Department of Defense Authorization Act, 1986
PL 99-145 (S.1160), enacted 11/08/1985

PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 583 
Public Law 99-145 
99th Congress 
An Act 
To authorize appropriations for military functions of the Department of Defense and 
to prescribe military personnel levels for the Department of Defense for fiscal year 
j ^ ^ ^ g ^985 
1986, to revise and improve military compensation programs, to improve defense 
" .l^.f.-, '— 
procurement procedures, to authorize appropriations for fiscal year 1986 for 
\P- 1160] 
national security programs of the Department of Energy, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
Department of 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS 
Authorization 
(a) SHORT TITLE.—This Act may be cited as the "Department of 
^^^' ^^^^• 
Defense Authorization Act, 1986". 
(b) TABLE OF CONTENTS.—The table of contents of this Act is as 
follows: 
Sec. 1. Short title; table of contents. 
TITLE I—PROCUREMENT 
PART A—FUNDING AUTHORIZATIONS 
Sec. 101. Army. 
Sec. 102. Navy and Marine Corps. 
Sec. 103. Air Force. 
Sec. 104. Reserve components. 
Sec. 105. Defense Agencies. 
Sec. 106. NATO cooperative programs. 
Sec. 107. Reductions in authorizations due to savings from lower inflation and 
prior-year cost savings. 
Sec. 108. Provisions relating to transfers of prior-year funds. 
Sec. 109. Report on reductions and transfers. 
Sec. 110. Improvement in conventional readiness capability. 
PART B—ARMY PROGRAM LIMITATIONS 
Sec. 121. Sergeant York Division Air Defense (DIVAD) gun. 
Sec. 122. Bradley Fighting Vehicle. 
Sec. 123. Conditions on procurement of certain combat vehicles. 
Sec. 124. Sale of LI 19 howitzers overseas. 
Sec. 125. Restrictions on purchase of 5-ton trucks. 
Sec. 126. Other Army programs. 
PART C—NAVY PROGRAM LIMITATIONS 
Sec. 13L A6 aircraft rewing program. 
Sec. 132. Limitations on Navy aircraft procurement. 
PART D—AIR FORCE PROGRAM LIMITATIONS 
Sec. 141. MX missile program. 
Sec. 142. Competition for Air Force fighter aircraft procurement. 
Sec. 143. Advanced technology bomber. 
Sec. 144. Special operations forces HH-53 helicopters. 
PART E—OTHER LIMITATIONS 
Sec. 151. C-12 aircraft. 
Sec. 152. Adequate airlift for special operations forces. 
TITLE II—RESEARCH, DEVELOPMENT, TEST, AND EVALUATION 
PART A—AUTHORIZATIONS OF APPROPRIATIONS AND PROGRAM LIMITATIONS 
Sec. 201. Authorization of appropriations. 
99 STAT. 584 
PUBLIC LAW 99-145—NOV. 8, 1985 
Sec. 202. Reductions in authorizations due to savings from lower inflation and 
prior-year cost savings. 
Sec. 203. Authorization of transfers of prior-year funds. 
Sec. 204. Limitations on funds for the Army. 
Sec. 205. Limitations on funds for the Navy (including the Marine Corps). 
Sec. 206. Limitations on funds for the Air Force. 
Sec. 207. Limitations on funds for the Defense Agencies. 
Sec. 208. Testing of antisatellite weapons and space survivability program. 
Sec. 209. Small intercontinental ballistic missile program. 
Sec. 210. Advanced Medium-Range Air-to-Air Missile (AMRAAM) system. 
Sec. 21L High-speed Anti-Radiation Missile (HARM) program. 
PART B—STRATEGIC DEFENSE INITIATIVE 
Sec. 221. Funding for fiscal year 1986. 
Sec. 222. Requirement for specific authorization for deployment of Strategic De-
fense Initiative system. 
Sec. 223. Reports on Strategic Defense Initiative. 
Sec. 224. Congressional policy regarding consultation with other members of NATO 
on the Strategic Defense Initiative. 
Sec. 225. Congressional expression on the Strategic Defense Initiative and the ABM 
Treaty. 
Sec. 226. Report on strategic and theater ballistic missile defenses. 
TITLE III—OPERATION AND MAINTENANCE 
Sec. 301. Authorization of appropriations. 
Sec. 302. Authorization of appropriations for working-capital funds. 
Sec. 303. Limitation on the use of O&M funds to purchase investment items. 
Sec. 304. Assistance for the Tenth International Pan American Games. 
Sec. 305. Authorization of appropriations for transportation of humanitarian relief 
supplies to Afghan refugees. 
Sec. 306. Extension and expansion of authority of the Secretary of Defense to trans-
port humanitarian relief supplies to certain countries. 
Sec. 307. Limitation concerning Air National Guard and Air Force Reserve flying 
units. 
Sec. 308. Commissary and exchange privileges for survivors of certain reservists. 
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS 
PART A—ACTIVE FORCES 
Sec. 401. Authorization of end strengths. 
Sec. 402. Extension of quality control on enlistments into the Army. 
PART B—RESERVE FORCES 
Sec. 411. Authorization of average strengths for Selected Reserve. 
Sec. 412. Authorization of end strengths for Reserves on active duty in support of 
the reserve components. 
Sec. 413. Increase in number of certain personnel authorized to be on active duty in 
support of the reserve components. 
PART C—MILITARY TRAINING 
Sec. 421. Authorization of training student loads. 
TITLE V-DEFENSE PERSONNEL POLICY 
PART A—CIVIUAN PERSONNEL 
Sec. 501. Waiver of civilian personnel ceilings for fiscal year 1986. 
Sec. 502. Prohibition on managing civilian personnel by end-strengths during fiscal 
year 1986. 
Sec. 503. Exercise of certain authorities relating to civilian employees of the De-
partment of Defense. 
Sec. 504. Modification and study of Department of Defense civilian personnel classi-
fication and pay systems. 
PART B—ACTIVE MIUTARY PERSONNEL 
Sec. 511. Adjustment in Marine Corps officer grade table. 
Sec. 512. Service gigreements of cadets and midshipmen. 
Sec. 513. Transfers to and from temporary disability retired list. 
Sec. 514. Change in title of grade of commodore to rear admiral (lower half). 
Sec. 515. Temporary increase in the number of general and flag officers authorized 
to T
b
e on active duty in three- and four-star grades. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 585 
Sec. 516. Grade of retired regular members recalled to active duty. 
PART C—RESERVE MIUTARY PERSONNEL 
Sec. 521. Extension of certain reserve officer management programs. 
Sec. 522. Retention until age 60 of reserve civilian technicians. 
Sec. 523. Authority to retain in active status until age 62 up to 10 Army reserve 
major generals. 
Sec. 524. Requirement of muster test of Army Individual Ready Reserve. 
PART D—MISCELLANEOUS 
Sec. 531. Appointments of warrant officers. 
Sec. 532. Prisoner-of-war medal. 
Sec. 533. Clarification of precedence of the award of the purple heart. 
Sec. 534. Espionage under the UCMJ. 
TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS 
PART A—BASIC PAY AND ALLOWANCES 
Sec. 601. Military pay raise for fiscal year 1986. 
Sec. 602. Adjustments in variable housing allowance program. 
Sec. 603. Payment of variable housing allowance in Alaska and Hawaii. 
Sec. 604. Authority to pay BAQ and VHA in advance. 
Sec. 605. Eligibility for basic allowance for quarters. 
Sec. 606. Reimbursement for accommodations in place of quarters. 
Sec. 607. Increase in family separation allowance. 
PART B—TRAVEL AND TRANSPORTATION 
Sec. 611. Increase in dislocation allowance. 
Sec. 612. Revision of travel and transportation allowances. 
Sec. 613. Temporary lodging expenses. 
Sec. 614. Allowances for transportation of baggage and household effects. 
Sec. 615. Travel allowance for travel performed in connection with certain leave. 
Sec. 616. Travel during ship overhaul. 
Sec. 617. Definition of residence of a student dependent. 
Sec. 618. Extension of test program for fiat rate per diem system. 
Sec. 619. Travel and transportation allowances for travel within the administrative 
limits of a member's duty station. 
Sec. 620. Transportation allowances for survivors of deceased member to attend 
burial ceremonies of deceased member. 
PART C—BONUSES AND SPECIAL AND INCENTIVE PAYS 
Subpart 1—Active Forces 
Sec. 631. Lump-sum payments of selective reenlistment bonuses. 
Sec. 632. Special pay for nuclear officers. 
Sec. 633. Incentive pay for submarine duty. 
Sec. 634. Career sea pay. 
Sec. 635. Incentive pay for hazardous duty. 
Sec. 636. Extension of aviation officer continuation pay. 
Sec. 637. Change in definition of engineering and scientific duty. 
Sec. 638. Incentive pay for duty subject to hostile fire. 
Sec. 639. Revision of special pay for dental officers. 
Sec. 640. Special pay for medical officers. 
Sec. 641. Special pay for qualified enlisted members extending duty at certain loca-
tions overseas. 
Subpart 2—Reserve Forces 
Sec. 642. Selected Reserve enlistment bonus. 
Sec. 643. Selected Reserve reenlistment bonus. 
Sec. 644. Selected Reserve enlistment bonus for prior-service personnel. 
Sec. 645. Selected Reserve affiliation bonus. 
Sec. 646. Individual Ready Reserve bonuses. 
Sec. 647. Selected Reserve hazardous duty incentive pay. 
PART D—HEALTH-CARE MATTERS 
Sec. 651. CHAMPUS dental care for active-duty dependents. 
Sec. 652. Enhanced health-care benefits for survivors of certain reservists. 
Sec. 653. Licensure requirement for defense health-care professionals. 
Sec. 654. Study of medical casualty investigations. 
99 STAT. 586 
PUBLIC LAW 99-145—NOV. 8, 1985 
PART E—MIUTARY RETIREMENT 
Sec. 666. Limitation on amounts available for obligation for basic pay and for re-
tired pay accrual charge. 
Sec. 667. Legislative proposal to amend military retirement system for new 
entrants. 
PART F—EDUCATIONAL ASSISTANCE PROGRAM 
Sec. 671. Department of Defense educational loan repayment programs. 
Sec. 672. Specialized training assistance in the health profession for members of 
reserve components. 
Sec. 673. Right of members of naval service to transfer certain educational entitle-
ment to spouse or dependent children. 
Sec. 674. Changes in eligibility requirements for the all-volunteer force educational 
assistance program. 
PART G—MISCELLANEOUS 
Sec. 681. Legal representation of civilians overseas. 
Sec. 682. Accrued leave. 
Sec. 683. Pay allotments for Navy and Marine Corps. 
Sec. 684. Extension to PHS and NOAA of authority to collect debts from pay of 
members. 
Sec. 685. Surcharge for sales at animal disease prevention and control centers. 
TITLE VII—SURVIVOR BENEFIT PLAN IMPROVEMENTS 
Sec. 701. Short title. 
PART A—GENERAL PROGRAM CHANGES 
Sec. 711. Establishment of two-tier benefit system and elimination of social security 
offset. 
Sec. 712. SBP coverage for members who die after 20 years of service. 
Sec. 713. Annuity for survivors of certain retirement-eligible reservists. 
Sec. 714. Indexing of threshold amount for calculation of reduction of retired pay. 
Sec. 715. SBP coverage upon remarriage. 
Sec. 716. Option to cover both a former spouse and dependent children of a 
member. 
Sec. 717. Authority to repay refunded SBP deductions in installments. 
Sec. 718. Effective date of DIC offset. 
Sec. 719. Technical amendments to SBP statute. 
PART B—PROVISIONS RELATING TO RIGHTS FOR SPOUSES AND FORMER SPOUSES 
Sec. 721. Spousal concurrence for elections. 
Sec. 722. Clarification of status of spousal agreements. 
Sec. 723. Former spouse coverage to be provided in spouse category rather than in-
surable interest category. 
Sec. 724. Notice of elections available. 
PART C—EFFECTIVE DATE AND REPORT 
Sec. 731. Effective date. 
Sec. 732. Report on establishing needs-based survivor benefit annuity program for 
surviving spouses of certain retired reservists. 
TITLE VIII—MILITARY FAMILY POLICY AND PROGRAMS 
Sec. 801. Short title. 
Sec. 802. Office of Family Policy. 
Sec. 803. Transfer of Military Family Resource Center. 
Sec. 804. Surveys of military families. 
Sec. 805. Family members serving on advisory committees. 
Sec. 806. Employment opportunities for military spouses. 
Sec. 807. Youth sponsorship program. 
Sec. 808. Dependent student travel within the United States. 
Sec. 809. Relocation and housing. 
Sec. 810. Food programs. 
Sec. 811. Reporting of child abuse. 
Sec. 812. Miscellaneous reporting requirements. 
Sec. 813. Effective date. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 587 
TITLE IX—PROCUREMENT POUCY REFORM AND OTHER PROCUREMENT 
MATTERS 
Sec 901. Short title. 
PABT A—^PROGRAM MANAGEMENT MATTERS 
Sec. 911. Regulations relating to allowable costs. 
Sec. 912. Multiple sources for major defense acquisition programs. 
Sec. 913. Minimum percentage of competitive procurements. 
Sec. 914. R^ulations to control prices that may be paid for spare parts. 
Sec. 915. Should-cost analyses. 
Sec. 916. Limitations on progress payment& 
Sec. 917. Cost and price management in defense procurement. 
Sec. 918. Contracted advisory and assistance services. 
Sec. 919. Revision and extension of procurement technical assistance cooperative 
agreement program. 
PART B—PROCUREMENT PERSONNEL MATTERS 
Sec. 921. PostrGovemment-servioe emplojrment bars on senior defense officials. 
Sec. 922. Improved reporting and disclosure for former employees of the Depart-
ment of Defense; prevention of conflicts of interest 
Sec. 923. Requirements relating to private emplOTment contacts between certain 
Department of Defense procurement officials and defense contractors. 
Sec. 924. Management of Department of Defense procurement personnel. 
Sec. 925. Assignment of principal contracting officers. 
PART C—FALSE CLAIMS, DEBARMENT, BimoEN OF PROOF, AND RELATED MATTERS 
Sec. 931. Increased penalties for false claims in defense procurement. 
Sec. 932. Prohibition on felons convicted of defense-contract-related felonies and 
penalty on employment of such persons by defense contractors. 
Sec. 933. Burden of proof in Government contract dispute resolution. 
Sec. 934. Reimbursement, interest chai^ges, and penalties for overpayments. 
Sec 935. Subpoenas of defense contractor records. 
PART D—REPORTS 
Sec 951. Report on prohibition on including general and administrative overhead 
expenses in the computation of contractor profits. 
Sec. 952. Report on use of independent cost estimates for major defense acquisition 
programs. 
Sec 953. GAO study of feasibility of civilian defense acquisition agency. 
Sec 954. Report on suspension and debarment of defense contractors. 
Sec 955. Report on the use of competition under section 8(a) set-aside program. 
Sec 956. Report on efforts to increase defense contract awards to Indian-owned 
business. 
PART E—TECHNICAL AMENDMENTS TO FEDERAL PROCUREBCENT LAW 
Sec 961. Technical corrections to Federal procurement law. 
TITLE X—MATTERS RELATING TO ARMS CONTROL 
Sec. 1001. Policy on compliance with existing strategic offensive arms agreements. 
Sec. 1002. Annual report on Soviet compliance with arms control commitments. 
Sec 1003. Study of arms control verification capabilities. 
Sec 1004. Sense of Congress relating to United States-Soviet n^otiations on reduc-
tion in nuclear arms. 
Sec 1005. Pilot program for exchange of certain high-ranking military and civilian 
personnel with the Soviet Union. 
Sec 1006. Report on nuclear Monter findings and policy implications. 
TITLE XI—MATTERS RELATING TO NATO 
Sec. 1101. Limited authoriW to exceed permanent ceiling on United States forces 
assigned to NATO. 
Sec 1102. North Atlantic Treaty Organization cooperative projects. 
Sec 1103. NATO cooperative research and development 
TITLE Xn—DEPARTMENT OF DEFENSE MANAGEMENT 
PART A—MANAGEMENT OF FACOinES AND D O D ORGANIZATION 
Sec 1201. Annual Selected Acquisition Reports. 
Sec 1202. Base closures and realignments. 
51-194 O - 88 - 20 : QL. 3 
Parti 
99 STAT. 588 
PUBLIC LAW 99-145—NOV. 8, 1985 
Sec. 1203. Demonstration project to test the use of a certain computer system in 
military hospitals. 
Sec. 1204. Continued operation by the Secretary of Defense of the Defense Depend-
ents' education system. 
Sec. 1205. Authority to enroll certain children in overseas schools of the Defense 
Dependents' education system. 
Sec. 1206. Limitation on size of headquarters staffs. 
Sec. 1207. Report on organizational structure of the military health-care delivery 
system. 
Sec. 1208. Annual report on Guard and Reserve equipment. 
Sec. 1209. Moratorium on franchise agreements by military exchange services. 
Sec. 1210. Priority for Air Force Shuttle Operations and Planning Complex. 
Sec. 1211. Provision of uranium tetrafluoride to contractors for production of con-
ventional ammunition. 
Sec. 1212. Prohibition of certain restrictions on institutions eligible to provide edu-
cational services. 
PART B—PERSONNEL MANAGEMENT 
Sec. 1221. Counterintelligence polygraph program. 
Sec. 1222. Reduction in security clearance backlog. 
Sec. 1223. Authority for independent criminal investigations by Navy and Air Force 
investigative units. 
Sec. 1224. Establishment of minimum drinking age on military installations. 
Sec. 1225. Cash awards for disclosures leading to cost savings. 
PART C—CONTRACTING OUT FOR PERFORMANCE OF CERTAIN FUNCTIONS 
Sec. 1231. Specification of core-logistics functions subject to contracting-out limita-
tion. 
Sec. 1232. One-year extension of prohibition on contracting for the performance of 
firefighting and security functions. 
Sec. 1233. Services and activities to be performed by non-Government personnel. 
Sec. 1234. Increase in thresholds applicable to statutory contracting-out procedures. 
PART D—ECONOMY AND EFFICIENCY 
Sec. 1241. Flextime for Federal contractor employees. 
Sec. 1242. Prohibition on establishment of pay rates for prevailing rate employees 
of the Department of Defense using surveys of wages paid outside 
the local wage area. 
TITLE XIII—TECHNICAL AND CLERICAL AMENDMENTS 
Sec. 1301. Elimination of certain statutory gender-based distinctions. 
Sec. 1302. Technical amendments relating to benefits for certain DIA personnel. 
Sec. 1303. General clerical amendments. 
Sec. 1304. Clerical amendments to Federal procurement law. 
TITLE XIV—GENERAL PROVISIONS 
PART A—FINANCIAL MATTERS 
Sec. 1401. Transfer authority. 
Sec. 1402. Authorization of transfers for FY85 pay supplemental. 
Sec. 1403. Special Defense Acquisition Fund. 
Sec. 1404. Revisions to defense budget plan. 
Sec. 1405. Two-year budget cycle for the Department of Defense. 
Sec. 1406. Report on budgeting for inflation. 
Sec. 1407. Rejjort of unobligated balances. 
Sec. 1408. Authorization of appropriations for purchase of foreign currencies. 
PART B—CHEMICAL WEAPONS 
Sec. 1411. Conditions on spending funds for binary chemical munitions. 
Sec. 1412. Destruction of existing stockpile of lethal chemical agents and munitions. 
Sec. 1413. Report concerning the testing of chemical warfare agents. 
PART C—DRUG INTERDICTION, LAW ENFORCEMENT, AND OTHER SPECIFIC PROGRAMS 
Sec. 1421. Enhanced drug-interdiction assistance. 
Sec. 1422. Establishment, operation, and maintenance of drug law enforcement as-
sistance organizations of the Department of Defense. 
Sec. 1423. Military cooperation information programs for civilian law enforcement 
officials. 
Sec. 1424. Study on the use of the E-2 aircraft for drug interdiction purposes. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 589 
Sec. 1425. Strategic bomber programs. 
Sec. 1426. Restrictions on certain nuclear programs. 
PART D—MISCELLANEOUS REPORTING REQUIREMENTS 
Sec. 1431. Extension of time for submission of reports by Commission on Merchant 
Marine and Defense. 
Sec. 1432. Report on naval shipbuilding and repair base. 
Sec. 1433. Nuclear reactor components for SSN-21 class submarines. 
Sec. 1434. Aircraft fuel conservation report. 
Sec. 1435. Report concerning Poseidon-class submarine. 
Sec. 1436. Report and demonstration project concerning the sale of certam United 
States meat in military commissaries overseas. 
Sec. 1437. Report on retention of basic point defense missile system. 
Sec. 1438. Report on retirement benefits of Philippine scouts. 
Sec. 1439. Report on death penalty for espionage. 
Sec. 1440. Report on impact of foreign exports on the defense industrial base of the 
United States. 
Sec. 1441. Sense of Congress regarding the firing of tactical missiles for training 
purposes. 
Sec. 1442. Report on feasibility of drug testing of prospective recruits 
PART E—MISCELLANEOUS PROVISIONS 
Sec. 1451. Sense of Congress on introduction of Armed Forces into Nicaragua for 
combat. 
Sec. 1452. Sense of Congress concerning protection of United States military per-
sonnel against terrorism. 
Sec. 1453. Readiness of special operations forces. 
Sec. 1454. Authority 
to provide excess personal 
property 
for 
humanitarian 
purposes. 
Sec. 1455. Encouragement of construction in United States shipyards of combatant 
vessels for United States allies. 
Sec. 1456. Defense industrial base for textile and apparel products. 
Sec. 1457. Encouragement of technology transfer. 
Sec. 1458. Civil air patrol. 
Sec. 1459. National Science Center for Communications and Electronics. 
Sec. 14H0. Donations by commissary stores of certain unmarketable food. 
Sec 1461. Limitation on gratuities at naval shipbuilding ceremonies 
Sec. 1462. Authority to transfer certain aircraft. 
Sec. 1463. Authority to lease Air Force helicopters to the State of California. 
Sec. 1464 Sense of Congress concerning establishment of travel offices or acquisi-
tion of travel services. 
Sec. 1465. American stage equipment for United States patriotic events 
Sec. 1466. Sale of certain recordings of United States Air Force Band. 
TITLE XV-DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS 
Sec. 1501. Short title 
PART A—NATIONAL SECURITY PROGRAMS AUTHORIZATIONS 
Sec. 1511 Operating expenses. 
Sec. 1512. Plant and capital equipment. 
PART B—RECURRING GENERAL PROVISIONS 
Sec. 1521. Reprogramming. 
Sec. 1522. Limits on general plant projects. 
Sec. 1523. Limits on construction projects. 
Sec. 1524. Fund transfer authority. 
Sec. 1525. Authority for construction design. 
Sec. 1526. Authority for emergency construction design. 
Sec. 1527. Funds available for all national security programs of the Department of 
Energy. 
Sec. 1528. Adjustments for pay increases. 
Sec. 1529. Availability of funds. 
PART C—PROGRAM REVISIONS AND MISCELLANEOUS PROVISIONS 
Sec. 1531. General reduction. 
Sec. 1532. Community assistance payments. 
Sec. 1533. Improvements to Department of Energy building at Oak 
Ridge, 
Tennessee. 
Sec. 1534. Costs not allowed under covered contracts. 
99 STAT. 590 
PUBLIC LAW 99-145—NOV. 8, 1985 
Sec. 1535. Technical amendments. 
TITLE XVI—OTHER GENERAL PROVISIONS 
PART A—CIVIL DEFENSE 
Sec. 1601. Authorization of appropriations. 
PART B—NATIONAL DEFENSE STOCKPILE 
Sec. 1611. Funding for National Defense Stockpile. 
Sec. 1612. Prohibition of reductions in stockpile goals. 
Sec. 1613. Study of loss of production capacity of critical ferroalloy products. 
PART C—OTHER PROVISIONS 
Sec. 1621. Sense of the C!ongress expressing support for the Selective Service regis-
tration program. 
Sec. 1622. Prohibition on civil service employment of persons who fail to register 
under the Military Selective Service Act. 
Sec. 1623. Authority to provide Coast Guard commandant residence-to-work trans-
portation provided other service chiefs. 
Sec. 1624. Acceptance of certain volunteer services. 
Sec. 1625. Authority to exempt certain physicians at Soldiers' and Airmen's Home 
from reductions in retired pay. 
Sec. 1626. Management of military records maintained by the National Archives 
and Records Administration. 
Sec. 1627. Robert C. Byrd Honors Scholarship program. 
Sec. 1628. Postage stamp commemorating the 350th anniversary of the establish-
ment of the United States National Guard. 
TITLE I—PROCUREMENT 
PART A—FUNDING AUTHORIZATIONS 
SEC. 101. ARMY 
(a) 
AUTHORIZATION 
OF APPROPRIATIONS.—Funds are hereby 
authorized to be appropriated for fiscal year 1986 for procurement 
for the Army as follows: 
(1) For aircraft, $3,676,100,000. 
(2) For missiles, $3,272,700,000. 
(3) For weapons and tracked combat vehicles, $5,211,000,000. 
(4) For ammunition, $2,549,000,000. 
(5) For other procurement, $5,323,500,000, of which— 
(A) $1,002,700,000 is for tactical and support vehicles; 
(B) $3,131,300,000 is for communications and electronics 
equipment; 
(C) $1,307,400,000 is for other support equipment; and 
(D) $105,300,000 is for non-centrally managed items. 
(b) AUTHORIZATION OF TRANSFERS OF PRIOR-YEAR FUNDS.—There 
are hereby authorized to be transferred to, and merged with, 
amounts appropriated for procurement for the Army for fiscal year 
1986 pursuant to the authorization of appropriations in subsection 
(a) the following amounts: 
(1) AIRCRAFT.—$101,800,000 for procurement of aircraft, to be 
derived from amounts appropriated for fiscal year 1985 for 
procurement of aircraft for the Army. 
(2) MISSILES.—$25,000,000 for procurement of missiles, to be 
derived from amounts appropriated for fiscal year 1985 for 
procurement of missiles for the Army. 
(3) WEAPONS AND TRACKED COMBAT VEHICLES.—$117,900,000 
for procurement of weapons and tracked combat vehicles, of 
which— 
PUBLIC LAW 99-145-NOV. 8, 1985 
99 STAT. 591 
(A) $52,600,000 shall be derived from amounts appro-
priated for fiscal year 1984 for procurement of weapons and 
tracked combat vehicles for the Army; 
(B) $40,000,000 shall be derived from amounts appro-
priated for fiscal year 1985 for procurement of weapons and 
tracked combat vehicles for the Army; 
(C) $25,300,000 shall be derived from amounts availalDle 
for fiscal year 1985 for procurement of weapons and tracked 
combat vehicles for the Army resulting from the sale of 
M48A5 tanks under a letter of offer issued pursuant to 
section 21(aXl) of the Arms Export Control Act; 
Ante, p. 196. 
(4) AMMUNITION.—$140,000,000 for procurement of ammuni-
tion, of which— 
(A) $30,000,000 shall be derived from amounts appro-
priated for fiscal year 1984 for procurement of ammunition 
for the Army; and 
(B) $110,000,000 shall be derived from amounts appro-
priated for fiscal year 1985 for procurement of ammunition 
for the Army. 
(5) OTHER PROCUREMENT.—$230,600,000 for other procure-
ment, of which— 
(A) $79,000,000 shall be derived from amounts appro-
priated for fiscal year 1984 for other procurement for the 
Army; and 
(B) $151,600,000 shall be derived from amounts appro-
priated for fiscal year 1985 for other procurement for the 
Army. 
(c) AUTHORIZED MULTIYEAR CONTRACTS.—(1) Subject to paragraph 
(3), the Secretary of the Army may enter into multiyear contracts in 
accordance with section 2306(h) of title 10, United States Code, for 
procurement of the following: 
T-700 series engines. 
Chassis for the MlAl tank. 
AGT 1500 turbine engine for the Ml tank. 
Laser range finder and thermal integrated sight fire control 
components for the Ml tank. 
Electronic unit and control panel components for the ballistic 
computer for the Ml tank. 
Transmission system for the Bradley Fighting Vehicle. 
(2) The Secretary of the Army may not enter into a multiyear 
contract for procurement of the Armored Combat Earthmover. 
(3) A multiyear contract authorized by paragraph (1) may not be 
entered into unless the total anticipated cost over the period of the 
contract is no more than 90 percent of the total anticipated cost of 
carrying out the same program through annual contracts. 
(d) REMOVAL OF LIMITATION ON CONTRACTORS FOR 120-MIIXIMETER 
MORTAR.—The Secretary of the Army may select a contractor for 
the supply of 120-millimeter mortars for the Army as if section 
101(e) of the Department of Defense Authorization Act, 1985 (Public 
Law 98-525; 98 Stat. 2499), had not been enacted. 
(e) MULTIYEAR C!ONTRACT FOR 1985 MLRS PROGRAM PROCURE-
MENT.—Notwithstanding section 1502(a) of title 31, United States 
Code, or any other Act, funds appropriated for the multiple-launch 
rocket system (MLRS) program of the Army for fiscal year 1985 may 
be used to enter into contracts for purchases in economic-order 
quantities of materials and components for use with end items 
99 STAT. 592 
PUBLIC LAW 99-145—NOV. 8, 1985 
under the program proposed for procurement during fiscal year 
1989. 
SEC. 102. N
A
V
Y AND MARINE CORPS 
(a) AiRcaftAFT.—(1) Funds are hereby authorized to be appropriated 
for fiscal year 1986 for procurement of aircraft for the Navy in the 
amount of $11,599,900,000. 
(2) Funds appropriated for fiscal year 1985 for procurement of 
aircraft for the Navy are hereby authorized to be transferred to, and 
merged with, amounts appropriated for procurement of aircraft for 
the Navy for fiscal year 1986 pursuant to the authorization of 
appropriations in paragraph (1) in the amount of $109,000,000. 
(b) WEAPONS.—(IXA) Funds are hereby authorized to be appro-
priated for fiscal year 1986 in the total amount of $5,655,100,000 for 
procurement of weapons (including missiles and torpedoes) for the 
Navy. 
(B) There are hereby authorized to be transferred to, and merged 
with, amounts appropriated for procurement of weapons for the 
Navy for fiscal year 1986 the amount of $15,000,000, to be derived 
from amounts appropriated for fiscal year 1985 for procurement of 
weapons for the Navy. 
(2) Funds appropriated or otherwise made available for procure-
ment of weapons for the Navy for fiscal year 1986 pursuant to the 
authorizations in paragraph (1) are available as follows: 
(A) For missile programs, $4,430,400,000. 
(B) For torpedo pn^ams: 
For the MK-48 torpedo program, $417,400,000. 
For the MK-46 torpedo program, $129,100,000. 
For the MK-60 CAPTOR mine program, $59,600,000. 
For the MK-30 mobOe target program, $20,600,000. 
For the MK-38 minimobile target program, $3,500,000. 
For the 
antisubmarine 
rocket 
(ASROC) 
program, 
$15,600,000. 
For the modification of torpedoes and related equipment, 
$141,200,000. 
For the torpedo support equipment program, $47,400,000. 
For the antisubmarine warfare range support pr(^am, 
$23,200,000. 
(C) For other weapons: 
For the MK-15 close-in weapon system 
prc^am, 
$150,100,000. 
For the MK-75 76-millimeter gun mount pn^am, 
$20,000,000. 
For other weapons programs, $77,300,000. 
(D) For spares and repair parts, $166,600,000. 
(c) SHIPBUILDING AND CONVERSION.—<1XA) F\mds are hereby au-
thorized to be appropriated for fiscal year 1986 for shipbuilding and 
conversion for the Navy in the total amount of $10,001,200,000. 
(B) Funds appropriated for fiscal years before fiscal year 1986 are 
hereby authorized to be transferred to, and merged with, amounts 
appropriated pursuant to the authorization of apjpropriations in 
subparagraph (A) in the toted amount of $859,600,000. Such amount 
shall be derived in accordance with pcu-agraph (3). 
(2) Funds appropriated or otherwise made available for shipbuild-
ing and conversion for fiscal year 1986 pursuant to the authoriza-
tions in paragraph (1) are available as follows: 
For the Trident submarine program, $1,481,800,000. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 593 
For the SSN-688 nuclear attack submarine 
program, 
$2,698,400,000. 
For the aircraft carrier service life extension program (SLEP), 
$133,400,000. 
For the CG-47 Aegis cruiser program, $2,766,200,000. 
For 
the 
DDG-51 guided 
missile 
destroyer 
program, 
$164,300,000. 
For the LSD-41 landing ship dock program, $414,400,000. 
For 
the 
LHD-1 
amphibious 
assault 
ship 
program, 
$1,314,200,000. 
For the MCM-1 mine countermeasures ship program, 
$167,100,000. 
For 
the 
MSH-1 coastal 
mine 
hunter 
ship 
program, 
$184,500,000. 
For the TAO-187 fleet oiler program, $328,500,000. 
For 
the 
TAGOS 
ocean 
surveillance 
ship 
program, 
$115,100,000. 
For the acoustic research vessel program, $68,900,000. 
For the strategic sealift ready reserve program, $228,400,000. 
For the TAGS auxiliary crane ship program, $82,500,000. 
For the TAVB aviation logistics support ship program, 
$26,900,000. 
For 
the 
LCAG 
landing 
craft 
air 
cushion 
program, 
$307,000,000. 
For the battleship reactivation program, $53,500,000. 
For service craft and landing craft, $72,100,000. 
For the moored training ship program, $26,500,000. 
For outfitting and post delivery, $341,100,000. 
(3) Amounts transferred pursuant to paragraph (1)(B) to amounts 
appropriated for shipbuilding and conversion pursuant to the 
authorization of appropriations in paragraph (1)(A) shall be derived 
from amounts appropriated for shipbuilding and conversion for the 
Navy for fiscal years before fiscal year 1986 as follows: 
(A) $357,500,000 shall be derived from amounts appropriated 
for fiscal years before fiscal year 1983. 
(B) $153,000,000 shall be derived from amounts appropriated 
for fiscal year 1983. 
(C) $156,100,000 shall be derived from amounts appropriated 
for fiscal year 1984. 
(D) $193,000,000 shall be derived from amounts appropriated 
for fiscal year 1985. 
(4XA) The Secretary of the Navy is hereby authorized to transfer 
to and merge with amounts appropriated pursuant to the authoriza-
tions of appropriations in paragraph (1) amounts described in 
subparagraph (B). 
(B) Amounts that may be transferred under subparagraph (A) are 
amounts appropriated for fiscal year 1985 and prior years for ship-
building and conversion for the Navy and remaining available for 
obligation as a result of cost savings in carrying out shipbuilding 
programs for fiscal year 1985 and prior years. Any such transfer is 
in addition to the transfers described in paragraph (3). 
(5XA) The Secretary of the Navy may transfer to amounts avail-
able for the battleship reactivation program for fiscal year 1986 such 
amounts as may be available as a result of cost savings in carrying 
out shipbuilding programs for fiscal year 1986 and prior years. Any 
such transfer is in addition to the transfers described in paragraphs 
(3) and (4). 
99 STAT. 594 
PUBLIC LAW 99-145—NOV. 8, 1985 
Post, p. 742. 
(B) Section 1401 shall not apply to any transfer under this para-
graph of funds appropriated for fiscal year 1986. 
(d) 
OTHER 
PROCUREMENT, 
NAVY.—(1)(A) Funds are 
hereby 
authorized to be appropriated for fiscal year 1986 for other 
procurement for the Navy in the amount of $6,040,800,000. 
(B) There is hereby authorized to be transferred to, and merged 
with, amounts appropriated for other procurement for the Navy, the 
amount of $221,000,000, to be derived from amounts appropriated 
for fiscal years 1984 and 1985 for other procurement for the Navy, of 
which— 
(i) $70,000,000 shall be derived from amounts appropriated for 
fiscal year 1984; and 
(ii) $151,000,000 shall be derived from amounts appropriated 
for fiscal year 1985. 
(2) Funds appropriated or otherwise made available for other 
procurement for the Navy for fiscal year 1986 pursuant to the 
authorizations in paragraph (1) are available as follows: 
(A) $935,000,000 is available only for the ship support equip-
ment program; 
(B) $2,134,500,000 is available only for the communications 
and electronics equipment program; 
(C) $1,206,800,000 is available only for aviation support equip- j 
ment; 
(D) $1,396,500,000 is available only for the ordnance support 
equipment program; 
(E) a total of $685,000,000 is available only for programs for 
civil engineering support equipment, supply support equipment, 
and personnel/command support equipment; 
(F) $279,800,000 is available only for spares and repair parts; 
and 
(G) $125,300,000 is available only for non-centrally managed 
items. 
(e) PROCUREMENT, MARINE CORPS.—(1) Funds are hereby au-
thorized to be appropriated for fiscal year 1986 for procurement for 
the Marine Corps (including missiles, tracked combat vehicles, and 
other weapons) in the amount of $1,727,400,000. 
(2) There is hereby authorized to be transferred to, and merge 
with, amounts appropriated for procurement for the Marine Corps 
for fiscal year 1986 pursuant to the authorization of appropriations 
in paragraph (1) $28,000,000 to be derived from amounts appro-
priated for fiscal year 1985 for procurement for the Marine Corps. 
(f) AUTHORIZED MULTIYEAR CONTRACTS.—(1) The Secretary of 
the 
Navy may enter into multiyear contracts in accordance with section 
2306(h) of title 10, United States Code, for procurement of the 
following: 
LHD-1 class amphibious assault ships. 
MK-46 torpedoes and modification kits. 
(2) The Secretary of the Navy may not enter into a multiyear 
contract for the procurement of the P-3C Orion antisubmarine 
warfare patrol aircraft. 
(g) FUNDING FOR SHIP CONTRACT DESIGN.—Any request submitted 
to Congress for appropriations for a fiscal year after fiscal year 1986 
for ship contract design necessary to support the procurement of 
ships included (at the time the request is submitted) in the Navy's 
five-year shipbuilding and conversion plan shall be reflected in the 
Shipbuilding and Conversion account of the Navy. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 595 
SEC. 103. AIR FORCE 
(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are hereby au-
thorized to be appropriated for fiscal year 1986 for procurement for 
the Air Force as follows: 
(1) For aircraft, $24,435,300,000. 
(2) For missiles, $9,008,600,000. 
(3) For other procurement, $8,571,100,000, of which— 
(A) $1,432,400,000 is for munitions and associated support 
equipment; 
(B) $320,800,000 is for vehicular equipment; 
(C) $2,635,800,000 is for electronics and telecommuni-
cations equipment; 
(D) $4,655,400,000 is for other base maintenance and 
support equipment; and 
(E) $54,700,000 is available only for non-centrally man-
aged items. 
(b) AUTHORIZATION OF TRANSFERS OF PRIOR-YEAR FUNDS.—There 
are hereby authorized to be transferred to, and merged with, 
amounts appropriated for procurement for the Air Force for fiscal 
year 1986 pursuant to the authorization of appropriations in subsec-
tion (a) the following amounts: 
(1) AIRCRAFT.—$406,000,000 for procurement of aircraft, to be 
derived from amounts appropriated for fiscal year 1985 for 
procurement of aircraft for the Air Force. 
(2) MISSILES.—$42,800,000 for procurement of missiles, to be 
derived from amounts appropriated for fiscal years before fiscal 
year 1986 for procurement of missiles for the Air Force, of 
which— 
(A) $35,000,000 shall be derived from amounts appro-
priated for fiscal year 1985; and 
(B) 
$7,800,000 
shall 
be 
derived 
from 
amounts 
appropriated for fiscal years before fiscal year 1985. 
(3) OTHER PROCUREMENT.—$282,000,000 for other procure-
ment, to be derived from amounts appropriated for fiscal years 
before fiscal year 1986 for other procurement for the Air Force, 
of which— 
(A) $86,000,000 shall be derived from amounts appro-
priated for fiscal year 1984; and 
(B) $196,000,000 shall be derived from amounts appro-
priated for fiscal year 1985. 
SEC. 104. RESERVE COMPONENTS 
(a) 
AUTHORIZATION 
OF APPROPRIATIONS.—Funds are hereby 
authorized to be appropriated for fiscal year 1986 for procurement of 
aircraft, missiles, tracked combat vehicles, ammunition, other weap-
ons, and other procurement for the reserve components of the 
Armed Forces as follows: 
For the Army National Guard, $223,400,000. 
For the Air National Guard, $210,000,000. 
For the Naval Reserve, $45,000,000. 
For the Marine Corps Reserve, $60,000,000. 
For the Air Force Reserve, $120,000,000. 
(b) AUTHORIZATIONS IN ADDITION TO OTHER 
AMOUNTS.—The 
authorizations of appropriations contained in subsection (a) are in 
addition to any other amounts authorized to be appropriated by this 
or any other Act. 
99 STAT. 596 
PUBLIC LAW 99-145—NOV. 8, 1985 
SEC. 105. DEFENSE AGENCIES 
(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are hereby au-
thorized to be appropriated for fiscal year 1986 for the Defense 
Agencies in the amount of $1,342,300,000. 
(b) AUTHORIZATION OF TRANSFERS OF PRIOR-YEAR FUNDS.—There is 
hereby authorized to be transferred to, and merged with, amounts 
appropriated for procurement for the Defense Agencies for fiscal 
year 1986 pursuant to the authorization of appropriations in subsec-
tion (a) the amount of $36,000,000, to be derived from amounts 
appropriated for fiscal years before fiscal year 1986 for procurement 
for the Defense Agencies, of which— 
(1) $15,000,000 shall be derived from amounts appropriated 
for fiscal year 1984; and 
(2) $21,000,000 shall be derived from amounts appropriated 
for fiscal year 1985. 
SEC. 106. NATO COOPERATIVE PROGRAMS 
(a) AUTHORIZATION OF APPROPRIATIONS FOR COOPERATIVE DEFENSE 
PROGRAMS.—(1) There is hereby authorized to be appropriated to the 
Secretary of Defense for fiscal year 1986 the amount of $75,000,000 
for North Atlantic Treaty Organization cooperative defense pro-
grams as follows: 
For acquisition of point air defense of United States airbases 
in the Federal Republic of Germany, $30,000,000. 
For acquisition of point air defense of United States airbases 
and other critical United States military facilities in Italy, 
$15,000,000. 
For acquisition of point air defense and port defense for 
facilities in Belgium, $15,000,000. 
For acquisition of point air defense of United States airbases 
in Turkey, $15,000,000. 
(2) None of the amounts appropriated pursuant to the authoriza-
tions in paragraph (1) may be obligated— 
(A) for implementation of a cooperative program until the 
Secretary of Defense submits to the Committees on Armed 
Services of the Senate and House of Representatives a copy of 
each government-to-government agreement relating to that pro-
gram; or 
(B) for acquisitions in connection with a NATO cooperative 
defense program in which the financial obligations of the 
United States exceed the collective financial obligations of 
European countries in connection with such program. 
(b) EXTENSION OF AUTHORITY PROVIDED SECRETARY OF DEFENSE IN 
CONNECTION WITH THE NATO AW 
ACS PROGRAM.—Effective on 
October 1, 1985, section 103(a) of the Department of Defense 
Authorization Act, 1982 (Public Law 97-86; 95 Stat. 1100), is 
amended by striking out "fiscal year 1985" both places it appears 
and inserting in lieu thereof "fiscal year 1986". 
SEC. 107. REDUCTIONS IN AUTHORIZATIONS DUE TO SAVINGS FROM 
LOWER INFLATION AND PRIOR-YEAR COST SAVINGS 
(a) CERTAIN FY86 AUTHORIZATION REDUCTIONS TO BE FROM COST 
SAVINGS.—Authorization reductions described in subsection (b)— 
(1) may not be derived through cancellation of any authorized 
program, stretchout of procurement under any authorized pro-
gram, or any other change in an authorized program; but 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 597 
(2) may be derived only through cost reductions in programs 
of the Department of Defense under this title that are achieved 
without a reduction in the quantity or quality of goods or 
services acquired by the Department, including reductions due 
to the rate of inflation for fiscal year 1986 being lower than the 
rate assumed in the President's budget for fiscal year 1986. 
(b) IDENTIFICATION OF AMOUNTS.—Subsection (a) applies to the 
following amounts that represent reductions from amounts re-
quested in the President's Budget for fiscal year 1986 and that have 
been incorporated into the amounts authorized in sections 101 Ante, p. 590. 
through 105: 
Ante, pp. 592-596. 
(1) Aircraft, Army, $5,000,000. 
(2) Missiles, Army, $4,000,000. 
(3) Weapons and tracked combat vehicles, Army, $7,000,000. 
(4) Ammunition, Army, $3,000,000. 
(5) Other procurement. Army, $5,000,000. 
(6) Aircraft, Navy, $15,000,000. 
(7) Weapons, Navy, $7,000,000. 
(8) Shipbuilding and conversion. Navy, $14,000,000. 
(9) Other procurement. Navy, $6,000,000. 
(10) Procurement, Marine Corps, $2,000,000. 
(11) Aircraft, Air Force, $32,000,000. 
(12) Missiles, Air Force, $13,000,000. 
(13) Other Procurement, Air Force, $9,000,000. 
(14) Defense Agencies, $1,000,000. 
SEC. 108. PROVISIONS RELATING TO TRANSFERS OF PRIOR-YEAR FUNDS 
(a) 
AUTHORIZATION OF TRANSFERS SUBJECT TO PROVISIONS OF 
APPROPRIATIONS ACTS.—Transfers authorized by this title (other 
than a transfer described in section 102(cX5XB)) may be made only to Ante, p. 592. 
the extent provided in appropriation Acts. 
(b) SOURCE OF TRANSFERRED FUNDS.—(1) All amounts transferred 
under this title shall be derived from funds that remain available 
for obligation. 
(2) Except as provided in paragraphs (3) and (4), such funds— 
(A) may not be derived through cancellation of any program, 
stretchout of procurement under any program, or any other 
program change; but 
(B) may be derived only through cost reductions (including 
reductions due to rates of inflation being lower than rates 
assumed when such funds were budgeted) under programs for 
which such funds were authorized and appropriated that are 
achieved without a reduction in the quantity or quality of goods 
or services acquired by the Department of Defense. 
(3XA) Funds for the transfer authorized by section 101(bX3XB) may Ante, p. 590. 
be derived from the Sergeant York Air Defense Gun. 
(B) Funds for the transfer authorized by section 101(bX4XB) may 
be derived from 120-millimeter mortar ammunition. 
(C) Funds for the transfer authorized by section 101(bX5XB) may 
be derived from the Single Channel Objective Tactical Terminal and 
M9 Armored Combat Earthmover programs. 
(4) Paragraph (2) shall not apply to funds for the transfers 
authorized by section 101(bX3XC) and section 131(c). 
Post, p. 603. 
SEC. 
1
0
9
. 
REPORT 
ON 
REDUCTIONS 
AND 
TRANSFERS 
The Secretary of Defense may not implement a program change 
under a reduction described in section 107 or under a transfer under Ante, p. 596. 
99 STAT. 598 
PUBLIC LAW 99-145—NOV. 8, 1985 
Ante, p. 596. 
Contracts. 
Reports. 
Report. 
Report. 
Report. 
this title until the Secretary submits to the Committees on Armed 
Services of the Senate and House of Representatives a report 
describing the programs in which such reductions will be made in 
accordance with section 107 and the programs that are the source of 
the funds transferred under this title. 
SEC. 110. IMPROVEMENT IN CONVENTIONAL READINESS CAPABILITY 
(a) SENSE OF CONGRESS.—It is the sense of Congress that the 
United States should place greater emphasis on the improvement of 
the capabilities of United States conventional forces, particularly in 
cooperation with other member nations of the North Atlantic 
Treaty Organization, and that such an improvement would reduce 
the threat of nuclear war. 
(b) INCREASED AUTHORIZATIONS FOR CONVENTIONAL CAPABIUTY.— 
Accordingly, authorizations of appropriations for programs to im-
prove the conventional readiness capabilities of the Armed Forces in 
addition to the amounts requested in the President's budget for 
fiscal year 1986 have been included in the appropriate provisions of 
this Act, and similar emphasis on conventional defense capabilities 
is to be expected in future legislation authorizing appropriations for 
the Department of Defense. 
PART B—ARMY PROGRAM LIMITATIONS 
SEC. 121. SERGEANT YORK DIVISION AIR DEFENSE (DIVAD) GUN 
(a) LIMITATION ON FURTHER PROCUREMENT.—The Secretary of the 
Army may not obligate funds to execute option III of the production 
contract for procurement of fire units of the Sergeant York Division 
Air Defense (DIVAD) Gun system or to enter into a new contract for 
production and assembly of that system until— 
(1) the initial production testing and the follow-on evaluation 
I are completed and the results of the testing and evaluation 
demonstrate that the Sergeant York System meets or exceeds 
the pass/fail criteria of the tests established jointly by the 
Secretary of the Army and the Secretary of Defense; 
(2) the Director of Operational Test and Evaluation of the 
Department of Defense submits to the Secretary of Defense and 
the Committees on Armed Services of the Senate and House of 
Representatives a report giving the Director's evaluation of the 
results of such testing and evaluation; 
(3) the Secretary of Defense reports to those committees on 
the results of such testing and evaluation and certifies that such 
testing reliably demonstrates that the operational capabilities 
of the Sergeant York system meet or exceed the performance 
specifications of the contract; 
(4) the Secretary of the Army submits to those committees a 
report describing a contractor guarantee of the performance of 
the system described in subsection (bXD; and 
(5) 30 days have elapsed after the report under paragraph (4) 
is received by those committees. 
(b) PERFORMANCE GUARANTEE.—(1) The guarantee of the contrac-
tor under subsection (aX4) shall provide that each fire unit of the 
system shall operate in accordance with the performance specifica-
tions of the contract for the system for the maximum feasible 
duration and in any event for not less than one year. 
(2) The terms of a guarantee under this subsection shall be in 
addition to terms of any previous guarantee or warranty of the 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 599 
system by the contractor required under section 2403 of title 10, 
United States Code, or any predecessor provision. 
98 Stat. 2601. 
(3) A guarantee under this subsection shall apply to contracts for 
fiscal years after fiscal year 1985. 
SEC. 122. BRADLEY FIGHTING VEHICLE 
(a) REQUIREMENT FOR REPORTS ON TESTING.—The Secretary of 
Defense shall submit to the Committees on Armed Services of the 
Senate and House of Representatives two reports with respect to the 
Bradley Fighting Vehicle. The reports shall describe the results of 
the first and second phases, respectively, of the live-fire survivability 
testing program being carried out with respect to such vehicle. The 
reports shall be submitted in both classified and unclassified ver-
sions. 
(b) REQUIRED ELEMENTS OF TESTING PROGRAM.—In phase 1 of the 
testing program referred to in subsection (a), at least 10 live-fire 
tests using antiarmor weapons of the Soviet Union shall be con-
ducted against such vehicle in its current configuration. In phase 2 
of the testing program, similar tests shall be conducted against such 
vehicle in a configuration with enhanced survivability features. 
(c) CONTENT OF REPORTS.—The reports required by this section 
shall include the following: 
(1) A complete analysis of the results of the testing program 
referred to in subsection (a), including an accounting of all of 
the test shots which were fired at the test vehicle, the distances 
from which the shots were fired, and the effects of such shots. 
(2) A description and justification for the measures of merit 
and the pass/fail criterion used in the testing program. 
(3) A justification for exempting from the testing program any 
overmatch or undermatch weapon which would likely be 
encountered in combat conditions. 
(4) Potential problems that were revealed by the tests and a 
proposed design modification for remedjdng such problems. 
(5) The estimated unit cost of each proposed survivability 
modification and the overall program cost for the modifications. 
(6) A comparison of the estimated unit cost of the Bradley 
Fighting Vehicle in both the configuration used in phase 1 of 
the testing program and the configuration in phase 2 of the 
testing program. 
(d) DATE FOR SUBMISSION OF REPORTS.—The reports required by 
this section shall be submitted as follows: 
(1) The report regarding the results of phase 1 of the testing 
program shall be submitted by December 1,1985. 
(2) The report regarding the results of phase 2 of the testing 
program shall be submitted by June 1,1986. 
SEC. 123. CONDITIONS ON PROCUREMENT OF CERTAIN COMBAT VEHICLES 
(a) TESTING REQUIREMENTS.—(1) Chapter 139 of title 10, United 
States Code, is amended by adding at the end thereof the following 
new section: 
"§2362. Testing requirements: wheeled or tracked armored ve- lo use 2362. 
hides 
"(a) The Secretary of Defense shall provide that a contract for Contract. 
procurement by the Department of Defense under a major vehicle 
program may not be entered into unless the testing carried out 
99 STAT. 600 
PUBLIC LAW 99-145—NOV. 8, 1985 
during the development of the vehicle meets the requirements of 
subsection (b). 
"(b) The testing of a vehicle referred to in subsection (a) shall 
include testing of the vulnerability of such vehicle to the most 
capable weapon that is likely to be a combat threat to the vehicle 
and against which the vehicle is designed to survive. Such tests— 
"(1) shall be carried out in a manner modeled after the Joint 
Live-Fire Test Program for the Bradley Fighting Vehicle; and 
"(2) if the test vehicle is to replace an existing vehicle, shall at 
least include test shots fired under the same conditions at both 
the test vehicle and the vehicle it is to replace, with each vehicle 
being equipped with all of the elements with which the vehicle 
would be equipped in combat. 
Report. 
"(cXD The Secretary of Defense shall submit to the defense 
committees a report with respect to the testing of each vehicle for 
which testing is required under this section. 
"(2) A report under paragraph (1)— 
"(A) shall be submitted in both a classified and unclassified 
form; 
"(B) shall be submitted with the first request to Congress for 
appropriations for procurement— 
"(i) of the vehicle; or 
"(ii) of modifications to an existing vehicle. 
"(3) Each such report shall include— 
"(A) a complete description of the firing parameters used in 
the testing and an analysis of the effect on the vehicle of each 
test shot made; 
"(B) a description and justification of the merit and pass/fail 
criterion used in carrying out the test; 
"(C) a description of the potential shortcomings of the vehicle 
that were revealed by the testing and (if any were revealed) the 
plan of the Secretary to incorporate into the design of the 
vehicle changes that are considered cost effective and that are 
necessary to overcome such shortcomings; and 
"(D) if the test vehicle is to replace an existing vehicle, a 
comparison— 
"(i) of the estimated unit cost of each newly developed 
vehicle (or of the newly developed survivability modifica-
tions being made to an existing vehicle); with 
"(ii) the unit cost of the vehicle that is to be replaced by 
the test vehicle. 
"(d) The Secretary of Defense shall include in the Department of 
Defense plan referred to as the Test and Evaluation Master Pl£in 
that is established for any major vehicle program an estimated cost 
and schedule of the testing to be carried out with respect to the 
program. 
"(e) In this section: 
"(1) 'Major vehicle program' means a major defense acquisi-
tion program for the acquisition of— 
"(A) a newly developed combat wheeled or tracked ar-
mored vehicle; or 
"(B) a combat wheeled or tracked armored vehicle with 
significant newly developed survivabilitv modifications. 
"(2) 'Major defense acquisition program means a program 
subject to the Selected Acquisition Report requirements of sec-
10 use 139a. 
tion 139a of this title. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 601 
"(3) 'Defense committees' means the Committees on Armed 
Services and on Appropriations of the Senate and House of 
Representatives.". 
(2) Tlie table of sections at the b^inning of such chapter is 
amended by adding at the end thereof the following new item: 
"2362. Testiiig requirements: wheeled or tracked armored vehicles.". 
(b) ESnracnvK DATE.—^The amendments made by subsection (a) 10 USC 2362 note. 
shall take effect on January 1,1987. 
SEC. 124. SALE OF L119 HOWITZERS OVERSEAS 
(a) LniiTATTON ON SALE TO FOREIGN GOVERNMENTS.—^Howitzers United Kingdom. 
designated as L119 howitzers that are produced by a United States 
arsenal may be sold to a friendly foreign government only if not less 
than 30 percent of the doUar value of such howitzers is produced in 
the United Kingdom, as follows: 
(1) Five percent of the dollar value consists of basic issue 
items. 
(2) Ten percent of the dollar value consists of fire control 
items. 
(3) Fifteen percent of the dollar value consists of commercial 
items. 
(b) PERIOD OF APPUCABILITY.—Subsection (a) applies only during 
the period of coproduction of the L119 howitzer, as determined 
joinuy liy the United States and the United Kingdom. 
SEC. 1
2
S
u RESTRICTIONS O
N PURCHASE OF 5-TON TRUCKS 
(a) TESTING OF COMPETING ENGINES BEFORE CONTRACT AWARD.— 
(1) Except as provided in subsection (bX the Secretary of the Army 
may not enter into a new contract for the procurement of 5-ton 
trucks for the Army until the Secretary certifies to the Committees 
on Armed Services of the Senate and House of Representatives that 
each truck engine described in paragraph (2) has been tested as 
provided in paragraph (3). 
(2) The truck engines referred to in paragraph (1) are engines 
that— 
(A) meet the specifications of the Army for engines for 5-ton 
trucks; and 
(B) are commercial^ available from sources competing for the 
award of a contract tor the supply of engines to the Army for 
the 5-ton trucks that are to be procured under a multiyear 
contract that is to succeed the multiyear contract referred to in 
subsection O
i
>
)
. 
(3) The testing referred to in paragraph (1) shall be carried out in 
&-ton trucks configured in the M939 validated technical data pack-
age of the Army and shall include tests to determine— 
(A) whetiier the engine is durable after testing in a mission 
profile for at least 20,000 miles; and 
(B) whether the performance reliability of the engine for high 
ambient temperature cooling, cold starting, deep water fording, 
grade climbing, and noise is acceptable. 
(b) AUTHORITY FOR EXTENSION OF EXISTING MULTIYEAR CON-
TRACT.—(1) The Secretary of the Army may extend for a period not 
to exceed 18 months the multiyear contract for the procurement of 
5-ton trucks that is in effect on the date of the enactment of this Act. 
(2) Funds available to the Army for the procurement of &-ton 
trucks during fiscal year 1985 and funds appropriated for the 
99 STAT. 602 
PUBLIC LAW 99-145—NOV. 8, 1985 
procurement of 5-ton trucks for the Army for fiscal year 1986 may 
be used for the procurement of 5-ton trucks under an extension of 
the contract referred to in paragraph (1). 
(c) NEW MULTIYEAR CONTRACT.—(1) Subject to paragraph (2), the 
Secretary of the Army shall take such action as is appropriate, 
consistent with the limitation set out in subsection (a), to award a 
multiyear contract for the procurement of 5-ton trucks not later 
than May 1, 1986. Such a contract shall be for a period of five fiscal 
years. A contract under this paragraph may only be entered into in 
accordance with section 2306(h) of title 10, United States Code. 
(2) A contract under paragraph (1) may not be entered into unless 
the Emticipated cost over the period of the contract is no more than 
90 percent of the anticipated cost of carrying out the same program 
through annual contracts. 
(3) Not later than February 1, 1986, the Secretary shall determine 
whether it is impracticable to award a contract under paragraph (1) 
on or before May 1, 1986. If the Secretary determines that such 
action is impracticable, he shall notify the Committees on Armed 
Services of the Senate and the House of Representatives of the 
determination on or before February 1,1986. 
SEC. 126. OTHER ARMY PROGRAMS 
(a) COPPERHEAD PROJECTILE PROGRAM.—Of the amount authorized 
Ante, p. 590. 
in section 101 for procurement of ammunition, $235,000,000 is au-
thorized for the Copperhead projectile. Not more than $200,000,000 
may be obligated or expended for that projectile from funds appro-
priated or otherwise made available to the Army for fiscal year 
1986, after the date of the enactment of this Act, until the Secretary 
of Defense submits to Congress a written plan to establish a second 
production source for the Copperhead projectile. 
Qo) SAFETY MODIFICATIONS FOR PERSHING II MISSILE PROGRAM.—(1) 
In carrying out the Pershing II missile program for fiscal year 1986, 
the Secretary of the Army may purchase safety modifications 
(including 36 inert missile motors for the Pershing II missile) using 
funds made available for such program for such fiscal year. 
(2) The Secretary may not obligate any funds for the safety 
modifications authorized by paragraph (1) until the Secretary sub-
mits to the Committees on Armed Services of the Senate and House 
of Representatives a report providing a detailed plan for the pur-
chase of such safety modifications. 
(c) AH-64 APACHE HEUCOPTERS.—The Secretary of the Army may 
not obligate funds appropriated or otherwise made available for a 
fiscal year after fiscal year 1985 for procurement of AH-64 Apache 
attack helicopters until the Director of the Defense Contract Audit 
Agency reports to the Secretary that the contractor for such heli-
copters has demonstrated to the satisfaction of the Director— 
(1) that the contractor has implemented an effective and 
reliable system of internal accounting controls; and 
(2) that the contractor has accumulated documentation 
(including journals, vouchers, invoices, and expense data) to 
support the contractor's final submission for settlement of in-
direct expenses for calendar years 1979 through 1983 and that 
such documentation is available to the Director. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 603 
PART C—NAVY PROGRAM LIMITATIONS 
SEC. 131. A6 A I R C R A F T R E W I N G PROGRAM 
(a) AUTHORIZED PROGRAM.—The Secretary of the Navy is au-
thorized to carry out a program to replace the wings of the A6 
aircraft. The amount obhgated to carry out such program during 
fiscal year 1985 may not exceed $240,000,000. 
OJ) REQUIRED WARRANTY.—Funds may be obligated for the pro-
gram authorized by subsection (a) only under a firm fixed-price 
contract which includes a warranty guaranteeing a wing fatigue life 
of at least 8,800 hours. 
(c) AUTHORIZATION FOR TRANSFER OF FUNDS.—There are hereby 
authorized to be transferred to, and merged with, amounts appro-
priated for procurement for aircraft for the Navy for fiscal year 
1985, to the extent provided in appropriation Acts, $240,000,000 for 
the program authorized by subsection (a). Such amount shall be 
derived from amounts appropriated for procurement of aircraft for 
the Navy for fiscal years before fiscal year 1986 as follows: 
(1) $103,000,000 shall be derived from amounts appropriated 
for fiscal years before fiscal year 1985 remaining available for 
obligation. 
(2) $137,000,000 shall be derived from amounts appropriated 
for fiscal year 1985 remaining available for obligation. 
SEC. 132. LIMITATIONS ON NAVY AIRCRAFT PROCUREMENT 
Funds appropriated for fiscal year 1986 for aircraft for the Navy— 
(1) may not be obligated for procurement of A6E aircraft until 
the Secretary of the Navy certifies to the Committees on Armed 
Services of the Senate and House of Representatives that the 
wing for the A6E aircraft to be procured is warranted for at 
least a 4,000-hour test-equivalent fatigue life; and 
(2) may be obligated for procurement of F14 aircraft only for 
aircraft that are configured so as to incorporate the FllO 
engine. 
PART D—AIR FORCE PROGRAM LIMITATIONS 
SEC. 141. MX MISSILE PROGRAM 
(a) LIMITATIONS ON FY86 MX PROGRAM.—(1) Not more than 12 
MX missiles may be procured with funds appropriated or otherwise 
made available in an appropriation law for fiscal year 1986 for the 
procurement of missiles for the Air Force. 
(2) Of the funds appropriated or otherwise made available in an 
appropriation law for fiscal year 1986 for the procurement of mis-
siles for the Air Force— 
(A) $1,746,000,000 shall be available only for the procurement 
of 12 MX missiles and related weapons system and support 
costs; and 
(B) $105,000,000 shall be available only for the procurement of 
initial spares for the MX missile program. 
(b) LIMITATIONS ON DEPLOYMENT AND BASING OF MX MISSILES.—(1) 
The number of MX missiles deployed at any time in existing 
Minuteman silos may not exceed 50. 
(2) Funds appropriated pursuant to this or any other Act may not 
be used— 
99 STAT. 604 
PUBLIC LAW 99-145—NOV. 8, 1985 
(A) to modify, or prepare for modification, more than 50 
existing Minuteman silos for the deployment of MX missiles; 
(B) to acquire basing sets to modify more than 50 existing 
Minuteman silos for the deployment of MX missiles; or 
(C) to procure long-lead items for the deployment of more 
than 50 MX missiles. 
(c) ADDITIONAL LIMITATIONS ON THE DEPLOYMENT AND BASING OF 
MX MISSILES.—Unless a basing mode for the MX missile other than 
existing Minuteman silos is specifically authorized by legislation 
enacted after the date of the enactment of this Act, after procure-
ment of 50 MX missiles for deployment in existing Minuteman 
silos— 
(1) further procurement of MX missiles shall be limited to 
those missiles necessary to support the operational test program 
and for the MX missile reliability testing program; and 
(2) during fiscal year 1987, depending upon the most efficient 
production rate, from 12 to 21 MX missiles should be procured 
for such purposes. 
SEC. 142. COMPETITION FOR AIR FORCE FIGHTER AIRCRAFT PROCURE-
MENT 
(a) REQUIRED COMPETITION.—The Secretary of the Air Force shall 
establish during fiscal year 1986 a competition for the procurement 
of fighter aircraft to meet the requirements of the active and reserve 
forces of the Air Force. Such competition shall be among all suitable 
aircraft. 
(b) COMPLIANCE WITH APPUCABLE LAW.—Procurement of tactical 
fighter aircraft for the Air Force for fiscal year 1986 shall be carried 
out in accordance with all applicable provisions of law, including 
section 136a (relating to the Director of Operational Test and 
Evaluation), section 139c (relating to independent cost estimates), 
and chapter 137 (relating to competition in contracting), of title 10, 
98 Stat. 1185. 
United States Code. 
10 use 2301 et 
seq. 
SEC. 143. ADVANCED TECHNOLOGY BOMBER 
(a) REPORT ON TOTAL PROGRAM COST.—Not later than February 1, 
1986, the Secretary of Defense shall transmit to Congress a report 
setting forth the total program cost for the advanced technology 
bomber program. The Secretary shall include in the report the 
Secretary's evaluation of the reliability of the cost estimates for the 
program. 
(b) LIMITATION ON EXPENDITURE OF PROCUREMENT FUNDS.—No 
funds appropriated pursuant to the authorizations of appropriations 
in this title may be obligated or expended for the advanced tech-
nology bomber program until the report required by subsection (a) is 
transmitted to Congress. 
SEC. 144. SPECIAL OPERATIONS FORCES HH-53 HELICOPTERS 
(a) AIR FORCE AIRCRAFT FUNDS.—Of the amount authorized in 
Ante, p. 595. 
section 103(a) for procurement of aircraft for the Air Force, 
$50,000,000 is available only for modification of HH-53 helicopters 
to the PAVE LOW mission configuration. 
(b) CERTIFICATION REQUIREMENT.—None of the amount described 
in subsection (a) may be obligated or expended until the Secretary of 
the Air Force certifies that sufficient funds have been budgeted in 
the fiscal year 1987 five-year defense plan to meet, at the earliest 
practicable date, and sustain the highest readiness level prescribed 
3087. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 605 
for aU PAVE LOW HH-53 helicopters in the Joint Chiefs of Staff 
Unit Status Report System. 
PART E—OTHER LIMITATIONS 
SEC 151. C-12 AIRCRAFT 
None of the funds appropriated pursuant to authorizations in this 
title may be obligated or expended for procurement of C-12 aircraft 
unless such aircraft are procured through competitive procedures 
(as defined in section 2302(2) of title 10, United States Ckxle), which 
98 Stat. 1186, 
shall be restricted to turboprop aircraft. 
SEC 152. ADEQUATE AIRUFT FOR SPECIAL OPERATIONS FORCES 
None of the funds appropriated pursuant to authorizations in this 
title may be obligated or expended for the procurement of MO130 
aircraft or the modification of HH-53 or CH-47 helicopters until the 
Secretary of Defense— 
(1) submits, in consultation with the (!)hairman of the Joint 
Chiefs, to the Committees on Armed Services of the Senate and 
House of Representatives a plan for meeting the immediate 
airlift requirements of the Joint Special Operations Command 
and a second plan for meeting, by 1991, the airlift requirements 
of the Joint Special Operations Command and the special oper-
ations forces of unified commanders-in-chief; and 
(2) certifies that the plans required by paragraph (1) are 
funded in the Fiscal Year 1987 Five-Year Defense Plan. 
TITLE II—RESEARCH, DEVELOPMENT, TEST, 
AND EVALUATION 
PART A—AUTHORIZATIONS OF APPROPRIATIONS AND PROGRAM 
LnaTATiONS 
SEC 201. AUTHORIZATION OF APPROPRIATIONS 
(a) IN GENERAL.—Funds are hereby authorized to be appropriated 
for fiscal year 1986 for the use of the Armed Forces for research, 
development, test, and evaluation in amounts as follows: 
(1) For the Army, $4,848,663,000. 
(2) 
For the 
Navy 
(including 
the 
Marine 
0)rps), 
$10,106,401,000. 
