National Defense Authorization Act for Fiscal Year 1997
PL 104-201 (H.R.3230), enacted 09/23/1996

110 STAT. 2422 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Public Law 104-201 
104th Congress 
Sept. 23, 1996 
[H.R. 3230] 
National Defense 
Authorization 
Act for Fiscal 
Year 1997. 
An Act 
To authorize appropriations for fiscal year 1997 for military activities of the 
Department of Defense, for military construction, and for defense activities of 
the Department of Energy, to prescribe personnel strengths for such fiscal year 
for the Armed Forces, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "National Defense Authorization 
Act for Fiscal Year 1997". 
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS. 
(a) DIVISIONS.—^This Act is organized into three divisions as 
follows: 
(1) Division A—Department of Defense Authorizations. 
(2) Division B—Military Construction Authorizations. 
(3) Division C—Department of Energy National Security 
Authorizations and Other Authorizations. 
(b) TABLE OF CONTENTS.—^The table of contents for this Act 
is as follows: 
Sec. 1. Short title. 
Sec. 2. Organization of Act into divisions; table of contents. 
Sec. 3. Congressional defense committees defined. 
DIVISION A—DEPARTMENT OF DEFENSE AUTHORIZATIONS 
TITLE I—PROCUREMENT 
Subtitle A—^Authorization of Appropriations 
Sec. 101. Army. 
Sec. 102. Navy and Marine Corps. 
Sec. 103. Air Force. 
Sec. 104. Defense-wide activities. 
Sec. 105. Reserve components. 
Sec. 106. Defense Inspector General. 
Sec. 107. Chemical Demilitarization Program. 
Sec. 108. Defense health programs. 
Subtitle B—^Army Programs 
Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior helicopters. 
Sec. 112. Multiyear procurement authority for Army programs. 
Sec. 113. Bradley TOW 2 Test Program sets. 
Subtitle C—^Navy Programs 
Sec. 121. Nuclear attack submarine programs. 
Sec. 122. Arleigh Burke class destroyer program. 
Sec. 123. EA-6B aircraft reactive jammer program. 
Sec. 124. T-39N trainer aircraft for the Navy. 
Sec. 125. Penguin missile program. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2423 
Subtitle D—^Air Force Programs 
Sec. 131. Repeal of limitation on procurement of F-15E aircraft. 
Sec. 132. Modification to multiyear procurement authority for C-17 aircraft pro-
gram. 
Subtitle E—Other Matters 
Sec. 141. Assessments of modernization priorities of the Reserve components. 
Sec. 142. Destruction of existing stockpile of lethal chemical agents and munitions. 
Sec. 143. Extension of authority to carry out Armament Retooling and Manufactur-
ing Support Initiative. 
TITLE 
II—RESEARCH, 
DEVELOPMENT, 
TEST, 
AND 
EVALUATION 
Subtitle A—^Authorization of Appropriations 
Sec. 201. Authorization of appropriations. 
Sec. 202. Amount for basic and applied research. 
Sec. 203. Dual-use technology programs. 
Sec. 204. Defense Special Weapons Agency. 
Subtitle B—^Program Requirements, Restrictions, and Limitations 
Sec. 211. Space launch modernization. 
Sec. 212. Space-Based Infrared System program. 
Sec. 213. Clementine 2 micro-satellite development program. 
Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft. 
Sec. 215. Live-fire survivability testing of F-22 aircraft. 
Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance aircraft. 
Sec. 217. Cost analysis of F-22 aircraft program. 
Sec. 218. F-22 aircraft program reports. 
Sec. 219. Cost-benefit analysis of F/A-18EVF aircraft program. 
Sec. 220. Joint Advanced Strike Technology (JAST) program. 
Sec. 221. Unmanned aerial vehicles. 
Sec. 222. High altitude endurance unmanned aerial reconnaissance system. 
Sec. 223. Cyclone class patrol craft self-defense. 
Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber Optic 
Guided Missile (EFOG-M) system. 
Sec. 225. Hydra-70 rocket product improvement program. 
Sec. 226. Federally funded research and development centers. 
Sec. 227. Demilitarization of conventional munitions, rockets, and explosives. 
Sec. 228. Research activities of the Defense Advanced Research Projects Agency re-
lating to chemical and biological warfare defense technology. 
Sec. 229. Certification of capability of United States to prevent illegal importation 
of nuclear, biological, or chemical weapons. 
Sec. 230. Nonlethal weapons and technologies programs. 
Sec. 231. Counterproliferation support program. 
Subtitle C—Ballistic Missile Defense Programs 
Sec. 241. Funding for balUstic missile defense programs for fiscal year 1997. 
Sec. 242. Certification of capability of United States to defend against single 
ballistic missile. 
Sec. 243. Report on ballistic missile defense and proUferation. 
Sec. 244. Revision to annual report on ballistic missile defense program. 
Sec. 245. Report on Air Force National Missile Defense Plan. 
Sec. 246. Capability of National Missile Defense system. 
Sec. 247. Actions to limit adverse effects on private sector employment of establish-
ment of National Missile Defense Joint Program Office. 
Sec. 248. ABM Treaty defined. 
Subtitle D—Other Matters 
Sec. 261. Maintenance and repair at Air Force installations. 
Sec. 262. Report relating to Small Business Innovation Research Program. 
Sec. 263. Amendment to University Research Initiative Support program. 
Sec. 264. Amendments to Defense Experimental Program To Stimulate Competitive 
Research. 
Sec. 265. Elimination of report on the use of competitive procedures for the award 
of certain contracts to colleges and universities. 
Sec. 266. Pilot program for transfer of defense technology information to private in-
dustry. 
Sec. 267. Research under transactions other than contracts and grants. 
Sec. 268. Desalting technologies. 
Sec. 269. Evaluation of digital video network equipment used in Olsonpic games. 
110 STAT. 2424 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Sec. 270. Annual joint warfighting science and technology plan. 
Subtitle E—^National Oceanographic Partnership Program 
Sec. 281. Findings. 
Sec. 282. National Oceanographic Partnership Program. 
TITLE in—OPERATION AND MAINTENANCE 
Subtitle A—Authorization of Appropriations 
Sec. 301. Operation and maintenance funding. 
Sec. 302. Working capital funds. 
Sec. 303. Armed Forces Retirement Home. 
Sec. 304. Transfer from National Defense Stockpile Transaction Fund. 
Sec. 305. Civil Air Patrol Corporation. 
Sec. 306. Availability of additional fiinds for antiterrorism activities. 
Sec. 307. Nonlethal weapons capabilities. 
Sec. 308. SR-71 contingency reconnaissance force. 
Subtitle B—Depot-Level Activities 
Sec. 311. Extension of authority for aviation depots and naval shipyards to engage 
in defense-related production and services. 
Sec. 312. Test programs for modemization-through-spares. 
Subtitle C—Environmental Provisions 
Sec. 321. Defense contractors covered by requirement for reports on contractor re-
imbursement costs for response actions. 
Sec. 322. Establishment of separate environmental restoration accounts for each 
military department. 
Sec. 323. Payment of stipulated penalties assessed under CERCLA. 
Sec. 324. Shipboard solid waste control. 
Sec. 325. Authority to develop and implement land use plans for defense environ-
mental restoration program. 
Sec. 326. Pilot program to test alternative technology for limiting air emissions 
during shipyard blasting and coating operations. 
Sec. 327. Agreements for services of other agencies in support of environmental 
technology certification. 
Sec. 328. Repeal of redundant notification and consultation requirements regarding 
remedial investigations and feasibility studies at certain installations to 
be closed under the base closure laws. 
Sec. 329. Authority for agreements with Indian tribes for services under environ-
mental restoration program. 
Sec. 330. Authority to withhold listing of Federal facilities on National Priorities 
List. 
Sec. 331. Clarification of meaning of uncontaminated property for purposes of 
transfer by the United States. 
Sec. 332. Conservation and cultural activities. 
Sec. 333. Navy program to monitor ecological effects of organotin. 
Sec. 334. Authority to transfer contaminated Federal property before completion of 
required response actions. 
Subtitle D—Commissaries and Nonappropriated Fund Instrumentalities 
Sec. 341. Contracts with other agencies to provide or obtain goods and services to 
promote efficient operation and management of exchanges and morale, 
welfare, and recreation activities. 
Sec. 342. Noncompetitive procurement of brand-name commercial items for resale 
in commissary stores. 
Sec. 343. Prohibition of sale or rental of sexually explicit material. 
Subtitle E—Performance of Functions by Private-Sector Sources 
Sec. 351. Extension of requirement for competitive procurement of printing and 
duplication services. 
Sec. 352. Reporting requirements under demonstration project for purchase of fire, 
security, police, pubhc works, and utility services from local government 
agencies. 
Subtitle F—Other Matters 
Sec. 361. Authority for use of appropriated funds for recruiting functions. 
Sec. 362. Training of members of the uniformed services at non-Government facili-
ties. 
Sec. 363. Requirement for preparation of plan for improved operation of working-
capital funds and effect of failure to produce an approved plan. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2425 
Sec. 364. Increase in capital asset threshold under Defense Business Operations 
Fund. 
Sec. 365. Expansion of authority to donate unusable food. 
Sec. 366. Assistance to committees involved in inauguration of the President. 
Sec. 367. Department of Defense support for sporting events. 
Sec. 368. Storage of motor vehicle in lieu of transportation. 
Sec. 369. Security protections at Department of Defense facilities in National 
Capital Region. 
Sec. 370. Administration of midshipmen's store and other naval academy support 
activities as nonappropriated fiind instrumentality. 
Sec. 371. Reimbursement under agreement for instruction of civilian students at 
Foreign Language Institute of the Defense Language Institute. 
Sec. 372. Assistance to local educational agencies that benefit dependents of 
members of the Armed Forces and Department of Defense civilian 
employees. 
Sec. 373. Renovation of building for Defense Finance and Accounting Service 
Center, Fort Benjamin Harrison, Indiana. 
Sec. 374. Food donation pilot program at service academies. 
Sec. 375. Authority of Air National Guard to provide certain services at Lincoln 
Municipal Airport, Lincoln, Nebraska. 
Sec. 376. Technical amendment regarding Impact Aid program. 
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS 
Subtitle A—^Active Forces 
Sec. 401. End strengths for active forces. 
Sec. 402. Permanent end strength levels to support two major regional contin-
gencies. 
Sec. 403. Authorized strengths for commissioned officers on active duty in grades 
of megor, lieutenant colonel, and colonel and Navy grades of lieutenant 
commander, commander, and captain. 
Sec. 404. Extension of requirement for recommendations regarding appointments to 
joint 4-star officer positions. 
Sec. 405. Increase in authorized number of general officers on active duty in the 
Marine Corps. 
Subtitle B—^Reserve Forces 
Sec. 411. End strengths for Selected Reserve. 
Sec. 412. End strengths for reserves on active duty in support of the Reserves. 
Sec. 413. End strengths for military technicians. 
Sec. 414. Assurance of continued assignment of military personnel to serve in 
Selective Service System. 
Subtitle C—^Authorization of Appropriations 
Sec. 421. Authorization of appropriations for military personnel. 
TITLE V—MILITARY PERSONNEL POLICY 
Subtitle A—Officer Personnel Policy 
Sec. 501. Grade of Chief of Naval Research. 
Sec. 502. Chief and Assistant Chief of Army Nurse Corps and Air Force Nurse 
Corps. 
Sec. 503. Navy spot promotion authority for certain lieutenants with criticsd skills. 
Sec. 504. Time for award of degrees by unaccredited educational institutions for 
graduates to be considered educationally qualified for appointment as 
Reserve officers in grade 0-3. 
Sec. 505. Exception to baccalaureate degree requirement for appointment in the 
Naval Reserve in grades above 0-2. 
Sec. 506. Chief warrant officer promotions. 
Sec. 507. Service credit for senior ROTC cadets and midshipmen in simultaneous 
membership program. 
Sec. 508. Continuation on active status for certain Reserve officers of the Air Force. 
Sec. 509. Reports on response to recommendations concerning improvements to 
Department of Defense joint manpower process. 
Sec. 510. Frequency of reports to Congress on joint officer management policies. 
Subtitle B—Enlisted Personnel Policy 
Sec. 511. Career service reenlistments for members with at least 10 years of 
service. 
Sec. 512. Authority to extend period for entry on active duty under the delayed 
entry program. 
110 STAT. 2426 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Subtitle C—Activation and Recall 
Sec. 521. Limitations on recall of retired members to active duty. 
Sec. 522. Clarification of definition of active status. 
Sec. 523. Limitation of requirement for physical examinations of members of 
National Guard called into Federal service. 
Subtitle D—Reserve Component Retirement 
Sec. 531. Increase in annual limit on days of inactive duty training creditable 
toward Reserve retirement. 
Sec. 532. Retirement of Reserve enlisted members who qualify for active duty re-
tirement after administrative reduction in enlisted grade. 
Sec. 533. Authority for a Reserve on active duty to waive retirement sanctuary. 
Sec. 534. Eligibility of Reserves for disability retirement. 
Subtitle E—Other Reserve Component Matters 
Sec. 541. Training for Reserves on active duty in support of the Reserves. 
Sec. 542. Eligibility for enrollment in Ready Reserve mobilization income insurance 
program. 
Sec. 543. Reserve credit for participation in Health Professions Scholarship and 
Financial Assistance Program. 
Sec. 544. Amendments to Reserve Officer Personnel Management Act provisions. 
Sec. 545. Report on number of advisers in active component support of Reserves 
pilot program. 
Sec. 546. Sense of Congress and report regarding reemployment rights for mobi-
lized Reservists employed in foreign countries. 
Sec. 547. Payment of premiums under Mobilization Income Insiirance Program. 
Subtitle F—Officer Education Programs 
Sec. 551. Oversight and management of Senior Reserve Officers' Training Corps 
program. 
Sec. 552. Prohibition on reorganization of Army ROTC cadet command or termi-
nation of senior ROTC units pending report on ROTC. 
Sec. 553. Pilot program to test expansion of ROTC program to include graduate 
students. 
Sec. 554. Demonstration project for instruction and support of Army ROTC units 
by members of the Army Reserve and National Guard. 
Sec. 555. Extension of maximum age for appointment as a cadet or midshipman in 
the Senior Reserve Officers' Training Corps and the service academies. 
Sec. 556. Expansion of eligibility for education benefits to include certain Reserve 
Officers' Training Corps (ROTC) participants. 
Sec. 557. Comptroller General report on cost and policy implications of permitting 
up to five percent of service academy graduates to be assigned directly 
to Reserve duty upon graduation. 
Subtitle G—Decorations and Awards 
Sec. 561. Authority for award of Medal of Honor to certain African American 
soldiers who served diuing World War II. 
Sec. 562. Waiver of time limitations for award of certain decorations to specified 
persons. 
Sec. 563. Replacement of certain American Theater Campaign Ribbons. 
Subtitle H—Other Matters 
Sec. 571. Hate crimes in the military. 
Sec. 572. Disability coverage for members granted excess leave for educational or 
emergency purposes. 
Sec. 573. Clarification of authority of a Reserve judge advocate to act as a military 
notary public when not in a duty status. 
Sec. 574. Panel on jurisdiction of courts-martial for the National Guard when not 
in Federal service. 
Sec. 575. Authority to expand law enforcement placement program to include fire-
fighters. 
Sec. 576. Improvements to program to assist separated military and civilian per-
sonnel to obtain emplojonent as teachers or teachers' aides. 
Sec. 577. Retirement at grade to which selected for promotion when a physical dis-
ability is found at any physical examination. 
Sec. 578. Revisions to missing persons authorities. 
Subtitle I—Commissioned Corps of the Public Health Service 
Sec. 581. Applicability to Public Health Service of prohibition on crediting cadet or 
midshipmen service at the service academies. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2427 
Sec. 582. Exception to strength limitations for Public Health Service officers as-
signed to the Department of Defense. 
Sec. 583. Authority to provide legal assistance to Public Health Service officers. 
TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS 
Subtitle A—Pay and Allowances 
Sec. 601. Military pay raise for fiscal year 1997. 
Sec. 602. Adjustment of rate of cadet and midshipman pay. 
Sec. 603. Pay of senior noncommissioned officers while nospitalized. 
Sec. 604. Availability of basic allowance for quarters for certain members without 
dependents who serve on sea duty. 
Sec. 605. Uniform applicability of discretion to deny an election not to occupy 
Government quarters. 
Sec. 606. Establishment of minimum monthly amount of variable housing allow-
ance for high housing cost areas. 
Sec. 607. Family separation allowance for members separated by military orders 
from spouses who are members. 
Sec. 608. Waiver of time limitations for claim for pay and allowances. 
Subtitle B—^Bonuses and Special and Incentive Pays 
Sec. 611. One-year extension of certain bonuses and special pay authorities for 
reserve forces. 
Sec. 612. One-year extension of certain bonuses and special pay authorities for 
nurse officer candidates, registered nurses, and nvirse anesthetists. 
Sec. 613. One-year extension of authorities relating to payment of other bonuses 
and special pays. 
Sec. 614. Special pay for certain Public Health Service officers. 
Sec. 615. Special incentives to recruit and retain dental officers. 
Sec. 616. Foreign language proficiency pay for Public Health Service and National 
Oceanic and Atmospheric Administration officers. 
Subtitle C—^Travel and Transportation Allowances 
Sec. 621. Allowance in connection with shipping motor vehicle at Government 
expense. 
Sec. 622. Dislocation allowance at a rate equal to two and one-half months basic 
allowance for quarters. 
Sec. 623. Allowance for travel performed in connection with leave between consecu-
tive overseas tours. 
Sec. 624. Funding for transportation of household effects of Public Health Service 
officers. 
Subtitle D—Retired Pay, Survivor BeneHts, and Related Matters 
Sec. 631. Effective date for military retiree cost-of-living adjustment for fiscal year 
1998. 
Sec. 632. Clarification of initial computation of retiree COLAs afl;er retirement. 
Sec. 633. Suspension of payment of retired pay of members who are absent from 
the United States to avoid prosecution. 
Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute. 
Sec. 635. Increases in Survivor Benefit Plan contributions to be effective concur-
rently with pajmient of retired pay cost-of-living increases. 
Sec. 636. Amendments to the Uniformed Services Former Spouses' Protection Act. 
Sec. 637. Prevention of circumvention of court order by waiver of retired pay to 
enhance civil service retirement annuity. 
Sec. 638. Administration of benefits for so-called minimum income widows. 
Subtitle E—Other Matters 
Sec. 651. Discretionary allotment of pay, including retired or retainer pay. 
Sec. 652. Reimbursement for adoption expenses incurred in adoptions through 
W
private placements. 
aiver of recoupment of amounts withheld for tax purposes from certain 
separation pay. 
Sec. 654. Technical correction clarifying limitation on furnishing clothing or allow-
ances for enlisted National Guard technicians. 
Sec. 655. Technical correction to prior authority for payment of back pay to certain 
persons. 
Sec. 656. Compensation for persons awarded prisoner of war medal who did not 
previously receive compensation as a prisoner of war. 
Sec. 657. Payments to certain persons captured and interned by North Vietnam. 
TITLE VII—HEALTH CARE PROVISIONS 
Subtitle A—Health Care Services 
Sec. 701. Preventive hesdth care screening for colon and prostate cancer. 
110 STAT. 2428 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Sec. 702. Implementation of requirement for Selected Reserve dental insurance 
plan. 
Sec. 703. Dental insurance plan for military retirees and unremarried surviving 
spouses and certain other dependents of military retirees. 
Sec. 704. Plan for health care coverage for children with medical conditions caused 
by parental exposure to chemical munitions while serving as members 
of the Armed Forces. 
Subtitle B—TRICARE Program 
Sec. 711. CHAMPUS payment limits for TRICARE prime enroUees. 
Sec. 712. Improved information exchange between military treatment facilities and 
TRICARE program contractors. 
Sec. 713. Plans for medicare subvention demonstration programs. 
Subtitle C—^Uniformed Services Treatment Facilities 
Sec. 721. Definitions. 
Sec. 722. Inclusion of designated providers in uniformed services health care 
delivery system. 
Sec. 723. Provision oi uniform benefit by designated providers. 
Sec. 724. Enrollment of covered beneficiaries. 
Sec. 725. Application of CHAMPUS payment rules. 
Sec. 726. Payments for services. 
Sec. 727. Repeal of superseded authorities. 
Subtitle D—Other Changes to Existing Laws Regarding Health Care 
Management 
Sec. 731. Authority 
to 
waive 
CHAMPUS 
exclusion 
regarding 
nonmedically 
necessary treatment in connection with certain clinical trials. 
Sec. 732. Exception to maximum allowable payments to individual health-care 
providers under CHAMPUS. 
Sec. 733. Codification of annual authority to credit CHAMPUS refunds to current 
year appropriation. 
Sec. 734. Exceptions to requirements regarding obtaining nonavailability-of-health-
care statements. 
Sec. 735. Enhancement of third-party collection and secondary payer authorities 
under CHAMPUS. 
Subtitle E—Other Matters 
Sec. 741. Alternatives to active duty service obligation under Armed Forces Health 
Professions Scholarship and Financial Assistance program and Uni-
formed Services University of the Health Sciences. 
Sec. 742. External peer review for defense health program extramural medical 
research involving human subjects. 
Sec. 743. Independent research regarding Gulf War syndrome. 
Sec. 744. Comptroller General review of health care activities of Department of 
Defense relating to Gulf War illnesses. 
Sec. 745. Report regarding specialized treatment facility program. 
Sec. 746. Study of means of ensuring uniformity in provision of medical and dental 
care for members of Reserve components. 
Sec. 747. Sense of Congress regarding tax treatment of Armed Forces Health 
Professions Scholarship and Financial Assistance program. 
TITLE Vin—ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND 
RELATED MATTERS 
Subtitle A—^Acquisition Management 
Sec. 801. Procurement technical assistance programs. 
Sec. 802. Extension of pilot mentor-protege program. 
Sec. 803. Authority to waive certain requirements for defense acquisition pilot pro-
grams. 
Sec. 804. Modification of authority to carry out certain prototype projects. 
Sec. 805. Increase in threshold amounts for major systems. 
Sec. 806. Revisions in information required to be included in selected acquisition 
reports. 
Sec. 807. Increase in simplified acquisition threshold for humanitarian or peace-
keeping operations. 
Sec. 808. Expansion of audit reciprocity among Federal agencies to include post-
award audits. 
Sec. 809. Excessive compensation of certain contractor personnel. 
Sec. 810. Exception to prohibition on procurement of foreign goods. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2429 
Subtitle B—Other Matters 
Sec. 821. Prohibition on release of contractor proposals under Freedom of Informa-
tion Act. 
Sec. 822. Amendments relating to reports on procurement regulatory activity. 
Sec. 823. Amendment of multiyear limitation on contracts for inspection, mainte-
nance, and repair. 
Sec. 824. Streamlined notice requirements to contractors and employees regarding 
termination or substantial reduction in contracts under major defense 
programs. 
Sec. 825. Repeal of notice requirements for substantially or seriously affected par-
ties in downsizing efforts. 
Sec. 826. Study of effectiveness of defense mergers. 
Sec. 827. Annual report relating to Buy American Act. 
Sec. 828. Foreign environmental technology. 
Sec. 829. Assessment of national defense technology and industrial base and 
dependency of base on supplies available only from foreign countries. 
Sec. 830. Expansion of report on implementation of automated information systems 
to include additional matters regarding information resources manage-
ment. 
Sec. 831. Year 2000 software conversion. 
Sec. 832. Procurement from firms in industrial base for production of small arms. 
Sec. 833. Cable television franchise agreements. 
TITLE 
IX—DEPARTMENT 
OF 
DEFENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—General Matters 
Sec. 901. Repeal of previously enacted reduction in number of statutory positions 
in Office of the Secretary of Defense. 
Sec. 902. Additional required reduction in defense acquisition workforce. 
Sec. 903. Reduction of personnel assigned to Office of the Secretary of Defense. 
Sec. 904. Report on military department headquarters staffs. 
Sec. 905. Matters to be considered in next assessment of current missions, respon-
sibilities, and force structure of the unified combatant commands. 
Sec. 906. Transfer of authority to control transportation systems in time of war. 
Sec. 907. Codification of requirements relating to continued operation of the 
Uniformed Services University of the Health Sciences. 
Sec. 908. Joint Reauirements Oversight Council. 
Sec. 909. Membersnh) of the Ammunition Storage Board. 
Sec. 910. Removal of Secretary of the Army from membership on the Foreign Trade 
Zone Board. 
Sec. 911. Composition of aircraft accident investigation boards. 
Sec. 912. Mission of the White House Communications Agency. 
Subtitle B—^Force Structure Review 
Sec. 921. Short title. 
Sec. 922. Findings. 
Sec. 923. Quadrennial Defense Review. 
Sec. 924. National Defense Panel. 
Sec. 925. Postponement of deadUnes. 
Sec. 926. Definitions. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
Sec. 1001. Transfer authority. 
Sec. 1002. Incorporation of classified annex. 
Sec. 1003. Authority for obligation of certain unauthorized fiscal year 1996 defense 
appropriations. 
Sec. 1004. Authorization of prior emergency supplemental appropriations for fiscal 
year 1996. 
Sec. 1005. Format for budget requests for Navy/Marine Corps and Air Force ammu-
nition accounts. 
Sec. 1006. Format for annual budget requests for Defense Airborne Reconnaissance 
Program. 
Sec. 1007. Limitation on use of Department of Defense fiinds transferred to the 
Coast Guard. 
Sec. 1008. Fisher House Trust Fund for the Department of the Navy. 
Sec. 1009. Designation and liability of disbursing and certifying officials for the 
Coast Guard. 
Sec. 1010. Authority to suspend or terminate collection actions against deceased 
members of the Coast Guard. 
110 STAT. 2430 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Sec. 1011. Department of Defense disbursing official check cashing and exchange 
transactions. 
Subtitle B—Naval Vessels and Shipyards 
Sec. 1021. Repeal of requirement for continuous applicability of contracts for 
phased maintenance of AE class ships. 
Sec. 1022. Funding for second and third maritime prepositioning ships out of 
National Defense Sealifl Fund. 
Sec. 1023. Transfer of certain obsolete tugboats of the Navy. 
Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California. 
Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102). 
Subtitle C—Counter-Drug Activities 
Sec. 1031. Authority to provide additional support for counter-drug activities of 
Mexico. 
Sec. 1032. Availability of funds for certain drug interdiction and counter-drug 
activities. 
Sec. 1033. Transfer of excess personal property to support law 
enforcement 
activities. 
Sec. 1034. Sale by Federal departments or agencies of chemicals used to manufac-
ture controlled substances. 
Subtitle D—^Reports and Studies 
Sec. 1041. Annual report on Operation Provide Comfort and Operation Enhanced 
Southern Watch. 
Sec. 1042. Annual report on emerging operational concepts. 
Sec. 1043. Report on Department of Defense military child care programs. 
Sec. 1044. Report on Department of Defense military youth programs. 
Sec. 1045. Quarterly reports regarding coproduction agreements. 
Sec. 1046. Report on witness interview procedures for DepEirtment of Defense 
criminal investigations. 
Sec. 1047. Report on military readiness requirements of the Armed Forces. 
Sec. 1048. Report on NATO enlargement. 
Subtitle E—Management of Armed Forces Retirement Home 
Sec. 1051. Retirement Home Boards of Directors. 
Sec. 1052. Acceptance of uncompensated services. 
Sec. 1053. Disposal of tract of real property in the District of Columbia. 
Subtitle F—Other Matters 
Sec. 1061. Policy on protection of national information infrastructure 
against 
strategic attack. 
Sec. 1062. Information systems security program. 
Sec. 1063. Authority to accept services from foreign governments and international 
organizations for defense purposes. 
Sec. 1064. Prohibition on collection and release of detailed satellite imagery 
relating to Israel. 
Sec. 1065. George C. Marshall European Center for Strategic Security Studies. 
Sec. 1066. Authority to award to civilian participants in the defense of Pearl Har-
bor the Congressional Medal previously authorized only for military 
participants in the defense of Pearl Harbor. 
Sec. 1067. Assimilative crimes authority for traffic ofTenses on military installa-
tions. 
Sec. 1068. Uniform Code of Military Justice amendments. 
Sec. 1069. Punishment of interstate stalking. 
Sec. 1070. Participation of members, dependents, and other persons in crime pre-
vention efforts at installations. 
Sec. 1071. Display of State flags at installations and facilities of the Department 
of Defense. 
Sec. 1072. Treatment of excess operational support airlift aircraft. 
Sec. 1073. Correction to statutory references to certain Department of Defense 
organizations. 
Sec. 1074. Technical and clerical amendments. 
Sec. 1075. Modification to third-party liability to United States for tortious inflic-
tion of injury or disease on members of the uniformed services. 
Sec. 1076. Chemical Stockpile Emergency Preparedness Program. 
Sec. 1077. Exemption from requirements applicable to savings associations for cer-
tain savings institutions serving military personnel. 
Sec. 1078. Improvements to National Security Education Program. 
Sec. 1079. Aviation and vessel war risk insurance. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2431 
Sec. 1080. Designation of memorial as National D-Day Memorial. 
Sec. 1081. Sense of Congress regarding semiconductor trade agreement between 
United States and Japan. 
Sec. 1082. Agreements for exchange of defense personnel between the United 
States and foreign countries. 
Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina. 
Sec. 1084. Defense burdensharing. 
TITLE XI—NATIONAL IMAGERY AND MAPPING AGENCY 
Sec. 1101. Short title. 
Sec. 1102. Findings. 
Sec. 1103. Role of Director of Central Intelligence in appointment and evaluation 
of certain intelligence officials. 
Subtitle A—^Establishment of Agency 
Sec. 1111. Establishment. 
Sec. 1112. Missions and authority. 
Sec. 1113. Transfers of personnel and assets. 
Sec. 1114. Compatibility with authority under the National Security Act of 1947. 
Sec. 1115. Creditable civilian service for career conditional employees of the 
Defense Mapping Agency. 
Sec. 1116. Saving provisions. 
Sec. 1117. Definitions. 
Sec. 1118. Authorization of appropriations. 
Subtitle B—Conforming Amendments and Effective Dates 
Sec. 1121. Redesignation and repeals. 
Sec. 1122. Reference amendments. 
Sec. 1123. Headings and clerical amendments. 
Sec. 1124. Effective date. 
TITLE XII—RESERVE FORCES REVITALIZATION 
Sec. 1201. Short title. 
Sec. 1202. Purpose. 
Subtitle A—^Reserve Component Structure 
Sec. 1211. Reserve component commands. 
Sec. 1212. Reserve component chiefs. 
Sec. 1213. Review of active duty and Reserve general and flag officer authoriza-
tions. 
Sec. 1214. Guard and Reserve technicians. 
Subtitle B—^Reserve Component Accessibility 
Sec. 1231. Report to Congress on measures to improve National Guard and Reserve 
ability to respond to emergencies. 
Sec. 1232. Report to Congress concerning tax incentives for employers of members 
of Reserve components. 
Sec. 1233. Report to Congress concerning income insurance program for activated 
Reservists. 
Sec. 1234. Report to Congress concerning small business loans for members 
released from Reserve service during contingency operations. 
Subtitle C—Reserve Forces Sustainment 
Sec. 1251. Report concerning tax deductibility of nonreimbursable expenses. 
Sec. 1252. Authority to pay transient housing charges for members performing 
active duty for training. 
Sec. 1253. Sense of Congress concerning quarters allowance during service on 
active duty for training. 
Sec. 1254. Sense of Congress concerning military leave policy. 
Sec. 1255. Reserve Forces Policy Board. 
Sec. 1256. Report on parity of benefits for active duty service and Reserve service. 
Sec. 1257. Information on proposed fiinding for the Guard and Reserve components 
in fiiture-years defense programs. 
TITLE Xni—ARMS CONTROL AND RELATED MATTERS 
Subtitle A—^Arms Control, Counterproliferation Activities, and Related 
Matters 
Sec. 1301. Extension of counterproliferation authorities. 
Sec. 1302. Limitation on retirement or dismantlement of strategic nuclear deUvery 
systems. 
110 STAT. 2432 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Sec. 1303. Strengthening certain sanctions against nuclear proliferation activities. 
Sec. 1304. Authority to pay certain expenses relating to humanitarian and civic 
assistance for clearance of landmines. 
Sec. 1305. Report on military capabilities of People's Republic of China. 
Sec. 1306. Presidential report regarding weapons prohferation and policies of the 
People's Republic of China. 
Sec. 1307. United States-People's Republic of China Joint Defense Conversion Com-
mission. 
Sec. 1308. Sense of Congress concerning export controls. 
Sec. 1309. Counterproliferation Program Review Committee. 
Sec. 1310. Sense of Congress concerning assisting other countries to improve 
security of fissile material. 
Sec. 1311. Review by Director of Central Intelligence of National Intelligence Esti-
mate 95-19. 
Subtitle B—Commission to Assess the Ballistic Missile Threat to the United 
States 
Sec. 1321. Establishment of Commission. 
Sec. 1322. Duties of Commission. 
Sec. 1323. Report. 
Sec. 1324. Powers. 
Sec. 1325. Commission procediu^s. 
Sec. 1326. Personnel matters. 
Sec. 1327. Miscellaneous administrative provisions. 
Sec. 1328. Funding. 
Sec. 1329. Termination of the Commission. 
TITLE XIV—DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION 
Sec. 1401. Short title. 
Sec. 1402. Findings. 
Sec. 1403. Definitions. 
Subtitle A—Domestic Preparedness 
Sec. 1411. Response to threats of terrorist use of weapons of mass destruction. 
Sec. 1412. Emergency response assistance program. 
Sec. 1413. Nuclear, chemical, and biological emergency response. 
Sec. 1414. Chemical-biological emergency response team. 
Sec. 1415. Testing of preparedness for emergencies involving nuclear, radiological, 
chemical, and biological weapons. 
Sec. 1416. Military assistance to civilian law enforcement officials in emergency 
situations involving biological or chemical weapons. 
Sec. 1417. Rapid response information system. 
Subtitle B—Interdiction of Weapons of Mass Destruction and Related 
Materials 
Sec. 1421. Procurement of detection equipment United States border security. 
Sec. 1422. Extension of coverage of International Emergency Economic Powers Act. 
Sec. 1423. Sense of Congress concerning criminal penalties. 
Sec. 1424. International border security. 
Subtitle C—Control and Disposition of Weapons of Mass Destruction and 
Related Materials Threatening the United States 
Sec. 1431. Coverage of weapons-usable fissile materials in Cooperative Threat 
Reduction programs on elimination or transportation of nuclear 
weapons. 
Sec. 1432. Elimination of plutonium production. 
Subtitle D—Coordination of Policy and Countermeasures Against 
Proliferation of Weapons of Mass Destruction 
Sec. 1441. National Coordinator on Nonproliferation. 
Sec. 1442. National Security Council Committee on Nonproliferation. 
Sec. 1443. Comprehensive preparedness program. 
Sec. 1444. Termination. 
Subtitle E—Miscellaneous 
Sec. 1451. Sense of Congress concerning contracting policy. 
Sec. 1452. Transfers of allocations among Cooperative Threat Reduction programs. 
Sec. 1453. Sense of Congress concerning assistance to states of former Soviet 
Union. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2433 
Sec. 1454. Purchase of low-enriched uranium derived from Russian highly enriched 
uraniimi. 
Sec. 1455. Sense of Congress concerning purchase, packaging, and transportation of 
fissile materials at risk of theft. 
TITLE XV—COOPERATIVE THREAT REDUCTION WITH STATES OF 
FORMER SOVIET UNION 
Sec. 1501. Specification of Cooperative Threat Reduction programs. 
Sec. 1502. Fiscal year 1997 funding allocations. 
Sec. 1503. Prohibition on use of funds for specified pvirposes. 
Sec. 1504. Limitation on use of funds until specified reports are submitted. 
Sec. 1505. Availability of funds. 
TITLE XVI—DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL 
Subtitle A—^Miscellaneous Matters Relating to Personnel Management, Pay, 
and Allowances 
Sec. 1601. Modification of requirement for conversion of military positions to 
civilian positions. 
Sec. 1602. Retention of civilian employee positions at military training bases trans-
ferred to National Guard. 
Sec. 1603. Clarification of applicability of certain management constraints on major 
range and test facility base structure. 
Sec. 1604. Travel expenses and health care for civiUan employees of the Depart-
ment of Defense abroad. 
Sec. 1605. Travel, transportation, and relocation allowances for certain former 
nonappropriated fund employees. 
Sec. 1606. Employment and salary practices applicable to Department of Defense 
overseas teachers. 
Sec. 1607. Employment and compensation of civilian faculty members at certain 
Department of Defense schools. 
Sec. 1608. Reimbursement of Department of Defense domestic dependent school 
board members for certain expenses. 
Sec. 1609. Modification of authority for civilian employees of Department of 
Defense to participate voluntarily in reductions in force. 
Sec. 1610. Wage-board compensatory time off. 
Sec. 1611. Liquidation of restored annual leave that remains unused upon transfer 
of employee from installation being closed or realigned. 
Sec. 1612. Waiver of requirement for repayment of Voluntary Separation Incentive 
pay by former Department of Defense employees reemployed by the 
Government without pay. 
Sec. 1613. Simplification of rules relating to the observance of certain holidays. 
Sec. 1614. Revision of certain travel management authorities. 
Sec. 1615. Failure to comply with veterans' preference requirements to be treated 
as a prohibited personnel practice. 
Sec. 1616. Pilot programs for defense employees converted to contractor employees 
due to privatization at closed military installations. 
Subtitle B—Department of Defense Intelligence Personnel Policy 
Sec. 1631. Short title. 
Sec. 1632. Management of civilian intelligence personnel. 
Sec. 1633. Repeal of superseded sections and clerical and conforming amendments. 
Sec. 1634. Other personnel management authorities. 
Sec. 1635. Effective date. 
TITLE XVII—FEDERAL EMPLOYEE TRAVEL REFORM 
Sec. 1701. Short title. 
Subtitle A—^Relocation Beneflts 
Sec. 1711. Allowance for seeking permanent residence quarters. 
Sec. 1712. Temporary quarters subsistence expenses allowance. 
Sec. 1713. Modification of residence transaction expenses allowance. 
Sec. 1714. Authority to pay for property management services. 
Sec. 1715. Authority to transport a privately owned motor vehicle within the 
continental United States. 
Sec. 1716. Authority to pay limited relocation allowances to an employee who is 
performing an extended assignment. 
Sec. 1717. Authority to pay a home marketing incentive. 
Sec. 1718. Revision and reenactment of additional provisions relating to relocation 
expenses. 
110 STAT. 2434 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Subtitle B—Miscellaneous Provisions 
Sec. 1721. Repeal of the long-distance telephone call certification requirement. 
Sec. 1722. Transfer of authority to prescribe regulations. 
Sec. 1723. Conforming and clerical amendments. 
Sec. 1724. Assessment of cost savings. 
Sec. 1725. Effective date and issuance of regulations. 
TITLE XVm—FEDERAL CHARTER FOR THE FLEET RESERVE 
ASSOCLVTION 
Sec. 1801. Recognition and grant of Federal charter. 
Sec. 1802. Powers. 
Sec. 1803. Purposes. 
Sec. 1804. Service of process. 
Sec. 1805. Membership. 
Sec. 1806. Board of directors. 
Sec. 1807. Officers. 
Sec. 1808. Restrictions. 
Sec. 1809. Liability. 
Sec. 1810. Maintenance and inspection of books and records. 
Sec. 1811. Audit of financial transactions. 
Sec. 1812. Annual report. 
Sec. 1813. Reservation of right to alter, amend, or repeal charter. 
Sec. 1814. Tax-exempt status required as condition of charter. 
Sec. 1815. Termination. 
Sec. 1816. Definition of State. 
DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS 
Sec. 2001. Short title. 
TITLE XXI—ARMY 
Sec. 2101. Authorized Army construction and land acquisition projects. 
Sec. 2102. Family housing. 
Sec. 2103. Improvements to military family housing units. 
Sec. 2104. Authorization of appropriations, Army. 
Sec. 2105. Land acquisition, National Ground Intelligence Center, Charlottesville, 
Virginia. 
TITLE XXII—NAVY 
Sec. 2201. Authorized Navy construction and land acquisition projects. 
Sec. 2202. Family housing. 
Sec. 2203. Improvements to military family housing units. 
Sec. 2204. Authorization of appropriations, Navy. 
Sec. 2205. Beach replenishment. Naval Air Station, North Island, California. 
TITLE XXin—AIR FORCE 
Sec. 2301. Authorized Air Force construction and land acquisition projects. 
Sec. 2302. Family housing. 
Sec. 2303. Improvements to military family housing units. 
Sec. 2304. Authorization of appropriations. Air Force. 
Sec. 2305. Elimination of authority to carry out fiscal year 
1995 project, 
Spangdahlem Air Force Base, Germany. 
TITLE XXIV—DEFENSE AGENCIES 
Sec. 2401. Authorized Defense Agencies construction and land acquisition projects. 
Sec. 2402. Military housing planning and design. 
Sec. 2403. Improvements to military family housing units. 
Sec. 2404. Military housing improvement program. 
Sec. 2405. Energy conservation projects. 
Sec. 2406. Authorization of appropriations, Defense Agencies. 
Sec. 2407. Reduction in amounts authorized to be appropriated for fisced year 1996 
Defense Agencies military construction, land acquisition, and military 
family housing functions. 
TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION SECURITY 
INVESTMENT PROGRAM 
Sec. 2501. Authorized NATO construction and land acquisition projects. 
Sec. 2502. Authorization of appropriations, NATO. 
TITLE XXVI—GUARD AND RESERVE FORCES FACILITIES 
Sec. 2601. Authorized Guard and Reserve construction and land acquisition 
projects. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2435 
Sec. 2602. Authorization and funding for construction and improvement of Naval 
Reserve Centers. 
Sec. 2603. Upgrade Air National Guard facilities, Bangor International Airport, 
Maine. 
TITLE XXVII—EXPIRATION A^fD EXTENSION OF AUTHORIZATIONS 
Sec. 2701. Expiration of authorizations and amounts required to be specified by 
law. 
Sec. 2702. Extension of authorizations of certain fiscal year 1994 projects. 
Sec. 2703. Extension of authorizations of certain fiscal year 1993 projects. 
Sec. 2704. Extension of authorizations of certain fiscal year 1992 projects. 
Sec. 2705. Effective date. 
TITLE XXVIII—GENERAL PROVISIONS 
Subtitle A—Military Construction Program and Military Family Housing 
Changes 
Sec. 2801. Increase in certain thresholds for unspecified minor construction 
projects. 
Sec. 2802. Redesignation of North Atlantic Treaty Organization Infrastructure 
program. 
Sec. 2803. Improvements to family housing units. 
Sec. 2804. Availability of funds for planning, execution, and administration of con-
tracts for family housing and unaccompanied housing. 
Subtitle B—Defense Base Closure and Realignment 
Sec. 2811. Restoration of authority for certain intragovemment transfers under 
1988 base closure law. 
Sec. 2812. Contracting for certain services at facilities remaining on closed 
installations. 
Sec. 2813. Authority to compensate owners of manufactured housing. 
Sec. 2814. Additional purpose for which adjustment and diversification assistance 
is authorized. 
Sec. 2815. Payment of stipulated penalties assessed under CERCLA in connection 
with Loring Air Force Base, Maine. 
Sec. 2816. Plan for utilization, reutilization, or disposal of Mississippi Army Ammu-
nition Plant. 
Subtitle C—Land Conveyances 
PAKT I—^ARMY CONVEYANCES 
Sec. 2821. Transfer of lands, Arlington National Cemetery, Arlington, Virginia. 
Sec. 2822. Land transfer. Fort Sill, Oklahoma. 
Sec. 2823. Land conveyance, Army Reserve Center, Rushville, Indiana. 
Sec. 2824. Land conveyance. Army Reserve Center, Anderson, South Carolina. 
Sec. 2825. Land conveyance. Army Reserve Center, Montpelier, Vermont. 
Sec. 2826. Land conveyance. Crafts Brothers Reserve Training Center, Manchester, 
New Hampshire. 
Sec. 2827. Land conveyance, Pine Bluff Arsenal, Arkansas. 
Sec. 2828. Reaffirmation of land conveyances. Fort Sheridan, Illinois. 
PART II—NAVY CONVEYANCES 
Sec. 2831. Land transfer, Potomac Annex, District of Columbia. 
Sec. 2832. Land exchange, St. Helena Annex, Norfolk Naval Shipyard, Virginia. 
Sec. 2833. Land conveyance, Calverton Pine Barrens, Naval Weapons Industrial 
Reserve Plant, Calverton, New York. 
Sec. 2834. Land conveyance, former naval reserve facility, Lewes, Delaware. 
Sec. 2835. Modification of land conveyance authority. Naval Reserve Center, 
Seattle, Washington. 
Sec. 2836. Release of condition on reconveyance of transferred land, Guam. 
Sec. 2837. Lease to facilitate construction of Reserve center. Naval Air Station, 
Meridian, Mississippi. 
PART III—AIR FORCE CONVEYANCES 
Sec. 2841. Land conveyance. Radar Bomb Scoring Site, Belle Fourche, South 
Dakota. 
Sec. 2842. Conveyance of primate research complex and Air Force-owned chim-
panzees, HoUoman Air Force Base, New Mexico. 
PART IV—OTHER CONVEYANCES 
Sec. 2851. Land conveyance, Tatum Salt Dome Test Site, Mississippi. 
29-194 O - 96 - 23 : QL 3 Part 3 
110 STAT. 2436 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Sec. 2852. Land conveyance, William Langer Jewel Bearing Plant, RoUa, North 
Dakota. 
Sec. 2853. Land conveyance, Air Force Plant No. 85, Columbus, Ohio. 
Sec. 2854. Modification of boundaries of White Sands National Monument and 
White Sands Missile Range. 
Subtitle D—Other Matters 
Sec. 2861. Authority to grant easements for rights-of-way. 
Sec. 2862. Authority to enter into cooperative agreements for the management of 
cultural resources on military installations. 
Sec. 2863. Demonstration project for installation and operation of electric power 
distribution system at Youngstown Air Reserve Station, Ohio. 
Sec. 2864. Renovation of the Pentagon reservation. 
Sec. 2865. Plan for repairs and stabilization of the historic district at the Forest 
Glen Annex of Walter Reed Medical Center, Maryland. 
Sec. 2866. Naming of range at Camp Shelby, Mississippi. 
Sec. 2867. Designation of Michael O'Callaghan military hospital. 
Sec. 2868. Naming of building at the Uniformed Services University of the Headth 
Sciences. 
TITLE XXK—MILITARY LAND WITHDRAWALS 
Subtitle A—Fort Carson-Pinon Canyon Military Lands Withdrawal 
Sec. 2901. Short title. 
Sec. 2902. Withdrawal and reservation of lands at Fort Carson Military Reser-
vation. 
Sec. 2903. Withdrawal and reservation of lands at Pinon Canyon Maneuver Site. 
Sec. 2904. Maps and legal descriptions. 
Sec. 2905. Management of withdrawn lands. 
Sec. 2906. Management of withdrawn and acquired mineral resources. 
Sec. 2907. Hunting, fishing, and trapping. 
Sec. 2908. Termination of withdrawal and reservation. 
Sec. 2909. Determination of presence of contamination and effect of contamination. 
Sec. 2910. Delegation. 
Sec. 2911. Hold harmless. 
Sec. 2912. Amendment to Military Lands Withdrawal Act of 1986. 
Sec. 2913. Authorization of appropriations. 
Subtitle B—El Centro Naval Air Facility Ranges Withdrawal 
Sec. 2921. Short title and definitions. 
Sec. 2922. Withdrawal and reservation of lands for El Centro. 
Sec. 2923. Maps and legal descriptions. 
Sec. 2924. Management of withdrawn lands. 
Sec. 2925. Duration of withdrawal and reservation. 
Sec. 2926. Continuation of ongoing decontamination activities. 
Sec. 2927. Requirements for extension. 
Sec. 2928. Early relinquishment of withdrawal. 
Sec. 2929. Delegation of authority. 
Sec. 2930. Hunting, fishing, and trapping. 
Sec. 2931. Hold harmless. 
DIVISION C—DEPARTMENT OF ENERGY NATIONAL SECURITY 
AUTHORIZATIONS AND OTHER AUTHORIZATIONS 
TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL SECURITY 
PROGRAMS 
Subtitle A—National Security Programs Authorizations 
Sec. 3101. Weapons activities. 
Sec. 3102. Environmental restoration and waste management. 
Sec. 3103. Defense fixed asset acquisition/privatization. 
Sec. 3104. Other defense activities. 
Sec. 3105. Defense nuclear waste disposal. 
Subtitle B—Recurring General Provisions 
Sec. 3121. Reprogramming. 
Sec. 3122. Limits on general plant projects. 
Sec. 3123. Limits on construction projects. 
Sec. 3124. Fund transfer authority. 
Sec. 3125. Authority for conceptual and construction design. 
Sec. 3126. Authority for emergency planning, design, and construction activities. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2437 
Sec. 3127. Funds available for all national security programs of the Department of 
Energy. 
Sec. 3128. Availability of funds. 
Subtitle C—Program Authorizations, Restrictions, and Limitations 
Sec. 3131. Stockpile stewardship program. 
Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile. 
Sec. 3133. Tritium production. 
Sec. 3134. Modernization and consolidation of tritium recycling facilities. 
Sec. 3135. Production of high explosives. 
Sec. 3136. Limitation on use of funds for certain research and development 
purposes. 
Sec. 3137. Prohibition on funding nuclear weapons activities with People's Republic 
of China. 
Sec. 3138. International cooperative stockpile stewardship programs. 
Sec. 3139. Temporary authority relating to transfers of defense environmental 
management funds. 
Sec. 3140. Management structure for nuclear weapons production facilities and 
nuclear weapons laboratories. 
Sec. 3141. Accelerated schedule for isolating high-level nuclear waste at the 
defense waste processing facility, Savannah River Site. 
Sec. 3142. Processing and treatment of high-level nuclear waste and spent nuclear 
fuel rods. 
Sec. 3143. Projects to accelerate closure activities at defense nuclear facilities. 
Sec. 3144. Payment of costs of operation and maintenance of infrastructure at 
Nevada Test Site. 
Subtitle D—Other Matters 
Sec. 3151. Report on plutonium pit production and remanufacturing plans. 
Sec. 3152. Amendments relating to baseline environmental management reports. 
Sec. 3153. Requirement to develop future use plans for environmental management 
program. 
Sec. 3154. Report on Department of Energy liability at Department superfund 
sites. 
Sec. 3155. Requirement for annual five-year budget for the national security pro-
grams of the Department of Energy. 
Sec. 3156. Requirements for Department of Energy weapons activities budgets for 
fiscal years after fiscal year 1997. 
Sec. 3157. Repeal of requirement relating to accounting procedures for Department 
of Energy funds. 
Sec. 3158. Update ofreport on nuclear test readiness postures. 
Sec. 3159. Reports on critical difficulties at nuclear weapons laboratories and 
nuclear weapons production plants. 
Sec. 3160. Extension of applicability of notice-and-wait requirement regarding pro-
posed cooperation agreements. 
Sec. 3161. Sense of Senate relating to redesignation of defense environmental 
restoration and waste management program. 
Sec. 3162. Commission on maintaining United States nuclear weapons expertise. 
Sec. 3163. Sense of Congress regarding reliability and safety of remaining nuclear 
forces. 
Sec. 3164. Study on worker protection at the Mound facility. 
Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement Project, 
Livermore, California. 
Sec. 3166. Fellowship program for development of skills critical to Department of 
Energy nuclear weapons complex. 
Subtitle E—Defense Nuclear Environmental Cleanup and Management 
Sec. 3171. Purpose. 
Sec. 3172. Applicability. 
Sec. 3173. Site manager. 
Sec. 3174. Department of Energy orders. 
Sec. 3175. Deployment of technology for remediation of defense nuclear waste. 
Sec. 3176. Performance-based contracting. 
Sec. 3177. Designation of covered facilities as environmental cleanup demonstra-
tion areas. 
Sec. 3178. Definitions. 
Sec. 3179. Termination. 
Sec. 3180. Report. 
Subtitle F—Waste Isolation Pilot Plant Land Withdrawal Act Amendments 
Sec. 3181. Short title. 
110 STAT. 2438 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Sec. 3182. Definitions. 
Sec. 3183. Management plan. 
Sec. 3184. Repeal of test phase and retrieval plans. 
Sec. 3185. Test phase activities. 
Sec. 3186. Disposal operations. 
Sec. 3187. Environmental Protection Agency disposal regulations. 
Sec. 3188. Compliance with environmental laws and regulations. 
Sec. 3189. Sense of Congress on commencement of emplacement of transuranic 
waste. 
Sec. 3190. Decommissioning of WIPP. 
Sec. 3191. Authorizations for economic assistance and miscellaneous payments. 
TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY BOARD 
Sec. 3201. Authorization. 
TITLE XXXIII—NATIONAL DEFENSE STOCKPILE 
Subtitle A—^Authorization of Disposals and Use of Funds 
Sec. 3301. Definitions. 
Sec. 3302. Authorized uses of stockpile funds. 
Sec. 3303. Disposal of certain materials in National Defense Stockpile. 
Subtitle B—Programmatic Change 
Sec. 3311. Biennial report on stockpile requirements. 
Sec. 3312. Notification requirements. 
Sec. 3313. Importation of strategic and critical materials. 
TITLE XXXIV—NAVAL PETROLEUM RESERVES 
Sec. 3401. Authorization of appropriations. 
Sec. 3402. Price requirement on sale of certain petroleum during fiscal year 1997. 
TITLE XXXV—PANAMA CANAL COMMISSION 
Subtitle A—^Authorization of Appropriations 
Sec. 3501. Short title. 
Sec. 3502. Authorization of expenditures. 
Sec. 3503. Purchase of vehicles. 
Sec. 3504. Expenditures only in accordance with treaties. 
Subtitle B—^Amendments to Panama Canal Act of 1979 
Sec. 3521. Short title; references. 
Sec. 3522. Definitions and recommendation for legislation. 
Sec. 3523. Administrator. 
Sec. 3524. Deputy Administrator and Chief Engineer. 
Sec. 3525. Office of Ombudsman. 
Sec. 3526. Appointment and compensation; duties. 
Sec. 3527. Applicability of certain benefits. 
Sec. 3528. Travel and transportation. 
Sec. 3529. Clarification of definition of agency. 
Sec. 3530. Panama Canal Employment System; merit and other employment 
requirements. 
Sec. 3531. Employment standards. 
Sec. 3532. Repeal of obsolete provision regarding interim application of Canal Zone 
Merit System. 
Sec. 3533. Repeal of provision relating to recruitment and retention remuneration. 
Sec. 3534. Benefits based on basic pay. 
Sec. 3535. Vesting of general administrative authority of Commission. 
Sec. 3536. Applicability of certain laws. 
Sec. 3537. Repeal of provision relating to transferred or reemployed employees. 
Sec. 3538. Administration of special disability benefits. 
Sec. 3539. Panama Canal Revolving Fund. 
Sec. 3540. Printing. 
Sec. 3541. Accounting policies. 
Sec. 3542. Interagency services; reimbursements. 
Sec. 3543. Postal service. 
Sec. 3544. Investigation of accidents or injury giving rise to claim. 
Sec. 3545. Operations regulations. 
Sec. 3546. Miscellaneous repeals. 
Sec. 3547. Exemption from Metric Conversion Act of 1975. 
Sec. 3548. Conforming and clerical amendments. 
Sec. 3549. Repeal of Panama Canal Code. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2439 
SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED. 
For purposes of this Act, the term "congressional defense 
committees" means— 
(1) the Committee on Armed Services and the Committee 
on Appropriations of the Senate; and 
(2) the Committee on National Security and the Committee 
on Appropriations of the House of Representatives. 
DIVISION A—DEPARTMENT OF 
DEFENSE AUTHORIZATIONS 
TITLE I—PROCUREMENT 
TITLE I—PROCUREMENT 
Subtitle A—^Authorization of Appropriations 
Sec. 101. Army. 
Sec. 102. Navy and Marine Corps. 
Sec. 103. Air Force. 
Sec. 104. Defense-wide activities. 
Sec. 105. Reserve components. 
Sec. 106. Defense Inspector General. 
Sec. 107. Chemical Demilitarization Program. 
Sec. 108. Defense health programs. 
Subtitle B—Army Programs 
Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior helicopters. 
Sec. 112. Mmtiyear procurement authority for Army programs. 
Sec. 113. Bradley TOW 2 Test Program sets. 
Subtitle C—Navy Programs 
Sec. 121. Nuclear attack submarine programs. 
Sec. 122. Arleigh Burke class destroyer program. 
Sec. 123. EA-6B aircraft reactive jammer program. 
Sec. 124. T-39N trainer aircraft for the Navy. 
Sec. 125. Penguin missile program. 
Subtitle D—Air Force Programs 
Sec. 131. Repeal of Umitation on procurement of F-15E aircraft. 
Sec. 132. Modification to multiyear procurement authority for C-17 
aircraft 
program. 
Subtitle E—Other Matters 
Sec. 141. Assessments of modernization priorities of the reserve components. 
Sec. 142. Destruction of existing stockpile of le^al chemical agents and munitions. 
Sec. 143. Extension of authority to carry out Armament Retooling and Manufactiu*-
ing Support Initiative. 
Subtitle A—^Authorization of 
Appropriations 
SEC. 101. ARMY. 
Funds are hereby authorized to be appropriated for fiscal year 
1997 for procurement for the Army as follows: 
(1) For aircraft, $ 1,314,015,000. 
(2) For missiles, $1,031,829,000. 
(3) 
For 
weapons 
and 
tracked 
combat 
vehicles, 
$1,409,514,000. 
(4) For ammunition, $1,003,028,000. 
(5) For other procurement, $2,990,240,000. 
110 STAT. 2440 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 
1
0
2
. 
NAVY 
AND 
MARINE 
CORPS. 
(a) NAVY.—Funds are hereby authorized to be appropriated 
for fiscal year 1997 for procurement for the Navy as follows: 
(1) For aircraft, $7,034,926,000. 
(2) For weapons, including missiles 
and 
torpedoes, 
$1,345,408,000. 
(3) For shipbuilding and conversion, $6,193,330,000. 
(4) For other procurement, $2,893,840,000. 
(b) MARINE CORPS.—^Funds are hereby authorized to be appro-
priated for fiscal year 1997 for procurement for the Marine Corps 
in the amount of $560,148,000. 
(c) NAVY AND MARINE CORPS AMMUNITION.—Funds are hereby 
authorized to be appropriated for procurement of ammunition for 
the Navy and the Marine Corps in the amount of $293,239,000. 
SEC. 103. AIR FORCE. 
Funds are hereby authorized to be appropriated for fiscal year 
1997 for procurement for the Air Force as follows: 
(1) For aircraft, $6,764,420,000. 
(2) For missiles, $2,525,875,000. 
(3) For ammunition, $278,302,000. 
(4) For other procurement, $5,814,419,000. 
SEC. 104. DEFENSE-WIDE ACTIVITIES. 
Funds are hereby authorized to be appropriated for fiscal year 
1997 
for 
Defense-wide 
procurement 
in 
the 
amount 
of 
$2,008,261,000. 
SEC. 105. RESERVE COMPONENTS. 
Funds are hereby authorized to be appropriated for fiscal year 
1997 for procurement of aircraft, vehicles, communications equip-
ment, and other equipment for the reserve components of the Araied 
Forces as follows: 
(1) For the Army National Guard, $171,000,000. 
(2) For the Air National Guard, $234,000,000. 
(3) For the Army Reserve, $98,000,000. 
(4) For the Naval Reserve, $116,000,000. 
(5) For the Air Force Reserve, $94,000,000. 
(6) For the Marine Corps Reserve, $67,000,000. 
SEC. 106. DEFENSE INSPECTOR GENERAL. 
Funds are hereby authorized to be appropriated for fiscal year 
1997 for procurement for the Inspector General of the Department 
of Defense in the amount of $2,000,000. 
SEC. 107. CHEMICAL DEMIUTARIZATION PROGRAM. 
There is hereby authorized to be appropriated for fiscal year 
1997 the amount of $759,847,000 for— 
(1) the destruction of lethal chemical agents and munitions 
in accordance with section 1412 of the Department of Defense 
Authorization Act, 1986 (50 U.S.C. 1521); and 
(2) the destruction of chemical warfare materiel of the 
United States that is not covered by section 1412 of such 
Act. 
SEC. 108. DEFENSE HEALTH PROGRAMS. 
Funds are hereby authorized to be appropriated for fiscal year 
1997 for the Department of Defense for procurement for carrying 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2441 
out health care programs, projects, and activities of the Department 
of Defense in the total amount of $269,470,000. 
Subtitle B—^Army Programs 
SEC. 111. REPEAL OF LIMITATION ON PROCUREMENT OF ARMED 
KIOWA WARRIOR HELICOPTERS. 
Section 133 of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1383) is 
repealed. 
SEC. 112. MULTIYEAR 
PROCUREMENT 
AUTHORITY 
FOR ARMY 
PROGRAMS. 
(a) AVENGER AIR DEFENSE MISSILE SYSTEM.—Notwithstanding 
the limitation in subsection (k) of section 2306b of title 10, United 
States Code, relating to the maximum duration of a multiyear 
contract under the authority of that section, the Secretary of the 
Army may extend the multiyear contract in effect during fiscal 
year 1996 for the Avenger Air Defense Missile system through 
fiscal year 1997 and may award such an extension. 
(b) ARMY TACTICAL MISSILE SYSTEM.—^The Secretary of the 
Army may, in accordance with section 2306b of title 10, United 
States Code, enter into a multiyear procurement contract, beginning 
with the fiscal year 1997 program year, for procurement of the 
Army Tactical Missile System (Army TACMS). 
(c) JAVELIN MISSILE SYSTEM.—The Secretary of the Army may, 
in accordance with section 2306b of title 10, United States Code, 
enter into multiyear procurement contracts for the procurement 
of the Javelin missile system. 
SEC. 113. BRADLEY TOW 2 TEST PROGRAM SETS. 
Of the funds authorized to be appropriated under section 101(3) 
of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 110 Stat. 204), $6,000,000 is available for 
the procurement of Bradley TOW-2 Test Program sets. 
Subtitle C—Navy Programs 
SEC. 121. NUCLEAR ATTACK SUBMARINE PROGRAMS. 
(a) AMOUNTS AUTHORIZED FROM S C N ACCOUNT.—(1) Of the 
amount authorized to be appropriated by section 102(a)(3) for fiscal 
year 1997— 
(A) $699,071,000 is available for continued construction 
of the third vessel (designated SSN-23) in the Seawolf attack 
submarine class, which shall be the final vessel in that class; 
(B) $296,186,000 is available for long-lead and advance 
construction and procurement of components for construction 
of a submarine (previously designated by the Navy as the 
New Attack Submarine) beginning in fiscal year 1998 to be 
built by Electric Boat Division; and 
(C) $701,000,000 is available for long-lead and advance 
construction and procurement of components for construction 
of a second submarine (previously designated by the Navy 
as the New Attack Submarine) beginning in fiscal year 1999 
to be built by Newport News Shipbuilding. 
110 STAT. 2442 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(2) In addition to the purposes for which the amounts under 
subparagraphs (B) and (C) of paragraph (1) are available, such 
amounts are also available for contracts with Electric Boat Division 
and Newport News Shipbuilding to carry out the provisions of 
the "Memorandum of Agreement Among the Department of the 
Navy, Electric Boat Corporation (EB) and Newport News Shipbuild-
ing and Drydock Company (NNS) Concerning the New Attack Sub-
marine", dated April 5, 1996, relating to design data transfer, 
design improvements, integrated process teams, and updated design 
base. 
(b) AMOUNTS AUTHORIZED FROM NAVY R D T & E ACCOUNT.— 
(1) Of the amount authorized to be appropriated by section 201(2), 
$487,611,000 is available for the design of the submarine previously 
designated by the Navy as the New Attack Submarine. 
(2)(A) Of the amount authorized to be appropriated by section 
201(2), $60,000,000 is available for obligation under contracts with 
Electric Boat Division and Newport News Shipbuilding and other 
entities to address the inclusion on future nuclear attack sub-
marines of the core advanced technologies that are identified by 
the Secretary of Defense (in the report of the Secretary entitled 
"Report on Nuclear Attack Submarine Procurement and Submarine 
Technology", submitted to Congress on March 26, 1996) as those 
technologies the maturation of which the Submarine Technology 
Assessment Panel recommended be addressed in its March 15, 
1996, final report to the Assistant Secretary of the Navy for 
Research, Development, and Acquisition, as follows: hydrodynamics, 
alternative sail designs, advanced arrays, electric drive, external 
weapons, and active controls and mounts. 
(B) Of the 
amount 
available 
under 
subparagraph 
(A), 
$20,000,000 shall be equally divided between Electric Boat Division 
and Newport News Shipbuilding for the purpose of ensuring that 
those shipbuilders are principal participants in the process of 
addressing the inclusion of technologies referred to in subparagraph 
(A) on future nuclear attack submarines. Contracts with the ship-
builders Under this subparagraph shall provide the shipbuilders 
with wide latitude to pursue submarine-wide, integrated systems 
approaches to the inclusion of such technologies. The Secretary 
of the Navy shall ensure that those shipbuilders have access for 
such purpose (under procedures prescribed by the Secretary) to 
the Navy laboratories and the Office of Naval Intelligence and 
(in accordance with arrangements to be made by the Secretary) 
to the Defense Advanced Research Projects Agency. 
(3) Of the amount authorized to be appropriated by section 
201(2), $38,000,000 is available to begin funding those Category 
I and Category II advanced technologies described in Appendix 
C of the report of the Secretary of Defense referred to in paragraph 
(2)(A). The Secretary of the Navy shall ensure that Electric Boat 
Division and Newport News Shipbuilding are also principal partici-
pants in the technology initiatives pursued with such funds to 
ensure submarine-wide, integrated systems approaches to the inclu-
sion of such technologies on future nuclear attack submarines. 
(4) In addition to the purposes for which the amounts under 
paragraphs (1), (2), and (3) are available, such amounts are also 
available for contracts with Electric Boat Division and Newport 
News Shipbuilding to carry out the provisions of the memorandum 
of agreement referred to in subsection (a)(2) for research and devel-
opment activities under that memorandum of agreement. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2443 
(c) AMOUNT FROM FISCAL YEAR 1996 FUNDS FOR NATIONAL 
DEFENSE SEALIFT FUND.—(1) Section 132 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 210) is repealed. 
(2) The amount referred to in section 132 of the National 
Defense Authorization Act for Fiscal Year 1996 (as in effect imme-
diately before the repeal by paragraph (1)) shall be available to 
the Secretary of the Navy for activities relating only to advanced 
submarine technology that involve the construction of large scale 
vehicles for purposes of hydrodynamic and hydroacoustic research 
on developmental designs for hulls and propulsion systems. 
(d) CONTRACTS AUTHORIZED.—(1) The Secretary of the Navy 
is authorized, using funds available pursuant to subparagraphs 
(B) and (C) of subsection (a)(1), to enter into contracts with Electric 
Boat Division and Newport News Shipbuilding, and suppliers of 
components, during fiscal year 1997 for— 
(A) the procurement of long-lead components for the fiscal 
year 1998 submarine and the fiscal year 1999 submarine under 
this section; and 
(B) advance construction of such components and other 
components for such submarines. 
(2) The Secretary may enter into a contract or contracts under 
this section with the shipbuilder of the fiscal year 1998 submarine 
only if the Secretary enters into a contract or contracts under 
this section with the shipbuilder of the fiscal year 1999 submarine. 
(e) LIMITATIONS.—(1)(A) Of the amounts specified in subsection 
(a)(1), not more than $100,000,000 may be obligated until the Sec-
retary of Defense certifies in writing to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives that procurement of nuclear attack 
submarines described in subparagraph (B) will be under one or 
more contracts that are entered into after competition between 
Electric Boat Division and Newport News Shipbuilding in which 
the Secretary of the Navy solicits competitive proposals and awards 
the contract or contracts on the basis of price. 
(B) The submarines referred to in subparagraph (A) are nuclear 
attack submarines that are to be constructed beginning— 
(i) after fiscal year 1999; or 
(ii) if four submarines are to be procured as provided for 
in the plan required under section 131(c) of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 208), after fiscal year 2001. 
(2) Of the amounts specified in subsection (a)(1), not more 
than $675,000,000 may be obligated until the Under Secretary 
of Defense for Acquisition and Technology submits to the congres-
sional committees specified in paragraph (1) a report in writing 
detailing the following: 
(A) The Under Secretary's oversight activities to date, and 
plans for the future, for the development and improvement 
of the nuclear attack submarine program of the Navy as 
required by section 131(b)(2)(C) of the National 
Defense 
Authorization Act for Fiscal Year 1996 (110 Stat. 207). 
(B) The implementation of, and activities conducted under, 
the program required to be established by the Director of the 
Defense Advanced Research Projects Agency by section 131(i) 
of the National Defense Authorization Act for Fiscal Year 1996 
(110 Stat. 210) for the development and demonstration of 
Certification. 
Reports. 
110 STAT. 2444 
PUBLIC LAW 104-201—SEPT. 23, 1996 
advanced submarine technologies and a rapid prototype acquisi-
tion strategy for both land-based and at-sea subsystem and 
system demonstrations of such technologies. 
(C) A description of all research, development, test, and 
evaluation programs, projects, or activities within the Depart-
ment of Defense which, in the opinion of the Under Secretary, 
are designed to contribute to the development and demonstra-
tion of advanced submarine technologies leading to a more 
capable, more affordable nuclear attack submarine, specifically 
identifying ongoing involvement, and plans for future involve-
ment, in any such program, project, or activity by either Electric 
Boat Division or Newport News Shipbuilding, or by both. 
Certification. 
(3) Of the amount specified in subsection (b)(1), not more than 
$100,000,000 may be obligated or expended until the Under Sec-
retary of Defense (Comptroller) certifies in writing to the congres-
sional committees specified in paragraph (1) that— 
(A) funds specified in subsection (c)(2) have been made 
available for obligation; and 
(B) to the extent that funds specified in paragraphs (2) 
and (3) of subsection (b) have been appropriated for the pur-
poses specified in such paragraphs, such funds have been made 
available for obligation. 
(f) ACQUISITION SIMPLIFICATION.—In furtherance of the direc-
tion provided by subsection (d) of section 131 of the National 
Defense Authorization Act for Fiscal Year 1996 (110 Stat. 209) 
to the Secretary of Defense regarding the application of acquisition 
reform policies and procedures to the submarine program under 
that section, the Secretary shall direct the Secretary of the Navy 
to implement for the submarine programs of the Navy acquisition 
reform initiatives similar in intent and approach to the initiatives 
begun by the Secretary of the Air Force in May 1995 and referred 
Reports. 
to as the "Lightning Bolt" initiatives. The Secretary of the Navy 
shall, not later than March 31, 1997, submit to the congressional 
committees specified in subsection (e)(1) a report on the results 
of the implementation of such initiatives. 
(g) DESIGN RESPONSIBILITY.—(1) The Secretary of the Navy 
shall carry out the submarine program described in section 131 
of the National Defense Authorization Act for Fiscal Year 1996 
in a manner that ensures that each of the two shipbuilders in-
volved in the design and construction of the four submarines 
described in that section be allowed to propose to the Secretary 
any design improvement that the shipbuilder considers appropriate 
for the submarines to be built by that shipbuilder as part of those 
four submarines. The Secretary shall ensure that both shipbuilders 
have full and open access to all design data concerning the design 
of the submarine previously designated by the Navy as the New 
Attack Submarine. 
(2) The designs proposed by the shipbuilders should proceed 
from, but not be limited to, the specific advanced technologies 
referred to in subsection (b)(2)(A), especially technologies involving 
hydrodynamics and hydroacoustics concepts. 
Reports. 
(3) The Secretary shall require both shipbuilders to submit 
to the Secretary an annual report on the progress of the design 
work on the submarines referred to in paragraph (1) and shall 
transmit each such report to the committees specified in subsection 
(e)(1). 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2445 
(4) The Secretary shall also submit an annual report to the Reports, 
committees specified in subsection (e)(1) on the design improve-
ments proposed by the two shipbuilders under paragraph (1) for 
incorporation on any of the four submarines and on the degree 
to which design information on the base design and design improve-
ments has been shared between the shipbuilders. Each annual 
report shall set forth each design improvement proposed and 
whether that proposal was— 
(A) reviewed, approved, and funded by the Navy; 
(B) reviewed and approved, but not funded; or 
(C) not approved, in which case the report shall include 
the reasons therefor and any views of the shipyard making 
the proposal. 
(5) The reports referred to in paragraphs (3) and (4) shall 
be submitted concurrently with the annual revisions to the Sec-
retary of Defense's nuclear attack submarine plan required by sec-
tion 131(e) of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 209). 
(h) SERIAL PRODUCTION.—^The Secretary of Defense shall modify 
the plan relating to development of a program leading to production 
of a more capable and less expensive submarine than the New 
Attack Submarine that was submitted to Congress pursuant to 
section 131(c) of the National Defense Authorization Act for Fiscal 
Year 1996 in order to provide in such plan the option for selection 
of a design for a next submarine for serial production not earlier 
than fiscal year 2002 (rather than fiscal year 2003, as provided 
in paragraph (3)(B) of such section 131(c)). 
(i) 
REFERENCES TO SHIPBUILDERS.—For purposes of this 
section— 
(1) the shipbuilder referred to as "Electric Boat Division" 
is the Electric Boat Division of the General Dynamics Corpora-
tion; and 
(2) the shipbuilder referred to as "Newport News Shipbuild-
ing" is the Newport News Shipbuilding and Drydock Company. 
Cj) SUBMARINES DEFINED BY REFERENCE TO FISCAL YEAR.— 
For purposes of this section— 
(1) the term "fiscal year 1998 submarine" means the sub-
marine referred to in subsection (a)(1)(B); and 
(2) the term "fiscal year 1999 submarine" means the sub-
marine referred to in subsection (a)(1)(C). 
SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM. 
(a) FUNDING.—(1) Subject to paragraph (3), funds authorized 
to be appropriated by section 102(a)(3) may be made available 
for contracts entered into during fiscal year 1996 under subsection 
(b)(1) of section 135 of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 211) for 
construction for the third of the three Arleigh Burke class destroyers 
covered by that subsection. Such funds are in addition to amounts 
made available for such contracts by the second sentence of sub-
section (a) of that section. 
(2) Subject to paragraph (3), funds authorized to be appro-
priated by section 102(a)(3) may be made available for contracts 
entered into during fiscal year 1997 under subsection (b)(2) of 
such section 135 for construction (including advance procurement) 
for the Arleigh Burke class destroyers covered by such subsection 
(b)(2). 
110 STAT. 2446 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(3) The aggregate amount of funds available under paragraphs 
(1) and (2) for contracts referred to in such paragraphs may not 
exceed $3,483,030,000. 
(4) Within the amount authorized to be appropriated by section 
102(a)(3), $525,000,000 is authorized to be appropriated for advance 
procurement for construction for the Arleigh Burke class destroyers 
authorized by subsection (b). 
(b) AUTHORITY FOR MULTIYEAR PROCUREMENT OF TWELVE VES-
SELS.—The Secretary of the Navy is authorized, pursuant to section 
2306b of title 10, United States Code, to enter into multiyear 
contracts for the procurement of a total of 12 Arleigh Burke class 
destroyers at a procurement rate of three ships in each of fiscal 
years 1998, 1999, 2000, and 2001 in accordance with this subsection 
and subsection (a)(4), subject to the availability of appropriations 
for such destroyers. A contract for construction of one or more 
vessels that is entered into in accordance with this subsection 
shall include a clause that limits the liability of the Government 
to the contractor for any termination of the contract. 
SEC. 123. EA-6B AIRCRAFT REACTIVE JAMMER PROGRAM. 
(a) LIMITATION.—^None of the funds appropriated pursuant to 
section 102(a)(1) for modifications or upgrades of EA-6B aircraft 
may be obligated, other than for a reactive jammer program for 
such aircraft, until 30 days after the date on which the Secretary 
of the Navy submits to the congressional defense committees in 
writing— 
Certification. 
(1) a Certification that some or all of such funds have 
been obligated for a reactive jammer program for EA-6B air-
craft; and 
Reports. 
(2) a report that sets forth a detailed, well-defined program 
for— 
(A) developing a reactive jamming capability for EA-
6B aircraft; and 
(B) upgrading the EA-6B aircraft of the Navy to incor-
porate the reactive jamming capability. 
(b) CONTINGENT TRANSFER OF FUNDS TO AIR FORCE.—(1) If 
the Secretary of the Navy has not submitted the certification and 
report described in subsection (a) to the congressional defense 
committees before June 1, 1997, then, on that date, the Secretary 
of Defense shall transfer to the Air Force, out of appropriations 
available to the Navy for fiscal year 1997 for procurement of aircraft, 
the amount equal to the amount appropriated to the Navy for 
fiscal year 1997 for modifications and upgrades of EA-6B aircraft. 
(2) Funds transferred to the Air Force pursuant to paragraph 
(1) shall be available for maintaining and upgrading the jamming 
capability of EF-111 aircraft. 
SEC. 124. T-39N TRAINER AIRCRAFT FOR THE NAVY. 
The Secretary of the Navy may, using funds appropriated for 
fiscal year 1996 for procurement of T-39N trainer aircraft for 
the Navy that remain available for obligation for such purpose, 
enter into a contract for the acquisition of T-39N aircraft for naval 
flight officer training that are suitable for low-level training flights. 
Such a contract may be entered into only after the Secretary com-
plies with section 137 of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 212). 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2447 
SEC. 125. PENGUIN MISSILE PROGRAM. 
(a) MuLTiYEAR PROCUREMENT AUTHORITY.—The Secretary of 
the Navy may, in accordance with section 2306b of title 10, United 
States Code, enter into multiyear procurement contracts for the 
procurement of not more than 106 Penguin missile systems. 
(b) LIMITATION ON TOTAL COST.—The total amount obligated 
or expended for procurement of Penguin missile systems under 
contracts under subsection (a) may not exceed $84,800,000. 
Subtitle D—^Air Force Programs 
I^C. 131. REPEAL OF LIMITATION ON PROCUREMENT OF F-15E AIR-
CRAFT. 
Section 134 of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1383) is 
repealed. 
SEC. 132. MODIFICATION TO MULTIYEAR PROCUREMENT AUTHORITY 
FOR C-17 AIRCRAFT PROGRAM. 
(a) MULTIYEAR CONTRACTS AUTHORIZED.—The Secretary of the 
Air Force may enter into one or more multiyear contracts for 
the procurement of C-17 aircraft (including the section 2703 con-
tract entered into before the date of the enactment of this Act 
under the authority of section 2703 of the Supplemental Appropria-
tions Act of 1996 (title II of Public Law 104-134)). The total number 
of aircraft contracted to be procured under such multiyear contracts 
may not exceed 80. Any such contract shall be entered into in 
accordance with section 2306b of title 10, United States Code (and 
subject to such modifications as may be authorized by law in the 
maximum period for such contracts specified in subsection (k) of 
such section). 
(b) REQUIREMENT TO NEGOTIATE OPTION TO CONVERT EXISTING 
CONTRACT TO SIX PROGRAM YEARS.—The Secretary of the Air Force 
shall negotiate with the prime contractor for the C-17 aircraft 
program so as to achieve a contract option for the United States 
under the section 2703 contract to convert the multiyear procure-
ment period under that contract to a period of six program years 
based upon the level of funding for that program for fiscal year 
1997. 
(c) CONTRACT PERIOD.—^A contract entered into after the date 
of the enactment of this Act on a multiyear basis under the author-
ity of subsection (a) may (notwithstanding section 2306b(k) of title 
10, United States Code) be for a period of six program years. 
(d) SECTION 2703 CONTRACT DEFINED.—^For purposes of this 
section, the term "section 2703 contract" means the contract entered 
into by the Secretary of the Air Force on May 31, 1996, with 
the prime contractor for the C-17 aircraft program under the 
authority of section 2703 of the Supplemental Appropriations Act 
of 1996 (title II of Public Law 104-134) providing for a multiyear 
procurement of C-17 aircraft over seven program years with an 
option for the Secretary to convert that period to six program 
years. 
110 STAT. 2448 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Subtitle E—Other Matters 
SEC. 141, ASSESSMENTS OF MODERNIZATION PRIORITIES OF THE 
RESERVE COMPONENTS. 
(a) ASSESSMENTS REQUIRED.—Not later than December 1, 1996, 
each officer referred to in subsection (b) shall submit to the congres-
sional defense committees an assessment of the modernization prior-
ities established for the reserve component or reserve components 
for which that officer is responsible. 
(b) RESPONSIBLE OFFICERS.—^The officers required to submit 
a report under subsection (a) are as follows: 
(1) The Chief of the National Guard Bureau. 
(2) The Chief of Army Reserve. 
(3) The Chief of Air Force Reserve. 
(4) The Director of Naval Reserve. 
(5) The Commanding General, Marine Forces Reserve. 
SEC. 142. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMI-
CAL AGENTS AND MUNITIONS. 
Section 152 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 214; 50 U.S.C. 1521 
note) is amended by adding at the end the following new sub-
sections: 
"(e) ASSESSMENT OF ALTERNATIVE TECHNOLOGIES FOR DEMILI-
TARIZATION OF ASSEMBLED CHEMICAL MUNITIONS.—(1) In addition 
to the assessment required by subsection (c), the Secretary of 
Defense shall conduct an assessment of the chemical demilitariza-
tion program for destruction of assembled chemical munitions and 
of the alternative demilitarization technologies and processes (other 
than incineration) that could be used for the destruction of the 
lethal chemical agents that are associated with these munitions, 
while ensuring maximum protection for the general public, the 
personnel involved in the demilitarization program, and the environ-
ment. The measures considered shall be limited to those that would 
minimize the risk to the public and reduce the total cost of the 
chemical agents and munitions destruction program. The assess-
ment shall be conducted without regard to any limitation that 
would otherwise apply to the conduct of such assessment under 
any provision of law. 
"(2) The assessment shall be conducted in coordination with 
the National Research Council. 
"(3) Among the alternatives, the assessment shall include a 
determination of the cost of incineration of the current chemical 
munitions stockpile by building incinerators at each existing facility 
compared to the proposed cost of dismantling those same munitions, 
neutrsdizing them at each storage site (other than Tooele Army 
Depot or Johnston Atoll), and transporting the neutralized remains 
and all munitions parts to a treatment, storage, and disposal facility 
within the United States that has the necessary environmental 
permits to undertake incineration of the material. 
"(4) Based on the results of the assessment, the Secretary 
shall develop appropriate recommendations for revision of the 
chemical demilitarization program. 
Reports. 
"(5) Not later than December 31, 1997, the Secretary of Defense 
shall submit to Congress a report on the assessment conducted 
in accordance with paragraph (1) and any recommendations for 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2449 
revision of the chemical demilitarization program, including the 
continued development of alternative demilitarization technologies 
and processes other than incineration that could be used for the 
destruction of the lethal chemical agents that are associated with 
these assembled chemical munitions and the chemical munitions 
demilitarization sites for which the selected technologies should 
be developed. 
"(f) 
PILOT PROGRAM FOR DEMILITARIZATION OF CHEMICAL 
AGENTS FOR ASSEMBLED MUNITIONS.—(1) If the Secretary of 
Defense makes a decision to continue the development of an alter-
native demilitarization technology or process (other than inciner-
ation) that could be used for the destruction of the lethal chemical 
agents that are associated with assembled chemical munitions, 
$25,000,000 shall be available from the funds authorized to be 
appropriated in section 107 of the National Defense Authorization 
Act for Fiscal Year 1997 for the chemical agents and munitions 
destruction program, in order to initiate a pilot program using 
the selected alternative technology or process for the destruction 
of chemical agents that are stored at these sites. 
"(2) Not less than 30 days before using funds to initiate the Notice. 
pilot program under paragraph (1), the Secretary shall submit 
notice in writing to Congress of the Secretary's intent to do so. 
"(3) The pilot program shall be conducted at the selected chemi- 
, 
cal agent and munitions stockpile storage site for which the alter-
native technology or process is recommended.". 
SEC. 143. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT 
RETOOLING AND MANUFACTURING SUPPORT INITIATIVE. 
Section 193(a) of the Armament Retooling and Manufacturing 
Support Act of 1992 (subtitle H of title I of Public Law 102-
484; 10 U.S.C. 2501 note) is amended by striking out "During 
fiscal years 1993 through 1996" and inserting in lieu thereof "During 
fiscal years 1993 through 1998". 
TITLE II—RESEARCH, DEVELOPMENT, 
TEST, AND EVALUATION 
Subtitle A—^Authorization of Appropriations 
Sec. 201. Authorization of appropriations. 
Sec. 202. Amount for basic and applied research. 
Sec. 203. Dual-use technology programs. 
Sec. 204. Defense Special Weapons Agency. 
Subtitle B—Program Requirements, Restrictions, and Limitations 
Sec. 211. Space launch modernization. 
Sec. 212. Space-Based Infrared System program. 
Sec. 213. Clementine 2 micro-satellite development program. 
Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft. 
Sec. 215. Live-fire survivability testing of F-22 aircraft. 
Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance aircraft. 
Sec. 217. Cost analysis of F-22 aircraft program. 
Sec. 218. F-22 aircraft program reports. 
Sec. 219. Cost-benefit analysis of F/A-18E/F aircraft program. 
Sec. 220. Joint Advanced Strike Technology (JAST) program. 
Sec. 221. Unmanned aerial vehicles. 
Sec. 222. High altitude endurance unmanned aerial reconnaissance system. 
Sec. 223. Cyclone class patrol craft self-defense. 
Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber Optic 
Guided Missile (EFOG-M) system. 
Sec. 225. Hydra-70 rocket product improvement program. 
110 STAT. 2450 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Sec. 226. Federally funded research and development centers. 
Sec. 227. Demilitarization of conventional munitions, rockets, and explosives. 
Sec. 228. Research activities of the Defense Advanced Research Projects Agency re-
lating to chemical and biological warfare defense technology. 
Sec. 229. Certification of capability of United States to prevent illegal importation 
of nuclear, biological, or chemical weapons. 
Sec. 230. Nonlethal weapons and technologies programs. 
Sec. 231. Counterproliferation support program. 
Subtitle C—Ballistic Missile Defense Programs 
Sec. 241. Funding for ballistic missile defense programs for fiscal year 1997. 
Sec. 242. Certification of capability of United States to defend against single 
ballistic missile. 
Sec. 243. Report on ballistic missile defense and proliferation. 
Sec. 244. Revision to annual report on ballistic missile defense program. 
Sec. 245. Report on Air Force National Missile Defense Plan. 
Sec. 246. Capability of National Missile Defense system. 
Sec. 247. Actions to limit adverse effects on private sector employment of establish-
ment of National Missile Defense Joint Program Office. 
Sec. 248. ABM Treaty defined. 
Subtitle D—Other Matters 
Sec. 261. Maintenance and repair at Air Force installations. 
Sec. 262. Report relating to Small Business Innovation Research Program. 
Sec. 263. Amendment to University Research Initiative Support program. 
Sec. 264. Amendments to Defense Experimental Program To Stimulate Competitive 
Research. 
Sec. 265. Elimination of report on the use of competitive procedures for the award 
of certain contracts to colleges and universities. 
Sec. 266. Pilot program for transfer of defense technology information to private 
industry. 
Sec. 267. Research under transactions other than contracts and grants. 
Sec. 268. Desalting technologies. 
Sec. 269. Evaluation of digital video network equipment used in Olympic games. 
Sec. 270. Annual joint warfighting science and technology plan. 
Subtitle E—^National Oceanographic Partnership Program 
Sec. 281. Findings. 
Sec. 282. National Oceanographic Partnership Program. 
Subtitle A—^Authorization of 
Appropriations 
SEC. 201. AUTHORIZATION OF APPROPRIATIONS. 
Funds are hereby authorized to be appropriated for fiscal year 
1997 for the use of the Department of Defense for research, develop-
ment, test, and evaluation as follows: 
(1) For the Army, $4,780,615,000. 
(2) For the Navy, $8,068,299,000. 
(3) For the Air Force, $ 14,756,366,000. 
(4) For Defense-wide activities, $9,691,293,000, of which— 
(A) $269,038,000 is authorized for the activities of the 
Director, Test and Evaluation; and 
(B) $21,968,000 is authorized for the Director of Oper-
ational Test and Evaluation. 
SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH. 
(a) FISCAL YEAR 1997.—Of the amounts authorized to be appro-
priated by section 201, $4,031,343,000 shall be available for basic 
research and applied research projects. 
(b) BASIC RESEARCH AND APPLIED RESEARCH DEFINED.—For 
purposes of this section, the term 'Tbasic research and applied 
research" means work funded in program elements for defense 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2451 
research £ind development under Department of Defense category 
6.1 or 6.2. 
SEC. 
203. 
DUAL-USE 
TECHNOLOGY 
PROGRAM. 
(a) ALLOCATION OF FUNDS.—Of the amount appropriated pursu-
ant to the authorization in section 201(4), $85,000,000 shall be 
available for the dual-use technology program under this section. 
(b) DESIGNATION OF OFFICIAL FOR DUAL-USE 
PROGRAM.—(1) 
The Secretary of Defense shall designate a senior official in the 
Office of the Secretary of Defense to have as that official's sole 
responsibilities developing policy relating to, and ensuring effective 
implementation of, the dual-use technology program of the Depart-
ment of Defense. In carrying out such responsibilities, the official 
shall ensure— 
(A) that commercial technologies are integrated into current 
and future military systems to the maximum extent practicable; 
(B) that dual-use projects are coordinated with the joint 
warfighting science and technology plan referred to in section 
270; and 
(C) that dual-use projects of the military departments and 
the defense agencies are coordinated and avoid unnecessary 
duplication. 
(2) The senior official designated under paragraph (1) shall 
Effective date. 
carry out such responsibilities during the period beginning on Octo- Termination 
ber 1, 1996, and ending on September 30, 2000. Such official shall °
*
*
®
-
report directly to the Under Secretary of Defense for Acquisition 
and Technology. 
(c) FUNDING REQUIREMENT.—Of the amounts appropriated 
pursuant to the authorizations in section 201 for the Department 
of Defense for science and technology programs for fiscal year 
1997, at least 5 percent of such amounts shall be available only 
for dual-use projects of the Department of Defense. The funds 
made available under the preceding sentence are in addition to 
the funds made available under subsection (a). 
(d) LIMITATION ON OBLIGATIONS.—Funds made available pursu-
ant to subsections (a) and (c) may be used for a dual-use project 
only if the contract, cooperative agreement, or other transaction 
by which the project is carried out is entered into through the 
use of competitive procedures. 
(e) TRANSFER AUTHORITY.—In addition to the transfer authority 
provided in section 1001, the Secretary of Defense may transfer 
funds made available pursuant to subsections (a) and (c) for a 
dual-use project from a military department or defense agency 
to another military department or defense agency to ensure efficient 
implementation of the dual-use technology program. The Secretary 
may delegate the authority provided in the preceding sentence 
to the senior official designated under subsection (b). 
(f) FEDERAL COST SHARE.—^The share contributed by the Sec-
retary of a military department or the head of a defense agency 
for the cost of a dual-use project during fiscal year 1997 may 
not be greater than 50 percent of the cost of the project for that 
fiscal year. 
(g) REPORT.—^At the same time the President submits to Con-
gress the budget for fiscal year 1998 pursuant to section 1105(a) 
of title 31, United States Code, the Secretary of Defense shall 
submit to Congress a report that specifies the investment strategy 
110 STAT. 2452 
PUBLIC LAW 104-201—SEPT. 23, 1996 
for the dual-use technology program to be conducted during fiscal 
years 1998, 1999, and 2000. 
(h) DEFINITIONS.—In this section: 
(1) The term "dual-use technology program" means the 
program of the Department of Defense under which research 
or development of a dual-use technology (as defined in section 
2491 of title 10, United States Code) is carried out and the 
costs of which are shared between the Department of Defense 
and non-Government entities. The term includes the dual-use 
critical technology program established pursuant to section 
2511 of title 10, United States Code. 
(2) The term "dual-use project" means a project under 
the dual-use technology program. 
(3) The term "science and technology program" means a 
program of a military department under which basic research, 
applied research, or advanced technology development is carried 
out. 
SEC. 204. DEFENSE SPECIAL WEAPONS AGENCY. 
There is hereby authorized to be appropriated for fiscal year 
1997 the amount of $314,313,000 for the Defense Special Weapons 
Agency, of which— 
(1) $7,900,000 is for procurement; 
(2) $218,330,000 is for research, development, test, and 
evaluation; and 
(3) $88,083,000 is for operations and maintenance. 
Subtitle B—Program Requirements, 
Restrictions, and Limitations 
SEC. 211. SPACE LAUNCH MODERNIZATION. 
(a) FUNDING.—Funds appropriated pursuant to the authoriza-
tion of appropriations in section 201(3) are authorized to be made 
available for space launch modernization for purposes and in 
amounts as follows: 
(1) For the Evolved Expendable Launch Vehicle program, 
$44,457,000. 
(2) For a competitive reusable launch vehicle program (pro-
gram element 63401F), $25,000,000. 
(b) LIMITATIONS.—(1) Of the funds made available for the 
reusable launch vehicle program pursuant to subsection (a)(2), the 
total amount obligated for such purpose may not exceed the total 
amount allocated in the fiscal year 1997 current operating plan 
of the National Aeronautics and Space Administration for the 
Reusable Space Launch program of the National Aeronautics and 
Space Administration. 
(2) Of the funds made available for the Evolved Expendable 
Launch Vehicle program pursuant to subsection (a)(1), the total 
amount obligated for such purpose may not exceed $20,000,000 
until the Secretary of Defense certifies to Congress that the Sec-
retary has made available for obligation the funds, if any, that 
are made available for the Reusable Launch Vehicle program pursu-
ant to subsection (a)(2). 
Plans. 
(c) COORDINATION OF ENGINE TESTING.—Not later than 90 days 
after the date of the enactment of this Act, the Secretary of Defense 
and the Administrator of the National Aeronautics and Space 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2453 
Administration shall submit to Congress a joint plan for coordinat-
ing and eliminating unnecessary duplication in the operations and 
planned improvements of rocket engine and rocket engine compo-
nent test facilities managed by the Department of the Air Force 
and the National Aeronautics and Space Administration. The plan 
shall provide, to the extent practical, for the development of com-
monly funded and commonly operated facilities. 
SEC. 212. SPACE-BASED INFRARED SYSTEM PROGRAM. 
(a) FUNDING.—Funds appropriated pursuant to the authoriza-
tion of appropriations in section 201(3) are authorized to be made 
available for the Space-Based Infrared System program for purposes 
and in amounts as follows: 
(1) For Space Segment High, $173,290,000. 
(2) For Space Segment Low (the Space and Missile Tracking 
System), $247,221,000. 
(3) For Cobra Brass, $6,930,000. 
(b) LIMITATION.—Not more than $100,000,000 of the funds 
authorized to be made available under subsection (a)(1) may be 
obligated or expended until the Secretary of Defense certifies to 
Congress that the Secretary has made available the funds author-
ized to be made available under subsection (a)(2) for the purpose 
of accelerating the deployment of the Space Segment Low (the 
Space and Missile Tracking System). 
(c) PROGRAM MANAGEMENT.—Before the submission of the 
President's budget for fiscal year 1998, the Secretary of Defense 
shall conduct a review of the appropriate management responsibil-
ities for the Space and Missile Tracking System, including whether 
transferring such management responsibility from the Air Force 
to the Ballistic Missile Defense Organization would result in 
improved program efficiencies and support. 
SEC. 
213. 
CLEMENTINE 
2 
MICRO-SATELLITE 
DEVELOPMENT 
PROGRAM. 
(a) AMOUNT FOR PROGRAM.—Of the amount authorized to be 
appropriated under section 201(3), $50,000,000 shall be available 
for the Clementine 2 micro-satellite near-Earth asteroid interception 
mission. 
(b) LIMITATION.—Of the funds authorized to be appropriated 
pursuant to this Act for the global positioning system (GPS) Block 
II F Satellite system, not more than $25,000,000 may be obligated 
until the Secretary of Defense certifies to Congress that— 
(1) funds appropriated for fiscal year 1996 for the 
Clementine 2 Micro-Satellite development program have been 
obligated in accordance with Public Law 104-106 and the Joint 
Explanatory Statement of the Committee of Conference accom-
panying S. 1124 (House Report 104-450 (104th Congress, sec-
ond session)); and 
(2) the Secretary has made available for obligation the 
funds appropriated for fiscal year 1997 for the purpose specified 
in subsection (a). 
SEC. 214. LIVE-FIRE SURVIVABILITY TESTING OF V-22 OSPREY AIR-
CRAFT. 
(a) AUTHORITY FOR RETROACTIVE WAIVER.—^The Secretary of 
Defense may, in accordance with section 2366(c) of title 10, United 
States Code, waive for the V-22 Osprey aircrsifl program the surviv-
ability tests required by that section, notwithstanding that such 
program has entered engineering and manufacturing development. 
Certification. 
Review. 
Certification. 
110 STAT. 2454 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(b) REPORT TO CONGRESS.—In exercising the waiver authority 
in section 2366(c) of title 10, United States Code, the Secretary 
shall submit to Congress a report explaining how the Secretary 
plans to evaluate the survivability of the V-22 Osprey aircraft 
system and assessing possible alternatives to realistic survivability 
testing of the system. 
(c) ALTERNATIVE SURVIVABILITY TEST REQUIREMENTS.—If the 
Secretary of Defense submits in accordance with section 2366(cX 1) 
of title 10, United States Code, a certification that live-fire testing 
of the V-22 Osprey aircraft would be unreasonably expensive and 
impractical, the Secretary shall require that components critical 
to the survivability of the V-22 Osprey aircraft be subjected to 
live-fire testing under an alternative live-fire testing program that, 
by reason of the number of such components tested and the realism 
of the threat environments under which the components are tested, 
will yield test results that provide a sufficient basis for drawing 
meaningful conclusions about the survivability of V-22 Osprey air-
craft. 
(d) FUNDING.—^The funds required to carry out any alternative 
live-fire testing of the V-22 Osprey aircraft system shall be made 
available from amounts appropriated for the V-22 Osprey program. 
SEC. 215. LIVE-FIRE SURVIVABILITY TESTING OF F-22 AIRCRAFT. 
(a) AUTHORITY FOR RETROACTIVE WAIVER.—^The Secretary of 
Defense may, in accordance with section 2366(c) of title 10, United 
States Code, waive for the F-22 aircraft program the survivability 
tests required by that section, notwithstanding that such program 
has entered engineering and manufacturing development. 
(b) ALTERNATIVE SURVIVABILITY TEST REQUIREMENTS.—If the 
Secretary of Defense submits in accordance with section 2366(c)(1) 
of title 10, United States Code, a certification that live-fire testing 
of the F-22 aircraft would be unreasonably expensive and imprac-
tical, the Secretary shall require that components and subsystems 
critical to the survivability of the F-22 aircraft be subjected to 
live-fire testing under an alternative live-fire testing program that, 
by reason of the number of such components and subsystems tested 
and the realism of the threat environments under which the compo-
nents and subsystems are tested, will yield test results that provide 
a sufficient basis for drawing meaningful conclusions about the 
survivability of F-22 aircraft. 
(c) FUNDING.—^The funds required to carry out any alternative 
live-fire testing of the F-22 aircraft system shall be made available 
from amounts appropriated for the F-22 program. 
SEC. 216. LIMITATION ON FUNDING FOR F-16 TACTICAL MANNED 
RECONNAISSANCE AIRCRAFT. 
Effective date. 
(a) LIMITATION.—Effective on the date of the enactment of 
this Act, not more than $50,000,000 (in fiscal year 1997 constant 
dollars) may be obligated or expended for— 
(1) research, development, test, and evaluation for, and 
acquisition and modification of, the F-16 tactical manned recon-
naissance aircraft program; and 
(2) costs associated with the termination of such program. 
(b) EXCEPTION.—^The limitation in subsection (a) shall not apply 
to obligations required for improvements planned before the date 
of the enactment of this Act to incorporate the common data link 
into the F-16 tactical manned reconnaissance aircraft. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2455 
SEC. 217. COST ANALYSIS OF F-22 AIRCRAFT PROGRAM. 
(a) REVIEW AND REPORT.—The Secretary of Defense shall direct 
the Cost Analysis Improvement Group in the Office of the Secretary 
of Defense to review the F-22 aircraft program, analyze and esti-
mate the production costs of the program, and submit to the Sec-
retary a report on the results of the review. 
(b) CONTENT OF REPORT.—The report shall include— 
(1) a comparison of— 
(A) the results of the review, with 
(B) the results of the last independent estimate of 
production costs of the program that was prepared by the 
Cost Analysis Improvement Group in July 1991; and 
(2) a description of any major changes in programmatic 
assumptions that have occurred since the estimate referred 
to in paragraph (1)(B) was made, including any major change 
in assumptions regarding the program schedule, the quantity 
of aircraft to be developed and acquired, and the annual rates 
of production, together with an assessment of the effects of 
such changes on the program. 
(c) SUBMISSION OF REPORT.—Not later than March 30, 1997, 
the Secretary shall submit the report to the congressional defense 
committees, together with the Secretary's views on the matters 
covered by the report. 
(d) LIMITATION ON USE OF FUNDS PENDING SUBMISSION OF 
REPORT.—^Not more than 92 percent of the funds appropriated 
for the F-22 aircraft program pursuant to the authorization of 
appropriations in section 103(1) may be expended until the Sec-
retary of Defense submits the report required under this section. 
SEC. 218. F-22 AIRCRAFT PROGRAM REPORTS. 
(a) ANNUAL REPORT.—(1) At the same time that the President 
submits the budget for a fiscal year to Congress pursuant to section 
1105(a) of title 31, United States Code, the Secretary of Defense 
shall submit to Congress a report on event-based decisionmaking 
for the F-22 aircraft program for that fiscal year. The Secretary 
shall submit the report for fiscal year 1997 not later than October 
1, 1996. 
(2) The report for a fiscal year shall include the following: 
(A) A discussion of each decision known within the Depart-
ment of Defense as an "event-based decision" that is expected 
to be made during that fiscal year regarding whether the F -
22 program is to proceed into a new phase or into a new 
administrative subdivision of a phase. 
(B) The criteria known within the Department of Defense 
as "exit criteria" to be applied, for purposes of making the 
event-based decision, in determining whether the F-22 aircraft 
program has demonstrated the specific progress necessary for 
proceeding into the new phase or administrative subdivision 
of a phase. 
(b) REPORT ON EVENT-BASED DECISIONS.—Not later than 30 
days after an event-based decision has been made for the F-22 
aircraft program, the Secretary of Defense shall submit to Congress 
a report on the decision. The report shall include the following: 
(1) A discussion of the commitments made, and the commit-
ments to be made, under the program as a result of the decision. 
(2) The exit criteria applied for purposes of the decision. 
110 STAT. 2456 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(3) How, in terms of the exit criteria, the program dem-
onstrated the specific progress justifying the decision. 
SEC. 219. COST-BENEFIT ANALYSIS OF F/A-18E/F AIRCRAFT PROGRAM. 
(a) REPORT ON PROGRAM.—Not later than March 30, 1997, 
the Secretary of Defense shall submit to the congressional defense 
committees a report on the F/A-18E/F aircraft program. 
(b) 
CONTENT 
OF REPORT.—The report shall contain 
the 
following: 
(1) A review of the F/A-18E/F aircraft program. 
(2) An analysis and estimate of the production costs of 
the program for the total number of aircraft realistically 
expected to be procured at each of three annual production 
rates as follows: 
(A) 18 aircraft. 
(B) 24 aircraft. 
(C) 36 aircraft. 
(3) A comparison of the costs and benefits of the program 
with the costs and benefits of the F/A-18C/D aircraft program 
taking into account the operational combat effectiveness of 
the aircraft. 
(c) LIMITATION ON USE OF FUNDS PENDING SUBMISSION OF 
REPORT.—^Not more than 90 percent of the funds authorized to 
be appropriated by this Act for the procurement of F/A-18E/F 
aircraft may be obligated or expended for procurement of such 
aircraft before the date that is 30 days after the date on which 
the congressional defense committees receive the report required 
under subsection (a). 
SEC. 220. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM. 
(a) ALLOCATION OF FUNDS.—Of the amounts authorized to be 
appropriated pursuant to the authorizations in section 201, 
$602,069,000 shall be available only for advanced technology devel-
opment for the Joint Advanced Strike Technology (JAST) program. 
Of that amount— 
(1) $259,833,000 shall be available only for program ele-
ment 63800N in the budget of the Department of Defense 
for fiscal year 1997; 
(2) $263,836,000 shall be available only for program ele-
ment 63800F in the budget of the Department of Defense 
for fiscal year 1997; and 
(3) $78,400,000 shall be available only for program element 
63800E in the budget of the Department of Defense for fiscal 
year 1997. 
(b) ANALYSIS OF FORCE STRUCTURE.—Of the amounts author-
ized to be appropriated by section 201 for the Joint Advanced 
Strike Technology program, up to $10,000,000 shall be available 
for the conduct of an analysis by the Institute for Defense Analyses 
of the following: 
(1) The weapon systems force structure required to meet 
the anticipated range of threats projected by the intelligence 
community for the period 2000 through 2025. 
(2) Alternative force mixes, including, at a minimum, the 
following force mixes: 
(A) Joint Strike Fighter derivative aircraft; remanufac-
tured AV-8 aircraft; F-18C/D, F-18E/F, AH-64, AH-IW, 
RAH-66, F-14, F-16, F-15, F-117, F-22, B-1, B-2, and 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2457 
B-52 aircraft; and air-to-surface and surface-to-surface 
weapons systems. 
(B) Joint Strike Fighter derivative aircraft; remanufac-
tured AV-8 aircraft; F-18C/D, F-18E/F, F-14, F-16, F -
15, F-117, and F-22 aircraft; and air-to-surface and sur-
face-to-surface weapons systems. 
(3) Cost and operational effectiveness of the alternative 
force mixes analyzed under paragraph (2), including sensitivity 
analyses related to system performance, costs, threats, and 
force employment scenarios. 
(4) Required operational capability dates of systems not 
yet in production for the force mixes analyzed under paragraph 
(2). 
(5) Affordability, commonality, and roles and missions 
considerations related to the alternative force mixes analyzed 
under paragraph (2). 
(c) COST REVIEW OF FORCE STRUCTURE ANALYSIS.—The Sec- Reports, 
retary of Defense shall direct the Cost Analysis Improvement Group 
in the Office of the Secretary of Defense to review cost estimates 
made under the analysis conducted under subsection (b) and submit 
to the Secretary a report on the results of the review. The report 
may include comments and additional cost sensitivity analyses. 
(d) BRIEFING AND REPORT.—(1) Not later than November 15, 
1996, the Secretary of Defense shall make available to the congres-
sional defense committees a briefing on the plan and assumptions 
for the analysis to be conducted under subsection (b). 
(2) Not later than May 15, 1997, the Secretary of Defense 
shall submit to the congressional defense committees a report 
containing a copy of the analysis conducted under subsection (b) • 
and of the cost review conducted under subsection (c), together 
with the views of the Secretary on such analysis and cost review. 
SEC. 221. UNMANNED AERIAL VEHICLES. 
(a) PROCUREMENT FUNDING REQUEST.—The funding request for 
procurement for unmanned aerial vehicles for any fiscal year shall 
be set forth under the funding requests for the military departments 
in the budget of the Department of Defense. 
(b) TRANSFER OF PROGRAM MANAGEMENT.—Program manage- 
Effective date. 
ment for the Predator Unmanned Aerial Vehicle, and programmed 
funding for such vehicle for fiscal years 1998, 1999, 2000, 2001, 
and 2002 (as set forth in the future-years defense program), shall 
be transferred to the Department of the Air Force, effective October 
1, 1996, or the date of the enactment of this Act, whichever is 
later. 
(c) PROHIBITION ON PROVIDING OPERATING CAPABILITY FROM 
NAVAL VESSELS.—No funds authorized to be appropriated by this 
Act may be obligated for purposes of providing the capability of 
the Predator Unmanned Aerial Vehicle to operate fi:om naval 
vessels. 
SEC. 222. HIGH ALTITUDE ENDURANCE UNMANNED AERIAL RECON-
NAISSANCE SYSTEM. 
Any concepts for an improved Tier III Minus (High Altitude 
Endurance Unmanned Aerial Reconnaissance) system, developed 
using funds authorized to be appropriated under this title, that 
would increase the unit flyaway cost for such system to an amount 
greater than the unit flyaway cost established in either of the 
original contracts for such system, may not be carried out under 
110 STAT. 2458 
PUBLIC LAW 104-201—SEPT. 23, 1996 
the original contracts, but must instead be carried out under 
another contract that is awarded using competitive procedures. 
SEC. 223. CYCLONE CLASS PATROL CRAFT SELF-DEFENSE. 
(a) STUDY REQUIRED.—^The Secretary of Defense shall perform 
a study of the operational requirements for vessel self-defense for 
the Cyclone class patrol craft and a comparative evaluation of 
the potential means for meeting the operational requirements for 
self-defense of the craft. The study shall consider the range of 
operational scenarios in which the craft is expected to be employed. 
(b) SYSTEMS To BE EVALUATED.—The study under subsection 
(a) shall consider those self-defense systems that could be employed 
aboard the Cyclone class patrol craft, including the Barak ship 
self-defense missile system. 
(c) REPORT.—Not later than March 31, 1997, the Secretary 
shall submit to Congress a report containing the results of the 
study under subsection (a). 
SEC. 224. ONE-YEAR EXTENSION OF DEADLINE FOR DELIVERY OF 
ENHANCED FIBER OPTIC GUIDED MISSILE (EFOG-M) 
SYSTEM. 
Section 272(a)(2) of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 239) is amended 
by striking out "September 30, 1998," and inserting in lieu thereof 
"September 30, 1999,". 
SEC. 
225. 
HYDRA-70 
ROCKET 
PRODUCT 
IMPROVEMENT 
PROGRAM. 
(a) FUNDING AUTHORIZATION.—Of the amount authorized to 
be appropriated under section 201(1) for the Army for Other Missile 
Product Improvement Programs, $9,000,000 is authorized as speci-
fied in subsection (b) for completion of the Hydra-70 product 
improvement program authorized for fiscal year 1996. 
(b) AUTHORIZED ACTIONS.—Funding is authorized to be appro-
priated for the following: 
(1) Procurement for test and flight qualification of at least 
one nondevelopmental item 2.75-inch composite rocket motor 
propellant type, along with other nondevelopmental item can-
didate motors that use composite propellant as the propulsion 
component. 
(2) Platform integration, including additional quantities of 
the motor chosen for operational certification on the Apache 
attack helicopter. 
(c) DEFINITION.—In this section, the term "nondevelopmental 
item" has the meaning provided in section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403). 
SEC. 226. FEDERALLY 
FUNDED 
RESEARCH 
AND 
DEVELOPMENT 
CENTERS. 
(a) CENTERS COVERED.—Funds authorized to be appropriated 
for the Department of Defense for fiscal year 1997 under section 
201 may be obligated to procure work from a federally funded 
research and development center (in this section referred to as 
an "FFRDC") only in the case of a center named in the report 
required by subsection (b) and, in the case of such a center, only 
in an amount not in excess of the amount of the proposed funding 
level set forth for that center in such report. 
(b) REPORT ON ALLOCATIONS FOR CENTERS.—(1) Not later than 
30 days after the date of the enactment of this Act, the Secretary 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2459 
of Defense shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House 
of Representatives a report containing— 
(A) the name of each FFRDC from which work is proposed 
to be procured for the Department of Defense for fiscal year 
1997; 
(B) for each such center, the proposed funding level and 
the estimated personnel level for fiscal year 1997; and 
(C) for each such center, an unambiguous definition of 
the unique core competencies required to be maintained for 
fiscal year 1997. 
(2) The total of the proposed funding levels set forth in the 
report for all FFRDCs may not exceed the amount set forth in 
subsection (d). 
(c) LIMITATION PENDING SUBMISSION OF REPORT.—Not more 
than 15 percent of the funds authorized to be appropriated for 
the Department of Defense for fiscal year 1997 for FFRDCs under 
section 201 may be obligated to procure work from an FFRDC 
until the Secretary of Defense submits the report required by sub-
section (b). 
(d) FUNDING.—(1) Subject to paragraph (2), of the amounts 
authorized to be appropriated by section 201, not more than a 
total of $1,214,650,000 may be obligated to procure services from 
the FFRDCs named in the report required by subsection (b). 
(2) The limitation in paragraph (1) does not apply to funds 
obligated for the procurement of equipment for FFRDCs. 
(e) AUTHORITY TO WAIVE FUNDING LIMITATION.—^The Secretary 
of Defense may waive the limitation regarding the maximum fund-
ing amount that applies under subsection (a) to an FFRDC. When-
ever the Secretary proposes to make such a waiver, the Secretary 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representa-
tives notice of the proposed waiver and the reasons for the waiver. 
The waiver may then be made only after the end of the 60-day 
period that begins on the date on which the notice is submitted 
to those committees, unless the Secretary determines that it is 
essential to the national security that funds be obligated for work 
at that center in excess of that limitation before the end of such 
period and notifies those committees of that determination and 
the reasons for the determination. 
Notice. 
SEC. 227. DEMILITARIZATION 
OF 
CONVENTIONAL 
MUNITIONS, 
ROCKETS, AND EXPLOSIVES. 
(a) ESTABLISHMENT OF CONVENTIONAL MUNITIONS, ROCKETS, 
AND 
EXPLOSIVES DEMILITARIZATION PROGRAM.—^The Secretary of 
Defense shall establish an integrated program for the development 
and demonstration of technologies for the demilitarization and dis-
posal of conventional munitions, rockets, and explosives in a manner 
that complies with applicable environmental laws. 
(b) DURATION OF PROGRAM.—The program established pursuant 
to subsection (a) shall be in effect for a period of at least five 
years, beginning with fiscal year 1997. 
(c) FUNDING.—Of the amount authorized to be appropriated 
in section 201, $15,000,000 is authorized to be appropriated for 
the program established pursuant to subsection (a). The funding 
request for the program shall be set forth separately in the budget 
Effective date. 
110 STAT. 2460 
PUBLIC LAW 104-201—SEPT. 23, 1996 
President. 
justification documents for the budget of the Department of Defense 
for each fiscal year during which the program is in effect. 
(d) REPORTS.—The Secretary of Defense shall submit to Con-
gress a report on the plan for the program established pursuant 
to subsection (a) at the same time the President submits to Congress 
the budget for fiscal year 1998. The Secretary shall submit an 
updated version of such report, setting forth in detail the progress 
of the program, at the same time the President submits the budget 
for each fiscal year after fiscal year 1998 during which the program 
is in effect. 
SEC. 228. RESEARCH ACTIVITIES OF 
THE 
DEFENSE ADVANCED 
RESEARCH PROJECTS AGENCY RELATING TO CHEMICAL 
AND BIOLOGICAL WARFARE DEFENSE TECHNOLOGY. 
(a) AUTHORITY.—Section 1701(c) of the National 
Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 
Stat. 1853; 50 U.S.C. 1522) is amended— 
(1) by inserting "(1)" before "The Secretary"; and 
(2) by adding at the end the following new paragraph: 
"(2) The Director of the Defense Advanced Research Projects 
Agency may conduct a program of basic and applied research and 
advanced technology development on chemical and biological war-
fare defense technologies and systems. In conducting such program, 
the Director shall seek to avoid unnecessary duplication of the 
activities under the program with chemical and biological warfare 
defense activities of the military departments and defense agencies 
and shall coordinate the activities under the program with those 
of the military departments and defense agencies.". 
(b) FUNDING.—Section 1701(d) of such Act is amended— 
(1) in paragraph (1), by striking out "military departments" 
and inserting in lieu thereof "Department of Defense"; 
(2) in paragraph (2), by inserting after "requests for the 
program" in the first sentence the following: "(other than for 
activities under the program conducted by the 
Defense 
Advanced Research Projects Agency under subsection (c)(2))"; 
(3) by redesignating paragraph (3) as paragraph (4); and 
(4) by inserting after paragraph (2) the following new para-
graph (3): 
"(3) The program conducted by the Defense Advanced Research 
Projects Agency under subsection (c)(2) shall be set forth as a 
separate program element in the budget of that agency.". 
SEC. 229. CERTIFICATION OF CAPABILITY OF UNITED STATES TO PRE-
VENT ILLEGAL IMPORTATION OF NUCLEAR, BIOLOGICAL, 
AND CHEMICAL WEAPONS. 
Not later than 15 days after the date of the enactment of 
this Act, the President shall submit to Congress a certification 
in writing stating specifically whether or not the United States 
has the capability (as of the date of the certification) to prevent 
the illegal importation of nuclear, biological, and chemical weapons 
into the United States and its possessions. 
SEC. 230. NONLETHAL WEAPONS AND TECHNOLOGIES PROGRAMS. 
(a) FUNDING.—Of the amount authorized to be appropriated 
under section 201(2), $15,000,000 shall be available for joint service 
research, development, test, and evaluation of nonlethal weapons 
and nonlethal technologies under the program element established 
pursuant to subsection (b). 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2461 
(b) NEW PROGRAM ELEMENT REQUIRED.—The Secretary of 
Defense shall establish a new program element for the funds author-
ized to be appropriated under subsection (a). The funds within 
that program element shall be administered by the executive agent 
designated for joint service research, development, test, and evalua-
tion of nonlethal weapons and nonlethal technologies. 
SEC. 231. COUNTERPROLIFERATION SUPPORT PROGRAM. 
(a) FUNDING.—Of the funds authorized to be appropriated to 
the Department of Defense under section 201(4), $186,200,000 shall 
be available for the Counterproliferation Support Program, of which 
$75,000,000 shall be available for a tactical antisatellite tech-
nologies program. 
(b) ADDITIONAL AUTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) In addition to the transfer authority provided in section 1001, 
upon determination by the Secretary of Defense that such action 
is necessary in the national interest, the Secretary may transfer 
amounts of authorizations made available to the Department of 
Defense in this division for fiscal year 1997 to counterproliferation 
programs, projects, and activities identified as areas for progress 
by the Counterproliferation Program Review Committee established 
by section 1605 of the National Defense Authorization Act for 
Fiscal Year 1994 (22 U.S.C. 2751 note). 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 transferred under the 
authority of this subsection may not exceed $50,000,000. 
(3) The authority provided by this subsection to transfer 
authorizations— 
(A) may only be used to provide authority for items that 
have a higher priority than the items from which authority 
is transferred; and 
(B) may not be used to provide authority for an item 
that has been denied authorization by Congress. 
(4) A transfer made from one account to another under the 
authority of this subsection shall be deemed to increase the amount 
authorized for the account to which the amount is transferred 
by an amount equal to the amount trginsferred. 
(5) The Secretary of Defense shall promptly notify Congress 
Notification. 
of transfers made under the authority of this subsection. 
(c) LIMITATION ON USE OF FUNDS FOR TECHNICAL STUDIES 
AND ANALYSES PENDING RELEASE OF FUNDS.—(1) None of the funds 
authorized to be appropriated to the Department of Defense for 
fiscal year 1997 for program element 605104D, relating to technical 
studies and analyses, may be obligated or expended until the funds 
referred to in paragraph (2) have been released to the program 
manager of the tactical anti-satellite technology program for 
implementation of that program. 
(2) The funds for release referred to in paragraph (1) are 
as follows: 
(A) Funds authorized to be appropriated by section 218(a) 
of the National Defense Authorization Act for Fiscal Year 1996 
(Pubhc Law 104-106; 110 Stat. 222) that are available for 
the program referred to in paragraph (1). 
(B) Funds authorized to be appropriated to the Department 
for fiscal year 1997 by this Act for the Counterproliferation 
110 STAT. 2462 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Support Program that are to be made available for that pro-
gram. 
Subtitle C—Ballistic Missile Defense 
Programs 
SEC. 241. FUNDING FOR BALLISTIC MISSILE DEFENSE 
PROGRAMS 
FOR FISCAL YEAR 1997. 
(a) PROGRAM AMOUNTS.—Of the amount appropriated pursuant 
to section 201(4), the following amounts may be obligated for the 
following systems managed by the Ballistic Missile Defense 
Organization: 
(1) For the Theater High Altitude Area Defense (THAAD) 
System, $621,798,000. 
(2) For the Navy Upper Tier (Theater Wide) system, 
$304,171,000. 
(3) For the National Missile Defense System, $858,437,000. 
(4) For the Corps Surface-to-Air Missile (SAM)/Medium 
Extended Air Defense System (MEADS), $56,200,000. 
Certification. 
(b) LIMITATION.—None of the funds appropriated or otherwise 
made available for the Department of Defense pursuant to this 
or any other Act may be obligated or expended by the Office of 
the Under Secretary of Defense for Acquisition and Technology 
for official representation activities, or related activities, until the 
Secretary of Defense certifies to Congress that— 
(1) the Secretary has made available for obligation the 
funds provided under subsection (a) for the purposes specified 
in that subsection and in the amounts appropriated pursuant 
to that subsection; and 
(2) the Secretary has included the Navy Upper Tier theater 
missile defense system in the theater missile defense core pro-
gram. 
(c) LIMITATIONS.—Not more than $15,000,000 of the amount 
available for the Corps SAM/MEADS program under subsection 
(a) may be obligated until the Secretary of Defense submits to 
the congressional defense committees the following: 
(1) An initial program estimate for the Corps SAM/MEADS 
program, including a tentative schedule of major milestones 
and an estimate of the total program cost through initial oper-
ational capability. 
Reports. 
(2) A report on the options associated with the use of 
existing systems, technologies, and program 
management 
mechanisms to satisfy the requirement for the Corps surface-
to-air missile, including an assessment of cost and schedule 
implications in relation to the program estimate submitted 
under paragraph (1). 
Certification. 
(3) A certification that there will be no increase in overall 
United States funding commitment to the project definition 
and validation phase of the Corps SAM/MEADS program as 
a result of the withdrawal af France from participation in 
the program. 
President. 
SEC. 242. CERTIFICATION OF CAPABILITY OF UNITED STATES TO 
DEFEND AGAINST SINGLE BALLISTIC MISSILE. 
Not later than 15 days after the date of the enactment of 
this Act, the President shall submit to Congress a certification 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2463 
in writing stating specifically whether or not the United States 
has the military capability (as of the time of the certification) 
to intercept and destroy a single ballistic missile launched at the 
territory of the United States. 
SEC. 243. REPORT ON BALLISTIC MISSILE DEFENSE AND PRO-
UFERATION. 
The Secretary of Defense shall submit to Congress a report 
on ballistic missile defense and the proliferation of weapons of 
mass destruction, including nuclear, chemical, and biological weap-
ons, and the missiles that can be used to deliver them. The report 
shall be submitted not later than December 31, 1996, and shall 
include the following: 
(1) An assessment of how United States theater missile 
defenses contribute to United States efforts to prevent prolifera-
tion, including an evaluation of the specific effect United States 
theater missile defense systems can have on dissuading other 
states from acquiring ballistic missiles. 
(2) An assessment of how United States national missile 
defenses contribute to United States efforts to prevent prolifera-
tion. 
(3) An assessment of the effect of the lack of national 
missile defenses on the desire of other states to acquire ballistic 
missiles and an evaluation of the types of missiles other states 
might seek to acquire as a result. 
(4) A detailed review of the linkages between missile 
defenses (both theater and national) and each of the categories 
of counterproliferation activities identified by the Secretary of 
Defense as part of the Defense Counterproliferation Initiative 
announced by the Secretary in December 1993. 
(5) A description of how theater and national ballistic mis-
sile 
defenses 
can 
augment 
the 
effectiveness 
of 
other 
counterproliferation tools. 
SEC. 244. REVISION TO ANNUAL REPORT ON BALLISTIC MISSILE 
DEFENSE PROGRAM. 
Section 224(b) of the National Defense Authorization Act for 
Fiscal Years 1990 and 1991 (10 U.S.C. 2431 note) is amended— 
(1) by striking out paragraphs (3), (4), and (10); 
(2) by redesignating paragraphs (5) and (6) as paragraphs 
(3) and (4), respectively; 
(3) by redesignating paragraph (7) as paragraph (5) and 
in that paragraph by striking out "of the Soviet Union" and 
"for the Soviet Union"; 
(4) by redesignating paragraph (8) as paragraph (6); and 
(5) by redesignating paragraph (9) as paragraph (7) and 
in that paragraph— 
(A) by striking out "of the Soviet Union" in subpara-
graph (A); 
(B) by striking out subparagraphs (C) through (F); 
and 
(C) by redesignating subparagraph (G) as subpara-
graph (C). 
SEC. 245. REPORT ON AIR FORCE NATIONAL MISSILE DEFENSE PLAN. 
Not later than 120 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the Committee 
on Armed Services of the Senate and the Committee on National 
110 STAT. 2464 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Security of the House of Representatives a report on the following 
matters regarding the National Missile Defense Plan of the Air 
Force: 
(1) The cost and operational effectiveness of a system that 
could be developed pursuant to that plan. 
(2) The arms control implications of such a system. 
(3) The growth potential of such a system to meet future 
threats. 
(4) The recommendations of the Secretary for improvements 
to that plan. 
SEC. 246. CAPABILITY OF NATIONAL MISSILE DEFENSE SYSTEM. 
The Secretary of Defense shall ensure that any National Missile 
Defense system deployed by the United States is capable of defeat-
ing the threat posed by the Taepo Dong 11 missile of North Korea. 
SEC. 247. ACTIONS TO LIMIT ADVERSE EFFECTS ON PRIVATE SECTOR 
EMPLOYMENT OF ESTABLISHMENT OF NATIONAL MISSILE 
DEFENSE JOINT PROGRAM OFFICE. 
The Secretary of Defense shall take such actions as are nec-
essary in connection with the establishment of the National Missile 
Defense Joint Program Office within the Ballistic Missile Defense 
Organization to ensure that the establishment of that office does 
not make it necessary for a Federal Government contractor to 
reduce significantly the number of persons employed by that con-
tractor for supporting the national missile defense development 
program at any particular location outside the National Capital 
Region (as defined in section 2674(f)(2) of title 10, United States 
Code). 
SEC. 248. ABM TREATY DEFINED. 
For purposes of this subtitle, the term "ABM Treaty" means 
the Treaty Between the United States of America and the Union 
of Soviet Socialist Republics on the Limitation of Anti-Ballistic 
Missile Systems, and signed at Moscow on May 26, 1972, and 
includes the Protocols to that Treaty, signed at Moscow on 
July 3, 1974. 
Subtitle D—Other Matters 
SEC. 261. MAINTENANCE AND REPAIR AT AIR FORCE INSTALLATIONS. 
(a) ALLOCATION OF FUNDS.—^The Secretary of the Air Force 
shall allocate funds authorized to be appropriated by this title 
and title III of this Act for maintenance and repair of real property 
at military installations of the Department of the Air Force without 
regard to whether the installation is supported with funds author-
ized by this title or title III of this Act. 
(b) MIXING OF FUNDS PROHIBITED ON INDIVIDUAL PROJECTS.— 
The Secretary of the Air Force may not combine funds authorized 
to be appropriated by this title and funds authorized to be appro-
priated by title III for an individual project for maintenance and 
repair of real property at a military installation of the Department 
of the Air Force. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2465 
SEC. 262. REPORT 
RELATING 
TO 
SMALL BUSINESS 
INNOVATION 
RESEARCH PROGRAM. 
Not later than March 30, 1997, the Comptroller General shall 
submit to Congress and to the Secretary of Defense a report setting 
forth the following with respect to the Small Business Innovation 
Research Program (as defined by section 2491(11) of title 10, United 
States Code): 
(1) An assessment of whether there has been a demon-
strable reduction in the quality of research performed under 
funding agreements awarded by the Department of Defense 
under the program since fiscal year 1995. 
(2) An assessment of the degree to which competitive proce-
dures are being followed throughout the military departments 
and defense agencies in awarding funding agreements under 
the program. 
(3) An assessment of the degree to which technologies 
developed through the program are or are likely to be used 
in military projects and programs. 
SEC. 263. AMENDMENT TO UNIVERSITY RESEARCH INITIATIVE SUP-
PORT PROGRAM. 
Section 802(c) of the National Defense Authorization Act for 
Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1701; 10 U.S.C. 
2358 note) is amended by striking out "fiscal years before the 
fiscal year in which the institution submits a proposal" and inserting 
in lieu thereof "most recent fiscal years for which complete statistics 
are available when proposals are requested". 
SEC. 264. AMENDMENTS TO DEFENSE EXPERIMENTAL PROGRAM TO 
STIMULATE COMPETITIVE RESEARCH. 
Section 257(d) of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2705; 10 U.S.C. 
2358 note) is amended— 
(1) in paragraph (1)— 
(A) by striking out "Director of the National Science 
Foundation" and inserting in lieu thereof "Under Secretary 
of Defense for Acquisition and Technology"; and 
(B) by striking out "and shall notify the Director of 
Defense Research and Engineering of the States so des-
ignated"; and 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph (A)— 
(i) by striking out "Director of the National Science 
Foundation" and inserting in lieu thereof "Under Sec-
retary of Defense for Acquisition and Technology"; and 
(ii) by striking out "as determined by the Director" 
and inserting in lieu thereof "as determined by the 
Under Secretary"; 
(B) in subparagraph (A), by striking out "(to be deter-
mined in consultation with the Secretary of Defense);" and 
inserting in lieu thereof "; and"; 
(C) by striking out "; and" at the end of subparagraph 
(B) and inserting in lieu thereof a period; and 
(D) by striking out subparagraph (C). 
110 STAT. 2466 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 265. ELIMINATION OF REPORT ON THE USE OF COMPETITIVE 
PROCEDURES FOR THE AWARD OF CERTAIN CONTRACTS 
TO COLLEGES AND UNIVERSITIES. 
Section 2361 of title 10, United States Code, is amended by 
striking out subsection (c). 
SEC. 266. PILOT PROGRAM FOR TRANSFER 
OF DEFENSE TECH-
NOLOGY INFORMATION TO PRIVATE INDUSTRY. 
(a) PROGRAM REQUIRED.—The Secretary of Defense shall carry 
out a pilot program to demonstrate online transfers of information 
on defense technologies to businesses in the private sector through 
an interactive data network involving Small Business Development 
Centers of institutions of higher education. 
(b) COMPUTERIZED DATA BASE OF DEFENSE TECHNOLOGIES.— 
Contracts. 
(1) Under the pilot program, the Secretary shall enter into an 
agreement with the head of an eligible institution of higher edu-
cation that provides for such institution— 
(A) to develop and maintain a computerized data base 
of information on defense technologies; 
(B) to make such information available online to— 
(i) businesses; and 
(ii) other institutions of higher education entering into 
partnerships with the Secretary under subsection (c). 
(2) The online accessibility may be established by means of 
any of, or any combination of, the following: 
(A) Digital teleconferencing. 
(B) International Signal Digital Network lines. 
(C) Direct modem hookup. 
Contracts. 
(c) PARTNERSHIP NETWORK.—Under the pilot program, the Sec-
retary shall seek to enter into agreements with the heads of several 
eligible institutions of higher education having strong business edu-
cation programs to provide for the institutions of higher education 
entering into such agreements— 
(1) to establish interactive computer links with the data 
base developed and maintained under subsection (b); and 
(2) to assist the Secretary in making information on defense 
technologies available online to the broadest practicable num-
ber, types, and sizes of businesses. 
(d) ELIGIBLE INSTITUTIONS.—^For the purposes of this section, 
an institution of higher education is eligible to enter into an agree-
ment under subsection (b) or (c) if the institution has a Small 
Business Development Center. 
(e) DEFENSE TECHNOLOGIES COVERED.—(1) The Secretary shall 
designate the technologies to be covered by the pilot program from 
among the existing and experimental technologies that the Sec-
retary determines— 
(A) are useful in meeting Department of Defense needs; 
and 
(B) should be made available under the pilot program to 
facilitate the satisfaction of such needs by private sector 
sources. 
(2) Technologies covered by the program should include tech-
nologies useful for defense purposes that can also be used for 
nondefense purposes (with or without modification). 
(f) DEFINITIONS.—In this section: 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2467 
(1) The term "Small Business Development Center" means 
a small business development center established pursuant to 
section 21 of the Small Business Act (15 U.S.C. 648). 
(2) The term "defense technology" means a technology des-
ignated by the Secretary of Defense under subsection (d). 
(3) The term "partnership" means an agreement entered 
into under subsection (c). 
(g) TERMINATION OF PILOT PROGRAM.—^The pilot program shall 
terminate one year after the Secretary enters into an agreement 
under subsection (b). 
(h) 
AUTHORIZATION 
OF 
APPROPRIATIONS.—Of the 
amount 
authorized to be appropriated under section 201(4) for university 
research initiatives, $3,000,000 is available for the pilot program. 
SEC. 267. RESEARCH UNDER TRANSACTIONS OTHER THAN CON-
TRACTS AND GRANTS. 
(a) CONDITIONS FOR USE OF AUTHORITY.—Subsection (e) of sec-
tion 2371 of title 10, United States Code, is amended— 
(1) by redesignating paragraphs (1) and (2) as subpara-
graphs (A) and (B); 
(2) by inserting "and" after the semicolon at the end of 
subparagraph (A), as so redesignated; 
(3) by striking out "; and" at the end of subparagraph 
(B), as so redesignated, and inserting in lieu thereof a period; 
(4) by inserting "(1)" after "(e) CONDITIONS.—"; and 
(5) by striking out paragraph (3) and inserting in lieu 
thereof the following: 
"(2) A cooperative agreement containing a clause under sub-
section (d) or a transaction authorized by subsection (a) may be 
used for a research project when the use of a standard contract, 
grant, or cooperative agreement for such project is not feasible 
or appropriate.". 
(b) REVISED REQUIREMENT FOR ANNUAL REPORT.—Section 2371 
of such title is amended by striking out subsection (h) and inserting 
in lieu thereof the following: 
"(h) ANNUAL REPORT.—(1) Not later than 90 days after the 
end of each fiscal year, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and the Commit-
tee on National Security of the House of Representatives a report 
on the use by the Department of Defense during such fiscal 
year of— 
"(A) cooperative agreements authorized under section 2358 
of this title that contain a clause under subsection (d); and 
"(B) transactions authorized by subsection (a). 
"(2) The report shall include, with respect to the cooperative 
agreements and other transactions covered by the report, the 
following: 
"(A) The technology areas in which research projects were 
conducted under such agreements or other transactions. 
"(B) The extent of the cost-sharing among Federal Govern-
ment and non-Federal sources. 
"(C) The extent to which the use of the cooperative agree-
ments and other transactions— 
"(i) has contributed to a broadening of the technology 
and industrial base available for meeting Department of 
Defense needs; and 
29-194 O - 96 - 24 : QL 3 Part 3 
110 STAT. 2468 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(ii) has fostered within the technology and industrial 
base new relationships sind practices that support the 
national security of the United States. 
"(D) The total amount of payments, if any, that were 
received by the Federal Government during the fiscal year 
covered by the report pursuant to a clause described in sub-
section (d) that was included in the cooperative agreements 
and other transactions, and the amount of such pajonents, 
if any, that were credited to each account established under 
subsection (f).". 
(c) DIVISION OF SECTION INTO DISTINCT PROVISIONS BY SUBJECT 
MATTER.—(1) Chapter 139 of title 10, United States Code, is 
amended— 
(A) by inserting before the last subsection of section 2371 
(relating to cooperative research and development agreements 
under the Stevenson-Wydler Technology Innovation Act of 1980) 
the following: 
*
*
§ 2371a. Cooperative research and development agreements 
under Stevenson-Wydler Technology Innovation 
Act of 1980"; 
(B) in section 2371a (as designated by the amendment 
made by subparagraph (A)), by striking out "(i) COOPERATIVE 
RESEARCH AND DEVELOPMENT AGREEMENTS UNDER STEVENSON-
WYDLER TECHNOLOGY INNOVATION ACT OF 1980.—"; and 
(C) in the table of sections at the beginning of such chapter, 
by inserting after the item relating to section 2371 the follow-
ing: 
"23713. Cooperative research and development agreements under Stevenson-Wydler 
Technology Innovation Act of 1980.". 
(2) Section 2358(d) of such title is amended by striking out 
"section 2371" and inserting in lieu thereof "sections 2371 and 
2371a". 
SEC. 268. DESALTING TECHNOLOGIES. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Access to scarce fresh water is likely to be a cause 
of future military conflicts in the Middle East and has a direct 
impact on stability and security in the region. 
(2) The Middle East is an area of vital and strategic impor-
tance to the United States. 
(3) The United States has played a military role in the 
Middle East, most recently in the Persian Gulf War, and may 
likely be called upon again to deter aggression in the region. 
(4) United States troops have used desalting technologies 
to guarantee the availability of fresh water in past deployments 
in the Middle East. 
(5) Adequate, efficient, and cheap access to high-quality 
fresh water will be vital to maintaining the readiness and 
sustainability of troops of both the United States and its allies. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that, 
as improved access to fresh water will be an important factor 
in helping prevent future conflicts in the Middle East, the United 
States should, in cooperation with its allies, promote and invest 
in technologies to reduce the costs of converting saline water into 
fresh water. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2469 
(c) 
FUNDING 
FOR RESEARCH 
AND DEVELOPMENT.—Of 
the 
amounts authorized to be appropriated by this title, the Secretary 
shall place greater emphasis on making funds available for research 
and development into efficient and economical processes and meth-
ods for converting saline water into fresh water. 
SEC. 269. EVALUATION OF DIGITAL VIDEO NETWORK 
EQUIPMENT 
USED IN OLYMPIC GAMES. 
(a) EVALUATION.—^The Secretary of Defense shall evaluate the 
digital video network equipment used in the 1996 Olympic games 
to determine whether such equipment would be the most appro-
priate equipment for use as a test bed for the military application 
of commercial off-the-shelf advanced technology linking multiple 
continents, multiple satellites, and multiple theaters of operations 
by compressed digital audio and visual broadcasting technology. 
(b) REPORT.—Not later than April 1, 1997, the Secretary of 
Defense shall submit to Congress a report on the results of the 
evaluation conducted under subsection (a). 
SEC. 270. ANNUAL JOINT WARFIGHTING SCIENCE AND TECHNOLOGY 
10 USC 2501 
PLAN. 
^°^-
(a) ANNUAL PLAN REQUIRED.—On March 1 of each year, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a plan for ensuring that the science 
and technology program of the Department of Defense supports 
the development of the future joint warfighting capabilities identi-
fied as priority requirements for the Armed Forces. 
(b) FIRST PLAN.—^The first plan under subsection (a) shall be 
submitted not later than March 1, 1997. 
Subtitle E—National Oceanographic 
Partnership Program 
SEC. 281. FINDINGS. 
10 USC 7901 
Congress finds the following: 
(1) The oceans and coastal areas of the United States 
are among the Nation's most valuable natural resources, mak-
ing substantial contributions to economic growth, quality of 
life, and national security. 
(2) Oceans drive global and regional climate. Hence, they 
contain information affecting agriculture, fishing, and the pre-
diction of severe weather. 
