National Defense Authorization Act for Fiscal Year 1996
PL 104-106 (S.1124), enacted 02/10/1996

110 STAT. 186 
PUBLIC LAW 104-106—FEB. 10, 1996 
Public Law 104-106 
104th Congress 
Feb. 10, 1996 
[S. 1124] 
National Defense 
Authorization 
Act for Fiscal 
Year 1996. 
An Act 
To authorize appropriations for fiscal year 1996 for military activities of the Depart-
ment of Defense, for military construction, and for defense activities of the Depart-
ment of Energy, to prescribe personnel strengths for such fiscal year for the 
Armed Forces, to reform acquisition laws and information technology management 
of the Federal Government, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "National Defense Authorization 
Act for Fiscal Year 1996". 
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS. 
(a) DIVISIONS.—^This Act is organized into five divisions as 
follows: 
(1) Division A—Department of Defense Authorizations. 
(2) Division B—Military Construction Authorizations. 
(3) Division C—Department of Energy National Security 
Authorizations and Other Authorizations. 
(4) Division D—Federal Acquisition Reform. 
(5) 
Division 
E—Information 
Technology 
Management 
Reform. 
(b) TABLE OF CONTENTS.—^The table of contents for this Act 
is as follows: 
Sec. 1. Short title. 
Sec. 2. Organization of Act into divisions; table of contents. 
Sec. 3. Congressional defense committees defined. 
Sec. 4. Extension of time for submission of reports. 
DIVISION A—DEPARTMENT OF DEFENSE 
AUTHORIZATIONS 
TITLE I—PROCUREMENT 
Subtitle A—^Authorization of Appropriations 
Army. 
Navy and Marine Corps. 
Air Force. 
Defense-wide activities. 
Reserve components. 
Defense Inspector General. 
Chemical demilitarization program. 
Defense health programs. 
Subtitle B—^Army Programs 
Procurement of OH-58D Armed Kiowa Warrior helicopters. 
Repeal of requirements for armored vehicle upgrades. 
Miiltiyear procurement of helicopters. 
Sec. 
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101 
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113 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 187 
Sec. 114. Report on AH-64D engine upgrades. 
Sec. 115. Requirement for use of previously authorized multiyear procurement au-
thority for Army small arms procurement. 
Subtitle C—Navy Programs 
Sec. 131. Nuclear attack submarines. 
Sec. 132. Research for advanced submarine technology. 
Sec. 133. Cost limitation for Seawolf submarine program. 
Sec. 134. Repeal of prohibition on backfit of Trident submarines. 
Sec. 135. Arleigh Burke class destroyer program. 
Sec. 136. Acquisition program for crash attenuating seats. 
Sec. 137. T-39N trainer aircraft. 
Sec. 138. Pioneer unmanned aerial vehicle program. 
Subtitle D—^Air Force Programs 
Sec. 141. B-2 aircraft program. 
Sec. 142. Procurement of B-2 bombers. 
Sec. 143. MC-130H aircraft program. 
Subtitle E—Chemical Demilitarization Program 
Sec. 151. Repeal of requirement to proceed expeditiously with development of 
chemical demilitarization cryofracture facility at Tooele Army Depot, 
Utah. 
Sec. 152. Destruction of existing stockpile of lethal chemical agents and munitions. 
Sec. 153. Administration of chemical demilitarization program. 
TITLE II—RESEARCH, DEVELOPMENT, TEST, AND EVALUATION 
Subtitle A—^Authorization of Appropriations 
Sec. 201. Authorization of appropriations. 
Sec. 202. Amount for basic research and exploratory development. 
Sec. 203. Modifications to Strategic Environmental Researcn and Development Pro-
gram. 
Sec. 204. Defense dual use technology initiative. 
Subtitle B—Program Requirements, Restrictions, and Limitations 
Sec. 211. Space launch modernization. 
Sec. 212. Tactical manned reconnaissance. 
Sec. 213. Joint Advanced Strike Technology (JAST) program. 
Sec. 214. Development of laser program. 
Sec. 215. Navy mine countermeasures program. 
Sec. 216. Space-based infrared system. 
Sec. 217. Defense Nuclear Agency programs. 
Sec. 218. Counterproliferation support program. 
Sec. 219. Nonlethal weapons study. 
Sec. 220. Federally funded research and development centers and university-affili-
ated research centers. 
Sec. 221. Joint seismic program and global seismic network. 
Sec. 222. Hydra-70 rocket product improvement program. 
Sec. 223. Limitation on obligation of funds until receipt of electronic combat con-
solidation master plan. 
Sec. 224. Report on reductions in research, development, test, and evaluation. 
Sec. 225. Advanced Field Artillery System (Crusader). 
Sec. 226. Demilitarization of conventional munitions, rockets, and explosives. 
Sec. 227. Defense Airborne Reconnaissance program. 
Subtitle C—Ballistic Missile Defense Act of 1995 
Sec. 231. Short title. 
Sec. 232. Findings. 
Sec. 233. Ballistic Missile Defense policy. 
Sec. 234. Theater Missile Defense architecture. 
Sec. 235. Prohibition on use of funds to implement an international agreement con-
cerning Theater Missile Defense systems. 
Sec. 236. Ballistic Missile Defense cooperation with allies. 
Sec. 237. ABM Treaty defined. 
Sec. 238. Repeal ofMissile Defense Act of 1991. 
Subtitle D—Other Ballistic Missile Defense Provisions 
Sec. 251. Ballistic Missile Defense program elements. 
Sec. 252. Testing of Theater Missile Defense interceptors. 
110 STAT. 188 
PUBLIC LAW 104-106—FEB. 10, 1996 
Sec. 253. Repeal of missile defense provisions. 
Subtitle E—^Miscellaneous Reviews, Studies, and Reports 
Sec. 261. Precision-guided munitions. 
Sec. 262. Review of C'*I by National Research Council. 
Sec. 263. Analysis of consolidation of basic research accounts of military depart-
ments. 
Sec. 264. Change in reporting period from calendar year to fiscal year for annual 
report on certain contracts to colleges and universities. 
Sec. 265. Aeronautical research and test capabilities assessment. 
Subtitle F—Other Matters 
Sec. 271. Advanced lithography program. 
Sec. 272. Enhanced fiber optic guided missile (EFOG-M) system. 
Sec. 273. States eligible for assistance under Defense Experimental Program To 
Stimulate Competitive Research. 
Sec. 274. Cruise missile defense initiative. 
Sec. 275. Modification to university research initiative support program. 
Sec. 276. Manufacturing technology program. 
Sec. 277. Five-year plan for consolidation of defense laboratories and test and eval-
uation centers. 
Sec. 278. Limitation on T-38 avionics upgrade program. 
Sec. 279. Global Positioning System. 
Sec. 280. Revision of authority for providing Army support for the National Science 
Center for Communications and Electronics. 
TITLE III—OPERATION AND MAINTENANCE 
Subtitle A—^Authorization of Appropriations 
Sec. 301. Operation and maintenance funding. 
Sec. 302. Working capital funds. 
Sec. 303. Armed Forces Retirement Home. 
Sec. 304. Transfer from National Defense Stockpile Transaction Fund. 
Sec. 305. Civil Air Patrol. 
Subtitle B—Depot-Level Activities 
Sec. 311. Policy regarding performance of depot-level maintenance and repair for 
the Department of Defense. 
Sec. 312. Management of depot employees. 
Sec. 313. Extension of authority for aviation depots and naval shipyards to engage 
in defense-related production and services. 
Sec. 314. Modification of notification requirement regarding use of core logistics 
functions waiver. 
Subtitle C—^Environmental Provisions 
Sec. 321. Revision of requirements for agreements for services under environmental 
restoration program. 
Sec. 322. Addition of amounts creditable to Defense Environmental Restoration Ac-
count. 
Sec. 323. Use of Defense Environmental Restoration Account. 
Sec. 324. Revision of authorities relating to restoration advisory boards. 
Sec. 325. Discharges from vessels of the Armed Forces. 
Subtitle D—Commissaries and Nonappropriated Fund Instrumentalities 
Sec. 331. Operation of commissary system. 
Sec. 332. Limited release of commissary stores sales information to manufacturers, 
distributors, and other vendors doing business with Defense Com-
missary Agency. 
Sec. 333. Economical distribution of distilled spirits by nonappropriated fund in-
strumentalities. 
Sec. 334. Transportation by commissaries and exchanges to overseas locations. 
Sec. 335. Demonstration project for uniform funding of morale, welfare, and recre-
ation activities at certain military installations. 
Sec. 336. Operation of combined exchange and commissary stores. 
Sec. 337. Deferred payment programs of military exchanges. 
Sec. 338. Availability of funds to offset expenses incurred by Army and Air Force 
Exchange Service on account of troop reductions in Europe. 
Sec. 339. Study regarding improving efficiencies in operation of military exchanges 
and other morale, welfare, and recreation activities and commissary 
stores. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 189 
Sec. 340. Repeal of requirement to convert ships' stores to nonappropriated fund in-
strumentalities. 
Sec. 341. Disposition of excess morale, welfare, and recreation fiinds. 
Sec. 342. Clarification of entitlement to use of morale, welfare, and recreation fa-
cilities by members of reserve components and dependents. 
Subtitle E—^Performance of Functions by Private-Sector Sources 
Sec. 351. Competitive procurement of printing and duplication services. 
Sec. 352. Direct vendor delivery system for consvunable inventory items of Depart-
ment of Defense. 
Sec. 353. Payroll, finance, and accounting functions of the Department of Defense. 
Sec. 354. Demonstration program to identify overpayments made to vendors. 
Sec. 355. Pilot program on private operation of defense dependents' schools. 
Sec. 356. Program for improved travel process for the Department of Defense. 
Sec. 357. Increased reliance on private-sector sources for commercial products and 
services. 
Subtitle F—^Miscellaneous Reviews, Studies, and Reports 
Sec. 361. Quarterly readiness reports. 
Sec. 362. Restatement of requirement for semiannual reports to Congress on trans-
fers from high-priority readiness appropriations. 
Sec. 363. Report regarding reduction of costs associated with contract management 
oversight. 
Sec. 364. Reviews of management of inventory control points and Material Manage-
ment Standard System. 
Sec. 365. Report on private performance of certain functions performed by military 
aircraft. 
Sec. 366. Strategy and report on automated information systems of Department of 
Defense. 
Subtitle G—Other Matters 
Sec. 371. Codification of Defense Business Operations Fund. 
Sec. 372. Clarification of services and property that may be exchanged to benefit 
the historical collection of the Armed Forces. 
Sec. 373. Financial management training. 
Sec. 374. Permanent authority for use of proceeds from the sale of certain lost, 
abandoned, or unclaimed property. 
Sec. 375. Sale of milita^ clothing and subsistence and other supplies of the Navy 
and Marine Corps. 
Sec. 376. Personnel services and logistical support for certain activities held on 
military installations. 
Sec. 377. Retention of monetary awards. 
Sec. 378. Provision of equiprnent and facilities to assist in emergency response ac-
tions. 
Sec. 379. Report on Departmerit of Defense military and civil defense preparedness 
to respond to emergencies resulting from a chemical, biological, radio-
logical, or nuclear attack. 
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS 
Subtitle A—^Active Forces 
Sec. 401. End strengths for active forces. 
Sec. 402. Temporary variation in DOPMA authorized end strength limitations for 
active duty Air Force and Navy officers in certain grades. 
Sec. 403. Certain general and flag officers awaiting retirement not to be counted. 
Subtitle B—Reserve Forces 
Sec. 411. End strengths for Selected Reserve. 
Sec. 412. End strengths for Reserves on active duty in support of the Reserves. 
Sec. 413. Counting of certain active component personnel assigned in support of re-
serve component training. 
Sec. 414. Increase in number of members in certain grades authorized to serve on 
active duty in support of the Reserves. 
Sec. 415. Reserves on active duty in support of cooperative threat reduction pro-
grams not to be counted. 
Sec. 416. Reserves on active duty for military-to-military contacts and comparable 
activities not to be counted. 
Subtitle C—Military Training Student Loads 
Sec. 421. Authorization of training student loads. 
110 STAT. 190 
PUBLIC LAW 104-106—FEB. 10, 1996 
Subtitle D—^Authorization of Appropriations 
Sec. 431. Authorization of appropriations for military personnel. 
Sec. 432. Authorization for increase in active-duty end strengths. 
TITLE V—MILITARY PERSONNEL POLICY 
Subtitle A—Officer Personnel Policy 
Sec. 501. Joint officer management. 
Sec. 502. Retired grade for officers in grades above major general and rear admiral. 
Sec. 503. Wearing of insignia for higher grade before promotion. 
Sec. 504. Authority to extend transition period for officers selected for early retire-
ment. 
Sec. 505. Army officer manning levels. 
Sec. 506. Authority for medical department officers other than physicians to be ap-
pointed as Surgeon General. 
Sec. 507. Deputy Judge Advocate General of the Air Force. 
Sec. 508. Authority for temporary promotions for certain Navy lieutenants with 
critical skills. 
Sec. 509. Retirement for years of service of Directors of Admissions of Military and 
Air Force academies. 
Subtitle B—^Matters Relating to Reserve Components 
Sec. 511. Extension of certain Reserve officer management authorities. 
Sec. 512. Mobilization income insurance program for members of Ready Reserve. 
Sec. 513. Military technician full-time support program for Army and Air Force re-
serve components. 
Sec. 514. Revisions to Army Guard Combat Reform Initiative to include Army Re-
serve under certain provisions and make certain revisions. 
Sec. 515. Active duty associate unit responsibility. 
Sec. 516. Leave for members of reserve components performing public safety duty. 
Sec. 517. Department of Defense funding for National Guard participation in joint 
disaster and emergency assistance exercises. 
Subtitle C—Decorations and Aveards 
Sec. 521. Award of Purple Heart to persons wounded while held as prisoners of war 
before April 25, 1962. 
Sec. 522. Authority to award decorations recognizing acts of valor performed in 
combat during the Vietnam conflict. 
Sec. 523. Military intelligence personnel prevented by secrecy from being consid-
ered for decorations and awards. 
Sec. 524. Review regarding upgrading of Distinguished-Service Crosses and Navy 
Crosses awarded to Asian-Americans and Native American Pacific Is-
landers for World War II service. 
Sec. 525. Eligibility for Armed Forces Expeditionary Medal based upon service in 
El Salvador. 
Sec. 526. Procedure for consideration of military decorations not previously submit-
ted in timely fashion. 
Subtitle D—Officer Education Programs 
PART I—SERVICE ACADEMIES 
Sec. 531. Revision of service obligation for graduates of the service academies. 
Sec. 532. Nominations to service academies from Commonwealth of the Northern 
Marianas Islands. 
Sec. 533. RepeaLof requirement for athletic director and nonappropriated fund ac-
count for the athletics programs at the service academies. 
Sec. 534. Repeal of requirement for program to test privatization of service acad-
emy preparatory schools. 
PART II—RESERVE OFFICER TRAINING CORPS 
Sec. 541. ROTC access to campuses. 
Sec. 542. ROTC scholarships for the National Guard. 
Sec. 543. Delay in reorganization of Army ROTC regional headquarters structure. 
Sec. 544. Duration of field training or practice cruise required under the Senior Re-
serve Officers' Training Corps program. 
Sec. 545. Active duty officers detailed to ROTC duty at senior military colleges to 
serve as Commandant and Assistant Commandant of Cadets and as tac-
tical officers. 
Subtitle E—Miscellaneous Reviews, Studies, and Reports 
•iec. 551. Report concerning appropriate forum for judicial review of Department of 
Defense personnel actions. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 191 
Sec. 552. Comptroller General review of proposed Army end strength allocations. 
Sec. 553. Report on manning status of highly deployable support units. 
Sec. 554. Review of system for correction of militair records. 
Sec. 555. Report on the consistency of reporting of fingerprint cards and final dis-
position forms to the Federal Bureau of Investigation. 
Subtitle F—Other Matters 
Sec. 561. Equalization of accrual of service credit for officers and enlisted members. 
Sec. 562. Anny Ranger training. 
Sec. 563. Separation in cases involving extended confinement. 
Sec. 564. Limitations on reductions in medical personnel. 
Sec. 565. Sense of Congress concerning personnel tempo rates. 
Sec. 566. Separation benefits during force reduction for officers of commissioned 
corps of National Oceanic and Atmospheric Administration. 
Sec. 567. Discharge of members of the Armed Forces who have the HIV-l virus. 
Sec. 568. Revision and codification of Military Family Act and Military Child Care 
Act. 
Sec. 569. Determination of whereabouts and status of missing persons. 
Sec. 570. Associate Director of Central Intelligence for Military Support. 
Subtitle G—Support for Non-Department of Defense Activities 
Sec. 571. Repeal of certain civil-military programs. 
Sec. 572. Training activities resulting in incidental support and services for eUgible 
organizations and activities outside the Department of Defense. 
Sec. 573. National Guard civilian youth opportunities pilot program. 
Sec. 574. Termination of ftinding for Office of Civil-Military Programs in Office of 
the Secretary of Defense. 
TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS 
Subtitle A—Pay and Allowances 
Sec. 601. Military pay raise for fiscal year 1996. 
Sec. 602. Limitation on basic allowance for subsistence for members residing with-
out dependents in Government quarters. 
Sec. 603. Election of basic allowance for quarters instead of assignment to inad-
equate quarters. 
Sec. 604. Payment of basic allowance for quarters to members in pay grade E-6 
who are assigned to sea duty. 
Sec. 605. Limitation on reduction of variable housing allowance for certain mem-
bers. 
Sec. 606. Clarification of limitation on eligibility for family separation allowance. 
Subtitle B—Bonuses and Special and Incentive Pays 
Sec. 611. Extension of certain bonuses for reserve forces. 
Sec. 612. Extension of certain bonuses and special pay for nurse officer candidates, 
registered nurses, and nurse anesthetists. 
Sec. 613. Extension of authority relating to payment of other bonuses and special 
pays. 
Sec. 614. Codification and extension of special pay for critically short wartime 
health specialists in the Selected Reserves. 
Sec. 615. Hazardous duty incentive pay for warrant officers and enlisted members 
serving as air weapons controllers. 
Sec. 616. Aviation career incentive pay. 
Sec. 617. Clarification of authority to provide special pay for nurses. 
Sec. 618. Continuous entitlement to career sea pay for crew members of ships des-
ignated as tenders. 
Sec. 619. Increase in maximum rate of special duty assignment pay for enlisted 
members serving as recruiters. 
Subtitle C—^Travel and Transportation Allowances 
Sec. 621. Repeal of requirement regarding calculation of allowances on basis of 
mileage tables. 
Sec. 622. Departure allowances. 
Sec. 623. Transportation of nondependent child from member's station overseas 
after loss of dependent status while overseas. 
Sec. 624. Authorization of dislocation allowance for moves in connection with base 
realignments and closures. 
Subtitle D—Retired Pay, Survivor Benefits, and Related Matters 
Sec. 631. Effective date for military retiree cost-of-living adjustments for fiscal 
years 1996, 1997, and 1998. 
110 STAT. 192 
PUBLIC LAW 104-106—FEB. 10, 1996 
Sec. 632. Denial of non-regular service retired pay for Reserves receiving certain 
coxirt-martial sentences. 
Sec. 633. Report on payment of annuities for certain military surviving spouses. 
Sec. 634. Payment of back quarters and subsistence allowances to World War II 
veterans who served as guerilla fighters in the Philippines. 
Sec. 635. Authority for relief from previous overpayments under minimum income 
widows program. 
Sec. 636. Transitional compensation for dependents of members of the Armed 
Forces separated for dependent abuse. 
Subtitle E—Other Matters 
Sec. 641. Payment to survivors of deceased members for all leave accrued. 
Sec. 642. Repeal of reporting requirements regarding compensation matters. 
Sec. 643. Recoupment of administrative expenses in garnishment actions. 
Sec. 644. Report on extending to junior noncommissioned officers privileges pro-
vided for senior noncommissioned officers. 
Sec. 645. Study regarding joint process for determining location of recruiting sta-
tions. 
Sec. 646. Automatic maximum coverage under Servicemen's Group Life Insurance. 
Sec. 647. Termination of Servicemen's Group Life Insurance for members of the 
Ready Reserve who fail to pay premiums. 
TITLE VII—HEALTH CARE PROVISIONS 
Subtitle A—Health Care Services 
Sec. 701. Modification of requirements regarding routine physical examinations and 
immunizations under CHAMPUS. 
Sec. 702. Correction of inequities in medical and dental care and death and disabil-
ity benefits for certain Reserves. 
Sec. 703. Medical care for surviving dependents of retired Reserves who die before 
age 60. 
Sec. 704. Medical and dental care for members of the Selected Reserve assigned to 
early deploying units of the Army Selected Reserve. 
Sec. 705. Dental insurance for members of the Selected Reserve. 
Sec. 706. Permanent authority to carry out specialized treatment facility program. 
Subtitle B—TRICARE Program 
Sec. 711. Definition of TRICARE program. 
Sec. 712. Priority use of military treatment facilities for persons enrolled in man-
aged care initiatives. 
Sec. 713. Staggered payment of enrollment fees for TRICARE program. 
Sec. 714. Requirement of budget neutrality for TRICARE program to be based on 
entire program. 
Sec. 715. Training in health care management and administration for TRICARE 
lead agents. 
Sec. 716. Pilot program of individualized residential mental health services. 
Sec. 717. Evaluation and report on TRICARE program effectiveness. 
Sec. 718. Sense of Congress regarding access to health care under TRICARE pro-
gram for covered beneficiaries who are medicare eligible. 
Subtitle C—Uniformed Services Treatment Facilities 
Sec. 721. Delay of termination of status of certain facilities as Uniformed Services 
Treatment Facilities. 
Sec. 722. Limitation on expenditures to support Uniformed Services Treatment Fa-
cilities. 
Sec. 723. Application of CHAMPUS pajrment rules in certain cases. 
Sec. 724. Application of Federal Acquisition Regulation to participation agreements 
with Uniformed Services Treatment Facilities. 
Sec. 725. Development of plan for integrating Uniformed Services Treatment Facili-
ties in managed care programs of Department of Defense. 
Sec. 726. Equitable implementation of uniform cost sharing requirements for Uni-
formed Services Treatment Facilities. 
Sec. 727. Elimination of unnecessary annual reporting requirement regarding Uni-
formed Services Treatment Facilities. 
Subtitle D—Other Changes to Existing Laws Regarding Health Care 
Management 
Sec. 731. Maximum allowable payments to individual health-care providers under 
CHAMPUS. 
Sec. 732. Notification of certain CHAMPUS covered beneficiaries of loss of 
CHAMPUS eligibility. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 193 
Sec. 733. Personal services contracts for medical treatment facilities of the Coast 
Guard. 
Sec. 734. Identification of third-party payer situations. 
Sec. 735. Redesignation of Military Health Care Account as Defense Health Pro-
gram Account and two-year availability of certain account funds. 
Sec. 736. Expansion of financial assistance program for health-care professionals in 
reserve components to include dental specialties. 
Sec. 737. Applicability of limitation on prices of pharmaceuticals procured for Coast 
Guard. 
Sec. 738. Restriction on use of Department of Defense facilities for abortions. 
Subtitle E—Other Matters 
Sec. 741. Triservice nursing research. 
Sec. 742. Termination of program to train military psychologists to prescribe psy-
chotropic medications. 
Sec. 743. Waiver of collection of payments due from certain persons unaware of loss 
of CHAMPUS eligibility. 
Sec. 744. Demonstration program to train military medical personnel in civilian 
shock trauma units. 
Sec. 745. Study regarding Department of Defense efforts to determine appropriate 
force levels of wartime medical personnel. 
Sec. 746. Report on improved access to military health care for covered bene-
ficiaries entitled to medicare. 
Sec. 747. Report on effect of closure of Fitzsimons Army Medical Center, Colorado, 
on provision of care to military personnel, retired military personnel, 
and their dependents. 
Sec. 748. Sense of Confess on continuity of health care services for covered bene-
ficiaries adversely affected by closiu"es of military medical treatment fa-
cilities. 
Sec. 749. State recognition of military advance medical directives. 
TITLE VIII—ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND 
RELATED MATTERS 
Subtitle A—^Acquisition Reform 
Sec. 801. Inapplicability of limitation on expenditure of appropriations to contracts 
at or below simplified acquisition threshold. 
Sec. 802. Authority to delegate contracting authority. 
Sec. 803. Control in procurements of critical aircraft and ship spare parts. 
Sec. 804. Fees for certain testing services. 
Sec. 805. Coordination and communication of defense research activities. 
Sec. 806. Addition of certain items to domestic source limitation. 
Sec. 807. Encouragement of use of leasing authority. 
Sec. 808. Cost reimbursement rules for indirect costs attributable to private sector 
work of defense contractors. 
Sec. 809. Subcontracts for ocean transportation services. 
Sec. 810. Prompt resolution of audit recommendations. 
Sec. 811. Test program for negotiation of comprehensive subcontracting plans. 
Sec. 812. Procurement of items for experimental or test purposes. 
Sec. 813. Use of funds for acquisition of designs, processes, technical data, and com-
puter software. 
Sec. 814. Independent cost estimates for major defense acquisition programs. 
Sec. 815. Construction, repair, alteration, furnishing, and equipping of naval ves-
sels. 
Subtitle B—Other Matters 
Sec. 821. Prociu-ement technical assistance programs. 
Sec. 822. Defense facility-wide pilot program. 
Sec. 823. Treatment of Department of Defense cable television franchise agree-
ments. 
Sec. 824. Extension of pilot mentor-protege program. 
TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—General Matters 
Sec. 901. Organization of the Office of the Secretary of Defense. 
Sec. 902. Reduction in number of Assistant Secretary of Defense positions. 
Sec. 903. Deferred repeal of various statutory positions and offices in Office of the 
Secretary of Defense. 
Sec. 904. Redesignation of the position of Assistant to the Secretary of Defense for 
Atomic Energy. 
110 STAT. 194 
PUBLIC LAW 104-10&—FEB. 10, 1996 
Sec. 905. Joint Requirements Oversight Council. 
Sec. 906. Restructuring of Department of Defense acquisition organization and 
workforce. 
Sec. 907. Report on Nuclear Posture Review and on plans for nuclear weapons 
management in event of abolition of Department of Energy. 
Sec. 908. Redesignation of Advanced Research Projects Agency. 
Subtitle B—Financial Management 
Sec. 911. Transfer authority regarding funds available for foreign currency fluctua-
tions. 
Sec. 912. Defense Modernization Account. 
Sec. 913. Designation and liability of disbursing and certifying officials. 
Sec. 914. Fisher House trust funds. 
Sec. 915. Limitation on use of authority to pay for emergency and extraordinary ex-
penses. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
Sec. 1001. Transfer authority. 
Sec. 1002. Incorporation of classified annex. 
Sec. 1003. Improved funding mechanisms for unbudgeted operations. 
Sec. 1004. Operation Provide Comfort. 
Sec. 1005. Operation Enhanced Southern Watch. 
Sec. 1006. Authority for obligation of certain unauthorized fiscal year 1995 defense 
appropriations. 
Sec. 1007. Authorization of prior emergency supplemental appropriations for fiscal 
year 1995. 
Sec. 1008. Authorization reductions to reflect savings from revised economic as-
sumptions. 
Subtitle B—Naval Vessels and Shipyards 
Sec. 1011. Iowa class battleships. 
. 
Sec. 1012. Transfer of naval vessels to certain foreign countries. 
Sec. 1013. Contract options for LMSR vessels. 
Sec. 1014. National Defense Reserve Fleet. 
Sec. 1015. Naval salvage facilities. 
Sec. 1016. Vessels subject to repair under phased maintenance contracts. 
Sec. 1017. Clarification of reqxurements relating to repairs of vessels. 
Sec. 1018. Sense of Congress concerning naming of amphibious ships. 
Sec. 1019. Sense of Congress concerning naming of naval vessel. 
Sec. 1020. Transfer of riverine patrol craft. 
Subtitle C—Counter-Drug Activities 
Sec. 1021. Revision and clarification of authority for Federal support of drug inter-
diction and counter-drug activities of the National Guard. 
Subtitle D—Civilian Personnel 
Sec. 1031. Management of Department of Defense civilian personnel. 
Sec. 1032. Conversion of military positions to civilian positions. 
Sec. 1033. Elimination of 120-day limitation on details of certain employees. 
Sec. 1034. Authority for civilian employees of Department of Defense to participate 
voluntarily in reductions in force. 
Sec. 1035. Authority to pay severance payments in lump sums. 
Sec. 1036. Continued health insurance coverage. 
Sec. 1037. Revision of authority for appointments of involuntarily separated mili-
tary reserve technicians. 
Sec. 1038. Wearing of uniform by National Guard technicians. 
Sec. 1039. Military leave for military reserve technicians for certain duty overseas. 
Sec. 1040. Personnel actions involving employees of nonappropriated fund instru-
mentalities. 
Sec. 1041. Coverage of nonappropriated fund employees under authority for flexible 
and compressed work schedules. 
Sec. 1042. Limitation on provision of overseas living quarters allowances for 
nonappropriated fund instrumentality employees. 
Sec. 1043. Elections relating to retirement coverage. 
Sec. 1044. Extension of temporary authority to pay civilian employees with respect 
to the evacuation from Guantanamo, Cuba. 
Subtitle E—Miscellaneous Reporting Requirements 
Sec. 1051. Report on fiscal year 1997 budget submission regairding Guard and Re-
serve components. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 195 
Sec. 1052. Report on desirability and feasibility of providing authority for use of 
funds derived from recovered losses resulting from contractor fraud. 
Sec. 1053. Report of national policy on protecting the national information infra-
structure against strategic attacks. 
Sec. 1054. Report on Department of Defense boards and commissions. 
Sec. 1055. Date for submission of annual report on special access programs. 
Subtitle F—Repeal of Certain Reporting and Other Requirements and 
Authorities 
Sec. 1061. Repeal of miscellaneous provisions of law. 
Sec. 1062. Reports required by title 10, United States Code. 
Sec. 1063. Reports required by defense authorization and appropriations Acts. 
Sec. 1064. Reports required by other provisions of law. 
Subtitle G—^Department of Defense Education Programs 
Sec. 1071. Continuation of Uniformed Sei^aces University of the Health Sciences. 
Sec. 1072. Additional graduate schools and programs at Uniformed Services Uni-
versity of the Health Sciences. 
Sec. 1073. Funding for adult education programs for military personnel and de-
pendents outside the United States. 
Sec. 1074. Assistance to local educational agencies that benefit dependents of mem-
bers of the Armed Forces and Department of Defense civilian employ-
ees. 
Sec. 1075. Sharing of personnel of Department of Defense domestic dependent 
schools and defense dependents' education system. 
Sec. 1076. Increase in reserve component Montgomery GI Bill educational assist-
ance allowance with respect to skills or specialties for which there is 
a critical shortage of personnel. 
Sec. 1077. Date for annual report on reserve component Montgomery GI Bill edu-
cational assistance program. 
Sec. 1078. Scope of education programs of Community College of the Air Force. 
Sec. 1079. Amendments to education loan repayment programs. 
Subtitle H—Other Matters 
Sec. 1081. National defense technology and industrial base, defense reinvestment, 
and defense conversion programs. 
Sec. 1082. Ammunition industrial base. 
Sec. 1083. Policy concerning excess defense industrial capacity. 
Sec. 1084. Sense of Congress concerning access to secondary school student infor-
mation for recruiting purposes. 
Sec. 1085. Disclosure of information concerning unaccounted for United States per-
sonnel from the Korean Conflict, the Vietnam era, and the Cold War. 
Sec. 1086. Operational support airlift aircraft fleet. 
Sec. 1087. Civil Reserve Air Fleet. 
Sec. 1088. Damage or loss to personal property due to emergency evacuation or ex-
traordinary circumstances. 
Sec. 1089. Authority to suspend or terminate collection actions against deceased 
members. 
Sec. 1090. Check cashing and exchange transactions for dependents of United 
States Government personnel. 
Sec. 1091. Designation of National Maritime Center. 
Sec. 1092. Sense of Congress regarding historic preservation of Midway Islands. 
Sec. 1093. Sense of Senate regarding Federal spending. 
Sec. 1094. Extension of authority for vessel war risk insurance. 
TITLE XI—UNIFORM CODE OF MILITARY JUSTICE 
Sec. 1101. Short title. 
Sec. 1102. References to Uniform Code of Military Justice. 
Subtitle A—Offenses 
Sec. 1111. Refusal to testify before court-martial. 
Sec. 1112. Flight from apprehension. 
Sec. 1113. Carnal knowledge. 
Subtitle B—Sentences 
Sec. 1121. Effiective date for forfeitures of pay and allowances and reductions in 
grade by sentence of court-martial. 
Sec. 1122. Required forfeiture of pay and allowances during confinement. 
Sec. 1123. Deferment of confinement. 
Subtitle C—Pretrial and Post-Trial Actions 
Sec. 1131. Article 32 investigations. 
110 STAT. 196 
PUBLIC LAW 104-106—FEB. 10, 1996 
Sec. 1132. Submission of matters to the convening authority for consideration. 
Sec. 1133. Commitment of accused to treatment facility by reason of lack of mental 
capacity or mental responsibility. 
Subtitle D—^Appellate Matters 
Sec. 1141. Appeals by the United States. 
Sec. 1142. Repeal of termination of authority for Chief Justice of the United States 
to designate Article III judges for temporary service on Court of Ap-
peals for the Armed Forces. 
Subtitle E—Other Matters 
Sec. 1151. Advisory committee on criminal law jurisdiction over civilians accom-
panying the Armed Forces in time of armed conflict. 
Sec. 1152. Time after accession for initial instruction in the Uniform Code of Mili-
tary Justice. 
Sec. 1153. Technical amendment. 
TITLE XII—COOPERATIVE THREAT REDUCTION WITH STATES OF 
FORMER SOVIET UNION 
Sec. 1201. Specification of Cooperative Threat Reduction programs. 
Sec. 1202. Fiscal year 1996 fiinding allocations. 
Sec. 1203. Prohibition on use of funds for peacekeeping exercises and related activi-
ties with Russia. 
Sec. 1204. Revision to authority for assistance for weapons destruction. 
Sec. 1205. Prior notice to Congress of obligation of funds. 
Sec. 1206. Report on accounting for United States assistance. 
Sec. 1207. Limitation on assistance to nuclear weapons scientists of former Soviet 
Union. 
Sec. 1208. Limitations relating to offensive biological warfare program of Russia. 
Sec. 1209. Limitation on use of funds for chemical weapons destruction facility. 
TITLE XIII—MATTERS RELATING TO OTHER NATIONS 
Subtitle A—Peacekeeping Provisions 
Sec. 1301. Limitation on use of Department of Defense funds for United States 
share of costs of United Nations peacekeeping activities. 
Subtitle B—Humanitarian Assistance Programs 
Sec. 1311. Overseas humanitarian, disaster, and civic aid programs. 
Sec. 1312. Humanitarian assistance. 
Sec. 1313. Landmine clearance program. 
Subtitle C—^Arms Exports and Military Assistance 
Sec. 1321. Defense export loan guarantees. 
Sec. 1322. National security implications of United States export control policy. 
Sec. 1323. Department of Defense review of export licenses for certain biological 
pathogens. 
Sec. 1324. Annual reports on improving export control mechanisms and on military 
assistance. 
Sec. 1325. Report on personnel requirements for control of transfer of certain weap-
ons. 
Subtitle D—Burdensharing and Other Cooperative Activities Involving 
Allies and NATO 
Sec. 1331. Accounting for burdensharing contributions. 
Sec. 1332. Authority to accept contributions for expenses of relocation within host 
nation of United States Armed Forces overseas. 
Sec. 1333. Revised goal for allied share of costs for United States installations in 
Europe. 
Sec. 1334. Exclusion of certain forces from European end strength limitation. 
Sec. 1335. Cooperative research and development agreements with NATO organiza-
tions. 
I 
Sec. 1336. Support services for the Navy at the port of Haifa, Israel. 
I 
Subtitle E—Other Matters 
• Sec. 1341. Prohibition on financial assistance to terrorist countries. 
I Sec. 1342. Judicial assistance to the International Tribunal for Yugoslavia and to 
the International Tribunal for Rwanda. 
I Sec. 1343. Semiannual reports concerning United States-People's Republic of China 
, 
Joint Defense Conversion Commission. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 197 
TITLE XTV—ARMS CONTROL MATTERS 
Sec. 1401. Revision of definition of landmine for purposes of landmine export mora-
torium. 
Sec. 1402. Reports on moratorium on use by Armed Forces of antipersonnel land-
mines. 
Sec. 1403. Extension and amendment of counter-proliferation authorities. 
Sec. 1404. Limitation on retirement or dismantlement of strategic nuclear delivery 
systems. 
Sec. 1405. Congressional findings and sense of Congress concerning treaty viola-
tions. 
Sec. 1406. Sense of Congress on ratification of Chemical Weapons Convention and 
START II Treaty. 
Sec. 1407. Implementation of arms control agreements. 
Sec. 1408. Iran and Iraq arms nonproliferation. 
TITLE XV—TECHNICAL AND CLERICAL AMENDMENTS 
Sec. 1501. Amendments related to Reserve Officer Personnel Management Act. 
Sec. 1502. Amendments to reflect name change of Committee on Armed Services of 
the House of Representatives. 
Sec. 1503. Miscellaneous amendments to title 10, United States Code. 
Sec. 1504. Miscellaneous amendments to annual defense authorization Acts. 
Sec. 1505. Miscellaneous amendments to other laws. 
Sec. 1506. Coordination with other amendments. 
TITLE XVI—CORPORATION FOR THE PROMOTION OF RIFLE PRACTICE 
AND FIREARMS SAFETY 
Sec. 1601. Short title. 
Subtitle A—^Establishment and Operation of Corporation 
Sec. 1611. Establishment of the Corporation. 
Sec. 1612. Conduct of Civilian Marksmanship Program. 
Sec. 1613. Eligibihty for participation in Civilian Marksmanship Program. 
i 
Sec. 1614. Issuance, loan, and sale of firearms and ammunition by the Corporation. 
Sec. 1615. Transfer of firearms and ammunition from the Army to the Corporation. 
Sec. 1616. Reservation by the Army of firearms and ammunition for the Corpora-
tion. 
Sec. 1617. Army logistical support for the program. 
Sec. 1618. General authorities of the Corporation. 
Sec. 1619. Distribution of Corporate assets in event of dissolution. 
Subtitle B—^Transitional Provisions 
Sec. 1621. Transfer of fiinds and property to the Corporation. 
Sec. 1622. Continuation of eligibility for certain civil service benefits for former 
Federal employees of Civilian Marksmanship Program. 
Sec. 1623. Certification of completion of transition. 
Sec. 1624. Repeal of authority for conduct of Civilian Marksmanship Program by 
the Army. 
DIVISION B—MILITARY CONSTRUCTION 
AUTHORIZATIONS 
Sec. 2001. Short title. 
TITLE XXI—ARMY 
Sec. 2101. Authorized Army construction and land acquisition projects. 
Sec. 2102. Family housing. 
Sec. 2103. Improvements to military family housing units. 
Sec. 2104. Authorization of appropriations, Army. 
TITLE XXII—NAVY 
Sec. 2201. Authorized Navy construction and land acquisition projects. 
Sec. 2202. Family housing. 
Sec. 2203. Improvements to military family housing units. 
Sec. 2204. Authorization of appropriations, Navy. 
Sec. 2205. Revision of fiscal year 1995 authorization of appropriations to clarify 
availability of funds for large anechoic chamber facility, Patuxent 
River Naval Warfare Center, Maryland. 
Sec. 2206. Authority to carry out land acquisition project, Hampton Roads, Vir-
ginia. 
110 STAT. 198 
PUBLIC LAW 104-10&—FEB. 10, 1996 
Sec. 2207. Acquisition of land, Henderson Hall, Arlington, Virginia. 
Sec. 2208. Acquisition or construction of military family housing in vicinity of San 
Diego, California. 
TITLE XXIII—AIR FORCE 
Sec. 2301. Authorized Air Force construction and land acquisition projects. 
Sec. 2302. Family housing. 
Sec. 2303. Improvements to military family housing units. 
Sec. 2304. Authorization of appropriations, Air Force. 
Sec. 2305. Retention of accrued interest on funds deposited for construction of fam-
ily housing, Scott Air Force Base, Illinois. 
TITLE XXIV—DEFENSE AGENCIES 
Sec. 2401. Authorized Defense Agencies construction and land acquisition projects. 
Sec. 2402. Military family housing private investment. 
Sec. 2403. Improvements to military family housing units. 
Sec. 2404. Energy conservation projects. 
Sec. 2405. Authorization of appropriations. Defense Agencies. 
Sec. 2406. Limitations on use of Department of Defense Base Closure Account 
1990. 
Sec. 2407. Modification of authority to carry out fiscal year 1995 projects. 
Sec. 2408. Reduction in amounts authorized to be appropriated for fiscal year 1994 
contingency construction projects. 
TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION 
INFRASTRUCTURE 
Sec. 2501. Authorized NATO construction and land acquisition projects. 
Sec. 2502. Authorization of appropriations, NATO. 
TITLE XXVI—GUARD AND RESERVE FORCES FACILITIES 
Sec. 2601. Authorized Guard and Reserve construction and land 
acquisition 
projects. 
Sec. 2602. Reduction in amount authorized to be appropriated for fiscal year 1994 
Air National Guard Projects. 
Sec. 2603. Correction in authorized uses of funds for Army National Guard projects 
in Mississippi. 
TITLE XXVII—EXPIRATION AND EXTENSION OF AUTHORIZATIONS 
Sec. 2701. Expiration of authorizations and amounts required to be specified by 
law. 
Sec. 2702. Extension of authorizations of certain fiscal year 1993 projects. 
Sec. 2703. Extension of authorizations of certain fiscal year 1992 projects. 
TITLE XXVIII—GENERAL PROVISIONS 
Subtitle A—Military Housing Privatization Initiative 
Sec. 2801. Alternative authority for construction and improvement of military hous-
ing. 
Sec. 2802. Expansion of authority for limited partnerships for development of mili-
tary family housing. 
Subtitle B—Other Military Construction Program and Military Family 
Housing Changes 
Sec. 2811. Special threshold for unspecified minor construction projects to correct 
life, health, or safety deficiencies. 
Sec. 2812. Clarification of scope of unspecified minor construction authority. 
Sec. 2813. Temporary authority to waive net floor area limitation for family hous-
ing acquired in lieu of construction. 
Sec. 2814. Reestablishment of authority to waive net floor area limitation on acqui-
sition by purchase of certain militai^ family housing. 
Sec. 2815. Temporary authority to waive limitations on space by pay grade for mili-
tary family housing units. 
Sec. 2816. Rental of family housing in foreign countries. 
Sec. 2817. Clarification of scope of report requirement on cost increases under con-
tracts for military family housing construction. 
Sec. 2818. Authority to convey damaged or deteriorated military family housing. 
Sec. 2819. Energy and water conservation savings for the Department of Defense. 
Sec. 2820. Extension of authority to enter into leases of land for special operations 
activities. 
Sec. 2821. Disposition of amounts recovered as a result of damage to real property. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 199 
Sec. 2822. Pilot program to provide interest rate buy down authority on loans for 
housing within housing shortage areas at military installations. 
Subtitle C—^Defense Base Closure and Realignment 
Sec. 2831. Deposit of proceeds from leases of property located at installations being 
closed or realigned. 
Sec. 2832. In-kind consideration for leases at installations to be closed or realigned. 
Sec. 2833. Interim leases of property approved for closure or realignment. 
Sec. 2834. Authority to lease property requiring environmental remediation at 
installations approved for closure or realignment. 
Sec. 2835. Final funding for Defense Base Closure and Realignment Commission. 
Sec. 2836. Exercise of authority delegated by the Administrator of General Serv-
ices. 
Sec. 2837. Lease back of property disposed from installations approved for closure 
or reeilignment. 
Sec. 2838. Improvement of base closure and realignment process regarding disposal 
of property. 
Sec. 2839. Agreements for certain services at installations being closed. 
Sec. 2840. Authority to transfer property at military installations to be closed to 
persons who construct or provide military family housing. 
Sec. 2841. Use of single base closure authorities for disposal of property and facili-
ties at Fort Holabird, Maryland. 
Subtitle D—^Land Conveyances Generally 
PART I—-ARMY CONVEYANCES 
Sec. 2851. Transfer of jurisdiction, Fort Sam Houston, Texas. 
Sec. 2852. Transfer of jurisdiction. Fort Bliss, Texas. 
Sec. 2853. Transfer of jurisdiction and land conveyance, Fort Devens Military Res-
ervation, Massachusetts. 
Sec. 2854. Modification of land conveyance, Fort Belvoir, Virginia. 
Sec. 2855. Land exchange, Fort Lewis, Washington. 
Sec. 2856. Land exchange, Army Reserve Center, Gainesville, Georgia. 
Sec. 2857. Land conveyance, Holston Army Ammunition Plant, Mount Carmel, 
Tennessee. 
Sec. 2858. Land conveyance, Indiana Army Ammunition Plant, Charlestown, Indi-
ana. 
Sec. 2859. Land conveyance. Fort Ord, California. 
Sec. 2860. Land conveyance. Parks Reserve Forces Training Area, Dublin, Califor-
nia. 
Sec. 2861. Land conveyance. Army Reserve Center, Youngstown, Ohio. 
Sec. 2862. Land conveyance. Army Reserve Property, Fort Sheridan, Illinois. 
Sec. 2863. Land conveyance, property underlying Cummins Apartment Complex, 
Fort Holabird, Mainland. 
Sec. 2864. Modification of existing land conveyance. Army property, Hamilton Air 
Force Base, California. 
PART II—NAVY CONVEYANCES 
Sec. 2865. Transfer of jurisdiction. Naval Weapons Industrial Reserve Plant, 
Calverton, New York. 
Sec. 2866. Modification of land conveyance. Naval Weapons Industrial Reserve 
Plant, Calverton, New York. 
Sec. 2867. Land conveyance alternative to existing lease authority. Naval Supply 
Center, Oakland, California. 
Sec. 2868. Land conveyance. Naval Weapons Industrial Reserve Plant, McGregor, 
Texas. 
Sec. 2869. Land conveyance. Naval Surface Warfare Center, Memphis, Tennessee. 
Sec. 2870. Land conveyance. Navy property. Fort Sheridan, Illinois. 
Sec. 2871. Land conveyance, Naval Communications Station, Stockton, California. 
Sec. 2872. Lease of property. Naval Air Station and Marine Corps Air Station, 
Miramar, California. 
PART III—^AiR FORCE CONVEYANCES 
Sec. 2874. Land acquisition or exchange, Shaw Air Force Base, South Carolina. 
Sec. 2875. Land conveyance, Elmendorf Air Force Base, Alaska. 
Sec. 2876. Land conveyance, Radar Bomb Scoring Site, Forsyth, Montana. 
Sec. 2877. Land conveyance. Radar Bomb Scoring Site, Powell, Wyoming. 
Sec. 2878. Land conveyance, Avon Park Air Force Range, Florida. 
Subtitle E—Land Conveyances Involving Utilities 
Sec. 2881. Conveyance of resource recovery facility. Fort Dix, New Jersey. 
110 STAT. 200 
PUBLIC LAW 104-106—FEB. 10, 1996 
Sec. 2882. Conveyance of water and wastewater treatment plants, Fort Gordon, 
Georgia. 
Sec. 2883. Conveyance of electricity distribution system, Fort Irwin, California. 
Sec. 2884. Conveyance of water treatment plant. Fort Pickett, Virginia. 
Subtitle F—Other Matters 
Sec. 2891. Authority to use funds for certain educational purposes. 
Sec. 2892. Department of Defense Laboratory Revitalization Demonstration Pro-
gram. 
Sec. 2893. Authority for Port Authority of State of Mississippi to use Navy property 
at Naval Construction Battalion Center, Gulfport, Mississippi. 
Sec. 2894. Prohibition on joint use of Naval Air Station and Marine Corps Air Sta-
tion, Miramar, California. 
Sec. 2895. Report regarding Army water craft support facilities and activities. 
Sec. 2896. Residual value reports. 
Sec. 2897. Sense of Congress and report regarding Fitzsimons Army Medical Cen-
ter, Colorado. 
TITLE XXIX—LAND CONVEYANCES INVOLVING JOLIET ARMY 
AMMUNITION PLANT, ILLINOIS 
Sec. 2901. Short title. 
Sec. 2902. Definitions. 
Subtitle A—Conversion of Joliet Army Ammunition Plant to Midewin 
National Tallgrass Prairie 
Sec. 2911. Principles of transfer. 
Sec. 2912. Transfer of management responsibilities and jurisdiction over Arsenal. 
Sec. 2913. Responsibility and liability. 
Sec. 2914. Establishment and administration of Midewin National Tallgrass Prai-
rie. 
Sec. 2915. Special management reqviirements for Midewin National Tallgrass Prai-
rie. 
Sec. 2916. Special transfer rules for certain Arsenal parcels intended for MNP. 
Subtitle B—Other Land Conveyances Involving Joliet Army Ammunition 
Plant 
Sec. 2921. Conveyance of certain real property at Arsenal for a national cemetery. 
Sec. 2922. Conveyance of certain real property at Arsenal for a county landfill. 
Sec. 2923. Conveyance of certain real property at Arsenal for industrial parks. 
Subtitle C—MisceHaneous Provisions 
Sec. 2931. Degree of environmental cleanup. 
Sec. 2932. Retention of property used for environmental cleanup. 
DIVISION C—DEPARTMENT OF ENERGY NATIONAL SE-
CURITY AUTHORIZATIONS AND OTHER AUTHORIZA-
TIONS 
TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL SECURITY 
PROGRAMS 
Subtitle A—^National Security Programs Authorizations 
Sec. 3101. Weapons activities. 
Sec. 3102. Environmental restoration and waste management. 
Sec. 3103. Other defense activities. 
Sec. 3104. Defense nuclear waste disposal. 
Subtitle B—Recurring General Provisions 
Sec. 3121. Reprogramming. 
Sec. 3122. Limits on general plant projects. 
Sec. 3123. Limits on construction projects. 
Sec. 3124. Fund transfer authority. 
Sec. 3125. Authority for conceptual and construction design. 
Sec. 3126. Authority for emergency planning, design, and construction activities. 
Sec. 3127. Funds available for all national security programs of the Department of 
Energy. 
Sec. 3128. Availability of funds. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 201 
Subtitle C—Program Authorizations, Restrictions, and Limitations 
Sec. 3131. Authority to conduct program relating to fissile materials. 
Sec. 3132. National Ignition Facility. 
Sec. 3133. Tritium production program. 
Sec. 3134. Payment of penalties. 
Sec. 3135. Fissile materials disposition. 
Sec. 3136. Tritium recycling. 
Sec. 3137. Manufacturing infrastructure for refabrication and certification of nu-
clear weapons stockpile. 
Sec. 3138. Hydronuclear experiments. 
Sec. 3139. Limitation on authority to conduct hydronuclear tests. 
Sec. 3140. Fellowship program for development of skills critical to the Department 
of Energy nuclear weapons complex. 
Sec. 3141. Limitation on use of funds for certain research and development pur-
poses. 
Sec. 3142. Processing and treatment of high-level nuclear waste and spent nuclear 
fuel rods. 
Sec. 3143. Protection of workers at nuclear weapons facilities. 
Sec. 3144. Department of Energy Declassification Productivity Initiative. 
Subtitle D—Other Matters 
Sec. 3151. Report on foreign tritium purchases. 
Sec. 3152. Study on nuclear test readiness postures. 
Sec. 3153. Master plan for the certification, stewardship, and management of war-
heads in the nuclear weapons stockpile. 
Sec. 3154. Prohibition on international inspections of Department of Energy facili-
ties unless protection of restricted data is certified. 
Sec. 3155. Review of certain documents before declassification and release. 
Sec. 3156. Accelerated schedule for environmental restoration and waste manage-
ment activities. 
Sec. 3157. Sense of Congress regarding certain environmental restoration require-
ments. 
Sec. 3158. Responsibility for Defense Programs Emergency Response Program. 
Sec. 3159. Requirements for Department of Energy weapons activities budgets for 
fiscal years after fiscal year 1996. 
Sec. 3160. Report on hydronuclear testing. 
Sec. 3161. Applicability of Atomic Energy Community Act of 1955 to Los Alamos, 
New Mexico. 
Sec. 3162. Sense of Congress regarding shipments of spent nuclear fuel. 
TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY BOARD 
Sec. 3201. Authorization. 
TITLE XXXIII—NATIONAL DEFENSE STOCKPILE 
Subtitle A—^Authorization of Disposals and Use of Funds 
Sec. 3301. Definitions. 
Sec. 3302. Authorized uses of stockpile funds. 
Sec. 3303. Disposal of chromite and manganese ores and chromium ferro and man-
ganese metal electrolytic. 
Sec. 3304. Restrictions on disposal of manganese ferro. 
Sec. 3305. Titanium initiative to support battle tank upgrade program. 
Subtitle B—Programmatic Change 
Sec. 3311. Transfer of excess defense-related materials to stockpile for disposal. 
TITLE XXXIV—NAVAL PETROLEUM RESERVES 
Subtitle A—^Administration of Naval Petroleum Reserves 
Sec. 3401. Authorization of appropriations. 
Sec. 3402. Price requirement on sale of certain petroleum during fiscal year 1996. 
Sec. 3403. Extension of operating contract for Naval Petroleum Reserve Num 
bered 1. 
Subtitle B—Sale of Naval Petroleum Reserve 
Sec. 3411. Definitions. 
Sec. 3412. Sale of Naval Petroleum Reserve Numbered 1. 
Sec. 3413. Effect of sale of reserve. 
Sec. 3414. Conditions on sale process. 
Sec. 3415. Treatment of State of California claim regarding reserve. 
29-194 O - 96 - 8 : QL 3 Part 1 
110 STAT. 202 
PUBLIC LAW 104-106—FEB. 10, 1996 
Sec. 3416. Study of future of other naval petroleum reserves. 
TITLE XXXV—PANAMA CANAL COMMISSION 
Subtitle A—^Authorization of Appropriations 
Sec. 3501. Short title. 
Sec. 3502. Authorization of expenditures. 
Sec. 3503. Expenditures in accordance with other laws. 
Subtitle B—Reconstitution of Commission as Government Corporation 
Sec. 3521. Short title. 
Sec. 3522. Reconstitution of Commission as Grovernment corporation. 
Sec. 3523. Supervisory Board. 
Sec. 3524. (General and specific powers of Commission. 
Sec. 3525. Congressional review of budget. 
Sec. 3526. Audits. 
Sec. 3527. Prescription of measurement rules and rates of tolls. 
Sec. 3528. Procedures for changes in rules of measurement and rates of tolls. 
Sec. 3529. Miscellaneous technical amendments. 
Sec. 3530. Conforming amendment to title 31, United States Code. 
DIVISION D—FEDERAL ACQUISITION REFORM 
Sec. 4001. Short title. 
TITLE XLI—COMPETITION 
Sec. 4101. Efficient competition. 
Sec. 4102. Efficient approval procedures. 
Sec. 4103. Efficient competitive range determinations. 
Sec. 4104. Preaward debriefings. 
Sec. 4105. Design-build selection procedures. 
TITLE XLII—COMMERCIAL ITEMS 
Sec. 4201. Commercial item exception to requirement for certified cost or pricing 
data. 
Sec. 4202. Application of simplified procedures to certain commercial items. 
Sec. 4203. Inapplicability of certain procurement laws to commercially available off-
the-shelf items. 
Sec. 4204. Amendment of commercial items definition. 
Sec. 4205. Inapplicability of cost accounting standards to contracts and sub-
contracts for commercial items. 
TITLE XLIII—ADDITIONAL REFORM PROVISIONS 
Subtitle A—^Additional Acquisition Reform Provisions 
Sec. 4301. Elimination of certain certification requirements. 
Sec. 4302. Authorities conditioned on FACNET capability. 
Sec. 4303. International competitiveness. 
Sec. 4304. Procurement integrity. 
Sec. 4305. Further acquisition streamlining provisions. 
Sec. 4306. Value engineering for Federal agencies. 
Sec. 4307. Acquisition workforce. 
Sec. 4308. Demonstration project relating to certain personnel management policies 
and procedures. 
Sec. 4309. Cooperative purchasing. 
Sec. 4310. Procurement notice technical amendment. 
Sec. 4311. Micro-purchases without competitive quotations. 
Subtitle B—Technical Amendments 
Sec. 4321. Amendments related to Federal Acquisition Streamlining Act of 1994. 
Sec. 4322. Miscellaneous amendments to Federal acquisition laws. 
TITLE XLIV—EFFECTIVE DATES AND IMPLEMENTATION 
Sec. 4401. Effective date and applicability. 
Sec. 4402. Implementing regulations. 
DIVISION E—INFORMATION TECHNOLOGY 
MANAGEMENT REFORM 
Sec. 5001. Short title. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 203 
Sec. 5002. Definitions. 
TITLE LI—RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION 
TECHNOLOGY 
Subtitle A—General Authority 
Sec. 5101. Repeal of central authority of the Administrator of General Services. 
Subtitle B—Director of the Office of Management and Budget 
Sec. 5111. Responsibility of Director. 
Sec. 5112. Capital planning and investment control. 
Sec. 5113. Performance-based and results-based management. 
Subtitle C—Executive Agencies 
Sec. 5121. Responsibilities. 
Sec. 5122. Capital planning and investment control. 
Sec. 5123. Performance and results-based management. 
Sec. 5124. Acquisitions of information technology. 
Sec. 5125. Agency Chief Information Officer. 
Sec. 5126. Accountability. 
Sec. 5127. Significant deviations. 
Sec. 5128. Interagency support. 
Subtitle D—Other Responsibilities 
Sec. 5131. Responsibilities regarding efficiency, security, and privacy of Federal 
computer systems. 
Sec. 5132. Sense of Congress. 
Subtitle E—National Security Systems 
Sec. 5141. Applicability to national security systems. 
Sec. 5142. National security system defined. 
TITLE LII—PROCESS FOR ACQUISITIONS OF INFORMATION 
TECHNOLOGY 
Sec. 5201. Procurement procedures. 
Sec. 5202. Incremental acquisition of information technology. 
TITLE LIII—INFORMATION TECHNOLOGY ACQUISITION PILOT 
PROGRAMS 
Subtitle A—Conduct of Pilot Programs 
Sec. 5301. Authority to conduct pilot programs. 
Sec. 5302. Evaluation criteria and plans. 
Sec. 5303. Report. 
Sec. 5304. Recommended legislation. 
Sec. 5305. Rule of construction. 
Subtitle B—Specific Pilot Programs 
Sec. 5311. Share-in-savings pilot program. 
Sec. 5312. Solutions-based contracting pilot program. 
TITLE LIV—ADDITIONAL INFORMATION RESOURCES MANAGEMENT 
MATTERS 
Sec. 5401. On-line multiple award schedule contracting. 
Sec. 5402. Identification of excess and surplus computer equipment. 
Sec. 5403. Access of certain information in information systems to the directory es-
tablished under section 4101 of title 44, United States Code. 
TITLE 
LV—PROCUREMENT 
PROTEST 
AUTHORITY 
OF 
THE 
COMPTROLLER 
GENERAL 
Sec. 5501. Period for processing protests. 
Sec. 5502. Availability of funds following GAO resolution of challenge to contract-
ing action. 
TITLE LVI—CONFORMING AND CLERICAL AMENDMENTS 
Sec. 5601. Amendments to title 10, United States Code. 
Sec. 5602. Amendments to title 28, United States Code. 
Sec. 5603. Amendment to title 31, United States Code. 
110 STAT. 204 
PUBLIC LAW 104-106—FEB. 10, 1996 
Sec. 5604. Amendments to title 38, United States Code. 
Sec. 5605. Provisions of title 44, United States Code, relating to paperwork reduc-
tion. 
Sec. 5606. Amendment to title 49, United States Code. 
Sec. 5607. Other laws. 
Sec. 5608. Clerical amendments. 
TITLE LVII—EFFECTIVE DATE, SAVINGS PROVISIONS, AND RULES OF 
CONSTRUCTION 
Sec. 5701. Effective date. 
Sec. 5702. Savings provisions. 
Sec. 5703. Exiles of construction. 
SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED. 
For purposes of this Act, the term "congressional defense 
committees" means— 
(1) the Committee on Armed Services and the Committee 
on Appropriations of the Senate; and 
(2) the Committee on National Security and the Committee 
on Appropriations of the House of Representatives. 
SEC. 4. EXTENSION OF TIME FOR SUBMISSION OF REPORTS. 
In the case of any provision of this Act, or any amendment 
made by a provision of this Act, requiring the submission of a 
report to Congress (or any committee of Congress), that report 
shall be submitted not later than the later o
f
— 
(1) the date established for submittal of the report in such 
provision or amendment; or 
(2) the date that is 45 days after the date of the enactment 
of this Act. 
DIVISION A—DEPARTMENT OF 
DEFENSE AUTHORIZATIONS 
TITLE I—PROCUREMENT 
Subtitle A—^Authorization of 
Appropriations 
SEC. 101. ARMY. 
Funds are hereby authorized to be appropriated for fiscal year 
1996 for procurement for the Army as follows: 
(1) For aircraft, $1,558,805,000. 
(2) For missiles, $865,555,000. 
(3) 
For 
weapons 
and 
tracked 
combat 
vehicles, 
$1,652,745,000. 
(4) For ammunition, $1,093,991,000. 
(5) For other procurement, $2,763,443,000. 
SEC. 
1
0
2
. 
NAVY 
AND 
MARINE 
CORPS. 
(a) NAVY.—Funds are hereby authorized to be appropriated 
for fiscal year 1996 for procurement for the Navy as follows: 
(1) For aircraft, $4,572,394,000. 
(2) For 
weapons, 
including missiles 
and 
torpedoes, 
$1,659,827,000. 
(3) For shipbuilding and conversion, $6,643,958,000. 
(4) For other procurement, $2,414,771,000. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 205 
(b) MARINE CORPS.—Funds are hereby authorized to be appro-
priated for fiscal year 1996 for procurement for the Marine Corps 
in the amount of $458,947,000. 
(c) NAVY AND MARINE CORPS AMMUNITION.—Funds are hereby 
authorized to be appropriated for procurement of ammunition for 
the Navy and the Marine Corps in the amount of $430,053,000. 
SEC. 103. AIR FORCE. 
Funds are hereby authorized to be appropriated for fiscal year 
1996 for procurement for the Air Force as follows: 
(1) For aircraft, $7,349,783,000. 
(2) For missiles, $2,938,883,000. 
(3) For ammunition, $343,848,000. 
(4) For other procurement, $6,268,430,000. 
SEC. 104. DEFENSE-WIDE ACTIVITIES. 
Funds are hereby authorized to be appropriated for fiscal year 
1996 
for 
Defense-wide 
procurement 
in 
the 
amount 
of 
$2,124,379,000. 
SEC. 105. RESERVE COMPONENTS. 
Funds are hereby authorized to be appropriated for fiscal year 
1996 for procurement of aircraft, vehicles, communications equip-
ment, and other equipment for the reserve components of the Armed 
Forces as follows: 
(1) For the Army National Guard, $160,000,000. 
(2) For the Air National Guard, $255,000,000. 
(3) For the Army Reserve, $85,700,000. 
(4) For the Naval Reserve, $67,000,000. 
(5) For the Air Force Reserve, $135,600,000. 
(6) For the Marine Corps Reserve, $73,700,000. 
SEC. 106. DEFENSE INSPECTOR GENERAL. 
Funds are hereby authorized to be appropriated for fiscal year 
1996 for procurement for the Inspector General of the Department 
of Defense in the amount of $1,000,000. 
SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM. 
There is hereby authorized to be appropriated for fiscal year 
1996 the amount of $672,250,000 for— 
(1) the destruction of lethal chemical agents and munitions 
in accordance with section 1412 of the Department of Defense 
Authorization Act, 1986 (50 U.S.C. 1521); and 
(2) the destruction of chemical warfare materiel of the 
United States that is not covered by section 1412 of such 
Act. 
SEC. 108. DEFENSE HEALTH PROGRAMS. 
Funds are hereby authorized to be appropriated for fiscal year 
1996 for the Department of Defense for procurement for carrying 
out health care programs, projects, and activities of the Department 
of Defense in the total amount of $288,033,000. 
110 STAT. 206 
PUBLIC LAW 104-106—FEB. 10, 1996 
Subtitle B—^Army Programs 
SEC. 111. PROCUREMENT OF OH-58D ARMED KIOWA WARRIOR HELI-
COPTERS. 
The prohibition in section 133(a)(2) of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
101-189; 103 Stat. 1383) does not apply to the obligation of funds 
in amounts not to exceed $140,000,000 for the procurement of 
not more than 20 OH-58D Armed Kiowa Warrior aircraft from 
funds appropriated for fiscal year 1996 pursuant to section 101. 
SEC. 112. REPEAL OF REQUIREMENTS FOR 
ARMORED VEHICLE 
UPGRADES. 
Subsection (j) of section 21 of the Arms Export Control Act 
(22 U.S.C. 2761) is repealed. 
SEC. 113. MULTIYEAR PROCUREMENT OF HELICOPTERS. 
The Secretary of the Army may, in accordance with section 
2306b of title 10, United States Code, enter into multiyear procure-
ment contracts for procurement of the following: 
(1) AH-64D Longbow Apache attack helicopters. 
(2) UH-60 Black Hawk utility helicopters. 
SEC. 114. REPORT ON AH-64D ENGINE UPGRADES. 
No later than February 1, 1996, the Secretary of the Army 
shall submit to Congress a report on plans to procure T700-701C 
engine upgrade kits for Army AH-64D helicopters. The report shall 
include— 
(1) a plan to provide for the upgrade of all Army AH-
64D helicopters with T700-701C engine kits commencing in 
fiscal year 1996; and 
(2) a detailed timeline and statement of funding require-
ments for the engine upgrade program described in paragraph 
(1). 
SEC. 
115. REQUIREMENT FOR USE OF PREVIOUSLY AUTHORIZED 
MULTIYEAR 
PROCUREMENT AUTHORITY FOR ARMY 
SMALL ARMS PROCUREMENT. 
(a) REQUIREMENT.—The Secretary of the Army (subject to the 
provision of authority in an appropriations Act) shall enter into 
a multiyear procurement contract during fiscal year 1997 in accord-
ance with section 115(b)(2) of the National Defense Authorization 
for Fiscal Year 1995 (PubHc Law 103-337; 108 Stat. 2681). 
(b) TECHNICAL AMENDMENT.—Section 115(b)(1) of the National 
Defense Authorization for Fiscal Year 1995 (Public Law 103-337; 
108 Stat. 2681) is amended by striking out "2306(h)" and inserting 
in lieu thereof "2306b". 
Subtitle C—Navy Programs 
SEC. 131. NUCLEAR ATTACK SUBMARINES. 
(a) AMOUNTS AUTHORIZED.—(1) Of the amount authorized by 
section 102 to be appropriated for Shipbuilding and Conversion, 
Navy, for fiscal year 1996— 
PUBLIC LAW 104-10&—FEB. 10, 1996 
110 STAT. 207 
(A) $700,000,000 is available for construction of the third 
vessel (designated SSN-23) in the Seawolf attack submarine 
class, which shall be the final vessel in that class; and 
(B) $804,498,000 is available for long-lead and advance 
construction and procurement of components for construction 
of the fiscal year 1998 and fiscal year 1999 submarines (pre-
viously designated by the Navy as the New Attack Submarine), 
of which— 
(i) $704,498,000 shall be available for long-lead and 
advance construction and procurement for the fiscal year 
1998 submarine, which shall be built by Electric Boat 
Division; and 
(ii) $100,000,000 shall be available for long-lead and 
advance construction and procurement for the fiscal year 
1999 submarine, which shall be built by Newport News 
Shipbuilding. 
(2) Of the amount authorized by section 201(2), $10,000,000 
shall be available only for participation of Newport News Shipbuild-
ing in the design of the submarine previously designated by the 
Navy as the New Attack Submarine. 
(b) 
COMPETITION, REPORT, AND BUDGET REVISION LIMITA-
TIONS.—(1) Of the amounts specified in subsection (a)(1), not more 
than $200,000,000 may be obligated or expended until the Secretary 
of the Navy certifies in writing to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives that procurement of nuclear attack sub-
marines to be constructed beginning— 
(A) after fiscal year 1999, or 
(B) if four submarines are procured as provided for in 
the plan described in subsection (c), after fiscal year 2001, 
will be under one or more contracts that are entered into after 
competition between potential competitors (as defined in subsection 
(k)) in which the Secretary solicits competitive proposals and awards 
the contract or contracts on the basis of price. 
(2) Of the amounts specified in subsection (a)(1), not more 
than $1,000,000,000 may be obligated or expended until the Sec-
retary of Defense, not later than March 15, 1996, accomplishes 
each of the following: 
(A) Submits to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House 
of Representatives in accordance with subsection (c) the plan 
required by that subsection for a program to produce a more 
capable, less expensive nuclear attack submarine than the sub-
marine design previously designated by the Navy as the New 
Attack Submarine. 
(B) Notwithstanding any other provision of law, or the 
funding level in the President's budget for each year after 
fiscal year 1996, the Under Secretary of Defense (Comptroller) 
shall incorporate the costs of the plan required by subsection 
(c) in the Future Years Defense Program (FYDP) even if the 
total cost of that Program exceeds the President's budget. 
(C) Directs that the Under Secretary of Defense for Acquisi-
tion and Technology conduct oversight over the development 
and improvement of the nuclear attack submarine program 
of the Navy. Officials of the Department of the Navy exercising 
management oversight of the program shall report to the Under 
110 STAT. 208 
PUBLIC LAW 104-106—FEB. 10, 1996 
Secretary of Defense for Acquisition and Technology with 
respect to that program. 
(c) PLAN FOR FISCAL YEAR 1998, 1999, 2000, AND 2001 SUB-
MARINES.—(1) The Secretary of Defense shall, not later than March 
15, 1996, develop (and submit to the committees specified in sub-
section (b)(2)(A)) a detailed plan for development of a program 
that will lead to production of a more capable, less expensive 
submarine than the submarine previously designated as the New 
Attack Submarine. 
(2) As part of such plan, the Secretary shall provide for a 
program for the design, development, and procurement of four 
nuclear attack submarines to be procured during fiscal years 1998 
through 2001, the purpose of which shall be to develop and dem-
onstrate new technologies that will result in each successive sub-
marine of those four being a more capable and more affordable 
submarine than the submarine that preceded it. The program shall 
be structured so that— 
(A) one of the four submarines is to be constructed with 
funds appropriated for each fiscal year from fiscal year 1998 
through fiscal year 2001; 
(B) in order to ensure flexibility for innovation, the fiscal 
year 1998 and the fiscal year 2000 submarines are to be con-
structed by the Electric Boat Division and the fiscal year 1999 
and the fiscal year 2001 submarines are to be constructed 
by Newport News Shipbuilding; 
(C) the design designated by the Navy for the submarine 
previously designated as the New Attack Submarine will be 
used as the base design by both contractors; 
(D) each contractor shall be called upon to propose improve-
ments, including design improvements, for each successive sub-
marine as new and better technology is demonstrated and 
matures so that— 
(i) each successive submarine is more capable and more 
affordable; and 
(ii) the design for a future class of nuclear attack 
submarines will incorporate the latest, best, and most 
affordable technology; and 
(E) the fifth and subsequent nuclear attack submarines 
to be built after the SSN-23 submarine shall be procured 
as required by subsection (b)(1). 
(3) The plan under paragraph (1) shall— 
(A) set forth a program to accomplish the design, develop-
ment, and construction of the four submarines taking maximum 
advantage of a streamlined acquisition process, as provided 
under subsection (d); 
(B) culminate in selection of a design for a next submarine 
for serial production not earlier than fiscal year 2003, with 
such submarine to be procured as required by subsection (b)(1); 
(C) identify advanced technologies that are in various 
phases of research and development, as well as those that 
are commercially available off-the-shelf, that are candidates 
to be incorporated into the plan to design, develop, and procure 
the submarines; 
(D) designate the fifth submarine to be procured as the 
lead ship in the next generation submarine class, unless the 
Secretary of the Navy, in consultation with the special sub-
marine review panel described in subsection (f), determines 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 209 
that more submarines should be built before the design of 
the new class of submarines is fixed, in which case each such 
additional submarine shall be procured in the same manner 
as is required by subsection (b)(1); and 
(E) identify the impact of the submarine program described 
in paragraph (1) on the remainder of the appropriation account 
known as "Shipbuilding and Conversion, Navy", as such impact 
relates to— 
(i) force structure levels required by the October 1993 
Department of Defense report entitled "Report on the Bot-
tom-Up Review"; 
(ii) force structure levels required by the 1995 report 
on the Surface Ship Combatant Study that was carried 
out for the Department of Defense; and 
(iii) the funding requirements for submarine construc-
tion, as a percentage of the total ship construction account, 
for each fiscal year throughout the FYDP. 
(4) As part of such plan, the Secretary shall provide— 
(A) cost estimates and schedules for developing new tech-
nologies that may be used to make submarines more capable 
and more affordable; and 
(B) an analysis of significant risks associated with fielding 
the new technologies on the schedule proposed by the Secretary 
and significant increased risks that are likely to be incurred 
by accelerating that schedule. 
(d) 
STREAMLINED ACQUISITION PROCESS.—^The Secretary 
of 
Defense shall prescribe and use streamlined acquisition policies 
and procedures to reduce the cost and increase the efficiency of 
the submarine program under this section. 
(e) ANNUAL REVISIONS TO PLAN.—The Secretary shall submit 
to the Committee on Armed Services of the Senate and the Commit-
tee on National Security of the House of Representatives an annual 
update to the plan required to be submitted under subsection (b). 
Each such update shall be submitted concurrent with the Presi-
dent's budget submission to Congress for each of fiscal years 1998 
through 2002. 
(f) SPECIAL SUBMARINE REVIEW PANEL.—(1) The plan under 
subsection (c) and each annual update under subsection (e) shall 
be reviewed by a special bipartisan congressional panel working 
with the Navy. The panel shall consist of three members of the 
Committee on Armed Services of the Senate, who shall be des-
ignated by the chairman of that committee, and three members 
of the Committee on National Security of the House of Representa-
tives, who shall be designated by the chairman of that committee. 
The members of the panel shall be briefed by the Secretary of 
the Navy on the status of the submarine modernization program 
and the status of submarine-related research and development 
under this section. 
(2) Not later than May 1 of each year, the panel shall report Reports. 
to the Committee on Armed Services of the Senate and the Commit-
tee on National Security of the House of Representatives on the 
panel's findings and recommendations regarding the progress of 
the Secretary in procuring a more capable, less expensive sub-
marine. The panel may recommend any funding adjustments it 
believes appropriate to achieve this objective. 
(g) LINKAGE OF FISCAL YEAR 1998 
AND 1999 
SUBMARINES.— 
Funds referred to in subsection (a)(1)(B) that are available for 
110 STAT. 210 
PUBLIC LAW 104-106—FEB. 10, 1996 
the fiscal year 1998 and fiscal year 1999 submarines under this 
section may not be expended during fiscal year 1996 for the fiscal 
year 1998 submarine (other than for design) unless funds are obli-
gated or expended during such fiscal year for a contract in support 
of procurement of the fiscal year 1999 submarine. 
(h) CONTRACTS AUTHORIZED.—The Secretary of the Navy is 
authorized, using funds available pursuant to paragraph (1)(B) 
of subsection (a), to enter into contracts with Electric Boat Division 
and Newport News Shipbuilding, and suppliers of components, dur-
ing fiscal year 1996 for— 
(1) the procurement of long-lead components for the fiscal 
year 1998 submarine and the fiscal year 1999 submarine under 
this section; and 
(2) advance construction of such components and other 
components for such submarines. 
(i) ADVANCED RESEARCH PROJECTS AGENCY DEVELOPMENT OF 
ADVANCED TECHNOLOGIES.—(1) Of the amount provided in section 
201(4) for the Advanced Research Projects Agency, $100,000,000 
is available only for development and demonstration of advanced 
technologies for incorporation into the submarines constructed as 
part of the plan developed under subsection (c). Such advanced 
technologies shall include the following: 
(A) Electric drive. 
(B) Hydrodynamic quieting. 
(C) Ship control automation. 
(D) Solid-state power electronics. 
(E) Wake reduction technologies. 
(F) Superconductor technologies. 
(G) Torpedo defense technologies. 
(H) Advanced control concept. 
(I) Fuel cell technologies. 
(J) Propulsors. 
(2) The Director of the Advanced Research Projects Agency 
shall implement a rapid prototype acquisition strategy for both 
land-based and at-sea subsystem and system demonstrations of 
advanced technologies under paragraph (1). Such acquisition strat-
egy shall be developed and implemented in concert with Electric 
Boat Division and Newport News Shipbuilding and the Navy. 
(j) REFERENCES TO CONTRACTORS.—For purposes of this sec-
tion— 
(1) the contractor referred to as "Electric Boat Division" 
is the Electric Boat Division of the General Dynamics Corpora-
tion; and 
(2) the contractor referred to as "Newport News Shipbuild-
ing" is the Newport News Shipbuilding and Drydock Company. 
(k) POTENTIAL COMPETITOR DEFINED.—For purposes of this sec-
tion, the term "potential competitor" means any source to which 
the Secretary of the Navy has awarded, within 10 years before 
the date of the enactment of this Act, a contract or contracts 
to construct one or more nuclear attack submarines. 
SEC. 132. RESEARCH FOR ADVANCED SUBMARINE TECHNOLOGY. 
Of the amount appropriated for fiscal year 1996 for the National 
Defense Sealift Fund, $50,000,000 shall be available only for the 
Director of the Advanced Research Projects Agency for advanced 
submarine technology activities. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 211 
SEC. 133. COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM. 
(a) LIMITATION OF COSTS.—Except as provided in subsection 
(b), the total amount obligated or expended for procurement of 
the SSN-21, SSN-22, and SSN-23 Seawolf class submarines may 
not exceed $7,223,659,000. 
(b) AUTOMATIC INCREASE OF LIMITATION AMOUNT.—The amount 
of the limitation set forth in subsection (a) is increased by the 
following amounts: 
(1) The amounts of outfitting costs and post-delivery costs 
incurred for the submarines referred to in such subsection. 
(2) The amounts of increases in costs attributable to eco-
nomic inflation after September 30, 1995. 
(3) The amounts of increases in costs attributable to compli-
ance with changes in Federal, State, or local laws enacted 
after September 30, 1995. 
(c) REPEAL OF SUPERSEDED PROVISION.—Section 122 
of 
the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 108 Stat. 2682) is repealed. 
SEC. 134. REPEAL OF PROHIBITION ON BACKFIT OF TRIDENT SUB-
MARINES. 
Section 124 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2683) is repealed. 
SEC. 135. ARLEIGH BURKE CLASS DESTROYER PROGRAM. 
(a) AUTHORIZATION FOR PROCUREMENT OF SIX VESSELS.—The 
Secretary of the Navy is authorized to construct six Arleigh Burke 
class destroyers in accordance with this section. Within the amount 
authorized to be appropriated pursuant to section 102(a)(3), 
$2,169,257,000 is authorized to be appropriated for construction 
(including advance procurement) for the Arleigh Burke class 
destroyers. 
(b) CONTRACTS.—(1) The Secretary is authorized to enter into 
contracts in fiscal year 1996 for the construction of three Arleigh 
Burke class destroyers. 
(2) The Secretary is authorized, in fiscal year 1997, to enter 
into contracts for the construction of the other three Arleigh Burke 
class destroyers covered by subsection (a), subject to the availability 
of appropriations for such destroyers. 
(3) In awarding contracts for the six vessels covered by sub-
section (a), the Secretary shall continue the contract award pattern 
and sequence used by the Secretary for the procurement of Arleigh 
Burke class destroyers during fiscal years 1994 and 1995. 
(4) A contract for construction of a vessel or vessels that is 
entered into in accordance with paragraph (1) shall include a clause 
that limits the liability of the Government to the contractor for 
any termination of the contract. The maximum liability of the 
Government under the clause shall be the amount appropriated 
for the vessel or vessels. 
(c) USE OF AVAILABLE FUNDS.—(1) Subject to paragraph (2), 
the Secretary may take appropriate actions to use for full funding 
of a contract entered into in accordance with subsection (b)— 
(A) any funds that, having been appropriated for shipbuild-
ing and conversion programs of the Navy other than Arleigh 
Burke class destroyer programs pursuant to the authorization 
in section 102(a)(3), become excess to the needs of the Navy 
110 STAT. 212 
PUBLIC LAW 104-106—FEB. 10, 1996 
for such programs by reason of cost savings achieved for such 
programs; 
(B) any unobligated funds that are available to the Sec-
retary for shipbuilding and conversion for any fiscal year before 
fiscal year 1996; and 
(C) any funds that are appropriated after the date of the 
enactment of the Department of Defense Appropriations Act, 
1996, to complete the full funding of the contract. 
(2) The Secretary may not, in the exercise of authority provided 
in subparagraph (A) or (B) of paragraph (1), obligate funds for 
a contract entered into in accordance with subsection (b) until 
30 days after the date on which the Secretary submits to the 
congressional defense committees in writing a notification of the 
intent to obligate the funds. The notification shall set forth the 
source or sources of the funds and the amount of the funds from 
each such source that is to be so obligated. 
SEC. 136. ACQUISITION PROGRAM FOR CRASH ATTENUATING SEATS. 
(a) PROGRAM AUTHORIZED.—^The Secretary of the Navy shall 
establish a program to procure for, and install in, H-53E military 
transport helicopters commercially developed, energy absorbing, 
crash attenuating seats that the Secretary determines are consistent 
with military specifications for seats for such helicopters. 
(b) FUNDING.—To the extent provided in appropriations Acts, 
of the unobligated balance of amounts appropriated for the Legacy 
Resource Management Program pursuant to the authorization of 
appropriations in section 301(5) of the National Defense Authoriza-
tion Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2706), 
not more than $10,000,000 shall be available to the Secretary 
of the Navy, by transfer to the appropriate accounts, for carrying 
out the program authorized in subsection (a). 
SEC. 137. T-39N TRAINER AIRCRAFT. 
(a) LIMITATION.—^The Secretary of the Navy may not enter 
into a contract, using funds appropriated for fiscal year 1996 for 
procurement of aircraft for the Navy, for the acquisition of the 
aircraft described in subsection (b) until 60 days after the date 
on which the Under Secretary of Defense for Acquisition and Tech-
nology submits to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representa-
tives— 
(1) an analysis of the proposed acquisition of such aircraft; 
and 
(2) a certification that the proposed acquisition during fiscal 
year 1996 (A) is in the best interest of the Government, and 
(B) is the most cost effective means of meeting the requirements 
of the Navy for aircraft for use in the training of naval flight 
officers. 
(b) COVERED AIRCRAFT.—Subsection (a) applies to certain T-
39 trainer aircraft that as of November 1, 1995 (1) are used by 
the Navy under a lease arrangement for the training of naval 
flight officers, and (2) are offered for sale to the Government. 
SEC. 138. PIONEER UNMANNED AERIAL VEHICLE PROGRAM. 
Not more than one-sixth of the amount appropriated pursuant 
to this Act for the activities and operations of the Unmanned 
Aerial Vehicle Joint Program Office (UAV-JPO), and none of the 
unobligated balances of funds appropriated for fiscal years before 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 213 
fiscal year 1996 for the activities and operations of such office, 
may be obhgated until the Secretary of the Navy certifies to the 
Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives that funds 
have been obligated to equip nine Pioneer Unmanned Aerial Vehicle 
systems with the Common Automatic Landing and Recovery System 
(CARS). 
Subtitle D—^Air Force Programs 
SEC. 141. B-2 AIRCRAFT PROGRAM. 
(a) REPEAL OF LIMITATIONS.—The following provisions of law 
are repealed: 
(1) Section 151(c) of the National Defense Authorization 
Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2339). 
(2) Sections 131(c) and 131(d) of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
107 Stat. 1569). 
(3) Section 133(e) of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2688). 
(b) CONVERSION OF LIMITATION TO ANNUAL REPORT REQUIRE-
MENT.—Section 112 of the National Defense Authorization Act for 
Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1373) 
is amended— 
(1) by striking oiit subsection (a); 
(2) by striking out the matter in subsection (b) preceding 
paragraph (1) and inserting in lieu thereof the following: 
"(a) ANNUAL REPORTING REQUIREMENT.—Not later than March 
1 of each year, the Secretary of Defense shall submit to the Commit-
tee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report that sets forth 
the finding of the Secretary (as of January 1 of such year) on 
each of the following matters:"; 
(3) by striking out "That" in paragraphs (1), (2), (3), (4), 
and (5) and inserting in lieu thereof "Whether"; 
(4) in paragraph (1), by striking out "latest" and all that 
follows through "100-180" and inserting in lieu thereof 
"Requirements Correlation Matrix found in the user-defined 
Operational Requirements Document (as contained in Attach-
ment B to a letter from the Secretary of Defense to Congress 
dated October 14, 1993)"; 
(5) in paragraph (3), by striking out "congressional defense"; 
(6) in paragraph (4), by striking out "such certification 
to be submitted"; 
(7) by adding at the end the following: 
"(b) FIRST REPORT.—^The Secretary shall submit the first annual 
report under subsection (a) not later than March 1, 1996."; and 
(8) by amending the section heading to read as follows: 
"SEC. 112. ANNUAL REPORT ON B-2 BOMBER AIRCRAFT PROGRAM.". 
(c) 
REPEAL 
OF CONDITION ON OBLIGATION OF FUNDS IN 
ENHANCED BOMBER CAI>ABILITY FUND.—Section 133(d)(3) of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 108 Stat. 2688) is amended by striking out "If," 
and all that follows through "bombers, the Secretary" and inserting 
in lieu thereof "The Secretary". 
110 STAT. 214 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 142. PROCUREMENT OF B-2 BOMBERS. 
Of the amount authorized to be appropriated by section 103 
for the B-2 bomber procurement 
program, not more 
than 
$279,921,000 may be obUgated or expended before March 31, 1996. 
SEC. 143. MC-130H AIRCRAFT PROGRAM. 
The Umitation on the obUgation of funds for payment of an 
award fee and the procurement of contractor-furnished equipment 
for the MC-130H Combat Talon aircraft set forth in section 161(a) 
of the National Defense Authorization Act for Fiscal Years 1990 
and 1991 (Pubhc Law 101-189; 103 Stat. 1388) shall cease to 
apply upon determination by the Director of Operational Test and 
Evaluation (and submission of a certification of that determination 
to the congressional defense committees) that, based on the oper-
ational test and evaluation and the analysis conducted on that 
aircraft to the date of that determination, such aircraft is operation-
ally effective and meets the needs of its intended users. 
Subtitle E—Chemical Demilitarization 
Programi 
SEC. 151. REPEAL OF REQUIREMENT TO PROCEED EXPEDITIOUSLY 
WITH DEVELOPMENT OF CHEMICAL DEMILITARIZATION 
CRYOFRACTURE FACILITY AT TOOELE ARMY DEPOT, 
UTAH. 
Subsection (a) of section 173 of the National Defense Authoriza-
tion Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 
103 Stat. 1393) is repealed. 
50 u s e 1521 
SEC. 152. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMI-
note 
CAL AGENTS AND MUNITIONS. 
(a) IN GENERAL.—The Secretary of Defense shall proceed with 
the program for destruction of the chemical munitions stockpile 
of the Department of Defense while maintaining the maximum 
protection of the environment, the general public, and the personnel 
involved in the actual destruction of the munitions. In carrying 
out such program, the Secretary shall use technologies and proce-
dures that will minimize the risk to the public at each site. 
(b) INITIATION OF DEMILITARIZATION OPERATIONS.—The Sec-
retary of Defense may not initiate destruction of the chemical 
munitions stockpile stored at a site until the following support 
measures are in place: 
(1) Support measures that are required by Department 
of Defense and Army chemical surety and security program 
regulations. 
(2) Support measures that are required by the general 
and site chemical munitions demilitarization plans specific to 
that installation. 
(3) Support measures that are required by the permits 
required by the Solid Waste Disposal Act (42 U.S.C. 6901 
et seq.) and the Clean Air Act (42 U.S.C. 7401 et seq.) for 
\ 
chemical munitions demilitarization operations at that installa-
^ 
tion, as approved by the appropriate State regulatory agencies. 
(c) 
ASSESSMENT OF 
ALTERNATIVES.—(1) 
The 
Secretary 
of 
Defense shall conduct an assessment of the current chemical demili-
tarization program and of measures that could be taken to reduce 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 215 
significantly the total cost of the program, while ensuring maximum 
protection of the general public, the personnel involved in the 
demilitarization program, and the environment. The measures 
considered shall be limited to those that would minimize the risk 
to the public. The assessment shall be conducted without regard 
to any limitation that would otherwise apply to the conduct of 
such an assessment under any provision of law. 
(2) The assessment shall be conducted in coordination with 
the National Research Council. 
(3) Based on the results of the assessment, the Secretary shall 
develop appropriate recommendations for revision of the chemical 
demilitarization program. 
(4) Not later than March 1, 1996, the Secretary of Defense Reports, 
shall submit to the congressional defense committees an interim 
report assessing the current status of the chemical stockpile demili-
tarization program, including the results of the Army's analysis 
of the physical and chemical integrity of the stockpile and implica-
tions for the chemical demilitarization program, and providing rec-
ommendations for revisions to that program that have been included 
in the budget request of the Department of Defense for fiscal 
year 1997. The Secretary shall submit to the congressional defense 
committees with the submission of the budget request of the Depart-
ment of Defense for fiscal year 1998 a final report on the assessment 
conducted in accordance with paragraph (1) and recommendations 
for revision to the program, including an assessment of alternative 
demilitarization technologies and processes to the baseline inciner-
ation process and potential reconfiguration of the stockpile that 
should be incorporated in the program. 
(d) ASSISTANCE FOR CHEMICAL WEAPONS STOCKPILE COMMU-
NITIES AFFECTED BY BASE CLOSURE.—(1) The Secretary of Defense 
shall review and evaluate issues associated with closure and 
reutilization of Department of Defense facilities co-located with 
continuing chemical stockpile and chemical demilitarization oper-
ations. 
(2) The review shall include the following: 
(A) An analysis of the economic impacts on these commu-
nities and the unique reuse problems facing local communities 
associated with ongoing chemical weapons programs. 
(B) Recommendations of the Secretary on methods for 
expeditious and cost-effective transfer or lease of these facilities 
to local communities for reuse by those communities. 
(3) The Secretary shall submit to the congressional defense Reports, 
committees a report on the review and evaluation under this sub-
section. The report shall be submitted not later than 90 days 
after the date of the enactment of this Act. 
SEC. 153. ADMINISTRATION OF CHEMICAL DEMILITARIZATION PRO-
GRAM. 
(a) TRAVEL FUNDING FOR MEMBERS OF CHEMICAL DEMILITARIZA-
TION CITIZENS' ADVISORY COMMISSIONS.—Section 172(g) of Public 
Law 102-484 (50 U.S.C. 1521 note) is amended to read as follows: 
"(g) PAY AND EXPENSES.—Members of each commission shall 
receive no pay for their involvement in the activities of their 
commissions. Funds appropriated for the Chemical Stockpile 
Demilitarization Program may be used for travel and associated 
travel costs for Citizens' Advisory Commissioners, when such travel 
110 STAT. 216 
PUBLIC LAW 104-106—FEB. 10, 1996 
is conducted at the invitation of the Assistant Secretary of the 
Army (Research, Development, and Acquisition).". 
(b) QUARTERLY REPORT CONCERNING TRAVEL FUNDING FOR CITI-
ZENS' ADVISORY COMMISSIONERS.—Section 1412(g) of the Depart-
ment of Defense Authorization Act, 1986 (50 U.S.C. 1521(g)), is 
amended— 
(1) by striking out "(g) ANNUAL REPORT.—" and inserting 
in Heu thereof "(g) PERIODIC REPORTS.—"; 
(2) in paragraph (2)— 
(A) by striking out "Each such report shall con-
tain—" and inserting in lieu thereof "Each annual report 
shall contain—" 
(B) in subparagraph (B)— 
(i) by striking out "and" at the end of clause (iv); 
(ii) by striking out the period at the end of clause 
(v) and inserting in lieu thereof"; and"; and 
(iii) by adding at the end the following: 
"(vi) travel and associated travel costs for Citizens' 
Advisory Commissioners under section 172(g) of Public Law 
102-484 (50 U.S.C. 1521 note)."; 
(3) by redesignating paragraph (3) as paragraph (4); 
(4) by inserting after paragraph (2) the following new para-
graph (3): 
"(3) The Secretary shall transmit to the Committee on Armed 
Services and the Committee on Appropriations of the Senate and 
the Committee on National Security and the Committee on Appro-
priations of the House of Representatives a quarterly report contain-
ing an accounting of all funds expended (during the quarter covered 
by the report) for travel and associated travel costs for Citizens' 
Advisory Commissioners under section 172(g) of Public Law 102-
484 (50 U.S.C. 1521 note). The quarterly report for the final quarter 
of the period covered by a report under paragraph (1) may be 
included in that report."; and 
(5) in paragraph (4), as redesignated by paragraph (3)— 
(A) by striking out "this subsection" and inserting in 
lieu thereof "paragraph (1)"; and 
(B) by adding at the end the following: "No quarterly 
report is required under paragraph (3) after the transmittal 
of the final report under paragraph (1).". 
(c) DIRECTOR OF PROGRAM.—Section 1412(e)(3) of the Depart-
ment of Defense Authorization Act, 1986 (50 U.S.C. 1521(e)(3)), 
is amended by inserting "or civilian equivalent" after "general 
officer". 
TITLE II—RESEARCH, DEVELOPMENT, 
TEST, AND EVALUATION 
Subtitle A—^Authorization of 
Appropriations 
SEC. 201. AUTHORIZATION OF APPROPRIATIONS. 
Funds are hereby authorized to be appropriated for fiscal year 
1996 for the use of the Department of Defense for research, develop-
ment, test, and evaluation as follows: 
(1) For the Army, $4,737,581,000. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 217 
(2) For the Naw, $8,474,783,000. 
(3) For the Air Force, $12,914,868,000. 
(4) For Defense-wide activities, $9,693,180,000, of which— 
(A) $251,082,000 is authorized for the activities of the 
Director, Test and Evaluation; and 
(B) $22,587,000 is authorized for the Director of Oper-
ational Test and Evaluation. 
SEC. 202. AMOUNT FOR BASIC RESEARCH AND EXPLORATORY DEVEL-
OPMENT. 
(a) FISCAL YEAR 1996.—Of the amounts authorized to be appro-
priated by section 201, $4,088,879,000 shall be available for basic 
research and explorator}'^ development projects. 
(b) 
BASIC 
RESEARCH 
AND 
EXPLORATORY 
DEVELOPMENT 
DEFINED.—For purposes of this section, the term "basic research 
and exploratory development" means work funded in program ele-
ments for defense research and development under Department 
of Defense category 6.1 or 6.2. 
SEC. 203. MODIFICATIONS 
TO 
STRATEGIC 
ENVIRONMENTAL 
RESEARCH AND DEVELOPMENT PROGRAM. 
(a) COUNCIL MEMBERSHIP.—Section 2902(b) of title 10, United 
States Code, is amended— 
(1) by striking out "thirteen" and inserting in lieu thereof 
"12"; 
(2) by striking out paragraph (3); 
(3) by redesignating paragraphs (4), (5), (6), (7), (8), (9), 
and (10) as paragraphs (3), (4), (5), (6), (7), (8), and (9), respec-
tively; and 
(4) in paragraph (8), as redesignated, by striking out ", 
who shall be nonvoting members". 
(b) ANNUAL REPORT.--(1) Section 2902 of such title is amended 
in subsection (d)— 
(A) by striking out paragraph (3) and inserting in lieu 
thereof the following: 
"(3) To prepare an annual report that contains the follow-
ing: 
"(A) A description of activities of the strategic environ-
mental research and development program carried out dur-
ing the fiscal year before the fiscal year in which the 
report is prepared. 
"(B) A general outline of the activities planned for 
the program during the fiscal year in which the report 
is prepared. 
"(C) A summary of projects continued from the fiscal 
year before the fiscal year in which the report is prepared 
and projects expected to be started during the fiscal year 
in which the report is prepared and during the following 
fiscal year."; and 
(B) in paragraph (4), by striking out "Federal Coordinating 
Council on Science, Engineering, and Technology" and inserting 
in lieu thereof "National Science and Technology Council". 
(2) Section 2902 of such title is further amended— 
(A) by striking out subsections (f) and (h); 
(B) by redesignating subsection (g) as subsection (f); and 
(C) by adding at the end the following new subsection: 
110 STAT. 218 
PUBLIC LAW 104-106—FEB. 10, 1996 
10 use 2902 
note. 
Effective date. 
10 use 2903 
note. 
"(g)(1) Not later than February 1 of each year, the Council 
shall submit to the Secretary of Defense the annual report prepared 
pursuant to subsection (d)(3). 
"(2) Not later than March 15 of each year, the Secretary of 
Defense shall submit such annual report to Congress, along with 
such comments as the Secretary considers appropriate.". 
(3) The amendments made by this subsection shall apply with 
respect to the annual report prepared during fiscal year 1997 and 
each fiscal year thereafter. 
(c) POLICIES AND PROCEDURES.—Section 2902(e) of such title 
is amended in paragraph (3) by striking out "programs, particularly" 
and all that follows through the end of the paragraph and inserting 
in lieu thereof "programs;". 
(d) COMPETITIVE PROCEDURES.—Section 2903(c) of such title 
is amended— 
(1) by striking out "or" after "contracts" and inserting in 
lieu thereof "using competitive procedures. The Executive Direc-
tor may enter into"; and 
(2) by striking out "law, except that" and inserting in 
lieu thereof "law. In either case,". 
(e) CONTINUATION OF EXPIRING AUTHORITY.—(1) Section 2903(d) 
of such title is amended in paragraph (2) by striking out the 
last sentence. 
(2) The amendment made by paragraph (1) shall take effect 
as of September 29, 1995. 
SEC. 204. DEFENSE DUAL USE TECHNOLOGY INITLVTIVE. 
(a) FISCAL YEAR 1996 AMOUNT.—Of the amount authorized 
to be appropriated in section 201(4), $195,000,000 shall be available 
for the defense dual use technology initiative conducted under chap-
ter 148 of title 10, United States Code. 
(b) 
AVAILABILITY 
OF 
FUNDS 
FOR 
EXISTING 
TECHNOLOGY 
REINVESTMENT PROJECTS.—The Secretary of Defense shall use 
amounts made available for the defense dual use technology initia-
tive under subsection (a) only for the purpose of continuing or 
completing technology reinvestment projects that were initiated 
before October 1, 1995. 
(c) NOTICE CONCERNING PROJECTS TO BE CARRIED OUT.—Of 
the amounts made available for the defense dual use technology 
initiative under subsection (a)— 
(1) $145,000,000 shall be available for obligation only after 
the date on which the Secretary of Defense notifies the congres-
sional defense committees regarding the defense reinvestment 
projects to be funded using such funds; and 
(2) the remaining $50,000,000 shall be available for obliga-
tion only after the date on which the Secretary of Defense 
certifies to the congressional defense committees that the 
defense reinvestment projects to be funded using such funds 
have been determined by the Joint Requirements Oversight 
Council to be of significant military priority. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 219 
Subtitle B—Program Requirements, 
Restrictions, and Limitations 
SEC. 211. SPACE LAUNCH MODERNIZATION. 
(a) ALLOCATION OF FUNDS.—Of the amount authorized to be 
appropriated pursuant to the authorization in section 201(3), 
$50,000,000 shall be available for a competitive reusable rocket 
technology program. 
(b) LIMITATION.—Funds made available pursuant to subsection 
(a)(1) may be obligated only to the extent that the fiscal year 
1996 current operating plan of the National Aeronautics and Space 
Administration allocates at least an equal amount for its Reusable 
Space Launch program. 
SEC. 212. TACTICAL MANNED RECONNAISSANCE. 
(a) LIMITATION.—^None of the amounts appropriated or other-
wise made available pursuant to an authorization in this Act may 
be used by the Secretary of the Air Force to conduct research, 
development, test, or evaluation for a replacement aircraft, pod, 
or sensor payload for the tactical manned reconnaissance mission 
until the report required by subsection (b) is submitted to the 
congressional defense committees. 
(b) REPORT.—The Secretary of the Air Force shall submit to 
the congressional defense committees a report setting forth in detail 
information about the manner in which the funds authorized by 
section 201 of this Act and section 201 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2690) are planned to be used during fiscal year 1996 for 
research, development, test, and evaluation for the Air Force tactical 
manned reconnaissance mission. At a minimum, the report shall 
include the sources, by program element, of the funds and the 
purposes for which the funds are planned to be used. 
SEC. 213. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM. 
(a) ALLOCATION OF FUNDS.—Of the amounts authorized to be 
appropriated pursuant to the authorizations in section 201, 
$200,156,000 shall be available for the Joint Advanced Strike Tech-
nology (JAST) program. Of that amount— 
(1) $83,795,000 shall be available for program element 
63800N in the budget of the Department of Defense for fiscal 
year 1996; 
(2) $85,686,000 shall be available for program element 
63800F in such budget; and 
(3) $30,675,000 shall be available for program element 
63800E in such budget. 
(b) ADDITIONAL ALLOCATION.—Of the amounts made available 
under paragraphs (1), (2), and (3) of subsection (a)— 
(1) $25,000,000 shall be available from the amount author-
ized to be appropriated pursuant to the authorization in section 
201(2) for the conduct, during fiscal year 1996, of a 6-month 
program definition phase for the A/F117X, an F-117 fighter 
aircraft modified for use by the Navy as a long-range, medium 
attack aircraft; and 
(2) $7,000,000 shall be available to provide for competitive 
engine concepts. 
110 STAT. 220 
PUBLIC LAW 104-106—FEB. 10, 1996 
(c) LIMITATION.—Not more than 75 percent of the amount 
appropriated for the Joint Advanced Strike Technology program 
pursuant to the authorizations in section 201 may be obUgated 
until a period of 30 days has expired after the report required 
by subsection (d) is submitted to the congressional defense commit-
tees. 
(d) REPORT.—^The Secretary of Defense shall submit to the 
congressional defense committees a report, in unclassified and 
classified forms, not later than March 1, 1996, that sets forth 
in detail the following information for the period 1997 through 
2005: 
(1) The total joint requirement, assuming the capability 
to successfully conduct two nearly simultaneous major regional 
contingencies, for the following: 
(A) Numbers of bombers, tactical combat aircraft, and 
attack helicopters and the characteristics required of those 
aircraft in terms of capabilities, range, and low-observ-
ability. 
(B) Surface- and air-launched standoff precision guided 
munitions. 
(C) Cruise missiles. 
(D) Ground-based systems, such as the Extended 
Range-Multiple Launch Rocket System and the Army Tac-
tical Missile System (ATACMS), for joint warfighting 
capability. 
(2) The warning time assumptions for two nearly simulta-
neous major regional contingencies, and the effects on future 
tactical attack/fighter aircraft requirements using other warn-
ing time assumptions. 
(3) The requirements that exist for the Joint Advanced 
Strike Technology program that cannot be met by existing 
aircraft or by those in development. 
SEC. 214. DEVELOPMENT OF LASER PROGRAM. 
Of the amount authorized to be appropriated by section 201(2), 
$9,000,000 shall be used for the development by the Naval High 
Energy Laser Office of a continuous wave, superconducting radio 
frequency free electron laser program. 
SEC. 215. NAVY MINE COUNTERMEASURES PROGRAM. 
Section 216(a) of the National Defense Authorization Act for 
Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1317) 
is amended— 
(1) by striking out "Director, Defense Research and 
Engineering" and inserting in lieu thereof "Under Secretary 
of Defense for Acquisition and Technology"; and 
(2) by striking out "fiscal years 1995 through 1999" and 
inserting in lieu thereof "fiscal years 1996 through 1999". 
SEC. 216. SPACE-BASED INFRARED SYSTEM. 
(a) PROGRAM BASELINE.—^The Secretary of Defense shall estab-
lish a program baseline for the Space-Based Infrared System. Such 
baseline shall— 
(1) include— 
(A) program cost and an estimate of the funds required 
for development and acquisition activities for each fiscal 
year in which such activities are planned to be carried 
out; 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 221 
(B) a comprehensive schedule with program milestones 
and exit criteria; and 
(C) optimized performance parameters for each seg-
ment of an integrated space-based infrared system; 
(2) be structured to achieve initial operational capability 
of the low earth orbit space segment (the Space and Missile 
Tracking System) in fiscal year 2003, with a first launch of 
Block I satellites in fiscal year 2002; 
(3) ensure integration of the Space and Missile Tracking 
System into the architecture of the Space-Based Infrared Sys-
tem; and 
(4) ensure that the performance parameters of all space 
segment components are selected so as to optimize the perform-
ance of the Space-Based Infrared System while minimizing 
unnecessary redundancy and cost. 
(b) REPORT ON PROGRAM BASELINE.—Not later than 60 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a report, 
in classified and unclassified forms as necessary, on the program 
baseline established under subsection (a). 
(c) ESTABLISHMENT OF PROGRAM ELEMENTS.—In the budget 
justification materials submitted to Congress in support of the 
Department of Defense budget for any fiscal year after fiscal year 
1996 (as submitted in the budget of the President under section 
1105(a) of title 31, United States Code), the amount requested 
for the Space-Based Infrared System shall be set forth in accordance 
with the following program elements: 
(1) Space Segment High. 
(2) Space Segment Low (Space and Missile Tracking Sys-
tem). 
(3) Ground Segment. 
(d) FUNDING FOR FISCAL YEAR 1996.—Of the amounts author-
ized to be appropriated pursuant to section 201(3) for fiscal year 
1996, or otherwise made available to the Department of Defense 
for fiscal year 1996, the following amounts shall be available for 
the Space-Based Infrared System: 
(1) $265,744,000 for demonstration and validation, of which 
$249,824,000 shall be available for the Space and Missile Track-
ing System. 
(2) $162,219,000 for engineering and manufacturing devel-
opment, of which $9,400,000 shall be available for the Miniature 
Sensor Technology Integration program. 
SEC. 217. DEFENSE NUCLEAR AGENCY PROGRAMS. 
(a) AGENCY FUNDING.—Of the amounts authorized to be appro-
priated to the Department of Defense in section 201, $241,703,000 
shall be available for the Defense Nuclear Agency. 
(b) TUNNEL CHARACTERIZATION AND NEUTRALIZATION PRO-
GRAM.—Of the amount made available under subsection (a), 
$3,000,000 shall be available for a tunnel characterization and 
neutralization program to be managed by the Defense Nuclear 
Agency as part of the counterproliferation activities of the Depart-
ment of Defense. 
(c) LONG-TERM RADIATION TOLERANT MICROELECTRONICS PRO-
GRAM.—(1) Of the amount made available under subsection (a), 
$6,000,000 shall be available for the establishment of a long-term 
110 STAT. 222 
PUBLIC LAW 104-106—FEB. 10, 1996 
Reports. 
radiation tolerant microelectronics program to be managed by the 
Defense Nuclear Agency for the purposes of— 
(A) providing for the development of affordable and effective 
hardening technologies and for incorporation of such tech-
nologies into systems; 
(B) sustaining the supporting industrial base; and 
(C) ensuring that a use of a nuclear weapon in regional 
threat scenarios does not interrupt or defeat the continued 
operability of systems of the Armed Forces exposed to the 
combined effects of radiation emitted by the weapon. 
(2) Not later than 120 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress 
a report on how the long-term radiation tolerant microelectronics 
program is to be conducted and funded in the fiscal years after 
fiscal year 1996 that are covered by the future-years defense pro-
gram submitted to Congress in 1995. 
(d) THERMIONICS PROGRAM.—Of the amount made available 
under subsection (a), $10,000,000 shall be available for the 
thermionics program, to be managed by the Defense Nuclear 
Agency. 
(e) 
ELECTROTHERMAL GUN TECHNOLOGY PROGRAM.—Of 
the 
amount made available under subsection (a), $4,000,000 shall be 
available for the electrothermal gun technology program of the 
Defense Nuclear Agency. 
(f) COUNTERTERROR EXPLOSIVES RESEARCH PROGRAM.—Of the 
amount made available under subsection (a), $4,000,000 shall be 
available for the counterterror explosives research program of the 
Defense Nuclear Agency. 
(g) TRANSFER OF UNOBLIGATED BALANCE.—The Secretary of 
Defense shall transfer to the Defense Nuclear Agency, to be avail-
able for the thermionics program, an amount not to exceed 
$12,000,000 from the unobligated balance of funds authorized and 
appropriated for research, development, test, and evaluation for 
fiscal year 1995 for the Air Force for the Advanced Weapons Pro-
gram. 
SEC. 
218. 
COUNTERPROLIFERATION 
SUPPORT 
PROGRAM. 
(a) FUNDING.—Of the funds authorized to be appropriated to 
the Department of Defense under section 201(4), $138,237,000 shall 
be available for the Counterproliferation Support Program, of which 
$30,000,000 shall be available for a tactical antisatellite tech-
nologies program. 
(b) ADDITIONAL ALTTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) In addition to the transfer authority provided in section 1001, 
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 to counterproliferation 
programs, projects, and activities identified as areas for progress 
by the Counterproliferation Program Review Committee established 
by section 1605 of the National Defense Authorization Act for 
Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1845). Amounts 
of authorizations so transferred shall be merged with and be avail-
able for the same purposes as the authorization to which trans-
ferred. 
(2) The total amount of authorizations transferred under the 
authority of this subsection may not exceed $50,000,000. 
PUBLIC LAW 104-10&-FEB. 10, 1996 
110 STAT. 223 
(3) The authority provided by this subsection to transfer 
authorizations— 
(A) may only be used to provide authority for items that 
have a higher priority than the items from which authority 
is transferred; and 
(B) may not be used to provide authority for an item 
that has been denied authorization by Congress. 
(4) A transfer made from one account to another under the 
authority of this subsection shall be deemed to increase the amount 
authorized for the account to which the amount is transferred 
by an amount equal to the amount transferred. 
(5) The Secretary of Defense shall promptly notify Congress 
Notification. 
of transfers made under the authority of this subsection. 
SEC. 219. NONLETHAL WEAPONS STUDY. 
(a) FINDINGS.—Congi-ess finds the following: 
(1) The role of the United States military in operations 
other than war has increased. 
(2) Weapons and instruments that are nonlethal in applica-
tion yet immobilizing could have widespread operational utility 
and application. 
(3) The use of nonlethal weapons in operations other than 
war poses a number of important doctrine, legal, policy, and 
operations questions which should be addressed in a com-
prehensive and coordinated manner. 
(4) The development of nonlethal technologies continues 
to spread across military and agency budgets. 
(5) The Department of Defense should provide improved 
budgetary focus and management direction to the nonlethal 
weapons program. 
(b) RESPONSIBILITY FOR DEVELOPMENT OF NONLETHAL WEAPONS 
TECHNOLOGY.—Not later than February 15, 1996, the Secretary 
of Defense shall assign centralized responsibility for development 
(and any other functional responsibility the Secretary considers 
appropriate) of nonlethal weapons technology to an existing office 
within the Office of the Secretary of Defense or to a military 
service as the executive agent. 
(c) REPORT.—Not later than February 15, 1996, the Secretary 
of Defense shall submit to Congress a report setting forth the 
following: 
(1) The name of the office or military service assigned 
responsibility for the nonlethal weapons program by the Sec-
retary of Defense pursuant to subsection (b) and a discussion 
of the rationale for such assignment. 
(2) The degree to which nonlethal weapons are required 
by more than one of the armed forces. 
(3) The time frame for the development and deployment 
of such weapons. 
(4) The appropriate role of the military departments and 
defense agencies in the development of such weapons. 
(5) The military doctrine, legal, policy, and operational 
issues that must be addressed by the Department of Defense 
before such weapons achieve operational capability. 
(d) AUTHORIZATION.—Of the amount authorized to be appro-
priated under section 201(4), $37,200,000 shall be available for 
nonlethal weapons programs and nonlethal technologies programs. 
110 STAT. 224 
PUBLIC LAW 104-106—FEB. 10, 1996 
Notice. 
(e) DEFINITION.—For purposes of this section, the 
term 
"nonlethal weapon" means a weapon or instrument the effect of 
which on human targets is less than fatal. 
SEC. 220. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CEN-
TERS AND UNIVERSITY-AFFILL\TED RESEARCH CENTERS. 
(a) CENTERS COVERED.—Funds appropriated or otherwise made 
available for the Department of Defense for fiscal year 1996 pursu-
ant to an authorization of appropriations in section 201 may be 
obligated to procure work from a federally funded research and 
development center (in this section referred to as an "FFRDC") 
or a university-affiliated research center (in this section referred 
to as a "UARC") only in the case of a center named in the report 
required by subsection (b) and, in the case of such a center, only 
in an amount not in excess of the amount of the proposed funding 
level set forth for that center in such report. 
(b) REPORT ON ALLOCATIONS FOR CENTERS.—(1) Not later than 
30 days after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House 
of Representatives a report containing— 
(A) the name of each FFRDC and UARC from which work 
is proposed to be procured for the Department of Defense 
for fiscal year 1996; and 
(B) for each such center, the proposed funding level and 
the estimated personnel level for fiscal year 1996. 
(2) The total of the proposed funding levels set forth in the 
report for all FFRDCs and UARCs may not exceed the amount 
set forth in subsection (d). 
(c) LIMITATION PENDING SUBMISSION OF REPORT.—Not more 
than 15 percent of the funds appropriated or otherwise made avail-
able for the Department of Defense for fiscal year 1996 pursuant 
to an authorization of appropriations in section 201 for FFRDCs 
and UARCs may be obligated to procure work from an FFRDC 
or UARC until the Secretary of Defense submits the report required 
by subsection (b). 
(d) FUNDING.—Of the amounts authorized to be appropriated 
by section 201, not more than a total of $1,668,850,000 may be 
obligated to procure services from the FFRDCs and UARCs named 
in the report required by subsection (b). 
(e) AUTHORITY TO WAIVE FUNDING LIMITATION.—The Secretary 
of Defense may waive the limitation regarding the maximum fund-
ing amount that applies under subsection (a) to an FFRDC or 
UARC. Whenever the Secretary proposes to make such a waiver, 
the Secretary shall submit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives notice of the proposed waiver and the 
reasons for the waiver. The waiver may then be made only after 
the end of the 60-day period that begins on the date on which 
the notice is submitted to those committees, unless the Secretary 
determines that it is essential to the national security that funds 
be obligated for work at that center in excess of that limitation 
before the end of such period and notifies those committees of 
that determination and the reasons for the determination. 
(f) FIVE-YEAR PLAN.—(1) The Secretary of Defense, in consulta-
tion with the Secretaries of the military departments, shall develop 
a five-year plan to reduce and consolidate the activities performed 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 225 
by FFRDCs and UARCs and establish a framework for the future 
workload of such centers. 
(2) The plan shall— 
(A) set forth the manner in which the Secretary of Defense 
could achieve by October 1, 2000, implementation by FFRDCs 
and UARCs of only those core activities, as defined by the 
Secretary, that require the unique capabilities and arrange-
ments afforded by such centers; and 
(B) include an assessment of the number of personnel 
needed in each FFRDC and UARC during each year over the 
five years covered by the plan. 
(3) Not later than February 1, 1996, the Secretary of Defense Reports, 
shall submit to the congressional defense committees a report on 
the plan required by this subsection. 
SEC. 221. JOINT SEISMIC PROGRAM AND GLOBAL SEISMIC NETWORK. 
Of the amount authorized to be appropriated under section 
201(3), $9,500,000 shall be available for fiscal year 1996 (in program 
element 6110 IF in the budget of the Department of Defense for 
fiscal year 1996) for continuation of the Joint Seismic Program 
and Global Seismic Network. 
SEC. 
222. 
HYDRA-70 
ROCKET 
PRODUCT 
IMPROVEMENT 
PROGRAM. 
(a) FUNDING AUTHORIZATION.—Of the amount authorized to 
be appropriated under section 201(1) for Other Missile Product 
Improvement Programs, $10,000,000 is authorized to be appro-
priated for a Hydra-70 rocket product improvement program and 
to be made available under such program for full qualification 
and operational platform 
certification 
of a Hydra-70 
rocket 
described in subsection (b) for use on the Apache attack helicopter. 
(b) 
HYDRA-70 
ROCKET 
COVERED.—The 
Hydra-70 
rocket 
referred to in subsection (a) is any Hydra-70 rocket that has as 
its propulsion component a 2.75-inch rocket motor that is a 
nondevelopmental item and uses a composite propellant. 
(c) COMPETITION REQUIRED.—The Secretary of the Army shall 
conduct the product improvement program referred to in subsection 
(a) with full and open competition. 
(d) 
SUBMISSION OF TECHNICAL DATA PACKAGE REQUIRED.— 
Upon the full qualification and operational platform certification 
of a Hydra-70 rocket as described in subsection (a), the contractor 
providing the rocket so qualified and certified shall submit the 
technical data package for the rocket to the Secretary of the Army. 
The Secretary shall use the technical data package in competitions 
for contracts for the procurement of Hydra-70 rockets described 
in subsection (b) for the Army. 
(e) DEFINITIONS.—For purposes of this section, the terms "full 
and open competition" and "nondevelopmental item" have the mean-
ings given such terms in section 4 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 403). 
SEC. 223. L I M I T A T I O N ON OBLIGATION OF FUNDS UNTIL RECEIPT OF 
ELECTRONIC COMBAT CONSOLIDATION MASTER PLAN. 
(a) LIMITATION.—Not more than 75 percent of the amounts 
appropriated 
or otherwise 
made 
available 
pursuant 
to 
the 
authorization of appropriations in section 201 for test and evalua-
tion program elements 65896A, 65864N, 65807F, and 65804D in 
the budget of the Department of Defense for fiscal year 1996 may 
110 STAT. 226 
PUBLIC LAW 104-106—FEB. 10, 1996 
be obligated until 14 days after the date on which the congressional 
defense committees receive the plan specified in subsection (b). 
(b) PLAN.—The plan referred to in subsection (a) is the master 
plan for electronic combat consolidation described under Defense-
Wide Programs under Research, Development, Test, and Evaluation 
in the Report of the Committee on Armed Services of the House 
of Representatives on H.R. 4301 (House Report 103-499), dated 
May 10, 1994. 
SEC. 224. REPORT ON REDUCTIONS IN RESEARCH, DEVELOPMENT, 
TEST, AND EVALUATION. 
(a) REPORT REQUIREMENT.—Not later than March 15, 1996, 
the Under Secretary of Defense (Comptroller) shall submit to the 
congressional defense committees a report that sets forth in detail 
the allocation of reductions for research, development, test, and 
evaluation described in subsection (b). 
(b) DESCRIPTION OF REDUCTIONS.—^The reductions for research, 
development, test, and evaluation covered by subsection (a) are 
the following Army, Navy, Air Force, and Defense-wide reductions, 
as required by the Department of Defense Appropriations Act, 1996: 
(1) General reductions. 
(2) Reductions to reflect savings from revised economic 
assumptions. 
(3) Reductions to reflect the funding ceiling for defense 
federally funded research and development centers. 
(4) Reductions for savings through improved management 
of contractor automatic data processing costs charged through 
indirect rates on Department of Defense acquisition contracts. 
SEC. 225. ADVANCED FIELD ARTILLERY SYSTEM (CRUSADER). 
(a) AUTHORITY TO USE FUNDS FOR ALTERNATIVE PROPELLANT 
TECHNOLOGIES.—During fiscal year 1996, the Secretary of the Army 
may use funds appropriated for the liquid propellant portion of 
the Advanced Field Artillery System (Crusader) program for fiscal 
year 1996 for alternative propellant technologies and integration 
of those technologies into the design of the Crusader if— 
(1) the Secretary determines that the technical risk associ-
ated with liquid propellant will increase costs and delay the 
initial operational capability of the Crusader; and 
Notification. 
(2) the Secretary notifies the congressional defense commit-
tees of the proposed use of the funds and the reasons for 
the proposed use of the funds. 
(b) LIMITATION.—^The Secretary of the Army may not spend 
funds for the liquid propellant portion of the Crusader program 
after August 15, 1996, unless— 
(1) the report required by subsection (c) has been submitted 
by that date; and 
(2) such report includes documentation of significsmt 
progress, as determined by the Secretary, toward meeting the 
objectives for the liquid propellant portion of the program, 
as set forth in the baseline description for the Crusader program 
and approved by the OfHce of the Secretary of Defense on 
January 4, 1995. 
(c) REPORT REQUIRED.—^Not later than August 1, 1996, the 
Secretary of the Army shall submit to the congressional defense 
committees a report containing documentation of the progress being 
made in meeting the objectives set forth in the baseline description 
for the Crusader program and approved by the Office of the Sec-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 227 
retary of Defense on January 4, 1995. The report shall specifically 
address the progress being made toward meeting the following 
objectives: 
(1) Establishment of breech and ignition design criteria 
for rate of fire for the cannon of the Crusader. 
(2) Selection of a satisfactory ignition concept for the next 
prototype of the cannon. 
(3) Selection, on the basis of modeling and simulation, 
of design concepts to prevent chamber piston reversals, and 
validation of the selected concepts by gun and mock chamber 
firings. 
(4) Achievement of an understanding of the chemistry and 
physics of propellant burn resulting from the firing of liquid 
propellant into any target zone, and achievement, on the basis 
of modeling and simulation, of an ignition process that is 
predictable. 
(5) Completion of an analysis of the management of heat 
dissipation for the full range of performance requirements for 
the cannon, completion of concept designs supported by that 
analysis, and proposal of such concept designs for engineering. 
(6) Development, for integration into the next prototype 
of the cannon, of engineering designs to control pressure oscilla-
tions in the chamber of the cannon during firing. 
(7) Completion of an assessment of the sensitivity of liquid 
propellant to contamination by various materials to which it 
may be exposed throughout the handling and operation of the 
cannon, and documentation of predictable reactions of contami-
nated or sensitized liquid propellant. 
(d) ADDITIONAL MATTERS TO BE COVERED BY REPORT.—The 
report required by subsection (c) also shall contain the following: 
(1) An assertion that all the known hazards associated 
with liquid propellant have been identified and are controllable 
to acceptable levels. 
(2) An assessment of the technology for each component 
of the Crusader (the cannon, vehicle, and crew module), includ-
ing, for each performance goal of the Crusader program (includ-
ing the goal for total system weight), information about the 
maturity of the technology to achieve that goal, the maturity 
of the design of the technology, and the manner in which 
the design has been proven (for example, through simulation, 
bench testing, or weapon firing). 
(3) An assessment of the cost of continued development 
of the Crusader after August 1, 1996, and the cost of each 
unit of the Crusader in the year the Crusader will be completed. 
SEC. 226. DEMILITARIZATION OF CONVENTIONAL MUNITIONS, ROCK-
ETS, AND EXPLOSIVES. 
Of the amount appropriated pursuant to the authorization in 
section 201 for explosives demilitarization technology, $15,000,000 
shall be available to establish an integrated program for the devel-
opment and demonstration of conventional munitions and explosives 
demilitarization technologies that comply with applicable environ-
mental laws for the demilitarization and disposal of unserviceable, 
obsolete, or nontreaty compliant munitions, rocket motors, and 
explosives. 
110 STAT. 228 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 227. DEFENSE AIRBORNE RECONNAISSANCE PROGRAM. 
(a) LIMITATION.—Not more than three percent of the total 
amount appropriated for research and development under the 
Defense 
Airborne 
Reconnaissance 
program 
pursuant 
to 
the 
authorizations of appropriations in section 201 may be obligated 
for systems engineering and technical assistance (SETA) contracts 
until— 
(1) funds are obligated (out of such appropriated funds) 
for— 
(A) the upgrade of U-2 aircraft senior year electro-
optical reconnaissance sensors to the newest configuration; 
and 
(B) the upgrade of the U-2 SIGINT system; and 
(2) the Under Secretary of Defense for Acquisition and 
Technology submits the report required under subsection (b). 
(b) REPORT ON U-2-RELATED UPGRADES.—(1) Not later than 
April 1, 1996, the Under Secretary of Defense for Acquisition and 
Technology shall transmit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives a report on obligations of funds for 
upgrades relating to airborne reconnaissance by U-2 aircraft. 
(2) The report shall set forth the specific purposes under the 
general purposes described in subparagraphs (A) and (B) of sub-
section (a)(1) for which funds have been obligated (as of the date 
of the report) and the amounts that have been obligated (as of 
such date) for those specific purposes. 
Ballistic MissUe 
Defense Act of 
1995 
10 u s e 2431 
note. 
Subtitle C—^Ballistic Missile Defense Act of 
1995 
SEC. 231. SHORT TITLE. 
This subtitle may be cited as the "Ballistic Missile Defense 
Act of 1995". 
SEC. 232. FINDINGS. 
Congress makes the following findings: 
(1) The emerging threat that is posed to the national secu-
rity interests of the United States by the proliferation of ballis-
tic missiles is significant and growing, both in terms of numbers 
of missiles and in terms of the technical capabilities of those 
missiles. 
(2) The deployment of ballistic missile defenses is a nec-
essary, but not sufficient, element of a broader strategy to 
discourage both the proliferation of weapons of mass destruction 
and the proliferation of the means of their delivery and to 
defend against the consequences of such proliferation. 
(3) The deployment of effective Theater Missile Defense 
systems can deter potential adversaries of the United States 
from escalating a conflict by threatening or attacking United 
States forces or the forces or territory of coalition partners 
or allies of the United States with ballistic missiles armed 
with weapons of mass destruction to offset the operational 
and technical advantages of the United States and its coalition 
partners and allies. 
(4) United States intelligence officials have provided intel-
ligence estimates to congressional committees that (A) the trend 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 229 
in missile proliferation is toward longer range and more sophis-
ticated ballistic missiles, (B) North Korea may deploy an inter-
continental ballistic missile capable of reaching Alaska or 
beyond within five years, and (C) although a new, indigenously 
developed ballistic missile threat to the continental United 
States is not foreseen within the next ten years, determined 
countries can acquire intercontinental ballistic missiles in the 
near future and with little warning by means other than indige-
nous development. 
(5) The development and deployment by the United States 
and its allies of effective defenses against ballistic missiles 
of all ranges will reduce the incentives for countries to acquire 
such missiles or to augment existing missile capabilities. 
(6) The concept of mutual assured destruction (based upon 
an offense-only form of deterrence), which is the major philo-
sophical rationale underlying the ABM Treaty, is now question-
able as a basis for stability in a multipolar world in which 
the United States and the states of the former Soviet Union 
are seeking to normalize relations and eliminate Cold War 
attitudes and arrangements. 
(7) The development and deployment of a National Missile 
Defense system against the threat of limited ballistic missile 
attacks— 
(A) would strengthen deterrence at the levels of forces 
agreed to by the United States and Russia under the 
Strategic Arms Reduction Talks Treaty (START-I); and 
(B) would further strengthen deterrence if reductions 
below the levels permitted under START-I should be 
agreed to and implemented in the future. 
(8) The distinction made during the Cold War, based upon 
the technology of the time, between strategic ballistic missiles 
and nonstrategic ballistic missiles, which resulted in the distinc-
tion made in the AI3M Treaty between strategic defense and 
nonstrategic defense, has become obsolete because of techno-
logical advancement (including the development by North Korea 
of long-range Taepo-Dong I and Taepo-Dong II missiles) and, 
therefore, that distinction in the ABM Treaty should be 
reviewed. 
SEC. 233. BALLISTIC MISSILE DEFENSE POLICY. 
It is the policy of the United States— 
(1) to deploy affordable and operationally effective theater 
missile defenses to protect forward-deployed and expeditionary 
elements of the Armed Forces of the United States and to 
complement the missile defense capabilities of forces of coalition 
partners and of allies of the United States; and 
(2) to seek a cooperative, negotiated transition to a regime 
that does not feature an offense-only form of deterrence as 
the basis for strategic stability. 
SEC. 234. THEATER MISSILE DEFENSE ARCHITECTURE. 
(a) ESTABLISHMENT OF CORE PROGRAM.—To implement the pol-
icy established in paragraph (1) of section 233, the Secretary of 
Defense shall restructure the core theater missile defense program 
to consist of the following systems, to be carried out so as to 
achieve the specified capabilities: 
(1) The Patriot PAC-3 system, with a first unit equipped 
(FUE) during fiscal year 1998. 
110 STAT. 230 
PUBLIC LAW 104-106—FEB. 10, 1996 
Notice. 
Reports. 
(2) The Navy Lower Tier (Area) system, with a user oper-
ational evaluation system (UOES) capability during fiscal year 
1997 and an initial operational capability (IOC) during fiscal 
year 1999. 
(3) The Theater High-Altitude Area Defense (THAAD) sys-
tem, with a user operational evaluation system (UOES) capabil-
ity not later than fiscal year 1998 and a first unit equipped 
(FUE) not later than fiscal year 2000. 
(4) The Navy Upper Tier (Theater Wide) system, with 
a user operational evaluation system (UOES) capability during 
fiscal year 1999 and an initial operational capability (IOC) 
during fiscal year 2001. 
(b) USE OF STREAMLINED ACQUISITION PROCEDURES.—The Sec-
retary of Defense shall prescribe and use streamlined acquisition 
policies and procedures to reduce the cost and increase the efficiency 
of developing and deploying the theater missile defense systems 
specified in subsection (a). 
(c) INTEROPERABILITY AND SUPPORT OF CORE SYSTEMS.—To 
maximize effectiveness and flexibility of the systems comprising 
the core theater missile defense program, the Secretary of Defense 
shall ensure that those systems are integrated and complementary 
and are fully capable of exploiting external sensor and battle 
management support from systems such as— 
(A) the Cooperative Engagement Capability (CEC) system 
of the Navy; 
(B) airborne sensors; and 
(C) space-based sensors (including, in particular, the Space 
and Missile Tracking System). 
(d) FOLLOW-ON SYSTEMS.—(1) The Secretary of Defense shall 
prepare an affordable development plan for theater missile defense 
systems to be developed as follow-on systems to the core systems 
specified in subsection (a). The Secretary shall make the selection 
of a system for inclusion in the plan based on the capability of 
the system to satisfy military requirements not met by the systems 
in the core program and on the capability of the system to use 
prior investments in technologies, infrastructure, 
and battle-
management capabilities that are incorporated in, or associated 
with, the systems in the core program. 
(2) The Secretary may not proceed with the development of 
a follow-on theater missile defense system beyond the Demonstra-
tionA'^alidation stage of development unless the Secretary des-
ignates that system as a part of the core program under this 
section and submits to the congressional defense committees notice 
of that designation. The Secretary shall include with any such 
notification a report describing— 
(A) the requirements for the system and the specific threats 
that such system is designed to counter; 
(B) how the system will relate to, support, and build upon 
existing core systems; 
(C) the planned acquisition strategy for the system; and 
(D) a preliminary estimate of total program cost for that 
system and the effect of development and acquisition of such 
system on Department of Defense budget projections. 
(e) PROGRAM ACCOUNTABILITY REPORT.—(1) As part of the 
annual report of the Ballistic Missile Defense Organization required 
by section 224 of Public Law 101-189 (10 U.S.C. 2431 note), the 
Secretary of Defense shall describe the technical milestones, the 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 231 
schedule, and the cost of each phase of development and acquisition 
(together with total estimated program costs) for each core and 
follow-on theater missile defense program. 
(2) As part of such report, the Secretary shall describe, with 
respect to each program covered in the report, any variance in 
the technical milestones, program schedule milestones, and costs 
for the program compared with the information relating to that 
program in the report submitted in the previous year and in the 
report submitted in the first year in which that program was 
covered. 
(f) REPORTS ON T M D SYSTEM 
LIMITATIONS 
UNDER ABM 
Certification. 
TREATY.—(1) Whenever, after January 1, 1993, the Secretary of 
Defense issues a certification with respect to the compliance of 
a particular Theater Missile Defense system with the ABM Treaty, 
the Secretary shall transmit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives a copy of such certification. Such transmit-
tal shall be made not later than 30 days after the date on which 
such certification is issued, except that in the case of a certification 
issued before the date of the enactment of this Act, such transmittal 
shall be made not later than 60 days after the date of the enactment 
of this Act. 
(2) If a certification under paragraph (1) is based on application 
of a policy concerning United States compliance with the ABM 
Treaty that differs from the policy described in section 235(b)(1), 
the Secretary shall include with the transmittal under that para-
graph a report providing a detailed assessment of— 
(A) how the policy applied differs from the policy described 
in section 235(b)(1); and 
(B) how the application of that policy (rather than the 
policy described in section 235(b)(1)) will affect the cost, sched-
ule, and performance of that system. 
SEC. 235. PROHIBITION ON USE OF FUNDS TO IMPLEMENT AN INTER-
NATIONAL AGREEMENT CONCERNING THEATER MISSILE 
DEFENSE SYSTEMS. 
(a) FINDINGS.—(1) Congress hereby reaffirms— 
(A) the finding in section 234(a)(7) of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
107 Stat. 1595; 10 U.S.C. 2431 note) that the ABM Treaty 
was not intended to, and does not, apply to or limit research, 
development, testing, or deployment of missile defense systems, 
system upgrades, or system components that are designed to 
counter modem theater ballistic missiles, regardless of the 
capabilities of such missiles, unless those systems, system 
upgrades, or system components are tested against or have 
demonstrated capabilities to counter modem strategic ballistic 
missiles; and 
(B) the statement in section 232 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 
108 Stat. 2700) that the United States shall not be bound 
by any international agreement entered into by the President 
that would substantively modify the ABM Treaty unless the 
agreement is entered into pursuant to the treaty making power 
of the President under the Constitution. 
(2) Congress also finds that the demarcation standard described 
in subsection (b)(1) for compliance of a missile defense system. 
110 STAT. 232 
PUBLIC LAW 104-106—FEB. 10, 1996 
system upgrade, or system component with the ABM Treaty is 
based upon current technology. 
(b) SENSE OF CONGRESS CONCERNING COMPLIANCE POLICY.— 
It is the sense of Congress that— 
(1) unless a missile defense system, system upgrade, or 
system component (including one that exploits data from space-
based or other external sensors) is flight tested in an ABM-
qualifying flight test (as defined in subsection (e)), that system, 
system upgrade, or system component has not, for purposes 
of the ABM Treaty, been tested in an ABM mode nor been 
given capabilities to counter strategic ballistic missiles and, 
therefore, is not subject to any application, limitation, or obliga-
tion under the ABM Treaty; and 
(2) any international agreement that would limit the 
research, development, testing, or deployment of missile defense 
systems, system upgrades, or system components that are 
designed to counter modern theater ballistic missiles in a man-
ner that would be more restrictive than the compliance criteria 
specified in paragraph (1) should be entered into only pursuant 
to the treaty making powers of the President under the Con-
stitution. 
(c) PROHIBITION ON FUNDING.—Funds appropriated or otherwise 
made available to the Department of Defense for fiscal year 1996 
may not be obligated or expended to implement an agreement, 
or any understanding with respect to interpretation of the ABM 
Treaty, between the United States and any of the independent 
states of the former Soviet Union entered into after January 1, 
1995, that— 
(1) would establish a demarcation between theater missile 
defense systems and anti-ballistic missile systems for purposes 
ofthe ABM Treaty; or 
(2) would restrict the performance, operation, or deploy-
ment of United States theater missile defense systems. 
(d) EXCEPTIONS.—Subsection (c) does not apply— 
(1) to the extent provided by law in an Act enacted after 
this Act; 
(2) to expenditures to implement that portion of any such 
agreement or understanding that implements the policy set 
forth in subsection (b)(1); or 
(3) to expenditures to implement any such agreement or 
understanding that is approved as a treaty or by law. 
(e) ABM-QuALiFYiNG FLIGHT TEST DEFINED.—For purposes of 
this section, an ABM-qualifying flight test is a flight test against 
a ballistic missile which, in that flight test, exceeds (1) a range 
of 3,500 kilometers, or (2) a velocity of 5 kilometers per second. 
SEC. 236. BALLISTIC MISSILE DEFENSE COOPERATION WITH ALLIES. 
It is in the interest of the United States to develop its own 
missile defense capabilities in a manner that will permit the United 
States to complement the missile defense capabilities developed 
and deployed by its allies and possible coalition partners. Therefore, 
the Congress urges the President— 
(1) to pursue high-level discussions with allies of the United 
States and selected other states on the means and methods 
by which the parties on a bilateral basis can cooperate in 
the development, deployment, and operation of ballistic missile 
defenses; 
PUBLIC lAW 104-106—FEB. 10, 1996 
110 STAT. 233 
(2) to take the initiative within the North Atlantic Treaty 
Organization to develop consensus in the Alliance for a timely 
deployment of effective ballistic missile defenses by the Alliance; 
and 
(3) in the interim, to seek agreement with allies of the 
United States and selected other states on steps the parties 
should take, consistent with their national interests, to reduce 
the risks posed by the threat of limited ballistic missile attacks, 
such steps to include— 
(A) the sharing of early warning information derived 
from sensors deployed by the United States and other 
states; 
(B) the exchange on a reciprocal basis of technical 
data and technology to support both joint development 
programs and the sale and purchase of missile defense 
systems and components; and 
(C) operational level planning to exploit current missile 
defense capabilities and to help define future requirements. 
SEC. 237. ABM TREATY DEFINED. 
For purposes of this subtitle, the term "ABM Treaty" means 
the Treaty Between the United States of America and the Union 
of Soviet Socialist Republics on the Limitation of Anti-Ballistic 
Missile Systems, and signed at Moscow on May 26, 1972, and 
includes the Protocols to that Treaty, signed at Moscow on July 
3, 1974. 
SEC. 238. REPEAL OF MISSILE DEFENSE ACT OF 1991. 
The Missile Defense Act of 1991 (10 U.S.C. 2431 note) is 
repealed. 
Subtitle D—Other Ballistic Missile Defense 
Provisions 
SEC. 251. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS. 
10 USC 221 note. 
(a) ELEMENTS SPECIFIED.—In the budget justification materials 
submitted to Congress in support of the Department of Defense 
budget for any fiscal year after fiscal year 1996 (as submitted 
with the budget of the President under section 1105(a) of title 
31, United States Code), the amount requested for activities of 
the Ballistic Missile Defense Organization shall be set forth in 
accordance with the following program elements: 
(1) The Patriot system. 
(2) The Navy Lower Tier (Area) system. 
(3) The Theater High-Altitude Area Defense (THAAD) sys-
tem. 
(4) The Navy Upper Tier (Theater Wide) system. 
(5) The Corps Surface-to-Air Missile (SAM) system. 
(6) Other Theater Missile Defense Activities. 
(7) National Missile Defense. 
(8) Follow-On and Support Technologies. 
(b) 
TREATMENT OF CORE THEATER MISSILE DEFENSE 
PRO-
GRAMS.—^Amounts requested for core theater missile defense pro-
grams specified in section 234 shall be specified in individual, 
dedicated program elements, and amounts appropriated for such 
29-194 O - 96 - 9 : QL 3 Part 1 
110 STAT. 234 
PUBLIC LAW 104-106—FEB. 10, 1996 
programs shall be available only for activities covered by those 
program elements. 
(c) BM/C^I PROGRAMS.—^Amounts requested for programs, 
projects, and activities involving battle management, command, 
control, communications, and intelligence (BM/C^I) shall be included 
in the "Other Theater Missile Defense Activities" program element 
or the "National Missile Defense" program element, as determined 
on the basis of the primary objectives involved. 
(d) MANAGEMENT AND SUPPORT.—Each program element shall 
include requests for the amounts necessary for the management 
and support of the programs, projects, and activities contained 
in that program element. 
SEC. 252. TESTING OF THEATER MISSILE DEFENSE INTERCEPTORS. 
Subsection (a) of section 237 of the National Defense Authoriza-
tion Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1600) 
is amended to read as follows: 
Certification. 
"(a) TESTING OF THEATER MISSILE DEFENSE INTERCEPTORS.— 
(1) The Secretary of Defense may not approve a theater missile 
defense interceptor program proceeding beyond the low-rate initial 
production acquisition stage until the Secretary certifies to the 
congressional defense committees that such program has success-
fully completed initial operational test and evaluation. 
"(2) In order to be certified under paragraph (1) as having 
been successfully completed, the initial operational test and evalua-
tion conducted with respect to an interceptors program must have 
included flight tests— 
"(A) that were conducted with multiple interceptors and 
multiple targets in the presence of realistic countermeasures; 
and 
"(B) the results of which demonstrate the achievement 
by the interceptors of the baseline performance thresholds. 
"(3) For purposes of this subsection, the baseline performance 
thresholds with respect to a program are the weapons systems 
performance thresholds specified in the baseline description for 
the system established (pursuant to section 2435(a)(1) of title 10, 
United States Code) before the program entered the engineering 
and manufacturing development stage. 
"(4) The number of flight tests described in paragraph (2) 
that are required in order to make the certification under paragraph 
(1) shall be a number determined by the Secretary of Defense 
to be sufficient for the purposes of this section. 
"(5) The Secretary may augment live-fire testing to demonstrate 
weapons system performance goals for purposes of the certification 
under paragraph (1) through the use of modeling and simulation 
that is validated by ground and flight testing.". 
SEC. 253. REPEAL OF MISSILE DEFENSE PROVISIONS. 
The following provisions of law are repealed: 
(1) Section 222 of the Department of Defense Authorization 
Act, 1986 (PubUc Law 99-145; 99 Stat. 613; 10 U.S.C. 2431 
note). 
(2) Section 225 of the Department of Defense Authorization 
Act, 1986 (Public Law 99-145; 99 Stat. 614). 
(3) Section 226 of the National Defense Authorization Act 
for Fiscal Years 1988 and 1989 (Public Law 100-180; 101 
Stat. 1057; 10 U.S.C. 2431 note). 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 235 
(4) Section 8123 of the Department of Defense Appropria-
tions Act, 1989 (Public Law 100-463; 102 Stat. 2270-40). 
(5) Section 8133 of the Department of Defense Appropria-
tions Act, 1992 (Public Law 102-172; 105 Stat. 1211). 
(6) Section 234 of the National Defense Authorization Act 
for Fiscal Year 1994 (PubHc Law 103-160; 107 Stat. 1595; 
10 U.S.C. 2431 note). 
(7) Section 242 of the National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1603; 
10 U.S.C. 2431 note). 
(8) Section 235 of the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2701; 
10 U.S.C. 221 note). 
(9) Section 2609 of title 10, United States Code. 
Subtitle E—Miscellaneous Reviews, 
Studies, and Reports 
SEC. 261. PRECISION-GUTOED MUNITIONS. 
(a) ANALYSIS REQUIRED.—^The Secretary of Defense shall per-
form an analysis of the full range of precision-guided munitions 
in production and in research, development, test, and evaluation 
in order to determine the following: 
(1) The numbers and types of precision-guided munitions 
that are needed to provide complementary capabilities against 
each target class. 
(2) The feasibility of carrying out joint development and 
procurement of additional types of munitions by more than 
one of the Armed Forces. 
(3) The feasibility of integrating a particular precision-
guided munition on multiple service platforms. 
(4) The economy and effectiveness of continuing the acquisi-
tion of— 
(A) interim precision-guided munitions; or 
(B) precision-guided munitions that, as a result of being 
procured in decreasing numbers to meet decreasing quan-
tity requirements, have increased in cost per unit by more 
than 50 percent over the cost per unit for such munitions 
as of December 1, 1991. 
(b) REPORT.—(1) Not later than April 15, 1996, the Secretary 
shall submit to Congress a report on the findings and other results 
of the analysis. 
(2) The report shall include a detailed discussion of the process 
by which the Department of Defense— 
(A) approves the development of new precision-guided 
munitions; 
(B) avoids duplication and redundancy in the precision-
guided munitions programs of the Army, Navy, Air Force, and 
Marine Corps; 
(C) ensures rationality in the relationship between the 
funding plans for precision-guided munitions modernization for 
fiscal years following fiscal year 1996 and the costs of such 
modernization for those fiscal years; and 
(D) identifies by name and function each person responsible 
for approving each new precision-guided munition for initial 
low-rate production. 
110 STAT. 236 
PUBLIC LAW 104-106—FEB. 10, 1996 
(c) FUNDING LIMITATION.—Funds authorized to be appropriated 
by this Act may not be expended for research, development, test, 
and evaluation or procurement of interim precision-guided muni-
tions after April 15, 1996, unless the Secretary of Defense has 
submitted the report under subsection (b). 
(d) INTERIM PRECISION-GUIDED MUNITION DEFINED.—For pur-
poses of subsection (c), a precision-guided munition is an interim 
precision-guided munition if the munition is being procured in 
fiscal year 1996, but funding is not proposed for additional procure-
ment of the munition in the fiscal years after fiscal year 1996 
that are covered by the future years defense program submitted 
to Congress in 1995 under section 221(a) of title 10, United States 
Code. 
10 u s e 113 note. 
SEC. 262. REVIEW OF C^I BY NATIONAL RESEARCH COUNCIL. 
(a) REVIEW BY NATIONAL RESEARCH COUNCIL.—Not later than 
90 days after the date of the enactment of this Act, the Secretary 
of Defense shall request the National Research Council of the 
National Academy of Sciences to conduct a comprehensive review 
of current and planned service and defense-wide programs for com-
mand, control, communications, computers, and intelligence (C^I) 
with a special focus on cross-service and inter-service issues. 
(b) MATTERS TO BE ASSESSED IN REVIEW.—^The review shall 
address the following: 
(1) The match between the capabilities provided by current 
service and defense-wide C'^I programs and the actual needs 
of users of these programs. 
(2) The interoperability of service and defense-wide C
^
^
I 
systems that are planned to be operational in the future. 
(3) The need for an overall defense-wide architecture for 
C4I. 
(4) Proposed strategies for ensuring that future C^I acquisi-
tions are compatible and interoperable with an overall architec-
ture. 
(5) Technological and administrative aspects of the C^I 
modernization effort to determine the soundness of the underly-
ing plan and the extent to which it is consistent with concepts 
for joint military operations in the future. 
(c) TWO-YEAR PERIOD FOR CONDUCTING REVIEW.—The review 
shall be conducted over the two-year period beginning on the date 
on which the National Research Council and the Secretary of 
Defense enter into a contract or other agreement for the conduct 
of the review. 
(d) REPORTS.—(1) In the contract or other agreement for the 
conduct of the review, the Secretary of Defense shall provide that 
the National Research Council shall submit to the Department 
of Defense and Congress interim reports and progress updates 
on a regular basis as the review proceeds. A final report on the 
review shall set forth the findings, conclusions, and recommenda-
tions of the Council for defense-wide and service C'^I programs 
and shall be submitted to the Committee on Armed Services of 
the Senate, the Committee on National Security of the House of 
Representatives, and the Secretary of Defense. 
(2) To the maximum degree possible, the final report shall 
be submitted in unclassified form with classified annexes as nec-
essary. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 237 
(e) INTERAGENCY COOPERATION WITH STUDY.—All military 
departments, defense agencies, and other components of the Depart-
ment of Defense shall cooperate fully with the National Research 
Council in its activities in carrying out the review under this 
section. 
(f) 
EXPEDITED PROCESSING OF SECURITY CLEARANCES FOR 
STUDY.—For the purpose of facilitating the commencement of the 
study under this section, the Secretary of Defense shall expedite 
to the fullest degree possible the processing of security clearances 
that are necessary for the National Research Council to conduct 
the study. 
(g) FUNDING.—Of the amount authorized to be appropriated 
in section 201 for defense-wide activities, $900,000 shall be available 
for the study under this section. 
SEC. 263. ANALYSIS 
OF 
CONSOLIDATION 
OF 
BASIC 
RESEARCH 
ACCOUNTS OF MILITARY DEPARTMENTS. 
(a) ANALYSIS REQUIRED.—The Secretary of Defense shall con-
duct an analysis of the cost and effectiveness of consolidating the 
basic research accounts of the military departments. The analysis 
shall determine potential infrastructure savings and other benefits 
of co-locating and consolidating the management of basic research. 
(b) DEADLINE.—On or before March 1, 1996, the Secretary 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representa-
tives a report on the analysis conducted under subsection (a). 
SEC. 264. 
CHANGE 
IN 
REPORTING 
PERIOD 
FROM 
CALENDAR 
YEAR 
TO 
FISCAL 
YEAR FOR ANNUAL REPORT ON CERTAIN CON-
TRACTS 
TO 
COLLEGES 
AND 
UNIVERSITIES. 
Section 2361(c)(2) of title 10, United States Code, is amended— 
(1) by striking out "calendar year" and inserting in lieu 
thereof "fiscal year"; and 
(2) by striking out "the year after the year" and inserting 
in lieu thereof "the fiscal year after the fiscal year". 
SEC. 265. AERONAUTICAI. 
RESEARCH 
AND 
TEST 
CAPABILITIES 
ASSESSMENT. 
(a) FINDINGS.—Congress finds the following: 
(1) It is in the Nation's long-term national security interests 
for the United States to maintain preeminence in the area 
of aeronautical research and test capabilities. 
(2) Continued 
advances in aeronautical 
science 
and 
engineering are critical to sustaining the strategic and tactical 
air superiority of the United States and coalition forces, as 
well as United States economic security and international aero-
space leadership. 
(3) It is in the national security and economic interests 
of the United States and the budgetary interests of the Depart-
ment of Defense for the department to encourage the establish-
ment of active partnerships between the department and other 
Government agencies, academic institutions, and private indus-
try to develop, maintain, and enhance aeronautical research 
and test capabilities. 
(b) REVIEW.—The Secretary of Defense shall conduct a com-
prehensive review of the aeronautical research and test facilities 
and capabilities of the United States in order to assess the current 
condition of such facilities and capabilities. 
110 STAT. 238 
PUBLIC LAW 104-106—FEB. 10, 1996 
(c) REPORT.—(1) Not later than March 1, 1996, the Secretary 
of Defense shall submit to the congressional defense committees 
a report setting forth in detail the findings of the review required 
by subsection (b). 
(2) The report shall include the following: 
(A) The options for providing affordable, operable, reliable, 
and responsive long-term aeronautical research and test 
capabilities for military and civilian purposes and for the 
organization and conduct of such capabilities within the Depart-
ment or through shared operations with other Government 
agencies, academic institutions, and private industry. 
(B) The projected costs of such options, including costs 
of acquisition and technical and financial arrangements (includ-
ing the use of Government facilities for reimbursable private 
use). 
(C) Recommendations on the most efficient and economic 
means of developing, maintaining, and continually modernizing 
aeronautical research and test capabilities to meet current, 
planned, and prospective military and civilian needs. 
Subtitle F—Other Matters 
SEC. 271. ADVANCED LITHOGRAPHY PROGRAM. 
Section 216 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2693) is amended— 
(1) in subsection (a), by striking out "to help achieve" 
and all that follows through the end of the subsection and 
inserting in lieu thereof "to ensure that lithographic processes 
being developed by United States-owned companies or United 
States-incorporated companies operating in the United States 
will lead to superior performance electronics systems for the 
Department of Defense."; 
(2) in subsection (b), by adding at the end the following 
new paragraph: 
"(3) The Director of the Defense Advanced Research Projects 
Agency may set priorities and funding levels for various technologies 
being developed for the ALP and shall consider funding rec-
ommendations made by the Semiconductor Industry Association 
as being advisory in nature."; 
(3) in subsection (c)— 
(A) by inserting "Defense" before "Advanced"; and 
(B) by striking out "ARPA" both places it appears 
and inserting in lieu thereof "DARPA"; and 
(4) by adding at the end the following: 
"(d) DEFINITIONS.—In this section: 
"(1) The term 'United States-owned company' means a com-
pany the majority ownership or control of which is held by 
citizens of the United States. 
"(2) The term 'United States-incorporated company' means 
a company that the Secretary of Defense finds is incorporated 
in the United States and has a parent company that is incor-
porated in a country— 
"(A) that affords to United States-owned companies 
opportunities, comparable to those afforded to any other 
company, to participate in any joint venture similar to 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 239 
those authorized under section 28 of the National Institute 
of Standards and Technology Act (15 U.S.C. 278n); 
"(B) that affords to United States-owned companies 
local investment opportunities comparable to those afforded 
to any other company; and 
"(C) that affords adequate and effective protection for 
the intellectual property rights of United States-owned 
companies.". 
SEC. 272. ENHANCED FffiER OPTIC GUIDED MISSILE (EFOG-M) SYS-
TEM. 
(a) LIMITATIONS.—(1) The Secretary of the Army may not obli-
gate more than $280,000,000 (based on fiscal year 1995 constant 
dollars) to develop and deliver for test and evaluation by the Army 
the following items: 
(A) 44 enhanced fiber optic guided test missiles. 
(B) 256 fully operational enhanced fiber optic guided mis-
siles. 
(C) 12 fully operational fire units. 
(2) The Secretary of the Army may not spend funds for the 
enhanced fiber optic guided missile (EFOG-M) system after Septem-
ber 30, 1998, if the items described in paragraph (1) have not 
been delivered to the Army by that date and at a cost not greater 
than the amount set forth in paragraph (1). 
(3) The Secretary of the Army may not enter into an advanced 
development phase for the EFOG-M system unless— 
(A) an advanced concept technology demonstration of the 
system has been successfully completed; and 
(B) the Secretary certifies to the congressional defense 
committees that there is a requirement for the EFOG—M system 
that is supported by a cost and operational effectiveness analy-
sis. 
(b) GOVERNMENT-FURNISHED EQUIPMENT.—The Secretary of the 
Army shall ensure that all Government-furnished equipment that 
the Army agrees to provide under the contract for the EFOG— 
M system is provided to the prime contractor in accordance with 
the terms of the contract. 
SEC. 273. S T A T E S 
ELIGIBLE FOR ASSISTANCE UNDER DEFENSE 
EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE 
RESEARCH. 
Subparagraph (A) of section 257(d)(2) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2705; 10 U.S.C. 2358 note) is amended to read as follows: 
"(A) the average annual amount of all Department of 
Defense obligations for science and engineering research and 
development that were in effect with institutions of higher 
education in the State for the three fiscal years preceding 
the fiscal year for which the designation is effective or for 
the last three fiscal years for which statistics are available 
is less than the amount determined by multiplying 60 percent 
times the amount equal to Vso of the total average annual 
amount of all Department of Defense obligations for science 
and engineering research and development that were in effect 
with institutions of higher education in the United States for 
such three preceding or last fiscal years, as the case may 
be (to be determined in consultation with the Secretary of 
Defense);". 
110 STAT. 240 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 274. CRUISE MISSILE DEFENSE INITIATIVE. 
(a) IN GENERAL.—The Secretary of Defense shall undertake 
an initiative to coordinate and strengthen the cruise missile defense 
programs of the Department of Defense to ensure that the United 
States develops and deploys affordable and operationally effective 
defenses against existing and future cruise missile threats to United 
States military forces and operations. 
(b) 
COORDINATION 
WITH 
BALLISTIC 
MISSILE 
DEFENSE 
EFFORTS.—In carrying out subsection (a), the Secretary shall ensure 
that, to the extent practicable, the cruise missile defense programs 
of the Department of Defense and the ballistic missile defense 
programs of the Department of Defense are coordinated with each 
other and that those programs are mutually supporting. 
(c) DEFENSES AGAINST EXISTING AND NEAR-TERM CRUISE MIS-
SILE THREATS.—^As part of the initiative under subsection (a), the 
Secretary shall ensure that appropriate existing and planned air 
defense systems are upgraded to provide an affordable and oper-
ationally effective defense against existing and near-term cruise 
missile threats to United States military forces and operations. 
(d) DEFENSES AGAINST ADVANCED CRUISE MISSILES.—^As part 
of the initiative under subsection (a), the Secretary shall undertake 
a well-coordinated development program to support the future 
deployment of cruise missile defense systems that are affordable 
and operationally effective against advanced cruise missiles, includ-
ing cruise missiles with low observable features. 
(e) IMPLEMENTATION PLAN.—Not later than the date on which 
the President submits the budget for fiscal year 1997 under section 
1105 of title 31, United States Code, the Secretary of Defense 
shall submit to the congressional defense committees a detailed 
plan, in unclassified and classified forms, as necessary, for carrying 
out this section. The plan shall include an assessment of the follow-
ing: 
(1) The systems of the Department of Defense that cur-
rently have or could have cruise missile defense capabilities 
and existing programs of the Department of Defense to improve 
these capabilities. 
(2) The technologies that could be deployed in the near-
to mid-term to provide significant advances over existing cruise 
missile defense capabilities and the investments that would 
be required to ready those technologies for deployment. 
(3) The cost and operational tradeoffs, if any, between 
(A) upgrading existing air and missile defense systems, and 
(B) accelerating follow-on systems with significantly improved 
capabilities against advanced cruise missiles. 
(4) The organizational and management changes that 
would strengthen and further coordinate the cruise missile 
defense programs of the Department of Defense, including the 
disadvantages, if any, of implementing such changes. 
(f) DEFINITION.—For the purposes of this section, the term 
"cruise missile defense programs" means the programs, projects, 
and activities of the military departments, the Advanced Research 
Projects Agency, and the Ballistic Missile Defense Organization 
relating to development and deployment of defenses against cruise 
missiles. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 241 
SEC. 275. MODIFICATION TO UNIVERSITY RESEARCH INITIATIVE SUP-
PORT PROGRAM. 
Section 802 of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 107 Stat. 1701) is amended— 
10USC2358 
(1) in subsections (a) and (b), by striking out "shall" both note. 
places it appears and inserting in lieu thereof "may"; and 
(2) in subsection (e), by striking out the sentence beginning 
with "Such selection process". 
SEC. 276. MANUFACTURING TECHNOLOGY PROGRAM. 
(a) IN GENERAL.—Section 2525 of title 10, United States Code, 
is amended as follows: 
(1) The heading is amended by striking out the second 
and third words. 
(2) Subsection (a) is amended— 
(A) by striking out "Science and"; and 
(B) by inserting after the first sentence the following: 
"The Secretary shall use the joint planning process of the 
directors of the Department of Defense laboratories in 
establishing the program.". 
(3) Subsection (c) is amended— 
(A) by inserting "(1)" after "(c) EXECUTION.—"; and 
(B) by adding at the end the following: 
"(2) The Secretary shall seek, to the extent practicable, the 
participation of manufacturers of manufacturing equipment in the 
projects under the program.". 
(4) Subsection (d) is amended— 
(A) in paragraph (2)— 
(i) by striking out "or" at the end of subparagraph 
(A); 
(ii) by striking out the period at the end of subpara-
graph (B) and inserting in lieu thereof "; or"; and 
(iii) by adding at the end the following new 
subparagraph: 
"(C) will be carried out by an institution of higher edu-
cation."; and 
(B) by adding at the end the following new paragraphs: 
"(3) At least 25 percent of the funds available for the program 
each fiscal year shall be used for awarding grants and entering 
into contracts, cooperative agreements, and other transactions on 
a cost-share basis under which the ratio of recipient cost to Govern-
ment cost is two to one. 
"(4) If the requirement of paragraph (3) cannot be met by 
July 15 of a fiscal year, the Under Secretary of Defense for Acquisi-
tion and Technology may waive the requirement and obligate the 
balance of the funds available for the program for that fiscal year 
on a cost-share basis under which the ratio of recipient cost to 
Government cost is less than two to one. Before implementing 
any such waiver, the Under Secretary shall submit to the Commit-
tee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives the reasons for the 
waiver.". 
110 STAT. 242 
PUBLIC LAW 104-106—FEB. 10, 1996 
(b) CLERICAL AMENDMENT.—The item relating to section 2525 
in the table of sections at the beginning of subchapter IV of chapter 
148 of title 10, United States Code, is amended to read as follows: 
"2525. Manufacttiring Technology Program.". 
SEC. 277. FIVE-YEAR PLAN FOR CONSOLIDATION OF DEFENSE LAB-
ORATORIES AND TEST AND EVALUATION CENTERS. 
(a) FIVE-YEAR PLAN.—The Secretary of Defense, acting through 
the Vice Chief of Staff of the Army, the Vice Chief of Naval Oper-
ations, and the Vice Chief of Staff of the Air Force (in their roles 
as test and evaluation executive agent board of directors) shall 
develop a five-year plan to consolidate and restructure the labora-
tories and test and evaluation centers of the Department of Defense. 
(b) OBJECTIVE.—The plan shall set forth the specific actions 
needed to consolidate the laboratories and test and evaluation cen-
ters into as few laboratories and centers as is practical and possible, 
in the judgment of the Secretary, by October 1, 2005. 
(c) PREVIOUSLY DEVELOPED DATA REQUIRED TO BE USED.— 
In developing the plan, the Secretary shall use the following: 
(1) Data and results obtained by the Test and Evaluation 
Joint Cross-Service Group and the Laboratory Joint Cross-
Service Group in developing recommendations for the 1995 
report of the Defense Base Closure and Realignment Commis-
sion. 
(2) The report dated March 1994 on the consolidation and 
streamlining of the test and evaluation infrastructure, commis-
sioned by the test and evaluation board of directors, along 
with all supporting data and reports. 
(d) MATTERS TO BE CONSIDERED.—In developing the plan, the 
Secretary shall consider, at a minimum, the following: 
(1) Consolidation of common support functions, including 
the following: 
(A) Aircraft (fixed wing and rotary) support. 
(B) Weapons support. 
(C) Space systems support. 
(D) Support of command, control, communications, 
computers, and intelligence. 
(2) The extent to which any military construction, acquisi-
tion of equipment, or modernization of equipment is planned 
at the laboratories and centers. 
(3) The encroachment on the laboratories and centers by 
residential and industrial expansion. 
(4) The total cost to the Federal Government of continuing 
to operate the laboratories and centers. 
(5) The cost savings and program effectiveness of locating 
laboratories and centers at the same sites. 
(6) Any loss of expertise resulting from the consolidations. 
(7) Whether any legislation is neccessary to provide the 
Secretary with any additional authority necessary to accomplish 
the downsizing and consolidation of the laboratories and cen-
ters. 
(e) REPORT.—Not later than May 1, 1996, the Secretary of 
Defense shall submit to the congressional defense committees a 
report on the plan. The report shall include an identification of 
any additional legislation that the Secretary considers necessary 
in order for the Secretary to accomplish the downsizing and consoli-
dation of the laboratories and centers. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 243 
(f) LIMITATION.—Of the amounts appropriated or otherwise 
made available pursuant to an authorization of appropriations in 
section 201 for the central test and evaluation investment develop-
ment program, not more than 75 percent may be obligated before 
the report required by subsection (e) is submitted to Congress. 
SEC. 278. LIMITATION ON T-38 AVIONICS UPGRADE PROGRAM. 
(a) REQUIREMENT.—The Secretary of Defense shall ensure that, 
in evaluating proposals submitted in response to a solicitation 
issued for a contract for the T-38 Avionics Upgrade Program, 
the proposal of an entity may not be considered unless— 
(1) in the case of an entity that conducts substantially 
all of its business in a foreign country, the foreign country 
provides equal access to similar contract solicitations in that 
country to United States entities; and 
(2) in the case of an entity that conducts business in 
the United States but that is owned or controlled by a foreign 
government or by an entity incorporated in a foreign country, 
the foreign government or foreign country of incorporation pro-
vides equal access to similar contract solicitations in that coun-
try to United States entities. 
(b) DEFINITION.—In this section, the term "United States entity" 
means an entity that is owned or controlled by persons a majority 
of whom are United States citizens. 
SEC. 279. GLOBAL POSITIONING SYSTEM. 
(a) CONDITIONAL PROHIBITION ON USE OF SELECTIVE AVAILABIL-
ITY 
FEATURE.—Except 
as 
provided 
in 
subsection 
(b), 
after 
May 1, 1996, the Secretary of Defense may not (through use of 
the feature known as "selective availability") deny access of non-
Department of Defense users to the full capabilities of the Global 
Positioning System. 
(b) PLAN.—Subsection (a) shall cease to apply upon submission 
by the Secretary of Defense to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives of a plan for enhancement of the Global 
Positioning System that provides for— 
(1) development and acquisition of effective capabilities 
to deny hostile military forces the ability to use the Global 
Positioning System without hindering the ability of United 
States military forces and civil users to have access to and 
use of the system, together with a specific date by which those 
capabilities could be operational; and 
(2) development and acquisition of receivers for the Global 
Positioning System and other techniques for weapons and 
weapon systems that provide substantially improved resistance 
to jamming and other forms of electronic interference or disrup-
tion, together with a specific date by which those receivers 
and other techniques could be operational with United States 
military forces. 
SEC. 280. REVISION OF AUTHORITY FOR PROVIDING ARMY SUPPORT 
FOR THE NATIONAL SCIENCE CENTER FOR COMMUNICA-
TIONS AND ELECTRONICS. 
(a) PURPOSE.—Subsection (b)(2) of section 1459 of the Depart-
ment of Defense Authorization Act, 1986 (Public Law 99-145; 99 
Stat. 763) is amended by striking out "to make available" and 
all that follows and inserting in lieu thereof "to provide for the 
110 STAT. 244 
PUBLIC LAW 104-106—FEB. 10, 1996 
management, operation, and maintenance of those areas in the 
national science center that are designated for use by the Army 
and to provide incidental support for the operation of those areas 
in the center that are designated for general use.". 
(b) AUTHORITY FOR SUPPORT.—-Subsection (c) of such section 
is amended to read as follows: 
"(c) NATIONAL SCIENCE CENTER.—(1) The Secretary may man-
age, operate, and maintain facilities at the center under terms 
and conditions prescribed by the Secretary for the purpose of 
conducting educational outreach programs in accordance with chap-
ter 111 of title 10, United States Code. 
"(2) The Foundation, or NSC Discovery Center, Incorporated, 
a nonprofit corporation of the State of Georgia, shall submit to 
the Secretary for review and approval all matters pertaining to 
the acquisition, design, renovation, equipping, and furnishing of 
the center, including all plans, specifications, contracts, sites, and 
materials for the center.". 
(c) AUTHORITY FOR ACCEPTANCE OF GIFTS AND FUNDRAISING.— 
Subsection (d) of such section is amended to read as follows: 
"(d) GIFTS AND FUNDRAISING.—(1) Subject to paragraph (3), 
the Secretary may accept a conditional or unconditional donation 
of money or property that is made for the benefit of, or in connection 
with, the center. 
"(2) Notwithstanding any other provision of law, the Secretary 
may endorse, promote, and assist the efforts of the Foundation 
and NSC Discovery Center, Incorporated, to obtain— 
"(A) funds for the management, operation, and maintenance 
of the center; and 
"(B) donations of exhibits, equipment, and other property 
for use in the center. 
"(3) The Secretary may not accept a donation under this sub-
section that is made subject to— 
"(A) any condition that is inconsistent with an applicable 
law or regulation; or 
"(B) except to the extent provided in appropriations Acts, 
any condition that would necessitate an expenditure of appro-
priated funds. 
Regulations. 
"(4) The Secretary shall prescribe in regulations the criteria 
to be used in determining whether to accept a donation. The Sec-
retary shall include criteria to ensure that acceptance of a donation 
does not establish an unfavorable appearance regarding the fairness 
and objectivity with which the Secretary or any other officer or 
employee of the Department of Defense performs official responsibil-
ities and does not compromise or appear to compromise the integrity 
of a Government program or any official involved in that program.". 
(d) AUTHORIZED USES.—Such section is amended— 
(1) by striking out subsection (f); 
(2) by redesignating subsection (g) as subsection (f); and 
(3) in paragraph (1) of subsection (f), as redesignated by 
paragraph (2), by inserting "areas designated for use by the 
Army in" after "The Secretary may make". 
s 
(e) ALTERNATIVE OF ADDITIONAL DEVELOPMENT AND MANAGE-
MENT.—Such section, as amended by subsection (d), is further 
amended by adding at the end the following: 
"(g) ALTERNATIVE OR ADDITIONAL DEVELOPMENT AND MANAGE-
MENT OF THE CENTER.—(1) The Secretary may enter into an agree-
ment with NSC Discovery Center, Incorporated, to develop, manage. 
PUBLIC LAW 104-10&—FEB. 10, 1996 
110 STAT. 245 
and maintain a national science center under this section. In enter-
ing into an agreement with NSC Discovery Center, Incorporated, 
the Secretary may agree to any term or condition to which the 
Secretary is authorized under this section to agree for purposes 
of entering into an agreement with the Foundation. 
"(2) The Secretary may exercise the authority under paragraph 
(1) in addition to, or instead of, exercising the authority provided 
under this section to enter into an agreement with the Foundation.". 
TITLE III—OPERATION AND 
MAINTENANCE 
Subtitle A—^Authorization of 
Appropriations 
SEC. 301. OPERATION AND MAINTENANCE FUNDING. 
Funds are hereby authorized to be appropriated for fiscal year 
1996 for the use of the Armed Forces and other activities and 
agencies of the Department of Defense for expenses, not otherwise 
provided for, for operation and maintenance, in amounts as follows: 
(1) For the Army, $18,746,695,000. 
(2) For the Navy, $21,493,155,000. 
(3) For the Marine Corps, $2,521,822,000. 
(4) For the Air Force, $18,719,277,000. 
(5) For Defense-wide activities, $9,910,476,000. 
(6) For the Army Reserve, $1,129,191,000. 
(7) For the Naval Reserve, $868,342,000. 
(8) For the Marine Corps Reserve, $100,283,000. 
(9) For the Air Force Reserve, $1,516,287,000. 
(10) For the Army National Guard, $2,361,808,000. 
(11) For the Air National Guard, $2,760,121,000. 
(12) For the Defense Inspector General, $138,226,000. 
(13) For the United States Court of Appeals for the Armed 
Forces, $6,521,000. 
(14) 
For 
Environmental 
Restoration, 
Defense, 
$1,422,200,000. 
(15) For Drug Interdiction and Counter-drug Activities, 
Defense-wide, $680,432,000. 
(16) For Medical Programs, Defense, $9,876,525,000. 
(17) For 
support 
for 
the 
1996 Summer 
Olympics, 
$15,000,000. 
(18) 
For 
Cooperative 
Threat 
Reduction 
programs, 
$300,000,000. 
(19) For Overseas Humanitarian, Disaster, and Civic Aid 
programs, $50,000,000. 
SEC. 302. WORKING CAPITAL FUNDS. 
Funds are hereby authorized to be appropriated for fiscal year 
1996 for the use of the Armed Forces and other activities and 
agencies of the Department of Defense for providing capital for 
working capital and revolving funds in amounts as follows: 
(1) 
For 
the 
Defense 
Business 
Operations 
Fund, 
$878,700,000. 
(2) For the National Defense Sealift Fund, $1,024,220,000. 
110 STAT. 246 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 303. ARMED FORCES RETIREMENT HOME. 
There is hereby authorized to be appropriated for fiscal year 
1996 from the Armed Forces Retirement Home Trust Fund the 
sum of $59,120,000 for the operation of the Armed Forces Retire-
ment Home, including the United States Soldiers' and Airmen's 
Home and the Naval Home. 
SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANS-
ACTION FUND. 
(a) TRANSFER AUTHORITY.—To the extent provided in appropria-
tions Acts, not more than $150,000,000 is authorized to be trans-
ferred from the National Defense Stockpile Transaction Fund to 
operation and maintenance accounts for fiscal year 1996 in amounts 
as follows: 
(1) For the Army, $50,000,000. 
(2) For the Navy, $50,000,000. 
(3) For the Air Force, $50,000,000. 
(b) TREATMENT OF TRANSFERS.—^Amounts transferred under 
this section— 
(1) shall be merged with, and be available for the same 
purposes and the same period as, the amounts in the accounts 
to which transferred; and 
(2) may not be expended for an item that has been denied 
authorization of appropriations by Congress. 
(c) RELATIONSHIP TO OTHER TRANSFER AUTHORITY.—^The trans-
fer authority provided in this section is in addition to the transfer 
authority provided in section 1001. 
SEC. 305. CIVIL AIR PATROL. 
Of the amounts authorized to be appropriated pursuant to 
this Act, there shall be made available to the Civil Air Patrol 
$24,500,000, of which $14,704,000 shall be made available for the 
Civil Air Patrol Corporation. 
Subtitle B—Depot-Level Activities 
10 u s e 2464 
SEC. 311. POLICY REGARDING PERFORMANCE OF DEPOT-LEVEL 
note. 
MAINTENANCE AND REPAIR FOR THE DEPARTMENT OF 
DEFENSE. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The Department of Defense does not have a comprehen-
sive policy regarding the performance of depot-level mainte-
nance and repair of military equipment. 
(2) The absence of such a policy has caused the Congress 
to establish guidelines for the performance of such functions. 
(3) It is essential to the national security of the United 
States that the Department of Defense maintain an organic 
capability within the department, including skilled personnel, 
technical competencies, equipment, and facilities, to perform 
depot-level maintenance and repair of military equipment in 
order to ensure that the Armed Forces of the United States 
are able to meet training, operational, mobilization, and emer-
gency requirements without impediment. 
(4) The organic capability of the Department of Defense 
to perform depot-level maintenance and repair of military 
equipment must satisfy known and anticipated core mainte-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 247 
nance and repair requirements across the full range of peace-
time and wartime scenarios. 
(5) Although it is possible that savings can be achieved 
by contracting with private-sector sources for the performance 
of some work currently performed by Department of Defense 
depots, the Department of Defense has not determined the 
type or amount of work that should be performed under contract 
with private-sector sources nor the relative costs and benefits 
of contracting for the performance of such work by those 
sources. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that 
there is a compelling need for the Department of Defense to articu-
late known and anticipated core maintenance and repair require-
ments, to organize the resources of the Department of Defense 
to meet those requirements economically and efficiently, and to 
determine what work should be performed by the private sector 
and how such work should be managed. 
(c) REQUIREMENT FOR POLICY.—Not later than March 31, 1996, Reports. 
the Secretary of Defense shall develop and report to the Committee 
on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a comprehensive policy 
on the performance of depot-level maintenance and repair for the 
Department of Defense that maintains the capability described 
in section 2464 of title 10, United States Code. 
(d) CONTENT OF POLICY.—In developing the policy, the Sec-
retary of Defense shall do each of the following: 
(1) Identify for each military department, with the concur-
rence of the Secretary of that military department, those depot-
level maintenance and repair activities that are necessary to 
ensure the depot-level maintenance and repair capability as 
required by section 2464 of title 10, United States Code. 
(2) Provide for performance of core depot-level maintenance 
and repair capabilities in facilities owned and operated by 
the United States. 
(3) Provide for the core capabilities to include sufficient 
skilled personnel, equipment, and facilities that— 
(A) is of the proper size (i) to ensure a ready and 
controlled source of technical competence and repair and 
maintenance capability necessary to meet the requirements 
of the National Military Strategy and other requirements 
for responding to mobilizations and military contingencies, 
and (ii) to provide for rapid augmentation in time of emer-
gency; and 
(B) is assig;ned sufficient workload to ensure cost effi-
ciency and technical proficiency in time of peace. 
(4) Address environmental liability. 
(5) In the case of depot-level maintenance and repair work-
loads in excess of the workload required to be performed by 
Department of Defense depots, provide for competition for those 
workloads between public and private entities when there is 
sufficient potential for realizing cost savings based on adequate 
private-sector competition and technical capabilities. 
(6) Address issues concerning exchange of technical data 
between the Federal Government and the private sector. 
(7) Provide for, in the Secretary's discretion and after con-
sultation with the Secretaries of the military departments, 
the transfer from one military department to another, in accord-
110 STAT. 248 
PUBLIC LAW 104-106—FEB. 10, 1996 
ance with merit-based selection processes, workload that sup-
ports the core depot-level maintenance and repair capabilities 
in facilities owned and operated by the United States. 
(8) Require that, in any competition for a workload 
(whether among private-sector sources or between depot-level 
activities of the Department of Defense and private-sector 
sources), bids are evaluated under a methodology that ensures 
that appropriate costs to the Government and the private sector 
are identified. 
(9) Provide for the performance of maintenance and repair 
for any new weapons systems defined as core, under section 
2464 of title 10, United States Code, in facilities owned and 
operated by the United States. 
(e) CONSIDERATIONS.—In developing the policy, the Secretary 
shall take into consideration the following matters: 
(1) The national security interests of the United States. 
(2) The capabilities of the public depots and the capabilities 
of businesses in the private sector to perform the maintenance 
and repair work required by the Department of Defense. 
(3) Any applicable recommendations of the Defense Base 
Closure and Realignment Commission that are required to 
be implemented under the Defense Base Closure and Realign-
ment Act of 1990. 
(4) The extent to which the readiness of the Armed Forces 
would be affected by a necessity to construct new facilities 
to accommodate any redistribution of depot-level maintenance 
and repair workloads that is made in accordance with the 
recommendation of the Defense Base Closure and Realignment 
Commission, under the Defense Base Closure and Realignment 
Act of 1990, that such workloads be consolidated at Department 
of Defense depots or private-sector facilities. 
(5) Analyses of costs and benefits of alternatives, including 
a comparative analysis of— 
(A) the costs and benefits, including any readiness 
implications, of any proposed policy to convert to contractor 
performance of depot-level maintenance and repair work-
loads where the workload is being performed by Depart-
ment of Defense personnel; and 
(B) the costs and benefits, including any readiness 
implications, of a policy to transfer depot-level maintenance 
and repair workloads among depots. 
(f) REPEAL OF 60/40 REQUIREMENT AND REQUIREMENT RELATING 
TO COMPETITION.—(1) Sections 2466 and 2469 of title 10, United 
States Code, are repealed. 
(2) The table of sections at the beginning of chapter 146 of 
such title is amended by striking out the items relating to sections 
2466 and 2469. 
Effective date. 
(3) The amendments made by paragraphs (1) and (2) shall 
take effect on the date (after the date of the enactment of this 
Act) on which legislation is enacted that contains a provision that 
specifically states one of the following: 
(A) "The policy on the performance of depot-level mainte-
nance and repair for the Department of Defense that was 
submitted by the Secretary of Defense to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives pursuant to section 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 249 
311 of the National Defense Authorization Act for Fiscal Year 
1996 is approved."; or 
(B) "The policy on the performance of depot-level mainte-
nance and repair for the Department of Defense that was 
submitted by the Secretary of Defense to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives pursuant to section 
311 of the National Defense Authorization Act for Fiscal Year 
1996 is approved with the following modifications:" (with the 
modifications being stated in matter appearing after the colon), 
(g) ANNUAL REPORT.—If legislation referred to in subsection 
(f)(3) is enacted, the Secretary of Defense shall, not later than 
March 1 of each year (beginning with the year after the year 
in which such legislation is enacted), submit to Congress a report 
that— 
(1) specifies depot maintenance core capability require-
ments determined in accordance with the procedures estab-
lished to comply with the policy prescribed pursuant to 
subsections (d)(2) and (d)(3); 
(2) specifies the planned amount of workload to be accom-
plished by the depot-level activities of each military department 
in support of those requirements for the following fiscal year; 
and 
(3) identifies the planned amount of workload, which— 
(A) shall be measured by direct labor hours and by 
amounts to be expended; and 
(B) shall be shown separately for each commodity 
group. 
(h) REVIEW BY GENERAL ACCOUNTING OFFICE.—(1) The Sec-
retary shall make available to the Comptroller General of the 
United States all information used by the Department of Defense 
in developing the policy under subsections (c) through (e) of this 
section. 
(2) Not later than 45 days after the date on which the Secretary Reports, 
submits to Congress the report required by subsection (c), the 
Comptroller General shall transmit to Congress a report containing 
a detailed analysis of the Secretary's proposed policy as reported 
under such subsection. 
(i) REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR WORK-
LOAD.—^Not later than March 31, 1996, the Secretary of Defense 
shall submit to Congress a report on the depot-level maintenance 
and repair workload of the Department of Defense. The report 
shall, to the maximum extent practicable, include the following: 
(1) An analysis of the need for and effect of the requirement 
under section 2466 of title 10, United States Code, that no 
more than 40 percent of the depot-level maintenance and repair 
work of the Department of Defense be contracted for perform-
ance by non-Government personnel, including a description of 
the effect on military readiness and the national security result-
ing from that requirement and a description of any specific 
difficulties experienced by the Department of Defense as a 
result of that requirement. 
(2) An analysis of the distribution during the five fiscal 
years ending with fiscal year 1995 of the depot-level mainte-
nance and repair workload of the Department of Defense 
between depot-level activities of the Department of Defense 
and non-Government personnel, measured by direct labor hours 
110 STAT. 250 
PUBLIC LAW 104-106—FEB. 10, 1996 
and by amounts expended, and displayed, for that five-year 
period and for each year of that period, so as to show (for 
each mihtary department (and separately for the Navy and 
Marine Corps)) such distribution. 
(3) A projection of the distribution during the five fiscal 
years beginning with fiscal year 1997 of the depot-level mainte-
nance and repair workload of the Department of Defense 
between depot-level activities of the Department of Defense 
and non-Government personnel, measured by direct labor hours 
and by amounts expended, and displayed, for that five-year 
period and for each year of that period, so as to show (for 
each military department (and separately for the Navy and 
Marine Corps)) such distribution that would be accomplished 
under a new policy as required under subsection (c). 
(j) OTHER REVIEW BY GENERAL ACCOUNTING OFFICE.—(1) The 
Comptroller General of the United States shall conduct an 
independent audit of the findings of the Secretary of Defense in 
the report under subsection (i). The Secretary of Defense shall 
provide to the Comptroller General for such purpose all information 
used by the Secretary in preparing such report. 
Reports. 
(2) Not later than 45 days after the date on which the Secretary 
of Defense submits to Congress the report required under subsection 
(i), the Comptroller General shall transmit to Congress a report 
containing a detailed analysis of the report submitted under that 
subsection. 
SEC. 312. MANAGEMENT OF DEPOT EMPLOYEES. 
(a) DEPOT EMPLOYEES.—Chapter 146 of title 10, United States 
Code, is amended by adding at the end the following new section: 
"§ 2472. Management of depot employees 
"(b) ANNUAL REPORT.—Not later than December 1 of each fiscal 
year, the Secretary of Defense shall submit to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on the number 
of employees employed and expected to be employed by the Depart-
ment of Defense during that fiscal year to perform depot-level 
maintenance and repair of materiel. The report shall indicate 
whether that number is sufficient to perform the depot-level mainte-
nance and repair functions for which funds are expected to be 
provided for that fiscal year for performance by Department of 
Defense employees.". 
(b) TRANSFER OF SUBSECTION.—Subsection (b) of section 2466 
of title 10, United States Code, is transferred to section 2472 
of such title, as added by subsection (a), redesignated as subsection 
(a), and inserted after the section heading. 
10 use 2472 
(c) SUBMISSION OF INITLVL REPORT.—The report under sub-
note, 
section (b) of section 2472 of title 10, United States Code, as 
added by subsection (a), for fiscal year 1996 shall be submitted 
not later than March 15, 1996 (notwithstanding the date specified 
in such subsection). 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 251 
(d) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following 
new item: 
"2472. Management of depot employees.". 
SEC. 313. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND 
NAVAL SHIPYARDS TO ENGAGE IN DEFENSE-RELATED 
PRODUCTION AND SERVICES. 
Section 1425(e) of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1684) is amended 
by striking out "September 30, 1995" and inserting in lieu thereof 
"September 30, 1996". 
SEC. 314. MODIFICATION OF NOTIFICATION REQUIREMENT REGARD-
ING USE OF CORE LOGISTICS FUNCTIONS WAIVER. 
Section 2464(b) of title 10, United States Code, is amended 
by striking out paragraphs (3) and (4) and inserting in lieu thereof 
the following new paragraph: 
"(3) A waiver under paragraph (2) may not take effect until 
the end of the 30-day period beginning on the date on which 
the Secretary submits a report on the waiver to the Committee 
on Armed Services and the Committee on Appropriations of the 
Senate and the Committee on National Security and the Committee 
on Appropriations of the House of Representatives.". 
Subtitle C—Environmental Provisions 
SEC. 321. REVISION OF REQUIREMENTS FOR AGREEMENTS FOR SERV-
ICES UNDER ENVIRONMENTAL RESTORATION PROGRAM. 
(a) REQUIREMENTS.—(1) Section 2701(d) of title 10, United 
States Code, is amended to read as follows: 
"(d) SERVICES OF OTHER AGENCIES.— 
"(1) IN GENERAL.—Subject to paragraph (2), the Secretary 
may enter into agreements on a reimbursable or other basis 
with any other Federal agency, or with any State or local 
government agency, to obtain the services of the agency to 
assist the Secretary in carrying out any of the Secretary's 
responsibilities under this section. Services which may be 
obtained under this subsection include the identification, inves-
tigation, and cleanup of any off-site contamination resulting 
from the release of a hazardous substance or waste at a facility 
under the Secretary's jurisdiction. 
"(2) 
LIMITATION 
ON 
REIMBURSABLE 
AGREEMENTS.—^An 
agreement with an agency under paragraph (1) may not provide 
for reimbursement of the agency for regulatory enforcement 
activities.". 
(2)(A) Except as provided in subparagraph (B), the total amount 
10 USC 2701 
of funds available for reimbursements under agreements entered note. 
into under section 2710(d) of title 10, United States Code, as amend-
ed by paragraph (1), in jfiscal year 1996 may not exceed $10,000,000. 
(B) The Secretary of Defense may pay in fiscal year 1996 
an amount for reimbursements under agreements referred to in 
subparagraph (A) in excess of the amount specified in that subpara-
graph for that fiscal year if— 
(i) the Secretary certifies to Congress that the payment 
Certification, 
of the amount under this subparagraph is essential for the 
110 STAT. 252 
PUBLIC LAW 104-106—FEB. 10, 1996 
management of the Defense Environmental Restoration Pro-
gram under chapter 160 of title 10, United States Code; and 
(ii) a period of 60 days has expired after the date on 
which the certification is received by Congress. 
10 use 2706 
(b) REPORT ON SERVICES OBTAINED.—The Secretary of Defense 
note. 
shall include in the report submitted to Congress with respect 
to fiscal year 1998 under section 2706(a) of title 10, United States 
Code, information on the services, if any, obtained by the Secretary 
during fiscal year 1996 pursuant to each agreement on a reimburs-
able basis entered into with a State or local government agency 
under section 2701(d) of title 10, United States Code, as amended 
by subsection (a). The information shall include a description of 
the services obtained under each agreement and the amount of 
the reimbursement provided for the services. 
SEC. 322. ADDITION 
OF 
AMOUNTS 
CREDITABLE 
TO 
DEFENSE 
ENVIRONMENTAL RESTORATION ACCOUNT. 
Section 2703(e) of title 10, United States Code, is amended 
to read as follows: 
"(e) AMOUNTS RECOVERED.—The following amounts shall be 
credited to the transfer account: 
"(1) Amounts recovered under CERCLA for response actions 
of the Secretary. 
"(2) Any other amounts recovered by the Secretary or the 
Secretary of the military department concerned from a contrac-
tor, insurer, surety, or other person to reimburse the Depart-
ment of Defense for any expenditure for environmental response 
activities.". 
SEC. 
323. 
USE 
OF 
DEFENSE 
ENVIRONMENTAL 
RESTORATION 
ACCOUNT. 
(a) GOAL FOR CERTAIN D E R A EXPENDITURES.—It shall be the 
goal of the Secretary of Defense to limit, by the end of fiscal 
year 1997, spending for administration, support, studies, and inves-
tigations associated with the Defense Environmental Restoration 
Account to 20 percent of the total funding for that account. 
(b) REPORT.—Not later than April 1, 1996, the Secretary shall 
submit to Congress a report that contains specific, detailed informa-
tion on— 
(1) the extent to which the Secretary has attained the 
goal described in subsection (a) as of the date of the submission 
of the report; and 
(2) if the Secretary has not attained such goal by such 
date, the actions the Secretary plans to take to attain the 
goal. 
SEC. 324. REVISION OF AUTHORITIES RELATING TO RESTORATION 
ADVISORY BOARDS. 
(a) REGULATIONS.—Paragraph (2) of subsection (d) of section 
2705 of title 10, United States Code, is amended to read as follows: 
"(2)(A) The Secretary shall prescribe regulations regarding the 
establishment, characteristics, composition, and funding of restora-
tion advisory boards pursuant to this subsection. 
"(B) The issuance of regulations under subparagraph (A) shall 
not be a precondition to the establishment of restoration advisory 
boards under this subsection.". 
(b) FUNDING FOR ADMINISTRATIVE EXPENSES.—Paragraph (3) 
of such subsection is amended to read as follows: 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 253 
"(3) The Secretary may authorize the commander of an installa-
tion (or, if there is no such commander, an appropriate official 
of the Department of Defense designated by the Secretary) to pay 
routine administrative expenses of a restoration advisory board 
established for that installation. Such payments shall be made 
from funds available under subsection (g).". 
(c) TECHNICAL ASSISTANCE.—Such section is further amended 
by striking out subsection (e) and inserting in lieu thereof the 
following new subsection (e): 
"(e) TECHNICAL ASSISTANCE.—(1) The Secretary may, upon the 
request of the technical review committee or restoration advisory 
board for an installation, authorize the commander of the installa-
tion (or, if there is no such commander, an appropriate official 
of the Department of Defense designated by the Secretary) to obtain 
for the committee or advisory board, as the case may be, from 
private sector sources technical assistance for interpreting scientific 
and engineering issues with regard to the nature of environmental 
hazards at the installation and the restoration activities conducted, 
or proposed to be conducted, at the installation. The commander 
of an installation (or, if there is no such commander, an appropriate 
official of the Department of Defense designated by the Secretary) 
shall use funds made available under subsection (g) for obtaining 
assistance under this paragraph. 
"(2) The commander of an installation (or, if there is no such 
commander, an appropriate official of the Department of Defense 
designated by the Secretary) may obtain technical assistance under 
paragraph (1) for a technical review committee or restoration 
advisory board only if— 
"(A) the technical review committee or restoration advisory 
board demonstrates that the Federal, State, and local agencies 
responsible for overseeing environmental restoration at the 
installation, and available Department of Defense personnel, 
do not have the technical expertise necessary for achieving 
the objective for which the technical assistance is to be obtained; 
or 
"(B) the technical assistance— 
"(i) is likely to contribute to the efficiency, effectiveness, 
or timeliness of environmental restoration activities at the 
installation; and 
"(ii) is likely to contribute to community acceptance 
of environmental restoration activities at the installation.". 
(d) FUNDING.—(1) Such section is further amended by adding 
at the end the following new subsection: 
"(g) FUNDING.—The Secretary shall, to the extent provided in 
appropriations Acts, make funds available for 
administrative 
expenses and technical assistance under this section using funds 
in the following accounts: 
"(1) In the case of a military installation not approved 
for closure pursuant to a base closure law, the Defense Environ-
mental Restoration Account established under section 2703(a) 
of this title. 
"(2) In the case of an installation approved for closure 
pursuant to such a law, the Department of Defense Base Clo-
sure Account 1990 established under section 2906(a) of the 
Defense Base Closure and Realignment Act of 1990 (part A 
of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).". 
110 STAT. 254 
PUBLIC LAW 104-106—FEB. 10, 1996 
10 use 2705 
(2)(A) Subject to subparagraph (B), the total amount of funds 
iiote. 
made available under section 2705(g) of title 10, United States 
Code, as added by paragraph (1), for fiscal year 1996 may not 
exceed $6,000,000. 
(B) Amounts may not be made available under subsection (g) 
of such section 2705 after September 15, 1996, unless the Secretary 
of Defense publishes proposed final or interim final regulations 
required under subsection (d) of such section, as amended by sub-
section (a). 
(e) DEFINITION.—Such section is further amended by adding 
after subsection (g) (as added by subsection (d)) the following new 
subsection: 
"(h) DEFINITION.—In this section, the term 'base closure law' 
means the following: 
"(1) Title II of the Defense Authorization Amendments 
and Base Closure and Realignment Act (Public Law 100-526; 
10 U.S.C. 2687 note). 
"(2) The Defense Base Closure and Realignment Act of 
1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
2687 note). 
"(3) Section 2687 of this title.". 
(f) REPORTS ON ACTIVITIES OF TECHNICAL REVIEW COMMITTEES 
AND RESTORATION ADVISORY BOARDS.—Section 2706(a)(2) of title 
10, United States Code, is amended by adding at the end the 
following: 
"(J) A statement of the activities, if any, including expendi-
tures for administrative expenses and technical assistance 
under section 2705 of this title, of the technical review commit-
tee or restoration advisory board established for the installation 
under such section during the preceding fiscal year.". 
SEC. 
3
2
5
. 
DISCHARGES 
FROM 
VESSELS 
OF 
THE 
ARMED 
FORCES. 
33 use 1322 
(a) PURPOSES.—The purposes of this section are to— 
note. 
(1) enhance the operational flexibility of vessels of the 
Armed Forces domestically and internationally; 
(2) stimulate the development of innovative vessel pollution 
control technology; and 
(3) advance the development by the United States Navy 
of environmentally sound ships. 
(b) 
UNIFORM 
NATIONAL 
DISCHARGE 
STANDARDS 
DEVELOP-
MENT.—Section 312 of the Federal Water Pollution Control Act 
(33 U.S.C. 1322) is amended by adding at the end the following: 
"(n) UNIFORM NATIONAL DISCHARGE STANDARDS FOR VESSELS 
OF THE ARMED FORCES.— 
"(1) APPLICABILITY.—^This subsection shall apply to vessels 
of the Armed Forces and discharges, other than sewage, inciden-
tal to the normal operation of a vessel of the Armed Forces, 
unless the Secretary of Defense finds that compliance with 
this subsection would not be in the national security interests 
of the United States. 
"(2) DETERMINATION OF DISCHARGES REQUIRED TO BE CON-
TROLLED B
Y MARINE POLLUTION CONTROL DEVICES.— 
"(A) IN GENERAL.—^The Administrator and the Sec-
retary of Defense, after consultation with the Secretary 
of the department in which the Coast Guard is operating, 
the Secretary of Commerce, and interested States, shall 
jointly determine the discharges incidental to the normal 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 255 
operation of a vessel of the Armed Forces for which it 
is reasonable and practicable to require use of a marine 
pollution control device to mitigate adverse impacts on 
the marine environment. Notwithstanding subsection (a)(1) 
of section 553 of title 5, United States Code, the Adminis-
trator and the Secretary of Defense shall promulgate the 
determinations in accordance with such section. The Sec-
retary of Defense shall require the use of a marine pollution 
control device on board a vessel of the Armed Forces in 
any case in which it is determined that the use of such 
a device is reasonable and practicable. 
"(B) CONSIDEIMTIONS.—In making a determination 
under subparagraph (A), the Administrator and the Sec-
retary of Defense shall take into consideration— 
"(i) the nature of the discharge; 
"(ii) the environmental effects of the discharge; 
"(iii) the practicability of using the marine pollu-
tion control device; 
"(iv) the effect that installation or use of the 
marine pollution control device would have on the oper-
ation or operational capability of the vessel; 
"(v) applicable United States law; 
"(vi) applicable international standards; and 
"(vii) the economic costs of the installation and 
use of the marine pollution control device. 
"(3) PERFORMANCE STANDARDS FOR MARINE POLLUTION CON-
TROL DEVICES.— 
"(A) IN GENERAL.—For each discharge for which a 
marine pollution control device is determined to be required 
under paragraph (2), the Administrator and the Secretary 
of Defense, in consultation with the Secretary of the depart-
ment in which the Coast Guard is operating, the Secretary 
of State, the Secretary of Commerce, other interested Fed-
eral agencies, and interested States, shall jointly promul-
gate Federal standards of performance for each marine 
pollution control device required with respect to the dis-
charge. Notwithstanding subsection (a)(1) of section 553 
of title 5, United States Code, the Administrator and the 
Secretary of Defense shall promulgate the standards in 
accordance with such section. 
"(B) 
CONSIDERATIONS.—In 
promulgating 
standards 
under this paragraph, the Administrator and the Secretary 
of Defense shall take into consideration the matters set 
forth in paragraph (2)(B). 
"(C) 
CLASSES, TYPES, AND SIZES OF VESSELS.—The 
standards promulgated under this paragraph may— 
"(i) distingoiish among classes, types, and sizes 
of vessels; 
"(ii) distinguish between new and existing vessels; 
and 
"(iii) provide for a waiver of the applicability of 
the standards as necessary or appropriate to a particu-
lar class, type, age, or size of vessel. 
"(4) REGULATIONS FOR USE OF MARINE POLLUTION CONTROL 
DEVICES.—^The Secretary of Defense, after consultation with 
the Administrator and the Secretary of the department in which 
the Coast Guard is operating, shall promulgate such regulations 
110 STAT. 256 
PUBLIC LAW 104-106—FEB. 10, 1996 
governing the design, construction, installation, and use of 
marine pollution control devices on board vessels of the Armed 
Forces as are necessary to achieve the standards promulgated 
under paragraph (3). 
"(5) DEADLINES; EFFECTIVE DATE.— 
"(A) DETERMINATIONS.—The Administrator and the 
Secretary of Defense shall— 
"(i) make the initial determinations under para-
graph (2) not later than 2 years after the date of 
the enactment of this subsection; and 
"(ii) every 5 years— 
"(I) review the determinations; and 
"(II) if necessary, revise the determinations 
based on significant new information. 
"(B) STANDARDS.—The Administrator and the Sec-
retary of Defense shall— 
"(i) promulgate standards of performance for a 
marine pollution control device under paragraph (3) 
not later than 2 years after the date of a determination 
under paragraph (2) that the marine pollution control 
device is required; and 
"(ii) every 5 years— 
"(I) review the standards; and 
"(II) if necessary, revise the standards, consist-
ent with paragraph (3)(B) and based on significant 
new information. 
"(C) REGULATIONS.—The Secretary of Defense shall 
promulgate regulations with respect to a marine pollution 
control device under paragraph (4) as soon as practicable 
after the Administrator and the Secretary of Defense 
promulgate standards with respect to the device under 
paragraph (3), but not later than 1 year after the Adminis-
trator and the Secretary of Defense promulgate the stand-
ards. The regulations promulgated by the Secretary of 
Defense under paragraph (4) shall become effective upon 
promulgation unless another effective date is specified in 
the regulations. 
"(D) PETITION FOR REVIEW.—The Governor of any State 
may submit a petition requesting that the Secretary of 
Defense and the Administrator review a determination 
under paragraph (2) or a standard under paragraph (3), 
if there is significant new information, not considered pre-
viously, that could reasonably result in a change to the 
particular determination or standard after consideration 
of the matters set forth in paragraph (2)(B). The petition 
shall be accompanied by the scientific and technical 
information on which the petition is based. The Adminis-
trator and the Secretary of Defense shall grant or deny 
the petition not later than 2 years after the date of receipt 
of the petition. 
"(6) EFFECT ON OTHER LAWS.— 
"(A) PROHIBITION ON REGULATION BY STATES OR POLITI-
CAL SUBDIVISIONS OF STATES.—Beginning on the effective 
date of— 
"(i) a determination under paragraph (2) that it 
is not reasonable and practicable to require use of 
a marine pollution control device regarding a particular 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 257 
discharge incidental to the normal operation of a vessel 
of the Armed Forces; or 
"(ii) regulations promulgated by the Secretary of 
Defense under paragraph (4); 
except as provided in paragraph (7), neither a State nor 
a political subdivision of a State may adopt or enforce 
any statute or regulation of the State or political subdivi-
sion with respect to the discharge or the design, construc-
tion, installation, or use of any marine pollution control 
device required to control discharges from a vessel of the 
Armed Forces. 
"(B) FEDERAI. LAWS.—This subsection shall not affect 
the application of section 311 to discharges incidental to 
the normal operation of a vessel. 
"(7) ESTABLISHMENT OF STATE NO-DISCHARGE ZONES.— 
"(A) STATE PROHIBITION.— 
"(i) IN GENERAL.—^After the effective date of^ 
"(I) a determination under paragraph (2) that 
it is not reasonable and practicable to require use 
of a marine pollution control device regarding a 
particular discharge incidental to the normal oper-
ation of a vessel of the Armed Forces; or 
"(II) regulations promulgated by the Secretary 
of Defense under paragraph (4); 
if a State determines that the protection and enhance-
ment of the quality of some or all of the waters within 
the State require greater environmental protection, the 
State may prohibit 1 or more discharges incidental 
to the normal operation of a vessel, whether treated 
or not treated, into the waters. No prohibition shall 
apply until the Administrator makes the determina-
tions described in subclauses (II) and (III) of subpara-
graph (B)(i). 
"(ii) 
DOCUMENTATION.—To the extent that 
a 
prohibition under this paragraph would apply to ves-
sels of the Armed Forces and not to other types of 
vessels, the State shall document the technical or 
environmental basis for the distinction. 
"(B) PROHIBITION BY THE ADMINISTRATOR.— 
"(i) IN GENERAL.—Upon application of a State, the Regulations. 
Administrator shall by regulation prohibit the dis-
charge from a vessel of 1 or more discharges incidental 
to the normal operation of a vessel, whether treated 
or not treated, into the waters covered by the applica-
tion if the Administrator determines that— 
"(I) the protection and enhancement of the 
quality of the specified waters within the State 
require a prohibition of the discharge into the 
waters; 
"(II) adequate facilities for the safe and sani-
tary removal of the discharge incidental to the 
normal operation of a vessel are reasonably avail-
able for the waters to which the prohibition would 
apply; and 
"(III) the prohibition will not have the effect 
of discriminating against a vessel of the Armed 
Forces by reason of the ownership or operation 
110 STAT. 258 
PUBLIC LAW 104-106—FEB. 10, 1996 
by the Federal Government, or the miUtary func-
tion, of the vessel. 
"(ii) 
APPROVAL OR DISAPPROVAL.—The Adminis-
trator shall approve or disapprove an application 
submitted under clause (i) not later than 90 days after 
the date on which the application is submitted to the 
Administrator. 
Notwithstanding 
clause (i)(II), the 
Administrator shall not disapprove an application for 
the sole reason that there are not adequate facilities 
to remove any discharge incidental to the normal oper-
ation of a vessel from vessels of the Armed Forces. 
"(C) 
APPLICABILITY TO FOREIGN FLAGGED VESSELS.— 
A prohibition under this paragraph— 
"(i) shall not impose any design, construction, man-
ning, or equipment standard on a foreign flagged vessel 
engaged in innocent passage unless the prohibition 
implements a generally accepted international rule or 
standard; and 
"(ii) that relates to the prevention, reduction, and 
control of pollution shall not apply to a foreign flagged 
vessel engaged in transit passage unless the prohibi-
tion implements an applicable international regulation 
regarding the discharge of oil, oily waste, or any other 
noxious substance into the waters. 
"(8) 
PROHIBITION RELATING TO VESSELS OF THE ARMED 
FORCES.—After the effective date of the regulations promul-
gated by the Secretary of Defense under paragraph (4), it 
shall be unlawful for any vessel of the Armed Forces subject 
to the regulations to— 
"(A) operate in the navigable waters of the United 
States or the waters of the contiguous zone, if the vessel 
is not equipped with any required marine pollution control 
device meeting standards established under this subsection; 
or 
"(B) discharge overboard any discharge incidental to 
the normal operation of a vessel in waters with respect 
to which a prohibition on the discharge has been estab-
lished under paragraph (7). 
"(9) ENFORCEMENT.—^This subsection shall be enforceable, 
as provided in subsections (j) and (k), against any agency of 
the United States responsible for vessels of the Armed Forces 
notwithstanding any immunity asserted by the agency.", 
(c) CONFORMING AMENDMENTS.— 
(1) DEFINITIONS.—Section 312(a) of the Federal Water 
Pollution Control Act (33 U.S.C. 1322(a)) is amended— 
(A) in paragraph (8)— 
(i) by striking "or"; and 
(ii) by inserting "or agency of the United States," 
after "association,"; 
(B) in paragraph (11), by striking the period at the 
end and inserting a semicolon; and 
(C) by adding at the end the following: 
"(12) 'discharge incidental to the normal operation of a 
vessel'— 
"(A) means a discharge, including— 
"(i) graywater, bilge water, cooling water, weather 
deck runoff, ballast water, oil water separator effluent. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 259 
and any other pollutant discharge from the operation 
of a marine propulsion system, shipboard maneuvering 
system, crew habitability system, or installed major 
equipment, such as an aircraft carrier elevator or a 
catapult, or from a protective, preservative, or absorp-
tive application to the hull of the vessel; and 
"(ii) a discharge in connection with the testing, 
maintenance, and repair of a system described in 
clause (i) whenever the vessel is waterborne; and 
"(B) does not include— 
"(i) a discharge of rubbish, trash, garbage, or other 
such material discharged overboard; 
"(ii) an air emission resulting from the operation 
of a vessel propulsion system, motor driven equipment, 
or incinerator; or 
"(iii) a discharge that is not covered by part 122.3 
of title 40, Code of Federal Regulations (as in effect 
on the date of the enactment of subsection (n)); 
"(13) 'marine pollution control device' means any equipment 
or management practice, for installation or use on board a 
vessel of the Armed Forces, that is— 
"(A) designed to receive, retain, treat, control, or dis-
charge a discharge incidental to the normal operation of 
a vessel; and 
"(B) determined by the Administrator and the Sec-
retary of Defense to be the most effective equipment or 
management practice to reduce the environmental impacts 
of the discharge consistent with the considerations set forth 
in subsection (n)(2)(B); and 
"(14) 'vessel of the Armed Forces' means— 
"(A) any vessel owned or operated by the Department 
of Defense, other than a time or voyage chartered vessel; 
and 
"(B) any vessel owned or operated by the Department 
of Transportation that is designated by the Secretary of 
the department in which the Coast Guard is operating 
as a vessel equivalent to a vessel described in subparagraph 
(A).". 
(2) ENFORCEMENT.—^The first sentence of section 312(j) of 
the Federal Water Pollution Control Act (33 U.S.C. 1322(j)) 
is amended— 
(A) by striking "of this section or" and inserting a 
comma; and 
(B) by striking "of this section shall" and inserting 
", or subsection (n)(8) shall". 
(3) OTHER DEFINITIONS.—Subparagraph (A) of the second 
sentence of section 502(6) of the Federal Water Pollution Con-
trol Act (33 U.S.C. 1362(6)) is amended by striking "'sewage 
from vessels'" and inserting "'sewage from vessels or a dis-
charge incidental to the normal operation of a vessel of the 
Armed Forces'". 
(d) COOPERATION IN STANDARDS DEVELOPMENT.—The Adminis- 
33 use 1322 
trator of the Environmental Protection Agency and the Secretary note. 
of Defense may, by mutual agreement, with or without reimburse-
ment, provide for the use of information, reports, personnel, or 
other resources of the Environmental Protection Agency or the 
Department of Defense to carry out section 312(n) of the Federal 
110 STAT. 260 
PUBLIC LAW 104-106—FEB. 10, 1996 
Water Pollution Control Act (as added by subsection (b)), including 
the use of the resources— 
(1) to determine— 
(A) the nature and environmental effect of discharges 
incidental to the normal operation of a vessel of the Armed 
Forces; 
(B) the practicability of using marine pollution control 
devices on vessels of the Armed Forces; and 
(C) the effect that installation or use of marine pollu-
tion control devices on vessels of the Armed Forces would 
have on the operation or operational capability of the ves-
sels; and 
(2) to establish performance standards for marine pollution 
control devices on vessels of the Armed Forces. 
Subtitle D—Commissaries and 
Nonappropriated Fund Instrumentalities 
SEC. 331. OPERATION OF COMMISSARY SYSTEM. 
(a) COOPERATION WITH OTHER ENTITIES.—Section 2482 of title 
10, United States Code, is amended— 
(1) in the section heading, by striking out "private"; 
(2) by inserting "(a) PRIVATE OPERATION.—" before "Private 
persons"; and 
(3) by adding at the end the following new subsection: 
"(b) CONTRACTS WITH OTHER AGENCIES AND INSTRUMENTAL-
ITIES.—<1) The Defense Commissary Agency, and any other agency 
of the Department of Defense that supports the operation of the 
commissary system, may enter into a contract or other agreement 
with another department, agency, or instrumentality of the Depart-
ment of Defense or another Federal agency to provide services 
beneficial to the efficient management and operation of the com-
missary system. 
"(2) A commissary store operated by a nonappropriated fund 
instrumentality of the Department of Defense shall be operated 
in accordance with section 2484 of this title. Subject to such section, 
the Secretary of Defense may authorize a transfer of goods, supplies, 
and facilities of, and funds appropriated for, the Defense Com-
missary Agency or any other agency of the Department of Defense 
that supports the operation of the commissary system to a 
nonappropriated fund instrumentality for the operation of a com-
missary store.". 
(b) CLERICAL AMENDMENT.—The item relating to such section 
in the table of sections at the beginning of chapter 147 of such 
title is amended to read as follows: 
"2482. Commissary stores: operation.". 
S E C . 332. LIMITED 
RELEASE 
OF 
COMMISSARY 
STORES 
SALES 
INFORMATION TO MANUFACTURERS, 
DISTRIBUTORS, 
AND 
O T H E R V E N D O R S DOING BUSINESS WITH DEFENSE 
COMMISSARY AGENCY. 
Section 2487(b) of title 10, United States Code, is amended 
in the second sentence by inserting before the period the following: 
"unless the agreement is between the Defense Commissary Agency 
and a manufacturer, distributor, or other vendor doing business 
with the Agency and is restricted to information directly related 
PUBLIC LAW 104-10&—FEB. 10, 1996 
110 STAT. 261 
to merchandise provided by that manufacturer, distributor, or 
vendor". 
SEC. 333. ECONOMICAL DISTRIBUTION OF DISTILLED SPIRITS BY 
NONAPPROPRIATED FUND INSTRUMENTALITIES. 
(a) ECONOMICAL DISTRIBUTION.—Subsection (a)(1) of section 
2488 of title 10, United States Code, is amended by inserting 
after "most competitive source" the following: "and distributed in 
the most economical manner". 
(b) 
DETERMINATION 
OF 
MOST 
ECONOMICAL DISTRIBUTION 
METHOD.—Such section is further amended— 
(1) by redesignating subsection (c) as subsection (d); and 
(2) by inserting after subsection (b) the following new sub-
section: 
"(c)(1) In the case of covered alcoholic beverage purchases of 
distilled spirits, to determine whether a nonappropriated fund 
instrumentality of the Department of Defense provides the most 
economical method of distribution to package stores, the Secretary 
of Defense shall consider all components of the distribution costs 
incurred by the nonappropriated fund instrumentality, such as over-
head costs (including costs associated with management, logistics, 
administration, depreciation, and utilities), the costs of carrying 
inventory, and handling and distribution costs. 
"(2) If the use of a private distributor would subject covered 
alcoholic beverage purchases of distilled spirits to direct or indirect 
State taxation, a nonappropriated fund instrumentality shall be 
considered to be the most economical method of distribution regard-
less of the results of the determination under paragraph (1). 
"(3) The Secretary shall use the agencies performing audit 
functions on behalf of the armed forces and the Inspector General 
of the Department of Defense to make determinations under this 
subsection.". 
SEC. 334. TRANSPORTATION BY COMMISSARIES AND EXCHANGES TO 
OVERSEAS LOCATIONS. 
(a) IN GENERAL.—Chapter 157 of title 10, United States Code, 
is amended by adding at the end the following new section: 
"§2643. Commissary and exchange services: transportation 
overseas 
"The Secretary of Defense shall authorize the officials respon-
sible for operation of commissaries and military exchanges to nego-
tiate directly with private carriers for the most cost-effective 
transportation of commissary and exchange supplies by sea without 
relying on the Military Sealift Command or the Military Traffic 
Management Command. Section 2631 of this title, regarding the 
preference for vessels of the United States or belonging to the 
United States in the transportation of supplies by sea, shall apply 
to the negotiation of transportation contracts under the authority 
of this section.". 
110 STAT. 262 
PUBLIC LAW 104-106—FEB. 10, 1996 
10 u s e 2241 
note. 
Regulations. 
Termination 
date. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following 
new item: 
"2643. Commissary and exchange services: transportation overseas.". 
SEC. 335. DEMONSTRATION PROJECT FOR UNIFORM FUNDING OF 
MORALE, WELFARE, AND RECREATION ACTIVITIES AT CER-
TAIN MILITARY INSTALLATIONS. 
(a) DEMONSTRATION PROJECT REQUIRED.—(1) The Secretary of 
Defense shall conduct a demonstration project to evaluate the fea-
sibility of using only nonappropriated funds to support morale, 
welfare, and recreation programs at military installations in order 
to facilitate the procurement of property and services for those 
programs and the management of employees used to carry out 
those programs. 
(2) Under the demonstration project— 
(A) procurements of property and services for programs 
referred to in paragraph (1) may be carried out in accordance 
with laws and regulations applicable to procurements paid for 
with nonappropriated funds; and 
(B) appropriated funds available for such programs may 
be expended in accordance with laws applicable to expenditures 
of nonappropriated funds as if the appropriated funds were 
nonappropriated funds. 
(3) The Secretary shall prescribe regulations to carry out para-
graph (2). The regulations shall provide for financial management 
and accounting of appropriated funds expended in accordance with 
subparagraph (B) of such paragraph. 
(b) COVERED MILITARY INSTALLATIONS.—The Secretary shall 
select not less than three and not more than six military installa-
tions to participate in the demonstration project. 
(c) PERIOD OF DEMONSTRATION PROJECT.—The demonstration 
project shall terminate not later than September 30, 1998. 
(d) EFFECT ON EMPLOYEES.—For the purpose of testing fiscal 
accounting procedures, the Secretary may convert, for the duration 
of the demonstration project, the status of an employee who carries 
out a program referred to in subsection (a)(1) from the status 
of an employee paid by appropriated funds to the status of a 
nonappropriated fund instrumentality employee, except that such 
conversion may occur only— 
(1) if the employee whose status is to be converted— 
(A) is fully informed of the effects of such conversion 
on the terms and conditions of the emplojrment of that 
employee for purposes of title 5, United States Code, and 
on the benefits provided to that employee under such title; 
and 
(B) consents to such conversion; or 
(2) in a manner which does not affect such terms and 
conditions of employment or such benefits. 
(e) REPORTS.—(1) Not later than six months after the date 
of the enactment of this Act, the Secretary shall submit to Congress 
an interim report on the implementation of this section. 
(2) Not later than December 31, 1998, the Secretary shall 
submit to Congress a final report on the results of the demonstration 
project. The report shall include a comparison of— 
(A) the cost incurred under the demonstration project in 
using employees paid by appropriated funds together with 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 263 
nonappropriated fund instrumentality employees to carry out 
the programs referred to in subsection (a)(1); and 
(B) an estimate of the cost that would have been incurred 
if only nonappropriated fund instrumentality employees had 
been used to carry out such programs. 
SEC. 336. OPERATION OF COMBINED EXCHANGE AND COMMISSARY 
STORES. 
(a) IN GENERAL.—(1) Chapter 147 of title 10, United States 
Code, is amended by adding at the end the following new section: 
'*§ 2490a. Combined exchange and commissary stores 
"(a) AUTHORITY.—The Secretary of Defense may authorize a 
nonappropriated 
fund 
instrumentality to operate a military 
exchange and a commissary store as a combined exchange and 
commissary store on a military installation. 
"(b) LIMITATIONS.—(1) Not more than ten combined exchange 
and commissary stores may be operated pursuant to this section. 
"(2) The Secretary may select a military installation for the 
operation of a combined exchange and commissary store under 
this section only if— 
"(A) the installation is to be closed, or has been or is 
to be realigned, under a base closure law; or 
"(B) a military exchange and a commissary store are oper-
ated at the installation by separate entities at the time of, 
or immediately before, such selection and it is not economically 
feasible to continue that separate operation. 
"(c) OPERATION AT CARSWELL FIELD.—Combined exchange and Texas, 
commissary stores operated under this section shall include the 
combined exchange and commissary store that is operated at the 
Naval Air Station Fort Worth, Joint Reserve Center, Carswell Field, 
Texas, under the authority provided in section 375 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337; 108 Stat. 2736). 
"(d) ADJUSTMENTS AND SURCHARGES.—^Adjustments to, and sur-
charges on, the sales price of a grocery food item sold in a combined 
exchange and commissary store under this section shall be provided 
for in accordance with the same laws that govern such adjustments 
and surcharges for items sold in a commissary store of the Defense 
Commissary Agency. 
"(e) USE OF APPROPRIATED FUNDS.—(1) If a nonappropriated 
fund instrumentality incurs a loss in operating a combined exchange 
and commissary store at a military installation under this section 
as a result of the requirement set forth in subsection (d), the 
Secretary may authorize a transfer of funds available for the 
Defense 
Commissary 
Agency to the nonappropriated 
fund 
instrumentality to offset the loss. 
"(2) The total amount of appropriated funds transferred during 
a fiscal year to support the operation of a combined exchange 
and commissary store at a military installation under this section 
may not exceed an amount that is equal to 25 percent of the 
amount of appropriated funds that was provided for the operation 
of the commissary store of the Defense Commissary Agency on 
that installation during the last full fiscal year of operation of 
that commissary store. 
"(f) DEFINITIONS.—In this section: 
110 STAT. 264 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(1) The term 'nonappropriated fund 
instrumentality' 
means the Army and Air Force Exchange Service, Navy 
Exchange Service Command, Marine Corps exchanges, or any 
other instrumentaUty of the United States under the jurisdic-
tion of the Armed Forces which is conducted for the comfort, 
pleasure, contentment, or physical or mental improvement of 
members of the Armed Forces. 
"(2) The term 'base closure law' has the meaning given 
such term by section 2667(g) of this title.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"2490a. Combined exchange and commissary stores.". 
(b) CONFORMING AMENDMENT.—Section 375 
of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337; 108 Stat. 2736) is amended by striking out ", until December 
31, 1995,". 
SEC. 337. DEFERRED PAYMENT PROGRAMS OF MILITARY EXCHANGES. 
Contracts. 
(a) USE OF COMMERCIAL BANKING INSTITUTION.—(1) A s SOon 
as practicable after the date of the enactment of this Act, the 
Secretary of Defense shall seek to enter into an agreement with 
a commercial banking institution under which the institution agrees 
to finance and operate the deferred payment program of the Army 
and Air Force Exchange Service and the deferred payment program 
of the Navy Exchange Service Command. The Secretary shall use 
competitive procedures to enter into an agreement under this para-
graph. 
(2) In order to facilitate the transition of the operation of 
the programs referred to in paragraph (1) to commercial operation 
under an agreement described in that paragraph, the Secretary 
may initially limit the scope of any such agreement so as to apply 
to only one of the programs. 
(b) REPORT.—Not later than December 31, 1995, the Secretary 
shall submit to Congress a report on the implementation of this 
section. The report shall also include an analysis of the impact 
of the deferred payment programs referred to in subsection (a)(1), 
including the impact of the default and collection procedures under 
such programs, on members of the Armed Forces and their families. 
SEC. 338. AVAILABILITY OF FUNDS TO OFFSET EXPENSES INCURRED 
BY 
ARMY AND AIR FORCE EXCHANGE SERVICE ON 
ACCOUNT OF TROOP REDUCTIONS IN EUROPE. 
Of funds authorized to be appropriated under section 301(5), 
not less than $70,000,000 shall be available to the Secretary of 
Defense for transfer to the Army and Air Force Exchange Service 
to offset expenses incurred by the Army and Air Force Exchange 
Service on account of reductions in the number of members of 
the United States Armed Forces assigned to permanent duty ashore 
in Europe. 
SEC. 339. STUDY REGARDING IMPROVING EFFICIENCIES IN OPER-
ATION OF MILITARY EXCHANGES AND OTHER MORALE, 
AVELFARE, AND RECREATION ACTIVITIES AND COM-
MISSARY STORES. 
(a) STUDY REQUIRED.—The Secretary of Defense shall conduct 
a study regarding the manner in which greater efficiencies can 
be achieved in the operation of— 
(1) military exchanges; 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 265 
(2) other instrumentalities of the United States under the 
jurisdiction of the Armed Forces which are conducted for the 
comfort, pleasure, contentment, or physical or mental improve-
ment of members of the Armed Forces; and 
(3) commissary stores. 
(b) REPORT OF STUDY.—^Not later than March 1, 1996, the 
Secretary of Defense shall submit to Congress a report describing 
the results of the study and containing such recommendations 
as the Secretary considers appropriate to implement options identi-
fied in the study to achieve the greater efficiencies referred to 
in subsection (a). 
SEC. 340. REPEAL OF REQUIREMENT TO CONVERT SfflPS' STORES TO 
NONAPPROPRIATED FUND INSTRUMENTALITIES. 
(a) REPEAL.—Section 371 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 7604 
note) is amended— 
(1) by striking out subsections (a) and (b); and 
(2) by redesignating subsections (c) and (d) as subsections 
(a) and (b), respectively. 
(b) INSPECTOR GENERAL REVIEW.—Not later than April 1, 1996, Reports, 
the Inspector General of the Department of Defense shall submit 
to Congress a report that reviews the report on the costs and 
benefits of converting to operation of Navy ships' stores by 
nonappropriated fund instrumentalities that the Navy Audit Agency 
prepared in connection with the postponement of the deadline for 
the conversion provided for in section 374(a) of the National Defense 
Authorization Act for Fiscal Year 1995 (Pubhc Law 103-337; 108 
Stat. 2736). 
SEC. 341. DISPOSITION OF EXCESS MORALE, WELFARE, AND RECRE-
ATION FUNDS. 
Section 2219 of title 10, United States Code, is amended— 
(1) in the first sentence, by striking out "a military depart-
ment" and inserting in lieu thereof "an armed force"; 
(2) in the second sentence— 
(A) by striking out ", department-wide"; and 
(B) by striking out "of the military department" and 
inserting in lieu thereof "for that armed force"; and 
(3) by adding at the end the following: "This section does 
not apply to the Coast Guard.". 
SEC. 342. CLARIFICATION OF ENTITLEMENT TO USE OF MORALE, WEL-
FARE, AND RECREATION FACILITIES BY MEMBERS OF 
RESERVE COMPONENTS AND DEPENDENTS. 
(a) IN GENERAL.—Section 1065 of title 10, United States Code, 
is amended to read as follows: 
"§ 1065. Morale, welfare, and recreation retail facilities: use 
by members of reserve components and depend-
ents 
"(a) MEMBERS OF THE SELECTED RESERVE.—^A member of the 
Selected Reserve in good standing (as determined by the Secretary 
concerned) shall be permitted to use MWR retail facilities on the 
same basis as members on active duty. 
"(b) MEMBERS OF READY RESERVE NOT IN SELECTED RESERVE.— 
Subject to such regulations as the Secretary of Defense may pre-
scribe, a member of the Ready Reserve (other than members of 
29-194 O - 96 - 10 : QL 3 Part 1 
110 STAT. 266 
PUBLIC LAW 104-106—FEB. 10, 1996 
the Selected Reserve) may be permitted to use MWR retail facilities 
on the same basis as members serving on active duty. 
"(c) RESERVE RETIREES UNDER AGE 60.—^A member or former 
member of a reserve component under 60 years of age who, but 
for age, would be eligible for retired pay under chapter 1223 of 
this title shall be permitted to use MWK retail facilities on the 
same basis as members of the armed forces entitled to retired 
pay under any other provision of law. 
"(d) DEPENDENTS.—(1) Dependents of a member who is per-
mitted under subsection (a) or (b) to use MWR retail facilities 
shall be permitted to use such facilities on the same basis as 
dependents of members on active duty. 
"(2) Dependents of a member who is permitted under subsection 
(c) to use MWR retail facilities shall be permitted to use such 
facilities on the same basis as dependents of members of the armed 
forces entitled to retired pay under any other provision of law. 
"(e) MWR RETAIL FACILITY DEFINED.—In this section, the term 
'MWR retail facilities' means exchange stores and other revenue-
generating facilities operated by nonappropriated fund activities 
of the Department of Defense for the morale, welfare, and recreation 
of members of the armed forces.". 
(b) CLERICAL AMENDMENT.—The item relating to such section 
in the table of sections at the beginning of chapter 54 of such 
title is amended to read as follows: 
"1065. Morale, welfare, and recreation retail facilities: use by members of reserve 
components and dependents.". 
Subtitle E—Performance of Functions by 
Private-Sector Sources 
SEC. 351. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICA-
TION SERVICES. 
(a) REQUIREMENT FOR COMPETITIVE PROCUREMENT.—Except as 
provided in subsection (b), the Secretary of Defense shall, during 
fiscal year 1996 and consistent with the requirements of title 44, 
United States Code, competitively procure printing and duplication 
services from private-sector sources for the performance of at least 
70 percent of the total printing and duplication requirements of 
the Defense Printing Service. 
(b) EXCEPTION FOR CLASSIFIED INFORMATION.—^The requirement 
of subsection (a) shall not apply to the procurement of services 
for printing and duplicating classified documents and information. 
10 u s e 2458 
SEC. 352. DIRECT VENDOR DELIVERY SYSTEM FOR CONSUMABLE 
note. 
INVENTORY ITEMS OF DEPARTMENT OF DEFENSE. 
(a) IMPLEMENTATION OF DIRECT VENDOR DELIVERY SYSTEM.— 
Not later than September 30, 1997, the Secretary of Defense shall, 
to the maximum extent practicable, implement a system under 
which consumable inventory items referred to in subsection (b) 
are delivered to military installations throughout the United States 
directly by the vendors of those items. The purpose for implementing 
the system is to reduce the expense and necessity of maintaining 
extensive warehouses for those items within the Department of 
Defense. 
(b) COVERED ITEMS.—The items referred to in subsection (a) 
are the following: 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 267 
(1) Food and clothing. 
(2) Medical and pharmaceutical supplies. 
(3) Automotive, electrical, fuel, and construction supplies. 
(4) Other consumable inventory items the Secretary consid-
ers appropriate. 
SEC. 353. PAYROLL, FINANCE, AND ACCOUNTING FUNCTIONS OF THE 
DEPARTMENT OF DEFENSE. 
(a) PLAN FOR PRIVATE OPERATION OF CERTAIN FUNCTIONS.— 
lo use 2461 
(1) Not later than October 1, 1996, the Secretary of Defense shall note, 
submit to Congress a plan for the performance by private-sector 
sources of payroll functions for civilian employees of the Department 
of Defense other than employees paid from nonappropriated funds. 
(2)(A) The Secretary shall implement the plan referred to in 
paragraph (1) if the Secretary determines that the cost of perform-
ance by private-sector sources of the functions referred to in that 
paragraph does not exceed the cost of performance of those functions 
by employees of the Federal Government. 
(B) In computing the total cost of performance of such functions 
by employees of the Federal Government, the Secretary shall 
include the following: 
(i) Managerial and administrative costs. 
(ii) Personnel costs, including the cost of providing retire-
ment benefits for such personnel. 
(iii) Costs associated with the provision of facilities and 
other support by Federal agencies. 
(C) The Defense Contract Audit Agency shall verify the costs 
computed for the Secretary under this paragraph by others. 
(3) At the same time the Secretary submits the plan required Reports, 
by paragraph (1), the Secretary shall submit to Congress a report 
on other accounting and finance functions of the Department that 
are appropriate for performance by private-sector sources. 
(b) PILOT PROGRAM FOR PRIVATE OPERATION OF N A F I FUNG- 
IOUSC246I 
TIONS.—(1) The Secretary shall carry out a pilot program to test note. 
the performance by private-sector sources of payroll and other 
accounting 
and 
finance 
functions 
of 
nonappropriated 
fund 
instrumentalities and to evaluate the extent to which cost savings 
and efficiencies would result from the performance of such functions 
by those sources. 
(2) The payroll and other accounting and finance functions 
designated by the Secretary for performance by private-sector 
sources under the pilot program shall include at least one major 
payroll, accounting, or finance function. 
(3) To carry out the pilot program, the Secretary shall enter 
into discussions with private-sector sources for the purpose of devel-
oping a request for proposals to be issued for performance by 
those sources of functions designated by the Secretary under para-
graph (2). The discussions shall be conducted on a schedule that 
accommodates issuance of a request for proposals within 60 days 
after the date of the enactment of this Act. 
(4) A goal of the pilot program is to reduce by at least 25 
percent the total costs incurred by the Department annually for 
the performance of a function referred to in paragraph (2) through 
the performance of that function by a private-sector source. 
(5) Before conducting the pilot program, the Secretary shall 
develop a plan for the program that addresses the following: 
(A) The purposes of the program. 
110 STAT. 268 
PUBLIC LAW 104-106—FEB. 10, 1996 
(B) The methodology, duration, and anticipated costs of 
the program, including the cost of an arrangement pursuant 
to which a private-sector source would receive an agreed-upon 
payment plus an additional negotiated amount not to exceed 
50 percent of the dollar savings achieved in excess of the 
goal specified in paragraph (4). 
(C) A specific citation to any provisions of law, rule, or 
regulation that, if not waived, would prohibit the conduct of 
the program or any part of the program. 
(D) A mechanism to evaluate the program. 
(E) A provision for all payroll, accounting, and finance 
functions of nonappropriated fund instrumentalities of the 
Department of Defense to be performed by private-sector 
sources, if determined advisable on the basis of a final assess-
ment of the results of the program. 
(6) The Secretary shall act through the Under Secretary of 
Defense (Comptroller) in the performance of the Secretary's respon-
sibilities under this subsection. 
(c) LIMITATION ON OPENING OF NEW OPERATING LOCATIONS 
FOR DEFENSE FINANCE AND ACCOUNTING SERVICE.—(1) Except as 
provided in paragraph (2), the Secretary may not establish a new 
operating location for the Defense Finance and Accounting Service 
during fiscal year 1996. 
(2) The Secretary may establish a new operating location for 
the Defense Finance and Accounting Service if— 
(A) for a new operating location that the Secretary planned 
before the date of the enactment of this Act to establish on 
or after that date, the Secretary reconsiders the need for 
establishing that new operating location; and 
(B) for each new operating location, including a new operat-
ing location referred to in subparagraph (A)— 
(i) the Secretary submits to Congress, as part of the 
report required by subsection (a)(4), an analysis of the 
need for establishing the new operating location; and 
(ii) a period of 30 days elapses after the Congress 
receives the report. 
(3) In this subsection, the term "new operating location" means 
an operating location that is not in operation on the date of the 
enactment of this Act, except that such term does not include 
an operating location for which, as of such date— 
(A) the Secretary has established a date for the commence-
ment of operations; and 
(B) funds have been expended for the purpose of its 
establishment. 
10 u s e 2461 
SEC. 354. DEMONSTRATION PROGRAM TO IDENTIFY OVERPAYMENTS 
note. 
MADE TO VENDORS. 
(a) IN GENERAL.—The Secretary of Defense shall conduct a 
demonstration program to evaluate the feasibility of using private 
contractors to audit accounting and procurement records of the 
Department of Defense in order to identify overpayments made 
to vendors by the Department. The demonstration program shall 
be conducted for the Defense Logistics Agency and include the 
Defense Personnel Support Center. 
Contracts. 
(b) PROGRAM REQUIREMENTS.—(1) Under the demonstration 
program, the Secretary shall, by contract, provide for one or more 
persons to audit the accounting and procurement records of the 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 269 
Defense Logistics Agency that relate to (at least) fiscal years 1993, 
1994, and 1995. The Secretary may enter into more than one 
contract under the program. 
(2) A contract under the demonstration program shall require 
the contractor to use data processing techniques that are generally 
used in audits of private-sector records similar to the records 
audited under the contract. 
(c) AUDIT REQUIREMENTS.—In conducting an audit under the 
demonstration program, a contractor shall compare Department 
of Defense purchase agreements (and related documents) with 
invoices submitted by vendors under the purchase agreements. 
A purpose of the comparison is to identify, in the case of each 
audited purchase agreement, the following: 
(1) Any payments to the vendor for costs that are not 
allowable under the terms of the purchase agreement or by 
law. 
(2) Any amounts not deducted from the total amount paid 
to the vendor under the purchase agreement that should have 
been deducted from that amount on account of goods and serv-
ices provided to the vendor by the Department. 
(3) Duplicate payments. 
(4) Unauthorized charges. 
(5) Other discrepancies between the amount paid to the 
vendor and the amount actually due the vendor under the 
purchase agreement. 
(d) BONUS PAYMENT.—To the extent provided for in a contract 
under the demonstration program, the Secretary may pay the con-
tractor a bonus in addition to any other amount paid for perform-
ance of the contract. The amount of such bonus may not exceed 
the amount that is equal to 25 percent of all amounts recovered 
by the United States on the basis of information obtained as a 
result of the audit performed under the contract. Any such bonus 
shall be paid out of amounts made available pursuant to subsection 
(e). 
(e) AVAILABILITY OF FUNDS.—Of the amount authorized to be 
appropriated pursuant to section 301(5), not more than $5,000,000 
shall be available for the demonstration program. 
SEC. 355. PILOT PROGRAM ON PRIVATE OPERATION OF DEFENSE 
20 USC 921 note. 
DEPENDENTS' SCHOOLS. 
(a) PILOT PROGRAM.—^The Secretary of Defense may conduct 
a pilot program to evaluate the feasibility of using private contrac-
tors to operate schools of the defense dependents' education system 
established under section 1402(a) of the Defense Dependents' Edu-
cation Act of 1978 (20 U.S.C. 921(a)). 
(b) SELECTION OF SCHOOL FOR PROGRAM.—If the Secretary con-
ducts the pilot program, the Secretary shall select one school of 
the defense dependents' education system for participation in the 
program and provide for the operation of the school by a private 
contractor for not less than one complete school year. 
(c) REPORT.—^Not later than 30 days after the end of the first 
school year in which the pilot program is conducted, the Secretary 
shall submit to Congress a report on the results of the program. 
The report shall include the recommendation of the Secretary with 
respect to the extent to which other schools of the defense depend-
ents' education system should be operated by private contractors. 
110 STAT. 270 
PUBLIC LAW 104-106—FEB. 10, 1996 
10 u s e 2461 
SEC. 356. PROGRAM FOR IMPROVED TRAVEL PROCESS FOR THE 
note. 
DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—(1) The Secretary of Defense shall conduct 
a program to evaluate options to improve the Department of Defense 
travel process. To carry out the program, the Secretary shall com-
pare the results of the tests conducted under subsection (b) to 
determine which travel process tested under such subsection is 
the better option to effectively manage travel of Department per-
sonnel. 
(2) The program shall be conducted at not less than three 
and not more than six military installations, except that an installa-
tion may be the subject of only one test conducted under the 
program. 
(3) The Secretary shall act through the Under Secretary of 
Defense (Comptroller) in the performance of the Secretary's respon-
sibilities under this section. 
(b) CONDUCT OF TESTS.—(1) The Secretary shall conduct a 
test at an installation referred to in subsection (a)(2) under which 
the Secretary— 
(A) implements the changes proposed to be made with 
respect to the Department of Defense travel process by the 
task force on travel management that was established by the 
Secretary in July 1994; 
(B) manages and uniformly applies that travel process 
(including the implemented changes) throughout the Depart-
ment; and 
(C) provides opportunities for private-sector sources to pro-
vide travel reservation services and credit card services to 
facilitate that travel process. 
(2) The Secretary shall conduct a test at an installation referred 
to in subsection (a)(2) under which the Secretary— 
(A) enters into one or more contracts with a private-sector 
source pursuant to which the private-sector source manages 
the Department of Defense travel process (except for functions 
referred to in subparagraph (B)), provides for responsive, 
reasonably priced services as part of the travel process, and 
uniformly applies the travel process throughout the Depart-
ment; and 
(B) provides for the performance by employees of the 
Department of only those travel functions, such as travel 
authorization, that the Secretary considers to be necessary 
to be performed by such employees. 
(3) Each test required by this subsection shall begin not later 
than 60 days after the date of the enactment of this Act and 
end two years after the date on which it began. Each such test 
shall also be conducted in accordance with the guidelines for travel 
management issued for the Department by the Under Secretary 
of Defense (Comptroller). 
(c) EVALUATION CRITERIA.—The Secretary shall establish cri-
teria to evaluate the travel processes tested under subsection (b). 
The criteria shall, at a minimum, include the extent to which 
a travel process provides for the following: 
(1) The coordination, at the time of a travel reservation, 
of travel policy and cost estimates with the mission which 
necessitates the travel. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 271 
(2) The use of fully integrated travel solutions envisioned 
by the travel reengineering report of the Department of Defense 
dated January 1995. 
(3) The coordination of credit card data and travel reserva-
tion data with cost estimate data. 
(4) The elimination of the need for multiple travel approvals 
through the coordination of such data with proposed travel 
plans. 
(5) A responsive and flexible management information sys-
tem that enables the Under Secretary of Defense (Comptroller) 
to monitor travel expenses throughout the year, accurately 
\ 
plan travel budgets for future years, and assess, in the case 
of travel of an employee on temporary duty, the relationship 
between the cost of the travel and the value of the travel 
to the accomplishment of the mission which necessitates the 
travel. 
(d) PLAN FOR PROGRAM.—Before conducting the program, the 
Secretary shall develop a plan for the program that addresses 
the following: 
(1) The purposes of the program, including the achievement 
of an objective of reducing by at least 50 percent the total 
cost incurred by the Department annually to manage the 
Department of Defense travel process. 
(2) The methodology and anticipated cost of the program, 
including the cost of an arrangement pursuant to which a 
private-sector source would receive an agreed-upon payment 
plus an additional negotiated amount that does not exceed 
50 percent of the total amount saved in excess of the objective 
specified in paragraph (1). 
(3) A specific citation to any provision or law, rule, or 
regulation that, if not waived, would prohibit the conduct of 
the program or any part of the program. 
(4) The evaluation criteria established pursuant to sub-
section (c). 
(5) A provision for implementing throughout the Depart-
ment the travel process determined to be the better option 
to effectively manage travel of Department personnel on the 
basis of a final assessment of the results of the program. 
(e) REPORT.—^After the first full year of the conduct of the 
tests required by subsection (b), the Secretary shall submit to 
the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives a report 
on the implementation of the program. The report shall include 
an analysis of the evaluation criteria established pursuant to sub-
section (c). 
SEC. 357. INCREASED RELIANCE ON PRIVATE-SECTOR SOURCES FOR 
10 USC 2461 
COMMERCIAL PRODUCTS AND SERVICES. 
note. 
(a) IN GENERAL.—^The Secretary of Defense shall endeavor to 
carry out through a private-sector source any activity to provide 
a commercial product or service for the Department of Defense 
if— 
(1) the product or service can be provided adequately 
through such a source; and 
(2) an adequate competitive environment exists to provide 
for economical performance of the activity by such a source. 
110 STAT. 272 
PUBLIC LAW 104-106—FEB. 10, 1996 
(b) APPLICABILITY.—(1) Subsection (a) shall not apply to any 
commercial product or service with respect to which the Secretary 
determines that production, manufacture, or provision of that prod-
uct or service by the Government is necessary for reasons of national 
security. 
(2) A determination under paragraph (1) shall be made in 
accordance with regulations prescribed under subsection (c). 
(c) REGULATIONS.—The Secretary shall prescribe regulations 
to carry out this section. Such regulations shall be prescribed in 
consultation with the Director of the Office of Management and 
Budget. 
(d) REPORT.—(1) The Secretary shall identify activities of the 
Department (other than activities specified by the Secretary pursu-
ant to subsection (b)) that are carried out by employees of the 
Department to provide commercial-type products or services for 
the Department. 
(2) Not later than April 15, 1996, the Secretary shall transmit 
to the congressional defense committees a report on opportunities 
for increased use of private-sector sources to provide commercial 
products and services for the Department. 
(3) The report required by paragraph (2) shall include the 
following: 
(A) A list of activities identified under paragraph (1) 
indicating, for each activity, whether the Secretary proposes 
to convert the performance of that activity to performance 
by private-sector sources and, if not, the reasons why. 
(B) An assessment of the advantages and disadvantages 
of using private-sector sources, rather than employees of the 
Department, to provide commercial products and services for 
the Department that are not essential to the warflghting mis-
sion of the Armed Forces. 
(C) A specification of all legislative and regulatory impedi-
ments to converting the performance of activities identified 
under paragraph (1) to performance by private-sector sources. 
(D) The views of the Secretary on the desirability of termi-
nating the applicability of 0MB Circular A-76 to the Depart-
ment. 
(4) The Secretary shall carry out paragraph (1) in consultation 
with the Director of the Office of Management and Budget and 
the Comptroller General of the United States. In carrying out 
that paragraph, the Secretary shall consult with, and seek the 
views of, representatives of the private sector, including organiza-
tions representing small businesses. 
Subtitle F—Miscellaneous Reviews, 
Studies, and Reports 
SEC. 361. QUARTERLY READINESS REPORTS. 
(a) IN GENERAL.—(1) Chapter 22 of title 10, United States 
Code, is amended by adding at the end the following new section: 
"§ 452. Quarterly readiness reports 
"(a) REQUIREMENT.—Not later than 30 days after the end of 
each calendar-year quarter, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and the Commit-
tee on National Security of the House of Representatives a report 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 273 
on military readiness. The report for any quarter shall be based 
on assessments that are provided during that quarter— 
"(1) to any council, committee, or other body of the Depart-
ment of Defense (A) that has responsibility for readiness over-
sight, and (B) the membership of which includes at least one 
civilian officer in the Office of the Secretary of Defense at 
the level of Assistant Secretary of Defense or higher; 
"(2) by senior civilian and military officers of the military 
departments and the commanders of the unified and specified 
commands; and 
"(3) as part of any regularly established process of periodic 
readiness reviews for the Department of Defense as a whole. 
"(b) MATTERS TO B E INCLUDED.—Each such report shall— 
"(1) specifically describe identified readiness problems or 
deficiencies and planned remedial actions; and 
"(2) include the key indicators and other relevant data 
related to the identified problem or deficiency. 
"(c) CLASSIFICATION OF REPORTS.—Reports under this section 
shall be submitted in unclassified form and may, as the Secretary 
determines necessary, also be submitted in classified form.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"452. Quarterly readiness reports.". 
(b) EFFECTIVE DATE.—Section 452 of title 10, United States Code, 
10 USC 452 note, 
as added by subsection (a), shall take effect with the calendar-
year quarter during which this Act is enacted. 
SEC. 362. RESTATEMENT 
OF REQUIREMENT 
FOR SEMIANNUAL 
REPORTS TO CONGRESS ON TRANSFERS FROM IHGH-
PRIORTTY READINESS APPROPRIATIONS. 
Section 361 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2732) is amended to 
read as follows: 
"SEC. 361. SEMIANNUAL REPORTS TO CONGRESS ON TRANSFERS 
FROM 
fflGH-PRIORITY 
READINESS APPROPRIATIONS. 
"(a) ANNUAL REPORTS.—During 1996 and 
1997, the Secretary 
of Defense shall submit to the congressional defense committees 
a report on transfers during the preceding fiscal year from funds 
available for each budget activity specified in subsection (d) (herein-
after in this section referred to as 'covered budget activities'). The 
report each year shall be submitted not later than the date in 
that year on which the President submits the budget for the next 
fiscal year to Congress pursuant to section 1105 of title 31, United 
States Code. 
"(b) MIDYEAR REPORTS.—On May 1 of each year specified in 
subsection (a), the Secretary of Defense shall submit to the congres-
sional defense committees a report providing the same information, 
with respect to the first six months of the fiscal year in which 
the report is submitted, that is provided in reports under subsection 
(a) with respect to the preceding fiscal year. 
"(c) MATTERS TO B E INCLUDED.—In each report under this 
section, the Secretary shall include for each covered budget activity 
the following: 
"(1) A statement, for the period covered by the report, 
of— 
110 STAT. 274 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(A) the total amount of transfers into funds available 
for that activity; 
"(B) the total amount of transfers from funds available 
for that activity; and 
"(C) the net amount of transfers into, or out of, funds 
available for that activity. 
"(2) A detailed explanation of the transfers into, and out 
of, funds available for that activity during the period covered 
by the report. 
"(d) COVERED BUDGET ACTIVITIES.—The budget activities to 
which this section applies are the following: 
"(1) The budget activity groups (known as 'subactivities') 
within the Operating Forces budget activity of the annual Oper-
ation and Maintenance, Army, appropriation that are des-
ignated as follows: 
"(A) Combat Units. 
"(B) Tactical Support. 
"(C) Force-Related Training/Special Activities. 
"(D) Depot Maintenance. 
"(E) JCS Exercises. 
"(2) The budget activity groups (known as 'subactivities') 
within the Operating Forces budget activity of the annual Oper-
ation and Maintenance, Navy, appropriation that are des-
ignated as follows: 
"(A) Mission and Other Flight Operations. 
"(B) Mission and Other Ship Operations. 
"(C) Fleet Air Training. 
"(D) Ship Operational Support and Training. 
"(E) Aircraft Depot Maintenance. 
"(F) Ship Depot Maintenance. 
"(3) The budget activity groups (known as 'subactivities'), 
or other activity, within the Operating Forces budget activity 
of the annual Operation and Maintenance, Air Force, appropria-
tion that are designated or otherwise identified as follows: 
"(A) Primary Combat Forces. 
"(B) Primary Combat Weapons. 
"(C) Global and Early Warning. 
"(D) A r Operations Training. 
"(E) Depot Maintenance. 
"(F) JCS Exercises.". 
SEC. 363. 
REPORT REGARDING REDUCTION OF COSTS 
ASSOCIATED 
WITH 
CONTRACT 
MANAGEMENT 
OVERSIGHT. 
(a) REPORT REQUIRED.—Not later than April 1, 1996, the 
Comptroller General of the United States shall submit to Congress 
a report identifying methods to reduce the cost to the Department 
of Defense of management oversight of contracts in connection 
with major defense acquisition programs. 
(b) 
MAJOR DEFENSE ACQUISITION PROGRAMS DEFINED.—For 
purposes of this section, the term "major defense acquisition pro-
gram" has the meaning given that term in section 2430(a) of title 
10, United States Code. 
SEC. 364. REVIEWS OF MANAGEMENT OF INVENTORY CONTROL 
POINTS AND MATERIEL MANAGEMENT STANDARD SYSTEM. 
(a) 
REVIEW 
OF 
CONSOLIDATION 
OF 
INVENTORY CONTROL 
POINTS.—(1) The Secretary of Defense shall conduct a review of 
the management by the Defense Logistics Agency of all inventory 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 275 
control points of the Department of Defense. In conducting the 
review, the Secretary shall examine the management and acquisi-
tion practices of the Defense Logistics Agency for inventory of 
repairable spare parts. 
(2) Not later than March 31, 1996, the Secretary shall submit 
to the Comptroller General of the United States and the congres-
sional defense committees a report on the results the review con-
ducted under paragraph (1). 
(b) REVIEW OF MATERIEL MANAGEMENT STANDARD SYSTEM.— 
(1) The Comptroller General of the United States shall conduct 
a review of the automated data processing system of the Department 
of Defense known as the Materiel Management Standard System. 
(2) Not later than May 1, 1996, the Comptroller General shall 
submit to the congressional defense committees a report on the 
results of the review conducted under paragraph (1). 
SEC. 365. REPORT ON PRIVATE PERFORMANCE OF CERTAIN FUNC-
TIONS PERFORMED BY MILITARY AIRCRAFT. 
(a) REPORT REQUIRED.—Not later than May 1, 1996, the Sec-
retary of Defense shall submit to Congress a report on the feasibility 
of providing for the performance by private-sector sources of func-
tions necessary to be performed to fulfill the requirements of the 
Department of Defense for air transportation of personnel and 
cargo. 
(b) CONTENT OF REPORT.—^The report shall include the follow-
ing: 
(1) A cost-benefit analysis with respect to the performance 
by private-sector sources of functions described in subsection 
(a), including an explanation of the assumptions used in the 
cost-benefit analysis. 
(2) An assessment of the issues raised by providing for 
such performance by means of a contract entered into with 
a private-sector source. 
(3) An assessment of the issues raised by providing for 
such performance by means of converting functions described 
in subsection (a) to private ownership and operation, in whole 
or in part. 
(4) A discussion of the requirements for the performance 
of such functions in order to fulfill the requirements referred 
to in subsection (a) during wartime. 
(5) The effect on military personnel and facilities of using 
private-sector sources to fulfill the requirements referred to 
in such subsection. 
(6) The performance by private-sector sources of any other 
military aircraft functions (such as non-combat inflight fueling 
of aircraft) the Secretary considers appropriate. 
SEC. 366. STRATEGY AND REPORT ON AUTOMATED INFORMATION 10 USC 113 note. 
SYSTEMS OF DEPARTMENT OF DEFENSE. 
(a) DEVELOPMENT OF STRATEGY.—The Secretary of Defense 
shall develop a strategy for the development or modernization of 
automated information systems for the Department of Defense. 
(b) MATTERS TO CONSIDER.—In developing the strategy required 
under subsection (a), the Secretary shall consider the following: 
(1) The use of performance measures and management 
controls. 
(2) Findings of the Functional Management Review con-
ducted by the Secretary. 
110 STAT. 276 
PUBLIC LAW 104-106—FEB. 10, 1996 
(3) Program management actions planned by the Secretary. 
(4) Actions and milestones necessary for completion of func-
tional and economic analyses for— 
(A) the Automated System for Transportation data; 
(B) continuous acquisition and life cycle support; 
(C) electronic data interchange; 
(D) flexible computer integrated manufacturing; 
(E) the Navy Tactical Command Support System; and 
(F) the Defense Information System Network. 
(5) Progress made by the Secretary in resolving problems 
with respect to the Defense Information System Network and 
the Joint Computer-Aided Acquisition and Logistics Support 
System. 
(6) Tasks identified in the review conducted by the Sec-
retary of the Standard Installation/Division Personnel System-
3. 
(7) Such other matters as the Secretary considers appro-
priate. 
(c) REPORT ON STRATEGY.—(1) Not later than April 15, 1996, 
the Secretary shall submit to Congress a report on the development 
of the strategy required under subsection (a). 
(2) In the case of the Air Force Wargaming Center, the Air 
Force Command Exercise System, the Cheyenne Mountain Upgrade, 
the Transportation Coordinator Automated Command and Control 
Information Systems, and the Wing Command and Control Systems, 
the report required by paragraph (1) shall provide functional eco-
nomic analyses and address waivers exercised for compelling mili-
tary importance under section 381(d) of the National Defense 
Authorization Act for Fiscal Year 1995 (PubHc Law 103-337; 108 
Stat. 2739). 
(3) The report required by paragraph (1) shall also include 
the following: 
Certification. 
(A) A certification by the Secretary of the termination 
of the Personnel Electronic Record Management System or 
a justification for the continued need for such system. 
(B) Findings of the Functional Management Review con-
ducted by the Secretary and program management actions 
planned by the Secretary for— 
(i) the Base Level System Modernization and the 
Sustaining Base Information System; and 
(ii) the Standard Installation/Division Personnel Sys-
tem-3. 
(C) An assessment of the implementation of migration sys-
tems and applications, including— 
(i) identification of the systems and applications by 
functional or business area, specifying target dates for oper-
ation of the systems and applications; 
(ii) identification of the legacy systems and applications 
that will be terminated; 
(iii) the cost of and schedules for implementing the 
migration systems and applications; and 
(iv) termination schedules. 
(D) A certification by the Secretary that each information 
system that is subject to review by the Major Automated 
Information System Review Committee of the Department is 
cost-effective and supports the corporate information manage-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 277 
ment goals of the Department, including the results of the 
review conducted for each such system by the Committee. 
Subtitle G—Other Matters 
SEC. 371. CODIFICATION OF DEFENSE BUSINESS OPERATIONS FUND. 
(a) MANAGEMENT OF WORKING-CAPITAL FUNDS.—(1) Chapter 
131 of title 10, United States Code, is amended by inserting after 
section 2215 the following new section: 
"§ 2216. Defense Business Operations Fund 
"(a) MANAGEMENT OF WORKING-CAPITAL FUNDS AND CERTAIN 
ACTIVITIES.—The Secretary of Defense may manage the perform-
ance of the working-capital funds and industrial, commercial, and 
support type activities described in subsection (b) through the fund 
known as the Defense Business Operations Fund, which is estab-
lished on the books of the Treasury. Except for the funds and 
activities specified in subsection (b), no other functions, activities, 
funds, or accounts of the Department of Defense may be managed 
or converted to management through the Fund. 
"(b) FUNDS AND ACTIVITIES INCLUDED.—The funds and activities 
referred to in subsection (a) are the following: 
"(1) Working-capital funds established under section 2208 
of this title and in existence on December 5, 1991. 
"(2) Those activities that, on December 5, 1991, were funded 
through the use of a working-capital fund established under 
that section. 
"(3) The Defense Finance and Accounting Service. 
"(4) The Defense Commissary Agency. 
"(5) The Defense Reutilization and Marketing Service. 
"(6) The Joint Logistics Systems Center. 
"(c) 
SEPARATE ACCOUNTING, REPORTING, AND AUDITING OF 
FUNDS AND ACTIVITIES.—(1) The Secretary of Defense shall provide 
in accordance with this subsection for separate accounting, report-
ing, and auditing of funds and activities managed through the 
Fund. 
"(2) The Secretary shall maintain the separate identity of each 
fund and activity managed through the Fund that (before the 
establishment of the Fund) was managed as a separate Fund or 
activity. 
"(3) The Secretary shall maintain separate records for each Records, 
function for which payment is made through the Fund and which 
(before the establishment of the Fund) was paid directly through 
appropriations, including the separate identity of the appropriation 
account used to pay for the performance of the function. 
"(d) CHARGES FOR GOODS AND SERVICES PROVIDED THROUGH 
THE FUND.—(1) Charges for goods and services provided through 
the Fund shall include the following: 
"(A) Amounts necessary to recover the full costs of the 
goods and services, whenever practicable, and the costs of the 
development, implementation, operation, and maintenance of 
systems supporting the wholesale supply and maintenance 
activities of the Department of Defense. 
"(B) Amounts for depreciation of capital assets, set in 
accordance with generally accepted accounting principles. 
110 STAT. 278 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(C) Amounts necessary to recover the full cost of the 
operation of the Defense Finance Accounting Service. 
"(2) Charges for goods and services provided through the Fund 
may not include the following: 
"(A) Amounts necessary to recover the costs of a military 
construction project (as defined in section 2801(b) of this title), 
other than a minor construction project financed by the Fund 
pursuant to section 2805(c)( 1) of this title. 
"(B) Amounts necessary to cover costs incurred in connec-
tion with the closure or realignment of a military installation. 
"(C) Amounts necessary to recover the costs of functions 
designated by the Secretary of Defense as mission critical, 
such as ammunition handling safety, and amounts for ancillary 
tasks not directly related to the mission of the function or 
activity managed through the Fund. 
"(3)(A) The Secretary of Defense may submit to a customer 
a bill for the provision of goods and services through the Fund 
in advance of the provision of those goods and services. 
Reports. 
"(B) The Secretary shall submit to Congress a report on advance 
billings made pursuant to subparagraph (A)— 
"(i) when the aggregate amount of all such billings after 
the date of the enactment of the National Defense Authorization 
Act for Fiscal Year 1996 reaches $100,000,000; and 
"(ii) whenever the aggregate amount of all such billings 
after the date of a preceding report under this subparagraph 
reaches $100,000,000. 
"(C) Each report under subparagraph (B) shall include, for 
each such advance billing, the following: 
"(i) An explanation of the reason for the advance billing. 
"(ii) An analysis of the impact of the advance billing on 
readiness. 
"(iii) An analysis of the impact of the advance billing on 
the customer so billed. 
"(e) CAPITAL ASSET SUBACCOUNT.—(1) Amounts charged for 
depreciation of capital assets pursuant to subsection (d)(1)(B) shall 
be credited to a separate capital asset subaccount established within 
the Fund. 
"(2) The Secretary of Defense may award contracts for capital 
assets of the Fund in advance of the availability of funds in the 
subaccount. 
"(f) PROCEDURES FOR ACCUMULATION OF FUNDS.—The Sec-
retary of Defense shall establish billing procedures to ensure that 
the balance in the Fund does not exceed the amount necessary 
to provide for the working capital requirements of the Fund, as 
determined by the Secretary. 
"(g) 
PURCHASE FROM OTHER SOURCES.—The Secretary of 
Defense or the Secretary of a military department may purchase 
goods and services that are available for purchase from the Fund 
from a source other than the Fund if the Secretary determines 
that such source offers a more competitive rate for the goods and 
services than the Fund offers. 
"(h) ANNUAL REPORTS AND BUDGET.—^The Secretary of Defense 
shall annually submit to Congress, at the same time that the 
President submits the budget under section 1105 of title 31, the 
following: 
"(1) A detailed report that contains a statement of all 
receipts and disbursements of the Fund (including such a state-
PUBLIC LAW 104-10&—FEB. 10, 1996 
110 STAT. 279 
ment for each subaccount of the Fund) for the fiscal year 
ending in the year preceding the year in which the budget 
is submitted. 
"(2) A detailed proposed budget for the operation of the 
Fund for the fiscal year for which the budget is submitted. 
"(3) A comparison of the amounts actually expended for 
the operation of the Fund for the fiscal year referred to in 
paragraph (1) with the amount proposed for the operation of 
the Fund for that fiscal year in the President's budget. 
"(4) A report on the capital asset subaccount of the Fund 
that contains the following information: 
"(A) The opening balance of the subaccount as of the 
beginning of the fiscal year in which the report is submit-
ted. 
"(B) The estimated amounts to be credited to the sub-
account in the fiscal year in which the report is submitted. 
"(C) The estimated amounts of outlays to be paid out 
of the subaccount in the fiscal year in which the report 
is submitted. 
"(D) The estimated balance of the subaccount at the 
end of the fiscal year in which the report is submitted. 
"(E) A statement of how much of the estimated balance 
at the end of the fiscal year in which the report is submitted 
will be needed to pay outlays in the immediately following 
fiscal year that are in excess of the amount to be credited 
to the subaccount in the immediately following fiscal year. 
"(i) DEFINITIONS.—In this section: 
"(1) The term 'capital assets' means the following capital 
assets that have a development or acquisition cost of not less 
than $50,000: 
"(A) Minor construction projects financed by the Fund 
pursuant to section 2805(c)(1) of this title. 
"(B) Automatic data processing equipment, software. 
"(C) Equipment other than equipment described in 
subparagraph (B). 
"(D) Other capital improvements. 
"(2) The term 'Fund' means the Defense Business Oper-
ations Fund.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2215 
the following new item: 
"2216. Defense Business Operations Fund.". 
(b) CONFORMING REPEALS.—The following provisions of law are 
hereby repealed: 
(1) Subsections (b), (c), (d), and (e) of section 311 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 10 U.S.C. 2208 note). 
(2) Subsections (a) and (b) of section 333 of the National 
Defense Authorization Act for Fiscal Year 1994 (Public Law 
103-160; 10 U.S.C. 2208 note). 
(3) Section 342 of the National Defense Authorization Act 
for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 2208 
note). 
(4) Section 316 of the National Defense Authorization Act 
for Fiscal Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 
2208 note). 
110 STAT. 280 
PUBLIC LAW 104-106—FEB. 10, 1996 
(5) Section 8121 of the Department of Defense Appropria-
tions Act, 1992 (Public Law 102-172; 10 U.S.C. 2208 note). 
SEC. 372. CLARIFICATION OF SERVICES AND PROPERTY THAT MAY 
BE EXCHANGED TO BENEFIT THE HISTORICAL COLLEC-
TION OF THE ARMED FORCES. 
Section 2572(b)(1) of title 10, United States Code, is amended 
by striking out "not needed by the armed forces" and all that 
follows through the end of the paragraph and inserting in lieu 
thereof the following: "not needed by the armed forces for any 
of the following items or services if such items or services directly 
benefit the historical collection of the armed forces: 
"(A) Similar items held by any individual, organization, 
institution, agency, or nation. 
"(B) Conservation supplies, equipment, facilities, or sys-
tems. 
"(C) Search, salvage, or transportation services. 
"(D) Restoration, conservation, or preservation services. 
"(E) Educational programs.". 
SEC. 373. FINANCIAL MANAGEMENT TRAINING. 
(a) LIMITATION.—The Secretary of Defense may enter into a 
capital lease for the establishment of a Department of Defense 
financial management training center no earlier than the date 
that is 30 days after the date on which the Secretary of Defense 
submits to the Committee on Armed Services of the Senate and 
the Committee on National Security of the House of Representa-
tives, in accordance with subsection (b), a certification of the need 
for such a center and a report on financial management training 
for Department of Defense personnel. 
(b) CERTIFICATION AND REPORT.—(1) The certification 
and 
report referred to in subsection (a) are the following: 
(A) Certification by the Secretary of the need for such 
a center. 
(B) A report, submitted with the certification, on financial 
management training for Department of Defense personnel. 
(2) Any report under paragraph (1) shall contain the following: 
(A) The Secretary's analysis of the requirements for provid-
ing financial management training for employees of the Depart-
ment of Defense. 
(B) The alternatives considered by the Secretary for meet-
ing those requirements. 
(C) A detailed plan for meeting those requirements. 
(D) A financial analysis of the estimated short-term and 
long-term costs of carrying out the plan. 
(3) If, upon completing the analysis referred to in paragraph 
(2)(A) and after considering alternatives as described in paragraph 
(2)(B), the Secretary determines to meet the requirements for 
providing financial management training for employees of the 
Department of Defense through establishment of a financial 
management training center, the Secretary— 
(A) shall make the determination of the location of the 
center using a merit-based selection process; and 
(B) shall include in the report under paragraph (1) a 
description of that merit-based selection process. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 281 
SEC. 374. PERMANENT AUTHORITY FOR USE OF PROCEEDS FROM THE 
SALE OF CERTAIN LOST, ABANDONED, OR UNCLAIMED 
PROPERTY. 
(a) 
PERMANENT 
AUTHORITY.—Section 2575 of title 10 is 
amended— 
(1) by striking out subsection (b) and inserting in lieu 
thereof the following: 
"(b)(1) In the case of lost, abandoned, or unclaimed personal 
property found on a military installation, the proceeds from the 
sale of the property under this section shall be credited to the 
operation and maintenance account of that installation and used— 
"(A) to reimburse the installation for any costs incurred 
by the installation to collect, transport, store, protect, or sell 
the property; and 
"(B) to the extent that the amount of the proceeds exceeds 
the amount necessary for reimbursing all such costs, to support 
morale, welfare, and recreation activities under the jurisdiction 
of the armed forces that are conducted for the comfort, pleasure, 
contentment, or physical or mental improvement of members 
of the armed forces at such installation. 
"(2) The net proceeds from the sale of other property under 
this section shall be covered into the Treasury as miscellaneous 
receipts."; and 
(2) by adding at the end the following: 
"(d)(1) The owner (or heirs, next of kin, or legal representative 
of the owner) of personal property the proceeds of which are credited 
to a military installation under subsection (b)(1) may file a claim 
with the Secretary of Defense for the amount equal to the proceeds 
(less costs referred to in subparagraph (A) of such subsection). 
Amounts to pay the claim shall be drawn from the morale, welfare, 
and recreation account for the installation that received the pro-
ceeds. 
"(2) The owner (or heirs, next of kin, or legal representative 
of the owner) may file a claim with the Comptroller General of 
the United States for proceeds covered into the Treasury under 
subsection (b)(2). 
"(3) Unless a claim is filed under this subsection within 5 
years after the date of the disposal of the property to which the 
claim relates, the claim may not be considered by a court, the 
Secretary of Defense (in the case of a claim filed under paragraph 
(1)), or the Comptroller General of the United States (in the case 
of a claim filed under paragraph (2)).". 
(b) REPEAL OF AUTHORITY FOR DEMONSTRATION PROGRAM.— 
Section 343 of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1343) is 
repealed. 
SEC. 
375. 
SALE OF MILITARY CLOTHING AND SUBSISTENCE AND 
OTHER 
SUPPLIES 
OF 
THE 
NAVY 
AND 
MARINE 
CORPS. 
(a) IN GENERAL.—(1) Chapter 651 of title 10, United States 
Code, is amended by adding at the end the following new section: 
"§ 7606. Subsistence and other supplies: members of armed 
forces; veterans; executive or military depart-
ments and employees; prices 
"(a)(1) The Secretary of the Navy shall procure and sell, for 
cash or credit— 
110 STAT. 282 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(A) articles designated by the Secretary to members of 
the Navy and Marine Corps; and 
"(B) items of individual clothing and equipment to members 
of the Navy and Marine Corps, under such restrictions as 
the Secretary may prescribe. 
"(2) An account of sales on credit shall be kept and the amount 
due reported to the Secretary. Except for articles and items acquired 
through the use of working capital funds under section 2208 of 
this title, sales of articles shall be at cost, and sales of individual 
clothing and equipment shall be at average current prices, including 
overhead, as determined by the Secretary. 
"(b) The Secretary shall sell subsistence supplies to members 
of other armed forces at the prices at which like property is sold 
to members of the Navy and Marine Corps. 
"(c) The Secretary may sell serviceable supplies, other than 
subsistence supplies, to members of other armed forces for the 
buyers' use in the service. The prices at which the supplies are 
sold shall be the same prices at which like property is sold to 
members of the Navy and Marine Corps. 
"(d) A person who has been discharged honorably or under 
honorable conditions from the Army, Navy, Air Force or Marine 
Corps and who is receiving care and medical treatment from the 
Public Health Service or the Department of Veterans Affairs may 
buy subsistence supplies and other supplies, except articles of uni-
form, at the prices at which like property is sold to members 
of the Navy and Marine Corps. 
"(e) Under such conditions as the Secretary may prescribe, 
exterior articles of uniform may be sold to a person who has been 
discharged honorably or under honorable conditions from the Navy 
or Marine Corps, at the prices at which like articles are sold 
to members of the Navy or Marine Corps. This subsection does 
not modify sections 772 or 773 of this title. 
Regulations. 
"(f) Under regulations prescribed by the Secretary, pa3rment 
for subsistence supplies shall be made in cash or by commercial 
credit. 
"(g)(1) The Secretary may provide for the procurement and 
sale of stores designated by the Secretary to such civilian officers 
and employees of the United States, and such other persons, as 
the Secretary considers proper— 
"(A) at military installations outside the United States; 
and 
"(B) subject to paragraph (2), at military installations inside 
the United States where the Secretary determines that it is 
impracticable for those civilian officers, employees, and persons 
to obtain such stores from commercial enterprises without 
impairing the efficient operation of military activities. 
"(2) Sales to civilian officers and employees inside the United 
States may be made under paragraph (1) only to civilian officers 
and employees residing within military installations. 
"(h) Appropriations for subsistence of the Navy or Marine Corps 
may be applied to the purchase of subsistence supplies for sale 
to members of the Navy and Marine Corps on active duty for 
the use of such members and their families.". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 283 
(2) The table of sections at the beginning of chapter 651 of 
such title is amended by adding at the end the following: 
"7606. Subsistence and other supplies: members of armed forces; veterans; executive 
or military departments and employees; prices.". 
(b) CONFORMING AMENDMENTS FOR OTHER ARMED FORCES.— 
(1) Section 4621 of such title is amended— 
(A) by striking out "The branch, office, or officer designated 
by the Secretary of the Army" in subsection (a) and inserting 
in lieu thereof "The Secretary of the Army"; 
(B) by striking out "The branch, office, or officer designated 
by the Secretary" both places it appears in subsections (b) 
and (c) and inserting in lieu thereof "The Secretary"; and 
(C) by inserting before the period at the end of subsection 
(f) the following: "or by commercial credit". 
(2) Section 9621 of such title is amended— 
(A) by striking out "The Air Force shall" in subsection 
(b) and inserting in lieu thereof "The Secretary shall"; and 
(B) by inserting before the period at the end of subsection 
(f) the following: "or by commercial credit". 
SEC. 376. PERSONNEL SERVICES AND LOGISTICAL SUPPORT FOR CER-
TAIN ACTIVITIES HELD ON MILITARY INSTALLATIONS. 
Section 2544 of title 10, United States Code, is amended— 
(1) by redesignating subsection (g) as subsection (h); and 
(2) by inserting after subsection (f) the following new sub-
section: 
"(g) In the case of a Boy Scout Jamboree held on a military 
installation, the Secretary of Defense may provide personnel serv-
ices and logistical support at the military installation in addition 
to the support authorized under subsections (a) and (d).". 
SEC. 
377. 
RETENTION 
OF 
MONETARY 
AWARDS. 
(a) MONETARY AWARDS.—Chapter 155 of title 10, United States 
Code, is amended by adding at the end the following new section: 
"§ 2610. Competitions for excellence: acceptance of monetary 
awards 
"(a) ACCEPTANCE AUTHORIZED.—The Secretary of Defense may 
accept a monetary award given to the Department of Defense by 
a nongovernmental entity as a result of the participation of the 
Department in a competition carried out to recognize excellence 
or innovation in providing services or administering programs. 
"(b) DISPOSITION OF AWARDS.—^A monetary award accepted 
under 
subsection 
(a) shall be credited to one or more 
nonappropriated fund accounts supporting morale, welfare, and 
recreation activities for the command, installation, or other activity 
that is recognized for the award. Amounts so credited may be 
expended only for such activities. 
"(c) INCIDENTAL EXPENSES.—Subject to such limitations as may 
be provided in appropriation Acts, appropriations available to the 
Department of Defense may be used to pay incidental expenses 
incurred by the Department to participate in a competition 
described in subsection (a) or to accept a monetary award under 
this section. 
"(d) REGULATIONS AND REPORTING.—(1) The Secretary shall 
prescribe regulations to determine the disposition of monetary 
awards accepted under this section and the payment of incidental 
expenses under subsection (c). 
110 STAT. 284 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(2) At the end of each year, the Secretary shall submit to 
Congress a report for that year describing the disposition of mone-
tary awards accepted under this section and the payment of inciden-
tal expenses under subsection (c). 
"(e) TERMINATION.—^The authority of the Secretary under this 
section shall expire two years after the date of the enactment 
of the National Defense Authorization Act for Fiscal Year 1996.". 
(b) CLERICAL AMENDMENT.—^The table of sections at the begin-
ning of such chapter is amended by adding at the end the following 
new item: 
"2610. Competitions for excellence: acceptance of monetary awards.". 
SEC. 378. PROVISION OF EQUIPMENT AND FACILITIES TO ASSIST IN 
EMERGENCY RESPONSE ACTIONS. 
Section 372 of title 10, United States Code, is amended— 
(1) by inserting "(a) IN GENERAL.—" before "The Secretary 
of Defense"; and 
(2) by adding at the end the following new subsection: 
"(b) 
EMERGENCIES INVOLVING CHEMICAL AND BIOLOGICAL 
AGENTS.—(1) In addition to equipment and facilities described in 
subsection (a), the Secretary may provide an item referred to in 
paragraph (2) to a Federal, State, or local law enforcement or 
emergency response agency to prepare for or respond to an emer-
gency involving chemical or biological agents if the Secretary deter-
mines that the item is not reasonably available from another source. 
"(2) An item referred to in paragraph (1) is any material or 
expertise of the Department of Defense appropriate for use in 
preparing for or responding to an emergency involving chemical 
or biological agents, including the following: 
"(A) Training facilities. 
"(B) Sensors. 
"(C) Protective clothing. 
"(D) Antidotes.". 
SEC. 379. REPORT ON DEPARTMENT OF DEFENSE MILITARY AND 
CIVIL DEFENSE PREPAREDNESS TO RESPOND TO EMER-
GENCIES RESULTING FROM A CHEMICAL, BIOLOGICAL, 
RADIOLOGICAL, OR NUCLEAR ATTACK. 
(a) REPORT.—(1) Not later than March 1, 1996, the Secretary 
of Defense and the Secretary of Energy shall submit to Congress 
a joint report on the military and civil defense plans and programs 
of the Department of Defense to prepare for and respond to the 
effects of an emergency in the United States resulting from a 
chemical, biological, radiological, or nuclear attack on the United 
States (hereinafter in this section referred to as an "attack-related 
civil defense emergency"). 
(2) The report shall be prepared in consultation with the Direc-
tor of the Federal Emergency Management Agency. 
(b) CONTENT OF REPORT.—^The report shall include the follow-
ing: 
(1) A discussion of the military and civil defense plans 
and programs of the Department of Defense for preparing for 
and responding to an attack-related civil defense emergency 
arising from an attack of a type for which the Department 
of Defense has a primary responsibility to respond. 
(2) A discussion of the military and civil defense plans 
and programs of the Department of Defense for preparing for 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 285 
and providing a response to an attack-related civil defense 
emergency arising from an attack of a type for which the 
Department of Defense has responsibility to provide a support-
ing response. 
(3) A description of any actions, and any recommended 
legislation, that the Secretaries consider necessary for improv-
ing the preparedness of the Department of Defense to respond 
effectively to an attack-related civil defense emergency. 
TITLE IV—MILITARY PERSONNEL 
AUTHORIZATIONS 
Subtitle A—^Active Forces 
SEC. 401. END STRENGTHS FOR ACTIVE FORCES. 
10 USC 115 note. 
(a) FISCAL YEAR 1996.—The Armed Forces are authorized 
strengths for active duty personnel as of September 30, 1996, as 
follows: 
(1) The Army, 495,000, of which not more than 81,300 
may be commissioned officers. 
(2) The Navy, 428,340, of which not more than 58,870 
may be commissioned officers. 
(3) The Marine Corps, 174,000, of which not more than 
17,978 may be commissioned officers. 
(4) The Air Force, 388,200, of which not more than 75,928 
may be commissioned officers. 
(b) FLOOR ON END STRENGTHS.—(1) Chapter 39 of title 10, 
United States Code, is amended by adding at the end the following 
new section: 
"§691. Permanent end strength levels to support two major 
regional contingencies 
"(a) The end strengths specified in subsection (b) are the mini-
mum strengths necessary to enable the armed forces to fulfill a 
national defense strategy calling for the United States to be able 
to successfully conduct two nearly simultaneous major regional 
contingencies. 
"(b) Unless otherwise provided by law, the number of members 
of the armed forces (other than the Coast Guard) on active duty 
at the end of any fiscal year shall be not less than the following: 
"(1) For the Army, 495,000. 
"(2) For the Navy, 395,000. 
"(3) For the Marine Corps, 174,000. 
"(4) For the Air Force, 381,000. 
"(c) No funds appropriated to the Department of Defense may 
be used to implement a reduction of the active duty end strength 
for any of the armed forces for any fiscal year below the level 
specified in subsection (b) unless the Secretary of Defense submits 
to Congress notice of the proposed lower end strength levels and 
a justification for those levels. No action may then be taken to 
implement such a reduction for that fiscal year until the end of 
the six-month period beginning on the date of the receipt of such 
notice by Congress. 
"(d) For a fiscal year for which the active duty end strength 
authorized by law pursuant to section 115(a)(1)(A) of this title 
110 STAT. 286 
PUBLIC LAW 104-106—FEB. 10, 1996 
for any of the armed forces is identical to the number applicable 
to that armed force under subsection (b), the Secretary of Defense 
may reduce that number by not more than 0.5 percent. 
"(e) The number of members of the armed forces on active 
duty shall be counted for purposes of this section in the same 
manner as applies under section 115(a)(1) of this title.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"691. Permanent end strength levels to support two major regional contingencies.". 
(c) ACTIVE COMPONENT END STRENGTH FLEXIBILITY.—Section 
115(c)(1) of title 10, United States Code, is amended by striking 
out "0.5 percent" and inserting in lieu thereof "1 percent". 
10 use 523 note. 
SEC. 402. TEMPORARY VARIATION IN DOPMA AUTHORIZED END 
STRENGTH LIMITATIONS FOR ACTIVE DUTY AIR FORCE 
AND NAVY OFFICERS IN CERTAIN GRADES. 
(a) AIR FORCE OFFICERS.—In the administration of the limita-
tion under section 523(a)(1) of title 10, United States Code, for 
fiscal years 1996 and 1997, the numbers applicable to officers 
of the Air Force serving on active duty in the grades of major, 
lieutenant colonel, and colonel shall be the numbers set forth for 
that fiscal year in the following table (rather than the numbers 
determined in accordance with the table in that section): 
Number of officers who may be serving on active duty in the 
Fiscal year: 
^^'^^ °^-
Major 
Lieutenant colonel 
Colonel 
1996 
15,566 
9,876 
3,609 
1997 
15,645 
9,913 
3,627 
(b) NAVY OFFICERS.—In the administration of the limitation 
under section 523(a)(2) of title 10, United States Code, for fiscal 
years 1996 and 1997, the numbers applicable to officers of the 
Navy serving on active duty in the grades of lieutenant commander, 
commander, and captain shall be the numbers set forth for that 
fiscal year in the following table (rather than the numbers deter-
mined in accordance with the table in that section): 
Number of officers who may be serving on active duty in the 
grade of: 
Fiscal year: 
^'^""mander"""" 
Commander 
Captain 
1996 
11,924 
7,390 
3,234 
1997 
11,732 
7,297 
3,188 
SEC. 403. CERTAIN GENERAL AND FLAG OFFICERS AWAITING RETIRE-
MENT NOT TO BE COUNTED. 
(a) DISTRIBUTION OF OFFICERS ON ACTIVE DUTY IN GENERAL 
AND FLAG OFFICER GRADES.—Section 525 of title 10, United States 
Code, is amended by adding at the end the following new subsection: 
"(d) An officer continuing to hold the grade of general or admiral 
under section 601(b)(4) of this title after relief from the position 
of Chairman of the Joint Chiefs of Staff, Chief of Staff" of the 
Army, Chief of Naval Operations, Chief of Staff" of the Air Force, 
or Commandant of the Marine Corps shall not be counted for 
purposes of this section.". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 287 
(b) NUMBER OF OFFICERS ON ACTIVE DUTY IN GRADE OF GEN-
ERAL OR ADMIRAL.—Section 528(b) of such title is amended— 
(1) by inserting "(1)" after "(b)"; and 
(2) by adding at the end the following: 
"(2) An officer continuing to hold the grade of general or admiral 
under section 601(b)(4) of this title after relief from the position 
of Chairman of the Joint Chiefs of Staff, Chief of Staff of the 
Army, Chief of Naval Operations, Chief of Staff of the Air Force, 
or Commandant of the Marine Corps shall not be counted for 
purposes of this section.". 
(c) CLARIFICATION.—Section 601(b) of such title is amended— 
(1) in the matter preceding paragraph (1), by striking out 
"of importance and responsibility designated" and inserting 
in lieu thereof "designated under subsection (a) or by law"; 
(2) in paragraph (1), by striking out "of importance and 
responsibility"; 
(3) in paragraph (2), by striking out "designating" and 
inserting in lieu thereof "designated under subsection (a) or 
by law"; and 
(4) in paragraph (4), by inserting "under subsection (a) 
or by law" after "designated". 
Subtitle B—Reserve Forces 
SEC. 411. END STRENGTHS FOR SELECTED RESERVE. 
10 USC 12001 
(a) FISCAL YEAR 1996.—^The Armed Forces are authorized 
strengths for Selected Reserve personnel of the reserve components 
as of September 30, 1996, as follows: 
(1) The Army National Guard of the United States, 373,000. 
(2) The Army Reserve, 230,000. 
(3) The Naval Reserve, 98,894. 
(4) The Marine Corps Reserve, 42,274. 
(5) The Air National Guard of the United States, 112,707. 
(6) The Air Force Reserve, 73,969. 
(7) The Coast Guard Reserve, 8,000. 
(b) WAIVER AUTHORITY.—The Secretary of Defense may vary 
the end strength authorized by subsection (a) by not more than 
2 percent. 
(c) ADJUSTMENTS.—The end strengths prescribed by subsection 
(a) for the Selected Reserve of any reserve component for a fiscal 
year shall be proportionately reduced by— 
(1) the total authorized strength of units organized to serve 
as units of the Selected Reserve of such component which 
are on active duty (other than for training) at the end of 
the fiscal year, and 
(2) the total number of individual members not in units 
organized to serve as units of the Selected Reserve of such 
component who are on active duty (other than for training 
or for unsatisfactory participation in training) without their 
consent at the end of the fiscal year. 
Whenever such units or such individual members are released 
from active duty during any fiscal year, the end strength prescribed 
for such fiscal year for the Selected Reserve of such reserve compo-
nent shall be proportionately increased by the total authorized 
strengths of such units and by the total number of such individual 
members. 
110 STAT. 288 
PUBLIC LAW 104-106—FEB. 10, 1996 
10 u s e 12001 
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUP-
note. 
PORT OF THE RESERVES. 
Within the end strengths prescribed in section 411(a), the 
reserve components of the Armed Forces are authorized, as of 
September 30, 1996, the following number of Reserves to be serving 
on full-time active duty or full-time duty, in the case of members 
of the National Guard, for the purpose of organizing, administering, 
recruiting, instructing, or training the reserve components: 
(1) The Army National Guard of the United States, 23,390. 
(2) The Army Reserve, 11,575. 
(3) The Naval Reserve, 17,587. 
(4) The Marine Corps Reserve, 2,559. 
(5) The Air National Guard of the United States, 10,066. 
(6) The Air Force Reserve, 628. 
SEC. 413. COUNTING OF CERTAIN ACTIVE COMPONENT PERSONNEL 
ASSIGNED IN SUPPORT OF RESERVE COMPONENT TRAIN-
ING. 
Section 414(c) of the National Defense Authorization Act for 
Fiscal Years 1992 and 1993 (Pubhc Law 102-190; 10 U.S.C. 12001 
note) is amended— 
(1) by inserting "(1)" before "The Secretary"; and 
(2) by adding at the end the following new paragraph: 
"(2) The Secretary of Defense may count toward the number 
of active component personnel required under paragraph (1) to 
be assigned to serve as advisers under the program under this 
section any active component personnel who are assigned to an 
active component unit (A) that was established principally for the 
purpose of providing dedicated training support to reserve compo-
nent units, and (B) the primary mission of which is to provide 
such dedicated training support.". 
SEC. 414. INCREASE IN NUMBER OF MEMBERS IN CERTAIN GRADES 
AUTHORIZED TO SERVE ON ACTIVE DUTY IN SUPPORT OF 
THE RESERVES. 
(a) OFFICERS.—The table in section 12011(a) of title 10, United 
States Code, is amended to read as follows: 
"^ A ^ y 
Navy 
^^/^^ 
^ag^/ 
Major or Lieutenant Commander 
3,219 
1,071 
643 
140 
Lieutenant Colonel or Commander 
1,524 
520 
672 
90 
Colonel or Navy Captain 
412 
188 
274 
30". 
(b) SENIOR ENLISTED MEMBERS.—^The table in section 12012(a) 
of such title is amended to read as follows: 
"Grade 
Army 
Navy 
Air 
Force 
Marine 
Corps 
E-9 
603 
202 
E-8 
2,585 
429 
366 
890 
20 
94". 
SEC. 415. RESERVES ON ACTIVE DUTY IN SUPPORT OF COOPERATIVE 
THREAT REDUCTION PROGRAMS NOT TO BE COUNTED. 
Section 115(d) of title 10, United States Code, is amended 
by adding at the end the following: 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 289 
"(8) Members of the Selected Reserve of the Ready Reserve 
on active duty for more that 180 days to support programs 
described in section 1203(b) of the Cooperative Threat Reduc-
tion Act of 1993 (title XII of Public Law 103-160; 22 U.S.C. 
5952(b)).". 
SEC. 416. RESERVES ON ACTIVE DUTY FOR MILITARY-TO-MILITARY 
CONTACTS AND COMPARABLE ACTIVITIES NOT TO BE 
COUNTED. 
Section 168 of title 10, United States Code, is amended— 
(1) by redesignating subsection (f) as subsection (g); and 
(2) by inserting after subsection (e) the following new sub-
section (f): 
"(f) ACTIVE DUTY END STRENGTHS.—(1) A member of a reserve 
component referred to in paragraph (2) shall not be counted for 
purposes of the following personnel strength limitations: 
"(A) The end strength for active-duty personnel authorized 
pursuant to section 115(a)(1) of this title for the fiscal year 
in which the member carries out the activities referred to 
in paragraph (2). 
"(B) The authorized daily average for members in pay 
grades E-8 and E-9 under section 517 of this title for the 
calendar year in which the member carries out such activities. 
"(C) The authorized strengths for commissioned officers 
under section 523 of this title for the fiscal year in which 
the member carries out such activities. 
"(2) A member of a reserve component referred to in paragraph 
(1) is any member on active duty under an order to active duty 
for 180 days or more who is engaged in activities authorized under 
this section.". 
Subtitle C—Military Training Student 
Loads 
SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS. 
(a) IN GENERAL.—For fiscal year 1996, the components of the 
Armed Forces are authorized average military training loads as 
follows: 
(1) The Army, 75,013. 
(2) The Navy, 44,238. 
(3) The Marine Corps, 26,095. 
(4) The Air Force, 33,232. 
(b) SCOPE.—The average military training student loads author-
ized for an armed force under subsection (a) apply to the active 
and reserve components of that armed force. 
(c) ADJUSTMENTS.—The average military training student loads 
authorized in subsection (a) shall be adjusted consistent with the 
end strengths authorized in subtitles A and B. The Secretary of 
Defense shall prescribe the manner in which such adjustments 
shall be apportioned. 
110 STAT. 290 
PUBLIC LAW 104-106—FEB. 10, 1996 
Subtitle D—^Authorization of 
Appropriations 
SEC. 431. AUTHORIZATION 
OF 
APPROPRIATIONS 
FOR 
MILITARY 
PERSONNEL. 
There is hereby authorized to be appropriated to the Depart-
ment of Defense for miUtary personnel for fiscal year 1996 a total 
of $69,191,008,000. The authorization in the preceding sentence 
supersedes any other authorization of appropriations (definite or 
indefinite) for such purpose for fiscal year 1996. 
10 use 115 note. 
SEC. 432. AUTHORIZATION 
FOR INCREASE 
IN ACTIVE-DUTY 
END 
STRENGTHS. 
(a) AUTHORIZATION.—^There is hereby authorized to be appro-
priated to the Department of Defense for fiscal year 1996 for mili-
tary personnel the sum of $112,000,000. Any amount appropriated 
pursuant to this section shall be allocated, in such manner as 
the Secretary of Defense prescribes, among appropriations for 
active-component military personnel for that fiscal year and shall 
be available only to increase the number of members of the Armed 
Forces on active duty during that fiscal year (compared to the 
number of members that would be on active duty but for such 
appropriation). 
(b) EFFECT ON END STRENGTHS.—^The end-strength authoriza-
tions in section 401 shall each be deemed to be increased by such 
number as necessary to take account of additional members of 
the Armed Forces authorized by the Secretary of Defense pursuant 
to subsection (a). 
TITLE V—MILITARY PERSONNEL 
POLICY 
Subtitle A—Officer Personnel Policy 
SEC. 501. JOINT OFFICER MANAGEMENT. 
(a) 
CRITICAL JOINT DUTY ASSIGNMENT POSITIONS.—Section 
661(d)(2)(A) of title 10, United States Code, is amended by striking 
out "1,000" and inserting in lieu thereof "800". 
(b) ADDITIONAL QUALIFYING JOINT SERVICE.—Section 664 
of 
such title is amended by adding at the end the following: 
"(i) 
JOINT DUTY CREDIT FOR CERTAIN JOINT TASK FORCE 
ASSIGNMENTS.—(1) In the case of an officer who completes service 
in a qualifying temporary joint task force assignment, the Secretary 
of Defense, with the advice of the Chairman of the Joint Chiefs 
of Staff, may (subject to the criteria prescribed under paragraph 
(4)) grant the officer— 
"(A) credit for having completed a full tour of duty in 
a joint duty assignment; or 
"(B) credit countable for determining cumulative service 
in joint duty assignments. 
"(2)(A) For purposes of paragraph (1), a qualifying temporary 
joint task force assignment of an officer is a temporary assignment, 
any part of which is performed by the officer on or after the 
date of the enactment of this subsection— 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 291 
"(i) to the headquarters staff of a United States joint task 
force that is part of a unified command or the United States 
element of the headquarters staff of a multinational force; 
and 
"(ii) with respect to which the Secretary of Defense deter-
mines that service of the officer in that assignment is equivalent 
to that which would be gained by the officer in a joint duty 
assignment. 
"(B) An officer may not be granted credit under this subsection 
unless the officer is recommended for such credit by the Chairman 
of the Joint Chiefs of Staff. 
"(3) Credit under paragraph (1) (including a determination 
under paragraph (2)(A)(ii) and a recommendation under paragraph 
(2)(B) with respect to such credit) may be granted only on a case-
by-case basis in the case of an individual officer. 
"(4) The Secretary of Defense shall prescribe by regulation Regulations. 
criteria for determining whether an officer may be granted credit 
under paragraph (1) with respect to service in a qualifying tem-
porary joint task force assignment. The criteria shall apply uni-
formly among the armed forces and shall include the following 
requirements: 
"(A) For an officer to be credited as having completed 
a full tour of duty in a joint duty assignment, the length 
of the officer's service in the qualifying temporary joint task 
force assignment must meet the requirements of subsection 
(a) or (c). 
"(B) For an officer to be credited with service for purposes 
of determining cumulative service in joint duty assignments, 
the officer must serve at least 90 consecutive days in the 
qualifying temporary joint task force assignment. 
"(C) The service must be performed in support of a mission 
that is directed by the President or that is assigned by the 
President to United States forces in the joint task force 
involved. 
"(D) The joint task force must be constituted or designated 
by the Secretary of Defense or by the commander of a combatant 
command or of another force. 
"(E) The joint task force must conduct combat or combat-
related operations in a unified action under joint or multi-
national command and control. 
"(5) Officers for whom joint duty credit is granted pursuant 
to this subsection may not be taken into account for the purposes 
of any of the following provisions of this title: section 661(d)(1), 
section 662(a)(3), section 662(b), subsection (a) of this section, and 
paragraphs (7), (8), (9), (11), and (12) of section 667. 
"(6) In the case of an officer credited with having completed 
a full tour of duty in a joint duty assignment pursuant to this 
subsection, the Secretary of Defense may waive the requirement 
in paragraph (1)(B) of section 661(c) of this title that the tour 
of duty in a joint duty assignment be performed after the officer 
completes a program of education referred to in paragraph (1)(A) 
of that section. The provisions of subparagraphs (C) and (D) of 
section 661(c)(3) of this title shall apply to such a waiver in the 
same manner as to a waiver under subparagraph (A) of that sec-
tion.". 
110 STAT. 292 
PUBLIC LAW 104-106—FEB. 10, 1996 
(c) INFORMATION IN ANNUAL REPORT.—Section 667 of such title 
is amended by striking out paragraph (16) and inserting after 
paragraph (15) the following new paragraph (16): 
"(16) The number of officers granted credit for service in 
joint duty assignments under section 664(i) of this title and— 
"(A) of those officers— 
"(i) the number of officers credited with having 
completed a tour of duty in a joint duty assignment; 
and 
"(ii) the number of officers granted credit for pur-
poses of determining cumulative service in joint duty 
assignments; and 
"(B) the identity of each operation for which an officer 
has been granted credit pursuant to section 664(i) of this 
title and a brief description of the mission of the operation.". 
(d) APPLICABILITY OF LIMITATION ON WAIVER AUTHORITY.—Sec-
tion 661(c)(3) of such title is amended— 
(1) in the third sentence of subparagraph (D), by striking 
out "The total number" and inserting in lieu thereof "In the 
case of officers in grades below brigadier general and rear 
admiral (lower half), the total number"; and 
(2) by adding at the end the following new subparagraph: 
"(E) There may not be more than 32 general and flag officers 
on active duty at the same time who were selected for the joint 
specialty while holding a general or flag officer grade and for 
whom a waiver was granted under this subparagraph.". 
(e) LENGTH OF SECOND JOINT TOUR.—Section 664 of such title 
is amended— 
(1) in subsection (e)(2), by inserting after subparagraph 
(B) the following: 
"(C) Service described in subsection (f)(6), except that no 
more than 10 percent of all joint duty assignments shown 
on the list published pursuant to section 668(b)(2)(A) of this 
title may be so excluded in any year."; and 
(2) in subsection (f)— 
(A) in the matter preceding paragraph (1), by striking 
out "completion of—" and inserting in lieu thereof "comple-
tion of any of the following:"; 
(B) by striking out "a" at the beginning of paragraphs 
(1), (2), (4), and (5) and inserting in lieu thereof "A"; 
(C) by striking out "cumulative" in paragraph (3) and 
inserting in lieu thereof "Cumulative"; 
(D) by striking out the semicolon at the end of para-
graphs (1), (2), and (3) and "; or" at the end of paragraph 
(4) and inserting in lieu thereof a period; and 
(E) by adding at the end the following: 
"(6) A second joint duty assignment that is less than the 
period required under subsection (a), but not less than two 
years, without regard to whether a waiver was granted for 
such assignment under subsection (b).". 
(f) TECHNICAL AMENDMENT.—Section 664(e)(1) of such title is 
amended by striking out "(after fiscal year 1990)". 
SEC. 502. RETIRED GRADE FOR OFFICERS IN GRADES ABOVE MAJOR 
GENERAL AND REAR ADMIRAL. 
(a) APPLICABILITY OF TIME-IN-GRADE REQUIREMENTS.—Section 
1370 of title 10, United States Code, is amended— 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 293 
(1) in subsection (a)(2)(A), by striking out "and below 
lieutenant general or vice admiral"; and 
(2) in the first sentence of subsection (d)(2)(B), as added 
effective October 1, 1996, by section 1641 of the Reserve Officer 
Personnel Management Act (title XVI of Public Law 103-337; 
108 Stat. 2968), by striking out "and below lieutenant general 
or vice admiral". 
(b) RETIREMENT IN HIGHEST GRADE UPON CERTIFICATION OF 
SATISFACTORY SERVICE.—Subsection (c) of such section is amended 
to read as follows: 
"(c) OFFICERS IN 0-9 AND O-IO GRADES.—(1) An officer who 
is serving in or has served in the grade of general or admiral 
or lieutenant general or vice admiral may be retired in that grade 
under subsection (a) only after the Secretary of Defense certifies 
in writing to the President and Congress that the officer served 
on active duty satisfactorily in that grade. 
"(2) In the case of an officer covered by paragraph (1), the 
three-year service-in-grade requirement in paragraph (2)(A) of sub-
section (a) may not be reduced or waived under that subsection— 
"(A) while the officer is under investigation for alleged 
misconduct; or 
"(B) while there is pending the disposition of an adverse 
personnel action against the officer for alleged misconduct.". 
(c) REPEAL OF SUPERSEDED PROVISIONS.—Sections 3962(a), 
5034, 5043(c), and 8962(a) of such title are repealed. 
(d) 
TECHNICAL AND CLERICAL AMENDMENTS.—(1) Sections 
3962(b) and 8962(b) of such title are amended by striking out 
"(b) Upon" and inserting in lieu thereof "Upon". 
(2) The table of sections at the beginning of chapter 505 of 
such title is amended by striking out the item relating to section 
5034. 
(e) EFFECTIVE DATE FOR AMENDMENT TO PROVISION TAKING 
lo use i370 
EFFECT IN 1996.—The amendment made by subsection (a)(2) shall note. 
take effect on October 1, 1996, immediately after subsection (d) 
of section 1370 of title 10, United States Code, takes effect under 
section 1691(b)(1) of the Reserve Officer Personnel Management 
Act (108 Stat. 3026). 
(f) PRESERVATION OF APPLICABILITY OF LIMITATION.—Section 
1370(a)(2)(C) of title 10, United States Code, is amended by striking 
out "The number of officers in an armed force in a grade" and 
inserting in lieu thereof "In the case of a grade below the grade 
of lieutenant general or vice admiral, the number of members 
of one of the armed forces in that grade". 
(g) STYLISTIC AMENDMENTS.—Section 1370 of title 10, United 
States Code, is further amended— 
(1) in subsection (a), by striking out "(a)(1)" and inserting 
in lieu thereof "(a) RULE FOR RETIREMENT IN HIGHEST GRADE 
HELD SATISFACTORILY.—(1)"; 
(2) in subsection (b), by inserting "RETIREMENT IN NEXT 
LOWER GRADE.—" after "(b)"; and 
(3) in subsection (d), as added effective October 1, 1996, 
by section 1641 of the Reserve Officer Personnel Management 
Act (title XVI of Public Law 103-337; 108 Stat. 2968), by 
striking out "(d)(1)" and inserting in lieu thereof "(d) RESERVE 
OFFICERS.—(1)". 
110 STAT. 294 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 503. WEARING OF INSIGNIA FOR fflGHER GRADE BEFORE PRO-
MOTION. 
(a) AUTHORITY AND LIMITATIONS.—(1) Chapter 45 of title 10, 
United States Code, is amended by adding at the end the following 
new section: 
"§ 777. Wearing of insignia of higher grade before promotion 
(frocking): authority; restrictions 
"(a) AUTHORITY.—^An officer who has been selected for pro-
motion to the next higher grade may be authorized, under regula-
tions and policies of the Department of Defense and subject to 
subsection (b), to wear the insignia for that next higher grade. 
An officer who is so authorized to wear the insignia of the next 
higher grade is said to be 'frocked' to that grade. 
"(b) RESTRICTIONS.—^An officer may not be authorized to wear 
the insignia for a grade as described in subsection (a) unless— 
"(1) the Senate has given its advice and consent to the 
appointment of the officer to that grade; and 
"(2) the officer is serving in, or has received orders to 
serve in, a position for which that grade is authorized. 
"(c) 
BENEFITS NOT TO BE CONSTRUED AS 
ACCRUING.—(1) 
Authority provided to an officer as described in subsection (a) to 
wear the insignia of the next higher grade may not be construed 
as conferring authority for that officer to— 
"(A) be paid the rate of pay provided for an officer in 
that grade having the same number of years of service as 
that officer; or 
"(B) assume any legal authority associated with that grade. 
"(2) The period for which an officer wears the insignia of the 
next higher grade under such authority may not be taken into 
account for any of the following purposes: 
"(A) Seniority in that grade. 
"(B) Time of service in that grade. 
"(d) LIMITATION ON NUMBER OF OFFICERS FROCKED TO SPECI-
FIED GRADES.—(1) The total number of colonels and Navy captains 
on the active-duty list who are authorized as described in subsection 
(a) to wear the insignia for the grade of brigadier general or rear 
admiral (lower half), as the case may be, may not exceed the 
following: 
"(A) During fiscal years 1996 and 1997, 75. 
"(B) During fiscal year 1998, 55. 
"(C) After fiscal year 1998, 35. 
"(2) The number of officers of an armed force on the active-
duty list who are authorized as described in subsection (a) to 
wear the insignia for a grade to which a limitation on total number 
applies under section 523(a) of this title for a fiscal year may 
not exceed 1 percent of the total number provided for the officers 
in that grade in that armed force in the administration of the 
limitation under that section for that fiscal year.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"777. Wearing of insignia of higher grade before promotion (frocking): authority; re-
strictions.". 
10 u s e 777 note. 
(b) TEMPORARY VARIATION OF LIMITATIONS ON NUMBERS OF 
FROCKED OFFICERS.—In the administration of section 777(d)(2) of 
title 10, United States Code (as added by subsection (a)), the percent 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 295 
limitation applied under that section for fiscal year 1996 shall 
be 2 percent (instead of 1 percent). 
(c) REPORT.—Not later than September 1, 1996, the Secretary 
of Defense shall submit to Congress a report providing the assess-
ment of the Secretary on the practice, known as "frocking", of 
authorizing an officer who has been selected for promotion to the 
next higher grade to wear the insignia for that next higher grade. 
The report shall include the Secretary's assessment of the appro-
priate number, if any, of colonels and Navy captains to be eligible 
under section 777(d)(1) of title 10, United States Code (as added 
by subsection (a)), to wear the insignia for the grade of brigadier 
general or rear admiral (lower half). 
SEC. 504. AUTHORITY TO EXTEND TRANSITION PERIOD FOR OFFI-
CERS SELECTED FOR EARLY RETIREMENT. 
(a) SELECTIVE RETIREMENT OF WARRANT OFFICERS.—Section 
581 of title 10, United States Code, is amended by adding at 
the end the following new subsection: 
"(e) The Secretary concerned may defer for not more than 
90 days the retirement of an officer otherwise approved for early 
retirement under this section in order to prevent a personal hard-
ship to the officer or for other humanitarian reasons. Any such 
deferral shall be made on a case-by-case basis considering the 
circumstances of the case of the particular officer concerned. The 
authority of the Secretary to grant such a deferral may not be 
delegated.". 
(b) SELECTIVE EARLY RETIREMENT OF ACTIVE-DUTY OFFICERS.— 
Section 638(b) of title 10, United States Code, is amended by adding 
at the end the following new paragraph: 
"(3) The Secretary concerned may defer for not more than 
90 days the retirement of an officer otherwise approved for early 
retirement under this section or section 638a of this title in order 
to prevent a personal hardship to the officer or for other humani-
tarian reasons. Any such deferral shall be made on a case-by-
case basis considering the circumstances of the case of the particular 
officer concerned. The authority of the Secretary to grant such 
a deferral may not be delegated.". 
SEC. 505. ARMY OFFICER MANNING LEVELS. 
(a) IN GENERAL.—(1) Chapter 331 of title 10, United States 
Code, is amended by inserting after the table of sections the follow-
ing new section: 
"§3201. Officers on active duty: minimum strength based 
on requirements 
"(a) The Secretary of the Army shall ensure that (beginning 
with fiscal year 1999) the strength at the end of each fiscal year 
of officers on active duty is sufficient to enable the Army to meet 
at least that percentage of the programmed manpower structure 
for officers for the active component of the Army that is provided 
for in the most recent Defense Planning Guidance issued by the 
Secretary of Defense. 
"(b) The number of officers on active duty shall be counted 
for purposes of this section in the same manner as applies under 
section 115(a)(1) of this title. 
"(c) In this section: 
"(1) The term 'programmed manpower structure' means 
the aggregation of billets describing the full manpower require-
110 STAT. 296 
PUBLIC LAW 104-106—FEB. 10, 1996 
ments for units and organizations in the programmed force 
structure. 
"(2) The term 'programmed force structure' means the set 
of units and organizations that exist in the current year and 
that is planned to exist in each future year under the then-
current Future-Years Defense Program.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after "Sec." the following new item: 
"3201. Officers on active duty: minimum strength based on requirements.". 
10 use 3201 
(b) ASSISTANCE IN ACCOMPLISHING REQUIREMENT.—^The Secretary 
note. 
of Defense shall provide to the Army sufficient personnel and finan-
cial resources to enable the Army to meet the requirement specified 
in section 3201 of title 10, United States Code, as added by sub-
section (a). 
SEC. 506. AUTHORITY FOR MEDICAL DEPARTMENT OFFICERS OTHER 
THAN PHYSICIANS TO BE APPOINTED AS SURGEON GEN-
ERAL. 
(a) SURGEON GENERAL OF THE ARMY.—The third sentence of 
section 3036(b) of title 10, United States Code, is amended by 
inserting after "The Surgeon General" the following: "may be 
appointed from officers in any corps of the Army Medical Depart-
ment and". 
(b) SURGEON GENERAL OF THE NAVY.—Section 5137 of such 
title is amended— 
(1) in the first sentence of subsection (a), by striking out 
"in the Medical Corps" and inserting in lieu thereof "in any 
corps of the Navy Medical Department"; and 
(2) in subsection (b), by striking out "in the Medical Corps" 
and inserting in lieu thereof "who is qualified to be the Chief 
of the Bureau of Medicine and Surgery". 
(c) SURGEON GENERAL OF THE AIR FORCE.—The first sentence 
of section 8036 of such title is amended by striking out "designated 
as medical officers under section 8067(a) of this title" and inserting 
in lieu thereof "in the Air Force medical department". 
SEC. 
507. 
DEPUTY 
JUDGE 
ADVOCATE 
GENERAL 
OF 
THE 
AIR 
FORCE. 
(a) TENURE AND GRADE OF DEPUTY JUDGE ADVOCATE GEN-
ERAL.—Section 8037(d)(1) of such title is amended— 
(1) in the second sentence, by striking out "two years" 
and inserting in lieu thereof "four years"; and 
(2) by striking out the last sentence and inserting in lieu 
thereof the following: "An officer appointed as Deputy Judge 
Advocate General who holds a lower regular grade shall be 
appointed in the regular grade of major general.". 
10 use 8037 
(b) EFFECTIVE DATE.—The amendments made by subsection 
note. 
(a) apply to any appointment to the position of Deputy Judge 
Advocate General of the Air Force that is made after the date 
of the enactment of this Act. 
SEC. 508. AUTHORITY FOR TEMPORARY PROMOTIONS FOR CERTAIN 
NAVY LIEUTENANTS WITH CRITICAL SKILLS. 
(a) EXTENSION OF ALTTHORITY.—Subsection (f) of section 5721 
of title 10, United States Code, is amended by striking out "Septem-
ber 30, 1995" and inserting in heu thereof "September 30, 1996". 
(b) LIMITATION.—Such section is further amended— 
(1) by redesignating subsection (f), as amended by sub-
section (a), as subsection (g); and 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 297 
(2) by inserting after subsection (e) the following new sub-
section (f): 
"(f) LIMITATION ON NUMBER OF ELIGIBLE POSITIONS.—(1) An 
appointment under this section may only be made for service in 
a position designated by the Secretary of the Navy for purposes 
of this section. The number of positions so designated may not 
exceed 325. 
"(2) Whenever the Secretary makes a change to the positions Notice, 
designated under paragraph (1), the Secretary shall submit notice 
of the change in writing to Congress.". 
(c) REPORT.—^Not later than April 1, 1996, the Secretary of 
Defense shall submit to Congress a report providing the Secretary's 
assessment of that continuing need for the promotion authority 
under section 5721 of title 10, United States Code. The Secretary 
shall include in the report the following: 
(1) The nature and grade structure of the positions for 
which such authority has been used. 
(2) The cause or causes of the reported chronic shortages 
of qualified personnel in the required grade to fill the positions 
specified under paragraph (1). 
(3) The reasons for the perceived inadequacy of the officer 
promotion system (including "below-the-zone" selections) to pro-
vide sufficient officers in the required grade to fill those posi-
tions. 
(4) The extent to which a bonus program or some other 
program would be a more appropriate means of resolving the 
reported chronic shortages in engineering positions. 
(d) CLERICAL AMENDMENTS.—Section 5721 of title 10, United 
States Code, is amended as follows: 
(1) Subsection (a) is amended by inserting 
"PROMO 
TION 
AUTHORITY 
FOR CERTAIN 
OFFICER 
WITH 
CRITICAL 
SKILLS.—" after "(a)". 
(2) Subsection (b) is amended by inserting "STATUS OF 
OFFICERS APPOINTED.—" after "(b)". 
(3) Subsection (c) is amended by inserting "BOARD REC-
OMMENDATION REQUIRED.—" after "(c)". 
(4) Subsection (d) is amended by inserting "ACCEPTANCE 
AND EFFECTIVE DATE OF APPOINTMENT.—" after "(d)". 
(5) Subsection (e) is amended by inserting "TERMINATION 
OF APPOINTMENT.—" after "(e)". 
(6) Subsection (g), as redesignated by subsection (b)(1), 
is amended by inserting 
"TERMINATION OF APPOINTMENT 
AUTHORITY.—" after "(g)". 
(e) EFFECTIVE DATE.—Subsection (f) of section 5721 of title 
lo use 5721 
10, United States Code, as added by subsection (b)(2), shall take ^ote. 
effect at the end of the 30-day period beginning on the date of 
the enactment of this Act and shall apply to any appointment 
under that section after the end of such period. 
SEC. 509. RETIREMENT FOR YEARS OF SERVICE OF DIRECTORS OF 
ADMISSIONS OF MILITARY AND AIR FORCE ACADEMIES. 
(a) MILITARY ACADEMY.—(1) Section 3920 of title 10, United 
States Code, is amended to read as follows: 
29-194 O - 96 - 11: QL 3 Part 1 
110 STAT. 298 
PUBLIC LAW 104-106—FEB. 10, 1996 
"§3920. More than thirty years: permanent professors and 
the Director of Admissions of the United States 
Military Academy 
"(a) The Secretary of the Army may retire an officer specified 
in subsection (b) who has more than 30 years of service as a 
commissioned officer. 
"(b) Subsection (a) appHes in the case of the following officers: 
"(1) Any permanent professor of the United States Military 
Academy. 
"(2) The Director of Admissions of the United States Mili-
tary Academy.". 
(2) The item relating to such section in the table of sections 
at the beginning of chapter 367 of such title is amended to read 
as follows: 
"3920. More than thirty years: permanent professors and the Director of Admissions 
of the United States MiUtary Academy.". 
(b) AIR FORCE ACADEMY.—(1) Section 8920 of title 10, United 
States Code, is amended to read as follows: 
"§8920. More than thirty years: permanent professors and 
the Director of Admissions of the United States 
Air Force Academy 
"(a) The Secretary of the Air Force may retire an officer speci-
fied in subsection (b) who has more than 30 years of service as 
a commissioned officer. 
"(b) Subsection (a) applies in the case of the following officers: 
"(1) Any permanent professor of the United States Air 
Force Academy. 
"(2) The Director of Admissions of the United States Air 
Force Academy.". 
(2) The item relating to such section in the table of sections 
at the beginning of chapter 867 of such title is amended to read 
as follows: 
"8920. More than thirty years: permanent professors and the Director of Admissions 
of the United States Air Force Academy.". 
Subtitle B—Matters Relating to Reserve 
Components 
SEC. 511. EXTENSION OF CERTAIN RESERVE OFFICER MANAGEMENT 
AUTHORITIES. 
(a) GRADE DETERMINATION AUTHORITY FOR CERTAIN RESERVE 
MEDICAL OFFICERS.—Sections 3359(b) and 8359(b) of title 10, 
United States Code, are each amended by striking out "September 
30, 1995" and inserting in lieu thereof "September 30, 1996". 
(b) PROMOTION AUTHORITY FOR CERTAIN RESERVE OFFICERS 
SERVING ON ACTIVE DUTY.—Sections 3380(d) and 8380(d) of title 
10, United States Code, are each amended by striking out "Septem-
ber 30, 1995" and inserting in lieu thereof "September 30, 1996". 
10 use 3360 
(c) YEARS OF SERVICE FOR MANDATORY TRANSFER TO THE 
note. 
RETIRED RESERVE.—Section 1016(d) of the Department of Defense 
Authorization Act, 1984 (10 U.S.C. 3360) is amended by striking 
out "September 30, 1995" and inserting in lieu thereof "September 
30, 1996". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 299 
SEC. 512. MOBILIZATION INCOME INSURANCE PROGRAM FOR MEM-
BERS OF READY RESERVE. 
(a) ESTABLISHMENT OF PROGRAM.—(1) Subtitle E of title 10, 
United States Code, is amended by inserting after chapter 1213 
the following new chapter: 
"CHAPTER 1214—READY RESERVE MOBILIZATION 
INCOME INSURANCE 
"Sec. 
"12521. Definitions. 
"12522. Establishment of insurance program. 
"12523. Risk insured. 
"12524. Enrollment and election of benefits. 
"12525. Benefit amounts. 
"12526. Premiums. 
"12527. Payment of premiums. 
"12528. Reserve Mobilization Income Insiu-ance Fund. 
"12529. Board of Actuaries. 
"12530. Payment of benefits. 
"12531. Purchase of insurance. 
"12532. Termination for nonpayment of premiums; forfeiture. 
*
*
§ 12521. Definitions 
"In this chapter: 
"(1) The term 'insurance program' means the Ready Reserve 
Mobilization Income Insurance Program established under sec-
tion 12522 of this title. 
"(2) The term 'covered service' means active duty performed 
by a member of a reserve component under an order to active 
duty for a period of more than 30 days which specifies that 
the member's service— 
"(A) is in support of an operational mission for which 
members of the reserve components have been ordered 
to active duty without their consent; or 
"(B) is in support of forces activated during a period 
of war declared by Congress or a period of national emer-
gency declared by the President or Congress. 
"(3) The term 'insured member' means a member of the 
Ready Reserve who is enrolled for coverage under the insurance 
program in accordance with section 12524 of this title. 
"(4) The term 'Secretary' means the Secretary of Defense. 
"(5) The term 'Department' means the Department of 
Defense. 
"(6) The term 'Board of Actuaries' means the Department 
of Defense Education Benefits Board of Actuaries referred to 
in section 2006(e)(1) of this title. 
"(7) The term 'Fund' means the Reserve Mobilization 
Income Insurance Fund established by section 12528(a) of this 
title. 
*
*
§ 12522. Establishment of insurance program 
"(a) ESTABLISHMENT.—The Secretary shall establish for mem-
bers of the Ready Reserve (including the Coast Guard Reserve) 
an insurance program to be known as the 'Ready Reserve Mobiliza-
tion Income Insurance Program'. 
"(b) 
ADMINISTRATION.—The 
insurance 
program 
shall 
be 
administered by the Secretary. The Secretary may prescribe in 
regulations such rules, procedures, and policies as the Secretary 
considers necessary or appropriate to carry out the insurance pro-
gram. 
110 STAT. 300 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(c) AGREEMENT WITH SECRETARY OF TRANSPORTATION.—The 
Secretary and the Secretary of Transportation shall enter into an 
agreement with respect to the administration of the insurance 
program for the Coast Guard Reserve. 
"§ 12523. Risk insured 
"(a) IN GENERAL.—^The insurance program shall insure mem-
bers of the Ready Reserve against the risk of being ordered into 
covered service. 
"(b) ENTITLEMENT TO BENEFITS.—(1) 
An insured 
member 
ordered into covered service shall be entitled to payment of a 
benefit for each month (and fraction thereof) of covered service 
that exceeds 30 days of covered service, except that no member 
may be paid under the insurance program for more than 12 months 
of covered service served during any period of 18 consecutive 
months. 
"(2) Payment shall be based solely on the insured status of 
a member and on the period of covered service served by the 
member. Proof of loss of income or of expenses incurred as a 
^ 
result of covered service may not be required. 
"§ 12524. Enrollment and election of benefits 
"(a) ENROLLMENT.—(1) Except as provided in subsection (f), 
upon first becoming a member of the Ready Reserve, a member 
shall be automatically enrolled for coverage under the insurance 
program. An automatic enrollment of a member shall be void if 
within 60 days after first becoming a member of the Ready Reserve 
the member declines insurance under the program in accordance 
with the regulations prescribed by the Secretary. 
"(2) Promptly after the insurance program is established, the 
Secretary shall offer to members of the reserve components who 
are then members of the Ready Reserve (other than members 
ineligible under subsection (f)) an opportunity to enroll for coverage 
under the insurance program. A member who fails to enroll within 
60 days after being offered the opportunity shall be considered 
as having declined to be insured under the program. 
"(3) A member of the Ready Reserve ineligible to enroll under 
subsection (f) shall be afforded an opportunity to enroll upon being 
released from active duty in accordance with regulations prescribed 
by the Secretary if the member has not previously had the oppor-
tunity to be enrolled under paragraph (1) or (2). A member who 
fails to enroll within 60 days after being afforded that opportunity 
shall be considered as having declined to be insured under the 
program. 
"(b) ELECTION OF BENEFIT AMOUNT.—^The amount of a mem-
ber's monthly benefit under an enrollment shall be the basic benefit 
under subsection (a) of section 12525 of this title unless the member 
elects a different benefit under subsection (b) of such section within 
60 days after first becoming a member of the Ready Reserve or 
within 60 days after being offered the opportunity to enroll, as 
the case may be. 
"(c) ELECTIONS IRREVOCABLE.—(1) An election to decline insur-
ance pursuant to paragraph (1) or (2) of subsection (a) is irrevocable. 
"(2) The amount of coverage may not be increased after enroll-
ment. 
"(d) ELECTION TO TERMINATE.—^A member may terminate an 
enrollment at any time. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 301 
"(e) INFORMATION TO BE FURNISHED.—The Secretary shall 
ensure that members referred to in subsection (a) are given a 
written explanation of the insurance program and are advised that 
they have the right to decline to be insured and, if not declined, 
to elect coverage for a reduced benefit or an enhanced benefit 
under subsection (b). 
"(f) MEMBERS INELIGIBLE TO ENROLL.—Members of the Ready 
Reserve serving on active duty (or full-time National Guard duty) 
are not eligible to enroll for coverage under the insurance program. 
The Secretary may define any additional category of members of 
the Ready Reserve to be excluded from eligibility to purchase insur-
ance under this chapter. 
"§ 12525. Benefit amounts 
"(a) BASIC BENEFIT.—The basic benefit for an insured member 
under the insurance program is $1,000 per month (as adjusted 
under subsection (d)). 
"(b) REDUCED AND ENHANCED BENEFITS.—Under the regula-
tions prescribed by the Secretary, a person enrolled for coverage 
under the insurance program may elect— 
"(1) a reduced coverage benefit equal to one-half the amount 
of the basic benefit; or 
"(2) an enhanced benefit in the amount of $1,500, $2,000, 
$2,500, $3,000, $3,500, $4,000, $4,500, or $5,000 per month 
(as adjusted under subsection (d)). 
"(c) AMOUNT FOR PARTIAL MONTH.—The amount of insurance 
payable to an insured member for any period of covered service 
that is less than one month shall be determined by multiplying 
Vso of the monthly benefit rate for the member by the number 
of days of the covered service served by the member during such 
period. 
"(d) ADJUSTMENT OF AMOUNTS.—(1) The Secretary shall deter-
mine annually the effect of inflation on benefits and shall adjust 
the amounts set forth in subsections (a) and (b)(2) to maintain 
the constant dollar value of the benefit. 
"(2) If the amount of a benefit as adjusted under paragraph 
(1) is not evenly divisible by $10, the amount shall be rounded 
to the nearest multiple of $10, except that an amount evenly divis-
ible by $5 but not by $10 shall be rounded to the next lower 
amount that is evenly divisible by $10. 
"§ 12526. Premiums 
"(a) ESTABLISHMENT OF RATES.—(1) The Secretary, in consulta-
tion with the Board of Actuaries, shall prescribe the premium 
rates for insurance under the insurance program. 
"(2) The Secretary shall prescribe a fixed premium rate for 
each $1,000 of monthly insurance benefit. The premium amount 
shall be equal to the share of the cost attributable to insuring 
the member and shall be the same for all members of the Ready 
Reserve who are insured under the insurance program for the 
same benefit amount. The Secretary shall prescribe the rate on 
the basis of the best available estimate of risk and financial expo-
sure, levels of subscription by members, and other relevant factors. 
"(b) LEVEL PREMIUMS.—The premium rate prescribed for the 
first year of insurance coverage of an insured member shall be 
continued without change for subsequent years of insurance cov-
erage, except that the Secretary, after consultation with the Board 
110 STAT. 302 
PUBLIC LAW 104-106—FEB. 10, 1996 
of Actuaries, may adjust the premium rate in order to fund inflation-
adjusted benefit increases on an actuarially sound basis. 
"§ 12527. Payment of premiums 
"(a) METHODS OF PAYMENT.—(1) The monthly premium for 
coverage of a member under the insurance program shall be 
deducted and withheld from the insured member's pay for each 
month. 
"(2) An insured member who does not receive pay on a monthly 
basis shall pay the Secretary directly the premium amount 
applicable for the level of benefits for which the member is insured. 
"(b) ADVANCE PAY FOR PREMIUM.—^The Secretary concerned 
may advance to an insured member the amount equal to the first 
insurance premium payment due under this chapter. The advance 
may be paid out of appropriations for military pay. An advance 
to a member shall be collected from the member either by deducting 
and withholding the amount from basic pay payable for the member 
or by collecting it from the member directly. No disbursing or 
certifying officer shall be responsible for any loss resulting from 
an advance under this subsection. 
"(c) PREMIUMS TO BE DEPOSITED IN FUND.—Premium amounts 
deducted and withheld from the pay of insured members and pre-
mium amounts paid directly to the Secretary shall be credited 
monthly to the Fund. 
"§ 12528. Reserve Mobilization Income Insurance Fund 
"(a) ESTABLISHMENT.—^There is established on the books of the 
Treasury a fund to be known as the 'Reserve Mobilization Income 
Insurance Fund', which shall be administered by the Secretary 
of the Treasury. The Fund shall be used for the accumulation 
of funds in order to finance the liabilities of the insurance program 
on an actuarially sound basis. 
"(b) ASSETS OF FUND.—^There shall be deposited into the Fund 
the following: 
"(1) Premiums paid under section 12527 of this title. 
"(2) Any amount appropriated to the Fund. 
"(3) Any return on investment of the assets of the Fund. 
"(c) AVAILABILITY.—^Amounts in the Fund shall be available 
for paying insurance benefits under the insurance program. 
"(d) INVESTMENT OF ASSETS OF FUND.—The Secretary of the 
Treasury shall invest such portion of the Fund as is not in the 
judgment of the Secretary of Defense required to meet current 
liabilities. Such investments shall be in public debt securities with 
maturities suitable to the needs of the Fund, as determined by 
the Secretary of Defense, and bearing interest at rates determined 
by the Secretary of the Treasury, taking into consideration current 
market yields on outstanding marketable obligations of the United 
States of comparable maturities. The income on such investments 
shall be credited to the Fund. 
"(e) ANNUAL ACCOUNTING.—^At the beginning of each fiscal year, 
the Secretary, in consultation with the Board of Actuaries and 
the Secretary of the Treasury, shall determine the following: 
"(1) The projected amount of the premiums to be collected, 
investment earnings to be received, and any transfers or appro-
priations to be made for the Fund for that fiscal year. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 303 
"(2) The amount for that fiscal year of any cumulative 
unfunded liability (including any negative amount or any gain 
to the Fund) resulting from payments of benefits. 
"(3) The amount for that fiscal year (including any negative 
amount) of any cumulative actuarial gain or loss to the Fund. 
"§ 12529. Board of Actuaries 
"(a) ACTUARIAL RESPONSIBILITY.—The Board of Actuaries shall 
have the actuarial responsibility for the insurance program. 
"(b) VALUATIONS AND PREMIUM RECOMMENDATIONS.—The Board 
of Actuaries shall carry out periodic actuarial valuations of the 
benefits under the insurance program and determine a premium 
rate methodology for the Secretary to use in setting premium rates 
for the insurance program. The Board shall conduct the first valu-
ation and determine a premium rate methodology not later than 
six months after the insurance program is established. 
"(c) EFFECTS OF CHANGED BENEFITS.—If at the time of any 
actuarial valuation under subsection (b) there has been a change 
in benefits under the insurance program that has been made since 
the last such valuation and such change in benefits increases or 
decreases the present value of amounts payable from the Fund, 
the Board of Actuaries shall determine a premium rate methodol-
ogy, and recommend to the Secretary a premium schedule, for 
the liquidation of any liability (or actuarial gain to the Fund) 
resulting from such change and any previous such changes so 
that the present value of the sum of the scheduled premium pay-
ments (or reduction in payments that would otherwise be made) 
equals the cumulative increase (or decrease) in the present value 
of such benefits. 
"(d) ACTUARIAL GAINS OR LOSSES.—If at the time of any such 
valuation the Board of Actuaries determines that there has been 
an actuarial gain or loss to the Fund as a result of changes in 
actuarial assumptions since the last valuation or as a result of 
any differences, between actual and expected experience since the 
last valuation, the Board shall recommend to the Secretary a pre-
mium rate schedule for the amortization of the cumulative gain 
or loss to the Fund resulting from such changes in assumptions 
and any previous such changes in assumptions or from the dif-
ferences in actual and expected experience, respectively, through 
an increase or decrease in the payments that would otherwise 
be made to the Fund. 
"(e) INSUFFICIENT ASSETS.—If at any time liabilities of the 
Fund exceed assets of the Fund as a result of members of the 
Ready Reserve being ordered to active duty as described in section 
12521(2) of this title, and funds are unavailable to pay benefits 
completely, the Secretary shall request the President to submit 
to Congress a request for a special appropriation to cover the 
unfunded liability. If appropriations are not made to cover an 
unfunded liability in any fiscal year, the Secretary shall reduce 
the amount of the benefits paid under the insurance program to 
a total amount that does not exceed the assets of the Fund expected 
to accrue by the end of such fiscal year. Benefits that cannot 
be paid because of such a reduction shall be deferred and may 
be paid only after and to the extent that additional funds become 
available. 
"(f) DEFINITION OF PRESENT VALUE.—The Board of Actuaries 
shall define the term 'present value' for purposes of this subsection. 
110 STAT. 304 
PUBLIC LAW 104-106—FEB. 10, 1996 
"§ 12530. Payment of benefits 
"(a) COMMENCEMENT OF PAYMENT.—^An insured member who 
serves in excess of 30 days of covered service shall be paid the 
amount to which such member is entitled on a monthly basis 
beginning not later than one month after the 30th day of covered 
service. 
Regulations. 
"(b) METHOD OF PAYMENT.—The Secretary shall prescribe in 
the regulations the manner in which payments shall be made 
to the member or to a person designated in accordance with sub-
section (c). 
"(c) DESIGNATED RECIPIENTS.—(1) A member may designate 
in writing another person (including a spouse, parent, or other 
person with an insurable interest, as determined in accordance 
with the regulations prescribed by the Secretary) to receive pay-
ments of insurance benefits under the insurance program. 
"(2) A member may direct that payments of insurance benefits 
for a person designated under paragraph (1) be deposited with 
a bank or other financial institution to the credit of the designated 
person. 
"(d) RECIPIENTS IN EVENT OF DEATH OF INSURED MEMBER.— 
Any insurance payable under the insurance program on account 
of a deceased member's period of covered service shall be paid, 
upon the establishment of a valid claim, to the beneficiary or 
beneficiaries which the deceased member designated in writing. 
If no such designation has been made, the amount shall be payable 
in accordance with the laws of the State of the member's domicile. 
"§ 12531. Purchase of insurance 
"(a) PURCHASE AUTHORIZED.—^The Secretary may, instead of 
or in addition to underwriting the insurance program through the 
Fund, purchase from one or more insurance companies a policy 
or policies of group insurance in order to provide the benefits 
required under this chapter. The Secretary may waive any require-
ment for full and open competition in order to purchase an insurance 
policy under this subsection. 
"(b) ELIGIBLE INSURERS.—In order to be eligible to sell insur-
ance to the Secretary for purposes of subsection (a), an insurance 
company shall— 
"(1) be licensed to issue insurance in each of the 50 States 
and in the District of Columbia; and 
"(2) as of the most recent December 31 for which informa-
tion is available to the Secretary, have in effect at least one 
percent of the total amount of insurance that all such insurance 
companies have in effect in the United States. 
"(c) ADMINISTRATIVE PROVISIONS.—(1) An insurance company 
that issues a policy for purposes of subsection (a) shall establish 
an administrative office at a place and under a name designated 
by the Secretary. 
"(2) For the purposes of carrying out this chapter, the Secretary 
may use the facilities and services of any insurance company issuing 
any policy for purposes of subsection (a), may designate one such 
company as the representative of the other companies for such 
purposes, and may contract to pay a reasonable fee to the designated 
company for its services. 
"(d) REINSURANCE.—The Secretary shall arrange with each 
insurance company issuing any policy for purposes of subsection 
(a) to reinsure, under conditions approved by the Secretary, portions 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 305 
of the total amount of the insurance under such poHcy or poHcies 
with such other insurance companies (which meet quaHfying criteria 
prescribed by the Secretary) as may elect to participate in such 
reinsurance. 
"(e) TERMINATION.—The Secretary may at any time terminate 
any policy purchased under this section. 
"§ 12532. Termination for nonpayment of premiums; forfeit-
ure 
"(a) TERMINATION FOR NONPAYMENT.—^The coverage of a mem-
ber under the insurance program shall terminate without prior 
notice upon a failure of the member to make required monthly 
payments of premiums for two consecutive months. The Secretary 
may provide in the regulations for reinstatement of insurance cov-
erage terminated under this subsection. 
"(b) FORFEITURE.—^Any person convicted of mutiny, treason, 
spying, or desertion, or who refuses to perform service in the armed 
forces or refuses to wear the uniform of any of the armed forces 
shall forfeit all rights to insurance under this chapter.". 
(2) The tables of chapters at the beginning of subtitle E, and 
at the beginning of part II of subtitle E, of title 10, United States 
Code, are amended by inserting after the item relating to chapter 
1213 the following new item: 
"1214. Ready Reserve Mobilization Income Insurance 
12521". 
(b) EFFECTIVE DATE.—The insurance program provided for in Federal Register, 
chapter 1214 of title 10, United States Code, as added by subsection ^^^}i^^^^^^, 
(a), and the requirement for deductions and contributions for that 
program shall take effect on September 30, 1996, or on any earlier 
date declared by the Secretary and published in the Federal Reg-
ister. 
SEC. 513. MILITARY TECHNICIAN FULL-TIME SUPPORT PROGRAM FOR 
ARMY AND AIR FORCE RESERVE COMPONENTS. 
(a) 
REQUIREMENT 
OF ANNUAL 
AUTHORIZATION OF END 
STRENGTH.—(1) Section 115 of title 10, United States Code, is 
amended by adding at the end the following new subsection: 
"(g) Congress shall authorize for each fiscal year the end 
strength for military technicians for each reserve component of 
the Army and Air Force. Funds available to the Department of 
Defense for any fiscal year may not be used for the pay of a 
military technician during that fiscal year unless the technician 
fills a position that is within the number of such positions author-
ized by law for that fiscal year for the reserve component of that 
technician. This subsection applies without regard to section 129 
of this title.". 
(2) The amendment made by paragraph (1) does not apply 
10 USC 115 note, 
with respect to fiscal year 1995. 
(b) AUTHORIZATION FOR FISCAL YEARS 1996 AND 1997.—For 
iouscii5note. 
each of fiscal years 1996 and 1997, the minimum number of military 
technicians, as of the last day of that fiscal year, for the Army 
and the Air Force (notwithstanding section 129 of title 10, United 
States Code) shall be the following: 
(1) Army National Guard, 25,500. 
(2) Army Reserve, 6,630. 
(3) Air National Guard, 22,906. 
(4) Air Force Reserve, 9,802. 
10 u s e 12521 
note. 
110 STAT. 306 
PUBLIC LAW 104-106—FEB. 10, 1996 
(c) ADMINISTRATION OF MILITARY TECHNICIAN PROGRAM.—(1) 
Chapter 1007 of title 10, United States Code, is amended by adding 
at the end the following new section: 
"§ 10216. Military technicians 
"(a) PRIORITY FOR MANAGEMENT OF MILITARY TECHNICIANS.— 
(1) As a basis for making the annual request to Congress pursuant 
to section 115 of this title for authorization of end strengths for 
military technicians of the Army and Air Force reserve components, 
the Secretary of Defense shall give priority to supporting authoriza-
tions for dual status military technicians in the following high-
priority units and organizations: 
"(A) Units of the Selected Reserve that are scheduled to 
deploy no later than 90 days after mobilization. 
"(B) Units of the Selected Reserve that are or will deploy 
to relieve active duty peacetime operations tempo. 
"(C) Those organizations with the primary mission of 
providing direct support surface and aviation maintenance for 
the reserve components of the Army and Air Force, to the 
extent that the military technicians in such units would 
mobilize and deploy in a skill that is compatible with their 
civilian position skill. 
"(2) For each fiscal year, the Secretary of Defense shall, for 
the high-priority units and organizations referred to in paragraph 
(1), seek to achieve a programmed manning level for military techni-
cians that is not less than 90 percent of the programmed manpower 
structure for those units and organizations for military technicians 
for that fiscal year. 
"(3) Military technician authorizations and personnel in high-
priority units and organizations specified in paragraph (1) shall 
be exempt from any requirement (imposed by law or otherwise) 
for reductions in Department of Defense civilian personnel and 
shall only be reduced as part of military force structure reductions. 
"(b) DUAL-STATUS REQUIREMENT.—The Secretary of Defense 
shall require the Secretary of the Army and the Secretary of the 
Air Force to establish as a condition of employment for each individ-
ual who is hired after the date of the enactment of this section 
as a military technician that the individual maintain membership 
in the Selected Reserve (so as to be a so-called 'dual-status' techni-
cian) and shall require that the civilian and military position skill 
requirements of dual-status military technicians be compatible. No 
Department of Defense funds may be spent for compensation for 
any military technician hired after the date of the enactment of 
this section who is not a member of the Selected Reserve, except 
that compensation may be paid for up to six months following 
loss of membership in the Selected Reserve if such loss of member-
ship was not due to the failure to meet military standards.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"10216. Military technicians.". 
(d) REVIEW OF RESERVE COMPONENT MANAGEMENT HEAD-
QUARTERS.—(1) The Secretary of Defense shall, within six months 
after the date of the enactment of this Act, undertake steps to 
reduce, consolidate, and streamline management headquarters oper-
ations of the reserve components. As part of those steps, the Sec-
retary shall identify those military technicians positions in such 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 307 
headquarters operations that are excess to the requirements of 
those headquarters. 
(2) Of the military technicians positions that are identified 
under paragraph (1), the Secretary shall reallocate up to 95 percent 
of the annual funding required to support those positions for the 
purpose of creating new positions or filling existing positions in 
the high-priority units and activities specified in section 10216(a) 
of title 10, United States Code, as added by subsection (c). 
(e) ANNUAL DEFENSE MANPOWER REQUIREMENTS REPORT.—Sec-
tion 115a of title 10, United States Code, is amended by adding 
at the end the following new subsection: 
"(h) In each such report, the Secretary shall include a separate 
report on the Army and Air Force military technician programs. 
The report shall include a presentation, shown by reserve compo-
nent and shown both as of the end of the preceding fiscal year 
and for the next fiscal year, of the following: 
"(1) The number of military technicians required to be 
employed (as specified in accordance with Department of 
Defense procedures), the number authorized to be employed 
under Department of Defense personnel procedures, and the 
number actually employed. 
"(2) Within each of the numbers under paragraph (1)— 
"(A) the number applicable to a reserve component 
management headquarter organization; and 
"(B) the number applicable to high-priority units and 
organizations (as specified in section 10216(a) of this title). 
"(3) Within each of the numbers under paragraph (1), the 
numbers of military technicians who are not themselves mem-
bers of a reserve component (so-called 'single-status' techni-
cians), with a further display of such numbers as specified 
in paragraph (2).". 
SEC. 514. REVISIONS TO ARMY GUARD COMBAT REFORM INITIATIVE 
TO INCLUDE ARMY RESERVE UNDER CERTAIN PROVISIONS 
AND MAKE CERTAIN REVISIONS. 
(a) PRIOR ACTIVE DUTY PERSONNEL.—Section 1111 of the Army 
National Guard Combat Readiness Reform Act of 1992 (title XI 
of Public Law 102-484) is amended— 
lo USC 10105 
(1) in the section heading, by striking out the first three note. 
words; 
(2) by striking out subsections (a) and (b) and inserting 
in lieu thereof the following: 
"(a) ADDITIONAL PRIOR ACTIVE DUTY OFFICERS.—The Secretary 
of the Army shall increase the number of qualified prior active-
duty officers in the Army National Guard by providing a program 
that permits the separation of officers on active duty with at least 
two, but less than three, years of active service upon condition 
that the officer is accepted for appointment in the Army National 
Guard. The Secretary shall have a goal of having not fewer than 
150 officers become members of the Army National Guard each 
year under this section. 
"(b) ADDITIONAL PRIOR ACTIVE DUTY ENLISTED MEMBERS.— 
The Secretary of the Army shall increase the number of qualified 
prior active-duty enlisted members in the Army National Guard 
through the use of enlistments as described in section 8020 of 
the Department of Defense Appropriations Act, 1994 (Public Law 
103-139). The Secretary shall enlist not fewer than 1,000 new 
110 STAT. 308 
PUBLIC LAW 104-10&—FEB. 10, 1996 
enlisted members each year under enlistments described in that 
section."; and 
(3) by striking out subsections (d) and (e). 
1
0 use 10105 
(b) SERVICE IN THE SELECTED RESERVE IN LIEU OF ACTIVE 
note. 
DUTY SERVICE FOR R O T C GRADUATES.—Section 1112(b) of such 
Act (106 Stat. 2537) is amended by striking out "National Guard" 
before the period at the end and inserting in lieu thereof "Selected 
Reserve". 
10 use 10105 
(c) REVIEW OF OFFICER PROMOTIONS.—Section 1113 of such 
note. 
Act (106 Stat. 2537) is amended— 
(1) in subsection (a), by striking out "National Guard" 
both places it appears and inserting in lieu thereof "Selected 
Reserve"; and 
(2) by striking out subsection (b) and inserting in lieu 
thereof the following: 
"(b) 
COVERAGE OF SELECTED 
RESERVE 
COMBAT AND EARLY 
DEPLOYING UNITS.—(1) Subsection (a) applies to officers in all units 
of the Selected Reserve that are designated as combat units or 
that are designated for deployment within 75 days of mobilization. 
Effective date. 
"(2) Subsection (a) shall take effect with respect to officers 
of the Army Reserve, and with respect to officers of the Army 
National Guard in units not subject to subsection (a) as of the 
date of the enactment of the National Defense Authorization Act 
for Fiscal Year 1996, at the end of the 90-day period beginning 
on such date of enactment.". 
10 use 10105 
(d) INITLA.L ENTRY TRAINING AND NONDEPLOYABLE 
PERSON-
note. 
NEL.—Section 1115 of such Act (106 Stat. 2538) is amended— 
(1) in subsections (a) and (b), by striking out "National 
Guard" each place it appears and inserting in lieu thereof 
"Selected Reserve"; and 
(2) in subsection (c)— 
(A) by striking out "a member of the Army National 
Guard enters the National Guard" and inserting in lieu 
thereof "a member of the Army Selected Reserve enters 
the Army Selected Reserve"; and 
(B) by striking out "from the Army National Guard". 
10 use 10105 
(e) 
ACCOUNTING 
OF 
MEMBERS 
W H O 
FAIL 
PHYSICAL 
note. 
DEPLOYABILITY STANDARDS.—Section 1116 of such Act (106 Stat. 
2539) is amended by striking out "National Guard" each place 
it appears and inserting in lieu thereof "Selected Reserve". 
(f) U S E O F COMBAT SIMULATORS.—Section 1120 of such Act 
(106 Stat. 2539) is amended by inserting "and the Army Reserve" 
before the period at the end. 
SEC. 515. ACTIVE DUTY ASSOCIATE UNIT RESPONSIBILITY. 
10 use 10105 
(a) ASSOCIATE UNITS.—Subsection (a) of section 1131 of the 
note. 
National Defense Authorization Act for Fiscal Year 1993 (Public 
Law 102-484; 106 Stat. 2540) is amended to read as follows: 
"(a) ASSOCL^TE UNITS.—^The Secretary of the Army shall 
require— 
"(1) that each ground combat maneuver brigade of the 
Army National Guard that (as determined by the Secretary) 
is essential for the execution of the National Military Strategy 
be associated with an active-duty combat unit; and 
"(2) that combat support and combat service support units 
of the Army Selected Reserve that (as determined by the Sec-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 309 
retary) are essential for the execution of the National Military 
Strategy be associated with active-duty units.", 
(b) RESPONSIBILITIES.—Subsection (b) of such section is 
amended— 
(1) by striking out "National Guard combat unit" in the 
matter preceding paragraph (1) and inserting in lieu thereof 
"National Guard unit or Army Selected Reserve unit that (as 
determined by the Secretary under subsection (a)) is essential 
for the execution of the National Military Strategy"; and 
(2) by striking out "of the National Guard unit" in para-
graphs (1), (2), (3), and (4) and inserting in lieu thereof "of 
that unit". 
SEC. 516. LEAVE 
FOR 
MEMBERS 
OF 
RESERVE 
COMPONENTS 
PERFORMING PUBLIC SAFETY DUTY. 
(a) ELECTION OF LEAVE TO BE CHARGED.—Subsection (b) of 
section 6323 of title 5, United States Code, is amended by adding 
at the end the following: "Upon the request of an employee, the 
period for which an employee is absent to perform service described 
in paragraph (2) may be charged to the employee's accrued annual 
leave or to compensatory time available to the employee instead 
of being charged as leave to which the employee is entitled under 
this subsection. The period of absence may not be charged to sick 
leave.". 
(b) PAY FOR PERIOD OF ABSENCE.—Section 5519 of such title 
is amended by striking out "entitled to leave" and inserting in 
lieu thereof "granted military leave". 
SEC. 517. DEPARTMENT OF DEFENSE 
FUNDING FOR NATIONAL 
GUARD PARTICIPATION IN JOINT DISASTER AND EMER-
GENCY ASSISTANCE EXERCISES. 
Section 503(a) of title 32, United States Code, is amended— 
(1) by inserting "(1)" after "(a)"; and 
(2) by adding at the end the following: 
"(2) Paragraph (1) includes authority to provide for participation 
of the National Guard in conjunction with the Army or the Air 
Force, or both, in joint exercises for instruction to prepare the 
National Guard for response to civil emergencies and disasters.". 
Subtitle C—Decorations and Awards 
SEC. 521. AWARD OF PURPLE HEART TO PERSONS WOUNDED WHILE 
10 USC 1129 
HELD AS PRISONERS OF WAR BEFORE APRIL 25, 1962. 
note. 
(a) AWARD OF PURPLE HEART.—For purposes of the award 
of the Purple Heart, the Secretary concerned (as defined in section 
101 of title 10, United States Code) shall treat a former prisoner 
of war who was wounded before April 25, 1962, while held as 
a prisoner of war (or- while being taken captive) in the same manner 
as a former prisoner of war who is wounded on or after that 
date while held as a prisoner of war (or while being taken captive). 
(b) STANDARDS FOR AWARD.—^An award of the Purple Heart 
under subsection (a) shall be made in accordance with the standards 
in effect on the date of the enactment of this Act for the award 
of the Purple Heart to persons wounded on or after April 25, 
1962. 
(c) ELIGIBLE FORMER PRISONERS OF WAR.—^A person shall be 
considered to be a former prisoner of war for purposes of this 
110 STAT. 310 
PUBLIC LAW 104-106—FEB. 10, 1996 
section if the person is eligible for the prisoner-of-war medal under 
section 1128 of title 10, United States Code. 
