreement or any policy not
part of an arms control agreement—
(A) the other party is responsible under the
terms of the arms control agreement; and
(B) the United States has no responsibility
under the agreement.
(2) The limitation in paragraph (1) does not apply
to a use of funds to fulfill a policy of the United States
to reimburse expenses incurred by another party to an arms
control agreement if—
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(A) the policy does not modify any obligation
imposed by the arms control agreement;
(B) the President—
(i) issued or approved the policy before the
date of the enactment of this Act; or
(ii) has entered into an agreement on the
policy with the government of another country or
has approved an agreement on the policy entered
into by an official of the United States and the
government of another country; and
(C) the President has notified the congressional
defense committees, the Committee on Foreign Rela-
tions of the Senate, and the Committee on Inter-
national Relations of the House of Representatives of
the policy or the policy agreement (as the case may
be), in writing, at least 30 days before the date on
which the President issued or approved the policy or
has entered into or approved the policy agreement.
(c) DEFINITIONS.—In this section:
(1) The term ‘‘arms control agreement’’ means
an arms control treaty or other form of international
arms control agreement.
(2) The term ‘‘executive agreement’’ is an inter-
national agreement entered into by the President that
is not authorized by statute or approved by the Sen-
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ate under Article II, section 2, clause 2 of the Con-
stitution.
SEC. 1061. SENSE OF CONGRESS ON LIMITING THE PLAC-
ING OF UNITED STATES FORCES UNDER
UNITED NATIONS COMMAND OR CONTROL.
(a) FINDINGS.—Congress finds that—
(1) the President has made United Nations peace
operations a major component of the foreign and se-
curity policies of the United States;
(2) the President has committed United States
military personnel under United Nations operational
control to missions in Haiti, Croatia, and Macedonia
that could endanger those personnel;
(3) the President has committed the United
States to deploy as many as 25,000 military person-
nel to Bosnia-Herzegovina as peacekeepers under
United Nations command and control in the event
that the parties to that conflict reach a peace agree-
ment;
(4) although the President has insisted that he
will retain command of United States forces at all
times, in the past this has meant administrative con-
trol of United States forces only, while operational
control has been ceded to United Nations command-
ers, some of whom were foreign nationals;
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(5) the experience of United States forces partici-
pating in combined United States-United Nations op-
erations in Somalia, and in combined United Na-
tions-NATO operations in the former Yugoslavia,
demonstrate that prerequisites for effective military
operations such as unity of command and clarity of
mission have not been met by United Nations com-
mand and control arrangements; and
(6) despite the many deficiencies in the conduct
of United Nations peace operations, there may be oc-
casions when it is in the national security interests
of the United States to participate in such operations.
(b) POLICY.—It is the sense of Congress that—
(1) the President should consult closely with
Congress regarding any United Nations peace oper-
ation that could involve United States combat forces,
and that such consultations should continue through-
out the duration of such activities;
(2) the President should consult with Congress
prior to a vote within the United Nations Security
Council on any resolution which would authorize, ex-
tend, or revise the mandates for such activities;
(3) in view of the complexity of United Nations
peace operations and the difficulty of achieving unity
of command and expeditious decisionmaking, the
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United States should participate in such operations
only when it is clearly in the national security inter-
est to do so;
(4) United States combat forces should be under
the operational control of qualified commanders and
should have clear and effective command and control
arrangements and rules of engagement (which do not
restrict their self-defense in any way) and clear and
unambiguous mission statements; and
(5) none of the Armed Forces of the United
States should be under the operational control of for-
eign nationals in United Nations peace enforcement
operations except in the most extraordinary cir-
cumstances.
(c) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘United Nations peace enforcement
operations’’ means any international peace enforce-
ment or similar activity that is authorized by the
United Nations Security Council under chapter VII
of the Charter of the United Nations; and
(2) the term ‘‘United Nations peace operations’’
means any international peacekeeping, peacemaking,
peace enforcement, or similar activity that is author-
ized by the United Nations Security Council under
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chapter VI or VII of the Charter of the United Na-
tions.
SEC. 1062. SENSE OF SENATE ON PROTECTION OF UNITED
STATES FROM BALLISTIC MISSILE ATTACK.
(a) FINDINGS.—The Senate makes the following find-
ings:
(1) The proliferation of weapons of mass destruc-
tion and ballistic missiles presents a threat to the en-
tire World.
(2) This threat was recognized by Secretary of
Defense William J. Perry in February 1995 in the
Annual Report to the President and the Congress
which states that ‘‘[b]eyond the five declared nuclear
weapons states, at least 20 other nations have ac-
quired or are attempting to acquire weapons of mass
destruction—nuclear, biological, or chemical weap-
ons—and the means to deliver them. In fact, in most
areas where United States forces could potentially be
engaged on a large scale, many of the most likely ad-
versaries already possess chemical and biological
weapons. Moreover, some of these same states appear
determined to acquire nuclear weapons.’’.
(3) At a summit in Moscow in May 1995, Presi-
dent Clinton and President Yeltsin commented on this
threat in a Joint Statement which recognizes
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‘‘ . . . the threat posed by worldwide proliferation of
missiles and missile technology and the necessity of
counteracting this threat . . . ’’.
(4) At least 25 countries may be developing
weapons of mass destruction and the delivery systems
for such weapons.
(5) At least 24 countries have chemical weapons
programs in various stages of research and develop-
ment.
(6) Approximately 10 countries are believed to
have biological weapons programs in various stages of
development.
(7) At least 10 countries are reportedly interested
in the development of nuclear weapons.
(8) Several countries recognize that weapons of
mass destruction and missiles increase their ability to
deter, coerce, or otherwise threaten the United States.
Saddam Hussein recognized this when he stated, on
May 8, 1990, that ‘‘[o]ur missiles cannot reach Wash-
ington. If they could reach Washington, we would
strike it if the need arose.’’.
(9) International regimes like the Non-Prolifera-
tion Treaty, the Biological Weapons Convention, and
the Missile Technology Control Regime, while effec-
tive, cannot by themselves halt the spread of weapons
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and technology. On January 10, 1995, Director of
Central Intelligence, James Woolsey, said with regard
to Russia that ‘‘ . . . we are particularly concerned
with the safety of nuclear, chemical, and biological
materials as well as highly enriched uranium or plu-
tonium, although I want to stress that this is a global
problem. For example, highly enriched uranium was
recently stolen from South Africa, and last month
Czech authorities recovered three kilograms of 87.8
percent-enriched HEU in the Czech Republic—the
largest seizure of near-weapons grade material to date
outside the Former Soviet Union.’’.
(10) The possession of weapons of mass destruc-
tion and missiles by developing countries threatens
our friends, allies, and forces abroad and will ulti-
mately threaten the United States directly. On August
11, 1994, Deputy Secretary of Defense John Deutch
said that ‘‘[i]f the North Koreans field the Taepo
Dong 2 missile, Guam, Alaska, and parts of Hawaii
would potentially be at risk.’’.
(11) The end of the Cold War has changed the
strategic environment facing and between the United
States and Russia. That the Clinton Administration
believes the environment to have changed was made
clear by Secretary of Defense William J. Perry on