(3) Understanding of the oceans through basic and applied 
research is essential for using the oceans wisely and protecting 
their limited resources. Therefore, the United States should 
maintain its world leadership in oceanography as one key to 
its competitive future. 
(4) Ocean research and education activities take place 
within Federal agencies, academic institutions, and industry. 
These entities often have similar requirements for research 
facilities, data, and other resources (such as oceanographic 
research vessels). 
(5) The need exists for a formal mechanism to coordinate 
existing partnerships and establish new partnerships for the 
sharing of resources, intellectual talent, and facilities in the 
110 STAT. 2470 
PUBLIC LAW 104-201—SEPT. 23, 1996 
ocean sciences and education, so that optimal use can be made 
of this most important natural resource for the well-being of 
all Americans. 
SEC. 282. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM. 
(a) PROGRAM REQUIRED.—(1) Subtitle C of title 10, United 
States Code, is amended by adding after chapter 663 the following 
new chapter: 
"CHAPTER 665—NATIONAL OCEANOGRAPHIC 
PARTNERSHIP PROGRAM 
"Sec. 
"7901. National Oceanographic Partnership Program. 
"7902. National Ocean Research Leadership Council. 
"7903. Ocean Research Advisory Panel. 
''§ 7901. National Oceanographic Partnership Program 
"(a) ESTABLISHMENT.—^The Secretary of the Navy shall establish 
a program to be known as the 'National Oceanographic Partnership 
Program'. 
"(b) PURPOSES.—^The purposes of the program are as follows: 
"(1) To promote the national goals of assuring national 
security, advancing economic development, protecting quality 
of life, and strengthening science education and communication 
through improved knowledge of the ocean. 
"(2) To coordinate and strengthen oceanographic efforts 
in support of those goals by— 
"(A) identifying and carrjdng out partnerships among 
Federal agencies, academia, industry, and other members 
of the oceanographic scientific community in the areas 
of data, resources, education, and communication; and 
"(B) reporting annually to Congress on the program. 
*
*
§ 7902. National Ocean Research Leadership Council 
"(a) COUNCIL.—There is a National Ocean Research Leadership 
Council (hereinafter in this chapter referred to as the 'Council'). 
"(b) MEMBERSHIP.—^The Council is composed of the following 
members: 
"(1) The Secretary of the Navy. 
"(2) The Administrator of the National Oceanic and 
Atmospheric Administration. 
"(3) The Director of the National Science Foundation. 
"(4) The Administrator of the National Aeronautics and 
Space Administration. 
"(5) The Deputy Secretary of Energy. 
"(6) The Administrator of the Environmental Protection 
Agency. 
"(7) The Commandant of the Coast Guard. 
"(8) The Director of the Geological Survey of the Depart-
ment of the Interior. 
"(9) The Director of the Defense Advanced Research 
Projects Agency. 
"(10) The Director of the Minerals Management Service 
of the Department of the Interior. 
"(11) The President of the National Academy of Sciences, 
the President of the National Academy of Engineering, and 
the President of the Institute of Medicine. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2471 
"(12) The Director of the Office of Science and Technology. 
"(13) The Director of the Office of Management and Budget. 
"(14) One member appointed by the chairman from among 
individuals who will represent the views of ocean industries. 
"(15) One member appointed by the chairman from among 
individuals who will represent the views of State governments. 
"(16) One member appointed by the chairman from among 
individuals who will represent the views of academia. 
"(17) One member appointed by the chairman from among 
individuals who will represent such other views as the chairman 
considers appropriate. 
"(c) CHAIRMAN AND VICE CHAIRMAN.—(1) Except as provided 
in paragraph (2), the chairman and vice chairman of the Council 
shall be appointed every two years by a selection committee of 
the Council composed of, at a minimum, the Secretary of the Navy, 
the Administrator of the National Oceanic and Atmospheric 
Administration, and the Director of the National Science Founda-
tion. The term of office of the chairman and vice chairman shall 
be two years. A person who has previously served as chairman 
or vice chairman may be reappointed. 
"(2) The first chairman of the Council shall be the Secretary 
of the Navy. The first vice chairman of the Council shall be the 
Administrator of the National Oceanic and Atmospheric Administra-
tion. 
"(d) TERM OF OFFICE.—The term of office of a member of 
the Council appointed under paragraph (14), (15), (16), or (17) 
of subsection (b) shall be two years, except that any person 
appointed to fill a vacancy occurring before the expiration of the 
term for which his predecessor was appointed shall be appointed 
for the remainder of such term. 
"(e) RESPONSIBILITIES.—^The Council shall have the following 
responsibilities: 
"(1) To prescribe policies and procedures to implement the 
National Oceanographic Partnership Program. 
"(2) To review, select, and identify and allocate funds for 
partnership projects for implementation under the program, 
based on the following criteria: 
"(A) Whether the project addresses critical research 
objectives or operational goals, such as data accessibility 
and quality assurance, sharing of resources, education, or 
communication. 
"(B) Whether the project has, or is designed to have, 
broad participation within the oceanographic community. 
"(C) Whether the partners have a long-term commit-
ment to the objectives of the project. 
"(D) Whether the resources supporting the project are 
shared among the partners. 
"(E) Whether the project has been subjected to ade-
quate peer review. 
"(3) To assess whether there is a need for a facility (or 
facilities) to provide national centralization of oceanographic 
data, and to establish such a facility or facilities if determined 
necessary. In conducting the assessment, the Council shall 
review, at a minimum, the following: 
"(A) The need for a national oceanographic data center. 
"(B) The need for a national coastal data center. 
"(C) Accessibility by potential users of such centers. 
110 STAT. 2472 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Establishment. 
Reports. 
"(D) Preexisting facilities and expertise. 
"(f) ANNUAL REPORT.—Not later than March 1 of each year, 
the Council shall submit to Congress a report on the National 
Oceanographic Partnership Program. The report shall contain the 
following: 
"(1) A description of activities of the program carried out 
during the fiscal year before the fiscal year in which the report 
is prepared, together with a list of the members of the Ocean 
Research Advisory Panel and any working groups in existence 
during the fiscal year covered. 
"(2) A general outline of the activities planned for the 
program during the fiscal year in which the report is prepared. 
"(3) A summary of projects continued from the fiscal year 
before the fiscal year in which the report is prepared and 
projects expected to be started during the fiscal year in which 
the report is prepared and during the following fiscal year. 
"(4) A description of the involvement of the program with 
Federal interagency coordinating entities. 
"(5) The amounts requested, in the budget submitted to 
Congress pursuant to section 1105(a) of title 31, United States 
Code, for the fiscal year following the fiscal year in which 
the report is prepared, for the programs, projects, and activities 
of the program and the estimated expenditures under such 
programs, projects, and activities during such following fiscal 
year. 
"(g) PARTNERSHIP PROGRAM OFFICE.—(1) The Council shall 
establish a partnership program office for the National Oceano-
graphic Partnership Program. The Council shall use competitive 
procedures in selecting an operator for the partnership program 
office. 
"(2) The Council shall assign the following duties to the partner-
ship program office: 
"(A) To establish and oversee working groups to propose 
partnership projects to the Council and advise the Council 
on such projects. 
"(B) To manage the process for proposing partnership 
projects to the Council, including managing peer review of 
such projects. 
"(C) To submit to the Council an annual report on the 
status of all partnership projects and activities of the office. 
"(D) Any additional duties for the administration of the 
National Oceanographic Partnership Program that the Council 
considers appropriate. 
"(3) The Council shall supervise the performance of duties 
by the partnership program office. 
"(h) CONTRACT AND GRANT AUTHORITY.—The Council may 
authorize one or more of the departments or agencies represented 
on the Council to enter into contracts and make grants, using 
funds appropriated pursuant to an authorization of appropriations 
for the National Oceanographic Partnership Program, for the pur-
pose of implementing the program and carrying out the responsibil-
ities of the Council. 
"(i) ESTABLISHMENT AND FORMS OF PARTNERSHIP PROJECTS.— 
(1) A partnership project under the National Oceanographic Part-
nership Program may be established by any instrument that the 
Council considers appropriate, including a memorandum of under-
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2473 
standing, a cooperative research and development agreement, and 
any similar instrument. 
"(2) Projects under the program may include demonstration 
projects. 
"§ 7903. Ocean Research Advisory Panel 
"(a) ESTABLISHMENT.—The Council shall establish an Ocean 
Research Advisory Panel consisting of not less than 10 and not 
more than 18 members appointed by the Council from among per-
sons eminent in the fields of marine science or marine policy, 
or related fields, and who are representative, at a minimum, of 
the interests of government, academia, and industry. 
"(b) 
RESPONSIBILITIES.—^The Council shall assign 
to 
the 
Advisory Panel responsibilities that the Council considers appro-
priate.". 
(2) The table of chapters at the beginning of subtitle C of 
title 10, United States Code, and the table of chapters at the 
beginning of part IV of such subtitle, are each amended by inserting 
after the item relating to chapter 663 the following: 
"665. National Oceanographic Partnership Program 
7901". 
(b) INITIAL APPOINTMENTS OF COUNCIL MEMBERS.—^The Sec- lo use 7902 
retary of the Navy shall make the appointments required by section note. 
7902(b) of title 10, United States Code, as added by subsection 
(a)(1), not later than December 1, 1996. 
(c) INITIAL APPOINTMENTS OF ADVISORY PANEL MEMBERS.— 10 use 7903 
The National Ocean Research Leadership Council established by note, 
section 7902 of title 10, United States Code, as added by subsection 
(a)(1), shall make the appointments required by section 7903 of 
such title not later than January 1, 1997. 
(d) FIRST ANNUAL REPORT OF NATIONAL OCEAN RESEARCH 10 use 7902 
LEADERSHIP COUNCIL.—The first annual report required by section note. 
7902(f) of title 10, United States Code, as added by subsection 
(a)(1), shall be submitted to Congress not later than March 1, 
1997. The first report shall include, in addition to the information 
required by such section, information about the terms of office, 
procedures, and responsibilities of the Ocean Research Advisory 
Panel established by the Council. 
(e) AUTHORIZATION.—(1) Of the amount authorized to be appro-
priated to the Department of the Navy by section 201(2), 
$13,000,000 shall be available for the National Oceanographic Part-
nership Program established pursuant to section 7901 of title 10, 
United States Code, as added by subsection (aXl). 
(2) Of the amount authorized to be appropriated to the Depart-
ment of the Navy by section 301(2), $7,500,000 shall be available 
for such program. 
(f) FUNDING FOR PROGRAM OFFICE.—Of the amount appro-
priated for the National Oceanographic Partnership Program for 
fiscal year 1997, at least $500,000, or 3 percent of the amount 
appropriated, whichever is greater, shall be available for operations 
of the partnership program office established pursuant to section 
7902(g) of title 10, United States Code, as added by subsection 
(a)( 1), for such fiscal year. 
110 STAT. 2474 
PUBLIC LAW 104-201—SEPT. 23, 1996 
TITLE III—OPERATION AND 
MAINTENANCE 
Subtitle A—^Authorization of Appropriations 
Sec. 301. Operation and maintenance funding. 
Sec. 302. Working capital funds. 
Sec. 303. Armed Forces Retirement Home. 
Sec. 304. Transfer from National Defense Stockpile Transaction Fund. 
Sec. 305. Civil Air Patrol Corporation. 
Sec. 306. Availability of additional funds for antiterrorism activities. 
Sec. 307. Nonlethal weapons capabilities. 
Sec. 308. SR-71 contingency reconnaissance force. 
Subtitle B—Depot-Level Activities 
Sec. 311. Extension of authority for aviation depots and naval shipyards to engage 
in defense-related production and services. 
Sec. 312. Test programs for modemization-through-spares. 
Subtitle C—^Environmental Provisions 
Sec. 321. Defense contractors covered by requirement for reports on contractor 
reimbursement costs for response actions. 
Sec. 322. Establishment of separate environmental restoration accounts for each 
military department. 
Sec. 323. Payment of stipulated penalties assessed under CERCLA. 
Sec. 324. Shipboard solid waste control. 
Sec. 325. Autnority to develop and implement land use plans for Defense Environ-
mental Restoration program. 
Sec. 326. Pilot program to test alternative technology for limiting air emissions 
during shipyard blasting and coating operations. 
Sec. 327. Agreements tor services of other agencies in support of environmental 
technology certification. 
Sec. 328. Repeal of redundant notification and consultation requirements regarding 
remedial investigations and feasibility studies at certain installations to 
be closed under the base closvure laws. 
Sec. 329. Authority for agreements with Indian tribes for services under environ-
mental restoration program. 
Sec. 330. Authority to withhold listing of Federal facilities on National Priorities 
List. 
Sec. 331. Clarification of meaning of uncontaminated property for purposes of 
transfer by the United States. 
Sec. 332. Conservation and cultural activities. 
Sec. 333. Navy program to monitor ecological effects of organotin. 
Sec. 334. Authority to transfer contaminated Federal property before completion of 
required response actions. 
Subtitle D—Commissaries and Nonappropriated Fund Instrumentalities 
Sec. 341. Contracts with other agencies to provide or obtain goods and services to 
promote efficient operation and management of exchanges and morale, 
welfare, and recreation activities. 
Sec. 342. Noncompetitive procurement of brand-name commercial items for resale 
in commissary stores. 
Sec. 343. Prohibition of sale or rental of sexually explicit material. 
Subtitle E—^Performance of Functions by Private-Sector Sources 
Sec. 351. Extension of requirement for competitive procurement of printing and 
duplication services. 
Sec. 352. Reporting reqviirements under demonstration project for purchase of fire, 
seciuity, police, pubhc works, and utility services from local government 
agencies. 
Subtitle F—Other Matters 
Sec. 361. Authority for use of appropriated funds for recruiting functions. 
Sec. 362. Training of members of the uniformed services at non-Government 
facilities. 
Sec. 363. Requirement for preparation of plan for improved operation of working-
capital funds and effect of failure to produce an approved plan. 
Sec. 364. Increase in capital asset threshold under Defense Business Operations 
Fund. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2475 
Sec. 365. Expansion of authority to donate unusable food. 
Sec. 366. Assistance to committees involved in inauguration of the President. 
Sec. 367. Department of Defense support for sporting events. 
Sec. 368. Storage of motor vehicle in lieu of transportation. 
Sec. 369. Security protections at Department of Defense facilities in National 
Capital Region. 
Sec. 370. Administration of midshipmen's store and other Naval Academy support 
activities as nonappropriated fund instrumentality. 
Sec. 371. Reimbursement under agreement for instruction of civilian students at 
Foreign Language Institute of the Defense Language Institute. 
Sec. 372. Assistance to local educational agencies that benefit dependents of 
members of the Armed Forces and Department of Defense civilian em-
ployees. 
Sec. 373. Renovation of building for Defense Finance and Accounting Service 
Center, Fort Benjamin Harrison, Indiana. 
Sec. 374. Food donation pilot program at service academies. 
Sec. 375. Authority of Air National Guard to provide certain services at Lincoln 
Municipal Airport, Lincoln, Nebraska. 
Sec. 376. Technical amendment regarding Impact Aid program. 
Subtitle A—^Authorization of 
Appropriations 
SEC. 301. OPERATION AND MAINTENANCE FUNDING. 
Funds are hereby authorized to be appropriated for fiscal year 
1997 for the use of the Armed Forces and other activities and 
agencies of the Department of Defense for expenses, not otherwise 
provided for, for operation and maintenance, in amounts as follows: 
(1) For the Army, $18,264,406,000. 
(2) For the Navy, $20,387,737,000. 
(3) For the Marine Corps, $2,421,007,000. 
(4) For the Air Force, $17,635,335,000. 
(5) For Defense-wide activities, $9,912,962,000. 
(6) For the Army Reserve, $1,136,436,000. 
(7) For the Naval Reserve, $858,927,000. 
(8) For the Marine Corps Reserve, $113,367,000. 
(9) For the Air Force Reserve, $1,499,553,000. 
(10) For the Army National Guard, $2,277,477,000. 
(11) For the Air National Guard, $2,711,173,000. 
(12) For the Defense Inspector General, $136,501,000. 
(13) For the United States Court of Appeals for the Armed 
Forces, $6,797,000. 
(14) For Environmental Restoration, Army, $356,916,000. 
(15) For Environmental Restoration, Navy, $302,900,000. 
(16) 
For 
Environmental 
Restoration, 
Air 
Force, 
$414,700,000. 
(17) 
For 
Environmental 
Restoration, 
Defense-wide, 
$258,500,000. 
(18) For Overseas Humanitarian, Disaster, and Civic Aid 
programs, $54,544,000. 
(19) For Drug Interdiction and Counter-drug Activities, 
Defense-wide, $796,524,000. 
(20) For the Kaho'olawe Island Conveyance, Remediation, 
and Environmental Restoration Trust Fund, $10,000,000. 
(21) For Medical Programs, Defense, $9,833,288,000. 
(22) 
For 
Cooperative 
Threat 
Reduction 
programs, 
$364,900,000. 
(23) For 
Domestic 
Emergency 
Assistance 
programs, 
$97,000,000. 
(24) For OPLAN 34A-35 P.O.W. payments, $20,000,000. 
110 STAT. 2476 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 302. WORKING CAPITAL FUNDS. 
Funds are hereby authorized to be appropriated for fiscal year 
1997 for the use of the Armed Forces and other activities and 
agencies of the Department of Defense for providing capital for 
working capital and revolving funds in amounts as follows: 
(1) 
For 
the 
Defense 
Business 
Operations 
Fund, 
$947,900,000. 
(2) For the National Defense Sealift Fund, $1,118,002,000. 
SEC. 303. ARMED FORCES RETIREMENT HOME. 
There is hereby authorized to be appropriated for fiscal year 
1997 from the Armed Forces Retirement Home Trust Fund the 
sum of $57,300,000 for the operation of the Armed Forces Retire-
ment Home, including the United States Soldiers' and Airmen's 
Home and the Naval Home. 
SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANS-
ACTION FUND. 
(a) TRANSFER AUTHORITY.—To the extent provided in appropria-
tions Acts, not more than $150,000,000 is authorized to be trans-
ferred from the National Defense Stockpile Transaction Fund to 
operation and maintenance accounts for fiscal year 1997 in amounts 
as follows: 
(1) For the Army, $50,000,000. 
(2) For the Navy, $50,000,000. 
(3) For the Air Force, $50,000,000. 
(b) TREATMENT OF TRANSFERS.—^Amounts transferred under 
this section— 
(1) shall be merged with, and be available for the same 
purposes and the same period as, the amounts in the accounts 
to which transferred; and 
(2) may not be expended for an item that has been denied 
authorization of appropriations by Congress. 
(c) RELATIONSHIP TO OTHER TRANSFER AUTHORITY.—^The trans-
fer authority provided in this section is in addition to the transfer 
authority provided in section 1001. 
SEC. 305. CIVIL AIR PATROL CORPORATION. 
(a) FUNDING.—Of the amount authorized to be appropriated 
pursuant to section 301 for operation and maintenance, $14,526,000 
shall be available for the Civil Air Patrol Corporation. 
(b) AMOUNT FOR CERTAIN OPERATIONS.—Of the amount made 
available to the Civil Air Patrol Corporation pursuant to subsection 
(a), not less than 25 percent of such amount shall be reserved 
to cover the costs of search and rescue missions and disaster relief 
missions, 
SEC. 306. AVAILABILITY OF ADDITIONAL FUNDS FOR ANTITERRORISM 
ACTIVITIES. 
Of the amount authorized to be appropriated pursuant to sec-
tion 301 for operation and maintenance, $14,000,000 shall be avail-
able to the Secretary of Defense for activities designed to meet 
the antiterrorism responsibilities of the Department of Defense, 
including activities related to intelligence support, physical security 
measures, and education and training regarding antiterrorism. The 
amount made available by this section is in addition to amounts 
otherwise made available by this Act for antiterrorism activities. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2477 
SEC. 307. NONLETHAL WEAPONS CAPABILITIES. 
Of the amount authorized to be appropriated pursuant to sec-
tion 301, $5,000,000 shall be available for the immediate procure-
ment of nonlethal weapons capabilities to meet existing deficiencies 
in inventories of such capabilities, of which— 
(1) $2,000,000 shall be available for the Army; and 
(2) $3,000,000 shall be available for the Marine Corps. 
SEC. 308. SRr-71 CONTINGENCY RECONNAISSANCE FORCE. 
Of the funds authorized to be appropriated by section 301(4), 
$30,000,000 is authorized to be made available for the SR-71 contin-
gency reconnaissance force. 
Subtitle B—Depot-Level Activities 
SEC. 311. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND 
NAVAL SHIPYARDS TO ENGAGE IN DEFENSE-RELATED 
PRODUCTION AND SERVICES. 
Section 1425(e) of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1684) is amended 
by striking out "September 30, 1996" and inserting in lieu thereof 
"September 30, 1997". 
SEC. 312. TEST PROGRAMS FOR MODERNIZATION-THROUGH-SPARES. 
Reports. 
Not later than 60 days after the date of the enactment of 
this Act, the Secretary of the Army shall submit to the Committee 
on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on the steps 
that the Secretary has taken to ensure that each program included 
in the modemization-through-spares program of the Army is con-
ducted in accordance with— 
(1) the competition requirements in section 2304 of title 
10, United States Code; 
(2) the core logistics requirements in section 2464 of such 
title; 
(3) the public-private competition requirements in section 
2469 of such title; and 
(4) requirements relating to contract bundling and spare 
parts breakout in subsections (a) and (1) of section 15 of the 
Small Business Act (15 U.S.C. 644) and regulations implement-
ing such subsections in the Defense Federal Acquisition Regula-
tion Supplement. 
Subtitle C—Environmental Provisions 
SEC. 321. 
DEFENSE 
CONTRACTORS 
COVERED 
BY 
REQUIREMENT 
FOR 
REPORTS ON CONTRACTOR REIMBURSEMENT COSTS 
FOR 
RESPONSE 
ACTIONS. 
Section 2706(d)(1)(A) of title 10, United States Code, is amended 
by striking out "100" and inserting in lieu thereof "20". 
SEC. 322. ESTABLISHMENT OF SEPARATE ENVIRONMENTAL RESTORA-
TION ACCOUNTS FOR EACH MILITARY DEPARTMENT. 
(a) ESTABLISHMENT.—(1) Section 2703 of title 10, United States 
Code, is amended to read as follows: 
110 STAT. 2478 
PUBLIC LAW 104-201—SEPT. 23, 1996 
President. 
10 use 2703 
note. 
^§ 2703. Environmental restoration accounts 
"(a) ESTABLISHMENT OF ACCOUNTS.—^There are hereby estab-
lished in the Department of Defense the following accounts: 
"(1) An account to be known as the 'Environmental Restora-
tion Account, Defense'. 
"(2) An account to be known as the 'Environmental Restora-
tion Account, Army'. 
"(3) An account to be known as the 'Environmental Restora-
tion Account, Navy'. 
"(4) An account to be known as the 'Environmental Restora-
tion Account, Air Force'. 
"(b) OBLIGATION OF AUTHORIZED AMOUNTS.—Funds authorized 
for deposit in an account under subsection (a) may be obligated 
or expended from the account only in order to carry out the environ-
mental restoration functions of the Secretary of Defense and the 
Secretaries of the military departments under this chapter and 
under any other provision of law. Funds so authorized shall remain 
available until expended. 
"(c) BUDGET REPORTS.—In proposing the budget for any fiscal 
year pursuant to section 1105 of title 31, United States Code, 
the President shall set forth separately the amounts requested 
for environmental restoration programs of the Department of 
Defense and of each of the military departments under this chapter 
and under any other Act. 
"(d) CREDIT OF AMOUNTS RECOVERED.—^The following amounts 
shall be credited to the appropriate environmental restoration 
account: 
"(1) Amounts recovered under CERCLA for response 
actions. 
"(2) Any other amounts recovered from a contractor, 
insurer, surety, or other person to reimburse the Department 
of Defense or a military department for any expenditure for 
environmental response activities. 
"(e) PAYMENTS OF FINES AND PENALTIES.—^None of the funds 
appropriated to the Environmental Restoration Account, Defense, 
for fiscal years 1995 through 1999, or to any environmental restora-
tion account of a military department for fiscal years 1997 through 
1999, may be used for the payment of a fine or penalty (including 
any supplemental environmental project carried out as part of such 
penalty) imposed against the Department of Defense or a military 
department unless the act or omission for which the fine or penalty 
is imposed arises out of an activity funded by the environmental 
restoration account concerned and the payment of the fine or pen-
alty has been specifically authorized by law.". 
(2) The table of sections at the beginning of chapter 160 of 
title 10, United States Code, is amended by striking out the item 
relating to section 2703 and inserting in lieu thereof the following 
new item: 
"2703. Environmental restoration accounts.". 
(b) REFERENCES.—^Any reference to the Defense Environmental 
Restoration Account in any Federal law. Executive Order, regula-
tion, delegation of authority, or document shall be deemed to refer 
to the appropriate environmental restoration account established 
under section 2703(a)(1) of title 10, United States Code (as amended 
by subsection (a)(1)). 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2479 
(c) CONFORMING AMENDMENT.—Section 2705(g)(1) of title 10, 
United States Code, is amended by striking out "the Defense 
Environmental Restoration Account established" and inserting in 
lieu thereof "the environmental restoration account concerned". 
(d) TREATMENT OF UNOBLIGATED BALANCES.—Any unobligated 
lo use 2703 
balances that remain in the Defense Environmental Restoration note. 
Account under section 2703(a) of title 10, United States Code, 
as of the effective date specified in subsection (e) shall be transferred 
on such date to the Environmental Restoration Account, Defense, 
established under section 2703(a)( 1) of title 10, United States Code 
(as amended by subsection (a)( 1)). 
(e) EFFECTIVE DATE.—^The amendments made by this section 
10 use 2703 
shall take effect on the later of— 
™te. 
(l)October 1, 1996;or 
(2) the date of the enactment of this Act. 
SEC. 323. PAYMENTS OF STIPULATED PENALTIES ASSESSED UNDER 
CERCLA-
(a) AUTHORITY.—^The Secretary of Defense may pay the 
following: 
(1) Stipulated civil penalties, to the Hazardous Substance 
Superfund established under section 9507 of the Internal Reve-
nue Code of 1986, in amounts, and using funds, as follows: 
(A) Using funds authorized to be appropriated to the 
Environmental Restoration Account, Army, established 
under section 2703(a)(2) of title 10, United States Code 
(as amended by section 322 of this Act)— 
(i) not more than $34,000 assessed against Fort 
Riley, Kansas, under CERCLA; and 
(ii) not more than $37,500 assessed against Lake 
City 
Army 
Ammunition 
Plant, 
Missouri, 
under 
CERCLA. 
(B) Using funds authorized to be appropriated to the 
Environmental Restoration Account, Navy, established 
under section 2703(a)(3) of that title, as so amended, not 
more than $30,000 assessed against the Naval Education 
and Training Center, Newport, Rhode Island, under 
CERCLA. 
(C) Using funds authorized to be appropriated to the 
Environmental Restoration Account, Air Force, established 
under section 2703(a)(4) of that title, as so amended— 
(i) not more than $55,000 assessed against the 
Massachusetts Military Reservation, Massachusetts, 
under CERCLA; and 
(ii) not more than $10,000 assessed against F.E. 
Warren Air Force Base, Wyoming, under CERCLA. 
(2) Using funds authorized to be appropriated to the 
Environmental Restoration Account, Air Force, established 
under section 2703(a)(4) of that title, as so amended, not more 
than $500,000 to carry out one environmental restoration 
project, as part of a negotiated agreement in lieu of stipulated 
penalties assessed under CERCLA against the Massachusetts 
Military Reservation, Massachusetts. 
(b) CERCLA DEFINED.—In this section, the term "CERCLA" 
means the Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980 (42 U.S.C. 9601 et seq.). 
110 STAT. 2480 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Applicability. 
Regulations. 
Federal Register, 
publication. 
Applicability. 
Effective date. 
Termination 
date. 
Federal Register, 
publication. 
10 u s e 2706 
note. 
SEC. 324. SHIPBOARD SOLID WASTE CONTROL. 
(a) IN GENERAL.—Section 3(c) of the Act to Prevent Pollution 
from Ships (33 U.S.C. 1902(c)) is amended— 
(1) in paragraph (1), by striking out "Not later than" and 
inserting in lieu thereof "Except as provided in paragraphs 
(2) and (3), not later than"; and 
(2) by striking out paragraphs (2), (3), and (4) and inserting 
in lieu thereof the following: 
"(2)(A) Subject to subparagraph (B), any ship described in 
subparagraph (C) may discharge, without regard to the special 
area requirements of Regulation 5 of Annex V to the Convention, 
the following non-plastic, non-floating garbage: 
"(i) A slurry of seawater, paper, cardboard, or food waste 
that is capable of passing through a screen with openings 
no larger than 12 millimeters in diameter. 
"(ii) Metal and glass that have been shredded and bagged 
so as to ensure negative buoyancy. 
"(B)(i) Garbage described in subparagraph (A)(i) may not be 
discharged within 3 nautical miles of land. 
"(ii) Garbage described in subparagraph (A)(ii) may not be 
discharged within 12 nautical miles of land. 
"(C) This paragraph applies to any ship that is owned or oper-
ated by the Department of the Navy that, as determined by the 
Secretary of the Navy— 
"(i) has unique military design, construction, manning, or 
operating requirements; and 
"(ii) cannot fully comply with the special area requirements 
of Regulation 5 of Annex V to the Convention because compli-
ance is not technologically feasible or would impair the oper-
ations or operational capability of the ship. 
"(3)(A) Not later than December 31, 2000, the Secretary of 
the Navy shall prescribe and publish in the Federal Register stand-
ards to ensure that each ship described in subparagraph (B) is, 
to the maximum extent practicable without impairing the operations 
or operational capabilities of the ship, operated in a manner that 
is consistent with the special area requirements of Regulation 5 
of Annex V to the Convention. 
"(B) Subparagraph (A) applies to surface ships that are owned 
or operated by the Department of the Navy that the Secretary 
plans to decommission during the period beginning on January 
1, 2001, and ending on December 31, 2005. 
"(C) At the same time that the Secretary publishes standards 
under subparagraph (A), the Secretary shall publish in the Federal 
Register a list of the ships covered by subparagraph (B).". 
(b) SENSE OF CONGRESS.—(1) It is the sense of Congress that 
it should be an objective of the Navy to achieve full complisince 
with Annex V to the Convention as part of the Nav5r's development 
of ships that are environmentally sound. 
(2) In this subsection, the terms "Convention" and "ship" have 
the meanings given such terms in section 2(a) of the Act to Prevent 
Pollution from Ships (33 U.S.C. 1901(a)). 
(c) REPORT ON COMPLIANCE WITH ANNEX V TO THE CONVEN-
TION.—^The Secretary of Defense shall include in each report on 
environmental compliance activities submitted to Congress under 
section 2706(b) of title 10, United States Code, the following 
information: 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2481 
(1) A list of the ship types, if any, for which the Secretary 
of the Navy has made the determination referred to in para-
graph (2)(C) of section 3(c) of the Act to Prevent Pollution 
from Ships, as amended by subsection (a)(2) of this section. 
-
(2) A list of ship types which the Secretary of the Navy 
has determined can comply with Regulation 5 of Annex V 
to the Convention. 
(3) A summary of the progress made by the Navy in 
implementing the requirements of paragraphs (2) and (3) of 
such section 3(c), as so amended. 
(4) A description of any emerging technologies offering 
the potential to achieve full compliance with Regulation 5 of 
Annex V to the Convention. 
(5) The amount and nature of the discharges in special 
areas, not otherwise authorized under the Act to Prevent Pollu-
tion from Ships (33 U.S.C. 1901 et seq.), during the preceding 
year from ships referred to in section 3(b)(1)(A) of such Act 
owned or operated by the Department of the Navy. 
(d) 
PUBLICATION REGARDING SPECIAL AREA DISCHARGES.— 
Subparagraph (A) of section 3(e)(4) of the Act to Prevent Pollution 
from Ships (33 U.S.C. 1902(e)(4)) is amended to read as follows: 
"(A) Each year, the amount and nature of the dis-
charges in special areas, not otherwise authorized under 
this Act, during the preceding year from ships referred 
to in subsection (b)(1)(A) of this section owned or operated 
by the Department of the Navy.". 
SEC. 325. AUTHORITY TO DEVELOP AND IMPLEMENT LAND USE 
10 USC 2701 
PLANS FOR DEFENSE ENVIRONMENTAL RESTORATION 
note. 
PROGRAM. 
(a) AUTHORITY.—The Secretary of Defense may, to the extent 
possible and practical, develop and implement, as part of the 
Defense Environmental Restoration Program provided for in chapter 
160 of title 10, United States Code, a land use plan for any defense 
site selected by the Secretary under subsection (b). 
(b) SELECTION OF SITES.—^The Secretary may select up to 10 
defense sites, from among sites where the Secretary is planning 
or implementing environmental restoration activities, for which land 
use plans may be developed under this section. 
(c) REQUIREMENT TO CONSULT WITH REVIEW COMMITTEE OR 
ADVISORY BOARD.—In developing a land use plan under this section, 
the Secretary shall consult with a technical review committee estab-
lished pursuant to section 2705(c) of title 10, United States Code, 
a restoration advisory board established pursuant to section 2705(d) 
of such title, a local land use redevelopment authority, or another 
appropriate State agency. 
(d) 50-YEAR PLANNING PERIOD.—^A land use plan developed 
under this section shall cover a period of at least 50 years. 
(e) IMPLEMENTATION.—For each defense site for which the Sec-
retary develops a land use plan under this section, the Secretary 
shall take into account the land use plan in selecting and 
implementing, in accordance with applicable law, environmental 
restoration activities at the site. 
(f) DEADLINES.—For each defense site for which the Secretary 
intends to develop a land use plan under this section, the Secretary 
shall develop a draft land use plan by October 1, 1997, and a 
final land use plan by March 15, 1998. 
110 STAT. 2482 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Notification. 
(g) DEFINITION OF DEFENSE SITE.—For purposes of this section, 
the term "defense site" means (A) any building, structure, installa-
tion, equipment, pipe or pipeline (including any pipe into a sewer 
or publicly owned treatment works), well, pit, pond, lagoon, 
impoundment, ditch, landfill, storage container, motor vehicle, roll-
ing stock, or aircraft under the jurisdiction of the Department 
of Defense, or (B) any site or area under the jurisdiction of the 
Department of Defense where a hazardous substance has been 
deposited, stored, disposed of, or placed, or otherwise come to be 
located; but does not include any consumer product in consumer 
use or any vessel. 
(h) REPORT.—In the annual report required under section 
2706(a) of title 10, United States Code, the Secretary shall include 
information on the land use plans developed under this section 
and the effect such plans have had on environmental restoration 
activities at the defense sites where they have been implemented. 
The annual report submitted in 1999 shall include recommendations 
on whether such land use plans should be developed and imple-
mented throughout the Department of Defense. 
(i) SAVINGS PROVISIONS.—(1) Nothing in this section, or in 
a land use plan developed under this section with respect to a 
defense site, shall be construed as requiring any modification to 
a land use plan that was developed before the date of the enactment 
of this Act. 
(2) Nothing in this section may be construed to affect statutory 
requirements for an environmental restoration or waste manage-
ment activity or project or to modify or otherwise affect applicable 
statutory or regulatory environmental restoration and waste 
management 
requirements, 
including 
substantive 
standards 
intended to protect public health and the environment, nor shall 
anjrthing in this section be construed to preempt or impair any 
local land use planning or zoning authority or State authority. 
SEC. 326. PILOT PROGRAM TO TEST ALTERNATIVE TECHNOLOGY FOR 
LIMITING AIR EMISSIONS DURING SHIPYARD BLASTING 
AND COATING OPERATIONS. 
(a) DETERMINATION BY SECRETARY OF THE NAVY.—(1) The Sec-
retary of the Navy shall make a determination whether the alter-
native technology described in paragraph (2) has the clear potential 
for significant benefit to the Navy. The Secretary shall submit 
to Congress a notification in writing of the determination not later 
than 60 days after the date of the enactment of this Act. 
(2) The technology referred to in paragraph (1) is an alternative 
technology designed to capture and destroy or remove particulate 
emissions and volatile air pollutants that occur during abrasive 
blasting and coating operations at naval shipyards. 
(b) PILOT PROGRAM.—If the determination made under sub-
section (a)(1) is in the affirmative, the Secretary shall establish 
a pilot program to test the alternative technology. In conducting 
the test, the Secretary shall seek to demonstrate whether the tech-
nology is valid, cost effective, and in compliance with environmental 
laws and regulations. 
(c) REPORT.—^Upon completion of the test conducted under the 
pilot program, the Secretary shall submit to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report setting forth 
in detail the results of the test. The report shall include 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2483 
recommendations on whether the alternative technology merits 
implementation at naval shipyards and such other recommenda-
tions as the Secretary considers appropriate. 
SEC. 327. AGREEMENTS FOR SERVICES OF OTHER AGENCIES IN SUP- 
10 USC 2702 
PORT OF ENVIRONMENTAL TECHNOLOGY CERTIFICATION, 
note. 
(a) AUTHORITY.—Subject to subsection (b), the Secretary of 
Defense may enter into a cooperative agreement with an agency 
of a State or local government to obtain assistance in certifying 
environmental technologies. 
(b) LIMITATIONS.—The Secretary of Defense may enter into 
a cooperative agreement with respect to an environmental tech-
nology under subsection (a) only if the Secretary determines— 
(1) that the technology has clear potential to be of signifi-
cant value to the Department of Defense in carrying out its 
environmental restoration activities; and 
(2) that there is no reasonably available market in the 
private sector for the technology without a certification by 
the Department of Defense, the Environmental Protection 
Agency, or a State environmental agency. 
(c) TYPES OF ASSISTANCE.— The types of assistance that may 
be obtained under subsection (a) include the following: 
(1) Data collection and analysis. 
(2) Technical assistance in conducting a demonstration of 
an environmental technology, including the implementation of 
quality assurance and quality control programs. 
(d) REPORT.—In the annual report required under section 
2706(a) of title 10, United States Code, the Secretary of Defense 
shall include the following information with respect to cooperative 
agreements entered into under this section: 
(1) The number of such agreements. 
(2) The number of States in which such agreements have 
been entered into. 
(3) A description of the nature of the technology involved 
in each such agreement. 
(4) The amount of funds obligated or expended by the 
Department of Defense for each such agreement during the 
year covered by the report. 
(e) TERMINATION OF AUTHORITY.—^The authority provided under 
subsection (a) shall terminate five years after the date of the enact-
ment of this Act. 
SEC. 328. REPEAL 
OF 
REDUNDANT 
NOTIFICATION 
AND 
CONSULTATION REQUIREMENTS REGARDING REMEDIAL 
INVESTIGATIONS AND FEASIBILITY STUDIES AT CERTAIN 
INSTALLATIONS TO BE CLOSED UNDER THE BASE CLO-
SURE LAWS. 
Section 334 of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1340; 10 
U.S.C. 2687 note) is repealed. 
SEC. 329. AUTHORITY FOR AGREEMENTS WITH INDIAN TRIBES FOR 
SERVICES UNDER ENVIRONMENTAL RESTORATION PRO-
GRAM. 
Section 2701(d) of title 10, United States Code, is amended— 
(1) in the first sentence of paragraph (1), by striking out 
", or with any State or local government agency," and inserting 
110 STAT. 2484 
PUBLIC LAW 104-201—SEPT. 23, 1996 
in lieu thereof ", with any State or local government agency, 
or with any Indian tribe,"; and 
(2) by adding at the end the following: 
"(3) DEFINITION.—In this subsection, the term Indian tribe' 
has the meaning given such term in section 101(36) of the 
Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9601(36)).". 
SEC. 330. AUTHORITY TO WITHHOLD LISTING OF FEDERAL FACILI-
TIES ON NATIONAL PRIORITIES LIST. 
Section 120(d) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(d)) is 
amended— 
(1) by redesignating paragraphs (1) and (2) as subpara-
graphs (A) and (B), respectively; 
(2) by striking out "Not later than 18 months after the 
enactment of the Superfund Amendments and Reauthorization 
Act of 1986, the Administrator" and inserting in lieu thereof 
the following: 
"(1) IN GENERAL.—^The Administrator"; 
(3) by moving the remainder of the text of paragraph 
(1), as designated by paragraph (2) of this section (including 
subparagraphs (A) and (B), as redesignated by paragraph (1) 
of this section) 2 ems to the right; and 
(4) by striking out "Such criteria" and all that follows 
through the end of the subsection and inserting in lieu thereof 
the following: 
"(2) APPLICATION OF CRITERIA.— 
"(A) IN GENERAL.—Subject to subparagraph (B), the 
criteria referred to in paragraph (1) shall be applied in 
the same manner as the criteria are applied to facilities 
that are owned or operated by persons other than the 
United States. 
"(B) RESPONSE UNDER OTHER LAW.—It shall be an 
appropriate factor to be taken into consideration for the 
purposes of section 105(a)(8)(A) that the head of the depart-
ment, agency, or instrumentality that owns or operates 
a facility has arranged with the Administrator or appro-
priate State authorities to respond appropriately, under 
authority of a law other than this Act, to a release or 
threatened release of a hazardous substance. 
"(3) COMPLETION.—Evaluation and listing under this sub-
section shall be completed in accordance with a reasonable 
schedule established by the Administrator.". 
SEC. 331. CLARIFICATION OF MEANING OF UNCONTAMINATED PROP-
ERTY FOR PURPOSES OF TRANSFER BY THE UNITED 
STATES. 
Section 120(h)(4)(A) of the Comprehensive 
Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
9620(h)(4)(A)) is amended in the first sentence by striking out 
"stored for one year or more, known to have been released," and 
inserting in lieu thereof "known to have been released". 
SEC. 332. CONSERVATION AND CULTURAL ACTIVITIES. 
(a) IN GENERAL.—(1) Chapter 159 of title 10, United States 
Code, is amended by adding at the end the following new section: 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2485 
'*§ 2694. Conservation and cultural activities 
"(a) ESTABLISHMENT.—The Secretary of Defense may establish 
and carry out a program to conduct and manage in a coordinated 
manner the conservation and cultural activities described in sub-
section (b). 
"(b) ACTIVITIES.—(1) A conservation or cultural activity eligible 
for the program that the Secretary establishes under subsection 
(a) is any activity— 
"(A) that has regional or Department of Defense-wide 
significance and that involves more than one military depart-
ment; 
"(B) that is necessary to meet legal requirements or to 
support military operations; 
"(C) that can be more effectively managed at the Depart-
ment of Defense level; and 
"(D) for which no executive ageny has been designated 
responsible by the Secretary. 
"(2) Such activities include the following: 
"(A) The development of ecosystem-wide land management 
plans. 
"(B) The conduct of wildlife studies to ensure the safety 
of military operations. 
"(C) The identification and return of Native American 
human remains and cultural items in the possession or control 
of the Department of Defense, or discovered on land under 
the jurisdiction of the Department, to the appropriate Native 
American tribes. 
"(D) The control of invasive species that may hinder mili-
tary activities or degrade military training ranges. 
"(E) The establishment of a regional curation system for 
artifacts found on military installations. 
"(c) COOPERATIVE AGREEMENTS.—The Secretary may negotiate 
and enter into cooperative agreements with public and private 
agencies, organizations, institutions, individuals, or other entities 
to carry out the program established under subsection (a). 
"(d) EFFECT ON OTHER LAWS.—Nothing in this section shall 
be construed or interpreted as preempting any otherwise applicable 
Federal, State, or local law or regulation relating to the manage-
ment of natural and cultural resources on military installations.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"2694. Conservation and culturjil activities.". 
(b) EFFECTIVE DATE.—Section 2694 of title 10, United States 
lo use 2694 
Code, as added by subsection (a), shall take effect on October note. 
1, 1996. 
SEC. 333. NAVY PROGRAM TO MONITOR ECOLOGICAL EFFECTS OF Water. 
ORGANOTIN. 
33 USC 2406 
(a) MONITORING REQUIREMENT.—The Secretary of the Navy 
shall, in consultation with the Administrator of the Environmental 
Protection Agency, develop and implement a program to monitor 
the concentrations of organotin in the water column, sediments, 
and aquatic organisms of representative estuaries and near-coastal 
waters in the United States, as described in section 7(a) of the 
Organotin Antifouling Paint Control Act of 1988 (33 U.S.C. 2406(a)). 
The program shall be designed to produce high-quality data to 
note. 
110 STAT. 2486 
PUBLIC LAW 104-201—SEPT. 23, 1996 
enable the Environmental Protection Agency to develop water qual-
ity criteria concerning organotin compounds. 
(b) FUNDING.—^The Administrator of the Environmental Protec-
tion Agency shall provide, in advance, such sums as are necessary 
to the Secretary of the Navy for the costs of developing and 
implementing the program under subsection (a). 
(c) WRITTEN AGREEMENT.—The Secretary of the Navy and the 
Administrator of the Environmental Protection Agency shall enter 
into a written agreement setting forth the actions that the Secretary 
plans to take under subsection (a) and the funding that the Adminis-
Notification. 
trator agrees to provide under subsection (b). If the Secretary deter-
mines that the Administrator will not enter into such an agreement, 
the Secretary shall notify the Committee on National Security of 
the House of Representatives £ind the Committee on Armed Services 
of the Senate not later than 30 days after such determination. 
(d) NONIMPAIRMENT OF MISSION.—Compliance with subsection 
(a) shall be conducted in such a manner so as not to impair the 
ability of the Department of the Navy to meet its operational 
requirements. 
(e) REPORT.—Not later than June 1, 1997, the Secretary of 
the Navy shall submit to Congress a report containing the following: 
(1) A description of the monitoring program developed 
pursuant to subsection (a). 
(2) An analysis of the results of the monitoring program 
as of the date of the submission of the report. 
(3) Information about the progress of Navy programs, 
referred to in section 7(c) of the Organotin Antifouling Paint 
Control Act of 1988 (33 U.S.C. 2406(c)), for evaluating the 
laboratory toxicity and environmental risks associated with 
the use of antifouling paints containing organotin. 
(4) An assessment, developed in consultation with the 
Administrator of the Environmental Protection Agency, of the 
effectiveness of existing laws and rules concerning organotin 
compounds in ensuring protection of human health and the 
environment. 
(f) SENSE OF CONGRESS.—(1) It is the sense of Congress that 
the Administrator of the Environmental Protection Agency, in con-
sultation with the Secretary of the Navy, should develop, for pur-
poses of the national pollutant discharge elimination system, a 
model permit for the discharge of organotin compounds at shipbuild-
ing and ship repair facilities. 
(2) For purposes of this subsection, the term "organotin" has 
the meaning provided in section 3 of the Organotin Antifouling 
Paint Control Act of 1988 (33 U.S.C. 2402). 
(g) TERMINATION.—The program required by subsection (a) shall 
terminate five years after the date of the enactment of this Act. 
SEC. 334. AUTHORITY TO TRANSFER CONTAMINATED FEDERAL PROP-
ERTY BEFORE COMPLETION OF REQUIRED RESPONSE 
ACTIONS. 
(a) IN GENERAL.—Section 120(h)(3) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 
(42 U.S.C. 9620(h)(3)) is amended— 
(1) by redesignating subparagraph (A) as clause (i) and 
clauses (i), (ii), and (iii) of that subparagraph as subclauses 
(I), (II), and (III), respectively; 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2487 
(2) by striking out "After the last day" and inserting in 
lieu thereof the following: 
"(A) IN GENERAL.—After the last day"; 
(3) by redesignating subparagraph (B) as clause (ii) and 
clauses (i) and (ii) of that subparagraph as subclauses (I) and 
(II), respectively; 
(4) by redesignating subparagraph (C) as clause (iii); 
(5) by moving the remainder of the text of subparagraph 
(A), as designated by paragraph (2) of this subsection (including 
the clauses and subclauses redesignated by paragraphs (1), 
(3), and (4) of this subsection) 2 ems to the right; 
(6) by striking "For purposes of subparagraph (B)(i)" and 
inserting the following: 
"(B) COVENANT REQUIREMENTS.—For purposes of sub-
paragraphs (A)(ii)(I) and (C)(iii)"; 
(7) in subparagraph (B), as designated by paragraph (5), 
by striking "subparagraph (B)" each place it appears and insert-
ing "subparagraph (A)(ii)"; and 
(8) by adding at the end the following: 
"(C) DEFERRAL.— 
"(i) IN GENERAL.—^The Administrator, with the 
concurrence of the Governor of the State in which 
the facility is located (in the case of real property 
at a Federal facility that is listed on the National 
Priorities List), or the Governor of the State in which 
the facility is located (in the case of real property 
at a Federal facility not listed on the National Priorities 
List) may defer the requirement of subparagraph 
(A)(ii)(I) with respect to the property if the Adminis-
trator or the Governor, as the case may be, determines 
that the property is suitable for transfer, based on 
a finding that— 
"(I) the property is suitable for transfer for 
the use intended by the transferee, and the 
intended use is consistent with protection of 
human health and the environment; 
"(II) the deed or other agreement proposed 
to govern the transfer between the United States 
and the transferee of the property contains the 
assurances set forth in clause (ii); 
"(III) the Federal agency requesting deferral 
has provided notice, by publication in a newspaper 
of general circulation in the vicinity of the prop-
erty, of the proposed transfer and of the oppor-
tunity for the public to submit, within a period 
of not less than 30 days Eifter the date of the 
notice, written comments on the suitability of the 
property for transfer; and 
"(IV) the deferral and the transfer of the prop-
erty will not substantially delay any necessary 
response action at the property, 
"(ii) RESPONSE ACTION ASSURANCES.—With regard 
to a release or threatened release of a hazardous sub-
stance for which a Federal agency is potentially respon-
sible under this section, the deed or other agreement 
proposed to govern the transfer shall contain assur-
ances that— 
110 STAT. 2488 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(I) provide for any necessary restrictions on 
the use of the property to ensure the protection 
of human health and the environment; 
"(11) provide that there will be restrictions on 
use necessary to ensure that required remedial 
investigations, response action, and 
oversight 
activities will not be disrupted; 
"(III) provide that all necessary response 
action will be taken and identify the schedules 
for investigation and completion of all necessary 
response action as approved by the appropriate 
regulatory agency; and 
"(IV) provide that the Federal agency respon-
sible for the property subject to transfer will sub-
mit a budget request to the Director of the Office 
of Management 
and Budget that 
adequately 
addresses schedules for investigation and comple-
tion of all necessary response action, subject to 
congressional authorizations and appropriations, 
"(iii) WARRANTY.—^When all response action nec-
essary to protect humsm health and the environment 
with respect to any substance remaining on the prop-
erty on the date of transfer has been taken, the United 
States shall execute and deliver to the transferee an 
appropriate document containing a warranty that all 
such response action has been taken, and the making 
of the warranty shall be considered to satisfy the 
requirement of subparagraph (A)(ii)(I). 
"(iv) FEDERAL RESPONSIBILITY.—A deferral under 
this subparagraph shall not increase, diminish, or 
affect in any manner any rights or obligations of a 
Federal agency (including any rights or obligations 
under sections 106, 107, and 120 existing prior to 
transfer) with respect to a property transferred under 
this subparagraph.". 
(b) CONTINUED APPLICATION OF STATE LAW.—The first sentence 
of section 120(a)(4) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(a)(4)) 
is amended by inserting "or facilities that are the subject of a 
deferral under subsection (h)(3)(C)" after "United States". 
Subtitle D—Commissaries and 
Nonappropriated Fund Instrumentalities 
SEC. 341. CONTRACTS 
WITH OTHER AGENCIES 
TO PROVIDE OR 
OBTAIN GOODS AND SERVICES TO PROMOTE EFFICIENT 
OPERATION AND MANAGEMENT 
OF EXCHANGES 
AND 
MORALE, WELFARE, AND RECREATION ACTIVITIES. 
(a) 
CONTRACTS 
TO 
PROMOTE 
EFFICIENT 
OPERATION AND 
MANAGEMENT.—(1) Chapter 147 of title 10, United States Code, 
is amended by inserting after section 2482 the following new section: 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2489 
*
*
§ 2482a. Nonappropriated fund instrumentalities: contracts 
with other agencies and instrumentalities to pro-
vide and obtain goods and services 
"An agency or instrumentality of the Department of Defense 
that supports the operation of the exchange system, or the operation 
of a morale, welfare, and recreation system, of the Department 
of Defense may enter into a contract or other agreement with 
another element of the Department of Defense or with another 
Federal department, agency, or instrumentality to provide or obtain 
goods and services beneficial to the efficient management and oper-
ation of the exchange system or that morale, welfare, and recreation 
system.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2482 
the following new item: 
"2482a. Nonappropriated fund instrumentalities: contracts with other agencies and 
instrumentalities to provide and obtain goods and services.". 
(b) CONFORMING AMENDMENT REGARDING COMMISSARY SYS-
TEM.—Section 2482(b)(1) of such title is amended by striking out 
"another department" and all that follows through "provide services" 
and inserting in lieu thereof "another element of the Department 
of Defense or with another Federal department, agency, or 
instrumentality to provide or obtain services". 
SEC. 342. NONCOMPETITIVE 
PROCUREMENT 
OF 
BRAND-NAME 
COMMERCIAL ITEMS FOR RESALE IN COMMISSARY 
STORES. 
(a) CLARIFICATION OF EXCEPTION TO COMPETITIVE PROCURE-
MENT.—Section 2486 of title 10, United States Code, is amended 
by adding at the end the following new subsection: 
"(e) The Secretary of Defense may not use the exception pro-
vided in section 2304(c)(5) of this title regarding the procurement 
of a brand-name commercial item for resale in commissary stores 
unless the commercial item is regularly sold outside of commissary 
stores under the same brand name as the name by which the 
commercial item will be sold in commissary stores.". 
(b) EFFECT ON EXISTING CONTRACTS OR OTHER AGREEMENTS.— 
lo use 2486 
Section 2486(e) of title 10, United States Code, as added by sub- note, 
section (a), shall not affect the terms, conditions, or duration of 
any contract or other agreement entered into by the Secretary 
of Defense before the date of the enactment of this Act for the 
procurement of commercial items for resale in commissary stores. 
SEC. 343. PROfflBITION OF SALE OR RENTAL OF SEXUALLY EXPLICIT 
MATERIAL. 
(a) IN GENERAL.—(1) Chapter 147 of title 10, United States 
Code, is amended by inserting after section 2489 the following 
new section: 
^§ 2489a. Sale or rental of sexually explicit material pro-
hibited 
"(a) 
PROHIBITION OF SALE OR RENTAL.—The Secretary of 
Defense may not permit the sale or rental of sexually explicit 
material on property under the jurisdiction of the Department of 
Defense. 
110 STAT. 2490 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(b) PROHIBITION OF OFFICIALLY PROVIDED SEXUALLY EXPLICIT 
MATERIAL.—^A member of the armed forces or a civilian officer 
or employee of the Department of Defense acting in an official 
capacity may not provide for sale, remuneration, or rental sexually 
explicit material to another person. 
"(c) REGULATIONS.—The Secretary of Defense shall prescribe 
regulations to implement this section. 
"(d) DEFINITIONS.—In this section: 
"(1) The term 'sexually explicit material' means an audio 
recording, a film or video recording, or a periodical with visual 
depictions, produced in any medium, the dominant theme of 
which depicts or describes nudity, including sexual or excretory 
activities or organs, in a lascivious way. 
"(2) The term 'property under the jurisdiction of the Depart-
ment of Defense' includes commissaries, all facilities operated 
by the Army and Air Force Exchange Service, the Navy 
Exchange Service Command, the Navy Resale and Services 
Support Office, Marine Corps exchanges, and ships' stores.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2489 
the following new item: 
"2489a. Sale or rental of sexually explicit material prohibited.". 
10 use 2489a 
(b) EFFECTIVE DATE.—Subsection (a) of section 2489a of title 
note. 
10, IJnited States Code, as added by subsection (a) of this section, 
shall take effect 90 davs after the date of the enactment of this 
Act. 
Subtitle E—Performance of Functions by 
Private-Sector Sources 
SEC. 351. EXTENSION 
OF 
REQUIREMENT 
FOR 
COMPETITIVE 
PROCUREMENT OF PRINTING AND DUPLICATION SERV-
ICES. 
(a) EXTENSION.—Section 351(a) of the National 
Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 266) is amended by striking out "fiscal year 1996" and insert-
ing in lieu thereof "fiscal years 1996 and 1997". 
(b) 
REPORTING 
REQUIREMENTS.—Such 
section 
is 
further 
amended by adding at the end the following new subsection: 
"(c) REPORTING REQUIREMENTS.—(1) Not later than 90 days 
after the end of each fiscal year in which the requirement of 
subsection (a) applies, the Secretary of Defense shall submit to 
Congress a report— 
"(A) describing the extent of the compliance of the Secretary 
with the requirement during that fiscal year; 
"(B) specifying the total volume of printing and duplication 
services procured by the Department of Defense during that 
fiscal year— 
"(i) from sources within the Department of Defense; 
"(ii) from private-sector sources; and 
"(iii) from other sources in the Federal Govern-
ment; and 
"(C) specifying the total volume of printed and duplicated 
material during that fiscal year covered by the exception in 
subsection (b). 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2491 
"(2) The report required for fiscal year 1996 shall also include 
the plans of the Secretary for further implementation of the require-
ment of subsection (a) during fiscal year 1997.". 
SEC. 352. REPORTING 
REQUIREMENTS 
UNDER 
DEMONSTRATION 
PROJECT FOR PURCHASE OF FIRE, SECURITY, POLICE, 
PUBLIC WORKS, AND UTILITY SERVICES FROM LOCAL 
GOVERNMENT AGENCIES. 
Section 816(b) of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2820) is amended 
by striking out ", 1996" and inserting in lieu thereof "of each 
of the years 1997 and 1998". 
Subtitle F—Other Matters 
SEC. 361. AUTHORITY 
FOR USE OF APPROPRIATED 
FUNDS FOR 
RECRUITING FUNCTIONS. 
(a) AUTHORITY.—Chapter 31 of title 10, United States Code, 
is amended by adding at the end the following new section: 
*
*
§ 520c. Recruiting functions: use of funds 
"(a) PROVISION OF MEALS AND REFRESHMENTS.—^Under regula- Regulations, 
tions prescribed by the Secretary concerned, funds appropriated 
to the Department of Defense for recruitment of military personnel 
may be expended for small meals and refreshments during recruit-
ing functions for the following persons: 
"(1) Persons who have enlisted under the Delayed Entry 
Program authorized by section 513 of this title. 
"(2) Persons who are objects of armed forces recruiting 
efforts. 
"(3) Persons whose assistance in recruiting efforts of the 
military departments is determined to be influential by the 
Secretary concerned. 
"(4) Members of the armed forces and Federal employees 
when attending recruiting events in accordance with a require-
ment to do so. 
"(5) Other persons whose presence at recruiting efforts 
will contribute to recruiting efforts. 
"(b) ANNUAL REPORT.—Not later than February 1 of each of 
the years 1998 through 2002, the Secretary of Defense shall submit 
to Congress a report on the extent to which the authority under 
subsection (a) was exercised during the fiscal year ending in the 
preceding year. 
"(c) TERMINATION OF AUTHORITY.—The authority in subsection 
(a) may not be exercised after September 30, 2001.". 
(b) CLERICAL AMENDMENT.—^The table of sections at the begin-
ning of such chapter is amended by adding at the end the following 
new item: 
"520c. Recruiting functions: use of funds.". 
SEC. 362. TRAINING OF MEMBERS OF THE UNIFORMED SERVICES AT 
NON-GOVERNMENT FACILITIES. 
(a) AUTHORITY TO ENTER INTO AGREEMENTS FOR TRAINING AT 
NON-GOVERNMENT FACILITIES.—(1) Chapter 101 of title 10, United 
States Code, is amended by adding at the end the following new 
section: 
110 STAT, 2492 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"§ 2013. Training at non-Government facilities 
"(a) AUTHORITY To ENTER INTO AGREEMENTS.—(1) The Sec-
retary concerned, without regard to section 3709 of the Revised 
Statutes (41 U.S.C. 5), may make agreements or other arrangements 
for the training of members of the uniformed services under the 
jurisdiction of that Secretary by, in, or through non-Government 
facilities. 
"(2) In this section, the term 'non-Government faciUty' means 
any of the following: 
"(A) The government of a State or of a territory or posses-
sion of the United States, including the Commonwealth of 
Puerto Rico, an interstate governmental organization, and a 
unit, subdivision, or instrumentality of any of the foregoing. 
"(B) A foreign government or international organization, 
or instrumentality of either, which is designated by the Presi-
dent as eligible to provide training under this section. 
"(C) A medical, scientific, technical, educational, research, 
or professional institution, foundation, or organization. 
"(D) A business, commercial, or industrial firm, corporation, 
partnership, proprietorship, or other organization. 
"(E) Individuals other than civilian or military personnel 
of the Government. 
"(F) The services and property of any of the foregoing 
providing the training. 
"(b) EXPENSES.—^The Secretary concerned, from appropriations 
or other funds available to the Secretary, may— 
"(1) pay all or a part of the pay of a member of a uniformed 
service who is selected and assigned for training under this 
section, for the period of training; and 
"(2) pay, or reimburse the member of a uniformed service 
for, all or a part of the necessary expenses of the training 
(without regard to subsections (a) and (b) of section 3324 of 
title 31), including among those expenses the necessary costs 
of the following: 
"(A) Travel and per diem instead of subsistence under 
sections 404 and 405 of title 37 and the Joint Travel 
Regulations for the Uniformed Services. 
"(B) Transportation of immediate family, household 
goods and personal effects, packing, crating, temporarily 
storing, draying, and unpacking under sections 406 and 
409 of title 37 and the Joint Travel Regulations for the 
Uniformed Services when the estimated costs of transpor-
tation and related services are less than the estimated 
aggregate per diem payments for the period of training. 
"(C) Tuition and matriculation fees. 
"(D) Library and laboratory services. 
"(E) Purchase or rental of books, materials, and 
supplies. 
"(F) Other services or facilities directly related to the 
training of the member. 
"(c) CERTAIN EXPENSES ExCLUDED.^The expenses of training 
do not include membership fees except to the extent that the fee 
is a necessary cost directly related to the training itself or that 
payment of the fee is a condition precedent to undergoing the 
training.". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2493 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"2013. Training at non-Government facilities.". 
(b) EFFECTIVE DATE.—Section 2013 of title 10, United States 
10USC2013 
Code, as added by subsection (a), shall take effect on October note. 
1, 1996. 
SEC. 363. REQUIREMENT FOR PREPARATION OF PLAN FOR IMPROVED 
10 USC 2216a 
OPERATION OF WORKING-CAPITAL FUNDS AND EFFECT OF note. 
FAILURE TO PRODUCE AN APPROVED PLAN. 
(a) 
PLAN FOR IMPROVED 
OPERATION OF WORKING-CAPITAL 
FUNDS.—^Not later than September 30, 1997, the Secretary of 
Defense shall submit to Congress a plan to improve the manage-
ment and performance of the industrial, commercial, and support 
type activities of the military departments or the Defense Agencies 
that are currently managed through the Defense Business Oper-
ations Fund. 
(b) ELEMENTS OF PLAN.—^The plan required by subsection (a) 
shall address the following issues: 
(1) The ability of each military department or Defense 
Agency to set working capital requirements and set charges 
at its own industrial and supply activities. 
(2) The desirability of separate business accounts for the 
management of both industrial and supply activities for each 
military department or Defense Agency. 
(3) Liability for operation losses at industrial and supply 
activities. 
(4) Reimbursement to the Department of Defense by each 
military department or Defense Agency of its fair share of 
the costs of legitimate common business support services (such 
as accounting and financial services and central logistics serv-
ices) provided by the Department of Defense. 
(5) The role of the Department of Defense in setting charges 
or imposing surcharges for activities managed by the business 
accounts of a military department or Defense Agency (except 
for the common business support cost described in paragraph 
(4)), and what such charges should properly reflect. 
(6) The appropriate use of operating profits arising from 
the operations of the industrial and supply activities of a mili-
tary department or Defense Agency. 
(7) The ability of a military department or Defense Agency 
to purchase industrial and supply services from, and provide 
such services to, other military departments or Defense Agen-
cies. 
(8) Standardization of financial management and account-
ing practices employed by the business accounts of a military 
department or Defense Agency. 
(9) Reporting requirements related to actual and projected 
performance of business management account activities of a 
military department or Defense Agency. 
(c) EFFECT OF FAILURE TO SUBMIT OR APPROVE OF PLAN.— lo use 2216a. 
(1) Unless, before October 1, 1999, the Secretary of Defense submits 
the plan required by subsection (a) and Congress enacts a provision 
of law described in paragraph (2) that approves of the plan as 
submitted or in an amended form, then section 2216a of title 
10, United States Code, regarding the Defense Business Operations 
110 STAT. 2494 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Fund (as redesignated by section 1074(a)(10) of this Act), shall 
be repealed effective as of that date. 
(2) The provision of law referred to in paragraph (1) is a 
provision of law that— 
(A) is enacted after the submission of the plan required 
by subsection (a); 
(B) specifically refers to the plan and this section; and 
(C) specifically states that the plan required by subsection 
(a) is approved as submitted or with such amendments as 
may be contained in such law. 
(d) BASIS FOR CHARGES FOR GOODS AND SERVICES; COMPTROL-
LER GENERAL REVIEW.—(1) In the development of the proposed 
budget for the Defense Business Operations Fund for a fiscal year, 
the Secretary of Defense shall ensure that accurate and realistic 
pricing and quantity estimates are used regarding the goods and 
services to be provided by working-capital funds and industrial, 
commercial, and support type activities managed through the Fund. 
(2) The Secretary of Defense shall make available to the 
Comptroller General information used to establish the charges for 
goods and services to be provided by working-capital funds and 
industrial, commercial, and support type activities 
managed 
through the Fund. The Comptroller General shall conduct an annual 
Reports. 
review of the adequacy of the basis for the charges. Not later 
than 30 days after the date on which the Secretary submits the 
annual report and proposed budget for the Fund under subsection 
(h) of section 2216a of title 10, United States Code, as redesignated 
by section 1074(a)(10) of this Act, the Comptroller General shall 
submit to Congress a report containing the results of the review. 
SEC. 364. INCREASE IN CAPITAL ASSET THRESHOLD UNDER DEFENSE 
BUSINESS OPERATIONS FUND. 
Section 2216a of title 10, United States Code, as redesignated 
by section 1074(a)(10) of this Act, is amended in subsection (i)(l) 
by striking out "$50,000" and inserting in lieu thereof "$100,000". 
SEC. 365. EXPANSION OF AUTHORITY TO DONATE UNUSABLE FOOD. 
(a) AUTHORITY FOR DONATIONS FROM DEFENSE AGENCIES.— 
Section 2485 of title 10, United States Code, is amended by striking 
out "Secretary of a military department" in subsections (a) and 
(b) and inserting in lieu thereof "Secretary of Defense". 
(b) EXPANSION OF ELIGIBLE RECIPIENTS.—Such section is fur-
ther amended— 
(1) in subsection (a), by striking out "authorized charitable 
nonprofit food banks" and inserting in lieu thereof "entities 
specified under subsection (d)"; and 
(2) in subsection (d), by striking out "may only be made" 
and all that follows and inserting in lieu thereof the following: 
"may only be made to an entity that is one of the following: 
"(1) A charitable nonprofit food bank that is designated 
r 
by the Secretary of Defense or the Secretary of Health and 
Human Services as authorized to receive such donations. 
"(2) A State or local agency that is designated by the 
Secretary of Defense or the Secretary of Health and Human 
Services as authorized to receive such donations. 
"(3) A chapter or other local unit of a recognized national 
veterans organization that provides services to persons without 
adequate shelter and is designated by the Secretary of Veterans 
Affairs as authorized to receive such donations. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2495 
"(4) A not-for-profit organization that provides care for 
homeless veterans and is designated by the Secretary of Veter-
ans Affairs as authorized to receive such donations.". 
(c) CLARIFICATION OF FOOD THAT MAY BE DONATED.—Sub-
section (b) of such section is further amended by inserting "rations 
known as humanitarian daily rations (HDRs)," after "(MREs),". 
SEC. 366. ASSISTANCE TO COMMITTEES INVOLVED IN INAUGURATION 
OF THE PRESIDENT. 
(a) IN GENERAL.—Section 2543 of title 10, United States Code, 
is amended to read as follows: 
'^§2543. Equipment and services: Presidential 
inaugural 
ceremonies 
"(a) ASSISTANCE AUTHORIZED.—^The Secretary of Defense may, 
with 
respect 
to the ceremonies 
relating 
to the 
inaugu-
ration of a President, provide the assistance referred to in subsection 
(b)to— 
"(1) the Presidential Inaugural Committee; and 
"(2) the congressional Joint Inaugural Committee. 
"(b) ASSISTANCE.—^Assistance that may be provided under sub-
section (a) is the following: 
"(1) Planning and carrying out activities relating to security 
and safety. 
"(2) Plsmning and carrying out ceremonial activities. 
"(3) Loan of property. 
"(4) Any other assistance that the Secretary considers 
appropriate. 
"(c) REIMBURSEMENT.—(1) The Presidential Inaugural Commit-
tee shall reimburse the Secretary for any costs incurred in connec-
tion with the provision to the committee of assistance referred 
to in subsection (b)(4). 
"(2) Costs reimbursed under paragraph (1) shall be credited 
to the appropriations from which the costs were paid. The amount 
credited to an appropriation shall be proportionate to the amount 
of the costs charged to that appropriation. 
"(d) LOANED PROPERTY.—^With respect to property loaned for 
a presidential inauguration under subsection (b)(3), the Presidential 
Inaugural Committee shall— 
"(1) return that property within nine days after the date 
of the ceremony inaugurating the President; 
"(2) give good and sufficient bond for the return in good 
order and condition of that property; 
"(3) indemnify the United States for any loss of, or damage 
to, that property; and 
"(4) defray any expense incurred for the delivery, return, 
rehabilitation, replacement, or operation of that property. 
"(e) DEFINITIONS.—In this section: 
"(1) The term 'Presidential Inaugural Committee' means 
the committee referred to in subsection (b)(2) of the first section 
of the Presidential Inaugural Ceremonies Act (36 U.S.C. 721) 
that is appointed with respect to the inauguration of a Presi-
dent-elect and Vice President-elect. 
"(2) The term 'congressional Joint Inaugural Committee' 
means the joint committee of the Senate and House of Rep-
resentatives referred to in the proviso in section 9 of the Presi-
dential Inaugural Ceremonies Act (36 U.S.C. 729) that is 
110 STAT. 2496 
PUBLIC LAW 104-201—SEPT. 23, 1996 
appointed with respect to the inauguration of a President-
elect and Vice President-elect.", 
(b) CLERICAL AMENDMENT.—The item relating to section 2543 
in the table of sections at the beginning of chapter 152 of such 
title is amended to read as follows: 
"2543. Equipment and services: Presidential inaugural ceremonies.". 
SEC. 
367. 
DEPARTMENT OF DEFENSE SUPPORT FOR SPORTING 
EVENTS. 
(a) AUTHORITY To PROVIDE SUPPORT.—Subchapter II of chapter 
152 of title 10, United States Code, is amended by adding at 
the end the following new section: 
"§ 2554. Provision of support for certain sporting events 
"(a) SECURITY AND SAFETY ASSISTANCE.—At the request of a 
Federal, State, or local government agency responsible for providing 
law enforcement services, security services, or safety services, the 
Secretary of Defense mav authorize the commander of a military 
installation or other facility of the Department of Defense or the 
commander of a specified or unified combatant commsind to provide 
assistance for the World Cup Soccer Games, the Goodwill Games, 
the Ol3rmpics, and any other civilian sporting event in support 
of essential security and safety at such event, but only if the 
Attorney General certifies that such assistance is necessary to meet 
essential security and safety needs. 
"(b) OTHER ASSISTANCE.—The Secretary of Defense may author-
ize a commander referred to in subsection (a) to provide assistance 
for a sporting event referred to in that subsection in support of 
other needs relating to such event, but only— 
"(1) to the extent that such needs cannot reasonably be 
met by a source other than the Department; 
"(2) to the extent that the provision of such assistance 
does not adversely affect the military preparedness of the armed 
forces; and 
"(3) if the organization requesting such assistance agrees 
to reimburse the Department for amounts expended by the 
Department in providing the assistance in accordance with 
the provisions of section 377 of this title and other applicable 
provisions of law. 
"(c) INAPPLICABILITY TO CERTAIN EVENTS.—Subsections (a) and 
(b) do not apply to the following sporting events: 
"(1) Sporting events for which funds have been appro-
priated before the date of the enactment of this Act. 
"(2) The Special Olympics. 
"(3) The Paralympics. 
"(d) TERMS AND CONDITIONS.—^The Secretary of Defense may 
require such terms and conditions in connection with the provision 
of assistance under this section as the Secretary considers necessary 
and appropriate to protect the interests of the United States. 
"(e) REPORT ON ASSISTANCE.—Not later than January 30 of 
each year following a year in which the Secretary of Defense pro-
vides assistance under this section, the Secretary shall submit 
to Congress a report on the assistance provided. The report shall 
set forth— 
"(1) a description of the assistance provided; 
"(2) the amount expended by the Department in providing 
the assistance; 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2497 
"(3) if the assistance was provided under subsection (a), 
the certification of the Attorney Greneral with respect to the 
assistance under that subsection; and 
"(4) if the assistance was provided under subsection (b)— 
"(A) an explanation why the assistance could not 
reasonably be met by a source other than the Department; 
and 
"(B) the amount the Department was reimbursed under 
that subsection. 
"(f) RELATIONSHIP TO OTHER LAWS.—^Assistance provided under 
this section shall be subject to the provisions of sections 375 and 
376 of this title.". 
(b) CLERICAL AMENDMENT.—^The table of sections at the begin-
ning of such subchapter is amended by adding at the end the 
following new item: 
"2554. Provision of support for certain sporting events.". 
SEC. 368. STORAGE OF MOTOR VEHICLE IN LIEU OF TRANSPORTATION. 
(a) STORAGE AUTHORIZED.—(1) Section 2634 of title 10, United 
States Code, is amended— 
(A) by redesignating subsection (b) as subsection (g); 
(B) by transferring subsection (g), as so redesignated, to 
the end of such section; and 
(C) by inserting after subsection (a) the following new 
subsection: 
"(b)(1) In lieu of transportation authorized by this section, 
if a member is ordered to make a change of permanent station 
to a foreign country and the laws, regulations, or other restrictions 
imposed by the foreign country or the United States preclude entry 
of a motor vehicle described in subsection (a) into that country, 
or would require extensive modification of the vehicle as a condition 
to entry, the member may elect to have the vehicle stored at 
the expense of the United States at a location approved by the 
Secretary concerned. 
"(2) If a member is transferred or assigned in connection with 
a contingency operation to duty at a location other than the perma-
nent station of the member for a period of more than 30 consecutive 
days, but the transfer or assignment is not considered a change 
of permanent station, the member may elect to have a motor vehicle 
described in subsection (a) stored at the expense of the United 
States at a location approved by the Secretary concerned. 
"(3) Authorized expenses under this subsection include costs 
associated with the delivery of the motor vehicle for storage and 
removal of the vehicle for delivery to a destination approved by 
the Secretary concerned.". 
(2)(A) The heading of such section is amended to read as 
follows: 
110 STAT. 2498 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"§2634. Motor vehicles: transportation or storage for mem-
bers on change of permanent station or extended 
deployment". 
(B) The item relating to such section in the table of sections 
at the beginning of chapter 157 of title 10, United States Code, 
is amended to read as follows: 
"2634. Motor vehicles: transportation or storage for members on change of perma-
nent station or extended deployment.". 
(b) CONFORMING AMENDMENT.—Subparagraph (B) of section 
406(h)(1) of title 37, United States Code, is amended to read as 
follows: 
"(B) in the case of a member described in paragraph (2)(A), 
authorize the transportation of one motor vehicle, which is 
owned or leased by the member (or a dependent of the member) 
and is for the personal use of a dependent of the member, 
to that location by means of transportation authorized under 
section 2634 of title 10 or authorize the storage of the motor 
vehicle pursuant to subsection (b) of such section.". 
10 use 2634 
(c) EFFECTIVE DATE.—The amendments made by this section 
note. 
shall take effect on April 1, 1997. 
SEC. 369. SECURITY PROTECTIONS AT DEPARTMENT OF DEFENSE 
FACILITIES IN NATIONAL CAPITAL REGION. 
(a) EXPANSION OF AUTHORITY.—Subsection (b) of section 2674 
of title 10, United States Code, is amended by striking out "at 
the Pentagon Reservation" and inserting in lieu thereof "in the 
National Capital Region". 
(b) CLERICAL AMENDMENTS.—(1) The heading of such section 
is amended to read as follows: 
*
*
§ 2674. Operation and control of Pentagon Reservation and 
defense facilities in National Capital Region". 
(2) The item relating to such section in the table of sections 
at the beginning of chapter 159 of such title is amended to read 
as follows: 
"2674. Operation and control of Pentagon Reservation and defense facilities in Na-
tional Capital Region.". 
SEC. 370. ADMINISTRATION OF MIDSHIPMEN'S STORE AND OTHER 
NAVAL ACADEMY SUPPORT ACTIVITIES AS NONAPPRO-
PRIATED FUND INSTRUMENTALITY. 
(a) IN GENERAL.—Section 6971 of title 10, United States Code, 
is amended to read as follows: 
"§6971. Midshipmen's store, trade shops, dairy, and laun-
dry: nonappropriated fund instrumentality and 
accounts 
"(a) 
OPERATION AS NONAPPROPRIATED FUND INSTRUMENTAL-
ITY.—The Superintendent of the Naval Academy shall operate the 
Naval Academy activities referred to in subsection (b) as a non-
appropriated fund instrumentality under the jurisdiction of the 
Navy. 
"(b) 
COVERED 
ACTIVITIES.—The 
nonappropriated 
fund 
instrumentality required under subsection (a) shall consist of the 
following Naval Academy activities: 
"(1) The midshipmen's store. 
"(2) The barber shop. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2499 
"(3) The cobbler shop. 
"(4) The tailor shop. 
"(5) The dairy. 
"(6) The laundry. 
"(c) NONAPPROPRIATED FUND ACCOUNTS.—The Superintendent 
of the Naval Academy shall administer a separate nonappropriated 
fund account for each of the Naval Academy activities included 
in the nonappropriated fund instrumentality required under sub-
section (a). 
"(d) CREDITING OF REVENUE.—The Superintendent shall credit 
all revenue received from a Naval Academy activity referred to 
in subsection (b) to the account administered with respect to that 
activity under subsection (c), and amounts so credited shall be 
available for operating expenses of that activity. 
"(e) REGULATIONS.—^This section shall be carried out under 
regulations prescribed by the Secretary of the Navy.". 
(b) CIVIL SERVICE EMPLOYMENT STATUS OF EMPLOYEES OF COV-
ERED ACTIVITIES.—Section 2105(b) of title 5, United States Code, 
is amended— 
(1) by inserting "who is" after "An individual"; and 
(2) by inserting "and whose emplo3anent in such a position 
began before October 1, 1996, and has been uninterrupted 
in such a position since that date" after "Academy dairy,". 
(c) CONFORMING REPEAL.—Section 6970 of title 10, United 
States Code, is repealed. 
(d) CLERICAL AMENDMENTS.—The table of sections at the begin-
ning of chapter 603 of title 10, United States Code, is amended 
by striking out the items relating to sections 6970 and 6971 and 
inserting in lieu thereof the following new item: 
"6971. Midshipmen's store, trade shops, dairy, and laundry: nonappropriated fund 
instrumentality and accounts.". 
(e) EFFECTIVE DATE.—^The amendments made by this section 
5 USC 2105 note, 
shall take effect on October 1, 1996. 
SEC. 371. REIMBURSEMENT UNDER AGREEMENT FOR INSTRUCTION 
OF 
CIVILIAN 
STUDENTS 
AT 
FOREIGN 
LANGUAGE 
INSTITUTE OF THE DEFENSE LANGUAGE INSTITUTE. 
(a) AUTHORITY TO ACCEPT REIMBURSEMENT IN KIND.—Section 
559(a)( 1) of the National Defense Authorization Act for Fiscal Year 
1995 (PubHc Law 103-337; 108 Stat. 2776; 10 U.S.C. 4411 note) 
is amended— 
(1) by redesignating subsections (c), (d), and (e) as sub-
sections (d), (e), and (f), respectively; and 
(2) by inserting after subsection (b) the following new sub-
section: 
"(c) REIMBURSEMENT OPTIONS FOR CERTAIN INSTRUCTION.—In 
the case of instruction provided to students described in subsection 
(a)(1), the Secretary may provide the instruction on a cost-reimburs-
able basis, a reimbursement-in-kind basis, or a combination of 
both options. Regardless of the reimbursement option, the value 
of the reimbursement received under this subsection may not be 
less than the amount charged for providing language instruction 
to Federal employees who are not Department of Defense employees. 
The Secretary may not delegate the authority to accept an offer 
for in-kind reimbursement below the level of the Assistant Secretary 
of the Army.". 
29-194 O - 96 - 25 : QL 3 Part 3 
110 STAT. 2500 
PUBLIC LAW 104-201—SEPT. 23, 1996 
.„ 
(b) 
CONFORMING 
AMENDMENTS.—Such 
section 
is 
further 
amended— 
(1) in subsection (a)(1), by striking out "cost-reimburs-
able,"; and 
(2) in subsection (d), as redesignated by subsection (a)(1) 
of this section, by striking out "subsection (a)" the first place 
it appears and inserting in lieu thereof "subsection (a) or (c)". 
SEC. 372. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT 
BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
FORCES 
AND DEPARTMENT OF 
DEFENSE 
CIVILIAN 
EMPLOYEES. 
(a) CONTINUATION OF DEPARTMENT OF DEFENSE PROGRAM FOR 
FISCAL YEAR 1997.—Of the amounts authorized to be appropriated 
in section 301(5)— 
(1) $30,000,000 shall be available for providing educational 
agencies assistance (as defined in subsection (d)(1)) to local 
educational agencies; and 
(2) $5,000,000 shall be available for making educational 
agencies payments (as defined in subsection (d)(2)) to local 
educational agencies. 
(b) NOTIFICATION.—Not later than June 30, 1997, the Secretary 
of Defense shall— 
(1) notify each local educational agency that is eligible 
for educational agencies assistance for fiscal year 1997 of that 
agency's eligibility for such assistance and the amount of such 
assistance for which that agency is eligible; and 
(2) notify each local educational agency that is eligible 
for an educational agencies payment for fiscal year 1997 of 
that agency's eligibility for such pajonent and the amount of 
the payment for which that agency is eligible. 
(c) DISBURSEMENT OF FUNDS.—^The Secretary of Defense shall 
disburse funds made available under paragraphs (1) and (2) of 
subsection (a) not later than 30 days after the date on which 
notification to the eligible local educational agencies is provided 
pursuant to subsection (b). 
(d) DEFINITIONS.—In this section: 
(1) The term "educational agencies assistance" means 
assistance authorized under section 386(b) of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 
102-484; 20 U.S.C. 7703 note). 
(2) The term "educational agencies payments" means pay-
ments authorized under section 386(d) of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 
20 U.S.C. 7703 note). 
(3) The term "local educational agency" has the meaning 
given that term in section 8013(9) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7713(9)). 
SEC. 373. RENOVATION OF BUILDING FOR DEFENSE FINANCE AND 
ACCOUNTING 
SERVICE 
CENTER, 
FORT 
BENJAMIN 
HARRISON, INDIANA. 
(a) TRANSFER AUTHORITY.—^To pay the costs of planning, design, 
and renovation of Building One, Fort Benjamin Harrison, Indiana, 
for use as a Defense Finance and Accounting Service Center, the 
Secretary of Defense may transfer to the Administrator of General 
Services in the manner provided in subsection (b) funds available 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2501 
to the Department of Defense for the Defense Finance and Account-
ing Service for a fiscal year for operation and maintenance. 
(b) AUTHORITY SUBJECT TO AUTHORIZATIONS AND APPROPRIA-
TIONS.—To the extent provided in appropriations Acts— 
(1) of funds described in subsection (a) and appropriated 
for fiscal year 1997, $9,000,000 may be transferred under such 
subsection; and 
(2) of funds described in subsection (a) and appropriated 
for fiscal years 1998, 1999, 2000, and 2001, funds may be 
transferred under such subsection in such amounts as are 
authorized to be transferred in an Act enacted after the date 
of the enactment of this Act. 
(c) AUTHORITY SUBJECT TO AGREEMENT BETWEEN DEPARTMENT EfTective date. 
OF DEFENSE AND GENERAL SERVICES ADMINISTRATION.—^The trans-
fer authority provided in subsection (a) shall not take effect until 
the date on which the Secretary of Defense and the Administrator 
of General Services enter into an agreement that provides for the 
Department of Defense to receive a full reimbursement for the 
funds transferred under such subsection. Such reimbursement may 
include reimbursement in the form of reduced or static rental 
rates for Building One. 
SEC. 374. FOOD DONATION PILOT PROGRAM AT SERVICE ACADEMIES. 
(a) PROGRAM AUTHORIZED.—^The Secretaries of the military 
departments and the Secretary of Transportation may each carry 
out a food donation pilot program at the service academy under 
the jurisdiction of such Secretary. 
(b) DONATIONS AND COLLECTIONS OF FOOD AND GROCERY PROD-
UCTS.—^Under the pilot program, the Secretary concerned may 
donate to, and permit others to collect for, a nonprofit organization 
any food or grocery product that— 
(Dis— 
(A) an apparently wholesome food; 
(B) an apparently fit grocery product; or 
(C) a food or grocery product that is donated in accord-
ance with section 402(e) of the National and Community 
Service Act of 1990 (42 U.S.C. 12672(e)); 
(2) is owned by the United States; 
(3) is located at a service academy under the jurisdiction 
of such Secretary; and 
(4) is excess to the requirements of the academy. 
(c) PROGRAM COMMENCEMENT.—The Secretary concerned shall 
commence carrying out the pilot program, if at all, during fiscal 
year 1997. 
(d) APPLICABILITY OF GOOD SAMARITAN FOOD DONATION ACT.— 
Section 402 of the National and Community Service Act of 1990 
(42 U.S.C. 12672) shall apply to donations and collections of food 
and grocery products under the pilot program without regard to 
section 403 of such Act (42 U.S.C. 12673). 
(e) REPORTS.—(1) Each Secretary that carries out a pilot pro-
gram at a service academy under this section shall submit to 
Congress an interim report and a final report on the pilot program. 
(2) The Secretary concerned shall submit the interim report 
not later than one year after the date on which the Secretary 
commences the pilot program at a service academy. 
110 STAT. 2502 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(3) The Secretary concerned shall submit the final report not 
later than 90 days after the Secretary completes the pilot program 
at a service academy. 
(4) Each report shall include the following: 
(A) A description of the conduct of the pilot program. 
(B) A discussion of the experience under the pilot program. 
(C) An evaluation of the extent to which section 402 of 
the National and Community Service Act of 1990 (42 U.S.C. 
12672) has been effective in protecting the United States and 
others from liabilities associated with actions taken under the 
pilot program. 
(D) Any recommendations for legislation to facilitate dona-
tions or collections of excess food and grocery products of the 
United States or others for nonprofit organizations. 
(f) DEFINITIONS.—For purposes of this section: 
(1) The term "service academy" means each of the following: 
(A) The United States Military Academy. 
(B) The United States Naval Academy. 
(C) The United States Air Force Academy. 
(D) The United States Coast Guard Academy. 
(2) The term "Secretary concerned" means the following: 
(A) The Secretary of the Army, with respect to the 
United States Military Academy. 
(B) The Secretary of the Navy, with respect to the 
United States Naval Academy. 
(C) The Secretary of the Air Force, with respect to 
the United States Air Force Academy. 
(D) The Secretary of Transportation, with respect to 
the United States Coast Guard Academy. 
(3) The terms "apparently fit grocery product", "apparently 
wholesome food", "donate", "food", and "grocery product" have 
the meanings given those terms in section 402(b) of the National 
and Community Service Act of 1990 (42 U.S.C. 12672(b)). 
SEC. 375. AUTHORITY OF AIR NATIONAL GUARD TO PROVIDE CERTAIN 
SERVICES AT LINCOLN MUNICIPAL AIRPORT, LINCOLN, 
NEBRASKA. 
(a) AUTHORITY.—^The Nebraska Air National Guard may provide 
fire protection services and rescue services relating to aircraft at 
Lincoln Municipal Airport, Lincoln, Nebraska, on behalf of the 
Lincoln Municipal Airport Authority, Lincoln, Nebraska. 
(b) AGREEMENT.—The Nebraska Air National Guard may not 
provide services under subsection (a) until the Nebraska Air 
National Guard and the authority enter into an agreement under 
which the authority agrees— 
(1) to reimburse the Nebraska Air National Guard for 
the cost of the services provided; and 
(2) to hold harmless and indemnify the United States, 
except in cases of willful misconduct or gross negligence, from 
any claim for damages or injury to any person or property 
arising out of the provision of, or the failure to provide, such 
services. 
(c) EFFECT ON MILITARY PREPAREDNESS.—Services may only 
be provided under subsection (a) to the extent that the provision 
of such services does not adversely affect the military preparedness 
of the Armed Forces. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2503 
SEC. 376. TECHNICAL 
AMENDMENT 
REGARDING 
IMPACT 
AID 
PROGRAM. 
Paragraph (3) of section 8003(a) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7703(a)) is amended 
by striking out "2,000 and such number equals or exceeds 15" 
and inserting in lieu thereof "1,000 or such number equals or 
exceeds 10". 
TITLE IV—MILITARY PERSONNEL 
AUTHORIZATIONS 
Subtitle A—^Active Forces 
Sec. 401. End strengths for active forces. 
Sec. 402. Permanent end strength levels to support two major regional contin-
gencies. 
Sec. 403. Authorized strengths for commissioned officers on active duty in grades 
of major, lieutenant colonel, and colonel and navy grades of lieutenant 
commander, commander, and captain. 
Sec. 404. Extension of requirement for recommendations regarding appointments to 
joint 4-star officer positions. 
Sec. 405. Increase in authorized number of general officers on active duty in the 
Marine Corps. 
Subtitle B—Reserve Forces 
Sec. 411. End strengths for Selected Reserve. 
Sec. 412. End strengths for reserves on active duty in support of the Reserves. 
Sec. 413. End strengths for military technicians. 
Sec. 414. Assurance of continued assignment of military personnel to serve in 
Selective Service System. 
Subtitle C—^Authorization of Appropriations 
Sec. 421. Authorization of appropriations for military personnel. 
Subtitle A—^Active Forces 
SEC. 401. END STRENGTHS FOR ACTIVE FORCES. 
10 USC 115 note. 
The Armed Forces are authorized strengths for active duty 
personnel as of September 30, 1997, as follows: 
(1) The Army, 495,000. 
(2) The Navy, 407,318. 
(3) The Marine Corps, 174,000. 
(4) The Air Force, 381,100. 
SEC. 402. PERMANENT END STRENGTH LEVELS TO SUPPORT TWO 
MAJOR REGIONAL CONTINGENCIES. 
(a) REQUIREMENT TO BUDGET FOR AND MAINTAIN STATUTORY 
END STRENGTH LEVELS.—Section 691 of title 10, United States 
Code, is amended— 
(1) by redesignating subsections (d) and (e) as subsections 
(e) and (f), respectively; and 
(2) by striking out subsection (c) and inserting in lieu 
thereof the following: 
"(c) The budget for the Department of Defense for any fiscal 
year as submitted to Congress shall include amounts for funding 
for each of the armed forces (other than the Coast Guard) at 
least in the amounts necessary to maintain the active duty end 
strengths prescribed in subsection (b), as in effect at the time 
that such budget is submitted. 
110 STAT. 2504 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(d) No funds appropriated to the Department of Defense may 
be used to implement a reduction of the active duty end strength 
for any of the armed forces (other than the Coast Guard) for 
any fiscal year below the level specified in subsection (b) unless 
the reduction in end strength for that armed force for that fiscal 
year is specifically authorized by law.". 
(b) TEMPORARY FLEXIBILITY RELATING TO PERMANENT END 
STRENGTH LEVELS.—Subsection (e) of such section, as redesignated 
by subsection (a)(1), is amended by striking out "not more than 
0.5 percent" and inserting in lieu thereof "not more than 1 percent". 
SEC. 403. AUTHORIZED STRENGTHS FOR COMMISSIONED OFFICERS 
ON ACTIVE DUTY IN GRADES OF MAJOR, LIEUTENANT 
COLONEL, AND COLONEL AND NAVY GRADES OF LIEUTEN-
ANT COMMANDER, COMMANDER, AND CAPTAIN. 
(a) REVISION IN ARMY, AIR FORCE, AND MARINE CORPS LIMITA-
TIONS.—^The table in paragraph (1) of section 523(a) of title 10, 
United States Code, is amended to read as follows: 
"Total number of commissioned 
officers (excluding officers in 
categories specified in sub-
section (b)) on active duty: 
Number of officers who may be serving on active duty in the 
grade of: 
Major 
Lieutenant 
Colonel 
Colonel 
Army: 
20,000 .
. 
25,000 .
. 
30,000 .
. 
35,000 .
. 
40,000 .
. 
45,000 .
. 
50,000 .
. 
55,000 .
. 
60,000 .
. 
65,000 .
. 
70,000 .
. 
75,000 .
. 
80,000 .
. 
85,000 .
. 
90,000 .
. 
95,000 .
. 
100,000 
110,000 
120,000 
130,000 
170,000 
Air 
Force: 
35,000 .
. 
40,000 .
. 
45,000 .
. 
50,000 .
. 
55,000 .
. 
60,000 .
. 
65,000 .
. 
6,848 
7,539 
8,231 
8,922 
9,614 
10,305 
10,997 
11,688 
12,380 
13,071 
13,763 
14,454 
15,146 
15,837 
16,529 
17,220 
17,912 
19,295 
20,678 
22,061 
27,593 
9,216 
10,025 
10,835 
11,645 
12,454 
13,264 
14,073 
5,253 
5,642 
6,030 
6,419 
6,807 
7,196 
7,584 
7,973 
8,361 
8,750 
9,138 
9,527 
9,915 
10,304 
10,692 
11,081 
11,469 
12,246 
13,023 
13,800 
16,908 
7,090 
7,478 
7,866 
8,253 
8,641 
9,029 
9,417 
1,613 
1,796 
1,980 
2,163 
2,347 
2,530 
2,713 
2,897 
3,080 
3,264 
3,447 
3,631 
3,814 
3,997 
4,181 
4,364 
4,548 
4,915 
5,281 
5,648 
7,116 
2,125 
2,306 
2,487 
2,668 
2,849 
3,030 
3,211 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2505 
"Total number of commissioned 
officers (excluding officers in 
categories specified in sub-
section (b)) on active duty: 
Number of officers who may be serving on active duty in the 
grade of: 
Major 
14,883 
15,693 
16,502 
17,312 
18,121 
18,931 
19,741 
20,550 
21,360 
22,169 
22,979 
23,789 
2,525 
2,900 
3,275 
3,650 
4,025 
4,400 
4,775 
Lieutenant 
Colonel 
9,805 
10,193 
10,582 
10,971 
11,360 
11,749 
12,138 
12,527 
12,915 
13,304 
13,692 
14,081 
1,480 
1,600 
1,720 
1,840 
1,960 
2,080 
2,200 
Colonel 
3,392 
3,573 
3,754 
3,935 
4,115 
4,296 
4,477 
4,658 
4,838 
5,019 
5,200 
5,381 
571 
592 
613 
633 
654 
675 
695." 
70,000 
75,000 
80,000 
85,000 
90,000 
95,000 
100,000 
105,000 
110,000 
115,000 
120,000 
125,000 
Marine Corps: 
10,000 
12,500 
15,000 
17,500 
20,000 
22,500 
25,000 
(b) REVISION IN NAVY LIMITATIONS.—The table in paragraph 
(2) of such section is amended to read as follows: 
"Total number of commissioned 
officers (excluding officers in 
categories specified in sub-
section (b)) on active duty: 
Number of officers who may be serving on active duty in 
grade of: 
Lieutenant com-
mander 
7,331 
7,799 
8,267 
8,735 
9,203 
9,671 
10,139 
10,606 
11,074 
11,541 
12,009 
12,476 
12,944 
13,567 
16,683 
Commander 
5,018 
5,239 
5,460 
5,681 
5,902 
6,123 
6,343 
6,561 
6,782 
7,002 
7,222 
7,441 
7,661 
7,954 
9,419 
Captain 
2,116 
2,223 
2,330 
2,437 
2,544 
2,651 
2,758 
2,864 
2,971 
3,078 
3,185 
3,292 
3,398 
3,541 
4,254." 
Navy: 
30,000 
33,000 
36,000 
39,000 
42,000 
45,000 
48,000 
51,000 
54,000 
57,000 
60,000 
63,000 
66,000 
70,000 
90,000 
(c) REPEAL O F TEMPORARY AUTHORITY FOR VARIATIONS IN E N D 
STRENGTHS.—The following provisions of law are repealed: 
110 STAT. 2506 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(1) Section 402 of the National Defense Authorization Act 
for Fiscal Year 1994 (PubHc Law 103-160; 107 Stat. 1639; 
10 U.S.C. 523 note). 
(2) Section 402 of the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2743; 
10 U.S.C. 523 note). 
(3) Section 402 of the National Defense Authorization Act 
for Fiscal Year 1996 (Pubhc Law 104-106; 110 Stat. 286; 10 
U.S.C. 523 note). 
10 use 523 note. 
(d) EFFECTIVE DATE.—The amendments made by subsections 
(a), (b), and (c) shall take effect on September 1, 1997. 
SEC. 404. EXTENSION OF REQUIREMENT FOR RECOMMENDATIONS 
REGARDING APPOINTMENTS TO JOINT 4-STAR OFFICER 
POSITIONS. 
(a) SERVICE SECRETARY RECOMMENDATION REQUIRED.—Section 
604(c) of title 10, United States Code, is amended by striking 
out "September 30, 1997" and inserting in lieu thereof "September 
30, 2000". 
(b) GRADE RELIEF WHEN RECOMMENDATION MADE.—Section 
525(b)(5)(C) of such title is amended by striking out "September 
30, 1997" and inserting in lieu thereof "September 30, 2000". 
SEC. 405. INCREASE IN AUTHORIZED NUMBER OF GENERAL OFFICERS 
ON ACTIVE DUTY IN THE MARINE CORPS. 
Section 526(a)(4) of title 10, United States Code, is amended 
by striking out "68" and inserting in lieu thereof "80". 
Subtitle B—Reserve Forces 
10 u s e 12001 
SEC. 411. END STRENGTHS FOR SELECTED RESERVE. 
(a) IN GENERAL.—^The Armed Forces are authorized strengths 
for Selected Reserve personnel of the reserve components as of 
September 30, 1997, as follows: 
(1) The Army National Guard of the United States, 366,758. 
(2) The Army Reserve, 215,179. 
(3) The Naval Reserve, 96,304. 
(4) The Marine Corps Reserve, 42,000. 
(5) The Air National Guard of the United States, 109,178. 
(6) The Air Force Reserve, 73,311. 
(7) The Coast Guard Reserve, 8,000. 
(b) WAIVER AUTHORITY.—^The Secretary of Defense may vary 
the end strength authorized by subsection (a) by not more than 
2 percent. 
(c) ADJUSTMENTS.—The end strengths prescribed by subsection 
(a) for the Selected Reserve of any reserve component for a fiscal 
year shall be proportionately reduced by— 
(1) the total authorized strength of units organized to serve 
as units of the Selected Reserve of such component which 
are on active duty (other than for training) at the end of 
the fiscal year, and 
(2) the total number of individual members not in units 
organized to serve as units of the Selected Reserve of such 
component who are on active duty (other than for training 
or for unsatisfactory participation in training) without their 
consent at the end of the fiscal year. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2507 
Whenever such units or such individual members are released 
from active duty during any fiscal year, the end strength prescribed 
for such fiscal year for the Selected Reserve of such reserve compo-
nent shall be proportionately increased by the total authorized 
strengths of such units and by the total number of such individual 
members. 
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUP- 
10 USC 12001 
PORT OF THE RESERVES. 
note. 
Within the end strengths prescribed in section 411(a), the 
reserve components of the Armed Forces are authorized, as of 
September 30, 1997, the following number of Reserves to be serving 
on full-time active duty or full-time duty, in the case of members 
of the National Guard, for the purpose of organizing, administering, 
recruiting, instructing, or training the reserve components: 
(1) The Army National Guard of the United States, 22,798. 
(2) The Army Reserve, 11,729. 
(3) The Naval Reserve, 16,603. 
(4) The Marine Corps Reserve, 2,559. 
(5) The Air National Guard of the United States, 10,403. 
(6) The Air Force Reserve, 655. 
SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS. 
10 USC 115 note. 
(a) AUTHORIZATION FOR FISCAL YEAR 1997.—The minimum 
number of military technicians as of the last day of fiscal year 
1997 for the reserve components of the Army and the Air Force 
(notwithstanding section 129 of title 10, United States Code) shall 
be the following: 
(1) For the Army Reserve, 6,799. 
(2) For the Army National Guard of the United States, 
25,500. 
(3) For the Air Force Reserve, 9,802. 
(4) For the Air National Guard of the United States, 23,299. 
(b) INFORMATION TO B E PROVIDED WITH FUTURE AUTHORIZA-
TION REQUESTS.—Section 10216 of title 10, United States Code, 
is amended— 
(1) by redesignating subsection (b) as subsection (c); and 
(2) by inserting after subsection (a) the following new sub-
section (b): 
"(b) INFORMATION REQUIRED TO B E SUBMITTED WITH ANNUAL 
END 
STRENGTH AUTHORIZATION REQUEST.—(1) The Secretary of 
Defense shall include as part of the budget justification documents 
submitted to Congress with the budget of the Department of Defense 
for any fiscal year the following information with respect to the 
end strengths for military technicians requested in that budget 
pursuant to section 115(g) of this title, shown separately for each 
of the Army and Air Force reserve components: 
"(A) The number of dual-status technicians in the high 
priority units and organizations specified in subsection (a)(1). 
"(B) The number of technicians other than dual-status 
technicians in the high priority units and organizations speci-
fied in subsection (a)(1). 
"(C) The number of dual-status technicians in other than 
high priority units and organizations specified in subsection 
(a)(1). 
"(D) The number of technicians other than dual-status 
technicians in other than high priority units and organizations 
specified in subsection (a)(1). 
110 STAT. 2508 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(2)(A) If the budget submitted to Congress for any fiscal year 
requests authorization for that fiscal year under section 115(g) 
of this title of a military technician end strength for a reserve 
component of the Army or Air Force in a number that constitutes 
a reduction from the end strength minimum established by law 
for that reserve component for the fiscal year during which the 
budget is submitted, the Secretary of Defense shall submit to the 
congressional defense committees with that budget a justification 
providing the basis for that requested reduction in technician end 
strength. 
"(B) Any justification submitted under subparagraph (A) shall 
clearly delineate— 
"(i) in the case of a reduction that includes a reduction 
in technicians described in subparagraph (A) or (C) of para-
graph (1), the specific force structure reductions forming the 
basis for such requested technician reduction (and the numbers 
related to those force structure reductions); and 
"(ii) in the case of a reduction that includes reductions 
in technicians described in subparagraphs (B) or (D) of para-
graph (1), the specific force structure reductions, Department 
of Defense civilian personnel reductions, or other reasons form-
ing the basis for such requested technician reduction (and the 
numbers related to those reductions).". 
(c) 
TECHNICAL 
AMENDMENTS.—Such 
section 
is 
further 
amended— 
(1) in subsection (a), by striking out "section 115" and 
inserting in lieu thereof "section 115(g)"; and 
(2) in subsection (c), as redesignated by subsection (b)(1), 
by striking out "after the date of the enactment of this section" 
both places it appears and inserting in lieu thereof "after Feb-
ruary 10, 1996,". 
SEC. 414. ASSURANCE OF CONTINUED ASSIGNMENT OF MILITARY 
PERSONNEL TO SERVE IN SELECTIVE SERVICE SYSTEM. 
(a) NUMBER OF MILITARY PERSONNEL To BE ASSIGNED.—Section 
10 of the Military Selective Service Act (50 U.S.C. App. 460) is 
amended— 
(1) in subsection (b)(2), by inserting ", subject to subsection 
(e)," after "to employ such number of civilians, and"; and 
(2) by inserting after subsection (d) the following new sub-
section: 
"(e) The total number of armed forces personnel assigned to 
the Selective Service System under subsection (b)(2) at any time 
may not be less than the number of such personnel determined 
by the Director of Selective Service to be necessary, but not to 
exceed 745 persons, except that the President may assign additional 
armed forces personnel to the Selective Service System during 
a time of war or a national emergency declared by Congress or 
the President.". 
(b) STYLISTIC AMENDMENTS.—Subsection (b) of such section is 
amended— 
(1) by striking out "authorized—" in the matter preceding 
paragraph (1) and inserting in lieu thereof "authorized to under-
take the following:"; 
(2) by striking out "to" at the beginning of paragraphs 
(1) through (7) and inserting in lieu thereof "To"; 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2509 
(3) by striking out "subject" at the beginning of paragraphs 
(8), (9), and (10) and inserting in lieu thereof "Subject"; and 
(4) by striking out the semicolon at the end of paragraphs 
(1) through (9) and inserting in lieu thereof a period. 
Subtitle C—^Authorization of 
Appropriations 
SEC. 421. AUTHORIZATION 
OF 
APPROPRIATIONS 
FOR 
MILITARY 
PERSONNEL. 
There is hereby authorized to be appropriated to the Depart-
ment of Defense for military personnel for fiscal year 1997 a total 
of $70,056,130,000. The authorization in the preceding sentence 
supersedes any other authorization of appropriations (definite or 
indefinite) for such purpose for fiscal year 1997. 
TITLE V—MILITARY PERSONNEL 
POLICY 
Subtitle A—Officer Personnel Policy 
Sec. 501. Grade of Chief of Naval Research. 
Sec. 502. Chief and assistant chief of Army Nurse Corps and Air Force Nurse 
Corps. 
Sec. 503. Navy spot promotion authority for certain Heutenants with critical skills. 
Sec. 504. Time for award of degrees by unaccredited educational institutions for 
graduates to be considered educationally qualified for appointment as 
Reserve officers in grade 0-3. 
Sec. 505. Exception to baccalaureate degree requirement for appointment in the 
Naval Reserve in grades above 0-2. 
Sec. 506. Chief warrant officer promotions. 
Sec. 507. Service credit for senior ROTC cadets and midshipmen in simultaneous 
membership program. 
Sec. 508. Continuation on active status for certain Reserve officers of the Air Force. 
Sec. 509. Reports on response to recommendations concerning improvements to 
Department of Defense joint manpower process. 
Sec. 510. Frequency of reports to Congress on joint officer management policies. 
Subtitle B—Enlisted Personnel Policy 
Sec. 511. Career service reenlistments for members with at least 10 years of 
service. 
Sec. 512. Authority to extend period for entry on active duty under the delayed 
entry program. 
Subtitle C—^Activation and Recall 
Sec. 521. Limitations on recall of retired members to active duty. 
Sec. 522. Clarification of definition of active status. 
Sec. 523. Limitation of requirement for physical examinations of members of 
National Guard called into Federal service. 
Subtitle D—Reserve Component Retirement 
Sec. 531. Increase in annual limit on days of inactive duty training creditable 
toward reserve retirement. 
Sec. 532. Retirement of reserve enlisted members who qualify for active duty 
retirement afl;er administrative reduction in enlisted grade. 
Sec. 533. Authority for a Reserve on active duty to waive retirement sanctuary. 
Sec. 534. Eligibility of Reserves for disability retirement. 
Subtitle E—Other Reserve Component Matters 
Sec. 541. Training for Reserves on active duty in support of the Reserves. 
Sec. 542. Eligibility for enrollment in Ready Reserve mobilization income insurance 
program. 
Sec. 543. Reserve credit for participation in Health Professions Scholarship and 
Financial Assistance Program. 
110 STAT. 2510 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Sec. 544. Amendments to Reserve Officer Personnel Management Act provisions. 
Sec. 545. Report on number of advisers in active component support of Reserves 
pilot program. 
Sec. 546. Sense of Congress and report regarding reemployment rights for mobilized 
Reservists employed in foreign countries. 
Sec. 547. Payment of premiums under Mobilization Income Insurance Program. 
Subtitle F—Officer Education Programs 
Sec. 551. Oversight and management of Senior Reserve Officers' Training Corps 
program. 
Sec. 552. Prohibition on reorganization of Army ROTC cadet command or termi-
nation of senior ROTC units pending report on ROTC. 
Sec. 553. Pilot program to test expansion of ROTC program to include graduate 
students. 
Sec. 554. Demonstration project for instruction and support of Army ROTC units 
by members of the Army Reserve and National Guard. 
Sec. 555. Extension of maximum age for appointment as a cadet or midshipman in 
the Senior Reserve Officers' Training Corps and the service academies. 
Sec. 556. Expansion of eligibility for education oenefits to include certain Reserve 
Officers' Training Corps (ROTC) participants. 
Sec. 557. Comptroller General report on cost and policy implications of permitting 
up to five percent of service academy graduates to be assigned directly 
to Reserve duty upon graduation. 
Subtitle G—Decorations and Awards 
Sec. 561. Authority for award of Medal of Honor to certain African American 
soldiers who served during World War II. 
Sec. 562. Waiver of time limitations for award of certain decorations to specified 
persons. 
Sec. 563. Replacement of certain American Theater Campaign Ribbons. 
Subtitle H—Other Matters 
Sec. 571. Hate crimes in the military. 
Sec. 572. Disability coverage for members granted excess leave for educational or 
emergency purposes. 
Sec. 573. Clarification of authority of a reserve judge advocate to act as a military 
notary public when not in a duty status. 
Sec. 574. Panel on jurisdiction of courts-martial for the National Guard when not 
in Federal service. 
Sec. 575. Authority to expand law enforcement placement program to include fire-
fighters. 
Sec. 576. Improvements to program to assist separated military and civilian 
personnel to obtain employment as teachers or teachers' aides. 
Sec. 577. Retirement at grade to which selected for promotion when a physical dis-
ability is found at any physical examination. 
Sec. 578. Revisions to missing persons authorities. 
Subtitle I—Commissioned Corps of the Public Health Service 
Sec. 581. Applicability to Public Health Service of prohibition on crediting cadet or 
midshipmen service at the service academies. 
Sec. 582. Exception to strength limitations for Public Health Service officers 
assigned to the Department of Defense. 
Sec. 583. Authority to provide legal assistance to Public Health Service officers. 
Subtitle A—Officer Personnel Policy 
SEC. 501. GRADE OF CfflEF OF NAVAL RESEARCH. 
(a) REAR ADMIRAL (UPPER HALF).—Section 5022(a) of title 10, 
United States Code, is amended— 
(1) by inserting "(1)" after "(a)"; and 
(2) by adding at the end the following: 
"(2) Unless appointed to higher grade under another provision 
of law, an officer, while serving in the Office of Naval Research 
as Chief of Naval Research, has the rank of rear admiral (upper 
half).". 
1
0 use 5022 
(b) EFFECTIVE DATE.—Paragraph (2) of section 5022(a) of title 
note. 
10, United States Code, as added by subsection (a), shall take 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2511 
effect upon the occurrence of the first vacancy in the position 
of Chief of Naval Research after the date of the enactment of 
this Act. 
Sec. 502. CHIEF AND ASSISTANT CHIEF OF ARMY NURSE CORPS AND 
AIR FORCE NURSE CORPS. 
(a) ARMY NURSE CORPS.—(1) Subsection (b) of section 3069 
of title 10, United States Code, is amended— 
(A) in the first sentence, by striking out "major" and insert-
ing in lieu thereof "lieutenant colonel"; 
(B) by inserting after the first sentence the following: "An 
appointee who holds a lower regular grade shall be appointed 
in the regular grade of brigadier general."; and 
(C) in the last sentence, by inserting "to the same position" 
before the period at the end. 
(2) Subsection (c) of such section is amended by striking out 
"major" in the first sentence and inserting in lieu thereof "lieutenant 
colonel". 
(3) The heading of such section is amended to read as follows: 
**§3069. Army Nurse Corps: composition; Chief and assist-
ant chief; appointment; grade 
(b) AIR FORCE NURSE CORPS.—Chapter 807 of such title is 
amended by inserting after section 8067 the following new section: 
*
*
§ 8069. Air Force nurses: Chief and assistant chief; appoint-
ment; grade 
"(a) POSITIONS OF CHIEF AND ASSISTANT CHIEF.—^There are 
a Chief and assistant chief of the Air Force Nurse Corps. 
"(b) CHIEF.—The Secretary of the Air Force shall appoint the 
Chief from the officers of the Regular Air Force designated as 
Air Force nurses whose regular grade is above lieutenant colonel 
and who are recommended by the Surgeon Greneral. An appointee 
who holds a lower regular grade shall be appointed in the regular 
grade of brigadier general. The Chief serves during the pleasure 
of the Secretary, but not for more than three years, and may 
not be reappointed to the same position. 
"(c) ASSISTANT CHIEF.—The Surgeon General shall appoint the 
assistant chief from the officers of the Regular Air Force designated 
as Air Force nurses whose regular grade is above lieutenant 
colonel.". 
(c) CLERICAL AMENDMENTS.—(1) The item relating to section 
3069 in the table of sections at the beginning of chapter 307 of 
such title is amended to read as follows: 
"3069. Army Nurse Corps: composition; Chief and assistant chief; appointment; 
grade.". 
(2) The table of sections at the beginning of chapter 807 of 
such title is amended by inserting after the item relating to section 
8067 the following new item: 
"8069. Air Force Nurse Corps: Chief and assistant chief; appointment; grade.". 
Sec. 503. 
NAVY 
SPOT 
PROMOTION 
AUTHORITY 
FOR 
CERTAIN 
LIEUTENANTS WITH CRITICAL SKILLS. 
(a) ADVICE-AND-CONSENT APPOINTMENTS.—Subsection (a) 
of 
section 5721 of title 10, United States Code, is amended by striking 
out "the President alone" and inserting in lieu thereof "the Presi-
dent, by and with the advice and consent of the Senate". 
110 STAT. 2512 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(b) REPEAL OF TERMINATION OF AUTHORITY.—Such section is 
further amended by striking out subsection (g). 
(c) CLERICAL AMENDMENT.—The caption for subsection (a) is 
amended to read as follows: "PROMOTION AUTHORITY FOR CERTAIN 
OFFICERS WITH CRITICAL SKILLS.—". 
SEC. 504. TIME 
FOR 
AWARD 
OF 
DEGREES 
BY UNACCREDITED 
EDUCATIONAL INSTITUTIONS FOR GRADUATES TO BE 
CONSIDERED EDUCATIONALLY QUALIFIED FOR APPOINT-
MENT AS RESERVE OFFICERS IN GRADE 0-3. 
Section 12205(c)(2)(C) of title 10, United States Code, is 
amended by striking out "three years" and inserting in lieu thereof 
"eight years". 
SEC. 505. 
EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT 
FOR 
APPOINTMENT 
IN 
THE 
NAVAL 
RESERVE 
IN 
GRADES 
ABOVE 
0-2. 
Section 12205(b)(3) of title 10, United States Code, is amended 
by inserting "or the Seaman to Admiral program" after "(NAVCAD) 
program". 
SEC. 506. CHIEF WARRANT OFFICER PROMOTIONS. 
(a) REDUCTION OF MINIMUM TIME IN GRADE REQUIRED FOR 
CONSIDERATION FOR PROMOTION.—Section 574(e) of title 10, United 
States Code, is amended by striking out "three years of service" 
and inserting in lieu thereof "two years of service". 
(b) BELOW-ZONE SELECTION.—Section 575(b)(1) of such title 
is amended by inserting "chief warrant officer, W-3," in the first 
sentence after "to consider warrant officers for selection for pro-
motion to the grade of. 
SEC. 507. SERVICE CREDIT FOR SENIOR ROTC CADETS AND MID-
SHIPMEN IN SIMULTANEOUS MEMBERSHIP PROGRAM. 
(a) AMENDMENTS TO TITLE 10.—(1) Section 2106(c) of title 10, 
United States Code, is amended by striking out "while serving 
on active duty other than for training after July 31, 1990, while 
a member of the Selected Reserve" and inserting in lieu thereof 
"performed on or after August 1, 1979, as a member of the Selected 
Reserve". 
(2) Section 2107(g) of such title is amended by striking out 
"while serving on active duty other than for training after July 
31, 1990, while a member of the Selected Reserve" and inserting 
in lieu thereof "performed on or after August 1, 1979, as a member 
of the Selected Reserve". 
(3) Section 2107a(g) of such title is amended by inserting 
", other than enlisted service performed after August 1, 1979, as 
a member of Selected Reserve" after "service as a cadet or with 
concurrent enlisted service". 
(b) AMENDMENT TO TITLE 37.—Section 205(d) of title 37, United 
States Code, is amended by striking out "that service after July 
31, 1990, that the officer performed while serving on active duty" 
and inserting in lieu thereof "for service that the officer performed 
on or after August 1, 1979.". 
10 use 2106 
(c) BENEFITS N O T T O ACCRUE FOR PRIOR PERIODS.—No increase 
note. 
in pay or retired or retainer pay shall accrue for periods before 
the date of the enactment of this Act by reason of the amendments 
made by this section. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2513 
SEC. 508. CONTINUATION ON ACTIVE STATUS FOR CERTAIN RESERVE 
OFFICERS OF THE AIR FORCE. 
(a) AUTHORITY.—Section 14507 of title 10, United States Code, 
is amended by adding at the end the following new subsection: 
"(c) TEMPORARY AUTHORITY TO RETAIN CERTAIN OFFICERS DES-
IGNATED AS JUDGE ADVOCATES.—(1) Notwithstanding the provisions 
of subsections (a) and (b), the Secretary of the Air Force may 
retain on the reserve active-status list any reserve officer of the 
Air Force who is designated as a judge advocate and who obtained 
the first professional degree in law while on an educational delay 
program subsequent to being commissioned through the Reserve 
Officers' Training Corps. 
"(2) No more than 50 officers may be retained on the reserve 
active-status list under the authority of paragraph (1) at any time. 
"(3) No officer may be retained on the reserve active-status 
list under the authority of paragraph (1) for a period exceeding 
three years from the date on which, but for that authority, that 
officer would have been removed from the reserve active-status 
list under subsection (a) or (b). 
"(4) The authority of the Secretary of the Air Force under 
paragraph (1) expires on September 30, 2003.". 
(b) EFFECTIVE DATE.—Subsection (c) of section 14507 of title 
10, United States Code, as added by subsection (a), shall take 
effect on October 1, 1996. 
SEC. 509. REPORTS ON RESPONSE TO RECOMMENDATIONS CONCERN-
ING IMPROVEMENTS TO DEPARTMENT OF DEFENSE JOINT 
MANPOWER PROCESS. 
(a) SEMIANNUAL REPORT.—The Secretary of Defense shall 
submit to Congress a semiannual report on the status of actions 
taken by the Secretary to implement the recommendations made 
by the Department of Defense Inspector General in the report 
of November 29, 1995, entitled "Inspection of the Department of 
Defense Joint Manpower Process" (Report No. 96-029). The first 
such report shall be submitted not later than February 1, 1997. 
The requirement to submit such reports terminates after the fourth 
such report is submitted. 
(b) ADDITIONAL MATTER FOR FIRST REPORT.—^As part of the 
first report under subsection (a), the Secretary shall include the 
following: 
(1) The Secretary's assessment as to the need to establish 
a joint, centralized permanent organization in the Department 
of Defense to determine, validate, approve, and manage military 
and 
civilian 
manpower 
requirements 
resources 
at 
joint 
organizations. 
(2) The Secretary's assessment of the Department of 
Defense timeline and plan to increase the capability of the 
joint professional military education system (including the 
Armed Forces Staff College) to overcome the capacity limita-
tions cited in the report referred to in subsection (a). 
(3) The Secretary's plan and timeline to provide the nec-
essary training and education of reserve component officers. 
(c) GAO ASSESSMENT.—^The Comptroller General of the United 
States shall assess the completeness and adequacy of the corrective 
actions taken by the Secretary with respect to the matters covered 
in the Inspector General report referred to in subsection (a). Not 
later than one year after the date of the enactment of this Act, 
Expiration date. 
10 u s e 14507 
note. 
Termination 
date. 
110 STAT. 2514 
PUBLIC LAW 104-201—SEPT. 23, 1996 
the Comptroller General shall submit to Congress a report, based 
on the assessment under this subsection, providing the Comptroller 
General's findings and recommendations. 
SEC. 510. FREQUENCY OF REPORTS TO CONGRESS ON JOINT OFFICER 
MANAGEMENT POLICIES. 
(a) CHANGE FROM SEMIANNUAL TO ANNUAL REPORT.—Section 
662(b) of title 10, United States Code, is amended by striking 
out "REPORT.—The Secretary of Defense shall periodically (and 
not less often than every six months) report to Congress on the 
promotion rates" and inserting in lieu thereof "ANNUAL REPORT.— 
Not later than January 1 of each year, the Secretary of Defense 
shall submit to Congress a report on the promotion rates during 
the preceding fiscal year". 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—Such section 
is further amended— 
(1) in the first sentence, by striking out "clauses" and 
inserting in lieu thereof "paragraphs"; and 
(2) in the second sentence— 
(A) by inserting "for any fiscal year" after "such objec-
tives"; and 
(B) by striking out "periodic report required by this 
subsection" and inserting in lieu thereof "report for that 
fiscal year". 
Subtitle B—^Enlisted Personnel Policy 
SEC. 511. CAREER SERVICE REENLISTMENTS FOR MEMBERS WITH AT 
LEAST 10 YEARS OF SERVICE. 
Subsection (d) of section 505 of title 10, United States Code, 
is amended to read as follows: 
"(d)(1) The Secretary concerned may accept a reenlistment in 
the Regular Army, Regular Navy, Regular Air Force, Regular 
Marine Corps, or Regular Coast Guard, as the case may be, for 
a period determined under this subsection. 
"(2) In the case of a member who has less than 10 years 
of service in the armed forces as of the day before the first day 
of the period for which reenlisted, the period for which the member 
reenlists shall be at least two years but not more than six years. 
"(3) In the case of a member who has at least 10 years of 
service in the armed forces as of the day before the first day 
of the period for which reenlisted, the Secretary concerned may 
accept a reenlistment for either— 
"(A) a specified period of at least two years but not more 
than six years; or 
"(B) an unspecified period. 
"(4) No enlisted member is entitled to be reenlisted for a period 
that would expire before the end of the member's current enlist-
ment.". 
SEC. 512. 
AUTHORITY 
TO 
EXTEND PERIOD 
FOR 
ENTRY ON 
ACTIVE 
DUTY 
UNDER 
THE 
DELAYED 
ENTRY 
PROGRAM. 
(a) AUTHORITY.—Section 513(b) of title 10, United States Code, 
is amended by inserting after the first sentence the following: 
"The Secretary concerned may extend the 365-day period for any 
person for up to an additional 180 days if the Secretary determines 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2515 
that it is in the best interests of the armed force of which that 
person is a member to do so.". 
(b) TECHNICAL AMENDMENTS.—Section 513(b) of such title, as 
amended by subsection (a), is further amended— 
(1) by inserting "(1)" after "(b)"; 
(2) by designating the third sentence as 
paragraph 
(2); and 
(3) in paragraph (2), as so designated, by striking out 
"the preceding sentence" and inserting in lieu thereof "para-
graph (1)". 
Subtitle C—^Activation and Recall 
SEC. 521. LIMITATIONS ON RECALL OF RETIRED MEMBERS TO ACTIVE 
DUTY. 
(a) REVISION AND RECODIFICATION OF AUTHORITIES RELATING 
TO RETIRED MEMBERS ORDERED TO ACTIVE DUTY.—Chapter 39 of 
title 10, United States Code, is amended by striking out section 
688 and inserting in lieu thereof the following: 
"§ 688. Retired members: authority to order to active duty; 
duties 
"(a) AUTHORITY.—^Under regulations prescribed by the Secretary Regulations. 
of Defense, a member described in subsection (b) may be ordered 
to active duty by the Secretary of the military department concerned 
at any time. 
"(b) COVERED MEMBERS.—Except as provided in subsection (d), 
subsection (a) applies to the following members of the armed forces: 
"(1) A retired member of the Regular Army, Regular Navy, 
Regular Air Force, or Regular Marine Corps. 
"(2) A member of the Retired Reserve who was retired 
under section 1293, 3911, 3914, 6323, 8911, or 8914 of this 
title. 
"(3) A member of the Fleet Reserve or Fleet Marine Corps 
Reserve. 
"(c) 
DUTIES OF MEMBER ORDERED TO ACTIVE DUTY.—^The 
Secretary concerned may, to the extent consistent with other provi-
sions of law, assign a member ordered to active duty under this 
section to such duties as the Secretary considers necessary in the 
interests of national defense. 
"(d) 
EXCLUSION OF OFFICERS RETIRED ON SELECTIVE EARLY 
RETIREMENT BASIS.—The following officers may not be ordered to 
active duty under this section: 
"(1) An officer who retired under section 638 of this title. 
"(2) An officer who— 
"(A) after having been notified that the officer was 
to be considered for early retirement under section 638 
of this title by a board convened under section 611(b) 
of this title and before being considered by that board, 
requested retirement under section 3911, 6323, or 8911 
of this title; and 
"(B) was retired pursuant to that request. 
"(e) LIMITATION OF PERIOD OF RECALL SERVICE.—^A member 
ordered to active duty under subsection (a) may not serve on active 
duty pursuant to orders under that subsection for more than 12 
110 STAT. 2516 
PUBLIC LAW 104-201—SEPT. 23, 1996 
months within the 24 months following the first day of the active 
duty to which ordered under that subsection. 
"(f) WAIVER FOR PERIODS OF WAR OR NATIONAL EMERGENCY.— 
Subsections (d) and (e) do not apply in time of war or of national 
emergency declared by Congress or the President. 
''§689. Retired members: grade in which ordered to active 
duty and upon release from active duty 
"(a) GENERAL RULE FOR GRADE IN WHICH ORDERED TO ACTIVE 
DUTY.—Except as provided in subsections (b) and (c), a retired 
member ordered to active duty under section 688 of this title 
shall be ordered to active duty in the member's retired grade. 
"(b) MEMBERS RETIRED IN 0-9 AND O-IO GRADES.—^A retired 
member ordered to active duty under section 688 of this title 
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. 
"(c) MEMBERS WHO PREVIOUSLY SERVED IN GRADE HIGHER 
THAN RETIRED GRADE.—(1) A retired member ordered to active 
duty under section 688 of this title who has previously served 
on active duty satisfactorily, as determined by the Secretary of 
the military department concerned, in a grade higher than that 
member's retired grade may be ordered to active duty in the highest 
grade in which the member had so served satisfactorily, except 
that such a member may not be so ordered to active duty in 
a grade above major general or rear admiral. 
"(2) A retired member ordered to active duty in a grade that 
is higher than the member's retired grade pursuant to subsection 
(a) shall be treated for purposes of section 690 of this title as 
if the member was promoted to that higher grade while on that 
tour of active duty. 
"(3) If, upon being released from that tour of active duty, 
such a retired member has served on active duty satisfactorily, 
as determined by the Secretary concerned, for not less than a 
total of 36 months in a grade that is a higher grade than the 
member's retired grade, the member is entitled to placement on 
the retired list in that grade. 
"(d) GRADE UPON RELEASE FROM ACTIVE DUTY.—^A member 
ordered to active duty under section 688 of this title who, while 
on active duty, is promoted to a grade that is higher than that 
member's retired grade is entitled, upon that member's release 
from that tour of active duty, to placement on the retired list 
in the highest grade in which the member served on active duty 
satisfactorily, as determined by the Secretary of the military depart-
ment concerned, for not less thsin six months. 
''§690. Retired members ordered to active duty: limitation 
on number 
"(a) GENERAL AND FLAG OFFICERS.—^Not more than 15 retired 
general officers of the Army, Air Force, or Marine Corps, and 
not more than 15 retired flag officers of the Navy, may be on 
active duty at any one time. For the purposes of this subsection 
a retired officer ordered to active duty for a period of 60 days 
or less is not counted. 
"(b) LIMITATION BY SERVICE.—(1) Not more than 25 officers 
of any one armed force may be serving on active duty concurrently 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2517 
pursuant to orders to active duty issued under section 688 of this 
title. 
"(2) In the administration of paragraph (1), the following officers 
shall not be counted: 
"(A) A chaplain who is assigned to duty as a chaplain 
for the period of active duty to which ordered. 
"(B) A health care professional (as characterized by the 
Secretary concerned) who is assigned to duty as a health care 
professional for the period of the active duty to which ordered. 
"(C) Any officer assigned to duty with the American Battle 
Monuments Commission for the period of active duty to which 
ordered. 
"(c) WAIVER FOR PERIODS OF WAR OR NATIONAL EMERGENCY.— 
Subsection (a) does not apply in time of war or of national emer-
gency declared by Congress or the President after November 30, 
1980. Subsection (b) does not apply in time of war or of national 
emergency declared by Congress or the President.". 
(b) EFFECTIVE DATE.—The amendments made by this section 
lo use 688 note, 
shall take effect on September 30, 1997. 
(c) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by striking out the item relating 
to section 688 and inserting in lieu thereof the following: 
"688. Retired members: authority to order to active duty; duties. 
"689. Retired members: grade in which ordered to active duty and upon release 
from active duty. 
"690. Retired members ordered to active duty: limitation on number.". 
(d) CROSS REFERENCE AMENDMENT.—Section 6151(a) of title 
10, United States Code, is amended by striking out "688" and 
inserting in lieu thereof "689". 
SEC. 522. CLARIFICATION OF DEFINITION OF ACTIVE STATUS. 
Section 101(d)(4) of title 10, United States Code, is amended 
by striking out "a reserve commissioned officer, other than a 
commissioned warrant officer," and inserting in lieu thereof the 
following: "a member of a reserve component". 
SEC. 523. LIMITATION OF REQUIREMENT FOR PHYSICAL EXAMINA-
TIONS OF MEMBERS OF NATIONAL GUARD CALLED INTO 
FEDERAL SERVICE. 
Section 12408(a) of title 10, United States Code, is amended 
by inserting "under section 12301(a), 12302, or 12304 of this title" 
after "called into Federal service". 
Subtitle D—Reserve Component 
Retirement 
SEC. 531. INCREASE IN ANNUAL LIMIT ON DAYS OF INACTIVE DUTY 
TRAINING CREDITABLE TOWARD RESERVE RETIREMENT. 
(a) INCREASE IN LIMIT.—Section 12733(3) is amended by 
inserting before the period at the end the following: "of service 
before the year of service in which the date of the enactment 
of the National Defense Authorization Act for Fiscal Year 1997 
occurs and not more than 75 days in any subsequent year of 
service". 
(b) TRACKING SYSTEM FOR AWARD OF RETIREMENT POINTS.— 
lo use 12732 
To better enable the Secretary of Defense and Congress to assess note. 
110 STAT. 2518 
PUBLIC LAW 104-201—SEPT. 23, 1996 
10 use 12732 
note. 
Applicability. 
Applicability. 
the cost and the effect on readiness of the amendment made by 
subsection (a) and of other potential changes to the Reserve retire-
ment system under chapter 1223 of title 10, United States Code, 
the Secretary of Defense shall require the Secretary of each military 
department to implement a system to monitor the award of retire-
ment points for purposes of that chapter by categories in accordance 
with the recommendation set forth in the August 1988 report of 
the Sixth Quadrennial Review of Military Compensation. 
(c) RECOMMENDATIONS TO CONGRESS.—The Secretary shall 
submit to Congress, not later than one year after the date of 
the enactment of this Act, the recommendations of the Secretary 
with regard to the adoption of the following Reserve retirement 
initiatives recommended in the August 1988 report of the Sixth 
Quadrennial Review of Military Compensation: 
(1) Elimination of membership points under subparagraph 
(C) of section 12732(a)(2) of title 10, United States Code, in 
conjunction with a decrease from 50 to 35 in the number 
of points required for a satisfactory year under that section. 
(2) Limitation to 60 in any year on the number of points 
that may be credited under subparagraph (B) of section 
12732(a)(2) of such title at two points per day. 
(3) Limitation 
to 
360 
in 
any 
year 
on 
the 
total 
number of retirement points countable for purposes of section 
12733 of such title. 
SEC. 532. RETIREMENT 
OF RESERVE 
ENLISTED MEMBERS WHO 
QUALIFY FOR ACTIVE DUTY RETIREMENT AFTER ADMINIS-
TRATIVE REDUCTION IN ENLISTED GRADE. 
(a) ARMY.—(1) Chapter 369 of title 10, United States Code, 
is amended by inserting after section 3962 the following new section: 
"§3963. Highest grade held satisfactorily: Reserve enlisted 
members reduced in grade not as a result of the 
member's misconduct 
"(a) A Reserve enlisted member of the Army described in sub-
section (b) who is retired under section 3914 of this title shall 
be retired in the highest enlisted grade in which the member 
served on active duty satisfactorily (or, in the case of a member 
of the National Guard, in which the member served on full-time 
National Guard duty satisfactorily), as determined by the Secretary 
of the Army. 
"(b) This section applies to a Reserve enlisted member who— 
"(1) at the time of retirement is serving on active duty 
(or, in the case of a member of the National Guard, on full-
time National Guard duty) in a grade lower than the highest 
enlisted grade held by the member while on active duty (or 
full-time National Guard duty); and 
"(2) was previously administratively reduced in grade not 
as a result of the member's own misconduct, as determined 
by the Secretary of the Army. 
"(c) This section applies with respect to Reserve enlisted 
members who are retired under section 3914 of this title after 
September 30, 1996.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 3962 
the following new item: 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2519 
"3963. Highest grade held satisfactorily: Reserve enlisted members reduced in grade 
not as a result of the member's misconduct.". 
(b) NAVY AND MARINE CORPS.—(1) Chapter 571 of title 10, 
United States Code, is amended by adding at the end the following 
new section: 
''§6336. Highest grade held satisfactorily: Reserve enlisted 
members reduced in grade not as a result of the 
member's misconduct 
"(a) A member of the Naval Reserve or Marine Corps Reserve 
described in subsection (b) who is transferred to the Fleet Reserve 
or the Fleet Marine Corps Reserve under section 6330 of this 
title shall be transferred in the highest enlisted grade in which 
the member served on active duty satisfactorily, as determined 
by the Secretary of the Navy. 
"(b) This section applies to a Reserve enlisted member who— Applicability. 
"(1) at the time of transfer to the Fleet Reserve or Fleet 
Marine Corps Reserve is serving on active duty in a grade 
lower than the highest enlisted grade held by the member 
while on active duty; and 
"(2) was previously administratively reduced in grade not 
as a result of the member's own misconduct, as determined 
by the Secretary of the Navy. 
"(c) This section applies with respect to enlisted members of Applicability. 
the Naval Reserve and Marine Corps Reserve who are transferred 
to the Fleet Reserve or the Fleet Marine Corps Reserve after 
September 30, 1996.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"6336. Highest grade held satisfactorily: Reserve enlisted members reduced in grade 
not as a result of the member's misconduct.". 
(c) AIR FORCE.—(1) Chapter 869 of title 10, United States 
Code, is amended by inserting after section 8962 the following 
new section: 
''§8963. Highest grade held satisfactorily: Reserve enlisted 
members reduced in grade not as a result of the 
member's misconduct 
"(a) A Reserve enlisted member of the Air Force described 
in subsection (b) who is retired under section 8914 of this title 
shall be retired in the highest enlisted grade in which the member 
served on active duty satisfactorily (or, in the case of a member 
of the National Guard, in which the member served on full-time 
National Guard duty satisfactorily), as determined by the Secretary 
of the Air Force. 
"(b) This section applies to a Reserve enlisted member who— AppUcabihty. 
"(1) at the time of retirement is serving on active duty 
(or, in the case of a member of the National Guard, on full-
time National Guard duty) in a grade lower than the highest 
enlisted grade held by the member while on active duty (or 
full-time National Guard duty); and 
"(2) was previously administratively reduced in grade not 
as a result of the member's own misconduct, as determined 
by the Secretary of the Air Force. 
"(c) This section applies with respect to Reserve enlisted mem- Applicability. 
bers who are retired under section 8914 of this title after September 
30, 1996.". 
110 STAT. 2520 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 8962 
the following new item: 
"8963. Highest grade held satisfactorily: Reserve enlisted members reduced in grade 
not as a result of the member's misconduct.". 
(d) COMPUTATION OF RETIRED AND RETAINER PAY BASED UPON 
RETIRED GRADE.—(1) Section 3991 of such title is amended by 
adding at the end the following new subsection: 
"(c) SPECIAL RULE FOR RETIRED RESERVE ENLISTED MEMBERS 
COVERED BY SECTION 3963.—In the case of a Reserve enlisted 
member retired under section 3914 of this title whose retired grade 
is determined under section 3963 of this title and who first became 
a member of a uniformed service before September 8, 1980, the 
retired pay base of the member (notwithstanding section 1406(a)( 1) 
of this title) is the amount of the monthly basic pay of the member's 
retired grade (determined based upon the rates of basic pay 
applicable on the date of the member's retirement), and that amount 
shall be used for the purposes of subsection (a)(1)(A) rather than 
the amount computed under section 1406(c) of this title.". 
(2) Section 6333 of such title is amended by adding at the 
end the following new subsection: 
"(c) In the case of a Reserve enlisted member whose grade 
upon transfer to the Fleet Reserve or Fleet Marine Corps Reserve 
is determined under section 6336 of this title and who first became 
a member of a uniformed service before September 8, 1980, the 
retainer pay base of the member (notwithstanding section 1406(a)(1) 
of this title) is the amount of the monthly basic pay of the grade 
in which the member is so transferred (determined based upon 
the rates of basic pay applicable on the date of the member's 
transfer), and that amount shall be used for the purposes of the 
table in subsection (a) rather than the amount computed under 
section 1406(d) of this title.". 
(3) Section 8991 of such title is amended by adding at the 
^ 
end the following new subsection: 
"(c) SPECIAL RULE FOR RETIRED RESERVE ENLISTED MEMBERS 
COVERED BY SECTION 8963.—In the case of a Reserve enlisted 
member retired under section 8914 of this title whose retired grade 
is determined under section 8963 of this title and who first became 
a member of a uniformed service before September 8, 1980, the 
retired pay base of the member (notwithstanding section 1406(a)(1) 
of this title) is the amount of the monthly basic pay of the member's 
retired grade (determined based upon the rates of basic pay 
applicable on the date of the member's retirement), and that amount 
shall be used for the purposes of subsection (a)(1)(A) rather than 
the amount computed under section 1406(e) of this title.". 
SEC. 533. AUTHORITY FOR A RESERVE ON ACTIVE DUTY TO WAIVE 
RETIREMENT SANCTUARY. 
Section 12686 of title 10, United States Code, is amended— 
(1) by inserting "(a) LIMITATION.—" before "Under regula-
tions"; and 
(2) by adding at the end the following: 
"(b) WAIVER.—^With respect to a member of a reserve component 
who is to be ordered to active duty (other than for training) under 
section 12301 of this title pursuant to an order to active duty 
that specifies a period of less than 180 days and who (but for 
this subsection) would be covered by subsection (a), the Secretary 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2521 
concerned may require, as a condition of such order to active duty, 
that the member waive the applicabiUty of subsection (a) to the 
member for the period of active duty covered by that order. In 
carrying out this subsection, the Secretary concerned may require 
that a waiver under the preceding sentence be executed before 
the period of active duty begins.". 