10 use 1130 
SEC. 522. AUTHORITY TO AWARD DECORATIONS RECOGNIZING ACTS 
note. 
OF VALOR PERFORMED IN COMBAT DURING THE VIETNAM 
CONFLICT. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The la Drang Valley (Pleiku) campaign, carried out 
by the Armed Forces in the la Drang Valley of Vietnam from 
October 23, 1965, to November 26, 1965, is illustrative of the 
many battles during the Vietnam conflict which pitted forces 
of the United States against North Vietnamese Army regulars 
and Viet Cong in vicious fighting. 
(2) Accounts of those battles that have been published 
since the end of that conflict authoritatively document numer-
ous and repeated acts of extraordinary heroism, sacrifice, and 
bravery on the part of members of the Armed Forces, many 
of which have never been officially recognized. 
(3) In some of those battles. United States military units 
suffered substantial losses, with some units sustaining casual-
ties in excess of 50 percent. 
(4) The incidence of heavy casualties throughout the Viet-
nam conflict inhibited the timely collection of comprehensive 
and detailed information to support recommendations for 
awards recognizing acts of heroism, sacrifice, and bravery. 
(5) Subsequent requests to the Secretaries of the military 
departments for review of award recommendations for such 
acts have been denied because of restrictions in law and regula-
tions that require timely filing of such recommendations and 
documented justification. 
(6) Acts of heroism, sacrifice, and bravery performed in 
combat by members of the Armed Forces deserve appropriate 
and timely recognition by the people of the United States. 
(7) It is appropriate to recognize acts of heroism, sacrifice, 
or bravery that are belatedly, but properly, documented by 
persons who witnessed those acts. 
(b) WAIVER OF TIME LIMITATIONS FOR RECOMMENDATIONS FOR 
AWARDS.—(1) Any decoration covered by paragraph (2) may be 
awarded, without regard to any time limit imposed by law or 
regulation for a recommendation for such award to any person 
for actions by that person in the Southeast Asia theater of oper-
ations while serving on active duty during the Vietnam era. The 
waiver of time limitations under this paragraph applies only in 
the case of awards for acts of valor for which a request for consider-
ation is submitted under subsection (c). 
(2) Paragraph (1) applies to any decoration (including any 
device in lieu of a decoration) that, during or after the Vietnam 
era and before the date of the enactment of this Act, was authorized 
by law or under regulations of the Department of Defense or the 
military department concerned to be awarded to members of the 
Armed Forces for acts of valor. 
(c) REVIEW OF REQUESTS FOR CONSIDERATION OF AWARDS.— 
(1) The Secretary of each military department shall review each 
request for consideration of award of a decoration described in 
subsection (b) that are received by the Secretary during the one-
year period beginning on the date of enactment of this Act. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 311 
(2) The Secretaries shall begin the review within 30 days after 
the date of the enactment of this Act and shall complete the review 
of each request for consideration not later than one year after 
the date on which the request is received. 
(3) The Secretary may use the same process for carrying out 
the review as the Secretary uses for reviewing other recommenda-
tions for award of decorations to members of the Armed Forces 
under the Secretary's jurisdiction for valorous acts. 
(d) REPORT.—(1) Upon completing the review of each such 
request under subsection (c), the Secretary shall submit a report 
on the review to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representa-
tives. 
(2) The report shall include, with respect to each request for 
consideration received, the following information: 
(A) A summary of the request for consideration. 
(B) The findings resulting from the review. 
(C) The final action taken on the request for consideration. 
(e) DEFINITION.—For purposes of this section: 
(1) The term "Vietnam era" has the meaning given that 
term in section 101 of title 38, United States Code. 
(2) The term "active duty" has the meaning given that 
term in section 101 of title 10, United States Code. 
SEC. 523. MILITARY INTELLIGENCE PERSONNEL PREVENTED BY 
10 USC 1130 
SECRECY FROM BEING CONSIDERED FOR DECORATIONS ^ote. 
AND AWARDS. 
(a) WAIVER ON RESTRICTIONS OF AWARDS.—(1) Any decoration 
covered by paragraph (2) may be awarded, without regard to any 
time limit imposed by law or regulation for a recommendation 
for such award, to any person for an act, achievement, or service 
that the person performed in carrying out military intelligence 
duties during the period beginning on January 1, 1940, and ending 
on December 31, 1990. 
(2) Paragraph (1) applies to any decoration (including any 
device in lieu of a decoration) that, during or after the period 
described in paragraph (1) and before the date of the enactment 
of this Act, was authorized by law or under the regulations of 
the Department of Defense or the military department concerned 
to be awarded to a person for an act, achievement, or service 
performed by that person while serving on active duty. 
(b) REVIEW OF REQUESTS FOR CONSIDERATION OF AWARDS.— 
(1) The Secretary of each military department shall review each 
request for consideration of award of a decoration described in 
subsection (a) that is received by the Secretary during the one-
year period beginning on the date of the enactment of this Act. 
(2) The Secretaries shall begin the review within 30 days after 
the date of the enactment of this Act and shall complete the review 
of each request for consideration not later than one year after 
the date on which the request is received. 
(3) The Secretary may use the same process for carrying out 
the review as the Secretary uses for reviewing other recommenda-
tions for awarding decorations to members of the Armed Forces 
under the Secretary's jurisdiction for acts, achievements, or service. 
(c) REPORT.—(1) Upon completing the review of each such 
request under subsection (b), the Secretary shall submit a report 
on the review to the Committee on Armed Services of the Senate 
110 STAT. 312 
PUBLIC LAW 104-106—FEB. 10, 1996 
and the Committee on National Security of the House of Representa-
tives. 
(2) The report shall include, with respect to each request for 
consideration reviewed, the following information: 
(A) A summary of the request for consideration. 
(B) The findings resulting from the review. 
(C) The final action taken on the request for consideration. 
(D) Administrative or legislative recommendations to 
improve award procedures with respect to military intelligence 
personnel. 
(d) DEFINITION.—For purposes of this section, the term "active 
duty" has the meaning given such term in section 101 of title 
10, United States Code. 
Records. 
SEC. 524. REVffiW REGARDING UPGRADING OF DISTINGUISHED-SERV-
10 u s e 3741 
ICE CROSSES AND NAVY CROSSES AWARDED TO ASIAN-
^^^^- 
AMERICANS AND NATIVE AMERICAN PACIFIC ISLANDERS 
FOR WORLD WAR II SERVICE. 
(a) REVIEW REQUIRED.—(1) The Secretary of the Army shall 
review the records relating to each award of the Distinguished-
Service Cross, and the Secretary of the Navy shall review the 
records relating to each award of the Navy Cross, that was awarded 
to an Asian-American or a Native American Pacific Islander with 
respect to service as a member of the Armed Forces during World 
War II. The purpose of the review shall be to determine whether 
any such award should be upgraded to the Medal of Honor. 
(2) If the Secretary concerned determines, based upon the 
review under paragraph (1), that such an upgrade is appropriate 
in the case of any person, the Secretary shall submit to the Presi-
dent a recommendation that the President award the Medal of 
Honor to that person. 
(b) WAIVER OF TIME LIMITATIONS.—A Medal of Honor may 
be awarded to a person referred to in subsection (a) in accordance 
with a recommendation of the Secretary concerned under that sub-
section without regard to— 
(1) section 3744, 6248, or 8744 of title 10, United States 
Code, as applicable; and 
(2) any regulation or other administrative restriction on— 
(A) the time for awarding the Medal of Honor; or 
(B) the awarding of the Medal of Honor for service 
for which a Distinguished-Service Cross or Navy Cross 
has been awarded. 
(c) DEFINITION.—For purposes of this section, the term "Native 
American Pacific Islander" means a Native Hawaiian and any other 
Native American Pacific Islander within the meaning of the Native 
American Programs Act of 1974 (42 U.S.C. 2991 et seq.). 
10 u s e 1130 
SEC. 525. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL 
note. 
BASED UPON SERVICE IN EL SALVADOR. 
(a) IN GENERAL.—For the purpose of determining eligibility 
of members and former members of the Armed Forces for the 
Armed Forces Expeditionary Medal, the country of El Salvador 
during the period beginning on January 1, 1981 and ending on 
February 1, 1992, shall be treated as having been designated as 
an area and a period of time in which members of the Armed 
Forces participated in operations in significant numbers and other-
wise met the general requirements for the award of that medal. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 313 
(b) INDIVIDUAL DETERMINATION.—The Secretary of the mihtary 
department concerned shall determine whether individual members 
or former members of the Armed Forces who served in El Salvador 
during the period beginning on January 1, 1981 and ending on 
February 1, 1992 meet the individual service requirements for 
award of the Armed Forces Expeditionary Medal as established 
in applicable regulations. Such determinations shall be made as 
expeditiously as possible after the date of the enactment of this 
Act. 
SEC. 526. PROCEDURE FOR CONSIDERATION OF MILITARY DECORA-
TIONS NOT PREVIOUSLY SUBMITTED IN TIMELY FASHION. 
(a) IN GENERAL.—Chapter 57 of title 10, United States Code, 
is amended by adding at the end the following new section: 
"§1130. Consideration of proposals for decorations not pre-
viously submitted in timely fashion: procedures 
for review and recommendation 
"(a) Upon request of a Member of Congress, the Secretary 
concerned shall review a proposal for the award or presentation 
of a decoration (or the upgrading of a decoration), either for an 
individual or a unit, that is not otherwise authorized to be presented 
or awarded due to limitations established by law or policy for 
timely submission of a recommendation for such award or presen-
tation. Based upon such review, the Secretary shall make a deter-
mination as to the merits of approving the award or presentation 
of the decoration and the other determinations necessary to comply 
with subsection (b). 
"(b) Upon making a determination under subsection (a) as 
to the merits of approving the award or presentation of the decora-
tion, the Secretary concerned shall submit to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives and to the requesting 
member of Congress notice in writing of one of the following: 
"(1) The award or presentation of the decoration does not 
warrant approval on the merits. 
"(2) The award or presentation of the decoration warrants 
approval and a waiver by law of time restrictions prescribed 
by law is recommended. 
"(3) The award or presentation of the decoration warrants 
approval on the merits and has been approved as an exception 
to policy. 
"(4) The award or presentation of the decoration warrants 
approval on the merits, but a waiver of the time restrictions 
prescribed by law or policy is not recommended. 
A notice under paragraph (1) or (4) shall be accompanied by a 
statement of the reasons for the decision of the Secretary. 
"(c) Determinations under this section regarding the award 
or presentation of a decoration shall be made in accordance with 
the same procedures that apply to the approval or disapproval 
of the award or presentation of a decoration when a recommendation 
for such award or presentation is submitted in a timely manner 
as prescribed by law or regulation. 
"(d) In this section: 
"(1) The term 'Member of Congress' means— 
"(A) a Senator; or 
110 STAT. 314 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(B) a Representative in, or a Delegate or Resident 
Commissioner to. Congress. 
"(2) The term 'decoration' means any decoration or award 
that may be presented or awarded to a member or unit of 
the armed forces.". 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following 
new item: 
"1130. Consideration of proposals for decorations not previously submitted in timely 
fashion: procedures for review and recommendation.". 
Subtitle D—Officer Education Programs 
PART I—SERVICE ACADEMIES 
SEC. 531. REVISION OF SERVICE OBLIGATION FOR GRADUATES OF 
THE SERVICE ACADEMIES. 
(a) MILITARY ACADEMY.—Section 4348(a)(2)(B) of title 10, 
United States Code, is amended by striking out "six years" and 
inserting in lieu thereof "five years". 
(b) NAVAL ACADEMY.—Section 6959(a)(2)(B) of such title is 
amended by striking out "six years" and inserting in lieu thereof 
"five years". 
(c) AIR FORCE ACADEMY.—Section 9348(a)(2)(B) of such title 
is amended by striking out "six years" and inserting in lieu thereof 
"five years". 
(d) REQUIREMENT FOR REVIEW AND REPORT.—(1) The Secretary 
of Defense shall review the effects that each of various periods 
of obligated active duty service for graduates of the United States 
Military Academy, the United States Naval Academy, and the 
United States Air Force Academy would have on the number and 
quality of the eligible and qualified applicants seeking appointment 
to such academies. 
(2) Not later than April 1, 1996, the Secretary shall submit 
to the Committee on Armed Services of the Senate and the Commit-
tee on National Security of the House of Representatives a report 
on the Secretary's findings under the review, together with any 
recommended legislation regarding the minimum periods of obli-
gated active duty service for graduates of the United States Military 
Academy, the United States Naval Academy, and the United States 
Air Force Academy. 
10 use 4348 
(e) APPLICABILITY.—^The amendments made by this section 
note. 
apply to persons first admitted to the United States Military Acad-
emy, United States Naval Academy, and United States Air Force 
Academy after December 31, 1991. 
SEC. 532. NOMINATIONS TO SERVICE ACADEMIES FROM COMMON-
WEALTH OF THE NORTHERN MARIANAS ISLANDS. 
(a) MILITARY ACADEMY.—Section 4342(a) of title 10, United 
States Code, is amended by inserting after paragraph (9) the follow-
ing new paragraph: 
"(10) One cadet from the Commonwealth of the Northern 
Marianas Islands, nominated by the resident representative 
from the commonwealth.". 
(b) NAVAL ACADEMY.—Section 6954(a) of title 10, United States 
Code, is amended by inserting after paragraph (9) the following 
new paragraph: 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 315 
"(10) One from the Commonwealth of the Northern Mari-
anas Islands, nominated by the resident representative from 
the commonwealth.". 
(c) AIR FORCE ACADEMY.—Section 9342(a) of title 10, United 
States Code, is amended by inserting after paragraph (9) the follow-
ing new paragraph: 
"(10) One cadet from the Commonwealth of the Northern 
Marianas Islands, nominated by the resident representative 
from the commonwealth.". 
SEC. 533. REPEAL OF REQUIREMENT FOR ATHLETIC DIRECTOR AND 
NONAPPROPRIATED FUND ACCOUNT FOR THE ATHLETICS 
PROGRAMS AT THE SERVICE ACADEMIES. 
(a) UNITED STATES MILITARY ACADEMY.—(1) Section 4357 of 
title 10, United States Code, is repealed. 
(2) The table of sections at the beginning of chapter 403 of 
such title is amended by striking out the item relating to section 
4357. 
(b) UNITED STATES NAVAL ACADEMY.—Section 556 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 108 Stat. 2774) is amended by striking out sub-
sections (b) and (e). 
10 USC 6975, 
(c) UNITED STATES AIR FORCE ACADEMY.—(1) Section 9356 of 6975 note, 
title 10, United States Code, is repealed. 
(2) The table of sections at the beginning of chapter 903 of 
such title is amended by striking out the item relating to section 
9356. 
SEC. 534. REPEAL OF REQUIREMENT FOR PROGRAM TO TEST 
PRIVATIZATION OF SERVICE ACADEMY PREPARATORY 
SCHOOLS. 
Section 536 of the National Defense Authorization Act for Fiscal 
Year 1994 (Pubhc Law 103-160; 10 U.S.C. 4331 note) is repealed. 
PART II—RESERVE OFFICER TRAINING CORPS 
SEC. 541. ROTC ACCESS TO CAMPUSES. 
(a) IN GENERAL.—Chapter 49 of title 10, United States Code, 
is amended by adding at the end the following new section: 
"§ 983. Institutions of higher education that prohibit Senior 
ROTC units: denial of Department of Defense 
grants and contracts 
"(a) DENIAL OF DEPARTMENT OF DEFENSE GRANTS AND CON-
TRACTS.—(1) No funds appropriated or otherwise available to the 
Department of Defense may be made obligated by contract or by 
grant (including a grant of funds to be available for student aid) 
to any institution of higher education that, as determined by the 
Secretary of Defense, has an anti-ROTC policy and at which, as 
determined by the Secretary, the Secretary would otherwise main-
tain or seek to establish a unit of the Senior Reserve Officer 
Training Corps or at which the Secretary would otherwise enroll 
or seek to enroll students for participation in a unit of the Senior 
Reserve Officer Training Corps at another nearby institution of 
higher education. 
"(2) In the case of an institution of higher education that 
is ineligible for Department of Defense grants and contracts by 
reason of paragraph (1), the prohibition under that paragraph shall 
110 STAT. 316 
PUBLIC LAW 104-106—FEB. 10, 1996 
cease to apply to that institution upon a determination by the 
Secretary that the institution no longer has an anti-ROTC policy. 
"(b) NOTICE OF DETERMINATION.—Whenever the 
Secretary 
makes a determination under subsection (a) that an institution 
has an anti-ROTC policy, or that an institution previously deter-
mined to have an anti-ROTC policy no longer has such a policy, 
the Secretary— 
"(1) shall transmit notice of that determination to the Sec-
retary of Education and to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives; and 
Federal Register, 
"(2) shall publish in the Federal Register notice of that 
publication. 
determination and of the effect of that determination under 
subsection (a)(1) on the eligibility of that institution for Depart-
ment of Defense grants and contracts. 
"(c) SEMIANNUAL NOTICE IN FEDERAL REGISTER.—The Secretary 
shall publish in the Federal Register once every six months a 
list of each institution of higher education that is currently ineligible 
for Department of Defense grants and contracts by reason of a 
determination of the Secretary under subsection (a). 
"(d) ANTI-ROTC POLICY.—In this section, the term 'anti-ROTC 
policy' means a policy or practice of an institution of higher edu-
cation that— 
"(1) prohibits, or in effect prevents, the Secretary of Defense 
from maintaining or establishing a unit of the Senior Reserve 
Officer Training Corps at that institution, or 
"(2) prohibits, or in effect prevents, a student at that 
institution from enrolling in a unit of the Senior Reserve Officer 
Training Corps at another institution of higher education.". 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following 
new item: 
"983. Institutions of higher education that prohibit Senior ROTC units: denial of De-
partment of Defense grants and contracts.". 
SEC. 542. ROTC SCHOLARSfflPS FOR THE NATIONAL GUARD. 
(a) CLARIFICATION OF RESTRICTION ON ACTIVE DUTY.—Para-
graph (2) of section 2107(h) of title 10, United States Code, is 
amended by inserting "full-time" before "active duty" in the second 
sentence. 
(b) REDESIGNATION OF ROTC SCHOLARSHIPS.—Such paragraph 
is further amended by inserting after the first sentence the following 
new sentence: "A cadet designated under this paragraph who, hav-
ing initially contracted for service as provided in subsection (b)(5)(A) 
and having received financial assistance for two years under an 
award providing for four years of financial assistance under this 
section, modifies such contract with the consent of the Secretary 
of the Army to provide for service as described in subsection 
(b)(5)(B), may be counted, for the year in which the contract is 
modified, toward the number of appointments required under the 
preceding sentence for financial assistance awarded for a period 
of four years.". 
SEC. 543. DELAY IN REORGANIZATION OF ARMY ROTC REGIONAL 
HEADQUARTERS STRUCTURE. 
(a) DELAY.—The Secretary of the Army may not take any 
action to reorganize the regional headquarters and basic camp 
structure of the Reserve Officers Training Corps program of the 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 317 
Army until six months after the date on which the report required 
by subsection (d) is submitted. 
(b) COST-BENEFIT ANALYSIS.—The Secretary of the Army shall 
conduct a comparative cost-benefit analysis of various options for 
the reorganization of the regional headquarters and basic camp 
structure of the Army ROTC program. As part of such analysis, 
the Secretary shall measure each reorganization option considered 
against a common set of criteria. 
(c) SELECTION OF REORGANIZATION OPTION FOR IMPLEMENTA-
TION.—Based on the findings resulting from the cost-benefit analysis 
under subsection (b) and such other factors as the Secretary consid-
ers appropriate, the Secretary shall select one reorganization option 
for implementation. The Secretary may select an option for 
implementation only if the Secretary finds that the cost-benefit 
analysis and other factors considered clearly demonstrate that such 
option, better than any other option considered— 
(1) provides the structure to meet projected mission require-
ments; 
(2) achieves the most significant personnel and cost savings; 
(3) uses existing basic and advanced camp facilities to 
the maximum extent possible; 
(4) minimizes additional military construction costs; and 
(5) makes maximum use of the reserve components to 
support basic and advanced camp operations, thereby minimiz-
ing the effect of those operations on active duty units. 
(d) REPORT.—Not later than 60 days after the date of the 
enactment of this Act, the Secretary of the Army shall submit 
to the Committee on Armed Services of the Senate and the Commit-
tee on National Security of the House of Representatives a report 
describing the reorganization option selected under subsection (c). 
The report shall include the results of the cost-benefit analysis 
under subsection (b) and a detailed rationale for the reorganization 
option selected. 
SEC. 544. DURATION OF FIELD TRAINING OR PRACTICE CRUISE 
REQUIRED UNDER THE SENIOR RESERVE OFFICERS' 
TRAINING CORPS PROGRAM. 
Section 2104(b)(6)(A)(ii) of title 10, United States Code, is 
amended by striking out "not less than six weeks' duration" and 
inserting in lieu thereof "a duration". 
SEC. 545. ACTIVE DUTY OFFICERS DETAILED TO ROTC DUTY AT SEN-
IOR MILITARY COLLEGES TO SERVE AS COMMANDANT AND 
ASSISTANT COMMANDANT OF CADETS AND AS TACTICAL 
OFFICERS. 
(a) IN GENERAL.—Chapter 103 of title 10, United States Code, 
is amended by adding at the end the following new section: 
"§ 2111a. Detail of officers to senior military colleges 
"(a) DETAIL OF OFFICERS TO SERVE AS COMMANDANT OR ASSIST-
ANT COMMANDANT OF CADETS.—(1) Upon the request of a senior 
military college, the Secretary of Defense may detail an officer 
on the active-duty list to serve as Commandant of Cadets at that 
college or (in the case of a college with an Assistant Commandant 
of Cadets) detail an officer on the active-duty list to serve as 
Assistant Commandant of Cadets at that college (but not both). 
"(2) In the case of an officer detailed as Commandant of Cadets, 
the officer may, upon the request of the college, be assigned from 
110 STAT. 318 
PUBLIC LAW 104-106—FEB. 10, 1996 
among the Professor of Military Science, the Professor of Naval 
Science (if any), and the Professor of Aerospace Science (if any) 
at that college or may be in addition to any other officer detailed 
to that college in support of the program. 
"(3) In the case of an officer detailed as Assistant Commandant 
of Cadets, the officer may, upon the request of the college, be 
assigned from among officers otherwise detailed to duty at that 
college in support of the program or may be in addition to any 
other officer detailed to that college in support of the program. 
"(b) DESIGNATION OF OFFICERS AS TACTICAL OFFICERS.—Upon 
the request of a senior military college, the Secretary of Defense 
may authorize officers (other than officers covered by subsection 
(a)) who are detailed to duty as instructors at that college to 
act simultaneously as tactical officers (with or without compensa-
tion) for the Corps of Cadets at that college. 
"(c) DETAIL OF OFFICERS.—^The Secretary of a military depart-
ment shall designate officers for detail to the program at a senior 
military college in accordance with criteria provided by the college. 
An officer may not be detailed to a senior military college without 
the approval of that college. 
"(d) SENIOR MILITARY COLLEGES.—The senior military colleges 
are the following: 
"(1) Texas A&M University. 
"(2) Norwich College. 
"(3) The Virginia Military Institute. 
"(4) The Citadel. 
"(5) Virginia Poljrtechnic Institute and State University. 
"(6) North Georgia College.". 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following 
new item: 
"2111a. Detail of officers to senior military colleges.". 
Subtitle E—Miscellaneous Reviews, 
Studies, and Reports 
10 u s e 113 note. 
SEC. 551. REPORT CONCERNING APPROPRIATE FORUM FOR JUDICIAL 
REVIEW OF DEPARTMENT OF DEFENSE PERSONNEL 
ACTIONS. 
(a) ESTABLISHMENT.—^The Secretary of Defense shall establish 
an advisory committee to consider issues relating to the appropriate 
forum for judicial review of Department of Defense administrative 
personnel actions. 
(b) MEMBERSHIP.—(1) The committee shall be composed of five 
members, who shall be appointed by the Secretary of Defense 
after consultation with the Attorney Gfeneral and the Chief Justice 
of the United States. 
(2) All members of the committee shall be appointed not later 
than 30 days after the date of the enactment of this Act. 
(c) DUTIES.—^The committee shall review, and provide findings 
and recommendations regarding, the following matters with respect 
to judicial review of administrative personnel actions of the Depart-
ment of Defense: 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 319 
(1) Whether the existing forum for such review through 
the United States district courts provides appropriate and ade-
quate review of such actions. 
(2) Whether jurisdiction to conduct judicial review of such 
actions should be established in a single court in order to 
provide a centralized review of such actions and, if so, in 
which court that jurisdiction should be vested. 
(d) REPORT.—(1) Not later than December 15, 1996, the commit-
tee shall submit to the Secretary of Defense a report setting forth 
its findings and recommendations, including its recommendations 
pursuant to subsection (c). 
(2) Not later than January 1, 1997, the Secretary of Defense, 
after consultation with the Attorney General, shall transmit the 
committee's report to Congress. The Secretary may include in the 
transmittal any comments on the report that the Secretary or 
the Attorney General consider appropriate. 
(e) TERMINATION OF COMMITTEE.—The committee shall termi-
nate 30 days after the date of the submission of its report to 
Congress under subsection (d)(2). 
SEC. 552. COMPTROLLER GENERAL REVIEW OF PROPOSED ARMY END 
10 USC 115 note. 
STRENGTH ALLOCATIONS. 
(a) IN GENERAL.—During fiscal years 1996 through 2001, the 
Comptroller General of the United States shall analyze the plans 
of the Secretary of the Army for the allocation of assigned active 
component end strengths for the Army through the requirements 
process known as Total Army Analysis 2003 and through any 
subsequent similar requirements process of the Army that is con-
ducted before 2002. The Comptroller General's analysis shall con-
sider whether the proposed active component end strengths and 
planned allocation of forces for that period will be sufficient to 
implement the national military strategy. In monitoring those plans, 
the Comptroller General shall determine the extent to which the 
Army will be able during that period— 
(1) to man fully the combat force based on the projected 
active component Army end strength for each of fiscal years 
1996 through 2001; 
(2) to meet the support requirements for the force and 
strategy specified in the report of the Bottom-Up Review, 
including requirements for operations other than war; and 
(3) to streamline further Army infrastructure in order to 
eliminate duplication and inefficiencies and replace active duty 
personnel in overhead positions, whenever practicable, with 
civilian or reserve personnel. 
(b) ACCESS TO DOCUMENTS, ETC.—The Secretary of the Army 
shall ensure that the Comptroller General is provided access, on 
a timely basis and in accordance with the needs of the Comptroller 
General, to all analyses, models, memoranda, reports, and other 
documents prepared or used in connection with the requirements 
process of the Army known as Total Army Analysis 2003 and 
any subsequent similar requirements process of the Army that 
is conducted before 2002. 
(c) ANNUAL REPORT.—Not later than March 1 of each year 
through 2002, the Comptroller General shall submit to Congress 
a report on the findings and conclusions of the Comptroller General 
under this section. 
110 STAT. 320 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 553. REPORT ON MANNING STATUS OF HIGHLY DEPLOYABLE 
SUPPORT UNITS. 
(a) REPORT.—Not later than September 30, 1996, the Secretary 
of Defense shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House 
of Representatives a report on the units of the Armed Forces under 
the Secretary's jurisdiction— 
(1) that (as determined by the Secretary of the military 
department concerned) are high-priority support units that 
would deploy early in a contingency operation or other crisis; 
and 
(2) that are, as a matter of policy, managed at less than 
100 percent of their authorized strengths. 
(b) MATTERS TO BE INCLUDED.—^The Secretary shall include 
in the report— 
(1) the number of such high-priority support units (shown 
by type of unit) that are so managed; 
(2) the level of manning within such high-priority support 
units; and 
(3) with respect to each such unit, either the justification 
for manning of less than 100 percent or the status of corrective 
action. 
SEC. 554. REVIEW OF SYSTEM FOR CORRECTION OF MILITARY 
RECORDS. 
(a) REVIEW OF PROCEDURES.—^The Secretary of Defense shall 
review the system and procedures for the correction of military 
records used by the Secretaries of the military departments in 
the exercise of authority under section 1552 of title 10, United 
States Code, in order to identify potential improvements that could 
be made in the process for correcting military records to ensure 
fairness, equity, and (consistent with appropriate service to 
applicants) maximum efficiency. The Secretary may not delegate 
responsibility for the review to an officer or official of a military 
department. 
(b) ISSUES REVIEWED.—In conducting the review, the Secretary 
shall consider (with respect to each Board for the Correction of 
Military Records) the following: 
(1) The composition of the board and of the support staff 
for the board. 
(2) Timeliness of final action. 
(3) Independence of deliberations by the civilian board. 
(4) The authority of the Secretary of the military depart-
ment concerned to modify the recommendations of the board. 
(5) Burden of proof and other evidentiary standards. 
(6) Alternative methods for correcting military records. 
(7) Whether the board should be consolidated with the 
Discharge Review Board of the military department. 
(c) REPORT.—Not later than April 1, 1996, the Secretary of 
Defense shall submit a report on the results of the Secretary's 
review under this section to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives. The report shall contain the recommenda-
tions of the Secretary for improving the process for correcting mili-
tary records in order to achieve the objectives referred to in 
subsection (a). 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 321 
SEC. 555. REPORT ON THE CONSISTENCY OF REPORTING OF FINGER-
PRINT CARDS AND FINAL DISPOSITION FORMS TO THE 
FEDERAL BUREAU OF INVESTIGATION. 
(a) REPORT.—The Secretary of Defense shall submit to Congress 
a report on the consistency with which fingerprint cards and final 
disposition forms, as described in Criminal Investigations Policy 
Memorandum 10 issued by the Defense Inspector General on March 
25, 1987, are reported by the Defense Criminal Investigative 
Organizations to the Federal Bureau of Investigation for inclusion 
in the Bureau's criminal history identification files. The report 
shall be prepared in consultation with the Director of the Federal 
Bureau of Investigation. 
(b) MATTERS TO B E INCLUDED.—In the report, the Secretary 
shall— 
(1) survey fingerprint cards and final disposition forms 
filled out in the past 24 months by each investigative organiza-
tion; 
(2) compare the fingerprint cards and final disposition 
forms filled out to all judicial and nonjudicial procedures initi-
ated as a result of actions taken by each investigative service 
in the past 24 months; 
(3) account for any discrepancies between the forms filled 
out and the judicial and nonjudicial procedures initiated; 
(4) compare the fingerprint cards and final disposition 
forms filled out with the information held by the Federal 
Bureau of Investigation criminal history identification files; 
(5) identify any weaknesses in the collection of fingerprint 
cards and final disposition forms and in the reporting of that 
information to the Federal Bureau of Investigation; and 
(6) determine whether or not other law enforcement activi-
ties of the military services collect and report such information 
or, if not, should collect and report such information. 
(c) SUBMISSION OF REPORT.—^The report shall be submitted 
not later than one year after the date of the enactment of this 
Act. 
(d) DEFINITION.—For the purposes of this section, the term 
"criminal history identification files", with respect to the Federal 
Bureau of Investigation, means the criminal history record system 
maintained by the Federal Bureau of Investigation based on finger-
print identification and any other method of positive identification. 
Subtitle F—Other Matters 
SEC. 561. EQUALIZATION OF ACCRUAL OF SERVICE CREDIT FOR OFFI-
CERS AND ENLISTED MEMBERS. 
(a) ENLISTED SERVICE CREDIT.—Section 972 of title 10, United 
States Code, is amended-— 
(1) by inserting "(a) ENLISTED MEMBERS REQUIRED To 
MAKE U P TIME LOST.—" before "An enlisted member"; 
(2) by striking out paragraphs (3) and (4) and inserting 
in lieu thereof the following: 
"(3) is confined by military or civilian authorities for more 
than one day in connection with a trial, whether before, during, 
or after the trial; or"; and 
(3) by redesignating paragraph (5) as paragraph (4). 
110 STAT. 322 
PUBLIC LAW 104-106—FEB. 10, 1996 
(b) OFFICER SERVICE CREDIT.—Such section is further amended 
by adding at the end the following: 
"(b) OFFICERS NOT ALLOWED SERVICE CREDIT FOR TIME LOST.— 
In the case of an officer of an armed force who after the date 
of the enactment of the National Defense Authorization Act for 
Fiscal Year 1996— 
"(1) deserts; 
"(2) is absent from his organization, station, or duty for 
more than one day without proper authority, as determined 
by competent authority; 
"(3) is confined by military or civilian authorities 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 determined by 
competent authority, to perform his duties because of intem-
perate use of drugs or alcoholic liquor, or because of disease 
or injury resulting from his misconduct; 
the period of such desertion, absence, confinement, or inability 
to perform duties may not be counted in computing, for any purpose 
other than basic pay under section 205 of title 37, the officer's 
length of service.". 
(c) CLERICAL AMENDMENTS.—(1) The heading of such section 
is amended to read as follows: 
"§ 972. Members: effect of time lost 
(2) The item relating to section 972 in the table of sections 
at the beginning of chapter 49 of such title is amended to read 
as follows: 
"972. Members: effect of time lost.". 
1
0 use 1405. 
(d) 
CONFORMING 
AMENDMENTS.—(1) 
Section 
1405(c) is 
amended— 
(A) by striking out "MADE UP.—Time" and inserting in 
lieu thereof "MADE U P OR EXCLUDED.—(1) Time"; 
(B) by striking out "section 972" and inserting in lieu 
thereof "section 972(a)"; 
(C) by inserting after "of this title" the following: ", or 
required to be made up by an enlisted member of the Navy, 
Marine Corps, or Coast Guard under that section with respect 
to a period of time after the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 1995,"; and 
(D) by adding at the end the following: 
"(2) Section 972(b) of this title excludes from computation of 
an officer's years of service for purposes of this section any time 
identified with respect to that officer under that section.". 
(2) Chapter 367 of such title is amended— 
(A) in section 3925(b), by striking out "section 972" and 
inserting in lieu thereof "section 972(a)"; and 
(B) by adding at the end of section 3926 the following 
new subsection: 
"(e) Section 972(b) of this title excludes from computation of 
an officer's years of service for purposes of this section any time 
identified with respect to that officer under that section.". 
(3)(A) Chapter 571 of such title is amended by inserting after 
section 6327 the following new section: 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 323 
"§6328. Computation of years of service: voluntary retire-
ment 
"(a) ENLISTED MEMBERS.—Time required to be made up under 
section 972(a) of this title after the date of the enactment of this 
section may not be counted in computing years of service under 
this chapter. 
"(b) OFFICERS.—Section 972(b) of this title excludes from com-
putation of an officer's years of service for purposes of this chapter 
any time identified with respect to that officer under that section.". 
(B) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 6327 
the following new item: 
"6328. Computation of years of service: voluntary retirement.". 
(4) Chapter 867 of such title is amended— 
(A) in section 8925(b), by striking out "section 972" and 
inserting in lieu thereof "section 972(a)"; and 
(B) by adding at the end of section 8926 the following 
new subsection: 
"(d) Section 972(b) of this title excludes from computation of 
an officer's years of service for purposes of this section any time 
identified with respect to that officer under that section.". 
(e) EFFECTIVE DATE AND APPLICABILITY.—The amendments 
lo use 972 note 
made by this section shall take effect on the date of the enactment 
of this Act and shall apply to any period of time covered by section 
972 of title 10, United States Code, that occurs after that date. 
SEC. 562. ARMY RANGER TRAINING. 
(a) IN GENERAL.—(1) Chapter 401 of title 10, United States 
Code, is amended by inserting after section 4302 the following 
new section: 
"§ 4303. Army Ranger training: instructor staffing; safety 
"(a) 
LEVELS OF PERSONNEL ASSIGNED.—(1) The Secretary of 
the Army shall ensure that at all times the number of officers, 
and the number of enlisted members, permanently assigned to 
the Ranger Training Brigade (or other organizational element of 
the Army primarily responsible for Ranger student training) are 
not less than 90 percent of the required manning spaces for officers, 
and for enlisted members, respectively, for that brigade. 
"(2) In this subsection, the term 'required manning spaces' 
means the number of personnel spaces for officers, and the number 
of personnel spaces for enlisted members, that are designated in 
Army authorization documents as the number required to accom-
plish the missions of a particular unit or organization. 
"(b) TRAINING SAFETY CELLS.—(1) The Secretary of the Army 
shall establish and maintain an organizational entity known as 
a 'safety cell' as part of the organizational elements of the Army 
responsible for conducting each of the three major phases of the 
Ranger Course. The safety cell in each different geographic area 
of Ranger Course training shall be comprised of personnel who 
have sufficient continuity and experience in that geographic area 
of such training to be knowledgeable of the local conditions year-
round, including conditions of terrain, weather, water, and climate 
and other conditions and the potential effect on those conditions 
on Ranger student training and safety. 
"(2) Members of each safety cell shall be assigned in sufficient 
numbers to serve as advisers to the officers in charge of the major 
110 STAT. 324 
PUBLIC LAW 104-106—FEB. 10, 1996 
phase of Ranger training and shall assist those officers in making 
informed daily 'go' and 'no-go' decisions regarding training in light 
of all relevant conditions, including conditions of terrain, weather, 
water, and climate and other conditions.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 4302 
the following new item: 
"4303. Army Ranger training: instructor staffing; safety.". 
10 use 4303 
(b) ACCOMPLISHMENT OF REQUIRED MANNING LEVELS.—(1) If, 
^ote. 
as of the date of the enactment of this Act, the number of officers, 
and the number of enlisted members, permanently assigned to 
the Army Ranger Training Brigade are not each at (or above) 
the requirement specified in subsection (a) of section 4303 of title 
10, United States Code, as added by subsection (a), the Secretary 
of the Army shall— 
(A) take such steps as necessary to accomplish that require-
ment within 12 months after such date of enactment; and 
(B) submit to Congress, not later than 90 days after such 
date of enactment, a plan to achieve and maintain that require-
ment. 
(2) The requirement specified in subsection (a) of section 4303 
of title 10, United States Code, as added by subsection (a), shall 
expire two years after the date (on or after the date of the enactment 
of this Act) on which the required manning levels referred to in 
paragraph (1) are first attained. 
Reports. 
(c) GAG ASSESSMENT.—(1) Not later than one year after the 
date of the enactment of this Act, the Comptroller General shall 
submit to Congress a report providing a preliminary assessment 
of the implementation and effectiveness of all corrective actions 
taken by the Army as a result of the February 1995 accident 
at the Florida Ranger Training Camp, including an evaluation 
of the implementation of the required manning levels established 
by subsection (a) of section 4303 of title 10, United States Code, 
as added by subsection (a). 
(2) At the end of the two-year period specified in subsection 
(b)(2), the Comptroller General shall submit to Congress a report 
providing a final assessment of the matters covered in the prelimi-
nary report under paragraph (1). The report shall include the 
Comptroller General's recommendation as to the need to continue 
required statutory manning levels as specified in subsection (a) 
of section 4303 of title 10, United States Code, as added by sub-
section (a). 
(d) SENSE OF CONGRESS.—In light of requirement that particu-
larly dangerous training activities (such as Ranger training, Search, 
Evasion, Rescue, and Escape (SERE) training, SEAL training, and 
Airborne training) must be adequately manned and resourced to 
ensure safety and effective oversight, it is the sense of Congress— 
(1) that the Secretary of Defense, in conjunction with the 
Secretaries of the military departments, should review and, 
if necessary, enhance oversight of all such training activities; 
and 
(2) that organizations similar to the safety cells required 
to be established for Army Ranger training in section 4303 
of title 10, United States Code, as added by subsection (a), 
should (when appropriate) be used for all such training activi-
ties. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 325 
SEC. 563. SEPARATION IN CASES INVOLVING EXTENDED CONFINE-
MENT. 
(a) SEPARATION.—(1)(A) Chapter 59 of title 10, United States 
Code, is amended by inserting after section 1166 the following 
new section: 
"§1167. Members under confinement by sentence of court-
martial: separation after six months confinement 
"Except as otherwise provided in regulations prescribed by 
the Secretary of Defense, a member sentenced by a court-martial 
to a period of confinement for more than six months may be sepa-
rated from the member'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 six 
months.". 
(B) The table of sections at the beginning of chapter 59 of 
such title is amended by inserting after the item relating to section 
1166 the following new item: 
"1167. Members under confinement by sentence of court-martial: separation after 
six months confinement.". 
(2)(A) Chapter 1221 of title 10, United States Code, is amended 
by adding at the end the following: 
"§ 12687. Reserves under confinement by sentence of court-
martial: separation after six months confinement 
"Except as otherwise provided in regulations prescribed by 
the Secretary of Defense, a Reserve sentenced by a court-martial 
to a period of confinement for more than six months may be sepa-
rated from that Reserve's armed force at any time after the sentence 
to confinement has become final under chapter 47 of this title 
and the Reserve has served in confinement for a period of six 
months.". 
(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. Reserves under confinement by sentence of court-martial: separation after 
six months confinement.". 
(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 paragraph (3); and 
(C) by inserting after paragraph (1) the following new 
paragraph (2): 
"(2) who may be separated under section 12687 of this 
title by reason of a sentence to confinement adjudged by a 
court-martial; or". 
SEC. 564. LIMITATIONS ON REDUCTIONS IN MEDICAL PERSONNEL. 
(a) IN GENERAL.—(1) Chapter 3 of title 10, United States Code, 
is amended by inserting after section 129b the following new section: 
110 STAT. 326 
PUBLIC LAW 104-10&—FEB. 10, 1996 
"§ 129c. Medical personnel: limitations on reductions 
"(a) LIMITATION ON REDUCTION.—For any fiscal year, the Sec-
retary of Defense may not make a reduction in the number of 
medical personnel of the Department of Defense described in sub-
section (b) unless the Secretary makes a certification for that fiscal 
year described in subsection (c). 
"(b) COVERED REDUCTIONS.—Subsection (a) applies to a reduc-
tion in the number of medical personnel of the Department of 
Defense as of the end of a fiscal year to a number that is less 
than— 
"(1) 95 percent of the number of such personnel at the 
end of the immediately preceding fiscal year; or 
"(2) 90 percent of the number of such personnel at the 
end of the third fiscal year preceding the fiscal year. 
"(c) CERTIFICATION.—^A certification referred to in subsection 
(a) with respect to reductions in medical personnel of the Depart-
ment of Defense for any fiscal year is a certification by the Secretary 
of Defense to Congress that— 
"(1) the number of medical personnel being reduced is 
excess to the current and projected needs of the Department 
of Defense; and 
"(2) such reduction will not result in an increase in the 
cost of health care services provided under the Civilian Health 
and Medical Program of the Uniformed Services under chapter 
55 of this title. 
"(d) POLICY FOR IMPLEMENTING REDUCTIONS.—^Whenever the 
Secretary of Defense directs that there be a reduction in the total 
number of military medical personnel of the Department of Defense, 
the Secretary shall require that the reduction be carried out so 
as to ensure that the reduction is not exclusively or disproportion-
ately borne by any one of the armed forces and is not exclusively 
or disproportionately borne by either the active or the reserve 
components. 
"(e) DEFINITION.—In this section, the term 'medical personnel' 
means— 
"(1) the members of the armed forces covered by the term 
'medical personnel' as defined in section 115a(g)(2) of this title; 
and 
"(2) the civilian personnel of the Department of Defense 
assigned to military medical facilities.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 129b 
the following new item: 
"129c. Medical personnel: limitations on reductions.". 
10USC129C 
(b) SPECIAL TRANSITION RULE FOR FISCAL YEAR 1996.—For 
note- 
purposes of applying subsection (b)(1) of section 129c of title 10, 
United States Code, as added by subsection (a), during fiscal year 
1996, the number against which the percentage limitation of 95 
percent is computed shall be the number of medical personnel 
of the Department of Defense as of the end of fiscal year 1994 
(rather than the number as of the end of fiscal year 1995). 
(c) REPORT ON PLANNED REDUCTIONS.—(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 National 
Security of the House of Representatives a plan for the reduction 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 327 
of the number of medical personnel of the Department of Defense 
over the five-year period beginning on October 1, 1996. 
(2) The Secretary shall prepare the plan through the Assistant 
Secretary of Defense having responsibility for health affairs, who 
shall consult in the preparation of the plan with the "urgeon 
General of the Army, the Surgeon General of the Navy, and the 
Surgeon General of the Air Force. 
(3) For purposes of this subsection, the term "medical personnel 
of the Department of Defense" shall have the meaning given the 
term "medical personnel" in section 129c(e) of title 10, United 
States Code, as added by subsection (a). 
(d) REPEAL OF SUPERSEDED PROVISIONS OF LAW.—The following 
provisions of law are repealed: 
(1) Section 711 of the National Defense Authorization Act 
for Fiscal Year 1991 (10 U.S.C. 115 note). 
(2) Subsection (b) of section 718 of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
102-190; 10 U.S.C. 115 note). 
(3) Section 518 of the National Defense Authorization Act 
for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 12001 
note). 
SEC. 565. SENSE OF CONGRESS CONCERNING PERSONNEL TEMPO 
RATES. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Excessively high personnel tempo rates for members 
of the Armed Forces resulting from high-tempo unit operations 
degrades unit readiness and morale and eventually can be 
expected to adversely affect unit retention. 
(2) The Armed Forces have begun to develop methods to 
measure and manage personnel tempo rates. 
(3) The Armed Forces have attempted to reduce operations 
and personnel tempo for heavily tasked units by employing 
alternative capabilities and reducing tasking requirements. 
(b) SENSE OF CONGRESS.—The Secretary of Defense should 
continue to enhance the knowledge within the Armed Forces of 
personnel tempo and to improve the techniques by which personnel 
tempo is defined and managed with a view toward establishing 
and achieving reasonable personnel tempo standards for all person-
nel, regardless of service, unit, or assignment. 
SEC. 566. SEPARATION BENEFITS DURING FORCE REDUCTION FOR 
OFFICERS OF COMMISSIONED CORPS OF NATIONAL OCE-
ANIC AND ATMOSPHERIC ADMINISTRATION. 
(a) SEPARATION BENEFITS.—Subsection (a) of section 3 of the 
Act of August 10, 1956 (33 U.S.C. 857a), is amended by adding 
at the end the following new paragraph: 
"(15) Section 1174a, special separation benefits (except that 
benefits under subsection (b)(2)(B) of such section are subject 
to the availability of appropriations for such purpose and are 
provided at the discretion of the Secretary of Commerce).". 
(b) 
TECHNICAL 
CORRECTIONS.—Such 
section 
is 
further 
amended— 
(1) by striking out "Coast and Geodetic Survey" in sub-
sections (a) and (b) and inserting in lieu thereof "commissioned 
officer corps of the National Oceanic and Atmospheric Adminis-
tration"; and 
110 STAT. 328 
PUBLIC LAW 104-106—FEB. 10, 1996 
(2) in subsection (a), by striking out "including changes 
in those rules made after the effective date of this Act" in 
the matter preceding paragraph (1) and inserting in lieu thereof 
"as those provisions are in effect from time to time". 
10 use 1293 
(c) TEMPORARY EARLY RETIREMENT AUTHORITY.—Section 4403 
J^ots- 
(other than subsection (f)) of the National Defense Authorization 
Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2702; 
10 U.S.C. 1293 note) shall apply to the commissioned officer corps 
of the National Oceanic and Atmospheric Administration in the 
same manner and to the same extent as that section applies to 
the Department of Defense. The Secretary of Commerce shall imple-
ment the provisions of that section with respect to such commis-
sioned officer corps and shall apply the provisions of that section 
to the provisions of the Coast and Geodetic Survey Commissioned 
Officers' Act of 1948 relating to the retirement of members of 
such commissioned officer corps. 
33 use 857a 
(d) EFFECTIVE DATE.—^This section shall apply only to members 
™te. 
of the commissioned officer corps of the National Oceanic and 
Atmospheric Administration who are separated after September 
30, 1995. 
SEC. 567. DISCHARGE OF MEMBERS OF THE ARMED FORCES WHO 
HAVE THE HrV-1 VIRUS. 
(a) IN GENERAL.—(1) Section 1177 of title 10, United States 
Code, is amended to read as follows: 
"§1177. Members infected with HIV-1 virus: mandatory dis-
charge or retirement 
"(a) MANDATORY SEPARATION.—A member of the armed forces 
who is HIV-positive shall be separated. Such separation shall be 
made on a date determined by the Secretary concerned, which 
shall be as soon as practicable after the date on which the deter-
mination is made that the member is HIV-positive and not later 
than the last day of the sixth month beginning after such date. 
"(b) FORM OF SEPARATION.—If a member to be separated under 
this section is eligible to retire under any provision of law or 
to be transferred to the Fleet Reserve or Fleet Marine Corps 
Reserve, the member shall be so retired or so transferred. Other-
wise, the member shall be discharged. The characterization of the 
service of the member shall be determined without regard to the 
determination that the member is HIV-positive. 
"(c) 
DEFERRAL OF SEPARATION FOR MEMBERS IN 18-YEAR 
RETIREMENT SANCTUARY.—In the case of a member to be discharged 
under this section who on the date on which the member is to 
be discharged is within two years of qualifying for retirement under 
any provision of law, or of qualifying for transfer to the Fleet 
Reserve or Fleet Marine Corps Reserve under section 6330 of this 
title, the member may, as determined by the Secretary concerned, 
be retained on active duty until the member is qualified for retire-
ment or transfer to the Fleet Reserve or Fleet Marine Corps 
Reserve, as the case may be, and then be so retired or transferred, 
unless the member is sooner retired or discharged under any other 
provision of law. 
"(d) SEPARATION TO BE CONSIDERED INVOLUNTARY.—^A separa-
tion under this section shall be considered to be an involuntary 
separation for purposes of any other provision of law. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 329 
"(e) ENTITLEMENT TO HEALTH CARE.—A member separated 
under this section shall be entitled to medical and dental care 
under chapter 55 of this title to the same extent and under the 
same conditions as a person who is entitled to such care under 
section 1074(b) of this title. 
"(D COUNSELING ABOUT AVAILABLE MEDICAL CARE.—^A member 
to be separated under this section shall be provided information, 
in writing, before such separation of the available medical care 
(through the Department of Veterans Affairs and otherwise) to 
treat the member's condition. Such information shall include identi-
fication of specific medical locations near the member's home of 
record or point of discharge at which the member may seek nec-
essary medical care. 
"(g) HIV-PosiTiVE MEMBERS.—A member shall be considered 
to be HIV-positive for purposes of this section if there is serologic 
evidence that the member is infected with the virus known as 
Human Immunodeficiency Virus-1 (HIV-1), the virus most com-
monly associated with the acquired immune deficiency syndrome 
(AIDS) in the United States. Such serologic evidence shall be consid-
ered to exist if there is a reactive result given by an enzyme-
linked 
immunosorbent 
assay (ELISA) serologic test that is 
confirmed by a reactive and diagnostic Immunoelectrophoresis test 
(Western blot) on two separate samples. Any such serologic test 
must 
be one that 
is 
approved 
by the Food 
and 
Drug 
Administration.". 
(2) The item relating to such section in the table of sections 
at the beginning of chapter 59 of such title is amended to read 
as follows: 
"1177. Members infected with HIV-1 virus: mandatory discharge or retirement.". 
(b) EFFECTIVE DATE.—Section 1177 of title 10, United States 10USC1177 
Code, as amended by subsection (a), applies with respect to mem- no^-
bers of the Armed Forces determined to be HIV-positive before, 
on, or after the date of the enactment of this Act. In the case 
of a member of the Armed Forces determined to be HIV-positive 
before such date, the deadline for separation of the member under 
subsection (a) of such section, as so amended, shall be determined 
from the date of the enactment of this Act (rather than from 
the date of such determination). 
SEC. 568. REVISION AND CODIFICATION OF MILITARY FAMILY ACT 
AND MILITARY CHILD CARE ACT. 
(a) IN GENERAL.—(1) Subtitle A of title 10, United States Code, 
is amended by inserting after chapter 87 the following new chapter: 
"CHAPTER 88—MILITARY FAMILY PROGRAMS AND 
MILITARY CHILD CARE 
"Subchapter 
Sec. 
"I. Military Family Programs 
1781 
"II. Military Child Care 
1791 
"SUBCHAPTER I—MILITARY FAMILY PROGRAMS 
"Sec. 
"1781. Office of Family Policy. 
"1782. Surveys of military families. 
"1783. Family members serving on advisory committees. 
"1784. Employment opportunities for military spouses. 
"1785. Youth sponsorship program. 
29-194 O - 96 - 12 .QL 3 Parti 
110 STAT. 330 
PUBLIC LAW 104-106—FEB. 10, 1996 
President. 
"1786. Dependent student travel within the United States. 
"1787. Reporting of child abuse. 
"§ 1781. Office of Family Policy 
"(a) ESTABLISHMENT.—^There is in the Office of the Secretary 
of Defense an Office of Family PoHcy (hereinafter in this section 
referred to as the 'Office'). The Office shall be under the Assistant 
Secretary of Defense for Force Management and Personnel. 
"(b) DUTIES.—The Office— 
"(1) shall coordinate programs and activities of the military 
departments to the extent that they relate to military families; 
and 
"(2) shall make recommendations to the Secretaries of the 
military departments with respect to programs and policies 
regarding military families. 
"(c) STAFF.—^The Office shall have not less than five professional 
staff members. 
"§ 1782. Surveys of military families 
"(a) AUTHORITY.—The Secretary of Defense may conduct sur-
veys of members of the armed forces on active duty or in an 
active status, members of the families of such members, and retired 
members of the armed forces to determine the effectiveness of 
Federal programs relating to military families and the need for 
new programs. 
"(b) RESPONSES TO B E VOLUNTARY.—Responses to surveys con-
ducted under this section shall be voluntary. 
"(c) FEDERAL RECORDKEEPING REQUIREMENTS.—^With respect 
to such surveys, family members of members of the armed forces 
and reserve and retired members of the armed forces shall be 
considered to be employees of the United States for purposes of 
section 3502(3)(A)(i) of title 44. 
"§ 1783. Family members serving on advisory committees 
"A committee within the Department of Defense which advises 
or assists the Department in the performance of any function which 
affects members of military families and which includes members 
of military families in its membership shall not be considered an 
advisory committee under section 3(2) of the Federal Advisory 
Committee Act (5 U.S.C. App.) solely because of such membership. 
*
*
§ 1784. Employment opportunities for military spouses 
"(a) AUTHORITY.—^The President shall order such measures as 
the 
President 
considers 
necessary 
to 
increase 
employment 
opportunities for spouses of members of the armed forces. Such 
measures may include— 
"(1) excepting, pursuant to section 3302 of title 5, from 
the competitive service positions in the Department of Defense 
located outside of the United States to provide employment 
opportunities for qualified spouses of members of the armed 
forces in the same geographical area as the permanent duty 
station of the members; and 
"(2) providing preference 
in hiring for 
positions 
in 
nonappropriated fund activities to qualified spouses of members 
of the armed forces stationed in the same geographical area 
as the nonappropriated fund activity for positions in wage 
grade UA-8 and below and equivalent positions and for posi-
tions paid at hourly rates. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 331 
"(b) REGULATIONS.—The Secretary of Defense shall prescribe 
regulations— 
"(1) to implement such measures as the President orders 
under subsection (a); 
"(2) to provide preference to qualified spouses of members 
of the armed forces in hiring for any civilian position in the 
Department of Defense if the spouse is among persons deter-
mined to be best qualified for the position and if the position 
is located in the same geographical area as the permanent 
duty station of the member; 
"(3) to ensure that notice of any vacant position in the 
Department of Defense is provided in a manner reasonably 
designed to reach spouses of members of the armed forces 
whose permanent duty stations are in the same geographic 
area as the area in which the position is located; and 
"(4) to ensure that the spouse of a member of the armed 
forces who applies for a vacant position in the Department 
of Defense shall, to the extent practicable, be considered for 
any such position located in the same geographic area as the 
permanent duty station of the member. 
"(c) STATUS OF PREFERENCE ELIGIBLES.—Nothing in this section 
shall be construed to provide a spouse of a member of the armed 
forces with preference in hiring over an individual who is a pref-
erence eligible. 
"§ 1785. Youth sponsorship program 
"(a) REQUIREMENT.—The Secretary of Defense shall require 
that there be at each military installation a youth sponsorship 
program to facilitate the integration of dependent children of mem-
bers of the armed forces into new surroundings when moving to 
that military installation as a result of a parent's permanent change 
of station. 
"(b) DESCRIPTION OF PROGRAMS.—The program at each installa-
tion shall provide for involvement of dependent children of members 
presently stationed at the military installation and shall be directed 
primarily toward children in their preteen and teenage years. 
"§ 1786. Dependent student travel within the United States 
"Funds available to the Department of Defense for the travel 
and transportation of dependent students of members of the armed 
forces stationed overseas may be obligated for transportation allow-
ances for travel within or between the contiguous States. 
"§ 1787. Reporting of child abuse 
"(a) IN GENERAL.—The Secretary of Defense shall request each 
State to provide for the reporting to the Secretary of any report 
the State receives of known or suspected instances of child abuse 
and neglect in which the person having care of the child is a 
member of the armed forces (or the spouse of the member). 
"(b) DEFINITION.—In this section, the term 'child abuse and 
neglect' has the meaning provided in section 3(1) of the Child 
Abuse Prevention and Treatment Act (42 U.S.C. 5102). 
"SUBCHAPTER II—MILITARY CHILD CARE 
"Sec. 
"1791. Funding for military child care. 
"1792. Child care employees. 
110 STAT. 332 
PUBLIC LAW 104-106—FEB. 10, 1996 
"1793. Parent fees. 
"1794. Child abuse prevention and safety at facilities. 
"1795. Parent partnerships with child development centers. 
"1796. Subsidies for family home day care. 
"1797. Early childhood education program. 
"1798. Definitions. 
"§ 1791. Funding for military child care 
"It is the policy of Congress that the amount of appropriated 
funds available during a fiscal year for operating expenses for 
military child development centers and programs shall be not less 
than the amount of child care fee receipts that are estimated 
to be received by the Department of Defense during that fiscal 
year. 
"§ 1792. Child care employees 
Regulations. 
"(a) REQUIRED TRAINING.—(1) The Secretary of Defense shall 
prescribe regulations implementing, a training program for child 
care employees. Those regulations shall apply uniformly among 
the military departments. Subject to paragraph (2), satisfactory 
completion of the training program shall be a condition of employ-
ment of any person as a child care employee. 
"(2) Under those regulations, the Secretary shall require that 
each child care employee complete the training program not later 
than six months after the date on which the employee is employed 
as a child care employee. 
"(3) The training program established under this subsection 
shall cover, at a minimum, training in the following: 
"(A) Early childhood development. 
"(B) Activities and disciplinary techniques appropriate to 
children of different ages. 
"(C) Child abuse prevention and detection. 
"(D) Cardiopulmonary resuscitation and other emergency 
medical procedures. 
"(b) TRAINING AND CURRICULUM SPECIALISTS.—(1) The Sec-
retary of Defense shall require that at least one employee at each 
military child development center be a specialist in training and 
curriculum development. The Secretary shall ensure that such 
employees have appropriate credentials and experience. 
"(2) The duties of such employees shall include the following: 
"(A) Special teaching activities at the center. 
"(B) Daily oversight and instruction of other child care 
employees at the center. 
"(C) Daily assistance in the preparation of lesson plans. 
"(D) Assistance in the center's child abuse prevention and 
detection program. 
"(E) Advising the director of the center on the performance 
of other child care employees. 
"(3) Each employee referred to in paragraph (1) shall be an 
employee in a competitive service position. 
"(c) COMPETITIVE RATES OF PAY.—For the purpose of providing 
military child development centers with a qualified and stable 
civilian workforce, employees at a military installation who are 
directly involved in providing child care and are paid from 
nonappropriated funds— 
"(1) in the case of entry-level employees, shall be paid 
at rates of pay competitive with the rates of pay paid to other 
entry-level employees at that installation who are drawn from 
the same labor pool; and 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 333 
"(2) in the case of other employees, shall be paid at rates 
of pay substantially equivalent to the rates of pay paid to 
other employees at that installation with similar training, 
seniority, and experience. 
"(d) 
EMPLOYMENT 
PREFERENCE 
PROGRAM 
FOR MILITARY 
SPOUSES.—(1) The Secretary of Defense shall conduct a program 
under which qualified spouses of members of the armed forces 
shall be given a preference in hiring for the position of child care 
employee in a position paid from nonappropriated funds if the 
spouse is among persons determined to be best qualified for the 
position. 
"(2) A spouse who is provided a preference under this subsection 
at a military child development center may not be precluded from 
obtaining another preference, in accordance with section 1794 of 
this title, in the same geographic area as the military child develop-
ment center. 
"(e) COMPETITIVE SERVICE POSITION DEFINED.—In this section, 
the term 'competitive service position' means a position in the 
competitive service, as defined in section 2102(a)(1) of title 5. 
"§ 1793. Parent fees 
"(a) IN GENERAL.—The Secretary of Defense shall prescribe 
regulations establishing fees to be charged parents for the attend-
ance of children at militai'y child development centers. Those regula-
tions shall be uniform for the military departments and shall 
require that, in the case of children who attend the centers on 
a regular basis, the fees shall be based on family income. 
"(b) LOCAL WAIVER AUTHORITY.—^The Secretary of Defense may 
provide authority to installation commanders, on a case-by-case 
basis, to establish fees for attendance of children at child develop-
ment centers at rates lower than those prescribed under subsection 
(a) if the rates prescribed under subsection (a) are not competitive 
with rates at local non-military child development centers. 
"§ 1794. Child abuse prevention and safety at facilities 
"(a) CHILD ABUSE TASK FORCE.—The Secretary of Defense shall 
maintain a special task force to respond to allegations of widespread 
child abuse at a military installation. The task force shall be com-
posed of personnel from appropriate disciplines, including, where 
appropriate, medicine, psychology, and childhood development. In 
the case of such allegations, the task force shall provide assistance 
to the commander of the installation, and to parents at the installa-
tion, in helping them to deal with such allegations. 
"(b) NATIONAL HOTLINE.—(1) The Secretary of Defense shall 
maintain a national telephone number for persons to use to report 
suspected child abuse or safety violations at a military child develop-
ment center or family home day care site. The Secretary shall 
ensure that such reports may be made anonymously if so desired 
by the person making the report. The Secretary shall establish 
procedures for following up on complaints and information received 
over that number. 
"(2) The Secretary shall publicize the existence of the number. 
"(c) ASSISTANCE FROM LOCAL AUTHORITIES.—The Secretary of 
Defense shall prescribe regulations requiring that, in a case of 
allegations of child abuse at a military child development center 
or family home day care site, the commander of the military 
installation or the head of the task force established under sub-
Regulations. 
Public 
information. 
Regulations. 
110 STAT. 334 
PUBLIC LAW 104-106—FEB. 10, 1996 
section (a) shall seek the assistance of local child protective authori-
ties if such assistance is available. 
"(d) SAFETY REGULATIONS.—^The Secretary of Defense shall pre-
scribe regulations on safety and operating procedures at military 
child development centers. Those regulations shall apply uniformly 
among the military departments. 
"(e) INSPECTIONS.—^The Secretary of Defense shall require that 
each military child development center be inspected not less often 
than four times a year. Each such inspection shall be unannounced. 
At least one inspection a year shall be carried out by a representa-
tive of the installation served by the center, and one inspection 
a year shall be carried out by a representative of the major com-
mand under which that installation operates. 
"(f) REMEDIES FOR VIOLATIONS.—(1) Except as provided in para-
graph (2), any violation of a safety, health, or child welfare law 
or regulation (discovered at an inspection or otherwise) at a military 
child development center shall be remedied immediately. 
"(2) In the case of a violation that is not life threatening, 
the commander of the major command under which the installation 
concerned operates may waive the requirement that the violation 
be remedied immediately for a period of up to 90 days beginning 
on the date of the discovery of the violation. If the violation is 
not remedied as of the end of that 90-day period, the military 
child development center shall be closed until the violation is rem-
edied. The Secretary of the military department concerned may 
waive the preceding sentence and authorize the center to remain 
open in a case in which the violation cannot reasonably be remedied 
within that 90-day period or in which major facility reconstruction 
is required. 
*
*
§ 1795. Parent partnerships with child development centers 
"(a) PARENT BOARDS.—^The Secretary of Defense shall require 
that there be established at each military child development center 
a board of parents, to be composed of parents of children attending 
the center. The board shall meet periodically with staff of the 
center and the commander of the installation served by the center 
for the purpose of discussing problems and concerns. The board, 
together with the staff of the center, shall be responsible for coordi-
nating the parent participation program described in subsection 
(b). 
"(b) 
PARENT 
PARTICIPATION PROGRAMS.—^The Secretary of 
Defense shall require the establishment of a parent participation 
program at each military child development center. As part of 
such program, the Secretary of Defense may establish fees for 
attendance of children at such a center, in the case of parents 
who participate in the parent participation program at that center, 
at rates lower than the rates that otherwise apply. 
*
*
§ 1796. Subsidies for family home day care 
"The Secretary of Defense may use appropriated funds available 
for military child care purposes to provide assistance to family 
home day care providers so that family home day care services 
can be provided to members of the armed forces at a cost comparable 
to the cost of services provided by military child development cen-
Regulations. 
ters. The Secretary shall prescribe regulations for the provision 
of such assistance. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 335 
"§ 1797. Early childhood education program 
"The Secretary of Defense shall require that all military child 
development centers meet standards of operation necessary for 
accreditation by an appropriate national early childhood programs 
accrediting body. 
"§ 1798. Definitions 
"In this subchapter: 
"(1) The term 'military child development center' means 
a facility on a military installation (or on property under the 
jurisdiction of the commander of a military installation) at 
which child care services are provided for members of the 
armed forces or any other facility at which such child care 
services are provided that is operated by the Secretary of a 
military department. 
"(2) The term 'family home day care' means home-based 
child care services that are provided for members of the armed 
forces by an individual who (A) is certified by the Secretary 
of the military department concerned as qualified to provide 
those services, and (B) provides those services on a regular 
basis for compensation. 
"(3) The term 'child care employee' means a civilian 
employee of the Department of Defense who is employed to 
work in a military child development center (regardless of 
whether the employee is paid from appropriated funds or 
nonappropriated funds). 
"(4) The term 'child care fee receipts' means those 
nonappropriated funds that are derived from fees paid by mem-
bers of the armed forces for child care services provided at 
military child development centers.". 
(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 
87 the following new item: 
"88. Military Family Programs and Military Child Care 
1781". 
(b) REPORT ON FIVE-YEAR DEMAND FOR CFTLD CARE.—(1) Not 
later than the date of the submission of th' budget for fiscal 
year 1997 pursuant to section 1105 of title 31, I nited States Code, 
the Secretary of Defense shall submit to Congress a report on 
the expected demand for child care by military and civilian person-
nel of the Department of Defense during fiscal years 1997 through 
2001. 
(2) The report shall include— 
(A) a plan for meeting the expected child care demand 
identified in the report; and 
(B) an estimate of the cost of implementing that plan. 
(3) The report shall also include a description of methods for 
monitoring family home day care programs of the military 
departments. 
(c) PLAN FOR IMPLEMENTATION OF ACCREDITATION REQUIRE- 
lo use i787 
MENT.—The Secretary of Defense shall submit to the Committee note. 
on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a plan for carrying out 
the requirements of section 1787 of title 10, United States Code, 
as added by subsection (a). The plan shall be submitted not later 
than April 1, 1997. 
110 STAT. 336 
PUBLIC LAW 104-106—FEB. 10, 1996 
10 use 1784 
(d) 
CONTINUATION 
OF 
DELEGATION 
OF 
AUTHORITY 
WITH 
note. 
RESPECT 
TO 
HIRING 
PREFERENCE 
FOR 
QUALIFIED 
MILITARY 
SPOUSES.—The provisions of Executive Order No. 12568, issued 
October 2, 1986 (10 U.S.C. 113 note), shall apply as if the reference 
in that Executive order to section 806(a)(2) of the Department 
of Defense Authorization Act of 1986 refers to section 1784 of 
title 10, United States Code, as added by subsection (a). 
(e) REPEALER.—^The following provisions of law are repealed: 
(1) The Military Family Act of 1985 (title VIII of Public 
Law 99-145; 10 U.S.C. 113 note). 
(2) The Military Child Care Act of 1989 (title XV of Public 
Law 101-189; 10 U.S.C. 113 note). 
10 u s e 1501 
SEC. 569. DETERMINATION OF WHEREABOUTS AND STATUS OF MISS-
note. 
ING PERSONS. 
(a) PURPOSE.—^The purpose of this section is to ensure that 
any member of the Armed Forces (and any Department of Defense 
civilian employee or contractor employee who serves with or accom-
panies the Armed Forces in the field under orders) who becomes 
missing or unaccounted for is ultimately accounted for by the United 
States and, as a general rule, is not declared dead solely because 
of the passage of time. 
(b) IN GENERAL.—(1) Part II of subtitle A of title 10, United 
States Code, is amended by inserting after chapter 75 the following 
new chapter: 
"CHAPTER 76—MISSING PERSONS 
"Sec. 
"1501. System for accounting for missing persons. 
"1502. Missing persons: initial report. 
"1503. Actions of Secretary concerned; initial board inquiry. 
"1504. Subsequent board of inquiry. 
"1505. Further review. 
"1506. Personnel files. 
"1507. Recommendation of status of death. 
"1508. Judicial review. 
"1509. Preenactment, special interest cases. 
"1510. Applicability to Coast Guard. 
"1511. Return alive of person declared missing or dead. 
"1512. Effect on State law. 
"1513. Definitions. 
"§ 1501. System for accounting for missing persons 
Establishment. 
"(a) OFFICE FOR MissiNG PERSONNEL.—(1) The Secretary of 
Defense shall establish within the Office of the Secretary of Defense 
an office to have responsibility for Department of Defense policy 
relating to missing persons. Subject to the authority, direction, 
and control of the Secretary of Defense, the responsibilities of 
the office shall include— 
"(A) policy, control, and oversight within the Department 
of Defense of the entire process for investigation and recovery 
related to missing persons (including matters related to search, 
rescue, escape, and evasion); and 
"(B) coordination for the Department of Defense with other 
departments and agencies of the United States on all matters 
concerning missing persons. 
"(2) In carrying out the responsibilities of the office established 
under this subsection, the head of the office shall be responsible 
for the coordination for such purposes within the Department of 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 337 
Defense among the military departments, the Joint Staff, and the 
commanders of the combatant commands. 
"(3) The office shall establish policies, which shall apply uni-
formly throughout the Department of Defense, for personnel recov-
ery (including search, rescue, escape, and evasion). 
"(4) The office shall establish procedures to be followed by 
Department of Defense boards of inquiry, and by officials reviewing 
the reports of such boards, under this chapter. 
"(b) UNIFORM DOD PROCEDURES.—(1) The Secretary of Defense 
shall prescribe procedures, to apply uniformly throughout the 
Department of Defense, for— 
"(A) the determination of the status of persons described 
in subsection (c); and 
"(B) for the systematic, comprehensive, and timely collec-
tion, analysis, review, dissemination, and periodic update of 
information related to such persons. 
"(2) Such procedures may provide for the delegation by the 
Secretary of Defense of any responsibility of the Secretary under 
this chapter to the Secretary of a military department. 
"(3) Such procedures shall be prescribed in a single directive 
applicable to all elements of the Department of Defense. 
"(4) As part of such procedures, the Secretary may provide 
for the extension, on a case-by-case basis, of any time limit specified 
in section 1502, 1503, or 1504 of this title. Any such extension 
may not be for a period in excess of the period with respect to 
which the extension is provided. Subsequent extensions may be 
provided on the same basis. 
"(c) COVERED PERSONS.—Section 1502 of this title applies in 
the case of the following persons: 
"(1) Any member of the armed forces on active duty who 
becomes involuntarily absent as a result of a hostile action, 
or under circumstances suggesting that the involuntary absence 
is a result of a hostile action, and whose status is undetermined 
or who is unaccounted for. 
"(2) Any civilian employee of the Department of Defense, 
and any employee of a contractor of the Department of Defense, 
who serves with or accompanies the armed forces in the field 
under orders who becomes involuntarily absent as a result 
of a hostile action, or under circumstances suggesting that 
the involuntary absence is a result of a hostile action, and 
whose status is undetermined or who is unaccounted for. 
"(d) PRIMARY NEXT OF KIN.—The individual who is primary 
next of kin of any person prescribed in subsection (c) may for 
purposes of this chapter designate another individual to act on 
behalf of that individual as primary next of kin. The Secretary 
concerned shall treat an individual so designated as if the individual 
designated were the primary next of kin for purposes of this chapter. 
A designation under this subsection may be revoked at any time 
by the person who made the designation. 
"(e) TERMINATION OF APPLICABILITY OF PROCEDURES WHEN 
MISSING PERSON IS ACCOUNTED FOR.—The provisions of this chapter 
relating to boards of inquiry and to the actions by the Secretary 
concerned on the reports of those boards shall cease to apply in 
the case of a missing person upon the person becoming accounted 
for or otherwise being determined to be in a status other than 
missing. 
110 STAT. 338 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(f) SECRETARY CONCERNED.—In this chapter, the term 'Sec-
retary concerned' includes, in the case of a civiUan employee of 
the Department of Defense or contractor of the Department of 
Defense, the Secretary of the military department or head of the 
element of the Department of Defense employing the employee 
or contracting with the contractor, as the case may be. 
"§ 1502. Missing persons: initial report 
"(a) PRELIMINARY ASSESSMENT AND RECOMMENDATION BY COM-
MANDER.—^After receiving information that the whereabouts and 
status of a person described in section 1501(c) of this title is uncer-
tain and that the absence of the person may be involuntary, the 
commander of the unit, facility, or area to or in which the person 
is assigned shall make a preliminary assessment of the cir-
cumstances. If, as a result of that assessment, the commander 
concludes that the person is missing, the commander shall— 
"(1) recommend that the person be placed in a missing 
status; and 
"(2) not later than 48 hours after receiving such informa-
tion, transmit a report containing that recommendation to the 
theater component commander with jurisdiction over the miss-
ing person in accordance with procedures prescribed under 
section 1501(b) of this title. 
"(b) 
TRANSMISSION THROUGH 
THEATER 
COMPONENT 
COM-
MANDER.—^Upon reviewing a report under subsection (a) rec-
ommending that a person be placed in a missing status, the theater 
component commander shall ensure that all necessary actions are 
being taken, and all appropriate assets are being used, to resolve 
the status of the missing person. Not later than 14 days after 
receiving the report, the theater component commander shall for-
ward the report to the Secretary of Defense or the Secretary con-
cerned in accordance with procedures prescribed under section 
1501(b) of this title. The theater component commander shall 
include with such report a certification that all necessary actions 
are being taken, and all appropriate assets are being used, to 
resolve the status of the missing person. 
"(c) SAFEGUARDING AND FORWARDING OF RECORDS.—^A com-
mander making a preliminary assessment under subsection (a) 
with respect to a missing person shall (in accordance with proce-
dures prescribed under section 1501 of this title) safeguard and 
forward for official use any information relating to the whereabouts 
and status of the missing person that results from the preliminary 
assessment or from actions taken to locate the person. The theater 
component commander through whom the report with respect to 
the missing person is transmitted under subsection (b) shall ensure 
that all pertinent information relating to the whereabouts and 
status of the missing person that results from the preliminary 
assessment or from actions taken to locate the person is properly 
safeguarded to avoid loss, damage, or modification. 
"§ 1503. Actions of Secretary concerned; initial board inquiry 
"(a) DETERMINATION BY SECRETARY.—^Upon receiving a rec-
ommendation under section 1502(b) of this title that a person be 
placed in a missing status, the Secretary receiving the recommenda-
tion shall review the recommendation and, not later than 10 days 
after receiving such recommendation, shall appoint a board under 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 339 
this section to conduct an inquiry into the whereabouts and status 
of the person. 
"(b) INQUIRIES INVOLVING MORE THAN ONE MISSING PERSON.— 
If it appears to the Secretary who appoints a board under this 
section that the absence or missing status of two or more persons 
is factually related, the Secretary may appoint a single board under 
this section to conduct the inquiry into the whereabouts and status 
of all such persons. 
"(c) COMPOSITION.—(1) A board appointed under this section 
to inquire into the whereabouts and status of a person shall consist 
of at least one individual described in paragraph (2) who has 
experience with and understanding of military operations or activi-
ties similar to the operation or activity in which the person 
disappeared. 
"(2) An individual referred to in paragraph (1) is the following: 
"(A) A military officer, in the case of an inquiry with 
respect to a member of the armed forces. 
"(B) A civilian, in the case of an inquiry with respect 
to a civilian employee of the Department of Defense or of 
a contractor of the Department of Defense. 
"(3) An individual may be appointed as a member of a board 
under this section only if the individual has a security clearance 
that affords the individual access to all information relating to 
the whereabouts and status of the missing persons covered by 
the inquiry. 
"(4) A Secretary appointing 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 relating to missing persons, the 
determination of death of such persons, and the rights of family 
members and dependents of such persons. 
"(d) DUTIES OF BOARD.—^A board appointed to conduct an 
inquiry into the whereabouts and status of a missing person under 
this section shall— 
"(1) collect, develop, and investigate all facts and evidence 
relating to the disappearance or whereabouts and status of 
the person; 
"(2) collect appropriate documentation of the facts and evi-
dence covered by the board's investigation; 
"(3) analyze the facts and evidence, make findings based 
on that analysis, and draw conclusions as to the current where-
abouts and status of the person; and 
"(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 status; or 
"(B) the person be declared to have deserted, to be 
absent without leave, or (subject to the requirements of 
section 1507 of this title) 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, documents, 
statements, photographs, tapes, messages, maps, sketches, 
reports, and other information (whether classified or unclassi-
fied) relating to the whereabouts and status of each person 
covered by the inquiry; 
110 STAT. 340 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(2) gather information relating to actions taken to find 
the person, including any evidence of the whereabouts and 
status of the person arising from such actions; and 
Records. 
"(3) maintain a record of its proceedings. 
"(f) COUNSEL FOR MISSING PERSON.—(1) The Secretary appoint-
ing a board to conduct an inquiry under this section shall appoint 
counsel to represent each person covered by the inquiry or, in 
a case covered by subsection (b), one counsel to represent all persons 
covered by the inquiry. Counsel appointed under this paragraph 
may be referred to as 'missing person's counsel' and represents 
the interests of the person covered by the inquiry (and not any 
member of the person's family or other interested parties). 
"(2) To be appointed as a missing person's counsel, a person 
must— 
"(A) have the qualijfications specified in section 827(b) of 
this title (article 27(b) of the Uniform Code of Military Justice) 
for trial counsel or defense counsel detailed for a general 
court-martial; 
"(B) have a security clearance that affords the counsel 
access to all information relating to the whereabouts and status 
of the person or persons covered by the inquiry; and 
"(C) have expertise in the law relating to missing persons, 
the determination of the death of such persons, and the rights 
of family members and dependents of such persons. 
"(3) A missing person's counsel— 
"(A) shall have access to all facts and evidence considered 
by the board during the proceedings under the inquiry for 
which the counsel is appointed; 
"(B) shall observe all official activities of the board during 
such proceedings; 
"(C) may question witnesses before the board; and 
"(D) shall monitor the deliberations of the board. 
"(4) A missing person's counsel shall assist the board in ensur-
ing that all appropriate information concerning the case is collected, 
logged, filed, and safeguarded. 
"(5) A missing person's counsel shall review the report of the 
board under subsection (h) and submit to the Secretary concerned 
who appointed the board an independent review of that report. 
That review shall be made an official part of the record of the 
board. 
"(g) ACCESS TO PROCEEDINGS.—The proceedings of a board dur-
ing 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 the immediate family, and 
any other previously designated person of the person). 
"(h) REPORT.—(1) A board appointed under this section 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 considered by 
the board in the inquiry; 
"(B) the recommendation of the board under subsection 
(d) with respect to each person covered by the report; and 
"(C) disclosure of whether classified 
documents and 
information were reviewed by the board or were otherwise 
used by the board in forming recommendations under subpara-
graph (B). 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 341 
"(2) A board shall submit a report under this subsection 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. The report may include a classified annex. 
"(3) The Secretary of Defense shall prescribe procedures for 
the release of a report submitted under this subsection with respect 
to a missing person. Such procedures shall provide that the report 
may not be made public (except as provided for in subsection 
(j)) until one year after the date on which the report is submitted, 
"(i) DETERMINATION BY SECRETARY.—(1) Not later than 30 days 
after receiving a report from a board under subsection (h), 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 complete and free 
of administrative error. If the Secretary determines 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. 
"(3) Upon a determination by the Secretary that a report 
reviewed under this subsection is complete and free of administra-
tive error, the Secretary shall make a determination concerning 
the status of each person covered by the report, including whether 
the person shall— 
"(A) be declared to be 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 INTERESTED PER-
SONS.—Not later than 30 days after the date on which the Secretary 
concerned makes a determination of the status of a person under 
subsection (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 previously 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) the report of the board (including the names of 
the members of the board) under subsection (h); and 
"(2) inform each individual referred to in paragraph (1) 
that the United States will conduct a subsequent inquiry into 
the whereabouts and status of the person on or about one 
year after the date of the first official notice of the disappear-
ance of the person, unless information becomes available sooner 
that may result in a change in status of the person. 
"(k) TREATMENT OF DETERMINATION.—Any determination of the 
status of a missing person under subsection (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 determination under 
section 1503(i) 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 concerned shall 
110 STAT. 342 
PUBLIC LAW 104-106—FEB. 10, 1996 
appoint a board under this section to conduct an inquiry into 
the information. 
"(b) DATE OF APPOINTMENT.—The Secretary concerned 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 transmission of a report concerning 
the person under section 1502(a)(2) of this title. 
"(c) COMBINED INQUIRIES.—If it appears to the Secretary con-
cerned 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 and status of such 
persons. 
"(d) COMPOSITION.—(1) A board appointed under this section 
shall be composed of at least three members as follows: 
"(A) In the case of a board that will inquire into the 
whereabouts and status of one or more members of the armed 
forces (and no civilians described in subparagraph (B)), the 
board shall be composed of officers having the grade of major 
or lieutenant commander or above. 
"(B) In the case of a board that will inquire into the 
whereabouts and status of one or more civilian employees of 
the Department of Defense or contractors of the Department 
of Defense (and no members of the armed forces), the board 
shall be composed of— 
"(i) not less than three employees of the Department 
of Defense whose rate of annual pay is equal to or greater 
than the rate of annual pay payable for grade GS-13 
of the General Schedule under section 5332 of title 5; 
and 
"(ii) such members of the armed forces as the Secretary 
considers advisable. 
"(C) In the case of a board that will inquire into the 
whereabouts and status of both one or more members of the 
armed forces and one or more civilians described in subpara-
graph (B)— 
"(i) the board shall include at least one officer described 
in subparagraph (A) and at least one employee of the 
Department of Defense described in subparagraph (B)(i); 
and 
"(ii) the ratio of such officers to such employees on 
the board shall be roughly proportional to the ratio of 
the number of members of the armed forces who are sub-
jects of the board's inquiry to the number of civilians who 
are subjects of the board's inquiry. 
"(2) The Secretary concerned shall designate one member 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 where-
abouts and status of each person covered by the inquiry. 
"(3) One member of each board appointed under this subsection 
shall be an individual who— 
"(A) has an 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 persons were engaged 
in at the time such person or persons disappeared. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 343 
"(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, 
with the same qualifications as specified in section 1503(c)(4) of 
this title. 
"(e) DUTIES OF BOARD.—^A board appointed under this section 
to conduct an inquiry into the whereabouts and status of a person 
shall— 
"(1) review the reports with respect to the person transmit-
ted under section 1502(a)(2) of this title and submitted under 
section 1503(h) of this title; 
"(2) collect and evaluate any document, fact, or other evi-
dence with respect to the whereabouts and status of the person 
that has become available since the determination of the status 
of the person under section 1503 of this title; 
"(3) draw conclusions as to the whereabouts and status 
of the person; 
"(4) determine on the basis of the activities under para-
graphs (1) and (2) whether the status of the person should 
be continued or changed; and 
"(5) submit to the Secretary concerned a report describing Reports, 
the findings and conclusions of the board, together with a 
recommendation for a determination by the Secretary concern-
ing the whereabouts and status of the person. 
"(f) COUNSEL FOR MISSING PERSONS.—(1) When the Secretary 
concerned appoints a board to conduct an inquiry under this section, 
the Secretary shall appoint counsel to represent each person covered 
by the inquiry. 
"(2) A person appointed as counsel under this subsection shall 
meet the qualifications and have the duties set forth in section 
1503(f) of this title for a missing person's counsel appointed under 
that section. 
"(3) The review of the report of a board on an inquiry that 
is submitted by such counsel shall be made an official part of 
the record of the board with respect to the inquiry. 
"(g) ATTENDANCE OF FAMILY MEMBERS AND CERTAIN OTHER 
INTERESTED PERSONS AT PROCEEDINGS.—(1) With respect to any 
person covered by an inquiry under this section, the primary next 
of kin, other members of the immediate family, and any other 
previously designated person of the person may attend the proceed-
ings of the board during the inquiry. 
"(2) The Secretary concerned shall take reasonable actions 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 paragraph (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 individual receives the notice. 
"(4) Each individual who notifies the Secretary under paragraph 
(3) of the individual's intent to attend the proceedings of the board— 
"(A) in the case of an individual who is the primary next 
of kin or the previously designated 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 
110 STAT. 344 
PUBLIC LAW 104-106—FEB. 10, 1996 
the whereabouts and status of the person, and to any other 
unclassified information or documents relating to the where-
abouts and status of the person; 
"(C) shall be afforded the opportunity to present informa-
tion at the proceedings of the board that such individual consid-
ers to be relevant to those proceedings; and 
"(D) subject to paragraph (5), shall be given the opportunity 
to submit in writing an objection to any recommendation of 
the board under subsection (i) 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 15 days after the date on which the recommenda-
tions are made; and 
"(ii) submit to the president of the board the objections 
in writing not later than 30 days after the date on which 
the recommendations are made. 
"(B) The president of a board shall include any objections 
to a recommendation of the board that are submitted to the presi-
dent of the board under subparagraph (A) in the report of the 
board containing the recommendation under subsection (i). 
"(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 transportation, legal fees, transcription 
costs, witness expenses, and other expenses) incurred by that 
individual in attending such proceedings. 
Classified 
"(h) AVAILABILITY OF INFORMATION TO BOARDS.—(1) I n COnduct-
information. 
ing proceedings in an inquiry under this section, a board may 
secure directly from any department or agency of the United States 
any information that the board considers 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 classified informa-
tion; or 
"(B) release the information in a manner not requiring 
the removal of markings indicating the classified nature of 
the information. 
"(3)(A) If a request for information under paragraph (2) covers 
classified information that cannot be declassified, or if the classifica-
tion markings cannot be removed before release from the informa-
tion covered by the request, or if the material cannot be summarized 
in a manner that prevents the release of classified information, 
the classified information shall be made available only to the presi-
dent of the board making the request and the counsel for the 
missing person appointed under subsection (f). 
"(B) The president of a board shall close to persons who do 
not have appropriate security clearances the proceeding of the board 
at which classified information is discussed. Participants at a 
proceeding of a board at which classified information is discussed 
shall comply with all applicable laws and regulations relating to 
the disclosure of classified information. The Secretary concerned 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 345 
shall assist the president of a board in ensuring that classified 
information is not compromised through board proceedings. 
"(i) RECOMMENDATION ON STATUS.—<1) Upon completion of an 
inquiry under this subsection, a board shall make a recommendation 
as to the current whereabouts and 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 in making the recommendation 
the board complies with section 1507 of this title. 
"(j) REPORT.—^A board appointed under this section shall submit 
to the Secretary concerned a report on the inquiry carried out 
by the board, together with the evidence considered by the board 
during the inquiry. The report may include a classified annex. 
"(k) ACTIONS BY SECRETARY CONCERNED.—(1) Not later than 
30 days after the receipt of a report from a board under subsection 
(j), the Secretary shall review— 
"(A) the report; 
"(B) the review of the report submitted to the Secretary 
under subsection (f)(3) by the counsel for each person covered 
by the report; and 
"(C) the objections, if any, to the report submitted to the 
president of the board under subsection (g)(5). 
"(2) In reviewing a report under paragraph (1) (including the 
objections described in subparagraph (C) of that paragraph), the 
Secretary concerned shall determine whether or not the report 
is complete and free of administrative error. If the Secretary deter-
mines 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. 
"(3) Upon a determination by the Secretary that a report 
reviewed under this subsection is complete and free of administra-
tive error, the Secretary- shall make a determination concerning 
the status of each person covered by the report. 
"(1) REPORT TO FAMILY MEMBERS AND OTHER INTERESTED PER-
SONS.—Not later than 60 days after the date on which the Secretary 
concerned makes a determination with respect to a missing person 
under subsection (k), the Secretary shall— 
"(1) provide the report reviewed by the Secretary in making 
the determination to the primary next of kin, the other mem-
bers of the immediate family, and any other previously des-
ignated 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 conduct a further investigation 
into the whereabouts and status of the person as specified 
in section 1505 of this title. 
"(m) TREATMENT OF DETERMINATION.—^Any determination of 
the status of a missing person under subsection (k) shall supersede 
the determination of the status of the person under section 1503 
of this title and shall be treated as the determination of the status 
of the person by all departments and agencies of the United States. 
"§ 1505. Further review 
"(a) SUBSEQUENT REVIEW.—The Secretary concerned shall con-
duct subsequent inquiries into the whereabouts and status of any 
person determined by the Secretary under section 1504 of this 
title to be in a missing status. 
110 STAT. 346 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(b) FREQUENCY OF SUBSEQUENT REVIEWS.—(1) In the case 
of a missing person who was last known to be aUve or who was 
last suspected of being alive, the Secretary shall appoint a board 
to conduct an inquiry with respect to a person under this 
subsection— 
"(A) on or about three years after the date of the initial 
report of the disappearance of the person under section 1502(a) 
of this title; and 
"(B) not later than every three years thereafter. 
"(2) In addition to appointment of boards under paragraph 
(1), the Secretary shall appoint a board to conduct an inquiry 
with respect to a missing person under this subsection upon receipt 
of information that could result in a change of status of the missing 
person. When the Secretary appoints a board under this paragraph, 
the time for subsequent appointments of a board under paragraph 
(1)(B) shall be determined from the date of the receipt of such 
information. 
"(3) The Secretary is not required to appoint a board under 
paragraph (1) with respect to the disappearance of any person— 
"(A) more than 30 years after the initial report of the 
disappearance of the missing person required by section 1502 
of this title; or 
"(B) if, before the end of such 30-year period, the missing 
person is accounted for. 
"(c) ACTION UPON DISCOVERY OR RECEIPT OF INFORMATION.— 
(1) Whenever any United States intelligence agency or other ele-
ment of the Government finds or receives information that may 
be related to a missing person, the information shall promptly 
be forwarded to the office established under section 1501 of this 
title. 
"(2) Upon receipt of information under paragraph (1), the head 
of the office established under section 1501 of this title shall as 
expeditiously as possible ensure that the information is added to 
the appropriate case file for that missing person and notify (A) 
the designated missing person's counsel for that person, and (B) 
the primary next of kin and any previously designated person 
for the missing person of the existence of that information. 
"(3) The head of the office established under section 1501 of 
this title, with the advice of the missing person's counsel notified 
under paragraph (2), shall determine whether the information is 
significant enough to require a board review under this section. 
"(d) CONDUCT OF PROCEEDINGS.—If it is determined that such 
a board should be appointed, the appointment of, and activities 
before, a board appointed under this section shall be governed 
by the provisions of section 1504 of this title with respect to a 
board appointed under that section. 
"§ 1506. Personnel files 
"(a) INFORMATION IN FILES.—Except as provided in subsections 
(b), (c), and (d), the Secretary concerned shall, to the maximum 
extent practicable, ensure that the personnel file of a missing person 
contains all information in the possession of the United States 
relating to the disappearance and whereabouts and status of the 
person. 
"(b) CLASSIFIED INFORMATION.—^The Secretary concerned may 
withhold classified information from a personnel file under this 
section. If the Secretary concerned withholds classified information 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 347 
from a personnel file, the Secretary shall ensure that the file 
contains the following: 
"(1) A notice that the withheld information exists. 
"(2) A notice of the date of the most recent review of 
the classification of the withheld information. 
"(c) PROTECTION OF PRIVACY.—^The Secretary concerned shall 
maintain personnel files under this section, and shall permit disclo-
sure of or access to such files, in accordance with the provisions 
of section 552a of title 5 and with other applicable laws and regula-
tions pertaining to the privacy of the persons covered by the files. 
"(d) PRIVILEGED INFORMATION.—(1) The Secretary concerned 
shall withhold from personnel files under this section, as privileged 
information, 
debriefing 
reports provided by missing 
persons 
returned to United States control which are obtained under a prom-
ise of confidentiality made for the purpose of ensuring the fullest 
possible disclosure of information. 
"(2) If a debriefing report contains non-derogatory information 
about the status and whereabouts of a missing person other than 
the source of the debriefing report, the Secretary concerned shall 
prepare an extract of the non-derogatory information. That extract, 
following a review by the source of the debriefing report, shall 
be placed in the personnel file of the missing person in such a 
manner as to protect the identity of the source providing the 
information. 
"(3) Whenever the Secretary concerned withholds a debriefing 
report from a personnel file under this subsection, the Secretary 
shall ensure that the file contains a notice that withheld information 
exists. 
"(e) WRONGFUL WITHHOLDING.—Except as provided in sub-
sections (a) through (d), any person who knowingly and willfully 
withholds from the personnel file of a missing person any informa-
tion relating to the disappearance or whereabouts and 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 des-
ignated person of the person. 
*
*
§ 1507. Recommendation of status of death 
"(a) REQUIREMENTS RELATING TO RECOMMENDATION.—^A board 
appointed under section 1503, 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 evidence that 
suggests that the person is alive; and 
"(3) representatives of the United States— 
"(A) 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 representa-
tives are not granted such access); and 
"(B) have examined 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 
110 STAT. 348 
PUBLIC LAW 104-106—FEB. 10, 1996 
to obtain access to such records, such representatives are 
not granted such access). 
Reports. 
"(b) 
SUBMITTAL 
OF 
INFORMATION 
ON 
DEATH.—If 
a 
b o a r d 
appointed under section 1503, 1504, or 1505 of this title makes 
a recommendation that a missing person be declared dead, the 
board shall include in the report of the board with respect to 
the person under that section the following: 
"(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. Judicial review 
"(a) RIGHT OF REVIEW.—^A person who is the primary next 
of kin (or the previously designated person) of a person who is 
the subject of a finding described in subsection (b) may obtain 
judicial review in a United States district court of that finding, 
but only on the basis of a claim that there is information that 
could affect the status of the missing person's case that was not 
adequately considered during the administrative review process 
under this chapter. Any such review shall be as provided in section 
706 of title 5. 
"(b) FINDINGS FOR WHICH JUDICIAL REVIEW MAY BE SOUGHT.— 
Subsection (a) applies to the following findings: 
"(1) A finding by a board appointed under section 1504 
or 1505 of this title that a missing person is dead. 
"(2) A finding by a board appointed under section 1509 
of this title that confirms that a missing person formerly 
declared dead is in fact dead. 
"(c) SUBSEQUENT REVIEW.—Appeals from a decision of the dis-
trict court shall be taken to the appropriate United States court 
of appeals and to the Supreme Court as provided by law. 
"§ 1509. Preenactment, special interest cases 
"(a) REVIEW OF STATUS.—In the case of an unaccounted for 
person covered by section 1501(c) of this title who is described 
in subsection (b), if new information that could change the status 
of that person is found or received by a United States intelligence 
agency, by a Department of Defense agency, or by a person specified 
in section 1504(g) of this title, that information shall be provided 
to the Secretary of Defense with a request that the Secretary 
evaluate the information in accordance with sections 1505(c) and 
1505(d) of this title. 
Prisoners of war. 
"(b) CASES ELIGIBLE FOR REVIEW.—The cases eligible for review 
Missing in action, under this section are the following: 
"(1) With respect to the Korean conflict, any unaccounted 
for person who was classified as a prisoner of war or as missing 
in action during that conflict and who (A) was known to be 
or suspected to be alive at the end of that conflict, or (B) 
was classified as missing in action and whose capture was 
possible. 
"(2) With respect to the Cold War, any unaccounted for 
person who was engaged in intelligence operations (such as 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 349 
aerial 'ferret' reconnaissance missions over and around the 
Soviet Union and China) during the Cold War. 
"(3) With respect to the Indochina war era, any unac-
counted for person who was classified as a prisoner of war 
or as missing in action during the Indochina conflict. 
"(c) SPECIAL RULE FOR PERSONS CLASSIFIED AS 'KIA/BNR'.— 
In the case of a person described in subsection (b) who was classified 
as 'killed in action/body not recovered', the case of that person 
may be reviewed under this section only if the new information 
referred to in subsection (a) is compelling. 
"(d) DEFINITIONS.—In this section: 
"(1) The term 'Korean conflict' means the period beginning 
on June 27, 1950, and ending on January 31, 1955. 
"(2) The term 'Cold War' means the period beginning on 
September 2, 1945, and ending on August 21, 1991. 
"(3) The term 'Indochina war era' means the period begin-
ning on July 8, 1959, and ending on May 15, 1975. 
"§ 1510. Applicability to Coast Guard 
"(a) 
DESIGNATED OFFICER TO 
HAVE 
RESPONSIBILITY.—The 
Secretary of Transportation shall designate an officer of the Depart-
ment of Transportation to have responsibility within the Depart-
ment of Transportation for matters relating to missing persons 
who are members of the Coast Guard. 
"(b) PROCEDURES.—The Secretary of Transportation shall pre-
scribe procedures for the determination of the status of persons 
described in section 1501(c) of this title who are members of the 
Coast Guard and for the collection, analysis, review, and update 
of information on such persons. To the maximum extent practicable, 
the procedures prescribed under this section shall be similar to 
the procedures prescribed by the Secretary of Defense under section 
1501(b) of this title. 
"§1511. Return alive of person declared missing or dead 
"(a) PAY AND ALLOWANCES.—^Any person (except for a person 
subsequently determined to have been absent without leave or 
a deserter) in a missing status or declared dead under subchapter 
VII of chapter 55 of title 5 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 absence of the person while given that status or declared 
dead under the law and regulations relating to the pay and allow-
ances of persons returning from a missing status. 
"(b) EFFECT ON GRATUITIES PAID AS A RESULT OF STATUS.— 
Subsection (a) shall not be interpreted to invalidate or otherwise 
affect the receipt by any person of a death gratuity or other payment 
from the United States on behalf of a person referred to in sub-
section (a) before the date of the enactment of this chapter. 
"§ 1512. Effect on State law 
"(a) NONPREEMPTION OF STATE AUTHORITY.—Nothing in this 
chapter shall be construed to invalidate 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 person dead for purposes of such State or political 
subdivision. 
110 STAT. 350 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(b) STATE DEFINED.—In this section, the term 'State' includes 
the District of Columbia, the Commonwealth of Puerto Rico, and 
any territory or possession of the United States. 
"§ 1513. Definitions 
"In this chapter: 
"(1) The term 'missing person' means— 
"(A) a member of the Armed Forces on active duty 
who is in a missing status; or 
"(B) a civilian employee of the Department of Defense 
or an employee of a contractor of the Department of Defense 
who serves with or accompanies the Armed Forces in the 
field under orders and who is in a missing status. 
"(2) The term 'missing status' means the status of a missing 
person who is determined to be absent in a category of any 
of the following: 
"(A) Missing. 
"(B) Missing in action. 
"(C) Interned in a foreign country. 
"(D) Captured. 
"(E) Beleaguered. 
"(F) Besieged. 
"(G) Detained in a foreign country against that person's 
will. 
"(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 recovered and, if 
not identifiable through visual means as those of the miss-
ing person, are identified as those of the missing person 
by a practitioner of an appropriate forensic science; or 
"(C) credible evidence exists to support another deter-
mination 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, stepchild, or illegit-
imate 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, unless legal 
custody of the person by the parent has 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 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 351 
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 informa-
tion the unauthorized disclosure of which (as determined under 
applicable law and regulations) could reasonably be expected 
to damage the national security. 
"(8) The term 'theater component commander' means, with 
respect to any of the combatant commands, an officer of any 
of the armed forces who (A) is commander of all forces of 
that armed force assigned to that combatant command, and 
(B) is directly subordinate to the commander of the combatant 
command.". 
(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 sub-
section (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 matter following paragraph 
(2) and all that follows 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". 
(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 chap-
ter, 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) only apply with respect to a 
case to which section 555 of this title applies."; 
110 STAT. 352 
PUBLIC LAW 104-106—FEB. 10, 1996 
(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 PERSONS 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 status of 
a missing member 
"(a) The Secretary concerned shall, upon the enlistment or 
appointment of a person in the armed forces, require that the 
person specify in writing the person or persons, if any, other than 
that person's primary next of kin or immediate family, to whom 
information on the whereabouts and status of the member shall 
be provided if such whereabouts and status are investigated under 
chapter 76 of this title. The Secretary shall periodically, and when-
ever the member is deployed as part of a contingency operation 
or in other circumstances specified by the Secretary, require that 
such designation be reconjfirmed, or modified, by the member. 
"(b) The Secretary concerned shall, upon the request of a mem-
ber, 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 chapter 
is amended by adding at the end the following new item: 
"655. Designation of persons having interest in status of a missing member.". 
5 u s e 5561 note. 
(e) ACCOUNTING FOR CIVILIAN EMPLOYEE AND CONTRACTORS 
OF THE UNITED STATES.—(1) The Secretary of State shall carry 
out a comprehensive study of the provisions of subchapter VII 
of chapter 55 of title 5, United States Code (commonly referred 
to as the "Missing Persons Act of 1942") (5 U.S.C. 5561 et seq.) 
and any other law or regulation establishing procedures for the 
accounting for of civilian employees of the United States or contrac-
tors of the United States who serve with or accompany the Armed 
Forces in the field. The purpose of the study shall be to determine 
the means, if any, by which those procedures may be improved. 
(2) The Secretary of State shall carry out the study required 
under paragraph (1) in consultation with the Secretary of Defense, 
the Secretary of Transportation, the Director of Central Intelligence, 
and the heads of such other departments and agencies of the 
United States as the President designates for that purpose. 
(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 involuntarily absent as a 
result of a hostile action, or under circumstances suggesting that 
the involuntary absence is a result of a hostile action, and whose 
status is undetermined or who is unaccounted for, including proce-
dures for— 
(A) search and rescue for the employee; 
(B) determining the status of the employee; 
(C) reviewing and changing the status of the employee; 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 353 
(D) determining the rights and benefits accorded to the 
family of the employee; and 
(E) maintaining and providing appropriate access to the 
records of the employee and the investigation into the status 
of the employee. 
(4) Not later than one year after the date of the enactment 
of this Act, the Secretary of State shall submit to the Committee 
on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on the study 
carried out by the Secretary under this subsection. The report 
shall include the recommendations, if any, of the Secretary for 
legislation to improve the procedures covered by the study. 
SEC. 570. ASSOCIATE DIRECTOR OF CENTRAL INTELLIGENCE FOR 
MILITARY SUPPORT. 
Section 102 of the National Security Act of 1947 (50 U.S.C. 
403) is amended by adding at the end the following: 
"(e) In the event that neither the Director nor Deputy Director 
of Central Intelligence is a commissioned officer of the Armed 
Forces, a commissioned officer of the Armed Forces appointed to 
the position of Associate Director of Central Intelligence for Military 
Support, while serving in such position, shall not be counted against 
the numbers and percentages of commissioned officers of the rank 
and grade of such officer authorized for the armed force of which 
such officer is a member.". 
Subtitle G—Support for Non-Department 
of Defense Activities 
Records. 
Reports. 
SEC. 571. REPEAL OF CERTAIN CIVIL-MILITARY PROGRAMS. 
(a) 
REPEAL OF CIVIL-MILITARY COOPERATIVE ACTION PRO-
GRAM.—^The following provisions of law are repealed: 
(1) Section 410 of title 10, United States Code. 
(2) Section 1081(a) of the National Defense Authorization 
Act for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 410 
note). 
(b) 
REPEAL OF RELATED PROVISION.—Section 
1045 
of 
the 
National Defense Authorization Act for Fiscal Year 1993 (Public 
Law 102-484; 10 U.S.C. 410 note), relating to a pilot outreach 
program to reduce demand for illegal drugs, is repealed. 
(c) TECHNICAL AND CONFORMING AMENDMENTS.—Chapter 2 0 
of title 10, United States Code, is amended— 
(1) by striking out the table of subchapters after the chapter 
heading; 
(2) by striking out the subchapter heading for subchapter 
I; and 
(3) by striking out the subchapter heading for subchapter 
II and the table of sections following that subchapter heading. 
SEC. 572. TRAINING ACTIVITIES RESULTING IN INCIDENTAL SUPPORT 
AND 
SERVICES FOR ELIGIBLE ORGANIZATIONS AND 
ACTIVITIES OUTSIDE THE DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—(1) Chapter 101 of title 10, United States 
Code, is amended by adding at the end the following new section: 
110 STAT. 354 
PUBLIC LAW 104-106—FEB. 10, 1996 
"§2012. Support and services for eligible organizations and 
activities outside Department of Defense 
Regulations. 
"(a) AUTHORITY T o PROVIDE SERVICES AND SUPPORT.—Under 
regulations prescribed by the Secretary of Defense, the Secretary 
of a military department may in accordance with this section 
authorize units or individual members of the armed forces under 
that Secretary's jurisdiction to provide support and services to non-
Department of Defense organizations and activities specified in 
subsection (e), but only if— 
"(1) such assistance is authorized by a provision of law 
(other than this section); or 
"(2) the provision of such assistance is incidental to military 
training. 
"(b) SCOPE OF COVERED ACTIVITIES SUBJECT TO SECTION.— 
This section does not— 
"(1) apply to the provision by the Secretary concerned, 
under regulations prescribed by the Secretary of Defense, of 
customary community relations and public affairs activities 
conducted in accordance with Department of Defense policy; 
or 
"(2) prohibit the Secretary concerned from encouraging 
members of the armed forces under the Secretary's jurisdiction 
to provide volunteer support for community relations activities 
under regulations prescribed by the Secretary of Defense. 
"(c) REQUIREMENT FOR SPECIFIC REQUEST.—^Assistance under 
subsection (a) may only be provided if— 
"(1) the assistance is requested by a responsible official 
of the organization to which the assistance is to be provided; 
and 
"(2) the assistance is not reasonably available from a 
commercial entity or (if so available) the official submitting 
the request for assistance certifies that the commercial entity 
that would otherwise provide such services has agreed to the 
provision of such services by the armed forces. 
"(d) RELATIONSHIP TO MILITARY TRAINING.—(1) Assistance 
under subsection (a) may only be provided if the following require-
ments are met: 
"(A) The provision of such assistance— 
"(i) in the case of assistance by a unit, will accomplish 
valid unit training requirements; and 
"(ii) in the case of assistance by an individual member, 
will involve tasks directly related to the specific military 
occupational specialty of the member. 
"(B) The provision of such assistance will not adversely 
affect the quality of training or otherwise interfere with the 
ability of a member or unit of the armed forces to perform 
the military functions of the member or unit. 
"(C) The provision of such assistance will not result in 
a significant increase in the cost of the training. 
"(2) Subparagraph (A)(i) of paragraph (1) does not apply in 
a case in which the assistance to be provided consists primarily 
of military manpower and the total amount of such assistance 
in the case of a particular project does not exceed 100 man-hours. 
"(e) ELIGIBLE ENTITIES.—The following organizations and activi-
ties are eligible for assistance under this section: 
"(1) Any Federal, regional, State, or local governmental 
entity. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 355 
"(2) Youth and charitable organizations specified in section 
508 of title 32. 
"(3) Any other entity as may be approved by the Secretary 
of Defense on a case-by-case basis. 
"(f) REGULATIONS.—The Secretary of Defense shall prescribe 
regulations governing the provision of assistance under this section. 
The regulations shall include the following: 
"(1) Rules governing the types of assistance that may be 
provided. 
"(2) Procedures governing the delivery of assistance that 
ensure, to the maximum extent practicable, that such assistance 
is provided in conjunction with, rather than separate from, 
civilian efforts. 
"(3) Procedures for appropriate coordination with civilian 
officials to ensure that the assistance— 
"(A) meets a valid need; and 
"(B) does not duplicate other available public services. 
"(4) Procedures to ensure that Department of Defense 
resources are not applied exclusively to the program receiving 
the assistance. 
"(g) ADVISORY COUNCILS.—(1) The Secretary of Defense shall 
encourage the establishment of advisory councils at regional. State, 
and local levels, as appropriate, in order to obtain recommendations 
and guidance concerning assistance under this section from persons 
who are knowledgeable about regional. State, and local conditions 
and needs. 
"(2) The advisory councils should include officials from relevant 
military organizations, representatives of appropriate local. State, 
and Federal agencies, representatives of civic and social service 
organizations, business representatives, and labor representatives. 
"(3) The Federal Advisory Committee Act (5 U.S.C. App.) shall 
not apply to such councils. 
"(h) CONSTRUCTION OF PROVISION.—Nothing in this section 
shall be construed as authorizing— 
"(1) the use of the armed forces for civilian law enforcement 
purposes or for response to natural or manmade disasters; 
or 
"(2) the use of Department of Defense personnel or 
resources for any program, project, or activity that is prohibited 
by law.". 
(b) CLERICAL AMENDMENT.—^The table of sections at the begin-
ning of such chapter is amended by adding at the end the following 
new item: 
"2012. Support and services for eligible organizations and activities outside Depart-
ment of Defense.". 
SEC. 573. NATIONAL GUARD CIVILIAN YOUTH OPPORTUNITIES PILOT 
32 USC 501 note. 
PROGRAM. 
(a) TERMINATION.—The authority under subsection (a) of section 
1091 of the National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484; 32 U.S.C. 501 note) to carry out a 
pilot program under that section is hereby continued through the 
end of the 18-month period beginning on the date of the enactment 
of this Act and such authority shall terminate as of the end of 
that period. 
(b) LIMITATION ON NUMBER OF PROGRAMS.—During the period 
beginning on the date of the enactment of this Act and ending 
110 STAT. 356 
PUBLIC LAW 104-106—FEB. 10, 1996 
on the termination of the pilot program under subsection (a), the 
number of programs carried out under subsection (d) of that section 
as part of the pilot program may not exceed the number of such 
programs as of September 30, 1995. 
10 u s e 2012 
SEC. 574. TERMINATION OF FUNDING FOR OFFICE OF CIVIL-MILITARY 
note. 
PROGRAMS IN OFFICE OF THE SECRETARY OF DEFENSE. 
No funds may be obligated or expended after the date of the 
enactment of this Act (1) for the office that as of the date of 
the enactment of this Act is designated, within the Office of the 
Assistant Secretary of Defense for Reserve Affairs, as the Office 
of Civil-Military Programs, or (2) for any other entity within the 
Office of the Secretary of Defense that has an exclusive or principal 
mission of providing centralized direction for activities under section 
2012 of title 10, United States Code, as added by section 572. 
TITLE VI—COMPENSATION AND OTHER 
PERSONNEL BENEFITS 
Subtitle A—Pay and Allowances 
37 u s e 1009 
SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1996. 
(a) 
RESCISSION OF PRIOR SECTION 1009 
ADJUSTMENT.—^The 
adjustment made as of January 1, 1996, pursuant to section 4 
of Executive Order No. 12984 (issued December 28, 1995), in ele-
ments of compensation of members of the uniformed services pursu-
ant to section 1009 of title 37, United States Code, is hereby 
rescinded. 
(b) INCREASE IN BASIC PAY AND BAS.—The rates of basic pay 
and basic allowance for subsistence of members of the uniformed 
services, as in effect on December 31, 1995, are hereby increased 
by 2.4 percent. 
(c) INCREASE IN BAQ.—^The rates of basic allowance for quarters 
of members of the uniformed services, as in effect on December 
31, 1995, are hereby increased by 5.2 percent. 
(d) EFFECTIVE DATE.—^This section shall take effect as of Janu-
ary 1, 1996. 
SEC. 602. LIMITATION ON BASIC ALLOWANCE FOR SUBSISTENCE FOR 
MEMBERS RESIDING WITHOUT DEPENDENTS IN GOVERN-
MENT QUARTERS. 
(a) PERCENTAGE LIMITATION.—Subsection (b) of section 402 of 
title 37, United States Code, is amended by adding after the last 
sentence the following new paragraph: 
"(4) In the case of enlisted members of the Army, Navy, Air 
Force, or Marine Corps who, when present at their permanent 
duty station, reside without dependents in Government quarters, 
the Secretary concerned may not provide a basic allowance for 
subsistence to more than 12 percent of such members under the 
jurisdiction of the Secretary concerned. The Secretary concerned 
may exceed such percentage if the Secretary determines that compli-
ance would increase costs to the Government, would impose finan-
cial hardships on members otherwise entitled to a basic allowance 
for subsistence, or would reduce the quality of life for such members. 
This paragraph shall not apply to members described in the first 
sentence when the members are not residing at their permanent 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 357 
duty station. The Secretary concerned shall achieve the percentage 
limitation specified in this paragraph as soon as possible after 
the date of the enactment of this paragraph, but in no case later 
than September 30, 1996.". 
(b) 
STYLISTIC 
AMENDMENTS.—Such 
subsection 
is 
further 
amended— 
(1) by redesignating paragraphs (1), (2), and (3) as subpara-
graphs (A), (B), and (C); 
(2) by inserting "(1)" after "(b)"; 
(3) by designating the text composed of the second, third, 
and fourth sentences as paragraph (2); and 
(4) by designating the text composed of the fifth and sixth 
sentences as paragraph (3). 
(c) CONFORMING AMENDMENTS.—(1) Subsection (e) of such sec-
tion is amended— 
(A) in paragraph (1), by striking out "the third sentence 
of subsection (b)" and inserting in lieu thereof "subsection 
(b)(2)"; and 
(B) in paragraph (2), by striking out "subsection (b)" and 
inserting in lieu thereof "subsection (b)(2)". 
(2) Section 1012 of title 37, United States Code, is amended 
by striking out "the last sentence of section 402(b)" and inserting 
in lieu thereof "section 402(b)(3)". 
(d) REPORT REQUIRED.—Not later than March 31, 1996, the 
Secretary of Defense shall submit to Congress a report identifying, 
for the Army, Navy, Air Force, and Marine Corps— 
(1) the number of members who reside without dependents 
in Government quarters at their permanent duty stations and 
receive a basic allowance for subsistence under section 402 
of title 37, United States Code; 
(2) such number as a percentage of the total number of 
members who reside without dependents in Government 
quarters; 
(3) a recommended maximum percentage of the members 
residing without dependents in Government quarters at their 
permanent duty station who should receive a basic allowance 
for subsistence; and 
(4) the reasons such maximum percentage is recommended. 
SEC. 603. 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 paragraph (2) 
and, as so designated, by striking out "However, subject" and 
inserting in lieu thereof "Subject"; and 
(3) by adding at the end the following new paragraph: 
"(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 jurisdiction of a uniformed service that 
does not meet such standards, may elect not to occupy such quarters 
or facility and instead to receive the basic allowance for quarters 
prescribed for the member's pay grade by this section.". 
110 STAT. 358 
PUBLIC LAW 104-106—FEB. 10, 1996 
37 use 403 note. 
(b) EFFECTIVE DATE.—^The amendments made by this section 
shall take effect on July 1, 1996. 
SEC. 604. PAYMENT OF BASIC ALLOWANCE FOR QUARTERS TO MEM-
BERS 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 insert-
ing in lieu thereof "E-5". 
37 use 403 note. 
(b) EFFECTIVE DATE.—^The amendments made by this section 
shall take effect on July 1, 1996. 
SEC. 605. LIMITATION ON REDUCTION OF VARIABLE HOUSING ALLOW-
ANCE FOR CERTAIN MEMBERS. 
(a) LIMITATION ON REDUCTION IN VHA.—(1) Subsection (c)(3) 
of section 403a of title 37, United States Code, is amended by 
adding at the end the following new sentence: "However, so long 
as a member of a uniformed service retains uninterrupted eligibility 
to receive a variable housing allowance within an area and the 
member's certified housing costs are not reduced (as indicated by 
certifications provided by the member under subsection (b)(4)), the 
monthly amount of a variable housing allowance under this section 
for the member within that area may not be reduced as a result 
of systematic adjustments required by changes in housing costs 
within that area.". 
(2) The amendment made by paragraph (1) shall apply for 
fiscal years after fiscal year 1995. 
(b) E F F E C T ON TOTAL AMOUNT AVAILABLE FOR VHA.—Sub-
section (d)(3) of such section is amended by inserting after the 
first sentence the following new sentence: "In addition, the total 
amount determined under paragraph (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 O N IMPLEMENTATION.—Not later than J u n e 1, 1996, 
the Secretary of Defense shall submit to Congress a report describ-
ing the procedures to be used to implement the amendments made 
by this section and the costs of such amendments. 
(d) RESOLVING VHA INADEQUACIES IN H I G H H O U S I N G 
C O S T 
AREAS.—If the Secretary of Defense determines that, despite the 
amendments made by this section, inadequacies exist in the provi-
sion of variable housing allowances under section 403 a of title 
37, United States Code, the Secretary shall submit to Congress 
a report containing a legislative proposal to address the inadequa-
cies. The Secretary shall make the determination required by this 
subsection and submit the report, if necessary, not later than May 
31, 1996. 
SEC 606. CLARIFICATION OF LIMITATION ON ELIGIBILITY FOR FAM-
ILY SEPARATION ALLOWANCE. 
Section 427(b)(4) of title 37, United States Code, is amended 
in the first sentence by inserting "paragraph (1)(A) o f after "not 
entitled to an allowance under". 
Applicability. 
37 u s e 403a 
note. 
Reports. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 359 
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 "Septem-
ber 30, 1996" and inserting in lieu thereof "September 30, 1997". 
(b) SELECTED RESERVE ENLISTMENT BONUS.—Section 308c(e) 
of title 37, United States Code, is amended by striking out "Septem-
ber 30, 1996" and inserting in lieu thereof "September 30, 1997". 
(c) SELECTED RESERVE AFFILIATION BONUS.—Section 308e(e) 
of title 37, United States Code, is amended by striking out "Septem-
ber 30, 1996" and inserting in lieu thereof "September 30, 1997". 
(d) READY RESERVE ENLISTMENT AND REENLISTMENT 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 striking 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, REGISTERED NURSES, AND 
NURSE ANESTHETISTS. 
(a) NURSE OFFICER CANDIDATE ACCESSION PROGRAM.—Section 
2130a(a)(l) of title 10, United States Code, is amended by striking 
out "September 30, 1996" and inserting in lieu thereof "September 
30, 1997". 
(b) 
ACCESSION BONUS FOR REGISTERED 
NURSES.—Section 
302d(a)(l) of title 37, United States Code, is amended by striking 
out "September 30, 1996" and inserting in lieu thereof "September 
30, 1997". 
(c) INCENTIVE SPECIAL PAY FOR NURSE ANESTHETISTS.—Section 
302e(a)(l) of title 37, United States Code, is amended by striking 
out "September 30, 1996" and inserting in lieu thereof "September 
30, 1997". 
SEC. 613. EXTENSION OF AUTHORITY RELATING TO PAYMENT OF 
OTHER BONUSES AND SPECIAL PAYS. 
(a) AVIATION OFFICER RETENTION BONUS.—Section 301b(a) of 
title 37, United States Code, is amended by striking out "September 
30, 1995," 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 PRIORITY 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". 
110 STAT. 360 
PUBLIC LAW 104-106—FEB. 10, 1996 
(e) 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 "September 30, 1997". 
(f) NUCLEAR CAREER ACCESSION BONUS.—Section 312b(c) of 
title 37, United States Code, is amended by striking out "September 
30, 1996" and inserting in lieu thereof "September 30, 1997". 
(g) 
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". 
(h) 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". 
37 use 3016 
(i) COVERAGE OF PERIOD OF LAPSED AGREEMENT AUTHORITY.— 
note. 
(1) In the case of an officer described in section 301b(b) of title 
37, United States Code, who executes an agreement described in 
paragraph (2) during the 90-day period beginning on the date 
of the enactment of this Act, the Secretary concerned may treat 
the agreement for purposes of the retention bonus authorized under 
the agreement as having been executed and accepted on the first 
date on which the officer would have qualified for such an agree-
ment had the amendment made by subsection (a) taken effect 
on October 1, 1995. 
(2) An agreement referred to in this subsection is a service 
agreement with the Secretary concerned that is a condition for 
the payment of a retention bonus under section 301b of title 37, 
United States Code. 
(3) For purposes of this subsection, the term "Secretary con-
cerned" has the meaning given that term in section 101(5) of title 
37, United States Code. 
SEC. 614. CODIFICATION AND EXTENSION OF SPECIAL PAY FOR CRITI-
CALLY SHORT WARTIME HEALTH SPECIALISTS IN THE 
SELECTED RESERVES. 
(a) SPECIAL PAY AUTHORIZED.—(1) Chapter 5 of title 37, United 
States Code, is amended by inserting after section 302f the following 
new section: 
"§302g. Special pay: Selected Reserve health care profes-
sionals in critically short wartime specialties 
"(a) SPECIAL PAY AUTHORIZED.—^An officer of a reserve compo-
nent of the armed forces described in subsection (b) who executes 
a written agreement under which the officer agrees to serve in 
the Selected Reserve of an armed force for a period of not less 
than one year nor more than three years, beginning on the date 
the officer accepts the award of special pay under this section, 
may be paid special pay at an annual rate not to exceed $10,000. 
"(b) ELIGIBLE OFFICERS.—^An officer referred to in subsection 
(a) is an officer in a health care profession who is qualified in 
a specialty designated by regulations as a critically short wartime 
specialty. 
"(c) TIME FOR PAYMENT.—Special pay under this section shall 
be paid annually at the beginning of each twelve-month period 
for which the officer has agreed to serve. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 361 
"(d) REFUND REQUIREMENT.—^An officer who voluntarily termi-
nates service in the Selected Reserve of an armed force before 
the end of the period for which a payment was made to such 
officer under this section shall refund to the United States the 
full amount of the payment made for the period on which the 
payment was based. 
"(e) iNAPPLiCABiLi-n' OF DISCHARGE IN BANKRUPTCY.—^A dis-
charge in bankruptcy under title 11 that is entered less than 
five years after the termination of an agreement under this section 
does not discharge the person receiving special pay under the agree-
ment from the debt arising under the agreement. 
"(D TERMINATION OF AGREEMENT AUTHORITY.—No agreement 
under this section may be entered into after September 30, 1997.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 302f 
the following new item: 
"302g. Special pay: Selected Reserve health care professionals in critically short 
wartime specialties.". 
(b) CONFORMING AMENDMENT.—Section 303a of title 37, United 
States Code, is amended by striking out "302, 302a, 302b, 302c, 
302d, 302e," each place it appears and inserting in lieu thereof 
"302 through 302g,". 
(c) 
CONFORMING REPEAL.—(1) 
Defense Authorization Act, Fiscal 
456; 37 U.S.C. 302 note) is repealed. 
(2) The provisions of section 613 of the National Defense 
37 USC 302 note. 
Authorization Act, Fiscal Year 1989, as in effect on the day before 
the date of the enactment of this Act, shall continue to apply 
to agreements entered into under such section before such date. 
SEC. 615. HAZARDOUS DUTY INCENTIVE PAY FOR WARRANT OFFI-
CERS AND ENLISTED MEMBERS SERVING AS AIR WEAPONS 
CONTROLLERS. 
(a) INCLUSION OF ^^DITIONAL MEMBERS.—Subsection (a)(ll) 
of section 301 of title 37, United States Code, is amended by 
striking out "an officer (other than a warrant officer)" and inserting 
in lieu thereof "a member". 
(b) CALCULATION OF HAZARDOUS DUTY INCENTIVE PAY.—^The 
table in subparagraph (A) of subsection (c)(2) of such section is 
amended to read as follows: 
Section 613 of the National 
Year 1989 (Public Law 100-
"Pay 
grade 
"0-7 
and 
above 
"0-6 
"0-5 
"0-4 
"0-3 
"0-2 
"0-1 
"W-4 
"W-3 
"W-2 
"W-1 
"E-9 
"E-8 
"E-7 
"E-6 
"E-5 
"E-4 
and 
below 
Years 
o
f 
s
e
r
v
i
c
e 
as 
an 
a
i
r 
weapons 
c
o
n
t
r
o
l
l
e
r 
2 
or 
l
e
s
s 
$200 
225 
200 
175 
125 
125 
125 
200 
175 
150 
100 
200 
200 
175 
156 
125 
125 
Over 
2 
$200 
250 
250 
225 
156 
156 
156 
225 
225 
200 
125 
225 
225 
200 
175 
156 
156 
Overs 
$200 
300 
300 
275 
188 
188 
188 
275 
275 
250 
150 
250 
250 
225 
200 
175 
175 
Over 
4 
$200 
325 
325 
300 
206 
206 
206 
300 
300 
275 
175 
275 
275 
250 
225 
188 
188 
Over 
6 
$200 
350 
350 
350 
350 
250 
250 
325 
325 
325 
325 
300 
300 
275 
250 
200 
200 
Over 
8 
$200 
350 
350 
350 
350 
300 
250 
325 
325 
325 
325 
300 
300 
275 
250 
200 
200 
Over 
10 
$200 
350 
350 
350 
350 
300 
250 
325 
325 
325 
325 
300 
300 
275 
250 
200 
200 
29-194 O - 96 - 13 : QL 3 Part 1 
110 STAT. 362 
PUBLIC LAW 104-106—FEB. 10, 1996 
"
P
a
y 
grade— 
C
o
n
t
i
n
u
e
d 
"0-7 
and 
above 
"0-6 
"0-5 
"0-4 
"0-3 
"0-2 
"0-1 
"W-4 
"W-3 
"W-2 
"W-1 
"E-9 
"E-8 
"E-7 
"E-6 
"E-5 
"E-4 
and 
below .
. 
Years 
o
f 
s
e
r
v
i
c
e 
as 
an 
a
i
r 
weapons 
controller—Continued 
Over 
12 
$200 
350 
350 
350 
350 
300 
250 
325 
325 
325 
325 
300 
300 
300 
300 
250 
200 
Over 
14 
$200 
350 
350 
350 
350 
300 
250 
325 
325 
325 
325 
300 
300 
300 
300 
250 
200 
Over 
16 
$200 
350 
350 
350 
350 
300 
250 
325 
325 
325 
325 
300 
300 
300 
300 
250 
200 
Over 
18 
$200 
350 
350 
350 
300 
275 
245 
325 
325 
325 
325 
300 
300 
300 
300 
250 
200 
Over 
20 
$200 
300 
300 
300 
275 
245 
210 
276 
325 
275 
275 
275 
265 
265 
265 
225 
175 
Over 
22 
$200 
250 
250 
250 
250 
210 
200 
250 
250 
250 
250 
230 
230 
230 
230 
200 
150 
Over 
24 
$200 
250 
250 
250 
225 
200 
180 
225 
225 
225 
225 
200 
200 
200 
200 
175 
125 
Over 
25 
$110 
225 
225 
225 
200 
180 
150 
200 
200 
200 
200 
200 
200 
200 
200 
150 
125". 
(c) CONFORMING AMENDMENTS.—Subsection (c)(2) of such sec-
tion is further amended— 
(1) by striking out "an officer" each place it appears and 
inserting in lieu thereof "a member"; and 
(2) by striking out "the officer" each place it appears and 
inserting in lieu thereof "the member". 
SEC. 616. AVIATION CAREER INCENTIVE PAY. 
(a) YEARS OF OPERATIONAL FLYING DUTIES REQUIRED.—Para-
graph (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 follow-
ing new sentence: "The Secretary concerned may not delegate the 
authority in the preceding sentence to permit the payment of incen-
tive pay under this subsection.". 
SEC. 617. CLARIFICATION OF AUTHORITY TO PROVIDE SPECIAL PAY 
FOR NURSES. 
Section 302c(d)(l) of title 37, United States Code, is amended— 
(1) by striking out "or" after "Air Force,"; and 
(2) by inserting before the semicolon the following: ", an 
officer of the Nurse Corps of the Army or Navy, or an officer 
of the Air Force designated as a nurse". 
SEC. 618. CONTINUOUS ENTITLEMENT TO CAREER SEA PAY FOR 
CREW MEMBERS OF SHIPS DESIGNATED AS TENDERS. 
Subparagraph (A) of section 305a(d)(l) of title 37, United States 
Code, is amended to read as follows: 
"(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 tender-class ship 
(with the hull classification of submarine or destroyer); 
or". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 363 
SEC. 619. INCREASE IN MAXIMUM RATE OF SPECIAL DUTY ASSIGN-
MENT PAY FOR 
ENLISTED 
MEMBERS 
SERVING AS 
RECRUITERS. 
(a) SPECIAL MAXIMUM RATE FOR RECRUITERS.—Section 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 subsection on account of such duty, 
the Secretary concerned may increase the monthly rate of special 
duty assignment pay for the member to not more than $375.". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
37 use 307 note, 
shall take effect on January 1, 1996. 
Subtitle C—Travel and Transportation 
Allowances 
SEC. 621. REPEAL OF REQUIREMENT REGARDING CALCULATION OF 
ALLOWANCES ON BASIS OF MILEAGE TABLES. 
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 
W H E N 
EVACUATION 
AUTHORIZED 
B U T 
N O T 
ORDERED.—Section 405a(a) of title 37, United States Code, is 
amended by striking out "ordered" each place it appears and insert-
ing in lieu thereof "authorized or ordered". 
(b) APPLICATION OF AMENDMENT.—The amendment made by 
37USC405a 
subsection (a) shall apply with respect to persons authorized or 
"ote. 
ordered to depart as described in section 405a(a) of title 37, United 
States Code, on or after October 1, 1995. 
SEC. 623. TRANSPORTATION OF NONDEPENDENT CHILD FROM MEM-
BER'S STATION OVERSEAS AFTER LOSS OF DEPENDENT 
STATUS WHILE OVERSEAS. 
Section 406(h)(1) of title 37, United States Code, is amended 
in the last sentence— 
(1) by striking out "who became 21 years of age" and 
inserting in lieu thereof "who, by reason of age or graduation 
from (or cessation of enrollment in) an institution of higher 
education, would otherwise cease to be a dependent of the 
member"; and 
(2) by inserting "still" after "shall". 
SEC. 624. AUTHORIZATION OF DISLOCATION ALLOWANCE FOR MOVES 
IN CONNECTION WITH BASE REALIGNMENTS AND CLO-
SURES. 
(a) DISLOCATION ALLOWANCE AUTHORIZED.—Subsection (a) of 
section 407 of title 37, United States Code, is amended— 
(1) by striking out "or" at the end of paragraph (3); 
(2) by striking out the period at the end of paragraph 
(4)(B) and inserting in lieu thereof"; or"; and 
(3) by inserting after paragraph (4)(B) the following new 
paragraph: 
110 STAT. 364 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(5) the member is ordered to move in connection with 
the closure or realignment of a military installation and, as 
a result, the member's dependents actually move or, in the 
case of a member without dependents, the member actually 
moves.". 
(b) CONFORMING AMENDMENTS.—(1) The last sentence of such 
subsection is amended— 
(A) by striking out "clause (3) or (4)(B)" and inserting 
in lieu thereof "paragraph (3) or (4)(B)"; and 
(B) by striking out "clause (1)" and inserting in lieu thereof 
"paragraph (1) or (5)". 
(2) Subsection (b) of such section is amended— 
(A) by striking out "subsection (a)(3) or (a)(4)(B)" in the 
first sentence and inserting in lieu thereof "paragraph (3) or 
(4)(B) of subsection (a)"; and 
(B) by striking out "subsection (a)(1)" in the second sentence 
and inserting in lieu thereof "paragraph (1) or (5) of subsection 
(a)". 
Subtitle D—Retired Pay, Survivor Benefits, 
and Related Matters 
SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING 
ADJUSTMENTS FOR FISCAL YEARS 1996, 1997, AND 1998. 
(a) ADJUSTMENT OF EFFECTIVE DATES.—Subparagraph (B) of 
section 1401a(b)(2) of title 10, United States Code, is amended 
to read as follows: 
"(B) SPECIAL RULES FOR FISCAL YEARS leee AND I998.— 
"(i) FISCAL YEAR 1996.—In the case of the increase 
in retired pay that, pursuant to paragraph (1), becomes 
effective on December 1, 1995, the initial month for 
which such increase is payable as part of such retired 
pay shall (notwithstanding such December 1 effective 
date) be March 1996. 
"(ii) FISCAL YEAR 1998.—In the case of the increase 
in retired pay that, pursuant to paragraph (1), becomes 
effective on December 1, 1997, the initial month for 
which such increase is payable as part of such retired 
pay shall (notwithstanding such December 1 effective 
date) be September 1998.". 
1
0 use 1401a 
(b) CONTINGENT ALTERNATIVE DATE FOR FISCAL YEAR 1998.— 
iiote. 
(1) If a civil service retiree cola that becomes effective during 
fiscal year 1998 becomes effective on a date other than the date 
on which a military retiree cola during that fiscal year is specified 
to become effective under subparagraph (B) of section 1401a(b)(2) 
of title 10, United States Code, as amended by subsection (a), 
then the increase in military retired and retainer pay shall become 
payable as part of such retired and retainer pay effective on the 
same date on which such civil service retiree cola becomes effective 
(notwithstanding the date otherwise specified in such subparagraph 
(B)). 
(2) Paragraph (1) does not apply with respect to the retired 
pay of a person retired under chapter 61 of title 10, United States 
Code. 
(3) For purposes of this subsection: 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 365 
(A) The term "civil service retiree cola" means an increase 
in annuities under the Civil Service Retirement System either 
under section 8340(b) of title 5, United States Code, or pursuant 
to a law providing a general increase in such annuities. 
(B) The term "military retiree cola" means an adjustment 
in retired and retainer pay pursuant to section 1401a(b) of 
title 10, United States Code. 
(c) 
REPEAL 
OF PRIOR 
CONDITIONAL 
ENACTMENT.—Section 
8114A(b) of PubUc Law 103-335 (108 Stat. 2648) is repealed. 
SEC. 632. DENIAL OF NON-REGULAR 
SERVICE RETIRED PAY FOR 
RESERVES RECEIVING CERTAIN COURT-MARTIAL 
SEN-
TENCES. 
(a) IN GENERAL.—(1) Chapter 1223 of title 10, United States 
Code, is amended by adding at the end the following new section: 
"§ 12740. Eligibility: denial upon certain punitive discharges 
or dismissals 
"A person who— 
"(1) is convicted of an offense under the Uniform Code 
of Military Justice (chapter 47 of this title) and whose sentence 
includes death; or 
"(2) is separated pursuant to sentence of a court-martial 
with 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.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"12740. Eligibility: denial upon certain punitive discharges or dismissals.". 
(b) EFFECTIVE DATE.—Section 12740 of title 10, United States 
Code, as added by subsection (a), shall apply with respect to court-
martial sentences adjudged after the date of the enactment of 
this Act. 
SEC. 633. REPORT ON PAYMENT OF ANNUITIES FOR CERTAIN MILI-
TARY SURVIVING SPOUSES. 
(a) STUDY REQUIRED.—(1) The Secretary of Defense shall con-
duct a study to determine the number of potential beneficiaries 
there would be if Congress were to enact authority for the Secretary 
of the military department concerned to pay an Einnuity to the 
qualified surviving spouse of each member of the Armed Forces 
who— 
(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 who died during 
the period beginning on September 21, 1972, and ending on 
October 1, 1978, and at the time of death would have been 
entitled to retired pay imder chapter 67 of title 10, United 
States Code, but for the fact that he was under 60 years 
of age. 
(2) A qualified surviving spouse for purposes of paragraph 
(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.—As part of the study under 
subsection (a), the Secretary shall determine the following: 
10 use 1401a, 
1401a note. 
10 use 12740 
note. 
110 STAT. 366 
PUBLIC LAW 104-106—FEB. 10, 1996 
(1) The number of unremarried surviving spouses of 
deceased members and deceased former members of the Armed 
Forces referred to in subparagraph (A) of subsection (a)(1) 
who would be eligible for an annuity under authority described 
in such subsection. 
(2) The number of unremarried surviving spouses of 
deceased members and deceased former members of reserve 
components 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 mem-
ber referred to in subsection (a)( 1). 
(c) REPORT.—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 National Security of the House of 
Representatives a report on the results of the study under this 
section. The Secretary shall include in the report a recommendation 
on the amount of the annuity that should be authorized to be 
paid under any authority described in subsection (a)(1), together 
with a recommendation on whether the annuity should be adjusted 
annually to offset increases in the cost of living. 
SEC. 634. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOW-
ANCES TO WORLD WAR II VETERANS WHO SERVED AS 
GUERRILLA FIGHTERS IN THE PHILIPPINES. 
(a) IN GENERAL.—^The Secretary of the military department 
concerned shall pay, upon request, to an individual described in 
subsection (b) the amount determined with respect to that individ-
ual under subsection (c). 
(b) COVERED INDIVIDUALS.—^A payment under subsection (a) 
shall be made to any individual who as a member of the Armed 
Forces during World War II— 
(1) was captured on the Island of Bataan in the territory 
of the Philippines by Japanese forces; 
(2) participated in the Bataan Death March; 
(3) escaped from captivity; and 
(4) served as a guerrilla fighter in the Philippines during 
the period from January 1942 through February 1945. 
(c) AMOUNT TO BE PAID.—^The amount of a payment under 
subsection (a) shall be the amount of quarters and subsistence 
allowance which accrued to an individual described in subsection 
(b) during the period specified in paragraph (4) of subsection (b) 
and which was not paid to that individual. The Secretary shall 
apply interest compounded at the three-month Treasury bill rate. 
(d) PAYMENT TO SURVIVORS.—In the case of any individual 
described in subsection (b) who is deceased, payment under this 
section with respect to that individual shall be made to that individ-
ual's nearest surviving relative, as determined by the Secretary 
concerned. 
10 u s e 1448 
SEC. 635. AUTHORITY FOR RELIEF FROM PREVIOUS OVERPAYMENTS 
note. 
UNDER MINIMUM INCOME WIDOWS PROGRAM. 
(a) AUTHORITY.—The Secretary of Defense may waive recovery 
by the United States of any overpayment by the United States 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 367 
described in subsection (b). In the case of any such waiver, any 
debt to the United States arising from such overpayment is forgiven, 
(b) COVERED OVERPAYMENTS.—Subsection (a) apphes in the 
case of an overpayment by the United States that— 
(1) was made before the date of the enactment of this 
Act under section 4 of Public Law 92-425 (10 U.S.C. 1448 
note); and 
(2) is attributable to failure by the Department of Defense 
to apply the eligibility provisions of subsection (a) of such 
section in the case of the person to whom the overpayment 
was made. 
SEC. 636. TRANSITIONAL COMPENSATION FOR DEPENDENTS OF MEM-
BERS OF THE ARMED FORCES SEPARATED FOR DEPEND-
ENT ABUSE. 
(a) COVERAGE OF PROGRAM.—Subsection (a) of section 1059 
of title 10, United States Code, is amended by adding at the end 
the following: "Upon establishment of such a program, the program 
shall apply in the case of each such member described in subsection 
(b) who is under the jurisdiction of the Secretary establishing the 
program.". 
(b) CLARIFICATION OF PAYMENT TO DEPENDENTS OF MEMBERS 
NOT DISCHARGED.—Subsection (d) of such section is amended— 
(1) in the matter preceding paragraph (1)— 
(A) by striking out "any case of a separation from 
active duty as described in subsection (b)" and inserting 
in lieu thereof "the case of any individual described in 
subsection (b)"; and 
(B) by striking "former member" and inserting in lieu 
thereof "individual"; 
(2) in paragraph (1)— 
(A) by striking out "former member" and inserting 
in lieu thereof "individual"; and 
(B) by striking out "member" and inserting in lieu 
thereof "individual"; 
(3) in paragraph. (2), by striking out "former member" both 
places it appears £ind inserting in lieu thereof "individual 
described in subsection (b)"; 
(4) in paragraph (3), by striking out "former member" and 
inserting in lieu thereof "individual described in subsection 
(b)"; and 
(5) in paragraph (4), by striking out "member" both places 
it appears and inserting in lieu thereof "individual described 
in subsection (b)". 
(c) EFFECTIVE DATE.—Section 554(b) of the National Defense 
Authorization Act for Fiscal Year 1994 (10 U.S.C. 1059 note) is 
amended— 
(1) in paragraph (1), by striking out "on or after the date 
of the enactment of this Act" and inserting in lieu thereof 
"after November 29, 1993"; and 
(2) by striking out paragraph (2) and inserting in lieu 
thereof the following: 
"(2) Payments of transitional compensation under that section 
in the case of any person eligible to receive payments under that 
section shall be made for each month after November 1993 for 
which that person may be paid transitional compensation in accord-
ance with that section.". 
110 STAT. 368 
PUBLIC LAW 104-106—FEB. 10, 1996 
Subtitle E—Other Matters 
SEC. 641. PAYMENT TO SURVIVORS OF DECEASED MEMBERS FOR ALL 
LEAVE ACCRUED. 
(a) INAPPLICABILITY OF 60-DAY LIMITATION.—Section 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 heu 
thereof the following new paragraph: 
"(2) The limitations in the second sentence of subsection (b)(3), 
subsection (f), and the second sentence of subsection (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. 642. REPEAL OF REPORTING REQUIREMENTS REGARDING COM-
PENSATION MATTERS. 
(a) REPORT ON TRAVEL AND TRANSPORTATION ALLOWANCES FOR 
DEPENDENTS.—(1) Section 406 of title 37, United States Code, is 
amended— 
(A) by striking out subsection (i); and 
(B) by redesignating subsections (j), (k), (1), (m), and (n) 
as subsections (i), (j), (k), (1), and (m), respectively. 
(2) Section 2634(d) of title 10, United States Code, is amended 
by striking out "section 406(1) of title 37" and inserting in lieu 
thereof "section 406(k) of title 37". 
(b) ANNUAL REVIEW OF PAY AND ALLOWANCES.—Section 1008(a) 
of title 37, United States Code, is amended by striking out the 
second sentence. 
(c) REPORT ON QUADRENNIAL REVIEW OF ADJUSTMENTS IN COM-
PENSATION.—Section 1009(f) of such title is amended by striking 
out "of this title," and all that follows through the period at the 
end and inserting in lieu thereof "of this title.". 
SEC. 643. RECOUPMENT OF ADMINISTRATIVE EXPENSES IN GARNISH-
MENT 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) Such regulations shall provide that an agency's administra-
tive costs incurred 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 concerned pursuant to the 
legal process.". 
(b) INVOLUNTARY ALLOTMENTS OF PAY OF MEMBERS OF THE 
UNIFORMED SERVICES.—Subsection (k) of such section is amended— 
(1) by redesignating paragraph (3) as paragraph (4); and 
(2) by inserting after paragraph (2) the following new 
paragraph: 
"(3) Regulations under this subsection may also provide that 
the administrative costs incurred in establishing and maintaining 
an involuntary allotment be deducted from the amount withheld 
from the pay of the member of the uniformed services concerned 
pursuant to such regulations.". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 369 
(c) DISPOSITION OF AMOUNTS WITHHELD FOR ADMINISTRATIVE 
EXPENSES.—Such section is further amended by adding at the end 
the following: 
"(1) The amount of an agency's administrative costs deducted 
under regulations prescribed pursuant to subsection (j)(2) or (k)(3) 
shall be credited to the appropriation, fund, or account from which 
such administrative costs were paid.". 
SEC. 644. REPORT ON EXTENDING TO JUNIOR NONCOMMISSIONED 
OFFICERS PRIVILEGES PROVIDED FOR SENIOR NON-
COMMISSIONED OFFICERS. 
(a) REPORT REQUIRED.—Not later than February 1, 1996, the 
Secretary of Defense shall submit to Congress a report containing 
the determinations of the Secretary regarding whether, in order 
to improve the working conditions of noncommissioned officers in 
pay grades E-5 and E-6, any of the privileges afforded noncommis-
sioned officers 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 
ELECTION 
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 privilege 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 contain 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 extend-
ing the additional privileges. 
(3) The options for extending the privileges on an incremen-
tal 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 extension of a privilege 
as determined appropriate under subsection (a). 
SEC. 645. STUDY REGARDING JOINT PROCESS FOR DETERMINING 
LOCATION OF RECRUITING STATIONS. 
(a) STUDY REQUIRED.—The Secretary of Defense shall conduct 
a study regarding the feasibility of— 
(1) using a joint process among the Armed Forces for deter-
mining the location of recruiting stations and the number of 
military personnel required to operate such stations; and 
(2) basing such determinations on market research and 
analysis conducted jointly by the Armed Forces. 
(b) REPORT.—Not later than March 31, 1996, the Secretary 
of Defense shall submit to Congress a report describing the results 
of the study. The report shall include a recommended method 
for measuring the efficiency of individual recruiting stations, such 
as cost per accession or other efficiency standard, as determined 
by the Secretary. 
SEC. 646. A U T O M A T I C MAXIMUM COVERAGE UNDER SERVICEMEN'S 
GROUP LIFE INSURANCE. 
Effective April 1, 1996, section 1967 of title 38, United States 
Effective date. 
Code, is amended— 
110 STAT. 370 
PUBLIC LAW 104-106—FEB. 10, 1996 
(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 
(3) by redesignating subsection (f) as subsection (e). 
SEC. 647. TERMINATION OF SERVICEMEN'S GROUP LIFE INSURANCE 
FOR MEMBERS OF THE READY RESERVE WHO FAIL TO 
PAY PREMIUMS. 
(a) AUTHORITY.—Section 1969(a)(2) of title 38, United States 
Code, is amended— 
(1) by inserting "(A)" after "(2)"; and 
(2) by adding at the end the following: 
"(B) If an individual who is required pursuant to subparagraph 
(A) to make a direct remittance of costs to the Secretary concerned 
fails to make the required remittance within 60 days of the date 
on which such remittance is due, such individual's insurance with 
respect to which such remittance is required shall be terminated 
Notice. 
by the Secretary concerned. Such termination shall be made by 
Effective date. 
written notice to the individual's official address and shall be effec-
tive 60 days after the date of such notice. Such termination of 
insurance may be vacated if, before the effective date of termination, 
the individual remits all amounts past due for such insurance 
and demonstrates to the satisfaction of the Secretary concerned 
that the failure to make timely remittances was justifiable.". 
(b) CONFORMING AMENDMENT.—Section 1968(a) is amended by 
inserting "(or discontinued pursuant to section 1969(a)(2)(B) of this 
title)" in the matter preceding paragraph (1) after "upon the written 
request of the insured". 
38 use 1968 
(c) EFFECTIVE DATE.—The amendments made by this section 
note. 
shall take effect on April 1, 1996. 
TITLE VII—HEALTH CARE PROVISIONS 
Subtitle A—^Health Care Services 
SEC. 701. MODIFICATION OF REQUIREMENTS REGARDING ROUTINE 
PHYSICAL EXAMINATIONS AND IMMUNIZATIONS 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 Secretary of 
Defense may prescribe regarding the content of health pro-
motion 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 immunizations or with diagnostic or 
preventive pap smears and mammograms;". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 371 
SEC. 702. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL 
CARE AND DEATH AND DISABILITY BENEFITS FOR CER-
TAIN RESERVES. 
(a) MEDICAL AND DENTAL CARE.—Section 1074a(a) of title 10, 
United States Code, is amended by adding at the end the following 
new paragraph: 
"(3) Each member of the armed forces who incurs or aggra-
vates an injury, illness, or disease in the line of duty while 
remaining overnight, between successive periods of inactive-
duty training, at or in the vicinity of the site of the inactive-
duty training, if the site is outside reasonable commuting 
distance from the member's residence.". 
(b) RECOVERY, CARE, AND DISPOSITION OF REMAINS.—Section 
1481(a)(2) of title 10, United States Code, is amended— 
(1) in subparagraph (C), by striking out "or" at the end 
of the subparagraph; 
(2) by redesignating subparagraph (D) as subparagraph 
(E); and 
(3) by inserting after subparagraph (C) the following new 
subparagraph: 
"(D) remaining overnight, between successive periods 
of inactive-duty training, at or in the vicinity of the site 
of the inactive-duty training, if the site is outside reason-
able commuting distance from the member's residence; or". 
(c) ENTITLEMENT TO BASIC PAY.—(1) Subsection (g)(1) of section 
204 of title 37, United States Code, is amended— 
(A) in subparagraph (B), by striking out "or" at the end 
of the subparagraph; 
(B) in subparagraph (C), by striking out the period at 
the end of the subparagraph and inserting in lieu thereof 
"; or"; and 
(C) by inserting after subparagraph (C) the following new 
subparagraph: 
"(D) in line of duty while remaining overnight, between 
successive periods of inactive-duty training, at or in the vicinity 
of the site of the inactive-duty training, if the site is outside 
reasonable commuting distance from the member's residence.". 
(2) Subsection (h)( 1) of such section is amended— 
(A) in subparagraph (B), by striking out "or" at the end 
of the subparagraph; 
(B) in subparagraph (C), by striking out the period at 
the end of the subparagraph and inserting in lieu thereof 
"; or"; and 
(C) by inserting after subparagraph (C) the following new 
subparagraph: 
"(D) in line of duty while remaining overnight, between 
successive periods of inactive-duty training, at or in the vicinity 
of the site of the inactive-duty training, if the site is outside 
reasonable commuting distance from the member's residence.". 
(d) 
COMPENSATION FOR INACTIVE-DUTY TRAINING.—Section 
206(a)(3) of title 37, United States Code, is amended— 
(1) in subparagraph (A), by striking out "or" at the end 
of clause (ii); 
(2) in subparagraph (B), by striking out the period at 
the end of the subparagraph and inserting in lieu thereof 
"; or"; and 
110 STAT. 372 
PUBLIC LAW 104-106—FEB. 10, 1996 
(3) by inserting after subparagraph (B) the following new 
subparagraph: 
"(C) in line of duty while remaining overnight, between 
successive periods of inactive-duty training, at or in the 
vicinity of the site of the inactive-duty training, if the 
site is outside reasonable commuting distance from the 
member's residence.". 
SEC. 703. MEDICAL CARE FOR SURVIVmG DEPENDENTS OF RETIRED 
RESERVES WHO DIE BEFORE AGE 60. 
(a) CHANGE IN ELIGIBILITY REQUIREMENTS.—Paragraph (2) of 
section 1076(b) of title 10, United States Code, is amended— 
(1) by striking out "death (A) would" and inserting in 
lieu thereof "death would"; and 
(2) by striking out ", and (B) had elected to participate 
in the Survivor Benefit Plan estalDlished under subchapter II 
of chapter 73 of this title". 
(b) CONFORMING AMENDMENTS.—Such paragraph is further 
amended— 
(1) in the matter following paragraph (2), by striking out 
"clause (2)" the first place it appears and inserting in lieu 
thereof "paragraph (2)"; and 
(2) by striking out the second sentence. 
SEC. 704. MEDICAL AND DENTAL CARE FOR MEMBERS OF THE 
SELECTED RESERVE ASSIGNED TO EARLY DEPLOYING 
UNITS OF THE ARMY SELECTED RESERVE. 
(a) ANNUAL MEDICAL AND DENTAL SCREENINGS AND CARE.— 
Section 1074a of title 10, United States Code, is amended— 
(1) in subsection (c), by striking out "this section" and 
inserting in lieu thereof "subsection (b)"; and 
(2) by adding at the end the following new subsection: 
"(d)(1) The Secretary of the Army shall provide to members 
of the Selected Reserve of the Army who are assigned to units 
scheduled for deplo3niient within 75 days after mobilization the 
following medical and dental services: 
"(A) An annual medical screening. 
"(B) For members who are over 40 years of age, a full 
physical examination not less often than once every two years. 
"(C) An annual dental screening. 
"(D) The dental care identified in an annual dental screen-
ing as required to ensure that a member meets the dental 
standards required for deployment in the event of mobilization. 
"(2) The services provided under this subsection shall be pro-
vided at no cost to the member.". 
10 use 10105 
(b) CONFORMING REPEALS.—Sections 1117 and 1118 of the Army 
note. 
National Guard Combat Readiness Reform Act of 1992 (title XI 
of Public Law 102-484; 10 U.S.C. 3077 note) are repealed. 
SEC. 
705. DENTAL INSURANCE FOR MEMBERS OF THE SELECTED 
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 Secretary of Defense 
shall establish a dental insurance plan for members of the Selected 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 373 
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 Regulations. 
be administered under regulations prescribed by the Secretary of 
Defense. 
"(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 reduction 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 insur-
ance plan that exceeds the amount paid by the member. 
"(c) BENEFITS AVAILABLE UNDER THE PLAN.—The dental insur-
ance plan shall provide benefits for basic dental care and treatment, 
including diagnostic services, preventative 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 discharged, transfers to the 
Individual Ready Reserve, Standby 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 chapter 
is amended by inserting after the item relating to section 1076a 
the following: 
"1076b. Selected Reserve dental insurance.". 
(b) IMPLEMENTATION.—Beginning not later than October 1, 
1996, the Secretary of Defense shall offer members of the Selected 
Reserve the opportunity to enroll in the dental insurance plan 
required under section 1076b of title 10, United States Code (as 
added by subsection (a)). During fiscal year 1996, the Secretary 
shall collect such information and complete such planning and 
other preparations as are necessary to offer and administer the 
dental insurance plan by that date. The activities undertaken by 
the Secretary under this subsection during fiscal year 1996 may 
include— 
(1) surveys; and 
(2) tests, in not more than three States, of a dental insur-
ance plan or alternative dental insurance plans meeting the 
requirements of section 1076b of title 10, United States Code. 
SEC. 706. PERMANENT AUTHORITY TO CARRY OUT SPECIALIZED 
TREATMENT FACILITY PROGRAM. 
Section 1105 of title 10, United States Code, is amended by 
striking out subsection (h). 
10 u s e 1076b 
note. 
110 STAT. 374 
PUBLIC LAW 104-106—FEB. 10, 1996 
Subtitle B—TRICARE Program 
10 u s e 1073 
SEC. 711. DEFINITION OF TRICARE PROGRAM. 
For purposes of this subtitle, the term "TRICARE program" 
means the managed health care program that is established by 
the Secretary of Defense under the authority of chapter 55 of 
title 10, United States Code, principally section 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 Services. 
SEC. 712. PRIORITY USE OF MILITARY TREATMENT FACILITIES FOR 
PERSONS ENROLLED IN MANAGED CARE INITIATIVES. 
Section 1097(c) of title 10, United States Code, is amended 
in the third sentence by striking out "However, the Secretary may" 
and inserting in lieu thereof "Notwithstanding the preferences 
established by sections 1074(b) and 1076 of this title, the Secretary 
shall". 
SEC. 713. STAGGERED PAYMENT OF ENROLLMENT FEES FOR TRICARE 
PROGRAM. 
Section 1097(e) of title 10, United States Code, is amended 
by adding at the end the following new sentence: "Without imposing 
additional costs on covered beneficiaries who participate in contracts 
for health care services under this section or health care plans 
offered under section 1099 of this title, the Secretary shall permit 
such covered beneficiaries to pay, on a quarterly basis, any enroll-
ment fee required for such participation.". 
SEC. 714. 
REQUIREMENT 
OF 
BUDGET 
NEUTRALITY 
FOR 
TRICARE 
PRO-
GRAM 
TO 
BE 
BASED 
ON 
ENTIRE 
PROGRAM. 
(a) 
CHANGE IN BUDGET NEUTRALITY REQUIREMENTS.—Sub-
section (c) of section 731 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 1073 
note) is amended— 
(1) by striking out "each managed health care initiative 
that includes the option" and inserting in lieu thereof "the 
TRICARE program"; and 
(2) by striking out "covered beneficiaries who enroll in 
the option" and inserting in lieu thereof "members of the uni-
formed services and covered beneficiaries who participate in 
the TRICARE program". 
(b) ADDITION OF DEFINITION OF TRICARE PROGRAM.—Sub-
section (d) of such section is amended to read as follows: 
"(d) DEFINITIONS.—For purposes of this section: 
"(1) The term 'covered beneficiary' means a beneficiary 
under chapter 55 of title 10, United States Code, other than 
a beneficiary under section 1074(a) of such title. 
"(2) The term 'TRICARE program' means the managed 
health care program that is established by the Secretary of 
Defense under the authority of chapter 55 of title 10, United 
States Code, principally section 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 Services.". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 375 
SEC. 715. TRAINING IN HEALTH CARE MANAGEMENT AND ADMINIS- 
10 USC 1073 
TRATION FOR TRICARE LEAD AGENTS. 
note. 
(a) PROVISION OF TRAINING.—Not later than six months after 
the date of the enactment of this Act, the Secretary of Defense 
shall implement a professional educational program to provide 
appropriate training in health care management and administra-
tion— 
(1) to each commander of a military medical treatment 
facility of the Department of Defense who is selected to serve 
as a lead agent to coordinate the delivery of health care by 
military and civilian providers under the TRICARE program; 
and 
(2) to appropriate members of the support staff of the 
treatment facility who will be responsible for daily operation 
of the TRICARE program. 
(b) REPORT ON IMPLEMENTATION.—Not later than six months 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report describing the professional edu-
cational program implemented pursuant to this section. 
SEC. 716. PILOT PROGRAM OF INDIVIDUALIZED RESIDENTIAL MEN- 
Children and 
TAL HEALTH SERVICES. 
y°"A^V, .„ 
10 USC 1073 
(a) PROGRAM REQUIRED.—(1) During fiscal year 1996, the Sec- note, 
retary of Defense, in consultation with the other administering 
Secretaries under chapter 55 of title 10, United States Code, shall 
implement a pilot program to provide residential and wraparound 
services to children described in paragraph (2) who are in need 
of mental health services. The Secretary shall implement the pilot 
program for an initial period of at least two years in a military 
health care region in which the TRICARE program has been 
implemented. 
(2) A child shall be eligible for selection to participate in the 
pilot program if the child is a dependent (as described in subpara-
graph (D) or (I) of section 1072(2) of title 10, United States Code) 
who— 
(A) is eligible for health care under section 1079 or 1086 
of such title; and 
(B) has a serious emotional disturbance that is generally 
regarded as amenable to treatment. 
(b) WRAPAROUND SERVICES DEFINED.—For purposes of this sec-
tion, the term "wraparound services" means individualized mental 
health services that are provided principally to allow a child to 
remain in the family home or other least-restrictive and least-
costly setting, but also are provided as an aftercare planning service 
for children who have received acute or residential care. Such 
term includes nontraditional mental health services that will assist 
the child to be maintained in the least-restrictive and least-costly 
setting. 
(c) PILOT PROGRAM AGREEMENT.—^Under the pilot program the 
Secretary of Defense shall enter into one or more agreements that 
require a mental health services provider under the agreement— 
(1) to provide wraparound services to a child described 
in subsection (a)(2); 
(2) to continue to provide such services as needed during 
the period of the agreement even if the child moves to another 
location within the same TRICARE program region during 
that period; and 
110 STAT. 376 
PUBLIC LAW 104-106—FEB. 10, 1996 
(3) to share financial risk by accepting as a maximum 
annual payment for such services a case-rate reimbursement 
not in excess of the amount of the annual standard CHAMPUS 
residential treatment benefit payable (as determined in accord-
ance with section 8.1 of chapter 3 of volume II of the CHAMPUS 
policy manual). 
(d) REPORT.—^Not later than March 1, 1998, the Secretary of 
Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report on the program carried out under this 
section. The report shall contain— 
(1) an assessment of the effectiveness of the program; and 
(2) the Secretary's views regarding whether the program 
should be implemented throughout the military health care 
system. 
10 u s e 1073 
SEC. 717. EVALUATION 
AND REPORT 
ON TRICARE 
PROGRAM 
note. 
EFFECTIVENESS. 
(a) EVALUATION REQUIRED.—^The Secretary of Defense shall 
arrange for an on-going evaluation of the effectiveness of the 
TRICARE program in meeting the goals of increasing the access 
of covered beneficiaries under chapter 55 of title 10, United States 
Code, to health care and improving the quality of health care 
provided to covered beneficiaries, without increasing the costs 
incurred by the Government or covered beneficiaries. The evaluation 
shall specifically address— 
(1) the impact of the TRICARE program on military retirees 
with regard to access, costs, and quality of health care services; 
and 
(2) identify noncatchment areas in which the health 
maintenance organization option of the TRICARE program is 
available or is proposed to become available. 
(b) ENTITY TO CONDUCT EVALUATION.—The Secretary may use 
a federally funded research and development center to conduct 
the evaluation required by subsection (a). 
(c) ANNUAL REPORT.—Not later than March 1, 1997, and each 
March 1 thereafter, the Secretary shall submit to Congress a report 
describing the results of the evaluation under subsection (a) during 
the preceding year. 
SEC. 718. SENSE OF CONGRESS REGARDING ACCESS TO HEALTH CARE 
UNDER TRICARE PROGRAM FOR COVERED BENEFICIARIES 
WHO ARE MEDICARE ELIGIBLE. 
(a) FINDINGS.—Congress finds the following: 
(1) Medical care provided in facilities of the uniformed 
services is generally less expensive to the Federal Government 
than the same care provided at Government expense in the 
private sector. 
(2) Covered beneficiaries under the military health care 
provisions of chapter 55, United States Code, who are eligible 
for medicare under title XVIII of the Social Security Act (42 
U.S.C. 1395 et seq.) deserve health care options that empower 
them to choose the health plan that best fits their needs. 
(b) SENSE OF CONGRESS.—In light of the findings specified 
in subsection (a), it is the sense of Congress that— 
(1) the Secretary of Defense should develop a program 
to ensure that such covered beneficiaries who reside in a region 
in which the TRICARE program has been implemented con-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 377 
tinue to have adequate access to health care services after 
the implementation of the TRICARE program; and 
(2) as a means of ensuring such access, the budget for 
fiscal year 1997 submitted by the President under section 1105 
of title 31, United States Code, should provide for reimburse-
ment by the Health Care Financing Administration to the 
Department of Defense for health care services provided to 
such covered beneficiaries in medical treatment facilities of 
the Department of Defense. 
Subtitle C—Uniformed Services Treatment 
Facilities 
SEC. 721. DELAY OF TERMINATION OF STATUS OF CERTAIN FACILI-
TIES AS UNIFORMED SERVICES TREATMENT FACILITIES. 
Section 1252(e) of the Department of Defense Authorization 
Act, 1984 (42 U.S.C. 248d(e)) is amended by striking out "December 
31, 1996" in the first sentence and inserting in lieu thereof "Septem-
ber 30, 1997". 
SEC. 722. LIMITATION ON EXPENDITURES TO SUPPORT UNIFORMED 
SERVICES TREATMENT FACILITIES. 
Subsection (f) of section 1252 of the Department of Defense 
Authorization Act, 1984 (42 U.S.C. 248d), is amended to read as 
follows: 
"(f) 
LIMITATION 
ON EXPENDITURES.—^The total amount of 
expenditures by the Secretary of Defense to carry out this section 
and section 911 of the Military Construction Authorization Act, 
1982 (42 U.S.C. 248c), for fiscal year 1996 may not exceed 
$300,000,000, adjusted by the Secretary to reflect the inflation 
factor used by the Department of Defense for such fiscal year.". 
SEC. 
7
2
3
. 
APPLICATION 
OF 
CHAMPUS 
PAYMENT 
RULES 
IN 
CERTAIN 
CASES. 
Section 1074 of title 10, United States Code, is amended by 
adding at the end the following new subsection: 
"(d)(1) The Secretaiy of Defense may require, by regulation, 
, 
a private CHAMPUS provider to apply the CHAMPUS payment 
' 
rules (subject to any modifications considered appropriate by the 
Secretary) in imposing charges for health care that the private 
CHAMPUS provider provides to a member of the uniformed services 
who is enrolled in a health care plan of 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)) when the health care is provided outside the catchment 
area of the facility. 
"(2) In this subsection: 
"(A) The term 'private CHAMPUS provider' means a pri-
vate facility or health care provider that is a health care pro-
vider under the Civilian Health and Medical Program of the 
Uniformed Services. 
"(B) The term 'CHAMPUS payment rules' means the pay-
ment rules referred to in subsection (c). 
"(3) The Secretary of Defense shall prescribe regulations under Regidations. 
this subsection after consultation with the other administering Sec-
retaries.". 
110 STAT. 378 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 724. APPLICATION OF FEDERAL ACQUISITION REGULATION TO 
PARTICIPATION AGREEMENTS WITH UNIFORMED SERV-
ICES TREATMENT FACILITIES. 
(a) Section 718(c) of the National Defense Authorization Act 
42 use 248c 
for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1587) is 
note. 
amended— 
(1) in the second sentence of paragraph (1), by striking 
out "A participation agreement" and inserting in lieu thereof 
"Except 
as 
provided 
in 
paragraph 
(4), a 
participation 
agreement"; 
(2) by redesignating paragraph (4) as paragraph (6); and 
(3) by inserting after paragraph (3) the following new para-
graph: 
"(4) APPLICATION OF FEDERAL ACQUISITION REGULATION.— 
On and after the date of the enactment of this paragraph, 
Uniformed Services Treatment Facilities and any participation 
agreement between Uniformed Services Treatment Facilities 
and the Secretary of Defense shall be subject to the Federal 
Acquisition Regulation issued pursuant to section 25(c) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 421(c)) 
notwithstanding any provision to the contrary in such a partici-
pation agreement. The requirements regarding competition in 
the Federal Acquisition Regulation shall apply with regard 
to the negotiation of any new participation agreement between 
the Uniformed Services Treatment Facilities and the Secretary 
of Defense under this subsection or any other provision of 
law.". 
(b) SENSE OF CONGRESS.—(1) Congress finds that the Uniformed 
Services Treatment Facilities provide quality health care to the 
120,000 Department of Defense beneficiaries enrolled in the Uni-
formed Services Family Health Plan provided by these facilities. 
(2) In light of such finding, it is the sense of Congress that 
the Uniformed Services Family Health Plan provided by the Uni-
formed Services Treatment Facilities should not be terminated for 
convenience under provisions of the Federal Acquisition Regulation 
\ 
by the Secretary of Defense before the expiration of the current 
participation agreements. 
(3) For purposes of this subsection, the term "Uniformed Serv-
ices 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)). 
SEC. 
725. 
DEVELOPMENT OF PLAN FOR INTEGRATING UNIFORMED 
SERVICES TREATMENT FACIUTIES IN MANAGED CARE 
PROGRAMS 
OF 
DEPARTMENT 
OF 
DEFENSE. 
Section 718(c) of the National Defense Authorization Act for 
42 use 248c 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1587) is amended 
note. 
by inserting after paragraph (4), as added by section 722, the 
following new paragraph: 
"(5) PLAN FOR INTEGRATING FACILITIES.—(A) The Secretary 
of Defense shall develop a plan under which Uniformed Services 
Treatment Facilities could be included, before the expiration 
date of the participation agreements entered into under this 
section, in the exclusive health care provider networks estab-
lished by the Secretary for the geographic regions in which 
the facilities are located. The Secretary shall address in the 
plan the feasibility of implementing the managed care plan 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 379 
of the Uniformed Services Treatment Facilities, known as 
Option II, on a mandatory basis for all USTF Medicare-eligible 
beneficiaries and the potential cost savings to the Military 
Health Care Program that could be achieved under such option. 
"(B) The Secretary shall submit the plan developed under 
this paragraph to Congress not later than March 1, 1996. 
"(C) The plan developed under this paragraph shall be 
consistent with the requirements specified in paragraph (4). 
If the plan is not submitted to Congress by the expiration 
date of the participation agreements entered into under this 
section, the participation agreements shall remain in effect, 
at the option of the Uniformed Services Treatment Facilities, 
until the end of the 180-day period beginning on the date 
the plan is finally submitted. 
"(D) For purposes of this paragraph, the term 'USTF Medi-
care-eligible beneficiaries' means covered beneficiaries under 
chapter 55 of title 10, United States Code, who are enrolled 
in a managed health plan offered by the Uniformed Services 
Treatment Facilities and entitled to hospital insurance benefits 
under part A of title XVIII of the Social Security Act (42 
U.S.C. 1395c et seq.).". 
SEC. 726. EQUITABLE IMPLEMENTATION OF UNIFORM COST SHARING 
42 USC 248c 
REQUIREMENTS FOR UNIFORMED SERVICES TREAT- 
note. 
MENT FACILITIES. 
(a) TIME FOR FEE IMPLEMENTATION.—^The uniform managed 
care benefit fee and copayment schedule developed by the Secretary 
of Defense for use in all managed care initiatives of the military 
health service system, including the managed care program of the 
Uniformed Services Treatment Facilities, shall be extended to the 
managed care program of a Uniformed Services Treatment Facility 
only after the later o
f
— 
(1) the implementation of the TRICARE regional program 
covering the service area of the Uniformed Services Treatment 
Facility; or 
(2) October 1, 1996. 
(b) SUBMISSION OF ACTUARIAL ESTIMATES.—Paragraph (2) of 
subsection (a) shall operate as a condition on the extension of 
the uniform managed care benefit fee and copayment schedule 
to the Uniformed Services Treatment Facilities only if the Uni-
formed Services Treatment Facilities submit to the Comptroller 
General of the United States, within 30 days after the date of 
the enactment of this Act, actuarial estimates in support of their 
contention that the extension of such fees and copayments will 
have an adverse effect on the operation of the Uniformed Services 
Treatment Facilities and the enrollment of participants. 
(c) EVALUATION.—(1) Except as provided in paragraph (2), not 
later than 90 days after the date of the enactment of this Act, 
the Comptroller General shall submit to Congress the results of 
an evaluation of the effect on the Uniformed Services Treatment 
Facilities of the extension of the uniform benefit fee and copayment 
schedule to the Uniformed Services Treatment Facilities. The 
evaluation shall include an examination of whether the benefit 
fee and copayment schedule may— 
(A) cause adverse selection of enrollees; 
(B) be inappropriate for a fully at-risk program similar 
to civilian health maintenance organizations; or 
110 STAT. 380 
PUBLIC LAW 104-106—FEB. 10, 1996 
(C) result in an enrolled population dissimilar to the gen-
eral beneficiary population. 
(2) The Comptroller General shall not be required to prepare 
or submit the evaluation under paragraph (1) if the Uniformed 
Services Treatment Facilities fail to satisfactorily comply with sub-
section (b), as determined by the Comptroller General. 
SEC. 727. ELIMINATION 
OF 
UNNECESSARY 
ANNUAL 
REPORTING 
REQUIREMENT 
REGARDING 
UNIFORMED 
SERVICES 
TREATMENT FACILITIES. 
Section 1252 of the Department of Defense Authorization Act, 
1984 (42 U.S.C. 248d), is amended by striking out subsection (d). 
Subtitle D—Other Changes to Existing 
Laws Regarding Health Care Management 
Regulations. 