(3) For the Air Force, $13,719,721,000. 
(4) For the Defense Agencies, $6,813,969,000 of which 
$93,500,000 is authorized for the activities of the Director of Test 
and Evaluation, Defense. 
(b) GENERAL AUTHORIZATION FOR (CIVILIAN PAY CONTINGENCIES.— 
There are authorized to be appropriated for fiscal year 1986, in 
addition to the amounts authorized to be appropriated in subsection 
(a), such sums as may be necessary for unbudgeted amounts for 
salary, pay, retirement, and other employee benefits authorized by 
law for civilian employees of the Department of Defense whose 
compensation is provided for by funds authorized to be appropriated 
in subsection (a). 
99 STAT. 606 
PUBLIC LAW 99-145—NOV. 8, 1985 
SEC. 202. REDUCTIONS IN AUTHORIZATIONS DUE TO SAVINGS FROM 
LOWER INFLATION AND PRIOR-YEAR COST SAVINGS 
(a) CERTAIN FY86 AUTHORIZATION REDUCTIONS TO BE FROM COST 
SAVINGS.—Authorization reductions described in subsection (b)— 
(1) may not be derived through cancellation of any authorized 
program or any other change in an authorized program; but 
(2) may be derived only through cost reductions (including 
reductions due to the rate of inflation being lower than the rate 
assumed in the President's budget for fiscal year 1986) in pro-
grams of the Department of Defense under this title that are 
achieved without a reduction in the quantity or quality of goods 
or services acquired by the Department. 
(b) IDENTIFICATION OF AMOUNTS.—Subsection (a) applies to the 
following amounts that represent reductions from amounts re-
quested in the President's Budget for fiscal year 1986 and that have 
Ante, p. 605. 
been incorporated into the amounts authorized in section 201: 
(1) For the Army, $4,000,000. 
(2) For the Navy (including the Marine Corps), $11,000,000. 
(3) For the Air Force, $14,000,000. 
SEC. 203. AUTHORIZATION OF TRANSFERS OF PRIOR-YEAR FUNDS 
(a) AUTHORIZED TRANSFERS.—There are hereby authorized to be 
transferred to, and merged with, amounts appropriated for research, 
development, test, and evaluation for the Armed Forces pursuant to 
Ante, p. 605. 
the authorizations of appropriations in section 201 the following 
amounts: 
(1) ARMY.—$85,000,000, to be derived from amounts appro-
priated for fiscal year 1985 for research, development, test, and 
evaluation for the Army. 
(2) NAVY.—$183,000,000, to be derived from amounts appro-
priated for fiscal year 1985 for research, development, test, and 
evaluation for the Navy (including the Marine Corps). 
(3) AIR FORCE.—$256,000,000, to be derived from amounts 
appropriated for fiscal year 1985 for research, development, 
test, and evaluation for the Air Force. 
(4) DEFENSE AGENCIES.—$47,000,000, to be derived from 
amounts appropriated for fiscal year 1985 for research, develop-
ment, test, and evaluation for the Defense Agencies. 
(b) AUTHORIZATION OF TRANSFERS SUBJECT TO PROVISIONS OF 
APPROPRIATIONS ACTS.—Transfers authorized by subsection (a) may 
be made only to the extent provided in appropriation Acts. 
(c) SOURCE OF TRANSFERRED FUNDS.—(1) All amounts transferred 
under this section shall be derived from funds that remain available 
for obligation. 
(2) Such funds— 
(A) may not be derived through cancellation of any program, 
stretchout of procurement under any program, or any other 
program change; but 
(B) may be derived only through cost reductions (including 
reductions due to rates of inflation being lower than rates 
assumed when such funds were budgeted) under programs for 
which such funds were authorized and appropriated that are 
achieved without a reduction in the quantity or quality of goods 
or services acquired by the Department of Defense. 
(d) REPORT ON REDUCTIONS AND TRANSFERS.—The Secretary of 
Defense may not implement a program change under a reduction 
Supra. 
described in section 202 or under a transfer under this section until 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 607 
the Secretary submits to the Committees on Armed Services of the 
Senate and House of Representatives a report describing the pro-
grams in which such reductions will be made in accordance with 
section 202 and the programs that are the source of the funds 
Ante, p. 606. 
transferred under this section. 
SEC. 204. LIMITATIONS ON FUNDS FOR THE ARMY 
(a) IN GENERAL.—Of the amount authorized in section 201 for the 
Ante, p. 605. 
Army— 
(1) $52,836,000 is available only for the Missile/Rocket Compo-
nents program, of which— 
(A) $10,000,000 is available only for the development of 
the Fiber Optics Guided Missile; and 
(B) $10,000,000 is available only for development of the 
Hypervelocity Missile; 
(2) $23,583,000 is available only for the Stinger Missile 
program; 
(3) $18,898,000 is available only for the Ml El Tank Develop-
ment program, of which $15,000,000 is available only for a fuel-
efficient modification for the AGT-1500 tank engine; 
(4) $20,000,000 is available only for the development, test 
integration, and evaluation of the Hellfire Missile for the 
Blackhawk helicopter; and 
(5) $42,000,000 is available only for the Software Initiative 
(STARS) program. 
(b) REPORT.—Not later than December 15, 1985, the Secretary of 
the Army shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report delineating a 
program plan for the fuel-efficient modification for the AGT-1500 
transverse-mounted tank engine and for the Advanced Integrated 
Propulsion system. Such plan shall include the total system cost and 
system milestones for such programs. 
SEC. 205. LIMITATIONS ON FUNDS FOR THE NAVY (INCLUDING THE 
MARINE CORPS) 
(a) IN GENERAL.—Of the amount authorized in section 201 for the 
Ante, p. 605. 
Navy (including the Marine Corps)— 
(1) $17,500,000 is available only for the Low-Cost Anti-Radi-
ation Seeker program; 
(2) $4,464,000 is available only for the Advanced Mine Devel-
opment program; 
(3) $5,900,000 is available only for the Naval Oceanography 
program; 
(4) $12,000,000 is available only for the Battlegroup Quick 
Reaction Surveillance System program; 
(5) $4,000,000 is available only for unique Wallops Island Test 
Range activity; 
(6) $10,000,000 is available only for the Skipper/Practice 
Bomb program; 
(7) $1,500,000 is available only for a classified sensor develop-
ment program; and 
(8) $2,500,000 is available only to establish a second source for 
the competitive procurement of the Navy Five-Inch and Army 
155-Millimeter Guided Projectile systems. 
(b) REPORT.—Not later than December 15, 1985, the Secretary of 
the Navy shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report delineating a 
99 STAT. 608 
PUBLIC LAW 99-145—NOV. 8, 1985 
program plan for the Low-Cost Anti-Radiation Seeker Program, 
Such plan shall include the total system cost and system milestones 
for such program. 
(c) SSN-21 COMBAT SYSTEM ADVANCED AND ENGINEERING PRO-
Ante, p. 605. 
GRAMS.—(1) Of the amount authorized in section 201 for the Navy, 
$200,000,000 is available only for the SSN-21 Combat System Ad-
vanced and Engineering program. None of such amount may be 
obligated or expended for the Submarine Advanced Combat System 
(SUBACS) program unless the Secretary of the Navy submits to the 
Committees on Armed Services of the Senate and House of Rep-
resentatives written certification that— 
Contract. 
(A) the Secretary has initiated action to negotiate and sign 
prior to February 1, 1986, a modification to the full-scale 
engineering development contract which would provide for— 
(i) a cost ceiling for such development with no liability of 
the United States for cost growth above such ceiling; and 
(ii) penalties for late delivery of equipment and failure to 
meet performance criteria; 
(B) before completion of full-scale engineering development 
for the SUBACS Basic system under such program, such con-
tractor will provide to the United States a complete technical 
data package— 
(i) at no additional cost to the Government; 
(ii) containing no manufacturing or proprietary data 
rights; and 
(iii) of such quality as to allow production of such system 
by a second source; 
(C) the Secretary has begun action to provide, to the maxi-
mum extent possible, competition for procurement of compo-
nents for production of the SUBACS Basic system; and 
(D) the Secretary has begun action to establish competition in 
development and production of the follow-on systems to the 
SUBACS Basic system. 
(2) During the period of any negotiations for a contract modifica-
tion referred to in paragraph (1)(A), the monthly rate of expenditure 
for the SUBACS program may not exceed the rate of expenditure for 
such program. 
(3) The Secretary shall also provide, within the amount of funds 
provided for the SSN-21 Combat System Advanced Engineering 
Program, that one or more firms that are potential competitors for 
the attack submarine combat system for fiscal year 1989 be estab-
lished as associate contractors for the SUBACS Basic program with 
full access to all SUBACS development information. 
(4) If the Secretary determines that it is not possible to make a 
certification under paragraph (1), the Secretary may obligate and 
expend funds necessary to develop an advanced combat system 
(other than SUBACS) for the SSN-21 submarine and other ap-
plicable platforms. 
Contract. 
(d) ROLLING AIRFRAME MissiLE PROGRAM.—Funds appropriated for 
fiscal year 1986 for research, development, test, and evaluation for 
the Navy may not be obligated for the Rolling Airframe Missile 
program or the NATO Sea Sparrow program unless the Secretary of 
the Navy certifies to the Committees on Armed Services of the 
Senate and House of Representatives that— 
(1) the Secretary has entered into a firm fixed-price produc-
tion contract for the Rolling Airframe Missile program; 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 609 
(2) such contract includes options of the United States for 
procurement under such program for fiscal years after fiscal 
year 1986 with maximum prices established for such options; 
and 
(3) the contractor for such contract has provided a complete 
data package to the Navy— 
(A) at no additional cost to the United States; and 
(B) containing no manufacturing or proprietary data 
rights of the contractor. 
(e) ACQUISITION OF ANTI-SUBMARINE WARFARE TRAINING SYS-
TEMS.—^The Secretary of the Navy shall initiate a competitive 
procurement of three service test models of the LAMPS Mark I anti-
submarine warfare shipboard training system for the Naval Reserve 
during fiscal year 1986. Of the funds appropriated pursuant to the 
authorizations of appropriations in section 201(aX2), $6,800,000 may 
not be obhgated before such test models are procured. 
SEC. 206. UMITATIONS ON FUNDS FOR THE AIR FORCE 
Of the amount authorized in section 201 for the Air Force— 
Ante, p. 605. 
(1) $60,000,000 is available only for research, development, 
test, and evaluation for the Integrated Electronic Warfare 
system (INEWS) and the Integrated Communication, Naviga-
tion, Identification Avionics (ICNIA) system; 
(2) $22,000,000 is available only for the research, development, 
test, and evaluation to modify the F-4 aircraft to satisfy the Air 
Force air defense mission; 
(3) $19,570,000 is available only for a classified reconnaissance 
system; 
(4) $211,276,000 is available only for the Very High Speed 
Inte^ated Circuits (VHSIC) prc^ram; 
,:,ir \ 
(5) $15,000,000 is available only for the Pave Tiger system; and 
(6) $11,742,000 is available only for the Software Engineering 
Institute. 
SEC. 207. UMITATIONS ON FUNDS FOR THE DEFENSE AGENCIES 
(a) IN GENERAL.—Of the amount authorized in section 201 for the 
Ante, p. 605. 
Defense Asrencies 
(1) $300,000,000 is available only for the Joint Advanced 
Systems program; 
(2) $81,250,000 is available only for the University Research 
Initiative prc^ram, of which $1,000,000 is available only for 
computer and related research at Sjn-acuse University, Syra-
cuse, New York; 
(3) $1,000,000 is available for use by the Defense Logistics 
Agen(^ to conduct a demonstration of advanced clothing manu-
facturing technology and to procure and field test military 
clothing produced using advanced manufacturing techniques; 
(4) $500,000 is available only for use by the Defense Logistics 
Agency for the Military Sewn Products Automation P r t ^ a m 
(MILSPA); and 
(5) $142,000,000 is available only for the Strategic Computing 
Initiative. 
O
b
) LIMITATION OF FUNDS FOR THE JOINT TACTICAL INFORMATION 
DISTRIBUTION SYSTEM (JTIDS) .—Of the amount authorized in sec-
tion 201 for the Defense Agencies, $200,000,000 is available only for 
research and development of a common Joint Tactical Information 
Distribution System (JTIDS) program. None of such amount may be 
99 STAT. 610 
PUBLIC LAW 99-145—NOV. 8, 1985 
obligated or expended until the Secretary of Defense selects a single 
JTIDS program to meet the operational requirements of both the 
Report. 
Navy and the Air Force. If the Secretary of Defense determines that 
such a selection is not feasible or is not practicable, the Secretary 
shall submit to the Committees on Armed Services of the Senate and 
House of Representatives a report in writing setting forth the 
specific reasons for not proceeding with a common JTIDS program. 
The Secretary may not obligate or expend funds for the development 
or procurement of separate JTIDS programs for the Navy and Air 
Force until seven days of continuous session of Congress have 
expired following the date on which such report was submitted. For 
purposes of the preceding sentence, continuity of a session of Con-
gress is determined as provided in section 7307(b)(2) of title 10, 
United States Code. 
10 use 139 
SEC. 208. TESTING OF ANTISATELLITE WEAPONS AND SPACE SURVIV-
note. 
ABILITY PROGRAM 
Prohibitions. 
(a) REQUIREMENT REGARDING THE USE OF FUNDS.—None of the 
funds appropriated pursuant to an authorization in this or any other 
Act may be obligated or expended to test against an object in space 
the miniature homing vehicle (MHV) anti-satellite 
warhead 
launched from an F-15 aircraft unless the President has made a 
determination and a certification to the Congress as provided in 
section 8100 of the Department of Defense Appropriations Act, 1985 
(as contained in section 101(h) of Public Law 98-473 (98 Stat. 1941)). 
(b) LIMITATION ON NUMBER OF TESTS.—Not more than three tests 
described in subsection (a) may be conducted before October 1, 1986. 
(c) FUNDING FOR AIR FORCE SPACE SURVIVABIUTY PROGRAM.—Of 
the amount authorized to be appropriated for the Air Force in 
Ante, p. 605. 
section 201, $15,000,000 is available only for the satellite surviv-
ability project of the Air Force Space Survivability Program. 
SEC. 209. SMALL INTERCONTINENTAL BALLISTIC MISSILE PROGRAM 
(a) AMOUNT AUTHORIZED FOR FY86.—Of the amount authorized in 
Ante, p. 605. 
section 201 for the Air Force, $724,500,000 is available only for 
research, development, test, and evaluation carried out with respect 
to the small mobile intercontinental ballistic missile within the 
intercontinental ballistic missile modernization program. 
(b) MAINTENANCE OF PRIORITY FOR SMALL MOBILE I C B M PRO-
GRAM.—The Secretary of Defense shall continue to carry out the 
program to develop a small mobile intercontinental ballistic missile, 
and to provide for the allocation of defense industrial resources for 
that program, in accordance with the priority for that program 
(known as "Brick-Bat") in effect on June 1, 1985, under the system 
provided by existing laws and regulations for determining relative 
program precedence for Eissignment of production resources. 
Report. 
(c) PROCEDURES 
REQUIRED BEFORE DECISIONS 
ON 
FULL-SCALE 
DEVELOPMENT AND BASING SITE SELECTION FOR SMALL ICBM.—(1) 
Before any decision may be made by the President or the Secretary 
of Defense with regard to the full-scale development of a small 
intercontinental ballistic missile or the selection of basing areas for 
the deployment of such missile, the Secretary of the Air Force shall 
prepare and submit to the appropriate committees of Congress a 
legislative environmental impact statement with respect to such 
development and such selection. In making any such decision, the 
President and the Secretary of Defense shall take into consideration 
the findings and conclusions contained in any such report. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 611 
(2) The legislative environmental impact statement required by 
paragraph (1) shall be prepared in accordance with the require-
ments applicable to such statements prepared under section 1506.8 
of title 40 of the Code of Federal Regulations (as in effect on May 16, 
1985). 
(3) A legislative environmental impact statement prepared and 
submitted to the appropriate committees pursuant to paragraph (1) 
shall be deemed to meet all the requirements of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with 
respect to all aspects of the full-scale development of a small inter-
continental ballistic missile and the selection of basing areas for the 
deployment of such missile. 
(4) Preparation of a legislative environmental impact statement 
pursuant to paragraph (1) shall not relieve the Secretary of Defense 
from any obligation for the subsequent preparation of administra-
tive environmental impact statements with respect to the environ-
mental impact on specifically selected sites within the chosen areas 
for the deployment and peacetime operation of small interconti-
nental ballistic missiles. 
SEC. 210. ADVANCED MEDIUM-RANGE AIR-TO-AIR MISSILE (AMRAAM) 
SYSTEM 
(a) LIMITATION ON FUNDING.—(1) Of the amount authorized in 
section 201 for the Air Force, $101,382,000 is available for the 
Ante, p. 605. 
Advanced Medium-Range Air-to-Air Missile (AMRAAM) program. 
(2) Of the amount appropriated pursuant to the authorization in 
section 201 for the Air Force, $54,382,000 may not be obligated or 
expended until the Secretary of Defense submits to the Committees 
on Armed Services of the Senate and House of Representatives a 
certification as described in subsection (b). 
(b) CERTIFICATION.—A certification under subsection (a) shall be in 
writing and shall include confirmation by the Secretary of the 
following: 
(1) That (A) the design of the AMRAAM system has been 
completed, (B) system performance has not been degraded from 
the original development specification (DS 32050-000, as amend-
ed by the draft Development Concept Paper (DCP) of June 14, 
1985), and (C) the flight test program has been revised to 
incorporate the maximum practicable number of selected 
changes in the design of the AMRAAM system that reduce the 
costs of the system and that are qualified and flight tested 
before production. 
(2) That a fixed-price tjrpe contract for an amount not more 
than $556,580,480 has been entered into with the development 
contractor for research, development, test, and evaluation for 
such program. 
(3) That the total production cost for the program, for a 
minimum of 17,000 missiles, will not exceed $5,200,000,000 (in 
fiscal year 1984 dollars) and that the missiles procured will 
perform in accordance with the development specification re-
ferred to in paragraph (1). 
(c) NoNCERTiFiCATiON.—If the Secretary of Defense cannot make a 
certification under subsection (a) by March 1, 1986, the AMRAAM 
program shall be terminated as of that date with no subsequent 
Grovernment liability. 
99 STAT. 612 
PUBLIC LAW 99-145—NOV 8, 1985 
SEC. 211. HIGH-SPEED ANTI-RADIATION MISSILE (HARM) PROGRAM 
Report. 
(a) LIMITATION ON NAVY FUNDING.—Of the amount appropriated 
Ante, p. 605. 
pursuant to the authorization in section 201 for the Navy (including 
the Marine Corps), $100,000,000 may not be obligated or expended 
until the Secretary of the Navy submits to Congress a certification 
as described in subsection (c) or a report as described in subsection 
(d). 
Report. 
(b) LIMITATION ON AIR FORCE FUNDING.—Of the amount appro-
Ante, p. 605. 
priated pursuant to the authorization in section 201 for the Air 
Force, $50,000,000 may not be obligated or expended until the 
Secretary of the Air Force submits to Congress a certification as 
described in subsection (c) or a report as described in subsection (d). 
(c) CERTIFICATION.—A certification under subsection (a) or (b) shall 
be in writing and shall include a certification by the Secretary 
concerned of the following: 
(1) That the test and evaluation of the High-Speed Anti-
Radiation Missile (HARM) shows conclusively that the missile 
system meets all performance specifications and objectives 
delineated in the HARM weapon system specification—AS 3400 
Revision A, dated August 6,1982. 
(2) That a current production missile has been disassembled 
and that there is complete correlation with such missile and the 
current technical-data package (including the engineering draw-
ings and software) and that HARM production missiles are 
being constructed to these drawings. 
(3) That the HARM missile system is capable of engaging the 
intended threat as approved by the Director of Central Intel-
ligence. 
(4) That the program to develop the HARM low-cost seeker is 
structured to meet an intended Initial Operational Capability 
(IOC) date during 1991. 
(d) REPORT ON DEFICIENCIES.—(1) If the Secretary of the Navy 
cannot make a certification under subsection (c) because of defi-
ciencies in the HARM system, then the Secretary may obligate and 
expend funds without regard to the limitation in subsection (a) after 
submitting to Congress a written report described in paragraph (3). 
(2) If the Secretary of the Air Force cannot make a certification 
under subsection (c) because of deficiencies in the HARM system, 
then the Secretary may obligate and expend funds without regard to 
the limitation in subsection (b) after submitting to Congress a 
written report described in paragraph (3). 
(3) A report under paragraph (1) or (2) shall include— 
(A) a detailed list of the deficiencies in the HARM system; and 
(B) a plan to correct such deficiencies, including milestones 
and required levels of funding, and a request to Congress to 
reprogram funds for the purpose of correcting such deficiencies. 
(e) PROHIBITION ON EXPENDITURES TO CORRECT SPECIFIED DEFI-
CIENCIES.—The Secretary of the Navy and the Secretary of the Air 
Force may not obligate or expend any funds to correct deficiencies in 
the HARM system in order to meet the weapons system perform-
ance specifications described in subsection (cXD. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 613 
PART B—STRATEGIC DEFENSE INITIATIVE 
SEC. 221. FUNDING FOR FISCAL YEAR 1986 
Of the amount authorized in section 201 for the Defense Agencies, 
Ante, p. 605. 
$2,750,000,000 is available for the Strategic Defense Initiative, of 
which $12,500,000 is available only for the medical application of 
free-electron lasers and associated material and physical science 
research. 
SEC. 222. REQUIREMENT FOR SPECIFIC AUTHORIZATION FOR DEPLOY- 
10 USC 139 note. 
MENT OF STRATEGIC DEFENSE INITIATIVE SYSTEM 
A strategic defense system developed as a consequence of re-
search, development, test, and evaluation conducted on the Strategic 
Defense Initiative program may not be deployed in whole or in part 
unless— 
(1) the President determines and certifies to Congress in 
writing that— 
(A) the system is survivable (that is, the system is able to 
maintain a sufficient degree of effectiveness to fulfill its 
mission, even in the face of determined attacks against it); 
and 
(B) the system is cost effective at the margin to the extent 
that the system is able to maintain its effectiveness against 
the offense at less cost than it would take to develop 
offensive countermeasures and proliferate the ballistic mis-
siles necessary to overcome it; and 
(2) funding for the deployment of such system has been 
specifically authorized by legislation enacted after the date on 
which the President makes the certification to Congress. 
- >
v 
SEC 223. REPORTS ON STRATEGIC DEFENSE INITIATIVE 
(a) REPORT ON POTENTIAL RESPONSES TO S D I AND ON R D T & E 
COSTS.—(1) The Secretary of Defense shall submit to Congress a 
report as to— 
(A) what probable responses can be expected from potential 
enemies should the Strategic Defense Initiative programs be 
carried out to procurement and deployment, such as what 
increase may be anticipated in offensive enemy weapons in an 
enemy's attempt to penetrate the defensive shield by increasing 
the numbers or qualities of its offensive weapons; 
(B) what can be expected from potential enemies in the 
deployment of weapons not endangered by the Strategic 
Defense Initiative, such £is cruise missiles and low trajectory 
submarine missiles; 
(C) the degree of the dependency of success for the Strategic 
Defense Initiative upon a potential enemy's anti-satellite weap-
ons capability; and 
(D) the cost estimates for the research, development, test, and 
evaluation for the proposed Strategic Defense Initiative. 
(2) The report required by paragraph (1) shall be submitted to 
Congress with the request of the Secretary of Defense for appropria-
tions for the Strategic Defense Initiative for fiscal year 1987. 
Ob) REPORT ON PROCUREMENT AND DEPLOYMENT COSTS.—The Sec-
retary of Defense shall submit to Congress a report on the cost 
estimates for procurement and deployment of Strategic Defense 
Initiative programs. The report shall be submitted as soon as pos-
99 STAT. 614 
PUBLIC LAW 99-145—NOV. 8, 1985 
sible, but not later than submission of the budget request of the 
Department of Defense for fiscal year 1989. 
SEC. 224. CONGRESSIONAL POLICY REGARDING CONSULTATION WITH 
OTHER MEMBERS OF NATO ON THE STRATEGIC DEFENSE INI-
TIATIVE 
(a) Ck)MMENDATiON OF PRESIDENT'S AcTiON.—The Congress com-
mends the President's attempts to initiate cooperation between the 
United States and other member nations of the North Atlantic 
Treaty Organization (NATO) on the Strategic Defense Initiative. 
(b) CJONSULTATION AND COOPERATION WiTH OTHER NATO NA-
TIONS.—It is the sense of Congress— 
(1) that the mutual defense of NATO member nations is 
strengthened when there is a high degree of consultation and 
cooperation among member nations; and 
President of U.S. 
(2) that the President should continue consultations with 
other member nations of NATO on the Strategic Defense Initia-
tive program and, to the maximum extent feasible and within 
national security guidelines, keep such member 
nations 
informed of the progress, plans, and potential proposals of the 
United States regarding such p n ^ a m . 
SEC. 225. CONGRESSIONAL EXPRESSION ON THE STRATEGIC DEFENSE 
INITIATIVE AND THE ABM TREATY 
(a) FINDINGS REGARDING ABM TREATY.—The Congress finds-
CD that the President's Commission on Strategic Forces 
declared in its report to the President, dated March 21, 1984, 
that "One of the most successful arms control agreements is the 
23 UST 3435. 
Anti-Ballistic Missile Treaty of 1972"; and 
(2) that the Secretary of State has stated that the "ABM 
Treaty requires consultations, and the President has explicitly 
recc^nized that any ABM-related deployments arising from 
research into ballistic missile defenses would be a matter for 
consultations and n^otiation between the Parties". 
(b) SENSE OF CONGRESS REGARDING S D I AND THE ABM TREATY.—It 
is the sense of Congress— 
Union of 
(1) that it fuUy supports the declared policy of the President 
Soviet Socialist 
that a principal objective of the United States in negotiations 
Republics. 
with the Soviet Union on nuclear and space arms is to reverse 
the erosion of the Anti-Ballistic Missile Treaty of 1972; 
(2) that action by the Congress in approving funds for re-
search on the Strategic Defense Initiative— 
(A) does not express or imply an intention on the part of 
the Congress that the United States should abrogate, vio-
late, or otherwise erode such treaty; and 
(B) does not express or imply any determination or 
commitment on the part of the Congress that the United 
States develop, test, or deploy ballistic missile strategic 
defense weaponry that would contravene such treaty; and 
(3) that funds appropriated for the S t r a t ^ c Defense Initiative 
prc^ram should not be used in a manner inconsistent with any of 
the treaties commonly known as the Limited Test Ban Treaty, the 
Threshold Test Ban Treaty, the Outer Space Treaty, or the Anti-
23 UST 3435. 
Ballistic Missile Treaty of 1972. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 615 
SEC. 226. REPORT ON STRATEGIC AND THEATER BALLISTIC MISSILE 
DEFENSES 
(a) REQUIREMENT FOR STUDY.—The Secretary of Defense shall 
conduct a study to examine the feasibility and military value of the 
early application of defenses against ballistic missile attack from the 
standpoint of— 
(1) defending high value United States and allied capabilities 
abroad; and 
(2) defending United States strategic deterrent capabilities. 
(b) MATTERS TO BE INCLUDED IN STUDY.—The study shall specifi-
cally address— 
(1) the contribution such defenses could make to deterrence 
stability; 
(2) the adequacy in this regard of existing programs, including 
in particular the Strategic Defense Initiative; and 
(3) the adequacy of the Army's Anti-Tactical Missile (ATM) 
program for allied defense. 
(c) REPORT ON STUDY.—The Secretary of Defense shall submit to 
Congress a report containing the results of such study not later than 
February 15,1986. 
TITLE III—OPERATION AND MAINTENANCE 
SEC. 301. AUTHORIZATION OF APPROPRIATIONS 
(a) IN GENERAL.—Funds are hereby authorized to be appropriated 
for fiscal year 1986 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: 
For the Army, $19,177,351,000. 
For the Navy, $24,608,847,000. 
For the Marine Corps, $1,626,700,000. 
For the Air Force, $20,096,089,000. 
For the Defense Agencies, $7,553,333,000. 
For the Army Reserve, $780,100,000. 
For the Naval Reserve, $900,590,000. 
For the Marine Corps Reserve, $57,170,000. 
For the Air Force Reserve, $902,144,000. 
For the Army National Guard, $1,625,780,000. 
For the Air National Guard, $1,806,162,000. 
For the National Board for the Promotion of Rifle Practice, 
$920 000 
For Defense Claims, $143,300,000. 
For the Court of Military Appeals, $3,200,000. 
(b) GENERAL AUTHORIZATION FOR CONTINGENCIES.—There are 
au-
thorized to be appropriated for fiscal year 1986, in addition to the 
amounts authorized to be appropriated in subsection (a), such sums 
as may be necessary— 
(1) for unbudgeted increases in fuel costs; 
(2) for unbudgeted increases as a result of inflation in the cost 
of activities authorized by subsection (a); and 
(3) for unbudgeted amounts for salary, pay, retirement, and 
other employee benefits authorized by law for civilian employ-
ees of the Department of Defense whose compensation is pro-
vided for by funds authorized to be appropriated in subsection 
(a). 
99 STAT. 616 
PUBLIC LAW 99-145—NOV. 8, 1985 
(c) ADDITIONAL AUTHORIZATION FOR ARMY NATIONAL GUARD.—In 
addition to the amounts authorized to be appropriated in subsection 
(a), there are authorized to be appropriated such sums as may be 
necessary for the Army National Guard for— 
(1) armory operating costs; 
(2) modification or repair of work space for full-time National 
Guard personnel; and 
(3) partial Federal funding for major repair and renovation of 
National Guard facilities. 
(d) TRANSFER OF FUNDS.—Funds are hereby authorized to be 
transferred, to the extent provided in appropriation Acts, from the 
Foreign Currency Fluctuations, Defense fund to the operation and 
maintenance accounts of the military departments in amounts £is 
follows: 
For the Army, $156,000,000. 
For the Navy, $156,000,000. 
For the Air Force, $156,000,000. 
SEC. 302. AUTHORIZATION OF APPROPRIATIONS FOR WORKING-CAPITAL 
FUNDS 
Funds are hereby authorized to be appropriated for fiscal year 
1986 to provide capital for working-capital funds of the Department 
of Defense in amounts as follows: 
For the Army Stock Fund, $393,000,000. 
For the Navy Stock Fund, $638,500,000. 
For the Marine Corps Stock Fund, $37,700,000. 
For the Air Force Stock Fund, $415,900,000. 
For the Defense Stock Fund, $174,500,000. 
SEC. 303. LIMITATION ON THE USE OF O&M FUNDS TO PURCHASE INVEST-
MENT ITEMS 
Funds appropriated for fiscal year 1986 for operation and mainte-
nance of the Department of Defense pursuant to the authorizations 
Ante, p. 615. 
of appropriations in section 301 may not be used to purchase any 
item with a unit cost of $5,000 or more if purchases of such item 
during fiscal year 1985 were chargeable to appropriations made to 
the Department of Defense for procurement. 
SEC. 304. ASSISTANCE FOR THE TENTH INTERNATIONAL PAN AMERICAN 
GAMES 
(a) AUTHORITY TO PROVIDE SUPPORT SERVICES.—The Secretary of 
Defense may— 
(1) provide logistical support and personnel services to the 
Tenth Pan Am Games; 
(2) lend and provide equipment in support of the Tenth Pan 
Am Games; and 
(3) provide such other services in support of the Tenth Pan 
Am Games as the Secretary considers advisable. 
(b) AUTHORIZATION OF APPROPRIATIONS; LIMITATION.—(1) There is 
authorized to be appropriated to the Secretary of Defense for fiscal 
year 1986 an amount not to exceed $10,000,000 for the purpose of 
carrying out subsection (a). 
(2) Except as provided in paragraph (3), funds may not be 
obligated for the purpose of carrying out subsection (a) unless 
specifically appropriated for such purpose. 
(3) Paragraph (2) does not apply to funds used for pay and non-
travel-related allowances for members of the Armed Forces (other 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 617 
than pay and allowances of members of the reserve components 
called or ordered to active duty to provide support for the Tenth Pan 
Am Games). 
(4) The costs for pay and non-travel-related allowances of mem-
bers of the Armed Forces (other than members of the reserve 
components called or ordered to active duty to provide support for 
the Tenth Pan Am Games) may not be charged to appropriations 
made pursuant to the authorization in paragraph (1). 
(c) DEFiNiTfON.—For the purposes of this section, the term "Tenth 
Pan Am Games" means the Tenth International Pan American 
Games, to be held at Indianapolis, Indiana, during the period begin-
ning on August 7,1987, and ending on August 23,1987. 
SEC. 305. AUTHORIZATION OF APPROPRIATIONS FOR TRANSPORTATION 
OF HUMANITARIAN RELIEF SUPPLIES TO AFGHAN REFUGEES 
(a) AUTHORIZATION OF FUNDS.—There is hereby authorized to be 
appropriated to the Department of Defense for fiscal year 1986 the 
sum of $10,000,000 for the purpose of providing transportation for 
humanitarian relief for persons displaced or who are refugees be-
cause of the invasion of Afghanistan by the Soviet Union. 
(b) TRANSPORTATION UNDER DIRECTION OF THE SECRETARY OF 
STATE.—Transportation provided with funds appropriated pursuant 
to the authorization in this section shall be under the direction of 
the Secretary of State. 
(c) MEANS OF TRANSPORTATION TO BE USED.—Transportation for 
humanitarian relief provided with funds appropriated pursuant to 
the authorization in this section shall be by the most economical 
commercial or military means available, unless the Secretary of 
State determines that it is in the national interest of the United 
States to use means other than the most economical available. Such 
means may include the use of aircraft and personnel of the reserve 
components of the Armed Forces. 
SEC. 306. EXTENSION AND EXPANSION OF AUTHORITY OF THE SEC-
RETARY OF DEFENSE TO TRANSPORT HUMANITARIAN RELIEF 
SUPPLIES TO CERTAIN COUNTRIES 
(a) Sectic^n 1540(a) of the Department of Defense Authorization 
Act, 1985 (Public Law 98-525; 98 Stat. 2637), is amended— 
(1) by striking out "fiscal year 1985" and inserting in lieu 
thereof "fiscal years 1985 and 1986"; and 
(2) by striking out "Central America" and inserting in lieu 
thereof "any area of the world". 
(b) The heading of section 1540 of such Act is amended to read as 
follows: 
"AUTHORIZATION FOR SECRETARY OF DEFENSE TO TRANSPORT 
t H: 
HUMANITARIAN REUEF SUPPLIES TO FOREIGN COUNTRIES". 
SEC. 307. LIMITATIONS CONCERNING AIR NATIONAL GUARD AND AIR 
FORCE RESERVE FLYING UNITS 
Funds appropriated to or for the use of the Secretary of the Air 
Force may not be used to deactivate or divest of its flying mission 
any flying unit of the Air National Guard or the Air Force Reserve 
until— 
(1) the Secretary has notified in writing the Committees on 
Armed Services of the Senate and House of Representatives of 
the Secretary's intent to expend funds for such purpose; and 
99 STAT. 618 
PUBLIC LAW 99-145—NOV. 8, 1985 
(2) 60 days have elapsed following receipt of that notification. 
10 u s e 133 note. 
SEC. 308. COMMISSARY AND EXCHANGE PRIVILEGES FOR SURVIVORS OF 
CERTAIN RESERVISTS 
(a) BENEFITS FOR CERTAIN DEPENDENTS.—The Secretary of Defense 
shall prescribe regulations to allow dependents of members of the 
uniformed services described in subsection (b) to use commissary 
and exchange stores on the same basis as dependents of members of 
the uniformed services who die while on active duty for a period of 
more than 30 days. 
(b) COVERED DEPENDENTS.—A dependent referred to in subsection 
(a) is a dependent of a member of a uniformed service who died— 
(1) while on active duty, active duty for training, or inactive 
duty training (regardless of the period of such duty); or 
(B) while traveling to or from the place at which the member 
is to perform, or has performed, active duty, active duty for 
training, or inactive duty training (regardless of the period of 
such duty). 
(c) DEFINITION.—For the purposes of this section, the term "uni-
formed services" has the meaning given such term in section 101 
of title 37, United States Code. 
TITLE IV—MILITARY PERSONNEL 
AUTHORIZATIONS 
PART A—ACTIVE FORCES 
SEC. 401. AUTHORIZATION OF END STRENGTHS 
The Armed Forces are authorized strengths for active-duty 
personnel as of September 30,1986, as follows: 
(1) The Army, 780,800. 
(2) The Navy, 581,300. 
(3) The Marine Corps, 198,800. 
(4) The Air Force, 606,470. 
SEC. 402. EXTENSION OF QUALITY CONTROL ON ENLISTMENTS INTO THE 
ARMY 
Effective on October 1, 1985, section 302(a) of the Department of 
98 Stat. 2516. 
Defense Authorization Act, 1981 (10 U.S.C. 520 note), is amended by 
striking out "October 1,1984" and "September 30, 1985" and insert-
ing in lieu thereof "October 1, 1985'^ and "September 30, 1986", 
respectively. 
PART B—RESERVE FORCES 
10 u s e 261 note. 
SEC. 411. AUTHORIZATION OF AVERAGE STRENGTHS FOR SELECTED RE-
SERVE 
(a) IN GENERAL.—For fiscal year 1986, the Selected Reserve of the 
reserve components of the Armed Forces shall be programmed to 
attain average strengths of not less than the following: 
(1) The Army National Guard of the United States, 440,025. 
(2) The Army Reserve, 290,639. 
(3) The Naval Reserve, 134,212. 
(4) The Marine Corps Reserve, 41,900. 
(5) The Air National Guard of the United States, 108,700. 
(6) The Air Force Reserve, 75,600. 
(7) The Coast Guard Reserve, 12,500. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 619 
O
t
>
) ADJUSTMENTS.—The average strengths prescribed by subsec-
tion (a) for the Selected Reserve of any reserve component shall be 
proportionately reduced by (1) the total authorized strength of units 
organized to serve as units of the Selected Reserve of such compo-
nent which are on active duty (other than for training) at any time 
during the fiscal year, and (2) the total number of individual mem-
bers 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 any time during the fiscal year. Whenever such units or such 
individual members are released from active duty during any fiscal 
year, the average strength prescribed for such fiscal year for the 
Selected Reserve of such reserve component shall be proportionately 
increased by the total authorized strength of such units and by the 
total number of such individual members. 
SEC. 412. AUTHORIZATION OF END STRENGTHS FOR RESERVES ON ACTIVE 
DUTY IN SUPPORT OF THE RESERVE COMPONENTS 
(a) IN GENERAL.—Within the average strengths prescribed in 
section 411, the reserve components of the Armed Forces are au- 
Ante, p. 618. 
thorized, as of September 30,1986, the following number of Reserves 
to be serving on full-time active duty or, in the case of members of 
the National Guard, on full-time National Guard duty for the 
purpose of organizing, administering, recruiting, instructing, or 
training the reserve components or the National Guard: 
(1) The Army National Guard of the United States, 23,731. 
(2) The Army Reserve, 12,157. 
(3) The Naval Reserve, 19,010. 
(4) The Marine Corps Reserve, 1,475. 
(5) The Air National Guard of the United States, 7,269. 
(6) The Air Force Reserve, 635. 
(b) AUTHORITY TO INCREASE END-STRENGTH LIMIT.—Upon a deter-
mination by the Secretary of Defense that such action is in the 
national interest, the end strengths prescribed by subsection (a) may 
be increased by a total of not more than the number equal to 2 
percent of the total end strengths prescribed. 
SEC. 
4
1
3
. 
INCREASE 
I
N 
NUMBER 
OF 
CERTAIN 
PERSONNEL 
AUTHORIZED 
TO 
BE 
ON 
ACTIVE 
DUTY 
I
N 
SUPPORT 
OF 
THE 
RESERVE 
COMPO-
NENTS 
(a) SENIOR ENLISTED MEMBERS.—The table in section 517(b) of title 
10, United States Code, is amended to read as follows: 
98 Stat. 2517. 
"Grade 
E-9 
E-8 
Army 
517 
2,295 
Navy 
165 
381 
Air 
Force 
80 
358 
Marine 
Corps 
9 
74". 
(b) OFFICERS.—The table in section 524(a) of such title is amended 
98 Stat. 2518. 
to read as follows: 
10 USC 524. 
51-194 O - 88 - 21 : QL. 3 
Part 1 
99 STAT. 620 
PUBLIC LAW 99-145—NOV. 8, 1985 
"Grade 
Army 
Navy 
Air 
Marine 
Force 
Corps 
Major or Lieutenant Commander 
2,317 
Lieutenant Colonel or Commander 
1,152 
Colonel or Navy Captain 
348 
850 
520 
1
7
7 
476 
318 
1
8
9 
1
0
0 
60 
25" 
10 use 517 note. 
(c) EFFECTIVE DATE.—The amendments made by subsections (a) 
and (b) shall take effect on October 1,1985. 
PART C—MILITARY TRAINING 
SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS 
(a) IN GENERAL.—For fiscal year 1986, the components of the 
Armed Forces are authorized average military training student 
loads as follows: 
(1) The Army, 79,686. 
(2) The Navy, 71,018. 
(3) The Marine Corps, 20,766. 
(4) The Air Force, 43,389. 
(5) The Army National Guard of the United States, 18,886. 
(6) The Army Reserve, 16,985. 
(7) The Naval Reserve, 3,355. 
(8) The Marine Corps Reserve, 3,790. 
(9) The Air National Guard of the United States, 2,751. 
(10) The Air Force Reserve, 2,118. 
(h) ADJUSTMENTS.—The average military student loads for the 
Army, the Navy, the Marine Corps, and the Air Force and the 
reserve components authorized in subsection (a) for fiscal year 1986 
shall be adjusted consistent with the personnel strengths authorized 
in parts A and B. Such adjustment shall be apportioned among the 
Army, the Navy, the Marine Corps, and the Air Force and the 
reserve components in such manner as the Secretary of Defense 
shall prescribe. 
TITLE V—DEFENSE PERSONNEL POLICY 
PART A—CIVILIAN PERSONNEL 
SEC. 501. WAIVER OF CIVILIAN PERSONNEL CEILINGS FOR FISCAL YEAR 
1986 
The provisions of section 138(c)(2) of title 10, United States Code, 
shall not apply with respect to fiscal year 1986 or with respect to the 
appropriation of funds for that year. 
SEC. 502. PROHIBITION ON MANAGING CIVILIAN PERSONNEL BY END-
STRENGTHS DURING FISCAL YEAR 1986 
(a) PROHIBITION.—During fiscal year 1986, the civilian personnel 
of the Department of Defense may not be managed on the basis of 
any end-strength, and the management of such personnel during 
that fiscal year shall not be subject to any constraint or limitation 
(known as an "end-strength") on the number of such personnel who 
may be employed on the last day of such fiscal year. 
(b) FY86 REPORTS.—Not later than February 1, 1986, the Secretary 
of Defense and the Director of the Office of Management and Budget 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 621 
shall each submit to the Committees on Armed Services of the 
Senate and House of Representatives a report on the experience of 
the Department of Defense during fiscal years 1985 and 1986 (to the 
date of the report) concerning the management of civilian personnel 
of the Department without a congressionally imposed civilian end 
strength and with a statutory prohibition on the management 
during those fiscal years of such civilian personnel by end strength. 
Each such report shall include the views of the Secretary or Direc-
tor, as appropriate, with respect to the desirability of managing such 
personnel in such a manner. 
(c) QUARTERLY REPORTS.—(1) The Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and the 
House of Representatives quarterly reports on the obligation of 
funds appropriated for civilian personnel of the Department of 
Defense for fiscal year 1986. Each report shall include— 
(A) for each appropriation account, the amounts authorized 
and appropriated for such personnel for fiscal year 1986; 
(B) for each appropriation account and for the entire Depart-
ment— 
(i) the actual number of such personnel employed, and 
the amount of funds obligated for such personnel, as of the 
end of the fiscal year quarter described in the report; and 
(ii) the projected number of such personnel to be em-
ployed, and the amount of funds that will be obligated for 
such personnel, as of the end of fiscal year 1986. 
(2) Each report required by paragraph (1) shall be submitted as 
soon as possible after the end of the fiscal year quarter described in 
the report. 
SEC. 503. EXERCISE OF CERTAIN AUTHORITIES RELATING TO CIVILIAN 
EMPLOYEES OF THE DEPARTMENT OF DEFENSE 
(a) FINDINGS.—The Congress finds-
C
D that in National Security Decision Directive 84, issued by 
the President on March 11, 1983, the President directed the 
Attorney General to establish, after consultation with the Direc-
tor of the Office of Personnel Management, an interdepart-
mental group to— 
(A) study security procedures in effect with respect to 
Federal employees; and 
(B) recommend appropriate revisions in Executive orders, 
regulations, and guidelines pertaining to such procedures; 
and 
(2) that on May 1,1984, the interdepartmental group referred 
to in clause (1) requested, in a memorandum to the Assistant to 
the President for National Security Affairs, that guidance be 
furnished to the group on matters relating to the study referred 
to in paragraph (IXA). 
(b) DIRECTION TO FURNISH GUIDANCE.—Before the end of the 60-
day period beginning on the date of the enactment of this Act, the 
President shall transmit to the interdepartmental group referred to 
in subsection (a) the guidance requested in the memorandum re-
ferred to in subsection (aX2). 
(c) REPORT REQUIREMENT.—Before the end of the 90-day period 
beginning on the date that the President transmits the guidance 
pursuant to subsection (b), the interdepartmental group shall trans-
mit to Congress a report on its findings and recommendations. 
99 STAT. 622 
PUBLIC LAW 99-145—NOV. 8, 1985 
(d) AUTHORITY OF THE SECRETARY OF DEFENSE.—Subject to subsec-
tion (e), the Secretary of Defense shall exercise the following 
authorities with respect to civilian employees of the Department of 
Defense: 
(1) Authorities assigned to the Director of the Office of 
Personnel Management under section 5.2(a) of Executive Order 
Number 10577 (5 U.S.C. 3301 note), relating to investigation of 
the suitability of applicants. 
Government 
(2) Authorities assigned to the Office of Personnel Manage-
organization 
ment Under Executive Order Number 10450 (5 U.S.C. 7311 note), 
and employees. 
relating to security requirements for Federal employees. 
(e) AUTHORITY OF THE PRESIDENT.—(1) Subsection (d) shall not take 
effect if the President directs, on or before the date of the transmit-
tal to Congress of the report described in subsection (c), that the 
authorities referred to in subsection (d) shall not be exercised by the 
Secretary of Defense. 
(2) The authority of the President under paragraph (1) may not be 
delegated. 
SEC. 504. MODIFICATION AND STUDY OF DEPARTMENT OF DEFENSE CI-
VILIAN PERSONNEL CLASSIFICATION AND PAY SYSTEMS 
(a) CiviuAN FACULTY MEMBERS OF AIR FORCE INSTITUTE OF 
TECHNOLOGY.—(1) Section 9314 of title 10, United States Code, is 
amended— 
(A) by inserting "(a)" before "When"; and 
(B) by adding at the end thereof the following new subsection: 
"(bXl) The Secretary of the Air Force may employ as many 
civilian faculty members at the United States Air Force Institute of 
Technology as is consistent with the needs of the Air Force and with 
Department of Defense personnel limits. 
"(2) The Secretary shall prescribe regulations determining— 
"(A) titles and duties of civilian members of the faculty; and 
"(B) rates of basic pay of civilian members of the faculty, 
5 use 5301 et 
notwithstanding chapter 53 of title 5, but subject to the limita-
««9 
tion set out in section 5308 of title 5.". 
10 use 9314. 
(2XA) The heading of such section is amended by striking out the 
colon and the last word. 
(B) The item relating to such section in the table of sections at the 
beginning of chapter 901 of such title is amended by striking out the 
colon and the last word. 
(b) EXCLUSION FROM CIVIL SERVICE CLASSIFICATION SYSTEM.—Sec-
tion 5102(c) of title 5, United States Code, is amended— 
(1) by striking out "or" at the end of clause (26); 
(2) by striking out the period at the end of clause (27) and 
inserting in lieu thereof "; or"; and 
(3) by adding at the end thereof the following new clause: 
"(28) civilian members of the faculty of the Air Force Institute 
Supra. 
of Technology whose pay is fixed under section 9314 of title 10.". 
5 use 5102 note. 
(c) TRANSITION.—Section 9314(bX2) of title 10, United States C!ode 
(as added by subsection (aXlXB)), and section 5102(cX28) of title 5, 
United States Code (as added by subsection (b)), shall not apply to 
any person who on the date of the enactment of this Act— 
(1) is a civilian member of the faculty of the United States Air 
Force Institute of Technology; 
5 use 5332. 
(2) is paid a rate of basic pay under the General Schedule; and 
(3) elects, under procedures prescribed by the Secretary of the 
Air Force, to continue to be paid under the General Schedule. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 623 
(d) REPORT.—Not later than December 31, 1985, the Secretary of 
Defense shall submit to Congress an evaluation of the effects of the 
pay and classification systems applicable to civilian employees of the 
Department of Defense on recruitment and retention of scientists, 
engineers, technicians, and other highly skilled personnel in sci-
entific and engineering organizations in the Department. 
PART B—ACTIVE MIUTARY PERSONNEL 
SEC. 511. ADJUSTMENT IN MARINE CORPS OFFICER GRADE TABLE 
(a) INCREASE IN AUTHORIZED NUMBER OF MARINE CORPS MAJORS.— 
The table in section 523(aXl) of title 10, United States Code, is 
amended by striking out "2,717", "2,936", "3,154", "3,373", and 
"3,591" in the items relating to the Marine Corps under the column 
headed "Major" and inserting in lieu thereof "2,766", "3,085", 
"3,404", "3,723", and "4,042", respectively. 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
lo use 523 note. 
shall take effect on October 1,1985. 
SEC. 512. SERVICE AGREEMENTS OF CADETS AND MIDSHIPMEN 
(a) MIUTARY ACADEMY.—Section 4348 of title 10, United States 
Code, relating to agreements of cadets at the United States Military 
98 Stat. 2529. 
Academy, is amended to read as follows: 
"§ 4348. Cadets: agreement to serve as ofHcer 
"(a) Each cadet shall sign an agreement with respect to the cadet's 
length of service in the armed forces. The agreement shall provide 
that the cadet agrees to the following: 
"(1) That the cadet will complete the course of instruction at 
the Academy. 
"(2) That upon graduation from the Academy the cadet— 
"(A) will accept an appointment, if tendered, as a commis-
sioned officer of the Regular Army or the Regular Air 
Force; and 
"(B) will serve on active duty for at least five years 
immediately after such appointment. 
"(3) That if an appointment described in paragraph (2) is not 
tendered or if the cadet is permitted to resign as a regular 
officer before completion of the commissioned service obligation 
of the cadet, the cadet— 
"(A) will accept an appointment as a commissioned offi-
cer as a Resen'e for service in the Army Reserve or the Air 
Force Reserve; and 
"(B) will remain in that reserve component until comple-
tion of the commissioned service obligation of the cadet. 
"(bXD The Secretary of the Army may transfer to the Army 
Reserve, and may order to active duty for such period of time as the 
Secretary prescribes (but not to exceed four years), a cadet who 
breaches an agreement under subsection (a). The period of time for 
which a cadet is ordered to active duty under this paragraph may be 
determined without regard to section 651(a) of this title. 
10 use 651. 
"(2) A cadet who is transferred to the Army Reserve under 
paragraph (1) shall be transferred in an appropriate enlisted grade 
or rating, as determined by the Secretary. 
"(3) For the purposes of pargigraph (1), a cadet shall be considered 
to have breached an agreement under subsection (a) if the cadet is 
separated from the Academy under circumstances which the Sec-
99 STAT. 624 
PUBLIC LAW 99-145—NOV. 8, 1985 
retary determines constitute a breach by the cadet of the cadet's 
agreement to complete the course of instruction at the Academy and 
accept an appointment as a commissioned officer upon graduation 
from the Academy. 
Regulations. 
"(c) The Secretary of the Army shall prescribe regulations to carry 
out this section. Those regulations shall include— 
"(1) standards for determining what constitutes, for the pur-
pose of subsection (b), a breach of an agreement under subsec-
tion (a); 
"(2) procedures for determining whether such a breach has 
occurred; and 
"(3) standards for determining the period of time for which a 
person may be ordered to serve on active duty under subsection 
(b). 
"(d) In this section, 'commissioned service obligation', with respect 
to an officer who is a graduate of the Academy, means the period 
beginning on the date of the officer's appointment as a commis-
sioned officer and ending on the sixth anniversary of such appoint-
ment or, at the discretion of the Secretary of Defense, any later date 
up to the eighth anniversary of such appointment. 
"(eXl) This section does not apply to a cadet who is not a citizen or 
national of the United States. 
"(2) In the case of a cadet who is a minor and who has parents or a 
guardian, the cadet may sign the agreement required by subsection 
(a) only with the consent of a parent or guardian.". 
10 use 6959. 
(b) NAVAL ACADEMY.—Section 6959 of such title, relating to agree-
ments of midshipmen at the United States Naval Academy, is 
amended to read as follows: 
*'§ 6959. Midshipmen: agreement for length of service 
"(a) Each midshipman shall sign an agreement with respect to the 
midshipman's length of service in the armed forces. The agreement 
shall provide that the midshipman agrees to the following: 
"(1) That the midshipman will complete the course of instruc-
tion at the Naval Academy. 
"(2) That upon graduation from the Naval Academy the 
midshipman— 
"(A) will accept an appointment, if tendered, as a commis-
sioned officer of the Regular Navy, the Regular Marine 
CJorps, or the Regular Air Force; and 
"(B) will serve on active duty for at least five years 
immediately after such appointment. 
"(3) That if an appointment described in paragraph (2) is not 
tendered or if the midshipman is permitted to resign as a 
regular officer before completion of the commissioned service 
obligation of the midshipman, the midshipman— 
"(A) will accept an appointment as a commissioned offi-
cer in the Naval Reserve or the Marine Clorps Reserve or as 
a Reserve in the Air Force for service in the Air Force 
Reserve; and 
"(B) will remain in that reserve component until comple-
tion of the commissioned service obligation of the mid-
shipman. 
"(bXD The Secretary of the Navy may transfer to the Naval 
Reserve or the Marine Ck)rps Reserve, and may order to active duty 
for such period of time as the Secretary prescribes (but not to exceed 
four years), a midshipman who breaches an agreement under 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 625 
subsection (a). The period of time for which a midshipman is ordered 
to active duty under this paragraph may be determined without 
regard to section 651(a) of this title. 
10 use 651. 
"(2) A midshipman who is transferred to the Naval Reserve or 
Marine Corps Reserve under paragraph (1) shall be transferred in 
an appropriate enlisted grade or rating, as determined by the 
Secretary. 
"(3) For the purposes of paragraph (1), a midshipman shall be 
considered to have breached an agreement under subsection (a) if 
the midshipman is separated from the Naval Academy under cir-
cumstances which the Secretary determines constitute a breach by 
the midshipman of the midshipman's agreement to complete the 
course of instruction at the Naval Academy and accept an appoint-
ment as a commissioned officer upon graduation from the Naval 
Academy. 
"(c) The Secretary of the Navy shall prescribe regulations to carry 
Regulations. 
out this section. Those regulations shall include— 
"(1) standards for determining what constitutes, for the pur-
pose of subsection (b), a breach of an agreement under subsec-
tion (a); 
"(2) procedures for determining whether such a breach has 
occurred; and 
'" ' 
- * 
"(3) standards for determining the period of time for which a 
person may be ordered to serve on active duty under subsection 
(b). 
"(d) In this section, 'commissioned service obligation', with respect 
to an officer who is a graduate of the Academy, means the period 
beginning on the date of the officer's appointment as a commis-
sioned officer and ending on the sixth anniversary of such appoint-
ment or, at the discretion of the Secretary of Defense, any later date 
up to the eighth anniversary of such appointment. 
"(eXl) This section does not apply to a midshipman who is not a 
citizen or national of the United States. 
"(2) In the case of a midshipman who is a minor and who has 
parents or a guardian, the midshipman may sign the agreement 
required by subsection (a) only with the consent of a parent or 
guardian.". 
(c) Am FORCE ACADEMY.—Section 9348 of such title, relating to 
lO use 9348. 
agreements of cadets at the United States Air Force Academy, is 
amended to read as follows: 
**§ 9348. Cadets: agreement to serve as officer 
"(a) Each cadet shall sign an agreement with respect to the cadet's 
length of service in the armed forces. The agreement shall provide 
that the cadet agrees to the following: 
"(1) That the cadet will complete the course of instruction at 
the Academy. 
"(2) That upon graduation from the Academy the cadet— 
"(A) will accept an appointment, if tendered, as a commis-
sioned officer of the Re^lar Air Force; and 
"(B) will serve on active duty for at least five years 
immediately after such appointment. 
"(3) That if an appointment described in paragraph (2) is not 
tendered or if the cadet is permitted to resign as a regular 
officer before completion of the commissioned service obligation 
of the cadet, the cadet— 
99 STAT. 626 
PUBLIC LAW 99-145—NOV. 8, 1985 
"(A) will accept an appointment as a commissioned offi-
cer as a Reserve in the Air Force for service in the Air 
Force Reserve; and 
"(B) will remain in that reserve component until comple-
tion of the commissioned service obligation of the cadet. 
"(bXD The Secretary of the Air Force may transfer to the Air 
Force Reserve, and may order to active duty for such period of time 
as the Secretary prescribes (but not to exceed four years), a cadet 
who breaches an agreement under subsection (a). The period of time 
for which a cadet is ordered to active duty under this paragraph 
10 use 651. 
may be determined without regard to section 651(a) of this title. 
"(2) A cadet who is transferred to the Air Force Reserve under 
paragraph (1) shall be transferred in an appropriate enlisted grade 
or rating, as determined by the Secretary. 
"(3) For the purposes of paragraph (1), a cadet shall be considered 
to have breached an agreement under subsection (a) if the cadet is 
separated from the Academy under circumstances which the Sec-
retary determines constitute a breach by the cadet of the cadet's 
agreement to complete the course of instruction at the Academy and 
accept an appointment as a commissioned officer upon graduation 
from the Academy, 
Regulations. 
"(c) The Secretary of the Air Force shall prescribe regulations to 
carry out this section. Those regulations shall include— 
"(1) standards for determining what constitutes, for the pur-
pose of subsection (b), a breach of an agreement under subsec-
tion (a); 
"(2) procedures for determining whether such a breach has 
occurred; and 
"(3) standards for determining the period of time for which a 
person may be ordered to serve on active duty under subsec-
tion (b). 
"(d) In this section, 'commissioned service obligation', with respect 
to an officer who is a graduate of the Academy, means the period 
beginning on the date of the officer's appointment as a commis-
sioned officer and ending on the sixth anniversary of such appoint-
ment or, at the discretion of the Secretary of Defense, any later date 
up to the eighth anniversary of such appointment. 
"(eXD This section does not apply to a cadet who is not a citizen or 
national of the United States. 
"(2) In the case of a cadet who is a minor and who has parents or a 
guardian, the cadet may sign the agreement required by subsection 
(a) only with the consent of a parent or guardian.". 
10 use 4348 
(d) DEADLINE FOR REGULATIONS.—The Secretary of each military 
note. 
department shall prescribe the r^ulations required by section 
4348(c), 6959(c), or 9348(c), as appropriate, of title 10, United States 
Code (as added by the amendments made by subsections (a), (b), and 
(c)) not later than the end of the 90-day period beginning on the date 
of the enactment of this Act. 
10 use 4348 
(e) APPUCABILTFY OF AMENDMENTS.—^The amendments made by 
note. 
subsections (a), (b), and (c) (other than with respect to the authority 
of the Secretary of a military department to prescribe r^ulations)--
(1) shall take effect with respect to each military department 
on the date on which regulations prescribed by the Secretary of 
that military department in accordance with subsection (d) take 
effect; and 
(2) shall apply with respect to each agreement entered into 
under sections 4348, 6959, and 9348, respectively, of title 10, 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 627 
United States C!ode, that is entered into on or after the effective 
Ante, pp. 
date of such regulations and shall apply with respect to each 
623-625. 
such agreement that was entered into before the effective date 
of such regulations by an individual who is a cadet or mid-
shipman on such date. 
SEC. 513. TRANSFERS TO AND FROM TEMPORARY DISABILITY RETIRED 
LIST 
(a) IMPROVEMENTS IN ADMINISTRATION OF TEMPORARY DISABIUTY 
RETIRED LIST.—Chapter 61 of title 10, United States Code, relating to 
lO use 1201 et 
retirement or separation for physical disability, is amended as 
^^• 
follows: 
dXA) Sections 1201(1) and 1204(1) are amended by inserting 
10 USC 1201, 
"and stable" after "permanent nature". 
1204. 
(B) Sections 1202 and 1205 are amended by inserting "and 
lo USC 1202, 
stable" after "permanent nature" the first place it appears in 
1205. 
each section. 
(2) Section 1210 is amended— 
10 USC 1210. 
(A) by inserting "and stable" in subsections (b), (c), and (d) 
after "permanent nature"; and 
(B) in subsection (f)— 
(i) by inserting "(1)" after "(f)"; and 
(ii) by striking out "and rating" and all that follows 
and inserting in lieu thereof "or rating, the Secretary 
shall— 
"(A) treat the member £is provided in section 1211 of this title; 
10 USC 1211. 
or 
"(B) discharge the member, retire the member, or transfer the 
member to the Fleet Reserve, Fleet Marine Corps Reserve, or 
inactive Reserve under any other law if, under that law, the 
member— 
"(i) applies for and qualifies for that retirement or trans-
fer; or 
"(ii) is required to be discharged, retired, or eliminated 
,_, j ., 
from an active status. 
"(2)(A) For the purpose of paragraph (IXB), a member shall be 
considered qualified for retirement or transfer to the Fleet Reserve 
or Fleet Marine Corps Reserve or is required to be discharged, 
retired, or eliminated from an active status if, were the member 
reappointed or reenlisted under section 1211 of this title, the 
member would in all other respects be qualified for or would be 
required to be retired, transferred to the Fleet Reserve or Fleet 
Marine Corps Reserve, discharged, or eliminated from an active 
status under any other provision of law. 
"(B) The grade of a member retired, transferred, discharged, or 
eliminated from an active status pursuant to paragraph (IXB) shall 
be determined under the provisions of law under which the member 
is retired, transferred, discharged, or eliminated. The member's 
retired, retainer, severance, readjustment, or separation pay shall 
be computed as if the member had been reappointed or reenlisted 
upon removal from the temporary disability retired list and before 
the retirement, transfer, discharge, or elimination. Notwithstanding 
section 8301 of title 5, a member who is retired shall be entitled to 
5 USC 8301. 
retired pay effective on the day after the last day on which the 
member is entitled to disability retired pay.". 
(3) The second sentence of section 1211(c) is amended— 
10 USC 1211. 
99 STAT. 628 
PUBLIC LAW 99-145—NOV. 8, 1985 
(A) by inserting "and if the member is not discharged, 
retired, or transferred to the Fleet Reserve or Fleet Marine 
C!orps Reserve or inactive Reserve under section 1210 of this 
10 use 1210. 
title," after "subsection (a) or (b),"; and 
(B) by inserting "and the member shall be discharged" 
before the period. 
10 use 1448. 
(b) CONFORMING AMENDMENT.—Section 1448(c) of such title is 
amended by inserting "disability" before "retired pay". 
SEC. 514. CHANGE IN TITLE OF GRADE OF COMMODORE TO REAR AD-
MIRAL (LOWER HALF) 
(a) CHANGE IN TITLE.—(1) Section 5501 of title 10, United States 
Code, is amended by striking out "Commodore" in clause (4) and 
inserting in lieu thereof "Rear admiral (lower half)". 
(2) Section 41 of title 14, United States Code, is amended by 
striking out "commodores" and inserting in lieu thereof "rear ad-
mirals (lower half)". 
(3) Section 24 of the Coast and Geodetic Survey Commissioned 
98 Stat. 2308. 
Officers' Act of 1948 (33 U.S.C. 853u) is amended by striking out 
"commodore" each place it appears and inserting in lieu thereof 
"rear admiral (lower half)". 
(b) CONFORMING AMENDMENTS TO TITLE 10.—(1) The following 
sections of title 10, United States Code, are amended by striking out 
"commodore" each place it appears and inserting in lieu thereof 
"rear admiral (lower half)": 101(41), 525(a), 601(cX2), 611(a), 612(aX3), 
619(aX2XB), 619(cX2XAXii), 625(a), 625(c), 634, 635, 637(bX2), 638(aX3), 
638(b), 638(c), 645(lXAXii), 5138(a), 5149(b), 5442, 5444, 5457(a), and 
6389(f). 
10 use 5444. 
(2) Section 5444 of such title is amended by striking out "com-
modores" in subsections (a) and (f) and inserting in lieu thereof 
"rear admirals (lower half)". 
(3) The tables in sections 5442(a) and 5444(a) of such title are 
amended by striking out "commodores" and inserting in lieu thereof 
"rear admirals (lower half)". 
10 use 625. 
(4XA) The heading of section 625 of such title is amended to read 
as follows: 
"§ 625. Authority to vacate promotions to grades of brigadier gen-
eral and rear admiral (lower half)". 
(B) The item relating to such section in the table of sections at the 
beginning of subchapter II of chapter 36 of such title is amended to 
read as follows: 
"625. Authority to vacate promotions to grades of brigadier general £ind rear admi-
ral (lower half).". 
10 use 635. 
(5XA) The heading of section 635 of such title is amended to read 
as follows: 
"§ 635. Retirement for years of service: regular brigadier generals 
and rear admirals (lower half)". 
(B) The item relating to such section in the table of sections at the 
beginning of subchapter III of chapter 36 of such title is amended to 
read as follows: 
"635. Retirement for years of service: regular brigadier generals and rear admirals 
(lower half).". 
10 use 5442. 
(6XA) The heading of section 5442 of such title is amended to read 
as follows: 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 629 
"§5442. Navy: line officers on active duty: rear admirals (lower 
half) and rear admirals". 
(B) The item relating to such section in the table of sections at the 
beginning of chapter 533 of such title is amended to read as follows: 
"5442. Navy: line officers on active duty; rear admirals (lower half) and rear 
admirals.". 
(7XA) The heading of section 5444 of such title is amended to read 10 USC 5444. 
as follows: 
"§ 5444. Navy: staff corps officers on active duty; rear admirals 
(lower half) and rear admirals". 
(B) The item relating to such section in the table of sections at the 
beginning of chapter 533 of such title is amended to read £is follows: 
"5444. Navy: staff corps officers on active duty; rear admirals (lower half) and rear 
admirals.". 
(8) The table in section 741(a) of such title is amended by striking 98 Stat. 2873. 
out "Commodore" and inserting in lieu thereof "Rear admiral 10 USC 741. 
(lower half)". 
(c) (CONFORMING AMENDMENTS TO TITLE 14.—(1) The following 
sections of title 14, United States C!ode, are amended by striking out 
"commodore" each place it appears and inserting in lieu thereof 
"rear admiral (lower half)": 42(b), 256(a), 259(b), 271(d), 289(a), 290(a), 
421(b), 724(b), 729(e), 736(b), 740(a), 742(b), and 743. 
(2XA) The heading of section 290 of such title is amended to read 
14 USC 290. 
as follows: 
"§ 290. Rear admirals and rear admirals (lower half); continuation 
on active duty; involuntary retirement". 
(B) The item relating to such section in the table of sections at the 
beginning of chapter 11 of such title is amended to read as follows: 
"290. Rear admirals and rear admirals (lower half); continuation on active duty; in-
voluntary retirement.". 
(3XA) The heading of section 743 of such title is amended to read 
14 USC 743. 
as follows: 
"§ 743. Rear admiral and rear admiral (lower half); maximum 
service in grade". 
(B) The item relating to such section in the table of sections at the 
beginning of chapter 21 of such title is amended to read as follows: 
"743. Rear admiral and rear admiral (lower half); maximum service in grade.". 
(d) C!oNFORMiNG AMENDMENTS TO TiTLE 37.—(1) The table in sec-
tion 201(a) of title 37, United States C!ode, is amended by striking out 98 Stat. 2872. 
"Commodore" in the third column and inserting in lieu thereof 
"Rear admirsd (lower half)". 
(2XA) Section 202 of such title is amended by striking out "com- 
37 USC 202. 
modore" and inserting in lieu thereof "rear admiral (lower half)". 
(B) The heading of such section is amended to read as follows: 
"§202. Pay grades: retired Coast Guard rear admirals (lower 
half)". 
(C) The item relating to such section in the table of sections at the 
beginning of chapter 3 of such title is amended to read as follows: 
"202. Pay grades: retired Coast Guard rear admirals (lower half).". 