SEC. 534. ELIGIBILITY OF RESERVES FOR DISABILITY RETIREMENT. 
Paragraph (2) of section 1204 of title 10, United States Code, 
is amended to read as follows: 
"(2) the disability is the proximate result of, or was incurred 
in line of duty after the date of the enactment of this Act 
as a result of— 
"(A) performing active duty or inactive-duty training; 
"(B) traveling directly to or from the place at which 
such duty is performed; or 
"(C) an injury, illness, or disease incurred or aggra-
vated while remaining overnight, between successive peri-
ods of inactive-duty training, at or in the vicinity of the 
site of the inactive duty training, if the site is outside 
reasonable commuting distance of the member's residence;". 
Subtitle E—Other Reserve Component 
Matters 
SEC. 
541. TRAINING FOR RESERVES 
ON ACTIVE DUTY IN 
SUPPORT 
' 
OF 
THE 
RESERVES. 
Subsection (b) of section 12310 of title 10, United States Code, 
is amended to read as follows: 
"(b) A Reserve on active duty as described in subsection (a) 
may be provided training consistent with training provided to other 
members on active duty, as the Secretary concerned sees fit.". 
SEC. 542. ELIGIBILITY 
FOR 
ENROLLMENT 
IN 
READY 
RESERVE 
MOBILIZATION INCOME INSURANCE PROGRAM. 
Section 12524 of title 10, United States Code, is amended 
by adding at the end the following new subsection: 
"(g) MEMBERS OF INDIVIDUAL READY RESERVE.—Not 
withstand- Regulations, 
ing any other provision of this section, and pursuant to regulations 
issued by the Secretary, a member of the Individual Ready Reserve 
who becomes a member of the Selected Reserve shall not be denied 
eligibility to purchase insurance under this chapter upon becoming 
a member of the Selected Reserve unless the member previously 
declined to enroll in the program of insurance under this chapter 
while a member of the Selected Reserve.". 
SEC. 543. RESERVE CREDIT FOR PARTICIPATION IN HEALTH PROFES-
SIONS 
SCHOLARSHIP 
AND 
FINANCIAL 
ASSISTANCE 
PROGRAM. 
(a) CREDIT AUTHORIZED.—Section 2126 of title 10, United States 
Code, is amended— 
(1) by striking out "Service performed" and inserting in 
lieu thereof "(a) SERVICE NOT CREDITABLE.—Except as provided 
in subsection (b), service performed"; and 
(2) by adding at the end the following: 
110 STAT. 2522 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(b) SERVICE CREDITABLE FOR CERTAIN PURPOSES.—(1) The Sec-
retary concerned may authorize service performed by a member 
of the program in pursuit of a course of study under this subchapter 
to be counted in accordance with this subsection if the member— 
"(A) completes the course of study; 
"(B) completes the active duty obligation imposed under 
section 2123(a) of this title; and 
"(C) possesses a specialty designated by the Secretary con-
cerned as critically needed in wartime. 
"(2) Service credited under paragraph (1) counts only for the 
following purposes: 
"(A) Award of retirement points for computation of 
years of service under section 12732 of this title and for com-
putation of retired pay under section 12733 of this title. 
"(B) Computation of years of service creditable under sec-
tion 205 of title 37. 
"(3) For purposes of paragraph (2)(A), a member may be credited 
in accordance with paragraph (1) with not more than 50 points 
for each year of participation in a course of study that the member 
satisfactorily completes as a member of the program. 
"(4) Service may not be counted under paragraph (1) for more 
than four years of participation in a course of study as a member 
of the program. 
"(5) A member is not entitled to any retroactive award of, 
or increase in, pay or allowances under title 37 by reason of an 
award of service credit under paragraph (1).". 
(b) AWARD OF RETIREMENT POINTS.—(1) Section 12732(a)(2) 
of such title is amended— 
(A) by inserting after clause (C) the following: 
"(D) Points credited for the year under section 2126(b) 
of this title."; and 
(B) in the matter following clause (D), as inserted by para-
graph (1), by striking out "and (C)" and inserting in lieu thereof 
"(C), and (D)". 
(2) Section 12733(3) of such title is amended by striking out 
"or (C)" and inserting in lieu thereof "(C), or (D)". 
SEC. 544. AMENDMENTS TO RESERVE OFFICER PERSONNEL MANAGE-
MENT ACT PROVISIONS. 
(a) SERVICE REQUIREMENT FOR RETIREMENT IN HIGHEST GRADE 
HELD.—Section 
1370(d) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraph (3) as paragraph (4); 
(2) in paragraph (2XA), by striking out "(A)"; 
(3) by redesignating paragraph 
(2)(B) as paragraph 
(3); and 
(4) in paragraph (3), as so redesignated— 
(A) by designating the first sentence as subpara-
graph (A); 
(B) by designating the second sentence as subpara-
graph (B); 
(C) in subparagraph (B), as so redesignated, by striking 
out "the preceding sentence" and inserting in lieu thereof 
"subparagraph (A)"; and 
(D) by adding at the end the following: 
"(C) If a person covered by subparagraph (A) has completed 
at least six months of satisfactory service in grade, the person 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2523 
was serving in that grade while serving in a position of adjutant 
general required under section 314 of title 32 or while serving 
in a position of assistant adjutant general subordinate to such 
a position of adjutant general, and the person has failed to complete 
three years of service in that grade solely because the person's 
appointment to such position has been terminated or vacated as 
described in section 324(b) of such title, then such person may 
be credited with satisfactory service in that grade, notwithstanding 
the failure to complete three years of service in that grade. 
"(D) To the extent authorized by the Secretary of the military 
department concerned, a person who, after having been rec-
ommended for promotion in a report of a promotion board but 
before being promoted to the recommended grade, served in a 
position for which that grade is the minimum authorized grade 
may be credited for purposes of subparagraph (A) as having served 
in that grade for the period for which the person served in that 
position while in the next lower grade. The period credited may 
not include any period before the date on which the Senate provides 
advice and consent for the appointment of that person in the rec-
ommended grade. 
"(E) To the extent authorized by the Secretary of the military 
department concerned, a person who, after having been extended 
temporary Federal recognition as a reserve officer of the Army 
National Guard in a particular grade under section 308 of title 
32 or temporary Federal recognition as a reserve officer of the 
Air National Guard in a particular grade under such section, served 
in a position for which that grade is the minimum authorized 
grade may be credited for purposes of subparagraph (A) as having 
served in that grade for the period for which the person served 
in that position while extended the temporary Federal recognition, 
but only if the person was subsequently extended permanent Fed-
eral recognition as a reserve officer in that grade and also served 
in that position after being extended the permanent Federal recogni-
tion.". 
(b) EXCEPTION TO REQUIREMENT FOR RETENTION OF RESERVE 
OFFICERS UNTIL 
COMPLETION 
OF REQUIRED 
SERVICE.—Section 
12645(b)(2) of such title is amended by inserting "or a reserve 
active-status list" after "active-duty list". 
(c) TECHNICAL CORRECTION.—Section 14314(b)(2)(B) of such 
title is amended by striking out "of the Air Force". 
SEC. 545. REPORT ON NUMBER OF ADVISERS IN ACTIVE COMPONENT 
SUPPORT OF RESERVES PILOT PROGRAM. 
(a) REPORT ON NUMBER OF ACTIVE COMPONENT ADVISERS.— 
Not later than six months after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the Committee 
on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report setting forth 
the Secretary's determination as to the appropriate number of active 
component personnel to be assigned to serve as advisers to reserve 
components under section 414 of the National Defense Authoriza-
tion Act for Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note). 
If the Secretary's determination is that such number should be 
a number other than the required minimum number in effect under 
subsection (c) of such section, the Secretary shall include in the 
report an explanation providing the Secretary's justification for 
the number recommended. 
110 STAT. 2524 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(b) TECHNICAL AMENDMENT.—Section 414(a) of the National 
Defense Authorization Act for Fiscal Years 1992 and 1993 (10 
U.S.C. 12001 note) is amended by striking out "During fiscal years 
1992 and 1993, the Secretary of the Army shall institute" and 
inserting in lieu thereof 'The Secretary of the Army shall carry 
out". 
SEC. 546. SENSE OF CONGRESS AND REPORT REGARDING REEMPLOY-
MENT RIGHTS FOR MOBILIZED RESERVISTS EMPLOYED IN 
FOREIGN COUNTRIES. 
(a) SENSE OF CONGRESS.—Congress is concerned about the lack 
of reemplojnnent rights afforded Reserve component members who 
reside in foreign countries and either work for United States compa-
nies that maintain offices or operations in foreign countries or 
work for foreign employers. Being outside the jurisdiction of the 
United States, these employers are not subject to the provisions 
of chapter 43 of title 38, United States Code, known as the Uni-
formea 
Services Employment and Reemployment Rights Act 
(USERRA). The purpose of that Act is to provide statutory employ-
ment protections that include reinstatement, seniority, status, and 
rate of pay coverage for Reservists who are ordered to active duty 
for a specified period of time, including involuntary active duty 
in support of an operational contingency. While most Reserve 
members are afforded the protections of that Act (which covers 
reemployment rights in their civilian jobs upon completion of mili-
tary service), approximately 2,000 members of the Selected Reserve 
reside outside the United States and its territories and, not being 
guaranteed the job protection envisioned by the USERRA, are poten-
tially subject to reemployment problems after release from active 
duty. This situation poses a continuing personnel management chal-
lenge for the reserve components. 
(b) RECOGNITION OF PROBLEM.—Congress, while recognizing 
that foreign governments and companies located abroad, not being 
within the jurisdiction of the United States, cannot be required 
to comply with the provisions of the Uniformed Services Employ-
ment and Reemployment Rights Act, also recognizes that there 
is a need to provide assistance to Reservists in the situation 
described in subsection (a), both in the near term and the long 
term. 
(c) REPORT REQUIREMENT.—Not later than April 1, 1997, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report that sets forth rec-
ommended actions to help alleviate reemployment problems for 
Reservists who are employed outside the United States and its 
territories by United States companies that maintain offices or 
operations in foreign countries or by foreign employers. The report 
shall include recommendations on the assistance and support that 
may be required by other organizations of the Government, includ-
ing the Defense Attache Offices, the Department of Labor, and 
the Department of State. The report shall be prepared in consulta-
tion with the Secretary of State and the Secretary of Labor. 
SEC. 547. PAYMENT OF PREMIUMS UNDER MOBILIZATION INCOME 
INSURANCE PROGRAM. 
Section 12527(a) of title 10, United States Code, is amended— 
(1) in paragraph (1), by inserting "of the Selected Reserve" 
after "a member"; and 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2525 
(2) by striking out paragraph (2) and inserting in lieu 
thereof the following: 
"(2) The Secretary of Defense, in consultation with the Secretary Regulations. 
of Transportation, shall prescribe regulations which specify the 
procedures for pajonent of premiums by members of the Individual 
Ready Reserve and other members who do not receive pay on 
a monthly basis.". 
Subtitle F—Officer Education Programs 
SEC. 551. OVERSIGHT AND MANAGEMENT OF SENIOR RESERVE OFFI-
CERS' TRAINING CORPS PROGRAM. 
(a) ENROLLMENT PRIORITY TO BE CONSISTENT WITH PURPOSE 
OF PROGRAM.—(1) Section 2103 of title 10, United States Code, 
is amended by adding at the end the following new subsection: 
"(e) An educational institution at which a unit of the program 
has been established shall give priority for enrollment in the pro-
gram to students who are eligible for advanced training under 
section 2104 of this title.". 
(2) Section 2109 of such title is amended by adding at the 
end the following new subsection: 
"(c)(1) A person who is not qualified for, and (as determined 
by the Secretary concerned) will not be able to become qualified 
for, advanced training by reason of one or more of the requirements 
prescribed in paragraphs (1) through (3) of section 2104(b) of this 
title shall not be permitted to participate in— 
"(A) field training or a practice cruise under section 
2106(b)(6) of this title; or 
"(B) practical military training under subsection (a). 
"(2) The Secretary of the military department concerned may 
waive the limitation in paragraph (1) under procedures prescribed 
by the Secretary. Such procedures shall ensure uniform application 
of limitations and restrictions without regard to the reason for 
disqualification for advanced training.". 
(b) WEAR OF THE MILITARY UNIFORM.—Section 772(h) of such 
title is amended by inserting before the period at the end the 
following: "if the wear of such uniform is specifically authorized 
under regulations prescribed by the Secretary of the military depart-
ment concerned". 
SEC. 552. PROHIBITION ON REORGANIZATION OF ARMY ROTC CADET 
COMMAND OR TERMINATION OF SENIOR ROTC UNITS 
PENDING REPORT ON ROTC. 
(a) PROHIBITION.—(1) The Secretary of the Army may not Reports. 
reorganize or restructure the Reserve Officers Training Corps Cadet 
Command, and may not terminate any Senior Reserve Officer Train-
ing Corps unit identified in the document referred to in paragraph 
(2), until 180 days after the date on which the Secretary submits 
to the Committee on Armed Services of the Senate and the Commit-
tee on National Security of the House of Representatives the report 
described in subsection (b). 
(2) The document referred to in paragraph (1) is the Department 
of Defense document dated May 20, 1996, entitled "Information 
for Members of Congress concerning Senior Reserve Officer Training 
Corps (ROTC) Unit Closures". 
110 STAT. 2526 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(b) REPORT CONTENTS.—^The report referred to in subsection 
(a) is a report by the Secretary of the Army in which the Secretary— 
(1) describes the selection process used to identify the 
Reserve Officer Training Corps units of the Army to be termi-
nated; 
(2) lists the criteria used by the Army to select Reserve 
Officer Training Corps units for termination; 
(3) sets forth the specific ranking of each unit of the Reserve 
Officer Training Corps of the Army to be terminated as against 
all other such units; 
(4) sets forth the authorized and actual cadre staffing of 
each such unit for each fiscal year of the 10-fiscal ye£ir period 
ending with fiscal year 1996; 
(5) sets forth the production goals and performance evalua-
tions of each such unit for each fiscal year of the 10-fiscal 
year period ending with fiscal year 1996; 
(6) describes how cadets currently enrolled in the units 
referred to in paragraph (5) will be accommodated after the 
closure of such units; 
(7) describes the incentives to enhance the Reserve Officer 
Training Corps program that are provided by each of the col-
leges on the closure list; 
(8) includes the projected officer accession plan by source 
of commission for the active-duty Army, the Army Reserve, 
and the Army National Guard; and 
(9) describes whether the closure of any ROTC unit will 
adversely affect the recruitment of minority officer candidates. 
SEC. 553. PILOT PROGRAM TO TEST EXPANSION OF ROTC PROGRAM 
TO INCLUDE GRADUATE STUDENTS. 
(a) TEST PROGRAM.—Section 2107(c) of title 10, United States 
Code, is amended— 
(1) by inserting "(1)" after "(c)"; and 
(2) by adding at the end the following: 
"(2) The Secretary of Defense shall authorize the Secretaries 
of the military departments to carry out a test program to determine 
the desirability of enabling graduate students to participate in 
the financial assistance program under this section. As part of 
such test program, the Secretary of a military department may 
provide financial assistance, as described in paragraph (1), to a 
student enrolled in an advanced education program beyond the 
baccalaureate degree level if the student also is a cadet or mid-
shipman in an advanced training program. Not more than 15 per-
cent of the total number of scholarships awarded under this section 
in any year may be awarded under the test program. No scholarship 
may be awarded under the test program after September 30, 1999.". 
(b) AUTHORITY TO ENROLL IN ADVANCED TRAINING PROGRAM.— 
Paragraph (3) of section 2101 of title 10, United States Code, 
is amended by inserting "students enrolled in an advanced edu-
cation program beyond the baccalaureate degree level or to" after 
'instruction offered in the Senior Reserve Officers' Training Corps 
to". 
10 use 2107 
(c) REPORT TO CONGRESS.—^Not later than December 31, 1998, 
note. 
the Secretary of Defense shall submit to Congress a report on 
the experience to that date under the test program authorized 
under the amendment made by subsection (a)(2). The report shall 
include the Secretary's assessment of the effect of the test program 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2527 
on the Senior ROTC program and the Secretary's recommendation 
as to whether the authority under the test program should be 
made permanent. 
SEC. 554. DEMONSTRATION PROJECT FOR INSTRUCTION AND SUP- 10 USC 2111 
PORT OF ARMY ROTC UNITS BY MEMBERS OF THE ARMY 
note. 
RESERVE AND NATIONAL GUARD. 
(a) DEMONSTRATION PROJECT REQUIRED.—The Secretary of the 
Army shall carry out a demonstration project in order to assess 
the feasibility and advisability of providing instruction and similar 
support to units of the Senior Reserve Officers' Training Corps 
of the Army through members of the Army Reserve (including 
members of the Individual Ready Reserve) and members of the 
Army National Guard. 
(b) PROJECT REQUIREMENTS.—(1) The Secretary shall carry out 
the demonstration project at at least one institution of higher 
education. 
(2) In order to enhance the value of the project, the Secretary 
may take actions to ensure that members of the Army Reserve 
and the Army National Guard provide instruction and support 
under the project in a variety of innovative ways. 
(c) INAPPLICABILITY OF LIMITATION ON RESERVES IN SUPPORT 
OF ROTC.—The assignment of a member of the Army Reserve 
or the Army National Guard to provide instruction or support 
under the demonstration project shall not be treated as an assign-
ment of the member to duty with a unit of a Reserve Officer 
Training Corps program for purposes of section 12321 of title 10, 
United States Code. 
(d) REPORTS TO CONGRESS.—^Not later than February 1 in each 
of 1998 and 1999, the Secretary shall submit to Congress a report 
assessing the activities under the demonstration project during 
the preceding year. The report submitted in 1999 shall include 
the Secretary's recommendation as to the advisability of continuing 
or expanding the authority for the project. 
(e) TERMINATION.—^The authority of the Secretary to carry out 
the demonstration project shall expire three years after the date 
of the enactment of this Act. 
SEC. 555. EXTENSION OF MAXIMUM AGE FOR APPOINTMENT AS A 
CADET OR MIDSHIPMAN IN THE SENIOR RESERVE OFFI-
CERS' TRAINING CORPS AND THE SERVICE ACADEMIES. 
(a) SENIOR RESERVE 
OFFICERS' TRAINING CORPS.—Sections 
2107(a) and 2107a(a) of title 10, United States Code, are amended— 
(1) by striking out "25 years of age" and inserting in lieu 
thereof "27 years of age"; and 
(2) by striking out "29 years of age" and inserting in lieu 
thereof "30 years of age". 
(b) UNITED STATES MILITARY ACADEMY.—Section 4346(a) of 
such title is amended by striking out "twenty-second birthday" 
and inserting in lieu thereof "twenty-third birthday". 
(c) UNITED STATES NAVAL ACADEMY.—Section 6958(a)(1) of such 
title is amended by striking out "twenty-second birthday" and 
inserting in lieu thereof "twenty-third birthday". 
(d) UNITED STATES AIR FORCE ACADEMY.—Section 9346(a) of 
such title is amended by striking out "twenty-second birthday" 
and inserting in lieu thereof "twenty-third birthday". 
110 STAT. 2528 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 556. EXPANSION OF EUGIBILITY FOR EDUCATION BENEFITS TO 
INCLUDE CERTAIN RESERVE OFFICERS' TRAINING CORPS 
(ROTO PARTICIPANTS. 
(a) ACTIVE DUTY SERVICE.—Section 3011(c) of title 38, United 
States Code, is amended— 
(1) by striking out "or upon completion of a program of 
educational assistance under section 2107 of title 10" in para-
graph (2); and 
(2) by adding at the end the following: 
"(3) An individual who after December 31, 1976, receives a 
commission as an officer in the Armed Forces upon completion 
of a program of educational assistance under section 2107 of title 
10 is not eligible for educational assistance under this section 
if the individual enters on active duty— 
"(A) before October 1, 1996; or 
"(B) gifter September 30, 1996, and while participating in 
such program received more than $2,000 for each year of such 
participation.". 
(b) SELECTED RESERVE.—Section 3012(d) of title 38, United 
States Code, is amended— 
(1) by striking out "or upon completion of a program of 
educational assistance under section 2107 of title 10" in para-
graph (2); and 
(2) by adding at the end the following: 
"(3) An individual who after December 31, 1976, receives a 
commission as an officer in the Armed Forces upon completion 
of a program of educational assistance under section 2107 of title 
10 is not eligible for educational assistance under this section 
if the individual enters on active duty— 
"(A) before October 1, 1996; or 
"(B) after September 30, 1996, and while participating in 
such program received more than $2,000 for each year of such 
participation.". 
SEC. 557. COMPTROLLER GENERAL REPORT ON COST AND POLICY 
IMPLICATIONS OF PERMITTING UP TO FIVE PERCENT OF 
SERVICE 
ACADEMY 
GRADUATES 
TO 
BE 
ASSIGNED 
DIRECTLY TO RESERVE DUTY UPON GRADUATION. 
(a) REPORT REQUIRED.—The Comptroller General of the United 
States shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report providing an analysis of the cost implica-
tions, and the policy implications, of permitting up to five percent 
of each graduating class of each of the service academies to be 
placed, upon graduation and commissioning, in an active status 
in the appropriate reserve component (without a minimum period 
of obligated active duty service), with a corresponding increase 
in the number of ROTC graduates each year who are permitted 
to serve on active duty upon commissioning. 
(b) 
INFORMATION 
ON 
CURRENT 
ACADEMY 
GRADUATES 
IN 
RESERVE COMPONENTS.—^The Comptroller General shall include in 
the report information (shown in the aggregate and separately 
for each of the Armed Forces and for graduates of each service 
academy) on— 
(1) the number of academy graduates who at the time 
of the report are serving in an active status in a reserve 
component; and 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2529 
(2) within the number under paragraph (1), the number 
for each reserve component and, of those, the number within 
each reserve component who are on active duty under section 
12301(d) of title 10, United States Code, for the purpose of 
organizing, administering, recruiting, instructing, or training 
the reserve components. 
(c) SUBMISSION OF REPORT.—^The report shall be submitted 
not later than six months after the date of the enactment of this 
Act. 
(d) SERVICE ACADEMIES.—For purposes of this section, the term 
"service academies" means— 
(1) the United States Military Academy; 
(2) the United States Naval Academy; and 
(3) the United States Air Force Academy. 
Subtitle G—Decorations and Awards 
SEC. 561. AUTHORITY FOR AWARD OF MEDAL OF HONOR TO CERTAIN 
AFRICAN AMERICAN SOLDIERS WHO SERVED DURING 
WORLD WAR II. 
(a) INAPPLICABILITY OF TIME LIMITATIONS.—Notwithstanding 
the time limitations in section 3744(b) of title 10, United States 
Code, or any other time limitation, the President may award the 
Medal of Honor to the persons specified in subsection (b), each 
of whom has been found by the Secretary of the Army to have 
distinguished himself conspicuously by gallantry and intrepidity 
at the risk of his life above and beyond the call of duty while 
serving in the United States Army during World War II. 
(b) PERSONS ELIGIBLE TO RECEIVE THE MEDAL OF HONOR.— 
The persons referred to in subsection (a) are the following: 
(1) Vernon J. Baker, who served as a first lieutenant in Vemon J. Baker, 
the 370th Infantry Regiment, 92nd Infantry Division. 
(2) Edward A. Carter, who served as a staff sergeant in 
the 
56th Armored 
Infantry 
Battalion, Twelfth 
Armored 
Division. 
(3) John R. Fox, who served as a first lieutenant in the 
366th Infantry Regiment, 92nd Infantry Division. 
(4) Willy F. James, Jr., who served as a private first class 
in the 413th Infantry Regiment, 104th Infantry Division. 
(5) Ruben Rivers, who served as a staff sergeant in the 
761st Tank Battalion. 
(6) Charles L. Thomas, who served as a first lieutenant 
in the 614th Tank Destroyer Battalion. 
(7) George Watson, who served as a private in the 29th 
Quartermaster Regiment. 
(c) POSTHUMOUS AWARD.—The Medal of Honor may be awarded 
under this section posthumously, as provided in section 3752 of 
title 10, United States Code. 
(d) PRIOR AWARD.—The Medal of Honor may be awarded under 
this section for service for which a Distinguished-Service Cross, 
or other award, has been awarded. 
SEC. 562. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN 
DECORATIONS TO SPECIFIED PERSONS. 
(a) WAIVER OF TIME LIMITATION.—Any limitation established 
by law or policy for the time within which a recommendation 
Edward A. 
Carter. 
John R. FOX. 
WiUy F. James, 
Jr. 
Ruben Rivers. 
Charles L. 
Thomas. 
George Watson. 
110 STAT. 2530 
PUBLIC LAW 104-201—SEPT. 23, 1996 
for the award of a military decoration or award must be submitted 
shall not apply in the case of awards of decorations as described 
in subsection (b), the award of each such decoration having been 
determined by the Secretary of the Navy to be warranted in accord-
ance with section 1130 of title 10, United States Code. 
(b) DISTINGUISHED FLYING CROSS.—Subsection (a) applies to 
awards of the Distinguished Flying Cross for service during World 
War II as follows: 
(1) FIRST AWARD.—First award, for completion of at least 
20 qualifying combat missions, to the following members and 
former members of the Armed Forces: 
Vemard V. Aiken of Wilmington, Vermont. 
Ira V. Babcock of Dothan, Georgia. 
George S. Barlow of Grafton, Virginia. 
Earl A. Bratton of Bodega Bay, California. 
Travis C. Cork of Leesburg, Florida. 
Herman C. Edwards of Johns Island, South Carolina. 
Norman J. Ehr of Kiel, Wisconsin. 
James M. Fitzgerald of Anchorage, Alaska. 
Raymond C. Gordon of Sherbom, Massachusetts. 
Paul L. Hitchcock of Raleigh, North Carolina. 
Harold H. Hottle of Hillsboro, Ohio. 
Samuel M. Keith of Anderson, South Carolina. 
Stanley J. Ksiadz of Cheektowaga, New York. 
Otis Lancaster of Wyoming, Michigan. 
Robert W. Lorette of Wilton, New Hampshire. 
John B. McCabe of Biglerville, Pennsylvania. 
James P. Merriman of Midland, Texas. 
The late Michael L. Michalak, formerly of Akron, 
New York. 
The late Edward J. Naparkowsky, formerly of Hartford, 
Connecticut. 
Pete G. Nicora of Warren, Ohio. 
Stanley J. Orlowski of Jackson, Michigan. 
Raymond A. Peischl of Allentown, Pennsylvania. 
A. Jerome Pfeiffer of Racine, Wisconsin. 
Duane L. Rhodes of Earp, California. 
Frank V. Roach of Bloomfield, New Jersey. 
Arnold V. Rosekrans of Horseheads, New York. 
Joseph E. Seaman, Jr. of Bordentown, New Jersey. 
Richard F. Shumaker of Hilliard, Ohio. 
Luther E. Thomas of Panama City, Florida. 
Merton S. Ward of South Hamilton, Massachusetts. 
Simon L. Webb of Magnolia, Mississippi. 
Jerry W. Webster of Leander, Texas. 
(2) SECOND AWARD.—Second award, for completion of at 
least 40 qualifying combat missions, to the following members 
and former members of the Armed Forces: 
Arthur C. Adair of Grants Pass, Oregon. 
Robert B. Carnes of West Yarmouth, Massachusetts. 
Daniel K. Connors of Hampton, New Hampshire. 
Glen E. Danielson of Whittier, California. 
Ralph J. Deceuster of Dover, Ohio. 
Albert P. Emsley of Bothell, Washington. 
Urbain J. Foumier of Houma, Louisiana. 
Prescott C. Jernegan of Hemet, California. 
Stephen K. Johnson of Englewood, Florida. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2531 
Warren E. Johnson of Vista, California. 
Elbert J. Kimble of San Francisco, California. 
George W. Knauff of Monument, Colorado. 
John W. Lincoln of Rockland, Massachusetts. 
Alan D. Marker of Sonoma, California. 
Joseph J. Oliver of White Haven, Pennsylvania. 
Shefield Phelps of Seattle, Washington. 
John B. Tagliapiri of St. Helena, California. 
Dewilles A.H.W. 
Schwartz 
of Watertown, 
South 
Dakota. 
Ray B. Stiltner of Centralia, Washington. 
(3) THIRD AWARD.—^Third award, for completion of at least 
60 qualifying combat missions, to the following members and 
former members of the Armed Forces: 
Glenn Bowers of Dillsburg, Pennsylvania. 
Arthur C. Casey of Irving, California. 
Robert J. Larsen of Gulf Breeze, Florida. 
David Mendoza of McAllen, Texas. 
William A. Nickerson of Portland, Oregon. 
Maurice F. Smith of Sequim, Washington. 
(4) FOURTH AWARD.—^Fourth award, for completion of at 
least 80 qualifying combat missions, to the following members 
and former members of the Armed Forces: 
Robert Bair of Ontario, California. 
Arvid L. Kretz of Santa Rosa, California. 
George E. McClane of Cocoa Beach, Florida. 
Orville R. Swick of Issaquah, Washington. 
(5) FIFTH AWARD.—Fifth award, for completion of at least 
100 qualifying combat missions, to the following members and 
former members of the Armed Forces: 
William A. Baldwin of San Clemente, California. 
George Bobb of Blackwood, New Jersey. 
John R. Conrad of Hot Springs, Arkansas. 
Herbert R. Hetrick of Roaring Springs, Pennsylvania. 
William L. Wells of Cordele, Georgia. 
(6) SIXTH AWARD.—Sixth award, for completion of at least 
120 qualifying combat missions, to Richard L. Murray of Dallas, 
Texas. 
SEC. 563. REPLACEMENT OF CERTAIN AMERICAN THEATER CAM-
PAIGN RIBBONS. 
(a) REPLACEMENT RIBBONS.—^The Secretary of the Army, pursu-
ant to section 3751 of title 10, United States Code, may replace 
any World War II decoration known as the American Theater 
Campaign Ribbon that was awarded to a person listed in the 
order described in subsection (b). 
(b) RIBBONS PROPERLY AWARDED.—^Any person listed in the 
document titled "General Order Number 1", issued by the Third 
Auxiliary Surgical Group, APO 647, United States Army, dated 
February 1, 1943, shall be considered to have been properly awarded 
the American Theater Campaign Ribbon for service during World 
War II. 
29-194 O - 96 - 26 : QL 3 Part 3 
110 STAT. 2532 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Subtitle H—Other Matters 
10 u s e 113 note. 
SEC. 571. HATE CRIMES IN THE MILITARY. 
(a) HUMAN RELATIONS TRAINING.—(1) The Secretary of Defense 
shall ensure that the Secretary of each military department con-
ducts ongoing programs for human relations training for all mem-
bers of the Armed Forces under the jurisdiction of the Secretary. 
Matters to be covered by such training include race relations, equal 
opportunity, opposition to gender discrimination, and sensitivity 
to "hate group" activity. Such training shall be provided during 
basic training (or other initial military training) and on a regular 
basis thereafter. 
(2) The Secretary of Defense shall also ensure that unit 
commanders are aware of their responsibilities in ensuring that 
impermissible activity based upon discriminatory motives does not 
occur in units under their command. 
(b) INFORMATION TO BE PROVIDED TO PROSPECTIVE RECRUITS.— 
The Secretary of Defense shall ensure that each individual prepar-
ing to enter an officer accession program or to execute an original 
enlistment agreement is provided information concerning the mean-
ing of the oath of office or oath of enlistment for service in the 
Armed Forces in terms of the equal protection and civil liberties 
guarantees of the Constitution, and each such individual shall 
be informed that if supporting those guarantees is not possible 
personally for that individual, then that individual should decline 
to enter the Armed Forces. 
(c) ANNUAL SURVEY.—(1) Section 451 of title 10, United States 
Code, is amended to read as follows: 
''§451. Race relations, gender discrimination, and 
hate 
group activity: annual survey and report 
"(a) ANNUAL SURVEY.—^The Secretary of Defense shall carry 
out an annual survey to measure the state of racial, ethnic, and 
gender issues and discrimination among members of the Armed 
Forces serving on active duty and the extent (if any) of activity 
among such members that may be seen as so-called 'hate group' 
activity. The survey shall solicit information on the race relations 
and gender relations climate in the Armed Forces, including— 
"(1) indicators of positive and negative trends of relations 
among all racial and ethnic groups and between the sexes; 
"(2) the effectiveness of Department of Defense policies 
designed to improve race, ethnic, and gender relations; and 
"(3) the effectiveness of current processes for complaints 
on and investigations into racial, ethnic, and gender discrimina-
tion. 
"(b) IMPLEMENTING ENTITY.—^The Secretary shall carry out each 
annual survey through the entity in the Department of Defense 
known as the Armed Forces Survey on Race/Ethnic Issues. 
"(c) REPORTS TO CONGRESS.—^Upon completion of each annual 
survey under subsection (a), the Secretary shall submit to Congress 
a report containing the results of the survey.". 
(2) The item relating to such section in the table of sections 
at the beginning of chapter 22 of such title is amended to read 
as follows: 
"451. Race relations, gender discrimination, and hate group activity: annual survey 
and report.". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2533 
SEC. 572. DISABILITY COVERAGE FOR MEMBERS GRANTED EXCESS 
LEAVE FOR EDUCATIONAL OR EMERGENCY PURPOSES. 
(a) ELIGIBILITY FOR RETIREMENT.—Section 1201 of title 10, 
United States Code, is amended— 
(1) by striking out the matter preceding paragraph (1) 
and inserting in lieu thereof the following: 
"(a) RETIREMENT.—^Upon a determination by the Secretary con-
cerned that a member described in subsection (c) is unfit to perform 
the duties of the member's office, grade, rank, or rating because 
of physical disability incurred while entitled to basic pay or while 
absent as described in subsection (c)(3), the Secretary may retire 
the member, with retired pay computed under section 1401 of 
this title, if the Secretary also makes the determinations with 
respect to the member and that disability specified in subsection 
(b). 
"(b) REQUIRED DETERMINATIONS OF DISABILITY.—Determina-
tions referred to in subsection (a) are determinations by the Sec-
retary that—"; and 
(2) by adding at the end the following: 
"(c) ELIGIBLE MEMBERS.—^This section and sections 1202 and 
1203 of this title apply to the following members: 
"(1) A member of a regular component of the armed forces 
entitled to basic pay. 
"(2) Any other member of the armed forces entitled to 
basic pay who has been called or ordered to active duty (other 
than for training under section 10148(a) of this title) for a 
period of more than 30 days. 
"(3) Any other member of the armed forces who is on 
active duty but is not entitled to basic pay by reason of section 
502(b) of title 37 due to authorized absence (A) to participate 
in an educational program, or (B) for an emergency purpose, 
as determined by the Secretary concerned.". 
(b) ELIGIBIUTY FOR PLACEMENT ON TEMPORARY DISABILITY 
RETIREMENT LIST.—Section 1202 of title 10, United States Code, 
is amended by striking out "a member of a regular component" 
and all that follows through "more than 30 days," and inserting 
in lieu thereof "a member described in section 1201(c) of this title". 
(c) ELIGIBILITY FOR SEPARATION.—Section 1203 of title 10, 
United States Code, is amended by striking out the matter preced-
ing paragraph (1) and inserting in lieu thereof the following: 
"(a) SEPARATION.—Upon a determination by the Secretary con-
cerned that a member described in section 1201(c) of this title 
is unfit to perform the duties of the member's office, grade, rank, 
or rating because of physical disability incurred while entitled to 
basic pay or while absent as described in section 1201(c)(3) of 
this title, the member may be separated from the member's armed 
force, with severance pay computed under section 1212 of this 
title, if the Secretary also makes the determinations with respect 
to the member and that disability specified in subsection (b). 
"(b) REQUIRED DETERMINATIONS OF DISABILITY.—Determina-
tions referred to in subsection (a) are determinations by the 
Secretary that—". 
(d) EFFECTIVE DATE.—^The amendments made by this section Applicability, 
shall take effect on the date of the enactment of this Act 
10 USC1201 
and shall apply with respect to physical disabilities incurred on ^°^' 
or after such late. 
110 STAT. 2534 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 573. CLARIFICATION 
OF AUTHORITY OF A RESERVE 
JUDGE 
ADVOCATE TO ACT AS A MILITARY NOTARY PUBLIC WHEN 
NOT IN A DUTY STATUS. 
Section 1044a(b) of title 10, United States Code, is amended— 
(1) in paragraph (1), by striking out "on active duty or 
performing inactive-duty training" and inserting in lieu thereof 
", including reserve judge advocates when not in a duty status"; 
(2) in paragraph (3), by striking out "adjutants on active 
duty or performing inactive-duty training" and inserting in 
lieu thereof "adjutants, including reserve members when not 
in a duty status"; and 
(3) in paragraph (4), by striking out "persons on active 
duty or performing inactive-duty training" and inserting in 
lieu thereof "members of the armed forces, including reserve 
members when not in a duty status,". 
SEC. 574. PANEL ON JURISDICTION OF COURTS-MARTIAL FOR THE 
NATIONAL GUARD WHEN NOT IN FEDERAL SERVICE. 
(a) ESTABLISHMENT.—^The Secretary of Defense shall establish 
a panel to review the various authorities for court-martial and 
nonjudicial punishment jurisdiction for the National Guard not 
in Federal service and the use of those authorities. 
(b) MEMBERSHIP.—The Secretary shall appoint the members 
of the panel so as to ensure representation of the following: 
(1) The State Adjutants General of the National Guard. 
(2) The State Attorneys Greneral. 
(3) The Joint Service Committee on Military Justice of 
the Department of Defense. 
(c) DUTIES.—Matters reviewed by the panel shall include the 
following: 
(1) The extent of the use of court-martial and nonjudicisd 
punishment authority for the National Guard not in Federal 
service. 
(2) The extent to which the authority used is— 
(A) authority under title 32, United States Code; or 
(B) authority under State law. 
(d) REPORT.—(1) Not later than February 1, 1997, the panel 
shall submit a report on the panel's findings and conclusions to 
the Secretary of Defense. 
(2) The report shall include recommended legislation for 
amending title 32, United States Code— 
(A) to increase the uniformity in State use of courts-martial 
and nonjudicial punishment for the National Guard when not 
in Federal service; and 
(B) to achieve increased comparability between the court-
martial and nonjudicial punishment procedures that 
are 
applicable to the National Guard not in Federal service and 
the court-martial and nonjudicial punishment procedures that 
are applicable under the Uniform Code of Military Justice 
to the National Guard in Federal service. 
(e) SUBMISSION OF REPORT TO CoNGRESS.^Not later than 
March 1, 1997, the Secretary of Defense shall submit to Congress 
the report of the panel under subsection (d) together with the 
views of the Secretary regarding the report and the matters covered 
in the report. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2535 
SEC. 575. AUTHORITY TO EXPAND LAW ENFORCEMENT PLACEMENT 
PROGRAM TO INCLUDE FIREFIGHTERS. 
Section 1152(g) of title 10, United States Code, is amended— 
(1) by striking out "(g) CONDITIONAL EXPANSION OF PLACE-
MENT TO INCLUDE FIREFIGHTERS.—(1) Subject to paragraph 
(2), the" and inserting in Ueu thereof "(g) AUTHORITY TO EXPAND 
PLACEMENT TO INCLUDE FIREFIGHTERS.—^The"; and 
(2) in paragraph (2)— 
(A) by striking out the first sentence; and 
(B) in the second sentence, by inserting "authorized 
by this subsection" after "expansion". 
SEC. 576. IMPROVEMENTS TO PROGRAM TO ASSIST SEPARATED MILI-
TARY AND CIVILIAN PERSONNEL TO OBTAIN EMPLOYMENT 
AS TEACHERS OR TEACHERS' AIDES. 
(a) PROGRAM FOR SEPARATED MEMBERS.—(1) Section 1151 of 
title 10, United States Code, is amended— 
(A) in subsection (f)(2), by striking out "five school years" 
in subparagraphs (A) and (B) and inserting in lieu thereof 
"two school years"; and 
(B) in subsection (h)(3)(A), by striking out "five consecutive 
school years" and inserting in lieu thereof "two consecutive 
school years". 
(2) Subsection (g)(2) of such section is amended— 
(A) by striking out the comma afi;er "section 1174a of 
this title" and inserting in lieu thereof "or"; and 
(B) by striking out ", or retires pursuant to the authority 
provided in section 4403 of the National Defense Authorization 
Act for fiscal year 1993 (Public Law 102-484; 10 U.S.C. 1293 
note)". 
(3) Subsection (h)(3)(B) of such section is amended— 
(A) in clause (i), by striking out "$25,000" and inserting 
in lieu thereof "$ 17,000"; 
(B) in clause (ii)— 
(i) by striking out "40 percent" and inserting in lieu 
thereof "25 percent"; and 
(ii) by striking out "$10,000" and inserting in lieu 
thereof "$8,000"; and 
(C) by striking out clauses (iii), (iv), and (v). 
(b) SEPARATED CIVILIAN EMPLOYEES OF THE DEPARTMENT OF 
DEFENSE.—Section 1598(d)(2) of such title is amended by striking 
out "five school years" in subparagraphs (A) and (B) and inserting 
in lieu thereof "two school years". 
(c) 
DISPLACED 
DEPARTMENT 
OF 
DEFENSE 
CONTRACTOR 
EMPLOYEES.—Section 2410j(f)(2) of such title is amended by striking 
out "five school years" in subparagraphs (A) and (B) and inserting 
in lieu thereof "two school years". 
(d) SAVINGS PROVISION.—The amendments made by this section 
lo use ii5i 
do not £iffect obligations under agreements entered into in accord- ^^ote. 
ance with section 1151, 1598, or 2410j of title 10, United States 
Code, before the date of the enactment of this Act. 
110 STAT. 2536 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 577. RETIREMENT AT GRADE TO WHICH SELECTED FOR PRO-
MOTION WHEN A PHYSICAL DISABILITY IS FOUND AT ANY 
PHYSICAL EXAMINATION. 
Section 1372 of title 10, United States Code, is amended by 
striking out "his physical examination for promotion" in paragraphs 
(3) and (4) and inserting in lieu thereof "a physical examination". 
SEC. 578. REVISIONS TO MISSING PERSONS AUTHORITIES. 
(a) REPEAL OF APPLICABILITY OF AUTHORITIES TO DEPARTMENT 
OF DEFENSE CIVILIAN EMPLOYEES AND CONTRACTOR EMPLOYEES.— 
(1) Section 1501 of title 10, United States Code, is amended— 
(A) in subsection (c)— 
(i) by striking out "applies in the case of and all 
that follows through "(1) Any member" and inserting in 
lieu thereof "applies in the case of £iny member"; and 
(ii) by striking out paragraph (2); and 
(B) by striking out subsection (f). 
(2) Section 1503(c) of such title is amended— 
(A) in paragraph (1), by striking out "one individual 
described in paragraph (2)" and inserting in lieu thereof "one 
military officer"; 
(B) by striking out paragraph (2); and 
(C) by redesignating paragraphs (3) and (4) as paragraphs 
(2) and (3), respectively. 
(3) Section 1504(d) of such title is amended— 
(A) by striking out the text of paragraph (1) and inserting 
in lieu thereof the following new text: "A board appointed 
under this section shall be composed of at least three members 
who are officers having the grade of major or lieutenant com-
mander or above."; and 
(B) in paragraph (4), by striking out "section 1503(c)(4)" 
and inserting in lieu thereof "section 1503(c)(3)". 
(4) Paragraph (1) of section 1513 of such title is amended 
to read as follows: 
"(1) The term 'missing person' means a member of the 
armed forces on active duty who is in a missing status.". 
(b) REPORT ON PRELIMINARY ASSESSMENT OF STATUS.—(1) Sec-
tion 1502 of such title is amended— 
(A) in subsection (a)(2)— 
(i) by striking out "48 hours" and inserting in lieu 
thereof"10 days"; and 
(ii) by striking out "theater component commander with 
jurisdiction over the missing person" and inserting in lieu 
thereof "Secretary concerned"; 
(B) by striking out subsection (b); 
(C) by redesignating subsection (c) as subsection (b); and 
(D) in subsection (b), as so redesignated, by striking out 
the second sentence. 
(2) Section 1503(a) of such title is amended by striking out 
"section 1502(b)" and inserting in lieu thereof "section 1502(a)". 
(3) Section 1513 of such title is amended by striking out para-
graph (8). 
(c) FREQUENCY OF SUBSEQUENT REVIEWS.—Subsection (b) of 
section 1505 of such title is amended to read as follows: 
"(b) FREQUENCY OF SUBSEQUENT REVIEWS.—^The Secretary con-
cerned shall conduct inquiries into the whereabouts and status 
of a person under subsection (a) upon receipt of information that 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2537 
may result in a change of status of the person. The Secretary 
concerned shall appoint a board to conduct such inquiries.". 
(d) 
REPEAL 
OF 
STATUTORY 
PENALTIES 
FOR 
WRONGFUL 
WITHHOLDING OF INFORMATION.—Section 1506 of such title is 
amended— 
(1) by striking out subsection (e); and 
(2) by redesignating subsection (f) as subsection (e). 
(e) INFORMATION TO ACCOMPANY RECOMMENDATION OF STATUS 
OF DEATH.—Section 1507(b) of such title is amended by striking 
out paragraphs (3) and (4). 
(f) SCOPE OF PREENACTMENT REVIEW.—(1) Section 1509 of such 
title is amended— 
(A) by striking out subsection (c); and 
(B) by redesignating subsection (d) as subsection (c). 
(2)(A) The heading of such section is amended by striking 
out", special interest". 
(B) The item relating to such section in the table of sections 
at the beginning of chapter 76 of such title is amended by striking 
out", special interest". 
Subtitle I—Commissioned Corps of the 
Public Health Service 
SEC. 581. APPLICABILITY TO PUBLIC HEALTH SERVICE OF PROHIBI-
TION ON CREDITING CADET OR MIDSHIPMEN SERVICE AT 
THE SERVICE ACADEMIES. 
(a) PROHIBITION ON COUNTING ENLISTED SERVICE PERFORMED 
WHILE AT SERVICE ACADEMY.—Subsection (a) of section 971 of title 
10, United States Code, is amended by inserting before the period 
at the end the following: "or an officer in the Commissioned Corps 
of the Public Health Service". 
(b) PROHIBITION ON COUNTING SERVICE AS A CADET OR MID-
SHIPMAN.—Subsection (b) of such section is amended to read as 
follows: 
"(b) PROHIBITION ON COUNTING SERVICE AS A CADET OR MID-
SHIPMAN.—In computing length of service for any purpose, service 
as a cadet or midshipman may not be credited to any of the 
following officers: 
"(1) An officer of the Navy or Marine Corps. 
"(2) A commissioned officer of the Army or Air Force. 
"(3) An officer of the Coast Guard. 
"(4) An officer in the commissioned corps of the Public 
Health Service.". 
(c) TECHNICAL AMENDMENTS.—(1) Such section is further 
amended by adding at the end the following new subsection: 
"(c) SERVICE AS A CADET OR MIDSHIPMAN DEFINED.—In this 
section, the term 'service as a cadet or midshipman' means— 
"(1) service as a cadet at the United States Military 
Academy, United States Air Force Academy, or United States 
Coast Guard Academy; or 
"(2) service as a midshipman at the United States Naval 
Academy.". 
(2) Subsection (a) of such section is further amended— 
(A) by inserting "PROHIBITION ON COUNTING ENLISTED 
SERVICE PERFORMED WHILE AT SERVICE ACADEMY OR IN NAVAL 
RESERVE.—" after "(a)"; and 
110 STAT. 2538 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(B) by striking out "while also serving" and all that follows 
through "Naval Academy or" and inserting in lieu thereof "while 
also performing service as a cadet or midshipmsin or serving 
as a midshipman". 
(3) The heading of such section, and the item relating to such 
section in the table of sections at the beginning of chapter 49 
of such title, are amended by striking out the seventh word. 
SEC. 582. 
EXCEPTION TO STRENGTH LIMITATIONS FOR PUBLIC 
HEALTH 
SERVICE 
OFFICERS 
ASSIGNED 
TO 
THE 
DEPART-
MENT 
OF 
DEFENSE. 
Section 206 of the Public Health Service Act (42 U.S.C. 207) 
is amended by adding at the end the 'following new subsection: 
"(f) In computing the maximum number of commissioned offi-
cers of the Public Health Service authorized by law or administra-
tive determination to serve on active duty, there may be excluded 
from such computation officers who are assigned to duty in the 
Department of Defense.". 
SEC. 583. AUTHORITY TO PROVIDE LEGAL ASSISTANCE TO PUBUC 
HEALTH SERVICE OFFICERS. 
(a) LEGAL ASSISTANCE AVAILABLE.—Subsection (a) of section 
1044 of title 10, United States Code, is amended by striking out 
paragraph (3) and inserting in lieu thereof the following: 
"(3) Officers of the commissioned corps of the Public Health 
Service who are on active duty or entitled to retired or equiva-
lent pay. 
"(4) Dependents of members and former members described 
in paragraphs (1), (2), and (3).". 
(b) LIMITATION ON ASSISTANCE.—Subsection (c) of such section 
is amended— 
(1) by striking out "armed forces" and inserting in lieu 
thereof "uniformed services described in subsection (a)"; and 
(2) by inserting "such" after "dependent of. 
(c) CLARIFYING AMENDMENTS.—Subsection (a) of such section 
is further amended by striking out "under his jurisdiction" in para-
graphs (1) and (2). 
(d) STYLISTIC AMENDMENTS.—Subsection (a) of such section is 
further amended— 
(1) in the matter preceding paragraph (1), by striking out 
"to—" and inserting in lieu thereof "to the following persons:"; 
(2) by capitalizing the first letter of the first word of para-
graphs (1) and (2); 
(3) by striking out the semicolon at the end of paragraph 
(1) and inserting in lieu thereof a period; and 
(4) by striking out "; and" at the end of paragraph (2) 
and inserting in lieu thereof a period. 
TITLE VI—COMPENSATION AND OTHER 
PERSONNEL BENEFITS 
Subtitle A—Pay and Allowances 
Sec. 601. Military pay raise for fiscal year 1997. 
Sec. 602. Adjustment of rate of cadet and midshipman pay. 
Sec. 603. Pay of senior noncommissioned officers while hospitalized. 
Sec. 604. Availability of basic allowance for quarters for certain members without 
dependents who serve on sea duty. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2539 
Sec. 605. Uniform applicability of discretion to deny an election not to occupy 
Government quarters. 
Sec. 606. Establishment of minimum monthly amount of variable housing allow-
ance for high housing cost areas. 
Sec. 607. Family separation allowance for members separated by military orders 
from spouses who are members. 
Sec. 608. Waiver of time limitations for claim for pay and allowances. 
Subtitle B—^Bonuses and Special and Incentive Pays 
Sec. 611. One-year extension of certain bonuses and special pay authorities for 
Reserve forces. 
Sec. 612. One-year extension of certain bonuses and special pay authorities for 
nurse officer candidates, registered nurses, and nurse anesthetists. 
Sec. 613. One-year extension of authorities relating to payment of other bonuses 
and special pays. 
Sec. 614. Special pay for certain PubUc Health Service officers. 
Sec. 615. Special mcentives to recruit and reteiin dental officers. 
Sec. 616. Foreign language proficiency pay for Public Health Service and National 
Oceanic and Atmospheric Administration officers. 
Subtitle C—^Travel and Transportation Allowances 
Sec. 621. Allowance in connection with shipping motor vehicle at Government 
expense. 
Sec. 622. Dislocation allowance at a rate equal to two and one-half months basic 
allowance for quarters. 
Sec. 623. Allowance for travel performed in connection with leave between consecu-
tive overseas tours. 
Sec. 624. Funding for transportation of household effects of Pubhc Health Service 
officers. 
Subtitle D—^Retired Pay, Survivor Benefits, and Related Matters 
Sec. 631. Effective date for military retiree cost-of-living adjustment for fiscal year 
1998. 
Sec. 632. Clarification of initial computation of retiree COLAs after retirement. 
Sec. 633. Suspension of payment of retired pay of members who are absent from 
the United States to avoid prosecution. 
Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute. 
Sec. 635. Increases in Survivor Benefit Plan contributions to be effective conciu:-
rently with payment of retired pay cost-of-Uving increases. 
Sec. 636. Amendments to the Uniformed Services Former Spouses' Protection Act. 
Sec. 637. Prevention of circumvention of covut order by waiver of retired pay to 
enhance civil service retirement annuity. 
Sec. 638. Administration of benefits for so-called minimum income widows. 
Subtitle E^-Other Matters 
Sec. 651. Discretionary allotment of pay, including retired or retainer pay. 
Sec. 652. Reimbursement for adoption expenses incurred in adoptions through 
W
private placements, 
aiver of recoupment of amounts withheld for tax purposes from certain 
separation pay. 
Sec. 654. Technical correction clarifying limitation on furnishing clothing or allow-
ances for enlisted National Guard technicians. 
Sec. 655. Technical correction to prior authority for payment of back pay to certain 
persons. 
Sec. 656. Compensation for persons awarded prisoner of war medal who did not 
previously receive compensation as a prisoner of war. 
Sec. 657. Pajnnents to certain persons captured and interned by North Vietnam. 
Subtitle A—Pay and Allowances 
SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1997. 
37 USC 1009 
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—Any adjustment 
required by section 1009 of title 37, United States Code, in elements 
of compensation of members of the uniformed services to become 
effective during fiscal year 1997 shall not be made. 
(b) INCREASE IN BASIC PAY AND BAS.—^Effective on January 
Effective date. 
1, 1997, the rates of basic pay and basic allowance for subsistence 
of members of the uniformed services are increased by 3.0 percent. 
110 STAT. 2540 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Effective date. 
(c) INCREASE IN BAQ.—Effective on January 1, 1997, the rates 
of basic allowance for quarters of members of the uniformed services 
are increased by 4.6 percent. 
SEC. 602. ADJUSTMENT OF RATE OF CADET AND MIDSHIPMAN PAY. 
Section 203(c) of title 37, United States Code, is amended— 
(1) by striking out paragraph (2); and 
(2) in paragraph (1), by striking out "(1)"-
SEC, 603. PAY OF SENIOR NONCOMMISSIONED OFFICERS WHILE 
HOSPITALIZED. 
(a) PAY DURING HOSPITALIZATION.—Section 210 of title 37, 
United States Code, is amended— 
(1) by redesignating subsection (b) as subsection (c); and 
(2) by inserting after subsection (a) the following new sub-
section (b): 
"(b) A noncommissioned officer of an armed force who is 
hospitalized and who, during or immediately before such hos-
pitalization, completed service as the senior enlisted member of 
that armed force, shall continue to be entitled, for not more than 
180 days while so hospitalized, to the rate of basic pay authorized 
for the senior enlisted member of that armed force.". 
(b) CLERICAL AMENDMENTS.—(1) The heading of such section 
is amended to read as follows: 
*
*
§ 210. Pay of senior enlisted members during terminal leave 
and while hospitalized**. 
(2) The item relating to such section in the table of sections 
at the beginning of chapter 3 of title 37, United States Code, 
is amended to read as follows: 
"210. Pay of senior enlisted members during terminal leave and while hospitalized.". 
SEC. 604. AVAILABILITY OF BASIC ALLOWANCE FOR QUARTERS FOR 
CERTAIN MEMBERS WITHOUT DEPENDENTS WHO SERVE 
ON SEA DUTY. 
(a) ENTITLEMENT OF SINGLE MEMBERS ABOVE GRADE E - 5 . — 
Section 403(c)(2) of title 37, United States Code, is amended— 
(1) by striking out "A member" in the first sentence and 
inserting in lieu thereof "(A) Except as provided in subpara-
graphs (B) and (C), a member"; and 
(2) by striking out the second sentence. 
(b) ENTITLEMENT OF CERTAIN SINGLE MEMBERS IN GRADE 
E-5.—Such section is further amended by adding at the end the 
following new subparagraph: 
Regulations. 
"(B) Under regulations prescribed by the Secretary concerned, 
the Secretary may authorize the payment of a basic allowance 
for quarters to a member of a uniformed service without dependents 
who is serving in pay grade E-5 and is assigned to sea duty. 
In prescribing regulations under this subparagraph, the Secretary 
concerned shall consider the availability of quarters for members 
serving in pay grade E-5.". 
(c) ENTITLEMENT WHEN BOTH SPOUSES IN GRADES BELOW 
GRADE E - 6 ARE ASSIGNED TO SEA DUTY.—Such section is further 
amended by inserting after subparagraph (B), as added by sub-
section (b), the following new subparagraph: 
"(C) Notwithstanding section 421 of this title, two members 
of the uniformed services in a pay grade below pay grade 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2541 
E-6 who are married to each other, have no other dependents, 
and are simultaneously assigned to sea duty are jointly entitled 
to one basic allowance for quarters during the period of such 
simultaneous sea duty. The amount of the allowance shall be based 
on the without dependents rate for the pay grade of the senior 
member of the couple. However, this subparagraph shall not apply 
to a couple if one or both of the members are entitled to a basic 
allowance for quarters under subparagraph (B).". 
(d) CONFORMING AMENDMENT REGARDING VARIABLE HOUSING 
ALLOWANCE.—Section 403a(bX2)(C) of title 37, United States Code, 
is amended by striking out "E-6" and inserting in lieu thereof 
"E-4". 
(e) EFFECTIVE DATE.—^The amendments made by this section 
37 usc 403 note, 
shall take effect on July 1, 1997. 
SEC. 605. UNIFORM APPUCABBLITY OF DISCRETION TO DENY AN 
ELECTION NOT TO OCCUPY GOVERNMENT QUARTERS. 
Section 403(b)(3) of title 37, United States Code, is amended 
by striking out "A member" and inserting in lieu thereof "Subject 
to the provisions of subsection (j), a member". 
SEC. 606. ESTABUSHMENT OF MINIMUM MONTHLY AMOUNT OF VARI-
ABLE HOUSING ALLOWANCE FOR HIGH HOUSING COST 
AREAS. 
(a) MINIMUM MONTHLY AMOUNT OF ALLOWANCE.—Subsection 
(c) of section 403a of title 37, United States Code, is amended 
by striking out paragraph (1) and inserting in lieu thereof the 
following new paragraph: 
"(1) The monthly amount of a variable housing allowance under 
this section for a member of a uniformed service with respect 
to an area is equal to the greater of the following amounts: 
"(A) An amount equal to the difference between— 
"(i) the median monthly cost of housing in that area 
for members of the uniformed services serving in the same 
pay grade and with the same dependency status as that 
member; and 
"(ii) 80 percent of the median monthly cost of housing 
in the United States for members of the uniformed services 
serving in the same pay grade and with the same depend-
ency status as that member. 
"(B) An amount equal to the difference between— 
"(i) the adequate housing allowance floor determined 
by the Secretary of Defense for all members of the uni-
formed services in that area entitled to a variable housing 
allowance under this section; and 
"(ii) the monthly basic allowance for quarters for 
members of the uniformed services serving in the same 
pay grade and with the same dependency status as that 
member.". 
(b) ADEQUATE HOUSING ALLOWANCE FLOOR.—Such subsection 
is further amended by adding at the end the following new para-
graph: 
"(7)(A) For purposes of paragraph (l)(B)(i), the Secretary of 
Defense shall establish an adequate housing allowance floor for 
members of the uniformed services in an area as a selected percent-
age, not to exceed 85 percent, of the cost of adequate housing 
in that area based on an index of housing costs selected by the 
Secretary of Defense from among the following: 
110 STAT. 2542 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(i) The fair market rentals established annually by the 
Secretary of Housing and Urban Development under section 
8(c)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437fTc)(l)). 
"(ii) An index developed in the private sector that the 
Secretary of Defense determines is comparable to the fair mar-
ket rentals referred to in clause (i) and is appropriate for 
use to determine the adequate housing allowance floor. 
"(B) The Secretary of Defense shall carry out this paragraph 
in consultation with the Secretary of Transportation, the Secretary 
of Commerce, and the Secretary of Health and Human Services.". 
(c) EFFECT ON TOTAL AMOUNT AVAILABLE FOR ALLOWANCE.— 
Subsection (d)(3) of such section is amended in the second sentence 
by striking out "the second sentence of subsection (c)(3)" and insert-
ing in lieu thereof "paragraph (1)(B) of subsection (c) and the 
second sentence of paragraph (3) of that subsection". 
(d) CONFORMING AMENDMENTS.—Subsection (c) of such section 
is further amended— 
(1) in paragraph (3), by striking out "this subsection" in 
the first sentence and inserting in lieu thereof "paragraph 
(1)(A) or the minimum amount of a variable housing allowance 
under paragraph (1)(B)"; and 
(2) in paragraph (5), by inserting "or minimum amount 
of a variable housing allowance" after "costs of housing". 
Federal Register, 
(e) EFFECTIVE DATE.—^The amendments made by this section 
publication. 
shall take effect on January 1, 1997, except that the Secretary 
note 
^^^* 
®
^ Defense may delay implementation of the requirements imposed 
by the amendments to such later date as the Secretary considers 
appropriate upon publication of notice to that effect in the Federal 
Register. 
SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS SEPA-
RATED BY MILITARY ORDERS FROM SPOUSES WHO ARE 
MEMBERS. 
(a) ADDITIONAL BASIS FOR ALLOWANCE.—Paragraph (1) of sec-
tion 427(b) of title 37, United States Code, is amended— 
(1) by striking out "or" at the end of subparagraph (B); 
(2) by striking out the period at the end of subparagraph 
(C) and inserting in lieu thereof "; or"; and 
(3) by adding at the end the following new subparagraph: 
"(D) the member is married to a member of a uniformed 
service, the member has no dependent other than the spouse, 
the two members are separated by reason of the execution 
of military orders, and the two members were residing together 
immediately before being sepsirated by reason of execution of 
military orders.". 
(b) 
CONFORMING 
AMENDMENT.—Such 
section 
is 
further 
amended by adding at the end the following new paragraph: 
"(5) Section 421 of this title does not apply to bar an entitlement 
to an allowance under paragraph (1)(D). However, not more than 
one monthly allowance may be paid with respect to a married 
couple under paragraph (1)(D) for any month.". 
SEC. 608. WAIVER OF TIME LIMITATIONS FOR CLAIM FOR PAY AND 
ALLOWANCES. 
Section 3702 of title 31, United States Code, is amended by 
adding at the end the following new subsection: 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2543 
"(e)(1) Upon the request of the Secretary concerned (as defined 
in section 101 of title 37, United States Code), the Comptroller 
General may waive the time limitations set forth in subsection 
(b) or (c) in the case of a claim for pay or allowances provided 
under title 37 and, subject to paragraph (2), settle the claim. 
"(2) Payment of a claim settled under paragraph (1) shall 
be subject to the availability of appropriations for pa3rment of that 
particular claim. 
"(3) This subsection does not apply to a claim in excess of 
$25,000.". 
Subtitle B—^Bonuses and Special and 
Incentive Pays 
SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL 
PAY AUTHORITIES FOR RESERVE FORCES. 
(a) SPECIAL PAY FOR CRITICALLY SHORT WARTIME HEALTH 
SPECIALISTS.—Section 302g(f) of title 37, United States Code, is 
Eimended by striking out "September 30, 1997" and inserting in 
lieu thereof "September 30, 1998". 
(b) SELECTED RESERVE REENLISTMENT BONUS.—Section 308b(f) 
of title 37, United States Code, is amended by striking out "Septem-
ber 30, 1997" and inserting in lieu thereof "September 30, 1998". 
(c) SELECTED RESERVE ENLISTMENT BONUS.—Section 308c(e) 
of title 37, United States Code, is amended by striking out "Septem-
ber 30, 1997" and inserting in lieu thereof "September 30, 1998". 
(d) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED TO CERTAIN 
HIGH PRIORITY UNITS.—Section 308d(c) of title 37, United States 
Code, is amended by striking out "September 30, 1997" and insert-
ing in lieu thereof "September 30, 1998". 
(e) SELECTED RESERVE AFFILIATION BONUS.—Section 308e(e) 
of title 37, United States Code, is amended by striking out "Septem-
ber 30, 1997" and inserting in Ueu thereof "September 30, 1998". 
(f) READY RESERVE ENLISTMENT AND REENLISTMENT BONUS.— 
Section 308h(g) of title 37, United States Code, is amended by 
striking out "September 30, 1997" and inserting in lieu thereof 
"September 30, 1998". 
(g) PRIOR SERVICE ENLISTMENT BONUS.—Section 308i(i) of 
title 37, United States Code, is amended by striking out "September 
30, 1997" and inserting in Ueu thereof "September 30, 1998". 
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL 
PAY AUTHORITIES FOR NURSE OFFICER CANDIDATES, 
REGISTERED NURSES, AND NURSE ANESTHETISTS. 
(a) NURSE OFFICER CANDIDATE ACCESSION PROGRAM.—Section 
2130a(a)(l) of title 10, United States Code, is amended by striking 
out "September 30, 1997" and inserting in lieu thereof "September 
30, 1998". 
(b) ACCESSION BONUS FOR REGISTERED NURSES.—Section 
302d(a)(l) of title 37, United States Code, is amended by striking 
out "September 30, 1997" and inserting in lieu thereof "September 
30, 1998". 
(c) INCENTIVE SPECIAL PAY FOR NURSE ANESTHETISTS.—Section 
302e(a)(l) of title 37, United States Code, is amended by striking 
out "September 30, 1997" and inserting in lieu thereof "September 
30, 1998". 
110 STAT. 2544 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAY-
MENT OF OTHER BONUSES AND SPECIAL PAYS. 
(a) AVIATION OFFICER RETENTION BONUS.—Section 301b(a) of 
title 37, United States Code, is amended by striking out "September 
30, 1997" and inserting in lieu thereof "September 30, 1998,". 
(b) REENLISTMENT 
BONUS FOR ACTIVE 
MEMBERS.—Section 
308(g) of title 37, United States Code, is amended by striking 
out "September 30, 1997" and inserting in lieu thereof "September 
30, 1998". 
(c) ENLISTMENT BONUSES FOR CRITICAL SKILLS.—Sections 
308a(c) and 308f(c) of title 37, United States Code, are each 
amended by striking out "September 30, 1997" and inserting in 
lieu thereof "September 30, 1998". 
(d) SPECIAL PAY FOR NUCLEAR QUALIFIED OFFICERS EXTENDING 
PERIOD OF ACTIVE SERVICE.—Section 312(e) of title 37, United 
States Code, is amended by striking out "September 30, 1997" 
and inserting in lieu thereof "September 30, 1998". 
(e) NUCLEAR CAREER ACCESSION BONUS.—Section 312b(c) of 
title 37, United States Code, is amended by striking out "September 
30, 1997" and inserting in lieu thereof "September 30, 1998". 
(f) NUCLEAR 
CAREER 
ANNUAL 
INCENTIVE BoNus.^^ection 
312c(d) of title 37, United States Code, is amended by striking 
out "October 1, 1997" and inserting in lieu thereof "October 1, 
1998". 
(g) REPAYMENT OF EDUCATION LOANS FOR CERTAIN HEALTH 
PROFESSIONALS WHO SERVE IN THE SELECTED RESERVE.—Section 
16302(d) of title 10, United States Code, is amended by striking 
out "October 1, 1997" and inserting in lieu thereof "October 1, 
1998". 
SEC. 614. SPECIAL PAY FOR CERTAIN PUBLIC HEALTH SERVICE 
OFFICERS. 
(a) OPTOMETRISTS.—Section 302a(b) of title 37, United States 
Code, is amended— 
(1) in paragraph (2)— 
(A) by striking out "an armed force" in the matter 
preceding subparagraph (A) and inserting in lieu thereof 
"a uniformed service"; and 
(B) by striking out "of the military department" in 
subparagraph (C); and 
(2) in paragraph (4), by striking out "of the military depart-
ment". 
(b) NoNPHYSiciAN HEALTH CARE PROVIDERS.—Section 302c(d) 
of title 37, United States Code, is amended— 
(1) in the matter preceding paragraph (1), by striking out 
"Secretary of Defense" and inserting in lieu thereof "Secretary 
concerned"; and 
(2) in paragraph (1)— 
(A) by striking 
out "or" the third 
place it 
appears; and 
(B) by inserting before the period at the end the 
following: ", or an officer in the Regular or Reserve Corps 
of the Public Health Service". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2545 
SEC. 615. SPECIAL INCENTIVES TO RECRUIT AND RETAIN DENTAL 
OFFICERS. 
(a) VARIABLE, ADDITIONAL, AND BOARD CERTIFIED SPECIAL PAYS 
FOR ACTIVE DUTY DENTAL OFFICERS.—Section 302b(a) of title 37, 
United States Code, is amended— 
(1) in paragraph (2)— 
(A) in subparagraph (A), by striking out "$1,200" and 
inserting in lieu thereof "$3,000"; 
(B) in subparagraph (B), by striking out "$2,000" and 
inserting in lieu thereof "$7,000"; and 
(C) in subparagraph (C), by striking out "$4,000" and 
inserting in lieu thereof "$7,000"; 
(2) in paragraph (4), by striking out subparagraphs (A), 
(B), and (C) and inserting in lieu thereof the followiijig: 
"(A) $4,000 per year, if the officer has less than three 
years of creditable service. 
"(B) $6,000 per year, if the officer has at least three but 
less than 14 years of creditable service. 
"(C) $8,000 per year, if the officer has at least 14 but 
less than 18 years of creditable service. 
"(D) $10,000 per year, if the officer has at least 18 or 
more years of creditable service."; and 
(3) in paragraph (5), by striking out subparagraphs (A), 
(B), and (C) and inserting in lieu thereof the following: 
"(A) $2,500 per year, if the officer has less than 10 years 
of creditable service. 
"(B) $3,500 per year, if the officer has at least 10 but 
less than 12 years of creditable service. 
"(C) $4,000 per year, if the officer has at least 12 but 
less than 14 years of creditable service. 
"(D) $5,000 per year, if the officer has at least 14 but 
less than 18 years of creditable service. 
"(E) $6,000 per year, if the officer has 18 or more years 
of creditable service.". 
(b) RESERVE DENTAL OFFICERS SPECIAL PAY.—Section 302b 
of title 37, United States Code, is amended by adding at the end 
the following new subsection: 
"(h) RESERVE DENTAL OFFICERS SPECIAL PAY.—(1) A reserve 
dental officer described in paragraph (2) is entitled to special pay 
at the rate of $350 a month for each month of active duty, including 
active duty in the form of annual training, active duty for training, 
and active duty for special work. 
"(2) A reserve dental officer referred to in paragraph (1) is 
a reserve 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 less than one year.". 
(c) ACCESSION BONUS FOR DENTAL SCHOOL GRADUATES WHO 
ENTER THE ARMED FORCES.—(1) Chapter 5 of title 37, United States 
Code, is amended by inserting after section 302g the following 
new section: 
^§ 302h. Special pay: accession bonus for dental officers 
"(a) ACCESSION BONUS AUTHORIZED.—(1) A person who is a 
graduate of an accredited dental school and who, during the period 
110 STAT. 2546 
PUBLIC LAW 104-201~SEPT. 23, 1996 
beginning on the date of the enactment of this section, and ending 
on September 30, 2002, executes a written agreement described 
in subsection (c) to accept a commission as an officer of the armed 
forces and remain on active duty for a period of not less than 
four years may, upon the acceptance of the agreement by the 
Secretary concerned, be paid an accession bonus in an amount 
determined by the Secretary concerned. 
"(2) The amount of an accession bonus under paragraph (1) 
may not exceed $30,000. 
"(b) LIMITATION ON ELIGIBILITY FOR BONUS.—^A person 
may 
not be paid a bonus under subsection (a) if— 
"(1) the person, in exchange for an agreement to accept 
an appointment as an officer, received financial assistance from 
the Department of Defense to pursue a course of study in 
dentistry; or 
"(2) the Secretary concerned determines that the person 
is not qualified to become and remain certified and licensed 
as a dentist. 
"(c) AGREEMENT.—^The agreement referred to in subsection (a) 
shall provide that, consistent with the needs of the armed service 
concerned, the person executing the agreement will be assigned 
to duty, for the period of obligated service covered by the agreement, 
as an officer of the Dental Corps of the Army or the Navy or 
an officer of the Air Force designated as a dental officer. 
"(d) REPAYMENT.—(1) An officer who receives a pajrment under 
subsection (a) and who fails to become and remain certified or 
licensed as a dentist during the period for which the pajmient 
is made shall refund to the United States an amount equal to 
the full amount of such payment. 
"(2) An officer who voluntarily terminates service on active 
duty before the end of the period agreed to be served under sub-
section (a) shall refund to the United States an amount that bears 
the same ratio to the amount paid to the officer as the unserved 
part of such period bears to the total period agreed to be served. 
"(3) An obligation to reimburse the United States imposed 
under paragraph (1) or (2) is for all purposes a debt owed to 
the United States. 
"(4) A discharge in bankruptcy under title 11 that is entered 
less than five years after the termination of £in agreement under 
this section does not discharge the person signing such agreement 
from a debt arising under such agreement or this subsection. This 
paragraph applies to any case commenced under title 11 after 
the date of the enactment of this section.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 302g 
the following new item: 
"302h. Special pay: accession bonus for dental officers.". 
(3) Section 303a of title 37, United States Code, is amended 
by striking out "302g" each place it appears and inserting in lieu 
thereof "302h". 
(d) REPORT ON ADDITIONAL ACTIVITIES TO INCREASE RECRUIT-
MENT OF DENTISTS.—^Not later than April 1, 1997, the Secretary 
of Defense shall submit to Congress a report describing the feasibil-
ity of increasing the number of persons enrolled in the Armed 
Forces Health Professions Scholarship and Financial Assistance 
program who are pursuing a course of study in dentistry in anticipa-
tion of service as an officer of the Dental Corps of the Army 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2547 
or the Navy or an officer of the Air Force designated as a dental 
officer. 
(e) STYLISTIC AMENDMENTS.—Section 302b of title 37, United 
States Code, is amended— 
(1) in subsection (a), by inserting "VARIABLE, ADDITIONAL, 
AND BOARD CERTIFICATION SPECIAL PAY.—" after "(a)"; 
(2) in subsection (b), by inserting "AcTiVE-DuTY AGREE-
MENT.—" after "(b)"; 
(3) in subsection (c), by inserting "REGULATIONS.—" after 
"(c)"; 
(4) in subsection (d), by inserting "FREQUENCY OF PAY-
MENTS.—" after "(d)"; 
(5) in subsection (e), by inserting "REFUND FOR PERIOD 
OF UNSERVED OBLIGATED SERVICE.—" after "(e)"; 
(6) in subsection (f), by inserting "EFFECT OF DISCHARGE 
IN BANKRUPTCY.—" after "(f)"; and 
(7) in subsection (g), by inserting "DETERMINATION OF 
CREDITABLE SERVICE.—" after "(g)". 
SEC. 616. FOREIGN LANGUAGE PROFICIENCY PAY FOR PUBLIC 
HEALTH 
SERVICE 
AND 
NATIONAL 
OCEANIC AND 
ATMOSPHERIC ADMINISTRATION OFFICERS. 
(a) ELIGIBILITY.—Subsection (a) of section 316 of title 37, United 
States Code, is amended— 
(1) in the matter preceding paragraph (1), by striking out 
"armed forces" and inserting in lieu thereof 
"uniformed 
services"; 
(2) in paragraph (2)— 
(A) by striking out "Secretary of Defense" and inserting 
in lieu thereof "Secretary concerned"; and 
(B) by inserting "or public health" after "national 
defense"; and 
(3) in paragraph (3)— 
(A) in subparagraph (A), by striking out "military" 
Eind inserting in lieu thereof "uniformed services"; 
(B) 
in 
subparagraph 
(C), 
by 
striking 
out 
"military"; and 
(C) in subparagraph (D)— 
(i) by striking out "Department of Defense" and 
inserting in lieu thereof "uniformed service"; and 
(ii) by striking out "Secretary of Defense" and 
inserting in lieu thereof "Secretary concerned". 
(b) 
ADMINISTRATION.—Subsection 
(d) of such 
section 
is 
amended— 
(1) by striking out "his jurisdiction and" and inserting 
in lieu thereof "the jurisdiction of the Secretary,"; and 
(2) by inserting before the period at the end the following: 
", by the Secretary of Health and Human Services for the 
Commissioned Corps of the Public Health Service, and by the 
Secretary 
of Commerce 
for 
the 
National 
Oceanic 
and 
Atmospheric Administration". 
(c) EFFECTIVE DATE.—^The amendments made by this section Applicability, 
shall take effect on October 1, 1996, and apply with respect to 37 USC 316 note, 
months beginning on or after such date. 
110 STAT. 2548 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Subtitle C—Travel and Transportation 
Allowances 
SEC. 621. ALLOWANCE IN CONNECTION WITH SfflPPING MOTOR 
VEfflCLE AT GOVERNMENT EXPENSE. 
(a) ALLOWANCE AUTHORIZED.—Section 406(b)(1)(B) of title 37, 
United States Code, is amended by adding at the end the following: 
"If clause (i)(I) applies to the trsmsportation by the member of 
a motor vehicle from the old duty station, the monetary allowance 
under this subparagraph shall also cover return travel to the old 
duty station by the member or other person transporting the vehicle. 
In the case of transportation described in clause (ii), the monetary 
allowance shall also cover travel from the new duty station to 
the port of debarkation to pick up the vehicle.". 
37 use 406 note. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect on January 1, 1997. 
SEC. 622. DISLOCATION ALLOWANCE AT A RATE EQUAL TO TWO AND 
ONE-HALF MONTHS BASIC ALLOWANCE FOR QUARTERS. 
(a) ALLOWANCE AUTHORIZED.—Section 407(a) of title 37, United 
States Code, is amended in the matter preceding paragraph (1) 
by striking out "two months" and inserting in lieu thereof "two 
and one-half months". 
37 use 407 note. 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall take effect on January 1, 1997. 
SEC. 
6
2
3
. 
ALLOWANCE FOR TRAVEL PERFORMED IN CONNECTION 
WITH 
LEAVE 
BETWEEN CONSECUTIVE 
OVERSEAS 
TOURS. 
(a) AUTHORITY FOR ADDITIONAL DEFERRAL OF TRAVEL.—Section 
411b(a)(2) of title 37, United States Code, is amended by adding 
at the end the following: "If the member is unable to undertake 
the travel before the end of such one-year period as a result of 
duty in connection with a contingency operation, the member may 
defer the travel for one additional year beginning on the date 
the duty of the member in connection with the contingency operation 
ends.". 
37 use 411b 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
note. 
shall take effect as of November 1, 1995. 
SEC. 624. FUNDING FOR TRANSPORTATION OF HOUSEHOLD EFFECTS 
OF PUBLIC HEALTH SERVICE OFFICERS. 
Section 406(j) of title 37, United States Code, is amended— 
(1) in the first sentence of paragraph (1)— 
(A) by striking out "Appropriations available" and all 
that follows through "to a member" and inserting in lieu 
thereof "The Secretary concerned may pay a monetary 
allowance to a member of the armed forces or a member 
of the Commissioned Corps of the Public Health Service"; 
and 
(B) by striking out "of the military department"; and 
(2) by adding at the end the following new paragraph: 
"(3) Appropriations available to the Department of Defense 
for providing transportation of household effects of members of 
the armed forces under subsection (b) shall be available to pay 
the monetary allowance authorized under paragraph (1) to such 
members. Appropriations available to the Department of Health 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2549 
and Human Services for providing transportation of household 
effects of members of the Commissioned Corps of the Public Health 
Service under subsection (b) shall be available to pay the monetary 
allowance authorized under paragraph (1) to such members.". 
Subtitle D—Retired Pay, Survivor Benefits, 
and Related Matters 
SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING 
ADJUSTMENT FOR FISCAL YEAR 1998. 
(a) REPEAL OF ADJUSTMENT OF EFFECTIVE DATE FOR FISCAL 
YEAR 1998.—Section 1401a(b)(2)(B) of title 10, United States Code, 
is amended— 
(1) by striking out "(B) SPECIAL RULES" and all that follows 
through "In the case of in clause (i) and inserting in lieu 
thereof "(B) SPECIAL RULE FOR FISCAL YEAR 1996.—In the case 
of; and 
(2) by striking out clause (ii). 
(b) REPEAL OF CONTINGENT ALTERNATIVE DATE FOR FISCAL 
YEAR 1998.—Section 631 of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 364) i0USCi40la 
is amended by striking out subsection (b). 
"ote. 
SEC. 632. CLARIFICATION OF INITIAL COMPUTATION OF RETIREE 
COLAS AFTER RETIREMENT. 
(a) IN GENERAL.—Section 1401a of title 10, United States Code, 
is amended by striking out subsections (c) and (d) and inserting 
in lieu thereof the following new subsections: 
"(c) FIRST COLA ADJUSTMENT FOR MEMBERS WITH 
RETIRED 
PAY COMPUTED USING FINAL BASIC PAY.— 
"(1) FIRST ADJUSTMENT WITH INTERVENING INCREASE IN 
BASIC PAY.—^Notwithstanding subsection (b), if a person 
described in paragraph (3) becomes entitled to retired pay 
based on rates of monthly basic pay that became effective 
after the last day of the calendar quarter of the base index, 
the retired pay of the member or former member shall be 
increased on the effective date of the next adjustment of retired 
pay under subsection (b) only by the percent (adjusted to the 
nearest one-tenth of 1 percent) by which— 
"(A) the price index for the base quarter of that year, 
exceeds 
"(B) the price index for the calendar quarter imme-
diately before the calendar quarter in which the rates 
of monthly basic pay on which the retired pay is based 
became effective. 
"(2) FIRST ADJUSTMENT WITH NO INTERVENING 
INCREASE 
IN BASIC PAY.—If a person described in paragraph (3) becomes 
entitled to retired pay on or after the effective date of an 
adjustment in retired pay under subsection (b) but before the 
effective date of the next increase in the rates of monthly 
basic pay, the retired pay of the member or former member 
shall be increased, effective on the date the member becomes 
entitled to that pay, by the percent (adjusted to the nearest 
one-tenth of 1 percent) by which— 
"(A) the base index, exceeds 
110 STAT. 2550 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(B) the price index for the calendar quarter imme-
diately before the csilendar quarter in which the rates 
of monthly basic pay on which the retired pay is based 
became effective. 
"(3) MEMBERS COVERED.—Paragraphs (1) and (2) apply 
to a member or former member of an armed force who first 
became a member of a uniformed service before August 1, 
1986, and whose retired pay base is determined under section 
1406 of this title. 
"(d) FIRST COLA ADJUSTMENT FOR MEMBERS WITH RETIRED 
PAY COMPUTED USING HIGH-THREE.—^Notwithstanding subsection 
(b), the retired pay of a member or former member of an armed 
force who first became a member of a uniformed service before 
August 1, 1986, and whose retired pay base is determined under 
section 1407 of this title shall be increased on the effective date 
of the first adjustment of retired pay under subsection (b) after 
the member or former member becomes entitled to retired pay 
by the percent (adjusted to the nearest one-tenth of 1 percent) 
equal to the difference between the percent by which— 
"(1) the price index for the base quarter of that year, 
exceeds 
"(2) the price index for the calendar quarter immediately 
before the calendar quarter during which the member became 
entitled to retired pay.". 
Applicability. 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
10 use 1401a 
shall apply only to adjustments of retired and retainer pay effective 
"°*®" 
after the date of the enactment of this Act. 
5 use 8313 note. 
SEC. 633. SUSPENSION OF PAYMENT OF RETIRED PAY OF MEMBERS 
WHO ARE ABSENT FROM THE UNITED STATES TO AVOID 
PROSECUTION. 
(a) 
DEVELOPMENT OF PROCEDURES FOR SUSPENSION.—^The 
Secretary of Defense shall develop uniform procedures under which 
the Secretary of a military department may suspend the pajmaent 
of the retired pay of a member or former member of the Armed 
Forces during periods in which the member willfully remains out-
side the United States to avoid criminal prosecution or civil liability. 
The procedures shall address the types of criminal offenses and 
civil proceedings for which the procedures may be used, including 
the offenses specified in section 8312 of title 5, United States 
Code, and the manner by which a member, upon the return of 
the member to the United States, may obtain retired pay withheld 
during the member's absence. 
(b) REPORT TO CONGRESS.—The Secretary of Defense shall sub-
mit to Congress a report describing the procedures developed under 
subsection (a). The report shall include recommendations regarding 
changes to existing provisions of law (including section 8313 of 
title 5, United States Code) that the Secretary determines are 
necessary to fully implement the procedures. 
(c) RETIRED PAY DEFINED.—^For purposes of this section, the 
term "retired pay" means retired pay, retirement pay, retainer 
pay, or equivalent pay, payable under a statute to a member or 
former member of a uniformed service. 
(d) EFFECTIVE DATE.—The uniform procedures required by sub-
section (a) shall be developed not later than 30 days after the 
date of the enactment of this Act. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2551 
SEC. 634. NONSUBSTANTIVE RESTATEMENT OF SURVIVOR BENEFIT 
PLAN STATUTE. 
Subchapter II of chapter 73 of title 10, United States Code, 
is amended to read as follows: 
"SUBCHAPTER II—SURVIVOR BENEFIT PLAN 
"Sec. 
"1447. Definitions. 
"1448. Application of Plan. 
"1449. Mental incompetency of member. 
^ 
, 
"1450. Payment of annuity: beneficiaries. 
"1451. Amount of annuity. 
"1452. Reduction in retired pay. 
"1453. Recovery of amounts erroneously paid. 
"1454. Correction of administrative errors. 
"1455. Regulations. 
"§ 1447. Definitions 
"In this subchapter: 
"(1) PLAN,—^The term 'Plan' means the Survivor Benefit 
Plan established by this subchapter. 
"(2) STANDARD ANNUITY.—^The term 'standard annuity' 
means an annuity provided by virtue of eligibility under section 
1448(a)( 1)(A) of this title. 
"(3) RESERVE-COMPONENT ANNUITY.—^The term 'reserve-
component annuity' means an annuity provided by virtue of 
eligibility under section 1448(a)(1)(B) of this title. 
"(4) RETIRED PAY.—^The term 'retired pay' includes retainer 
pay paid under section 6330 of this title. 
"(5) RESERVE-COMPONENT RETIRED PAY.—^The term 'reserve-
component retired pay' means retired pay under chapter 1223 
of this title (or under chapter 67 of this title as in effect 
before the effective date of the Reserve Officer Personnel 
Management Act). 
"(6) BASE AMOUNT.—The term 'base amount' means the 
following: 
"(A) FULL AMOUNT UNDER STANDARD ANNUITY.—In the 
case of a person who dies after becoming entitled to retired 
pay, such term means the amount of monthly retired pay 
(determined without regard to any reduction under section 
1409(b)(2) of this title) to which the person— 
"(i) was entitled when he became eligible for that 
pay; or 
"(ii) later became entitled by being advanced on 
the retired list, performing active duty, or being trans-
ferred from the temporary disability retired list to the 
permanent disability retired list. 
"(B) 
FULL 
AMOUNT 
UNDER 
RESERVE-COMPONENT 
AKfNUITY.—In the case of a person who would have become 
eligible for reserve-component retired pay but for the fact 
that he died before becoming 60 years of age, such term 
means the amount of monthly retired pay for which the 
person would have been eligible— 
"(i) if he had been 60 years of age on the date 
of his death, for purposes of an annuity to become 
effective on the day after his death in accordance with 
a designation made under section 1448(e) of this title; 
or 
110 STAT. 2552 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(ii) upon becoming 60 years of age (if he had 
lived to that age), for purposes of an annuity to become 
effective on the 60th anniversary of his birth in accord-
ance with a designation made under section 1448(e) 
of this title. 
"(C) REDUCED AMOUNT.—Such term means any amount 
less than the amount otherwise applicable under subpara-
graph (A) or (B) with respect to an annuity provided under 
the Plan but which is not less than $300 and which is 
designated by the person (with the concurrence of the per-
son's spouse, if required under section 1448(a)(3) of this 
title) providing the annuity on or before— 
"(i) the first day for which he becomes eligible 
for retired pay, in the case of a person providing a 
standard annuity, or ' 
"(ii) the end of the 90-day period beginning on 
the date on which he receives the notification required 
by section 12731(d) of this title that he has completed 
the years of service required for eligibility for reserve-
component retired pay, in the case of a person provid-
ing a reserve-component annuity. 
"(7) WIDOW.—^The term 'widow' means the surviving wife 
of a person who, if not married to the person at the time 
he became eligible for retired pay— 
"(A) was married to him for at least one year imme-
diately before his death; or 
"(B) is the mother of issue by that marriage. 
"(8) WIDOWER.—The term 'widower* means the surviving 
husband of a person who, if not married to the person at 
the time she became eligible for retired pay— 
"(A) was married to her for at least one year imme-
diately before her death; or 
"(B) is the father of issue by that marriage. 
"(9) SURVIVING SPOUSE.—^The term 'surviving spouse' means 
a widow or widower. 
"(10) FORMER SPOUSE.—^The term 'former spouse' means 
the surviving former husband or wife of a person who is eligible 
to participate in the Plan. 
"(11) DEPENDENT CHILD.— 
"(A) IN GENERAL.—^The term 'dependent child' means 
a person who— 
"(i) is unmarried; 
"(ii) is (I) under 18 years of age, (II) at least 
18, but under 22, years of age and pursuing a full-
time course of study or training in a high school, trade 
school, technical or vocational institute, junior college, 
college, university, or comparable recognized edu-
cational institution, or (III) incapable of self support 
because of a mental or physical incapacity existing 
before the person's eighteenth birthday or incurred 
on or after that birthday, but before the person's 
twenty-second birthday, while pursuing such a full-
time course of study or training; £ind 
"(iii) is the child of a person to whom the Plan 
applies, including (I) an adopted child, and (II) a step-
child, foster child, or recognized natural child who lived 
with that person in a regular parent-child relationship. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2553 
"(B) SPECIAL RULES FOR COLLEGE STUDENTS.—For the 
purpose of subparagraph (A), a child whose twenty-second 
birthday occurs before July 1 or after August 31 of a 
calendar year, and while regularly pursuing such a course 
of study or training, is considered to have become 22 years 
of age on the first day of July after that birthday. A 
child who is a student is considered not to have ceased 
to be a student during an interim between school years 
if the interim is not more than 150 days and if the child 
shows to the satisfaction of the Secretary of Defense that 
the child has a bona fide intention of continuing to pursue 
a course of study or training in the same or a different 
school during the school semester (or other period into 
which the school year is divided) immediately after the 
interim. 
"(C) FOSTER CHILDREN.—A foster child, to qualify under 
this paragraph as the dependent child of a person to whom 
the Plan applies, must, at the time of the death of that 
person, also reside with, and receive over one-half of his 
support from, that person, and not be cared for under 
a social agency contract. The temporary absence of a foster 
child from the residence of that person, while a student 
as described in this paragraph, shall not be considered 
to affect the residence of such a foster child. 
"(12) COURT.—The term 'court' has the meaning given that 
term by section 1408(a)(1) of this title. 
"(13) COURT ORDER.— 
"(A) IN GENERAL.—^The term 'court order' means a 
court's final decree of divorce, dissolution, or annulment 
or a court ordered, ratified, or approved property settlement 
incident to such a decree (including a final decree modifying 
the terms of a previously issued decree of divorce, dissolu-
tion, annulment, or legal separation, or of a court ordered, 
ratified, 
or approved 
property 
settlement 
agreement 
incident to such previously issued decree). 
"(B) FINAL DECREE.^The term 'final decree' means 
a decree from which no appeal may be taken or from 
which no appeal has been taken within the time allowed 
for the taking of such appeals under the laws applicable 
to such appeals, or a decree from which timely appeal 
has been taken and such appeal has been finally decided 
under the laws applicable to such appeals. 
"(C) REGULAR ON ITS FACE.—The term 'regular on its 
face', when used in connection with a court order, means 
a court order that meets the conditions prescribed in section 
1408(b)(2) of this title. 
*
^
§ 1448. Application of plan 
"(a) GENERAL RULES FOR PARTICIPATION IN THE PLAN.— 
"(1) NAME OF PLAN; ELIGIBLE PARTICIPANTS.—The program 
established by this subchapter shall be known as the Survivor 
Benefit Plan. The following persons are eligible to participate 
in the Plan: 
"(A) Persons entitled to retired pay. 
"(B) Persons who would be eligible for reserve-compo-
nent retired pay but for the fact that they are under 
60 years of age. 
110 STAT. 2554 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(2) PARTICIPANTS IN THE PLAN.—The Plan applies to the 
following persons, who shall be participants in the Plan: 
"(A) STANDARD ANNUITY PARTICIPANTS.—^A person who 
is eligible to participate in the Plan under paragraph (1)(A) 
and who is married or has a dependent child when he 
becomes entitled to retired pay, unless he elects (with 
his spouse's concurrence, if required under paragraph (3)) 
not to participate in the Plan before the first day for 
which he is eligible for that pay. 
"(B) 
RESERVE-COMPONENT ANNUITY PARTICIPANTS.—A 
person who (i) is eligible to participate in the Plan under 
paragraph (1)(B), (ii) is married or has a dependent child 
when he is notified under section 12731(d) of this title 
that he has completed the years of service required for 
eligibility for reserve-component retired pay, and (iii) elects 
to participate in the Plan (and makes a designation under 
subsection (e)) before the end of the 90-day period beginning 
on the date he receives such notification. 
A person described in clauses (i) and (ii) of subparagraph (B) 
who does not elect to participate in the Plan before the end 
of the 90-day period referred to in that clause remains eligible, 
upon reaching 60 years of age and otherwise becoming entitled 
to retired pay, to participate in the Plan in accordance with 
eligibility under paragraph (1)(A). 
"(3) ELECTIONS.— 
"(A) 
SPOUSAL 
CONSENT 
FOR 
CERTAIN 
ELECTIONS 
RESPECTING STANDARD ANNUITY.—^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) 
SPOUSAL 
CONSENT 
FOR 
CERTAIN 
ELECTIONS 
RESPECTING 
RESERVE-COMPONENT ANNUITY.—^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) EXCEPTION WHEN SPOUSE UNAVAILABLE.—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 con-
cerned— 
"(i) that the spouse's whereabouts cannot be deter-
mined; or 
"(ii) that, due to exceptional circumstances, requir-
ing the person to seek the spouse's consent would 
otherwise be inappropriate. 
"(D) 
CONSTRUCTION WITH FORMER SPOUSE ELECTION 
PROVISIONS.—^This paragraph does not affect any right or 
obligation to elect to provide an annuity for a former spouse 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2555 
(or for a former spouse and dependent child) under sub-
section (b)(2). 
"(E) NOTICE TO SPOUSE OF ELECTION TO PROVIDE 
FORMER SPOUSE ANNUITY.—If a married person who is 
ehgible 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. 
"(4) IRREVOCABILITY OF ELECTIONS.— 
"(A) STANDARD ANNUITY.—^An election under paragraph 
(2)(A) not to participate in the Plan is irrevocable if not 
revoked before the date on which the person first becomes 
entitled to retired pay. 
"(B) RESERVE-COMPONENT ANNUITY.—^An election under 
paragraph (2)(B) to participate in the Plan is irrevocable 
if not revoked before the end of the 90-day period referred 
to in that paragraph. 
"(5) 
PARTICIPATION BY PERSON 
MARRYING AFTER RE-
TIREMENT, ETC.— 
"(A) ELECTION TO PARTICIPATE IN PLAN.—^A person who 
is not married and has no dependent child upon becoming 
eligible to participate in the Plan but who later marries 
or acquires a dependent child may elect to participate 
in the Plan. 
"(B) MANNER AND TIME OF ELECTION.—Such an election 
must be written, signed by the person making the election, 
and received by the Secretary concerned within one year 
after the date on which that person marries or acquires 
that dependent child. 
"(C) LIMITATION ON REVOCATION OF ELECTION.—Such 
an election may not be revoked except in accordance with 
subsection (b)(3). 
"(D) EFFECTIVE DATE OF ELECTION.—The election is 
effective as of the first day of the first calendar month 
following the month in which the election is received by 
the Secretary concerned. 
"(E) DESIGNATION IF RCSBP ELECTION.—In the case of 
a person providing a reserve-component annuity, such an 
election shall include a designation under subsection (e). 
"(6) ELECTION OUT OF PLAN BY PERSON WITH SPOUSE 
COVERAGE WHO REMARRIES.— 
"(A) GENERAL RULE.—A person— 
"(i) who is a participant in the Plan and is provid-
ing coverage under the Plan for a spouse (or a spouse 
and child); 
"(ii) who does not have an eligible spouse bene-
ficiary under the Plan; and 
"(iii) who remarries, 
may elect not to provide coverage under the Plan for the 
person's spouse. 
"(B) EFFECT OF ELECTION ON RETIRED PAY.—If such 
an election is made, reductions in the retired pay of that 
person under section 1452 of this title shall not be made. 
"(C) TERMS AND CONDITIONS OF ELECTION.—^An election 
under this paragraph— 
"(i) is irrevocable; 
110 STAT. 2556 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(ii) shall be made within one year after the per-
son's remarriage; and 
"(iii) shall be made in such form and manner as 
may be prescribed in regulations under section 1455 
of this title. 
"(D) NOTICE TO SPOUSE.—If a person makes an election 
under 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. 
"(E) CONSTRUCTION WITH FORMER SPOUSE ELECTION 
PROVISIONS.—^This paragraph does not affect any right or 
obligation to elect to provide an annuity to a former spouse 
under subsection (b). 
"(b) INSURABLE INTEREST AND FORMER SPOUSE COVERAGE.— 
"(1) COVERAGE FOR PERSON WITH INSURABLE INTEREST.— 
"(A) GENERAL RULE.—^A person who is not married 
and does not have a dependent child upon becoming eligible 
to participate in the Plan may elect to provide an annuity 
under the Plan to a natural person with an insurable 
interest in that person. In the case of a person providing 
a reserve-component annuity, such an election shall include 
a designation under subsection (e). 
"(B) TERMINATION OF COVERAGE.^AU election under 
subparagraph (A) for a beneficiary who is not the former 
spouse of the person providing the annuity may be termi-
nated. Any such termination shall be made by a participant 
by the submission to the Secretary concerned of a request 
to discontinue participation in the Plan, and such participa-
tion in the Plan shall be discontinued effective on the 
first day of the first month following the month in which 
the request is received by the Secretary concerned. Effective 
on such date, the Secretary concerned shall discontinue 
the reduction being made in such person's retired pay 
on account of participation in the Plan or, in the case 
of a person who has been required to make deposits in 
the Treasury on account of participation in the Plan, such 
person may discontinue making such deposits effective on 
such date. 
"(C) FORM FOR DISCONTINUATION.—A request under 
subparagraph (B) to discontinue participation in the Plan 
shall be in such form and shall contain such information 
as may be required under regulations prescribed by the 
Secretary of Defense. 
"(D) WITHDRAWAL OF REQUEST FOR DISCONTINUATION.— 
The Secretary concerned shall furnish promptly to each 
person who submits a request under subparagraph (B) 
to discontinue participation in the Plan a written statement 
of the advantages and disadvantages of participating in 
the Plan and the possible disadvantages of discontinuing 
participation. A person may withdraw the request to dis-
continue participation if withdrawn within 30 days after 
having been submitted to the Secretary concerned. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2557 
"(E) 
CONSEQUENCES 
OF 
DISCONTINUATION.—Once 
participation is discontinued, benefits may not be paid in 
conjunction with the eariier participation in the Plan and 
premiums paid may not be refunded. Participation in the 
Plan may not later be resumed except through a qualified 
election under paragraph (5) of subsection (a). 
"(2) FORMER SPOUSE COVERAGE UPON BECOMING A PARTICI-
PANT IN THE PLAN.— 
"(A) GENERAL RULE.—A person who has a former 
spouse upon becoming eligible to participate in the Plan 
may elect to provide an annuity to that former spouse. 
"(B) EFFECT OF FORMER SPOUSE ELECTION ON SPOUSE 
OR DEPENDENT CHILD.—In the case of a person with a 
spouse or a dependent child, such an election prevents 
payment of an annuity to that spouse or child (other than 
a child who is a beneficiary under an election under para-
graph (4)), including pa3anent under subsection (d). 
"(C) 
DESIGNATION IF MORE 
THAN 
ONE FORMER 
SPOUSE.—If there is more than one former spouse, the 
person shall designate which former spouse is to be pro-
vided the annuity. 
"(D) DESIGNATION IF RCSBP ELECTION.—In the case of 
a person providing a reserve-component annuity, such an 
election shall include a designation under subsection (e). 
"(3) FORMER SPOUSE 
COVERAGE BY PERSONS ALREADY 
PARTICIPATING IN PLAN.— 
"(A) ELECTION OF COVERAGE.— 
"(i) AUTHORITY FOR ELECTION.—^A person— 
"(I) who is a participant in the Plan and is 
providing coverage for a spouse or a spouse and 
child (even though there is no beneficiary currently 
eligible for such coverage), and 
"(II) who has a former spouse who was not 
that person's former spouse when that person 
became eligible to participate in the Plan, 
may (subject to subparagraph (B)) elect to provide an 
annuity to that former spouse. 
"(ii) TERMINATION OF PREVIOUS COVERAGE.—^Any 
such election terminates any previous coverage under 
the Plan. 
"(iii) MANNER AND TIME OF ELECTION.—^Any such 
election must be written, signed by the person making 
the election, and received by the Secretary concerned 
within one year sifter the date of the decree of divorce, 
dissolution, or annulment. 
"(B) LIMITATION ON ELECTION.—^A person may not 
make an election under subparagraph (A) to provide an 
annuity to a former spouse who that person married after 
becoming eligible for retired pay unless— 
"(i) the person was married to that former spouse 
for at least one year, or 
"(ii) that former spouse is the parent of issue by 
that marriage. 
"(C) IRREVOCABILITY, EFFECTIVE DATE, ETC.—^An elec-
tion under this paragraph may not be revoked except in 
accordance with section 1450(f) of this title. Such an elec-
tion is effective as of the first day of the first calendar 
110 STAT. 2558 
PUBLIC LAW 104-201—SEPT. 23, 1996 
month following the month in which it is received by the 
Secretary concerned. This paragraph does not provide the 
authority to change a designation previously made under 
subsection (e). 
"(D) NOTICE TO SPOUSE.—If a person who is married 
makes an election to provide an annuity to a former spouse 
under this paragraph, that person's spouse shall be notified 
of the election. 
"(4) FORMER SPOUSE AND CHILD COVERAGE.—^A person who 
elects to provide an annuity for a former spouse under para-
graph (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. 
"(5) DISCLOSURE OF WHETHER ELECTION OF FORMER SPOUSE 
COVERAGE IS REQUIRED.—^A person who elects to provide an 
annuity to a former spouse under paragraph (2) or (3) shall, 
at the time of making the election, provide the Secretary con-
cerned with a written statement (in a form to be prescribed 
by that Secretary and signed by such person and the former 
spouse) setting forth— 
"(A) whether the election is being made pursuant to 
the requirements of a court order; or 
"(B) whether the election is being made pursuant to 
a written agreement previously entered into voluntarily 
by such person as a part of, or incident to, a proceeding 
of divorce, dissolution, or annulment and (if so) whether 
such voluntary written agreement has been incorporated 
in, or ratified or approved by, a court order. 
"(c) PERSONS ON TEMPORARY DISABILITY RETIRED LIST.—^The 
application of the Plsm to a person whose name is on the temporary 
disability retired list terminates when his name is removed from 
that list and he is no longer entitled to disability retired pay. 
"(d) 
COVERAGE FOR SURVIVORS OF RETIREMENT-ELIGIBLE 
MEMBERS WHO DIE ON ACTIVE DUTY.— 
"(1) SURVIVING SPOUSE ANNUITY.—^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 commis-
sioned service. 
"(2) DEPENDENT CHILD ANNUITY.—^The Secretary concerned 
shall pay an annuity under this subchapter to the dependent 
child of a member described in paragraph (1) if there is no 
surviving spouse or if the member's surviving spouse subse-
quently dies. 
"(3) MANDATORY FORMER SPOUSE ANNUITY.—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— 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2559 
"(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(f)(3) of this title. 
"(4) PRIORITY.—^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 sub-
chapter on account of service of the same member. 
"(5) COMPUTATION.—The amount of an annuity under this 
subsection is computed under section 1451(c) of this title. 
"(e) DESIGNATION FOR COMMENCEMENT OF RESERVE-COMPO-
NENT ANNUITY.—In any case in which a person electing to partici-
pate in the Plan is required to make a designation under this 
subsection, the person making such election shall designate 
whether, in the event he dies before becoming 60 years of age, 
the annuity provided shall become effective on— 
"(1) the day after the date of his death; or 
"(2) the 60th anniversary of his birth. 
"(f) 
COVERAGE OF SURVIVORS OF PERSONS DYING WHEN 
ELIGIBLE TO ELECT RESERVE-COMPONENT ANNUITY.— 
"(1) SURVIVING SPOUSE ANNUITY.—^The Secretary concerned 
shall pay an annuity under this subchapter to the surviving 
spouse of a person who is eligible to provide a reserve-compo-
nent annuity and who dies— 
"(A) before being notified under section 12731(d) of 
this title that he has completed the years of service required 
for eligibility for reserve-component retired pay; or 
"(B) during the 90-day period beginning on the date 
he receives notification under section 12731(d) of this title 
that he has completed the years of service required for 
eligibility for reserve-component retired pay if he had not 
made an election under subsection (a)(2)(B) to participate 
in the Plan. 
"(2) DEPENDENT CHILD ANNUITY.—^The Secretary concerned 
shall pay an annuity under this subchapter to the dependent 
child of a person described in paragraph (1) if there is no 
surviving spouse or if the person's surviving spouse subse-
quently dies. 
"(3) MANDATORY FORMER SPOUSE ANNUITY.—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 
110 STAT. 2560 
PUBLIC LAW 104-201—SEPT. 23, 1996 
request from the former spouse concerned that the election 
be deemed to have been made in the same manner as 
provided in section 1450(f)(3) of this title. 
"(4) COMPUTATION.—^The amount of an annuity under this 
subsection is computed under section 1451(c) of this title. 
"(g) ELECTION TO INCREASE COVERAGE UPON REMARRIAGE.— 
" ( I ) E L E C T I O N . ^ A person— 
"(A) who is a participant in the Plan and is providing 
coverage 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 increase 
the level of coverage provided under the Plan to a level not 
in excess of the current retired pay of that person. 
"(2) PAYMENT REQUIRED.—Such an election shall be contin-
S
ent on the person pajring to the United States the amount 
etermined under paragraph (3) plus interest on such amount 
at a rate determined under regulations prescribed by the Sec-
retary of Defense. 
"(3) AMOUNT TO BE PAID.—^The amount referred to in para-
graph (2) is the amount equal to the difference between— 
"(A) the amount that would have been withheld from 
such 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) MANNER OF MAKING ELECTION.—^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) DISPOSITION OF PAYMENTS.—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 subsection shall be 
deposited in the Treasury as miscellaneous receipts. 
"§ 1449. Mental incompetency of member 
"(a) 
ELECTION BY SECRETARY CONCERNED ON BEHALF OF 
MENTALLY INCOMPETENT MEMBER.—If a person to whom section 
1448 of this title applies is determined to be mentally incompetent 
by medical officers of the armed force concerned or of the Depart-
ment of Veterans Affairs, or by a court of competent jurisdiction, 
an election described in subsection (a)(2) or (b) of section 1448 
of this title may be made on behalf of that person by the Secretary 
concerned. 
"(b) REVOCATION OF ELECTION BY MEMBER.— 
"(1) 
AUTHORITY UPON SUBSEQUENT DETERMINATION OF 
MENTAL COMPETENCE.—If a person for whom the Secretary 
has made an election under subsection (a) is later determined 
to be mentally competent by an authority named in that sub-
section, that person may, within 180 days after that determina-
tion, revoke that election. 
"(2) 
DEDUCTIONS 
FROM 
RETIRED 
PAY 
NOT 
TO 
BE 
REFUNDED.—^Any deduction made from retired pay by reason 
of such an election may not be refunded. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2561 
*
*
§ 1450. Payment of annuity: beneficiaries 
"(a) IN GENERAL.—Effective as of the first day after the death 
Effective date. 
of a person to whom section 1448 of this title appHes (or on such 
other day as that person may provide under subsection (j)), a 
monthly annuity under section 1451 of this title shall be paid 
to the person's beneficiaries under the Plan, as follows: 
"(1) SURVIVING SPOUSE OR FORMER SPOUSE.—The eligible 
surviving spouse or the eligible former spouse. 
"(2) SURVIVING CHILDREN.—The surviving dependent chil-
dren in equal shares, if the eligible surviving spouse or the 
eligible former spouse is dead, dies, or otherwise becomes ineli-
gible under this section. 
"(3) DEPENDENT CHILDREN.—^The dependent children in 
equal shares if the person to whom section 1448 of this title 
applies (with the concurrence of the person's spouse, if required 
under section 1448(a)(3) of this title) elected to provide an 
annuity for dependent children but not for the spouse or former 
spouse. 
"(4) NATURAL PERSON DESIGNATED UNDER 
'INSURABLE 
INTEREST' COVERAGE.—^The natural person designated under 
section 1448(b)(1) of this title, unless the election to provide 
an annuity to the natural person has been changed as provided 
in subsection (f). 
"(b) TERMINATION OF ANNUITY FOR DEATH, REMARRIAGE BEFORE 
AGE 55, ETC.— 
"(1) GENERAL RULE.—^An annuity payable to the beneficiary 
terminates effective as of the first day of the month in which 
eligibility is lost. 
"(2) TERMINATION OF SPOUSE ANNUITY UPON DEATH OR 
REMARRIAGE BEFORE AGE 55.—^An annuity for a surviving spouse 
or former spouse shall be paid to the surviving spouse or 
former spouse while the surviving spouse or former spouse 
is living or, if the surviving spouse or former spouse remarries 
before reaching age 55, until the surviving spouse or former 
spouse remarries. 
"(3) EFFECT OF TERMINATION OF SUBSEQUENT MARRIAGE 
BEFORE AGE 55.—If the surviving spouse or former spouse 
remarries before reaching age 55 and that marriage is termi-
nated by death, annulment, or divorce, payment of the annuity 
shall be resumed effective as of the first day of the month 
in which the marriage is so terminated. However, if the surviv-
ing spouse or former spouse is also entitled to an annuity 
under the Plan based upon the marriage so terminated, the 
surviving spouse or former spouse may not receive both annu-
ities but must elect which to receive. 
"(c) OFFSET FOR AMOUNT OF DEPENDENCY AND INDEMNITY 
COMPENSATION.— 
"(1) REQUIRED OFFSET.—If, upon the death of a person 
to whom section 1448 of this title applies, the surviving spouse 
or former spouse of that person is also entitled to dependency 
and indemnity compensation under section 1311(a) of title 38, 
the surviving spouse or former spouse may be paid an annuity 
under this section, but only in the amount that the annuity 
otherwise payable under this section would exceed that com-
pensation. 
"(2) EFFECTIVE DATE OF OFFSET.—^A reduction in an annuity 
under this section required by paragraph (1) shall be effective 
110 STAT. 2562 
PUBLIC LAW 104-201—SEPT. 23, 1996 
on the date of the commencement of the period of pa)mient 
of such dependency and indemnity compensation under title 
38. 
"(d) LIMITATION ON PAYMENT OF ANNUITIES WHEN COVERAGE 
UNDER CIVIL SERVICE RETIREMENT ELECTED.—If, upon the death 
of a person to whom section 1448 of this title applies, that person 
had in effect a waiver of that person's retired pay for the purposes 
of subchapter III of chapter 83 of title 5, an annuity under this 
section shall not be payable unless, in accordance with section 
8339(j) of title 5, that person notified the Office of Personnel Man-
agement that he did not desire any spouse surviving him to receive 
an annuity under section 8341(b) of that title. 
"(e) REFUND OF AMOUNTS DEDUCTED FROM RETIRED PAY WHEN 
Die OFFSET IS APPLICABLE.— 
"(1) FULL REFUND WHEN DIC GREATER THAN SBP ANNUITY.— 
If an annuity under this section is not payable because of 
subsection (c), £iny amount deducted from the retired pay of 
the deceased under section 1452 of this title shall be refunded 
to the surviving spouse or former spouse. 
"(2) PARTIAL REFUND WHEN SBP ANNUITY REDUCED BY DIC.— 
If, because of subsection (c), the annuity payable is less than 
the amount established under section 1451 of this title, the 
annuity payable shall be recalculated under that section. The 
amount of the reduction in the retired pay required to provide 
that recalculated annuity shall be computed under section 1452 
of this title, and the difference between the amount deducted 
before the computation of that recalculated annuity and the 
amount that would have been deducted on the basis of that 
recalculated annuity shall be refunded to the surviving spouse 
or former spouse. 
"(f) CHANGE IN ELECTION OF INSURABLE INTEREST OR FORMER 
SPOUSE BENEFICIARY.— 
"(1) AUTHORIZED CHANGES.— 
"(A) ELECTION IN FAVOR OF SPOUSE OR CHILD.—A per-
son who elects to provide an annuity to a person designated 
by him under section 1448(b) of this title may, subject 
to paragraph (2), change that election and provide an annu-
ity to his spouse or dependent child. 
"(B) NOTICE.—^The Secretary concerned shall notify the 
former spouse or other natural person previously des-
ignated under section 1448(b) of this title of any change 
of election under subparagraph (A). 
"(C) RIOCEDURES, EFFECTIVE DATE, ETC.—^Any such 
change of election is subject to the same rules with respect 
to execution, revocation, and effectiveness as are set forth 
in section 1448(a)(5) of this title (without regard to the 
eligibility of the person making the change of election to 
make such an election under that section). 
"(2) LIMITATION ON CHANGE IN BENEFICIARY WHEN FORMER 
SPOUSE COVERAGE IN EFFECT.—^A person who, incident to a 
proceeding of divorce, dissolution, or annulment, is required 
by a court order to elect under section 1448(b) of this title 
to provide an annuity to a former spouse (or to both a former 
spouse and child), or who enters into a written agreement 
(whether voluntary or required by a court order) to make such 
an election, and who makes an election pursuant to such order 
or agreement, may not change that election under paragraph 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2563 
(1) unless, of the following requirements, whichever are 
applicable in a particular case are satisfied: 
"(A) In a case in which the election is required by 
a court order, or in which an agreement to make the 
election has been incorporated in or ratified or approved 
by a court order, the person— 
"(i) furnishes to the Secretary concerned a certified 
copy of a court order which is regular on its face 
and which modifies the provisions of all previous court 
orders relating to such election, or the agreement to 
make such election, so as to permit the person to 
change the election; and 
"(ii) certifies to the Secretary concerned that the 
court order is valid and in effect. 
"(B) In a case of a written agreement that has not 
been incorporated in or ratified or approved by a court 
order, the person— 
"(i) furnishes to the Secretary concerned a state-
ment, in such form as the Secretary concerned may 
prescribe, signed by the former spouse and evidencing 
the former spouse's agreement to a change in the elec-
tion under paragraph (1); and 
"(ii) certifies to the Secretary concerned that the 
statement is current Eind in effect. 
"(3) 
REQUIRED FORMER SPOUSE ELECTION TO BE DEEMED 
TO HAVE BEEN MADE.— 
"(A) 
DEEMED ELECTION UPON REQUEST BY FORMER 
SPOUSE.—^If a person described in paragraph (2) or (3) 
of section 1448(b) of this title is required (as described 
in subparagraph (B)) to elect under section 1448(b) of this 
title to provide an annuity to a former spouse and such 
person then fails or refuses to make such an election, 
such person shall be deemed to have made such an election 
if the Secretary concerned receives the following: 
"(i) 
REQUEST FROM FORMER SPOUSE.—^A written 
request, in such manner as the Secretary shall pre-
scribe, from the former spouse concerned requesting 
that such an election be deemed to have been made. 
"(ii) 
COPY OF COURT ORDER OR OTHER OFFICIAL 
STATEMENT.—Either^ 
"(I) a copy of the court order, regular on its 
face, which requires such election or incorporates, 
ratifies, or approves the written agreement of such 
person; or 
"(II) a statement from the clerk of the court 
(or other appropriate official) that such agreement 
has been filed with the court in accordsince with 
applicable State law. 
"(B) PERSONS REQUIRED TO MAKE ELECTION.—A person 
shall be considered for purposes of subparagraph (A) to 
be required to elect under section 1448(b) of this title 
to provide an annuity to a former spouse if— 
"(i) the person enters, incident to a proceeding 
of divorce, dissolution, or annulment, into a written 
agreement to make such an election and the agreement 
(I) has been incorporated in or ratified or approved 
by a court order, or (II) has been filed with the court 
29-194 O - 96 - 27 : QL 3 Part i 
110 STAT. 2564 
PUBLIC LAW 104-201—SEPT. 23, 1996 
of appropriate jurisdiction in accordance with appli-
cable State law; or 
"(ii) the person is required by a court order to 
make such an election. 
"(C) TIME LIMIT FOR REQUEST BY FORMER SPOUSE.— 
An election may not be deemed to have been made under 
subparagraph (A) in the case of any person unless the 
Secretary concerned receives a request from the former 
spouse of the person within one year of the date of the 
court order or filing involved. 
"(D) EFFECTIVE DATE OF DEEMED ELECTION.—^An elec-
tion deemed to have been made under subparagraph (A) 
shall become effective on the first day of the first month 
which begins after the date of the court order or filing 
involved. 
"(4) FORMER SPOUSE COVERAGE MAY BE REQUIRED BY COURT 
ORDER.—^A court order may require a person to elect (or to 
enter into an agreement to elect) under section 1448(b) of 
this title to provide an annuity to a former spouse (or to 
both a former spouse and child). 
"(g) LIMITATION ON CHANGING OR REVOKING ELECTIONS.— 
"(1) IN GENERAL.—^An election under this section may not 
be changed or revoked. 
"(2) EXCEPTIONS.—^Paragraph (1) does not apply to— 
"(A) a revocation of an election under section 1449(b) 
of this title; or 
"(B) a change in an election under subsection (f). 
"(h) TREATMENT OF ANNUITIES UNDER OTHER LAWS.—Except 
as provided in section 1451 of this title, an annuity under this 
section is in addition to any other payment to which a person 
is entitled under any other provision of law. Such annuity shall 
be considered as income under laws administered by the Secretary 
of Veterans Affairs. 
"(i) ANNUITIES EXEMPT FROM CERTAIN LEGAL PROCESS.—Except 
as provided in subsection (1)(3)(B), an annuity under this section 
is not assignable or subject to execution, levy, attachment, garnish-
ment, or other legal process. 
"(j) EFFECTIVE DATE OF RESERVE-COMPONENT ANNUITIES.— 
"(1) PERSONS MAKING SECTION 1448(e) DESIGNATION.—^An 
annuity elected by a person providing a reserve-component 
annuity shall be effective in accordance with the designation 
made by such person under section 1448(e) of this title. 
"(2) 
PERSONS 
DYING 
BEFORE 
MAKING 
SECTION 
1448(e) 
DESIGNATION.—^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. 
"(k) ADJUSTMENT OF SPOUSE OR FORMER SPOUSE ANNUITY UPON 
Loss OF DEPENDENCY AND INDEMNITY COMPENSATION.— 
"(1) READJUSTMENT IF BENEFICIARY 55 YEARS OF AGE OR 
MORE.—If a surviving spouse or former spouse whose annuity 
has been adjusted under subsection (c) subsequently loses 
entitlement to dependency and indemnity compensation under 
section 1311(a) of title 38 because of the remarriage of the 
surviving spouse, or former spouse, and if at the time of such 
remarriage the surviving spouse or former spouse is 55 years 
of age or more, the eimount of the annuity of the surviving 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2565 
spouse or former spouse shall be readjusted, effective on the 
effective date of such loss of dependency and indemnity com-
pensation, to the amount of the annuity which would be in 
effect with respect to the surviving spouse or former spouse 
if the adjustment under subsection (c) had never been made. 
"(2) REPAYMENT OF AMOUNTS PREVIOUSLY REFLTNDED.— 
"(A) GENERAL RULE.—^A surviving spouse or former 
spouse whose annuity is readjusted under paragraph (1) 
shall repay any amount refunded under subsection (e) by 
reason of the adjustment under subsection (c). 
"(B) INTEREST REQUIRED IF REPAYMENT NOT A LUMP 
SUM.—If the repayment is not made in a lump sum, the 
surviving spouse or former spouse shall pay interest on 
the amount to be repaid. Such interest shall commence 
on the date on which the first such payment is due and 
'^ 
shall be applied over the period during which any part 
of the repajrment remains to be paid. 
"(C) MANNER OF REPAYMENT; RATE OF INTEREST.—^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. 
"(D) DEPOSIT OF AMOUNTS REPAID.—An amount repaid 
under this paragraph (including Einy such interest) received 
by the Secret£iry of Defense shall be deposited into the 
Department of Defense Military Retirement Fund. Any 
other amount repaid under this paragraph shall be depos-
ited into the Treasury as miscellaneous receipts. 
"(1) PARTICIPANTS IN THE PLAN WHO ARE MISSING.— 
"(1) 
AUTHORITY 
TO 
PRESUME 
DEATH 
OF 
MISSING 
PARTICIPANT.— 
"(A) IN GENERAL.—^Upon application of the beneficiary 
of a participant in the Plan who is missing, the Secretary 
concerned may determine for purposes of this subchapter 
that the participant is presumed dead. 
"(B) PARTICIPANT WHO IS MISSING.—^A participant in 
the Plan is considered to be missing for purposes of this 
subsection if— 
"(i) the retired pay of the participant has been 
suspended on the basis that the participant is missing; 
or 
"(ii) in the case of a participant in the Plan who 
would be eligible for reserve-component retired pay 
but for the fact that he is under 60 years of age, 
his retired pay, if he were entitled to retired pay, 
would be suspended on the basis that he is missing. 
"(C) REQUIREMENTS APPLICABLE TO PRESUMPTION OF 
DEATH.—^Any such determination shall be made in accord-
ance with regulations prescribed under section 1455 of 
this title. The Secretary concerned may not make a deter-
mination for purposes of this subchapter that a participant 
who is missing is presumed dead unless the Secretary 
finds that— 
"(i) the participant has been missing for at least 
30 days; and 
"(ii) the circumstances under which the participant 
is missing would lead a reasonably prudent person 
to conclude that the participant is dead. 
110 STAT. 2566 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(2) COMMENCEMENT OF ANNUITY.—Upon a determination 
under paragraph (1) with respect to a participant in the Plan, 
an annuity otherwise payable under this subchapter shall be 
paid as if the participant died on the date as of which the 
retired pay of the participant was suspended. 
"(3) EFFECT OF PERSON NOT BEING DEAD.— 
"(A) TERMINATION OF ANNUITY.—If, after a determina-
tion under paragraph (1), the Secretary concerned deter-
mines that the participant is alive— 
"(i) any annuity being paid under this subchapter 
by reason of this subsection shall be terminated; and 
"(ii) the totsd amount of any annuity payments 
made by reason of this subsection shall constitute a 
debt to the United States. 
"(B) 
COLLECTION 
FROM 
PARTICIPANT 
OF ANNUITY 
AMOUNTS ERRONEOUSLY PAID.—^A debt under subparagraph 
(A)(ii) may be collected or offset— 
"(i) from any retired pay otherwise payable to the 
participant; 
"(ii) if the participant is entitled to compensation 
under chapter 11 of title 38, from that compen-
sation; or 
"(iii) if the participant is entitled to any other 
payment from the United States, from that payment. 
(C) COLLECTION FROM BENEFICIARY.—If the partici-
pant dies before the full recovery of the amount of annuity 
payments described in subparagraph (A)(ii) has been made 
by the United States, the remaining amount of such annu-
ity payments may be collected from the participant's bene-
ficiary under the Plan if that beneficiary was the recipient 
of the annuity pa3mients made by reason of this subsection. 
*
*
§ 1451. Amount of annuity 
"(a) COMPUTATION OF ANNUITY FOR A SPOUSE, FORMER SPOUSE, 
O
R CHILD.— 
"(1) STANDARD ANNUITY.—In the case of a standard annuity 
provided to a beneficiary under section 1450(a) of this title 
(other than under section 1450(a)(4)), the monthly annuity pay-
able to the beneficiary shall be determined as follows: 
"(A) BENEFICIARY UNDER 62 YEARS OF AGE.—If the bene-
ficiary is under 62 years of age or is a dependent child 
when becoming entitled to the annuity, the monthly annu-
ity shall be the amount equal to 55 percent of the base 
amount. 
"(B) BENEFICIARY 62 YEARS OF AGE OR OLDER.— 
"(i) GENERAL RULE.—If the beneficiary (other than 
a dependent child) 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. 
"(ii) RULE IF BENEFICIARY ELIGIBLE FOR SOCIAL 
SECURITY OFFSET COMPUTATION.—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 than 
computation under clause (i), the annuity shall be 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2567 
computed under that subsection rather than under 
clause (i), 
"(2) 
RESERVE-COMPONENT ANNUITY—In the case of a 
reserve-component annuity provided to a beneficiary under sec-
tion 1450(a) of this title (other than under section 1450(a)(4)), 
the monthly annuity payable to the beneficiary shall be deter-
mined as follows: 
"(A) BENEFICIARY UNDER 62 YEARS OF AGE.—If the bene-
ficiary is under 62 years of age or is a dependent child 
when becoming entitled to the annuity, the monthly annu-
ity shall be the amount equal to a percentage of the base 
amount that— 
"(i) is less than 55 percent; and 
"(ii) is determined under subsection (f). 
"(B) BENEFICIARY 62 YEARS OF AGE OR OLDER.— 
"(i) GENERAL RULE.—If the beneficiary (other than 
a dependent child) is 62 years of age or older when 
becoming entitled to the Einnuity, the monthly annuity 
shall be the amount equal to a percentage of the base 
amount that— 
"(I) is less than 35 percent; and 
"(II) is determined under subsection (f). 
"(ii) 
RULE IF BENEFICIARY ELIGIBLE FOR SOCIAL 
SECURITY OFFSET COMPUTATION.—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 than 
computation under clause (i), the annuity shall be 
computed under that subsection rather than under 
clause (i). 
"(b) INSURABLE INTEREST BENEFICIARY.— 
"(1) STANDARD ANNUITY.—In the case of a standard annuity 
provided to a beneficiary under section 1450(a)(4) 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. 
"(2) RESERVE-COMPONENT ANNUITY.—In the case of a 
reserve-component annuity provided to a beneficiary under sec-
tion 1450(a)(4) of this title, the monthly annuity 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) COMPUTATION OF RESERVE-COMPONENT ANNUITY WHEN 
PARTICIPANT DIES BEFORE AGE 60.—^For the purposes of para-
graph (2), a person— 
"(A) who provides an annuity that is determined in 
accordance 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 
110 STAT. 2568 
PUBLIC LAW 104-201—SEPT. 23, 1996 
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. 
"(c) ANNUITIES FOR SURVIVORS OF CERTAIN PERSONS DYING 
DURING A PERIOD OF SPECIAL ELIGIBILITY FOR S B P . — 
"(1) IN GENERAL.—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 as follows: 
"(A) BENEFICIARY UNDER 62 YEARS OF AGE.—If the per-
son receiving the annuity is under 62 years of age or 
is a dependent child 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) BENEFICIARY 62 YEARS OF AGE OR OLDER.— 
"(i) GENERAL RULE.—^If the person receiving the 
annuity (other than a dependent child) 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. 
"(ii) 
RULE IF BENEFICIARY ELIGIBLE FOR SOCIAL 
SECURITY OFFSET COMPUTATION.—If the beneficiary is 
eligible to have the annuity computed under subsection 
(e) and if, at the time the beneficiary becomes entitled 
to the smnuity, computation of the annuity under that 
subsection is more favorable to the beneficiary than 
computation under clause (i), the annuity shall be com-
puted under that subsection rather than under clause 
(i). 
"(2) Die OFFSET.—An annuity computed imder 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 under section 1311(a) 
of title 38. Any such reduction shall be effective on the date 
of the commencement of the period of payment of such com-
pensation under title 38. 
"(3) 
SERVICEMEMBERS NOT YET GRANTED RETIRED PAY.— 
In the case of an annuity provided by reason of the service 
of a member described in section 1448(dXl)(B) or 1448(d)(1)(C) 
of this title who first became a member of a uniformed service 
before September 8, 1980, the retired pay to which the member 
would have been entitled when he died shall be determined 
for purposes of paragraph (1) based upon the rate of basic 
pay in effect at the time of death for the grade in which 
the member was serving at the time of death, unless (as deter-
mined by the Secretary concerned) the member would have 
been entitled to be retired in a higher grade. 
"(4) RATE OF PAY TO BE USED IN COMPUTING ANNUITY.— 
In the case of an annuity paid under section 1448(f) of this 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2569 
title by reason of the service of a person who first became 
a member of a uniformed service before September 8, 1980, 
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. 
"(d) REDUCTION OF ANNUITIES AT AGE 62.— 
"(1) REDUCTION REQUIRED.—^The annuity of a person whose 
annuity is computed under subparagraph (A) of subsection 
(a)(1), (a)(2), or (c)(1) shall be reduced on the first day of 
the month after the month in which the person becomes 62 
years of age. 
"(2) AMOUNT OF ANNUITY AS REDUCED.— 
"(A) 35 PERCENT ANNUITY.—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 subparagraph (B) of that subsection. 
"(B) SAVINGS PROVISION FOR BENEFICIARIES ELIGIBLE 
FOR SOCIAL SECURITY OFFSET COMPUTATION.—In the case 
of a person eligible to have an annuity computed under 
subsection (e) and for whom, at the time the person be-
comes 62 years of age, the annuity computed with a reduc-
tion under subsection (e)(3) is more favorable than the 
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 (e)(3). 
"(e) SAVINGS PROVISION FOR CERTAIN BENEFICIARIES.— 
"(1) PERSONS COVERED.—^The following beneficiaries under 
the Plan are eligible to have an annuity under the Plan com-
puted under this subsection: 
"(A) A beneficiary receiving an annuity under the Plan 
on October 1, 1985, as the surviving spouse or former 
spouse of the person providing the annuity. 
"(B) A spouse or former spouse beneficiary of a person 
who on October 1, 1985— 
"(i) was a participant in the Plan; 
"(ii) was entitled to retired pay or was qualified 
for that pay except that he had not applied for and 
been granted that pay; or 
"(iii) would have been eligible for reserve-compo-
nent retired pay but for the fact that he was under 
60 years of age. 
"(2) AMOUNT OF ANNUITY.—Subject to paragraph (3), an 
annuity computed under this subsection is determined as 
follows: 
"(A) STANDARD ANNUITY.—In the case of the beneficiary 
of a standard annuity, the annuity shall be the amount 
equal to 55 percent of the base amount. 
"(B) RESERVE-COMPONENT ANNUITY.—In the case of the 
beneficiary of a reserve-component annuity, the annuity 
shall be the percentage of the base amount that— 
"(i) is less than 55 percent; and 
"(ii) is determined under subsection (f). 
"(C) BENEFICIARIES OF PERSONS DYING DURING A PERIOD 
OF SPECIAL ELIGIBILITY FOR SBP.—In the case of the bene-
ficiary of an annuity under section 1448(d) or 1448(f) of 
110 STAT. 2570 
PUBLIC LAW 104-201—SEPT. 23, 1996 
this title, the annuity shall be the amount equal to 55 
percent of the retired pay of the person providing the 
annuity (as that pay is determined under subsection (c)). 
"(3) SOCIAL SECURITY OFFSET.—An annuity computed under 
this subsection shall be reduced by the lesser of the following: 
"(A) SOCIAL SECURITY COMPUTATION.—The amount of 
the survivor benefit, if any, to which the surviving spouse 
(or the former spouse, in the case of a former spouse 
beneficiary who became a former spouse under a divorce 
that became final after November 29, 1989) 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 con-
cerned as described in section 210(1)(1) of such Act (42 
U.S.C. 410(1)(1)) and calculated assuming that the person 
concerned lives to age 65. 
"(B) MAXIMUM AMOUNT OF REDUCTION.—40 percent of 
the amount of the monthly annuity as determined under 
paragraph (2). 
"(4) 
SPECL\L 
RULES 
FOR 
SOCIAL 
SECURITY 
OFFSET 
COMPUTATION.— 
"(A) 
TREATMENT OF DEDUCTIONS MADE ON ACCOUNT 
OF WORK.—^For the purpose of paragraph (3), a surviving 
spouse (or a former spouse, in the case of a person who 
becomes a former spouse under a divorce that becomes 
final after November 29, 1989) 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) 
TREATMENT OF CERTAIN PERIODS FOR WHICH 
SOCIAL SECURITY REFUNDS ARE MADE.—^In the computation 
of any reduction made under paragraph (3), there shall 
be excluded any period of service described in section 
210(1)(1) of the Social Security Act (42 U.S.C. 410(1)(1))— 
"(i) which was performed after December 1, 1980; 
and 
"(ii) which involved periods of service of less than 
30 continuous days for which the person concerned 
is entitled to receive a refund under section 6413(c) 
of the Internal Revenue Code of 1986 of the social 
security tax which the person had paid. 
"(f) DETERMINATION OF PERCENTAGES APPLICABLE TO COMPUTA-
Reguiations. 
TiON OF RESERVE-COMPONENT ANNUITIES.—^The percentage to be 
applied in determining the amount of an annuity computed under 
subsection (a)(2), (b)(2), or (e)(2)(B) shall be determined under regu-
lations prescribed by the Secretary of Defense. Such regulations 
shall be prescribed taking into consideration the following: 
"(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 
beneficiary 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) on the day after his death or on the 60th anniver-
sary of his birth. 
"(4) Appropriate group annuity tables. 
"(5) Such other factors as the Secretary considers relevant. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2571 
"(g) ADJUSTMENTS TO ANNUITIES.— 
"(1) PERIODIC ADJUSTMENTS FOR COST-OF-LIVING.— 
"(A) 
INCREASES IN ANNUITIES WHEN RETIRED PAY 
INCREASED.—^Whenever retired pay is increased under sec-
tion 1401a of this title (or any other provision of law), 
each gmnuity that is payable under the Plan shall be in-
creased at the same time. 
"(B) PERCENTAGE OF iNCREASE.^The increase shall, 
in the case of any annuity, be by the same percent 
as the percent by which the retired pay of the person 
providing the annuity would have been increased at such 
time if the person were alive (and otherwise entitled to 
such pay). 
"(C) CERTAIN REDUCTIONS TO BE DISREGARDED.—^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 (c)(2). 
"(2) ROUNDING DOWN.—^The monthly amount of an annuity 
payable under this subchapter, if not a multiple of $1, shall 
be rounded to the next lower multiple of $1. 
"(h) ADJUSTMENTS TO BASE AMOUNT.— 
"(1) PERIODIC ADJUSTMENTS FOR COST-OF-LIVING.— 
"(A) INCREASES IN BASE AMOUNT WHEN RETIRED PAY 
INCREASED.—^Whenever retired pay is increased under sec-
tion 1401a of this title (or any other provision of law), 
the base amount applicable to each participant in the Plan 
shall be increased at the same time. 
"(B) PERCENTAGE OF INCREASE.—^The increase shall be 
by the same percent as the percent by which the retired 
pay of the participant is so increased. 
"(2) RECOMPUTATION AT AGE 62.—^When the retired pay 
of a person who first became a member of a uniformed service 
on or after August 1, 1986, and who is a participant in the 
Plan is recomputed under section 1410 of this title upon the 
person's becoming 62 years of age, the base amount applicable 
to that person shall be recomputed (effective on the effective 
date of the recomputation of such retired pay under section 
1410 of this title) so as to be the amount equal to the Eimount 
of the base amount that would be in effect on that date if 
increases in such base amount under paragraph (1) had been 
computed as provided in paragraph (2) of section 1401a(b) 
of this title (rather than under paragraph (3) of that section). 
"(3) 
DISREGARDING OF RETIRED PAY REDUCTIONS FOR 
RETIREMENT BEFORE 30 YEARS OF SERVICE.—Computation of 
a member's retired pay for purposes of this section shall be 
made without regard to any reduction under section 1409(b)(2) 
of this title. 
"(i) 
RECOMPUTATION 
OF 
ANNUITY 
FOR 
CERTAIN 
BENE-
FICIARIES.—^In the case of an annuity under the Plan which is 
computed on the basis of the retired pay of a person who would 
have been entitled to have that retired pay recomputed under 
section 1410 of this title upon attaining 62 years of age, but who 
dies before attaining that age, the annuity shall be recomputed, 
effective on the first day of the first month beginning sifter the 
date on which the member or former member would have attained 
62 years of age, so as to be the amount equal to the amount 
of the Einnuity that would be in effect on that date if increases 
110 STAT. 2572 
PUBLIC LAW 104-201—SEPT. 23, 1996 
under subsection (h)(1) in the base amount applicable to that 
annuity to the time of the death of the member or former member, 
and increases in such annuity under subsection (g)(1), had been 
computed as provided in paragraph (2) of section 1401a(b) of this 
title (rather than under psiragraph (3) of that section). 
"§ 1452. Reduction in retired pay 
"(a) SPOUSE AND FORMER SPOUSE ANNUITIES.— 
"(1) REQUIRED REDUCTION IN RETIRED PAY.—Except as pro-
vided in subsection (b), the retired pay of a participeint in 
the Flan who is providing spouse coverage (as described in 
paragraph (5)) shall be reduced as follows: 
"(A) STANDARD ANNUITY.—If the annuity coverage 
being providing is a standard annuity, the reduction shall 
be as follows: 
"(i) 
DISABILITY AND NONREGULAR SERVICE RE-
TIREES.—In the case of a person who is entitled to 
retired pay under chapter 61 or chapter 1223 of this 
title, the reduction shall be in whichever of the alter-
native reduction amounts is more favorable to that 
person. 
"(ii) MEMBERS AS OF ENACTMENT OF FLAT-RATE 
REDUCTION.—In the case of a person who first became 
a member of a uniformed service before March 1, 1990, 
the reduction shall be in whichever of the alternative 
reduction amounts is more favorable to that person. 
"(iii) NEW ENTRANTS AFTER ENACTMENT OF FLAT-
RATE REDUCTION.—In the case of a person who first 
becomes a member of a uniformed service on or after 
March 1, 1990, and who is entitled to retired pay 
under a provision of law other than chapter 61 or 
chapter 1223 of this title, the reduction shall be in 
an amount equal to 6^2 percent of the base amount. 
"(iv) ALTERNATIVE REDUCTION AMOUNTS.—For pur-
poses of clauses (i) and (ii), the alternative reduction 
amounts are the following: 
"(I) FLAT-RATE REDUCTION.—An amount equal 
to 6V2 percent of the base amount. 
"(II) AMOUNT UNDER PRE-FLAT-RATE REDUC-
TION.—^An amount equal to 2^2 percent of the first 
$337 (as adjusted after November 1, 1989, under 
paragraph (4)) of the base amount plus 10 percent 
of the remainder of the base amount. 