SEC. 731. MAXIMUM ALLOWABLE PAYMENTS TO INDIVIDUAL HEALTH-
CARE PROVIDERS UNDER CHAMPUS. 
(a) MAXIMUM PAYMENT.—Subsection (h) of section 1079 of title 
10, United States Code, is amended by striking out paragraph 
(1) and inserting in lieu thereof the following new paragraph: 
"(1) 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 
subsection (a) may not exceed the lesser of— 
"(A) the amount equivalent to the 80th percentile of billed 
charges made for similar services in the same locality during 
the base period; or 
"(B) an amount determined to be appropriate, to the extent 
practicable, in accordance with the same reimbursement rules 
as apply to pa3anents for similar services under title XVIII 
of the Social Security Act (42 U.S.C. 1395 et seq.).". 
(b) COMPARISON TO MEDICARE PAYMENTS.—Such subsection is 
further amended by adding at the end the following new paragraph: 
"(3) For the purposes of paragraph (1)(B), the appropriate pay-
ment amount shall be determined by the Secretary of Defense, 
in consultation with the other administering Secretaries.". 
(c) EXCEPTIONS AND LIMITATIONS.—Such subsection is further 
amended by inserting after paragraph (3), as added by subsection 
(b), the following new paragraphs: 
"(4) The Secretary of Defense, in consultation with the other 
administering Secretaries, shall prescribe regulations to provide 
for such exceptions to the payment limitations under paragraph 
(1) as the Secretary determines to be necessary to assure that 
covered beneficiaries retain adequate access to health care services. 
Such exceptions may include the payment of amounts higher than 
the amount allowed under paragraph (1) when enrollees in managed 
care 
programs 
obtain 
covered 
emergency 
services 
from 
nonparticipating providers. To provide a suitable transition from 
the payment methodologies in effect before the date of the enact-
ment of this paragraph to the methodology required by paragraph 
(1), the amount allowable for any service may not be reduced 
by more than 15 percent below the amount allowed for the same 
service during the immediately preceding 12-month period (or other 
period as established by the Secretary of Defense). 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 381 
"(5) The Secretary of Defense, in consultation with the other Regulations. 
administering Secretaries, shall prescribe regulations to establish 
limitations (similar to the limitations established under title XVIII 
of the Social Security Act (42 U.S.C. 1395 et seq.)) on beneficiary 
liability for charges of an individual health care professional (or 
other noninstitutional health care provider).". 
(d) CONFORMING AMENDMENT.—Paragraph (2) of such sub-
section is amended by striking out "paragraph (1)" and inserting 
in lieu thereof "paragraph (1)(A)". 
(e) REPORT ON EFFECT OF AMENDMENTS.—Not later than March 
1, 1996, the Secretary of Defense shall submit to Congress a report 
analyzing the effect of the amendments made by this section on 
the ability or willingness of individual health care professionals 
and other noninstitutional health care providers to participate in 
the Civilian Health and Medical Program of the Uniformed Services. 
SEC. 732. NOTIFICATION OF CERTAIN CHAMPUS COVERED BENE-
FICIARIES O F L O S S O F CHAMPUS ELIGIBILITY. 
Section 1086(d) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
"(4) The administering Secretaries shall develop a mechanism 
by which persons described in paragraph (1) who satisfy only the 
criteria specified in subparagraphs (A) and (B) of paragraph (2), 
but not subparagraph (C) of such paragraph, are promptly notified 
of their ineligibility for health benefits under this section. In devel-
oping the notification mechanism, the administering Secretaries 
shall consult with the administrator of the Health Care Financing 
Administration.". 
SEC. 733. PERSONAL SERVICES CONTRACTS FOR MEDICAL TREAT-
MENT 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 facilities 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 exercise of lo use i09i 
authority under section 1091 of title 10, United States Code, to note. 
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 subsection 
lo use I09i 
(a) shall take effect as of October 1, 1995. 
note. 
SEC. 734. IDENTIFICATION OF THIRD-PARTY PAYER SITUATIONS. 
Section 1095 of title 10, United States Code, is amended by 
adding at the end the following new subsection: 
"(k)(l) To improve the administration of this section and sec-
tions 1079(j)(l) and 1086(d) of this title, the Secretary of Defense, 
in consultation with the other administering Secretaries, may pre-
scribe regulations providing for the collection of information regard-
ing insurance, medical service, or health plans of third-party payers 
held by covered beneficiaries. 
110 STAT. 382 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(2) The collection of information under regulations prescribed 
under paragraph (1) shall be conducted in the same manner as 
is provided in section 1862(b)(5) of the Social Security Act (42 
U.S.C. 1395y(b)(5)). The Secretary may provide for obtaining from 
the Commissioner of Social Security employment information com-
parable to the information provided to the Administrator of the 
Health Care Financing Administration pursuant to such section. 
Such regulations may require the mandatory disclosure of Social 
Security account numbers for all covered beneficiaries. 
"(3) The Secretary may disclose relevant employment informa-
tion collected under this subsection to fiscal intermediaries or other 
designated contractors. 
"(4) The Secretary may provide for contacting employers of 
covered beneficiaries to obtain group health plan information com-
parable to the information authorized to be obtained under section 
1862(b)(5)(C) of the Social Security Act (42 U.S.C. 1395y(b)(5)(C)). 
Notwithstanding clause (iii) of such section, clause (ii) of such 
section regarding the imposition of civil money penalties shall apply 
to the collection of information under this paragraph. 
"(5) Information obtained under this subsection may not be 
disclosed for any purpose other than to carry out the purpose 
of this section and sections 1079(j)(l) and 1086(d) of this title.". 
SEC. 735. REDESIGNATION OF MILITARY HEALTH CARE ACCOUNT AS 
DEFENSE HEALTH PROGRAM ACCOUNT AND TWO-YEAR 
AVAILABILITY OF CERTAIN ACCOUNT FUNDS. 
(a) REDESIGNATION.—Section 1100 of title 10, United States 
Code, is amended— 
(1) in subsection (a)(1)— 
(A) by striking out "Military Health Care Account" 
and inserting in lieu thereof "Defense Health Program 
Account"; and 
(B) by striking out "the Civilian Health and Medical 
Program of the Uniformed Services" and inserting in lieu 
thereof "medical and health care programs of the Depart-
ment of Defense"; and 
(2) in subsection (b)— 
(A) by striking out "entering into a contract" and insert-
ing in lieu thereof "conducting programs and activities 
under this chapter, including contracts entered into"; and 
(B) by inserting a comma after "title". 
(b) Two 
YEAR AVAILABILITY OF CERTAIN APPROPRIATIONS.— 
Subsection (a)(2) of such section is amended to read as follows: 
"(2) Of the total amount appropriated for a lEiscal year for 
programs and activities carried out under this chapter, the amount 
equal to three percent of such total amount shall remain available 
for obligation until the end of the following fiscal year.". 
(c) CONFORMING AMENDMENTS.—Such section 
is 
further 
amended— 
(1) by striking out subsections (c), (d), and (f); and 
(2) by redesignating subsection (e) as subsection (c). 
(d) CLERICAL AMENDMENTS.—(1) The heading of such section 
is amended to read as follows: 
PUBLIC LAW 104-10&—FEB. 10, 1996 
110 STAT. 383 
"§ 1100. Defense Health Program Account". 
(2) The item relating to such section in the table of sections 
at the beginning of chapter 55 of such title is amended to read 
as follows: 
"1100. Defense Health Program Account.". 
SEC. 736. EXPANSION OF FINANCIAL ASSISTANCE PROGRAM FOR 
HEALTH-CARE 
PROFESSIONALS IN RESERVE COMPO-
NENTS TO INCLUDE DENTAL SPECIALTIES. 
Section 16201(b) of title 10, United States Code, is amended— 
(1) in the subsection heading, by inserting "AND DENTISTS" 
after "PHYSICIANS"; 
(2) in paragraph (1)(A), by inserting "or dental school" 
after "medical school"; 
(3) in paragraphs (1)(B) and (2)(B), by inserting "or dental 
officer" after "medical officer"; and 
(4) in paragraph (1)(C), by striking out "physicians in a 
medical specialty" and inserting in lieu thereof "physicians 
or dentists in a medical or dental specialty". 
SEC. 737. APPLICABILITY OF LIMITATION ON PRICES OF PHARMA-
CEUTICALS PROCURED FOR COAST GUARD. 
(a) INCLUSION OF COAST GUARD.—Section 8126(b) of title 38, 
United States Code, is amended by adding at the end the following 
new paragraph: 
"(4) The Coast Guard.". 
(b) 
EFFECTIVE 
DATE; 
APPLICATION OF AMENDMENT.—The 38USC8i26 
amendment made by subsection (a) shall take effect as if included note. 
in the enactment of section 603 of the Veterans Health Care Act 
of 1992 (Public Law 102-585; 106 Stat. 4971). 
SEC. 738. RESTRICTION ON USE OF DEPARTMENT OF DEFENSE 
FACILITIES FOR ABORTIONS. 
(a) IN GENERAL.—Section 1093 of title 10, United States Code, 
is amended— 
(1) 
by 
inserting 
"(a) 
RESTRICTION 
ON USE OF 
FUNDS.—" before "Funds available"; and 
(2) by adding at the end the following: 
"(b) RESTRICTION ON USE OF FACILITIES.—No medical treatment 
facility or other facility of the Department of Defense may be 
used to perform an abortion except where the life of the mother 
would be endangered if the fetus were carried to term or in a 
case in which the pregnancy is the result of an act of rape or 
incest.". 
(b) CLERICAL AMENDMENTS.—(1) The heading of such section 
is amended to read as follows: 
"§ 1093. Performance of abortions: restrictions'*. 
(2) The item relating to such section in the table of sections 
at the beginning of chapter 55 of such title is amended to read 
as follows: 
"1093. Performance of abortions: restrictions.". 
110 STAT. 384 
PUBLIC LAW 104-106—FEB. 10, 1996 
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 new 
section: 
"§ 2116. Military nursing research 
"(a) DEFINITIONS.—In this section: 
"(1) The term 'military nursing research' means research 
on the furnishing of care and services by nurses in the armed 
forces. 
"(2) The term 'TriService Nursing Research Program' 
means the program of military nursing research authorized 
under this section. 
"(b) PROGRAM AUTHORIZED.—^The Secretary of Defense may 
establish at the University a program of military nursing research. 
"(c) TRISERVICE RESEARCH GROUP.—The TriService Nursing 
Research Program shall be administered 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 Secretary concerned to serve as members of the group. 
"(d) DUTIES OF GROUP.—^The TriService Nursing Research 
Group shall— 
"(1) develop for the Department of Defense recommended 
guidelines for requesting, reviewing, and funding proposed mili-
tary nursing research projects; and 
"(2) make available to Army, Navy, and Air Force nurses 
and Department of Defense officials concerned with military 
nursing research— 
"(A) information about nursing research projects that 
are being developed or carried out in the Army, Navy, 
and Air Force; and 
"(B) expertise and information 
beneficial to the 
encouragement of meaningful nursing research. 
"(e) 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 complications associ-
ated with battle injuries. 
"(4) Issues regarding how to prevent complications associ-
ated 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 issues 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. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 385 
"(11) Case management issues.", 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 104 of such title is amended by adding at the 
end the following: 
"2116. Military nursing research.". 
SEC. 742. TERMINATION 
OF 
PROGRAM 
TO 
TRAIN 
MILITARY 
PSYCHOLOGISTS TO PRESCRIBE PSYCHOTROPIC MEDICA-
TIONS. 
(a) TERMINATION.—Not later than June 30, 1997, the Secretary 
of Defense shall terminate the demonstration pilot program for 
training military psychologists in the prescription of psychotropic 
medications, which is referred to in section 8097 of the Department 
of Defense Appropriations Act, 1991 (Public Law 101-511; 104 
Stat. 1897). 
(b) PROHIBITION ON ADDITIONAL ENROLLEES PENDING TERMI-
NATION.—^After the date of the enactment of this Act, the Secretary 
of Defense may not enroll any new participants for the demonstra-
tion pilot program described in subsection (a). 
(c) EFFECT ON CURRENT PARTICIPANTS.—The requirement to 
terminate the demonstration pilot program described in subsection 
(a) shall not be construed to affect the training or utilization of 
military psychologists in the prescription of psychotropic medica-
tions who are participating in the demonstration pilot program 
on the date of the enactment of this Act or who have completed 
such training before that date. 
f 
(d) EVALUATION.—^As soon as possible after the date of the Reports. 
enactment of this Act, but not later than April 1, 1997, the 
Comptroller General of the United States shall submit to Congress 
a report evaluating the success of the demonstration pilot program 
described in subsection (a). The report shall include— 
(1) a cost-benefit analysis of the program; 
(2) a discussion of the utilization requirements under the 
program; and 
(3) recommendations regarding— 
(A) whether the program should be extended so as 
to continue to provide training to military psychologists 
in the prescription of psychotropic medications; and 
(B) any modifications that should be made in the man-
ner in which military psychologists are trained and used 
to prescribe psychotropic medications so as to improve the 
training provided under the program, if the program is 
extended. 
SEC. 743. WAIVER OF COLLECTION OF PAYMENTS DUE FROM CERTAIN 
10 USC 1086 
PERSONS UNAWARE OF LOSS OF CHAMPUS ELIGIBILITY, 
note. 
(a) AUTHORITY TO WAIVE COLLECTION.—^The administering Sec-
retaries may waive the collection of pa3anents otherwise due from 
a person described in subsection (b) as a result of the receipt 
by the person of health, benefits under section 1086 of title 10, 
United States Code, after the termination of the person's eligibility 
for such benefits. 
(b) PERSONS ELIGIBLE FOR WAIVER.—A person shall be eligible 
for relief under subsection (a) if the person— 
(1) is a person described in paragraph (1) of subsection 
(d) of section 1086 of title 10, United States Code; 
110 STAT. 386 
PUBLIC LAW 104-106—FEB. 10, 1996 
(2) in the absence of such paragraph, would have been 
eligible for health benefits under such section; and 
(3) at the time of the receipt of such benefits, satisfied 
the criteria specified in subparagraphs (A) and (B) of paragraph 
(2) of such subsection. 
(c) EXTENT OF WAIVER AUTHORITY.—The authority to waive 
the collection of payments pursuant to this section shall apply 
with regard to health benefits provided under section 1086 of title 
10, United States Code, to persons described in subsection (b) 
during the period beginning on January 1, 1967, and ending on 
the later of— 
(1) the termination date of any special enrollment period 
provided under title XVIII of the Social Security Act (42 U.S.C. 
1395 et seq.) specifically for such persons; and 
(2) July 1, 1996. 
(d) DEFINITIONS.—For purposes of this section, the term "admin-
istering Secretaries" has the meaning given such term in section 
1072(3) of title 10, United States Code. 
10 use 1092 
SEC. 744. DEMONSTRATION PROGRAM TO TRAIN MILITARY MEDICAL 
note. 
PERSONNEL IN CIVILIAN SHOCK TRAUMA UNITS. 
(a) DEMONSTRATION PROGRAM.—(1) Not later than April 1, 
1996, the Secretary of Defense shall implement a demonstration 
program to evaluate the feasibility of providing shock trauma train-
ing for military medical personnel through one or more public 
or nonprofit hospitals. The Secretary shall carry out the program 
pursuant to an agreement with such hospitals. 
(2) Under the agreement with a hospital, the Secretary shall 
assign military medical personnel participating in the demonstra-
tion program to temporary duty in shock trauma units operated 
by the hospitals that are parties to the agreement. 
(3) The agreement shall require, as consideration for the serv-
ices provided by military medical personnel under the agreement, 
that the hospital provide appropriate care to members of the Armed 
Forces and to other persons whose care in the hospital would 
otherwise require reimbursement by the Secretary. The value of 
the services provided by the hospitals shall be at least equal to 
the value of the services provided by military medical personnel 
under the agreement. 
(b) TERMINATION OF PROGRAM.—^The authority of the Secretary 
of Defense to conduct the demonstration program under this section, 
and any agreement entered into under the demonstration program, 
shall expire on March 31, 1998. 
(c) REPORT AND EVALUATION OF PROGRAM.—(1) Not later than 
March 1 of each year in which the demonstration program is con-
ducted under this section, the Secretary of Defense shall submit 
to Congress a report describing the scope and activities of the 
demonstration program during the preceding year. 
(2) Not later than May 1, 1998, the Comptroller General of 
the United States shall submit to Congress a report evaluating 
the effectiveness of the demonstration program in providing shock 
trauma training for military medical personnel. 
SEC. 
7
4
5
. 
STUDY 
REGARDING 
DEPARTMENT 
OF 
DEFENSE 
EFFORTS 
TO 
DETERMINE 
APPROPRIATE 
FORCE 
LEVELS 
OF 
WARTIME 
MEDICAL 
PERSONNEL. 
(a) STUDY REQUIRED.—^The Comptroller General of the United 
States shall conduct a study to evaluate the reasonableness of 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 387 
the models used by each miHtary department for determining the 
appropriate wartime force level for medical personnel in the depart-
ment. The study shall include the following: 
(1) An assessment of the modeling techniques used by 
each department. 
(2) An analysis of the data used in the models to identify 
medical personnel requirements. 
(3) An identification of the ability of the models to integrate 
personnel 
of 
reserve 
components 
to 
meet 
department 
requirements. 
(4) An evaluation of the ability of the Secretary of Defense 
to integrate the various modeling efforts into a comprehensive, 
coordinated plan for obtaining the optimum force level for war-
time medical personnel. 
(b) REPORT OF STUDY.—Not later than June 30, 1996, the 
Comptroller General shall report to Congress on the results of 
the.study conducted under subsection (a). 
SEC. 746. REPORT ON IMPROVED ACCESS TO MILITARY HEALTH CARE 
FOR COVERED BENEFICIARIES ENTITLED TO MEDICARE. 
Not later than March 1, 1996, the Secretary of Defense shall 
submit to Congress a report evaluating the feasibility, costs, and 
consequences for the military health care system of improving access 
to the system for covered beneficiaries under chapter 55 of title 
10, United States Code, who have limited access to military medical 
treatment facilities and are ineligible for the Civilian Health and 
Medical Program of the Uniformed Services under section 1086(d)(1) 
of such title. The alternatives that the Secretary shall consider 
to improve access for such covered beneficiaries shall include— 
(1) whether CHAMPUS should serve as a second payer 
for covered beneficiaries who are entitled to hospital insurance 
benefits under part A of title XVIII of the Social Security 
Act (42 U.S.C. 1395c et seq.); and 
(2) whether such covered beneficiaries should be offered 
enrollment in the Federal Employees Health Benefits program 
under chapter 89 of title 5, United States Code. 
SEC. 747. REPORT ON EFFECT OF CLOSURE OF FITZSIMONS ARMY 
MEDICAL CENTER, COLORADO, ON PROVISION OF CARE 
TO MILITARY PERSONNEL, RETIRED MILITARY PERSON-
NEL, AND THEIR DEPENDENTS. 
(a) EFFECT OF CLOSURE ON MEMBERS 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 who 
suffer from undiagnosed illnesses (or combination of illnesses) 
as a result of service in the Armed Forces in the Southwest 
Asia theater of operations during the Persian Gulf conflict; 
and 
(2) describes the plans of the Secretary of Defense and 
the Secretary of the Army to ensure that adequate and appro-
priate health care is provided to such members for such ill-
nesses (or combination of illnesses). 
110 STAT. 388 
PUBLIC LAW 104-106—FEB. 10, 1996 
(b) EFFECT OF CLOSURE ON OTHER COVERED BENEFICIARIES.— 
The report required by subsection (a) shall also include— 
(1) an assessment of the effects of the closure of Fitzsimons 
Army Medical Center on the capability of the Department 
of Defense to provide appropriate and adequate health care 
to the dependents of members and former members of the 
Armed Forces and retired members and their dependents who 
currently obtain care at the medical center; and 
(2) a description of the plans of the Secretary of Defense 
and the Secretary of the Army to ensure that adequate and 
appropriate health care is provided to such persons, as called 
for in the recommendations of the Secretary of Defense for 
the closure of Fitzsimons Army Medical Center. 
SEC. 748. SENSE OF CONGRESS ON CONTINUITY OF HEALTH CARE 
SERVICES FOR COVERED BENEFICIARIES ADVERSELY 
AFFECTED BY CLOSURES OF MILITARY MEDICAL TREAT-
MENT FACILITIES. 
(a) FINDINGS.—Congress fmds the following: 
(1) Military installations selected for closure in the 1991 
and 1993 rounds of the base closure process will soon close. 
(2) Additional military installations have been selected for 
closure in the 1995 round of the base closure process. 
(3) Some of the military installations selected for closure 
include military medical treatment facilities. 
(4) As a result of these base closures, tens of thousands 
of covered beneficiaries under chapter 55 of title 10, United 
States Code, who reside in the vicinity of such installations 
will be left without immediate access to military medical treat-
ment facilities. 
(b) SENSE OF CONGRESS.—In light of the findings specified 
in subsection (a), it is the sense of Congress that the Secretary 
of Defense should take all appropriate steps necessary to ensure 
the continuation of medical and pharmaceutical benefits for covered 
beneficiaries 
adversely 
affected 
by 
the 
closure 
of 
military 
installations. 
SEC. 749. STATE RECOGNITION OF MILITARY ADVANCE MEDICAL 
DIRECTIVES. 
(a) REQUIREMENT FOR RECOGNITION BY STATES.—(1) Chapter 
53 of title 10, United States Code, is amended by inserting after 
section 1044b the following new section: 
"§ 1044c. Advance 
medical 
directives 
of 
members 
and 
dependents: requirement 
for recognition 
by 
States 
"(a) 
INSTRUMENTS TO BE GIVEN LEGAL EFFECT WITHOUT 
REGARD TO STATE LAW.—^An advance medical directive executed 
by a person eligible for legal assistance— 
"(1) is exempt from any requirement of form, substance, 
formality, or recording that is provided for advance medical 
directives under the laws of a State; and 
"(2) shall be given the same legal effect as an advance 
medical directive prepared and executed in accordance with 
the laws of the State concerned. 
"(b) ADVANCE MEDICAL DIRECTIVES.—For purposes of this sec-
tion, an advance medical directive is any written declaration that— 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 389 
"(1) sets forth directions regarding the provision, with-
drawal, or withholding of life-prolonging procedures, including 
hydration and sustenance, for the declarant whenever the 
declarant has a terminal physical condition or is in a persistent 
vegetative state; or 
"(2) authorizes another person to make health care deci-
sions for the declarant, under circumstances stated in the dec-
laration, whenever the declarant is incapable of making 
informed health care decisions. 
"(c) STATEMENT TO BE INCLUDED.—(1) Under regulations pre- Regulations. 
scribed by the Secretary' concerned, an advance medical directive 
prepared by an attorney authorized to provide legal assistance 
shall contain a statement that sets forth the provisions of subsection 
(a). 
"(2) Paragraph (1) shall not be construed to make inapplicable 
the provisions of subsection (a) to an advance medical directive 
that does not include a statement described in that paragraph. 
"(d) 
STATES NOT RECOGNIZING ADVANCE MEDICAL 
DIREC-
TIVES.—Subsection (a) does not make an advance medical directive 
enforceable in a State that does not otherwise recognize and enforce 
advance medical directives under the laws of the State. 
"(e) DEFINITIONS.—In this section: 
"(1) The term 'State' includes the District of Columbia, 
the Commonwealth of Puerto Rico, and a possession of the 
United States. 
"(2) The term 'person eligible for legal assistance' means 
a person who is eligible for legal assistance under section 
1044 of this title. 
"(3) The term 'legal assistance' means legal services author-
ized under section 1044 of this title.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 1044b 
the following: 
"1044c. Advance medical directives of members and dependents: requirement for 
recognition by States.". 
(b) EFFECTIVE DATE.—Section 1044c of title 10, United States 
lo use I044c 
Code, shall take effect on the date of the enactment of this Act note. 
and shall apply to advance medical directives referred to in that 
section that are executed before, on, or after that date. 
TITLE VIII—ACQUISITION POLICY, AC-
QUISITION MANAGEMENT, AND RE-
LATED MATTERS 
Subtitle A—^Acquisition Reform 
SEC. 801. INAPPLICABILITY OF LIMITATION ON EXPENDITURE OF 
APPROPRIATIONS TO CONTRACTS AT OR BELOW SIM-
PLIFIED ACQUISITION THRESHOLD. 
Section 2207 of title 10, United States Code, is amended— 
(1) by inserting "(a)" before "Money appropriated"; and 
(2) by adding at the end the following new subsection: 
"(b) This section does not apply to a contract that is for an 
amount not greater than the simplified acquisition threshold (as 
110 STAT. 390 
PUBLIC LAW 104-106—FEB. 10, 1996 
defined in section 4(11) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403(11))).". 
SEC. 802. AUTHORITY TO DELEGATE CONTRACTING AUTHORITY. 
(a) REPEAL OF DUPLICATIVE AUTHORITY AND RESTRICTION.— 
Section 2356 of title 10, United States Code, is repealed. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 139 of title 10, United States Code, is amended 
by striking out the item relating to section 2356. 
SEC. 803. CONTROL IN PROCUREMENTS OF CRITICAL 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 begin-
ning of chapter 141 of such title is amended by striking out the 
item relating to section 2383. 
SEC. 804. FEES FOR CERTAIN TESTING SERVICES. 
Section 2539b(c) of title 10, United States Code, is amended 
by inserting "and indirect" after "recoup the direct" in the second 
sentence. 
SEC. 805. COORDINATION 
AND 
COMMUNICATION 
OF 
DEFENSE 
RESEARCH ACTIVITIES. 
Section 2364 of title 10, United States Code, is amended— 
(1) in subsection (b)(5), by striking out "milestone O, mile-
stone I, and milestone 11" and inserting in lieu thereof "acquisi-
tion program"; and 
(2) in subsection (c), by striking out paragraphs (2), (3), 
and (4) and inserting in lieu thereof the following: 
"(2) The term 'acquisition program decision' has the mean-
ing prescribed by the Secretary of Defense in regulations.". 
SEC. 806. ADDITION OF CERTAIN ITEMS TO DOMESTIC SOURCE 
LIMITATION. 
(a) LIMITATION.—(1) Paragraph (3) of section 2534(a) of title 
10, United States Code, is amended to read as follows: 
"(3) COMPONENTS FOR NAVAL VESSELS.—(A) T h e following 
components: 
"(i) Air circuit breakers. 
"(ii) Welded shipboard anchor and mooring chain with 
a diameter of four inches or less. 
"(iii) Vessel propellers with a diameter of six feet or 
more. 
"(B) The following components of vessels, to the extent 
they are unique to marine applications: gyrocompasses, elec-
tronic navigation chart systems, steering controls, pumps, 
propulsion and machinery control systems, and totally enclosed 
lifeboats.". 
(2) Subsection (b) of section 2534 of such title is amended 
by adding at the end the following: 
"(3) MANUFACTURER OF VESSEL PROPELLERS.—In t h e case 
of a procurement of vessel propellers referred to in subsection 
(a)(3)(A)(ii), the manufacturer of the propellers meets the 
requirements of this subsection only if— 
"(A) the manufacturer meets the requirements set forth 
in paragraph (1); and 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 391 
"(B) all castings incorporated into such propellers are 
poured and finished in the United States.". 
(3) Paragraph (1) oi' section 2534(c) of such title is amended 
to read as follows: 
"(1) COMPONENTS FOR NAVAL VESSELS.—Subsection (a) does 
not apply to a procurement of spare or repair parts needed 
to support components for naval vessels produced or manufac-
tured outside the United States.". 
(4) Section 2534 of such title is amended by adding at the 
end the following new subsection: 
"(h) IMPLEMENTATION OF NAVAL VESSEL COMPONENT LIMITA-
TION.—In implementing subsection (a)(3)(B), the Secretary of 
Defense— 
"(1) may not use contract clauses or certifications; and 
"(2) shall use management and oversight techniques that 
achieve the objective of the subsection without imposing a 
significant management burden on the Government or the con-
tractor involved.". 
(5) Subsection (a)(3)(B) of section 2534 of title 10, United States 
Code, as amended by paragraph (1), shall apply only to contracts 
entered into after March 31, 1996. 
(b) EXTENSION OF LIMITATION RELATING TO BALL BEARINGS 
AND ROLLER BEARINGS.—-Section 2534(c)(3) of such title is amended 
by striking out "October 1, 1995" and inserting in lieu thereof 
"October 1, 2000". 
(c) TERMINATION OF VESSEL PROPELLER LIMITATION.—Section 
2534(c) of such title is anfended by adding at the end the following 
new paragraph: 
"(4) VESSEL PROPELLERS.—Subsection (a)(3)(A)(iii) and this Termination 
paragraph shall cease to be effective on the date occurring date, 
two years after the date of the enactment of the National 
Defense Authorization Act for Fiscal Year 1996.". 
(d) INAPPLICABILITY OF SIMPLIFIED ACQUISITION LIMITATION TO 
CONTRACTS FOR BALL BEARINGS AND ROLLER BEARINGS.—Section 
2534(g) of title 10, United States Code, is amended— 
(1) by inserting "(1)" before "This section"; and 
(2) by adding at the end the following new paragraph: 
"(2) Paragraph (1) does not apply to contracts for items 
described in subsection (a)(5) (relating to ball bearings and roller 
bearings), notwithstanding section 33 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 429).". 
SEC. 807. ENCOURAGEMENT OF USE OF LEASING AUTHORITY. 
(a) IN GENERAL.—(1) Section 2401a of title 10, United States 
Code, is amended— 
(A) by inserting before "The Secretary of Defense" the 
following subsection heading: "(b) LIMITATION ON CONTRACTS 
WITH TERMS OF 18 MONTHS OR MORE.—"; 
(B) by inserting after the section heading the following: 
"(a) LEASING OF COMMERCIAL VEHICLES AND EQUIPMENT.—The 
Secretary of Defense may use leasing in the acquisition of commer-
cial vehicles and equipment whenever the Secretary determines 
that leasing of such vehicles is practicable and efficient."; and 
(C) by amending the section heading to read as follows: 
110 STAT. 392 
PUBLIC LAW 104-106—FEB. 10, 1996 
10 u s e 2401a 
note. 
Reports. 
Reports. 
"§ 2401a. Lease of vehicles, equipment, vessels, and aircraft". 
(2) The item relating to section 2401a in the table of sections 
at the beginning of chapter 141 of such title is amended to read 
as follows: 
"2401a. Lease of vehicles, equipment, vessels, and aircraft.". 
(b) REPORT.—Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives a report 
setting forth changes in legislation that would be required to facili-
tate the use of leasing in the acquisition of equipment by the 
Department of Defense. 
(c) PILOT PROGRAM.—(1) The Secretary of the Army may con-
duct a pilot program for leasing commercial utility cargo vehicles 
in accordance with this subsection. 
(2) Under the pilot program— 
(A) the Secretary may trade existing commercial utility 
cargo vehicles of the Army for credit against the costs of leasing 
new replacement commercial utility cargo vehicles for the Army; 
(B) the quantities and trade-in value of commercial utility 
cargo vehicles to be traded in shall be subject to negotiation 
between the Secretary and the lessors of the new replacement 
commercial utility cargo vehicles; 
(C) the lease agreement for a new commercial utility cargo 
vehicle may be executed with or without an option to purchase 
at the end of the lease period; 
(D) the lease period for a new commercial utility cargo 
vehicle may not exceed the warranty period for the vehicle; 
and 
(E) up to 40 percent of the validated requirement for 
commercial utility cargo vehicles may be satisfied by leasing 
such vehicles, except that one or more options for satisfying 
the remainder of the validated requirement may be provided 
for and exercised (subject to the requirements of paragraph 
(6)). 
(3) In awarding contracts under the pilot program, the Sec-
retary shall comply with section 2304 of title 10, United States 
Code. 
(4) The pilot program may not be commenced until— 
(A) the Secretary submits to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report that contains the 
plans of the Secretary for implementing the program and that 
sets forth in detail the savings in operating and support costs 
expected to be derived from retiring older commercial utility 
cargo vehicles, as compared to the expected costs of leasing 
newer commercial utility cargo vehicles; and 
(B) a period of 30 calendar days has elapsed after submis-
sion of such report. 
(5) Not later than one year after the date on which the first 
lease under the pilot program is entered into, 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 on the status of the pilot program. 
Such report shall be based on at least six months of experience 
in operating the pilot program. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 393 
(6) The Secretary may exercise an option provided for under 
paragraph (2) only after a period of 60 days has elapsed after 
the submission of the report. 
(7) No lease of commercial utility cargo vehicles may be entered 
into under the pilot program after September 30, 2000. 
SEC. 808. COST REIMBURSEMENT RULES FOR 
INDIRECT COSTS 
10 USC 2501 
ATTRIBUTABLE TO PRIVATE SECTOR WORK OF DEFENSE 
note. 
CONTRACTORS. 
(a) DEFENSE CAPABILITY PRESERVATION AGREEMENT.—The Sec-
retary of Defense may enter into an agreement, to be known as 
a "defense capability preservation agreement", with a defense con-
tractor under which the cost reimbursement rules described in 
subsection (b) shall be applied. Such an agreement may be entered 
into in any case in which the Secretary determines that the applica-
tion of such cost reimbursement rules would facilitate the achieve-
ment of the policy objectives set forth in section 2501(b) of title 
10, United States Code. 
(b) COST REIMBURSEMENT RULES.—(1) The cost reimbursement 
rules applicable under an agreement entered into under subsection 
(a) are as follows: 
(A) The Department of Defense shall, in determining the 
reimbursement due a contractor for its indirect costs of perform-
ing a defense contract, allow the contractor to allocate indirect 
costs to its private sector work only to the extent of the contrac-
tor's allocable indirect private sector costs, subject to subpara-
graph (C). 
(B) For purposes of subparagraph (A), the allocable indirect 
private sector costs of a contractor are those costs of the contrac-
tor that are equal to the sum of— 
(i) the incremental indirect costs attributable to such 
work; and 
(ii) the amount by which the revenue attributable to 
such private sector work exceeds the sum of— 
(I) the direct costs attributable to such private 
sector work; and 
(II) the incremental indirect costs attributable to 
such private sector work. 
(C) The total amount of allocable indirect private sector 
costs for a contract in any year of the agreement may not 
exceed the amount of indirect costs that a contractor would 
have allocated to its private sector work during that year in 
accordance 
with 
the 
contractor's 
established 
accounting 
practices. 
(2) The cost reimbursement rules set forth in paragraph (1) 
may be modified by the Secretary of Defense if the Secretary of 
Defense determines that modifications are appropriate to the 
particular situation to facilitate achievement of the policy set forth 
in section 2501(b) of title 10, United States Code. 
(c) IMPLEMENTATION.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall establish 
application procedures and procedures for expeditious consideration 
of defense capability preservation agreements as authorized by this 
section. 
(d) CONTRACTS COVI^RED.—^An agreement entered into with a 
contractor under subsection (a) shall apply to each Department 
of Defense contract with the contractor in effect on the date on 
29-194 O - 96 - 14 : QL 3 Part 1 
110 STAT. 394 
PUBLIC LAW 104-106—FEB. 10, 1996 
which the agreement is entered into and each Department of 
Defense contract that is awarded to the contractor during the 
term of the agreement. 
(e) REPORTS.—Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report setting forth— 
(1) the number of applications received and the number 
of applications approved for defense capability preservation 
agreements; and 
(2) any changes to the authority in this section that the 
Secretary recommends to further facilitate the policy set forth 
in section 2501(b) of title 10, United States Code. 
SEC. 809. 
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 
before 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. 810. PROMPT RESOLUTION OF AUDIT RECOMMENDATIONS. 
Section 6009 of the Federal Acquisition Streamlining Act of 
5USCapp.5 
1994 (Public Law 103-355; 108 Stat. 3367) is amended to read 
note. 
as follows: 
"SEC. 6009. PROMPT MANAGEMENT DECISIONS AND IMPLEMENTA-
TION OF AUDIT RECOMMENDATIONS. 
"(a) MANAGEMENT DECISIONS.—(1) The head of a Federal 
agency shall make management decisions on all findings and rec-
ommendations 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. 
"(2) The head of a Federal agency shall make management 
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) COMPLETION OF FINAL ACTION.—^The head of a Federal 
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 period, the inspector general concerned shall 
identify the matter 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. 811. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE 
SUBCONTRACTING PLANS. 
(a) REVISION OF AUTHORITY.—Subsection (a) of section 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: 
Establishment. 
"(1) The Secretary of Defense shall establish a test program 
under which contracting activities in the military departments and 
the Defense Agencies are authorized to undertake one or more 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 395 
demonstration projects to determine whether the negotiation and 
administration of comprehensive subcontracting plans will reduce 
administrative burdens on contractors while enhancing opportuni-
ties 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 demonstration projects, the 
Secretary shall take such action as is necessary to ensure that 
a broad range of the supplies and services acquired by the Depart-
ment of Defense are included in the test program.". 
(b) COVERED CONTRACTORS.—Subsection (b) of such section is 
amended by striking out paragraph (3) and inserting in lieu thereof 
the following: 
"(3) A Department of Defense contractor referred to in para-
graph (1) is, with respect to a comprehensive subcontracting plan 
negotiated in any fiscal year, a business concern that, during the 
immediately preceding fiscal year, furnished the Department of 
Defense with supplies or services (including professional services, 
research and development services, and construction services) pur-
suant to at least three Department of Defense contracts having 
an aggregate 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. 812. PROCUREMENT OF ITEMS FOR EXPERiMENTAL OR TEST 
PURPOSES. 
Section 2373(b) of title 10, United States Code, is amended 
by inserting "only" after "applies" in the second sentence. 
SEC. 813. USE OF FUNDS FOR ACQUISITION OF DESIGNS, PROCESSES, 
TECHNICAL DATA, AND COMPUTER 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. 814. INDEPENDENT COST ESTIMATES FOR MAJOR DEFENSE 
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 control of the military 
department. Defense Agency, or other component of 
the Department of Defense that is directly responsible 
for carrying out the development or acquisition 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 Defense, by an office or other entity that is not 
directly responsible for carrying out the development 
or acquisition of the program; and". 
110 STAT. 396 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 815. CONSTRUCTION, REPAIR, ALTERATION, FURNISHING, AND 
EQUIPPING OF NAVAL VESSELS. 
(a) APPLICABILITY OF CERTAIN LAW.—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, furnishing, or 
equipping of a naval vessel is subject to the Walsh-Healey Act 
(41 U.S.C. 35 et seq.) unless the President determines that this 
requirement is not in the interest of national defense.". 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating 
to section 7297 the following: 
"7299. Contracts: applicability of Walsh-Healey Act.". 
Subtitle B—Other Matters 
SEC. 821. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS. 
(a) FUNDING.—Of the amount authorized to be appropriated 
under section 301(5), $12,000,000 shall be available for carrying 
out the provisions of chapter 142 of title 10, United States Code. 
(b) SPECIFIC PROGRAMS.—Of the amounts made available pursu-
ant 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 assist-
ance in distressed areas referred to in subparagraph (B) of section 
2411(2) of such title. If there is an insufficient number of satisfac-
tory 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 Administration Services regions in 
accordance with section 2415 of such title. 
10 u s e 2302 
SEC. 822. DEFENSE FACILITY-WIDE PILOT PROGRAM. 
(a) AUTHORITY TO CONDUCT DEFENSE FACILITY-WIDE PILOT 
PROGRAM.—The Secretary of Defense may conduct a pilot program, 
to be known as the "defense facility-wide pilot program", for the 
purpose of determining the potential for increasing the efficiency 
and effectiveness of the acquisition process in facilities by using 
commercial practices on a facility-wide basis. 
(b) DESIGNATION OF PARTICIPATING FACILITIES.—(1) Subject to 
paragraph (2), the Secretary may designate up to two facilities 
as participants in the defense facility-wide pilot program. 
(2) The Secretary may designate for participation in the pilot 
program only those facilities that are authorized to be so designated 
in a law authorizing appropriations for national defense programs 
that is enacted after the date of the enactment of this Act. 
(c) SCOPE OF PROGRAM.—^At a facility designated as a partici-
pant in the pilot program, the pilot program shall consist of the 
following: 
(1) All contracts and subcontracts for defense supplies and 
services that are performed at the facility. 
(2) All Department of Defense contracts and all sub-
contracts under Department of Defense contracts performed 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 397 
elsewhere that the Secretary determines are directly and 
substantially related to the production of defense supplies and 
services at the facility and are necessary for the pilot program. 
(d) CRITERIA FOR DESIGNATION OF PARTICIPATING FACILITIES.— 
The Secretary shall establish criteria for selecting a facility for 
designation as a participant in the pilot program. In developing 
such criteria, the Secretary shall consider the following: 
(1) The number of existing and anticipated contracts and 
subcontracts performed at the facility— 
(A) for which contractors are required to provide cer-
tified cost or pricing data pursuant to section 2306a of 
title 10, United States Code; and 
(B) which are administered with the application of 
cost accounting standards under section 26(f) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 422(f)). 
(2) The relationship of the facility to other organizations 
and facilities performing under contracts with the Department 
of Defense and subcontracts under such contracts. 
(3) The impact that the participation of the facility under 
the 
pilot 
program 
would 
have 
on 
competing 
domestic 
manufacturers. 
(4) 
Such 
other 
factors 
as 
the 
Secretary 
considers 
appropriate. 
(e) NOTIFICATION.—(1) The Secretary shall transmit to the 
Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives a written 
notification of each facility proposed to be designated by the Sec-
retary for participation in the pilot program. 
(2) The Secretary shall include in the notification regarding 
a facility designated for participation in the program a management 
plan addressing the following: 
(A) The proposed treatment of research and development 
contracts or subcontracts to be performed at the facility during 
the pilot program. 
(B) The proposed treatment of the cost impact of the use 
of commercial practices on the award and administration of 
contracts and subcontracts performed at the facility. 
(C) The proposed method for reimbursing the contractor 
for existing and new contracts. 
(D) The proposed method for measuring the performance 
of the facility for meeting the management goals of the 
Secretary. 
(E) Estimates of the annual amount and the total amount 
of the contracts and subcontracts covered under the pilot 
program. 
(3)(A) The Secretary shall ensure that the management plan 
for a facility provides for attainment of the following objectives: 
(i) A significant reduction of the cost to the Government 
for programs carried out at the facility. 
(ii) A reduction of the schedule associated with programs 
carried out at the facility. 
(iii) An increased use of commercial practices and proce-
dures for programs carried out at the facility. 
(iv) Protection of a domestic manufacturer competing for 
contracts at such facility from being placed at a significant 
competitive disadvantage by the participation of the facility 
in the pilot program. 
110 STAT. 398 
PUBLIC LAW 104-106—FEB. 10, 1996 
(B) The management plan for a facility shall also require that 
all or substantially all of the contracts to be awarded and performed 
at the facility after the designation of that facility under subsection 
(b), and all or substantially all of the subcontracts to be awarded 
under those contracts and performed at the facility after the des-
ignation, be— 
(i) for the production of supplies or services on a firm-
fixed price basis; 
(ii) awarded without requiring the contractors or sub-
contractors to provide certified cost or pricing data pursuant 
to section 2306a of title 10, United States Code; and 
(iii) awarded and administered without the application of 
cost accounting standards under section 26(f) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 422(f)). 
(f) EXEMPTION FROM CERTAIN REQUIREMENTS.—In the case of 
a contract or subcontract that is to be performed at a facility 
designated for participation in the defense facility-wide pilot pro-
gram and that is subject to section 2306a of title 10, United States 
Code, or section 26(f) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 422(f)), the Secretary of Defense may exempt such 
contract or subcontract from the requirement to obtain certified 
cost or pricing data under such section 2306a or the requirement 
to apply mandatory cost accounting standards under such section 
26(f) if the Secretary determines that the contract or subcontract— 
(1) is within the scope of the pilot program (as described 
in subsection (c)); and 
(2) is fairly and reasonably priced based on information 
other than certified cost and pricing data. 
(g) SPECIAL AUTHORITY.—The authority provided under sub-
section (a) includes authority for the Secretary of Defense— 
(1) to apply any amendment or repeal of a provision of 
law made in this Act to the pilot program before the effective 
date of such amendment or repeal; and 
(2) to apply to a procurement of items other than commer-
cial items under such program— 
(A) the authority provided in section 34 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 430) to waive 
a provision of law in the case of commercial items, and 
(B) any exception applicable under this Act or the 
Federal Acquisition Streamlining Act of 1994 (Public Law 
103-355) (or an amendment made by a provision of either 
Act) in the case of commercial items, 
before the effective date of such provision (or amendment) 
to the extent that the Secretary determines necessary to test 
the application of such waiver or exception to procurements 
of items other than commercial items. 
(h) APPLICABILITY.—(1) Subsections (f) and (g) apply to the 
following contracts, if such contracts are within the scope of the 
pilot program at a facility designated for the pilot program under 
subsection (b): 
(A) A contract that is awarded or modified during the 
period described in paragraph (2). 
(B) A contract that is awarded before the beginning of 
such period, that is to be performed (or may be performed), 
in whole or in part, during such period, and that may be 
modified as appropriate at no cost to the Government. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 399 
(2) The period referred to in paragraph (1), with respect to 
a faciUty designated under subsection (b), is the period that— 
(A) begins 45 days after the date of the enactment of 
the Act authorizing the designation of that faciHty in accordance 
with paragraph (2) of such subsection; and 
(B) ends on September 30, 2000. 
(i) COMMERCIAL PRACTICES ENCOURAGED.—^With respect to con-
tracts and subcontracts within the scope of the defense faciUty-
wide pilot program, the Secretary of Defense may, to the extent 
the Secretary determines appropriate and in accordance with 
appHcable law, adopt commercial practices in the administration 
of contracts and subcontracts. Such commercial practices may 
include the following: 
(1) Substitution of commercial oversight and inspection 
procedures for Government audit and access to records. 
(2) Incorporation of commercial oversight, inspection, and 
acceptance procedures. 
(3) Use of alternative dispute resolution techniques (includ-
ing arbitration). 
(4) Elimination of contract provisions authorizing the 
Government to make unilateral changes to contracts. 
SEC. 823. TREATMENT OF DEPARTMENT OF DEFENSE CABLE TELE- 
Reports. 
VISION FRANCfflSE AGREEMENTS. 
Not later than 180 days after the date of the enactment of 
this Act, the chief judge of the United States Court of Federal 
Claims shall transmit to Congress a report containing an advisory 
opinion on the following two questions: 
(1) Is it within the power of the executive branch to treat 
cable television franchise agreements for the construction, 
installation, or capital improvement of cable television systems 
at military installations of the Department of Defense as con-
tracts under part 49 of the Federal Acquisition Regulation 
without violating title VI of the Communications Act of 1934 
(47 U.S.C. 521 et seq.)? 
(2) If the answer to the question in paragraph (1) is in 
the affirmative, is the executive branch required by law to 
so treat such franchise agreements? 
SEC. 824. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM. 
10 USC 2302 
Section 831(j)(l) of the National Defense Authorization Act 
for Fiscal Year 1991 (10 U.S.C. 2301 note) is amended by striking 
out "1995" and inserting in lieu thereof "1996". 
TITLE IX—DEPARTMENT OF DEFENSE 
ORGANIZATION AND MANAGEMENT 
Subtitle A—General Matters 
SEC. 901. ORGANIZATION OF THE OFFICE OF THE SECRETARY OF 
10 USC 131 note. 
DEFENSE. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The statutory provisions that as of the date of the 
enactment of this Act govern the organization of the Office 
of the Secretary of Defense have evolved from enactment of 
110 STAT. 400 
PUBLIC LAW 104-106—FEB. 10, 1996 
a number of executive branch legislative proposals and congres-
sional initiatives over a period of years. 
(2) The May 1995 report of the congressionally mandated 
Commission on Roles and Missions of the Armed Forces 
included a number of recommendations relating to the Office 
of the Secretary of Defense. 
(3) The Secretary of Defense has decided to create a special 
Department task force and to conduct other reviews to review 
many of the Commission's recommendations. 
(4) The Secretary of Defense has decided to institute a 
5 percent per year reduction of civilian personnel assigned 
to the Office of the Secretary of Defense, including the Washing-
ton Headquarters Service and the Defense Support Activities, 
for the period from fiscal year 1996 through fiscal year 2001. 
(5) Over the ten-year period from 1986 through 1995, 
defense spending in real dollars has been reduced by 34 percent 
and military end-strengths have been reduced by 28 percent. 
During the same period, the number of civilian employees of 
the Office of the Secretary of Defense has increased by 22 
percent. 
(6) To achieve greater efficiency and to revalidate the role 
and mission of the Office of the Secretary of Defense, a com-
prehensive review of the organizations and functions of that 
Office and of the personnel needed to carry out those functions 
is required. 
(b) REVIEW.—The Secretary of Defense shall conduct a further 
review of the organizations and functions of the Office of the Sec-
retary of Defense, including the Washington Headquarters Service 
and the Defense Support Activities, and the personnel needed to 
carry out those functions. The review shall include the following: 
(1) An assessment of the appropriate functions of the Office 
and whether the Office of the Secretary of Defense or some 
of its component parts should be organized along mission lines. 
(2) An assessment of the adequacy of the present organiza-
tional structure to efficiently and effectively support the Sec-
retary in carrying out his responsibilities in a manner that 
ensures civilian authority in the Department of Defense. 
(3) An assessment of the advantages and disadvantages 
of the use of political appointees to fill the positions of the 
various Under Secretaries of Defense, Assistant Secretaries 
of Defense, and Deputy Under Secretaries of Defense. 
(4) An assessment of the extent of unnecessary duplication 
of functions between the Office of the Secretary of Defense 
and the Joint Staff. 
(5) An assessment of the extent of unnecessary duplication 
of functions between the Office of the Secretary of Defense 
and the military departments. 
(6) An assessment of the appropriate number of positions 
referred to in paragraph (3) and of Deputy Assistant Secretaries 
of Defense. 
(7) An assessment of whether some or any of the functions 
currently performed by the Office of Humanitarian and Refugee 
Affairs are more properly or effectively performed by another 
agency of Government or elsewhere within the Department 
of Defense. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 401 
(8) An assessment of the efficacy of the Joint Requirements 
Oversight Council and whether it is advisable or necessary 
to establish a statutory charter for this organization. 
(9) An assessment of any benefits or efficiencies derived 
from decentralizing certain functions currently performed by 
the Office of the Secretary of Defense. 
(10) An assessment of the appropriate size, number, and 
functional responsibilities of the Defense Agencies and other 
Department of Defense support organizations. 
(c) REPORT.—^Not later than March 1, 1996, the Secretary of 
Defense shall submit to the congressional defense committees a 
report containing — 
(1) his findings and conclusions resulting from the review 
under subsection (b); and 
(2) a plan for implementing resulting recommendations, 
including proposals for legislation (with supporting rationale) 
that would be required as a result of the review. 
(d) PERSONNEL REDUCTION.—(1) Effective October 1, 1999, the 
Effective date. 
number of OSD personnel may not exceed 75 percent of the number 
of OSD personnel as of October 1, 1994. 
(2) For purposes of this subsection, the term "OSD personnel" 
means military and civilian personnel of the Department of Defense 
who are assigned to, or employed in, functions in the Office of 
the Secretary of Defense (including Direct Support Activities of 
that Office and the Washington Headquarters Services of the 
Department of Defense). 
(3) In carrying out reductions in the number of personnel 
assigned to, or employed in, the Office of the Department of Defense 
in order to comply with paragraph (1), the Secretary may not 
reassign functions solely in order to evade the requirement con-
tained in that paragraph. 
(4) If the Secretary of Defense determines, and certifies to 
Congress, that the limitation in paragraph (1) would adversely 
affect United States national security, the limitation under para-
graph (1) shall be applied by substituting "80 percent" for "75 
percent". 
SEC. 902. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF 
DEFENSE POSITIONS. 
(a) REDUCTION.—Section 138(a) of title 10, United States Code, 
is amended by striking out "eleven" and inserting in lieu thereof 
"ten". 
(b) CONFORMING AMENDMENT.—Section 5315 of title 5, United 
States Code, is amended by striking out "(11)" after "Assistant 
Secretaries of Defense" and inserting in lieu thereof "(10)". 
SEC. 903. 
DEFERRED REPEAL OF VARIOUS STATUTORY POSITIONS 
AND 
OFFICES 
IN 
OFFICE 
OF 
THE 
SECRETARY 
OF 
DEFENSE. 
(a) EFFECTIVE DATE.—The amendments made by this section 
lo use I3i note. 
shall take effect on January 31, 1997. 
(b) TERMINATION OF SPECIFICATION BY LAW OF A S D POSI-
TIONS.—Subsection (b) of section 138 of title 10, United States 
Code, is amended to read as follows: 
"(b) The Assistant Secretaries shall perform such duties and 
exercise such powers as the Secretary of Defense may prescribe.". 
(c) REPEAL OF CERTAIN OSD PRESIDENTIAL APPOINTMENT POSI-
TIONS.—The following sections of chapter 4 of such title are 
repealed: 
110 STAT. 402 
PUBLIC LAW 104-106—FEB. 10, 1996 
(1) Section 133a, relating to the Deputy Under Secretary 
of Defense for Acquisition and Technology. 
(2) Section 134a, relating to the Deputy Under Secretary 
of Defense for Policy. 
(3) Section 137, relating to the Director of Defense Research 
and Engineering. 
(4) Section 142, relating to the Assistant to the Secretary 
of Defense for Nuclear and Chemical and Biological Defense 
Programs. 
(d) 
DIRECTOR OF MILITARY RELOCATION ASSISTANCE 
PRO-
GRAMS.—Section 1056 of such title is amended by striking out 
subsection (d). 
(e) CONFORMING AMENDMENTS RELATING TO REPEAL OF VAR-
IOUS OSD POSITIONS.—Chapter 4 of such title is further amended— 
(Din section 131(b)— 
(A) by striking out paragraphs (6) and (8); and 
(B) by redesignating paragraphs (7), (9), (10), and (11), 
as paragraphs (6), (7), (8), and (9), respectively; 
(2) in section 138(d), by striking out "the Under Secretaries 
of Defense, and the Director of Defense Research and Engineer-
ing" and inserting in lieu thereof "and the Under Secretaries 
of Defense"; and 
(3) in the table of sections at the beginning of the chapter, 
by striking out the items relating to sections 133a, 134a, 137, 
and 142. 
(D CONFORMING AMENDMENTS RELATING TO REPEAL OF SPECI-
FICATION OF ASD POSITIONS.— 
(1) Section 176(a)(3) of title 10, United States Code, is 
amended— 
(A) by striking out "Assistant Secretary of Defense 
for Health Affairs" and inserting in lieu thereof "official 
in the Department of Defense with principal responsibility 
for health affairs"; and 
(B) by striking out "Chief Medical Director of the 
Department of Veterans Affairs" and inserting in lieu 
thereof "Under Secretary for Health of the Department 
of Veterans Affairs". 
(2) Section 1216(d) of such title is amended by striking 
out "Assistant Secretary of Defense for Health Affairs" and 
inserting in lieu thereof "official in the Department of Defense 
with principal responsibility for health affairs". 
(3) Section 1587(d) of such title is amended by striking 
out "Assistant Secretary of Defense for Manpower and Logis-
tics" and inserting in lieu thereof "official in the Department 
of Defense with principal responsibility for personnel and 
readiness". 
(4) The text of section 10201 of such title is amended 
to read as follows: 
"The official in the Department of Defense with responsibility 
for overall supervision of reserve component affairs of the Depart-
ment of Defense is the official designated by the Secretary of 
Defense to have that responsibility.". 
(5) Section 1211(b)(2) of the National Defense Authorization 
Act for Fiscal Years 1988 and 1989 (P.L. 100-180; 101 Stat 
1155; 10 U.S.C. 167 note) is amended by striking out "the 
Assistant Secretary of Defense for Special Operations and Low 
Intensity Conflict" and inserting in lieu thereof "the official 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 403 
designated by the Secretary of Defense to have principal respon-
sibiHty for matters relating to special operations and low inten-
sity conflict". 
(g) REPEAL OF MINIMUM NUMBER OF SENIOR STAFF FOR SPECI-
FIED ASSISTANT 
SECRETARY OF DEFENSE.—Section 355 
of 
the 
National Defense Authorization Act for Fiscal Year 1991 (Public 
Law 101-510; 104 Stat. 1540) is repealed. 
SEC. 904. REDESIGNATION OF THE POSITION OF ASSISTANT 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 inserting in 
lieu thereof the following: 
"§ 142. Assistant to the Secretary of Defense for Nuclear and 
Chemical and Biological Defense 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 Defense 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; 
"(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 Secretary may 
prescribe.". 
(2) The item relating to such section in the table of sections 
at the beginning of chapter 4 of such title is amended to read 
as follows: 
"142. Assistant to the Secretary of Defense for Nuclear and Chemical am Biological 
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 Assistant 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 Nuclear and 
Chemical and Biological Defense Programs, Department of 
Defense.". 
SEC. 905. JOINT REQUIREMENTS OVERSIGHT COUNCIL. 
(a) IN GENERAL.—(1) Chapter 7 of title 10, United States Code, 
is amended by adding at the end the following new section: 
"§ 181. Joint Requirements Oversight Council 
"(a) ESTABLISHMENT.—^The Secretary of Defense shall establish 
a Joint Requirements Oversight Council in the Department of 
Defense. 
110 STAT. 404 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(b) MISSION.—In addition to other matters assigned to it by 
the President or Secretary of Defense, the Joint Requirements Over-
sight Council shall— 
"(1) assist the Chairman of the Joint Chiefs of Staff in 
identifying and assessing the priority of joint military require-
ments (including existing systems and equipment) to meet the 
national military strategy; 
"(2) assist the Chairman in considering alternatives to 
any acquisition program that has been identified to meet mili-
tary requirements by evaluating the cost, schedule, and 
performance criteria of the program and of the identified alter-
natives; and 
"(3) as part of its mission to assist the Chairman in assign-
ing joint priority among existing and future programs meeting 
valid requirements, ensure that the assignment of such prior-
ities conforms to and reflects resource levels projected by the 
Secretary of Defense through defense planning guidance. 
"(c) COMPOSITION.—(1) The Joint Requirements 
Oversight 
Council is composed of— 
"(A) the Chairman of the Joint Chiefs of Staff, who is 
the chairman of the Council; 
"(B) an Army officer in the grade of general; 
"(C) a Navy officer in the grade of admiral; 
"(D) an Air Force officer in the grade of general; and 
"(E) a Marine Corps officer in the grade of general. 
"(2) Members of the Council, other than the Chairman of the 
Joint Chiefs of Staff, shall be selected by the Chairman of the 
Joint Chiefs of StafT, after consultation with the Secretary of 
Defense, from officers in the grade of general or admiral, as the 
case may be, who are recommended for such selection by the Sec-
retary of the military department concerned. 
"(3) The functions of the Chairman of the Joint Chiefs of Staff 
as chairman of the Council may only be delegated to the Vice 
Chairman of the Joint Chiefs of Staff.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"181. Joint Requirements Oversight Council.". 
10 use 181 note. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on January 31, 1997. 
SEC. 906. RESTRUCTURING OF DEPARTMENT OF DEFENSE ACQUISI-
TION ORGANIZATION AND WORKFORCE. 
(a) RESTRUCTURING REPORT.—Not later than March 1, 1996, 
the Secretary of Defense shall submit to Congress a report on 
the acquisition organization and workforce of the Department of 
Defense. The report shall include— 
(1) the plan described in subsection (b); and 
(2) the assessment of streamlining and 
restructuring 
options described in subsection (c). 
(b) PLAN FOR RESTRUCTURING.—(1) The Secretary shall include 
in the report under subsection (a) a plan on how to restructure 
the current acquisition organization of the Department of Defense 
in a manner that would enable the Secretary to accomplish the 
following: 
(A) Reduce the number of military and civilian personnel 
assigned to, or employed in, acquisition organizations of the 
Department of Defense (as defined by the Secretary) by 25 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 405 
percent over a period of five years, beginning on October 1, 
1995. 
(B) Eliminate duplication of functions among existing 
acquisition organizations of the Department of Defense. 
(C) Maximize opportunity for consolidation among acquisi-
tion organizations of the Department of Defense to reduce 
management overhead. 
(2) In the report, the Secretary shall also identify any statutory 
requirement or congressional directive that inhibits any proposed 
restructuring plan or reduction in the size of the defense acquisition 
organization. 
(3) In designing the plan under paragraph (1), the Secretary 
shall give full consideration to the process efficiencies expected 
to be achieved through the implementation of the Federal Acquisi-
tion Streamlining Act of 1994 (Public Law 103-355), the Federal 
Acquisition Reform Act of 1995 (division D of this Act), and other 
ongoing initiatives to increase the use of commercial practices and 
reduce contract overhead in the defense procurement system. 
(c) ASSESSMENT OF SPECIFIED RESTRUCTURING OPTIONS.—The 
Secretary shall include in the report under subsection (a) a detailed 
assessment of each of the following options for streamlining and 
restructuring the existing defense acquisition organization, together 
with a specific recommendation as to whether each such option 
should be implemented: 
(1) Consolidation of certain functions of the Defense Con-
tract Audit Agency and the Defense Contract Management 
Command. 
(2) Contracting for performance of a significant portion 
of the workload of the Defense Contract Audit Agency and 
other Defense Agencies that perform acquisition functions. 
(3) Consolidation or selected elimination of Department 
of Defense acquisition organizations. 
(4) Any other defense acquisition infrastructure streamlin-
ing or restructuring option the Secretary may determine. 
(d) REDUCTION OF ACQUISITION WORKFORCE.—(1) The Secretary 
of Defense shall accomplish reductions in defense acquisition 
personnel positions during fiscal year 1996 so that the total number 
of such personnel as of October 1, 1996, is less than the total 
number of such personnel as of October 1, 1995, by at least 15,000. 
(2) For purposes of this subsection, the term "defense acquisi-
tion personnel" means military and civilian personnel assigned 
to, or employed in, acquisition organizations of the Department 
of Defense (as specified in Department of Defense Instruction num-
bered 5000.58 dated January 14, 1992) with the exception of person-
nel who possess technical competence in trade-skill maintenance 
and repair positions involved in performing depot maintenance 
functions. 
SEC. 
907. REPORT ON NUCLEAR POSTURE REVIEW AND ON PLANS 
FOR NUCLEAR WEAPONS MANAGEMENT IN EVENT OF 
ABOLITION 
OF 
DEPARTMENT 
OF 
ENERGY. 
(a) REPORT REQUIRED.—The Secretary of Defense shall submit 
to Congress a report concerning the nuclear weapons complex. 
The report shall set forth— 
(1) the Secretary's views on the effectiveness of the Depart-
ment of Energy in managing the nuclear weapons complex, 
including the fulfillment of the requirements for nuclear weap-
110 STAT. 406 
PUBLIC LAW 104-106—FEB. 10, 1996 
ons established for the Department of Energy in the Nuclear 
Posture Review; and 
(2) the Secretary's recommended plan for the incorporation 
into the Department of Defense of the national security pro-
grams of the Department of Energy if the Department of Energy 
should be abolished and those programs be transferred to the 
Department of Defense. 
(b) DEFINITION.—For purposes of this section, the term "Nuclear 
Posture Review" means the Department of Defense Nuclear Posture 
Review as contained in the report entitled "Report of the Secretary 
of Defense to the President and the Congress", dated February 
19, 1995, or in subsequent such reports. 
(c) SUBMISSION O F REPORT.—The report under subsection (a) 
shall be submitted not later than March 15, 1996. 
10 u s e 111 note. 
SEC. 908. REDESIGNATION 
OF ADVANCED 
RESEARCH 
PROJECTS 
AGENCY. 
(a) REDESIGNATION.—^The agency in the Department of Defense 
known as the Advanced Research Projects Agency shall after the 
date of the enactment of this Act be designated as the Defense 
Advanced Research Projects Agency. 
(b) REFERENCES.—^Any reference in any law, regulation, docu-
ment, record, or other paper of the United States or in any provision 
of this Act to the Advanced Research Projects Agency shall be 
considered to be a reference to the Defense Advanced Research 
Projects Agency. 
Subtitle B—Financial Management 
SEC. 911. TRANSFER AUTHORITY REGARDING FUNDS AVAILABLE FOR 
FOREIGN CURRENCY FLUCTUATIONS. 
(a) TRANSFERS TO MILITARY PERSONNEL ACCOUNTS AUTHOR-
IZED.—Section 2779 of title 10, United States Code, is amended 
by adding at the end the following: 
"(c) TRANSFERS TO MILITARY PERSONNEL ACCOUNTS.—The Sec-
retary of Defense may transfer funds to military personnel appro-
priations for a fiscal year out of funds available to the Department 
of Defense for that fiscal year under the appropriation 'Foreign 
Currency Fluctuations, Defense'.". 
(b) REVISION AND CODIFICATION OF AUTHORITY FOR TRANSFERS 
TO FOREIGN CURRENCY FLUCTUATIONS ACCOUNT.—Section 2779 of 
such title, as amended by subsection (a), is further amended by 
adding at the end the following: 
"(d) 
TRANSFERS 
TO 
FOREIGN 
CURRENCY 
FLUCTUATIONS 
ACCOUNT.—(1) The Secretary of Defense may transfer to the appro-
priation 'Foreign Currency Fluctuations, Defense' 
unobligated 
amounts of funds appropriated for operation and maintenance and 
unobligated amounts of funds appropriated for military personnel. 
"(2) Any transfer from an appropriation under paragraph (1) 
shall be made not later than the end of the second fiscal year 
following the fiscal year for which the appropriation is provided. 
"(3) Any transfer made pursuant to the authority provided 
in this subsection shall be limited so that the amount in the 
appropriation 'Foreign Currency Fluctuations, Defense' does not 
exceed $970,000,000 at the time the transfer is made.". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 407 
(c) CONDITIONS OF AVAILABILITY FOR TRANSFERRED FUNDS.— 
Section 2779 of such title, as amended by subsection (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 and for the same 
period as the appropriations to which transferred.". 
(d) REPEAL OF SUPERSEDED PROVISIONS.—(1) Section 767A of 
Public Law 96-527 (94 Stat. 3093) is repealed. 
(2) Section 791 of the Department of Defense Appropriation 
Act, 1983 (enacted in section 101(c) of Public Law 97-377; 96 
Stat. 1865) is repealed. 
10 USC 114 note. 
(e) TECHNICAL AMENDMENTS.—Section 2779 of title 10, United 
States Code, is amended— 
(1) in subsection (a), by striking out "(a)(1)" and inserting 
in lieu thereof "(a) TRANSFERS BACK TO FOREIGN CURRENCY 
FLUCTUATIONS APPROPRIATION.—(1)"; 
(2) in subsection (a)(2), by striking out "2d fiscal year" 
and inserting in lieu thereof "second fiscal year"; and 
(3) in subsection (b), by striking out "(b)(1)" and inserting 
in lieu thereof "(b) 
FUNDING 
FOR 
LOSSES 
IN 
MILITARY 
CONSTRUCTION AND FAMILY HOUSING.—(1)". 
(f) EFFECTIVE DATE.—Subsections (c) and (d) of section 2779 
lo USC 2779 
of title 10, United States Code, as added by subsections (a) and 
^o^-
(b), and the repeals made by subsection (d), shall apply only with 
respect to amounts appropriated for a fiscal year after fiscal year 
1995. 
SEC. 912. DEFENSE MODERNIZATION ACCOUNT. 
(a) ESTABLISHMENT AND USE.—(1) Chapter 131 of title 10, 
United States Code, is amended by inserting after section 2215 
the following new section: 
*
*
§ 2216. Defense Modernization Account 
"(a) ESTABLISHMENT.—There is established in the Treasury an 
account to be known as the 'Defense Modernization Account'. 
"(b) TRANSFERS TO ACCOUNT.—(1)(A) Upon a determination by 
the Secretary of a military department or the Secretary of Defense 
with respect to Defense-wide appropriations accounts of the avail-
ability and source of funds described in subparagraph (B), that 
Secretary may transfer to the Defense Modernization Account dur-
ing any fiscal year any amount of funds available to the Secretary 
described in that subparagraph. Such funds may be transferred 
to that account only after the Secretary concerned notifies the 
congressional defense committees in writing of the amount and 
source of the proposed transfer. 
"(B) This subsection applies to the following funds available 
to the Secretary concerned: 
"(i) Unexpired funds in appropriations accounts that are 
available for procurement and that, as a result of economies, 
efficiencies, and other savings achieved in carrying out a 
particular procurement, are excess to the requirements of that 
procurement. 
"(ii) Unexpired funds that are available during the final 
30 days of a fiscal year for support of installations and facilities 
and that, as a result of economies, efficiencies, and other sav-
110 STAT. 408 
PUBLIC LAW 104-106—FEB. 10, 1996 
ings, are excess to the requirements for support of installations 
and facilities. 
Regulations. 
"(C) Any transfer under subparagraph (A) shall be made under 
regulations prescribed by the Secretary of Defense. 
"(2) Funds referred to in paragraph (1) may not be transferred 
to the Defense Modernization Account if— 
"(A) theXfunds are necessary for programs, projects, and 
activities thatv as determined by the Secretary, have a higher 
priority than tneL^purposes for which the funds would be avail-
able 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. 
"(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 may not be extended 
by transfer into the Defense Modernization Account. 
"(c) SCOPE OF USE OF FUNDS.—Funds transferred to the Defense 
Modernization Account from funds appropriated for a military 
department, Defense Agency, or other element of the Department 
of Defense shall be available in accordance with subsections (f) 
and (g) only for transfer to funds available for that military depart-
ment. Defense Agency, or other element. 
"(d) AUTHORIZED USE OF FUNDS.—Funds available from the 
Defense Modernization Account pursuant to subsection (f) or (g) 
may be used for the following purposes: 
"(1) For increasing, subject to subsection (e), the quantity 
of items and services procured under a procurement program 
in order to achieve a more efficient production or delivery 
rate. 
"(2) For research, development, test, and evaluation and 
for procurement necessary for modernization of an existing 
system or of a system being procured under an ongoing procure-
ment program. 
"(e) LIMITATIONS.—(1) Funds in the Defense Modernization 
Account may not be used to increase the quantity of an item 
or services procured under a particular procurement 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 by law on the quantity 
of the items or services that may be procured; or 
"(ii) the requirement for the items or services 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 by law on the amount 
that may be obligated or expended, respectively, for that 
procurement program. 
"(2) Funds in the Defense Modernization Account may not 
be used for a purpose or program for which Congress has not 
authorized appropriations. 
"(3) Funds may not be transferred from the Defense Moderniza-
tion Account in any year for the purpose of— 
PUBLIC LAW 104-10&—FEB. 10, 1996 
110 STAT. 409 
"(A) making an expenditure for which there is no cor-
responding obligation; or 
"(B) making an expenditure that would satisfy an unliqui-
dated or unrecorded obligation arising in a prior fiscal year. 
"(f) TRANSFER OF FUNDS.—(1) The Secretary of Defense may 
transfer funds in the Defense Modernization Account to appropria-
tions available for purposes set forth in subsection (d). 
"(2) Funds in the Defense Modernization Account may not 
Notification. 
be transferred under paragraph (1) until 30 days after the date 
on which the Secretary concerned notifies the congressional defense 
committees in writing of the amount and purpose of the proposed 
transfer. 
"(3) The total amount of transfers from the Defense Moderniza-
tion Account during any fiscal year under this subsection may 
not exceed $500,000,000. 
"(g) AVAILABILITY OF FUNDS BY APPROPRIATION.—In addition 
to transfers under subsection (f), funds in the Defense Moderniza-
tion Account may be made available for purposes set forth in 
subsection (d) in accordance with the provisions of appropriations 
Acts, but only to the extent authorized in an Act other than an 
appropriations Act. 
"(h) SECRETARY TO ACT THROUGH COMPTROLLER.—The Sec-
retary of Defense shall carry out this section through the Under 
Secretary of Defense (Comptroller), who shall be authorized to 
implement this section through the issuance of any necessary regu-
lations, policies, and procedures after consultation with the General 
Counsel and Inspector General of the Department of Defense. 
"(i) QUARTERLY REPORTS.—(1) Not later than 15 days after 
the end of each calendar quarter, the Secretary of Defense shall 
submit to the congressional committees specified in paragraph (2) 
a report on the Defense Modernization Account. Each such report 
shall set forth the following: 
"(A) The amount and source of each credit to the account 
during that quarter. 
"(B) The amount and purpose of each transfer from the 
account during that quarter. 
"(C) The balance in the account at the end of the quarter 
and, of such balance, the amount attributable to transfers to 
the account from each Secretary concerned. 
"(2) The committees referred to in paragraph (1) are the 
congressional defense committees and the Committee on Govern-
mental Affairs of the Senate and the Committee on Government 
Reform and Oversight of the House of Representatives. 
"(j) DEFINITIONS.—In this section: 
"(1) The term 'Secretary concerned' includes the Secretary 
of Defense 
with 
respect 
to Defense-wide 
appropriations 
accounts. 
"(2) The term 'unexpired funds' means funds appropriated 
for a definite period that remain available for obligation. 
"(3) The term 'congressional defense committees' means— 
"(A) the Committee on Armed Services and the 
Committee on Appropriations of the Senate; and 
"(B) the Committee on National Security and the 
Committee 
on 
Appropriations 
of 
the 
House 
of 
Representatives.". 
note. 
110 STAT. 410 
PUBLIC LAW 104-106—FEB. 10, 1996 
(2) The table of sections at the beginning of chapter 131 of 
such title is amended by inserting after the item relating to section 
2215 the following new item: 
"2216. Defense Modernization Account.". 
10 use 2216 
(b) EFFECTIVE DATE.—Section 2216 of title 10, United States 
^°^- 
Code (as added by subsection (a)), shall apply only to funds appro-
priated for fiscal years after fiscal year 1995. 
10 use 2216 
(c) EXPIRATION OF AUTHORITY AND ACCOUNT.—(1) The authority 
note. 
under section 2216(b) of title 10, United States Code (as added 
by subsection (a)), to transfer funds into the Defense Modernization 
Account terminates at the close of September 30, 2003. 
(2) Three years after the termination date specified in para-
graph (1), the Defense Modernization Account shall be closed and 
any remaining balance in the account shall be canceled and there-
after shall not be available for any purpose. 
Reports. 
(d) GAO REVIEWS.—(1) The Comptroller General of the United 
10 use 2216 
States shall conduct two reviews of the administration of the 
Defense Modernization Account. In each review, the Comptroller 
General shall assess the operations and benefits of the account. 
(2) Not later than March 1, 2000, the Comptroller General 
shall— 
(A) complete the first review; and 
(B) submit to the specified committees of Congress an 
initial report on the administration and benefits of the Defense 
Modernization Account. 
(3) Not later than March 1, 2003, the Comptroller General 
shall— 
(A) complete the second review; and 
(B) submit to the specified committees of Congress a final 
report on the administration and benefits of the Defense Mod-
ernization Account. 
(4) Each such report shall include any recommended legislation 
regarding the account that the Comptroller General considers 
appropriate. 
(5) For purposes of this subsection, the term "specified commit-
tees of Congress" means the congressional committees referred to 
in section 2216(i)(2) of title 10, United States Code, as added 
by subsection (a). 
SEC. 913. DESIGNATION AND LIABILITY OF DISBURSING AND CER-
TIFYING 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) in paragraph (1), by striking out "With the approval 
of a Secretary of a military department when the Secretary 
considers it necessary, a disbursing official of the military 
department" and inserting in lieu thereof "Subject to para-
graph (3), a disbursing 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 para-
graph (1) only with the approval of the Secretary of Defense or, 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 411 
in the case of a disbursing official of a military department, the 
Secretary of that military department."; 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 sub-
section (a)(1)(B) of this section as having authorization 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 AJVIENDMENTS.—(1) Section 1012 of title 37, 
United States Code, is amended by striking out "Secretary con-
cerned" both places it appears and inserting in lieu thereof "Sec-
retary of Defense". 
(2) Section 1007(a) of title 37, United States Code, is amended 
by striking out "Secretary concerned" and inserting in lieu thereof 
"Secretary of Defense, or upon the denial of relief of an officer 
pursuant to section 3527 of title 31". 
(3)(A) Section 7863 of title 10, United States Code, is amended— 
(i) in the first sentence, by striking out "disbursements 
of public moneys or" and "the money was paid or"; and 
(ii) in the second sentence, by striking out "disbursement 
or". 
(B)(i) The heading of such section is amended to read as follows: 
"§7863. Disposal of public stores by order of commanding 
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 amend-
ed— 
(A) by striking out "a disbursing official of the armed 
forces" and inserting in lieu thereof "an official 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 section 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; 
(D) by inserting before clause (i), as so redesignated, the 
following: 
"(A) in the case of a physical loss or deficiency—"; 
(E) in clause (iii), as so redesignated, 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 section 
3528(a)(4)(A) of this title, the Secretary of Defense or the Sec-
retary of the appropriate military department, after taking 
a diligent collection action, finds that the criteria of section 
3528(b)( 1) of this title are satisfied.". 
110 STAT. 412 
PUBLIC LAW 104-106—FEB. 10, 1996 
(5) Section 3528 of title 31, United States Code, is amended 
by striking out subsection (d). 
SEC. 914. FISHER HOUSE TRUST FUNDS. 
(a) ESTABLISHMENT.—(1) Chapter 131 of title 10, United States 
Code, is amended by adding at the end the following new section: 
''§ 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 attributable to earnings 
or gains realized from investments shall be available for the oper-
ation and maintenance of Fisher houses that are located in proxim-
ity to medical treatment facilities of the Army. 
"(2) Amounts in the Fisher House Trust Fund, Department 
of the Air Force, that are attributable to earnings or gains realized 
from investments shall be available for the operation and mainte-
nance 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 section 
1321(b)(2) of title 31. 
"(d) FISHER HOUSE DEFINED.—In this section, the term 'Fisher 
house' means a housing facility that— 
"(1) is located in proximity to a medical treatment facility 
of the Army or the Air Force; and 
"(2) is available for residential use on a temporary 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 chapter 
is amended by adding at the end the following new item: 
"2221. Fisher House trust funds.". 
10 use 2221 
(b) CORPUS OF TRUST FUNDS.—(1) The Secretary of the Treasury 
note. 
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 
(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 facilities that, as of the date of the 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 413 
enactment of this Act, are available for operation and maintenance 
of Fisher houses (as defined in subsection (d) 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 following: 
"(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 Trust Fund')" and inserting in 
lieu thereof "Except as provided in paragraph (2), amounts 
accruing 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 may 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 following provi-
sions 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). 
SEC. 915. LIMITATION ON USE OF AUTHORITY TO PAY FOR EMER-
GENCY AND EXTRAORDINARY EXPENSES. 
Section 127 of title 10, United States Code, is amended— 
(1) by redesignating subsection (c) as subsection (d); and 
(2) by inserting after subsection (b) the following new sub-
section (c): 
"(c)(1) Funds may not be obligated or expended in an amount 
Notification. 
in excess of $500,000 under the authority of subsection (a) or 
(b) until the Secretary of Defense has notified the Committee on 
Armed Services and the Committee on Appropriations of the Senate 
and the Committee on National Security and the Committee on 
Appropriations of the House of Representatives 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 United States will be com-
promised by the application of the subparagraph to the obligation 
or expenditure. If the Secretary makes a determination with respect 
Notification. 
110 STAT. 414 
PUBLIC LAW 104-106—FEB. 10, 1996 
to an obligation or expenditure under the preceding sentence, the 
Secretary shall immediately notify the committees referred to in 
paragraph (1) that such obligation or expenditure is necessary 
and provide any relevant information (in classified form, if nec-
essary) jointly to the chairman and ranking minority member (or 
their designees) of such committees. 
"(3) A notification under paragraph (1) and information referred 
to in paragraph (2) shall include the amount to be obligated or 
expended, as the case may be, and the purpose of the obligation 
or expenditure.". 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—(1) Upon deter-
mination 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 Secretary of 
Defense may transfer under the authority of this section may not 
exceed $2,000,000,000. 
(b) LIMITATIONS.—^The authority provided by this section to 
transfer authorizations— 
(1) may only be used to provide authority for items that 
have a higher priority than the items from which authority 
is transferred; and 
(2) may not be used to provide authority for an item that 
has been denied authorization by Congress. 
(c) EFFECT ON AUTHORIZATION AMOUNTS.—^A transfer made 
from one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the account 
to which the amount is transferred by an amount equal to the 
amount transferred. 
(d) NOTICE TO CONGRESS.—^The Secretary shall promptly notify 
Congress of each transfer made under subsection (a). 
10 u s e 114 note. 
SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX. 
(a) STATUS OF CLASSIFIED ANNEX.—The Classified Annex pre-
pared by the committee on conference to accompany the bill H.R. 
1530 of the One Hundred Fourth Congress and transmitted to 
the President is hereby incorporated into this Act. 
(b) CONSTRUCTION WITH OTHER PROVISIONS OF ACT.—The 
amounts specified in the Classified Annex are not in addition to 
amounts authorized to be appropriated by other provisions of this 
Act. 
(c) LIMITATION ON USE OF FUNDS.—Funds appropriated pursu-
ant to an authorization contained in this Act that are made avail-
able for a program, project, or activity referred to in the Classified 
Annex may only be expended for such program, project, or activity 
^^ accordance with such terms, conditions, limitations, restrictions. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 415 
and requirements as are set out for that program, project, or activity 
in the Classified Annex. 
(d) DISTRIBUTION OF CLASSIFIED ANNEX.—The President shall President. 
provide for appropriate distribution of the Classified Annex, or 
of appropriate portions of the annex, within the executive branch 
of the Government. 
SEC. 1003. IMPROVED FUNDING MECHANISMS FOR UNBUDGETED 
OPERATIONS. 
(a) REVISION OF FUNDING MECHANISM.—(1) Section 127a of 
title 10, United States Code, is amended to read as follows: 
"§ 127a. Operations for which funds are not provided in 
advance: funding mechanisms 
"(a) IN GENERAL.—(1) The Secretary of Defense shall use the 
procedures prescribed by this section with respect to any operation 
specified in paragraph (2) that involves— 
"(A) the deplo3anent (other than for a training exercise) 
of elements of the Armed Forces for a purpose other than 
a purpose for which funds have been specifically provided in 
advance; or 
"(B) the provision of humanitarian assistance, disaster 
relief, or support for law enforcement (including immigration 
control) for which funds have not been specifically provided 
in advance. 
"(2) This section applies to— 
"(A) any operation the incremental cost of which is expected 
to exceed $50,000,000; and 
"(B) any other operation the expected incremental cost 
of which, when added to the expected incremental costs of 
other operations that are currently ongoing, is expected to 
result in a cumulative incremental cost of ongoing operations 
of the Department of Defense in excess of $100,000,000. 
Any operation the incremental cost of which is expected not to 
exceed $10,000,000 shall be disregarded for the purposes of subpara-
graph (B). 
"(3) Whenever an operation to which this section applies is Notification. 
commenced or subsequently becomes covered by this section, the 
Secretary of Defense shall designate and identify that operation 
for the purposes of this section and shall promptly notify Congress 
of that designation (and of the identification of the operation). 
"(4) This section does not provide authority for the President 
or the Secretary of Defense to carry out any operation, but estab-
lishes mechanisms for the Department of Defense by which funds 
are provided for operations that the armed forces are required 
to carry out under some other authority. 
"(b) WAIVER OF REQUIREMENT TO REIMBURSE SUPPORT UNITS.— 
(1) The Secretary of Defense shall direct that, when a unit of 
the Armed Forces participating in an operation described in sub-
section (a) receives services from an element of the Department 
of Defense that operates through the Defense Business Operations 
Fund (or a successor fund), such unit of the Armed Forces may 
not be required to reimburse that element for the incremental 
costs incurred by that element in providing such services, notwith-
standing any other provision of law or any Government accounting 
practice. 
110 STAT. 416 
PUBLIC LAW 1P4-106—FEB. 10, 1996 
Records. 
"(2) The amounts which but for paragraph (1) would be required 
to be reimbursed to an element of the Department of Defense 
(or a fund) shall be recorded as an expense attributable to the 
operation and shall be accounted for separately. 
"(c) TRANSFER AUTHORITY.—(1) Whenever there is an operation 
of the Department of Defense described in subsection (a), the Sec-
retary of Defense may transfer amounts described in paragraph 
(3) to accounts from which incremental expenses for that operation 
were incurred in order to reimburse those accounts for those incre-
mental expenses. Amounts so transferred shall be merged with 
and be available for the same purposes as the accounts to which 
transferred. 
"(2) The total amount that the Secretary of Defense may trans-
fer under the authority of this section in any fiscal year is 
$200,000,000. 
"(3) Transfers under this subsection may only be made from 
amounts appropriated to the Department of Defense for any fiscal 
year that remain available for obligation, other than amounts within 
any operation and maintenance appropriation that are available 
for (A) an account (known as a budget activity 1 account) that 
is specified as being for operating forces, or (B) an account (known 
as a budget activity 2 account) that is specified as being for mobiliza-
tion. 
"(4) The authority provided by this subsection is in addition 
to any other authority provided by law authorizing the transfer 
of amounts available to the Department of Defense. However, the 
Secretary may not use any such authority under another provision 
of law for a purpose described in paragraph (1) if there is authority 
available under this subsection for that purpose. 
"(5) The authority provided by this subsection to transfer 
amounts may not be used to provide authority for an activity 
that has been denied authorization by Congress. 
"(6) A transfer made from one account to another under the 
authority of this subsection shall be deemed to increase the amount 
authorized for the account to which the amount is transferred 
by an amount equal to the amount transferred. 
"(d) REPORT UPON DESIGNATION OF AN OPERATION.—Within 
45 days after the Secretary of Defense identifies an operation pursu-
ant to subsection (a)(2), the Secretary of Defense shall submit 
to Congress a report that sets forth the following: 
"(1) The manner by which the Secretary proposes to obtain 
funds for the cost to the United States of the operation, includ-
ing a specific discussion of how the Secretary proposes to restore 
balances in— 
"(A) the Defense Business Operations Fund (or a 
successor fund), or 
"(B) the accounts from which the Secretary transfers 
funds under the authority of subsection (c), to the levels 
that would have been anticipated but for the provisions 
of subsection (c). 
"(2) If the operation is described in subsection (a)(1)(B), 
a justification why the budgetary resources of another depart-
ment or agency of the Federal Government, instead of resources 
of the Department of Defense, are not being used for carrying 
out the operation. 
"(3) The objectives of the operation. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 417 
"(4) The estimated duration of the operation and of any 
deployment of armed forces personnel in such operation. 
"(5) The estimated incremental cost of the operation to 
the United States. 
"(6) The exit criteria for the operation and for the with-
drawal of the elements of the armed forces involved in the 
operation. 
"(e) LIMITATIONS.—(1) The Secretary may not restore balances 
in the Defense Business Operations Fund through increases in 
rates charged by that fund in order to compensate for costs incurred 
and not reimbursed due to subsection (b). 
"(2) The Secretary may not restore balances in the Defense 
Business Operations Fund or any other fund or account through 
the use of unobligated amounts in an operation and maintenance 
appropriation that are available within that appropriation for (A) 
an account (known as a budget activity 1 account) that is specified 
as being for operating forces, or (B) an account (known as a budget 
activity 2 account) that is specified as being for mobilization. 
"(f) SUBMISSION OF REQUESTS FOR SUPPLEMENTAL APPROPRIA-
TIONS.—It is the sense of Congress that whenever there is an 
operation described in subsection (a), the President should, not 
later than 90 days after the date on which notification is provided 
pursuant to subsection (a)(3), submit to Congress a request for 
the enactment of supplemental appropriations for the then-current 
fiscal year in order to provide funds to replenish the Defense Busi-
ness Operations Fund or any other fund or account of the Depart-
ment of Defense from which funds for the incremental expenses 
of that operation were derived under this section and should, as 
necessary, submit subsequent requests for the enactment of such 
appropriations. 
"(g) 
INCREMENTAL 
COSTS.—For purposes of this 
section, 
incremental costs of the Department of Defense with respect to 
an operation are the costs of the Department that are directly 
attributable to the operation (and would not have been incurred 
but for the operation). Incremental costs do not include the cost 
of property or services acquired by the Department that are paid 
for by a source outside the Department or out of funds contributed 
by such a source. 
"(h) RELATIONSHIP TO WAR POWERS RESOLUTION.—This section 
may not be construed as altering or superseding the War Powers 
Resolution. This section does not provide authority to conduct any 
military operation. 
"(i) GAO COMPLIANCE REVIEWS.—The Comptroller General of 
the United States shall from time to time, and when requested 
by a committee of Congress, conduct a review of the defense funding 
structure under this section to determine whether the Department 
of Defense is complying with the requirements and limitations 
of this section.". 
(2) The item relating to section 127a in the table of sections 
at the beginning of chapter 3 of such title is amended to read 
as follows: 
"127a. Operations for which funds are not provided in advance: funding mecha-
nisms.". 
(b) EFFECTIVE DATE.—The amendment to section 127a of title 
lo USC I27a 
10, United States Code, made by subsection (a) shall take effect note, 
on the date of the enactment of this Act and shall apply to any 
110 STAT. 418 
PUBLIC LAW 104-106—FEB. 10, 1996 
operation of the Department of Defense that is in effect on or 
after that date, whether such operation is begun before, on, or 
after such date of enactment. In the case of an operation begun 
before such date, any reference in such section to the commence-
ment of such operation shall be treated as referring to the effective 
date under the preceding sentence. 
SEC. 1004. OPERATION PROVIDE COMFORT. 
(a) AUTHORIZATION OF AMOUNTS AvAiLABLE.^Within the total 
amounts authorized to be appropriated in titles III and IV, there 
is hereby authorized to be appropriated for fiscal year 1996 for 
costs associated with Operation Provide Comfort— 
(1) $136,300,000 for operation and maintenance costs; and 
(2) $7,000,000 for incremental military personnel costs. 
(b) REPORT.—^Not more than $70,000,000 of the amount appro-
priated under subsection (a) may be obligated until the Secretary 
of Defense submits to the congressional defense committees a report 
on Operation Provide Comfort which includes the following: 
(1) A detailed presentation of the projected costs to be 
incurred by the Department of Defense for Operation Provide 
Comfort during fiscal year 1996, together with a discussion 
of missions and functions expected to be performed by the 
Department as part of that operation during that fiscal year. 
(2) A detailed presentation of the projected costs to be 
incurred by other departments and agencies of the Federal 
Government participating in or providing support to Operation 
Provide Comfort during fiscal year 1996. 
(3) A discussion of available options to reduce the involve-
ment of the Department of Defense in those aspects of Oper-
ation Provide Comfort that are not directly related to the mili-
tary mission of the Department of Defense. 
(4) A plan establishing an exit strategy for United States 
involvement in, and support for. Operation Provide Comfort. 
(c) OPERATION PROVIDE COMFORT.—For purposes of this section, 
the term "Operation Provide Comfort" means the operation of the 
Department of Defense that as of October 30, 1995, is designated 
as Operation Provide Comfort. 
SEC. 1005. OPERATION ENHANCED SOUTHERN WATCH. 
(a) AUTHORIZATION OF AMOUNTS AVAILABLE.—^Within the total 
amounts authorized to be appropriated in titles III and IV, there 
is hereby authorized to be appropriated for fiscal year 1996 for 
costs associated with Operation Enhanced Southern Watch— 
(1) $433,400,000 for operation and maintenance costs; and 
(2) $70,400,000 for incremental military personnel costs. 
(b) REPORT.—(1) Of the amounts specified in subsection (a), 
not more than $250,000,000 may be obligated until the Secretary 
of Defense submits to the congressional defense committees a report 
designating Operation Enhanced Southern Watch, or significant 
elements thereof, as a forward presence operation for which funding 
should be budgeted as part of the annual defense budget process 
in the same manner as other activities of the Armed Forces involv-
ing forward presence or forward deployed forces. 
(2) The report shall set forth the following: 
(A) The expected duration and annual costs of the various 
elements of Operation Enhanced Southern Watch. 
(B) Those elements of Operation Enhanced Southern Watch 
that are semi-permanent in nature and should be budgeted 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 419 
in the future as part of the annual defense budget process 
in the same manner as other activities of the Armed Forces 
involving forward presence or forward deployed forces. 
(C) The political and military objectives associated with 
Operation Enhanced Southern Watch. 
(D) The contributions (both in-kind and actual) by other 
nations to the costs of conducting Operation Enhanced Southern 
Watch. 
(c) OPERATION ENRf^srcED SOUTHERN WATCH.—For purposes 
of this section, the term "Operation Enhanced Southern Watch" 
means the operation of the Department of Defense that as of Octo-
ber 30, 1995, is designated as Operation Enhanced Southern Watch. 
SEC. 1006. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED 
FISCAL YEAR 1995 DEFENSE APPROPRIATIONS. 
(a) AUTHORITY.—The amounts described in subsection (b) may 
be obligated and expended for programs, projects, and activities 
of the Department of Defense in accordance with fiscal year 1995 
defense appropriations. 
(b) COVERED AMOUNTS.—The amounts referred to in subsection 
(a) are the amounts provided for programs, projects, and activities 
of the Department of Defense in fiscal year 1995 defense appropria-
tions that are in excess of the amounts provided for such programs, 
projects, and activities in fiscal year 1995 defense authorizations. 
(c) DEFINITIONS.—For the purposes of this section: 
(1) FISCAL YEAR 1995 DEFENSE APPROPRIATIONS.—The term 
"fiscal year 1995 defense appropriations" means amounts appro-
priated or otherwise made available to the Department of 
Defense for fiscal year 1995 in the Department of Defense 
Appropriations Act, 1995 (Public Law 103-335). 
(2) FISCAL YEAR 1995 DEFENSE AUTHORIZATIONS.—The term 
"fiscal year 1995 defense authorizations" means amounts 
authorized to be appropriated for the Department of Defense 
for fiscal year 1995 in the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337). 
SEC. 1007. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL 
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 Authorization 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; 109 
Stat. 73). 
(b) NEW AUTHORIZATION.—The appropriation provided in sec-
tion 104 of such Act (109 Stat. 79) is hereby authorized. 
SEC. 1008. AUTHORIZATION REDUCTIONS TO 
REFLECT SAVINGS 
FROM REVISED ECONOMIC ASSUMPTIONS. 
(a) REDUCTION.—The total amount authorized to be appro-
priated in titles I, II, and III of this Act is hereby reduced by 
$832,000,000 to reflect savings from revised economic assumptions. 
110 STAT. 420 
PUBLIC LAW 104-106—FEB. 10, 1996 
Such reduction shall be made from accounts in those titles as 
follows: 
Operation and Maintenance, Army, $54,000,000. 
Operation and Maintenance, Navy, $80,000,000. 
Operation and Maintenance, Marine Corps, $9,000,000. 
Operation and Maintenance, Air Force, $51,000,000. 
Operation and Maintenance, Defense-Wide, $36,000,000. 
Operation and Maintenance, Army Reserve, $4,000,000. 
Operation and Maintenance, Navy Reserve, $4,000,000. 
Operation 
and 
Maintenance, 
Marine 
Corps 
Reserve, 
$1,000,000. 
Operation and Maintenance, Air Force Reserve, $3,000,000. 
Operation 
and 
Maintenance, Army National 
Guard, 
$7,000,000. 
Operation 
and 
Maintenance, 
Air 
National 
Guard, 
$7,000,000. 
Drug Interdiction and Counter-Drug Activities, Defense, 
$5,000,000. 
Environmental Restoration, Defense, $11,000,000. 
Overseas 
Humanitarian, 
Disaster, 
and 
Civic 
Aid, 
$1,000,000. 
Former Soviet Union Threat Reduction, $2,000,000. 
Defense Health Program, $51,000,000. 
Aircraft Procurement, Army, $9,000,000. 
Missile Procurement, Army, $5,000,000. 
Procurement of Weapons and Tracked Combat Vehicles, 
Army, $10,000,000. 
Procurement of Ammunition, Army, $6,000,000. 
Other Procurement, Army, $17,000,000. 
Aircraft Procurement, Navy, $29,000,000. 
Weapons Procurement, Navy, $13,000,000. 
Shipbuilding and Conversion, Navy, $42,000,000. 
Other Procurement, Navy, $18,000,000. 
Procurement, Marine Corps, $4,000,000. 
Aircraft Procurement, Air Force, $50,000,000. 
Missile Procurement, Air Force, $29,000,000. 
Other Procurement, Air Force, $45,000,000. 
Procurement, Defense-Wide, $16,000,000. 
Chemical Agents and Munitions Destruction, Defense, 
$5,000,000. 
Research, Development, Test and Evaluation, 
Army, 
$20,000,000. 
Research, Development, 
Test 
and 
Evaluation, 
Navy, 
$50,000,000. 
Research, Development, Test and Evaluation, Air Force, 
$79,000,000. 
Research, Development, Test and Evaluation, Defense-
Wide, $57,000,000. 
Research, Development, Test and Evaluation, Defense, 
$2,000,000. 
(b) REDUCTIONS TO BE APPLIED PROPORTIONALLY.—Reductions 
under this section shall be applied proportionally to each budget 
activity, activity group, and subactivity group and to each program, 
project, and activity within each account. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 421 
Subtitle B—Naval Vessels and Shipyards 
SEC. 1011. IOWA CLASS BATTLESfflPS. 
(a) RETURN TO NAVAL VESSEL REGISTER.—The Secretary of 
the Navy shall list on the Naval Vessel Register, and maintain 
on such register, at least two of the Iowa-class battleships that 
were stricken from the register in February 1995. 
(b) SUPPORT.—The Secretary shall retain the existing logistical 
support necessary for support of at least two operational Iowa 
class battleships in active service, including technical manuals, 
repair and replacement parts, and ordnance. 
(c) SELECTION OF SHIPS.—The Secretary shall select for hsting 
on the Naval Vessel Register under subsection (a) Iowa class battle-
ships that are in good material condition and can provide adequate 
fire support for an amphibious assault. 
(d) REPLACEMENT FIRE-SUPPORT CAPABILITY.—(1) If the Sec- Certification. 
retary of the Navy makes a certification described in paragraph 
Termination 
(2), the requirements of subsections (a) and (b) shall terminate, '^^*^-
effective 60 days after the date of the submission of such 
certification. 
(2) A certification referred to in paragraph (1) is a certification 
submitted by the Secretary of the Navy in writing to the Committee 
on Armed Services 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-suppoil capability that the Iowa class battleships 
listed on the Naval Vessel Register pursuant to subsection (a) 
would, if in active service, be able to provide for Marine Corps 
amphibious assaults and operations ashore. 
SEC. 1012. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN 
COUNTRIES. 
(a) TRANSFERS BY GR\NT.—The Secretary of the Navy is author-
ized to transfer on a grant basis under section 516 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 232Ij) frigates of the Oliver 
Hazard Perry class to other countries as follows: 
(1) To the Government of Bahrain, the guided missile frig-
ate Jack Williams (FFG 24). 
(2) To the Government of Egypt, the frigate Copeland (FFG 
25). 
(3) To the Government of Turkey, the frigates Clifton 
Sprague (FFG 16) and Antrim (FFG 20). 
(b) TRANSFERS BY LEASE OR SALE.—The Secretary of the Navy 
is authorized to transfer on a lease basis under section 61 of 
the Arms Export Control Act (22 U.S.C. 2796) or on a sale basis 
under section 21 of the Arms Export Control Act (22 U.S.C. 2761) 
frigates of the Oliver Hazard Perry class to other countries as 
follows: 
(1) To the Government of Egypt, the frigate Duncan (FFG 
10). 
(2) To the Government of Oman, the guided missile frigate 
Mahlon S. Tisdale (FFG 27). 
(3) To the Government of Turkey, the frigate Flatley (FFG 
21). 
(4) To the Government of the United Arab Emirates, the 
guided missile frigate Gallery (FFG 26). 
110 STAT. 422 
PUBLIC LAW 104-106—FEB. 10, 1996 
(c) FINANCING FOR TRANSFERS BY LEASE.—Section 23 of the 
Arms Export Control Act (22> U.S.C. 2763) may be used to provide 
financing for any transfer by lease under subsection (b) in the 
same manner as if such transfer were a procurement by the recipi-
ent nation of a defense article. 
(d) COSTS OF TRANSFERS.—^Any expense incurred by the United 
States in connection with a transfer authorized by subsection (a) 
or (b) shall be charged to the recipient. 
(e) EXPIRATION OF AUTHORITY.—The authority to transfer a 
vessel under subsection (a) and under subsection (b) shall expire 
at the end of the two-year period beginning on the date of the 
enactment of this Act, except that a lease entered into during 
that period under any provision of subsection (b) may be renewed. 
(f) 
REPAIR AND REFURBISHMENT IN UNITED STATES SHIP-
YARDS.—^The Secretary of the Navy shall require, as a condition 
of the transfer of a vessel under this section, that the country 
to which the vessel is transferred have such repair or refurbishment 
of the vessel as is needed, before the vessel joins the naval forces 
of that country, performed at a shipyard located in the United 
States, including a United States Navy shipyard. 
(g) PROHIBITION ON CERTAIN TRANSFERS OF VESSELS ON GRANT 
BASIS.—(1) Section 516 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2321J) is amended by adding at the end the following new 
subsection: 
"(g) PROHIBITION ON CERTAIN TRANSFERS OF VESSELS ON GRANT 
BASIS.—(1) The President may not transfer on a grant basis under 
this section a vessel that is in excess of 3,000 tons or that is 
less than 20 years of age. 
"(2) If the President determines that it is in the national 
security interests of the United States to transfer a particular 
vessel on a grant basis under this section, the President may 
request that Congress enact legislation exempting the transfer from 
the prohibition in paragraph (1).". 
Applicability. 
(2) The amendment made by paragraph (1) shall apply with 
22USC2321J 
respect to the transfer of a vessel on or after the date of the 
™*'®- 
enactment of this Act (other than a vessel the transfer of which 
is authorized by subsection (a) or by law before the date of the 
enactment of this Act). 
SEC. 1013. CONTRACT OPTIONS FOR LMSR VESSELS, 
(a) FINDINGS.—Congress makes the following findings: 
(1) A requirement for the Department of the Navy to 
acquire 19 large, medium-speed, roll-on/roll-off (LMSR) vessels 
was established by the Secretary of Defense in the Mobility 
Requirements Study conducted after the Persian Gulf War 
pursuant to section 909 of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1623) 
and was revalidated by the Secretary of Defense in the report 
entitled "Mobility Requirements Study Bottom-Up Review 
Update", submitted to Congress in April 1995. 
(2) The Strategic Sealift Program is a vital element of 
the national military strategy calling for the Nation to be 
able to fight and win two nearly simultaneous major regional 
contingencies. 
(3) The Secretary of the Navy has entered into contracts 
with shipyards covering acquisition of a total of 17 such LMSR 
vessels, of which five are vessel conversions and 12 are new 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 423 
construction vessels. Under those contracts, the Secretary has 
placed orders for the acquisition of 11 vessels and has options 
for the acquisition of six more, all of which would be new 
construction vessels. The options allow the Secretary to place 
orders for one vessel to be constructed at each of two shipyards 
for award before December 31, 1995, December 31, 1996, and 
December 31, 1997, respectively. 
(4) Acquisition of an additional two such LMSR vessels, 
for a total of 19 vessels (the requirement described in paragraph 
(1)) would contribute to preservation of the industrial base 
of United States shipyards capable of building auxiliary and 
sealift vessels. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that 
the Secretary of the Navy should plan for, and budget to provide 
for, the acquisition as soon as possible of a total of 19 large, 
medium-speed, roll-on/roll-off (LMSR) vessels (the number deter-
mined to be required in the Mobility Requirements Study referred 
to in subsection (a)( 1)), rather than only 17 such vessels (the number 
of vessels under contract as of May 1995). 
(c) ADDITIONAL NEW CONSTRUCTION CONTRACT OPTION.—^The 
Secretary of the Navy should negotiate with each of the two ship-
yards holding new construction contracts referred to in subsection 
(a)(3) (Department of the Navy contracts numbered N00024-93-
C-2203 and N00024-93-C-2205) for an option under each such 
contract for construction of one additional such LMSR vessel, with 
such option to be available to the Secretary for exercise during 
1995, 1996, or 1997, subject to the availability of funds authorized 
and appropriated for such purpose. Nothing in this subsection shall 
be construed to preclude the Secretary of the Navy from competing 
the award of the two options between the two shipyards holding 
new construction contracts referred to in subsection (a)(3). 
(d) REPORT.—The Secretary of the Navy shall submit to the 
congressional defense committees, by March 31, 1996, a report 
stating the intentions of the Secretary regarding the acquisition 
of options for the construction of two additional LMSR vessels 
as described in subsection (c). 
SEC. 1014. NATIONAL DEFENSE RESERVE FLEET. 
(a) AVAILABILITY OF NATIONAL DEFENSE SEALIFT FUND.—Sec-
tion 2218 of title 10, United States Code, is amended— 
(1) in subsection (c)(1)— 
(A) by striking out "only for—" in the matter preceding 
subparagraph (A) and inserting in lieu thereof "only for 
the following purposes:"; 
(B) by capitalizing the first letter of the first word 
of subparagraphs (A), (B), (C), and (D); 
(C) by striking out the semicolon at the end of subpara-
graphs (A) and (B) and inserting in lieu thereof a period; 
(D) by striking out "; and" at the end of subparagraph 
(C) and inserting in lieu thereof a period; and 
(E) by 
adding 
at 
the 
end 
the 
following 
new 
subparagraph: 
"(E) Expenses for maintaining the National 
Defense 
Reserve Fleet under section 11 of the Merchant Ship Sales 
Act of 1946 (50 U.S.C. App. 1744), and for the costs of acquisi-
tion of vessels for, and alteration and conversion of vessels 
110 STAT. 424 
PUBLIC LAW 104-106—FEB. 10, 1996 
in (or to be placed in), the fleet, but only for vessels built 
in United States shipyards."; and 
(2) in subsection (i), by inserting "(other than subsection 
(c)(lXE))" after "Nothing in this section". 
(b) CLARIFICATION OF EXEMPTION OF N D R F VESSELS FROM 
RETROFIT REQUIREMENT.—Section 11 of the Merchant Ship Sales 
Act of 1946 (50 U.S.C. App. 1744) is amended by adding at the 
end the following new subsection: 
"(e) Vessels in the National Defense Reserve Fleet are exempt 
from the provisions of section 3703a of title 46, United States 
Code.". 
(c) AUTHORITY TO USE NATIONAL DEFENSE SEALIFT FUND TO 
CONVERT TWO VESSELS.—Of the amount authorized to be appro-
priated in section 302 for fiscal year 1996 for the National Defense 
Sealift Fund under section 2218 of title 10, United States Code, 
not more than $20,000,000 shall be available for conversion work 
on the following two roll-on/roll-ofT vessels, which were acquired 
by the Maritime Administration during fiscal year 1995: 
(1) MA^ Cape Knox (ON-1036323). 
(2) MN Cape Kennedy (ON-1036324). 
SEC. 1015. NAVAL SALVAGE FACILITIES. 
Chapter 637 of title 10, United States Code, is amended 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. 
Contracts. 
"§ 7361. Authority to provide for necessary salvage facilities 
"(a) AUTHORITY.—^The Secretary of the Navy may provide, by 
contract or otherwise, necessary salvage facilities for public and 
private vessels. 
"(b) 
COORDINATION WITH SECRETARY OF TRANSPORTATION.— 
The Secretary shall submit to the Secretary of Transportation for 
comment each proposed contract for salvage facilities that affects 
the interests of the Department of Transportation. 
"(c) LIMITATION.—^The Secretary of the Navy may enter into 
a term contract under subsection (a) only if the Secretary deter-
mines that available commercial salvage facilities are inadequate 
to meet the requirements of national defense. 
"(d) PUBLIC NOTICE.—The Secretary may not enter into a con-
tract under subsection (a) until the Secretary has provided public 
notice of the intent to enter into such a contract. 
"§7362. Acquisition and transfer of vessels and equipment 
"(a) AUTHORITY.—The Secretary of the Navy may acquire or 
transfer for operation by private salvage companies such vessels 
and equipment as the Secretary considers necessary. 
"(b) AGREEMENT ON USE.—Before any salvage vessel or salvage 
gear is transferred by the Secretary to a private party, the private 
party must agree in writing with the Secretary that the vessel 
or gear will be used to support organized offshore salvage facilities 
for a period of as many years as the Secretary considers appropriate. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 425 
"(c) REFERENCE TO AUTHORITY TO ADVANCE FUNDS FOR IMME-
DIATE SALVAGE OPERATIONS.—For authority for the Secretary of 
the Navy to advance to private salvage companies such funds as 
the Secretary considers necessary to provide for the immediate 
financing of salvage operations, see section 2307(g)(2) of this title. 
"§ 7363. Settlement of claims 
"The Secretary of the Navy may settle any claim by the United 
States for salvage services rendered by the Department of the 
Navy and may receive payment of any such claim. 
"§ 7364. Disposition of receipts 
"Amounts received under this chapter shall be credited to 
appropriations for maintaining naval salvage facilities. However, 
any amount received under this chapter in any fiscal year in excess 
of naval salvage costs incurred by the Navy during that fiscal 
year shall be deposited into the general fund of the Treasury.". 
SEC. 1016. VESSELS SUBJi:CT TO REPAIR UNDER PHASED MAINTE-
NANCE CONTRACTS. 
(a) IN GENERAL.—^The Secretary of the Navy shall ensure that 
any vessel that is covered by the contract referred to in subsection 
(b) remains covered by that contract, regardless of the operating 
command to which the vessel is subsequently assigned, unless 
the vessel is taken out of service for the Department of the Navy. 
(b) COVERED CONTRACT.—^The contract referred to in subsection 
(a) is the contract entered into before the date of the enactment 
of this Act for the phased maintenance of AE class ships. 
SEC. 1017. CLARIFICATION 
OF 
REQUIREMENTS 
RELATING TO 
REPAIRS OF VB:SSELS. 
Section 7310(a) of title 10, United States Code, is amended 
by inserting "or Guam" after "the United States" the second place 
it appears. 
SEC. 1018. SENSE OF CONGRESS CONCERNING NAMING OF AMPfflB-
lOUS SHIPS. 
It is the sense of Congress that the Secretary of the Navy— 
(1) should name the vessel to be designated LHD-7 as 
the U.S.S. Iwo Jima; and 
(2) should name the vessel to be designated LPD-17, and 
each subsequent ship of the LPD-17 class, after a Marine 
Corps battle or a member of the Marine Corps. 
SEC. 1019. SENSE OF CONGRESS CONCERNING NAMING OF NAVAL 
Joseph Vittori. 
VESSEL. 
It is the sense of Congress that the Secretary of the Navy 
should name an appropriate ship of the United States Navy the 
U.S.S. Joseph Vittori, in honor of Marine Corporal Joseph Vittori 
(1929-1951) of Beverly, Massachusetts, who was posthumously 
awarded the Medal of Honor for actions against the enemy in 
Korea on September 15-16, 1951. 
SEC. 1020. TRANSFER OF RIVERINE PATROL CRAFT. 
(a) AUTHORITY TO TRANSFER VESSEL.—Notwithstanding sub-
sections (a) and (d) of section 7306 of title 10, United States Code, 
but subject to subsections (b) and (c) of that section, the Secretary 
of the Navy may transfer a vessel described in subsection (b) 
29-194 O - 96 - 15 : QL 3 Part 1 
110 STAT. 426 
PUBLIC LAW 104-106—FEB. 10, 1996 
to Tidewater Community College, Portsmouth, Virginia, for sci-
entific and educational purposes. 
(b) VESSEL.—The authority under subsection (a) applies in the 
case of a riverine patrol craft of the U.S.S. Swift class. 
(c) LIMITATION.—^The transfer authorized by subsection (a) may 
be made only if the Secretary determines that the vessel to be 
transferred is of no further use to the United States for national 
security purposes. 
(d) TERMS AND CONDITIONS.—The Secretary may require such 
terms and conditions in connection with the transfer authorized 
by this section as the Secretary considers appropriate. 
Subtitle C—Counter-Drug Activities 
SEC. 1021. REVISION AND CLARIFICATION OF AUTHORITY FOR FED-
ERAL SUPPORT OF DRUG INTERDICTION AND COUNTER-
DRUG ACTIVITIES OF THE NATIONAL GUARD. 
(a) FUNDING ASSISTANCE AUTHORIZED.—Subsection (a) of sec-
tion 112 of title 32, United States Code, is amended to read as 
follows: 
"(a) FUNDING ASSISTANCE.—The Secretary of Defense may pro-
vide funds to the Governor of a State who submits to the Secretary 
a State drug interdiction and counter-drug activities plan satisfying 
the requirements of subsection (c). Such funds shall be used for— 
"(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 activities; 
"(2) the operation and maintenance of the equipment and 
facilities of the National Guard of that State used for the 
purpose of drug interdiction and counter-drug activities; and 
"(3) the procurement of services and leasing of equipment 
for the National Guard of that State used for the purpose 
of drug interdiction and counter-drug activities.". 
(b) REORGANIZATION OF SECTION.—Such section is further 
amended— 
(1) by redesignating subsection (f) as subsection (h); 
(2) by redesignating subsection (d) as subsection (g) and 
transferring that subsection to appear before subsection (h), 
as redesignated by paragraph (1); and 
(3) by redesignating subsections (b) and (c) as subsections 
(c) and (d), respectively. 
(c) STATE DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES 
PLAN.—Subsection (c) of such section, as redesignated by subsection 
(b)(3), is amended— 
(1) in the matter preceding paragraph (1), by striking out 
"A plan referred to in subsection (a)" and inserting in lieu 
thereof "A State drug interdiction and counter-drug activities 
plan"; 
(2) by striking out "and" at the end of paragraph (2); 
and 
(3) in paragraph (3)— 
(A) by striking out "annual training" and inserting 
in lieu thereof "training"; 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 427 
(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 new paragraphs: 
Certification. 
"(4) include a certification by the Attorney General 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 activities 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 designated by the Governor 
has determined that any activities 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 sec-
tion, as redesignated by subsection (b)(3), is amended— 
(1) in paragraph (1)— 
(A) by striking out "subsection (b)" and inserting in 
lieu thereof "subsection (c)"; and 
(B) 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)"; and 
(2) in paragraph (3)— 
(A) in subparagraph (A), by striking out "subsection 
(b)" 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 previous fiscal 
year, funds were provided to the State in accordance with 
subsection (a) or personnel of the National Guard of the State 
were ordered to perform full-time National Guard duty in 
accordance with subsection (b).". 
(e) 
USE OF PERSONNEL PERFORMING FULL-TIME 
NATIONAL 
GUARD DUTY.—Such section is further amended by inserting after 
subsection (a) the following new subsection (b): 
"(b) USE OF PERSONNEL PERFORMING FULL-TIME NATIONAL Regulations. 
GUARD DUTY.—Under regulations prescribed by the Secretary of 
Defense, personnel of the National Guard of a State may, in accord-
ance with the State drug interdiction and counter-drug activities 
plan referred to in subsection (c), 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.". 
(f) 
END 
STRENGTH 
LIMITATION.—Such section is 
further 
amended by inserting after subsection (e) the following new sub-
section (f): 
"(f) END STRENGTH LIMITATION.—(1) Except as provided in para-
graph (2), at the end of a fiscal year there 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 interdiction or counter-drug activi-
ties pursuant to an order to duty for a period of more than 
; 
180 days; or 
"(B) on duty under State authority to perform drug interdic-
tion or counter-drug activities pursuant to an order to duty 
for a period of more than 180 days with State pay and allow-
110 STAT. 428 
PUBLIC LAW 104-106—FEB. 10, 1996 
ances 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.", 
(g) DEFINITIONS.—Subsection (h) of such section, as redesig-
nated by subsection (b)(1), is amended by striking out paragraph 
(1) and inserting in lieu thereof the following: 
"(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 enforcement activities authorized by the law 
of the State and requested by the Governor of the State.", 
(h) TECHNICAL AMENDMENTS.—Subsection (e) of such section 
is amended— 
(1) in paragraph (1), by striking out "sections 517 and 
524" and inserting in Ueu thereof "sections 12011 and 12012"; 
and 
(2) in paragraph (2), by striking out "the Committees on 
Armed Services of the Senate and House of Representatives" 
and inserting in lieu thereof "the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives". 
Subtitle D—Civilian Personnel 
SEC. 1031. MANAGEMENT OF DEPARTMENT OF DEFENSE CIVILIAN 
PERSONNEL. 
Section 129 of title 10, United States Code, is amended— 
(1) in subsection (a)— 
(A) by striking out "man-year constraint or limitation" 
and inserting in lieu thereof "constraint or limitation in 
terms of man years, end strength, full-time equivalent posi-
tions, or maximum number of employees"; and 
(B) by adding at the end the following new sentence: 
"The Secretary of Defense and the Secretaries of the mili-
tary departments may not be required to make a reduction 
in the number of full-time equivalent positions in the 
Department of Defense unless such reduction is necessary 
due to a reduction in funds available to the Department 
or is required under a law that is enacted after the date 
of the enactment of the National Defense Authorization 
Act for Fiscal Year 1996 and that refers specifically to 
this subsection."; 
(2) in subsection (b)(2), by striking out "any end-strength" 
and inserting in lieu thereof "any constraint or limitation in 
terms of man years, end strength, full-time equivalent positions, 
or maximum number of employees"; and 
(3) by adding at the end the following new subsection: 
"(d) With respect to each budget activity within an appropria-
tion for a fiscal year for operations and maintenance, the Secretary 
of Defense shall ensure that there are employed during that fiscal 
year employees in the number and with the combination of skills 
and qualifications that are necessary to carry out the functions 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 429 
within that budget activity for which funds are provided for that 
fiscal year.". 
SEC. 1032. CONVERSION OF MILITARY POSITIONS TO CIVILIAN POSI- 
10 USC 129a 
TIONS. 
note. 
(a) CONVERSION REQUIREMENT.—(1) By September 30, 1997, Effective date, 
the Secretary of Defense shall convert at least 10,000 military 
positions to civilian positions. 
(2) At least 3,000 of the military positions converted to satisfy 
the requirement of paragraph (1) shall be converted to civilian 
positions not later than September 30, 1996. 
(3) In this subsection: 
(A) The term "military position" means a position that, 
as of the date of the enactment of this Act, is authorized 
to be filled by a member of the Armed Forces on active duty. 
(B) The term "civilian position" means a position that is 
required to be filled by a civilian employee of the Department 
of Defense. 
(b) IMPLEMENTATION PLAN.—Not later than March 31, 1996, 
the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a plan for the implementation 
of subsection (a). 
SEC. 1033. ELIMINATION OF 120-DAY LIMITATION ON DETAILS OF CER-
TAIN EMPLOYEES. 
(a) ELIMINATION OF LIMITATION.—Subsection (b) of section 3341 
of title 5, United States Code, is amended— 
(1) by inserting "(1)" after "(b)"; and 
(2) by adding at the end the following: 
"(2) The 120-day limitation in paragraph (1) for details and 
renewals of details does not apply to the Department of Defense 
in the case of a detail— 
"(A) made in connection with the closure or realignment 
of a military installation pursuant to a base closure law or 
an organizational restructuring of the Department as part of 
a reduction in the size of the armed forces or the civilian 
workforce of the Department; and 
"(B) in which the position to which the employee is detailed 
is eliminated on or before the date of the closure, realignment, 
or restructuring. 
"(c) For purposes of this section— 
"(1) the term 'base closure law' means— 
"(A) section 2687 of title 10; 
"(B) title II of the Defense Authorization Amendments 
and Base Closure and Realignment Act (10 U.S.C. 2687 
note); and 
"(C) the Defense Base Closure and Realignment Act 
of 1990 (10 U.S.C. 2687 note); and 
"(2) the term 'military installation'— 
"(A) in the case of an installation covered by section 
2687 of title 10, has the meaning given such term in 
subsection (e)(1) of such section; 
"(B) in the case of an installation covered by the Act 
referred to in subparagraph (B) of paragraph (1), has the 
meaning given such term in section 209(6) of such Act; 
and 
110 STAT. 430 
PUBLIC LAW 104-106—FEB. 10, 1996 
5 u s e 3341 note. 
Regulations. 
Termination 
date. 
"(C) in the case of an installation covered by the Act 
referred to in subparagraph (C) of that paragraph, has 
the meaning given such term in section 2910(4) of such 
Act.". 
(b) APPLICABILITY.—The amendments made by subsection (a) 
apply to details made before the date of the enactment of this 
Act but still in effect on that date and details made on or after 
that date. 
SEC. 1034. AUTHORITY FOR CIVILIAN EMPLOYEES OF DEPARTMENT 
OF DEFENSE TO PARTICIPATE VOLUNTARILY IN REDUC-
TIONS IN FORCE. 
Section 3502 of title 5, United States Code, is amended by 
adding at the end the following: 
"(f)( 1) The Secretary of Defense or the Secretary of a military 
department may— 
"(A) release in a reduction in force an employee who volun-
teers for the release even though the employee is not otherwise 
subject to release in the reduction in force under the criteria 
applicable under the other provisions of this section; and 
"(B) for each employee voluntarily released in the reduction 
in force under subparagraph (A), retain an employee in a simi-
lar position who would otherwise be released in the reduction 
in force under such criteria. 
"(2) A voluntary release of an employee in a reduction in 
force pursuant to paragraph (1) shall be treated as an involuntary 
release in the reduction in force. 
"(3) An employee with critical knowledge and skills (as defined 
by the Secretary concerned) may not participate in a voluntary 
release under paragraph (1) if the Secretary concerned determines 
that such participation would impair the performance of the mission 
of the Department of Defense or the military department concerned. 
"(4) The regulations prescribed under this section shall incor-
porate the authority provided in this subsection. 
"(5) The authority under paragraph (1) may not be exercised 
after September 30, 1996.". 
SEC. 1035. AUTHORITY TO PAY SEVERANCE PAYMENTS IN LUMP SUMS. 
Section 5595 of title 5, United States Code, is amended by 
adding at the end the following: 
"(i)(l) In the case of an employee of the Department of Defense 
who is entitled to severance pay under this section, the Secretary 
of Defense or the Secretary of the military department concerned 
may, upon application by the employee, pay the total amount of 
the severance pay to the employee in one lump sum. 
"(2)(A) If an employee paid severance pay in a lump sum 
under this subsection is reemployed by the Government of the 
United States or the government of the District of Columbia at 
such time that, had the employee been paid severance pay in 
regular pay periods under subsection (b), the payments of such 
pay would have been discontinued under subsection (d) upon such 
reemployment, the employee shall repay to the Department of 
Defense (for the military department that formerly employed the 
employee, if applicable) an amount equal to the amount of severance 
pay to which the employee was entitled under this section that 
would not have been paid to the employee under subsection (d) 
by reason of such reemployment. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 431 
"(B) The period of service represented by an amount of sever-
ance pay repaid by an employee under subparagraph (A) shall 
be considered service for which severance pay has not been received 
by the employee under this section. 
"(C) Amounts repaid to an agency under this paragraph shall 
be credited to the appropriation available for the pay of employees 
of the agency for the fiscal year in which received. Amounts so 
credited shall be merged with, and shall be available for the 
same purposes and the same period as, the other funds in that 
appropriation. 
"(3) If an employee fails to repay to an agency an amount 
required to be repaid under paragraph (2)(A), that amount is 
recoverable from the employee as a debt due the United States. 
"(4) This subsection applies with respect to severance pay pay- Applicability, 
able under this section for separations taking effect on or after 
the date of the enactment of the National Defense Authorization 
Act for Fiscal Year 1996 and before October 1, 1999.". 
SEC. 
1
0
3
6
. 
CONTINUED 
HEALTH 
INSURANCE 
COVERAGE. 
Section 8905a(d)(4) of title 5, United States Code, is amended— 
(1) in subparagraph (A), by inserting ", or a voluntary 
separation from a surplus position," after "an involuntary sepa-
ration from a position"; and 
(2) by adding at the end the following new subparagraph: 
"(C) For the purpose of this paragraph, 'surplus position' means 
a position which is identified in pre-reduction-in-force planning 
as no longer required, and which is expected to be eliminated 
under formal reduction-in-force procedures.". 
SEC. 1037. REVISION OF AUTHORITY FOR APPOINTMENTS OF INVOL-
UNTARILY 
SEPARATED 
MILITARY 
RESERVE 
TECHNI-
CIANS. 
(a) REVISION OF AUTHORITY.—Section 3329 of title 5, United 
States Code, as added by section 544 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 
Stat. 2415), is amended— 
(1) in subsection (b), by striking out "be offered" and insert-
ing in lieu thereof "be provided placement consideration in 
a position described in subsection (c) through a priority place-
ment program of the Department of Defense"; and 
(2) by striking out subsection (c) and inserting in lieu 
thereof the following new subsection (c): 
"(c)(1) The position for which placement consideration shall 
be provided to a former military technician under subsection (b) 
shall be a position— 
"(A) in either the competitive service or the excepted serv-
ice; 
"(B) within the Department of Defense; and 
"(C) in which the person is qualified to serve, taking into 
consideration whether the employee in that position is required 
to be a member of a reserve component of the armed forces 
as a condition of employment. 
"(2) To the maximum extent practicable, the position shall 
also be in a pay grade or other pay classification sufficient to 
ensure that the rate of basic pay of the former military technician, 
upon appointment to the position, is not less than the rate of 
basic pay last received by the former military technician for techni-
cian service before separation.". 
110 STAT. 432 
PUBLIC LAW 104-106—FEB. 10, 1996 
(b) TECHNICAL AND CLERICAL AMENDMENTS.—(1) The section 
3329 of title 5, United States Code, that was added by section 
4431 of the National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484; 106 Stat. 2719) is redesignated as sec-
tion 3330 of such title. 
(2) The table of sections at the beginning of chapter 33 of 
such title is amended by striking out the item relating to section 
3329, as added by section 4431(b) of such Act (106 Stat. 2720), 
and inserting in lieu thereof the following new item: 
"3330. Government-wide list of vacant positions.". 
SEC. 1038. WEARING OF UNIFORM BY NATIONAL GUARD TECHNICL\NS. 
(a) REQUIREMENT.—Section 709(b) of title 32, United States 
Code, is amended to read as follows: 
"(b) Except as prescribed by the Secretary concerned, a techni-
cian employed under subsection (a) shall, while so employed— 
"(1) be a member of the National Guard; 
"(2) hold the military grade specified by the Secretary 
concerned for that position; and 
"(3) wear the uniform appropriate for the member's grade 
and component of the armed forces while performing duties 
as a technician.". 
(b) UNIFORM ALLOWANCES FOR OFFICERS.—Section 417 of title 
37, United States Code, is amended by adding at the end the 
following: 
"(d)(1) For purposes of sections 415 and 416 of this title, a 
period for which an officer of an armed force, while employed 
as a National Guard technician, is required to wear a uniform 
under section 709(b) of title 32 shall be treated as a period of 
active duty (other than for training). 
"(2) A uniform allowance may not be paid, and uniforms may 
not be furnished, to an officer under section 1593 of title 10 or 
section 5901 of title 5 for a period of employment referred to 
in paragraph (1) for which an officer is paid a uniform allowance 
under section 415 or 416 of this title.". 
(c) CLOTHING OR ALLOWANCES FOR ENLISTED MEMBERS.—Sec-
tion 418 of title 37, United States Code, is amended— 
(1) by inserting "(a)" before "The President"; and 
(2) by adding at the end the following: 
Regulations. 
"(b) In determining the quantity and kind of clothing or allow-
President. 
ances to be furnished pursuant to regulations prescribed under 
this section to persons employed as National Guard technicians 
under section 709 of title 32, the President shall take into account 
the requirement under subsection (b) of such section for such per-
sons to wear a uniform. 
"(c) A uniform allowance may not be paid, and uniforms may 
not be furnished, under section 1593 of title 10 or section 5901 
of title 5 to a person referred to in subsection (b) for a period 
of employment referred to in that subsection for which a uniform 
allowance is paid under section 415 or 416 of this title.". 
SEC. 1039. MILITARY LEAVE FOR MILITARY RESERVE TECHNICIANS 
FOR CERTAIN DUTY OVERSEAS. 
Section 6323 of title 5, United States Code, is amended by 
adding at the end the following new subsection: 
"(d)(1) A military reserve technician described in section 
8401(30) is entitled at such person's request to leave without loss 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 433 
of, or reduction in, pay, leave to which such person is otherwise 
entitled, credit for time or service, or performance or efficiency 
rating for each day, not to exceed 44 workdays in a calendar 
year, in which such person is on active duty without pay, as author-
ized pursuant to section 12315 of title 10, under section 12301(b) 
or 12301(d) of title 10 (other than active duty during a war or 
national emergency declared by the President or Congress) for 
participation in noncombat operations outside the United States, 
its territories and possessions. 
"(2) An employee who requests annual leave or compensatory 
time to which the employee is otherwise entitled, for a period 
during which the employee would have been entitled upon request 
to leave under this subsection, may be granted such annual leave 
or compensatory time without regard to this section or section 
5519.". 
SEC. 1040. PERSONNEL 
ACTIONS 
INVOLVING 
EMPLOYEES 
OF 
NONAPPROPRIATED FUND INSTRUMENTALITIES. 
(a) CLARIFICATION OF DEFINITION OF NONAPPROPRIATED FUND 
INSTRUMENTALITY EMPLOYEE.—Subsection (a)(1) of section 1587 of 
title 10, United States Code, is amended by adding at the end 
the following new sentence: "Such term includes a civilian employee 
of a support organization within the Department of Defense or 
a military department, such as the Defense Finance and Accounting 
Service, who is paid from nonappropriated funds on account of 
the nature of the employee's duties.". 
(b) DIRECT REPORTING OF VIOLATIONS.—Subsection (e) of such 
section is amended in the second sentence by inserting before the 
period the following: "and to permit the reporting of alleged viola-
tions of subsection (b) directly to the Inspector General of the 
Department of Defense". 
(c) TECHNICAL AMENDMENT.—Subsection (a)(1) of such section 
is further amended by striking out "Navy Resale and Services 
Support Office" and inserting in lieu thereof "Navy Exchange Serv-
ice Command". 
(d) CLERICAL AMENDMENTS.—(1) The heading of such section 
is amended to read as follows: 
"§ 1587. Employees of nonappropriated fund instrumental-
ities: reprisals". 
(2) The item relating to such section in the table of sections 
at the beginning of chapter 81 of such title is amended to read 
as follows: 
"1587. Employees of nonappropriated fund instrumentalities: reprisals.". 
SEC. 
1
0
4
1
. COVERAGE OF NONAPPROPRIATED FUND EMPLOYEES 
UNDER AUTHORITY FOR FLEXIBLE AND COMPRESSED 
WORK 
SCHEDULES. 
Paragraph (2) of section 6121 of title 5, United States Code, 
is amended to read as follows: 
"(2) 'employee' has the meaning given the term in sub-
section (a) of section 2105 of this title, except that such term 
also includes an employee described in subsection (c) of that 
section;". 
110 STAT. 434 
PUBLIC LAW 104-106—FEB. 10, 1996 
10 u s e 1587 
SEC. 1042. LIMITATION ON PROVISION OF OVERSEAS LIVING QUAR-
note. 
TERS 
ALLOWANCES 
FOR NONAPPROPRIATED 
FUND 
INSTRUMENTALITY EMPLOYEES. 
(a) 
CONFORMING ALLOWANCE TO ALLOWANCES FOR OTHER 
CIVILIAN EMPLOYEES.—Subject to subsection (b), an overseas living 
quarters allowance paid from nonappropriated funds and provided 
to a nonappropriated fund instrumentality employee after the date 
of the enactment of this Act may not exceed the amount of a 
quarters allowance provided under subchapter III of chapter 59 
of title 5 to a similarly situated civilian employee of the Department 
of Defense paid from appropriated funds. 
(b) APPLICATION TO CERTAIN CURRENT EMPLOYEES.—In the case 
of a nonappropriated fund instrumentality employee who, as of 
the date of the enactment of this Act, receives an overseas living 
quarters allowance under any other authority, subsection (a) shall 
apply to such employee only after the earlier o
f
— 
(1) September 30, 1997; or 
(2) the date on which the employee otherwise ceases to 
be eligible for such an allowance under such other authority. 
(c) 
NONAPPROPRIATED 
FUND 
INSTRUMENTALITY 
EMPLOYEE 
DEFINED.—For purposes of this section, the term "nonappropriated 
fund instrumentality employee" has the meaning given such term 
in section 1587(a)(1) of title 10, United States Code. 
SEC. 1043. E L E C T I O N S RELATING TO RETIREMENT COVERAGE. 
(a) IN GENERAL.— 
(1) CIVIL SERVICE RETIREMENT SYSTEM.—Section 8347(q) 
of title 5, United States Code, is amended— 
(A) in paragraph (1)— 
(i) by striking "of the Department of Defense or 
the Coast Guard" in the matter before subparagraph 
(A); and 
(ii) by striking "3 days" and inserting "1 year"; 
and 
(B) in paragraph (2)(C)— 
(i) by striking "3 days" and inserting "1 year"; 
and 
(ii) by striking "in the Department of Defense or 
the Coast Guard, respectively,". 
(2) 
FEDERAL EMPLOYEES' RETIREMENT SYSTEM.—Section 
846l(n) of title 5, United States Code, is amended— 
(A) in paragraph (1)— 
(i) by striking "of the Department of Defense or 
the Coast Guard" in the matter before subparagraph 
(A); and 
(ii) by striking "3 days" and inserting "1 year"; 
and 
(B) in paragraph (2)(C)— 
(i) by striking "3 days" and inserting "1 year"; 
and 
(ii) by striking "in the Department of Defense or 
the Coast Guard, respectively,". 
Notification. 
(b) REGULATIONS.—Not later than 6 months after the date 
5 use 8347 note, of the enactment of this Act, the Office of Personnel Management 
(and each of the other administrative authorities, within the mean-
ing of subsection (c)(2)(C)(iii)) shall prescribe any regulations (or 
make any modifications in existing regulations) necessary to carry 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 435 
out this section and the amendments made by this section, including 
regulations to provide for the notification of individuals who may 
be affected by the enactment of this section. All regulations (and Effective date. 
modifications to regulations) under the preceding sentence shall 
take effect on the same date. 
(c) APPLICABILITY; RELATED PROVISIONS.— 
5 use 8347 note. 
(1) PROSPECTIVE RULES.—Except as otherwise provided in 
this subsection, the amendments made by this section shall 
apply with respect to moves occurring on or after the effective 
date of the regulations under subsection (b). Moves occurring 
on or after the date of the enactment of this Act and before 
the effective date of such regulations shall be subject to 
applicable provisions of title 5, United States Code, disregarding 
the amendments made by this section, except that any individ-
ual making an election pursuant to this sentence shall be 
ineligible to make an election otherwise allowable under para-
graph (2). 
(2) RETROACTIVE RULES.— 
(A) IN GENERAL.—^The regulations under subsection (b) 
shall include provisions for the application of sections 
8347(q) and 846l(n) of title 5, United States Code, as 
amended by this section, with respect to any individual 
who, at any time after December 31, 1965, and before 
the effective date of such regulations, moved between posi-
tions in circumstances that would have qualified such 
individual to make an election under the provisions of 
such section 8347(q) or 846l(n), as so amended, if such 
provisions had then been in effect. 
(B) 
DEADLINE; 
RELATED 
PROVISIONS.—^An 
election 
pursuant to this paragraph— 
(i) shall be made within 1 year after the effective 
date of the regulations under subsection (b), and 
(ii) shall have the same force and effect as if it 
had been timely made at the time of the move, 
except that no such election may be made by any 
individual— 
(I) who has previously made, or had an opportunity 
to make, an election under section 8347(q) or 846l(n) 
of title 5, United States Code (as in effect before being 
amended by this section); however, this subclause shall 
not be considered to render an individual ineligible, 
based on an opportunity arising out of a move occurring 
during the period described in the second sentence 
of paragraph (1), if no election has in fact been made 
by such individual based on such move; 
(II) who has not, since the move on which eligibility 
for the election is based, remained continuously subject 
(disregarding any break in service of less than 3 days) 
to CSRS or FERS or both seriatim (if the move was 
from a NAFI position) or any retirement system (or 
2 or more such systems seriatim) established for 
employees described in section 2105(c) of such title 
(if the move was to a NAFI position); or 
(III) if such election would be based on a move 
to the Civil Service Retirement System from a retire-
ment system established for employees described in 
section 2105(c) of such title. 
110 STAT. 436 
PUBLIC LAW 104-106—FEB. 10, 1996 
(C) TRANSFERS OF CONTRIBUTIONS.— 
(i) IN GENERAL.—If an individual makes an election 
under this paragraph to be transferred back to a retire-
ment system in which such individual previously 
participated (in this section referred to as the "previous 
system"), 
all 
individual 
contributions 
(including 
interest) and Government contributions to the retire-
ment system in which such individual is then currently 
participating (in this section referred to as the "current 
system"), excluding those made to the Thrift Savings 
Plan or any other defined contribution plan, which 
are attributable to periods of service performed since 
the move on which the election is based, shall be 
paid to the fund, account, or other repository for con-
tributions made under the previous system. For pur-
poses of this section, the term "current system" shall 
be considered also to include any retirement system 
(besides the one in which the individual is participating 
at the time of making the election) in which such 
individual previously participated since the move on 
which the election is based. 
(ii) CONDITION SUBSEQUENT RELATING TO REPAY-
MENT OF LUMP-SUM CREDIT.—In the case of an individ-
ual who has received such individual's lump-sum credit 
(within the meaning of section 8401(19) of title 5, 
United States Code, or a similar payment) from such 
individual's previous system, the payment described 
in clause (i) shall not be made (and the election to 
which it relates shall be ineffective) unless such lump-
sum credit is redeposited or otherwise paid at such 
time and in such manner as shall be required under 
applicable regulations. Regulations to carry out this 
clause shall include provisions for the computation of 
interest (consistent with section 8334(e) (2) and (3) 
of title 5, United States Code), if no provisions for 
such computation otherwise exist. 
(iii) 
CONDITION SUBSEQUENT RELATING TO DEFI-
CIENCY IN PAYMENTS RELATIVE TO AMOUNTS NEEDED 
TO ENSURE THAT BENEFITS ARE FULLY FUNDED.— 
(I) IN GENERAL.—Except 
as 
provided 
in 
subclause (II), the payment described in clause 
(i) shall not be made (and the election to which 
it relates shall be ineffective) if the actuarial 
present value of the future benefits that would 
be payable under the previous system with respect 
to service performed by such individual after the 
move on which the election under this paragraph 
is based and before the effective date of the elec-
tion, exceeds the total amounts required to be 
transferred to the previous system under the 
preceding provisions of this subparagraph with 
respect to such service, as determined by the 
authority administering such previous system (in 
this section referred to as the "administrative 
authority"). 
(II) PAYMENT OF DEFICIENCY.—^A determina-
tion of a deficiency under this clause shall not 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 437 
render an election ineffective if the individual pays 
or arranges to pay, at a time and in a manner 
satisfactory to such administrative authority, the 
full amount of the deficiency described in subclause 
(I). 
(D) ALTERNATIVE ELECTION FOR AN INDIVIDUAL THEN 
PARTICIPATING IN FERS.— 
(i) 
APPLICABILITY.—This subparagraph 
applies 
with respect to any individual who— 
(I) is then currently participating in FERS; 
and 
(II) would then otherwise be eligible to make 
an election under subparagraphs (A) through (C) 
of this paragraph, determined disregarding the 
matter in subclause (I) of subparagraph (B) before 
the first semicolon therein. 
(ii) ELECTION.—^An individual described in clause 
(i) may, instead of making an election for which such 
individual is otherwise eligible under this paragraph, 
elect to have all prior qualifying NAFI service of such 
individual treated as creditable service for purposes 
of any annuity under FERS payable out of the Civil 
Service Retirement and Disability Fund. 
(iii) 
QUALIFYING NAFI SERVICE.—For purposes of 
this subparagraph, the term "qualifying NAFI service" 
means any service which, but for this subparagraph, 
would be creditable for purposes of any retirement 
system established for employees described in section 
2105(c) of title 5, United States Code. 
(iv) SERVICE CEASES TO BE CREDITABLE FOR NAFI 
RETIREMENT SYSTEM PURPOSES.—^Any qualifying NAFI 
service that becomes creditable for FERS purposes by 
virtue of an election made under this subparagraph 
shall not be creditable for purposes of any retirement 
system referred to in clause (iii). 
(v) CONDITIONS.—An election under this subpara-
graph shall be subject to requirements, similar to those 
set forth in subparagraph (C), to ensure that— 
(I) appropriate transfers of individual and 
Government contributions are made to the Civil 
Service Retirement and Disability Fund; and 
(II) the actuarial present value of future bene-
fits under FERS attributable to service made cred-
itable by such election is fully funded. 
(E) ALTERNATIVE ELECTION FOR AN INDIVIDUAL THEN 
PARTICIPATING IN A NAFI RETIREMENT SYSTEM.— 
(i) 
APPLICABILITY.—^This subparagraph 
applies 
with respect to any individual who— 
(I) is then currently participating in any retire-
ment system established for employees described 
in section 2105(c) of title 5, United States Code 
(in this subparagraph referred to as a "NAFI 
retirement system"); and 
(II) would then otherwise be eligible to make 
an election under subparagraphs (A) through (C) 
of this paragraph (determined disregarding the 
matter in subclause (I) of subparagraph (B) before 
110 STAT. 438 
PUBLIC LAW 104-106—FEB. 10, 1996 
the first semicolon therein) based on a move from 
FERS. 
(ii) ELECTION.—^An individual described in clause 
(i) may, instead of making an election for which such 
individual is otherwise eligible under this paragraph, 
elect to have all prior qualifying FERS service of such 
individual treated as creditable service for purposes 
of determining eligibility for benefits under a NAFI 
retirement system, but not for purposes of computing 
the amount of any such benefits except as provided 
in clause (v)(II). 
(iii) QUALIFYING FERS SERVICE.—For purposes of 
this subparagraph, the term "qualifying FERS service" 
means any service which, but for this subparagraph, 
would be creditable for purposes of the Federal Employ-
ees' Retirement System. 
(iv) SERVICE CEASES TO BE CREDITABLE FOR PUR-
POSES OF FERS.—^Any qualifying FERS service that 
becomes creditable for NAFI purposes by virtue of an 
election made under this subparagraph shall not be 
creditable for purposes of the Federal Employees' 
Retirement System. 
(v) FUNDING REQUIREMENTS.— 
(I) IN GENERAL.—Except as provided in 
subclause (II), nothing in this section or in any 
other provision of law or any other authority shall 
be considered to require any payment or transfer 
of monies in order for an election under this 
subparagraph to be effective. 
(II) CONTRIBUTION REQUIRED ONLY IF INDIVID-
UAL ELECTS TO HAVE SERVICE MADE CREDITABLE 
FOR COMPUTATION PURPOSES AS WELL.—Under 
regulations prescribed by the appropriate adminis-
trative authority, an individual making an election 
under this subparagraph may further elect to have 
the qualifying FERS service made creditable for 
computation purposes under a NAFI retirement 
system, but only if the individual pays or arranges 
to pay, at a time and in a manner satisfactory 
to such administrative authority, the amount nec-
essary to fully fund the actuarial present value 
of future benefits under the NAFI retirement sys-
tem attributable to the qualifying FERS service. 
(3) INFORMATION.—The regulations under subsection (b) 
shall include provisions under which any individual— 
(A) shall, upon request, be provided information or 
assistance in determining whether such individual is 
eligible to make an election under paragraph (2) and, if 
so, the exact amount of any payment which would be 
required of such individual in connection with any such 
election; and 
(B) may seek any other information or assistance relat-
ing to any such election. 
(d) CREDITABILITY OF NAFI SERVICE FOR R I F PURPOSES.— 
(1) IN GENERAL.—Clause (ii) of section 3502(a)(C) of title 
5, United States Code, is amended by striking "January 1, 
1987" and inserting "January 1, 1966". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 439 
(2) EFFECTIVE DATE.—Notwithstanding any provision of 5 USC 3502 note, 
subsection (c), the amendment made by paragraph (1) shall— 
(A) take effect on the date of the enactment of this 
Act; and 
(B) apply with respect to any reduction in force carried 
out on or after such date. 
SEC. 1044. EXTENSION OF TEMPORARY AUTHORITY TO PAY CIVILIAN 
EMPLOYEES WITH RESPECT TO THE EVACUATION FROM 
GUANTANAMO, CUBA. 
(a) EXTENSION OF AUTHORITY.—The Secretary of Defense may, 
until the end of January 31, 1996, and without regard to the 
time limitations specified in subsection (a) of section 5523 of title 
5, United States Code, make payments under the provisions of 
such section from funds available for the pay of civilian personnel 
in the case of employees, or an employee's dependents or immediate 
family, evacuated from Guantanamo Bay, Cuba, pursuant to the 
August 26, 1994 order of the Secretary. This section shall take 
Effective date, 
effect as of October 1, 1995, and shall apply with respect to pay- Applicability, 
ments made for periods occurring on or after that date. 
(b) MONTHLY REPORT.—On the first day of each month begin-
ning after the date of the enactment of this Act and ending before 
March 1996, the Secretary of the Navy shall transmit to the 
Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives a report 
regarding the payment of employees pursuant to subsection (a). 
Each such report shall include, for the month preceding the month 
in which the report is transmitted, a statement of the following: 
(1) The number of the employees paid pursuant to such 
section. 
(2) The positions of employment of the employees. 
(3) The number and location of the employees' dependents 
and immediate families. 
(4) The actions taken by the Secretary to eliminate the 
conditions which necessitated the payments. 
Subtitle E—Miscellaneous Reporting 
Requirements 
SEC. 1051. REPORT ON FISCAL YEAR 1997 BUDGET SUBMISSION 
REGARDING GUARD AND RESERVE COMPONENTS. 
(a) REPORT.—The Secretary of Defense shall submit to the 
congressional defense committees, at the same time that the Presi-
dent submits the budget for fiscal year 1997 under section 1105(a) 
of title 31, United States Code, a report on amounts requested 
in that budget for the Guard and Reserve components. 
(b) CONTENT.—^The report shall include the following: 
(1) A description of the anticipated effect that the amounts 
requested (if approved by Congress) will have to enhance the 
capabilities of each of the Guard and Reserve components. 
(2) A listing, with respect to each such component, of each 
of the following: 
(A) The amount requested for each major weapon sys-
tem for which funds are requested in the budget for that 
component. 
110 STAT. 440 
PUBLIC LAW 104-106—FEB. 10, 1996 
(B) The amount requested for each item of equipment 
(other than a major weapon system) for which funds are 
requested in the budget for that component. 
(C) The amount requested for each miUtary construc-
tion project, together with the location of each such project, 
for which funds are requested in the budget for that 
component. 
(c) INCLUSION OF INFORMATION IN NEXT FYDP.—The Secretary 
of Defense shall specifically display in the next future-years defense 
program (or program revision) submitted to Congress after the 
date of the enactment of this Act the amounts programmed for 
procurement of equipment and for military construction for each 
of the Guard and Reserve components. 
(d) DEFINITION.—For purposes of this section, the term "Guard 
and Reserve components" means the following: 
(1) The Army Reserve. 
(2) The Army National Guard of the United States. 
(3) The Naval Reserve. 
(4) The Marine Corps Reserve. 
(5) The Air Force Reserve. 
(6) The Air National Guard of the United States. 
SEC. 1052. REPORT ON DESIRABILITY AND FEASIBILITY OF PROVID-
ING AUTHORITY FOR USE OF FUNDS DERIVED FROM 
RECOVERED LOSSES RESULTING FROM CONTRACTOR 
FRAUD. 
(a) REPORT.—Not later than April 1, 1996, the Secretary of 
Defense shall submit to Congress a report on the desirability and 
feasibility of authorizing by law the retention and use by the 
Department of Defense of a specified portion (not to exceed three 
percent) of amounts recovered by the Government during any fiscal 
year from losses and expenses incurred by the Department of De-
fense as a result of contractor fraud at military installations. 
(b) MATTERS TO BE INCLUDED.—The report shall include the 
views of the Secretary of Defense regarding— 
(1) the degree to which such authority would create 
enhanced incentives for the discovery, investigation, and resolu-
tion of contractor fraud at military installations; and 
(2) the appropriate allocation for funds that would be avail-
able for expenditure pursuant to such authority. 
SEC. 1053. REPORT OF NATIONAL POLICY ON PROTECTING THE 
NATIONAL INFORMATION INFRASTRUCTURE AGAINST 
STRATEGIC ATTACKS. 
President. 
Not later than 120 days after the date of the enactment of 
this Act, the President shall submit to Congress a report setting 
forth the results of a review of the national policy on protecting 
the national information infrastructure against strategic attacks. 
The report shall include the following: 
(1) A description of the national policy and architecture 
governing the plans for establishing procedures, capabilities, 
systems, and processes necessary to perform indications, warn-
ing, and assessment functions regarding strategic attacks by 
foreign nations, groups, or individuals, or any other entity 
against the national information infrastructure. 
(2) An assessment of the future of the National Communica-
tions System (NCS), which has performed the central role in 
ensuring 
national 
security 
and 
emergency 
preparedness 
PUBLIC LAW 104-10&—FEB. 10, 1996 
110 STAT. 441 
communications for essential United States Government and 
private sector users, including a discussion o
f
— 
(A) whether there is a Federal interest in expanding 
or modernizing ihe National Communications System in 
light of the changing strategic national security environ-
ment and the revolution in information technologies; and 
(B) the best use of the National Communications Sys-
tem and the assets and experience it represents as an 
integral part of a larger national strategy to protect the 
United States against a strategic attack on the national 
information infrastructure. 
SEC. 1054. REPORT ON DEPARTMENT OF DEFENSE BOARDS AND 
COMMISSIONS. 
(a) STUDY.—The Secretary of Defense shall conduct a study 
of the boards and commissions described in subsection (c). As part 
of such study, the Secretary shall determine, with respect to each 
such board or commission that received support from the Depart-
ment of Defense during fiscal year 1995, whether that board or 
commission merits continued support from the Department. 
(b) REPORT.—Not later than April 1, 1996, the Secretary shall 
submit to the Committee on Armed Services of the Senate and 
the Committee on National Security of the House of Representatives 
a report on the results of the study. The report shall include 
the following: 
(1) A list of each board and commission described in sub-
section (c) that received support from the Department of 
Defense during fiscal year 1995. 
(2) With respect to the boards and commissions specified 
on the list under paragraph (1)— 
(A) a list of each such board or commission concerning 
which the Secretary determined under subsection (a) that 
continued support from the Department of Defense is mer-
ited; and 
(B) a list of each such board or commission concerning 
which the Secretary determined under subsection (a) that 
continued support from the Department if not merited. 
(3) For each board and commission specified on the list 
under paragraph (2)(A), a description o
f
— 
(A) the purpose of the board or commission; 
(B) the nature and cost of the support provided by 
the Department to the board or commission during fiscal 
year 1995; 
(C) the nature and duration of the support that the 
Secretary proposes to provide to the board or commission; 
(D) the anticipated cost to the Department of providing 
such support; and 
(E) a justification of the determination that the board 
or commission merits the continued support of the 
Department. 
(4) For each board and commission specified on the list 
under paragraph (2)(B), a description of— 
(A) the purpose of the board or commission; 
(B) the nature and cost of the support provided by 
the Department to the board or commission during fiscal 
year 1995; and 
110 STAT. 442 
PUBLIC LAW 104-106—FEB. 10, 1996 
(C) a justification of the determination that the board 
or commission does not merit the continued support of 
the Department. 
(c) COVERED BOARDS AND COMMISSIONS.—Subsection (a) appHes 
to any board or commission (including any board or commission 
authorized by law) that operates within or for the Department 
of Defense and that— 
(1) provides only policy-making assistance or advisory serv-
ices for the Department; or 
(2) carries out only activities that are not routine activities, 
on-going activities, or activities necessary to the routine, on-
going operations of the Department. 
(d) SUPPORT DEFINED.—For purposes of this section, the term 
"support" includes the provision of any of the following: 
(1) Funds. 
(2) Equipment, materiel, or other assets. 
(3) Services of personnel. 
SEC. 1055. DATE FOR SUBMISSION OF ANNUAL REPORT ON SPECIAL 
^ 
ACCESS PROGRAMS. 
Section 119(a) of title 10, United States Code, is amended 
by striking out "February 1" and inserting in lieu thereof 
"March 1". 
Subtitle F—Repeal of Certain Reporting 
and Other Requirements and Authorities 
SEC. 1061. REPEAL OF MISCELLANEOUS PROVISIONS OF LAW. 
(a) 
VOLUNTEERS INVESTING IN PEACE AND SECURITY PRO-
lOUSClsOle^ 
GRAM.—-(1) Chapter 89 of title 10, United States Code, is repealed. 
s«9- 
(2) The tables of chapters at the beginning of subtitle A, and 
at the beginning of part II of subtitle A, of such title are each 
amended by striking out the item relating to chapter 89. 
(b) SECURITY AND CONTROL OF SUPPLIES.—(1) Chapter 171 
10 use 2891 et 
of such title is repealed. 
8^9- 
(2) The tables of chapters at the beginning of subtitle A, and 
at the beginning of part IV of subtitle A, of such title are each 
amended by striking out the item relating to chapter 171. 
(c) ANNUAL AUTHORIZATION OF MILITARY TRAINING STUDENT 
LOADS.—Section 115 of such title is amended— 
(1) in subsection (a), by striking out paragraph (3); 
(2) in subsection (b)— 
(A) by inserting "or" at the end of paragraph (1); 
(B) by striking out "; or" at the end of paragraph 
(2) and inserting in lieu thereof a period; and 
(C) by striking out paragraph (3); and 
(3) by striking out subsection (f). 
(d) PORTIONS OF ANNUAL MANPOWER REQUIREMENTS REPORT.— 
Section 115a of such title is amended— 
(1) in subsection (b)(2), by striking out subparagraph (C); 
(2) by striking out subsection (d); 
(3) by redesignating subsection (e) as subsection (d) and 
striking out paragraphs (4) and (5) thereof; 
(4) by striking out subsection (f); and 
(5) by redesignating subsection (g) as subsection (e). 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 443 
(e) OBSOLETE AUTHORITY FOR PAYMENT OF STIPENDS FOR MEM-
BERS OF CERTAIN ADVISORY COMMITTEES AND BOARDS OF VISITORS 
OF SERVICE ACADEMIES.—(1) The second sentence of each of sections 
173(b) and 174(b) of such title is amended to read as follows: 
"Other members and part-time advisers shall (except as otherwise 
specifically authorized by law) serve without compensation for such 
service.". 
(2) Sections 4355(h), 6968(h), and 9355(h) of such title are 
amended by striking out "is entitled to not more than $5 a day 
and". 
(f) ANNUAL BUDGET INFORMATION CONCERNING RECRUITING 
COSTS.—(1) Section 227 of such title is repealed. 
(2) The table of sections at the beginning of chapter 9 of 
such title is amended bj'^ striking out the item relating to section 
227. 
(g) EXPIRED AUTHORITY RELATING TO PEACEKEEPING ACTIVI-
TIES.—(1) Section 403 of such title is repealed. 
(2) The table of sections at the beginning of subchapter I 
of chapter 20 of such title is amended by striking out the item 
relating to section 403. 
(h) PROCUREMENT OF GASOHOL FOR DEPARTMENT OF DEFENSE 
MOTOR VEHICLES.—(1) Subsection (a) of section 2398 of such title 
is repealed. 
(2) Such section is further amended— 
(A) by redesignating subsections (b) and (c) as subsections 
(a) and (b), respectively; and 
(B) in subsection (b), as so redesignated, by striking out 
"subsection (b)" and inserting in lieu thereof "subsection (a)", 
(i) REQUIREMENT OF NOTICE OF CERTAIN DISPOSALS AND GIFTS 
B
Y SECRETARY OF NAVY.—Section 7545 of such title is amended— 
(1) by striking out subsection (c); and 
(2) by redesignating subsection (d) as subsection (c). 
(j) ANNUAL REPORT ON BIOLOGICAL DEFENSE RESEARCH PRO-
GRAM.—(1) Section 2370 of such title is repealed. 
(2) The table of sections at the beginning of chapter 139 of 
such title is amended by striking out the item relating to such 
section. 
(k) REPORTS AND NOTIFICATIONS RELATING TO CHEMICAL AND 
BIOLOGICAL AGENTS.—Subsection (a) of section 409 of Public Law 
91-121 (50 U.S.C. 1511) is repealed. 
(1) ANNUAL REPORT ON BALANCED TECHNOLOGY INITIATIVE.— 
Subsection (e) of section 211 of the National Defense Authorization 
Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 
Stat. 1394) is repealed. 
10 USC 113 note. 
(m) REPORT ON ENVIRONMENTAL RESTORATION COSTS FOR 
INSTALLATIONS TO B E CLOSED UNDER 1990 BASE CLOSURE LAW.— 
Section 2827 of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 2687 note) 
is amended by striking out subsection (b). 
(n) LIMITATION ON AMERICAN DIPLOMATIC FACILITIES IN GER-
MANY.—Section 1432 of the National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1833) is 
repealed. 
SEC. 1062. REPORTS REQUIRED BY TITLE 10, UNITED STATES CODE. 
(a) ANNUAL REPORT ON RELOCATION ASSISTANCE PROGRAMS.— 
Section 1056 of title 10, United States Code, is amended— 
110 STAT. 444 
PUBLIC LAW 104-106—FEB. 10, 1996 
(1) by striking out subsection (f); and 
(2) by redesignating subsection (g) as subsection (f). 
(b) 
NOTICE OF SALARY INCREASES FOR FOREIGN NATIONAL 
EMPLOYEES.—Section 1584 of such title is amended— 
(1) by striking out subsection (b); and 
(2) in subsection (a), by striking out "(a) WAIVER OF 
EMPLOYMENT RESTRICTIONS FOR CERTAIN PERSONNEL.—". 
(c) NOTICE REGARDING CONTRACTS PERFORMED FOR PERIODS 
EXCEEDING 10 YEARS.—(1) Section 2352 of such title is repealed. 
(2) The table of sections at the beginning of chapter 139 of 
such title is amended by striking out the item relating to section 
2352. 
(d) REPORT ON LOW-RATE PRODUCTION UNDER NAVAL VESSEL 
AND MILITARY SATELLITE PROGRAMS.—Section 2400(c) of such title 
is amended— 
(1) by striking out paragraph (2); and 
(2) in paragraph (1)— 
(A) by striking out "(1)"; and 
(B) by redesignating clauses (A) and (B) as clauses 
(1) and (2), respectively. 
(e) REPORT ON WAIVERS OF PROHIBITION ON EMPLOYMENT OF 
FELONS.—Section 2408(a)(3) of such title is amended by striking 
out the second sentence. 
(f) REPORT ON DETERMINATION NOT TO DEBAR FOR FRAUDULENT 
USE OF LABELS.—Section 2410f(a) of such title is amended by 
striking out the second sentence. 
(g) NOTICE OF MILITARY CONSTRUCTION CONTRACTS ON GUAM.— 
Section 2864(b) of such title is amended by striking out "after 
the 21-day period" and all that follows through "determination". 
SEC. 1063. REPORTS REQUIRED BY DEFENSE AUTHORIZATION AND 
APPROPRIATIONS ACTS. 
(a) PUBLIC LAW 99-661 REQUIREMENT FOR REPORT ON FUNDING 
FOR NICARAGUAN DEMOCRATIC RESISTANCE.—Section 1351 of 
the 
National Defense Authorization Act for Fiscal Year 1987 (Public 
Law 99-661; 100 Stat. 3995; 10 U.S.C. 114 note) is amended— 
(1) by striking out subsection (b); and 
(2) 
in 
subsection 
(a), 
by 
striking 
out 
"(a) 
LIMITATION.—". 
(b) ANNUAL REPORT ON OVERSEAS MILITARY FACILITY INVEST-
MENT RECOVERY ACCOUNT.—Section 2921 of the Military Construc-
tion Authorization Act for Fiscal Year 1991 (division B of Public 
Law 101-510; 10 U.S.C. 2687 note) is amended— 
(1) by striking out subsection (f); and 
(2) by redesignating subsections (g) and (h) as subsections 
(f) and (g), respectively. 
(c) SCIENCE, MATHEMATICS, AND ENGINEERING EDUCATION MAS-
TER PLAN.—Section 829 of the National Defense Authorization Act 
for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 
1444; 10 U.S.C. 2192 note) is repealed. 
(d) REPORT REGARDING HEATING FACILITY MODERNIZATION AT 
KAISERSLAUTERN.—Section 8008 of the Department of Defense 
Appropriations Act, 1994 (PubHc Law 103-139; 107 Stat. 1438), 
is amended by inserting "but without regard to the notification 
requirement in subsection (b)(2) of such section," after "section 
2690 of title 10, United States Code,". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 445 
SEC. 1064. REPORTS REQUIRED BY OTHER PROVISIONS OF LAW. 
(a) REQUIREMENT UNDER ARMS EXPORT CONTROL ACT FOR 
QUARTERLY REPORT ON PRICE AND AVAILABILITY ESTIMATES.—Sec-
tion 28 of the Arms Export Control Act (22 U.S.C. 2768) is repealed. 
(b) ANNUAL REPORT ON NATIONAL SECURITY AGENCY EXECUTIVE 
PERSONNEL.—Section 12(a) of the National Security Agency Act 
of 1959 (50 U.S.C. 402 note) is amended by striking out 
paragraph (5). 
(c) REPORTS CONCERNING CERTAIN FEDERAL CONTRACTING AND 
FINANCIAL TRANSACTIONS.—Section 1352 of title 31, United States 
Code, is amended— 
(1) in subsection (b)(6)(A), by inserting "(other than the 
Secretary of Defense and Secretary of a military department)" 
after "The head of each agency"; and 
(2) in subsection (dXD, by inserting "(other than in the 
case of the Department of Defense or a military department)" 
after "paragraph (3) of this subsection". 
(d) ANNUAL REPORT ON WATER RESOURCES PROJECT AGREE-
MENTS.—Section 221 of the Flood Control Act of 1970 (42 U.S.C. 
1962d-5b) is amended— 
(1) by striking out subsection (e); and 
(2) by redesignating subsection (f) as subsection (e). 
(e) 
ANNUAL 
REPORT 
ON 
CONSTRUCTION 
OF TENNESSEE-
TOMBIGBEE WATERWAY.—Section 185 of the Water Resources Devel-
opment Act of 1976 (33 U.S.C. 544c) is amended by striking out 
the second sentence. 
(D ANNUAL REPORT ON MONITORING OF NAVY HOME PORT 
WATERS.—Section 7 of the Organotin Antifouling Paint Control 
Act of 1988 (33 U.S.C. 2406) is amended— 
(1) by striking out subsection (d); and 
(2) by redesignating subsections (e) and (f) as subsections 
(d) and (e), respectively. 
Subtitle Gr—Department of Defense 
Education Programs 
SEC. 1071. CONTINUATION OF UNIFORMED SERVICES UNIVERSITY OF 
10 USC 2112 
THE HEALTH SCIENCES. 
note. 
(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 commit-
ment to continuation of the University. 
(b) PERSONNEL STRENGTH.—During the five-year period begin-
ning on October 1, 1995,, the personnel staffing levels for the Uni-
formed Services University of the Health Sciences may not be 
reduced below the personnel staffing levels for the University as 
of October 1, 1993. 
(c) BUDGETARY COMMITMENT TO CONTINUATION.—It is the sense 
of Congress that the Secretary of Defense should budget for the 
operation of the Uniformed Services University of the Health 
110 STAT. 446 
PUBLIC LAW 104-106—FEB. 10, 1996 
Sciences during fiscal year 1997 at a level at least equal to the 
level of operations conducted at the University during fiscal year 
1995. 
SEC. 1072. ADDITIONAL GRADUATE SCHOOLS AND PROGRAMS AT UNI-
FORMED 
SERVICES 
UNIVERSITY 
OF 
THE HEALTH 
SCIENCES. 
(a) ADDITIONAL SCHOOLS AND PROGRAMS.—Subsection (h) of 
section 2113 of title 10, United States Code, is amended to read 
as follows: 
"(h) The Secretary of Defense may establish the following edu-
cational programs at the University: 
"(1) 
Postdoctoral, 
postgraduate, 
and 
technological 
institutes. 
"(2) A graduate school of nursing. 
"(3) Other schools or programs that the Secretary deter-
mines necessary in order to operate the University in a cost-
effective manner.". 
(b) CONFORMING AMENDMENTS TO REFLECT ADVISORY NATURE 
OF BOARD OF REGENTS.—(1) Section 2112(b) of such title is amended 
by striking out ", upon recommendation of the Board of Regents,". 
(2) Section 2113 of such title is amended— 
(A) in subsection (a)— 
(i) by striking out "a Board of Regents (hereinafter 
in this chapter referred to as the 'Board')" in the first 
sentence and inserting in lieu thereof "the Secretary of 
Defense"; and 
(ii) by inserting after the first sentence the following 
new sentence: "To assist the Secretary in an advisory capac-
ity, there is a Board of Regents for the University."; 
(B) in subsection (d), by striking out "Board" the first 
place it appears and inserting in lieu thereof "Secretary"; 
(C) in subsection (e), by striking out "of Defense"; 
(D) in subsection (f)( 1), by striking out "of Defense"; 
(E) in subsection (g)— 
(i) by striking out "Board is authorized to" in the 
first sentence and inserting in lieu thereof "Secretary may"; 
(ii) by striking out "Board is also authorized to" in 
the third sentence and inserting in lieu thereof "Secretary 
may"; and 
(iii) by striking out "Board may also, subject to the 
approval of the Secretary of Defense," in the fifth sentence 
and inserting in lieu thereof "Secretary may"; and 
(F) by striking out "Board" each place it appears in sub-
sections (f), (i), and (j) and inserting in lieu thereof "Secretary". 
(3) Section 2114(e)(1) of such title is amended by striking out 
"Board, upon approval of the Secretary of Defense," and inserting 
in lieu thereof "Secretary of Defense". 
(c) CLERICAL AMENDMENTS.—(1) The heading of section 2113 
of such title is amended to read as follows: 
"§ 2113. Administration of University". 
(2) The item relating to such section in the table of sections 
at the beginning of chapter 104 of such title is amended to read 
as follows: 
"2113. Administration of University.". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 447 
SEC. 1073. FUNDING FOR ADULT EDUCATION PROGRAMS FOR MILI-
TARY PERSONNEL AND DEPENDENTS OUTSIDE THE 
UNITED STATES. 
Of amounts appropriated pursuant to section 301, $600,000 
shall be available to carry out adult education programs, consistent 
with the Adult Education Act (20 U.S.C. 1201 et seq.), for the 
following: 
(1) Members of the Armed Forces who are serving in 
locations— 
(A) that are outside the United States; and 
(B) for which amounts are not required to be allotted 
under section 313(b) of such Act (20 U.S.C. 1201b(b)). 
(2) The dependents of such members. 
SEC. 1074. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT 
BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
FORCES 
AND 
DEPARTMENT OF 
DEFENSE 
CIVILIAN 
EMPLOYEES. 
(a) CONTINUATION OF DEPARTMENT OF DEFENSE PROGRAM FOR 
FISCAL YEAR 1996.—(1) Of the amounts authorized to be appro-
priated in section 301(5)— 
(A) $30,000,000 shall be available for providing educational 
agencies assistance (as defined in paragraph (4XA)) to local 
educational agencies; and 
(B) $5,000,000 shall be available for making educational 
agencies payments (as defined in paragraph (4)(B)) to local 
educational agencies. 
(2) Not later than June 30, 1996, the Secretary of Defense 
Notification. 
shall— 
(A) notify each local educational agency that is eligible 
for educational agencies assistance for fiscal year 1996 of that 
agency's eligibility for such assistance and the amount of such 
assistance for which that agency is eligible; and 
(B) notify each local educational agency that is eligible 
for an educational agencies payment for fiscal year 1996 of 
that agency's eligibility for such payment and the amount of 
the payment for which that agency is eligible. 
(3) The Secretary of Defense shall disburse funds made avail-
able under subparagraphs (A) and (B) of paragraph (1) not later 
than 30 days after the date on which notification to the eligible 
local educational agencies is provided pursuant to paragraph (2). 
(4) In this section: 
(A) The term "educational agencies assistance" means 
assistance authorized under subsection (b) of section 386 of 
the National Defense Authorization Act for Fiscal Year 1993 
(Pubhc Law 102-484; 20 U.S.C. 238 note). 
(B) The term "educational agencies payments" means pay-
ments authorized under subsection (d) of that section, as 
amended by subsection (d). 
(b) SPECIAL RULE FOR 1994 PAYMENTS.—The Secretary of Edu-
cation shall not consider any payment to a local educational agency 
by the Department of Defense, that is available to such agency 
for current expenditures and used for capital expenses, as funds 
available to such agency for purposes of making a determination 
for fiscal year 1994 under section 3(d)(2)(B)(i) of the Act of Septem-
ber 30, 1950 (Public Law 874, 81st Congress) (as such Act was 
in effect on September 30, 1994). 
110 STAT. 448 
PUBLIC LAW 104-106—FEB. 10, 1996 
20 use 7703 
(c) REDUCTION IN IMPACT THRESHOLD.—Subsection (c)(1) of sec-
note- 
tion 386 of the National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484; 20 U.S.C. 238 note) is amended— 
(1) by striking out "30 percent" and inserting in lieu thereof 
"20 percent"; and 
(2) by striking out "counted under subsection (a) or (b) 
of section 3 of the Act of September 30, 1950 (Public Law 
874, Eighty-first Congress; 20 U.S.C. 238)" and inserting in 
lieu thereof "counted under section 8003(a) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 7703(a))". 
20 use 7703 
(d) 
ADJUSTMENTS 
RELATED 
TO 
BASE 
CLOSURES 
AND 
note- 
REALIGNMENTS.—Subsection (d) of section 386 of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
484; 28 U.S.C. 238 note) is amended to read as follows: 
"(d) 
ADJUSTMENTS 
RELATED 
TO 
BASE 
CLOSURES 
AND 
REALIGNMENTS.—^To assist communities in making adjustments 
resulting from reductions in the size of the Armed Forces, the 
Secretary of Defense shall, in consultation with the Secretary of 
Education, make payments to local educational agencies that, dur-
ing the period between the end of the school year preceding the 
fiscal year for which the payments are authorized and the beginning 
of the school year immediately preceding that school year, had 
an overall reduction of not less than 20 percent in the number 
of military dependent students as a result of the closure or realign-
ment of military installations.". 
20 use 7703 
(e) EXTENSION OF REPORTING REQUIREMENT.—Subsection (e)(1) 
note. 
of section 386 of the National Defense Authorization Act for Fiscal 
Year 1993 (Public Law 102-484; 20 U.S.C. 238 note) is amended 
by striking out "and 1995" and inserting in lieu thereof "1995, 
and 1996". 