99 STAT. 630 
PUBLIC LAW 99-145—NOV. 8, 1985 
10 use 611 note. 
(e) TRANSITION PROVISION.—(1) An officer who on the day before 
the date of the enactment of this Act is serving in or has the grade of 
commodore shall as of the date of the enactment of this Act be 
serving in or have the grade of rear admiral (lower half). 
(2) An officer who on the day before the date of the enactment of 
this Act is on a list of officers selected for promotion to the grade of 
commodore shall as of the date of the enactment of this Act be 
considered to be on a list of officers selected for promotion to the 
grade of rear admiral (lower half). 
10 u s e 525 note. 
SEC. 515. TEMPORARY INCREASE IN THE NUMBER OF GENERAL AND FLAG 
OFFICERS AUTHORIZED TO BE ON ACTIVE DUTY IN THREE-
AND FOUR-STAR GRADES 
During fiscal year 1986, the numbers of officers authorized under 
section 525(b) of title 10, United States Code, to be on active duty in 
grades above major general and rear admiral are increased as 
follows: 
(1) ARMY UEUTENANT GENERALS.—The number of officers of 
the Army authorized to be serving on active duty in grades 
above major general is increased by one during any period of 
that fiscal year that an officer of the Army is serving as the 
Director of the Department of Defense Task Force on Drug 
Enforcement. An additional officer in a grade above major 
general by reason of this paragraph may not be in the grade of 
general. 
(2) AIR FORCE GENERALS.—The number of officers of the Air 
Force authorized to be serving on active duty in the grade of 
general is increased by one. 
(3) NAVY VICE ADMIRALS.—The number of officers of the Navy 
authorized to be serving on active duty in a grade above rear 
admiral is increased by three. None of the additional officers in 
grades above rear admiral by reason of this paragraph may be 
in the grade of admiral. 
(4) MARINE CORPS GENERAL OFFICERS.—The number of officers 
of the Marine Corps authorized to be serving on active duty in 
grades above major general is increased by one, plus an addi-
tional one during any period of that fiscal year that an officer of 
the Marine (Dorps is serving as the (Dommander-in-Chief of the 
United States (Dentral (Command. An additional officer in a 
grade above major general by reason of this paragraph may not 
be in the grade of general, unless a Marine CJorps officer is 
serving as the (;)ommander-in-Chief of the United States Central 
(Dommand, in which case one of the additional officers au-
thorized by this paragraph may serve in the grade of general. 
SEC. 516. GRADE OF RETIRED REGULAR MEMBERS RECALLED TO ACTIVE 
DUTY 
Section 688 of title 10, United States Code, is amended by adding 
at the end thereof the following new subsection: 
"(dXD Except as provided in pareigraph (2), a retired member 
ordered to active duty under this section shall be ordered to active 
duty in his retired grade. 
"(2) A retired member ordered to active duty under this section 
whose retired grade is above the grade of major general or rear 
\ admiral shall be ordered to active duty in the highest permanent 
\ grade held by such member while serving on active duty.". 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. (331 
PART C—RESERVE MIUTARY PERSONNEL 
SEC. 521. EXTENSION OF CERTAIN RESERVE OFFICER MANAGEMENT 
PROGRAMS 
(a) GRADE DETERMINATION FOR RESERVE MEDICAL OFFICERS.— 
Sections 3359(b) and 8359(b) of title 10, United States Code, are 
amended by striking out "September 30, 1985" and inserting in lieu 
thereof "September 30, 1987'^ 
(b) PROMOTION OF CERTAIN RESERVE OFFICERS SERVING ON ACTIVE 
DUTY.—Sections 3380(d) and 8380(d) of such title are amended by 
lO use 3380, 
striking out "September 30, 1985" and inserting in lieu thereof 
8380. 
"September 30,1987" 
(c) YEARS OF SERVICE FOR MANDATORY TRANSFER TO THE RETIRED 
lO use 3360 
RESERVE.—Section 1016(d) of the Department of Defense Authoriza- 
**°^-
tion Act, 1984 (Public Law 98-94; 97 Stat. 668), is amended by 
striking out "September 30, 1985" and inserting in lieu thereof 
"September 30,1987" 
SEC. 522. RETENTION UNTIL AGE 60 OF RESERVE CIVILIAN TECHNICIANS 
(a) ARMY.—(1) Section 3848(c) of title 10, United States Code, 
relating to reserve component officers of the Army who may be 
removed from an active status after completing 28 years of service, 
is amended to read as follows: 
"(c) Notwithstanding subsections (a) and (b), the Secretary of the 
Army may authorize the retention in an active status until age 60 of 
an officer who would otherwise be removed from an active status 
under this section who— 
"(1) is an officer of the Army National Guard of the United 
States assigned to a headquarters or headquarters detachment 
of a State or territory, the Commonwealth of Puerto Rico, the 
Canal Zone, or the District of Columbia; or 
"(2) is employed— 
"(A) as a technician under section 709 of title 32 in a 
32 use 709. 
position for which membership in the National Guard is 
required as a condition of employment; or 
"(B) £is a technician of the Army Reserve in a position for 
which membership in the Army Reserve is required as a 
condition of employment.". 
(2) Section 3851(c) of such title, relating to reserve component 
98 Stat. 2522. 
officers of the Army who may be removed from an active status 
1^ USe 3851. 
after completing 30 years of service, is amended to read as follows: 
"(c) Notwithstanding subsections (a) and (b), the Secretary of the 
Army may authorize the retention in an active status until age 60 of 
an officer who would otherwise be removed from an active status 
under this section who— 
"(1) is an officer of the Army National Guard of the United 
States assigned to a headquarters or headquarters detachment 
of a State or territory, the Commonwealth of Puerto Rico, the 
Canal Zone, or the District of Columbia; or 
"(2) is employed— 
"(A) as a technician under section 709 of title 32 in a 
32 USe 709. 
position for which membership in the National Guard is 
required as a condition of employment; or 
"(B) as a technician of the Army Reserve in a position for 
which membership in the Army Reserve is required as a 
condition of employment." 
99 STAT. 632 
PUBLIC LAW 99-145—NOV. 8, 1985 
(b) AIR FORCE.—(1) Section 8848(c) of title 10, United States Code, 
relating to reserve component officers of the Air Force who may be 
removed from an active status after completing 28 years of service, 
is amended to read as follows: 
"(c) Notwithstanding subsections (a) and (b), the Secretary of the 
Air Force may authorize the retention in an active status until age 
60 of an officer who would otherwise be removed from an active 
status under this section who— 
32 use 709. 
"(1) is employed as a technician under section 709 of title 32 in 
a position for which membership in the National Guard is 
required as a condition of employment; or 
"(2) is employed as a technician of the Air Force Reserve in a 
position for which membership in the Air Force Reserve is 
required £is a condition of employment.". 
10 use 8851. 
(2) Section 8851(c) of such title, relating to reserve component 
officers of the Air Force Reserve who may be removed from an 
active status after completing 30 years of service, is amended to read 
as follows: 
"(c) Notwithstanding subsections (a) and (b), the Secretary of the 
Air Force may authorize the retention in an active status until age 
60 of an officer who would otherwise be removed from an active 
status under this section who— 
32 use 709. 
"(1) is employed as a technician under section 709 of title 32 in 
a position for which membership in the National Guard is 
required as a condition of employment; or 
"(2) is employed as a technician of the Air Force Reserve in a 
position for which membership in the Air Force Reserve is 
required as a condition of employment.". 
SEC. 523. AUTHORITY TO RETAIN IN ACTIVE STATUS UNTIL AGE 62 UP TO 
10 ARMY RESERVE MAJOR GENERALS 
Section 3852 of title 10, United States Code, relating to mandatory 
retirement or discharge of reserve major generals, is amended— 
(1) by inserting "(a)" at the beginning of the text of the 
section; and 
(2) by adding at the end thereof the following new subsection: 
"(b) Notwithstanding subsection (a), an officer in the reserve grade 
of major general who would otherwise be removed from an active 
status under this section may, in the discretion of the Secretary of 
the Army, be retained in an active status, but not later than the 
date on which he becomes 62 years of age. Not more than 10 officers 
may be retained under this subsection at any one time.". 
SEC. 524. REQUIREMENT OF MUSTER TEST OF ARMY INDIVIDUAL READY 
RESERVE 
(a) REQUIREMENT OF MUSTER TEST.—The Secretary of Defense 
shall conduct a test of the ability of the Army to muster members of 
the Individual Ready Reserve of the Army in time of war or national 
emergency. The test— 
(1) shall be national in scope; and 
(2) shall be conducted through voluntary calls to active duty. 
(b) REPORT.—Not later than February 1, 1986, the Secretary of 
Defense shall submit to the Committees on Armed Services of the 
Senate and House of Representatives a report on the muster test. 
The report shall include the findings of the Secretary concerning— 
(1) the availability and fitness for duty of members of the 
Army Individual Ready Reserve; and 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 633 
(2) the adequacy of current call-up procedures. 
PART D—MISCELLANEOUS 
SEC. 53L APPOINTMENTS OF WARRANT OFFICERS 
(a) REGULAR WARRANT OFFICERS.—Section 555(b) of title 10, 
United States Code, is amended to read as follows: 
"(b) Permanent appointments of regular warrant officers, W-1, 
shall be made by warrant by the Secretary concerned. Permanent 
appointments of regular chief warrant officers shall be made by 
commission by the President.". 
(b) RESERVE WARRANT OFFICERS.—Section 597(b) of such title is 
lo use 597. 
amended to read as follows: 
"(b) Appointments made in the permanent reserve grade of war-
rant officer, W-1, shall be made by warrant by the Secretary 
concerned. Appointments made in a permanent reserve grade of 
chief warrant officer shall be made by commission by the Secretary 
concerned.". 
(c) TRANSITION.—(1) The amendments made by subsections (a) and 
lo use 555 note, 
(b) apply to any appointment of a warrant officer or chief warrant 
officer on or after the effective date of this section. 
(2) An officer who on the effective date of this section is serving in 
a chief warrant officer grade under an appointment by warrant may 
be appointed in that grade by commission under section 555(b) or 
597(b) of title 10, United States Code, as appropriate. The date of 
rank of an officer who receives an appointment under this para-
graph is the date of rank for the officer's appointment by warrant to 
that grade. 
(d) EFFECTIVE DATE.—This section takes effect six months after 
10 USC 555 note. 
the date of the enactment of this Act. 
SEC. 532. PRISONER-OF-WAR MEDAL 
(a) AUTHORITY TO ISSUE PRISONER-OF-WAR MEDAL.—(1) Chapter 57 
of title 10, United States Code, is amended by adding at the end 
thereof the following new section: 
"§ 1128. Prisoner-of-war medal: issue 
10 USC 1128. 
"(a) The Secretary concerned shall issue a prisoner-of-war medal 
to any person who, while serving in any capacity with the armed 
forces, was taken prisoner and held captive— 
"(1) while engaged in an action against an enemy of the 
United States; 
"(2) while engaged in military operations involving conflict 
with an opposing foreign force; or 
"(3) while serving with friendly forces engaged in an armed 
conflict against an opposing armed force in which the United 
States is not a belligerent party. 
"(b) The prisoner-of-war medal shall be of appropriate design, with 
ribbons and appurtenances. 
"(c) In prescribing regulations establishing the order of prece-
dence of awards and decorations authorized to be displayed on the 
uniforms of members of the armed forces, the Secretary concerned 
shall accord the prisoner-of-war medal a position of precedence, in 
relation to other awards and decorations authorized to be 
displayed— 
"(1) immediately following decorations awarded for individual 
heroism, meritorious achievement, or meritorious service, and 
99 STAT. 634 
PUBLIC LAW 99-145—NOV. 8, 1985 
"(2) before any other service medal, campaign medal, or 
service ribbon authorized to be displayed. 
"(d) Not more than one prisoner-of-war medal may be issued to a 
person. However, for each succeeding service that would otherwise 
justify the issuance of such a medal, the Secretary concerned may 
issue a suitable device to be worn as the Secretary determines. 
"(e) For a person to be eligible for issuance of a prisoner-of-war 
medal, the person's conduct must have been honorable for the 
period of captivity which serves as the basis for the issuance. 
"(f) If a person dies before the issuance of a prisoner-of-war medal 
to which he is entitled, the medal may be issued to the person's 
representative, as designated by the Secretary concerned. 
"(g) Under regulations to be prescribed by the Secretary con-
cerned, a prisoner-of-war medal that is lost, destroyed, or rendered 
unfit for use without fault or neglect on the part of the person to 
whom it was issued may be replaced without charge. 
"(h) The Secretary of Defense shall ensure that regulations pre-
scribed by the Secretaries of the military departments under this 
section are uniform so far as practicable.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following new item: 
"1128. Prisoner-of-war medal: issue.". 
10 use 1128 
(b) EFFECTIVE DATE.—Section 1128 of title 10, United States Code, 
",ote. 
as added by subsection (a), applies with respect to any person taken 
Ante, p. 633. 
prisoner and held captive after April 5,1917. 
SEC. 533. CLARIFICATION OF PRECEDENCE OF THE AWARD OF THE 
PURPLE HEART 
98 Stat. 2532. 
Section 1127 of title 10, United States Code, is amended by strik-
ing out "the lowest position accorded any award or decoration for 
valor" and inserting in lieu thereof "the bronze star". 
SEC. 534. ESPIONAGE UNDER THE UCMJ 
(a) NEW PUNITIVE ARTICLE.—Chapter 47 of title 10, United States 
Code (the Uniform Code of Military Justice), is amended by insert-
ing after section 906 (article 106) the following new section 
(article): 
Penalties. 
"§ 906a. Art. 106a. Espionage 
"(a)(1) Any person subject to this chapter who, with intent or 
reason to believe that it is to be used to the injury of the United 
States or to the advantage of a foreign nation, communicates, 
delivers, or transmits, or attempts to communicate, deliver, or 
transmit, to any entity described in paragraph (2), either directly or 
indirectly, anything described in paragraph (3) shall be punished as 
a court-martial may direct, except that if the accused is found guilty 
of an offense that directly concerns (A) nuclear weaponry, military 
spacecraft or satellites, early warning systems, or other means of 
defense or retaliation against large scale attack, (B) war plans, (C) 
communications intelligence or cryptographic information, or (D) 
any other major weapons system or major element of defense strat-
egy, the accused shall be punished by death or such other punish-
ment as a court-martial may direct. 
"(2) An entity referred to in paragraph (1) is— 
"(A) a foreign government; 
PUBLIC LAW 99-145-NOV. 8, 1985 
99 STAT. 635 
"(B) a faction or party or military or naval force within a 
foreign country, whether recognized or unrecognized by the 
United States; or 
"(C) a representative, officer, agent, employee, subject, or 
citizen of such a government, faction, party, or force. 
"(3) A thing referred to in paragraph (1) is a document, writing, 
code book, signal book, sketch, photograph, photographic negative, 
blueprint, plan, map, model, note, instrument, appliance, or 
information relating to the national defense. 
"(b)(1) No person may be sentenced by court-martial to suffer 
death for an offense under this section (article) unless— 
"(A) the members of the court-martial unanimously find at 
least one of the aggravating factors set out in subsection (c); and 
"(B) the members unanimously determine that any extenuat-
ing or mitigating circumstances are substantially outweighed by 
any aggravating circumstances, including the aggravating fac-
tors set out in subsection (c). 
"(2) Findings under this subsection may be based on— 
"(A) evidence introduced on the issue of guilt or innocence; 
"(B) evidence introduced during the sentencing proceeding; or 
"(C) all such evidence. 
"(3) The accused shall be given broad latitude to present matters 
in extenuation and mitigation. 
"(c) A sentence of death may be adjudged by a court-martial for an 
offense under this section (article) only if the members unanimously 
find, beyond a reasonable doubt, one or more of the following 
aggravating factors: 
"(1) The accused has been convicted of another offense involv-
ing espionage or treason for which either a sentence of death or 
imprisonment for life was authorized by statute. 
"(2) In the commission of the offense, the accused knowingly 
Defense and 
created a grave risk of substantial damage to the national 
national 
security. 
^^""''^y-
"(3) In the commission of the offense, the accused knowingly 
created a grave risk of death to another person. 
"(4) Any other factor that may be prescribed by the President 
by regulations under section 836 of this title (article 36).". 
lo use 836. 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of subchapter X of such chapter is amended by inserting after the 
item relating to section 906 (article 106) the following new item: 
"906a. Art. 106a. Espionage." 
TITLE VI—COMPENSATION AND OTHER 
PERSONNEL BENEFITS 
PART A—BASIC PAY AND ALLOWANCES 
SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1986 
37 USC 1009 
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—Any adjustment re- 
"°*^ 
quired by section 1009 of title 37, United States Code, in elements of 
the compensation of members of the uniformed services to become 
effective during fiscal year 1986 shall not be made. 
(b) THREE PERCENT PAY RAISE.—The rates of basic pay, basic 
allowance for subsistence, and basic allowance for quarters of mem-
99 STAT. 636 
PUBLIC LAW 99-145—NOV. 8, 1985 
bers of the uniformed services are increased by 3 percent effective 
on October 1,1985. 
SEC. 602. ADJUSTMENTS IN VARIABLE HOUSING ALLOWANCE PROGRAM 
(a) VHA F
O
R CERTAIN MEMBERS PAYING CHILD SUPPORT.—Subsec-
98 Stat. 2534. 
tion (a) of section 403a of title 37, United States Code, is amended by 
adding at the end thereof the following new paragraph: 
"(4) In the case of a member with dependents— 
"(A) who is assigned to duty inside the United States; 
"(B) who is authorized to receive the basic allowance for 
quarters at the rate established for a member with dependents 
solely by reason of the payment of child support by the member; 
and 
"(C) who is not assigned to a housing facility under the 
jurisdiction of a uniformed service, 
the member may be paid a variable housing allowance at the rate 
applicable to a member without dependents serving in the same 
grade and at the same location.". 
(b) LIMITATIONS ON VHA.—Subsection (b) of such section is 
amended— 
(1) by striking out "is not entitled to" in the matter preceding 
paragraph (1) and inserting in lieu thereof "may not be paid"; 
and 
(2) by striking out paragraph (2) and inserting in lieu thereof 
the following: 
"(2) in the case of a member with dependents who is 
authorized the basic allowance for quarters at the rate estab-
lished for a member with dependents solely by reason of the 
payment of child support by the member, i
f
— 
"(A) the member is assigned to a housing facility under 
the jurisdiction of a uniformed service; or 
"(B) the member (i) is assigned to duty outside the United 
States or in Alaska or Hawaii, and (ii) is authorized a 
98 Stat. 2536. 
Station housing allowance under section 405 of this title; 
37 use 405. 
or". 
(c) CLARIFICATION OF AUTHORITY TO PAY VHA AT WITH-DEPEND-
ENTS RATE; ELIMINATION OF EXCESS HOUSING COST PAYMENTS.—(1) 
Subsection (c) of such section is amended by inserting "and with the 
same dependency status" in paragraph (1) after "in the same pay 
grade" both places it appears and in paragraph (4) after "in the 
same pay grade" both places it appears. 
(2) Such subsection is further amended by adding at the end 
thereof the following new paragraph: 
"(6)(A) The monthly variable housing allowance that would other-
wise be paid to a member under this section shall be reduced by an 
amount equal to one-half of the amount (if any) by which— 
"(i) the total monthly housing allowance prescribed for mem-
bers of the same grade as such member who are assigned to 
duty in the same area as such member (or in the same area in 
which the dependents of the member reside, as appropriate), 
exceeds 
"(ii) the monthly housing costs of the member in the area in 
which the member is assigned to duty (or in the area in which 
the dependents of the member reside, as appropriate). 
"(B) In subparagraph (A), 'total monthly housing allowance' 
means, in the case of any member, the sum of— 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 637 
"(i) the monthly basic allowance for quarters to which the 
member is entitled; and 
"(ii) the monthly variable housing allowance prescribed for 
the same grade as such member for the area in which the 
member is assigned to duty (or in the area in which the depend-
ents of the member reside, as appropriate).". 
(d) REQUIRED REGULATIONS.—Subsection (e) of such section is 
37 use 403a. 
amended by— 
(1) inserting "(1)" before "The President"; and 
(2) adding at the end thereof the following new paragraph: 
"(2) Any regpulations prescribed under paragraph (1) may not 
allow— 
"(A) an increase in the variable housing allowance rate for a 
pay grade in a survey area solely to prevent the variable 
housing allowance rate for a lower pay grade in the survey area 
from exceeding such rate; or 
"(B) a failure to lower the variable housing allowance rate for 
a pay grade in a survey area in accordance with a decrease in 
housing costs for such pay grade in such area reported on the 
variable housing allowance survey. 
"(3) Paragraph (2) shall not apply to regulations prescribed with 
respect to any pay grade in a survey area for which available data 
describe fewer than 50 persons in the pay grade.". 
(e) SAVINGS PROVISION.^—A member described in paragraph (4) of 
37 use 403a 
section 403a(a) of title 37, United States Oxie, as added by subsection 
note. 
(a), who on September 30, 1985, is receiving variable housing allow- 
'^"^^' P ^^" 
ance at the rate applicable to a member with dependents shall 
continue to be entitled to variable housing allowance at the appro-
priate rate applicable to a member with dependents until the 
member departs his duty station as a result of a permanent change 
of station. 
(f) EFFECTIVE DATE.—(1) The amendments made by subsections (a), 
37 use 403a 
(b), and (d) shall take effect on October 1,1985. 
note. 
(2) The amendments made by subsection (cXD shall apply as if 
included in the enactment of section 403a of title 37, United States 
Code, by section 602(d) of the Department of Defense Authorization 
98 Stat. 2534. 
Act, 1985 (Public Law 98-525). 
(3) The amendment made by subsection (cX2) shall take effect on 
the first day of the first month beginning 90 days or more after the 
date of the enactment of this Act. 
SEC. 603. PAYMENT OF VARIABLE HOUSING ALLOWANCE IN ALASKA AND 
HAWAII 
(a) REPEAL OF AUTHORITY FOR PAYMENT OF STATION HOUSING 
ALLOWANCE IN ALASKA AND HAWAII DURING FISCAL YEAR 1985.— 
Section 8108 of the Department of Defense Appropriations Act, 1985 
(as contained in section 101(h) of PubUc Law 98-473 (98 Stat. 1943)), 
is repealed. 
0>) CONFORBdING AND TECHNICAL AMENDMENTS TO V H A T R A N S I - 
37 USC 403a 
TION PROVISION.—Paragraph (2) of section 602(f) of the Department 
note. 
of Defense Authorization Act, 1985 (Public Law 98-525; 98 Stat. 
2537), is amended to read as follows: 
"(2)(A) A member shall be entitled to receive a station housing 
allowance under section 405 of title 37, United States Code, as if the 
98 Stat. 2536. 
amendments made by subsection (e) had not been enacted, if the 
member, on the date of the enactment of the Department of Defense 
Authorization Act, 1986— 
Ante, p. 583. 
99 STAT. 638 
PUBLIC LAW 99-145—NOV. 8, 1985 
"(i) is assigned to a permanent duty station in Alaska or 
Hawaii; and 
"(ii) is entitled to payment of a temporary lodging allowance 
98 Stat. 2536. 
or a station housing allowance under section 405 of such title. 
37 use 405. 
"(B) A member who is entitled to a station housing allowance by 
reason of subparagraph (A) shall only be entitled to such allowance 
until the earlier o
f
— 
"(i) the date on which the member departs that station as a 
result of a permanent change of duty station; or 
"(ii) the expiration of the four-year period beginning on the 
date of the enactment of the Department of Defense Authoriza-
tion Act, 1986. 
"(C) Any member who is entitled to a station housing allowance 
by reason of subparagraph (A) shall not be entitled to a variable 
housing allowance under paragraph (1) or (2) of section 403a of such 
98 Stat. 2534. 
title (as added by subsection (d)).". 
37 u s e 403a. 
SEC. 604. AUTHORITY TO PAY BAQ AND VHA IN ADVANCE 
(a) BASIC ALLOWANCE FOR QUARTERS.—Section 403(a) of title 37, 
98 Stat. 2534. 
United States Code, is amended by adding at the end thereof the 
following new sentence: "The allowance authorized by this section 
may be paid in advance.". 
(b) VARIABLE HOUSING ALLOWANCE.—Section 403a(a)(l) of such 
title is amended by adding at the end thereof the following new 
sentence: "The allowance authorized by this section may be paid in 
advance.". 
37 use 403 note. 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
take effect on October 1, 1985. 
SEC. 605. ELIGIBILITY FOR BASIC ALLOWANCE FOR QUARTERS 
(a) MEMBERS WITHOUT DEPENDENTS ASSIGNED TO FIELD DUTY 
O
R SEA DUTY.—Section 403(c) of title 37, United States Code, is 
amended— 
(1) by striking out "is not entitled to a basic allowance for 
quarters while he is on field duty" in paragraph (1) and insert-
ing in lieu thereof "who makes a permanent change of station 
for assignment to a unit conducting field operations is not 
entitled to a basic allowance for quarters while on that initial 
field duty"; 
(2) by striking out "and who is on sea duty" in the second 
sentence of paragraph (2) and all that follows and inserting in 
lieu thereof "who is assigned to sea duty under a permanent 
change of station is not entitled to a basic allowance for quar-
ters if the unit to which the member is ordered is deployed and 
the permanent station of the unit is different than the perma-
nent station from which the member is reporting."; and 
(3) by striking out paragraph (3). 
37 use 403 note. 
(b) EFFECTIVE DATES.—(1) The amendments made by paragraphs 
(1) and (2) of subsection (a) shall take effect on October 1, 1985. 
(2) The amendment made by paragraph (3) of subsection (a) shall 
take effect on January 1, 1986. 
SEC. 606. REIMBURSEMENT FOR ACCOMMODATIONS IN PLACE OF 
QUARTERS 
(a) LIMITATION ON AMOUNT AVAILABLE FOR REIMBURSEMENT FOR 
98 Stat. 2537. 
FiscAL YEAR 1986.—Section 7572(b)(3) of title 10, United States Code, 
is amended— 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 639 
(1) by striking out "and" after "fiscal year 1984,"; and 
(2) by inserting ", and $1,421,000 for fiscal year 1986" after 
"fiscal year 1985". 
(b) EXTENSION OF AUTHORITY.—Section 3 of Public Law 96-357 (10 
U.S.C. 7572 note) is amended by striking out "September 30, 1985" 
98 Stat. 2537. 
and inserting in lieu thereof "September 30, 1986". 
SEC. 607. INCREASE IN FAMILY SEPARATION ALLOWANCE 
(a) MONTHLY ALLOWANCE.—Section 427(b) of title 37, United 
States Code, is amended by striking out "$30" and inserting in lieu 
thereof "$60". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
37 USC 427 note, 
shall take effect on October 1, 1985, and shall apply only to family 
separation allowances payable for months beginning on or after that 
date. 
PART B—TRAVEL AND TRANSPORTATION 
SEC. 611. INCREASE IN DISLOCATION ALLOWANCE 
(a) AMOUNT PAYABLE.—Section 407 of title 37, United States Code, 
is amended by striking out "one month" and inserting in lieu 
thereof "two months". 
(b) EFFECTIVE DATE.—The amendment made by this section shall 
37 USC 407 note, 
apply to moves begun after September 30,1985. 
SEC. 612. REVISION OF TRAVEL AND TRANSPORTATION ALLOWANCES 
(a) IN GENERAL.—Subsection (d) of section 404 of title 37, United 
States Code, is amended— 
(1) by striking out the first sentence and inserting in lieu 
thereof the following: "(1) The travel and transportation allow-
ances authorized for each kind of travel may not be more than 
one of the following: 
"(A) Transportation in kind, reimbursement therefor, or, 
under regulations prescribed by the Secretaries concerned, 
when travel by privately-owned conveyance is authorized or 
approved as more advantageous to the Government, a monetary 
allowance in place of the cost of transportation, at the rates 
provided in section 5704 of title 5, based on distances established 
over the shortest usually traveled route, under mileage tables 
prepared under the direction of the Secretary of the Army. 
"(B) Transportation in kind, reimbursement therefor, or a 
monetary allowance as provided in subparagraph (A) of this 
paragraph, plus a per diem in place of subsistence in an amount 
not more than $50 determined by the Secretaries concerned to 
be sufficient to meet normal and necessary expenses in the area 
to which travel is to be performed. 
"(C) A mileage allowance at a rate per mile prescribed by the 
Secretaries concerned and based on distances established under 
clause (1) of this subsection."; and 
(2) by designating the second sentence as paragraph (2) and by 
striking out "clause (2)" in such sentence and inserting in lieu 
thereof "paragraph dXB)". 
(b) 
TRANSPORTATION 
ALLOWANCE 
FOR 
DEPENDENTS.—Section 
406(aXl) of such title is amended by striking out "for his depend- 
37 USC 406. 
ents" and all that follows through "to be prescribed" and inserting 
in lieu thereof ", reimbursement therefor, or a monetary allowance 
in place of the cost of transportation, plus a per diem, for the 
99 STAT. 640 
PUBLIC LAW 99-145—NOV. 8, 1985 
member's dependents at rates prescribed by the Secretaries 
concerned". 
37 use 404 note. 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
apply to travel performed after September 30, 1985. 
SEC. 613. TEMPORARY LODGING EXPENSES 
(a) ENTITLEMENT.—Section 404a(a) of title 37, United States Code, 
is amended— 
(1) in the first sentence, by striking out "may" and inserting 
in lieu thereof "shall"; 
(2) in the second sentence, by striking out "may" the first 
place it appears and inserting in lieu thereof "are to"; and 
(3) in the third sentence, by striking out "may" the first place 
it appears and inserting in lieu thereof "are to". 
37 use 404a 
(h) EFFECTIVE DATE.—The amendments made by subsection (a) 
note. 
shall take effect on October 1,1985. 
SEC. 
6
1
4
. 
ALLOWANCES 
FOR 
TRANSPORTATION 
OF 
BAGGAGE 
AND 
HOUSE-
HOLD 
EFFECTS 
(a) 
AUTHORITY TO 
PAY 
FOR CERTAIN 
LABOR 
PROVIDED BY 
MEMBER.—Section 406(k) of title 37, United States Code, is 
amended— 
(1) by inserting "(1)" after "(k)"; 
(2) in the first sentence, by inserting "or in which a member 
provides all or a part of the labor in connection with the 
transportation of the baggage and household effects of the 
member (including packing, crating, and loading)" after "rental 
vehicle"; and 
(3) by adding at the end thereof the following new paragraph: 
"(2) The Secretary concerned may prescribe in any regulations 
authorizing the payment of a monetary allowance to a member who 
participates in a program in which the member provides all or a 
part of the labor in connection with the transportation of the 
baggage and household effects of the member— 
"(A) the extent to which payment to the member will be made 
for such labor, and 
"(B) the manner in which liability will be allocated among the 
member, the United States, and the common carriers involved 
in the event of loss of or damage to any baggage or household 
effects packed, crated, or loaded by the member.". 
37 use 406 note. 
Q}) TERMINATION OF AUTHORITY.—The amendments made by 
subsection (a) shall expire on September 30,1989. 
37 u s e 406 note. 
(c) PROHIBITION ON RETROACTIVE PAYMENTS.—No allowance m a y 
be paid to any member of a uniformed service by virtue of the 
amendments made by subsection (a) in connection with the 
transportation of the baggage and household effects provided 
the member before the date of the enactment of this Act. 
37 use 406 note. 
(d) REPORT REQUIREMENT.—The Secretary of Defense shall submit 
a report to the Congress not later than September 30, 1988, regard-
ing the operation of any program carried out by the military 
departments under which payment of a monetary allowance is made 
to a member who provides all or a part of the labor in connection 
with the transportation of the baggage and household effects of the 
member and shall include in such report such recommendations for 
legislative action the Secretary considers appropriate. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 641 
SEC. 615. TRAVEL ALLOWANCE FOR TRAVEL PERFORMED IN CONNECTION 
WITH CERTAIN LEAVE 
(a) IN GENERAL.—Section 411b(a)(l) of title 37, United States Code, 
is amended— 
(1) by striking out "if he is a member without dependents,"; 
(2) by striking out ", if either" and all that follows and 
inserting in lieu thereof a period; and 
(3) by adding at the end thereof the following new sentence: 
"Such allowances may be paid for the member and for the 
dependents of the member who are authorized to, and do, 
accompany him at his duty stations.". 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
37 USC 4llb 
shall apply with respect to orders to change a permanent station 
note. 
that are effective after September 30,1985. 
SEC. 616. TRAVEL DURING SHIP OVERHAUL 
(a) IN GENERAL.—Section 406b of title 37, United States Code, is 
amended— 
(1) by inserting "(a)" before "Under"; 
(2) by striking out ", ninety-first, and one hundred and fifty-
first calendar day" and inserting in lieu thereof "calendar day, 
and every sixtieth calendar day after the thirty-first calendar 
day"; and 
(3) by adding at the end thereof the following new subsections: 
"(b) Transportation in kind, reimbursement for personally pro-
cured transportation, or a monetary allowance in place of the cost of 
transportation as provided in section 404(dXl) of this title may be 
37 USC 404. 
provided, in lieu of the member's entitlement to transportation, for 
the member's dependents from the location that was the home port 
of the ship before commencement of overhaul or inactivation to the 
port of overhaul or inactivation. The total reimbursement for 
transportation for the member's dependents may not exceed the cost 
of Government-procured commercial roundtrip travel. 
"(c) A member of the uniformed services on permanent duty 
aboard a ship which undergoes a change of home port to the 
overhaul or inactivation port and the member's dependents may be 
provided the transportation allowances prescribed in subsections (a) 
and (b) of this section in lieu of the transportation authorized by 
section 406 of this title and section 2634 of title 10. 
37 USC 406. 
"(d) Section 420 of this title does not apply with respect to 
10 USC 2634. 
transportation or allowances provided under this section.". 
^ 
" 
(b) EFFECTIVE DATE.—The travel allowances authorized by the 
37 USC 406b 
amendments made by this section are payable only for travel that 
'^ote. 
commences after September 30, 1985, but may be paid for members 
assigned to vessels being overhauled or inactivated away from home 
port on the date of the enactment of this Act. 
(c) CLERICAL AMENDMENTS.—(1) The heading for such section is 
amended by striking out the last four words. 
(2) The item relating to such section in the table of sections at the 
beginning of chapter 7 of such title is amended by striking out the 
last four words. 
SEC. 617. DEFINITION OF RESIDENCE OF A STUDENT DEPENDENT 
(a) IN GENERAL.—Section 406 of title 37, United States Code, is 
amended by adding at the end thereof the following new subsection: 
"(1) For the purposes of this section, the residence of a dependent 
of a member who is a student not living with the member while at 
99 STAT. 642 
PUBLIC LAW 99-145—NOV. 8, 1985 
school shall be considered to be the permanent duty station of the 
member or the designated residence of dependents of the member if 
the member's dependents are not authorized to reside with the 
member.". 
37 use 406 note. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to orders to change a permanent station 
that are effective after September 30, 1985. 
SEC. 618. EXTENSION OF TEST PROGRAM FOR FLAT RATE PER DIEM 
SYSTEM 
(a) AUTHORITY FOR TEST PROGRAM.—The Secretary concerned may 
carry out a program to test a flat rate per diem system for travel 
allowances for travel performed by members of the Armed Forces 
while on temporary duty. 
(b) AMOUNT OF FLAT RATE.—Per diem allowances paid under such 
a test program shall be in an amount determined by the Secretary 
concerned to be sufficient to meet normal and necessary expenses in 
the area in which travel is performed, but may not exceed $75 for 
each day a member is in travel status within the continental United 
States. 
(c) REGULATIONS.—The test program under this section shall 
be carried out under regulations prescribed by the Secretary 
concerned. 
(d) DEFINITION OF SECRETARY CONCERNED.—For the purposes of 
this section, the term "Secretary concerned" means— 
(1) the Secretary of each military department with respect to 
matters concerning the respective military departments; and 
(2) the Secretary of Defense with respect to matters concern-
ing the defense agencies. 
(e) DURATION OF PROGRAM.—The test program under this section 
shall be carried out during the period beginning on October 1, 1985, 
and ending on September 30, 1986. 
SEC. 619. TRAVEL A
N
D TRANSPORTATION ALLOWANCES FOR TRAVEL 
WITHIN THE ADMINISTRATIVE LIMITS OF A MEMBERS D
U
T
Y 
STATION 
(a) AUTHORITY TO PAY PARKING FEES.—The second sentence of 
section 408 of title 37, United States Code, is amended by inserting 
"plus parking fees" after "fixed rate a mile". 
37 use 408 note. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to parking fees incurred after Septem-
ber 30, 1985. 
SEC. 620. TRANSPORTATION ALLOWANCES FOR SURVIVORS OF DECEASED 
MEMBER TO ATTEND BURIAL CEREMONIES OF DECEASED 
MEMBER 
(a) AUTHORITY TO PROVIDE ROUND-TRIP TRAVEL ALLOWANCE.—(1) 
Chapter 7 of title 37, United States Code, is amended by inserting 
after section 41 le the following new section: 
37USC4llf. 
"§411f. Travel and transportation allowances: transportation for 
survivors of deceased member to attend the member's 
burial ceremonies 
"(a) Under uniform regulations prescribed by the Secretaries 
concerned, round trip travel and transportation allowances may be 
provided the dependents of a member who dies while on active duty 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 643 
for a period of 30 days or more in order to attend the burial 
ceremonies of the deceased member. 
"(b)(1) Except as provided in paragraph (2), allowances under this 
section are limited to travel and transportation to a location in the 
United States, Puerto Rico, and the possessions of the United States 
and may not exceed the rates for 2 days. 
"(2) If a deceased member was ordered or called to active duty 
from a place outside the United States, Puerto Rico, or the posses-
sions of the United States, the allowances authorized under this 
section may be provided to and from such place and may be ex-
tended to accommodate the time necessary for such travel. 
"(c) In this section, the term 'dependents' includes the dependents 
specified in paragraphs (1) and (2) of section 401 of this title. 
37 USC 401. 
However, if no person qualifies under such paragraphs, the parents 
of a member (including stepparent or parent by adoption, or any 
person, including a former stepparent, who has stood in loco 
parentis to the member at any time for a continuous period of at 
least 5 years before the member became 21 years of age) may be paid 
the travel and transportation allowances authorized under this 
section.". 
(2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 41 le the 
following new item: 
"41 If. Travel and transportation allowances: transportation for survivors of de-
ceased member to attend the member's burial ceremonies.". 
(b) EFFECTIVE DATE.—The travel and transportation allowance 
37 USC 41 if 
authorized by the amendments made by this section is payable only 
note, 
for travel that commences after September 30, 1985. 
PART C—BONUSES AND SPECIAL AND INCENTIVE PAYS 
Subpart 1—Active Forces 
SEC. 631. LUMP-SUM PAYMEN*rS OF SELECTIVE REENLISTMENT BONUSES 
(a) SPECIFICATION OF MINIMUM TO BE PAID IN ADVANCE.—Para-
graph (1) of section 308(b) of title 37, United States Code, is amended 
98 Stat. 2540. 
to read as follows: 
"(1) Not less than 75 percent of the amount of a bonus under 
this section shall be paid in a lump sum at the beginning of the 
period for which the bonus is paid, with any remaining amount paid 
in equal annual installments.' . 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
37 USC 308 note. 
shall apply with respect to bonuses paid for reenlistments or exten-
sions of enlistment effective after September 30,1986. 
SEC. 632. SPECIAL PAY FOR NUCLEAR OFFICERS 
(a) CONTINUATION PAY.—(1) Subsection (a) of section 312 of title 37, 
United States Code, is amended— 
(A) by inserting "and" at the end of clause (2); 
(B) by striking out clause (3); 
(C) by redesignating clause (4) as clause (3) and striking out 
"for one period of four years" in such clause and inserting in 
lieu thereof "for a period of three, four, or five years, so long as 
the new period of obligated active service does not extend 
beyond the end of 26 years of commissioned service,"; and 
^ 
(D) in the matter following such clause— 
99 STAT. 644 
PUBLIC LAW 99-145—NOV. 8, 1985 
(i) by striking out "$7,000" and inserting in lieu thereof 
"$12,000"; 
(ii) by striking out "semiannually" and "six-month 
period" in the second sentence and inserting in lieu thereof 
"annually" and "12-month period", respectively; and 
(iii) by striking out "shall become fixed" and all that 
follows through the end of subsection (a) and inserting in 
lieu thereof "shall be paid in equal annual installments 
over the length of the contract, commencing at the expira-
tion of any existing period of obligated active service. The 
Secretary (or his designee) may accept an active service 
agreement under this section not more than one year in 
advance of the end of an officer's existing period of obli-
gated active service under such an agreement. In such a 
case, the amount of the special pay may be paid commenc-
ing with the date of acceptance of the agreement, with the 
number of installments being equal to the number of years 
covered by the contract plus one.". 
(2) Subsection (b) of such section is repealed. 
(3) Subsection (c) of such section is redesignated as subsection (h) 
and is amended by striking out "of four years". 
(4) Subsection (d) of such section is redesignated as subsection (c) 
and is amended— 
(A) by striking out "four years' " in the second sentence; and 
(B) by striking out "at the end of the four-year period" in that 
sentence. 
(5) Such section is further amended by inserting after subsection 
(c) (as so redesignated) the following new subsection (d): 
"(d)(1) An officer who is performing obligated service under an 
agreement under subsection (a) of this section may, if the amount 
that may be paid under such subsection is higher than at the time 
the officer executed such agreement, execute a new agreement 
under that subsection. The period of such an agreement shall be a 
period equal to or exceeding the original period of the officer's 
existing agreement, so long as the period of obligated active service 
under the new agreement does not extend beyond the end of 26 
years of commissioned service. If a new agreement is executed under 
this subsection, the existing active-service agreement shall be can-
celled, effective on the day before an anniversary date of that 
agreement after the date on which the amount that may be paid 
under this section is increased. 
"(2) This subsection shall be carried out under regulations pre-
scribed by the Secretary of the Navy.". 
(6) Subsection (e) of such section is amended by striking out 
"September 30, 1987" and inserting in lieu thereof "September 30, 
1990". 
(b) NUCLEAR-CAREER ACCESSION BONUS.—(1) Subsection (a)(1) of 
37 use 312b. 
section 312b of such title is amended— 
(A) by striking out "of $3,000" and inserting in lieu thereof 
"not to exceed $8,000"; and 
(B) by adding at the end thereof the following new sentence: 
"Upon acceptance of the agreement by the Secretary, the 
amounts payable upon selection for training and upon comple-
tion of training, respectively, as determined under subsection (b) 
of this section, shall become fixed.". 
(2) Subsection (b) of such section is amended to read as follows: 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 645 
"(b) The Secretary of the Navy shall determine annually the total 
amount of the bonus to be paid under this section and of that 
amount the portions that are to be paid— 
"(1) upon selection for officer naval nuclear power training; 
and 
"(2) upon successful completion, as a commissioned officer, of 
training for duty in connection with the supervision, operation, 
and maintenance of naval nuclear propulsion plants.". 
(3) Subsection (d) of such section is amended by striking out 
"September 30, 1987" and inserting in lieu thereof "September 30, 
1990". 
(c) ANNUAL INCENTIVE BONUS.—(1) Subsection (a) of section 312c of 
such title is amended as follows: 
37 USC 3l2c. 
(A) The first sentence is designated as paragraph (1) and 
amended— 
(i) by redesignating clauses (1) through (5) as clauses (A) 
through (E), respectively; 
(ii) by striking out ", but has completed less than twenty-
six years of commissioned service" in clause (C) (as so 
designated); and 
(iii) by striking out "$6,000" and "October 1, 1987" and 
inserting in lieu thereof "$10,000" and "October 1, 1990", 
respectively. 
(B) The second sentence is designated as paragraph (2) and is 
amended by inserting "technically" before "qualified". 
(C) The third sentence is designated as paragraph (3) and is 
amended by striking out "nuclear service year" the second 
place it appears and all that follows in that sentence and 
inserting in lieu thereof "nuclear service year on which he— 
"(A) was not on active duty; 
"(B) was not technically qualified for duty in connection with 
the supervision, operation, and maintenance of naval nuclear 
propulsion plants; 
"(C) was performing obligated service as the result of an 
active-service agreement executed under section 312 of this 
title; or 
Ante, p. 643. 
"(D) was entitled to receive aviation career incentive pay in 
accordance with section 301a while serving in a billet other 
37 USC 30la. 
than a billet that required the officer— 
"(i) be technically qualified for duty in connection with 
the supervision, operation, and maintenance of naval 
nuclear propulsion plants; and 
"(ii) be qualified for the performance of operational flying 
duties.". 
(D) The fourth sentence is repealed. 
(2) Subsection (b) of such section is amended as follows: 
(A) The first sentence is designated as paragraph (1) and 
amended— 
(i) by redesignating clauses (1) through (4) as clauses (A) 
through (D), respectively; and 
(ii) by striking out "$3,500" and "October 1, 1987" and 
inserting in lieu thereof "$4,500" and "October 1, 1990", 
respectively. 
(B) The second sentence is designated as paragraph (2) and is 
amended by inserting "technically" before qualified". 
(C) The third sentence is designated as paragraph (3) and is 
amended by striking out "nuclear service year" and all that 
99 STAT. 646 
PUBLIC LAW 99-145—NOV. 8, 1985 
follows in that sentence and inserting in lieu thereof "nuclear 
service year on which he— 
"(A) was not in an assignment involving the direct super-
vision, operation, or maintenance of naval nuclear propulsion 
plants; 
"(B) was performing obligated service as the result of an 
active-service agreement executed under section 312 of this 
Ante, p. 643. 
title; or 
"(C) was entitled to receive aviation career incentive pay in 
37 use 301a. 
accordance with section 301a while serving in a billet other 
than a billet— 
"(i) involving the direct supervision, operation, or mainte-
nance of naval nuclear propulsion plants; and 
"(ii) that required the officer be qualified for the perform-
ance of operational flying duties.". 
(3) Subsection (e) of such section is amended by striking out 
"October 1, 1987" and inserting in lieu thereof "October 1, 1990". 
37 use 312 note. 
(d) EFFECTIVE DATE.—The amendments made by this section shall 
take effect on October 1, 1985. 
SEC. 633. INCENTIVE PAY FOR SUBMARINE DUTY 
(a) INCREASE IN RATES OF INCENTIVE PAY FOR OFFICERS.—The table 
pertaining to commissioned officers in section 301c(b) of title 37, 
United States Code, is amended to read as follows: 
"COMMISSIONED OFFICERS 
Years of service computed under section 20') 
"Pay grade 
2 
or 
l
e
s
s 
$265 
265 
265 
265 
440 
440 
270 
265 
175 
130 
Over 
2 
$265 
265 
265 
265 
440 
440 
270 
265 
175 
130 
Over 
3 
$265 
265 
265 
265 
440 
440 
270 
265 
175 
130 
Over 
4 
$265 
265 
265 
265 
440 
440 
300 
290 
175 
130 
Over 
fi 
$265 
265 
265 
265 
440 
440 
440 
440 
175 
130 
Overs 
$265 
265 
265 
265 
440 
440 
440 
440 
175 
130 
Over 
10 
$265 
265 
265 
265 
440 
440 
440 
440 
265 
265 
O-IO. 
0-9.. 
0-8... 
0-7.. 
0-6.., 
0-5.. 
0-4.. 
0 - 3 . . 
0-2.. 
O-l .. 
'Pay grade 
Over 
12 
Years of service computed under section 20") 
Over 
14 
Over 
IB 
Over 
18 
Over 
20 
Over 
22 
Over 
2<i 
O-IO 
$265 
0-9 
265 
0-8 
265 
0-7 
265 
0-6 
440 
0-5 
440 
0-4 
440 
0-3 
440 
0-2 
265 
O-l 
265 
$265 
265 
265 
265 
440 
440 
440 
440 
265 
265 
$265 
265 
265 
400 
440 
440 
440 
440 
265 
265 
$265 
265 
265 
395 
440 
440 
440 
440 
265 
265 
$265 
265 
265 
395 
440 
440 
440 
440 
265 
265 
$265 
265 
265 
305 
440 
440 
440 
440 
265 
265 
$265 
265 
265 
265 
440 
440 
440 
440 
265 
265' 
37 use 301c 
(b) EFFECTIVE DATE.—The amendment made by this section shall 
note. 
take effect on October 1, 1985. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 647 
SEC. 634. CAREER SEA PAY 
(a) INCREASE IN RATES FOR OFFICERS.—The tables pertaining to 
warrant officers and commissioned officers in section 305a(b) of title 
37, United States C!ode, are amended to appear as follows: 
98 Stat. 2541. 
"WARRANT OFFICERS 
Years of sea duty 
fay gra e 
^ ^^ 
Over 
Over 
Over 
Over 
Over 
Over 
Over 
Over 
l
e
s
s 
1
2
3
4
5
6
7
8 
W-1 
$130 $135 $140 $150 $170 $175 $200 $250 
$270 
W-2 
150 
150 
150 
150 
170 
260 
265 
265 270 
W-3 
150 
150 
150 
150 
170 
270 
280 
285 290 
W-4 
150 
150 
150 
150 
170 
290 
310 
310 310 
"Pay grade 
W-1 
W-2 
W-3 
W-4 
Over 
9 
$275 
275 
300 
310 
Over 
' 
10 
$280 
280 
310 
320 
Years of sea duty 
Over 
Over 
Over 
11 
12 
14 
$290 
$300 
$300 
290 
310 
330 
310 
330 
350 
330 
350 
370 
Over 
16 
$300 
350 
370 
390 
Over 
18 
$300 
370 
390 
410 
Over 
20 
$300 
390 
410 
410 
"COMMISSIONED OFFICERS 
"Pay grade 
O-l 
0-2 
0-3 
0-4 
0-5 
0-6 
"Pay grade 
0-1 
0-2 
0-3 
0-4 
0-5 
0-6 
Overs 
$150 
150 
150 
185 
225 
225 
Over 
10 
$225 
225 
225 
225 
260 
290 
Over 4 
$160 
160 
160 
190 
225 
230 
Over 
11 
$225 
225 
225 
225 
265 
300 
Years of sea duty 
Over 5 
$185 
185 
185 
200 
225 
230 
Over 6 
Over 7 
Over 8 
$190 
190 
190 
205 
225 
240 
Years of sea duty 
Over 
12 
$240 
240 
240 
240 
265 
310 
$195 
195 
195 
215 
230 
255 
Over 
Over 
14 
16 
$250 
250 
260 
270 
285 
325 
$260 
260 
270 
280 
300 
340 
$205 
205 
205 
215 
245 
265 
Over 
18 
$270 
270 
280 
290 
315 
355 
Over 9 
$215 
215 
215 
220 
250 
280 
Over 
20 
$280 
280 
290 
300 
340 
380" 
(b) EFFECTIVE DATE.—The amendment made by this section shall 
37 use 305a 
take effect on October 1,1985. 
note. 
SEC. 635. INCENTIVE PAY FOR HAZARDOUS DUTY 
(a) HAZARDOUS DUTY INCENTIVE PAY FOR OFFICERS AND FOR CER-
TAIN ADDITIONAL DUTIES.—(1) Subsection (a) of section 301 of title 37, 
United States Code, is amended— 
98 Stat. 2542. 
(A) in clause (1), by striking out "an enlisted crew member" 
and inserting in lieu thereof "a crew member"; and 
99 STAT. 648 
PUBLIC LAW 99-145—NOV. 8, 1985 
(B) by striking out clause (10) and inserting in lieu thereof the 
following: 
"(10) involving (A) the servicing of aircraft or missiles with 
highly toxic fuels or propellants, (B) the testing of aircraft or 
missile systems (or components of such systems) during which 
highly toxic fuels or propellants are used, or (C) the handling of 
chemical munitions (or components of such munitions); or". 
(2) Subsection (b) of such section is amended to read as follows: 
"(b) For the performance of hazardous duty described in clause (1) 
of subsection (a) of this section, a member is entitled to monthly 
incentive pay as follows: 
"Pay Grade 
Monthly Rate 
O-IO 
$110 
0-9 
1
1
0 
0-8 
1
1
0 
0-7 
1
1
0 
0-6 
250 
0-5 
250 
0-4 
225 
0-3 
1
7
5 
0-2 
1
5
0 
0-1 
1
2
5 
W-4 
250 
W-3 
1
7
5 
W-2 
1
5
0 
W-1 
1
2
5 
E-9 
200 
E-8 
200 
E-7 
200 
E-6 
1
7
5 
E-5 
1
5
0 
E-4 
1
2
5 
E-3 
1
1
0 
E-2 
1
1
0 
E-1 
1
1
0
"
. 
(3) Paragraph (1) of subsection (c) of such section is amended to 
read as follows: 
"(1) For the performance of hazardous duty described in clauses (2) 
through (10) of subsection (a) of this section, a member is entitled to 
$110 a month. However, a member performing hazardous duty 
described in clause (3) of that subsection who also performs as an 
essential part of such duty parachute jumping at a high altitude 
with a low opening is entitled to $165 a month.". 
37 use 301 note. 
(b) EFFECTIVE DATE.—The amendments made by this section shall 
take effect on October 1,1985. 
SEC. 636. EXTENSION OF AVIATION OFFICER CONTINUATION PAY 
Effective on October 1, 1985, section 301b of title 37, United States 
98 Stat. 2540, 
Code, is amended by striking out "September 30, 1985" in subsec-
2541. 
tions (e)(2), (e)(3), and (f) and inserting in lieu thereof "September 30, 
1987". 
SEC. 637. CHANGE IN DEFINITION OF ENGINEERING AND SCIENTIFIC 
DUTY 
(a) DEFINITION.—(1) Subsection (a) of section 315 of title 37, United 
States Code, is amended to read as follows: 
"(a) In this section, 'engineering or scientific duty' means service 
performed by an officer— 
"(1) that requires an engineering or science degree; and 
"(2) that requires a skill designated (under regulations pre-
scribed by the Secretary of Defense for the armed forces, by the 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 649 
Secretary of Commerce for the National Oceanic and At-
mospheric Administration, or by the Secretary of Health and 
Human Services for the Public Health Service) as critical and as 
a skill in which there is a critical shortage of officers in the 
uniformed service concerned.". 
(2) The matter preceding clause (1) of section 315(b) of such title is 
37 USC 315. 
amended to read as follows: 
"(b) Under regulations prescribed by the Secretary concerned, an 
officer of a uniformed service who—". 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
37 USC 315 note, 
shall take effect on October 1, 1985. 
SEC. 638. INCENTIVE PAY FOR DUTY SUBJECT TO HOSTILE FIRE 
(a) INCREASE IN INCENTIVE PAY FOR DUTY SUBJECT TO HOSTILE 
FIRE.—The first sentence of section 310 of title 37, United States 
Code, is amended by striking out "at the rate of $65 a month" and 
inserting in lieu thereof "at the lowest rate for hazardous duty 
incentive pay specified in section 301(c)(1) of this title". 
98 Stat. 2542. 
(b) EFFECTIVE DATE.—The amendment made by this section shall 
37 USC 310 note, 
take effect on October 1, 1985. 
SEC. 6.39. REVISION OF SPECIAL PAY FOR DENTAL OFFICERS 
(a) IN GENERAL.—Section 302b of title 37, United States Code, is 
amended to read as follows: 
"§ 302b. Special pay: dental officers of the armed forces 
"(a)(1) An officer who— 
"(A) is an officer of the Dental Corps of the Army or the Navy 
or an officer of the Air Force designated as a dental officer; and 
"(B) is on active duty under a call or order to active duty for a 
period of not less than one year, 
is entitled to special pay in accordance with this subsection. 
"(2) An officer described in paragraph (1) of this subsection who is 
serving in a pay grade below pay grade 0-7 is entitled to variable 
special pay at the following rates: 
"(A) $1,200 per year, if the officer is undergoing dental intern-
ship training or has less than three years of creditable service. 
"(B) $2,000 per year, if the officer has at least three but less 
than six years of creditable service and is not undergoing dental 
internship training. 
"(C) $4,000 per year, if the officer has at least six but less than 
10 years of creditable service. 
"(D) $6,000 per year, if the officer has at least 10 but less than 
14 years of creditable service. 
"(E) $4,000 per year, if the officer has at least 14 but less than 
18 years of creditable service. 
"(F) $3,000 per year, if the officer has 18 or more years of 
creditable service. 
"(3) An officer described in paragraph (1) of this subsection who is 
serving in a pay grade above pay grade 0-6 is entitled to variable 
special pay at the rate of $1,000 per year. 
"(4) Subject to subsection (b) of this section, an officer entitled to 
variable special pay under paragraph (2) or (3) of this subsection is 
entitled to additional special pay for any 12-month period during 
which the officer is not undergoing dental internship or residency 
training. Such additional special pay shall be paid at the following 
rates: 
99 STAT. 650 
PUBLIC LAW 99-145—NOV. 8, 1985 
"(A) $6,000 per year, if the officer has at least three but less 
than 14 years of creditable service. 
"(B) $8,000 per year, if the officer has at least 14 but less than 
18 years of creditable service. 
(C) $10,000 per year, if the officer has 18 or more years of 
creditable service. 
"(5) An officer who is entitled to variable special pay under 
paragraph (2) or (3) of this subsection and who is board certified is 
entitled to additional special pay at the following rates: 
"(A) $2,000 per year, if the officer has less than 12 years of 
creditable service. 
"(B) $3,000 per year, if the officer has at least 12 but less than 
14 years of creditable service. 
(C) $4,000 per year, if the officer has 14 or more years of 
creditable service. 
"(bXD An officer may not be paid additional special pay under 
subsection (aK4) of this section for any 12-month period unless the 
officer first executes a written agreement under which the officer 
agrees to remain on active duty for a period of not less than one year 
beginning on the date the officer accepts the award of such special 
pay. 
Regulations. 
(2) Under regulations prescribed by the Secretary of Defense 
37 use 303a. 
Under section 303a(a) of this title, the Secretary of the military 
department concerned may terminate at any time an officer's 
entitlement to the special pay authorized by subsection (a)(4) of this 
section. If such entitlement is terminated, the officer concerned is 
entitled to be paid such special pay only for the part of the period on 
active duty that the officer served, and the officer may be required 
to refund any amount in excess of that entitlement. 
Regulations. 
"(c) Regulations prescribed by the Secretary of Defense under 
section 303a(a) of this title shall include standards for determining— 
"(1) whether an officer is undergoing internship or residency 
training for purposes of subsections (aX2)(A), (aX2)(B), and (aX4) 
of this section; and 
"(2) whether an officer is board certified for purposes of 
subsection (aX5) of this section. 
"(d) Special pay payable to an officer under paragraphs (2), (3), 
and (5) of subsection (a) of this section shall be paid monthly. Special 
pay payable to an officer under subsection (aX4) of this section shall 
be paid annually at the beginning of the 12-month period for which 
the officer is entitled to such payment. 
"(e) An officer who voluntarily terminates service on active duty 
before the end of the period for which a payment was made to such 
officer under subsection (a)(4) of this section shall refund to the 
United States an amount which bears the same ratio to the amount 
paid to such officer as the unserved part of such period bears to the 
total period for which the payment was made. 
"(f) A discharge in bankruptcy under title 11 shall not release a 
person from an obligation to reimburse the United States required 
under the terms of an agreement described in subsection (b) of this 
section if the final decree of the discharge in bankruptcy was issued 
within a period of five years after the last day of a period which such 
person had agreed to serve on active duty. This subsection applies to 
a discharge in bankruptcy in any proceeding which begins after 
September 30,1985. 
"(g) For purposes of this section, creditable service of an officer is 
computed by adding— 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 651 
"(1) all periods which the officer spent in dental internship or 
residency training during which the officer was not on active 
duty; and 
"(2) all periods of active service in the Dental Corps of the 
Army or Navy, as an officer of the Air Force designated as a 
dental officer, or as a dental officer of the Public Health 
Service.". 
(b) REPEAL OF CONTINUATION PAY FOR DENTISTS.—Section 311 of 
such title is repealed. 
37 USC 311. 
(c) AUTHORITY FOR CERTAIN DENTAL OFFICERS TO EXECUTE NEW 
37 use 302b 
AGREEMENTS.—(1) Subject to paragraphs (2) and (3), a dental officer 
^°^-
who on October 1, 1985, is performing obligated service under an 
agreement under section 311 of title 37, United States Code, that— 
Supra. 
(A) was executed after June 29, 1985; and 
(B) is affected by the limitation in section 8091 of the Depart-
ment of Defense Appropriations Act, 1985 (as contained in 
98 Stat. 1940. 
section 101(h) of Public Law 98-473), 
may execute a new agreement under section 302b of such title (as 
Ante, p. 649. 
amended by subsection (a)). 
(2) A dental officer may not execute a new agreement under 
paragraph (1) unless the amount that may be paid such officer 
under an agreement under section 302b of title 37, United States 
Code (as amended by subsection (a)), is greater than the amount to 
be paid the officer under the existing agreement of the officer under 
section 311 of such title. 
Supra. 
(3) In executing a written agreement under paragraph (1), the 
officer shall agree to remain on active duty for an additional length 
of time equal to or exceeding the length of time originally required 
by the existing agreement, beginning on the date the officer accepts 
the award of special pay under the new agreement. 
(4) If a new agreement is executed under this subsection, the 
existing agreement of the officer shall be canceled. 
(5) For the purposes of this section, the term "dental officer" has 
the meaning given that term in section 101 of title 10, United States 
Code. 
(d) SAVE PAY.—(1) An officer described in paragraph (2) who, after 
37 USC 302b 
September 30, 1985, is entitled to special pay under section 302b of 
note. 
title 37, United States Code (as amended by subsection (a)), shall be 
entitled to such pay in an annual amount that is not less than the 
total annual amount of dental continuation pay under section 311 of 
title 37, United States Code, and special pay for dental officers under 
section 302b of that title to which that officer was entitled on 
September 30, 1985. 
(2) Paragraph (1) applies to an officer who on September 30, 1985, 
is entitled to dental continuation pay under section 311 of title 37, 
United States Code; or to special pay for dental officers under 
section 302b of that title. 
(e) CLERICAL AMENDMENTS.—The table of sections at the beginning 
of chapter 5 of such title is amended— 
(1) by striking out the item relating to section 302b and 
inserting in lieu thereof the following: 
"302b. Special pay: dental officers of the armed forces."; and 
(2) by striking out the item relating to section 311. 
(f) EFFECTIVE DATE.—The amendments made by this section take 
37 USC 302b 
effect on October 1, 1985. 
note. 
51-194 O - 
88 - 
22 : QL. 3 
99 STAT. 652 
PUBLIC LAW 99-145—NOV. 8, 1985 
SEC. 640. SPECIAL PAY FOR MEDICAL OFFICERS 
Section 302 of title 37, United States Code, is amended— 
(1) by striking out "is not" in subsection (hXlXB) and inserting 
in lieu thereof "who is"; and 
(2) by adding at the end thereof the following new subsection: 
"(i) A discharge in bankruptcy under title 11 that is entered less 
than 5 years after the termination of an agreement under this 
section does not discharge the person signing such agreement from a 
debt arising under such agreement or under paragraph (1) of this 
subsection. This paragraph applies to any case commenced under 
title 11 after September 30,1985." 
SEC. 64L SPECIAL PAY FOR QUALIFIED ENLISTED MEMBERS EXTENDING 
DUTY AT CERTAIN LOCATIONS OVERSEAS 
(a) INCREASE IN RATE OF MONTHLY SPECIAL PAY.—Section 314(a) of 
title 37, United States Code, is amended by striking out "$50" and 
inserting in lieu thereof "$80" 
37 use 314 note. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect on October 1,1985. 
Subpart 2—Reserve Forces 
SEC. 642. SELECTED RESERVE ENLISTMENT BONUS 
Section 308c of title 37, United States Code, is amended by strik-
ing out "September 30, 1985" in subsection (f) and inserting in lieu 
thereof "September 30, 1987" 
SEC. 643. SELECTED RESERVE REENLISTMENT BONUS 
(a) INCREASE IN RATES; TWO-YEAR EXTENSION.—Section 308b of 
title 37, United States Code, is amended— 
(1) in subsection (b)— 
(A) by striking out "$450" and "$900" in paragraph (1) 
and inserting in lieu thereof "$1,250" and "$2,500", respec-
tively; and 
(B) by striking out "$150" in paragraph (2) and inserting 
in lieu thereof "$416.66"; 
(2) by striking out "$25" in subsection (dX2) and inserting in 
lieu thereof "$69.44"; and 
(3) by striking out "September 30, 1985" in subsection (g) and 
inserting in lieu thereof "September 30, 1987". 
37 use 308b 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
note. 
shall take effect on October 1,1985. 
SEC. 644. SELECTED RESERVE ENLISTMENT BONUS FOR PRIOR-SERVICE 
PERSONNEL 
(a) IN GENERAL.—(1) Chapter 5 of title 37, United States Code, is 
amended by inserting after section 308h the following new section: 
37 use 308i. 
"§ 308i. Special pay: prior service enlistment bonus 
"(aXD A person who is a former enlisted member of an armed 
force who enlists in the Selected Reserve of the Ready Reserve of an 
armed force for a period of three or six years in a critical military 
skill designated for such a bonus by the Secretary concerned and 
who meets the requirements of paragraph (2) may be paid a bonus as 
prescribed in subsection (b). 
"(2) A bonus may only be paid under this section to a person 
who— 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 653 
"(A) has completed his military service obligation but has less 
than 10 years of total military service; 
"(B) has received an honorable discharge at the conclusion of 
military service; 
"(C) is not being released from active service for the purpose 
of enlistment in a reserve component; and 
"(D) has not previously been paid a bonus for enlistment, 
reenlistment, 
or 
extension 
of enlistment 
in 
a 
reserve 
component. 
"(b) The bonus to be paid under subsection (a) shall be— 
"(1) an initial payment o
f
— 
"(A) an amount not to exceed $1,250, in the case of a 
member who enlists for a period of three years; or 
"(B) an amount not to exceed $2,500 in the case of a 
member who enlists for a period of six years; and 
"(2) a subsequent payment of an amount not to exceed $416.66 
upon the completion of each year of the period of such reenlist-
ment or extension of enlistment during which such member has 
satisfactorily participated in unit training. 
"(c) A member may not be paid more than one bonus under this 
section. 
"(d) A person who receives a bonus payment under this section 
and who fails during the period for which the bonus was paid to 
serve satisfactorily in the element of the Selected Reserve of the 
Ready Reserve with respect to which the bonus was paid shall 
refund to the United States an amount that bears the same relation 
to the amount of the bonus paid to such person as the period that 
such person failed to serve satisfactorily bears to the total period for 
which the bonus was paid. 
"(e) An obligation to reimburse the United States imposed under 
subsection (d) of this section is, for all purposes, a debt owed to the 
United States. 
"(f) Under regulations prescribed pursuant to subsection (h) of this 
section, the Secretary concerned may remit or cancel the whole or 
any part of an obligation to reimburse the United States imposed 
under subsection (d) of this section. 
"(g) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of an enlistment for which a 
bonus was paid under this section shall not discharge the person 
receiving such bonus payment from the debt arising under subsec-
tion (d) of this section. This subsection applies to any case com-
menced under title 11 after September 30, 1985. 
"(h) This section shall be administered under regulations pre-
scribed by the Secretary of Defense for the armed forces under his 
jurisdiction and by the Secretary of Transportation for the Coast 
Guard when the Coast Guard is not operating as a service in the 
Navy. 
"(i) No bonus may be paid under this section to any person for an 
enlistment after September 30, 1987.". 
(2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 308h the 
following new item: 
"308i. Special pay: prior service enlistment bonus.". 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
37 USC 3081 
shall take effect on October 1, 1985. 
note. 
99 STAT. 654 
PUBLIC LAW 99-145—NOV. 8, 1985 
SEC. 645. SELECTED RESERVE AFFILIATION BONUS 
(a) INCREASE AND EXTENSION.—Section 308e of title 37, United 
States Code, is amended— 
(1) by striking out "$25" in subsection (cXD and inserting in 
lieu thereof "up to $50 as determined by the Secretary con-
cerned"; and 
(2) by striking out "September 30, 1985" in subsection (e) and 
inserting in lieu thereof "September 30, 1987". 
37 use 308e 
(b) EFFECTIVE DATE.—The amendments made by this section shall 
note. 
take effect on October 1, 1985. 
SEC. 646. INDIVIDUAL READY RESERVE BONUSES 
(a) Two-YEAR EXTENSION OF REENLISTMENT AND ENLISTMENT 
37 use 308g, 
BONUSES.—(1) Sections 308g(h) and 308h(g) of such title are amended 
308h. 
by striking out "September 30, 1985" and inserting in lieu thereof 
"September 30,1987". 