"(B) RESERVE-COMPONENT ANNUITY.—If the annuity 
coverage being provided is a reserve-component annuity, 
the reduction shall be in whichever of the following 
amounts is more favorable to that person: 
"(i) FLAT-RATE REDUCTION.—^An amount equal to 
6V2 percent of the base amount plus an amount deter-
mined in accordance with regulations prescribed by 
the Secretary of Defense as a premium for the addi-
tional coverage provided through reserve-component 
annuity coverage under the Plan. 
"(ii) AMOUNT UNDER PRE-FLAT-RATE REDUCTION.— 
An amount equal to 2V2 percent of the first $337 
(as adjusted after November 1, 1989, under paragraph 
(4)) of the base amount plus 10 percent of the remain-
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2573 
der of the base amount plus an amount determined 
in accordance with regulations prescribed by the Sec-
retary of Defense as a premium for the additional 
coverage provided through reserve-component annuity 
coverage under the Plan. 
"(2) ADDITIONAL REDUCTION FOR CHILD COVERAGE.—If there Regulations, 
is a dependent child as well as a spouse or former spouse, 
the amount prescribed under paragraph (1) shall be increased 
by an amount prescribed under regulations of the Secretary 
of Defense. 
"(3) No REDUCTION WHEN NO BENEFICIARY.—^The reduction 
in retired pay prescribed by paragraph (1) shall not be 
applicable during any month in which there is no eligible 
spouse or former spouse beneficiary. 
"(4) PERIODIC ADJUSTMENTS.— 
"(A) ADJUSTMENTS FOR INCREASES IN RATES OF BASIC 
PAY.—^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 amounts under paragraph (1) 
with respect to which the percentage factor of 2 V
i
z 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 pay 
in effect on or Eifter the date of such increase in rates 
of basic pay. 
"(B) ADJUSTMENTS FOR RETIRED PAY COLAS.—In addi-
tion to the increase under subparagraph (A), the amounts 
under paragraph (1) with respect to which the percentage 
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 increase under the preced-
ing sentence shall apply only with respect to a person 
who initially participates in the Plan on a date which 
is after both the effective date of such increase under 
section 1401a and the effective date of the rates of basic 
pay upon which that person's retired pay is computed. 
"(5) 
SPOUSE COVERAGE DESCRIBED.—^For the purposes of 
paragraph (1), a participant in the Plan who is providing spouse 
coverage is a participant who— 
"(A) has (i) a spouse or former spouse, or (ii) a spouse 
or former spouse and a dependent child; and 
"(B) has not elected to provide an annuity to a person 
designated by him under section 1448(b)(1) of this title 
or, having made such an election, has changed his election 
in favor of his spouse under section 1450(f) of this title. 
"(b) CHILD-ONLY ANNUITIES.— 
"(1) REQUIRED REDUCTION IN RETIRED PAY.—^The retired 
pay of a participant in the Plan who is providing child-only 
coverage (as described in paragraph (4)) shall be reduced by 
an amount prescribed under regulations by the Secretary of 
Defense. 
"(2) No REDUCTION WHEN NO CHILD.—^There shall be no 
reduction in retired pay under paragraph (1) for any month 
during which the participant has no eligible dependent child. 
110 STAT. 2574 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(3) SPECIAL RULE FOR CERTAIN RCSBP PARTICIPANTS.—In 
the case of a participant in the Plan who is participating 
in the Plan under an election under section 1448(a)(2)(B) of 
this title and who provided child-only coverage during a period 
before the participant becomes entitled to receive retired pay, 
the retired pay of the participant shall be reduced by an Eimount 
prescribed under regulations by the Secretary of Defense to 
reflect the coverage provided under the Plan during the period 
before the participant became entitled to receive retired pay. 
A reduction under this paragraph is in addition to any reduction 
under paragraph (1) and is made without regard to whether 
there is an eligible dependent child during a month for which 
the reduction is made. 
"(4) CHILD-ONLY COVERAGE DEFINED.—^For the purposes of 
this subsection, a participant in the Plan who is providing 
child-only coverage is a participant who has a dependent child 
and who— 
"(A) does not have an eligible spouse or former 
spouse; or 
"(B) has a spouse or former spouse but has elected 
to provide an annuity for dependent children only. 
"(c) REDUCTION FOR INSURABLE INTEREST COVERAGE.— 
"(1) REQUIRED REDUCTION IN RETIRED PAY.—The retired 
pay of a person who has elected to provide an annuity to 
a person designated by him under section 1450(a)(4) of this 
title shall be reduced as follows: 
"(A) STANDARD ANNUITY.—In the case of a person 
providing a standard annuity, the reduction shall be by 
10 percent plus 5 percent for each full five years the individ-
ual designated is younger than that person. 
"(B) RESERVE COMPONENT ANNUITY.—In the case of 
a person providing a reserve-component annuity, the reduc-
tion shall be by an amount prescribed under regulations 
of the Secretary of Defense, 
"(2) LIMITATION ON TOTAL REDUCTION.—^The total reduction 
under paragraph (1) may not exceed 40 percent. 
"(3) DURATION OF REDUCTION.—^The reduction in retired 
pay prescribed by this subsection shall continue during the 
lifetime of the person designated under section 1450(a)(4) of 
this title or until the person receiving retired pay changes 
his election under section 1450(f) of this title. 
"(4) RULE FOR COMPUTATION.—Computation of a member's 
retired pay for purposes of this subsection shall be made with-
out regard to any reduction under section 1409(b)(2) of this 
title. 
"(d) 
DEPOSITS To 
COVER PERIODS WHEN RETIRED PAY NOT 
PAID.— 
"(1) REQUIRED DEPOSITS.—^If a person who has elected to 
participate in the Plan has been awarded retired pay and 
is not entitled to that pay for any period, that person must 
deposit in the Treasury the amount that would otherwise have 
been deducted from his pay for that period. 
"(2) DEPOSITS NOT REQUIRED WHEN PARTICIPANT ON ACTIVE 
DUTY.—^Paragraph (1) does not apply to a person with respect 
to £iny period when that person is on active duty under a 
call or order to active duty for a period of more than 30 
days. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2575 
"(e) DEPOSITS NOT REQUIRED FOR CERTAIN PARTICIPANTS IN 
CSRS.—^When a person who has elected to participate in the Plan 
waives that person's retired pay for the purposes of subchapter 
III of chapter 83 of title 5, that person shall not be required 
to make the deposit otherwise required by subsection (d) as long 
as that waiver is in effect unless, in accordance with section 8339(i) 
of title 5, that person has notified the Office of Personnel Manage-
ment that he does not desire a spouse surviving him to receive 
an annuity under section 8331(b) of title 5. 
"(f) REFUNDS OF DEDUCTIONS NOT ALLOWED.— 
"(1) GENERAL RULE.—^A person is not entitled to refund 
of any amount deducted from retired pay under this section. 
"(2) EXCEPTIONS.—Paragraph (1) does not apply— 
"(A) in the case of a refund authorized by section 
1450(e) ofthis title; or 
"(B) in case of a deduction made through administra-
tive error. 
"(g) 
DISCONTINUATION 
OF PARTICIPATION 
BY PARTICIPANTS 
WHOSE SURVIVING SPOUSES WILL B E ENTITLED TO D I C . — 
"(1) DISCONTINUATION.— 
"(A) CONDITIONS.—^Notwithstanding any other provi-
sion of this subchapter but subject to paragraphs (2) and 
(3), a person who has elected to participate in the Plan 
and who is suffering from a service-connected disability 
rated by the Secretary of Veterans Affairs as totally dis-
abling and has suffered from such disability while so rated 
for a continuous period of 10 or more years (or, if so 
rated for a lesser period, has suffered from such disability 
while so rated for a continuous period of not less than 
5 years from the date of such person's last discharge or 
release from active duty) may discontinue participation 
in the Plan by submitting to the Secretary concerned a 
request to discontinue participation in the Plan. 
"(B) EFFECTIVE DATE.—Participation in the Plan of a 
person who submits a request under subparagraph (A) 
shall be discontinued effective on the first day of the first 
month following the month in which the request under 
subparagraph (A) is received by the Secretary concerned. 
Effective on such date, the Secretary concerned shall dis-
continue the reduction being made in such person's retired 
pay on account of participation in the Plan or, in the 
case of a person who has been required to make deposits 
in the Treasury on account of participation in the Plan, 
such person may discontinue making such deposits effective 
on such date. 
"(C) FORM FOR REQUEST FOR DISCONTINUATION.—Any 
request under this paragraph to discontinue participation 
in the Plan shall be in such form and shall contain such 
information as the Secretary concerned may require by 
regulation. 
"(2) 
CONSENT 
OF BENEFICIARIES REQUIRED.—^A person 
described in paragraph (1) may not discontinue participation 
in the Plan under such paragraph without the written consent 
of the beneficiary or beneficiaries of such person under the 
Plan. 
"(3) INFORMATION ON PLAN TO BE PROVIDED BY SECRETARY 
CONCERNED.— 
110 STAT. 2576 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(A) 
INFORMATION TO BE PROVIDED PROMPTLY TO 
PARTICIPANT.—^The Secretary 
concerned 
shall 
furnish 
promptly to each person who files a request under para-
graph (1) to discontinue participation in the Plan a written 
statement of the advantages of participating in the Plan 
and the possible disadvantages of discontinuing participa-
tion. 
"(B) RIGHT TO WITHDRAW DISCONTINUATION REQUEST.— 
A person may withdraw a request made under paragraph 
(1) if it is withdrawn within 30 days after having been 
submitted to the Secretary concerned. 
"(4) REFUND OF DEDUCTIONS FROM RETIRED PAY.—^Upon 
the death of a person described in paragraph (1) who discon-
tinued participation in the Plan in accordance with this sub-
section, any amount deducted from the retired pay of that 
person under this section shall be refunded to the person's 
surviving spouse. 
"(5) RESUMPTION OF PARTICIPATION IN PLAN.— 
"(A) CONDITIONS FOR RESUMPTION.—A person described 
in paragraph (1) who discontinued participation in the 
Plan may elect to participate again in the Plan if— 
"(i) after having discontinued participation in the 
Plan the Secretary of Veterans Affairs reduces that 
person's service-connected disability rating to a rating 
of less than total; and 
"(ii) that person applies to the Secretary concerned, 
within such period of time after the reduction in such 
person's service-connected disability rating has been 
made as the Secretary concerned may prescribe, to 
again participate in the Plan and includes in such 
application such information as the Secretary con-
cerned may require. 
"(B) EFFECTIVE DATE OF RESUMED COVERAGE.—Such 
person's participation in the Plan under this paragraph 
is effective beginning on the first day of the month after 
the month in which the Secretary concerned receives the 
application for resumption of participation in the Plan. 
"(C) RESUMPTION OF CONTRIBUTIONS.—^When a person 
elects to participate in the Plan under this paragraph, 
the Secretary concerned shall begin making reductions in 
that person's retired pay, or require such person to make 
deposits in the Treasury under subsection (d), as appro-
priate, effective on the effective date of such participation 
under subparagraph (B). 
"(h) INCREASES IN REDUCTION WITH INCREASES IN RETIRED 
PAY.— 
"(1) GENERAL RULE.—Whenever retired pay is increased 
under section 1401a of this title (or any other provision of 
law), the amount of the reduction to be made under subsection 
(a) or (b) in the retired pay of any person shall be increased 
at the same time and by the same percentage as such retired 
pay is so increased. 
"(i) RECOMPUTATION OF REDUCTION UPON RECOMPUTATION OF 
RETIRED PAY.—^When the retired pay of a person who first became 
a member of a uniformed service on or afl«r August 1, 1986, 
and who is a participant in the Plan is recomputed under section 
1410 of this title upon the person's becoming 62 years of age. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2577 
the amount of the reduction in such retired pay under this section 
shall be recomputed (effective on the effective date of the recomputa-
tion of such retired pay under section 1410 of this title) so as 
to be the amount equal to the amount of such reduction that 
would be in effect on that date if increases in such retired pay 
under section 1401a(b) of this title, and increases in reductions 
in such retired pay under subsection (h), had been computed as 
provided in paragraph (2) of section 1401a(b) of this title (rather 
than under paragraph (3) of that section). 
*
*
§ 1453. Recovery of amounts erroneously paid 
"(a) RECOVERY.—^In addition to any other method of recovery 
provided by law, the Secretary concerned may authorize the recov-
ery of any amount erroneously paid to a person under this sub-
chapter by deduction from later payments to that person. 
"(b) AUTHORITY TO WAIVE RECOVERY.—^Recovery of an amount 
erroneously paid to a person under this subchapter is not required 
if, in the judgment of the Secretary concerned and the Comptroller 
General— 
"(1) there has been no fault by the person to whom the 
amount was erroneously paid; and 
"(2) recovery of such amount would be contrary to the 
purposes of this subchapter or against equity and good con-
science. 
*
*
§ 1454. Correction of administrative errors 
"(a) AUTHORITY.—^The Secretary concerned may, under regula-
tions prescribed under section 1455 of this title, correct or revoke 
any election under this subchapter when the Secretary considers 
it necessary to correct an administrative error. 
"(b) FINALITY.—^Except when procured by fraud, a correction 
or revocation under this section is final and conclusive on all officers 
of the United States. 
^
§ 1455. Regulations 
President. 
"(a) IN GENERAL.—^The President shall prescribe regulations 
to carry out this subchapter. Those regulations shall, so far as 
practicable, be uniform for the uniformed Services. 
"(b) NOTICE OF ELECTIONS.—^Regulations prescribed under this 
section shall provide that before the date on which a member 
becomes entitled to retired pay— 
"(1) if the member is married, the member and the mem-
ber's spouse shall be informed of the elections available under 
section 1448(a) of this title and the effects of such elections; 
and 
"(2) 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. 
"(c) PROCEDURE FOR DEPOSITING CERTAIN RECEIPTS.—^Regula-
tions prescribed under this section shall establish procedures for 
depositing the amounts referred to in sections 1448(g), 1450(k)(2), 
and 1452(d) of this title. 
"(d) PAYMENTS TO GUARDL^NS AND FIDUCIARIES.— 
"(1) IN GENERAL.—^Regulations prescribed under this sec-
tion shall provide procedures for the payment of an annuity 
under this subchapter in the case of— 
110 STAT. 2578 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(A) a person for whom a guardian or other fiduciary 
has been appointed; and 
"(B) a minor, mentally incompetent, or otherwise 
leggdly disabled person for whom a gusirdian or other fidu-
ciary has not been appointed. 
"(2) AUTHORIZED PROCEDURES.—^The regulations under 
paragraph (1) may include provisions for the following: 
"(A) In the case of an annuitant referred to in para-
graph (1)(A), payment of the annuity to the appointed 
guardian or other fiduciary. 
"(B) In the case of an annuitant referred to in para-
graph (1)(B), pajnnent of the annuity to any person who, 
in the judgment of the Secretary concerned, is responsible 
for the care of the annuitant. 
"(C) Subject to subparagraphs (D) and (E), a require-
ment for the payee of an annuity to spend or invest the 
amounts paid on behalf of the annuitant solely for benefit 
of the annuitant. 
"(D) Authority for the Secretary concerned to permit 
the payee to withhold from the annuity payment such 
amount, not in excess of 4 percent of the annuity, as 
the Secretary concerned considers a reasonable fee for the 
fiduciary services of the payee when a court appointment 
order provides for payment of such a fee to the payee 
for such services or the Secretary concerned determines 
that payment of a fee to such payee is necessary in order 
to obtain the fiduciary services of the payee. 
"(E) Authority for the Secretary concerned to require 
the payee to provide a surety bond in an amount sufficient 
to protect the interests of the annuitant and to pay for 
such bond out of the annuity. 
"(F) A requirement for the payee of an annuity to 
maintain and, upon request, to provide to the Secretary 
concerned an accounting of expenditures and investments 
of amounts paid to the payee. 
"(G) In the case of an annuitant referred to in para-
graph (1)(B)— 
"(i) procedures for determining incompetency and 
for selecting a payee to represent the annuitant for 
the purposes of this section, including provisions for 
notifying the annuitant of the actions being taken to 
make such a determination and to select a representa-
tive payee, an opportunity for the Einnuitant to review 
the evidence being considered, and an opportunity for 
the annuitant to submit additional evidence before the 
determination is made; and 
"(ii) standards for determining 
incompetency, 
including standards for determining the sufficiency of 
medicgJ evidence and other evidence. 
"(H) Provisions for any other matter that the President 
considers appropriate in connection with the payment of 
an annuity in the case of a person referred to in paragraph 
(1). 
"(3) 
LEGAL EFFECT OF PAYMENT TO GUARDIAN OR FIDU-
CIARY.—^An annuity paid to a person on behalf of an annuitant 
in accordance with the regulations prescribed pursuant to para-
graph (1) discharges the obligation of the United States for 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2579 
pajrment to the annuitant of the amount of the annuity so 
paid.". 
SEC. 635. INCREASES IN SURVIVOR BENEFIT PLAN CONTRIBUTIONS 
TO BE EFFECTIVE CONCURRENTLY WITH PAYMENT OF 
RETIRED PAY COST-OF-LIVING INCREASES. 
(a) SURVIVOR BENEFIT PLAN.—Section 1452(h) of title 10, 
United States Code, as amended by section 634, is amended by 
adding at the end the following new paragraph: 
"(2) COORDINATION WHEN PAYMENT OF INCREASE IN RETIRED 
PAY IS DELAYED BY LAW.— 
"(A) IN GENERAL.—^Notwithstanding paragraph (1), 
when the initial pajnnent of an increase in retired pay 
under section 1401a of this title (or any other provision 
of law) to a person is for a month that begins later than 
the effective date of that increase by reason of the applica-
tion of subsection (b)(2)(B) of such section (or section 631(b) 
of Public Law 104-106 (110 Stat. 364)), then the amount 
of the reduction in the person's retired pay shall be effective 
on the date of that initial payment of the increase in 
retired pay rather than the effective date of the increase 
in retired pay. 
"(B) 
DELAY NOT TO AFFECT COMPUTATION OF ANNU-
ITY.—Subparagraph (A) may not be construed as dela3dng, 
for purposes of determining the amount of a monthly annu-
ity under section 1451 of this title, the effective date of 
an increase in a base amount under subsection (h) of such 
section from the effective date of an increase in retired 
pay under section 1401a of this title to the date on which 
the initial payment of that increase in retired pay is made 
in accordance with subsection (b)(2)(B) of such section.". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) Applicability, 
shall apply with respect to retired pay payable for months beginning 
10 USC 1452 
on or after the date of the enactment of this Act. 
"°*®' 
SEC. 636. AMENDMENTS TO THE UNIFORMED SERVICES FORMER 
SPOUSES' PROTECTION ACT. 
(a) MANNER OF SERVICE OF PROCESS.—Subsection (b)(1)(A) of 
section 1408 of title 10, United States Code, is amended by striking 
out "certified or registered mail, return receipt requested" and 
inserting in lieu thereof "facsimile or electronic transmission or 
by mail". 
(b) SUBSEQUENT COURT ORDER FROM ANOTHER STATE.—Sub-
section (d) of such section is amended by adding at the end the 
following new paragraph: 
"(6)(A) The Secretary concerned may not accept service of a 
court order that is an out-of State modification, or comply with 
the provisions of such a court order, unless the court issuing that 
order has jurisdiction in the manner specified in subsection (c)(4) 
over both the member and the spouse or former spouse involved. 
"(B) A court order shall be considered to be an out-of-State 
modification for purposes of this paragraph if the order— 
"(i) modifies a previous court order under this section upon 
which pajonents under this subsection are based; and 
"(ii) is issued by a court of a State other than the State 
of the court that issued the previous court order.". 
110 STAT. 2580 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 637. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY 
WAIVER OF RETIRED PAY TO ENHANCE CIVIL SERVICE 
RETIREMENT ANNUITY. 
(a) CIVIL SERVICE RETIREMENT AND DISABILITY SYSTEM.—(1) 
Subsection (c) of section 8332 of title 5, United States Code, is 
amended by adding at the end the following new paragraph: 
"(4) If, after January 1, 1997, an employee or Member waives 
retired pay that is subject to a court order for which there has 
been effective service on the Secretary concerned for purposes of 
section 1408 of title 10, the military service on which the retired 
pay is based may be credited as service for purposes of this sub-
chapter only if the employee or Member authorizes the Director 
to deduct and withhold from the annuity payable to the employee 
or Member under this subchapter an aihount equal to the amount 
that, if the annuity pa3anent was instead a pajonent of the employ-
ee's or Member's retired pay, would have been deducted and with-
held and paid to the former spouse covered by the court order 
under such section 1408. The amount deducted and withheld under 
this paragraph shall be paid to that former spouse. The period 
of civil service employment by the employee or Member shall not 
be taken into consideration in determining the amount of the deduc-
tions and withholding or the amount of the pa3anent to the former 
Regulations. 
spouse. The Director of the Oftlce of Personnel Management shall 
prescribe regulations to carry out this paragraph.". 
(2) Paragraph (1) of such subsection is amended by striking 
out "Except as provided in paragraph (2)" and inserting in lieu 
thereof "Except as provided in paragraphs (2) and (4)". 
(b) FEDERAL EMPLOYEES' RETIREMENT SYSTEM.—(1) Subsection 
(c) of section 8411 of title 5, United States Code, is amended 
by adding at the end the following new paragraph: 
"(5) If, after January 1, 1997, an employee or Member waives 
retired pay that is subject to a court order for which there has 
been effective service on the Secretary concerned for purposes of 
section 1408 of title 10, the military service on which the retired 
pay is based may be credited as service for purposes of this chapter 
only if the employee or Member authorizes the Director to deduct 
and withhold from the annuity payable to the employee or Member 
under this subchapter an amount equal to the amount that, if 
the annuity payment was instead a pajmaent of the employee's 
or Member's retired pay, would have been deducted and withheld 
and paid to the former spouse covered by the court order under 
such section 1408. The amount deducted and withheld under this 
paragraph shall be paid to that former spouse. The period of civil 
service employment by the employee or Member shall not be taken 
into consideration in determining the amount of the deductions 
and withholding or the amount of the pa3mient to the former spouse. 
Regulations. 
The Director of the Office of Personnel Management shall prescribe 
regulations to carry out this paragraph.". 
(2) Paragraph (1) of such subsection is amended by striking 
"Except as provided in paragraph (2) or (3)" Eind inserting "Except 
as provided in paragraphs (2), (3), and (5)". 
5 use 8332 note. 
(c) EFFECTIVE DATE.—^The amendments made by subsections 
(a) and (b) shall take effect on January 1, 1997. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2581 
SEC. 638. ADMINISTRATION OF BENEFITS FOR SO-CALX£D MINIMUM 
INCOME WIDOWS. 
(a) ADJUSTED ANNUAL INCOME LIMITATION APPLIABLE TO ELIGI-
BILITY FOR INCOME SUPPLEMENT.—(1) Section 4 of Public Law 92-
425 (10 U.S.C. 1448 note) is amended— 
(A) in subsection (aX3), by striking out "$2,340" and insert-
ing in lieu thereof "the maximum annual rate of pension in 
effect under section 1541(b) of title 38, United States Code"; 
and 
(B) in the first sentence of subsection (b), by striking out 
"$2,340 a yesir" and inserting in lieu thereof "the maximum 
annual rate of pension in effect under section 1541(b) of title 
38, United States Code". 
(2) Subsection (c) of such section is repealed. 
(b) PAYMENTS TO B E MADE BY SECRETARY OF VETERANS 
AFFAIRS.—Such section is further amended by adding at the end 
the following new subsection: 
"(e)(1) Payment of annuities under this section shall be made 
by the Secretary of Veterans Affairs. If appropriate for administra-
tive convenience (or otherwise determined appropriate by the Sec-
retary of Veterans Affairs), that Secretary may combine a payment 
to any person for any month under this section with any other 
payment for that month under laws administered by the Secretary 
so as to provide that person with a single pajonent for that month. 
"(2) The Secretary concerned shall annually transfer to the 
Secretary of Veterans Affairs such amounts as may be necessary 
for pajnnents by the Secretary of Veterans Affairs under this section 
and for costs of the Secretary of Veterans Affairs in administering 
this section. Such transfers shall be made from amounts that would 
otherwise be used for pa3mient of annuities by the Secretary con-
cerned under this section. The authority to make such a transfer 
is in addition to any other authority of the Secretary concerned 
to transfer funds for a purpose other than the purpose for which 
the funds were originally made available. In the case of a transfer 
by the Secretary of a military department, the provisions of section 
2215 of title 10, United States Code, do not apply. 
"(3) The Secretary concerned shall promptly notify the Secretary 
Notification. 
of Veterans Affairs of any change in beneficiaries under this sec-
tion.". 
(c) CLARIFICATION OF CONTINUING EUGIBLITY FOR DEPARTMENT 
OF VETERANS AFFAIRS PENSION.—Such section, as amended by sub-
section (aX2), is further amended by inserting after subsection 
(b) the following new subsection (c): 
"(c) The amount of an annuity payable under this section, 
although counted as income in determining the amount of any 
pension described in subsection (a)(2) of this section, shall not 
be considered to affect the eligiblity of the recipient of such annuity 
for such pension, even though, as a result of including the amount 
of the annuity as income, no amount of such pension is due.". 
(d) EFFECTIVE DATE.—^The amendments made by this section Applicability. 
take effect on July 1, 1997, and apply with respect to payments 
lO USC 1448 
of benefits for any month after Jime 1997. 
™
*
®
-
110 STAT. 2582 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Subtitle E—Other Matters 
SEC. 651. DISCRETIONARY ALLOTMENT OF PAY, INCLUDING RETIRED 
OR RETAINER PAY. 
(a) ALLOTMENTS AUTHORIZED.—Section 701 of title 37, United 
States Code, is amended by striking out subsection (d) and inserting 
in lieu thereof the following new subsections: 
Regulations. 
"(d) Under regulations prescribed by the Secretary of Defense, 
a member of the Army, Navy, Air Force, or Marine Corps and 
a contract surgeon of the Army, Navy, or Air Force may make 
allotments from the pay of the member or surgeon for the purpose 
of supporting relatives or for any other purpose that the Secretary 
considers proper. Such allotments may include a maximum of six 
allotments considered to be discretionary under such regulations. 
For a member or former member entitled to retired or retainer 
pay, a maximum of six discretionary allotments authorized during 
active military service may be continued into retired status, and 
new discretionary allotments may be authorized so long as the 
total number of discretionary allotments does not exceed six. 
"(e) If an allotment made under subsection (d) is paid to the 
allottee before the disbursing officer receives a notice of discontinu-
ance from the officer required by regulation to furnish the notice, 
the amount of the allotment shall be credited to the disbursing 
officer. If an allotment is erroneously paid because the officer 
required by regulation to so report failed to report the death of 
the allotter or any other fact that makes the allotment not payable, 
the amount of the payment not recovered from the allottee shall, 
if practicable, be collected by the Secretary concerned from the 
officer who failed to make the report.". 
37 use 701 note. 
(b) ISSUANCE OF REGULATIONS.—^The Secretaries of the military 
departments shall prescribe regulations under subsection (d) of 
section 701 of title 37, United States Code, as added by subsection 
(a), not later than October 1, 1997. 
SEC. 652. REIMBURSEMENT FOR ADOPTION EXPENSES INCURRED IN 
ADOPTIONS THROUGH PRIVATE PLACEMENTS. 
(a) DEPARTMENT OF DEFENSE.—Section 1052(g) of title 10, 
United States Code, is amended— 
(1) in paragraph (1), by striking out "State or local govern-
ment" and all that follows through the period at the end of 
the first sentence and inserting in lieu thereof "qualified adop-
tion agency."; and 
(2) by adding at the end the following new paragraph: 
"(3) The term 'qualified adoption agency* means any of 
the following: 
"(A) A State or local government agency which has 
responsibility under State or local law for child placement 
through adoption. 
"(B) A nonprofit, voluntary adoption agency which is 
authorized by State or local law to place children for adop-
tion. 
"(C) Any other source authorized by a State to provide 
adoption placement if the adoption is supervised by a court 
under State or local law.". 
(b) COAST GUARD.—Section 514(g) of title 14, United States 
Code, is amended— 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2583 
(1) in paragraph (1), by striking out "State or local govern-
ment" and all that follows through the period at the end of 
the first sentence and inserting in lieu thereof "qualified adop-
tion agency."; and 
(2) by adding at the end the following new paragraph: 
"(3) The term 'qualified adoption agenc/ means any of 
the following: 
"(A) A State or local government agency which has 
responsibility under State or local law for child placement 
through adoption. 
"(B) A nonprofit, voluntary adoption agency which is 
authorized by State or local law to place children for adop-
tion. 
"(C) Any other source authorized by a State to provide 
adoption placement if the adoption is supervised by a court 
under State or local law.". 
SEC. 653. WAIVER OF RECOUPMENT OF AMOUNTS WITHHELD FOR TAX 
PURPOSES FROM CERTAIN SEPARATION PAY. 
(a) IN GENERAL.—Section 1174(h)(2) of title 10, United States 
Code, is amended by inserting before the period at the end of 
the first sentence the following: ", less the amount of Federgd 
income tax withheld from such pay (such withholding being at 
the flat withholding rate for Federal income tax withholding, as 
in effect pursuant to regulations prescribed under chapter 24 of 
the Internal Revenue Code of 1986)". 
(b) EFFECTIVE DATE.—^The amendments made by this section Applicability, 
shall take effect on October 1, 1996, and shall apply to payments 
10 USC 1174 
of separation pay, severance pay, or readjustment pay that are 
made after September 30, 1996. 
SEC. 654. TECHNICAL CORRECTION CLARIFYING LIMITATION ON FUR-
NISHING CLOTHING OR ALLOWANCES FOR ENUSTED 
NATIONAL GUARD TECHNICIANS. 
Section 418(c) of title 37, United States Code, is amended 
by striking out "for which a uniform allowance is paid under section 
415 or 416 of this title" and inserting in lieu thereof "for which 
clothing is furnished or a uniform allowance is paid under this 
section". 
SEC. 655. 
TECHNICAL 
CORRECTION 
TO 
PRIOR 
AUTHORITY 
FOR 
PAY-
MENT 
OF 
BACKPAY 
TO 
CERTAIN 
PERSONS. 
Section 634 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 366) is amended— 
(1) in subsection (b)(1), by striking out "Island of Bataan" 
and inserting in lieu thereof "peninsula of Bataan or island 
of Corregidor"; and 
(2) in subsection (c), by inserting after the first sentence 
the following: "For the purposes of this subsection, the Secretary 
of War shall be deemed to have determined that conditions 
in the Philippines during the specified period justified payment 
under applicable regulations of quarters and subsistence allow-
ances at the maximum special rate for duty where emergency 
conditions existed.". 
note. 
110 STAT. 2584 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SOUSCapp. 
SEC. 656. COMPENSATION FOR PERSONS AWARDED PRISONER OF 
2005 note. 
WAR MEDAL WHO DID NOT PREVIOUSLY RECEIVE COM-
PENSATION AS A PRISONER OF WAR. 
(a) AUTHORITY TO MAKE PAYMENTS.—^The Secretary of the mili-
tary department concerned shall make pajonents in the manner 
provided in section 6 of the War Claims Act of 1948 (50 U.S.C. 
App. 2005) to (or on behalf of) any person described in subsection 
(b) who submits an application for such payment in accordance 
with subsection (d). 
(b) ELIGIBLE PERSONS.—^This section applies with respect to 
a member or former member of the Armed Forces who— 
(1) has received the prisoner of war medal under section 
1128 of title 10, United States Code; and 
(2) has not previously received a pajrment under section 
6 of the War Claims Act of 1948 (50 U.S.C. App. 2005) with 
respect to the period of internment for which the person 
received the prisoner of war medal. 
(c) AMOUNT OF PAYMENT.—^The amount of the payment to any 
person under this section shall be determined based upon the 
provisions of section 6 of the War Claims Act of 1948 that are 
applicable with respect to the period of time during which the 
internment occurred for which the person received the prisoner 
of war medal. 
(d) ONE-YEAR PERIOD FOR SUBMISSION OF APPLICATIONS.—A 
payment may be made by reason of this section only in the case 
of a person who submits an application to the Secretary concerned 
for such payment during the one-year period beginning on the 
date of the enactment of this Act. Any such application shall be 
submitted in such form and manner as the Secretary may require. 
SEC. 657. PAYMENTS 
TO CERTAIN 
PERSONS 
CAPTURED AND 
INTERNED BY NORTH VIETNAM. 
(a) PAYMENT AUTHORIZED TO ELIGIBLE PERSONS.—(1) Using 
amounts made available under subsection (g), the Secretary of 
Defense shall make a pa5anent under this section to a person 
who demonstrates to the satisfaction of the Secretary of Defense 
that the person was captured and incarcerated by the Democratic 
Republic of Vietnam as a result of the participation by the person 
in operations conducted under OPLAN 34A or its predecessor. 
(2) Using amounts made available under subsection (g), the 
Secretary of Defense shall also make a payment under this section 
to a person who demonstrates to the satisfaction of the Secretary 
of Defense that the person— 
(A) served as a Vietnamese operative pursuant to 
OPLAN 35; 
(B) was captured and incarcerated by North Vietnamese 
forces as a result of the participation by the person in operations 
in Laos or along the Lao-Vietnamese border pursuant to 
OPLAN 35; 
(C) remained 
in captivity 
after 
1973 (or died in 
captivity); and 
(D) has not previously received payment from the United 
States for the period spent in captivity. 
(3) A payment may not be made under this section to, or 
with respect to, a person who the Secretary of Defense determines, 
based on the available evidence, served in the Peoples Army of 
Vietnam or provided active assistance to the Government of the 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2585 
Democratic Republic of Vietnam during the period from 1958 
through 1975. 
(b) EFFECT OF DEATH OF ELIGIBLE PERSON.—^In the case of 
a decedent who would have been eligible for a payment under 
this section if alive, the documentation required under subsection 
(a) may be provided by survivors of the decedent, and the pajnnent 
under this section shall be made to survivors of the decedent 
in the following order: 
(1) To the surviving spouse. 
(2) If there is no surviving spouse, to the surviving children 
(including natural children and adopted children) of the 
decedent, in equal shares. 
(c) AMOUNT PAYABLE.—^The amount payable to, or with respect 
to, a person under this section is $40,000. If a person can dem-
onstrate to the Secretary of Defense that confinement or incarcer-
ation exceeded 20 years, the Secretary may pay an additional $2,000 
for each full year in excess of 20 (and a proportionate amount 
for a partial year), but the total amount paid to, or with respect 
to, a person under this section may not exceed $50,000. 
(d) TIME LIMITATIONS.—(1) To be eligible for a payment under 
this section, a claimant must file a claim for such payment with 
the Secretary of Defense within 18 months of the effective date 
of the regulations implementing this section. 
(2) Not later than 18 months after receiving a claim for pajonent 
under this section, the Secretary shall determine the eligibility 
of the claimant for pa5anent of the claim. Subject to subsection 
(f), if the Secretary determines that the claimant is eligible for 
the pa3mtient, the Secretary shall promptly pay the claim. 
(e) REGULATIONS.—(1) The Secretary of Defense shall prescribe 
regulations to carry out this section. Such regulations shall include 
procedures by which persons may submit claims for payment under 
this section. Such regulations shall be prescribed not later than 
six months after the date of the enactment of this Act. 
(2) The Secretary of Defense may establish guidelines regarding 
what constitutes adequate documentation for determining whether 
a person satisfies the requirements specified in subsection (a) 
regarding eligibility for a payment under this section. Such guide-
lines shall be established in consultation with the heads of other 
agencies of the (rovemment involved with OPLAN 34A or its prede-
cessor or OPLAN 35. 
(f) LIMITATION ON DISBURSEMENT.—(1) The actual disbursement 
of a payment under this section may be made only to the person 
who is eligible for the pa3mient under subsection (a) or (b) and 
only— 
(A) upon the appearance of that person, in person, at 
any designated disbursement office in the United States or 
its territories; or 
(B) at such other location or in such other manner as 
that person may request in writing. 
(2) In the case of a claim approved for pajnnent but not dis-
bursed as a result of operation of paragraph (1), the Secretary 
of Defense shall hold the funds in trust for the person in an 
interest bearing account until such time as the person makes an 
election under such paragraph. 
(g) FUNDING.—^To the extent provided in advance for this section 
in appropriations Acts, of amounts authorized to be appropriated 
110 STAT. 2586 
PUBLIC LAW 104-201^SEPT. 23, 1996 
under section 301(24) for this purpose, $20,000,000 shall be avail-
able until expended for pa5anents under this section. 
(h) PAYMENT IN FULL SATISFACTION OF CLAIMS AGAINST THE 
UNITED STATES.—^The acceptance of pajrment by, or with respect 
to, a person under this section shall be in full satisfaction of all 
claims by or on behalf of that individual against the United States 
arising from operations under OPLAN 34A or its predecessor or 
OPLAN 35. 
(i) ATTORNEY FEES.—^Notwithstanding any contract, the rep-
resentative of a person may not receive, for services rendered in 
connection with the claim of, or with respect to, a person under 
this section, more than 10 percent of a pa3mient made under this 
section on that claim. 
(j) No RIGHT TO JUDICIAL REVIEW.^AII determinations by the 
Secretary of Defense pursuant to this section are final and conclu-
sive, notwithstanding any other provision of law. Claimants under 
this section have no right to judicial review, and such review 
is specifically precluded. 
(k) REPORTS TO CONGRESS.—(1) Not later than 24 months after 
the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report on the pajonent of claims under 
this section. 
(2) After the submission of the report under paragraph (1), 
the Secretary shall periodically submit to Congress a report on 
the status of payment of claims under this section. 
TITLE VII—HEALTH CARE PROVISIONS 
Subtitle A—^Health Care Services 
Sec. 701. Preventive health care screening for colon and prostate cancer. 
Sec. 702. Implementation of requirement for Selected Reserve dental insurance 
plan. 
Sec. 703. Dental insurance plan for military retirees and unremarried surviving 
spouses and certain other dependents of military retirees. 
Sec. 704. Plan for health care coverage for children with medical conditions caused 
by parental exposure to chemical munitions while serving as members 
of the Armed Forces. 
Subtitle B—TRICARE Program 
Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees. 
Sec. 712. Improved information exchange between mihtary treatment facilities and 
TRICARE program contractors. 
Sec. 713. Plans for medicare subvention demonstration programs. 
Subtitle C—Uniformed Services Treatment Facilities 
Sec. 721. Definitions. 
Sec. 722. Inclusion of designated providers in uniformed services health care 
delivery system. 
Sec. 723. Provision of uniform benefit by designated providers. 
Sec. 724. Enrollment of covered beneficiaries. 
Sec. 725. AppUcation of CHAMPUS payment rules. 
Sec. 726. Payments for services. 
Sec. 727. Repeal of superseded authorities. 
Subtitle D—Other Changes to Existing Laws Regarding Health Care 
Management 
Sec. 731. Authority 
to waive 
CHAMPUS 
exclusion 
regarding 
noimiedically 
necessary treatment in connection with certain cUnical trials. 
Sec. 732. Exception to maximum allowable payments to individual health-care 
providers imder CHAMPUS. 
Sec. 733. Codification of annual authority to credit CHAMPUS refunds to ciurent 
year appropriation. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2587 
Sec. 734. Exceptions to reqmrements regarding obtaining nonavailability-of-health-
care statements. 
Sec. 735. Enhancement of third-party collection and secondary payer authorities 
under CHAMPUS. 
Subtitle E—Other Matters 
Sec. 741. Alternatives to active duty service obligation under Armed Forces Health 
Professions Scholarship and Financial Assistance program and Uni-
formed Services University of the Health Sciences. 
Sec. 742. External peer review for defense health program extramural medical 
research involving human subjects. 
Sec. 743. Independent research regarding Gulf War sjmdrome. 
Sec. 744. Comptroller General review of health care activities of Department of 
Defense relating to Gulf War illnesses. 
Sec. 745. Report regarding specialized treatment faciUty program. 
Sec. 746. Study of means of ensuring uniformity in provision of medical and dental 
care for members of reserve components. 
Sec. 747. Sense 
of 
Congress 
regarding 
tax 
treatment 
of 
Armed 
Forces 
Health Professions Scholarship and Financial Assistance progreim. 
Subtitle A—^Health Care Services 
SEC. 701. 
PREVENTIVE HEALTH CARE 
SCREENING FOR COLON AND 
PROSTATE 
CANCER. 
(a) MEMBERS AND FORMER MEMBERS.—(1) Section 1074d of 
title 10, United States Code, is amended— 
(A) in subsection (a)— 
(i) by inserting "(1)" before "Female"; and 
(ii) by adding at the end the following new paragraph: 
"(2) Male members and former members of the uniformed serv-
ices entitled to medical care under section 1074 or 1074a of this 
title shall also be entitled to preventive health care screening for 
colon or prostate cancer at such intervals and using such screening 
methods as the administering Secretaries consider appropriate."; 
and 
(B) in subsection (b), by adding at the end the following 
new paragraph: 
"(8) Colon cancer screening, at the intervals and using 
the screening methods prescribed under subsection (a)(2).". 
(2)(A) The heading of such section is amended to read as 
follows: 
^§1074d. Certain 
primary 
and 
preventive 
health 
care 
services 
(B) The item relating to such section in the table of sections 
at the beginning of chapter 55 of such title is amended to read 
as follows: 
"1074d. Certain primary and preventive health care services.". 
(b) DEPENDENTS.—(1) Section 1077(a) of such title is amended 
by adding at the end the following new paragraph: 
"(14) Preventive health care screening for colon or prostate 
cancer, at the intervals and using the screening methods pre-
scribed under section 1074d(a)(2) of this title.". 
(2) Section 1079(a)(2) of such title is amended— 
(A) in the matter preceding subparagraph (A), by inserting 
"the schedule and method of colon and prostate cancer 
screenings," after "pap smears and mammograms,"; and 
(B) in subparagraph (B), by inserting "or colon and prostate 
cancer screenings" after "pap smears and mammograms". 
110 STAT. 2588 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 702. IMPLEMENTATION OF REQUIREMENT FOR SELECTED 
RESERVE DENTAL INSURANCE PLAN. 
(a) IMPLEMENTATION BY CONTRACT.—Subsection (a) of section 
1076b of title 10, United States Code, is amended— 
(1) by inserting "(1)" after "(a) AUTHORITY TO ESTABLISH 
PLAN.—"; 
(2) by designating the third sentence as 
paragraph 
(3); and 
(3) by inserting after paragraph (1), as designated by para-
graph (1) of this subsection, the following new paragraph: 
"(2) The Secretary shall provide benefits under the plan through 
one or more contracts awarded after full and open competition.". 
Procedures. 
(b) COLLECTION OF PREMIUMS OF MEMBERS NOT RECEIVING 
BASIC PAY,—Subsection (b)(3) of such section is amended by adding 
at the end the following: "In the case of a member who does 
not receive basic pay, the Secretary of Defense shall establish 
procedures for the collection of the member's share of the premium 
for coverage.". 
(c) SCHEDULE FOR IMPLEMENTATION.—Section 705(b) of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106; 110 Stat. 373; 10 U.S.C. 1076b note) is amended— 
(1) in the first sentence, by striking out "October 1, 1996" 
and inserting in lieu thereof "October 1, 1997"; and 
(2) by striking out "fiscal year 1996" both places it appears 
and inserting in lieu thereof "fiscal years 1996 and 1997". 
SEC. 703. DENTAL INSURANCE PLAN FOR MILITARY RETIREES AND 
UNREMARRIED SURVIVING SPOUSES AND CERTAIN OTHER 
DEPENDENTS OF MILITARY RETIREES. 
(a) ESTABLISHMENT OF DENTAL PLAN.—(1) Chapter 55 of title 
10, United States Code, is amended by inserting after section 1076b 
the following new section: 
^§ 1076c. Dental insurance plan: certain retirees and their 
surviving spouses and other dependents 
"(a) REQUIREMENT FOR PLAN.—^The Secretary of Defense shall 
establish a dental insurance plan for military retirees, certain 
unremarried surviving spouses, and dependents in accordance with 
this section. 
"(b) PERSONS ELIGIBLE FOR PLAN.—^The following persons are 
eligible to enroll in the dental insurance plan established under 
subsection (a): 
"(1) Members of the Armed Forces who are entitled to 
retired pay. 
"(2) Members of the Retired Reserve who would be entitled 
to retired pay under chapter 1223 of this title but for being 
under 60 years of age. 
"(3) Eligible dependents of a member described in para-
graph (1) or (2) who are covered by the enrollment of the 
member in the plan. 
"(4) The unremarried surviving spouse and eligible child 
dependents of a deceased member— 
"(A) who dies while in a status described in paragraph 
(Dor (2); or 
"(B) who is described in section 1448(d)(1) of this title. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2589 
"(c) PREMIUMS.—(1) A member enrolled in the dental insurance 
plan established under subsection (a) shall pay the premiums 
charged for the insurance coverage. 
"(2) The amount of the premiums payable by a member entitled 
to retired pay shall be deducted sind withheld from the retired 
pay and shall be disbursed to pay the premiums. The regulations 
prescribed under subsection (h) shall specify the procedures for 
pajnntient of the premiums by other enrolled members and by 
enrolled surviving spouses. 
"(d) BENEFITS AVAILABLE UNDER THE PLAN.—^The dental insur-
ance plan established under subsection (a) shall provide benefits 
for basic dental care and treatment, including diagnostic services, 
preventative 
services, 
basic 
restorative 
services 
(including 
endodontics), surgical services, and emergency services. 
"(e) COVERAGE.—(1) The Secretary shall prescribe a minimum 
required period for enrollment by a member or surviving spouse 
in the dental insurance plan established under subsection (a). 
"(2) The dental insurance plan shall provide for voluntary 
enrollment of participants and shall authorize a member or eligible 
unremarried surviving spouse to enroll for self only or for self 
and eligible dependents. 
"(f) TERMINATION OF ENROLLMENT.—The Secretary shall termi-
nate the enrollment of any enroUee, and any eligible dependents 
of the enroUee covered by the enrollment, in the dental insurance 
plan established under subsection (a) upon the occurrence of the 
following: 
"(1) In the case of an enrollment under subsection (b)(1), 
termination of the member's entitlement to retired pay. 
"(2) In the case of an enrollment under subsection (b)(2), 
termination of the member's status as a member of the Retired 
Reserve. 
"(3) In the case of an enrollment under subsection (b)(4), 
remarriage of the surviving spouse. 
"(g) CONTINUATION OF DEPENDENTS' ENROLLMENT UPON DEATH 
OF ENROLLEE.—^Doverage of a dependent in the dental insurance 
plgm established under subsection (a) under an enrollment of a 
member or a surviving spouse who dies during the period of enroll-
ment shall continue until the end of that period and may be renewed 
by (or for) the dependent, so long as the premium paid is sufficient 
to cover continuation of the dependent's enrollment. The Secretary 
may terminate coverage of the dependent when the premiums paid 
are no longer sufficient to cover continuation of the enrollment. 
The Secretsiry shall prescribe in regulations under subsection (h) 
the parties responsible for paying the remaining premiums due 
on the enrollment and the manner for collection of the premiums. 
"(h) REGULATIONS.—^The dental insurance plan established 
under subsection (a) shall be administered under regulations pre-
scribed by the Secretary of Defense, in consultation with the Sec-
retary of Transportation. 
"(i) DEFINITIONS.—In this section: 
"(1) The term 'eligible dependent' means a dependent 
described in subparagraph (A), (D), or (I) of section 1072(2) 
of this title. 
"(2) The term 'eligible child dependent' means a dependent 
described in subparagraph (D) or (I) of section 1072(2) of this 
title. 
"(3) The term 'retired pay' includes retainer pay.". 
110 STAT. 2590 
PUBLIC LAW 104-201—SEPT. 23, 1996 
10 u s e 1076c 
note. 
Regulations. 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 1076b 
the following new item: 
"10760. Dental insurance plan: certain retirees and their surviving spouses and 
other dependents.". 
(b) IMPLEMENTATION.—Beginning not later than October 1, 
1997, the Secretary of Defense shall— 
(1) offer members of the Armed Forces and other persons 
described in subsection (b) of section 1076c of title 10, United 
States Code (as added by subsection (a)(1) of this section), 
the opportunity to enroll in the dental insurance plan required 
under that section; and 
(2) begin to provide benefits under the plan. 
SEC. 704. PLAN FOR HEALTH CARE COVERAGE FOR CHnj)REN WITH 
MEDICAL CONDITIONS CAUSED BY PARENTAL EXPOSURE 
TO CHEMICAL MUNITIONS WHILE SERVING AS MEMBERS 
OF THE ARMED FORCES. 
(a) PLAN REQUIRED.—^The Secretary of Defense, in coordination 
with the Secretary of Veterans Affairs, shall develop a plan for 
ensuring the provision of medical care to any natural child of 
a member of the Armed Forces (including former members and 
members discharged or otherwise separated from active duty) who 
has a congenital defect or catastrophic illness, proven to a reason-
able degree of scientific certainty on the basis of scientific research 
to have resulted from exposure of the member to a chemical warfare 
agent or other hazardous material to which the member was 
exposed during active military service. 
(b) SUBMISSION TO CONGRESS.—^Not later than 180 days after 
the date of the enactment of this Act, the Secretary of Defense 
shall submit the plan developed under subsection (a) to Congress. 
(c) DEFINITIONS OF CONGENITAL DEFECT AND CATASTROPHIC 
ILLNESS.—^The Secretary of Defense shall prescribe in regulations 
a definition of the terms "congenital defect" and "catastrophic ill-
ness" for the purposes of this section. 
Subtitle B—TRICARE Program 
SEC. 711. CHAMPUS 
PAYMENT 
LIMITS 
FOR 
TRICARE 
PRIME 
ENROLLEES. 
Section 1079(h)(4) of title 10, United States Code, is amended 
in the second sentence by striking out "emergency". 
SEC. 712. IMPROVED INFORMATION EXCHANGE BETWEEN MILITARY 
TREATMENT 
FACILITIES 
AND 
TRICARE 
PROGRAM 
CONTRACTORS. 
(a) UNIFORM INTERFACES.—^The Secretary of Defense shall 
ensure that the automated medical information system being devel-
oped by the Department of Defense (known as the Composite Health 
Care System) provides for uniform interfaces between information 
systems of military treatment facilities and private contractors 
under managed care programs of the TRICARE program. The uni-
form interface shall provide for a full electronic two-way exchange 
of health care information between the military treatment facilities 
and contractor information systems, including enrollment informa-
tion, information regarding eligibility determinations, provider net-
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2591 
work information, 
appointment 
information, 
and 
information 
regarding the existence of third-party payers. 
(b) AMENDMENT OF EXISTING CONTRACTS.—TO assure a single 
consistent source of information throughout the health care delivery 
system of the uniformed services, the Secretary of Defense shall 
amend each TRICARE program contract, with the consent of the 
TRICARE program contractor and notwithstanding any require-
ment for competition, to require the contractor— 
(1) to use software furnished under the Composite Health 
Care System to record military treatment facility provider 
appointments; and 
(2) to record TRICARE program enrollment through direct 
use of the Composite Health Care System software or through 
the uniform two-way interface between the contractor and mili-
tary treatment facilities systems, where applicable. 
(c) DEFINITION OF TRICARE PROGRAM.—^For purposes of this 
section, the term 'TRICARE program" means the managed health 
care program that is established by the Secretary of Defense under 
the authority of chapter 55 of title 10, United States Code, prin-
cipally section 1097 of such title, and includes the competitive 
selection of contractors to financially underwrite the delivery of 
health care services under the Civilian Health and Medical Program 
of the Uniformed Services. 
SEC. 713. PLANS FOR MEDICARE SUBVENTION DEMONSTRATION Reports. 
PROGRAMS. 
(a) PROGRAM FOR ENROLLMENT IN TRICARE MANAGED CARE 
OPTION.—^Not later than September 6, 1996, the Secretary of 
Defense and the Secretary of Health and Human Services shall 
jointly submit to Congress and the President a report containing 
a specific plan (including the recommendations of the Secretaries 
required under subsection (b)) regarding the establishment of a 
demonstration program under which— 
(1) covered beneficiaries under chapter 55 of title 10, United 
States Code, who are also entitled to benefits under part A 
of the medicare program are permitted to enroll in the managed 
care option of the TRICARE program; smd 
(2) the Secretary of Health and Human Services reimburses 
the Secretary of Defense from the Medicare program on a 
capitated basis for the costs of providing health care services 
to military retirees who enroll. 
(b) SPECIFIC ELEMENTS OF REPORT.—^The report shall include 
the following: 
(1) The number of covered beneficiaries described in sub-
section (a) who are projected to participate in the demonstration 
program and the minimum number of such psirticipants nec-
essary to conduct the demonstration program effectively. 
(2) A plan for notifying such covered beneficiaries of their 
eligibility for enrollment in the demonstration program and 
for any other matters connected with enrollment. 
(3) A recommendation for the duration of the demonstration 
progreim. 
(4) A recommendation for the geographic regions in which 
the demonstration program should be conducted. 
(5) The appropriate level of capitated reimbursement, and 
a schedule for such reimbursement, from the Medicare program 
110 STAT. 2592 
PUBLIC LAW 104-201—SEPT. 23, 1996 
to the Department of Defense for hesdth care services provided 
enroUees in the demonstration program. 
(6) An estimate of the amounts that, in the absence of 
the demonstration program, would be required to be allocated 
by the Department of Defense for the provision of health care 
services to covered beneficiaries described in subsection (a) 
who reside in the regions in which the demonstration program 
is proposed to be conducted. 
(7) An assessment of revisions to the allocation estimated 
under paragraph (6) that would result from the conduct of 
the demonstration program in such regions. 
(8) An estimate of the cost to the Department of Defense 
and to the Medicare program of providing health care services 
to covered beneficiaries described in subsection (a) who enroll 
in the demonstration program. 
(9) An assessment of the likelihood of cost shifting among 
the Department of Defense and the Medicare program under 
the demonstration program. 
(10) A proposal for mechanisms for reconciling and 
reimbursing any improper pa3nnents among the Department 
of Defense and the Medicare program under the demonstration 
program. 
(11) A methodology for evaluating the demonstration pro-
gram, including cost analyses. 
(12) As assessment of the extent to which the TRICARE 
program is prepared to meet requirements of the Medicare 
program for purposes of the demonstration program and the 
provisions of law or regulation that would have to be waived 
in order to facilitate the carrying out of the demonstration 
program. 
(13) An assessment of the impact of the demonstration 
program on military readiness. 
(14) Contingency plans for the provision of health care 
services under the demonstration program in the event of the 
mobilization of health care personnel. 
(15) A recommendation of the reports that the Department 
of Defense and the Department of Health and Human Services 
should submit to Congress describing the conduct of the dem-
onstration program. 
(c) PROGRAM FOR ENROLLMENT IN TRICARE FEE-FOR-SERVICE 
OPTION.—^Not later than January 3, 1997, the Secretary of Defense 
and the Secretary of Health and Human Services shall jointly 
submit to Congress and the President a report on the feasibility 
and advisability of expanding the demonstration program referred 
to in subsection (a) so as to provide the Department of Defense 
with reimbursement from the Medicare program on a fee-for-service 
basis for health care services provided covered 
beneficiaries 
described in subsection (a) who enroll in the demonstration program. 
The report shall include a proposal for the expansion of the program 
if the expansion is determined to be advisable. 
10 use 1073 
note. 
Subtitle C—^Uniformed Services Treatment 
Facilities 
SEC. 721. DEFINITIONS. 
In this subtitle: 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2593 
(1) The term "administering Secretaries" means the Sec-
retary of Defense, the Secretary of Transportation, and the 
Secretary of Health and Human Services. 
(2) The term "agreement" means the agreement required 
under section 722(b) between the Secretary of Defense and 
a designated provider. 
(3) The term "capitation payment" means an actuarially 
sound payment for a defined set of health care services that 
is established on a per enroUee per month basis. 
(4) The term "covered beneficiary" means a beneficiary 
under chapter 55 of title 10, United States Code, other than 
a beneficiary under section 1074(a) of such title. 
(5) The term "designated provider" means a public or non-
profit private entity that was a transferee of a Public Health 
Service hospital or other station under section 987 of the Omni-
bus Budget Reconciliation Act of 1981 (Public Law 97-35; 42 
U.S.C. 248b) and that, before the date of the enactment of 
this Act, was deemed to be a facility of the uniformed services 
for the purposes of chapter 55 of title 10, United States Code. 
The term includes any legal successor in interest of the trans-
feree. 
(6) The term "enroUee" means a covered beneficiary who 
enrolls with a designated provider. 
(7) The term "health care services" means the health care 
services provided under the health plan known as the 
"TRICARE PRIME" option under the TRICARE program. 
(8) The term "Secretary" means the Secretary of Defense. 
(9) The term "TRICARE program" means the managed 
health care program that is established by the Secretary of 
Defense under the authority of chapter 55 of title 10, United 
States Code, principally section 1097 of such title, and includes 
the competitive selection of contractors to financially underwrite 
the delivery of health care services under the Civilian Health 
and Medical Program of the Uniformed Services. 
SEC. 722. INCLUSION OF DESIGNATED PROVIDERS IN UNIFORMED 
SERVICES HEALTH CARE DELIVERY SYSTEM. 
(a) INCLUSION IN SYSTEM.—^The health care delivery system 
of the uniformed services shall include the designated providers. 
(b) 
AGREEMENTS 
TO 
PROVIDE 
MANAGED 
HEALTH 
CARE 
SERVICES.—(1) After consultation with the other administering Sec-
retaries, the Secretary of Defense shall negotiate and enter into 
an agreement with each designated provider under which the des-
ignated provider will provide health care services in or through 
managed care plans to covered beneficiaries who enroll with the 
designated provider. 
(2) The agreement shall be entered into on a sole source basis. 
The Federal Acquisition Regulation, except for those requirements 
regarding competition, issued pursuant to section 25(c) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 421(c)) shall apply 
to the agreements as acquisitions of commercial items. 
(3) The implementation of an agreement is subject to availabil-
ity of funds for such purpose. 
(c) EFFECTIVE DATE OF AGREEMENTS.—(1) Unless an earlier 
effective date is agreed upon by the Secretary and the designated 
provider, the agreement shall take effect upon the later of the 
following: 
110 STAT. 2594 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(A) The date on which a managed care support contract 
under the TRICARE program is implemented in the service 
area of the designated provider. 
(B) October 1, 1997. 
(2) Notwithstanding paragraph (1)^ the designated provider 
whose service area includes Seattle, Washington, shall implement 
its agreement as soon as the agreement permits. 
(d) 
TEMPORARY CONTINUATION OF EXISTING PARTICIPATION 
AGREEMENTS.—^The Secretary shall extend the participation agree-
ment of a designated provider in effect immediately before the 
date of the enactment of this Act under section 718(c) of the 
National Defense Authorization Act for Fiscal Year 1991 (Public 
Law 101-510; 42 U.S.C. 248c) until the agreement required by 
this section takes effect under subseqtion (c). 
(e) SERVICE AREA.—^The Secretary may not reduce the size 
of the service area of a designated provider below the size of 
the service area in effect as of September 30, 1996. 
(f) 
COMPLIANCE WITH ADMINISTRATIVE 
REQUIREMENTS.—(1) 
Unless otherwise agreed upon by the Secretary and a designated 
provider, the designated provider shall comply with necessary and 
appropriate administrative requirements established by the Sec-
retary for other providers of health care services and requirements 
established by the Secretary of Health and Human Services for 
risk-sharing contractors under section 1876 of the Social Security 
Act (42 U.S.C. 1395mm). The Secretary and the designated provider 
shall determine and apply only such administrative requirements 
as are minimally necessary and appropriate. A designated provider 
shall not be required to comply with a law or regulation of a 
State government requiring licensure as a health insurer or health 
maintenance organization. 
(2) A designated provider may not contract out more than 
five percent of its primary care enrollment without the approval 
of the Secretary, except in the case of primary care contracts 
between a designated provider and a primary care contractor in 
force on the date of the enactment of this Act. 
SEC. 723. PROVISION 
OF 
UNIFORM 
BENEFIT 
BY 
DESIGNATED 
PROVIDERS. 
(a) UNIFORM BENEFIT REQUIRED.—A designated provider shall 
offer to enrollees the health benefit option prescribed and imple-
mented by the Secretary under section 731 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 
U.S.C. 1073 note), including accompanying cost-sharing require-
ments. 
(b) TIME FOR IMPLEMENTATION OF BENEFIT.—^A designated pro-
vider shall offer the he£ilth benefit option described in subsection 
(a) to enrollees upon the later of the following: 
(1) The date on which health care services within the 
health care delivery system of the uniformed services are ren-
dered through the TRICARE program in the region in which 
the designated provider operates. 
(2) October 1, 1997. 
(c) ADJUSTMENTS.—^The Secretary may establish a later date 
under subsection (b)(2) or prescribe reduced cost-sharing require-
ments for enrollees. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2595 
SEC. 724. ENROLLMENT OF COVERED BENEFICIARIES. 
(a) FISCAL YEAR 1997 LIMITATION.—(1) During fiscal year 1997, 
the number of covered beneficiaries who are enrolled in managed 
care plans offered by designated providers may not exceed the 
number of such enroUees as of October 1, 1995. 
(2) The Secretary may waive the limitation under paragraph 
(1) if the Secretary determines that additional enrollment authority 
for a designated provider is required to accommodate covered bene-
ficiaries who are dependents of members of the uniformed services 
entitled to health care under section 1074(a) of title 10, United 
States Code. 
(b) PERMANENT LIMITATION.—^For each fiscal year beginning 
Eifter September 30, 1997, the number of enrollees in managed 
care plans offered by designated providers may not exceed 110 
percent of the number of such enrollees as of the first day of 
the immediately preceding fiscal year. The Secretary may waive 
this limitation as provided in subsection (a)(2). 
(c) RETENTION OF CURRENT ENROLLEES.—^An enroUee in the 
managed care plan of a designated provider as of September 30, 
1997, or such earlier date as the designated provider and the 
Secretary may agree upon, shall continue receiving services from 
the designated provider pursuant to the agreement entered into 
under section 722 unless the enrollee disenrolls from the designated 
provider. Except as provided in subsection (e), the administering 
Secretaries may not disenroll such an enrollee unless the 
disenroUment is agreed to by the Secretary and the designated 
provider. 
(d) ADDITIONAL ENROLLMENT AUTHORITY.—Other covered bene-
ficiaries may also receive health care services from a designated 
provider, except that the designated provider may market such 
services to, and enroll, only those covered beneficiaries who— 
(1) do not have other primary health insurance coverage 
(other than Medicare coverage) covering basic primary care 
and inpatient and outpatient services; or 
(2) are enrolled in the direct care system under the 
TRICARE program, regardless of whether the covered bene-
ficiaries were users of the hesilth care delivery system of the 
uniformed services in prior years. 
(e) SPECIAL RULE FOR MEDICARE-ELIGIBLE BENEFICIARIES.— 
If a covered beneficiary who desires to enroll in the managed 
care program of a designated provider is also entitled to hospital 
insurance benefits under part A of title XVIII of the Social Security 
Act (42 U.S.C. 1395c et seq.), the covered beneficiary shall elect 
whether to receive health care services as an enrollee or under 
part A of title XVIII of the Social Security Act. The Secretary 
may disenroll an enrollee who subsequently violates the election 
made under this subsection and receives benefits under part A 
of title XVIII of the Social Security Act. 
(f) 
INFORMATION 
REGARDING 
ELIGIBLE 
COVERED 
BENE-
FICIARIES.—^The Secretary shall provide, in a timely manner, a 
designated provider with an accurate list of covered beneficiaries 
within the marketing area of the designated provider to whom 
the designated provider may offer enrollment. 
SEC. 725. APPLICATION OF CHAMPUS PAYMENT RULES. 
(a) APPLICATION OF PAYMENT RULES.—Subject to subsection 
(b), the Secretary shall require a private facility or health care 
2&-194 O - 96 - 28 : QL 3 Part 3 
110 STAT. 2596 
PUBLIC LAW 104-201—SEPT. 23, 1996 
provider that is a health care provider under the Civilian Health 
and Medical Program of the Uniformed Services to apply the pay-
ment rules described in section 1074(c) of title 10, United States 
Code, in imposing charges for health care that the private facility 
or provider provides to enrollees of a designated provider. 
(b) AUTHORIZED ADJUSTMENTS.—^The pa3rment rules imposed 
under subsection (a) shall be subject to such modifications as the 
Secretary considers appropriate. The Secretary may authorize a 
lower rate than the maximum rate that would otherwise apply 
under subsection (a) if the lower rate is agreed to by the designated 
provider and the private facility or health care provider. 
(c) REGULATIONS.—^The Secretary shall prescribe regulations 
to implement this section after consultation with the other admin-
istering Secretaries. 
(d) CONFORMING AMENDMENT.—Section 1074 of title 10, United 
States Code, is amended by striking out subsection (d). 
SEC. 726. PAYMENTS FOR SERVICES. 
(a) FORM OF PAYMENT.—Unless otherwise agreed to by the 
Secretary and a designated provider, the form of payment for health 
care services provided by a designated provider shall be on a full 
risk capitation payment basis. The capitation payments shall be 
negotiated and agreed upon by the Secretary and the designated 
provider. In addition to such other factors as the parties may 
agree to apply, the capitation payments shall be based on the 
utilization experience of enrollees and competitive market rates 
for equivalent health care services for a comparable population 
to such enrollees in the area in which the designated provider 
is located. 
(b) LIMITATION ON TOTAL PAYMENTS.—^Total capitation pay-
ments for health care services to a designated provider shall not 
exceed an amount equal to the cost that would have been incurred 
by the Government if the enrollees had received such health care 
services through a military treatment facility, the TRICARE pro-
gram, or the Medicare program, as the case may be. 
(c) ESTABLISHMENT OF PAYMENT RATES ON ANNUAL BASIS.— 
The Secretary and a designated provider shall establish capitation 
payments on an annual basis, subject to periodic review for actuarial 
soundness and to adjustment for any adverse or favorable selection 
reasonably anticipated to result from the design of the program 
under this subtitle. 
(d) ALTERNATIVE 
BASIS FOR CALCULATING PAYMENTS.^After 
September 30, 1999, the Secretary and a designated provider may 
mutually agree upon a new basis for calculating capitation pay-
ments. 
SEC. 
727. 
REPEAL 
OF 
SUPERSEDED 
AUTHORITIES. 
(a) REPEALS.—^The following provisions of law are repealed: 
(1) Section 911 of the Military Construction Authorization 
Act, 1982 (42 U.S.C. 248c). 
(2) Section 1252 of the Department of Defense Authoriza-
tion Act, 1984 (42 U.S.C. 248d). 
(3) Section 718(c) of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 42 U.S.C. 248c 
note). 
(4) Section 726 of the National Defense Authorization Act 
for Fiscal Year 1996 (Pubhc Law 104-106; 42 U.S.C. 248c 
note). 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2597 
(b) EFFECTIVE DATE.—^The amendments made by paragraphs 
(1), (2), and (3) of subsection (a) shall take effect on October 1, 
1997. 
Subtitle D—Other Changes to Existing 
Laws Regarding Health Care Management 
SEC. 731. AUTHOMTY TO WAIVE CHAMPUS EXCLUSION REGARDING 
NONMEDICALLY NECESSARY TREATMENT IN CONNECTION 
WITH CERTAIN CLINICAL TRIALS. 
(a) WAIVER AUTHORITY.—^Paragraph (13) of section 1079(a) of 
title 10, United States Code, is amended— 
(1) by striking out "any service" Eind inserting in lieu 
thereof "Aiiy service"; 
(2) by striking out the semicolon at the end and inserting 
in lieu thereof a period; and 
(3) by adding at the end the following: "Pursuant to an 
agreement with the Secretary of Health and Human Services 
and under such regulations as the Secretary of Defense may 
prescribe, the Secretary of Defense may waive the operation 
of this paragraph in connection with clinical trials sponsored 
or approved by the National Institutes of Health if the Secretary 
of Defense determines that such a waiver will promote access 
by covered beneficiaries to promising new treatments and 
contribute to the development of such treatments.". 
(b) CLERICAL AMENDMENTS.—Such section is further amended— 
(1) in the matter preceding paragraph (1), by striking out 
"except that—" and inserting in lieu thereof "except as follows:"; 
(2) by capitalizing the first letter of the first word of each 
of paragraphs (1) through (17); 
(3) by striking out the semicolon at the end of each of 
paragraphs (1) through (12) and paragraphs (14) £ind (15) and 
inserting in lieu thereof a period; and 
(4) in paragraph (16), by striking out "; and" and inserting 
in lieu thereof a period. 
SEC. 732. EXCEPTION 
TO MAXIMUM ALLOWABLE 
PAYMENTS TO 
INDIVIDUAL HEALTH-CARE PROVIDERS UNDER CHAMPUS. 
Section 1079(h) of title 10, United States Code, is amended— 
(1) by redesignating paragraph (5) as paragraph (6); and 
(2) by inserting after paragraph (4) the following new para-
graph: 
"(5) In addition to the authority provided under paragraph 
(4), the Secretary may authorize the commander of a facility of 
the uniformed services, the lead agent (if other than the com-
mander), and the health care contractor to modify the payment 
limitations under paragraph (1) for certain health care providers 
when necessary to ensure both the availability of certain services 
for covered beneficiaries and lower costs than would otherwise 
be incurred to provide the services.". 
SEC. 733. CODIFICATION 
OF ANNUAL 
AUTHORITY 
TO 
CREDIT 
CHAMPUS REFUNDS TO CURRENT YEAR APPROPRIATION. 
(a) CREDITS TO CHAMPUS ACCOUNTS.—(1) Chapter 55 of title 
10, United States Code, is amended by inserting after section 1079 
the following new section: 
110 STAT. 2598 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"§ 1079a. CHAMPUS: 
treatment 
of 
refunds 
and 
other 
amounts collected 
"All refunds and other amounts collected in the administration 
of the Civilian Health and Medical Program of the Uniformed 
Services shall be credited to the appropriation available for that 
program for the fiscal year in which the refund or amount is 
collected.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 1079 
the following new item: 
"1079a. CHAMPUS: treatment of refunds and other amounts collected.". 
(b) CONFORMING REPEAL.—Section 8094 of the Department of 
Defense Appropriations Act, 1996 (Public Law 104-61; 109 Stat. 
671), is repegJed. 
SEC. 734. EXCEPTIONS TO REQUIREMENTS REGARDING OBTAINING 
NONAVAILABILITY-OF.HEALTH-CARE STATEMENTS. 
(a) REFERENCE TO INPATIENT MEDICAL CARE.—(1) Section 
1080(a) of title 10, United States Code, is amended by inserting 
"inpatient" before "medical care" in the first sentence. 
(2) Section 1086(e) of such title is amended in the first sentence 
by striking out "benefits" and inserting in lieu thereof "inpatient 
medical care". 
(b) WAIVERS AND EXCEPTIONS TO REQUIREMENTS.—(1) Section 
1080 of such title is amended by adding at the end the following 
new subsection: 
"(c) WAIVERS AND EXCEPTIONS TO REQUIREMENTS.—(1) A cov-
ered beneficiary enrolled in a managed care plan offered pursuant 
to any contract or agreement under this chapter for the provision 
of health care services shall not be required to obtain a nonavailabil-
ity-of-health-care statement as a condition for the receipt of health 
care. 
"(2) The Secretary of Defense may waive the requirement to 
obtain 
nonavailability-of-health-care 
statements 
following 
an 
evaluation of the effectiveness of such statements in optimizing 
the use of facilities of the uniformed services.". 
(2) Section 1086(e) of such title is amended in the last sentence 
by striking out "section 1080(b)" and inserting in lieu thereof "sub-
sections (b) and (c) of section 1080". 
(c) CONFORMING AMENDMENTS.—Section 1080(b) of such title 
is amended— 
(1) by striking out "NONAVAILABILITY OF HEALTH CARE 
STATEMENTS" and inserting in lieu thereof "NONAVAILABILITY-
OF-HEALTH-CARE STATEMENTS"; and 
(2) by striking out "nonavailability of health care state-
ment" and inserting in lieu thereof "nonavailability-of-health-
care statement". 
SEC. 735. ENHANCEMENT 
OF 
THIRD-PARTY 
COLLECTION 
AND 
SECONDARY PAYER AUTHORITIES UNDER CHAMPUS. 
(a) RETENTION AND USE BY TREATMENT FACILITIES OF AMOUNTS 
COLLECTED.—Subsection (g)(1) of section 1095 of title 10, United 
States Code, is amended by inserting "or through" after "provided 
at". 
(b) EXPANSION OF DEFINITION OF THIRD-PARTY PAYER.—Sub-
section (h) of such section is amended— 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2599 
(1) in the first sentence of paragraph (1), by inserting 
"and a workers' compensation program or plan" before the 
period; and 
(2) in paragraph (2)— 
(A) by striking out "organization and" and inserting 
in Ueu thereof a "organization,"; and 
(B) by inserting before the period at the end the follow-
ing: ", and a personal injury protection plan or medical 
payments benefit plan for personal injuries resulting from 
the operation of a motor vehicle". 
(c) APPLICABILITY OF SECONDARY PAYER REQUIREMENT.—Sec-
tion 1079(j)(l) of such title is amended by inserting after "or health 
plan" the following: ", including any plan offered by a third-party 
payer (as defined in section 1095(h)(1) of this title),". 
Subtitle E—Other Matters 
SEC. 741. ALTERNATIVES TO ACTIVE DUTY SERVICE OBLIGATION 
UNDER ARMED FORCES HEALTH PROFESSIONS SCHOLAR-
SHIP AND FINANCIAL ASSISTANCE PROGRAM AND 
UNIFORMED SERVICES UNIVERSITY OF THE HEALTH 
SCIENCES. 
(a) ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP AND 
FINANCIAL ASSISTANCE PROGRAM.—Subsection (e) of section 2123 
of title 10, United States Code, is amended to read as follows: 
"(e)(1) A member of the program who is relieved of the member's 
active duty obligation under this subchapter before the completion 
of that active duty obligation may be given, with or without the 
consent of the member, any of the following alternative obligations, 
as determined by the Secretary of the military department con-
cerned: 
"(A) A service obligation in another armed force for a 
period of time not less than the member's remaining active 
duty service obligation. 
"(B) A service obligation in a component of the Selected 
Reserve for a period not less than twice as long as the member's 
remaining active duty service obligation. 
"(C) Repayment to the Secretary of Defense of a percentage 
of the total cost incurred by the Secretary under this subchapter 
on behalf of the member equal to the percentage of the mem-
ber's total active duty service obligation being relieved, plus 
interest. 
"(2) In addition to the alternative obligations specified in para-
graph (1), if the member is relieved of an active duty obligation 
by reason of the separation of the member because of a physical 
disability, the Secretary of the military department concerned may 
give the member a service obligation as a civilian employee 
employed as a health care professional in a facility of the uniformed 
services for a period of time equal to the member's remaining 
active duty service obligation. 
"(3) The Secretary of Defense shall prescribe regulations Regulations, 
describing the manner in which an alternative obligation may be 
given under this subsection.". 
(b) 
UNIFORMED 
SERVICES 
UNIVERSITY 
OF THE 
HEALTH 
SCIENCES.—Section 2114 of title 10, United States Code is amended 
by adding at the end the following new subsection: 
110 STAT. 2600 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(h) A graduate of the University who is relieved of the gradf-
uate's active-duty service obligation under subsection (b) bef<ire 
the completion of that active-duty service obligation may be given, 
with or without the consent of the graduate, an alternative obliga-
tion in the same manner as provided in subpgiragraphs (A) and 
(B) of paragraph (1) of section 2123(e)(1) of this title or paragraph 
(2) of such section for members of the Armed Forces Health Profes-
sions Scholarship and Financial Assistance program.". 
10 use 2114 
(c) APPLICATION OF AMENDMENTS.—^The amendments made by 
note. 
this section shall apply with respect to individuals who first become 
members of the Araied Forces Health Professions Scholarship and 
Financial Assistance program or students of the Uniformed Services 
University of the Health Sciences on or after October 1, 1996. 
10 use 2123 
(d) TRANSITION PROVISION.—(1) In the case of any member 
note. 
of the Armed Forces Health Professions Scholarship and Financial 
Assistance program who, as of October 1, 1996, is serving an active 
duty obligation under the program or is incurring an active duty 
obligation as a participant in the program, and who is subsequently 
relieved of the active duty obligation before the completion of the 
obligation, the alternative obligations authorized by the amendment 
made by subsection (a) may be used by the Secretary of the military 
department concerned with the agreement of the member. 
10 use 2114 
(2) In the case of any person who, as of October 1, 1996, 
note. 
is serving an active-duty service obligation as a graduate of the 
Uniformed Services University of the Health Sciences or is incurring 
an active-duty service obligation as a student of the University, 
and who is subsequently relieved of the active-duty service obliga-
tion before the completion of the obligation, the alternative obliga-
tions authorized by the amendment made by subsection (b) may 
be implemented by the Secretary of Defense with the agreement 
of the person. 
(e) REPORT ON UTILIZATION OF GRADUATES OF UNIVERSITY.— 
Not later than 120 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report 
on the utilization by the Department of Defense of graduates of 
the Uniformed Services University of the Health Sciences. The 
report shall include a discussion of means of ensuring that grad-
uates of the University have received training in medical specialties 
for which the Department has particular need. 
10 use 1071 
SEC. 742. EXTERNAL PEER REVIEW FOR DEFENSE HEALTH PROGRAM 
note. 
EXTRAMURAL MEDICAL RESEARCH INVOLVING HUMAN 
SUBJECTS. 
(a) ESTABLISHMENT OF EXTERNAL PEER REVIEW PROCESS.— 
The Secretary of Defense shall establish a peer review process 
that will use persons who are not officers or employees of the 
Grovemment to review the research protocols of medical research 
projects. 
(b) PEER REVIEW REQUIREMENTS.—^Funds of the Department 
of Defense may not be obligated or expended for any medical 
research project unless the research protocol for the project has 
been approved by the external peer review process established 
under subsection (a). 
(c) MEDICAL RESEARCH PROJECT DEFINED.—^For purposes of 
this section, the term "medical research project" means a research 
project that— 
(1) involves the participation of human subjects; 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2601 
(2) is conducted solely by a non-Federal entity; and 
(3) is funded through the Defense Health Program account. 
(d) EFFECTIVE DATE.—^The peer review requirements of sub- Applicability. 
section (b) shall take effect on October 1, 1996, and, except as 
provided in subsection (e), shall apply to all medical research 
projects proposed funded on or after that date, including medical 
research projects funded pursuant to any requirement of law 
enacted before, on, or after that date. 
(e) EXCEPTIONS.—Only the following medical research projects 
shsdl be exempt from the peer review requirements of sub-
section (b): 
(1) A medical research project that the Secretary deter-
mines has been substantially completed by October 1, 1996. 
(2) A medical research project funded pursuant to any 
provision of law enacted on or after that date if the provision 
of law specifically refers to this section and specifically states 
that the peer review requirements do not apply. 
SEC. 743. INDEPENDENT 
RESEARCH 
REGARDING 
GULF 
WAR 
10 USC1074 
SYNDROME. 
note. 
(a) DEFINITIONS.—^For purposes of this section: 
(1) The term "Gulf War service" means service on active 
duty as a member of the Armed Forces in the Southwest 
Asia theater of operations during the Persian Gulf War. 
(2) The term "Gulf War syndrome" means the complex 
of illnesses and symptoms commonly known as Gulf War s3nQ-
drome. 
(3) The term "Persian Gulf War" has the meaning given 
that term in section 101(33) of title 38, United States Code. 
(b) RESEARCH.—^The Secretary of Defense shall provide, by con-
tract, grant, or other transaction, for scientific research to be carried 
out by entities independent of the Federal Government on possible 
causal relationships between Gulf War syndrome and— 
(1) the possible exposures of members of the Armed Forces 
to chemical warfare agents or other hazardous materials during 
Gulf War service; and 
(2) the use by the Department of Defense during the Per-
sian Gulf War of combinations of various inoculations and 
investigational new drugs. 
(c) PROCEDURES FOR AWARDING GRANTS.—The Secretary shall 
prescribe the procedures to be used to make research awards under 
subsection (b). The procedures shall— 
(1) include a comprehensive, independent peer-review 
process for the evaluation of proposals for scientific research 
that are submitted to the Department of Defense; and 
(2) provide for the final selection of proposals for award 
to be based on the scientific merit and program relevance 
of the proposed research. 
(d) AVAILABILITY OF FUNDS.—Of the amount authorized to be 
appropriated under section 301(21) for defense medical programs, 
$10,000,000 is available for research under subsection (b). 
SEC. 744. COMPTROLLER GENERAL REVIEW OF HEALTH CARE ACTIVI-
TIES OF DEPARTMENT OF DEFENSE RELATING TO GULF 
WAR ILLNESSES. 
(a) MEDICAL RESEARCH AND CLINICAL CARE PROGRAMS.—^The 
Comptroller General shall analyze the effectiveness of the medical 
research programs and clinical care programs of the Department 
110 STAT. 2602 
PUBLIC LAW 104-201—SEPT. 23, 1996 
of Defense that relate to illnesses that might have been contracted 
by members of the Armed Forces as a result of service in the 
Southwest Asia theater of operations during the Persian Gulf War. 
(b) POLICIES REGARDING INVESTIGATIONAL NEW DRUGS.—^The 
Comptroller General shall Einalyze the scope and effectiveness of 
the policies of the Department of Defense with respect to— 
(1) the use of investigational new drugs during the Persian 
Gulf War to treat members of the Armed Forces who served 
in the Southwest Asia theater of operations; and 
(2) the current use of investigational new drugs to treat 
illnesses referred to in subsection (a). 
(c) ADMINISTRATION OF MEDICAL RECORDS.—The Comptroller 
General shall analyze the administration of medical records by 
the military departments in order to assess the extent to which 
such records accurately reflect the pre-deplo3mtient medical assess-
ments, immunization records, informed consent releases, complaints 
during routine sick call, emergency room visits, visits with unit 
medics during deplojnnent, and other relevant medical information 
relating to the members and former members referred to in 
subsection (a) with respect to the illnesses referred to in that 
subsection. 
(d) REPORTS.—Not later than March 1, 1997, the Comptroller 
General shall submit to Congress a separate report on each of 
the analyses required under subsections (a), (b), and (c). 
SEC. 745. REPORT REGARDING SPECIALIZED TREATMENT FACILITY 
PROGRAM. 
Not later than April 1, 1997, the Secretary of Defense shall 
submit to Congress a report evaluating the impact on the military 
health care system of limiting the service area of a facility des-
ignated as part of the specialized treatment facility program under 
section 1105 of title 10, United States Code, to not more than 
100 miles from the facility. 
SEC. 746. TUDY OF MEANS OF ENSURING UNIFORMITY IN PROVISION 
OF MEDICAL AND DENTAL CARE FOR MEMBERS OF 
RESERVE COMPONENTS. 
(a) STUDY.—(1) In consultation with the Secretary of Transpor-
tation, the Secretary of Defense shall conduct a study of means 
of improving the provision of medical and dental care to members 
of the reserve components referred to in paragraph (2) in order 
to ensure uniformity and consistency in the provision of such care 
to such members. 
(2) The members of the reserve components referred to in 
paragraph (1) are the following: 
(A) Members on active duty, including active duty for train-
ing and annual training duty. 
(B) Members on full-time National Guard duty. 
(C) Members on inactive-duty training, regardless of 
whether such members are in a pay or nonpay status. 
(b) REPORT,—Not later than 180 days after the date of the 
enactment of this Act, the Secretsiry of Defense shall submit to 
Congress a report on the study conducted under subsection (a). 
The report shall include such recommendations (including rec-
ommendations for legislation) as the Secretary considers appro-
priate. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2603 
SEC. 747. SENSE OF CONGRESS REGARDING TAX TREATMENT OF 
ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP 
AND FINANCIAL ASSISTANCE PROGRAM. 
It is the sense of Congress that the Secretary of Defense should 
work with the Secretary of the Treasury to interpret section 117 
of the Internal Revenue Code of 1986 so that the limitation on 
the amount of a qualified scholarship or qualified tuition reduction 
excluded from gross income does not apply to any portion of a 
scholarship or financial assistance provided by the Secretary of 
Defense to a person enrolled in the Armed Forces Health Professions 
Scholarship and Financial Assistance program under subchapter 
I of chapter 105 of title 10, United States Code. 
TITLE 
VIII—ACQUISITION 
POLICY, 
ACQUISITION 
MANAGEMENT, 
AND 
RELATED MATTERS 
\ 
Subtitle A—Acquisition Management 
Sec. 801. Procurement technical assistance programs. 
Sec. 802. Extension of pilot mentor-protege progreim. 
Sec. 803. Authority to waive certain requirements for defense acquisition pilot pro-
grams. 
Sec. 804. Modification of authority to carry out certain prototype projects. 
Sec. 805. Increase in threshold amounts for major systems. 
Sec. 806. Revisions in information required to be included in selected acquisition 
reports. 
Sec. 807. Increase in simplified acqmsition threshold for humanitarian or peace-
keeping operations. 
Sec. 808. Expansion of audit reciprocity among Federal agencies to include post-
award audits. 
Sec. 809. Excessive compensation of certain contractor personnel. 
Sec. 810. Exception to prohibition on procvirement of foreign goods. 
Subtitle B—Other Matters 
Sec. 821. Prohibition on release of contractor proposals under Freedom of Informa-
tion Act. 
Sec. 822. Amendments relating to reports on procurement regulatory activity. 
Sec. 823. Amendment of multiyear limitation on contracts for inspection, mainte-
nance, and repair. 
Sec. 824. Streamlined notice requirements to contractors and employees regarding 
termination or substantial reduction in contracts under major defense 
programs. 
Sec. 825. Repeal of notice requirements for substantially or seriously affected par-
ties in downsizing efforts. 
Sec. 826. Study of effectiveness of defense mergers. 
Sec. 827. Annual report relating to Buy American Act. 
Sec. 828. Foreign environmental technology. 
Sec. 829. Assessment of national defense technology and industrial base and 
dependency of base on supplies available only from foreign countries. 
Sec. 830. Expansion of report on implementation of automated information systems 
to include ad^tional matters regarding information resources manage-
ment. 
Sec. 831. Year 2000 software conversion. 
Sec. 832. Procurement from firms in industrial base for production of small arms. 
Sec. 833. Cable television franchise agreements. 
Subtitle A—^Acquisition Management 
SEC. 801. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS. 
(a) FUNDING.—Of the amount authorized to be appropriated 
under section 301(5), $12,000,000 shall be available for carrying 
out the provisions of chapter 142 of title 10, United States Code. 
110 STAT. 2604 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(b) SPECIFIC PROGRAMS.—Of the amounts made available pursu-
ant to subsection (a), $600,000 shall be available for fiscal year 
1997 for the purpose of carrying out programs sponsored by eligible 
entities referred to in subparagraph (D) of section 2411(1) of title 
10, United States Code, that provide procurement technical assist-
ance in distressed areas referred to in subparagraph (B) of section 
2411(2) of such title. If there is an insufficient number of satisfac-
tory proposals for cooperative agreements in such distressed areas 
to allow effective use of the funds made available in accordance 
with this subsection in such areas, the funds shall be allocated 
among the Defense Contract Administration Services regions in 
accordEince with section 2415 of such title. 
SEC. 802. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM. 
Section 831(j) of the National Defense Authorization Act for 
Fiscal Year 1991 (10 U.S.C. 2302 note) is amended— 
(1) in paragraph (1), by striking out "1995" and inserting 
in lieu thereof " 1998"; and 
(2) in paragraph (2), by striking out "1996" and inserting 
in lieu thereof "1999". 
10 use 2430 
SEC. 803. AUTHORITY 
TO WAIVE CERTAIN 
REQUIREMENTS 
FOR 
note. 
DEFENSE ACQUISITION PILOT PROGRAMS. 
(a) AUTHORITY.—^The Secretary of Defense may waive sections 
2399, 2403, 2432, and 2433 of title 10, United States Code, in 
accordance with this section for any defense acquisition program 
designated by the Secretary of Defense for participation in the 
defense acquisition pilot program authorized by section 809 of the 
National Defense Authorization Act for Fiscal Year 1991 (Public 
Law 101-510; 10 U.S.C. 2430 note). 
(b) OPERATIONAL TEST AND EVALUATION.—The Secretary of 
Defense may waive the requirements for operational test and 
evaluation for such a defense acquisition program as set forth 
in section 2399 of title 10, United States Code, if the Secretary— 
(1) determines (without delegation) that such test would 
be unreasonably expensive or impractical; 
(2) develops a suitable alternate operational test program 
for the system concerned; 
(3) describes in the test and evaluation master plan, as 
approved by the Director of Operational Test and Evaluation, 
the method of evaluation that will be used to evaluate whether 
the system will be effective and suitable for combat; and 
Reports. 
(4) submits to the congressional defense committees a 
report containing the determination that was made under para-
graph (1), a justification for that determination, and a copy 
of the plan required by paragraph (3). 
(c) CONTRACTOR GUARANTEES FOR MAJOR WEAPONS SYSTEMS.— 
The Secretary of Defense may waive the requirements of section 
2403 of title 10, United States Code, for such a defense acquisition 
program if an alternative guarantee is used that ensures high 
quality weapons systems. 
(d) SELECTED ACQUISITION REPORTS.—^The Secretary of Defense 
may waive the requirements of sections 2432 and 2433 of title 
10, United States Code, for such a defense acquisition program 
if the Secretary provides a single annual report to Congress at 
the end of each fiscal year that describes the status of the program 
in relation to the baseline description for the program established 
under section 2435 of such title. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2605 
SEC. 804. MODIFICATION OF 
AUTHORITY TO CARRY OUT 
CERTAIN 
PROTOTYPE 
PROJECTS. 
(a) AUTHORIZED OFFICIALS.—(1) Subsection (a) of section 845 
of the National Defense Authorization Act for Fiscal Year 1994 
(Public Law 103-160; 107 Stat. 1721; 10 U.S.C. 2371 note) is 
amended by inserting ", the Secretary of a military department, 
or any other official designated by the Secretary of Defense" after 
"Agency". 
(2) Subsection (b)(2) of such section is amended to read as 
follows: 
"(2) To the maximum extent practicable, competitive procedures 
shall be used when entering into agreements to carry out projects 
under subsection (a).". 
(b) EXTENSION OF AUTHORITY.—Subsection (c) of such section 
is amended by striking out "terminate" and all that follows and 
inserting in lieu thereof "terminate at the end of September 30, 
1999.". 
(c) CONFORMING AND TECHNICAL AMENDMENTS.—Section 845 
of such Act is further amended— 
(1) in subsection (b)— 
(A) in paragraph (1), by striking out "(cX2) and (c)(3) 
of 
such 
section 
2371, as 
redesignated 
by 
section 
827(b)(1)(B)," and inserting in lieu thereof "(e)(2) and (e)(3) 
of such section 2371"; and 
(B) in paragraph (2), by inserting after "Director" the 
following: ", Secretary, or other official"; and 
(2) in subsection (c), by striking out "of the Director". 
SEC. 805. INCREASE IN THRESHOLD AMOUNTS FOR MAJOR SYSTEMS. 
(a) INCREASE AND ADJUSTMENT.—Chapter 137 of title 10, United 
States Code, is amended— 
(1) in section 2302(5), by striking out the third sentence 
and inserting in lieu thereof the following: "A system shall 
be considered a major system if (A) the conditions of section 
2302d of this title are satisfied, or (B) the system is designated 
a 'major system' by the head of the agency responsible for 
the system."; and 
(2) by inserting after section 2302c the following: 
*
*
§ 2302d. Migor system: deHnitional threshold amounts 
"(a) DEPARTMENT OF DEFENSE SYSTEMS.—^For purposes of sec-
tion 2302(5) of this title, a system for which the Department of 
Defense is responsible shall be considered a major system if— 
"(1) the total expenditures for research, development, test, 
and evaluation for the system are estimated to be more than 
$115,000,000 (based on fiscal year 1990 constant dollars); or 
"(2) the eventual total expenditure for procurement of more 
than $540,000,000 (based on fiscal year 1990 constant dollars). 
"(b) 
CIVILIAN AGENCY 
SYSTEMS.—^For purposes of section 
2302(5) of this title, a system for which a civilian agency is respon-
sible shall be considered a major system if total expenditures for 
the system are estimated to exceed the greater of— 
"(1) $750,000 
(based on 
fiscal 
year 
1980 constant 
dollars); or 
"(2) the dollar threshold for a 'major system' established 
by the agency pursuant to Office of Management and Budget 
(OMB) Circular A-109, entitled 'Major Systems Acquisitions'. 
110 STAT. 2606 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(c) ADJUSTMENT AUTHORITY.—(1) The Secretary of Defense 
may adjust the amounts and the base fiscal year provided in sub-
section (a) on the basis of Department of Defense escalation rates. 
"(2) An amount, as adjusted under paragraph (1), that is not 
evenly divisible by $5,000,000 shall be rounded to the nearest 
multiple of $5,000,000. In the case of an amount that is evenly 
divisible by $2,500,000 but not evenly divisible by $5,000,000, the 
amount shall be rounded to the next higher multiple of $5,000,000. 
Effective date. 
"(3) An adjustment under this subsection shall be effective 
Notification. 
after the Secretary transmits to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives a written notification of the adjustment.". 
(b) CLERICAL AMENDMENT.—^The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating 
to section 2302c the following: 
"2302d. Major system: definitional threshold amounts.". 
SEC. 806. REVISIONS IN INFORMATION REQUIRED TO BE INCLUDED 
IN SELECTED ACQUISITION REPORTS. 
Section 2432 of title 10, United States Code, is amended— 
(1) in subsection (c)(1)— 
(A) by striking out "and" at the end of subpara-
graph (B); 
(B) by redesignating subparagraph (C) as subpara-
graph (D); and 
(C) by inserting after subparagraph (B) the following 
new subparagraph (C): 
"(C) the current procurement 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"; and 
(2) in subsection (e), by striking out paragraph (8) £ind 
redesignating paragraph (9) as paragraph (8). 
SEC. 807. INCREASE IN SIMPLIFIED ACQUISITION THRESHOLD FOR 
HUMANITARIAN OR PEACEKEEPING OPERATIONS. 
(a) ARMED SERVICES ACQUISITIONS.—Section 2302(7) of title 
10, United States Code, is amended— 
(1) by inserting "(A)" after "(7)"; 
(2) by inserting after "contingency operation" the following: 
"or a humanitarian or peacekeeping operation"; and 
(3) by adding at the end the following: 
"(B) In subparagraph (A), the term 'humanitarian or peace-
keeping operation' means a military operation in support of 
the provision of humanitarian or foreign disaster assistance 
or in support of a peacekeeping operation under chapter VI 
or VII of the Charter of the United Nations. The term does 
not include routine training, force rotation, or stationing.". 
(b) CIVILIAN AGENCY ACQUISITIONS.—Section 309(d) of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
259(d)) is amended— 
(1) by inserting "(1)" after "(d)"; 
(2) by inserting after "contingency operation" the following: 
"or a humanitarian or peacekeeping operation"; and 
(3) by adding at the end the following: 
"(2) In paragraph (1): 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2607 
"(A) The term 'contingency operation' has the meaning 
given such term in section 101(a) of title 10, United States 
Code. 
"(B) The term 'humanitarian or peacekeeping operation' 
means a miUtary operation in support of the provision of 
humanitarian or foreign disaster assistance or in support of 
a peacekeeping operation under chapter VI or VII of the Charter 
of the United Nations. The term does not include routine train-
ing, force rotation, or stationing.". 
SEC. 808. EXPANSION OF AUDIT RECIPROCITY AMONG FEDERAL 
AGENCIES TO INCLUDE POST-AWARD AUDITS. 
(a) ARMED SERVICES ACQUISITIONS.—Subsection (d) of section 
2313 of title 10, United States Code, is amended to read as follows: 
"(d) LIMITATION ON AUDITS RELATING TO INDIRECT COSTS.— 
The head of an agency may not perform an audit of indirect costs 
under a contract, subcontract, or modification before or after enter-
ing into the contract, subcontract, or modification in any case in 
which the contracting officer determines that the objectives of the 
audit can reasonably be met by accepting the results of an audit 
that was conducted by any other department or agency of the 
Federal Government within one year preceding the date of the 
contracting officer's determination.". 
(b) CIVILIAN AGENCY ACQUISITIONS.—Subsection (d) of section 
304C of the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 254d) is amended to read as follows: 
"(d) LIMITATION ON AUDITS RELATING TO INDIRECT COSTS.— 
An executive agency may not perform an audit of indirect costs 
under a contract, subcontract, or modification before or after enter-
ing into the contract, subcontract, or modification in any case in 
which the contracting officer determines that the objectives of the 
audit can reasonably be met by accepting the results of an audit 
that was conducted by any other department or agency of the 
Federal Government within one year preceding the date of the 
contracting officer's determination.". 
(c) GUIDELINES FOR ACCEPTANCE OF AUDITS BY STATE AND 3I use 7505 
LOCAL GOVERNMENTS RECEIVING FEDERAL ASSISTANCE.—^The Direc- note. 
tor of the Office of Management and Budget shall issue guidelines 
to ensure that an audit of indirect costs performed by the Federal 
Government is accepted by State and local governments that receive 
Federal funds under contracts, grants, or other Federal assistance 
programs. 
SEC. 809. COMPENSATION OF CERTAIN CONTRACTOR PERSONNEL. 
(a) ARMED SERVICES PROCUREMENTS.—(1) During fiscal year 
1997, the head of an agency shall treat the costs described in 
paragraph (2) as not allowable under a covered contract, in the 
same manner as costs listed in section 2324(e)(1) of title 10, United 
States Code. 
(2) The costs covered by paragraph (1) are costs of compensation 
paid with respect to services of any one officer to the extent that 
the total amount of the compensation paid in a fiscal year exceeds 
$250,000. 
(b) CIVILIAN AGENCY PROCUREMENTS.—(1) During fiscal year 
1997, an executive agency shall treat the costs described in para-
graph (2) as not allowable under a covered contract, in the same 
manner as costs listed in section 306(e)(1) of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 256(e)(1)). 
110 STAT. 2608 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(2) The costs covered by paragraph (1) are costs of compensation 
paid with respect to services of any one officer to the extent that 
the total amount of the compensation paid in a fiscal year exceeds 
$250,000. 
(c) DEFINITIONS.—In this section: 
(1) The term "head of an agency has the meaning provided 
in section 2302 of title 10, United States Code. 
(2) The term "executive agency" has the meaning provided 
in section 3 of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 472). 
(3) The term "covered contract"— 
(A) with respect to procurements subject to chapter 
137 of title 10, United States Code, has the meaning pro-
vided by section 2324(1) of such title; and 
(B) with respect to prqcurements subject to title III 
of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), has the meaning provided 
by section 306(1) of such Act (41 U.S.C. 256(1)). 
(4) The term "compensation" means— 
(A) the total amount of wages as defined in section 
3401(a) of the Internal Revenue Code of 1986 for the year 
concerned; and 
(B) the total amount of elective deferrals (within the 
meaning of section 402(g)(3) of such Code) for the year 
concerned. 
(5) The term "officer" means a person who is determined 
to be in a senior management position as established by regula-
tion. 
(d) REVIEW.—^The Administrator for Federal 
Procurement 
Policy, in consultation with the Secretary of Defense, shall conduct 
a comprehensive review of the levels of compensation received by 
senior executives of corporations performing a significant amount 
of business with the Federal Government in order to determine 
the appropriate cost allowability policy in this area. Such a review 
should include the following: 
(1) In consultation with the Secretary of the Treasury, 
an examination of the appropriate definition and treatment 
of compensation, including deferred compensation. 
(2) An examination of the appropriate definition of senior 
executive positions and any other positions that should be 
covered under the cost allowability policy. 
(3) An examination of how to apply the cost allowability 
policy to individual contracts and aggregations of contracts 
within a corporation. 
(4) Any other matter related to the cost allowability of 
executive compensation that the Administrator considers appro-
priate. 
President. 
(e) LEGISLATIVE PROPOSAL.—^Not later than March 1, 1997, 
the President shall submit to Congress a legislative proposal incor-
porating the conclusions reached by the review conducted under 
subsection (d) and establishing a statutory Government standard 
on the cost allowability of executive compensation. 
SEC. 810. EXCEPTION 
TO PROmBITION 
ON 
PROCUREMENT 
OF 
FOREIGN GOODS. 
Section 2534(dX3) of title 10, United States Code, is amended 
by inserting "or would impede the reciprocal procurement of defense 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2609 
items under a memorandum of understanding providing for recip-
rocal procurement of defense items that is entered into under section 
2531 of this title," after "a foreign country,". 
Subtitle B—Other Matters 
SEC. 821. PROfflBITION ON RELEASE OF CONTRACTOR PROPOSALS 
UNDER FREEDOM OF INFORMATION ACT. 
(a) ARMED SERVICES ACQUISITIONS.—Section 2305 of title 10, 
United States Code, is amended by adding at the end the following 
new subsection: 
"(g) PROHIBITION ON RELEASE OF CONTRACTOR PROPOSALS.— 
(1) Except as provided in paragraph (2), a proposal in the possession 
or control of the Department of Defense may not be made available 
to any person under section 552 of title 5. 
"(2) Paragraph (1) does not apply to any proposal that is set 
forth or incorporated by reference in a contract entered into between 
the Department and the contractor that submitted the proposal. 
"(3) In this subsection, the term 'proposal' means any proposal, 
including a technical, management, or cost proposal, submitted 
by a contractor in response to the requirements of a solicitation 
for a competitive proposal.". 
(b) CIVILIAN AGENCY ACQUISITIONS.—Section 303B of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253b) is amended by adding at the end the following new subsection: 
"(m) PROHIBITION ON RELEASE OF CONTRACTOR PROPOSALS.— 
(1) Except as provided in paragraph (2), a proposal in the possession 
or control of an executive agency may not be made available to 
any person under section 552 of title 5, United States Code. 
"(2) Paragraph (1) does not apply to any proposal that is set 
forth or incorporated by reference in a contract entered into between 
the agency and the contractor that submitted the proposal. 
"(3) In this subsection, the term 'proposal' means any proposal, 
including a technical, management, or cost proposal, submitted 
by a contractor in response to the requirements of a solicitation 
for a competitive proposal.". 
SEC. 822. AMENDMENTS RELATING TO REPORTS ON PROCUREMENT 
REGULATORY ACTIVITY, 
Subsection (g) of section 25 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 421) is amended— 
(1) in paragraph (1)— 
(A) by striking out "within 6 months after the date 
of enactment of this section and every 6 months thereafter" 
and inserting in lieu thereof "every 12 months"; and 
(B) by inserting "and" after the semicolon at the end; 
(2) in paragraph (2)(H), by striking out"; and" and inserting 
in lieu thereof a period; and 
(3) by striking out paragraph (3). 
SEC. 823. AMENDMENT OF MULTIYEAR LIMITATION ON CONTRACTS 
FOR INSPECTION, MAINTENANCE, AND REPAIR. 
Paragraph (14) of section 210(a) of the Federsil Property and 
Administrative Services Act of 1949 (40 U.S.C. 490(a)) is amended 
by striking out "for periods not exceeding three years" and inserting 
in lieu thereof "for periods not exceeding five years". 
110 STAT. 2610 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 824. STREAMLINED NOTICE REQUIREMENTS TO CONTRACTORS 
AND EMPLOYEES REGARDING TERMINATION OR SUBSTAN-
TIAL REDUCTION IN CONTRACTS UNDER MAJOR DEFENSE 
PROGRAMS. 
(a) ELIMINATION OF UNNECESSARY REQUIREMENTS.—Section 
4471 of the Defense Conversion, Reinvestment, and Transition 
Assistance Act of 1992 (division D of Public Law 102-484; 10 
U.S.C. 2501 note) is amended— 
(1) by striking out subsection (a); 
(2) by striking out subsection (f), except paragraph (4); 
(3) by redesignating subsections (b), (c), (d), (e), and (g) 
as subsections (a), (b), (c), (d), and (f), respectively; and 
(4) by redesignating such paragraph (4) as subsection (e). 
(b) NOTICE TO CONTRACTORS.—Subsection (a) of such section, 
as redesignated by subsection (a)(3), is amended by striking out 
paragraphs (1) and (2) and inserting in lieu thereof the following: 
"(1) shall identify each contract (if any) under major defense 
programs of the Department of Defense that will be terminated 
or substantially reduced as a result of the funding levels pro-
vided in that Act; and 
"(2) shall ensure that notice of the termination of, or 
substantial reduction in, the funding of the contract is 
provided— 
"(A) directly to the prime contractor under the con-
tract; and 
"(B) directly to the Secretary of Labor.". 
(c) NOTICE TO SUBCONTRACTORS.—Subsection (b) of such 
section, as redesignated by subsection (a)(3), is amended— 
(1) by striking out "As soon as" and all that follows through 
"prime contractor shall—" in the matter preceding paragraph 
(1) and inserting in lieu thereof "Not later than 60 days after 
the date on which the prime contractor for a contract under 
a major defense program receives notice under subsection (a), 
the prime contractor shall—"; 
(2) in paragraph (1)— 
(A) by striking out "for that program under a contract" 
and inserting in lieu thereof "under that prime contract 
for subcontracts"; and 
(B) by striking out "for the program"; and 
(3) in paragraph (2)(A), by striking out "for the program 
under a contract" and inserting in lieu thereof "for sub-
contracts". 
(d) NOTICE TO EMPLOYEES AND STATE DISLOCATED WORKER 
UNIT.—Subsection (c) of such section, as redesignated by subsection 
(a)(3), is amended by striking out "under subsection (a)(1)" and 
all that follows through "a defense program," in the matter preced-
ing paragraph (1) and inserting in lieu thereof "under subsection 
(a),". 
(e) CROSS REFERENCES AND CONFORMING AMENDMENTS.—(1) 
Subsection (d) of such section, as redesignated by subsection (a)(3), 
is amended— 
(A) by striking out "a major defense program provided 
under subsection (d)(1)" and inserting in lieu thereof "a defense 
contract provided under subsection (cXl)"; and 
(B) by striking out "the program" and inserting in lieu 
thereof "the contract". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2611 
(2) Subsection (e) of such section, as redesignated by subsection 
(aX4), is amended— 
(A) by striking out "ELIGIBILITY" and inserting in lieu 
thereof "ELIGIBILITY"; and 
(B) by striking out "under paragraph (3)" and inserting 
in Ueu thereof "or cancellation of the termination of, or substan-
tial reduction in, contract funding". 
(3) Subsection (f) of such section, as redesignated by subsection 
(aX3), is amended in paragraph (2)— 
(A) by inserting "a defense contract under" before "a major 
defense program"; and 
(B) by striking out "contracts under the program" and 
inserting in lieu thereof "the funds obligated by the contract". 
SEC. 825. REPEAL OF NOTICE REQUIREMENTS FOR SUBSTANTIALLY 
OR SERIOUSLY AFFECTED PARTIES IN DOWNSIZING 
EFFORTS. 
Sections 4101 and 4201 of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1850, 
1851; 10 U.S.C. 2391 note) are repealed. 
SEC. 826. STUDY OF EFFECTIVENESS OF DEFENSE MERGERS. 
(a) STUDY.—^The Secretary of Defense shall conduct a study 
on mergers and acquisitions in the defense sector. The study shall 
address the following: 
(1) The effectiveness of defense mergers and acquisitions 
in eliminating excess capacity within the defense industry. 
(2) The degree of change in the dependence by defense 
contractors on defense-related Federal contracts within their 
overall business after mergers. 
(3) The effect on defense industry employment resulting 
from defense mergers and acquisitions occurring during the 
three years preceding the date of the enactment of this Act. 
(4) The effect on competition for defense contracts. 
(b) REPORT.—^Not later than six months after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on the results of the study conducted under 
subsection (a). 
SEC. 827. ANNUAL REPORT RELATING TO BUY AMERICAN ACT. 
41USC lOb-3. 
The Secretary of Defense shall submit to Congress, not later 
than 120 days after the end of each fiscEil year, a report on the 
amount of purchases by the Department of Defense from foreign 
entities in that fiscal year. Such report shall separately indicate 
the dollar value of items for which the Buy American Act (41 
U.S.C. 10a et seq.) was waived pursuant to any of the following: 
(1) Any reciprocal defense procurement memorandum of 
understanding described in section 849(c)(2) of Public Law 103-
160 (41 U.S.C. lOb-2 note). 
(2) The Trade Agreements Act of 1979 (19 U.S.C. 2501 
et seq.) 
(3) Any international agreement to which the United States 
is a party. 
SEC. 828. FOREIGN ENVIRONMENTAL TECHNOLOGY. 
Subsection (b) of section 2536 of title 10, United States Code, 
is amended to read as follows: 
110 STAT. 2612 
PUBLIC LAW 104r-201—SEPT. 23, 1996 
"(b) WAIVER AUTHORITY.—(1) The Secretary concerned may 
waive the application of subsection (a) to a contract award if— 
"(A) the Secretary concerned determines that the waiver 
is essentigd to the national security interests of the United 
States; or 
"(B) in the case of a contract awarded for environmental 
restoration, remediation, or waste management at a Depart-
ment of Defense or Department of Energy facility— 
"(i) the Secretary concerned determines that the waiver 
will advEince the environmental restoration, remediation, 
or waste management objectives of the department con-
cerned and will not harm the national security interests 
of the United States; and 
"(ii) the entity to which the contract is awarded is 
controlled by a foreign government with which the Sec-
retary concerned is authorized to exchange Restricted Data 
under section 144 c. of the Atomic Energy Act of 1954 
(42 U.S.C. 2164(c)). 
Notification. 
"(2) The Secretary concerned shall notify Congress of any deci-
sion to grant a waiver under paragraph (1)(B) with respect to 
a contract. The contract may be awarded only after the end of 
the 45-day period beginning on the date the notification is received 
by the committees.". 
SEC. 829. ASSESSMENT OF NATIONAL DEFENSE TECHNOLOGY AND 
INDUSTRIAL BASE AND DEPENDENCY OF BASE ON 
SUPPLIES AVAILABLE ONLY FROM FOREIGN COUNTRIES. 
(a) 
NATIONAL SECURITY OBJECTIVES FOR NATIONAL 
TECH-
NOLOGY AND INDUSTRIAL BASE.—Section 2501(a) of title 10, United 
States Code, is amended by adding at the end the following: 
"(5) Providing for the development, manufacture, and sup-
ply of items and technologies critical to the production and 
sustainment of advanced military weapon systems within the 
national technology and industrial base.". 
(b) NATIONAL DEFENSE PROGRAM FOR ANALYSIS OF THE TECH-
NOLOGY AND INDUSTRIAL BASE.—Section 2503 of title 10, United 
States Code, is amended— 
(1) in subsection (a)— 
(A) by striking out "(1) The Secretary of Defense, in 
consultation with the National Defense Technology and 
Industrial Base Council," in paragraph (1) and inserting 
in lieu thereof "The Secretary of Defense"; and 
(B) by striking out paragraphs (2), (3), and (4); and 
(2) in subsection (c)(3)(A)— 
(A) by striking out "the National Defense Technology 
and Industrial Base Council in" and inserting in lieu 
thereof "the Secretary of Defense for"; and 
(B) by striking out "and the periodic plans required 
by section 2506 of this title". 
(c) PERIODIC DEFENSE CAPABILITY ASSESSMENTS, INCLUDING 
FOREIGN DEPENDENCY.—(1) Section 2505 of title 10, United States 
Code, is amended to read as follows: 
**§2505. National technology and industrial base: periodic 
defense capability assessments 
"(a) PERIODIC ASSESSMENT.—Each fiscal year, the Secretary 
of Defense shall prepare selected assessments of the capability 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2613 
of the national technology and industrial base to attain the national 
security objectives set forth in section 2501(a) of this title. The 
Secretary of Defense shall prepare such assessments in consultation 
with the Secretary of Commerce £ind the Secretary of Energy. 
"(b) ASSESSMENT PROCESS.—The Secretary of Defense shall 
ensure that technology and industrial capability assessments— 
"(1) describe sectors or capabilities, their underlying infra-
structure and processes; 
"(2) analyze present and projected financial performance 
of industries supporting the sectors or capabilities in the assess-
ment; and 
"(3) identify technological and industriEd capabilities and 
processes for which there is potential for the national industrial 
£ind technology base not to be able to support the achievement 
of national security objectives. 
"(c) ASSESSMENT OF EXTENT OF DEPENDENCY ON FOREIGN 
SOURCE ITEMS.—^Each assessment under subsection (a) shall include 
a separate discussion and presentation regarding the extent to 
which the national technology and industrial base is dependent 
on items for which the source of supply, manufacture, or technology 
is outside of the United States and Canada and for which there 
is no immediately available source in the United States or Canada. 
The discussion and presentation regarding foreign dependency 
shall— 
"(1) identify cases that pose an unacceptable risk of foreign 
dependency, as determined by the Secretary; and 
"(2) present actions being taken or proposed to be taken 
to remedy the risk posed by the cases identified under para-
graph (1), including efforts to develop a domestic source for 
the item in question. 
"(d) INTEGRATED PROCESS.—^The Secretary of Defense shall 
ensure that consideration of the technology and industrial base 
assessments is integrated into the overall budget, acquisition, and 
logistics support decision processes of the Department of Defense.". 
(2) Section 2502(b) of title 10, United States Code, is amended— 
(A) by striking out "the following responsibilities:" and 
all that follows through "effective cooperation" and inserting 
in lieu thereof "the responsibility to ensure effective coopera-
tion"; and 
(B) by striking out paragraph (2); and 
(3) by redesignating subparagraphs (A), (B), and (C) as para-
graphs (1), (2), and (3), respectively, and adjusting the margin 
of such paragraphs two ems to the left. 
(d) REPEAL OF REQUIREMENT FOR PERIODIC DEFENSE CAPABIL-
ITY PLAN; DEVELOPMENT OF POLICY GUIDANCE.—Section 2506 of 
title 10, United States Code, is amended to read as follows: 
''§2506. Department of Defense technology and industrial 
base policy guidance 
"(a) DEPARTMENTAL GUIDANCE.—^The Secretary of Defense shall 
prescribe departmental guidance for the attainment of each of the 
national security objectives set forth in section 2501(a) of this 
title. Such guidance shall provide for technological and industrial 
capability considerations to be integrated into the budget allocation, 
weapons acquisition, and logistics support decision processes. 
"(b) REPORT TO CONGRESS.—The Secretary of Defense shall 
report on the implementation of the departmental guidance in the 
110 STAT. 2614 
PUBLIC LAW 104-201—SEPT. 23, 1996 
annual report to Congress submitted pursuant to section 2504 of 
this title.". 
(e) ANNUAL REPORT TO CONGRESS.—Subchapter II of chapter 
148 of title 10, United States Code, is amended by inserting m e r 
section 2503 the following new section: 
*
^
§ 2504. Annual report to Congress 
'The Secretary of Defense shall transmit to the Committee 
on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives by March 1 of each year 
a report which shall include the following information: 
"(1) A description of the departmental guidance prepared 
pursuant to section 2506 of this title. 
"(2) A description of the methods and analyses being under-
taken by the Department of Defense alone or in cooperation 
with other Federsd agencies, to identify and address concerns 
regarding technological and industrial capabilities of the 
national technology and industrial base. 
"(3) A description of the assessments prepared pursuant 
to section 2505 of this title and other analyses used in develop-
ing the budget submission of the Department of Defense for 
the next fiscal year. 
"(4) Identification of each program designed to sustain 
specific essential technological and industrial capabilities and 
processes of the national technology and industrial base.". 
(f) REPEAL OF REQUIREMENT TO COORDINATE THE ENCOURAGE-
MENT OF TECHNOLOGY TRANSFER WITH THE COUNCIL.—Subsection 
2514(c) of title 10, United States Code, is amended by striking 
out paragraph (5). 
(g) CLERICAL AMENDMENTS.—(1) The table of sections at the 
beginning of subchapter II of chapter 148 of title 10, United States 
Code, is amended by inserting after the item relating to section 
2503 the following new item: 
"2504. Annual report to Congress.". 
(2) Such table of sections is further amended by striking out 
the item relating to section 2506 and inserting in lieu thereof 
the following new item: 
"2506. Department of Defense technology and industrial base policy guidance.". 
1
0 use 2501 
(h) REPEAL OF SUPERSEDED AND EXECUTED LAW.—Sections 
note. 
4218, 4219, and 4220 of the National Defense Authorization Act 
for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 2505 note 
and 2506 note) are repealed. 
10 use 113 note. 
SEC. 830. EXPANSION OF REPORT ON IMPLEMENTATION OF AUTO-
MATED INFORMATION SYSTEMS TO INCLUDE ADDITIONAL 
MATTERS 
REGARDING 
INFORMATION 
RESOURCES 
MANAGEMENT. 
(a) EXPANDED REPORT.—The Secretary of Defense shall include 
in the report submitted in 1997 under section 381(f) of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337; 10 U.S.C. 113 note) a discussion of the following matters 
relating to information resources management: 
(1) The progress made in implementing the Information 
Technology Management Reform Act of 1996 (division E of 
Public Law 104-106; 110 Stat. 679; 40 U.S.C. 1401 et seq.) 
and the amendments made by that Act. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2615 
(2) The progress made in implementing the strategy for 
the development or modernization of automated information 
systems for the Department of Defense, as required by section 
366 of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106; 110 Stat. 275; 10 U.S.C. 113 note). 
(3) Plsms of the Department of Defense for establishing 
an integrated framework for management of information 
resources within the department. 
(b) SPECIFIC ELEMENTS OF REPORT.—^The presentation of mat-
ters under subsection (a) shall specifically include a discussion 
of the following: 
(1) The status of the implementation of performance 
measures. 
(2) The specific actions being taken to link the proposed 
performance measures to the planning, programming, and 
budgeting system of the Department of Defense and to the 
life-cycle management processes of the department. 
(3) The results of pilot program testing of proposed perform-
ance measures. 
(4) The additional training necessary for the implementa-
tion of performance-based information management. 
(5) The department-wide actions that are necessary to 
comply with the requirements of the following provisions of 
law: 
(A) The amendments made by the 
Government 
Performsmce and Results Act of 1993 (Public Law 103-
62; 107 Stat. 285). 
(B) The Information Technology Management Reform 
Act of 1996 (division E of Public Law 104-106; 110 Stat. 
679; 40 U.S.C. 1401 et seq.) and the amendments made 
by that Act. 
(C) Title V of the Federal Acquisition Streamlining 
Act of 1994 (Public Law 103-355; 108 Stat. 3349) and 
the amendments made by that title. 
(D) The Chief Financial Officers Act of 1990 (Public 
Law 101-576; 104 Stat. 2838) and the amendments made 
by that Act. 
SEC. 831. YEAR 2000 SOFTWARE CONVERSION. 
10USC2302 
(a) YEAR 2000 SOFTWARE CONVERSION.—^The Secretary of °°**' 
Defense shall ensure that, as soon as practicable, all information 
technology acquired by the Depgirtment of Defense pursuant to 
contracts entered into after September 30, 1996, has the capabilities 
to process date and date-related data in 2000. 
(b) ASSESSMENT.—^The Secretary, acting through the chief 
information officers within the department (as designated pursuant 
to section 3506 of title 44, United States Code), shall assess all 
information technology within the Department of Defense to deter-
mine the extent to which such technology has the capabilities 
to operate effectively. 
(c) PLAN.—^Not later than January 1, 1997, the Secretary shall 
submit to Congress a detailed plan for eliminating any deficiencies 
identified pursuant to subsection (b). The plan shall include— 
(1) a list of affected major systems; 
(2) a description of how the deficiencies could affect the 
national security of the United States; and 
110 STAT. 2616 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(3) an estimate and prioritization of the resources that 
are necessary to eliminate the deficiencies. 
SEC. 832. PROCUREMENT FROM FIRMS IN INDUSTRIAL BASE FOR 
PRODUCTION OF SMALL ARMS. 
(a) REQUIREMENT.—Chapter 146 of title 10, United States Code, 
is amended by adding at the end the following new section: 
**§2473. Procurements from the small arms 
production 
industrial base 
"(a) 
AUTHORITY 
TO 
LIMIT 
PROCUREMENTS 
To 
CERTAIN 
SOURCES.—^To the extent that the Secretary of Defense determines 
necessary to preserve the small arms production industrial base, 
the Secretary may require that any procurement of property or 
services described in subsection (b) for the Department of Defense 
be made only from a firm in the small arms production industrial 
base. 
"(b) COVERED PROPERTY AND SERVICES.—Subsection (a) applies 
to the following: 
"(1) Repair parts for small arms. 
"(2) Modifications of parts to improve small arms used 
by the armed forces. 
"(c) SMALL ARMS PRODUCTION INDUSTRIAL BASE.—In this sec-
tion, the term 'small arms production industrial base' means the 
firms comprising the small arms production industrial base, as 
described in the plan entitled 'Preservation of Critical Elements 
of the Small Arms Industrial Base', dated January 8, 1994, that 
was prepared by an independent assessment panel of the Army 
Science Board.". 
(b) CLERICAL AMENDMENT.—^The table of sections at the begin-
ning of such chapter is amended by adding at the end the following 
new item: 
"2473. Procurements from the small arms production industrial base.". 
SEC. 833. CABLE TELEVISION FRANCHISE AGREEMENTS. 
Based on the advisory opinion from the United States Court 
of Federal Claims, In the Matter of the Department of Defense 
Cable 
Television 
Franchise 
Agreements, 
National 
Defense 
Authorization Act for Fiscal Year 1996, Section 823, No. 96-133X 
(July 11, 1996)— 
(1) cable television franchise agreements for the construc-
tion, installation, or capital improvement of cable systems at 
military installations shall be considered contracts for purposes 
of the Federal Acquisition Regulation; 
(2) cable television operators are entitled to recovery of 
their investments at such installations to the extent authorized 
in part 49 of the Federal Acquisition Regulation; and 
(3) the appropriate official of the Department of Defense 
shall promptly issue a written notice of the termination for 
the convenience of the Government of the contracts described 
in such advisory opinion and commence settlement negotiations 
pursuant to the requirements of part 49 of the Federal Acquisi-
tion Regulation. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2617 
TITLE IX—DEPARTMENT OF DEFENSE 
ORGANIZATION AND MANAGEMENT 
Subtitle A—General Matters 
Sec. 901. Repeal of previously enacted reduction in number of statutory positions 
in Office of the Secretary of Defense. 
Sec. 902. Additional required reduction in defense acquisition workforce. 
Sec. 903. Reduction of personnel assigned to Office oi the Secretary of Defense. 
Sec. 904. Report on military department headquarters staffs. 
Sec. 905. Matters to be considered in next assessment of current missions, respon-
sibilities, and force structure of the unified combatant commands. 
Sec. 906. Transfer of authority to control transportation systems in time of war. 
Sec. 907. Codification of requirements relating to continued operation of the 
Uniformed Services University of the Health Sciences. 
Sec. 908. Joint Requirements Oversight Council. 
Sec. 909. Membership of the Ammunition Storage Board. 
Sec. 910. Removal oiSecretary of the Army fi-om membership on the Foreign Trade 
Zone Board. 
Sec. 911. Composition of sdrcrafl accident investigation boards. 
Sec. 912. Mission of the White House Communications Agency. 
Subtitle B—^Force Structure Review 
Sec. 921. Short title. 
Sec. 922. Findings. 
Sec. 923. Quadrennial Defense Review. 
Sec. 924. National Defense Panel. 
Sec. 925. Postponement of deadlines. 
Sec. 926. Definitions. 
Subtitle A—General Matters 
SEC. 901. REPEAL OF PREVIOUSLY ENACTED REDUCTION IN NUMBER 
OF STATUTORY POSrriONS IN OFFICE OF THE SECRETARY 
OF DEFENSE. 
Section 903 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 401) is repealed. 
SEC. 902. ADDITIONAL REQUIRED REDUCTION IN DEFENSE ACQUISI-
TION WORKFORCE. 
(a) ADDITIONAL REDUCTIONS FOR FISCAL YEAR 1997.—Section 
906(d) of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106; 110 Stat. 405) is amended in paragraph 
(1) by striking out "positions during fiscal year 1996" and all that 
follows and inserting in lieu thereof "so that— 
"(A) the total number of defense acquisition personnel as 
of October 1, 1996, is less than the baseline number by at 
least 15,000; and 
"(B) the total number of defense acquisition personnel as 
of October 1, 1997, is less than the baseline number by at 
least 30,000.". 
(b) BASELINE NUMBER.—Such section is further amended by 
adding at the end the following new paragraph: 
"(3) For purposes of this subsection, the term *baseline number* 
means the total number of defense acquisition personnel as of 
October 1, 1995.". 
SEC. 
903. REDUCTION OF 
PERSONNEL 
ASSIGNED 
TO 
OFFICE 
OF 
THE 
SECRETARY 
OF 
DEFENSE. 
(a) PERMANENT LIMITATION ON O S D PERSONNEL.—Effective 
October 1, 1999, the number of OSD personnel may not exceed 
75 percent of the baseline number. 
10 u s e 131,131 
note, 133a, 134a, 
137,138,142, 
167 note, 176, 
1056, 1216, 1587, 
10201. 
10 u s e 131 note. 
Effective dates. 
110 STAT. 2618 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(b) PHASED REDUCTION.—^The number of OSD personnel— 
(1) as of October 1, 1997, may not exceed 85 percent of 
the baseline number; and 
(2) as of October 1, 1998, may not exceed 80 percent of 
the baseline number. 
(c) BASELINE NUMBER.—^For purposes of this section, the term 
**baseline number" means the number of OSD personnel as of 
October 1, 1994. 
(d) OSD PERSONNEL DEFINED.—^For purposes of this section, 
the term "OSD personnel" means military and civilian personnel 
of the Department of Defense who are assigned to, or employed 
in, functions in the Office of the Secretary of Defense (including 
Direct Support Activities of that Office and the Washington Head-
quarters Services of the Department of Defense). 
(e) LIMITATION ON REASSIGNMENT OF FUNCTIONS.—In carrying 
out reductions in the number of personnel assigned to, or employed 
in, the Office of the Secretary of Defense in order to comply with 
this section, the Secretary of Defense may not reassign functions 
solely in order to evade the requirements contained in this section. 
(f) FLEXIBILITY.—If the Secretary of Defense determines, and 
certifies to Congress, that the limitation in subsection (b) with 
respect to any fiscal year would adversely affect United States 
national security, the Secretary may waive the limitation under 
that subsection with respect to that fiscal year. If the Secretary 
of Defense determines, and certifies to Congress, that the limitation 
in subsection (a) during fiscal year 1999 would adversely affect 
United States national security, the Secretary may waive the limita-
tion under that subsection with respect to that fiscal year. The 
authority under this subsection may be used only once, with respect 
to a single fiscal year. 
(g) REPEAL OF PRIOR REQUIREMENT.—Section 901(d) of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106; 110 Stat. 401) is repealed. 
SEC. 904. REPORT ON MILITARY DEPARTMENT HEADQUARTERS 
STAFFS. 
(a) REVIEW BY SECRETARY OF DEFENSE.—^The Secretary of 
Defense shall conduct a review of the size, mission, organization, 
and functions of the military department headquarters staffs. This 
review shall include the following: 
(1) An assessment on the adequacy of the present organiza-
tion structure to efficiently and effectively support the mission 
of the military departments. 
(2) An assessment of options to reduce the number of 
personnel assigned to the military department headquarters 
staffs. 
(3) An assessment of the extent of unnecessary duplication 
of functions between the Office of the Secretary of Defense 
and the military department headquarters staffs. 
(4) An assessment of the possible benefits that could be 
derived from further functional consolidation between the 
civilian secretariat of the military departments and the staffs 
of the military service chiefs. 
(5) An assessment of the possible benefits that could be 
derived from reducing the number of civilian officers in the 
military departments who are appointed by and with the advice 
and consent of the Senate. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2619 
(b) REPORT.—Not later than March 1, 1997, the Secretary of 
Defense shall submit to the congressional defense committees a 
report containing— 
(1) the findings and conclusions of the Secretary resulting 
from the review under subsection (a); and 
(2) a plan for implementing resulting recommendations, 
including proposals for legislation (with supporting rationale) 
that would be required as a result of the review. 
(c) REDUCTION IN TOTAL NUMBER OF PERSONNEL ASSIGNED.— 
In developing the plan under subsection (b)(2), the Secretary shall 
make every effort to provide for significant reductions in the overall 
number of military and civilian personnel assigned to or serving 
in the military department headquarters staffs. 
(d) MILITARY DEPARTMENT HEADQUARTERS STAFFS DEFINED.— 
For the purposes of this section, the term "military department 
headquarters staffs" mesms the offices, organizations, and other 
elements of the Department of Defense comprising the following: 
(1) The Office of the Secretary of the Army. 
(2) The Army Staff. 
(3) The Office of the Secretary of the Air Force. 
(4) The Air Staff. 
(5) The Office of the Secretary of the Navy. 
(6) The Office of the Chief of Naval Operations. 
(7) Headquarters, Marine Corps. 
SEC. 905. MATTERS TO BE CONSIDERED IN NEXT ASSESSMENT OF 
10 USC 161 note. 
CURRENT 
MISSIONS, RESPONSIBILITIES, AND FORCE 
STRUCTURE OF THE UNIFIED COMBATANT COMMANDS. 
The Chairman of the Joint Chiefs of Staff shall consider, as 
part of the next periodic review by the Chairman of the missions, 
responsibilities, and force structure of the unified combatant com-
mands pursuant to section 161(b) of title 10, United States Code, 
the following matters: 
(1) Whether there exists an adequate distribution of 
threats, 
mission 
requirements, 
and 
responsibilities 
for 
geographic areas among the regional unified combatant com-
mands. 
(2) Whether reductions in the overall force structure of 
the Armed Forces permit the United States to better execute 
its warfighting plans through fewer or differently configured 
unified combatant commands, including— 
(A) a total of five or fewer commands, all of which 
are regional; 
(B) a total of three commands consisting of an east-
ward-oriented command, a westward-oriented command, 
and a central command; 
(C) a purely functional command structure, involving 
(for example) a first theater command, a second theater 
command, a logistics command, a special contingencies 
command, and a strategic command; or 
(D) any other command structure or configuration the 
Chairman finds appropriate. 
(3) Whether any missions, staff, facilities, equipment, train-
ing programs, or other assets or activities of the unified combat-
ant commands are redundant. 
(4) Whether warfighting requirements are adequate to jus-
tify the current functional commands. 
110 STAT. 2620 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Effective date. 
(5) Whether the exclusion of certain nations from the Areas 
of Responsibihty of the unified combatant commands presents 
difficulties with respect to the achievement of United States 
national security objectives in those areas. 
(6) Whether the current geographic boundary between the 
United States Central Command and the United States Euro-
pean Command through the Middle East could create command 
conflicts in the context of a major regional conflict in the 
Middle East region. 
SEC. 906. TRANSFER OF AUTHORITY TO CONTROL TRANSPORTATION 
SYSTEMS IN TIME OF WAR. 
(a) AUTHORITY OF SECRETARY OF DEFENSE.—Section 4742 of 
title 10, United States Code, is amended by striking out "Secretary 
of the Army" and inserting in lieu thereof "Secretary of Defense". 
(b) TRANSFER OF SECTION.—Such section, as amended by sub-
section (a), is transferred to the end of chapter 157 of such title 
and is redesignated as section 2644. 
(c) CONFORMING REPEAL.—Section 9742 of such title is repealed. 
(d) CLERICAL AMENDMENTS.—(1) The table of sections at the 
beginning of chapter 157 of such title is amended by adding at 
the end the following new item: 
"2644. Control of transportation systems in time of war.". 
(2) The table of sections at the beginning of chapter 447 of 
such title is amended by striking out the item relating to section 
4742. 
(3) The table of sections at the beginning of chapter 947 of 
such title is amended by striking out the item relating to section 
9742. 
SEC. 907. CODIFICATION 
OF 
REQUIREMENTS 
RELATING 
TO 
CONTINUED OPERATION OF THE UNIFORMED SERVICES 
UNIVERSITY OF THE HEALTH SCIENCES. 
(a) CODIFICATION OF EXISTING LAW.—(1) Chapter 104 of title 
10, United States Code, is amended by inserting after section 2112 
the following new section: 
"§ 2112a. Continued operation of University 
"(a) CLOSURE PROHIBITED.—^The University may not be closed. 
"(b) PERSONNEL STRENGTH.—During the five-year period begin-
ning on October 1, 1996, the personnel staffing levels for the Univer-
sity may not be reduced below the personnel staffing levels for 
the University as of October 1, 1993.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2112 
the following new item: 
"2112a. Continued operation of University.". 
(b) 
REPEAL OF SUPERSEDED LAW.—(1) Section 922 
of 
the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 108 Stat. 2829; 10 U.S.C. 2112 note) is amended 
by striking out subsection (a). 
(2) Section 1071 of the National Defense Authorization Act 
for Fiscal Year 1996 (PubUc Law 104-106; 110 Stat. 445; 10 U.S.C. 
2112 note) is amended by striking out subsection (b). 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2621 
SEC. 908. JOINT REQUIREMENTS OVERSIGHT COUNCIL. 
Section 181 of title 10, United States Code, as added effective 
Effective date. 
January 31, 1997, is amended by adding at the end the following 
new subsection: 
"(d) AVAILABILITY OF OVERSIGHT INFORMATION TO CONGRES-
SIONAL DEFENSE COMMITTEES.—(1) The Secretary of Defense shall 
ensure that, in the case of a recommendation by the Chairman 
to the Secretary that is approved by the Secretary, oversight 
information with respect to such recommendation that is produced 
as a result of the activities of the Joint Requirements Oversight 
Council is made available in a timely fashion to the congressional 
defense committees. 
"(2) In this subsection: 
"(A) The term 'oversight information' means information 
and materials comprising analysis and justification that are 
prepared to support a recommendation that is made to, and 
approved by, the Secretary of Defense. 
"(B) The term 'congressional defense committees' means— 
"(i) the Committee on Armed Services and the Commit-
tee on Appropriations of the Senate; and 
"(ii) the Committee on National Security and the 
Committee on Appropriations of the House of Representa-
tives.". 
SEC. 909. MEMBERSHIP OF THE AMMUNITION STORAGE BOARD. 
Section 172(a) of title 10, United States Code, is amended 
by striking out "a joint board of officers selected by them" and 
inserting in lieu thereof "a joint board selected by them composed 
of officers, civilian officers and employees of the Department of 
Defense, or both". 
SEC. 910. REMOVAL OF SECRETARY OF THE ARMY FROM MEMBER-
SHIP ON THE FOREIGN TRADE ZONE BOARD. 
The first section of the Act of June 18, 1934 (Public Law 
Numbered 397, Seventy-third Congress; 48 Stat. 998) (19 U.S.C. 
81a), popularly known as the "Foreign Trade Zones Act", is 
amended— 
(1) in subsection (b), by striking out "the Secretary of 
the Treasury, and the Secretary of War" and inserting in lieu 
thereof "and the Secretary of the Treasury"; and 
(2) in subsection (c), by striking out "Alaska, Hawaii,". 
SEC. 911. COMPOSITION 
OF AIRCRAFT ACCIDENT 
INVESTIGATION 
BOARDS. 
(a) SELECTION OF BOARD MEMBERS.—(1) Chapter 134 of title 
10, United States Code, is amended by adding at the end the 
following new section: 
**§2255. Aircraft accident investigation boards: composition 
requirements 
"(a) REQUIRED MEMBERSHIP OF BOARDS.—Whenever the 
Sec-
retsiry of a military department convenes £in aircraft accident inves-
tigation board to conduct an accident investigation (as described 
in section 2254(a)(2) of this title) with respect to a Class A accident 
involving an aircraft under the jurisdiction of the Secretary, the 
Secretary shall select the membership of the board so that— 
"(1) a majority of the members (or in the case of a board 
consisting of a single member, the member) is selected from 
110 STAT. 2622 
PUBLIC LAW 104-201—SEPT. 23, 1996 
units other than the mishap unit or a unit subordinate to 
the mishap unit; and 
"(2) in the case of a board consisting of more than one 
member, at least one member of the board is a member of 
the armed forces or an officer or an employee of the Department 
of Defense who possesses knowledge and expertise relevant 
to aircraft accident investigations. 
"(b) EXCEPTION.—(1) The Secretary of the military department 
concerned may waive the requirement of subsection (a)(1) in the 
case of an aircraft accident if the Secretary determines that— 
"(A) it is not practicable to meet the 
requirement 
because of— 
"(i) the remote location of the aircraft accident; 
"(ii) an urgent need to promptly begin the investi-
gation; or 
"(iii) a lack of available persons outside of the mishap 
unit who have adequate knowledge and expertise regarding 
the type of aircraft involved in the accident; and 
"(B) the objectivity and independence of the 
aircraft 
accident investigation board will not be compromised. 
Notification. 
"(2) The Secretary shall notify Congress of a waiver exercised 
under this subsection and the reasons therefor. 
"(c) CONSULTATION REQUIREMENT.—In the case of an aircraft 
accident investigation board consisting of a single member, the 
member shall consult with a member of the armed forces or an 
officer or an employee of the Department of Defense who possesses 
knowledge and expertise relevant to aircraft accident investigations. 
"(d) DESIGNATION OF CLASS A ACCIDENTS.—^Not later than 60 
days after an aircraft accident involving an aircraft under the 
jurisdiction of the Secretary of a military department, the Secretary 
shall determine whether the aircraft accident should be designated 
as a Class A accident for purposes of this section. 
"(e) DEFINITIONS.—In this section: 
"(1) The term 'Class A accident' means an accident involv-
ing an aircraft that results in— 
"(A) the loss of life or permanent disability; 
"(B) damages to the aircraft, other property, or a com-
bination of both, in an amount in excess of the amount 
specified by the Secretary of Defense for purposes of deter-
mining Class A accidents; or 
"(C) the destruction of the aircraft. 
"(2) The term 'mishap unit', with respect to an aircraft 
accident investigation, means the unit of the armed forces 
(at the squadron or battalion level or equivalent) to which 
was assigned the flight crew of the aircraft that sustained 
the accident that is the subject of the investigation.". 
(2) The table of sections at the beginning of subchapter II 
of such chapter is amended by adding at the end the following 
new item: 
"2255. Aircraft accident investigation boards: composition requirements.". 
Applicability. 
(b) EFFECTIVE DATE.—Section 2255 of title 10, United States 
10 use 2255 
Code, as added by subsection (a), shall apply with respect to any 
^°^- 
aircraft accident investigation board convened by the Secretary 
of a military department after the end of the six-month period 
beginning on the date of the enactment of this Act. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2623 
SEC. 912. MISSION OF THE WHITE HOUSE COMMUNICATIONS AGENCY. 
10 USC 111 note. 
(a) TELECOMMUNICATIONS SUPPORT.—The Secretary of Defense 
shall ensure that the activities of the White House Communications 
Agency in providing support services on a nonreimbursable basis 
for the President from funds appropriated for the Department of 
Defense for any Hscal year are limited to the provision of tele-
communications support to the President and Vice President and 
to related elements (as defined in regulations of that agency and 
specified by the President with respect to particular individuals 
within those related elements). 
(b) OTHER SUPPORT.—Support services other than telecommuni-
cations support services described in subsection (a) may be provided 
by the Department of Defense for the President through the White 
House Communications Agency on a reimbursable basis. 