(f) 
PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED 
CHIL-
DREN.—Subsection (f) of section 8003 of the Elementary and Second-
ary Education Act of 1965 (20 U.S.C. 7703) is amended— 
(1) in paragraph (2)— 
(A) in the matter preceding clause (i) of subparagraph 
(A), by striking "only if such agency" and inserting "if 
such agency is eligible for a supplementary payment in 
accordance with subparagraph (B) or such agency"; and 
(B) by 
adding 
at 
the 
end 
the 
following 
new 
subparagraph: 
"(D) A local educational agency shall only be eligible 
to receive additional assistance under this subsection if 
the Secretary determines that— 
"(i) such agency is exercising due diligence in 
availing itself of State and other financial assistance; 
and 
"(ii) the eligibility of such agency under State law 
for State aid with respect to the free public education 
of children described in subsection (a)(1) and the 
amount of such aid are determined on a basis no 
less favorable to such agency than the basis used in 
determining the eligibility of local educational agencies 
for State aid, and the amount of such aid, with respect 
to the free public education of other children in the 
State."; and 
(2) in paragraph (3)— 
(A) in subparagraph (A)— 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 449 
(i) in the matter preceding clause (i), by inserting 
"(other than any amount received under paragraph 
(2)(B))" after "subsection"; 
(ii) in subclause (I) of clause (i), by striking "or 
the average per-pupil expenditure of all the States"; 
(iii) by amending clause (ii) to read as follows: 
"(ii) The Secretary shall next multiply the amount 
determined under clause (i) by the total number of 
students in average daily attendance at the schools 
of the local educational agency."; and 
(iv) by amending clause (iii) to read as follows: 
"(iii) The Secretary shall next subtract from the 
amount determined under clause (ii) all funds available 
to the local educational agency for current expendi-
tures, but shall not so subtract funds provided— 
"(I) under this Act; or 
"(II) by any department or agency of the Fed-
eral Government (other than the Department) that 
are used for capital expenses."; and 
(B) by amending subparagraph (B) to read as follows: 
"(B) SPECIAI. RULE.—^With respect to payments under 
this subsection for a fiscal year for a local educational 
agency described in clause (ii) or (iii) of paragraph (2)(A), 
the maximum amount of payments under this subsection 
shall be equal to— 
"(i) the product o
f
— 
"(I) the average per-pupil expenditure in all 
States multiplied by 0.7, except that such amount 
may not exceed 125 percent of the average per-
pupil expenditure in all local educational agencies 
in the State; multiplied by 
"(II) the number of students described in 
subparagraph (A) or (B) of subsection (a)(1) for 
such agency; minus 
"(ii) the amount of payments such agency receives 
under subsections (b) and (d) for such year.". 
(g) CURRENT YEAR DATA.—Paragraph (4) of section 8003(f) of 
such Act (20 U.S.C. 7703(f)) is amended to read as follows: 
"(4) CURRENT YEAR DATA.—For purposes of providing assist-
ance under this subsection the Secretary— 
"(A) shall use student and revenue data from the fiscal 
year for which the local educational agency is applying 
for assistance under this subsection; and 
"(B) shall derive the per pupil expenditure amount 
for such year for the local educational agency's comparable 
school districts by increasing or decreasing the per pupil 
expenditure data for the second fiscal year preceding the 
fiscal year for which the determination is made by the 
same percentage increase or decrease reflected between 
the per pupil expenditure data for the fourth fiscal year 
preceding the fiscal year for which the determination is 
made and the per pupil expenditure data for such second 
year.". 
(h) 
TECHNICAL AMENDMENTS TO CORRECT REFERENCES TO 
20USC7703 
REPEALED LAW.—Section 386 of the National Defense Authorization 
note. 
Act for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 
note) is amended— 
110 STAT. 450 
PUBLIC LAW 104-106—FEB. 10, 1996 
(1) in subsection (e)(2)— 
(A) in subparagraph (C), by inserting after "et seq.)," 
the following: "title VIII of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7701 et seq.),"; and 
(B) in subparagraph (D)(iii), by striking out "under 
subsections (a) and (b) of section 3 of such Act (20 U.S.C. 
238)"; and 
(2) in subsection (h)— 
(A) in paragraph (1), by striking out "section 14101 
of the Elementary and Secondary Education Act of 1965" 
and inserting in lieu thereof "section 8013(9) of the 
Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7713(9))"; and 
(B) by striking out paragraph (3) and inserting in 
lieu thereof the following new paragraph: 
"(3) The term 'State' means each of the 50 States and 
the District of Columbia.". 
SEC. 1075. SHARING OF PERSONNEL OF DEPARTMENT OF DEFENSE 
DOMESTIC DEPENDENT SCHOOLS AND DEFENSE DEPEND-
ENTS' EDUCATION SYSTEM. 
Section 2164(e) of title 10, United States Code, is amended 
by adding at the end the following: 
"(4)(A) The Secretary may, without regard to the provisions 
of any law relating to the number, classification, or compensation 
of employees— 
"(i) transfer employees from schools established under this 
section to schools in the defense dependents' education system 
in order to provide the services referred to in subparagraph 
(B) to such system; and 
"(ii) transfer employees from such system to schools estab-
lished under this section in order to provide such services 
to those schools. 
"(B) The services referred to in subparagraph (A) are the 
following: 
"(i) Administrative services. 
"(ii) Logistical services, 
"(iii) Personnel services. 
"(iv) Such other services as the Secretary considers 
appropriate. 
"(C) Transfers under this paragraph shall extend for such peri-
ods as the Secretary considers appropriate. The Secretary shall 
provide appropriate compensation for employees so transferred. 
"(D) The Secretary may provide that the transfer of an employee 
under this paragraph occur without reimbursement of the school 
or system concerned. 
"(E) In this paragraph, the term 'defense dependents' education 
system' means the program established and operated under section 
1402(a) of the Defense Dependents' Education Act of 1978 (20 
U.S.C. 921(a)).". 
SEC. 1076. INCREASE IN RESERVE COMPONENT MONTGOMERY GI 
BILL 
EDUCATIONAL 
ASSISTANCE 
ALLOWANCE 
WITH 
RESPECT TO SKILLS OR SPECIALTIES FOR WHICH THERE 
IS A CRITICAL SHORTAGE OF PERSONNEL. 
Section 16131 of title 10, United States Code, is amended 
by adding at the end the following new subsection: 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 451 
"(j)(l) In the case of a person who has a skill or specialty 
designated by the Secretary concerned as a skill or specialty in 
which there is a critical shortage of personnel or for which it 
is difficult to recruit or, in the case of critical units, retain personnel, 
the Secretary concerned may increase the rate of the educational 
assistance allowance applicable to that person to such rate in excess 
of the rate prescribed under subparagraphs (A) through (D) of 
subsection (b)(1) as the Secretary of Defense considers appropriate, 
but the amount of any such increase may not exceed $350 per 
month. 
"(2) In the case of a person who has a skill or specialty des-
ignated by the Secretar}^ concerned as a skill or specialty in which 
there is a critical shortage of personnel or for which it is difficult 
to recruit or, in the case of critical units, retain personnel, who 
is eligible for educational benefits under chapter 30 (other than 
section 3012) of title 38 and who meets the eligibility criteria 
specified in subparagraphs (A) and (B) of section 16132(a)(1) of 
this title, the Secretary' concerned may increase the rate of the 
educational assistance allowance applicable to that person to such 
rate in excess of the rate prescribed under section 3015 of title 
38 as the Secretary of Defense considers appropriate, but the 
amount of any such increase may not exceed $350 per month. 
"(3) The authority provided by paragraphs (1) and (2) shall Regulations. 
be exercised by the Secretaries concerned under regulations pre-
scribed by the Secretary of Defense.". 
SEC. 1077. DATE FOR ANNUAL REPORT ON RESERVE COMPONENT 
MONTGOMERY 
GI 
BILL 
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. 1078. SCOPE OF EDUCATION PROGRAMS OF COMMUNITY COL-
LEGE OF THi: AIR FORCE. 
(a) 
LIMITATION TO MEMBERS 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". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) lo USC 9315 
shall apply with respect to enrollments in the Community College ^ote. 
of the Air Force after March 31, 1996. 
SEC. 1079. AMENDMENTS 
TO 
EDUCATION 
LOAN 
REPAYMENT 
PROGRAMS. 
(a) GENERAL EDUCATION LOAN REPAYMENT PROGRAM.—Section 
2171(a)(1) of title 10, United States Code, is amended— 
(1) by striking out "or" at the end of subparagraph (A); 
(2) by redesignating subparagraph (B) as subparagraph 
(C); and 
(3) by inserting after subparagraph (A) the following new 
subparagraph (B): 
"(B) any loan made under part D of such title (the William 
D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et 
seq.); or". 
(b) EDUCATION LOAI^I REPAYMENT PROGRAM FOR ENLISTED MEM-
BERS OF SELECTED RESERVE WITH CRITICAL SPECIALTIES.—Section 
16301(a)(1) of such title is amended— 
110 STAT. 452 
PUBLIC LAW 104-106—FEB. 10, 1996 
(1) by striking out "or" at the end of subparagraph (A); 
(2) by redesignating subparagraph (B) as subparagraph 
(C); and 
(3) by inserting after subparagraph (A) the following new 
subparagraph (B): 
"(B) any loan made under part D of such title (the William 
D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et 
seq.); or". 
(c) 
EDUCATION LOAN 
REPAYMENT PROGRAM FOR HEALTH 
PROFESSIONS OFFICERS SERVING IN SELECTED RESERVE WITH WAR-
TIME CRITICAL MEDICAL SKILL SHORTAGES.—Section 16302(a) of 
such title is amended— 
(1) by redesignating paragraphs (2) through (4) as para-
graphs (3) through (5) respectively; and 
(2) by inserting after paragraph (1) the following new para-
graph (2): 
"(2) any loan made under part D of such title (the William 
D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et 
seq.); or". 
Subtitle H—Other Matters 
SEC. 1081. NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, 
DEFENSE REINVESTMENT, AND DEFENSE CONVERSION 
PROGRAMS. 
(a) NATIONAL SECURITY OBJECTIVES FOR NATIONAL TECH-
NOLOGY AND INDUSTRIAL BASE.—(1) Section 2501 of title 10, United 
States Code, is amended— 
(A) in subsection (a)— 
(i) by striking out "DEFENSE POLICY" in the subsection 
heading and inserting in lieu thereof "NATIONAL SECURITY"; 
and 
(ii) by striking out paragraph (5); 
(B) by striking out subsection (b); and 
(C) by redesignating subsection (c) as subsection (b). 
(2) The heading of such section is amended to read as follows: 
"§2501. National security objectives concerning national 
technology and industrial base". 
(b) NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE 
COUNCIL.—Section 2502(c) of such title is amended— 
(1) in paragraph (1), by striking out subparagraph (B) 
and inserting in lieu thereof the following new subparagraph: 
"(B) programs for achieving such national security 
objectives; and"; 
(2) by striking out paragraph (2); and 
(3) by redesignating paragraph (3) as paragraph (2). 
(c) MODIFICATION OF DEFENSE DUAL-USE CRITICAL TECH-
NOLOGY PARTNERSHIPS PROGHAM.^^ection 2511 of such title is 
amended to read as follows: 
"§2511. Defense dual-use critical technology program 
"(a) ESTABLISHMENT OF PROGRAM.—The Secretary of Defense 
shall conduct a program to further the national security objectives 
set forth in section 2501(a) of this title by encouraging and providing 
for research, development, and application of dual-use critical tech-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 453 
nologies. The Secretary may make grants, enter into contracts, 
or enter into cooperative agreements and other transactions pursu-
ant to section 2371 of this title in furtherance of the program. 
The Secretary shall identify projects to be conducted as part of 
the program. 
"(b) ASSISTANCE AUTHORIZED.—The Secretary of Defense may 
provide technical and other assistance to facilitate the achievement 
of the purposes of projects conducted under the program. In provid-
ing such assistance, the Secretary shall make available, as appro-
priate for the work to be performed, equipment and facilities of 
Department of Defense laboratories (including the scientists and 
engineers at those laboratories) for purposes of projects selected 
by the Secretary. 
"(c) FINANCIAL COMMITMENT OF NON-FEDERAL GOVERNMENT 
PARTICIPANTS.^ 1) The total amount of funds provided by the Fed-
eral Government for a project conducted under the program may 
not exceed 50 percent of the total cost of the project. However, 
the Secretary of Defense may agree to a project in which the 
total amount of funds provided by the Federal Government exceeds 
50 percent if the Secretary determines the project is particularly 
meritorious, but the project would not otherwise have sufficient 
non-Federal funding or in-kind contributions. 
"(2) The Secretary may prescribe regulations to provide for 
consideration of in-kind contributions by non-Federal Government 
participants in a project conducted under the program for the 
purpose of calculating the share of the project costs that has been 
or is being undertaken by such participants. In such regulations, 
the Secretary may authorize a participant that is a small business 
concern to use funds received under the Small Business Innovation 
Research Program or the Small Business Technology Transfer Pro-
gram to help pay the costs of project activities. Any such funds 
so used may be considered in calculating the amount of the financial 
commitment undertaken by the non-Federal Government partici-
pants unless the Secretary determines that the small business 
concern has not made a significant equity percentage contribution 
in the project from non-Federal sources. 
"(3) The Secretary shall consider a project proposal submitted 
by a small business concern without regard to the ability of the 
small business concern to immediately meet its share of the antici-
pated project costs. Upon the selection of a project proposal submit-
ted by a small business concern, the small business concern shall 
have a period of not less than 120 days in which to arrange 
to meet its financial commitment requirements under the project 
from sources other than a person of a foreign country. If the Sec-
retary determines upon the expiration of that period that the small 
business concern will be unable to meet its share of the anticipated 
project costs, the Secretary shall revoke the selection of the project 
proposal submitted by the small business concern. 
"(d) SELECTION PROCESS.—Competitive procedures shall be used 
in the conduct of the program. 
"(e) SELECTION CRITERIA.—The criteria for the selection of 
projects under the program shall include the following: 
"(1) The extent to which the proposed project advances 
and enhances the national security objectives set forth in sec-
tion 2501(a) of this title. 
"(2) The technical excellence of the proposed project. 
110 STAT. 454 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(3) The qualifications of the personnel proposed to partici-
pate in the research actvities of the proposed project. 
"(4) An assessment of timely private sector investment 
in activities to achieve the goals and objectives of the proposed 
project other than through the project. 
"(5) The potential effectiveness of the project in the further 
development and application of each technology proposed to 
be developed by the project for the national technology and 
industrial base. 
"(6) The extent of the financial commitment of eligible 
firms to the proposed project. 
"(7) The extent to which the project does not unnecessarily 
duplicate projects undertaken by other agencies. 
"(f) REGULATIONS.—^The Secretary of Defense shall prescribe 
regulations for the purposes of this section.". 
(d) 
FEDERAL 
DEFENSE 
LABORATORY 
DIVERSIFICATION 
PRO-
GRAM.—Section 2519 of such title is amended— 
(1) in subsection (b), by striking out "referred to in section 
2511(b) ofthis title"; and 
(2) in subsection (f), by striking out "section 2511(f)" and 
inserting in lieu thereof "section 2511(e)". 
(e) MANUFACTURING SCIENCE AND TECHNOLOGY PROGRAM.— 
Subsection (b) of section 2525 of such title is amended to read 
as follows: 
"(b) PURPOSE OF PROGRAM.—-The Secretary of Defense shall 
use the program— 
"(1) to provide centralized guidance and direction (including 
goals, milestones, and priorities) to the military departments 
and the Defense Agencies on all matters relating to manufactur-
ing technology; 
"(2) to direct the development and implementation of 
Department of Defense plans, programs, projects, activities, 
and policies that promote the development and application 
of advanced technologies to manufacturing processes, tools, and 
equipment; 
"(3) to improve the manufacturing quality, productivity, 
technology, and practices of businesses and workers providing 
goods and services to the Department of Defense; 
"(4) to promote dual-use manufacturing processes; 
"(5) to disseminate information concerning improved manu-
facturing improvement concepts, including information on such 
matters as best manufacturing practices, product data exchange 
specifications, computer-aided acquisition and logistics support, 
and rapid acquisition of manufactured parts; 
"(6) to sustain and enhance the skills and capabilities of 
the manufacturing work force; 
"(7) to promote high-performance work systems (with devel-
opment and dissemination of production technologies that build 
upon the skills and capabilities of the work force), high levels 
of worker education and training; and 
"(8) to ensure appropriate coordination between the manu-
facturing technology programs and industrial preparedness pro-
grams of the Department of Defense and similar programs 
undertaken by other departments and agencies of the Federal 
Government or by the private sector.". 
(D REPEAL OF VARIOUS ASSISTANCE PROGRAMS.—Sections 2512, 
2513, 2520, 2521, 2522, 2523, and 2524 of such title are repealed. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 455 
(g) 
REPEAL OF MILITARY-CIVILIAN INTEGRATION AND TECH-
NOLOGY TRANSFER ADVISORY BOARD.—Section 2516 of such title 
is repealed. 
(h) REPEAL OF OBSOLETE DEFINITIONS.—Section 2491 of such 
title is amended— 
(1) by striking out paragraphs (11) and (12); and 
(2) by redesignating paragraphs (13), (14), (15), and (16) 
as paragraphs (11), (12), (13), and (14), respectively. 
(i) CLERICAL AMENDMENTS.—(1) The table of sections at the 
beginning of subchapter II of chapter 148 of such title is amended 
by striking out the item relating to section 2501 and inserting 
in lieu thereof the following new item: 
"2501. National security objectives concerning national technology and industrial 
base.". 
(2) The table of sections at the beginning of subchapter III 
of such chapter is amended— 
(A) by striking out the item relating to section 2511 and 
inserting in lieu thereof the following new item: 
"2511. Defense dual-use critical technology program."; and 
(B) by striking out the items relating to sections 2512, 
2513, 2516, and 2520. 
(3) The table of sections at the beginning of subchapter IV 
of such chapter is amended by striking out the items relating 
to sections 2521, 2522, 2523, and 2524. 
SEC. 1082. AMMUNITION INDUSTRLf\L BASE. 
(a) REVIEW OF AMMUNITION PROCUREMENT PROGRAMS.—^The 
Secretary of Defense shall carry out a review of the programs 
of the Department of Defense for the procurement of ammunition. 
The review shall include the Department of Defense management 
of ammunition procurement programs, including the procedures 
of the Department for the planning for, budgeting for, administra-
tion, and carrying out of such programs. The Secretary shall begin 
the review not later than 30 days after the date of the enactment 
of this Act. 
(b) MATTERS TO BE REVIEWED.—^The review under subsection 
(a) shall include an assessment of the following: 
(1) The practicability and desirability of (A) continuing 
to use centralized procurement practices (through a single 
executive agent) for the procurement of ammunition required 
by the Armed Forces, and (B) using such centralized procure-
ment practices for the procurement of all such ammunition. 
(2) The capability of the ammunition production facilities 
of the Government to meet the requirements of the Armed 
Forces for procurement of ammunition. 
(3) The practicability and desirability of converting those 
ammunition production facilities to ownership or operation by 
private sector entities. 
(4) The practicability and desirability of integrating the 
budget planning for the procurement of ammunition among 
the Armed Forces. 
(5) The practicability and desirability of establishing an 
advocate within the Department of Defense for matters relating 
to the ammunition industrial base, with such an advocate to 
be responsible for— 
(A) establishing the quantity and price of ammunition 
procured by the Armed Forces; and 
110 STAT. 456 
PUBLIC LAW 104-106—FEB. 10, 1996 
(B) establishing and implementing policy to ensure 
the continuing capability of the ammunition industrial base 
in the United States to meet the requirements of the Armed 
Forces. 
(6) The practicability and desirability of providing informa-
tion on the ammunition procurement practices of the Armed 
Forces to Congress through a single source. 
(c) REPORT.—^Not later than April 1, 1996, the Secretary shall 
submit to the congressional defense committees a report on the 
review carried out under subsection (a). The report shall include 
the following: 
(1) The results of the review. 
(2) A discussion of the methodologies used in carrying 
out the review. 
(3) An assesstnent of various methods of ensuring the 
continuing capability of the ammunition industrial base of the 
United States to nfeet the requirements of the Armed Forces. 
(4) Recommendations of means (including legislation) of 
implementing those methods in order to ensure such continuing 
capability. 
SEC. 1083. POLICY 
CONCERNmC 
EXCESS 
DEFENSE 
INDUSTRIAL 
CAPACITY. 
No funds appropriated pursuant to an authorization of appro-
priations in this Act may be used for capital investment in, or 
the development and construction of, a Government-owned, Govern-
ment-operated defense industrial facility unless the Secretary of 
Defense certifies to the Congress that no similar capability or 
minimally used capacity exists in any other Government-owned, 
Government-operated defense industrial facility. 
SEC. 1084. SENSE OF CONGRESS CONCERNING ACCESS TO SECOND-
ARY SCHOOL STUDENT INFORMATION FOR RECRUITING 
PURPOSES. 
(a) SENSE OF CONGRESS.—It is the sense of Congress that— 
(1) the States (with respect to public schools) and entities 
operating private secondary schools should not have a policy 
of denying, or otherwise effectively preventing, the Secretary 
of Defense from obtaining for military recruiting purposes— 
(A) entry to any secondary school or access to students 
at any secondary school equal to that of other employers; 
or 
(B) access to directory information pertaining to stu-
dents at secondary schools equal to that of other employers 
(other than in a case in which an objection has been raised 
as described in paragraph (2)); and 
(2) any State, and any entity operating a private secondary 
school, that releases directory information secondary school 
students should— 
(A) give public notice of the categories of such informa-
tion to be released; and 
(B) allow a reasonable period after such notice has 
been given for a student or (in the case of an individual 
younger than 18 years of age) a parent to inform the 
school that any or all of such information should not be 
released without obtaining prior consent from the student 
or the parent, as the case may be. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 457 
(b) REPORT ON D O D PROCEDURES.—^Not later than March 1, 
1996, the Secretary of Defense shall submit to Congress a report 
on Department of Defense procedures for determining if and when 
a State or an entity operating a private secondary school has 
denied or prevented access to students or information as described 
in subsection (a)(1). 
(c) DEFINITIONS.—For purposes of this section: 
(1) The term "directory information" means, with respect 
to a student, the student's name, address, telephone listing, 
date and place of birth, level of education, degrees received, 
and (if available) the most recent previous educational program 
enrolled in by the student. 
(2) The term "student" means an individual enrolled in 
any program of education who is 17 years of age or older. 
SEC. 1085. DISCLOSURE 
OF 
INFORMATION 
CONCERNING 
UNAC- 
50 USC 435 note. 
COUNTED FOR UNITED STATES PERSONNEL FROM THE 
KOREAN CONFLICT, THE VIETNAM ERA, AND THE COLD 
WAR. 
Section 1082 of the National Defense Authorization Act for 
Fiscal Years 1992 and 1993 (Public Law 102-190; 50 U.S.C. 401 
note) is amended— 
(1) in subsection (b)(3)(A), by striking out "cannot be located 
after a reasonable effort." and inserting in lieu thereof "cannot 
be located by the Secretary of Defense— 
"(i) in the case of a person missing from the Vietnam 
era, after a reasonable effort; and 
"(ii) in the case of a person missing from the Korean 
Conflict or Cold War, after a period of 90 days from the 
date on which any record or other information referred 
to in paragraph (2) is received by the Department of 
Defense for disclosure review from the Archivist of the 
United States, the Library of Congress, or the Joint United 
States-Russian Commission on POW/MIAs."; and 
(2) in subsection (c)(1), by striking out "not later than 
September 30, 1995" and inserting in lieu thereof "not later 
than January 2, 1996". 
SEC. 1086. OPERATIONAL SUPPORT AIRLIFT AIRCRAFT FLEET. 
(a) SUBMITTAL OF J C S REPORT ON AIRCRAFT.—Not later than 
February 1, 1996, the Secretary of Defense shall submit to Congress 
the report that, as of the date of the enactment of this Act, is 
in preparation by the Chairman of the Joint Chiefs of Staff on 
operational support airlift aircraft. 
(b) CONTENT OF REPORT.—(1) The report referred to in sub-
section (a) shall contain findings and recommendations on the 
following: 
(A) Requirements for the modernization and safety of the 
operational support airlift aircraft fleet. 
(B) The disposition of aircraft that would be excess to 
that fleet upon fulfillment of the requirements referred to in 
subparagraph (A). 
(C) Plans and requirements for the standardization of the 
fleet, including plans and requirements for the provision of 
a single manager for all logistical support and operational 
requirements. 
(D) Central scheduling of all operational support airlift 
aircraft. 
29-194 O - 96 - 16 : QL 3 Part 1 
110 STAT. 458 
PUBLIC LAW 104-106—FEB. 10, 1996 
(E) Needs of the Department for helicopter support in 
the National Capital Region, including the acceptable uses of 
that support. 
(2) In preparing the report, the Chairman of the Joint Chiefs 
of Staff shall take into account the recommendation of the Commis-
sion on Roles and Missions of the Armed Forces to reduce the 
size of the operational support airlift aircraft fleet. 
(c) REGULATIONS.—(1) Upon completion of the report referred 
to in subsection (a), the Secretary shall prescribe regulations, 
consistent with the findings and recommendations set forth in the 
report, for the operation, maintenance, disposition, and use of oper-
ational support airlift aircraft. 
(2) The regulations shall, to the maximum extent practicable, 
provide for, and encourage the use of, commercial airlines in lieu 
of the use of such aircraft. 
(3) The regulations shall apply uniformly throughout the 
Department. 
(4) The regulations shall not require exclusive use of such 
aircraft for any particular class of government personnel. 
(d) REDUCTIONS IN FLYING HOURS.—(1) The Secretary shall 
ensure that the number of hours flown during fiscal year 1996 
by operational support airlift aircraft does not exceed the number 
equal to 85 percent of the number of hours flown during fiscal 
year 1995 by operational support airlift aircraft. 
(2) The Secretary should ensure that the number of hours 
flown in the National Capital Region during fiscal year 1996 by 
helicopters of the operational support airlift aircraft fleet does not 
exceed the number equal to 85 percent of the number of hours 
flown in the National Capital Region during fiscal year 1995 by 
helicopters of the operational support airlift aircraft fleet. 
(e) RESTRICTION ON AVAILABILITY OF FUNDS.—Of the funds 
appropriated pursuant to section 301 for the operation and use 
of operational support airlift aircraft, not more than 50 percent 
is available for obligation until the Secretary submits to Congress 
the report referred to in subsection (a). 
(f) DEFINITIONS.—In this section: 
(1) The term "operational support airlift aircraft" means 
aircraft of the Department of Defense designated within the 
Department as operational support airlift aircraft. 
(2) The term "National Capital Region" has the meaning 
given such term in section 2674(f)(2) of title 10, United States 
Code. 
SEC. 1087. CIVIL RESERVE AIR FLEET. 
Section 9512 of title 10, United States Code, is amended by 
striking out "full Civil Reserve Air Fleet" in subsections (b)(2) 
and (e) and inserting in lieu thereof "Civil Reserve Air Fleet". 
SEC. 1088. DAMAGE OR LOSS TO PERSONAL PROPERTY DUE TO EMER-
GENCY 
EVACUATION 
OR 
EXTRAORDINARY 
CIR-
CUMSTANCES. 
(a) SETTLEMENT OF CLAIMS OF PERSONNEL.—Section 3721(b)(1) 
of title 31, United States Code, is amended by inserting after 
the first sentence the following: "If, however, the claim arose from 
an emergency evacuation or from extraordinary circumstances, the 
amount settled and paid under the authority of the preceding 
sentence may exceed $40,000, but may not exceed $100,000.". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 459 
(b) APPLICABILITY.—The amendment made by subsection (a) 3i use 3721 
shall apply to claims arising before, on, or after the date of the note. 
enactment of this Act. 
(c) REPRESENTMENTS OF PREVIOUSLY PRESENTED CLAIMS.—(1) 
ai use 3721 
A claim under subsection (b) of section 3721 of title 31, United note. 
States Code, that was settled under such section before the date 
of the enactment of this Act may be represented under such section, 
as amended by subsection (a), to the head of the agency concerned 
to recover the amount equal to the difference between the actual 
amount of the damage or loss and the amount settled and paid 
under the authority of such section before the date of the enactment 
of this Act, except that— 
(A) the claim shall be represented in writing within two 
years after the date of the enactment of this Act; 
(B) a determination of the actual amount of the damage 
or loss shall have been made by the head of the agency con-
cerned pursuant to settlement of the claim under the authority 
of such section before the date of the enactment of this Act; 
(C) the claimant shall have proof of the determination 
referred to in subparagraph (B); and 
(D) the total of all amounts paid in settlement of the 
claim under the authority of such section may not exceed 
$100,000. 
(2) Subsection (k) of such section shall not apply to bar 
representment of a claim described in paragraph (1), but shall 
apply to such a claim that is represented and settled under that 
section after the date of the enactment of this Act. 
SEC. 1089. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION 
ACTIONS AGAINST DECEASED MEMBERS. 
Section 3711 of title 31, United States Code, is amended by 
adding at the end the following: 
"(g)(1) The Secretary of Defense may suspend or terminate 
an action by the Secretary or by the Secretary of a military depart-
ment under subsection (a) to collect a claim against the estate 
of a person who died while serving oh active duty as a member 
of the Army, Navy, Air Force, or Marine Corps if the Secretary 
determines that, under the circumstances applicable with respect 
to the deceased person, it is appropriate to do so. 
"(2) In this subsection, the term 'active duty' has the meaning 
given that term in section 101 of title 10.". 
SEC. 1090. CHECK CASHING AND EXCHANGE TRANSACTIONS FOR 
DEPENDENTS OF UNITED STATES GOVERNMENT PERSON-
NEL. 
(a) AUTHORITY TO CARRY OUT TRANSACTIONS.—Subsection (b) 
of section 3342 of title 31, United States Code, is amended— 
(1) by redesignating paragraphs (3), (4), and (5) as para-
graphs (4), (5), and (6), respectively; and 
(2) by inserting after paragraph (2) the following new 
paragraph: 
"(3) a dependent of personnel of the Government, but only— 
"(A) at a United States installation at which adequate 
banking facilities are not available; and 
"(B) 
in 
the 
case 
of 
negotiation 
of 
negotiable 
instruments, if the dependent's sponsor authorizes, in writ-
ing, the presentation of negotiable instruments to the 
disbursing official for negotiation.". 
110 STAT. 460 
PUBLIC LAW 104-106—FEB. 10, 1996 
(b) PAY OFFSET.—Subsection (c) of such section is amended— 
(1) by redesignating paragraph (3) as paragraph (4); and 
(2) by inserting after paragraph (2) the following new para-
graph (3): 
"(3) The amount of any deficiency resulting from cashing a 
check for a dependent under subsection (b)(3), including any charges 
assessed against the disbursing official by a financial institution 
for insufficient funds to pay the check, may be offset from the 
pay Q
f the dependent's sponsor.". 
(c) DEFINITIONS.—Such section is further amended by adding 
at the end the following: 
"(e) Regulations prescribed under subsection (d) shall include 
regulations that define the terms 'dependent' and 'sponsor' for the 
purposes of this section. In the regulations, the term 'dependent', 
with respect to a member of a uniformed service, shall have the 
meaning given that term in section 401 of title 37.". 
Virginia. 
SEC. 1091. DESIGNATION OF NATIONAL MARITIME CENTER. 
(a) 
DESIGNATION 
OF 
NATIONAL 
MAKITIME 
CENTER.—The 
NAUTICUS building, located at one Waterside Drive, Norfolk, Vir-
ginia, shall be known and designated as the "National Maritime 
Center". 
(b) REFERENCE TO NATIONAL MARITIME CENTER.—Any reference 
in a law, map, regulation, document, paper, or other record of 
the United States to the building referred to in subsection (a) 
shall be deemed to be a reference to the "National Maritime Center". 
SEC. 1092. S E N S E OF CONGRESS REGARDING HISTORIC PRESERVA-
TION OF MIDWAY ISLANDS. 
(a) FINDINGS.—Congress makes the following findings: 
(1) September 2, 1995, marks the 50th anniversary of the 
United States victory over Japan in World War II. 
(2) The Battle of Midway proved to be the turning point 
in the war in the Pacific, as United States Navy forces inflicted 
such severe losses on the Imperial Japanese Navy during the 
battle that the Imperial Japanese Navy never again took the 
offensive against United States or allied forces. 
(3) During the Battle of Midway, an outnumbered force 
of the United States Navy, consisting of 29 ships and other 
units of the Armed Forces under the command of Admiral 
Nimitz and Admiral Spruance, out-maneuvered and out-fought 
350 ships of the Imperial Japanese Navy. 
(4) It is in the public interest to erect a memorial to 
the Battle of Midway that is suitable to express the enduring 
gratitude of the American people for victory in the battle and 
to inspire future generations of Americans with the heroism 
and sacrifice of the members of the Armed Forces who achieved 
that victory. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that— 
(1) the Midway Islands and the surrounding seas deserve 
to be memorialized; 
(2) the historic structures related to the Battle of Midway 
should be maintained, in accordance with the National Historic 
Preservation Act (16 U.S.C. 470-470t), and subject to the avail-
ability of appropriations for that purpose. 
(3) appropriate access to the Midway Islands by survivors 
of the Battle of Midway, their families, and other visitors should 
be provided in a manner that ensures the public health and 
PUBLIC lAW 104-10&—FEB. 10, 1996 
110 STAT. 461 
safety on the Midway Islands and the conservation of the 
natural resources of those islands in accordance with existing 
Federal law. 
SEC. 1093. SENSE OF SENATE REGARDING FEDERAL SPENDING. 
It is the sense of the Senate that in pursuit of a balanced 
Federal budget, Congress should exercise fiscal restraint, particu-
larly in authorizing spending not requested by the executive branch 
and in proposing new programs. 
SEC. 1094. EXTENSION OF AUTHORITY FOR VESSEL WAR RISK INSUR-
ANCE. 
Section 1214 of the Merchant Marine Act, 1936 (46 App. U.S.C. 
1294), is amended by striking "June 30, 1995" and inserting in 
lieu thereof "June 30, 2000". 
TITLE XI—UNIFORM CODE OF MILITARY M
u
t
a
r
y j
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s
t
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c
e 
TTTOrnx/^T^ 
Amendments of 
e J U o I i d i j 
1995. 
SEC. 1101. SHORT TITLE. 
10 USC 801 note. 
This title may be cited as the "Military Justice Amendments 
of 1995". 
SEC. 1102. REFERENCES TO UNIFORM CODE OF MILITARY JUSTICE. 
Except as otherwise expressly provided, whenever in this title 
an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference shall 
be considered to be made to a section or other provision of chapter 
47 of title 10, United States Code (the Uniform Code of Military 
Justice). 
Subtitle A—Offenses 
SEC. 1111. REFUSAL TO TESTIFY BEFORE COURT-MARTIAL. 
Section 847(b) (article 47(b)) is amended— 
(1) in the first sentence, by inserting "indictment or" after 
"shall be tried on"; and 
(2) in the second sentence, by striking out "shall be" and 
all that follows and inserting in lieu thereof "shall be fined 
or imprisoned, or both, at the court's discretion.". 
SEC. 1112. FLIGHT FROM APPREHENSION. 
(a) IN GENERAL.—Section 895 (article 95) is amended to read 
as follows: 
"§ 895. Art. 95. Resistance, flight, breach of arrest, and escape 
"Any person subject to this chapter who— 
"(1) resists apprehension; 
"(2) flees from apprehension; 
"(3) breaks arrest; or 
"(4) escapes from custody or confinement; 
shall be punished as a court-martial may direct.". 
(b) CLERICAL AMENDMENT.—^The item relating to section 895 
(article 95) in the table of sections at the beginning of subchapter 
X is amended to read as follows: 
"895. Art. 95. Resistance, flight, breach of arrest, and escape.". 
110 STAT. 462 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 1113. CARNAL KNOWLEDGE. 
(a) GENDER NEUTRALITY.—Subsection (b) of section 920 (article 
120) is amended to read as follows: 
"(b) Any person subject to this chapter who, under cir-
cumstances not amounting to rape, commits an act of sexual inter-
course with a person— 
"(1) who is not that person's spouse; and 
"(2) who has not attained the age of sixteen years; 
is guilty of carnal knowledge and shall be punished as a court-
martial may direct.". 
(b) MISTAKE OF FACT.—Such section (article) is further amended 
by adding at the end the following new subsection: 
"(d)(1) In a prosecution under subsection (b), it is an affirmative 
defense that— 
"(A) the person with whom the accused committed the 
act of sexual intercourse had at the time of the alleged offense 
attained the age of twelve years; and 
"(B) the accused reasonably believed that that person had 
at the time of the alleged offense attained the age of sixteen 
years. 
"(2) The accused has the burden of proving a defense under 
paragraph (1) by a preponderance of the evidence.". 
Subtitle B—Sentences 
SEC. 1121. EFFECTIVE DATE FOR FORFEITURES OF PAY AND ALLOW-
ANCES AND REDUCTIONS IN GRADE BY SENTENCE OF 
COURT-MARTIAL. 
(a) EFFECTIVE DATE OF SPECIFIED PUNISHMENTS.—Subsection 
(a) of section 857 (article 57) is amended to read as follows: 
"(a)(1) Any forfeiture of pay or allowances or reduction in grade 
that is included in a sentence of a court-martial takes effect on 
the earlier of— 
"(A) the date that is 14 days after the date on which 
the sentence is adjudged; or 
"(B) the date on which the sentence is approved by the 
convening authority. 
"(2) On application by an accused, the convening authority 
may defer a forfeiture of pay or allowances or reduction in grade 
that would otherwise become effective under paragraph (1)(A) until 
the date on which the sentence is approved by the convening author-
ity. Such a deferment may be rescinded at any time by the conven-
ing authority. 
"(3) A forfeiture of pay or allowances shall be applicable to 
pay and allowances accruing on and after the date on which the 
sentence takes effect. 
"(4) In this subsection, the term 'convening authority', with 
respect to a sentence of a court-martial, means any person author-
ized to act on the sentence under section 860 of this title (article 
60).". 
10 use 857 note. 
(b) APPLICABILITY.—^The amendment made by subsection (a) 
shall apply to a case in which a sentence is adjudged by a court-
martial on or after the first day of the first month that begins 
at least 30 days after the date of the enactment of this Act. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 463 
SEC. 1122. REQUIRED FORFEITURE OF PAY AND ALLOWANCES DUR-
ING CONFINEMENT. 
(a) EFFECT OF PUNITIVE SEPARATION OR CONFINEMENT FOR 
MORE THAN SIX MONTHS.—(1) Subchapter VIII is amended by 
inserting after section 858a (article 58a) the following: 
"§ 858b. Art. 58b. Sentences: forfeiture of pay and allowances 
during confinement 
"(a)(1) A court-martial sentence described in paragraph (2) shall 
result in the forfeiture of pay and allowances due that member 
during any period of confinement or parole. The forfeiture pursuant 
to this section shall take effect on the date determined under 
section 857(a) of this title (article 57(a)) and may be deferred 
as provided in that section. The pay and allowances forfeited, in 
the case of a general court-martial, shall be all pay and allowances 
due that member during such period and, in the case of a special 
court-martial, shall be two-thirds of all pay and allowances due 
that member during such period. 
"(2) A sentence covered by this section is any sentence that 
includes— 
"(A) confinement for more than six months or death; or 
"(B) confinement for six months or less and a dishonorable 
or bad-conduct discharge or dismissal. 
"(b) In a case involving an accused who has dependents, the 
convening authority or other person acting under section 860 of 
this title (article 60) may waive any or all of the forfeitures of 
pay and allowances required by subsection (a) for a period not 
to exceed six months. Any amount of pay or allowances that, except 
for a waiver under this subsection, would be forfeited shall be 
paid, as the convening authority or other person taking action 
directs, to the dependents of the accused. 
"(c) If the sentence of a member who forfeits pay and allowances 
under subsection (a) is set aside or disapproved or, as finally 
approved, does not provide for a punishment referred to in sub-
section (a)(2), the member shall be paid the pay and allowances 
which the member would have been paid, except for the forfeiture, 
for the period during which the forfeiture was in effect.". 
(2) The table of sections at the beginning of subchapter VIII 
is amended by adding at the end the following new item: 
"858b. 58b. Sentences: forfeiture of pay and allowances during confinement.". 
(b) APPLICABILITY.—The section (article) added by the amend- 
10 USC 858b 
ment made by subsection (a)(1) shall apply to a case in which "ote. 
a sentence is adjudged by a court-martial on or after the first 
day of the first month that begins at least 30 days after the 
date of the enactment of this Act. 
(c) CONFORMING AMENDMENT.—(1) Section 804 of title 37, 
United States Code, is repealed. 
(2) The table of sections at the beginning of chapter 15 of 
such title is amended by striking out the item relating to section 
804. 
SEC. 1123. DEFERMENT OF CONFINEMENT. 
(a) DEFERMENT.—Subchapter VIII is amended— 
(1) by inserting after subsection (c) of section 857 (article 
57) the following: 
, 
, 
110 STAT. 464 
PUBLIC LAW 104-106—FEB. 10, 1996 
"§ 857a. Art. 57a. Deferment of sentences"; 
(2) by redesignating the succeeding two subsections as sub-
section (a) and (b); 
(3) in subsection (b), as redesignated by paragraph (2), 
by striking out "postpone" and inserting in Heu thereof "defer"; 
and 
(4) by inserting after subsection (b), as redesignated by 
paragraph (2), the following: 
"(c) In any case in which a court-martial sentences a person 
to confinement and the sentence to confinement has been ordered 
executed, but in which review of the case under section 867(a)(2) 
of this title (article 67(a)(2)) is pending, the Secretary concerned 
may defer further service of the sentence to confinement while 
that review is pending.". 
(b) CLERICAL AMENDMENT.—^The table of sections at the begin-
ning of such subchapter is amended by inserting after the item 
relating to section 857 (article 57) the following new item: 
"857a. 57a. Deferment of sentences.". 
Subtitle C—Pretrial and Post-Trial Actions 
SEC. 1131. ARTICLE 32 INVESTIGATIONS. 
Section 832 (article 32) is amended— 
(1) by redesignating subsection (d) as subsection (e); and 
(2) by inserting after subsection (c) the following new sub-
section (d): 
"(d) If evidence adduced in an investigation under this article 
indicates that the accused committed an uncharged offense, the 
investigating officer may investigate the subject matter of that 
offense without the accused having first been charged with the 
offense if the accused— 
"(1) is present at the investigation; 
"(2) is informed of the nature of each uncharged offense 
investigated; and 
"(3) is afforded the opportunities for representation, cross-
examination, and presentation prescribed in subsection (b).". 
SEC. 1132. SUBMISSION OF MATTERS TO THE CONVENING AUTHORITY 
FOR CONSIDERATION. 
Section 860(b)(1) (article 60(b)(1)) is amended by inserting after 
the first sentence the following: "Any such submission shall be 
in writing.". 
SEC. 1133. COMMITMENT OF ACCUSED TO TREATMENT FACILITY BY 
REASON OF LACK OF MENTAL CAPACITY OR MENTAL 
RESPONSIBILITY. 
(a) APPLICABLE PROCEDURES.—(1) Subchapter IX is amended 
by inserting after section 876a (article 76a) the following: 
"§ 876b. Art. 76b. Lack of mental capacity or mental respon-
sibility: commitment of accused for examination 
and treatment 
"(a) PERSONS INCOMPETENT TO STAND TRLU..—(1) In the case 
of a person determined under this chapter to be presently suffering 
from a mental disease or defect rendering the person mentally 
incompetent to the extent that the person is unable to understand 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 465 
the nature of the proceedings against that person or to conduct 
or cooperate inteUigently in the defense of the case, the general 
court-martial convening authority for that person shall commit 
the person to the custody of the Attorney General. 
"(2) The Attorney General shall take action in accordance with 
section 4241(d) of title 18. 
"(3) If at the end of the period for hospitalization provided 
for in section 4241(d) of title 18, it is determined that the committed 
person's mental condition has not so improved as to permit the 
trial to proceed, action shall be taken in accordance with section 
4246 of such title. 
"(4)(A) When the director of a facility in which a person is Notification, 
hospitalized pursuant to paragraph (2) determines that the person 
has recovered to such an extent that the person is able to under-
stand the nature of the proceedings against the person and to 
conduct or cooperate intelligently in the defense of the case, the 
director shall promptly transmit a notification of that determination 
to the Attorney General and to the general court-martial convening 
authority for the person. The director shall send a copy of the 
notification to the person's counsel. 
"(B) Upon receipt of a notification, the general court-martial 
convening authority shall promptly take custody of the person 
unless the person covered by the notification is no longer subject 
to this chapter. If the person is no longer subject to this chapter, 
the Attorney General shall take any action within the authority 
of the Attorney General that the Attorney General considers appro-
priate regarding the person. 
"(C) The director of the facility may retain custody of the 
person for not more than 30 days after transmitting the notifications 
required by subparagraph (A). 
"(5) In the application of section 4246 of title 18 to a case 
under this subsection, references to the court that ordered the 
commitment of a person, and to the clerk of such court, shall 
be deemed to refer to the general court-martial convening authority 
for that person. However, if the person is no longer subject to 
this chapter at a time relevant to the application of such section 
to the person, the United States district court for the district 
where the person is hospitalized or otherwise may be found shall 
be considered as the court that ordered the commitment of the 
person. 
"(b) PERSONS FOUND NOT GUILTY BY REASON OF LACK OF MEN-
TAL RESPONSIBILITY.—(1) If a person is found by a court-martial 
not guilty only by reason of lack of mental responsibility, the 
person shall be committed to a suitable facility until the person 
is eligible for release in accordance with this section. 
"(2) The court-martial shall conduct a hearing on the mental 
condition in accordance with subsection (c) of section 4243 of title 
18. Subsections (b) and (d) of that section shall apply with respect 
to the hearing. 
"(3) A report of the results of the hearing shall be made to Reports. 
the general court-martial convening authority for the person. 
"(4) If the court-martial fails to find by the standard specified 
in subsection (d) of section 4243 of title 18 that the person's release 
would not create a substantial risk of bodily injury to another 
person or serious damage of property of another due to a present 
mental disease or defect— 
110 STAT. 466 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(A) the general court-martial convening authority may 
commit the person to the custody of the Attorney General; 
and 
"(B) the Attorney General shall take action in accordance 
with subsection (e) of section 4243 of title 18. 
"(5) Subsections (f), (g), and (h) of section 4243 of title 18 
shall apply in the case of a person hospitalized pursuant to para-
graph (4)(B), except that the United States district court for the 
district where the person is hospitalized shall be considered as 
the court that ordered the person's commitment. 
"(c) GENERAL PROVISIONS.—(1) Except as otherwise provided 
in this subsection and subsection (d)(1), the provisions of section 
4247 of title 18 apply in the administration of this section. 
"(2) In the application of section 4247(d) of title 18 to hearings 
conducted by a court-martial under this section or by (or by order 
of) a general court-martial convening authority under this section, 
the reference in that section to section 3006A of such title does 
not apply. 
"(d) APPLICABILITY.—(1) The provisions of chapter 313 of title 
18 referred to in this section apply according to the provisions 
of this section notwithstanding section 4247(j) of title 18. 
"(2) If the status of a person as described in section 802 of 
this title (article 2) terminates while the person is, pursuant to 
this section, in the custody of the Attorney General, hospitalized, 
or on conditional release under a prescribed regimen of medical, 
psychiatric, or psychological care or treatment, the provisions of 
this section establishing requirements and procedures regarding 
a person no longer subject to this chapter shall continue to apply 
» 
to that person notwithstanding the change of status.". 
(2) The table of sections at the beginning of such subchapter 
is amended by inserting after the item relating to section 876a 
(article 76a) the following: 
"876b. 76b. Lack of mental capacity or mental responsibility: commitment of accused 
for examination and treatment.". 
(b) 
CONFORMING 
AMENDMENT.—Section 
802 
(article 2) 
is 
amended by adding at the end the following new subsection: 
"(e) The provisions of this section are subject to section 
876b(d)(2) of this title (article 76b(d)(2)).". 
10 use 876b 
(c) EFFECTIVE DATE.—Section 876b of title 10, United States 
note. 
Code (article 76b of the Uniform Code of Military Justice), as 
added by subsection (a), shall take effect at the end of the six-
month period beginning on the date of the enactment of this Act 
and shall apply with respect to charges referred to courts-martial 
after the end of that period. 
Subtitle D—^Appellate Matters 
SEC. 1141. APPEALS BY THE UNITED STATES. 
(a) APPEALS RELATING TO DISCLOSURE OF CLASSIFIED INFORMA-
TION.—Section 862(a)(1) (article 62(a)(1)) is amended to read as 
follows: 
"(a)(1) In a trial by court-martial in which a military judge 
presides and in which a punitive discharge may be adjudged, the 
United States may appeal the following (other than an order or 
ruling that is, or that amounts to, a finding of not guilty with 
respect to the charge or specification): 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 467 
"(A) An order or ruling of the military judge which termi-
nates the proceedings with respect to a charge or specification. 
"(B) An order or ruling which excludes evidence that is 
substantial proof of a fact material in the proceeding. 
"(C) An order or ruling which directs the disclosure of 
classified information. 
"(D) An order or ruling which imposes sanctions for 
nondisclosure of classified information. 
"(E) A refusal of the military judge to issue a protective 
order sought by the United States to prevent the disclosure 
of classified information. 
"(F) A refusal by the military judge to enforce an order 
described in subparagraph (E) that has previously been issued 
by appropriate authority.". 
(b) DEFINITIONS.—Section 801 (article 1) is amended by insert-
ing after paragraph (14) the following new paragraphs: 
"(15) The term 'classified information' means (A) any 
information or material that has been determined by an official 
of the United States pursuant to law, an Executive order, 
or regulation to require protection against unauthorized disclo-
sure for reasons of national security, and (B) any restricted 
data, as defined in section ll(y) of the Atomic Energy Act 
of 1954 (42 U.S.C. 2014(y)). 
"(16) The term 'national security' means the national 
defense and foreign relations of the United States.". 
SEC. 1142. REPEAL OF TERMINATION OF AUTHORITY FOR CfflEF JUS-
TICE OF THE UNITED STATES TO DESIGNATE ARTICLE 
HI JUDGES FOR TEMPORARY SERVICE ON COURT OF 
APPEALS FOR THE ARMED FORCES. 
Subsection (i) of section 1301 of the National Defense Authoriza-
tion Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 
10 U.S.C. 942 note) is repealed. 
Subtitle E—Other Matters 
SEC. 1151. ADVISORY COMMITTEE ON CRIMINAL LAW JURISDICTION 
10 USC 802 note. 
OVER CIVILIANS ACCOMPANYING THE ARMED FORCES IN 
TIME OF ARMED CONFLICT. 
(a) ESTABLISHMENT.—^Not later than 45 days after the date 
of the enactment of this Act, the Secretary of Defense and the 
Attorney General shall jointly appoint an advisory committee to 
review and make recommendations concerning the appropriate 
forum for criminal jurisdiction over civilians accompanying the 
Armed Forces in the field outside the United States in time of 
armed conflict. 
"
^ 
(b) MEMBERSHIP.—The committee shall be composed of at least 
five individuals, including experts in military law, international 
law, and Federal civilian criminal law. In making appointments 
to the committee, the Secretary and the Attorney General shall 
ensure that the members of the committee reflect diverse experi-
ences in the conduct of prosecution and defense functions. 
(c) DUTIES.—The committee shall do the following: 
(1) Review historical experiences and current practices 
concerning the use, training, discipline, and functions of 
civilians accompanying the Armed Forces in the field. 
110 STAT. 468 
PUBLIC LAW 104-106—FEB. 10, 1996 
(2) Based upon such review and other information available 
to the committee, develop specific recommendations concerning 
the advisability and feasibility of establishing United States 
criminal law jurisdiction over persons who as civilians accom-
pany the Armed Forces in the field outside the United States 
during time of armed conflict not involving a war declared 
by Congress, including whether such jurisdiction should be 
established through any of the following means (or a combina-
tion of such means depending upon the degree of the armed 
conflict involved): 
(A) Establishing court-martial jurisdiction over such 
persons. 
(B) Extending the jurisdiction of the Article III courts 
to cover such persons. 
(C) Establishing an Article I court to exercise criminal 
jurisdiction over such persons. 
(3) Develop such additional recommendations as the 
committee considers appropriate as a result of the review. 
(d) REPORT.—(1) Not later than December 15, 1996, the advisory 
committee shall transmit to the Secretary of Defense and the Attor-
ney General a report setting forth its findings and recommenda-
tions, including the recommendations required under subsection 
(c)(2). 
(2) Not later than January 15, 1997, the Secretary of Defense 
and the Attorney General shall jointly transmit the report of the 
advisory committee to Congress. The Secretary and the Attorney 
General may include in the transmittal any joint comments on 
the report that they consider appropriate, and either such official 
may include in the transmittal any separate comments on the 
report that such official considers appropriate. 
(e) DEFINITIONS.—For purposes of this section: 
(1) The term "Article I court" means a court established 
under Article I of the Constitution. 
(2) The term "Article III court" means a court established 
under Article III of the Constitution. 
(f) TERMINATION OF COMMITTEE.—The advisory committee shall 
terminate 30 days after the date on which the report of the commit-
tee is submitted to Congress under subsection (d)(2). 
SEC. 1152. TIME AFTER ACCESSION FOR INITIAL INSTRUCTION IN THE 
UNIFORM CODE OF MILITARY JUSTICE. 
Section 937(a)(1) (article 137(a)(1)) is amended by striking out 
"within six days" and inserting in lieu thereof "within fourteen 
days". 
SEC. 1153. TECHNICAL AMENDMENT. 
Section 866(f) (article 66(f)) is amended by striking out "Courts 
of Military Review" both places it appears and inserting in lieu 
thereof "Courts of Criminal Appeals". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 469 
TITLE XII—COOPERATIVE THREAT RE-
DUCTION WITH STATES OF FORMER 
SOVIET UNION 
SEC. 
1201. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
22 USC 5955 
PROGRAMS. 
note. 
(a) IN GENERAL.—For purposes of section 301 and other provi-
sions of this Act, Cooperative Threat Reduction programs are the 
programs specified in subsection (b). 
(b) SPECIFIED PROGRAMS.—^The programs referred to in sub-
section (a) are the following programs with respect to states of 
the former Soviet Union: 
(1) Programs to facilitate the elimination, and the safe 
and secure transportation and storage, of nuclear, chemical, 
and other weapons and their delivery vehicles. 
(2) Programs to facilitate the safe and secure storage of 
fissile materials derived from the elimination of nuclear weap-
ons. 
(3) Programs to prevent the proliferation of weapons, weap-
ons components, and weapons-related technology and expertise. 
(4) Programs to expand military-to-military and defense 
contacts. 
SEC. 1202. FISCAL YEAR 1996 FUNDING ALLOCATIONS. 
(a) IN GENERAL.—Of the amount appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative 
Threat Reduction programs, not more than the following amounts 
may be obligated for the purposes specified: 
(1) For elimination of strategic offensive weapons in Russia, 
Ukraine, Belarus, and Kazakhstan, $90,000,000. 
(2) For weapons security in Russia, $42,500,000. 
(3) For the Defense Enterprise Fund, $0. 
(4) For nuclear infrastructure elimination in Ukraine, 
Belarus, and Kazakhstan, $35,000,000. 
(5) For planning and design of a storage facility for Russian 
fissile material, $29,000,000. 
(6) For planning and design of a chemical weapons destruc-
tion facility in Russia, $73,000,000. 
(7) For activities designated as Defense and Military Con-
tacts/General Support/Training in Russia, Ukraine, Belarus, 
and Kazakhstan, $10,000,000. 
(8) For activities designated as Other Assessments/Support 
$20,500,000. 
(b) LIMITED AUTHORITY TO VARY INDIVIDUAL AMOUNTS.—(1) 
If the Secretary of Defense determines that it is necessary to 
do so in the national interest, the Secretary may, subject to para-
graph (2), obligate amounts for the purposes stated in any of the 
paragraphs of subsection (a) in excess of the amount specified 
for those purposes in that paragraph, but not in excess of 115 
percent of that amount. However, the total amount obligated for 
the purposes stated in the paragraphs in subsection (a) may not 
by reason of the use of the authority provided in the preceding 
sentence exceed the sum of the amounts specified in those 
paragraphs. 
110 STAT. 470 
PUBLIC LAW 104-106—FEB. 10, 1996 
Notification. 
President. 
22 u s e 5955 
note. 
Reports. 
(2) An obligation for the purposes stated in any of the para-
graphs in subsection (a) in excess of the amount specified in that 
paragraph may be made using the authority provided in paragraph 
(1) only after— 
(A) the Secretary submits to Congress a notification of 
the intent to do so together with a complete discussion of 
the justification for doing so; and 
(B) 15 days have elapsed following the date of the 
notification. 
(c) REIMBURSEMENT OF PAY ACCOUNTS.—Funds appropriated 
pursuant to the authorization of appropriations in section 301 for 
Cooperative Threat Reduction programs may be transferred to mili-
tary personnel accounts for reimbursement of those accounts for 
the amount of pay and allowances paid to reserve component 
personnel for service while engaged in any activity under a Coopera-
tive Threat Reduction program. 
SEC. 1203. PROHIBITION ON USE OF FUNDS FOR PEACEKEEPING 
EXERCISES AND RELATED ACTIVITIES WITH RUSSIA. 
None of the funds appropriated pursuant to the authorization 
in section 301 for Cooperative Threat Reduction programs may 
be obligated or expended for the purpose of conducting with Russia 
any peacekeeping exercise or other peacekeeping-related activity. 
SEC. 1204. REVISION TO AUTHORITY FOR ASSISTANCE FOR WEAPONS 
DESTRUCTION. 
Section 211 of PubUc Law 102-228 (22 U.S.C. 2551 note) is 
amended by adding at the end the following new subsection: 
"(c) As part of a transmission to Congress under subsection 
(b) of a certification that a proposed recipient of United States 
assistance under this title is committed to carrying out the matters 
specified in each of paragraphs (1) through (6) of that subsection, 
the President shall include a statement setting forth, in unclassified 
form (together with a classified annex if necessary), the determina-
tion of the President, with respect to each such paragraph, as 
to whether that proposed recipient is at that time in fact carrying 
out the matter specified in that paragraph.". 
SEC. 1205. PRIOR NOTICE TO CONGRESS OF OBLIGATION OF FUNDS. 
(a) ANNUAL REQUIREMENT.—(1) Not less than 15 days before 
any obligation of any funds appropriated for any fiscal year for 
a program specified under section 1201 as a Cooperative Threat 
Reduction program, the Secretary of Defense shall submit to the 
congressional committees specified in paragraph (2) a report on 
that proposed obligation for that program for that fiscal year. 
(2) The congressional committees referred to in paragraph (1) 
are the following: 
(A) The Committee on Armed Services, the Committee 
on Foreign Relations, and the Committee on Appropriations 
of the Senate. 
(B) The Committee on National Security, the Committee 
on International Relations, and the Committee on Appropria-
tions of the House of Representatives. 
(b) MATTERS TO BE SPECIFIED IN REPORTS.—Each such report 
shall specify— 
(1) the activities and forms of assistance for which the 
Secretary of Defense plans to obligate funds; 
(2) the amount of the proposed obligation; and 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 471 
(3) the projected involvement (if any) of any department 
or agency of the United States (in addition to the Department 
of Defense) and of the private sector of the United States 
in the activities and forms of assistance for which the Secretary 
of Defense plans to obligate such funds. 
SEC. 1206. REPORT ON ACCOUNTING FOR UNITED STATES ASSISTANCE. 
(a) REPORT.—(1) The Secretary of Defense shall submit to Con-
gress an annual report on the efforts made by the United States 
(including efforts through the use of audits, examinations, and 
on-site inspections) to ensure that assistance provided under 
Cooperative Threat Reduction programs is fully accounted for and 
that such assistance is being used for its intended purposes. 
(2) A report shall be submitted under this section not later 
than January 31 of each year until the Cooperative Threat Reduc-
tion programs are completed. 
(b) INFORMATION TO BE INCLUDED.—Each report under this 
section shall include the following: 
(1) A list of cooperative threat reduction assistance that 
has been provided before the date of the report. 
(2) A description of the current location of the assistance 
provided and the current condition of such assistance. 
(3) A determination of whether the assistance has been 
used for its intended purpose. 
(4) A description of the activities planned to be carried 
out during the next fiscal year to ensure that cooperative threat 
reduction assistance provided during that fiscal year is fully 
accounted for and is used for its intended purpose. 
(c) COMPTROLLER GENERAL ASSESSMENT.—^Not later than 30 
days after the date on which a report of the Secretary under 
subsection (a) is submitted to Congress, the Comptroller General 
of the United States shall submit to Congress a report giving 
the Comptroller General's assessment of the report and making 
any recommendations that the Comptroller General considers 
appropriate. 
SEC. 1207. LIMITATION ON ASSISTANCE TO NUCLEAR WEAPONS SCI-
ENTISTS OF FORMER SOVIET UNION. 
Amounts appropriated pursuant to the authorization of appro-
priations in section 301 for Cooperative Threat Reduction programs 
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 obli-
gated will not be used (1) to contribute to the modernization of 
the strategic nuclear forces of such states, or (2) for research, 
development, or production of weapons of mass destruction. 
SEC. 1208. LIMITATION RELATING TO OFFENSIVE BIOLOGICAL WAR-
FARE PROGRAM OF RUSSIA. 
(a) LIMITATION.—Of the amount appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative 
Threat Reduction programs that is available for the purpose stated 
in section 1202(a)(6), $60,000,000 may not be obligated or expended 
until the President submits to Congress either a certification as 
provided in subsection (b) or a certification as provided in subsection 
(c). 
22 u s e 5955 
note. 
Certification. 
President. 
110 STAT. 472 
PUBLIC LAW 104-106—FEB. 10, 1996 
(b) CERTIFICATION WITH RESPECT TO OFFENSIVE BIOLOGICAL 
WARFARE PROGRAM OF RUSSIA.—^A certification under this sub-
section is a certification by the President of each of the following: 
(1) That Russia is in compliance with its obligations under 
the Biological Weapons Convention. 
(2) That Russia has agreed with the United States and 
the United Kingdom on a common set of procedures to govern 
visits by officials of the United States and United Kingdom 
to military biological facilities of Russia, as called for under 
the Joint Statement on Biological Weapons issued by officials 
of the United States, the United Kingdom, and Russia on 
September 14, 1992. 
(3) That visits by officials of the United States and United 
Kingdom to the four declared military biological facilities of 
Russia have occurred. 
(c) ALTERNATIVE CERTIFICATION.—^A certification under this 
subsection is a certification by the President that the President 
is unable to make a certification under subsection (b). 
(d) USE OF FUNDS UPON ALTERNATIVE CERTIFICATION.—If the 
President 
makes 
a 
certification 
under 
subsection 
(c), 
the 
$60,000,000 specified in subsection (a)— 
(1) shall not be available for the purpose stated in section 
1202(a)(6); and 
(2) shall be available for activities in Ukraine, Kazakhstan, 
and Belarus— 
(A) for the elimination of strategic offensive weapons 
(in addition to the amount specified in section 1202(a)(1)); 
and 
(B) for nuclear infrastructure elimination (in addition 
to the amount specified in section 1202(a)(4)). 
SEC. 1209. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS 
DESTRUCTION FACILITY. 
(a) LIMITATION.—Of the amount appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative 
Threat Reduction programs that is available for planning and design 
of a chemical weapons destruction facility, not more than one-
half of such amount may be obligated or expended until the Presi-
dent certifies to Congress the following: 
(1) That the United States and Russia have completed 
a joint laboratory study to determine the feasibility of an appro-
priate technology for destruction of chemical weapons of Russia. 
(2) That Russia is making reasonable progress, with the 
assistance of the United States (if necessary), toward the 
completion of a comprehensive implementation plan for manag-
ing and funding the dismantlement and destruction of Russia's 
chemical weapons stockpile. 
(3) That the United States and Russia have made substan-
tial progress toward resolution, to the satisfaction of the United 
States, of outstanding compliance issues under the 1989 
Wyoming Memorandum 
of Understanding and the 
1990 
Bilateral Destruction Agreement. 
(b) DEFINITIONS.—In this section: 
(1) The term "1989 Wyoming Memorandum of Understand-
ing" means the Memorandum of Understanding between the 
Government of the United States of America and the Govern-
ment of the Union of Soviet Socialist Republics Regarding a 
PUBLIC LAW 104-10&—FEB. 10, 1996 
110 STAT. 473 
Bilateral Verification 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 Agreement" 
means the Agreement between the United States of America 
and the Union of Soviet Socialist Republics on destruction 
and nonproduction of chemical weapons and on measures to 
facilitate the multilateral convention on banning chemical 
weapons signed on June 1, 1990. 
TITLE XIII—MATTERS RELATING TO 
OTHER NATIONS 
Subtitle A—Peacekeeping Provisions 
SEC. 1301. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS 
FOR 
UNITED STATES SHARE OF COSTS OF UNITED 
NATIONS PEACEKEEPING ACTIVITIES. 
(a) IN GENERAL.—Chapter 20 of title 10, United States Code, 
is amended by inserting after section 404 the following new section: 
"§ 405. Use of Department of Defense funds for United States 
share of costs of United Nations peacekeeping 
activities: limitation 
"(a) PROHIBITION ON USE OF FUNDS.—Funds available to the 
Department of Defense may not be used to make a financial con-
tribution (directly or through another department or agency of 
the United States) to the United Nations— 
"(1) for the costs of a United Nations peacekeeping activity; 
or 
"(2) for any United States arrearage to the United Nations. 
"(b) APPLICATION OF PROHIBITION.—The prohibition in sub-
section (a) applies to voluntary contributions, as well as to contribu-
tions pursuant to assessment by the United Nations for the United 
States share of the costs of a peacekeeping activity.". 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of subchapter I of such chapter is amended by adding at 
the end the following new item: 
> 
"405. Use of Department of Defense funds for United States share of costs of United 
Nations peacekeeping activities: limitation.". 
Subtitle B—Humanitarian Assistance 
Programs 
SEC. 1311. OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID 
PROGRAMS. 
(a) COVERED PROGRAMS.—For purposes of section 301 and other 
provisions of this Act, programs of the Department of Defense 
designated as Overseas Humanitarian, Disaster, and Civic Aid 
(OHDACA) programs are the programs provided by sections 401, 
402, 404, 2547, and 2551 of title 10, United States Code. 
(b) GAO REPORT.—Not later than March 1, 1996, the Comptrol-
ler General of the United States shall provide to the congressional 
defense committees a report on— 
110 STAT. 474 
PUBLIC LAW 104-106—FEB. 10, 1996 
(1) existing funding mechanisms available to cover the 
costs associated with the Overseas Humanitarian, Disaster, 
and Civic Assistance activities through funds provided to the 
Department of State or the Agency for International Develop-
ment, and 
(2) if such mechanisms do not exist, actions necessary 
to institute such mechanisms, including any changes in existing 
law or regulations. 
SEC. 1312. HUMANITARIAN ASSISTANCE. 
Section 2551 of title 10, United States Code, is amended— 
(1) by striking out subsections (b) and (c); 
(2) by redesignating subsection (d) as subsection (b); 
(3) by striking out subsection (e) and inserting in lieu 
thereof the following: 
"(c) STATUS REPORTS.—(1) The Secretary of Defense shall sub-
mit to the congressional committees specified in subsection (f) an 
annual report on the provision of humanitarian assistance pursuant 
to this section for the prior fiscal year. The report shall be submitted 
each year at the time of the budget submission by the President 
for the next fiscal year. 
"(2) Each report required by paragraph (1) shall cover all provi-
sions of law that authorize appropriations for humanitarian assist-
ance to be available from the Department of Defense for the 
purposes of this section. 
"(3) Each report under this subsection shall set forth the follow-
ing information regarding activities during the previous fiscal year: 
"(A) The total amount of funds obligated for humanitarian 
relief under this section. 
"(B) The number of scheduled and completed transportation 
missions for purposes of providing humanitarian assistance 
under this section. 
"(C) A description of any transfer of excess nonlethal sup-
plies of the Department of Defense made available for humani-
tarian relief purposes under section 2547 of this title. The 
description shall include the date of the transfer, the entity 
to whom the transfer is made, and the quantity of items 
transferred."; 
(4) by redesignating subsection (f) as subsection (d) and 
in that subsection striking out "the Committees on" and all 
that follows through "House of Representatives of the" and 
inserting in lieu thereof "the congressional committees specified 
in subsection (f) and the Committees on Appropriations of the 
Senate and House of Representatives of the"; 
(5) by redesignating subsection (g) as subsection (e); and 
(6) by adding at the end the following new subsection: 
"(f) CONGRESSIONAL COMMITTEES.—The congressional commit-
tees referred to in subsections (c)(1) and (d) are the following: 
"(1) The Committee on Armed Services and the Committee 
on Foreign Relations of the Senate. 
"(2) The Committee on National Security and the Commit-
tee on International Relations of the House of Representatives.". 
\ 
SEC. 1313. LANDMINE CLEARANCE PROGRAM. 
(a) INCLUSION IN GENERAL HUMANITARIAN ASSISTANCE PRO-
GRAM.—Subsection (e) of section 401 of title 10, United States 
Code, is amended— 
PUBLIC LAW 104-10&—FEB. 10, 1996 
110 STAT. 475 
(1) by striking out "means—" and inserting in lieu thereof 
"means:"; 
(2) by revising the first word in each of paragraphs (1) 
through (4) so that the first letter of such word is upper 
case; 
(3) by striking out the semicolon at the end of paragraphs 
(1) and (2) and inserting in lieu thereof a period; 
(4) by striking out "; and" at the end of paragraph (3) 
and inserting in lieu thereof a period; and 
(5) by adding at the end the following new paragraph: 
"(5) Detection and clearance of landmines, including activi-
ties relating to the furnishing of education, training, and tech-
nical assistance with respect to the detection and clearance 
of landmines.". 
(b) LIMITATION ON LANDMINE ASSISTANCE BY MEMBERS OF 
ARMED FORCES.—Subsection (a) of such section is amended by 
adding at the end the following new paragraph: 
"(4) The Secretary of Defense shall ensure that no member 
of the Armed Forces, while providing assistance under this section 
that is described in subsection (e)(5)— 
"(A) engages in the physical detection, lifting, or destroying 
of landmines (unless the member does so for the concurrent 
purpose of supporting a United States military operation); or 
"(B) provides such assistance as part of a military operation 
that does not involve the Armed Forces.". 
(c) REPEAL.—Section 1413 of the National Defense Authoriza-
tion Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2913; 
10 U.S.C. 401 note) is repealed. 
Subtitle C—^Arms Exports and Military 
Assistance 
SEC. 1321. 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 Secretary of Defense 
shall establish a program under which the Secretary may issue 
guarantees assuring a lender against losses of principal or interest, 
or both principal and interest, arising out of the financing of the 
sale or long-term lease of defense articles, defense services, or 
design and construction services to a country referred to in sub-
section (b). 
"(b) COVERED COUNTRIES.—The authority under subsection (a) 
applies with respect to the following countries: 
110 STAT. 476 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(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 determined by 
the Secretary of State— 
"(A) has changed its form of national government from 
a nondemocratic form of government to a democratic form 
of government since October 1, 1989; or 
"(B) is in the process of changing its form of national 
government from a nondemocratic form of government to 
a democratic form of government. 
"(4) A noncommunist country that was a member nation 
of the Asia Pacific Economic Cooperation (APEC) as of October 
31, 1993. 
"(c) AUTHORITY SUBJECT TO PROVISIONS OF APPROPRIATIONS.— 
The Secretary may guarantee a loan under this subchapter only 
to such extent or in such amounts as may be provided in advance 
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 GUARANTEES.—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 cir-
cumstances in conjunction with the provision of guarantees for 
nondefense articles and services. 
"(b) LOSSES ARISING FROM FRAUD OR MISREPRESENTATION.— 
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 increment, and may 
not pay any amount, in respect of a guarantee issued under this 
subchapter, other than in accordance with the original payment 
terms of the loan. 
"§ 2540c. Fees charged and collected 
"(a) EXPOSURE FEES.—^The Secretary of Defense shall charge 
a fee (known as 'exposure fee') for each guarantee issued under 
this subchapter. 
"(b) AMOUNT OF EXPOSURE FEE.—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 sub-
section (a) with respect to a loan guarantee shall be fixed in an 
amount that is sufficient to meet potential liabilities of the United 
States under the loan guarantee. 
"(c) PAYMENT TERMS.—^The fee under subsection (a) 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 incrementally 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 477 
as portions of the loan are disbursed, the fee shall be paid incremen-
tally in proportion to the amount of the guarantee that is issued. 
"(d) ADMINISTRATIVP] FEES.—^The Secretary of Defense shall 
charge a fee for each guarantee issued under this subchapter to 
reflect the additional administrative costs of the Department of 
Defense that are directly attributable to the administration of the 
program under this subchapter. Such fees shall be credited to 
a special account in the Treasury. Amounts in the special account 
shall be available, to the extent and in amounts provided in appro-
priations Acts, for paying the costs of administrative expenses of 
the Department of Defense that are attributable to the loan guaran-
tee program under this subchapter. 
"§2540d. Definitions 
"In this subchapter: 
"(1) The terms 'defense article', 'defense services', and 
'design and construction services' have the meanings given 
those terms in section 47 of the Arms Export Control Act 
(22 U.S.C. 2794). 
"(2) The term 'cost', with respect to a loan guarantee, 
has the meaning given that term in section 502 of the Congres-
sional Budget and Impoundment Control 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.—Not later than two years after the date of the President, 
enactment of this Act, the President shall submit to Congress 
10 USC 2540 
a report on the loan guarantee program established pursuant to 
section 2540 of title 10, United States Code, as added by subsection 
(a). The report shall include— 
(1) an analysis of the costs and benefits of the loan guaran-
tee program; and 
(2) any recommendations for modification of the program 
that the President considers appropriate, including— 
(A) any recommended addition to the list of countries 
for which a guarantee may be issued under the program; 
and 
(B) any proposed legislation necessary to authorize 
a recommended modification. 
(c) FIRST YEAR COSTS.—The Secretary of Defense shall make 
available, from amounts appropriated to the Department of Defense 
for fiscal year 1996 for operations and maintenance, such amounts 
as may be necessary, not to exceed $500,000, for the expenses 
of the Department of Defense during fiscal year 1996 that are 
directly attributable to the administration of the defense export 
loan guarantee program under subchapter VI of chapter 148 of 
title 10, United States Code, as added by subsection (a). 
(d) 
REPLENISHMENT 
OF 
OPERATIONS 
AND 
MAINTENANCE 
ACCOUNTS FOR FIRST YEAR COSTS.—The Secretary of Defense shall, 
using funds in the special account referred to in section 2540c(d) 
of title 10, United States Code (as added by subsection (b)), replen-
ish operations and maintenance accounts for amounts expended 
from such accounts for expenses referred to in subsection (c). 
note. 
110 STAT. 478 
PUBLIC LAW 104-106—FEB. 10, 1996 
50USCapp. 
SEC. 1322. NATIONAL SECURITY IMPLICATIONS OF UNITED STATES 
2404 note. 
EXPORT CONTROL POLICY. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Export controls remain an important element of the 
national security policy of the United States. 
(2) It is in the national security interest that United States 
export control policy be effective in preventing the transfer, 
to potential adversaries or combatants of the United States, 
of technology that threatens the national security or defense 
of the United States. 
(3) It is in the national security interest that the United 
States monitor aggressively the export of militarily critical tech-
nology in order to prevent its diversion to potential adversaries 
or combatants of the United States. 
(4) The Department of Defense relies increasingly on 
commercial and dual-use technologies, products, and processes 
to support United States military capabilities and economic 
strength. 
(5) 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. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that— 
(1) the Secretary of Defense should evaluate license applica-
tions for the export of militarily critical commodities the export 
of which is controlled for national security reasons if those 
commodities are to be exported to certain countries of concern; 
(2) the Secretary of Defense should identify the dual-use 
items and technologies that are critical to the military capabili-
ties of the Armed Forces, including the military use made 
of such items and technologies; 
(3) upon identification by the Secretary of Defense of the 
dual-use items and technologies referred to in paragraph (2), 
the President should ensure effective export controls or use 
unilateral export 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— 
(A) pose a threat to the national security interests 
of the United States; and 
(B) are not members in good standing of bilateral or 
multilateral agreements to which the United States is a 
party on the use of such items and technologies; and 
(4) the President, upon recommendation of the Secretary 
of Defense, should ensure effective controls on the re-export 
by other countries of dual-use items and technologies that 
are critical to the military capabilities of the Armed Forces. 
President. 
(c) ANNUAL REPORT.—(1) Not later than December 1 of each 
year through 1999, the President shall submit to the committees 
specified in paragraph (4) 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 by the 
Secretary of Defense, the intelligence community, and other 
appropriate agencies to be a rogue nation or potential adversary 
or combatant of the United States. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 479 
(B) For each country so listed, a list of— 
(i) the categories of items that the United States cur-
rently prohibits for export to the country; 
(ii) the categories of items that may be exported from 
the United States with an individual license, and in such 
cases, any licensing conditions normally required and the 
policy grounds used for approvals and denials; and 
(iii) the categories of items that may be exported under 
a general license designated "G-DEST". 
(C) For each category of items listed under subparagraph 
(B)— 
(i) a statement whether a prohibition, control, or licens-
ing requirement on a category of items is imposed pursuant 
to an international multilateral agreement or is unilateral; 
(ii) a statement whether a prohibition, control, or 
licensing requirement on a category of items is imposed 
by the other members of an international agreement or 
is unilateral; 
(iii) when the answer under either clause (i) or clause 
(ii) is unilateral, a statement concerning the efforts being 
made to ensure that the prohibition, control, or licensing 
requirement is made multilateral; and 
(iv) a statement on what impact, if any, a unilateral 
prohibition is having, or would have, on preventing the 
rogue nation or potential adversary from attaining the 
items in question for military purposes. 
(D) A description of United States policy on sharing satellite 
imagery that has military significance 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 vehicle 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 Con-
trol Regime. 
(G) An assessment of the ongoing efforts made by potential 
participant countries in the Missile Technology Control Regime 
to meet the guidelines established by the Missile Technology 
Control Regime. 
(H) A discussion of the history of the space launch vehicle 
programs of other countries, including a discussion of the mili-
tary origins and purposes of such programs and the current 
level of military involvement in such programs. 
(3) The President shall submit the report in unclassified form, 
but may include a classified annex. 
(4) The committees referred to in paragraph (1) are the 
following: 
(A) The Committee on Armed Services and the Committee 
on Foreign Relations of the Senate. 
(B) The Committee on National Security and the Commit-
tee on International Relations of the House of Representatives. 
(5) For purposes of this subsection, the term "Missile Tech-
nology Control Regime" means the policy statement announced 
on April 16, 1987, between the United States, the United Kingdom, 
the Federal Republic of Germany, France, Italy, Canada, and Japan 
to restrict sensitive missile-relevant transfers based on the Missile 
Technology Control Regime Annex, and any amendment thereto. 
110 STAT. 480 
PUBLIC LAW 104-106—FEB. 10, 1996 
50 u s e app. 
2404 note. 
Notification. 
Notification. 
50 u s e app. 
2404 note. 
SEC. 1323. DEPARTMENT OF DEFENSE REVIEW OF EXPORT LICENSES 
FOR CERTAIN BIOLOGICAL PATHOGENS. 
(a) DEPARTMENT OF DEFENSE REVIEW.—^Any application to the 
Secretary of Commerce for a license for the export of a class 2, 
class 3, or class 4 biological pathogen to a country identified to 
the Secretary under subsection (c) as a country that is known 
or suspected to have a biological weapons program shall be referred 
to the Secretary of Defense for review. The Secretary of Defense 
shall notify the Secretary of Commerce within 15 days after receipt 
of an application under the preceding sentence whether the export 
of such biological pathogen pursuant to the license would be con-
trary to the national security interests of the United States. 
(b) DENIAL OF LICENSE IF CONTRARY TO NATIONAL SECURITY 
INTEREST.—^A license described in subsection (a) shall be denied 
by the Secretary of Commerce if it is determined that the export 
of such biological pathogen to that country would be contrary to 
the national security interests of the United States. 
(c) IDENTIFICATION OF COUNTRIES KNOWN OR SUSPECTED TO 
HAVE A PROGRAM TO DEVELOP OFFENSIVE BIOLOGICAL WEAPONS.— 
(1) The Secretary of Defense shall determine, for the purposes 
of this section, those countries that are known or suspected to 
have a program to develop offensive biological weapons. Upon mak-
ing such determination, the Secretary shall provide to the Secretary 
of Commerce a list of those countries. 
(2) The Secretary of Defense shall update the list under para-
graph (1) on a regular basis. Whenever a country is added to 
or deleted from such list, the Secretary shall notify the Secretary 
of Commerce. 
(3) Determination under this subsection of countries that are 
known or suspected to have a program to develop offensive biological 
weapons shall be made in consultation with the Secretary of State 
and the intelligence community. 
(d) DEFINITION.—For purposes of this section, the term "class 
2, class 3, or class 4 biological pathogen" means any biological 
pathogen that is characterized by the Centers for Disease Control 
as a class 2, class 3, or class 4 biological pathogen. 
SEC. 1324. A N N U A L 
REPORTS ON IMPROVING EXPORT CONTROL 
MECHANISMS AND ON MILITARY ASSISTANCE. 
(a) JOINT REPORTS BY SECRETARIES OF STATE AND COMMERCE.— 
Not later than April 1 of each of 1996 and 1997, the Secretary 
of State and the Secretary of Commerce shall submit to Congress 
a joint report, prepared in consultation with the Secretary of 
Defense, relating to United States export-control mechanisms. Each 
such report shall set forth measures to be taken to strengthen 
United States export-control mechanisms, including— 
(1) steps being taken by each Secretary (A) to share on 
a regular basis the export licensing watchlist of that Secretary's 
department with the other Secretary, and (B) to incorporate 
the export licensing watchlist data received from the other 
Secretary into the watchlist of that Secretary's department; 
(2) steps being taken by each Secretary to incorporate 
into the watchlist of that Secretary's department similar data 
from systems maintained by the Department of Defense and 
the United States Customs Service; and 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 481 
(3) a description of such further measures to be taken 
to strengthen United States export-control mechanisms as the 
Secretaries consider to be appropriate. 
(b) REPORTS BY INSPECTORS GENERAL.—(1) Not later than April 
1 of each of 1996 and 1997, the Inspector General of the Department 
of State and the Inspector General of the Department of Commerce 
shall each submit to Congress a report providing that official's 
evaluation of the effectiveness during the preceding year of the 
export licensing watchlist screening process of that official's depart-
ment. The reports shall be submitted in both a classified and 
unclassified version. 
(2) Each report of an Inspector General under paragraph (1) 
shall (with respect to that official's department)— 
(A) set forth the number of export licenses granted to 
parties on the export licensing watchlist; 
(B) set forth the number of end-use checks performed with 
respect to export licenses granted to parties on the export 
licensing watchlist the previous year; 
(C) assess the screening process used in granting an export 
license when an applicant is on the export licensing watchlist; 
and 
(D) assess the extent to which the export licensing watchlist 
contains all relevant information and parties required by stat-
ute or regulation. 
(c) ANNUAL MILITARY ASSISTANCE REPORT.—The Foreign Assist-
ance Act of 1961 is amended by inserting after section 654 (22 
U.S.C. 2414) the following new section: 
"SEC. 655. ANNUAL REPORT ON MILITARY ASSISTANCE, MILITARY 
22 USC 2415. 
EXPORTS, AND MILITARY IMPORTS. 
"(a) REPORT REQUIRED.—Not later than February 1 of each President. 
of 1996 and 1997, the President shall transmit to Congress a 
report concerning military assistance authorized or furnished for 
the fiscal year ending the previous September 30. 
"(b) INFORMATION RELATING TO MILITARY ASSISTANCE AND MILI-
TARY EXPORTS.—Each such report shall show the aggregate dollar 
value and quantity of defense articles (including excess defense 
articles) and defense services, and of military education and train-
ing, authorized or furnished by the United States to each foreign 
country and international organization. The report shall specify, 
by category, whether those articles and services, and that education 
and training, were furnished by grant under chapter 2 or chapter 
5 of part II of this Act or by sale under chapter 2 of the Arms 
Export Control Act or were authorized by commercial sale licensed 
under section 38 of the Arms Export Control Act. 
"(c) INFORMATION RELATING TO MILITARY IMPORTS.—Each such 
report shall also include the total amount of military items of 
non-United States manufacture that were imported into the United 
States during the fiscal year covered by the report. The report 
shall show the country of origin, the type of item being imported, 
and the total amount of items.". 
SEC. 1325. REPORT ON PERSONNEL REQUIREMENTS FOR CONTROL 
OF TRANSFER OF CERTAIN WEAPONS. 
Not later than 30 days after the date of the enactment of 
this Act, the Secretary of Defense and the Secretary of Energy 
shall submit to the committees of Congress referred to in subsection 
(c) of section 1154 of the National Defense Authorization Act for 
110 STAT. 482 
PUBLIC LAW 104-106—FEB. 10, 1996 
Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1761) the report 
required under subsection (a) of that section. The Secretary of 
Defense and the Secretary of Energy shall include with the report 
an explanation of the failure of such Secretaries to submit the 
report in accordance with such subsection (a) and with all other 
previous requirements for the submittal of the report. 
Subtitle D—Burdensharing and Other Co-
operative Activities Involving Allies and 
NATO 
SEC. 1331. ACCOUNTING FOR BURDENSHARING CONTRIBUTIONS. 
(a) AUTHORITY TO MANAGE CONTRIBUTIONS IN LOCAL CUR-
RENCY, ETC.—Subsection (b) of section 2350j of title 10, United 
States Code, is amended to read as follows: 
"(b) ACCOUNTING.—Contributions accepted under subsection (a) 
which are not related to security assistance may be accepted, man-
aged, and expended in dollars or in the currency of the host nation 
(or, in the case of a contribution from a regional organization, 
in the currency in which the contribution was provided). Any such 
contribution shall be placed in an account established for such 
purpose and shall remain available until expended for the purposes 
specified in subsection (c). The Secretary of Defense shall establish 
a separate account for such purpose for each country or regional 
organization from which such contributions are accepted under 
subsection (a).". 
(b) CONFORMING AMENDMENT.—Subsection (d) of such section 
is amended by striking out "credited under subsection (b) to an 
appropriation account of the Department of Defense" and inserting 
in lieu thereof "placed in an account established under subsection 
(b)". 
(c) 
TECHNICAL 
AMENDMENT.—Such 
section 
is 
further 
amended— 
(1) in subsection (e)(1), by striking out "a report to the 
congressional defense committees" and inserting in lieu thereof 
"to the congressional committees specified in subsection (g) 
a report"; and 
(2) by adding at the end the following new subsection: 
"(g) CONGRESSIONAL COMMITTEES.—^The congressional commit-
tees referred to in subsection (e)(1) are— 
"(1) the Committee on Armed Services and the Committee 
on Appropriations of the Senate; and 
"(2) the Committee on National Security and the Committee 
on Appropriations of the House of Representatives.". 
SEC. 1332. AUTHORITY TO ACCEPT CONTRIBUTIONS FOR EXPENSES 
OF RELOCATION WITHIN HOST NATION OF UNITED 
STATES ARMED FORCES OVERSEAS. 
(a) IN GENERAL.—(1) Subchapter II of chapter 138 of title 
10, United States Code, is amended by adding at the end the 
following new section: 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 483 
"§ 2350k. Relocation within host nation of elements of armed 
forces overseas 
"(a) AUTHORITY TO ACCEPT CONTRIBUTIONS.—The Secretary of 
Defense may accept contributions from any nation because of or 
in support of the relocation of elements of the armed forces from 
or to any location within that nation. Such contributions may be 
accepted in dollars or in the currency of the host nation. Any 
such contribution shall be placed in an account established for 
such purpose and shall remain available until expended for the 
purposes specified in subsection (b). The Secretary shall establish 
a separate account for such purpose for each country from which 
such contributions are accepted. 
"(b) USE OF CONTRIBUTIONS.—The Secretary may use a con-
tribution accepted under subsection (a) only for payment of costs 
incurred in connection with the relocation concerning which the 
contribution was made. Those costs include the following: 
"(1) Design and construction services, including develop-
ment and review of statements of work, master plans and 
designs, acquisition of construction, and supervision 
and 
administration of contracts relating thereto. 
"(2) Transportation and movement services, including pack-
ing, unpacking, storage, and transportation. 
"(3) Communications services, including installation and 
deinstallation of communications equipment, transmission of 
messages and data, and rental of transmission capability. 
"(4) Supply and administration, including acquisition of 
expendable office supplies, rental of office space, budgeting 
and accounting services, auditing services, secretarial services, 
and translation services. 
"(5) Personnel costs, including salary, allowances and over-
head of employees whether full-time or part-time, temporary 
or permanent (except for military personnel), and travel and 
temporary duty costs. 
"(6) All other clearly identifiable expenses directly related 
to relocation. 
"(c) 
METHOD 
OF 
CONTRIBUTION.—Contributions 
may 
be 
accepted in any of the following forms: 
"(1) Irrevocable letter of credit issued by a financial institu-
tion acceptable to the Treasurer of the United States. 
"(2) Drawing rights on a commercial bank account estab-
lished and funded by the host nation, which account is blocked 
such that funds deposited cannot be withdrawn except by or 
with the approval of the United States. 
"(3) Cash, which shall be deposited in a separate trust 
fund in the United States Treasury pending expenditure and 
which shall accrue interest in accordance with section 9702 
of title 31. 
"(d) ANNUAL REPORT TO CONGRESS.—Not later than 30 days 
after the end of each fiscal year, the Secretary shall submit to 
Congress a report specifying— 
"(1) the amount of the contributions accepted by the Sec-
retary during the preceding fiscal year under subsection (a) 
and the purposes for which the contributions were made; and 
"(2) the amount of the contributions expended by the Sec-
retary during the preceding fiscal year and the purposes for 
which the contributions were expended.". 
110 STAT. 484 
PUBLIC LAW 104-106—FEB. 10, 1996 
(2) The table of sections at the beginning of subchapter II 
of chapter 138 of such title is amended by adding at the end 
the following new item: 
"2350k. Relocation within host nation of elements of armed forces overseas.". 
10 use 2350k 
(b) EFFECTIVE DATE.—Section 2350k of title 10, United States 
note. 
Code, as added by subsection (a), shall take effect on the date 
of the enactment of this Act and shall apply to contributions for 
relocation of elements of the Armed Forces in or to any nation 
received on or after such date. 
SEC. 1333. REVISED GOAL FOR ALLIED SHARE OF COSTS FOR UNITED 
STATES INSTALLATIONS IN EUROPE. 
Section 1304(a) of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2890) is amended— 
(1) by inserting "(1)" after "so that"; and 
(2) by inserting before the period at the end the following: 
", and (2) by September 30, 1997, those nations have assumed 
42.5 percent of such costs". 
SEC. 1334. EXCLUSION OF CERTAIN FORCES FROM EUROPEAN END 
STRENGTH LIMITATION. 
(a) EXCLUSION OF MEMBERS PERFORMING DUTIES UNDER MILI-
TARY-TO-MILITARY CONTACT PROGRAM.—Paragraph (3) of section 
1002(c) of the Department of Defense Authorization Act, 1985 (22 
U.S.C. 1928 note) is amended to read as follows: 
"(3) For purposes of this subsection, the following members 
of the Armed Forces are excluded in calculating the end strength 
level of members of the Armed Forces of the United States assigned 
to permanent duty ashore in European member nations of NATO: 
"(A) Members assigned to permanent duty ashore in Ice-
land, Greenland, and the Azores. 
"(B) Members performing duties in Europe for more than 
179 days under a military-to-military contact program under 
section 168 of title 10, United States Code.". 
SEC. 1335. COOPERATIVE RESEARCH AND DEVELOPMENT AGREE-
MENTS WITH NATO ORGANIZATIONS. 
Section 2350b(e) of title 10, United States Code, is amended— 
(1) in paragraph (1), by inserting "or a NATO organization" 
after "a participant (other than the United States)"; and 
(2) in paragraph (2), by striking out "a cooperative project" 
and inserting in lieu thereof "such a cooperative project or 
a NATO organization". 
SEC. 1336. SUPPORT SERVICES FOR THE NAVY AT THE PORT OF HAIFA, 
ISRAEL. 
(a) SENSE OF CONGRESS.—It is the sense of Congress that 
the Secretary of Defense should promptly seek to undertake such 
actions as are necessary— 
(1) to ensure that suitable port services are available to 
the Navy at the Port of Haifa, Israel; and 
(2) to ensure the availability to the Navy of suitable services 
at that port in light of the continuing increase in commercial 
activities at the port. 
(b) REPORT.—Not later than 30 days after the date of the 
enactment of this Act, the Secretary of the Navy shall submit 
to Congress a report on the availablity of port services for the 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 485 
Navy in the eastern Mediterranean Sea region. The report shall 
specify— 
(1) the services required by the Navy when calling at 
the port of Haifa, Israel; and 
(2) the availability of those services at ports elsewhere 
in the region. 
Subtitle E—Other Matters 
SEC. 1341. PROfflBITION ON FINANCIAL 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 providing financial assistance to 
terrorist countries 
"(a) PROHIBITION.—Funds available to the Department of 
Defense may not be obligated or expended to provide financial 
assistance to— 
"(1) any country with respect to which the Secretary of 
State has made a determination under section 6(j)(l)(A) of 
the Export Administration Act of 1979 (50 App. 24050')); 
"(2) any country identified in the latest report submitted 
to Congress under section 140 of the Foreign Relations 
Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 
2656f), as providing significant support for international terror-
ism; or 
"(3) any other country that, as determined by the 
President— 
"(A) grants sanctuary from prosecution to any individ-
ual or group that has committed an act of international 
terrorism; or 
"(B) otherwise supports international terrorism. 
"(b) WAIVER.—(1) The President may waive the application 
of subsection (a) to a country if the President determines— 
"(A) that it is in the national security interests of the 
United States to do so; or 
"(B) that the waiver should be granted for humanitarian 
reasons. 
"(2) The President shall— 
"(A) notify the Committee on Armed Services and the 
Committee on Foreign Relations of the Senate and the Commit-
tee on National Security and the Committee on International 
Relations of the House of Representatives at least 15 days 
before the waiver takes effect; and 
"(B) publish a notice of the waiver in the Federal Register. 
"(c) DEFINITION.—In this section, the term 'international terror-
ism' has the meaning given that term in section 140(d) of the 
Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 
(22 U.S.C. 2656f(d)).". 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of subchapter I of such chapter is amended by adding at 
the end the following: 
"2249a. Prohibition on providing financial assistance to terrorist countries.". 
President. 
Notification. 
Federal Register, 
publication. 
110 STAT. 486 
PUBLIC LAW 104-106—FEB. 10, 1996 
18 u s e 3181 
SEC. 1342. JUDICIAL ASSISTANCE TO THE INTERNATIONAL TRIBUNAL 
note. 
FOR YUGOSLAVIA AND TO THE INTERNATIONAL TRIBU-
NAL FOR RWANDA. 
(a) SURRENDER OF PERSONS.— 
(1) APPLICATION OF UNITED STATES EXTRADITION LAWS.— 
Except as provided in paragraphs (2) and (3), the provisions 
of chapter 209 of title 18, United States Code, relating to 
the extradition of persons to a foreign country pursuant to 
a treaty or convention for extradition between the United States 
and a foreign government, shall apply in the same manner 
and extent to the surrender of persons, including United States 
citizens, to— 
(A) the International Tribunal for Yugoslavia, pursuant 
to the Agreement Between the United States and the Inter-
national Tribunal for Yugoslavia; and 
(B) the International Tribunal for Rwanda, pursuant 
to the Agreement Between the United States and the Inter-
national Tribunal for Rwanda. 
(2) EVIDENCE ON HEARINGS.—For purposes of applying sec-
tion 3190 of title 18, United States Code, in accordance with 
paragraph (1), the certification referred to in that section may 
be made by the principal diplomatic or consular officer of the 
United States resident in such foreign countries where the 
International Tribunal for Yugoslavia or the International 
Tribunal for Rwanda may be permanently or temporarily 
situated. 
(3) PAYMENT OF FEES AND COSTS.—(A) The provisions of 
the Agreement Between the United States and the Inter-
national Tribunal for Yugoslavia and of the Agreement Between 
the United States and the International Tribunal for Rwanda 
shall apply in lieu of the provisions of section 3195 of title 
18, United States Code, with respect to the pajrment of expenses 
arising from the surrender by the United States of a person 
to the International Tribunal for Yugoslavia or the Inter-
national Tribunal for Rwanda, respectively, or from any 
proceedings in the United States relating to such surrender. 
(B) The authority of subparagraph (A) may be exercised 
only to the extent and in the amounts provided in advance 
in appropriations Acts. 
(4) NONAPPLICABILITY OF THE FEDERAL RULES.—^The Fed-
eral Rules of Evidence and the Federal Rules of Criminal 
Procedure do not apply to proceedings for the surrender of 
persons to the International Tribunal for Yugoslavia or the 
International Tribunal for Rwanda. 
(b) ASSISTANCE TO FOREIGN AND INTERNATIONAL TRIBUNALS 
AND TO LITIGANTS BEFORE SUCH TRIBUNALS.—Section 1782(a) of 
title 28, United States Code, is amended by inserting in the first 
sentence after "foreign or international tribunal" the following: ", 
including 
criminal 
investigations 
conducted 
before 
formal 
accusation". 
(c) DEFINITIONS.—For purposes of this section: 
(1) INTERNATIONAL TRIBUNAL FOR YUGOSLAVIA.—The term 
"International Tribunal for Yugoslavia" means the Inter-
national Tribunal for the Prosecution of Persons Responsible 
for Serious Violations of International Humanitarian Law in 
the Territory of the Former Yugoslavia, as established by 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 487 
United Nations Security Council Resolution 827 of May 25, 
1993. 
(2) INTERNATIONAL TRIBUNAL FOR RWANDA.—The term 
"International Tribunal for Rwanda" means the International 
Tribunal for the Prosecution of Persons Responsible for Geno-
cide and Other Serious Violations of International Humani-
tarian Law Committed in the Territory of Rwanda and 
Rwandan Citizens Responsible for Genocide and Other Such 
Violations Committed in the Territory of Neighboring States, 
as established by United Nations Security Council Resolution 
955 of November 8, 1994. 
(3) AGREEMENT BETWEEN THE UNITED STATES AND THE 
INTERNATIONAL TRIBUNAL FOR YUGOSLAVIA.—The term "Agree-
ment Between the United States and the International Tribunal 
for Yugoslavia" means the Agreement on Surrender of Persons 
Between the Government of the United States and the Inter-
national Tribunal for the Prosecution of Persons Responsible 
for Serious Violations of International Law in the Territory 
of the Former Yugoslavia, signed at The Hague, October 5, 
1994. 
(4) AGREEMENT BETWEEN THE UNITED STATES AND THE 
INTERNATIONAL TRIBUNAL FOR RWANDA.—^The term "Agreement 
between the United States and the International Tribunal for 
Rwanda" means the Agreement on Surrender of Persons 
Between the Government of the United States and the Inter-
national Tribunal for the Prosecution of Persons Responsible 
for Genocide and Other Serious Violations of International 
Humanitarian Law Committed in the Territory of Rwanda and 
Rwandan Citizens Responsible for Genocide and Other Such 
Violations Committed in the Territory of Neighboring States, 
signed at The Hague, January 24, 1995. 
SEC. 1343. SEMIANNUAL REPORTS CONCERNING UNITED STATES-PEO-
PLE'S REPUBLIC OF CHINA JOINT DEFENSE CONVERSION 
COMMISSION. 
(a) REPORTS REQUIRED.—^The Secretary of Defense shall submit 
to Congress a semiannual report on the United States-People's 
Republic of China Joint Defense Conversion Commission. Each 
such report shall include the following: 
(1) A description of the extent to which the activities con-
ducted in, through, or as a result of the Commission could 
have directly or indirectly assisted, or may directly or indirectly 
assist, the military modernization efforts of the People's Repub-
lic of China. 
(2) A discussion of the activities and operations of the 
Commission, including— 
(A) United States funding; 
(B) a listing of participating United States officials; 
(C) specification 
of meeting dates and 
locations 
(prospective and retrospective); 
(D) summary of discussions; and 
(E) copies of any agreements reached. 
(3) A discussion of the relationship between the "defense 
conversion" activities of the People's Republic of China and 
its defense modernization efforts. 
(4) A discussion of the extent to which United States busi-
ness activities pursued, or proposed to be pursued, under the 
110 STAT. 488 
PUBLIC LAW 104-106—FEB. 10, 1996 
imprimatur of the Commission, or the importation of western 
technology in general, contributes to the modernization of Chi-
na's military industrial base, including any steps taken by 
the United States or by United States commercial entities 
to safeguard the technology or intellectual property rights asso-
ciated with any materials or information transferred. 
(5) An assessment of the benefits derived by the United 
States from its participation in the Commission, including 
whether or to what extent United States participation in the 
Commission has resulted or will result in the following: 
(A) Increased transparency in the current and projected 
military budget and doctrine of the People's Republic of 
China. 
(B) Improved behavior and cooperation by the People's 
Republic of China in the areas of missile and nuclear 
proliferation. 
(C) Increased transparency in the plans of the People's 
Republic of China's for nuclear and missile force moderniza-
tion and testing. 
(6) Efforts undertaken by the Secretary of Defense to— 
(A) establish a list of enterprises controlled by the 
People's Liberation Army, including those which have been 
successfully converted to produce products solely for civilian 
use; and 
(B) provide estimates of the total revenues of those 
enterprises. 
(7) A description of current or proposed mechanisms for 
improving the ability of the United States to track the flow 
of revenues from the enterprises specified on the list established 
under paragraph (6)(A). 
(b) SUBMITTAL OF REPORTS.—A report shall be submitted under 
subsection (a) not later than August 1 of each year with respect 
to the first six months of that year and shall be submitted not 
later than February 1 of each year with respect to the last six 
months of the preceding year. The first report under such subsection 
shall be submitted not less than 60 days after the date of the 
enactment of this Act and shall apply with respect to the six-
month period preceding the date of the enactment of this Act. 
(c) FINAL REPORT UPON TERMINATION OF COMMISSION.—^Upon 
the termination of the United States-People's Republic of China 
Joint Defense Conversion Commission, the Secretary of Defense 
shall submit a final report under this section covering the period 
from the end of the period covered by the last such report through 
the termination of the Commission, and subsection (a) shall cease 
to apply after the submission of such report. 
TITLE XIV—ARMS CONTROL MATTERS 
SEC. 1401. REVISION OF DEFINITION OF LANDMINE FOR PURPOSES 
OF LANDMINE EXPORT MORATORIUM. 
Section 1423(d) of the National Defense Authorization Act for 
Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1832) is amended— 
(1) by redesignating paragraphs (1), (2), and (3) as subpara-
graphs (A), (B), and (C), respectively; 
(2) in subparagraph (C), as so redesignated, by striking 
out "by remote control or"; 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 489 
(3) by inserting "(1)" before "For purposes of; and 
(4) by adding at the end the following new paragraph: 
"(2) The term does not include command detonated anti-
personnel land mines (such as the M18A1 'Claymore' mine).". 
SEC. 1402. REPORTS ON MORATORIUM ON USE BY ARMED FORCES 
OF ANTIPERSONNEL LANDMINES. 
Not later than April 30 of each of 1996, 1997, and 1998, 
the Chairman of the Joint Chiefs of Staff shall submit to the 
congressional defense committees a report on the projected effects 
of a moratorium on the defensive use of antipersonnel mines and 
antitank mines by the .Airmed Forces. The report shall include 
a discussion of the following matters: 
(1) The extent to which current doctrine and practices 
of the Armed Forces on the defensive use of antipersonnel 
mines and antitank mines adhere to applicable international 
law. 
(2) The effects that a moratorium would have on the defen-
sive use of the current United States inventory of remotely 
delivered, self-destructing antitank systems, antipersonnel 
mines, and antitank mines. 
(3) The reliability of the self-destructing antipersonnel 
mines and self-destructing antitank mines of the United States. 
(4) The cost of clearing the antipersonnel minefields cur-
rently protecting Naval Station Guantanamo Bay, Cuba, and 
other United States installations. 
(5) The cost of replacing antipersonnel mines in such mine-
fields with substitute systems such as the Claymore mine, 
and the level of protection that would be afforded by use of 
such a substitute. 
(6) The extent to which the defensive use of antipersonnel 
mines and antitank mines by the Armed Forces is a source 
of civilian casualties around the world, and the extent to which 
the United States, and the Department of Defense particularly, 
contributes to alleviating the illegal and indiscriminate use 
of such munitions. 
(7) The extent to which the threat to the security of United 
States forces during operations other than war and combat 
operations would increase as a result of such a moratorium. 
SEC. 1403. EXTENSION AND AMENDMENT OF COUNTER-PROLIFERA-
TION AUTHORITIES. 
(a) ONE-YEAR EXTENSION OF PROGRAM.—Section 1505 
of 
the 
Weapons of Mass Destruction Control Act of 1992 (title XV of 
Public Law 102-484; 22 U.S.C. 5859a) is amended— 
(1) in subsection (a), by striking out "during fiscal years 
1994 and 1995"; 
(2) in subsection (e)(1), by striking out "fiscal years 1994 
and 1995" and inserting in lieu thereof "a fiscal year during 
which the authority of the Secretary of Defense to provide 
assistance under this section is in effect"; and 
(3) by adding at the end the following new subsection: 
"(f) TERMINATION OF AUTHORITY.—The authority of the Sec-
retary of Defense to provide assistance under this section terminates 
at the close of fiscal year 1996.". 
(b) PROGRAM AUTHORITIES.—(1) Subsections (b)(2) and (d)(3) 
of such section are amended by striking out "the On-Site Inspection 
Agency" and inserting in lieu thereof "the Department of Defense". 
29-194 O - 96 - 17 : QL 3 Part 1 
110 STAT. 490 
PUBLIC LAW 104-106—FEB. 10, 1996 
(2) Subsection (c)(3) of such section is amended by striking 
out "will be counted" and all that follows and inserting in lieu 
thereof "will be counted as discretionary spending in the national 
defense budget function (function 050).". 
(c) AMOUNT OF ASSISTANCE.—Subsection (d) of such section 
is amended— 
(1) in paragraph (1)— 
(A) by striking out "for fiscal year 1994" the first 
place it appears and all that follows through the period 
at the end of the second sentence and inserting in lieu 
thereof "for any fiscal year shall be derived from amounts 
made available to the Department of Defense for that fiscal 
year."; and 
(B) by striking out "referred to in this paragraph"; 
and 
(2) in paragraph (3)— 
(A) by striking out "may not exceed" and all that 
follows through "1995"; and 
(B) by inserting before the period at the end the follow-
ing: ", may not exceed $25,000,000 for fiscal year 1994, 
$20,000,000 for fiscal year 1995, or $15,000,000 for fiscal 
year 1996". 
SEC. 1404. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF 
STRATEGIC NUCLEAR DELIVERY SYSTEMS. 
(a) SENSE OF CONGRESS.—It is the sense of Congress that, 
unless and until the START II Treaty enters into force, the Sec-
retary of Defense should not take any action to retire or dismantle, 
or to prepare to retire or dismantle, any of the following strategic 
nuclear delivery systems: 
(1) B-52H bomber aircraft. 
(2) Trident ballistic missile submarines. 
(3) Minuteman III intercontinental ballistic missiles. 
(4) Peacekeeper intercontinental ballistic missiles. 
(b) LIMITATION ON USE OF FUNDS.—^Funds available to the 
Department of Defense may not be obligated or expended during 
fiscal year 1996 for retiring or dismantling, or for preparing to 
retire or dismantle, any of the strategic nuclear delivery systems 
specified in subsection (a). 
SEC. 1405. CONGRESSIONAL FINDINGS AND SENSE OF CONGRESS 
CONCERNING TREATY VIOLATIONS. 
(a) 
REAFFIRMATION OF PRIOR 
FINDINGS 
CONCERNING THE 
KRASNOYARSK RADAR.—Congress, noting its previous findings with 
respect to the large phased-array radar of the Soviet Union known 
as the "Krasnoyarsk radar" stated in paragraphs (1) through (4) 
of section 902(a) of the National Defense Authorization Act for 
Fiscal Years 1988 and 1989 (Public Law 100-180; 101 Stat. 1135) 
(and reaffirmed 
in section 
1006(a) of the National 
Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
101-189; 103 Stat. 1543)), hereby reaffirms those findings as 
follows: 
(1) The 1972 Anti-Ballistic Missile Treaty prohibits each 
party from deploying ballistic missile early warning radars 
except at locations along the periphery of its national territory 
and oriented outward. 
(2) The 1972 Anti-Ballistic Missile Treaty prohibits each 
party from deploying an ABM system to defend its national 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 491 
territory and from providing a base for any such nationwide 
defense. 
(3) Large phased-array radars were recognized during nego-
tiation of the Anti-BalHstic Missile Treaty as the critical long 
lead-time element of a nationwide defense against ballistic 
missiles. 
(4) In 1983 the United States discovered the construction, 
in the interior of the Soviet Union near the town of 
Krasnoyarsk, of a large phased-array radar that has subse-
quently been judged to be for ballistic missile early warning 
and tracking. 
(b) 
FURTHER 
REFERENCE TO 1987 
CONGRESSIONAL 
STATE-
MENTS.—Congress further notes that in section 902 of the National 
Defense Authorization Act for Fiscal Years 1988 and 1989 (Public 
Law 100-180; 101 Stat. 1135) Congress also— 
(1) noted that the President had certified that 
the 
Krasnoyarsk radar was an unequivocal violation of the 1972 
Anti-Ballistic Missile Treaty; and 
(2) stated it to be the sense of the Congress that the 
Soviet Union was in violation of its legal obligation under 
that treaty. 
(c) 
FURTHER 
REFERENCE TO 1989 
CONGRESSIONAL 
STATE-
MENTS.—Congress further notes that in section 1006(b) of the 
National Defense Authorization Act for Fiscal Years 1990 and 1991 
(Public Law 101-189; 103 Stat. 1543) Congress also— 
(1) again noted that in 1987 the President declared that 
radar to be a clear violation of the 1972 Anti-Ballistic Missile 
Treaty and noted that on October 23, 1989, the Foreign Minister 
of the Soviet Union conceded that the Krasnoyarsk radar is 
a violation of the 1972 Anti-Ballistic Missile Treaty; and 
(2) stated it to be the sense of the Congress that the 
Soviet Union should dismantle the Krasnoyarsk radar expedi-
tiously and without conditions and that until such radar was 
completely dismantled it would remain a clear violation of 
the 1972 Anti-Ballistic Missile Treaty. 
(d) ADDITIONAL FINDINGS.—Congress also finds, with respect 
to the Krasnoyarsk radar, that retired Soviet General Y.V. 
Votintsev, Director of the Soviet National Air Defense Forces from 
1967 to 1985, has publicly stated— 
(1) that he was directed by the Chief of the Soviet General 
staff to locate the large phased-array radar at Krasnoyarsk 
despite the recognition by Soviet authorities that the location 
of such a radar at that location would be a clear violation 
of the 1972 Anti-Ballistic Missile Treaty; and 
(2) that Marshal D.F. Ustinov, Soviet Minister of Defense, 
threatened to relieve from duty any Soviet officer who continued 
to object to the construction of a large-phased array radar 
at Krasnoyarsk. 
(e) SENSE OF CONGRESS CONCERNING SOVIET TREATY VIOLA-
TIONS.—It is the sense of Congress that the government of the 
Soviet Union intentionally violated its legal obligations under the 
1972 Anti-Ballistic Missile Treaty in order to advance its national 
security interests. 
(f) SENSE OF CONGRESS CONCERNING COMPLIANCE BY RUSSL^ 
WITH ARMS CONTROL OBLIGATIONS.—In light of subsections (a) 
through (e), it is the sense of Congress that the United States 
should remain vigilant in ensuring compliance by Russia with its 
Y.V. Votintsev. 
D.F. Ustinov. 
110 STAT. 492 
PUBLIC LAW 104-106—FEB. 10, 1996 
arms control obligations and should, when pursuing future arms 
control agreements with Russia, bear in mind violations of arms 
control obligations by the Soviet Union. 
SEC. 1406. SENSE OF CONGRESS ON RATIFICATION OF CHEMICAL 
WEAPONS CONVENTION AND START II TREATY. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Proliferation of chemical or nuclear weapons materials 
poses a danger to United States national security, and the 
threat or use of such materials by terrorists would directly 
threaten United States citizens at home and abroad. 
(2) Events such as the March 1995 terrorist release of 
a chemical nerve agent in the Tokyo subway, the threatened 
use of chemical weapons during the 1991 Persian Gulf War, 
and the widespread use of chemical weapons during the Iran-
Iraq War of the 1980's are all potent reminders of the menace 
posed by chemical weapons, of the fact that the threat of 
chemical weapons is not sufficiently addressed, and of the need 
to outlaw the development, production, and possession of chemi-
cal weapons. 
George Bush. 
(3) The Chemical Weapons Convention negotiated and 
signed by President Bush would make it more difficult for 
would-be proliferators, including terrorists, to acquire or use 
chemical weapons, if ratified and fully implemented, as signed, 
by all signatories. 
John 
(4) tJnited States military authorities, including Chairman 
ShaUkashvUi. 
of the Joint Chiefs of Staff General John Shalikashvili, have 
stated that United States military forces will deter and respond 
to chemical weapons threats with a robust chemical defense 
and an overwhelming superior conventional response, as dem-
onstrated in the Persian Gulf War, and have testified in support 
of the ratification of the Chemical Weapons Convention. 
(5) The United States intelligence community has testified 
that the Convention will provide new and important sources 
of information, through regular data exchanges and routine 
and challenge inspections, to improve the ability of the United 
States to assess the chemical weapons status in countries of 
concern. 
(6) The Convention has not entered into force for lack 
of the requisite number of ratifications. 
(7) Russia has signed the Convention, but has not yet 
ratified it. 
(8) There have been reports by Russian sources of continued 
Russian production and testing of chemical weapons, including 
a statement by a spokesman of the Russian Ministry of Defense 
on December 5, 1994, that "We cannot say that all chemical 
weapons production and testing has stopped altogether.". 
(9) The Convention will impose a legally binding obligation 
on Russia and other nations that possess chemical weapons 
and that ratify the Convention to cease offensive chemical 
weapons activities and to destroy their chemical weapons stock-
piles and production facilities. 
(10) The United States must be prepared to exercise fully 
its rights under the Convention, including the request of chal-
lenge inspections when warranted, and to exercise leadership 
in pursuing punitive measures against violators of the Conven-
tion, when warranted. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 493 
(11) The United States should strongly encourage full 
implementation at the earliest possible date of the terms and 
conditions of the United States-Russia bilateral chemical weap-
ons destruction agreement signed in 1990. 
(12) The START II Treaty negotiated and signed by Presi-
dent Bush would help reduce the danger 
of potential 
proliferators, including terrorists, acquiring nuclear warheads 
and materials, and would contribute to United States-Russian 
bilateral efforts to secure and dismantle nuclear warheads, 
if ratified and fully implemented as signed by both parties. 
(13) It is in the national security interest of the United 
States to take effective steps to make it more difficult for 
proliferators or would-be terrorists to obtain chemical or nuclear 
materials for use in weapons. 
(14) The President has urged prompt Senate action on, 
and advice and consent to ratification of, the START II Treaty 
and the Chemical Weapons Convention. 
(15) The Chairman of the Joint Chiefs of Staff has testified 
to Congress that ratification and full implementation of both 
treaties by all parties is in the United States national interest 
and has strongly urged prompt Senate advice and consent 
to their ratification. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that 
the United States, Russia, and all other parties to the START 
II Treaty and the Chemical Weapons Convention should promptly 
ratify and fully implement, as negotiated, both treaties. 
SEC. 1407. IMPLEMENTATION OF ARMS CONTROL AGREEMENTS. 
(a) FUNDING.—Of the amounts appropriated pursuant to 
authorizations in sections 102, 103, 104, 201, and 301, the Secretary 
of Defense may use an amount not to exceed $239,941,000 for 
implementing arms control agreements to which the United States 
is a party. 
(b) LIMITATION.—(1) Funds made available pursuant to sub-
section (a) for the costs of implementing an arms control agreement 
may not (except as provided in paragraph (2)) be used to reimburse 
expenses incurred by any other party to the agreement for which 
(without 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 agree-
ment. 
(2) The limitation in paragraph (1) does not apply to a use 
of funds to carry out an arms control expenses reimbursement 
policy of the United States described in subsection (c). 
(c) COVERED ARMS CONTROL EXPENSES REIMBURSEMENT POLI-
CIES.—Subsection (b)(2) applies to a policy of the United States 
to reimburse expenses incurred by another party to an arms control 
agreement if— 
(1) the policy does not modify any obligation imposed by 
the arms control agreement; 
(2) the President— 
(A) issued or approved the policy before the date of 
the enactment of this Act; or 
(B) entered into an agreement on the policy with the 
government of another country or approved an agreement 
110 STAT. 494 
PUBLIC LAW 104-106—FEB. 10, 1996 
on the policy entered into by an official of the United 
States and the government of another country; and 
(3) the President has notified the designated congressional 
committees 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. 
(d) DEFINITIONS.—For the purposes of this section: 
(1) The term "arms control agreement" means an arms 
control treaty or other form of international arms control agree-
ment. 
(2) The term "executive agreement" means an international 
agreement entered into by the President that is not authorized 
by law or entered into as a Treaty to which the Senate has 
given its advice and consent to ratification. 
(3) The term "designated congressional committees" means 
the following: 
(A) The Committee on Foreign Relations, the Commit-
tee on Armed Services, and the Committee on Appropria-
tions of the Senate. 
(B) The Committee on International Relations, the 
Committee on National Security, and the Committee on 
Appropriations of the House of Representatives. 
SEC. 1408. IRAN AND IRAQ ARMS NONPROLIFERATION. 
(a) 
SANCTIONS AGAINST 
TRANSFERS OF PERSONS.—Section 
1604(a) of the Iran-Iraq Arms Non-Proliferation Act of 1992 (title 
XVI of Pubhc Law 102-484; 50 U.S.C. 1701 note) is amended 
by inserting "to acquire chemical, biological, or nuclear weapons 
or" before "to acquire". 
(b) SANCTIONS AGAINST TRANSFERS OF FOREIGN COUNTRIES.— 
50 use 1701 
Section 1605(a) of such Act is amended by inserting "to acquire 
note. 
chemical, biological, or nuclear weapons or" before "to acquire". 
(c) CLARIFICATION OF UNITED STATES ASSISTANCE.—Subpara-
50 use 1701 
graph (A) of section 1608(7) of such Act is amended to read as 
note. 
follows: 
"(A) any assistance under the Foreign Assistance Act 
of 1961 (22 U.S.C. 2151 et seq.), other than urgent humani-
tarian assistance or medicine;". 
(d) NOTIFICATION OF CERTAIN WAIVERS UNDER M T C R PROCE-
DURES.—Section 73(eX2) of the Arms Export Control Act (22 U.S.C. 
2797b(e)(2)) is amended— 
(1) by striking out "the Congress" and inserting in lieu 
thereof "the Committee on Armed Services and the Committee 
on Foreign Relations of the Senate and the Committee on 
National Security and the Committee on International Rela-
tions of the House of Representatives"; and 
(2) by striking out "20 working days" and inserting in 
lieu thereof "45 working days". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 495 
TITLE XV—TECHNICAL AND CLERICAL 
AMENDMENTS 
SEC. 1501. AMENDMENTS RELATED TO RESERVE OFFICER PERSON-
NEL MANAGEMENT ACT. 
(a) PUBLIC 
LAW 103-337.—The Reserve Officer Personnel 
Management Act (title XVI of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337)) is amended as 
follows: 
(1) Section 1624 (108 Stat. 2961) is amended— 
10 USC 620. 
(A) by striking out "641" and all that follows through 
"(2)" and inserting in lieu thereof "620 is amended"; and 
(B) by redesignating as subsection (d) the subsection 
added by the amendment made by that section. 
(2) Section 1625 (108 Stat. 2962) is amended by striking 10USC12320. 
out "Section 689" and inserting in lieu thereof "Section 12320". 
(3) Section 1626(1) (108 Stat. 2962) is amended by striking 
10 USC 741. 
out "(W-5)" in the second quoted matter therein and inserting 
in lieu thereof", W-5,". 
(4) Section 1627 (108 Stat. 2962) is amended by striking 
10 U
S
C 12645. 
out "Section 1005(b)" and inserting in lieu thereof "Section 
12645(b)". 
(5) Section 1631 (108 Stat. 2964) is amended— 
(A) in subsection (a), by striking out "Section 510" 10USC12102. 
and inserting in lieu thereof "Section 12102"; and 
(B) in subsection (b), by striking out "Section 591" 10 USC 12201. 
and inserting in lieu thereof "Section 12201". 
(6) Section 1632 (108 Stat. 2965) is amended by striking 
10 USC 12203. 
out "Section 593(a)" and inserting in lieu thereof "Section 
12203(a)". 
(7) Section 1635(a) (108 Stat. 2968) is amended by striking 
10 USC 3853 
out "section 1291" and inserting in lieu thereof "section note. 
1691(b)". 
(8) Section 1671 (108 Stat. 3013) is amended— 
(A) in subsection (b)(3), by striking out "512, and 517" 
and inserting in lieu thereof "and 512"; and 
(B) in subsection (c)(2), by striking out the comma 
10 USC 113. 
after "861" in the first quoted matter therein. 
(9) Section 1684(b) (108 Stat. 3024) is amended by striking 
10 USC 14310 
out "section 14110(d)" and inserting in lieu thereof "section "ote-
14111(c)". 
(b) SUBTITLE E OF TITLE 10.—Subtitle E of title 10, United 
States Code, is amended as follows: 
(1) The tables of chapters preceding part I and at the 
beginning of part IV are amended by striking out "Repayments" 
in the item relating to chapter 1609 and inserting in lieu 
thereof "Repayment Programs". 
(2)(A) The heading for section 10103 is amended to read 
as follows: 
*
*
§ 10103. Basic policy for order into Federal service". 
(B) The item relating to section 10103 in the table of 
sections at the beginning of chapter 1003 is amended to read 
as follows: 
"10103. Basic policy for order into Federal service.". 
110 STAT. 496 
PUBLIC LAW 104-106—FEB. 10, 1996 
(3) The table of sections at the beginning of chapter 1005 
is amended by striking out the third word in the item relating 
to section 10142. 
(4) The table of sections at the beginning of chapter 1007 
is amended— 
(A) by striking out the third word in the item relating 
to section 10205; and 
(B) by capitalizing the initial letter of the sixth word 
in the item relating to section 10211. 
(5) The table of sections at the beginning of chapter 1011 
is amended by inserting "Sec." at the top of the column of 
section numbers. 
(6) Section 10507 is amended— 
(A) by striking out "section 124402(b)" and inserting 
in lieu thereof "section 12402(b)"; and 
(B) by striking out "Air Forces" and inserting in lieu 
thereof "Air Force". 
(7)(A) Section 10508 is repealed. 
(B) The table of sections at the beginning of chapter 1011 
is amended by striking out the item relating to section 10508. 
(8) Section 10542 is amended by striking out subsection 
(d). 
(9) Section 12004(a) is amended by striking out "active-
status" and inserting in lieu thereof "active status". 
(10) Section 12012 is amended by inserting "the" in the 
section heading before the penultimate word. 
(11)(A) The heading for section 12201 is amended to read 
as follows: 
"§ 12201. Reserve officers: qualifications for appointment''. 
(B) The item relating to that section in the table of sections 
at the beginning of chapter 1205 is amended to read as follows: 
"12201. Reserve officers: qualifications for appointment.". 
(12)(A) The heading for section 12209 is amended to read 
as follows: 
"§ 12209. Of^cer candidates: enlisted Reserves". 
(B) The heading for section 12210 is amended to read 
as follows: 
"§ 12210. Attending Physician to the Congress: reserve grade 
ivhile so serving". 
(13)(A) The headings for sections 12211, 12212, 12213, 
and 12214 are amended by inserting "the" after "National 
Guard o f 
(B) The table of sections at the beginning of chapter 1205 
is amended by inserting "the" in the items relating to sections 
12211, 12212, 12213, and 12214 after "National Guard of. 
(14) Section 12213(a) is amended by striking out "section 
593" and inserting in lieu thereof "section 12203". 
(15) The table of sections at the beginning of chapter 1207 
is amended by striking out "promotions" in the item relating 
to section 12243 and inserting in lieu thereof "promotion". 
(16) The table of sections at the beginning of chapter 1209 
is amended— 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 497 
(A) in the item relating to section 12304, by striking 
out the colon and inserting in lieu thereof a semicolon; 
and 
(B) in the item relating to section 12308, by striking 
out the second, third, and fourth words. 
(17) Section 12307 is amended by striking out "Ready 
Reserve" in the second sentence and inserting in lieu thereof 
"Retired Reserve". 
(18)(A) The table of sections at the beginning of chapter 
1211 is amended by inserting "the" in the items relating to 
sections 12401, 12402, 12403, and 12404 after "Army and Air 
National Guard of. 
(B) The headings for sections 12402, 12403, and 12404 
are amended by inserting "the" after "Army and Air National 
Guard o f 
(19) Section 12407(b) is amended— 
(A) by striking out "of those jurisdictions" and inserting 
in lieu thereof "State"; and 
(B) by striking out "jurisdictions" and inserting in lieu 
thereof "States". 
(20) Section 12731(f) is amended by striking out "the date 
of the enactment of this subsection" and inserting in lieu thereof 
"October 5, 1994,". 
(21) Section 12731a(c)(3) is amended by inserting a comma 
after "Defense Conversion". 
(22) Section 14003 is amended by inserting "lists" in the 
section heading immediately before the colon. 
(23) The table of sections at the beginning of chapter 1403 
is amended by striking out "selection board" in the item relating 
to section 14105 and inserting in lieu thereof "promotion board". 
(24) The table of sections at the beginning of chapter 1405 
is amended— 
(A) in the item relating to section 14307, by striking 
out "Numbers" and inserting in lieu thereof "Number"; 
(B) in the item relating to section 14309, by striking 
out the colon and inserting in lieu thereof a semicolon; 
and 
(C) in the item relating to section 14314, by capitalizing 
the initial letter of the antepenultimate word. 
(25) Section 14315(a) is amended by striking out "a Reserve 
officer" and inserting in lieu thereof "a reserve officer". 
(26) Section 14317(e) is amended— 
(A) by inserting "OFFICERS ORDERED TO ACTIVE DUTY 
IN TIME OF WAR OR NATIONAL EMERGENCY.—" after "(e)"; 
and 
(B) by striking out "section 10213 or 644" and inserting 
in lieu thereof "section 123 or 10213". 
(27) The table of sections at the beginning of chapter 1407 
is amended— 
(A) in the item relating to section 14506, by inserting 
"reserve" after "Marine Corps and"; and 
(B) in the item relating to section 14507, by inserting 
"reserve" after "Removal from the"; and 
(C) in the item relating to section 14509, by inserting 
"in grades" after "reserve officers". 
110 STAT. 498 
PUBLIC LAW 104-106—FEB. 10, 1996 
(28) Section 14501(a) is amended by inserting "OFFICERS 
BELOW THE GRADE OF COLONEL OR NAVY CAPTAIN.—" after 
"(a)". 
(29) The heading for section 14506 is amended by inserting 
a comma after "Air Force". 
(30) Section 14508 is amended by striking out "this" after 
"from an active status under" in subsections (c) and (d). 
(31) Section 14515 is amended by striking out "inactive 
status" and inserting in lieu thereof "inactive-status". 
(32) Section 14903(b) is amended by striking out "chapter" 
and inserting in heu thereof "title". 
(33) The table of sections at the beginning of chapter 1606 
is amended in the item relating to section 16133 by striking 
out "limitations" and inserting in lieu thereof "limitation". 
(34) Section 16132(c) is amended by striking out "section" 
and inserting in lieu thereof "sections". 
(35) Section 16135(b)(1)(A) is amended by striking out "sec-
tion 2131(a)" and inserting in lieu thereof "section 16131(a)". 
(36) Section 18236(b)(1) is amended by striking out "section 
2233(e)" and inserting in lieu thereof "section 18233(e)". 
(37) Section 18237 is amended— 
(A) in 
subsection 
(a), by 
striking 
out 
"section 
2233(a)(1)" 
and 
inserting 
in 
lieu 
thereof 
"section 
18233(a)(1)"; and 
(B) in subsection (b), by striking out "section 2233(a)" 
and inserting in lieu thereof "section 18233(a)". 
Effective date. 
(c) OTHER PROVISIONS OF TiTLE 10.—Effective as of December 
10 use 101 note. 
1
^ 1994 (except as otherwise expressly provided), and as if included 
as amendments made by the Reserve Officer Personnel Manage-
ment Act (title XVI of Public Law 103-360) as originally enacted, 
title 10, United States Code, is amended as follows: 
(1) Section 101(d)(6)(B)(i) is amended by striking out "sec-
tion 175" and inserting in lieu thereof "section 10301". 
(2) Section 114(b) is amended by striking out "chapter 
133" and inserting in lieu thereof "chapter 1803". 
(3) Section 115(d) is amended— 
(A) in paragraph (1), by striking out "section 673" 
and inserting in lieu thereof "section 12302"; 
(B) in paragraph (2), by striking out "section 673b" 
and inserting in lieu thereof "section 12304"; and 
(C) in paragraph (3), by striking out "section 3500 
or 8500" and inserting in lieu thereof "section 12406". 
(4) Section 123(a) is amended— 
(A) by striking out "281, 592, 1002, 1005, 1006, 1007, 
1374, 3217, 3218, 3219, 3220, 3352(a) (last sentence),", 
"5414, 5457, 5458, 5506,", and "8217, 8218, 8219,"; and 
(B) by striking out "and 8855" and inserting in lieu 
thereof "8855, 10214, 12003, 12004, 12005, 12007, 12202, 
12213(a) (second sentence), 12642, 12645, 12646, 12647, 
12771, 12772, and 12773". 
(5) Section 582(1) is amended by striking out "section 
672(d)" in subparagraph (B) and "section 673b" in subparagraph 
(D) and inserting in lieu thereof "section 12301(d)" and "section 
12304", respectively. 
(6) Section 641(1)(B) is amended by striking out "10501" 
and inserting in lieu thereof "10502, 10505, 10506(a), 10506(b), 
10507". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 499 
(7) The table of sections at the beginning of chapter 39 
is amended by striking out the items relating to sections 687 
and 690. 
(8) Sections 1053(a)(1) and 1064 are amended by striking 
out "chapter 67" and inserting in lieu thereof "chapter 1223". 
(9) Section 1063(a)(1) is amended by striking out "section 
1332(a)(2)" and inserting in lieu thereof "section 12732(a)(2)". 
(10) Section 1074b(bX2) is amended by striking out "section 
673c" and inserting in lieu thereof "section 12305". 
(11) Section 1076(b)(2)(A) is amended by striking out 
"before the effective date of the Reserve Officer Personnel 
Management Act" and inserting in lieu thereof "before Decem-
ber 1, 1994". 
(12) Section 1176(b) is amended by striking out "section 
1332" in the matter preceding paragraph (1) and in paragraphs 
(1) and (2) and inserting in lieu thereof "section 12732". 
(13) Section 1208(b) is amended by striking out "section 
1333" and inserting in lieu thereof "section 12733". 
(14) Section 1209 is amended by striking out "section 1332", 
"section 1335", and "chapter 71" and inserting in lieu thereof 
"section 12732", "section 12735", and "section 12739", respec-
tively. 
(15) Section 1407 is amended— 
(A) in subsection (c)(1) and (d)(1), by striking out "sec-
tion 1331" and inserting in lieu thereof "section 12731"; 
and 
(B) in the heading for paragraph (1) of subsection 
(d), by striking out "CHAPTER 67" and inserting in lieu 
thereof "CHAPTER 1223". 
(16) Section 1408(a)(5) is amended by striking out "section 
1331" and inserting in lieu thereof "section 12731". 
(17) Section 1431(a)(1) is amended by striking out "section 
1376(a)" and inserting in lieu thereof "section 12774(a)". 
(18) Section 1463(a)(2) is amended by striking out "chapter 
67" and inserting in lieu thereof "chapter 1223". 
(19) Section 1482(f)(2) is amended by inserting "section" 
before "12731 of this title". 
(20) The table of sections at the beginning of chapter 533 
is amended by striking out the item relating to section 5454. 
(21) Section 2006(b)(1) is amended by striking out "chapter 
106 of this title" and inserting in lieu thereof "chapter 1606 
of this title". 
(22) Section 2121(c) is amended by striking out "section Effective date. 
3353, 5600, or 8353" and inserting in lieu thereof "section 
12207", effective on the effective date specified in section 
1691(b)( 1) of PubHc Law 103-337. 
(23) Section 2130a(b)(3) is amended by striking out "section 
591" and inserting in lieu thereof "section 12201". 
(24) The table of sections at the beginning of chapter 337 
is amended by striking out the items relating to section 3351 
and 3352. 
(25) Sections 3850, 6389(c), 6391(c), and 8850 are amended 
by striking out "section 1332" and inserting in lieu thereof 
"section 12732". 
(26) Section 5600 is repealed, effective on the effective 
Effective date. 
date specified in section 1691(b)(1) of Public Law 103-337. 
110 STAT. 500 
PUBLIC LAW 104-106—FEB. 10, 1996 
10 u s e 2466 
note. 
10 u s e 12321 
note. 
106 Stat. 2714. 
106 Stat. 2714. 
106 Stat. 2717. 
(27) Section 5892 is amended by striking out "section 5457 
or section 5458" and inserting in lieu thereof "section 12004 
or section 12005". 
(28) Section 6410(a) is amended by striking out "section 
1005" and inserting in lieu thereof "section 12645". 
(29) The table of sections at the beginning of chapter 837 
is amended by striking out the items relating to section 8351 
and 8352. 
(30) Section 8360(b) is amended by striking out "section 
1002" and inserting in lieu thereof "section 12642". 
(31) Section 8380 is amended by striking out "section 524" 
in subsections (a) and (b) and inserting in lieu thereof "section 
12011". 
(32) Sections 8819(a), 8846(a), and 8846(b) are amended 
by striking out "sections 1005 and 1006" and inserting in lieu 
thereof "sections 12645 and 12646". 
(33) Section 8819 is amended by striking out "section 1005" 
and "section 1006" and inserting in lieu thereof "section 12645" 
and "section 12646", respectively. 
(d) CROSS REFERENCES IN OTHER DEFENSE LAWS.— 
(1) Section 337(b) of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2717) 
is amended by inserting before the period at the end the follow-
ing: "or who after November 30, 1994, transferred to the Retired 
Reserve under section 10154(2) of title 10, United States Code, 
without having completed the years of service required under 
section 12731(a)(2) of such title for eligibility for retired pay 
under chapter 1223 of such title". 
(2) Section 525 of the National Defense Authorization Act 
for Fiscal Years 1992 and 1993 (Public Law 102-190, 105 
Stat. 1363) is amended by striking out "section 690" and insert-
ing in lieu thereof "section 12321". 
(3) Subtitle B of title XLIV of the National Defense 
Authorization Act for Fiscal Year 1993 (PubHc Law 102-484; 
10 U.S.C. 12681 note) is amended— 
(A) in section 4415, by striking out "section 1331a" 
and inserting in lieu thereof "section 12731a"; 
(B) in subsection 4416— 
(i) in subsection (a), by striking out "section 1331" 
and inserting in lieu thereof "section 12731"; 
(ii) in subsection (b)— 
(I) by inserting "or section 12732" in para-
graph (1) after "under that section"; and 
(II) by inserting "or 12731(a)" in paragraph 
(2) after "section 1331(a)"; 
(iii) in subsection (e)(2), by striking out "section 
1332" and inserting in Heu thereof "section 12732"; 
and 
(iv) in subsection (g), by striking out "section 
1331a" and inserting in lieu thereof "section 12731a"; 
and 
(C) in section 4418— 
(i) in subsection (a), by striking out "section 1332" 
and inserting in lieu thereof "section 12732"; and 
(ii) in subsection (b)(1)(A), by striking out "section 
1333" and inserting in lieu thereof "section 12733". 
(4) Title 37, United States Code, is amended— 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 501 
(A) in section 302f(b), by striking out "section 673c 
of title 10" in paragraphs (2) and (3)(A) and inserting 
in lieu thereof "section 12305 of title 10"; and 
(B) in section 433(a), by striking out "section 687 of 
title 10" and inserting in lieu thereof "section 12319 of 
title 10". 
(e) CROSS REFERENCES IN OTHER LAWS.— 
(1) Title 14, United States Code, is amended^— 
(A) in section 705(f), by striking out "600 of title 10" 
and inserting in lieu thereof "12209 of title 10"; and 
(B) in section 741(c), by striking out "section 1006 
of title 10" and inserting in lieu thereof "section 12646 
of title 10". 
(2) Title 38, United States Code, is amended— 
(A) in section 3011(d)(3), by striking out "section 672, 
673, 673b, 674, or 675 of title 10" and inserting in lieu 
thereof "section 12301, 12302, 12304, 12306, or 12307 of 
title 10"; 
(B) in sections 3012(b)(l)(B)(iii) and 3701(b)(5)(B), by 
striking out "section 268(b) of title 10" and inserting in 
heu thereof "section 10143(a) of title 10"; 
(C) in section 3501(a)(3)(C), by striking out "section 
511(d) of title 10" and inserting in lieu thereof "section 
12103(d) oftitle 10"; and 
(D) in section 4211(4)(C), by striking out "section 
672(a), (d), or (g), 673, or 673b of title 10" and inserting 
in lieu thereof "section 12301(a), (d), or (g), 12302, or 12304 
oftitle 10". 
(3) Section 702(a)(1) of the Soldiers' and Sailors' Civil Relief 
Act of 1940 (50 U.S.C. App. 592(a)(1)) is amended— 
(A) by striking out "section 672 (a) or (g), 673, 673b, 
674, 675, or 688 of title 10" and inserting in lieu thereof 
"section 688, 12301(a), 12301(g), 12302, 12304, 12306, or 
12307 oftitle 10"; and 
(B) by striking out "section 672(d) of such title" and 
inserting in lieu thereof "section 12301(d) of such title". 
(4) Section 463A of the Higher Education Act of 1965 
(20 U.S.C. 1087CC-1) is amended in subsection (a)(10) by strik-
ing out "(10 U.S.C. 2172)" and inserting in Heu thereof "(10 
U.S.C. 16302)". 
(5) Section 179 of the National and Community Service 
Act of 1990 (42 U.S.C. 12639) is amended in subsection (a)(2)(C) 
by striking out "section 216(a) of title 5" and inserting in 
lieu thereof "section 10101 oftitle 10". 
(f) EFFECTIVE DATES.— 
(1) Section 1636 of the Reserve Officer Personnel Manage-
ment Act shall take effect on the date of the enactment of 
this Act. 
(2) The amendments made by sections 1672(a), 1673(a) 
(with respect to chapters 541 and 549), 1673(b)(2), 1673(b)(4), 
1674(a), and 1674(b)(7) shall take effect on the effective date 
specified in section 1691(b)(1) of the Reserve Officer Personnel 
Management Act (notwithstanding section 1691(a) of such Act). 
(3) The amendments made by this section shall take effect 
as if included in the Reserve Officer Personnel Management 
Act as enacted on October 5, 1994. 
10 use 12213 
note. 
10 use 10001 
note. 
10 use 113 note. 
110 STAT. 502 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 1502. AMENDMENTS TO REFLECT NAME CHANGE OF COMMITTEE 
ON ARMED SERVICES OF THE HOUSE OF REPRESENTA-
TIVES. 
(a) TITLE 10, UNITED STATES CODE.—Title 10, United States 
Code, is amended as follows: 
(1) Sections 
503(b)(5), 520a(d), 526(d)(1), 
619a(h)(2), 
806a(b), 
838(b)(7), 
946(c)(1)(A), 
1098(b)(2), 
2313(b)(4), 
2361(c)(1), 2371(h), 2391(c), 2430(b), 2432(b)(3)(B), 2432(c)(2), 
2432(h)(1), 
2667(d)(3), 
2672a(b), 
2687(b)(1), 
4342(g), 
7307(b)(1)(A), and 9342(g) are amended by striking out "Com-
mittees on Armed Services of the Senate and House of Rep-
resentatives" and inserting in lieu thereof "Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives". 
(2) Sections 
178(c)(1)(A), 942(e)(5), 2350f(c), 
7426(e), 
7431(a), 7431(b)(1), 7431(c), 7438(b), 12302(b), 18235(a), and 
18236(a) are amended by striking out "Committees on Armed 
Services of the Senate and the House of Representatives" and 
inserting in lieu thereof "Committee on Armed Services of 
the Senate and the Committee on National Security of the 
House of Representatives". 
(3) Section 113(j)(l) is amended by striking out "Commit-
tees on Armed Services and Committees on Appropriations 
of the Senate and" and inserting in lieu thereof "Committee 
on Armed Services and the Committee on Appropriations of 
the Senate and the Committee on National Security and the 
Committee on Appropriations of the". 
(4) Section 119(g) is amended by striking out paragraphs 
(1) and (2) and inserting in lieu thereof the following: 
"(1) the Committee on Armed Services and the Committee 
on Appropriations, and the Defense Subcommittee of the 
Committee on Appropriations, of the Senate; and 
"(2) the Committee on National Security and the Committee 
on Appropriations, and the National Security Subcommittee 
of the Committee on Appropriations, of the House of Represent-
atives.". 
(5) Section 127(c) is amended by striking out "Committees 
on Armed Services and Appropriations of the Senate and" and 
inserting in lieu thereof "Committee on Armed Services and 
the Committee on Appropriations of the Senate and the 
Committee on National Security and the Committee on Appro-
priations of. 
(6) Section 135(e) is amended— 
(A) by inserting "(1)" after "(e)"; 
(B) by striking out "the Committees on Armed Services 
and the Committees on Appropriations of the Senate and 
House of Representatives are each" and inserting in lieu 
thereof "each congressional committee specified in para-
graph (2) is"; and 
(C) by adding at the end the following: 
"(2) The committees referred to in paragraph (1) are— 
"(A) the Committee on Armed Services and the Committee 
on Appropriations of the Senate; and 
"(B) the Committee on National Security and the Commit-
tee on Appropriations of the House of Representatives.". 
(7) Section 179(e) is amended by striking out "to the 
Committees on Armed Services and Appropriations of the Sen-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 503 
ate and" and inserting in lieu thereof "to the Committee on 
Armed Services and the Committee on Appropriations of the 
Senate and the Committee on National Security and the 
Committee on Appropriations of the". 
(8) Sections 401(d) and 402(d) are amended by striking 
out "submit to the" and all that follows through "Foreign 
Affairs" and inserting in lieu thereof "submit to the Committee 
on Armed Services and the Committee on Foreign Relations 
of the Senate and the Committee on National Security and 
the Committee on International Relations". 
(9) Section 2367(d)(2) is amended by striking out "the 
Committees on Armed Services and the Committees on Appro-
priations of the Senate and" and inserting in lieu thereof "the 
Committee on Armed Services and the Committee on Appro-
priations of the Senate and the Committee on National Security 
and the Committee on Appropriations of the". 
(10) Sections 2306b(g), 2801(c)(4), and 18233a(a)(l) are 
amended by striking out "the Committees on Armed Services 
and on Appropriations of the Senate and" and inserting in 
lieu thereof "the Committee on Armed Services and the 
Committee on Appropriations of the Senate and the Committee 
on National Security and the Committee on Appropriations 
of the". 
(11) Section 1599(e)(2) is amended— 
(A) in subparagraph (A), by striking out "The Commit-
tees on Armed Services and Appropriations" and inserting 
in lieu thereof "The Committee on National Security, the 
Committee on Appropriations,"; and 
(B) in subparagraph (B), by striking out "The Commit-
tees on Armed Services and Appropriations" and inserting 
in lieu thereof "The Committee on Armed Services, the 
Committee on Appropriations,". 
(12) Sections 4355(a)(3), 6968(a)(3), and 9355(a)(3) are 
amended by striking out "Armed Services" and inserting in 
lieu thereof "National Security". 
(13) Section 1060(d) is amended by striking out "Committee 
on Armed Services and the Committee on Foreign Affairs" 
and inserting in lieu thereof "Committee on National Security 
and the Committee on International Relations". 
(14) Section 2215 is amended— 
(A) by inserting "(a) CERTIFICATION REQUIRED.—" at 
the beginning of the text of the section; 
(B) by striking out "to the Committees" and all that 
follows through "House of Representatives" and inserting 
in lieu thereof "to the congressional committees specified 
in subsection (b)"; and 
(C) by adding at the end the following: 
"(b) CONGRESSIONAL COMMITTEES.—^The committees referred to 
in subsection (a) are— 
"(1) the Committee on Armed Services and the Committee 
on Appropriations of the Senate; and 
"(2) the Committee on National Security and the Committee 
on Appropriations of the House of Representatives.". 
(15) Section 2218 is amended— 
(A) in subsection (j), by striking out "the Committees 
on Armed Services and on Appropriations of the Senate 
110 STAT. 504 
PUBLIC LAW 104-106—FEB. 10, 1996 
and the House of Representatives" and inserting in lieu 
thereof "the congressional defense committees"; and 
(B) by adding at the end of subsection (k) the following 
new paragraph: 
"(4) The term 'congressional defense committees' means— 
"(A) the Committee on Armed Services and the 
Committee on Appropriations of the Senate; and 
"(B) the Committee on National Security and the 
Committee on Appropriations of the House of Representa-
tives.". 
(16) Section 2342(b) is amended— 
(A) in the matter preceding paragraph (1), by striking 
out "section—" and inserting in lieu thereof "section 
unless—"; 
(B) in paragraph (1), by striking out "unless"; and 
(C) in paragraph (2), by striking out "notifies the" 
and all that follows through "House of Representatives" 
and inserting in lieu thereof "the Secretary submits to 
the Committee on Armed Services and the Committee on 
Foreign Relations of the Senate and the Committee on 
National Security and the Committee on International 
Relations of the House of Representatives notice of the 
intended designation". 
(17) Section 2350a(f)(2) is amended by striking out "submit 
to the Committees" and all that follows through "House of 
Representatives" and inserting in lieu thereof "submit to the 
Committee on Armed Services and the Committee on Foreign 
Relations of the Senate and the Committee on National Security 
and the Committee on International Relations of the House 
of Representatives". 
(18) Section 2366 is amended— 
(A) in subsection (d), by striking out "the Committees 
on Armed Services and on Appropriations of the Senate 
and House of Representatives" and inserting in lieu thereof 
"the congressional defense committees"; and 
(B) by adding at the end of subsection (e) the following 
new paragraph: 
"(7) The term 'congressional defense committees' means— 
"(A) the Committee on Armed Services and the 
Committee on Appropriations of the Senate; and 
"(B) the Committee on National Security and the 
Committee on Appropriations of the House of Representa-
tives.". 
(19) Section 2399(h)(2) is amended by striking out "means" 
and all the follows and inserting in lieu thereof the following: 
"means— 
"(A) the Committee on Armed Services and the 
Committee on Appropriations of the Senate; and 
"(B) the Committee on National Security and the 
Committee on Appropriations of the House of Representa-
tives.". 
(20) Section 2401(b)(1) is amended— 
(A) in subparagraph (B), by striking out "the Commit-
tees on Armed Services and on Appropriations of the Senate 
and" and inserting in lieu thereof "the Committee on Armed 
Services and the Committee on Appropriations of the Sen-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 505 
ate and the Committee on National Security and the 
Committees on Appropriations of the"; and 
(B) in subparagraph (C), by striking out "the Commit-
tees on Armed Services and on Appropriations of the Senate 
and House of Representatives" and inserting in lieu thereof 
"those committees". 
(21) Section 2403(e) is amended— 
(A) by inserting "(1)" before "Before making"; 
(B) by striking out "shall notify the Committees on 
Armed Services and on Appropriations of the Senate and 
House of Representatives" and inserting in lieu thereof 
"shall submit to the congressional committees specified in 
paragraph (2) notice"; and 
(C) by adding at the end the following new paragraph: 
"(2) The committees referred to in paragraph (1) are— 
"(A) the Committee on Armed Services and the Committee 
on Appropriations of the Senate; and 
"(B) the Committee on National Security and the Commit-
tee on Appropriations of the House of Representatives.". 
(22) Section 2515(d) is amended— 
(A) by striking out "REPORTING" and all that follows 
through "same time" and inserting in lieu thereof "ANNUAL 
REPORT.—(1) The Secretary of Defense shall submit to the 
congressional committees specified in paragraph (2) an 
annual report on the activities of the Office. The report 
shall be submitted each year at the same time"; and 
(B) by adding at the end the following new paragraph: 
"(2) The committees referred to in paragraph (1) are— 
"(A) the Committee on Armed Services and the Committee 
on Appropriations of the Senate; and 
"(B) the Committee on National Security and the Commit-
tee on Appropriations of the House of Representatives.". 
(23) Section 2662 is amended— 
(A) in subsection (a)— 
(i) in the matter preceding paragraph (1), by strik-
ing out "the Committees on Armed Services of the 
Senate and House of Representatives" and inserting 
in lieu thereof "the Committee on Armed Services of 
the Senate and the Committee on National Security 
of the House of Representatives"; and 
(ii) in the matter following paragraph (6), by strik-
ing out "to be submitted to the Committees on Armed 
Services of the Senate and House of Representatives"; 
(B) in subsection (b), by striking out "shall report 
annually to the Committees on Armed Services of the Sen-
ate and the House of Representatives" and inserting in 
lieu thereof "shall submit annually to the congressional 
committees named in subsection (a) a report"; 
(C) in subsection (e), by striking out "the Committees 
on Armed Services of the Senate and the House of Rep-
resentatives" and inserting in lieu thereof "the congres-
sional committees named in subsection (a)"; and 
(D) in subsection (f), by striking out "the Committees 
on Armed Services of the Senate and the House of Rep-
resentatives shall" and inserting in lieu thereof "the 
congressional committees named in subsection (a) shall". 
(24) Section 2674(a) is amended^ 
110 STAT. 506 
PUBLIC LAW 104-106—FEB. 10, 1996 
(A) in paragraph (2), by striking out "Committees on 
Armed Services of the Senate and the House of Representa-
tives, the Committee on Environment and Public Works 
of the Senate, and the Committee on Public Works and 
Transportation of the House of Representatives" and insert-
ing in lieu thereof "congressional committees specified in 
paragraph (3)"; and 
(B) by adding at the end the following new paragraph: 
"(3) The committees referred to in paragraph (2) are— 
"(A) the Committee on Armed Services and the Committee 
on Environment and Public Works of the Senate; and 
"(B) the Committee on National Security and the Commit-
tee on Transportation and Infrastructure of the House of Rep-
resentatives.". 
(25) Section 2813(c) is amended by striking out "Commit-
tees on Armed Services and the Committees on Appropriations 
of the Senate and House of Representatives" and inserting 
in lieu thereof "appropriate committees of Congress". 
(26) Sections 2825(b)(1) and 2832(b)(2) are amended by 
striking out "Committees on Armed Services and the Commit-
tees on Appropriations of the Senate and of the House of 
Representatives" and inserting in lieu thereof "appropriate 
committees of Congress". 
(27) Section 2865(eX2) and 2866(c)(2) are amended by strik-
ing out "Committees on Armed Services and Appropriations 
of the Senate and House of Representatives" and inserting 
in lieu thereof "appropriate committees of Congress". 
(28)(A) Section 7434 of such title is amended to read as 
follows: 
"§ 7434. Annual report to congressional committees 
"Not later than October 31 of each year, the Secretary shall 
submit to the Committee on Armed Services of the Senate and 
the Committee on National Security of the House of Representatives 
a report on the production from the naval petroleum reserves during 
the preceding calendar year.". 
(B) The item relating to such section in the table of contents 
at the beginning of chapter 641 is amended to read as follows: 
"7434. Annual report to congressional committees.". 
(b) TITLE 37, UNITED STATES CODE.—Sections 301b(i)(2) and 
406(i) of title 37, United States Code, are amended by striking 
out "Committees on Armed Services of the Senate and House of 
Representatives" and inserting in lieu thereof "Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives". 
(c) ANNUAL DEFENSE AUTHORIZATION ACTS.— 
(1) The National Defense Authorization Act for Fiscal Year 
1994 (Public Law 103-160) is amended in sections 2922(b) 
and 2925(b) (10 U.S.C. 2687 note) by striking out "Committees 
on Armed Services of the Senate and House of Representatives" 
and inserting in lieu thereof "Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives". 
(2) The National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484) is amended— 
10 use 2302 
(A) in section 326(a)(5) (10 U.S.C. 2301 note) and sec-
note, 
tion 1304(a) (10 U.S.C. 113 note), by striking out "Com-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 507 
mittees on Armed Services of the Senate Eind House of 
Representatives" and inserting in lieu thereof "Committee 
on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives"; and 
(B) in section 1505(e)(2)(B) (22 U.S.C. 5859a), by strik-
ing out "the Committee on Armed Services, the Committee 
on Appropriations, the Committee on Foreign Affairs, and 
the Committee on Energy and Commerce" and inserting 
in lieu thereof "the Committee on National Security, the 
Committee on Appropriations, the Committee on Inter-
national Relations, and the Committee on Commerce". 
(3) Section 1097(a)(1) of the National Defense Authorization 
Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 22 
U.S.C. 2751 note) is amended by striking out "the Committees 
on Armed Services and Foreign Affairs" and inserting in lieu 
thereof "the Committee on National Security and the Commit-
tee on International Relations". 
(4) The National Defense Authorization Act for Fiscal Year 
1991 (Public Law 101-510) is amended as follows: 
(A) Section 402(a) and section 1208(b)(3) (10 U.S.C. lo USC 115 note. 
1701 note) are amended by striking out "Committees on 
Armed Services of the Senate and the House of Representa-
tives" and inserting in lieu thereof "Committee on Armed 
Services of the Senate and the Committee on National 
Security of the House of Representatives". 
(B) Section 1403 (50 U.S.C. 404b) is amended— 
(i) in subsection (a), by striking out "the Commit-
tees on" and all that follows through "each year" and 
inserting in lieu thereof "the congressional committees 
specified in subsection (d) each year"; and 
(ii) by adding at the end the following new sub-
section: 
"(d) SPECIFIED CONGRESSIONAL COMMITTEES.—The congres-
sional committees referred to in subsection (a) are the following: 
"(1) The Committee on Armed Services, the Committee 
on Appropriations, and the Select Committee on Intelligence 
of the Senate. 
"(2) The Committee on National Security, the Committee 
on Appropriations, and the Permanent Select Committee on 
Intelligence of the House of Representatives.". 
(C) Section 1457 (50 U.S.C. 404c) is amended— 
(i) in subsection (a), by striking out "shall submit 
to the" and all that follows through "each year" and 
inserting in lieu thereof "shall submit to the congres-
sional committees specified in subsection (d) each 
year"; 
(ii) in subsection (c)— 
(I) by striking out "(1) Except as provided in 
paragraph (2), the President" and inserting in lieu 
thereof "The President"; and 
(II) by striking out paragraph (2); and 
(iii) by adding at the end the following new sub-
section: 
"(d) SPECIFIED CONGRESSIONAL COMMITTEES.—The congres-
sional committees referred to in subsection (a) are the following: 
"(1) The Committee on Armed Services and the Committee 
on Foreign Relations of the Senate. 
110 STAT. 508 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(2) The Committee on National Security and the Commit-
tee on International Relations of the House of Representatives.". 
(D) Section 2921 (10 U.S.C. 2687 note) is amended— 
(i) in subsection (e)(3)(A), by striking out "the 
Committee on Armed Services, the Committee on 
Appropriations, and the Defense Subcommittees" and 
inserting in lieu thereof "the Committee on National 
Security, the Committee on Appropriations, and the 
National Security Subcommittee"; and 
(ii) in subsection (g)(2), by striking out "the 
Committee on Armed Services of the Senate and House 
of Representatives" and inserting in lieu thereof "the 
Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Rep-
resentatives". 
(5) Section 613(h)(1) of the National Defense Authorization 
Act, Fiscal Year 1989 (Public Law 100-456; 37 U.S.C. 302 
note), is amended by striking out "the Committees on Armed 
Services of the Senate and the House of Representatives" and 
inserting in lieu thereof "the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives". 
(6) Section 1412 of the Department of Defense Authoriza-
tion Act, 1986 (Public Law 99-145; 50 U.S.C. 1521), is amended 
in subsections (b)(4) and (k)(2), by striking out "Committees 
on Armed Services of the Senate and House of Representatives" 
and inserting in lieu thereof "Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives". 
(7) Section 1002(d) of the Department of Defense Authoriza-
tion Act, 1985 (Public Law 98-525; 22 U.S.C. 1928 note), is 
amended by striking out "the Committees on Armed Services 
of the Senate and the House of Representatives" and inserting 
in lieu thereof "the Committee on Armed Services of the Senate, 
the Committee on National Security of the House of Representa-
tives". 
(8) Section 1252 of the Department of Defense Authoriza-
tion Act, 1984 (42 U.S.C. 248d), is amended— 
(A) in subsection (d), by striking out "Committees on 
Appropriations and on Armed Services of the Senate and 
the House of Representatives" and inserting in lieu thereof 
"Committee on Appropriations and the Committee on 
Armed Services of the Senate and the Committee on Appro-
priations and the Committee on National Security of the 
House of Representatives"; and 
(B) in subsection (e), by striking out "Committees on 
Appropriations and on Armed Services of the Senate and 
the House of Representatives" and inserting in lieu thereof 
"congressional committees specified in subsection (d)". 
(d) BASE 
CLOSURE LAW.—The Defense Base Closure and 
Reahgnment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note) is amended as follows: 
(1) Sections 2902(e)(2)(B)(ii) and 2908(b) are amended by 
striking out "Armed Services" the first place it appears and 
inserting in lieu thereof "National Security". 
(2) Section 2910(2) is amended by striking out "the Commit-
tees on Armed Services and the Committees on Appropriations 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 509 
of the Senate and of the House of Representatives" and insert-
ing in heu thereof "the Committee on Armed Services and 
the Committee on Appropriations of the Senate and the 
Committee on National Security and the Committee on Appro-
priations of the House of Representatives". 
(e) NATIONAL DEFENSE STOCKPILE.—^The Strategic and Critical 
Materials Stock Piling Act is amended— 
(1) in section 6(d) (50 U.S.C. 98e(d))— 
(A) in paragraph (1), by striking out "Committees on 
Armed Services of the Senate and House of Representa-
tives" and inserting in lieu thereof "Committee on Armed 
Services of the Senate and the Committee on National 
Security of the House of Representatives"; and 
(B) in paragraph (2), by striking out "the Committees 
on Armed Services of the Senate and House of Representa-
tives" and inserting in lieu thereof "such congressional 
committees"; and 
(2) in section 7(b) (50 U.S.C. QSflb)), by striking out 
"Committees on Armed Services of the Senate and House of 
Representatives" and inserting in lieu thereof "Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives". 
(f) OTHER DEFENSE-RELATED PROVISIONS.— 
(1) Section 8125(g)(2) of the Department of Defense Appro-
priations Act, 1989 (PubUc Law 100-463; 10 U.S.C. 113 note), 
is amended by striking out "Committees on Appropriations 
and Armed Services of the Senate and House of Representa-
tives" and inserting in lieu thereof "Committee on Appropria-
tions and the Committee on Armed Services of the Senate 
and the Committee on Appropriations and the Committee on 
National Security of the House of Representatives". 
(2) Section 9047A of the Department of Defense Appropria-
tions Act, 1993 (Public Law 102-396; 10 U.S.C. 2687 note), 
is amended by striking out "the Committees on Appropriations 
and Armed Services of the House of Representatives and the 
Senate" and inserting in lieu thereof "the Committee on Appro-
priations and the Committee on Armed Services of the Senate 
and the Committee on Appropriations and the Committee on 
National Security of the House of Representatives". 
(3) Section 3059(c)(1) of the Defense Drug Interdiction 
Assistance Act (subtitle A of title III of Public Law 99-570; 
10 U.S.C. 9441 note) is amended by striking out "Committees 
on Appropriations and on Armed Services of the Senate and 
the House of Representatives" and inserting in lieu thereof 
"Committee on Armed Services and the Committee on Appro-
priations of the Senate and the Committee on National Security 
and the Committee on Appropriations of the House of Rep-
resentatives". 
(4) Section 7606(b) of the Anti-Drug Abuse Act of 1988 
(Public Law 100-690; 10 U.S.C. 9441 note) is amended by 
striking out "Committees on Appropriations and the Committee 
on Armed Services of the Senate and the House of Representa-
tives" and inserting in lieu thereof "Committee on Armed Serv-
ices and the Committee on Appropriations of the Senate and 
the Committee on National Security and the Committee on 
Appropriations of the House of Representatives". 
110 STAT. 510 
PUBLIC LAW 104-106—FEB. 10, 1996 
(5) Section 104(d)(5) of the National Security Act of 1947 
(50 U.S.C. 403-4(d)(5)) is amended by striking out "Committees 
on Armed Services of the Senate and House of Representatives" 
and inserting in heu thereof "Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives". 
(6) Section 8 of the Inspector General Act of 1978 (5 U.S.C. 
App.) is amended— 
(A) in subsection (b)(3), by striking out "Committees 
on Armed Services and Government Operations" and 
inserting in lieu thereof "Committee on National Security 
and the Committee on Government Reform and Oversight"; 
(B) in subsection (b)(4), by striking out "Committees 
on Armed Services and Governmental A]^airs of the Senate 
and the Committees on Armed Services and Government 
Operations of the House of Representatives" and inserting 
in lieu thereof "congressional committees specified in para-
graph (3)"; 
(C) in subsection (f)(1), by striking out "Committees 
on Armed Services and Government Operations" and 
inserting in lieu thereof "Committee on National Security 
and the Committee on Government Reform and Oversight"; 
and 
(D) in subsection (f)(2), by striking out "Committees 
on Armed Services and Governmental Affairs of the Senate 
and the Committees on Armed Services and Government 
Operations of the House of Representatives" and inserting 
in lieu thereof "congressional committees specified in para-
graph (1)". 
(7) Section 204(h)(3) of the Federal Property and Adminis-
trative Services Act of 1949 (40 U.S.C. 485(h)(3)) is amended 
by striking out "Committees on Armed Services of the Senate 
and of the House of Representatives" and inserting in lieu 
thereof "Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representa-
tives". 
SEC. 1503. MISCELLANEOUS AMENDMENTS 
TO TITLE 
10, UNITED 
STATES CODE. 
(a) SUBTITLE A.—Subtitle A of title 10, United States Code, 
is amended as follows: 
(1) Section 113(i)(2)(B) is amended by striking out "the 
five years covered" and all that follows through "section 114(g)" 
and inserting in lieu thereof "the period covered by the future-
years defense program submitted to Congress during that year 
pursuant to section 221". 
(2) Section 136(c) is amended by striking out "Comptroller" 
and inserting in lieu thereof "Under Secretary of Defense 
(Comptroller)". 
(3) Section 526 is amended— 
(A) in subsection (a), by striking out paragraphs (1), 
(2), and (3) and inserting in lieu thereof the following: 
"(1) For the Army, 302. 
"(2) For the Navy, 216. 
"(3) For the Air Force, 279."; 
(B) by striking out subsection (b); 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 511 
(C) by redesignating subsections (c), (d), and (e) as 
subsections (b), (c), and (d); 
(D) in subsection (b), as so redesignated, by striking 
out "that are applicable on and after October 1, 1995"; 
and 
(E) in paragraph (2)(B) of subsection (c), as redesig-
nated by subparagraph (C), is amended— 
(i) by striking out "the" after "in the"; 
(ii) by inserting "to" after "reserve component, or"; 
and 
(iii) by inserting "than" after "in a grade other". 
(4) Section 528(a) is amended by striking out "after Septem-
ber 30, 1995,". 
(5) Section 573(a)(2) is amended by striking out "active 
duty list" and inserting in lieu thereof "active-duty list". 
(6) Section 661(d)(2) is amended— 
(A) in subparagraph (B), by striking out "Until January 
1, 1994" and all that follows through "each position so 
designated" and inserting in lieu thereof "Each position 
designated by the Secretary under subparagraph (A)"; 
(B) in subparagraph (C), by striking out "the second 
sentence of; and 
(C) by striking out subparagraph (D). 
(7) Section 706(c)(1) is amended by striking out "section 
4301 of title 38" and inserting in lieu thereof "chapter 43 
of title 38". 
(8) Section 1059 is amended by striking out "subsection 
(j)" in subsections (c)(2) and (g)(3) and inserting in lieu thereof 
"subsection (k)". 
(9) Section 1060a(f)(2)(B) is amended by striking out "(as 
defined in section 101(a)(22) of the Immigration and Nationality 
Act (8 U.S.C. 1101(a)(22)))" and inserting in lieu thereof ", 
as determined in accordance with the Immigration and Nation-
ality Act (8 U.S.C. 1101 et seq.)". 
(10) Section 1151 is amended— 
(A) in subsection (b), by striking out "(20 U.S.C. 2701 
et seq.)" in paragraphs (2)(A) and (3)(A) and inserting 
in lieu thereof "(20 U.S.C. 6301 et seq.)"; and 
(B) in subsection (e)(1)(B), by striking out "not later 
than one year after the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 1995" 
and inserting in lieu thereof "not later than October 5, 
1995". 
(11) Section 1152(g)(2) is amended by striking out "not 
later than 180 days after the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 1995" and 
inserting in lieu thereof "not later than April 3, 1994,". 
(12) Section 1177(b)(2) is amended by striking out "provison 
of law" and inserting in lieu thereof "provision of law". 
(13) The heading for chapter 67 is amended by striking 
out "NONREGULAR" and inserting in lieu thereof "NON-
REGULAR". 
(14) Section 1598(a)(2)(A) is amended by striking out "2701" 
and inserting in lieu thereof "6301". 
(15) Section 1745(a) is amended by striking out "section 
4107(d)" both places it appears and inserting in lieu thereof 
"section 4107(b)". 
110 STAT. 512 
PUBLIC LAW 104-106—FEB. 10, 1996 
(16) Section 1746(a) is amended— 
(A) by striking out "(1)" before "The Secretary of 
Defense"; and 
(B) by redesignating subparagraphs (A) and (B) as 
paragraphs (1) and (2), respectively. 
(17) Section 2006(b)(2)(B)(ii) is amended by striking out 
"section 1412 of such title" and inserting in lieu thereof "section 
3012 of such title". 
(18) Section 2011(a) is amended by striking out "TO" and 
inserting in lieu thereof "To". 
(19) Section 2194(e) is amended by striking out "(20 U.S.C. 
2891(12))" and inserting in lieu thereof "(20 U.S.C. 8801)". 
(20) Sections 2217(b) and 2220(a)(2) are amended by strik-
ing out "Comptroller of the Department of Defense" and insert-
ing in lieu thereof "Under Secretary of Defense (Comptroller)". 
(21) Section 2401(c)(2) is amended by striking out "pursu-
ant to" and all that follows through "September 24, 1983,". 
(22) Section 2410f(b) is amended by striking out "For pur-
poses of and inserting in lieu thereof "In". 
(23) Section 2410j(a)(2)(A) is amended by striking out 
"2701" and inserting in heu thereof "6301". 
(24) Section 2457(e) is amended by striking out "title III 
of the Act of March 3, 1933 (41 U.S.C. 10a)," and inserting 
in lieu thereof "the Buy American Act (41 U.S.C. 10a)". 
(25) Section 2465(b)(3) is amended by striking out "under 
contract" and all that follows through the period and inserting 
in lieu thereof "under contract on September 24, 1983.". 
(26) Section 2471(b) is amended— 
(A) in paragraph (2), by inserting "by" after "as deter-
mined"; and 
(B) in paragraph (3), by inserting "of after "arising 
out". 
(27) Section 2524(e)(4)(B) is amended by inserting a comma 
before "with respect to". 
(28) The heading of section 2525 is amended by capitalizing 
the initial letter of the second, fourth, and fifth words. 
(29) Chapter 152 is amended by striking out the table 
of subchapters at the beginning and the headings for sub-
chapters I and II. 
(30) Section 2534(c) is amended by capitalizing the initial 
letter of the third and fourth words of the subsection heading. 
(31) The table of sections at the beginning of subchapter 
I of chapter 169 is amended by adding a period at the end 
of the item relating to section 2811. 
(b) OTHER SUBTITLES.—Subtitles B, C, and D of title 10, United 
States Code, are amended as follows: 
(1) Sections 3022(a)(1), 5025(a)(1), and 8022(a)(1) are 
amended by striking out "Comptroller of the Department of 
Defense" and inserting in lieu thereof "Under Secretary of 
Defense (Comptroller)". 
(2) Section 6241 is amended by inserting "or" at the end 
of paragraph (2). 
(3) Section 6333(a) is amended by striking out the first 
period after "section 1405" in formula C in the table under 
the column designated "Column 2". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 513 
(4) The item relating to section 7428 in the table of sections 
at the beginning of chapter 641 is amended by striking out 
"Agreement" and inserting in lieu thereof "Agreements". 
(5) The item relating to section 7577 in the table of sections 
at the beginning of chapter 649 is amended by striking out 
"Officers" and inserting in lieu thereof "officers". 
(6) The center heading for part IV in the table of chapters 
at the beginning of subtitle D is amended by inserting a comma 
after "SUPPLY". 
SEC. 1504. MISCELLANEOUS AMENDMENTS 
TO ANNUAL 
DEFENSE 
AUTHORIZATION ACTS. 
(a) PUBLIC LAW 103-337.—Effective as of October 5, 1994, 
and as if included therein as enacted, the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337) is 
amended as follows: 
(1) Section 322(1) (108 Stat. 2711) is amended by striking 
out "SERVICE" in both sets of quoted matter and inserting 
in lieu thereof "SERVICES". 
(2) Section 531(g)(2) (108 Stat. 2758) is amended by insert-
ing "item relating to section 1034 in the" after "The". 
(3) Section 541(c)(1) is amended— 
(A) in subparagraph (B), by inserting a comma after 
"chief warrant officer"; and 
(B) in the matter after subparagraph (C), by striking 
out "this". 
(4) Section 721(f)(2) (108 Stat. 2806) is amended by striking 
out "revaluated" and inserting in lieu thereof "reevaluated". 
(5) Section 722(d)(2) (108 Stat. 2808) is amended by striking 
out "National Academy of Science" and inserting in lieu thereof 
"National Academy of Sciences". 
(6) Section 904(d) (108 Stat. 2827) is amended by striking 
out "subsection (c)" the first place it appears and inserting 
in lieu thereof "subsection (b)". 
(7) Section 1202 (108 Stat. 2882) is amended— 
(A) by striking out "(title XII of Public Law 103-60" 
and inserting in lieu thereof "(title XII of Public Law 103-
160"; and 
(B) in paragraph (2), by inserting "in the first sentence" 
before "and inserting in lieu thereof. 