(b) ENHANCED IRR BONUS FOR PERSONS WITH CRITICAL SKILLS.—(1) 
Subsection (aXD of section 308h of title 37, United States Code, is 
amended by striking out "for a period of not less than three years" 
and inserting in lieu thereof "for a period of three years, or for a 
period of six years,". 
(2) Subsection (b) of such section is amended— 
(A) by inserting "(1)" after "(b)"; 
(B) by striking out ", except that" and all that follows and 
inserting in lieu thereof a period; and 
(C) by adding at the end thereof the following new para-
graphs: 
"(2) The amount of a bonus under this section— 
"(A) may not exceed $1,500, in the case of a person who enlists 
for a period of six years; and 
"(B) may not exceed $750 in the case of a person who enlists 
for a period of three years. 
"(3) A bonus paid under this section shall be paid as follows: 
"(A) In the case of a bonus under paragraph (2)(A) of this 
subsection— 
"(i) $500 shall be paid at the time of the reenlistment, 
enlistment, or extension of enlistment for which the bonus 
is paid; and 
"(ii) the remainder shall be paid in equal annual incre-
ments. 
"(B) In the CEise of a bonus under paragraph (2)(B) of this 
subsection, the amount of the bonus shall be paid in equal 
annual increments.". 
(c) AUTHORITY TO REQUIRE MUSTER OR DRILL FOR ENHANCED 
BONUS.—Subsection (f) of such section is amended— 
(1) by inserting "(1)" after "(f)"; and 
(2) by adding at the end thereof the following new paragraph: 
"(2) Regulations under this section may require that as a condi-
tion of receiving a bonus under this section the person receiving the 
bonus agree to participate in an annual muster of the Reserves, or 
in active duty for training, as may be required by the Secretary 
concerned.". 
37 use 308h 
(d) EFFECTIVE DATE.—The amendments made by this section shall 
note. 
take effect on October 1,1985. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 655 
SEC. 647. SELECTED RESERVE HAZARDOUS DUTY INCENTIVE PAY 
(a) MODIFICATION OF COMPUTATION OF HAZARDOUS DUTY PAY FOR 
RESERVES.—Section 301(f) of title 37, United States Code, relating to 
incentive pay for hazardous duty, is amended— 
(1) by inserting "(1)" after "(f)"; 
(2) by inserting "for the entire month" before the period at 
the end; and 
(3) by adding at the end thereof the following new paragraph: 
"(2)(A) If in any calendar month a member performs duty as 
described in paragraph (1) of this subsection and while entitled to 
basic pay also performs hazardous duty as described in the same 
clause of subsection (a) as constitutes the predicate for his entitle-
ment under paragraph (1) of this subsection, the earned units of 
measuring entitlement for incentive pay under this section shall be 
combined. If the sum of units determined under the preceding 
sentence equals or exceeds the minimum standard prescribed by the 
President for entitlement to pay specified under subsections (b) and 
(c) of this section for a member of corresponding grade who is 
entitled to basic pay for the entire relevant month, the member 
shall be entitled to an increase in compensation equal to 1/30 of the 
monthly incentive pay authorized by subsection (b) or (c) of this 
section for the performance of that hazardous duty by a member of 
corresponding grade who is entitled to basic pay for the entire 
month. 
"(B) A member who qualifies for entitlement under this para-
graph is entitled to the increase for each day in the relevant month 
in which he is entitled to basic pay pursuant to section 204 of this 
title or to compensation under section 206 of this title. 
37 USC 204, 206. 
"(C) In this paragraph, 'units' means the significant increments of 
performance prescribed as qualifying standards in regulations 
promulgated by the President pursuant to this section.". 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 37 USC 301 note. 
shall apply to payments of incentive pay for hazardous duty per-
formed after September 30,1985. 
PART D—HEALTH-CARE MATTERS 
SEC. 651. C H A M P U S DENTAL CARE FOR ACTIVE-DUTY DEPENDENTS 
(a) 
DENTAL BENEFITS FOR DEPENDENTS OF ACTIVE-DUTY MEM-
BERS.—(1) Chapter 55 of title 10, United States Code, is amended by 
inserting after section 1076 the following new section: 
"§ 1076a. Dependents' dental program 
10 USC I076a. 
"(a)(1) The Secretary of Defense may establish dental benefit 
plans for spouses and children (as described in section 1072(2)(D) of 
this title) of members of the uniformed services who are on active 
98 Stat. 2869. 
duty for a period of more than 30 days. Any plan under this section 
10 USC 1072. 
shall provide for voluntary enrollment of participants and shall 
include provisions for premium-sharing between the Department of 
Defense and members enrolling in the program. 
"(2) A plan under this section shall be administered under regula-
tions prescribed by the Secretary of Defense in consultation with the 
other administering Secretaries. 
"(bXl) Members enrolling in a dental benefit plan established 
under subsection (a) shall be required to pay a share of the mem-
ber's premium. 
99 STAT. 656 
PUBLIC LAW 99-145—NOV. 8, 1985 
Contract. 
10 u s e 1077. 
Ante, p. 655. 
10 u s e 1076. 
eontract. 
Prohibition. 
10 u s e 1076a 
note. 
Supra. 
"(2) The Secretary of Defense shall establish the amount of the 
premium to be paid by a member enrolled in a plan under this 
section. 
"(c) A member's share of the premium for a plan established 
under subsection (a) shall be paid by deductions from the basic pay 
of the member. 
"(d) The dental benefits provided under such a plan may not 
include a benefit other than— 
"(1) diagnostic, oral examination, and preventive services and 
palliative emergency care; and 
"(2) basic restorative services of amalgam and composite res-
torations and stainless steel crowns for primary teeth, and 
dental appliance repairs. 
"(e) Any such plan shall provide that a member whose spouse or 
child receives care under a plan established under this section— 
"(1) may not be required to pay for any charge for care 
described in subsection (d)(1); and 
"(2) shall be required to pay 20 percent of the charges for care 
described in subsection (d)(2). 
"(f) If a member who is enrolled in a plan established under this 
section is transferred to a duty station where dental care is provided 
to the member's spouse or children under a program other than a 
plan established under this section, the member may discontinue 
participation under the plan established under this section. If the 
member is later transferred to a station where dental care is not 
provided to such member's spouse or children except under a plan 
established under this section, the member may re-enroll in such a 
plan. 
"(g) The authority of the Secretary of Defense to enter into a 
contract under this section for any fiscal year is subject to the 
availability of appropriations for that purpose". 
(2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1076 the 
following new item: 
"1076a. Dependents' dental program.". 
(b) CONFORMING AMENDMENT.—Section 1077 of such title is 
amended by adding at the end thereof the following new subsection: 
"(c) A dependent participating under a dental plan established 
under section 1076a of this title may not be provided dental care 
under section 1076(a) of this title except for emergency dental care 
and care that is not covered by such plan.". 
(c) EFFECTIVE DATE.—The Secretary of Defense may not enter into 
a contract under section 1076a of title 10, United States Code, as 
added by subsection (a), or otherwise obligate funds under that 
section before September 30, 1986. 
SEC. 652. ENHANCED HEALTH-CARE BENEFITS FOR SURVIVORS OF CER-
TAIN RESERVISTS 
(a) MEDICAL AND DENTAL CARE IN FACILITIES OF THE UNIFORMED 
SERVICES.—Section 1076(a) of title 10, United States Code, is amend-
ed to read as follows: 
"(aKl) A dependent described in paragraph (2) is entitled, upon 
request, to the medical and dental care prescribed by section 1077 of 
this title in facilities of the uniformed services, subject to the 
availability of space and facilities and the capabilities of the medical 
and dental staff. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 65'; 
10 use 1076 
note. 
"(2) A dependent referred to in paragraph (1) is a dependent of a 
member of a uniformed service— 
"(A) who is on active duty for a period of more than 30 days or 
who died while on that duty; or 
"(B) who died from anjnjury or illness incurred or aggravated— 
"(i) while on active duty under a call or order to active 
duty of 30 days or less, on active duty for training, or on 
inactive duty training; or 
"(ii) while traveling to or from the place at which the 
member is to perform, or has performed, such active duty, 
active duty for training, or inactive duty training.". 
(b) CHAMPUS CARE.—Section 1086(c)(2) of such title is amended 
10 USC 1086. 
to read as follows: 
"(2) A dependent (other than a dependent covered by section 
1072(2)(E) of this title) of a member of a uniformed service— 
10 USC 1072. 
"(A) who died while on active duty for a period of more 
than 30 days; or 
"(B) who died from an injury or illness incurred or 
aggravated— 
"(i) while on active duty under a call or order to 
active duty of 30 days or less, on active duty for train-
ing, or on inactive duty training; or 
"(ii) while traveling to or from the place at which the 
member is to perform, or has performed, such active 
duty, active duty for training, or inactive duty 
training.". 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
apply only with respect to dependents of members of the uniformed 
services whose deaths occur after September 30,1985. 
SEC. 653. LICENSURE REQUIREMENT FOR DEFENSE 
HEALTH-CARE 
PROFESSIONALS 
(a) IN GENERAL.—(1) Chapter 55 of title 10, United States Code, is 
amended by adding at the end thereof the following new section: 
"§1094. Licensure requirement for health-care professionals 
10 USC 1094. 
"(aXD A person under the jurisdiction of the Secretary of a 
Prohibition. 
military department may not provide health care independently as 
a health-care professional under this chapter unless the person has 
a current license to provide such care. 
"(2) The Secretary of Defense may waive paragraph (1) with 
respect to any person in unusual circumstances. The Secretary shall 
Regulation. 
prescribe by regulation the circumstances under which such a 
waiver may be granted. 
"(h) The commanding officer of each health care facility of the 
Department of Defense shall ensure that each person who provides 
health care independently as a health-care professional at the facil-
ity meets the requirement of subsection (a). 
"(cXD A person (other than a person subject to chapter 47 of this 
title) who provides health care in violation of subsection (a) is 
37 USC 801 et 
subject to a civil money penalty of not more than $5,000. 
seq. 
"(2) The provisions of subsections (b) and (d) through (g) of section 
1128A of the Social Security Act (42 U.S.C. 1320a-7a) shall apply to 
the imposition of a civil money penalty under paragraph (1) in the 
same manner as they apply to the imposition of a civil money 
penalty under that section, except that for purposes of this 
subsection— 
99 STAT. 658 
PUBLIC LAW 99-145—NOV. 8, 1985 
"(A) a reference to the Secretary in that section is deemed a 
reference to the Secretary of Defense; and 
"(B) a reference to a claimant in subsection (e) of that section 
is deemed a reference to the person described in paragraph (1). 
"(d) In this section: 
"(1) 'License'— 
"(A) means a grant of permission by an official agency of 
a State, the District of Columbia, or a Commonwealth, 
territory, or possession of the United States to provide 
health care independently as a health-care professional; 
and 
"(B) includes, in the case of such care furnished in a 
foreign country by any person who is not a national of the 
United States, a grant of permission by an official agency of 
that foreign country for that person to provide health care 
independently as a health-care professional. 
"(2) 'Health-care professional means a physician, dentist, 
clinical psychologist, or nurse and any other person provid-
ing direct patient care as may be designated by the Sec-
retary of Defense in regulations.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following new item: 
"1094. Licensure requirement for health-care professionals.". 
10 use 1094 
(b) TRANSITION.—Section 1094 of title 10, United States Code, as 
note. 
added by subsection (a), does not apply during the three-year period 
beginning on the date of the enactment of this Act with respect to 
the provision of health care by any person who on the date of the 
enactment of this Act is a member of the Armed Forces. 
SEC. 654. STUDY OF MEDICAL CASUALTY INVESTIGATIONS 
(a) IN GENERAL.—The Secretary of Defense shall study the proce-
dures used by the military departments for medical casualty inves-
tigations relating to members of the Armed Forces who die or are 
seriously injured while on active duty. 
(b) SCOPE OF STUDY.—The study by the Secretary under subsection 
(a) shall include consideration of the following: 
(1) The need, and appropriate standards, for uniform policies 
of the military departments with respect to autopsies of mem-
bers of the Armed Forces who die while on active duty, tak-
ing into account religious sensibilities of members and their 
families. 
(2) The need, and appropriate standards, for a policy of the 
Department of Defense with respect to independent review of 
autopsies, and other aspects of medical CEisualty investigations, 
conducted by the Armed Forces, including the appropriate role 
of the Armed Forces Institute of Pathology. 
(3) Appropriate policies and procedures for retaining, in safe-
keeping, all medical investigative materials (including photo-
graphs, specimens, slide and other records of any autopsy) and, 
to the extent not inconsistent with national security, making 
such materials available to survivors of members of the Armed 
Forces who die while on active duty. 
(4) The desirability of establishing an independent board of 
medical examination in the Department of Defense, to consist of 
five or more practitioners of medicine who are recognized 
experts in the investigation of causes of death, with the function 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 659 
of advising the Secretary of Defense on the operation of the 
Armed Forces Institute of Pathology and on the rehability and 
independence of the Institute's investigations of military 
casualties. 
(c) REPORT.—(1) The Secretary of Defense shall submit to Congress 
a report on the results of the study under subsection (a). The report 
shall include— 
(A) the Secretary's findings and recommendations; 
(B) an analysis and description of all actions taken by the 
Department of Defense to implement any such recommenda-
tion; and 
(C) the Secretary's recommendations with respect to any 
legislation needed to implement any such recommendation. 
(2) The report shall be submitted not later than one year after the 
date of the enactment of this Act. 
PART E—MILITARY RETIREMENT 
SEC. 666. LIMITATION ON AMOUNTS AVAILABLE FOR OBLIGATION FOR 
BASIC PAY AND FOR RETIRED PAY ACCRUAL CHARGE 
From amounts appropriated or otherwise available to the Depart-
ment of Defense for military personnel accounts for fiscal year 1986, 
the total amount obligated from each such account for military basic 
pay and payments into the Department of Defense Military Retire-
ment Fund pursuant to section 1466(a) of title 10, United States 
Code, may not exceed the following: 
(1) For the Department of the Army— 
(A) for payments from the appropriation account "Mili-
tary Personnel, Army", $15,951,800,000; 
(B) for 
payments 
from 
the appropriation 
account 
"Reserve Personnel, Army", $1,595,500,000; and 
(C) for 
payments 
from 
the 
appropriation 
account 
"National Guard Personnel, Army", $2,503,600,000. 
(2) For the Department of the Navy— 
(A) for payments from the appropriation account "Mili-
tary Personnel, Navy", $11,689,900,000; 
(B) for payments from the appropriation account "Mili-
tary Personnel, Marine Corps", $3,659,600,000; 
(C) for 
payments from 
the appropriation 
account 
"Reserve Personnel, Navy", $939,300,000; and 
(D) for 
payments from 
the appropriation 
account 
"Reserve Personnel, Marine Corps", $202,200,000. 
(3) For the Department of the Air Force— 
(A) for payments from the appropriation account "Mili-
tary Personnel, Air Force", $13,533,500,000; 
(B) for 
payments 
from 
the appropriation 
account 
"Reserve Personnel, Air Force", $437,300,000; and 
(C) for 
payments 
from 
the appropriation 
account 
"National Guard Personnel, Air Force'\ $754,500,000. 
SEC, 667. LEGISLATIVE PROPOSAL TO AMEND MILITARY RETIREMENT 
SYSTEM FOR NEW ENTRANTS 
(a) 
REQUIREMENT FOR SUBMISSION OF LEGISLATIVE PROPOSAL 
MAKING CHANGES IN MILITARY RETIREMENT SYSTEM.—(1) Not later 
than September 15, 1985, the Secretary of Defense shall submit to 
Congress a report (including draft legislation) proposing two sepa-
rate sets of changes in the military nondisability retirement system. 
Report. 
99 STAT. 660 
PUBLIC LAW 99-145—NOV. 8, 1985 
(2)(A) Each of the sets of changes to be proposed in the report 
under paragraph (1) shall include changes which, if enacted, would 
result in reductions in the amount required to be paid by the 
Secretary of Defense into the Department of Defense Military 
Retirement Fund pursuant to section 1466(a) of title 10, United 
States Code, during fiscal year 1986 in a total amount that would 
enable the Department of Defense to remain within the limits on 
obligations for basic pay and payments into such Fund prescribed by 
section 666 solely through such reductions. 
(B) One of the sets of changes to be proposed in such report shall 
consist only of changes in the military retirement system other than 
changes in the procedure for periodic cost-of-living adjustments in 
retired or retainer pay which, if enacted, would result in the 
required reductions. 
(3) Structural changes in the military retirement system to be 
proposed by the Secretary of Defense in either set of changes 
proposed in the report under paragraph (1)— 
(A) should apply only to individuals who initially become 
members of the Armed Forces after the effective date of such 
changes; and 
(B) should, to the maximum extent possible and consistent 
with military requirements, encourage members who are eli-
gible for retirement to remain on active duty beyond 20 years of 
service. 
Report. 
(4) At the same time the Secretary of Defense submits the report 
required by paragraph (1), the Secretary shall submit separate 
reports on the following: 
(A) The anticipated effects that the changes proposed in the 
report under paragraph (1) would have on recruiting and reten-
tion in the Armed Forces. 
(B) Proposals for additional changes in other elements of the 
military compensation system or in other military personnel 
programs, including changes in promotion and retention 
policies. 
(C) A description of the changes in military retirement, com-
pensation, or personnel programs that would be necessary if the 
reductions resulting from the funding limitations set forth in 
section 666 were $1,800,000,000, $2,900,000,000, $3,600,000,000, 
$4,000,000,000, or $5,400,000,000, as well as an evaluation of the 
effects such changes would have on recruiting and retention in 
the Armed Forces. 
(D) A plan that could be used to implement over a period of 
four or more years the changes proposed in the report under 
paragraph (1). 
(b) SPECIFICATION OF ACTUARIAL METHODS AND ASSUMPTIONS FOR 
FY86 RETIREMENT LEGISLATION.—In determining the cost, or the 
amount to be saved, as the result of the enactment of any legislative 
proposal that would make changes in the military retirement 
system effective during fiscal year 1985 or 1986, the actuarial meth-
ods and assumptions used shall be the same as those approved by 
the Board of Actuaries (in accordance with section 1465(d) of title 10, 
United States Code) for use in calculating the military retirement 
accrual percentage for the President's budget for fiscal year 1986. 
(c) RECALCULATION OF ACCRUAL PERCENTAGE UPON CHANGE IN 
BENEFITS.—(1) If a significant change in the military retirement 
system is enacted into law that takes effect during fiscal year 1985 
or 1986, the accrual percentage shall be recalculated taking into 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 661 
account that change in law. Any such recalculation shall be made 
using the actuarial methods and assumptions described in subsec-
tion (b). 
(2) In making determinations under section 1466(a) of title 10, 
United States Code, for months during fiscal years 1985 and 1986 
beginning on or after the effective date of any such change in law, 
the accrual percentage as recalculated under paragraph (1) shall be 
used in lieu of the accrual percentage that would otherwise be 
applicable. 
(d) DEFINITION OF ACCRUAL PERCENTAGE.—For purposes of this 
section, the term "accrual percentage" means the single level 
percentage of basic pay determined under section 1465(cXl) of title 
10, United States Code, for the purposes of computations under 
98 Stat. 2623. 
sections 1465(b) and 1466(a) of that title. 
PART F—EDUCATIONAL ASSISTANCE PROGRAMS 
SEC. 6
7
1
. DEPARTMENT 
OF 
DEFENSE 
EDUCATIONAL 
LOAN 
REPAYMENT 
PROGRAMS 
(a) CODIFICATION OF SECTION 902 PROGRAM.—(1) Part III of subtitle 
A of title 10, United States Code, is amended by adding at the end 
lo use prec. 
thereof the following new chapter: 
2001. 
"CHAPTER 109—EDUCATIONAL LOAN REPAYMENT 
PROGRAMS 
"Sec. 
"2171. General educational loan repayment program. 
"2172. Education loans for certain health professionals who serve in the Selected 
Reserve. 
"§ 2171. General educational loan repayment program 
lo use 2171. 
"(a)(1) Subject to the provisions of this section, the Secretary of 
Defense may repay— 
"(A) any loan made, insured, or guaranteed under part B of 
title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et 
seq.); or 
"(B) or any loan made under part E of such title (20 U.S.C. 
1087aa et seq.). 
Repayment of any such loan shall be made on the basis of each 
complete year of service performed by the borrower. 
"(2) The Secretary may repay loans described in paragraph (1) in 
the case of any person for— 
"(A) service performed— 
"(i) as an enlisted member of the Selected Reserve of the 
Ready Reserve of an armed force; and 
"(ii) in a reserve component and military specialty speci-
fied by the Secretary of Defense; or 
"(B) service performed on active duty as an enlisted member 
in a military specialty specified by the Secretary. 
In the case of service described in clause (A) of the first sentence of 
this paragraph, the Secretary may repay a loan described in para-
graph (1) only if the person to whom the loan was made performed 
such service after the loan was made. 
"(b) The portion or amount of a loan that may be repaid under 
subsection (a) is— 
99 STAT. 662 
PUBLIC LAW 99-145—NOV. 8, 1985 
"(1) 15 percent or $500, whichever is greater, for each year of 
service, in the case of service described in subsection (a)(2)(A); or 
"(2) 33V3 percent or $1,500, whichever is greater, for each 
year of service, in the case of service described in subsection 
(a)(2)(B). 
"(c) If a portion of a loan is repaid under this section for any year, 
interest on the remainder of such loan shall accrue and be paid in 
the same manner as is otherwise required. 
"(d) Nothing in this section shall be construed to authorize refund-
ing any repayment of a loan. 
"(e) Any individual who transfers from service described in clause 
(A) or (B) of subsection (a)(2) to service described in the other clause 
of such subsection during a year shall be eligible to have repaid a 
portion of such loan determined by giving appropriate fractional 
credit for each portion of the year so served, in accordance with 
regulations of the Secretary concerned. 
Regulation. 
"(f) The Secretary of Defense shall, by regulation, prescribe a 
schedule for the allocation of funds made available to carry out the 
provisions of this section during any year for which funds are not 
sufficient to pay the sum of the amounts eligible for repayment 
under subsection (a). 
10 use 2172. 
"§ 2172. Education loans for certain health professionals who serve 
in the Selected Reserve 
"(a) Under regulations prescribed by the Secretary of Defense and 
subject to the other provisions of this section, the Secretary con-
cerned may repay— 
"(1) a portion of a loan made, insured, or guaranteed under 
part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1071 et seq.); 
"(2) a loan made under part E of such title (20 U.S.C. 1087aa 
et seq.) after October 1, 1975; and 
"(3) a health education assistance loan made or insured under 
part C of title VII of the Public Health Service Act (42 U.S.C. 
294 et seq.). 
"(b) The Secretary concerned may repay loans described in subsec-
tion (a) only in the case of a person who— 
"(1) performs satisfactory service as an officer in the Selected 
Reserve of an armed force; and 
"(2) possesses professional qualifications in a health profes-
sion that the Secretary of Defense has determined to be needed 
critically in order to meet identified wartime combat medical 
skill shortages. 
"(c)(1) The amount of any repayment of a loan made under this 
section on behalf of any person shall be determined on the basis of 
each complete year of service that is described in subsection (bXD 
and performed by the person after the date on which the loan was 
made. 
"(2) Subject to paragraph (3), the portion of a loan that may be 
repaid under this section on behalf of any person may not exceed 
$3,000 for each year of service described in paragraph (1). 
"(3) The total amount that may be repaid on behalf of any person 
under this section may not exceed $20,000. 
"(d) The authority provided in this section shall apply only in the 
case of a person first appointed as a commissioned officer before 
October 1,1988.". 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 663 
(2) The tables of chapters at the beginning of subtitle A of such 
title and at the beginning of part III of such subtitle are amended by 
inserting after the item relating to chapter 108 the following new 
item: 
"109. Educational Loan Repayment Programs 
2171". 
(3) Section 902 of the Department of Defense Authorization Act, 
1981 (10 U.S.C. 2141 note), is repealed. 
98 Stat. 2572. 
(b) PERSONS TO WHOM APPLICABLE.—(1) The authority provided 
lO use 2171 
under section 2171 of title 10, United States Code, as added by note. 
subsection (a), shall apply only— 
^"^^' P- ^^1-
(A) in the case of persons who enlist or reenlist in the Selected 
Reserve of the Ready Reserve of an Armed Force or enlist or 
reenlist for service on active duty after September 30, 1980; 
(B) with respect to service performed after that date; and 
(C) with respect to loans made after October 1, 1975. 
(2) The authority provided under section 2172 of title 10, United 
10 USC 2172 
States Code, as added by subsection (a), shall apply only— 
"o*^-
(A) in the case of a person who is first appointed as a 
' ^' 
commissioned officer of an Armed Force after September 30, 
1985; and 
(B) with respect to service performed after that date. 
SEC. 672. SPECIALIZED TRAINING ASSISTANCE IN THE HEALTH PROFES-
SION FOR MEMBERS OF RESERVE COMPONENTS 
(a) AUTHORIZATION OF PROGRAM.—The Secretary of each military 
lo use 2121 
department, under regulations presciibed by the Secretary of 
note. 
Defense, may establish and maintain a program to provide financial 
assistance to persons engaged in specialized training in the health 
professions. 
(b) ELIGIBILITY REQUIREMENTS.—TO be eligible for financial assist- 
10 use 2121 
ance under this section, a person must be— 
note. 
(1) a commissioned officer in the Selected Reserve of a reserve 
component of the Armed Forces; and 
(2) engaged in a course of specialized training (approved by 
the Secretary of the military department concerned) in a health 
profession. 
(c) AMOUNT OF ASSISTANCE.—A person participating in the pro- 
10 use 2121 
gram provided for under this section shall be entitled to a monthly 
note, 
stipend at the rate paid, on October 1, 1985, to persons participating 
in the Armed Forces Health Professions Scholarship Program under 
chapter 105 of title 10, United States Code. That rate shall be 
10 use 2120 ef 
increased annually by the Secretary of Defense effective on July 1 of ««9-
each year by an amount (rounded to the next highest multiple of $1) 
equal to— 
(1) the amount of such stipend (as previously adjusted (if at 
all)), multiplied by 
(2) the overall precentage of the adjustment (if such adjust-
ment is an increase) in the rates of basic pay for members of the 
uniformed services made effective for the fiscal year in which 
the school year ends. 
(d) QUALIFICATIONS.—To be eligible for participation in the pro- 
lo use 2121 
gram provided for in this section, a person must be a citizen of the 
note. 
United States and must— 
(1) be qualified in a health profession as required in regula-
tions prescribed by the Secretary of Defense; 
(2) sign an agreement that, unless sooner separated, the 
participant will— 
99 STAT. 664 
PUBLIC LAW 99-145—NOV. 8, 1985 
(A) complete 
the 
specialized 
program 
of 
training 
approved by the Secretary of the military department con-
cerned; and 
(B) meet such other requirements as the Secretary con-
cerned may prescribe. 
10 use 2121 
(e) SELECTED RESERVE OBLIGATION.—A member who participates 
note. 
in a program provided for under this section incurs a Selected 
Reserve obligation of three years for each year or part thereof for 
which financial assistance is provided under this section. 
10 use 2121 
(f) FAILURE TO COMPLETE PROGRAM OF TRAINING.—(1) A member 
note. 
of the program who, under regulations prescribed by the Secretary 
of Defense, is dropped from the program for deficiency in training, 
or for other reasons, shall be required, at the discretion of the 
Secretary concerned— 
(A) to perform one year of active duty for each year (or part 
thereof) for which such person was provided financial assistance 
under this section; or 
(B) repay the United States an amount equal to the total 
amount paid to such person under the program. 
(2) The Secretary of a military department, under regulations 
prescribed by the Secretary of Defense, may relieve a member 
participating in the program who is dropped from the program from 
any requirement that may be imposed under paragraph (1), but such 
relief shall not relieve him from any military obligation imposed by 
any other law. 
10 use 2121 
(g) LIMITATIONS ON NUMBER OF PARTICIPANTS.—The number of 
note. 
persons who may be provided financial assistance under this section 
at any one time, when added to the total number of persons who are 
participating in the scholarship program provided for under chapter 
10 use 2120 et 
105 of title 10, United States Code, at any time, may not exceed 
seg. 
6,000. 
10 use 2121 
(h) DEFINITION.—For the purposes of this section, the term 
note. 
"specialized course of training' 
means a course of advanced 
training— 
(1) in a health profession; and 
(2) designated by the Secretary of the military department 
concerned to be training in a health profession skill critically 
needed by the military department concerned. 
(i) CHANGE IN NUMBER OF PERSONS AUTHORIZED TO RECEIVE 
FINANCIAL ASSISTANCE.—Section 2124 of title 10, United States 
Code, is amended by striking out "5,000" and inserting in lieu 
thereof "6,000". 
10 use 2124 
(j) EFFECTIVE DATE.—This section shall take effect on October 1, 
note. 
1985. 
SEC. 673. RIGHT OF MEMBERS OF NAVAL SERVICE TO TRANSFER CERTAIN 
EDUCATIONAL ENTITLEMENT TO SPOUSE OR DEPENDENT 
CHILDREN 
Section 2147(aXl) of title 10, United States Code, is amended— 
(1) by inserting "(A)" after "(aXD"; 
(2) by striking out the second sentence; and 
(3) by adding at the end thereof the following: 
"(B) The Secretary of the Navy may authorize a member of the 
Navy or Marine Corps who is entitled to educational assistance 
10 use 2142. 
under section 2142 of this title and whose enlistment that estab-
lished such entitlement was the member's second reenlistment as a 
member of the armed forces to transfer all or part of such entitle-
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 665 
ment to the spouse or dependent child of such member after the 
completion of four years of active service of that second reenlist-
ment if that reenlistment was for a period of at least six years. 
"(C) A transfer under this paragraph may be revoked at any time 
by the person making the transfer.". 
SEC. 674. CHANGES IN ELIGIBILITY REQUIREMENTS FOR THE ALL-VOLUN-
TEER FORCE EDUCATIONAL ASSISTANCE PROGRAM 
Chapter 30 of title 38, United States Code, is amended— 
(1) in section 1411(aXlXB), by striking out "and without a 
98 Stat. 2554. 
break in service on active duty since December 31, 1976,"; and 
^^ USC 1411. 
(2) in section 1412(a)(lXB), by striking out "and without a 
98 Stat. 2555. 
break in service on active duty since December 31, 1976," 
38 USC 1412. 
PART G—MISCELLANEOUS 
SEC. 681. LEGAL REPRESENTATION OF CIVILIANS OVERSEAS 
(a) IN GENERAL.—Section 1037(a) of title 10, United States Code, is 
amended by striking out the period at the end of the first sentence 
and inserting in lieu thereof "and of persons not subject to the 
Uniform Code of Military Justice who are employed by or accom-
panying the armed forces in an area outside the United States and 
the territories and possessions of the United States, the Northern 
Mariana Islands, and the Commonwealth of Puerto Rico.". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
10 USC 1037 
shall apply with respect to costs incurred after September 30, 1985. note. 
SEC. 682. ACCRUED LEAVE 
Section 501 of title 37, United States Code, is amended by striking 
out "September 1, 1976" in subsections (bX3) and (f) and inserting in 
lieu thereof "February 9,1976" 
SEC. 
6
8
3
. 
PAY 
ALLOTMENTS 
FOR 
NAVY 
AND 
MARINE 
CORPS 
(a) STANDARDIZATION OF NAVAL SERVICE PAY ALLOTMENTS WITH 
ARMY AND AIR FORCE.—(1) Section 701 of title 37, United States 
Code, is amended— 
(A) by striking out "of the Army or the Air Force" in subsec-
tions (a), (c), and (dXD and inserting in lieu thereof "of the 
Army, Navy, Air Force, or Marine Corps"; 
(B) by striking out "of the Army or the Air Force" in subsec-
tions (b) and (dX2) and inserting in lieu thereof "of the Army, 
Navy, or Air Force"; and 
(C) by striking out "Secretary of the Army or the Secretary of 
the Air Force, £is the case may be" in subsections (a) and (d) and 
inserting in lieu thereof "Secretary of the military department 
concerned". 
(2) The heading of such section is amended to read as follows: 
"§ 701. Members of the Army, Navy, Air Force, and Marine Corps; 
contract surgeons". 
(3) The item relating to such section in the table of sections in the 
beginning of chapter 13 of such title is amended to read as follows: 
"701. Members of the Army, Navy, Air Force, and Marine Corps; contract 
surgeons.". 
(b) CONFORMING AMENDMENTS.—(1) Sections 702, 705, and 805 of 
Repeal. 
such title are repealed. 
37 use 702, 705, 
805. 
99 STAT. 666 
PUBLIC LAW 99-145—NOV. 8, 1985 
98 Stat. 2613. 
10 u s e 133 note. 
10 u s e 133 note. 
10 u s e 133 note. 
Survivor Benefit 
Plan 
Amendments of 
1985. 
10 u s e 1447 
note. 
(2) The table of sections at the beginning of chapter 13 of such title 
is amended by striking out the items relating to sections 702 and 
705. 
(3) The table of sections at the beginning of chapter 15 of such title 
is amended by striking out the item relating to section 805. 
SEC. 6
8
4
. EXTENSION 
TO 
PHS 
AND NOAA OF 
AUTHORITY 
TO 
COLLECT 
DEBTS 
FROM 
PAY 
OF 
MEMBERS 
Section 1007(c) of title 37, United States Code, is amended by 
striking out "armed forces" and inserting in lieu thereof "uniformed 
services". 
SEC. 
6
8
5
. 
SURCHARGE 
FOR 
SALES 
AT 
ANIMAL 
DISEASE 
PREVENTION 
AND 
CONTROL 
CENTERS 
(a) REQUIRED SURCHARGE.—The Secretary of Defense shall require 
that each time a sale is recorded at a military animal disease 
prevention and control center the person to whom the sale is made 
shall be charged a surcharge of $2. 
Ot)) DEPOSIT OF RECEIPTS IN TREASURY.—Amounts received from 
surcharges under this section shall be deposited in the Treasury in 
accordance with section 3302 of title 31. 
(c) CONFORMING AMENDMENT.—Section 1033 of the Department of 
Defense Authorization Act, 1984 (Public Law 98-94; 97 Stat. 672), is 
repealed. 
(d) EFFECTIVE DATE.—This section shall take effect on October 1, 
1985. 
TITLE VII—SURVIVOR BENEFIT PLAN 
IMPROVEMENTS 
SEC. 701. SHORT TITLE 
This title may be cited as the 
ments of 1985". 
'Survivor Benefit Plan Amend-
PART A—GENERAL PROGRAM CHANGES 
SEC. 711. ESTABLISHMENT OF TWO-TIER BENEFIT SYSTEM AND ELIMI-
NATION OF SOCIAL SECURITY OFFSET 
(a) REVISION IN S B P ANNUITY (DOMPUTATION.—Section 1451 of title 
10, United States C!ode, is amended to read as follows: 
"§ 1451. Amount of annuity 
"(aXD In the case of a standard annuity provided to a beneficiary 
10 use 1450. 
under section 1450(a) of this title (other than under section 
1450(aX4)), the monthly annuity payable to the beneficiary shall be 
determined as follows: 
"(A) If the beneficiary is under 62 years of age when becoming 
entitled to the annuity, the monthly annuity shall be the 
amount equal to 55 percent of the base amount (as the base 
amount is adjusted from time to time under subsection 1401a of 
10 use 1401a. 
this title). 
"(B) If the beneficiary is 62 years of age or older when 
becoming entitled to the annuity, the monthly annuity shall be 
the amount equal to 35 percent of the base amount (as the base 
amount is adjusted from time to time under section 1401a of 
this title). However, if the beneficiary is eligible to have the 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 667 
annuity computed under subsection (e) and if, at the time the 
beneficiary becomes entitled to the annuity, computation of the 
annuity under that subsection is more favorable to the bene-
ficiary, the annuity shall be computed under that subsection. 
"(2) In the case of a reserve-component annuity provided to a 
beneficiary under section 1450(a) of this title (other than under 
10 USC 1450. 
section 1450(aX4)), the mcmthly annuity payable to the beneficiary 
shall be determined as follows: 
"(A) If the beneficiary is under 62 years of age when becoming 
entitled to the annuity, the monthly annuity shall be the 
amount equal to a percentage of the base amount (as the base 
amount is adjusted from time to time under section 1401a of 
this title) that— 
10 use I40ia. 
"(i) is less than 55 percent; and 
"(ii) is determined under subsection (f). 
"(B) If the beneficiary is 62 years of age or older when 
becoming entitled to the annuity, the monthly annuity shall be 
the amount equal to a percentage of the base amount (as the 
base amount is adjusted from time to time under section 1401a 
of this title) that— 
"(i) is less than 35 percent; and 
"(ii) is determined under subsection (f). 
However, if the beneficiary is eligible to have the annuity 
computed under subsection (e) and if, at the time the beneficiary 
becomes entitled to the annuity, computation of the annuity 
under that subsection is more favorable to the beneficiary, the 
annuity shall be computed under that subsection. 
"(bXD In the case of a standard annuity provided to a beneficiary 
under section 1450(aX4) of this title, the monthly annuity payable to 
the beneficiary shall be the amount equal to 55 percent of the 
retired pay of the person who elected to provide the annuity after 
the reduction in that pay in accordance with section 1452(c) of this 
title. 
10 use 1452. 
"(2) In the case of a reserve-component annuity provided to a 
beneficiary under section 1450(aX4) of this title, the monthly annu-
ity payable to the beneficiary shall be the amount equal to a 
percentage of the retired pay of the person who elected to provide 
the annuity after the reduction in such pay in accordance with 
section 1452(c) of this title that— 
"(A) is less than 55 percent; and 
"(B) is determined under subsection (f). 
"(3) For the purposes of paragraph (2), a person— 
"(A) who provides an annuity that is determined in accord-
ance with that paragraph; 
"(B) who dies before becoming 60 years of age; and 
"(C) who at the time of death is otherwise entitled to retired 
pay, 
shall be considered to have been entitled to retired pay at the time 
of death. The retired pay of such person for the purposes of such 
paragraph shall be computed on the basis of the rates of basic pay in 
effect on the date on which the annuity provided by such person is 
to become effective in accordance with the designation of such 
person under section 1448(e) of this title. 
lo use 1448. 
"(cXD In the case of an annuity provided under section 1448(d) or 
1448(f) of this title, the amount of the annuity shall be determined 
Post, pp. 
as follows: 
670, 671. 
99 STAT. 668 
PUBLIC LAW 99-145—NOV. 8, 1985 
"(A) If the person receiving the annuity is under 62 years of 
age when the member or former member dies, the monthly 
annuity shall be the amount equal to 55 percent of the retired 
pay to which the member or former member would have been 
entitled if the member or former member had been entitled to 
that pay based upon his years of active service when he died. 
"(B) If the person receiving the annuity is 62 years of age or 
older when the member or former member dies, the monthly 
annuity shall be the amount equal to 35 percent of the retired 
pay to which the member or former member would have been 
entitled if the member or former member had been entitled to 
that pay based upon his years of active service when he died. 
However, if the beneficiary is eligible to have the annuity 
computed under subsection (e) and if, at the time the beneficiary 
becomes entitled to the annuity, computation of the annuity 
under that subsection is more favorable to the beneficiary, the 
annuity shall be computed under that subsection. 
"(2) An annuity computed under paragraph (1) that is paid to a 
surviving spouse shall be reduced by the amount of dependency and 
indemnity compensation to which the surviving spouse is entitled 
98 Stat. 38, 2736. under section 411(a) of title 38. Any such reduction shall be effective 
on the date of the commencement of the period of payment of such 
compensation under title 38. 
"(3) In the case of an annuity provided by a member described in 
Post, p. 670. 
section 1448(dXlXC) of this title, the retired pay to which the 
member would have been entitled when he died shall be determined 
based upon the rate of basic pay in effect at the time of death for the 
highest grade other than a commissioned officer grade in which the 
member served on active duty satisfactorily, as determined by 
the Secretary concerned. 
"(4) In the case of an annuity paid under section 1448(f) of this 
Post, p. 671. 
title, the retired pay of the person providing the annuity shall for 
the purposes of paragraph (1) be computed on the basis of the rates 
of basic pay in effect on the effective date of the annuity. 
"(dXD The annuity of a person whose annuity is computed under 
clause (A) of subsection (aXD, (aX2), or (cXD shall be reduced on the 
first day of the month after the month in which the person becomes 
62 years of age. 
"(2XA) Except as provided in subparagraph (B), the reduced 
amount of the annuity shall be the amount of the annuity that the 
person would be receiving on that date if the annuity had initially 
been computed under clause (B) of that subsection. 
"(B) In the case of a person eligible to have the annuity computed 
under subsection (e) and for whom, at the time the person becomes 
62 years of age, an annuity computed with a reduction under 
subsection (eX3) is more favorable than an annuity with a reduction 
described in subparagraph (A), the reduction in the annuity shall be 
computed in the same manner as a reduction under subsection (eX3). 
"(eXD The following beneficiaries under the plan are eligible to 
have an annuity under the Plan computed under this subsection: 
"(A) A beneficiary receiving an annuity under the Plan on 
October 1, 1985, as the widow or widower of the person provid-
ing the annuity. 
(B) A spouse beneficiary of a person who on October 1, 
1985— 
"(i) is a participant in the Plan; 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 669 
"(ii) is entitled to retired pay or is qualified for that pay 
except that he has not applied for and been granted that 
pay; or 
"(iii) would be eligible for retired pay under chapter 67 of 
this title but for the fact that he is under 60 years of age. 
10 USC 1331 et 
"(2) Subject to paragraph (3), an annuity computed under this 
*^9-
subsection shall be determined as follows: 
"(A) In the case of a beneficiary of a standard annuity under 
section 1450(a) of this title, the annuity shall be the amount 
10 USC 1450. 
equal to 55 percent of the base amount (as the base amount is 
adjusted from time to time under section 1401a of this title). 
10 USC I40ia. 
"(B) In the case of a beneficiary of a reserve-component 
annuity under section 1450(a) of this title, the annuity shall be 
the percentage of the base amount (as the base amount is 
adjusted from time to time under section 1401a of this title) 
t h a t -
'll) is less than 55 percent; and 
"(ii) is determined under subsection (f), 
"(C) In the case of a beneficiary of an annuity under section 
1448(d) or 1448(f) of this title, the annuity shall be the amount 
Post, pp. 670,671. 
equal to 55 percent of the retired pay of the person providing 
the annuity (as that pay is determined under subsection (c)). 
"(3) An annuity computed under this subsection shall be reduced 
by the lesser of— 
"(A) the amount of the survivor benefit, if any, to which the 
widow or widower would be entitled under title II of the Social 
Security Act (42 U.S.C. 401 et seq.) based solely upon service by 
the person concerned as described in section 210(1X1) of such Act 
(42 U.S.C. 410(1X1)) and calculated assuming that the person 
concerned lives to age 65; or 
"(B) 40 percent of the amount of the monthly annuity £is 
determined under paragraph (2). 
"(4XA) For the purpose of paragraph (3), a widow or widower shall 
not be considered as entitled to a benefit under title II of the Social 
Security Act (42 U.S.C. 401 et seq.) to the extent that such benefit 
has been offset by deductions under section 203 of such Act (42 
U.S.C. 403) on account of work. 
"(B) In the computation of any reduction made under paragraph 
(3), there shall be excluded any period of service described in section 
210(1X1) of the Social Security Act (42 U.S.C. 410(1X1))— 
"(i) which was performed after December 1,1980; and 
"(ii) which involved periods of service of less than 30 continu- 
| 
ous days for which the person concerned is entitled to receive a 
refund under section 6413(c) of the Internal Revenue Code of 
1954 of the social security tax which the person had paid. 
26 USC 6413. 
"(f) The percentage to be applied in determining the amount of an 
annuity computed under subsection (aX2), (bX2), or (eX2XB) shall be 
determined under regulations prescribed by the Secretary of 
Defense. 
Such 
regiUations shall 
be 
prescribed 
taking 
into 
consideration— 
"(1) the age of the person electing to provide the annuity at 
the time of such election; 
"(2) the difference in age between such person and the bene-
ficiary of the annuity; 
"(3) whether such person provided for the annuity to become 
effective (in the event he died before becoming 60 years 'of age) 
99 STAT. 670 
PUBLIC LAW 99-145—NOV. 8, 1985 
10 u s e 1401a. 
10 use 1450. 
Repeal. 
10 use 1451 
and note. 
10 u s e 1448 
note. 
10 use 1447 et 
seq. 
98 Stat. 2548. 
on the day after his death or on the 60th anniversary of his 
birth; 
"(4) appropriate group annuity tables; and 
"(5) such other factors as the Secretary considers relevant. 
"(g)(1) Whenever retired pay is increased under section 1401a of 
this title (or any other provision of law), each annuity that is 
payable under the Plan shall be increased at the same time by the 
same total percent. The amount of the increase shall be based on the 
monthly annuity payable before any reduction under section 1450(c) 
of this title or under subsection (cX2). 
"(2) The monthly amount of an annuity payable under this sub-
chapter, if not a multiple of $1, shall be rounded to the next lower 
multiple of $1.". 
(b) CONFORMING AMENDMENT.—Section 641 of the Department of 
Defense Authorization Act, 1985 (Public Law 98-525; 98 Stat. 2545), 
is repealed, effective as of September 1,1985. 
(c) OPTION FOR CERTAIN PARTICIPANTS TO WITHDRAW.—A person 
who during the period beginning on October 19, 1984, and ending on 
the date of the enactment of this Act became a participant in the 
Survivor Benefit Plan under subchapter II of chapter 73 of title 10, 
United States Code, may elect to withdraw from the Plan before the 
end of the one-year period beginning on the date of the enactment of 
this Act. Any person who makes a withdrawal shall be paid the 
amount of the contributions by such person under the Plan, plus 
interest on such amount as determined by the Secretary of Defense. 
SEC. 712. SBP COVERAGE FOR MEMBERS WHO DIE AFTER 20 YEARS OF 
SERVICE 
(a) IN GENERAL.—Section 1448(d) of title 10, United States Code, is 
amended to read as follows: 
"(dXD The Secretary concerned shall pay an annuity under this 
subchapter to the surviving spouse of a member who dies on active 
duty after— 
"(A) becoming eligible to receive retired pay; 
"(B) qualifying for retired pay except that he has not applied 
for or been granted that pay; or 
"(C) completing 20 years of active service but before he is 
eligible to retire as a commissioned officer because he has not 
completed 10 years of active commissioned service. 
"(2) The Secretary concerned shall pay an annuity under this 
subchapter to the dependent child of a member described in para-
graph (1) if the member and the member's spouse die as a result of a 
common accident. 
"(3) If a member described in paragraph (1) is required under a 
court order or spousal agreement to provide an annuity to a former 
spouse upon becoming eligible to be a participant in the Plan or has 
made an election under subsection (b) to provide an annuity to a 
former spouse, the Secretary— 
"(A) may not pay an annuity under paragraph (1) or (2); but 
"(B) shall pay an annuity to that former spouse as if the 
member had been a participant in the Plan and had made an 
election under subsection (b) to provide an annuity to the 
former spouse, or in accordance with that election, as the case 
may be, if the Secretary receives a written request from the 
former spouse concerned that the election be deemed to have 
been made in the same manner as provided in section 1450(0(3) 
of this title. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 671 
"(4) An annuity that may be provided under this subsection shall 
be provided in preference to an annuity that may be provided under 
any other provision of this subchapter on account of service of the 
same member. 
"(5) The amount of an annuity under this subsection is computed 
under section 1451(c) of this title.". 
Ante, p. 666. 
(b) PERSONS COVERED.—(1) Section 1448(d) of title 10, United States 
10 USC 1448 
Code, as amended by subsection (a), applies to the surviving spouse 
^°^-
and dependent children of a person who dies on active duty after 
September 20, 1972, and the former spouse of a person who dies 
after September 7,1982. 
(2) In the case of the surviving spouse and children of a person 
who dies during the period beginning on September 21, 1972, and 
ending on October 1, 1985, the Secretary concerned shall take 
appropriate steps to locate persons eligible for an annuity under 
section 1448(d) of title 10, United States Code, as amended by 
subsection (a). Any such person must submit an application to the 
Secretary for such an annuity before October 1, 1988, to be eligible 
to receive such annuity. Any such annuity shall be effective only for 
months after the month in which the Secretary receives such 
application. 
SEC. 713. ANNUITY FOR SURVIVORS OF CERTAIN RETIREMENT-ELIGIBLE 
RESERVISTS 
(a) EuGiBiLiTY.—Section 1448 of title 10, United States Code, is 
amended by adding at the end thereof the following new subsection: 
"(fKl) The Secretary concerned shall pay an annuity under this 
subchapter to the surviving spouse of a person who is eligible to 
provide a reserve-component annuity and who dies— 
"(A) before being notified under section 1331(d) of this title 
10 USC 1331. 
that he has completed the years of service required for eligi-
bility for retired pay under chapter 67 of this title; or 
10 USC 1331 et 
"(B) during the 90-day period beginning on the date he 
s«9-
receives notification under section 1331(d) of this title that he 
has completed the years of service required for eligibility for 
retired pay under chapter 67 of this title if he had not made an 
election under subsection (aX2XB) to participate in the Plan. 
"(2) The Secretary concerned shall pay an annuity under this 
subchapter to the dependent child of a person described in para-
graph (1) if the person and the person's spouse die as a result of a 
common accident. 
"(3) If a person described in paragraph (1) is required under a 
court order or spousal agreement to provide an annuity to a former 
spouse upon becoming eligible to be a participant in the Plan or has 
made an election under subsection (b) to provide an annuity to a 
former spouse, the Secretary— 
"(A) may not pay an annuity under paragraph (1) or (2); but 
"(B) shall pay an annuity to that former spouse as if the 
person had been a participant in the Plan and had made an 
election under subsection (b) to provide an annuity to the 
former spouse, or in accordance with that election, as the case 
may be, if the Secretary receives a written request from the 
former spouse concerned that the election be deemed to have 
been made in the same manner as provided in section 1450(fK3) 
of this title. 
98 Stat. 2548. 
"(4) The amount of an annuity under this subsection is computed 
under section 1451(c) of this title.". 
Ante, p. 666. 
99 STAT. 672 
PUBLIC LAW 99-145—NOV. 8, 1985 
10 use 1450. 
(b) EFFECTIVE DATE OF ANNUITY.—Section 1450(j) of such title is 
amended by adding at the end thereof the following new sentence: 
Ante, p. 671. 
"An annuity payable under section 1448(f) of this title shall be 
effective on the day after the date of the death of the person upon 
whose service the right to the annuity is based.". 
10 use 1448 
(c) PERSONS COVERED.—(1) Section 1448(f) of title 10, United States 
^°^- 
Code, as added by subsection (a), shall apply to the surviving spouse 
and dependent children of any person who dies after September 30, 
1978, and the former spouse of a person who dies after September 7, 
1982. 
(2) In the case of the surviving spouse and dependents of a person 
who dies during the period beginning on September 30, 1978, and 
ending on October 1, 1985, the Secretary concerned shall take 
appropriate steps to locate persons eligible for an annuity under 
section 1448(f) of title 10, United States Code, as added by subsection 
(a). Any such person must submit an application to the Secretary for 
such an annuity before October 1, 1988, to be eligible to receive such 
annuity. Any such annuity shall be effective only for months after 
the month in which the Secretary receives such application. 
SEC. 
7
1
4
. 
INDEXING OF THRESHOLD AMOUNT FOR CALCULATION OF 
REDUCTION 
OF 
RETIRED 
PAY 
(a) IN GENERAL.—Section 1452(a) of title 10, United States Code, is 
amended— 
(1) by inserting "(1)" after "(a)"; 
(2) in the first sentence— 
(A) by redesignating clauses (1) and (2) as clauses (A) and 
(B), respectively; 
(B) in clause (A) (as so redesignated)— 
(i) by inserting "(as adjusted from time to time under 
paragraph (4))" after "$300"; and 
(ii) by striking out "an annuity by virtue of eligibility 
under section 1448(a)(1)(A) of this title" and inserting in 
lieu thereof "a standard annuity"; and 
(C) in clause (B) (as so redesignated), by striking out "an 
annuity by virtue of eligibility under section 1448(a)(1)(B)" 
and 
inserting in 
lieu thereof 
"a 
reserve-component 
annuity"; 
(3) by designating the second sentence as paragraph (2) and 
striking out "As long as" and all that follows through "that 
amount" and inserting in lieu thereof "If there is a dependent 
child as well as a spouse or former spouse, the amount pre-
scribed under paragraph (1)"; 
(4) by designating the third sentence as paragraph (3) and in 
such sentence— 
(A) by striking out "the first sentence of this subsection" 
and inserting in lieu thereof "paragraph (1)"; and 
(B) by inserting "or former spouse" after 
"eligible 
spouse"; and 
(5) by adding at the end thereof the following new paragraph: 
"(4)(A) Whenever there is an increase in the rates of basic pay of 
members of the uniformed services effective on or after October 1, 
1985, the amount under paragraph (1)(A) with respect to which the 
percentage factor of 2V2 is applied shall be increased by the overall 
percentage of such increase in the rates of basic pay. The increase 
under the preceding sentence shall apply only with respect to 
persons whose retired pay is computed based on the rates of basic 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 673 
10 use 1452 
note. 
pay in effect on or after the date of such increase in rates of basic 
pay. 
"(B) In addition to the increase under paragraph (4XA), the 
Effective date. 
amount under paragraph (IXA) with respect to which the percent-
age factor of 2y2 is applied shall be further increased at the same 
time and by the same percentage as an increase in retired pay under 
section 1401a of this title effective on or after October 1, 1985. Such 
lo use I40ia. 
increase under the preceding sentence shall apply only with respect 
to persons who initially participate in the Plan on a date which is 
after both the effective date of such increeise under section 1401a 
and the effective date of the rates of basic pay upon which their 
retired pay is computed.". 
(b) EFFECTIVE DATE.—The amendments made by clause (5) of 
subsection (a) shall apply only with respect to persons who first 
participate in the Plan on or after the effective date of this title. 
SEC. 
7
1
5
. 
SBP 
COVERAGE 
UPON 
REMARRIAGE 
(a) OPTION NOT TO RESUME COVERAGE UPON REMARRIAGE.—Sec-
tion 1448(a) of title 10, United States Ck)de, is amended by adding at 
the end thereof the following new paragraph: 
"(6XA) A person— 
"(i) who is a participant in the Plan and is providing coverage 
for a spouse or a spouse and child; 
"(ii) who does not have an eligible spouse beneficiary under 
the Plan; and 
"(iii) who remarries, 
may elect not to provide coverage under the Plan for the person's 
spouse. 
"(B) If such an election is made, no reduction in the retired pay of 
such person under section 1452 of this title may be made. An 
lO use 1452. 
election under this paragraph— 
"(i) is irrevocable; 
"(ii) shall be made within one year after the person's 
remarriage; and 
"(iii) shall be made in such form and manner as may be 
prescribed in regulations under section 1455 of this title. 
10 use 1455. 
"(C) If a person makes an election undei this paragraph— 
"(i) not to participate in the Plan; 
"(ii) to provide an annuity for the person's spouse at less than 
the maximum level; or 
"(iii) to provide an annuity for a dependent child but not for 
the person s spouse, 
the person's spouse shall be notified of that election. 
"(D) This paragraph does not affect any right or obligation to elect 
to provide an annuity to a former spouse under subsection (b).". 
(b) OPTION TO PROVIDE HIGHER COVERAGE UPON PAYMENT OF 
AMOUNT NOT PREVIOUSLY WITHHELD.—Section 1448 of such title is 
Ante, p. 671. 
amended by adding after subsection (f), as added by the amendment 
made by section 713(a), the following new subsection: 
"(gXD A person— 
"(A) who is a participant in the Plan and is providing cov-
erage under subsection (a) for a spouse or a spouse and child, 
but at less than the maximum level; and 
"(B) who remarries, 
may elect, within one year of such remarriage, to incresise the level 
of coverage provided under the Plan to a level not in excess of the 
current retired pay of that person. 
99 STAT. 674 
PUBLIC LAW 99-145—NOV. 8, 1985 
"(2) Such an election shall be contingent on the person paying to 
the United States the amount determined under paragraph (3) plus 
interest on such amount at a rate determined under regulations 
prescribed by the Secretary of Defense. 
"(3) The amount referred to in paragraph (2) is the amount equal 
to the difference between— 
"(A) the amount that would have been withheld from such 
10 use 1452. 
person's retired pay under section 1452 of this title if the higher 
level of coverage had been in effect from the time the person 
became a participant in the Plan; and 
"(B) the amount of such person's retired pay actually 
withheld. 
"(4) An election under paragraph (1) shall be made in such 
manner as the Secretary shall prescribe and shall become effective 
upon receipt of the payment required by paragraph (2). 
"(5) A payment received under this subsection by the Secretary of 
Defense shall be deposited into the Department of Defense Military 
Retirement Fund. Any other payment received under this subsec-
tion shall be deposited in the Treasury as miscellaneous receipts.". 
SEC. 716. OPTION TO COVER BOTH A FORMER SPOUSE AND DEPENDENT 
CHILDREN OF A MEMBER 
(a) OPTION TO PROVIDE COVERAGE.—Section 1448(b) of title 10, 
United States Code, is amended— 
(1) by inserting "(other than a child who is a beneficiary 
under an election under paragraph (4))" in the second sentence 
of paragraph (2) after "that spouse or child"; 
(2) by redesignating paragraph (4) as paragraph (5); and 
(3) by inserting after paragraph {'6) the following new para-
graph (4): 
"(4) A person who elects to provide an annuity for a former spouse 
under paragraph (2) or (3) may, at the time of the election, elect to 
provide coverage under that annuity for both the former spouse and 
a dependent child, if the child resulted from the person's marriage 
to that former spouse.". 
10 use 1448 
(b) REVISION FOR FORMER SPOUSE COVERAGE ALREADY IN EFFECT.— 
note. 
A person who before the date of the enactment of this Act made an 
election under section 1448(b) of title 10, United States Code, to 
provide an annuity for a former spouse may elect, within the one-
year period beginning on that date of enactment, to change that 
election so as to provide an annuity for the former spouse and the 
dependent children of the person, as authorized by paragraph (4) of 
that section added by subsection (a). Such an election may be made 
even though the former spouse for whom the annuity was provided 
has died. 
SEC. 717. AUTHORITY TO REPAY REFUNDED SBP DEDUCTIONS IN 
INSTALLMENTS 
Section 1450(k) of title 10, United States Code, is amended— 
(1) by inserting "(1)" after "(k)"; 
(2) by striking out "had never been made," and all that 
follows and inserting in lieu thereof "had never been made."; 
and 
(3) by adding at the end thereof the following new paragraph: 
"(2) A widow or widower whose annuity is readjusted under 
paragraph (1) shall repay any amount refunded under subsection (e) 
by reason of the adjustment under subsection (c). If the repayment is 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 675 
not made in a lump sum, the widow or widower shall pay interest on 
the amount to be repaid commencing on the date on which the first 
such payment is due and applied over the period during which any 
part of the repayment remains to be paid. The manner in which 
such repayment shall be made, and the rate of any such interest, 
shall be prescribed in regulations under section 1455 of this title. An 
lO use 1455. 
amount repaid under this paragraph (including any such interest) 
received by the Secretary of Defense shall be deposited into the 
Department of Defense Military Retirement Fund. Any other 
amount repaid under this paragraph shall be deposited into the 
Treasury as miscellaneous receipts.". 
SEC. 718. EFFECTIVE DATE OF DIC OFFSET 
Section 1450(c) of title 10, United States Code, is amended by 
adding at the end thereof the following new sentence: "A reduction 
in an annuity under this section required by the preceding sentence 
shall be effective on the date of the commencement of the period of 
payment of such compensation under title 38.". 
SEC. 719. TECHNICAL AMENDMENTS TO SBP STATUTE 
Subchapter II of chapter 73 of title 10, United States Code, is 
amended as follows: 
(1) Section 1447 is amended by adding at the end thereof the 
lo USC 1447. 
following new paragraphs: 
"(11) 'Retired pay' includes retainer pay. 
"(12) 'Standard annuity' means an annuity provided by virtue 
of eligibility under section 1448(a)(1)(A) of this title. 
lo USC 1448. 
"(13) 'Reserve-component annuity' means an annuity pro-
vided by virtue of eligibility under section 1448(aXl)(B) of this 
title.". 
(2) Section 1447(2)(C) is amended— 
10 USC 1447. 
(A) by striking out "an annuity by virtue of eligibility 
under section 1448(a)(1)(A) of this title" in subclause (i) and 
inserting in lieu thereof "a standard annuity"; and 
(B) by striking out "an annuity by virtue of eligibility 
under section 1448(a)(1)(B) of this title" in subclause (ii) and 
inserting in lieu thereof "a reserve-component annuity". 
(3) Paragraphs (1) and (2) of section 1448(b) are each amended 
Ante, p. 674. 
by striking out "an annuity under this paragraph by virtue of 
eligibility under subsection (a)(1)(B)" and inserting in lieu 
thereof "a reserve-component annuity". 
(4) Section 1450(b) is amended by striking out "under this 
lo USC 1450. 
section" and inserting in lieu thereof "under the Plan". 
(5) Section 1450(j) is amended by striking out "any person 
Ante, p. 672. 
providing an annuity by virtue of eligibility under section 
1448(a)(1)(B) of this title" and inserting in lieu thereof "a person 
providing a reserve-component annuity". 
(6) Section 1450(1) is amended— 
98 Stat. 2546. 
(A) by striking out "the plan" both places it appears in 
the first sentence of paragraph (1) and inserting in lieu 
thereof "the Plan"; and 
(B) by striking out "the provision o f in paragraph (2). 
(7) Section 1452(c) is amended— 
10 USC 1452. 
(A) by striking out "the annuity by virtue of eligibility 
under section 1448(aKlKA) of this title" and inserting in 
lieu thereof "a standard annuity"; 
99 STAT. 676 
PUBLIC LAW 99-145—NOV. 8, 1985 
(B) by striking out "the annuity by virtue of eligibility 
under section 1448(a)(1)(B) of this title" and inserting in lieu 
thereof "a reserve-component annuity"; and 
(C) by striking out "this section" in the third sentence 
and inserting in lieu thereof "this subsection". 
(8)(A) The following sections are each amended by striking out 
"or retainer" each place it appears: 1448(a)(1)(A), 1448(a)(2)(A), 
1448(bX3)(B), 1450(d), 1450(e), 1450(1)(1), 1450(l)(3)(A)(i), 1452. 
(B) The heading for section 1452, and the item relating to that 
section in the table of sections at the beginning of such sub-
chapter, are each amended by striking out the penultimate and 
antepenultimate words. 
PART B—PROVISIONS RELATING TO RIGHTS FOR SPOUSES AND FORMER 
SPOUSES 
SEC. 721. SPOUSAL CONCURRENCE FOR ELECTIONS 
(a) CONCURRENCE FOR S B P COVERAGE.—Section 1448(a) of title 10, 
United States Code, is amended— 
(1) by inserting "(with his spouse's concurrence, if required 
under paragraph (3))" in paragraph (2)(A) after "unless he 
elects"; and 
(2) by striking out paragraph (3) and inserting in lieu thereof 
the following: 
"(3)(A) A married person who is eligible to provide a standard 
annuity may not without the concurrence of the person's spouse 
elect— 
"(i) not to participate in the Plan; 
"(ii) to provide an annuity for the person's spouse at less than 
the maximum level; or 
"(iii) to provide an annuity for a dependent child but not for 
the person's spouse. 
"(B) A married person who elects to provide a reserve-component 
annuity may not without the concurrence of the person's spouse 
elect— 
"(i) to provide an annuity for the person's spouse at less than 
the maximum level; or 
"(ii) to provide an annuity for a dependent child but not for 
the person's spouse. 
"(C) A person may make an election described in subparagraph 
(A) or (B) without the concurrence of the person's spouse if the 
person establishes to the satisfaction of the Secretary concerned— 
"(i) that the spouse's whereabouts cannot be determined; or 
"(ii) that, due to exceptional circumstances, requiring the 
person to seek the spouse's consent would otherwise be inappro-
priate. 
"(D) This paragraph does not affect any right or obligation to elect 
to provide an annuity for a former spouse (or for a former spouse 
and dependent child) under subsection (b)(2). 
"(E) If a married person who is eligible to provide a standard 
annuity elects to provide an annuity for a former spouse (or for a 
former spouse and dependent child) under subsection (b)(2), that 
person's spouse shall be notified of that election.". 
(b) CONCURRENCE FOR ELECTION OF COVERAGE AT LESS THAN MAXI-
10 use 1447. 
MUM AMOUNT.—Section 1447(2)(C) of such title is amended by insert-
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 677 
ing "(with the concurrence of the person's spouse, if required under 
section 1448(aX3) of this title)" after "designated by the person". 
Ante, p. 676. 
SEC. 722. CLARIFICATION OF STATUS OF SPOUSAL AGREEMENTS 
Section 1450(f)(3) of title 10, United States Code, is amended— 
98 Stat. 2548. 
(1) in subparagraph (A)— 
(A) by inserting "or has been filed with the court of 
appropriate jurisdiction in accordance with applicable State 
law" after "by a court order"; and 
(B) by inserting "or receives a statement from the clerk of 
the court (or other appropriate official) that such agree-
ment has been filed with the court in accordance with 
applicable State law" before the period; and 
(2) in subparagraphs (B) and (C), by inserting "or filing" after 
"court order". 
SEC. 723. FORMER SPOUSE COVERAGE TO BE PROVIDED IN SPOUSE 
CATEGORY RATHER THAN INSURABLE INTEREST CATEGORY 
(a) SPECIFICATION OF BENEFICIARIES.—Section 1450(a) of title 10, 
United States Code, is amended— 
(1) by inserting "or the eligible former spouse" in clauses (1) 
and (2) after "widow or widower"; 
(2) in clause (3)— 
(A) by inserting "(with the concurrence of the person's 
spouse, if required under section 1448(a)(3) of this title)" 
Ante, p. 676. 
after "title applies"; and 
(B) by inserting "or former spouse" after "the spouse"; 
and 
(3) by striking out "former spouse or other" both places it 
appears in clause (4). 
(b) CONFORMING AMENDMENTS.—(1) Section 1450 of such title is 
Ante, p. 674. 
amended by striking out "widow or widower" each place it appears 
and inserting in lieu thereof "widow, widower, or former spouse". 
(2) Section 1452 of such title is amended— 
Ante, p. 672. 
(1) by inserting "or former spouse" after "spouse" the first 
two places it appears in subsection (a); and 
(2) by inserting "or former spouse" after "spouse" both places 
it appears in subsection (b). 
(c) ONE-YEAR OPEN PERIOD TO SWITCH COMPUTATION OF S B P 
lo use 1448 
ANNUITY.—A person who, before the effective date of this title, 
note. 
participated in the Survivor Benefit Plan under subchapter II of 
chapter 73 of title 10, United States Code, and had elected to provide 
10 USC 1447 et 
an annuity to a former spouse may, with the concurrence of such s«9-
former spouse, elect to terminate such annuity and provide an 
annuity to such former spouse under section 1450(a)(1) of such title. 
10 USC 1450. 
Any such election shall be made before the end of the 12-month 
period beginning on the date of the enactment of this Act. 
(d) ONE-YEAR OPEN PERIOD FOR NEW FORMER SPOUSE COVERAGE.— 
lo use 1448 
A person who before the effective date of this part was a participant 
"ote. 
in the Survivor Benefit Plan and did not elect to provide an annuity 
to a former spouse may elect to provide an annuity to a former 
spouse under the Plan. Any such election shall be made before the 
end of the 12-month period beginning on the date of the enactment 
of this Act. 
99 STAT. 678 
PUBLIC LAW 99-145—NOV. 8, 1985 
Ante, pp. 673, 
676. 
Ante, p. 676. 
Ante, pp. 673, 
674; 10 u s e 
1452. 
SEC. 724. NOTICE OF ELECTIONS AVAILABLE 
Section 1455 of title 10, United States Code, is amended by strik-
ing out paragraphs (1) and (2) and inserting in lieu thereof the 
following: 
"(1) provide that before the date the member becomes entitled 
to retired pay— 
"(A) if the member is married, the member and the 
member's spouse shall be informed of the elections avail-
able under section 1448(a) of this title and the effects of 
such elections; and 
"(B) if the notification referred to in section 1448(a)(3)(E) 
of this title is required, any former spouse of the member 
shall be informed of the elections available and the effects 
of such elections; and 
"(2) establish procedures for depositing the amounts referred 
to in sections 1448(g), 1450(k)(2), and 1452(d) of this title.". 
PART C—EFFECTIVE DATE AND REPORT 
10 u s e 1447 
note. 
10 u s e 1331 et 
seq. 
86 Stat. 706. 
Military Family 
Act of 1985. 
10 u s e 133 note. 