(c) WHITE HOUSE COMMUNICATIONS AGENCY.—For purposes of 
this section, the term **White House Communications Agency" 
means the element of the Department of Defense within the Defense 
Communications Agency that is known on the date of the enactment 
of this Act as the White House Communications Agency and 
includes any successor agency. 
(d) REPORT ON ISSUES RAISED BY D O D INSPECTOR GENERAL 
REVIEW OF WHITE HOUSE COMMUNICATIONS AGENCY.—^Not later 
than October 1, 1996, or 30 days after the date of the enactment 
of this Act, whichever is later, the Secretary of Defense shall submit 
to Congress a report setting forth the actions taken by the Secretary 
to address the issues raised by the report of the Depsirtment of 
Defense Inspector General reviewing the mission of the White 
House Communications Agency. 
(e) QUARTERLY REPORTS DURING FISCAL YEAR 1997.—^Not later 
than 30 days after the end of each quarter of fiscal year 1997, 
the Secretary of Defense shall submit to Congress a report describ-
ing the support services other than telecommunications support 
services described in subsection (a) that were provided during the 
preceding quarter by the Department of Defense for the President 
through the White House Communications Agency. 
(0 EFFECTIVE DATE.—^This section takes effect on October 1, Applicability. 
1997, and applies to funds appropriated for the Depsulment of 
Defense for any fiscal year after fiscal year 1997. 
Subtitle B—^Force Structure Review 
SEC 921. SHORT TITLE. 
This subtitle may be cited as the "Military Force Structure 
Review Act of 1996". 
SEC. 922. FINDINGS. 
Congress meikes the following findings: 
(1) Since the collapse of the Soviet Union in 1991, the 
United States has conducted two substantial assessments of 
the force structure of the Armed Forces necessary to meet 
United States defense requirements. 
(2) The assessment by the Bush Administration (known 
as the "Base Force" assessment) sind the assessment by the 
Clinton Administration (known as the "Bottom-Up Review") 
were intended to reassess the force structure of the Armed 
Military Force 
Structure Review 
Act of 1996. 
10 USC 111 note. 
110 STAT. 2624 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Forces in light of the changing realities of the post-Cold War 
world. 
(3) Both assessments served an important purpose in focus-
ing attention on the need to reevaluate the military posture 
of the United States, but the pace of global change necessitates 
a new, comprehensive assessment of the defense strategy of 
the United States and the force structure of the Armed Forces 
required to meet the threats to the United States in the twenty-
first century. 
(4) The Bottom-Up Review has been criticized on several 
points, including— 
(A) the assumptions underlying the strategy of plan-
ning to fight and win two nearly simultaneous major 
regional conflicts; 
(B) the force levels recommended to carry out that 
strategy; and 
(C) the funding proposed for such recommended force 
levels. 
(5) In response to the recommendations of the Commission 
on Roles £ind Missions of the Armed Forces, the Secretary 
of Defense endorsed the concept of conducting a quadrennial 
review of the defense program at the beginning of each newly 
elected Presidential 
administration, 
and the 
Department 
intends to complete the first such review in 1997. 
(6) The review is to involve a comprehensive examination 
of defense strategy, the force structure of the active, guard, 
and reserve components, force modernization plans, infrastruc-
ture, and other elements of the defense program and policies 
in order to determine and express the defense strategy of the 
United States and to establish a revised defense program 
through the year 2005. 
(7) In order to ensure that the force structure of the Armed 
Forces is adequate to meet the challenges to the national secu-
rity interests of the United States in the twenty-first century, 
to assist the Secretary of Defense in conducting the review 
referred to in paragraph (5), and to assess the appropriate 
force structure of the Armed Forces through the year 2010 
and beyond (if practicable), it is important to provide for the 
conduct of an independent, nonpartisan review of the force 
structure that is more comprehensive than prior assessments 
of the force structure, extends beyond the quadrennial defense 
review, and explores innovative and forward-thinking ways of 
meeting such challenges. 
SEC. 923. QUADRENNIAL DEFENSE REVIEW. 
(a) REQUIREMENT IN 1997.—^The Secretary of Defense, in con-
sultation with the Chairman of the Joint Chiefs of Staff, shall 
complete in 1997 a review of the defense program of the United 
States intended to satisfy the requirements for a Quadrennial 
Defense Review as identified in the recommendations of the 
Commission on Roles and Missions of the Armed Forces. The review 
shall include a comprehensive examination of the defense strategy, 
force structure, force modernization plans, infrastructure, budget 
plan, and other elements of the defense program and policies with 
a view toward determining and expressing the defense strategy 
of the United States and establishing a revised defense program 
through the year 2005. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2625 
(b) INVOLVEMENT OF NATIONAL DEFENSE PANEL.—(1) The Sec-
retary shall apprise the National Defense Panel established under 
section 924, on an ongoing basis, of the work undertaken in the 
conduct of the review. 
(2) Not later than March 14, 1997, the Chairman of the National 
Defense Panel shall submit to the Secretary the Panel's assessment 
of work undertaken in the conduct of the review as of that date 
and shall include in the assessment the recommendations of the 
Panel for improvements to the review, including recommendations 
for additional matters to be covered in the review. 
(c) ASSESSMENTS OF REVIEW.—^Upon completion of the review, 
the Chairman of the Joint Chiefs of Staff and the Chairman of 
the National Defense Panel, on behalf of the Panel, shall each 
prepare and submit to the Secretary such Chairman's assessment 
of the review in time for the inclusion of the assessment in its 
entirety in the report under subsection (d). 
(d) REPORT.—^Not later than May 15, 1997, the Secretary shall 
submit to the Committee on Armed Services of the Senate and 
the Committee on National Security of the House of Representatives 
a comprehensive report on the review. The report shall include 
the following: 
(1) The results of the review, including a comprehensive 
discussion of the defense strategy of the United States and 
the force structure best suited to implement that strategy. 
(2) The threats examined for purposes of the review and 
the scenarios developed in the examination of such threats. 
(3) The assumptions used in the review, including assump-
tions relating to the cooperation of allies and mission-sharing, 
levels of acceptable risk, warning times, and intensity and 
duration of conflict. 
(4) The effect on the force structure of preparations for 
and participation in peace operations and military operations 
other than war. 
(5) The effect on the force structure of the utilization by 
the Armed Forces of technologies anticipated to be available 
by the year 2005, including precision guided munitions, stealth, 
night vision, digitization, and communications, smd the changes 
in doctrine and operational concepts that would result from 
the utilization of such technologies. 
(6) The manpower and sustainment policies required under 
the defense strategy to support engagement in conflicts lasting 
more than 120 days. 
(7) The anticipated roles and missions of the reserve compo-
nents in the defense strategy and the strength, capabilities, 
and equipment necessary to assure that the reserve components 
can capably discharge those roles and missions. 
(8) The appropriate ratio of combat forces to support forces 
(commonly referred to as the "tooth-to-tail" ratio) under the 
defense strategy, including, in particular, the appropriate num-
ber and size of headquarter units and Defense Agencies for 
that purpose. 
(9) The air-lift and sea-lift capabilities required to support 
the defense strategy. 
(10) The forward presence, pre-positioning, and other 
anticipatory deplojonents necessary under the defense strategy 
for conflict deterrence and adequate military response to antici-
pated conflicts. 
110 STAT. 2626 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(11) The extent to which resources must be shifted among 
two or more theaters under the defense strategy in the event 
of conflict in such theaters. 
(12) The advisabihty of revisions to the Unified Command 
Plan as a result of the defense strategy. 
(13) Any other matter the Secretary considers appropriate. 
SEC. 
924. 
NATIONAL 
DEFENSE 
PANEL. 
(a) ESTABLISHMENT.—Not later than December 1, 1996, the 
Secretary of Defense shall establish a nonpartisan, independent 
panel to be known as the National Defense Panel (in this section 
referred to as the "Panel")- The Panel shall have the duties set 
forth in this section. 
(b) MEMBERSHIP.—^The Panel shall be composed of a chairman 
and eight other individuals appointed by the Secretary, in consulta-
tion with the chairman and ranking member of the Committee 
on Armed Services of the Senate and the chairman and ranking 
member of the Committee on National Security of the House of 
Representatives, from among individuals in the private sector who 
are recognized experts in matters relating to the national security 
of the United States. 
(c) DUTIES.—^The Panel shall— 
(1) conduct and submit to the Secretary the assessment 
of the review under section 923 that is required by subsection 
(b)(2) of that section; 
(2) conduct and submit to the Secretary the comprehensive 
assessment of the review that is required by subsection (c) 
of that section upon completion of the review; and 
(3) conduct the assessment of alternative force structures 
for the Armed Forces required under subsection (d). 
(d) 
ALTERNATIVE FORCE STRUCTURE ASSESSMENT.—(1) 
The 
Panel shall submit to the Secretary an independent assessment 
of a variety of possible force structures of the Armed Forces through 
the year 2010 and beyond, including the force structure identified 
in the report on the review under section 923(d). The purpose 
of the assessment is to develop proposals for an "above the line" 
force structure of the Armed Forces and to provide the Secretary 
and Congress recommendations regarding the optimal force struc-
ture to meet anticipated threats to the national security of the 
United States through the time covered by the assessment. 
(2) In conducting the assessment, the Panel shall examine 
a variety of potential threats (including near-term threats and 
long-term threats) to the national security interests of the United 
States, including the following: 
(A) Conventional threats across a spectrum of conflicts. 
(B) The proliferation of weapons of mass destruction and 
the means of delivering such weapons, and the illicit transfer 
of technology relating to such weapons. 
(C) The vulnerability of United States technology to non-
traditional threats, including information warfare. 
(D) Domestic and international terrorism. 
(E) The emergence of a major potential adversary having 
military capabilities similar to those of the United States. 
(F) Any other significant threat, or combination of threats, 
identified by the Panel. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2627 
(3) For purposes of the assessment, the Panel shall develop 
a variety of scenarios requiring a military response by the United 
States, including the following: 
(A) Scenarios developed in light of the threats examined 
under paragraph (2). 
(B) Scenarios developed in light of a continuum of conflicts 
ranging from a conflict of lesser magnitude than the conflict 
described in the Bottom-Up Review to a conflict of greater 
magnitude than the conflict so described. 
(4) As part of the assessment, the Panel shall also— 
(A) develop recommendations regarding a variety of force 
structures for the Armed Forces that permit the forward deploy-
ment of sufficient air, land, and sea-based forces to provide 
an effective deterrent to conflict and to permit a military 
response by the United States to the scenarios developed under 
paragraph (3); 
(B) to the extent practicable, estimate the funding required 
by fiscal year, in constant fiscal year 1997 dollars, to organize, 
equip, and support the forces contemplated under the force 
structures assessed in the assessment; and 
(C) comment on each of the matters also to be included 
by the Secretary in the report required by section 923(d). 
(e) REPORT.—(1) Not later than December 1, 1997, the Panel 
shall submit to the Secretary a report setting forth the activities 
and the findings and recommendations of the Panel under sub-
section (d), including any recommendations for legislation that the 
Panel considers appropriate. 
(2) Not later than December 15, 1997, the Secretary shall, 
after consultation with the Chairman of the Joint Chiefs of Staff, 
submit to the committees referred to in subsection (b) a copy of 
the report under paragraph (1), together with the Secretary's com-
ments on the report. 
(f) INFORMATION FROM FEDERAL AGENCIES.—^The Panel may 
secure directly from the Department of Defense and any of its 
components and from any other Federal department and agency 
such information as the Panel considers necessary to carry out 
its duties under this section. The head of the department or agency 
concerned shall ensure that information requested by the Panel 
under this subsection is promptly provided. 
(g) PERSONNEL MATTERS.—(1) Each member of the Panel shall 
be compensated at a rate equal to the daily equivalent of the 
annual rate of basic pay prescribed for level IV of the Executive 
Schedule under section 5315 of title 5, United States Code, for 
each day (including travel time) during which such member is 
engaged in the performance of the duties of the Panel. 
(2) The members of the Panel shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 
5, United States Code, while away from their homes or regular 
places of business in the performance of services for the Panel. 
(3)(A) The chairman of the Panel may, without regard to the 
civil service laws and regulations, appoint and terminate an execu-
tive director, and a staff of not more than four additional individ-
uals, if the Panel determines that an executive director and staff 
are necessary in order for the Panel to perform its duties effectively. 
The employment of an executive director shall be subject to con-
firmation by the Panel. 
29-194 O - 96 - 29 : QL 3 Part 3 
110 STAT. 2628 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(B) The chairman may fix the compensation of the executive 
director without regard to the provisions of chapter 51 and sub-
chapter III of chapter 53 of title 5, United States Code, relating 
to classification of positions and General Schedule pay rates, except 
that the rate of pay for the executive director may not exceed 
the rate payable for level V of the Executive Schedule under section 
5316 of such title. 
(4) Any Federal Government employee may be detailed to the 
Panel without reimbursement, and such detail shall be without 
interruption or loss of civil service status or privilege. The Secretary 
shall ensure that sufficient personnel are detailed to the Panel 
to enable the Panel to carry out its duties effectively. 
(5) To the maximum extent practicable, the members and 
employees of the Panel shall travel on military aircraft, military 
ships, military vehicles, or other military conveyances when travel 
is necessary in the performance of a duty of the Panel, except 
that no such aircraft, ship, vehicle, or other conveyance may be 
scheduled primarily for the transportation of any such member 
or employee when the cost of commercial transportation is less 
expensive. 
(h) ADMINISTRATIVE PROVISIONS.—(1) The Panel may use the 
United States mails and obtain printing and binding services in 
the same manner and under the same conditions as other depart-
ments and agencies of the Federal Government. 
(2) The Secretary shall furnish the Panel any administrative 
and support services requested by the Panel. 
(3) The Panel may accept, use, and dispose of gifts or donations 
of services or property. 
(i) PAYMENT OF PANEL EXPENSES.—^The compensation, travel 
expenses, and per diem allowances of members and employees 
of the Panel shall be paid out of funds available to the Department 
of Defense for the pa3anent of compensation, travel allowances, 
and per diem allowances, respectively, of civilian employees of the 
Department. The other expenses of the Panel shall be paid out 
of funds available to the Department for the pa3mient of similar 
expenses incurred by the Department. 
0) TERMINATION.—^The Panel shall terminate 30 days after 
the date on which the Panel submits its report to the Secretary 
under subsection (e). 
SEC. 925. POSTPONEMENT OF DEADLINES. 
If the Presidential election in 1996 results in the election of 
a new President, each deadline set forth in this subtitle shall 
be postponed by three months. 
SEC. 926. DEFINITIONS. 
In this subtitle: 
(1) The term " 'above the line' force structure of the Armed 
Forces" means 
the 
force 
structure 
(including 
numbers, 
strengths, and composition and major items of equipment) for 
the Armed Forces at the following unit levels: 
(A) In the case of the Army, the division. 
(B) In the case of the Navy, the battle group. 
(C) In the case of the Air Force, the wing. 
(D) In the case of the Marine Corps, the expeditionary 
force. 
(E) In the case of special operations forces of the Army, 
Navy, or Air Force, the major operating unit. 
PUBLIC LAW 104-201-SEPT. 23, 1996 
110 STAT. 2629 
(F) In the case of the strategic forces, the ballistic 
missile submarine fleet, the heavy bomber force, and the 
intercontinental ballistic missile force. 
(2) The term "Commission on Roles and Missions of the 
Armed Forces" means the Commission on Roles and Missions 
of the Armed Forces established by subtitle E of title IX of 
the National Defense Authorization Act for Fiscal Year 1994 
(Public Law 103-160; 107 Stat. 1738; 10 U.S.C. I l l note). 
(3) The term "military operation other than war" means 
any operation other than war that requires the utilization 
of the military capabilities of the Armed Forces, including peace 
operations, humanitarian assistance operations and activities, 
counter-terrorism operations and activities, disaster relief 
activities, and counter-drug operations and activities. 
(4) The term "peace operations" means military operations 
in support of diplomatic efforts to reach long-term political 
settlements of conflicts and includes peacekeeping operations 
and peace enforcement operations. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
Sec. 1001. Transfer authority. 
Sec. 1002. Incorporation of classified annex. 
Sec. 1003. Authority for obligation of certain unauthorized fiscal year 1996 defense 
appropriations. 
Sec. 1004. Authorization of prior emergency supplemental appropriations for fiscal 
year 1996. 
Sec. 1005. Format for budget requests for Navy/Marine Corps and Air Force ammu-
nition accounts. 
Sec. 1006. Format for annual budget requests for Defense Airborne Reconnaissance 
Program. 
Sec. 1007. Limitation on use of Department of Defense funds transferred to the 
Coast Guard. 
Sec. 1008. Fisher House Trust Fund for the Department of the Navy. 
Sec. 1009. Designation and liability of disbursing and certifying officiads for the 
Coast Guard. 
Sec. 1010. Authority to suspend or terminate collection actions against deceased 
members of the Coast Guard. 
Sec. 1011. Department of Defense disbursing official check cashing and exchange 
transactions. 
Subtitle B—Naval Vessels and Shipyards 
Sec. 1021. Repeal of requirement for continuous applicability of contracts for 
phased maintenance of AE class ships. 
Sec. 1022. Funding for second and third maritime prepositioning ships out of 
National Defense Sealift Fund. 
Sec. 1023. Transfer of certain obsolete tugboats of the Navy. 
Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California. 
Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102). 
Subtitle C—Counter-Drug Activities 
Sec. 1031. Authority to provide additional support for counter-drug activities of 
Mexico. 
Sec. 1032. Availability of funds for certain drug interdiction and counter-drug 
activities. 
Sec. 1033. Transfer of excess personal property to support law enforcement 
activities. 
Sec. 1034. Sale by Federal departments or agencies of chemicals used to manufac-
ture controlled substances. 
Subtitle D—Reports and Studies 
Sec. 1041. Annual report on Operation Provide Comfort and Operation Enhanced 
Southern Watch. 
110 STAT. 2630 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Sec. 1042. Annual report on emerging operational concepts. 
Sec. 1043. Report on Department of Defense military child care programs. 
Sec. 1044. Report on Department of Defense military youth pro-ams. 
Sec. 1045. Qu£irterly reports regarding coproduction agreements. 
Sec. 1046. Report on witness interview procedures for Department of Defense 
criminal investigations. 
Sec. 1047. Report on military readiness requirements of the Armed Forces. 
Sec. 1048. Report on NATO enlargement. 
Subtitle E—^Management of Armed Forces Retirement Home 
Sec. 1051. Retirement Home Boards of Directors. 
Sec. 1052. Acceptance of uncompensated services. 
Sec. 1053. Disposal of tract of real property in the District of Columbia. 
Subtitle F—Other Matters 
Sec. 1061. Policy on protection of national information infrastructure against 
strategic attack. 
Sec. 1062. Information systems security program. 
Sec. 1063. Authority to accept services from foreign governments and international 
organizations for defense purposes. 
Sec. 1064. Prohibition on collection and release of detailed satellite imagery 
relating to Israel. 
Sec. 1065. George C. Marshall European Center for Strategic Security Studies. 
Sec. 1066. Authority to award to civilian participants in the defense of Pearl 
Harbor the Congressional Medal previously authorized only for 
military participants in the defense of Pearl Harbor. 
Sec. 1067. Assimilative crimes authority for traffic offenses on military installa-
tions. 
Sec. 1068. Uniform Code of Military Justice amendments. 
Sec. 1069. Punishment of interstate stalking. 
Sec. 1070. Participation of members, dependents, and other persons in crime 
prevention efforts at installations. 
Sec. 1071. Display of State flags at installations and facilities of the Department 
of Defense. 
Sec. 1072. Treatment of excess operational support airlift aircraft. 
Sec. 1073. Correction to statutory references to certain Department of Defense 
organizations. 
Sec. 1074. Technical and clerical amendments. 
Sec. 1075. Modification to third-party liability to United States for tortious inflic-
tion of imury or disease on members of the uniformed services. 
Sec. 1076. Chemical Stockpile Emergency Preparedness Program. 
Sec. 1077. Exemption from requirements applicable to savings associations for 
certain savings institutions serving military personnel. 
Sec. 1078. Improvements to National Security Education Program. 
Sec. 1079. Aviation and vessel war risk insurance. 
Sec. 1080. Designation of memorial as National D-Day Memorial. 
Sec. 1081. Sense of Congress regarding semiconductor trade agreement between 
United States and Japan. 
Sec. 1082. Agreements for exchange of defense personnel between the United 
States and foreign countries. 
Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina. 
Sec. 1084. Defense burdensharing. 
Subtitle A—Financial Matters 
SEC. 1001. TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—(1) Upon deter-
mination by the Secretary of Defense that such action is necessary 
in the national interest, the Secretary may transfer amounts of 
authorizations made available to the Department of Defense in 
this division for fiscal year 1997 between any such authorizations 
for that fiscal year (or any subdivisions thereof). Amounts of 
authorizations so transferred shall be merged with and be available 
for the same purposes as the authorization to which transferred. 
(2) The total amount of authorizations that the Secretary of 
Defense may transfer under the authority of this section may not 
exceed $2,000,000,000. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2631 
(b) LIMITATIONS.—^The authority provided by this section to 
transfer authorizations— 
(1) may only be used to provide authority for items that 
have a higher priority than the items from which authority 
is transferred; and 
(2) may not be used to provide authority for an item that 
has been denied authorization by Congress. 
(c) EFFECT ON AUTHORIZATION AMOUNTS.—^A transfer made 
from one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the account 
to which the amount is transferred by an amount equal to the 
amount transferred. 
(d) NOTICE TO CONGRESS.—The Secretary shall promptly notify 
Congress of each transfer made under subsection (a). 
SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX. 
10 USC 114 note. 
(a) STATUS OF CLASSIFIED ANNEX.—The Classified Annex pre-
pared by the committee of conference to accompany the conference 
report on the bill H.R. 3230 of the One Hundred Fourth Congress 
and transmitted to the President is hereby incorporated into this 
Act. 
(b) CONSTRUCTION WITH OTHER PROVISIONS OF ACT.—^The 
amounts specified in the Classified Annex are not in addition to 
amounts authorized to be appropriated by other provisions of this 
Act. 
(c) LIMITATION ON USE OF FUNDS.—Funds appropriated pursu-
ant to an authorization contained in this Act that are made avail-
able for a program, project, or activity referred to in the Classified 
Annex may only be expended for such program, project, or activity 
in accordance with such terms, conditions, limitations, restrictions, 
and requirements as are set out for that program, project, or activity 
in the Classified Annex. 
(d) DISTRIBUTION OF CLASSIFIED ANNEX.—^The President shall President, 
provide for appropriate distribution of the Classified Annex, or 
of appropriate portions of the annex, within the executive branch 
of the Government. 
SEC. 1003. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED 
FISCAL YEAR 1996 DEFENSE APPROPRIATIONS. 
(a) AUTHORITY.—The amounts described in subsection (b) may 
be obligated and expended for programs, projects, and activities 
of the Department of Defense in accordance with fiscal year 1996 
defense appropriations. 
(b) COVERED AMOUNTS.—^The amounts referred to in subsection 
(a) are the amounts provided for programs, projects, and activities 
of the Department of Defense in fiscal year 1996 defense appropria-
tions that are in excess of the amounts provided for such programs, 
projects, and activities in fiscal year 1996 defense authorizations. 
(c) DEFINITIONS.—For the purposes of this section: 
(1) FISCAL YEAR 1996 DEFENSE APPROPRIATIONS.—The term 
"fiscal year 1996 defense appropriations" means amounts appro-
priated or otherwise made available to the Department of 
Defense for fiscal year 1996 in the Department of Defense 
Appropriations Act, 1996 (PubUc Law 104-61). 
(2) FISCAL YEAR 1996 DEFENSE AUTHORIZATIONS.—^The term 
"fiscal year 1996 defense authorizations" means amounts 
authorized to be appropriated for the Department of Defense 
110 STAT. 2632 
PUBLIC LAW 104-201—SEPT. 23, 1996 
for fiscal year 1996 in the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106). 
SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL 
APPROPRIATIONS FOR FISCAL YEAR 1996. 
Amounts authorized to be appropriated to the Department of 
Defense for fiscal year 1996 in the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106) are hereby adjusted, 
with respect to any such authorized amount, by the amount by 
which appropriations pursuant to such authorization were increased 
(by a supplemental appropriation) or decreased (by a rescission), 
or both, in the Omnibus Consolidated Rescissions and Appropria-
tions Act of 1996 (Public Law 104-134). 
SEC. 1005. FORMAT FOR BUDGET REQUESTS FOR NAVY/MARINE 
CORPS AND AIR FORCE AMMUNITION ACCOUNTS. 
Section 114 of title 10, United States Code, is amended by 
adding at the end the following new subsection: 
"(f) In each budget submitted by the President to Congress 
under section 1105 of title 31, amounts requested for procurement 
of ammunition for the Navy and Marine Corps, and for procurement 
of ammunition for the Air Force, shall be set forth separately 
from other amounts requested for procurement.". 
SEC. 1006. FORMAT FOR ANNUAL BUDGET REQUESTS FOR DEFENSE 
AIRBORNE RECONNAISSANCE PROGRAM. 
(a) SEPARATE DISPLAY REQUIRED.—^The Secretary of Defense 
shall ensure that in the budget justification documents for any 
fiscal year there are set forth separately the amount requested 
for research, development, test, and evaluation, and the amount 
requested for procurement, for each program area within the 
Defense Airborne Reconnaissance Program. 
(b) PROGRAM AREAS WITHIN DEFENSE AIRBORNE RECONNAIS-
SANCE PROGRAM.—For purposes of subsection (a), the programs 
of the Defense Airborne Reconnaissance Program shall be cat-
egorized as being within one of the following areas: 
(1) Tactical unmanned aerial vehicles. 
(2) Endurance unmanned aerial vehicles. 
(3) Airborne reconnaissance systems. 
(4) Manned reconnaissance systems. 
(5) Distributed common ground systems. 
(6) Any additional program area established by the 
Secretary of Defense. 
(c) BUDGET JUSTIFICATION DOCUMENTS.—For purposes of sub-
section (a), the term "budget justification documents" means the 
supporting budget documentation submitted to the congressional 
defense committees in support of the budget of the Department 
of Defense for a fiscal year as included in the budget of the President 
submitted under section 1105 of title 31, United States Code, for 
that fiscal year. 
SEC. 1007. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS 
TRANSFERRED TO THE COAST GUARD. 
(a) 
LIMITATION TO NATIONAL SECURITY FUNCTIONS.—Funds 
appropriated to the Department of Defense for fiscal year 1997 
that are transferred pursuant to law to the Coast Guard may 
be used only for the performance of national security functions 
of the Coast Guard in support of the Department of Defense. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2633 
(b) CERTIFICATION 
REQUIRED.—Funds appropriated to the 
Department of Defense for fiscal year 1997 may not be transferred 
to the Coast Guard until the Secretary of Defense and the Secretary 
of Transportation jointly certify to Congress that the funds so 
transferred will be used only in accordance with the limitation 
in subsection (a). 
(c) PERIODIC GAG AUDITS.—The Comptroller General of the 
United States shall— 
(1) audit, from time to time, the use of funds transferred 
to the Coast Guard from appropriations for the Department 
of Defense for fiscal year 1997 in order to verify that those 
funds are being used in accordance with the limitation in 
subsection (a); and 
(2) notify the congressional defense committees of any use 
Notification. 
of those funds that, in the judgment of the Comptroller General, 
is a violation of that limitation. 
SEC. 1008. FISHER HOUSE TRUST FUND FOR THE DEPARTMENT OF 
THE NAVY. 
(a) AUTHORITY.—Section 2221 of title 10, United States Code, 
is amended— 
(1) by adding at the end of subsection (a) the following: 
"(3) The Fisher House Trust Fund, Department of the 
Navy."; 
(2) in subsection (c)— 
(A) by redesignating paragraph (3) as paragraph 
(4); and 
(B) by inserting after paragraph (2) the following new 
paragraph (3): 
"(3) Amounts in the Fisher House Trust Fund, Department 
of the Navy, that are attributable to earnings or gains realized 
from investments shsill be available for the operation and mainte-
nance of Fisher houses that are located in proximity to medical 
treatment facilities of the Navy."; and 
(3) in subsection (d)(1), by striking out "or the Air Force" 
and inserting in lieu thereof ", the Air Force, or the Navy". 
(b) CORPUS OF TRUST FUNDS.—^The Secretary of the Navy shall 
lo use 2221 
transfer to the Fisher House Trust Fund, Department of the Naw, i^ote. 
established by section 2221(a)(3) of title 10, United States Code 
(as added by subsection (a)(1)), all amounts in the accounts for 
Navy installations and other facilities that, as of the date of the 
enactment of this Act, are available for operation and maintenance 
of Fisher houses, as defined in section 2221(d) of such title. 
(c) CONFORMING AMENDMENTS.—Section 1321 of title 31, United 
States Code, is amended— 
(1) by adding at the end of subsection (a) the following: 
"(94) Fisher House Trust Fund, Department of the 
Navy."; and 
(2) by adding at the end of subsection (bX2) the following: 
"(D) Fisher House Trust Fund, Department of the Navy.". 
SEC. 1009. DESIGNATION AND 
LIABILITY OF 
DISBURSING 
AND 
CERTIFYING OFFICIALS FOR THE COAST GUARD. 
(a) DISBURSING OFFICIALS.—(1) Section 3321(c) of title 31, 
United States Code, is amended by adding at the end the following: 
"(3) The Department of Transportation (with respect to 
public money available for expenditure by the Coast Guard 
when it is not operating as a service in the Navy).". 
110 STAT. 2634 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(2)(A) Chapter 17 of title 14, United States Code, is amended 
by adding at the end the following new section: 
'^§673. Designation, powers, and accountability of deputy 
disbursing officials 
"(a)(1) Subject to paragraph (3), a disbursing official of the 
Coast Guard may designate a deputy disbursing official— 
"(A) to make pa3mients as the agent of the disbursing 
official; 
"(B) to sign checks drawn on disbursing accounts of the 
Secretary of the Treasury; and 
"(C) to carry out other duties required under law. 
"(2) The penalties for misconduct that apply to a disbursing 
official apply to a deputy disbursing official designated under this 
subsection. 
"(3) A disbursing official may make a designation under para-
graph (1) only with the approval of the Secretary of Transportation 
(when the Coast Guard is not operating as a service in the Navy). 
"(b)(1) If a disbursing officiaJ of the Coast Guard dies, becomes 
disabled, or is separated from office, a deputy disbursing official 
may continue the accounts and payments in the name of the former 
disbursing official until the last day of the second month aft;er 
the month in which the death, disability, or separation occurs. 
The accounts and payments shall be allowed, audited, and settled 
as provided by law. The Secretary of the Treasury shall honor 
checks signed in the name of the former disbursing officigd in 
the same way as if the former disbursing official had continued 
in office. 
"(2) The deputy disbursing official, and not the former disburs-
ing official or the estate of the former disbursing official, is liable 
for the actions of the deputy disbursing official under this sub-
section. 
"(c)(1) Except as provided in paragraph (2), this section does 
not apply to the Coast Guard when section 2773 of title 10 applies 
to the Coast Gusird by reason of the operation of the Coast Guard 
as a service in the Navy. 
"(2) A designation of a deputy disbursing official under sub-
section (a) that is made while the Coast Guard is not operating 
as a service in the Navy continues in effect for purposes of section 
2773 of title 10 while the Coast Guard operates as a service in 
the Navy unless and until the designation is terminated by the 
disbursing official who made the designation or an official author-
ized to approve such a designation under subsection (a)(3) of such 
section.". 
(B) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"673. Designation, powers, and accountability of deputy disbursing officials.". 
(b) DESIGNATION OF MEMBERS OF THE ARMED FORCES TO HAVE 
AUTHORITY TO CERTIFY VOUCHERS.—Section 3325(b) of title 31, 
United States Code, is amended by striking out "members of the 
armed forces under the jurisdiction of the Secretary of Defense 
may certify vouchers when authorized, in writing, by the Secretary 
to do so" and inserting in lieu thereof "members of the armed 
forces may certify vouchers when authorized, in writing, by the 
Secretary of Defense or, in the case of the Coast Guard when 
it is not operating as a service in the Navy, by the Secretary 
of Transportation". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2635 
(c) CONFORMING AMENDMENTS.—(1) Section 1007(a) of title 37, 
United States Code, is amended by inserting after "Secretary of 
Defense" the following: "(or the Secretary of Transportation, in 
the case of an officer of the Coast Guard when the Coast Guard 
is not operating as a service in the Navy)". 
(2) Section 3527(b)(1) of title 31, United States Code, is 
amended— 
(A) in subparagraph (A)(i), by inserting after "Department 
of Defense" the following: "(or the Secretary of Transportation, 
in the case of a disbursing official of the Coast Guard when 
the Coast Guard is not operating as a service in the Navy)"; 
and 
(B) in subparagraph (B), by inserting after "or the Secretary 
of the appropriate military department" the following: "(or the 
Secretary of Transportation, in the case of a disbursing official 
of the Coast Guard when the Coast Guard is not operating 
as a service in the Navy)". 
SEC. 1010. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION 
ACTIONS AGAINST DECEASED MEMBERS OF THE COAST 
GUARD. 
Section 3711(g) of title 31, United States Code, is amended— 
(1) in paragraph (1), by striking out "or Marine Corps" 
and inserting in lieu thereof "Marine Corps, or Coast Guard 
during a period when the Coast Guard is operating as a service 
in the Navy"; 
(2) by redesignating paragraph (2) as paragraph (3); and 
(3) by inserting after paragraph (1) the following new 
paragraph (2): 
"(2) The Secretary of Transportation may suspend or terminate 
an action by the Secretary under subsection (a) to collect a claim 
against the estate of a person who died while serving on active 
duty as a member of the Coast Guard if the Secretary determines 
that, under the circumstances applicable with respect to the 
deceased person, it is appropriate to do so.". 
SEC. 1011. DEPARTMENT OF DEFENSE DISBURSING OFFICIAL CHECK 
CASHING AND EXCHANGE TRANSACTIONS. 
Section 3342(b) of title 31, United States Code, is amended— 
(1) by striking out the period at the end of paragraph 
(3) and inserting in lieu thereof a semicolon; 
(2) by striking out "and" at the end of paragraph (5); 
(3) by striking out the period at the end of paragraph 
(6) and inserting in lieu thereof "; or"; and 
(4) by adding at the end the following new paragraph: 
"(7) a Federal credit union (as defined in section 101(1) 
of the Federal Credit Union Act (12 U.S.C. 1752(1)) that at 
the request of the Secretary of Defense is operating on a United 
States military installation in a foreign country, but only if 
that country does not permit contractor-operated military bank-
ing facilities to operate on such installations.". 
110 STAT. 2636 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Subtitle B—Naval Vessels and Shipyards 
SEC. 1021. REPEAL OF REQUIREMENT FOR CONTINUOUS APPLICABIL-
ITY OF CONTRACTS FOR PHASED MAINTENANCE OF AE 
CLASS SHIPS. 
Section 1016 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 425) is repealed. 
SEC. 1022. FUNDING 
FOR 
SECOND 
AND 
THIRD 
MARITIME 
PREPOSrriONING SHIPS OUT OF NATIONAL DEFENSE SEA-
LIFT FUND. 
(a) NATIONAL DEFENSE SEALIFT FUND.—^To the extent provided 
in appropriations Acts, funds in the National Defense Sealift Fund 
may be obligated and expended for the purchase and conversion, 
or construction, of a total of three ships for the purpose of enhancing 
Marine Corps prepositioning ship squadrons. 
(b) 
AUTHORIZATION 
OF APPROPRIATIONS.—Of the amount 
authorized to be appropriated under section 302(2), $240,000,000 
is authorized to be appropriated for the purpose stated in subsection 
(a). 
Wisconsin. 
SEC. 1023. TRANSFER OF CERTAIN OBSOLETE TUGBOATS OF THE 
NAVY. 
(a) REQUIREMENT TO TRANSFER VESSELS.—^The Secretary of 
the Navy shall transfer the six obsolete tugboats of the Navy 
specified in subsection (b) to the Northeast Wisconsin • Railroad 
Transportation Commission, an instrumentality of the State of 
Wisconsin, if the Secretary determines that the tugboats are not 
needed for transfer, donation, or other disposal under title II of 
the Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 481 et seq.). 
(b) VESSELS COVERED.—The requirement in subsection (a) 
applies to the six decommissioned Cherokee class tugboats, listed 
as of the date of the enactment of this Act as being surplus to 
the Navy, that are designated as ATF-105, ATF-110, ATF-149, 
ATF-158, ATF-159, and ATF-160. 
(c) CONDITION RELATING TO ENVIRONMENTAL COMPLIANCE.— 
The Secretary shall require as a condition of the transfer of a 
vessel under subsection (a) that use of the vessel by the Commission 
not commence until the terms of any necessary environmental 
compliance letter or agreement with respect to that vessel have 
been complied with. 
(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions (including a require-
ment that the transfer be at no cost to the Government) in connec-
tion with the transfers required by subsection (a) as the Secretary 
considers appropriate. 
SEC. 1024. TRANSFER 
OF U.S.S. 
DRUM TO CITY OF VALLEJO, 
CALIFORNIA. 
(a) TRANSFER.—^The Secretary of the Navy shall transfer the 
U.S.S. Drum (SSN-677) to the city of Vallejo, California, in accord-
ance with this section and upon satisfactory completion of a ship 
donation application. Before making such transfer, the Secretary 
of the Navy shall remove from the vessel the reactor compartment 
and other classified and sensitive military equipment. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2637 
(b) FUNDING.—As provided in section 7306(c) of title 10, United 
States Code, the transfer of the vessel authorized by this section 
shall be made at no cost to the United States (beyond the cost 
which the United States would otherwise incur for dismantling 
and recycling of the vessel). 
(c) APPLICABLE LAW.—^The transfer under this section shall 
be subject to subsection (b) of section 7306 of title 10, United 
States Code, but the provisions of subsection (d) of such section 
shall not be applicable to such transfer. 
SEC. 1025. SENSE OF CONGRESS CONCERNING USS LCS 102 (LSSL 102). 
It is the sense of Congress that the Secretary of Defense should 
use existing authorities in law to seek the expeditious return, 
upon completion of service, of the former USS LCS 102 (LSSL 
102) from the Government of Thailand in order for the ship to 
be transferred to the United States Shipbuilding Museum in Quincy, 
Massachusetts. 
Subtitle C—Counter-Drug Activities 
SEC. 1031. AUTHORITY TO PROVIDE ADDITIONAL 
SUPPORT FOR 
COUNTER-DRUG ACTIVITIES OF MEXICO. 
(a) AUTHORITY TO PROVIDE ADDITIONAL SUPPORT.—Subject to 
subsection (e), during fiscal year 1997, the Secretary of Defense 
may provide the Government of Mexico with the support described 
in subsection (b) for the counter-drug activities of the Government 
of Mexico. The support provided under the authority of this sub-
section shall be in addition to support provided to the Government 
of Mexico under any other provision of law. 
(b) TYPES OF SUPPORT.—^The authority under subsection (a) 
is limited to the provision of the following types of support: 
(1) The transfer of nonlethal protective and utility per-
sonnel equipment. 
(2) The transfer of the following nonlethal specialized 
equipment: 
(A) Navigation equipment. 
(B) Secure and nonsecure communications equipment. 
(C) Photo equipment. 
(D) Radar equipment. 
(E) Night vision systems. 
(F) Repair equipment and parts for equipment referred 
to in subparagraphs (A), (B), (C), (D), and (E). 
(3) The transfer of nonlethal components, accessories, 
attachments, parts (including ground support equipment), 
firmware, and software for aircraft or patrol boats, and related 
repair equipment. 
(4) The maintenance and repair of equipment of the 
Government of Mexico that is used for counter-drug activities. 
(c) APPLICABILITY OF OTHER SUPPORT AUTHORITIES.—Except 
as otherwise provided in this section, the provisions of section 
1004 of the National Defense Authorization Act for Fiscal Year 
1991 (Public Law 101-510; 10 U.S.C. 374 note) shall apply to 
the provision of support under this section. 
(d) FUNDING.—Of the amount authorized to be appropriated 
under section 301(19) for drug interdiction and counter-drug activi-
110 STAT. 2638 
PUBLIC LAW 104-201—SEPT. 23, 1996 
ties, not more than $8,000,000 shall be available for the provision 
of support under this section. 
Certification. 
(e) LIMITATIONS.—(1) The Secretary may not obligate or expend 
funds to provide support under this section until 15 days after 
the date on which the Secretary submits to the committees referred 
to in paragraph (3) the certification described in paragraph (2). 
(2) The certification referred to in paragraph (1) is a written 
certification of the following: 
(A) That the provision of support under this section will 
not adversely affect the military preparedness of the United 
States Armed Forces. 
(B) That the equipment and materiel provided as support 
will be used only by officials and employees of the Government 
of Mexico who have undergone a background check by that 
government. 
(C) That the Government of Mexico has certified to the 
Secretary that— 
(i) the equipment and material provided as support 
will be used only by the officials and employees referred 
to in subparagraph (B); 
(ii) none of the equipment or materiel will be trans-
ferred (by sale, gift, or otherwise) to any person or entity 
not authorized by the United States to receive the equip-
ment or materiel; and 
(iii) the equipment and materiel will be used only 
for the purposes intended by the United States Govern-
ment. 
(D) That the Government of Mexico has implemented, to 
the satisfaction of the Secretary, a system that will provide 
an accounting and inventory of the equipment and materiel 
provided as support. 
(E) That the departments, agencies, and instrumentalities 
of the Government of Mexico will grant United States Govern-
ment personnel access to any of the equipment or materiel 
provided as support, or to any of the records relating to such 
equipment or materiel, under terms and conditions similar 
to the terms and conditions imposed with respect to such access 
under section 505(a)(3) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2314(a)(3)). 
(F) That the Government of Mexico will provide security 
with respect to the equipment and materiel provided as support 
that is substantially the same degree of security that the United 
States Government would provide with respect to such equip-
ment and materiel. 
(G) That the Government of Mexico will permit continuous 
observation and review by United States Government personnel 
of the use of the equipment and materiel provided as support 
under terms and conditions similar to the terms and conditions 
imposed with respect to such observation and review under 
section 505(a)(3) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2314(a)(3)). 
(3) The committees referred to in this paragraph are the 
following: 
(A) The Committee on Armed Services and the Committee 
on Foreign Relations of the Senate. 
(B) The Committee on National Security and the Commit-
tee on International Relations of the House of Representatives. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2639 
SEC. 1032. AVAILABILITY OF FUNDS FOR CERTAIN DRUG INTERDIC-
TION AND COUNTER-DRUG ACTIVITIES. 
(a) P-3B AIRCRAFT.—Of the funds authorized to be appropriated 
under section 301(19) for drug interdiction £ind counter-drug activi-
ties, not more than $98,000,000 may be used for the purpose of 
procuring or modifying two P-3B aircraft for use by departments 
and agencies of the United States outside the Department of 
Defense for drug interdiction and counter-drug activities. However, Certification, 
funds may not be obligated for such purpose until the Secretary 
of Defense submits to the congressional defense committees a certifi-
cation that the procurement or modification of such aircraft and 
the use of such aircraft by other departments or agencies of the 
United States will significantly reduce the level of support that 
would otherwise be required of E-3 AWACS aircraft as part of 
the drug interdiction and counter-drug mission of the Department 
of Defense. 
(b) NONINTRUSIVE INSPECTION DEVICES.—Of the funds author-
ized to be appropriated under section 301(19) for drug interdiction 
and counter-drug activities, not more than $10,000,000 may be 
used to procure three nonintrusive inspection devices for use by 
departments and agencies of the United States outside the Depart-
ment of Defense for drug interdiction and counter-drug activities. 
(c) AUTHORITY TO TRANSFER EQUIPMENT.—^The Secretary of 
Defense may transfer to the head of Einy department or agency 
of the United States outside the Department of Defense any equip-
ment procured or modified under this section with funds referred 
to in this section. 
SEC. 1033. TRANSFER OF EXCESS PERSONAL PROPERTY TO SUPPORT 
LAW ENFORCEMENT ACTIVITIES. 
(a) TRANSFER AUTHORITY.—(1) Chapter 153 of title 10, United 
States Code, is amended by inserting after section 2576 the follow-
ing new section: 
^§ 2576a. Excess personal property: sale or donation for law 
enforcement activities 
"(a) TRANSFER AUTHORIZED.—(1) Notwithstanding any other 
provision of law and subject to subsection (b), the Secretary of 
Defense may transfer to Federal and State agencies personal prop-
erty of the Department of Defense, including small arms and 
ammunition, that the Secretary determines is— 
"(A) suitable for use by the agencies in law enforcement 
activities, including counter-drug and counter-terrorism activi-
ties; and 
"(B) excess to the needs of the Department of Defense. 
"(2) The Secretary shall carry out this section in consultation 
with the Attorney Greneral and the Director of National Drug Con-
trol Policy. 
"(b) CONDITIONS FOR TRANSFER.—^The Secretary of Defense may 
transfer personal property under this section only if— 
"(1) the property is drawn from existing stocks of the 
Department of Defense; 
"(2) the recipient accepts the property on an as-is, where-
is basis; 
"(3) the transfer is made without the expenditure of any 
funds available to the Department of Defense for the procure-
ment of defense equipment; smd 
110 STAT. 2640 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(4) all costs incurred subsequent to the transfer of the 
property are borne or reimbursed by the recipient. 
"(c) CONSIDERATION.—Subject to subsection (b)(4), the Secretary 
may transfer personal property under this section without charge 
to the recipient agency. 
"(d) PREFERENCE FOR CERTAIN TRANSFERS.—In considering 
applications for the transfer of personal property under this section, 
the Secretary shall give a preference to those applications indicating 
that the transferred property will be used in the counter-drug 
or counter-terrorism activities of the recipient agency.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2576 
the following new item: 
"2576a. Excess personal property: sale or donation for law enforcement activities.". 
(b) 
CONFORMING AMENDMENTS.—(1) 
Section 
1208 
of 
the 
National Defense Authorization Act for Fiscal Years 1990 and 1991 
(Public Law 101-189; 10 U.S.C. 372 note) is repealed. 
(2) Section 1005 of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1630) is 
amended by striking out "section 1208 of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (10 U.S.C. 372 
note) and section 372" and inserting in lieu thereof "sections 372 
and 2576a". 
SEC. 1034. SALE BY FEDERAL DEPARTMENTS OR AGENCIES OF 
CHEMICALS USED TO MANUFACTURE CONTROLLED SUB-
STANCES. 
(a) DEA CERTIFICATION.—^The Controlled Substances Act is 
amended by inserting after section 519 (21 U.S.C. 889) the following 
new section: 
21 u s e 890. 
«SEC. 520. REVIEW OF FEDERAL SALES OF CHEMICALS USABLE TO 
MANUFACTURE CONTROLLED SUBSTANCES. 
"A Federal department or agency may not sell from the stocks 
of the department or agency any chemical which, as determined 
by the Administrator of the Drug Enforcement Administration, 
could be used in the manufacture of a controlled substance unless 
the Administrator certifies in writing to the head of the department 
or agency that there is no reasonable cause to believe that the 
sale of the chemical would result in the illegal manufacture of 
a controlled substance.". 
(b) CLERICAL AMENDMENT.—^The table of contents of the Com-
prehensive Drug Abuse Prevention and Control Act of 1970 (84 
Stat. 1236) is amended by inserting after the item relating to 
section 519 the following new item: 
"Sec. 520. Review of Federal sales of chemicals usable to manufacture controlled 
substances.". 
Subtitle D—^Reports and Studies 
10 u s e 113 note. 
SEC. 1041. ANNUAL REPORT ON OPERATION PROVIDE COMFORT AND 
OPERATION ENHANCED SOUTHERN WATCH. 
(a) ANNUAL REPORT.—^Not later than March 1 of each year, 
the Secretary of Defense shall submit to Congress a report on 
Operation Provide Comfort and Operation Enhanced Southern 
Watch. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2641 
(b) MATTERS RELATING TO OPERATION PROVIDE COMFORT.— 
Each report under subsection (a) shall include, with respect to 
Operation Provide Comfort, the following: 
(1) A detailed presentation of the projected costs to be 
incurred by the Department of Defense for that operation dur-
ing the fiscal year in which the report is submitted and pro-
jected for the following fiscal year, together with a discussion 
of missions and functions expected to be performed by the 
Department as part of that operation during each of those 
fiscal years. 
(2) A detailed presentation of the projected costs to be 
incurred by other departments and agencies of the Federal 
Government participating in or providing support to that oper-
ation during each of those fiscal years. 
(3) A discussion of options being pursued to reduce the 
involvement of the Department of Defense in those aspects 
of that operation that are not directly related to the military 
mission of the Department of Defense. 
(4) A discussion of the exit strategy for United States 
involvement in, and support for, that operation. 
(5) A description of alternative approaches to accomplishing 
the mission of that operation that are designed to limit the 
scope and cost to the Department of Defense of accomplishing 
that mission while maintaining mission success. 
(6) The contributions (both in-kind and actual) by other 
nations to the costs of conducting that operation. 
(7) A detailed presentation of significant Iraqi military 
activity (including specific violations of the no-fly zone) deter-
mined to jeopardize the security of the Kurdish population 
in northern Iraq. 
(c) MATTERS RELATING TO OPERATION ENHANCED SOUTHERN 
WATCH.—^Each report under subsection (a) shall include, with 
respect to Operation Enhanced Southern Watch, the following: 
(1) The expected duration and annual costs of the various 
elements of that operation. 
(2) The political and military objectives associated with 
that operation. 
(3) The contributions (both in-kind and actual) by other 
nations to the costs of conducting that operation. 
(4) A description of alternative approaches to accomplishing 
the mission of that operation that are designed to limit the 
scope and cost of accomplishing that mission while maintaining 
mission success. 
(5) A comprehensive discussion of the political and military 
objectives and initiatives that the Department of Defense has 
pursued, and intends to pursue, in order to reduce United 
States involvement in that operation. 
(6) A detailed presentation of significant Iraqi military 
activity (including specific violations of the no-fly zone) deter-
mined to jeopardize the security of the Shiite population by 
air attack in southern Iraq or to jeopardize the security of 
Kuwait. 
(d) TERMINATION OF REPORT REQUIREMENT.—^The requirement 
under subsection (a) shall cease to apply with respect to an oper- 
-
ation named in that subsection upon the termination of United 
States involvement in that operation. 
(e) DEFINITIONS.—^For purposes of this section: 
110 STAT. 2642 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(1) OPERATION ENHANCED SOUTHERN WATCH.—^The term 
"Operation Enhanced Southern Watch" means the operation 
of the Department of Defense that as of October 30, 1995, 
is designated as Operation Enhanced Southern Watch. 
(2) OPERATION PROVIDE COMFORT.—The term "Operation 
Provide Comfort" means the operation of the Department of 
Defense that as of October 30, 1995, is designated as Operation 
Provide Comfort. 
10 use 113 note. 
SEC. 1042. ANNUAL REPORT ON EMERGING OPERATIONAL CONCEPTS. 
(a) REPORT REQUIRED.—Not later than March 1 of each year 
through 2000, the Secretary of Defense shall submit to the Commit-
tee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on emerging 
operational concepts. Each such report shall be prepared by the 
Secretary in consultation with the Chairman of the Joint Chiefs 
of Staff. 
(b) MATTERS TO BE INCLUDED.—Each such report shall contain 
a description, for the year preceding the year in which the report 
is submitted, of the following: 
(1) The process undertaken in the Department of Defense, 
and in each of the Army, Navy, Air Force, and Marine Corps, 
to define and develop doctrine, operational concepts, organiza-
tional concepts, and acquisition strategies to address— 
(A) the potential of emerging technologies for signifi-
cantly improving the operational effectiveness of the Armed 
Forces; 
(B) changes in the international order that may neces-
sitate changes in the operational capabilities of the Armed 
Forces; 
(C) emerging 
capabilities 
of potential 
adversary 
states; and 
(D) changes in defense budget projections. 
(2) The manner in which the processes described in para-
graph (1) are harmonized to ensure that there is a sufficient 
consideration of the development of joint doctrine, operational 
concepts, and acquisition strategies. 
(3) The manner in which the processes described in para-
graph (1) are coordinated through the Joint Requirements Over-
sight Council and reflected in the planning, programming, and 
budgeting process of the Department of Defense. 
SEC. 1043. REPORT ON DEPARTMENT OF DEFENSE MILITARY CfflLD 
CARE PROGRAMS. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The Department of Defense should be congratulated 
on the successful implementation of the Military Child Care 
Act of 1989 (originally enacted as title XV of Public Law 101-
189 and subsequently codified as subchapter II of chapter 88 
of title 10, United States Code). 
(2) The actions taken by the Department as a result of 
that Act have dramatically improved the availability, afford-
ability, quality, and consistency of the child-care services pro-
vided to members of the Armed Forces. 
(3) Child care is important to the readiness of members 
of the Armed Forces since single parents and couples in military 
service must have access to affordable child care of good quality\ 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2643 
if they are to perform their jobs and respond effectively to 
long work hours or deployments. 
(4) Child care is important to the retention of members 
of the Armed Forces in military service because the dissatisfac-
tion of the families of such members with military life is a 
primary reason for the departure of such members from military 
service. 
(b) SENSE OF CONGRESS RELATED TO MILITARY-CIVILIAN CHILD-
CARE PARTNERSHIP PROGRAMS.—It is the sense of Congress that— 
(1) the civilian and military child-care communities, 
Federal, State, and local agencies, and businesses and commu-
nities involved in the provision of child-care services could 
benefit from the development of partnerships to foster an 
exchange of ideas, information, and materials relating to their 
experiences with the provision of such services and to encourage 
closer relationships between military installations and the 
communities that support them; 
(2) such partnerships would be beneficial to all families 
by helping providers of child-care services exchange ideas about 
innovative ways to address barriers to the effective provision 
of such services; and 
(3) there are many ways that such partnerships could 
be developed, including— 
(A) cooperation between the directors and curriculum 
specialists of military child development centers and 
civilian child development centers in assisting such centers 
in the accreditation process; 
(B) use of family support staff to conduct parent and 
family workshops for new parents and parents with young 
children in family housing on military installations and 
in communities in the vicinity of such installations; 
(C) internships in Department of Defense child-care 
programs for civilian child-care providers to broaden the 
base of good-quality child-care services in communities in 
the vicinity of military installations; and 
(D) attendance by civilian child-care providers at 
Department child-care training classes on a space-available 
basis. 
(c) REPORT.—Not later than June 30, 1997, the Secretary of 
Defense shall submit to Congress a report on the status of any 
partnerships and other initiatives undertaken by the Department 
of Defense as described in subsection (b), including recommenda-
tions for additional ways to improve the child-care programs of 
the Department of Defense and to improve such programs so as 
to benefit civilian child-care providers in communities in the vicinity 
of military installations. 
SEC. 1044. REPORT ON DEPARTMENT OF DEFENSE MILITARY YOUTH 
PROGRAMS. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Programs of the Department of Defense for youth who 
are dependents of members of the Armed Forces have not 
received the same level of attention and resources as have 
child-care programs of the Department since the passage of 
the Military Child Care Act of 1989 (originally enacted as 
title XV of Public Law 101-189 and subsequently codified as 
subchapter II of chapter 88 of title 10, United States Code). 
110 STAT. 2644 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(2) Older children deserve as much attention to their devel-
opmental needs as do younger children. 
(3) The Department has started to direct more attention 
to programs for youths who are dependents of members of 
the Armed Forces by providing funds for the implementation 
of 20 model community programs to address the needs of such 
youths. 
(4) The lessons learned from such programs could apply 
to civilian youth programs as well. 
(b) SENSE OF CONGRESS RELATED TO MILITARY-CIVILIAN YOUTH 
PARTNERSHIP PROGRAMS.—It is the sense of Congress that— 
(1) the Department of Defense, Federal, State, and local 
agencies, and businesses and communities involved in conduct-
ing youth programs could benefit from the development of 
partnerships to foster an exchange of ideas, information, and 
materials relating to such programs and to encourage closer 
relationships between military installations and the commu-
nities that support them; 
(2) such partnerships could be beneficial to all families 
by helping the providers of services for youths exchange ideas 
about innovative ways to address barriers to the effective provi-
sion of such services; and 
(3) there are many ways that such partnerships could 
be developed, including— 
(A) cooperation between the Department and Federal 
and State educational agencies in exploring the use of 
public school facilities for child-care programs and youth 
programs that are mutually beneficial to the Department 
and civilian communities and complement programs of the 
Department carried out at its facilities; and 
(B) improving youth programs that enable adolescents 
to relate to new peer groups when families of members 
of the Armed Forces are relocated. 
(c) REPORT.—Not later than June 30, 1997, the Secretary of 
Defense shall submit to Congress a report on the status of any 
partnerships and other initiatives undertaken by the Department 
as described in subsection (b), including recommendations for addi-
tional ways to improve the youth programs of the Department 
of Defense and to improve such programs so as to benefit commu-
nities in the vicinity of military installations. 
SEC. 1045. QUARTERLY 
REPORTS 
REGARDING 
COPRODUCTION 
AGREEMENTS. 
(a) QUARTERLY REPORTS ON COPRODUCTION AGREEMENTS.—Sec-
tion 36(a) of the Arms Export Control Act (22 U.S.C. 2776(a)) 
is amended— 
(1) by striking out "and" at the end of paragraph (10); 
(2) by striking out the period at the end of paragraph 
(11) and inserting in lieu thereof"; and"; and 
(3) by inserting after paragraph (11) the following new 
paragraph: 
"(12) a report oil all concluded govemment-to-govemment 
agreements regarding foreign coproduction of defense articles 
of United States origin and all other concluded agreements 
involving coproduction or licensed production outside of the 
United States of defense articles of United States origin (includ-
ing coproduction memoranda of understanding or agreement) 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2645 
that have not been previously reported under this subsection, 
which shall include— 
"(A) the identity of the foreign countries, international 
organizations, or foreign firms involved; 
"(B) a description and the estimated value of the 
articles authorized to be produced, and an estimate of 
the quantity of the articles authorized to be produced; 
"(C) a description of any restrictions on third-party 
transfers of the foreign-manufactured articles; and 
"(D) if any such agreement does not provide for United 
States access to and verification of quantities of articles 
produced overseas and their disposition in the foreign coun-
try, a description of alternative measures and controls 
incorporated in the coproduction or licensing program to 
ensure compliance with restrictions in the agreement on 
production quantities and third-party transfers.", 
(b) EFFECTIVE DATE.—Paragraph (12) of section 36(a) of the 
22 use 2776 
Arms Export Control Act, as added by subsection (a)(3), does not °ote. 
apply with respect to an agreement described in such paragraph 
entered into before the date of the enactment of this Act. 
SEC. 1046. REPORT ON WITNESS INTERVIEW PROCEDURES FOR 
DEPARTMENT OF DEFENSE CRIMINAL INVESTIGATIONS. 
(a) SURVEY OF MILITARY DEPARTMENT POLICIES AND PRAC-
TICES.—^The Comptroller General of the United States shall conduct 
a survey of the policies and practices of the Naval Criminal Inves-
tigative Service with respect to the manner in which interviews 
of suspects and witnesses are conducted in connection with criminal 
investigations of allegations of contractor fraud. The purpose of 
the survey shall be to ascertain whether or not investigators and 
agents of the Naval Criminal Investigative Service conduct inves-
tigations of contractor fraud in accordance with generally accepted 
Federal law enforcement standards and applicable law. 
(b) REPORT.—^Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the Committee on National Security of the House of Representatives 
and the Committee on Armed Services of the Senate a report 
concerning the survey under subsection (a). The report shall specifi-
cally address the following: 
(1) The extent to which investigators of the Naval Criminal 
Investigative Service investigators and agents of the Naval 
Criminal Investigative Service conduct investigations of con-
tractor fraud in accordance with generally accepted Federal 
law enforcement standards and applicable law. 
(2) The extent to which the interview policies established 
by Department of Defense directives or Navy regulations are 
adequate to instruct and guide investigators in the proper 
conduct of subject and witness interviews. 
(3) The desirability and feasibility of providing for video 
and audio recording of interviews and, if recording is desirable, 
the circumstances under which recordings should be made. 
(4) The desirability and feasibility of making such record-
ings or written transcriptions of interviews, or both, available 
on demand to the subject or witness interviewed. 
(5) The extent to which existing Department of Defense 
directives and Navy regulations address the carrjdng and dis-
play of weapons by agents, together with an assessment of 
110 STAT. 2646 
PUBLIC LAW 104-201—SEPT. 23, 1996 
whether any change in any such directive or regulation is 
necessary. 
(6) The extent to which existing Department of Defense 
directives and Navy regulations provide guidance to agents 
to ensure that the agents' conduct and demeanor is in accord-
ance with generally accepted Federal law enforcement stand-
ards and applicable law. 
(7) Any recommendation for legislation to ensure that 
investigators and agents of the Naval Criminal Investigative 
Service use legal and proper tactics during interviews in connec-
tion with criminal investigations of allegations of contractor 
fraud. 
SEC. 1047. REPORT ON MILITARY READINESS REQUIREMENTS OF THE 
ARMED FORCES. 
(a) REPORT REQUIRED.—^Not later than January 31, 1997, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report on the military readiness 
requirements of the active and reserve components of the Armed 
JPorces, including specific combat units, combat support units, and 
//combat service support units. Based on the assessment scenario 
described in subsection (c), the report shall assess such readiness 
requirements under a tiered readiness and response system that 
categorizes a given unit of the Armed Forces according to the 
likelihood that the unit will be required to respond to a military 
conflict and the time in which the unit will be required to respond. 
(b) PREPARATION OF REPORT.—^The Chairman of the Joint Chiefs 
of Staff, together with the other members of the Joint Chiefs of 
Staff specified in section 151(a) of title 10, United States Code, 
shall prepare the report required by subsection (a). The Chairman 
of the Joint Chiefs of Staff shall consult with the Commander 
of the Special Operations Command in the preparation of the report. 
(c) ASSESSMENT SCENARIO.—^The report shall assess readiness 
requirements in a scenario based on the following assumptions: 
(1) The conflict is in a generic theater of operations located 
anywhere in the world and does not exceed the notional limits 
for a major regional conflict. 
(2) The forces available for deployment include the forces 
described in the Bottom-Up Review force structure, including 
all planned force enhancements. 
(3) Assistance is not available from allies. 
(d) ASSESSMENT ELEMENTS.—^The report shall identify by unit 
type and component, and assess the readiness requirements of, 
all active and reserve component units. Each such unit shall be 
categorized within one of the following classifications: 
(1) Forward-deployed and crisis response forces, or "Tier 
I" forces, that possess limited internal sustainment capability 
and do not require immediate access to regional air bases 
or ports or overflight rights, including the following: 
(A) Force units that are routinely deployed forward 
at sea or on land outside the United States. 
(B) Combat-ready crises response forces that are 
capable of mobilizing and deploying within 10 days after 
receipt of orders. 
(C) Forces that are supported by prepositioning equip-
ment afloat or are capable of being inserted into a theater 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2647 
upon the capture of a port or airfield by forcible entry 
forces. 
(2) Combat-ready follow-on forces, or "Tier 11" forces, that 
can be mobilized and deployed to a theater within approxi-
mately 60 days after receipt of orders. 
(3) Combat-ready conflict resolution forces, or 'Tier III" 
forces, that can be mobilized and deployed to a theater within 
approximately 180 days after receipt of orders. 
(4) All other active and reserve component force units which 
are not categorized within a classification described in para-
graph (1), (2), or (3). 
(e) ADDITIONAL INFORMATION REGARDING CERTAIN UNITS.— 
With regard to each unit that is not categorized within a classifica-
tion described in paragraph (1), (2), or (3) of subsection (d), the 
report shall include— 
(1) a description of the mission and mobilization or deploy-
ment schedule (or both) of the unit in connection with the 
requirements of the assessment scenario and the combat readi-
ness requirements of the Armed Forces; or 
(2) an identification of the unit as excess to the needs 
of the national military strategy and the reasons therefor. 
(f) FORM OF REPORT.—The report under this section shall be 
submitted in unclassified form but may contain a classified annex. 
SEC. 1048. REPORT ON NATO ENLARGEMENT. 
President. 
(a) REPORT.—Not later than February 1, 1997, the President 
shall transmit to the Committee on Armed Services and the 
Committee on Foreign Relations of the Senate and the Committee 
on National Security and the Committee on International Relations 
of the House of Representatives a report on the enlargement of 
the North Atlantic Treaty Organization. The report shall contain 
a comprehensive discussion of the following: 
(1) Geopolitical and financial costs and benefits, including 
financial savings, associated with— 
(A) enlargement 
of 
the 
North 
Atlantic 
Treaty 
Organization; 
(B) further delays in the process of enlargement of 
the North Atlantic Treaty Organization; and 
(C) a failure to enlarge the North Atlantic Treaty 
Organization. 
(2) Additional North Atlantic Treaty Organization and 
United States military expenditures requested by prospective 
members of the North Atlantic Treaty Organization to facilitate 
their admission into the North Atlantic Treaty Organization. 
(3) Modifications necessary in the military strategy of the 
North Atlantic Treaty Organization and force structure required 
by the inclusion of new members and steps necessary to 
integrate new members, including the role of nuclear and 
conventional capabilities, reinforcement, force deployments, 
prepositioning of equipment, mobility, and headquarter loca-
tions. 
(4) The relationship between enlargement of the North 
Atlantic Treaty Organization and transatlantic stability and 
security. 
(5) The state of military preparedness and interoperability 
of Central and Eastern European nations as it relates to the 
responsibilities of membership of the North Atlantic Treaty 
110 STAT. 2648 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Organization and additional security costs or benefits that may 
accrue to the United States from enlargement of the North 
Atlantic Treaty Organization. 
(6) The state of democracy and free market development 
as it affects the preparedness of Central and Eastern European 
nations for the responsibilities of membership of the North 
Atlantic Treaty Organization, including civilian control of the 
military, the rule of law, human rights, and parliamentary 
oversight. 
(7) The state of relations between prospective members 
of the North Atlantic Treaty Organization and their neighbors, 
steps taken by prospective members to reduce tensions, and 
mechanisms for the peaceful resolution of border disputes. 
(8) The commitment of prospective members of the North 
Atlantic Treaty Organization to the principles of the North 
Atlantic Treaty and the security of the North Atlantic area. 
(9) The effect of enlargement of the North Atlantic Treaty 
Organization on the political, economic, and security conditions 
of European Partnership for Peace nations not among the first 
new members of the North Atlantic Treaty Organization. 
(10) The relationship between enlargement of the North 
Atlantic Treaty Organization and EU enlargement and the 
costs and benefits of both. 
(11) The relationship between enlargement of the North 
Atlantic Treaty Organization and treaties relevant to United 
States and European security, such as the Conventional Armed 
Forces in Europe Treaty. 
(12) The anticipated impact both of enlargement of the 
North Atlantic Treaty Organization and further delays of 
enlargement on Russian foreign and defense policies and the 
costs and benefits of a security relationship between the North 
Atlantic Treaty Organization and Russia. 
(b) INTERPRETATION.—Nothing in this section shall be inter-
preted or construed to affect the implementation of the NATO 
Participation Act of 1994 (title II of Public Law 103-447; 22 U.S.C. 
1928 note), or any other program or activity which facilitates or 
assists prospective members oi the North Atlantic Treaty Organiza-
tion. 
Subtitle E—Management of Armed Forces 
Retirement Home 
SEC. 1051. RETIREMENT HOME BOARDS OF DIRECTORS. 
(a) ADDITIONAL TERM OF OFFICE.—Subsection (e) of section 
1515 of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 
415) is amended by adding at the end the following new paragraph: 
"(3) The Chairman of the Retirement Home Board may appoint 
a member of the Retirement Home Board for a second consecutive 
term. The Chairman of a Local Board may appoint a member 
of that Local Board for a second consecutive term.". 
(b) EARLY EXPIRATION OF TERM.—(1) Subsection (f) of such 
section is amended to read as follows: 
"(f) EARLY EXPIRATION OF TERM.—^A member of the Armed 
Forces or Federal civilian employee who is appointed as a member 
of the Retirement Home Board or a Local Board may serve as 
a board member only so long as the member of the Armed Forces 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2649 
or Federal civilian employee is assigned to or serving in the duty 
position that gave rise to the appointment as a board member.". 
(2) The amendment made by this subsection shall not affect 
24 USC 415 note, 
the staggered terms of members of the Armed Forces Retirement 
Home Board or a Local Board of the Retirement Home under 
section 1515(f) of such Act, as such section is in effect before 
the date of the enactment of this Act. 
(c) ANNUAL EVALUATION OF DIRECTORS.—Section 1517 of such 
Act (24 U.S.C. 417) is amended by striking out subsection (f) and 
inserting in lieu thereof the following: 
"(f) ANNUAL EVALUATION OF DIRECTORS.—^The Chairman of the 
Retirement Home Board shall annually evaluate the performance 
of the Directors and shall make such recommendations to the 
Secretary of Defense as the Chairman considers appropriate in 
light of the evaluation.". 
SEC. 1052. ACCEPTANCE OF UNCOMPENSATED SERVICES. 
(a) AUTHORITY.—Part A of the Armed Forces Retirement Home 
Act of 1991 (title XV of Public Law 101-510; 24 U.S.C. 401 et 
seq.) is amended by adding at the end the following new section: 
"SEC. 1522. AUTHORITY TO ACCEPT CERTAIN UNCOMPENSATED 
24 USC 422. 
SERVICES. 
"(a) AUTHORITY TO ACCEPT SERVICES.—Subject to subsection 
(b) and notwithstanding section 1342 of title 31, United States 
Code, the Chairman of the Retirement Home Board or the Director 
of each establishment of the Retirement Home may accept from 
any person voluntary personal services or gratuitous services unless 
the acceptance of the voluntary services is disapproved by the 
Retirement Home Board. 
"(b) REQUIREMENTS AND LIMITATIONS.—(1) The Chairman of 
the Retirement Home Board or the Director of the establishment 
accepting the services shall notify the person of the scope of the 
services accepted. 
"(2) The Chairman or Director shall— 
"(A) supervise the person providing the services to the 
same extent as that official would supervise a compensated 
employee providing similar services; and 
"(B) ensure that the person is licensed, privileged, has 
appropriate 
credentials, or is otherwise 
qualified 
under 
applicable laws or regulations to provide such services. 
"(3) A person providing services accepted under subsection (a) 
may not— 
"(A) serve in a policjonaking position of the Retirement 
Home; or 
"(B) be compensated for the services by the Retirement 
Home. 
"(c) AUTHORITY TO RECRUIT AND TRAIN PERSONS PROVIDING 
SERVICES.—^The Chairman of the Retirement Home Board or the 
Director of an establishment of the Retirement Home may recruit 
and train persons to provide services authorized to be accepted 
under subsection (a). 
"(d) STATUS OF PERSONS PROVIDING SERVICES.—(1) Subject to 
paragraph (3), while providing services accepted under subsection 
(a) or receiving training under subsection (c), a person shall be 
considered to be an employee of the Federal Government only 
for purposes of the following provisions of law: 
110 STAT. 2650 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(A) Subchapter I of chapter 81 of title 5, United States 
Code (relating to compensation for work-related injuries). 
"(B) Chapter 171 of title 28, United States Code (relating 
to claims for damages or loss). 
"(2) A person providing services accepted under subsection (a) 
shall be considered to be an employee of the Federal Government 
under paragraph (1) only with respect to services that are within 
the scope of the services accepted. 
"(3) For purposes of determining the compensation for work-
related injuries payable under chapter 81 of title 5, United States 
Code (pursuant to this subsection) to a person providing services 
accepted under subsection (a), the monthly pay of the person for 
such services shall be deemed to be the amount determined by 
multiplying— 
"(A) the average monthly number of hours that the person 
provided the services, by 
"(B) the minimum wage determined in accordance with 
section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 206(a)(1)). 
"(e) REIMBURSEMENT OF INCIDENTAL EXPENSES.—^The Chairman 
of the Retirement Board or the Director of the establishment accept-
ing services under subsection (a) may provide for reimbursement 
of a person for incidental expenses incurred by the person in provid-
ing the services accepted under subsection (a). The Chairman or 
Director shall determine which expenses qualify for reimbursement 
under this subsection.". 
(b) FEDERAL STATUS OF RESIDENTS PAID FOR PART-TIME OR 
INTERMITTENT SERVICES.—Paragraph (2) of section 1521(b) of the 
Armed Forces Retirement Home Act of 1991 (24 U.S.C. 421(b)) 
is amended to read as follows: 
"(2) being an employee of the United States for any purpose 
other than— 
"(A) subchapter I of chapter 81 of title 5, United States 
Code (relating to compensation for work-related injuries); 
and 
"(B) chapter 171 of title 28, United States Code (relat-
ing to claims for damages or loss).". 
SEC. 1053. DISPOSAL OF TRACT OF REAL PROPERTY IN THE DISTRICT 
OF COLUMBIA-
(a) DISPOSAL AUTHORIZED.—Notwithstanding title II the Fed-
eral Property and Administrative Services Act of 1949 (40 U.S.C. 
481 et seq.), title VIII of such Act (40 U.S.C. 531 et seq.), section 
501 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11411), or any other provision of law relating to the management 
and disposal of real property by the United States, the Armed 
Forces Retirement Home Board may convey, by sale or otherwise, 
all right, title, and interest of the United States in a parcel of 
real property, including improvements thereon, consisting of 
approximately 49 acres located in Washington, District of Columbia, 
east of North Capitol Street, and recorded as District Parcel 121/ 
19. 
(b) 
MANNER, 
TERMS, AND CONDITIONS OF DISPOSAL.—^The 
Armed Forces Retirement Home Board may determine— 
(1) the manner for the disposal of the real property under 
subsection (a); and 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2651 
(2) the terms and conditions for the conveyance of that 
property, including any terms and conditions that the Board 
considers necessary to protect the interests of the United States. 
(c) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Armed 
Forces Retirement Home Board. The cost of the survey shall be 
borne by the party or parties to which the property is to be conveyed. 
(d) CONGRESSIONAL NOTIFICATION.—<1) Before disposing of real 
property under subsection (a), the Armed Forces Retirement Home 
Board shall notify the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representa-
tives of the proposed disposal. The Board may not dispose of the 
real property until the later of— 
(A) the date that is 60 days after the date on which the 
notification is received by the committees; or 
(B) the date of the next day following the expiration of 
the first period of 30 days of continuous session of Congress 
that follows the date on which the notification is received 
by the committees. 
(2) For the purposes of paragraph (1)— 
(A) continuity of session is broken only by an adjournment 
of Congress sine die; and 
(B) the days on which either House is not in session because 
of an adjournment of more than three days to a day certain 
are excluded in the computation of any period of time in which 
Congress is in continuous session. 
Subtitle F—Other Matters 
SEC. 1061. POLICY ON PROTECTION OF NATIONAL INFORMATION 
President. 
INFRASTRUCTURE AGAINST STRATEGIC ATTACK. 
(a) REPORT REQUIREMENT.—Not later than 180 days after the 
date of the enactment of this Act, the President shall submit to 
Congress a report setting forth a national policy on protecting 
the national information infrastructure against strategic attack. 
(b) MATTERS TO BE INCLUDED.—The policy described in the 
report shall include the following: 
(1) Plans to meet essential Government and civilian needs 
during a national security emergency associated with a strategic 
attack on elements of the national information infrastructure 
the functioning of which depend on networked computer 
systems. 
(2) The identification of information infrastructure func-
tions that must be performed during such an emergency. 
(3) The assignment of responsibilities to Federal depart-
ments and agencies, and a description of the roles of Govern-
ment and industry, relating to indications and warning of, 
assessment of, response to, and reconstitution after, potential 
strategic attacks on the elements of the national information 
infrastructure described under paragraph (1). 
(c) UNRESOLVED ISSUES.—The report shall also identify— 
(1) matters relating to the national policy described in 
the report that, as of the submission of the report, are in 
need of further study and resolution, such as technology and 
funding shortfalls; and 
110 STAT. 2652 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(2) legal and regulatory considerations relating to the 
national policy. 
(d) UPDATE OF EARLIER REPORT.—The report shall include an 
update of the report required to be submitted to Congress pursuant 
to section 1053 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 440). 
SEC. 1062. INFORMATION SYSTEMS SECURITY PROGRAM. 
(a) ALLOCATION.—Of the amounts appropriated for the Depart-
ment of Defense for the Defense Information Infrastructure for 
each of fiscal years 1999 through 2002, the Secretary of Defense 
shall allocate to the information systems security program (program 
element 0303140K) amounts as follows: 
(1) For fiscal year 1999, 2.5 percent. 
(2) For fiscal year 2000, 3.0 percent. 
(3) For fiscal year 2001, 3.5 percent. 
(4) For fiscal year 2002, 4.0 percent. 
(b) RELATIONSHIP TO OTHER AMOUNTS.—^Amounts allocated 
under subsection (a) are in addition to amounts appropriated to 
the National Security Agency and the Defense Advanced Research 
Projects Agency for development of information security systems, 
acquisition of information security systems, and operation of 
information security systems. 
(c) REPORT.—Not later than November 15, 1997, the Secretary 
of Defense shall submit to the congressional defense committees 
and the congressional intelligence committees a report on informa-
tion security activities of the Department of Defense. The report 
shall describe— 
(1) the objectives of the Secretary with respect to informa-
tion security and the strategy of the Secretary (including the 
strategy with respect to funding) during fiscal years 1999 
through 2002 to achieve those objectives; 
(2) how the Secretary intends to manage and allocate the 
funds required by subsection (a) to be allocated to the informa-
tion systems security program; and 
(3) if the Secretary determines that a funding plan for 
the information systems security program for fiscal years 1999 
through 2002 other than that specified in subsection (a) is 
appropriate, the alternative funding plan proposed by the Sec-
retary. 
(d) DEFENSE INFORMATION INFRASTRUCTURE.—For purposes of 
this section, the Defense Information Infrastructure is the web 
of communications networks, computers, software, 
databases, 
applications, data security services, and other capabilities that 
meets the information processing and transport needs of Depart-
ment of Defense users. 
SEC. 1063. AUTHORITY 
TO ACCEPT 
SERVICES 
FROM 
FOREIGN 
GOVERNMENTS AND INTERNATIONAL ORGANIZATIONS 
FOR DEFENSE PURPOSES. 
Section 2608(a) of title 10, United States Code, is amended 
by inserting before the period at the end the following: "and may 
accept from any foreign government or international organization 
any contribution of services made by such foreign government or 
international organization for use by the Department of Defense". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2653 
SEC. 1064. PROHIBITION 
ON 
COLLECTION 
AND 
RELEASE 
OF 
15USC5621 
DETAILED SATELLITE IMAGERY RELATING TO ISRAEL. 
note. 
(a) COLLECTION AND DISSEMINATION.—A department or agency 
of the United States may issue a license for the collection or 
dissemination by a non-Federal entity of satellite imagery with 
respect to Israel only if such imagery is no more detailed or precise 
than satellite imagery of Israel that is available from commercial 
sources. 
(b) DECLASSIFICATION AND RELEASE.—^A department or agency 
of the United States may declassify or otherwise release satellite 
imagery with respect to Israel only if such imagery is no more 
detailed or precise than satellite imagery of Israel that is available 
from commercial sources. 
SEC. 1065. GEORGE C. MARSHALL EUROPEAN CENTER FOR STRATEGIC 
10 USC 113 note. 
SECURITY STUDIES. 
(a) AUTHORITY TO ACCEPT FOREIGN GIFTS AND DONATIONS.— 
(1) The Secretary of Defense may, on behalf of the George C. 
Marshall European Center for Strategic Security Studies (in this 
section referred to as the "Marshall Center"), accept foreign gifts 
or donations in order to defray the costs of, or enhance the operation 
of, the Marshall Center. 
(2) Funds received by the Secretary under paragraph (1) shall 
be credited to appropriations available for the Department of 
Defense for the Marshall Center. Funds so credited shall be merged 
with the appropriations to which credited and shall be available 
for the Marshall Center for the same purposes and same period 
as the appropriations with which merged. 
(3) The Secretary of Defense shall notify Congress if the total 
Notification. 
amount of money accepted under paragraph (1) exceeds $2,000,000 
in any fiscal year. Any such notice shall list each of the contributors 
of such amounts and the amount of each contribution in such 
fiscal year. 
(4) For purposes of this subsection, a foreign gift or donation 
is a gift or donation of funds, materials (including research mate-
rials), property, or services (including lecture services and faculty 
services) from a foreign government, a foundation or other chari-
table organization in a foreign country, or an individual in a foreign 
country. 
(b) MARSHALL CENTER PARTICIPATION BY FOREIGN NATIONS.— 
(1) Notwithstanding any other provision of law, the Secretary of 
Defense may authorize participation by a European or Eurasian 
nation in Marshall Center programs if the Secretary determines, 
after consultation with the Secretary of State, that such participa-
tion is in the national interest of the United States. 
(2) Not later than January 31 of each year, the Secretary Reports. 
of Defense shall submit to Congress a report setting forth the 
names of the foreign nations permitted to participate in programs 
of the Marshall Center during the preceding year under paragraph 
(1). Each such report shall be prepared by the Secretary with 
the assistance of the Director of the Marshall Center. 
(c) EXEMPTIONS FOR MEMBERS OF MARSHALL CENTER BOARD 
OF VISITORS FROM CERTAIN REQUIREMENTS.—(1) In the case of 
any person invited to serve without compensation on the Marshall 
Center Board of Visitors, the Secretary of Defense may waive any 
requirement for financial disclosure that would otherwise apply 
to that person solely by reason of service on such Board. 
110 STAT. 2654 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(2) Notwithstanding any other provision of law, a member 
of the Marshall Center Board of Visitors may not be required 
to register as an agent of a foreign government solely by reason 
of service as a member of the Board. 
(3) Notwithstanding section 219 of title 18, United States Code, 
a non-United States citizen may serve on the Marshall Center 
Board of Visitors even though registered as a foreign agent. 
31 u s e 5111 
SEC. 1066. AUTHORITY TO AWARD TO CIVILIAN PARTICIPANTS IN THE 
note. 
DEFENSE OF PEARL HARBOR THE CONGRESSIONAL 
MEDAL PREVIOUSLY AUTHORIZED ONLY FOR MILITARY 
PARTICIPANTS IN THE DEFENSE OF PEARL HARBOR 
(a) AUTHORITY.—^The Speaker of the House of Representatives 
and the President pro tempore of the Senate are authorized jointly 
to present, on behalf of Congress, a bronze medal provided for 
under section 1492 of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1721) to any 
person who meets the eligibility requirements set forth in subsection 
(d) of that section other than the requirement for membership 
in the Armed Forces, as certified under subsection (e) of that 
section or under subsection (b) of this section. 
(b) CERTIFICATION.—The Secretary of Defense shall, not later 
than 12 months after the date of the enactment of this Act, certify 
to the Speaker of the House of Representatives and the President 
pro tempore of the Senate the names of persons who are eligible 
for award of the medal under this Act and have not previously 
been certified under section 1492(e) of the National Defense 
Authorization Act for Fiscal Year 1991. 
(c) APPLICATIONS.—Subsections (d)(2) and (f) of section 1492 
of the National Defense Authorization Act for Fiscal Year 1991 
shall apply in the administration of this section. 
(d) ADDITIONAL STRIKING AUTHORITY.—The Secretary of 
the 
Treasury shall strike such additional medals as may be necessary 
for presentation under the authority of subsection (a). 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated such sum as may be necessary to carry out 
this section. 
(f) RETROACTIVE EFFECTIVE DATE.—The authority under sub-
section (a) shall be effective as of November 5, 1990. 
SEC. 1067. ASSIMILATIVE 
CRIMES 
AUTHORITY 
FOR 
TRAFFIC 
OFFENSES ON MILITARY INSTALLATIONS. 
Section 4 of the Act of June 1, 1948 (40 U.S.C. 318c), is 
amended— 
(1) by striking out "Whoever shall violate" and inserting 
in lieu thereof "(a) Except as provided in subsection (b), whoever 
violates"; 
(2) by inserting "than" after "not more"; and 
(3) by adding at the end the following: 
"(b)(1) Whoever violates any military traffic regulation shall 
be fined an amount not to exceed the amount of the maximum 
fine for a like or similar offense under the criminal or civil law 
of the State, territory, possession, or district where the military 
installation in which the violation occurred is located, or imprisoned 
for not more than 30 days, or both. 
"(2) For purposes of this subsection, the term 'military traffic 
regulation' means a rule or regulation for the control of vehicular 
or pedestrian traffic on military installations that is promulgated 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2655 
by the Secretary of Defense, or the designee of the Secretary, 
under the authority delegated pursuant to section 2.". 
SEC. 1068. UNIFORM CODE OF MILITARY JUSTICE AMENDMENTS. 
(a) TECHNICAL AMENDMENT REGARDING FORFEITURES DURING 
CONFINEMENT 
ADJUDGED 
BY 
A 
COURT-MARTIAL.—(1) Section 
858b(a)(l) of title 10, United States Code (article 58b(a)(l) of the 
Uniform Code of Military Justice), is amended— 
(A) in the first sentence, by inserting "(if adjudged by 
a general court-martial)" £ifter "all pay and"; and 
(B) in the third sentence, by striking out "two-thirds of 
all pay and allowances" and inserting in lieu thereof "two-
thirds of all pay". 
(2) The amendments made by paragraph (1) shall take effect 
Effective date, 
as of April 1, 1996, and shall apply to any case in which a sentence Applicability, 
is adjudged by a court-martial on or after that date. 
^ote 
^ 
(b) EXCEPTED SERVICE APPOINTMENTS TO CERTAIN NONATTOR- 
" 
' 
NEY POSITIONS OF THE UNITED STATES COURT OF APPEALS FOR 
THE ARMED FORCES.—(1) Subsection (c) of section 943 of title 10, 
United States Code (article 143(c) of the Uniform Code of Military 
Justice) is amended in paragraph (1) by inserting after the first 
sentence the following: "A position of employment under the Court 
that is provided primarily for the service of one judge of the court, 
reports directly to the judge, and is a position of a confidential 
character is excepted from the competitive service.". 
(2) The caption for such subsection is amended by striking 
out "ATTORNEY" and inserting in lieu thereof "CERTAIN". 
(c) REPEAL OF 13-YEAR SPECIAL LIMIT ON TERM OF TRANSI-
TIONAL JUDGE OF UNITED STATES COURT OF APPEALS FOR THE 
ARMED FORCES.—(1) Subsection (d)(2) of section 1301 of the 
National Defense Authorization Act for Fiscal Years 1990 and 1991 
(Pubhc Law 101-189; 103 Stat. 1575; 10 U.S.C. 942 note) is 
amended by striking out "to the judges who are first appointed 
to the two new positions of the court created as of October 1, 
1990—" and all that follows and inserting in lieu thereof "to the 
judge who is first appointed to one of the two new positions of 
the court created as of October 1, 1990, as designated by the 
President at the time of appointment, the anniversary referred 
to in subparagraph (A) of that paragraph shall be treated as being 
the seventh anniversary and the number of years referred to in 
subparagraph (B) of that paragraph shall be treated as being 
seven.". 
(2) Subsection (e)(1) of such section is amended by striking 
out "each judge" and inserting in lieu thereof "a judge". 
SEC. 1069. PUNISHMENT OF INTERSTATE STALKING. 
(a) IN GENERAL.—Chapter llOA of title 18, United States Code, 
is amended by inserting after section 2261 the following new section: 
''§ 2261A. Interstate stalking 
"Whoever travels across a State line or within the special 
maritime and territorial jurisdiction of the United States with the 
intent to injure or harass another person, and in the course of, 
or as a result of, such travel places that person in reasonable 
fear of the death of, or serious bodily injury (as defined in section 
1365(g)(3) of this title) to, that person or a member of that person's 
immediate family (as defined in section 115 of this title) shall 
be punished as provided in section 2261 of this title.". 
110 STAT. 2656 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(b) CONFORMING AMENDMENTS.—Title 18, United States Code, 
is amended as follows: 
(1) Section 2261(b) is amended by inserting "or section 
226 lA" after "this section". 
(2) Sections 2261(b) and 2262(b) are each amended by 
striking "offender's spouse or intimate partner" each place it 
appears and inserting "victim". 
(3) The chapter heading for chapter llOA is amended by 
inserting "AND STALKING" after "VIOLENCE". 
(4) The item relating to chapter llOA in the table of chap-
ters at the beginning of part I is amended to read as follows: 
"llOA. 
Domestic violence and stalking 
2261". 
(c) CLERICAL AMENDMENT.—^The table of sections at the begin-
ning of chapter llOA of such title is amended by inserting after 
the item relating to section 2261 the following new item: 
"226 lA. Interstate stalking.". 
10 u s e 113 note. 
SEC. 1070. PARTICIPATION OF MEMBERS, DEPENDENTS, AND OTHER 
PERSONS IN CRIME PREVENTION EFFORTS AT INSTALLA-
TIONS. 
(a) CRIME PREVENTION PLAN.—^The Secretary of Defense shall 
prepare and implement an incentive-based plan to encourage 
members of the Armed Forces, dependents of members, civilian 
employees of the Department of Defense, and employees of defense 
contractors performing work at military installations to report to 
an appropriate military law enforcement agency any crime or crimi-
nal activity that the person reasonably believes occurred on a mili-
tary installation or involves a member of the Armed Forces. 
(b) INCENTIVES TO REPORT CRIMINAL ACTIVITY.—The Secretary 
of Defense shall include in the plan developed under subsection 
(a) incentives for members and other persons described in such 
subsection to provide information to appropriate military law 
enforcement agencies regarding any crime or criminal activity occur-
ring on a military installation or involving a member of the Armed 
Forces. 
(c) REPORT REGARDING IMPLEMENTATION.—Not later than Feb-
ruary 1, 1997, the Secretary shall submit to Congress a report 
describing the plan being developed under subsection (a). 
SEC. 1071. DISPLAY OF STATE FLAGS AT INSTALLATIONS AND FACILI-
TIES OF THE DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—Subchapter I of chapter 134 of title 10, United 
States Code, is amended by adding at the end the following new 
section: 
*'§ 2249b. Display of State flags: prohibition on use of funds 
to arbitrarily exclude flag; position and manner 
of display 
"(a) PROHIBITION ON USE OF FUNDS.—Funds available to the 
Department of Defense may not be used to prescribe or enforce 
any rule that arbitrarily excludes the official flag of any State, 
territory, or possession of the United States from any display of 
the flags of the States, territories, and possessions of the United 
States at an official ceremony of the Department of Defense. 
"(b) POSITION AND MANNER OF DISPLAY.—^The display of an 
official flag of a State, territory, or possession of the United States 
at an installation or other facility of the Department shall be 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2657 
governed by the provisions of section 3 of the Joint Resolution 
of June 22, 1942 (56 Stat. 378, chapter 435; 36 U.S.C. 175), and 
any modification of such provisions under section 8 of that Joint 
Resolution (36 U.S.C. 178).". 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter I of such chapter is amended by adding at the 
end the following new item: 
"2249b. Display of State flags: prohibition on use of fiinds to arbitrarily exclude flag; 
position and manner of display.". 
SEC. 1072. TREATMENT OF EXCESS OPERATIONAL SUPPORT AIRLIFT 
AIRCRAFT. 
(a) REUTILIZATION OR SALE BEFORE TRANSFER.—^An operational Arizona, 
support airlift aircraft that is excess to the requirements of the 
United States shall be placed in an inactive status and stored 
at Davis-Monthan Air Force Base, Arizona, only upon the deter-
mination of the Secretary of Defense that all reasonable efforts 
for the reutilization of the aircraft by, or sale of the aircraft to, 
Federal agencies or other persons have been completed. The Sec-
retary shall ensure that attempts to reutilize or sell the entire 
aircraft are given precedence over any reutilization or sale of 
individual parts or components of the aircraft. 
(b) OPERATIONAL SUPPORT AIRLIFT AIRCRAFT DEFINED.—In this 
section, the term "operational support airlift aircraft" has the mean-
ing given such term in section 1086(f) of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 458). 
SEC. 1073. CORRECTION TO STATUTORY REFERENCES TO CERTAIN 
DEPARTMENT OF DEFENSE ORGANIZATIONS. 
(a) NORTH AMERICAN AEROSPACE DEFENSE COMMAND.—Section 
162(a) of title 10, United States Code, is amended by striking 
out "North American Air Defense Command" in paragraphs (1), 
(2), and (3) and inserting in lieu thereof "North American Aerospace 
Defense Command". 
(b) FORMER NAVAL RECORDS AND HISTORY OFFICE AND FUND.— 
(1) Section 7222 of title 10, United States Code, is amended by 
striking out "Office of Naval Records and History" each place it 
appears in subsections (a) and (c) and inserting in lieu thereof 
"Naval Historical Center". 
(2)(A) The heading of such section is amended to read as 
follows: 
"§ 7222. Naval Historical Center Fund". 
(B) The item relating to such section in the table of sections 
at the beginning of chapter 631 of title 10, United States Code, 
is amended to read as follows: 
"7222. Naval Historical Center Fund.". 
(3) Section 2055(g) of the Internal Revenue Code of 1986 is 26USC2055. 
amended by striking out paragraph (4) and inserting in lieu thereof 
the following: 
"(4) For treatment of gifts and bequests for the benefit of the 
Naval Historical Center as gifts or bequests to or for the use of the 
United States, see section 7222 of title 10, United States Code.". 
(c) DEFENSE DISTRIBUTION CENTER, ANNISTON.—The Corpora-
tion for the Promotion of Rifle Practice and Firearms Safety Act 
110 STAT. 2658 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(title XVI of Public Law 104-106; 110 Stat. 515; 36 U.S.C. 5501 
et seq.) is amended by striking out "Anniston Army Depot" each 
place it appears in the following provisions and inserting in lieu 
thereof "Defense Distribution Depot, Anniston": 
(1) Section 1615(a)(3) (36 U.S.C. 5505(a)(3)). 
(2) Section 1616(b) (36 U.S.C. 5506(b)). 
(3) Section 1619(a)(1) (36 U.S.C. 5509(a)(1)). 
(d) CHEMICAL DEMILITARIZATION CITIZENS ADVISORY COMMIS-
SIONS.—Section 172 of the National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2341; 50 U.S.C. 
1521 note) is amended by striking out "Assistant Secretary of the 
Army (Installations, Logistics, and Environment)" in subsections 
(b) and (f) and inserting in lieu thereof "Assistant Secretary of 
the Army (Research, Development and Acquisition)". 
(e) DEFENSE ADVANCED RESEARCH PROJECTS AGENCY.—(1) Each 
of the following provisions of law is amended by inserting "Defense" 
before "Advanced Research Projects Agency" each place it appears: 
(A) Section 5316 of title 5, United States Code. 
(B) Subsections (b), (f), and (i) of section 2371 of title 
10, United States Code. 
(C) Section 822(c)(1)(D) of PubHc Law 101-510 (42 U.S.C. 
6686). 
(D) Section 845(a) of Public Law 103-160 (10 U.S.C. 2371 
note). 
(E) Section 243(a) of Public Law 103-160 (10 U.S.C. 2431 
note). 
(F) Sections 1352(c)(2), 1353, and 1354(a) of Public Law 
103-160 (10 U.S.C. 2501 note). 
(2) The section headings of each of the following sections are 
amended by inserting "DEFENSE" before "ADVANCED": 
(A) Section 845 of Public Law 103-160 (10 U.S.C. 2371 
note). 
(B) Sections 1353 and 1354 of Public Law 103-160 (10 
U.S.C. 2501 note). 
(3) The heading for subsection (a) of section 1354 of Public 
Law 103-160 (10 U.S.C. 2501 note) is amended by striking out 
"ARPA" and inserting in lieu thereof "DARPA". 
SEC. 1074. TECHNICAL AND CLERICAL AMENDMENTS. 
(a) MISCELLANEOUS AMENDMENTS TO TITLE 10, UNITED STATES 
CODE.—Title 10, United States Code, is amended as follows: 
(1) Section 129(a) is amended by striking out "the date 
of the enactment of the National Defense Authorization Act 
for Fiscal Year 1996" and inserting in lieu thereof "February 
10, 1996,". 
(2) Section 401 is amended— 
(A) in subsection (a)(4), by striking out "Armed Forces" 
both places it appears and inserting in lieu thereof "armed 
forces"; and 
(B) in subsection (e), by inserting "any of the following" 
after "means". 
(3) Section 528(b) is amended by striking out "(1)" after 
"(b)" and inserting "(1)" before "The limitation". 
(4) Section 1078a(a) is amended by striking out "Beginning 
on October 1, 1994, the" and inserting in lieu thereof 'The". 
(5) Section 1161(b)(2) is amended by striking out "section 
1178" and inserting in lieu thereof "section 1167". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2659 
(6) Section 1167 is amended by striking out "person" and 
inserting in lieu thereof "member". 
(7) The table of sections at the beginning of chapter 81 
is amended by striking out "Sec." in the item relating to section 
1599a. 
(8) Section 1588(d)(1)(C) is amended by striking out "Sec-
tion 522a" and inserting in lieu thereof "Section 552a". 
(9) Chapter 87 is amended— 
(A) in section 1723(a), by striking out the second 
sentence; 
(B) in section 1724— 
(i) in subsection (a), by striking out "small 
purchase threshold" and inserting in lieu thereof "sim-
plified acquisition threshold"; and 
(ii) in subsections (a) and (b), by striking out ", 
beginning on October 1, 1993,"; 
(C) in section 1733(a), by striking out "On and after 
October 1, 1993, a" and inserting in lieu thereof "A"; and 
(D) in section 1734— 
(i) in subsection (a)(1), by striking out ", on and 
after October 1, 1993,"; and 
(ii) in subsection (b)(1)(A), by striking out ", on 
and after October 1, 1991,". 
(10) Section 2216, as added by section 371 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 107 Stat. 277), is redesignated as section 2216a, and Ante, p. 277. 
the item relating to that section in the table of sections at 
the beginning of chapter 131 is revised so as to reflect such 
redesignation. 
(11) Section 2305(b)(6) is amended— 
(A) in subparagraph (B), by striking out "of this sec-
tion" and "of this paragraph"; 
(B) in subparagraph (C), by striking out "this sub-
section" and inserting in lieu thereof "subparagraph (A)"; 
and 
(C) in subparagraph (D), by striking out "pursuant 
to this subsection" and inserting in lieu thereof "under 
subparagraph (A)". 
(12) Section 2306a(h)(3) is amended by inserting "(41 U.S.C. 
403(12))" before the period at the end. 
(13) Section 2323a(a) is amended by striking out "section 
1207 of the National Defense Authorization Act for Fiscal Year 
1987 (10 U.S.C. 2301 note)" and inserting in lieu thereof "sec-
tion 2323 of this title". 
(14) Section 2534(c)(4) is amended by striking out "the 
date occurring two years after the date of the enactment of 
the National Defense Authorization Act for Fiscal Year 1996" 
and inserting in lieu thereof "February 10, 1998". 
(15) The table of sections at the beginning of chapter 155 
is amended by striking out the item relating to section 2609. 
(16) Section 2610(e) is amended by striking out "two years 
after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1996" and inserting in lieu 
thereof "on February 10, 1998". 
(17) Sections 2824(c) and 2826(i)(l) are amended by striking 
out "the date of the enactment of the National Defense 
29-194 O - 96 - 30 : QL 3 Part 3 
110 STAT. 2660 
PUBLIC LAW 104-201—SEPT. 23, 1996 
10 use 1405. 
10 use 2410b. 
10 use 2305. 
10 use 2315. 
Effective date. 
41 use 427. 
Effective date. 
41 use 253b. 
Applicability. 
10 use 6975 
note. 
Effective date. 
10 use 942 note. 
Authorization Act for Fiscal Year 1996" and inserting in lieu 
thereof "February 10, 1996". 
(18) Section 3036(d)(3) is amended by striking out "For 
purposes of this subsection," and inserting in lieu thereof "In 
this subsection,". 
(19) The table of sections at the beginning of chapter 641 
is amended by striking out the item relating to section 7434. 
(20) Section 7863 is amended by inserting "were" in the 
first sentence after "the stores". 
(21) Section 10542(b)(21) is amended by striking out "261" 
and inserting in lieu thereof "12001". 
(22) Section 12205(a) is amended by striking out "After 
September 30, 1995, no person" and inserting in lieu thereof 
"No person". 
(b) AMENDMENTS TO PUBLIC LAW 104-106.—The National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 186 et seq.) is amended as follows: 
(1) Section 561(d)(1) (110 Stat. 322) is amended by inserting 
"of such title" after "Section 1405(c)". 
(2) Section 1092(b)(2) (110 Stat. 460) is amended by striking 
out the period at the end and inserting in lieu thereof "; 
and". 
(3) Section 4301(a)(1) (110 Stat. 656) is amended by 
inserting "of subsection (a)" after "in paragraph (2)". 
(4) Section 5601 (110 Stat. 699) i§ amended— 
(A) in subsection (a), by inserting "of title 10, United 
States Code," before "is amended"; and 
(B) in subsection (c), by striking out "use of equipment 
or services if," in the second quoted matter therein and 
inserting in lieu thereof "use of the equipment or services". 
(5) Section 3403 (110 Stat. 631) is amended by striking 
out "Act of Fiscal" and inserting in lieu thereof "Act for Fiscal". 
(6) Section 4202(c)(1) (110 Stat. 653) is amended, effective 
as of February 10, 1996, by striking out "purchases of" in 
the first quoted matter therein and inserting in lieu thereof 
"contracts for'". 
(7) Section 5607(c) (110 Stat. 701) is amended, effective 
as of February 10, 1996— 
(A) by striking out "303B(h)" and by inserting in lieu 
thereof "303B(k)"; and 
(B) by striking out "253b(h)" and by inserting in lieu 
thereof "253b(k)". 
(c) PROVISIONS EXECUTED BEFORE ENACTMENT OF PUBLIC LAW 
104-106.— 
(1) Section 533(b) of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 315) 
shall apply as if enacted as of December 31, 1995. 
(2) The authority provided under section 942(f) of title 
10, United States Code, shall be effective as if section 1142 
of the National Defense Authorization Act for Fiscal Year 1996 
(Pubhc Law 104-106; 110 Stat. 467) had been enacted on 
September 29, 1995. 
(d) AMENDMENTS TO OTHER ACTS.— 
(1) The last section of the Office of Federal Procurement 
Policy Act (41 U.S.C. 434), as added by section 5202 of Public 
Law 104-106 (110 Stat. 690), is redesignated as section 38, 
and the item appearing after section 34 in the table of contents 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2661 
in the first section of that Act is transferred to the end of 
such table of contents and revised so as to reflect such 
redesignation. 
(2) Section 1412(g)(2) of the Department of Defense 
Authorization Act, 1986 (50 U.S.C. 1521(g)(2)), is amended— 
(A) in the matter preceding subparagraph (A), by strik-
ing out "shall contain—" and inserting in lieu thereof "shall 
include the following:"; 
(B) in subparagraph (A)— 
(i) by striking out "a" before "site-by-site" and 
inserting in lieu thereof "A"; and 
(ii) by striking out the semicolon at the end and 
inserting in lieu thereof a period; and 
(C) in subparagraphs (B) and (C), by striking out "an" 
at the beginning of the subparagraph and inserting in 
lieu thereof "An". 
(3) Section 3131 of Public Law 99-570 (19 U.S.C. 2081; 
100 Stat. 3207-91) is amended in clause (v) of subsection 
(a)(1)(A) by striking out "and (c)" both places it appears. 
(e) COORDINATION WITH OTHER AMENDMENTS.—For purposes Applicability. 
of applying amendments made by provisions of this Act other than 
10 USC 101 note, 
provisions of this section, this section shall be treated as having 
been enacted immediately before the other provisions of this Act. 
(f) AMENDMENTS TO THE OFFICE OF FEDERAL PROCUREMENT 
POLICY ACT.—^The Office of Federal Procurement Policy Act (41 
U.S.C. 403 et seq.) is amended as follows: 
(1) Section 6(D (41 U.S.C. 405(0) is amended by striking 
out "the policies set forth in section 2 or". 
(2) Section 15(a) (41 U.S.C. 413(a)) is amended by striking 
out the second sentence. 
(3) Section 25 (41 U.S.C. 421) is amended— 
(A) in subsection (c)— 
(i) in paragraph (3), by striking out "the policies 
set forth in section 2 of this Act or"; and 
(ii) in paragraph (5), by striking out "or the policies 
set forth in section 2 of this Act"; and 
(B) in subsection (e), by striking out "the policies of 
section 2 and". 
SEC. 1075. MODIFICATION TO THIRD-PARTY LIABILITY TO UNITED 
STATES FOR TORTIOUS INFLICTION OF INJURY OR DIS-
EASE ON MEMBERS OF THE UNIFORMED SERVICES. 
(a) RECOVERY OF PAY AND ALLOWANCES.—The first section of 
Public Law 87-693 (42 U.S.C. 2651) is amended— 
(1) in the first sentence of subsection (a)— 
(A) by inserting "or pay for" after "required by law 
to furnish"; and 
(B) by striking out "or to be furnished" both places 
it appears and inserting in lieu thereof ", to be furnished, 
paid for, or to be paid for"; 
(2) by redesignating subsections (b) and (c) as subsections 
(d) and (e), respectively; 
(3) by inserting after subsection (a), the following new 
subsections: 
"(b) If a member of the uniformed services is injured, or con-
tracts a disease, under circumstances creating a tort liability upon 
a third person (other than or in addition to the United States 
110 STAT. 2662 
PUBLIC LAW 104-201—SEPT. 23, 1996 
and except employers of seamen referred to in subsection (a)) for 
damages for such injury or disease and the member is unable 
to perform the member's regular military duties as a result of 
the injury or disease, the United States shall have a right (independ-
ent of the rights of the member) to recover from the third person 
or an insurer of the third person, or both, the amount equal to 
the total amount of the pay that accrues and is to accrue to 
the member for the period for which the member is unable to 
perform such duties as a result of the injury or disease and is 
not assigned to perform other military duties. 
"(c)(1) If, pursuant to the laws of a State that are applicable 
in a case of a member of the uniformed services who is injured 
or contracts a disease as a result of tortious conduct of a third 
person, there is in effect for such a case (as a substitute or alter-
native for compensation for damages through tort liability) a system 
of compensation or reimbursement for expenses of hospital, medical, 
surgical; or dental care and treatment or for lost pay pursuant 
to a policy of insurance, contract, medical or hospital service agree-
ment, or similar arrangement, the United States shall be deemed 
to be a third-party beneficiary of such a policy, contract, agreement, 
or arrangement. 
"(2) For the purposes of paragraph (1)— 
"(A) the expenses incurred or to be incurred by the United 
States for care and treatment for an injured or diseased member 
as described in subsection (a) shall be deemed to have been 
incurred by the member; 
"(B) the cost to the United States of the pay of the member 
as described in subsection (b) shall be deemed to have been 
pay lost by the member as a result of the injury or disease; 
and 
"(C) the United States shall be subrogated to any right 
or claim that the injured or diseased member or the member's 
guardian, personal representative, estate, dependents, or survi-
vors have under a policy, contract, agreement, or arrangement 
referred to in paragraph (1) to the extent of the reasonable 
value of the care and treatment and the total amount of the 
pay deemed lost under subparagraph (B)."; 
(4) in subsection (d), as redesignated by paragraph (2), 
by inserting "or paid for" after "treatment is furnished"; and 
(5) by adding at the end the following: 
"(0(1) Any amount recovered under this section for medical 
care and related services furnished by a military medical treatment 
facility or similar military activity shall be credited to the appropria-
tion or appropriations supporting the operation of that facility or 
activity, as determined under regulations prescribed by the Sec-
retary of Defense. 
"(2) Any amount recovered under this section for the cost to 
the United States of pay of an injured or diseased member of 
the uniformed services shall be credited to the appropriation that 
supports the operation of the command, activity, or other unit 
to which the member was assigned at the time of the injury or 
illness, as determined under regulations prescribed by the Secretary 
concerned. 
"(g) For the purposes of this section: 
"(1) The term 'uniformed services' has the meaning given 
such term in section 101 of title 10, United States Code. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2663 
"(2) The term 'tortious conduct' includes any tortious 
omission. 
"(3) The term 'pay', with respect to a member of the uni-
formed services, means basic pay, special pay, and incentive 
pay that the member is authorized to receive under title 37, 
United States Code, or any other law providing pay for service 
in the uniformed services. 
"(4) The term 'Secretary concerned' means— 
"(A) the Secretary of Defense, with respect to the Army, 
the Navy, the Air Force, the Marine Corps, and the Coast 
Guard (when it is operating as a service in the Navy); 
"(B) the Secretary of Transportation, with respect to 
the Coast Guard when it is not operating as a service 
in the Navy; 
"(C) the Secretary of Health and Human Services, with 
respect to the commissioned corps of the Public Health 
Service; and 
"(D) the Secretary of Commerce, with respect to the 
commissioned 
corps 
of 
the 
National 
Oceanic 
and 
Atmospheric Administration.". 
(b) CONFORMING AMENDMENTS.—The first section of Public Law 
87-693 (42 U.S.C. 2651) is amended— 
(1) in the first sentence of subsection (a)— 
(A) by inserting "(independent of the rights of the 
injured or diseased person)" after "a right to recover"; and 
(B) by inserting ", or that person's insurer," after "from 
said third person"; 
(2) in subsection (d), as redesignated by subsection (a)(2)— 
(A) by striking out "such right," and inserting in lieu 
thereof "a right under subsections (a), (b), and (c)"; and 
(B) by inserting "or the insurance carrier or other 
entity responsible for the payment or reimbursement of 
medical expenses or lost pay" after "the third person who 
is liable for the injury or disease" each place it appears. 
(c) EFFECTIVE DATE.—The authority to collect pursuant to the 
amendments made by this section shall apply to expenses described 
in the first section of Public Law 87-693 (as amended by this 
section) that are incurred, or are to be incurred, by the United 
States on or after the date of the enactment of this Act, whether 
the event from which the claim arises occurs before, on, or after 
that date. 
Applicability. 
42 u s e 2651 
note. 
SEC. 1076. CHEMICAL 
STOCKPILE 
EMERGENCY 
PREPAREDNESS 
PROGRAM. 
(a) REPORT.—Not later than 120 days after the date of the 
enactment of this Act, the Secretary of the Army shall submit 
to the Committee on Armed Services of the Senate and the Commit-
tee on National Security of the House of Representatives a report 
assessing the implementation and success of the establishment 
of site-specific Integrated Product and Process Teams as a manage-
ment tool for the Chemical Stockpile Emergency Preparedness Pro-
gram. 
(b) CONTINGENT MANDATED REFORMS.—If at the 
end 
of 
the 
120-day period beginning on the date of the enactment of this 
Act the Secretary of the Army and the Director of the Federal 
Emergency 
Management 
Agency have been 
unsuccessful 
in 
Effective date. 
110 STAT. 2664 
PUBLIC LAW 104-201—SEPT. 23, 1996 
implementing a site-specific Integrated Product and Process Team 
with each of the affected States, the Secretary of the Army shall— 
(1) assume full control and responsibility for the Chemical 
Stockpile Emergency Preparedness Program (eliminating the 
role of the Director of the Federal Emergency Management 
Agency as joint manager of the program); 
(2) establish programmatic agreement with each of the 
affected States regarding program requirements, implementa-
tion schedules, training and exercise requirements, and funding 
(to include direct grants for program support); 
(3) clearly define the goals of the program; and 
(4) establish fiscal constraints for the program. 
SEC. 1077. EXEMPTION 
FROM REQUIREMENTS APPLICABLE TO 
SAVINGS ASSOCIATIONS FOR CERTAIN SAVINGS INSTITU-
TIONS SERVING MILITARY PERSONNEL. 
Section 10(m)(3)(F) of the Home Owners' Loan Act (12 U.S.C. 
1467a(m)(3)(F)) is amended— 
(1) in the subparagraph caption, by striking out "ASSOCIA-
TION SERVING TRANSIENT" and 
inserting in lieu 
thereof 
"ASSOCIATIONS SERVING CERTAIN"; 
(2) by striking out "company if—" and all that follows 
through "90 percent" and inserting in lieu thereof "company 
if at least 90 percent"; and 
(3) by striking out "officers" both places it appears and 
inserting in lieu thereof "members". 
Fellowships and 
SEC. 1078. IMPROVEMENTS TO NATIONAL SECURITY EDUCATION 
scholarships. 
PROGRAM. 
(a) TEMPORARY REQUIREMENT RELATING TO EMPLOYMENT.— 
Title VII of the Department of Defense Appropriations Act, 1996 
(Public Law 104-61; 109 Stat. 650), is amended in the paragraph 
under the heading "NATIONAL SECURITY EDUCATION TRUST FUND" 
by striking out the proviso. 
(b) GENERAL PROGRAM REQUIREMENTS.—(1) Subparagraph (A) 
of subsection (a)(1) of section 802 of the David L. Boren National 
Security Education Act of 1991 (50 U.S.C. 1902) is amended to 
read as follows: 
"(A) 
awarding 
scholarships 
to 
undergraduate 
students who— 
"(i) are United States citizens in order to enable 
such students to study, for at least one academic 
semester or equivalent term, in foreign countries that 
are critical countries (as determined under section 
803(d)(4)(A)) in those languages and study areas where 
deficiencies exist (as identified in the assessments 
undertaken pursuant to section 806(d)); and 
"(ii) pursuant to subsection (b)(2)(A), enter into 
an agreement to work in a national security position 
or work in the field of higher education in the area 
of study for which the scholarship was awarded;"; and 
(2) Subparagraph (B) of that subsection is amended— 
(A) in clause (i), by inserting "relating to the national 
security interests of the United States" after "international 
fields"; and 
(B) in clause (ii)— 
(i) by striking out "subsection (b)(2)" and inserting 
in lieu thereof "subsection (b)(2)(B)"; and 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2665 
(ii) by striking out "work for an agency or office of 
the Federal Government or in" and inserting in lieu thereof 
"work in a national security position or work in". 
(c) SERVICE AGREEMENT.—(1) Subsection (b) of that section 
is amended in the matter preceding paragraph (1) by striking 
out ", or of scholarships" and all that follows through "12 months 
or more," and inserting in lieu thereof "or any scholarship". 
(2) Paragraph (2) of that subsection is amended to read as 
follows: 
' 
"(2) will— 
"(A) not later than eight years after such recipient's 
completion of the study for which scholarship assistance 
was provided under the program, and in accordance with 
regulations issued by the Secretary— 
"(i) work in a national security position for a period 
specified by the Secretary, which period shall be no 
longer than the period for which scholarship assistance 
was provided; or 
(ii) if the recipient demonstrates to the Secretary 
(in accordance with such regulations) that no national 
security position is available, work in the field of higher 
education in a discipline relating to the foreign country, 
foreign language, area study, or international field of 
study for which the scholarship was awarded, for a 
E
eriod specified by the Secretsiry, which period shall 
e determined in accordance with clause (i); or 
"(B) upon completion of such recipient's education 
under the program, and in accordance with such regula-
tions— 
"(i) work in a national security position for a period 
specified by the Secretary, which period shall be not 
less than one and not more than three times the period 
for which the fellowship assistance was provided; or 
"(ii) if the recipient demonstrates to the Secretary 
(in accordance with such regulations) that no national -
security position is available upon the completion of 
the degree, work in the field of higher education in 
a discipline relating to the foreign country, foreign 
language, area stu(yr, or international field of study 
for which the fellowship was awarded, for a period 
specified by the Secretary, which period shall be estab-
lished in accordance with clause (i); and". 
(d) 
EVALUATION OF PROGRESS IN LANGUAGE SKILLS.—Such 
section is further amended— 
(1) by redesignating subsections (c), (d), and (e) as sub-
sections (d), (e), and (f), respectively; and 
(2) by inserting ^ e r subsection (b) the following new sub-
section (c): 
"(c) EVALUATION OF PROGRESS IN LANGUAGE SKILLS.—The Sec-
retary shall, through the National Security Education Program 
office, administer a test of the foreign language skills of each 
recipient of a scholarship or fellowship under this title before the 
commencement of the study or education for which the scholarship 
or fellowship is awarded and after the completion of such study 
or education. The purpose of these tests is to evaluate the progress 
made by recipients of scholarships and fellowships in developing 
foreign language skills as a result of assistance under this title.". 
110 STAT. 2666 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(e) 
FUNCTIONS 
OF 
THE 
NATIONAL 
SECURITY EDUCATION 
BOARD.—Section 803(d) of that Act (50 U.S.C. 1903(d)) is amended— 
(1) in paragraph (1), by inserting ", including an order 
of priority in such awards that favors individuals expressing 
an interest in national security issues or pursuing a career 
in a national security position" before the period; 
(2) in paragraph (4)— 
(A) in the matter preceding subparagraph (A), by strik-
ing out "Make recommendations" and inserting in lieu 
thereof "After taking into account the annual analyses 
of trends in language, international, and area studies under 
section 806(b)(1), make recommendations"; 
(B) in subparagraph (A), by inserting "and countries 
which are of importance to the national security interests 
of the United States" after "are studying"; and 
(C) in subparagraph (B), by inserting "relating to the 
national security interests of the United States" sifter "sec-
tion 802(a)(1)(B)"; 
(3) by redesignating paragraph (5) as paragraph (8); and 
(4) by inserting after paragraph (4) the following new para-
graphs: 
"(5) Encourage applications for fellowships under this title 
from graduate students having an educational background in 
any academic discipline, particularly in the areas of science 
or technology. 
Records. 
"(6) Provide the Secretary biennially with a list of scholar-
ship recipients and fellowship recipients, including an assess-
ment of their foreign area and language skills, who are 
available to work in a national security position. 
Reports. 
"(7) Not later than 30 days after a scholarship or fellowship 
recipient completes the study or education for which assistance 
was provided under the program, provide the Secretary with 
a report fully describing the foreign area and language skills 
obtained by the recipient as a result of the assistance.". 
(f) NATIONAL SECURITY POSITION DEFINED.—(1) Section 808 
of that Act (50 U.S.C. 1908) is amended by adding at the end 
the following new paragraph: 
"(4) The term 'national security position' means a position— 
"(A) having national security responsibilities in a 
agency or office of the Federal Government that has 
national security responsibilities, as determined under sec-
tion 802(g); and 
"(B) in which the individual in such position makes 
their foreign language skills available to such agency or 
office.". 
(2) Section 802 of that Act (50 U.S.C. 1902), as amended by 
subsection (d)(1) of this section, is further amended by adding 
at the end the following new subsection: 
Records. 
"(g) DETERMINATION OF AGENCIES AND OFFICES OF THE FEDERAL 
GOVERNMENT HAVING NATIONAL SECURITY RESPONSIBILITIES.—(1) 
The Secretary, in consultation with the Board, shall annually deter-
mine and develop a list identifying each agency or office of the 
Federal Government having national security responsibilities at 
which a recipient of a fellowship or scholarship under this title 
will be able to make the recipient's foreign area and language 
skills available to such agency or office. The Secretary shall submit 
the first such list to the Congress and include each subsequent 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2667 
list in the annual report to the Congress, as required by section 
806(b)(6). 
"(2) Notwithstanding section 804, funds may not be made avail-
able from the Fund to carry out this title for fiscal year 1997 
until 30 days after the date on which the Secretary of Defense 
submits to the Congress the first such list required by paragraph 
(1).". 
(3) Section 806(b) of that Act (50 U.S.C. 1906(b)) is amended 
by striking out "and" at the end of paragraph (5), redesignating 
paragraph (6) as paragraph (7), and inserting after paragraph (5) 
the following new paragraph (6): 
"(6) the current list of agencies and offices of the Federal 
Government required to be developed by section 802(g); and". 
(g) REPORT ON PROGRAM.—(1) Not later than six months after 
the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report assessing the improvements to 
the program established under the David L. Boren National Security 
Education Act of 1991 (50 U.S.C. 1901 et seq.) that result from 
the amendments made by this section. 
(2) The report shall include an assessment of the contribution 
of the program, as so improved, in meeting the national security 
objectives of the United States. 
SEC. 1079. AVIATION AND VESSEL WAR RISK INSURANCE. 
(a) AVIATION RISK INSURANCE.—(1) Chapter 931 of title 10, 
United States Code, is amended by adding at the end the following 
new section: 
**§9514. Indemnincation of Department of Transportation 
for losses covered by defense-related 
aviation 
insurance 
"(a) PROMPT INDEMNIFICATION REQUIRED.—(1) In the event of 
a loss that is covered by defense-related aviation insurance, the 
Secretary of Defense shall promptly indemnify the Secretary of 
Transportation for the amount of the loss consistent with the indem-
nification agreement between the two Secretaries that underlies 
such insurance. The Secretary of Defense shall make such indem-
nification— 
"(A) in the case of a claim for the loss of an aircraft 
hull, not later than 30 days after the date on which the Sec-
retary of Transportation determines the claim to be payable 
or that amounts are due under the policy that provided the 
defense-related aviation insurance; and 
"(B) in the case of any other claim, not later than 180 
days after the date on which the Secretary of Transportation 
determines the claim to be payable. 
"(2) When there is a loss of an aircraft hull that is (or may 
be) covered by defense-related aviation insurance, the Secretary 
of Transportation may make, during the period when a claim for 
such loss is pending with the Secretary of Transportation, any 
required periodic payments owed by the insured party to a lessor 
or mortgagee of such aircraft. Such payments shall commence not 
later than 30 days following the date of the presentment of the 
claim for the loss of the aircraft hull to the Secretary of Transpor-
tation. If the Secretary of Transportation determines that the claim 
is payable, any amount paid under this paragraph arising from 
such claim shall be credited against the amount payable under 
110 STAT. 2668 
PUBLIC LAW 104-201—SEPT. 23, 1996 
the aviation insurance. If the Secretary of Transportation deter-
mines that the claim is not payable, any amount paid under this 
paragraph arising from such claim shall constitute a debt to the 
United States, payable to the insurance fund. Any such amounts 
so returned to the United States shall be promptly credited to 
the fund or account from which the payments were made under 
this paragraph. 
"(b) SOURCE OF FUNDS FOR PAYMENT OF INDEMNITY.—^The Sec-
retary of Defense may pay an indemnity described in subsection 
(a) from any funds available to the Department of Defense for 
operation and maintenance, and such sums as may be necessary 
for payment of such indemnity are hereby authorized to be trans-
ferred to the Secretary of Transportation for such purpose. 
"(c) NOTICE TO CONGRESS.—In the event of a loss that is covered 
by defense-related aviation insurance in the case of an incident 
in which the covered loss is (or is expected to be) in an amount 
in excess of $1,000,000, the Secretary of Defense shall submit 
to Congress— 
"(1) notification of the loss as soon after the occurrence 
of the loss as possible and in no event more than 30 days 
after the date of the loss; and 
Reports. 
"(2) semiannual reports thereafter updating the informa-
tion submitted under paragraph (1) and showing with respect 
to losses arising from such incident the total amount expended 
to cover such losses, the source of those funds, pending litiga-
tion, and estimated total cost to the Government. 
"(d) IMPLEMENTING MATTERS.—(1) Payment of indemnification 
under this section is not subject to section 2214 or 2215 of this 
title or any other provision of law requiring notification to Congress 
before funds may be transferred. 
"(2) Consolidation of claims arising from the same incident 
is not required before indemnification of the Secretary of Transpor-
tation for payment of a claim may be made under this section. 
"(e) 
CONSTRUCTION WITH 
OTHER 
TRANSFER AUTHORITY.— 
Authority to transfer funds under this section is in addition to 
any other authority provided by law to transfer funds (whether 
enacted before, on, or after the date of the enactment of this 
section) and is not subject to any dollar limitation or notification 
requirement contained in any other such authority to transfer funds. 
"(0 ANNUAL REPORT ON CONTINGENT LIABILITIES.—Not later 
than March 1 of each year, the Secretary of Defense shall submit 
to Congress a report setting forth the current amount of the contin-
gent outstanding liability of the United States under the insurance 
program under chapter 443 of title 49. 
"(g) DEFINITIONS.—In this section: 
"(1) DEFENSE-RELATED AVIATION INSURANCE.—^The term 
'defense-related aviation insurance' means aviation insurance 
and reinsurance provided through policies issued by the Sec-
retary of Transportation under chapter 443 of title 49 that 
pursuant to section 44305(b) of that title is provided by that 
Secretary without premium at the request of the Secretary 
of Defense and is covered by an indemnity agreement between 
the Secretary of Transportation and the Secretary of Defense. 
"(2) Loss.—^The term 'loss' includes damage to or destruc-
tion of property, personal injury or death, and other liabilities 
and expenses covered by the defense-related aviation insur-
ance.". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2669 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"9514. Indemnification of Department of Transportation for losses covered by 
defense-related aviation insurance.". 
(b) VESSEL WAR RISK INSURANCE.—(1) Chapter 157 of title 
10, United States Code, is amended by adding after section 2644, 
as redesignated by section 906, the following new section: 
**§2645. Indemniftcation of Department of Transportation 
for losses covered by vessel war risk insurance 
"(a) PROMPT INDEMNIFICATION REQUIRED.—(1) In the event of 
a loss that is covered by vessel war risk insurance, the Secretary 
of Defense shall promptly indemnify the Secretary of Transportation 
for the amount of trie loss consistent with the indemnification 
agreement between the two Secretaries that underlies such insur-
ance. The Secretary of Defense shall make such indemnification— 
"(A) in the case of a claim for the loss of a vessel, not 
later than 90 days after the date on which the Secretary of 
Transportation determines the claim to be payable or that 
amounts are due under the policy that provided the vessel 
war risk insurance; and 
"(B) in the case of any other claim, not later than 180 
days after the date on which on which the Secretary of 
Transportation determines the claim to be payable. 
"(2) When there is a loss of a vessel that is (or may be) 
covered by vessel war risk insurance, the Secretary of Transpor-
tation may make, during the period when a claim for such loss 
is pending with the Secretary of Trginsportation, any required peri-
odic payments owed by the insured party to a lessor or mortgagee 
of such vessel. Such payments shall commence not later than 30 
days following the date of the presentment of the claim for the 
loss of the vessel to the Secretary of Transportation. If the Secretary 
of Transportation determines that the claim is payable, any amount 
paid under this paragraph arising from such claim shall be credited 
against the amount payable under the vessel war risk insurance. 
If the Secretary of Transportation determines that the claim is 
not payable, any amount paid under this paragraph arising from 
such claim shall constitute a debt to the United States, payable 
to the insurance fund. Any such amounts so returned to the United 
States shall be promptly credited to the fund or account from 
which the payments were made under this paragraph. 
"(b) SOURCE OF FUNDS FOR PAYMENT OF INDEMNITY.—The Sec-
retary of Defense may pay an indemnity described in subsection 
(a) from any funds available to the Department of Defense for 
operation and maintenance, and such sums as may be necessary 
for payment of such indemnity are hereby authorized to be trans-
ferred to the Secretary of Transportation for such purpose. 
"(c) DEPOSIT OF FUNDS.—^Any amount transferred to the Sec-
retary of Transportation under this section shall be deposited in, 
and merged with amounts in, the Vessel War Risk Insurance Fund 
as provided in the second sentence of section 1208(a) of the Mer-
chant Marine Act, 1936 (46 U.S.C. App. 1288(a)). 
"(d) NOTICE TO CONGRESS.—In the event of a loss that is 
covered by vessel war risk insurance in the case of an incident 
in which the covered loss is (or is expected to be) in an amount 
in excess of $1,000,000, the Secretary of Defense shall submit 
to Congress— 
110 STAT. 2670 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(1) notification of the loss as soon after the occurrence 
of the loss as possible and in no event more than 30 days 
after the date of the loss; and 
Reports. 
"(2) semiannual reports thereafter updating the informa-
tion submitted under paragraph (1) and showing with respect 
to losses arising from such incident the total amount expended 
to cover such losses, the source of such funds, pending litigation, 
and estimated total cost to the Government. 
"(e) IMPLEMENTING MATTERS.—(1) Payment of indemnification 
under this section is not subject to section 2214 or 2215 of this 
title or any other provision of law requiring notification to Congress 
before funds may be transferred. 
"(2) Consolidation of claims arising from the same incident 
is not required before indemnification of the Secretary of Transpor-
tation for payment of a claim may be made under this section. 
"(f) 
CONSTRUCTION WITH 
OTHER 
TRANSFER AUTHORITY.— 
Authority to transfer funds under this section is in addition to 
any other authority provided by law to transfer funds (whether 
enacted before, on, or after the date of the enactment of this 
section) and is not subject to any dollar limitation or notification 
requirement contained in any other such authority to transfer funds. 
"(g) ANNUAL REPORT ON CONTINGENT LIABILITIES.—^Not later 
than March 1 of each year, the Secretary of Defense shall submit 
to Congress a report setting forth the current amount of the contin-
gent outstanding liability of the United States under the vessel 
war risk insurance program under title XII of the Merchant Marine 
Act, 1936 (46 U.S.C. App. 1281 et seq.). 
"(h) DEFINITIONS.—In this section: 
"(1) VESSEL WAR RISK INSURANCE.—The term Vessel war 
risk insurance' means insurance and reinsurance provided 
through policies issued by the Secretary of Transportation 
under title XII of the Merchant Marine Act, 1936 (46 U.S.C. 
App. 1281 et seq.), that is provided by that Secretary without 
premium at the request of the Secretary of Defense and is 
covered by an indemnity agreement between the Secretary 
of Transportation and the Secretary of Defense. 
"(2) VESSEL WAR RISK INSURANCE FUND.—The term 'Vessel 
War Risk Insurance Fund' means the insurance fund referred 
to in the first sentence of section 1208(a) of the Merchant 
Marine Act, 1936 (46 U.S.C. App. 1288(a)). 
"(3) LOSS.—^The term 'loss' includes damage to or destruc-
tion of property, personal injury or death, and other liabilities 
and expenses covered by the vessel war risk insurance.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding after the item relating to section 2644, 
as added by section 906, the following new item: 
"2645. Indemnification of Department of Transportation for losses covered by vessel 
war risk insurance.". 
Virginia. 
SEC. 1080. DESIGNATION 
OF MEMORIAL AS NATIONAL 
D-DAY 
16 u s e 431 note. 
MEMORIAL. 
(a) DESIGNATION.—The memorial to be constructed by the 
National D-Day Memorial Foundation in Bedford, Virginia, is 
hereby designated as a national memorial to be known as the 
"National D-Day Memorial". The memorial shall serve to honor 
the members of the Armed Forces of the United States who served 
in the liberation of Normandy, France, in June 1944. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2671 
(b) PUBLIC PROCLAMATION.—^The President is requested and 
urged to issue a public proclamation acknowledging the designation 
of the memorial to be constructed by the National D-Day Memorial 
Foundation in Bedford, Virginia, as the National D-Day Memorial. 
(c) MAINTENANCE OF MEMORIAL.—^All expenses for maintenance 
and care of the memorial shall be paid for with non-Federal funds, 
including funds provided by the National D-Day Memorial Founda-
tion. The United States shall not be liable for any expense incurred 
for the maintenance and care of the memorial. 
SEC. 1081. SENSE 
OF CONGRESS 
REGARDING 
SEMICONDUCTOR 
TRADE AGREEMENT BETWEEN UNITED STATES AND 
JAPAN. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The United States and Japan share a long and impor-
tant bilateral relationship which serves as an anchor of peace 
and stability in the Asia Pacific region, an alliance which was 
reaffirmed at the recent summit meeting between President 
Clinton and Prime Minister Hashimoto in Tokyo. 
(2) The Japanese economy has experienced difficulty over 
the past few years, demonstrating that it is no longer possible 
for Japan, the world's second largest economy, to use exports 
as the sole engine of economic growth, but that the Government 
of Japan must promote deregulation of its domestic economy 
in order to increase economic growth. 
(3) Deregulation of the Japanese 
economy 
requires 
government attention to the removal of barriers to imports 
of manufactured goods. 
(4) The United 
States-Japan 
Semiconductor 
Trade 
Agreement has begun the process of deregulation in the semi-
conductor sector and is opening the Japanese market to 
competitive foreign products. 
(5) The United States-Japan Semiconductor Trade Agree-
ment has put in place both govemment-to-government and 
industry-to-industry mechanisms which have played a vital 
role in allowing cooperation to replace conflict in this important 
high technology sector. 
(6) The mechanisms include joint calculation of foreign 
market share, deterrence of dumping, and promotion of indus-
trial cooperation in the design of foreign semiconductor devices. 
(7) Because of these actions under the United States-Japan 
Semiconductor Trade Agreement, the United States and Japan 
today enjoy trade in semiconductors which is mutually bene-
ficial, harmonious, and free from the friction that once 
characterized the semiconductor industry. 
(8) Because of structural barriers in Japan, a gap still 
remains between the share of the world market for semiconduc-
tor products outside Japan that the United States and other 
foreign semiconductor sources are able to capture through 
competitiveness and the share of the Japanese semiconductor 
market that the United States and those other sources are 
able to capture through competitiveness, and that gap is 
consistent across the full range of semiconductor products as 
well as a full range of end-use applications. 
(9) The competitiveness and health of the United States 
semiconductor industry is of critical importance to the overall 
William J. 
Clinton. 
Ryutaro 
Hashimoto. 
110 STAT. 2672 
PUBLIC LAW 104-201—SEPT. 23, 1996 
economic well-being and high-technology defense capabilities 
of the United States. 
(10) The economic interests of both the United States and 
Japan are best served by well functioning, open markets, deter-
rence of dumping, and continuing good cooperative relationships 
in all sectors, including semiconductors. 
(11) A strong and healthy military and political alliance 
between the United States and Japan requires continuation 
of the industrial and economic cooperation promoted by the 
United States-Japan Semiconductor Trade Agreement. 
(12) President Clinton has called on the Government of 
Japan to agree to a continuation of the United States-Japan 
Semiconductor Trade Agreement beyond the current agree-
ment's expiration on July 31, 1996. 
(13) The Government of Japan 
has opposed any 
continuation of the United States-Japan Semiconductor Trade 
Agreement to promote cooperation in United States-Japan semi-
conductor trade. 
(b) SENSE OF CONGRESS.—On the basis of the findings contained 
in subsection (a), it is the sense of Congress that— 
(1) it is regrettable that the Government of Japan has 
refused to consider continuation of the United States-Japan 
Semiconductor Trade Agreement to ensure that cooperation 
continues in the semiconductor sector beyond the expiration 
of the agreement on July 31, 1996; and 
(2) the President should take all necessary and appropriate 
actions to ensure the resumption and extension of the United 
States-Japan Semiconductor Trade Agreement beyond July 31, 
1996. 
(c) DEFINITION.—For purposes of this section, the term "United 
States-Japan Semiconductor Trade Agreement" refers to the agree-
ment between the United States and Japan concerning trade in 
semiconductor products, with arrangement, done by exchange of 
letters at Washington on June 11, 1991. 
10 u s e 168 note. 
SEC. 1082. AGREEMENTS FOR EXCHANGE OF DEFENSE PERSONNEL 
BETWEEN THE UNITED STATES AND FOREIGN COUN-
TRIES. 
(a) AUTHORITY T O ENTER INTO INTERNATIONAL EXCHANGE 
AGREEMENTS.—(1) The Secretary of Defense may enter into inter-
national defense personnel exchange agreements. 
(2) For purposes of this section, an international defense person-
nel exchange agreement is an agreement with the government 
of an ally of the United States or another friendly foreign country 
f.r the exchange of— 
(A) military and civilian personnel of the Department of 
Defense; and 
(B) military and civilian personnel of the defense ministry 
of that foreign government. 
(b) ASSIGNMENT OF PERSONNEL.—(1) Pursuant to an inter-
national defense personnel exchange agreement, personnel of the 
defense ministry of a foreign government may be assigned to posi-
tions in the Department of Defense and personnel of the 
Department of Defense may be assigned to positions in the defense 
ministry of such foreign government. Positions to which exchanged 
personnel are assigned may include positions of instructors. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2673 
(2) An agreement for the exchange of personnel engaged in 
research and development activities may provide for assignment 
of Department of Defense personnel to positions in private industry 
that support the defense ministry of the host foreign government. 
(3) An individual may not be assigned to a position pursuant 
to an international defense personnel exchange agreement unless 
the assignment is acceptable to both governments. 
(c) RECIPROCITY OF PERSONNEL QUALIFICATIONS REQUIRED.— 
Each government shall be required under an international defense 
personnel exchange agreement to provide personnel with qualifica-
tions, training, and skills that are essentially equal to those of 
the personnel provided by the other government. 
(d) PAYMENT OF PERSONNEL COSTS.—(1) Each government shall 
pay the salary, per diem, cost of living, travel costs, cost of language 
or other training, and other costs for its own personnel in accordance 
with the applicable laws and regulations of such government. 
(2) Paragraph (1) does not apply to the following costs: 
(A) The cost of temporary duty directed by the host govern-
ment. 
(B) The cost of training programs conducted to familiarize, 
orient, or certify exchanged personnel regarding unique aspects 
of the assignments of the exchanged personnel. 
(C) Costs incident to the use of the facilities of the host 
government in the performance of assigned duties. 
(e) PROHIBITED CONDITIONS.—No personnel exchanged pursu-
ant to an agreement under this section may take or be required 
to take an oath of allegiance to the host country or to hold an 
official capacity in the government of such country. 
(f) RELATIONSHIP TO OTHER AUTHORITY.—^The requirements in 
subsections (c) and (d) shall apply in the exercise of any authority 
of the Secretaries of the military departments to enter into an 
agreement with the government of a foreign country to provide 
for the exchange of members of the armed forces and military 
personnel of the foreign country. The Secretary of Defense may 
prescribe regulations for the application of such subsections in 
the exercise of such authority. 
SEC. 1083. SENSE OF SENATE REGARDING BOSNIA AND HERZEGOVINA-
It is the sense of the Senate that, notwithstanding any other 
provision of law, in order to maximize the amount of equipment 
provided to the Grovernment of Bosnia and Herzegovina under the 
authority contained in section 540 of the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1996 (Public 
Law 104-107; 110 Stat. 737), the price of the transferred equipment 
shall not exceed the lowest level at which the same or similar 
equipment has been transferred to any other country under any 
other United States Government program. 
SEC. 1084. DEFENSE BURDENSHARING. 
President. 
22 use 1928 
(a) EFFORTS TO INCREASE ALLIED BURDENSHARING.—^The Presi- note, 
dent shall seek to have each nation that has cooperative military 
relations with the United States (including security agreements, 
basing arrangements, or mutual participation in multinational mili-
tary organizations or operations) take one or more of the following 
actions: 
(1) Increase its financial contributions to the payment of 
the nonpersonnel costs incurred by the United States Govern-
ment for stationing United States military personnel in that 
110 STAT. 2674 
PUBLIC LAW 104-201—SEPT. 23, 1996 
nation, with a goal of achieving by September 30, 2000, 75 
percent of such costs. An increase in financial contributions 
by any nation under this paragraph may include the elimination 
of taxes, fees, or other charges levied on United States military 
personnel, equipment, or facilities stationed in that nation. 
(2) Increase its annual budgetary outlays for national 
defense as a percentage of its gross domestic product by 10 
percent or at least to a level commensurate to that of the 
United States by September 30, 1997. 
(3) Increase its annual budgetary outlays for foreign assist-
ance (to promote democratization, economic stabilization, trans-
parency arrangements, defense economic conversion, respect 
for the rule of law, and internationally recognized human 
rights) by 10 percent or at least to a level commensurate 
to that of the United States by September 30, 1997. 