(8) Section 1312(a)(2) (108 Stat. 2894) is amended by strik-
ing out "adding at the end" and inserting in lieu thereof "insert-
ing after the item relating to section 123a". 
(9) Section 2813(c) (108 Stat. 3055) is amended by striking 
out "above paragraph (1)" both places it appears and inserting 
in lieu thereof "preceding subparagraph (A)". 
(b) PUBLIC LAW 103-160.—^The National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160) is amended in 
section 1603(d) (22 U.S.C. 2751 note)— 
(1) in the matter preceding paragraph (1), by striking out 
the second comma after "Not later than April 30 of each year"; 
(2) in paragraph (4), by striking out "contributes" and 
inserting in lieu thereof "contribute"; and 
(3) in paragraph (5), by striking out "is" and inserting 
in lieu thereof "are". 
Effective date. 
10 u s e 2701 
note. 
10 u s e 2701. 
10 u s e 571 note. 
10 u s e 1074 
note. 
10 u s e 1074 
note. 
10 u s e 10501 
note. 
22 u s e 5956. 
10 u s e 123b. 
10 u s e 2687 
note. 
110 STAT. 514 
PUBLIC LAW 104-106—FEB. 10, 1996 
(c) PUBLIC LAW 102-484.—The National Defense Authorization 
Act for Fiscal Year 1993 (Pubhc Law 102-484) is amended as 
follows: 
(1) Section 326(a)(5) (106 Stat. 2370; 10 U.S.C. 2301 note) 
is amended by inserting "report" after "each". 
42USC7247J. 
(2) Section 3163(1XE) is amended by striking out "para-
graphs (1) through (4)" eind inserting in lieu thereof "subpara-
graphs (A) through (D)". 
(3) Section 4403(a) (10 U.S.C. 1293 note) is amended by 
striking out "through 1995" and inserting in lieu thereof 
"through fiscal year 1999". 
(d) PUBLIC LAW 102-190.—Section 1097(d) of the National 
Defense Authorization Act for Fiscal Years 1992 and 1993 (Public 
22 use 2751 
Law 102-190; 105 Stat. 1490) is amended by striking out "the 
note. 
Federal Republic of Germany, France" and inserting in lieu thereof 
"Fr£ince, Germany". 
SEC. 1505. MISCELLANEOUS AMENDMENTS TO OTHER LAWS. 
(a) OFFICER PERSONNEL ACT OF 1947.—Section 437 of the Offi-
10 use 5401 
cer Personnel Act of 1947 is repealed. 
noteprec. 
(b) TITLE 5, UNITED STATES CODE.—Title 5, United States 
Code, is amended— 
(1) in section 8171— 
(A) in subsection (a), by striking out "903(3)" and 
inserting in lieu thereof "9()3(a)"; 
(B) in subsection (c)(1), by inserting "section" before 
"39(b)"; and 
(C) in subsection (d), by striking out "(33 U.S.C. 18 
£ind 21, respectively)" and inserting in lieu thereof "(33 
U.S.C. 918 and 921)"; 
(2) in sections 8172 and 8173, by striking out "(33 U.S.C. 
2(2))" and inserting in lieu thereof "(33 U.S.C. 902(2))"; and 
(3) in section 8339(d)(7), by striking out "Court of MiHtary 
Appesds" and inserting in lieu thereof "Court of Appeals for 
the Armed Forces". 
Effective date. 
(c) PUBLIC LAW 90-485.—Effective as of August 13, 1968, and 
as if included therein as originally enacted, section 1(6) of Public 
10 use 1436. 
Law 90-485 (82 Stat. 753) is amended— 
(1) by striking out the close quotation marks after the 
end of clause (4) of the matter inserted by the amendment 
made by that section; and 
(2) by adding close quotation marks at the end. 
(d) TITLE 37, UNITED STATES CODE.—Section 406(b)(1)(E) of 
title 37, United States Code, is amended by striking out "of this 
paragraph". 
(e) BASE CLOSURE LAWS.—(1) The Defense Base Closure and 
Reahgnment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note) is amended— 
(A) in section 2905(b)(1)(C), by striking out "of the Adminis-
trator to grant approvals and make determinations under sec-
tion 13(g) of the Surplus Property Act of 1944 (50 U.S.C. 
App. 1622(g))" and inserting in lieu thereof "to dispose of sur-
plus property for public airports under sections 47151 through 
47153 of title 49, United States Code"; 
(B) in 
section 
2906(d)(1), by 
striking 
out 
"section 
204(b)(4)(C)" and inserting in lieu thereof "section 204(b)(7)(C)"; 
and 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 515 
(C) in section 2910— 
(i) by designating the second paragraph (10), as added 
by section 2(b) of the Base Closure Community Redevelop-
ment and Homeless Assistance Act of 1994 (Public Law 
103-421; 108 Stat. 4352), as paragraph (11); and 
(ii) in such paragraph, as so designated, by striking 
out "section 501(h)(4) of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11411(h)(4))" and inserting in 
lieu thereof "section 501(i)(4) of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11411(i)(4))". 
(2) Section 2921(d)(1) of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 
note) is amended by striking out "section 204(b)(4)(C)" and inserting 
in lieu thereof "section 204(b)(7)(C)". 
(3) Section 204 of the Defense Authorization Amendments and 
Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 
2687 note) is amended— 
(A) in subsection (b)(1)(C), by striking out "of the Adminis-
trator to grant approvals and make determinations under sec-
tion 13(g) of the Surplus Property Act of 1944 (50 U.S.C. 
App. 1622(g))" and inserting in lieu thereof "to dispose of sur-
plus property for public airports under sections 47151 through 
47153 of title 49, United States Code"; and 
(B) in subsection (b)(7)(A)(i), by striking out "paragraph 
(3)" and inserting in lieu thereof "paragraphs (3) through (6)". 
(f) PUBLIC LAW 103-421.—Section 2(e)(5) of Public Law 103-
421 (108 Stat. 4354) is amended— 
(1) by striking out "(A)" after "(5)"; and 
(2) by striking out "clause" in subparagraph (B)(iv) and 
inserting in lieu thereof "clauses". 
(g) ATOMIC ENERGY ACT.—Section 123a. of the Atomic Energy 
Act (42 U.S.C. 2153a.) is amended by striking out "144b., or 144d." 
and inserting ", 144b., or 144d.". 
SEC. 1506. COORDINATION WITH OTHER AMENDMENTS. 
For purposes of applying amendments made by provisions of 
this Act other than provisions of this title, this title shall be treated 
as having been enacted immediately before the other provisions 
of this Act. 
10 u s e 2687 
note. 
42 u s e 2153. 
10 u s e 101 note. 
TITLE XVI--CORPORATION FOR THE 
PROMOTION OF RIFLE PRACTICE AND 
FIREARMS SAFETY 
Corporation for 
the Promotion of 
Rifle Practice and 
Firearms Safety 
Act. 
SEC. 1601. SHORT TITLE. 
This title may be cited as the "Corporation for the Promotion 
of Rifle Practice and Firearms Ssifety Act". 
Subtitle A—Establishment and Operation 
of Corporation 
36 u s e 5501 
note. 
SEC. 1611. ESTABLISHMENT OF THE CORPORATION. 
(a) ESTABLISHMENT.—^There is established a private, nonprofit 
corporation to be known as the "Corporation for the Promotion 
36 u s e 5501. 
110 STAT. 516 
PUBLIC LAW 104-106—FEB. 10, 1996 
of Rifle Practice and Firearms Safety" (in this title referred to 
as the "Corporation"). 
(b) PRIVATE, NONPROFIT STATUS.—(1) The Corporation shall 
not be considered to be a department, agency, or instrumentality 
of the Federal Government. An officer or employee of the Corpora-
tion shall not be considered to be an officer or employee of the 
Federal Government. 
(2) The Corporation shall be operated in a manner and for 
purposes that qualify the Corporation for exemption from taxation 
under section 501(a) of the Internal Revenue Code of 1986 as 
an organization described in section 501(c)(3) of such Code. 
(c) BOARD OF DIRECTORS.—(1) The Corporation shall have a 
Board of Directors consisting of not less than nine members. 
(2) The Board of Directors may adopt bylaws, policies, and 
procedures for the Corporation and may take any other action 
that the Board of Directors considers necessary for the management 
and operation of the Corporation. 
(3) Each member of the Board of Directors shall serve for 
a term of two years. Members of the Board of Directors are eligible 
for reappointment. 
(4) A vacancy on the Board of Directors shall be filled by 
a majority vote of the remaining members of the Board. 
(5) The Secretary of the Army shall appoint the initial Board 
of Directors. Four of the members of the initial Board of Directors, 
to be designated by the Secretary at the time of appointment, 
shall (notwithstanding paragraph (3)) serve for a term of one year. 
(d) DIRECTOR OF CIVILIAN MARKSMANSHIP.—(1) The Board of 
Directors shall appoint an individual to serve as the Director of 
Civilian Marksmanship. 
(2) The Director shall be responsible for the performance of 
the daily operations of the Corporation and the functions described 
in section 1612. 
36 u s e 5502. 
SEC. 1612. CONDUCT OF CIVILIAN MARKSMANSHIP PROGRAM. 
(a) FUNCTIONS.—The Corporation shall have responsibility for 
the overall supervision, oversight, and control of the Civilian Marks-
manship Program, pursuant to the transfer of the program under 
subsection (d), including the performance of the following: 
(1) The instruction of citizens of the United States in 
marksmanship. 
(2) The promotion of practice and safety in the use of 
firearms, including the conduct of matches and competitions 
in the use of those firearms. 
(3) The award to competitors of trophies, prizes, badges, 
and other insignia. 
(4) The provision of security and accountability for all 
firearms, ammunition, and other equipment under the custody 
and control of the Corporation. 
(5) The issue, loan, or sale of firearms, ammunition, sup-
plies, and appliances under section 1614. 
(6) The procurement of necessary supplies, appliances, 
clerical services, other related services, and labor to carry out 
the Civilian Marksmanship Program. 
(b) 
PRIORITY FOR YOUTH ACTIVITIES.—In carrying out 
the 
Civilian Marksmanship Program, the Corporation shall give priority 
to activities that benefit firearms safety, training, and competition 
for youth and that reach as many youth participants as possible. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 517 
(c) ACCESS TO SURPLUS PROPERTY.—(1) The Corporation may 
obtain surplus property and supplies from the Defense Reutilization 
Marketing Service to carry out the Civilian Marksmanship Program. 
(2) Ajny transfer of property and supplies to the Corporation 
under paragraph (1) shall be made without cost to the Corporation. 
(d) TRANSFER OF CIVILIAN MARKSMANSHIP PROGRAM TO COR-
PORATION.—(1) The Secretary of the Army shall provide for the 
transition of the Civilian Marksmanship Program, as defined in 
section 4308(e) of title 10, United States Code (as such section 
was in effect on the day before the date of the enactment of 
this Act), from conduct by the Department of the Army to conduct 
by the Corporation. The transition shall be completed not later 
than September 30, 1996. 
(2) To carry out paragraph (1), the Secretary shall provide 
such assistance and take such action as is necessary to maintain 
the viability of the program and to maintain the security of firearms, 
ammunition, and other property that are transferred or reserved 
for transfer to the Corporation under section 1615, 1616, or 1621. 
SEC. 1613. ELIGIBILITY FOR PARTICIPATION IN CIVILIAN MARKSMAN- 
36 USC 5503. 
SHIP PROGRAM. 
(a) CERTIFICATION REQUIREMENT.—(1) Before a person may 
participate in any activity sponsored or supported by the Corpora-
tion, the person shall be required to certify by affidavit the following: 
(A) The person has not been convicted of any Federal 
or State felony or violation of section 922 of title 18, United 
States Code. 
(B) The person is not a member of any organization that 
advocates the violent overthrow of the United States Govern-
ment. 
(2) The Director of Civilian Marksmanship may require any 
person to attach to the person's affidavit a certification from the 
appropriate State or Federal law enforcement agency for purposes 
of paragraph (1)(A). 
(b) INELIGIBILITY RESULTING FROM CERTAIN CONVICTIONS.— 
A person who has been convicted of a Federal or State felony 
or a violation of section 922 of title 18, United States Code, shall 
not be eligible to participate in any activity sponsored or supported 
by the Corporation through the Civilian Marksmanship Program. 
(c) AUTHORITY TO 
LIMIT PARTICIPATION.—^The Director of 
Civilian Marksmanship may limit participation as necessary to 
ensure— 
(1) quality instruction in the use of firearms; 
(2) the safety of participants; and 
(3) the security of firearms, ammunition, and equipment. 
SEC. 1614. I S S U A N C E , LOAN, AND SALE OF FIREARMS AND AMMUNI- 
36 USC 5504. 
TION BY THE CORPORATION. 
(a) ISSUANCE AND LOAN.—For purposes of training and competi-
tion, the Corporation may issue or loan, with or without charges 
to recover administrative costs, caliber .22 rimfire and caliber .30 
surplus rifles, caliber .22 and .30 ammunition, air rifles, targets, 
and other supplies and appliances necessary for activities related 
to the Civilian Marksmanship Program to the following: 
(1) Organizations affiliated with the Corporation that pro-
vide training in the iise of firearms to youth. 
(2) The Boy Scouts of America. 
(3)4-HClubs. 
110 STAT. 518 
PUBLIC LAW 104-106—FEB. 10, 1996 
(4) Future Farmers of America. 
(5) Other youth-oriented organizations. 
(b) SALES.—(1) The Corporation may sell at fair market value 
caliber .22 rimfire and caliber .30 surplus rifles, caliber .22 and 
.30 ammunition, air rifles, repair parts, and accouterments to 
organizations affiliated with the Corporation that provide training 
in the use of firearms. 
(2) Subject to subsection (e), the Corporation may sell at fair 
market value caliber .22 rimfire and caliber .30 surplus rifles, 
ammunition, targets, repair parts and accouterments, and other 
supplies and appliances necessary for target practice to citizens 
of the United States over 18 years of age who are members of 
Procedures. 
a gun club affiliated with the Corporation. In addition to any 
Law enforcement 
other requirement, the Corporation shall establish procedures to 
and crime. 
obtain a criminal records check of the person with appropriate 
Federal and State law enforcement agencies. 
(c) LIMITATIONS ON SALES.—(1) The Corporation may not offer 
for sale any repair part designed to convert any firearm to fire 
in a fully automatic mode. 
(2) The Corporation may not sell rifles, ammunition, or any 
other item available for sale to individuals under the Civilian 
Marksmanship Program to a person who has been convicted of 
a felony or a violation of section 922 of title 18, United States 
Code. 
(d) OVERSIGHT AND ACCOUNTABILITY.—The Corporation shall 
be responsible for ensuring adequate oversight and accountability 
of all firearms issued or loaned under this section. The Corporation 
shall prescribe procedures for the security of issued or loaned fire-
arms in accordance with Federal, State, and local laws. 
(e) APPLICABILITY OF OTHER LAW.—(1) Subject to paragraph 
(2), sales under subsection (b)(2) are subject to applicable Federal, 
State, and local laws. 
(2) Paragraphs (1), (2), (3), and (5) of section 922(a) of title 
18, United States Code, do not apply to the shipment, transpor-
tation, receipt, transfer, sale, issuance, loan, or delivery by the 
Corporation of any item that the Corporation is authorized to issue, 
loan, sell, or receive under this title. 
36 u s e 5505. 
SEC. 1615. TRANSFER OF FIREARMS AND AMMUNITION FROM THE 
ARMY TO THE CORPORATION. 
(a) TRANSFERS REQUIRED.—The Secretary of the Army shall, 
in accordance with subsection (b), transfer to the Corporation all 
firearms and ammunition that on the day before the date of the 
enactment of this Act are under the control of the Director of 
the Civilian Marksmanship Program, including— 
(1) all firearms on loan to affiliated clubs and State associa-
tions; 
(2) all firearms in the possession of the Civilian Marksman-
ship Support Detachment; and 
(3) all M-1 Garand and caliber .22 rimfire rifles stored 
at Anniston Army Depot, Anniston, Alabama. 
(b) TIME FOR TRANSFER.—The Secretary shall transfer firearms 
and ammunition under subsection (a) as and when necessary to 
enable the Corporation— 
(1) to issue or loan such items in accordance with section 
1614(a); or 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 519 
(2) to sell such items to purchasers in accordance with 
section 1614(b). 
(c) PARTS.—^The Secretary may make available to the Corpora-
tion any part from a rifle designated to be demilitarized in the 
inventory of the Department of the Army. 
(d) VESTING OF TITLE IN TRANSFERRED ITEMS.—Title to 
an 
item transferred to the Corporation under this section shall vest 
in the Corporation— 
(1) upon the issuance of the item to a recipient eligible 
under section 1614(a) to receive the item; or 
(2) immediately before the Corporation delivers the item 
to a purchaser of the item in accordance with a contract for 
a sale of the item that is authorized under section 1614(b). 
(e) COSTS OF TRANSFERS.—^Any transfer of firearms, ammuni-
tion, or parts to the Corporation under this section shall be made 
without cost to the Corporation, except that the Corporation shall 
assume the cost of preparation and transportation of firearms and 
ammunition transferred under this section. 
SEC. 1616. RESERVATION BY THE ARMY OF FIREARMS AND AMMUNI- 
36 USC 5506. 
TION FOR THE CORPORATION. 
(a) RESERVATION OF FIREARMS AND AMMUNITION.—The Sec-
retary of the Army shall reserve for the Corporation the following: 
(1) All firearms referred to in section 1615(a). 
(2) Ammunition for such firearms. 
(3) All M-16 rifles used to support the small arms firing 
school that are held by the Department of the Army on the 
date of the enactment of this Act. 
(4) Any parts from, and accessories and accouterments 
for, surplus caliber .30 and caliber .22 rimfire rifles. 
(b) STORAGE OF FIREARMS AND AMMUNITION.—Firearms stored 
at Anniston Army Depot, Anniston, Alabama, before the date of 
the enactment of this Act and used for the Civilian Marksmanship 
Program shall remain at that facility, or another storage facility 
designated by the Secretary of the Army, without cost to the Cor-
poration, until the firearms are issued, loaned, or sold by, or other-
wise transferred to, the Corporation. 
(c) LIMITATION ON DEMILITARIZATION OF M - 1 RIFLES.—^After 
the date of the enactment of this Act, the Secretary may not 
demilitarize any M-1 Garand rifle in the inventory of the Army 
unless that rifle is determined by the Defense Logistics Agency 
to be unserviceable. 
(d) EXCEPTION FOR TRANSFERS TO FEDERAL AND STATE AGEN-
CIES FOR COUNTERDRUG PURPOSES.—The requirement specified in 
subsection (a) does not supersede the authority provided in section 
1208 of the National Defense Authorization Act for Fiscal Years 
1990 and 1991 (Public Law 101-189; 10 U.S.C. 372 note). 
SEC. 1617. ARMY LOGISTICAL SUPPORT FOR THE PROGRAM. 
36 USC 5507. 
(a) LOGISTICAL StrppoRT.—The Secretary of the Army shall 
provide logistical support to the Civilian Marksmanship Program 
and for competitions and other activities conducted by the Corpora-
tion. The Corporation shall reimburse the Secretary for incremental 
direct costs incurred in providing such support. Such reimburse-
ments shall be credited to the appropriations account of the Depart-
ment of the Army that is charged to provide such support. 
(b) RESERVE COMPONENT PERSONNEL.—The Secretary shall pro-
vide, without cost to the Corporation, for the use of members 
110 STAT. 520 
PUBLIC LAW 104-106—FEB. 10, 1996 
of the National Guard and Army Reserve to support the National 
Matches as part of the performance of annual training pursuant 
to titles 10 and 32, United States Code. 
(c) USE OF DEPARTMENT OF DEFENSE FACILITIES FOR NATIONAL 
MATCHES.—^The National Matches may continue to be held at those 
Department of Defense facilities at which the National Matches 
were held before the date of the enactment of this Act. 
(d) REGULATIONS.—The Secretary shall prescribe regulations 
to carry out this section. 
36 u s e 5508. 
SEC. 1618. GENERAL AUTHORITIES OF THE CORPORATION. 
(a) DONATIONS AND FEES.—(1) The Corporation may solicit, 
accept, hold, use, and dispose of donations of money, property, 
and services received by gift, devise, bequest, or otherwise. 
(2) The Corporation may impose, collect, and retain such fees 
as are reasonably necessary to cover the direct and indirect costs 
of the Corporation to carry out the Civilian Marksmanship Program. 
(3) Amounts collected by the Corporation under the authority 
of this subsection, including the proceeds from the sale of firearms, 
ammunition, targets, and other supplies and appliances, may be 
used only to support the Civilian Marksmanship Program. 
(b) CORPORATE SEAL.—The Corporation may adopt, alter, and 
use a corporate seal, which shall be judicially noticed. 
(c) CONTRACTS.—The Corporation may enter into contracts, 
leases, agreements, or other transactions. 
(d) OBLIGATIONS AND EXPENDITURES.—The Corporation may 
determine the character of, and necessity for, its obligations and 
expenditures and the manner in which they shall be incurred, 
allowed, and paid and may incur, allow, and pay such obligations 
and expenditures. 
(e) RELATED AUTHORITY.—^The Corporation may take such other 
actions as are necessary or appropriate to carry out the authority 
provided in this section. 
36 u s e 5509. 
SEC. 1619. DISTRIBUTION OF CORPORATE ASSETS IN EVENT OF DIS-
SOLUTION. 
(a) DISTRIBUTION.—If the Corporation dissolves, then— 
(1) upon the dissolution of the Corporation, title to all 
firearms stored at Anniston Army Depot, Anniston, Alabama, 
on the date of the dissolution, all M-16 rifles that are trans-
ferred to the Corporation under section 1615(a)(2), that are 
referred to in section 1616(a)(3), or that are otherwise under 
the control of the Corporation, and all trophies received by 
the Corporation from the National Board for the Promotion 
of Rifle Practice as of such date, shall vest in the Secretary 
of the Army, and the Secretary shall have the immediate right 
to the possession of such items; 
(2) assets of the Corporation, other than assets described 
in paragraph (1), may be distributed by the Corporation to 
an organization that— 
(A) is exempt from taxation under section 501(a) of 
the Internal Revenue Code of 1986 as an organization 
described in section 501(c)(3) of such Code; and 
(B) performs 
functions 
similar to the functions 
described in section 1612(a); and 
(3) all assets of the Corporation that are not distributed 
pursuant to paragraphs (1) and (2) shall be sold, and the 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 521 
proceeds from the sale of such assets shall be deposited in 
the Treasury. 
(b) PROHIBITION.—^Assets of the Corporation that are distributed 
pursuant to the authority of subsection (a) may not be distributed 
to an individual. 
Subtitle B—Transitional Provisions 
SEC. 1621. TRANSFER OF FUNDS AND PROPERTY TO THE CORPORA- 
36 USC 5521. 
TION. 
(a) FUNDS.—(1) On the date of the submission of a certification 
in accordance with section 1623 or, if earlier, October 1, 1996, 
the Secretary of the Army shall transfer to the Corporation— 
(A) the amounts that are available to the National Board 
for the Promotion of Rifle Practice from sales programs and 
fees collected in connection with competitions sponsored by 
the Board; and 
(B) all funds that are in the nonappropriated fund account 
known as the National Match Fund. 
(2) The funds transferred under paragraph (1)(A) shall be used 
to carry out the Civilian Marksmanship Program. 
(3) Transfers under paragraph (1)(B) shall be made without 
cost to the Corporation. 
(b) PROPERTY.—^The Secretary of the Army shall, as soon as 
practicable, transfer to the Corporation the following: 
(1) All automated data equipment, all other office equip-
ment, targets, target frames, vehicles, and all other property 
under the control of the Director of Civilian Marksmanship 
and the Civilian Marksmanship Support Detachment on the 
day before the date of the enactment of this Act (other than 
property to which section 1615(a) applies). 
(2) Title to property under the control of the National 
Match Fund on such day. 
(3) All supplies and appliances under the control of the 
Director of the Civilian Marksmanship Program on such day. 
(c) OFFICES.—^The Corporation may use the office space of the 
Office of the Director of Civilian Marksmanship until the date 
on which the Secretary of the Army completes the transfer of 
the Civilian Marksmanship Program to the Corporation. The Cor-
poration shall assume control of the leased property occupied as 
of the date of the enactment of this Act by the Civilian Marksman-
ship Support Detachment, located at the Erie Industrial Park, 
Port Clinton, Ohio. 
(d) COSTS OF TRANSFERS.—^Any transfer of items to the Corpora-
tion under this section shall be made without cost to the Corpora-
tion. 
SEC. 1622. CONTINUATION OF ELIGIBILITY FOR CERTAIN CIVIL SERV- 
36 USC 5522. 
ICE BENEFITS FOR FORMER FEDERAL EMPLOYEES OF 
CIVILIAN MARKSMANSHIP PROGRAM. 
(a) CONTINUATION OF ELIGIBILITY.—Notwithstanding any other 
provision of law, a Federal employee who is employed by the Depart-
ment of Defense to support the Civilian Marksmanship Program 
as of the day before the date of the transfer of the Program to 
the Corporation and is offered employment by the Corporation 
as part of the transition described in section 1612(d) may, if the 
18 : QL 3 Part 1 
110 STAT. 522 
PUBLIC LAW 104-10&—FEB. 10, 1996 
employee becomes employed by the Corporation, continue to be 
eligible during continuous employment with the Corporation for 
the Federal health, retirement, and similar benefits (including life 
insurance) for which the employee would have been eligible had 
the employee continued to be employed by the Department of 
Defense. The employer's contribution for such benefits shall be 
paid by the Corporation. 
(b) REGULATIONS.—The Director of the Office of Personnel 
Management shall prescribe regulations to carry out subsection 
(a). 
36 use 5523. 
SEC. 1623. CERTIFICATION OF COMPLETION OF TRANSITION. 
(a) CERTIFICATION REQUIREMENT.—^Upon completion of the 
appointment of the Board of Directors for the Corporation under 
section 1611(c)(5) and of the transition required under section 
1612(d), 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 certification of the 
completion of such actions. 
Federal Register, 
(b) PUBLICATION OF CERTIFICATION.—^The Secretary shall take 
publication. 
such actions as are necessary to ensure that the certification is 
published in the Federal Register promptly after the submission 
of the certification under subsection (a). 
SEC. 1624. REPEAL OF AUTHORITY FOR CONDUCT OF CIVILIAN 
MARKSMANSHIP PROGRAM BY THE ARMY. 
(a) REPEALS.—(1) Sections 4307, 4308, 4310, and 4311 of title 
10, United States Code, are repealed. 
(2) The table of sections at the beginning of chapter 401 of 
such title is amended by striking out the items relating to sections 
4307, 4308, 4310, and 4311. 
(b) CONFORMING AMENDMENTS.—(1) Section 4313 of title 10, 
United States Code, is amended— 
(A) by striking out subsection (b); and 
(B) in subsection (a)— 
(i) by striking out "(a) JUNIOR COMPETITORS.—" and 
inserting in lieu thereof "(a) ALLOWANCES FOR PARTICIPA-
TION OF JUNIOR COMPETITORS.—"; and 
(ii) in paragraph (3), by striking out "(3) For the pur-
poses of this subsection" and inserting in lieu thereof "(b) 
JUNIOR COMPETITOR DEFINED.—For the purposes of sub-
section (a)". 
(2) Section 4316 of such title is amended by striking out ", 
including fees charged and amounts collected pursuant to sub-
sections (b) and (c) of section 4308,". 
(3) Section 925(a)(2)(A) of title 18, United States Code, is 
amended by inserting after "section 4308 of title 10" the following: 
"before the repeal of such section by section 1624(a) of the Corpora-
tion for the Promotion of Rifle Practice and Firearms Safety Act". 
10 use 4313 
(c) EFFECTIVE DATE.—The amendments made by this section 
note. 
shall take efiect on the earlier of— 
(1) the date on which the Secretary of the Army submits 
a certification in accordance with section 1623; or 
(2) October 1, 1996. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 523 
DIVISION B—MILITARY CONSTRUCTION 
AUTHORIZATIONS 
SEC. 2001. SHORT TITLE. 
This division may be cited as the 
Authorization Act for Fiscal Year 1996". 
'MiUtary Construction 
TITLE XXI—ARMY 
SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISI-
TION PROJECTS. 
(a) INSIDE THE UNITED STATES.—Using amounts appropriated 
pursuant 
to the 
authorization 
of appropriations 
in 
section 
2104(a)(1), the Secretary of the Army may acquire real property 
and carry out military' construction projects for the installations 
and locations inside the United States, and in the amounts, set 
forth in the following table: 
Army: Inside the United States 
Military 
Construction 
Authorization 
Act for Fiscal 
Year 1996. 
State 
Installation or location 
Amount 
Alabama 
Arizona 
California 
Colorado 
District of Columbia 
(jeorgia 
Hawaii 
Kansas 
Kentucky 
New Jersey 
New Mexico 
New York 
North Carolina 
Oklahoma 
South Carolina 
Texas 
Virginia 
Washington 
CONUS Classified .. 
Fort Rucker 
Redstone Arsenal 
Fort Huachuca 
Fort Irwin 
Presidio of San Francisco 
Fort Carson 
Fort McNair 
Fort Benning 
Fort Gordon 
Fort Stewart 
Schofield Barracks 
Fort Riley 
Fort Campbell 
Fort Knox 
Picatinny Arsenal 
White Sands Missile Range 
Fort Drum 
United States Military Academy 
Watervliet Arsenal 
Fort Bragg 
Fort Sill 
Naval Weapons Station, Charleston 
Fort Jackson 
Fort Hood 
Fort Bliss 
Fort Sam Houston 
Fort Eustis 
, 
Fort Lewis 
Classified Location 
Total: 
$5 
$5 
$16 
$25 
$3 
$30 
$13 
$37 
$30 
$7, 
$10 
$5, 
$5, 
$29 
$14 
$25 
$32 
$32 
$56 
$7 
$16 
$32 
$1 
900,000 
000,000 
000,000 
500,000 
000,000 
850,000 
500,000 
900,000 
750,000 
400,000 
000,000 
000,000 
000,000 
600,000 
500,000 
050,000 
,800,000 
,300,000 
$680,000 
700,000 
300,000 
700,000 
000,000 
500,000 
900,000 
,000,000 
,400,000 
,100,000 
,900,000 
$478,230,000 
(b) OUTSIDE THE UNITED STATES.—^Using amounts appropriated 
pursuant 
to the 
authorization 
of appropriations 
in 
section 
2104(a)(2), the Secretary of the Army may acquire real property 
and carry out military construction projects for the locations outside 
110 STAT. 524 
PUBLIC LAW 104-106—FEB. 10, 1996 
the United States, and in the amounts, set forth in the following 
table: 
Army: Outside the United States 
Country 
Installation or location 
Camp Casey 
Camp Hovey 
Camp Pelham 
Camp Stanley 
Yongsan 
Classified Location 
Host Nation Support 
Total: 
Amount 
Korea 
Overseas Classified 
Worldwide 
, 
$4,150,000 
$13,500,000 
$5,600,000 
$6,800,000 
$4,500,000 
$48,000,000 
$20,000,000 
$102,550,000 
SEC. 2102. FAMILY HOUSING. 
(a) CONSTRUCTION AND ACQUISITION.—Using amounts appro-
priated pursuant to the authorization of appropriations in section 
2104(a)(5)(A), the Secretary of the Army may construct or acquire 
family housing units (including land acquisition) at the installa-
tions, for the purposes, and in the amounts set forth in the following 
table: 
Army: Family Housing 
State 
Kentucky 
New York 
Virginia 
Washington 
Installation 
Fort Knox 
United States Military 
Academy, West Point 
Fort Lee 
Fort Lewis 
Purpose 
150 units 
119 units 
135 units 
84 units 
Total: 
Amount 
$19,000,000 
$16,500,000 
$19,500,000 
$10,800,000 
$65,800,000 
(b) 
PLANNING AND DESIGN.—^Using amounts 
appropriated 
pursuant to the authorization 
of appropriations 
in section 
2104(a)(5)(A), the Secretary of the Army may carry out architectural 
and engineering services and construction design activities with 
respect to the construction or improvement of family housing units 
in an amount not to exceed $2,000,000. 
SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS. 
Subject to section 2825 of title 10, United States Code, and 
using amounts appropriated pursuant to the authorization of appro-
priations in section 2104(a)(5)(A), the Secretary of the Army may 
improve existing military family housing in an amount not to exceed 
$48,856,000. 
SEC. 2104. A U T H O R I Z A T I O N OF APPROPRIATIONS, ARMY. 
(a) IN GENERAL.—Subject to subsection (c), funds are hereby 
authorized to be appropriated for fiscal years beginning after 
September 30, 1995, for military construction, land acquisition, 
and military family housing functions of the Department of the 
Army in the total amount of $2,147,427,000 as follows: 
(1) For military construction projects inside the United 
States authorized by section 2101(a), $478,230,000. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 525 
(2) For military construction projects outside the United 
States authorized by section 2101(b), $102,550,000. 
(3) For unspecified minor military construction projects 
authorized by section 2805 of title 10, United States Code, 
$9,000,000. 
(4) For architectural and engineering services and construc-
tion design under section 2807 of title 10, United States Code, 
$34,194,000. 
(5) For military family housing functions: 
(A) For construction and acquisition, planning and 
design, and improvements of military family housing and 
facilities, $116,656,000. 
(B) For support of military family housing (including 
the functions described in section 2833 of title 10, United 
States Code), $1,337,596,000. 
(6) For the Homeowners Assistance Program, as authorized 
by section 2832 of title 10, United States Code, $75,586,000, 
to remain available until expended. 
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.— 
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation author-
ized by law, the total cost of all projects carried out under section 
2101 of this Act may not exceed the total amount authorized to 
be appropriated under paragraphs (1) and (2) of subsection (a). 
(c) ADJUSTMENT.—^The total amount authorized to be appro-
priated pursuant to paragraphs (1) through (6) of subsection (a) 
is the sum of the amounts authorized to be appropriated in such 
paragraphs, reduced by $6,385,000, which represents the combina-
tion of project savings resulting from favorable bids, reduced over-
head costs, and cancellations due to force structure changes. 
TITLE XXII—NAVY 
SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISI-
TION PROJECTS. 
(a) INSIDE THE UNITED STATES.—^Using amounts appropriated 
pursuant 
to the 
authorization 
of appropriations 
in 
section 
2204(a)(1), and, in the case of the project described in section 
2204(b)(2), other amounts appropriated pursuant to authorizations 
enacted after this Act for that project, the Secretary of the Navy 
may acquire real property and carry out military construction 
projects for the installations and locations inside the United States, 
and in the amounts, set forth in the following table: 
Navy: Inside the United States 
state 
California 
Installation or location 
Marine Corps Air-Ground Combat Center, 
Twentynine Palms 
Marine Corps Base, Camp Pendleton 
Naval Command, Control, and Ocean Sur-
veillance Center, San Diego 
Naval Air Station, Lemoore 
Naval Air Station, North Island 
Naval Air Warfare Center Weapons Divi-
sion, China Lake 
Amount 
$2,490,000 
$27,584,000 
$3,170,000 
$7,600,000 
$99,150,000 
$3,700,000 
110 STAT. 526 
PUBLIC LAW 104-106—FEB. 10, 1996 
Navy: Inside the United States—Continued 
State 
Installation or location 
Amount 
Florida 
Georgia 
Hawaii 
Illinois 
Indiana 
Maryland 
New Jersey 
North Carolina 
Pennsylvania .. 
South Carolina 
Texas 
Virginia 
Washington 
West Virginia 
CONUS Classified 
Naval Air Warfare Center Weapons Divi-
sion, Point Mugu 
Naval Construction Batallion Center, Port 
Hueneme 
Naval Station, San Diego 
Naval School Explosive Ordinance Dis-
posal, Eglin Air Force Base 
Naval Technical Training Center, Corry 
Station, Pensacola 
Strategic Weapons Facility, Atlantic, Kings 
Bay 
Honolulu 
Naval 
Computer 
and 
Tele-
communications Area, Master 
Station 
Eastern Pacific 
Intelligence Center Pacific, Pearl Harbor ... 
Naval Submarine Base, Pearl Harbor 
Naval Training Center, Great Lakes 
Crane Naval Surface Warfare Center 
Naval Academy, Annapolis 
Naval Air Warfare Center Aircraft Divi-
sion, Lakehurst 
Marine Corps Air Station, Cherry Point 
Marine Corps Air Station, New River 
Marine Corps Base, Camp LeJeune 
Philadelphia Naval Shipyard 
Marine Corps Air Station, Beaufort 
Naval Air Station, Corpus Christi 
Naval Air Station, Kingsville 
Naval Station, Ingleside 
Fleet and Industrial Supply Center, Wil-
liamsburg 
Henderson Hall, Arlington 
Marine Corps Combat Development Com-
mand, Quantico 
Naval Hospital, Portsmouth 
Naval Station, Norfolk 
Naval Weapons Station, Yorktown 
Naval Undersea Warfare Center Division, 
Keyport 
Puget Sound Naval Shipyard, Bremerton .. 
Naval Security Group Detachment 
Classified Locations 
Total: 
$1,300,000 
$16,700,000 
$19,960,000 
$16,150,000 
$2,565,000 
$2,450,000 
$1,980,000 
$2,200,000 
$22,500,000 
$12,440,000 
$3,300,000 
$3,600,000 
$1,700,000 
$11,430,000 
$14,650,000 
$59,300,000 
$6,000,000 
$15,000,000 
$4,400,000 
$2,710,000 
$2,640,000 
$8,390,000 
$1,900,000 
$3,500,000 
$9,500,000 
$10,580,000 
$1,300,000 
$5,300,000 
$19,870,000 
$7,200,000 
$1,200,000 
$435,409,000 
(b) OUTSIDE THE UNITED STATES.—^Using amounts appropriated 
pursuant 
to the 
authorization 
of appropriations 
in 
section 
2204(a)(2), the Secretary of the NaVy may acquire real property 
and carry out mihtary construction projects for the installations 
and locations outside the United States, and in the amounts, set 
forth in the following table: 
Navy: Outside the United States 
Country 
Installation or location 
Amount 
Guam 
Naval Computer and Telecommunications 
Area, Master Station Western Pacific 
$2,250,000 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 527 
Navy: Outside the United States—Continued 
Country 
Italy 
Puerto Rico 
Installation or location 
Navy Public Works Center, Guam 
Naval Air Station, Sigonella 
Naval Support Activity, Naples 
Naval Security Group Activity, Sabana 
Seca 
Naval Station, Roosevelt Roads 
Total 
Amount 
$16,180,000 
$12,170,000 
$24,950,000 
$2,200,000 
$11,500,000 
$69,250,000 
SEC. 2202. FAMILY HOUSING. 
(a) CONSTRUCTION AND ACQUISITION.—Using amounts appro-
priated pursuant to the authorization of appropriations in section 
2204(a)(5)(A), the Secretary of the Navy may construct or acquire 
family housing units (including land acquisition) at the installa-
tions, for the purposes, and in the amounts set forth in the following 
table: 
Navy: Family Housing 
State 
California 
Hawaii 
Maryland 
North Carolina .... 
Pennsylvania 
Puerto Rico 
Virginia 
West Virginia 
Installation 
Marine Corps Base, Camp 
Pendleton 
Marine Corps Base, Camp 
Pendleton 
Marine Corps Base, Camp 
Pendleton 
Naval Air Station, 
Lemoore 
Pacific Missile Test Cen-
ter, Point Mugu 
Public Works Center, San 
Diego 
Naval Complex, Oahu 
Naval Air Test Center, Pa-
tuxent River 
US Naval Academy, An-
napolis 
Marine Corps Air Station, 
Cherry Point 
Navy Ships Parts Control 
Center, Mechanicsburg .. 
Naval Station, Roosevelt 
Roads 
Naval Surface Warfare 
Center, Dahlgren 
Public Works Center, Nor-
folk 
Public Works Center, Nor-
folk 
Security Group Naval De-
tachment, Sugar Grove . 
Purpose 
138 units 
Community Cen-
ter. 
Housing Office .... 
240 units 
Housing Office .... 
346 units 
252 units 
Warehouse 
Housing Office .... 
Community Cen-
ter. 
Housing Office .... 
Housing Office .... 
Housing Office .... 
320 units 
Housing Office .... 
23 units 
Total: 
Amount 
$20,000,000 
$1,438,000 
$707,000 
$34,900,000 
$1,020,000 
$49,310,000 
$48,400,000 
$890,000 
$800,000 
$1,003,000 
$300,000 
$710,000 
$520,000 
$42,500,000 
$1,390,000 
$3,590,000 
$207,478,000 
110 STAT. 528 
PUBLIC LAW 104-106—FEB. 10, 1996 
(b) 
PLANNING AND DESIGN.—Using amounts 
appropriated 
pursuant 
to the authorization 
of appropriations 
in 
section 
2204(a)(5)(A), the Secretary of the Navy may carry out architectural 
and engineering services and construction design activities with 
respect to the construction or improvement of miUtary family hous-
ing units in an amount not to exceed $24,390,000. 
SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS. 
Subject to section 2825 of title 10, United States Code, and 
using amounts appropriated pursuant to the authorization of appro-
priations in section 2204(a)(5)(A), the Secretary of the Navy may 
improve existing military family housing units in an amount not 
to exceed $290,831,000. 
SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY. 
(a) IN GENERAL.—Subject to subsection (c), funds are hereby 
authorized to be appropriated for fiscal years beginning after 
September 30, 1995, for military construction, land acquisition, 
and military family housing functions of the Department of the 
Navy in the total amount of $2,119,317,000 as follows: 
(1) For military construction projects inside the United 
States authorized by section 2201(a), $427,709,000. 
(2) For military construction projects outside the United 
States authorized by section 2201(b), $69,250,000. 
(3) For unspecified minor construction projects authorized 
by section 2805 of title 10, United States Code, $7,200,000. 
(4) For architectural and engineering services and construc-
tion design under section 2807 of title 10, United States Code, 
$50,515,000. 
(5) For military family housing functions: 
(A) For construction and acquisition, planning and 
design, and improvement of military family housing and 
facilities, $522,699,000. 
(B) For support of military housing (including functions 
described in section 2833 of title 10, United States Code), 
$1,048,329,000. 
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.— 
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation author-
ized by law, the total cost of all projects carried out under section 
2201 of this Act may not exceed— 
(1) the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a); and 
(2) $7,700,000 (the balance of the amount authorized under 
section 2201(a) for the construction of a bachelor enlisted quar-
ters at the Naval Construction Batallion Center, Port Hueneme, 
California). 
(c) ADJUSTMENT.—The total amount authorized to be appro-
priated pursuant to paragraphs (1) through (5) of subsection (a) 
is the sum of the amounts authorized to be appropriated in such 
paragraphs, reduced by $6,385,000, which represents the combina-
tion of project savings resulting from favorable bids, reduced over-
head costs, and cancellations due to force structure changes. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 529 
SEC. 2205. REVISION OF FISCAL YEAR 1995 AUTHORIZATION OF 
APPROPRIATIONS TO CLARIFY AVAILABILITY OF FUNDS 
FOR LARGE ANECHOIC CHAMBER FACILITY, PATUXENT 
RIVER NAVAL WARFARE CENTER, MARYLAND. 
Section 2204(a) of the Military Construction Authorization Act 
for Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 
3033) is amended— 
(1) in the matter preceding paragraph (1), by striking out 
"$1,591,824,000" and inserting in lieu thereof "$1,601,824,000"; 
and 
(2) by adding at the end the following: 
"(6) For the construction of the large anechoic chamber 
facility at the Patuxent River Naval Warfare Center, Aircraft 
Division, Maryland, authorized by section 2201(a) of the Mili-
tary Construction Authorization Act for Fiscal Year 1993 (divi-
sion B of Public Law 102-484; 106 Stat. 2590), $10,000,000.". 
SEC. 2206. AUTHORITY TO CARRY OUT LAND ACQUISITION PROJECT, 
HAMPTON ROADS, VIRGINIA. 
The table in section 2201(a) of the Military Construction 
Authorization Act for Fiscal Year 1993 (division B of Public Law 
102-484; 106 Stat. 2589) is amended— 
(1) in the item relating to Damneck, Fleet Combat Training 
Center, Virginia, by striking out "$19,427,000" in the amount 
column and inserting in lieu thereof "$14,927,000"; and 
(2) by inserting after the item relating to Damneck, Fleet 
Combat Training Center, Virginia, the following new item: 
Hampton Roads 
$4,500,000 
SEC. 2207. ACQUISITION OF LAND, HENDERSON HALL, ARLINGTON, 
VIRGINIA. 
(a) AUTHORITY TO ACQUIRE.—Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(1), the Secretary of the Navy may acquire all right, title, 
and interest of any party in and to a parcel of real property, 
including an abandoned mausoleum, consisting of approximately 
0.75 acres and located in Arlington, Virginia, the site of Henderson 
Hall. 
(b) DEMOLITION OF MAUSOLEUM.—Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(1), the Secretary may— 
(1) demolish the mausoleum located on the parcel acquired 
under subsection (a); and 
(2) provide for the removal and disposition in an appro-
priate manner of the remains contained in the mausoleum. 
(c) AUTHORITY TO DESIGN PUBLIC WORKS FACILITY.—Using 
amounts appropriated pursuant to the authorization of appropria-
tions in section 2204(a)(1), the Secretary may obtain architectural 
and engineering services and construction design for a warehouse 
and office facility for the Marine Corps to be constructed on the 
property acquired under subsection (a). 
(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of the real property authorized to be acquired under 
subsection (a) shall be determined by a survey that is satisfactory 
to the Secretary. The cost of the survey shall be borne by the 
Secretary. 
110 STAT. 530 
PUBLIC LAW 104-106—FEB. 10, 1996 
(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the acquisition under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States. 
SEC. 2208. ACQUISITION OR CONSTRUCTION OF MILITARY FAMILY 
HOUSING IN VICINITY OF SAN DIEGO, CALIFORNIA. 
(a) AUTHORITY TO USE LITIGATION PROCEEDS.—Upon final 
settlement in the case of Rossmoor Liquidating Trust against United 
States, in the United States District Court for the Central District 
of California (Case No. CV 82-0956 LEW (Px)), the Secretary of 
the Treasury shall deposit in a separate account any funds paid 
to the United States in settlement of such case. At the request 
of the Secretary of the Navy, the Secretary of the Treasury shall 
make available amounts in the account to the Secretary of the 
Navy solely for the acquisition or construction of military family 
housing, including the acquisition of land necessary for such acquisi-
tion or construction, for members of the Armed Forces and their 
dependents stationed in, or in the vicinity of, San Diego, California. 
In using amounts in the account, the Secretary of the Navy may 
use the authorities provided in subchapter IV of chapter 169 of 
title 10, United States Code, as added by section 2801 of this 
Act. 
(b) UNITS AUTHORIZED.—^Not more than 150 military family 
housing units may be acquired or constructed with funds referred 
to in subsection (a). The units authorized by this subsection are 
in addition to any other units of military family housing authorized 
to be acquired or constructed in, or in the vicinity of, San Diego, 
California. 
(c) PAYMENT OF EXCESS INTO TREASURY.—^The Secretary of 
the Treasury shall deposit into the Treasury as miscellaneous 
receipts funds referred to in subsection (a) that have not been 
obligated for construction under this section within four years after 
receipt thereof. 
(d) LIMITATION.—^The Secretary may not enter into any contract 
for the acquisition or construction of military family housing under 
this section until after the expiration of the 21-day period beginning 
on the day after the day on which the Secretary transmits to 
the congressional defense committees a report containing the details 
of such contract. 
(e) REPEAL OF EXISTING AUTHORITY.—Section 2848 of the Mili-
tary Construction Authorization Act for Fiscal Years 1990 and 
1991 (division B of Public Law 101-189; 103 Stat. 1666) is repealed. 
TITLE XXIII—AIR FORCE 
SEC. 
2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND 
ACQUISITION PROJECTS. 
(a) INSIDE THE UNITED STATES.—^Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(1), and, in the case of the project described in section 
2304(b)(2), other amounts appropriated pursuant to authorizations 
enacted after this Act for that project, the Secretary of the Air 
Force may acquire real property and carry out military construction 
projects for the installations and locations inside the United States, 
and in the amounts, set forth in the following table: 
PUBLIC LAW 104-106—FEB. 10, 1996 
Air Force: Inside the United States 
110 STAT. 531 
state 
Installation or location 
Amount 
Alabama 
Alaska 
Arizona 
Arkansas 
California 
Colorado 
Delaware 
District of Columbia 
Florida 
Georgia 
Hawaii 
Idaho 
Illinois 
Kansas 
Louisiana 
Maryland 
Mississippi 
Missouri 
Nevada 
New Jersey 
New Mexico 
North Carolina 
North Dakota 
Ohio 
Oklahoma 
South Carolina 
South Dakota 
Tennessee 
Texas 
Utah 
Virginia 
Washington 
Wyoming ... 
Maxwell Air Force Base 
Eielson Air Force Base 
Elmendorf Air Force Base 
Tin City Long Range RADAR Site 
Davis-Monthan Air Force Base 
Luke Air Force Base 
Little Rock Air Force Base 
Beale Air Force Base 
Edwards Air Force Base 
Travis Air Force Base 
Vandenberg Air Force Base 
Buckley Air National Guard Base 
Peterson Air Force Base 
US Air Force Academy 
Dover Air Force Base 
Boiling Air Force Base 
Cape Canaveral Air Force Station 
Eglin Air Force Base 
Tyndall Air Force Base 
Moody Air Force Base 
Robins Air Force Base 
Hickam Air Force Base 
Mountain Home Air Force Base ... 
Scott Air Force Base 
McConnell Air Force Base 
Barksdale Air Force Base 
Andrews Air Force Base 
Columbus Air Force Base 
Keesler Air Force Base 
Whiteman Air Force Base 
Nellis Air Force Base 
McGuire Air Force Base 
Cannon Air Force Base 
Holloman Air Force Base 
Kirtland Air Force Base 
Pope Air Force Base 
Seymour Johnson Air Force Base . 
Grand Forks Air Force Base 
Minot Air Force Base 
Wright Patterson Air Force Base . 
Altus Air Force Base 
Tinker Air Force Base 
Charleston Air Force Base 
Shaw Air Force Base 
Ellsworth Air Force Base 
Arnold Air Force Base 
Dyess Air Force Base 
Goodfellow Air Force Base 
Kelly Air Force Base 
Laughlin Air Force Base 
Randolph Air Force Base 
Sheppard Air Force Base 
Hill Air Force Base 
Langley Air Force Base 
Fairchild Air Force Base 
McChord Air Force Base 
F.E. Warren Air Force Base 
$5,200,000 
$7,850,000 
$9,100,000 
$2,500,000 
$4,800,000 
$5,200,000 
$2,500,000 
$7,500,000 
$33,800,000 
$26,700,000 
$6,000,000 
$5,500,000 
$4,390,000 
$12,874,000 
$5,500,000 
$12,100,000 
$1,600,000 
$13,500,000 
$1,200,000 
$25,190,000 
$12,400,000 
$10,700,000 
$18,650,000 
$12,700,000 
$9,450,000 
$2,500,000 
$12,886,000 
$1,150,000 
$6,500,000 
$24,600,000 
$17,500,000 
$16,500,000 
$13,420,000 
$6,000,000 
$9,156,000 
$8,250,000 
$5,530,000 
$14,800,000 
$1,550,000 
$4,100,000 
$4,800,000 
$11,100,000 
$12,500,000 
$1,300,000 
$7,800,000 
$5,000,000 
$5,400,000 
$1,000,000 
$3,244,000 
$1,400,000 
$3,100,000 
$1,500,000 
$8,900,000 
$1,000,000 
$15,700,000 
$9,900,000 
$9,000,000 
110 STAT. 532 
PUBLIC LAW 104-106—FEB. 10, 1996 
Air Force: Inside the United States—Continued 
State 
CONUS Classified 
Installation or location 
Classified Location 
Total: 
Amount 
$700,000 
$504,690,000 
(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated 
pursuant 
to the authorization 
of appropriations 
in 
section 
2304(a)(2), the Secretary of the Air Force may acquire real property 
and may carry out military construction projects for the installations 
and locations outside the United States, and in the amounts, set 
forth in the following table: 
Air Force: Outside the United States 
Country 
Germany 
Greece 
Italy 
Turkey 
United Kingdom 
Overseas Classified ... 
Installation or location 
Spangdahlem Air Base 
Vogelweh Annex 
Araxos Radio Relay Site 
Aviano Air Base 
Ghedi Radio Relay Site 
Ankara Air Station 
Incirlik Air Base 
Lakenheath Royal Air Force Base 
Mildenhall Royal Air Force Base 
Classified Location 
Total: 
Amount 
$8,380,000 
$2,600,000 
$1,950,000 
$2,350,000 
$1,450,000 
$7,000,000 
$4,500,000 
$1,820,000 
$2,250,000 
$17,100,000 
$49,400,000 
SEC. 2302. FAMILY HOUSING. 
(a) CONSTRUCTION AND ACQUISITION.—^Using amounts appro-
priated pursuant to the authorization of appropriations in section 
2304(a)(5)(A), the Secretary of the Air Force may construct or 
acquire family housing units (including land acquisition) at the 
installations, for the purposes, and in the amounts set forth in 
the following table: 
Air Force: Family Housing 
State/Country 
Alaska 
Arizona 
Arkansas 
California 
Installation 
Elmendorf Air Force Base 
Davis-Monthan Air Force 
Base. 
Little Rock Air Force Base 
Beale Air Force Base 
Edwards Air Force Base ... 
Vandenberg Air Force 
Base. 
Vandenberg Air Force 
Base. 
Purpose 
Housing Office/ 
Maintenance 
Facility. 
80 units 
Replace 1 Gen-
eral Officer 
Quarters. 
Family Housing 
Office. 
127 units 
Family Housing 
Office. 
143 units 
Amount 
$3,000,000 
$9,498,000 
$210,000 
$842,000 
$20,750,000 
$900,000 
$20,200,000 
PUBLIC LAW 104-106—FEB. 10, 1996 
Air Force: Family Housing—Continued 
110 STAT. 533 
State/Country 
Colorado 
District of Colum-
bia. 
Florida 
Georgia 
Guam 
Idaho 
Kansas 
Louisiana 
Massachusetts 
Mississippi 
Missotui 
Nevada 
New Mexico 
North Carolina .... 
South Carolina .... 
Texas 
Turkey 
Washington 
Installation 
Peterson Air Force Base ... 
Boiling Air Force Base 
Eglin Air Force Base 
Eglin Auxiliary Field 9 
MacDill Air Force Base 
Patrick Air Force Base 
Tyndall Air Force Base 
Moody Air Force Base 
Robins Air Force Base 
Andersen Air Force Base .. 
Mountain Home Air Force 
Base. 
McConnell Air Force Base 
Barksdale Air Force Base . 
Hanscom Air Force Base .. 
Keesler Air Force Base 
Whiteman Air Force Base 
Nellis Air Force Base 
HoUoman Air Force Base .. 
Kirtland Air Force Base .... 
Pope Air Force Base 
Seymour Johnson Air 
Force Base. 
Shaw Air Force Base 
Dyess Air Force Base 
Lackland Air Force Base .. 
Sheppard Air Force Base .. 
Sheppard Air Force Base .. 
Incirlik Air Base 
McChord Air Force Base ... 
Purpose 
Family Housing 
Office. 
32 units 
Family Housing 
Office. 
Family Housing 
Office. 
Family Housing 
Office. 
70 units 
82 units 
1 Officer & 1 
General Officer 
Quarter. 
83 units 
Housing Mainte-
nance Facility. 
Housing Manage-
ment Facility. 
39 units 
62 units 
32 units 
98 units 
72 units 
102 units 
1 General Officer 
Quarters. 
105 units 
104 units 
1 General Officer 
Quarters. 
Housing Mainte-
nance Facility. 
Housing Mainte-
nance Facility. 
67 units 
Management Of-
fice. 
Housing Mainte-
nance Facility. 
50 units 
Total: 
Amount 
$570,000 
$4,100,000 
$500,000 
$880,000 
$646,000 
$7,947,000 
$9,800,000 
$513,000 
$9,800,000 
$1,700,000 
$844,000 
$5,193,000 
$10,299,000 
$4,900,000 
$9,300,000 
$9,948,000 
$16,357,000 
$225,000 
$11,000,000 
$9,984,000 
$204,000 
$715,000 
$580,000 
$6,200,000 
$500,000 
$600,000 
$10,146,000 
$9,504,000 
$198,355,000 
(b) 
PLANNING 
AND DESIGN.—Using amounts appropriated 
pursuant 
to the 
authorization 
of appropriations 
in 
section 
2304(a)(5)(A), the Secretary of the Air Force may carry out architec-
tural and engineering services and construction design activities 
with respect to the construction or improvement of miUtary family 
housing units in an amount not to exceed $8,989,000. 
SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS. 
Subject to section 2825 of title 10, United States Code, and 
using amounts appropriated pursuant to the authorization of appro-
priations in section 2304(a)(5)(A), the Secretary of the Air Force 
110 STAT. 534 
PUBLIC LAW 104-10&—FEB. 10, 1996 
may improve existing military family housing units in an amount 
not to exceed $90,959,000. 
SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE. 
(a) IN GENERAL.—Subject to subsection (c), funds are hereby 
authorized to be appropriated for fiscal years beginning after 
September 30, 1995, for military construction, land acquisition, 
and military family housing functions of the Department of the 
Air Force in the total amount of $1,735,086,000 as follows: 
(1) For military construction projects inside the United 
States authorized by section 2301(a), $504,690,000. 
(2) For military construction projects outside the United 
States authorized by section 2301(b), $49,400,000. 
(3) For unspecified minor construction projects authorized 
by section 2805 of title 10, United States Code, $9,030,000. 
(4) For architectural and engineering services and construc-
tion design under section 2807 of title 10, United States Code, 
$30,835,000. 
(5) For military housing functions: 
(A) For construction and acquisition, planning and 
design and improvement of military family housing and 
facilities, $298,303,000. 
(B) For support of military family housing (including 
the functions described in section 2833 of title 10, United 
States Code), $849,213,000. 
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.— 
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation author-
ized by law, the total cost of all projects carried out under section 
2301 of this Act may not exceed— 
(1) the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a); and 
(2) $5,400,000 (the balance of the amount authorized under 
section 2301(a) for the construction of a corrosion control facility 
at Tinker Air Force Base, Oklahoma). 
(c) ADJUSTMENT.—^The total amount authorized to be appro-
priated pursuant to paragraphs (1) through (5) of subsection (a) 
is the sum of the amounts authorized to be appropriated in such 
paragraphs, reduced by $6,385,000, which represents the combina-
tion of project savings resulting from favorable bids, reduced over-
head costs, and cancellations due to force structure changes. 
SEC. 2305. RETENTION OF ACCRUED INTEREST ON FUNDS DEPOSITED 
FOR CONSTRUCTION OF FAMILY HOUSING, SCOTT AIR 
FORCE BASE, ILLINOIS. 
(a) RETENTION OF INTEREST.—Section 2310 of the Military 
Construction Authorization Act for Fiscal Year 1994 (division B 
of Public Law 103-160; 107 Stat. 1874) is amended— 
(1) by redesignating subsection (b) as subsection (c); and 
(2) by inserting after subsection (a) the following new 
subsection: 
"(b) RETENTION OF INTEREST.—Interest accrued on the funds 
transferred to the County pursuant to subsection (a) shall be 
retained in the same account as the transferred funds and shall 
be available to the County for the same purpose as the transferred 
funds.". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 535 
(b) LIMITATION ON UNITS CONSTRUCTED.—Subsection (c) of such 
section, as redesignated by subsection (a)(1), is amended by adding 
at the end the following new sentence: "The number of units con-
structed using the transferred funds (and interest accrued on such 
funds) may not exceed the number of units of military family 
housing authorized for Scott Air Force Base in section 2302(a) 
of the Military Construction Authorization Act for Fiscal Year 
1993.". 
(c) EFFECT OF COMPLETION OF CONSTRUCTION.—Such section 
is further amended by adding at the end the following new 
subsection: 
"(d) COMPLETION OF CONSTRUCTION.—Upon the completion of 
the construction authorized by this section, all funds remaining 
from the funds transferred pursuant to subsection (a), and the 
remaining interest accrued on such funds, shall be deposited in 
the general fund of the Treasury of the United States.". 
(d) REPORTS ON ACCRUED INTEREST.—Such section is further 
amended by adding at the end the following new subsection: 
"(e) REPORTS ON ACCRUED INTEREST.—Not later than March 
1 of each year following a year in which funds available to the 
County under this section are used by the County for the purpose 
referred to in subsection (c), the Secretary shall submit to the 
congressional defense committees a report setting forth the amount 
of interest that accrued on such funds during the preceding year.". 
TITLE XXIV—DEFENSE AGENCIES 
SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND 
LAND ACQUISITION PROJECTS. 
(a) INSIDE THE UNITED STATES.—^Using amounts appropriated 
pursuant 
to the authorization 
of appropriations in section 
2405(a)(1), and, in the case of the project described in section 
2405(b)(2), other amounts appropriated pursuant to authorizations 
enacted after this Act for that project, the Secretary of Defense 
may acquire real property and carry out military construction 
projects for the installations and locations inside the United States, 
and in the amounts, set forth in the following table: 
Defense Agencies: Inside the United States 
Agency/State 
Ballistic Missile De-
fense Organiza-
tion 
Texas 
Defense Finance & 
Accounting Serv-
ice 
Ohio 
Defense Intel-
ligence Agency 
District of Columbia .. 
Defense Logistics 
Agency 
Alabama 
California 
Installation or location 
Fort Bliss 
Columbus Center 
Boiling Air Force Base 
Defense Distribution Anniston 
Defense Distribution Stockton 
Amount 
$13,600,000 
$72,403,000 
$498,000 
$3,550,000 
$15,000,000 
110 STAT. 536 
PUBLIC LAW 104-106—FEB. 10, 1996 
Defense Agencies: Inside the United States—Continued 
Agency/State 
Delaware 
Florida 
Louisiana 
New Jersey 
Pennsylvania 
Virginia 
Defense Mapping 
Agency 
Missouri 
Defense Medical 
Facility Office 
Alabama 
Arizona 
California 
Delaware 
Greorgia 
Louisiana 
Maryland 
Texas 
Virginia 
National Security 
Agency 
Maryland 
Office of the Sec-
retary of Defense 
Inside the United 
States 
Department of De-
fense Dependents 
Schools 
Alabama 
Georgia 
South Carolina 
Special Operations 
Command 
California 
Florida 
North Carolina 
Pennsylvania 
Virginia 
Installation or location 
DFSC, Point Mugu 
DFSC, Dover Air Force Base 
DFSC, Eglin Air Force Base 
DFSC, Barksdale Air Force Base 
DFSC, McGuire Air Force Base 
Defense Distribution New Cumberland— 
DDSP 
-
Defense Distribution Depot—DDNV 
Defense Mapping Agency Aerospace Center 
Maxwell Air Force Base 
Luke Air Force Base 
Fort Irwin 
Marine Corps Base, Camp Pendleton 
Vandenberg Air Force Base 
Dover Air Force Base 
Fort Benning 
Barksdale Air Force Base 
Bethesda Naval Hospital 
Walter Reed Army Institute of Research .. 
Fort Hood 
Lackland Air Force Base 
Northwest Naval Security Group Activity 
Fort Meade 
Classified location 
Maxwell Air Force Base 
Fort Benning 
Fort Jackson 
Camp Pendleton 
Eglin Air Force Base (Duke Field) 
Eglin Avixiliary Field 9 
Fort Bragg 
Olmstead Field, Harrisbxirg LAP 
Dam Neck 
Naval Amphibious Base, Little Creek 
Total: 
$364,602,000 
Amount 
$750,000 
$15,554,000 
$2,400,000 
$13,100,000 
$12,000,000 
$4,600,000 
$10,400,000 
$40,300,000 
$10,000,000 
$8,100,000 
$6,900,000 
$1,700,000 
$5,700,000 
$4,400,000 
$5,600,000 
$4,100,000 
$1,300,000 
$1,550,000 
$5,500,000 
$6,100,000 
$4,300,000 
$18,733,000 
$11,500,000 
$5,479,000 
$1,116,000 
$576,000 
$5,200,000 
$2,400,000 
$14,150,000 
$23,800,000 
$1,643,000 
$4,500,000 
$6,100,000 
(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated 
pursuant 
to the 
authorization 
of appropriations 
in 
section 
2405(a)(2), the Secretary of Defense may acquire real property 
and carry out mihtary construction projects for the installations 
and locations outside the United States, and in the amounts, set 
forth in the following table: 
PUBLIC LAW 104-106—FEB. 10, 1996 
Defense Agencies: Outside the United States 
110 STAT. 537 
Agency/Country 
Defense Logistics 
Agency 
Puerto Rico 
Spain 
Defense Medical 
Facility Office 
Italy 
Department of De-
fense Dependents 
Schools 
Germany 
Italy 
National Secvu-ity 
Agency 
United Kingdom 
Special Operations 
Command 
Guam 
Installation name 
Defense Fuel Support Point, Roosevelt 
Roads 
DFSC Rota 
Naval Support Activity, Naples 
Ramstein Air Force Base 
Naval Air Station, Sigonella 
Menwith Hill Station 
Naval Station, Guam 
Total: 
Amount 
$6,200,000 
$7,400,000 
$5,000,000 
$19,205,000 
$7,595,000 
$677,000 
$8,800,000 
$54,877,000 
SEC. 2402. MILITARY FAMILY HOUSING PRIVATE INVESTMENT. 
(a) AVAILABILITY OF FUNDS FOR INVESTMENT.—Of the amount 
authorized to be appropriated pursuant to section 2405(a)(ll)(A), 
$22,000,000 shall be available for crediting to the Department of 
Defense Family Housing Improvement Fund established by section 
2883(a)(1) of title 10, United States Code (as added by section 
2801 of this Act). 
(b) USE OF FUNDS.—^The Secretary of Defense may use funds 
credited to the Department of Defense Family Housing Improve-
ment Fund under subsection (a) to carry out any activities author-
ized by subchapter IV of chapter 169 of such title (as added by 
such section) with respect to military family housing. 
SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS. 
Subject to section 2825 of title 10, United States Code, and 
using amounts appropriated pursuant to the authorization of appro-
priations in section 2405(a)(ll)(A), the Secretary of Defense may 
improve existing military family housing units in an amount not 
to exceed $3,772,000. 
SEC. 2404. ENERGY CONSERVATION PROJECTS. 
Using amounts appropriated pursuant to the authorization of 
appropriations in section 2405(a)(9), the Secretary of Defense may 
carry out energy conservation projects under section 2865 of title 
10, United States Code. 
SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES. 
(a) IN GENERAL.—Funds are hereby authorized to be appro-
priated for fiscal years beginning after September 30, 1995, for 
military construction, land acquisition, and military family housing 
functions of the Department of Defense (other than the military 
departments), in the total amount of $4,629,491,000 as follows: 
110 STAT. 538 
PUBLIC LAW 104-106—FEB. 10, 1996 
(1) For military construction projects inside the United 
States authorized by section 2401(a), $329,599,000. 
(2) For mihtary construction projects outside the United 
States authorized by section 2401(b), $54,877,000. 
(3) For mihtary construction projects at Portsmouth Naval 
Hospital, Virginia, authorized by section 2401(a) of the Military 
Construction Authorization Act for Fiscal Years 1990 and 1991 
(division B of Public Law 101-189; 103 Stat. 1640), $47,900,000. 
(4) For military construction projects at Elmendorf Air 
Force Base, Alaska, hospital replacement, authorized by section 
, 
2401(a) of the Military Construction Authorization Act for Fis-
cal Year 1993 (division B of Public Law 102-484; 106 Stat. 
2599), $28,100,000. 
(5) For military construction projects at Walter Reed Army 
Institute of Research, Maryland, hospital replacement, author-
ized by section 2401(a) of the Military Construction Authoriza-
tion Act for Fiscal Year 1993 (division B of Public Law 102-
484; 106 Stat. 2599), $27,000,000. 
(6) For unspecified minor construction projects under sec-
tion 2805 of title 10, United States Code, $23,007,000. 
(7) For contingency construction projects of the Secretary 
of Defense under section 2804 of title 10, United States Code, 
$11,037,000. 
(8) For architectural and engineering services and construc-
tion design under section 2807 of title 10, United States Code, 
$68,837,000. 
(9) For energy conservation projects authorized by section 
2404, $40,000,000. 
(10) For base closure and realignment activities as author-
ized by the Defense Base Closure and Realignment Act of 
1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
2687 note), $3,897,892,000. 
(11) For military family housing functions: 
(A) For construction and acquisition and improvement 
of military family housing and facilities, $25,772,000. 
(B) For support of military housing (including functions 
described in section 2833 of title 10, United States Code), 
$40,467,000, of which not more than $24,874,000 may be 
obligated or expended for the leasing of military family 
housing units worldwide. 
(b) LIMITATION OF TOTAL COST OF CONSTRUCTION PROJECTS.— 
Notwithstanding the cost variation authorized by section 2853 of 
title 10, United States Code, and any other cost variations author-
ized by law, the total cost of all projects carried out under section 
2401 of this Act may not exceed— 
(1) the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a); and 
(2) $35,003,000 (the balance of the amount authorized 
under section 2401(a) for the construction of a center of the 
Defense Finance and Accounting Service at Columbus, Ohio). 
SEC. 2406. LIMITATIONS ON USE OF DEPARTMENT OF DEFENSE BASE 
CLOSURE ACCOUNT 1990. 
(a) SET ASIDE FOR 1995 ROUND.—Of the amounts appropriated 
pursuant 
to the authorization 
of appropriations in 
section 
2405(a)(10), $784,569,000 shall be available only for the purposes 
described in section 2905 of the Defense Base Closure and Realign-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 539 
ment Act of 1990 (part A of title XXIX of Public Law 101-510; 
10 U.S.C. 2687 note) with respect to military installations approved 
for closure or realignment in 1995. 
(b) CONSTRUCTION.—^Amounts appropriated pursuant to the 
authorization of appropriations in section 2405(a)(10) may not be 
obligated to carry out a construction project with respect to military 
installations approved for closure or realignment in 1995 until 
after the date on which the Secretary of Defense submits to Con-
gress a five-year program for executing the 1995 base realignment 
and closure plan. The limitation contained in this subsection shall 
not prohibit site surveys, environmental baseline surveys, environ-
mental analysis under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.), and planning and design work con-
ducted in anticipation of such construction. 
SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL 
YEAR 1995 PROJECTS. 
The table in section 2401 of the Military 
Construction 
Authorization Act for Fiscal Year 1995 (division B of Public Law 
103-337; 108 Stat. 3040), under the agency heading relating to 
Chemical Weapons and Munitions Destruction, is amended— 
(1) in the item relating to Pine Bluff Arsenal, Arkansas, 
by striking out "$3,000,000" in the amount column and insert-
ing in lieu thereof "$115,000,000"; and 
(2) in the item relating to Umatilla Army Depot, Oregon, 
by striking out "$12,000,000" in the amount column and insert-
ing in heu thereof "$186,000,000". 
SEC. 2408. REDUCTION IN AMOUNTS AUTHORIZED TO BE APPRO-
PRIATED 
FOR 
FISCAL 
YEAR 
1994 
CONTINGENCY 
CONSTRUCTION PROJECTS. 
Section 2403(a) of the Military Construction Authorization Act 
for Fiscal Year 1994 (division B of Public Law 103-160; 107 Stat. 
1876) is amended— 
(1) in the matter preceding paragraph (1), by striking out 
"$3,268,394,000" and inserting in lieu thereof "$3,260,263,000"; 
and 
(2) in paragraph (10), by striking out "$12,200,000" and 
inserting in Heu thereof "$4,069,000". 
TITLE XXV—NORTH ATLANTIC TREATY 
ORGANIZATION INFRASTRUCTURE 
SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISI-
TION PROJECTS. 
The Secretary of Defense may make contributions for the North 
Atlantic Treaty Organization Infrastructure program as provided 
in section 2806 of title 10, United States Code, in an amount 
not to exceed the sum of the amount authorized to be appropriated 
for this purpose in section 2502 and the amount collected from 
the North Atlantic Treaty Organization as a result of construction 
previously financed by the United States. 
SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO. 
Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 1995, for contributions by the Sec-
110 STAT. 540 
PUBLIC LAW 104-106—FEB. 10, 1996 
retary of Defense under section 2806 of title 10, United States 
Code, for the share of the United States of the cost of projects 
for the North Atlantic Treaty Organization Infrastructure program, 
as authorized by section 2501, in the amount of $161,000,000. 
TITLE XXVI—GUARD AND RESERVE 
FORCES FACILITIES 
SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND 
LAND ACQUISITION PROJECTS. 
There are authorized to be appropriated for fiscal years begin-
ning after September 30, 1995, for the costs of acquisition, architec-
tural and engineering services, and construction of facilities for 
the Guard and Reserve Forces, and for contributions therefor, under 
chapter 133 of title 10, United States Code (including the cost 
of acquisition of land for those facilities), the following amounts: 
(1) For the Department of the Army— 
(A) for the Army National Guard of the United States, 
$134,802,000; and 
(B) for the Army Reserve, $73,516,000. 
(2) For the Department of the Navy, for the Naval and 
Marine Corps Reserve, $19,055,000. 
(3) For the Department of the Air Force— 
(A) for the Air National Guard of the United States, 
$170,917,000; and 
(B) for the Air Force Reserve, $36,232,000. 
SEC. 2602. REDUCTION IN AMOUNT AUTHORIZED TO BE APPRO-
PRIATED FOR FISCAL YEAR 1994 AIR NATIONAL GUARD 
PROJECTS. 
Section 2601(3)(A) of the Military Construction Authorization 
Act for Fiscal Year 1994 (division B of Public Law 103-160; 107 
Stat. 1878) is amended by striking out "$236,341,000" and inserting 
in lieu thereof "$229,641,000". 
SEC. 2603. CORRECTION IN AUTHORIZED USES OF FUNDS FOR ARMY 
NATIONAL GUARD PROJECTS IN MISSISSIPPI. 
(a) IN GENERAL.—Subject to subsection (b), amounts appro-
priated pursuant to the authorization of appropriations in section 
2601(1)(A) of the Military Construction Authorization Act for Fiscal 
Year 1994 (division B of Public Law 103-160; 107 Stat. 1878) 
for the addition or alteration of Army National Guard Armories 
at various locations in the State of Mississippi shall be available 
for the addition, alteration, or new construction of armory facilities 
and an operation and maintenance shop facility (including the 
acquisition of land for such facilities) at various locations in the 
State of Mississippi. 
Reports. 
(b) NOTICE AND WAIT.—The amounts referred to in subsection 
(a) shall not be available for construction with respect to a facility 
referred to in that subsection until 21 days after the date on 
which the Secretary of the Army submits to Congress a report 
describing the construction (including any land acquisition) to be 
carried out with respect to the facility. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 541 
TITLE XXVII—EXPIRATION AND 
EXTENSION OF AUTHORIZATIONS 
SEC. 2701. EXPIRATION 
OF 
AUTHORIZATIONS 
AND 
AMOUNTS 
REQUIRED TO BE SPECIFIED BY LAW. 
(a) EXPIRATION OF AUTHORIZATIONS AFTER THREE YEARS.— 
Except as provided in subsection (b), all authorizations contained 
in titles XXI through XXVI for military construction projects, land 
acquisition, family housing projects and facilities, and contributions 
to the North Atlantic Treaty Organization Infrastructure program 
(and authorizations of appropriations therefor) shall expire on the 
later of— 
(1) October 1, 1998; or 
(2) the date of the enactment of an Act authorizing funds 
for military construction for fiscal year 1999. 
(b) EXCEPTION.—Subsection (a) shall not apply to authorizations 
for military construction projects, land acquisition, family housing 
projects and facilities, and contributions to the North Atlantic 
Treaty Organization Infrastructure program (and authorizations 
of appropriations therefor), for which appropriated funds have been 
obligated before the later of— 
(1) October 1, 1998; or 
(2) the date of the enactment of an Act authorizing funds 
for fiscal year 1999 for military construction projects, land 
acquisition, family housing projects and facilities, or contribu-
tions to the North Atlantic Treaty Organization Infrastructure 
program. 
SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL 
YEAR 1993 PROJECTS. 
(a) EXTENSIONS.—^Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1993 (division B 
of Public Law 102-484; 106 Stat. 2602), authorizations for the 
projects set forth in the tables in subsection (b), as provided in 
section 2101, 2301, or 2601 of that Act or in section 2201 of that 
Act (as amended by section 2206 of this Act), shall remain in 
effect until October 1, 1996, or the date of the enactment of an 
Act authorizing funds for military construction for fiscal year 1997, 
whichever is later. 
(b) TABLES.—The tables referred to in subsection (a) are as 
follows: 
Army: Extension of 1993 Project Authorizations 
State 
Arkansas 
Hawaii 
Installation or Loca-
tion 
Pine Bluff Arsenal 
Schofield Barracks 
Project 
Ammunition 
Demilitariza-
tion Support 
Facility. 
Add/Alter Sew-
age Treat-
ment Plant. 
Amount 
$15,000,000 
$17,500,000 
110 STAT. 542 
PUBLIC LAW 104-106—FEB. 10, 1996 
Navy: Extension of 1993 Project Authorizations 
State 
California 
Maryland 
Mississippi 
Virginia 
Installation or Loca-
tion 
Camp Pendleton Ma-
rine Corps Base. 
Patuxent River Naval 
Warfare Center. 
Meridian Naval Air 
Station. 
Hampton Roads 
Project 
Sewage Treat-
ment Plant 
Modifications. 
Large Anechoic 
Chamber, 
Phase I. 
Child Develop-
ment Center. 
Land Acquisi-
tion. 
Amount 
$19,740,000 
$60,990,000 
$1,100,000 
$4,500,000 
Air Force: Extension of 1993 Project Authorizations 
State 
Arkansas 
District of Columbia ... 
Mississippi 
North Carolina 
Virginia 
Guam 
Portugal 
Installation or Loca-
tion 
Little Rock Air Force 
Base. 
Boiling Air Force 
Base. 
Keesler Air Force 
Base. 
Pope Air Force Base .. 
Pope Air Force Base .. 
Langley Air Force 
Base. 
Andersen Air Base .... 
Lajes Field 
Lajes Field 
Project 
Fire Training 
Facility. 
Civil Engineer 
Complex. 
Alter Student 
Dormitory. 
Construct 
Bridge Road 
and Utilities. 
Munitions Stor-
age Complex. 
Base Engineer 
Complex. 
Landfill 
Water Wells 
Fire Training 
Facility. 
Amount 
$710,000 
$9,400,000 
$3,100,000 
$4,000,000 
$4,300,000 
$5,300,000 
$10,000,000 
$865,000 
$950,000 
Army National Guard: Extension of 1993 Project 
Authorizations 
state 
Alabama 
Oregon 
Pennsylvania 
Rhode Island 
Installation or Loca-
tion 
Tuscaloosa 
Union Springs 
La Grande 
La Grande 
Indiana 
North Kingston 
Project 
Armory 
Armory 
Organizational 
Maintenance 
Shop. 
Armory Addi-
tion. 
Armory 
Add/Alter Ar-
mory. 
Amount 
$2,273,000 
$813,000 
$1,220,000 
$3,049,000 
$1,700,000 
$3,330,000 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 543 
Army Reserve: Extension of 1993 Project Authorizations 
state 
West Virginia 
Installation or Loca-
tion 
Bluefield 
Clarksburg 
Grantville 
Lewisburg 
Weirton 
Project 
United States 
Army Re-
serve Center. 
United States 
Army Re-
serve Center. 
United States 
Army Re-
serve Center. 
United States 
Army Re-
serve Center. 
United States 
Army Re-
serve Center. 
Amount 
$1,921,000 
$1,566,000 
$2,785,000 
$1,631,000 
$3,481,000 
SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
1992 PROJECTS. 
(a) EXTENSIONS.—Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1992 (division B 
of Public Law 102-190; 105 Stat. 1535), authorizations for the 
projects set forth in the tables in subsection (b), as provided in 
section 2101 or 2601 of that Act, and extended by section 2702 
of the Military Construction Authorization Act for Fiscal Year 1995 
(division B of Public Law 103-337; 108 Stat. 3047), shall remain 
in effect until October 1, 1996, or the date of the enactment of 
an Act authorizing funds for military construction for fiscal year 
1997, whichever is later. 
(b) TABLES.—The tables referred to in subsection (a) are as 
follows: 
Army: Extension of 1992 Project Authorizations 
state 
Oregon 
Installation or Loca-
tion 
Umatilla Army Depot 
Umatilla Army Depot 
Project 
Ammunition 
Demilitariza-
tion Support 
Facility. 
Ammunition 
Demilitariza-
tion Utilities. 
Amount 
$3,600,000 
$7,500,000 
Army National Guard: Extension of 1992 Project 
Authorization 
State 
Ohio 
Installation or Loca-
tion 
Toledo 
Project 
Armory 
Amount 
$3,183,000 
Army Reserve: Extension of 1992 Project Authorization 
state 
Tennessee 
Installation or Loca-
tion 
Jackson 
Project 
Joint Training 
Facility. 
Amount 
$1,537,000 
110 STAT. 544 
PUBLIC LAW 104-106—FEB. 10, 1996 
TITLE XXVIII—GENERAL PROVISIONS 
Subtitle A—Military Housing Privatization 
Initiative 
SEC. 2801. ALTERNATIVE AUTHORITY 
FOR 
CONSTRUCTION AND 
IMPROVEMENT OF MILITARY HOUSING. 
(a) ALTERNATIVE AUTHORITY TO CONSTRUCT AND IMPROVE MILI-
TARY HOUSING.—(1) Chapter 169 of title 10, United States Code, 
is amended by adding at the end the following new subchapter: 
"SUBCHAPTER IV—ALTERNATIVE AUTHORITY FOR 
ACQUISITION AND IMPROVEMENT OF MILITARY HOUSING 
"Sec. 
"2871. Definitions. 
"2872. General authority. 
"2873. Direct loans and loan guarantees. 
"2874. Leasing of housing to be constructed. 
"2875. Investments in nongovernmental entities. 
"2876. Rental guarantees. 
"2877. Differential lease payments. 
"2878. Conveyance or lease of existing property and facilities. 
"2879. Interim leases. 
"2880. Unit size and type. 
"2881. Ancillary supporting facilities. 
"2882. Assignment of memhers of the armed forces to housing units. 
"2883. Department of Defense Housing Funds. 
"2884. Reports. 
"2885. Expiration of authority. 
"§ 2871. Definitions 
"In this subchapter: 
"(1) The term 'ancillary supporting facilities' means facili-
ties related to military housing units, including child care cen-
ters, day care centers, tot lots, community centers, housing 
offices, dining facilities, unit offices, and other similar facilities 
for the support of military housing. 
"(2) The term 'base closure law' means the following: 
"(A) Section 2687 of this title. 
"(B) Title II of the Defense Authorization Amendments 
and Base Closure and Realignment Act (Public Law 100-
526; 10 US.C. 2687 note). 
"(C) The Defense Base Closure and Realignment Act 
of 1990 (part A of title XXIX of Public Law 101-510; 
10 US.C. 2687 note). 
"(3) The term 'construction' means the construction of mili-
tary housing units and ancillary supporting facilities or the 
improvement or rehabilitation of existing units or ancillary 
supporting facilities. 
"(4) The term 'contract' includes any contract, lease, or 
other agreement entered into under the authority of this 
subchapter. 
"(5) The term 'Fund' means the Department of Defense 
Family Housing Improvement Fund or the Department of 
Defense Military Unaccompanied Housing Improvement Fund 
established under section 2883(a) of this title. 
"(6) The term 'military unaccompanied housing' means mili-
tary housing intended to be occupied by members of the armed 
forces serving a tour of duty unaccompanied by dependents. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 545 
"(7) The term 'United States' includes the Commonwealth 
of Puerto Rico. 
"§ 2872. General authority 
"In addition to any other authority provided under this chapter 
for the acquisition or construction of military family housing or 
military unaccompanied housing, the Secretary concerned may exer-
cise any authority or any combination of authorities provided under 
this subchapter in order to provide for the acquisition or construc-
tion by private persons of the following: 
"(1) Family housing units on or near military installations 
within the United States and its territories and possessions. 
"(2) Military unaccompanied housing units on or near such 
military installations. 
"§ 2873. Direct loans and loan guarantees 
"(a) DIRECT LOANS.—(1) Subject to subsection (c), the Secretary 
concerned may make direct loans to persons in the private sector 
in order to provide funds to such persons for the acquisition or 
construction of housing units that the Secretary determines are 
suitable for use as military family housing or as military unaccom-
panied housing. 
"(2) The Secretary concerned shall establish such terms and 
conditions with respect to loans made under this subsection as 
the Secretary considers appropriate to protect the interests of the 
United States, including the period and frequency for repayment 
of such loans and the obligations of the obligors on such loans 
upon default. 
"(b) LOAN GUARANTEES.—(1) Subject to subsection (c), the Sec-
retary concerned may guarantee a loan made to any person in 
the private sector if the proceeds of the loan are to be used by 
the person to acquire, or construct housing units that the Secretary 
determines are suitable for use as military family housing or as 
military unaccompanied housing. 
"(2) The amount of a guarantee on a loan that may be provided 
under paragraph (1) may not exceed the amount equal to the 
lesser of— 
"(A) the amount equal to 80 percent of the value of the 
project; or 
"(B) the amount of the outstanding principal of the loan. 
"(3) The Secretary concerned shall establish such terms and 
conditions with respect to guarantees of loans under this subsection 
as the Secretary considers appropriate to protect the interests of 
the United States, including the rights and obligations of obligors 
of such loans and the rights and obligations of the United States 
with respect to such guarantees. 
"(c) LIMITATION ON DIRECT LOAN AND GUARANTEE AUTHORITY.— 
Direct loans and loan guarantees may be made under this section 
only to the extent that appropriations of budget authority to cover 
their cost (as defined in section 502(5) of the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661a(5))) are made in advance, or authority 
is otherwise provided in appropriation Acts. If such appropriation 
or other authority is provided, there may be established a financing 
account (as defined in section 502(7) of such Act (2 U.S.C. 661a(7))), 
which shall be available for the disbursement of direct loans or 
payment of claims for payment on loan guarantees under this 
110 STAT. 546 
PUBLIC LAW 104-106—FEB. 10, 1996 
section and for all other cash flows to and from the Government 
as a result of direct loans and guarantees made under this section. 
"§ 2874. Leasing of housing to be constructed 
"(a) BUILD AND LEASE AUTHORIZED.—The Secretary concerned 
may enter into contracts for the lease of military family housing 
units or military unaccompanied housing units to be constructed 
under this subchapter. 
"(b) LEASE TERMS.—^A contract under this section may be for 
any period that the Secretary concerned determines appropriate 
and may provide for the owner of the leased property to operate 
and maintain the property. 
"§ 2875. Investments in nongovernmental entities 
"(a) INVESTMENTS AUTHORIZED.—^The Secretary concerned may 
make investments in nongovernmental entities carrying out projects 
for the acquisition or construction of housing units suitable for 
use as military family housing or as military unaccompanied 
housing. 
"(b) FORMS OF INVESTMENT.—^An investment under this section 
may take the form of an acquisition of a limited partnership interest 
by the United States, a purchase of stock or other equity 
instruments by the United States, a purchase of bonds or other 
debt instruments by the United States, or any combination of 
such forms of investment. 
"(c) LIMITATION ON VALUE OF INVESTMENT.—(1) The cash 
amount of an investment under this section in a nongovernmental 
entity may not exceed an amount equal to 33 V
a percent of the 
capital cost (as determined by the Secretary concerned) of the 
project or projects that the entity proposes to carry out under 
this section with the investment. 
"(2) If the Secretary concerned conveys land or facilities to 
a nongovernmental entity as all or part of an investment in the 
entity under this section, the total value of the investment by 
the Secretary under this section may not exceed an amount equal 
to 45 percent of the capital cost (as determined by the Secretary) 
of the project or projects that the entity proposes to carry out 
under this section with the investment. 
"(3) In this subsection, the term 'capital cost', with respect 
to a project for the acquisition or construction of housing, means 
the total amount of the costs included in the basis of the housing 
for Federal income tax purposes. 
"(d) COLLATERAL INCENTIVE AGREEMENTS.—The Secretary con-
cerned shall enter into collateral incentive agreements with non-
governmental entities in which the Secretary makes an investment 
under this section to ensure that a suitable preference will be 
afforded members of the armed forces and their dependents in 
the lease or purchase, as the case may be, of a reasonable number 
of the housing units covered by the investment. 
"§ 2876. Rental guarantees 
"The Secretary concerned may enter into agreements with pri-
vate persons that acquire or construct military family housing units 
or military unaccompanied housing units under this subchapter 
in order to assure— 
"(1) the occupancy of such units at levels specified in the 
agreements; or 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 547 
"(2) rental income derived from rental of such units at 
levels specified in the agreements. 
"§ 2877. Differential lease payments 
"Pursuant to an agreement entered into by the Secretary con-
cerned and a private lessor of military family housing or military 
unaccompanied housing to members of the armed forces, the Sec-
retary may pay the lessor an amount in addition to the rental 
payments for the housing made by the members as the Secretary 
determines appropriate to encourage the lessor to make the housing 
available to members of the armed forces as military family housing 
or as military unaccompanied housing. 
"§2878. Conveyance or lease of existing property and 
facilities 
"(a) CONVEYANCE OR LEASE AUTHORIZED.—The Secretary con-
cerned may convey or lease property or facilities (including ancillary 
supporting facilities) to private persons for purposes of using the 
proceeds of such conveyance or lease to carry out activities under 
this subchapter. 
"(b) INAPPLICABILITY TO PROPERTY AT INSTALLATION APPROVED 
FOR CLOSURE.—^The authority of this section does not apply to 
property or facilities located on or near a military installation 
approved for closure under a base closure law. 
"(c) TERMS AND CONDITIONS.—(1) The conveyance or lease of 
property or facilities under this section shall be for such consider-
ation and upon such terms and conditions as the Secretary con-
cerned considers appropriate for the purposes of this subchapter 
and to protect the interests of the United States. 
"(2) As part or all of the consideration for a conveyance or 
lease under this section, the purchaser or lessor (as the case may 
be) shall enter into an agreement with the Secretary to ensure 
that a suitable preference will be afforded members of the armed 
forces and their dependents in the lease or sublease of a reasonable 
number of the housing units covered by the conveyance or lease, 
as the case may be, or in the lease of other suitable housing 
units made available by the purchaser or lessee. 
"(d) INAPPLICABILITY OF CERTAIN PROPERTY MANAGEMENT 
LAWS.—^The conveyance or lease of property or facilities under 
this section shall not be subject to the following provisions of 
law: 
"(1) Section 2667 of this title. 
"(2) The Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 471 et seq.). 
"(3) Section 321 of the Act of June 30, 1932 (commonly 
known as the Economy Act) (40 U.S.C. 303b). 
"(4) Section 501 of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11401). 
""12879. Interim leases 
"Pending completion of a project to acquire or construct military 
family housing units or military unaccompanied housing units 
under this subchapter, the Secretary concerned may provide for 
the interim lease of such units of the project as are complete. 
The term of a lease under this section may not extend beyond 
the date of the completion of the project concerned. 
110 STAT. 548 
PUBLIC LAW 104-106—FEB. 10, 1996 
"§ 2880. Unit size and type 
"(a) CONFORMITY WITH SIMILAR HOUSING UNITS IN LOCALE.— 
The Secretary concerned shall ensure that the room patterns and 
floor areas of military family housing units and military unaccom-
panied housing units acquired or constructed under this subchapter 
are generally comparable to the room patterns and floor areas 
of similar housing units in the locality concerned. 
"(b) 
INAPPLICABILITY OF 
LIMITATIONS ON 
SPACE 
BY PAY 
GRADE.—(1) Section 2826 of this title shall not apply to military 
family housing units acquired or constructed under this subchapter. 
"(2) The regulations prescribed under section 2856 of this title 
shall not apply to any military unaccompanied housing unit 
acquired or constructed under this subchapter unless the unit is 
located on a military installation. 
"§ 2881. Ancillary supporting facilities 
"Any project for the acquisition or construction of military 
family housing units or military unaccompanied housing units 
under this subchapter may include the acquisition or construction 
of ancillary supporting facilities for the housing units concerned. 
^§ 2882. Assignment of members of the armed forces to hous-
ing units 
"(a) IN GENERAL.—^The Secretary concerned may assign mem-
bers of the armed forces to housing units acquired or constructed 
under this subchapter. 
"(b) 
EFFECT OF CERTAIN ASSIGNMENTS ON ENTITLEMENT TO 
HOUSING ALLOWANCES.—(1) Except as provided in paragraph (2), 
housing referred to in subsection (a) shall be considered as quarters 
of the United States or a housing facility under the jurisdiction 
of a uniformed service for purposes of section 403(b) of title 37. 
"(2) A member of the armed forces who is assigned in accord-
ance with subsection (a) to a housing unit not owned or leased 
by the United States shall be entitled to a basic allowance for 
quarters under section 403 of title 37 and, if in a high housing 
cost area, a variable housing allowance under section 403a of that 
title. 
"(c) LEASE PAYMENTS THROUGH PAY ALLOTMENTS.—^The Sec-
retary concerned may require members of the armed forces who 
lease housing in housing units acquired or constructed under this 
subchapter to make lease payments for such housing pursuant 
to allotments of the pay of such members under section 701 of 
title 37. 
"§ 2883. Department of Defense Housing Funds 
"(a) ESTABLISHMENT.—There are hereby established on the 
books of the Treasury the following accounts: 
"(1) The Department of Defense Family Housing Improve-
ment Fund. 
"(2) The Department of Defense Military Unaccompanied 
Housing Improvement Fund. 
"(b) COMMINGLING OF FUNDS PROHIBITED.—(1) The Secretary 
of Defense shall administer each Fund separately. 
"(2) Amounts in the Department of Defense Family Housing 
Improvement Fund may be used only to carry out activities under 
this subchapter with respect to military family housing. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 549 
"(3) Amounts in the Department of Defense Military Unaccom-
panied Housing Improvement Fund may be used only to carry 
out activities under this subchapter with respect to military 
unaccompanied housing. 
"(c) CREDITS TO FUNDS.—(1) There shall be credited to the 
Department of Defense Family Housing Improvement Fund the 
following: 
"(A) Amounts authorized for and appropriated to that Fund. 
"(B) Subject to subsection (f), any amounts that the Sec-
retary of Defense transfers, in such amounts as provided in 
appropriation Acts, to that Fund from amounts authorized and 
appropriated to the Department of Defense for the acquisition 
or construction of military family housing. 
"(C) Proceeds from the conveyance or lease of property 
or facilities under section 2878 of this title for the purpose 
of carrying out activities under this subchapter with respect 
to military family housing. 
"(D) Income derived from any activities under this sub-
chapter with respect to military family housing, including 
interest on loans made under section 2873 of this title, income 
and gains realized from investments under section 2875 of 
this title, and any return of capital invested as part of such 
investments. 
"(2) There shall be credited to the Department of Defense 
Military Unaccompanied Housing Improvement Fund the following: 
"(A) Amounts authorized for and appropriated to that Fund. 
"(B) Subject to subsection (f), any amounts that the Sec-
retary of Defense transfers, in such amounts as provided in 
appropriation Acts, to that Fund from amounts authorized and 
appropriated to the Department of Defense for the acquisition 
or construction of military unaccompanied housing. 
"(C) Proceeds from the conveyance or lease of property 
or facilities under section 2878 of this title for the purpose 
of carrying out activities under this subchapter with respect 
to military unaccompanied housing. 
"(D) Income derived from any activities under this sub-
chapter with respect to military unaccompanied housing, 
including interest on loans made under section 2873 of this 
title, income and gains realized from investments under section 
2875 of this title, and any return of capital invested as part 
of such investments. 
"(d) USE OF AMOUNTS IN FUNDS.—(1) In such amounts as 
provided in appropriation Acts and except as provided in subsection 
(e), the Secretary of Defense may use amounts in the Department 
of Defense Family Housing Improvement Fund to carry out activi-
ties under this subchapter with respect to military family housing, 
including activities required in connection with the planning, execu-
tion, and administration of contracts entered into under the author-
ity of this subchapter. 
"(2) In such amounts as provided in appropriation Acts and 
except as provided in subsection (e), the Secretary of Defense may 
use amounts in the Department of Defense Military Unaccompanied 
Housing Improvement Fund to carry out activities under this sub-
chapter with respect to military unaccompanied housing, including 
activities required in connection with the planning, execution, and 
administration of contracts entered into under the authority of 
this subchapter. 
110 STAT. 550 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(3) Amounts made available under this subsection shall remain 
available until expended. The Secretary of Defense may transfer 
amounts made available under this subsection to the Secretaries 
of the military departments to permit such Secretaries to carry 
out the activities for which such amounts may be used. 
"(e) LIMITATION ON OBLIGATIONS.—The Secretary may not incur 
an obligation under a contract or other agreement entered into 
under this subchapter in excess of the unobligated balance, at 
the time the contract is entered into, of the Fund required to 
be used to satisfy the obligation. 
"(f) 
NOTIFICATION REQUIRED FOR TRANSFERS.—^A transfer 
of 
appropriated amounts to a Fund under paragraph (1)(B) or (2)(B) 
of subsection (c) may be made only after the end of the 30-day 
period beginning on the date the Secretary of Defense submits 
written notice of, and justification for, the transfer to the appro-
priate committees of Congress. 
"(g) LIMITATION ON AMOUNT OF BUDGET AUTHORITY.—The total 
value in budget authority of all contracts and investments under-
taken using the authorities provided in this subchapter shall not 
exceed— 
"(1) $850,000,000 for the acquisition or construction of mili-
tary family housing; and 
"(2) $150,000,000 for the acquisition or construction of mili-
tary unaccompanied housing. 
"§2884. Reports 
"(a) PROJECT REPORTS.—(1) The Secretary of Defense shall 
transmit to the appropriate committees of Congress a report 
describing— 
"(A) each contract for the acquisition or construction of 
family housing units or unaccompanied housing units that the 
Secretary proposes to solicit under this subchapter; and 
"(B) each conveyance or lease proposed under section 2878 
of this title. 
"(2) The report shall describe the proposed contract, conveyance, 
or lease and the intended method of participation of the United 
States in the contract, conveyance, or lease and provide a justifica-
tion of such method of participation. The report shall be submitted 
not later than 30 days before the date on which the Secretary 
issues the contract solicitation or offers the conveyance or lease. 
"(b) ANNUAL REPORTS.—The Secretary of Defense shall include 
each year in the materials that the Secretary submits to Congress 
in support of the budget submitted by the President pursuant 
to section 1105 of title 31 the following: 
"(1) A report on the expenditures and receipts during the 
preceding fiscal year covering the Funds established under 
section 2883 of this title. 
"(2) A methodology for evaluating the extent and effective-
ness of the use of the authorities under this subchapter during 
such preceding fiscal year. 
"(3) A description of the objectives of the Department of 
Defense for providing military family housing and military 
unaccompanied housing for members of the armed forces. 
PUBLIC LAW 104-10&—FEB. 10, 1996 
110 STAT. 551 
"§ 2885. Expiration of authority 
"The authority to enter into a contract under this subchapter 
shall expire five years after the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 1996.". 
(2) The table of subchapters at the beginning of such chapter 
is amended by inserting after the item relating to subchapter III 
the following new item: 
"IV. Alternative Authority for Acquisition and Improvement of Military 
Housing 
2871". 
(b) FINAL REPORT.—Not later than March 1, 2000, the Secretary 
10 USC 2884 
of Defense shall submit to the congressional defense committees note. 
a report on the use by the Secretary of Defense and the Secretaries 
of the military departments of the authorities provided by sub-
chapter IV of chapter 169 of title 10, United States Code, as added 
by subsection (a). The report shall assess the effectiveness of such 
authority in providing for the construction and improvement of 
military family housing and military unaccompanied housing. 
SEC. 2802. EXPANSION OF AUTHORITY FOR LIMITED PARTNERSfflPS 
FOR DEVELOPMENT OF MILITARY FAMILY HOUSING. 
(a) PARTICIPATION OF OTHER MILITARY DEPARTMENTS.—(1) Sub-
section (a)(1) of section 2837 of title 10, United States Code, is 
amended by striking out "of the naval service" and inserting in 
lieu thereof "of the armed forces". 
(2) Subsection (b)(1) of such section is amended by striking 
out "of the naval service" and inserting in lieu thereof "of the 
armed forces". 
(b) ADMINISTRATION.—(1) Subsection (a)(1) of such section is 
further amended by striking out "the Secretary of the Navy" in 
the first sentence and inserting in lieu thereof "the Secretary of 
a military department". 
(2) Subsections (a)(2), (b), (c), (g), and (h) of such section are 
amended by striking out "Secretary" each place it appears and 
inserting in lieu thereof "Secretary concerned". 
(c) ACCOUNT.—Subsection (d) of such section is amended to 
read as follows: 
"(d) ACCOUNT.—(1) There is hereby established on the books Nomenclature. 
of the Treasury an account to be known as the 'Defense Housing 
Investment Account'. 
"(2) There shall be deposited into the Account— 
"(A) such funds as may be authorized for and appropriated 
to the Account; 
"(B) any proceeds received by the Secretary concerned from 
the repayment of investments or profits on investments of 
the Secretary under subsection (a); and 
"(C) any unobligated balances which remain in the Navy 
Housing Investment Account as of the date of the enactment 
of the National Defense Authorization Act for Fiscal Year 1996. 
"(3) From such amounts as are provided in advance in appro-
priation Acts, funds in the Account shall be available to the Sec-
retaries concerned in amounts determined by the Secretary of 
Defense for contracts, investments, and expenses necessary for the 
implementation of this section. 
"(4) The Secretary concerned may not enter into a contract 
in connection with a limited partnership under subsection (a) or 
a collateral incentive agreement under subsection (b) unless a suffi-
cient amount of the unobligated balance of the funds in the Account 
110 STAT. 552 
PUBLIC LAW 104-lOfr-FEB. 10, 1996 
is available to the Secretary, as of the time the contract is entered 
into, to satisfy the total obligations to be incurred by the United 
States under the contract.". 
(d) TERMINATION OF NAVY HOUSING INVESTMENT BOARD.—Such 
section is further amended— 
(1) by striking out subsection (e); and 
(2) in subsection (h)— 
(A) by striking out "AUTHORITIES" in the subsection 
heading and inserting in lieu thereof "AUTHORITY"; 
(B) by striking out "(1)"; and 
(C) by striking out paragraph (2). 
(e) REPORT.—Subsection (f) of such section is amended— 
(1) by striking out "the Secretary carries out activities" 
and inserting in lieu thereof "activities are carried out"; and 
(2) by striking out "the Secretary shall" and inserting in 
lieu thereof "the Secretaries concerned shall jointly". 
(f) EXTENSION OF AUTHORITY.—Subsection (h) of such section 
is further amended by striking out "September 30, 1999" and insert-
ing in lieu thereof "September 30, 2000". 
(g) CONFORMING AMENDMENT.—Subsection (g) of such section 
is further amended by striking out "NAVY" in the subsection 
heading. 
Subtitle B—Other Military Construction 
Program and Military Family Housing 
Changes 
SEC. 2811. SPECIAL 
THRESHOLD 
FOR 
UNSPECIFIED 
MINOR 
CONSTRUCTION PROJECTS TO CORRECT LIFE, HEALTH, 
OR SAFETY DEFICIENCIES. 
(a) SPECIAL THRESHOLD.—Section 2805 of title 10, United States 
Code, is amended— 
(1) in subsection (a)(1), by adding at the end the following 
new sentence: "However, if the military construction project 
is intended solely to correct a deficiency that is life-threatening, 
health-threatening, or safety-threatening, a minor military 
construction project may have an approved cost equal to or 
less than $3,000,000."; and 
(2) in subsection (c)(1), by striking out "not more than 
$300,000." and inserting in lieu thereof "not more than— 
"(A) $1,000,000, in the case of an unspecified military 
construction project intended solely to correct a deficiency that 
is life-threatening, health-threatening, or safety-threatening; 
or 
"(B) $300,000, in the case of any other unspecified military 
construction project.". 
(b) TECHNICAL AMENDMENT.—Section 2861(b)(6) of such title 
is amended by striking out "section 2805(a)(2)" and inserting in 
lieu thereof "section 2805(a)(1)". 
SEC. 2812. CLARIFICATION 
OF 
SCOPE 
OF UNSPECIFIED 
MINOR 
CONSTRUCTION AUTHORITY. 
Section 2805(a)(1) of title 10, United States Code, as amended 
by section 2811 of this Act, is further amended by striking out 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 553 
"(1) that is for a single undertaking at a military installation, 
and (2)" in the second sentence. 
SEC. 2813. TEMPORARY AUTHORITY TO WAIVE NET FLOOR AREA 
LIMITATION FOR FAMILY HOUSING ACQUIRED IN LIEU 
OF CONSTRUCTION. 
Section 2824(c) of title 10, United States Code, is amended 
by adding at the end the following new sentence: "The Secretary 
concerned may waive the limitation set forth in the preceding 
sentence to family housing units acquired under this section during 
the five-year period beginning on the date of the enactment of 
the National Defense Authorization Act for Fiscal Year 1996.". 
SEC. 2814. REESTABLISHMENT OF AUTHORITY TO WAIVE NET FLOOR 
AREA LIMITATION ON ACQUISITION BY PURCHASE OF 
CERTAIN MILITARY FAMILY HOUSING. 
Section 2826(e) of title 10, United States Code, is amended 
by striking out the second sentence. 
SEC. 2815. TEMPORARY AUTHORITY TO WAIVE LIMITATIONS ON 
SPACE BY PAY GRADE FOR MILITARY FAMILY HOUSING 
UNITS. 
Section 2826 of title 10, United States Code, is amended by 
adding at the end the following new subsection: 
"(i)(l) The Secretary concerned may waive the provisions of 
subsection (a) with respect to military family housing units con-
structed, acquired, or improved during the five-year period begin-
ning on the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1996. 
"(2) The total number of military family housing units con-
structed, acquired, or improved during any fiscal year in the period 
referred to in paragraph (1) shall be the total number of such 
units authorized by law for that fiscal year.". 
SEC. 2816. RENTAL OF FAMILY HOUSING IN FOREIGN COUNTRIES. 
Section 2828(e) of title 10, United States Code, is amended— 
(1) in paragraph (1)— 
(A) by striking out "300 units" in the first sentence 
and inserting in lieu thereof "450 units"; and 
(B) by striking out "220 such units" in the second 
sentence and inserting in lieu thereof "350 such units"; 
and 
(2) in paragraph (2), by striking out "300 units" and insert-
ing in lieu thereof "450-units". 
SEC, 2817. CLARIFICATION OF SCOPE OF REPORT REQUIREMENT ON 
COST INCREASES UNDER CONTRACTS FOR MILITARY 
FAMILY HOUSING CONSTRUCTION. 
Subsection (d) of section 2853 of title 10, United States Code, 
is amended to read as follows: 
"(d) The limitation on cost increases in subsection (a) does 
not apply to the settlement of a contractor claim under a contract.". 
SEC. 2818. AUTHORITY TO CONVEY DAMAGED OR DETERIORATED 
MILITARY FAMILY HOUSING. 
(a) AUTHORITY.—(1) Subchapter III of chapter 169 of title 10, 
United States Code, is amended by inserting after section 2854 
the following new section: 
29-194 O - 96 - 19 : QL 3 Part 1 
110 STAT. 554 
PUBLIC LAW 104-106—FEB. 10, 1996 
"§ 2854a. Conveyance of damaged or deteriorated military 
family housing; use of proceeds 
"(a) AUTHORITY TO CONVEY.—(1) The Secretary concerned may 
convey any family housing faciUty that, due to damage or deteriora-
tion, is in a condition that is uneconomical to repair. Any conveyance 
of a family housing facility under this section may include a convey-
ance of the real property associated with the facility conveyed. 
"(2) The authority of this section does not apply to family 
housing facilities located at military installations approved for clo-
sure under a base closure law or family housing facilities located 
at an installation outside the United States at which the Secretary 
of Defense terminates operations. 
"(3) The aggregate total value of the family housing facilities 
conveyed by the Department of Defense under the authority in 
this subsection in any fiscal year may not exceed $5,000,000. 
"(4) For purposes of this subsection, a family housing facility 
is in a condition that is uneconomical to repair if the cost of 
the necessary repairs for the facility would exceed the amount 
equal to 70 percent of the cost of constructing a family housing 
facility to replace such facility. 
"(b) CONSIDERATION.—(1) As consideration for the conveyance 
of a family housing facility under subsection (a), the person to 
whom the facility is conveyed shall pay the United States an amount 
equal to the fair market value of the facility conveyed, including 
any real property conveyed along with the facility. 
"(2) The Secretary concerned shall determine the fair market 
value of any family housing facility and associated real property 
that is conveyed under subsection (a). Such determination shall 
be final. 
"(c) NOTICE AND WAIT REQUIREMENTS.—The Secretary con-
cerned may not enter into an agreement to convey a family housing 
facility under this section until— 
"(1) the Secretary submits to the appropriate committees 
of Congress, in writing, a justification for the conveyance under 
the agreement, including— 
"(A) an estimate of the consideration to be provided 
the United States under the agreement; 
"(B) an estimate of the cost of repairing the family 
housing facility to be conveyed; and 
"(C) an estimate of the cost of replacing the family 
housing facility to be conveyed; and 
"(2) a period of 21 calendar days has elapsed after the 
date on which the justification is received by the committees. 
"(d) INAPPLICABILITY OF CERTAIN PROPERTY DISPOSAL LAWS.— 
The following provisions of law do not apply to the conveyance 
of a family housing facility under this section: 
"(1) The Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 471 et seq.). 
"(2) Title V of the Stewart B. McKinney Homeless Assist-
ance Act (42 U.S.C. 11411 et seq.). 
"(e) USE OF PROCEEDS.—(1) The proceeds of any conveyance 
of a family housing facility under this section shall be credited 
to the appropriate fund established under section 2883 of this 
title and shall be available— 
"(A) to construct family housing units to replace the family 
housing facility conveyed under this section, but only to the 
extent that the number of units constructed with such proceeds 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 555 
does not exceed the number of units of military family housing 
of the facility conveyed; 
"(B) to repair or restore existing military family housing; 
and 
"(C) to reimburse the Secretary concerned for the costs 
incurred by the Secretary in conveying the family housing 
facility. 
"(2) Notwithstanding section 2883(d) of this title, proceeds 
derived from a conveyance of a family housing facility under this 
section shall be available under paragraph (1) without any further 
appropriation. 
"(f) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of any family housing facility conveyed under this sec-
tion, including any real property associated with such facility, shall 
be determined by such means as the Secretary concerned considers 
satisfactory, including by survey in the case of real property. 
"(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary con-
cerned may require such additional terms and conditions in connec-
tion with the conveyance of family housing facilities under this 
section as the Secretary considers appropriate to protect the 
interests of the United States.". 
(2) The table of sections at the beginning of such subchapter 
is amended by inserting after the item relating to section 2854 
the following new item: 
"2854a. Conveyance of damaged or deteriorated military family housing; use of pro-
ceeds.". 
(b) CONFORMING AMENDMENT.—Section 204(h) of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 485(h)) 
is amended— 
(1) by redesignating paragraph (4) as paragraph (5); and 
(2) by inserting after paragraph (3) the following new para-
graph (4): 
"(4) This subsection does not apply to damaged or deteriorated 
military family housing facilities conveyed under section 2854a 
of title 10, United States Code.". 
SEC. 2819. ENERGY AND WATER CONSERVATION SAVINGS FOR THE 
DEPARTMENT OF DEFENSE. 
(a) INCLUSION OF WATER EFFICIENT MAINTENANCE IN ENERGY 
PERFORMANCE PLAN.—Paragraph (3) of section 2865(a) of title 10, 
United States Code, is amended by striking out "energy efficient 
maintenance" and inserting in lieu thereof "energy efficient mainte-
nance or water efficient maintenance". 
(b) 
SCOPE 
OF TERM.—Paragraph (4) of such section is 
amended— 
(1) in the matter preceding subparagraph (A), by striking 
out "'energy efficient maintenance'" and inserting in lieu 
thereof "'energy efficient 
maintenance or water 
efficient 
maintenance'"; 
(2) in subparagraph (A), by striking out "systems or indus-
trial processes," in the matter preceding clause (i) and inserting 
in lieu thereof "systems, industrial processes, or water efficiency 
applications,"; and 
(3) in subparagraph (B), by inserting "or water cost savings" 
before the period at the end. 
110 STAT. 556 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 2820. EXTENSION OF AUTHORITY TO ENTER INTO LEASES OF 
LAND FOR SPECIAL OPERATIONS ACTIVITIES. 
(a) EXTENSION OF AUTHORITY.—Subsection (d) of section 2680 
of title 10, United States Code, is amended in the first sentence 
by striking out "September 30, 1995" and inserting in lieu thereof 
"September 30, 2000". 
(b) REPORTING REQUIREMENT.—Such section is further amended 
by adding at the end the following new subsection: 
"(e) REPORTS.—^Not later than March 1 of each year, the Sec-
retary of Defense shall submit to the Committee on the Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report that— 
"(1) identifies each leasehold interest acquired during the 
previous fiscal year under subsection (a); and 
"(2) contains a discussion of each project for the construc-
tion or modification of facilities carried out pursuant to sub-
section (c) during such fiscal year.". 
(c) CONFORMING REPEAL.—Section 2863 of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
102-190; 10 U.S.C. 2680 note) is amended by striking out subsection 
(b). 
SEC. 2821. DISPOSITION OF AMOUNTS RECOVERED AS A RESULT OF 
DAMAGE TO REAL PROPERTY. 
(a) I N GENERAL.—Chapter 165 of title 10, United States Code, 
is amended by inserting after section 2781 the following new section: 
''§2782. D a m a g e to real property: disposition of 
amounts 
recovered 
"Except as provided in section 2775 of this title, amounts recov-
ered for damage caused to real property under the jurisdiction 
of the Secretary of a military department or, with respect to the 
Defense Agencies, under the jurisdiction of the Secretary of Defense 
shall be credited to the account available for the repair or replace-
ment of the real property at the time of recovery. In such amounts 
as are provided in advance in appropriation Acts, amounts so cred-
ited shall be available for use for the same purposes and under 
the same circumstances as other funds in the account.". 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating 
to section 2781 the following new item: 
"2782. Damage to real property: disposition of amounts recovered.". 
Military Housing 
SEC. 2822. PILOT PROGRAM TO PROVIDE INTEREST RATE BUY DOWN 
Assistance Act of 
AUTHORITY ON LOANS FOR HOUSING WITHIN HOUSING 
^^^^ 
SHORTAGE AREAS AT MILITARY INSTALLATIONS. 
38 use 101 note. 
(a) SHORT TiTLE.—^This section may be cited as the "Military 
Housing Assistance Act of 1995". 
(b) MORTGAGE ASSISTANCE PAYMENT AUTHORITY OF THE SEC-
RETARY OF VETERANS AFFAIRS.—(1) Chapter 37 of title 38, United 
States Code, is amended by inserting after 
section 3707 
the 
following: 
"§3708. Authority to b u y d o w n interest rates: pilot program 
"(a) In order to enable the purchase of housing in areas where 
the supply of suitable military housing is inadequate, the Secretary 
may conduct a pilot program under which the Secretary may make 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 557 
periodic or lump sum assistance payments on behalf of an eligible 
veteran for the purpose of buying down the interest rate on a 
loan to that veteran that is guaranteed under this chapter for 
a purpose described in paragraph (1), (6), or (10) of section 3710(a) 
of this title. 
"(b) An individual is an eligible veteran for the purposes of 
this section if— 
"(1) the individual is a veteran, as defined in section 
3701(b)(4) of this title; 
"(2) the individual submits an application for a loan guaran-
teed under this chapter within one year of an assignment 
of the individual to duty at a military installation in the United 
States designated by the Secretary of Defense as a housing 
shortage area; 
"(3) at the time the loan referred to in subsection (a) 
is made, the individual is an enlisted member, warrant officer, 
or an officer (other than a warrant officer) at a pay grade 
of 0-3 or below; 
"(4) the individual has not previously used any of the 
individual's entitlement to housing loan benefits under this 
chapter; and 
"(5) the individual receives comprehensive prepurchase 
counseling from the Secretary (or the designee of the Secretary) 
before making application for a loan guaranteed under this 
chapter. 
"(c) Loans with respect to which the Secretary may exercise 
the buy down authority under subsection (a) shall— 
"(1) provide for a buy down period of not more than three 
years in duration; 
"(2) specify the maximum and likely amounts of increases 
in mortgage payments that the loans would require; and 
"(3) be subject to such other terms and conditions as the 
Secretary may prescribe by regulation. 
"(d) The Secretary shall promulgate underwriting standards 
for loans for which the interest rate assistance payments may 
be made under subsection (a). Such standards shall be based on 
the interest rate for the second year of the loan. 
"(e) The Secretary or lender shall provide comprehensive 
prepurchase counseling to eligible veterans explaining the features 
of interest rate buy downs under subsection (a), including a hypo-
thetical payment schedule that displays the increases in monthly 
payments to the mortgagor over the first five years of the mortgage 
term. For the purposes of this subsection, the Secretary may assign 
personnel to military installations referred to in subsection (b)(2). 
"(f) There is authorized to be appropriated $3,000,000 annually 
to carry out this section. 
"(g) The Secretary may not guarantee a loan under this chapter 
after September 30, 1998, on which the Secretary is obligated 
to make payments under this section.". 
(2) The table of sections at the beginning of chapter 37 of 
title 38, United States Code, is amended by inserting after the 
item relating to section 3707 to following new item: 
"3708. Authority to buy down interest rates: pilot program.". 
(c) AUTHORITY OF SECRETARY OF DEFENSE.— 
38 use 3708 
(1) REIMBURSEMENT FOR BUY DOWN COSTS.—The Secretary note. 
of Defense shall reimburse the Secretary of Veterans Affairs 
for amounts paid by the Secretary of Veterans Afiairs to mort-
110 STAT. 558 
PUBLIC LAW 104-106—FEB. 10, 1996 
gagees under section 3708 of title 38, United States Code, 
as added by subsection (b). 
(2) DESIGNATION OF HOUSING SHORTAGE AREAS.—For pur-
poses of section 3708 of title 38, United States Code, the Sec-
retary of Defense may designate as a housing shortage area 
a military installation in the United States at which the Sec-
retary determines there is a shortage of suitable housing to 
meet the military family needs of members of the Armed Forces 
and the dependents of such members. 
(3) REPORT.—Not later than March 30, 1998, the Secretary 
shall submit to Congress a report regarding the effectiveness 
of the authority provided in section 3708 of title 38, United 
States Code, in ensuring that members of the Armed Forces 
and their dependents have access to suitable housing. The 
report shall include the recommendations of the Secretary 
regarding whether the authority provided in this subsection 
should be extended beyond the date specified in paragraph 
(5). 
(4) 
EARMARK.—Of 
the 
amount 
provided 
in 
section 
2405(a)(ll)(B), $10,000,000 for fiscal year 1996 shall be avail-
able to carry out this subsection. 
(5) SUNSET.—^This subsection shall not apply with respect 
to housing loans guaranteed after September 30, 1998, for 
which assistance payments are paid under section 3708 of 
title 38, United States Code. 
Subtitle C—Defense Base Closure and 
Realignment 
SEC. 2831. DEPOSIT OF PROCEEDS FROM LEASES OF PROPERTY 
LOCATED 
AT 
INSTALLATIONS 
BEING 
CLOSED 
OR 
REALIGNED. 
(a) EXCEPTION TO EXISTING REQUIREMENTS.—Section 2667(d) 
of title 10, United States Code, is amended— 
(1) in paragraph (l)(A)(ii), by inserting "or (5)" after "para-
graph (4)"; and 
(2) by adding at the end the following new paragraph: 
"(5) Money rentals received by the United States from a lease 
under subsection (f) shall be deposited into the account established 
under section 2906(a) of the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Pubhc Law 101-510; 10 
U.S.C. 2687 note).". 
(b) CORRESPONDING AMENDMENTS TO BASE CLOSURE LAWS.— 
(1) Section 207(a)(7) of the Defense Authorization Amendments 
and Base Closure and Realignment Act (Public Law 100-526; 10 
U.S.C. 2687 note) is amended by striking out "transfer or disposal" 
and inserting in lieu thereof "lease, transfer, or disposal". 
(2) Section 2906(a)(2) of the Defense Base Closure and Realign-
ment Act of 1990 (part A of title XXIX of Public Law 101-510; 
10 use 2687 
10 U.S.C. 2867 note) is amended— 
note- 
(A) in subparagraph (C), by striking out "transfer or dis-
posal" and inserting in lieu thereof "lease, transfer, or disposal"; 
and 
(B) in subparagraph (D), by striking out "transfer or dis-
posal" and inserting in lieu thereof "lease, transfer, or disposal". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 559 
SEC. 2832. IN-KIND CONSIDERATION FOR LEASES AT INSTALLATIONS 
TO BE CLOSED OR REALIGNED. 
Section 2667(f) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
"(4) The Secretary concerned may accept under subsection (b)(5) 
services of a lessee for an entire installation to be closed or realigned 
under a base closure law, or for any part of such installation, 
without regard to the requirement in subsection (b)(5) that a 
substantial part of the installation be leased.". 
SEC. 2833. INTERIM LEASES OF PROPERTY APPROVED FOR CLOSURE 
OR REALIGNMENT. 
Section 2667(f) of title 10, United States Code, is amended 
by adding after paragraph (4), as added by section 2832 of this 
Act, the following new paragraph: 
"(5)(A) Notwithstanding the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.), the scope of any environmental 
impact analysis necessary to support an interim lease of property 
under this subsection shall be limited to the environmental con-
sequences of activities authorized under the proposed lease and 
the cumulative impacts of other past, present, and reasonably 
foreseeable future actions during the period of the proposed lease. 
"(B) Interim leases entered into under this subsection shall 
be deemed not to prejudice the final disposal decision with respect 
to the property, even if final disposal of the property is delayed 
until completion of the term of the interim lease. An interim lease 
under this subsection shall not be entered into without prior con-
sultation with the redevelopment authority concerned. 
"(C) Subparagraphs (A) and (B) shall not apply to an interim 
lease under this subsection if authorized activities under the lease 
would— 
"(i) significantly affect the quality of the human environ-
ment; or 
"(ii) irreversibly alter the environment in a way that would 
preclude any reasonable disposal alternative of the property 
concerned.". 
SEC. 2834. AUTHORITY TO LEASE PROPERTY REQUIRING ENVIRON-
MENTAL REMEDIATION AT INSTALLATIONS APPROVED 
FOR CLOSURE OR REALIGNMENT. 
Section 
120(h)(3) 
of 
the 
Comprehensive 
Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
9620(h)(3)) is amended in the matter following subparagraph (C)— 
(1) by striking out the first sentence; and 
(2) by adding at the end, flush to the paragraph margin, 
the following: 
"The requirements of subparagraph (B) shall not apply in any 
case in which the person or entity to whom the real property 
is transferred is a potentially responsible party with respect 
, 
to such property. The requirements of subparagraph (B) shall 
, 
not apply in any case in which the transfer of the property 
occurs or has occurred by means of a lease, without regard 
to whether the lessee has agreed to purchase the property 
' 
or whether the duration of the lease is longer than 55 years. 
In the case of a lease entered into after September 30, 1995, 
with respect to real property located at an installation approved 
' 
for closure or realignment under a base closure law, the agency i 
110 STAT. 560 
PUBLIC LAW 104-106—FEB. 10, 1996 
leasing the property, in consultation with the Administrator, 
shall determine before leasing the property that the property 
is suitable for lease, that the uses contemplated for the lease 
are consistent with protection of human health and the environ-
ment, and that there are adequate assurances that the United 
States will take all remedial action referred to in subparagraph 
(B) that has not been taken on the date of the lease.". 
SEC. 2835. FINAL FUNDING 
FOR 
DEFENSE 
BASE 
CLOSURE 
AND 
REALIGNMENT COMMISSION. 
Section 2902(k) of the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note) is amended by adding at the end the following 
new paragraph: 
"(3)(A) The Secretary may transfer not more than $300,000 
from unobligated funds in the account referred to in subparagraph 
(B) for the purpose of assisting the Commission in carrying out 
its duties under this part during October, November, and December 
1995. Funds transferred under the preceding sentence shall remain 
available until December 31, 1995. 
"(B) The account referred to in subparagraph (A) is the Depart-
ment of Defense Base Closure Account established under section 
207(a) of the Defense Authorization Amendments and Base Closure 
and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note).". 
SEC. 2836. EXERCISE OF AUTHORITY DELEGATED BY THE ADMINIS-
TRATOR OF GENERAL SERVICES. 
Section 2905(b)(2) of the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note) is amended— 
(1) in subparagraph (A)— 
(A) by striking out "Subject to subparagraph (C)" in 
the matter preceding clause (i) and inserting in lieu thereof 
"Subject to subparagraph (B)"; and 
(B) by striking out "in effect on the date of the enact-
ment of this Act" each place it appears in clauses (i) and 
(ii); 
(2) by striking out subparagraphs (B) and (C) and inserting 
in lieu thereof the following new subparagraph (B): 
"(B) The Secretary may, with the concurrence of the Adminis-
trator of General Services— 
"(i) prescribe general policies and methods for utilizing 
excess property and disposing of surplus property pursuant 
to the authority delegated under paragraph (1); and 
"(ii) issue regulations relating to such policies and methods, 
which shall supersede the regulations referred to in subpara-
graph (A) with respect to that authority."; and 
(3) by redesignating subparagraphs (D) and (E) as subpara-
graphs (C) and (D), respectively. 
SEC. 2837. LEASE BACK OF PROPERTY DISPOSED FROM INSTALLA-
TIONS APPROVED FOR CLOSURE OR REALIGNMENT. 
(a) AUTHORITY.—Section 2905(b)(4) of the Defense Base Closure 
and Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note) is amended— 
(1) by redesignating subparagraphs (C), (D), and (E) as 
subparagraphs (D), (E), and (F), respectively; and 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 561 
(2) by inserting after subparagraph (B) the following new 
subparagraph (C): 
"(C)(i) The Secretary may transfer real property at an installa-
tion approved for closure or realignment under this part (including 
property at an installation approved for realignment which will 
be retained by the Department of Defense or another Federal agency 
after realignment) to the redevelopment authority for the installa-
tion if the redevelopment authority agrees to lease, directly upon 
transfer, one or more portions of the property transferred under 
this subparagraph to the Secretary or to the head of another depart-
ment or agency of the Federal Government. Subparagraph (B) shall 
apply to a transfer under this subparagraph. 
"(ii) A lease under clause (i) shall be for a term of not to 
exceed 50 years, but may provide for options for renewal or exten-
sion of the term by the department or agency concerned. 
"(iii) A lease under clause (i) may not require rental payments 
by the United States. 
"(iv) A lease under clause (i) shall include a provision specifying 
that if the department or agency concerned ceases requiring the 
use of the leased property before the expiration of the term of 
the lease, the remainder of the lease term may be satisfied by 
the same or another department or agency of the Federal Govern-
ment using the property for a use similar to the use under the 
lease. Exercise of the authority provided by this clause shall be 
made in consultation with the redevelopment authority concerned.". 
(b) U S E OF F U N D S T O IMPROVE LEASED PROPERTY.—Notwith- 
lo use 2687 
standing any other provision of law, a department or agency of note, 
the Federal Government that enters into a lease of property under 
section 2905(b)(4)(C) of the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note), as amended by subsection (a), may improve 
the leased property using funds appropriated or otherwise available 
to the department or agency for such purpose. 
SEC. 2838. IMPROVEMENT OF BASE CLOSURE AND REALIGNMENT 
PROCESS REGARDING DISPOSAL OF PROPERTY. 
(a) APPLICABILITY.—Subparagraph (A) of section 2905(b)(7) of 
the Defense Base Closure and Realignment Act of 1990 (part A 
of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) is 
amended to read as follows: 
"(A) The disposal of buildings and property located at installa-
tions approved for closure or realignment under this part after 
October 25, 1994, shall be carried out in accordance with this 
paragraph rather than paragraph (6).". 
(b) AGREEMENTS UNDER REDEVELOPMENT PLANS.—Subpara-
graph (F)(ii)(I) of such section is amended in the second sentence 
by striking out "the approval of the redevelopment plan by the 
Secretary of Housing and Urban Development under subparagraph 
(H) or (J)" and inserting in lieu thereof "the decision regarding 
the disposal of the buildings and property covered by the agree-
ments by the Secretary of Defense under subparagraph (K) or 
(L)". 
(c) REVISION OF REDEVELOPMENT PLANS.—Subparagraph (I) of 
such section is amended— 
(1) in clause (i)(II), by inserting "the Secretary of Defense 
and" before "the Secretary of Housing and Urban Development"; 
and 
110 STAT. 562 
PUBLIC LAW 104-106—FEB. 10, 1996 
Notification. 
(2) in clause (ii), by striking out "the Secretary of Housing 
and Urban Development" and inserting in lieu thereof "such 
Secretaries". 
(d) DISPOSAL OF BUILDINGS AND PROPERTY.—(1) Subparagraph 
(K) of such section is amended to read as follows: 
"(K)(i) Upon receipt of a notice under subparagraph (H)(iv) 
or (J)(ii) of the determination of the Secretary of Housing and 
Urban Development that a redevelopment plan for an installation 
meets the requirements set forth in subparagraph (H)(i), the Sec-
retary of Defense shall dispose of the buildings and property at 
the installation. 
"(ii) For purposes of carrying out an environmental assessment 
of the closure or realignment of an installation, the Secretary of 
Defense shall treat the redevelopment plan for the installation 
(including the aspects of the plan providing for disposal to State 
or local governments, representatives of the homeless, and other 
interested parties) as part of the proposed Federal action for the 
installation. 
"(iii) The Secretary of Defense shall dispose of buildings and 
property under clause (i) in accordance with the record of decision 
or other decision document prepared by the Secretary in accordance 
with the National Environmental Policy Act of 1969 (42 U.S.C. 
4331 et seq.). In preparing the record of decision or other decision 
document, the Secretary shall give substantial deference to the 
redevelopment plan concerned. 
"(iv) The disposal under clause (i) of buildings and property 
to assist the homeless shall be without consideration. 
"(v) In the case of a request for a conveyance under clause 
(i) of buildings and property for public benefit under section 203(k) 
of the Federal Property and Administrative Services Act of 1949 
(40 U.S.C. 484(k)) or sections 47151 through 47153 of title 49, 
United States Code, the sponsoring Federal agency shall use the 
eligibility criteria set forth in such section or such subchapter 
(as the case may be) to determine the eligibility of the applicant 
and use proposed in the request for the public benefit conveyance. 
The determination of such eligibility should be made before submis-
sion of the redevelopment plan concerned under subparagraph (G).". 
(2) Subparagraph (L) of such section is amended by striking 
out clauses (iii) and (iv) and inserting in lieu thereof the following 
new clauses (iii) and (iv): 
"(iii) Not later than 90 days after the date of the receipt 
of a revised plan for an installation under subparagraph (J), the 
Secretary of Housing and Urban Development shall— 
"(I) notify the Secretary of Defense and the redevelopment 
authority concerned of the buildings and property at an installa-
tion under clause (i)(IV) that the Secretary of Housing and 
Urban Development determines are suitable for use to assist 
the homeless; and 
"(II) notify the Secretary of Defense of the extent to which 
the revised plan meets the criteria set forth in subparagraph 
(H)(i). 
"(iv)(I) Upon notice from the Secretary of Housing and Urban 
Development with respect to an installation under clause (iii), the 
Secretary of Defense shall dispose of buildings and property at 
the installation in consultation with the Secretary of Housing and 
Urban Development and the redevelopment authority concerned. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 563 
"(11) For purposes of carrying out an environmental assessment 
of the closure or realignment of an installation, the Secretary of 
Defense shall treat the redevelopment plan submitted by the 
redevelopment authority for the installation (including the aspects 
of the plan providing for disposal to State or local governments, 
representatives of the homeless, and other interested parties) as 
part of the proposed Federal action for the installation. The Sec-
retary of Defense shall incorporate the notification of the Secretary 
of Housing and Urban Development under clause (iii)(I) as part 
of the proposed Federal action for the installation only to the 
extent, if any, that the Secretary of Defense considers such incorpo-
ration to be appropriate and consistent with the best and highest 
use of the installation as a whole, taking into consideration the 
redevelopment plan submitted by the redevelopment authority. 
"(Ill) The Secretary of Defense shall dispose of buildings and 
property under subclause (I) in accordance with the record of deci-
sion or other decision document prepared by the Secretary in accord-
ance with the National Environmental Policy Act of 1969 (42 U.S.C. 
4331 et seq.). In preparing the record of decision or other decision 
document, the Secretary shall give deference to the redevelopment 
plan submitted by the redevelopment authority for the installation. 
"(IV) The disposal under subclause (I) of buildings and property 
to assist the homeless shall be without consideration. 
"(V) In the case of a request for a conveyance under subclause 
(I) of buildings and property for public benefit under section 203(k) 
of the Federal Property and Administrative Services Act of 1949 
(40 U.S.C. 484(k)) or sections 47151 through 47153 of title 49, 
United States Code, the sponsoring Federal agency shall use the 
eligibility criteria set forth in such section or such subchapter 
(as the case may be) to determine the eligibility of the applicant 
and use proposed in the request for the public benefit conveyance. 
The determination of such eligibility should be made before submis-
sion of the redevelopment plan concerned under subparagraph (G).". 
(e) CONFORMING AMENDMENT.—Subparagraph (M)(i) of such 
section is amended by inserting "or (L)" after "subparagraph (K)". 
(f) CLARIFICATION OF PARTICIPANTS IN PROCESS.—Such section 
is further amended by adding at the end the following new subpara-
graph: 
"(P) For purposes of this paragraph, the term 'other interested 
parties', in the case of an installation, includes any parties eligible 
for the conveyance of property of the installation under section 
203(k) of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 484(k)) or sections 47151 through 47153 of 
title 49, United States Code, whether or not the parties assist 
the homeless.". 
SEC. 2839. AGREEMENTS FOR CERTAIN SERVICES AT INSTALLATIONS 
BEING CLOSED. 
(a) 1988 LAW.—Section 204(b)(8) of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 
100-526; 10 U.S.C. 2687 note) is amended by striking out subpara-
graph (A) and inserting in lieu thereof the following new 
subparagraph: 
"(A) Subject to subparagraph (C), the Secretary may enter 
into agreements (including contracts, cooperative agreements, or 
other arrangements for reimbursement) with local governments 
for the provision of police or security services, fire protection serv-
110 STAT. 564 
PUBLIC LAW 104-106—FEB. 10, 1996 
ices, airfield operation services, or other community services by 
such governments at mihtary installations to be closed under this 
title if the Secretary determines that the provision of such services 
under such agreements is in the best interests of the Department 
of Defense.". 
(b) 1990 LAW.—Section 2905(b)(8) of the Defense Base Closure 
and Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2867 note) is amended by striking out subpara-
graph (A) and inserting in lieu thereof the following new 
subparagraph: 
"(A) Subject to subparagraph (C), the Secretary may enter 
into agreements (including contracts, cooperative agreements, or 
other arrangements for reimbursement) with local governments 
for the provision of police or security services, fire protection serv-
ices, airfield operation services, or other community services by 
such governments at military installations to be closed under this 
part if the Secretary determines that the provision of such services 
under such agreements is in the best interests of the Department 
of Defense.". 
SEC. 2840. AUTHORITY 
TO TRANSFER 
PROPERTY 
AT 
MILITARY 
INSTALLATIONS TO BE CLOSED TO PERSONS WHO CON-
STRUCT OR PROVIDE MILITARY FAMILY HOUSING. 
(a) 1988 LAW.—Section 204 of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 
100-526; 10 U.S.C. 2687 note) is amended by adding at the end 
the following new subsection: 
"(e) TRANSFER AUTHORITY IN CONNECTION WITH CONSTRUCTION 
OR PROVISION OF MILITARY FAMILY HOUSING.—(1) Subject to para-
graph (2), the Secretary may enter into an agreement to transfer 
by deed real property or facilities located at or near an installation 
closed or to be closed under this title with any person who agrees, 
in exchange for the real property or facilities, to transfer to the 
Secretary housing units that are constructed or provided by the 
person and located at or near a military installation at which 
there is a shortage of suitable housing to meet the requirements 
of members of the Armed Forces and their dependents. The Sec-
retary may not select real property for transfer under this para-
graph if the property is identified in the redevelopment plan for 
the installation as items essential to the reuse or redevelopment 
of the installation. 
"(2) A transfer of real property or facilities may be made under 
paragraph (1) only if— 
"(A) the fair market value of the housing units to be 
received by the Secretary in exchange for the property or facili-
ties to be transferred is equal to or greater than the fair 
market value of such property or facilities, as determined by 
the Secretary; or 
"(B) in the event the fair market value of the housing 
units is less than the fair market value of property or facilities 
to be transferred, the recipient of the property or facilities 
agrees to pay to the Secretary the amount equal to the excess 
of the fair market value of the property or facilities over the 
fair market value of the housing units. 
"(3) Notwithstanding section 207(a)(7), the Secretary may 
deposit funds received under paragraph (2)(B) in the Department 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 565 
of Defense Family Housing Improvement Fund established under 
section 2873(a) of title 10, United States Code. 
"(4) The Secretary shall submit to the appropriate committees Reports. 
of Congress a report describing each agreement proposed to be 
entered into under paragraph (1), including the consideration to 
be received by the United States under the agreement. The Sec-
retary may not enter into the agreement until the end of the 
21-day period beginning on the date the appropriate committees 
of Congress receive the report regarding the agreement. 
"(5) The Secretary may require any additional terms and condi-
tions in connection with an agreement authorized by this subsection 
as the Secretary considers appropriate to protect the interests of,, 
the United States.". 
(b) 1990 LAW.—Section 2905 of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note) is amended by adding at the end 
the following new subsection: 
"(f) TRANSFER AUTHORITY IN CONNECTION WITH CONSTRUCTION 
OR PROVISION OF MILIT.\RY FAMILY HOUSING.—(1) Subject to para-
graph (2), the Secretary may enter into an agreement to transfer 
by deed real property or facilities located at or near an installation 
closed or to be closed under this part with any person who agrees, 
in exchange for the real property or facilities, to transfer to the 
Secretary housing units that are constructed or provided by the 
person and located at or near a military installation at which 
there is a shortage of suitable housing to meet the requirements 
of members of the Armed Forces and their dependents. The Sec-
retary may not select real property for transfer under this para-
graph if the property is identified in the redevelopment plan for 
the installation as property essential to the reuse or redevelopment 
of the installation. 
"(2) A transfer of real property or facilities may be made under 
paragraph (1) only if— 
"(A) the fair market value of the housing units to be 
received by the Secretary in exchange for the property or facili-
ties to be transferred is equal to or greater than the fair 
market value of such property or facilities, as determined by 
the Secretary; or 
"(B) in the event the fair market value of the housing 
units is less than the fair market value of property or facilities 
to be transferred, the recipient of the property or facilities 
agrees to pay to the Secretary the amount equal to the excess 
of the fair market value of the property or facilities over the 
fair market value of the housing units. 
"(3) Notwithstanding paragraph (2) of section 2906(a), the Sec-
retary may deposit funds received under paragraph (2)(B) in the 
Department of Defense Family Housing Improvement Fund estab-
lished under section 2873(a) of title 10, United States Code. 
"(4) The Secretary shall submit to the congressional defense Reports. 
committees a report describing each agreement proposed to be 
entered into under paragraph (1), including the consideration to 
be received by the United States under the agreement. The Sec-
retary may not enter into the agreement until the end of the 
30-day period beginning on the date the congressional defense 
committees receive the report regarding the agreement. 
"(5) The Secretary may require any additional terms and condi-
tions in connection with an agreement authorized by this subsection 
110 STAT. 566 
PUBLIC LAW 104-10&-FEB. 10, 1996 
as the Secretary considers appropriate to protect the interests of 
the United States.". 
10 use 2687 
(c) REGULATIONS.—^Not later than nine months after the date 
»iote. 
of the enactment of this Act, the Secretary of Defense shall prescribe 
any regulations necessary to carry out subsection (e) of section 
204 of the Defense Authorization Amendments and Base Closure 
and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note), 
as added by subsection (a), and subsection (f) of section 2905 of 
the Defense Base Closure and Realignment Act of 1990 (part A 
of title XXIX of PubHc Law 101-510; 10 U.S.C. 2687 note), as 
added by subsection (b). 
SEC. 2841. USE OF SINGLE BASE CLOSURE AUTHORITIES FOR DIS-
POSAL 
OF 
PROPERTY 
AND 
FACILITIES 
AT 
FORT 
HOLABIRD, MARYLAND. 
(a) CONSOLIDATION OF BASE CLOSURE AUTHORITIES.—In 
the 
case of the property and facilities at Fort Holabird, Maryland, 
described in subsection (b), the Secretary of Defense shall dispose 
of such property and facilities in accordance with section 2905(b)(7) 
of the Defense Base Closure and Realignment Act of 1990 (part 
A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), 
as amended by section 2838 of this Act. 
(b) COVERED PROPERTY AND FACILITIES.—Subsection (a) applies 
to the following property and facilities at Fort Holabird, Maryland: 
(1) Property and facilities that were approved for closure 
or realignment under title II of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public 
Law 100-526; 10 U.S.C. 2687 note), but have not been disposed 
of as of the date of the enactment of this Act, including buildings 
305 and 306 and the parking lots and other property associated 
with such buildings. 
(2) Property and facilities that were approved in 1995 
for closure or realignment under the Defense Base Closure 
and Realignment Act of 1990 (part A of title XXIX of Public 
Law 101-510; 10 U.S.C. 2687 note). 
(c) USE OF SURVEYS AND OTHER EVALUATIONS OF PROPERTY.— 
In carrying out the disposal of the property and facilities referred 
to in subsection (b)(1), the Secretary shall utilize any surveys and 
other evaluations of such property and facilities that were prepared 
by the Corps of Engineers before the date of the enactment of 
this Act as part of the process for the disposal of such property 
and facilities. 
Subtitle D—Land Conveyances Generally 
PART I—ARMY CONVEYANCES 
SEC. 2851. TRANSFER OF JURISDICTION, FORT SAM HOUSTON, TEXAS. 
(a) TRANSFER OF LAND FOR NATIONAL CEMETERY.—The Sec-
retary of the Army may transfer, without reimbursement, to the 
administrative jurisdiction of the Secretary of Veterans Affairs a 
parcel of real property (including any improvements thereon) 
consisting of approximately 53 acres and comprising a portion of 
Fort Sam Houston, Texas. 
(b) USE OF LAND.—^The Secretary of Veterans Affairs shall 
use the real property transferred under subsection (a) as a national 
cemetery under chapter 24 of title 38, United States Code. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 567 
(c) LEGAL DESCRiFnON.—The exact acreage and legal descrip-
tion of the real property to be transferred under this section shall 
be determined by a survey satisfactory to the Secretary of the 
Army. The cost of the survey shall be borne by the Secretary 
of Veterans Affairs. 
(d) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary of the 
Army may require such additional terms and conditions in connec-
tion with the transfer under this section as the Secretary of the 
Army considers appropriate to protect the interests of the United 
States. 
SEC. 2852. TRANSFER OF JURISDICTION, FORT BLISS, TEXAS. 
(a) TRANSFER OF LAND FOR NATIONAL CEMETERY.—The Sec-
retary of the Army may transfer, without reimbursement, to the 
administrative jurisdiction of the Secretary of Veterans Affairs a 
parcel of real property (including any improvements thereon) 
consisting of approximately 22 acres and comprising a portion of 
Fort Bliss, Texas. 
(b) USE OF LAND.—The Secretary of Veterans Affairs shall 
use the real property transferred under subsection (a) as an addition 
to the Fort Bliss National Cemetery and administer such real 
property pursuant to chapter 24 of title 38, United States Code. 
(c) LEGAL DESCRiF:riON.—The exact acreage and legal descrip-
tion of the real property to be transferred under this section shall 
be determined by a survey satisfactory to the Secretary of the 
Army. The cost of the survey shall be borne by the Secretary 
of Veterans Affairs. 
(d) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary of the 
Army may require such additional terms and conditions in connec-
tion with the transfer under this section as the Secretary of the 
Army considers appropriate to protect the interests of the United 
States. 
SEC. 2853. TRANSFER OF JURISDICTION AND LAND CONVEYANCE, 
16 USC 668dd 
FORT DEVENS MILITARY RESERVATION, MASSACHU- 
note. 
SETTS. 
(a) TRANSFER OF LAND FOR WILDLIFE REFUGE.—Subject to sub-
sections (b) and (c), the Secretary of the Army shall transfer, without 
reimbursement, to the administrative jurisdiction of the Secretary 
of the Interior that portion of Fort Devens Military Reservation, 
Massachusetts, that is situated south of Massachusetts State Route 
2, for inclusion in the Oxbow National Wildlife Refuge. 
(b) LAND CONVEYANCE.—Subject to subsection (c), the Secretary 
of the Army shall convey to the Town of Lancaster, Massachusetts 
(in this section referred to as the "Town"), all right, title, and 
interest of the United States in and to a parcel of real property 
consisting of approximately 100 acres of the parcel available for 
transfer under subsection (a) and located adjacent to Massachusetts 
State Highway 70. 
(c) REQUIREMENTS RELATING TO TRANSFER AND CONVEYANCE.— 
(1) The transfer under subsection (a) and the conveyance under . 
subsection (b) may not be made unless the property to be transferred 
and conveyed is determined to be excess to the needs of the Depart-
ment of Defense. 
(2) The transfer and conveyance shall be made as soon as 
practicable after the date on which the property is determined -
to be excess to the needs of the Department of Defense. 
110 STAT. 568 
PUBLIC LAW 104-106—FEB. 10, 1996 
(d) LEGAL DESCRIPTION.—(1) The exact acreage and legal 
description of the real property to be transferred under subsection 
(a) shall be determined by a survey mutually satisfactory to the 
Secretary of the Army and the Secretary of the Interior. The cost 
of the survey shall be borne by the Secretary of the Interior. 
(2) The exact acreage and legal description of the real property 
to be conveyed under subsection (b) shall be determined by a 
survey mutually satisfactory to the Secretary of the Army, the 
Secretary of the Interior, and the Board of Selectmen of the Town. 
The cost of the survey shall be borne by the Town. 
(e) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary of the 
Army may require such additional terms and conditions in connec-
tion with the transfer under subsection (a) and the conveyance 
under subsection (b) as the Secretary of the Army considers appro-
priate to protect the interests of the United States. 
SEC. 2854. MODIFICATION OF LAND CONVEYANCE, FORT BELVOIR, 
VIRGINIA. 
(a) DESIGNATION OF RECIPIENT.—Subsection (a) of section 2821 
of the Military Construction Authorization Act for Fiscal Years 
1990 and 1991 (division B of Public Law 101-189; 103 Stat. 1658) 
is amended by striking out "any grantee selected in accordance 
with subsection (e)" and inserting in lieu thereof "the County of 
Fairfax, Virginia (in this section referred to as the 'grantee'),". 
(b) CONSIDERATION.—Subsection (b)(1) of such section is 
amended by striking out subparagraph (B) and inserting in lieu 
thereof the following new subparagraph: 
"(B) grant title, free of liens and other encumbrances, 
to the Department to such facilities and, if not already 
owned by the Department, to the underlying land; and". 
(c) CONTENT OF AGREEMENT.—Subsection (c) of such section 
is amended to read as follows: 
"(c) CONTENT OF AGREEMENT.—^An agreement entered into 
under this section shall include the following: 
"(1) A requirement that the grantee construct facilities 
and make infrastructure improvements for the Department 
of the Army that the Secretary determines are necessary for 
the Department at Fort Belvoir and at other sites at which 
activities will be relocated as a result of the conveyance made 
under this section. 
"(2) A requirement that the construction of facilities and 
infrastructure improvements referred to in paragraph (1) be 
carried out in accordance with plans and specifications approved 
by the Secretary. 
"(3) A requirement that the Secretary retain a lien or 
other security interest against the property conveyed to the 
grantee in the amount of the fair market value of the property, 
as determined under subsection (b)(2). The agreement will 
specify the terms for releasing the lien or other security 
interest, in whole or in part. In the event of default by the 
County on its obligations under the terms of the agreement, 
the Secretary shall enforce the lien or security interest. The 
proceeds obtained through enforcing the lien or security interest 
may be used by the Secretary to construct facilities and make 
infrastructure improvements in lieu of those provided for in 
the agreement.". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 569 
(d) SURVEYS.—Subsection (g) of such section is amended by 
striking out the last sentence and inserting in Heu thereof the 
following: "The grantee shall be responsible for completing any 
such survey without cost to the United States.". 
(e) 
CONFORMING 
AMENDMENTS.—Such 
section 
is 
further 
amended— 
(1) in subsection (a), by striking out "Subject to subsections 
(b) through (h), the" and inserting in lieu thereof "The"; 
(2) in subsection (b)(1), by striking out "subsection (c)(1)(D)" 
both places it appears and inserting in lieu thereof "subsection 
(c)(1)(A)"; 
(3) by striking out subsections (e) and (f); and 
(4) by redesignating subsections (g) and (h) as subsections 
(e) and (f), respectively. 
SEC. 2855. LAND EXCHANGE, FORT LEWIS, WASfflNGTON. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 
convey to Weyerhaeuser Real Estate Company, Tacoma, Washing-
ton (in this section referred to as "WRECO"), all right, title, and 
interest of the United States in and to a parcel of real property 
at Fort Lewis, Washington, known as an unimproved portion of 
Tract 1000 (formerly being in the DuPont Steilacoom Road, consist-
ing of approximately 1.23 acres), and Tract 26E (consisting of 0.03 
acre). 
(b) CONSIDERATION.—^As consideration for the 
conveyance 
authorized by subsection (a), WRECO shall convey or cause to 
be conveyed to the United States, by warranty deed acceptable 
to the Secretary, a 0.39 acre parcel of real property located adjacent 
to Fort Lewis, Washington, together with other consideration accept-
able to the Secretary. The total consideration conveyed to the United 
States shall not be less than the fair market value of the land 
conveyed under subsection (a). 
(c) DETERMINATION OF FAIR MARKET VALUE.—The determina-
tions of the Secretary regarding the fair market values of the 
parcels of real property and improvements to be conveyed pursuant 
to subsections (a) and (b) shall be final. 
(d) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the parcels of real property to be conveyed pursuant 
to subsections (a) and (b) shall be determined by a survey satisfac-
tory to the Secretary. The cost of the survey shall be borne by 
WRECO. 
(e) EFFECT ON EXISTING REVERSIONARY INTEREST.—The Sec-
retary may enter into an agreement with the appropriate officials 
of Pierce County, Washington, under which— 
(1) the existing reversionary interest of Pierce County in 
the lands to be conveyed by the United States under subsection 
(a) is extinguished; and 
(2) the conveyance to the United States under subsection 
(b) is made subject to a similar reversionary interest in favor 
of Pierce County in the lands conveyed under such subsection. 
(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under this section as the Secretary considers appro-
priate to protect the interests of the United States. 
Weyerhauser 
Real Estate 
Company. 
110 STAT. 570 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 2856. LAND EXCHANGE, ARMY RESERVE CENTER, GAINESVILLE, 
GEORGIA. 
(a) LAND EXCHANGE AUTHORIZED.—^The Secretary of the Army 
may convey to the City of Gainesville, Georgia (in this section 
referred to as the "City"), all right, title, and interest of the United 
States in and to a parcel of real property, together with any improve-
ments thereon, consisting of approximately 4.2 acres and located 
on Shallowford Road in Gainesville, Georgia, the site of the Army 
Reserve Center, Gainesville, Georgia. 
(b) CONSIDERATION.—^As consideration for the conveyance 
authorized by subsection (a), the City shall— 
(1) convey to the United States all right, title, and interest 
in and to a parcel of real property consisting of approximately 
8 acres located in the Atlas Industrial Park, Gainesville, Geor-
gia, that is acceptable to the Secretary; 
(2) design and construct on such real property suitable 
facilities (as determined by the Secretary) for training activities 
of the Army Reserve to replace facilities conveyed under sub-
section (a); 
(3) carry out, at cost to the City, any environmental assess-
ments and any other studies, analyses, and assessments that 
may be required under Federal law in connection with the 
land conveyances under subsection (a) and paragraph (1) and 
the construction under paragraph (2); 
(4) pay the Secretary the amount (as determined by the 
Secretary) equal to the cost of relocating Army Reserve units 
from the real property to be conveyed under subsection (a) 
to the replacement facilities to be constructed under paragraph 
(2); and 
(5) if the fair market value of the real property conveyed 
by the Secretary under subsection (a) exceeds the fair market 
value of the consideration provided by the City under para-
graphs (1) through (4), pay the United States the amount 
equal to the amount of such excess. 
(c) DETERMINATION OF FAIR MARKET VALUE.—The Secretary 
shall determine the fair market value of the real property to be 
conveyed under subsection (a) and of the consideration to be fur-
nished by the City under subsection (b). Such determination shall 
be final. 
(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of the parcels of real property to be conveyed under 
subsections (a) and (b) shall be determined by a survey satisfactory 
to the Secretary. The cost of the survey shall be borne by the 
City. 
(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyances authorized by this section as the Secretary consid-
ers appropriate to protect the interests of the United States. 
SEC. 2857. L A N D CONVEYANCE, HOLSTON ARMY AMMUNITION PLANT, 
MOUNT CARMEL, TENNESSEE. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 
convey, without reimbursement, to the City of Mount Carmel, Ten-
nessee (in this section referred to as the "City"), all right, title, 
and interest of the United States in and to a parcel of real property, 
including improvements thereon, consisting of approximately 6.5 
acres located at Holston Army Ammunition Plant, Tennessee. The 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 571 
property is located adjacent to the Mount Carmel Cemetery and 
is intended for expansion of the cemetery. 
(b) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the City. 
(c) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States. 
SEC. 2858. LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT, 
CHARLESTOWN, INDIANA. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 
convey, without consideration, to the State of Indiana (in this sec-
tion referred to as the "State"), all right, title, and interest of 
the United States in and to a parcel of real property, including 
any improvements thereon, that consists of approximately 1125 
acres at the inactivated Indiana Army Ammunition Plant in 
Charlestown, Indiana, and is the subject of a 25-year lease between 
the Secretary and the State. 
(b) CONDITION OF CONVEYANCE.—^The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
State use the conveyed property for recreational purposes. 
(c) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the State. 
(d) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States. 
SEC. 2859. LAND CONVEYANCE, FORT CRD, CALIFORNIA. 
(a) CONVEYANCE AUTHORIZED.—^The Secretary of the Army may 
convey to the City of Seaside, California (in this section referred 
to as the "City"), all right, title, and interest of the United States 
in and to a parcel of real property (including improvements thereon) 
consisting of approximately 477 acres located in Monterey County, 
California, and comprising a portion of the former Fort Ord Military 
Complex. The real property to be conveyed to the City includes 
the two Fort Ord Golf Courses, Black Horse and Bayonet, and 
a portion of the Hayes Housing Facilities. 
(b) CONSIDERATION.—^As consideration for the conveyance of 
the real property and improvements under subsection (a), the City 
shall pay to the United States an amount equal to the fair market 
value of the property to be conveyed, as determined by the 
Secretary. 
(c) USE AND DEPOSIT OF PROCEEDS.—(1) From the funds paid 
by the City under subsection (b), the Secretary shall deposit in 
the Morale, Welfare, and Recreation Fund Account of the Depart-
ment of the Army such amounts as may be necessary to cover 
morale, welfare, and recreation activities at Army installations 
in the general vicinity of Fort Ord during fiscal years 1996 through 
2000. The amount deposited by the Secretary into the Account 
shall not exceed the fair market value, as established under sub-
section (b), of the two Fort Ord Golf Courses conveyed under sub-
section (a). The Secretary shall notify Congress of the amount 
Notification. 
110 STAT. 572 
PUBLIC LAW 104-106—FEB. 10, 1996 
to be deposited not later than 90 days after the date of the 
conveyance. 
(2) The Secretary shall deposit the balance of any funds paid 
by the City under subsection (b), after deducting the amount depos-
ited under paragraph (1), in the Department of Defense Base Clo-
sure Account 1990. 
(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey mutually satisfactory to the 
Secretary and the City. The cost of the survey shall be borne 
by the City. 
(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary 
may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers appro-
priate to protect the interests of the United States. 
SEC. 2860. LAND CONVEYANCE, PARKS RESERVE FORCES TRAINING 
AREA, DUBLIN, CALIFORNIA. 
(a) CONVEYANCE AUTHORIZED.—(1) Except as provided in para-
graph (2), the Secretary of the Army may convey to the County 
of Alameda, California (in this section referred to as the "County"), 
all right, title, and interest of the United States in and to a parcel 
of real property, including improvements thereon, consisting of 
approximately 42 acres located at Parks Reserve Forces Training 
Area, Dublin, California. 
(2) The conveyance authorized by this section shall not include 
any oil, gas, or mineral interest of the United States in the real 
property to be conveyed. 
(b) CONSIDERATION.—(1) As consideration for the conveyance 
under subsection (a)(1), the County shall provide the Army with 
the following services at the portion of Parks Reserve Forces Train-
ing Area retained by the Army: 
(A) Relocation of the main gate of the retained Training 
Area from Dougherty Road to Dublin Boulevard across from 
the Bay Area Rapid Transit District East Dublin station, includ-
ing the closure of the existing main gate on Dougherty Road, 
construction of a security facility, and construction of a roadway 
from the new entrance to Fifth Street. 
(B) Enclosing and landscaping of the southern boundary 
of the retained Training Area installation located northerly 
of Dublin Boulevard. 
(C) Enclosing and landscaping of the eastern boundary 
of the retained Training Area from Dublin Boulevard to Gleason 
Drive. 
(D) Resurfacing of roadways within the retained Training 
Area. 
(E) Provision of such other services in connection with 
the retained Training Area, including relocation or reconstruc-
tion of water lines, relocation or reconstruction of sewer lines, 
construction of drainage improvements, and construction of 
buildings, as the Secretary and the County may determine 
to be appropriate. 
(F) Provision for and funding of any environmental mitiga-
tion that is necessary as a result of a change in use of the 
conveyed property by the County. 
(2) The detailed specifications for the services to be provided 
under paragraph (1) may be determined and approved on behalf 
PUBLIC LAW 104-10&—FEB. 10, 1996 
110 STAT. 573 
of the Secretary by the Commander of Parks Reserve Forces Train-
ing Area. The preparation costs of such specifications shall be 
borne by the County. 
(3) The fair market value of improvements and services received 
by the United States from the County under paragraph (1) must 
be equal to or exceed the appraised fair market value of the real 
property to be conveyed under subsection (a)(1). The appraisal 
of the fair market value of the property shall be subject to the 
Secretary's review and approval. 
(c) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a)(1) shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the County. 
(d) TIME FOR TRANSFER OF TITLE.—The transfer of title to 
the County under subsection (a)(1) may be executed by the Secretary 
only upon the satisfactory guarantee by the County of completion 
of the services to be provided under subsection (b). 
(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a)(1) as the Secretary considers 
appropriate to protect the interests of the United States. 
SEC. 2861. LAND CONVEYANCE, ARMY RESERVE CENTER, YOUNGS-
TOWN, OHIO. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 
convey, without consideration, to the City of Youngstown, Ohio 
(in this section referred to as the "City"), all right, title, and interest 
of the United States in and to a parcel of excess real property, 
including improvements thereon, that is located at 399 Miller Street 
in Youngstown, Ohio, and contains the Kefurt Army Reserve Center. 
(b) CONDITION OF CONVEYANCE.—The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
City retain the conveyed property for the use and benefit of the 
Youngstown Fire Department. 
(c) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the City. 
(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States. 
SEC. 2862. LAND CONVEYANCE, ARMY RESERVE PROPERTY, FORT 
SHERIDAN, ILLINOIS. 
(a) CONVEYANCE AUTHORIZED.—Subject to subsection (b), the 
Secretary of the Army may convey to any transferee selected under 
subsection (g) all right, title, and interest of the United States 
in and to a parcel of real property (including improvements thereon) 
at Fort Sheridan, Illinois, consisting of approximately 114 acres 
and comprising an Army Reserve area. 
(b) REQUIREMENT FOR FEDERAL SCREENING OF PROPERTY.— 
The Secretary may not carry out the conveyance of property author-
ized by subsection (a) unless the Secretary determines that no 
department or agency of the Federal Government will accept the 
transfer of the property. 
110 STAT. 574 
PUBLIC LAW 104-106—FEB. 10, 1996 
(c) CONSIDERATION.—(1) As consideration for the conveyance 
under subsection (a), the transferee selected under subsection (g) 
shall— 
(A) convey to the United States a parcel of real property 
that meets the requirements of subsection (d); 
(B) design for and construct on the property conveyed under 
subparagraph (A) such facilities (including support facilities 
and infrastructure) to replace the facilities conveyed pursuant 
to the authority in subsection (a) as the Secretary considers 
appropriate; and 
(C) pay the cost of relocating Army personnel in the facili-
ties located on the real property conveyed pursuant to the 
authority in subsection (a) to the facilities constructed under 
subparagraph (B). 
(2) The Secretary shall ensure that the fair market value of 
the consideration provided by the transferee under paragraph (1) 
is not less than the fair market value of the real property conveyed 
by the Secretary under subsection (a). 
(d) REQUIREMENTS RELATING TO PROPERTY TO BE CONVEYED 
TO UNITED STATES.—The real property conveyed to the United 
States under subsection (c)(1)(A) by the transferee selected under 
subsection (g) shall— 
(1) be located not more than 25 miles from Fort Sheridan; 
(2) be located in a neighborhood or area having social 
and economic conditions similar to the social and economic 
conditions of the area in which Fort Sheridan is located; and 
(3) be acceptable to the Secretary. 
(e) 
INTERIM 
RELOCATION 
OF 
ARMY 
PERSONNEL.—Pending 
completion of the construction of all the facilities proposed to be 
constructed under subsection (c)(1)(B) by the transferee selected 
under subsection (g), the Secretary may relocate Army personnel 
in the facilities located on the property to be conveyed pursuant 
to the authority in subsection (a) to the facilities that have been 
constructed by the transferee under such subsection (c)( 1)(B). 
(f) DETERMINATION OF FAIR MARKET VALUE.—The Secretary 
shall determine the fair market value of the real property to be 
conveyed under subsection (a) and of the consideration to be pro-
vided under subsection (c)(1). Such determination shall be final. 
(g) SELECTION OF TRANSFEREE.—(1) The Secretary shall use 
competitive procedures for the selection of a transferee under sub-
section (a). 
(2) In evaluating the offers of prospective transferees, the Sec-
retary shall— 
(A) consider such criteria as the Secretary considers to 
be appropriate to determine whether prospective transferees 
will be able to satisfy the consideration requirements specified 
in subsection (c)(1); and 
(B) consult with the communities and jurisdictions in the 
vicinity of Fort Sheridan (including the City of Lake Forest, 
the City of Highwood, and the City of Highland Park and 
the County of Lake, Illinois) in order to determine the most 
appropriate use of the property to be conveyed. 
(h) DESCRIPTIONS OF PROPERTY.—The exact acreage and legal 
descriptions of the real property to be conveyed by the Secretary 
under subsection (a) and the real property to be conveyed under 
subsection (c)(1)(A) shall be determined by a survey satisfactory 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 575 
to the Secretary. The cost of the survey shall be borne by the 
transferee selected under subsection (g). 
(i) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under this section as the Secretary considers appro-
priate to protect the interests of the United States. 
SEC. 2863. LAND CONVEYANCE, PROPERTY UNDERLYING CUMMINS 
APARTMENT COMPLEX, FORT HOLABIRD, MARYLAND. 
(a) CONVEYANCE AUTHORIZED.—^Notwithstanding any other 
provision of law, the Secretary of the Army may convey to the 
existing owner of the improvements thereon all right, title, and 
interest of the United States in and to a parcel of real property 
underlying the Cummins Apartment Complex at Fort Holabird, 
Maryland, that consists of approximately 6 acres, and any interest 
the United States may have in the improvements thereon. 
(b) CONSIDERATION.—As consideration for the conveyance under 
subsection (a), the owner of the improvements referred to in that 
subsection shall provide compensation to the United States in an 
amount equal to the fair market value (as determined by the 
Secretary) of the property interest to be conveyed. 
(c) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey that is satisfactory to the 
Secretary. 
(d) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States. 
SEC. 2864. MODIFICATION OF EXISTING LAND CONVEYANCE, ARMY 
PROPERTY, HAMILTON AIR FORCE BASE, CALIFORNIA. 
(a) APPLICATION OF SECTION.—^The authority provided in sub-
section (b) shall apply only in the event that the purchaser pur-
chases only a portion of the Sale Parcel referred to in section 
9099 of the Department of Defense Appropriations Act, 1993 (Public 
Law 102-396; 106 Stat. 1924) and exercises the purchaser's option 
to withdraw from the sale as to the rest of the Sale Parcel. 
(b) CONVEYANCE AUTHORITY IN EVENT OF PARTIAL SALE.—The 
Secretary of the Army may convey to the City of Novato, California 
(in this section referred to as the "City")— 
(1) that portion of the Sale Parcel (other than Landfill 
26 and an appropriate buffer area around it and the ground-
water treatment facility site) that is not purchased as provided 
in subsection (a); and 
(2) any of the land referred to in subsection (e) of such 
section 9099 that is not purchased by the purchaser. 
(c) CONSIDERATION AND CONDITIONS ON CONVEYANCE.—^The 
conveyance under subsection (b) shall be made as a public benefit 
transfer to the City for the sum of One Dollar, subject to the 
condition that the conveyed property be used for school, classroom, 
or other educational purposes or as a public park or recreation 
area. 
(d) SUBSEQUENT COIWEYANCE BY THE CITY.—(1) If, within 10 
years after the conveyance under subsection (b), the City conveys 
all or any part of the conveyed property to a third party without 
the use restrictions specified in subsection (c), the City shall pay 
to the Secretary of the Army an amount equal to the proceeds 
110 STAT. 576 
PUBLIC LAW 104-106—FEB. 10, 1996 
received by the City from the conveyance, minus the demonstrated 
reasonable costs of making the conveyance and of any improvements 
made by the City to the property following its acquisition of the 
land (but only to the extent such improvements increase the value 
of the property conveyed). The Secretary of the Army shall deliver 
into the applicable closing escrow an acknowledgement of receipt 
of the proceeds and a release of the reverter right under subsection 
(e) as to the affected land, effective upon such receipt. 
(2) Until one year after the completion of the cleanup of 
contaminated soil in the Landfill located on the Sale Parcel and 
completion of the groundwater treatment facilities, any conveyance 
by the City must be at a per-acre price for the portion sold that 
is at least equal to the per-acre contract price paid by the purchaser 
for the portion of the Sale Parcel purchased under the Agreement 
and Modification for the purchase of the Sale Parcel by the pur-
chaser. Thereafter, any conveyance by the City must be at a price 
at least equal to the fair market value of the portion sold. 
(3) This subsection shall not apply to a conveyance by the 
City to another public or quasi-public agency for public uses of 
the kind described in subsection (c). 
(e) REVERSION.—If the Secretary of the Army determines that 
the City has failed to make a payment as required by subsection 
(d)(1) or that any portion of the conveyed property retained by 
the City or conveyed under subsection (d)(3) is not being utilized 
in accordance with subsection (c), title to the applicable portion 
of such property shall revert to the United States at the election 
of the Administrator of the General Services Administration. 
(f) SPECIAL CON\'EYANCE REGARDING BUILDING 138 PARCEL.— 
The Secretary of the Army may convey to the purchaser of the 
Sale Parcel the Building 138 parcel, which has been designated 
by the parties as Parcel A4. The per-acre price for the portion 
conveyed under this subsection shall be at least equal to the per-
acre contract price paid by the purchaser for the portion of the 
Sale Parcel purchased under the Agreement and Modification, dated 
September 25, 1990, as amended. 
PART II—NAVY CONVEYANCES 
SEC. 2865. TRANSFER OF JURISDICTION, NAVAL WEAPONS INDUS-
TRIAL RESERVE PLANT, CALVERTON, NEW YORK. 
(a) TRANSFER AUTHORIZED.—Notwithstanding section 2854 of 
the Military Construction Authorization Act for Fiscal Year 1993 
(division B of Public Law 102-484; 106 Stat. 2626), as amended 
by section 2823 of the Military Construction Authorization Act 
for Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 
3058), the Secretary of the Navy may transfer, without reimburse-
ment, to the administrative jurisdiction of the Secretary of Veterans 
Affairs a parcel of real property consisting of approximately 150 
acres located adjacent 
to the Calverton National 
Cemetery, 
Calverton, New York, and comprising a portion of the buffer zone 
of the Naval Weapons Industrial Reserve Plant, Calverton, New 
York. 
(b) USE OF PROPERTY.—^The Secretary of Veterans Affairs shall 
u 
use the real property transferred under subsection (a) as an addition 
to the Calverton National Cemetery and administer such real prop-
erty pursuant to chapter 24 of title 38, United States Code. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 577 
(c) SURVEY.—The cost of any survey necessary for the transfer 
of jurisdiction of the real property described in subsection (a) from 
the Secretary of the Navy to the Secretary of Veterans Affairs 
shall be borne by the Secretary of Veterans Affairs. 
(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary of the 
Navy may require such additional terms and conditions in connec-
tion with the transfer under this section as the Secretary of the 
Navy considers appropriate to protect the interests of the United 
States. 
SEC. 2866. MODIFICATION OF LAND CONVEYANCE, NAVAL WEAPONS 
INDUSTRIAL RESERVE PLANT, CALVERTON, NEW YORK. 
(a) REMOVAL OF REVERSIONARY INTEREST; ADDITION OF LEASE 
AUTHORITY.—Subsection (c) of section 2833 of the Military Construc-
tion Authorization Act for Fiscal Year 1995 (division B of Public 
Law 103-337; 108 Stat. 3061) is amended to read as follows: 
"(c) LEASE AUTHORITY.—^Until such time as the real property 
described in subsection (a) is conveyed by deed, the Secretary may 
lease the property, along with improvements thereon, to the 
Community Development Agency in exchange for security services, 
fire protection services, and maintenance services provided by the 
Community Development Agency for the property.". 
(b) CONFORMING AJVIENDMENT.—Subsection (e) of such section 
is amended by striking out "subsection (a)" and inserting in lieu 
thereof "subsection (a) or a lease under subsection (c)". 
SEC. 2867. LAND CONVEYANCE ALTERNATIVE TO EXISTING LEASE 
AUTHORITY, 
NAVAL 
SUPPLY 
CENTER, 
OAKLAND, 
CALIFORNIA. 