SEC. 731. EFFECTIVE DATE 
(a) EFFECTIVE DATE.—Except as otherwise provided in this title, 
the amendments made by this title shall take effect on the first day 
of the first month beginning more than 90 days after the date of the 
enactment of this Act. 
(b) PROSPECTIVE BENEFITS ONLY.—No benefit shall accrue to any 
person by reason of the enactment of this title for any period before 
the effective date under subsection (a). 
SEC. 732. REPORT ON ESTABLISHING NEEDS-BASED SURVIVOR BENEFIT 
ANNUITY PROGRAM FOR SURVIVING SPOUSES OF CERTAIN 
RETIRED RESERVISTS 
(a) REQUIREMENT FOR REPORT.—The Secretary of Defense shall 
submit to Congress a report containing a plan for establishing a 
needs-based survivor annuity program for surviving spouses of mem-
bers of the uniformed services who— 
(1) died before September 30,1978; and 
(2) at the time of death would have been eligible for retired 
pay under chapter 67 of title 10, United States Code, but for the 
fact they were under 60 years of age. 
(b) SCOPE OF PLAN.—The plan shall take into consideration the 
surviving spouse's income for purposes of determining eligibility 
under the plan. In developing the plan, the Secretary of Defense 
should analyze a variety of options, including a plan similar to the 
Minimum Income Widows Program established pursuant to Public 
Law 92-425, and shall provide an accounting of the number of 
potential beneficiaries and the projected cost under each such 
option. 
(c) DEADLINE FOR REPORT.—The report required by this section 
shall be submitted by December 31,1985. 
TITLE VIII—MILITARY FAMILY POLICY AND PROGRAMS 
SEC. 801. SHORT TITLE 
This title may be cited as the "Military Family Act of 1985". 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 679 
SEC. 802. OFFICE OF FAMILY POLICY 
10 USC 133 note. 
(a) ESTABLISHMENT.—There is hereby established in the Office of 
the Secretary of Defense an Office of Family Policy (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-
ID 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. 
(d) REPORT.—The Secretary of Defense shall submit a report to 
Congress concerning the Office no later than September 30, 1986, 
The report shall include— 
(1) a description of the activities of the Office and the composi-
tion of its staff; and 
(2) the recommendations of the Office for legislative and 
administrative action to enhance the well-being of military 
families. 
SEC. 803. TRANSFER OF MILITARY FAMILY RESOURCE CENTER 
10 USC 133 note. 
The Military Family Resource Center of the Department of De-
fense is hereby transferred from the Office of the Assistant Sec-
retary of Defense for Health Affairs to the Office of the Assistant 
Secretary for Force Management and Personnel. 
SEC. 804. SURVEYS OF MILITARY FAMILIES 
10 USC 133 note. 
The Secretary of Defense may conduct surveys of members of the 
Armed Forces serving on active duty, members of the families of 
such members, and retired members of the Armed Forces to deter-
mine the effectiveness of existing Federal programs relating to 
military families and the need for new programs. Responses to 
surveys conducted under this section shall be voluntary. With re-
spect to such surveys, family members of members of the Armed 
Forces and retired members of the Armed Forces shall be considered 
to be employees of the United States for purposes of section 
3502(4)(A) of title 44, United States Code. 
SEC. 805. FAMILY MEMBERS SERVING ON ADVISORY COMMITTEES 
10 USC 133 note. 
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. 
SEC. 806. EMPLOYMENT OPPORTUNITIES FOR MILITARY SPOUSES 
10 USC 133 note. 
(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, United States 
Code, from the competitive service positions in the Department 
99 STAT. 680 
PUBLIC LAW 99-145—NOV. 8, 1985 
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 perma-
nent 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 positions paid 
at hourly rates. 
(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 hiring to qualified spouses of mem-
bers of the Armed Forces in hiring for any position in the 
Department of Defense above grade GS-7 (or its equivalent) if 
the spouse is among persons determined to be best qualified for 
the position and if the position is located in the same geographi-
cal area as the permanent duty station of the member; 
(3) to ensure that notice of any vacant position in the Depart-
ment of Defense is provided in a manner reasonably designed to 
reach spouses of members of the Armed Forces whose perma-
nent 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 EUGIBLES.—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. 
10 use 133 note. 
SEC. 807. YOUTH SPONSORSHIP PROGRAM 
The Secretary of Defense shall direct that there be established at 
each military installation a youth sponsorship program to facilitate 
the integration of dependent children of members of the Armed 
Forces into new surroundings when moving to that military installa-
tion as a result of a parent's permanent change of station. Such a 
program shall, to the extent feasible, provide for involvement of 
dependent children of members presently stationed at the military 
installation. 
10 use 133 note. SEC. 808. 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. 
10 use 133 note. SEC. 809. RELOCATION AND HOUSING 
Report. 
Contracts. 
(a) RELOCATION ASSISTANCE.—The Secretary of Defense shall 
submit to Congress a report on the desirability and feasibility of 
providing relocation assistance to members of the uniformed serv-
ices and their families through contracts entered into by the Depart-
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 681 
ment of Defense with firms which provide such assistance to individ-
uals. Such report shall be submitted not later than March 1, 1986. 
(b) AMORTIZATION PERIOD FOR PARKING FACIUTIES FOR HOUSE 
TRAILERS AND MOBILE HOMES.—Section 403(k) of title 37, United 
States Code, is amended by striking out "15-year period" and insert-
ing in lieu thereof "25-year period". 
(c) COST OF UNACCOMPANIED PERSONNEL HOUSING FOR MEMBERS OF 
UNIFORMED SERVICE.—Section 5911 of title 5, United States Code, is 
amended by adding at the end thereof the following new subsection: 
"(h) A member of the uniformed service on a permanent change of 
duty station or temporary duty orders and occupying unaccom-
panied personnel housing— 
"(1) is exempt from the requirement of subsection (c) to pay a 
rental rate or charge based on the reasonable value of the 
quarters and facilities provided; and 
"(2) shall pay such lesser rate or charge as the Secretary of 
Defense establishes by regulation.". 
SEC. 810. FOOD PROGRAMS 
10 USC 133 note. 
(a) FOOD COSTS FOR CERTAIN ENUSTED MEMBERS.—Section 1011 of 
title 37, United States Code, is amended by adding at the end thereof 
the following new subsection: 
"(c) Spouses and dependent children of enlisted members in pay 
grades E-1, E-2, E-3, and E-4 may not be charged for meals sold at 
messes in excess of a level sufficient to cover food costs.". 
(b) REPORT ON ISSUANCE OF FOOD STAMPS COUPONS TO OVERSEAS 
HOUSEHOLDS OF MEMBERS STATIONED OUTSIDE THE UNITED STATES.— 
(1) The Secretary of Defense shall submit to Congress a report on the 
feasibility of having the Department issue food stamp coupons to 
overseas households of members stationed outside the United States. 
(2) The report shall include— 
(A) an estimate of the cost of providing the coupons; and 
(B) legislative and administrative recommendations for 
providing for the issuance of the coupons. 
(3) The report shall be submitted not later than December 31, 
1985. 
SEC. 811. REPORTING OF CHILD ABUSE 
10 USC 133 note. 
(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.—For purposes of this section the term "child 
abuse and neglect" shall have the same meaning as provided in 
section 3(1) of the Child Abuse Prevention and Treatment Act (42 
U.S.C. 5102). 
98 Stat. 1752. 
SEC. 812. MISCELLANEOUS REPORTING REQUIREMENTS 
10 USC 133 note. 
(a) HOUSING AVAILABILITY.—(1) The Secretary of Defense shall 
Report. 
submit to Congress a report on the availability and affordability of 
off-base housing for members of the Armed Forces and their 
families. 
(2) The report shall— 
(A) examine the availability of affordable housing for each 
pay grade and for all geographic areas within the United States 
and for appropriate overseas locations; and 
99 STAT. 682 
PUBLIC LAW 99-145—NOV. 8, 1985 
Report. 
Children 
and youth. 
Education. 
10 use 133 note. 
Defense 
Procurement 
Improvement 
Act of 1985. 
10 use 2301 
note. 
(B) examine the relocation assistance provided by the Depart-
ment of Defense incident to a permanent change of station by a 
member of the Armed Forces in locating housing at the mem-
ber's new duty station and in disposing of housing at the 
member's old duty station. 
(3) The report shall be submitted within one year after the date of 
the enactment of this Act. 
(b) NEED FOR ASSISTANCE TO DEPENDENTS ENTERING NEW SECOND-
ARY SCHOOLS.—The Secretary of Defense shall submit to Congress a 
report recommending administrative and legislative action to assist 
families of members of the Armed Forces making a permanent 
change of station so that a dependent child who transfers between 
secondary schools with different graduation requirements is not 
subjected to unnecessary disruptions in education or inequitable, 
unduly burdensome, or duplicative education requirements. Such 
report shall be submitted within one year after the date of the 
enactment of this Act. 
SEC. 813. EFFECTIVE DATE 
This title shall take effect on October 1,1985. 
TITLE 
IX—PROCUREMENT 
POLICY 
REFORM 
AND 
OTHER 
PROCUREMENT 
MATTERS 
SEC. 901. SHORT TITLE 
This title may be cited as the "Defense Procurement Improvement 
Act of 1985". 
PART A—PROGRAM MANAGEMENT MATTERS 
SEC. 911. REGULATIONS RELATING TO ALLOWABLE COSTS 
(a) REGULATION OF ALLOWABLE COSTS PAYABLE TO DEFENSE CON-
TRACTORS.—(1) Chapter 137 of title 10, United States Code, is 
amended by adding at the end thereof the following new section: 
10 use 2324. 
"§ 2324. Allowable costs under defense contracts 
"(a)(1) The Secretary of Defense shall require that a covered 
contract provide that if the contractor submits to the Department of 
Defense a proposal for settlement of indirect costs incurred by the 
contractor for any period after such costs have been accrued and if 
that proposal includes the submission of a cost which is unallowable 
because the cost violates a cost principle in the Federal Acquisition 
Regulation or the Department of Defense Supplement to the Federal 
Acquisition Regulation, the cost shall be disallowed. 
Penalties. 
"(2) If the Secretary determines by clear and convincing evidence 
that a cost submitted by a contractor in its proposal for settlement is 
unallowable under paragraph (1), the Secretary shall assess a 
penalty against the contractor in an amount equal to— 
"(A) the amount of the disallowed costs; plus 
"(B) interest (to be computed based on regulations issued by 
the Secretary) to compensate the United States for the use of 
any funds which a contractor has been paid in excess of the 
amount to which the contractor was entitled. 
Penalties. 
"(b) If the Secretary determines that a proposal for settlement of 
indirect costs submitted by a contractor includes a cost determined 
to be unallowable in the case of such contractor before the submis-
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 683 
sion of such proposal, the Secretary shall assess a penalty against 
the contractor, in addition to the penalty assessed under subsection 
(a), in an amount equal to two times the amount of such cost. 
"(c) An action of tne Secretary under subsection (a) or (b)— 
"(1) shall be considered a final decision for the purposes of 
section 6 of the Contract Disputes Act of 1978 (41 U.S.C. 605); 
and 
"(2) is appealable in the manner provided in section 7 of such 
Act (41 U.S.C. 606). 
"(d) If any penalty is assessed under subsection (a) or (b) with 
Penalties. 
respect to a proposal for settlement of indirect costs, the Secretary 
may assess an additional penalty of not more than $10,000 per 
proposal. 
"(eXD The following costs are not allowable under a covered 
contract: 
"(A) Costs of entertainment, including amusement, diversion, 
and social activities and any costs directly associated with such 
costs (such as tickets to shows or sports events, meals, lodging, 
rentals, transportation, and gratuities). 
"(B) Costs incurred to influence (directly or indirectly) legisla-
tive action on any matter pending before Congress or a State 
legislature. 
"(C) Costs incurred in defense of any civil or criminal fraud 
proceeding or similar proceeding (including filing of any false 
certification) brought by the United States where the contractor 
is found liable or has pleaded nolo contendere to a charge of 
fraud or similar proceeding (including filing of a 
false 
certification). 
"(D) Payments of fines and penalties resulting from violations 
of, or failure to comply with, Federal, State, local, or foreign 
laws and regulations, except when incurred as a result of 
compliance with specific terms and conditions of the contract or 
specific written instructions from the contracting 
officer 
authorizing in advance such payments in accordance with 
applicable regulations of the Secretary of Defense. 
"(E) Costs of membership in any social, dining, or country 
club or organization. 
"(F) Costs of alcoholic bever£^es. 
"(G) Contributions or donations, regardless of the recipient. 
"(H) Closts of advertising designed to promote the contractor 
or its products. 
"(I) Costs of promotional items and memorabilia, including 
models, gifts, and souvenirs. 
"(J) Costs for travel by commercial aircraft which exceed the 
amount of the standard commercial fare. 
"(2) The Secretary shall prescribe regulations to implement this 
Regulations. 
section. Such regulations may establish appropriate definitions, 
exclusions, limitations, and qualifications. 
"(fXD The Secretary shall prescribe proposed regulations to 
Regulations. 
amend those provisions of the Department of Defense Supplement to 
the Federal Acquisition Regulation dealing with the allowability of 
contractor costs. The amendments shall define in detail and in 
specific terms those costs which are unallowable, in whole or in part, 
under covered contracts. These regulations shall, at a minimum, 
clarify the cost principles applicable to contractor costs of the 
following: 
"(A) Air shows. 
99 STAT. 684 
PUBLIC LAW 99-145—NOV. 8, 1985 
"(B) Membership in civic, community, and 
professional 
organizations. 
"(C) Recruitment. 
"(D) Employee morale and welfare. 
"(E) Actions to influence (directly or indirectly) executive 
branch action on regulatory and contract matters (other than 
costs incurred in regard to contract proposals pursuant to solic-
ited or unsolicited bids). 
"(F) Community relations. 
"(G) Dining facilities. 
"(H) Professional and consulting services, including legal 
services. 
"(I) Compensation. 
"(J) Selling and marketing. 
"(K) Travel. 
"(L) Public relations. 
"(M) Hotel and meal expenses. 
"(N) Expense of corporate aircraft. 
"(O) Company-furnished automobiles. 
"(P) Advertising. 
"(2) The regulations shall require that a contracting officer not 
resolve any questioned costs until he has obtained— 
"(A) adequate documentation with respect to such costs; and 
"(B) the opinion of the defense contract auditor on the allow-
ability of such costs. 
"(3) The regulations shall provide that, to the maximum extent 
practicable, the defense contract auditor be present at any negotia-
tion or meeting with the contractor regarding a determination of 
the allowability of indirect costs of the contractor. 
"(4) The regulations shall require that all categories of costs 
designated in the report of the defense contract auditor as ques-
tioned with respect to a proposal for settlement be resolved in such a 
manner that the amount of the individual questioned costs that are 
paid will be reflected in the settlement. 
"(g) The regulations of the Secretary required to be prescribed 
under subsections (e) and (f)(1) shall require, to the maximum extent 
practicable, that such regulations apply to all subcontractors of a 
covered contract. 
"(h)(1) A proposal for settlement of indirect costs applicable to a 
covered contract shall include a certification by an official of the 
contractor that, to the best of the certifying official's knowledge and 
belief, all indirect costs included in the proposal are allowable. Any 
such certification shall be in a form prescribed by the Secretary. 
"(2) The Secretary of Defense or the Secretary of the military 
department concerned may waive the requirement for certification 
under paragraph (1) in the case of any contract if the Secretary— 
"(A) determines in such case that it would be in the interest of 
the United States to waive such certification; and 
"(B) states in writing the reasons for that determination and 
makes such determination available to the public. 
"(i) The submission to the Department of Defense of a proposal for 
settlement of costs for any period after such costs have been accrued 
that includes a cost that is expressly specified by statute or regula-
tion as being unallowable, with the knowledge that such cost is 
unallowable, shall be subject to the provisions of section 287 of title 
18 and section 3729 of title 31. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 685 
"(j) In this section, 'covered contract' means a contract for an 
amount more than $100,000 entered into by the Department of 
Defense other than a fixed-price contract without cost incentives.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following new item: 
"2324. Allowable costs under defense contracts.". 
(b) REGULATIONS.—(1) Not later than 150 days after the date of the 
enactment of this Act, the Secretary of Defense shall prescribe the 
regulations required by subsections (e) and (f) of section 2324 of title 
10, United States Code, as added by subsection (a). Such regulations 
shall be published in accordance with section 22 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 418b). 
(2) The Secretary shall review such regulations at least once every 
five years. The results of each such review shall be made public. 
(c) EFFECTIVE DATE.—Section 2324 of title 10, United States Code, 
as added by subsection (a), shall apply only to contracts for which 
solicitations are issued on or after the date on which such regula-
tions are prescribed. 
SEC. 
912. MULTIPLE SOURCES FOR MAJOR DEFENSE ACQUISITION 
PROGRAMS 
(a) IN GENERAL.—(1) Chapter 137 of title 10, United States Code, is 
amended by inserting after section 2305 the following new section: 
"§ 2305a. Major programs: competitive alternative sources 
"(aXD The Secretary of Defense may not begin full-scale develop-
ment under a major program until— 
"(A) the Secretary prepares an acquisition strategy for the 
program; and 
"(B) the Secretary submits to the Committees on Armed 
Services of the Senate and House of Representatives a report 
describing the acquisition strategy for that program. 
"(2) The report required by paragraph dXB) shall be submitted 
not later than the date of the submission of the President's budget to 
Congress for the fiscal year for which the initial request is made for 
appropriations for full-scale development of the program. 
"(3) If the Secretary proposes to revise an acquisition strategy 
prepared under paragraph (1) after the report on that strategy is 
submitted under that paragraph, the Secretary shall submit to the 
committees a report describing the proposed revision. Such a revi-
sion may not be implemented until 60 days after the date on which 
the report on the revision is received by those committees. 
"(4) The Secretary shall ensure that contracts for each major 
program are awarded in accordance with the acquisition strategy for 
such program. 
"(bXD The acquisition strategy prepared under subsection (a) for a 
major program shall provide that there will be competitive alter-
native sources available for the system (and each major subsystem) 
under the program throughout the period from the beginning of full-
scale development through the end of production. 
"(2) In carrying out this subsection, the Secretary may provide 
that the requirement for competitive alternative sources for a 
system or subsystem is satisfied even though the sources for that 
system or subsystem do not develop or produce identical systems if 
the systems developed or produced serve similar functions and 
compete effectively with each other. 
10 u s e 2324 
note. 
98 Stat. 3076. 
Public 
information. 
10 u s e 2324 
note. 
10 u s e 2305a. 
Reports. 
99 STAT. 686 
PUBLIC LAW 99-145—NOV. 8, 1985 
Defense and 
national 
security. 
Report. 
10 u s e 139a. 
Research and 
development. 
10 u s e 139a. 
10 u s e 2305a 
note. 
"(cXD In preparing an acquisition strategy for a major program, 
the Secretary may waive subsection (b) with respect to full-scale 
development of that program if the Secretary determines that the 
application of that subsection to full-scale development of that 
program— 
"(A) would not materially reduce the technological risks asso-
ciated with the program; 
"(B) would not likely result in an improvement in design 
commensurate with the additional cost; 
"(C) would result in unacceptable delays in fulfilling the 
needs of the Department of Defense; or 
"(D) would be adverse to the national security interests of the 
United States. 
"(2) In preparing an acquisition strategy for a major program, the 
Secretary may waive the requirement of subsection (b) with respect 
to production under the program if the Secretary determines that 
the application of that subsection to production under 
the 
program— 
"(A) would increase the total cost for the program; 
"(B) would result in unacceptable delays in fulfilling the 
needs of the Department of Defense; or 
"(C) would be adverse to the national security interests of the 
United States. 
"(3) If the Secretary grants a waiver under paragraph (1) or (2), 
the report submitted under subsection (a) with respect to that 
program— 
"(A) shall include notice that the waiver has been made; and 
"(B) shall set forth the reasons for the waiver, together with 
supporting documentation of comparative cost and schedule 
estimates and other background material. 
"(4) The Secretary shall separately exercise the authority under 
paragraphs (1) and (2) for each major defense acquisition program. 
"(d) In this section: 
"(1) 'Major program' means a major defense acquisition pro-
gram, as such term is defined in section 139a(a) of this title. 
"(2) 'Major subsystem', with respect to a major program, 
means a subsystem of the system developed under the program 
that is purchased directly by the United States and for which— 
"(A) the amount for research, development, test and 
evaluation is 10 percent or more of the amount specified in 
section 139a(a)(lXB) of this title as the research, develop-
ment, test and evaluation funding criterion for identifica-
tion of a major defense acquisition program; or 
"(B) the amount for production is 10 percent or more of 
the amount specified in section 139a(aXl)(B) of this title as 
the production funding criterion for identification of a 
major defense acquisition program.". 
(2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2305 the 
following new item: 
"2305a. Major programs: competitive alternative sources." 
(b) EFFECTIVE DATE.—Section 2305a of title 10, United States Code, 
as added by subsection (a), shall apply with respect to major defense 
acquisition programs for which funds for full-scale development are 
first requested for a fiscal year after fiscal year 1986. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 687 
SEC. 913. MINIMUM PERCENTAGE OF COMPETITIVE PROCUREMENTS 
10 USC 2301 
(a) ANNUAL GOAL.—The Secretary of Defense shall establish for 
each fiscal year a goal for the percentage of defense procurements to 
be made during that year (expressed in total dollar value of con-
tracts entered into) that are to be competitive procurements. 
(b) ANNUAL REPORT.—(1) The Secretary shall submit to Congress a 
report each year on the goal for the next fiscal year. Such report 
shall propose means for promoting and expanding competition in 
• 
" ^'^' ' 
Department of Defense procurement and shall summarize the 
accomplishments in meeting the established goals for the prior fiscal 
year. 
(2) The report shall be submitted not later than April 1 of each 
year with respect to the next fiscal year. 
(c) DEFINITION.—For the purposes of this section, the term 
"competitive procurements" means procurements made by the 
Department of Defense through the use of competitive procedures, 
as defined in section 2304 of title 10, United States Code. 
98 Stat. 1187. 
SEC. 9
1
4
. 
REGULATIONS 
TO 
CONTROL 
PRICES 
THAT 
MAY 
BE 
PAID 
FOR 
SPARE 
PARTS 
(a) IDENTIFICATION OF MANAGEMENT PROBLEMS.—The Congress 
determines that in the acquisition of spare parts the Department of 
Defense has in some instances paid unreasonably high prices due to 
the following management problems: 
(1) Some parts have been built to overly detailed specifica-
tions. 
(2) Some parts have been designed and fabricated in such a 
manner that excessive engineering and manufacturing steps 
have been involved resulting in a price in excess of the intrinsic 
value of the part. 
(3) Some parts have been purchased in very small, and thus 
highly uneconomic, quantities. 
(4) Some parts have had inappropriate amounts of corporate 
overhead assigned to them, resulting in a price in excess of the 
intrinsic value of the part. 
(5) Some parts have not been purchased directly from the 
manufacturer, and thus the Government has unnecessarily paid 
an additional profit to the seller. 
(6) Some parts have not been purchased through a competi-
tive process. 
(7) Some parts have been sold with unreasonably high profits 
included in the price. 
(b) REPORT.—(1) The Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of Rep-
resentatives a report— 
(A) describing the specific actions taken by the Department of 
Defense to address the management problems identified in 
subsection (a); and 
(B) evaluating such actions to determine whether the 
actions have been successful in remedying those management 
problems. 
(2) The report shall be submitted not later than January 31, 1986. 
(c) PROPOSALS FOR ADDITIONAL ADMINISTRATIVE OR LEGISLATIVE 
REMEDIES.—If the Secretary of Defense concludes that the manage-
ment problems identified in subsection (a) have not been success-
fully remedied by actions of the Department of Defense, the 
Secretary— 
99 STAT. 688 
PUBLIC LAW 99-145—NOV. 8, 1985 
(1) shall issue proposed regulations to limit the prices that 
may be charged by defense contractors for spare parts; and 
(2) shall, if the Secretary determines that legislation is nec-
essary to remedy any of such problems, submit to Congress 
proposed legislation to remedy those problems. 
(d) CONSTRUCTION OF SECTION.—This section does not supersede 
the requirements of section 1245 of the Department of Defense 
98 Stat. 2609. 
Authorization Act, 1985 (Public Law 98-525), the provisions of which 
the Secretary of Defense has failed to comply with as of July 25, 
1985. 
10 use 139 note. 
SEC. 915. SHOULD-COST ANALYSES 
(a) REPORT ON ANNUAL PLAN.—The Secretary of Defense shall 
submit to Congress an annual report setting forth the Secretary's 
plan for the performance during the next fiscal year of cost analyses 
for major defense acquisition programs for the purpose of determin-
ing how much the production of covered systems under such pro-
grams should cost. The report shall describe— 
(1) which covered systems the Secretary plans to apply such 
an analysis to; 
(2) which covered systems the Secretary does not plan to 
apply such an analysis to and, in each such case, the reasons for 
not applying such an analysis; and 
(3) which systems were determined not to be covered systems 
under a major defense acquisition program and the reasons for 
that determination. 
(b) COVERED SYSTEMS.—For the purposes of subsection (a), a system 
under a major defense acquisition program shall be considered to be 
a covered system if^ 
(1) a production contract for the system is to be awarded 
during the year following the next fiscal year using procedures 
other than full and open competition; 
(2) initial production of the system has already taken place; 
(3) the current plans for the Department of Defense include 
production of substantial quantities of identical or similar items 
in fiscal years beyond the next fiscal year; 
(4) the work to be performed under the contract is sufficiently 
defined to permit an effective analysis of what production of the 
system by the contractor should cost; and 
(5) major changes in the program are unlikely. 
(c) SUBMITTAL OF REPORT.—The report required by subsection (a) 
shall be submitted to the Committees on Armed Services of the 
Senate and the House of Representatives not later than the date on 
which the budget for the next fiscal year is submitted each year. 
(d) DEFINITION.—The term "major defense acquisition program" 
has the meaning given such term in section 139a(aXl) of title 10, 
United States Code. 
(e) EFFECTIVE DATE.—This section shall apply to covered systems 
for which initial production funds are first appropriated for a fiscal 
year after fiscal year 1986. 
10 use 2307 
SEC. 916. LIMITATIONS ON PROGRESS PAYMENTS 
"°*®" 
(a) IN GENERAL.—The Secretary of Defense shall ensure that any 
payment for work in progress (including materials, labor, and other 
items) under a defense contract that provides for such payments is 
commensurate with the work, which meets standards of quality 
established under the contract, that has been accomplished. 
98 Stat. 1192. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 689 
(b) REQUIREMENTS WITH RESPECT TO UNDEFINITIZED CONTRACTS.— 
The Secretary shall ensure that progress payments referred to in 
subsection (a) are not made for more than 80 percent of the work 
accomplished under a defense contract so long as the Secretary has 
not made the contractual terms, specifications, and price definite. 
(c) WAIVER OF SMALL PURCHASES.—This section does not apply to 
contracts for amounts less than the threshold for small purchases 
applicable under section 2304(g)(2) of title 10, United States Code. 
98 Stat. 1187. 
(d) EFFECTIVE DATE.—This section shall apply only to contracts for 
which solicitations are issued on or after 150 days after the enact-
ment of this Act. 
SEC. 917. COST AND PRICE MANAGEMENT IN DEFENSE PROCUREMENT 
(a) IN GENERAL.—Chapter 141 of title 10, United States Code, is 
amended by adding at the end thereof the following new section: 
"§ 2406. Cost and price management 
10 USC 2406. 
"(a) In this section: 
"(1) 'Covered contract' means a contract that is awarded by a 
defense agency using procedures as defined in chapter 137 of 
this title and that is subject to the provisions of section 2306(f) of 
lO use 2301 
this title, including contracts for full-scale engineering, develop- ai%^;^, 
ment, or production. 
"(2) 'Defense agency' means the Department of Defense, the 
Department of the Army, the Department of the Navy, the 
Department of the Air Force, and the Defense Logistics Agency. 
"(b)(1) A defense agency that is responsible for the acquisition of 
property (including major manufactured end items) or services 
under a covered contract shall cause to be* recorded the contractor's 
proposed and negotiated cost and pricing data acquired by the 
agency into appropriate categories. Such categories shall include 
labor costs, material costs, subcontract costs, overhead costs, general 
and administrative costs, fee or profit, recurring costs, and non-
recurring costs. 
"(2)(A) A defense agency that is responsible for the acquisition of 
major manufactured end items under a covered contract shall cause 
to be recorded the proposed and negotiated bills of labor for labor 
use by the prime contractor and each associate contractor in manu-
facturing the item and for labor used by each such contractor in 
performing routine testing relating to the item. The bill of labor 
relating to the labor used by any such contractor shall reflect such 
contractor's computation of the work required in manufacturing 
parts and subassemblies for the end item and in performing routine 
testing of such parts and subassemblies. 
"(B) Each contractor preparing a bill of labor referred to in 
subparagraph (A) shall specify in the bill of labor the current 
industrial engineering standard hours of work content (also known 
as 'should-take times') for the work included in a component of the 
bill of labor and for the total work included in the bill of labor. The 
contractor shall base the standard hours of work content specified in 
the bill of labor on the 'fair day's work' concept, as such term is 
understood in competitive commercial manufacturing industries in 
the United States. The contractor's standard hours of work content 
included in the bill of labor may not vary from time standards 
derived from commercially available predetermined time standard 
systems widely used in the United States, as determined by the 
defense agency, subject to verification by audit. 
99 STAT. 690 
PUBLIC LAW 99-145—NOV. 8, 1985 
"(C) The head of a defense agency acquiring a bill of labor referred 
to in subparagraph (A) shall provide for the maintenance of the 
information relating to standard hours of work content included 
under subparagraph (B) and shall review such information to deter-
mine changes in measured work content as work progresses under 
the contract to which the bill of labor relates. 
"(3) A defense agency that is responsible for the acquisition of 
major manufactured end items under a covered contract shall cause 
to be recorded the proposed and negotiated bills of material used by 
the prime contractor and each associate contractor under the con-
tract in manufacturing the item and of material used by each such 
contractor in performing routine testing relating to the item. The 
bill of material used by any such contractor shall reflect such 
contractor's computation of the material required for manufactur-
ing parts and subassemblies for the end item and for routine testing 
of such parts and subassemblies. The costs set out in the bill of 
material shall be expressed in current dollars and shall be main-
tained and received in a manner similar to the manner provided for 
bills of labor in paragraph (2XC). 
"(4) A defense agency that is responsible for the acquisition of 
property (including major manufactured end items) or services 
under a covered contract shall cause to be recorded incurred costs 
under the contract in the same manner as the defense agency 
categorizes and records proposed and negotiated costs, including 
grouping the costs as provided under paragraph (1). 
"(cXD Nothing in this section shall prohibit a contractor from 
submitting a request for payment or reimbursement for any bill of 
labor or any bill of material developed pursuant to an approved 
system of cost principles and procedures. 
"(2) Nothing in this section shall require the submission of the 
information to be submitted under this section if the contractor does 
not maintain such information on the date of the enactment of this 
section.". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by adding at the end thereof the 
following new item: 
"2406. Cost and price management.". 
10 use 2304 
SEC. 918. CONTRACTED ADVISORY AND ASSISTANCE SERVICES 
(a) ACCOUNTING PROCEDURE.—(1) The Secretary of Defense shall 
require that there be established within each military department 
an accounting procedure to aid in the identification and control of 
expenditures for services identified as contracted advisory and 
assistance services. 
(2) Not later than six months after the date of the enactment of 
this Act, the Secretary shall submit to Congress a report describing 
the accounting procedure established in accordance with paragraph 
(1) and the implementation of that procedure in each military 
department. 
(b) REGULATIONS TO IDENTIFY CONTRACTED ADVISORY AND ASSIST-
ANCE SERVICES.—(1) The Secretary shall prescribe regulations which 
specifically describe— 
(A) what services the Department of Defense considers to be 
contracted advisory and assistance services; and 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 691 
(B) of those services, which services are carried out in direct 
support of a weapon system and are essential to the develop-
ment, production, or maintenance of the system. 
(2) In prescribing regulations under paragraph (1), the Secretary 
shall consider the following areas: 
(A) Management and professional services. 
(B) Special studies and analyses. 
(C) Management and support services for research and devel-
opment activities. 
(D) Training. 
(E) Management review of program-funded organizations. 
(F) Public relations. 
(G) Other consulting services. 
(H) Engineering development and operational systems devel-
opment related to research and development activities and 
production activities. 
(I) Technical assistance. 
(J) Technical representation. 
(K) Quality control, testing, and inspection services. 
(L) Specialized medical services. 
(M) Architectural and engineering services, other than in 
connection with construction. 
(N) Technical and management assistance for weapons sys-
tems management and review. 
(3) Regulations required by paragraph (1) shall be prescribed not 
later than six months after the date of the enactment of this Act. 
(c) CONGRESSIONAL BUDGET DOCUMENTS.—Budget documents pre-
sented to Congress in support of the annual budget for the Depart-
ment of Defense— 
(1) shall identify the total amount requested for contracted 
advisory and assistance services (as defined under regulations 
prescribed under subsection (b)); 
(2) shall identify the amount requested for each category of 
such services established by regulations prescribed under 
subsection (b); and 
(3) within each such category, shall separately set forth 
amounts for such services described in subsection (bXlXB). 
SEC. 919. REVISION AND EXTENSION OF PROCUREMENT TECHNICAL 
ASSISTANCE COOPERATIVE AGREEMENT PROGRAM 
(a) PROGRAM REVISIONS.—Sections 2411 through 2414 of title 10, 
United States Code, are amended to read as follows: 
98 Stat. 2605, 
2606. 
"§ 2411. Definitions 
10 USC 2411. 
"In this chapter: 
"(1) 'Eligible entity' means— 
"(A) a State (as defined in section 6302(5) of title 31); 
"(B) a local government (as defined in section 6302(2) of 
title 31); and 
"(C) a private, nonprofit organization. 
"(2) 'Distressed entity means an eligible entity (within the 
meaning of paragraph (IXB)) that— 
"(A) has a per capita income of 80 percent or less of the 
State average; or 
"(B) has an unemployment rate one percent greater than 
the national average for the most recent 24-month period 
for which statistics are available. 
99 STAT. 692 
PUBLIC LAW 99-145—NOV. 8, 1985 
"(3) 'Secretary' means the Secretary of Defense acting 
through the Director of the Defense Logistics Agency. 
10 use 2412. 
"§ 2412. Purposes 
"The purposes of the program authorized by this chapter are— 
"(1) to increase assistance by the Department of Defense to 
eligible entities furnishing procurement technical assistance to 
business entities; and 
"(2) to assist eligible entities in the payment of the costs of 
establishing and carrying out new procurement technical assist-
ance programs and maintaining existing procurement technical 
assistance programs. 
10 use 2413. 
"§ 2413. Cooperative agreements 
"(a) The Secretary, in accordance with the provisions of this 
chapter, may enter into cooperative agreements with eligible enti-
ties to carry out the purposes of this chapter. 
"(b) Under any such cooperative agreement, the eligible entity 
shall agree to furnish procurement technical assistance to business 
entities and the Secretary shall agree to defray not more than one-
half of the eligible entity s cost of furnishing such assistance, except 
that in the case of an eligible entity that is a distressed entity, the 
Secretary may agree to ftirnish more than one-half, but not more 
than three-fourths, of such cost. 
"(c) In entering into cooperative agreements under subsection (a), 
the Secretary shall eissure that at least one procurement technical 
assistance program is carried out in each Department of Defense 
contract administration services region during each fiscal year. 
10 use 2414. 
"§ 2414. Limitation 
"The value of the assistance furnished by the Secretary to any 
eligible entity to carry out a procurement technical assistance pro-
gram under a cooperative agreement under this chapter during any 
fiscal year may not exceed $150,000.". 
98 Stat. 2606. 
(b) FUNDING.—Section 2415 of such title is amended— 
(1) in subsection (a)— 
(A) by striking out "fiscal year 1985 is 50 percent and 
during fiscal year 1986" in paragraph (2) and inserting in 
lieu thereof "fiscal years 1986 and 1987"; and 
(B) by adding at the end the following new paragraph: 
"(3) This subsection shall apply only to the first $3,000,000 appro-
priated to carry out this chapter in each of fiscal years 1986 and 
1987."; 
(2) by striking out "fiscal year 1986" in subsection (b) and 
inserting in lieu thereof "fiscal year 1987"; and 
(3) by adding at the end thereof the following new subsection: 
"(c) For any amount appropriated to carry out this chapter for 
fiscal year 1986 or 1987 in excess of $3,000,000, the Secretary shall 
allocate funds available for assistance under this chapter equally to 
each Defense Contract Administration Services region. If in any 
such fiscal year there is an insufficient number of satisfactory 
proposals in a region for cooperative agreements to allow effective 
use of the funds allocated to that region, the funds remaining with 
respect to that region shall be reallocated among the remaining 
regions.". 
(c) AUTHORIZATION OF APPROPRIATIONS.—(1) There are authorized 
to be appropriated $5,000,000 for fiscal year 1986 and $6,000,000 for 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 693 
fiscal year 1987 to be available for the purpose of furnishing assist-
ance to carry out procurement technical assistance programs under 
cooperative agreements entered into under chapter 142 of title 10, 
United States Code. 
(2) Amounts appropriated for fiscal years 1986 and 1987 for oper-
ation and maintenance for the Department of Defense are available 
to defray the expenses of administering the provisions of such 
chapter during each such fiscal year, including the expenses related 
to the employment of any additional personnel necessary to admin-
ister such provisions. 
(d) EFFECTIVE DATE.—The amendments made by subsections (a) 
and (b) shall take effect on October 1,1985. 
98 Stat. 2605. 
SEC. 921. 
PART B—PROCUREMENT PERSONNEL MATTERS 
POST-GOVERNMENT-SERVICE 
EMPLOYMENT BARS ON SENIOR 
DEFENSE OFFICIALS 
10 use 2411 
note. 
10 use 2397a 
note. 
Whoever being a Presidential appointee in Federal employment 
Penalties, 
acts as a primary government representative in the negotiation of a 
government contract or the settlement thereof with a defense con-
tractor shall not within two years after the termination of said 
activities with such contractor accept employment from that con-
tractor and upon a knowing violation of this provision the employee 
shall be punished, upon conviction, with a prison term of up to one 
year and a fine of up to $5,000 and said defense contractor shall 
forfeit up to $50,000 in liquidated damages to the Federal Govern-
ment which shall be provided for in the contract. The Secretary of Regulations. 
Defense shall implement this provision by appropriate regulations. 
SEC. 922. IMPROVED 
REPORTING 
AND DISCLOSURE 
FOR 
FORMER 
EMPLOYEES OF THE DEPARTMENT OF DEFENSE; PREVEN-
TION OF CONFLICTS OF INTEREST 
(a) REPORTING AND DISCLOSURE BY FORMER EMPLOYEES.—Sub-
section (a)(1) of section 2397 of title 10, United States Code, is 
amended— 
(1) by striking out "by negotiation"; and 
(2) by striking out "$10,000" and inserting in lieu thereof 
"$25,000". 
(b) PENALTIES.—Subsection (b)(2) of such section is amended to 
read as follows: 
"(2)(A) If a person to whom this subsection applies (i) was 
employed by, or served as a consultant or otherwise to, a defense 
contractor at any time during a year at an annual pay rate of at 
least $25,000 and the defense contractor was awarded contracts by 
the Department of Defense during the preceding year that totaled at 
least $10,000,000, and (ii) within the 2-year period ending on the day 
before the person began the employment or consulting relationship, 
the person served on active duty or was a civilian employee for the 
Department, the person shall file a report with the Secretary of 
Defense in such manner and form as the Secretary may prescribe. 
The person shall file the report not later than 90 days after the date 
on which the person began the employment or consulting 
relationship. 
"(B) The person shall file an additional report each time, during 
the 2-year period beginning on the date the active duty or civilian 
employment with the Department terminated, that the person's job 
with the defense contractor significantly changes or the person 
99 STAT. 694 
PUBLIC LAW 99-145—NOV. 8, 1985 
commences an emplojonent or consulting relationship with another 
defense contractor under the conditions described in the first sen-
tence. A person required to file an additional report under this 
subparagraph shall file the report within 30 days after the date of 
the change or the date the employment or consulting relationship 
commences, as the case may be.". 
(c) REPORTS.—Subsection (bX3) of such section is amended— 
(1) by striking out clause (D) and inserting in lieu thereof the 
following: 
"(D) A description of the duties and work performed or to be 
performed by the person for the defense contractor, and a 
description of any similar duties or work performed for which 
the person had at least partial responsibility as a civilian 
official or employee of the Department of Defense or a member 
of the armed forces during the 2-year period referred to in 
paragraph (2XAXii)."; 
(2) in clause (F)— 
(A) by striking out "brief; and 
(B) by striking out "3-year period before that duty or 
service ended" and inserting in lieu thereof "2-year period 
referred to in paragraph (2XAXii) and a description of the 
type of work performed and the extent to which such work 
was performed by the person for the defense contractor that 
has employed the person or h£is retained the person as a 
consultant"; and 
(3) by adding at the end thereof the following new clause: 
"(I) A statement describing any disqualification action taken 
by the person during the 2-year period referred to in paragraph 
(2XAXii) with respect to any involvement in a matter concerning 
the defense contractor.". 
(d) FORMER CONTRACTOR EMPLOYEES.—(1) Subsection (cXD of such 
section is amended— 
(A) by striking out "fiscal" each place it appears; and 
(B) in clause (B)— 
(i) by striking out "3-year" and inserting in lieu thereof 
"2-year"; and 
(ii) by striking out "$15,000" and inserting in lieu thereof 
"$25,000". 
(2) Subsection (cX2) of such section is amended— 
(A) by striking out clause (C) and inserting in lieu thereof the 
following: 
"(C) A description of the duties and work performed by the 
person with the Department and a description of any similar 
duties or work for which the person had at least partial respon-
sibility as an employee or consultant of the defense contractor 
during the 2-year period referred to in paragraph (IXB)."; and 
(B) by striking out clause (F) and inserting in lieu thereof the 
following: 
"(F) A description of the duties and work performed by the 
person for the defense contractor and a description of the type 
of work and the extent to which such work was performed by 
the person in connection with contracts of the defense contrac-
tor with the Department during the 2-year period referred to in 
paragraph (IXB).". 
(e) REPORTS NOT TO BE ON FISCAL YEAR BASIS.—Subsection (e) of 
such section is amended by striking out "fiscal". 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 695 
(0 ADMINISTRATIVE PENALTY.—Subsection (f) of section 2397 of 
such title is amended to read as follows: 
lo use 2397. 
"(f)(1) A person who fails to comply with the filing requirements of 
this section shall be liable to the United States for an administrative 
penalty in the amount of $10,000, or in such lesser amount as may be 
determined by the Secretary of Defense, considering all the relevant 
circumstances. 
"(2) The Secretary shall determine whether a person has failed to 
file a report required by this section and shall determine the amount 
of the penalty under paragraph (1). The Secretary shall make the 
determinations on the record after opportunity for an agency hear-
ing as provided in subchapter II of chapter 5 of title 5, United States 
Code. The determinations of the Secretary shall be subject to judicial 
5 USC 551 et seq. 
review under chapter 7 of such title.". 
5 USC 701 et seq. 
SEC. 923. REQUIREMENTS RELATING TO PRIVATE EMPLOYMENT CON-
TACTS BETWEEN CERTAIN 
DEPARTMENT OF DEFENSE 
PROCUREMENT OFFICIALS AND DEFENSE CONTRACTORS 
(a) IN GENERAL.—(1) Chapter 141 of title 10, United States Code, is 
amended by inserting after section 2397 the following new section: 
"§ 2397a. Requirements relating to private employment contacts 
10 USC 2397a. 
between certain Department of Defense procurement 
officials and defense contractors 
"(a) In this section: 
"(1) 'Contract' has the same meaning as provided in section 
2397(aXl) of this title. 
10 USC 2397. 
"(2) 'Covered defense official' means any individual who is 
serving— 
"(A) as a civilian officer or employee of the Department of 
Defense in a position for which the rate of pay is equal to or 
greater than the minimum rate of pay payable for grade 
GS-11 under the General Schedule; or 
5 USC 5332. 
"(B) on active duty in the armed forces in a pay grade of 
0-4 or higher. 
"(3) 'Defense contractor' has the same meaning as provided in 
section 2397(aX2) of this title. 
"(4) 'Designated agency ethics official' has the same meaning 
as the term 'designated agency official' in section 209(10) of the 
Ethics in Government Act of 1978 (92 Stat. 1850; 5 U.S.C. App.). 
"(5) 'Employment' means a relationship under which an 
individual furnishes services in return for any payment or other 
compensation paid directly or indirectly to the individual for 
the services. 
"(6) 'Procurement function' includes, with respect to a con-
tract, any function relating to— 
"(A) the negotiation, award, administration, or approval 
of the contract; 
"(B) the selection of a contractor; 
"(C) the approval of changes in the contract; 
"(D) quality assurance, operation and developmental test-
ing, the approval of payment, or auditing under the con-
tract; or 
"(E) the management of the procurement program. 
"(bXD If a covered defense official who has participated in the 
performance of a procurement function in connection with a con-
tract awarded by the Department of Defense contacts, or is con-
99 STAT. 696 
PUBLIC LAW 99-145—NOV. 8, 1985 
Report. 
Report. 
Report. 
Penalties. 
Report. 
Penalties. 
tacted by, the defense contractor to whom the contract was awarded 
(or an agent of such contractor) regarding future employment 
opportunities for the official with the defense contractor, the official 
(except as provided in paragraph (2)) shall— 
"(A) promptly report the contact to the official's supervisor 
and to the designated agency ethics official (or his designee) of 
the agency in which the covered defense official is employed; 
and 
"(B) for any period for which future employment opportuni-
ties for the covered defense official have not been rejected by 
either the covered defense official or the defense contractor, 
disqualify himself from all participation in the performance of 
procurement functions relating to contracts of the defense 
contractor. 
"(2) A covered defense official is not required to report the first 
contact with a defense contractor under paragraph (IXA) or to 
disqualify himself under paragraph (IXB) if the defense official 
terminates the contact immediately. However, if an additional con-
tact of the same or a similar nature is made by or with the defense 
contractor, the covered defense official shall report (as provided in 
paragraph (1)) the contact and all contacts of the same or a similar 
nature made by or with the defense contractor during the 90-day 
period ending on the date the additional contact is made. 
"(c) A report required by subsection (bXD shall include— 
"(1) the date of each contact covered by the report; and 
"(2) a brief description of the substance of the contact. 
"(dXlXA) If the Secretary of Defense determines under paragraph 
(2) that a person has failed promptly to make a report required by 
subsection (bXlXA) or (bX2) or has failed to disqualify himself in any 
case in which he is required to do so under subsection (bXlXB)— 
"(i) the person may not accept or continue employment with 
the defense contractor during the 10-year period beginning with 
the date of separation from Government service; and 
"(ii) the Secretary may impose on the person an administra-
tive penalty in the amount of $10,000, or in such lesser amount 
as may be prescribed by the Secretary, taking into consideration 
all the circumstances. 
"(B) An individual who accepts or continues employment prohib-
ited by subparagraph (AXi) shall be liable to the United States for an 
administrative penalty as provided in subparagraph (AXii). Such 
penalty may be in addition to any penalty previously imposed on the 
individual under subparagraph (AXii) for failure promptly to make a 
report relating to the defense contractor by whom the individual is 
employed as required by subsection (bXlXA) or (bX2). 
"(C) The Secretary of Defense may take action against an individ-
ual under this paragraph before, on, or after the date on which the 
individual's employment with the Government is terminated. 
"(2XA) The Secretary of Defense shall determine— 
"(i) whether an individual has failed promptly to make a 
report required by subsection ObXlXA) or (bX2) or has failed to 
disqualify himself in any case in which he is required to do so 
under subsection (b)(lXB) and whether to impose a penalty 
under paragraph (IXAXii) and the amount of such penalty; and 
"(ii) whether an individual is liable to the United States for 
an administrative penalty under paragraph (IXB) and the 
amount of such penalty. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 697 
There shall be a rebuttable presumption in favor of a covered 
defense official that failure to report a contact with a defense 
contractor or failure to disqualify himself from participation in the 
performance of certain procurement functions is not a violation of 
subsection (bXlXA) or (bX2) or subsection (bXlXB), as the case may 
be, if the defense official has received an opinion in writing from the 
designated agency ethics official under subsection (e) stating that a 
report or disqualification by the official was not necessary. 
"(B) Determinations of the Secretary under subparagraph (A) 
shall be made on the record after opportunity for an agency hearing 
as provided in subchapter II of chapter 5 of title 5. The determina-
tions of the Secretary shall be subject to judicial review under 
chapter 7 of such title. 
"(e) If a designated agency ethics official or his designee receives a 
report required by subsection (b) or a request for advice from a 
covered defense official relating to a contact described in such 
subsection, the designated agency ethics official or his designee may 
issue a written opinion regarding the necessity of a covered defense 
official to file a report or disqualify himself from participation in 
certain procurement functions, as the case may be. 
"(f) A covered defense official should request the advice of his 
supervisor and the appropriate designated agency ethics official (or 
his designee) on matters to which this section applies.". 
(2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2397 the 
following new item: 
"2397a. Requirements relating to private employment contacts between certain 
Department of Defense procurement officials and defense contractors.". 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
shall take effect with respect to contacts (referred to in section 2397a 
of title 10, United Stat^ Code, as added by subsection (a) of this 
section) made on or after the date of enactment of this Act. 
SEC. 
9
2
4
. MANAGEMENT 
OF 
DEPARTMENT 
OF 
DEFENSE 
PROCUREMENT 
PERSONNEL 
(a) REQUIREMENTS FOR EDUCATION, TRAINING, AND EXPERIENCE.— 
(1) Part II of subtitle A of title 10, United States (Dode, is amended by 
adding at the end thereof the following new chapter: 
"CHAPTER 85—PROCUREMENT MANAGEMENT PERSONNEL 
"Sec 
"1621. Definitions. 
"1622. Education, training, and experience requirements: program managers. 
"1623. Education, training, and experience requirements: general and flag officers. 
"1624. Training program: quality assurance personnel. 
"§ 1621. Definitions 
"In this chapter: 
"(1) 'Program manager' means an officer or employee of the 
Department of Defense or member of the armed forces assigned 
by the Secretary of a military department to have overall 
responsibility for acquisitions under a major defense acquisition 
program. 
"(2) 'Procurement command' means the Army Materiel Com-
mand, the systems commands of the Navy, the Air Force 
Systems Command, or Air Force Logistics Command (or any 
successor organization of any such command). 
5 u s e 551 et seq. 
5 u s e 701 et seq. 
Report. 
10 u s e 2397a 
note. 
10 u s e 1621. 
99 STAT. 698 
10 use 139a. 
10 use 1622. 
Regulations. 
10 use 1623. 
Regulations. 
Supra. 
10 use 1624. 
PUBLIC LAW 99-145—NOV. 8, 1985 
"(3) 'Major defense acquisition program' has the meaning 
given that term in section 139a(a)(l) of this title. 
"§ 1622. Education, training, and experience requirements: pro-
gram managers 
"(a) The Secretary of each military department shall prescribe 
regulations establishing requirements for the education, training, 
and experience of any person assigned to duty as the program 
manager of a major defense acquisition program. Such regulations 
shall be subject to the approval of the Secretary of Defense. 
"(b) Regulations under subsection (a) shall require that, before 
being assigned to duty as a program manager, a person— 
"(1) must have attended the program management course at 
the Defense Systems Management College or a comparable 
program management course at another institution; and 
"(2) must have at least eight years experience in the acquisi-
tion, support, and maintenance of weapon systems, at least two 
of which were performed while assigned to a procurement 
command. 
"(c) A period of time spent pursuing a program of postgraduate 
education in a technical or management field or attending the 
course referred to in subsection (bXD may be counted toward the 
eight-year requirement prescribed in subsection (bX2). 
"(d) In assigning any person to duty as a program manager, the 
Secretary concerned may waive the requirements of subsection (b) 
in individual cases. The authority to waive such requirements 
may not be delegated. 
*'§ 1623. Education, training, and experience: flag and general 
officers 
"(a) The Secretary of each military department shall prescribe 
regulations establishing requirements for the education, training, 
and experience of general or flag officers £issigned to duty in a 
procurement command. Such regulations shall be subject to the 
approval of the Secretary of Defense. 
'(b) Regulations prescribed under subsection (a) shall require that 
in order for an officer of a military department to serve in a flag or 
general officer grade while assigned to duty in a procurement 
command, the officer must meet the education and experience 
requirements for program managers prescribed in section 1622(b) of 
this title. 
"(c) The Secretary concerned may waive the requirements for 
Eissignment to duty described in subsection (a). The authority to 
waive such requirements may not be delegated. 
"§ 1624. Training program: quality assurance personnel 
"The Secretary of Defense shall develop a training program for all 
personnel of the Department of Defense who are responsible for 
assuring quality in contractor facilities. The program shall be at 
least four weeks in duration. A person assigned to perform quality 
assurance duties in the Department of Defense shall, to the maxi-
mum extent practicable, attend such program during the first six 
months of the assignment to such duties.". 
(2) The tables of chapters at the beginning of subtitle A of title 10, 
United States Code, and at the beginning of part II of such subtitle 
are each amended by inserting after the item relating to chapter 83 
the following new item: 
"85. Procurement Management Personnel 
1621". 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 699 
(b) EFFECTIVE DATES.—(1) Section 1623 of title 10, United States 
10USC1623 
Code (as added by subsection (a)), shall take effect on July 1, 1990. 
^°^-
(2) Section 1624 of title 10, United States Code (as added by 
10USC1624 
subsection (a)), shall take effect on January 1, 1987. 
^°^-
(3) The regulations prescribed under subsection (a) of section 1622 
10 USC 1622 
of title 10, United States Code (as added by subsection (a)), shall 
^o*«-
provide that— 
(A) the requirement described in subsection (b)(1) of such 
section shall take effect on July 1, 1987; and 
(B) the requirement described in subsection (b)(2) of such 
section shall take effect on July 1, 1989. 
SEC. 92.5. ASSIGNMENT OF PRINCIPAL CONTRACTING OFFICERS 
10 USC 2304 
(a) DEVELOPMENTAL POLICY.—The Secretary of Defense shall 
develop a policy regarding the mobility and regular rotation of 
principal administrative and corporate administrative contracting 
officers in the Department of Defense. 
(b) REPORT.—The Secretary shall submit to the Committees on 
Armed Services of the Senate and House of Representatives not 
later than January 1, 1986, a report on such policy. 
(c) IMPLEMENTATION.—Such policy shall be implemented not later 
than April 1, 1986. 
PART C—FALSE CLAIMS, DEBARMENT, BURDEN OF PROOF, AND 
RELATED MATTERS 
SEC. 931. INCREASED PENALTIES FOR FALSE CLAIMS IN DEFENSE 
PROCUREMENT 
(a) CRIMINAL FINES.—Notwithstanding sections 287 and 3623 of 
18 USC 287 note. 
title 18, United States Code, the maximum fine that may be imposed 
98 Stat. 2008, 
under such section for making or presenting any claim upon or 3137. 
against the United States related to a contract with the Department 
of Defense, knowing such claim to be false, fictitious, or fraudulent, 
is $1,000,000. 
(b) CIVIL PENALTIES.—Notwithstanding section 3729 of title 31, 31 USC 3729 
United States Code, the amount of the liability under that section in 
^°^-
the case of a person who makes a false claim related to a contract 
with the Department of Defense shall be a civil penalty of $2,000, an 
amount equal to three times the amount of the damages the Govern-
ment sustains because of the act of the person, and costs of the civil 
action. 
(c) EFFECTIVE DATE.—Subsections (a) and (b) shall be applicable to 
18 USC 287 note, 
claims made or presented on or after the date of the enactment of 
this Act. 
SEC. 932. PROHIBITION O
N FELONS CONVICTED OF DEFENSE-CONTRACT- 
10 USC 2304 
RELATED FELONIES AND PENALTY O
N EMPLOYMENT OF note. 
SI CH PERSONS BY DEFENSE CONTRACTORS 
(a) PROHIBITION.—A person who is convicted of fraud or any other 
felony arising out of a contract with the Department of Defense 
shall be prohibited from working in a management or supervisory 
capacity on any defense contract for a period, as determined by the 
Secretary of Defense, of not less than one year from the date of the 
conviction. 
99 STAT. 700 
PUBLIC LAW 99-145—NOV. 8, 1985 
(b) PENALTY.—A defense contractor who knowingly employs a 
person under a prohibition under subsection (a) shall be fined not 
more than $500,000. 
(c) EFFECTIVE DATE.—Subsection (a) shall apply only with respect 
to crimes committed after the date of the enactment of this Act. 
10 use 2324 
SEC. 933. BURDEN OF PROOF IN GOVERNMENT CONTRACT DISPUTE 
note. 
RESOLUTION 
In a proceeding before the Armed Services Board of Contract 
Appeals, the United States Claims Court, or any other Federal court 
in which the reasonableness of indirect costs for which a contractor 
seeks reimbursement from the Department of Defense is in issue, 
the burden of proof shall be upon the contractor to establish that 
such costs are reasonable. 
SEC. 934. REIMBURSEMENT, INTEREST CHARGES, AND PENALTIES FOR 
OVERPAYMENTS 
10 use 2304 
(a) COST AND PRICING DATA.—If the United States makes an 
note. 
overpayment to a contractor under a contract with the Department 
98 Stat. 1192. 
of Defense subject to 2306(f) of title 10, United States Code, and the 
overpayment was due to the submission by the contractor of inac-
curate, incomplete, or noncurrent cost and pricing data, the contrac-
tor shall be liable to the United States— 
(1) for interest on the amount of such overpayment to be 
computed from the date the payment was made to the contrac-
tor to the date the Government is repaid by the contractor at 
the applicable rate prescribed by the Secretary of the Treasury 
pursuant to Public Law 92-41 (85 Stat. 97); and 
(2) if the submission of such inaccurate, incomplete, or 
noncurrent cost and pricing data was a knowing submission, an 
amount equal to the amount of the overpayment. 
Qy) DEFENSE PRODUCTION ACT AMENDMENT.—Section 719 of the 
Defense Production Act of 1950 (50 U.S.C. App. 2168) is amended by 
striking out the third sentence in subsection (hXD and inserting in 
lieu thereof the following: "Such interest shall be set at a rate 
established by the Secretary of the Treasury pursuant to Public Law 
92-41. Such interest shall accrue from the time such payments were 
made to the contractor or subcontractor to the time such price 
adjustment is effected.''. 
50 use app. 2168 
(c) EFFECTIVE DATE.—This section shall apply only to contracts 
note- 
entered into on or after the date of the enactment of this Act. 
SEC. 
9
3
5
. 
SUBPOENAS 
OF 
DEFENSE 
CONTRACTOR 
RECORDS 
Section 2313 of title 10, United States Code, is amended by adding 
at the end thereof the following new subsection: 
"(dXD The Director of the Defense Contract Audit Agency (or any 
successor agency) may require by subpoena the production of books, 
documents, papers, or records of a contractor, access to which is 
provided to the Secretary of Defense by subsection (a) or by section \ 
98 Stat. 1192. 
2306(f) of this title. 
"(2) Any such subpoena, in the case of contumacy or refusal to 
obey, shall be enforceable by order of an appropriate United States 
district court. 
"(3) The authority provided by paragraph (1) may not be 
redelegated. 
Report. 
"(4) The Director (or any successor official) shall submit an annual 
report to the Secretary of Defense on the exercise of such authority 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 701 
during the preceding year and the reasons why such authority was 
exercised in any instance. The Secretary shall forward a copy of 
each such report to the Committees on Armed Services of the Senate 
and House of Representatives.". 
PART D—REPORTS 
SEC. 951. REPORT ON PROHIBITION ON INCLUDING GENERAL AND AD-
MINISTRATIVE OVERHEAD EXPENSES IN THE COMPUTATION 
OF CONTRACTOR PROFITS 
(a) REPORT.—The Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of Rep-
resentatives a report in writing of his views regarding the desirabil-
ity and advisability of legislation or regulations that would prohibit, 
in the case of a contract awarded by the Department of Defense 
using procedures other than competitive procedures (as defined in 
section 2304(c) of title 10, United States Code), the inclusion of any 
98 Stat. 1187. 
actual or imputed general and administrative expenses of the con-
tractor in the total cost to which a percentage is applied in order to 
calculate anticipated profit to be earned by the contractor. 
(b) DESIRABIUTY OF WAIVER AUTHORITY.—If the Secretary states in 
the report that the Secretary favors such a prohibition, the Sec-
retary shall indicate in the report the desirability and advisability of 
including in any legislation or regulation imposing such a prohibi-
tion the authority for the Secretary to waive the prohibition in 
particular cases if necessary to avoid inequitable economic hardship 
or if necessary for other expressly stated reasons. 
(c) DEADUNE FOR REPORT.—The report shall be submitted not later 
than 60 days after the date of the enactment of this Act. 
SEC. 952. REPORT ON USE OF INDEPENDENT COST ESTIMATES FOR MAJOR 
10 USC 139c 
DEFENSE ACQUISITION PROGRAMS 
note. 
(a) REQUIREMENT FOR REPORT.—The Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and 
House of Representatives a report on the continued use of independ-
ent cost estimates in the planning, programing, budgeting, and 
selection process for major defense acquisition programs of the 
rfsogij^' 
Department of Defense. 
(b) MATTERS TO BE INCLUDED.—The report shall be a follow-on to 
the report required by section 1203(c) of the Department of Defense 
Authorization Act, 1984 (Public Law 98-94; 10 U.S.C. 1039 note), and 
10 use 139 note, 
shall include— 
(1) an overall assessment of the extent to which such esti-
mates were adopted by the Department of Defense in making 
decisions on the fiscal year 1987 budget and a general expla-
nation of why such estimates might have been modified or 
rejected; and 
(2) a statement as to whether adequate personnel and finan-
cial resources have been allocated at all levels of the Depart-
ment of Defense to those organizations or offices charged with 
developing or assessing independent estimates of the costs of 
major defense acquisition programs. 
(c) DEADUNE.—The report shall be submitted not later than 
April 1, 1986. 
99 STAT. 702 
PUBLIC LAW 99-145—NOV. 8, 1985 
SEC. 953. GAO STUDY OF FEASIBILITY OF CIVILIAN DEFENSE ACQUISI-
TION AGENCY 
(a) STUDY.—The Comptroller General shall carry out a study to 
review all available evidence, studies, reports, and analyses concern-
ing the organizational structure for defense procurement. 
(b) REPORT.—(1) After conducting such study, the Comptroller 
General shall submit to Congress a report concerning the advan-
tages and disadvantages of the establishment of an agency either 
within or outside the Department of Defense with the mission of 
coordinating, supervising, directing, and performing all procure-
ment functions for the Department of Defense. 
(2) The report required by paragraph (1) shall be submitted not 
later than one year after the date of the enactment of this Act. 
SEC. 954. REPORT ON SUSPENSION AND DEBARMENT OF DEFENSE 
CONTRACTORS 
(a) REQUIRED REPORT.—The Secretary of Defense shall submit to 
Congress a report on the policies prescribed and actions taken by the 
Secretary to implement the recommendations contained in the 
report of the Inspector General of the Department of Defense enti-
tled "Review of Suspension and Debarment Activities Within the 
Department of Defense", dated May 1984. 
(b) COOPERATION WITH THE OFFICE OP INSPECTOR GENERAL.—The 
report under subsection (a) shall be prepared in cooperation with the 
Office of the Inspector General of the Department of Defense. 
(c) DEADUNE FOR REPORT.—The report shall be submitted not later 
than 180 days after the date of the enactment of this Act. 
SEC. 955. REPORT ON THE USE OF COMPETITION UNDER SECTION 8(a) SET-
ASIDE PROGRAM 
(a) REQUIREMENT FOR REPORT.—The Secretary of Defense and the 
Administrator of the Small Business Administration shall each 
submit to the Committees on Armed Services and on Small Business 
of the Senate and House of Representatives a report on the feasibil-
ity of providing for the use of competitive procedures for contracts 
awarded by the Department of Defense under the set-aside program 
of the Small Business Administration under section 8(a) of the Small 
15 use 637. 
Business Act. 
Ot)) DEADLINE FOR REPORTS.—The reports required by subsection (a) 
shall be submitted not later than 180 days after the date of the 
enactment of this Act. 
SEC. 956. REPORT ON EFFORTS TO INCREASE DEFENSE CONTRACT 
AWARDS TO INDIAN-OWNED BUSINESSES 
(a) REPORT REQUIREMENT.—The Secretary of Defense shall submit 
to Congress a report on the efforts by the Department of Defense 
during fiscal years 1984 and 1985 to increase contract awards to 
Indian-owned businesses in accordance with the memorandum of 
understanding between the Department of Defense and the Small 
Business Administration of September 29, 1983. Such report shall 
include, to the maximum extent practicable, any data regarding the 
number and value of prime contracts awarded by the Department 
during such fiscal years to such businesses. 
(b) DEADUNE FOR REPORT.—Such report shall be submitted by 
March 31,1986. 
(c) DEFINITION.—For the purposes of this section, the term 
"Indian-owned business" means a business firm owned and con-
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 703 
trolled by American Indians, including a tribally owned for-profit 
entity. 
PART E—TECHNICAL AMENDMENTS TO FEDERAL PROCUREMENT LAW 
SEC. 9
6
1
. 
TECHNICAL 
CORRECTIONS 
TO 
FEDERAL 
PROCUREMENT 
LAW 
(a) SIMPUFICATION OF PROCEDURES FOR CERTAIN NONCOMPETITIVE 
PURCHASES.—(1) The second sentence of section 2304(f)(2) of title 10, 
United States Code, is amended to read as follows: "The justification 
98 Stat. 3086. 
and approval required by paragraph (1) is not required— 
"(A) when a statute expressly requires that the procurement 
be made from a specified source; 
"(B) when the agency's need is for a brand-name commercial 
item for authorized resale; 
"(C) in the case of a procurement permitted by subsection 
(cX7);or 
"(D) in the case of a procurement conducted under (i) the Act 
of June 25, 1938 (41 U.S.C. 46 et seq.), popularly referred to as 
the Wagner-O'Day Act, or (ii) section 8(a) of the Small Business 
Act (15 U.S.C. 637(a)).". 
(2) The second sentence of section 303(fK2) of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 253(fK2)) is 98 Stat. 3086. 
amended to read as follows: "The justification and approval required 
by paragraph (1) is not required— 
"(A) when a statute expressly requires that the procurement 
be made from a specified source; 
"(B) when the agency's need is for a brand-name commercial 
item for authorized resale; 
"(C) in the case of a procurement permitted by subsection 
(cX7); or 
"(D) in the case of a procurement conducted under (i) the Act 
of June 25, 1938 (41 U.S.C. 46 et seq.), popularly referred to as 
the Wagner-O'Day Act, or (ii) section 8(a) of the Small Business 
Act (15 U.S.C. 637(a)).". 
(b) NATO MUTUAL SUPPORT PROCUREMENT.—Section 23230t)) of 
chapter 138 of title 10, United States Code, is amended by striking 
out "section 2304(g)" and inserting in lieu thereof "section 2304(a)". 
(c) ADP PROCUREMENT.—Section 111 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 759) is amended by 98 Stat. 1182. 
adding at the end thereof the following new subsection: 
"(i) The justifications and approvals required by section 303(0(1) of 98 Stat. 1175. 
this Act shall apply in the case of any procurement under this ^^ USC 253. 
section for which the minimum needs are so restrictive that only 
one manufacturer is capable of satisfying such needs. Such procure-
ment includes either a sole source procurement or a procurement by 
specific make and model. Such justification and approval shall be 
required notwithstanding that more than one bid or offer is made or 
that the procurement obtains price competition and such procure-
ment shall be treated as a procurement using procedures other than 
competitive procedures for purposes of section 19(b) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 417(b)).". 
98 Stat. 1197. 
(d) 
CLARIFICATION OF REGULATIONS CONCERNING TECHNICAL 
DATA.—(1) Section 2320(a)(1) of title 10, United States Code, is 98 Stat. 2595. 
amended by striking out "the technical data" and inserting in lieu 
thereof "the item or process to which the technical data pertains". 
99 STAT. 704 
PUBLIC LAW 99-145—NOV. 8, 1985 
98 Stat. 3074. 
98 Stat. 3074. 
10 u s e 2304 
note. 
98 Stat. 1175. 
41 u s e 251 note. 
(2) Section 21(cXl) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 418a(cXl)) is amended by striking out "the technical data" 
and inserting in lieu thereof "the item or process to which the 
technical data pertains". 
(3) The second sentence of section 301(c) of the Small Business and 
Federal Procurement Competition Enhancement Act of 1984 (41 
U.S.C. 418a note) is amended by striking out "July 1, 1985" and 
inserting in lieu thereof "October 19,1985". 