(4) Increase the amount of military assets (including 
personnel, equipment, logistics, support and other resources) 
that it contributes, or would be prepared to contribute, to 
multinational military activities worldwide. 
(b) AUTHORITIES TO ENCOURAGE ACTIONS BY UNITED STATES 
ALLIES.—In seeking the actions described in subsection (a) with 
respect to any nation, or in response to a failure by any nation 
to undertake one or more of such actions, the President may take 
any of the following measures to the extent otherwise authorized 
by law: 
(1) Reduce the end strength level of members of the Armed 
Forces assigned to permanent duty ashore in that nation. 
(2) Impose on that nation fees or other charges similar 
to those that such nation imposes on United States forces 
stationed in that nation. 
(3) Reduce (through rescission, impoundment, or other 
appropriate procedures as authorized by law) the amount the 
United States contributes to the NATO Civil Budget, Military 
Budget, or Security Investment Program. 
(4) Suspend, modify, or terminate any bilateral security 
agreement the United States has with that nation, consistent 
with the terms of such agreement. 
(5) Reduce (through rescission, impoundment, or other 
appropriate procedures as authorized by law) any United States 
bilateral assistance appropriated for that nation. 
(6) Take any other action the President determines to 
be appropriate as authorized by law. 
(c) 
REPORT 
ON 
PROGRESS 
IN 
INCREASING 
ALLIED 
BURDENSHARING.—Not later than March 1, 1997, the Secretary 
of Defense shall submit to Congress a report on— 
(1) steps taken by other nations to complete the actions 
described in subsection (a); 
(2) all measures taken by the President, including those 
authorized in subsection (b), to achieve the actions described 
in subsection (a); and 
(3) the budgetary savings to the United States that are 
expected to accrue as a result of the steps described under 
paragraph (1). 
(d) 
REPORT ON NATIONAL SECURITY BASES FOR FORWARD 
DEPLOYMENT AND BURDENSHARING RELATIONSHIPS.—(1) In order 
to ensure the best allocation of budgetary resources, the President 
shall undertake a review of the status of elements of the United 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2675 
States Armed Forces that are permanently stationed outside the 
United States. The review shall include an assessment of the 
following: 
(A) The alliance requirements that are to be found in 
agreements between the United States and other countries. 
(B) The national security interests that support perma-
nently stationing elements of the United States Armed Forces 
outside the United States. 
(C) The stationing costs associated with the forward deploy-
ment of elements of the United States Armed Forces. 
(D) The alternatives available to forward deployment (such 
as material prepositioning, enhanced airlift and sealift, or joint 
training operations) to meet such alliance requirements or 
national security interests, with such alternatives identified 
and described in detail. 
(E) The costs and force structure configurations associated 
with such alternatives to forward deployment. 
(F) The financial contributions that allies of the United 
States make to common defense efforts (to promote democra-
tization, economic stabilization, transparency arrangements, 
defense economic conversion, respect for the rule of law, and 
internationally recognized human rights). 
(G) The contributions that allies of the United States make 
to meeting the stationing costs associated with the forward 
deployment of elements of the United States Armed Forces. 
(H) The annual expenditures of the United States and 
its allies on nationsd defense, and the relative percentages 
of each nation's gross domestic product constituted by those 
expenditures. 
(2) The President shall submit to Congress a report on the 
review under paragraph (1). The report shall be submitted not 
later than March 1, 1997, in classified and unclassified form. 
(e) REPORT DATE.—Section 1003(c) of PubUc Law 98-515 is 
amended by striking out "each year" and inserting **by March 1, 
1998, and every other year thereafter". 
TITLE XI—NATIONAL IMAGERY AND 
MAPPING AGENCY 
Sec. 1101. Short title. 
Sec. 1102. Findings. 
Sec. 1103. Role of Director of Central Intelligence in appointment and evaluation 
of certain intelligence officials. 
Subtitle A—Establishment of Agency 
Sec. 1111. Establishment. 
Sec. 1112. Missions and authority. 
Sec. 1113. Transfers of personnel and assets. 
Sec. 1114. Compatibility with authority under the National Security Act of 1947. 
Sec. 1115. Creditable civilian service for career conditional employees of the 
Defense Mapping Agency. 
Sec. 1116. Saving provisions. 
Sec. 1117. Definitions. 
Sec. 1118. Authorization of appropriations. 
Subtitle B—Conforming Amendments and Effective Dates 
Sec. 1121. Redesignation and repeals. 
Sec. 1122. Reference amendments. 
Sec. 1123. Headings and clerical amendments. 
Sec. 1124. Effective date. 
National Imagery 
and Mapping 
Agency Act of 
1996. 
110 STAT. 2676 
PUBLIC LAW 104-201—SEPT. 23, 1996 
10 use 441 note. 
SEC. 1101. SHORT TITLE. 
This title may be cited as the "National Imagery and Mapping 
Agency Act of 1996". 
10 use 441 note. 
SEC. 1102. FINDINGS. 
Congress makes the following findings: 
(1) There is a need within the Department of Defense 
and the Intelligence Community of the United States to provide 
a single agency focus for the growing number and diverse 
types of customers for imagery and geospatial information 
resources within the Government, to ensure visibility and 
accountability for those resources, and to harness, leverage, 
and focus rapid technological developments to serve the 
imagery, imagery intelligence, and geospatial information cus-
tomers. 
(2) There is a need for a single Grovemment agency to 
solicit and advocate the needs of that growing and diverse 
pool of customers. 
(3) A single combat support agency dedicated to imagery, 
imagery intelligence, and geospatial information could act as 
a foc£d point for support of all imagery intelligence and 
geospatial information customers, including customers in the 
Department of Defense, the Intelligence Community, £ind 
related agencies outside of the Department of Defense. 
(4) Such an agency would best serve the needs of the 
imagery, imagery intelligence, and geospatial information cus-
tomers if it were organized— 
(A) to carry out its mission responsibilities under the 
authority, direction, and control of the Secretary of Defense, 
with the advice of the Chairman of the Joint Chiefs of 
Staff; and 
(B) to carry out its responsibilities to national intel-
ligence customers in accordance with policies and priorities 
established by the Director of Central Intelligence. 
SEC. 1103. ROLE OF DIRECTOR OF CENTRAL INTELLIGENCE IN 
APPOINTMENT AND EVALUATION OF CERTAIN INTEL-
LIGENCE OFFICIALS. 
(a) IN GENERAL.—Section 201 of title 10, United States Code, 
is amended to read as follows: 
**§201. Certain 
intelligence 
officials: 
consultation 
and 
concurrence regarding appointments; evaluation of 
performance 
"(a) CONSULTATION REGARDING APPOINTMENT.—^Before submit-
ting a recommendation to the President regarding the appointment 
of an individual to the position of Director of the Defense Intel-
ligence Agency, the Secretary of Defense shall consult with the 
Director of Central Intelligence regarding the recommendation. 
"(b) CONCURRENCE IN APPOINTMENT.—(1) Before submitting a 
recommendation to the President regarding the appointment of 
an individual to a position referred to in paragraph (2), the Sec-
retary of Defense shall seek the concurrence of the Director of 
Central Intelligence in the recommendation. If the Director does 
not concur in the recommendation, the Secretary may make the 
recommendation to the President without the Director's concur-
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2677 
rence, but shall include in the recommendation a statement that 
the Director does not concur in the recommendation. 
"(2) Paragraph (1) applies to the following positions: 
"(A) The Director of the National Security Agency. 
"(B) The Director of the National Reconnaissance Office. 
"(C) The Director of the National Imagery and Mapping 
Agency. 
"(c) PERFORMANCE EVALUATIONS.—(1) The Director of Central 
Intelligence shall provide annually to the Secretary of Defense, 
for the Secretary's consideration, an evaluation of the performance 
of the individuals holding the positions referred to in paragraph 
(2) in fulfilling their respective responsibilities with regard to the 
National Foreign Intelligence Program. 
"(2) The positions referred to in paragraph (1) are the following: 
"(A) The Director of the National Security Agency. 
"(B) The Director of the National Reconnaissance Office. 
"(C) The Director of the National Imagery and Mapping 
Agency.". 
(b) CLERICAL AMENDMENT.—The item relating to section 201 
in the table of sections at the beginning of subchapter II of chapter 
8 of such title is amended to read as follows: 
"201. Certain intelligence officials: consultation and concurrence regarding appoint-
ments; evaluation of performance.". 
Subtitle A—Establishment of Agency 
SEC. 1111. ESTABLISHMENT. 
10 USC 441 note. 
(a) ESTABLISHMENT.—^There is hereby established in the Depart-
ment of Defense a Defense Agency to be known as the National 
Imagery and Mapping Agency. 
(b) TRANSFER OF FUNCTIONS FROM DEPARTMENT OF DEFENSE 
ENTITIES.—^The missions and functions of the following elements 
of the Department of Defense are transferred to the National 
Imagery and Mapping Agency: 
(1) The Defense Mapping Agency. 
(2) The Central Imagery Office. 
(3) Other elements of the Department of Defense as speci-
fied in the classified annex to this Act. 
(c) TRANSFER OF FUNCTIONS FROM CENTRAL INTELLIGENCE 
AGENCY.—The missions and functions of the following elements 
of the Central Intelligence Agency are transferred to the National 
Imagery and Mapping Agency: 
(1) The National Photographic Interpretation Center. 
(2) Other elements of the Central Intelligence Agency as 
specified in the classified annex to this Act. 
(d) PRESERVATION OF LEVEL AND QUALITY OF IMAGERY INTEL-
LIGENCE SUPPORT TO ALL-SOURCE ANALYSIS AND PRODUCTION.— 
In managing the establishment of the National Imagery and Map-
ping Agency, the Secretary of Defense, in consultation with the 
Director of Central Intelligence, shall ensure that imagery intel-
ligence support provided to all-source analysis and production is 
in no way degraded or compromised. 
SEC. 1112. MISSIONS AND AUTHORITY. 
(a) AGENCY CHARTER.—Part I of subtitle A of title 10, United 
States Code, is amended— 
110 STAT. 2678 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(1) by redesignating chapter 22 as chapter 23; and 
(2) by inserting after chapter 21 the following new 
chapter 22: 
"CHAPTER 22—NATIONAL IMAGERY AND MAPPING 
AGENCY 
"Subchapter 
Sec. 
"I. Missions and Authority 
441 
"II. Maps, Charts, and Geodetic Products 
451 
"III. Personnel Management 
461 
"IV. Definitions 
467 
"SUBCHAPTER I—MISSIONS AND AUTHORITY 
"Sec. 
"441. Establishment. 
"442. Missions. 
"443. Imagery intelligence and geospatial information: support for foreign countries. 
"444. Support from Central Intelligence Agency. 
"445. Protection of agency identifications and organizational information. 
''§441. Establishment 
"(a) ESTABLISHMENT.—^The National Imagery and Mapping 
Agency is a combat support agency of the Department of Defense 
and has significant national missions. 
"(b) DIRECTOR.—(1) The Director of the National Imagery and 
Mapping Agency is the head of the agency. 
"(2) Upon a vacancy in the position of Director, the Secretary 
of Defense shall recommend to the President an individual for 
appointment to the position. 
"(3) If an officer of the armed forces on active duty is appointed 
to the position of Director, the position shall be treated as having 
been designated by the President as a position of importance and 
responsibility for purposes of section 601 of this title and shall 
carry the grade of lieutenant general, or, in the case of an officer 
of the Navy, vice admiral. 
"(c) DIRECTOR OF CENTRAL INTELLIGENCE COLLECTION TASKING 
AUTHORITY.—Unless otherwise directed by the President, the Direc-
tor of Central Intelligence shall have authority (except as otherwise 
agreed by the Director and the Secretary of Defense) to— 
"(1) approve collection requirements levied on national 
imagery collection assets; 
"(2) determine priorities for such requirements; and 
"(3) resolve conflicts in such priorities. 
"(d) AVAILABILITY AND CONTINUED IMPROVEMENT OF IMAGERY 
INTELLIGENCE SUPPORT TO ALL-SOURCE ANALYSIS AND PRODUCTION 
FUNCTION.—The Secretary of Defense, in consultation with the 
Director of Central Intelligence, shall take all necessary steps to 
ensure the full availability and continued improvement of imagery 
intelligence support for all-source analysis and production. 
*'§ 442. Missions 
"(a) NATIONAL SECURITY MISSIONS.—(1) The National Imagery 
and Mapping Agency shall, in support of the national security 
objectives of the United States, provide the following: 
"(A) Imagery. 
"(B) Imagery intelligence. 
"(C) Geospatial information. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2679 
"(2) Imagery, intelligence, and information provided in carrying 
out paragraph (1) shall be timely, relevant, and accurate. 
"(b) NAVIGATION INFORMATION.—^The National Imagery and 
Mapping Agency shall improve means of navigating vessels of the 
Navy and the merchant marine by providing, under the authority 
of the Secretary of Defense, accurate and inexpensive nautical 
charts, sailing directions, books on navigation, and manuals of 
instructions for the use of all vessels of the United States and 
of navigators generally. 
"(c) MAPS, CHARTS, ETC.—^The National Imagery and Mapping 
Agency shall prepare and distribute maps, charts, books, and geo-
detic products as authorized under subchapter II of this chapter. 
"(d) NATIONAL MISSIONS.—^The National Imagery and Mapping 
Agency also has national missions as specified in section 120(a) 
of the National Security Act of 1947. 
"(e) SYSTEMS.—The National Imagery and Mapping Agency 
may, in furtherance of a mission of the Agency, design, develop, 
deploy, operate, and maintain systems related to the processing 
and dissemination of imagery intelligence and geospatial informa-
tion that may be transferred to, accepted or used by, or used 
on behalf of— 
"(1) the armed forces, including any combatant command, 
component of a combatant command, joint task force, or tactical 
unit; or 
"(2) any other department or agency of the United States. 
^§ 443. Imagery intelligence and geospatial information: sup-
port for foreign countries 
"(a) U S E OF APPROPRIATED FUNDS.—The Director of the 
National Imagery and Mapping Agency may use appropriated funds 
available to the National Imagery and Mapping Agency to provide 
foreign countries with imagery intelligence and geospatial informa-
tion support. 
"(b) U S E OF FUNDS OTHER THAN APPROPRIATED FUNDS.—^The 
Director may use funds other than appropriated funds to provide 
foreign countries with imagery intelligence and geospatial informa-
tion support, notwithstanding provisions of law relating to the 
expenditure of funds of the United States, except that— 
"(1) no such funds may be expended, in whole or in part, 
by or for the benefit of the National Imagery and Mapping 
Agency for a purpose for which Congress had previously denied 
funds. 
"(2) proceeds from the sale of imagery intelligence or 
geospatial information items may be used only to purchase 
replacement items similar to the items that are sold; and 
"(3) the authority provided by this subsection may not 
be used to acquire items or services for the principal benefit 
of the United States. 
"(c) ACCOMMODATION PROCUREMENTS.—The authority under 
this section may be exercised to conduct accommodation procure-
ments on behalf of foreign countries. 
"(d) 
COORDINATION WITH 
DIRECTOR OF CENTRAL 
INTEL-
LIGENCE.—^The Director of the Agency shall coordinate with the 
Director of Central Intelligence any action under this section that 
involves imagery intelligence or intelligence products or involves 
providing support to an intelligence or security service of a foreign 
country. 
110 STAT. 2680 
PUBLIC LAW 104-201—SEPT. 23, 1996 
*
*
§ 444. Support from Central Intelligence Agency 
"(a) SUPPORT AUTHORIZED.—^The Director of Central Intel-
ligence may provide support in accordance with this section to 
the Director of the National Imagery and Mapping Agency. The 
Director of the National Imagery and Mapping Agency may accept 
support provided under this section. 
"(b) ADMINISTRATIVE AND CONTRACT SERVICES.—(1) In further-
ance of the national intelligence effort, the Director of Central 
Intelligence may provide administrative and contract services to 
the National Imagery and Mapping Agency as if that agency were 
an organizational element of the Central Intelligence Agency. 
"(2) Services provided under paragraph (1) may include the 
services of security police. For purposes of section 15 of the Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403o), an installation 
of the National Imagery and Mapping Agency that is provided 
security police services under this section shall be considered an 
installation of the Central Intelligence Agency. 
"(3) Support provided under this subsection shall be provided 
under terms and conditions agreed upon by the Secretary of Defense 
and the Director of Central Intelligence. 
"(c) DETAIL OF PERSONNEL.—^The Director of Central Intel-
ligence may detail personnel of the Central Intelligence Agency 
indefinitely to the National Imagery and Mapping Agency without 
regard to any limitation on the duration of interagency details 
of Federal Grovemment personnel. 
"(d) REIMBURSABLE OR NONREIMBURSABLE SUPPORT.—Support 
under this section may be provided and accepted on either a 
reimbursable basis or a nonreimbursable basis. 
"(e) AUTHORITY To TRANSFER FUNDS.—(1) The Director of the 
National Imagery and Mapping Agency may transfer funds avail-
able for that agency to the Director of Central Intelligence for 
the Central Intelligence Agency. 
"(2) The Director of Central Intelligence— 
"(A) may accept funds 
transferred 
under 
paragraph 
(l);and 
"(B) shall expend such funds, in accordance with the 
Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et 
seq.), to provide administrative and contract services or detail 
personnel to the National Imagery and Mapping Agency under 
this section. 
'^§445. Protection of agency identifications and organiza-
tional information 
"(a) UNAUTHORIZED USE OF AGENCY NAME, INITIALS, OR SEAL.— 
(1) Except with the written permission of the Secretary of Defense, 
no person may knowingly use, in connection with any merchandise, 
retail product, impersonation, solicitation, or commercial activity 
in a manner reasonably calculated to convey the impression that 
such use is approved, endorsed, or authorized by the Secretary 
of Defense, any of the following: 
"(A) The words 'National Imagery and Mapping Agency', 
the initials *NIMA', or the seal of the National Imagery and 
Mapping Agency. 
"(B) The words 'Defense Mapping Agency', the initials 
'DMA', or the seal of the Defense Mapping Agency. 
"(C) Any colorable imitation of such words, initials, or 
seals. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2681 
"(2) Whenever it appears to the Attorney General that any 
person is engaged or about to engage in an act or practice which 
constitutes or will constitute conduct prohibited by paragraph (1), 
the Attorney General may initiate a civil proceeding in a district 
court of the United States to enjoin such act or practice. Such 
court shall proceed as soon as practicable to a hearing and deter-
mination of such action and may, at any time before such final 
determination, enter such restraining orders or prohibitions, or 
take such other action as is warranted, to prevent injury to the 
United States or to any person or class of persons for whose protec-
tion the action is brought. 
"SUBCHAPTER II—MAPS, CHARTS, AND GEODETIC 
PRODUCTS 
"Sec. 
"451. Maps, charts, and books. 
"452. Pilot charts. 
"453. Prices of maps, charts, and navigational publications. 
"454. Exchange of mapping, charting, and geodetic data with foreign countries and 
international organizations. 
"455. Maps, charts, and geodetic data: public availability; exceptions. 
"456. Civil actions barred. 
"SUBCHAPTER III—PERSONNEL MANAGEMENT 
"Sec. 
"461. Management rights. 
^§ 461. Management rights 
"(a) SCOPE.—If there is no obligation under the provisions of 
chapter 71 of title 5 for the head of an agency of the United 
States to consult or negotiate with a labor organization on a particu-
lar matter by reason of that matter being covered by a provision 
of law or a Governmentwide regulation, the Director of the National 
Imagery and Mapping Agency is not obligated to consult or negotiate 
with a labor organization on that matter even if that provision 
of law or regulation is inapplicable to the National Imagery and 
Mapping Agency. 
"(b) BARGAINING UNITS.—The National Imagery and Mapping 
Agency shall accord exclusive recognition to a labor organization 
under section 7111 of title 5 only for a bargaining unit that was 
recognized as appropriate for the Defense Mapping Agency on the 
day before the date on which employees and positions of the Defense 
Mapping Agency in that bargaining unit became employees and 
positions of the National Imagery and Mapping Agency under the 
National Imagery and Mapping Agency Act of 1996 (title XI of 
the National Defense Authorization Act for Fiscal Year 1997). 
"(c) TERMINATION OF BARGAINING UNIT COVERAGE OF POSITION 
MODIFIED TO AFFECT NATIONAL SECURITY DIRECTLY.—(1) If 
the 
Director of the National Imagery and Mapping Agency determines 
that the responsibilities of a position within a collective bargaining 
unit should be modified to include intelligence, counterintelligence, 
investigative, or security duties not previously assigned to that 
position and that the performance of the newly assigned duties 
directly affects the national security of the United States, then, 
upon such a modification of the responsibilities of that position, 
the position shall cease to be covered by the collective bargaining 
unit and the employee in that position shall cease to be entitled 
110 STAT. 2682 
PUBLIC LAW 104-201—SEPT. 23, 1996 
to representation by a labor organization accorded exclusive recogni-
tion for that collective bargaining unit. 
"(2) A determination described in paragraph (1) that is made 
by the Director of the National Imagery and Mapping Agency 
may not be reviewed by the Federal Labor Relations Authority 
or any court of the United States. 
'SUBCHAPTER IV—DEFINITIONS 
"Sec. 
"467. Definitions. 
"§ 467. Definitions 
"In this chapter: 
"(1) The term 'function' means any duty, obligation, respon-
sibility, privilege, activity, or program. 
"(2)(A) The term 'imagery' means, except as provided in 
subparagraph (B), a likeness or presentation of any natural 
or manmade feature or related object or activity and the posi-
tional data acquired at the same time the likeness or represen-
tation was acquired, including— 
"(i) products produced by space-based national intel-
ligence reconnaissance systems; and 
"(ii) likenesses or presentations produced by satellites, 
airborne platforms, unmanned aerial vehicles, or other 
similar means. 
"(B) Such term does not include handheld or clandestine 
photography taken by or on behalf of human intelligence collec-
tion organizations. 
"(3) The term 'imagery intelligence' means the technical, 
geographic, and intelligence information derived through the 
interpretation or analysis of imagery and collateral materials. 
"(4) The term 'geospatial information' means information 
that identifies the geographic location and characteristics of 
natural or constructed features and boundaries on the earth 
and includes— 
"(A) statistical data and information derived from, 
among other things, remote sensing, mapping, and survey-
ing technologies; 
"(B) mapping, charting, and geodetic data; and 
"(C) geodetic products, as defined in section 455(c) 
of this title.", 
(b) TRANSFER OF DEFENSE MAPPING AGENCY PROVISIONS.—(1) 
Sections 2792, 2793, 2794, 2795, 2796, and 2798 of title 10, United 
States Code, are transferred to subchapter II of chapter 22 
of such title, as added by subsection (a), inserted in that sequence 
in such subchapter following the table of sections, and redesignated 
in accordance with the following table: 
Section 
Section as 
transferred 
redesignated 
2792 
451 
2793 
452 
2794 
453 
2795 
454 
2796 
455 
2798 
456. 
(2) Sections 451(1), 452, 453, 454, and 455 (in subsections 
(a) and (b)(1)(C)), and 456 of title 10, United States Code, as 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2683 
transferred and redesignated by paragraph (1), are amended by 
striking out "Defense Mapping Agency" each place it appears and 
inserting in lieu thereof "National Imagery and Mapping Agency". 
(c) OVERSIGHT OF AGENCY AS A COMBAT SUPPORT AGENCY.— 
Section 193 of title 10, United States Code, is amended— 
(1) in subsection (d)— 
(A) by striking out the caption and inserting in lieu 
thereof 
"REVIEW OF NATIONAL SECURITY AGENCY AND 
NATIONAL IMAGERY AND MAPPING AGENCY.—"; 
(B) in paragraph (1)— 
(i) by inserting "and the National Imagery and 
Mapping Agency" after "the National Security Agency"; 
and 
(ii) by striking out "the Agency" and inserting in 
lieu thereof "that the agencies"; and 
(C) in paragraph (2), by inserting "and the National 
Imagery and Mapping Agency" after "the National Security 
Agency"; 
(2) in subsection (e)— 
(A) by striking out "DIA AND N S A " in the caption 
and inserting in lieu thereof the following: "DIA, NSA, 
AND NIMA"; and 
(B) by striking out "and the National Security Agency" 
and inserting in lieu thereof ", the National Security 
Agency, and the National Imagery and Mapping Agency"; 
and 
(3) in subsection (f), by striking out paragraph (4) and 
inserting in lieu thereof the following: 
"(4) The National Imagery and Mapping Agency.". 
(d) 
CONSOLIDATION AND STANDARDIZATION OF EXEMPTIONS 
FROM DISCLOSURE OF ORGANIZATIONAL AND PERSONNEL INFORMA-
TION.—Chapter 21 of title 10, United States Code, is amended 
by striking out sections 424 and 425 and inserting in lieu thereof 
the following: 
'^§424. Disclosure of organizational and personnel informa-
tion: exemption for Defense Intelligence Agency, 
National 
Reconnaissance 
OfHce, 
and 
National 
Imagery and Mapping Agency 
"(a) EXEMPTION FROM DISCLOSURE.—Except as required by the 
President or as provided in subsection (c), no provision of law 
shall be construed to require the disclosure of— 
"(1) the organization or any function of an organization 
of the Department of Defense named in subsection (b); or 
"(2) the number of persons employed by or assigned or 
detailed to any such organization or the name, official title, 
occupational series, grade, or salary of any such person. 
"(b) COVERED ORGANIZATIONS.—This section applies to the fol-
lowing organizations of the Department of Defense: 
"(1) The Defense Intelligence Agency. 
"(2) The National Reconnaissance Office. 
"(3) The National Imagery and Mapping Agency. 
"(c) PROVISION OF INFORMATION TO CONGRESS.—Subsection (a) 
does not apply with respect to the provision of information to 
Congress.". 
(e) SPECIAL PRINTING AUTHORITY FOR AGENCY.—(1) Section 
207(a)(2)(B) of the Legislative Branch Appropriations Act, 1993 
110 STAT. 2684 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(Public Law 102-392; 44 U.S.C. 501 note), is amended by inserting 
"National Imagery and Mapping Agency," after "Defense Intel-
ligence Agency,". 
(2) Section 1336 of title 44, United States Code, is amended— 
(A) by striking out "Secretary of the Navy" and inserting 
in lieu thereof "Director of the National Imagery and Mapping 
Agency"; and 
(B) by striking out "United States Naval Oceanographic 
Office" and inserting in lieu thereof "National Imagery and 
Mapping Agency". 
10 use 441 note. 
SEC. 1113. TRANSFERS OF PERSONNEL AND ASSETS. 
(a) PERSONNEL AND ASSETS.—Subject to subsections (b) and 
(c), the personnel, assets, unobligated balances of appropriations 
and authorizations of appropriations, and, to the extent jointly 
determined appropriate by the Secretary of Defense and Director 
of Central Intelligence, obligated balances of appropriations and 
authorizations of appropriations employed, used, held, arising from, 
or available in connection with the missions and functions trans-
ferred under section 1111(b) or section 1111(c) are transferred to 
the National Imagery and Mapping Agency. Transfers of appropria-
tions from the Central Intelligence Agency under this subsection 
shall be made in accordance with section 1531 of title 31, United 
States Code. 
(b) DETERMINATION OF CIA POSITIONS TO BE TRANSFERRED.— 
Not earlier than two years after the effective date of this subtitle, 
the Secretary of Defense and the Director of Central Intelligence 
shall determine which, if any, positions and personnel of the Central 
Intelligence Agency are to be transferred to the National Imagery 
and Mapping Agency. The positions to be transferred, and the 
employees serving in such positions, shall be transferred to the 
National Imagery and Mapping Agency under terms and conditions 
prescribed by the Secretary of Defense and the Director of Central 
Intelligence. 
(c) RULE FOR CIA IMAGERY ACTIVITIES ONLY PARTIALLY TRANS-
FERRED.—If the National Photographic Interpretation Center of the 
Central Intelligence Agency or any imagery-related activity of the 
Central Intelligence Agency authorized to be performed by the 
National Imagery and Mapping Agency is not completely trans-
ferred to the National Imagery and Mapping Agency, the Secretary 
of Defense and the Director of Central Intelligence shall— 
(1) jointly determine which, if any, contracts, leases, prop-
erty, and records employed, used, held, arising from, available 
to, or otherwise relating to such Center or activity is to be 
transferred to the National Imagery and Intelligence Agency; 
and 
(2) provide by written agreement for the transfer of such 
items. 
SEC. 1114. COMPATIBILITY WITH AUTHORITY UNDER THE NATIONAL 
SECURITY ACT O F 1947. 
(a) AGENCY FUNCTIONS.—Paragraph (2) of section 105(b) of 
the National Security Act of 1947 (50 U.S.C. 403-5(b)) is amended 
to read as follows: 
"(2) through the National Imagery and Mapping Agency 
(except as otherwise directed by the President or the National 
Security Council), with appropriate representation from the 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2685 
intelligence community, the continued operation of an effective 
unified organization within the Department of Defense— 
"(A) for carrying out tasking of imagery collection; 
"(B) for the coordination of imagery processing and 
exploitation activities; 
"(C) for ensuring the dissemination of imagery in a 
timely manner to authorized recipients; and 
"(D) notwithstanding any other provision of law, for— 
"(i) prescribing technical architecture and stand-
ards related to imagery intelligence and geospatial 
information and ensuring 
compliance 
with 
such 
architecture and standards; and 
"(ii) developing and fielding systems of common 
concern related to imagery intelligence and geospatial 
information;". 
(b) NATIONAL MISSION.—Title I of such Act (50 U.S.C. 402 
et seq.) is amended by adding at the end the following new section: 
"NATIONAL MISSION OF NATIONAL IMAGERY AND MAPPING AGENCY 
"SEC. 120. (a) IN GENERAL.—In addition to the Department 50USC404e. 
of Defense missions set forth in section 442 of title 10, United 
States Code, the National Imagery and Mapping Agency shall sup-
port the imagery requirements of the Department of State and 
other departments and agencies of the United States outside the 
Department of Defense. 
"(b) REQUIREMENTS AND PRIORITIES.—The Director of Central 
Intelligence shall establish requirements and priorities governing 
the collection of national intelligence by the National Imagery and 
Mapping Agency under subsection (a). 
"(c) CORRECTION OF DEFICIENCIES.—^The Director of Central 
Intelligence shall develop and implement such programs and poli-
cies as the Director and the Secretary of Defense jointly determine 
necessary to review and correct deficiencies identified in the 
capabilities of the National Imagery and Mapping Agency to accom-
plish assigned national missions, including support to the all-source 
analysis and production process. The Director shall consult with 
the Secretary of Defense on the development and implementation 
of such programs and policies. The Secretary shall obtain the advice 
of the Chairman of the Joint Chiefs of Staff regarding the matters 
on which the Director and the Secretary are to consult under 
the preceding sentence.". 
(c) TASKING OF IMAGERY ASSETS.—Title I of such Act is further 
amended by adding at the end the following new section: 
"COLLECTION TASKING AUTHORITY 
"SEC. 121. Unless otherwise directed by the President, the 50USC404f. 
Director of Central Intelligence shall have authority (except as 
otherwise agreed by the Director and the Secretary of Defense) 
to— 
"(1) approve collection requirements levied on national 
imagery collection assets; 
"(2) determine priorities for such requirements; and 
"(3) resolve conflicts in such priorities.". 
110 STAT. 2686 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(d) CLERICAL AMENDMENT.—The table of contents in the first 
section of such Act is Eimended by inserting after the item relating 
to section 109 the following new items: 
"Sec. 120. National mission of National Imagery and Mapping Agency. 
"Sec. 121. Collection tasking authority.". 
10 use 441 note. 
SEC. 1115. CREDITABLE CIVILIAN SERVICE FOR CAREER CONDI-
TIONAL EMPLOYEES OF THE DEFENSE MAPPING AGENCY. 
In the case of an employee of the National Imagery and Map-
ping Agency who, on the day before the effective date of this 
title, was an employee of the Defense Mapping Agency in a career-
conditionsd status, the continuous service of that employee as an 
employee of the National Imagery and Mapping Agency on and 
after such date shall be considered creditable service for the purpose 
of any determination of the career status of the employee. 
10 use 441 note. 
SEC. 1116. SAVING PROVISIONS. 
(a) CONTINUING EFFECT ON LEGAL DOCUMENTS.—All orders, 
determinations, rules, regulations, permits, agreements, inter-
national agreements, grants, contracts, leases, certificates, licenses, 
registrations, privileges, and other administrative actions— 
(1) which have been issued, made, granted, or allowed 
to become effective by the President, any Federal agency or 
official thereof, or by a court of competent jurisdiction, in 
connection with any of the functions which are transferred 
under this title or any function that the National Imagery 
and Mapping Agency is authorized to perform by law, and 
(2) which are in effect at the time this title takes effect, 
or were final before the effective date of this title and are 
to become effective on or after the effective date of this title, 
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with 
law by the President, the Secretary of Defense, the Director of 
the National Imagery and Mapping Agency or other authorized 
official, a court of competent jurisdiction, or by operation of law. 
(b) PROCEEDINGS NOT AFFECTED.—^This title and the amend-
ments made by this title shall not affect any proceedings, including 
notices of proposed rulemaking, or any application for any license, 
permit, certificate, or financial assistance pending before an element 
of the Department of Defense or Central Intelligence Agency at 
the time this title takes effect, with respect to function of that 
element transferred by section 1122, but such proceedings and 
applications shall be continued. Orders shall be issued in such 
proceedings, appeals shall be taken therefrom, and payments shall 
be made pursuant to such orders, as if this title had not been 
enacted, and orders issued in any such proceedings shsdl continue 
in effect until modified, terminated, superseded, or revoked by 
a duly authorized official, by a court of competent jurisdiction, 
or by operation of law. Nothing in this section shall be deemed 
to prohibit the discontinuance or modification of any such proceed-
ing under the same terms and conditions and to the same extent 
that such proceeding could have been discontinued or modified 
if this title had not been enacted. 
10 use 441 note. 
SEC. 1117. DEFINITIONS. 
In this subtitle, the terms "function", "imagery", "imagery intel-
ligence", and "geospatial information" have the meanings given 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2687 
those terms in section 467 of title 10, United States Code, as 
added by section 1112. 
SEC. 1118. AUTHORIZATION OF APPROPRIATIONS. 
Funds are authorized to be appropriated for the National 
Imagery and Mapping Agency for fiscal year 1997 in amounts 
and for purposes, and subject to the terms, conditions, limitations, 
restrictions, and requirements, that are set forth in the Classified 
Annex to this Act. 
Subtitle B—Conforming Amendments and 
Effective Dates 
SEC. 1121. REDESIGNATION AND REPEALS. 
(a) REDESIGNATION.—Chapter 23 of title 10, United States Code 
(as redesignated by section 1112(a)(1)) is amended by redesignating 
the sections in that chapter as sections 481 and 482, respectively. 
(b) REPEAL OF SUPERSEDED LAW.—Chapter 167 of such title, 
as amended by section 1112(b), is repealed. 
SEC. 1122. REFERENCE AMENDMENTS. 
(a) TITLE 5, UNITED STATES CODE.—^Title 5, United States 
Code, is amended as follows: 
(1) CENTRAL IMAGERY OFFICE.—Sections 2302(a)(2)(C)(ii), 
3132(a)(1)(B), 4301(1) (in clause (ii)), 4701(a)(1)(B), 5102(a)(1) 
(in 
clause 
(xi)), 
5342(a)(l)(L), 
6339(a)(1)(E), 
and 
7323(b)(2)(B)(i)(XIII) are amended by striking out "Central 
Imagery Office" and inserting in lieu thereof "National Imagery 
and Mapping Agency". 
(2) 
DIRECTOR, 
CENTRAL 
IMAGERY 
OFFICE.—Section 
6339(a)(2)(E) is amended by striking out "Central Imagery 
Office, the Director of the Central Imagery Office" and inserting 
in lieu thereof "National Imagery and Mapping Agency, the 
Director of the National Imagery and Mapping Agency". 
(b) OTHER LAWS.—The following provisions of law are amended 
by striking out "Central Imagery Office" and inserting in lieu thereof 
"National Imagery and Mapping Agency": 
(1) NATIONAL SECURITY ACT OF 1947.—Section 3(4)(E) of 
the National Security Act of 1947 (50 U.S.C. 401a(4)(E)). 
(2) ETHICS IN GOVERNMENT ACT OF I978.—Section 105(a) 
of the Ethics in Government Act of 1978 (Public Law 
95-521; 5 U.S.C. App. 4). 
5 USC app. 105. 
(3) 
EMPLOYEE 
POLYGRAPH 
PROTECTION 
ACT.—Section 
7(b)(2)(A)(i) of the Employee Polygraph Protection Act of 1988 
(Public Law 100-347; 29 U.S.C. 2006(b)(2)(A)(i)). 
(c) CROSS REFERENCE.—Section 82 of title 14, United States 
Code, is amended by striking out "chapter 167" and inserting in 
lieu thereof "subchapter II of chapter 22". 
SEC. 1123. HEADINGS AND CLERICAL AMENDMENTS. 
(a) TITLE 10, UNITED STATES CODE.— 
(1) The table of chapters at the beginning of subtitle A 
of title 10, United States Code, is amended— 
(A) by striking out the item relating to chapter 22 
and inserting in lieu thereof the following: 
110 STAT. 2688 
PUBLIC LAW 104-201—SEPT. 23, 1996 
**22. National Imagery and Mapping Agency 
441 
"23. Miscellaneous Studies and Reports 
471"; 
and 
(B) by striking out the item relating to chapter 167. 
(2) The table of chapters at the beginning of part I of 
such subtitle is amended by striking out the item relating 
to chapter 22 and inserting in lieu thereof the following: 
**22. National Imagery and Mapping Agency 
441 
"23. Miscellaneous Studies and Reports 
471"; 
(3) The table of chapters at the beginning of part IV of 
such subtitle is amended by striking out the item relating 
to chapter 167. 
(4) The items in the table of sections at the beginning 
of chapter 23 of title 10, United States Code (as redesignated 
by section 1112(a)(1)), are revised so as to reflect the redesigna-
tions made by section 1121(a). 
(b) TITLE 44, UNITED STATES CODE.— 
(1) The heading of section 1336 of title 44, United States 
Code, is amended to read as follows: 
^§ 1336. National Imagery and Mapping Agency: special 
publications'*. 
(2) The item relating to that section in the tables of sections 
at the beginning of chapter 13 of such title is amended to 
read as follows: 
"1336. National Imagery and Mapping Agency: special publications.". 
10 u s e 193 note. 
SEC. 1124. EFFECTIVE DATE. 
This title and the amendments made by this title shall take 
effect on October 1, 1996, or the date of the enactment of this 
Act, whichever is later. 
Reserve Forces 
Revitalization 
Act of 1996. 
TITLE XII—RESERVE FORCES 
REVITALIZATION 
TITLE XII—RESERVE FORCES REVITALIZATION 
Sec. 1201. Short title. 
Sec. 1202. Purpose. 
Subtitle A—Reserve Component Structure 
Sec. 1211. Reserve component commands. 
Sec. 1212. Reserve component chiefs. 
Sec. 1213. Review of active duty and Reserve general and flag officer authoriza-
tions. 
Sec. 1214. Guard and Reserve technicians. 
Subtitle B—Reserve Component Accessibility 
Sec. 1231. Report to Congress on measures to improve National Guard and Reserve 
ability to respond to emergencies. 
Sec. 1232. Report to Congress concerning tax incentives for employers of members 
of Reserve components. 
Sec. 1233. Report to Conp-ess concerning income insurance program for activated 
Reservists. 
Sec. 1234. Report to Congress concerning small business loans for members 
released from Reserve service during contingency operations. 
Subtitle C—^Reserve Forces Sustainment 
Sec. 1251. Report concerning tax deductibility of nonreimbursable expenses. 
Sec. 1252. Authority to pay transient housing charges for members performing 
active duty for training. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2689 
Sec. 1253. Sense of Congress concerning quarters allowance during service on 
active duty for training. 
Sec. 1254. Sense of Congress concerning military leave policy. 
Sec. 1255. Reserve Forces Policy Board. 
Sec. 1256. Report on parity of oenefits for active diity service and Reserve service. 
Sec. 1257. Information on proposed funding for the Gruard and Reserve components 
in future-years defense programs. 
SEC. 1201. SHORT TITLE. 
This title may be cited as the "Reserve Forces Revitalization 
Act of 1996". 
SEC. 1202. PURPOSE. 
The purpose of this title is to revise the basic statutory authori-
ties governing the organization and administration of the reserve 
components of the Armed Forces in order to recognize the realities 
of reserve component partnership in the Total Force and to better 
prepare the American citizen-soldier, sailor, airman, and Marine 
in time of peace for duties in war. 
Subtitle A—Reserve Component Structure 
SEC. 1211. RESERVE COMPONENT COMMANDS. 
(a) ESTABLISHMENT.—(1) Part I of subtitle E of title 10, United 
States Code, is amended by inserting after chapter 1005 the follow-
ing new chapter: 
"CHAPTER 1006—R£SERVE COMPONENT COMMANDS 
10 u s e 10001 
note. 
10 u s e 10001 
note. 
"Sec. 
"10171. United States Army Reserve Command. 
"10172. Naval Reserve Force. 
"10173. Marine Forces Reserve. 
"10174. Air Force Reserve Command. 
"§ 10171. United States Army Reserve Command 
"(a) COMMAND.—^The United States Army Reserve Command 
is a separate command of the Army commanded by the Chief 
of Army Reserve. 
"(b) CHAIN OF COMMAND.—Except as otherwise prescribed by 
the Secretary of Defense, the Secretary of the Army shall prescribe 
the chain of command for the United States Army Reserve Com-
mand. 
"(c) ASSIGNMENT OF FORCES.—^The Secretary of the Army— 
"(1) shall assign to the United States Army Reserve Com-
mand all forces of the Army Reserve in the continental United 
States other than forces assigned to the unified combatant 
command for special operations forces established pursuant 
to section 167 of this title; and 
"(2) except as otherwise directed by the Secretary of 
Defense in the case of forces assigned to carry out functions 
of the Secretary of the Army specified in section 3013 of this 
title, shall assign all such forces of the Army Reserve to the 
commander of the United States Atlantic Command. 
"§ 10172. Naval Reserve Force 
"(a) ESTABLISHMENT OF COMMAND.—The Secretary of the Navy, 
with the advice and assistance of the Chief of Naval Operations, 
shall establish a Naval Reserve Force. The Naval Reserve Force 
shall be operated as a separate command of the Navy. 
110 STAT. 2690 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(b) COMMANDER.—^The Chief of Naval Reserve shall be the 
commander of the Naval Reserve Force. The commander of the 
Naval Reserve Force reports directly to the Chief of Naval Oper-
ations. 
"(c) ASSIGNMENT OF FORCES.—The Secretary of the Navy— 
"(1) shall assign to the Naval Reserve Force specified por-
tions of the Naval Reserve other than forces assigned to the 
unified combatant command for special operations forces estab-
lished pursuant to section 167 of this title; and 
"(2) except as otherwise directed by the Secretary of 
Defense in the case of forces assigned to carry out functions 
of the Secretary of the Navy specified in section 5013 of this 
title, shall assign to the combatant commands all such forces 
assigned to the Naval Reserve Force under paragraph (1) in 
the manner specified by the Secretary of Defense. 
"§ 10173. Marine Forces Reserve 
"(a) ESTABLISHMENT.—The Secretary of the Navy, with the 
advice and assistance of the Commandant of the Marine Corps, 
shall establish in the Marine Corps a command known as the 
Marine Forces Reserve. 
"(b) COMMANDER.—^The Marine Forces Reserve is commanded 
by the Commander, Marine Forces Reserve. The Commander, 
Marine Forces Reserve, reports directly to the Commandant of 
the Marine Corps. 
"(c) ASSIGNMENT OF FORCES.—^The Commandant of the Marine 
Corps— 
"(1) shall assign to the Marine Forces Reserve the forces 
of the Marine Corps Reserve stationed in the continental United 
States other than forces assigned to the unified combatant 
command for special operations forces established pursuant 
to section 167 of this title; and 
"(2) except as otherwise directed by the Secretary of 
Defense in the case of forces assigned to carry out functions 
of the Secretary of the Navy specified in section 5013 of this 
title, shall assign to the combatant commands (through the 
Marine Corps component commander for each such command) 
all such forces assigned to the Marine Forces Reserve under 
paragraph (1) in the manner specified by the Secretary of 
Defense. 
"§ 10174. Air Force Reserve Command 
"(a) ESTABLISHMENT OF COMMAND.—The Secretary of the Air 
Force, with the advice and assistance of the Chief of Staff of 
the Air Force, shall establish an Air Force Reserve Command. 
The Air Force Reserve Command shall be operated as a separate 
command of the Air Force. 
"(b) COMMANDER.—^The Chief of Air Force Reserve is the Com-
mander of the Air Force Reserve Command. The commander of 
the Air Force Reserve Command reports directly to the Chief of 
Staff of the Air Force. 
"(c) ASSIGNMENT OF FORCES.—The Secretary of the Air Force— 
"(1) shall assign to the Air Force Reserve Command all 
forces of the Air Force Reserve stationed in the continental 
United States other than forces assigned to the unified combat-
ant command for special operations forces established pursuant 
to section 167 of this title; and 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2691 
"(2) except as otherwise directed by the Secretary of 
Defense in the case of forces assigned to carry out functions 
of the Secretary of the Air Force specified in section 8013 
of this title, shall assign to the combatant commands all such 
forces assigned to the Air Force Reserve Command under para-
graph (1) in the manner specified by the Secretary of Defense.". 
(2) The tables of chapters at the beginning of part I of such 
subtitle and at the beginning of such subtitle are each amended 
by inserting after the item relating to chapter 1005 the following 
new item: 
"1006. Reserve Component Commands 
10171". 
(b) CONFORMING REPEAL.—Section 903 of the National Defense 
Authorization Act for Fiscal Year 1991 (10 U.S.C. 3074 note) is 
repealed. 
(c) IMPLEMENTATION SCHEDULE.—Implementation of chapter 
lo use loni 
1006 of title 10, United States Code, as added by subsection (a), "0^. 
shall begin not later than 90 days after the date of the enactment 
of this Act and shall be completed not later than one year after 
such date. 
SEC. 1212. RESERVE COMPONENT CHIEFS. 
(a) CHIEF OF ARMY RESERVE.—Section 3038 of title 10, United 
States Code, is amended by adding at the end the following new 
subsections: 
"(d) BUDGET.—^The Chief of Army Reserve is the official within 
the executive part of the Department of the Army who, subject 
to the authority, direction, and control of the Secretary of the 
Army and the Chief of Staff, is responsible for justification and 
execution of the personnel, operation and maintenance, and 
construction budgets for the Army Reserve. As such, the Chief 
of Army Reserve is the director and functional manager of appro-
priations made for the Army Reserve in those areas. 
"(e) FULL TIME SUPPORT PROGRAM.—The Chief of Army Reserve 
manages, with respect to the Army Reserve, the personnel program 
of the Department of Defense known as the Full Time Support 
Program. 
"(f) ANNUAL REPORT.—(1) The Chief of Army Reserve shall 
submit to the Secretary of Defense, through the Secretary of the 
Army, an annual report on the state of the Army Reserve and 
the ability of the Army Reserve to meet its missions. The report 
shall be prepared in conjunction with the Chief of Staff of the 
Army and may be submitted in classified and unclassified versions. 
"(2) The Secretary of Defense shall transmit the annual report 
of the Chief of Army Reserve under paragraph (1) to Congress, 
together with such comments on the report as the Secretary consid-
ers appropriate. The report shall be transmitted at the same time 
each year that the annual report of the Secretary under section 
113 of this title is submitted to Congress.". 
(b) CHIEF OF NAVAL RESERVE.—(1) Chapter 513 of such title 
is amended by inserting after section 5142a the following new 
section: 
"§ 5143. Office of Naval Reserve: appointment of Chief 
"(a) ESTABLISHMENT OF OFFICE: CHIEF OF NAVAL RESERVE.— 
There is in the executive part of the Department of the Navy, 
on the staff of the Chief of Naval Operations, an Office of the 
29-194 O - 96 - 31 : QL 3 Part 3 
110 STAT. 2692 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Naval Reserve, which is headed by a Chief of Naval Reserve. 
The Chief of Naval Reserve— 
"(1) is the principal adviser on Naval Reserve matters 
to the Chief of Naval Operations; and 
"(2) is the commander of the Naval Reserve Force. 
President. 
"(b) APPOINTMENT.—The President, by and with the advice 
and consent of the Senate, shall appoint the Chief of Naval Reserve 
from officers who— 
"(1) have had at least 10 years of commissioned service; 
"(2) are in a grade above captain; and 
"(3) have been recommended by the Secretary of the Navy. 
"(c) GRADE.—(1) The Chief of Naval Reserve holds office for 
a term determined by the Chief of Naval Operations, normally 
four years, but may be removed for cause at any time. He is 
eligible to succeed himself. 
"(2) The Chief of Naval Reserve, while so serving, has a grade 
above rear admiral (lower half), without vacating the officer's 
permanent grade. 
"(d) BUDGET.—The Chief of Naval Reserve is the official within 
the executive part of the Department of the Navy who, subject 
to the authority, direction, and control of the Secretary of the 
Navy and the Chief of Naval Operations, is responsible for prepara-
tion, justification, and execution of the personnel, operation and 
maintenance, and construction budgets for the Naval Reserve. As 
such, the Chief of Naval Reserve is the director and functional 
manager of appropriations made for the Naval Reserve in those 
areas. 
"(e) ANNUAL REPORT.—(1) The Chief of Naval Reserve shall 
submit to the Secretary of Defense, through the Secretary of the 
Navy, an annual report on the state of the Naval Reserve and 
the ability of the Naval Reserve to meet its missions. The report 
shall be prepared in conjunction with the Chief of Naval Operations 
and may be submitted in classified and unclassified versions. 
"(2) The Secretary of Defense shall transmit the annual report 
of the Chief of Naval Reserve under paragraph (1) to Congress, 
together with such comments on the report as the Secretary consid-
ers appropriate. The report shall be transmitted at the same time 
each year that the annual report of the Secretary under section 
113 of this title is submitted to Congress.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 5142a 
the following new item: 
"5143. Office of Naval Reserve: appointment of Chief.". 
(c) CHIEF OF MARINE FORCES RESERVE.—(1) Chapter 513 of 
such title is amended by inserting after section 5143 (as added 
by subsection (b)) the following new section: 
"§5144. Office of Marine Forces Reserve: appointment of 
Commander 
"(a) ESTABLISHMENT OF OFFICE; COMMANDER, MARINE FORCES 
RESERVE.—^There is in the executive part of the Department of 
the Navy an Office of the Marine Forces Reserve, which is headed 
by the Commander, Marine Forces Reserve. The Commander, 
Marine Forces Reserve, is the principal adviser to the Commandant 
on Marine Forces Reserve matters. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2693 
"(b) APPOINTMENT.—The President, by and with the advice President. 
and consent of the Senate, shall appoint the Commander, Marine 
Forces Reserve, from officers of the Marine Corps who— 
"(1) have had at least 10 years of commissioned service; 
"(2) are in a grade above colonel; and 
"(3) have been recommended by the Secretary of the Navy. 
"(c) TERM OF OFFICE; GRADE.—(1) The Commander, Marine 
Forces Reserve, holds oflTice for a term determined by the Com-
mandant of the Marine Corps, normally four years, but may be 
removed for cause at any time. He is eligible to succeed himself 
"(2) The Commander, Marine Forces Reserve, while so serving, 
has a grade above brigadier general, without vacating the officer's 
permanent grade. 
"(d) ANNUAL REPORT.—(1) The Commander, Marine Forces 
Reserve, shall submit to the Secretary of Defense, through the 
Secretary of the Navy, an annual report on the state of the Marine 
Corps Reserve and the ability of the Marine Corps Reserve to 
meet its missions. The report shall be prepared in conjunction 
with the Commandant of the Marine Corps and may be submitted 
in classified and unclassified versions. 
"(2) The Secretary of Defense shall transmit the annual report 
of the Commander, Marine Forces Reserve, under paragraph (1) 
to Congress, together with such comments on the report as the 
Secretary considers appropriate. The report shall be transmitted 
at the same time each year that the annual report of the Secretary 
under section 113 of this title is submitted to Congress.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 5143 
(as added by subsection (b)) the following new item: 
"5144. Office of Marine Forces Reserve: appointment of Commander.". 
(d) CHIEF OF AIR FORCE RESERVE.—Section 8038 of such title 
is amended by adding at the end the following new subsections: 
"(d) BUDGET.—The Chief of Air Force Reserve is the official 
within the executive part of the Department of the Air Force who, 
subject to the authority, direction, and control of the Secretary 
of the Air Force and the Chief of Staff, is responsible for preparation, 
justification, and execution of the personnel, operation and mainte-
nance, and construction budgets for the Air Force Reserve. As 
such, the Chief of Air Force Reserve is the director and functional 
manager of appropriations made for the Air Force Reserve in those 
areas. 
"(e) FULL TIME SUPPORT PROGRAM.—(1) The Chief of Air Force 
Reserve manages, with respect to the Air Force Reserve, the person-
nel program of the Department of Defense known as the Full 
Time Support Program. 
"(f) ANNUAL REPORT.—(1) The Chief of Air Force Reserve shall 
submit to the Secretary of Defense, through the Secretary of the 
Air Force, an annual report on the state of the Air Force Reserve 
and the ability of the Air Force Reserve to meet its missions. 
The report shall be prepared in conjunction with the Chief of 
Staff of the Air Force and may be submitted in classified and 
unclassified versions. 
"(2) The Secretary of Defense shall transmit the annual report 
of the Chief of Air Force Reserve under paragraph (1) to Congress, 
together with such comments on the report as the Secretary consid-
ers appropriate. The report shall be transmitted at the same time 
110 STAT. 2694 
PUBLIC LAW 104-201—SEPT. 23, 1996 
each year that the annual report of the Secretary under section 
113 of this title is submitted to Congress.". 
(e) CONFORMING AMENDMENT.—Section 641(1)(B) of such title 
is amended by inserting "5143, 5144," after "3038,". 
SEC. 1213. REVIEW OF ACTIVE DUTY AND RESERVE GENERAL AND 
FLAG OFFICER AUTHORIZATIONS. 
(a) REPORT TO CONGRESS.—Not later than six months after 
the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report containing any recommendations 
of the Secretary (together with the rationale of the Secretary for 
the recommendations) concerning the following: 
(1) Revision of the limitations on general and flag officer 
grade authorizations and distribution in grade prescribed by 
sections 525, 526, and 12004 of title 10, United States Code. 
(2) Statutory designation of the positions and grades of 
any additional general and flag officers in the commands and 
offices created by sections 1211 and 1212. 
(b) MATTERS TO BE INCLUDED.—The Secretary shyall include 
in the report under subsection (a) the Secretary's views on whether 
current limitations referred to in subsection (a)— 
(1) permit the Secretaries of the military departments, 
in view of increased requirements for assignment of general 
and flag officers in positions external to their organic services, 
to meet adequately both internal and external requirements 
for general and flag officers; 
(2) adequately recognize the significantly increased role 
of the reserve components in both service-specific and joint 
operations; and 
(3) permit the Secretaries of the military departments and 
the reserve components to assign general and flag officers to 
active and reserve component positions with grades commensu-
rate with the scope of duties and responsibilities of the position. 
(c) EXEMPTIONS FROM ACTIVE-DUTY CEILINGS.—(1) The Sec-
retary shall include in the report under subsection (a) the 
Secretary's recommendations regarding the merits of exempting 
from any active-duty ceiling (established by law or administrative 
action) the following officers: 
(A) Reserve general and flag officers assigned to positions 
specified in the organizations created by this title. 
(B) Reserve general and flag officers serving on active 
duty, but who are excluded from the active-duty list. 
(2) If the Secretary determines under paragraph (1) that any 
Reserve general or flag officers should be exempt from active duty 
limits, the Secretary shall include in the report under subsection 
(a) the Secretary's recommendations for— 
(A) the effective management of those Reserve general 
and flag officers; and 
(B) revision of active duty ceilings so as to prevent an 
increase in the numbers of active general and flag officers 
authorizations due solely to the removal of Reserve general 
and flag officers from under the active duty authorizations. 
(3) If the Secretary determines under paragraph (1) that active 
and reserve general officers on active duty should continue to be 
managed under a common ceiling, the Secretary shall make rec-
ommendations for the appropriate apportionment of numbers for 
general and flag officers among active and reserve ofFicers. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2695 
(d) RESERVE FORCES POLICY BOARD PARTICIPATION.—^The Sec-
retary of Defense shall ensure that the Reserve Forces Policy Board 
participates in the internal Department of Defense process for devel-
opment of the recommendations of the Secretary contained in the 
report under subsection (a). If the Board submits to the Secretary 
any comments or recommendations for inclusion in the report, 
the Secretary shall transmit them to Congress, with the report, 
in the same form as that in which they were submitted to the 
Secretary. 
(e) GAO REVIEW.—^The Comptroller General of the United Reports. 
States shall assess the criteria used by the Secretary of Defense 
to develop recojnmendations for purposes of the report under this 
section and shall submit to Congress, not later than 30 days after 
the date on which the report of the Secretary under this section 
is submitted, a report setting forth the Comptroller General's 
conclusions concerning the adequacy and completeness of the rec-
ommendations made by the Secretary in the report. 
SEC. 1214. GUARD AND RESERVE TECHNICIANS. 
Section 10216 of title 10, United States Code, as amended 
by section 413, is amended— 
(1) by redesignating subsections (a), (b), and (c) as sub-
sections (b), (c), £ind (d), respectively; 
(2) by inserting after the section heading the following 
new subsection (a): 
"(a) IN GENERAL.—^Military technicians are Federal civilian 
employees hired under title 5 and title 32 who are required to 
maintain dual-status as drilling reserve component members as 
a condition of their Federal civilian employment. Such employees 
shall be authorized and accounted for as a separate category of 
dual-status civilian employees, exempt as specified in subsection 
(b)(3) from any general or regulatory requirement for adjustments 
in Department of Defense civilian personnel."; and 
(3) in paragraph (3) of subsection (b), as redesignated by 
paragraph (1), by striking out "in high-priority units and 
organizations specified in paragraph (1)". 
Subtitle B—Reserve Component 
Accessibility 
SEC. 1231. REPORT 
TO CONGRESS 
ON MEASURES 
TO 
IMPROVE 
NATIONAL GUARD AND RESERVE ABILITY TO RESPOND 
TO EMERGENCIES. 
(a) REPORT.—^Not later than six months after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report regarding reserve component responsiveness to 
both domestic emergencies and national contingency operations. 
The report shall set forth the measures taken, underway, and 
projected to be taken to improve the timeliness, adequacy, and 
effectiveness of reserve component responses to such emergencies 
and operations. 
(b) MATTERS RELATED TO RESPONSIVENESS TO DOMESTIC EMER-
GENCIES.—The report shall address the following: 
(1) The need to expand the time period set by section 
12301(b) of title 10, United States Code, which permits the 
110 STAT. 2696 
PUBLIC LAW 104-201—SEPT. 23, 1996 
involuntary recall at any time to active duty of units and 
individuals for up to 15 days per year. 
(2) The recommendations of the 1995 report of the RAND 
Corporation entitled "Assessing the State and Federal Missions 
of the National Guard", as follows: 
(A) That Federal law be clarified and amended to 
authorize Presidential use of the Federal reserves of all 
military services for domestic emergencies and disasters 
without any time constraint. 
(B) That the Secretary of Defense develop and support 
establishment of an appropriate national level compact for 
interstate sharing of resources, including the domestic 
capabilities of the national guards of the States, during 
emergencies and disasters. 
(C) That Federal level contingency stocks be created 
to support the National Guard in domestic disasters. 
(D) That Federal funding and regulatory support be 
provided for Federal-State disaster emergency response 
planning exercises. 
(c) 
MATTERS RELATED TO PRESIDENTIAL RESERVE CALL-UP 
AUTHORITY.—^The report under this section shall specifically address 
matters related to the authority of the President to activate for 
service on active duty units and members of reserve components 
under sections 12301, 12302, and 12304 of title 10, United States 
Code, including— 
(1) whether such authority is adequate to meet the full 
range of reserve component missions for the 21st century, 
particularly with regard to the time periods for which 
such units and members may be on active duty under those 
authorities and the ability to activate both units and individual 
members; and 
(2) whether the three-tiered set of statutory authorities 
(under such sections 12301, 12302, and 12304) should be 
consolidated, modified, or in part eliminated in order to facili-
tate current and future use of Reserve units and individual 
reserve component members for a broader range of missions, 
and, if so, in what manner. 
(d) MATTERS RELATED TO RELEASE FROM ACTIVE DUTY.—^The 
report under this section shall include findings and recommenda-
tions (based upon a review of current policies and procedures) 
concerning procedures for release from active duty of units and 
members of reserve components who have been involuntarily called 
or ordered to active duty under section 12301, 12302, or 12304 
of title 10, United States Code, with specific recommendations 
concerning the desirability of statutory provisions to— 
(1) establish specific guidelines for when it is appropriate 
(or inappropriate) to retain on active duty such reserve compo-
nent units when active component units are available to per-
form the mission being performed by the reserve component 
unit; 
(2) minimize the effects of frequent mobilization of the 
civilian employers, as well as the effects of frequent mobilization 
on recruiting and retention in the reserve components; and 
(3) address other matters relating to the needs of such 
members of reserve components, their employers, and (in the 
case of such members who own businesses) their employees, 
while such members are on active duty. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2697 
(e) RESERVE FORCES POLICY BOARD PARTICIPATION.—The Sec-
retary of Defense shall ensure that the Reserve Forces Policy Board 
participates in the internal Department of Defense process for devel-
opment of the recommendations of the Secretary contained in the 
report under subsection (a). If the Board submits to the Secretary 
any comments or recommendations for inclusion in the report, 
the Secretary shall transmit them to Congress, with the report, 
in the same form as that in which they were submitted to the 
Secretary. 
(f) GAO REVIEW.—The Comptroller General of the United Reports. 
States shall assess the criteria used by the Secretary of Defense 
to develop recommendations for purposes of the report under this 
section and shall submit to Congress, not later than 30 days after 
the date on which the report of the Secretary under this section 
is submitted, a report setting forth the Comptroller General's 
conclusions concerning the adequacy and completeness of the rec-
ommendations made by the Secretary in the report. 
SEC. 1232. REPORT TO CONGRESS CONCERNING TAX INCENTIVES FOR 
EMPLOYERS OF MEMBERS OF RESERVE COMPONENTS. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a 
report setting forth a draft of legislation to provide tax incentives 
to employers of members of reserve components in order to com-
pensate employers for absences of those employees due to required 
training and for absences due to performance of active duty. 
SEC. 1233. REPORT TO CONGRESS CONCERNING INCOME INSURANCE 
PROGRAM FOR ACTIVATED RESERVISTS. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a 
report setting forth legislative recommendations for changes to 
chapter 1214 of title 10, United States Code. Such recommendations 
shall in particular provide, in the case of a mobilized member 
who owns a business, income replacement for that business and 
for employees of that member or business who have a loss of 
income during the period of such activation attributable to the 
activation of the member. 
SEC. 1234. REPORT TO CONGRESS CONCERNING SMALL BUSINESS 
LOANS FOR MEMBERS RELEASED FROM RESERVE SERV-
ICE DURING CONTINGENCY OPERATIONS. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a 
report setting forth a draft of legislation to establish a small busi-
ness loan program to provide members of reserve components who 
are ordered to active duty or active Federal service (other than 
for training) during a contingency operation (as defined in section 
101 of title 10, United States Code) low-cost loans to assist those 
members in retaining or rebuilding businesses that were affected 
by their service on active duty or in active Federal service. 
110 STAT. 2698 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Subtitle C—Reserve Forces Sustainment 
SEC. 1251. REPORT 
CONCERNING 
TAX DEDUCTIBILITY 
OF NON-
REIMBURSABLE EXPENSES. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a 
report setting forth a draft of legislation to restore the tax deduct-
ibility of nonreimbursable expenses incurred by members of reserve 
components in connection with military service. 
SEC. 1252. AUTHORITY TO PAY TRANSIENT HOUSING CHARGES FOR 
MEMBERS PERFORMING ACTIVE DUTY FOR TRAINING. 
Section 404(j)(l) of title 37, United States Code, is amended 
by striking out "annual training duty" and inserting in lieu thereof 
"active duty for training". 
SEC. 1253. SENSE OF CONGRESS CONCERNING QUARTERS ALLOW-
ANCE DURING SERVICE ON ACTIVE DUTY FOR TRAINING. 
It is the sense of Congress that the United States should 
continue to pay members of reserve components appropriate quar-
ters allowances during periods of service on active duty for training. 
SEC. 1254. SENSE OF CONGRESS 
CONCERNING 
MILITARY 
LEAVE 
POLICY. 
It is the sense of Congress that military leave policies in effect 
as of the date of the enactment of this Act with respect to members 
of the reserve components should not be changed. 
SEC. 1255. RESERVE FORCES POLICY BOARD. 
(a) COMMENDATION.—^The Congress commends the Reserve 
Forces Policy Board, created by the Armed Forces Reserve Act 
of 1952 (Public Law 82-476), for its fine work in the past as 
an independent source of advice to the Secretary of Defense on 
all matters pertaining to the reserve components. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that 
the Reserve Forces Policy Board and the reserve forces policy 
committees for the individual branches of the Armed Forces should 
continue to perform the vital role of providing the civilian leadership 
of the Department of Defense with independent advice on matters 
pertaining to the reserve components. 
(c) ANNUAL REPORT OF RESERVE FORCES POLICY BOARD.—Sec-
tion 113(c) of title 10, United States Code, is amended— 
(1) by striking out paragraph (3); 
(2) by redesignating paragraphs (1), (2), and (4) as subpara-
graphs (A), (B), and (C), respectively; 
(3) by inserting "(1)" after "(c)"; 
(4) by inserting "and" at the end of subparagraph (B), 
as redesignated by paragraph (2); and 
(5) by adding at the end the following: 
"(2) At the same time that the Secretary submits the annual 
report under paragraph (1), the Secretary shall transmit to the 
President and Congress a separate report from the Reserve Forces 
Policy Board on the reserve programs of the Department of Defense 
and on any other matters that the Reserve Forces Policy Board 
considers appropriate to include in the report.". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2699 
SEC. 1256. REPORT ON PARITY OF BENEFITS FOR ACTIVE DUTY 
SERVICE AND RESERVE SERVICE. 
No later than six months after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress 
a report providing recommendations for changes in law that the 
Secretary considers necessary, feasible, and affordable to reduce 
the disparities in pay and benefits that occur between active compo-
nent members of the Armed Forces and reserve component members 
as a result of eligibility based on length of time on active duty. 
SEC. 1257. INFORMATION ON PROPOSED FUNDING FOR THE GUARD 
AND RESERVE COMPONENTS IN FUTURE-YEARS DEFENSE 
PROGRAMS. 
(a) IN GENERAL.—(1) Chapter 1013 of title 10, United States 
Code, is amended by adding at the end the following new section: 
^§ 10543. National Guard and reserve component equipment 
procurement and military construction funding: 
inclusion in future-years defense program 
'The Secretary of Defense shall specify in each future-years 
defense program submitted to Congress under section 221 of this 
title the estimated expenditures and the proposed appropriations, 
for each fiscal year of the period covered by that program, for 
the procurement of equipment and for military construction for 
each of the reserve components of the armed forces.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"10543. National Guard and reserve component equipment procurement and mili-
tary construction funding: inclusion in fiiture-years defense program.". 
(b) EFFECTIVE DATE.—Section 10543 of title 10, United States Applicability. 
Code, as added by subsection (a), shall apply with respect to each 
^^^Y^^ ^^^^^ 
fiiture-years defense program submitted to Congress after the date 
of the enactment of this Act. 
TITLE XIII—ARMS CONTROL AND 
RELATED MATTERS 
Subtitle A—^Arms Control, Counterpro- liferation Activities, and Related 
Matters 
Sec. 1301. Extension of counterproliferation authorities. 
Sec. 1302. Limitation on retirement or dismantlement of strategic nuclear delivery 
systems. 
Sec. 1303. Strengthening certain sanctions against nuclear proliferation activities. 
Sec. 1304. Authority to pay certain expenses relating to humanitarian and civic 
assistance for clearance of landmines. 
Sec. 1305. Report on military capabilities of People's Republic of China. 
Sec. 1306. Presidential report regarding weapons proliferation and policies of the 
People's Republic of China. 
Sec. 1307. United States-People's Republic of China Joint Defense Conversion Com-
mission. 
Sec. 1308. Sense of Congress concerning export controls. 
Sec. 1309. Counterproliferation Program Review Committee. 
Sec. 1310. Sense of Congress concerning assisting other countries to improve 
security of fissile material. 
Sec. 1311. Review by Director of Central Intelligence of National Intelligence Esti-
mate 95-19. 
Subtitle B—Commission to Assess the Ballistic Missile Threat to the United 
States 
Sec. 1321. Establishment of Commission. 
note. 
110 STAT. 2700 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Sec. 1322. Duties of Commission. 
Sec. 1323. Report. 
Sec. 1324. Powers. 
Sec. 1325. Commission procedures. 
Sec. 1326. Personnel matters. 
Sec. 1327. Miscellaneous administrative provisions. 
Sec. 1328. Funding. 
Sec. 1329. Termination of the Commission. 
Subtitle 
A—^Arms 
Control, 
Counter-
proliferation 
Activities, 
and 
Related 
Matters 
SEC. 1301. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES. 
(a) ONE-YEAR EXTENSION OF AUTHORITY.—Section 1505 of the 
Weapons of Mass Destruction Control Act of 1992 (title XV of 
Public Law 102-484; 22 U.S.C. 5859a) is amended— 
(1) in subsection (d)(3), by striking out "or" after "fiscal 
year 1995," and by inserting ", or $15,000,000 for fiscal year 
1997" before the period at the end; and 
(2) in subsection (f), by striking out "1996" and inserting 
in lieu thereof "1997". 
(b) FUNDING FLEXIBILITY.—Subsection (d) of such section is 
further amended by adding at the end the following new paragraph: 
"(4)(A) In the event of a significant unforeseen development 
related to the activities of the United Nations Special Commission 
on Iraq for which the Secretary of Defense determines that financial 
assistance under this section is required at a level which would 
result in the total amount of assistance provided under this section 
during the then-current fiscal year exceeding the amount specified 
with respect to that year under paragraph (3), the Secretary of 
Defense may provide such assistance notwithstanding the limitation 
with respect to that fiscal year under paragraph (3). Funds for 
such purpose may be derived from any funds available to the 
Department of Defense for that fiscal year. 
"(B) Financial assistance may be provided under subparagraph 
(A) only after the Secretary of Defense provides notice in writing 
to the committees of Congress named in subsection (e)(2) of the 
significant unforeseen development and of the Secretary's intent 
to provide assistance in excess of the limitation for that fiscal 
year under paragraph (3). However, if the Secretary determines 
in any case that under the specific circumstances of that case 
advEuice notice is not possible, such notice shall be provided as 
soon as possible and not later than 15 days after the date on 
which the assistance is provided. Any notice under this subpara-
graph shall include a description of the development, the amount 
of assistance provided or to be provided, and the source of the 
funds for that assistance.". 
SEC. 1302. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF 
STRATEGIC NUCLEAR DELIVERY SYSTEMS. 
(a) FUNDING LIMITATION.—^Funds available to the Department 
of Defense may not be obligated or expended during fiscal year 
1997 for retiring or dismantling, or for preparing to retire or 
dismantle, any of the following strategic nuclear delivery systems: 
(1) B-52H bomber aircraft. 
(2) Trident ballistic missile submarines. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2701 
(3) Minuteman III intercontinental ballistic missiles. 
(4) Peacekeeper intercontinental ballistic missiles. 
(b) WAIVER AUTHORITY.—If the START II Treaty enters into 
force during fiscal year 1996 or fiscal year 1997, the Secretary 
of Defense may waive the application of the limitation under para-
graphs (2), (3), and (4) of subsection (a) to Trident ballistic missile 
submarines, Minuteman III intercontinental ballistic missiles, and 
Peacekeeper intercontinental ballistic missiles, respectively, to the 
extent that the Secretary determines necessary in order to imple-
ment the treaty. 
(c) FUNDING LIMITATION ON EARLY DEACTIVATION.—(1) If the President. 
limitation under paragraphs (2), (3), and (4) of subsection (a) ceases Reports, 
to apply by reason of a waiver under subsection (b), funds available 
to the Department of Defense may nevertheless not be obligated 
or expended during fiscal year 1997 to implement any agreement 
or understanding to undertake substantial early deactivation of 
a strategic nuclear delivery system specified in subsection (b) until 
30 days after the date on which the President submits to Congress 
a report concerning such actions. 
(2) For purposes of this subsection, a substantial early deactiva-
tion is an action during fiscal year 1997 to deactivate a substantial 
number of strategic nuclear delivery systems specified in subsection 
(b)by— 
(A) removing nuclear warheads from those systems; or 
(B) taking other steps to remove those systems from combat 
status. 
(3) A report under this subsection shall include the following: 
(A) The text of any understanding or agreement between 
the United States and the Russian Federation concerning 
substantial early deactivation of strategic nuclear delivery 
systems under the START II Treaty. 
(B) The plan of the Department of Defense for implement-
ing the agreement. 
(C) An assessment of the Secretary of Defense of the 
adequacy of the provisions contained in the agreement for mon-
itoring and verifying compliance of Russia with the terms of 
the agreement. 
(D) A determination by the President as to whether the 
deactivations to occur under the agreement will be carried 
out in a symmetrical, reciprocal, or equivalent manner. 
(E) An assessment by the President of the effect of the 
proposed early deactivation on the stability of the strategic 
balance and relative strategic nuclear capabilities of the United 
States and the Russian Federation at various stages during 
deactivation and upon completion. 
(d) START II TREATY DEFINED.—For purposes of this section, 
the term "START II Treaty" means the Treaty Between the United 
States of America and the Russian Federation on Further Reduction 
and Limitation of Strategic Offensive Arms, signed at Moscow on 
January 3, 1993, including the following protocols and memorandum 
of understanding, all such documents being integral parts of and 
collectively referred to as the "START II Treaty" (contained in 
Treaty Document 103-1): 
(1) The Protocol on Procedures Governing Elimination of 
Heavy ICBMs and on Procedures Governing Conversion of Silo 
Launchers of Heavy ICBMs Relating to the Treaty Between 
the United States of America and the Russian Federation on 
110 STAT. 2702 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Further Reduction and Limitation of Strategic Offensive Arms 
(also known as the "EUmination and Conversion Protocol"). 
(2) The Protocol on Exhibitions and Inspections of Heavy 
Bombers Relating to the Treaty Between the United States 
and the Russian Federation on Further Reduction and Limita-
tion of Strategic Offensive Arms (also known as the "Exhibitions 
and Inspections Protocol"). 
(3) The Memorandum of Understanding on Warhead 
Attribution and Heavy Bomber Data Relating to the Treaty 
Between the United States of America and the Russian Federa-
tion on Further Reduction and Limitation of Strategic Offensive 
Arms (also known as the "Memorandum on Attribution"). 
(e) RETENTION OF B-52H AIRCRAFT ON ACTIVE STATUS.—(1) 
The Secretary of the Air Force shall maintain in active status 
(including the performance of standard maintenance and upgrades) 
the current fleet of B-52H bomber aircraft. 
Effective Date. 
(2) For purposes of carrying out upgrades of B-52H bomber 
aircraft during fiscal year 1997, the Secretary shall treat the entire 
current fleet of such aircraft as aircraft expected to be maintained 
in active status during the six-year period beginning on October 
1, 1996. 
SEC. 1303. STRENGTHENING CERTAIN SANCTIONS AGAINST NUCLEAR 
PROLIFERATION ACTIVITIES. 
(a) SANCTIONS.—Section 2(b)(4) of the Export-Import Bank Act 
of 1945 (12 U.S.C. 635(b)(4)) is amended to read as follows: 
Reports. 
"(4)(A) If the Secretary of State determines that— 
"(i) any country that has agreed to International 
Atomic Energy Agency nuclear safeguards materially vio-
lates, abrogates, or terminates, after October 26, 1977, 
such safeguards; 
"(ii) any country that has entered into an agreement 
for cooperation concerning the civil use of nuclear energy 
with the United States materially violates, abrogates, or 
terminates, after October 26, 1977, any guarantee or other 
undertaking to the United States made in such agreement; 
"(iii) any country that is not a nuclear-weapon state 
detonates, after October 26, 1977, a nuclear explosive 
device; 
"(iv) any country willfully aids or abets, after June 
29, 1994, any non-nuclear-weapon state to acquire any 
such nuclear explosive device or to acquire unsafeguarded 
special nuclear material; or 
"(v) any person knowingly aids or abets, after the date 
of enactment of the National Defense Authorization Act 
for Fiscal Year 1997, any non-nuclear-weapon state to 
acquire any such nuclear explosive device or to acquire 
unsafeguarded special nuclear material, 
then the Secretary of State shall submit a report to the appro-
priate committees of the Congress and to the Board of Directors 
of the Bank stating such determination and identifying each 
country or person the Secretary determines has so acted. 
"(B)(i) If the Secretary of State makes a determination 
under subparagraph (A)(v) with respect to a foreign person, 
the Congress urges the Secretary to initiate consultations imme-
diately with the government with primary jurisdiction over 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2703 
that person with respect to the imposition of the prohibition 
contained in subparagraph (C). 
"(ii) In order that consultations with that government may 
be pursued, the Board of Directors of the Bank shall delay 
imposition of the prohibition contained in subparagraph (C) 
for up to 90 days if the Secretary of State requests the Board 
to make such delay. Following these consultations, the prohibi-
tion contained in subparagraph (C) shall apply immediately 
unless the Secretary determines and certifies to the Congress 
that that government has taken specific and effective actions, 
including appropriate penalties, to terminate the involvement 
of the foreign person in the activities described in subparagraph 
(A)(v). The Board of Directors of the Bank shall delay the 
imposition of the prohibition contained in subparagraph (C) 
for up to an additional 90 days if the Secretary requests the 
Board to make such additional delay and if the Secretary 
determines and certifies to the Congress that that government 
is in the process of taking the actions described in the preceding 
sentence. 
"(iii) Not later than 90 days after making a determination 
Reports. 
under subparagraph (A)(v), the Secretary of State shall submit 
to the appropriate committees of the Congress a report on 
the status of consultations with the appropriate government 
under this subparagraph, and the basis for any determination 
under clause (ii) that such government has taken specific correc-
tive actions. 
"(C) The Board of Directors of the Bank shall not give 
approval to guarantee, insure, or extend credit, or participate 
in the extension of credit in support of United States exports 
to any country, or to or by any person, identified in the report 
described in subparagraph (A). 
"(D) The prohibition in subparagraph (C) shall not apply 
to approvals to guarantee, insure, or extend credit, or partici-
pate in the extension of credit in support of United States 
exports to a country with respect to which a determination 
is made under clause (i), (ii), (iii), or (iv) of subparagraph 
(A) regarding any specific event described in such clause if 
the President determines and certifies in writing to the Con-
gress not less than 45 days prior to the date of the first 
approval following the determination that it is in the national 
interest for the Bank to give such approvals. 
"(E) The prohibition in subparagraph (C) shall not apply 
to approvals to guarantee, insure, or extend credit, or partici-
pate in the extension of credit in support of United States 
exports to or by a person with respect to whom a determination 
is made under clause (v) of subparagraph (A) regarding any 
specific event described in such clause if— 
"(i) the Secretary of State determines and certifies 
to the Congress that the appropriate government has taken 
the corrective actions described in subparagraph (B)(ii); 
or 
"(ii) the President determines and certifies in writing 
to the Congress not less than 45 days prior to the date 
of the first approval following the determination that— 
"(I) reliable information indicates that— 
"(aa) such person has ceased to aid or abet 
any non-nuclear-weapon state to acquire any 
110 STAT. 2704 
PUBLIC LAW 104-201—SEPT. 23, 1996 
nuclear 
explosive 
device 
or 
to 
acquire 
unsafeguarded special nuclear material; and 
"(bb) steps have been taken to ensure that 
the activities described in item (aa) will not 
resume; or 
"(11) the prohibition would have a serious adverse 
effect on vital United States interests. 
"(F) For purposes of this paragraph: 
"(i) The term 'country' has the meaning given to 'foreign 
state' in section 1603(a) of title 28, United States Code. 
"(ii) The term 'knowingly' is used within the meaning 
of the term 'knowing' in section 104(h)(3) of the Foreign 
Corrupt Practices Act (15 U.S.C. 78dd-2(h)(3)). 
"(iii) The term 'person' means a natural person as 
well as a corporation, business association, partnership, 
society, trust, any other nongovernmental entity, organiza-
tion, or group, and any governmental entity operating as 
a business enterprise, and any successor of any such entity. 
"(iv) The term 'nuclear-weapon state' has the meaning 
given the term in Article IX(3) of the Treaty on the Non-
Proliferation of Nuclear Weapons, signed at Washington, 
London, and Moscow on July 1, 1968. 
"(v) The term 'non-nuclear-weapon state' has the 
meaning given the term in section 830(5) of the Nuclear 
Proliferation Prevention Act of 1994 (Public Law 103-236; 
108 Stat. 521). 
"(vi) The term 'nuclear explosive device' has the 
meaning given the term in section 830(4) of the Nuclear 
Proliferation Prevention Act of 1994 (Public Law 103-236; 
108 Stat. 521). 
"(vii) The term 'unsafeguarded special nuclear material' 
has the meaning given the term in section 830(8) of the 
Nuclear Proliferation Prevention Act of 1994.". 
(b) 
RECOMMENDATIONS TO MAKE NONPROLIFERATION 
LAWS 
President. 
MORE EFFECTIVE.—Not later than 180 days after the date of the 
enactment of this Act, the President shall submit to the Congress 
his recommendations on ways to make the laws of the United 
States more effective in controlling and preventing the proliferation 
of weapons of mass destruction and missiles. The report shall 
identify all sources of Government funds used for such nonprolifera-
tion activities. 
SEC. 1304. AUTHORITY TO PAY CERTAIN EXPENSES RELATING TO 
HUMANITARIAN AND CIVIC ASSISTANCE FOR CLEARANCE 
OF LANDMINES. 
(a) AUTHORITY TO PAY EXPENSES.—Section 401(c) of title 10, 
United States Code, is amended— 
(1) by redesignating paragraph (2) as paragraph (4); and 
(2) by inserting after paragraph (1) the following new para-
graphs: 
"(2) Expenses covered by paragraph (1) include the following 
expenses incurred in providing assistance described in subsection 
(e)(5): 
"(A) Travel, transportation, and subsistence expenses of 
Department of Defense personnel providing such assistance. 
"(B) The cost of any equipment, services, or supplies 
acquired for the purpose of carrying out or supporting the 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2705 
activities described in subsection (e)(5), including any nonlethal, 
individual, or small-team landmine clearing equipment or sup-
plies that are to be transferred or otherwise furnished to a 
foreign country in furtherance of the provision of assistance 
under this section. 
"(3) The cost of equipment, services, and supplies provided 
in any fiscal year under paragraph (2)(B) may not exceed 
$5,000,000.". 
(b) COORDINATION WITH OTHER LAWS.—Section 401(b) of such 
title is amended— 
(1) by inserting "(1)" after "(b)"; and 
(2) by adding at the end the following: 
"(2) Any authority provided under any other provision of law 
to provide assistance that is described in subsection (e)(5) to a 
foreign country shall be carried out in accordance with, and subject 
to, the limitations prescribed in this section. Any such provision 
may be construed as superseding a provision of this section only 
if, and to the extent that, such provision specifically refers to 
this section and specifically identifies the provision of this section 
that is to be considered superseded or otherwise inapplicable under 
such provision.". 
SEC. 1305. REPORT 
ON 
MILITARY 
CAPABILITIES 
OF 
PEOPLE'S 
REPUBLIC OF CHINA. 
(a) REPORT.—The Secretary of Defense shall prepare a report, 
in both classified and unclassified form, on the future pattern 
of military modernization of the People's Republic of China. The 
report shall address both the probable course of military-techno-
logical development in the People's Liberation Army and the 
development of Chinese military strategy and operational concepts. 
(b) MATTERS TO B E INCLUDED.—The report shall include analy-
ses and forecasts of the following: 
(1) Trends that would lead the People's Republic of China 
toward advanced intelligence, surveillance, and reconnaissance 
capabilities, either through a development program or by gain-
ing access to commercial or third-party systems with militarily 
significant capabilities. 
(2) Efforts by the People's Republic of China to develop 
highly accurate and low-observable ballistic and cruise missiles, 
and the investments in infrastructure that would allow for 
production of such weapons in militarily significant quantities, 
particularly in numbers sufficient to conduct attacks capable 
of overwhelming projected defense capabilities in the region. 
(3) Development by the People's Republic of China of 
enhanced command and control networks, particularly those 
capable of battle management that would include long-range 
precision strikes. 
(4) Programs of the People's Republic of China involving 
unmanned aerial vehicles, particularly those with extended 
ranges or loitering times. 
(5) Exploitation by the People's Republic of China of the 
Global Positioning System or other similar systems, including 
commercial land surveillance satellites, for significant military 
purposes, including particularly for increasing the accuracy 
of weapons or the situational awareness of operating forces. 
110 STAT. 2706 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(6) Development by the People's Republic of China of 
capabilities for denial of sea control, such as advanced sea 
mines or improved submarine capabilities. 
(7) Continued development by the People's Republic of 
China of follow-on forces, particularly those capable of rapid 
air or amphibious assault. 
(c) SUBMISSION OF REPORT.—^The report shall be submitted 
to Congress not later than February 1, 1997. 
SEC. 1306. PRESIDENTIAL 
REPORT 
REGARDING 
WEAPONS 
PRO-
LIFERATION AND POLICIES OF THE PEOPLE'S REPUBLIC 
OF CHINA. 
(a) FINDINGS.—^The Congress finds that— 
(1) the People's Republic of China acceded to the Treaty 
on the Non-Proliferation of Nuclear Weapons (hereafter in this 
section referred to as the "NPT") on March 9, 1992; 
(2) the People's Republic of China is not a member of 
the Nuclear Suppliers Group and remains the only major 
nuclear supplier that continues to transfer nuclear technology, 
equipment, and materials to countries that have not agreed 
to the application of safeguards of the International Atomic 
Energy Agency (hereafter in this section referred to as the 
"IAEA") over all of their nuclear materials; 
(3) on June 30, 1995, the United States and 29 other 
members of the Nuclear Suppliers Group notified the Director 
General of the IAEA that the Government of each respective 
country has decided that the controls of that Group should 
not be defeated by the transfer of component parts; 
(4) a state-owned entity in the People's Republic of China, 
the China Nuclear Energy Industry Corporation, has knowingly 
transferred 
specially 
designed 
ring 
magnets 
to 
an 
unsafeguarded uranium enrichment facility in the Islamic 
Republic of Pakistan; 
(5) ring magnets are identified on the Trigger List of the 
Nuclear Suppliers Group as a component of magnetic suspen-
sion bearings which are to be exported only to countries that 
have safeguards of the IAEA over all of their nuclear materials; 
(6) these ring magnets could contribute significantly to 
the ability of the Islamic Republic of Pakistan to produce addi-
tional unsafeguarded enriched uranium, a nuclear explosive 
material; 
(7) the Government of the People's Republic of China has 
transferred nuclear equipment and technology to the Islamic 
Republic of Iran, despite repeated claims by the Grovernment 
of the United States that the Islamic Republic of Iran is engaged 
in clandestine efforts to acquire a nuclear explosive device; 
(8) representatives of the Government of the People's 
Republic of China have repeatedly assured the Government 
of the United States that the People's Republic of China would 
abide by the guidelines of the Missile Technology Control 
Regime (hereafter in this section referred to as the "MTCR"); 
(9) the Government of China has transferred M-11 missiles 
to the Islamic Republic of Pakistan; and 
(10) the M-11 missile conforms to the definition of a 
nuclear-capable missile under the MTCR. 
(b) 
SENSE 
OF THE CONGRESS.—It 
is 
the 
sense 
of 
the 
Congress that— 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2707 
(1) the assistance that the People's Republic of China has 
provided to the Islamic Republic of Iran and to the Islamic 
Republic of Pakistan could contribute to the ability of such 
countries to manufacture nuclear weapons; 
(2) the recent transfer by the People's Republic of China 
of ring magnets to an unsafeguarded uranium enrichment facil-
ity in the Islamic Republic of Pakistan conflicts with China's 
obligations under Articles I and III of the NPT, as well as 
the official nonproliferation policies and assurances by the Peo-
ple's Republic of China and the Islamic Republic of Pakistan 
with respect to the nonproliferation of nuclear weapons and 
nuclear-capable missiles; 
(3) the transfer of M-11 missiles from the People's Republic 
of China to the Islamic Republic of Pakistan is inconsistent 
with longstanding United States Government interpretations 
of assurances from the Government of the People's Republic 
of China with respect to that country's intent to abide by 
the guidelines of the MTCR; 
(4) violations by the People's Republic of China of the 
standards and objectives of the MTCR and global nuclear non-
proliferation regimes have jeopardized the credibility of the 
MTCR and such regimes; 
(5) the MTCR and global nuclear nonproliferation regimes 
require collective international action to impose costs against 
and to withhold benefits from any country, including the Peo-
ple's Republic of China, that engages in activities that are 
contrary to the objectives of those regimes; 
(6) the President should explore with the governments 
of other countries new opportunities for collective action in 
response to activities of any country, including the People's 
Republic of China, that aid or abet the global proliferation 
of weapons of mass destruction or their means of delivery; 
and 
(7) the President should communicate to the Government 
of the People's Republic of China the sense of the Congress 
that the stability and growth of future relations between the 
people, the economies, and the Governments of the United 
States and the People's Republic of China will significantly 
depend upon substantive evidence of cooperation by the Govern-
ment of the People's Republic of China in efforts to halt the 
global proliferation of weapons of mass destruction and their 
means of delivery. 
(c) REPORT.—^Not later than 60 days after the date of the 
enactment of this Act, the President shall submit to the Congress 
a report, in both classified and unclassified form, concerning the 
transfer from the People's Republic of China to the Islamic Republic 
of Pakistan of technology, equipment, or materials important to 
the production of nuclear weapons and their means of delivery. 
The President shall include in the report the following: 
(1) The specific justification of the Secretary of State for 
determining that there was not a sufficient basis for imposing 
sanctions under section 2(b)(4) of the Export-Import Bank Act 
of 1945, as amended by section 825 of the Nuclear Proliferation 
Prevention Act of 1994, by reason of the transfer of ring 
magnets and other technology, equipment, or materials from 
the People's Republic of China to the Islamic Republic of Paki-
stan. 
110 STAT. 2708 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(2) What commitment the United States Government is 
seeking from the People's Republic of China to ensure that 
the People's Republic of China establishes a fully effective 
export control system that will prevent transfers (such as the 
Pakistan sale) from taking place in the future. 
(3) A description of the pledges, assurances, and other 
commitments made by representatives of the Governments of 
the People's Republic of China and the Islamic Republic of 
Pakistan to the Government of the United States since January 
1, 1991, with respect to the nonproliferation of nuclear weapons 
or nuclear-capable missiles, and an assessment of the record 
of compliance with such undertakings. 
(4) Whether, in light of the recent assurances provided 
by the People's Republic of China, the President intends to 
make the certification and submit the report required by section 
902(a)(6)(B) of the Foreign Relations Authorization Act, Fiscal 
Years 1990 and 1991 (22 U.S.C. 2151 note), and make the 
certification and submit the report required by Public Law 
99-183, relating to the approval and implementation of the 
agreement for nuclear cooperation between the United States 
and the People's Republic of China, and, if not, why not. 
(5) Whether the Secretary of State considers the recent 
assurances and clarifications provided by the People's Republic 
of China to have provided sufficient information to allow the 
United States to determine that the People's Republic of China 
is not in violation of paragraph (2) of section 129 of the Atomic 
Energy Act of 1954, as required by Public Law 99-183. 
(6) If the President is unable or unwilling to make the 
certifications and reports referred to in paragraph (4), a descrip-
tion of what the President considers to be the significance 
of the clarifications and assurances provided by the People's 
Republic of China in the course of the recent discussions regard-
ing the transfer by the People's Republic of China of nuclear-
weapon-related equipment to the Islamic Republic of Pakistan. 
(7) A description of the laws, regulations, and procedures 
currently used by the People's Republic of China to regulate 
exports of nuclear technology, equipment, or materials, includ-
ing dual-use goods, and an assessment of the effectiveness 
of such arrangements. 
(8) A description of the current policies and practices of 
other countries in response to the transfer of nuclear and 
missile technology by the People's Republic of China to the 
Islamic Republic of Pakistan and the Islamic Republic of Iran. 
SEC. 1307. UNITED STATES-PEOPLE'S REPUBLIC OF CHINA JOINT 
DEFENSE CONVERSION COMMISSION. 
None of the funds appropriated or otherwise available for the 
Department of Defense for fiscal year 1997 or any prior fiscal 
year may be obligated or expended for any activity associated with 
the United States-People's Republic of China Joint Defense Conver-
sion Commission until 15 days after the date on which the first 
semiannual report required by section 1343 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 487) is received by Congress. 
SEC. 1308. SENSE OF CONGRESS CONCERNING EXPORT CONTROLS. 
(a) FINDINGS.—The Congress makes the following findings: 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2709 
(1) Export controls are a part of a comprehensive response 
to nationsd security threats. The export of a United States 
commodity or technology should be restricted in cases in which 
the export of the commodity or technology would increase the 
threat to the national security of the United States or would 
be contrary to the nonproliferation goals or foreign policy 
interests of the United States. 
(2) The export of certain commodities and technology may 
adversely affect the national security and foreign policy of 
the United States by making a significant contribution to the 
military potential of countries or by enhancing the capability 
of countries to design, develop, test, produce, stockpile, or use 
weapons of mass destruction and missile delivery systems, and 
other significant military capabilities. Therefore, the adminis-
tration of export controls should emphasize the control of these 
exports. 
(3) The acquisition of sensitive commodities and tech-
nologies by those countries and end users whose actions or 
policies run counter to United States national security or for-
eign policy interests may enhance the military capabilities of 
those countries, particularly their ability to design, develop, 
test, produce, stockpile, use, and deliver nuclear, chemical, 
and biological weapons £uid missile delivery systems, and other 
significant military capabilities. This enhancement threatens 
the security of the United States and its allies. The availability 
to countries and end users of items that contribute to military 
capabilities or the proliferation of weapons of mass destruction 
is a fundamental concern of the United States and should 
be eliminated through deterrence, negotiations, and other 
appropriate means whenever possible. 
(4) The nationgd security of the United States depends 
not only on wise foreign policies and a strong defense, but 
also a vibrant national economy. To be truly effective, export 
controls should be applied uniformly by all suppliers. 
(5) On November 8, 1995, the President continued the 
national emergency declared in Executive Order No. 12938 
of November 14, 1994, "with respect to the unusual and extraor-
dinary threat to the national security, foreign policy, and 
economy of the United States posed by the proliferation of 
nuclear, biological, and chemical weapons and the means of 
delivering such weapons". 
(6) A successor regime to COCOM (the Coordinating 
Committee for Multilateral Export Controls) has not been estab-
lished. Currently, each nation is determining independently 
which dual-use military items, if any, will be controlled for 
export. 
(7) The United States should play a leading role in promot-
ing transparency and responsibility with regard to the transfers 
of sensitive dual-use goods and technologies. 
(b) SENSE OF CONGRESS.—It is the sense of the Congress that— 
(1) establishing an international export control regime, 
empowered to control exports of dual-use technology, is criti-
cally important and should be a top priority for the United 
States; and 
(2) the United States should strongly encourage its allies 
and other friendly countries to— 
110 STAT. 2710 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(A) adopt export controls that are the same or similar 
to the export controls imposed by the United States on 
items on the Commerce Control List; 
(B) 
strengthen 
enforcement 
of 
their 
export 
controls; and 
(C) explore the use of unilateral export controls where 
the possibility exists that an export could contribute to 
the enhancement of military capabilities or proliferation 
described in paragraphs (3) and (5) of subsection (a). 
SEC. 1309. COUNTERPROUFERATION PROGRAM REVIEW COMMITTEE. 
(a) COMPOSITION OF THE COMMITTEE.—Subsection (a) of section 
1605 of the National Defense Authorization Act for Fiscal Year 
1994 (22 U.S.C. 2751 note) is amended by adding at the end 
the following new paragraph: 
"(5) The Assistant to the Secretary of Defense for Nuclear 
and Chemical and Biological Defense Programs shall serve as execu-
tive secretary to the committee.". 
(b) 
ADDITIONAL 
PURPOSE 
OF THE COMMITTEE.—Subsection 
(b)(1)(A) of such section is amended by inserting "and efforts, includ-
ing efforts to stem the proliferation of weapons of mass destruction 
and to negate paramilitary and terrorist threats involving weapons 
of mass destruction" after "counterproliferation policy". 
(c) FOUR-YEAR EXTENSION OF THE COMMITTEE.—Subsection (f) 
of such section is amended by striking out "September 30, 1996" 
and inserting in lieu thereof "September 30, 2000". 
(d) REPORTS ON COUNTERPROLIFERATION ACTIVITIES AND PRO-
GRAMS.—Section 1503 of the National Defense Authorization Act 
for Fiscal Year 1995 (22 U.S.C. 2751 note) is amended— 
(1) in subsection (a)— 
(A) by striking out "REPORT REQUIRED.—(1) Not later 
than May 1, 1995 and May 1, 1996, the Secretary" and 
inserting in lieu thereof "ANNUAL REPORT REQUIRED.— 
Not later than May 1 of each year, the Secretary"; and 
(B) by striking out paragraph (2); and 
(2) by adding at the end the following new subsections: 
"(d) REVIEW COMMITTEE CHARTER DEFINED.—For purposes of 
this section, the term 'Review Committee charter' means section 
1605 of the National Defense Authorization Act for Fiscal Year 
1994 (22 U.S.C. 2751 note). 
"(e) TERMINATION OF REQUIREMENT.—The final report required 
under subsection (a) is the report for the year following the year 
in which the Counterproliferation Program Review Committee 
established under the Review Committee Charter ceases to exist.". 
SEC. 1310. SENSE OF CONGRESS CONCERNING ASSISTING 
OTHER 
COUNTRIES 
TO 
IMPROVE 
SECURITY 
OF 
FISSILE 
MATERIAL. 
(a) FINDINGS.—Congress finds the following: 
(1) With the end of the Cold War, the world is faced 
with the need to manage the dismantling of vast numbers 
of nuclear weapons and the disposition of the fissile materials 
that they contain. 
(2) If recently agreed reductions in nuclear weapons are 
fully implemented, tens of thousands of nuclear weapons, 
containing a hundred tons or more of plutonium and many 
hundreds of tons of highly enriched uranium, will no longer 
be needed for military purposes. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2711 
(3) Plutonium and highly enriched uranium are the essen-
tial ingredients of nuclear weapons. 
(4) Limits on access to plutonium and highly enriched 
uranium are the primary technical barrier to acquiring nuclear 
weapons capability in the world today. 
(5) Several kilograms of plutonium, or several times that 
amount of highly enriched uranium, are sufficient to make 
a nuclear weapon. 
(6) Plutonium and highly enriched uranium will continue 
to pose a potential threat for as long as they exist. 
(7) Action is required to secure and account for plutonium 
and highly enriched uranium. 
(8) It is in the national interest of the United States to— 
(A) minimize the risk that fissile materials could be 
obtained by unauthorized parties; 
(B) minimize the risk that fissile materials could be 
reintroduced into the arsenals from which they came, halt-
ing or reversing the arms reduction process; and 
(C) strengthen the national and international control 
mechanisms and incentives designed to ensure continued 
arms reductions and prevent the spread of nuclear 
weapons. 
(b) SENSE OF CONGRESS.—In Hght of the findings contained 
in subsection (a), it is the sense of Congress that the United States 
has a national security interest in assisting other countries to 
improve the security of their stocks of fissile material. 
SEC. 1311. REVIEW BY DIRECTOR OF CENTRAL INTELLIGENCE OF 
NATIONAL INTELLIGENCE ESTIMATE 95-19. 
(a) REVIEW.—^The Director of Central Intelligence shall conduct 
a review of the underlying assumptions and conclusions of the 
National Intelligence Estimate designated as NIE 95-19 and 
entitled "Emerging Missile Threats to North America During the 
Next 15 Years", released by the Director in November 1995. 
(b) METHODOLOGY FOR REVIEW.—^The Director shall carry out 
the review under subsection (a) through a panel of independent, 
nongovernmental individuals with appropriate expertise and experi-
ence. Such a panel shall be convened by the Director not later 
than 45 days after the date of the enactment of this Act. 
(c) REPORT.—The Director shall submit the findings resulting 
from the review under subsection (a), together with any comments 
of the Director on the review and the findings, to Congress not 
later than three months after the appointment of the Commission 
under section 1321. 
Subtitle B—Commission To Assess the Bal-
listic Missile Threat to the United States 
SEC. 1321. ESTABLISHMENT OF COMMISSION. 
(a) ESTABLISHMENT.—^There is hereby established a commission 
to be known as the "Commission To Assess the Ballistic Missile 
Threat to the United States" (hereafter in this subtitle referred 
to as the "Commission"). 
(b) COMPOSITION.—The Commission shall be composed of nine 
members appointed by the Director of Central Intelligence. In select-
110 STAT. 2712 
PUBLIC LAW 104-201—SEPT. 23, 1996 
ing individuals for appointment to the Commission, the Director 
should consult with— 
(1) the Speaker of the House of Representatives concerning 
the appointment of three of the members of the Commission; 
(2) the majority leader of the Senate concerning the 
appointment of three of the members of the Commission; and 
(3) the minority leader of the House of Representatives 
and the minority leader of the Senate concerning the appoint-
ment of three of the members of the Commission. 
(c) QUALIFICATIONS.—^Members of the Commission shall be 
appointed from among private United States citizens with knowl-
edge and expertise in the political and military aspects of prolifera-
tion of ballistic missiles and the ballistic missile threat to the 
United States. 
(d) CHAIRMAN.—The Speaker of the House of Representatives, 
after consultation with the majority leader of the Senate and the 
minority leaders of the House of Representatives and the Senate, 
shall designate one of the members of the Commission to serve 
as chairman of the Commission. 
(e) PERIOD OF APPOINTMENT; VACANCIES.—Members shall be 
appointed for the life of the Commission. Any vacancy in the 
Commission shall be filled in the same manner as the original 
appointment. 
(0 SECURITY CLEARANCES.—^All members of the Commission 
shall hold appropriate security clearances. 
(g) INITIAL ORGANIZATION REQUIREMENTS.—(1) All appoint-
ments to the Commission shall be made not later than 45 days 
after the date of the enactment of this Act. 
(2) The Commission shall convene its first meeting not later 
than 30 days after the date as of which all members of the Commis-
sion have been appointed, but not earlier than October 15, 1996. 
SEC. 1322. DUTIES OF COMMISSION. 
(a) REVIEW OF BALLISTIC MISSILE THREAT.—^The Commission 
shall assess the nature and magnitude of the existing and emerging 
ballistic missile threat to the United States. 
(b) COOPERATION FROM GOVERNMENT OFFICIALS.—In carrying 
out its duties, the Commission should receive the full and timely 
cooperation of the Secretary of Defense, the Director of Central 
Intelligence, and any other United States Government official 
responsible for providing the Commission with analyses, briefings, 
and other information necessary for the fulfillment of its respon-
sibilities. 
SEC. 1323. REPORT. 
The Commission shall, not later than six months after the 
date of its first meeting, submit to the Congress a report on its 
findings and conclusions. 
SEC. 1324. POWERS. 
(a) HEARINGS.—The Commission or, at its direction, any panel 
or member of the Commission, may, for the purpose of carrying 
out the provisions of this subtitle, hold hearings, sit and act at 
times and places, take testimony, receive evidence, and administer 
oaths to the extent that the Commission or any panel or member 
considers advisable. 
(b) INFORMATION.—^The Commission may secure directly from 
the Department of Defense, the Central Intelligence Agency, and 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2713 
any other Federal department or agency information that the 
Commission considers necessary to enable the Commission to carry 
out its responsibilities under this subtitle. 
SEC. 1325. COMMISSION PROCEDURES. 
(a) MEETINGS.—The Commission shall meet at the call of the 
Chairman. 
(b) QUORUM.—(1) Five members of the Commission shall con-
stitute a quorum other than for the purpose of holding hearings. 
(2) The Commission shall act by resolution agreed to by a 
majority of the members of the Commission. 
(c) COMMISSION.—^The Commission may establish panels com-
posed of less than full membership of the Commission for the 
purpose of carrying out the Commission's duties. The actions of 
each such panel shall be subject to the review and control of 
the Commission. Any findings and determinations made by such 
a panel shall not be considered the findings and determinations 
of the Commission unless approved by the Commission. 
(d) AUTHORITY OF INDIVIDUALS TO ACT FOR COMMISSION.— 
Any member or agent of the Commission may, if authorized by 
the Commission, take any action which the Commission is author-
ized to take under this subtitle. 
SEC. 1326. PERSONNEL MATTERS. 
(a) PAY OF MEMBERS.—Members of the Commission shall serve 
without pay by reason of their work on the Commission. 
(b) TRAVEL EXPENSES.—^The members of the Commission shall 
be allowed travel expenses, including per diem in lieu of subsistence, 
at rates authorized for employees of agencies under subchapter 
I of chapter 57 of title 5, United States Code, while away from 
their homes or regular places of business in the performance of 
services for the Commission. 
(c) STAFF.—(1) The chairman of the Commission may, without 
regard to the provisions of title 5, United States Code, governing 
appointments in the competitive service, appoint a staff director 
and such additional personnel as may be necessary to enable the 
Commission to perform its duties. The appointment of a staff direc-
tor shall be subject to the approval of the Commission. 
(2) The chairman of the Commission may fix the pay of the 
staff director and other personnel without regard to the provisions 
of chapter 51 and subchapter III of chapter 53 of title 5, United 
States Code, relating to classification of positions and General 
Schedule pay rates, except that the rate of pay fixed under this 
paragraph for the staff director may not exceed the rate payable 
for level V of the Executive Schedule under section 5316 of such 
title and the rate of pay for other personnel may not exceed the 
maximum rate payable for grade GS-15 of the General Schedule. 
(d) DETAIL OF GOVERNMENT EMPLOYEES.—Upon request of the 
chairman of the Commission, the head of any Federal department 
or agency may detail, on a nonreimbursable basis, any personnel 
of that department or agency to the Commission to assist it in 
carrying out its duties. 
(e) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERV-
ICES.—^The chairman of the Commission may procure temporary 
and intermittent services under section 3109(b) of title 5, United 
States Code, at rates for individuals which do not exceed the daily 
equivalent of the annual rate of basic pay payable for level V 
of the Executive Schedule under section 5316 of such title. 
110 STAT. 2714 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Defense Against 
Weapons of Mass 
Destruction Act 
of 1996. 
SEC. 1327. MISCELLANEOUS ADMINISTRATIVE PROVISIONS. 
(a) POSTAL AND PRINTING SERVICES.—The Commission may 
use the United States mails and obtain printing and binding serv-
ices in the same manner and under the same conditions as other 
departments and agencies of the Federal Government. 
(b) MISCELLANEOUS ADMINISTRATIVE AND SUPPORT SERVICES.— 
The Director of Central Intelligence shall furnish the Commission, 
on a reimbursable basis, any administrative and support services 
requested by the Commission. 
SEC. 
1328. 
F U N D I N G . 
Funds for activities of the Commission shall be provided from 
amounts appropriated for the Department of Defense for operation 
and maintenance for Defense-wide activities for fiscal year 1997. 
Upon receipt of a written certification from the Chairman of the 
Commission specifying the funds required for the activities of the 
Commission, the Secretary of Defense shall promptly disburse to 
the Commission, from such amounts, the funds required by the 
Commission as stated in such certification. 
SEC. 1329. TERMINATION OF THE COMMISSION. 
The Commission shall terminate 60 days after the date of 
the submission of its report under section 1323. 
TITLE XIV—DEFENSE AGAINST 
WEAPONS OF MASS DESTRUCTION 
Sec. 140 L Short title. 
Sec. 1402. Findings. 
Sec. 1403. Definitions. 
Subtitle A—Domestic Preparedness 
Sec. 1411. Response to threats of terrorist use of weapons of mass destruction. 
Sec. 1412. Emergency response assistance program. 
Sec. 1413. Nuclear, chemical, and biological emergency response. 
Sec. 1414. Chemical-biological emergency response team. 
Sec. 1415. Testing of preparedness for emergencies involving nuclear, radiological, 
chemical, and biological weapons. 
Sec. 1416. Military assistance to civilian law enforcement officials in emergency 
situations involving biological or chemical weapons. 
Sec. 1417. Rapid response information system. 
Subtitle B—Interdiction of Weapons of Mass Destruction and Related 
Materials 
Sec. 1421. Procurement of detection equipment United States border security. 
Sec. 1422. Extension of coverage of International Emergency Economic Powers Act. 
Sec. 1423. Sense of Congress concerning criminal penalties. 
Sec. 1424. International border security. 
Subtitle C—Control and Disposition of Weapons of Mass Destruction and 
Related Materials Threatening the United States 
Sec. 1431. Coverage of weapons-usable fissile materials in Cooperative Threat 
Reduction programs on elimination or transportation of nuclear 
weapons. 
Sec. 1432. Elimination of plutonium production. 
Subtitle D—Coordination of Policy and Countermeasures Against 
Proliferation of Weapons of Mass Destruction 
Sec. 1441. National Coordinator on Nonproliferation. 
Sec. 1442. National Security Council Committee on Nonproliferation. 
Sec. 1443. Comprehensive preparedness program. 
Sec. 1444. Termination. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2715 
Subtitle E—^Miscellaneous 
Sec. 1451. Sense of Congress concerning contracting policy. 
Sec. 1452. Transfers of allocations among Cooperative Threat Reduction programs. 
Sec. 1453. Sense of Congress concerning assistance to states of former Soviet 
Union. 
Sec. 1454. Purchase of low-enriched viranium derived from Russian highly enriched 
uranium. 
Sec. 1455. Sense of Congress concerning purchase, packaging, and transportation of 
fissile materials at risk of theft. 
SEC. 1401. SHORT TITLE. 
50 USC 2301 
This title may be cited as the "Defense Against Weapons of 
Mass Destruction Act of 1996". 
SEC. 1402. FINDmCS. 
50 USC 2301 
Congress makes the following findings: 
(1) Weapons of mass destruction and related materials 
and technologies are increasingly available from worldwide 
sources. Technical information relating to such weapons is read-
ily available on the Internet, and raw materials for chemical, 
biological, and radiological weapons are widely available for 
legitimate commercial purposes. 
(2) The former Soviet Union produced and maintained a 
vast array of nuclear, biological, and chemical weapons of mass 
destruction. 
(3) Many of the states of the former Soviet Union retain 
the facilities, materials, and technologies capable of producing 
additional quantities of weapons of mass destruction. 
(4) The disintegration of the former Soviet Union was 
accompanied by disruptions of command and control systems, 
deficiencies in accountability for weapons, weapons-related 
materials and technologies, economic hardships, and significant 
gaps in border control among the states of the former Soviet 
Union. The problems of organized crime and corruption in 
the states of the former Soviet Union increase the potential 
for proliferation of nuclear, radiological, biological, and chemical 
weapons and related materials. 
(5) The conditions described in paragraph (4) have 
substantially increased the ability of potentially hostile nations, 
terrorist groups, and individuals to acquire weapons of mass 
destruction and related materials and technologies from within 
the states of the former Soviet Union and from unemployed 
scientists who worked on those programs. 
(6) As a result of such conditions, the capability of poten-
tially hostile nations and terrorist groups to acquire nuclear, 
radiological, biological, and chemical weapons is greater than 
at any time in history. 
(7) The President has identified North Korea, Iraq, Iran, 
and Libya as hostile states which already possess some weapons 
of mass destruction and are developing others. 
(8) The acquisition or the development and use of weapons 
of mass destruction is well within the capability of many 
extremist and terrorist movements, acting independently or 
as proxies for foreign states. 
(9) Foreign states can transfer weapons to or otherwise 
aid extremist and terrorist movements indirectly and with plau-
sible deniability. 
110 STAT. 2716 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(10) Terrorist groups have already conducted chemical 
attacks against civilian targets in the United States and Japan, 
and a radiological attack in Russia. 
(11) The potential for the national security of the United 
States to be threatened by nuclear, radiological, chemical, or 
biological terrorism must be taken seriously. 
(12) There is a significant and growing threat of attack 
by weapons of mass destruction on targets that are not military 
targets in the usual sense of the term. 
(13) Concomitantly, the threat posed to the citizens of 
the United States by nuclear, radiological, biological, and chemi-
cal weapons delivered by unconventional means is significant 
and growing. 
(14) Mass terror may result from terrorist incidents involv-
ing nuclear, radiological, biological, or chemical materials. 
(15) Facilities required for production of radiological, 
biological, and chemical weapons are much smaller and harder 
to detect than nuclear weapons facilities, and biological and 
chemical weapons can be deployed by alternative delivery 
means other than long-range ballistic missiles. 
(16) Covert or unconventional means of delivery of nuclear, 
radiological, biological, and chemical weapons include cargo 
ships, passenger aircraft, commercial and private vehicles and 
vessels, and commercial cargo shipments routed through 
multiple destinations. 
(17) Traditional arms control efforts assume large state 
efforts with detectable manufacturing programs and weapons 
production programs, but are ineffective in monitoring and 
controlling 
smaller, 
though 
potentially 
more 
dangerous, 
unconventional proliferation efforts. 
(18) Conventional counterproliferation efforts would do 
little to detect or prevent the rapid development of a capability 
to suddenly manufacture several hundred chemical or biological 
weapons with nothing but commercial supplies and equipment. 
(19) The United States lacks adequate planning and 
countermeasures to address the threat of nuclear, radiological, 
biological, and chemical terrorism. 
(20) The Department of Energy has established a Nuclear 
Emergency Response Team which is available in case of nuclear 
or radiological emergencies, but no comparable units exist to 
deal with emergencies involving biological or chemical weapons 
or related materials. 
(21) State and local emergency response personnel are not 
adequately prepared or trained for incidents involving nuclear, 
radiological, biological, or chemical materials. 
(22) Exercises of the Federal, State, and local response 
to nuclear, radiological, biological, or chemical terrorism have 
revealed serious deficiencies in preparedness and severe prob-
lems of coordination. 
(23) The development of, and allocation of responsibilities 
for, 
effective 
countermeasures 
to 
nuclear, 
radiological, 
biological, or chemical terrorism in the United States requires 
well-coordinated participation of many Federal agencies, and 
careful planning by the Federal Government and State and 
local governments. 
(24) Training and exercises can significantly improve the 
preparedness of State and local emergency response personnel 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2717 
for emergencies involving nuclear, radiological, biological, or 
chemical weapons or related materials. 
(25) Sharing of the expertise and capabilities of the Depart-
ment of Defense, which traditionally has provided assistance 
to Federal, State, and local officials in neutralizing, dis-
mantling, and disposing of explosive ordnance, as well as radio-
logical, biological, and chemical materials, can be a vital 
contribution to the development and deployment of counter-
measures against nuclear, biological, and chemical weapons 
of mass destruction. 
(26) The United States lacks effective policy coordination 
regarding the threat posed by the proliferation of weapons 
of mass destruction. 
SEC. 1403. DEFINITIONS. 
50 USC 2302. 
In this title: 
(1) The term "weapon of mass destruction" means any 
weapon or device that is intended, or has the capability, to 
cause death or serious bodily injury to a significant number 
of people through the release, dissemination, or impact of— 
(A) toxic or poisonous chemicals or their precursors; 
(B) a disease organism; or 
(C) radiation or radioactivity. 
(2) The term "independent states of the former Soviet 
Union" has the meaning given that term in section 3 of the 
FREEDOM Support Act (22 U.S.C. 5801). 
(3) The term "highly enriched uranium" means uranium 
enriched to 20 percent or more in the isotope U-235. 
Subtitle A—^Domestic Preparedness 
SEC. 1411. RESPONSE TO THREATS OF TERRORIST USE OF WEAPONS 
President. 
OF MASS DESTRUCTION. 
50 USC 2311. 
(a) ENHANCED RESPONSE CAPABILITY.—In light of the potential 
for terrorist use of weapons of mass destruction against the United 
States, the President shall take immediate action— 
(1) to enhance the capability of the Federal Government 
to prevent and respond to terrorist incidents involving weapons 
of mass destruction; and 
(2) to provide enhanced support to improve the capabilities 
of State and local emergency response agencies to prevent 
and respond to such incidents at both the national and the 
local level. 
(b) REPORT REQUIRED.—Not later than January 31, 1997, the 
President shall transmit to Congress a report containing— 
(1) an assessment of the capabilities of the Federal (Govern-
ment to prevent and respond to terrorist incidents involving 
weapons of mass destruction and to support State and local 
prevention and response efforts; 
(2) 
requirements 
for 
improvements 
in 
those 
cap-
abilities; and 
(3) the measures that should be taken to achieve such 
improvements, including additional resources and legislative 
authorities that would be required. 
110 STAT. 2718 
PUBLIC LAW 104-201—SEPT. 23, 1996 
50 use 2312. 
SEC. 1412. EMERGENCY RESPONSE ASSISTANCE PROGRAM, 
(a) PROGRAM REQUIRED.—(1) The Secretary of Defense shall 
carry out a program to provide civilian personnel of Federal, State, 
and local agencies with training and expert advice regarding emer-
gency responses to a use or threatened use of a weapon of mass 
destruction or related materials. 
(2) The President may designate the head of an agency other 
than the Department of Defense to assume the responsibility for 
carrying out the program on or after October 1, 1999, and relieve 
the Secretary of Defense of that responsibility upon the assumption 
of the responsibility by the designated official. 
(3) In this section, the official responsible for carrying out 
the program is referred to as the "lead official". 
(b) COORDINATION.—In carrying out the program, the lead offi-
cial shall coordinate with each of the following officials who is 
not serving as the lead official: 
(1) The Director of the Federal Emergency Management 
Agency. 
(2) The Secretary of Energy. 
(3) The Secretary of Defense. 
(4) The heads of any other Federal, State, and local govern-
ment agencies that have an expertise or responsibilities 
relevant to emergency responses described in subsection (a)(1). 
(c) ELIGIBLE PARTICIPANTS.—The civilian personnel eligible to 
receive assistance under the program are civilian personnel of Fed-
eral, State, and local agencies who have emergency preparedness 
responsibilities. 
(d) INVOLVEMENT OF OTHER FEDERAL AGENCIES.—(1) The lead 
official may use personnel and capabilities of Federal agencies 
outside the agency of the lead official to provide training and 
expert advice under the program. 
(2)(A) Personnel used under paragraph (1) shall be personnel 
who have special skills relevant to the particular assistance that 
the personnel are to provide. 
(B) Capabilities used under paragraph (1) shall be capabilities 
that are especially relevant to the particular assistance for which 
the capabilities are used. 
(3) If the lead official is not the Secretary of Defense, and 
requests assistance from the Department of Defense that, in the 
judgment of the Secretary of Defense would affect military readiness 
or adversely affect national security, the Secretary of Defense may 
appeal the request for Department of Defense assistance by the 
lead official to the President. 
(e) AVAILABLE ASSISTANCE.—^Assistance available under this 
program shall include the following: 
(1) Training in the use, operation, and maintenance of 
equipment for— 
(A) detecting a chemical or biological agent or nuclear 
radiation; 
(B) monitoring the presence of such an agent or 
radiation; 
(C) 
protecting 
emergency 
personnel 
and the 
public; and 
(D) decontamination. 
(2) Establishment of a designated telephonic link (com-
monly referred to as a "hot line") to a designated source of 
relevant data and expert advice for the use of State or local 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2719 
officials responding to emergencies involving a weapon of mass 
destruction or related materials. 
(3) Use of the National Guard and other reserve compo-
nents for purposes authorized under this section that are speci-
fied by the lead official (with the concurrence of the Secretary 
of Defense if the Secretary is not the lead official). 
(4) Loan of appropriate equipment. 
(f) LIMITATIONS ON DEPARTMENT OF DEFENSE ASSISTANCE TO 
LAW ENFORCEMENT AGENCIES.—^Assistance provided by the Depart-
ment of Defense to law enforcement agencies under this section 
shall be provided under the authority of, and subject to the restric-
tions provided in, chapter 18 of title 10, United States Code. 
(g) ADMINISTRATION OF DEPARTMENT OF DEFENSE 
ASSIST-
ANCE.—The Secretary of Defense shall designate an official within 
the Department of Defense to serve as the executive agent of 
the Secretary for the coordination of the provision of Department 
of Defense assistance under this section. 
(h) FUNDING.—(1) Of the total amount authorized to be appro-
priated under section 301, $35,000,000 is available for the program 
required under this section. 
(2) Of the amount available for the program pursuant to para-
graph (1), $10,500,000 is available for use by the Secretary of 
Defense to assist the Secretary of Health and Human Services 
in the establishment of metropolitan emergency medical response 
teams (commonly referred to as "Metropolitan Medical Strike Force 
Teams") to provide medical services that are necessary or potentially 
necessary by reason of a use or threatened use of a weapon of 
mass destruction. 
(3) The amount available for the program under paragraph 
(1) is in addition to any other amounts authorized to be appropriated 
for the program under section 301. 
SEC. 1413. NUCLEAR, CHEMICAL, AND BIOLOGICAL EMERGENCY 
50 USC 2313. 
RESPONSE. 
(a) DEPARTMENT OF DEFENSE.—^The Secretary of Defense shall 
designate an official within the Department of Defense as the 
executive agent for— 
(1) the coordination of Department of Defense assistance 
to Federal, State, and local officials in responding to threats 
involving biological or chemical weapons or related materials 
or technologies, including assistance in identifying, neutraliz-
ing, dismantling, and disposing of biological and chemical 
weapons and related materials and technologies; and 
(2) the coordination of Department of Defense assistance 
to the Department of Energy in carrying out that department's 
responsibilities under subsection (b). 
(b) DEPARTMENT OF ENERGY.—^The Secretary of Energy shall 
designate an official within the Department of Energy as the execu-
tive agent for— 
(1) the coordination of Department of Energy assistance 
to Federal, State, and local officials in responding to threats 
involving nuclear, chemical, and biological weapons or related 
materials or technologies, including assistance in identifying, 
neutralizing, dismantling, and disposing of nuclear weapons 
and related materials and technologies; and 
110 STAT. 2720 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(2) the coordination of Department of Energy assistance 
to the Department of Defense in carrying out that department's 
responsibilities under subsection (a). 
(c) FUNDING.—Of the total amount authorized to be appro-
priated under section 301, $15,000,000 is available for providing 
assistance described in subsection (a). 
50 use 2314. 
SEC. 1414. CHEMICAL-BIOLOGICAL EMERGENCY RESPONSE TEAM. 
(a) DEPARTMENT OF DEFENSE RAPID RESPONSE TEAM.—The Sec-
retary of Defense shall develop and maintain at least one domestic 
terrorism rapid response team composed of members of the Armed 
Forces and employees of the Department of Defense who are capable 
of aiding Federal, State, and local officials in the detection, neutral-
ization, containment, dismantlement, and disposal of weapons of 
mass destruction containing chemical, biological, or related mate-
rials. 
(b) ADDITION TO FEDERAL RESPONSE PLAN.—Not later than 
December 31, 1997, the Director of the Federal Emergency Manage-
ment Agency shall develop and incorporate into existing Federal 
emergency response plans and programs prepared under section 
611(b) of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5196(b)) guidance on the use and deploy-
ment of the rapid response teams established under this section 
to respond to emergencies involving weapons of mass destruction. 
The Director shall carry out this subsection in consultation with 
the Secretary of Defense and the heads of other Federal agencies 
involved with the emergency response plans. 
50 use 2315. 
SEC. 1415. TESTING 
OF 
PREPAREDNESS 
FOR 
EMERGENCIES 
INVOLVING NUCLEAR, RADIOLOGICAL, CHEMICAL, AND 
BIOLOGICAL WEAPONS. 
(a) 
EMERGENCIES 
INVOLVING 
CHEMICAL 
OR 
BIOLOGICAL 
WEAPONS.—(1) The Secretary of Defense shall develop and carry 
out a program for testing and improving the responses of Federal, 
State, and local agencies to emergencies involving biological weap-
ons and related materials and emergencies involving chemical 
weapons and related materials. 
(2) The program shall include exercises to be carried out during 
each of five successive fiscal years beginning with fiscal year 1997. 
(3) In developing and carrying out the program, the Secretary 
shall coordinate with the Director of the Federal Bureau of Inves-
tigation, the Director of the Federal Emergency Management 
Agency, the Secretary of Energy, and the heads of any other Fed-
eral, State, and local government agencies that have an expertise 
or responsibilities relevant to emergencies described in paragraph 
(1). 
(b) 
EMERGENCIES INVOLVING NUCLEAR AND RADIOLOGICAL 
WEAPONS.—(1) The Secretary of Energy shall develop and carry 
out a program for testing and improving the responses of Federal, 
State, and local agencies to emergencies involving nuclear and 
radiological weapons and related materials. 
(2) The program shall include exercises to be carried out during 
each of five successive fiscal years beginning with fiscal year 1997. 
(3) In developing and carrying out the program, the Secretary 
shall coordinate with the Director of the Federal Bureau of Inves-
tigation, the Director of the Federal Emergency Management 
Agency, the Secretary of Defense, and the heads of any other 
Federal, State, and local government agencies that have an exper-
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2721 
tise or responsibilities relevant to emergencies described in para-
graph (1). 
(c) ANNUAL REVISIONS OF PROGRAMS.—^The olTicial responsible 
for carrying out a program developed under subsection (a) or (b) 
shall revise the program not later than June 1 in each fiscal 
year covered by the program. The revisions shall include adjust-
ments that the official determines necessary or appropriate on 
the basis of the lessons learned from the exercise or exercises 
carried out under the program in the fiscal year, including lessons 
learned regarding coordination problems and equipment defi-
ciencies. 
(d) OPTION TO TRANSFER RESPONSIBILITY.—(1) The President 
may designate the head of an agency outside the Department of 
Defense to assume the responsibility for carrying out the program 
developed under subsection (a) beginning on or after October 1, 
1999, and relieve the Secretary of Defense of that responsibility 
upon the assumption of the responsibility by the designated official. 
(2) The President may designate the head of an agency outside 
the Department of Energy to assume the responsibility for carrying 
out the program developed under subsection (b) beginning on or 
after October 1, 1999, and relieve the Secretary of Energy of that 
responsibility upon the assumption of the responsibility by the 
designated official. 
(e) 
FUNDING.—Of 
the 
total 
amount 
authorized 
to 
be 
appropriated under section 301, $15,000,000 is available for the 
development and execution of the programs required by this section, 
including the participation of State and local agencies in exercises 
carried out under the programs. 
SEC. 1416. MIUTARY ASSISTANCE TO CIVILIAN LAW ENFORCEMENT 
OFFICIALS 
IN EMERGENCY 
SITUATIONS 
INVOLVING 
BIOLOGICAL OR CHEMICAL WEAPONS. 
(a) ASSISTANCE AUTHORIZED.—(1) Chapter 18 of title 10, United 
States Code, is amended by adding at the end the following new 
section: 
**§382. Emergency 
situations 
involving 
chemical 
or 
biological weapons of mass destruction 
"(a) IN GENERAL.— The Secretary of Defense, upon the request 
of the Attorney General, may provide assistance in support of 
Department of Justice activities relating to the enforcement of 
section 175 or 2332c of title 18 during an emergency situation 
involving a biological or chemical weapon of mass destruction. 
Department of Defense resources, including personnel of the Depart-
ment of Defense, may be used to provide such assistance if— 
"(1) the Secretary of Defense and the Attorney General 
jointly determine that an emergency situation exists; and 
"(2) the Secretary of Defense determines that the provision 
of such assistance will not adversely affect the military 
preparedness of the United States. 
"(b) EMERGENCY SITUATIONS COVERED.—In this section, the 
term 'emergency situation involving a biological or chemical weapon 
of mass destruction* means a circumstance involving a biological 
or chemical weapon of mass destruction— 
"(1) that poses a serious threat to the interests of the 
United States; and 
"(2) in which— 
110 STAT. 2722 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(A) civilian expertise and capabilities are not readily 
available to provide the required assistance to counter the 
threat immediately posed by the weapon involved; 
"(B) special capabilities and expertise of the Depart-
ment of Defense are necessary and critical to counter the 
threat posed by the weapon involved; and 
"(C) enforcement of section 175 or 2332c of title 18 
would be seriously impaired if the Department of Defense 
assistance were not provided. 
"(c) FORMS OF ASSISTANCE.—^The assistance referred to in sub-
section (a) includes the operation of equipment (including equipment 
made available under section 372 of this title) to monitor, contain, 
disable, or dispose of the weapon involved or elements of the 
weapon. 
"(d) REGULATIONS.—<1) The Secretary of Defense and the Attor-
ney General shall jointly prescribe regulations concerning the types 
of assistance that may be provided under this section. Such regula-
tions shall also describe the actions that Department of Defense 
personnel may take in circumstances incident to the provision of 
assistance under this section. 
"(2)(A) Except as provided in subparagraph (B), the regulations 
may not authorize the following actions: 
"(i) Arrest. 
"(ii) Any direct participation in conducting a search for 
or seizure of evidence related to a violation of section 
175 or 2332c of title 18. 
"(iii) Any direct participation in the collection of intelligence 
for law enforcement purposes. 
"(B) The regulations may authorize an action described in 
subparagraph (A) to be taken under the following conditions: 
"(i) The action is considered necessary for the immediate 
protection of human life, and civilian law enforcement officials 
are not capable of taking the action. 
"(ii) The action is otherwise authorized under subsection 
(c) or under otherwise applicable law. 
"(e) REIMBURSEMENTS.—The Secretary of Defense shall require 
reimbursement as a condition for providing assistance under this 
section to the extent required under section 377 of this title. 
"(f) DELEGATIONS OF AUTHORITY.—(1) Except to the extent 
otherwise provided by the Secretary of Defense, the Deputy Sec-
retary of Defense may exercise the authority of the Secretary of 
Defense under this section. The Secretary of Defense may delegate 
the Secretary's authority under this section only to an Under Sec-
retary of Defense or an Assistant Secretary of Defense and only 
if the Under Secretary or Assistant Secretary to whom delegated 
has been designated by the Secretary to act for, and to exercise 
the general powers of, the Secretary. 
"(2) Except to the extent otherwise provided by the Attorney 
General, the Deputy Attorney General may exercise the authority 
of the Attorney General under this section. The Attorney General 
may delegate that authority only to the Associate Attorney General 
or an Assistant Attorney General and only if the Associate Attorney 
General or Assistant Attorney General to whom delegated has 
been designated by the Attorney General to act for, and to exercise 
the general powers of, the Attorney General. 
"(g) RELATIONSHIP TO OTHER AUTHORITY.—Nothing in this sec-
tion shall be construed to restrict any executive branch authority 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2723 
regarding use of members of the armed forces or equipment of 
the Department of Defense that was in effect before the date of 
the enactment of the National Defense Authorization Act for Fiscal 
Year 1997.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"382. Emergency situations involving chemical or biological weapons of mass 
destruction.". 
(b) CONFORMING AMENDMENT TO CONDITION FOR PROVIDING 
EQUIPMENT AND FACILITIES.—Section 372(b)(1) of title 10, United 
States Code, is amended by adding at the end the following new 
sentence: 'The requirement for a determination that an item is 
not reasonably available from another source does not apply to 
assistance provided under section 382 of this title pursuant to 
a request of the Attorney General for the assistance.". 
(c) CONFORMING AMENDMENTS RELATING TO AUTHORITY TO 
REQUEST ASSISTANCE.—(1)(A) Chapter 10 of title 18, United States 
Code, is amended by inserting after section 175 the following new 
section: 
*
*
§ 175a. Req^uests for military assistance to enforce prohibi-
tion in certain emergencies 
"The Attorney General may request the Secretary of Defense 
to provide assistance under section 382 of title 10 in support of 
Department of Justice activities relating to the enforcement of 
section 175 of this title in an emergency situation involving a 
biological weapon of mass destruction. The authority to make such 
a request may be exercised by another official of the Department 
of Justice in accordance with section 382(f)(2) of title 10.". 
(B) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 175 
the following new item: 
"175a. Requests for military assistance to enforce prohibition in certain emer-
gencies.". 
(2)(A) The chapter 133B of title 18, United States Code, that 
relates to terrorism is amended by inserting after section 2332c 
the following new section: 
*
*
§ 2332d. Requests for military assistance to enforce prohibi-
tion in certain emergencies 
"The Attorney General may request the Secretary of Defense 
to provide assistance under section 382 of title 10 in support of 
Department of Justice activities relating to the enforcement of 
section 2332c of this title during an emergency situation involving 
a chemical weapon of mass destruction. The authority to make 
such a request may be exercised by another official of the Depart-
ment of Justice in accordance with section 382(f)(2) of title 10.". 
(B) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2332c 
the following new item: 
"2332d. Requests for military assistance to enforce prohibition in certain emer-
gencies.". 
(d) CIVILIAN EXPERTISE.—The President shall take reasonable President. 
measures to reduce the reliance of civilian law enforcement officials 
50 USC 2316. 
on Department of Defense resources to counter the threat posed 
by the use or potential use of biological and chemical weapons 
29-194 O - 96 - 32 : QL 3 Part 3 
110 STAT. 2724 
PUBLIC LAW 104-201—SEPT. 23, 1996 
of mass destruction within the United States. The measures shall 
include— 
(1) actions to increase civilian law enforcement expertise 
to counter such a threat; and 
(2) actions to improve coordination between civilian law 
enforcement officials and other civilian sources of expertise, 
within and outside the Federal Government, to counter such 
a threat. 
50 use 2316. 
(e) REPORTS.—The President shall submit to Cpngress the fol-
lowing reports: 
(1) Not later than 90 days after the date of the enactment 
of this Act, a report describing the respective policy functions 
and operational roles of Federal agencies in countering the 
threat posed by the use or potential use of biological and 
chemical weapons of mass destruction within the United States. 
(2) Not later than one year after such date, a report 
describing— 
(A) the actions planned to be taken to carry out sub-
section (d); and 
(B) the costs of such actions. 
(3) Not later than three years after such date, a report 
updating the information provided in the reports submitted 
pursuant to paragraphs (1) and (2), including the measures 
taken pursuant to subsection (d). 
50 use 2317. 
SEC. 1417. RAPID RESPONSE INFORMATION SYSTEM. 
(a) INVENTORY OF RAPID RESPONSE ASSETS.—(1) The head of 
each Federal Response Plan agency shall develop and maintain 
an inventory of physical equipment and assets under the jurisdiction 
of that agency that could be made available to aid State and 
local officials in search and rescue and other disaster management 
and mitigation efforts associated with an emergency involving weap-
ons of mass destruction. The agency head shall submit a copy 
of the inventory, and any updates of the inventory, to the Director 
of the Federal Emergency Management Agency for inclusion in 
the master inventory required under subsection (b). 
(2) Each inventory shall include a separate listing of any equip-
ment that is excess to the needs of that agency and could be 
considered for disposal as excess or surplus property for use for 
response and training with regard to emergencies involving weapons 
of mass destruction. 
(b) MASTER INVENTORY.—The Director of the Federal Emer-
gency 
Management 
Agency 
shall 
compile 
and 
maintain 
a 
comprehensive listing of all inventories prepared under subsection 
(a). The first such master list shall be completed not later than 
December 31, 1997, and shall be updated annually thereafter. 
(c) ADDITION TO FEDERAL RESPONSE PLAN.—Not later than 
December 31, 1997, the Director of the Federal Emergency Manage-
ment Agency shall develop and incorporate into existing Federal 
emergency response plans and programs prepared under section 
611(b) of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5196(b)) guidance on accessing and using 
the physical equipment and assets included in the master list 
developed under subsection to respond to emergencies involving 
weapons of mass destruction. 
(d) DATABASE ON CHEMICAL AND BIOLOGICAL MATERIALS.—The 
Director of the Federal Emergency Management Agency, in con-
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2725 
sultation with the Secretary of Defense, shall prepare a database 
on chemical and biological agents and munitions characteristics 
and safety precautions for civilian use. The initial design and com-
pilation of the database shall be completed not later than December 
31, 1997. 
(e) ACCESS TO INVENTORY AND DATABASE.—^The Director of 
the Federal Emergency Management Agency shall design and main-
tain a system to give Federal, State, and local officials access 
to the inventory listing and database maintained under this section 
in the event of an emergency involving weapons of mass destruction 
or to prepare and train to respond to such an emergency. The 
system shall include a secure but accessible emergency response 
hotline to access information and request assistance. 
Subtitle B—Interdiction of Weapons of 
Mass Destruction and Related Materials 
SEC. 1421. PROCUREMENT 
OF 
DETECTION 
EQXJIPMENT UNITED 
50 USC 2331. 
STATES BORDER SECURITY. 
Of the amount authorized to be appropriated by section 301, 
$15,000,000 is available for the procurement of— 
(1) equipment capable of detecting the movement of weap-
ons of mass destruction and related materials into the United 
States; 
(2) equipment capable of interdicting the movement - of 
weapons of mass destruction and related materials into the 
United States; and 
(3) materials and technologies related to use of equipment 
described in paragraph (1) or (2). 
SEC. 1422. EXTENSION OF COVERAGE OF INTERNATIONAL EMER-
GENCY ECONOMIC POWERS ACT. 
Section 206 of the International Emergency Economic Powers 
Act (50 U.S.C. 1705) is amended— 
(1) in subsection (a), by inserting ", or attempts to violate," 
after "violates"; and 
(2) in subsection (b), by inserting ", or willfully attempts 
to violate," after "violates". 
SEC. 1423. SENSE OF CONGRESS CONCERNING CRIMINAL PENALTIES. 
50 USC 2332. 
(a) SENSE OF CONGRESS CONCERNING INADEQUACY OF SENTENC-
ING GUIDELINES.—It is the sense of Congress that the sentencing 
guidelines prescribed by the United States Sentencing Commission 
for the offenses of importation, attempted importation, exportation, 
and attempted exportation of nuclear, biological, and chemical weap-
ons materials constitute inadequate punishment for such offenses. 
(b) URGING OF REVISON TO GUIDELINES.—Congress urges the 
United States Sentencing Commission to revise the relevant 
sentencing guidelines to provide for increased penalties for offenses 
relating to importation, attempted importation, exportation, and 
attempted exportation of nuclear, biological, or chemical weapons 
or related materials or technologies under the following provisions 
of law: 
(1) Section 11 of the Export Administration Act of 1979 
(50 U.S.C. App. 2410). 
110 STAT. 2726 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(2) Sections 38 and 40 of the Arms Export Control Act 
(22 U.S.C. 2778 and 2780). 
(3) The International Emergency Economic Powers Act 
(50 U.S.C. 1701 et seq.). 
(4) Section 309(c) of the Nuclear Non-Proliferation Act of 
1978 (22 U.S.C. 2156a(c)). 
50 use 2333. 