Section 2834(b) of the Military Construction Authorization Act 
for Fiscal Year 1993 (division B of Public Law 102-484; 106 Stat. 
2614), as amended by section 2833 of the Military Construction 
Authorization Act for Fiscal Year 1994 (division B of Public Law 
103-160; 107 Stat. 1896) and section 2821 of the Military Construc-
tion Authorization Act for Fiscal Year 1995 (division B of Public 
Law 103-337; 108 Stat. 3057), is further amended by adding at 
the end the following new paragraphs: 
"(4) In lieu of entering into a lease under paragraph (1), or 
in place of an existing lease under that paragraph, the Secretary 
may convey, without consideration, the property described in that 
paragraph to the City of Oakland, California, the Port of Oakland, 
California, the City of Alameda, California, or the City of Richmond, 
California, under such terms and conditions as the Secretary consid-
ers appropriate. 
"(5) The exact acreage and legal description of any property 
conveyed under paragraph (4) shall be determined by a survey 
satisfactory to the Secretary. The cost of each survey shall be 
borne by the recipient of the property.". 
SEC. 2868. LAND 
CONVEYANCE, 
NAVAL 
WEAPONS 
INDUSTRIAL 
RESERVE PLANT, MCGREGOR, TEXAS. 
(a) CONVEYANCE AUTHORIZED.—(1) The Secretary of the Navy 
may convey, without consideration, to the City of McGregor, Texas 
(in this section referred to as the "City"), all right, title, and interest 
of the United States in and to a parcel of real property, including 
any improvements thereon, containing the Naval Weapons Indus-
trial Reserve Plant, McGregor, Texas. 
110 STAT. 578 
PUBLIC LAW 104-106—FEB. 10, 1996 
(2) After screening the facilities, equipment, and fixtures 
(including special tooling and special test equipment) located on 
the parcel for other uses by the Department of the Navy, the 
Secretary may include in the conveyance under paragraph (1) any 
facilities, equipment, and fixtures on the parcel not to be so used 
if the Secretary determines that manufacturing activities requiring 
the use of such facilities, equipment, and fixtures are likely to 
continue or be reinstated on the parcel after conveyance under 
paragraph (1). 
(b) LEASE AUTHORITY.—Until such time as the real property 
described in subsection (a)(1) is conveyed by deed, the Secretary 
may lease the property, along with improvements thereon, to the 
City in exchange for security services, fire protection services, and 
maintenance services provided by the City for the property. 
(c) CONDITION OF CONVEYANCE.—The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
City, directly or through an agreement with a public or private 
entity, use the conveyed property (or offer the conveyed property 
for use) for economic redevelopment to replace all or a part of 
the economic activity being lost at the parcel. 
(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a)( 1) shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the City. 
(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary 
may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) or a lease under subsection 
(b) as the Secretary considers appropriate to protect the interests 
of the United States. 
SEC. 2869. LAND CONVEYANCE, NAVAL SURFACE WARFARE CENTER, 
MEMPHIS, TENNESSEE. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may 
convey to the Memphis and Shelby County Port Commission, Mem-
phis, Tennessee (in this section referred to as the "Port"), all right, 
title, and interest of the United States in and to a parcel of real 
property (including any improvements thereon) consisting of 
approximately 26 acres that is located at the Carderock Division, 
Naval Surface Warfare Center, Memphis Detachment, Presidents 
Island, Memphis, Tennessee. 
(b) CONSIDERATION.—^As consideration for the conveyance of 
real property under subsection (a), the Port shall— 
(1) grant to the United States a restrictive easement in 
and to a parcel of real property consisting of approximately 
100 acres that is adjacent to the Memphis Detachment, Presi-
dents Island, Memphis, Tennessee; and 
(2) if the fair market value of the easement granted under 
paragraph (1) is less than the fair market value of the real 
property conveyed under subsection (a), provide the United 
States such additional consideration as the Secretary and the 
Port jointly determine appropriate so that the value of the 
consideration received by the United States under this sub-
section is equal to or greater than the fair market value of 
the real property conveyed under subsection (a). 
(c) CONDITION OF CONVEYANCE.—The conveyance authorized 
by subsection (a) shall be carried out in accordance with the provi-
sions of the Land Exchange Agreement between the United States-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 579 
and the Memphis and Shelby County Port Commission, Memphis, 
Tennessee. 
(d) DETERMINATION OF FAIR MARKET VALUE.—^The Secretary 
shall determine the fair market value of the real property to be 
conveyed under subsection (a) and of the easement to be granted 
under subsection (b)( 1). Such determinations shall be final. 
(e) USE OF PROCEEDS.—^The Secretary shall deposit any pro-
ceeds received under subsection (b)(2) as consideration for the 
conveyance of real property authorized under subsection (a) in 
the special account established pursuant to section 204(h)(2) of 
the Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 485(h)(2)). 
(f) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) and the easement to be granted under subsection (b)(1) shall 
be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Port. 
(g) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in connection with 
the conveyance authorized by subsection (a) and the easement 
granted under subsection (b)(1) as the Secretary considers appro-
priate to protect the interests of the United States. 
SEC. 2870. LAND CONVEYANCE, NAVY PROPERTY, FORT SHERIDAN, 
ILLINOIS. 
(a) CONVEYANCE AUTHORIZED.—Subject to subsection (b), the 
Secretary of the Navy may convey to any transferee selected under 
subsection (i) all right, title, and interest of the United States 
in and to a parcel of real property (including any improvements 
thereon) at Fort Sheridan, Illinois, consisting of approximately 182 
acres and comprising the Navy housing areas at Fort Sheridan. 
(b) REQUIREMENT FOR FEDERAL SCREENING OF PROPERTY.— 
The Secretary may not carry out the conveyance of property author-
ized by subsection (a) unless the Secretary determines that no 
department or agency of the Federal Government will accept the 
transfer of the property. 
(c) CONSIDERATION.—(1) As consideration for the conveyance 
under subsection (a), the transferee selected under subsection (i) 
shall— 
(A) convey to the United States a parcel of real property 
that meets the requirements of subsection (d); 
(B) design for and construct on the property conveyed under 
subparagraph (A) such housing facilities (including support 
facilities and infrastructure) to replace the housing facilities 
conveyed pursuant to the authority in subsection (a) as the 
Secretary considers appropriate; 
(C) pay the cost of relocating members of the Armed Forces 
residing in the housing facilities located on the real property 
conveyed pursuant to the authority in subsection (a) to the 
housing facilities constructed under subparagraph (B); 
(D) provide for the education of dependents of such mem-
bers under subsection (e); and 
(E) carry out such activities for the operation, maintenance, 
and improvement of the facilities constructed under subpara-
graph (B) as the Secretary and the transferee jointly determine 
appropriate. 
110 STAT. 580 
PUBLIC LAW 104-106—FEB. 10, 1996 
(2) The Secretary shall ensure that the fair market value of 
the consideration provided by the transferee under paragraph (1) 
is not less than the fair market value of the property interest 
conveyed by the Secretary under subsection (a). 
(d) REQUIREMENTS RELATING TO PROPERTY TO BE CONVEYED 
TO UNITED STATES.—^The property interest conveyed to the United 
States under subsection (c)(1)(A) by the transferee selected under 
subsection (i) shall— 
(1) be located not more than 25 miles from the Great 
Lakes Naval Training Center, Illinois; 
(2) be located in a neighborhood or area having social 
and economic conditions similar to the social and economic 
conditions of the area in which Fort Sheridan is located; and 
(3) be acceptable to the Secretary. 
(e) EDUCATION OF DEPENDENTS OF MEMBERS OF THE ARMED 
FORCES.—In providing for the education of dependents of members 
of the Armed Forces under subsection (c)(1)(D), the transferee 
selected under subsection (i) shall ensure that such dependents 
may enroll at the schools of one or more school districts in the 
vicinity of the real property conveyed to the United States under 
subsection (c)( 1)(A) which schools and districts— 
(1) meet such standards for schools and school districts 
as the Secretary shall establish; and 
(2) will continue to meet such standards after the enroll-
ment of such dependents regardless of the receipt by such 
school districts of Federal impact aid. 
(f) INTERIM RELOCATION OF MEMBERS OF THE ARMED FORCES.— 
Pending completion of the construction of all the housing facilities 
proposed to be constructed under subsection (c)(1)(B) by the trans-
feree selected under subsection (i), the Secretary may relocate— 
(1) members of the Armed Forces residing in housing facili-
ties located on the property to be conveyed pursuant to the 
authority in subsection (a) to the housing facilities that have 
been constructed by the transferee under such subsection 
(c)(1)(B); and 
(2) other Government tenants located on such property 
to other facilities. 
(g) APPLICABILITY OF CERTAIN AGREEMENTS.—^The property con-
veyed by the Secretary pursuant to the authority in subsection 
(a) shall be subject to the Memorandum of Understanding concern-
ing the Transfer of Certain Properties at Fort Sheridan, Illinois, 
dated August 8, 1991, between the Department of the Army and 
the Department of the Navy. 
(h) DETERMINATION OF FAIR MARKET VALUE.—The Secretary 
shall determine the fair market value of the real property interest 
to be conveyed under subsection (a) and of the consideration to 
be provided under subsection (c)(1). Such determination shall be 
final. 
(i) SELECTION OF TRANSFEREE.—<1) The Secretary shall use 
competitive procedures for the selection of a transferee under sub-
section (a). 
(2) In evaluating the offers of prospective transferees, the Sec-
retary shall— 
(A) consider such criteria as the Secretary considers to 
be appropriate to determine whether prospective transferees 
will be able to satisfy the consideration requirements specified 
in subsection (c)(1); and 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 581 
(B) consult with the communities and jurisdictions in the 
vicinity of Fort Sheridan (including the City of Lake Forest, 
the City of Highwood, and the City of Highland Park and 
the County of Lake, Illinois) in order to determine the most 
appropriate use of the property to be conveyed. 
(j) DESCRIPTIONS OF PROPERTY.—^The exact acreage and legal 
descriptions of the real property to be conveyed by the Secretary 
under subsection (a) and the real property to be conveyed under 
subsection (c)(1)(A) shall be determined by a survey satisfactory 
to the Secretary. The cost of the survey shall be borne by the 
transferee selected under subsection (i). 
(k) ADDITIONAL TEIRMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under this section as the Secretary considers appro-
priate to protect the interests of the United States. 
SEC. 2871. LAND CONVEYANCE, NAVAL COMMUNICATIONS STATION, 
STOCKTON, CALIFORNIA. 
(a) CONVEYANCE AUTHORIZED.—Subject to subsection (b), the 
Secretary of the Navy may convey to the Port of Stockton, California 
(in this section referred to as the "Port"), all right, title, and interest 
of the United States in and to a parcel of real property, including 
any improvements thereon, consisting of approximately 1,450 acres 
at the Naval Communication Station, Stockton, California. 
(b) REQUIREMENT FOR FEDERAL SCREENING OF PROPERTY.— 
The Secretary may not carry out the conveyance of property author-
ized by subsection (a) unless the Secretary determines that no 
department or agency of the Federal Government will accept the 
transfer of the property. 
(c) INTERIM LEASE.—Until such time as the real property 
described in subsection (a) is conveyed by deed, the Secretary may 
lease the property, along with improvements thereon, to the Port 
under terms and conditions satisfactory to the Secretary. 
(d) CONSIDERATION.—The conveyance may be made as a public 
benefit conveyance for port development as defined in section 203 
of the Federal Property and Administrative Services Act of 1949 
(40 U.S.C. 484) if the Port satisfies the criteria in such section 
and the regulations prescribed to implement such section. If the 
Port fails to qualify for a public benefit conveyance and still desires 
to acquire the property, the Port shall pay to the United States 
an amount equal to the fair market value of the property to be 
conveyed, as determined by the Secretary. 
(e) FEDERAL LEASE OF CONVEYED PROPERTY.—^As a condition 
for transfer of this property under subparagraph (a), the Secretary 
may require that the Port lease to the Department of Defense 
or any other Federal agency all or any part of the property being 
used by the Federal Government at the time of conveyance. Any 
such lease shall be made under the same terms and conditions 
as in force at the time of the conveyance. Such terms and conditions 
will continue to include payment to the Port for maintenance of 
facilities leased to the Federal Government. Such maintenance of 
the Federal premises shall be to the reasonable satisfaction of 
the United States, or as required by all applicable Federal, State, 
and local laws and ordinances. 
(f) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the property to be conveyed under subsection (a) 
110 STAT. 582 
PUBLIC LAW 104-106—FEB. 10, 1996 
shall be determined by a survey satisfactory to the Secretary. The 
cost of the survey shall be borne by the Port. 
(g) ADDITIONAL TERMS.—The Secretary may require such addi-
tional terms and conditions in connection with the conveyance under 
subsection (a) or the lease under subsection (c) as the Secretary 
considers appropriate to protect the interests of the United States. 
SEC. 2872. LEASE OF PROPERTY, NAVAL AIR STATION AND MARINE 
CORPS AIR STATION, MIRAMAR, CALIFORNIA-
(a) LEASE AUTHORIZED.—Notwithstanding section 2692(a)(1) of 
title 10, United States Code, the Secretary of the Navy may lease 
to the City of San Diego, California (in this subsection referred 
to as the "City"), the parcel of real property, including improvements 
thereon, described in subsection (b) in order to permit the City 
to carry out activities on the parcel relating to solid waste manage-
ment, including the operation and maintenance of one or more 
solid waste landfills. Pursuant to the lease, the Secretary may 
authorize the City to construct and operate on the parcel facilities 
related to solid waste management, including a sludge processing 
facility. 
(b) COVERED PROPERTY.—The parcel of property to be leased 
under subsection (a) is a parcel of real property consisting of 
approximately 1,400 acres that is located at Naval Air Station, 
Miramar, California, or Marine Corps Air Station, Miramar, Cali-
fornia. 
(c) LEASE TERM.—The lease authorized under subsection (a) 
shall be for an initial term of not more than 50 years. Under 
the lease, the Secretary may provide the City with an option to 
extend the lease for such number of additional periods of such 
length as the Secretary considers appropriate. 
(d) FORM OF CONSIDERATION.—^The Secretary may provide in 
the lease under subsection (a) for the provision by the City of 
in-kind consideration under the lease. 
(e) USE OF MONEY RENTALS.—In such amounts as are provided 
in advance in appropriation Acts, the Secretary may use money 
rentals received by the Secretary under the lease authorized under 
subsection (a) to carry out the following programs at Department 
of the Navy installations that utilize the solid waste landfill or 
landfills located on the leased property: 
(1) Environmental programs, including natural resource 
management programs, recycling programs, and pollution 
prevention programs. 
(2) Programs to improve the quality of military life, includ-
ing programs to improve military unaccompanied housing and 
military family housing. 
(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary 
may 
require such additional terms and conditions in connection with 
the lease under subsection (a) as the Secretary considers appro-
priate to protect the interests of the United States. 
(g) DEFINITIONS.—In this section, the terms "sludge", "solid 
waste", and "solid waste management" have the meanings given 
such terms in paragraphs (26A), (27), and (28), respectively, of 
section 1004 of the Solid Waste Disposal Act (42 U.S.C. 6903). 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 583 
PART III—AIR FORCE CONVEYANCES 
SEC. 2874. LAND ACQUISITION OR EXCHANGE, SHAW AIR FORCE BASE, 
SOUTH CAROLINA. 
(a) LAND ACQUISITION.—By means of an exchange of property, 
acceptance as a gift, or other means that do not require the use 
of appropriated funds, the Secretary of the Air Force may acquire 
all right, title, and interest in and to a parcel of real property 
(together with any improvements thereon) consisting of approxi-
mately 1,100 acres and located adjacent to the eastern end of 
Shaw Air Force Base, South Carolina, and extending to Stamey 
Livestock Road in Sumter County, South Carolina. 
(b) LAND EXCHANGE AUTHORIZED.—For purposes of acquiring 
the real property described in subsection (a), the Secretary may 
participate in a land exchange and convey all right, title, and 
interest of the United States in and to a parcel of real property 
in the possession of the Air Force i
f
— 
(1) the Secretary determines that the land exchange is 
in the best interests of the Air Force; and 
(2) the fair market value of the parcel to be conveyed 
by the Secretary does not exceed the fair market value of 
the parcel to be acquired by the Secretary. 
(c) DETERMINATIONS OF FAIR MARKET VALUE.—The Secretary 
shall determine the fair market value of the parcels of real property 
to be exchanged, accepted, or otherwise acquired pursuant to sub-
section (a) and exchanged pursuant to subsection (b). Such deter-
minations shall be final. 
(d) REVERSION OF GIFT CONVEYANCE.—If the Secretary acquires 
the real property described in subsection (a) by way of gift, the 
Secretary may accept in the deed of conveyance terms or conditions 
that require that the land be reconveyed to the donor, or the 
heirs of the donor, if Shaw Air Force Base ceases operations and 
is closed. 
(e) DESCRIPTIONS OF PROPERTY.—^The exact acreage and legal 
descriptions of the parcels of real property to be exchanged, 
accepted, or otherwise acquired pursuant to subsection (a) and 
exchanged pursuant to subsection (b) shall be determined by a 
survey satisfactory to the Secretary. 
(f) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in connection with 
the acquisition under subsection (a) or conveyance under subsection 
(b) as the Secretary considers appropriate to protect the interests 
of the United States. 
SEC. 2875. LAND CONVEYANCE, ELMENDORF AIR FORCE BASE, ALASKA. 
(a) CONVEYANCE TO PRIVATE PERSON AUTHORIZED.—The Sec-
retary of the Air Force may convey to such private person as 
the Secretary considers appropriate, all right, title, and interest 
of the United States in and to a parcel of real property consisting 
of approximately 31.69 acres that is located at Elmendorf Air Force 
Base, Alaska, and identified in land lease W-95-507-ENG-58. 
(b) CONSIDERATION.—^As consideration for the conveyance under 
subsection (a), the purchaser shall pay to the United States an 
amount equal to the fair market value of the real property to 
be conveyed, as determined by the Secretary. In determining the 
fair market value of the real property, the Secretary shall consider 
110 STAT. 584 
PUBLIC LAW 104-106—FEB. 10, 1996 
the property as encumbered by land lease W-95-507-ENG—58, 
with an expiration date of June 13, 2024. 
(c) CONDITION OF CONVEYANCE.—The conveyance authorized 
by subsection (a) shall be subject to the condition that the purchaser 
of the property— 
(1) permit the lease of the apartment complex located on 
the property by members of the Armed Forces stationed at 
Elmendorf Air Force Base and their dependents; and 
(2) maintain the apartment complex in a condition suitable 
for such leases. 
(d) DEPOSIT OF PROCEEDS.—The Secretary shall deposit the 
amount received from the purchaser under subsection (b) in the 
special account established under section 204(h)(2) of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 
485(h)(2)). 
(e) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the purchaser of the 
real property. 
(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers appro-
priate to protect the interests of the United States. 
SEC. 2876. LAND 
CONVEYANCE, 
RADAR 
BOMB 
SCORING 
SITE, 
FORSYTH, MONTANA. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the Air Force 
may convey, without consideration, to the City of Forsyth, Montana 
(in this section referred to as the "City"), all right, title, and interest 
of the United States in and to the parcel of property (including 
any improvements thereon) consisting of approximately 58 acres 
located in Forsyth, Montana, which has served as a support complex 
and recreational facilities for the Radar Bomb Scoring Site, Forsyth, 
Montana. 
(b) CONDITION OF CONVEYANCE.—^The conveyance under sub-
section (a) shall be subject to the condition that the City— 
(1) utilize the property and recreational facilities conveyed 
under that subsection for housing and recreation purposes; 
or 
(2) enter into an agreement with an appropriate public 
or private entity to lease such property and facilities to that 
entity for such purposes. 
(c) REVERSION.—If the Secretary determines at any time that 
the property conveyed under subsection (a) is not being utilized 
in accordance with paragraph (1) or paragraph (2) of subsection 
(b), all right, title, and interest in and to the conveyed property, 
including any improvements thereon, shall revert to the United 
States and the United States shall have the right of immediate 
entry onto the property. 
(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of the property conveyed under this section shall be 
determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the City. 
(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 585 
the conveyance under this section as the Secretary determines 
appropriate to protect the interests of the United States. 
SEC. 2877. LAND CONVEYANCE, RADAR BOMB SCORING SITE, POWELL, 
WYOMING. 
(a) CONVEYANCE AUTHORIZED.—^The Secretary of the Air Force 
may convey, without consideration, to the Northwest College Board 
of Trustees (in this section referred to as the "Board"), all right, 
title, and interest of the United States in and to a parcel of real 
property (including any improvements thereon) consisting of 
approximately 24 acres located in Powell, Wyoming, which has 
served as the location of a support complex, recreational facilities, 
and housing facilities for the Radar Bomb Scoring Site, Powell, 
Wyoming. 
(b) CONDITION OF CONVEYANCE.—^The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
Board use the property conveyed under that subsection for housing 
and recreation purposes and for such other purposes as the Sec-
retary and the Board jointly determine appropriate. 
(c) REVERSIONARY INTEREST.—During the five-year 
period 
beginning on the date that the Secretary makes the conveyance 
authorized under subsection (a), if the Secretary determines that 
the conveyed property is not being used in accordance with sub-
section (b), all right, title, and interest in and to the conveyed 
property, including any improvements thereon, shall revert to the 
United States and the United States shall have the right of imme-
diate entry onto the property. 
(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of the property conveyed under this section shall be 
determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Board. 
(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers appro-
priate to protect the interests of the United States. 
SEC. 2878. LAND CONVEYANCE, AVON PARK AIR FORCE RANGE, 
FLORIDA. 
(a) CONVEYANCE AUTHORIZED.—^The Secretary of the A r Force 
may convey, without consideration, to Highlands County, Florida 
(in this section referred to as the "County"), all right, title, and 
interest of the United States in and to a parcel of real property, 
together with any improvements thereon, located within the bound-
aries of the Avon Park A r Force Range near Sebring, Florida, 
which has previously served as the location of a support complex 
and recreational facilities for the Avon Park Air Force Range. 
(b) CONDITION OF CONVEYANCE.—The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
County, directly or through an agreement with an appropriate 
public or private entity, use the conveyed property, including the 
support complex and recreational facilities, for operation of a juve-
nile or other correctional facility. 
(c) REVERSIONARY INTEREST.—If the Secretary determines at 
any time that the property conveyed under subsection (a) is not 
being used in accordance with subsection (b), all right, title, and 
interest in the property, including any improvements thereon, shall 
revert to the United States, and the United States shall have 
the right of immediate entry onto the property. 
29-194 O - 96 - 20 : QL 3 Part 1 
110 STAT. 586 
PUBLIC LAW 104-106—FEB. 10, 1996 
(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the County. 
(e) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers appro-
priate to protect the interests of the United States. 
Subtitle E—Land Conveyances Involving 
Utilities 
SEC. 2881. CONVEYANCE OF RESOURCE RECOVERY FACILITY, FORT 
DIX, NEW JERSEY. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 
convey to Burlington County, New Jersey (in this section referred 
to as the "County"), all right, title, and interest of the United 
States in and to a parcel of real property at Fort Dix, New Jersey, 
consisting of approximately six acres and containing a resource 
recovery facility, known as the Fort Dix resource recovery facility. 
(b) RELATED EASEMENTS.—^The Secretary may grant to the 
County any easement that is necessary for access to and operation 
of the resource recovery facility conveyed under subsection (a). 
(c) REQUIREMENT RELATING TO CONVEYANCE.—The Secretary 
may not carry out the conveyance of the resource recovery facility 
authorized by subsection (a) unless the County agrees to accept 
the facility in its existing condition at the time of the conveyance. 
(d) CONDITIONS ON CONVEYANCE.—The conveyance of the 
resource recovery facility authorized by subsection (a) is subject 
to the following conditions: 
(1) That the County provide refuse and steam service to 
Fort Dix, New Jersey, at the rate established by the appropriate 
Federal or State regulatory authority. 
(2) That the County comply with all applicable environ-
mental laws and regulations (including any permit or license 
requirements) relating to the resource recovery facility. 
(3) That the County assume full responsibility for owner-
ship, operation, maintenance, repair, and all regulatory compli-
ance requirements for the resource recovery facility. 
(4) That the County not commence any expansion of the 
resource recovery facility without approval of such expansion 
by the Secretary. 
(e) DESCRIPTION OF THE PROPERTY.—The exact acreage and 
legal description of the real property to be conveyed under sub-
section (a), and of any easements to be granted under subsection 
(b), shall be determined by a survey satisfactory to the Secretary. 
The cost of such survey shall be borne by the County. 
(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) and the grant of any easement 
under subsection (b) as the Secretary considers appropriate to pro-
tect the interests of the United States. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 587 
SEC. 2882. CONVEYANCE OF WATER AND WASTEWATER TREATMENT 
PLANTS, FORT GORDON, GEORGIA. 
(a) CONVEYANCE AUTHORIZED.—^The Secretary of the Army may 
convey to the city of Augusta, Georgia (in this section referred 
to as the "City"), all right, title, and interest of the United States 
to several parcels of real property located at Fort Gordon, Georgia, 
and consisting of approximately seven acres each. The parcels are 
improved with a water filtration plant, water distribution system 
with storage tanks, sewage treatment plant, and sewage collection 
system. 
(b) RELATED EASEMENTS.—The Secretary may grant to the City 
any easement that is necessary for access to the real property 
conveyed under subsection (a) and operation of the water and 
wastewater treatment plants and distribution and collection sys-
tems conveyed under subsection (a). 
(c) REQUIREMENT RELATING TO CONVEYANCE.—The Secretary 
may not carry out the conveyance of the water and wastewater 
treatment plants and distribution and collection systems authorized 
by subsection (a) unless the City agrees to accept the water and 
wastewater treatment plants and distribution and collection sys-
tems in their existing condition at the time of the conveyance. 
(d) CONDITIONS ON CONVEYANCE.—The conveyance authorized 
by subsection (a) is subject to the following conditions: 
(1) That the City provide water and sewer service to Fort 
Gordon, Georgia, at a rate established by the appropriate Fed-
eral or State regulatory authority. 
(2) That the City comply with all applicable environmental 
laws and regulations (including any permit or license require-
ments) regarding the real property conveyed under subsec-
tion (a). 
(3) That the City assume full responsibility for ownership, 
operation, maintenance, repair, and all regulatory compliance 
requirements for the water and wastewater treatment plants 
and distribution and collection systems. 
(4) That the City not commence any expansion of the 
water and wastewater treatment plants and distribution and 
collection systems without approval of such expansion by the 
Secretary. 
(e) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a), and of any easements granted under subsection (b), shall be 
determined by a survey satisfactory to the Secretary. The cost 
of such survey shall be borne by the City. 
(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) and the grant of any easement 
under subsection (b) as the Secretary considers appropriate to pro-
tect the interests of the United States. 
SEC. 2883. CONVEYANCE OF ELECTRICITY DISTRIBUTION 
SYSTEM, 
FORT IRWIN, CALIFORNIA. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 
convey to the Southern California Edison Company, California (in 
this section referred to as the "Company"), all right, title, and 
interest of the United States in and to the electricity distribution 
system located at Fort Irwin, California. 
110 STAT. 588 
PUBLIC LAW 104-106—FEB. 10, 1996 
(b) DESCRIPTION OF SYSTEM AND CONVEYANCE.—^The electricity 
distribution system authorized to be conveyed under subsection 
(a) consists of approximately 115 miles of electricity distribution 
lines (including poles, switches, reclosers, transformers, regulators, 
switchgears, and service lines) and includes the equipment, fixtures, 
structures, and other improvements the Federal Government uti-
lizes to provide electricity services at Fort Irwin. The system does 
not include any real property. 
(c) RELATED EASEMENTS.—The Secretary may grant to the Com-
pany any easement that is necessary for access to and operation 
of the electricity distribution system conveyed under subsection 
(a). 
(d) REQUIREMENT RELATING TO CONVEYANCE.—The Secretary 
may not carry out the electricity distribution system authorized 
by subsection (a) unless the Company agrees to accept the electricity 
distribution system in its existing condition at the time of the 
conveyance. 
(e) CONDITIONS ON CONVEYANCE.—The conveyance authorized 
by subsection (a) is subject to the following conditions: 
(1) That the Company provide electricity service to Fort 
Irwin, California, at a rate established by the appropriate Fed-
eral or State regulatory authority. 
(2) That the Company comply with all applicable environ-
mental laws and regulations (including any permit or license 
requirements) regarding the electricity distribution system. 
(3) That the Company assume full responsibility for owner-
ship, operation, maintenance, repair, and all regulatory compli-
ance requirements for the electricity distribution system. 
(4) That the Company not commence any expansion of 
the electricity distribution system without approval of such 
expansion by the Secretary. 
(f) DESCRIPTION OF EASEMENT.—^The exact acreage and legal 
description of any easement granted under subsection (c) shall 
be determined by a survey satisfactory to the Secretary. The cost 
of such survey shall be borne by the Company. 
(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) and the grant of any easement 
under subsection (c) as the Secretary considers appropriate to pro-
tect the interests of the United States. 
SEC. 2884. CONVEYANCE OF WATER TREATMENT PLANT, FORT PICK-
ETT, VIRGINIA. 
(a) AUTHORITY TO CONVEY.—(1) The Secretary of the Army 
may convey to the Town of Blackstone, Virginia (in this section 
referred to as the "Town"), all right, title, and interest of the 
United States in and to the property described in paragraph (2). 
(2) The property referred to in paragraph (1) is the following 
property located at Fort Pickett, Virginia: 
(A) A parcel of real property consisting of approximately 
10 acres, including a reservoir and improvements thereon, the 
site of the Fort Pickett water treatment plant. 
(B) Any equipment, fixtures, structures, or other improve-
ments (including any water transmission lines, water distribu-
tion and service lines, fire hydrants, water pumping stations, 
and other improvements) not located on the parcel described 
in subparagraph (A) that are jointly identified by the Secretary 
PUBLIC LAW 104-10&—FEB. 10, 1996 
110 STAT. 589 
and the Town as owned and utilized by the Federal Government 
in order to provide water to and distribute water at Fort Pickett. 
(b) RELATED EASEMENTS.—^The Secretary may grant to the 
Town the following easements relating to the conveyance of the 
property authorized by subsection (a): 
(1) Such easements, if any, as the Secretary and the Town 
jointly determine are necessary in order to provide access to 
the water distribution system referred to in paragraph (2) of , 
such subsection for maintenance, safety, and other purposes. 
(2) Such easements, if any, as the Secretary and the Town 
jointly determine are necessary in order to provide access to 
the finished water lines from the system to the Town. 
(3) Such rights of way appurtenant, if any, as the Secretary 
and the Town jointly determine are necessary in order to satisfy 
requirements imposed by any Federal, State, or municipal 
agency relating to the maintenance of a buffer zone around 
the water distribution system. 
(c) WATER RIGHTS.—^The Secretary shall grant to the Town 
as part of the conveyance under subsection (a) all right, title, 
and interest of the United States in and to any water of the 
Nottoway River, Virginia, that is connected with the reservoir 
referred to in paragraph (2)(A) of such subsection. The grant of 
such water rights shall not impair the right that any other local 
jurisidiction may have to withdraw water from the Nottoway River, 
on or after the date of the enactment of this Act, pursuant to 
the law of the Commonwealth of Virginia. 
(d) REQUIREMENTS RELATING TO CONVEYANCE.—(1) The Sec-
retary may not carry out the conveyance of the water distribution 
system authorized under subsection (a) unless the Town agrees 
to accept the system in its existing condition at the time of the 
conveyance. 
(2) The Secretary shall complete any environmental removal 
or remediation required under the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
et seq.) with respect to the system to be conveyed under this 
section before carrying out the conveyance. 
(e) CONDITIONS ON CONVEYANCE.—The conveyance authorized 
in subsection (a) shall be subject to the following conditions: 
(1) That the Town reserve for provision to Fort Pickett, 
and provide to Fort Pickett on demand, not less than 1,500,000 
million gallons per day of treated water from the water distribu-
tion system. 
(2) That the Town provide water to and distribute water 
at Fort Pickett at a rate established by the appropriate Federal 
or State regulatory authority. 
(3) That the Town maintain and operate the water distribu-
tion system in compliance with all applicable Federal and State 
environmental laws and regulations (including any permit and 
license requirements). 
(f) DESCRIPTION OF PROPERTY.—The exact legal description of 
the property to be conveyed under subsection (a), of any easements 
granted under subsection (b), and of any water rights granted 
under subsection (c) shall be determined by a survey and other 
means satisfactory to the Secretary. The cost of any survey or 
other services performed at the direction of the Secretary under 
the authority in the preceding sentence shall be borne by the 
Town. 
110 STAT. 590 
PUBLIC LAW 104-106—FEB. 10, 1996 
(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary 
may 
require such additional terms and conditions in connection with 
the conveyance authorized under subsection (a), the easements 
granted under subsection (b), and the water rights granted under 
subsection (c) that the Secretary considers appropriate to protect 
the interests of the United States. 
Subtitle F—Other Matters 
SEC. 2891. AUTHORITY TO USE FUNDS FOR CERTAIN EDUCATIONAL 
PURPOSES. 
Section 2008 of title 10, United States Code, is amended by 
striking out "section 10" and all that follows through the period 
at the end and inserting in lieu thereof "construction, as defined 
in section 8013(3) of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7713(3)), or to carry out section 8008 of 
such Act (20 U.S.C. 7708), relating to the provision of assistance 
to certain school facilities under the impact aid program.". 
10 u s e 2805 
SEC. 2892. DEPARTMENT OF DEFENSE LABORATORY REVITALIZATION 
note. 
DEMONSTRATION PROGRAM. 
(a) PROGRAM AUTHORIZED.—^The Secretary of Defense may carry 
out a program (to be known as the "Department of Defense Labora-
tory Revitalization Demonstration Program") for the revitalization 
of Department of Defense laboratories. Under the program, the 
Secretary may carry out minor military construction projects in 
accordance with subsection (b) and other applicable law to improve 
Department of Defense laboratories covered by the program. 
(b) 
INCREASED MAXIMUM AMOUNTS APPLICABLE TO MINOR 
CONSTRUCTION PROJECTS.—For purpose of any military construction 
project carried out under the program— 
(1) the amount provided in the second sentence of sub-
section (a)(1) of section 2805 of title 10, United States Code, 
shall be deemed to be $3,000,000; 
(2) the amount provided in subsection (b)(1) of such section 
shall be deemed to be $1,500,000; and 
(3) the amount provided in subsection (c)(1)(B) of such 
section shall be deemed to be $1,000,000. 
(c) PROGRAM REQUIREMENTS.^ 1) Not later than 30 days before 
commencing the program, the Secretary shall— 
(A) designate the Department of Defense laboratories at 
which construction may be carried out under the program; 
and 
(B) establish procedures for the review and approval of 
requests from such laboratories to carry out such construction. 
(2) The laboratories designated under paragraph (1)(A) may 
not include Department of Defense laboratories that are contractor 
owned. 
Notification. 
(3) The Secretary shall notify Congress of the laboratories des-
ignated under paragraph (1)(A). 
(d) REPORT.—^Not later than February 1, 1998, the Secretary 
shall submit to Congress a report on the program. The report 
shall include the Secretary's conclusions and recommendations 
regarding the desirability of extending the authority set forth in 
subsection (b) to cover all Department of Defense laboratories. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 591 
(e) EXCLUSIVITY OF PROGRAM.—Nothing in this section may 
be construed to Hmit any other authority provided by law for 
any military construction project at a Department of Defense labora-
tory covered by the program. 
(f) DEFINITIONS.—In this section: 
(1) The term "laboratory" includes— 
(A) a research, engineering, and development center; 
(B) a test and evaluation activity owned, funded, and 
operated by the Federal Government through the Depart-
ment of Defense; and 
(C) a supporting facility of a laboratory. 
(2) The term "supporting facility", with respect to a labora-
tory, means any building or structure that is used in support 
of research, development, test, and evaluation at the laboratory. 
(g) EXPIRATION OF AUTHORITY.—The Secretary may not com-
mence a construction project under the program after September 
30, 1998. 
SEC. 2893. AUTHORITY FOR PORT AUTHORITY OF STATE OF MIS-
SISSIPPI TO USE NAVY PROPERTY AT NAVAL CONSTRUC-
TION BATTALION CENTER, GULFPORT, MISSISSIPPI. 
(a) JOINT USE AGREEMENT AUTHORIZED.—^The Secretary of the 
Navy may enter into an agreement with the Port Authority of 
the State of Mississippi (in this section referred to as the "Port 
Authority"), under which the Port Authority may use real property 
comprising up to 50 acres located at the Naval Construction Battal-
ion Center, Gulfport, Mississippi (in this section referred to as 
the "Center"). 
(b) TERM OF AGREEMENT.—^The agreement authorized under 
subsection (a) may be for an initial period of not more than 15 
years. Under the agreement, the Secretary shall provide the Port 
Authority with an option to extend the agreement for at least 
three additional periods of five years each. 
(c) CONDITIONS ON USE.—The agreement authorized under sub-
section (a) shall require the Port Authority— 
(1) to suspend operations under the agreement in the event 
Navy contingency operations are conducted at the Center; and 
(2) to use the property covered by the agreement in a 
manner consistent with Navy operations conducted at the 
Center. 
(d) CONSIDERATION.—(1) As consideration for the use of the 
property covered by the agreement under subsection (a), the Port 
Authority shall pay to the Navy an amount equal to the fair 
market rental value of the property, as determined by the Secretary 
taking into consideration the Port Authority's use of the property. 
(2) The Secretary may include a provision in the agreement 
requiring the Port Authority— 
(A) to pay the Navy an amount (as determined by the 
Secretary) to cover the costs of replacing at the Center any 
facilities vacated by the Navy on account of the agreement 
or to construct suitable replacement facilities for the Navy; 
and 
(B) to pay the Navy an amount (as determined by the 
Secretary) for the costs of relocating Navy operations from 
the vacated facilities to the replacement facilities. 
(e) CONGRESSIONAL, NOTIFICATION.—The Secretary may not 
Reports, 
enter into the agreement authorized by subsection (a) until the 
110 STAT. 592 
PUBLIC LAW 104-106—FEB. 10, 1996 
end of the 21-day period beginning on the date on which the 
Secretary submits to Congress a report containing an explanation 
of the terms of the proposed agreement and a description of the 
consideration that the Secretary expects to receive under the agree-
ment. 
(f) USE OF PAYMENT.—(1) In such amounts as are provided 
in advance in appropriation Acts, the Secretary may use amounts 
paid under subsection (d)(1) to pay for general supervision, adminis-
tration, and overhead expenses and for improvement, maintenance, 
repair, construction, or restoration of the roads, railways, and facili-
ties serving the Center. 
(2) In such amounts as are provided in advance in appropriation 
Acts, the Secretary may use amounts paid under subsection (d)(2) 
to pay for constructing new facilities, or making modifications to 
existing facilities, that are necessary to replace facilities vacated 
by the Navy on account of the agreement under subsection (a) 
and for relocating operations of the Navy from the vacated facilities 
to replacement facilities. 
(g) CONSTRUCTION BY PORT AUTHORITY.—The Secretary may 
authorize the Port Authority to demolish existing facilities located 
on the property covered by the agreement under subsection (a) 
and, consistent with the restriction specified in subsection (c)(2), 
construct new facilities on the property for joint use by the Port 
Authority and the Navy. 
(h) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary 
may 
require such additional terms and conditions in connection with 
the agreement authorized under subsection (a) as the Secretary 
considers appropriate to protect the interests of the United States. 
SEC. 2894. PROHIBITION ON JOINT USE OF NAVAL AIR STATION AND 
MARINE CORPS AIR STATION, MIRAMAR, CALIFORNIA. 
The Secretary of the Navy may not enter into any agreement 
that provides for or permits civil aircraft to regularly use Naval 
Air Station or Marine Corps Air Station, Miramar, California. 
SEC. 2895. REPORT 
REGARDING ARMY WATER 
CRAFT 
SUPPORT 
FACILITIES AND ACTIVITIES. 
Not later than February 15, 1996, the Secretary of the Army 
shall submit to Congress a report setting forth— 
(1) the location, assets, and mission of each Army facility, 
active or reserve component, that supports water transportation 
operations; 
(2) an infrastructure inventory and utilization rate of each 
Army facility supporting water transportation operations; 
(3) options for consolidating these operations to reduce 
overhead; and 
(4) actions that can be taken to respond affirmatively to 
requests from the residents of Marcus Hook, Pennsylvania, 
to close the Army Reserve facility located in Marcus Hook 
and make the facility available for use by the community. 
SEC. 2896. RESIDUAL VALUE REPORTS. 
(a) REPORTS REQUIRED.—The Secretary of Defense, in coordina-
tion with the Director of the Office of Management and Budget, 
shall submit to the congressional defense committees status reports 
on the results of residual value negotiations between the United 
States and Germany. Such status reports shall be submitted within 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 593 
30 days after the receipt of such reports by the Office of Manage-
ment and Budget. 
(b) CONTENT OF STATUS REPORTS.—The status reports required 
by subsection (a) shall include the following information: 
(1) The estimated residual value of United States capital 
value and improvements to facilities in Germany that the 
United States has turned over to Germany. 
(2) The actual value obtained by the United States for 
each facility or installation turned over to Germany. 
(3) The reasons for any difference between the estimated 
and actual value obtained. 
SEC. 2897. SENSE 
OF 
CONGRESS 
AND REPORT 
REGARDING 
FITZSIMONS ARMY MEDICAL CENTER, COLORADO. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Fitzsimons Army Medical Center in Aurora, Colorado, 
was approved for closure in 1995 under the Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX 
of Public Law 101-510; 10 U.S.C. 2687 note). 
(2) The University of Colorado Health Sciences Center and 
the University of Colorado Hospital Authority are in urgent 
need of space to maintain their ability to deliver health care 
to meet the growing demand for their services. 
(3) Reuse of the Fitzsimons Army Medical Center at the 
earliest opportunity would provide significant benefit to the 
cities of Aurora, Colorado, and Denver, Colorado. 
(4) Reuse of the Fitzsimons Army Medical Center by the 
communities in the vicinity of the center will ensure that the 
center is fully utilized, thereby providing a benefit to such 
communities. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that— 
(1) determinations as to the use by other departments 
and agencies of the Federal Government of buildings and prop-
erty at military installations approved for closure under the 
Defense Base Closure and Realignment Act of 1990, including 
Fitzsimons Army Medical Center, Colorado, should be com-
pleted as soon as practicable; 
(2) the Secretary of Defense should consider the expedited 
transfer of approprieite facilities (including facilities that remain 
operational) at such installations to the redevelopment authori-
ties for such installations in order to ensure continuity of use 
of such facilities after the closure of such installations, in 
particular, the Secretary should consider the expedited transfer 
of the Fitzsimons Army Medical Center because of the signifi-
cant preparation underway by the redevelopment authority 
concerned; 
(3) the Secretary should not enter into leases with redevel-
opment authorities for facilities at such installations until the 
Secretary determines that such leases fall within the categorical 
exclusions established by the Secretary pursuant to the 
National Environmental PoHcy Act (42 U.S.C. 4321 et seq.). 
(c) REPORT.—(1) Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report on the closure 
and redevelopment of Fitzsimons Army Medical Center. 
(2) The report shall include the following: 
110 STAT. 594 
PUBLIC LAW 104-106—FEB. 10, 1996 
(A) The results of the determinations as to the use of 
buildings and property at Fitzsimons Army Medical Center 
by other departments and agencies of the Federal Government 
under section 2905(b)(1) of the Defense Base Closure and 
Realignment Act of 1990. 
(B) A description of any actions taken to expedite such 
determinations. 
(C) A discussion of any impediments raised as a result 
of such determinations to the transfer or lease of Fitzsimons 
Army Medical Center. 
(D) A description of any actions taken by the Secretary 
to lease Fitzsimons Army Medical Center to the redevelopment 
authority. 
(E) The results of any environmental reviews under the 
National Environmental Policy Act in which such a lease would 
fall into the categorical exclusions established by the Secretary 
of the Army. 
(F) The results of the environmental baseline survey 
regarding Fitzsimons Army Medical Center and a finding of 
suitability or nonsuitability. 
l
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TITLE XXIX—LAND CONVEYANCES 
IN-
ConservationAct 
v O L V I N G J O L I E T A R M Y 
A M M U N I T I O N 
16 use 1609 
PLANT, ILLINOIS 
SEC. 2901. SHORT TITLE. 
This title may be cited as the "Illinois Land Conservation 
Act of 1995". 
SEC. 2902. DEFINITIONS. 
For purposes of this title, the following definitions apply: 
(1) ADMINISTRATOR.—The term "Administrator" means the 
Administrator of the United States Environmental Protection 
Agency. 
(2) AGRICULTURAL PURPOSES.—The term "agricultural pur-
poses" means the use of land for row crops, pasture, hay, 
and grazing. 
(3) ARSENAL.—The term "Arsenal" means the Joliet Army 
Ammunition Plant located in the State of Illinois. 
(4) ARSENAL LAND USE CONCEPT.—The term "Arsenal land 
use concept" means the land use proposals that were developed 
and unanimously approved on May 30, 1995, by the Joliet 
Arsenal Citizen Planning Commission. 
(5) CERCLA.—The term "CERCLA" means the Comprehen-
sive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601 et seq.). 
(6) ENVIRONMENTAL LAW.—^The term "environmental law" 
means all applicable Federal, State, and local laws, regulations, 
and requirements related to protection of human health, natu-
ral and cultural resources, or the environment. Such term 
includes CERCLA, the Solid Waste Disposal Act (42 U.S.C. 
6901 et seq.), the Federal Water Pollution Control Act (33 
U.S.C. 1251 et seq.), the Clean Air Act (42 U.S.C. 7401 et 
seq.), the Federal Insecticide, Fungicide, and Rodenticide Act 
(7 U.S.C. 136 et seq.), the Toxic Substances Control Act (15 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 595 
U.S.C. 2601 et seq.)., and the Safe Drinking Water Act (42 
U.S.C. 300fetseq.). 
(7) HAZARDOUS SUBSTANCE.—The term "hazardous sub-
stance" has the meaning given such term by section 101(14) 
of CERCLA(42 U.S.C. 9601(14)). 
(8) MNP.—The term "MNP" means the Midewin National 
Tallgrass Prairie estabhshed pursuant to section 2914 and man-
aged as a part of the National Forest System. 
(9) PERSON.—The term "person" has the meaning given 
such term by section 101(21) of CERCLA (42 U.S.C. 9601(21)). 
(10) POLLUTANT OR CONTAMINANT.—^The term "pollutant 
or contaminant" has the meaning given such term by section 
101(33) of CERCLA (42 U.S.C. 9601(33)). 
(11) RELEASE.—The term "release" has the meaning given 
such term by section 101(22) of CERCLA (42 U.S.C. 9601(22)). 
(12) RESPONSE ACTION.—^The term "response action" has 
the meaning given the term "response" by section 101(25) of 
CERCLA (42 U.S.C. 9601(25)). 
Subtitle A—Conversion of Joliet Army Am-
munition 
Plant to Midewin 
National 
Tallgrass Prairie 
SEC. 2911. PRINCIPLES OF TRANSFER. 
(a) LAND USE PLAN.—The Congress ratifies in principle the 
proposals generally identified by the land use plan which was 
developed by the Joliet Arsenal Citizen Planning Commission and 
unanimously approved on May 30, 1995. 
(b) TRANSFER WITHOUT REIMBURSEMENT.—The area constitut-
ing the Midewin National Tallgrass Prairie shall be transferred, 
without reimbursement, to the Secretary of Agriculture. 
(c) MANAGEMENT OF MNP.—Management by the Secretary of 
Agriculture of those portions of the Arsenal transferred to the 
Secretary under this title shall be in accordance with sections 
2914 and 2915 regarding the Midewin National Tallgrass Prairie. 
(d) SECURITY MEASURES.—The Secretary of the Army and the 
Secretary of Agriculture shall each provide and maintain physical 
and other security measures on such portion of the Arsenal as 
is under the administrative jurisdiction of such Secretary, unless 
the Secretary of the Army and the Secretary of Agriculture agree 
otherwise. Such security measures (which may include fences and 
natural barriers) shall include measures to prevent members of 
the public from gaining unauthorized access to such portions of 
the Arsenal as are under the administrative jurisdiction of such 
Secretary and that may endanger health or safety. 
(e) COOPERATIVE AGREEMENTS.—^The Secretary of the Army, 
the Secretary of Agriculture, and the Administrator are individually 
and collectively authorized to enter into cooperative agreements 
and memoranda of understanding among each other and with other 
affected Federal agencies. State and local governments, private 
organizations, and corporations to carry out the purposes for which 
the Midewin National Tallgrass Prairie is established. 
(f) INTERIM ACTIVITIES OF THE SECRETARY OF AGRICULTURE.— 
Prior to transfer and subject to such reasonable terms and condi-
tions as the Secretary of the Army may prescribe, the Secretary 
110 STAT. 596 
PUBLIC LAW 104-106—FEB. 10, 1996 
of Agriculture may enter upon the Arsenal property for purposes 
related to planning, resource inventory, fish and wildlife habitat 
manipulation (which may include prescribed burning), and other 
such activities consistent with the purposes for which the Midewin 
National Tallgrass Prairie is established. 
SEC. 2912. TRANSFER 
OF 
MANAGEMENT 
RESPONSIBILITIES 
AND 
JURISDICTION OVER ARSENAL. 
(a) GENERAL RULE FOR TRANSFER OF JURISDICTION.— 
(1) TRANSFER REQUIRED SUBJECT TO RESPONSE ACTIONS.— 
Subject to subsection (d), not later than 270 days after the 
date of the enactment of this title, the Secretary of the Army 
shall transfer, without reimbursement, to the Secretary of Agri-
culture those portions of the Arsenal that— 
(A) are identified on the map described in subsection 
(e)(1) as appropriate for transfer under this subsection 
to the Secretary of Agriculture; and 
(B) the Secretary of the Army and the Administrator 
concur in finding that all response actions have been taken 
under CERCLA necessary to protect human health and 
the environment with respect to any hazardous substance 
remaining on the property. 
Memorandum. 
(2) EFFECT OF LESS THAN COMPLETE TRANSFER.—If t h e 
concurrence requirement in paragraph (1)(B) results in the 
transfer, within such 270-day period, of less than all of the 
Arsenal property covered by paragraph (1)(A), the Secretary 
of the Army and the Secretary of Agriculture shall enter into 
a memorandum of understanding providing for the performance 
by the Secretary of the Army of the additional response actions 
necessary to allow fulfillment of the concurrence requirement 
with respect to such Arsenal property. The memorandum of 
understanding shall be entered into within 60 days of the 
end of such 270-day period and shall include a schedule for 
the completion of the additional response actions as soon as 
practicable. Subject to subsection (d), the Secretary of the Army 
shall transfer Arsenal property covered by this paragraph to 
the Secretary of Agriculture as soon as possible after the Sec-
retary of the Army and the Administrator concur that all addi-
tional response actions have been taken under CERCLA nec-
essary to protect human health and the environment with 
respect to any hazardous substance remaining on the property. 
The Secretary of the Army may make transfers under this 
paragraph on a parcel-by-parcel basis. 
(3) RULE OF CONSTRUCTION REGARDING CONCURRENCES.— 
For the purpose of reaching the concurrences required by this 
subsection and subsection (b), if a response action requires 
construction and installation of an approved remedial design, 
the response action shall be considered to have been taken 
when the construction and installation of the approved remedial 
design is completed and the remedy is demonstrated to the 
satisfaction of the Administrator to be operating properly and 
successfully. 
(b) SPECIAL TRANSFER REQUIREMENTS FOR CERTAIN PARCELS.— 
Subject to subsection (d), the Secretary of the Army shall transfer, 
without reimbursement, to the Secretary of Agriculture the Arsenal 
property known as LAP Area Sites L2, L3, and L5 and Manufactur-
ing Area Site 1. The transfer shall occur as soon as possible after 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 597 
the Secretary of the Army and the Administrator concur that all 
response actions have been taken under CERCLA necessary to 
protect human health and the environment with respect to any 
hazardous substance remaining on the property. The Secretary 
of the Army may make transfers under this subsection on a parcel-
by-parcel basis. 
(c) DOCUMENTATION OF ENVIRONMENTAL CONDITION OF PAR-
CELS; ASSESSMENT OF REQUIRED ACTIONS UNDER OTHER ENVIRON-
MENTAL LAWS.— 
(1) DOCUMENTATION.—The Secretary of the Army and the 
Administrator shall provide to the Secretary of Agriculture 
all documentation and information that exists on the date the -
documentation and information is provided relating to the 
environmental condition of the Arsenal property proposed for 
transfer under subsection (a) or (b), including documentation 
that supports the finding that all response actions have been 
taken under CERCLA necessary to protect human health and 
the environment with respect to any hazardous substance 
remaining on the property. 
(2) ASSESSMENT.—^The Secretary of the Army shall provide 
to the Secretary of Agriculture an assessment, based on 
information in existence at the time the assessment is provided, 
indicating what further action, if any, is required under any 
environmental law (other than CERCLA) on the Arsenal prop-
erty proposed for transfer under subsection (a) or (b). 
(3) TIME FOR SUBMISSION OF DOCUMENTATION AND ASSESS-
MENT.—The documentation and assessments required to be 
submitted to the Secretary of Agriculture under this subsection 
shall be submitted— 
(A) in the case of the transfers required by subsection 
(a), not later than 210 days after the date of the enactment 
of this title; and 
(B) in the case of the transfers required by subsection 
(b), not later than 60 days before the earliest date on 
which the property could be transferred. 
(4) SUBMISSION OF ADDITIONAL INFORMATION.—The Sec-
retary of the Army and the Administrator shall have a continu-
ing obligation to provide to the Secretary of Agriculture any 
additional information regarding the environmental condition 
of property to be transferred under subsection (a) or (b) as 
such information becomes available. 
(d) EFFECT OF ENVIRONMENTAL ASSESSMENT.— 
(1) AUTHORITY OF SECRETARY OF AGRICULTURE TO DECLINE 
IMMEDIATE TRANSFER.—If a parcel of Arsenal property to be 
transferred under subsection (a) or (b) includes property for 
which the assessment under subsection (c)(2) concludes further 
action is required under any environmental law (other than 
CERCLA), the Secretary of Agriculture may decline immediate 
transfer of the parcel. With respect to such a parcel, the Sec- Memorandum, 
retary of the Army and the Secretary of Agriculture shall 
enter into a memorandum of understanding providing for the 
performance by the Secretary of the Army of the required 
actions identified in the Army assessment. The memorandum 
of understanding shall be entered into within 90 days after 
the date on which the Secretary of Agriculture declines imme-
diate transfer of the parcel and shall include a schedule for 
the completion of the required actions as soon as practicable. 
110 STAT. 598 
PUBLIC LAW 104-106—FEB. 10, 1996 
(2) EvE^^^UAL TRANSFER.—In the case of a parcel of Arsenal 
property that the Secretary of Agriculture declines immediate 
transfer under paragraph (1), the Secretary may accept transfer 
of the parcel at any time after the original finding with respect 
to the parcel that all response actions have been taken under 
CERCLA necessary to protect human health and the environ-
ment with respect to any hazardous substance remaining on 
the property. The Secretary of Agriculture shall accept transfer 
of the parcel as soon as possible after the date on which 
all required further actions identified in the assessment have 
been taken and the terms of any memorandum of understand-
ing have been satisfied. 
(e) IDENTIFICATION OF ARSENAL PROPERTY FOR TRANSFER.— 
(1) MAP OF PROPOSED TRANSFERS.—^The lands subject to 
transfer to the Secretary of Agriculture under subsections (a) 
and (b) and section 2916 are depicted on the map dated Septem-
ber 22, 1995, which is on file and available for public inspection 
at the Office of the Chief of the Forest Service and the Office 
of the Assistant Secretary of the Army for Installations, Logis-
tics and the Environment. 
Federal Register, 
(2) METHOD OF EFFECTING TRANSFER.—The S e c r e t a r y of 
publication. 
the Army shall effect the transfer of jurisdiction of Arsenal 
property under subsections (a) and (b) and section 2916 by 
publication of notices in the Federal Register. The Secretary 
of Agriculture shall give prior concurrence to the publication 
of such notices. Each notice published in the Federal Register 
shall refer to the parcel being transferred by legal description, 
references to maps or surveys, or other forms of description 
mutually acceptable to the Secretary of the Army and the 
Secretary of Agriculture. The Secretary of the Army shall pro-
vide, without reimbursement, to the Secretary of Agriculture 
copies of all surveys and land title information on lands trans-
ferred under this section or section 2916. 
(f) SURVEYS.—^All costs of necessary surveys for the transfer 
of jurisdiction of Arsenal property from the Secretary of the Army 
to the Secretary of Agriculture shall be borne by the Secretary 
of Agriculture. 
SEC. 2913. RESPONSIBILITY AND LIABILITY. 
(a) CONTINUED LIABILITY OF SECRETARY OF THE ARMY.—^The 
transfers of Arsenal property under sections 2912 and 2916, and 
the requirements of such sections, shall not in any way affect 
the responsibilities and liabilities of the Secretary of the Army 
specified in this section. The Secretary of the Army shall retain 
any obligation or other liability at the Arsenal that the Secretary 
of the Army has under CERCLA or other environmental laws. 
Following transfer of a portion of the Arsenal under this subtitle, 
the Secretary of the Army shall be accorded any easement or 
access to the property that may be reasonably required by the 
Secretary to carry out the obligation or satisfy the liability. 
(b) SPECIAL PROTECTIONS FOR SECRETARY OF AGRICULTURE.— 
The Secretary of Agriculture shall not be liable under any environ-
mental law for matters which are related directly or indirectly 
to activities of the Secretary of the Army at the Arsenal or any 
party acting under the authority of the Secretary of the Army 
at the Arsenal, including any of the following: 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 599 
(1) Costs or performance of response actions required under 
CERCLA at or related to the Arsenal. 
(2) Costs, penalties, fines, or performance of actions related 
to noncompliance with any environmental law at or related 
to the Arsenal or related to the presence, release, or threat 
of release of any hazardous substance, pollutant or contami-
nant, hazardous waste, or hazardous material of any kind 
at or related to the Arsenal, including contamination resulting 
from migration of a hazardous substance, pollutant or contami-
nant, hazardous waste, hazardous material, or petroleum prod-
ucts or their derivatives. 
(3) Costs or performance of actions necessary to remedy 
noncompliance or another problem specified in paragraph (2). 
(c) LIABILITY OF OTHER PERSONS.—Nothing in this title shall 
be construed to effect, modify, amend, repeal, alter, limit or other-
wise change, directly or indirectly, the responsibilities or liabilities 
under any environmental law of any person (including the Secretary 
of Agriculture), except as provided in subsection (b) with respect 
to the Secretary of Agriculture. 
(d) PAYMENT OF RESPONSE ACTION COSTS.—^A Federal agency 
that had or has operations at the Arsenal resulting in the release 
or threatened release of a hazardous substance or pollutant or 
contaminant for which that agency would be liable under any 
environmental law, subject to the provisions of this subtitle, shall 
pay the costs of related response actions and shall pay the costs 
of related actions to remediate petroleum products or the derivatives 
of the products, including motor oil and aviation fuel. 
(e) CONSULTATION.— 
(1) RESPONSIBILITY OF SECRETARY OF AGRICULTURE.—The 
Secretary of Agriculture shall consult with the Secretary of 
the Army with respect to the management by the Secretary 
of Agriculture of real property included in the Midewin National 
Tallgrass Prairie subject to any response action or other action 
at the Arsenal being carried out by or under the authority 
of the Secretary of the Army under any environmental law. 
The Secretary of Agriculture shall consult with the Secretary 
of the Army prior to undertaking any activities on the Midewin 
National Tallgrass Prairie that may disturb the property to 
ensure that such activities will not exacerbate contamination 
problems or interfere with performance by the Secretary of 
the Army of response actions at the property. 
(2) RESPONSIBILITY OF SECRETARY OF THE ARMY.—In carry-
ing out response actions at the Arsenal, the Secretary of the 
Army shall consult with the Secretary of Agriculture to ensure 
that such actions are carried out in a manner consistent with 
the purposes for which the Midewin National Tallgrass Prairie 
is established, as specified in section 2914(c), and the other 
provisions of sections 2914 and 2915. 
SEC. 2914. ESTABLISHMENT AND ADMINISTRATION OF MIDEWIN 
N A T I O N A L TALLGRASS PRAIRIE. 
(a) ESTABLISHMENT.—On the effective date of the initial transfer 
of jurisdiction of portions of the Arsenal to the Secretary of Agri-
culture under section 2912(a), the Secretary of Agriculture shall 
establish the Midewin National Tallgrass Prairie. The MNP shall— 
(1) be administered by the Secretary of Agriculture; and 
National Forest 
System. 
Conservation. 
Environmental 
protection. 
110 STAT. 600 
PUBLIC LAW 104-106—FEB. 10, 1996 
(2) consist of the real property so transferred and such 
other portions of the Arsenal subsequently transferred under 
section 2912(b) or 2916 or acquired under section 2914(d). 
(b) ADMINISTRATION.— 
(1) IN GENERAL.—The Secretary of Agriculture shall man-
age the Midewin National Tallgrass Prairie as a part of the 
National Forest System in accordance with this title and the 
laws, rules, and regulations pertaining to the National Forest 
System, except that the Bankhead-Jones Farm Tenant Act 
of 1937 (7 U.S.C. 1010-1012) shall not apply to the MNP. 
(2) INITIAL MANAGEMENT ACTIVITIES.—In order to expedite 
the administration and public use of the Midewin National 
Tallgrass Prairie, the Secretary of Agriculture may conduct 
management activities at the MNP to effectuate the purposes 
-^ 
for which the MNP is established, as set forth in subsection 
(c), in advance of the development of a land and resource 
management plan for the MNP. 
(3) LAND AND RESOURCE MANAGEMENT PLAN.—In developing 
a land and resource management plan for the Midewin National 
Tallgrass Prairie, the Secretary of Agriculture shall consult 
with the Illinois Department of Natural Resources and local 
governments adjacent to the MNP and provide an opportunity 
for public comment. Any parcel transferred to the Secretary 
of Agriculture under this title after the development of a land 
and resource management plan for the MNP may be managed 
in accordance with such plan without need for an amendment 
to the plan. 
(c) PURPOSES OF THE MIDEWIN NATIONAL TALLGRASS PRAIRIE.— 
The Midewin National Tallgrass Prairie is established to be man-
aged for National Forest System purposes, including the following: 
(1) To manage the land and water resources of the MNP 
in a manner that will conserve and enhance the native popu-
lations and habitats of fish, wildlife, and plants. 
(2) To provide opportunities for scientific, environmental, 
and land use education and research. 
(3) To allow the continuation of agricultural uses of lands 
within the MNP consistent with section 2915(b). 
(4) To provide a variety of recreation opportunities that 
are not inconsistent with the preceding purposes. 
(d) OTHER LAND ACQUISITION FOR MNP.— 
(1) AVAILABILITY OF LAND ACQUISITION FUNDS.—Notwith-
standing section 7 of the Land and Water Conservation Fund 
Act of 1965 (16 U.S.C. 460Z-9), the Secretary of Agriculture 
may use monies appropriated from the Land and Water Con-
servation Fund established under section 2 of such Act (16 
U.S.C. 460Z-5) for the acquisition of lands and interests in 
land for inclusion in the Midewin National Tallgrass Prairie. 
(2) ACQUISITION OF LANDS.—The Secretary of Agriculture 
may acquire lands or interests therein for inclusion in the 
Midewin National Tallgrass Prairie by donation, purchase, or 
exchange, except that the acquisition of private lands for inclu-
sion in the MNP shall be on a willing seller basis only. 
(e) COOPERATION WITH STATES, LOCAL GOVERNMENTS AND 
OTHER ENTITIES.—In the management of the Midewin National 
Tallgrass Prairie, the Secretary of Agriculture is authorized and 
encouraged to cooperate with appropriate Federal, State and local 
governmental agencies, private organizations and corporations. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 601 
Such cooperation may include cooperative agreements as well as 
the exercise of the existing authorities of the Secretary under the 
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101 et 
seq.) and the Forest and Rangeland Renewable Resources Research 
Act of 1978 (16 U.S.C. 1641 et seq.). The objects of such cooperation 
may include public education, land and resource protection, and 
cooperative management among government, corporate, and private 
landowners in a manner which furthers the purposes for which 
the Midewin National Tallgrass Prairie is established. 
SEC. 2915. SPECIAL MANAGEMENT REQUIREMENTS FOR MIDEWIN 
NATIONAL TALLGRASS PRAIRIE. 
(a) PROHIBITION AGAINST THE CONSTRUCTION OF NEW THROUGH 
ROADS.—No new construction of any highway, public road, or any 
part of the interstate system, whether Federal, State, or local, 
shall be permitted through or across any portion of the Midewin 
National Tallgrass Prairie. Nothing in this title shall preclude 
construction and maintenance of roads for use within the MNP, 
the granting of authorizations for utility rights-of-way 
under 
applicable Federal law, or such access as is necessary. Nothing 
in this title shall preclude necessary access by the Secretary of 
the Army for purposes of restoration and cleanup as provided in 
this title. 
(b) AGRICULTURAL LEASES AND SPECIAL USE AUTHORIZATIONS.— 
Within the Midewin National Tallgrass Prairie, use of the lands 
for agricultural purposes shall be permitted subject to the following 
terms and conditions: 
(1) If at the time of transfer of jurisdiction under section 
2912 or 2916 there exists any lease issued by the Secretary 
of the Army or the Secretary of Defense for agricultural pur-
poses upon the parcel transferred, the Secretary of Agriculture 
shall issue a special use authorization to supersede the lease. 
The terms of the special use authorization shall be identical 
in substance to the lease that the special use authorization 
is superseding, including the expiration date and any payments 
owed the United States. On issuance of the special use 
authorization, the lease shall become void. 
(2) In addition to the authority provided in paragraph 
(1), the Secretary of Agriculture may issue special use 
authorizations to persons for use of the Midewin National 
Tallgrass 
Prairie 
for 
agricultural 
purposes. 
Special 
use 
authorizations issued pursuant to this paragraph shall include 
terms and conditions as the Secretary of Agriculture may deem 
appropriate. 
(3) No agricultural special use authorization shall be issued 
for agricultural purposes which has a term extending beyond 
the date 20 years from the date of the enactment of this 
title, except that nothing in this title shall preclude the Sec-
retary of Agriculture from issuing agricultural special use 
authorizations or grazing permits which are effective after 
twenty years from the date of enactment of this title for pur-
poses primarily related to erosion control, provision for food 
and habitat for fish and wildlife, or other resource management 
activities consistent with the purposes of the Midewin National 
Tallgrass Prairie. 
(c) TREATMENT OF RENTAL FEES.—Monies received under a 
special use authorization issued under subsection (b) shall be subject 
110 STAT. 602 
PUBLIC LAW 104-106—FEB. 10, 1996 
to distribution to the State of Illinois and affected counties pursuant 
to the Act of May 23, 1908, and section 13 of the Act of March 
Nomenclature. 
1, 1911 (16 U.S.C. 500). All monies not distributed pursuant to 
such Acts shall be covered into the Treasury and shall constitute 
a special fund (to be known as the "MNP Rental Fee Account"). 
The Secretary of Agriculture may use amounts in the fund, until 
expended and without fiscal year limitation, to cover the cost to 
the United States of prairie improvement work at the Midewin 
National Tallgrass Prairie. Any amounts in the fund that the Sec-
retary of Agriculture determines to be in excess of the cost of 
doing such work shall be transferred, upon such determination, 
to miscellaneous receipts. Forest Service Fund, as a National Forest 
receipt of the fiscal year in which the transfer is made. 
(d) USER FEES.—The Secretary of Agriculture is authorized 
to charge reasonable fees for the admission, occupancy, and use 
of the Midewin National Tallgrass Prairie and may prescribe a 
fee schedule providing for reduced or a waiver of fees for persons 
or groups engaged in authorized activities including those providing 
volunteer services, research, or education. The Secretary shall per-
mit admission, occupancy, and use at no additional charge for 
persons possessing a valid Golden Eagle Passport or Golden Age 
Passport. 
(e) SALVAGE OF IMPROVEMENTS.—The Secretary of Agriculture 
may sell for salvage value any facilities and improvements which 
have been transferred to the Secretary pursuant to this title. 
Nomenclature. 
(f) TREATMENT OF USER FEES AND SALVAGE RECEIPTS.—Monies 
collected pursuant to subsections (d) and (e) shall be covered into 
the Treasury and constitute a special fund (to be known as the 
"Midewin National Tallgrass Prairie Restoration Fund"). The Sec-
retary of Agriculture may use amounts in the fund, in such amounts 
as are provided in advance in appropriation Acts, for restoration 
and administration of the Midewin National Tallgrass Prairie, 
including construction of a visitor and education center, restoration 
of ecosystems, construction of recreational facilities (such as trails), 
construction of administrative offices, and operation and mainte-
nance of the MNP. The Secretary of Agriculture shall include the 
MNP among the areas under the jurisdiction of the Secretary 
selected for inclusion in any cost recovery or any pilot program 
of the Secretary for the collection, use, and distribution of user 
fees. 
SEC. 2916. SPECIAL TRANSFER RULES FOR CERTAIN ARSENAL PAR-
CELS INTENDED FOR MNP. 
(a) DESCRIPTION OF PARCELS.—The following areas of the 
Arsenal may be transferred under this section: 
(1) Study Area 2, explosive burning ground. 
(2) Study Area 3, flashing ground. 
(3) Study Area 4, lead azide area. 
(4) Study Area 10, toluene tank farms. 
(5) Study Area 11, landfill. 
(6) Study Area 12, sellite manufacturing area. 
(7) Study Area 14, former pond area. 
(8) Study Area 15, sewage treatment plan. 
(9) Study Area LI, load assemble packing area, group 61. 
(10) Study Area L4, landfill area. 
(11) Study Area L7, group 1. 
(12) Study Area L8, group 2. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 603 
(13) Study Area L9, group 3. 
(14) Study Area LIO, group 3A. 
(15) Study Area L14, group 4. 
(16) Study Area L15, group 5. 
(17) Study Area L18, group 8. 
(18) Study Area L19, group 9. 
(19) Study Area L33, PVC area. 
(20) Any other lands proposed for transfer as depicted 
on the map described in section 2912(e)(1) and not otherwise 
specifically identified for transfer under this subtitle. 
(b) INFORMATION REGARDING ENVIRONMENTAL CONDITION OF 
PARCELS; 
ASSESSMENT OF 
REQUIRED ACTIONS UNDER 
OTHER 
ENVIRONMENTAL LAWS.— 
(1) INFORMATION.—Not later than 180 days after the date 
on which the Secretary of the Army and the Administrator 
concur in finding that, with respect to a parcel of Arsenal 
property described in subsection (a), all response actions have 
been taken under CERCLA necessary to protect human health 
and the environment with respect to any hazardous substance 
remaining on the parcel, the Secretary of the Army and the 
Administrator shall provide to the Secretary of Agriculture 
all information that exists on such date regarding the environ-
mental condition of the parcel and the implementation of any 
response action, including information regarding the effective-
ness of the response action. 
(2) ASSESSMENT.—^At the same time as information is pro-
vided under paragraph (1) with regard to a parcel of Arsenal 
property described in subsection (a), the Secretary of the Army 
shall provide to the Secretary of Agriculture an assessment, 
based on information in existence at the time the assessment 
is provided, indicating what further action, if any, is required 
under any environmental law (other than CERCLA) with 
respect to the parcel. 
(3) SUBMISSION OF ADDITIONAL INFORMATION.—The Sec-
retary of the Army and the Administrator shall have a continu-
ing obligation to provide to the Secretary of Agriculture any 
additional information regarding the environmental condition 
of a parcel of the i\rsenal property described in subsection 
(a) as such information becomes available. 
(c) OFFER OF TRANSFER.—Not later than 180 days after the 
date on which information is provided under subsection (b)(1) with 
regard to a parcel of the Arsenal property described in subsection 
(a), the Secretary of the Army shall offer the Secretary of Agri-
culture the option of accepting a transfer of the parcel, without 
reimbursement, to be added to the Midewin National Tallgrass 
Prairie. The transfer shall be subject to the terms and conditions 
of this subtitle, including the liability provisions contained in section 
2913. The Secretary of Agriculture has the option to accept or 
decline the offered transfer. The transfer of property under this 
section may be made on a parcel-by-parcel basis. 
(d) EFFECT OF ENVIRONMENTAL ASSESSMENT.— 
(1) AUTHORITY OF SECRETARY OF AGRICULTURE TO DECLINE 
TRANSFER.—If a parcel of Arsenal property described in sub-
section (a) includes property for which the assessment under 
subsection (b)(2) concludes further action is required under 
any other environmental law, the Secretary of Agriculture may 
decline any transfer of the parcel. Alternatively, the Secretary Memorandum. 
110 STAT. 604 
PUBLIC LAW 104-106—FEB. 10, 1996 
of Agriculture may decline immediate transfer of the parcel 
and enter into a memorandum of understanding with the Sec-
retary of the Army providing for the performance by the Sec-
retary of the Army of the required actions identified in the 
Army assessment with respect to the parcel. The memorandum 
of understanding shall be entered into within 90 days, or such 
later date as the Secretaries may establish, after the date 
on which the Secretary of Agriculture declines immediate trans-
fer of the parcel and shall include a schedule for the completion 
of the required actions as soon as practicable. 
(2) EVENTUAL TRANSFER.—The Secretary of Agriculture 
may accept or decline at any time for any reason the transfer 
of a parcel covered by this section. However, if the Secretary 
of Agriculture and the Secretary of the Army enter into a 
memorandum of understanding under paragraph (1) providing 
for transfer of the parcel, the Secretary of Agriculture shall 
accept transfer of the parcel as soon as possible after the 
date on which all required further actions identified in the 
assessment have been taken and the requirements of the memo-
randum of understanding have been satisfied. 
(e) RULE OF CONSTRUCTION REGARDING CONCURRENCES.—For 
the purpose of the reaching the concurrence required by subsection 
(b)(1), if a response action requires construction and installation 
of an approved remedial design, the response action shall be consid-
ered to have been taken when the construction and installation 
of the approved remedial design is completed and the remedy is 
demonstrated to the satisfaction of the Administrator to be operat-
ing properly and successfully. 
(f) INCLUSIONS AND EXCEPTIONS.— 
(1) INCLUSIONS.—The parcels of Arsenal property described 
in subsection (a) shall include all associated inventoried build-
ings and structures as identified in the Joliet Army Ammunition 
Plant Plantwide Building and Structures Report and the 
contaminate study sites for both the manufacturing and load 
assembly and packing sites of the Arsenal as shown in the 
Dames and Moore Final Report, Phase 2 Remedial Investigation 
Manufacturing (MFG) Area Joliet Army Ammunition Plant, 
Joliet, Illinois (May 30, 1993, Contract No. DAAA15-90-D-
0015 task order No. 6 prepared for the United States Army 
Environmental Center). 
(2) EXCEPTION.—The parcels described in subsection (a) 
shall not include the property at the Arsenal designated for 
transfer or conveyance under subtitle B. 
Subtitle B—Other Land Conveyances 
Involving Joliet Army Ammunition Plant 
SEC. 2921. 
CONVEYANCE 
OF 
CERTAIN 
REAL 
PROPERTY 
AT 
ARSENAL 
FOR 
A 
NATIONAL 
CEMETERY. 
(a) 
CONVEYANCE AUTHORIZED.—Subject to section 2931, 
the 
Secretary of the Army may transfer, without reimbursement, to 
the Secretary of Veterans Affairs the parcel of real property at 
the Arsenal described in subsection (b) for use as a national ceme-
tery operated as part of the National Cemetery System of the 
Department of Veterans Affairs under chapter 24 of title 38, United 
States Code. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 605 
(b) DESCRIPTION OF PROPERTY.—The real property authorized 
to be transferred under subsection (a) is a parcel of real property 
at the Arsenal consisting of approximately 982 acres, the approxi-
mate legal description of which includes part of sections 30 and 
31, Jackson Township, Township 34 North, Range 10 East, and 
part of sections 25 and 36, Channahon Township, Township 34 
North, Range 10 East, Will County, Illinois, as depicted in the 
Arsenal land use concept. 
(c) SECURITY MEASURES.—The Secretary of Veterans Affairs 
shall provide and maintain physical and other security measures 
on the real property transferred under subsection (a). Such security 
measures (which may include fences and natural barriers) shall 
include measures to prevent members of the public from gaining 
unauthorized access to the portion of the Arsenal that is under 
the administrative jurisdiction of the Secretary of Veterans Affairs 
and that may endanger health or safety. 
(d) SURVEYS.—^All costs of necessary surveys for the transfer 
of jurisdiction of Arsenal properties from the Secretary of the Army 
to the Secretary of Veterans Affairs shall be borne solely by the 
Secretary of Veterans Affairs. 
SEC. 2922. COlSfVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL 
FOR A COUNIT LANDFILL. 
(a) CONVEYANCE AUTHORIZED.—Subject to section 2931, the 
Secretary of the Army may convey, without compensation, to Will 
County, Illinois, all right, title, and interest of the United States 
in and to the parcel of real property at the Arsenal described 
in subsection (b), which shall be operated as a landfill by the 
County. 
(b) DESCRIPTION OF PROPERTY.—The real property authorized 
to be conveyed under subsection (a) is a parcel of real property 
at the Arsenal consisting of approximately 455 acres, the approxi-
mate legal description of which includes part of sections 8, 9, 
16, and 17, Florence Township, Township 33 North, Range 10 
East, Will County, Illinois, as depicted in the Arsenal land use 
concept. 
(c) CONDITION ON CONVEYANCE.—The conveyance shall be sub-
ject to the condition that the Department of the Army, the Depart-
ment of Veterans Affairs, and the Department of Agriculture (or 
their agents or assigns) may use the landfill established on the 
real property conveyed under subsection (a) for the disposal of 
construction debris, refuse, and other materials related to any res-
toration and cleanup of Arsenal property. Such use shall be subject 
to applicable environmental laws and at no cost to the Federal 
Government. 
(d) REVERSIONARY INTEREST.—If, at the end of the five-year 
period beginning on the date of the conveyance under subsection 
(a), the Secretary of Agriculture determines that the conveyed prop-
erty is not opened for operation as a landfill, then, at the option 
of the Secretary of Agriculture, all right, title, and interest in 
and to the property, including improvements thereon, shall revert 
to the United States. Upon any such reversion, the property shall 
be included in the Midewin National Tallgrass Prairie. In the 
event the United States exercises its option to cause the property 
to revert, the United States shall have the right of immediate 
entry onto the property. 
110 STAT. 606 
PUBLIC LAW 104-106—FEB. 10, 1996 
(e) INFORMATION REGARDING ENVIRONMENTAL CONDITIONS.— 
At the request of the Secretary of Agriculture, Will County, the 
Secretary of the Army, and the Administrator shall provide to 
the Secretary of Agriculture all information in their possession 
at the time of the request regarding the environmental condition 
of the real property to be conveyed under this section. The liability 
and responsibility of any person under any environmental law 
shall remain unchanged with respect to the landfill, except as 
provided in this title, including section 2913. 
(f) SURVEYS.—^All costs of necessary surveys for the conveyance 
of real property under this section shall be borne by Will County, 
Illinois. 
(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary of the 
Army may require such additional terms and conditions in connec-
tion with the conveyance under this section as the Secretary of 
the Army considers appropriate to protect the interests of the 
United States. 
SEC. 2923. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL 
FOR INDUSTRLVL PARKS. 
(a) CONVEYANCE AUTHORIZED.—Subject to section 2931, the 
Secretary of the Army may convey to the State of Illinois, all 
right, title, and interest of the United States in and to the parcels 
of real property at the Arsenal described in subsection (b), which 
shall be used as industrial parks to replace all or a part of the 
economic activity lost at the Arsenal. 
(b) DESCRIPTION OF PROPERTY.—The real property at the 
Arsenal authorized to be transferred under subsection (a) consists 
of the following parcels: 
(1) A parcel of approximately 1,900 acres, the approximate 
legal description of which includes part of section 30, Jackson 
Township, Township 34 North, Range 10 East, and sections 
or parts of sections 24, 25, 26, 35, and 36, Township 34 North, 
Range 9 East, in Channahon Township, an area of 9.77 acres 
around the Des Plaines River Pump Station located in the 
southeast quarter of section 15, Township 34 North, Range 
9 East of the Third Principal Meridian, in Channahon Town-
ship, and an area of 511 feet by 596 feet around the Kankakee 
River Pump Station in the Northwest Quarter of section 5, 
Township 33 North, Range 9 East, east of the Third Principal 
Meridian in Wilmington Township, containing 6.99 acres, 
located along the easterly side of the Kankakee Cut-Off in 
Will County, Illinois, as depicted in the Arsenal land use con-
cept, and the connecting piping to the northern industrial site, 
as described by the United States Army Report of Availability, 
dated 13 December 1993. 
(2) A parcel of approximately 1,100 acres, the approximate 
legal description of which includes part of sections 16, 17, 
and 18 in Florence Township, Township 33 North, Range 10 
East, Will County, Illinois, as depicted in the Arsenal land 
use concept. 
(c) CONSIDERATION.— 
(1) DELAY IN PAYMENT OF CONSIDERATION.—^After the end 
of the 20-year period beginning on the date on which the 
conveyance under subsection (a) is completed, the State of 
Illinois shall pay to the United States an amount equal to 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 607 
fair market value of the conveyed property as of the time 
of the conveyance. 
(2) EFFECT OF RICCONVEYANCE BY STATE.—If the State of 
Illinois reconveys all or any part of the conveyed property 
during such 20-year period, the State shall pay to the United 
States an amount equal to the fair market value of the 
reconveyed property as of the time of the reconveyance, exclud-
ing the value of any improvements made to the property by 
the State. 
(3) DETERMINATION OF FAIR MARKET VALUE.—^The Secretary 
of the Army shall determine fair market value in accordance 
with Federal appraisal standards and procedures. 
(4) TREATMENT OF LEASES.—The Secretary of the Army 
may treat a lease of the property within such 20-year period 
as a reconveyance if the Secretary determines that the lease 
is being used to avoid application of paragraph (2). 
(5) DEPOSIT OF PROCEEDS.—The Secretary of the Army 
shall deposit any proceeds received under this subsection in 
the special account established pursuant to section 204(h)(2) 
of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 485(h)(2)). 
(d) CONDITIONS OF CONVEYANCE.— 
(1) REDEVELOPMENT AUTHORITY.—The conveyance under 
subsection (a) shall be subject to the condition that the Governor 
of the State of Illinois, in consultation with the Mayor of the 
Village of Elwood, Illinois, and the Mayor of the City of 
Wilmington, Illinois, establish a redevelopment authority to 
be responsible for overseeing the development of the industrial 
parks on the conveyed property. 
(2) TIME FOR ESTABLISHMENT.—^To satisfy the condition 
specified in paragraph (1), the redevelopment authority shall 
be established within one year after the date of the enactment 
of this title. 
(e) SURVEYS.—^All costs of necessary surveys for the conveyance 
of real property under this section shall be borne by the State 
of Illinois. 
(f) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary of the 
Army may require such Eidditional terms and conditions in connec-
tion with the conveyance under this section as the Secretary consid-
ers appropriate to protect the interests of the United States. 
Subtitle C—Miscellaneous Provisions 
SEC. 2931. DEGREE OF ENTVIRONMENTAL CLEANUP. 
(a) IN GENERAL.—Nothing in this title shall be construed to 
restrict or lessen the degree of cleanup at the Arsenal required 
to be carried out under provisions of any environmental law. 
(b) RESPONSE ACTION.—The establishment of the Midewin 
National Tallgrass Prairie under subtitle A and the additional 
real property transfers or conveyances authorized under subtitle 
B shall not restrict or lessen in any way any response action 
or degree of cleanup under CERCLA or other environmental law, 
or any action required under any environmental law to remediate 
petroleum products or their derivatives (including motor oil and 
aviation fuel), required to be carried out under the authority of 
the Secretary of the Army at the Arsenal and surrounding areas. 
110 STAT. 608 
PUBLIC LAW 104-10&—FEB. 10, 1996 
(c) ENVIRONMENTAL QUALITY OF PROPERTY.—^Any contract for 
sale, deed, or other transfer of real property under subtitle B 
shall be carried out in compliance with all applicable provisions 
of section 120(h) of CERCLA and other environmental laws. 
SEC. 2932. RETENTION OF PROPERTY USED FOR ENVIRONMENTAL 
CLEANUP. 
(a) RETENTION OF CERTAIN PROPERTY.—Unless and until the 
Arsenal property described in this subsection is actually transferred 
or conveyed under this title or other applicable law, the Secretary 
of the Army may retain jurisdiction, authority, and control over 
real property at the Arsenal to be used for— 
(1) water treatment; 
(2) the treatment, storage, or disposal of any hazardous 
substance, pollutant or contaminant, hazardous material, or 
petroleum products or their derivatives; 
(3) other purposes related to any response action at the 
Arsenal; and 
(4) other actions required at the Arsenal under any environ-
mental law to remediate contamination or conditions of non-
compliance with any environmental law. 
(b) CONDITIONS.—The Secretary of the Army shall consult with 
the Secretary of Agriculture regarding the identification 
and 
management of the real property retained under this section and 
ensure that activities carried out on that property are consistent, 
to the extent practicable, with the purposes for which the Midewin 
National Tallgrass Prairie is established, as specified in section 
2914(c), and with the other provisions of sections 2914 and 2915. 
(c) PRIORITY OF RESPONSE ACTIONS.—In the case of any conflict 
between management of the property by the Secretary of Agri-
culture and any response action required under CERCLA, or any 
other action required under any other environmental law, including 
actions to remediate petroleum products or their derivatives, the 
response action or other action shall take priority. 
DIVISION C—DEPARTMENT OF ENERGY 
NATIONAL 
SECURITY 
AUTHORIZA-
TIONS AND OTHER AUTHORIZATIONS 
TITLE XXXI—DEPARTMENT OF ENERGY 
NATIONAL SECURITY PROGRAMS 
Subtitle A—National Security Programs 
Authorizations 
SEC. 3101. WEAPONS ACTIVITIES. 
(a) STOCKPILE STEWARDSHIP.—Subject to subsection (d), funds 
are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1996 for stockpile stewardship in carrying 
out weapons activities necessary for national security programs 
in the amount of $1,567,175,000, to be allocated as follows: 
(1) For core stockpile stewardship, $1,159,708,000, to be 
allocated as follows: 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 609 
(A) For operation and maintenance, $1,078,403,000. 
(B) For plant projects (including maintenance, restora-
tion, planning, construction, acquisition, modification of 
facilities, and the continuation of projects authorized in 
prior 
years, 
and 
land 
acquisition 
related 
thereto), 
$81,305,000, to be allocated as follows: 
Project 96-D-102, stockpile stewardship facilities 
revitalization. Phase VT, various locations, $2,520,000. 
Project 96-D-103, ATLAS, Los Alamos National 
Laboratory, Los Alamos, New Mexico, $8,400,000. 
Project 96-D-104, processing and environmental 
technology laboratory (PETL), Sandia National Labora-
tories, Albuquerque, New Mexico, $1,800,000. 
Project 96-D-105, contained firing facility addi-
tion, Lawrence Livermore National Laboratory, Liver-
more, California, $6,600,000. 
Project 
95-D-102, 
Chemical 
and 
Metallurgy 
Research 
Building upgrades 
project, 
Los Alamos 
National 
Laboratory, 
Los Alamos, 
New 
Mexico, 
$9,940,000. 
Project 
94-D-102, nuclear weapons 
research, 
development, and testing facilities revitalization. Phase 
V, various locations, $12,200,000. 
Project 93-D-102, Nevada support facility, North 
Las Vegas, Nevada, $15,650,000. 
Project 
90-D-102, nuclear weapons 
research, 
development, and testing facilities revitalization, Phase 
III, various locations, $6,200,000. 
Project 
88-D-106, nuclear weapons 
research, 
development, and testing facilities revitalization, Phase 
II, various locations, $17,995,000. 
(2) For inertial fusion, $240,667,000, to be allocated as 
follows: 
(A) For operation and maintenance, $203,267,000. 
(B) For the following plant project (including mainte-
nance, restoration, planning, construction, acquisition, and 
modification of facilities, and land acquisition related there-
to), $37,400,000: 
Project 96-D-lll, national ignition facility, loca-
tion to be determined, $37,400,000. 
(3) For technology transfer and education, $160,000,000. 
(4) For Marshall Islands, $6,800,000. 
(b) STOCKPILE MANAGEMENT.—Subject to subsection (d), funds 
are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1996 for stockpile management in carrying 
out weapons activities necessary for national security programs 
in the amount of $2,025,083,000, to be allocated as follows: 
(1) For operation and maintenance, $1,911,458,000. 
(2) For plant projects (including maintenance, restoration, 
planning, construction, acquisition, modification of facilities, 
and the continuation of projects authorized in prior years, and 
land acquisition related thereto), $113,625,000, to be allocated 
as follows: 
Project 96-D-122, sewage treatment quality upgrade 
(STQU), Pantex Plant, Amarillo, Texas, $600,000. 
110 STAT. 610 
PUBLIC LAW 104-106—FEB. 10, 1996 
Project 96-D-123, retrofit heating, ventilation, and air 
conditioning and chillers for ozone protection, Y-12 Plant, 
Oak Ridge, Tennessee, $3,100,000. 
Project 96-D-125, Washington measurements oper-
ations facility, Andrews Air Force Base, Camp Springs, 
Maryland, $900,000. 
Project 96-D-126, tritium loading line modifications, 
Savannah River Site, South Carolina, $12,200,000. 
Project 95-D-122, sanitary sewer upgrade, Y-12 Plant, 
Oak Ridge, Tennessee, $6,300,000. 
Project 94-D-124, hydrogen fluoride supply system, 
Y-12 Plant, Oak Ridge, Tennessee, $8,700,000. 
Project 94-D-125, upgrade life safety, Kansas City 
Plant, Kansas City, Missouri, $5,500,000. 
Project 
94-D-127, emergency notification 
system, 
Pantex Plant, Amarillo, Texas, $2,000,000. 
Project 94-D-128, environmental safety and health 
analytical laboratory, Pantex Plant, Amarillo, Texas, 
$4,000,000. 
Project 93-D-122, life safety upgrades, Y-12 Plant, 
Oak Ridge, Tennessee, $7,200,000. 
Project 
93-D-123, complex-21, various 
locations, 
$41,065,000. 
Project 88-D-122, facilities capability assurance pro-
gram, various locations, $8,660,000. 
Project 
88-D-123, security 
enhancement, 
Pantex 
Plant, Amarillo, Texas, $13,400,000. 
(c) PROGRAM DIRECTION.—Subject to subsection (d), funds are 
hereby authorized to be appropriated to the Department of Energy 
for fiscal year 1996 for program direction in carrying out weapons 
activities necessary for national security programs in the amount 
of $115,000,000. 
(d) ADJUSTMENTS.—^The total amount authorized to be appro-
priated pursuant to this section is the sum of the amounts author-
ized to be appropriated in subsections (a) through (c) reduced by 
the sum of— 
(1) $37,200,000, for savings resulting from procurement 
reform; and 
(2) $209,744,000, for use of prior year balances. 
SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGE-
MENT. 
(a) ENVIRONMENTAL RESTORATION.—Subject to subsection (h), 
funds are hereby authorized to be appropriated to the Department 
of Energy for fiscal year 1996 for environmental restoration in 
carrying out environmental restoration and waste management 
activities necessary for national security programs in the amount 
of $1,635,973,000. 
(b) WASTE MANAGEMENT.—Subject to subsection (h), funds are 
hereby authorized to be appropriated to the Department of Energy 
for fiscal year 1996 for waste management in carrying out environ-
mental restoration and waste management activities necessary for 
national security programs in the amount of $2,470,598,000, to 
be allocated as follows: 
(1) For operation and maintenance, $2,295,994,000. 
(2) For plant projects (including maintenance, restoration, 
planning, construction, acquisition, modification of facilities. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 611 
and the continuation of projects authorized in prior years, and 
land acquisition related thereto), $174,604,000, to be allocated 
as follows: 
Project 96-I)-406, spent nuclear fuels canister storage 
and 
stabilization 
facility, 
Richland, 
Washington, 
$42,000,000. 
Project 96-D-407, mixed waste/low-level waste treat-
ment projects, Rocky Flats Plant, Golden, Colorado, 
$2,900,000. 
Project 96-D-408, waste management upgrades, var-
ious locations, $5,615,000. 
Project 95-I)-402, install permanent electrical service. 
Waste Isolation Pilot Plant, Carlsbad, New Mexico, 
$4,314,000. 
Project 95-D-405, industrial landfill V and construc-
tion/demolition landfill VII, Phase III, Y-12 Plant, Oak 
Ridge, Tennessee, $4,600,000. 
Project 95-D-406, road 5-01 reconstruction, area 5, 
Nevada Test Site, Nevada, $1,023,000. 
Project 
95-D-407, 
219-S 
secondary 
containment 
upgrade, Richland Washington, $1,000,000. 
Project 94-D-400, high explosive wastewater treat-
ment system, Los Alamos National Laboratory, Los Alamos, 
New Mexico, $4,445,000. 
Project 94-D-402, liquid waste treatment system, 
Nevada Test Site, Nevada, $282,000. 
Project 94-D-404, Melton Valley storage tank capacity 
increase. Oak Ridge National Laboratory, Oak Ridge, Ten-
nessee, $11,000,000. 
Project 94-D-407, initial tank retrieval systems, Rich-
land, Washington, $12,000,000. 
Project 94-D-411, solid waste operation complex, Rich-
land, Washington, $6,606,000. 
Project 93-D-178, building 374 liquid waste treatment 
facility. Rocky Flats Plant, Golden, Colorado, $3,900,000. 
Project 93-D-181, radioactive liquid waste line replace-
ment, Richland, Washington, $5,000,000. 
Project 93-D-182, replacement of cross-site transfer 
system, Richland, Washington, $19,795,000. 
Project 93-D-187, high-level waste removal from filled 
waste tanks. Savannah 
River Site, South 
Carolina, 
$19,700,000. 
Project 92-I)-171, mixed waste receiving and storage 
facility, Los Alamos National Laboratory, Los Alamos, New 
Mexico, $1,105,000. 
Project 92-I)-188, waste management environmental, 
safety and health (ES&H) and compliance activities, var-
ious locations, $1,100,000. 
Project 90-D-172, aging waste transfer lines, Richland, 
Washington, $2,000,000. 
Project 90-D-177, RWMC transuranic (TRU) waste 
characterization 
and 
storage facility, 
Idaho 
National 
Engineering Laboratory, Idaho, $1,428,000. 
Project 90-D-178, TSA retrieval enclosure, Idaho 
National Engineering Laboratory, Idaho, $2,606,000. 
Project 89-D-173, tank farm ventilation upgrade, Rich-
land, Washington, $800,000. 
110 STAT. 612 
PUBLIC LAW 104-106—FEB. 10, 1996 
Project 89-D-174, replacement high-level waste evapo-
rator, Savannah 
River Site, Aiken, South 
Carolina, 
$11,500,000. 
Project 86-D-103, decontamination and waste treat-
ment facility, Lawrence Livermore National Laboratory, 
Livermore, California, $8,885,000. 
Project 83-D-148, nonradioactive hazardous waste 
management. Savannah River Site, Aiken, South Carolina, 
$1,000,000. 
(c) TECHNOLOGY DEVELOPMENT.—Subject to subsection (h), 
funds are hereby authorized to be appropriated to the Department 
of Energy for fiscal year 1996 for technology development in carry-
ing out environmental restoration and waste management activities 
necessary for national security programs in the amount of 
$440,510,000. 
(d) TRANSPORTATION MANAGEMENT.—Subject to subsection (h), 
funds are hereby authorized to be appropriated to the Department 
of Energy for fiscal year 1996 for transportation management in 
carrying out environmental restoration and waste management 
activities necessary for national security programs in the amount 
of $13,158,000. 
(e) NUCLEAR MATERIALS AND FACILITIES STABILIZATION.—Sub-
ject to subsection (h), funds are hereby authorized to be appro-
priated to the Department of Energy for fiscal year 1996 for nuclear 
materials and facilities stabilization in carrying out environmental 
restoration and waste management activities necessary for national 
security programs in the amount of $1,561,854,000 to be allocated 
as follows: 
(1) For operation and maintenance, $1,447,108,000. 
(2) For plant projects (including maintenance, restoration, 
planning, construction, acquisition, modification of facilities, 
and the continuation of projects authorized in prior years, and 
land acquisition related thereto), $114,746,000, to be allocated 
as follows: 
Project 96-D-457, thermal treatment system, Richland 
Washington, $1,000,000. 
Project 96-D-458, site drainage control. Mound Plant, 
Miamisburg, Ohio, $885,000. 
Project 
96-D—461, electrical distribution 
upgrade, 
Idaho National Engineering Laboratory, Idaho, $1,539,000. 
Project 
96-D-464, electrical 
and 
utility 
systems 
upgrade, Idaho Chemical Processing Plant, Idaho National 
Engineering Laboratory, Idaho, $4,952,000. 
Project 96-D-468, residue elimination project, Rocky 
Flats Plant, Golden, Colorado, $33,100,000. 
Project 96-D-471, chlorofluorocarbon heating, ventila-
tion, and air conditioning and chiller retrofit. Savannah 
River Site, Aiken, South Carolina, $1,500,000. 
Project 95-D-155, upgrade site road infrastructure. 
Savannah River Site, South Carolina, $2,900,000. 
Project 95-D-156, radio trunking system, Savannah 
River Site, South Carolina, $6,000,000. 
Project 95-D-454, 324 facility compliance/renovation, 
Richland, Washington, $3,500,000. 
Project 95-D-456, security facilities upgrade, Idaho 
Chemical Processing Plant, Idaho National Engineering 
Laboratory, Idaho, $8,382,000. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 613 
Project 94-D-122, underground storage tanks, Rocky 
Flats Plant, Golden, Colorado, $5,000,000. 
Project 94-D-401, emergency response facility, Idaho 
National Engineering Laboratory, Idaho, $5,074,000. 
Project 94-D-412, 300 area process sewer piping 
upgrade, Richland, Washington, $1,000,000. 
Project 94-D-415, medical facilities, Idaho National 
Engineering Laboratory, Idaho, $3,601,000. 
Project 94-D-451, infrastructure replacement. Rocky 
Flats Plant, Golden, Colorado, $2,940,000. 
Project 93-D-147, domestic water system upgrade, 
Phase I and II, Savannah River Site, Aiken, South Caro-
lina, $7,130,000. 
Project 92-D-123, plant fire/security alarm systems 
replacement, 
Rocky 
Flats 
Plant, 
Golden, 
Colorado, 
$9,560,000. 
Project 92~D-125, master safeguards and security 
agreement/materials 
surveillance 
task 
force 
security 
upgrades. Rocky Flats Plant, Golden, Colorado, $7,000,000. 
Project 92-D-181, fire and life safety improvements, 
Idaho National Engineering Laboratory, Idaho, $6,883,000. 
Project 91-D-127, criticality alarm and plant annun-
ciation utility replacement, Rocky Flats Plant, Golden, 
Colorado, $2,800,000. 
(f) COMPLIANCE AND PROGRAM COORDINATION.—Subject to sub-
section (h), funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1996 for compliance and 
program coordination in carrying out environmental restoration 
and waste management activities necessary for national security 
programs in the amount of $46,251,000, to be allocated as follows: 
(1) For operation and maintenance, $31,251,000. 
(2) For the following plant project (including maintenance, 
restoration, planning, construction, acquisition, modification of 
facilities, and the continuation of a project authorized in prior 
years, and land acquisition related thereto): 
Project 95-E-600, hazardous materials training center, 
Richland, Washington, $15,000,000. 
(g) ANALYSIS, EDUCATION, AND RISK MANAGEMENT.—Subject 
to subsection (h), funds are hereby authorized to be appropriated 
to the Department of Energy for fiscal year 1996 for analysis, 
education, and risk management in carrying out environmental 
restoration and waste management activities necessary for national 
security programs in the amount of $78,522,000. 
(h) ADJUSTMENTS.—The total amount authorized to be appro-
priated pursuant to this section is the sum of the amounts specified 
in subsections (a) through (g) reduced by the sum of— 
(1) $652,334,000, for use of prior year balances; and 
(2) $37,000,000, for Savannah River Pension Refund. 
SEC. 3103. OTHER DEFENSE ACTIVmES. 
(a) OTHER DEFENSE ACTIVITIES.—Subject to subsection (b), 
funds are hereby authorized to be appropriated to the Department 
of Energy for fiscal year 1996 for other defense activities in carrying 
out programs necessary^ for national security in the amount of 
$1,351,975,600, to be allocated as follows: 
(1) For verification and control technology, $428,205,600, 
to be allocated as follows: 
110 STAT. 614 
PUBLIC LAW 104-106—FEB. 10, 1996 
(A) For nonproliferation and verification research and 
development, $224,905,000. 
(B) For arms control, $160,964,600. 
(C) For intelligence, $42,336,000. 
(2) For nuclear safeguards and security, $83,395,000. 
(3) For security investigations, $20,000,000. 
(4) For security evaluations, $14,707,000. 
(5) For the Office of Nuclear Safety, $17,679,000. 
(6) For worker and community transition 
assistance, 
$82,500,000. 
(7) For fissile materials disposition, $70,000,000. 
(8) For emergency management, $23,321,000. 
(9) For naval reactors development, $682,168,000, to be 
allocated as follows: 
(A) For operation and infrastructure, $652,568,000. 
(B) For plant projects (including maintenance, restora-
tion, planning, construction, acquisition, modification of 
facilities, and the continuation of projects authorized in 
prior 
years, 
and 
land 
acquisition 
related 
thereto), 
$29,600,000, to be allocated as follows: 
Project GPN-101, general plant projects, various 
locations, $6,600,000. 
Project 95-D-200, laboratory systems and hot cell 
upgrades, various locations, $11,300,000. 
Project 95-D-201, advanced test reactor radio-
active 
waste 
system 
upgrades, 
Idaho 
National 
Engineering Laboratory, Idaho, $4,800,000. 
Project 93-D-200, engineering services facilities. 
Knolls Atomic Power Laboratory, Niskayuna, New 
York, $3,900,000. 
Project 90-N-102, expended core facility dry cell 
project. Naval Reactors Facility, Idaho, $3,000,000. 
(b) ADJUSTMENT.—The total amount authorized to be appro-
priated pursuant to this section is the amount authorized to be 
appropriated in subsection (a) reduced by $70,000,000, for use of 
prior year balances. 
SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL. 
Funds are hereby authorized to be appropriated to the Depart-
ment of Energy for fiscal year 1996 for payment to the Nuclear 
Waste Fund established in section 302(c) of the Nuclear Waste 
PoHcy Act of 1982 (42 U.S.C. 10222(c)) in the amount of 
$248,400,000. 
Subtitle B—Recurring General Provisions 
SEC. 3121. REPROGRAMMING. 
(a) IN GENERAL.—^Until the Secretary of Energy submits to 
the congressional defense committees the report referred to in sub-
section (b) and a period of 30 days has elapsed after the date 
on which such committees receive the report, the Secretary may 
not use amounts appropriated pursuant to this title for any pro-
gram— 
(1) in amounts that exceed, in a fiscal year— 
(A) 110 percent of the amount authorized for that 
program by this title; or 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 615 
(B) $1,000,000 more than the amount authorized for 
that program by this title; or 
(2) which has not been presented to, or requested of, Con-
gress. 
(b) REPORT.—(1) The report referred to in subsection (a) is 
a report containing a full and complete statement of the action 
proposed to be taken and the facts and circumstances relied upon 
in support of such proposed action. 
(2) In the computation of the 30-day period under subsection 
(a), there shall be excluded any day on which either House of 
Congress is not in session because of an adjournment of more 
than 3 days to a day certain. 
(c) LIMITATIONS.—(1) In no event may the total amount of 
funds obligated pursuant to this title exceed the total amount 
authorized to be appropriated by this title. 
(2) Funds appropriated pursuant to this title may not be used 
for an item for which Congress has specifically denied funds. 
SEC. 3122. LIMITS ON G E N I : R A L PLANT PROJECTS. 
(a) IN GENERAL.—The Secretary of Energy may carry out any 
construction project under the general plant projects authorized 
by this title if the total estimated cost of the construction project 
does not exceed $2,000,000. 
(b) REPORT TO CONGRESS.—If, at any time during the construc-
tion of any general plant project authorized by this title, the esti-
mated cost of the project is revised because of unforeseen cost 
variations and the revised cost of the project exceeds $2,000,000, 
the Secretary shall immediately furnish a complete report to the 
congressional defense committees explaining the reasons for the 
cost variation. 
SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS. 
(a) IN GENERAL.—(1) Except as provided in paragraph (2), 
construction on a construction project may not be started or addi-
tional obligations incurred in connection with the project above 
the total estimated cost, whenever the current estimated cost of 
the construction project, which is authorized by section 3101, 3102, 
or 3103, or which is in support of national security programs of 
the Department of Energy and was authorized by any previous 
Act, exceeds by more than 25 percent the higher of— 
(A) the amount authorized for the project; or 
(B) the amount of the total estimated cost for the project 
as shown in the most recent budget justification data submitted 
to Congress. 
(2) An action described in paragraph (1) may be taken if— Reports. 
(A) the Secretary of Energy has submitted to the congres-
sional defense committees a report on the actions and the 
circumstances making such action necessary; and 
(B) a period of 30 days has elapsed after the date on 
which the report is received by the committees. 
(3) In the computation of the 30-day period under paragraph 
(2), there shall be excluded any day on which either House of 
Congress is not in session because of an adjournment of more 
than 3 days to a day certain. 
(b) EXCEPTION.—Subsection (a) shall not apply to any construc-
tion project which has a current estimated cost of less than 
$5,000,000. 
110 STAT. 616 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 3124. FUND TRANSFER AUTHORITY. 
(a) TRANSFER TO OTHER FEDERAL AGENCIES.—The Secretary 
of Energy may transfer funds authorized to be appropriated to 
the Department of Energy pursuant to this title to other Federal 
agencies for the performance of work for which the funds were 
authorized. Funds so transferred may be merged with and be avail-
able for the same purposes and for the same period as the authoriza-
tions of the Federal agency to which the amounts are transferred. 
(b) TRANSFER WITHIN DEPARTMENT OF ENERGY; LIMITATIONS.— 
(1) Subject to paragraph (2), the Secretary of Energy may transfer 
funds authorized to be appropriated to the Department of Energy 
pursuant to this title between any such authorizations. Amounts 
of authorizations so transferred may be merged with and be avail-
able for the same purposes and for the same period as the authoriza-
tion to which the amounts are transferred. 
(2) Not more than five percent of any such authorization may 
be transferred between authorizations under paragraph (1). No 
such authorization may be increased or decreased by more than 
five percent by a transfer under such paragraph. 
(3) The authority provided by this section to transfer authoriza-
tions— 
(A) may only be used to provide funds for items relating 
to weapons activities necessary for national security programs 
that have a higher priority than the items from which the 
funds are transferred; and 
(B) may not be used to provide authority for an item 
that has been denied funds by Congress. 
(c) NOTICE TO CONGRESS.—The Secretary of Energy shall 
promptly notify the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representa-
tives of any transfer of funds to or from authorizations under 
this title. 
S E C . 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION 
DESIGN. 
(a) REQUIREMENT FOR CONCEPTUAL DESIGN.—(1) Subject to 
paragraph (2) and except as provided in paragraph (3), before 
submitting to Congress a request for funds for a construction project 
that is in support of a national security program of the Department 
of Energy, the Secretary of Energy shall complete a conceptual 
design for that project. 
(2) If the estimated cost of completing a conceptual design 
for a construction project exceeds $3,000,000, the Secretary shall 
submit to Congress a request for funds for the conceptual design 
before submitting a request for funds for the construction project. 
(3) The requirement in paragraph (1) does not apply to a 
request for funds— 
(A) for a construction project the total estimated cost of 
which is less than $2,000,000; or 
(B) for emergency planning, design, and construction activi-
ties under section 3126. 
(b) AUTHORITY FOR CONSTRUCTION DESIGN.—(1) Within the 
amounts authorized by this title, the Secretary of Energy may 
carry out construction design (including architectural and engineer-
ing services) in connection with any proposed construction project 
if the total estimated cost for such design does not exceed $600,000. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 617 
(2) If the total estimated cost for construction design in connec-
tion with any construction project exceeds $600,000, funds for such 
design must be specifically authorized by law. 
SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND 
CONSTRUCTION ACTIVITIES. 
(a) AUTHORITY.—The Secretary of Energy may use any funds 
available to the Department of Energy pursuant to an authorization 
in this title, including those funds authorized to be appropriated 
for advance planning and construction design under sections 3101, 
3102, 
and 3103, to perform planning, design, and construction 
activities for any Department of Energy national security program 
construction project that, as determined by the Secretary, must 
proceed expeditiously in order to protect public health and safety, 
to meet the needs of national defense, or to protect property. 
(b) LIMITATION.—The Secretary may not exercise the authority Reports. 
under subsection (a) in the case of any construction project until 
the Secretary has submitted to the congressional defense commit-
tees a report on the activities that the Secretary intends to carry 
out under this section and the circumstances making such activities 
necessary. 
(c) SPECIFIC AUTHORITY.—The requirement of section 3125(b)(2) 
does not apply to emergency planning, design, and construction 
activities conducted under this section. 
SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PRO-
GRAMS OF THE DEPARTMENT OF ENERGY. 
Subject to the provisions of appropriations Acts and section 
3121, amounts appropriated pursuant to this title for management 
and support activities and for general plant projects are available 
for use, when necessary, in connection with all national security 
programs of the Department of Energy. 
SEC. 3128. AVAILABILITY OF FUNDS. 
When so specified in an appropriation Act, amounts appro-
priated for operation and maintenance or for plant projects may 
remain available until expended. 
Subtitle C—Program Authorizations, 
Restrictions, and Limitations 
SEC. 3131. AUTHORITY TO CONDUCT PROGRAM RELATING TO FISSILE 
22 USC 5952 
MATERIALS. 
note. 
(a) AUTHORITY.—The Secretary of Energy may conduct pro-
grams designed to improve the protection, control, and accountabil-
ity of fissile materials in Russia. 
(b) SEMI-ANNUAL REPORTS ON OBLIGATION OF FUNDS.—(1) Not 
later than 30 days after the date of the enactment of this Act, 
and thereafter not later than April 1 and October 1 of each year, 
the Secretary of Energy shall submit to Congress a report on 
each obligation during the preceding six months of funds appro-
priated for a program described in subsection (a). 
(2) Each such report shall specify— 
(A) the activities and forms of assistance for which the 
Secretary of Energy' has obligated funds; 
(B) the amount of the obligation; 
29-194 O - 96 - 21 : QL 3 Part 1 
110 STAT. 618 
PUBLIC LAW 104-106—FEB. 10, 1996 
Notification. 
42 u s e 2121 
note. 
South Carolina. 
(C) the activities and forms of assistance for which the 
Secretary anticipates obHgating funds during the six months 
immediately following the report, and the amount of each such 
anticipated obligation; and 
(D) the projected involvement (if any) of any department 
or agency of the United States (in addition to the Department 
of Energy) and of the private sector of the United States in 
the activities and forms of assistance for which the Secretary 
of Energy has obligated funds referred to in subparagraph 
(A). 
SEC. 3132. NATIONAL IGNITION FACILITY. 
None of the funds authorized to be appropriated pursuant 
to this title for construction of the National Ignition Facility may 
be obligated until— 
(1) the Secretary of Energy determines that the construc-
tion of the National Ignition Facility will not impede the nuclear 
nonproliferation objectives of the United States; and 
(2) the Secretary of Energy notifies the congressional 
defense committees of that determination. 
SEC. 3133. TRITIUM PRODUCTION PROGRAM. 
(a) ESTABLISHMENT OF PROGRAM.—The Secretary of Energy 
shall establish a tritium production program that is capable of 
meeting the tritium requirements of the United States for nuclear 
weapons. In carrying out the tritium production program, the Sec-
retary shall— 
(1) complete the tritium supply and recycling environ-
mental impact statement in preparation by the Secretary as 
of the date of the enactment of this Act; and 
(2) assess alternative means for tritium production, includ-
ing production through— 
(A) types of new and existing reactors, including multi-
purpose reactors (such as advanced light water reactors 
and gas turbine gas-cooled reactors) capable of meeting 
both the tritium production requirements and the pluto-
nium disposition requirements of the United States for 
nuclear weapons; 
(B) an accelerator; and 
(C) multipurpose reactor projects carried out by the 
private sector and the Government. 
(b) FUNDING.—Of funds authorized to be appropriated to the 
Department of Energy pursuant to section 3101, not more than 
$50,000,000 shall be available for the tritium production program 
established pursuant to subsection (a). 
(c) LOCATION OF TRITIUM PRODUCTION FACILITY.—The Secretary 
shall locate any new tritium production facility of the Department 
of Energy at the Savannah River Site, South Carolina. 
(d) COST-BENEFIT ANALYSIS.—(1) The Secretary shall include 
in the statements referred to in paragraph (2) a comparison of 
the costs and benefits of carrying out two projects for the separate 
performance of the tritium production mission of the Department 
and the plutonium disposition mission of the Department with 
the costs and benefits of carrying out one multipurpose project 
for the performance of both such missions. 
(2) The statements referred to in paragraph (1) are— 
(A) the environmental impact statement referred to in sub-
section (a)(1); 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 619 
(B) the plutonium disposition environmental impact state-
ment in preparation by the Secretary as of the date of the 
enactment of this Act; and 
(C) assessments related to the environmental impact state-
ments referred to in subparagraphs (A) and (B). 
(e) REPORT.—Not later than 45 days after the date of the 
enactment of this Act, the Secretary shall submit to the Committee 
on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on the tritium 
production program established pursuant to subsection (a). The 
report shall include a specification of— 
(1) the planned expenditures of the Department during 
fiscal year 1996 for any of the alternative means for tritium 
production assessed under subsection (a)(2); 
(2) the amount of funds required to be expended by the 
Department, and the program milestones (including feasibility 
demonstrations) required to be met, during fiscal years 1997 
through 2001 to ensure tritium production beginning not later 
than 2005 that is adequate to meet the tritium requirements 
of the United States for nuclear weapons; and 
(3) the amount of such funds to be expended and such 
program milestones to be met during such fiscal years to ensure 
such tritium production beginning not later than 2011. 
(f) TRITIUM TARGETS.—Of the funds made available pursuant 
to subsection (b), not more than $5,000,000 shall be available for 
the Idaho National Engineering Laboratory for the test and develop-
ment of nuclear reactor tritium targets for the types of reactors 
assessed under subsection (a)(2)(A). 
SEC. 3134. PAYMENT OF PENALTIES. 
The Secretary of Elnergy may pay to the Hazardous Substance 
Superfund established under section 9507 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9507), from funds appropriated to the 
Department of Energy for environmental restoration and waste 
management activities pursuant to section 3102, stipulated civil 
penalties in the amount of $350,000 assessed under the Comprehen-
sive Environmental Response, Compensation, and Liability Act of 
1980 (42 U.S.C. 9601 et seq.) against the Rocky Flats Site, Colorado. 
SEC. 3135. FISSILE MATERIALS DISPOSITION. 
(a) IN GENERAL.—Of the funds authorized to be appropriated 
to the Department of Energy for fiscal year 1996 pursuant to 
section 3103, $70,000,000 shall be available only for purposes of 
completing the evaluation of, and commencing implementation of, 
the interim- and long-term storage and disposition (including stor-
age and disposition through the use of advanced light water reactors 
and gas turbine gas-cooled reactors) of fissile materials (including 
plutonium, highly enriched uranium, and other fissile materials) 
that are excess to the national security needs of the United States. 
(b) AVAILABILITY OF FUNDS FOR MULTIPURPOSE REACTORS.— 
Of funds made available pursuant to subsection (a), sufficient funds 
shall be made available for the complete consideration of multipur-
pose reactors for the disposition of fissile materials in the pro-
grammatic environmental impact statement of the Department. 
(c) LIMITATION.—Of funds made available pursuant to sub-
section (a), $10,000,000 shall be available only for a plutonium 
resource assessment. 
110 STAT. 620 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 3136. TRITIUM RECYCLING. 
South Carolina. 
(a) IN GENERAL.—Except as provided in subsection (b), the 
following activities shall be carried out at the Savannah River 
Site, South Carolina: 
(1) All tritium recycling for weapons, including tritium 
refitting. 
(2) All activities regarding tritium formerly carried out 
at the Mound Plant, Ohio. 
(b) EXCEPTION.—The following activities may be carried out 
at the Los Alamos National Laboratory, New Mexico: 
(1) Research on tritium. 
(2) Work on tritium in support of the defense inertial 
confinement fusion program. 
(3) Provision of technical assistance to the Savannah River 
Site regarding the weapons surveillance program. 
42 u s e 2121 
SEC. 3137. MANUFACTURING INFRASTRUCTURE FOR REFABRICATION 
note. 
AND CERTIFICATION OF NUCLEAR WEAPONS STOCKPILE. 
(a) MANUFACTURING PROGRAM.—The Secretary of Energy shall 
carry out a program for purposes of establishing within the Govern-
ment a manufacturing infrastructure that has the capabilities of 
meeting the following objectives as specified in the Nuclear Posture 
Review: 
(1) To provide a stockpile surveillance engineering base. 
(2) To refabricate and certify weapon components and types 
in the enduring nuclear weapons stockpile, as necessary. 
(3) To fabricate and certify new nuclear warheads, as nec-
essary. 
(4) To support nuclear weapons. 
(5) To supply sufficient tritium in support of nuclear weap-
ons to ensure an upload hedge in the event circumstances 
require. 
(b) REQUIRED CAPABILITIES.—The manufacturing infrastructure 
established under the program under subsection (a) shall include 
the following capabilities (modernized to attain the objectives 
referred to in that subsection): 
(1) The weapons assembly capabilities of the Pantex Plant. 
(2) The weapon secondary fabrication capabilities of the 
Y-12 Plant, Oak Ridge, Tennessee. 
(3) The tritium production, recycling, and other weapons-
related capabilities of the Savannah River Site. 
(4) The non-nuclear component capabilities of the Kansas 
City Plant. 
(c) NUCLEAR POSTURE REVIEW.—For purposes of subsection (a), 
the term "Nuclear Posture Review" means the Department of 
Defense Nuclear Posture Review as contained in the Report of 
the Secretary of Defense to the President and the Congress dated 
February 19, 1995, or subsequent such reports. 
(d) FUNDING.—Of the funds authorized to be appropriated under 
section 3101(b), $143,000,000 shall be available for carrying out 
the program required under this section, of which— 
(1) $35,000,000 shall be available for activities at the 
Pantex Plant; 
(2) $30,000,000 shall be available for activities at the Y-
12 Plant, Oak Ridge, Tennessee; 
(3) $35,000,000 shall be available for activities at the 
Savannah River Site; and 
PUBLIC lAW 104-106—FEB. 10, 1996 
110 STAT. 621 
(4) $43,000,000 shall be available for activities at the Kan-
sas City Plant. 
(e) PLAN AND REPORT.—^The Secretary shall develop a plan 
for the implementation of this section. Not later than March 1, 
1996, the Secretary shall submit to Congress a report on the obliga-
tions the Secretary has incurred, and plans to incur, during fiscal 
year 1996 for the program referred to in subsection (a). 
SEC. 3138. HYDRONUCLEAR EXPERIMENTS. 
Of the funds authorized to be appropriated to the Department 
of Energy pursuant to section 3101, $30,000,000 shall be available 
to prepare for the commencement of a program of hydronuclear 
experiments at the nuclear weapons design laboratories at the 
Nevada Test Site, Nevada. The purpose of the program shall be 
to maintain confidence in the reliability and safety of the nuclear 
weapons stockpile. 
SEC. 3139. LIMITATION ON AUTHORITY TO CONDUCT HYDRONUCLEAR 
TESTS. 
Nothing in this Act may be construed to authorize the conduct 
of hydronuclear tests or to amend or repeal the requirements of 
section 507 of the Energy and Water Development Appropriations 
Act, 1993 (Pubhc Law 102-377; 106 Stat. 1343; 42 U.S.C. 2121 
note). 
SEC. 3140. FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS 
42 USC 2121 
CRITICAL TO THE DEPARTMENT OF ENERGY NUCLEAR 
note. 
WEAPONS COMPLEX. 
(a) IN GENERAL.—The Secretary of Energy shall conduct a 
fellowship program for the development of skills critical to the 
ongoing mission of the Department of Energy nuclear weapons 
complex. Under the fellowship program, the Secretary shall— 
(1) provide educational assistance and research assistance 
to eligible individuals to facilitate the development by such 
individuals of skills critical to maintaining the ongoing mission 
of the Department of Energy nuclear weapons complex; 
(2) employ eligible individuals at the facilities described 
in subsection (c) in order to facilitate the development of such 
skills by these individuals; or 
(3) provide eligible individuals with the assistance and 
the employment. 
(b) ELIGIBLE INDIVIDUALS.—Individuals eligible for participation 
in the fellowship program are the following: 
(1) Students pursuing graduate degrees in fields of science 
or engineering that are related to nuclear weapons engineering 
or to the science and technology base of the Department of 
Energy. 
(2) Individuals engaged in postdoctoral studies in such 
fields. 
(c) COVERED FACILITIES.—The Secretary shall carry out the 
fellowship program at or in connection with the following facilities: 
(1) The Kansas City Plant, Kansas City, Missouri. 
(2) The Pantex Plant, Amarillo, Texas. 
(3) The Y-12 Plant, Oak Ridge, Tennessee. 
(4) The Savannah River Site, Aiken, South Carolina. 
(d) ADMINISTRATION.—The Secretary shall carry out the fellow-
ship program at a facility referred to in subsection (c) through 
the stockpile manager of the facility. 
110 STAT. 622 
PUBLIC LAW 104-106—FEB. 10, 1996 
(e) ALLOCATION OF FUNDS.—The Secretary shall, in consultation 
with the Assistant Secretary of Energy for Defense Programs, allo-
cate funds available for the fellowship program under subsection 
(f) among the facilities referred to in subsection (c). The Secretary 
shall make the allocation after evaluating an assessment by the 
weapons program director of each such facility of the personnel 
and critical skills necessary at the facility for carrying out the 
ongoing mission of the facility. 
(f) FUNDING.—Of the funds authorized to be appropriated to 
the Department of Energy for fiscal year 1996 under section 3101(b), 
$10,000,000 may be used for the purpose of carrying out the fellow-
ship program under this section. 
SEC. 3141. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH 
AND DEVELOPMENT PURPOSES. 
Funds appropriated or otherwise made available to the Depart-
ment of Energy for fiscal year 1996 under section 3101 may be 
obligated and expended for activities under the Department of 
Energy Laboratory Directed Research and Development Program 
or under Department of Energy technology transfer programs only 
if such activities support the national security mission of the 
Department. 
SEC. 3142. PROCESSING AND TREATMENT OF HIGH-LEVEL NUCLEAR 
WASTE AND SPENT NUCLEAR FUEL RODS. 
(a) 
PROCESSING OF SPENT NUCLEAR FUEL RODS.—Of 
the 
amounts appropriated pursuant to section 3102, there shall be 
available to the Secretary of Energy to respond effectively to new 
requirements for managing spent nuclear fuel— 
(1) not more than $30,000,000, for the Savannah River 
Site for the development and implementation of a program 
for the processing, reprocessing, separation, reduction, isolation, 
and interim storage of high-level nuclear waste associated with 
aluminum clad spent fuel rods and foreign spent fuel rods; 
and 
(2) not more than $15,000,000, for the Idaho National 
Engineering Laboratory for the development and implementa-
tion of a program for the treatment, preparation, and condi-
tioning of high-level nuclear waste and spent nuclear fuel 
(including naval spent nuclear fuel), nonaluminum clad fuel 
rods, and foreign fuel rods for interim storage and final disposi-
tion. 
(b) IMPLEMENTATION PLAN.—Not later than April 30, 1996, 
the Secretary shall submit to Congress a five-year plan for the 
implementation of the programs referred to in subsection (a). The 
plan shall include— 
(1) an assessment of the facilities required to be constructed 
or upgraded to carry out the processing, separation, reduction, 
isolation and interim storage of high-level nuclear waste; 
(2) a description of the technologies, including stabilization 
technologies, that are required to be developed for the efficient 
conduct of the programs; 
(3) a projection of the dates upon which activities under 
the programs are sufficiently completed to provide for the trans-
fers of such waste to permanent repositories; and 
(4) a projection of the total cost to complete the programs. 
(c) 
ELECTROMETALLURGICAL 
WASTE 
TREATMENT 
TECH-
NOLOGIES.—Of the amount appropriated pursuant to section 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 623 
3102(c), not more than $25,000,000 shall be available for develop-
ment of electrometallurgical waste treatment technologies at the 
Argonne National Laboratory. 
(d) USE OF FUNDS FOR SETTLEMENT AGREEMENT.—Funds made 
available pursuant to subsection (a)(2) for the Idaho National 
Engineering Laboratory shall be considered to be funds made avail-
able in partial fulfillment of the terms and obligations set forth 
in the settlement agreement entered into by the United States 
with the State of Idaho in the actions captioned Public Service 
Co. of Colorado v. Batt, Civil No. 91-0035-S-EJL, and United 
States V. Batt, Civil No. 91-0054-S-EJL, in the United States 
District Court for the District of Idaho and the consent order 
of the United States District Court for the District of Idaho, dated 
October 17, 1995, that effectuates the settlement agreement. 
SEC. 3143. PROTECTION OF WORKERS AT NUCLEAR WEAPONS FACILI-
TDES. 
Of the funds authorized to be appropriated to the Department 
of Energy under section 3102, $10,000,000 shall be available to 
carry out activities authorized under section 3131 of the National 
Defense Authorization Act for Fiscal Years 1992 and 1993 (Public 
Law 102-190; 105 Stat. 1571; 42 U.S.C. 7274d), relating to worker 
protection at nuclear weapons facilities. 
SEC. 3144. DEPARTMENT OF ENERGY DECLASSIFICATION PRODUC-
TIVITY INITIATIVE. 
Of the funds authorized to be appropriated to the Department 
of Energy under section 3103, $3,000,000 shall be available for 
the Declassification Productivity Initiative of the Department of 
Energy. 
Subtitle D—Other Matters 
SEC. 3151. REPORT ON FOREIGN TRITIUM PURCHASES. 
(a) REPORT.—Not later than May 1, 1996, the President shall 
submit to the congressional defense committees a report on the 
feasibility of, the cost of, and the policy, legal, and other issues 
associated with purchasing tritium from various foreign suppliers 
in order to ensure an adequate supply of tritium in the United 
States for nuclear weapons. 
(b) FORM OF REPORT.—The report shall be submitted in 
unclassified form, but may contain a classified appendix. 
SEC. 3152. STUDY ON NUCLEAR TEST READINESS POSTURES. 
Not later than February 15, 1996, the Secretary of Energy 
shall submit to Congress a report on the costs, programmatic issues, 
and other issues associated with sustaining the capability of the 
Department of Energy— 
(1) to conduct an underground nuclear test 6 months after 
the date on which the President determines that such a test 
is necessary to ensure the national security of the United 
States; 
(2) to conduct such a test 18 months after such date; 
and 
(3) to conduct such a test 36 months after such date. 
President. 
Reports. 
110 STAT. 624 
PUBLIC LAW 104-106—FEB. 10, 1996 
42 use 2121 
SEC. 3153. MASTER PLAN FOR THE CERTIFICATION, STEWARDSHIP, 
note. 
AND MANAGEMENT OF WARHEADS IN THE NUCLEAR 
WEAPONS STOCKPILE. 
President. 
(a) MASTER PLAN REQUIREMENT.—^Not later than March 15, 
1996, the President shall submit to Congress a master plan for 
maintaining the nuclear weapons stockpile. The President shall 
submit to Congress an update of the master plan not later than 
March 15 of each year thereafter. 
(b) PLAN ELEMENTS.—The master plan and each update of 
the master plan shall set forth the following: 
(1) The numbers of weapons (including active and inactive 
weapons) for each type of weapon in the nuclear weapons 
stockpile. 
(2) The expected design lifetime of each weapon type, the 
current age of each weapon type, and any plans (including 
the analytical basis for such plans) for lifetime extensions of 
a weapon type. 
(3) An estimate of the lifetime of the nuclear and non-
nuclear components of the weapons (including active weapons 
and inactive weapons) in the nuclear weapons stockpile, and 
any plans (including the analytical basis for such plans) for 
lifetime extensions of such components. 
(4) A schedule of the modifications, if any, required for 
each weapon type (including active and inactive weapons) in 
the nuclear weapons stockpile and the cost of such modifica-
tions. 
(5) The process to be used in recertifying the safety, reliabil-
ity, and performance of each weapon type (including active 
weapons and inactive weapons) in the nuclear weapons stock-
pile. 
(6) The manufacturing infrastructure required to maintain 
V 
the nuclear weapons stockpile stewardship and management 
programs, including a detailed project plan that demonstrates 
the manner by which the Government will develop by 2002 
the capability to refabricate and certify warheads in the nuclear 
weapons stockpile and to design, fabricate, and certify new 
warheads. 
(c) FORM OF PLAN.—^The master plan and each update of the 
master plan shall be submitted in unclassified form, but may con-
tain a classified appendix. 
SEC. 3154. PROHIBITION ON INTERNATIONAL INSPECTIONS OF 
DEPARTMENT OF ENERGY FACILITIES UNLESS PROTEC-
TION OF RESTRICTED DATA IS CERTIFIED. 
42 use 2164 
(a) PROHIBITION ON INSPECTIONS.—(1) The Secretary of Energy 
note. 
may not allow an inspection of a nuclear weapons facility by the 
International Atomic Energy Agency until the Secretary certifies 
to Congress that no restricted data will be revealed during such 
inspection. 
(2) For purposes of paragraph (1), the term "restricted data" 
has the meaning provided by section 11 y. of the Atomic Energy 
Act of 1954 (42 U.S.C. 2014(y)). 
(b) EXTENSION OF NOTICE-AND-WAIT REQUIREMENT REGARDING 
PROPOSED 
COOPERATION AGREEMENTS.—Section 3155(b) of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
42 use 2153 
Law 103-337; 108 Stat. 3092) is amended by striking out "December 
note. 
31, 1995" and inserting in lieu thereof "October 1, 1996". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 625 
SEC. 3155. REVIEW OF CERTAIN DOCUMENTS BEFORE DECLASSIFICA- 
42 USC 2162 
TION AND RELEASE. 
note. 
(a) I N GENERAL.—The Secretary of Energy shall ensure that, 
before a document of the Department of Energy that contains 
national security information is released or declassified, such docu-
ment is reviewed to determine whether it contains restricted data. 
(b) LIMITATION ON DECLASSIFICATION.—The Secretary may not 
implement the automatic declassification provisions of Executive 
Order 12958 if the Secretary determines that such implementation 
could result in the automatic declassification and release of docu-
ments containing restricted data. 
(c) RESTRICTED 
DATA 
DEFINED.—In 
this section, the 
term 
"restricted data" has the meaning provided by section 11 y. of 
the Atomic Energy Act of 1954 (42 U.S.C. 2014(y)). 
SEC. 3156. ACCELERATED SCHEDULE FOR ENVIRONMENTAL RES- 42 USC 7274k 
TORATION iVND WASTE MANAGEMENT ACTIVITIES. 
note 
(a) ACCELERATED CLEANUP.—The Secretary of Energy shall 
accelerate the schedule for environmental restoration and waste 
management activities and projects for a site at a Department 
of Energy defense nuclear facility if the Secretary determines that 
such an accelerated schedule will achieve meaningful, long-term 
cost savings to the Federal Government and could substantially 
accelerate the release of land for local reuse. 
(b) CONSIDERATION OF FACTORS.—In making a determination 
under subsection (a), the Secretary shall consider the following: 
(1) The cost savings achievable by the Federal Government. 
(2) The amount of time for completion of environmental 
restoration and waste management activities and projects at 
the site that can be reduced from the time specified for comple-
tion of such activities and projects in the baseline environ-
mental management report required to be submitted for 1995 
under section 3153 of the National Defense Authorization Act 
for Fiscal Year 1994 (42 U.S.C. 7274k). 
(3) The potential for reuse of the site. 
(4) The risks that the site poses to local health and safety. 
(5) The proximity of the site to populated areas. 
(c) REPORT.—Not later than May 1, 1996, the Secretary shall 
submit to Congress a report on each site for which the Secretary 
has accelerated the schedule for environmental restoration and 
waste management activities and projects under subsection (a). 
The report shall include an explanation of the basis for the deter-
mination for that site required by such subsection, including an 
explanation of the consideration of the factors described in sub-
section (b). 
(d) SAVINGS PROVISION.—Nothing in this section may be con-
strued to affect a specific statutory requirement for a specific 
environmental restoration or waste management activity or project 
or to modify or otherwise affect applicable statutory or regulatory 
environmental restoration and waste management requirements, 
including substantive standards intended to protect public health 
and the environment. 
SEC. 3157. SENSE OF CONGRESS REGARDING CERTAIN ENVIRON-
MENTAL RESTORATION REQUIREMENTS. 
It is the sense of Congress that— 
110 STAT. 626 
PUBLIC LAW 104-106—FEB. 10, 1996 
(1) an individual acting within the scope of that individual's 
employment with a Federal agency should not be personally 
subject to civil or criminal sanctions (to the extent such sanc-
tions are provided for by law) as a result of the failure to 
comply with an environmental cleanup requirement under the 
Solid Waste Disposal Act or the Comprehensive Environmental 
Response, Compensation, and Liability Act or an analogous 
requirement under a comparable Federal, State, or local law, 
in any circumstance under which such failure to comply is 
due to an insufficiency of funds appropriated to carry out such 
requirement; 
(2) Federal and State enforcement authorities should 
refrain from an enforcement action in a circumstance described 
in paragraph (1); and 
(3) if funds appropriated for a fiscal year after fiscal year 
1995 are insufficient to carry out any such environmental 
cleanup requirement. Congress should elicit the views of Fed-
eral agencies, affected States, and the public, and consider 
appropriate legislative action to address personal criminal 
liability in a circumstance described in paragraph (1) and any 
related issues pertaining to potential liability of a Federal 
agency. 
SEC. 3158. RESPONSIBILITY FOR DEFENSE PROGRAMS EMERGENCY 
RESPONSE PROGRAM. 
The Office of Military Applications under the Assistant Sec-
retary of Energy for Defense Programs shall retain responsibility 
for the Defense Programs Emergency Response Program within 
the Department of Energy. 
42 u s e 7271b 
SEC. 3159. REQUIREMENTS FOR DEPARTMENT OF ENERGY WEAPONS 
note. 
ACTIVITIES BUDGETS FOR FISCAL YEARS AFTER FISCAL 
YEAR 1996. 
(a) IN GENERAL.—The weapons activities budget of the Depart-
ment of Energy shall be developed in accordance with the Nuclear 
Posture Review, the Post Nuclear Posture Review Stockpile Memo-
randum currently under development, and the programmatic and 
technical requirements associated with the review and memoran-
dum. 
(b) REQUIRED DETAIL.—The Secretary of Energy shall include 
in the materials that the Secretary submits to Congress in support 
of the budget for a fiscal year submitted by the President pursuant 
to section 1105 of title 31, United States Code, a long-term program 
plan, and a near-term program plan, for the certification and 
stewardship of the nuclear weapons stockpile. 
(c) DEFINITION.—In this section, the term "Nuclear Posture 
Review" means the Department of Defense Nuclear Posture Review 
as contained in the report of the Secretary of Defense to the Presi-
dent and the Congress dated February 19, 1995, or in subsequent 
such reports. 
SEC. 3160. REPORT ON HYDRONUCLEAR TESTING. 
(a) REPORT.—The Secretary of Energy shall direct the joint 
preparation by the Directors of the Lawrence Livermore National 
Laboratory and the Los Alamos National Laboratory of a report 
on the advantages and disadvantages with respect to the safety 
and reliability of the nuclear weapons stockpile of permitting alter-
native limits to the current limit on the explosive yield of 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 627 
hydronuclear and other explosive tests. The report shall address 
the following explosive yield limits: 
(1) 4 pounds (TNT equivalent). 
(2) 400 pounds (TNT equivalent). 
(3) 4,000 pounds (TNT equivalent). 
(4) 40,000 pounds (TNT equivalent). 
(5) 400 tons (TNT equivalent). 
(b) FUNDING.—The Secretary shall make available funds appro-
priated to the Department of Energy pursuant to section 3101 
for preparation of the report required under subsection (a). 
SEC. 3161. APPLICABILITY OF ATOMIC ENERGY COMMUNITY ACT OF 
1955 TO LOS ALAMOS, NEW MEXICO. 
(a) DATE OF TRANSFER OF UTILITIES.—Section 72 of the Atomic 
Energy Community Act of 1955 (42 U.S.C. 2372) is amended by 
striking out "not later than five years after the date it is included 
within this Act" and inserting in lieu thereof "not later than June 
30, 1998". 
(b) DATE OF TRANSFER OF MUNICIPAL INSTALLATIONS.—Section 
83 of such Act (42 U.S.C. 2383) is amended by striking out "not 
later than five years after the date it is included within this Act" 
and inserting in lieu thereof "not later than June 30, 1998". 
(c) RECOMMENDATION FOR FURTHER ASSISTANCE PAYMENTS.— 
Section 9 Id. of such Act (42 U.S.C. 2391) is amended— 
(1) by striking out ", and the Los Alamos School Board;" 
and all that follows through "county of Los Alamos, New Mex-
ico" and inserting in lieu thereof "; or not later than June 
30, 1996, in the case of the Los Alamos School Board and 
the county of Los Alamos, New Mexico"; and 
(2) by adding at the end the following new sentence: "If Reports, 
the recommendation under the preceding sentence regarding 
the Los Alamos School Board or the county of Los Alamos, 
New Mexico, indicates a need for further assistance for the 
school board or the county, as the case may be, after June 
30, 1997, the recommendation shall include a report and plan 
describing the actions required to eliminate the need for further 
assistance for the school board or the county, including a pro-
posal for legislative action to carry out the plan.". 
(d) CONTRACT TO MAKE PAYMENTS.—Section 94 of such Act 
(42 U.S.C. 2394) is amended— 
(1) by striking out "June 30, 1996" each place it appears 
in the proviso in the first sentence and inserting in lieu thereof 
"June 30, 1997"; and 
(2) by striking out "July 1, 1996" in the second sentence 
and inserting in lieu thereof "July 1, 1997". 
SEC. 3162. S E N S E OF CONGRESS REGARDING SHIPMENTS OF SPENT 
NUCLEAR FUEL. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The United States has entered into a settlement agree-
ment with the State of Idaho in the actions captioned Public 
Service Co. of Colorado v. Batt, Civil No. 91-0035-S-EJL, 
and United States v. Batt, Civil No. 91-0054-S-EJL, in the 
United States District Court for the District of Idaho, regarding 
shipment of naval spent nuclear fuel to Idaho, examination 
and storage of such fuel in Idaho, and other matters. 
(2) Under this court enforceable agreement— 
(A) the State of Idaho has agreed— 
110 STAT. 628 
PUBLIC LAW 104-106—FEB. 10, 1996 
(i) to accept 575 shipments of naval spent nuclear 
fuel from the Navy into Idaho between October 17, 
1995 and 2035; 
(ii) to accept certain shipments of spent nuclear 
fuel from the Department of Energy into Idaho between 
October 17, 1995 and 2035; and 
(iii) to allow the Navy and the Department of 
Energy, on an interim basis, to store the spent nuclear 
fuel in Idaho over the next 40 years; and 
(B) the United States has made commitments— 
(i) to remove all spent nuclear fuel (except certain 
quantities for testing) from Idaho by 2035; and 
(ii) to facilitate the cleanup and stabilization of 
radioactive waste at the Idaho National Engineering 
Laboratory. 
(3) The settlement agreement allows the Department of 
Energy and the Department of the Navy to meet responsibilities 
that are important to the national security interests of the 
United States. 
(4) Authorizations and appropriations of funds will be nec-
essary in order to provide for fulfillment of the terms and 
obligations set forth in the settlement agreement. 
(b) SENSE OF CONGRESS.—(1) Congress recognizes the need 
to implement the terms, conditions, rights, and obligations con-
tained in the settlement agreement referred to in subsection (a)(1) 
and the consent order of the United States District Court for the 
District of Idaho, dated October 17, 1995, that effectuates the settle-
ment agreement in accordance with those terms, conditions, rights, 
and obligations. 
(2) It is the sense of Congress that funds requested by the 
President to carry out the settlement agreement and such consent 
order should be appropriated for that purpose. 
TITLE XXXII—DEFENSE NUCLEAR 
FACILITIES SAFETY BOARD 
SEC. 3201. AUTHORIZATION. 
There are authorized to be appropriated for fiscal year 1996, 
$17,000,000 for the operation of the Defense Nuclear Facilities 
Safety Board under chapter 21 of the Atomic Energy Act of 1954 
(42 U.S.C. 2286 et seq.). 
TITLE XXXIII—NATIONAL DEFENSE 
STOCKPILE 
Subtitle A—^Authorization of Disposals and 
Use of Funds 
SEC. 3301. DEFINITIONS. 
For purposes of this subtitle: 
(1) The term "National Defense Stockpile" means the stock-
pile provided for in section 4 of the Strategic and Critical 
Materials Stock Piling Act (50 U.S.C. 98c). 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 629 
(2) The term "National Defense Stockpile Transaction 
Fund" means the fund in the Treasury of the United States 
established under section 9(a) of the Strategic and Critical 
Materials Stock Pihng Act (50 U.S.C. 98h(a)). 
SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS. 
(a) OBLIGATION OF STOCKPILE FUNDS.—During fiscal year 1996, 
the National Defense Stockpile Manager may obligate up to 
$77,100,000 of the funds in the National Defense Stockpile Trans-
action Fund for the authorized uses of such funds under section 
9(b)(2) of the Strategic and Critical Materials Stock Piling Act 
(50 U.S.C. 98h(b)(2)). 
(b) ADDITIONAL OBLIGATIONS.—The National Defense Stockpile 
Manager may obligate amounts in excess of the amount specified 
in subsection (a) if the National Defense Stockpile Manager notifies 
Congress that extraordinary or emergency conditions necessitate 
the additional obligations. The National Defense Stockpile Manager 
may make the additional obligations described in the notification 
after the end of the 45-day period beginning on the date Congress 
receives the notification. 
(c) LIMITATIONS.—The authorities provided by this section shall 
be subject to such limitations as may be provided in appropriations 
Acts. 
SEC. 3303. DISPOSAL OF CHROMITE AND MANGANESE ORES AND 
CHROMIUM FERRO AND MANGANESE METAL ELECTRO-
LYTIC. 
(a) DOMESTIC UPGR/UDING.—In offering to enter into agreements President, 
pursuant to any provision of law for the disposal from the National 
Defense Stockpile of chromite and manganese ores or chromium 
ferro and manganese metal electrolytic, the President shall give 
a right of first refusal on all such offers to domestic ferroalloy 
upgraders. 
(b) DOMESTIC FERROALLOY UPGRADER DEFINED.—For purposes 
of this section, the tenn "domestic ferroalloy upgrader" means a 
company or other business entity that, as determined by the Presi-
dent— 
(1) is engaged in operations to upgrade chromite or man-
ganese ores of metallurgical grade or chromium ferro and man-
ganese metal electrolytic; and 
(2) conducts a significant level of its research, development, 
engineering, and upgrading operations in the United States. 
SEC. 3304. RESTRICTIONS ON DISPOSAL OF MANGANESE FERRO. 
(a) DISPOSAL OF LOWER GRADE MATERIAL FIRST.—The Presi-
dent may not dispose of high carbon manganese ferro in the 
National Defense Stockpile that meets the National Defense Stock-
pile classification of Grade One, Specification 30(a), as revised on 
May 22, 1992, until completing the disposal of all manganese ferro 
in the National Defense Stockpile that does not meet such classifica-
tion. The President may not reclassify manganese ferro in the 
National Defense Stockpile after the date of the enactment of this 
Act. 
(b) REQUIREMENT FOR REMELTING B
Y DOMESTIC FERROALLOY 
PRODUCERS.—Manganese ferro in the National Defense Stockpile 
that does not meet the classification specified in subsection (a) 
may be sold only for remelting by a domestic ferroalloy producer 
110 STAT. 630 
PUBLIC LAW 104-106—FEB. 10, 1996 
unless the President determines that a domestic ferroalloy producer 
is not available to acquire the material. 
(c) DOMESTIC FERROALLOY PRODUCER DEFINED.—For purposes 
of this section, the term "domestic ferroalloy producer" means a 
company or other business entity that, as determined by the Presi-
dent— 
(1) is engaged in operations to upgrade manganese ores 
of metallurgical grade or manganese ferro; and 
(2) conducts a significant level of its research, development, 
engineering, and upgrading operations in the tJnited States. 
SEC. 3305. TITANIUM 
INITIATIVE 
TO 
SUPPORT 
BATTLE 
TANK 
UPGRADE PROGRAM. 
During each of the fiscal years 1996 through 2003, the Secretary 
of Defense shall transfer from stocks of the National Defense Stock-
pile up to 250 short tons of titanium sponge to the Secretary 
of the Army for use in the weight reduction portion of the main 
battle tank upgrade program. Transfers under this section shall 
be without charge to the Army, except that the Secretary of the 
Army shall pay all transportation and related costs incurred in 
connection with the transfer. 
Subtitle B—Programmatic Change 
SEC. 3311. TRANSFER OF EXCESS DEFENSE-RELATED MATERIALS TO 
STOCKPILE FOR DISPOSAL. 
(a) TRANSFER AND DISPOSAL.—Section 4 of the Strategic and 
Critical Materials Stock Piling Act (50 U.S.C. 98c) is amended 
by adding at the end the following new subsection: 
"(c)(1) The Secretary of Energy, in consultation with the Sec-
retary of Defense, shall transfer to the stockpile for disposal in 
accordance with this Act uncontaminated materials that are in 
the Department of Energy inventory of materials for the production 
of defense-related items, are excess to the requirements of the 
Department for that purpose, and are suitable for transfer to the 
stockpile and disposal through the stockpile. 
"(2) The Secretary of Defense shall determine whether materials 
are suitable for transfer to the stockpile under this subsection, 
are 
suitable 
for 
disposal 
through 
the 
stockpile, 
and 
are 
uncontaminated.". 
(b) CONFORMING AMENDMENT.—Subsection (a) of such section 
is amended by adding at the end the following: 
"(10) Materials transferred to the stockpile under sub-
section (c).". 
TITLE XXXIV—NAVAL PETROLEUM 
RESERVES 
Subtitle A—^Administration of Naval 
Petroleum Reserves 
SEC. 3401. AUTHORIZATION OF APPROPRIATIONS. 
There is hereby authorized to be appropriated to the Secretary 
of Energy $148,786,000 for fiscal year 1996 for the purpose of 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 631 
carrying out activities under chapter 641 of title 10, United States 
Code, relating to the naval petroleum reserves (as defined in section 
7420(2) of such title). Funds appropriated pursuant to such 
authorization shall remain available until expended. Of the amount 
appropriated pursuant to the authorization of appropriations in 
the preceding sentence, the Secretary may use not more than 
$7,000,000 for carrying out activities related to the sale of Naval 
Petroleum Reserve Numbered 1 under section 3412. 
SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM 
10 USC 7430 
DURING FISCAL YEAR 1996. 
note. 
Notwithstanding section 7430(b)(2) of title 10, United States 
Code, during fiscal year 1996, any sale of any part of the United 
States share of petroleum produced from Naval Petroleum Reserves 
Numbered 1, 2, and 3 shall be made at a price not less than 
90 percent of the current sales price, as estimated by the Secretary 
of Energy, of comparable petroleum in the same area. 
SEC. 3403. EXTENSION OF OPERATING CONTRACT FOR NAVAL PETRO-
^ 
LEUM RESERVE NUMBERED 1. 
Section 3503 of the National Defense Authorization Act of Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 3111) is amended by 
striking out "two years" in the first sentence and inserting in 
lieu thereof "three years". 
Subtitle B—Sale of Naval Petroleum 
Reserve 
SEC. 3411. DEFINITIONS. 
For purposes of this subtitle: 
(1) The terms "Naval Petroleum Reserve Numbered 1" 
and "reserve" mean Naval Petroleum Reserve Numbered 1, 
commonly referred to as the Elk Hills Unit, located in Kern 
County, California, and established by Executive order of the 
President, dated September 2, 1912. 
(2) The term "naval petroleum reserves" has the meaning 
given that term in section 7420(2) of title 10, United States 
Code, except that the term does not include Naval Petroleum 
Reserve Numbered 1. 
(3) The term "unit plan contract" means the unit plan 
contract between equity owners of the lands within the bound-
aries of Naval Petroleum Reserve Numbered 1 entered into 
on June 19, 1944. 
(4) The term "effective date" means the date of the enact-
ment of this Act. 
(5) The term "Secretary" means the Secretary of Energy. 
(6) The term "appropriate congressional committees" means 
the Committee on Armed Services of the Senate and the 
Committee on National Security and the Committee on Com-
merce of the House of Representatives. 
SEC. 3412. SALE OF NAVAL PETROLEUM RESERVE NUMBERED 1. 
(a) SALE OF RESERVE REQUIRED.—Subject to section 3414, 
not 
later than two years after the effective date, the Secretary of Energy 
shall enter into one or more contracts for the sale of all right, 
title, and interest of the United States in and to all lands owned 
California. 
10 USC 7420 
note. 
110 STAT. 632 
PUBLIC LAW 104-106—FEB. 10, 1996 
or controlled by the United States inside Naval Petroleum Reserve 
Numbered 1. Chapter 641 of title 10, United States Code, shall 
not apply to the sale of the reserve. 
(b) EQUITY FINALIZATION.—(1) Not later than eight months 
after the effective date, the Secretary shall fmalize equity interests 
of the known oil and gas zones in Naval Petroleum Reserve Num-
bered 1 in the manner provided by this subsection. 
(2) The Secretary shall retain the services of an independent 
petroleum engineer, mutually acceptable to the equity owners, who 
shall prepare a recommendation on final equity figures. The Sec-
retary may accept the recommendation of the independent petro-
leum engineer for final equity in each known oil and gas zone 
and establish final equity interest in Naval Petroleum Reserve 
Numbered 1 in accordance with the recommendation, or the Sec-
retary may use such other method to establish final equity interest 
in the reserve as the Secretary considers appropriate. 
(3) If, on the effective date, there is an ongoing equity redeter-
mination dispute between the equity owners under section 9(b) 
of the unit plan contract, the dispute shall be resolved in the 
manner provided in the unit plan contract within eight months 
after the effective date. The resolution shall be considered final 
for all purposes under this section. 
Publication. 
(c) NOTICE OF SALE.—Not later than two months after the 
effective date, the Secretary shall publish a notice of intent to 
sell Naval Petroleum Reserve Numbered 1. The Secretary shall 
make all technical, geological, and financial information relevant 
to the sale of the reserve available to all interested and qualified 
buyers upon request. The Secretary, in consultation with the 
Administrator of General Services, shall ensure that the sale process 
is fair and open to all interested and qualified parties. 
(d) ESTABLISHMENT OF MINIMUM SALE PRICE.—(1) Not later 
than seven months after the effective date, the Secretary shall 
retain the services of five independent experts in the valuation 
of oil and gas fields to conduct separate assessments, in a manner 
consistent with commercial practices, of the value of the interest 
of the United States in Naval Petroleum Reserve Numbered 1. 
The independent experts shall complete their assessments within 
11 months after the effective date. In making their assessments, 
the independent experts shall consider (among other factors)— 
(A) all equipment and facilities to be included in the sale; 
(B) the estimated quantity of petroleum and natural gas 
in the reserve; and 
(C) the net present value of the anticipated revenue stream 
that the Secretary and the Director of the Office of Management 
and Budget jointly determine the Treasury would receive from 
the reserve if the reserve were not sold, adjusted for any 
anticipated increases in tax revenues that would result if the 
reserve were sold. 
Reports. 
(2) The independent experts retained under paragraph (1) shall 
also determine and submit to the Secretary the estimated total 
amount of the cost of any environmental restoration and remedi-
ation necessary at the reserve. The Secretary shall report the esti-
mate to the Director of the Office of Management and Budget, 
the Secretary of the Treasury, and Congress. 
(3) The Secretary, in consultation with the Director of the 
Office of Management and Budget, shall set the minimum accept-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 633 
able price for the reserve. The Secretary may not set the minimum 
acceptable price below the higher of— 
(A) the average of the five assessments prepared under 
paragraph (1); and 
(B) the average of three assessments after excluding the 
high and low assessments. 
(e) ADMINISTRATION OF SALE; DRAFT CONTRACT.—(1) Not later 
than two months after the effective date, the Secretary shall retain 
the services of an investment banker or an appropriate equivalent 
financial adviser to independently administer, in a manner consist-
ent with commercial practices and in a manner that maximizes 
sale proceeds to the Government, the sale of Naval Petroleum 
Reserve Numbered 1 under this section. Costs and fees of retaining 
the investment banker or financial adviser may be paid out of 
the proceeds of the sale of the reserve. 
(2) Not later than 11 months after the effective date, the 
investment banker or financial adviser retained under paragraph 
(1) shall complete a draft contract or contracts for the sale of 
Naval Petroleum Reserve Numbered 1, which shall accompany the 
solicitation of offers and describe the terms and provisions of the 
sale of the interest of the United States in the reserve. 
(3) The draft contract or contracts shall identify— 
(A) all equipment and facilities to be included in the sale; 
and 
(B) any potential claim or liability (including liability for 
environmental restoration and remediation), and the extent 
of any such claim or liability, for which the United States 
is responsible under subsection (g). 
(4) The draft contract or contracts, including the terms and 
provisions of the sale of the interest of the United States in the 
reserve, shall be subject to review and approval by the Secretary, 
the Secretary of the Treasury, and the Director of the Office of 
Management and Budget. Each of those officials shall complete 
the review of, and approve or disapprove, the draft contract or 
contracts not later than 12 months after the effective date. 
(f) SOLICITATION OF OFFERS.—(1) Not later than 13 months PubUcation. 
after the effective date, the Secretary shall publish the solicitation 
of offers for Naval Petroleum Reserve Numbered 1. 
(2) Not later than 18 months after the effective date, the 
Secretary shall identify the highest responsible offer or offers for 
purchase of the interest of the United States in Naval Petroleum 
Reserve Numbered 1 that, in total, meet or exceed the minimum 
acceptable price determined under subsection (d)(3). 
(3) The Secretary shall take such action immediately after 
the effective date as is necessary to obtain from an independent 
petroleum engineer within 10 months after that date a reserve 
report prepared in a manner consistent with commercial practices. 
The Secretary shall use the reserve report in support of the prepara-
tion of the solicitation of offers for the reserve. 
(g) FUTURE LIABILITIES.—To effectuate the sale of the interest 
of the United States in Naval Petroleum Reserve Numbered 1, 
the Secretary may extend such indemnities and warranties as the 
Secretary considers reasonable and necessary to protect the pur-
chaser from claims arising from the ownership in the reserve by 
the United States. 
(h) MAINTAINING PRODUCTION.—Until the sale of Naval Petro-
leum Reserve Numbered 1 is completed under this section, the 
110 STAT. 634 
PUBLIC LAW 104-106—FEB. 10, 1996 
Secretary shall continue to produce the reserve at the maximum 
daily oil or gas rate from a reservoir, which will permit maximum 
economic development of the reservoir consistent with sound oil 
field engineering practices in accordance with section 3 of the unit 
plan contract. 
Notification. 
(i) NONCOMPLIANCE WiTH DEADLINES.—At any time during the 
two-year period beginning on the effective date, if the Secretary 
determines that the actions necessary to complete the sale of the 
reserve within that period are not being taken or timely completed, 
the Secretary shall transmit to the appropriate congressional 
committees a written notification of that determination together 
with a plan setting forth the actions that will be taken to ensure 
that the sale of the reserve will be completed within that period. 
The Secretary shall consult with the Director of the Office of 
Management and Budget in preparing the plan for submission 
to the committees. 
(j) OVERSIGHT.—^The Comptroller General shall monitor the 
actions of the Secretary relating to the sale of the reserve and 
report to the appropriate congressional committees any findings 
on such actions that the Comptroller General considers appropriate 
to report to the committees. 
(k) ACQUISITION OF SERVICES.—The Secretary may enter into 
contracts for the acquisition of services required under this section 
under the authority of paragraph (7) of section 303(c) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253(c)), 
except that the notification required under subparagraph (B) of 
such paragraph for each contract shall be submitted to Congress 
not less than 7 days before the award of the contract. 
SEC. 3413. EFFECT OF SALE OF RESERVE. 
(a) EFFECT ON EXISTING CONTRACTS.—(1) In the case of any 
contract, in effect on the effective date, for the purchase of produc-
tion from any part of the United States' share of Naval Petroleum 
Reserve Numbered 1, the sale of the interest of the United States 
in the reserve shall be subject to the contract for a period of 
three months after the closing date of the sale or until termination 
of the contract, whichever occurs first. The term of any contract 
entered into after the effective date for the purchase of the produc-
tion shall not exceed the anticipated closing date for the sale of 
the reserve. 
(2) The Secretary shall exercise the termination procedures 
provided in the contract between the United States and Bechtel 
Petroleum Operation, Inc., Contract Number DE-ACO1-85FE60520 
so that the contract terminates not later than the date of closing 
of the sale of Naval Petroleum Reserve Numbered 1 under section 
3412. 
(3) The Secretary shall exercise the termination procedures 
provided in the unit plan contract so that the unit plan contract 
terminates not later than the date of closing of the sale of reserve. 
(b) EFFECT ON ANTITRUST LAWS.—Nothing in this subtitle shall 
be construed to alter the application of the antitrust laws of the 
United States to the purchaser or purchasers (as the case may 
be) of Naval Petroleum Reserve Numbered 1 or to the lands in 
the reserve subject to sale under section 3412 upon the completion 
of the sale. 
(c) PRESERVATION OF PRIVATE RIGHT, TITLE, AND INTEREST.— 
Nothing in this subtitle shall be construed to adversely affect the 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 635 
ownership interest of any other entity having any right, title, and 
interest in and to lands within the boundaries of Naval Petroleum 
Reserve Numbered 1 and which are subject to the unit plan con-
tract. 
(d) TRANSFER OF OTHERWISE NONTRANSFERABLE PERMIT.—The 
Secretary may transfer to the purchaser or purchasers (as the 
case may be) of Naval Petroleum Reserve Numbered 1 the incidental 
take permit regarding the reserve issued to the Secretary by the 
United States Fish and Wildlife Service and in effect on the effective 
date if the Secretary determines that transfer of the permit is 
necessary to expedite the sale of the reserve in a manner that 
maximizes the value of the sale to the United States. The trans-
ferred permit shall cover the identical activities, and shall be subject 
to the same terms and conditions, as apply to the permit at the 
time of the transfer. 
SEC. 3414. CONDITIONS ON SALE PROCESS. 
(a) NOTICE REGARDING SALE CONDITIONS.—The Secretary may 
not enter into any contract for the sale of Naval Petroleum Reserve 
Numbered 1 under section 3412 until the end of the 31-day period 
beginning on the date on which the Secretary submits to the appro-
priate congressional committees a written notification— 
(1) describing the conditions of the proposed sale; and 
(2) containing an assessment by the Secretary of whether 
it is in the best interests of the United States to sell the 
reserve under such conditions. 
(b) AUTHORITY TO SUSPEND SALE.—(1) The Secretary may sus-
pend the sale of Naval Petroleum Reserve Numbered 1 under 
section 3412 if the Secretary and the Director of the Office of 
Management and Budget jointly determine that— 
(A) the sale is proceeding in a manner inconsistent with 
achievement of a sale price that reflects the full value of the 
reserve; or 
(B) a course of action other than the immediate sale of 
the reserve is in the best interests of the United States. 
(2) Immediately after making a determination under paragraph 
Notification. 
(1) to suspend the sale of Naval Petroleum Reserve Numbered 
1, the Secretary shall submit to the appropriate congressional 
committees a written notification describing the basis for the deter-
mination and requesting a reconsideration of the merits of the 
sale of the reserve. 
(c) EFFECT OF RECONSIDERATION NOTICE.—^After the Secretary 
submits a notification under subsection (b), the Secretary may 
not complete the sale of Naval Petroleum Reserve Numbered 1 
under section 3412 or any other provision of law unless the sale 
of the reserve is authorized in an Act of Congress enacted after 
the date of the submission of the notification. 
SEC. 3415. TREATMENT OF STATE OF CALIFORNLV CLAIM REGARDING 
RESERVE. 
(a) RESERVATION OF FUNDS.—^After the costs incurred in the 
conduct of the sale of Naval Petroleum Reserve Numbered 1 under 
section 3412 are deducted, nine percent of the remaining proceeds 
from the sale of the reserve shall be reserved in a contingent 
fund in the Treasury for payment to the State of California for 
the Teachers' Retirement Fund of the State in the event that, 
and to the extent that, the claims of the State against the United 
110 STAT. 636 
PUBLIC LAW 104-106—FEB. 10, 1996 
States regarding production and proceeds of sale from Naval Petro-
leum Reserve Numbered 1 are— 
(1) settled by agreement with the United States under 
subsection (c); or 
(2) finally resolved in favor of the State by a court of 
competent jurisdiction, if a settlement agreement is not reached. 
(b) DISPOSITION OF FUNDS.—In such amounts as may be pro-
vided in appropriation Acts, amounts in the contingent fund shall 
be available for paying a claim described in subsection (a). After 
final disposition of the claims, any unobligated balance in the 
contingent fund shall be credited to the general fund of the Treas-
ury. If no payment is made from the contingent fund within 10 
years after the effective date, amounts in the contingent fund shall 
be credited to the general fund of the Treasury. 
(c) SETTLEMENT OFFER.—Not later than 30 days after the date 
of the sale of Naval Petroleum Reserve Numbered 1 under section 
3412, the Secretary shall offer to settle all claims of the State 
of California against the United States with respect to lands in 
the reserve located in sections 16 and 36 of township 30 south, 
range 23 east, Mount Diablo Principal Meridian, California, and 
production or proceeds of sale from the reserve, in order to provide 
proper compensation for the State's claims. The Secretary shall 
base the amount of the offered settlement payment from the contin-
gent fund on the fair value for the State's claims, including the 
mineral estate, not to exceed the amount reserved in the contingent 
fund. 
(d) RELEASE OF CLAIMS.—^Acceptance of the settlement offer 
made under subsection (c) shall be subject to the condition that 
all claims against the United States by the State of California 
for the Teachers' Retirement Fund of the State be released with 
respect to lands in Naval Petroleum Reserve Numbered 1, including 
sections 16 and 36 of township 30 south, range 23 east. Mount 
Diablo Principal Meridian, California, or production or proceeds 
of sale from the reserve. 
SEC. 
3416. 
STUDY OF FUTURE OF OTHER NAVAL PETROLEUM 
RESERVES. 
(a) STUDY REQUIRED.—The Secretary of Energy shall conduct 
a study to determine which of the following options, or combinations 
of options, regarding the naval petroleum reserves (other than 
Naval Petroleum Reserve Numbered 1) would maximize the value 
of the reserves to the United States: 
(1) Retention and operation of the naval petroleum reserves 
by the Secretary under chapter 641 of title 10, United States 
Code. 
(2) Transfer of all or a part of the naval petroleum reserves 
to the jurisdiction of another Federal agency for administration 
under chapter 641 of title 10, United States Code. 
(3) Transfer of all or a part of the naval petroleum reserves 
to the Department of the Interior for leasing in accordance 
with the Mineral Leasing Act (30 U.S.C. 181 et seq.) and 
surface management in accordance with the Federal Land Pol-
icy and Management Act (43 U.S.C. 1701 et seq.). 
(4) Sale of the interest of the United States in the naval 
petroleum reserves. 
(b) 
CONDUCT OF STUDY.—The Secretary shall retain an 
independent petroleum consultant to conduct the study. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 637 
(c) CONSIDERATIONS UNDER STUDY.—^An examination of the 
value to be derived by the United States from the transfer or 
sale of the naval petroleum reserves shall include an assessment 
and estimate of the fair market value of the interest of the United 
States in the naval petroleum reserves. The assessment and esti-
mate shall be made in a manner consistent with customary property 
valuation practices in the oil and gas industry. 
(d) REPORT AND RECOMMENDATIONS REGARDING STUDY.—Not 
later than June 1, 1996, the Secretary shall submit to Congress 
a report describing the results of the study and containing such 
recommendations (including proposed legislation) as the Secretary 
considers necessary to implement the option, or combination of 
options, identified in the study that would maximize the value 
of the naval petroleum reserves to the United States. 
TITLE XXXV—PANAMA CANAL 
COMMISSION 
Subtitle A—^Authorization of 
Appropriations 
SEC. 3501. SHORT TITLE. 
This subtitle may be cited as the "Panama Canal Commission 
Authorization Act for Fiscal Year 1996". 
SEC. 3502. AUTHORIZATION OF EXPENDITURES. 
(a) IN GENERAL.—Subject to subsection (b), the Panama Canal 
Commission is authorized to m.ake such expenditures within the 
limits of funds and borrowing authority available to it in accordance 
with law, and to make such contracts and commitments without 
regard to fiscal year limitations, as may be necessary under the 
Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.) for the operation, 
maintenance, and improvement of the Panama Canal for fiscal 
year 1996. 
(b) LIMITATIONS.—For fiscal year 1996, the Panama Canal 
Commission may expend from funds in the Panama Canal Revolving 
Fund not more than $50,741,000 for administrative expenses, of 
which— 
(1) not more than $15,000 may be used for official reception 
and representation expenses of the Supervisory Board of the 
Commission; 
(2) not more than $10,000 may be used for official reception 
and representation expenses of the Secretary of the Commis-
sion; and 
(3) not more than $45,000 may be used for official reception 
and representation expenses of the Administrator of the 
Commission. 
(c) REPLACEMENT VEHICLES.—Funds available to the Panama 
Canal Commission shall be available for the purchase of not to 
exceed 38 passenger motor vehicles (including large heavy-duty 
vehicles to be used to transport Commission personnel across the 
isthmus of Panama) at a cost per vehicle of not more than $19,500. 
A vehicle may be purchased with such funds only as necessary 
to replace another passenger motor vehicle of the Commission. 
Panama Canal 
Commission 
Authorization 
Act for Fiscal 
Year 1996. 
110 STAT. 638 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 3503. EXPENDITURES IN ACCORDANCE WITH OTHER LAWS. 
Expenditures authorized under this subtitle may be made only 
in accordance with the Panama Canal Treaties of 1977 and any 
law of the United States implementing those treaties. 
P
a
n
a
m
a C
a
n
a
l 
Subtltle B—Reconstitutloii of Commissioii 
Amendments Act 
^^ 
j y^ 
j • 
of 1995. 
as Government Corporation 
22 u s e 3601 
SEC. 3521. SHORT TITLE. 
This subtitle may be cited as the "Panama Canal Amendments 
Act of 1995". 
SEC. 3522. RECONSTITUTION OF COMMISSION AS GOVERNMENT COR-
PORATION. 
(a) IN GENERAL.—Section 1101 of the Panama Canal Act of 
1979 (22 U.S.C. 3611) is amended to read as follows: 
" E S T A B L I S H M E N T , PURPOSES, OFFICES, AND RESIDENCE OF 
COMMISSION 
"SEC 1101. (a) For the purposes of managing, operating, and 
maintaining the Panama Canal and its complementary works, 
installations and equipment, and of conducting operations incident 
thereto, in accordance with the Panama Canal Treaty of 1977 
and related agreements, the Panama Canal Commission (herein-
after in this Act referred to as the 'Commission') is established 
as a wholly owned government corporation (as that term is used 
in chapter 91 of title 31, United States Code) within the executive 
branch of the Government of the United States. The authority 
of the President with respect to the Commission shall be exercised 
through the Secretary of Defense. 
"(b) The principal office of the Commission shall be located 
in the Republic of Panama in one of the areas made available 
for use of the United States under the Panama Canal Treaty 
of 1977 and related agreements, but the Commission may establish 
branch offices in such other places as it considers necessary or 
appropriate for the conduct of its business. Within the meaning 
of the laws of the United States relating to venue in civil actions, 
the Commission is an inhabitant and resident of the District of 
Columbia and the eastern judicial district of Louisiana.". 
(b) CLERICAL AMENDMENT.—^The item relating to such section 
in ths table of contents in section 1 of such Act is amended to 
read as follows: 
"1101. Establishment, Purposes, Offices, and Residence of Commission.". 
SEC. 3523. SUPERVISORY BOARD. 
Section 1102 of the Panama Canal Act of 1979 (22 U.S.C. 
3612) is amended by striking out so much as precedes subsection 
(b) and inserting in lieu thereof the following: 
"SUPERVISORY BOARD 
"SEC 1102. (a) The Commission shall be supervised by a Board 
composed of nine members, one of whom shall be the Secretary 
of Defense or an officer of the Department of Defense designated 
by the Secretary. Not less than five members of the Board shall 
be nationals of the United States and the remaining members 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 639 
of the Board shall be nationals of the Republic of Panama. Three 
members of the Board who are nationals of the United States 
shall hold no other office in, and shall not be employed by, the 
Government of the United States, and shall be chosen for the 
independent perspective they can bring to the Commission's affairs. 
Members of the Board who are nationals of the United States 
shall cast their votes as directed by the Secretary of Defense or 
a designee of the Secretary of Defense.". 
SEC. 3524. GENERAL AND SPECIFIC POWERS OF COMMISSION. 
(a) IN GENERAL.—The Panama Canal Act of 1979 (22 U.S.C. 
3601 et seq.) is amended by inserting after section 1102 the follow-
ing new sections: 
"GENERAL POWERS OF COMMISSION 
"SEC. 1102a. (a) The Commission may adopt, alter, and use 22USC36i2a. 
a corporate seal, which shall be judicially noticed. 
"(b) The Commission may by action of the Board of Directors 
adopt, amend, and repeal bylaws governing the conduct of its gen-
eral business and the perforaiance of the powers and duties granted 
to or imposed upon it by law. 
"(c) The Commission may sue and be sued in its corporate 
name, except that— 
"(1) the amenability of the Commission to suit is limited 
by Article VIII of the Panama Canal Treaty of 1977, section 
1401 of this Act, and otherwise by law; 
"(2) an attachment, garnishment, or similar process may 
not be issued against salaries or other moneys owed by the 
Commission to its employees except as provided by section 
5520a of title 5, United States Code, and sections 459, 461, 
and 462 of the Social Security Act (42 U.S.C. 659, 661, 662), 
or as otherwise specifically authorized by the laws of the United 
States; and 
"(3) the Commission is exempt from the payment of interest 
on claims and judgments. 