(e) EFFECTIVE DATE.—The amendments made by subsections (a), 
0)), and (c) shall take effect £is if included in the enactment of the 
Competition in Contracting Act of 1984 (title VII of division B of 
Public Law 98-369). 
TITLE X—MATTERS RELATING TO ARMS 
CONTROL 
Union of Soviet 
Socialist 
Republics. 
President of U.S. 
President of U.S. 
SEC. 1001. POLICY ON COMPLIANCE WITH EXISTING STRATEGIC OFFEN-
SIVE ARMS AGREEMENTS 
(a) SENSE OF CONGRESS.—It is the sense of Congress that— 
(1) the United States should vigorously pursue with the Soviet 
Union the resolution of concerns of the United States over 
Soviet compliance with existing strategic arms control agree-
ments and should seek corrective actions through confidential 
diplomatic channels, including, if appropriate, the Standing 
Consultative Commission and the Nuclear and Space Arms 
negotiations; 
(2) the Soviet Union should take positive steps to resolve the 
compliance concerns of the United States about existing 
strategic offensive arms agreements in order to maintain the 
integrity of those agreements and to strengthen the positive 
environment necessary for the successful negotiation of a new 
strategic offensive arms agreement; 
(3) the United States should continue, through December 31, 
1986, to refrain from undercutting the provisions of existing 
strategic offensive arms agreements— 
(AXi) to the extent that the Soviet Union refrains from 
undercutting those provisions; and 
(ii) if the Soviet Union actively pursues arms reduction 
agreements in the Nuclear and Space Arms negotiations; or 
(B) until a new strategic offensive arms agreement 
between the United States and the Soviet Union is 
concluded; 
(4) the President— 
(A) should carefully consider the impact of any change in 
the current policy of the United States regarding existing 
strategic offensive arms agreements on the long-term 
security interests of the United States and its allies; and 
(B) should consult with Congress before making any 
change in that policy; and 
(5) any decision by the President to continue the existing 
United States no-undercut policy beyond December 31, 1986, 
should be a matter for consultation between the President and 
Congress and for subsequent review and debate by Congress. 
(b) REQUIREMENT FOR REPORT.—Not later than February 1, 1986, 
the President shall submit to Congress a report containing the 
following: 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 705 
(1) A range of projections and comparisons, on a year-by-year 
basis, of United States and Soviet strategic weapons dis-
mantlements that would be required over the next five years 
if the United States and the Soviet Union were to adhere to a 
policy of not undercutting existing strategic arms control 
agreements. 
(2) A range of projections and comparisons, on a year-by-year 
basis, of likely United States and Soviet strategic offensive force 
inventories over the next five years assuming a termination at 
the end of 1985 in the current no-undercut policy. 
(3) An assessment of the possible Soviet political, military, 
and negotiating responses to the termination of the United 
States no-undercut policy. 
(4) Recommendations regarding the future of United States 
interim restraint policy. 
(c) PROPOSAL OF MEASURES.—If the President finds and reports to 
Congress that— 
(1) the Soviet Union has violated the provisions of any 
strategic arms agreement; and 
(2) such violations impair or threaten the security of the 
United States, 
the President may propose to Congress such measures as he consid-
ers necessary to protect the security of the United States. 
(d) SCOPE OF POUCY.—Nothing in this section shall be construed— 
(1) to restrain or inhibit the constitutional powers of the 
President; 
(2) to endorse unilateral United States compliance with exist-
ing strategic arms agreements; 
(3) as prohibiting the United States from carrying out pro-
portionate responses to Soviet undercutting of strategic arms 
provisions; 
(4) as prohibiting or delaying the development, flight testing, 
or deployment of the small intercontinental ballistic missile 
(SICM) as authorized by law; or 
(5) as establishing a precedent to continue the no-undercut 
policy beyond December 31,1986. 
SEC. 1002. ANNUAL REPORT ON SOVIET COMPLIANCE WITH ARMS 
CONTROL COMMITMENTS 
Not later than December 1, 1985, and not later than December 1 
of each following year, the President shall submit to the Congress a 
report (in both classified and unclassified versions) containing, with 
respect to the compliance of the Soviet Union with its arms control 
commitments, the findings of the President and any additional 
information necessary to keep the Congress currently informed. 
SEC. 1003. STUDY OF ARMS CONTROL VERIFICATION CAPABILITIES 
(a) INTERAGENCY STUDY.—The President shall provide for an inter-
agency study with the purpose of determining possible avenues for 
cooperation between the United States and the Soviet Union in the 
development of capabilities not subject to national security restric-
tions for verification of compliance with arms control agreements. 
Areas of possible cooperation to be examined shall include— 
(1) limited exchanges of data and scientific personnel; and 
(2) the conduct of a joint technological effort in the area of 
seismic monitoring. 
Defense and 
national 
security. 
President of U.S. 
22 use 2592a. 
Union of Soviet 
Socialist 
Republics. 
President of U.S. 
99 STAT. 706 
PUBLIC LAW 99-145—NOV. 8, 1985 
(b) AGENCIES INCLUDED.—The President shall provide for partici-
pation in the interagency study under subsection (a) by— 
(1) the Secretary of State; 
(2) the Secretary of Defense; 
(3) the Secretary of Energy; 
(4) the Director of the Arms Control and Disarmament 
Agency; 
(5) the heads of appropriate intelligence agencies; 
(6) the Joint Chiefs of Staff; and 
(7) such other officers as the President may designate. 
(c) REPOBT.—(1) The President shall submit to Congress a report 
on the results of the interagency study. 
(2) The report shall be submitted in both a classified and unclassi-
fied version. 
(3) The report shall be submitted not later than May 1, 1986. 
SEC. 1004. SENSE OF CONGRESS RELATING TO UNITED STATES-SOVIET 
NEGOTIATIONS ON REDUCTION IN NUCLEAR ARMS 
It is the sense of the Congress— 
(1) that the President of the United States and the General 
Secretary of the Communist Party of the Union of Soviet So-
cialist Republics should be commended for their willingness to 
meet to discuss major issues in United States-Soviet relations; 
and 
(2) that following thorough preparation, such meetings should 
be used to work for the realization of mutual, equitable, and 
verifiable reductions in nuclear arms. 
SEC 1005. PILOT PROGRAM FOR EXCHANGE OF CERTAIN HIGH-RANKING 
MIUTARY AND CIVILIAN PERSONNEL WITH THE SOVIET 
UNION 
(a) SUBMISSION OF PLAN.—^The Secretary of Defense shall submit 
to the appropriate committees of Congress a plan for the establish-
ment and operation during fiscal year 1986 of a pilot program for 
the exchange of visits between— 
(1) high-ranking officers of the Armed Forces of the United 
States and high-ranking civilian officials of the Department of 
Defense; and 
(2) corresponding high-ranking officers and officials of the 
Soviet Union. 
(b) REQUIREMENTS OF PLAN.—Such plan shall include— 
(1) specific identification of the United States officers and 
officials selected for participation in the program; 
(2) the proposed length of the exchange visits with the Soviet 
Union; 
(3) a description of the specific goals of each exchange visit; 
(4) an estimate of the cost to the United States of participa-
tion in each visit; 
(5) a description of any special actions that will be taken to 
protect classified information of the United States during any 
visit to the United States by officers or officials of the Soviet 
Union who are participating in the pn^ram; and 
(6) any other details of tiie prt^ram that the Secretary con-
siders appropriate. 
(c) AVAILABILITY OF FUNDS.—Of the funds appropriated pursuant 
Ante, p. 615. 
to section 301(a), the sum of $100,000 shall be available only for costs 
required for participation by the United States in the pilot program 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 707 
described in subsection (a), including costs for travel, subsistence, 
and other support expenses. 
(d) DEADLINE FOR PLAN.—The Secretary shall submit the plan 
required by subsection (a) not later than December 1,1985. 
SEC. 1006. REPORT ON NUCLEAR WINTER FINDINGS AND POLICY 
IMPLICATIONS 
(a) CONTINUED PARTICIPATION IN INTERAGENCY STUDIES.—Notwith-
standing any limitation in any other provision of this Act, the 
Secretary of Defense, in accordance with section 1107(a) of the 
Department of Defense Authorization Act, 1985 (Public Law 98-525), 
shall participate in any comprehensive interagency study conducted 
on the atmospheric, climatic, environmental, and biological con-
sequences of nuclear war and the implications that such con-
sequences have for the nuclear weapons strategy and policy, the 
arms control policy, and the civil defense policy of the United States. 
(b) REPORT ON NUCLEAR WINTER FINDINGS.—Not later than 
March 1, 1986, the Secretary of Defense shall submit to the Commit-
tees on Armed Services of the Senate and House of Representatives 
an unclassified report suitable for release to the public, together 
with classified addenda (if required), concerning the subject de-
scribed in subsection (a). The Secretary shall include in such report 
the following: 
(1) A detailed review and assessment of the findings in the 
current body of domestic and international scientific literature 
on the atmospheric, climatic, environmental, and biological 
consequences of nuclear explosions and nuclear exchanges. 
(2) A thorough evaluation of the implications that such find-
ings have on— 
(A) the nuclear weapons policy of the United States, 
especially with regard to strategy, targeting, planning, com-
mand, control, procurement, and deployment; 
(B) the nuclear arms control policy of the United States; 
and 
(C) the civil defense policy of the United States. 
(3) A discussion of the manner in which the results of such 
evaluation of policy implications will be incorporated into the 
nuclear weapons, arms control, and civil defense policies of the 
United States. 
(4) An analysis of the extent to which current scientific 
findings on the consequences of nuclear explosions are being 
studied, disseminated, and used in the Soviet Union. 
TITLE XI—MATTERS RELATING TO NATO 
SEC. IIOL LIMITED AUTHORITY TO EXCEED PERMANENT CEILING ON 
UNITED STATES FORCES ASSIGNED TO NATO 
Section 1002(c)(1) of the Department of Defense Authorization Act, 
1985 (Public Law 98-525; 98 Stat. 2575), is amended by adding at the 
end thereof the following new sentence: "The Secretary of Defense 
may exceed such permanent ceiling in any year by a number equal 
to not more than Vz of 1 percent for the purpose of achieving sound 
management in the rotation of members of the Armed Forces of the 
United States to and from assignment to permanent duty ashore in 
European member nations of NATO, but only if the Secretary 
determines that the increase in such year is necessary for such 
purpose.". 
98 Stat. 2583. 
Union of Soviet 
Socialist 
Republics. 
22 u s e 1928 
note. 
Armed Forces. 
99 STAT. 708 
PUBLIC LAW 99-145—NOV. 8, 1985 
Ante, p. 199. 
SEC. 1102. NORTH ATLANTIC TREATY ORGANIZATION COOPERATIVE 
PROJECTS 
(a) REVISION OF AUTHORITY.—(1) Section 27 of the Arms Export 
Control Act (22 U.S.C. 2767) is amended to read as follows: 
NORTH ATLANTIC TREATY ORGANIZATION COOPERATIVE PROJECTS 
International 
"SEC. 27. (a) The President may enter into a cooperative project 
agreements. 
agreement with the North Atlantic Treaty Organization (NATO) or 
with one or more member countries of that organization. 
"(b) As used in this section— 
"(1) the term 'cooperative project' means a jointly managed 
arrangement, described in a written agreement among the 
parties, which is undertaken in order to further the objectives of 
standardization, rationalization, and interoperability of the 
armed forces of North Atlantic Treaty Organization member 
countries and which provides— 
"(A) for one or more of the other participants to share 
with the United States the costs of research on and develop-
ment, testing, evaluation, or joint production (including 
follow-on support) of certain defense articles; 
"(B) for concurrent production in the United States and 
in another member country of a defense article jointly 
developed in accordance with clause (A); or 
"(C) for procurement by the United States of a defense 
article or defense service from another member country; 
and 
"(2) the term 'other participant' means a participant in a 
cooperative project other than the United States. 
"(c) Each agreement for a cooperative project shall provide that 
the United States and each of the other participants will contribute 
to the cooperative project its equitable share of the fuU cost of the 
cooperative project and will receive an equitable share of the results 
of the cooperative project. The full costs of such cooperative project 
shall include overhead and administrative costs. The United States 
and the other participants may contribute their equitable shares of 
the full cost of such cooperative project in funds or in defense 
articles or defense services needed for the project. Military assist-
ance and financing received from the United States Government 
may not be used by any other participant to provide its share of the 
cost of such cooperative project. Such agreements shall provide that 
no requirement shall be imposed by a participant for worksharing or 
other industrial or commercial compensation in connection with 
such g^eement that is not in accordance with such s^eement. 
Contracts. 
"(d) "ITie President may enter into contracts or incur other obliga-
tions for a cooperative project on behalf of the other participants, 
without charge to any appropriation or contract authorization, if 
each of the other participants in the cooperative project agrees (1) to 
pay its equitable share of the contract or other obligations, and (2) to 
make such funds available in such amounts and at such times as 
may be required by the contract or such other obligations and to pay 
any damages and costs that may accrue from the performance of or 
cancellation of such contract or other obligations in advance of the 
time such payments, damages, or costs are due. 
"(e) With the approval of the Secretary of State and the Secretary 
of Defense, a cooperative agreement entered into by the United 
States before the date of the enactment of the Department of 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 709 
Ante, p. 197. 
22 use 2762. 
Ante, p. 204. 
Defense Authorization Act, 1986, that otherwise meets the require- Ante, p. 583. 
ments of this section may be treated on and after such date as 
having been made under this section. 
"(fKD For those cooperative projects entered into on or after the 
date of the enactment of the Etepartment of Defense Authorization 
Act, 1986, the President may reduce or waive the charge or charges 
which would otherwise be considered appropriate under section 21(e) 
of this Act in connection with sales under sections 21 and 22 of this 
Act when such sales are made as part of the cooperative project. 
However, the President may reduce or waive such charge or charges 
only if the other participants agree to reduce or waive corresponding 
charges. 
"(2) Notwithstanding section 21(eXlXA) and section 43(b) of this 
Act, administrative surcharges shall not be increased on other sales 
made under this Act in order to compensate for reductions or 
waivers of such surcharges under this section. Funds received pursu-
ant to such other sales shall not be available to reimburse the costs 
incurred by the United States Government for which reduction or 
waiver is approved by the President under this section. 
"(g) Not less than 15 days before a cooperative project agreement 
is signed on behalf of the United States, the President shall transmit 
to the Speaker of the House of Representatives, the chairman of the 
Committee on Foreign Relations of the Senate, and the chairman of 
the Committee on Armed Services of the Senate a numbered certifi-
cation with respect to such proposed agreement, setting forth— 
"(A) a detailed description of the cooperative project with 
respect to which the certification is made; 
"(B) an estimate of the quantity of the defense articles 
expected to be produced in furtherance of such cooperative 
project; 
"(C) an estimate of the full cost of the cooperative project, 
with an estimate of that part of the full cost to be incurred by 
the United States Grovemment for its participation in such 
cooperative project and an estimate of that part of the full costs 
to be incurred by the other participants; 
"(D) an estimate of the dollar value of the funds to be 
contributed by the United States and each of the other partici-
pants on beh^f of such cooperative project; 
"(E) a description of the defense articles and defense services 
expected to be contributed by the United States and each of the 
other participants on behalf of such cooperative project; 
"(F) a statement of the foreign policy and national security 
benefits anticipated to be derived from such cooperative project; 
and 
i <i 
"(G) to the extent known, whether it is likely that prime 
contracts will be awarded to particular prime contractors or 
subcontracts will be awarded to particular subcontractors to 
comply with the proposed agreement. 
"(h) Section 36(b) of this Act shall not apply to sales made under 
Ante, p. 203 
section 21 or 22 of this Act and to production and exports made 
pursuant to cooperative projects under this section, and section 36(c) 
of this Act shall not apply to the issuance of licenses or other 
approvsds under section 38 of this Act, if such sales are made, such 
production and exports ensue, or such licenses or approvals are 
issued as part of a cooperative project. 
iiii,?\ 
Ante, pp. 156, 
203, 204. 
99 STAT. 710 
PUBLIC LAW 99-145—NOV. 8, 1985 
Ante, p. 197. 
22 u s e 2762. 
Ante, p. 583. 
Ante, p. 201. 
Ante, p. 201. 
Ante, p. 199. 
Ante, p. 201. 
Ante, p. 199. 
22 u s e 2752 
note. 
Ante, p. 190. 
Ante, p. 689. 
"(i) The authority under this section is in addition to the authority 
under sections 21 and 22 of this Act and under any other provision 
of law. 
"(j) Notwithstanding the amendments made to this section by the 
Department of Defense Authorization Act, 1986, projects entered 
into under this section before the date of such amendments may be 
carried through to conclusion in accordance with the terms of this 
section as in effect immediately before the effective date of 
amendments.". 
(2) Section 2(b) of such Act (22 U.S.C. 2752(b)) is amended to read 
as follows: 
"(b) Under the direction of the President, the Secretary of State 
(taking into account other United States activities abroad, such as 
military assistance, economic assistance, and food for peace pro-
gram) shall be responsible for the continuous supervision and gen-
eral direction of sales, leases, financing, cooperative projects, and 
exports under this Act, including, but not limited to, determining— 
"(1) whether there will be a sale to or financing for a country 
and the amount thereof; 
"(2) whether there will be a lease to a country; 
"(3) whether there will be a cooperative project and the scope 
thereof; and 
"(4) whether there will be delivery or other performance 
under such sale, lease, cooperative project, or export, 
to the end that sales, financing, leases, cooperative projects, and 
exports will be integrated with other United States activities and to 
the end that the foreign policy of the United States would be best 
served thereby.". 
(3) Section 3(a) of such Act (22 U.S.C. 2753(a)) is amended— 
(A) in the text preceding clause (1), by inserting ", and no 
agreement shall be entered into for a cooperative project (as 
defined in section 27(b) of this Act)," after "international 
organization,"; 
(B) in paragraph (2)— 
(i) by inserting ", or produced in a cooperative project (as 
defined in section 27 of this Act)" after "so furnished to it"; 
(ii) by inserting "(or the North Atlantic Treaty Organiza-
tion or the specified member countries (other than the 
United States) in case of a cooperative project)" after 
"international organization" the second place it appears; 
and 
(C) in paragraph (3), by inserting "or service" after "such 
article" both places it appears. 
(4) Section 42(e) of such Act (22 U.S.C. 2791(e)) is amended— 
(A) in paragraph (1), by inserting ", and each contract entered 
into under section 27(d) of this Act," after "of this Act"; and 
(B) in paragraph (3), by inserting "or under contracts entered 
into under section 27(d) of this Act" after "of this Act". 
(5) The amendments made by this subsection are repealed effective 
as of the effective date of similar amendments to the Arms Export 
Control Act in the International Security and Development Coopera-
tive Act of 1985 or any other law. 
(b) AMENDMENT TO TITLE 10, UNITED STATES CODE.—(1) Chapter 
141 of title 10, United States Code (as amended by section 917), 
is amended by adding at the end thereof the following new section: 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 711 
"§2407. Acquisition of defense equipment under North Atlantic 
Treaty Organization cooperative projects 
"(a)(1) If the President delegates to the Secretary of Defense the 
authority to carry out section 27(d) of the Arms Export Control Act 
(22 U.S.C. 2767(d)), relating to North Atlantic Treaty Organization 
(NATO) cooperative projects (as defined in such section), the Sec-
retary may utilize his authority under this title in carrying out 
contracts or obligations incurred under such section. 
"(2) Except as provided in subsection (c), chapter 137 of this title 
shall apply to such contracts (referred to in paragraph (1)) entered 
into by the Secretary of Defense. Except to the extent waived under 
subsection (c) or some other provision of law, all other provisions of 
law relating to procurement, if otherwise applicable, shall apply to 
such contracts entered into by the Secretary of Defense. 
"(b) When contracting or incurring obligations under section 27(d) 
of the Arms Export Control Act for cooperative projects, the Sec-
retary of Defense may require subcontracts to be awarded to 
particular subcontractors in furtherance of the cooperative project. 
"(c)(1) Subject to paragraph (2), when entering into contracts or 
incurring obligations under section 27(d) of the Arms Export Control 
Act outside the United States, the Secretary of Defense may waive 
with respect to any such contract or subcontract the application of 
any provision of law, other than a provision of the Arms Export 
Control Act or section 2304 of this title, that specifically— 
"(A) prescribe procedures to be followed in the formation of 
contracts; 
"(B) prescribe terms and conditions to be included in 
contracts; 
"(C) prescribe requirements for or preferences to be given to 
goods grown, produced, or manufactured in the United States or 
in United States Government-owned facilities or for services to 
be performed in the United States; or 
"(D) prescribe requirements regulating the performance of 
contracts. 
"(2) A waiver may not be made under paragraph (1) unless the 
Secretary determines that the waiver is necessary to ensure that the 
cooperative project will significantly further NATO standardization, 
rationalization, and interoperability. 
"(3) The authority of the Secretary to make waivers under this 
subsection may be delegated only to the Deputy Secretary of 
Defense or the Acquisition Executive designated for the Office of the 
Secretary of Defense. 
"(d)(1) The Secretary of Defense shall notify the Congress each 
time he requires that a prime contract be awarded to a particular 
prime contractor or that a subcontract to be awarded to a particular 
subcontractor to comply with a cooperative agreement. The Sec-
retary shall include in each such notice the reason for exercising his 
authority to designate a particular contractor or subcontractor, as 
the case may be. 
"(2) The Secretary shall also notify the Congress each time he 
exercises a waiver under subsection (c) and shall include in such 
notice the particular provision or provisions of law that were 
waived. 
"(3) A report under this subsection shall be required only to the 
extent that the information required by this subsection has not been 
Contracts. 
10 use 2407. 
Ante, p. 199, 
10 use 2301 et 
22 use 2751 
note. 
98 Stat. 1187. 
10 use 2304. 
Report. 
99 STAT. 712 
PUBLIC LAW 99-145—NOV. 8, 1985 
provided in a report made by the President under section 27(e) of the 
Ante, p. 199. 
Arms Export Control Act (22 U.S.C. 2767(e)). 
"(e)(1) In carrying out a cooperative project under section 27 of the 
Arms Export Control Act, the Secretary of Defense may agree that a 
participant (other than the United States) may make a contract for 
requirements of the United States under the project if the Secretary 
determines that such a contract will significantly further NATO 
standardization, rationalization, and interoperability. Except to the 
extent waived under this section or under any other provision of 
law, the Secretary shall ensure that such contract will be made on a 
competitive basis and that United States sources will not be pre-
cluded from competing under the contract. 
"(2) If a participant (other than the United States) in a NATO 
cooperative project makes a contract on behalf of such project to 
meet the requirements of the United States, the contract may 
permit the contracting party to follow its own procedures relating to 
contracting. 
"(f) In carrying out a cooperative project, the Secretary of Defense 
may also agree to the disposal of property that is jointly acquired by 
the members of the project without regard to any laws of the United 
States applicable to the disposal of property owned by the United 
States. Disposal of such property may include a transfer of the 
interest of the United States in such property to one of the other 
governments participating in the cooperative agreement or the sale 
of such property. Payment for the transfer or sale of any interest of 
the United States in any such property shall be made in accordance 
with the terms of the cooperative agreement. 
"(g) Nothing in this section shall be construed as authorizing— 
"(1) the Secretary of Defense to waive any of the financial 
management responsibilities administered by the Secretary of 
the Treasury; or 
"(2) to waive the cargo preference laws of the United States, 
including the Military Cargo Preference Act of 1904 (10 U.S.C. 
2631) and the Cargo Preference Act of 1954 (46 U.S.C. 1241(b)).". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following new item: 
"2407. Acquisition of defense equipment under North Atlantic Treaty Organization 
cooperative projects.". 
10 u s e 2407 
SEC. 1103. NATO COOPERATIVE RESEARCH AND DEVELOPMENT 
(a) FINDINGS.—The Congress hereby finds— 
(1) that for more than a decade the member nations of the 
North Atlantic Treaty Organization (NATO) have provided in 
the aggregate significantly larger resources for defense pur-
poses than have the member nations of the Warsaw Treaty 
Organization; 
(2) that, despite this fact, the Warsaw Treaty Organization 
member nations have produced and deployed many more major 
combat items such as tanks, armored personnel carriers, artil-
lery pieces and rocket launchers, armed helicopters, and tac-
tical combat aircraft than have the member nations of NATO; 
and 
(3) that a major reason for this discouraging performance by 
NATO is inadequate cooperation among NATO nations in 
research, development, and production of military end-items of 
equipment and munitions. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 713 
(b) CONGRESSIONAL REQUEST FOR COOPERATION ON R&D.—The Con-
gress, therefore, urges and requests the President, the Secretary of 
Defense, and the United States Representative to the North Atlantic 
Treaty Organization to pursue diligently opportunities for member 
nations of NATO to cooperate— 
(1) in research and development on defense equipment and 
munitions; and 
(2) in the production of defense equipment, including— 
(A) coproduction of conventional defense equipment by 
the United States and other member nations of NATO; and 
(B) production by United States contractors of conven-
tional defense equipment designed and developed by other 
member nations of NATO. 
(c) FUNDS FOR COOPERATIVE PROJECTS.—(1) Of the funds appro-
priated pursuant to the authorizations in section 201(a) $200,000,000 
Ante, p. 605. 
shall be available, in equal amounts, to the Army, Navy, Air Force, 
and Defense Agencies only for NATO cooperative research and 
development projects as provided in this section. 
(2) As used in this section, the term "cooperative research and 
development project" means a project involving joint participation 
by the United States and one or more other member nations of 
NATO under a memorandum of understanding (or other formal 
agreement) to carry out a joint research and 
development 
pr(^ram— 
(A) to develop new conventional defense equipment and muni-
tions; or 
(B) to modify existing military equipment to meet United 
States military requirements. 
(d) RESTRICTIONS.—(1) A memorandum of understanding (or other 
formal agreement) to conduct a cooperative research and develop-
ment project may not be entered into unless the Secretary of 
Defense determines that the proposed project enhances the ongoing 
multinational effort to improve NATO's conventional defense 
capabilities through the application of emerging technology. 
(2) The Secretary may not delegate the authority to make a 
determination under paragraph (1) except to the Deputy Secretary 
of Defense or the Under Secretary of Defense for R ^ a r c h and 
Engineering. 
(e) RESTRICTIONS ON PROCUREMENT OF EQUIPMENT AND SERVICES.— 
In order to assure substantial participation on the part of other 
member nations of NATO in approved cooperative research and 
development projects, funds made available under subsection (c) for 
such projects may not be used to procure equipment or services from 
any foreign government, foreign research organization, or other 
foreign entity. 
(f) C!ooPERATivE OPPORTUNITIES DOCUMENT.—(IXA) In order to 
ensure that opportunities to conduct cooperative research and devel-
opment projects are considered during the early decision points in 
the Department of Defense's formal development review process in 
connection with any planned project of the Department of Defense, 
the Under Secretary of Defense for Research and Engineering shall 
prepare a formal arms cooperation opportunities document for 
review by the Defense Systems Acquisition Review C!ouncil at its 
formal meetings. 
(B) The Under Secretary shall also prepare an arms cooperation 
opportunities document for review of each new project for which a 
Justification of M^or Systems New Start document is prepared. 
99 STAT. 714 
PUBLIC LAW 99-145—NOV. 8, 1985 
(2) The formal arms cooperation opportunities document referred 
to in paragraph (1) shall include the following: 
(A) A statement indicating whether or not a project similar to 
the one under consideration by the Department of Defense is in 
development or production by one or more of the other NATO 
member nations. 
(B) If a project similar to the one under consideration by the 
Department of Defense is in development by one or more other 
member nations of NATO, an assessment by the Under Sec-
retary of Defense for Research and Engineering as to whether 
that project could satisfy, or could be modified in scope so as to 
satisfy, the military requirements of the project of the United 
States under consideration by the Department of Defense. 
(C) An assessment of the advantages and disadvantages with 
regard to program timing, developmental and life cycle costs, 
technology sharing, and Rationalization, Standardization, and 
Interoperability (RSI) of seeking to structure a cooperative 
development program with one or more other NATO member 
nations. 
(D) The recommendation of the Under Secretary of Defense 
for Research and Engineering as to whether the Department of 
Defense should explore the feasibility and desirability of a 
cooperative development program with one or more other 
member nations of NATO. 
(g) SiDE-BY-SiDE TESTING.—(1) It is the sense of Congress— 
(A) that the Department of Defense should perform more side-
by-side testing of conventional defense equipment manufac-
tured by the United States and other member nations of NATO; 
and 
(B) that such testing should be conducted at the late stage of 
the development process when there is usually only a single 
United States prime contractor. 
(2) In addition to any funds appropriated for activities of the 
Ante, p. 605. 
Director of Defense Test and Evaluation pursuant to section 201(a), 
$50,000,000 shall be available to the Director, from any other funds 
appropriated to the Department of Defense for fiscal year 1986, for 
the acquisition of items of the type specified in paragraph (3) 
manufactured by other member nations of NATO for side-by-side 
comparison testing with comparable items of United 
States 
manufacture. 
(3) Items that may be acquired by the Director of Defense Test and 
Evaluation under paragraph (2) include the following: 
(A) Submunitions and dispensers. 
(B) Anti-tank and anti-armor guided missiles. 
(C) Mines, for both land and naval warfare. 
(D) Runway-cratering devices. 
(E) Torpedoes. 
(F) Mortar systems. 
(G) Light armored vehicles and major subsystems thereof. 
(H) Utility vehicles. 
(I) High-velocity anti-tank guns. 
(J) Short-Range Air Defense Systems (SHORADS). 
(K) Mobile air defense systems and components. 
(4) The Director of Defense Test and Evaluation shall notify the 
Committees on Armed Services and on Appropriations of the Senate 
and House of Representatives of his intent to obligate funds made 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 715 
available to carry out this subsection not less than 30 days before 
such funds are obligated. 
(5) Not later than February 1 of each year, the Director of Defense Report. 
Test and Evaluation shall submit to the Committees on Armed 
Services and on Appropriations of the Senate and House of Rep-
resentatives a report— 
(A) on the systems, subsystems, and munitions produced by 
other member nations of NATO that were evaluated during the 
previous fiscal year by the Director; and 
(B) on the obligation of any funds under this subsection 
during the previous fiscal year. 
(h) SECRETARY TO ENCOURAGE SIMILAR NATO PROGRAMS.—The 
Secretary of Defense shall encourage other member nations of 
NATO to establish programs similar to the one provided for in this 
section. 
TITLE XII—DEPARTMENT OF DEFENSE 
MANAGEMENT 
PART A—MANAGEMENT OF FACILITIES AND D O D ORGANIZATION 
SEC. 1201. ANNUAL SELECTED ACQUISITION REPORTS 
Subsection (c) of section 139a of title 10, United States Code, is 
amended to read as follows: 
"(cXD Each Selected Acquisition Report for the first quarter for a 
fiscal year shall include— 
"(A) the same information, in detailed and summarized form, 
as is provided in reports submitted under section 139 of this 
title; 
10 use 139. 
"(B) the current program acquisition unit cost for each major 
defense acquisition program included in the report and the 
history of that cost from the date the program was first included 
in a Selected Acquisition Report to the end of the quarter for 
which the current report is submitted; and 
"(C) such other information £is the Secretary of Defense 
considers appropriate. 
"(2) Each Selected Acquisition Report for the first quarter of a 
fiscal year shall be prepared and submitted with the same content 
as was used for the Selected Acquisition Report for the first quarter 
of fiscal year 1984. 
"(3) In addition to the material required by paragraphs (1) and (2), 
each Selected Acquisition Report for the first quarter of a fiscal year 
shall include— 
"(A) a full life-cycle cost analysis for each major defense 
acquisition program included in the report that— 
"(i) is in the full-scale engineering development stage or 
has completed that stage; and 
"(ii) was first included in a Selected Acquisition Report 
for a quarter after the first quarter of fiscal year 1985; 
"(B) if the system that is included in that major defense 
acquisition program has an antecedent system, a full life-cycle 
cost analysis for that system; and 
"(C) production information for each major defense acquisi-
tion program included in the report, including (with respect to 
each such program)— 
99 STAT. 716 
PUBLIC LAW 99-145—NOV. 8, 1985 
"(i) specification of the baseline production rate for each 
year of production of the program, defined as the produc-
tion rate for each fiscal year through completion of procure-
ment assumed in the decision to proceed with production 
(commonly referred to as the "Milestone III" decision); 
"(ii) specification of the production rate for each fiscal 
year through completion of procurement assumed in the 
cost-effectiveness analysis prepared in conjunction with the 
decision to proceed with full-scale engineering development 
(commonly referred to as the "Milestone II" decision); 
"(iii) specification of the maximum production rate for 
each year of production under the program, defined as the 
production rate for each fiscal year through completion of 
procurement attainable with the facilities and tooling cur-
rently programmed to be available for procurement under 
the program or otherwise provided by Government funds; 
"(iv) specification of the current production rate for each 
year of production, defined as the production rate for the 
fiscal year during which the report is submitted and the 
annual production rate currently programmed for each 
subsequent fiscal year through completion of procurement, 
based on the President's Budget for the following fiscal 
year; 
"(v) estimation of any cost variance— 
"(I) between the program acquisition unit cost at the 
current production rate specified under clause (iv) and 
the program acquisition unit cost at the baseline 
production rate specified under clause (i); and 
"(II) between the total program cost at the current 
production rate specified under clause (iv) and the total 
program cost at the baseline production rate specified 
under clause (i); 
"(vi) estimation of any cost variance— 
"(I) between the program acquisition unit cost at the 
current production rate specified under clause (iv) and 
the program acquisition unit cost at the maximum 
production rate specified under clause (iii); and 
"(II) between the total program cost at the current 
production rate specified under clause (iv) and the total 
program cost at the maximum production rate specified 
under clause (iii); and 
"(vii) estimation of any schedule or delivery variance— 
"(I) between total quantities assumed in the baseline 
production rate specified under clause (i) and the cur-
rent production rate specified under clause (iv); and 
"(II) total quantities assumed in the maximum 
production rate specified under clause (iii) and the 
current production rate specified under clause (iv). 
"(4) Selected Acquisition Reports for the first quarter of a fiscal 
year shall be known as comprehensive annual Selected Acquisition 
Reports.". 
SEC. 1202. BASE CLOSURES AND REALIGNMENTS 
98 Stat. 2624. 
(a) IN GENERAL.—Section 2687 of title 10, United States Code, is 
amended to read as follows: 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 717 
"§ 2687. Base closures and realignments 
"(a) Notwithstanding any other provision of law, no action may be 
taken to effect or implement— 
"(1) the closure of any military installation at which at least 
300 civilian personnel are authorized to be employed; 
"(2) any realignment with respect to any military installation 
referred to in paragraph (1) involving a reduction by more than 
1,000, or by more than 50 percent, in the number of civilian 
personnel authorized to be employed at such military installa-
tion at the time the Secretary of Defense or the Secretary of the 
military department concerned notifies the Congress under 
subsection (b) of the Secretary's plan to close or realign such 
installation; or 
"(3) any construction, conversion, or rehabilitation at any 
military facility other than a military installation referred to in 
clause (1) or (2) which will or may be required as a result of the 
relocation of civilian personnel to such facility by reason of any 
closure or realignment to which clause (1) or (2) applies, 
unless and until the provisions of subsection (b) are complied with. 
"(b) No action described in subsection (a) with respect to the 
closure of, or a realignment with respect to, any military installa-
tion referred to in such subsection may be taken unless and until— 
"(1) the Secretary of Defense or the Secretary of the military 
department concerned notifies the Committees on Armed Serv-
ices of the Senate and House of Representatives, as part of an 
annual request for authorization of appropriations to such 
Committees, of the proposed closing or realignment and submits 
with the notification an evaluation of the fiscal, local economic, 
budgetary, environmental, strategic, and operational con-
sequences of such closure or realignment; and 
"(2) a period of 30 legislative days or 60 calendar days, 
whichever is longer, expires following the day on which the 
notice and evaluation referred to in clause (1) have been submit-
ted to such committees, during which period no irrevocable 
action may be taken to effect or implement the decision. 
"(c) This section shall not apply to the closure of a military 
installation, or a realignment with respect to a military installation, 
if the President certifies to the Congress that such closure or 
realignment must be implemented for reasons of national security 
or a military emergency. 
"(dXD After the expiration of the period of time provided for in 
subsection (bX2) with respect to the closure or realignment of a 
military installation, funds which would otherwise be available to 
the Secretary to effect the closure or realignment of that installa-
tion may be used by him for such purpose. 
"(2) Nothing in this section restricts the authority of the Secretary 
to obtain architectural and engineering services under section 2807 
of this title. 
10 USC 2807. 
"(e) In this section: 
"(1) 'Military installation' means a base, camp, post, station, 
yard, center, or other activity under the jurisdiction of the 
Secretary of a military department which is located within any 
of the several States, the District of Columbia, the Common-
wealth of Puerto Rico, American Samoa, the Virgin Islands, or 
Guam. Such term does not include any facility used primarily 
99 STAT. 718 
PUBLIC LAW 99-145—NOV. 8, 1985 
for civil works, rivers and harbors projects, or flood control 
projects. 
"(2) 'Civilian personnel' means direct-hire, permanent civilian 
employees of the Department of Defense. 
"(3) 'Realignment' includes any action which both reduces 
and relocates functions and civilian personnel positions, but 
does not include a reduction in force resulting from workload 
adjustments, reduced personnel or funding levels, skill imbal-
ances, or other similar causes. 
"(4) 'Legislative day' means a day on which either House of 
Congress is in session.". 
10 use 2687 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
note. 
shall apply to closures and realignments completed on or after the 
date of the enactment of this Act, except that any action taken to 
effect or implement any closure or realignment for which a public 
Ante, p. 717. 
announcement was made pursuant to section 2687(b)(1) of title 10, 
United States Code, after April 1, 1985, and before the date of 
enactment of this Act shall be subject to the provisions of section 
2687 of such title as in effect on the day before such date of 
enactment. 
SEC. 1203. DEMONSTRATION PROJECT TO TEST THE USE OF A CERTAIN 
COMPUTER SYSTEM IN MILITARY HOSPITALS 
(a) TEST OF VETERANS' ADMINISTRATION DECENTRALIZED HOSPITAL 
COMPUTER PROGRAM (DHCP).—The Secretary of Defense (herein-
after in this section referred to as the "Secretary") shall carry out a 
demonstration project for the purpose of testing the use in military 
hospitals of the hospital-management computer system of the Veter-
ans' Administration known as the Veterans' Administration's 
decentralized hospital computer program. The purpose of the test 
shall be to determine the feasibility and cost-effectiveness of the use 
in military hospitals of such system rather than the use of a 
centralized hospital-management computer system, including the 
Composite Health-Care System. 
(b) DURATION AND LOCATION OF DEMONSTRATION PROJECT.—The 
demonstration project under subsection (a) shall be carried out over 
a six-month period beginning on March 1, 1986, in two military 
hospitals. One of such hospitals shall be the hospital at March Air 
Force Base, and the test of the Veterans' Administration decentral-
ized hospital computer program at such Air Force Base shall be 
expanded to meet the requirements of this section. The second 
hospital at which the demonstration project shall be carried out 
shall be designated by the Secretary of Defense. Such hospital may 
not be under the jurisdiction of the Secretary of the Air Force and 
shall be significantly larger than the hospital at March Air Force 
Base. 
(c) USE OF ALL COMPONENTS OF DHCP.—The Secretary, in con-
sultation with the Administrator of Veterans' Affairs, shall ensure 
that all available components of the Veterans' Administration 
system referred to in subsection (a) (including equipment and soft-
ware) are used at their current functional level in each hospital in 
which the system is tested under this section. 
(d) ASSISTANCE FROM VETERANS' ADMINISTRATION.—The Adminis-
trator of Veterans' Affairs shall provide, on a reimbursable basis, 
such personnel and equipment as are requested by the Secretary 
and determined by the Administrator to be available in order to 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 719 
assist the Secretary in carrying out the demonstration project under 
subsection (a). 
(e) REPORT BY SECRETARY OF DEFENSE.—The Secretary shall trans-
mit to Congress a report describing the demonstration project car-
ried out under this section. Such report shall include specific find-
ings and conclusions by the Secretary, and by the Secretary of each 
military department, with respect to the feasibility and cost-
effectiveness of using the Veterans' Administration system referred 
to in subsection (a) in military hospitals, including the cost advan-
tage that would accrue from acquiring a hospital-management com-
puter system in the near term rather than the date that would 
apply if the Secretary were to acquire a centralized computer 
system, including the Composite Health-Care System. 
(f) COMPTROLLER GENERAL EVALUATION AND REPORTS.—(1) The 
Comptroller General shall evaluate— 
(A) the acquisition and implementation of the Composite 
Health-Care System; and 
(B) the conduct of the demonstration project. 
(2) The Comptroller General shall submit to Congress the reports 
specified in subsection (g) with respect to such evaluations and such 
other reports on such evaluations as may be appropriate. 
(3) The evaluations required by paragraph (1) shall include consid-
eration o
f
— 
(A) whether the Department of Defense has carried out the 
demonstration project in accordance with this section; 
(B) the results of the demonstration project, including the 
feasibility and cost-effectiveness 
of using the Veterans' 
Administration system referred to in subsection (a) in military 
hospitals in lieu of the Composite Health-Care System; and 
(C) the competitive acquisition process followed by the Depart-
ment of Defense in making the selection of, and contract awards 
to, vendors for the Composite Health-Care System. 
(g) RESTRICTIONS.—(1) The Secretary may not select vendors for 
the competition phase of the acquisition of the Composite Health-
Care System or enter into any contract related to that phase until 
the earlier of— 
(A) June 1,1986; or 
(B) the end of the 60-day period beginning on the date the 
Comptroller General submits a report under subsection (f) on 
the competitive acquisition process followed by the Department 
of Defense in selecting vendors for such competition phase. 
(2) The Secretary may not enter into a contract for the procure-
ment of a centralized computer system for military hospitals, includ-
ing the Composite Health-Care System, until the Secretary— 
(A) evaluates the results of the project carried out under this 
section in accordance with subsection (e); 
(B) submits to Congress a report on such evaluation; and 
(C) a period of 60 days has passed after receipt by Congress of 
that report. 
(3) The Secretary may not make the final selection of a vendor or 
enter into a contract for the procurement of a centralized computer 
system for military hospitals, including the Composite Health-Care 
System, until the earlier of^ 
(A) July 1,1987; or 
(B) the end of the 60-day period beginning on the date on 
which the Comptroller General submits a report under subsec-
tion (f) on— 
C!ontract. 
Contract. 
99 STAT. 720 
PUBLIC LAW 99-145—NOV. 8, 1985 
Repeals. 
Advisory Council 
on Dependents' 
Education, 
establishment. 
(i) the results of the demonstration project carried out 
under this section; and 
(ii) the competitive acquisition process followed by the 
Department of Defense leading to the final selection of a 
vendor, 
(h) DEFINITIONS.—In this section: 
(1) The term "military hospital" means a hospital or medical 
center under the jurisdiction of the Secretary of a military 
department. 
(2) The term "Composite Health-Care System" means the 
centralized hospital-management computer system that the 
Department of Defense is in the process of acquiring (as of the 
date of the enactment of this Act) for its medical facilities. 
SEC. 1204. CONTINUED OPERATION BY THE SECRETARY OF DEFENSE OF 
THE DEFENSE DEPENDENTS' EDUCATION SYSTEM 
(a) AMENDMENTS TO DEPARTMENT OF EDUCATION ORGANIZATION 
ACT.—(1) Sections 202(e), 208, 302, and 401(f), of the Department 
of Education Organization Act (20 U.S.C. 3412(e), 3418, 3442, and 
3461(f)), are repealed. 
(2) Section 419(a) of such Act (20 U.S.C. 3479(a)) is amended— 
(A) by striking out "(1)" after "(a)"; and 
(B) by striking out paragraph (2). 
(3) Section 503(a) of such Act (20 U.S.C. 3503(a)) is amended— 
(A) by striking out "(1)" after "(a)"; and 
(B) by striking out paragraph (2). 
(4) The table of contents at the beginning of such Act is amended 
by striking out the items relating to sections 208 and 302. 
(5) Section 414(b) of such Act (20 U.S.C. 3474(b)) is amended by 
striking out "302,". 
(b) AMENDMENTS TO DEFENSE DEPENDENTS' EDUCATION ACT OF 
1978.—(1) Section 1402 of the Defense Dependents' Education Act of 
1978 (20 U.S.C. 921) is amended by adding at the end thereof the 
following new subsection: 
"(c) The Secretary of Defense shall consult with the Secretary of 
Education on the educational programs and practices of the defense 
dependents' education system. . 
(2XA) Subsection (aXD of section 1410 of such Act (20 U.S.C. 928) is 
amended by adding at the end thereof the following new sentence: 
"The membership of each such advisory committee shall also in-
clude one nonvoting member designated by the organization recog-
nized as the exclusive bargaining representative of the employees 
working at the school.". 
(B) The first sentence of subsection (b) of such section is amended 
by striking out "Members" and inserting in lieu thereof "Except in 
the case of a nonvoting member designated under the last sentence 
of subsection (aXD, members". 
(C) The second sentence of such subsection is amended by striking 
out "The Secretary of Education, in consultation with the Secretary 
of Defense," and inserting in lieu thereof "The Secretary of 
(3XA) Subsection (a) of section 1411 of such Act (20 U.S.C. 929) is 
amended to read as follows: 
"(aXD There is established in the Department of Defense an 
Advisory Council on Dependents' Education (hereinafter in this 
section referred to as the 'Council'). The Council shall be composed 
of— 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 721 
"(A) the Secretary of Defense and the Secretary of Education, 
or their respective designees; 
"(B) 12 individuals appointed jointly by the Secretary of 
Defense and the Secretary of Education who shall be individuals 
who have demonstrated an interest in the field of primary or 
secondary education and who shall include representatives of 
professional employee organizations, school administrators, and 
parents of students enrolled in the defense dependents' edu-
cation system, and one student enrolled in such system; and 
"(C) a representative of the Secretary of Defense and of the 
Secretary of Education. 
"(2) Individuals appointed to the Council from professional em-
ployee oijganizations shall be individuals designated by those 
organizatijons. 
"(3) Thei Secretary of Defense, or the Secretary's designee, and the 
Secretary of Education, or the Secretary's designee, shall serve as 
cochairmein of the Council. 
"(4) The Director shall be the Executive Secretary of the 
Council.". 
(4) Subsection (bXD of such section is amended by inserting "the 
Secretary of Defense and" before "the Secretary of Education". 
(5) Subsection (c) of such section is amended— 
(A) by striking out "at least four times each year" and 
inserting in lieu thereof "at least two times each year"; 
(B) by striking out paragraph (2); 
(C) by redesignating paragraphs (3), (4), and (5) as paragraphs 
(2), (3), and (4), respectively; and 
(D) by striking out "Secretary of Education" in paragraph (4) 
(as redesignated by subparagraph (C) of this paragraph) and 
inserting in lieu thereof "Secretary of Defense". 
(c) (INFORMING AMENDMENT.—Section 5316 of title 5, United 
States Code, is amended by striking out "Administrator of Edu-
cation for Overseas Dependents, Department of Education.". 
SEC. 1205. AUTHORITY TO ENROLL CERTAIN CHILDREN IN OVERSEAS 
SCHOOLS OF THE DEFENSE 
DEPENDENTS' EDUCATION 
SYSTEM 
Section 1404 of the Defense Dependents' Education Act of 1978 (20 
U.S.C. 923) is amended by adding at the end thereof the following 
new subsection: 
"(dXD The Secretary of Defense may authorize the enrollment in 
schools of the defense dependents' education system of children in 
the following classes: 
"(A) Children of officers and employees of the United States 
(including employees of nonappropriated fund activities of the 
Department of Defense) stationed in overseas areas. 
"(B) Clhildren of employees of contractors employed in carry-
ing out work for the United States in overseas areas. 
"(C) Children of other citizens or nationals of the United 
States or of foreign nationals, if the Secretary determines that 
enrollment of such children is in the national interest. 
"(2) Notwithstanding subsection (c), the Secretary may not waive 
the tuition requirements of subsection (bXD with respect to children 
referred to in paragraph (1).". 
99 STAT. 722 
PUBLIC LAW 99-145—NOV. 8, 1985 
SEC. 1206. LIMITATION ON SIZE OF HEADQUARTERS STAFFS 
(a) FREEZE ON HEADQUARTERS PERSONNEL.—As of September 30, 
1986, the total number of military and civilian personnel assigned to 
duty in the agencies of the Department of Defense and the military 
departments to perform management headquarters activities or 
management headquarters support activities may not exceed the 
total number of personnel assigned to perform such activities as of 
September 30,1985. 
(b) CAP ON O S D PERSONNEL.—The number of military and civilian 
personnel assigned to the Office of the Secretary of Defense as of 
September 30,1986, may not exceed 1,765. 
(c) EXCLUSIONS.—In computing the number of military and 
civilian personnel assigned to duty in any agency of the Department 
of Defense or any military department to perform management 
headquarters activities or management headquarters support activi-
ties, the number of personnel assigned to such duty in the National 
Security Agency/Central Security Service, the Defense Intelligence 
Agency, the Organization of the Joint Chiefs of Staff, or the Naval 
Intelligence Command shall not be included. 
(d) DEFINITIONS.—For purposes of this section, the terms "manage-
ment headquarters activities" and "management headquarters sup-
port activities" have the same meanings prescribed for such terms 
in Department of Defense Directive 5100.73 entitled "Department of 
Defense Management Headquarters and Headquarters Support 
Activities", dated January 7,1985. 
SEC. 1207. REPORT ON ORGANIZATIONAL STRUCTURE OF THE MILITARY 
HEALTH-CARE DELIVERY SYSTEM 
(a) REQUIREMENT FOR REPORT.—(1) The Secretary of Defense shall 
submit to Congress a report containing a plan for revising the 
organizational structure of the military health-care delivery system 
to accomplish the goals described in subsection (b). In addition to 
recommendations of the Secretary, the report shall contain an 
analysis and evaluation of the various alternatives for that organiza-
tional structure that have been proposed as well as such other 
measures as the Secretary considers appropriate. 
(2) The report of the Secretary shall be prepared through the 
Office of the Assistant Secretary of Defense for Health Affairs. 
(b) GOALS.—The goals referred to in subsection (a) are the 
following: 
(1) Streamlining the process for allocation of resources of the 
military health-care delivery system, including— 
(A) integrating and coordinating the planning, program-
ming, and budgeting of military medical facilities, equip-
ment, and staffing; and 
(B) adopting uniform budgeting procedures, uniform 
measures of workload, and other actions to improve oper-
ational efficiency (including the elimination of incentives to 
the over-use of inpatient care). 
(2) Improving the quality of medical care, including adoption 
of uniform, rigorous quality assurance standards and proce-
dures to monitor the implementation of those standards. 
(3) Reducing the cost of health care provided by the Depart-
ment of Defense (in military medical facilities and under the 
Civilian Health and Medical Program of the 
Uniformed 
Services) through adoption or adaptation, where possible, of 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 723 
competitive strategies, cost containment innovations, or other 
techniques from the private sector, 
(4) Enhancing medical readiness, including— 
(A) improving joint medical readiness planning within 
the continental United States and overseas; 
(B) standardizing combat medical equipment; 
(C) standardizing the methodology used to determine the 
number of personnel, force structure, and specialty mix 
necessary to meet wartime medical manpower require-
ments; and 
(D) redirecting graduate medical education programs to 
provide training in critical combat specialties. 
(c) VIEWS OF OTHER D O D COMPONENTS.—The Secretary of each 
study. 
military department and the Joint Chiefs of Staff shall each carry 
out an independent study of the matters described in subsection (a). 
The report submitted under subsection (a) shall include the results 
of each such study. The study carried out by the Joint Chiefs of Staff 
shall include comments and contributions from the commanders of 
each of the unified and specified commands. 
(d) DEADUNE FOR REPORT.—The report required by subsection (a) 
shall be submitted not later than 6 months after the date of the 
enactment of this Act. 
SEC. 1208. ANNUAL REPORT ON GUARD AND RESERVE EQUIPMENT 
Section 138(b) of title 10, United States Code, is amended by 
adding at the end thereof the following new paragraph: 
"(3) The Secretary shall include in each report under paragraph 
(2) the following: 
"(A) A listing of each major item of equipment required by 
the Selected Reserve of the Ready Reserve of each reserve 
component indicating— 
"(i) the full war-time requirement of that component for 
that item, shown in accordance with deployment schedules 
and requirements over successive 30-day periods following 
mobilization; 
"(ii) the number of each such item in the inventory of the 
component; 
"(iii) a separate listing of each such item in the inventory 
that is a deployable item and is not the most desired item; 
"(iv) the number of each such item projected to be in the 
inventory at the end of the third succeeding fiscal year; and 
"(v) the number of nondeployable items in the inventory 
as a substitute for a required major item of equipment. 
"(B) A narrative explanation of the plan of the Secretary 
concerned to provide equipment needed to fill the war-time 
requirement for each major item of equipment to all units of the 
Selected Reserve, including an explanation of the plan to equip 
units of the Selected Reserve that are short major items of 
equipment at the outset of war. 
"(C) For each item of major equipment reported under para-
graph (2)(C) in a report for one of the three previous years under 
this subsection as an item expected to be procured for the 
Selected Reserve or to be transferred to the Selected Reserve, 
the quantity of such equipment actually procured for or trans-
ferred to the Selected Reserve.". 
99 STAT. 724 
PUBLIC LAW 99-145—NOV. 8, 1985 ' 
SEC 1209. MORATORIUM ON FRANCHISE AGREEMENTS BY MILITARY 
EXCHANGE SERVICES 
(a) IN GENERAL.—During the period beginning on the date of 
enactment of this Act and ending 30 days after the date Congress 
receives the report required by subsection (b), but no later than 
May 1, 1986, the Commanders of the Army and Air Force Exchange 
Service, the Navy Exchange Service, and the Marine Corps 
Exchange Service may not begin construction of any facility that— 
(1) is located on a military installation in the United States; 
(2) is to be used for the operation of a commercial franchise 
business; and 
(3) is not identified in a contract, supplemental agreement to 
a contract, a contract solicitation, or letter of intent agreed to 
before the date of the enactment of this Act. 
(b) REPORT REQUIREMENT.—(1) Not later than February 1, 1986, 
the Secretary of Defense shall transmit to Congress a report on 
current and proposed commercial franchise business operations on 
military installations. 
(2) The report required by paragraph (1) shall include the 
following: 
(A) A description of current and proposed plans of the 
exchange services referred to in subsection (a) to operate, or to 
authorize the operation of, commercial franchise businesses on 
military installations, specifying the franchises, installations, 
and tyi)es of services provided or to be provided under such 
plans. 
(B) An enumeration of any advantages to commencing or 
expanding commercial franchise business activities on military 
installations. 
(C) A description of the type and value of appropriated fund 
support (including Federal land and facilities) provided to activi-
ties of the exchange services referred to in subsection (a). 
(D) A description of review and approval procedures in effect 
for determining whether the exchange services will enter into 
new commercial business franchise activities or will expand 
existing commercial business franchise activities. 
(E) A description of the procedure for deciding whether serv-
ices should be provided under contract or franchise or by using 
the resources of the exchange services. 
(F) A description of the process by which a military installa-
tion is selected for new or increased levels of activities of the 
exchange services. 
(G) A description of the consideration given to the impact that 
the addition of a new commercial business franchise activity or 
an expansion of an existing commercial business franchise 
activity of an exchange service at a military installation will 
have on private commercial business operations in the vicinity 
of the installation. 
(H) An estimate (after consultation with the Secretary of the 
Treasury) of— 
(i) the amount of tax revenues lost annually by State and 
local jurisdictions as the result of the operation of commer-
cial franchise businesses on military installations in the 
United States; and 
(ii) the potential effect on State and local tax bases oi 
expansion of such businesses. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 725 
(I) The legal basis for and propriety of the operation by an 
instrumentality of the United States of a commercial business 
on a military installation under a franchise arrangement, 
(c) PRIOR NOTICE TO CONGRESS.—(1) An officer or employee of the 
Contract. 
Department of Defense may not enter into a contract for the 
construction of a facility for or operation of a commercial franchise 
business on a military installation in the United States until the 
Secretary of Defense notifies Congress of the intention to enter into 
the contract. 
(2) Paragraph (1) shall expire at the end of the two-year period 
beginning on the date of the enactment of this Act. 
SEC. 1210. PRIORITY FOR AIR FORCE SHUTTLE OPERATIONS AND PLAN-
NING COMPLEX 
(a) DATES FOR IOC.—(1) The Secretary of the Air Force shall give 
sufficient priority to the completion of the Air Force Shuttle Oper-
ations and Planning Complex (SOPC) to ensure an initial oper-
ational capability (IOC) date for mission control at such complex in 
November 1992. 
(2) In order to meet that IOC date, the Secretary is encouraged to 
maximize, to the extent feasible and practicable, commonality of 
design and equipments at the SOPC with the planned modernization 
of shuttle control facilities at the Johnson Space Flight Center. 
(b) REPORT.—At the time of the submission to Congress of the 
President's budget for fiscal year 1987, the Secretary of the Air 
Force shall submit to the Committees on Armed Services of the 
Senate and House of Representatives a report setting forth a pro-
gram plan by which the IOC date as specified in subsection (a) may 
be met. 
SEC. 1211. PROVISION OF URANIUM TETRAFLUORIDE TO CONTRACTORS 
FOR PRODUCTION OF CONVENTIONAL AMMUNITION 
(a) IN GENERAL,—Subject to subsection (b), the Secretary of the 
Army, during fiscal year 1986, may provide uranium tetrafluoride 
(green salt) from stockpile materials available to the Secretary to a 
contractor for the production of conventional ammunition for the 
Army. 
(b) CERTIFICATION BY THE SECRETARY.—The Secretary may not 
provide uranium tetrafluoride to a contractor under this section 
until the Secretary certifies to Congress that— 
(1) such action is necessary to meet the fiscal year 1986 
ammunition production requirement because neither uranium 
tetrafluoride nor depleted uranium metal of the appropriate 
quality is available to the contractor from commercial sources— 
(A) in the quantity needed by the contractor; 
(B) during the period in which the materied is needed by 
the contractor; and 
(C) at a reasonable price (to be determined by the 
Comptroller General of the United States after taking into 
account an appropriate profit and the investment made in 
facilities as a consequence of the decision of the Secretary 
to discontinue providing uranium tetrafluoride to contrac-
tors beginning in fiscal year 1986); 
(2) the contractor has agreed to repay to the United States a 
quantity of uranium tetrafluoride equivalent to the quantity 
provided to the contractor by the Secretary and has presented 
99 STAT. 726 
PUBLIC LAW 99-145—NOV. 8, 1985 
the Secretary with a credible plan for the repayment of the 
material; and 
(3) the contractor has agreed to pay interest (at a rate deter-
mined by the Secretary) for the period beginning on the date on 
which the uranium tetrafluoride is made available to the con-
tractor and ending on the date on which the material is repaid 
to the United States. 
10 use 133 note. 
SEC. 1212. PROHIBITION OF CERTAIN RESTRICTIONS ON INSTITUTIONS 
ELIGIBLE TO PROVIDE EDUCATIONAL SERVICES 
(a) No solicitation, contract, or agreement for the provision of off-
duty postsecondary education services for members of the Armed 
Forces of the United States, civilian employees of the Department of 
Defense, or the dependents of such members or employees may 
discriminate against or preclude any accredited academic institution 
authorized to award one or more associate degrees from offering 
courses within its lawful scope of authority solely on the basis of 
such institution's lack of authority to award a baccalaureate degree. 
(b) No solicitation, contract, or agreement for the provision of off-
duty postsecondary education services for members of the Armed 
Forces of the United States, civilian employees of the Department of 
Defense, or the dependents of such members or employees, other 
than those for services at the graduate or postgraduate level, may 
limit the offering of such services or any group, category, or level of 
courses to a single academic institution. However, nothing in this 
section shall prohibit such actions taken in accordance with regula-
tions of the Secretary of Defense which are uniform for all armed 
services as may be necessary to avoid unnecessary duplication of 
offerings, consistent with the purpose of this provision of ensuring 
the availability of alternative offerors of such services to the m£ixi-
mum extent feasible. 
(c) This section shall apply to contracts entered into after April 1, 
1985. 
Vessels. 
(d) Nothing in this section shall be construed to require more than 
one academic institution to be authorized to offer courses aboard a 
particular naval vessel. 
Study. 
(eXD The Comptroller General of the United States shall carry out 
a study to determine (A) the educational needs of members of the 
Armed Forces of the United States and civilian employees of the 
Department of Defense stationed outside the United States and 
the educational needs of the dependents of such members and 
employees, (B) the most effective and feasible means of meeting such 
needs, and (C) the cost of providing such means. 
Report. 
(2) Not later than September 1, 1986, the Comptroller General 
shall transmit to the Congress a report on the study required by 
subsection (1). The report shall include the Comptroller General's 
findings and such recommendations for legislation as the Comptrol-
ler General considers appropriate. 
PART B—PERSONNEL MANAGEMENT 
SEC. 
1
2
2
1
. 
COUNTERINTELLIGENCE 
POLYGRAPH 
PROGRAM 
(a) IMPLEMENTATION OF PROGRAM.—During fiscal years 1986 and 
1987, the Secretary of Defense shall implement a program of 
counterintelligence polygraph examinations based upon Depart-
ment of Defense Directive 5210.48, dated December 24, 1984, for 
military and civilian personnel of the Department of Defense and 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 727 
personnel of defense contractors whose duties involve access to 
classified information at the level of top secret or classified informa-
tion within special access programs established under section 4.2(a) 
of Executive Order 12356. 
3 CFR, 1982 
(b) LIMITATION DURING FISCAL YEARS 1986 AND 1987.—The total 
CO™P - P ^^^ 
number of persons required to take a counterintelligence polygraph 
examination under this section— 
(1) may not exceed 3,500 during fiscal year 1986; and 
(2) may not exceed 7,000 during fiscal year 1987. 
(c) REPORTS.—(1) Not later than December 31, 1985, the Secretary 
of Defense shall submit to the Committees on Armed Services of the 
Senate and House of Representatives a report on his plans to expand 
the use of polygraph examinations in the Department of Defense. 
Such report shall include a discussion of the Secretary's plans for 
recruiting and training additional polygraph operators. 
(2) Not later than December 31, 1986, the Secretary shall submit 
to the Committees on Armed Services of the Senate and House of 
Representatives a report on the use of polygraph examinations 
administered by or for the Department of Defense during fiscal year 
1986. The report shall include— 
(A) the number of polygraph examinations conducted during 
such fiscal year; 
(B) a description of the purposes and results of such examina-
tions; 
(C) a description of the criteria used for selecting programs 
and individuals for examinations; 
(D) the number of persons who refused to submit to an 
examination; 
(E) a description of the actions taken, including denial of 
clearance or any adverse action, when an individual either 
failed or refused to take the examination; 
(F) an explanation of the uses made of the results of the 
examinations; and 
(G) a detailed accounting of those cases in which more 
than two examinations were needed to attempt to resolve 
discrepancies. 
(d) POLYGRAPH RESEARCH PROGRAM.—(1) The Secretary of Defense 
shall carry out a continuing research program to support the poly-
graph activities of the Department of Defense. The program sh^dl 
include— 
(A) an on-going evaluation of the validity of polygraph tech-
niques used by the Department; 
(B) research on polygraph countermeasures and anti-counter-
measures; and 
(C) developmental 
research 
on 
polygraph 
techniques, 
instrumentation, and analytic methods. 
(2) Not later than December 31 of each year, the Secretary shall 
Report. 
submit to the Committees on Armed Services of the Senate and 
House of Representatives, the Select Committee on Intelligence of 
the Senate, and the Permanent Select Committee on Intelligence of 
the House of Representatives a report on the results during the 
preceding fiscal year of the research program referred to in para-
graph (1). 
(3) There is authorized to be appropriated to the Department of 
Defense for fiscal year 1986 the sum of $590,000 to carry out the 
research program referred to in paragraph (1). 
(e) NON-APPUCATION OF SECTION.—This section does not apply— 
99 STAT. 728 
PUBLIC LAW 99-145—NOV. 8, 1985 
(1) to an individual assigned or detailed to the Central Intel-
ligence Agency or to any expert or consultant under a contract 
with the Central Intelligence Agency; 
(2) to (A) an individual employed by or assigned or detailed to 
the National Security Agency, (B) an expert or consultant under 
contract to the National Security Agency, (C) an employee of a 
contractor of the National Security Agency, or (D) an individual 
applying for a position in the National Security Agency; or 
(3) to an individual assigned to a space where sensitive 
cryptologic information is produced, processed, or stored. 
SEC. 1222. REDUCTION IN SECURITY CLEARANCE BACKLOG 
(a) FINDING.—The Congress finds that there are many persons 
with a security clearance at a level of top secret or above who have 
not been investigated for more than five years as a result of delays 
in the program of the Department of Defense for periodic 
reinvestigations of persons with clearance at such a level. 
(b) REDUCTION IN CLEARANCE BACKLOG.—The Secretary of Defense 
shall take such action as may be necessary to achieve a substantial 
reduction in the backlog under such periodic-reinvestigation pro-
gram by the end of fiscal year 1986. The Secretary should seek to 
obtain a 25-percent reduction in that bstcklog in fiscal year 1986. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be 
appropriated for fiscal year 1986 for operation and maintenance of 
defense agencies $25,000,000 which may be used only for the purpose 
of carrying out actions required by subsection (b). 
(d) REPORT.—Not later than April 1, 1986, the Secretary shall 
submit to Congress a report on the level and manner of obligating 
the funds appropriated pursuant to the authorization in subsection 
(c) and on the level of reductions of the backlog achieved at the time 
of the report. Such report also shall include a description of 
resources and the funding level which would be needed in order to 
reduce by the end of fiscal year 1987 such backlog by 50 percent 
below the level of such backlog on the date of the enactment of this 
Act. 
SEC. 1223. AUTHORITY FOR INDEPENDENT CRIMINAL INVESTIGATIONS BY 
NAVY AND AIR FORCE INVESTIGATIVE UNITS 
The Secretary of the Navy shall prescribe regulations providing to 
the Naval Investigative Service authority to initiate and conduct 
criminal investigations on the authority of the Director of the Naval 
Investigative Service. The Secretary of the Air Force shall prescribe 
regulations providing to the Air Force Office of Special Investiga-
tions authority to initiate and conduct criminal investigations on 
the authority of the Commander of the Air Force Office of Special 
Investigations. 
Alcohol and 
SEC. 1224. ESTABLISHMENT OF MINIMUM DRINKING AGE ON MILITARY 
alcoholic 
INSTALLATIONS 
beverages. 
(a) MINIMUM DRINKING AGE BASED ON STATE LAW.—Section 2683 
of title 10, United States Code, is amended by adding at the end 
thereof the following new subsection: 
"(cXD Except as provided in paragraphs (2) and (3), the Secretary 
concerned shall establish and enforce £is the minimum drinking age 
on a military installation located in a State the age established by 
the law of that State as the State minimum drinking age. 
"(2XA) In the case of a military installation located— 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 729 
"(i) in more than one State; or 
"(ii) in one State but within 50 miles of another State or 
Mexico or Canada, 
the Secretary concerned may establish and enforce as the minimum 
drinking age on that military installation the lowest applicable age. 
"(B) In subparagraph (A), 'lowest applicable age' means the lowest 
minimum drinking age established by the law— 
"(i) of a State in which a military installation is located; or 
"(ii) of a State or jurisdiction of Mexico or Canada that is 
within 50 miles of such military installation. 
"(3)(A) The commanding officer of a military installation may 
waive the requirement of paragraph (1) if such commanding officer 
determines that the exemption is justified by special circumstances. 
"(B) The Secretary of Defense shall define by regulations what 
constitute special circumstances for the purposes of this paragraph. 
"(4) In this subsection: 
"(A) 'State' includes the District of Columbia. 
"(B) 'Minimum drinking age' means the minimum age or ages 
established for persons who may purchase, possess, or consume 
alcoholic beverages.". 
(b) CONFORMING AMENDMENTS.—(1) Subsection (b) of such section 
is amended by striking out "section" and inserting in lieu thereof 
"subsection (a)". 
(2) Section 6 of the 1951 Amendments to the Universal Military 
Training and Service Act (50 U.S.C. App. 473) is amended by strik-
ing out "The" in the first sentence and inserting in lieu thereof 
"Subject to section 2683(c) of title 10, United States Code, the". 
Ante, p. 728. 
(c) CLERICAL AMENDMENTS.—(1) The heading of section 2683 of 
title 10, United States Code, is amended to read as follows: 
"§ 2683. Relinquishment of legislative jurisdiction; minimum 
Alcohol and 
drinking age on military installations". 
alcoholic 
beverages. 