SEC. 1424. INTERNATIONAL BORDER SECURITY. 
(a) SECRETARY OF DEFENSE RESPONSIBILITY.—The Secretary 
of Defense, in consultation and cooperation with the Commissioner 
of Customs, shall carry out programs for assisting customs officials 
and border guard officials in the independent states of the former 
Soviet Union, the Baltic states, and other countries of Eastern 
Europe in preventing unauthorized transfer and transportation of 
nuclear, biological, and chemical weapons and related materials. 
Training, expert advice, maintenance of equipment, loan of equip-
ment, and audits may be provided under or in connection with 
the programs. 
(b) FUNDING.—Of the total amount authorized to be appro-
priated by section 301, $15,000,000 is available for carrying out 
the programs referred to in subsection (a). 
(c) ASSISTANCE TO STATES OF THE FORMER SOVIET UNION.— 
Assistance under programs referred to in subsection (a) may 
(notwithstanding any provision of law prohibiting the extension 
of foreign assistance to any of the newly independent states of 
the former Soviet Union) be extended to include an independent 
state of the former Soviet Union if the President certifies to Con-
gress that it is in the national interest of the United States to 
extend assistance under this section to that state. 
Subtitle C—Control and Disposition of 
Weapons 
of 
Mass 
Destruction 
and 
Related 
Materials 
Threatening 
the 
United States 
SEC. 1431. COVERAGE OF WEAPONS-USABLE FISSILE MATERIALS IN 
COOPERATIVE 
THREAT 
REDUCTION 
PROGRAMS 
ON 
EUMINATION 
OR 
TRANSPORTATION 
OF 
NUCLEAR 
WEAPONS. 
Section 1201(b)(1) of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 469; 22 U.S.C. 
5955 note) is amended by inserting ", fissile material suitable 
for use in nuclear weapons," after "other weapons". 
50 use 2341. 
SEC. 1432. ELIMINATION OF PLUTONIUM PRODUCTION. 
(a) REPLACEMENT PROGRAM.—^The Secretary of Energy, in con-
sultation with the Secretary of Defense, shall develop a cooperative 
program with the Government of Russia to eliminate the production 
of weapons grade plutonium by modifying or replacing the reactor 
cores at Tomsk-7 and Krasnoyarsk-26 with reactor cores that 
are less suitable for the production of weapons-grade plutonium. 
(b) 
PROGRAM 
REQUIREMENTS.—(1) The program shall be 
designed to achieve completion of the modifications or replacements 
of the reactor cores within three years after the modification or 
replacement activities under the program are begun. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2727 
(2) The plan for the program shall— 
(A) specify— 
(i) successive steps for the modification or replacement 
of the reactor cores; and 
(ii) clearly defined milestones to be achieved; and 
(B) include estimates of the costs of the program. 
(c) SUBMISSION OF PROGRAM PLAN TO CONGRESS.—Not later 
than 180 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to Congress— 
(1) a plan for the program under subsection (a); 
(2) an estimate of the United States funding that is nec-
essary for carrying out the activities under the program for 
each fiscal year covered by the program; and 
(3) a comparison of the benefits of the program with the 
benefits of other nonproliferation programs. 
Subtitle D—Coordination of Policy and 
Countermeasures Against Proliferation 
of Weapons of Mass Destruction 
SEC. 1441. NATIONAL COORDINATOR ON NONPROLIFERATION. 
50 USC 2351. 
(a) DESIGNATION OF POSITION.—The President shall designate President, 
an individual to serve in the Executive Office of the President 
as the National Coordinator for Nonproliferation Matters. 
(b) DUTIES.—^The Coordinator, under the direction of the 
National 
Security 
Council, 
shall 
advise 
and 
assist 
the 
President by— 
(1) advising the President on nonproliferation of weapons 
of mass destruction, including issues related to terrorism, arms 
control, and international organized crime; 
(2) chairing the Committee on Nonproliferation established 
under section 1342; and 
(3) taking such actions as are necessary to ensure that 
there is appropriate emphasis in, cooperation on, and coordina-
tion of, nonproliferation research efforts of the United States, 
including activities of Federal agencies as well as activities 
of contractors funded by the Federal Government. 
(c) ALLOCATION OF FUNDS.—Of the total amount authorized 
to be afJpropriated under section 301, $2,000,000 is available to 
the Department of Defense for carrying out research referred to 
in subsection (b)(3). 
SEC. 1442. NATIONAL SECURITY COUNCIL COMMITTEE ON NON- 50 USC 2352. 
PROLIFERATION. 
(a) ESTABLISHMENT.—^The Committee on Nonproliferation (in 
this section referred to as the "Committee") is established as a 
committee of the National Security Council. 
(b) MEMBERSHIP.—(1) The Committee shall be composed of 
representatives of the following: 
(A) The Secretary of State. 
(B) The Secretary of Defense. 
(C) The Director of Central Intelligence. 
(D) The Attorney General. 
(E) The Secretary of Energy. 
110 STAT. 2728 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(F) The Administrator of the Federal Emergency Manage-
ment Agency. 
(G) The Secretary of the Treasury. 
(H) The Secretary of Commerce. 
(I) Such other members as the President may designate. 
(2) The National Coordinator for Nonproliferation Matters shall 
chair the Committee on Nonproliferation. 
(c) 
RESPONSIBILITIES.—^The Committee has 
the 
following 
responsibilities: 
(1) To review and coordinate Federal programs, policies, 
and directives relating to the proliferation of weapons of mass 
destruction and related materials and technologies, including 
matters relating to terrorism and international organized crime. 
(2) To make recommendations through the National Secu-
rity Council to the President regarding the following: 
(A) Integrated national policies for countering the 
threats posed by weapons of mass destruction. 
(B) Options for integrating Federal agency budgets 
for countering such threats. 
(C) Means to ensure that Federal, State, and local 
governments have adequate capabilities to manage crises 
involving nuclear, radiological, biological, or chemical weap-
ons or related materials or technologies, £ind to manage 
the consequences of a use of such weapon or related mate-
rials or technologies, and that use of those capabilities 
is coordinated. 
(D) Means to ensure appropriate cooperation on, and 
coordination of, the following: 
(i) Preventing the smuggling of weapons of mass 
destruction and related materials and technologies. 
(ii) Promoting domestic and international law 
enforcement 
efforts 
against 
proliferation-related 
efforts. 
(iii) Countering the involvement of organized crime 
groups in proliferation-related activities. 
(iv) Safeguarding weapons of mass destruction 
materials and related technologies. 
(v) Improving coordination and cooperation among 
intelligence 
activities, law enforcement, 
and 
the 
Departments of Defense, State, Commerce, and Energy 
in support of nonproliferation and counterproliferation 
efforts. 
(vi) Improving export controls over materials and 
technologies that can contribute to the acquisition of 
weapons of mass destruction. 
(vii) Reducing proliferation of weapons of mass 
destruction and related materials and technologies. 
President. 
SEC. 1443. COMPREHENSIVE PREPAREDNESS PROGRAM. 
(a) PROGRAM REQUIRED.—^The President, acting through the 
Committee on Nonproliferation established under section 1442, 
shall develop a comprehensive program for carrying out this title. 
(b) CONTENT OF PROGRAM.—^The program set forth in the report 
shall include specific plans as follows: 
(1) Plans for countering proliferation of weapons of mass 
destruction and related materials and technologies. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2729 
(2) Plans for training and equipping Federal, State, and 
local officials for managing a crisis involving a use or threatened 
use of a weapon of mass destruction, including the consequences 
of the use of such a weapon. 
(3) Plans for providing for regular sharing of information 
among intelligence, law enforcement, and customs agencies. 
(4) Plans for training and equipping law enforcement units, 
customs services, and border security personnel to counter the 
smuggling of weapons of mass destruction and related materials 
and technologies. 
(5) Plans for establishing appropriate centers for analyzing 
seized nuclear, radiological, biological, and chemical weapons, 
and related materials and technologies. 
(6) Plans for establishing in the United States appropriate 
legal controls and authorities relating to the exporting of 
nuclear, radiological, biologicEil, and chemical weapons, and 
related materials and technologies. 
(7) Plans for encouraging and assisting governments of 
foreign countries to implement and enforce laws that set forth 
appropriate penalties for offenses regarding the smuggling of 
weapons of mass destruction and related materials and tech-
nologies. 
(8) Plans for building the confidence of the United States 
and Russia in each other's controls over United States and 
Russian nuclear weapons and fissile materials, including plans 
for verifying the dismantlement of nuclear weapons. 
(9) Plans for reducing United States and Russian stockpiles 
of excess plutonium, reflecting— 
(A) consideration of the desirability and feasibility of 
a United States-Russian agreement governing fissile mate-
rial 
disposition 
and 
the 
specific 
technologies 
and 
approaches to be used for disposition of excess plutonium; 
and 
(B) an assessment of the options for United States 
cooperation with Russia in the disposition of Russian pluto-
nium. 
(10) Plans for studjring the merits and costs of establishing 
a global network of means for detecting and responding to 
terroristic or other criminal use of biological agents against 
people or other forms of life in the United States or any foreign 
country. 
(c) REPORT.—(1) At the same time that the President submits 
the budget for fiscal year 1998 to Congress pursuant to section 
1105(a) of title 31, United States Code, the President shall submit 
to Congress a report that sets forth the comprehensive program 
developed under subsection (a). 
(2) The report shall include the following: 
(A) The specific plans for the program that are required 
under subsection (b). 
(B) Estimates of the funds necessary, by agency or depart-
ment, for carrying out such plans in fiscal year 1998 and 
the following five fiscal years. 
(3) The report shall be in an unclassified form. If there is 
a classified version of the report, the President shall submit the 
classified version at the same time. 
110 STAT. 2730 
PUBLIC LAW 104-201—SEPT. 23, 1996 
50 use 2354. 
SEC. 1444. TERMINATION. 
After September 30, 1999, the President— 
(1) is not required to maintain a National Coordinator 
for Nonproliferation Matters under section 1341; and 
(2) may terminate the Committee on Nonproliferation 
established under section 1342. 
Subtitle E—^Miscellaneous 
50 use 2361. 
SEC. 1451. SENSE OF CONGRESS CONCERNING CONTRACTING POLICY. 
It is the sense of Congress that the Secretary of Defense, 
the Secretary of Energy, the Secretary of the Treasury, and the 
Secretary of State, to the extent authorized by law, should— 
(1) contract directly with suppliers in independent states 
of the former Soviet Union when such action would— 
(A) result in significant savings of the programs 
referred to in subtitle C; and 
(B) substantially expedite completion of the programs 
referred to in subtitle C; and 
(2) seek means to use innovative contracting approaches 
to avoid delay and increase the effectiveness of such programs 
and of the exercise of such authorities. 
50 use 2362. 
SEC. 1452. TRANSFERS OF ALLOCATIONS AMONG COOPERATIVE 
THREAT REDUCTION PROGRAMS. 
Congress finds that— 
(1) the various Cooperative Threat Reduction programs 
are being carried out at different rates in the various countries 
covered by such programs; and 
(2) it is necessary to authorize transfers of funding alloca-
tions among the various programs in order to maximize the 
effectiveness of United States efforts under such programs. 
50 use 2363. 
SEC. 1453. SENSE OF CONGRESS CONCERNING ASSISTANCE TO 
STATES OF FORMER SOVIET UNION. 
It is the sense of Congress that— 
(1) the Cooperative Threat Reduction programs and other 
United States programs authorized in the National Defense 
Authorization Act for Fiscal Years 1993 and 1994 should be 
expanded by offering assistance under those programs to other 
independent states of the former Soviet Union in addition to 
Russia, Ukraine, Kazakstan, and Belarus; and 
(2) the President should offer assistance to additional 
independent states of the former Soviet Union in each case 
in which the participation of such states would benefit national 
security interests of the United States by improving border 
controls and safeguards over materials and technology associ-
ated with weapons of mass destruction. 
50 use 2364. 
SEC. 1454. PURCHASE OF LOW-ENRICHED URANIUM DERIVED FROM 
RUSSIAN HIGHLY ENRICHED URANIUM. 
(a) SENSE OF CONGRESS.—It is the sense of Congress that 
the allies of the United States and other nations should participate 
in efforts to ensure that stockpiles of weapons-grade nuclear mate-
rial are reduced. 
(b) ACTIONS BY THE SECRETARY OF STATE.—Congress urges 
the Secretary of State to encourage, in consultation with the Sec-
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2731 
retary of Energy, other countries to purchase low-enriched uranium 
that is derived from highly enriched uranium extracted from Rus-
sian nuclear weapons. 
SEC. 1455. SENSE OF CONGRESS CONCERNING PURCHASE, PACKAG- 
50 USC 2365. 
ING, AND TRANSPORTATION OF FISSILE MATERIALS AT 
RISK OF THEFT. 
It is the sense of Congress that— 
(1) the Secretary of Defense, the Secretary of Energy, the 
Secretary of the Treasury, and the Secretary of State should 
purchase, package, and transport to secure locations weapons-
grade nuclear materials from a stockpile of such materials 
if such officials determine that— 
(A) there is a significant risk of theft of such 
materials; and 
(B) there is no reasonable and economically feasible 
alternative for securing such materials; and 
(2) if it is necessary to do so in order to secure the materials, 
the materials should be imported into the United States, subject 
to the laws and regulations that are applicable to the importa-
tion of such materials into the United States. 
TITLE XV—COOPERATIVE THREAT RE-
DUCTION WITH STATES OF FORMER 
SOVIET UNION 
Sec. 1501. Specification of Cooperative Threat Reduction programs. 
Sec. 1502. Fiscal year 1997 funding allocations. 
Sec. 1503. Prohibition on use of funds for specified purposes. 
Sec. 1504. Limitation on use of fiinds until specified reports are submitted. 
Sec. 1505. Availability of funds. 
SEC. 
1501. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
50 USC 2362 
PROGRAMS. 
note. 
(a) IN GENERAL.—For purposes of section 301 and other provi-
sions of this Act, Cooperative Threat Reduction programs are the 
programs specified in subsection (b). 
(b) SPECIFIED PROGRAMS.—^The programs referred to in sub-
section (a) are the following programs with respect to states of 
the former Soviet Union: 
(1) Programs to facilitate the elimination, and the safe 
and secure transportation and storage, of nuclear, chemical, 
and other weapons and their delivery vehicles. 
(2) Programs to facilitate the safe and secure storage of 
fissile materials derived from the elimination of nuclear 
weapons. 
(3) Programs to prevent the proliferation of weapons, weap-
ons components, and weapons-related technology and expertise. 
(4) Programs to expand military-to-military and defense 
contacts. 
SEC. 1502. FISCAL YEAR 1997 FUNDING ALLOCATIONS. 
(a) IN GENERAL.—Of the amount appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative 
Threat Reduction programs, not more than the following amounts 
may be obligated for the purposes specified: 
110 STAT. 2732 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(1) For planning and design of a chemical weapons destruc-
tion facility in Russia, $78,500,000. 
(2) For elimination of strategic offensive arms in Russia, 
$52,000,000. 
(3) For strategic nuclear arms elimination in Ukraine, 
$47,000,000. 
(4) For planning and design of a storage facility for Russian 
fissile material, $66,000,000. 
(5) For fissile material containers in Russia, $38,500,000. 
(6) For weapons storage security in Russia, $15,000,000. 
(7) For activities designated as Defense and Military-to-
Military Contacts in Russia, Ukraine, Belarus, and Kazakhstan, 
$10,000,000. 
(8) For activities designated 
as Other 
Assessments/ 
Administrative Support, $20,900,000. 
(9) For materials protection, control, and accounting assist-
ance or for destruction of nuclear, radiological, biological, or 
chemical weapons or related materials at any site within the 
former Soviet Union, $10,000,000. 
(10) For transfer to the Secretary of Energy to develop 
a cooperative program with the Grovemment of Russia to elimi-
nate the production of weapons grade plutonium at Russian 
reactors, $10,000,000. 
(11) For dismantlement of biological and chemical weapons 
facilities in the former Soviet Union, $15,000,000. 
(12) For expanding military-to-military programs of the 
United States that focus on countering the threat of prolifera-
tion of weapons of mass destruction to include the security 
forces of the independent states of the former Soviet Union, 
particularly states in the Caucasus region and Central Asia, 
$2,000,000. 
(b) LIMITED AUTHORITY TO VARY INDIVIDUAL AMOUNTS.—(1) 
If the Secretary of Defense determines that it is necessary to 
do so in the national interest, the Secretary may, subject to para-
graph (2), obligate amounts for the purposes stated in any of the 
paragraphs of subsection (a) in excess of the amount specified 
for those purposes in that paragraph, but not in excess of 115 
percent of that amount. However, the total amount obligated for 
the purposes stated in the paragraphs in subsection (a) may not 
by reason of the use of the authority provided in the preceding 
sentence exceed the sum of the amounts specified in those para-
graphs. 
(2) An obligation for the purposes stated in any of the para-
graphs in subsection (a) in excess of the amount specified in that 
paragraph may be made using the authority provided in paragraph 
(1) only after— 
(A) the Secretary submits to Congress a notification of 
the intent to do so together with a complete discussion of 
the justification for doing so; and 
(B) 15 days have elapsed following the date of the 
notification. 
SEC. 1503. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES. 
(a) IN GENERAL.—None of the funds appropriated pursuant 
to the authorization in section 301 for Cooperative Threat Reduction 
programs, or appropriated for such programs for any prior fiscal 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2733 
year and remaining available for obligation, may be obligated or 
expended for any of the following purposes: 
(1) Conducting with Russia any peacekeeping exercise or 
other peacekeeping-related activity. 
(2) Provision of housing. 
(3) Provision of assistance to promote environmental 
restoration. 
(4) Provision of assistance to promote job retraining. 
(b) LIMITATION WITH RESPECT TO DEFENSE CONVERSION ASSIST-
ANCE.—None of the funds appropriated to the Department of 
Defense for fiscal year 1997 may be obligated or expended for 
defense conversion. 
SEC. 1504. LIMITATION ON USE OF FUNDS UNTIL SPECIFIED REPORTS 
ARE SUBMITTED. 
None of the funds appropriated pursuant to the authorization 
in section 301 for Cooperative Threat Reduction programs may 
be obligated or expended until 15 days after the date which is 
the latest of the following: 
(1) The date on which the President submits to Congress 
the determinations required under subsection (c) of section 
211 of Public Law 102-228 (22 U.S.C. 2551 note) with respect 
to any certification transmitted to Congress under subsection 
(b) of that section before the date of the enactment of this 
Act. 
(2) The date on which the Secretary of Defense submits 
to Congress the first report under section 1206(a) of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106; 110 Stat. 471). 
(3) The date on which the Secretary of Defense submits 
to Congress the report for fiscal year 1996 required under 
section 1205(c) of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2883). 
SEC. 1505. AVAILABILITY OF FUNDS. 
Funds appropriated pursuant to the authorization of appropria-
tions in section 301 for Cooperative Threat Reduction programs 
shall be available for obligation for three fiscal years. 
TITLE XVI—DEPARTMENT OF DEFENSE 
CIVILIAN PERSONNEL 
Subtitle A—^Miscellaneous Matters Relating to Personnel Management, Pay, 
and Allowances 
Sec. 1601. Modification of requirement for conversion of military positions to 
civilian positions. 
Sec. 1602. Retention of civilian employee positions at military training bases trans-
ferred to National Guard. 
Sec. 1603. Clarification of applicability of certain management constraints on major 
range and test facility base structure. 
Sec. 1604. Travel expenses and health care for civilian employees of the Depart-
ment of Defense abroad. 
Sec. 1605. Travel, transportation, and relocation allowances for certain former non-
appropriated fund employees. 
Sec. 1606. Employment and salary practices applicable to Department of Defense 
overseas teachers. 
Sec. 1607. Employment and compensation of civilian faculty members at certain 
Department of Defense schools. 
Sec. 1608. Reimoursement of Department of Defense domestic dependent school 
board members for certain expenses. 
110 STAT. 2734 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Sec. 1609. Modification of authority for civilian employees of Department of 
Defense to participate voluntarily in reductions in force. 
Sec. 1610. Wage-board compensatory time off. 
Sec. 1611. Liquidation of restored annual leave that remains unused upon transfer 
of employee from installation being closed or realigned. 
Sec. 1612. Waiver of requirement for repayment of Voluntary Separation Incentive 
pay by former Department of Defense employees reemployed by the 
Government without pay. 
Sec. 1613. Simplification of rules relating to the observance of certain holidays. 
Sec. 1614. Revision of certain travel management authorities. 
Sec. 1615. Failure to comply with veterans* preference requirements to be treated 
as a prohibited personnel practice. 
Sec. 1616. Pilot programs for defense employees converted to contractor employees 
due to privatization at closed military installations. 
Subtitle B—Department of Defense Intelligence Personnel Policy 
Sec. 1631. Short title. 
Sec. 1632. Management of civilian intelligence personnel. 
Sec. 1633. Repeal of superseded sections and clerical and conforming amendments. 
Sec. 1634. Other personnel management authorities. 
Sec. 1635. Effective date. 
Subtitle A—Miscellaneous Matters 
Relat-
ing to Personnel Management, Pay, and 
Allowances 
Certification. 
10 u s e 129a 
note. 
Federal Register, 
publication. 
10 u s e 2687 
note. 
SEC. 1601. MODIFICATION OF REQUIREMENT FOR CONVERSION OF 
MILITARY POSITIONS TO CIVILIAN POSITIONS. 
(a) 
ELIMINATION OF REQUIREMENT FOR FISCAL YEAR 
1997 
CONVERSIONS.—Paragraph (1) of section 1032(a) of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 429; 10 U.S.C. 129a note) is amended— 
(1) by striking out "September 30, 1997" and inserting 
in lieu thereof "September 30, 1996"; and 
(2) by striking out "10,000" and inserting in lieu thereof 
"3,000". 
(b) 
CONFORMING 
AMENDMENTS.—Such 
section 
is 
further 
amended— 
(1) by striking out paragraph (2); and 
(2) by redesignating paragraph (3) as paragraph (2). 
(c) EFFECTIVE DATE.—(1) The amendments made by this section 
shall take effect 30 days after the date on which the Secretary 
of Defense submits to Congress a certification that at least 3,000 
military positions have been converted to civilian positions during 
fiscal year 1996 as required by section 1032(a) of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 429). 
(2) The Secretary shall publish in the Federal Register a notice 
of the submission of any certification to Congress under paragraph 
(1), including the date on which the certification was submitted 
to Congress. 
SEC. 1602. R E T E N T I O N OF CIVILIAN EMPLOYEE POSITIONS AT MILI-
TARY T R A I N I N G 
B A S E S TRANSFERRED TO NATIONAL 
GUARD. 
(a) RETENTION OF EMPLOYEE POSITIONS.—In the case of a mili-
tary training installation described in subsection (b), the Secretary 
of Defense shall retain civilian employee positions of the Depart-
ment of Defense at the installation after transfer to the National 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2735 
Guard to facilitate active and reserve component training at the 
installation. The Secretary shall determine the extent to which 
positions at the installation are to be retained as positions of 
the Department of Defense in consultation with the Adjutant 
General of the National Guard of the State in which the installation 
is located. 
(b) MILITARY TRAINING INSTALLATIONS AFFECTED.—^This section 
applies with respect to each military training installation that— 
(1) was approved for closure in 1995 under the Defense 
Base Closure and Realignment Act of 1990 (part A of title 
XXIX of Public Law 101-510; 10 U.S.C. 2687 note); 
(2) is scheduled for transfer to National Guard operation 
and control; and 
(3) will continue to be used, after such transfer, to provide 
training support to active and reserve components of the Armed 
Forces. 
(c) MAXIMUM POSITIONS RETAINED.—^The number of civilian 
employee positions retained at an installation under this section 
may not exceed 20 percent of the Federal civilian workforce 
employed at the installation as of September 8, 1995. 
(d) REMOVAL OF POSITION.—^The requirement to maintain a 
civilian employee position at an installation under this section 
terminates upon the later of the following: 
(1) The date of the departure or retirement from that 
position by the civilian employee initially employed or retained 
in the position as a result of this section. 
(2) The date on which the Secretary certifies to Congress 
that the position is no longer required to ensure that effective 
support is provided at the installation for active and reserve 
component training. 
SEC. 1603. CLARIFICATION OF APPLICABILITY OF CERTAIN MANAGE-
MENT CONSTRAINTS 
ON MAJOR RANGE AND TEST 
FACILITY BASE STRUCTURE. 
Section 129 of title 10, United States Code, is amended— 
(1) in subsection (c)(1), by inserting ", the Major Range 
and Test Facility Base," after "industrial-type activities"; and 
(2) by adding at the end the following: 
"(e) Subsections (a), (b), and (c) apply to the Major Range 
and Test Facility Base (MRTFB) at the installation level. With 
respect to the MRTFB structure, the term 'funds made available' 
includes both direct appropriated funds and funds provided by 
MRTFB customers.". 
SEC. 1604. TRAVEL EXPENSES AND HEALTH CARE FOR CIVILIAN 
EMPLOYEES OF THE DEPARTMENT OF DEFENSE ABROAD. 
(a) IN GENERAL.—Chapter 81 of title 10, United States Code, 
is amended by adding at the end the following new section: 
"§ 1599b. Employees abroad: travel expenses; health care 
"(a) IN GENERAL.—^The Secretary of Defense may provide 
civilian employees, and members of their families, abroad with 
benefits that are comparable to certain benefits that are provided 
by the Secretary of State to members of the Foreign Service and 
their families abroad as described in subsections (b) and (c). The 
Secretary may designate the employees and members of families 
who are eligible to receive the benefits. 
110 STAT. 2736 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(b) TRAVEL AND RELATED EXPENSES.—The Secretary of Defense 
may pay travel expenses and related expenses for purposes and 
in amounts that are comparable to the purposes for which, and 
the amounts in which, travel and related expenses are paid by 
the Secretary of State under section 901 of the Foreign Service 
Act of 1980 (22 U.S.C. 4081). 
"(c) HEALTH CARE PROGRAM.—The Secretary of Defense may 
establish a health care program that is comparable to the health 
care program established by the Secretary of State under section 
904 of the Foreign Service Act of 1980 (22 U.S.C. 4084). 
"(d) ASSISTANCE.—^The Secretary of Defense may enter into 
agreements with the heads of other departments and agencies of 
the Government in order to facilitate the payment of expenses 
authorized by subsection (b) and to carry out a health care pro-
gram authorized by subsection (c). 
"(e) ABROAD DEFINED.—In this section, the term 'abroad' means 
outside— 
"(1) the United States; and 
"(2) the territories and possessions of the United States.". 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following 
new item: 
"1599b. Employees abroad: travel expenses; health care.". 
SEC. 1606. TRAVEL, TRANSPORTATION, AND RELOCATION ALLOW-
ANCES FOR CERTAIN FORMER NONAPPROPRIATED FUND 
EMPLOYEES. 
(a) IN GENERAL.—(1) Subchapter II of chapter 57 of title 5, 
United States Code, is amended by adding at the end the following 
new section: 
'*§5736. Travel, transportation, and relocation expenses of 
certain nonappropriated fund employees 
"An employee of a nonappropriated fund instrumentality of 
the Department of Defense or the Coast Guard described in section 
2105(c) of this title who moves, without a break in service of 
more than 3 days, to a position in the Department of Defense 
or the Coast Guard, respectively, may be authorized travel, 
transportation, and relocation expenses and allowances under the 
same conditions and to the same extent authorized by this sub-
chapter for transferred employees.". 
(2) The table of sections at the beginning of chapter 57 of 
such title is amended by inserting after the item relating to section 
5735 the following new item: 
"5736. Travel, transportation, and relocation expenses of certain nonappropriated 
fund employees.". 
5 use 5736 note. 
(b) APPLICABILITY.—Section 5736 of title 5, United States Code 
(as added by subsection (a)(1)), shall apply to moves between posi-
tions as described in such section that are effective on or after 
October 1, 1996. 
SEC. 1
6
0
6
. EMPLOYMENT AND SALARY 
PRACTICES 
APPLICABLE 
TO 
DEPARTMENT 
OF 
DEFENSE 
OVERSEAS 
TEACHERS. 
(a) EXPANSION OF SCOPE OF EDUCATORS COVERED.—Section 
2 of the Defense Department Overseas Teachers Pay and Personnel 
Practices Act (20 U.S.C. 901) is amended— 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2737 
(1) in subparagraph (A) of paragraph (1), by inserting ", 
or are performed by an individual who carried out certain 
teaching activities identified in regulations prescribed by the 
Secretary of Defense" after "Defense,"; and 
(2) by striking out subparagraph (C) of paragraph (2) and 
inserting in lieu thereof the following: 
"(C) who is employed in a teaching position described 
in paragraph (1).". 
(b) TRANSFER OF RESPONSIBILITY FOR EMPLOYMENT AND SALARY 
PRACTICES.—Section 5 of such Act (20 U.S.C. 903) is amended— 
(1) in subsection (a)— 
(A) by striking out "Secretary of each military depart-
ment in the Department of Defense" and inserting in lieu 
thereof "Secretary of Defense"; and 
(B) by striking out "his military department" and 
inserting in lieu thereof "the Department of Defense"; 
(2) in subsection (b)— 
(A) in the matter preceding paragraph (1), by striking 
out "secretary of each military department—" and inserting 
in lieu thereof "Secretary of Defense—"; and 
(B) in paragraph (1), by striking out "his military 
department," and inserting in lieu thereof "the Department 
of Defense"; 
(3) in subsection (c)— 
(A) by striking out "Secretary of each military depart-
ment" and inserting in lieu thereof "Secretary of Defense"; 
and 
(B) by striking out "his military department" and 
inserting in lieu thereof "the Department of Defense"; and 
(4) in subsection (d), by striking out "Secretary of each 
military department" and inserting in lieu thereof "Secretary 
of Defense". 
SEC. 1607. EMPLOYMENT AND COMPENSATION OF CIVILIAN FACULTY 
MEMBERS AT CERTAIN 
DEPARTMENT 
OF DEFENSE 
SCHOOLS. 
(a) FACULTIES.—Subsection (c) of section 1595 of title 10, United 
States Code, is amended by adding at the end the following new 
paragraphs: 
"(4) The English Language Center of the Defense Language 
Institute. 
"(5) The Asia-Pacific Center for Security Studies.". 
(b) CERTAIN ADMINISTRATORS.—Such section is further amended 
by adding at the end the following new subsection: 
"(f) APPLICATION TO DIRECTOR AND DEPUTY DIRECTOR AT ASIA-
PACIFIC CENTER FOR SECURITY STUDIES.—In the case of the Asia-
Pacific Center for Security Studies, this section also applies with 
respect to the Director and the Deputy Director.". 
SEC. 1608. REIMBURSEMENT OF DEPARTMENT OF DEFENSE DOMES-
TIC DEPENDENT SCHOOL BOARD MEMBERS FOR CERTAIN 
EXPENSES. 
Section 2164(d) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
"(7) The Secretary may provide for reimbursement of a school 
board member for expenses incurred by the member for travel, 
transportation, lodging, meals, program fees, activity fees, and other 
appropriate expenses that the Secretary determines are reasonable 
110 STAT. 2738 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Regulations. 
Termination 
date. 
and necessary for the performance of school board duties by the 
member.". 
SEC. 1609. MODIFICATION OF AUTHORITY FOR CIVILIAN EMPLOYEES 
OF DEPARTMENT OF DEFENSE TO PARTICIPATE VOLUN-
TARILY IN REDUCTIONS IN FORCE. 
Subsection (f) of section 3502 of title 5, United States Code, 
is amended to read as follows: 
"(f)(1) The Secretary of Defense or the Secretary of a military 
department may— 
"(A) separate from service any employee who volunteers 
to be separated under this subparagraph even though the 
employee is not otherwise subject to separation due to a reduc-
tion in force; and 
"(B) for each employee voluntarily 
separated 
under 
subparagraph (A), retain an employee in a similar position 
who would otherwise be separated due to a reduction in force. 
"(2) The separation of an employee under paragraph (1)(A) 
shall be treated as an involuntary separation due to a reduction 
in force. 
"(3) An employee with critical knowledge and skills (as defined 
by the Secretary concerned) may not participate in a voluntary 
separation under paragraph (1)(A) if the Secretary concerned deter-
mines that such participation would impair the performance of 
the mission of the Department of Defense or the military depart-
ment concerned. 
"(4) The regulations prescribed under this section shall incor-
porate the authority provided in this subsection. 
"(5) No authority under paragraph (1) may be exercised after 
September 30, 2001.". 
SEC. 1610. WAGE-BOARD COMPENSATORY TIME OFF. 
(a) IN GENERAL.—Section 5543 of title 5, United States Code, 
is amended— 
(1) by redesignating subsection (b) as subsection (c); and 
(2) by inserting after subsection (a) the following new sub-
section (b): 
"(b) The head of an agency may, on request of an employee, 
grant the employee compensatory time off from the employee's 
scheduled tour of duty instead of payment under section 5544 
or section 7 of the Fair Labor Standards Act of 1938 for an equal 
amount of time spent in irregular or occasional overtime work. 
An agency head may not require an employee to be compensated 
for overtime work with an equivalent amount of compensatory 
time-off from the employee's tour of duty.". 
(b) CONFORMING AMENDMENT.—Section 5544(c) of title 5, 
United States Code, is amended by inserting "and the provisions 
of section 5543(b)" after "the last two sentences of subsection (a)". 
SEC. 1611. UQUIDATION 
OF 
RESTORED 
ANNUAL 
LEAVE 
THAT 
REMAINS UNUSED UPON TRANSFER OF EMPLOYEE FROM 
INSTALLATION BEING CLOSED OR REALIGNED. 
(a) LUMP-SUM PAYMENT REQUIRED.—Section 5551 of title 5, 
United States Code, is amended by adding at the end the following: 
"(c)(1) Annual leave that is restored to an employee of the 
Department of Defense under section 6304(d) of this title by reason 
of the operation of paragraph (3) of such section and remains 
unused upon the transfer of the employee to a position described 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2739 
in paragraph (2) shsill be liquidated by payment of a lump-sum 
for such leave to the employee upon the transfer. 
"(2) A position referred to in paragraph (1) is a position in 
a department or agency of the Federal Grovemment outside the 
Department of Defense or a Department of Defense position that 
is not located at a Department of Defense installation being closed 
or realigned as described in section 6304(d)(3) of this title.". 
(b) APPLICABILITY.—Subsection (c) of section 5551 of title 5, 
5 use 5551 note. 
United States Code (as added by subsection (a)), shall apply with 
respect to transfers described in such subsection (c) that take effect 
on or after the date of the enactment of this Act. 
SEC. 1612. WAIVER OF REQUIREMENT FOR REPAYMENT OF VOL-
UNTARY 
SEPARATION 
INCENTIVE 
PAY BY 
FORMER 
DEPARTMENT OF DEFENSE EMPLOYEES REEMPLOYED BY 
THE GOVERNMENT WITHOUT PAY. 
(a) IN GENERAL.—Section 5597(g) of title 5, United States Code, 
is amended by adding at the end the following new paragraph: 
"(5) If the employment is without compensation, the appointing 
official may waive the repajnnent.". 
(b) APPLICABILITY.—^The amendment made by subsection (a) 
5 USC 5597 note, 
shall apply with respect to employment accepted on or after the 
date of the enactment of this Act. 
SEC. 1613. SIMPUFICATION OF RULES RELATING TO THE OBSERV-
ANCE OF CERTAIN HOLIDAYS. 
Section 6103 of title 5, United States Code, is amended by 
adding at the end the following new subsection: 
"(d)(1) For purposes of this subsection— 
"(A) the term 'compressed schedule' has the meaning given 
such term by section 6121(5); and 
"(B) the term 'adverse agency impact' has the meaning 
given such term by section 6131(b). 
"(2) An agency may prescribe rules under which employees 
on a compressed schedule may, in the case of a holiday that occurs 
on a regularly scheduled non-workday for such employees, and 
notwithstanding any other provision of law or the terms of any 
collective bargaining agreement, be required to observe such holiday 
on a workday other than as provided by subsection (b), if the 
agency head determines that it is necessary to do so in order 
to prevent an adverse agency impact.". 
SEC. 1614. REVISION 
OF 
CERTAIN 
TRAVEL 
MANAGEMENT 
AUTHORITIES. 
(a) REPEAL OF REQUIREMENTS RELATING TO FIRE-SAFE ACCOM-
MODATIONS.—(1) Section 5707 of title 5, United States Code, is 
amended by striking out subsection (d). 
(2) Subsection (b) of section 5 of the Hotel and Motel Fire 
Safety Act of 1990 (Public Law 101-391; 104 Stat. 751; 5 U.S.C. 
5707 note) is repealed. 
(b) REPEAL OF PROHIBITION ON PAYMENT OF LODGING EXPENSES 
OF DEPARTMENT OF DEFENSE EMPLOYEES AND OTHER CIVILIANS 
WHEN ADEQUATE GOVERNMENT QUARTERS ARE AVAILABLE.—(1) Sec-
tion 1589 of title 10, United States Code, is repealed. 
(2) The table of sections at the beginning of chapter 81 of 
such title is amended by striking out the item relating to such 
section. 
110 STAT. 2740 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 1615. FAILURE TO COMPLY WITH VETERANS' PREFERENCE 
REQUIREMENTS TO BE TREATED AS A PROfflBITED 
PERSONNEL PRACTICE. 
(a) IN GENERAL.—(1) Chapter 81 of title 10, United States 
Code, as amended by section 1604, is further amended by adding 
at the end the following new section: 
*
*
§ 1599c. Veterans* preference requirements: Department of 
Defense failure to comply treated as a prohibited 
personnel practice 
"(a) PROHIBITED PERSONNEL PRACTICE.—It is a prohibited 
personnel practice for a person referred to in subsection (b) who 
has authority described in that subsection— 
"(1) knowingly to take, recommend, or approve any person-
nel action with respect to such authority if the taking of such 
action violates a veterans' preference; or 
"(2) knowingly to fail to take, recommend, or approve any 
personnel action with respect to such authority, if the failure 
to take such action violates a veterans' preference. 
"(b) 
PERSONS 
COVERED.—Subsection 
(a) 
applies 
witn 
respect to— 
"(1) an officer or employee of the Department of Defense 
who has authority to take, direct others to take, recommend, 
or approve a personnel action with respect to an employee 
of the Department of Defense; and 
"(2) a member of the armed forces who has such authority. 
"(c) VETERANS' PREFERENCE DEFINED.—(1) In this section, the 
term 'vetergms' preference' means any of the following provisions 
of law: 
"(A) Sections 2108, 3305(b), 3309, 3310, 3311, 3312, 3313, 
3314, 3315, 3316, 3317(b), 3318, 3320, 3351, 3352, 3363, 3501, 
3502(b), 3504, and 4303(e) of title 5 and (with respect to a 
preference eligible referred to in section 7511(a)(1)(B) of such 
title) subchapter II of chapter 75 and section 7701 of such 
title. 
"(B) Sections 943(c)(2) and 1784(c) of this title. 
"(C) Section 1308(b) of the Alaska National Interest Lands 
Conservation Act (16 U.S.C. 3198(b)). 
"(D) Section 301(c) of the Foreign Service Act of 1980 
(22 U.S.C. 3941(c)). 
"(E) Section 3(a)(ll) of the Administrative Office of the 
United States Courts Personnel Act of 1990 (28 U.S.C. 602 
note). 
"(F) Sections 106(f), 7281(e), and 7802(5) of title 38. 
"(G) Section 1005(a) of title 39. 
"(H) Any other provision of law that the Director of the 
Office of Personnel Management designates in regulations as 
being a veterans' preference for the purposes of this section. 
"(2) For the purposes of this section, such term includes 
any regulation prescribed under subsection (b) or (c) of section 
1302 of title 5 and any other regulation that implements a provision 
of law referred to in paragraph (1). 
"(d) PERSONNEL ACTION DEFINED.—In this section, the term 
'personnel action' has the meaning given that term in section 2302 
of title 5.". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2741 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"1599c. Veterans' preference requirements: Department of Defense failure to comply 
treated as a prohibited personnel practice.". 
(b) APPLICABILITY OF TITLE 5 PROCEDURES AND SANCTIONS.— 
Paragraph (1) of section 2302(a) of title 5, United States Code, 
is amended to read as follows: 
"(1) For purposes of this title, 'prohibited personnel practice' 
means the following: 
"(A) Any action described in subsection (b) of this section. 
"(B) Any action or failure to act that is designated as 
a prohibited personnel action under section 1599c(a) of title 
10.". 
(c) REPORTING REQUIREMENT.—^Not later than six months after 
the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a written report on— 
(1) the implementation of— 
(A) section 1599c of title 10, United States Code, as 
added by subsection (a); and 
(B) subparagraph (B) of section 2302(a)(1) of title 5, 
United States Code, as added by subsection (b); and 
(2) the administration of veterans' preference requirements 
by the Department of Defense generally. 
SEC. 1616. PILOT PROGRAMS FOR DEFENSE EMPLOYEES CONVERTED 
5 USC 8331 note. 
TO CONTRACTOR EMPLOYEES DUE TO PRIVATIZATION AT 
CLOSED MILITARY INSTALLATIONS. 
(a) 
PILOT 
PROGRAMS AUTHORIZED.—(1) 
The 
Secretary 
of 
Defense, after consultation with the Director of the Office of Person-
nel Management, may establish one or more pilot programs under 
which Federal retirement benefits are provided in accordance with 
this section to persons who convert from Federal employment to 
employment by a Department of Defense contractor in connection 
with the privatization of the performance of functions at selected 
military installations being closed under the base closure and 
realignment process. 
(2) The Secretary of Defense shall select the military installa-
tions to be covered by a pilot program under this section. 
(b) ELIGIBLE CONVERTED EMPLOYEES.—(1) A person is a con-
verted employee eligible for Federal retirement benefits under this 
section if the person is a former employee of the Department of 
Defense (other than a temporary employee) who— 
(A) while employed by the Department of Defense at a 
military installation selected to participate in a pilot program, 
performed a function that was recommended, in a report of 
the Defense Base Closure and Realignment 
Commission 
submitted to the President under the Defense Base Closure 
and Realignment Act of 1990 (title XXIX of Public Law 101-
510; 10 U.S.C. 2687 note), to be privatized for performance 
by a defense contractor at the same installation or in the 
vicinity of the installation; 
(B) while so employed, separated from Federal service after 
being notified that the employee would be separated in a reduc-
tion in force resulting from such privatization; 
(C) at the time separated from Federal service, was covered 
under the Civil Service Retirement System, but was not eligible 
110 STAT. 2742 
PUBLIC LAW 104-201—SEPT. 23, 1996 
for an immediate annuity under the Civil Service Retirement 
System; 
(D) does not withdraw retirement contributions under sec-
tion 8342 of title 5, United States Code; 
(E) within 60 days following such separation, is employed 
by the defense contractor selected to privatize the function 
to perform substantially the same function performed by the 
person before the separation; and 
(F) remains employed by the defense contractor (or a 
successor defense contractor) or subcontractor of the defense 
contractor (or successor defense contractor) until attaining early 
deferred retirement age (unless the employment is sooner invol-
untarily terminated for reasons other than performance or con-
duct of the employee). 
(2) A person who, under paragraph (1), would otherwise be 
eligible for an early deferred annuity under this section shall not 
be eligible for such benefits if the person received separation pay 
or severance pay due to a separation described in subparagraph 
(B) of that paragraph unless the person repays the full amount 
of such pay with interest (computed at a rate determined appro-
priate by the Director of the Office of Personnel Management) 
to the Department of Defense before attaining early deferred retire-
ment age. 
(c) RETIREMENT BENEFITS OF CONVERTED EMPLOYEES.—In the 
case of a converted employee covered by a pilot program, payment 
of a deferred annuity for which the converted employee is eligible 
under section 8338(a) of title 5, United States Code, shall commence 
on the first day of the first month that begins after the date 
on which the converted employee attains early deferred retirement 
age, notwithstanding the age requirement under that section. If 
the employment of a converted employee is involuntarily terminated 
by the defense contractor or subcontractor as described in subsection 
(b)(1)(F) and the converted employee resumes Federal service before 
the converted employee attains early deferred retirement age, the 
converted employee shall once again be covered under the Civil 
Service Retirement System instead of the pilot program. 
(d) COMPUTATION OF AVERAGE PAY.—(1)(A) This paragraph 
applies to a converted employee who was employed in a position 
classified under the General Schedule immediately before the 
employee's covered separation from Federal service. 
(B) Subject to subparagraph (C), for purposes of computing 
the deferred annuity for a converted employee referred to in 
subparagraph (A), the average pay of the converted employee, com-
puted under section 8331(4) of title 5, United States Code, as 
of the date of the employee's covered separation from Federal serv-
ice, shall be adjusted at the same time and by the same percentage 
that rates of basic pay are increased under section 5303 of such 
title during the period beginning on that date and ending on the 
date on which the converted employee attains early deferred retire-
ment age. 
(C) The average pay of a converted employee, as adjusted 
under subparagraph (B), may not exceed the amount to which 
an annuity of the converted employee could be increased under 
section 8340 of title 5, United States Code, in accordance with 
the limitation in subsection (g)(1) of such section (relating to maxi-
mum pay, final pay, or average pay). 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2743 
(2)(A) This paragraph applies to a converted employee who Applicability. 
was a prevailing rate employee (as defined under section 5342(2) 
of title 5, United States Code) immediately before the employee's 
covered separation from Federal service. 
(B) For purposes of computing the deferred annuity for a con-
verted employee referred to in subparagraph (A), the average pay 
of the converted employee, computed under section 8331(4) of title 
5, United States Code, as of the date of the employee's covered 
separation from Federal service, shall be adjusted at the same 
time and by the same percentage that pay rates for positions 
that are in the same area as, and are comparable to, the last 
position the converted employee held as a prevailing rate employee, 
are increased under section 5343(a) of such title during the period 
beginning on that date and ending on the date on which the 
converted employee attains early deferred retirement age. 
(e) PAYMENT OF UNFUNDED LIABILITY.—(1) The military depart-
ment concerned shall be liable for that portion of any estimated 
increase in the unfunded liability of the Civil Service Retirement 
and Disability Fund established under section 8348 of title 5, United 
States Code, which is attributable to any benefits payable from 
such Fund to a converted employee, and any survivor of a converted 
employee, when the increase results from— 
(A) an increase in the average pay of the converted 
employee under subsection (d) upon which such benefits are 
computed; and 
(B) the commencement of an early deferred annuity in 
accordance with this section before the attainment of 62 years 
of age by the converted employee. 
(2) The estimated increase in the unfunded liability for each 
department referred to in paragraph (1) shall be determined by 
the Director of the Ofiice of Personnel Management. In making 
the determination, the Director shall consider any savings to the 
Fund as a result of a pilot program established under this section. 
The Secretary of the military department concerned shall pay the 
amount so determined to the Director in 10 equal annual install-
ments with interest computed at the rate used in the most recent 
valuation of the Civil Service Retirement System, with the first 
payment thereof due at the end of the fiscal year in which an 
increase in average pay under subsection (d) becomes effective. 
(f) CONTRACTOR SERVICE NOT CREDITABLE.—Service performed 
by a converted employee for a defense contractor after the employ-
ee's covered separation from Federal service is not creditable service 
for purposes of subchapter III of chapter 83 of title 5, United 
States Code. 
(g) RECEIPT OF BENEFITS WHILE EMPLOYED BY A DEFENSE 
CONTRACTOR.—A converted employee may commence receipt of an 
early deferred annuity in accordance with this section while continu-
ing to work for a defense contractor. 
(h) LUMP-SUM CREDIT PAYMENT.—If a converted employee dies 
before attaining early deferred retirement age, such employee shall 
be treated as a former employee who dies not retired for purposes 
of pajonent of the lump-sum credit under section 8342(d) of title 
5, United States Code. 
(i) CONTINUED FEDERAL HEALTH BENEFITS COVERAGE.—Not-
withstanding section 8905a(e)(l)(A) of title 5, United States Code, 
the continued coverage of a converted employee for health benefits 
under chapter 89 of such title by reason of the application of 
110 STAT. 2744 
PUBLIC LAW 104-201—SEPT. 23, 1996 
section 8905a of such title to such employee shall terminate 90 
days after the date of the employee's covered separation from 
Federal employment. For the purposes of the preceding sentence, 
a person who, except for subsection (b)(2), would be a converted 
employee shall be considered a converted employee. 
(j) REPORT BY GENERAL ACCOUNTING OFFICE.—The Comptroller 
General shall conduct a study of each pilot program, if any, estab-
lished under this section and submit a report on the pilot program 
to Congress not later than two years after the date on which 
the program is established. The report shall contain the following: 
(1) A review and evaluation of the program, including— 
(A) an evaluation of the success of the privatization 
outcomes of the program; 
(B) a comparison and evaluation of such privatization 
outcomes with the privatization outcomes with respect to 
facilities at other military installations closed or realigned 
under the base closure laws; 
(C) an evaluation of the impact of the program on 
the Federal workforce and whether the program results 
in the maintenance of a skilled workforce for defense con-
tractors at an acceptable cost to the military department 
concerned; and 
(D) an assessment of the extent to which the program 
is a cost-effective means of facilitating privatization of the 
performance of Federal activities. 
(2) Recommendations relating to the expansion of the pro-
gram to other installations and employees. 
(3) Any other recommendation relating to the program, 
(k) IMPLEMENTING REGULATIONS.—Not later than 30 days after 
the Secretary of Defense notifies the Director of the Office of Person-
nel Management of a decision to establish a pilot program under 
this section, the Director shall prescribe regulations to carry out 
the provisions of this section with respect to that pilot program. 
Before prescribing the regulations, the Director shall consult with 
the Secretary. 
(1) DEFINITIONS.—In this section: 
(1) The term "converted employee" means a person who, 
pursuant to subsection (b), is eligible for benefits under this 
section. 
(2) The term "covered separation from Federal service" 
means a separation from Federal service as described under 
subsection (b)(1)(B). 
(3) The term "Civil Service Retirement System" means 
the retirement system under subchapter III of chapter 83 of 
title 5, United States Code. 
(4) The term "defense contractor" means any entity that— 
(A) contracts with the Department of Defense to per-
form a function previously performed by Department of 
Defense employees; 
(B) performs that function at the same installation 
at which such function was previously performed by 
Department of Defense employees or in the vicinity of 
that installation; and 
(C) is the employer of one or more converted employees. 
(5) The term "early deferred retirement age" means the 
first age at which a converted employee would have been 
eligible for immediate retirement under subsection (a) or (b) 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2745 
of section 8336 of title 5, United States Code, if such converted 
employee had remained an employee within the meaning of 
section 8331(1) of such title continuously until attaining such 
age. 
(6) The term "severance pay" means severance pay payable 
under section 5595 of title 5, United States Code. 
(7) The term "separation pay" means separation pay pay-
able under section 5597 of title 5, United States Code. 
(m) APPLICATION OF PILOT PROGRAM.—In the event that a 
pilot program is established for a military installation, the pilot 
program shall apply to a covered separation from Federal service 
by an employee of the Department of Defense at the installation 
occurring on or after August 1, 1996. 
Subtitle B—Department of Defense 
Intelligence Personnel Policy 
SEC. 1631. SHORT TITLE. 
This subtitle may be cited as the "Department of Defense 
Civilian Intelligence Personnel Policy Act of 1996". 
SEC. 1632. MANAGEMENT OF CIVILIAN INTELLIGENCE PERSONNEL. 
(a) CONSOLIDATION AND STANDARDIZATION OF CIVILIAN PERSON-
NEL POLICY.—Chapter 83 of title 10, United States Code, is 
amended— 
(1) by redesignating section 1602 as section 1621 and 
transferring that section so as to appear after section 1605; 
(2) by redesignating sections 1606 and 1608 as section 
1622 and 1623, respectively; and 
(3) by striking out the chapter heading, the table of sec-
tions, and sections 1601, 1603, and 1604 and inserting in lieu 
thereof the following: 
"CHAPTER 83—CIVILIAN DEFENSE INTELLIGENCE 
EMPLOYEES 
"Subchapter 
Sec. 
"I. Defense-Wide Intelligence Personnel Policy 
1601 
"II. Defense Intelligence Agency Personnel 
1621 
"SUBCHAPTER I—DEFENSE-WIDE INTELLIGENCE 
PERSONNEL POLICY 
Department of 
Defense Civilian 
Intelligence 
Personnel Policy 
Act of 1996. 
10 u s e 1601 
note. 
"Sec. 
"1601. Civilian intelligedce personnel: general authority to establish excepted posi-
tions, appoint personnel, and fix rates of pay. 
"1602. Basic pay. 
"1603. Additional compensation, incentives, and allowances. 
"1605. Benefits for certain employees assigned outside the United States. 
"1606. Defense Intelligence Senior Executive Service. 
"1607. Intelligence Senior Level positions. 
"1608. Time-limited appointments. 
"1609. Termination of defense intelligence employees. 
"1610. Reductions and other adjustments in force. 
"1611. Postemployment assistance: certain terminated intelligence employees. 
"1612. Merit system principles and civil service protections: applicability. 
"1613. Miscellaneous provisions. 
"1614. Definitions. 
110 STAT. 2746 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"§ 1601. Civilian intelligence personnel: general authority to 
establish excepted positions, appoint personnel, 
and Hx rates of pay 
"(a) GENERAL AuTHORlTY.^The Secretary of Defense may— 
"(1) establish, as positions in the excepted service, such 
defense inteUigence positions in the intelHgence components 
of the Department of Defense and the mihtary departments 
as the Secretary determines necessary to carry out the 
intelHgence functions of those components and departments, 
including— 
"(A) Intelligence Senior Level positions designated 
under section 1607 of this title; and 
"(B) positions in the Defense Intelligence Senior Execu-
tive Service; 
"(2) appoint individuals to those positions (after taking 
into consideration the availability of preference eligibles for 
appointment to those positions); and 
"(3) fix the compensation of such individuals for service 
in those positions. 
"(b) CONSTRUCTION WITH OTHER LAWS.—^The authority of the 
Secretary of Defense under subsection (a) applies without regard 
to the provisions of any other law relating to the appointment, 
number, classification, or compensation of employees. 
"§ 1602. Basic pay 
"(a) AUTHORITY To Fix RATES OF BASIC PAY.—^The Secretary 
of Defense (subject to the provisions of this section) shall fix the 
rates of basic pay for positions established under section 1601 
of this title in relation to the rates of basic pay provided in subpart 
D of part III of title 5 for positions subject to that subpart which 
have corresponding levels of duties and responsibilities. 
"(b) MAXIMUM RATES.—^A rate of basic pay fixed under sub-
section (a) for a position established under section 1601 of this 
title may not (except as otherwise provided by law) exceed— 
"(1) in the case of a Defense Intelligence Senior Executive 
Service position, the maximum rate provided in section 5382 
of title 5; 
"(2) in the case of an Intelligence Senior Level position, 
the maximum rate provided in section 5382 of title 5; and 
"(3) in the case of any other position, the maximum rate 
provided in section 5306(e) of title 5. 
"(c) 
PREVAILING RATE SYSTEMS.—^The Secretary of Defense 
may, consistent with section 5341 of title 5, adopt such provisions 
of that title as provide for prevailing rate systems of basic pay 
and may apply those provisions to positions for civilian employees 
in or under which the Department of Defense may employ individ-
uals described by section 5342(a)(2)(A) of that title. 
*
*
§ 1603. Additional compensation, incentives, and allowances 
"(a) ADDITIONAL COMPENSATION BASED ON TITLE 5 AUTHORI-
TIES.—The Secretary of Defense may provide employees in defense 
intelligence positions compensation (in addition to basic pay), 
including benefits, incentives, and allowances, consistent with, and 
not in excess of the level authorized for, comparable positions 
authorized by title 5. 
"(b) ALLOWANCES BASED ON LIVING COSTS AND ENVIRONMENT.— 
(1) In addition to basic pay, employees in defense intelligence posi-
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2747 
tions who are citizens or nationals of the United States and are 
stationed outside the continental United States or in Alaska may 
be paid an allowance, in accordance with regulations prescribed 
by the Secretary of Defense, while they are so stationed. 
"(2) An allowance under this subsection shall be based on— 
"(A) living costs substantially higher than in the District 
of Columbia; 
"(B) conditions of environment which (i) differ substantially 
from conditions of environment in the continental United 
States, and (ii) warrant an allowance as a recruitment incen-
tive; or 
"(C) both of the factors specified in subparagraphs (A) 
and (B). 
"(3) An allowance under this subsection may not exceed the 
allowance authorized to be paid by section 5941(a) of title 5 for 
employees whose rates of basic pay are fixed by statute.". 
(b) MATTERS OTHER THAN PAY AND BENEFITS.—Such chapter 
is further amended by inserting after section 1605 the following 
new sections: 
*
*
§ 1606. Defense Intelligence Senior Executive Service 
"(a) ESTABLISHMENT.—^The Secretary of Defense may establish 
a Defense Intelligence Senior Executive Service for defense intel-
ligence positions established pursuant to section 1601(a) of this 
title that are equivalent to Senior Executive Service positions. The 
number of positions in the Defense Intelligence Senior Executive 
Service may not exceed 492. 
"(b) REGULATIONS CONSISTENT WITH TITLE 5 PROVISIONS.— 
The Secretary of Defense shall prescribe regulations for the Defense 
Intelligence Senior Executive Service which are consistent with 
the requirements set forth in sections 3131, 3132(a)(2), 3396(c), 
3592, 3595(a), 5384, and 6304 of title 5, subsections (a), (b), and 
(c) of section 7543 of such title (except that any hearing or appeal 
to which a member of the Defense Intelligence Senior Executive 
Service is entitled shall be held or decided pursuant to those regula-
tions), and subchapter II of chapter 43 of such title. To the extent 
that the Secretary determines it practicable to apply to members 
of, or applicants for, the Defense Intelligence Senior Executive 
Service other provisions of title 5 that apply to members of, or 
applicants for, the Senior Executive Service, the Secretary shall 
also prescribe regulations to implement those provisions with 
respect to the Defense Intelligence Senior Executive Service. 
"(c) AWARD OF RANK TO MEMBERS OF THE DEFENSE INTEL-
LIGENCE SENIOR EXECUTIVE SERVICE.—^The President, based on the 
recommendations of the Secretary of Defense, may award a rank 
referred to in section 4507 of title 5 to members of the Defense 
Intelligence Senior Executive Service. The award of such rank shall 
be made in a manner consistent with the provisions of that section. 
*
*
§ 1607. Intelligence Senior Level positions 
"(a) DESIGNATION OF POSITIONS.—The Secretary of Defense may 
designate as an Intelligence Senior Level position any defense intel-
ligence position that, as determined by the Secretary— 
"(1) is classifiable above grade GS-15 of the General 
Schedule; 
110 STAT. 2748 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(2) does not satisfy functional or program management 
criteria for being designated a Defense Intelligence Senior 
Executive Service position; and 
"(3) has no more than minimal supervisory responsibilities. 
"(b) REGULATIONS.—Subsection (a) shall be carried out in 
accordance with regulations prescribed by the Secretary of Defense. 
*'§ 1608. Time-limited appointments 
"(a) AUTHORITY FOR TIME-LIMITED APPOINTMENTS.—^The Sec-
retary of Defense may by regulation authorize appointing officials 
to make time-limited appointments to defense intelligence positions 
specified in the regulations. 
"(b) REVIEW OF USE OF AUTHORITY.—^The Secretary of Defense 
shall review each time-limited appointment in a defense intelligence 
position at the end of the first year of the period of the appointment 
and determine whether the appointment should be continued for 
the remainder of the period. The continuation of a time-limited 
appointment after the first year shall be subject to the approval 
of the Secretary. 
"(c) 
CONDITION ON PERMANENT APPOINTMENT TO DEFENSE 
INTELLIGENCE SENIOR EXECUTIVE SERVICE.—^An employee serving 
in a defense intelligence position pursuant to a time-limited appoint-
ment is not eligible for a permanent appointment to a Defense 
Intelligence Senior Executive Service position (including a position 
in which the employee is serving) unless the employee is selected 
for the permanent appointment on a competitive basis. 
"(d) TIME-LIMITED APPOINTMENT DEFINED.—In this section, the 
term 'time-limited appointment' means an appointment (subject 
to the condition in subsection (b)) for a period not to exceed two 
years. 
'^§ 1609. Termination of defense intelligence employees 
"(a) TERMINATION AUTHORITY.—Notwithstanding any other 
provision of law, the Secretary of Defense may terminate the 
employment of any employee in a defense intelligence position 
if the Secretary— 
"(1) considers that action to be in the interests of the 
United States; and 
"(2) determines that the procedures prescribed in other 
provisions of law that authorize the termination of the employ-
ment of such employee cannot be invoked in a manner consist-
ent with the national security. 
"(b) FINALITY.—^A decision by the Secretary of Defense to termi-
nate the employment of an employee under this section is final 
and may not be appealed or reviewed outside the Department 
of Defense. 
"(c) NOTIFICATION TO CONGRESSIONAL COMMITTEES.—^Whenever 
the Secretary of Defense terminates the emplojonent of an employee 
under the authority of this section, the Secretary shall promptly 
notify the congressional oversight committees of such termination. 
"(d) PRESERVATION OF RIGHT TO SEEK OTHER EMPLOYMENT.— 
Any termination of emplo3anent under this section does not affect 
the right of the employee involved to seek or accept emplo)anent 
with any other department or agency of the United States if that 
employee is declared eligible for such employment by the Director 
of the Office of Personnel Management. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2749 
"(e) LIMITATION ON DELEGATION.—^The authority of the Sec-
retary of Defense under this section may be delegated only to 
the Deputy Secretary of Defense, the head of an intelligence compo-
nent of the Department of Defense (with respect to employees 
of that component), or the Secretary of a military department 
(with respect to employees of that department). An action to termi-
nate emplojonent of such an employee by any such official may 
be appealed to the Secretary of Defense. 
*
*
§ 1610. Reductions and other adjustments in force 
Regulations. 
"(a) IN GENERAL.—^The Secretary of Defense shall prescribe 
regulations for the separation of employees in defense intelligence 
positions, including members of the Defense Intelligence Senior 
Executive Service and employees in Intelligence Senior Level posi-
tions, during a reduction in force or other adjustment in force. 
The regulations shall apply to such a reduction in force or other 
adjustment in force notwithstanding sections 3501(b) and 3502 of 
title 5. 
"(b) MATTERS TO B E GIVEN EFFECT.—^The regulations shall 
give effect to the following: 
"(1) Tenure of emplojmient. 
"(2) Military preference, subject to sections 3501(a)(3) and 
3502(b) of title 5. 
"(3) The veteran's preference under section 3502(b) of 
title 5. 
"(4) Performance. 
"(5) Length of service computed in accordance with the 
second sentence of section 3502(a) of title 5. 
"(c) REGULATIONS RELATING TO DEFENSE INTELLIGENCE S E S . — 
The regulations relating to removal from the Defense Intelligence 
Senior Executive Service in a reduction in force or other adjustment 
in force shall be consistent with section 3595(a) of title 5. 
"(d) RIGHT OF APPEAL.—(1) The regulations shall provide a 
right of appeal regarding a personnel action under the regulations. 
The appeal shall be determined within the Department of Defense. 
An appeal determined at the highest level provided in the regula-
tions shall be final and not subject to review outside the Department 
of Defense. A personnel action covered by the regulations is not 
subject to any other provision of law that provides appellate rights 
or procedures. 
"(2) Notwithstanding paragraph (1), a preference 
eligible 
referred to in section 7511(a)(1)(B) of title 5 may elect to have 
an appeal of a personnel action taken against the preference eligible 
under the regulation determined by the Merit Systems Protection 
Board instead of having the appeal determined within the Depart-
ment of Defense. Section 7701 of title 5 shall apply to any such 
appeal to the Merit Systems Protection Board. 
"(e) CONSULTATION WITH OPM.—Regulations under this section 
shall be prescribed in consultation with the Director of the Office 
of Personnel Management.". 
(c) TRANSFER OF SECTION 1599.—Subtitle A of title 10, United 
States Code, is amended by transferring section 1599 to chapter 
83 of such title, inserting such section after section 1610 (as added 
by subsection (b)), redesignating such section as section 1611, and 
in subsection (f) striking out "means" and all that follows and 
inserting in lieu thereof "includes the National Reconnaissance 
Office and any intelligence component of a military department.". 
110 STAT. 2750 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(d) ADDITIONAL PROVISIONS.—Such chapter is further amended 
by inserting after section 1611 (as so transferred and redesignated) 
the following new sections: 
"§ 1612. Merit system principles and civil service protections: 
applicability 
"(a) APPLICABILITY OF MERIT SYSTEM PRINCIPLES.—Section 2301 
of title 5 shall apply to the exercise of authority under this sub-
chapter (other than sections 1605 and 1611). 
"(b) CIVIL SERVICE PROTECTIONS.—(1) If, in the case of a posi-
tion established under authority other than section 1601(a)(1) of 
this title that is reestablished as an excepted service position under 
that section, the provisions of law referred to in paragraph (2) 
applied to the person serving in that position immediately before 
the position is so reestablished and such provisions of law would 
not 
otherwise 
apply to the person 
while 
serving in the 
position as so reestablished, then such provisions of law shall, 
subject to paragraph (3), continue to apply to the person with 
respect to service in that position for as long as the person continues 
to serve in the position without a break in service. 
"(2) The provisions of law referred to in paragraph (1) are 
the following provisions of title 5: 
"(A) Section 
2302, relating to prohibited 
personnel 
practices. 
"(B) Chapter 75, relating to adverse actions. 
"(3)(A) Notwithstanding any provision of chapter 75 of title 
5, an appeal of an adverse action by an individual employee covered 
by paragraph (1) shall be determined within the Department of 
Defense if the employee so elects. 
Procedures. 
"(B) The Secretary of Defense shall prescribe the procedures 
for initiating and determining appeals of adverse actions pursuant 
to elections made under subparagraph (A). 
**§ 1613. Miscellaneous provisions 
"(a) COLLECTIVE BARGAINING AGREEMENTS.—Nothing in sec-
tions 1601 through 1604 and 1606 through 1610 may be construed 
to impair the continued effectiveness of a collective bargaining 
agreement with respect to an agency or office that is a successor 
to an agency or office covered by the agreement before the 
succession. 
"(b) NOTICE TO CONGRESS OF REGULATIONS.—^The Secretary 
of Defense shall notify Congress of any regulations prescribed to 
carry out this subchapter (other than sections 1605 and 1611). 
Such notice shall be provided by submitting a copy of the regulations 
to the congressional oversight committees not less than 60 days 
before such regulations take effect. 
"§ 1614. Definitions 
"In this subchapter: 
"(1) The term 'defense intelligence position' means a civilian 
position as an intelligence officer or intelligence employee of 
an intelligence component of the Department of Defense or 
of a military department. 
"(2) The term 'intelligence component of the Department 
of Defense' means any of the following: 
"(A) The National Security Agency. 
"(B) The Defense Intelligence Agency. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2751 
"(C) The National Imagery and Mapping Agency. 
"(D) Any other component of the Department of 
Defense that performs intelligence functions and is des-
ignated by the Secretary of Defense as an intelligence 
component of the Department of Defense. 
"(E) Any successor to a component specified in, or 
designated pursuant to, this paragraph. 
"(3) The term 'congressional oversight committees' means— 
"(A) the Committee on Armed Services and the Select 
Committee on Intelligence of the Senate; and 
"(B) the Committee on National Security and the 
Permanent Select Committee on Intelligence of the House 
of Representatives. 
"(4) The term 'excepted service' has the meaning given 
such term in section 2103 of title 5. 
"(5) The term 'preference eligible' has the meaning given 
such term in section 2108(3) of title 5. 
"(6) The term 'Senior Executive Service position' has the 
meaning given such term in section 3132(a)(2) of title 5. 
"(7) The term 'collective bargaining agreement' has the 
meaning given such term in section 7103(8) of title 5.". 
(e) DESIGNATION OF NEW SUBCHAPTER II.—Chapter 83 of such 
title is further amended by inserting after section 1614 (as added 
by subsection (d)) the following: 
"SUBCHAPTER II—DEFENSE INTELLIGENCE AGENCY 
PERSONNEL 
"Sec. 
"1621. Defense Intelligence Agency merit pay system. 
"1622. Uniform allowance: civilian employees. 
"1623. Financial assistance to certain employees in acquisition of critical skills.". 
SEC. 1633. REPEAL OF SUPERSEDED SECTIONS AND CLERICAL AND 
CONFORMING AMENDMENTS. 
(a) 
REPEAL OF SEPARATE MILITARY DEPARTMENT AUTHORI-
TIES.—Section 1590 of title 10, United States Code, is repealed. 
(b) REPEAL OF SEPARATE NATIONAL SECURITY AGENCY AUTHORI-
TIES.—The following provisions of law are repealed: 
(i) Sections 2 and 4 of the National Security Agency Act 
of 1959 (50 U.S.C. 402 note). 
(2) Section 303 of the Internal Security Act of 1950 (50 
U.S.C. 833). 
(c) CLERICAL AMENDMENTS.—Title 10, United States Code, is 
amended as follows: 
(1) The heading for section 1605 is amended to read as 
follows: 
"§ 1605. Benefits for certain employees assigned outside the 
United States". 
(2) The table of sections at the beginning of chapter 81 
is amended by striking out the items relating to sections 1590 
and 1599. 
(3) The tables of chapters at the beginning of subtitle 
A, and at the beginning of part II of subtitle A, are amended 
by striking out the item relating to chapter 83 and inserting 
in lieu thereof the following: 
"83. Civilian Defense Intelligence Employees 
1601". 
110 STAT. 2752 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(d) CONFORMING AMENDMENT.—Section 1621 of such title, as 
transferred and redesignated by section 1632(a)(1), is amended 
by striking out "and Central Imagery Office". 
(e) CROSS REFERENCE AMENDMENTS.—Chapter 81 of title 10, 
United States Code, is amended as follows: 
(1) Section 1593(a)(3) is amended by striking out "section 
1606" and inserting in lieu thereof "section 1622". 
(2) Section 1596(c) is amended by striking out "section 
1604(b)" and inserting in lieu thereof "section 1602". 
SEC. 1634. OTHER PERSONNEL MANAGEMENT AUTHORITIES. 
(a) APPLICABILITY OF FEDERAL LABOR-MANAGEMENT RELATIONS 
SYSTEM.—Section 7103(a)(3) of title 5, United States Code, is 
amended— 
(1) by inserting "or" at the end of subparagraph (F); 
(2) by striking out "; or" at the end of subparagraph (G) 
and inserting in lieu thereof a period; and 
(3) by striking out subparagraph (H). 
(b) APPLICABILITY OF AUTHORITY AND PROCEDURES FOR IMPOS-
ING CERTAIN ADVERSE ACTIONS.—Section 7511(b)(8) of such title 
is amended by striking out "the National Security Agency" and 
all that follows through "title 10" and inserting in lieu thereof 
"an intelligence component of the Department of Defense (as defined 
in section 1614 of title 10), or an intelligence activity of a military 
department covered under subchapter I of chapter 83 of title 10". 
10 u s e 1593 
SEC. 1635. EFFECTIVE DATE. 
This subtitle and the amendments made by this subtitle shall 
take effect on October 1, 1996. 
Federal 
Employee Travel 
Reform Act of 
1996. 
TITLE XVII—FEDERAL EMPLOYEE 
TRAVEL REFORM 
Sec. 1701. Short title. 
Subtitle A—Relocation Benefits 
Sec. 1711. Allowance for seeking permanent residence quarters. 
Sec. 1712. Temporary quarters subsistence expenses allowance. 
Sec. 1713. Modification of residence transaction expenses allowance. 
Sec. 1714. Authority to pay for property management services. 
Sec. 1715. Authority to transport a privately owned motor vehicle within the 
continental United States. 
Sec. 1716. Authority to pay limited relocation allowances to an employee who is 
performing an extended assignment. 
Sec. 1717. Authority to pay a home marketing incentive. 
Sec. 1718. Revision and reenactment of additional provisions relating to relocation 
expenses. 
Subtitle B—Miscellaneous Provisions 
Sec. 1721. Repeal of the long-distance telephone call certification requirement. 
Sec. 1722. Transfer of authority to prescribe regulations. 
Sec. 1723. Conforming and clerical amendments. 
Sec. 1724. Assessment of cost savings. 
Sec. 1725. Effective date and issuance of regulations. 
5 u s e 5701 note. 
SEC. 1701. SHORT TITLE. 
This title may be cited as the "Federal Employee Travel Reform 
Act of 1996". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2753 
Subtitle A—Relocation Benefits 
SEC. 1711. ALLOWANCE 
FOR 
SEEKING 
PERMANENT 
RESIDENCE 
QUARTERS. 
Section 5724a of title 5, United States Code, is amended to 
read as follows: 
*
*
§ 5724a. Relocation expenses of employees transferred or 
reemployed 
"(a) An agency shall pay to or on behalf of an employee who 
transfers in the interest of the Government, a per diem allowance 
or the actual subsistence expenses, or a combination thereof, of 
the immediate family of the employee for en route travel of the 
immediate family between the employee's old and new official 
stations. 
"(b)(1) An agency may pay to or on behalf of an employee 
who transfers in the interest of the Government between official 
stations located within the United States— 
"(A) the expenses of transportation of the employee and 
the employee's spouse for travel to seek permanent residence 
quarters at a new official station; and 
"(B) either— 
"(i) a per diem allowance or the actual subsistence 
expenses (or a combination of both); or 
"(ii) an amount for subsistence expenses. 
"(2) Expenses may be allowed under paragraph (1) only for 
one round trip in connection with each change of station of the 
employee.". 
SEC. 1712. TEMPORARY 
QUARTERS 
SUBSISTENCE 
EXPENSES 
ALLOWANCE. 
Section 5724a of title 5, United States Code, as amended by 
section 1712, is further amended by adding at the end the following 
new subsection: 
"(c)(1) An agency may pay to or on behalf of an employee 
who transfers in the interest of the Government— 
"(A) actual subsistence expenses of the employee and the 
employee's immediate family for a period of up to 60 days 
while the employee or family is occupying temporary quarters 
when the new official station is located within the United 
States; or 
"(B) an amount for subsistence expenses instead of the 
actual subsistence expenses authorized in subparagraph (A) 
of this paragraph. 
"(2) The period authorized in paragraph (1) of this subsection 
for payment of expenses for residence in temporary quarters may 
be extended up to an additional 60 days if the head of the agency 
concerned or the designee of such head of the agency determines 
that there are compelling reasons for the continued occupancy of 
temporary quarters. 
"(3) The regulations implementing paragraph (1)(A) shall Regulations. 
prescribe daily rates and amounts for subsistence expenses per 
individual.". 
110 STAT. 2754 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 1713. MODIFICATION OF RESIDENCE TRANSACTION EXPENSES 
ALLOWANCE. 
(a) EXPENSES OF SALE.—Section 5724a of title 5, United States 
Code, as amended by section 1712, is further amended by adding 
at the end the following new subsection: 
"(d)(1) An agency shall pay to or on behalf of an employee 
who transfers in the interest of the Government, expenses of the 
sale of the residence (or the settlement of an unexpired lease) 
of the employee at the old official station and purchase of a residence 
at the new official station that are required to be paid by the 
employee, when the old and new official stations are located within 
the United States. 
"(2) An agency shall pay to or on behalf of an employee who 
transfers in the interest of the Government from a post of duty 
located outside the United States to an official station within the 
United States (other than the official station within the United 
States from which the employee was transferred when assigned 
to the foreign tour of duty)— 
"(A) expenses required to be paid by the employee for 
the sale of the residence (or the settlement of an unexpired 
lease) of the employee at the old official station from which 
the employee was transferred when the employee was assigned 
to the post of duty located outside the United States; and 
"(B) expenses required to be paid by the employee for 
the purchase of a residence at the new official station within 
the United States. 
"(3) Reimbursement of expenses under paragraph (2) of this 
subsection shall not be allowed for any sale (or settlement of an 
unexpired lease) or purchase transaction that occurs prior to official 
notification that the employee's return to the United States would 
be to an official station other than the official station from which 
the employee was transferred when assigned to the post of duty 
outside the United States. 
"(4) Reimbursement for brokerage fees on the sale of the resi-
dence and other expenses under this subsection may not exceed 
those customarily charged in the locality where the residence is 
located. 
"(5) Reimbursement may not be made under this subsection 
for losses incurred by the employee on the sale of the residence. 
Applicability. 
"(6) This subsection applies regardless of whether title to the 
residence or the unexpired lease is— 
"(A) in the name of the employee alone; 
"(B) in the joint names of the employee and a member 
of the employee's immediate family; or 
"(C) in the name of a member of the employee's immediate 
family alone. 
"(7)(A) In connection with the sale of the residence at the 
old official station, reimbursement under this subsection shall not 
exceed 10 percent of the sale price. 
"(B) In connection with the purchase of a residence at the 
new official station, reimbursement under this subsection shall 
not exceed 5 percent of the purchase price.". 
(b) RELOCATION SERVICES.—Section 5724c of title 5, United 
State Code, is amended to read as follows: 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2755 
^§ 5724c. Relocation services 
"Under regulations prescribed under section 5738 of this title, 
each agency may enter into contracts to provide relocation services 
to agencies and employees for the purpose of carrying out this 
subchapter. An agency may pay a fee for such services. Such serv-
ices include arranging for the purchase of a transferred employee's 
residence.". 
SEC. 1714. AUTHORITY 
TO PAY 
FOR 
PROPERTY 
MANAGEMENT 
SERVICES. 
Section 5724a of title 5, United States Code, as amended by 
section 1713, is further amended— 
(1) in subsection (d), by adding at the end the following: 
"(8) An agency may pay to or on behalf of an employee who 
transfers in the interest of the Government expenses of property 
management services, instead of expenses under paragraph (2) 
or (3) of this subsection for sale of the employee's residence, when 
the agency determines that such transfer is advantageous and 
cost-effective for the Grovemment."; and 
(2) by adding at the end the following new subsection: 
"(e) An agency may pay to or on behalf of an employee who 
transfers in the interest oi the Government, the expenses of property 
management services when the employee transfers to a post of 
duty outside the United States. Such payment shall terminate 
upon return of the employee to an official station within the United 
States.". 
SEC. 1716. AUTHORITY TO TRANSPORT A PRIVATELY OWNED MOTOR 
VEHICLE \nTHIN THE CONTINENTAL UNITED STATES. 
(a) IN GENERAL.—Section 5727 of title 5, United States Code, 
is amended— 
(1) by redesignating subsections (c) through (e) as sub-
sections (d) through (f), respectively; 
(2) by inserting after subsection (b) the following new 
subsection: 
"(c) Under regulations prescribed under section 5738 of this 
title, the privately owned motor vehicle or vehicles of an employee, 
including a new appointee or a student trainee for whom travel 
and transportation expenses are authorized under section 5723 
of this title, may be transported at Government expense to a new 
official station of the employee when the agency determines that 
such transport is advantageous and cost-effective to the Govern-
ment."; and 
(3) in subsection (e) (as so redesignated), by inserting "or 
(c)" after "subsection (b)". 
(b) AVAILABILITY OF APPROPRIATIONS.—(1) Section 5722(a) of 
title 5, United States Code, is amended— 
(A) by striking out "and" at the end of paragraph (1); 
(B) by striking out the period at the end of paragraph 
(2) and inserting in lieu thereof "; and"; and 
(C) by adding at the end the following: 
"(3) the expenses of transporting a privately owned motor 
vehicle as authorized under section 5727(c) of this title.". 
(2) Section 5723(a) of title 5, United States Code, is amended— 
(A) by striking out "and" at the end of paragraph (1); 
(B) by inserting "and" after the semicolon at the end of 
paragraph (2); and 
29-194 O - 96 - 33 : QL 3 Part 3 
110 STAT. 2756 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(C) by adding at the end the following: 
"(3) the expenses of transporting a privately owned motor 
vehicle as authorized under section 5727(c) of this title;". 
SEC. 1716. AUTHORITY TO PAY LIMITED RELOCATION ALLOWANCES 
TO AN EMPLOYEE WHO IS PERFORMING AN EXTENDED 
ASSIGNMENT. 
Subchapter II of chapter 57 of title 5, United States Code, 
as amended by section 1605, is further gimended by adding at 
the end the following new section: 
"§ 5737. Relocation expenses of an employee who is perform-
ing an extended assignment 
"(a) Under regulations prescribed under section 5738 of this 
title, an agency may pay to or on behalf of an employee assigned 
from the employee's official station to a duty station for a period 
of not less than six months and not greater than 30 months, 
the following expenses in lieu of payment of expenses authorized 
under subchapter I of this chapter: 
"(1) Travel expenses to and from the assignment location 
in accordance with section 5724 of this title. 
"(2) Transportation expenses of the immediate family and 
household goods and personal effects to and from the assign-
ment location in accordance with section 5724 of this title. 
"(3) A per diem allowance for en route travel of the em-
ployee's immediate family to and from the assignment location 
in accordance with section 5724a(a) of this title. 
"(4) Travel and transportation expenses of the employee 
and spouse to seek new residence quarters at the assignment 
location in accordance with section 5724a(b) of this title. 
"(5) Subsistence expenses of the employee and the em-
ployee's immediate family while occupying temporary quEirters 
upon commencement 8ind termination of the assignment in 
accordance with section 5724a(c) of this title. 
"(6) An amount, in accordance with section 5724a(f), to 
be used by the employee for miscellaneous expenses of this 
title. 
"(7) The expenses of transporting a privately owned motor 
vehicle or vehicles to the assignment location in accordance 
with section 5727 of this title. 
"(8) An allowance as authorized under section 5724b of 
this title for Federal, State, and local income taxes incurred 
on reimbursement of expenses paid under this section or on 
services provided in kind under this section. 
"(9) Expenses of nontemporary storage of household goods 
and personal effects as defined in section 5726(a) of this title, 
subject to the limitation that the weight of the household goods 
and personal effects stored, together with the weight of property 
transported under section 5724(a) of this title, may not exceed 
the total maximum weight which could be transported in 
accordance with section 5724(a) of this title. 
"(10) Expenses of property management services. 
"(b) An agency shall not make payment under this section 
to or on behalf of the employee for expenses incurred after termi-
nation of the temporary assignment.". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2757 
SEC. 1717. AUTHORITY TO PAY A HOME MARKETING INCENTIVE. 
Subchapter IV of chapter 57 of title 5, United States Code, 
is amended by adding at the end the following new section: 
^§ 5756. Home marketing incentive payment 
Regulations. 
"(a) Under regulations prescribed under subsection (b), an 
agency may pay to an employee who transfers in the interest 
of the Grovemment an amount to encourage the employee to aggres-
sively market the employee's residence at the official station from 
which transferred when— 
"(1) the residence is entered into a relocation services pro-
gram established under a contract in accordance with section 
5724c of this title to arrsmge for the purchase of the residence; 
"(2) the employee finds a buyer who completes the purchase 
of the residence through the program; and 
"(3) the sale of the residence results in a reduced cost 
to the Government. 
"(b)(1) The Administrator of General Services shall prescribe 
regulations to carry out this section. 
"(2) The regulations shall include a limitation on the maximum 
amount payable with respect to an employee's residence. The 
Administrator shall establish the limitation in consultation with 
the Director of the Office of Management and Budget. For fiscal 
years 1997 and 1998, the maximum amount shall be the amount 
equal to five percent of the sale price of the residence.". 
SEC. 1718. REVISION AND REENACTMENT OF ADDITIONAL PROVI-
SIONS RELATING TO RELOCATION EXPENSES. 
Section 5724a of title 5, United States Code, as amended by 
section 1714, is further amended by adding at the end the following 
new subsections: 
"(f)(1) Subject to paragraph (2), an employee who is reimbursed 
under subsections (a) through (e) of this section or section 5724(a) 
of this title is entitled to an amount for miscellaneous expenses— 
"(A) not to exceed two weeks' basic pay, if such employee 
has an immediate family; or 
"(B) not to exceed one week's basic pay, if such employee 
does not have an immediate family. 
"(2) Amounts paid under paragraph (1) may not exceed amounts 
determined at the maximum rate payable for a position at GS-
13 of the General Schedule. 
"(g) A former employee separated by reason of reduction in 
force or transfer of function who within one year after the separation 
is reemployed by a nontemporary appointment at a different geo-
graphical location from that where the separation occurred, may 
be allowed and paid the expenses authorized by sections 5724, 
5725, 5726(b), and 5727 of this title, and may receive the benefits 
authorized by subsections (a) through (f) of this section, in the 
same manner as though the employee had been transferred in 
the interest of the Government without a break in service to the 
location of reemployment from the location where separated. 
"(h) Payments for subsistence expenses, including amounts in 
lieu of per diem or actual subsistence expenses or a combination 
thereof, authorized under this section may not exceed the maximum 
payment allowed under regulations which implement section 5702 
of this title. 
110 STAT. 2758 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(i) Subsections (a), (b), and (c) shall be implemented under 
regulations issued under section 5738 of this title. 
"(j) For purposes of subsections (c), (d), and (e), the term 'United 
States' includes the District of Columbia, the Commonwealth of 
Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
the territories and possessions of the United States, and the areas 
and installations in the Republic of Panama that are made available 
to the United States pursuant to the Panama Canal Treaty of 
1977 and related agreements (as described in section 3(a) of the 
Panama Canal Act of 1979 (22 U.S.C. 3602(a))).". 
Subtitle B—^Miscellaneous Provisions 
SEC. 1721. REPEAL OF THE LONG-DISTANCE 
TELEPHONE 
CALL 
CERTIFICATION REQUIREMENT. 
Section 1348 of title 31, United States Code, is amended— 
(1) by striking the last sentence of subsection (a)(2); 
(2) by striking subsection (b); and 
(3) by redesignating subsections (c) and (d) as subsections 
(b) and (c), respectively. 
SEC. 1722. TRANSFER OF AUTHORITY TO PRESCRIBE REGULATIONS. 
Subchapter II of chapter 57 of title 5, United States Code, 
as amended by section 1716, is further amended by adding at 
the end the following new section: 
*'§5738. Regulations 
"(a)(1) Except as specifically provided in this subchapter, the 
Administrator of General Services shall prescribe regulations nec-
essary for the administration of this subchapter. 
"(2) The Administrator of General Services shall include in 
the regulations authority for the head of an agency or his designee 
to waive any limitation of this subchapter or in any implementing 
regulation for any employee relocating to or from a remote or 
isolated location who would suffer hardship if the limitation were 
not waived. A waiver of a limitation under authority provided 
in the regulations pursuant to this paragraph shall be effective 
notwithstanding any other provision of this subchapter. 
"(b) In prescribing regulations for the implementation of section 
5724b of this title, the Administrator of General Services shall 
consult with the Secretary of the Treasury. 
"(c) The Secretary of Defense shall prescribe regulations nec-
essary for the implementation of section 5735 of this title.". 
SEC. 1723. CONFORMING AND CLERICAL AMENDMENTS. 
(a) CROSS REFERENCES.—(1) Title 5, United States Code, is 
amended as follows: 
(A) Section 3375 is amended— 
(i) in subsection (a)(3), by striking out "section 
5724a(a)( 1)" and inserting in lieu thereof "section 5724a(a)"; 
(ii) in subsection (a)(4), by striking out "section 
5724a(a)(3)" and inserting in lieu thereof "section 5724a(c)"; 
and 
(iii) in subsection (a)(5), by striking out "section 
5724a(b)" and inserting in lieu thereof "section 5724a(g)"; 
and 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2759 
(B) Section 5724(e) is amended by striking out "section 
5724a(a), (b)" and inserting in lieu thereof "section 5724a (a) 
through (f)". 
(2) Section 707 of title 38, United States Code, is amended— 
(A) in subsection (a)(6), by striking out "Section 5724a(a)(3)" 
and inserting in lieu thereof "Section 5724a(c)"; and 
(B) in subsection (a)(7), by striking out "Section 5724a(a)(4)" 
and inserting in lieu thereof "Section 5724a(d)". 
(3) The Public Health Service Act is amended as follows: 
(A) Section 501(g)(2)(A) (42 U.S.C. 290aa(gX2)(A)) is 
amended by striking out "5724a(a)(l), 5724a(a)(3)" and insert-
ing in lieu thereof "5724a(a), 5724a(c)". 
(B) Section 925(f)(2)(A) (42 U.S.C. 299c-4(f)(2)(A)) is 
amended by striking out "5724a(a)(l), 5724a(a)(3)" and insert-
ing in lieu thereof "5724a(a), 5724a(c)". 
(b) REGULATIONS.—^Title 5, United States Code, is amended 
as follows: 
(1) Sections 5722, 5723, 5724, (in subsections (a), (b), and 
(c)), 5724b, 5726 (in subsections (b) and (c)), 5727(b), 5728 
(in subsections (a), (b), and (c)(1)), and 5729 (in subsections 
(a) and (b)) of title 5, United States Code, are amended by 
striking out "Under such regulations as the President may 
prescribe", and inserting in lieu thereof "Under regulations 
prescribed under section 5738 of this title". 
(2) Section 5724 of title 5, United States Code, is 
amended— 
(A) by striking out "under regulations prescribed by 
the President" each place it appears in subsections (c) 
and (e) and inserting in lieu thereof "under regulations 
prescribed under section 5738 of this title"; and 
(B) in subsection (f), by striking out "under the regula-
tions of the President" and inserting in lieu thereof "under 
regulations prescribed under section 5738 of this title". 
(3) Section 5726(a) of title 5, United States Code, is 
amended by striking out "as the President may by regulation 
authorize" and inserting in lieu thereof "as authorized under 
regulations prescribed under section 5738 of this title". 
(4) Section 5731(a) of title 5, United States Code, is 
amended by striking out "in accordance with regulations pre-
scribed by the President" £ind inserting in lieu thereof "in 
accordance with regulations prescribed under section 5738 of 
this title". 
(c) CLERICAL AMENDMENTS.—^The table of sections at the begin-
ning of chapter 57 of title 5, United States Code, as amended 
by section 1605, is further amended— 
(1) by inserting after the item relating to section 5736 
the following: 
"5737, Relocation expenses of an employee who is performing an extended 
assignment. 
"5738. Regulations."; 
and 
(2) by inserting at the end the following: 
"5756. Home marketing incentive payment.". 
SEC. 1724. ASSESSMENT OF COST SAVINGS. 
5 USC 5722 note. 
No later than one year after the effective date set forth in 
section 1725(a), the Comptroller General shall submit to the 
110 STAT. 2760 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Committee on Governmental Affairs of the Senate and the Commit-
tee on Government Reform and Oversight of the House of Rep-
resentatives an assessment of the costs of Federal travel administra-
tion that are saved as a result of the amendments made by this 
title and the regulations prescribed to carry out the amendments. 
5 u s e 5722 note. 
SEC. 1725. EFFECTIVE DATE AND ISSUANCE OF REGULATIONS. 
(a) EFFECTIVE DATE.—^The amendments made by this title shall 
take effect 180 days after the date of the enactment of this Act. 
(b) REGULATIONS.—^The Administrator of General Services shall, 
not later than the effective date set forth under subsection (a), 
issue final regulations implementing the amendments made by 
this title. 
Delaware 
TITLE XVIII—FEDERAL CHARTER FOR 
THE FLEET RESERVE ASSOCIATION 
Sec. 1801. Recognition and grant of Federal charter. 
Sec. 1802. Powers. 
Sec. 1803. Purposes. 
Sec. 1804. Service of process. 
Sec. 1805. Membership. 
Sec. 1806. Board of directors. 
Sec. 1807. Officers. 
Sec. 1808. Restrictions. 
Sec. 1809. Liability. 
Sec. 1810. Maintenance and inspection of books and records. 
Sec. 1811. Audit of financial transactions. 
Sec. 1812. Annual report. 
Sec. 1813. Reservation of right to alter, amend, or repeal charter. 
Sec. 1814. Tax-exempt status required as condition of charter. 
Sec. 1815. Termination. 
Sec. 1816. Definition of State. 
36 u s e 5601. 
SEC. 1801. RECOGNITION AND GRANT OF FEDERAL CHARTER 
The Fleet Reserve Association, a nonprofit corporation orga-
nized under the laws of the State of Delaware, is recognized as 
such and granted a Federal charter. 
36 u s e 5602. 
SEC. 1802. POWERS. 
The Fleet Reserve Association (in this title referred to as the 
"association") shall have only those powers granted to it through 
its bylaws and articles of incorporation filed in the State of Delaware 
and subject to the laws of that State. 
36 u s e 5603. 
SEC. 1803. PURPOSES. 
The purposes of the association are those provided in its bylaws 
and articles of incorporation and shall include the following: 
(1) Upholding and defending the Constitution of the United 
States. 
(2) Aiding and maintaining an adequate naved defense 
for the United States. 
(3) Assisting the recruitment of the best personnel available 
for the United States Navy, United States Marine Corps, and 
United States Coast Guard. 
(4) Providing for the welfare of the personnel who serve 
in the United States Navy, United States Marine Corps, and 
United States Coast Guard. 
(5) Continuing to serve loyally the United States Navy, 
United States Marine Corps, and United States Coast Guard. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2761 
(6) Preserving the spirit of shipmanship by providing assist-
ance to shipmates and their famiUes. 
(7) Instilhng love of the United States and the flag and 
promoting soundness of mind and body in the youth of the 
United States. 
SEC. 1804. SERVICE OF PROCESS. 
36USC5604. 
With respect to service of process, the association shall comply 
with the laws of the State of Delaware and those States in which 
it carries on its activities in furtherance of its corporate purposes. 
SEC. 1805. MEMBERSmP. 
36USC5605. 
Except as provided in section 1808(g), eligibility for membership 
in the association and the rights and privileges of members shall 
be as provided in the bylaws and articles of incorporation of the 
association. 
SEC. 1806. BOARD OF DIRECTORS. 
36USC5606. 
Except as provided in section 1808(g), the composition of the 
board of directors of the association and the responsibilities of 
the board shall be as provided in the bylaws and articles of incorpo-
ration of the association and in conformity with the laws of the 
State of Delaware. 
SEC. 1807. OFFICERS. 
36USC5607. 
Except as provided in section 1808(g), the positions of officers 
of the association and the election of members to such positions 
shall be as provided in the bylaws and articles of incorporation 
of the association and in conformity with the laws of the State 
of Delaware. 
SEC. 1808. RESTRICTIONS. 
36USC5608. 
(a) INCOME AND COMPENSATION.—No part of the income or 
assets of the association may inure to the benefit of any member, 
officer, or director of the association or be distributed to any such 
individual during the life of this charter. Nothing in this subsection 
may be construed to prevent the pa5anent of reasonable compensa-
tion to the officers and employees of the association or reimburse-
ment for actual and necessary expenses in amounts approved by 
the board of directors. 
(b) LOANS.—^The association may not make any loan to any 
member, officer, director, or employee of the association. 
(c) ISSUANCE OF STOCK AND PAYMENT OF DIVIDENDS.—^The 
association may not issue any shares of stock or declare or pay 
any dividends. 
(d) DISCLAIMER OF CONGRESSIONAL OR FEDERAL APPROVAL.— 
The association may not claim the approval of the Congress or 
the authorization of the Federal Government for any of its activities 
by virtue of this title. 
(e) CORPORATE STATUS.—^The association shall maintain its sta-
tus as a corporation organized and incorporated under the laws 
of the State of Delaware. 
(D CORPORATE FUNCTION.—The association shall function as 
an educational, patriotic, civic, historical, and research organization 
under the laws of the State of Delaware. 
(g) NONDISCRIMINATION.—In establishing the conditions of 
membership in the association and in determining the requirements 
for serving on the board of directors or as an officer of the associa-
110 STAT. 2762 
PUBLIC LAW 104-201—SEPT. 23, 1996 
tion, the association may not discriminate on the basis of race, 
color, religion, sex, handicap, age, or national origin. 
36 use 5609. 
SEC. 1809. LIABILITY. 
The association shall be liable for the acts of its officers, direc-
tors, employees, and agents whenever such individuals act within 
the scope of their authority. 
36 use 5610. 
SEC. 1810. MAINTENANCE AND INSPECTION OF BOOKS AND RECORDS. 
(a) BOOKS AND RECORDS O F ACCOUNT.—^The association shall 
keep correct and complete books and records of account and minutes 
of any proceeding of the association involving any of its members, 
the board of directors, or any committee having authority under 
the board of directors. 
(b) NAMES AND ADDRESSES O F MEMBERS.—The association shall 
keep at its principal office a record of the names and addresses 
of all members having the right to vote in any proceeding of the 
association. 
(c) RIGHT TO INSPECT BOOKS AND RECORDS.—^All books 
and 
records of the association may be inspected by any member having 
the right to vote in any proceeding of the association, or by any 
agent or attorney of such member, for any proper purpose at any 
reasonable time. 
(d) APPLICATION O F STATE LAW.—This section may not be con-
strued to contravene any applicable State law. 
SEC. 1811. AUDIT OF FINANCIAL TRANSACTIONS. 
The first section of the Act entitled "An Act to provide for 
audit of accounts of private corporations established under Federal 
law", approved August 30, 1964 (36 U.S.C. 1101), is amended by 
adding at the end the following: 
"(77) Fleet Reserve Association.". 
36 use 5611. 
SEC. 1812. ANNUAL REPORT. 
The association shall annually submit to Congress a report 
concerning the activities of the association during the preceding 
fiscal 
year. The annual report shall be submitted on the same 
date as the report of the audit required by reason of the amendment 
made in section 1811. The annual report shall not be printed 
as a public document. 
36 use 5612. 
SEC. 1813. RESERVATION OF RIGHT TO ALTER, AMEND, OR REPEAL 
CHARTER 
The right to alter, amend, or repeal this title is expressly 
reserved to Congress. 
36 use 5613. 
SEC. 1814. TAX-EXEMPT 
STATUS 
REQUIRED 
AS CONDITION OF 
CHARTER 
If the association fails to maintain its status as an organization 
exempt from taxation as provided in the Internal Revenue Code 
of 1986 the charter granted in this title shall terminate. 
36 use 5614. 
SEC. 1815. TERMINATION. 
The charter granted in this title shall expire if the association 
fails to comply with any of the provisions of this title. 
36 use 5615. 
SEC. 1816. DEFINITION OF STATE. 
For purposes of this title, the term "State" includes the 
District of Columbia, the Commonwealth 
of Puerto Rico, the 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2763 
Commonwealth of the Northern Mariana Islands, and the territories 
and possessions of the United States. 
DIVISION B—MILITARY CONSTRUCTION 
AUTHORIZATIONS 
SEC. 2001. SHORT TITLE. 
This division may be cited as the "Military Construction 
Authorization Act for Fiscal Year 1997". 
TITLE XXI—ARMY 
Military 
Construction 
Authorization 
Act for Fiscal 
Year 1997. 
Sec. 2101. Authorized Army construction and land acquisition projects. 
Sec. 2102. Family housing. 
Sec. 2103. Improvements to military family housing units. 
Sec. 2104. Authorization of appropriations, Army. 
Sec. 2105. Land acquisition. National Ground Intelligence Center, Charlottesville, 
Virginia. 
SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISI-
TION PROJECTS. 
(a) INSIDE THE UNITED STATES.—Using amounts appropriated 
pursuant 
to the authorization 
of appropriations in 
section 
2104(aXl), and, in the case of the projects described in paragraphs 
(2) and (3) of section 2104(b), other amounts appropriated pursuant 
to authorizations enacted after this Act for the projects, the Sec-
retary of the Army may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts set forth in the fc^owing table: 
Army: Inside the United States 
State 
Alabama 
Califamia 
Colorado 
District of Columbia 
Georgia 
Hawaii 
Kansas 
Kentucky 
New Jersey 
New Mexico 
New York 
North Carolina 
Texas 
Virginia 
Washington 
Installation or location 
Fort Rucker 
Army project, Naval Weapons 
Station, Concord 
Camp Roberts 
Fort Carson 
Fort McNair 
Fort Benning 
Fort McPherson 
Fort Stewart, Hunter Army Air 
Field. 
Schofield Barracks 
Fort Riley 
Fort Campbell 
Fort Knox 
Picatinny Arsenal 
White Sands Missile Range 
Fort Drum 
Fort Bragg 
Fort Hood 
Fort Sam Houston 
Fort Eustis 
National 
Ground 
Intelligence 
Center, Charlottesville 
Total 
$3,250,000 
$27,000,000 
$5,500,000 
$17,550,000 
$6,900,000 
$53,400,000 
$3,500,000 
$6,000,000 
$16,500,000 
$26,000,000 
$51,100,000 
$45,000,000 
$5,000,000 
$41,000,000 
$11,400,000 
$14,000,000 
$47,300,000 
$3,100,000 
$3,550,000 
$1,000,000 
$54,600,000 
110 STAT. 2764 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Army: Inside the United States—Continued 
State 
CONUS Classified .... 
Installation or location 
Classified Locations 
Total: 
Total 
$4,600,000 
$447,250,000 
(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated 
pursuant 
to the authorization 
of appropriations 
in 
section 
2104(a)(2), the Secretary of the Army may acquire real property 
and carry out military construction projects for the locations outside 
the United States, and in the amounts set forth in the following 
table: 
Army: Outside the United States 
Country 
(Jermany 
Italy 
Korea 
Overseas Classified 
Installation or location 
Lincoln Village, Darmstadt ... 
Spinelli Barracks, Mannheim 
Taylor Barracks, Mannheim 
Camp Ederle 
Camp Casey 
Camp Red Cloud 
Classified Locations 
Total: 
Total 
$7,300,000 
$8,100,000 
$9,300,000 
$3,100,000 
$16,000,000 
$14,000,000 
$64,000,000 
$121,800,000 
SEC. 2102. FAMILY HOUSING. 
(a) CONSTRUCTION AND ACQUISITION.—Using amounts appro-
priated pursuant to the authorization of appropriations in section 
2104(a)(5)(A), the Secretary of the Army may construct or acquire 
family housing units (including land acquisition) at the installa-
tions, for the purposes, and in the amounts set forth in the following 
table: 
Army: Family Housing 
State 
Hawaii 
North Carolina 
Pennsylvania 
Texas 
Installation 
Schofield Barracks ,, , 
Fort Bragg 
Tobyhanna Army 
Depot. 
Fort Bliss 
Fort Hood 
Purpose 
54 Units 
88 Units 
200 Units 
64 Units 
140 Units 
Total: 
Total 
$10,000,000 
$9,800,000 
$890,000 
$11,000,000 
$18,500,000 
$50,190,000 
(b) 
PLANNING 
AND DESIGN.—Using amounts 
appropriated 
pursuant 
to the authorization 
of appropriations 
in 
section 
2104(a)(5)(A), the Secretary of the Army may carry out architectural 
and engineering services and construction design activities with 
respect to the construction or improvement of family housing units 
in an amount not to exceed $2,963,000. 
SEC. 2103. IMPROVEMENTS TO MIUTARY FAMILY HOUSING UNITS. 
Subject to section 2825 of title 10, United States Code, and 
using amounts appropriated pursuant to the authorization of appro-
priations in section 2104(a)(5)(A), the Secretary of the Army may 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2765 
improve existing military family housing units in an amount not 
to exceed $105,350,000. 
SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY. 
(a) IN GENERAL.—^Funds are hereby authorized to be appro-
priated for fiscal years beginning after September 30, 1996, for 
military construction, land acquisition, and military family housing 
functions of the Department of the Army in the total amount 
of $1,942,557,000 as follows: 
(1) For military construction projects inside the United 
States authorized by section 2101(a), $394,250,000. 
(2) For military construction projects outside the United 
States authorized by section 2101(b), $121,800,000. 
(3) For unspecified minor military construction projects 
authorized by section 2805 of title 10, United States Code, 
$5,000,000. 
(4) For architectural and engineering services and construc-
tion design under section 2807 of title 10, United States Code, 
$50,538,000. 
(5) For military family housing functions: 
(A) For construction and acquisition, planning and 
design, and improvement of military family housing £ind 
facilities, $158,503,000. 
(B) For support of military family housing (including 
the functions described in section 2833 of title 10, United 
States Code), $1,212,466,000. 
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.— 
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation author-
ized by law, the total cost of all projects carried out under section 
2101 of this Act may not exceed— 
(1) the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a); 
(2) $31,000,000 (the balance of the amount authorized 
under section 2101(a) for the construction of the National Range 
Control Center at White Sands Missile Range, New Mexico); 
and 
(3) $22,000,000 (the balance of the amount authorized 
under section 2101(a) for the whole barracks complex renewal 
at Fort Knox, Kentucky). 
SEC. 2105. LAND ACQUISITION, NATIONAL GROUND INTELLIGENCE 
CENTER, CHARLOTTESVILLE, VIRGINIA. 
(a) ACQUISITION AUTHORIZED.—Subject to subsection (b), the 
Secretary of the Army may acquire real property for the National 
Ground Intelligence Center, Charlottesville, Virginia. 
(b) REQUIREMENT RELATING TO ACQUISITION.—^The Secretary 
may not acquire real property pursuant to the authorization in 
subsection (a) until the Secretary certifies to the congressiongJ 
defense committees, based on the results of an assessment of prop-
erty currently owned or operated by the Federal Government in 
the vicinity of Charlottesville, Virginia, that the acquisition of the 
property would provide the most cost-effective means of securing 
a location for the National Ground Intelligence Center that satisfies 
the mission requirements of the center. 
(c) FUNDING.—Of the amounts authorized to be appropriated 
by section 2104(a)(1), $1,000,000 shall be available for the acquisi-
110 STAT. 2766 
PUBLIC LAW 104-201—SEPT. 23, 1996 
tion of real property pursuant to the authorization in subsection 
(a). 
TITLE XXII—NAVY 
Sec. 2201. Authorized Navy construction and land acquisition projects. 
Sec. 2202. Family housing. 
Sec. 2203. Improvements to military family housing units. 
Sec. 2204. Authorization of appropriations, Navy. 
Sec. 2205. Beach replenishment, Naval Air Station, North Island, California. 
SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISI-
TION PROJECTS. 
(a) INSIDE THE UNITED STATES.—^Using amounts appropriated 
pursuant 
to 
the 
authorization 
of appropriations 
in 
section 
2204(a)(1), and, in the case of the projects described in paragraphs 
(2) and (3) of section 2204(b), other amounts appropriated pursuant 
to authorizations enacted after this Act for the projects, the Sec-
retary of the Navy may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table: 
Navy: Inside the United States 
State 
Arizona 
Connecticut 
District of Columbia 
Florida 
Georgia 
Hawaii 
Idaho 
Illinois 
Installation or location 
Navy Detachment, Camp Navajo 
Marine Corps Air-Ground Com-
bat Center, Twentjoiine Palms 
Marine Corps Air Station, Camp 
Pendleton 
Marine Corps Base, Camp Pen-
Marine Corps Recruit Detach-
ment, San Diego 
Naval Air Station, North Island 
Naval 
Command 
Control 
& 
Ocean 
Surveillance 
Center, 
San Diego 
Naval Facility, San Clemente Is-
land. 
Naval Station, San Diego 
Naval 
Submarine 
Base, New 
London. 
Naval District, Washington 
Naval Air Station, Key West 
Naval Station, Mayport 
Naval Submarine Base, Kings 
Bay. 
Marine 
Corps, 
Air 
Station, 
Kaneohe Bay. 
Naval Station, Pearl Harbor 
Nav£j Submarine Base, 
Pearl 
Harbor. 
Naval Surface Warfare Center, 
Bayview. 
Naval Hospital, Great Lakes 
Amount 
$3,920,000 
$4,020,000 
$6,240,000 
$51,630,000 
$8,150,000 
$86,502,000 
$1,960,000 
$17,000,000 
$7,050,000 
$13,830,000 
$19,300,000 
$2,250,000 
$2,800,000 
$1,550,000 
$20,080,000 
$19,600,000 
$35,890,000 
$7,150,000 
$15,200,000 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2767 
Navy: Inside the United States—Continued 
State 
Indiana 
Mississippi 
Nevada 
North Carolina 
Pennsylvania 
South Carolina 
Texas 
Virginia 
Washington 
CONUS Various 
Installation or location 
Naval Training Center, 
Great 
Lakes. 
Naval Surface Warfare Center, 
Crane. 
Naval Air Warfare Center, Pa-
tuxent River 
United States Naval Academy .... 
Navy Project, Stennis Space Cen-
ter. 
Naval Air Station, Fallon 
Marine Corps Air Station, Cher-
ry Point. 
Marine Corps Air Station, New 
River. 
Marine 
Corps 
Base, 
Camp 
Lejeune. 
Philadelphia Naval Shipyard 
Marine 
Corps 
Recruit 
Depot, 
Parris Island 
Naval Air Station, Kingsville 
Naval Station, Ingleside 
Armed Forces StaflT College, Nor-
folk 
Marine Corps Combat Develop-
ment Command, Quantico 
Naval Station, Norfolk 
Naval Surface Warfare Center, 
Dahlgren. 
Naval Station, Everett 
Naval Undersea Warfare Center, 
Keyport 
Defense access roads 
Total: 
Amount 
$22,900,000 
$5,000,000 
$1,270,000 
$10,480,000 
$7,960,000 
$21,630,000 
$1,630,000 
$20,290,000 
$20,750,000 
$8,300,000 
$2,540,000 
$1,810,000 
$16,850,000 
$12,900,000 
$14,570,000 
$56,120,000 
$8,030,000 
$25,740,000 
$6,800,000 
$300,000 
$589,992,000 
(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated 
pursuant 
to 
the 
authorization 
of appropriations 
in 
section 
2204(a)(2), and, in the case of the project described in section 
2204(bX4), other amounts appropriated pursuant to authorizations 
enacted after this Act for the project, the Secretary of the Navy 
may acquire real property and carry out military construction 
projects for the installations and locations outside the United States, 
and in the amounts, set forth in the following table: 
Navy: Outside the United States 
Country 
Bahrain 
Greece 
Italy 
Puerto Rico 
Installation or location 
Administrative 
Support 
Unit, 
Bahrain. 
Naval Support Activity, Souda 
Bay. 
Navad Air Station, Sigonella 
Naval Support Activity, Naples 
Naval Station, Roosevelt Roads 
Amount 
$5,980,000 
$7,050,000 
$15,700,000 
$8,620,000 
$23,600,000 
110 STAT. 2768 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Navy: Outside the United States—Continued 
Country 
United Kingdom 
Installation or location 
Joint Maritime Communications 
Center, St. Mawgan 
Total: 
Amount 
$4,700,000 
$65,650,000 
SEC. 2202. FAMILY HOUSING. 
(a) CONSTRUCTION AND ACQUISITION.—^Using amounts appro-
priated pursuant to the authorization of appropriations in section 
2204(aX5)(A), the Secretary of the Navy may construct or acquire 
family housing units (including land acquisition) at the installa-
tions, for the purposes, and in the amounts set forth in the following 
table: 
Navy: Family Housing 
State 
Arizona 
California 
Florida 
Hawaii 
Maine 
Maryland 
North Carolina 
Installation 
Marine Corps Air 
Station, Yuma ... 
Marine Corps Air-
Ground Combat 
Center, 
Twent3aune 
Palms 
Marine Corps 
Base, Camp 
Pendleton 
Naval Air Station, 
Navy Public Works 
Center, San 
Diego 
Naval Station, 
Mayport. 
Marine Corps Air 
Station, 
Kaneohe Bay 
Navy Public Works 
Center, Pearl 
Harbor 
Naval Air Station 
Brunswick 
Naval Air Warfare 
Center, Patux-
ent River 
Marine Corps 
Base, Camp 
Lejeune 
Marine Corps 
Base, Camp 
Lejeune 
Purpose 
Ancillary Fa-
cility. 
Ancillary Fa-
cilities. 
202 Units 
276 Units 
366 Units 
100 Units 
54 Units 
264 Units 
92 Units 
Ancillary Fa-
cility. 
Ancillary Fa-
cility. 
94 Units 
Amount 
$709,000 
$2,938,000 
$29,483,000 
$39,837,000 
$48,719,000 
$10,000,000 
$11,676,000 
$52,586,000 
$10,925,000 
$1,233,000 
$845,000 
$10,110,000 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2769 
Navy: Family Housing—Continued 
State 
South Carolina 
Texas 
Virginia 
Washington 
Installation 
Marine Corps Air 
Station, Beau-
fort 
Corpus Christi 
Naval Complex 
Naval Air Station, 
Kingsville 
AEGIS Combat 
Systems Center, 
Wallops Island 
Naval Security 
Group Activity, 
Northwest 
Naval Station, Ev-
erett. 
Naval Submarine 
Base, Bangor 
Purpose 
140 Units 
104 Units 
48 Units 
20 Units 
Ancillary Fa-
cility. 
100 Units 
Ancillary Fa-
cility. 
Total: 
Amount 
$14,000,000 
$11,675,000 
$7,550,000 
$2,975,000 
$741,000 
$15,015,000 
$934,000 
$281,951,000 
(b) 
PLANNING 
AND DESIGN.—^Using amounts appropriated 
pursuant 
to the authorization of appropriations in 
section 
2204(a)(5)(A), the Secretary of the Navy may carry out architectural 
and engineering services and construction design activities with 
respect to the construction or improvement of military family hous-
ing units in an amount not to exceed $22,552,000. 
SEC. 2203. IMPROVEMENTS TO MIUTARY FAMILY HOUSING UNITS. 
Subject to section 2825 of title 10, United States Code, and 
using amounts appropriated pursuant to the authorization of appro-
priations in section 2204(a)(5)(A), the Secretary of the Navy may 
improve existing military family housing units in an amount not 
to exceed $205,383,000. 
SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY. 
(a) IN GENERAL.—^Funds are hereby authorized to be appro-
priated for fiscal years beginning after September 30, 1996, for 
military construction, land acquisition, and military family housing 
functions of the Department of the Navy in the total amount of 
$2,213,731,000 as follows: 
(1) For military construction projects inside the United 
States authorized by section 2201(a), $579,312,000. 
(2) For military construction projects outside the United 
States authorized by section 2201(b), $51,550,000. 
(3) For unspecified minor construction projects authorized 
by section 2805 of title 10, United States Code, $5,115,000. 
(4) For architectural and engineering services and construc-
tion design under section 2807 of title 10, United States Code, 
$49,927,000. 
(5) For military family housing functions: 
110 STAT. 2770 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(A) For construction and acquisition, planning and 
design, and improvement of military family housing and 
facilities, $499,886,000. 
(B) For support of military housing (including functions 
described in section 2833 of title 10, United States Code), 
$1,014,241,000. 
(6) For the construction of a bachelor enlisted quarters 
at the Naval Construction Battalion Center, Port Hueneme, 
California, authorized by section 2201(a) of the Military 
Construction Authorization Act for Fiscal Year 1996 (division 
B of Public Law 104-106; 110 Stat. 525), $7,700,000. 
(7) For the construction of a Strategic Maritime Research 
Center at the Naval War College, Newport, Rhode Island, 
authorized by section 2201(a) of the Military Construction 
Authorization Act for Fiscal Year 1995 (division B of Public 
Law 103-337; 108 Stat. 3031), $8,000,000. 
(8) For the construction of the large anachoic chamber 
facility at the Patuxent River Naval Warfare Center, Aircraft 
Division, Maryland, authorized by section 2201(a) of the Mili-
tary Construction Authorization Act for Fiscal Year 1993 (divi-
sion B of Public Law 102-484; 106 Stat. 2590), $10,000,000. 
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.— 
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation author-
ized by law, the total cost of all projects carried out under section 
2201 of this Act may not exceed— 
(1) the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a); 
(2) $5,200,000 (the bsdance of the amount authorized under 
section 2201(a) for the construction of a bachelors enlisted 
quarters at Naval Hospital, Great Lakes, Illinois); 
(3) $5,480,000 (the balance of the amount authorized under 
section 2201(a) for the construction of a chiller system upgrade 
at the United States Naval Academy, Maryland); and 
(4) $14,100,000 (the balance of the amount authorized 
under section 2201(b) for the construction of a bachelor enlisted 
quarters at Naval Station, Roosevelt Roads, Puerto Rico). 
(c) ADJUSTMENT.—^The total amount authorized to be appro-
priated pursuant to paragraphs (1) through (8) of subsection (a) 
is the sum of the amounts authorized to be appropriated in such 
paragraphs, reduced by $12,000,000, which represents the combina-
tion of project savings resulting from favorable bids, reduced over-
head costs, and cancellations due to force structure changes. 
SEC. 2205. BEACH REPLENISHMENT, NAVAL AIR STATION, NORTH 
ISLAND, CALIFORNIA. 
(a) COST-SHARING AGREEMENT.—^With regard to the portion 
of the military construction project for Naval Air Station, North 
Island, California, authorized by section 2201(a) and involving on-
shore and near-shore beach replenishment, the Secretary of the 
Navy shall enter into an agreement with the State of California 
and local governments in the vicinity of the project, under which 
the State and local governments agree to cover not less than 50 
percent of the cost incurred by the Secretary to carry out the 
beach replenishment portion of the project. Within amounts appro-
priated for the project, Federal expenditures may not exceed 
$9,630,000 for beach replenishment. 
r^sjC.-. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2771 
(b) ACTIVITIES PENDING AGREEMENT.—The Secretary shall not 
delay commencement of, or activities under, the construction project 
described in subsection (a), including the beach replenishment 
portion of the project, pending the execution of the cost-sharing 
agreement. 
TITLE XXIII—AIR FORCE 
Sec. 2301. Authorized Air Force construction and land acquisition projects. 
Sec. 2302. Family housing. 
Sec. 2303. Improvements to military family housing units. 
Sec. 2304. Authorization of appropriations, Air Force. 
Sec. 2305. Elimination of authority to carry out fiscal year 1995 project, 
Spangdahlem Air Force Base, Germany. 
SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND 
ACQUISITION PROJECTS. 
(a) INSIDE THE UNITED STATES.—^Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(aXl), the Secretary of the Air Force may acquire real property 
and carry out military construction projects for the installations 
and locations inside the United States, and in the amounts, set 
forth in the following table: 
Air Force: Inside the United States 
State 
Alabama 
Alaska 
Arizona 
Arkansas 
California 
Colorado 
Delaware 
Florida 
Georgia 
Idaho 
Kansas 
Louisiana 
Installation or location 
Maxwell Air Force Base 
Elmendorf Air Force Base 
Eielson Air Force Base 
King Salmon Air Force Base 
Davis-Monthan 
Air 
Force 
Base. 
Luke Air Force Base 
Little Rock Air Force Base .... 
Beale Air Force Base 
Edwards Air Force Base 
Travis Air Force Base 
Vandenberg Air Force Base 
Buckley Air National Guard 
Base. 
Falcon Air Force Station 
Peterson Air Force Base 
United 
States 
Air 
Force 
Academy. 
Dover Air Force Base 
Eglin Air Force Base 
Eglin Aiixiliary Field 9 
Patrick Air Force Base 
Tyndall Air Force Base 
Moody Air Force Base 
Robins Air Force Base 
Mountain Home Air Force 
Base. 
McConnell Air Force Base 
Barksdale Air Force Base 
Amount 
$7,875,000 
$21,530,000 
$3,900,000 
$5,700,000 
$9,920,000 
$6,700,000 
$18,105,000 
$14,425,000 
$20,080,000 
$14,980,000 
$3,290,000 
$17,960,000 
$2,095,000 
$20,720,000 
$12,165,000 
$19,980,000 
$4,590,000 
$6,825,000 
$2,595,000 
$3,600,000 
$3,350,000 
$25,045,000 
$15,945,000 
$19,130,000 
$4,890,000 
110 STAT. 2772 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Air Force: Inside the United States—Continued 
State 
Maryland 
Mississippi 
Montana 
Nevada 
New Mexico 
New Jersey 
North Carolina 
North Dakota 
Ohio 
Oklahoma 
South Carolina 
South Dakota 
Tennessee 
Texas 
Utah 
Virginia 
Washington 
Wyoming 
Installation or location 
Andrews Air Force Base 
Keesler Air Force Base 
Malstrom Air Force Base 
Indian 
Springs 
Air Force 
Auxiliary Air Field 
Nellis Air Force Base 
Cannon Air Force Base 
Kirtland Air Force Base 
McGuire Air Force Base 
Pope Air Force Base 
Seymour Johnson Air Force 
Base. 
Grand Forks Air Force Base 
Minot Air Force Base 
Wright-Patterson Air Force 
Base. 
Tinker Air Force Base 
Charleston Air Force Base .... 
Shaw Air Force Base 
Ellsworth Air Force Base 
Arnold Engineering Develop-
ment Center 
Brooks Air Force Base 
Dyess Air Force Base 
Kelly Air Force Base 
Lackland Air Force Base 
Sheppard Air Force Base 
Hill Air Force Base 
Langley Air Force Base 
Fairchild Air Force Base 
F.E. Warren Air Force Base 
Total: 
Amount 
$8,140,000 
$14,465,000 
$6,300,000 
$4,690,000 
$9,900,000 
$7,100,000 
$10,000,000 
$8,080,000 
$5,915,000 
$11,280,000 
$12,470,000 
$3,940,000 
$7,400,000 
$9,880,000 
$37,410,000 
$14,465,000 
$4,150,000 
$12,481,000 
$5,400,000 
$12,295,000 
$3,250,000 
$9,413,000 
$9,400,000 
$3,690,000 
$8,005,000 
$18,155,000 
$57,065,000 
$3,700,000 
$603,834,000 
(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated 
pursuant 
to the 
authorization 
of appropriations 
in 
section 
2304(a)(2), the Secretary of the Air Force may acquire real property 
and carry out military construction projects for the installations 
and locations outside the United States, and in the amounts, set 
forth in the following table: 
Air Force: Outside the United States 
Country 
Germany 
Italy 
Korea 
United Kingdom 
Installation or location 
Ramstein Air Force Base 
Spangdahlem Air Base 
Aviano Air Base 
Osan Air Base 
Incirlik Air Base 
Croughton Royal Air Force 
Base. 
Lakenheath Royal Air Force 
Base. 
Amount 
$5,370,000 
$1,890,000 
$10,060,000 
$9,780,000 
$7,160,000 
$1,740,000 
$17,525,000 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Air Force: Outside the United States—Continued 
110 STAT. 2773 
Country 
Overseas Classified 
Installation or location 
Mildenhall Royal Air Force 
Base. 
Classified Locations 
Total: 
Amount 
$6,195,000 
$18,395,000 
$78,115,000 
SEC. 2302. FAMILY HOUSING. 
(a) CONSTRUCTION AND ACQUISITION.—^Using amounts appro-
priated pursuant to the authorization of appropriations in section 
2304(aX5XA), the Secretary of the Air Force may construct or 
acquire family housing units (including land acquisition) at the 
installations, for the purposes, and in the amounts set forth in 
the following table: 
Air Force: Family Housing 
State 
Alaska 
District of Colum-
bia. 
Florida 
Georgia 
Louisiana 
Massachusetts 
Missouri 
Montana 
Nevada 
New Mexico 
North Dakota 
Installation 
Eielson Air Force Base 
Eielson Air Force Base 
Beale Air Force Base 
Los Angeles Air Force 
Base 
Travis Air Force Base 
Vandenberg Air Force 
Base 
Boiling Air Force Base 
Eglin Auxiliary Field 
9. 
MacDill Air Force 
Base. 
Patrick Air Force Base 
Tyndall Air Force 
Base. 
Robins Air Force Base 
Barksdale Air Force 
Base 
Hanscom Air Force 
Base 
Whiteman Air Force 
Base 
Malstrom Air Force 
Base 
Nellis Air Force Base 
Kirtland Air Force 
Grand Forks Air Force 
Base 
Minot Air Force Base 
Lackland Air Force 
Base 
Lackland Air Force 
Base 
Purpose 
72 Units 
Ancillary Facility 
56 Units 
25 Units 
70 Units 
112 Units 
40 Units 
1 Unit 
56 Units 
Ancillary Facility 
42 Units 
46 Units 
80 Units 
32 Units 
68 Units 
98 Units 
50 Units 
50 Units 
66 Units 
46 Units 
82 Units 
Ancillary Facility 
Amount 
$21,127,000 
$2,950,000 
$8,893,000 
$6,425,000 
$8,631,000 
$20,891,000 
$5,000,000 
$249,000 
$8,822,000 
$2,430,000 
$6,000,000 
$5,252,000 
$9,570,000 
$5,100,000 
$9,600,000 
$15,688,000 
$7,955,000 
$5,450,000 
$7,784,000 
$8,740,000 
$11,500,000 
$800,000 
110 STAT. 2774 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Air Force: Family Housing—Continued 
State 
Washington 
Installation 
McChord Air Force 
Base 
Purpose 
50 Units 
Total: 
Amount 
$5,659,000 
$184,516,000 
(b) 
PLANNING 
AND DESIGN.—Using amounts 
appropriated 
pursuant 
to the authorization 
of appropriations 
in 
section 
2304(a)(5)(A), the Secretary of the Air Force may carry out architec-
tural and engineering services and construction design activities 
with respect to the construction or improvement of military family 
housing units in an amount not to exceed $9,590,000. 
SEC. 2303. IMPROVEMENTS TO MIUTARY FAMILY HOUSING UNITS. 
Subject to section 2825 of title 10, United States Code, and 
using amounts appropriated pursuant to the authorization of appro-
priations in section 2304(a)(5)(A), the Secretary of the Air Force 
may improve existing military family housing units in an amount 
not to exceed $123,650,000. 
SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE. 
(a) IN GENERAL.—Funds are hereby authorized to be appro-
priated for fiscal years beginning after September 30, 1996, for 
military construction, land acquisition, and military family housing 
functions of the Department of the Air Force in the total amount 
of $1,894,594,000 as follows: 
(1) For military construction projects inside the United 
States authorized by section 2301(a), $603,834,000. 
(2) For military construction projects outside the United 
States authorized by section 2301(b), $78,115,000. 
(3) For unspecified minor construction projects authorized 
by section 2805 of title 10, United States Code, $9,328,000. 
(4) For architectural and engineering services and construc-
tion design under section 2807 of title 10, United States Code, 
$50,687,000. 
(5) For military housing functions: 
(A) For construction and acquisition, planning and 
design, and improvement of military family housing and 
facilities, $317,756,000. 
(B) For support of military family housing (including 
the functions described in section 2833 of title 10, United 
States Code), $829,474,000. 
(6) For the construction of a corrosion control facility at 
Tinker Air Force Base, Oklahoma, authorized by section 2301(a) 
of the Military Construction Authorization Act for Fiscal Year 
1996 (division B of Public Law 104-106; 110 Stat. 530), 
$5,400,000. 
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.— 
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation author-
ized by law, the total cost of all projects carried out under section 
2301 of this Act may not exceed the total amount authorized to 
be appropriated under paragraphs (1) and (2) of subsection (a). 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2775 
SEC. 2305. ELIMINATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
1995 
PROJECT, 
SPANGDAHLEM 
AIR 
FORCE 
BASE, 
GERMANY. 
(a) ELIMINATION OF PROJECT.—^The table in section 2301(b) 
of the Military Construction Authorization Act for Fiscal Year 1995 
(division B of Public Law 103-337; 108 Stat. 3037) is amended 
in the item relating to Spangdahlem Air Base, Germany, by striking 
out "$9,473,000" in the amount column and inserting in lieu thereof 
"$7,373,000", such reduction corresponding to the project to upgrade 
the sewage and storm water system at the installation. 
(b) CONFORMING AMENDMENT TO AUTHORIZATION OF APPROPRIA-
TIONS.—Section 2304(a) of the Military Construction Authorization 
Act for Fiscal Year 1995 (division B of Public Law 103-337; 108 
Stat. 3038) is amended— 
(1) in the matter preceding paragraph (1), by striking out 
"$1,601,602,000" and inserting in lieu thereof "$1,599,502,000"; 
and 
(2) in paragraph (2), by striking out "$38,273,000" and 
inserting in Heu thereof "$36,173,000". 
TITLE XXIV—DEFENSE AGENCIES 
Sec. 2401. Authorized Defense Agencies construction and land acquisition projects. 
Sec. 2402. Military housing planning and design. 
Sec. 2403. Improvements to military family housing units. 
Sec. 2404. Military housing improvement program. 
Sec. 2405. Energy conservation projects. 
Sec. 2406. Authorization of appropriations, Defense Agencies. 
Sec. 2407. Reduction in amounts authorized to be appropriated for fiscal year 1996 
Defense Agencies military construction, land acquisition, and military 
family housing functions. 
SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND 
LAND ACQUISITION PROJECTS. 
(a) INSIDE THE UNITED STATES.—^Using amounts appropriated 
pursuant 
to the authorization 
of appropriations 
in 
section 
2406(a)(1), and, in the case of the projects described in paragraphs 
(2) and (3) of section 2406(b), other amounts appropriated pursuant 
to authorizations enacted after this Act for the projects, the Sec-
retary of Defense may acquire real property and carry out miUtary 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table: 
Defense Agencies: Inside the United States 
^ e n c y 
Chemical Demilitariza-
tion Program 
Defense Finance & Ac-
counting Service 
Installation or location 
Pueblo 
Chemical 
Activity, 
Colorado 
Charleston, South Carolina ... 
Fort Sill, Oklahoma 
Gentile Air Force 
Station, 
Ohio 
Griffiss Air Force Base, New 
York 
Loring Air Force Base, Maine 
Naval Training Center, Or-
lando, Florida 
Amount 
$179,000,000 
$6,200,000 
$12,864,000 
$11,400,000 
$10,200,000 
$6,900,000 
$2,600,000 
110 STAT. 2776 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Defense Agencies: Inside the United States—Continued 
Agency 
Defense Intelligence 
Agency 
Defense Logistics 
Agency 
Defense Medical Facil-
ity Office 
Special Operations 
Command 
Installation or location 
Norton Air Force Base, Cali-
fornia 
OfFutt Air Force Base, Ne-
braska 
Rock Island Arsenal, Illinois 
Boiling Air Force Base, Dis-
trict of Columbia 
Altus Air Force Base, Okla-
homa 
Andrews 
Air 
Force 
Base, 
Maryland 
Barksdale Air Force Base, 
Louisiana 
Defense Construction Supply 
Center, Columbus, Ohio 
Defense 
Distribution, 
San 
Diego, California 
Elmendorf Air Force Base, 
Alaska 
McConnell Air Force Base, 
Kansas 
Naval Air Facility, El Centro, 
California 
Naval Air Station, Fallon, 
Nevada 
Naval Air Station, Oceana, 
Virginia 
Shaw Air Force Base, South 
Carolina 
Travis Air Force Base, Cali-
fornia 
'. 
Andrews 
Air 
Force 
Base, 
Maryland 
Charleston Air Force Base, 
South Carolina 
Fort Bliss, Texas 
Fort Bragg, North Carolina 
Fort Hood, Texas 
Marine Corps Base, Camp 
Pendleton, California 
Maxwell Air Force Base, Ala-
bama 
Naval Air Station, Key West, 
Florida 
Naval Air Station, Norfolk, 
Virginia 
Naval Air Station, Lemoore, 
California 
Fort Bragg, North Carolina 
Amount 
$13,800,000 
$7,000,000 
$14,400,000 
$6,790,000 
$3,200,000 
$12,100,000 
$4,300,000 
$600,000 
$15,700,000 
$21,000,000 
$2,200,000 
$5,700,000 
$2,100,000 
$1,500,000 
$2,900,000 
$15,200,000 
$15,500,000 
$1,800,000 
$6,600,000 
$11,400,000 
$1,950,000 
$3,300,000 
$25,000,000 
$15,200,000 
$1,250,000 
$38,000,000 
$14,000,000 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2777 
Defense Agencies: Inside the United States—Continued 
Agency 
Installation or location 
Fort Campbell, Kentucky 
MacDill Air Force Base, Flor-
ida 
Naval 
Amphibious 
Base, 
Coronado, California 
Naval Station, Ford Island, 
Pearl Harbor, Hawaii 
Total: 
Amount 
$4,200,000 
$9,600,000 
$7,700,000 
$12,800,000 
$525,454,000 
(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated 
pursuant to the authorization of appropriations in 
section 
2406(a)(2), the Secretary of Defense may acquire real property 
and carry out military construction projects for the installations 
and locations outside the United States, and in the amounts, set 
forth in the following table: 
Defense Agencies: Outside the United States 
Agency 
Defense Logistics 
Agency 
Defense Medical Facil-
ity Office 
Installation or location 
Moron Air Base, Spain 
Naval Air Station, Sigonella, 
Italy 
Administrative Support Unit, 
Bahrain, Bahrain 
Total: 
Amount 
$12,958,000 
$6,100,000 
$4,600,000 
$23,658,000 
SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN. 
Using amounts appropriated pursuant to the authorization of 
appropriation in section 2406(a)(14)(A), the Secretary of Defense 
may carry out architectural and engineering services and construc-
tion design activities with respect to the construction or improve-
ment of military family housing units in an amount not to exceed 
$500,000. 
SEC. 2403. IMPROVEMENTS TO MIUTARY FAMILY HOUSING UNITS. 
Subject to section 2825 of title 10, United States Code, and 
using amounts appropriated pursuant to the authorization of appro-
priation in section 2406(a)(14)(A), the Secretary of Defense may 
improve existing military family housing units in an amount not 
to exceed $3,871,000. 
SEC. 2404. MILITARY HOUSING IMPROVEMENT PROGRAM. 
(a) AVAILABILITY OF FUNDS FOR CREDIT TO FAMILY HOUSING 
IMPROVEMENT FUND.—(1) Of the amount authorized to be appro-
priated pursuant to section 2406(a)(14)(C), $25,000,000 shall be 
available for credit to the Department of Defense Family Housing 
Improvement Fund established by section 2883(a)(1) of title 10, 
United States Code. 
(2) Of the amount authorized to be appropriated pursuant 
to section 2406(a)(14)(D), $5,000,000 shall be available for credit 
110 STAT. 2778 
PUBLIC LAW 104-201—SEPT. 23, 1996 
to the Department of Defense Military Unaccompanied Housing 
Improvement Fund established by section 2883(a)(2) of such title. 
(b) USE OF FUNDS.—(1) The Secretary of Defense may use 
funds credited to the Department of Defense Family Housing 
Improvement Fund under subsection (a)(1) to carry out any activi-
ties authorized by subchapter IV of chapter 169 of such title with 
respect to military family housing. 
(2) The Secretary of Defense may use funds credited to the 
Department of Defense Military Unaccompanied Housing Improve-
ment Fund under subsection (a)(2) to carry out any activities 
authorized by subchapter IV of chapter 169 of such title with 
respect to military unaccompanied housing. 
SEC. 2405. ENERGY CONSERVATION PROJECTS. 
Using amounts appropriated pursuant to the authorization of 
appropriations in section 2406(aX12), the Secretary of Defense may 
carry out energy conservation projects under section 2865 of title 
10, United States Code. 
SEC. 2406. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES. 
(a) IN GENERAL.—Funds are hereby authorized to be appro-
priated for fiscal years beginning after September 30, 1996, far 
military construction, land acquisition, and military family housing 
functions of the Department of Defense (other than the military 
departments), in the total amount of $3,379,703,000 as follows: 
(1) For military construction projects inside the United 
States authorized by section 2401(a), $344,854,000. 
(2) For military construction projects outside the United 
States authorized by section 2401(b), $23,658,000. 
(3) For military construction projects at Naval Hospital, 
Portsmouth, Virginia, hospital replacement, authorized by sec-
tion 2401(a) of the Military Construction Authorization Act 
for Fiscal Years 1990 and 1991 (division B of Public Law 
101-189; 103 Stat. 1640), $24,000,000. 
(4) For military construction projects at Walter Reed Army 
Institute of Research, Maryland, hospital replacement, author-
ized by section 2401(a) of the Military Construction Authoriza-
tion Act for Fiscal Year 1993 (division B of Public Law 102-
484; 106 Stat. 2599), $72,000,000. 
(5) For military construction projects at Fort Bragg, North 
Carolina, hospital replacement, authorized by section 2401(a) 
of the Military Construction Authorization Act for Fiscal Year 
1993 (106 Stat. 2599), $89,000,000. 
(6) For military construction projects at Pine Bluff Arsenal, 
Arkansas, authorized by section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 1995 (division 
B of the Public Law 103-337; 108 Stat. 3040), $46,000,000. 
(7) For military construction projects at Umatilla Army 
Depot, Oregon, authorized by section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 1995 (108 Stat. 
3040), $64,000,000. 
(8) For military construction projects at the Defense 
Finance and Accounting Service, Columbus, Ohio, authorized 
by section 2401(a) of the Military Construction Authorization 
Act of Fiscal Year 1996 (division B of Public Law 104-106; 
110 Stat. 535), $20,822,000. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2779 
(9) For contingency construction projects of the Secretary 
of Defense under section 2804 of title 10, United States Code, 
$4,500,000. 
(10) For unspecified minor construction projects under sec-
tion 2805 of title 10, United States Code, $21,874,000. 
(11) For architectural £uid engineering services 
and 
construction design under section 2807 of title 10, United States 
Code, $12,239,000. 
(12) For energy conservation projects under section 2865 
of title 10, United States Code, $47,765,000. 
(13) For base closure and realignment activities as author-
ized by the Defense Base Closure and Realignment Act of 
1990 (part A of title XXK of Public Law 101-510; 10 U.S.C. 
2687 note), $2,507,476,000. 
(14) For military family housing functions: 
(A) For improvement and planning of military family 
housing and facilities, $4,371,000. 
(B) For support of military housing (including functions 
described in section 2833 of title 10, United States Code), 
$30,963,000, of which not more than $25,637,000 may be 
obligated or expended for the leasing of military family 
housing units worldwide. 
(C) For credit to the Department of Defense Family 
Housing Improvement Fund as authorized by section 
2404(a)(1) of this Act, $25,000,000. 
(D) For credit to the Department of Defense Military 
Unaccompanied Housing Improvement Fund as authorized 
by section 2404(a)(2) of this Act, $5,000,000. 
(E) For the Homeowners Assistance Program as 
authorized by section 2832 of title 10, United States Code, 
$36,181,000, to remain available until expended. 
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.— 
Notwithstanding the cost variation authorized by section 2853 of 
title 10, United States Code, and any other cost variations author-
ized by law, the total cost of all projects carried out under section 
2401 of this Act may not exceed— 
(1) the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a); 
(2) $179,000,000 (the balance of the amount authorized 
under section 2401(a) of this Act for the construction of a 
chemical demilitarization facility at Pueblo Army Depot, 
Colorado); and 
(3) $1,600,000 (the bgdance of the amount authorized under 
section 2401(a) of this Act for the construction of a replacement 
facility for the medical and dental clinic, Key West Naval 
Air Station, Florida). 
SEC. 2407. REDUCTION IN AMOUNTS AUTHORIZED TO BE APPRO-
PRIATED FOR FISCAL YEAR 1996 DEFENSE AGENCIES 
MILITARY CONSTRUCTION, LAND ACQUISITION, AND MILI-
TARY FAMILY HOUSING FUNCTIONS. 
Section 2405 of the Military Construction Authorization Act 
for Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 
537) is amended by adding at the end the following new subsection: 
"(c) ADJUSTMENT.—^The total amount authorized to be appro-
priated pursuant to paragraphs (1) through (11) of subsection (a) 
is the sum of the amounts authorized to be appropriated in such 
110 STAT. 2780 
PUBLIC LAW 104-201—SEPT. 23, 1996 
paragraphs, reduced by $7,000,000, which represents the combina-
tion of project savings resulting from favorable bids, reduced over-
head costs, and cancellations due to force structure changes.". 