"(d) The Commission may enter into contracts, leases, agree-
ments, or other transactions. 
"(e) The Commission— 
"(1) may determine the character of, and necessity for, 
its obligations and expenditures and the manner in which they 
shall be incurred, allowed, and paid; and 
"(2) may incur, allow, and pay its obligations and expendi-
tures, subject to pertinent provisions of law generally applicable 
to Government corporations. 
"(f) The Commission shall have the priority of the Government 
of the United States in the payment of debts out of bankrupt 
estates. 
"(g) The authority of the Commission under this section and 
section 1102B is subject to the Panama Canal Treaty of 1977 
and related agreements, and to chapter 91 of title 31, United 
States Code. 
"SPECIFIC POWERS OF COMMISSION 
"SEC. 1102b. (a) The Commission may manage, operate, and 
maintain the Panama Canal. 
"(b) The Commission may construct or acquire, establish, main-
tain, and operate such activities, facilities, and appurtenances as 
22 u s e 3612b. 
110 STAT. 640 
PUBLIC LAW 104-106—FEB. 10, 1996 
necessary and appropriate for the accomplishment of the purposes 
of this Act, including the following: 
"(1) Docks, wharves, piers, and other shoreline facilities. 
"(2) Shops and yards. 
"(3) Marine railways, salvage and towing facilities, fuel-
handling facilities, and motor transportation facilities. 
"(4) Power systems, water systems, and a telephone system. 
"(5) Construction facilities. 
"(6) Living quarters and other buildings. 
"(7) Warehouses, storehouses, a printing plant, and manu-
facturing, processing, or service facilities in connection there-
with. 
"(8) Recreational facilities. 
"(c) The Commission may use the United States mails in the 
same manner and under the same conditions as the executive 
departments of the Federal Government. 
"(d) The Commission may take such actions as are necessary 
or appropriate to carry out the powers specifically conferred upon 
it.". 
(b) CLERICAL AMENDMENT.—The table of contents in section 
1 of such Act is amended by inserting after the item relating 
to section 1102 the following new items: 
"1102a. General powers of Commission. 
"1102b. Specific powers of Commission.". 
SEC. 3525. CONGRESSIONAL REVIEW OF BUDGET. 
Section 1302 of the Panama Canal Act of 1979 (22 U.S.C. 
3712) is amended— 
(1) in subsection (c)— 
(A) by striking out "and subject to paragraph (2)" in 
paragraph (1); 
(B) by striking out paragraph (2); and 
(C) by redesignating paragraph (3) as paragraph (2); 
and 
(2) by striking out subsection (e) and inserting in lieu 
thereof the following new subsection (e): 
"(e) In accordance with section 9104 of title 31, United States 
Code, Congress shall review the annual budget of the Commission.". 
SEC. 3526. AUDITS. 
(a) IN GENERAL.—Section 1313 of the Panama Canal Act of 
1979 (22 U.S.C. 3723) is amended— 
(1) by striking out the heading for the section and inserting 
in lieu thereof the following: "AUDITS"; 
(2) in subsection (a)— 
(A) by striking out "Financial transactions" and insert-
ing in lieu thereof "Notwithstanding any other provision 
of law, and subject to subsection (d), financial transactions"; 
(B) by striking out "pursuant to the Accounting and 
Auditing Act of 1950 (31 U.S.C. 65 et seq.)"; 
(C) by striking out "audit pursuant to such Act" in 
the second sentence and inserting in lieu thereof "such 
audit"; 
(D) by striking out "An audit pursuant to such Act" 
in the last sentence and inserting in lieu thereof "Any 
such audit"; and 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 641 
(E) by adding at the end the following new sentence: 
"An audit performed under this section is subject to the 
requirements of paragraphs (2), (3), and (5) of section 
9105(a) of title 31, United States Code."; 
(3) in subsection (b), by striking out "The Comptroller 
Greneral" in the first sentence and inserting in lieu thereof 
"Subject to subsection (d), the Comptroller General"; and 
(4) by adding at the end the following new subsections: 
"(d) At the discretion of the Board provided for in section 
1102, the Commission may hire independent auditors to perform, 
in lieu of the Comptroller General, the audit and reporting functions 
prescribed in subsections (a) and (b). 
"(e) In addition to auditing the financial statements of the Reports. 
Commission, the Comptroller General (or the independent auditor 
if one is employed pursuant to subsection (d)) shall, in accordance 
with standards for an examination of a financial forecast established 
by the American Institute of Certified Public Accountants, examine 
and report on the Commission's financial forecast that it will be 
in a position to meet its financial liabilities on December 31, 1999.". 
(b) CLERICAL AMENDMENT.—The item relating to such section 
in the table of contents in section 1 of such Act is amended to 
read as follows: 
"1313. Audits.". 
SEC. 3527. PRESCRIPTION OF MEASUREMENT RULES AND RATES OF 
TOLLS. 
Section 1601 of the Panama Canal Act of 1979 (22 U.S.C. 
3791) is amended to read as follows: 
"PRESCRIPTION OF MEASUREMENT RULES AND RATES OF TOLLS 
"SEC. 1601. The Commission may, subject to the provisions 
of this Act, prescribe and from time to time change— 
"(1) the rules for the measurement of vessels for the Pan-
ama Canal; and 
"(2) the tolls that shall be levied for use of the Panama 
Canal.". 
SEC. 
3
5
2
8
. PROCEDURES 
FOR 
CHANGES 
IN 
RULES 
OF 
MEASUREMENT 
AND 
RATES 
OF 
TOLLS. 
Section 1604 of the Panama Canal Act of 1979 (22 U.S.C. 
3794) is amended— 
(1) in subsection (a), by striking out "1601(a)" in the first 
sentence and inserting in lieu thereof "1601"; 
(2) by striking out subsection (c) and inserting in lieu 
thereof the following new subsection (c): 
"(c) After the proceedings have been conducted pursuant to Federal Register, 
subsections (a) and (b), the Commission may change the rules publication. 
of measurement or rates of tolls, as the case may be. The Commis-
sion shall publish notice of any such change in the Federal Register 
not less than 30 days before the effective date of the change."; 
and 
(3) by striking out subsections (d) and (e) and redesignating 
subsection (f) as subsection (d). 
SEC. 3529. MISCELLANEOUS TECHNICAL AMENDMENTS. 
The Panama Canal Act of 1979 is amended— 
110 STAT. 642 
PUBLIC LAW 104-106—FEB. 10, 1996 
Federal 
Acquisition 
Reform Act of 
1996. 
Contracts. 
41 u s e 251 note. 
(1) in section 1205 (22 U.S.C. 3645), by striking out "appro-
priation" in the last sentence and inserting in lieu thereof 
"fund"; 
(2) in section 1303 (22 U.S.C. 3713), by striking out "The 
authority of this section may not be used for administrative 
expenses."; 
(3) in section 1321(d) (22 U.S.C. 3731(d)), by striking out 
"appropriations or" in the second sentence; 
(4) in section 1401(c) (22 U.S.C. 3761(c)), by striking out 
"appropriated for or" in the first sentence; 
(5) in section 1415 (22 U.S.C. 3775), by striking out "appro-
priated or" in the second sentence; and 
(6) in section 1416 (22 U.S.C. 3776), by striking out "appro-
priated or" in the third sentence. 
SEC. 3530. CONFORMING AMENDMENT TO TITLE 31, UNITED STATES 
CODE. 
Section 9101(3) of title 31, United States Code, is amended 
by adding at the end the following: 
"(P) the Panama Canal Commission.". 
DIVISION D—FEDERAL ACQUISITION 
REFORM 
SEC. 4001. SHORT TITLE. 
This division may be cited as the "Federal Acquisition Reform 
Act of 1996". 
TITLE XLI—COMPETITION 
SEC. 4101. EFFICIENT COMPETITION. 
(a) ARMED SERVICES ACQUISITIONS.—Section 2304 of title 10, 
United States Code, is amended— 
(1) by redesignating subsection (j) as subsection (k); and 
(2) by inserting after subsection (i) the following new sub-
section (j): 
"(j) The Federal Acquisition Regulation shall ensure that the 
requirement to obtain full and open competition is implemented 
in a manner that is consistent with the need to efficiently fulfill 
the Government's requirements.". 
(b) CIVILIAN AGENCY ACQUISITIONS.—Section 303 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253) 
is amended— 
(1) by redesignating subsection (h) as subsection (i); and 
(2) by inserting after subsection (g) the following new sub-
section (h): 
"(h) The Federal Acquisition Regulation shall ensure that the 
requirement to obtain full and open competition is implemented 
in a manner that is consistent with the need to efficiently fulfill 
the Government's requirements.". 
(c) REVISIONS TO NOTICE THRESHOLDS.—Section 18(a)(1)(B) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 416(a)(1)(B)) 
is amended— 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 643 
(A) by striking out "subsection (f)—" and all that follows 
through the end of the subparagraph and inserting in lieu 
thereof "subsection (b); and"; and 
(B) by inserting after "property or services" the following: 
"for a price expected to exceed $10,000, but not to exceed 
$25,000,". 
SEC. 4102. EFFICIENT APPROVAL PROCEDURES. 
(a) ARMED SERVICES ACQUISITIONS.—Section 2304(f)(1)(B) of 
title 10, United States Code, is amended— 
(1) in clause (i)— 
(A) by striking out "$100,000 (but equal to or less 
than $1,000,000)" and inserting in heu thereof "$500,000 
(but equal to or less than $10,000,000)"; and 
(B) by striking out "(ii), (iii), or (iv)" and inserting 
in lieu thereof "(ii) or (iii)"; 
(2) in clause (ii)— 
(A) by striking out "$1,000,000 (but equal to or less 
than 
$10,000,000)" 
and 
inserting 
in 
heu 
thereof 
"$10,000,000 (but equal to or less than $50,000,000)"; and 
(B) by adding "or" at the end; 
(3) by striking out clause (iii); and 
(4) by redesignating clause (iv) as clause (iii). 
(b) CIVILIAN AGENCY ACQUISITIONS.—Section 303(f)(1)(B) of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253(f)( 1)(B)) is amended— 
(1) in clause (i)— 
(A) by striking out "$100,000 (but equal to or less 
than $1,000,000)" and inserting in heu thereof "$500,000 
(but equal to or less than $10,000,000)"; and 
(B) by striking out "(ii), (iii), or (iv);" and inserting 
in lieu thereof "(ii) or (iii); and"; 
(2) in clause (ii)— 
(A) by striking out "$1,000,000 (but equal to or less 
than 
$10,000,000)" 
and 
inserting 
in 
heu 
thereof 
"$10,000,000 (but equal to or less than $50,000,000)"; and 
(B) by striking out the semicolon after "civilian" and 
inserting in lieu thereof a comma; and 
(3) in clause (iii), by striking out "$10,000,000" and insert-
ing in lieu thereof "$50,000,000". 
SEC. 4103. EFFICIENT COMPETITIVE RANGE DETERMINATIONS. 
(a) ARMED SERVICES ACQUISITIONS.—Paragraph (4) of 2305(b) 
of title 10, United States Code, is amended— 
(1) in subparagraph (C), by striking out "(C)", by transfer-
ring the text to the end of subparagraph (B), and in that 
text by striking out "Subparagraph (B)" and inserting in lieu 
thereof "This subparagraph"; 
(2) by redesignating subparagraph (B) as subparagraph 
(C); and 
(3) by inserting before subparagraph (C) (as so redesig-
nated) the following new subparagraph (B): 
"(B) If the contracting officer determines that the number of 
offerors that would otherwise be included in the competitive range 
under subparagraph (A)(i) exceeds the number at which an efficient 
competition can be conducted, the contracting officer may limit 
the number of proposals in the competitive range, in accordance 
with the criteria specified in the solicitation, to the greatest number 
110 STAT. 644 
PUBLIC LAW 104-106—FEB. 10, 1996 
that will permit an efficient competition among the offerors rated 
most highly in accordance with such criteria.". 
(b) CIVILIAN AGENCY ACQUISITIONS.—Section 303B(d) of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253b(d)) is amended— 
(1) by redesignating paragraph (2) as paragraph (3); and 
(2) by inserting before paragraph (3) (as so redesignated) 
the following new paragraph (2): 
"(2) If the contracting officer determines that the number of 
offerors that would otherwise be included in the competitive range 
under paragraph (1)(A) exceeds the number at which an efficient 
competition can be conducted, the contracting officer may limit 
the number of proposals in the competitive range, in accordance 
with the criteria specified in the solicitation, to the greatest number 
that will permit an efficient competition among the offerors rated 
most highly in accordance with such criteria.". 
SEC. 4104. PREAWARD DEBREEFINGS. 
(a) ARMED SERVICES ACQUISITIONS.—Section 2305(b) of title 
10, United States Code, is amended— 
(1) by striking out subparagraph (F) of paragraph (5); 
(2) by redesignating paragraph (6) as paragraph (9); and 
(3) by inserting after paragraph (5) the following new 
paragraphs: 
"(6)(A) When the contracting officer excludes an offeror submit-
ting a competitive proposal from the competitive range (or otherwise 
excludes such an offeror from further consideration prior to the 
final source selection decision), the excluded offeror may request 
in writing, within three days after the date on which the excluded 
offeror receives notice of its exclusion, a debriefing prior to award. 
The contracting officer shall make every effort to debrief the 
unsuccessful offeror as soon as practicable but may refuse the 
request for a debriefing if it is not in the best interests of the 
Government to conduct a debriefing at that time. 
"(B) The contracting officer is required to debrief an excluded 
offeror in accordance with paragraph (5) of this section only if 
that offeror requested and was refused a preaward debriefing under 
subparagraph (A) of this paragraph. 
"(C) The debriefing conducted under this subsection shall 
include— 
"(i) the executive agency's evaluation of the significant 
elements in the offeror's offer; 
"(ii) a summary of the rationale for the offeror's exclusion; 
and 
"(iii) reasonable responses to relevant questions posed by 
the debriefed offeror as to whether source selection procedures 
set forth in the solicitation, applicable regulations, and other 
applicable authorities were followed by the executive agency. 
"(D) The debriefing conducted pursuant to this subsection may 
not disclose the number or identity of other offerors and shall 
not disclose information about the content, ranking, or evaluation 
of other offerors' proposals. 
"(7) The contracting officer shall include a summary of any 
debriefing conducted under paragraph (5) or (6) in the contract 
file. 
"(8) The Federal Acquisition Regulation shall include a provi-
sion encouraging the use of alternative dispute resolution tech-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 645 
niques to provide informal, expeditious, and inexpensive procedures 
for an offeror to consider using before filing a protest, prior to 
the award of a contract, of the exclusion of the offeror from the 
competitive range (or otherwise from further consideration) for that 
contract.". 
(b) CIVILIAN AGENCY ACQUISITIONS.—Section 303B of the Fed-
eral Property and Administrative Services Act of 1949 (41 U.S.C. 
253b) is amended— 
(1) by striking out paragraph (6) of subsection (e); 
(2) by redesignating subsections if), (g), (h), and (i) as 
subsections (i), (j), (k), and (1), respectively; and 
(3) by inserting after subsection (e) the following new 
subsections: 
"(f)(1) When the contracting officer excludes an offeror submit-
ting a competitive proposal from the competitive range (or otherwise 
excludes such an offeror from further consideration prior to the 
final source selection decision), the excluded offeror may request 
in writing, within 3 days after the date on which the excluded 
offeror receives notice of its exclusion, a debriefing prior to award. 
The contracting officer shall make every effort to debrief the 
unsuccessful offeror as soon as practicable but may refuse the 
request for a debriefing if it is not in the best interests of the 
Government to conduct a debriefing at that time. 
"(2) The contracting officer is required to debrief an excluded 
offeror in accordance with subsection (e) of this section only if 
that offeror requested and was refused a preaward debriefing under 
paragraph (1) of this subsection. 
"(3) The debriefing conducted under this subsection shall 
include— 
"(A) the executive agency's evaluation of the significant 
elements in the offeror's offer; 
"(B) a summary of the rationale for the offeror's exclusion; 
and 
"(C) reasonable responses to relevant questions posed by 
the debriefed offeror as to whether source selection procedures 
set forth in the solicitation, applicable regulations, and other 
applicable authorities were followed by the executive agency. 
"(4) The debriefing conducted pursuant to this subsection may 
not disclose the number or identity of other offerors and shall 
not disclose information about the content, ranking, or evaluation 
of other offerors' proposals. 
"(g) The contracting officer shall include a summary of any 
debriefing conducted under subsection (e) or (f) in the contract 
file. 
"(h) The Federal Acquisition Regulation shall include a provi-
sion encouraging the use of alternative dispute resolution tech-
niques to provide informal, expeditious, and inexpensive procedures 
for an offeror to consider using before filing a protest, prior to 
the award of a contract, of the exclusion of the offeror from the 
competitive range (or otherwise from further consideration) for that 
contract.". 
SEC. 4105. DESIGN-BUILD SELECTION PROCEDURES. 
(a) ARMED SERVICES ACQUISITIONS.—(1) Chapter 137 of title 
10, United States Code, is amended by inserting after section 2305 
the following new section: 
110 STAT. 646 
PUBLIC LAW 104-106—FEB. 10, 1996 
"§ 2305a. Design-build selection procedures 
"(a) 
AUTHORIZATION.—Unless 
the 
traditional 
acquisition 
approach of design-bid-build established under the Brooks Architect-
Engineers Act (41 U.S.C. 541 et seq.) is used or another acquisition 
procedure authorized by law is used, the head of an agency shall 
use the two-phase selection procedures authorized in this section 
for entering into a contract for the design and construction of 
a public building, facility, or work when a determination is made 
under subsection (b) that the procedures are appropriate for use. 
"(b) CRITERIA FOR USE.—A contracting officer shall make a 
determination whether two-phase selection procedures are appro-
priate for use for entering into a contract for the design and 
construction of a public building, facility, or work when the contract-
ing officer anticipates that three or more offers will be received 
for such contract, design work must be performed before an offeror 
can develop a price or cost proposal for such contract, the offeror 
will incur a substantial amount of expense in preparing the offer, 
and the contracting officer has considered information such as the 
following: 
"(1) The extent to which the project requirements have 
been adequately defined. 
"(2) The time constraints for delivery of the project. 
"(3) The capability and experience of potential contractors. 
"(4) The suitability of the project for use of the two-phase 
selection procedures. 
"(5) The capability of the agency to manage the two-phase 
selection process. 
"(6) Other criteria established by the agency. 
"(c) PROCEDURES DESCRIBED.—Two-phase selection procedures 
consist of the following: 
"(1) The agency develops, either in-house or by contract, 
a scope of work statement for inclusion in the solicitation 
that defines the project and provides prospective offerors with 
sufficient information regarding the Government's require-
ments (which may include criteria and preliminary design, 
budget parameters, and schedule or delivery requirements) to 
enable the offerors to submit proposals which meet the Govern-
ment's needs. If the agency contracts for development of the 
scope of work statement, the agency shall contract for architec-
tural and engineering services as defined by and in accordance 
with the Brooks Architect-Engineers Act (40 U.S.C. 541 et 
seq.). 
"(2) The contracting officer solicits phase-one proposals 
that— 
"(A) include information on the offeror's— 
"(i) technical approach; and 
"(ii) technical qualifications; and 
"(B) do not include— 
"(i) detailed design information; or 
"(ii) cost or price information. 
"(3) The evaluation factors to be used in evaluating phase-
one proposals are stated in the solicitation and include special-
ized experience and technical competence, capability to perform, 
past performance of the offeror's team (including the architect-
engineer and construction members of the team) and other 
appropriate factors, except that cost-related or price-related 
evaluation factors are not permitted. Each solicitation estab-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 647 
lishes the relative importance assigned to the evaluation factors 
and subfactors that must be considered in the evaluation of 
phase-one proposals. The agency evaluates phase-one proposals 
on the basis of the phase-one evaluation factors set forth in 
the solicitation. 
"(4) The contracting officer selects as the most highly quali-
fied the number of offerors specified in the solicitation to pro-
vide the property or services under the contract and requests 
the selected offerors to submit phase-two competitive proposals 
that include technical proposals and cost or price information. 
Each solicitation establishes with respect to phase two— 
"(A) the technical submission for the proposal, includ-
ing design concepts or proposed solutions to requirements 
addressed within the scope of work (or both), and 
"(B) the evaluation factors and subfactors, including 
cost or price, that must be considered in the evaluations 
of proposals in accordance with paragraphs (2), (3), and 
(4) of section 2305(a) of this title. 
The contracting officer separately evaluates the submissions 
described in subparagraphs (A) and (B). 
"(5) The agency awards the contract in accordance with 
section 2305(b)(4) of this title. 
"(d) 
SOLICITATION TO STATE NUMBER OF OFFERORS TO BE 
SELECTED FOR PHASE TWO REQUESTS FOR COMPETITIVE PROPOS-
ALS.—^A solicitation issued pursuant to the procedures described 
in subsection (c) shall state the maximum number of offerors that 
are to be selected to submit competitive proposals pursuant to 
subsection (c)(4). The maximum number specified in the solicitation 
shall not exceed 5 unless the agency determines with respect to 
an individual solicitation that a specified number greater than 
5 is in the Government's interest and is consistent with the purposes 
and objectives of the two-phase selection process. 
"(e) REQUIREMENT FOR GUIDANCE AND REGULATIONS.—The Fed-
eral Acquisition Regulation shall include guidance— 
"(1) regarding the factors that may be considered in deter-
mining whether the two-phase contracting procedures author-
ized by subsection (a) are appropriate for use in individual 
contracting situations; 
"(2) regarding the factors that may be used in selecting 
contractors; and 
"(3) providing for a uniform approach to be used Govern-
ment-wide.". 
(2) The table of sections at the beginning of chapter 137 of 
such title is amended by adding after the item relating to section 
2305 the following new item: 
"2305a. Design-build selection procedures.". 
(b) CIVILIAN AGENCY ACQUISITIONS.—(1) Title III of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 251 
et seq.) is amended by inserting after section 303L the following 
new section: 
"SEC. 303M. DESIGN-BUILD SELECTION PROCEDURES. 
41 USC 253m. 
"(a) 
AUTHORIZATION.—Unless 
the 
traditional 
acquisition 
approach of design-bid-build established under the Brooks Architect-
Engineers Act (title IX of this Act) is used or another acquisition 
procedure authorized by law is used, the head of an executive 
agency shall use the two-phase selection procedures authorized 
110 STAT. 648 
PUBLIC LAW 104-106—FEB. 10, 1996 
in this section for entering into a contract for the design and 
construction of a public building, facility, or work when a determina-
tion is made under subsection (b) that the procedures are appro-
priate for use. 
"(b) CRITERIA FOR USE.—A contracting officer shall make a 
determination whether two-phase selection procedures are appro-
priate for use for entering into a contract for the design and 
construction of a public building, facility, or work when the contract-
ing officer anticipates that three or more offers will be received 
for such contract, design work must be performed before an offeror 
can develop a price or cost proposal for such contract, the offeror 
will incur a substantial amount of expense in preparing the offer, 
and the contracting officer has considered information such as the 
following: 
"(1) The extent to which the project requirements have 
been adequately defined. 
"(2) The time constraints for delivery of the project. 
"(3) The capability and experience of potential contractors. 
"(4) The suitability of the project for use of the two-phase 
selection procedures. 
"(5) The capability of the agency to manage the two-phase 
selection process. 
"(6) Other criteria established by the agency. 
"(c) PROCEDURES DESCRIBED.—^Two-phase selection procedures 
consist of the following: 
"(1) The agency develops, either in-house or by contract, 
a scope of work statement for inclusion in the solicitation 
that defines the project and provides prospective offerors with 
sufficient information regarding the Government's require-
ments (which may include criteria and preliminary design, 
budget parameters, and schedule or delivery requirements) to 
enable the offerors to submit proposals which meet the Govern-
ment's needs. If the agency contracts for development of the 
scope of work statement, the agency shall contract for architec-
tural and engineering services as defined by and in accordance 
with the Brooks Architect-Engineers Act (40 U.S.C. 541 et 
seq.). 
"(2) The contracting officer solicits phase-one proposals 
that— 
"(A) include information on the offeror's— 
"(i) technical approach; and 
"(ii) technical qualifications; and 
"(B) do not include— 
"(i) detailed design information; or 
"(ii) cost or price information. 
"(3) The evaluation factors to be used in evaluating phase-
one proposals are stated in the solicitation and include special-
ized experience and technical competence, capability to perform, 
past performance of the offeror's team (including the architect-
engineer and construction members of the team) and other 
appropriate factors, except that cost-related or price-related 
evaluation factors are not permitted. Each solicitation estab-
lishes the relative importance assigned to the evaluation factors 
and subfactors that must be considered in the evaluation of 
phase-one proposals. The agency evaluates phase-one proposals 
on the basis of the phase-one evaluation factors set forth in 
the solicitation. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 649 
"(4) The contracting officer selects as the most highly quali-
fied the number of offerors specified in the solicitation to pro-
vide the property or services under the contract and requests 
the selected offerors to submit phase-two competitive proposals 
that include technical proposals and cost or price information. 
Each solicitation establishes with respect to phase two— 
"(A) the technical submission for the proposal, includ-
ing design concepts or proposed solutions to requirements 
addressed within the scope of work (or both), and 
"(B) the evaluation factors and subfactors, including 
cost or price, that must be considered in the evaluations 
of proposals in accordance with subsections (b), (c), and 
(d) of section 303A. 
The contracting officer separately evaluates the submissions 
described in subparagraphs (A) and (B). 
"(5) The agency awards the contract in accordance with 
section 303B of this title. 
"(d) 
SOLICITATION TO STATE NUMBER OF OFFERORS TO BE 
SELECTED FOR PHASE TWO REQUESTS FOR COMPETITIVE PROPOS-
ALS.—^A solicitation issued pursuant to the procedures described 
in subsection (c) shall state the maximum number of offerors that 
are to be selected to submit competitive proposals pursuant to 
subsection (c)(4). The maximum number specified in the solicitation 
shall not exceed 5 unless the agency determines with respect to 
an individual solicitation that a specified number greater than 
5 is in the Government's interest and is consistent with the purposes 
and objectives of the two-phase selection process. 
"(e) REQUIREMENT FOR GUIDANCE AND REGULATIONS.—The Fed-
eral Acquisition Regulation shall include guidance— 
"(1) regarding the factors that may be considered in deter-
mining whether the two-phase contracting procedures author-
ized by subsection (a) are appropriate for use in individual 
contracting situations; 
"(2) regarding the factors that may be used in selecting 
contractors; and 
"(3) providing for a uniform approach to be used Govern-
ment-wide.". 
(2) The table of sections at the beginning of such Act is amended 
by inserting after the item relating to section 303L the following 
new item: 
"Sec. 303M. Design-build selection procedures.". 
TITLE XLII—COMMERCIAL ITEMS 
SEC. 4201. COMMERCIAl. ITEM EXCEPTION TO REQUIREMENT FOR 
CERTIFIED COST OR PRICING DATA. 
(a) ARMED SERVICES ACQUISITIONS.—(1) Subsections (b), (c), 
and (d) of section 2306a of title 10, United States Code, are amended 
to read as follows: 
"(b) EXCEPTIONS.— 
"(1) IN GENERAL.—Submission of certified cost or pricing 
data shall not be required under subsection (a) in the case 
of a contract, a subcontract, or modification of a contract or 
subcontract— 
"(A) for which the price agreed upon is based on— 
"(i) adequate price competition; or 
29-194 O - 96 - 22 : QL 3 Part 1 
110 STAT. 650 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(ii) prices set by law or regulation; 
"(B) for the acquisition of a commercial item; or 
"(C) in an exceptional case when the head of the procur-
ing activity, without delegation, determines that the 
requirements of this section may be waived and justifies 
in writing the reasons for such determination. 
"(2) MODIFICATIONS OF CONTRACTS AND SUBCONTRACTS FOR 
COMMERCIAL ITEMS.—In the case of a modification of a contract 
or subcontract for a commercial item that is not covered by 
the exception to the submission of certified cost or pricing 
data in paragraph (1)(A) or (1)(B), submission of certified cost 
or pricing data shall not be required under subsection (a) if— 
"(A) the contract or subcontract being modified is a 
contract or subcontract for which submission of certified 
cost or pricing data may not be required by reason of 
paragraph (1)(A) or (1)(B); and 
"(B) the modification would not change the contract 
or subcontract, as the case may be, from a contract or 
subcontract for the acquisition of a commercial item to 
a contract or subcontract for the acquisition of an item 
other than a commercial item. 
"(c) 
COST 
OR 
PRICING 
DATA 
ON 
BELOW-THRESHOLD 
CONTRACTS.— 
"(1) AUTHORITY TO REQUIRE SUBMISSION.—Subject to para-
graph (2), when certified cost or pricing data are not required 
to be submitted by subsection (a) for a contract, subcontract, 
or modification of a contract or subcontract, such data may 
nevertheless be required to be submitted by the head of the 
procuring activity, but only if the head of the procuring activity 
determines that such data are necessary for the evaluation 
by the agency of the reasonableness of the price of the contract, 
subcontract, or modification of a contract or subcontract. In 
any case in which the head of the procuring activity requires 
such data to be submitted under this subsection, the head 
of the procuring activity shall justify in writing the reason 
for such requirement. 
"(2) EXCEPTION.—^The head of the procuring activity may 
not require certified cost or pricing data to be submitted under 
this paragraph for any contract or subcontract, or modification 
of a contract or subcontract, covered by the exceptions in 
subparagraph (A) or (B) of subsection (b)(1). 
"(3) DELEGATION OF AUTHORITY PROHIBITED.—The head of 
a procuring activity may not delegate functions under this 
paragraph. 
"(d) SUBMISSION OF OTHER INFORMATION.— 
"(1) AUTHORITY TO REQUIRE SUBMISSION.—When certified 
cost or pricing data are not required to be submitted under 
this section for a contract, subcontract, or modification of a 
contract or subcontract, the contracting officer shall require 
submission of data other than certified cost or pricing data 
to the extent necessary to determine the reasonableness of 
the price of the contract, subcontract, or modification of the 
contract or subcontract. Except in the case of a contract or 
subcontract covered by the exceptions in subsection (b)(1)(A), 
the data submitted shall include, at a minimum, appropriate 
information on the prices at which the same item or similar 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 651 
items have previously been sold that is adequate for evaluating 
the reasonableness of the price for the procurement. 
"(2) LIMITATIONS ON AUTHORITY.—The Federal Acquisition 
Regulation shall include the following provisions regarding the 
types of information that contracting officers may require under 
paragraph (1): 
"(A) Reasonable limitations on requests for sales data 
relating to commercial items. 
"(B) A requirement that a contracting officer limit, 
to the maximum extent practicable, the scope of any 
request for information relating to commercial items from 
an offeror to only that information that is in the form 
regularly 
maintained 
by 
the 
offeror 
in 
commercial 
operations. 
"(C) A statement that any information received relating 
to commercial items that is exempt from disclosure under 
section 552(b) of title 5 shall not be disclosed by the Federal 
Government.". 
(2) Section 2306a of such title is further amended— 
(A) by striking out subsection (h); and 
(B) by redesignating subsection (i) as subsection (h). 
(b) CIVILIAN AGENCY ACQUISITIONS.—(1) Subsections (b), (c) 
and (d) of section 304A of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 254b) are amended to read as 
follows: 
"(b) EXCEPTIONS.— 
"(1) IN GENERAL.—Submission of certified cost or pricing 
data shall not be required under subsection (a) in the case 
of a contract, a subcontract, or a modification of a contract 
or subcontract— 
"(A) for which the price agreed upon is based on— 
"(i) adequate price competition; or 
"(ii) prices set by law or regulation; 
"(B) for the acquisition of a commercial item; or 
"(C) in an exceptional case when the head of the procur-
ing activity, without delegation, determines that the 
requirements of this section may be waived and justifies 
in writing the reasons for such determination. 
"(2) MODIFICATIONS OF CONTRACTS AND SUBCONTRACTS FOR 
COMMERCIAL ITEMS.—In the case of a modification of a contract 
or subcontract for a commercial item that is not covered by 
the exception to the submission of certified cost or pricing 
data in paragraph (1)(A) or (1)(B), submission of certified cost 
or pricing data shall not be required under subsection (a) i
f
— 
"(A) the contract or subcontract being modified is a 
contract or subcontract for which submission of certified 
cost or pricing data may not be required by reason of 
paragraph (1)(A) or (1)(B); and 
"(B) the modification would not change the contract 
or subcontract, as the case may be, from a contract or 
subcontract for the acquisition of a commercial item to 
a contract or subcontract for the acquisition of an item 
other than a commercial item. 
"(c) 
COST 
OR PRICING 
DATA ON BELOW-THRESHOLD 
CON-
TRACTS.— 
"(1) AUTHORITY TO REQUIRE SUBMISSION.—Subject to para-
graph (2), when certified cost or pricing data are not required 
110 STAT. 652 
PUBLIC LAW 104-106—FEB. 10, 1996 
to be submitted by subsection (a) for a contract, subcontract, 
or modification of a contract or subcontract, such data may 
nevertheless be required to be submitted by the head of the 
procuring activity, but only if the head of the procuring activity 
determines that such data are necessary for the evaluation 
by the agency of the reasonableness of the price of the contract, 
subcontract, or modification of a contract or subcontract. In 
any case in which the head of the procuring activity requires 
such data to be submitted under this subsection, the head 
of the procuring activity shall justify in writing the reason 
for such requirement. 
"(2) EXCEPTION.—^The head of the procuring activity may 
not require certified cost or pricing data to be submitted under 
this paragraph for any contract or subcontract, or modification 
of a contract or subcontract, covered by the exceptions in 
subparagraph (A) or (B) of subsection (b)( 1). 
"(3) DELEGATION OF AUTHORITY PROHIBITED.—The head of 
a procuring activity may not delegate the functions under this 
paragraph. 
"(d) SUBMISSION OF OTHER INFORMATION.— 
"(1) AUTHORITY TO REQUIRE SUBMISSION.—When certified 
cost or pricing data are not required to be submitted under 
this section for a contract, subcontract, or modification of a 
contract or subcontract, the contracting officer shall require 
submission of data other than certified cost or pricing data 
to the extent necessary to determine the reasonableness of 
the price of the contract, subcontract, or modification of the 
contract or subcontract. Except in the case of a contract or 
subcontract covered by the exceptions in subsection (b)(1)(A), 
the data submitted shall include, at a minimum, appropriate 
information on the prices at which the same item or similar 
items have previously been sold that is adequate for evaluating 
the reasonableness of the price for the procurement. 
"(2) LIMITATIONS ON AUTHORITY.—^The Federal Acquisition 
Regulation shall include the following provisions regarding the 
types of information that contracting officers may require under 
paragraph (1): 
"(A) Reasonable limitations on requests for sales data 
relating to commercial items. 
"(B) A requirement that a contracting officer limit, 
to the maximum extent practicable, the scope of any 
request for information relating to commercial items from 
an offeror to only that information that is in the form 
regularly 
maintained by the offeror 
in commercial 
operations. 
"(C) A statement that any information received relating 
to commercial items that is exempt from disclosure under 
section 552(b) of title 5 shall not be disclosed by the Federal 
Government.". 
(2) Section 304A of such Act is further amended— 
(A) by striking out subsection (h); and 
(B) by redesignating subsection (i) as subsection (h). 
SEC. 4202. APPLICATION OF SIMPLIFIED PROCEDURES TO CERTAIN 
COMMERCIAL ITEMS. 
(a) ARMED SERVICES ACQUISITIONS.—(1) Section 2304(g) of title 
10, United States Code, is amended— 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 653 
(A) in paragraph (1), by striking out "shall provide for 
special simplified procedures for purchases of and all that 
follows through the end of the paragraph and inserting in 
lieu thereof the following: "shall provide for— 
"(A) special simplified procedures for purchases of property 
and services for amounts not greater than the simplified 
acquisition threshold; and 
"(B) special simplified procedures for purchases of property 
and services for amounts greater than the simplified acquisition 
threshold but not greater than $5,000,000 with respect to which 
the contracting officer reasonably expects, based on the nature 
of the property or services sought and on market research, 
that offers will include only commercial items."; and 
(B) by adding at the end the following new paragraph: 
"(4) The head of an agency shall comply with the Federal 
Acquisition Regulation provisions referred to in section 31(g) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 427).". 
(2) Section 2305 of title 10, United States Code, is amended 
in subsection (a)(2) by inserting after "(other than for" the following: 
"a procurement for commercial items using special simplified proce-
dures or". 
(b) CIVILIAN AGENCY ACQUISITIONS.—(1) Section 303(g) of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253(g)) is amended— 
(A) in paragraph (1), by striking out "shall provide for 
special simplified procedures for purchases of and all that 
follows through the end of the paragraph and inserting in 
lieu thereof the following: "shall provide for— 
"(A) special simplified procedures for purchases of property 
and services for amounts not greater than the simplified 
acquisition threshold; and 
"(B) special simplified procedures for purchases of property 
and services for amounts greater than the simplified acquisition 
threshold but not greater than $5,000,000 with respect to which 
the contracting officer reasonably expects, based on the nature 
of the property or services sought and on market research, 
that offers will include only commercial items."; and 
(B) by adding at the end the following new paragraph: 
"(5) An executive agency shall comply with the Federal Acquisi-
tion Regulation provisions referred to in section 31(g) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 427).". 
(2) Section 303A of such Act (41 U.S.C. 253a) is amended 
in subsection (b) by inserting after "(other than for" the following: 
"a procurement for commercial items using special simplified proce-
dures or". 
(c) ACQUISITIONS GENERALLY.—Section 31 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 427) is amended— 
(1) in subsection (a), by striking out "shall provide for 
special simplified procedures for purchases of and all that 
follows through the end of the subsection and inserting in 
lieu thereof the following: "shall provide for— 
"(1) special simplified procedures for purchases of property 
and services for amounts not greater than the simplified 
acquisition threshold; and 
"(2) special simplified procedures for purchases of property 
and services for amounts greater than the simplified acquisition 
threshold but not greater than $5,000,000 with respect to which 
110 STAT. 654 
PUBLIC LAW 104-106—FEB. 10, 1996 
Notice. 
Publication. 
10 use 2304 
note. 
41 use 431. 
the contracting officer reasonably expects, based on the nature 
of the property or services sought and on market research, 
that offers will include only commercial items."; and 
(2) by adding at the end the following new subsection: 
"(g) SPECIAL RULES FOR COMMERCIAL ITEMS.—^The Federal 
Acquisition Regulation shall provide that, in the case of a purchase 
of commercial items using special simplified procedures, an execu-
tive agency— 
"(1) shall publish a notice in accordance with section 18 
and, as provided in subsection (b)(4) of such section, permit 
all responsible sources to submit a bid, proposal, or quotation 
(as appropriate) which shall be considered by the agency; 
"(2) may not conduct the purchase on a sole source basis 
unless the need to do so is justified in writing and approved 
in accordance with section 2304 of title 10, United States Code, 
or section 303 of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253), as applicable; and 
"(3) shall include in the contract file a written description 
of the procedures used in awarding the contract and the number 
of offers received.". 
(d) SIMPLIFIED NOTICE.—(1) Section 18 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 416) is amended— 
(A) in subsection (a)(6), by inserting before "submission" 
the following: "issuance of solicitations and the"; and 
(B) in subsection (b)(6), by striking out "threshold—" £ind 
inserting in lieu thereof "threshold, or a contract for the 
procurement of commercial items using special simplified 
procedures—". 
(e) EFFECTIVE DATE.—^The authority to issue solicitations for 
purchases of commercial items in excess of the simplified acquisition 
threshold pursuant to the special simplified procedures authorized 
by section 2304(g)(1) of title 10, United States Code, section 
303(g)(1) of the Federal Property and Administrative Services Act 
of 1949, and section 31(a) of the Office of Federal Procurement 
Policy Act, as amended by this section, shall expire three years 
after the date on which such amendments take effect pursuant 
to section 4401(b). Contracts may be awarded pursuant to solicita-
tions that have been issued before such authority expires, notwith-
standing the expiration of such authority. 
SEC. 4203. INAPPLICABILITY OF CERTAIN PROCUREMENT LAWS TO 
COMMERCIALLY AVAILABLE OFF-THE-SHELF ITEMS. 
(a) LAWS LISTED IN THE FAR.—^The Office of Federal Procure-
ment Policy Act (41 U.S.C. 401 et seq.) is amended by adding 
at the end the following: 
"SEC. 35. COMMERCIALLY AVAILABLE OFF-THE-SHELF ITEM ACQUISI-
TIONS: USTS OF INAPPLICABLE 
LAWS IN FEDERAL 
ACQUISITION REGULATION. 
"(a) LISTS OF INAPPLICABLE PROVISIONS OF LAW.—(1) The Fed-
eral Acquisition Regulation shall include a list of provisions of 
law that are inapplicable to contracts for the procurement of 
commercially available off-the-shelf items. 
"(2) A provision of law that, pursuant to paragraph (3), is 
properly included on a list referred to in paragraph (1) may not 
be construed as being applicable to contracts referred to in para-
graph (1). Nothing in this section shall be construed to render 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 655 
inapplicable to such contracts any provision of law that is not 
included on such list. 
"(3) A provision of law described in subsection (b) shall be 
included on the list of inapplicable provisions of law required by 
paragraph (1) unless the Administrator for Federal Procurement 
Policy makes a written determination that it would not be in 
the best interest of the United States to exempt such contracts 
from the applicability of that provision of law. Nothing in this 
section shall be construed as modifying or superseding, or as being 
intended to impair or restrict authorities or responsibilities under— 
"(A) section 15 of the Small Business Act (15 U.S.C. 644); 
or 
"(B) bid protest procedures developed under the authority 
of subchapter V of chapter 35 of title 31, United States Code; 
subsections (e) and (f) of section 2305 of title 10, United States 
Code; or subsections (h) and (i) of section 303B of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 
253b). 
"(b) COVERED LAW.—Except as provided in subsection (a)(3), 
the list referred to in subsection (a)(1) shall include each provision 
of law that, as determined by the Administrator, imposes on persons 
who have been awarded contracts by the Federal Government for 
the procurement of commercially available off-the-shelf 
items 
Government-unique policies, procedures, requirements, or restric-
tions for the procurement of property or services, except the 
following: 
"(1) A provision of law that provides for criminal or civil 
penalties. 
"(2) A provision of law that specifically refers to this section 
and provides that, notwithstanding this section, such provision 
of law shall be applicable to contracts for the procurement 
of commercial off-the-shelf items. 
"(c) DEFINITION.—(1) As used in this section, the term 'commer-
cially available off-the-shelf item' means, except as provided in 
paragraph (2), an item that— 
"(A) is a commercial item (as described in section 4(12)(A)); 
"(B) is sold in substantial quantities in the commercial 
marketplace; and 
"(C) is offered to the Government, without modification, 
in the same form in which it is sold in the commercial 
marketplace. 
"(2) The term 'commercially available off-the-shelf item' does 
not include bulk cargo, as defined in section 3 of the Shipping 
Act of 1984 (46 U.S.C. App. 1702), such as agricultural products 
and petroleum products.". 
(b) CLERICAL AMENDMENT.—The table of contents in section 
Kb) of such Act is amended by inserting after the item relating 
to section 34 the following: 
"Sec. 35. Commercially available off-the-shelf item acquisitions: lists of inapplicable 
laws in Federal Acqmsition Regulation.". 
SEC. 4204. AMENDMENT OF COMMERCIAL ITEMS DEFINITION. 
Section 4(12)(F) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403(12)(F)) is amended by inserting "or market" 
after "catalog". 
110 STAT. 656 
PUBLIC LAW 104-106—FEB. 10, 1996 
SEC. 4205. INAPPUCABILITY OF COST ACCOUNTING STANDARDS TO 
CONTRACTS AND SUBCONTRACTS FOR COMMERCIAL 
ITEMS. 
Paragraph (2)(B) of section 26(f) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 422(f)) is amended— 
(1) by striking out clause (i) and inserting in lieu thereof 
the following: 
"(i) Contracts or subcontracts for the acquisition of commer-
cial items."; and 
(2) by striking out clause (iii). 
TITLE XLIII—ADDITIONAL REFORM 
PROVISIONS 
Subtitle A—^Additional Acquisition Reform 
Provisions 
SEC. 4301. ELIMINATION OF CERTAIN CERTIFICATION REQUIREMENTS. 
(a) 
ELIMINATION 
OF 
CERTAIN 
STATUTORY 
CERTIFICATION 
REQUIREMENTS.—(1) Section 2410b of title 10, United States Code, 
is amended in paragraph (2) by striking out "certification and". 
(2) Section 1352(b)(2) of title 31, United States Code, is 
amended— 
(A) by striking out subparagraph (C); and 
(B) by inserting "and" after the semicolon at the end of 
subparagraph (A). 
(3) Section 5152 of the Drug-Free Workplace Act of 1988 (41 
U.S.C. 701) is amended— 
(A) in subsection (a)(1), by striking out "has certified to 
the contracting agency that it will" and inserting in lieu thereof 
"agrees to"; 
(B) in subsection (a)(2), by striking out "contract includes 
a certification by the individual" and inserting in lieu thereof 
"individual agrees"; and 
(C) in subsection (b)( 1)— 
(i) by striking out subparagraph (A); 
(ii) by redesignating subparagraph (B) as subparagraph 
(A) and in that subparagraph by striking out "such certifi-
cation by failing to carry out"; and 
(iii) by redesignating subparagraph (C) as subpara-
graph (B). 
(b) 
ELIMINATION OF 
CERTAIN REGULATORY CERTIFICATION 
REQUIREMENTS.— 
PubUc comment. 
(1) CURRENT CERTIFICATION REQUIREMENTS.—(A) N o t later 
41 use 425 note. 
than 210 days after the date of the enactment of this Act, 
the Administrator for Federal Procurement Policy shall issue 
for public comment a proposal to amend the Federal Acquisition 
Regulation to remove from the Federal Acquisition Regulation 
certification requirements for contractors and offerors that are 
not specifically imposed by statute. The Administrator may 
omit such a certification requirement from the proposal only 
if— 
(i) the Federal Acquisition Regulatory Council provides 
the Administrator with a written justification for the 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 657 
requirement and a determination that there is no less 
burdensome means for administering and enforcing the 
particular regulation that contains the certification require-
ment; and 
(ii) the Administrator approves in writing the retention 
of the certification requirement. 
(B)(i) Not later than 210 days after the date of the enact- Public comment, 
ment of this Act, the head of each executive agency that has 
agency procurement regulations containing one or more certifi-
cation requirements for contractors and offerors that are not 
specifically imposed by statute shall issue for public comment 
a proposal to amend the regulations to remove the certification 
requirements. The head of the executive agency may omit such 
a certification requirement from the proposal only if— 
(I) the senior procurement executive for the executive 
agency provides the head of the executive agency with 
a written justification for the requirement and a determina-
tion that there is no less burdensome means for administer-
ing and enforcing the particular regulation that contains 
the certification requirement; and 
(II) the head of the executive agency approves in writ-
ing the retention of such certification requirement. 
(ii) For purposes of clause (i), the term "head of the execu-
tive agency" with respect to a military department means the 
Secretary of Defense. 
(2) FUTURE CERTIFICATION REQUIREMENTS.—(A) Section 29 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
425) is amended— 
(i) by amending the heading to read as follows: 
"SEC. 29. CONTRACT CLAUSES AND CERTIFICATIONS."; 
(ii) 
by 
inserting 
"(a) 
NONSTANDARD 
CONTRACT 
CLAUSES.—" before "The Federal Acquisition"; and 
(iii) by adding at the end the following new subsection: 
"(c) 
PROHIBITION ON CERTIFICATION REQUIREMENTS.—(1) A 
requirement for a certification by a contractor or offeror may not 
be included in the Federal Acquisition Regulation unless— 
"(A) the certification requirement is specifically imposed 
by statute; or 
"(B) written justification for such certification requirement 
is provided to the Administrator for Federal Procurement Policy 
by the Federal Acquisition Regulatory Council, and the 
Administrator approves in writing the inclusion of such certifi-
cation requirement. 
"(2)(A) A requirement for a certification by a contractor or 
offeror may not be included in a procurement regulation of an 
executive agency unless— 
"(i) the certification requirement is specifically imposed 
by statute; or 
"(ii) written justification for such certification requirement 
is provided to the head of the executive agency by the senior 
procurement executive of the agency, and the head of the execu-
tive agency approves in writing the inclusion of such certifi-
cation requirement. 
"(B) For purposes of subparagraph (A), the term 'head of the 
executive agency' with respect to a military department means 
the Secretary of Defense.". 
110 STAT. 658 
PUBLIC LAW 104-10&—FEB. 10, 1996 
(B) The item relating to section 29 in the table of contents 
for the Office of Federal Procurement Policy Act (contained 
in section 1(b)) (41 U.S.C. 401 note) is amended to read as 
follows: 
"Sec. 29. Contract clauses and certifications.". 
(c) POLICY OF CONGRESS.—Section 29 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 425) is further amended by 
adding after subsection (a) the following new subsection: 
"(b) CONSTRUCTION OF CERTIFICATION REQUIREMENTS.—A provi-
sion of law may not be construed as requiring a certification by 
a contractor or offeror in a procurement made or to be made 
_ 
by the Federal Government unless that provision of law specifically 
provides that such a certification shall be required.". 
SEC. 4302. AUTHORITIES CONDITIONED ON FACNET CAPABILITY. 
(a) COMMENCEMENT AND EXPIRATION OF AUTHORITY TO CON-
DUCT CERTAIN TESTS OF PROCUREMENT PROCEDURES.—Subsection 
(j) of section 5061 of the Federal Acquisition Streamlining Act 
of 1994 (41 U.S.C. 413 note; 108 Stat. 3355) is amended to read 
as follows: 
"0") COMMENCEMENT AND EXPIRATION OF AUTHORITY.—The 
authority to conduct a test under subsection (a) in an agency and 
to award contracts under such a test shall take effect on January 
1, 1997, and shall expire on January 1, 2001. A contract entered 
into before such authority expires in an agency pursuant to a 
test shall remain in effect, in accordance with the terms of the 
contract, the notwithstanding of expiration the authority to conduct 
the test under this section.". 
(b) USE OF SIMPLIFIED ACQUISITION PROCEDURES.—Subsection 
(e) of section 31 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 427) is amended— 
(1) by striking out "ACQUISITION PROCEDURES.—" and all 
that follows through "(B) The simplified acquisition" in para-
graph (2)(B) and inserting in lieu thereof "ACQUISITION PROCE-
DURES.—The simplified acquisition"; and 
(2) by striking out "pursuant to this section" in the remain-
ing text and inserting in lieu thereof "pursuant to section 
2304(g)( 1)(A) of title 10, United States Code, section 303(g)( 1)(A) 
of the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 253(g)(1)(A)), and subsection (a)(1) of this 
section". 
SEC. 4303. INTERNATIONAL COMPETITIVENESS. 
(a) ADDITIONAL AUTHORITY TO WAIVE RESEARCH, DEVELOP-
MENT, AND PRODUCTION COSTS.—Subject to subsection (b), section 
21(e)(2) of the Arms Export Control Act (22 U.S.C. 2761(e)(2)) 
is amended— 
(1) by inserting "(A)" after "(2)"; and 
(2) by adding at the end the following new subparagraphs: 
"(B) The President may waive the charge or charges which 
would otherwise be considered appropriate under paragraph (1)(B) 
for a particular sale if the President determines that— 
"(i) imposition of the charge or charges likely would result 
in the loss of the sale; or 
"(ii) in the case of a sale of major defense equipment 
that is also being procured for the use of the Armed Forces, 
the waiver of the charge or charges would (through a resulting 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 659 
increase in the total quantity of the equipment purchased from 
the source of the equipment that causes a reduction in the 
unit cost of the equipment) result in a savings to the United 
States on the cost of the equipment procured for the use of 
the Armed Forces that substantially offsets the revenue fore-
gone by reason of the waiver of the charge or charges. 
"(C) The President may waive, for particular sales of major 
defense equipment, any increase in a charge or charges previously 
considered appropriate under paragraph (1)(B) if the increase 
results from a correction of an estimate (reasonable when made) 
of the production quantity base that was used for calculating the 
charge or charges for purposes of such paragraph.". 
(b) CONDITIONS.—-Subsection (a) shall be effective only if— 
22 USC 2761 
(1) the President, in the budget of the President for fiscal note. 
year 1997, proposes legislation that if enacted would be qualify-
ing offsetting legislation; and 
(2) there is enacted qualifying offsetting legislation. 
(c) EFFECTIVE DATE.—If the conditions in subsection (b) are 
22 use 2761 
met, then the amendments made by subsection (a) shall take effect 
note. 
on the date of the enactment of qualifying offsetting legislation. 
(d) DEFINITIONS.—For purposes of this section: 
22 use 2761 
(1) The term "qualifying offsetting legislation" means legis- note. 
lation that includes provisions that— 
(A) offset fully the estimated revenues lost as a result 
of the amendments made by subsection (a) for each of 
the fiscal years 1997 through 2005; 
(B) expressly state that they are enacted for the pur-
pose of the offset described in subparagraph (A); and 
(C) are included in full on the PayGo scorecard. 
(2) The term "PayGo scorecard" means the estimates that 
are made by the Director of the Congressional Budget Office 
and the Director of the Office of Management and Budget 
under section 252(d) of the Balanced Budget and Emergency 
Deficit Control Act of 1985. 
SEC. 4304. PROCUREMENT INTEGRITY. 
(a) AMENDMENT OF PROCUREMENT INTEGRITY PROVISION.—Sec-
tion 27 of the Office of Federal Procurement Policy Act (41 U.S.C. 
423) is amended to read as follows: 
"SEC. 27. RESTRICTIONS ON DISCLOSING AND OBTAINING CONTRAC- 
41 USC 423. 
TOR BID OR PROPOSAL INFORMATION OR SOURCE SELEC-
TION INFORMATION. 
"(a) 
PROHIBITION ON DISCLOSING PROCUREMENT INFORMA-
TION.—(1) A person described in paragraph (2) shall not, other 
than as provided by law, knowingly disclose contractor bid or pro-
posal information or source selection information before the award 
of a Federal agency procurement contract to which the information 
relates. 
"(2) Paragraph (1) applies to any person who— 
"(A) is a present or former official of the United States, 
or a person who is acting or has acted for or on behalf of, 
or who is advising or has advised the United States with 
respect to, a Federal agency procurement; and 
"(B) by virtue of that office, employment, or relationship 
has or had access to contractor bid or proposal information 
or source selection information. 
110 STAT. 660 
PUBLIC LAW 104-106—FEB. 10, 1996 
Reports. 
Public 
information. 
"(b) PROHIBITION ON OBTAINING PROCUREMENT INFORMATION.— 
A person shall not, other than as provided by law, knowingly 
obtain contractor bid or proposal information or source selection 
information before the award of a Federal agency procurement 
contract to which the information relates. 
"(c) ACTIONS REQUIRED OF PROCUREMENT OFFICERS WHEN CON-
TACTED B
Y OFFERORS REGARDING NON-FEDERAL EMPLOYMENT.— 
(1) If an agency official who is participating personally and substan-
tially in a Federal agency procurement for a contract in excess 
of the simplified acquisition threshold contacts or is contacted by 
a person who is a bidder or offeror in that Federal agency procure-
ment regarding possible non-Federal employment for that official, 
the official shall— 
"(A) promptly report the contact in writing to the official's 
supervisor and to the designated agency ethics official (or des-
ignee) of the agency in which the official is employed; and 
"(B)(i) reject the possibility of non-Federal employment; 
or 
"(ii) disqualify himself or herself from further personal 
and substantial participation in that Federal agency procure-
ment until such time as the agency has authorized the official 
to resume participation in such procurement, in accordance 
with the requirements of section 208 of title 18, United States 
Code, and applicable agency regulations on the grounds that— 
"(I) the person is no longer a bidder or offeror in 
that Federal agency procurement; or 
"(II) all discussions with the bidder or offeror regarding 
possible non-Federal employment have terminated without 
an agreement or arrangement for employment. 
"(2) Each report required by this subsection shall be retained 
by the agency for not less than two years following the submission 
of the report. All such reports shall be made available to the 
public upon request, except that any part of a report that is exempt 
from the disclosure requirements of section 552 of title 5, United 
States Code, under subsection (b)(1) of such section may be withheld 
from disclosure to the public. 
"(3) An official who knowingly fails to comply with the require-
ments of this subsection shall be subject to the penalties and 
administrative actions set forth in subsection (e). 
"(4) A bidder or offeror who engages in employment discussions 
with an official who is subject to the restrictions of this subsection, 
knowing that the official has not complied with subparagraph (A) 
or (B) of paragraph (1), shall be subject to the penalties and adminis-
trative actions set forth in subsection (e). 
"(d) PROHIBITION ON FORMER OFFICIAL'S ACCEPTANCE OF COM-
PENSATION FROM CONTRACTOR.—<1) A former official of a Federal 
agency may not accept compensation from a contractor as an 
employee, officer, director, or consultant of the contractor within 
a period of one year after such former official— 
"(A) served, at the time of selection of the contractor or 
the award of a contract to that contractor, as the procuring 
contracting officer, the source selection authority, a member 
of the source selection evaluation board, or the chief of a finan-
cial or technical evaluation team in a procurement in which 
that contractor was selected for award of a contract in excess 
of $10,000,000; 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 661 
"(B) served as the program manager, deputy program man-
ager, or administrative contracting officer for a contract in 
excess of $10,000,000 awarded to that contractor; or 
"(C) personally made for the Federal agency— 
"(i) a decision to award a contract, subcontract, modi-
fication of a contract or subcontract, or a task order or 
delivery order in excess of $10,000,000 to that contractor; 
"(ii) a decision to establish overhead or other rates 
applicable to a contract or contracts for that contractor 
that are valued in excess of $10,000,000; 
"(iii) a decision to approve issuance of a contract pay-
ment or payments in excess of $10,000,000 to that contrac-
tor; or 
"(iv) a decision to pay or settle a claim in excess of 
$10,000,000 with that contractor. 
"(2) Nothing in paragraph (1) may be construed to prohibit 
a former official of a Federal agency from accepting compensation 
from any division or affiliate of a contractor that does not produce 
the same or similar products or services as the entity of the contrac-
tor that is responsible for the contract referred to in subparagraph 
(A), (B), or (C) of such paragraph. 
"(3) A former official who knowingly accepts compensation in 
violation of this subsection shall be subject to penalties and adminis-
trative actions as set forth in subsection (e). 
"(4) A contractor who provides compensation to a former official 
knowing that such compensation is accepted by the former official 
in violation of this subsection shall be subject to penalties and 
administrative actions as set forth in subsection (e). 
"(5) Regulations implementing this subsection shall include 
procedures for an official or former official of a Federal agency 
to request advice from the appropriate designated agency ethics 
official regarding whether the official or former official is or would 
be precluded by this subsection from accepting compensation from 
a particular contractor. 
"(e) PENALTIES AND ADMINISTRATIVE ACTIONS.— 
"(1) CRIMINAL PENALTIES.—^Whoever engages in conduct 
constituting a violation of subsection (a) or (b) for the purpose 
of either— 
"(A) exchanging the information covered by such sub-
section for anything of value, or 
"(B) obtaining or giving anyone a competitive advan-
tage in the award of a Federal agency procurement 
contract, 
shall be imprisoned for not more than 5 years or fined as 
provided under title 18, United States Code, or both. 
"(2) CIVIL PENALTIES.—The Attorney General may bring 
a civil action in an appropriate United States district court 
against any person who engages in conduct constituting a viola-
tion of subsection (a), (b), (c), or (d). Upon proof of such conduct 
by a preponderance of the evidence, the person is subject to 
a civil penalty. An individual who engages in such conduct 
is subject to a civil penalty of not more than $50,000 for 
each violation plus twice the amount of compensation which 
the individual received or offered for the prohibited conduct. 
An organization that engages in such conduct is subject to 
a civil penalty of not more than $500,000 for each violation 
110 STAT. 662 
PUBLIC LAW 104-106—FEB. 10, 1996 
plus twice the amount of compensation which the organization 
received or offered for the prohibited conduct. 
"(3) ADMINISTRATIVE ACTIONS.—(A) If a Federal agency 
receives information that a contractor or a person has engaged 
in conduct constituting a violation of subsection (a), (b), (c), 
or (d), the Federal agency shall consider taking one or more 
of the following actions, as appropriate: 
"(i) Cancellation of the Federal agency procurement, 
if a contract has not yet been awarded. 
"(ii) Rescission of a contract with respect to which— 
"(I) the contractor or someone acting for the con-
tractor has been convicted for an offense punishable 
under paragraph (1), or 
"(II) the head of the agency that awarded the 
contract has determined, based upon a preponderance 
of the evidence, that the contractor or someone acting 
for the contractor has engaged in conduct constituting 
such an offense. 
"(iii) Initiation of suspension or debarment proceedings 
for the protection of the Government in accordance with 
procedures in the Federal Acquisition Regulation. 
"(iv) Initiation of adverse personnel action, pursuant 
to the procedures in chapter 75 of title 5, United States 
Code, or other applicable law or regulation. 
"(B) If a Federal agency rescinds a contract pursuant to 
subparagraph (A)(ii), the United States is entitled to recover, 
in addition to any penalty prescribed by law, the amount 
expended under the contract. 
"(C) For purposes of any suspension or debarment proceed-
ings initiated pursuant to subparagraph (A)(iii), engaging in 
conduct constituting an offense under subsection (a), (b), (c), 
or (d) affects the present responsibility of a Government con-
tractor or subcontractor. 
"(f) DEFINITIONS.—^As used in this section: 
"(1) The term 'contractor bid or proposal information' means 
any of the following information submitted to a Federal agency 
as part of or in connection with a bid or proposal to enter 
into a Federal agency procurement contract, if that information 
has not been previously made available to the public or dis-
closed publicly: 
"(A) Cost or pricing data (as defined by section 2306a(h) 
of title 10, United States Code, with respect to procure-
ments subject to that section, and section 304A(h) of the 
Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 254b(h)), with respect to procurements subject 
to that section). 
"(B) Indirect costs and direct labor rates. 
"(C) Proprietary information 
about 
manufacturing 
processes, operations, or techniques marked by the contrac-
tor in accordance with applicable law or regulation. 
"(D) Information marked by the contractor as 'contrac-
tor bid or proposal information', in accordance with 
applicable law or regulation. 
"(2) The term 'source selection information' means any 
of the following information prepared for use by a Federal 
agency for the purpose of evaluating a bid or proposal to enter 
into a Federal agency procurement contract, if that information 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 663 
has not been previously made available to the public or dis-
closed publicly: 
"(A) Bid prices submitted in response to a Federal 
agency solicitation for sealed bids, or lists of those bid 
prices before public bid opening. 
"(B) Proposed costs or prices submitted in response 
to a Federal agency solicitation, or lists of those proposed 
costs or prices. 
"(C) Source selection plans. 
"(D) Technical evaluation plans. 
"(E) Technical evaluations of proposals. 
"(F) Cost or price evaluations of proposals. 
"(G) Competitive range determinations that identify 
proposals that have a reasonable chance of being selected 
for award of a contract. 
"(H) Rankings of bids, proposals, or competitors. 
"(I) The reports and evaluations of source selection 
panels, boards, or advisory councils. 
"(J) Other information marked as 'source selection 
information' based on a case-by-case determination by the 
head of the agency, his designee, or the contracting officer 
that its disclosure would jeopardize the integrity or success-
ful completion of the Federal agency procurement to which 
the information relates. 
"(3) The term 'Federal agency' has the meaning provided 
such term in section 3 of the Federal Property and Administra-
tive Services Act of 1949 (40 U.S.C. 472). 
"(4) The term 'Federal agency procurement' means the 
acquisition (by using competitive procedures and awarding a 
contract) of goods or services (including construction) from non-
Federal sources by a Federal agency using appropriated funds. 
"(5) The term 'contracting officer' means a person who, 
by appointment in accordance with applicable regulations, has 
the authority to enter into a Federal agency procurement con-
tract on behalf of the Government and to make determinations 
and findings with respect to such a contract. 
"(6) The term 'protest' means a written objection by an 
interested party to the award or proposed award of a Federal 
agency procurement contract, pursuant to subchapter V of chap-
ter 35 of title 31, United States Code. 
"(7) The term 'official' means the following: 
"(A) An officer, as defined in section 2104 of title 5, 
United States Code. 
"(B) An employee, as defined in section 2105 of title 
5, United States Code. 
"(C) A member of the uniformed services, as defined 
in section 2101(3) of title 5, United States Code. 
"(g) LIMITATION ON PROTESTS.—No person may file a protest 
against the award or proposed award of a Federal agency procure-
ment contract alleging a violation of subsection (a), (b), (c), or 
(d), nor may the Comptroller General of the United States consider 
such an allegation in deciding a protest, unless that person reported 
to the Federal agency responsible for the procurement, no later 
than 14 days after the person first discovered the possible violation, 
the information that the person believed constitutes evidence of 
the offense. 
"(h) SAVINGS PROVISIONS.—^This section does not— 
110 STAT. 664 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(1) restrict the disclosure of information to, or its receipt 
by, any person or class of persons authorized, in accordance 
with applicable agency regulations or procedures, to receive 
that information; 
"(2) restrict a contractor from disclosing its own bid or 
proposal information or the recipient from receiving that 
information; 
"(3) restrict the disclosure or receipt of information relating 
to a Federal agency procurement after it has been canceled 
by the Federal agency before contract award unless the Federal 
agency plans to resume the procurement; 
"(4) prohibit individual meetings between a Federal agency 
official and an offeror or potential offeror for, or a recipient 
of, a contract or subcontract under a Federal agency procure-
ment, provided that unauthorized disclosure or receipt of 
contractor bid or proposal information or source selection 
information does not occur; 
"(5) authorize the withholding of information from, nor 
restrict its receipt by. Congress, a committee or subcommittee 
of Congress, the Comptroller General, a Federal agency, or 
an inspector general of a Federal agency; 
"(6) authorize the withholding of information from, nor 
restrict its receipt by, the Comptroller General of the United 
States in the course of a protest against the award or proposed 
award of a Federal agency procurement contract; or 
"(7) limit the applicability of any requirements, sanctions, 
contract penalties, and remedies established under any other 
law or regulation.". 
(b) REPEALS.—The following provisions of law are repealed: 
(1) Sections 2397, 2397a, 2397b, and 2397c of title 10, 
United States Code. 
(2) Section 33 of the Federal Energy Administration Act 
of 1974(15U.S.C. 789). 
(3) Section 281 of title 18, United States Code. 
(4) Subsection (c) of section 32 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 428). 
(5) The first section 19 of the Federal Nonnuclear Energy 
Research and Development Act of 1974 (42 U.S.C. 5918). 
(6) Part A of title VI of the Department of Energy Organiza-
tion Act and its catchline (42 U.S.C. 7211, 7212, and 7218). 
(7) Section 308 of the Energy Research and Development 
Administration Appropriation Authorization Act for Fiscal Year 
1977 (42 U.S.C. 5816a). 
(8) Section 522 of the Energy Policy and Conservation 
Act (42 U.S.C. 6392). 
(c) CLERICAL AMENDMENTS.— 
(1) The table of sections at the beginning of chapter 141 
of title 10, United States Code, is amended by striking out 
the items relating to sections 2397, 2397a, 2397b, and 2397c. 
(2) The table of sections at the beginning of chapter 15 
of title 18, United States Code, is amended by striking out 
the item relating to section 281. 
(3) Section 32 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 428) is amended by redesignating subsections 
(d), (e), (f), and (g) as subsections (c), (d), (e), and (f), respec-
tively. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 665 
(4) The table of contents for the Department of Energy 
Organization Act is amended by striking out the items relating 
to part A of title VI including sections 601 through 603. 
(5) The table of contents for the Energy Policy and Con-
servation Act is amended by striking out the item relating 
to section 522. 
SEC. 4305. FURTHER ACQUISITION STREAMLINING PROVISIONS. 
(a) PURPOSE OF OFFICE OF FEDERAL PROCUREMENT POLICY.— 
(1) REVISED STATEMENT OF PURPOSE.—Section 5(a) of the 
Office of Federal Procurement PoHcy Act (41 U.S.C. 404) is 
amended to read as follows: 
"(a) There is in the Office of Management and Budget an 
Office of Federal Procurement Policy (hereinafter referred to as 
the 'Office') to provide overall direction of Government-wide procure-
ment policies, regulations, procedures, and forms for executive agen-
cies and to promote economy, efficiency, and effectiveness in the 
procurement of property and services by the executive branch of 
the Federal Government.". 
(2) REPEAL OF FINDINGS, POLICIES, AND PURPOSES.—Sec-
tions 2 and 3 of such Act (41 U.S.C. 401 and 402) are repealed. 
(b) REPEAL OF REPORT REQUIREMENT.—Section 8 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 407) is repealed. 
(c) OBSOLETE PROVISIONS.— 
(1) RELATIONSHIP TO FORMER REGULATIONS.—Section 10 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
409) is repealed. 
(2) AUTHORIZATION OF APPROPRIATIONS.—Section 11 of such 
Act (41 U.S.C. 410) is amended to read as follows: 
"SEC. 11. AUTHORIZATION OF APPROPRIATIONS. 
"There is authorized to be appropriated for the Office of Federal 
Procurement Policy each fiscal year such sums as may be necessary 
for carrying out the responsibilities of that office for such fiscal 
year.". 
(d) CLERICAL AMENDMENTS.—The table of contents for the Office 
of Federal Procurement Policy Act (contained in section 1(b)) is 
amended by striking out the items relating to sections 2, 3, 8, 
and 10. 
SEC. 4306. VALUE ENGINEERING FOR FEDERAL AGENCIES. 
(a) USE OF VALUE 
ENGINEERING.—The Offiice of Federal 
Procurement Policy Act (41 U.S.C. 401 et seq.), as amended by 
section 4203, is further amended by adding at the end the following 
new section: 
"SEC. 36. VALUE ENGINEERING. 
41 USC 432. 
"(a) IN GENERAL.—Each executive agency shall establish and 
maintain cost-effective value engineering procedures and processes. 
"(b) DEFINITION.—^As used in this section, the term 'value 
engineering' means an analysis of the functions of a program, 
project, system, product, item of equipment, building, facility, serv-
ice, or supply of an executive agency, performed by qualified agency 
or contractor personnel, directed at improving performance, reliabil-
ity, quality, safety, and life cycle costs.". 
110 STAT. 666 
PUBLIC LAW 104-106—FEB. 10, 1996 
(b) CLERICAL AMENDMENT.—The table of contents for such Act, 
contained in section 1(b), is amended by adding at the end the 
following new item: 
"Sec. 36. Value engineering.". 
SEC. 4307. ACQUISITION WORKFORCE. 
(a) 
ACQUISITION WORKFORCE.—(1) The Office of Federal 
Procurement Policy Act (41 U.S.C. 401 et seq.), as amended by 
section 4306, is further amended by adding at the end the following 
new section: 
41 use 433. 
"SEC. 37. ACQUISITION WORKFORCE. 
"(a) APPLICABILITY.—This section does not apply to an executive 
agency that is subject to chapter 87 of title 10, United States 
Code. 
"(b) MANAGEMENT POLICIES.— 
"(1) POLICIES AND PROCEDURES.—The head of each execu-
tive agency, after consultation with the Administrator for Fed-
eral Procurement Policy, shall establish policies and procedures 
for the effective management (including accession, education, 
training, career development, and performance incentives) of 
the acquisition workforce of the agency. The development of 
acquisition workforce policies under this section shall be carried 
out consistent with the merit system principles set forth in 
section 2301(b) of title 5, United States Code. 
"(2) UNIFORM IMPLEMENTATION.—^The head of each execu-
tive agency shall ensure that, to the maximum 
extent 
practicable, acquisition workforce policies and procedures estab-
lished are uniform in their implementation throughout the 
agency. 
"(3) GOVERNMENT-WIDE POLICIES AND EVALUATION.—The 
Administrator 
shall 
issue 
policies to promote 
uniform 
implementation of this section by executive agencies, with due 
regard for differences in program requirements among agencies 
that may be appropriate and warranted in view of the agency 
mission. The Administrator shall coordinate with the Deputy 
Director for Management of the Office of Management and 
Budget to ensure that such policies are consistent with the 
policies and procedures established and enhanced system of 
incentives provided pursuant to section 5051(c) of the Federal 
Acquisition Streamlining Act of 1994 (41 U.S.C. 263 note). 
The Administrator shall evaluate the implementation of the 
provisions of this section by executive agencies. 
"(c) 
SENIOR 
PROCUREMENT 
EXECUTIVE 
AUTHORITIES AND 
RESPONSIBILITIES.—Subject to the authority, direction, and control 
of the head of an executive agency, the senior procurement executive 
of the agency shall carry out all powers, functions, and duties 
of the head of the agency with respect to implementation of this 
section. The senior procurement executive shall ensure that the 
policies of the head of the executive agency established in accord-
ance with this section are implemented throughout the agency. 
"(d) MANAGEMENT INFORMATION SYSTEMS.—^The Administrator 
shall ensure that the heads of executive agencies collect and main-
tain standardized information on the acquisition workforce related 
to implementation of this section. To the maximum extent prac-
ticable, such data requirements shall conform to standards estab-
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 667 
lished by the Office of Personnel Management for the Central 
Personnel Data File. 
"(e) APPLICABILITY TO ACQUISITION WORKFORCE.—The programs 
established by this section shall apply to the acquisition workforce 
of each executive agency. For purposes of this section, the acquisi-
tion workforce of an agency consists of all employees serving in 
acquisition positions listed in subsection (g)(1)(A). 
"(f) CAREER DEVELOPMENT.— 
"(1) CAREER PATHS.—^The head of each executive agency 
shall ensure that appropriate career paths for personnel who 
desire to pursue careers in acquisition are identified in terms 
of the education, training, experience, and assignments nec-
essary for career progression to the most senior acquisition 
positions. The head of each executive agency shall make 
information available on such career paths. 
"(2) CRITICAL DUTIES AND TASKS.—For each career path, 
the head of each executive agency shall identify the critical 
acquisition-related duties and tasks in which, at minimum, 
employees of the agency in the career path shall be competent 
to perform at full performance grade levels. For this purpose, 
the head of the executive agency shall provide appropriate 
coverage of the critical duties and tasks identified by the Direc-
tor of the Federal Acquisition Institute. 
"(3) MANDATORY TRAINING AND EDUCATION.—For each 
career path, the head of each executive agency shall establish 
requirements for the completion of course work and related 
on-the-job training in the critical acquisition-related duties and 
tasks of the career path. The head of each executive agency 
shall also encourage employees to maintain the currency of 
their acquisition knowledge and generally enhance their knowl-
edge of related acquisition management disciplines through 
academic programs and other self-developmental activities. 
"(4) PERFORMANCE INCENTIVES.—The head of each execu-
tive agency shall provide for an enhanced system of incentives 
for the encouragement of excellence in the acquisition workforce 
which rewards performance of employees that contribute to 
achieving the agency's performance goals. The system of incen-
tives shall include provisions that— 
"(A) relate pay to performance (including the extent 
to which the performance of personnel in such workforce 
contributes to achieving the cost goals, schedule goals, and 
performance goals established for acquisition programs 
pursuant to section 313(b) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 263(b))); 
and 
"(B) provide for consideration, in personnel evaluations 
and promotion decisions, of the extent to which the 
performance of personnel in such workforce contributes 
to achieving such cost goals, schedule goals, and perform-
ance goals. 
"(g) QUALIFICATION REQUIREMENTS.— 
"(1) IN GENERAL.—(A) Subject to paragraph (2), the 
Administrator 
shall 
establish 
qualification 
requirements, 
including education requirements, for the following positions: 
"(i) Entry-level positions in the General Schedule 
Contracting series (GS-1102). 
110 STAT. 668 
PUBLIC LAW 104-106—FEB. 10, 1996 
"(ii) Senior positions in the G^eneral Schedule Contract-
ing series (GS-1102). 
"(iii) All positions in the General Schedule Purchasing 
series (GS-1105). 
"(iv) Positions in other General Schedule series in 
which significant acquisition-related functions are per-
formed. 
"(B) Subject to paragraph (2), the Administrator shall pre-
scribe the manner and extent to which such qualification 
requirements shall apply to any person serving in a position 
described in subparagraph (A) at the time such requirements 
are established. 
"(2) 
RELATIONSHIP TO 
REQUIREMENTS APPLICABLE 
TO 
DEFENSE ACQUISITION WORKFORCE.—^The Administrator shall 
establish qualification requirements and make prescriptions 
under paragraph (1) that are comparable to those established 
for the same or equivalent positions pursuant to chapter 87 
of title 10, United States Code, with appropriate modifications. 
"(3) APPROVAL OF REQUIREMENTS.—The Administrator shall 
submit any requirement established or prescription made under 
paragraph (1) to the Director of the Office of Personnel Manage-
ment for approval. If the Director does not disapprove a require-
ment or prescription within 30 days after the date on which 
the Director receives it, the requirement or prescription is 
deemed to be approved by the Director. 
"(h) EDUCATION AND TRAINING.— 
"(1) FUNDING LEVELS.—(A) The head of an executive agency 
shall set forth separately the funding levels requested for edu-
cation and training of the acquisition workforce in the budget 
justification documents submitted in support of the President's 
budget submitted to Congress under section 1105 of title 31, 
United States Code. 
"(B) Funds appropriated for education and training under 
this section may not be obligated for any other purpose. 
"(2) TUITION ASSISTANCE.—The head of an executive agency 
may provide tuition reimbursement in education (including a 
full-time course of study leading to a degree) in accordance 
with section 4107 of title 5, United States Code, for personnel 
serving in acquisition positions in the agency.". 
(2) The table of contents for such Act, contained in section 
Kb), is amended by adding at the end the following new item: 
"Sec. 37. Acquisition workforce.". 
(b) ADDITIONAL AMENDMENTS.—Section 6(d) 
of the Office of 
Federal Procurement Policy Act (41 U.S.C. 405), is amended— 
(1) by redesignating paragraphs (6), (7), (8), (9), (10), (11), 
and (12) (as transferred by section 4321(h)(1)) as paragraphs 
(7), (8), (9), (10), (11), (12), and (13), respectively; 
(2) in paragraph (5)— 
(A) in subparagraph (A), by striking out "Government-
wide career management programs for a professional 
procurement work force" and inserting in lieu thereof "the 
development 
of a 
professional 
acquisition 
workforce 
Grovemment-wide"; and 
(B) in subparagraph (B)— 
(i) by striking out "procurement by the" and insert-
ing in lieu thereof "acquisition by the"; 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 669 
(ii) by striking out "and" at the end of the subpara-
graph; and 
(iii) by striking out subparagraph (C) and inserting 
in Heu thereof the following: 
"(C) collect data and analyze acquisition workforce data 
from the Office of Personnel Management, the heads of 
executive agencies, and, through periodic surveys, from 
individual employees; 
"(D) periodically analyze acquisition career fields to 
identify critical competencies, duties, tasks, and related 
academic prerequisites, skills, and knowledge; 
"(E) coordinate and assist agencies in identifying and 
recruiting highly qualified candidates for acquisition fields; 
"(F) develop instructional materials jfor acquisition 
personnel in coordination with private and public acquisi-
tion colleges and training facilities; 
"(G) evaluate the effectiveness of training and career 
development programs for acquisition personnel; 
"(H) promote the establishment and utilization of aca-
demic programs by colleges and universities in acquisition 
fields; 
"(I) facilitate, to the extent requested by agencies, inter-
agency intern and training programs; and 
"(J) perform other career management or research 
functions as directed by the Administrator."; and 
(3) by inserting before paragraph (7) (as so redesignated) 
the following new paragraph (6): 
"(6) administering the provisions of section 37;". 
SEC. 4308. DEMONSTRATION 
PROJECT 
RELATING 
TO 
CERTAIN 
10 USC 1701 
PERSONNEL MANAGEMENT POLICIES AND PROCEDURES, 
note. 
(a) COMMENCEMENT.—^The Secretary of Defense is encouraged 
to take such steps as may be necessary to provide for the commence-
ment of a demonstration project, the purpose of which would be 
to determine the feasibility or desirability of one or more proposals 
for improving the personnel management policies or procedures 
that apply with respect to the acquisition workforce of the Depart-
ment of Defense. 
(b) TERMS AND CONDITIONS.— 
(1) IN GENERAL.—Except as otherwise provided in this sub-
section, any demonstration project described in subsection (a) 
shall be subject to section 4703 of title 5, United States Code, 
and all other provisions of such title that apply with respect 
to any demonstration project under such section. 
(2) EXCEPTIONS.—Subject to paragraph (3), in applying sec-
tion 4703 of title 5, United States Code, with respect to a 
demonstration project described in subsection (a)— 
(A) "180 days" in subsection (b)(4) of such section shall 
be deemed to read "120 days"; 
(B) "90 days" in subsection (b)(6) of such section shall 
be deemed to read "30 days"; and 
(C) subsection (d)(1)(A) of such section shall be dis-
regarded. 
(3) CONDITION.—Paragraph (2) shall not apply with respect 
to a demonstration project unless it— 
(A) involves only the acquisition workforce of the 
Department of Defense (or any part thereof); and 
110 STAT. 670 
PUBLIC LAW 104-106—FEB. 10, 1996 
(B) commences during the 3-year period beginning on 
the date of the enactment of this Act. 
(c) DEFINITION.—For purposes of this section, the term "acquisi-
tion workforce" refers to the persons serving in acquisition positions 
within the Department of Defense, as designated pursuant to sec-
tion 1721(a) of title 10, United States Code. 
40 u s e 481 note. 
SEC. 4309. COOPERATIVE PURCHASING. 
(a) DELAY IN OPENING CERTAIN FEDERAL SUPPLY SCHEDULES 
To USE BY STATE, LOCAL, AND INDIAN TRIBAL GOVERNMENTS.— 
The Administrator of General Services may not use the authority 
of section 201(b)(2) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 481(b)(2)) to provide for the use 
of Federal supply schedules of the General Services Administration 
until after the later of— 
(1) the date on which the 18-month period beginning on 
the date of the enactment of this Act expires; or 
(2) the date on which all of the following conditions are 
met: 
(A) The Administrator has considered the report of 
the Comptroller General required by subsection (b). 
(B) The Administrator has submitted comments on 
such report to Congress as required by subsection (c). 
(C) A period of 30 days after the date of submission 
of such comments to Congress has expired. 
(b) REPORT.—^Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the Administrator of General Services and to Congress a report 
on the implementation of section 201(b) of the Federal Property 
and Administrative Services Act of 1949. The report shall include 
the following: 
(1) An assessment of the effect on industry, including small 
businesses and local dealers, of providing for the use of Federal 
supply 
schedules 
by 
the 
entities 
described 
in 
section 
201(b)(2)(A) of the Federal Property and Administrative Serv-
ices Act of 1949. 
(2) An assessment of the effect on such entities of providing 
for the use of Federal supply schedules by them. 
(c) COMMENTS ON REPORT BY ADMINISTRATOR.—Not later than 
30 days after receiving the report of the Comptroller General 
required by subsection (b), the Administrator of General Services 
shall submit to Congress comments on the report, including the 
Administrator's comments on whether the Administrator plans to 
provide any Federal supply schedule for the use of any entity 
described in section 201(b)(2)(A) of the Federal Property and 
Administrative Services Act of 1949. 
(d) CALCULATION OF 30-DAY PERIOD.—For purposes of sub-
section (a)(2)(C), the calculation of the 30-day period shall exclude 
Saturdays, Sundays, and holidays, and any day on which neither 
House of Congress is in session because of an adjournment sine 
die, a recess of more than 3 days, or an adjournment of more 
than 3 days. 
SEC. 4310. PROCUREMENT NOTICE TECHNICAL AMENDMENT. 
Section 18(c)(1)(E) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 416(c)(1)(E)) is amended by inserting after "require-
ments contract" the following: ", a task order contract, or a delivery 
order contract". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 671 
SEC. 4311. MICRO-PURCHASES WITHOUT COMPETITIVE QUOTATIONS. 
Section 32(c) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 428), as redesignated by section 4304(c)(3), is amended 
by striking out "the contracting officer" and inserting in lieu thereof 
"an employee of an executive agency or a member of the Armed 
Forces of the United States authorized to do so". 
Subtitle B—Technical Amendments 
SEC. 4321. AMENDMENTS 
RELATED 
TO FEDERAL 
ACQUISITION 
STREAMLINING ACT OF 1994. 
(a) PUBLIC LAW 103-355.—Effective as of October 13, 1994, 
and as if included therein as enacted, the Federal Acquisition 
Streamlining Act of 1994 (Public Law 103-355; 108 Stat. 3243 
et seq.) is amended as follows: 
(1) Section 1073 (108 Stat. 3271) is amended by striking 
out "section 3031" and inserting in lieu thereof "section 303K". 
(2) Section 1202(a) (108 Stat. 3274) is amended by striking 
out the closing quotation marks and second period at the end 
of paragraph (2)(B) of the subsection inserted by the amend-
ment made by that section. 
(3) Section 1251(b) (108 Stat. 3284) is amended by striking 
out "Office of Federal Procurement Policy Act" and inserting 
in lieu thereof "Federal Property and Administrative Services 
Act of 1949". 
(4) Section 2051(e) (108 Stat. 3304) is amended by striking 
out the closing quotation marks and second period at the end 
of subsection (f)(3) in the matter inserted by the amendment 
made by that section. 
(5) Section 2101(a)(6)(B)(ii) (108 Stat. 3308) is amended 
by replacing "regulation" with "regulations" in the first quoted 
matter. 
(6) Section 2351(a) (108 Stat. 3322) is amended by inserting 
"(1)" before "Section 6". 
(7) The heading of section 2352(b) (108 Stat. 3322) is 
amended by striking out "PROCEDURES TO SMALL BUSINESS 
GOVERNMENT CONTRACTORS.—" and inserting in lieu thereof 
"PROCEDURES.—". 
(8) Section 3022 (108 Stat. 3333) is amended by striking 
out "each place" and all that follows through the end of the 
section and inserting in lieu thereof "in paragraph (1) and 
', rent,' after 'sell' in paragraph (2).". 
(9) Section 5092(b) (108 Stat. 3362) is amended by inserting 
"of paragraph (2)" after "second sentence". 
(10) Section 6005(a) (108 Stat. 3364) is amended by striking 
out the closing quotation marks and second period at the end 
of subsection (e)(2) of the matter inserted by the amendment 
made by that section. 
(11) Section 10005(f)(4) (108 Stat. 3409) is amended in 
the second matter in quotation marks by striking out "'SEC. 
5. This Act" and inserting in Heu thereof "'SEC. 7. This title". 
(b) TITLE 10, UNITED STATES CODE.—Title 10, United States 
Code, is amended as follows: 
(1) Section 2220(b) is amended by striking out "the date 
of the enactment of the Federal Acquisition Streamlining Act 
of 1994" and inserting in lieu thereof "October 13, 1994". 
Effective date. 
10 use 2306a 
note. 
41 use 253/. 
10 use 2306a. 
41 use 254b 
note. 
41 use 255. 
10 use 2324. 
41 use 605. 
41 use 605. 
10 use 2539b. 
41 use 418b. 
10 use 2409. 
41 use 10a note. 
110 STAT. 672 
PUBLIC LAW 104-106—FEB. 10, 1996 
(2)(A) The section 2247 added by section 7202(a)( 1) of Public 
Law 103-355 (108 Stat. 3379) is redesignated as section 2249. 
(B) The item relating to that section in the table of sections 
at the beginning of subchapter I of chapter 134 is revised 
to conform to the redesignation made by subparagraph (A). 
(3) Section 2302(3)(K) is amended by adding a period at 
the end. 
(4) Section 2304(f)(2)(D) is amended by striking out "the 
Act of June 25, 1938 (41 U.S.C. 46 et seq.), popularly referred 
to as the Wagner-O'Day Act," and inserting in lieu thereof 
"the Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.),". 
(5) Section 2304(h) is amended by striking out paragraph 
(1) and inserting in lieu thereof the following: 
"(1) The Walsh-Healey Act (41 U.S.C. 35 et seq.).". 
(6)(A) The section 2304a added by section 848(a)(1) of PubHc 
Law 103-160 (107 Stat. 1724) is redesignated as section 2304e. 
(B) The item relating to that section in the table of sections 
at the beginning of chapter 137 is revised to conform to the 
redesignation made by subparagraph (A). 
(7) Section 2306a is amended— 
(A) in subsection (d)(2)(A)(ii), by inserting "to" after 
"The information referred"; 
(B) in subsection (e)(4)(B)(ii), by striking out the second 
comma after "parties"; and 
(C) in subsection (i)(3), by inserting "(41 U.S.C. 
403(12))" before the period at the end. 
(8) Section 2323 is amended— 
(A) in subsection (a)(1)(C), by inserting a closing paren-
thesis after "1135d-5(3))" and after "1059c(b)(l))"; 
(B) in subsection (a)(3), by striking out "(issued under" 
and all that follows through "421(c))"; 
(C) 
in 
subsection 
(b), by 
inserting 
"(1)" 
after 
"AMOUNT.—"; and 
(D) in subsection (i)(3), by adding at the end a subpara-
graph (D) identical to the subparagraph (D) set forth in 
the amendment made by section 811(e) of Public Law 103-
160 (107 Stat. 1702). 
(9) Section 2324 is amended— 
(A) in subsection (e)(2)(C)— 
(i) by striking out "awarding the contract" at the 
end of the first sentence; and 
(ii) by striking out "title III" and all that follows 
through "Act)" and inserting in lieu thereof "the Buy 
American Act (41 U.S.C. lOb-1)"; and 
(B) in subsection (h)(2), by inserting "the head of the 
agency or" after "in the case of any contract if. 
(10) Section 2350b is amended— 
(A) in subsection (c)(1)— 
(i) by striking out "specifically—" and inserting 
in lieu thereof "specifically prescribes—"; and 
(ii) by striking out "prescribe" in each of subpara-
graphs (A), (B), (C), and (D); and 
(B) in subsection (d)(1), by striking out "subcontract 
to be" and inserting in lieu thereof "subcontract be". 
(11) Section 2372(i)(l) is amended by striking out "section 
2324(m)" and inserting in lieu thereof "section 2324(1)". 
(12) Section 2384(b) is amended— 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 673 
(A) in paragraph (2)— 
(i) by striking "items, as" and inserting in lieu 
thereof "items (as"; and 
(ii) by inserting a closing parenthesis 
after 
"403(12))"; and 
(B) in paragraph (3), by inserting a closing parenthesis 
after "403(11))". 
(13) Section 2400(a)(5) is amended by striking out "the 
preceding sentence" and inserting in lieu thereof "this para-
graph". 
(14) Section 2405 is amended— 
(A) in paragraphs (1) and (2) of subsection (a), by 
striking out "the date of the enactment of the Federal 
Acquisition Streamlining Act of 1994" and inserting in 
lieu thereof "October 13, 1994"; and 
(B) in subsection (c)(3)— 
(i) by striking out "the later of—" and all that 
follows through "(B)"; and 
(ii) by redesignating clauses (i), (ii), and (iii) as 
subparagraphs (A), (B), and (C), respectively, and 
realigning those subparagraphs accordingly. 
(15) Section 2410d(b) is amended by striking out paragraph 
(3). 
(16) Section 2410g(d)(l) is amended by inserting before 
the period at the end the following; "(as defined in section 
4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 
403(12)))". 
(17) Section 2424(c) is amended— 
(A) by inserting "EXCEPTION.—" after "(c)"; and 
(B) by striking out "drink" the first and third places 
it appears in the second sentence and inserting in lieu 
thereof "beverage". 
(18) Section 2431 is amended— 
(A) in subsection (b)— 
(i) by striking out "Any report" in the first sentence 
and inserting in lieu thereof "Any documents"; and 
(ii) by striking out "the report" in paragraph (3) 
and inserting in lieu thereof "the documents"; and 
(B) in subsection (c), by striking "reporting" and insert-
ing in lieu thereof "documentation". 
(19) Section 2461(e)(1) is amended by striking out "the 
Act of June 25, 1938 (41 U.S.C. 47), popularly referred to 
as the Wagner-O'Day Act" and inserting in lieu thereof "the 
Javits-Wagner-O'Day Act (41 U.S.C. 47)". 
(20) Section 2533(a) is amended by striking out "title III 
of the Act" and all that follows through "such Act" and inserting 
in lieu thereof "the Buy American Act (41 U.S.C. 10a)) whether 
application of such Act". 
(21) Section 2662(b) is amended by striking out "small 
purchase threshold" and inserting in lieu thereof "simplified 
acquisition threshold". 
(22) Section 2701(i)(l) is amended— 
(A) by striking out "Act of August 24, 1935 (40 U.S.C. 
270a-270d), commonly referred to as the 'Miller Act'," and 
inserting in lieu thereof "Miller Act (40 U.S.C. 270a et 
seq.)"; and 
110 STAT. 674 
PUBLIC LAW 104-106—FEB. 10, 1996 
(B) by striking out "such Act/of August 24, 1935" 
and inserting in lieu thereof "the Miller Act". 
(c) SMALL BUSINESS ACT.—The Small Business Act (15 U.S.C. 
632 et seq.) is amended as follows: 
/ 
(1) Section 8(d) (15 U.S.C. 637(d)) is^ amended— 
(A) in paragraph (1), by striking out the second comma 
after "small business concerns" the first place it appears; 
and 
(B) in paragraph (6)(C), by striking out "and small 
business concerns owned and controlled by the socially 
and economically disadvantaged individuals" and inserting 
in lieu thereof ", small business concerns owned and con-
trolled by socially and economically disadvantaged individ-
uals, and small business concerns owned and controlled 
by women". 
(2) Section 8(f) (15 U.S.C. 637(f)) is amended by inserting 
"and" after the semicolon at the end of paragraph (5). 
(3) Section 15(g)(2) (15 U.S.C. 644(g)(2)) is amended by 
striking out the second comma after the first appearance of 
"small business concerns". 
(d) TITLE 31, UNITED STATES CODE.—Title 31, United States 
Code, is amended as follows: 
(1) Section 3551 is amended— 
(A) by striking out "subchapter—" and inserting in 
lieu thereof "subchapter:"; and 
(B) in paragraph (2), by striking out "or proposed con-
tract" and inserting in lieu thereof "or a solicitation or 
other request for offers". 
(2) Section 
3553(b)(3) is amended by striking out 
"3554(a)(3)" and inserting in lieu thereof "3554(a)(4)". 
(3) Section 3554(b)(2) is amended by striking out "section 
3553(d)(2)(A)(i)" and inserting 
in 
lieu 
thereof 
"section 
3553(d)(3)(C)(i)(I)". 
(e) FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 
1949.—The Federal Property and Administrative Services Act of 
1949 is amended as follows: 
(1) The table of contents in section 1 (40 U.S.C. 471 prec.) 
is amended— 
(A) by striking out the item relating to section 104; 
(B) by striking out the item relating to section 201 
and inserting in lieu thereof the following: 
"Sec. 201. Procurements, warehousing, and related activities."; 
(C) by inserting after the item relating to section 315 
the following new item: 
"Sec. 316. Merit-based award of grants for research and development."; 
(D) by striking out the item relating to section 603 
and inserting in lieu thereof the following: 
"Sec. 603. Authorizations for appropriations and transfer authority."; 
and 
(E) by inserting after the item relating to section 605 
the following new item: 
"Sec. 606. Sex discrimination.". 
(2) Section 303(f)(2)(D) (41 U.S.C. 253(f)(2)(D)) is amended 
by striking out "the Act of June 25, 1938 (41 U.S.C. 46 et 
seq.), popularly referred to as the Wagner-O'Day Act," and 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 675 
inserting in lieu thereof "the Javits-Wagner-O'Day Act (41 
U.S.C. 46 et seq.),". 
(3) The heading for paragraph (1) of section 304A(c) (41 
U.S.C. 254b(c)) is amended by changing each letter that is 
capitalized (other than the first letter of the first word) to 
lower case. 
(4) Subsection (d)(2)(A)(ii) of section 304A (41 U.S.C. 254b) 
is amended by inserting "to" after "The information referred". 
(5) Section 304C(a)(2) is amended by striking out "section 4lUSC254d. 
304B" and inserting in lieu thereof "section 304A". 
(6) Section 307(b) is amended by striking out "section 41USC257. 
305(c)" and inserting in lieu thereof "section 305(d)". 
(7) The heading for section 314A (41 U.S.C. 264a) is 
amended to read as follows: 
"SEC. 314A. DEFINITIONS RELATING TO PROCUREMENT OF COMMER-
CIAL ITEMS.". 
(8) Section 315(b) (41 U.S.C. 265(b)) is amended by striking 
out "inspector general" both places it appears and inserting 
in lieu thereof "Inspector General". 
(9) The heading for section 316 (41 U.S.C. 266) is amended 
by inserting at the end a period. 
(f) WALSH-HEALEY ACT.— 
(1) The Walsh-Healey Act (41 U.S.C. 35 et seq.) is 
amended— 
(A) by transferring the second section 11 (as added 
by section 7201(4) of Public Law 103-355) so as to appear 4lUSC43b. 
after section 10; and 
(B) by redesignating the three sections following such 
section 11 (as so transferred) as sections 12, 13, and 14. 4lUSC35note, 
(2) Such Act is further amended in section 10— 
44,45. 
(A) in subsection (b), by striking out "section 1(b)" 4lUSC43a. 
and inserting in lieu thereof "section 1(a)"; and 
(B) in subsection (c), by striking out the comma after 
"'locality'". 
(g) ANTI-KICKBACK ACT OF 1986.—Section 7(d) of the Anti-
Kickback Act of 1986 (41 U.S.C. 57(d)) is amended— 
(1) by striking out "such Act" and inserting in lieu thereof 
"the Office of Federal Procurement Policy Act"; and 
(2) by striking out the second period at the end. 
(h) OFFICE OF FEDERAL PROCUREMENT POLICY ACT.—The Office 
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is 
amended as follows: 
(1) Section 6 (41 U.S.C. 405) is amended by transferring 
paragraph (12) of subsection (d) (as such paragraph was 
redesignated by section 5091(2) of the Federal Acquisition 
Streamlining Act of 1994 (P.L. 103-355; 108 Stat. 3361)) to 
the end of that subsection. 
(2) Section 6(11) (41 U.S.C. 405(11)) is amended by striking 
out "small business" and inserting in lieu thereof "small 
businesses". 
(3) Section 18(b) (41 U.S.C. 416(b)) is amended by inserting 
"and" after the semicolon at the end of paragraph (5). 
(4) Section 26(D(3) (41 U.S.C. 422(0(3)) is amended in the 
first sentence by striking out "Not later than 180 days after 
the date of enactment of this section, the Administrator" and 
inserting in lieu thereof "The Administrator". 
110 STAT. 676 
PUBLIC LAW 104-106—FEB. 10, 1996 
(id OTHER LAWS.— 
(1) The National Defense Authorization Act for Fiscal Year 
1994 (PubHc Law 103-160) is amended as follows: 
10 use 2401 
(A) Section 126(c) (107 Stat. 1567) is amended by strik-
note. 
ing out "section 2401 of title 10, United States Code, or 
section 9081 of the Department of Defense Appropriations 
Act, 1990 (10 U.S.C. 2401 note)." and inserting in lieu 
thereof "section 2401 or 2401a of title 10, United States 
Code.". 
(B) Section 127 (107 Stat. 1568) is amended— 
(i) in subsection (a), by striking out "section 2401 
of title 10, United States Code, or section 9081 of 
the Department of Defense Appropriations Act, 1990 
(10 U.S.C. 2401 note)." and inserting in lieu thereof 
"section 2401 or 2401a of title 10, United States Code."; 
and 
(ii) in subsection (e), by striking out "section 9081 
of the Department of Defense Appropriations Act, 1990 
(10 U.S.C. 2401 note)." and inserting in lieu thereof 
"section 2401a of title 10, United States Code.". 
(2) The National Defense Authorization Act for Fiscal Years 
1990 and 1991 (Public Law 101-189) is amended by striking 
10 use 2325 
out section 824. 
note- 
(3) Section 117 of the National Defense Authorization Act, 
10 use 2341 
Fiscal Year 1989 (Public Law 100-456; 10 U.S.C. 2431 note) 
J^ote. 
is amended by striking out subsection (c). 
(4) The National Defense Authorization Act for Fiscal Years 
1988 and 1989 (Public Law 100-180) is amended by striking 
out section 825 (10 U.S.C. 2432 note). 
5 use 571 note. 
(5) Section 11 of Public Law 101-552 (5 U.S.C. 581 note) 
is amended by inserting "under" before "the amendments made 
by this Act". 
(6) The last sentence of section 6 of the Federal Power 
Act (16 U.S.C. 799) is repealed. 
(7) Section 101(a)(ll)(A) of the Rehabilitation Act of 1973 
(29 U.S.C. 721(a)(ll)(A)) is amended by striking out "the Act 
entitled 'An Act to create a Committee on Purchases of Blind-
made Products, and for other purposes', approved June 25, 
1938 (commonly known as the Wagner-O'Day Act; 41 U.S.C. 
46 et seq.)" and inserting in lieu thereof "the Javits-Wagner-
O'Day Act (41 U.S.C. 46 et seq.)". 
(8) The first section 5 of the Miller Act (40 U.S.C. 270a 
note) is redesignated as section 7 and, as so redesignated, 
is transferred to the end of that Act. 
(9) Section 3737(g) of the Revised Statutes of the United 
States (41 U.S.C. 15(g)) is amended by striking out "rights 
of obligations" sind inserting in lieu thereof "rights or obliga-
tions". 
(10) The Act of Jime 15, 1940 (41 U.S.C. 20a; Chapter 
367; 54 Stat. 398), is repealed. 
(11) The Act of November 28, 1943 (41 U.S.C. 20b; Chapter 
328; 57 Stat. 592), is repealed. 
(12) Section 3741 of the Revised Statutes of the United 
States (41 U.S.C. 22), as amended by section 6004 of Public 
Law 103-355 (108 Stat. 3364), is amended by striking out 
"No member" and inserting in lieu thereof "SEC. 3741. No 
Member". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 677 
(13) Section 5152(a)(1) of the Drug-Free Workplace Act 
of 1988 (41 U.S.C. 701(a)(1)) is amended by striking out "as 
defined in section 4 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403)" and inserting in lieu thereof "(as defined 
in section 4(12) of such Act (41 U.S.C. 403(12)))". 
SEC. 4322. MISCEULANEOUS AMENDMENTS TO FEDERAL ACQUISITION 
LAWS. 
(a) OFFICE OF FEDERAL PROCUREMENT POLICY ACT.—The Office 
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is amend-
ed as follows: 
(1) Section 6(b) (41 U.S.C. 405(b)) is amended by striking 
out the second comma after "under subsection (a)" in the first 
(2) Section 25(b)(2) (41 U.S.C. 421(b)(2)) is amended by 
striking out "Under Secretary of Defense for Acquisition" and 
inserting in lieu thereof "Under Secretary of Defense for 
Acquisition and Technology. 
(b) OTHER LAWS.— 
(1) Section 11(2) of the Inspector General Act of 1978 
(5 U.S.C. App.) is amended by striking out the second comma 
after "Community Service". 
(2) Section 908(e) of the Defense Acquisition Improvement 
Act of 1986 (10 U.S.C. 2326 note) is amended by striking 
out "section 2325(g)" and inserting in lieu thereof "section 
2326(g)". 
(3) Effective as of August 9, 1989, and as if included therein 
Effective date. 
as enacted. Public Law 101-73 is amended in 
section 
501(b)(1)(A) (103 Stat. 393) by striking out "be," and inserting 
5 USC app. 11, 
in lieu thereof "be;" in the second quoted matter therein. 
n note. 
(4) Section 3732(a) of the Revised Statutes of the United 
States (41 U.S.C. 11(a)) is amended by striking out the second 
comma after "quarters". 
(5) Section 2 of the Contract Disputes Act of 1978 (41 
U.S.C. 601) is amended in paragraphs (3), (5), (6), and (7), 
by striking out "The" and inserting in lieu thereof "the". 
(6) Section 6 of the Contract Disputes Act of 1978 (41 
U.S.C. 605) is amended in subsections (d) and (e) by inserting 
after "United States Code" each place it appears the following: 
"(as in effect on September 30, 1995)". 
(7) Section 13 of the Contract Disputes Act of 1978 (41 
tr.S.C. 612) is amended— 
(A) in subsection (a), by striking out "section 1302 
of the Act of July 27, 1956, (70 Stat. 694, as amended; 
31 U.S.C. 724a)" and inserting in lieu thereof "section 
1304 of title 31, United States Code"; and 
(B) in subsection (c), by striking out "section 1302 
of the Act of July 27, 1956, (70 Stat. 694, as amended; 
31 U.S.C. 724a)" and inserting in lieu thereof "section 
1304 of title 31, United States Code,". 
110 STAT. 678 
PUBLIC LAW 104-106—FEB. 10, 1996 
TITLE XLIV—EFFECTIVE DATES AND 
IMPLEMENTATION 
41 u s e 251 note. 
SEC. 4401. EFFECTIVE DATE AND APPLICABILITY. 
(a) EFFECTIVE DATE.—Except as otherwise provided in this 
division, this division and the amendments made by this division 
shall take effect on the date of the enactment of this Act. 
(b) APPLICABILITY OF AMENDMENTS.— 
(1) SOLICITATIONS, UNSOLICITED PROPOSALS, AND RELATED 
CONTRACTS.—^An amendment made by this division shall apply, 
in the manner prescribed in the final regulations promulgated 
pursuant to section 4402 to implement such amendment, with 
respect to any solicitation that is issued, any unsolicited pro-
posal that is received, and any contract entered into pursuant 
to such a solicitation or proposal, on or after the date described 
in paragraph (3). 
(2) OTHER MATTERS.—^An amendment made by this division 
shall also apply, to the extent and in the manner prescribed 
in the final regulations promulgated pursuant to section 4402 
to implement such amendment, with respect to any matter 
related to— 
(A) a contract that is in effect on the date described 
in paragraph (3); 
(B) an offer under consideration on the date described 
in paragraph (3); or 
(C) any other proceeding or action that is ongoing 
on the date described in paragraph (3). 
(3) DEMARCATION DATE.—The date referred to in para-
graphs (1) and (2) is the date specified in such final regulations. 
The date so specified shall be January 1, 1997, or any earlier 
date that is not within 30 days after the date on which such 
final regulations are published. 
41 u s e 251 note. 
S E C 4402. IMPLEMENTING REGULATIONS. 
Federal Register, 
(a) PROPOSED REVISIONS.—Proposed revisions to the Federal 
publication. 
Acquisition Regulation and such other proposed regulations (or 
revisions to existing regulations) as may be necessary to implement 
this Act shall be published in the Federal Register not later than 
210 days after the date of the enactment of this Act. 
(b) PUBLIC COMMENT.—The proposed regulations described in 
subsection (a) shall be made available for public comment for a 
period of not less than 60 days. 
Federal Register, 
(c) FiNAL REGULATIONS.—Final regulations shall be published 
publication. 
in the Federal Register not later than 330 days after the date 
of enactment of this Act. 
(d) MODIFICATIONS.—Final regulations promulgated pursuant 
to this section to implement an amendment made by this Act 
may provide for modification of an existing contract without consid-
eration upon the request of the contractor. 
(e) SAVINGS PROVISIONS.— 
(1) VALIDITY OF PRIOR ACTIONS.—Nothing in this division 
shall be construed to affect the validity of any action taken 
or any contract entered into before the date specified in the 
regulations pursuant to section 4401(b)(3) except to the extent 
and in the manner prescribed in such regulations. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 679 
(2) 
RENEGOTIATION AND MODIFICATION OF PREEXISTING 
CONTRACTS.—Except as specifically provided in this division, 
nothing in this division shall be construed to require the renego-
tiation or modification of contracts in existence on the date 
of the enactment of this Act. 
(3) CONTINUED APPLICABILITY OF PREEXISTING LAW.—Except 
as otherwise provided in this division, a law amended by this 
division shall continue to be applied according to the provisions 
thereof as such law was in effect on the day before the date 
of the enactment of this Act until— 
(A) the date specified in final regulations implementing 
the amendment of that law (as promulgated pursuant to 
this section); or 
(B) if no such date is specified in regulations, January 
1, 1997. 
DIVISION E—INFORMATION 
TECHNOLOGY MANAGEMENT REFORM 
SEC. 5001. SHORT TITLE. 
This division may be cited 
Management Reform Act of 1996". 
SEC. 5002. DEFINITIONS. 
as the "Information Technology 
In this division: 
(1) DIRECTOR.—^The term "Director" means the Director 
of the Office of Management and Budget. 
(2) EXECUTIVE AGENCY.—^The term "executive agency" has 
the meaning given that term in section 4(1) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(1)). 
(3) INFORMATION TECHNOLOGY.—(A) The term "information 
technology", with respect to an executive agency means any 
equipment or interconnected system or subsystem of equipment, 
that is used in the automatic acquisition, storage, manipulation, 
management, movement, control, display, switching, inter-
change, transmission, or reception of data or information by 
the executive agency. For purposes of the preceding sentence, 
equipment is used by an executive agency if the equipment 
is used by the executive agency directly or is used by a contrac-
tor under a contract with the executive agency which (i) 
requires the use of such equipment, or (ii) requires the use, 
to a significant extent, of such equipment in the performance 
of a service or the furnishing of a product. 
(B) The term "information technology" includes computers, 
ancillary equipment, software, firmware and similar proce-
dures, services (including support services), and related 
resources. 
(C) Notwithstanding subparagraphs (A) and (B), the term 
"information technology" does not include any equipment that 
is acquired by a Federal contractor incidental to a Federal 
contract. 
(4) 
INFORMATION 
RESOURCES.—The term 
"information 
resources" has the meaning given such term in section 3502(6) 
of title 44, United States Code. 
Information 
Technology 
Management 
Reform Act of 
1996. 
40 u s e 1401 
note. 
40 u s e 1401. 
110 STAT. 680 
PUBLIC LAW 104-106—FEB. 10, 1996 
(5) 
INFORMATION RESOURCES MANAGEMENT.—The term 
"information resources management" has the meaning given 
such term in section 3502(7) of title 44, United States Code. 
(6) INFORMATION SYSTEM.—^The term "information system" 
has the meaning given such term in section 3502(8) of title 
44, United States Code. 
(7) COMMERCIAL ITEM.—The term "commercial item" has 
the meaning given that term in section 4(12) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 403(12)). 
TITLE LI—RESPONSIBILITY FOR ACQUI-
SITIONS 
OF 
INFORMATION 
TECH-
NOLOGY 
Subtitle A—General Authority 
SEC. 
5101. 
REPEAL 
OF 
CENTRAL 
AUTHORITY 
OF 
THE 
ADMINISTRATOR 
OF 
GENERAL 
SERVICES. 
Section 111 of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 759) is repealed. 
Subtitle B—Director of the Office of 
Management and Budget 
40 use 1411. 
40 u s e 1412. 
Public 
information. 
Reports. 
SEC. 5111. RESPONSIBILITY OF DIRECTOR. 
In fulfilling the responsibility to administer the functions 
assigned under chapter 35 of title 44, United States Code, the 
Director shall comply with this title with respect to the specific 
matters covered by this title. 
SEC. 5112. CAPITAL PLANNING AND INVESTMENT CONTROL. 
(a) FEDERAL INFORMATION TECHNOLOGY.—^The Director shall 
perform the responsibilities set forth in this section in fulfilling 
the responsibilities under section 3504(h) of title 44, United States 
Code. 
(b) USE OF INFORMATION TECHNOLOGY IN FEDERAL PRO-
GRAMS.—^The Director shall promote and be responsible for improv-
ing the acquisition, use, and disposal of information technology 
by the Federal Government to improve the productivity, efficiency, 
and effectiveness of Federal programs, including through dissemina-
tion of public information and the reduction of information collection 
burdens on the public. 
(c) USE OF BUDGET PROCESS.—The Director shall develop, as 
part of the budget process, a process for analyzing, tracking, and 
evaluating the risks and results of all major capital investments 
made by an executive agency for information systems. The process 
shall cover the life of each system and shall include explicit criteria 
for analyzing the projected and actual costs, benefits, and risks 
associated with the investments. At the same time that the Presi-
dent submits the budget for a fiscal year to Congress under section 
1105(a) of title 31, United States Code, the Director shall submit 
to Congress a report on the net program performance benefits 
achieved as a result of major capital investments made by executive 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 681 
agencies in information systems and how the benefits relate to 
the accompHshment of the goals of the executive agencies. 
(d) INFORMATION TECHNOLOGY STANDARDS.—The Director shall 
oversee the development and implementation of standards and 
guidelines pertaining to Federal computer systems by the Secretary 
of Commerce through the National Institute of Standards and Tech-
nology under section 5131 and section 20 of the National Institute 
of Standards and Technology Act (15 U.S.C. 278g-3). 
(e) DESIGNATION OF EXECUTIVE AGENTS FOR ACQUISITIONS.— 
The Director shall designate (as the Director considers appropriate) 
one or more heads of executive agencies as executive agent for 
Government-wide acquisitions of information technology. 
(f) USE OF BEST PRACTICES IN ACQUISITIONS.—The Director 
shall encourage the heads of the executive agencies to develop 
and use the best practices in the acquisition of information 
technology. 
(g) ASSESSMENT OF OTHER MODELS FOR MANAGING INFORMA-
TION TECHNOLOGY.—The Director shall assess, on a continuing 
basis, the experiences of executive agencies, State and local govern-
ments, international organizations, and the private sector in manag-
ing information technology. 
(h) 
COMPARISON OF AGENCY USES OF INFORMATION TECH-
NOLOGY.—^The Director shall compare the performances of the 
executive agencies in using information technology and shall 
disseminate the comparisons to the heads of the executive agencies. 
(i) TRAINING.—The Director shall monitor the development and 
implementation of training in information resources management 
for executive agency personnel. 
(j) INFORMING CONGRESS.—^The Director shall keep Congress 
fully informed on the extent to which the executive agencies are 
improving the performance of agency programs and the accomplish-
ment of agency missions through the use of the best practices 
in information resources management. 
(k) PROCUREMENT POLICY AND ACQUISITIONS OF INFORMATION 
TECHNOLOGY.—The Director shall coordinate the development and 
review by the Administrator of the Office of Information and Regu-
latory Affairs of policy associated with Federal acquisition of 
information technology with the Office of Federal Procurement Pol-
icy. 
SEC. 5113. PERFORMANCE-BASED AND RESULTS-BASED MANAGEMENT. 
40 USC 1413. 
(a) IN GENERAL.—^The Director shall encourage the use of 
performance-based and results-based management in fulfilling the 
responsibilities assigned under section 3504(h), of title 44, United 
States Code. 
(b) EVALUATION OF AGENCY PROGRAMS AND INVESTMENTS.— 
(1) 
REQUIREMENT.—The 
Director 
shall 
evaluate 
the 
information resources management practices of the executive 
agencies with respect to the performance and resulte of the 
investments made by the executive agencies in information 
technology. 
(2) DIRECTION FOR EXECUTIVE AGENCY ACTION.—The Direc-
tor shall issue to the head of each executive agency clear 
and concise direction that the head of such agency shall— 
(A) establish effective and efficient capital planning 
processes for selecting, managing, and evaluating the 
29-194 O - 96 - 23 : QL 3 Part 1 
110 STAT. 682 
PUBLIC LAW 104-106—FEB. 10, 1996 
results of all of its major investments in information sys-
tems; 
(B) determine, before making an investment in a new 
information system— 
(i) whether the function to be supported by the 
system should be performed by the private sector and, 
if so, whether any component of the executive agency 
performing that function should be converted from a 
governmental organization to a private sector organiza-
tion; or 
(ii) whether the function should be performed by 
the executive agency and, if so, whether the function 
should be performed by a private sector source under 
contract or by executive agency personnel; 
(C) analyze the missions of the executive agency and, 
based on the analysis, revise the executive agency's mis-
sion-related processes and administrative processes, as 
appropriate, before making significant investments in 
information technology to be used in support of those mis-
sions; and 
(D) ensure that the information security policies, proce-
dures, and practices are adequate. 
(3) GUIDANCE FOR MULTIAGENCY INVESTMENTS.—^The direc-
tion issued under paragraph (2) shall include guidance for 
undertaking efficiently and effectively interagency and Govern-
ment-wide investments in information technology to improve 
the accomplishment of missions that are common to the execu-
tive agencies. 
(4) PERIODIC REVIEWS.—The Director shall implement 
through the budget process periodic reviews of selected informa-
tion resources management activities of the executive agencies 
in order to ascertain the efficiency and effectiveness of informa-
tion technology in improving the performance of the executive 
agency and the accomplishment of the missions of the executive 
agency. 
(5) ENFORCEMENT OF ACCOUNTABILITY.— 
(A) IN GENERAL.—^The Director may take any author-
ized action that the Director considers 
appropriate, 
including an action involving the budgetary process or 
appropriations management process, to enforce accountabil-
ity of the head of an executive agency for information 
resources management and for the investments made by 
the executive agency in information technology. 
(B) SPECIFIC ACTIONS.—^Actions taken by the Director 
in the case of an executive agency may include— 
(i) recommending a reduction or an increase in 
any amount for information resources that the head 
of the executive agency proposes for the budget submit-
ted to Congress under section 1105(a) of title 31, United 
States Code; 
(ii) reducing or otherwise adjusting apportion-
ments and reapportionments of appropriations for 
information resources; 
(iii) using other authorized administrative controls 
over appropriations to restrict the availability of funds 
for information resources; and 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 683 
(iv) designating for the executive agency an execu-
tive agent to contract with private sector sources for 
the performance of information resources management 
or the acquisition of information technology. 
Subtitle C—Executive Agencies 
SEC. 5121. RESPONSIBILITIES. 
40 USC 1421. 
In fulfllHng the responsibiHties assigned under chapter 35 of 
title 44, United States Code, the head of each executive agency 
shall comply with this subtitle with respect to the specific matters 
covered by this subtitle. 
SEC. 5122. CAPITAL PLANNING AND INVESTMENT CONTROL. 
40 USC 1422. 
(a) DESIGN OF PROCESS.—In fulfilling the responsibilities 
assigned under section 3506(h) of title 44, United States Code, 
the head of each executive agency shall design and implement 
in the executive agency a process for maximizing the value and 
assessing and managing the risks of the information technology 
acquisitions of the executive agency. 
(b) CONTENT OF PROCESS.—The process of an executive agency 
shall— 
(1) provide for the selection of information technology 
investments to be made by the executive agency, the manage-
ment of such investments, and the evaluation of the results 
of such investments; 
(2) be integrated with the processes for making budget, 
financial, and program management decisions within the execu-
tive agency; 
(3) include minimum criteria to be applied in considering 
whether to undertake a particular investment in information 
systems, including criteria 
related to the 
quantitatively 
expressed projected net, risk-adjusted return on investment 
and specific quantitative and qualitative criteria for comparing 
and prioritizing alternative information systems investment 
projects; 
(4) provide for identifying information systems investments 
that would result in shared benefits or costs for other Federal 
agencies or State or local governments; 
(5) provide for identifying for a proposed investment quan-
tifiable measurements for determining the net benefits and 
risks of the investment; and 
(6) provide the means for senior management personnel 
of the executive agency to obtain timely information regarding 
the progress of an investment in an information system, includ-
ing a system of milestones for measuring progress, on an 
independently verifiable basis, in terms of cost, capability of 
the system to meet specified requirements, timeliness, and 
quality. 
SEC. 5123. PERFORMANCE AND RESULTS-BASED MANAGEMENT. 
40 USC 1423. 
In fulfilling the responsibilities under section 3506(h) of title 
44, United States Code, the head of an executive agency shall— 
(1) establish goals for improving the efficiency and effective-
ness of agency operations and, as appropriate, the delivery 
of services to the public through the effective use of information 
technology; 
110 STAT. 684 
PUBLIC LAW 104-106—FEB. 10, 1996 
Reports. 
(2) prepare an annual report, to be included in the executive 
agency's budget submission to Congress, on the progress in 
achieving the goals; 
(3) ensure that performance measurements are prescribed 
for information technology used by or to be acquired for, the 
executive agency and that the performance measurements 
measure how well the information technology supports pro-
grams of the executive agency; 
(4) where comparable processes and organizations in the 
public or private sectors exist, quantitatively benchmark agency 
process performance against such processes in terms of cost, 
speed, productivity, and quality of outputs and outcomes; 
(5) analyze the missions of the executive agency and, based 
on the analysis, revise the executive agency's mission-related 
processes and administrative processes as appropriate before 
making significant investments in information technology that 
is to be used in support of the performance of those missions; 
and 
(6) ensure that the information security policies, proce-
dures, and practices of the executive agency are adequate. 
40 use 1424. 
SEC. 5124. ACQUISITIONS OF INFORMATION TECHNOLOGY. 
(a) IN GENERAL.—^The authority of the head of an executive 
agency to conduct an acquisition of information technology includes 
the following authorities: 
(1) To acquire information technology as authorized by 
law. 
(2) To enter into a contract that provides for multiagency 
acquisitions of information technology in accordance with guid-
ance issued by the Director. 
(3) If the Director finds that it would be advantageous 
for the Federal Government to do so, to enter into a multiagency 
contract for procurement of commercial items of information 
technology that requires each executive agency covered by the 
contract, when procuring such items, either to procure the 
items under that contract or to justify an alternative procure-
ment of the items. 
(b) FTS 2000 PROGRAM.—Notwithstanding any other provision 
of this or any other law, the Administrator of General Services 
shall continue to manage the FTS 2000 program, and to coordinate 
the follow-on to that program, on behalf of and with the advice 
of the heads of executive agencies. 
40 use 1425. 
SEC. 5125. AGENCY CfflEF INFORMATION OFFICER. 
(a) DESIGNATION OF CHIEF INFORMATION OFFICERS.—Section 
3506 of title 44, United States Code, is amended— 
(1) in subsection (a)— 
(A) in paragraph (2)(A), by striking out "senior official" 
and inserting in lieu thereof "Chief Information Officer"; 
(B) in paragraph (2)(B)— 
(i) by striking out "senior officials" in the first 
sentence and inserting in lieu thereof "Chief Informa-
tion Officers"; 
(ii) by striking out "official" in the second sentence 
and inserting in lieu thereof "Chief Information Offi-
cer"; and 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 685 
(iii) by striking out "officials" in the second sen-
tence and inserting in lieu thereof "Chief Information 
Officers"; and 
(C) in paragraphs (3) and (4), by striking out "senior 
official" each place it appears and inserting in lieu thereof 
"Chief Information Officer"; and 
(2) in subsection (c)(1), by striking out "official" in the 
matter preceding subparagraph (A) and inserting in lieu thereof 
"Chief Information Officer". 
(b) GENERAL RESPONSIBILITIES.—^The Chief Information Officer 
of an executive agency shall be responsible for— 
(1) providing advice and other assistance to the head of 
the executive agency and other senior management personnel 
of the executive agency to ensure that information technology 
is acquired and information resources are managed for the 
executive agency in a manner that implements the policies 
and procedures of this division, consistent with chapter 35 
of title 44, United States Code, and the priorities established 
by the head of the executive agency; 
(2) 
developing, 
maintaining, 
and 
facilitating 
the 
implementation of a sound and integrated information tech-
nology architecture for the executive agency; and 
(3) promoting the effective and efficient design and oper-
ation of all major information resources management processes 
for the executive agency, including improvements to work proc-
esses of the executive agency. 
(c) DUTIES AND QUALIFICATIONS.—The Chief Information Officer 
of an agency that is listed in section 901(b) of title 31, United 
States Code, shall— 
(1) have information resources management duties as that 
official's primary duty; 
(2) monitor the performance of information technology pro-
grams of the agency, evaluate the performance of those 
programs on the basis of the applicable performance measure-
ments, and advise the head of the agency regarding whether 
to continue, modify, or terminate a program or project; and 
(3) annually, as part of the strategic planning and perform-
ance evaluation process required (subject to section 1117 of 
title 31, United States Code) under section 306 of title 5, 
United States Code, and sections 1105(a)(29), 1115, 1116, 1117, 
and 9703 of title 31, United States Code— 
(A) assess the requirements established for agency 
personnel regarding knowledge and skill in information 
resources management and the adequacy of such require-
ments for facilitating the achievement of the performance 
goals established for information resources management; 
(B) assess the extent to which the positions and person-
nel at the executive level of the agency and the positions 
and personnel at management level of the agency below 
the executive level meet those requirements; 
(C) in order to rectify any deficiency in meeting those 
requirements, develop strategies and specific plans for hir-
ing, training, and professional development; and 
(D) report to the head of the agency on the progress Reports, 
made in improving information resources management 
capability. 
110 STAT. 686 
PUBLIC LAW 104-106~FEB. 10, 1996 
(d) 
INFORMATION TECHNOLOGY ARCHITECTURE DEFINED.—In 
this section, the term "information technology architecture", with 
respect to an executive agency, means an integrated framework 
for evolving or maintaining existing information technology and 
acquiring new information technology to achieve the agency's strate-
gic goals and information resources management goals. 
(e) EXECUTIVE LEVEL IV.—Section 5315 of title 5, United States 
Code, is amended by adding at the end the following: 
"Chief Information Officer, Department of Agriculture. 
"Chief Information Officer, Department of Commerce. 
"Chief Information Officer, Department of Defense (unless 
the official designated as the Chief Information Officer of the 
Department of Defense is an official listed under section 5312, 
5313, or 5314 of this title). 
"Chief Information Officer, Department of Education. 
"Chief Information Officer, Department of Energy. 
"Chief Information Officer, Department of Health and 
Human Services. 
"Chief Information Officer, Department of Housing and 
Urban Development. 
"Chief Information Officer, Department of Interior. 
"Chief Information Officer, Department of Justice. 
"Chief Information Officer, Department of Labor. 
"Chief Information Officer, Department of State. 
"Chief Information Officer, Department of Transportation. 
"Chief Information Officer, Department of Treasury. 
"Chief Information Officer, Department of Veterans Affairs. 
"Chief 
Information 
Officer, 
Environmental 
Protection 
Agency. 
"Chief Information Officer, National Aeronautics and Space 
Administration. 
"Chief Information Officer, Agency for International Devel-
opment. 
"Chief Information Officer, Federal Emergency Manage-
ment Agency. 
"Chief Information Officer, General Services Administra-
tion. 
"Chief Information Officer, National Science Foundation. 
"Chief Information Officer, Nuclear Regulatory Agency. 
"Chief Information Officer, Office of Personnel Manage-
ment. 
"Chief Information Officer, Small Business Administra-
tion.". 
40USCI426. 
SEC. 5126. ACCOUNTABILITY. 
The head of each executive agency, in consultation with the 
Chief Information Officer and the Chief Financial Officer of that 
executive agency (or, in the case of an executive agency without 
a Chief Financial Officer, any comparable official), shall establish 
policies and procedures that— 
(1) ensure that the accounting, financial, and asset manage-
ment systems and other information systems of the executive 
agency are designed, developed, maintained, and used effec-
tively to provide financial or program performance data for 
financial statements of the executive agency; 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 687 
(2) ensure that financial and related program performance 
data are provided on a reliable, consistent, and timely basis 
to executive agency financial management systems; and 
(3) ensure that financial statements support— 
(A) assessments and revisions of mission-related proc-
esses and administrative processes of the executive agency; . 
and 
(B) performance measurement of the performance in 
the case of investments made by the agency in information 
systems. 
SEC. 5127. SIGNIFICANT DEVIATIONS. 
40 USC 1427. 
The head of an executive agency shall identify in the strategic 
information resources management plan required under section 
3506(b)(2) of title 44, United States Code, any major information 
technology acquisition program, or any phase or increment of such 
a program, that has significantly deviated from the cost, perform-
ance, or schedule goals established for the program. 
SEC. 5128. INTERAGENCY SUPPORT. 
40 USC 1428. 
Funds available for an executive agency for oversight, acquisi-
tion, and procurement of information technology may be used by 
the head of the executive agency to support jointly with other 
executive agencies the activities of interagency groups that are 
established to advise the Director in carrying out the Director's 
responsibilities under this title. The use of such funds for that 
purpose shall be subject to such requirements and limitations on 
uses and amounts as the Director may prescribe. The Director 
shall prescribe any such requirements and limitations during the 
Director's review of the executive agency's proposed budget submit-
ted to the Director by the head of the executive agency for purposes 
of section 1105 of title 31, United States Code. 
Subtitle D—Other Responsibilities 
SEC. 5131. RESPONSIBILITIES REGARDING EFFICIENCY, SECURITY, 
40 USC 1441. 
AND PRIVACY OF FEDERAL COMPUTER SYSTEMS. 
(a) STANDARDS AND GUIDELINES.— 
(1) AUTHORITY.—^The Secretary of Commerce shall, on the 
basis of standards and guidelines developed by the National 
Institute of Standards and Technology pursuant to paragraphs 
(2) and (3) of section 20(a) of the National Institute of Standards 
and Technology Act (15 U.S.C. 278g-3(a)), promulgate stand-
ards and guidelines pertaining to Federal computer systems. 
The Secretary shall make such standards compulsory and bind-
ing to the extent to which the Secretary determines necessary 
to improve the efficiency of operation or security and privacy 
of Federal computer systems. The President may disapprove 
or modify such standards and guidelines if the President deter-
mines such action to be in the public interest. The President's 
authority to disapprove or modify such standards and guidelines 
may not be delegated. Notice of such disapproval or modification 
Federal Register, 
shall be published promptly in the Federal Register. Upon publication. 
receiving notice of such disapproval or modification, the Sec-
retary of Commerce shall immediately rescind or modify such 
standards or guidelines as directed by the President. 
110 STAT. 688 
PUBLIC LAW 104-106—FEB. 10, 1996 
Federal Register, 
publication. 
(2) EXERCISE OF AUTHORITY.—The authority conferred upon 
the Secretary of Commerce by this section shall be exercised 
subject to direction by the President and in coordination with 
the Director to ensure fiscal and policy consistency. 
(b) APPLICATION OF MORE STRINGENT STANDARDS.—The head 
of a Federal agency may employ standards for the cost-effective 
security and privacy of sensitive information in a Federal computer 
system within or under the supervision of that agency that are 
more stringent than the standards promulgated by the Secretary 
of Commerce under this section, if such standards contain, at a 
minimum, the provisions of those applicable standards made 
compulsory and binding by the Secretary of Commerce. 
(c) WAIVER OF STANDARDS.—^The standards determined under 
subsection (a) to be compulsory and binding may be waived by 
the Secretary of Commerce in writing upon a determination that 
compliance would adversely affect the accomplishment of the mis-
sion of an operator of a Federal computer system, or cause a 
major adverse financial impact on the operator which is not offset 
by Government-wide savings. The Secretary may delegate to the 
head of one or more Federal agencies authority to waive such 
standards to the extent to which the Secretary determines such 
action to be necessary and desirable to allow for timely and effective 
implementation of Federal computer system standards. The head 
of such agency may redelegate such authority only to a Chief 
Information Officer designated pursuant to section 3506 of title 
44, United States Code. Notice of each such waiver and delegation 
shall be transmitted promptly to Congress and shall be published 
promptly in the Federal Register. 
(d) DEFINITIONS.—In this section, the terms "Federal computer 
system" and "operator of a Federal computer system" have the 
meanings given such terms in section 20(d) of the National Institute 
of Standards and Technology Act (15 U.S.C. 278g-3(d)). 
(e) TECHNICAL AMENDMENTS.—Chapter 35 of title 44, United 
States Code, is amended— 
(1) in section 3504(g)— 
(A) in paragraph (2), by striking out "the Computer 
Security Act of 1987 (40 U.S.C. 759 note)" and inserting 
in lieu thereof "sections 20 and 21 of the National Institute 
of Standards and Technology Act (15 U.S.C. 278g-3 and 
278g-4), section 5131 of the Information 
Technology 
Management Reform Act of 1996, and sections 5 and 6 
of the Computer Security Act of 1987 (40 U.S.C. 759 note)"; 
and 
(B) in paragraph (3), by striking out "the Computer 
Security Act of 1987 (40 U.S.C. 759 note)" and inserting 
in lieu thereof "the standards and guidelines promulgated 
under section 5131 of the Information Technology Manage-
ment Reform Act of 1996 and sections 5 and 6 of the 
Computer Security Act of 1987 (40 U.S.C. 759 note)"; and 
(2) in section 3518(d), by striking out "Public Law 89-
306 on the Administrator of the General Services Administra-
tion, the Secretary of Commerce, or" and inserting in lieu 
thereof "section 5131 of the Information Technology Manage-
ment Reform Act of 1996 and the Computer Security Act of 
1987 (40 U.S.C. 759 note) on the Secretary of Commerce or". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 689 
SEC. 5132. SENSE OF CONGRESS. 
40 USC 1442. 
It is the sense of Congress that, during the next five-year 
period beginning with 1996, executive agencies should achieve each 
year at least a 5 percent decrease in the cost (in constant fiscal 
year 1996 dollars) that is incurred by the agency for operating 
-
and maintaining information technology, and each year a 5 percent 
increase in the efficiency of the agency operations, by reason of 
improvements in information resources management by the agency. 
Subtitle E—National Security Systems 
SEC. 5141. APPLICABILITY TO NATIONAL SECURITY SYSTEMS. 
40 USC 1451. 
(a) IN GENERAL.—Except as provided in subsection (b), this 
title does not apply to national security systems. 
(b) EXCEPTIONS.— 
(1) IN GENERAL.—Sections 5123, 5125, and 5126 apply to 
national security systems. 
(2) 
CAPITAL PLANNING AND INVESTMENT CONTROL.—The 
heads of executive agencies shall apply sections 5112 and 5122 
to national security systems to the extent practicable. 
(3) 
PERFORMANCE AND RESULTS OF INFORMATION TECH-
NOLOGY INVESTMENTS.—(A) Subject to subparagraph (B), the 
heads of executive agencies shall apply section 5113 to national 
security systems to the extent practicable. 
(B) National security systems shall be subject to section 
5113(b)(5) except for subparagraph (B)(iv) of that section. 
SEC. 5142. NATIONAL SECURITY SYSTEM DEFINED. 
40 USC 1452. 
(a) DEFINITION.—In this subtitle, the term "national security 
system" means any telecommunications or information system oper-
ated by the United States Government, the function, operation, 
or use of which— 
\ 
(1) involves intelligence activities; 
^ 
(2) involves cryptologic activities related to national 
security; 
(3) involves command and control of military forces; 
(4) involves equipment that is an integral part of a weapon 
or weapons system; or 
(5) subject to subsection (b), is critical to the direct fulfill-
ment of military or intelligence missions. 
(b) LIMITATION.—Subsection (a)(5) does not include a system 
that is to be used for routine administrative and business applica-
tions (including payroll, finance, logistics, and personnel manage-
ment applications). 
TITLE 
LII—PROCESS 
FOR 
ACQUISI-
TIONS 
OF 
INFORMATION 
TECH-
NOLOGY 
SEC. 5201. PROCUREMENT PROCEDURES. 
40 USC 1461. 
The Federal Acquisition Regulatory Council shall ensure that, 
to the maximum extent practicable, the process for acquisition 
of information technology is a simplified, clear, and understandable 
process that specifically addresses the management of risk. 
110 STAT. 690 
PUBLIC LAW 104-106—FEB. 10, 1996 
incremental acquisitions, and the need to incorporate commercial 
information technology in a timely manner. 
SEC. 5202. INCREMENTAL 
ACQUISITION 
OF INFORMATION 
TECH-
NOLOGY. 
(a) POLICY.—The Office of Federal Procurement Policy Act (41 
U.S.C. 401 et seq.) is amended by adding at the end the following 
new section: 
41 use 434. 
"SEC. 35. MODULAR CONTRACTING FOR INFORMATION TECHNOLOGY. 
"(a) IN GENERAL.—^The head of an executive agency should, 
to the maximum extent practicable, use modular contracting for 
an acquisition of a major system of information technology. 
"(b) 
MODULAR 
CONTRACTING DESCRIBED.—Under 
modular 
contracting, an executive agency's need for a system is satisfied 
in successive acquisitions of interoperable increments. Each incre-
ment complies with common or commercially accepted standards 
applicable to information technology so that the increments are 
compatible with other increments of information 
technology 
comprising the system. 
"(c) IMPLEMENTATION.—^The Federal Acquisition Regulation 
shall provide that— 
"(1) under the modular contracting process, an acquisition 
of a major system of information technology may be divided 
into several smaller acquisition increments that— 
' 
"(A) are easier to manage individually than would be 
one comprehensive acquisition; 
"(B) address complex information technology objectives 
incrementally in order to enhance the likelihood of achiev-
ing workable solutions for attainment of those objectives; 
"(C) provide for delivery, implementation, and testing 
of workable systems or solutions in discrete increments 
each of which comprises a system or solution that is not 
dependent on any subsequent increment in order to perform 
its principal functions; and 
' 
"(D) provide an opportunity for subsequent increments 
of the acquisition to take advantage of any evolution in 
technology or needs that occur during conduct of the earlier 
increments; 
"(2) a contract for an increment of an information tech-
nology acquisition should, to the maximum extent practicable, 
be awarded within 180 days after the date on which the solicita-
tion is issued and, if the contract for that increment cannot 
^ 
be awarded within such period, the increment should be consid-
ered for cancellation; and 
"(3) the information technology provided for in a contract 
for acquisition of information technology should be delivered 
within 18 months after the date on which the solicitation result-
ing in award of the contract was issued.". 
(b) CLERICAL AMENDMENT.—The table of contents in section 
Kb) of such Act is amended by inserting after the item relating 
to section 34 the following new item: 
"Sec. 35. Modular contracting for information technology.". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 691 
TITLE 
LIII—INFORMATION 
TECH-
NOLOGY ACQUISITION PILOT PRO-
GRAMS 
Subtitle A—Conduct of Pilot Programs 
SEC. 5301. AUTHORITY TO CONDUCT PILOT PROGRAMS. 
40 USC 1471. 
(a) IN GENERAL.— 
(1) PURPOSE.—The Administrator for Federal Procurement 
Policy (hereinafter referred to as the "Administrator"), in con-
sultation with the Administrator for the Office of Information 
and Regulatory Affairs, may conduct pilot programs in order 
to test alternative approaches for acquisition of information 
technology by executive agencies. 
(2) MULTIAGENCY, MULTI-ACTIVITY CONDUCT OF EACH PRO-
GRAM.—Except as otherwise provided in this title, each pilot 
program conducted under this title shall be carried out in 
not more than two procuring activities in each of the executive 
agencies that are designated by the Administrator in accordance 
with this title to carry out the pilot program. The head of 
each designated executive agency shall, with the approval of 
the Administrator, select the procuring activities of the execu-
tive agency that are to participate in the test and shall des-
ignate a procurement testing official who shall be responsible 
for the conduct and evaluation of the pilot program within 
the executive agency. 
(b) LIMITATIONS.— 
(1) NUMBER.—Not more than two pilot programs may be 
conducted under the authority of this title, including one pilot 
program each pursuant to the requirements of sections 5311 
and 5312. 
(2) AMOUNT.—The total amount obligated for contracts 
entered into under the pilot programs conducted under the 
authority of this title may not exceed $750,000,000. The 
Administrator shall monitor such contracts and ensure that 
contracts are not entered into in violation of the limitation 
in the preceding sentence. 
(c) PERIOD OF PROGRAMS.— 
(1) IN GENERAL.—Subject to paragraph (2), any pilot pro-
gram may be carried out under this title for the period, not 
in excess of five years, that is determined by the Administrator 
as being sufficient to establish reliable results. 
(2) 
CONTINUING 
VALIDITY 
OF CONTRACTS.—^A contract 
entered into under the pilot program before the expiration 
of that program shall remain in effect according to the terms 
of the contract after the expiration of the program. 
SEC. 5302. EVALUATION CRITERIA AND PLANS. 
40 USC 1472. 
(a) MEASURABLE TEST CRITERIA.—The head of each executive 
agency conducting a pilot program under section 5301 shall estab-
lish, to the maximum extent practicable, measurable criteria for 
evaluating the effects of the procedures or techniques to be tested 
under the program. 
(b) TEST PLAN.—Before a pilot program may be conducted under 
section 5301, the Administrator shall submit to Congress a detailed 
110 STAT. 692 
PUBLIC LAW 104-106—FEB. 10, 1996 
test plan for the program, including a detailed description of the 
procedures to be used and a list of any regulations that are to 
be waived. 
40 use 1473. 
SEC. 5303. REPORT. 
(a) REQUIREMENT.—Not later than 180 days after the comple-
tion of a pilot program under this title, the Administrator shall— 
(1) submit to the Director a report on the results and 
findings under the program; and 
(2) provide a copy of the report to Congress. 
(b) CONTENT.—The report shall include the following: 
(1) A detailed description of the results of the program, 
as measured by the criteria established for the program. 
(2) A discussion of any legislation that the Administrator 
recommends, or changes in regulations that the Administrator 
considers necessary, in order to improve overall information 
resources management within the Federal Government. 
40 use 1474. 
SEC. 5304. RECOMMENDED LEGISLATION. 
If the Director determines that the results and findings under 
a pilot program under this title indicate that legislation is necessary 
or desirable in order to improve the process for acquisition of 
information technology, the Director shall transmit the Director's 
recommendations for such legislation to Congress. 
40 use 1475. 
SEC. 5305. RULE OF CONSTRUCTION. 
Nothing in this title shall be construed as authorizing the 
appropriation or obligation of funds for the pilot programs author-
ized under this title. 
Subtitle B—Specific Pilot Programs 
40 use 1491. 
SEC. 5311. SHARE-IN-SAVINGS PILOT PROGRAM. 
(a) REQUIREMENT.—^The Administrator may authorize the heads 
of two executive agencies to carry out a pilot program to test 
the feasibility of— 
(1) contracting on a competitive basis with a private sector 
source to provide the Federal Government with an information 
technology solution for improving mission-related or adminis-
trative processes of the Federal Government; and 
(2) paying the private sector source an amount equal to 
a portion of the savings derived by the Federal Government 
from any improvements in mission-related processes and 
administrative processes that result from implementation of 
the solution. 
(b) LIMITATIONS.—^The head of an executive agency authorized 
to carry out the pilot program may, under the pilot program, carry 
out one project and enter into not more than five contracts for 
the project. 
(c) SELECTION OF PROJECTS.—^The projects shall be selected 
by the Administrator, in consultation with the Administrator for 
the Office of Information and Regulatory Afiairs. 
40 use 1492. 
SEC. 5312. SOLUTIONS-BASED CONTRACTING PILOT PROGRAM. 
(a) IN GENERAL.—The Administrator may authorize the heads 
of any of the executive agencies, in accordance with subsection 
(d)(2), to carry out a pilot program to test the feasibility of using 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 693 
solutions-based contracting for acquisition of information tech-
nology. 
(b) SOLUTIONS-BASED CONTRACTING DESCRIBED.—For purposes 
of this section, solutions-based contracting is an acquisition method 
under which the acquisition objectives are defined by the Federal 
Government user of the technology to be acquired, a streamlined 
contractor selection process is used, and industry sources are 
allowed to provide solutions that attain the objectives effectively. 
(c) PROCESS REQUIREMENTS.—The Administrator shall require 
use of a process with the following aspects for acquisitions under 
the pilot program: 
(1) 
ACQUISITION PLAN EMPHASIZING DESIRED RESULT.— 
Preparation of an acquisition plan that defines the functional 
requirements of the intended users of the information tech-
nology to be acquired, identifies the operational improvements 
to be achieved, and defines the performance measurements 
to be applied in determining whether the information tech-
nology acquired satisfies the defined requirements and attains 
the identified results. 
(2) 
RESULTS-ORIENTED STATEMENT OF WORK.—Use of 
a 
statement of work that is limited to an expression of the end 
results or performance capabilities desired under the acquisi-
tion plan. 
(3) 
SMALL ACQUISITION ORGANIZATION.—^Assembly of 
a 
small acquisition organization consisting of the following: 
(A) An acquisition management team, the members 
, 
of which are to be evaluated and rewarded under the 
pilot program for contributions toward attainment of the . 
desired results identified in the acquisition plan. 
(B) A small source selection team composed of rep-
resentatives of the specific mission or administrative area 
to be supported by the information technology to be 
acquired, together with a contracting officer and persons 
with relevant expertise. 
(4) 
USE 
OF SOURCE SELECTION FACTORS EMPHASIZING 
SOURCE QUALIFICATIONS AND COSTS.—Use of source selection 
factors that emphasize— 
(A) the qualifications of the offeror, including such 
factors as personnel skills, previous experience in providing 
other private or public sector organizations with solutions 
for attaining objectives similar to the objectives of the -
acquisition, past contract performance, qualifications of the %
. 
proposed program manager, and the proposed management 
plan; and 
(B) the costs likely to be associated with the conceptual 
. 
approach proposed by the offeror. 
(5) 
OPEN COMMUNICATIONS WITH CONTRACTOR COMMU-
NITY.—Open availability of the following information to poten-
tial offerors: 
(A) The agency mission to be served by the acquisition. 
(B) The functional process to be performed by use 
of information technology. 
(C) The process improvements to be attained. 
(6) SIMPLE SOLICITATION.—Use of a simple solicitation that 
. 
. 
sets forth only the functional work description, the source selec-
tion factors to be used in accordance with paragraph (4), the 
required terms and conditions, instructions regarding submis-
110 STAT. 694 
PUBLIC LAW 104-106—FEB. 10, 1996 
sion of offers, and the estimate of the Federal Government's 
budget for the desired work. 
(7) SIMPLE PROPOSALS.—Submission of oral presentations 
and written proposals that are limited in size and scope and 
contain information on— 
(A) the offeror's qualifications to perform the desired 
work; 
(B) past contract performance; 
(C) the proposed conceptual approach; and 
(D) the costs likely to be associated with the proposed 
conceptual approach. 
(8) SIMPLE EVALUATION.—Use of a simplified evaluation 
process, to be completed within 45 days after receipt of propos-
als, which consists of the following: 
(A) Identification of the most qualified offerors that 
are within the competitive range. 
(B) Issuance of invitations for at least three and not 
more than five of the identified offerors to make oral 
presentations to, and engage in discussions with, the 
evaluating personnel regarding, for each offeror— 
(i) the qualifications of the offeror, including how 
the qualifications of the offeror relate to the approach 
proposed to be taken by the offeror in the acquisition; 
and 
(ii) the costs likely to be associated with the 
approach. 
(C) Evaluation of the qualifications of the identified 
offerors and the costs likely to be associated with the 
offerors' proposals on the basis of submissions required 
under the process and any oral presentations made by, 
and any discussions with, the offerors. 
(9) SELECTION OF MOST QUALIFIED OFFEROR.—^A selection 
process consisting of the following: 
(A) Identification of the most qualified source, and 
ranking of alternative sources, primarily on the basis of 
the oral proposals, presentations, and discussions, and writ-
ten proposals submitted in accordance with paragraph (7). 
(B) Conduct for 30 to 60 days of a program definition 
phase (funded, in the case of the source ultimately awarded 
the contract, by the Federal Government)— 
(i) during which the selected source, in consulta-
tion with one or more intended users, develops a 
conceptual system design and technical approach, 
defines logical phases for the project, and estimates 
the total cost and the cost for each phase; and 
(ii) after which a contract for performance of the 
work may be awarded to that source on the basis 
of cost, the responsiveness, reasonableness, and quality 
of the proposed performance, and a sharing of risk 
and benefits between the source and the Government. 
(C) Conduct of as many successive program definition 
phases with alternative sources (in the order ranked) as 
is necessary in order to award a contract in accordance 
with subparagraph (B). 
(10) 
SYSTEM 
IMPLEMENTATION 
PHASING.—System 
implementation to be executed in phases that are tailored to 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 695 
the solution, with various contract arrangements being used, 
as appropriate, for various phases and activities. 
(11) MUTUAL AUTHORITY TO TERMINATE.—^Authority for the 
Federal Government or the contractor to terminate the contract 
without penalty at the end of any phase defined for the project. 
(12) 
TIME 
MANAGEMENT DISCIPLINE.—^Application of 
a 
standard for awarding a contract within 105 to 120 days after 
issuance of the solicitation. 
(d) PILOT PROGRAM DESIGN.— 
(1) JOINT PUBLIC-PRIVATE WORKING GROUP.—The Adminis-
trator, in consultation with the Administrator for the Office 
of Information and Regulatory Affairs, shall establish a joint 
working group of Federal Government personnel and represent-
atives of the information technology industry to design a plan 
for conduct of any pilot program carried out under this section. 
(2) CONTENT OF PLAN.—The plan shall provide for use 
of solutions-based contracting in the Department of Defense 
and not more than two other executive agencies for a total 
of— 
(A) not more than 10 projects, each of which has an 
estimated cost of between $25,000,000 and $100,000,000; 
and 
(B) not more than 10 projects, each of which has an 
estimated cost of between $1,000,000 and $5,000,000, to 
be set aside for small business concerns. 
(3) COMPLEXITY OF PROJECTS.—(A) Subject to subparagraph 
(C), each acquisition project under the pilot program shall 
be sufficiently complex to provide for meaningful evaluation 
of the use of solutions-based contracting for acquisition of 
information technology for executive agencies. 
(B) In order for an acquisition project to satisfy the require-
ment in subparagraph (A), the solution for attainment of the 
executive agency's objectives under the project should not be 
obvious, but rather shall involve a need for some innovative 
development and systems integration. 
(C) An acquisition project should not be so extensive or 
lengthy as to result in undue delay in the evaluation of the 
use of solutions-based contracting. 
(e) MONITORING BY GAO.—The Comptroller General of the 
United States shall— 
(1) monitor the conduct, and review the results, of acquisi-
tions under the pilot program; and 
(2) submit to Congress periodic reports containing the views Reports. 
of the Comptroller General on the activities, results, and find-
ings under the pilot program. 
TITLE LIV—ADDITIONAL INFORMATION 
RESOURCES MANAGEMENT MATTERS 
SEC. 5401. ON-LINE MULTIPLE AWARD SCHEDULE CONTRACTING. 
40 USC 1501. 
(a) AUTOMATION OF MULTIPLE AWARD SCHEDULE CONTRACT-
ING.—In order to provide for the economic and efficient procurement 
of information technology and other commercial items, the Adminis-
trator of General Services shall provide through the Federal Acquisi-
tion Computer Network (in this section referred to as "FACNET"), 
not later than January 1, 1998, Government-wide on-line computer 
110 STAT. 696 
PUBLIC LAW 104-106—FEB. 10, 1996 
access to information on products and services that are available 
for ordering under the multiple award schedules. If the Adminis-
trator determines it is not practicable to provide such access through 
FACNET, the Administrator shall provide such access through 
another automated system that has the capability to perform the 
functions listed in subsection (b)(1) and meets the requirement 
of subsection (b)(2). 
(b) ADDITIONAL FACNET FUNCTIONS.—(1) In addition to the 
functions specified in section 30(b) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 426(b)), the FACNET architecture shall 
have the capability to perform the following functions: 
(A) Provide basic information on prices, features, and 
performance of all products and services available for ordering 
through the multiple award schedules. 
(B) Provide for updating that information to reflect changes 
in prices, features, and performance as soon as information 
on the changes becomes available. 
(C) Enable users to make on-line computer comparisons 
of the prices, features, and performance of similar products 
and services offered by various vendors. 
(2) The FACNET architecture shall be used to place orders 
under the multiple award schedules in a fiscal year for an amount 
equal to at least 60 percent of the total amount spent for all 
orders under the multiple award schedules in that fiscal year. 
(c) STREAMLINED PROCEDURES.— 
(1) PILOT PROGRAM.—Upon certification by the Adminis-
trator of General Services that the FACNET architecture meets 
the requirements of subsection (b)(1) and was used as required 
by subsection (b)(2) in the fiscal year preceding the fiscal year 
in which the certification is made, the Administrator for Federal 
Procurement Policy may establish a pilot program to test 
streamlined procedures for the procurement of information tech-
nology products and services available for ordering through 
the multiple award schedules. 
(2) APPLICABILITY TO MULTIPLE AWARD SCHEDULE CON-
TRACTS.—Except as provided in paragraph (4), the pilot program 
shall be applicable to all multiple award schedule contracts 
for the purchase of information technology and shall test the 
following procedures: 
(A) A procedure under which negotiation of the terms 
and conditions for a covered multiple award schedule con-
tract is limited to terms and conditions other than price. 
(B) A procedure under which the vendor establishes 
the prices under a covered multiple award schedule con-
tract and may adjust those prices at any time in the 
discretion of the vendor. 
(C) A procedure under which a covered multiple award 
schedule contract is awarded to any responsible offeror 
that— 
(i) has a suitable record of past performance, which 
may include past performance on multiple award 
schedule contracts; 
(ii) agrees to terms and conditions that the 
Administrator determines as being required by law 
or as being appropriate for the purchase of commercial 
items; and 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 697 
(iii) agrees to establish and update prices, features, 
and performance and to accept orders electronically 
through the automated system established pursuant 
to subsection (a). 
(3) COMPTROLLER GENERAL REVIEW AND REPORT.—(A) Not 
later than three years after the date on which the pilot program 
is established, the Comptroller General of the United States 
shall review the pilot program and report to the Congress 
on the results of the pilot program. 
(B) The report shall include the following: 
(i) An evaluation of the extent to which there is com-
petition for the orders placed under the pilot program. 
(ii) The effect that the streamlined procedures under 
the pilot program have on prices charged under multiple 
award schedule contracts. 
(iii) The effect that such procedures have on paperwork 
requirements for multiple award schedule contracts and 
orders. 
(iv) The impact of the pilot program on small 
businesses and socially and economically disadvantaged 
small businesses. 
(4) WITHDRAWAL OF SCHEDULE OR PORTION OF SCHEDULE 
FROM PILOT PROGRAM.—The Administrator may withdraw a 
multiple award schedule or portion of a schedule from the 
pilot program if the Administrator determines that (A) price 
competition is not available under such schedule or portion 
thereof, or (B) the cost to the Government for that schedule 
or portion thereof for the previous year was higher than it 
would have been if the contracts for such schedule or portion 
thereof had been awarded using procedures that would apply 
if the pilot program were not in effect. The Administrator 
Notification. 
shall notify Congress at least 30 days before the date on which 
the Administrator withdraws a schedule or portion thereof 
under this paragraph. The authority under this paragraph may 
not be delegated. 
(5) TERMINATION OF PILOT PROGRAM.—Unless reauthorized 
by law, the authority of the Administrator to award contracts 
under the pilot program shall expire four years after the date 
on which the pilot program is established. Contracts entered 
into before the authority expires shall remain in effect in accord-
ance with their terms notwithstanding the expiration of the 
authority to award new contracts under the pilot program. 
(d) DEFINITION.—In this section, the term "FACNET" means 
the Federal Acquisition Computer Network established under sec-
tion 30 of the Office of Federal Procurement Policy Act (41 U.S.C. 
426). 
SEC. 5402. IDENTIFICATION OF EXCESS AND SURPLUS COMPUTER 
40 USC 1502. 
EQUIPMENT. 
Not later than six months after the date of the enactment 
of this Act, the head of an executive agency shall inventory all 
computer equipment under the control of that official. After comple-
tion of the inventory, the head of the executive agency shall main-
tain, in accordance with title II of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481 et seq.), an 
inventory of any such equipment that is excess or surplus property. 
110 STAT. 698 
PUBLIC LAW 104-106—FEB. 10, 1996 
40 u s e 1503. 
SEC. 5403. ACCESS OF CERTAIN INFORMATION IN INFORMATION SYS-
TEMS TO THE DIRECTORY ESTABLISHED UNDER SECTION 
4101 OF TITLE 44, UNITED STATES CODE. 
Notwithstanding any other provision of this division, if in 
designing an information technology system pursuant to this divi-
sion, the head of an executive agency determines that a purpose 
of the system is to disseminate information to the pubHc, then 
the head of such executive agency shall reasonably ensure that 
an index of information disseminated by such system is included 
in the directory created pursuant to section 4101 of title 44, United 
States Code. Nothing in this section authorizes the dissemination 
of information to the public unless otherwise authorized. 
TITLE LV—PROCUREMENT PROTEST 
AUTHORITY OF THE COMPTROLLER 
GENERAL 
SEC. 5501. PERIOD FOR PROCESSING PROTESTS. 
Title 31, United States Code, is amended as follows: 
(1) Section 3553(b)(2)(A) is amended by striking out "35" 
and inserting in lieu thereof "30". 
(2) Section 3554 is amended— 
(A) in subsection (a)(1), by striking out "125" and 
inserting in lieu thereof "100"; and 
(B) in subsection (e)— 
(i) in paragraph (1), by striking out "Government 
Operations" and inserting in lieu thereof "Government 
Reform and Oversight"; and 
(ii) in paragraph (2), by striking out "125" and 
inserting in lieu thereof "100". 
SEC. 5502. AVAILABILITY OF FUNDS FOLLOWING GAO RESOLUTION 
OF CHALLENGE TO CONTRACTING ACTION. 
(a) IN GENERAL.—Section 1558 of title 31, United States Code, 
is amended— 
(1) in the first sentence of subsection (a)— 
(A) by inserting "or other action referred to in sub-
section (b)" after "protest" the first place it appears; 
(B) by striking out "90 working days" and inserting 
in lieu thereof "100 days"; and 
(C) by inserting "or other action" after "protest" the 
second place it appears; and 
(2) by striking out subsection (b) and inserting in lieu 
thereof the following: 
"(b) Subsection (a) applies with respect to— 
"(1) any protest filed under subchapter V of chapter 35 
of this title; or 
"(2) an action commenced under administrative procedures 
or for a judicial remedy if— 
"(A) the action involves a challenge to— 
"(i) a solicitation for a contract; 
"(ii) a proposed award of a contract; 
"(iii) an award of a contract; or 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 699 
"(iv) the eligibility of an offeror or potential offeror 
for a contract or of the contractor awarded the contract; 
and 
"(B) commencement of the action delays or prevents 
an executive agency from making an award of a contract 
or proceeding with a procurement.". 
(b) CONFORMING AMENDMENT.—The heading of such section 
is amended to read as follows: 
"§ 1558. Availability of funds following resolution of a formal 
protest or other challenge'*. 
(c) CLERICAL AMENDMENT.—^The item relating to such section 
in the table of sections at the beginning of chapter 15 of title 
31, United States Code, is amended to read as follows: 
"1558. Availability of funds following resolution of a formal protest or other 
challenge.". 
TITLE LVI—CONFORMING AND 
CLERICAL AMENDMENTS 
SEC. 5601. AMENDMENTS TO TITLE 10, UNITED STATES CODE. 
(a) PROTEST FILE.—Section 2305(e) is amended by striking out 
paragraph (3). 
(b) MuLTiYEAR CONTRACTS.—Section 2306b of such title is 
amended— 
(1) by striking out subsection (k); and 
(2) by redesignating subsection (1) as subsection (k). 
(c) LAW INAPPLICABLE TO PROCUREMENT OF INFORMATION TECH-
NOLOGY.—Section 2315 of title 10, United States Code, is amended 
by striking out "Section 111" and all that follows through "use 
of equipment or services if," and inserting in lieu thereof the follow-
ing: "For the purposes of the Information Technology Management 
Reform Act of 1996, the term 'national security systems' means 
those telecommunications and information systems operated by the 
Department of Defense, the functions, operation or use of which". 
SEC. 5602. A M E N D M E N T S TO TITLE 28, UNITED STATES CODE. 
(a) 
REFERENCES TO BROOKS AUTOMATIC DATA PROCESSING 
ACT.—Section 612 of title 28, United States Code, is amended— 
(1) in subsection (f), by striking out "section 111 of the 
Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 759)" and inserting in lieu thereof "the provisions of 
law, policies, and regulations applicable to executive agencies 
under the Information Technology Management Reform Act 
of 1996"; 
(2) in subsection (g), by striking out "sections 111 and 
201 of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 481 and 759)" and inserting in lieu thereof 
"section 201 of the Federal Property and Administrative Serv-
ices Act of 1949 (40 U.S.C. 481)"; 
(3) by striking out subsection (1); and 
(4) by redesignating subsection (m) as subsection (1). 
(b) REFERENCES TO AUTOMATIC DATA PROCESSING.—Section 612 
of title 28, United States Code, is further amended— 
(1) in the heading, by striking out the second word and 
inserting in lieu thereof "Information Technology"; 
110 STAT. 700 
PUBLIC LAW 104-106—FEB. 10, 1996 
(2) in subsection (a), by striking out "Judiciary Automation 
Fund" and inserting in lieu thereof "Judiciary Information Tech-
nology Fund"; and 
(3) by striking out "automatic data processing" and insert-
ing in lieu thereof "information technology" each place it 
appears in subsections (a), (b), (c)(2), (e), (f), and (h)(1). 
SEC. 5603. AMENDMENT TO TITLE 31, UNITED STATES CODE. 
Section 3552 of title 31, United States Code, is amended by 
striking out the second sentence. 
SEC. 5604. AMENDMENTS TO TITLE 38, UNITED STATES CODE. 
Section 310 of title 38, United States Code, is amended to 
read as follows: 
"§310. Chief Information Officer 
"(a) The Chief Information Officer for the Department is des-
ignated pursuant to section 3506(a)(2) of title 44. 
"(b) The Chief Information Officer performs the duties provided 
for chief information officers of executive agencies under chapter 
35 of title 44 and the Information Technology Management Reform 
Act of 1996.". 
SEC. 5605. PROVISIONS OF TITLE 44, UNITED STATES CODE, RELATING 
TO PAPERWORK REDUCTION. 
(a) DEFINITION.—Section 3502 of title 44, United States Code, 
is amended by striking out paragraph (9) and inserting in lieu 
thereof the following: 
"(9) the term 'information technology' has the meaning 
given that term in section 5002 of the Information Technology 
Management Reform Act of 1996 but does not include national 
security systems as defined in section 5142 of that Act;". 
(b) DEVELOPMENT OF STANDARDS AND GUIDELINES BY NATIONAL 
INSTITUTE OF STANDARDS AND TECHNOLOGY.—Section 3504(h)(1)(B) 
of such title is amended by striking out "section 111(d) of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
759(d))" and inserting in lieu thereof "section 5131 of the Informa-
tion Technology Management Reform Act of 1996". 
(c) COMPLIANCE WITH DIRECTIVES.—Section 3504(h)(2) of such 
title is amended by striking out "sections 110 and 111 of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
757 and 759)" and inserting in lieu thereof "the Information Tech-
nology Management Reform Act of 1996 and directives issued under 
section 110 of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 757)". 
(d) COLLECTION OF INFORMATION.—Section 3507(j)(2) of such 
title is amended by striking out "90 days" in the second sentence 
aujd inserting in lieu thereof "180 days". 
SEC. 5606. AMENDMENT TO TITLE 49, UNITED STATES CODE. 
Section 40112(a) of title 49, United States Code, is amended 
by striking out "or a contract to purchase property to which section 
111 of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 759) applies". 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 701 
SEC. 5607. OTHER LAWS. 
(a) 
NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY 
ACT.—Section 20 of the National Institute of Standards and Tech-
nology Act (15 U.S.C. 278g-3) is amended— 
(1) in subsection (a)— 
(A) by striking out "section 3502(2) of title 44" each 
place it appears in paragraphs (2) and (3)(A) and inserting 
in lieu thereof "section 3502(9) of title 44"; and 
(B) in paragraph (4), by striking out "section 111(d) 
of the Federal Property and Administrative Services Act 
of 1949" and inserting in lieu thereof "section 5131 of 
the Information Technology Management Reform Act of 
1996"; 
(2) in subsection (b)— 
(A) by striking out paragraph (2); 
(B) in paragraph (3), by striking out "section 111(d) 
of the Federal Property and Administrative Services Act 
of 1949" and inserting in lieu thereof "section 5131 of 
the Information Technology Management Reform Act of 
1996"; and 
(C) by redesignating paragraphs (3), (4), (5), and (6) 
as paragraphs (2), (3), (4), and (5); and 
(3) in subsection (d)— 
(A) in paragraph (l)(B)(v), by striking out "as defined" 
and all that follows and inserting in lieu thereof a semi-
colon; and 
(B) in paragraph (2)— 
(i) by striking out "system'—" and all that follows 
through "means" in subparagraph (A) and inserting 
in lieu thereof "system' means"; and 
(ii) by striking out "; and" at the end of subpara-
graph (A) and all that follows through the end of 
subparagraph (B) and inserting in lieu thereof a semi-
colon. 
(b) COMPUTER SECURITY ACT OF 1987.— 
(1) PURPOSES.—Section 2(b)(2) of the Computer Security 
Act of 1987 (Public Law 100-235; 101 Stat. 1724) is amended 
40 USC 759 note. 
by striking out "by amending section 111(d) of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 
759(d))". 
(2) SECURITY PLAN.—Section 6(b) of such Act (101 Stat. 
1729; 40 U.S.C. 759 note) is amended— 
(A) by striking out "Within one year after the date 
of enactment of this Act, each such agency shall, consistent 
with the standards, guidelines, policies, and regulations 
prescribed pursuant to section 111(d) of the Federal Prop-
erty and Administrative Services Act of 1949," and insert-
ing in lieu thereof "Each such agency shall, consistent 
with the standards, guidelines, policies^ and regulations 
prescribed pursuant to section 5131 of the Information 
Technology Management Reform Act of 1996,"; and 
(B) by striking out "Copies" and all that follows through 
"Code.". 
(c) FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 
1949.—Section 303B(h) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253b(h)) is amended by striking 
out paragraph (3). 
110 STAT. 702 
PUBLIC LAW 104-106—FEB. 10, 1996 
(d) OFFICE OF FEDERAL PROCUREMENT POLICY ACT.—Section 
6(h)(1) of the Office of Federal Procurement PoUcy Act (41 U.S.C. 
405(hX D) is amended by striking out "of automatic data processing 
and telecommunications equipment and services or". 
(e) NATIONAL ENERGY CONSERVATION POLICY ACT.—Section 
801(b)(3) of the National Energy Conservation Policy Act (42 U.S.C. 
8287(b)(3)) is amended by striking out the second sentence. 
(f) CENTRAL INTELLIGENCE AGENCY ACT OF 1949.—Section 3 
of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403c) 
is amended by striking out subsection (e). 
SEC. 5608. CLERICAL AMENDMENTS. 
(a) FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 
1949.—^The table of contents in section 1(b) of the Federal Property 
and Administrative Services Act of 1949 is amended by striking 
out the item relating to section 111. 
(b) TITLE 38, UNITED STATES CODE.—^The table of sections 
at the beginning of chapter 3 of title 38, United States Code, 
is amended by striking out the item relating to section 310 and 
inserting in lieu thereof the following: 
"310. Chief Information Officer.". 
4
0 use 1
4
0
1 
TITLE LVII—EFFECTIVE DATE, SAVINGS 
"'" 
PROVISIONS, AND RULES OF CON-
STRUCTION 
SEC. 5701. EFFECTIVE DATE. 
This division and the amendments made by this division shall 
take effect 180 days after the date of the enactment of this Act. 
SEC. 5702. S A V I N G S PROVISIONS. 
(a) REGULATIONS, INSTRUMENTS, RIGHTS, AND PRIVILEGES.— 
All rules, regulations, contracts, orders, determinations, permits, 
certificates, licenses, grants, and privileges— 
(1) which have been issued, made, granted, or allowed 
to become effective by the Administrator of General Services 
or the General Services Board of Contract Appeals, or by a 
court of competent jurisdiction, in connection with an acquisi-
tion activity carried out under section 111 of the Federal Prop-
erty and Administrative Services Act of 1949 (40 U.S.C. 759), 
and 
(2) which are in effect on the effective date of this division, 
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with 
law by the Director or any other authorized official, by a court 
of competent jurisdiction, or by operation of law. 
(b) PROCEEDINGS.— 
(1) 
PROCEEDINGS 
GENERALLY.—This 
division 
and 
the 
amendments made by this division shall not affect any proceed-
ing, including any proceeding involving a claim, application, 
or protest in connection with an acquisition activity carried 
out under section 111 of the Federal Property and Administra-
tive Services Act of 1949 (40 U.S.C. 759) that is pending before 
the Administrator of General Services or the General Services 
Board of Contract Appeals on the effective date of this division. 
PUBLIC LAW 104-106—FEB. 10, 1996 
110 STAT. 703 
(2) ORDERS.—Orders may be issued in any such proceeding, 
appeals may be taken therefrom, and pa)anents may be made 
pursuant to such orders, as if this division had not been 
enacted. An order issued in any such proceeding shall continue 
in effect until modified, terminated, superseded, or revoked 
in accordance with law by the Director or any other authorized 
official, by a court of competent jurisdiction, or by operation 
of law. 
(3) DISCONTINUANCE OR MODIFICATION OF PROCEEDINGS NOT 
PROHIBITED.—Nothing in this subsection prohibits the dis-
continuance or modification of any such proceeding under the 
same terms and conditions and to the same extent that such 
proceeding could have been discontinued or modified if this 
Act had not been enacted. 
(4) OTHER AUTHORITY AND PROHIBITION.—Section 1558(a) 
of title 31, United States Code, and the second sentence of 
section 3552 of such title shall continue to apply with respect 
to a protest process in accordance with this subsection. 
(5) REGULATIONS FOR TRANSFER OF PROCEEDINGS.—The 
Director may prescribe regulations providing for the orderly 
transfer of proceedings continued under paragraph (1). 
(c) STANDARDS AND GUIDELINES FOR FEDERAL COMPUTER SYS-
TEMS.—Stsmdards and guidelines that are in effect for Federal 
computer systems under section 111(d) of the Federal Property 
and Administrative Services Act of 1949 (40 U.S.C. 759(d)) on 
the day before the effective date of this division shall remain in 
effect until modified, terminated, superseded, revoked, or dis-
approved under the authority of section 5131 of this Act. 
SEC. 5703. RULES OF CONSTRUCTION. 
(a) RELATIONSHIP TO TITLE 44, UNITED STATES CODE.—Nothing 
in this division shall be construed to amend, modify, or supersede 
any provision of title 44, United States Code, other than chapter 
35 of such title. 
(b) RELATIONSHIP TO COMPUTER SECURITY ACT OF 1987.—Noth-
ing in this division shall affect the limitations on authority that 
is provided for in the administration of the Computer Security 
Act of 1987 (Public Law 100-235) and the amendments made by 
such Act. 
Approved February 10, 1996. 
LEGISLATIVE HISTORY—S. 1124 (H.R. 1530) (S. 1026): 
HOUSE REPORTS: Nos. 104-131 (Comm. on National Security) and 104-406 
(Comm. of Conference), both accompanying H.R. 1530, and 
i04—450 (Comm. of Conference). 
SENATE REPORTS: No. 104-112 accompanying S. 1026 (Comm. on Armed Serv-
ices). 
CONGRESSIONAL RECORD: 
Vol. 141 (1995): Sept. 6, a)nsidered and passed Senate. 
Vol. 142 (1996): Jan. 5, considered and passed House, amended, in lieu of 
H.R. 1530. 
Jan. 24, House agreed to conference report. 
Jan. 26, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996): 
Feb. 10, Presidential statement.