(2) The item relating to that section in the table of sections at the 
beginning of chapter 159 of such title is amended to read as follows: 
"2683. Relinquishment of legislative jurisdiction; minimum drinking age on military 
installations.". 
(d) EFFECTIVE DATE.—The amendments made by this section shall 
10 use 2683 
take effect 90 days after the date of the enactment of this Act. 
note. 
(e) REPORT.—(1) Not later than February 1, 1986, the Secretary of 
Defense shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on— 
(A) the effects of the provisions of section 2683(c) of title 10, 
United States Code, as added by subsection (a); and 
Ante, p. 728. 
(B) the feasibility and desirability of permitting the sale to 
members of the Armed Forces who have not attained the mini-
mum drinking age established on a military installation under 
such section, in establishments located on the military installa-
tion, of— 
(i) low alcohol malt beverages (2.0 percent or less alcohol 
by weight); and 
(ii) low alcohol wine beverages (6.0 percent or less alcohol 
by volume). 
(2) The report required by paragraph (1) shall include— 
(A) comments and recommendations by the 
Secretary 
concerning the feasibility and desirability of permitting the sale 
of the low alcohol beverages described in paragraph (IXB); 
99 STAT. 730 
PUBLIC LAW 99-145—NOV. 8, 1985 
Motor vehicles. 
(B) an analysis of any effects of such sale on— 
(i) the incidence of members of the Armed Forces or their 
dependents operating motor vehicles while under the influ-
ence of alcohol or drugs; and 
(ii) the incidence of persons operating motor vehicles on a 
military installation while under the influence of alcohol or 
drugs; 
Motor vehicles. 
(C) an analysis of any effects of the provisions of section 2683(c) of 
Ante, p. 728. 
title 10, United States Code, as added by subsection (a), on— 
(i) the incidence of members of the Armed Forces or their 
dependents operating motor vehicles while under the influ-
ence of alcohol or drugs; and 
(ii) the incidence of persons operating motor vehicles on a 
military installation while under the influence of alcohol or 
drugs; and 
(D) any comments or recommendations the Secretary may 
consider appropriate, including any proposal for legislative 
action. 
SEC. 1225. CASH AWARDS FOR DISCLOSURES LEADING TO COST SAVINGS 
(a) MEMBERS OF THE ARMED FORCES.—(1) Section 1124 of title 10, 
United States Code, is amended by inserting "disclosure," in subsec-
tions (a), (b), (c), and (f) before "suggestion". 
(2XA) The heading of such section is amended to read as follows: 
"§ 1124. Cash awards for disclosures, suggestions, inventions, and 
scientinc achievements". 
(B) The item relating to such section in the table of sections at the 
beginning of chapter 57 of such title is amended to read as follows: 
"1124. Cash awards for disclosures, suggestions, inventions, and scientific achieve-
ments.". 
(3) The amendments made by this subsection shall take effect on 
October 1,1985. 
(b) CiviUAN EMPLOYEES.—(1)(A) Section 4514 of title 5, United 
States Code, is amended to read as follows: 
"§ 4514. Expiration of authority; reporting requirement 
"(a) No award may be made under this subchapter after Septem-
ber 30,1988. 
"(bXD Not later than March 15, 1988, the Comptroller General 
shall submit to Congress a report on the effectiveness of the awards 
program under this subchapter. 
"(2) The report shall include the views of the Comptroller General 
as to whether the authority to make awards under this subchapter 
should be continued after September 30, 1988, and, if so, whether 
any modification in such authority would be appropriate.". 
(B) The item relating to such section in the table of sections for 
chapter 45 of such title is amended to read as follows: 
"4514. Expiration of authority; reporting requirement.". 
5 use 4512. 
(2) Section 4512 of such title is amended by striking out subsection 
(0. 
10 use 1124 
note. 
Awards. 
Report. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 731 
PART C—CJONTRACTING OUT FOR PERFORMANCE OF CERTAIN 
FUNCTIONS 
SEC. 1231. SPECIFICATION OF CORE-LOGISTICS FUNCTIONS SUBJECT TO 
10 USC 2304 
CONTRACTING-OUT LIMITATION 
note. 
(a) IN GENERAL.—A function of the Department of Defense 
described in subsection (b) shall be deemed for the purposes of 
section 3O70b) of the Department of Defense Authorization Act, 1985 
(Public Law 98-525; 98 Stat. 2514), to be a logistics activity identified 
by the Secretary of Defense under section 307(a)(2) of such Act as 
necessary to maintain the logistics capability of the Department of 
Defense described in section 307(aXl) of such Act. 
(b) DESCRIPTION OF FUNCTIONS.—The functions to which subsection 
(a) applies are the following: 
(1) Depot-level maintenance of mission-essential materiel at 
the following activities of the Army: 
Anniston Army Depot, Anniston, Alabama. 
Corpus Christi Army Depot, Corpus Christi, Texas. 
Crane Army Ammunition Plant, Crane, Indiana. 
Fort Wingate Army Depot, Gallup, New Mexico. 
Letterkenny Army Depot, Letterkenny, Pennsylvania. 
Lexington-Blue Grass Army Depot, Lexington, Kentucky. 
McAlester Army Ammunition Plant, McAlester, Okla-
homa. 
New Cumberland Army Depot, Harrisburg, Pennsyl-
vania. 
Pueblo Army Depot, Pueblo, Colorado. 
Red River Army Depot, Texarkana, Texas. 
Rock Island Arsenal, Rock Island, Illinois. 
Sacramento Army Depot, Sacramento, California. 
Savanna Army Depot, Savanna, Illinois. 
Seneca Army Depot, Romulus, New York. 
Sharpe Army Depot, Stockton, California. 
Sierra Army Depot, Herlong, California. 
Tobyhanna Army Depot, Tobyhanna, Pennsylvania. 
Tooele Army Depot, Tooele, Utah. 
Umatilla Army Depot, Umatilla, Oregon. 
Watervliet Arsenal, Watervliet, New York. 
(2) Depot-level maintenance of mission-essential materiel at 
the following activities of the Navy: 
Naval Air Rework Facility, Alameda, California. 
Naval Air Rework Facility, Cherry Point, North Caro-
lina. 
Naval Air Rework Facility, Jacksonville, Florida. 
Naval Air Rework Facility, Norfolk, Virginia. 
Naval Air Rework Facility, Pensacola, Florida. 
Naval Air Rework Facility, North Island, San Diego, 
California. 
Naval Aviation Supply Office, Philadelphia, Pennsyl-
vania. 
Naval Construction Battalion Center, Davisville, Rhode 
Island. 
Naval Construction Battalion Center, Gulfport, Mis-
sissippi. 
Naval Construction Battalion Center, Port Hueneme, 
California. 
99 STAT. 732 
PUBLIC LAW 99-145—NOV. 8, 1985 
Naval Electronics Systems Engineering Center, San 
Diego, California. 
Naval Ordnance Station, Indian Head, Maryland. 
Naval Ordnance Station, Louisville, Kentucky. 
Naval Shipyard, Charleston, South Carolina. 
Naval Shipyard, Norfolk, Virginia. 
Naval Shipyard, Long Beach, California. 
Naval Shipyard, Mare Island, California. 
Naval Shipyard, Philadelphia, Pennsylvania. 
Naval Shipyard, Portsmouth, Kittery, Maine. 
Naval Shipyard, Pearl Harbor, Hawaii. 
Naval Shipyard, Puget Sound, Bremerton, Washington. 
Naval Ship Repair Facility, Guam. 
Naval Supply Center, Charleston, South Carolina. 
Naval Supply Center, Jacksonville, Florida. 
Naval Supply Center, Norfolk, Virginia. 
Naval Supply Center, Oakland, California. 
Naval Supply Center, Pearl Harbor, Hawaii. 
Naval Supply Center, Puget Sound, Bremerton, Wash-
ington. 
Naval Supply Center, San Diego, California. 
Naval Undersea Warfare Engineering Station, Keyport, 
Washington. 
Naval Weapons Station, Charleston, South Carolina. 
Naval Weapons Station, Colts Neck, Earle, New Jersey. 
Naval Weapons Station, Concord, California. 
Naval Weapons Station, Seal Beach, California. 
Naval Weapons Station, Yorktown, Virginia. 
Naval Weapons Station, Crane, Indiana. 
Navy Ships Parts Control Center, Mechanicsburg, Penn-
sylvania. 
TRIDENT Refit Facility, Bangor, Bremerton, Washing-
ton. 
(3) Depot-level maintenance of mission-essential materiel at 
the following activities of the Marine Corps: 
Marine Corps Logistics Base, Albany, Georgia. 
Marine Corps Logistics Base, Barstow, California. 
(4) Depot-level maintenance of mission-essential materiel at 
the following activities of the Air Force: 
Aerospace Guidance and Metrology Center, Newark Air 
Force Station, Ohio. 
Ogden Air Logistics Center, Hill Air Force Base, Utah. 
Oklahoma City Air Logistics Center, Tinker Air Force 
Base, Oklahoma. 
Sacramento Air Logistics Center, McClellan Air Force 
Base, California. 
San Antonio Air Logistics Center, Kelly Air Force Base, 
Texas. 
Warner Robins Air Logistics Center, Robins Air Force 
Base, Georgia. 
(5) Depot-level maintenance of mission-essential equipment at 
the following activities of the Defense Logistics Agency: 
Defense Construction Supply Center, Columbus, Ohio. 
Defense Depot Mechanicsburg, Mechanicsburg, Penn-
sylvania. 
Defense Depot Memphis, Memphis, Tennessee. 
Defense Depot Ogden, Ogden, Utah. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 733 
Defense Depot Tracy, Tracy, California. 
Defense Electronics Supply Center, Da3^n, Ohio. 
Defense General Supply Center, Richmond, Virginia. 
Defense Industrial Plant Equipment Center, Memphis, 
Tennessee. 
Defense Industrial Supply Center, Philadelphia, Penn-
sylvania. 
Defense Logistics Service Center, Battle Creek, Michigan. 
Defense Subsistence Office, Bayonne, New Jersey. 
(6) Depot-level maintenance of mission-essential materiel at 
the following activities of the Defense Mapping Agency: 
Aerospace Center, Kansas City Field Office, Kansas City, 
Missouri. 
Aerospace Center, St. Louis AFS, Missouri. 
Office of Distribution Services, Brookmont, Maryland. 
Office of Distribution Services, Clearfield, Utah. 
Office of Distribution Services, Philadelphia, Pennsyl-
vania. 
(c) MATTERS INCLUDED WITHIN SPECIFIED FUNCTIONS.—The func-
tions described in subsection (b) include— 
(1) the facilities and equipment at the activities listed in that 
subsection; and 
(2) the Government personnel who manage and perform the 
work at those activities. 
(d) EXCLUSION OF CERTAIN FUNCTIONS.—Subsection (b) does not 
include any function that on the date of the enactment of this Act— 
(1) is being performed under contract by non-Government 
personnel; or 
(2) has been announced to Congress for review for conversion 
to performance by non-Government personnel under Office of 
Management and Budget Circular A-76. 
(e) DEFINITION.—For the purposes of this section, the term "mis-
sion-essential materiel" means all materiel which is authorized and 
available to combat, combat support, combat service support, and 
combat readiness training forces to accomplish their assigned 
mission. 
(f) TECHNICAL AMENDMENT.—Section 307(bX4) of the Department 
lo use 2304 
of Defense Authorization Act, 1985 (Public Law 98-525; 98 Stat. note. 
2515), is amended by striking out "30-day period" and inserting in 
lieu thereof "20-day period". 
SEC. 1232. ONE-YEAR EXTENSION OF PROHIBITION ON CONTRACTING FOR 
THE 
PERFORMANCE OF FIREFIGHTING AND SECURITY 
FUNCTIONS 
(a) EXTENSION OF PROHIBITION.—Section 1221(a) of the Department 
of Defense Authorization Act, 1984 (Public Law 98-94; 97 Stat. 691), 
is amended by striking out "October 1, 1985" and inserting in lieu 
thereof "October 1,1986". 
(b) REPORT.—(1) The Secretary of Defense shall submit to Congress 
a written report containing— 
(A) an assessment of the special needs of the Department of 
Defense with respect to firefighting and base security; and 
(B) an assessment of how those needs are met by both Federal 
employees and contract personnel. 
(2) The report shall be prepared in consultation with the Adminis-
trator of the United States Fire Administration of the Federal 
99 STAT. 734 
PUBLIC LAW 99-145—NOV. 8, 1985 
Emergency Management Agency and shall include the comments of 
the Administrator on the report. 
(3) The report shall be submitted not later than March 1, 1986. 
SEC. 1233. SERVICES AND ACTIVITIES TO BE PERFORMED B
Y NON-
GOVERNMENT PERSONNEL 
10 use 2304 
The Secretary of Defense shall take such action as may be nec-
note. 
essary to ensure that, in each case in which it has been determined 
in accordance with law that performance of a service or activity by 
non-Government personnel would be cost effective and in the best 
interests of national security, such service or activity is performed 
by non-Government personnel. 
SEC. 1234. INCREASE IN THRESHOLDS APPLICABLE TO STATUTORY 
CONTRACTING-OUT PROCEDURES 
(a) INCREASE IN NUMBERS.—Section 502 of the Department of 
Defense Authorization Act, 1981 (10 U.S.C. 2304 note), is amended— 
(1) in subsection (a)(2)(D)(i), by striking out "50 employees" 
and inserting in lieu thereof "75 employees"; and 
(2) in subsection (d), by striking out "10 or fewer" and insert-
ing in lieu thereof "40 or fewer". 
10 use 2304 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
J^ote- 
shall take effect on January 1,1986. 
PART D—ECONOMY AND EFFICIENCY 
SEC. 1241. FLEXTIME FOR FEDERAL CONTRACTOR EMPLOYEES 
(a) AMENDMENTS TO CONTRACT WORK HOURS AND SAFETY STAND-
ARDS ACT.—(1) Subsection (a) of section 102 of the Contract Work 
Hours and Safety Standards Act (40 U.S.C. 328(a)) is amended to 
read as follows: 
"(a) Notwithstanding any other provision of law, the wages of 
every laborer and mechanic employed by any contractor or sub-
contractor in his performance of work on any contract of the 
character specified in section 103 shall be computed on the basis of a 
standard workweek of forty hours, and work in excess of such 
standard workweek shall be permitted subject to provisions of this 
section. For each workweek in which any such laborer or mechanic 
is so employed such wages shall include compensation, at a rate not 
less than one and one-half times the basic rate of pay, for all hours 
worked in excess of forty hours in the workweek." 
(2) Section 102(b) of such Act is amended— 
(A) by striking out "eight hours in any calendar day or in 
excess o f in paragraph (1); and 
(B) by striking out "eight hours or in excess of" in paragraph 
(2). 
(b) AMENDMENT TO WALSH-HEALEY ACT.—Subsection (c) of the first 
section of the Act entitled "An Act to provide conditions for the 
purchase of supplies and the making of contracts by the United 
States, and for other purposes" (41 U.S.C. 35(c)), commonly known as 
the Walsh-Healey Act, is amended by striking out "eight hours in 
any one day or in excess of ". 
41 use 35 note. 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
take effect on January 1,1986. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 735 
SEC. 
1242. PROHIBITION ON ESTABLISHMENT OF PAY RATES FOR 
PREVAILING RATE EMPLOYEES OF THE DEPARTMENT OF 
DEFENSE USING SURVEYS OF WAGES PAID OUTSIDE THE 
LOCAL WAGE AREA 
(a) AMENDMENT TO SECTION 5343 OF TITLE 5, U.S.C.—Paragraph (2) 
of section 5343(d) of title 5, United States Code, is amended to read 
as follows: 
"(2) When the lead agency determines that there is a number of 
comparable positions in private industry insufficient to establish the 
wage schedules and rates, such agency shall— 
"(A) establish the wage schedules and rates to be applicable to 
prevailing rate employees other than prevailing rate employees 
of the Department of Defense on the basis of— 
"(i) local private industry rates; and 
"(ii) rates paid for comparable positions in private indus-
try in the nearest wage area that such agency determines is 
most similar in the nature of its population, employment, 
manpower, and industry to the local wage area for which 
the wage survey is being made; and 
"(B) establish the wage schedules and rates to be applicable to 
prevailing rate employees of the Department of Defense only on 
the basis of local private industry rates.". 
(b) PROHIBITION ON REDUCTION OF PAY.—The rate of pay payable 
to a prevailing rate employee employed by the Department of 
Defense on the day before the date of enactment of this Act may not 
be reduced by reason of the amendment made by subsection (a). 
TITLE XIII—TECHNICAL AND CLERICAL 
AMENDMENTS 
5 use 5343 note. 
SEC. 
1301. ELIMINATION 
OF CERTAIN STATUTORY 
GENDER-BASED 
DISTINCTIONS 
(a) GENERAL MILITARY LAW.—(1) Section 772(c) of title 10, United 
States Code, is amended by striking out the second sentence. 
(2) Section 1431(b)(3) of such title is amended by striking out 
"widow" and inserting in lieu thereof "surviving spouse". 
(b) ARMY.—(1)(A) Section 3683 of title 10, United States Code, is 
repealed. 
(B) The table of sections at the beginning of chapter 353 of such 
title is amended by striking out the item relating to section 3683. 
(C) The repeal made by subparagraph (A) shall not apply in the 
case of a person who performed active service described in section 
3683 of title 10, United States Code, as such section was in effect on 
the day before the date of the enactment of this Act. 
(2XA) Section 3963 of such title is repealed. 
(B) The table of sections at the beginning of chapter 369 of such 
title is amended by striking out the item relating to section 3963. 
(C) The repeal made by subparagraph (C) shall not apply in the 
case of a member of the Regular Army described in section 3963 of 
title 10, United States Code, as such section was in effect on the day 
before the date of the enactment of this Act. 
(3)(A) Section 4309(b) of such title is amended by striking out 
"males" and inserting in lieu thereof "persons". 
(B) Section 4313(a) of such title is amended by striking out "man" 
and inserting in lieu thereof "competitor". 
10 use 1431. 
Repeal. 
10 use 3683 
note. 
Repeal. 
10 use 3963. 
10 use 3963 
note. 
10 use 4309. 
10 use 4313. 
99 STAT. 736 
PUBLIC LAW 99-145—NOV. 8, 1985 
10 use 4651. 
(C) Section 4651 of such title is amended by striking out "male". 
10 use 4712. 
(4)(A) Section 4712(d) of such title is amended by striking out 
clauses (1) through (9) and inserting in lieu thereof the following: 
"(1) The surviving spouse or legal representative. 
"(2) A child of the deceased. 
"(3) A parent of the deceased. 
"(4) A brother or sister of the deceased. 
"(5) The next-of-kin of the deceased. 
"(6) A beneficiary named in the will of the deceased.". 
10 use 4713. 
(B) Section 4713(a)(2) of such title is amended by striking out 
clauses (A) through (I) and inserting in lieu thereof the following: 
"(A) The surviving spouse or legal representative. 
"(B) A child of the deceased. 
"(C) A parent of the deceased. 
"(D) A brother or sister of the deceased. 
"(E) The next-of-kin of the deceased. 
"(F) A beneficiary named in the will of the deceased.". 
(c) NAVY.—(1) Section 6160(a) of title 10, United States Code, is 
amended by striking out "enlisted man" and inserting in lieu 
thereof "enlisted member". 
10 use 6964. 
(2) Section 6964(e) of such title is amended by striking out "men" 
and inserting in lieu thereof "persons". 
10 use 7601. 
(3)(A) Section 7601(a) of such title is amended by striking out 
"widows" and inserting in lieu thereof "widows and widowers". 
(B) The heading of such section is amended to read as follows: 
"§ 7601. Sales: members of the naval service and Coast Guard; 
widows and widowers; civilian employees and other 
persons". 
(C) The item relating to section 7601 in the table of sections at the 
beginning of chapter 651 of such title is amended to read as follows: 
"7601. Sales: members of the naval service and eoast Guard; widows and widowers; 
civilian employees and other persons.". 
Repeal. 
(d) AiR FoRCE.—(1)(A) Section 8683 of title 10, United States Code, 
is repealed. 
(B) The table of sections at the beginning of chapter 853 of such 
title is amended by striking out the item relating to section 8683. 
10 use 8683 
(C) The repeal made by subparagraph (A) shall not apply in the 
note. 
case of a person who performed active service described in section 
8683 of title 10, United States Code, as such section was in effect on 
the day before the date of the enactment of this Act. 
Repeal. 
(2)(A) Section 8963 of such title is repealed. 
10 use 8963. 
(B) The table of sections at the beginning of chapter 869 of such 
title is amended by striking out the item relating to section 8963. 
10 use 8963 
(C) The repeal made by subparagraph (A) shall not apply in the 
note. 
case of an Air Force nurse or medical specialist described in section 
8963 of title 10, United States Code, as such section was in effect on 
the day before the date of the enactment of this Act. 
10 use 9651. 
(3) Section 9651 of such title is amended by striking out "male". 
10 use 9712. 
(4)(A) Section 9712(d) of such title is amended by striking out 
clauses (1) through (9) and inserting in lieu thereof the following: 
"(1) The surviving spouse or legal representative. 
"(2) A child of the deceased. 
"(3) A parent of the deceased. 
"(4) A brother or sister of the deceased. 
"(5) The next-of-kin of the deceased. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 737 
50 use app. 1591 
note. 
"(6) A beneficiary named in the will of the deceased.". 
(B) Section 9713(aX2) of such title is amended by striking out lO use 9713 
clauses (A) through (I) and inserting in lieu thereof the following: 
"(A) The surviving spouse or legal representative. 
"(B) A child of the deceased. 
"(C) A parent of the deceased. 
"(D) A brother or sister of the deceased. 
"(E) The next-of-kin of the deceased. 
"(F) A beneficiary named in the will of the deceased.". 
(e) WORLD WAR II ERA ARMY NURSES.—(1) The Act entitled "An Repeal. 
Act to authorize temporary appointment as officers in the Army of 
the United States of members of the Army Nurse Corps, female 
persons having the necessary qualifications for appointment in such 
corps, female dietetic and physical-therapy personnel of the Medical 
Department of the Army (exclusive of students and apprentices), 
and female persons having the necessary qualifications for appoint-
ment in such department £is female dietetic or physical-therapy 
personnel, and for other purposes", approved June 22, 1944 (58 Stat. 
324; 50 U.S.C. App. 1591 et seq.), is repealed. 
(2) The repeal made by paragraph (1) shall not apply in the case of 
any person appointed and assigned under the first section of the Act 
repealed by such paragraph, as such Act was in effect on the day 
before the date of the enactment of this Act. 
(f) SOLDIERS' AND AIRMEN'S HOME.—The first sentence of section 4 
of the Act entitled "An Act prescribing regulations for the Soldiers' 
Home located at Washington, in the District of Columbia, and for 
other purposes", approved March 3, 1883 (24 U.S.C. 52), is 
amended— 
(1) by striking out "wife" both places it appears and inserting 
in lieu thereof "spouse"; and 
(2) by striking out "his" and inserting in lieu thereof "such". 
(g) DEPENDENTS OF PERSONS MISSING IN ACTION.—Section 551(1XA) 
of title 37, United States Code, is amended by striking out "wife" 
and inserting in lieu thereof "spouse". 
SEC. 1302. TECHNICAL AMENDMENTS RELATING TO BENEFITS FOR CER-
TAIN DIA PERSONNEL 
(a) CiviuAN EMPLOYEES.—(1) Section 192 of title 10, United States 
Code, is transferred to the end of chapter 83 of such title, redesig- 10 USe 1601 et 
nated as section 1605, and amended— 
^eq. 
(A) in subsections (a) and (b), by striking out "Director of the 
Defense Intelligence Agency, on behalf of the Secretary of 
Defense," and inserting in lieu thereof "Secretary of Defense"; 
(B) in subsection (a)— 
(i) by striking out "military and"; 
(ii) by striking out "under sections 903, 705, and 2308" 
and inserting in lieu thereof "sections 705 and 903"; 
(iii) by striking out "22 U.S.C. 4025;"; and 
(iv) by striking out "; 22 U.S.C. 4083" and all that follows 
in such subsection and inserting in lieu thereof ", 4025, 
4083) and under section 5924(4) of title 5."; and 
(C) by striking out subsection (c) and redesignating subsection 
(d) as subsection (c). 
(2) The item relating to such section in the table of sections at the 
beginning of chapter 8 of such title is transferred to the end of the 
table of sections at the beginning of chapter 83 of such title and is 
amended by striking out "192" and inserting in lieu thereof "1605". 
99 STAT. 738 
PUBLIC LAW 99-145—NOV. 8, 1985 
10 use 1603. 
(3) Section 1603 of such title is amended by striking out "chapter" 
both places it appears and inserting in lieu thereof "sections 1601 
and 1602 of this title". 
(b) MEMBERS OF THE ARMED FORCES.—(1) Chapter 7 of title 37, 
United States Code, is amended by adding at the end thereof the 
following new section: 
37 use 431. 
"§ 431. Benefits for certain members assigned to the Defense Intel-
ligence Agency 
"(a) The Secretary of Defense may provide to members of the 
armed forces who are assigned to Defense Attache Offices and 
Defense Intelligence Agency Liaison Offices outside the United 
States and who are designated by the Secretary of Defense for the 
purposes of this subsection allowances and benefits comparable to 
those provided by the Secretary of State to officers and employees of 
the Foreign Service under paragraphs (2), (3), (4), (6), (7), (8), and (13) 
of section 901 and sections 705 and 903 of the Foreign Service Act of 
1980 (22 U.S.C. 4081 (2), (3), (4), (6), (7), (8), and (13), 4025, 4083) and 
under section 5924(4) of title 5. 
"(b) The authority of the Secretary of Defense to make payments 
under subsection (a) of this section is effective for any fiscal year 
only to the extent that appropriated funds are available for such 
purpose. 
"(c) Members of the armed forces may not receive benefits under 
both subsection (a) of this section and any other provision of this 
Regulations. 
title for the same purpose. The Secretary of Defense shall prescribe 
such regulations as may be necessary to carry out this subsection. 
"(d) Regulations prescribed pursuant to subsection (a) of this 
section shall be submitted to the Committee on Armed Services and 
the Permanent Select Committee on Intelligence of the House of 
Representatives and the Committee on Armed Services and the 
Select Committee on Intelligence of the Senate before such regula-
tions take effect.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following new item: 
"431. Benefits for certain members assigned to the Defense Intelligence Agency.". 
37 use 431 note. 
(3) The authority of the Secretary of Defense under section 431 of 
Supra. 
title 37, United States Code, as added by paragraph (1), may be 
delegated in accordance with section 133(d) of title 10, United States 
Code. 
SEC. 1303. GENERAL CLERICAL AMENDMENTS 
(a) AMENDMENTS TO TITLE 10.—Title 10, United States Code, is 
amended as follows: 
98 Stat. 2611. 
(1) Section 124(c)(2) is amended by inserting "of the Joint 
Chiefs of Staff' after "Chairman". 
(2) Section 139b(d)(3)(B)(i) is amended by inserting "percent" 
before the semicolon. 
(3) Section 140c(bXl) is amended by striking out "enactment of 
this section" and inserting in lieu thereof "September 24, 1983". 
98 Stat. 2614. 
(4XA) Section 520b is amended by striking out "enlistments" 
and inserting in lieu thereof "enlistment". 
(B) The item relating to such section in the table of sections at 
the beginning of chapter 31 is amended by striking out "enlist-
ments" and inserting in lieu thereof "enlistment". 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 739 
(5) Section 555 is amended by striking out "section 201(c)" and 
inserting in lieu thereof "section 201(b)". 
(6) The item relating to section 1043 in the table of sections at 
the beginning of chapter 53 is amended by striking out 
"Atomospheric" and inserting in lieu thereof "Atmospheric". 
(7) Section 1074a(a) is amended by striking out "prescribed 
98 Stat. 2869. 
by" and all that follows through "the following persons" and 
inserting in lieu thereof "prescribed by the administering 
Secretaries, the following persons". 
(8) Section 1085 is amended by indenting the first line of the 98 Stat. 2870. 
text of the section. 
(9) Section 1437(cX3XA) is amended by striking out "(notwith-
standing section 144 of this title)". 
(10) Section 1440 is amended by striking out "section 
1437(cX3)" and inserting in lieu thereof "section 1437(cX3XB)". 
(11) Section 1450 is amended— 
(A) by striking out "subsection (1)" in subsection (i) and 
inserting in lieu thereof "subsection (1X3XB)"; and 
(B) by striking out "(notwithstanding subsection (h))" in 
subsection (1X3XA). 
(12) Section 1489(a) is amended by striking out "Armed 
Forces" and inserting in lieu thereof "armed forces". 
(13) Section 
2304(aXlXB) is amended 
by striking out 98 Stat. 1187. 
"krocedures" and inserting in lieu thereof "procedures". 
(14) Paragraph (5) of section 2305(b) is reset full measure. 
(15) Section 2306 is amended— 
(A) by adding a period at the end of subsection (a); and 
(B) by striking out "of this title" in subsection (b). 
(16) Section 2310 is amended by inserting "this" after "2305 
of. 
(17) The heading of section 2691 is amended to read as follows: 
"§ 2691. Restoration of land used by permit or lease from other 
agencies". 
(18) Section 2821(b) is amended by striking out "paragraph" 
before the period at the end and inserting in lieu thereof 
"subsection . 
(19) Section 2852 is amended by striking out "section 3324(a) 
and (b)" and inserting in lieu thereof "subsections (a) and (b) of 
section 3324". 
(20XA) Section 3843(b) is amended by striking out "after 
July 1, I960,". 
(B) Sections 3848(a), 3851(a), and 3852 are amended by striking 
out "After July 1, 1960, each" and inserting in lieu thereof 
"Each". 
(21) Section 5985 is amended by striking out "the Act of 
March 4, 1911, ch. 265, 36 Stat. 1353, as amended," and insert-
ing in lieu thereof "section 1304 of the Merchant Marine Act, 
1936 (46 U.S.C. App. 1295c),". 
(22) Section 6148 is amended by redesignating subsection (e) 98 Stat. 2543. 
as subsection (d). 
(23) Section 7204(a) is amended— 
98 Stat. 2620. 
(A) by running "contribute, out o f in after "Secretary of 
the Navy may"; 
(B) by aligning clauses (1) through (4) so as to be cut in 
two ems; and 
99 STAT. 740 
PUBLIC LAW 99-145—NOV. 8, 1985 
(C) by aligning the matter after clause (4) flush with thev 
margin. 
(24XA) The heading of section 7309 is amended by striking out 
the fifth word. 
(B) The item relating to that section in the table of sections at 
the beginning of chapter 633 is amended by striking out the 
fifth word. 
(25) Section 7431(c) is amended— 
(A) by striking out "the" at the beginning of paragraphs 
(1), (2), and (3) and inserting in lieu thereof "The"; 
(B) by striking out the semicolons at the end of para-
graphs (1), (2), and (3) and inserting in lieu thereof periods; 
(C) by striking out "a summary" at the beginning of 
paragraph (4) and inserting in lieu thereof "A summary"; 
(D) by striking out "; and" at the end of paragraph (4) and 
inserting in lieu thereof a period; and 
(E) by striking out "such" at the beginning of paragraph 
(5) and inserting in lieu thereof "Such'. 
(26) The item relating to section 8202 in the table of sections 
at the beginning of chapter 831 is amended to read as follows: 
"8202. Air Force: strength in grade; general officers.". 
(27)(A) Section 8848(a) is amended by striking out "After 
June 30, 1960, each" and inserting in lieu thereof "Each". 
(B) Sections 8851(a) and 8852(a) are amended by striking out 
"After June 30, 1960, except" and inserting in lieu thereof 
"Except". 
(28) Section 944 lOt)) is amended by striking out "and" at the 
end of clause (8). 
(b) AMENDMENTS TO TITLE 37.—Title 37, United States Code, is 
amended as follows: 
(1) Section 203(a) is amended by inserting "or as otherwise 
prescribed by law" before the period. 
98 Stat. 2542. 
(2) Section 301(cXl) is amended by striking out the first 
comma after "(10)". 
(3) Sections 308g(f) and 308h(e) are amended by striking out 
"the date of the enactment of the Department of Defense 
Authorization Act, 1984" and inserting in lieu thereof "Septem-
ber 24,1983". 
(4) Section 312b(c) is amended by striking out "make an 
annual report to the House and Senate Armed Services 
Committees" and inserting in lieu thereof "submit to the 
Committees on Armed Services of the Senate and House of 
Representatives an annual report". 
98 Stat. 2537. 
(5) Section 402(b) is amended by inserting "or as otherwise 
prescribed by law" before the period at the end of the fourth 
sentence. 
(6) Section 403(a) is amended by inserting "or as otherwise 
prescribed by law" after "of this title". 
(7) The table of sections at the beginning of chapter 7 is 
amended— 
(A) by striking out the semicolon in the item relating to 
section 404 and inserting in lieu thereof a colon; 
(B) by striking out the item relating to section 405a and 
inserting in lieu thereof the following: 
"405a. Travel and transportation allowances: departure allowances."; 
and 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 741 
(C) by striking out the item relating to section 425 and 
inserting in lieu thereof the following: 
"425. United States Navy Band; United States Marine Band: allowances while on 
concert tour.". 
(8) The heading of section 405 is amended to read as follows: 
"§405. Travel and transportation allowances: per diem while on 
duty outside the United States or in Hawaii or Alaska". 
(9) Section 406(k) is amended by striking out "to carry out 
subsection (b)" and inserting in lieu thereof "for providing 
transportation of household effects of members of the armed 
forces under subsection (b)". 
(10) Section 429 is amended by inserting "(20 U.S.C. 921 et 
seq.)" after "Defense Dependents' Education Act of 1978". 
(11) Section 557(c) is amended by inserting "of this title" after 
"section 558" both places it appears. 
(12) Section 1006(h) is amended by striking out "section 
3324(a) and (b)" and inserting in lieu thereof "subsections (a) 
and (b) of section 3324". 
(13)(A) Section 1012 is amended— 
(i) by striking out "under sections 206 (a), (b), and (d), 
301(f), 309, 402(b) (last sentence), and 1002 of this title for 
pay" and inserting in lieu thereof "for the pay, under 
subsections (a), (b), and (d) of section 206, section 301(f), the 
last sentence of section 402(b), and section 1002 of this 
title,"; 
(ii) by striking out "Disbursements" and inserting in lieu 
thereof "All such disbursements"; and 
(iii) by striking out "under the" and inserting in lieu 
thereof "as prescribed in those". 
(B) The heading of that section is amended to read as follows: 
"§ 1012. Disbursement and accounting: pay of enlisted members of 
the National Guard". 
(C) The item relating to that section in the table of sections at 
the beginning of chapter 19 is amended to read as follows: 
"1012. Disbursement and accounting: pay of enlisted members of the National 
Guard.". 
(D) The amendments made by this paragraph shall take effect 
as if included in the enactment of section 2(i) of Public Law 
97-258. 
SEC. 1304. CLERICAL AMENDMENTS TO FEDERAL PROCUREMENT LAW 
(a) DEFENSE PROCUREMENT LAW.—Chapter 138 of title 10, United 
States Code, is amended as follows: 
(1) Sections 2321, 2322, 2323 (as amended by section 9610))), 
2324, 2325, 2326, 2327, and 2328 are redesignated as sections 
2341 through 2348, respectively. 
(2) Section 2329 is repealed. 
(3) Sections 2330 and 2331 are redesignated as sections 2349 
and 2350, respectively. 
(4) Sections 2341 and 2342 (as so redesignated) are amended by 
striking out "section 2323" and inserting in lieu thereof "section 
2343". 
(5) Section 2323 (as so redesignated) is amended— 
37 use 1012 
note. 
96 Stat. 1052. 
98 Stat. 2597, 
2598. 
10 use 
2324-2328. 
Repeal. 
10 use 2330, 
2331. 
99 STAT. 742 
PUBLIC LAW 99-145—NOV. 8, 1985 
(A) by striking out "section 2321" both places it appears 
and inserting in lieu thereof "section 2341"; and 
(B) by striking out "section 2322" both places it appears 
and inserting in lieu thereof "section 2342". 
(6) The table of sections at the beginning of such chapter is 
amended— 
(A) by striking out the item relating to section 2329; and 
(B) by redesignating the remaining items in the table to 
reflect the redesignations made by paragraphs (1) and (3). 
10 use 2213. 
(b) CONFORMING AMENDMENT.—Section 2213(e)(2) of such title is 
amended by striking out "section 2331" and inserting in lieu thereof 
"section 2350". 
(c) CIVILIAN AGENCY PROCUREMENT.—The Federal Property and 
Administrative Services Act of 1949 is amended as follows: 
98 Stat. 1182. 
(1) Section 111(h)(3)(A) (40 U.S.C. 759(h)(3)(A)) is amended by 
striking out "Board" and inserting in lieu thereof "board". 
98 Stat. 3086. 
(2) Section 303(f)(1)(C) (41 U.S.C. 253(f)(1)(C)) is amended by 
striking out "Any" and inserting in lieu thereof "any". 
(3) Section 303(g)(1) (41 U.S.C. 253(g)(1)) is amended by insert-
ing a comma after "1984". 
41 use 253c- 
(4)(A) Sections 303D, 303E, 303F, 303G, and 303H (as added by 
253g. 
title II of the Small Business and Federal Procurement Com-
98 Stat. 3068. 
petition Enhancement Act of 1984 (Public Law 98-577)) are 
redesignated as sections 303C, 303D, 303E, 303F, and 303G, 
respectively. 
(B) The items relating to those sections in the table of con-
tents for such Act are redesignated to reflect the redesignations 
by subparagraph (A). 
(d) MILITARY AND CIVILIAN PROCUREMENT.—Section 3551(1) of title 
98 Stat. 1199. 
31, United States Code, is amended by striking out "executive 
agency" and inserting in lieu thereof "Federal agency". 
TITLE XIV—GENERAL PROVISIONS 
PART A—FINANCIAL MATTERS 
SEC. 1401. 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 
Act between any such authorizations (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 trans-
fer authorizations— 
(1) may only be used to provide authority for items that have 
a higher priority than the items from which authority is trans-
ferred; and 
(2) may not be used to provide authority for an item that has 
been denied authorization by Congress. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 743 
(c) NOTICE TO CONGRESS.—The Secretary of Defense shall promptly 
notify Congress of transfers made under the authority of this 
section. 
SEC. 1402. AUTHORIZATION OF TRANSFERS FOR FY85 PAY SUPPLEMENTAL 
There is authorized to be transferred to, and merged with, 
amounts appropriated to the Department of Defense for operation 
and maintenance and for military personnel for fiscal year 1985 
such sums as may be necessary to provide for civilian and military 
pay raises provided by law. Such amounts shall be derived from 
amounts previously appropriated to the Department of Defense 
remaining available for obligation and no longer required for the 
purposes for which they were originally provided. 
Transfers 
authorized by this section may be made only to the extent provided 
in appropriation Acts. 
SEC. 1403. SPECIAL DEFENSE ACQUISITION FUND 
Section 138(g) of title 10, United States Code, is amended by 
striking out "$300,000,000" and all that follows and inserting in lieu 
thereof "$1,000,000,000.". 
SEC. 1404. REVISIONS TO DEFENSE BUDGET PLAN 
(a) REVISED PLANS.—The Secretary of Defense shall submit to Report. 
Congress a report containing— 
(1) a budget plan for the Department of Defense for fiscal 
years 1987 through fiscal year 1990 in which the total amount of 
new budget authority proposed for the Department for each 
fiscal year is not more than three percent over the amount of 
new budget authority proposed for that Department for the 
previous fiscal year, adjusted for the official inflation projection 
for the fiscal year concerned; and 
(2) a second budget plan for the Department for the fiscal 
years referred to in clause (1) in which the total amount of new 
budget authority proposed for the Department for each fiscal 
year is not more than the amount of new budget authority 
proposed for that Department for the previous fiscal year, 
adjusted for the official inflation projection for the fiscal year 
concerned. 
(b) BASEUNE.—The budget plans required by subsection (a) shall 
be based on the levels of authorizations of appropriations for the 
Department of Defense for fiscal year 1986 provided by this and any 
other Act. 
(c) MATTERS TO BE INCLUDED.—The plans included in the report 
under subsection (a) shall include the following: 
(1) A single amount for the amount of new budget authority 
proposed for each appropriation account of the Department of 
Defense, except that the amount of such new budget authority 
for the procurement appropriation accounts shall be shown at 
the budget-activity level. 
(2) The annual procurement plan for each of the fiscal years 
covered for each major defense acquisition program, as defined 
in section 139a(a) of title 10, United States Code. 
(d) DEADUNE FOR SUBMISSION.—The report required by subsection 
(a) shall be submitted not later than 60 days after the date of the 
enactment of this Act. 
99 STAT. 744 
PUBLIC LAW 99-145—NOV. 8, 1985 
31 use 1105 
SEC. 1405. TWO-YEAR BUDGET CYCLE FOR THE DEPARTMENT OF DE-
note. 
FENSE 
(a) FINDINGS.—The Congress finds that the programs and activi-
ties of the Department of Defense could be more effectively and 
efficiently planned and managed if funds for the Department were 
provided on a two-year cycle rather than annually. 
(b) REQUIREMENT FOR TWO-YEAR BUDGET PROPOSAL.—The Presi-
dent shall include in the budget submitted to the Congress pursuant 
98 Stat. 2324. 
to section 1105 of title 31, United States Code, for fiscal year 1988 a 
single proposed budget for the Department of Defense and related 
agencies for fiscal years 1988 and 1989. Thereafter, the President 
shall submit a proposed two-year budget for the Department of 
Defense and related agencies every other year. 
(c) REPORT.—Not later than April 1,1986, the Secretary of Defense 
shall submit to the Committees on Armed Services and on Appro-
priations of the Senate and House of Representatives a report 
containing the Secretary's views on the following: 
(1) The advantages and disadvantages of operating the 
Department of Defense and related agencies on a two-year 
budget cycle. 
(2) The Secretary's plans for converting to a two-year budget 
cycle. 
(3) A description of any impediments (statutory or otherwise) 
to converting the operations of the Department of Defense and 
related agencies to a two-year budget cycle beginning with fiscal 
year 1988. 
SEC. 1406. REPORT ON BUDGETING FOR INFLATION 
(a) REPORT ON SAVINGS FROM LOWER INFLATION.—Not later than 
60 days after the date of the enactment of this Act, the Secretary of 
Defense shall submit to Congress a report containing an explanation 
of what the Department of Defense does in any fiscal year with 
funds that are not expended as a result of a decrease in the 
anticipated rate of inflation during that year. 
(b) PROPOSALS FOR NEW BUDGET SYSTEM FOR INFLATION ALLOW-
ANCE.—The Secretary shall include in the report under subsection 
(a) a proposal, or alternative proposals, for a budget system under 
which— 
(1) funds that are appropriated to the Department of Defense 
for any fiscal year for procurement or for research, develop-
ment, test, and evaluation would be appropriated to the Depart-
ment without the addition of an amount for anticipated infla-
tion during such fiscal year; and 
(2) requests would be made to Congress at the end of the fiscal 
year for any additional funds made necessary by reason of 
inflation during the fiscal year. 
(c) RECOMMENDATIONS.—The Secretary shall include in such 
report— 
(1) the Secretary's recommendations for procedures that 
would effectively implement a proposal submitted under subsec-
tion (b); and 
(2) a discussion of the advantages and disadvantages of 
instituting such a proposal, together with any other comments 
and recommendations that the Secretary considers appropriate. 
PUBLIC LAW 99-145—NOV, 8, 1985 
99 STAT. 745 
SEC. 1407. REPORT OF UNOBLIGATED BALANCES 
10 USC 133 note. 
(a) REQUIRED REPORTS.—The Secretary of Defense shall submit to 
the Committees on Armed Services of the Senate and House of 
Representatives reports containing an estimate of the amount of 
funds in each appropriation account of the Department of Defense 
that at the time of the report— 
(1) is available for obligation; and 
(2) is in excess of the amount needed to carry out the pro-
grams for which the funds were appropriated. 
(b) MATTERS TO BE INCLUDED.—Each estimate under subsection (a) 
shall include amounts attributable to— 
(1) inflation savings; 
(2) foreign currency savings; 
(3) excess working capital fund cash; and 
(4) all other savings. 
(c) UNANTICIPATED INCREASES.—The report shall also identify un-
anticipated cost increases resulting from adverse economic trends. 
(d) SUBMISSION OF REPORT.—The reports shall be submitted to 
Congress each year with the President's budget for the next fiscal 
year, with the April Budget Update, and with the Mid-Session 
Budget Review. However, the first such report shall be submitted 
not later than 30 days after the date of the enactment of this Act. 
SEC. 1408. AUTHORIZATION OF APPROPRIATIONS FOR PURCHASE OF 
FOREIGN CURRENCIES 
There is hereby authorized to be appropriated for fiscal year 1986 
the amount of $2,100,000 for the purchase of foreign currencies from 
the Treasury Department to pay expenses incurred in carrying out 
programs of the Department of Defense. 
PART B—CHEMICAL WEAPONS 
SEC. 1411. CONDITIONS ON SPENDING FUNDS FOR BINARY CHEMICAL 
MUNITIONS 
(a) LIMITATION ON FY86 FUNDS.—Funds appropriated pursuant to 
authorizations of appropriations in title I may not be used— 
(1) for procurement or assembly of binary chemical munitions 
(or components of such munitions); or 
(2) for establishment of production facilities necessary for 
procurement or assembly of binary chemical munitions (or 
components of such munitions), 
except in accordance with subsections (b) and (c). 
(b) NATO CONSULTATION.—Subject to subsection (c), funds re-
ferred to in subsection (a) may be used for procurement or assembly 
of binary chemical munitions or for the establishment of production 
facilities necessary for the procurement or assembly of binary 
chemical munitions (or components of such munitions) if the Presi-
dent certifies to Congress that the United States— 
(1) has developed a plan under which United States binary 
chemical munitions can be deployed under appropriate contin-
gency plans to deter chemical weapons attacks against the 
United States and its allies; and 
(2) has consulted with other member nations of the North 
Atlantic Treaty Organization (NATO) on that plan. 
A plan under clause (1) shall be developed in cooperation with the 
Supreme Allied Commander, Europe. 
99 STAT. 746 
PUBLIC LAW 99-145—NOV. 8, 1985 
(c) CONDITIONS FOR FINAL ASSEMBLY.—Funds referred to in subsec-
tion (a) may not be used for the final assembly of complete binary 
chemical munitions before October 1,1987, and may only be used for 
such purpose on or after that date if— 
(1) a mutually verifiable international agreement concerning 
binary and other similar chemical munitions has not been 
entered into by the United States by that date; 
(2) the President, after that date, transmits to Congress a 
certification that— 
Defense and 
(A) final assembly of such complete munitions is neces-
national 
sitated by national security interests of the United States 
^®*^""*y- 
and the interests of other NATO member nations; 
(B) performance specifications and handling and storage 
safety specifications established by the Department of 
Defense with respect to such munitions will be met or 
exceeded; 
(C) applicable Federal safety requirements will be met or 
exceeded in the handling, storage, and other use of such 
munitions; and 
(D) the plan of the Secretary of Defense for destruction of 
existing United States chemical warfare stocks developed 
Post, p. 747. 
pursuant to section 1412 (which shall, if not sooner 
transmitted to Congress, accompany such certification) is 
ready to be implemented; 
(3) final assembly is carried out only after the end of the 60-
day period beginning on the date such certification is received 
by the Congress; 
(4) the plan of the Secretary of Defense for land-based storage 
of such munitions within the United States during peacetime 
provides that the two components that constitute a binary 
chemical munition are to be stored in separate States; and 
(5) the plan of the Secretary of Defense for the transportation 
of such munitions within the United States during peacetime 
provides that the two components that constitute a binary 
munition are transported separately. 
(d) SENSE OF CONGRESS.—It is the sense of Congress that existing 
unitary chemical munitions currently stored in the United States 
and in European member nations of NATO should be replaced by 
modern, safer binary chemical munitions. 
(e) REPORT.—Not later than October 1, 1986, the President shall 
submit to Congress a report describing the results of consultations 
among NATO member nations concerning the organization's chemi-
cal deterrent posture. The report shall include descriptions of any 
consultations concerning— 
(1) efforts to provide key civilian workers at military support 
facilities in Europe— 
(A) with personal and collective equipment to protect 
against the use of chemical munitions; and 
(B) with the training required for the use of such 
equipment; 
(2) efforts to upgrade the chemical reconnaissance, decon-
tamination, and protective capabilities of the military forces of 
each NATO member nation to a level adequate to meet the 
chemical threat identified in NATO intelligence estimates; 
(3) efforts to initiate a NATO-wide study of measures required 
to protect ports, airfields, logistics centers, and command and 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 747 
control facilities in European member nations of NATO against 
chemical attack; and 
(4) efforts to initiate a NATO-wide study of equitable and 
efficient sharing among NATO member nations of responsibil-
ities with regard to deterring the use of chemical munitions in 
Europe. 
SEC. 1412. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL 50 USC 1521. 
AGENTS AND MUNITIONS 
. (a) IN GENERAL.—(1) Notwithstanding any other provision of law, 
the Secretary of Defense (hereinafter in this section referred to as 
the "Secretary") shall, in accordance with the provisions of this 
section, carry out the destruction of the United States' stockpile of 
lethad chemical agents and munitions that exists on the date of the 
enactment of this Act. 
(2) Such destruction shall be carried out in conjunction with the 
acquisition of binary chemical weapons for use by the Armed Forces. 
(b) DATE FOR COMPLETION.—(1) Except as provided by paragraphs 
(2) and (3), the destruction of such stockpile shall be completed by 
September 30,1994. 
(2) If a treaty banning the possession of chemical agents and 
munitions is ratified by the United States, the date for completing 
the destruction of the United States' stockpile of such agents and 
munitions shall be the date established by such treaty. 
(3XA) In the event of a declaration of war by the Congress or of a 
national emergency by the President or the Congress or if the 
Secretary of Etefense determines that there has been a significant 
delay in the acquisition of an adequate number of binary chemical 
weapons to meet the requirements of the Armed Forces (as defined 
by the Joint Chiefs of Staff as of September 30, 1985), the Secretary 
may defer, beyond September 30, 1994, the destruction of not more 
than 10 percent of the stockpile described in subsection (aXl). 
(B) The Secretary shall transmit written notice to the Congress of 
any deferral made under subparsigraph (A) within 30 days after the 
date on which the determination to defer is made or by August 31, 
1994, whichever is earlier. 
(c) ENVIRONMENTAL PROTECTION AND USE OF FACILITIES.—(1) 
In 
carrying out the requirement of subsection (aXD, the Secretary shall 
provide for— 
(A) maximum protection for the environment, the general 
public, and the personnel who are involved in the destruction of 
the lethal chemical agents and munitions referred to in subsec-
tion (a); and 
(B) adequate and safe facilities designed solely for the destruc-
tion of lethal chemical agents and munitions. 
(2) Facilities constructed to carry out this section may not be used 
for any purpose other than the destruction of lethal chemical weap-
ons and munitions, and when no longer needed to carry out this 
section, such facilities shall be cleaned, dismantled, and disposed of 
in accordance with applicable laws and regulations. 
(d) PLAN.—(1) The Secretary shall develop a comprehensive plan 
to carry out this section. 
(2) In developing such plan, the Secretary shall consult with the 
Secretary of Health and Human Services and the Administrator of 
the Environmental Protection Agency. 
(3) The Secretary shall transmit a copy of such plan to the 
Congress not later than March 15,1986. 
51-194 O - 88 - 25 : QL. 3 
Parti 
99 STAT. 748 
PUBLIC LAW 99-145—NOV. 8, 1985 
(4) Such plan shall provide— 
(A) an evaluation of the comparison of onsite destruction, 
regional destruction centers, and a national destruction site 
both inside and outside of the United States; 
(B) for technological advances in techniques used to destroy 
chemical munitions; 
(C) for the maintenance of a permanent, written record of the 
destruction of lethal chemical agents and munitions carried out 
under this section; and 
(D) a description of— 
(i) the methods and facilities to be used in the destruction 
of agents and munitions under this section; 
(ii) the schedule for carrying out this section; and 
(iii) the management organization established under 
subsection (e). 
(e) MANAGEMENT ORGANIZATION.—(1) In carrying out this section, 
the Secretary shall provide for the establishment, not later than 
May 1, 1986, of a management organization within the Department 
of the Army. 
(2) Such organization shall be responsible for management of the 
destruction of agents and munitions under this section. 
(3) The Secretary shall designate a general officer as the director 
01 the management organization established under paragraph (1). 
Such officer shall have— 
(A) experience in the acquisition, storage, and destruction of 
chemical agents and munitions; 
(B) training in chemical warfare defense operations; and 
(C) outstanding qualifications regarding safety in handling 
chemical agents and munitions. 
(f) IDENTIFICATION OF FUNDS.—Funds for carrying out this section 
shall be set forth in the budget of the Department of Defense for any 
fiscal year as a separate account. Such funds shall not be included in 
the budget accounts for any military department. Funds for military 
construction projects necessary to carry out this section may be set 
out in the annual military construction budget separately from 
other funds for such project. 
(g) ANNUAL REPORT.—(1) Except as provided by paragraph (4), the 
Secretary shall transmit, by December 15 of each year, a report to 
the Congress on the activities carried out under this section during 
the fiscal year ending on September 30 of the calendar year in which 
the report is to be made. 
(2) The first such report shall be transmitted by December 15, 
1985, and shall contain— 
(A) an accounting of the United States' stockpile of lethal 
chemical agents and munitions on the date of the enactment of 
this Act; and 
(B) a schedule of the activities planned to be carried out under 
this section during fiscal year 1986. 
(3) Each report other than the first one shall contain— 
(A) a site-by-site description of the construction, equipment, 
operation, and dismantling of facilities (during the fiscal year 
for which the report is made) used to carry out the destruction 
of agents and munitions under this section, including any ac-
cidents or other unplanned occurrences associated with such 
construction and operation; and 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 749 
(B) an accounting of all funds expended (during such fiscal 
year) for activities carried out under this section, with a sepa-
rate accounting for amounts expended for— 
(i) the construction of and equipment for facilities used 
for the destruction of agents and munitions; 
(ii) the operation of such facilities; 
(iii) the dismantling or other closure of such facilities; 
(iv) research and development; and 
(v) program management. 
(4) The Secretary shall transmit the final report under this subsec-
tion not later than 120 days following the completion of activities 
under this section. 
(h) PROHIBITION ON ACQUIRING CERTAIN LETHAL CHEMICAL AGENTS 
AND MUNITIONS.—(1) Except as provided in paragraph (2), no agency 
of the Federal Government may, after the date of the enactment of 
this Act, develop or acquire lethal chemical agents or munitions 
other than binary chemical weapons. 
(2XA) The Secretary of Defense may acquire any chemical agent 
or munition at any time for purposes of intelligence analysis. 
(B) Chemical agents and munitions may be acquired for research, 
development, test, and evaluation purposes at any time, but only in 
quantities needed for such purposes and not in production 
quantities. 
(i) REAFFIRMATION OF UNITED STATES POSITION ON FIRST USE OF 
CHEMICAL AGENTS AND MUNITIONS.—It is the sense of Congress that 
the President should publicly reaffirm the position of the United 
States as set out in the Geneva Protocol of 1925, which the United 
States ratified with reservations in 1975. 
(j) DEFINITIONS.—For purposes of this section: 
(1) The term "chemical agent and munition" means an agent 
or munition that, through its chemical properties, produces 
lethal or other damaging effects on human beings, except that 
such term does not include riot control agents, chemical herbi-
cides, smoke and other obscuration materials. 
(2) The term "lethal chemical agent and munition" means a 
chemical £^ent or munition that is designed to cause death, 
through its chemical properties, to human beings in field 
concentrations. 
(3) The term "destruction" means, with respect to chemical 
munitions or agents— 
(A) the demolishment of such munitions or agents by 
incineration or by any other means; or 
(B) the dismantling or other disposal of such munitions or 
agents so as to make them useless for military purposes and 
harmless to human beings under normal circumstances. 
(k) EFFECTIVE DATE.—The provisions of this section shall take 
effect on October 1,1985. 
SEC. 1413. REPORT CONCERNING THE TESTING OF CHEMICAL WARFARE 
AGENTS 
The Secretary of Defense shall, within 90 days after the date of 
enactment of this Act, transmit a report to the Committees on 
Armed Services of the Senate and House of Representatives describ-
ing the following matters concerning the testing of diluted or 
undiluted chemical warfare agents: 
(1) The criteria and process used for selecting sites for such 
testing. 
Research and 
development. 
Research and 
development. 
99 STAT. 750 
PUBLIC LAW 99-145—NOV. 8, 1985 
(2) The nature and extent of any consultation carried out with 
State and local officials before the site for such testing is 
selected. 
(3) The consideration that is given to the proximity of residen-
tial dwelling units, schools, child care centers, nursing homes, 
hospitals, or other health care facilities to the testing site. 
(4) Whether an environmental impact statement should be 
required prior to the approval of a contract for such testing. 
(5) Any costs that may have to be incurred by the Federal 
Government to assist companies that carry out such testing to 
relocate to more isolated areas. 
(6) The degree to which the Secretary estimates that such 
testing will increase or decrease. 
(7) Any recurring problems associated with such testing or the 
site selection process for such testing. 
(8) Any changes in site selection process that are to be imple-
mented by the Secretary or for which legislative action is 
necessary. 
PART C—DRUG INTERDICTION, LAW ENFORCEMENT, AND OTHER 
SPECIFIC PROGRAMS 
14 u s e 89 note. 
SEC. 1421. ENHANCED DRUG-INTERDICTION ASSISTANCE 
(a) MANDATORY ASSIGNMENT OF COAST GUARD PERSONNEL ON 
NAVAL VESSELS.—The Secretary of Defense and the Secretary of 
Transportation shall provide that there be assigned on board each 
surface naval vessel at sea in a drug-interdiction area at least one 
member of the Coast Guard who is trained in law enforcement and 
has power to arrest, search, and seize property and persons sus-
pected of violations of law. 
(b) LAW ENFORCEMENT FUNCTIONS.—Members of the Coast Guard 
assigned to duty on board naval vessels under this section shall 
perform such law enforcement functions (including drug-interdic-
tion functions)— 
(1) as may be agreed upon by the Secretary of Defense and the 
Secretary of Transportation; and 
(2) as are otherwise within the jurisdiction of the Coast 
Guard. 
(c) AUTHORIZATION OF NECESSARY COAST GUARD PERSONNEL; FUND-
ING.—(1) The active-duty military strength level for the Coast Guard 
for fiscal year 1986 is increased by 500. Additional members of the 
Coast Guard who are on active duty by reason of this subsection 
shall be assigned to duty as provided in subsection (a). 
(2) Of the funds appropriated for operation and maintenance for 
the Navy for fiscal year 1986, the sum of $15,000,000 shall be 
transferred to the Secretary of Transportation and shall be available 
only for the additional personnel authorized by paragraph (1). 
(d) DEFINITIONS.—For the purposes of this section: 
(1) The term "drug-interdiction area" means an area outside 
the land area of the United States in which the Secretary of 
Defense (in consultation with the Attorney General) determines 
that activities involving smuggling of drugs into the United 
States are ongoing. 
(2) The term "active-duty military strength level for the Coast 
Guard for fiscal year 1986" means the full-time equivalent 
strength level for active-duty military personnel of the Coast 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 751 
Guard for fiscal year 1986 required to be maintained by section 
3 of the Coast Guard Authorization Act of 1984 (Public Law 98-
557; 98 Stat. 2860). 
SEC. 1422. ESTABLISHMENT, OPERATION, AND MAINTENANCE OF DRUG 
LAW ENFORCEMENT ASSISTANCE ORGANIZATIONS OF THE 
DEPARTMENT OF DEFENSE 
(a) AUTHORIZATION OF FUNDS FOR ELEMENTS ASSISTING CIVILIAN 
DRUG INTERDICTION.—(1) There are authorized to be appropriated to 
the Department of Defense for fiscal year 1986 such sums as may be 
necessary for the establishment, operation, and maintenance of 
airborne surveillance, detection, and interdiction units in the 
Department of Defense. 
(2) There are authorized to be appropriated to the Department of 
Defense for fiscal year 1986 such sums as may be necessary for the 
operation and maintenance of the Directorate of the Department of 
Defense Task Force on Drug Law Enforcement. 
(b) COMMAND, CONTROL, AND COORDINATION.—A special operations 
headquarters element shall provide necessary command, control, 
and coordination of appropriate active or Reserve component special 
operations forces, combat rescue units, and other units for participa-
tion by such forces and units in drug law-enforcement assistance 
missions. 
(c) REPORT ON PLANS TO ENHANCE COOPERATION WITH CIVILIAN 
Aircraft and air 
DRUG ENFORCEMENT AGENCIES.—Not later than December 1, 1985, carriers. 
the Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a report on 
the manner in which the Department of Defense plans to obligate 
and expend funds appropriated or expected to be appropriated 
pursuant to the authorizations contained in this section. The report 
shall include a description o
f
— 
(1) actions or proposed actions to establish, operate, and main-
tain reserve component forces, airborne surveillance, detection, 
and interdiction units, including— 
(A) actions or proposed actions to consolidate or establish, 
in a Special Operations Wing of thib Air Force (reserve or 
active component), command, control, and coordination of 
Air Force Special Operations aircraft (including aircraft 
assigned to the Special Operations Wing of the Regular Air 
Force on or before March 1,1985); and 
(B) in the case of any such aircraft which are not to 
remain assigned to a Special Operation Wing of the Air 
Force, the disposition or planned disposition of those 
aircraft; 
(2) actions and proposed actions to use rotary-wing and fixed-
wing aircraft of the Department of Defense as well as other 
measures necessary to furnish (commensurate with military 
readiness and the provisions of chapter 18 of title 10, United 
States Code) optimal support to civilian law enforcement agen- lo USC 371 et 
cies; and 
seq. 
(3) actions and proposed actions to promote dual use between 
the reserve component forces and civilian law enforcement 
agencies of the Department of Defense aircraft and other 
Department of Defense resources made available to civilian law 
enforcement agencies for the purpose of carrying out drug 
interdiction missions. 
99 STAT. 752 
PUBLIC LAW 99-145—NOV. 8, 1985 
Sl-X'. 1423. MILITARY CX)()PERATI()N INFORMATION FR()(;RAMS FOR 
CIVILIAN LAW ENFORCEMENT OFFICIALS 
(a) PROVISION OF LAW ENFORCEMENT ASSISTANCE INFORMATION.— 
Section 373 of title 10, United States Code, is amended— 
(1) by inserting "(a)" before "The"; and 
(2) by adding at the end thereof the following new subsections: 
"(bXD At least once each year, the Attorney General of the United 
States, in consultation with the Secretary of Defense, shall conduct 
a briefing of law enforcement personnel of each State, including law 
enforcement personnel of the political subdivisions of each State, 
regarding information, training, technical assistance, and equip-
ment and facilities available to civilian law enforcement personnel 
from the Department of Defense. 
"(2) Each briefing conducted under paragraph (1) shall include— 
"(A) an explanation of the procedures for civilian law enforce-
ment officials— 
"(i) to obtain information under section 371 of this title, 
use of equipment and facilities under section 372 of this 
title, and training and advice under subsection (a); and 
"(ii) to obtain surplus military equipment; 
"(B) the types of information, equipment and facilities, and 
training and advice available to civilian law enforcement offi-
, 
cials from the Department of Defense; and 
"(C) a current, comprehensive list of military equipment 
which is suitable for law enforcement purposes and is available 
to civilian law enforcement officials from the Department of 
Defense or is available as surplus property from the Adminis-
trator of General Services. 
"(c) The Attorney General of the United States and the Adminis-
trator of General Services shall— 
"(1) establish or designate an appropriate office or offices to 
maintain the list described in subsection (bK2XC) and to furnish 
information to civilian law enforcement officials on the avail-
ability of surplus military equipment; and 
"(2) make available to civilian law enforcement personnel 
nationwide, tollfree telephone communication with such office 
or offices.". 
10 use 373 note. 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
shall take effect on January 1, 1986. 
SEC. 1424. STUDY ON THE USE OF THE E-2 AIRCRA^T FOR DRUG INTERDIC-
TION PURPOSES 
(a) STUDY BY SECRETARY OF THE NAVY.—The Secretary of the Navy 
shall conduct a test of the use of E-2 aircraft of the Navy to 
Mexico. 
determine the effectiveness of that aircraft in drug interdiction. The 
study shall be conducted along the border between the United States 
and Mexico and shall be carried out over a period of 6 months. 
(b) COLLECTION OF DATA.—As part of the test, the Secretary shall 
collect data on the contribution on the use of the E-2 aircraft to the 
apprehension of drug smugglers. This data shall include the number 
of intercepts which resulted in apprehensions. 
(c) REPORT.—Not later than September 30, 1986, the Secretary 
shall submit to Congress a report on the results of the study. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 753 
SEC. 1425. STRATEGIC BOMBER PROCJRAMS 
(a) SENSE OF CONGRESS REGARDING THE ADVANCED TECHNOLOGY 
BOMBER AND THE ADVANCED CRUISE MISSILE.—It is the sense of 
Congress that— 
(1) the capabilities inherent in the technologies associated 
with the Advanced Technology Bomber program and the Ad-
vanced Cruise Missile program are a critical national security 
asset for maintaining an adequate and credible deterrent 
posture; 
(2) such technologies and programs should be developed as 
rapidly as feasible in order to produce and deploy advanced 
systems which will complicate the military planning of the 
Soviet Union and as a consequence enhance the deterrent 
posture of the United States; 
(3) such technologies and programs should be funded at the 
levels authorized in this Act; and 
(4) all the funds appropriated for such programs should be 
fully used for such programs. 
(b) PROHIBITION ON USE OF FUNDS FOR A T B AND ACM 
FOR ANY 
OTHER PURPOSE.—None of the funds appropriated pursuant to an 
authorization of appropriations in this Act to carry out the 
Advanced Technology Bomber program or the Advanced Cruise 
Missile program may be used for any other purpose. 
(c) SENSE OF CONGRESS ON B-IB BOMBER PROGRAM.—It is the sense 
of Congress that, consistent with the stated policy of the Depart-
ment of Defense, the B-IB bomber aircraft procurement program 
should be terminated after acquisition under such program of 100 
aircraft. 
(d) LIMITATION ON NUMBER OF B-IB AIRCRAFT TO BE PROCURED.— 
None of the funds appropriated pursuant to an authorization con-
tained in this Act may be obligated or expended for the conduct of 
research, design, demonstration, development, or procurement of 
more than 100 B-IB bomber aircraft (including any derivative or 
modified version of such aircraft). 
SEC. 1426. RESTRICTIONS ON CERTAIN NUCLEAR PROGRAMS 
(a) RESTRICTION ON FUNDING FOR MX MISSILE WARHEAD.—None of 
the funds appropriated pursuant to an authorization provided in 
this or any other Act may be obligated or expended for the produc-
tion of W-87 warheads for the MX missile program in excess of the 
numbers of warheads required to arm the number of such missiles 
authorized by the Congress to be deployed and determined by the 
President to be necessary for quality assurance and reliability 
testing. 
(b) EMPLOYMENT OF THE STANDARD MISSILE (SM-2(N)).—Except for 
the studies and report required by this section, none of the funds 
authorized to be appropriated by this Act may be expended for 
research, development, test, or procurement associated with a nu-
clear variant of the Standard Missile (SM-2(N)) or any associated 
nuclear warhead until 30 calendar days after the Secretary of the 
Navy submits to the Committees on Armed Services of the Senate 
and House of Representatives a report which includes the following 
information: 
(1) A description of the circumstances under which the 
SM-2(N) would be used and an assessment of likely enemy 
response (including countermeasures). 
Union of Soviet 
Socialist 
Republics. 
99 STAT. 754 
PUBLIC LAW 99-145—NOV. 8, 1985 
(2) A description of the release procedures and circumstances 
under which release would be authorized for employment of the 
SM-2(N). 
(3) An analysis of conventional alternatives to the SM-2(N), 
including any necessary modification to the SM-2 or alternative 
to the Standard Missile or warhead, and the associated costs of 
those alternatives. 
(4) A summary of all studies previously conducted analyzing 
the impact of the use of nuclear naval surface-to-air missiles on 
our own vessels and electronics. 
(5) A list of all United States ships which may receive the 
SM-2(N). 
(6) The number of additional conventional armed missiles 
which could be carried by United States ships if the SM-2(N) 
were not deployed and the impact on fleet air defense from that 
reduced conventional load. 
(7) Any plans or programs for the development of a nuclear 
naval surface-to-air or air-to-air missile for fleet defense other 
than the SM-2(N). 
(c) REPORT ON REQUIREMENTS FOR SPECIAL NUCLEAR MATERIALS.— 
(1) Not later than March 1, 1986, the Secretary of Defense and the 
Secretary of Energy, after consultation with the Joint Chiefs of Staff 
and the Director of the Arms Control and Disarmament Agency, 
shall submit a report to the Committees on Armed Services of the 
Senate and House of Representatives detailing the military require-
ments for special nuclear materials through fiscal year 1991. The 
report shall include findings and recommendations concerning— 
(A) requirements for production of plutonium, highly en-
riched uranium, and other special nuclear materials; and 
(B) the recovery of special nuclear materials for military uses 
that have been transferred from military uses to civilian re-
search and development uses. 
(2) The report should also— 
(A) address the availability of special nuclear materials to be 
derived from the retirement of existing nuclear weapons; 
(B) address the feasibility of meeting military needs for spe-
cial nuclear materials through the blending of high grade and 
low grade materials stocks; 
(C) assess the impact of new materials separation, purifi-
cation, and production technologies on nuclear proliferation; 
and 
(D) contain the views of the Joint Chiefs of Staff and the 
Director of the Arms Control and Disarmament Agency. 
PART D—MISCELLANEOUS REPORTING REQUIREMENTS 
SEC. 
1431. EXTP:NSI()N O F TIME FOR SUBMISSION O F REPORTS BY 
COMMISSION ON MERCHANT MARINE AND DEFENSE 
46 use app. 1120 
Section 1536 of the Department of Defense Authorization Act, 
note. 
1985 (Public Law 98-525; 98 Stat. 2633), is amended— 
(1) by striking out "on September 30, 1985, and September 30, 
1986" in subsection (b) and inserting in lieu thereof "12 months 
after the date of the enactment of the law first providing funds 
for the Commission and 24 months after such date"; 
(2) in subsection (g)— 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 755 
(A) by striking out "June 30,1985, and June 30, 1986" and 
inserting in lieu thereof "nine months after the date of the 
enactment of the law first providing funds for the Commis-
sion and not later than 2l months after such date"; and 
(B) by striking out "September 30, 1985, and Septem-
ber 30, 1986" and inserting in lieu thereof "12 months after 
such date of enactment and not later than 24 months after 
such date of enactment"; and 
(3) by striking out "September 30, 1987" in subsection (i) and 
inserting in lieu thereof "September 30, 1988". 
SEC. 1432. REPORT ON NAVAL SHIPBUILDING AND REPAIR BASE 
(a) REQUIREMENT FOR REPORT BY SECRETARY OF THE NAVY.—The 
Secretary of the Navy shall submit to the Committees on Armed 
Services of the Senate and House of Representatives a report on the 
industrial base for construction, overhaul, and repair of naval ves-
sels (hereinafter in this section referred to as the "shipyard base"). 
(b) COMPETITION AND MOBILIZATION CAPABILITY.—The report shall 
consider the current competitive environment in the shipyard base 
and the current mobilization capability of the shipyard base. 
(c) STUDY OF INCREASE IN NUMBER OF SHIPYARDS.—(1) The report 
shall include an assessment of how competition in the shipyard base 
and the mobilization capability of the shipyard base would each be 
affected by an increase in the number of shipyards in the shipyard 
base and shall assess alternative ways of achieving such an increase. 
(2) In assessing ways to increase the number of shipyards in the 
shipyard base, the Secretary shall consider the feasibility and desir-
ability of expanding by one the number of shipyards currently 
engaged in construction of each of the following types of vessels: 
(A) Trident nuclear-powered fleet ballistic missile sub-
marines. 
(B) Nuclear-powered attack submarines. 
(C) Nuclear-powered aircraft carriers. 
(D) Complex surface combatants. 
(E) Auxiliaries. 
(3) In considering ^ways to increase the number of shipyards 
constructing each type of vessel listed in paragraph (2), the Sec-
retary shall consider expansion of the shipbuilding base on the West 
Coast of the United States and increased use of public shipyards. 
(d) FACTORS IN ASSESSMENT.—The £issessment of the current 
capabilities of the shipyard base and of each alternative identified 
under subsection (c)— 
(1) shall be made considering the requirements of both peace-
time competition and wartime mobilization capability; and 
(2) shall include a description of the possible costs and bene-
fits of the current capabilities and each alternative. 
(e) DEADLINE FOR REPORT.—The report required by subsection (a) 
shall be submitted not later than January 31,1986. 
SEC. 1433. NUCLEAR REACTOR COMPONENTS FOR SSN-21 CLASS SUB-
MARINES 
Not more than one-half of the funds appropriated pursuant to Report. 
authorizations of appropriations in this Act for the design or 
construction of nuclear reactor components for the SSN-21 class 
submarine may be obligated until the Secretary of the Navy submits 
to the Committees on Armed Services of the Senate and House of 
Representatives a report on the industrial base for the design and 
99 STAT. 756 
PUBLIC LAW 99-145—NOV. 8, 1985 
construction of nuclear components for the SSN-21 class submarine. 
The report shall evaluate the cost effectiveness of increasing the 
number of firms actively employed in the design of nuclear reactor 
components and the construction of nuclear reactor components. 
SEC. 1434. AIRCRAFT FUEL CONSERVATION REPORT 
(a) SUBMISSION OF REPORT.—The Secretary of Defense shall submit 
to Congress a report with respect to efforts by the Department of 
Defense since 1981 to reduce the use of fuel by military aircraft— 
(1) during takeoffs; and 
(2) in other situations in which the Secretary determines that 
the use of fuel may be reduced without lowering safety 
standards. 
(b) MATTERS TO BE INCLUDED.—The report shall include discussion 
of— 
(1) specific fuel conservation initiatives; 
(2) estimated cost savings from such initiatives; and 
(3) ongoing efforts to further reduce the use of fuel by military 
aircraft. 
(c) TIME FOR SUBMISSION OF REPORT.—The report shall be submit-
ted not later than 90 days after the date of the enactment of this 
Act. 
SEC. 1435. REPORT CONCERNING POSEIDON-CLASS SUBMARINE 
(a) REPORT ON ALTERNATIVE USES.—The Secretary of Defense shall 
submit to Congress a report with respect to— 
(1) the feasibility of converting a Poseidon-class submarine 
into an SSN-type submarine or SSGN-type submarine; and 
(2) the feasibility of using a Poseidon-class submarine as a 
training platform. 
(b) DEADUNE FOR REPORT.—The report shall be submitted not 
later than December 15,1985. 
SEC. 1436. REPORT AND DEMONSTRATION PROJECT CONCERNING THE 
SALE OF CERTAIN UNITED STATES MEAT IN MILITARY COM 
MISSARIES OVERSEAS 
(a) FEASIBILITY STUDY AND DEMONSTRATION PROJECT.—The Sec-
retary of Defense shall study the feasibility of providing beef, pork, 
and lamb produced in the United States for sale in American 
Military Forces' commissaries located overseas in volumes equiva-
lent to beef, pork, and lamb secured for sale from non-United States 
producers. Such study— 
(1) shall be carried out in consultation with the Secretary of 
Agriculture; and 
(2) shall include a demonstration project in which beef, pork, 
and lamb produced in the United States shall be stocked in 
three commissaries on Air Force bases in Europe and in three 
commissaries located on Army bases in Europe for a six-month 
period in volumes equivalent to beef, pork, and lamb secured for 
sale from non-United States producers; such United States-
produced products shall, to the best of the Secretary's ability, be 
made available at consumer prices which are competitive when 
compared with non-United States produced red-meat products 
offered for sale in the commissary system. 
(b) REPORT.—Not later than one year after the date of the enact-
ment of this Act, the Secretary of Defense shall submit to Congress a 
report on the results of such study and the findings and conclusions 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 757 
of the Secretary under such study. Such report shall include any 
views provided by the Secretary of Agriculture. 
SKC. 1437. RKPORT ON KKTKNTION OF BASIC POINT DKFKNSK .\1ISSII.K 
SYSTKM 
(a) REQUIREMENT FOR REPORT BY SECRETARY OF THE NAVY.—The 
Secretary of the Navy shall submit to the Committees on Armed 
Services of the Senate and House of Representatives a report on the 
removal of the Basic Point Defense Missile System from naval 
amphibious vessels. 
(b) REPLACEMENT OF THE BASIC POINT DEFENSE MISSILE SYSTEM.— 
(1) The report shall consider the current plans to replace the Basic 
Point Defense Missile System on amphibious vessels with the Close-
in Weapon System (CIWS). 
(2) The report shall include an assessment of the effectiveness of 
the anti-air warfare capabilities of amphibious vessels. This assess-
ment shall be used by the Secretary of the Navy in considering 
augmenting rather than replacing the Basic Point Defense Missile 
System on amphibious vessels with the Close-in Weapon System. 
(c) LIMITATIONS ON REMOVAL OF BASIC POINT DEFENSE MISSILE 
SYSTEM.—The Secretary of the Navy may not remove the Basic 
Point Defense Missile System from amphibious vessels until the 
report is submitted. 
SKC. 1438. REPORT ON RETIREMKNT BENEFITS OF PHILIPPINE SCOUTS 
(a) IN GENERAL.—The Secretary of the Army (hereinafter in this 
section referred to as the "Secretary") shall conduct a study o
f
— 
(1) the disparity between the pay received by members of the 
Philippine Scouts who served during World War II and the pay 
received by other members of the United States Army during 
such war who had grades and lengths of service that correspond 
to the grades and lengths of service of such members of the 
Philippine Scouts; and 
(2) the effect of this disparity on the retirement benefits of 
such members of the Philippine Scouts and their survivors. 
(b) PARTICULAR SUBJECTS OF THE STUDY.—In carrying out such 
study, the Secretary shall— 
(1) compile a list of all persons who served as members of the 
Philippine Scouts during the period beginning on December 7, 
1941, and ending on December 31, 1946; 
(2) compile a list of persons described in paragraph (1) who are 
alive on the date of enactment of this Act; 
(3) determine the amount of basic pay each person described 
in paragraph (2) received for services rendered as a member of 
the Philippine Scouts during the period described in such para-
graph and compare it with the amount of basic pay each such 
person would have received as a member of the Philippine 
Scouts during that period if the rates of basic pay during such 
period for the Philippine Scouts had been the same as the rates 
of basic pay for other members of the United States Army with 
corresponding grades and length of service during such period; 
(4) determine the amount of retired pay that each person 
described in paragraph (2) is entitled to receive as retired pay 
from the Army as a result of service rendered as a Philippine 
Scout and compare it with the amount such person would 
receive for periods beginning after the date of enactment of this 
Act if the rate of basic pay payable to such person during the 
99 STAT. 758 
PUBLIC LAW 99-145—NOV. 8, 1985 
period described in paragraph (1) had been the rate of basic pay 
payable to any other member of the United States Army with 
the corresponding grade and length of service during such 
period; and 
(5) determine possible options, and the costs of each, for 
recalculating the retirement pay of persons described in para-
graph (2), including survivor benefits, in order to remedy the 
disparity in pay received by such persons during their service as 
Philippine Scouts, 
(c) REPORT.—(1) The Secretary shall transmit, within one year 
after the date of enactment of this Act, to the Committees on Armed 
Services of the Senate and House of Representatives a report 
containing the findings and conclusions of the Secretary with re-
spect to each of the matters described in paragraphs (1) through (5) 
of subsection (b). 
(2) If the Secretary determines that— 
(A) the documents necessary to compile the lists and make the 
determinations under subsection (b) are not attainable through 
reasonable efforts; or 
(B) the cost of compiling such lists and making such deter-
minations is excessive, 
the Secretary shall make a report as soon as practicable to such 
Committees with a justification of such determination. 
(3) If a report is made to the Committees under paragraph (2), the 
report to such Committees under paragraph (1) shall be based on the 
best information that can be reasonably obtained without excessive 
costs. 
SEC. 1439. REPORT ON DEATH PENALTY FOR ESPIONAGE 
(a) STUDY.—The Secretary of Defense shall conduct a study of the 
desirability of reinstating the death penalty as an alternative pen-
alty for persons convicted of espionage relating to the national 
defense. 
(b) REPORT.—The Secretary shall submit to Congress a report 
containing the results of such study, together with any related 
recommendations for legislation, not later than 30 days after the 
date of the enactment of this Act. 
SEC. 1440. REPORT ON IMPACT OF FOREIGN EXPORTS ON THE DEFENSE 
INDUSTRIAL BASE OF THE UNITED STATES 
(a) STUDY.—The Secretary of Defense shall conduct a study 
regarding the effects that foreign export subsidies have had on the 
defense industrial base of the United States. 
Contracts. 
(b) SPECIFIC REQUIREMENTS.—The Secretary shall include in such 
study the following: 
(1) A compilation of the contracts (including the name of the 
contracting firms) valued in excess of $1,000,000 awarded to 
foreign firms by the Department of Defense during fiscal year 
1984, fiscal year 1985, and the first six months of fiscal year 
1986. 
(2) In the case of a product procured by the Department of 
Defense which was exported to the United States under a 
contract compiled pursuant to paragraph (1), whether the Sec-
retary of Commerce or the Secretary of the Treasury has deter-
mined since 1970 that the product exported to the United States 
under such contract is subject to a countervailing duty under 
title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) and (if 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 759 
so) a description of the subsidy that led to such determination, 
including a description of the type and amount of the subsidy. 
(c) SUBMISSION OF REPORT.—Not later than June 1, 1986, the 
Secretary shall submit to the Congress a report containing the 
results of the study required under subsection (a). 
SEC. 1441. SENSE OF CONGRESS REGARDING THE FIRING OF TACTICAL 
MISSILES FOR TRAINING PURPOSES 
(a) SENSE OF CONGRESS.—It is the sense of the Congress that, in 
carrying out the comprehensive analysis of the threat-based muni-
tions and related expendables directed to be made by the Secretary 
of Defense pursuant to Senate Report 99-41, dated April 29, 1985, 
the Secretary should also develop standard criteria— 
(1) for identifying, in the case of each tactical missile of the 
Department of Defense, the training objectives that 
are 
uniquely served by the live-firing of such missiles and to provide 
guidance for the development of live-firing and training require-
ments based on such criteria; 
(2) for utilizing, to the maximum extent practicable, the use of 
tactical missile evaluation programs for live-firing training 
purposes; 
(3) for improving the reporting and evaluation requirements 
with regard to the live-firing of missiles; and 
(4) for increasing, to the maximum extent practicable and 
without degrading readiness, the use of training devices and 
simulators as alternatives to exercises involving the live-firing 
of missiles for training purposes. 
(b) REPORT.—The Secretary shall submit a report to the Congress 
not later than February 1, 1986, informing the Congress of the 
actions taken by the Secretary to develop standard criteria with 
respect to the matters referred to in subsection (a). 
SEC. 1442. REPORT ON FEASIBILITY OF DRUG TESTING OF PROSPECTIVE 
RECRUITS 
(a) IN GENERAL.—The Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the feasibility of implementing a pro-
gram in the Department of Defense designed to detect use of illegal 
drugs by persons who have been accepted for entry into the Armed 
Forces but who have not become members of the Armed Forces. 
(b) MATTERS TO BE INCLUDED.—The Secretary shall include in the 
report required by subsection (a)— 
(1) an explanation of how such a program would operate; 
(2) the Secretary's assessment of the value of such a program; 
(3) a discussion of any problems that might complicate the 
administration of such a program; 
(4) a discussion of the advantages and disadvantages of 
instituting such a program; 
(5) an estimate of any savings that the United States might 
realize by detecting use of illegal drugs by persons before they 
become members of the Armed Forces; and 
(6) any recommendations for legislation that the Secretary 
considers necessary or appropriate to establish such a program. 
(c) DEADUNE FOR REPORT.—The Secretary shall submit the report 
required under subsection (a) not later than October 1, 1985. 
99 STAT. 760 
PUBLIC LAW 99-145—NOV. 8, 1985 
PART E—MISCELLANEOUS PROVISIONS 
SEC. 1451. SENSE OF CONGRESS ON INTRODUCTION OF ARMED FORCES 
INTO NICARAGUA FOR COMBAT 
It is the sense of Congress that United States Armed Forces 
should not be introduced into or over Nicaragua for combat. How-
ever, nothing in this section shall be construed as affecting the 
authority and responsibility of the President or Congress under the 
Constitution, statutes, or treaties of the United States in force. 
SEC. 1452. SENSE OF CONGRESS CONCERNING PROTECTION OF UNITED 
STATES MILITARY PERSONNEL AGAINST TERRORISM 
(a) FINDING.—The Congress finds that the protection of members 
of the Armed Forces against terrorist activity is among the highest 
national security concerns of the United States. 
(b) SENSE OF CONGRESS.—Therefore, it is the sense of Congress 
that— 
(1) the President should be supported in the vigorous exercise 
of his powers as Commander-in-Chief to protect members of the 
Armed Forces against terrorist activity; and 
(2) such exercise of power should include the use of such 
measures as may be appropriate and consistent with law. 
SEC. 1453. READINESS OF SPECIAL OPERATIONS FORCES 
(a) CONGRESSIONAL FINDINGS.—The Congress finds that— 
(1) the first duty of the Government is to provide for the 
common defense, including safeguarding the peace, safety, and 
security of the citizens of the United States; 
(2) the incidence of terrorist, guerilla, and other violent 
threats to citizens and property of the United States has rapidly 
increased; 
(3) the special operations forces of the Armed Forces provide 
the United States with immediate and primary capability to 
respond to terrorism; and 
(4) the special operations forces are the military mainstay of 
the United States for the purposes of nation-building and train-
ing friendly foreign forces in order to preclude deployment or 
combat involving the conventional or strategic forces of the 
United States. 
(b) SENSE OF THE CONGRESS.—In view of the findings in subsection 
(a), it is the sense of the Congress that— 
(1) the revitalization of the capability of the special operations 
forces of the Armed Forces should be pursued as a matter of the 
highest priority; 
(2) personnel and other resource allocations should reflect the 
priority referred to in paragraph (1); 
(3) the political and military sensitivity and the importance to 
national security of the special operations forces require that 
the Office of the Secretary of Defense should improve its 
management supervision of such forces in all aspects of the 
special operations mission area; 
(4) the joint command and control of the special operations 
forces must permit direct and immediate access by the Presi-
dent and Secretary of Defense; and 
(5) the commanders-in-chief of the unified commands should 
have available, within their operational areas of responsibility, 
sufficient special operations assets to execute the operations 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 761 
plans for which they are responsible or to support additional 
contingency operations directed from the national level. 
SEC. 1454. AUTHORITY TO PROVIDE EXCESS PERSONAL PROPERTY FOR 
HUMANITARIAN PURPOSES 
(a) AUTHORITY TO PROVIDE NONLETHAL EXCESS PROPERTY.—Chap-
ter 151 of title 10, United States Code, is amended by adding at the 
end thereof the following new section: 
"§ 2547. Excess nonlethal supplies: humanitarian relief 
"(a) The Secretary of Defense may make available for humani-
tarian relief purposes any nonlethal excess supplies of the Depart-
ment of Defense. 
"(b) Excess supplies made available for humanitarian relief pur-
poses under this section shall be transferred to the Secretary of 
State, who shall be responsible for the distribution of such supplies. 
"(c) This section does not constitute authority to conduct any 
activity which, if carried out as an intelligence activity by the 
Department of Defense, would require— 
"(Da finding under section 662 of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2422); or 
"(2) a notice to the intelligence committees under section 
501(aXl) of the National Security Act of 1947 (50 U.S.C. 413). 
"(dXD The Secretary of State shall submit an annual report on the 
disposition of all excess supplies transferred by the Secretary of 
Defense to the Secretary of State under this section during the 
preceding year. 
"(2) Such reports shall be submitted to the Committees on Armed 
Services and on Foreign Relations of the Senate and the Commit-
tees on Armed Services and on Foreign Affairs of the House of 
Representatives. 
"(3) Such reports shall be submitted not later than June 1 of each 
year. 
"(e) In this section: 
"(1) 'Nonlethal excess supplies' means property, other than 
real property, of the Department of Defense— 
"(A) that is excess property, as defined in regulations of 
the Department of Defense; and 
"(B) that is not a weapon, ammunition, or other equip-
ment or material that is designed to inflict serious bodily 
harm or death. 
"(2) 'Intelligence committees' means the Select Committee on 
Intelligence of the Senate and the Permanent Select Committee 
on Intelligence of the House of Representatives.". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by adding at the end thereof the 
following new item: 
"2547. Excess nonlethal supplies: humanitarian relief.". 
SEC. 1455. ENCOURAGEMENT OF CONSTRUCTION IN UNITED STATES SHIP-
YARDS OF COMBATANT VESSELS FOR UNITED STATES 
ALLIES 
(a) IN GENERAL.—The Secretary of the Navy shall take such steps 
as necessary— 
(1) to encourage United States shipyards to construct combat-
ant vessels for nations friendly to the United States, subject to 
the requirement to safeguard sensitive warship technology; and 
10 u s e 2547. 
Report. 
99 STAT. 762 
PUBLIC LAW 99-145—NOV. 8, 1985 
Ante, p. 599. 
Research and 
development. 
State and local 
governments. 
Schools and 
colleges. 
10 u s e 2363. 
(2) to ensure that no effort is made by any element of the 
Department of the Navy to inhibit, delay, or halt the provision 
of any United States naval system to a nation allied with the 
United States if that system is approved for export to a foreign 
nation, unless approval of such system for export is with-
held solely for the purpose of safeguarding sensitive warship 
technology; 
(3) if opportunities arise to construct combatant vessels 
(including diesel submarines) outside the United States in a 
shipyard of a friendly foreign nation, with some or all of the 
costs provided by United States funds— 
(A) to encourage United States firms to participate in 
such construction to the maximum extent possible, subject 
to the requirement to safeguard sensitive warship tech-
nology; and 
(B) to ensure, whenever practicable, that at least 51 
percent of the dollar value of such construction is provided 
by United States firms. 
(b) DEFINITION.—For the purposes of this section, the term "sen-
sitive warship technology" means technology relating to the design 
or construction of a combatant naval vessel that is determined by 
the Secretary of Defense to be vital to United States security. 
SEC. 1456. DEFENSE INDUSTRIAL BASE FOR TEXTILE AND APPAREL 
PRODUCTS 
(a) CAPABILITY OF DOMESTIC TEXTILE AND APPAREL INDUSTRIAL 
BASE.—The Secretary of Defense shall monitor the capability of the 
domestic textile and apparel industrial base to support defense 
mobilization requirements. 
(b) ANNUAL REPORT.—The Secretary shall submit to Congress not 
later than April 1 of each of the five years beginning with 1986 a 
report on the status of such industrial base. Each such report shall 
include— 
(1) an identification of textile and apparel mobilization 
requirements of the Department of Defense that cannot be 
satisfied on a timely basis by the domestic industries; 
(2) an assessment of the effect any inadequacy in the textile 
and apparel industrial base would have on a defense mobiliza-
tion; and 
(3) recommendations for ways to alleviate any inadequacy in 
such industrial base that the Secretary considers critical to 
defense mobilization requirements. 
SEC. 1457. ENCOURAGEMENT OF TEC1IN()L()(JY TRANSFER 
(a) IN GENERAL.—Chapter 139 of title 10, United States Code (as 
amended by section 123(a)(1)), is amended by adding at the end 
thereof the following new section: 
"§ 2363. Encouragement of technology transfer 
"(a) The Secretary of Defense shall encourage, to the extent 
consistent with national security objectives, the transfer of tech-
nology between laboratories and research centers of the Department 
of Defense and other Federal agencies. State and local governments, 
colleges and universities, and private persons in cases that are likely 
to result in the maximum domestic use of such technology. 
"(b) The Secretary shall examine and implement methods, in 
addition to the encouragement referred to in subsection (a), that are 
consistent with national security objectives and will enable Depart-
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 763 
ment of Defense personnel to promote technology transfer in cases 
referred to in subsection (a).". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter (as amended by section 123(a)(2)) is amended by 
adding at the end thereof the following new item: 
"23(58. Encouragement of technology transfer.". 
SEC. 14!)8. CIVIL AIR PATROL 
(a) REIMBURSEMENT FOR MAJOR ITEMS OF EQUIPMENT.—Section 
9441(b)(10) of title 10, United States Code, is amended by striking out 
98 Stat. 2632. 
"authorize the purchase with funds appropriated to the Air Force" 
and inserting in lieu thereof "reimburse the Civil Air Patrol for 
costs incurred for the purchase". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
10 USC 9441 
shall take effect on October 1, 1985. 
note. 
SEC. 
14.'S9. NATIONAL SCIENCE CENTER FOR COMMUNICATIONS AND 
ELECTRONICS 
(a) FINDINGS.—The Congress makes the following findings: 
(1) Scientific and technological developments in communica-
tions and electronics are of particular importance to the United 
States in meeting its national security, industrial, and other 
needs. 
(2) Enhanced training in the technical communications, elec-
tronics, and computer disciplines is necessary for a more effi-
cient and effective military force. 
(3) The Secretary of the Army, through the Training and 
Doctrine Command, is responsible for providing training to 
members of the Army. 
(4) The Ninety-seventh Congress, in Senate Concurrent Reso-
lution 130 of that Congress, encouraged the establishment 
96 Stat. 2674. 
within the United States of a national center dedicated to 
communications and electronics. 
(5) The Secretary of the Army entered into a Memorandum of 
Understanding with the National Science Center for Commu-
nications and Electronics Foundation Incorporated, a nonprofit 
corporation of the State of Georgia, in which the Army and such 
foundation agreed to develop a science center for— 
(A) the promotion of engineering principles and practices; 
(B) the advancement of scientific education for careers in 
communications and electronics; and 
(C) the portrayal of the communications, electronics, and 
computer arts. 
(b) PURPOSE.—It is the purpose of this section— 
(1) to recognize the relationship between the Army and the 
National Science Center for Communications and Electronics 
Foundation Incorporated (hereinafter in this section referred to 
as the "Foundation") for the development, construction, and 
operation of a national science center; and 
(2) to authorize the Secretary of the Army (hereinafter in this 
section referred to as the "Secretary") to make available a 
suitable site for the construction of such a center, to accept title 
to the center facilities when constructed, and to provide for the 
management, operation, and maintenance of such a center after 
the transfer of title of the center to the Secretary. 
(c) NATIONAL SCIENCE CENTER.—(1) Subject to paragraph (2), the 
Georgia. 
Secretary may provide a suitable parcel of land at or near Fort 
99 STAT. 764 
PUBLIC LAW 99-145—NOV. 8, 1985 
Gordon, Georgia, for the construction by the Foundation of a Na-
tional Science Center to meet the objectives expressed in subsection 
(a). Upon completion of the construction of the center, the Secretary 
may accept title to the center and may provide for the management, 
operation, and maintenance of the center. 
(2) As a condition to making a parcel of land available to the 
Foundation for the construction of a National Science Center, the 
Secretary shall have the right to approve the design of the center, 
including all plans, specifications, contracts, sites, and materials to 
be used in the construction of such center and all rights-of-way, 
easements, and rights of ingress and egress for the center. The 
Secretary's approval of the design and plans shall be based on good 
business practices and accepted engineering principles, taking into 
consideration safety and other appropriate factors. 
(d) GIFTS.—The Secretary may accept conditional or unconditional 
gifts made for the benefit of, or in connection with, the center. 
(e) ADVISORY BOARD.—The Secretary may appoint an advisory 
board to advise the Secretary regarding the operation of the center 
in pursuit of the goals of the center described in subsection (a)(5). 
The Secretary may appoint to the advisory board such members of 
the Board of Directors of the Foundation as the Secretary considers 
appropriate. The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to the advisory board appointed under this 
subsection. 
(f) AVAILABILITY OF CENTER TO FOUNDATION.—Consistent with the 
mission of the Armed Forces and the efficient operation of the 
center, the Secretary may make facilities at the center available to 
the Foundation— 
(1) for its corporate activities; and 
(2) for such endeavors in the area of communications and 
electronics as the Secretary may consider appropriate. 
(g) OTHER AUTHORIZED USES.—(1) The Secretary may make the 
center available to the public and to other departments and agencies 
of the Government for research and study and for public exhibitions. 
The Secretary may charge for such uses as he considers necessary 
and appropriate. 
(2) Any money collected for the use of the facilities of the center 
shall be deposited to a special fund maintained by the Secretary for 
the maintenance and operation of the center. The Secretary shall 
require the Auditor General of the Army to audit the records of 
such fund at least once every two years and to report the results of 
the audits to the Secretary. 
SEC. 1460. DONATIONS BY COMMISSARY STORES OF CERTAIN UNMARKET-
ABLE FOOD 
(a) IN GENERAL.—Chapter 147 of title 10, United States Code, is 
amended by adding at the end thereof the following new section: 
10 use 2485. 
"§ 2485. Commissary stores: donation of unmarketable food 
"(a) The Secretary of a military department may donate com-
missary store food described in subsection (b) to authorized chari-
table nonprofit food banks. 
"(b) Food that may be donated under this section is food of a 
commissary store— 
"(1) that is— 
"(A) unmarketable; 
"(B) unsaleable; and 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 765 
"(C) certified as edible by appropriate food inspection 
technicians; and 
"(2) that would otherwise be destroyed as unusable. 
"(c) A donation under this section shall take place at the site of 
the commissary that is donating the food. 
"(d) A donation under this section may only be made to an entity 
that is authorized by the Secretary of Defense or the Secretary of 
Health and Human Services to receive donations under this section. 
"(e) This section does not authorize any service (including 
transportation) to be provided in connection with a donation under 
this section.". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by adding at the end thereof the 
following new item: 
"2485. Commissary stores: donation of unmarketable food." 
SEC. 1461. LIMITATION ON GRATUITIES AT NAVAL SHIPBUILDING CERE- 
5 USC 7301 note. 
MONIES 
(a) GENERAL RULE.—A Federal officer, employee, or Member of 
Congress may not accept, directly or indirectly, any tangible thing of 
value as a gift or memento in connection with a ceremony to mark 
the completion of a naval shipbuilding milestone. 
(b) EXCLUSION.—Subsection (a) does not apply to a gift or memento 
that has a value of less than $100. 
(c) DEFINITIONS.—For purposes of this section, the terms "officer", 
"employee", and "Member of Congress" have the meanings given 
those terms in sections 2104, 2105, and 2106, respectively, of title 5, 
United States Code. 
SEC. 1462. AUTHORITY TO TRANSFER CERTAIN AIRCRAFT 
(a) IN GENERAL.—The Secretary of the Navy may transfer title to 
an aircraft described in subsection (b) to the institution leasing the 
aircraft if the Secretary certifies— 
(1) that at the time of the transfer the aircraft is being used 
by the organization holding the aircraft for a purpose consistent 
with the use intended when the aircraft was first leased to the 
institution; and 
(2) that the Department of the Navy no longer needs the 
aircraft. 
(b) COVERED AIRCRAFT.—The authority of the Secretary of the 
Navy under subsection (a) applies with respect to an aircraft— 
(1) that on the date of the enactment of this Act is being 
leased by the Secretary to a State-supported educational institu-
tion; and 
(2) for which a lease for such aircraft began with such institu-
tion on or before January 1, 1976. 
(c) COMPENSATION.—A transfer under this section shall be made 
without compensation or reimbursement to the United States. 
SEC. 1463. AUTHORITY TO LEASE AIR FORCE HELICOPTERS TO THE STATE 
OF CALIFORNIA 
Notwithstanding any other provision of this or any other Act, the 
Secretary of the Air Force may lease not more that 12 UH-Fl 
helicopters to the Department of Forestry of the State of California 
for the purposes of fighting forest fires, search and rescue missions, 
and vegetation control activities. The lease of helicopters under this 
section shall be made subject to such terms and conditions as the 
99 STAT. 766 
PUBLIC LAW 99-145—NOV. 8, 1985 
Department of 
Energy National 
Security and 
Military 
Applications of 
Nuclear Energy 
Authorization 
Act of 1986. 
Secretary considers fair, reasonable, and necessary to protect the 
interests of the United States. 
SEC. 1464. SENSE OF THE CONGRESS CONCERNING ESTABLISHMENT OF 
TRAVEL OFFICES OR ACQUISITION OF TRAVEL SERVICES 
It is the sense of the Congress that the Secretary of each military 
department should provide, in the establishment of travel offices or 
the acquisition of travel services for official travel, for free and open 
competition among commercial travel agencies, scheduled airline 
traffic offices (SATOs), and other entities which provide such 
services. 
SEC. 146.5. AMERICAN STAGE EQUIPMENT FOR UNITED STATES PATRIOTIC 
EVENTS 
It is the sense of Congress that performing groups in the Armed 
Forces should use domestically manufactured entertainment sup-
port items, such as pianos and organs, sound and lighting equipment, 
and other items essential for quality entertainment, at patriotic and 
ceremonial events in the Capitol, on the Capitol Grounds, and at all 
other Federal buildings, unless there is no domestically manufac-
tured item of comparable quality and price. 
SEC. 1466. SALE OF CERTAIN RECORDINGS OF UNITED STATES AIR FORCE 
BAND 
(a) AUTHORIZED SALE.—Notwithstanding any other provision of 
law, the Secretary of the Air Force may produce recordings of the 
concert of the United States Air Force Band in Salt Lake City, Utah, 
on April 18 and 19, 1985, for commercial sale. 
(b) AUTHORIZED CONTRACT.—The Secretary may enter into an 
appropriate contract, under such terms as the Secretary determines 
to be in the best interest of the Government, for the production and 
sale authorized by subsection (a). 
TITLE XV—DEPARTMENT OF ENERGY NATIONAL 
SECURITY PROGRAMS 
SEC. 1501. SHORT TITLE 
This title may be cited as the "Department of Energy National 
Security and Military Applications of Nuclear Energy Authorization 
Act of 1986". 
PART A—NATIONAL SECURITY PROGRAMS AUTHORIZATIONS 
SEC. 1511. OPERATING EXPENSES 
Funds are authorized to be appropriated to the Department of 
Energy for fiscal year 1986 for operating expenses incurred in 
carrying out national security programs (including scientific re-
search and development in support of the Armed Forces, strategic 
and critical materials necessary for the common defense, and mili-
tary applications of nuclear energy and related management and 
support activities) as follows: 
(1) For naval reactors development, $489,000,000. 
(2) For weapons activities, $3,519,200,000, to be allocated as 
follows: 
(A) For research and development, $850,300,000. 
(B) For weapons testing, $537,800,000. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 767 
(C) For the defense inertial confinement fusion program, 
$145,000,000. 
(D) For production and surveillance, $1,887,400,000. 
(E) For program direction, $98,700,000. 
(3) For verification and control technology, $90,975,000, of 
which $3,800,000 shall be used for program direction. 
(4) For defense nuclear materials production, $1,556,300,000, 
to be allocated as follows: 
(A) For uranium enrichment, $208,900,000. 
(B) For production reactor operations, $576,380,000. 
(C) For 
processing 
of 
defense 
nuclear 
materials, 
$493,145,000, of which $74,800,000 shall be used for special 
isotope separation. 
(D) For supporting services, $256,575,000, of which 
$26,000,000 shall be used for the plasma separation process 
program. 
(E) For program direction, $21,300,000. 
(5) For defense nuclear weiste and byproduct management, 
$395,037,000, to be allocated as follows: 
(A) For interim waste management, $271,000,000. 
(B) For 
long-term 
waste 
management 
technology, 
$96,567,000. 
(C) For terminal waste storage, $25,070,000. 
(D) For program direction, $2,400,000. 
(6) For nuclear materials safeguards and security technology 
development program, $54,325,000, of which $6,925,000 shall be 
used for program direction. 
(7) For security investigations, $33,400,000. 
SEC. 1512. PLANT AND CAPITAL EQUIPMENT 
Funds are authorized to be appropriated to the Department of 
Energy for fiscal year 1986 for plant and capital equipment (includ-
ing planning, construction, acquisition, and modification of facili-
ties, land acquisition related thereto, and acquisition and fabrication 
of capital equipment not related to construction) necessary for 
national security programs as follows: 
(1) For weapons activities: 
Project 86-D-lOl, general plant projects, various loca-
tions, $26,900,000. 
Project 86-D-121, general plant projects, various loca-
tions, $28,700,000. 
Project 86-D-103, decontamination and waste treatment 
facility, Lawrence Livermore National Laboratory, Liver-
more, California, $3,700,000. 
Project 86-D-104, strategic defense facility, Sandia Na-
tional Laboratories, Albuquerque, New Mexico, $4,000,000. 
Project 86-D-105, Instrumentation Systems Laboratory, 
Sandia National Laboratories, Albuquerque, New Mexico, 
$6,200,000. 
Project 86-D-122, structural upgrade of existing pluto-
nium facilities, Rocky Flats Plant, Golden, Colorado, 
$3,000,000. 
Project 86-D-123, environmental hazards elimination, 
various locations, $8,700,000. 
Project 86-D-124, safeguards and site security upgrading, 
phase II, Mound Plant, Miamisburg, Ohio, $3,000,000. 
99 STAT. 768 
PUBLIC LAW 99-145—NOV. 8, 1985 
Project 86-D-125, safeguards and site security upgrade, 
phase II, Pantex Plant, Amarillo, Texas, $1,500,000. 
Project 86-D-130, Tritium loading facility replacement. 
Savannah River Plant, Aiken, South Carolina, $5,000,000. 
Project 86-D-133, Data Communications Laboratory, Los 
Alamos National Laboratory, Los Alamos, New Mexico, 
$3,000,000. 
Project 85-D-102, nuclear weapons research, develop-
ment, and testing facilities revitalization, phsise I, various 
locations, $65,400,000, for a total project authorization of 
$100,800,000. 
Project 85-D-103, safeguards and security enhancements, 
Lawrence Livermore National Laboratory and Sandia Na-
tional Laboratories, Livermore, California, $16,400,000, for 
a total project authorization of $21,100,000. 
Project 85-D-105, combined device assembly facility, 
Nevada Test Site, Nevada, $7,000,000, for a total project 
authorization of $14,600,000. 
Project 85-D-106, hardened engineering test building, 
Lawrence Livermore National Laboratory, Livermore, 
California, $1,900,000, for a total project authorization of 
$2,700,000. 
Project 85-D-112, enriched uranium recovery improve-
ments, Y-12 Plant, Oak Ridge, Tennessee, $15,300,000, for a 
total project authorization of $19,800,000. 
Project 85-D-113, powerplant and steam distribution 
system, Pantex Plant, Amarillo, Texas, $18,500,000, for a 
total project authorization of $23,000,000. 
Project 85-D-115, renovate plutonium building utility 
systems, Rocky Flats Plant, Golden, Colorado, $17,700,000, 
for a total project authorization of $20,600,000. 
Project 85-D-121, air and water pollution control facili-
ties, Y-12 Plant, Oak Ridge, Tennessee, $14,000,000, for a 
total project authorization of $19,000,000. 
Project 85-D-123, safeguards and site security upgrade, 
phase I, Pantex Plant, Amarillo, Texas, $4,000,000, for a 
total project authorization of $5,000,000. 
Project 85-D-124, safeguards and site security upgrade. 
Rocky Flats Plant, Golden, Colorado, $2,400,000, for a total 
project authorization of $3,400,000. 
Project 85-D-125, tactical bomb production facilities, var-
ious locations, $6,000,000, for a total project authorization of 
$16,000,000. 
Project 84-D-102, radiation-hardened integrated circuit 
laboratory, Sandia National Laboratories, Albuquerque, 
New Mexico, $15,500,000, for a total project authorization of 
$37,500,000. 
Project 84-D-104, nuclear materials storage facility, Los 
Alamos National Laboratory, Los Alamos, New Mexico, 
$12,100,000, for a total project authorization of $19,300,000. 
Project 84-D-107, nuclear testing facilities revitalization, 
various locations, $14,900,000, for a total project authoriza-
tion of $65,940,000. 
Project 84-D-112, Trident II warhead production facili-
ties, various locations, $60,700,000, for a total project 
authorization of $140,700,000. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 769 
Project 
84-D-113, 
anti-submarine 
warfare/standoff 
weapon warhead production facilities, various locations, 
$10,000,000. 
Project 84-D-115, electrical system expansion, Pantex 
Plant, Amarillo, Texas, $3,300,000, for a total project 
authorization of $14,800,000. 
Project 84-D-117, inert assembly and test facility, Pantex 
Plant, Amarillo, Texas, $400,000, for a total project 
authorization of $13,600,000. 
Project 84-D-118, high-explosive subassembly facility, 
Pantex Plant, Amarillo, Texas, $33,000,000, for a total 
project authorization of $40,000,000. 
Project 84-D-120, explosive component test facility. 
Mound Plant, Miamisburg, Ohio, $2,300,000, for a total 
project authorization of $22,300,000. 
Project 84-D-211, safeguards and site security upgrading, 
Y-12 Plant, Oak Ridge, Tennessee, $7,500,000, for a total 
project authorization of $23,000,000. 
Project 84-D-212, safeguards and site security upgrade, 
Pinellas Plant, Florida, $3,800,000, for a total project 
authorization of $7,500,000. 
Project 83-D-199, buffer land acquisition, Lawrence 
Livermore National Laboratory and Sandia National Lab-
oratories, Livermore, California, $10,000,000, for a total 
project authorization of $34,000,000. 
Project 82-D-107, utilities and equipment restoration, 
replacement, and upgrade, phase III, various locations, 
$170,000,000, 
for 
a 
total 
project 
authorization 
of 
$740,400,000. 
Project 82-D-lll, interactive graphics systems, various 
locations, $4,000,000, for a total project' authorization of 
$24,000,000. 
Project 82-D-144, Simulation Technology Laboratory, 
Sandia National Laboratories, Albuquerque, New Mexico, 
$10,300,000, for a total project authorization of $34,000,000. 
Project 79-7-0, Universal Pilot Plant, Pantex Plant, 
Amarillo, Texas, $4,500,000, for a total project authorization 
of $20,400,000. 
(2) For materials production: 
Project 86-D-146, general plant projects, various loca-
tions, $29,800,000. 
Project 86-D-148, special isotope separation plant (design 
only), site undesignated, $8,000,000. 
Project 86-D-149, productivity retention program, phase 
I, various locations, $24,200,000. 
Project 86-D-150, in-core neutron monitoring system, N 
reactor, Richland, Washington, $4,460,000. 
Project 86-D-151, PUREX electrical system upgrade, 
Richland, Washington, $2,500,000. 
Project 86-D-152, reactor electrical distribution system. 
Savannah River, South Carolina, $2,000,000. 
Project 86-D-153, additional line III furnace. Savannah 
River, South Carolina, $1,500,000. 
Project 86-D-154, effluent treatment facility, Savannah 
River, South Carolina, $2,500,000. 
Project 86-D-156, plantwide safeguards systems. Savan-
nah River, South Carolina, $3,000,000. 
99 STAT. 770 
PUBLIC LAW 99-145—NOV. 8, 1985 
Project 86-D-157, hydrofluorination system, FB-Line, 
Savannah River, South Carolina, $2,200,000. 
Project 85-D-137, vault safety special nuclear material 
inventory system, Richland, Washington, $1,900,000, for a 
total project authorization of $4,400,000. 
Project 85-D-139, fuel processing restoration, Idaho Fuels 
Processing Facility, Idaho National Engineering Labora-
tory, Idaho, $12,000,000, for a total project authorization of 
$22,000,000. 
Project 85-D-140, productivity and radiological improve-
ments. Feed Materials Production Center, Fernald, Ohio, 
$12,000,000, for a total project authorization of $18,000,000. 
Project 85-D-145, fuel production facility. Savannah 
River, South Carolina, $16,000,000, for a total project 
authorization of $25,800,000. 
Project 84-D-135, process facility modifications, Rich-
land, Washington, $15,000,000, for a total project authoriza-
tion of $32,500,000. 
Project 84-D-136, enriched uranium conversion facility 
modifications, 
Y-12 
Plant, 
Oak 
Ridge, 
Tennessee, 
$7,200,000, for a total project authorization of $19,600,000. 
Project 
83-D-148, 
non-radioactive 
hazardous 
waste 
management, Savannah River, South Carolina, $3,100,000, 
for a total project authorization of $22,100,000. 
Project 82-D-124, restoration of production capabilities, 
phases II, III, IV, and V, various locations, $43,900,000, for a 
total project authorization of $348,534,000. 
Project 82-D-201, special plutonium recovery facilities, 
JB-Line, Savannah River, South Carolina, $4,400,000, for a 
total project authorization of $83,800,000. 
(3) For defense waste and byproducts management: 
Project 86-D-171, general plant projects, interim waste 
operations and long-term waste management technology, 
various locations, $24,451,000. 
Project 86-D-172, B plant F filter, Richland, Washington, 
$1,000,000. 
Project 86-D-173, central waste disposal facility, Oak 
Ridge, Tennessee, $1,000,000. 
Project 86-D-174, low-level waste processing and ship-
ping system, Feed Materials Production Center, Fernald, 
Ohio, $2,500,000. 
Project 86-D-175, Idaho National Engineering Labora-
tory security ugrade, Idaho National Engineering Labora-
tory (INEL), Idaho, $2,000,000. 
Project 85-D-157, seventh calcined solids storage facility, 
Idaho Chemical Processing Plant, Idaho National Engineer-
ing Laboratory, Idaho, $14,500,000, for a total project 
authorization of $21,500,000. 
Project 85-D-158, central warehouse upgrade, Richland, 
Washington, $5,000,000, for a total project authorization of 
$5,700,000. 
Project 85-D-159, new waste transfer facilities) H-Area, 
Savannah River, South Carolina, $9,000,000, for a total 
project authorization of $20,000,000. 
Project 85-D-160, test reactor area security system 
upgrade, Idaho National Engineering Laboratory (INEL), 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 771 
Idaho, $2,250,000, for a total project authorization of 
$4,250,000. 
Project 81-T-105, defense waste processing facility. 
Savannah River, South Carolina, $165,000,000, for a total 
project authorization of $597,500,000. 
(4) For verification and control technology: 
Project 85-D-171, space science laboratory, Los Alamos, 
New Mexico, $4,500,000, for a total project authorization of 
$5,500,000. 
(5) Nuclear safeguards and security: 
Project 86-D-186, Nuclear Safeguards Technology Lab-
oratory, Los Alamos National Laboratory, Los Alamos, New 
Mexico, $1,000,000. 
(6) For naval reactors development: 
Project 86-N-lOl, general plant projects, various loca-
tions, $4,000,000. 
Project 86-N-104, reactor modifications, advance test 
reactor, 
Idaho 
National 
Engineering 
Laboratory, 
$4,500,000. 
Project 82-N-lll, materials facility, Savannah River, 
South Carolina, $11,000,000, for a total project authoriza-
tion of $176,000,000. 
Project 81-T-112, modifications and additions to proto-
type facilities, various locations, $27,000,000, for a total 
project authorization of $137,000,000. 
(7) For capital equipment not related to construction: 
(A) for weapons activities, $267,750,000; 
(B) for inertial confinement fusion, $10,000,000; 
(C) for materials production, $123,440,000; 
(D) for defense waste and byproducts management, 
$38,997,000; 
(E) for verification and control technology, $5,600,000; 
(F) for nuclear safeguards and security, $4,600,000; and 
(G) for naval reactors development, $29,000,000. 
PART B—RECURRING GENERAL PROVISIONS 
SEC. 1521. REPROGRAMMING 
(a) NOTICE TO CONGRESS.—Except as otherwise provided in this 
t i t l e -
C
D no amount appropriated pursuant to this title may be used 
for any program in excess of 105 percent of the amount 
authorized for that program by this title or $10,000,000 more 
than the amount authorized for that program by this title, 
whichever is the lesser, and 
(2) no amount appropriated pursuant to this title may be used 
for any program which has not been presented to, or requested 
of, the Congress, 
unless a period of 30 calendar days (not including any day on which 
either House of Congress is not in session because of adjournment of 
more than three calendar days to a day certain) has passed after 
receipt by the appropriate committees of Congress of notice from the 
Secretary of Energy (hereinafter in this part referred to as the 
"Secretary") 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, or unless each such committee 
99 STAT. 772 
PUBLIC LAW 99-145—NOV. 8, 1985 
before the expiration of such period has transmitted to the Sec-
retary written notice to the effect that such committee has no 
objection to the proposed action. 
(b) LIMITATION ON AMOUNT OBLIGATED.—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. 
SEC. 1522. LIMITS ON GENERAL PLANT PROJECTS 
(a) IN GENERAL.—The Secretary may carry out any construction 
project under the general plant projects provisions authorized by 
this title if the total estimated cost of the construction project does 
not exceed $1,200,000. 
(b) REPORT TO CONGRESS.—If at any time during the construction 
of any general plant project authorized by this title, the estimated 
cost of the project is revised because of unforeseen cost variations 
and the revised cost of the project exceeds $1,200,000, the Secretary 
shall immediately furnish a complete report to the appropriate 
committees of Congress explaining the reasons for the cost vari-
ation. 
SEC. 1523. LIMITS ON CONSTRUCTION PROJECTS 
(a) IN GENERAL.—Whenever the current estimated cost of a 
Ante, p. 767. 
construction project, which is authorized by section 1512 of this title, 
or which is in support of national security programs of the Depart-
ment of Energy and was authorized by any previous Act, exceeds by 
more than 25 percent the higher of— 
(1) the amount authorized for the project; or 
(2) the amount of the total estimated cost for the project as 
shown in the most recent budget justification data submitted to 
the Congress, 
construction may not be started or additional obligations incurred in 
connection with the project above the total estimated cost, as the 
case may be, unless a period of 30 calendar days (not including any 
day in which either House of Congress is not in session because of 
adjournment of more than three days to a day certain) has passed 
after receipt by the appropriate committees of Congress of written 
notice from the Secretary containing a full and complete statement 
of the action proposed to be taken and the facts and circumstances 
relied upon in support of the action, or unless each committee before 
the expiration of such period has notified the Secretary it has no 
objection to the proposed action. 
(b) EXCEPTION.—Subsection (a) shall not apply to any construction 
project which h£is a current estimated cost of less than $5,000,000. 
SEC. 1524. FUND TRANSFER AUTHORITY 
To the extent specified in appropriation Acts, funds appropriated 
pursuant to this title may be transferred to other agencies of the 
Government for the performance of the work for which the funds 
were appropriated, and funds so transferred may be merged with 
the appropriations of the agency to which the funds are transferred. 
SEC. 1525. AUTHORITY FOR CONSTRUCTION DESIGN 
(a) IN GENERAL.—(1) Within the amounts authorized by this title 
for plant engineering and design, the Secretary may carry out 
advance planning and construction designs (including architectural 
and engineering services) in connection with any proposed construe-
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 773 
tion project if the total estimated cost for such planning and design 
does not exceed $2,000,000. 
(2) In any case in which the total estimated cost for such planning 
and design exceeds $300,000, the Secretary shall notify the appro-
priate committees of Congress in writing of the details of such 
project at least 30 days before any funds are obligated for design 
services for such project. 
(b) SPECIFIC AUTHORITY REQUIRED.—In any case in which the total 
estimated cost for advance planning and construction design in 
connection with any construction project exceeds $2,000,000, funds 
for such design must be specifically authorized by law. 
SEC. 1526. AUTHORITY FOR EMERGENCY CONSTRUCTION DESIGN 
In addition to the advance planning and construction design 
authorized by section 1512, the Secretary may perform planning and 
design utilizing available funds for any Department of Energy 
defense activity construction project whenever the Secretary deter-
mines that the design must proceed expeditiously in order to meet 
the needs of national defense or to protect property or human life. 
SEC. 1527. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS 
OF THE DEPARTMENT OF ENERGY 
Subject to the provisions of appropriation Acts, amounts appro-
priated 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. 1528. ADJUSTMENTS FOR PAY INCREASES 
Appropriations authorized by this title for salary, pay, retirement, 
or other benefits for Federal employees may be increased by such 
amounts as may be necessary for increases in such benefits au-
thorized by law. 
SEC. 1529. AVAILABILITY OF FUNDS 
When so specified in an appropriation Act, amounts appropriated 
for "Operating Expenses" or for "Plant and Capital Equipment" 
may remain available until expended. 
PART C—PROGRAM REVISIONS AND MISCELLANEOUS PROVISIONS 
SEC. 1531. GENERAL REDUCTION 
The total amount that may be appropriated pursuant to the 
authorizations in this title is the amount equal to the sum of the 
amounts authorized in this title reduced by $32,280,000. Of such 
reduction— 
(1) $10,000,000 shall be derived from funds for acquisition of 
automated data processing and computer equipment; 
(2) $14,000,000 shall be derived from savings from manage-
ment initiatives; and 
(3) $8,280,000 shall be derived from proposed rescission 
R85-80. 
SEC. 1532. COMMUNITY ASSISTANCE PAYMENTS 
(a) FINAL SETTLEMENT.—Subject to the provisions of appropriation 
Acts, the Secretary of Energy is authorized to obligate during fiscal 
Ante, p. 767. 
Contract. 
Tennessee. 
42 u s e 2391 
note. 
99 STAT. 774 
PUBLIC LAW 99-145—NOV. 8, 1985 
year 1986 not more than $41,133,000 from funds available to the 
Department of Energy for the purpose of carrying out a contract 
with Anderson County and Roane County, Tennessee, and the City 
of Oak Ridge, Tennessee, that would provide a final financial settle-
ment with those entities and terminate all annual assistance pay-
ments made to those entities pursuant to section 91 of the Atomic 
Energy Community Act of 1955 (42 U.S.C. 2391), and for advance 
payment of payments in lieu of property taxes for the fiscal years 
1986 through 1996 authorized by section 168 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2208). 
(b) REPORT TO CONGRESS.—Not later than February 1, 1986, the 
Secretary of Energy shall submit to the appropriate committees of 
Congress a report and the Secretary's recommendations concerning 
any need for any further financial assistance payments to local 
governmental entities pursuant to the Atomic Energy Community 
Act of 1955. In making such recommendations, the Secretary shall 
consider— 
(1) the criteria established by section 91 of the Atomic Energy 
42 use 2121. 
Act of 1954; 
(2) changes in the financial circumstances of State and local 
governmental entities since 1955; 
(3) other forms of Federal assistance to State and local govern-
mental entities provided since 1955; and 
(4) the deficit of the Federal budget. 
Contract. 
(c) LIMITATION.—No funds may be obligated for the purposes set 
forth in subsection (a) until— 
(1) the Secretary has submitted to the appropriate committees 
of Congress a copy of an executed contract that complies with 
the requirements of that subsection; and 
(2) a period of 30 calendar days (not including any day on 
which either House of Congress is not in session because of 
adjournment of more than three calendar days to a day certain) 
has passed after receipt of such contract. 
SEC. 1533. IMPROVEMENTS TO DEPARTMENT OF ENERGY BUILDING AT 
OAK RIDGE, TENNESSEE 
Research and 
Subject to the provisions of appropriations Acts, the Secretary of 
development. 
Energy is authorized to obligate not more than $5,000,000 during 
fiscal year 1986 from funds available to the Department of Energy to 
renovate a building owned by the Department of Energy at Oak 
Ridge, Tennessee, if the Secretary determines that the Department's 
research and development requirements of the Strategic Defense 
Initiatives program require such renovations. 
42 u s e 7256a. 
SEC. 1534. COSTS NOT ALLOWED UNDER COVERED CONTRACTS 
(a) IN GENERAL.—The following costs are not allowable under a 
covered contract: 
(1) Costs of entertainment, including amusement, diversion, 
and social activities and any costs directly associated with such 
costs (such as tickets to shows or sports events, meals, lodging, 
rentals, transportation, and gratuities). 
(2) Costs incurred to influence (directly or indirectly) legisla-
tive action on any matter pending before Congress or a State 
legislature. 
(3) Costs incurred in defense of any civil or criminal fraud 
proceeding or similar proceeding (including filing of any false 
certification) brought by the United States where the contractor 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 775 
is found liable or has pleaded nolo contendere to a charge of 
fraud or similar proceeding (including filing of false certifi-
cation). 
(4) Payments of fines and penalties resulting from violations 
of, or failure to comply with, Federal, State, local, or foreign 
laws and regulations, except when incurred as a result of 
compliance with specific terms and conditions of the contract or 
specific written instructions from the contracting 
officer 
authorizing in advance such payments in accordance with 
applicable regulations of the Secretary of Energy. 
(5) Costs of membership in any social, dining, or country club 
or organization. 
(6) Costs of alcoholic beverages. 
(7) Contributions or donations, regardless of the recipient. 
(8) Costs of advertising designed to promote the contractor or 
its products. 
(9) Costs of promotional items and memorabilia, including 
models, gifts, and souvenirs. 
(10) Costs for travel by commercial aircraft or by travel by 
other than common carrier that is not necessary for the 
performance of the contract and the cost of which exceeds the 
amount of the standard commercial fare. 
(b) REGULATIONS.—Not later than 150 days after the date of the 
enactment of this Act, the Secretary of Energy shall prescribe 
regulations to implement this section. Such regulations may estab-
lish appropriate definitions, exclusions, limitations, and qualifica-
tions. Such regulations shall be published in accordance with section 
22 of the Office of Federal Procurement Policy Act (41 U.S.C. 418b). 
98 Stat. 3076. 
(c) DEFINITION.—In this section, "covered contract" means a con-
tract for an amount more than $100,000 entered into by the Secre-
tary of Energy obligating funds appropriated for national security 
programs of the Department of Energy. 
(d) EFFECTIVE DATE.—Subsection (a) shall apply with respect to 
costs incurred under a covered contract on or after 30 days after the 
regulations required by subsection (b) are issued. 
SEC. 1535. TECHNICAL AMENDMENTS 
(a) IN GENERAL.—Sections 1623(a) and 1626 of the Department of 
Energy National Security and Military Applications of Nuclear 
Energy Authorization Act of 1985 (title XVI of Public Law 98-525) 
98 Stat. 2645, 
are amended by striking out "section 302" and inserting in lieu 
thereof "section 1602". 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
shall be considered to have been made on the date of the enactment 
of the Department of Energy National Security and Military 
Applications of Nuclear Energy Authorization Act of 1985. 
TITLE XVI—OTHER GENERAL PROVISIONS 
PART A—CIVIL DEFENSE 
SEC. 1601. AUTHORIZATION OF APPROPRIATIONS 
There is hereby authorized to be appropriated for fiscal year 1986 
to carry out provisions of the Federal Civil Defense Act of 1950 (50 
U.S.C. App. 2251 et seq.) the sum of $130,000,000. 
2646. 
99 STAT. 776 
PUBLIC LAW 99-145—NOV. 8, 1985 
PART B—NATIONAL DEFENSE STOCKPILE 
SEC. 1611. FUNDING FOR NATIONAL DEFENSE STOCKPILE 
50 u s e 98h 
(a) ONE-YEAR EXTENSION OF FUNDING FOR STOCKPILE TRANSACTION 
^°^- 
FUND FROM NAVAL PETROLEUM RESERVE RECEIPTS.—Section 905 
of 
the Department of Defense Authorization Act, 1985 (Public Law 
98-525; 98 Stat. 2574), is amended by striking out "during fiscal year 
1985" and inserting in lieu thereof "during fiscal years 1985 and 
1986". 
50 use 98d note. 
(b) CONFORMING AMENDMENT.—Section 903(b) of such Act (98 Stat. 
2573) is amended by striking out "October 1, 1986" and inserting in 
lieu thereof "October 1, 1987". 
SEC. 1612. PROHIBITION OF REDUCTIONS IN STOCKPILE GOALS 
50 use 98d note. 
(a) FREEZE ON GoALS.—(1) No action may be taken before Octo-
ber 1, 1986, to implement or administer any change in a stockpile 
goal in effect on October 1, 1984, that results in a reduction in the 
quality or quantity of any strategic and critical material to be 
acquired for the National Defense Stockpile. 
(b) DEFINITION.—For purposes of subsection (a), the term "stock-
pile goal" means a determination made by the President under 
section 3(a) of the Strategic and Critical Materials Stock Piling Act 
(50 U.S.C. 98b) with respect to the National Defense Stockpile. 
SEC. 1613. STUDY OF LOSS OF PRODUCTION CAPACITY OF CRITICAL 
FERROALLOY PRODUCTS 
(a) REQUIREMENT FOR STUDY.—Recognizing the vital role that 
ferroalloy products have in industries crucial to the national defense, 
the Secretary of Defense shall conduct a study to determine what 
effect the loss of all capacity by the United States to produce 
domestic ferroalloys would have on the defense industrial base and 
on industrial preparedness of the United States. 
(b) SPECIFIC REQUIREMENTS.—Such study shall include an evalua-
tion of the effect that the loss of production capacity by the United 
States for ferrochrome, ferromanganese, ferrosilicon (all grades), 
silicon manganese, chromium metal, and other militarily critical 
ferroalloy products would have on the industrial base and on indus-
trial preparedness of the United States. 
(c) CONSULTATION.—The Secretary 
shall 
conduct 
such 
study 
through the Undersecretary of Defense for Policy in consultation 
with the Director of the Federal Emergency Management Agency 
and the Secretary of the Interior. 
(d) SUBMISSION OF REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit 
to Congress a report containing the results of the study conducted 
under subsection (a). Such report shall, to the extent practicable, be 
unclassified. 
PART C — O T H E R PROVISIONS 
SEC. 1621. SENSE OF THE CONGRESS EXPRESSING SUPPORT FOR THE 
SELECTIVE SERVICE REGISTRATION PROGRAM 
(a) FINDINGS.—The Congress makes the following 
findings: 
(1) The program of peacetime registration of young men 
50 u s e app. 451. 
under the Military Selective Service Act contributes to the 
national security by reducing the time required for full defense 
mobilization. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 777 
(2) The Selective Service registration program is an important 
signal to our allies and to our potential adversaries of the 
United States defense commitment. 
(3) Since the resumption of selective service registration, 
more than 13,500,000 young men have registered with Selective 
Service. 
(b) SENSE OF CONGRESS.—In view of these findings, it is the sense 
of Congress that the President should recognize, by Presidential 
proclamation, the contribution of our young men to the success of 
the peacetime registration program. 
SEC. 1622. PROHIBITION ON CIVIL SERVICE EMPLOYMENT OF PERSONS 
WHO FAIL TO REGISTER UNDER THE MILITARY SELECTIVE 
SERVICE ACT 
(a) IN GENERAL.—(1) Subchapter I of chapter 33 of title 5, United 
States Code, is amended by adding at the end thereof the following 
new section: 
"§ 3328. Selective Service registration 
5 USC 3328. 
"(a) An individual— 
"(1) who was born after December 31, 1959, and is or was 
required to register under section 3 of the Military Selective 
Service Act (50 U.S.C. App. 453); and 
"(2) who is not so registered or knowingly and willfully did not 
so register before the requirement terminated or became inap-
plicable to the individual, 
shall be ineligible for appointment to a position in an Executive 
agency. 
"(b) The Office of Personnel Management, in consultation with 
the Director of the Selective Service System, shall prescribe regula-
tions to carry out this section. Such regulations shall include provi-
sions prescribing procedures for the adjudication within the Office of 
determinations of whether a failure to register was knowing and 
willful. Such procedures shall require that such a determination 
may not be made if the individual concerned shows by a preponder-
ance of the evidence that the failure to register was neither knowing 
nor willful.". 
(2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3327 the 
following new item: 
"3328. Selective Service registration.". 
(b) REPORT.—(1) The Office of Personnel Management shall submit 
to Congress a report— 
(A) as to whether it is practicable to apply section 3328 of title 
5, United States Code (as added by subsection (a)), to persons Supra. 
born before January 1, 1960; and 
(B) on the relative costs and benefits of corroborating registra-
tion of individuals under the Military Selective Service Act for 
50 USC app. 451. 
the purposes of that section on a spot-check basis or on an 
individual basis. 
(2) The report shall be submitted not later than February 1, 1986. 
99 STAT. 778 
PUBLIC LAW 99-145—NOV. 8, 1985 
SEC. 1623. AUTHORITY TO PROVIDE COAST GUARD COMMANDANT RESI-
DENCE-TO-WORK 
TRANSPORTATION 
PROVIDED 
OTHER 
SERVICE CHIEFS 
Effective on October 1, 1985, section 660 of title 14, United States 
Code, is amended by adding at the end thereof the following new 
subsection: 
"(e) Passenger motor vehicles of the United States may be used to 
provide transportation between the residence and place of work of 
the Commandant." 
SEC. 1624. ACCEPTANCE OF CERTAIN VOLUNTEER SERVICES 
(a) EXTENSION OF AUTHORITY TO COAST GUARD.—Section 1588(a) of 
title 10, United States Code, is amended— 
(1) by striking out "Secretary of a military department" and 
inserting in lieu thereof "Secretary concerned"; and 
(2) by striking out "operated by that military department" 
and inserting in lieu thereof "operated by the military depart-
ment concerned or the Coast Guard, as appropriate". 
10 use 1588 
(b) EFFECTIVE DATE.—The amendments made by this section shall 
note. 
take effect on October 1,1985. 
24 u s e 43 note. 
SEC. 1625. AUTHORITY TO EXEMPT CERTAIN PHYSICIANS AT SOLDIERS' 
AND AIRMEN'S HOME FROM REDUCTIONS IN RETIRED PAY 
(a) IN GENERAL.—The Governor of the United States Soldiers' and 
Airmen's Home may exempt, at any time, not more than two 
physicians employed by the Home from the restrictions in subsec-
tions (a), (b), and (c) of section 5532 of title 5, United States Code, if 
the Governor determines that such exemptions are necessary to 
recruit or retain well-qualified physicians for the Home. An exemp-
tion granted under this section shall terminate upon any break in 
employment with the Home by a physician of three days or more. 
(b) APPUCABIUTY.—An exemption granted to a person under 
subsection (a) shall apply to the retired pay of that person beginning 
with the first month after the month in which the exemption is 
granted. 
SEC. 1626. MANAGEMENT OF MILITARY RECORDS MAINTAINED BY THE 
NATIONAL ARCHIVES AND RECORDS ADMINISTRATION 
(a) FINDINGS.—The Congress finds that— 
(1) the National Archives and Records Administration has 
received a substantial number of military records; and 
(2) by reason of the manner in which such records are main-
tained, many of such records are not readily accessible to the 
public. 
(b) REPORT.—(1) Not later than March 31, 1986, the Archivist of 
the United States shall submit to Congress a report outlining a 
plan— 
: !. . 
(A) for improving the management, maintenance, storage, 
and preservation of military records; and 
(B) for improving public access to such records. 
(2) In preparing the report, the Archivist shall consider rec-
ommendations received from— 
(A) officials of the military departments responsible for the 
maintenance and storage of military records; and 
(B) interested public groups. 
PUBLIC LAW 99-145—NOV. 8, 1985 
99 STAT. 779 
SEC. 1627. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM 
(a) DESIGNATION OF PROGRAM.—Section 419A of the Higher Ekiu- 20 use 
cation Act of 1965 is amended by striking out "Federal Merit ^^'^^^~^\a(\n 
Scholarship Program" and inserting in lieu thereof "Robert C. Byrd ^"*^' ^ '^^"" 
Honors Scholarship Program". 
(b) DESIGNATION OF BYRD SCHOLARS.—Section 419C of such Act is Ante, p. 2900. 
amended by adding at the end thereof the following new subsection: ?2rH?^o 
"(d) Individuals awarded scholarships under this subpart shall be 
' ^ ^^• 
known as 'Bjnrd Scholars'.". 
(c) CONFORMING AMENDMENTS.—Section 419E(3) of such Act is Ante, p. 290i. 
amended"^ 
UoC 
(1) by striking out "Federal"; and 
i070d-35. 
(2) by inserting "under this subpart" after "scholarships". 
(d) CLERICAL AMENDMENT.—The heading of subpart 6 of part A of 
title IV of such Act is amended to read as follows: 
Ante, p. 2900. 
"Subpart 6—Robert C. Byrd Honors Scholarship Program". 
SEC. 1628. POSTAGE STAMP COMMEMORATING THE 350TH ANNIVERSARY 
OF THE ESTABLISHMENT OF THE UNITED STATES NATIONAL 
GUARD 
It is the sense of the Senate that the United States Postal Service 
should issue a postage stamp during 1986 commemorating the 350th 
anniversary of the establishment of the United States National 
Guard. 
Approved November 8, 1985. 
LEGISLATIVE HISTORY—S. 1160 (H.R. 1872) (H.R. 3606): 
HOUSE REPORTS: No. 99-81 accompanying H.R. 1872 (Comm. on Armed Services) 
and No. 99-235 (Comm. of Conference). 
SENATE REPORT No. 99-118 (Comm. of Conference). 
CONGRESSIONAL RECORD, Vol. 131 (1985): 
May 15, June 18-21, 25-27, H.R. 1872 considered and passed House. 
May 17, 20-23, June 3-5, S. 1160 considered and passed Senate. 
June 27, S. 1160 considered and passed House, amended, in lieu of H.R. 1872. 
July 30, Senate agreed to conference report. 
Oct. 29, House agreed to conference report. 
51-194 O - 88 - 26 : QL. 3 
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