TITLE XXV—NORTH ATLANTIC TREATY 
ORGANIZATION 
SECURITY 
INVEST-
MENT PROGRAM 
Sec. 2501. Authorized NATO construction and land acquisition projects. 
Sec. 2502. Authorization of appropriations, NATO. 
SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISI-
TION PROJECTS. 
The Secretary of Defense may make contributions for the North 
Atleintic Treaty Organization Security Investment program as pro-
vided in section 2806 of title 10, United States Code, in an amount 
not to exceed the sum of the amount authorized to be appropriated 
for this purpose in section 2502 and the amount collected from 
the North Atlantic Treaty Organization as a result of construction 
previously financed by the United States. 
SFC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO. 
Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 1996, for contributions by the Sec-
retary of Defense under section 2806 of title 10, United States 
Code, for the share of the United States of the cost of projects 
for the North Atlantic Treaty Security Investment program as 
authorized by section 2501, in the amount of $172,000,000. 
TITLE XXVI—GUARD AND RESERVE 
FORCES FACILITIES 
Sec. 2601. Authorized Guard and Reserve construction and land acquisition 
X
rojects. 
uthorization and funding for construction and improvement of Naval 
Reserve Centers. 
Sec. 2603. Upgrade Air National Guard facilities, Bangor International Airport, 
Maine. 
SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND 
LAND ACQUISITION PROJECTS. 
There are authorized to be appropriated for fiscal years begin-
ning after September 30, 1996, for the costs of acquisition, architec-
tural and engineering services, and construction of facilities for 
the Guard and Reserve Forces, and for contributions therefor, under 
chapter 1803 of title 10, United States Code (including the cost 
of acquisition of land for those facilities), the following amounts: 
(1) For the Department of the Army— 
(A) for the Army National Guard of the United States, 
$59,194,000; and 
(B) for the Army Reserve, $55,543,000. 
(2) For the Department of the Navy, for the Naval and 
Marine Corps Reserve, $32,779,000. 
(3) For the Department of the Air Force— 
(A) for the Air National Guard of the United States, 
$188,505,000; and 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2781 
(B) for the Air Force Reserve, $52,805,000. 
SEC. 2602. AUTHOMZATION AND FUNDING FOR CONSTRUCTION AND 
IMPROVEMENT OF NAVAL RESERVE CENTERS. 
(a) ARMY RESERVE CENTERS.—^Using amounts appropriated 
under the heading "MILITARY CONSTRUCTION, NAVAL RESERVE" in 
the Military Construction Appropriations Act, 1995 (Public Law 
103-307; 108 Stat. 1661), for the construction of a Naval Reserve 
Center in Seattle, Washington, the Secretary of the Army may 
carry out a military construction project for the construction of 
an Army Reserve Center at Fort Lawton, Washington, in the total 
amount of $5,200,000, of which $700,000 may be used for program 
and design activities relating to such construction. 
(b) NAVAL RESERVE FACILITIES.—^Using amounts appropriated 
under the heading "MILITARY CONSTRUCTION, NAVAL RESERVE" in 
the Military Construction Appropriations Act, 1995 (Public Law 
103-307; 108 Stat. 1661), for the construction of a Naval Reserve 
Center in Seattle, Washington, the Secretary of the Navy may 
carry out— 
(1) a military construction project for the construction of 
an addition to the Naval Reserve Center in Tacoma, Washing-
ton, in the total amount of $4,200,000; 
(2) unspecified minor construction at Naval Reserve facili-
ties in the total amount of $500,000; and 
(3) planning and design activities with respect to improve-
ments at Naval Reserve facilities in the total amount of 
$500,000. 
SEC. 2603. UPGRADE AIR NATIONAL GUARD FACIUTIES, BANGOR 
INTERNATIONAL AIRPORT, MAINE. 
(a) PROJECT AUTHORIZED.—^Using amounts appropriated pursu-
ant to the authorization of appropriations in section 2601(3)(A) 
and amounts appropriated pursuant to authorizations of appropria-
tions enacted after the date of the enactment of this Act, the 
Secretary of the Air Force may carry out a construction project 
to upgrade Air National Guard base and support facilities at Bangor 
International Airport, Maine. The Secretary may contract for 
architectural and engineering services and construction design serv-
ices in connection with the construction project. 
(b) LIMITATION ON TOTAL COST OF PROJECT.—^The total cost 
of the construction project authorized by subsection (a) may not 
exceed $13,000,000. 
(c) FISCAL YEAR 1997 FUNDING.—Of the amount authorized 
to be appropriated in section 2601(3)(A), $7,000,000 shall be avail-
able to carry out the construction project authorized by subsection 
(a). 
TITLE XXVII—EXPIRATION AND 
EXTENSION OF AUTHORIZATIONS 
Sec. 2701. Expiration of authorizations and amounts required to be specified by 
law. 
Sec. 2702. Extension of authorizations of certain fiscal year 1994 projects. 
Sec. 2703. Extension of authorizations of certain fiscal year 1993 projects. 
Sec. 2704. Extension of authorizations of certain fiscal year 1992 projects. 
Sec. 2705. Effective date. 
110 STAT. 2782 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 
2701. EXPIRATION 
OF AUTHORIZATIONS 
AND 
AMOUNTS 
REQUIRED TO BE SPECIFIED BY LAW. 
(a) EXPIRATION OF AUTHORIZATIONS AFTER THREE YEARS.— 
Except as provided in subsection (b), all authorizations contained 
in titles XXI through XXVI for military construction projects, land 
acquisition, family housing projects and facilities, and contributions 
to the North Atlantic Treaty Organization Security Investment 
program (and authorizations of appropriations therefor) shall expire 
on the later of— 
(1) October 1, 1999; or 
(2) the date of the enactment of an Act authorizing funds 
for military construction for fiscal year 2000. 
(b) EXCEPTION.—Subsection (a) shall not apply to authorizations 
for military construction projects, land acquisition, family housing 
projects and facilities, and contributions to the North Atlantic 
Treaty Organization Security Investment program (and authoriza-
tions of appropriations therefor), for which appropriated funds have 
been obligated before the later of— 
(1) October 1, 1999; or 
(2) the date of the enactment of an Act authorizing funds 
for fiscal year 2000 for military construction projects, land 
acquisition, family housing projects and facilities, or contribu-
tions to the North Atlantic Treaty Organization Security Invest-
ment program. 
SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
1994 PROJECTS. 
(a) EXTENSIONS.—Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1994 (division B 
of Public Law 103-160; 107 Stat. 1880), authorizations for the 
projects set forth in the tables in subsection (b), as provided in 
section 2101, 2102, 2201, 2301, or 2601 of that Act, shall remain 
in effect until October 1, 1997, or the date of the enactment of 
an Act authorizing funds for military construction for fiscal year 
1998, whichever is later. 
(b) TABLES.—The tables referred to in subsection (a) are as 
follows: 
Army: Extension of 1994 Project Authorizations 
State 
New Jersey 
North Carolina .... 
Wisconsin 
Installation or loca* 
tion 
Picatinny Arsenal 
Fort Bragg 
Fort McCoy 
Project 
Advance Warhead 
Development Fa-
cility 
Land Acquisition 
Family Housing 
Construction (16 
units) 
Amount 
$4,400,000 
$15,000,000 
$2,950,000 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Navy: Extension of 1994 Project Authorizations 
110 STAT. 2783 
State or location 
California 
Connecticut 
New Jersey 
Virginia 
Various Locations 
Various Locations 
Installation or loca-
tion 
Camp Pendleton Ma-
rine Corps Base 
New London Naval 
Submarine Base 
Earle Naval Weapons 
Station 
Oceana Naval Air Sta-
tion 
Various Locations 
Various Locations 
Project 
Sewage Facility .... 
Hazardous Waste 
Transfer Facility 
Explosives Holding 
Yard 
Jet Engine Test 
Cell Replace-
ment 
Land Acquisition 
Inside the Unit-
ed States 
Land Acquisition 
Outside the 
United States .... 
Amount 
$7,930,000 
$1,450,000 
$1,290,000 
$5,300,000 
$540,000 
$800,000 
Air Force: Extension of 1994 Project Authorizations 
State 
California 
Florida 
Mississippi 
North Carolina 
Virginia 
Installation or loca-
tion 
Eielson Air Force Base 
Elmendorf Air Force 
Base 
Beale Air Force Base 
Tyndall Air Force 
Base. 
Keesler Air Force 
Base. 
Pope Air Force Base ... 
Langley Air Force 
Base 
Project 
Upgrade Water 
Treatment Plant 
Corrosion Control 
Facility 
Educational Cen-
ter 
Base Supply Logis-
tics Center 
Upgrade Student 
Dormitory 
Add To and Alter 
Dormitories 
Fire Station 
Amount 
$3,750,000 
$5,975,000 
$3,150,000 
$2,600,000 
$4,500,000 
$4,300,000 
$3,850,000 
Army National Guard: Extension of 1994 Project 
Authorizations 
State 
Alabama 
Installation or loca-
tion 
Birmingham 
Project 
Aviation Support 
Facility 
Amount 
$4,907,000 
110 STAT. 2784 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Army National Guard: Extension of 1994 Project 
Authorizations—Continued 
State 
Arizona 
California 
New Mexico 
Pennsylvania 
South Carolina 
Installation or loca-
tion 
Marana 
Marana 
Fresno 
Van Nuys 
White Sands Missile 
Range 
Indiantown Gap 
Johnstown 
Johnstown 
Summerville 
Project 
Organizational 
Maintenance 
Shop 
Dormitory/Dining 
Facility 
Organizational 
Maintenance 
Shop Modifica-
tion 
Armory Addition 
Organizational 
Maintenance 
Shop 
Tactical Site 
MATES 
State Military 
Building 
Armory Addition/ 
Flight Facility ... 
Armory 
Organizational 
Maintenance 
Shop 
Amount 
$553,000 
$2,919,000 
$905,000 
$6,518,000 
$2,940,000 
$1,995,000 
$3,570,000 
$9,200,000 
$5,004,000 
$3,000,000 
$834,000 
SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
1993 PROJECTS. 
(a) EXTENSIONS.—Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1993 (division B 
of Public Law 102-484; 106 Stat. 2602), authorizations for the 
projects set forth in the tables in subsection (b), as provided in 
section 2101, 2301, or 1601 of that Act and extended by section 
2702 of the Military Construction Authorization Act for Fiscal Year 
1996 (division B of Public Law 104-106; 110 Stat. 541), shall 
remain in effect until October 1, 1997, or the date of the enactment 
of an Act authorizing funds for military construction for fiscal 
year 1998, whichever is later. 
(b) TABLES.—The tables referred to in subsection (a) are as 
follows: 
Army: Extension of 1993 Project Authorization 
State 
Arkansas 
Installation or loca-
tion 
Pine Bluff Arsenal 
Project 
Ammunition De-
militarization 
Support Facil-
ity 
Amount 
$15,000,000 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2785 
Air Force: Extension of 1993 Project Authorization 
Country 
Portugal 
Installation or loca-
tion 
Project 
Water Wells 
Amount 
$865,000 
Army National Guard: Extension of 1993 Project 
Authorizations 
State 
New Mexico 
Installation or loca-
tion 
Tuscaloosa 
Union Springs 
Clayton 
Project 
Armory 
Armory 
Armory 
Amount 
$2,273,000 
$813,000 
$1,400,000 
SEC. 2704. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL 
YEAR 1992 PROJECTS. 
(a) EXTENSIONS.—Notwithstanding section 2701 of the MiUtary 
Construction Authorization Act for Fiscal Year 1992 (division B 
of Public Law 102-190; 105 Stat. 1535), authorizations for the 
projects set forth in the table in subsection (b), as provided in 
section 2201 of that Act and extended by section 2702(a) of the 
Military Construction Authorization Act for Fiscal Year 1995 (divi-
sion B of Public Law 103-337; 108 Stat. 3047) and section 2703(a) 
of the Military Construction Authorization Act for Fiscal Year 1996 
(division B of Public Law 104-106; 110 Stat. 543), shall remain 
in effect until October 1, 1997, or the date of the enactment of 
£in Act authorizing funds for military construction for fiscal year 
1998, whichever is later. 
(b) TABLE.—^The table referred to in subsection (a) is as follows: 
Army: Extension of 1992 Project Authorizations 
State 
Installation or loca-
tion 
Umatilla Army Depot 
Umatilla Army Depot 
Project 
Ammunition De-
militarization 
Support Facil-
ity 
Ammunition De-
militarization 
Utilities 
Amount 
$3,600,000 
$7,500,000 
SEC. 2705. EFFECTIVE DATE. 
Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take 
effect on the later of— 
(1) October 1, 1996; or 
(2) the date of the enactment of this Act. 
110 STAT. 2786 
PUBLIC LAW 104-201—SEPT. 23, 1996 
TITLE XXVIII—GENERAL PROVISIONS 
Subtitle A—^Military Construction Program and Military Family Housing 
Changes 
Sec. 2801. Increase in certain thresholds for unspecified 
minor 
construction 
projects. 
Sec. 2802. Redesignation of North Atlantic Treaty Organization 
Infrastructure 
program. 
Sec. 2803. Improvements to family housing units. 
Sec. 2804. Availability of funds for planning, execution, and administration of 
contracts for family housing and unaccompanied housing. 
Subtitle B—Defense Base Closure and Realignment 
Sec. 2811. Restoration of authority for certain intragovemment transfers under 
1988 base closure law. 
Sec. 2812. Contracting for certain services at facilities remaining on closed installa-
tions. 
Sec. 2813. Authority to compensate owners of manufactured housing. 
Sec. 2814. Additional purpose for which adjustment and diversification assistance 
is authorized. 
Sec. 2815. Payment of stipulated penalties assessed under CERCLA iri connection 
with Loring Air Force Base, Maine. 
Sec. 2816. Plan for utilization, reutilization, or disposal of Mississippi Army Ammu-
nition Plant. 
Subtitle C—^Land Conveyances 
PART I—ARMY CONVEYANCES 
Sec. 2821. Transfer of lands, Arlington National Cemetery, Arlington, Virginia. 
Sec. 2822. Land transfer, Fort Sill, Oklahoma. 
Sec. 2823. Land conveyance, Anny Reserve Center, Rushville, Indiana. 
Sec. 2824. Land conveyance. Army Reserve Center, Anderson, South Carolina. 
Sec. 2825. Land conveyance. Army Reserve Center, Montpelier, Vermont. 
Sec. 2826. Land conveyance. Crafts Brothers Reserve Training Center, Manchester, 
New Hampshire. 
Sec. 2827. Land conveyance. Pine Bluff Arsenal, Arkansas. 
Sec. 2828. Reaffirmation of land conveyances. Fort Sheridan, Illinois. 
PART II—NAVY CONVEYANCES 
Sec. 2831. Land transfer, Potomac Annex, District of Columbia. 
Sec. 2832. Land exchange, St. Helena Annex, Norfolk Naval Shipyard, Virginia. 
Sec. 2833. Land conveyance, Calverton Pine Barrens, Naval Weapons Industrial 
Reserve Plant, Calverton, New York. 
Sec. 2834. Land conveyance, former naval reserve facility, Lewes, Delaware. 
Sec. 2835. Modification of land conveyance authority. Naval Reserve Center, 
Seattle, Washington. 
Sec. 2836. Release of condition on reconveyance of transferred land, Guam. 
Sec. 2837. Lease to facilitate construction of reserve center. Naval Air Station, 
Meridian, Mississippi. 
PART III—^AIR FORCE CONVEYANCES 
Sec. 2841. Land conveyance. Radar Bomb Scoring Site, Belle Fourche, South 
Dakota. 
Sec. 2842. Conveyance of primate research complex and Air Force-owned chim-
panzees, HoUoman Air Force Base, New Mexico. 
PART IV—OTHER CONVEYANCES 
Sec. 2851. Land conveyance, Tatum Salt Dome Test Site, Mississippi. 
Sec. 2852. Land conveyance, William Langer Jewel Bearing Plant, RoUa, North 
Dakota. 
Sec. 2853. Land conveyance. Air Force Plant No. 85, Columbus, Ohio. 
Sec. 2854. Modification of boundaries of White Sands National Monument and 
White Sands Missile Range. 
Subtitle D—Other Matters 
Sec. 2861. Authority to grant easements for rights-of-way. 
Sec. 2862. Authority to enter into cooperative agreements for the management of 
cultural resources on military installations. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2787 
Sec. 2863. Demonstration project for installation and operation of electric power 
distribution system at Youngstown Air Reserve Station, Ohio. 
Sec. 2864. Renovation of the Pentagon reservation. 
Sec. 2865. Plan for repairs and stabilization of the historic district at the Forest 
Glen Annex of Walter Reed Medicad Center, Maryland. 
Sec. 2866. Naming of range at Camp Shelby, Mississippi. 
Sec. 2867. Designation of Michael O'Callaghan military hospital. 
Sec. 2868. Naming of building at the Uniformed Services University of the Health 
Sciences. 
Subtitle A—Military Construction Program 
and Military Family Housing Changes 
SEC. 2801. INCREASE IN CERTAIN THRESHOLDS FOR UNSPECIFIED 
MINOR CONSTRUCTION PROJECTS. 
(a) O&M FUNDING FOR PROJECTS.—Section 2805(c)(1)(B) of title 
10, United States Code, is amended by striking out "$300,000" 
and inserting in lieu thereof "$500,000". 
(b) O&M FUNDING FOR RESERVE COMPONENT FACILITIES.—Sub-
section (b) of section 18233a of such title is amended by striking 
out "$300,000" and inserting in lieu thereof "$500,000". 
(c) NOTIFICATION FOR EXPENDITURES AND CONTRIBUTIONS FOR 
RESERVE COMPONENT FACILITIES.—Subsection (a)(1) of such section 
18233a is amended by striking out "$400,000" and inserting in 
lieu thereof "$1,500,000". 
SEC. 2802. REDESIGNATION OF NORTH ATLANTIC TREATY ORGANIZA-
TION INFRASTRUCTURE PROGRAM. 
(a) REDESIGNATION.—Subsection (b) of section 2806 of title 10, 
United States Code, is amended by striking out "North Atlantic 
Treaty Organization Infrastructure program" and inserting in lieu 
thereof "North Atlantic Treaty Organization Security Investment 
program". 
(b) REFERENCES.—^Any reference to the North Atlantic Treaty 
10 use 2806 
Organization Infrastructure program in any Federal law. Executive note. 
order, regulation, delegation of authority, or document of or pertain-
ing to the Department of Defense shall be deemed to refer to 
the North Atlantic Treaty Organization Security 
Investment 
program. 
(c) CLERICAL AMENDMENTS.—(1) The section heading of such 
section is amended to read as follows: 
"§2806. Contributions for North Atlantic Treaty Organiza-
tions Security Investment'*. 
(2) The table of sections at the beginning of subchapter I 
of chapter 169 of title 10, United States Code, is amended by 
striking out the item relating to section 2806 and inserting in 
lieu thereof the following new item: 
"2806. Contributions for North Atlantic Treaty Organizations Security Investment.". 
(d) CONFORMING AMENDMENTS.—(1) Section 2861(b)(3) of title 
10, United States Code, is amended by striking out "North Atlantic 
Treaty Organization Infrastructure program" and inserting in lieu 
thereof "North Atlantic Treaty Organization Security Investment 
program". 
(2) Section 21(h)(1)(B) of the Arms Export Control Act (22 
U.S.C. 2761(h)(1)(B)) is amended by striking out "North Atlantic 
Treaty Organization Infrastructure Program" and inserting in lieu 
29-194 O - 96 - 34 : QL 3 Part 3 
110 STAT. 2788 
PUBLIC LAW 104-201—SEPT. 23, 1996 
thereof "North Atlantic Treaty Organization Security Investment 
program". 
SEC. 2803. IMPROVEMENTS TO FAMILY HOUSING UNITS. 
(a) AUTHORIZED IMPROVEMENTS.—Subsection (a)(2) of section 
2825 of title 10, United States Code, is amended— 
(1) by inserting "major" before "maintenance"; and 
(2) by adding at the end the following: "Such term does 
not include day-to-day maintenance and repair work.". 
(b) LIMITATION.—Subsection (b) of such section is amended 
by striking out paragraph (2) and inserting in lieu thereof the 
following new paragraph: 
"(2) In determining the applicability of the limitation contained 
in paragraph (1), the Secretary concerned shall include as part 
of the cost of the improvement of the unit or units concerned 
the following: 
"(A) The cost of major maintenance or repair work under-
taken in connection with the improvement. 
"(B) Any cost, other than the cost of activities undertaken 
beyond a distance of five feet from the unit or units concerned, 
in connection with— 
"(i) the furnishing of electricity, gas, water, and sewage 
disposal; 
"(ii) the construction or repair of roads, drives, and 
walks; and 
"(iii) grading and drainage work.". 
SEC. 2804. AVAILABILITY OF FUNDS FOR PLANNING, EXECUTION, AND 
ADMINISTRATION OF CONTRACTS FOR FAMILY HOUSING 
AND UNACCOMPANIED HOUSING. 
(a) CONTRACTS FOR FAMILY HOUSING.—Paragraph (1) of section 
2883(d) of title 10, United States Code, is amended by adding 
at the end the following: 'The Secretary may also use for expenses 
of activities required in connection with the planning, execution, 
and administration of such contracts funds that are otherwise avail-
able to the Department of Defense for such types of expenses.". 
(b) CONTRACTS FOR UNACCOMPANIED HOUSING.—Paragraph (2) 
of such section is amended by adding at the end the following: 
"The Secretary may also use for expenses of activities required 
in connection with the planning, execution, and administration 
of such contracts funds that are otherwise available to the Depart-
ment of Defense for such types of expenses.". 
Subtitle B—Defense Base Closure and 
Realignment 
SEC. 2811. RESTORATION OF AUTHORITY FOR CERTAIN INTRA-
GOVERNMENT TRANSFERS UNDER 1988 BASE CLOSURE 
LAW. 
Section 204(b)(2) of the Defense Authorization Amendments 
and Base Closure and Realignment Act (Public Law 100-526; 10 
U.S.C. 2687 note), is amended— 
(1) by redesignating subparagraphs (D) and (E) as subpara-
graphs (E) and (F), respectively; and 
(2) by inserting after subparagraph (C) the following new 
subparagraph (D): 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2789 
"(D) The Secretary of Defense may transfer real property or 
facilities located at a military installation to be closed or realigned 
under this title, with or without reimbursement, to a military 
department or other entity (including a nonappropriated fund 
instrumentality) within the Department of Defense or the Coast 
Guard.". 
SEC. 2812. CONTRACTING FOR CERTAIN SERVICES AT FACILITIES 
REMAINING ON CLOSED INSTALLATIONS. 
(a) 1988 LAW.—Section 204(b)(8)(A) of the Defense Authoriza-
tion Amendments and Base Closure and Realignment Act (Public 
Law 100-526; 10 U.S.C. 2687 note) is amended by inserting ", 
or at facilities not yet transferred or otherwise disposed of in the 
case of installations closed under this title," after "under this title". 
(b) 1990 LAW.—Section 2905(b)(8XA) of the Defense Base Clo-
sure and Realignment Act of 1990 (part A of title XXIX of Public 
Law 101-510; 10 U.S.C. 2687 note) is amended by inserting ", 
or at facilities not yet transferred or otherwise disposed of in the 
case of installations closed under this part," after "under this part". 
SEC. 2813. AUTHORITY TO COMPENSATE OWNERS OF MANUFAC-
TURED HOUSING. 
(a) 1988 LAW.—Section 204 of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 
100-526; 10 U.S.C. 2687 note), is amended by adding at the end 
the following new subsection: 
"(f) ACQUISITION OF MANUFACTURED HOUSING.—(1) In closing 
or realigning any military installation under this title, the Secretary 
may purchase any or all right, title, £ind interest of a member 
of the Armed Forces and any spouse of the member in manufactured 
housing located at a manufactured housing park established at 
an installation closed or realigned under this title, or make a 
payment to the member to relocate the manufactured housing to 
a suitable new site, if the Secretary determines that— 
"(A) it is in the best interests of the Federal Gk)vemment 
to eliminate or relocate the manufactured housing park; and 
"(B) the elimination or relocation of the manufactured hous-
ing park would result in an unreasonable financial hardship 
to the owners of the manufactured housing. 
"(2) Any payment made under this subsection shall not exceed 
90 percent of the purchase price of the manufactured housing, 
as paid by the member or any spouse of the member, plus the 
cost of any permanent improvements subsequently made to the 
manufactured housing by the member or spouse of the member. 
"(3) The Secretary shall dispose of manufactured housing 
acquired under this subsection through resale, donation, trade or 
otherwise within one year of acquisition.". 
(b) 1990 LAW.—Section 2905 of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note), is amended by adding at the end 
the following new subsection: 
"(g) ACQUISITION OF MANUFACTURED HOUSING.—(1) In closing 
or realigning any military installation under this part, the Secretary 
may purchase any or all right, title, and interest of a member 
of the Armed Forces and any spouse of the member in manufactured 
housing located at a manufactured housing park established at 
an installation closed or realigned under this part, or make a 
110 STAT. 2790 
PUBLIC LAW 104-201—SEPT. 23, 1996 
payment to the member to relocate the manufactured housing to 
a suitable new site, if the Secretary determines that— 
"(A) it is in the best interests of the Federal Government 
to eliminate or relocate the msmufactured housing park; and 
"(B) the elimination or relocation of the manufactured hous-
ing park would result in an unreasonable financial hardship 
to the owners of the manufactured housing. 
"(2) Any payment made under this subsection shall not exceed 
90 percent of the purchase price of the manufactured housing, 
as paid by the member or any spouse of the member, plus the 
cost of any permanent improvements subsequently made to the 
manufactured housing by the member or spouse of the member. 
"(3) The Secretary shall dispose of manufactured housing 
acquired under this subsection through resale, donation, trade or 
otherwise within one year of acquisition.". 
SEC. 2814. ADDITIONAL PURPOSE FOR WHICH ADJUSTMENT AND 
DIVERSIFICATION ASSISTANCE IS AUTHORIZED. 
Section 2391(b)(5) of title 10, United States Code, is amended— 
(1) by inserting "(A)" after "(5)"; and 
(2) by adding at the end the following new subparagraph: 
"(B) The Secretary of Defense may also make grants, conclude 
cooperative agreements, and supplement other Federal funds in 
order to assist a State in enhgincing its capacities— 
"(i) to assist 
communities, businesses, and 
workers 
adversely affected by an action described in paragraph (1); 
"(ii) to support local adjustment and diversification initia-
tives; and 
"(iii) to stimulate cooperation between statewide and local 
adjustment and diversification efforts.". 
SEC. 2815. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER 
CERCLA IN CONNECTION WITH LORING AIR FORCE BASE, 
MAINE. 
From amounts in the Department of Defense Base Closure 
Account 1990 established by section 2906(a)(1) of the Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX of 
Public Law 101-510; 10 U.S.C. 2687 note), the Secretary of Defense 
may expend not more than $50,000 to pay stipulated civil penalties 
assessed under the Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) against 
Loring Air Force Base, Maine. 
SEC. 2816. PLAN FOR UTILIZATION, REUTILIZATION, OR DISPOSAL OF 
MISSISSIPPI ARMY AMMUNITION PLANT. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of the Army shall submit to the congressional 
defense committees a plan for the utilization, reutilization, or dis-
posal of the Mississippi Army Ammunition Plant, Hancock County, 
Mississippi. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2791 
Subtitle C—Land Conveyances 
PART I—ARMY CONVEYANCES 
SEC. 2821. TRANSFER OF LANDS, ARLINGTON NATIONAL CEMETERY, 
ARLINGTON, VIRGINIA. 
(a) REQUIREMENT FOR SECRETARY OF INTERIOR TO TRANSFER 
CERTAIN SECTION 29 LANDS.—(1) Subject to paragraph (2), the 
Secretary of the Interior shall transfer to the Secretary of the 
Army administrative jurisdiction over the following lands located 
in section 29 of the National Park System at Arlington National 
Cemetery, Virginia: 
(A) The lands known as the Arlington National Cemetery 
Interment Zone. 
(B) All lands in the Robert E. Lee Memorial Preservation 
Zone, other than those lands in the Preservation Zone that 
the Secretary of the Interior determines must be retained 
because of the historical significance of such lands or for the 
maintenance of nearby lands or facilities. 
(2)(A) The Secretary of the Interior may not make the transfer 
referred to in paragraph (1)(B) until 60 days after the date on 
which the Secretary submits to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives— 
(i) a summary of the document entitled "Cultural Land-
scape and Archaeological Study, Section 29, Arlington House, 
The Robert E. Lee Memorial"; 
(ii) a summary of any environmental analysis required 
with respect to the transfer under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.); 
(iii) an accounting of the effect of the transfer that satisfies 
the requirements of section 106 of the National Historic 
Preservation Act (16 U.S.C. 4700; and 
(iv) the proposal of the Secretary and the Secretary of 
the Army setting forth the lands to be transferred and the 
general manner in which the Secretary of the Army will develop 
such lands after transfer. 
(B) The Secretary of the Interior shall submit the information 
required under subparagraph (A) not later than October 31, 1997. 
(3) The transfer of lands under paragraph (1) shall be carried 
out in accordance with the Interagency Agreement Between the 
Department of the Interior, the National Park Service, and the 
Department of the Army, dated February 22, 1995. 
(4) The exact acreage and legal descriptions of the lands to 
be transferred under paragraph (1) shall be determined by surveys 
satisfactory to the Secretary of the Interior and the Secretary of 
the Army. 
(b) REQUIREMENT FOR ADDITIONAL TRANSFERS.—(1) The Sec-
retary of the Interior shall transfer to the Secretary of the Army 
administrative jurisdiction over a parcel of land, including any 
improvements thereon, consisting of approximately 2.43 acres, 
located in the Memorial Drive entrance area to Arlington National 
Cemetery. 
(2)(A) The Secretary of the Army shall transfer to the Secretary 
of the Interior administrative jurisdiction over a parcel of land, 
including any improvements thereon, consisting of approximately 
110 STAT. 2792 
PUBLIC LAW 104-201—SEPT. 23, 1996 
0.17 acres, located at Arlington National Cemetery, and known 
as the Old Administrative Building site. The site is part of the 
original reservation of Arlington National Cemetery. 
(B) In connection with the transfer under subparagraph (A), 
the Secretary of the Army shall grsint to the Secretary of the 
Interior a perpetual right of ingress and egress to the parcel trans-
ferred under that subparagraph. 
(3) The exact acreage and legal descriptions of the lands to 
be transferred pursuant to this subsection shall be determined 
by surveys satisfactory to the Secretary of the Interior and the 
Secretary of the Army. The costs of such surveys shall be borne 
by the Secretary of the Army. 
SEC. 2822. LAND TRANSFER, FORT SILL, OKLAHOMA. 
(a) TRANSFER OF LAND FOR NATIONAL CEMETERY.—^The Sec-
retary of the Army may transfer, without reimbursement, to the 
administrative jurisdiction of the Secretary of Veterans Affairs a 
parcel of real property, including any improvements thereon, con-
sisting of approximately 400 acres and comprising a portion of 
Fort Sill, Oklahoma. 
(b) USE OF PROPERTY.—^The Secretary of Veterans Affairs shall 
use the real property transferred under subsection (a) as a national 
cemetery under chapter 24 of title 38, United States Code. 
(c) RETURN OF UNUSED PORTION.—If the Secretary of Veterans 
Affairs determines that any portion of the real property transferred 
under subsection (a) is not needed for use as a national cemetery, 
the Secretary shall return such portion to the administrative juris-
diction of the Secretary of the Army. 
(d) LEGAL DESCRIPTION.—The exact acreage and legal descrip-
tion of the real property to be transferred under this section shall 
be determined by a survey satisfactory to the Secretary of the 
Army. The cost of the survey shall be borne by the Secretary 
of Veterans Affairs. 
SEC. 2823. LAND CONVEYANCE, ARMY RESERVE CENTER, RUSHVILLE, 
INDIANA. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 
convey, without consideration, to the City of Rushville, Indiana 
(in this section referred to as the "City"), all right, title, and interest 
of the United States in and to a parcel of excess real property, 
including improvements thereon, that is located in Rushville, 
Indiana, and contains the Rushville Army Reserve Center. 
(b) CONDITION OF CONVEYANCE.—^The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
City retain the conveyed property for the use and benefit of the 
Rushville Police Department. 
(c) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the City. 
:d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2793 
SEC. 2824. LAND CONVEYANCE, ARMY RESERVE CENTER, ANDERSON, 
SOUTH CAROLINA. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 
convey, without consideration, to the County of Anderson, South 
Carolina (in this section referred to as the "County"), all right, 
title, and interest of the United States in and to a parcel of real 
property, including improvements thereon, that is located at 805 
East Whitner Street in Anderson, South Carolina, and contains 
an Army Reserve Center. 
(b) CONDITION OF CONVEYANCE.—^The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
County retain the conveyed property for the use and benefit of 
the Anderson County Department of Education. 
(c) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the County. 
(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States. 
SEC. 2825. LAND CONVEYANCE, ARMY RESERVE CENTER, MONTPE-
LIER, VERMONT. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 
convey, without consideration, to the City of Montpelier, Vermont 
(in this section referred to as the "City"), all right, title, and interest 
of the United States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 4.3 acres and 
located on Route 2 in Montpelier, Vermont, the site of the Army 
Reserve Center, Montpelier, Vermont. 
(b) CONDITION.—The conveyance authorized under subsection 
(a) shall be subject to the condition that the City agree to lease 
to the Civil Air Patrol, at no rental charge to the Civil Air Patrol, 
the portion of the real property and improvements located on the 
parcel to be conveyed that the Civil Air Patrol leases from the 
Secretary as of the date of the enactment of this Act. 
(c) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the City. 
(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers appro-
priate to protect the interests of the United States. 
SEC. 2826. LAND CONVEYANCE, CRAFTS BROTHERS RESERVE TRAIN-
ING CENTER, MANCHESTER, NEW HAMPSHIRE. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 
convey, without consideration, to Saint Anselm College, Manchester, 
New Hampshire, all right, title, and interest of the United States 
in and to a parcel of real property, including improvements thereon, 
consisting of approximately 3.5 acres and located on Rockland 
Avenue in Manchester, New Hampshire, the site of the Crafts 
Brothers Reserve Training Center. 
(b) REQUIREMENT RELATING TO CONVEYANCE.—The Secretary 
may not make the conveyance authorized by subsection (a) until 
110 STAT. 2794 
PUBLIC LAW 104-201—SEPT. 23, 1996 
the Army Reserve units currently housed at the Crafts Brothers 
Reserve Training Center are relocated to the Joint Service Reserve 
Center to be constructed at the Manchester Airport, New Hamp-
shire. 
(c) REQUIREMENT FOR FEDERAL SCREENING OF PROPERTY.—The 
Secretary may not carry out the conveyance of property authorized 
by subsection (a) unless the Secretary determines that no depart-
ment or agency of the Federal Government will accept the transfer 
of the property. 
(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Secretary. 
(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers appro-
priate to protect the interests of the United States. 
SEC. 2827. LAND 
CONVEYANCE, 
PINE 
BLUFF 
ARSENAL, 
ARKANSAS. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 
convey, without consideration, to the Economic Development Alli-
ance of Jefferson County, Arkansas (in this section referred to 
as the "Alliance"), all right, title, and interest of the United States 
in and to a parcel of real property, together with any improvements 
thereon, consisting of approximately 1,500 acres and comprising 
a portion of the Pine Bluff Arsenal, Arkansas. 
(b) REQUIREMENTS RELATING TO CONVEYANCE.—The Secretary 
may not carry out the conveyance of property authorized under 
subsection (a) until— 
(1) the completion by the Secretary of any environmental 
restoration and remediation that is required with respect to 
the property under applicable law; 
(2) the Secretary secures all permits required under law 
applicable regarding the conduct of the proposed chemical 
demilitarization mission at the arsenal; and 
(3) the Secretary of Defense submits to the Committee 
on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a certification 
that the conveyance will not adversely affect the ability of 
the Department of Defense to conduct that chemical demili-
tarization mission. 
(c) CONDITIONS OF CONVEYANCE.—The conveyance authorized 
under subsection (a) shall be subject to the following conditions: 
(1) That the Alliance agree not to carry out any activities 
on the property to be conveyed that interfere with the construc-
tion, operation, and decommissioning of the chemical demili-
tarization facility to be constructed at Pine Bluff Arsenal. If 
the Alliance fails to comply with its agreement in paragraph 
(1) the property conveyed under this section, all rights, title, 
and interest in and to the property shall revert to the United 
States, and the United States shall have immediate rights 
of entry thereon. 
(2) That the property be used during the 25-year period 
beginning on the date of the conveyance only as the site of 
the facility known as the "Bioplex", and for activities related 
thereto. 
(d) COSTS OF CONVEYANCE.—^The Alliance shall be responsible 
for any costs of the Army associated with the conveyance of property 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2795 
under this section, including administrative costs, the costs of an 
environmental baseline survey with respect to the property, and 
the cost of any protection services required by the Secretary in 
order to secure operations of the chemical demilitarization facility 
from activities on the property after the conveyance. 
(e) REVERSIONARY INTERESTS.—If the Secretary determines at 
any time during the 25-year period referred to in subsection (c)(2) 
that the property conveyed under this section is not being used 
in accordance with that subsection, all right, title, and interest 
in and to the property shall revert to the United States, and 
the United States shall have immediate right of entry thereon. 
(f) SALE OF PROPERTY BY ALLIANCE.—If at any time during 
the 25-year period referred to in subsection (c)(2) the Alliance 
sells all or a portion of the property conveyed under this section, 
the Alliance shall pay the United States an amount equal to the 
lesser of— 
(1) the amount of the sale of the property sold; or 
(2) the fair market value of the property sold at the time 
of the sale, excluding the value of any improvements to the 
property sold that have been made by the Alliance. 
(g) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the property conveyed under this section shall be 
determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Alliance. 
(h) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in connection with 
conveyance under this section as the Secretary considers appro-
priate to protect the interests of the United States. 
SEC. 2828. REAFFIRMATION OF LAND CONVEYANCES, FORT SHERI-
DAN, ILLINOIS. 
As soon as practicable after the date of the enactment of this 
Act, the Secretary of the Army shall complete the land conveyances 
involving Fort Sheridan, Illinois, required or authorized under sec-
tion 125 of the Military Construction Appropriations Act, 1996 
(PubHc Law 104-32; 109 Stat. 290). 
PART n—NAVY CONVEYANCES 
SEC. 2831. LAND 
TRANSFER, 
POTOMAC 
ANNEX, 
DISTRICT 
OF 
COLUMBIA-
(a) TRANSFER AUTHORIZED.—^The Secretary of the Navy may 
transfer, without consideration other than the reimbursement pro-
vided for in subsection (d), to the United States Institute of Peace 
(in this section referred to as the "Institute") administrative jurisdic-
tion over a parcel of real property, including any improvements 
thereon, consisting of approximately 3 acres, at the northwest comer 
of Twenty-third Street and Constitution Avenue, Northwest, District 
of Columbia, the site of the Potomac Annex. 
(b) CONDITION.—^The Secretary may not make the transfer 
specified in subsection (a) unless the Institute agrees to provide 
the Navy a number of parking spaces at or in the vicinity of 
the headquarters to be constructed on the parcel transferred equal 
to the number of parking spaces available to the Navy on the 
parcel as of the date of the transfer. 
(c) REQUIREMENT RELATING TO TRANSFER.—The transfer speci-
fied in subsection (a) may not occur until the Institute obtains 
110 STAT. 2796 
PUBLIC LAW 104-201—SEPT. 23, 1996 
all permits, approvals, and site plan reviews required by law with 
respect to the construction on the parcel of a headquarters for 
operations of the Institute. 
(d) COSTS.—^The Institute shall reimburse the Secretary for 
the costs incurred by the Secretary in carrying out the transfer 
specified in subsection (a). 
(e) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the property to be transferred under subsection (a) 
shall be determined by a survey that is satisfactory to the Secretary. 
The cost of the survey shall be borne by the Institute. 
SEC. 2832. LAND EXCHANGE, ST. HELENA ANNEX, NORFOLK NAVAL 
SHIPYARD, VIRGINLA. 
(a) CONVEYANCE AUTHORIZED.—(1) The Secretary of the Navy 
may convey to such private person as the Secretary considers appro-
priate (in this section referred to as the "transferee") all right, 
title, and interest of the United States in and to a parcel of real 
property that is located at the Norfolk Naval Shipyard, Virginia, 
and, as of the date of the enactment of this Act, is a portion 
of the property leased to the Norfolk Shipbuilding and Drydock 
Company pursuant to the Department of the Navy lease N00024-
84-1^0004, effective October 1, 1984, as extended. 
(2) Pending completion of the conveyance authorized by para-
graph (1), the Secretary may lease the real property to the trans-
feree upon such terms as the Secretary considers appropriate. 
(b) CONSIDERATION.—^As consideration for the conveyance under 
subsection (a), including any interim lease authorized by such sub-
section, the transferee shall— 
(1) convey to the United States all right, title, and interest 
to a parcel or parcels of real property, together with any 
improvements thereon, located in the area of Portsmouth, 
Virginia, which are determined to be acceptable to the Sec-
retary; and 
(2) pay to the Secretary an amount equal to the amount, 
if any, by which the fair market value of the parcel conveyed 
by the Secretary under subsection (a) exceeds the fair market 
value of the parcel conveyed to the United States under para-
graph (1). 
(c) U S E OF RENTAL AMOUNTS.—^The Secretary may use the 
amounts received as rent from any lease entered into under the 
authority of subsection (a)(2) to fund environmental studies of the 
parcels of real property to be conveyed under this section. 
(d) IN-KIND CONSIDERATION.—^The Secretary and the transferee 
may agree that, in lieu of all or any part of the consideration 
required by subsection (b)(2), the transferee may provide and the 
Secretary may accept the improvement, maintenance, protection, 
repair, or restoration of real property under the control of the 
Secretary in the area of Hampton Roads, Virginia. 
(e) DETERMINATION OF FAIR MARKET VALUE AND PROPERTY 
DESCRIPTION.—The Secretary shall determine the fair market value 
of the parcels of real property to be conveyed under subsections 
(a) and (b)(1). The exact acreage and legal description of the parcels 
shall be determined by a survey satisfactory to the Secretary. The 
cost of the survey shall be borne by the transferee. 
(f) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in connection with 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2797 
the conveyances under this section as the Secretary considers appro-
priate to protect the interests of the United States. 
SEC. 2833. LAND CONVEYANCE, CALVERTON PINE BARRENS, NAVAL 
WEAPONS INDUSTRLVL RESERVE PLANT, CALVERTON, 
NEW YORK. 
(a) CONVEYANCE AUTHORIZED.—^The Secretary of the Navy may 
convey, without consideration, to the Department of Environmental 
Conservation of the State of New York (in this section referred 
to as the "Department"), all right, title, and interest of the United 
States in and to the Calverton Pine Barrens located at the Naval 
Weapons Industrial Reserve Plant, Calverton, New York. 
(b) EFFECT ON OTHER CONVEYANCE AUTHORITY.—^The convey-
ance authorized by this subsection shall not affect the transfer 
of jurisdiction of a portion of the Csdverton Pine Barrens authorized 
by section 2865 of the Military Construction Authorization Act 
for Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 
576). 
(c) CONDITION OF CONVEYANCE.—^The conveyance under sub-
section (a) shall be subject to the condition that the Department 
agrees— 
(1) to maintain the conveyed property as a nature preserve, 
as required by section 2854 of the Military Construction 
Authorization Act for Fiscal Year 1993 (division B of Public 
Law 102-484; 106 Stat. 2626), as amended by section 2823 
of the Military Construction Authorization Act for Fiscal Year 
1995 (division B of Public Law 103-337; 108 Stat. 3058); 
(2) to designate the conveyed property as the "Otis G. 
Pike Preserve"; and 
(3) to continue to allow the level of sporting activities 
on the conveyed property as permitted at the time of the 
conveyance. 
(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the Department. 
(e) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States. 
(0 CALVERTON PINE BARRENS DEFINED.—In this section, the 
term "Calverton Pine Barrens" has the meaning given that term 
in section 2854(d)(1) of the Military Construction Authorization 
Act for Fiscal Year 1993 (division B of Public Law 102-484; 106 
Stat. 2626). 
SEC. 2834. LAND CONVEYANCE, FORMER NAVAL RESERVE FACILITY, 
LEWES, DELAWARE. 
(a) CONVEYANCE AUTHORIZED.—^The Secretary of the Navy may 
convey, without consideration, to the State of Delaware (in this 
section referred to as the "State"), all right, title, and interest 
of the United States in and to a parcel of real property, including 
any improvements thereon, consisting of approximately 16.8 acres 
at the site of the former Naval Reserve Facility, Lewes, Delaware. 
(b) CONDITION OF CONVEYANCE.—^The conveyance under sub-
section (a) shall be subject to the condition that the State use 
the real property conveyed under that subsection in perpetuity 
solely for public park or recreational purposes. 
110 STAT. 2798 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(c) REVERSION.—If the Secretary of the Navy determines at 
any time that the real property conveyed pursuant to this section 
is not being used for a purpose specified in subsection (b), all 
right, title, and interest in and to such real property, including 
any improvements thereon, shall revert to the United States, and 
the United States shall have the right of immediate entry thereon. 
(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of the real property to be conveyed pursuant to this 
section shall be determined by a survey satisfactory to the Secretary 
of the Navy. The cost of such survey shall be borne by the State. 
(e) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary of the 
Navy may require such additional terms and conditions in connec-
tion with the conveyance under this section as the Secretary consid-
ers appropriate to protect the interests of the United States. 
SEC. 2835. MODIFICATION OF LAND CONVEYANCE AUTHORITY, NAVAL 
RESERVE CENTER, SEATTLE, WASHINGTON. 
Paragraph (2) of section 127(d) of the Military Construction 
Appropriations Act, 1995 (Public Law 103-307; 108 Stat. 1666), 
is amended to read as follows: 
"(2) Before commencing construction of a facility to be the 
replacement facility for the Naval Reserve Center under paragraph 
(1), the Secretary shall comply with the requirements of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) with respect to such facility.". 
SEC. 2836. RELEASE OF CONDITION ON RECONVEYANCE OF TRANS-
FERRED LAND, GUAM. 
(a) IN GENERAL.—Section 818(b)(2) of the Military Construction 
Authorization Act, 1981 (Public Law 96-418; 94 Stat. 1782), relating 
to a condition on disposal by Guam of lands conveyed to Guam 
by the United States, shall have no force or effect and is repealed. 
(b) EXECUTION OF INSTRUMENTS.—^The Secretary of the Navy 
and the Administrator of General Services shall execute all 
instruments necessary to implement this section. 
SEC. 2837. LEASE TO FACILITATE 
CONSTRUCTION 
OF RESERVE 
CENTER, NAVAL AIR STATION, MERIDIAN, MISSISSIPPI. 
(a) LEASE OF PROPERTY FOR CONSTRUCTION OF RESERVE 
CENTER.—(1) The Secretary of the Navy may lease, without 
reimbursement, to the State of Mississippi (in this section referred 
to as the "State"), approximately five acres of real property located 
at Naval Air Station, Meridian, Mississippi. The State shall use 
the property to construct a reserve center of approximately 22,000 
square feet and ancillary supporting facilities. 
(2) The term of the lease under this subsection shall expire 
on the same date that the lease authorized by subsection (b) expires. 
(b) LEASEBACK OF RESERVE CENTER.—(1) The Secretary may 
lease from the State the property and improvements constructed 
pursuant to subsection (a) for a five-year period. The term of the 
lease shall begin on the date on which the improvements are 
available for occupancy, as determined by the Secretary. 
(2) Rental payments under the lease under paragraph (1) may 
not exceed $200,000 per year, and the total amount of the rental 
payments for the entire period may not exceed 20 percent of the 
total cost of constructing the reserve center and ancillary supporting 
facilities. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2799 
(3) Subject to the availability of appropriations for this purpose, 
the Secretary may use funds appropriated pursuant to an authoriza-
tion of appropriations for the operation and maintenance of the 
Naval Reserve to make rental payments required under this 
subsection. 
(c) EFFECT OF TERMINATION OF LEASES.—^At the end of the 
lease term under subsection (b), the State shall convey, without 
reimbursement, to the United States all right, title, and interest 
of the State in the reserve center and ancillary supporting facilities 
subject to the lease. 
(d) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in connection with 
the leases under this section as the Secretary considers appropriate 
to protect the interests of the United States. 
PART in—AIR FORCE CONVEYANCES 
SEC. 2841. LAND CONVEYANCE, RADAR BOMB SCORING SITE, BELLE 
FOURCHE, SOUTH DAKOTA-
(a) CONVEYANCE AUTHORIZED.—^The Secretary of the Air Force 
may convey, without consideration, to the Belle Fourche School 
District, Belle Fourche, South Dakota (in this section referred to 
as the "District"), all right, title, and interest of the United States 
in and to a parcel of real property, together with any improvements 
thereon, consisting of approximately 37 acres located in Belle 
Fourche, South Dakota, which has served as the location of a 
support complex and housing facilities for Detachment 21 of the 
554th Range Squadron, an Air Force Radar Bomb Scoring Site 
located in Belle Fourche, South Dakota. The conveyance may not 
include any portion of the radar bomb scoring site located in the 
State of Wyoming. 
(b) CONDITION OF CONVEYANCE.—^The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
District— 
(1) use the property and facilities conveyed under such 
subsection for education, economic development, and housing 
purposes; or 
(2) enter into an agreement with an appropriate public 
or private entity to sell or lease the property and facilities 
to such entity for such purposes. 
(c) DESCRIPTION OF PROPERTY.—^The exact acreage and legsil 
description of the property conveyed under this section shall be 
determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the District. 
(d) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers appro-
priate to protect the interests of the United States. 
SEC. 2842. CONVEYANCE OF PRIMATE RESEARCH COMPLEX AND AIR 
FORCE-OWNED CHIMPANZEES, HOLLOMAN AIR FORCE 
BASE, NEW MEXICO. 
(a) DISPOSAL AUTHORIZED.—Notwithstanding any provision of 
the Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 471 et seq.), or any regulations prescribed thereunder, the 
Secretary of the Air Force may dispose of all right, title, and 
interest of the United States in and to the primate research complex 
110 STAT. 2800 
PUBLIC LAW 104-201—SEPT. 23, 1996 
at Holloman Air Force Base, New Mexico. The disposal may include 
the chimpanzees owned by the Air Force that are housed at or 
managed from the primate research complex, llie disposal shall 
not include the underljdng real property on which the primate 
research complex is located. The disposal of the primate research 
complex shall be at no cost to the Air Force. 
(b) COMPETITIVE, NEGOTIATED DISPOSAL PROCESS REQUIRED.— 
The Secretary shall select the persons or entities to which the 
primate research complex and chimpanzees are to be disposed of 
under subsection (a) using a competitive, negotiated process. 
(c) STANDARDS T O B E USED IN SOLICITATION OF BIDS.—^The 
Secretary shall develop standards for the care and use of the 
primate research complex, and of the chimpanzees, to be used 
in soliciting bids for the disposal authorized by subsection (a). 
The Secretary shall develop such standards in consultation with 
the Secretary of Agriculture and the Director of the National 
Institutes of Health. 
(d) CONDITIONS OF DISPOSAL.—^The disposal authorized by sub-
section (a) shall be subject to the foUowings conditions: 
(1) That a recipient of any chimpanzees— 
(A) utilize such chimpanzees only for scientific research 
or medical research purposes; or 
(B) retire and provide adequate care for such chim-
panzees. 
(2) That any recipient of chimpanzees, or the primate 
research complex, take such chimpanzees, or the primate 
research complex, subject to any existing leases or other encum-
brances at the time of the disposal. 
(e) DESCRIPTION OF COMPLEX AND CHIMPANZEES.—^The exact 
legal description of the primate research complex and chimpanzees 
to be disposed of under subsection (a) shall be determined by 
a survey or other means satisfactory to the Secretary. The cost 
of any survey or other services performed at the direction of the 
Secretary under the authority in the preceding sentence shall be 
borne by the recipient of the property concerned. 
(f) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in connection with 
the disposal under subsection (a) as the Secretary considers appro-
priate to protect the interests of the United States. 
PART IV—OTHER CONVEYANCES 
SEC. 2851. LAND CONVEYANCE, TATUM SALT DOME TEST SITE, 
MISSISSIPPL 
(a) CONVEYANCE AUTHORIZED.—^The Secretary of Energy may 
convey, without compensation, to the State of Mississippi (in this 
section referred to as the "State") the property known as the Tatum 
Salt Dome Test Site, as generally depicted on the map of the 
Department of Energy numbered 301913.104.02 and dated June 
25, 1993. 
(b) CONDITION ON CONVEYANCE.—^The conveyance under this 
section shall be subject to the condition that the State use the 
conveyed property as a wildlife refuge and working demonstration 
forest. 
(c) DESIGNATION.—^The property to be conveyed is hereby des-
ignated as the "Jamie Whitten Forest Management Area". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2801 
(d) RETAINED RIGHTS.—^The conveyance under this section shall 
be subject to each of the following rights to be retained by the 
United States: 
(1) Retention by the United States of subsurface estates 
below the property conveyed. 
(2) Retention by the United States of rights of access, 
by easement or otherwise, for such purposes as the Secretary 
considers appropriate, including access to monitoring wells for 
sampling. 
(3) Retention by the United States of the right to install 
wells additional to those identified in the remediation plan 
for the property to the extent such additional wells are consid-
ered necessary by the Secretary to monitor potential pathways 
of contaminant migration. Such wells shall be in such locations 
as specified by the Secretary. 
(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers appro-
priate to protect the interests of the United States. 
SEC. 2852. LAND CONVEYANCE, WILLIAM LANGER JEWEL BEARING 
PLANT, ROLLA, NORTH DAKOTA-
(a) CONVEYANCE AUTHORIZED.—The Administrator of General 
Services may convey, without consideration, to the Job Development 
Authority of the City of Rolla, North Dakota (in this section referred 
to as the "Authority"), all right, title, and interest of the United 
States in and to a parcel of real property, with improvements 
thereon and all associated personal property, consisting of approxi-
mately 9.77 acres and comprising the William Langer Jewel Bearing 
Plant in Rolla, North Dakota. 
(b) CONDITION OF CONVEYANCE.—^The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
Authority— 
(1) use the real and personal property and improvements 
conveyed under that subsection for economic development relat-
ing to the jewel bearing plant; 
(2) enter into an agreement with an appropriate public 
or private entity or person to lease such property and 
improvements to that entity or person for such economic devel-
opment; or 
(3) enter into an agreement with an appropriate public 
or private entity or person to sell such property and improve-
ments to that entity or person for such economic development. 
(c) PREFERENCE FOR DOMESTIC DISPOSAL OF JEWEL BEARINGS.— 
(1) In offering to enter into agreements pursuant to any provision 
President. 
of law for the disposal of jewel bearings from the National Defense 
Stockpile, the President shall give a right of first refusal on all 
such offers to the Authority or to the appropriate public or private 
entity or person with which the Authority enters into an agreement 
under subsection (b). 
(2) For the purposes of this section, the term "National Defense 
Stockpile" means the stockpile provided for in section 4 of the 
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98(c)). 
(d) AVAILABILITY OF FUNDS FOR MAINTENANCE AND CONVEY-
ANCE OF PLANT.—Notwithstanding any other provision of law, funds 
available under the Department of Defense Appropriations Act, 
1995 (Public Law 103-335), in fiscal year 1995 for the maintenance 
110 STAT. 2802 
PUBLIC LAW 104-201—SEPT. 23, 1996 
of the William Longer Jewel Bearing Pl£int shall be available for 
the maintenance of the plant pending the conveyance of the plant 
and for the conveyance of the plant under this section. 
(e) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the property conveyed under this section shall be 
determined by a survey satisfactory to the Administrator. The cost 
of the survey shall be borne by the Administrator. 
(f) ADDITIONAL TERMS AND CONDITIONS.—^The Administrator 
may require such additionsd terms and conditions in connection 
with the conveyance under this section as the Administrator deter-
mines appropriate to protect the interests of the United States. 
SEC. 2853. LAND CONVEYANCE, AIR FORCE PLANT NO. 85, COLUMBUS, 
omo. 
(a) CONVEYANCE AUTHORIZED.—^Notwithstanding any other 
provision of law, the Secretary of the Air Force may instruct the 
Administrator of General Services to convey, without consideration, 
to the Columbus Municipal Airport Authority (in this section 
referred to as the "Authority") all right, title, and interest of the 
United States in and to a parcel of real property, together with 
improvements thereon, at Air Force Plant No. 85, Columbus, Ohio, 
consisting of approximately 240 acres that— 
(1) contains the land and buildings referred to as the "air-
port parcel" in the correspondence from the General Services 
Administration to the Authority dated April 30, 1996; and 
(2) is located adjacent to the Port Columbus International 
Airport. 
(b) EFFECT OF CHANGE IN ADMINISTRATIVE JURISDICTION.—If, 
on the date of the enactment of this Act, the Secretary of the 
Air Force does not have administrative jurisdiction over the prop-
erty to be conveyed, the conveyance shall be made by the Federal 
official who has administrative jurisdiction over the parcel as of 
that date. 
(c) REQUIREMENT FOR FEDERAL SCREENING.—^The Federal offi-
cial responsible for making the conveyance authorized in subsection 
(a) may not convey the property unless the Federal official deter-
mines, in consultation with the Administrator of General Services, 
that no department or agency of the Federal Grovemment will 
accept the transfer of the property. 
(d) CONDITION OF CONVEYANCE.—^The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
Authority use the conveyed property for public airport purposes. 
(e) REVERSION.—^If the Federal official making the conveyance 
under subsection (a) determines that any portion of the conveyed 
property is not being utilized in accordance with the condition 
in subsection (d), all right, title, and interest in and to such portion 
shall revert to the United States, and the United States shall 
have immediate right of entry thereon. 
(f) DESCRIPTION OF PROPERTY.—^The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Federal 
official responsible for making the conveyance. The cost of the 
survey shall be borne by the Authority. 
(g) ADDITIONAL TERMS AND CONDITIONS.—The Federal official 
responsible for making the conveyance of property under subsection 
(a) may require such additional terms gmd conditions in connection 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2803 
with the conveyance as such official considers appropriate to protect 
the interests of the United States. 
SEC. 2854. MODIFICATION 
OF 
BOUNDARIES 
OF 
WHITE 
SANDS 
16 USC 431 note. 
NATIONAL MONUMENT AND WHITE SANDS MISSILE 
RANGE. 
(a) TRANSFER OF LANDS BY SECRETARY OF ARMY.—The Sec-
retary of the Army may transfer to the administrative jurisdiction 
of the Secretary of the Interior the following lands as generally 
depicted on the map entitled "White Sands National Monument, 
Boundary Proposal", numbered 142/80,061, and dated January 
1994: 
(1) Lands consisting of approximately 2,524 acres located 
within White Sands National Monument, New Mexico. 
(2) Lands consisting of approximately 5,758 acres located 
within White Sands Missile Range, New Mexico, and abutting 
White Sands National Monument. 
(b) TRANSFER OF LANDS BY SECRETARY OF INTERIOR.—The Sec-
retary of the Interior may transfer to the administrative jurisdiction 
of the Secretary of the Army lands consisting of approximately 
4,277 acres located in White Sands National Monument, which 
lands are generally depicted on the map referred to in subsection 
(a). 
(c) BOUNDARY MODIFICATIONS.—(1) The Secretary of the Army 
and the Secretary of the Interior shall jointly modify the boundary 
of White Sands National Monument so as to include within the 
national monument the lands transferred under subsection (a) and 
to exclude from the national monument the lands transferred under 
subsection (b). 
(2) The Secretary of the Army and the Secretary of the Interior 
shall jointly modify the boundary of White Sands Missile Range 
as to include within the missile range the lands transferred under 
subsection (b) and exclude from the missile range the lands trans-
ferred under subsection (a). 
(d) ADMINISTRATION OF TRANSFERRED LANDS.—(1) The Sec-
retary of the Interior shall administer the lands transferred to 
that Secretary under subsection (a) in accordance with the laws 
applicable to the White Sands National Monument. 
(2) The Secretary of the Army shall administer the lands trans-
ferred to that Secretary under subsection (b) as part of White 
Sands Missile Range. 
(3) The Secretary of the Army shall maintain control of the 
airspace above the lands transferred to that Secretary under sub-
section (b) and administer that airspace in a manner consistent 
with the use of such lands as part of White Sands Missile Range. 
(e) PUBLIC AVAILABILITY OF MAP OF MONUMENT.—The Sec-
retary of the Interior and the Secretary of the Army shall jointly 
prepare, and the Secretary of the Interior shall keep on file for 
public inspection in the headquarters of White Sands National 
Monument, a map showing the boundary of White Sands National 
Monument as modified by this section. 
(0 WAIVER OF LIMITATION UNDER PRIOR LAW.—Notwithstand-
ing section 303(b)(1) of the National Parks and Recreation Act 
of 1978 (Public Law 95-625; 92 Stat. 3476), land or an interest 
in land that was deleted from White Sands National Monument 
by section 301(19) of the Act (92 Stat. 3475) may, at the election 
of the Secretary of the Interior, be— 
110 STAT. 2804 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(1) exchanged for land owned by the State of New Mexico 
within the boundaries of any unit of the National Park System 
in the State of New Mexico; 
(2) transferred to the jurisdiction of any other Federal 
agency without monetary consideration; or 
(3) administered as public land. 
Subtitle D—Other Matters 
SEC. 2861. AUTHORITY TO GRANT EASEMENTS FOR RIGHTS-OF-WAY. 
(a) EASEMENTS FOR ELECTRIC POLES AND LINES AND FOR 
COMMUNICATIONS LINES AND FACILITIES.—Section 2668(a) of title 
10, United States Code, is amended— 
(1) by striking out "and" at the end of paragraph (9); 
(2) by redesignating 
paragraph 
(10) as 
paragraph 
(13); and 
(3) by inserting after paragraph (9) the following new 
paragraphs: 
"(10) poles and lines for the transmission or distribution 
of electric power; 
"(11) poles and lines for the transmission or distribution 
of communications signals (including telephone and telegraph 
signals); 
"(12) structures and facilities for the transmission, recep-
tion, and relay of such signals; and". 
(b) 
CONFORMING 
AMENDMENTS.—Such 
section 
is 
further 
amended— 
(1) in paragraph (3), by striking out ", telephone lines, 
and telegraph lines,"; and 
(2) in paragraph (13), as redesignated by subsection (a)(2), 
by striking out "or by the Act of March 4, 1911 (43 U.S.C. 
961)". 
SEC. 2862. AUTHORITY TO ENTER INTO COOPERATIVE AGREEMENTS 
FOR THE MANAGEMENT OF CULTURAL RESOURCES ON 
MILITARY INSTALLATIONS. 
(a) AGREEMENTS AUTHORIZED.—Chapter 159 of title 10, United 
States Code, is amended by inserting after section 2683 the follow-
ing new section: 
**^ 2684. Cooperative agreements for management of cultural 
resources 
"(a) AUTHORITY.—The Secretary of Defense or the Secretary 
of a military department may enter into a cooperative agreement 
with a State or local government or other entity for the preservation, 
management, maintenance, and improvement of cultural resources 
on military installations and for the conduct of research regarding 
the cultural resources. Activities under the cooperative agreement 
shall be subject to the availability of funds to carry out the coopera-
tive agreement. 
"(b) APPLICATION OF OTHER LAWS.—Section 1535 and chapter 
63 of title 31, United States Code, shall not apply to a cooperative 
agreement entered into under this section. 
"(c) CULTURAL RESOURCE DEFINED.—In this section, the term 
'cultural resource' means any of the following: 
"(1) A building, structure, site, district, or object eligible 
for or included in the National Register of Historic Places 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2805 
maintained under section 101(a) of the National Historic 
Preservation Act (16 U.S.C. 470a(a)). 
"(2) Cultural items, as that term is defined in section 
2(3) of the Native American Graves Protection and Repatriation 
Act (25 U.S.C. 3001(3)). 
"(3) An archaeological resource, as that term is defined 
in section 3(1) of the Archaeological Resources Protection Act 
of 1979 (16 U.S.C. 470bb(l)). 
"(4) An archaeological artifact collection and associated 
records covered by section 79 of title 36, Code of Federal 
Regulations.". 
(b) CLERICAL AMENDMENT.—^The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating 
to section 2683 the following new item: 
"2684. Cooperative agreements for management of cultural resources.". 
SEC. 2863. DEMONSTRATION PROJECT FOR INSTALLATION AND OPER-
ATION OF ELECTRIC POWER DISTRIBUTION SYSTEM AT 
YOUNGSTOWN AIR RESERVE STATION, OfflO. 
(a) AUTHORITY.—^The Secretary of the Air Force may carry 
out a demonstration project to assess the feasibility and advisability 
of permitting private entities to install, operate, and maintain 
electric power distribution systems at military installations. The 
Secretary shall carry out the demonstration project through an 
agreement under subsection (b). 
(b) AGREEMENT.—(1) In order to carry out the demonstration 
project, the Secretary shall enter into an agreement with an electric 
utility or other company in the Youngstown, Ohio, area, consistent 
with State law, under which the utility or company installs, oper-
ates, and maintains (in a manner satisfactory to the Secretary 
and the utility or company) an electric power distribution system 
at Youngstown Air Reserve Station, Ohio. 
(2) The Secretary may not enter into an agreement under 
this subsection until— 
(A) the Secretary submits to Congress a report on the Reports, 
agreement to be entered into, including the costs to be incurred 
by the United States under the agreement; and 
(B) a period of 30 days has elapsed from the date of 
the receipt of the report by the committees. 
(c) LICENSES AND EASEMENTS.—In order to facilitate the 
installation, operation, and maintenance of the electric power dis-
tribution system under the agreement under subsection (b), the 
Secretary may grant the utility or company with which the Sec-
retary enters into the agreement such licenses, easements, and 
rights-of-way, consistent with State law, as the Secretary and the 
utility or company jointly determine necessary for such purposes. 
(d) OWNERSHIP OF SYSTEM.—^The agreement between the Sec-
retary and the utility or company under subsection (b) may provide 
that the utility or company shall own the electric power distribution 
system installed under the agreement. 
(e) RATE.—^The rate charged by the utility or company for 
providing or distributing electric power at Youngstown Air Reserve 
Station through the electric power distribution system installed 
under the agreement under subsection (b) shall be the rate estab-
lished by the appropriate Federal or State regulatory authority. 
(f) REPORTS.—^Not later than February 1, 1997, and February 
1 of each year following a year in which the Secretary carries 
110 STAT. 2806 
PUBLIC LAW 104-201—SEPT. 23, 1996 
out the demonstration project under this section, the Secretary 
shall submit to Congress a report on the project. The report shall 
include the Secretary's current assessment of the project and the 
recommendations, if any, of the Secretary of extending the authority 
with respect to the project to other facilities and installations of 
the Department of Defense. 
(g) FUNDING.—In order to pay the costs of the United States 
under the agreement under subsection (b), the Secretary may use 
funds authorized to be appropriated by section 2601(3)(B) of the 
Military Construction Authorization Act for Fiscal Year 1996 (divi-
sion B of Public Law 104-106; 110 Stat. 540) for the purpose 
of rebuilding the electric power distribution system at the Youngs-
town Air Reserve Station that were appropriated for that purpose 
by the Military Construction Appropriations Act, 1996 (Public Law 
104-32; 109 Stat. 283), and that remain available for obligation 
for that purpose as of the date of the enactment of this Act. 
(h) APPLICATION OF OTHER LAW.—^Nothing in this section shall 
authorize actions which are inconsistent with Federal or State 
law. 
(i) ADDITIONAL TERMS AND CONDITIONS.—^The Secretary may 
require such additional terms and conditions in the agreement 
under subsection (b) as the Secretary considers appropriate to pro-
tect the interests of the United States. 
SEC. 2864. RENOVATION OF THE PENTAGON RESERVATION. 
The Secretary of Defense shall take such actions as are nec-
essary to ensure that the total cost of the renovation of the Pentagon 
Reservation does not exceed $1,118,000,000. 
SEC. 2865. PLAN FOR REPAIRS AND STABILIZATION OF THE HISTORIC 
DISTRICT AT THE FOREST GLEN ANNEX OF WALTER REED 
MEDICAL CENTER, MARYLAND. 
Not later than 120 days after the date of the enactment of 
this Act, the Secretary of the Army shall submit to the congressional 
defense committees a comprehensive plan for basic repairs and 
stabilization measures throughout the historic district at the Forest 
Glen Annex of Walter Reed Army Medical Center, Maryland, 
together with funding options for the implementation of the plan. 
SEC. 2866. NAMING OF RANGE AT CAMP SHELBY, MISSISSIPPI. 
(a) NAME.—^The Multi Purpose Range Complex (Heavy) at 
Camp Shelby, Mississippi, shall after the date of the enactment 
of this Act be known and designated as the "G.V. (Sonny) Montgom-
ery Range". Any reference to such range in any law, regulation, 
map, document, record, or other paper of the United States shall 
be considered to be a reference to the G. V. (Sonny) Montgomery 
Range. 
(b) EFFECTIVE DATE.—Subsection (a) shall take effect at noon 
on January 3, 1997, or the first day on which G. V. (Sonny) 
Montgomery otherwise ceases to be a Member of the House of 
Representatives. 
Nevada. 
SEC. 2867. DESIGNATION 
OF MICHAEL 
O'CALLAGHAN 
MILITARY 
HOSPITAL. 
(a) DESIGNATION.—The Nellis Federal Hospital, a Federal build-
ing located at 4700 North Las Vegas Boulevard, Las Vegas, Nevada, 
shall be known and designated as the "Michael O'Callaghan Mili-
tary Hospital". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2807 
(b) REFERENCES.—Any reference in a law, map, regulation, 
document, paper, or other record of the United States to the Federal 
building referred to in subsection (a) shall be deemed to be a 
reference to the "Michael O'Callaghan Military Hospital". 
SEC. 2868. NAMING OF BUILDING AT THE UNIFORMED SERVICES 
UNIVERSITY OF THE HEALTH SCIENCES. 
It is the sense of Congress that the Secretary of Defense should 
name Building A at the Uniformed Services University of the Health 
Sciences as the "David Packard Building". 
TITLE XXK—MILITARY LAND 
WITHDRAWALS 
Subtitle A—^Fort Carson-Pinon Canyon Military Lands Withdrawal 
Sec. 2901. Short title. 
Sec. 2902. Withdrawal and reservation of lands at Fort Carson Military Reserva-
tion. 
Sec. 2903. Withdrawal and reservation of lands at Pinon Canyon Maneuver Site. 
Sec. 2904. Maps and legal descriptions. 
Sec. 2905. Management of withdrawn lands. 
Sec. 2906. Management of withdrawn and acquired mineral resources. 
Sec. 2907. Hunting, fishing, and trapping. 
Sec. 2908. Termination of withdrawm and reservation. 
Sec. 2909. Determination of presence of contamination and effect of contamination. 
Sec. 2910. Delegation. 
Sec. 2911. Hold harmless. 
Sec. 2912. Amendment to Military Lands Withdrawal Act of 1986. 
Sec. 2913. Authorization of appropriations. 
Subtitle B—El Centro Naval Air Facility Ranges Withdrawal 
Sec. 2921. Short title and definitions. 
Sec. 2922. Withdrawal and reservation of lands for El Centro. 
Sec. 2923. Maps and legal descriptions. 
Sec. 2924. Management of withdrawn lands. 
Sec. 2925. Duration of withdrawal and reservation. 
Sec. 2926. Continuation of ongoing decontamination activities. 
Sec. 2927. Requirements for extension. 
Sec. 2928. Early relinquishment of withdrawal. 
Sec. 2929. Delegation of authority. 
Sec. 2930. Hunting, fishing, and trapping. 
Sec. 2931. Hold harmless. 
Subtitle A—Fort Carson-Pinon Canyon 
Military Lands Withdrawal 
SEC. 2901. SHORT TITLE. 
This subtitle may be cited as the "Fort Carson-Pinon Canyon 
Military Lands Withdrawal Act". 
SEC. 2902. WITHDRAWAL AND RESERVATION OF LANDS AT FORT 
CARSON MIUTARY RESERVATION. 
(a) WITHDRAWAL.—Subject to valid existing rights and except 
as otherwise provided in this subtitle, the lands at the Fort Carson 
Military Reservation, Colorado, that are described in subsection 
(c) are hereby withdrawn from all forms of appropriation under 
the public land laws, including the mining laws, the mineral and 
geotnermal leasing laws, and the mineral materials disposal laws. 
(b) RESERVATION.—^The lands withdrawn under subsection (a) 
are reserved for use by the Secretary of the Army— 
Fort Carson-
Pinon Canyon 
Military Lands 
Withdrawal Act. 
110 STAT. 2808 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(1) for military maneuvering, training and weapons 
firing; and 
(2) for other defense related purposes consistent with the 
uses specified in paragraph (1). 
(c) LAJ^D DESCRIPTION.—^The lands referred to in subsection 
(a) comprise 3,133.02 acres of public land and 11,415.16 acres 
of federally-owned minerals in El Paso, Pueblo, and Fremont Coun-
ties, Colorado, as generally depicted on the map entitled "Fort 
Carson Proposed Withdrawal—Fort Carson Base", dated February 
6, 1992, and published in accordance with section 2904. 
SEC. 2903. WITHDRAWAL AND RESERVATION OF LANDS AT PINON 
CANYON MANEUVER SITE. 
(a) WITHDRAWAL.—Subject to valid existing rights and except 
as otherwise provided in this subtitle, the lands at the Pinon 
Canyon Maneuver Site, Colorado, that are described in subsection 
(c) are hereby withdrawn from all forms of appropriation under 
the public land laws, including the mining laws, the mineral and 
geothermal leasing laws, and the mineral materials disposal laws. 
(b) RESERVATION.—^The lands withdrawn under subsection (a) 
are reserved for use by the Secretary of the Army— 
(1) for military maneuvering and training; and 
(2) for other defense related purposes consistent with the 
uses specified in paragraph (1). 
(c) LAND DESCRIPTION.—^The lands referred to in subsection 
(a) comprise 2,517.12 acres of public lands and 130,139 acres of 
federally-owned minerals in Las Animas County, Colorado, as gen-
erally depicted on the map entitled "Fort Carson Proposed With-
drawal—Fort Carson Maneuver Area—Pinon Canyon site", dated 
February 6, 1992, and published in accordance with section 2904. 
SEC. 2904. MAPS AND LEGAL DESCRIPTIONS. 
Federal Register, 
(a) PREPARATION OF MAPS AND LEGAL DESCRIPTION.—-As SOOn 
publication. 
as practicable after the date of the enactment of this subtitle, 
the Secretary of the Interior shall prepare maps depicting the 
lands withdrawn and reserved by this subtitle and publish in the 
Federal Register a notice containing the legal description of such 
lands. 
(b) LEGAL EFFECT.—Such maps and legal descriptions shall 
have the same force and effect as if they were included in this 
subtitle, except that the Secretary of the Interior may correct cleri-
cal and typographical errors in such maps and legal descriptions. 
(c) AVAILABILITY OF MAPS AND LEGAL DESCRIPTION.—Copies 
of such maps and legal descriptions shall be available for public 
inspection in the offices of the Colorado State Director and the 
Canon City District Manager of the Bureau of Land Management 
and in the offices of the Commander of Fort Carson, Colorado. 
(d) COSTS.—^The Secretary of the Army shall reimburse the 
Secretary of the Interior for the costs of implementing this section. 
SEC. 2905. MANAGEMENT OF WITHDRAWN LANDS. 
(a) MANAGEMENT GUIDELINES.— 
(1) MANAGEMENT BY SECRETARY OF THE ARMY.—Except as 
provided in section 2906, during the period of withdrawal, 
the Secretary of the Army shall manage for military pur-
poses the lands covered by this subtitle and may authorize 
use of the lands by the other military departments and agencies 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2809 
of the Department of Defense, and the National Guard, as 
appropriate. 
(2) ACCESS RESTRICTIONS.—^When mihtary operations, pub-
He safety, or national security, as determined by the Secretary 
of the Army, require the closure of roads and trails on the 
lands withdrawn by this subtitle commonly in public use, the 
Secretary of the Army is authorized to take such action, except 
that such closures shall be limited to the minimum areas and 
periods required for the purposes specified in this subsection. 
Appropriate warning notices shall be kept posted during clo-
sures. 
(3) SUPPRESSION OF FIRES.—^The Secretary of the Army 
shall take necessary precautions to prevent and suppress brush 
and range fires occurring within and outside the lands as 
a result of military activities and may seek assistance from 
the Bureau of Land Management in suppressing such fires. 
The memorandum of understanding required by this section 
shall provide for Bureau of Land Msmagement assistance in 
the suppression of such fires, and for a transfer of funds from 
the Department of the Army to the Bureau of Land Manage-
ment as compensation for such assistance. 
(b) MANAGEMENT PLAN.— 
(1) DEVELOPMENT REQUIRED.—^The Secretary of the Army, 
with the concurrence of the Secretary of the Interior, shall 
develop a plan for the management of acquired lands and 
lands withdrawn under sections 2902 and 2903 for the period 
of withdrawal. The plan shall— 
(A) be consistent with applicable law; 
(B) include such provisions as may be necessary for 
proper resource management and protection of the natural, 
cultural, and other resources and values of such lands; 
and 
(C) identify those withdrawn and acquired lands, if 
any, which are to be open to mining or mineral and geo-
thermal leasing, including mineral materials disposal. 
(2) 
TIME 
FOR DEVELOPMENT.—The management 
plan 
required by this subsection shall be developed not later than 
5 years after the date of the enactment of this subtitle. 
(c) IMPLEMENTATION OF MANAGEMENT PLAN.— 
(1) MEMORANDUM OF UNDERSTANDING REQUIRED.—The Sec-
retary of the Army and the Secretary of the Interior shall 
enter into a memorandum of understanding to implement the 
management plan developed under subsection (b). 
(2) DURATION.—^The duration of any such memorandum 
of understanding shall be the same as the period of withdrawal 
specified in section 2908(a). 
(3) AMENDMENT.—^The memorandum of understanding may 
be amended by agreement of both Secretaries. 
(d) USE OF CERTAIN RESOURCES.—^The Secretary of the Army 
is authorized to utilize sand, gravel, or similar mineral or mineral 
material resources from the lands withdrawn by this subtitle when 
the use of such resources is required for construction needs of 
the Fort Carson Reservation or Pinon Canyon Maneuver Site. 
110 STAT. 2810 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 2906. MANAGEMENT OF WITHDRAWN AND ACQUIRED MINERAL 
RESOURCES. 
Except as provided in section 2905(d), the Secretary of the 
Interior shall manage all withdrawn and acquired mineral resources 
within the boundaries of the Fort Carson Military Reservation 
and Pinon Canyon Maneuver Site in the same manner as provided 
in section 12 of the Military Lands Withdrawal Act of 1986 (Public 
Law 99-606; 100 Stat. 3466) for mining and mineral leasing on 
certain lands withdrawn by that Act from all forms of appropriation 
under the public land laws. 
SEC. 2907. HUNTING, FISHING, AND TRAPPING. 
All hunting, fishing, and trapping on the lands withdrawn 
and reserved by this subtitle shall be conducted in accordance 
with section 2671 of title 10, United States Code. 
SEC. 2908. TERMINATION OF WITHDRAWAL AND RESERVATION. 
(a) TERMINATION DATE.—^The withdrawal and reservation made 
by this subtitle shall terminate 15 years after the date of the 
enactment of this subtitle. 
(b) DETERMINATION OF CONTINUING MILITARY NEED.— 
(1) DETERMINATION REQUIRED.—At least three years before 
the termination under subsection (a) of the withdrawal and 
reservation established by this subtitle, the Secretary of the 
Army shall advise the Secretary of the Interior as to whether 
or not the Department of the Army will have a continuing 
military need for any of the lands after the termination date. 
(2) METHOD OF MAKING DETERMINATION.—If the Secretary 
of the Army concludes under paragraph (1) that there will 
be a continuing military need for any of the lands after the 
termination date established by subsection (a), the Secretary 
of the Army, in accordance with applicable law, shall— 
(A) evaluate the environmental effects of renewal of 
such withdrawal and reservation; 
(B) hold at least one public hearing in Colorado 
concerning such evaluation; and 
(C) file, aft;er completing the requirements of subpara-
graphs (A) and (B), an application for extension of the 
withdrawal and reservation of such lands in accordance 
with the regulations and procedures of the Department 
of the Interior applicable to the extension of withdrawals 
for military uses. 
(3) NOTIFICATION.—The Secretary of the Interior shall 
notify the Congress concerning a filing under paragraph (3)(C). 
(c) EARLY RELINQUISHMENT OF WITHDRAWAL.—If the Secretary 
of the Army concludes under subsection (b) that before the termi-
nation date established by subsection (a) there will be no military 
need for all or any part of the lands withdrawn and reserved 
by this subtitle, or if, during the period of withdrawal, the Secretary 
of the Army otherwise decides to relinquish any or all of the 
lands withdrawn and reserved under this subtitle, the Secretary 
of the Army shall file with the Secretary of the Interior a notice 
of intention to relinquish such lands. 
(d) ACCEPTANCE OF LANDS PROPOSED FOR RELINQUISHMENT.— 
Notwithstanding any other provision of law, the Secretary of the 
Interior, upon deciding that it is in the public interest to accept 
jurisdiction over the lands proposed for relinquishment, may revoke 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2811 
the withdrawal and reservation established by this subtitle as it 
applies to the lands proposed for relinquishment. Should the deci-
sion be made to revoke the withdrawal and reservation, the Sec-
retary of the Interior shall publish in the Federal Register an 
appropriate order which shall— 
(1) terminate the withdrawal and reservation; 
(2) constitute official acceptsince of full jurisdiction over 
the lands by the Secretary of the Interior; and 
(3) state the date upon which the lands will be opened 
to the operation of the public land laws, including the mining 
laws if appropriate. 
SEC. 2909. DETERMINATION OF PRESENCE OF CONTAMINATION AND 
EFFECT OF CONTAMINATION. 
(a) DETERMINATION OF PRESENCE OF CONTAMINATION.— 
(1) BEFORE RELINQUISHMENT NOTICE.—Before filing a relin-
quishment notice under section 2908(c), the Secretary of the 
Army shall prepare a written determination as to whether 
and to what extent the lands to be relinquished are contami-
nated with explosive, toxic, or other hazardous materials. A 
copy of the determination made by the Secretary of the Army 
shall be supplied with the relinquishment notice. Copies of Federal Register, 
both the relinquishment notice and the determination under publication, 
this subsection shall be published in the Federal Register by 
the Secretary of the Interior. 
(2) UPON TERMINATION OF WITHDRAWAL.—^At the expiration 
of the withdrawal period made by this Act, the Secretary of 
the Interior shall determine whether and to what extent the 
lands withdrawn by this subtitle are contaminated to an extent 
which prevents opening such contaminated lands to operation 
of the public land laws. 
(b) PROGRAM OF DECONTAMINATION.— 
(1) IN GENERAL.—Throughout the duration of the with-
drawal and reservation made by this subtitle, the Secretary 
of the Army, to the extent funds are made available, shall 
maintain a program of decontamination of the lands withdrawn 
by this subtitle at least at the level of efibrt carried out during 
fiscal year 1992. 
(2) DECONTAMINATION OF LANDS TO BE RELINQUISHED.— 
In the case of lands subject to a relinquishment notice under 
section 2908(c) that are contaminated, the Secretary of the 
Army shall decontaminate the land to the extent that funds 
are appropriated for such purpose if the Secretary of the 
Interior, in consultation with the Secretary of the Army, deter-
mines that— 
(A) decontamination of the lands is practicable and 
economically feasible, taking into consideration the poten-
tial future use and value of the land; and 
(B) upon decontamination, the land could be opened 
to the operation of some or all of the public land laws, 
including the mining laws. 
(c) AUTHORITY OF SECRETARY OF THE INTERIOR TO REFUSE 
CONTAMINATED LANDS.—^The Secretary of the Interior shall not 
be required to accept lands proposed for relinquishment if the 
Secretary of the Army and the Secretary of the Interior conclude 
that— 
110 STAT. 2812 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(1) decontamination of any or all of the lands proposed 
for relinquishment is not practicable or economically feasible; 
(2) the lands cannot be decontaminated sufficiently to allow 
them to be opened to the operation of the public land 
laws; or 
(3) insufficient funds are appropriated for the purpose of 
decontaminating the lands. 
(d) EFFECT OF CONTINUED CONTAMINATION.—If the Secretary 
of the Interior declines under subsection (c) to accept jurisdiction 
of lands proposed for relinquishment or if the Secretary of the 
Interior determines under subsection (a)(2) that some of the lands 
withdrawn by this subtitle are contaminated to an extent that 
prevents opening the contaminated lands to operation of the public 
land laws— 
(1) the Secretary of the Army shall take appropriate steps 
to warn the public of the contaminated state of such lands 
and any risks associated with entry onto such lands; 
(2) after the expiration of the withdrawal, the Secretary 
of the Army shall undertake no activities on such lands except 
in connection with decontamination of such lands; and 
(3) the Secretary of the Army shall report to the Secretary 
of the Interior and to the Congress concerning the status of 
such lands and all actions taken under paragraphs (1) and 
(2). 
(e) EFFECT OF SUBSEQUENT DECONTAMINATION.—If the lands 
described in subsection (d) are subsequently decontaminated, upon 
certification by the Secretary of the Army that the lands are safe 
for all nonmilitary uses, the Secretary of the Interior shall 
reconsider accepting jurisdiction over the lands. 
(f) EFFECT ON OTHER LAWS.—Nothing in this subtitle shall 
affect, or be construed to affect, the obligations of the Secretary 
of the Army, if any, to decontaminate lands withdrawn by this 
subtitle pursuant to applicable law, including the Comprehensive 
Environmental Response Compensation and Liability Act of 1980 
(42 U.S.C. 9601 et seq.) and the Solid Waste Disposal Act (42 
U.S.C. 6901 et seq.). 
SEC. 2910. DELEGATION. 
The functions of the Secretary of the Army under this subtitle 
may be delegated. The functions of the Secretary of the Interior 
under this subtitle may be delegated, except that the order referred 
to in section 2908(d) may be approved and signed only by the 
Secretary of the Interior, the Deputy Secretary of the Interior, 
or an Assistant Secretary of the Department of the Interior. 
SEC. 2911. HOLD HARMLESS. 
Any party conducting any mining, mineral, or geothermal leas-
ing activity on lands comprising the Fort Carson Reservation or 
Pinoii Canyon Maneuver Site shall indemnify the United States 
against any costs, fees, damages, or other liabilities (including costs 
of litigation) incurred by the United States and arising from or 
relating to such mining activities, including costs of mineral mate-
rials disposal, whether arising under the Comprehensive Environ-
mental Response Compensation and Liability Act of 1980, the Solid 
Waste Disposal Act, or otherwise. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2813 
SEC. 2912. AMENDMENT TO MIUTARY LANDS WITHDRAWAL ACT OF 
1986. 
(a) USE OF CERTAIN RESOURCES.—Section 3(0 of the Military 
Lands Withdrawal Act of 1986 (Public Law 99-606; 100 Stat. 3461) 
is amended by adding at the end the following new paragraph: 
"(2) Subject to valid existing rights, the Secretary of the military 
department concerned may utilize sand, gravel, or similar mineral 
or material resources when the use of such resources is required 
for construction needs on the respective lands withdrawn by this 
Act.". 
(b) TECHNICAL CORRECTION.—Section 9(b) of the Military Lands 
Withdrawal Act of 1986 (Public Law 99-606; 100 Stat. 3466) is 
amended by striking "section 7(f)" and inserting in lieu thereof 
"section 8(f)". 
SEC. 2913. AUTHORIZATION OF APPROPRIATIONS. 
There are hereby authorized to be appropriated such sums 
as may be necessary to carry out the purposes of this subtitle. 
Subtitle B—El Centro Naval Air Facility 
Ranges Withdrawal 
S E C . 2921. SHORT TITLE AND DEFINITIONS. 
(a) SHORT TITLE.—This subtitle may be cited as the "El Centro 
Naval Air Facility Ranges Withdrawal Act". 
(b) DEFINITIONS.—In this subtitle: 
(1) The term "El Centro" means the Naval Air Facility, 
El Centro, California. 
(2) The term "cooperative agreement" means the coopera-
tive agreement entered into between the Bureau of Land 
Management, the Bureau of Reclamation, and the Department 
of the Navy, dated June 29, 1987, with regard to the defense-
related uses of Federal lands to further the mission of El 
Centro. 
(3) The term "relinquishment notice" means a notice of 
intention by the Secretary of the Navy under section 2928(a) 
to relinquish, before the termination date specified in section 
2925, the withdrawal and reservation of certain lands with-
drawn under this subtitle. 
SEC. 2922. WITHDRAWAL AND RESERVATION OF LANDS FOR EL 
CENTRO. 
(a) WITHDRAWALS.—Subject to valid existing rights, and except 
as otherwise provided in this subtitle, the Federal lands utilized 
in the mission of the Naval Air Facility, El Centro, California, 
that are described in subsection (c) are hereby withdrawn from 
all forms of appropriation under the public land laws, including 
the mining laws, but not the mineral leasing or geothermal leasing 
laws or the mineral materials sales laws. 
(b) RESERVATION.—^The lands withdrawn under subsection (a) 
are reserved for the use by the Secretary of the Navy— 
(1) for defense-related purposes in accordance with the 
cooperative agreement; and 
(2) subject to notice to the Secretary of the Interior under 
section 2924(e), for other defense-related purposes determined 
by the Secretary of the Navy. 
El Centro Naval 
Air Facility 
Ranges 
Withdrawal Act. 
California. 
110 STAT. 2814 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(c) DESCRIPTION OF WITHDRAWN LANDS.—^The lands withdrawn 
and reserved under subsection (a) are— 
(1) the Federal lands comprising approximately 46,600 
acres in Imperial County, California, as generally depicted in 
part on a map entitled "Exhibit A, Naval Air Facility, El 
Centro, California, Land Acquisition Map, Range 2510 (West 
Mesa)" and dated March 1993 and in part on a map entitled 
"Exhibit B, Naval Air Facility, El Centro, California, Land 
Acquisition Map Range 2512 (East Mesa)" and dated March 
1993; and 
(2) and all other areas within the boundaries of such lands 
as depicted on such maps that may become subject to the 
operation of the public land laws. 
SEC. 2923. MAPS AND LEGAL DESCRIPTIONS. 
(a) PUBLICATION AND FILING REQUIREMENTS.—AS soon as prac-
ticable after the date of the enactment of this subtitle, the Secretary 
of the Interior shall— 
Federal Register, 
(1) publish in the Federal Register a notice containing 
publication. 
the legal description of the lands withdrawn and reserved under 
this subtitle; and 
(2) file maps and the legal description of the lands with-
drawn and reserved under this subtitle with the Committee 
on Energy and Natural Resources of the Senate and with 
the Committee on Resources of the House of Representatives. 
(b) LEGAL EFFECT.—^The maps and legal description prepared 
under subsection (a) shall have the same force and effect as if 
they were included in this subtitle, except that the Secretary of 
the Interior may correct clerical and typographical errors in the 
maps and legal description. 
(c) AVAILABILITY FOR PUBLIC INSPECTION.—Copies of the maps 
and legal description prepared under subsection (a) shall be avail-
able for public inspection in— 
(1) the Office of the State Director, California State Office 
of the Bureau of Land Management, Sacramento, California; 
(2) the Office of the District Manager, California Desert 
District of the Bureau of Land Management, Riverside, 
California; and 
(3) the Office of the Commanding Officer, Marine Corps 
Air Station, Yuma, Arizona. 
(d) REIMBURSEMENT.—^The Secretary of Navy shall reimburse 
the Secretary of the Interior for the cost of implementing this 
section. 
SEC. 2924. MANAGEMENT OF WITHDRAWN LANDS. 
(a) 
MANAGEMENT CONSISTENT WITH 
COOPERATIVE AGREE-
MENT.—^The lands and resources shall be managed in accordance 
with the cooperative agreement, revised as necessary to conform 
to the provisions of this subtitle. The parties to the cooperative 
agreement shall review the cooperative agreement for conformance 
with this subtitle and amend the cooperative agreement, if appro-
priate, within 120 days after the date of the enactment of this 
subtitle. The term of the cooperative agreement shall be amended 
so that its duration is at least equal to the duration of the with-
drawal made by section 2925. The cooperative agreement may be 
reviewed and amended by the managing agencies as necessary. 
(b) MANAGEMENT BY SECRETARY OF THE INTERIOR.— 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2815 
(1) GENERAL MANAGEMENT AUTHORITY.—During the period 
of withdrawal, the Secretary of the Interior shall manage the 
lands withdrawn and reserved under this subtitle pursuant 
to the Federal Land Policy and Management Act of 1976 (43 
U.S.C, 1701 et seq.) and other applicable laws, including this 
subtitle. 
(2) SPECIFIC AUTHORITIES.—TO the extent consistent with 
applicable laws. Executive orders, and the cooperative agree-
ment, the lands withdrawn and reserved under this subtitle 
may be managed in a manner permitting— 
(A) protection of wildlife and wildlife habitat; 
(B) control of predatory and other animals; 
(C) the prevention and appropriate suppression of 
brush and rsinge fires resulting from nonmilitary activities; 
and 
(D) geothermal leasing and development and related 
power production, mineral leasing and development, and 
mineral material sales. 
(3) EFFECT OF WITHDRAWAL.—The Secretary of the Interior 
shall manage the lands withdrawn and reserved under this 
subtitle, in coordination with the Secretary of the Navy, such 
that all nonmilitary use of such lands, including the uses 
described in paragraph (2), shall be subject to such conditions 
and restrictions as may be necessary to permit the military 
use of such lands for the purposes specified in the cooperative 
agreement or authorized pursuant to this subtitle. 
(c) CERTAIN ACTIVITIES SUBJECT TO CONCURRENCE OF NAVY.— 
The Secretary of the Interior may issue a lease, easement, 
right-of-way, or other authorization with respect to the nonmilitary 
use of the withdrawn lands only with the concurrence of the Sec-
retary of the Navy and under the terms of the cooperative agree-
ment. 
(d) ACCESS RESTRICTIONS.—If the Secretary of the Navy deter-
mines that military operations, public safety, or national security 
require the closure to public use of any road, trail, or other portion 
of the lands withdrawn under this subtitle, the Secretary may 
take such action as the Secretary determines necessary or desirable 
to effect and maintain such closure. Any such closure shall be 
limited to the minimum areas and periods which the Secretary 
of the Navy determines are required to carry out this subsection. 
Before and during any closure under this subsection, the Secretary 
Notification. 
of the Navy shall keep appropriate warning notices posted and 
take appropriate steps to notify the public concerning such closures. 
(e) ADDITIONAL MILITARY USES.—Lands withdrawn under this 
subtitle may be used for defense-related uses other than those 
specified in the cooperative agreement. The Secretary of the Navy Notification, 
shall promptly notify the Secretary of the Interior in the event 
that the lands withdrawn under this subtitle will be used for 
additional defense-related purposes. Such notification shall indicate 
the additional use or uses involved, the proposed duration of such 
uses, and the extent to which such additional military uses of 
the withdrawn lands will require that additional or more stringent 
conditions or restrictions be imposed on otherwise-permitted non-
military uses of all or any portion of the withdrawn lands. 
110 STAT. 2816 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 2925. DURATION OF WITHDRAWAL AND RESERVATION. 
The withdrawal and reservation made under this subtitle shall 
terminate 25 years after the date of the enactment of this subtitle. 
SEC. 2926. CONTINUATION 
OF 
ONGOING 
DECONTAMINATION 
ACTIVITIES. 
Throughout the duration of the withdrawal and reservation 
made under this subtitle, and subject to the availability of funds, 
the Secretary of the Navy shall maintain a program of decontamina-
tion of the lands withdrawn under this subtitle at least at the 
level of decontamination activities performed on such lands in fiscal 
year 1995. Such activities shall be subject to applicable laws, such 
as the amendments made by the Federal Facility Compliance Act 
of 1992 (Public Law 102-386; 106 Stat. 1505) and the Defense 
Environmental Restoration Program established under section 2701 
of title 10, United States Code. 
SEC. 2927. REQUIREMENTS FOR EXTENSION. 
(a) NOTICE OF CONTINUED MILITARY NEED.—^Not later than 
five years before the termination date specified in section 2925, 
the Secretary of the Navy shall advise the Secretary of the Interior 
as to whether or not the Navy will have a continuing military 
need for any or all of the lands withdrawn and reserved under 
this subtitle after the termination date. 
(b) APPLICATION FOR EXTENSION.—If the Secretary of the Navy 
determines that there will be a continuing military need for any 
or all of the withdrawn lands after the termination date specified 
in section 2925, the Secretary of the Navy shall file an application 
for extension of the withdrawal and reservation of the lands in 
accordance with the then existing regulations and procedures of 
the Department of the Interior applicable to extension of withdrawal 
of lands for military purposes and that are consistent with this 
subtitle. Such application shall be filed with the Department of 
the Interior not later than four years before the termination date. 
(c) EXTENSION PROCESS.—^The withdrawal and reservation 
established by this subtitle may not be extended except by an 
Act or Joint Resolution of Congress. 
SEC. 2928. EARLY RELINQUISHMENT OF WITHDRAWAL. 
(a) FILING OF RELINQUISHMENT NOTICE.—If, during the period 
of withdrawal and reservation specified in section 2925, the Sec-
retary of the Navy decides to relinquish all or any portion of 
the lands withdrawn and reserved under this subtitle, the Secretary 
of the Navy shall file a notice of intention to relinquish with 
the Secretary of the Interior. 
(b) DETERMINATION OF PRESENCE OF CONTAMINATION.—Before 
transmitting a relinquishment notice under subsection (a), the Sec-
retary of the Navy, in consultation with the Secretary of the 
Interior, shall prepare a written determination concerning whether 
and to what extent the lands to be relinquished are contaminated 
with explosive, toxic, or other hazardous wastes and substances. 
A copy of such determination shall be transmitted with the relin-
quishment notice. 
(c) 
DECONTAMINATION 
AND REMEDIATION.—In the 
case 
of 
contaminated lands which are the subject of a relinquishment 
notice, the Secretary of the Navy shall decontaminate or remediate 
the land to the extent that funds are appropriated for such purpose 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2817 
if the Secretary of the Interior, in consultation with the Secretary 
of the Navy, determines that— 
(1) decontamination or remediation of the lands is prac-
ticable and economically feasible, taking into consideration the 
potential future use and value of the land; and 
(2) upon decontamination or remediation, the land could 
be opened to the operation of some or all of the public land 
laws, including the mining laws. 
(d) DECONTAMINATION AND REMEDIATION ACTIVITIES SUBJECT 
TO OTHER LAWS.—^The activities of the Secretary of the Navy under 
subsection (c) are subject to applicable laws and regulations, includ-
ing the Defense Environmental Restoration Program established 
under section 2701 of title 10, United States Code, the Comprehen-
sive Environmental Response Compensation and Liability Act of 
1980 (42 U.S.C. 9601 et seq.), and the Solid Waste Disposal Act 
(42 U.S.C. 6901 et seq.). 
(e) AUTHORITY OF SECRETARY OF THE INTERIOR TO REFUSE 
CONTAMINATED LANDS.—^The Secretary of the Interior shall not 
be required to accept lands specified in a relinquishment notice 
if the Secretary of the Interior, after consultation with the Secretary 
of the Navy, concludes that— 
(1) decontamination or remediation of any land subject 
to the relinquishment notice is not practicable or economically 
feasible; 
(2) the land cannot be decontaminated or remediated 
sufficiently to be opened to operation of some or all of the 
public land laws; or 
(3) a sufficient amount of funds are not appropriated for 
the decontamination of the land. 
(0 STATUS OF CONTAMINATED LANDS.—If, because of the condi-
tion of the lands, the Secretary of the Interior declines to accept 
jurisdiction of lands proposed for relinquishment or, if at the expira-
tion of the withdrawal made under this subtitle, the Secretary 
of the Interior determines that some of the lands withdrawn under 
this subtitle are contaminated to an extent which prevents opening 
such contaminated lands to operation of the public land laws— 
(1) the Secretary of the Navy shall take appropriate steps Safety, 
to warn the public of the contaminated state of such lands 
and any risks associated with entry onto such lands; 
(2) after the expiration of the withdrawal, the Secretary 
of the Navy shall retain jurisdiction over the withdrawn lands, 
but shall undertake no activities on such lands except in connec-
tion 
with the decontamination 
or remediation 
of such 
lands; and 
(3) the Secretary of the Navy shall report to the Secretary Reports. 
of the Interior and to the Congress concerning the status of 
such lands and all actions taken under paragraphs (1) 
and (2). 
(g) SUBSEQUENT DECONTAMINATION OR REMEDIATION.—If lands 
covered by subsection (f) are subsequently decontaminated or 
remediated and the Secretary of the Navy certifies that the lands 
are safe for nonmilitary uses, the Secretary of the Interior shall 
reconsider accepting jurisdiction over the lands. 
(h) REVOCATION AUTHORITY.—Notwithstanding any other provi-
sion of law, upon deciding that it is in the public interest to 
accept jurisdiction over lands specified in a relinquishment notice, 
the Secretary of the Interior may revoke the withdrawal and 
110 STAT. 2818 
PUBLIC LAW 104-201—SEPT. 23, 1996 
reservation made under this subtitle as it applies to such lands. 
Federal Register, If the decision be made to accept the relinquishment and to revoke 
publication. 
the withdrawal and reservation, the Secretary of the Interior shall 
publish in the Federal Register an appropriate order which shall— 
(1) terminate the withdrawal and reservation; 
(2) constitute official acceptance of full jurisdiction over 
the lands by the Secretary of the Interior; and 
(3) state the date upon which the lands will be opened 
to the operation of the public land laws, including the mining 
laws, if appropriate. 
SEC. 2929. DELEGATION OF AUTHORITY. 
(a) DEPARTMENT OF THE NAVY.—^The functions of the Secretary 
of the Navy under this subtitle may be delegated. 
(b) DEPARTMENT OF THE INTERIOR.—^The functions of the Sec-
retary of the Interior under this subtitle may be delegated, except 
that an order described in section 2928(h) may be approved and 
signed only by the Secretary of the Interior, the Deputy Secretary 
of the Interior, or an Assistant Secretary of the Department of 
the Interior. 
SEC. 2930. HUNTING, FISHING, AND TRAPPING. 
All hunting, fishing, and trapping on the lands withdrawn 
under this subtitle shall be conducted in accordance with section 
2671 of title 10, United States Code. 
SEC. 2931. HOLD HARMLESS. 
Any party conducting any mining, mineral, or geothermal leas-
ing activity on lands withdrawn and reserved under this subtitle 
shall indemnify the United States against any costs, fees, damages, 
or other liabilities (including costs of litigation) incurred by the 
United States and arising from or relating to such mining activities, 
including costs of mineral materials disposal, whether arising under 
the Comprehensive Environmental Response Compensation and 
Liability Act of 1980, the Solid Waste Disposal Act, or otherwise. 
DIVISION C—DEPARTMENT OF ENERGY 
NATIONAL 
SECURITY AUTHORIZATIONS AND 
OTHER AUTHORIZATIONS 
TITLE XXXI—DEPARTMENT OF ENERGY 
NATIONAL SECURITY PROGRAMS 
Subtitle A—^National Security Programs Authorizations 
Sec. 3101. Weapons activities. 
Sec. 3102. Environmental restoration and waste management. 
Sec. 3103. Defense fixed asset acquisition/privatization. 
Sec. 3104. Other defense activities. 
Sec. 3105. Defense nuclear waste disposal. 
Subtitle B—Recxirring General Provisions 
Sec. 3121. Reprogramming. 
Sec. 3122. Limits on general plant projects. 
Sec. 3123. Limits on construction projects. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2819 
Sec. 3124. Fund transfer authority. 
Sec. 3125. Authority for conceptual and construction design. 
Sec. 3126. Authority for emergency planning, design, and construction activities. 
Sec. 3127. Funds available for all national security programs of the Department of 
Energy. 
Sec. 3128. Availability of funds. 
Subtitle C—^Program Authorizations, Restrictions, and Limitations 
Sec. 3131. Stockpile stewardship program. 
Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile. 
Sec. 3133. Tritium production. 
Sec. 3134. Modernization and consolidation of tritium recycling facilities. 
Sec. 3135. Production of high explosives. 
Sec. 3136. Limitation on use of funds for certain research and development 
purposes. 
Sec. 3137. Prohibition on funding nuclear weapons activities with People's Republic 
of China. 
Sec. 3138. International cooperative stockpile stewardship programs. 
Sec. 3139. Temporary authority relating to transfers of defense environmental 
management funds. 
Sec. 3140, Management structure for nuclear weapons production facilities and 
nuclear weapons laboratories. 
Sec. 3141. Accelerated schedule for isolating high-level nuclear waste at the 
defense waste processing facility, Savannah River Site. 
Sec. 3142. Processing and treatment of high-level nuclear waste and spent nuclear 
fuel rods. 
Sec. 3143. Projects to accelerate closure activities at defense nuclear facilities. 
Sec. 3144. Payment of costs of operation and maintenance of infrastructure at 
Nevada Test Site. 
Subtitle D—Other Matters 
Sec. 3151. Report on plutonium pit production and remanufacturing plans. 
Sec. 3152. Amendments relating to baseline environmental management reports. 
Sec. 3153. Requirement to develop future use plans for environmental management 
program. 
Sec. 3154. Report on Department of Energy liability at Department superfiind 
sites. 
Sec. 3155. Requirement for annual five-year budget for the national security 
programs of the Department of Energy. 
Sec. 3156. Requirements for Department of Energy weapons activities budgets for 
fiscal years after fiscal year 1997. 
Sec. 3157. Repeal of requirement relating to accounting procedures for Department 
of Energy mnds. 
Sec. 3158. Update ofreport on nuclear test readiness postures. 
Sec. 3159. Reports on critical difficulties at nuclear weapons laboratories and 
nuclear weapons production plants. 
Sec. 3160. Extension of applicability of notice-and-wait requirement regarding 
proposed cooperation agreements. 
Sec. 3161. Sense of Senate relating to redesignation of defense environmental 
restoration and waste management program. 
Sec. 3162. Commission on maintaining United States nuclear weapons expertise. 
Sec. 3163. Sense of Congress regarding reliability and safety of remaining nuclear 
forces. 
Sec. 3164. Study on worker protection at the Mound facility. 
Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement Project, 
Livermore, California. 
Sec. 3166. Fellowship program for development of skills critical to Department of 
Energy nuclear weapons complex. 
Subtitle E—^Defense Nuclear Environmental Cleanup and Management 
Sec. 3171. Purpose. 
Sec. 3172. Applicability. 
Sec. 3173. Site manager. 
Sec. 3174. Department of Energy orders. 
Sec. 3175. Deployment of technology for remediation of defense nuclear waste. 
Sec. 3176. Performance-based contracting. 
Sec. 3177. Designation of covered facilities as environmental cleanup demonstra-
tion areas. 
Sec. 3178. Definitions. 
Sec. 3179. Termination. 
Sec. 3180. Report. 
29-194 O - 96 - 35 : QL 3 Part 3 
110 STAT. 2820 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Subtitle F—^Waste Isolation Pilot Plant Land Withdrawal Act Amendments 
Sec. 3181. Short title. 
Sec. 3182. Definitions. 
Sec. 3183. Management plan. 
Sec. 3184. Repeal of test phase and retrieval plans. 
Sec. 3185. Test phase activities. 
Sec. 3186. Disposal operations. 
Sec. 3187. Environmental Protection Agency disposal regvdations. 
Sec. 3188. Compliance with environmental laws and regulations. 
Sec. 3189. Sense of Congress on commencement of emplacement of transuranic 
Sec. 3190. Decommissioning of WIPP. 
Sec. 3191. Authorizations for economic assistance and miscellaneous payments. 
Subtitle A—National Security Programs 
Authorizations 
SEC. 3101. WEAPONS ACTIVITIES. 
(a) STOCKPILE STEWARDSHIP.—Subject to subsection (d), funds 
are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1997 for stockpile stewardship in carrying 
out weapons activities necessary for national security programs 
in the amount of $1,661,767,000, to be allocated as follows: 
(1) For core stockpile stewardship, $1,235,907,000, to be 
allocated as follows: 
(A) For operation and maintenance, $1,147,570,000. 
(B) For plant projects (including maintenance, restora-
tion, planning, construction, acquisition, modification of 
facilities, and the continuation of projects authorized in 
prior 
years, 
and 
land 
acquisition 
related 
thereto), 
$88,337,000, to be allocated as follows: 
Project 96-D-102, stockpile stewardship facilities 
revitalization. Phase VI, various locations, $19,250,000. 
Project 96-D-103, ATLAS, Los Alamos National 
Laboratory, Los Alamos, New Mexico, $15,100,000. 
Project 96-D-104, processing and environmental 
technology laboratory (PETL), Sandia National Labora-
tories, Albuquerque, New Mexico, $14,100,000. 
Project 96-D-105, contained firing facility addi-
tion, Lawrence Livermore National Laboratory, Liver-
more, California, $17,100,000. 
Project 
95-D-102, 
Chemical 
and 
Metallurgy 
Research Building upgrades project, Los Alamos Na-
tional 
Laboratory, 
Los 
Alamos, 
New 
Mexico, 
$15,000,000. 
Project 
94—D-102, nuclear weapons 
research, 
development, and testing facilities revitalization. Phase 
V, various locations, $7,787,000. 
(2) For inertial fusion, $366,460,000, to be allocated 
as follows: 
(A) For operation and maintenance, $234,560,000. 
(B) For the following plant project (including mainte-
nance, restoration, planning, construction, acquisition, and 
modification of facilities, and land acquisition related there-
to), $131,900,000 to be allocated as follows: 
Project 96-E)-lll, national ignition facility, loca-
tion to be determined, $131,900,000. 
(3) For technology transfer and education, $59,400,000. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2821 
(b) STOCKPILE MANAGEMENT.—Subject to subsection (d), funds 
are hereby authorized to be appropriated to the Depari;ment of 
Energy for fiscal year 1997 for stockpile management in carrying 
out weapons activities necessary for national security programs 
in the amount of $1,962,831,000, to be allocated as follows: 
(1) For operation and maintenance, $1,868,470,000. 
(2) For plant projects (including maintenance, restoration, 
planning, construction, acquisition, modification of facilities, 
and the continuation of projects authorized in prior years, and 
land acquisition related thereto), $94,361,000, to be allocated 
as follows: 
Project 97-D-121, consolidated pit packaging system, 
Pantex Plant, Amarillo, Texas, $870,000. 
Project 97-D-122, nuclear materials storage facility 
renovation, Los Alamos National Laboratory, Los Alamos, 
New Mexico, $4,000,000. 
Project 97-D-123, structural upgrades, Kansas City 
Plant, Kansas City, Missouri, $1,400,000. 
Project 97-D-124, steam plant wastewater treatment 
facility upgrade, Y-12 Plant, Oak Ridge, Tennessee, 
$600,000. 
Project 96-D-122, sewage treatment quality upgrade 
(STQU), Pantex Plant, Amarillo, Texas, $100,000. 
Project 96-D-123, retrofit heating, ventilation, and air 
conditioning and chillers for ozone protection, Y-12 Plant, 
Oak Ridge, Tennessee, $7,000,000. 
Project 96-D-125, Washington measurements oper-
ations facility, Andrews Air Force Base, Camp Springs, 
Maryland, $3,825,000. 
Project 95-D-122, sanitary sewer upgrade, Y-12 Plant, 
Oak Ridge, Tennessee, $10,900,000. 
Project 94-D-124, hydrogen fluoride supply system, 
Y-12 Plant, Oak Ridge, Tennessee, $4,900,000. 
Project 94-D-125, upgrade life safety, Kansas City 
Plant, Kansas City, Missouri, $5,200,000. 
Project 
94-D-127, emergency notification 
system, 
Pantex Plant, Amarillo, Texas, $2,200,000. 
Project 93-D-122, life safety upgrades, Y-12 Plant, 
Oak Ridge, Tennessee, $7,200,000. 
Project 
93-D-123, complex-21, various 
locations, 
$14,487,000. 
Project 
88-D-122, 
facilities 
capability 
assurance 
program, various locations, $21,940,000. 
Project 
88-D-123, security 
enhancement, 
Pantex 
Plant, Amarillo, Texas, $9,739,000. 
(c) PROGRAM DIRECTION.—-Subject to subsection (d), funds are 
hereby authorized to be appropriated to the Department of Energy 
for fiscal year 1997 for program direction in carrying out weapons 
activities neces'^ary for national security programs in the amount 
of $313,404,000. 
(d) ADJUSTMENT.—The total amount authorized to be appro-
priated pursuant to this section is the sum of the amounts author-
ized to be appropriated in subsections (a) through (c) reduced by 
$20,000,000 for use of prior year balances. 
110 STAT. 2822 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGE-
MENT. 
(a) ENVIRONMENTAL RESTORATION.—Subject to subsection (j), 
funds are hereby authorized to be appropriated to the Department 
of Energy for fiscal year 1997 for environmental restoration in 
carrying out environmental restoration and waste management 
activities necessary for national security programs in the amount 
of $1,762,194,000, of which $376,648,000 shall be allocated to the 
uranium enrichment decontamination and decommissioning fund. 
(b) WASTE MANAGEMENT.—Subject to subsection (j)» funds are 
hereby authorized to be appropriated to the Department of Energy 
for fiscal year 1997 for waste management in carrying out environ-
mental restoration and waste management activities necessary for 
national security programs in the amount of $1,578,653,000, to 
be allocated as follows: 
(1) For operation and maintenance, $1,490,326,000. 
(2) For plant projects (including maintenance, restoration, 
planning, construction, acquisition, modification of facilities, 
and the continuation of projects authorized in prior years, and 
land acquisition related thereto), $88,327,000, to be allocated 
as follows: 
Project 97-D-402, tank farm restoration and safe oper-
ations, Richland, Washington, $7,584,000. 
Project 
96-D-408, 
waste 
management 
upgrades, 
various locations, $11,246,000. 
Project 95-D-402, install permanent electrical service. 
Waste Isolation 
Pilot Plant, Carlsbad, New Mexico, 
$752,000. 
Project 95-D-405, industrial landfill V and construc-
tion/demolition 
landfill VII, Y-12 Plant, Oak Ridge, 
Tennessee, $200,000. 
Project 94-D-404, Melton Valley storage tank capacity 
increase. Oak Ridge National Laboratory, Oak Ridge, 
Tennessee, $6,345,000. 
Project 94-D-407, initial tank retrieval systems, Rich-
land, Washington, $12,600,000. 
Project 93-D-182, replacement of cross-site transfer 
system, Richland, Washington, $8,100,000. 
Project 93-D-187, high-level waste removal from filled 
waste tanks. Savannah River Site, Aiken, South Carolina, 
$20,000,000. 
Project 89-D-174, replacement high-level waste evapo-
rator. Savannah 
River Site, Aiken, South 
Carolina, 
$11,500,000. 
Project 86-D-103, decontamination and waste treat-
ment facility, Lawrence Livermore National Laboratory, 
Livermore, California, $10,000,000. 
(c) NUCLEAR MATERIALS AND FACILITIES STABILIZATION.—Sub-
ject to subsection (j), funds are hereby authorized to be appropriated 
to the Department of Energy for fiscal year 1997 for nuclear mate-
rials and facilities stabilization in carrying out environmental res-
toration and waste management activities necessary for national 
security programs in the amount of $1,291,290,000 to be allocated 
as follows: 
(1) For operation and maintenance, $1,173,718,000. 
(2) For plant projects (including maintenance, restoration, 
planning, construction, acquisition, modification of facilities. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2823 
and the continuation of projects authorized in prior years, and 
land acquisition related thereto), $117,572,000, to be allocated 
as follows: 
Project 97-D-450, Actinide packaging and storage 
facility. Savannah River Site, Aiken, South Carolina, 
$7,900,000. 
Project 97-D-451, B-Plant safety class ventilation 
upgrades, Richland, Washington, $1,500,000. 
Project 97-D-470, environmental monitoring labora-
tory. Savannah 
River 
Site, Aiken, 
South 
Carolina, 
$2,500,000. 
Project 97-D-473, health physics site support facility, 
Savannah River Site, Aiken, South Carolina, $2,000,000. 
Project 96-D-406, spent nuclear fuels canister storage 
and 
stabilization 
facility, 
Richland, 
Washington, 
$60,672,000. 
Project 
96-D-461, electrical distribution 
upgrade, 
Idaho National Engineering Laboratory, Idaho, $6,790,000. 
Project 
96-D-464, 
electrical 
and 
utility 
systems 
upgrade, Idaho Chemical Processing Plant, Idaho National 
Engineering Laboratory, Idaho, $10,440,000. 
Project 96-D-471, chlorofluorocarbon heating, ventila-
tion, and air conditioning and chiller retrofit, Savannah 
River Site, Aiken, South Carolina, $8,541,000. 
Project 95-E-600, hazardous materials management 
and 
emergency 
response 
training 
center, 
Richland, 
Washington, $7,900,000. 
Project 95-D-155, upgrade site road infrastructure. 
Savannah River Site, South Carolina, $4,137,000. 
Project 95-D-456, security facilities 
consolidation, 
Idaho Chemical Processing Plant, Idaho National Engineer-
ing Laboratory, Idaho, $4,645,000. 
Project 94—D-401, emergency response facility, Idaho 
National Engineering Laboratory, Idaho, $547,000. 
(d) PROGRAM DIRECTION.—Subject to subsection (j), funds are 
hereby authorized to be appropriated to the Department of Energy 
for fiscal year 1997 for program direction in carrying out environ-
mental restoration and waste management activities necessary for 
national security programs in the amount of $411,511,000. 
(e) TECHNOLOGY DEVELOPMENT.—Subject to subsection (j), 
funds are hereby authorized to be appropriated to the Department 
of Energy for fiscal year 1997 for technology development in carry-
ing out environmental restoration and waste management activities 
necessary for national security programs in the amount of 
$303,771,000. 
(0 POLICY AND MANAGEMENT.—Subject to subsection (j), funds 
are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1997 for policy and management in carrying 
out environmental restoration and waste management activities 
necessary for national security programs in the amount of 
$23,155,000. 
(g) ENVIRONMENTAL SCIENCE PROGRAM.—Subject to subsection 
(j), funds are hereby authorized to be appropriated to the Depart-
ment of Energy for fiscal year 1997 for the environmental science 
program in carrying out environmental restoration and waste 
management activities necessary for national security programs 
in the amount of $62,136,000. 
110 STAT. 2824 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(h) ENVIRONMENTAL MANAGEMENT PRIVATIZATION.—Subject to 
subsection (j), funds are hereby authorized to be appropriated to 
the Department of Energy for fiscal year 1997 for environmental 
management privatization in carrying out environmental restora-
tion and waste management activities necessary for national 
security programs in the amount of $185,000,000. 
(i) CLOSURE PROJECTS.—Subject to subsection (j), funds are 
hereby authorized to be appropriated to the Department of Energy 
for fiscal year 1997 for closure projects selected under section 3143 
in the amount of $50,000,000. 
(j) ADJUSTMENTS.—^The total amount authorized to be appro-
priated pursuant to this section is the sum of the amounts 
authorized to be appropriated in subsections (a) through (i) reduced 
by the sum of— 
(1) $ 150,400,000, for use of prior year balances; and 
(2) $8,000,000, for Savannah River Pension Refund. 
SEC. 3103. DEFENSE FIXED ASSET ACQUISITION/PRIVATIZATION. 
Funds are hereby authorized to be appropriated to the Depart-
ment of Energy for fiscal year 1997 for the defense fixed asset 
acquisition/privatization program in the amount of $182,000,000. 
SEC. 3104. OTHER DEFENSE ACTIYITIES. 
(a) IN GENERAL.—Subject to subsection (b), funds are hereby 
authorized to be appropriated to the Department of Energy for 
fiscal year 1997 for other defense activities in canying out programs 
necessary for national security in the amount of $1,590,231,000, 
to be allocated as follows: 
(1) For verification and control technology, $456,348,000, 
to be allocated as follows: 
(A) For nonproliferation and verification research and 
development, $204,919,000. 
(B) For arms control, $216,244,000. 
(C) For intelligence, $35,185,000. 
(2) For nuclear safeguards and security, $47,208,000. 
(3) For security investigations, $22,000,000. 
(4) For emergency management, $16,794,000. 
(5) For program direction, $88,122,000. 
(6) For international nuclear safety, $15,200,000. 
(7) 
For 
environment, 
safety, 
and 
health, 
defense, 
$63,800,000. 
(8) For worker and community transition 
assistance, 
$67,000,000. 
(9) For fissile materials disposition, $93,796,000, to be 
allocated as follows: 
(A) For operation and maintenance, $76,796,000. 
(B) For the following plant project (including mainte-
nance, restoration, planning, construction, acquisition, and 
modification of facilities, and land acquisition related 
thereto): 
Project 97-D-140, consolidated special nuclear 
materials storage facility, site to be determined, 
$17,000,000. 
(10) For nuclear security/Russian production reactor shut-
down, $6,000,000. 
(11) For naval reactors development, $681,932,000, to be 
allocated as follows: 
(A) For operation and infrastructure, $649,330,000. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2825 
(B) For program direction, $18,902,000. 
(C) For plant projects (including maintenance, restora-
tion, planning, construction, acquisition, modification of 
facilities, and the continuation of projects authorized in 
prior 
years, 
and 
land 
acquisition 
related 
thereto), 
$13,700,000, to be allocated as follows: 
Project 97-D-201, advanced test reactor secondary 
coolant refurbishment, Idaho National Engineering 
Laboratory, Idaho, $400,000. 
Project 95-D-200, laboratory systems and hot cell 
upgrades, various locations, $4,800,000. 
Project 95-D-201, advanced test reactor radio-
active 
waste 
system 
upgrades, 
Idaho 
Nationsd 
Engineering Laboratory, Idaho, $500,000. 
Project 90-N-102, expended core facility dry cell 
project, Naval Reactors Facility, Idaho, $8,000,000. 
(b) ADJUSTMENT.—^The totsil amount authorized to be appro-
priated pursuant to this section is the sum of the amounts author-
ized to be appropriated in paragraphs (1) through (10) of subsection 
(a) reduced by $25,500,000 for use of prior year balances. 
SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL. 
Funds are hereby authorized to be appropriated to the Depart-
ment of Energy for fiscal year 1997 for payment to the Nuclear 
Waste Fund established in section 302(c) of the Nuclear Waste 
Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of 
$200,000,000. 
Subtitle B—^Recurring General Provisions 
SEC. 3121. REPROGRAMMING. 
(a) IN GENERAL.—^Until the Secretary of Energy submits to 
the congressional defense committees the report referred to in sub-
section (b) and a period of 30 days has elapsed after the date 
on which such committees receive the report, the Secretary may 
not use Eimounts appropriated pursuant to this title for any 
program— 
(1) in amounts that exceed, in a fiscal year— 
(A) 110 percent of the amount authorized for that 
program by this title; or 
(B) $1,000,000 more than the amount authorized for 
that program by this title; or 
(2) which has not been presented to, or requested of, 
Congress. 
(b) REPORT.—(1) The report referred to in subsection (a) is 
a report containing a fiiU and complete statement of the action 
proposed to be taken and the facts and circumstances relied upon 
in support of such proposed action. 
(2) In the computation of the 30-day period under subsection 
(a), there shall be excluded any day on which either House of 
Congress is not in session because of an adjournment of more 
than 3 days to a day certain. 
(c) LIMITATIONS.—(1) In no event may the total amount of 
funds obligated pursuant to this title exceed the total amount 
authorized to be appropriated by this title. 
110 STAT. 2826 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(2) Funds appropriated pursuant to this title may not be used 
for an item for which Congress has specifically denied funds. 
SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS. 
(a) IN GENERAL.—The Secretary of Energy may carry out any 
construction project under the general plant projects authorized 
by this title if the total estimated cost of the construction project 
does not exceed $2,000,000. 
(b) REPORT TO CONGRESS.—If, at any time during the construc-
tion of any general plant project authorized by this title, the esti-
mated cost of the project is revised because of unforeseen cost 
variations and the revised cost of the project exceeds $2,000,000, 
the Secretary shall immediately furnish a complete report to the 
congressional defense committees explaining the reasons for the 
cost variation. 
(c) REPORT ON PERMANENT AUTHORIZATION OF APPROPRIATIONS 
FOR GENERAL PLANT PROJECTS.—(1) Not later than February 1, 
1997, the Secretary of Energy shall submit to the congressional 
defense committees a report on the desirability of a permanent 
authorization of appropriations for the defense general plant 
projects and civilian general plant projects of the Department of 
Energy. 
(2) If the Secretary determines for purposes of the report under 
paragraph (1) that a permanent authorization of appropriations 
is desirable, the report shall include— 
(A) recommendations for legislation to provide for a perma-
nent authorization of appropriations, including a formula for 
adjusting for inflation the amount authorized to be appropriated 
for the projects to be covered by such authorization of appropria-
tions; and 
(B) a description of the actions to be underteiken by the 
Secretary to control costs with respect to such projects, includ-
ing any actions that may depend on the size, nature, or scope 
of the project concerned. 
SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS. 
(a) IN GENERAL.—(1) Except as provided in paragraph (2), 
construction on a construction project may not be started or addi-
tional obligations incurred in connection with the project above 
the total estimated cost, whenever the current estimated cost of 
the construction project, which is authorized by section 3101, 3102, 
or 3103, or which is in support of national security programs of 
the Department of Energy and was authorized by any previous 
Act, exceeds by more than 25 percent the higher of— 
(A) the amount authorized for the project; or 
(B) the amount of the total estimated cost for the project 
as shown in the most recent budget justification data submitted 
to Congress. 
(2) An action described in paragraph (1) may be taken if— 
(A) the Secretary of Energy has submitted to the congres-
sional defense committees a report on the actions and the 
circumstances making such action necessary; and 
(B) a period of 30 days has elapsed after the date on 
which the report is received by the committees. 
(3) In the computation of the 30-day period under paragraph 
(2), there shall be excluded any day on which either House of 
Congress is not in session because of an adjournment of more 
than 3 days to a day certain. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2827 
(b) EXCEPTION.—Subsection (a) shall not apply to any construc-
tion project which has a current estimated cost of less than 
$5,000,000. 
SEC. 3124. FUND TRANSFER AUTHORITY. 
(a) TRANSFER TO OTHER FEDERAL AGENCIES.—^The Secretary 
of Energy may transfer funds authorized to be appropriated to 
the Department of Energy pursuant to this title to other Federal 
agencies for the performance of work for which the funds were 
authorized. Funds so transferred may be merged with and be avail-
able for the same purposes and for the same period as the authoriza-
tions of the Federal agency to which the amounts are transferred. 
(b) TRANSFER WITHIN DEPARTMENT OF ENERGY; LIMITATIONS.— 
(1) Subject to paragraph (2), the Secretary of Energy may transfer 
funds authorized to be appropriated to the Department of Energy 
pursuant to this title between any such authorizations. Amounts 
of authorizations so transferred may be merged with and be avail-
able for the same purposes and for the same period as the authoriza-
tion to which the amounts are transferred. 
(2) Not more than five percent of any such authorization may 
be transferred between authorizations under paragraph (1). No 
such authorization may be increased or decreased by more than 
five percent by a trgmsfer under such paragraph. 
(3) The authority provided by this section to transfer 
authorizations— 
(A) may only be used to provide funds for items relating 
to weapons activities necessary for national security programs 
that have a higher priority than the items from which the 
funds are transferred; and 
(B) may not be used to provide authority for an item 
that has been denied funds by Congress. 
(c) NOTICE TO CONGRESS.—^The Secretary of Energy shall 
promptly notify the Committee on Armed Services of the Senate 
and tne Committee on Nationgd Security of the House of Representa-
tives of any transfer of funds to or from authorizations under 
this title. 
SEC. 3125. AUTHORITY 
FOR CONCEPTUAL AND CONSTRUCTION 
DESIGN. 
(a) REQUIREMENT FOR CONCEPTUAL DESIGN.—(1) Subject to 
paragraph (2) and except as provided in paragraph (3), before 
submitting to Congress a request for funds for a construction project 
that is in support of a national security program of the Department 
of Energy, the Secretary of Energy shall complete a conceptual 
design for that project. The Secretary shall submit to Congress Reports, 
a report on each conceptual design completed under this paragraph. 
(2) If the estimated cost of completing a conceptual design 
for a construction project exceeds $3,000,000, the Secretary shall 
submit to Congress a request for funds for the conceptual design 
before submitting a request for funds for the construction project. 
(3) The requirement in paragraph (1) does not apply to a 
request for funds— 
(A) for a construction project the total estimated cost of 
which is less than $2,000,000; or 
(B) for emergency planning, design, £ind construction activi-
ties under section 3126. 
(b) AUTHORITY FOR CONSTRUCTION DESIGN.—(1) Within the 
amounts authorized by this title, the Secretary of Energy may 
110 STAT. 2828 
PUBLIC LAW 104-201—SEPT. 23, 1996 
carry out construction design (including architectural and engineer-
ing services) in connection with any proposed construction project 
if the total estimated cost for such design does not exceed $600,000. 
(2) If the total estimated cost for construction design in connec-
tion with any construction project exceeds $600,000, funds for such 
design must be specifically authorized by law. 
SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND 
CONSTRUCTION ACTIVITIES. 
(a) AUTHORITY.—^The Secretary of Energy may use any funds 
available to the Department of Energy pursuant to an authorization 
in this title, including those funds authorized to be appropriated 
for advance planning and construction design under sections 3101, 
3102, and 3103, to perform planning, design, and construction 
activities for any Department of Energy national security program 
construction project that, as determined by the Secretary, must 
proceed expeditiously in order to protect public health and safety, 
to meet the needs of national defense, or to protect property. 
(b) LIMITATION.—^The Secretary may not exercise the authority 
under subsection (a) in the case of any construction project until 
the Secretary has submitted to the congressional defense commit-
tees a report on the activities that the Secretary intends to carry 
out under this section and the circumstances malang such activities 
necessary. 
(c) SPECIFIC AUTHORITY.—^The requirement of section 3125(b)(2) 
does not apply to emergency planning, design, and construction 
activities conducted under this section. 
SEC. 3127. FUNDS 
AVAILABLE 
FOR 
ALL 
NATIONAL 
SECURITY 
PROGRAMS OF THE DEPARTMENT OF ENERGY. 
Subject to the provisions of appropriations Acts and section 
3121, amounts appropriated pursuant to this title for management 
and support activities and for general plant projects are available 
for use, when necessary, in connection with all national security 
programs of the Department of Energy. 
SEC. 3128. AVAILABILITY OF FUNDS. 
When so specified in an appropriations Act, amounts appro-
priated for operation and maintenance or for plant projects may 
remain available until expended. 
Subtitle C—Program Authorizations, 
Restrictions, and Limitations 
SEC. 3131. STOCKPILE STEWARDSHIP PROGRAM. 
(a) PURPOSE.—^The purpose of this section is to provide for 
the enhanced implementation of the Department of Energy stockpile 
stewardship and management program, in order to provide greater 
confidence in the safety and continuing reliability of the nuclear 
weapons stockpile. 
(b) FUNDING.—Of the funds authorized to be appropriated to 
the Department of Energy pursuant to section 3101, $85,000,000 
shall be available to enhance the Department's stockpile steward-
ship and management program for activities determined appro-
priate by the Secretary of Energy, including the following: 
(1) Enhanced surveillance of the nuclear weapons stockpile. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2829 
(2) Dual revalidation of the warheads in the nuclear 
weapons stockpile. 
(3) Stockpile life extension programs. 
(4) Production capability assurance programs for critical 
non-nuclear components. 
(5) Accelerating capability to produce prototype war 
reserve-quality plutonium pits. 
(6) Conducting subcritical tests. 
(c) REPORT.—^Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Energy shall submit to 
the congressional defense committees a report on the obligations 
the Secretary has incurred, and plans to incur, during fiscal year 
1997 for the funds made available by subsection (b). 
SEC. 3132. MANUFACTURING 
INFRASTRUCTURE 
FOR 
NUCLEAR 
WEAPONS STOCKPILE. 
(a) GENERAL PROGRAM REQUIREMENTS.—Subsection (a) of sec-
tion 3137 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 620; 42 U.S.C. 2121 
note) is amended— 
(1) by inserting "(1)" before "The Secretary of Energy"; 
(2) by redesignating paragraphs (1) through (5) as subpara-
graphs (A) through (E), respectively; and 
(3) by adding at the end the following: 
"(2) The purpose of the program carried out under paragraph 
(1) shall also be to develop manumcturing capabilities and capacities 
necessary to meet the requirements specified in the annual Nuclear 
Weapons Stockpile Review.". 
(b) REQUIRED CAPABILITIES.—Subsection (b)(3) of such section 
is amended to read as follows: 
"(3) The capabilities of the Savannah River Site relating 
to tritium recycling and fissile materials components processing 
and fabrication.". 
(c) PLAN AND REPORT.—^Not later than March 1, 1997, the 
Secretary of Energy shall submit to Congress a report containing 
a plan for carrjdng out the program established under section 
3137(a) of the National Defense Authorization Act for Fiscal Year 
1996, as amended by this section. The report shall set forth the 
obligations that the Secretary has incurred, and proposes to incur, 
during fiscal year 1997 in carrying out the program. 
(d) FUNDING.—Of the funds authorized to be appropriated 
pursuant to section 3101, $90,000,000 shall be available for carrying 
out the program established under section 3137(a) of the National 
Defense Authorization Act for Fiscal Year 1996, as so amended. 
SEC. 3133. TRITIUM PRODUCTION. 
(a) ACCELERATION OF TRITIUM PRODUCTION.—(1) The Secretary 
of Energy shall, during fiscal year 1997, make a final decision 
on the technologies to be utilized, and the accelerated schedule 
to be adopted, for tritium production in order to meet the require-
ments of the Nuclear Weapons Stockpile Memorandum relating 
to tritium production, including the new tritium production date 
of 2005 specified in the Nuclear Weapons Stockpile Memorandum. 
(2) In making the final decision, the Secretary shall take into 
account the following: 
(A) The requirements for tritium production specified in 
the Nuclear Weapons Stockpile Memorandum, including, in 
110 STAT. 2830 
PUBLIC LAW 104-201—SEPT. 23, 1996 
particular, the requirements for the "upload hedge" component 
of the nuclear weapons stockpile. 
(B) The ongoing activities of the Department of Energy 
relating to the evaluation and demonstration of technologies 
under the accelerator reactor program and the commercial light 
water reactor program. 
(b) REPORT.—(1) Not later than April 15, 1997, the Secretary 
shall submit to Congress a report that sets forth the final decision 
of the Secretary under subsection (a)(1). The report shall set forth 
in detail— 
(A) the technologies decided on under that subsection; and 
(B) the accelerated schedule for the production of tritium 
decided on under that subsection. 
(2) If the Secretary determines that it is not possible to make 
the final decision by the date specified in paragraph (1), the Sec-
retary shsJl submit to Congress on that date a report that explains 
in detail why the final decision cannot be made by that date. 
(c) NEW TRITIUM PRODUCTION FACILITY.—^The Secretary shall 
commence planning and design activities and infrastructure devel-
opment for a new tritium production facility. 
(d) IN-REACTOR TESTS.—^The Secretary may perform in-reactor 
tests of tritium target rods as part of the activities carried out 
under the commercial light water reactor program. 
(e) FUNDING.—Of the funds authorized to be appropriated to 
the 
Department 
of Energy 
pursuant 
to section 
3101(b)(1), 
$160,000,000 shall be available for activities related to tritium 
production. 
South CaroUna. 
SEC. 3134. MODERNIZATION 
AND 
CONSOLIDATION 
OF 
TRmUM 
RECYCLING FACILITIES. 
(a) IN GENERAL.—^The Secretary of Energy shall carry out 
activities at the Savannah River Site, South Carolina, to— 
(1) modernize and consolidate the facilities for recycling 
tritium from weapons; and 
(2) provide a modem tritium extraction facility so as to 
ensure that such facilities have a capacity to recycle tritium 
from weapons that is adequate to meet the requirements for 
tritium for weapons specified in the Nuclear Weapons Stockpile 
Memorandum, 
(b) FUNDING.—Of the funds authorized to be appropriated to 
the Department of Energy pursuant to section 3101, not more 
than $9,000,000 shall be available for activities under subsection 
(a). 
SEC. 3135. PRODUCTION OF fflGH EXPLOSIVES. 
No funds appropriated or otherwise made available to the 
Department of Energy for fiscal year 1997 or any prior fiscal year 
may be used to move, or prepare to move, the manufacture and 
fabrication of high explosives and energetic materials for use as 
components in nuclear weapons systems from the Pantex Plant, 
Amarillo, Texas, to any other site or facility. 
SEC. 3136. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH 
AND DEVELOPMENT PURPOSES. 
(a) LIMITATION.—No funds authorized to be appropriated or 
otherwise made available to the Department of Energy for fiscal 
year 1997 under section 3101 may be obligated or expended for 
activities under the Department of Energy Laboratory Directed 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2831 
Research and Development Program, or under any Department 
of Energy technology transfer program or cooperative research and 
development agreement, unless such activities support the national 
security mission of the Department of Energy. 
(b) ANNUAL 
REPORT.—<1) The Secretary of Energy shall 42 use 7257b. 
annually submit to the congressional defense committees a report 
on the funds expended during the preceding fiscal year on activities 
under the Department of Energy Laboratory Directed Research 
and Development Program. The purpose of the report is to permit 
an assessment of the extent to which such activities support the 
national security mission of the Department of Energy. 
(2) Each report shall be prepared by the officials responsible 
for Federal oversight of the funds expended on activities under 
the program. 
(3) Each report shall set forth the criteria utilized by the 
officials preparing the report in determining whether or not the 
activities reviewed by such officials support the national security 
mission of the Department. 
SEC. 3137. PROHIBITION 
ON 
FUNDING 
NUCLEAR 
WEAPONS 
ACTIVITIES WITH PEOPLE'S REPUBUC OF CHINA. 
(a) FUNDING PROHIBITION.—No funds authorized to be appro-
priated or otherwise available to the Department of Energy for 
fiscal year 1997 may be obligated or expended for any activity 
associated with the conduct of cooperative programs relating to 
nuclear weapons or nuclear weapons technology, including stockpile 
stewardship, safety, and use control, with the People's Republic 
of China. 
(b) REPORT.—(1) The Secretary of Energy shall prepare, in 
consultation with the Secretary of Defense, a report containing 
a description of all discussions and activities between the United 
States and the People's Republic of China regarding nuclear weap-
ons matters that have occurred before the date of the enactment 
of this Act and that are planned to occur after such date. For 
each such discussion or activity, the report shall include— 
(A) the authority under which the discussion or activity 
took or will take place; 
(B) the subject of the discussion or activity; 
(C) participants or likely participants; 
(D) the source and amount of funds used or to be used 
to pay for the discussion or activity; and 
(E) a description of the actions taken or to be taken to 
ensure that no classified information or unclassified controlled 
information was or will be revealed, and a determination of 
whether 
classified 
information 
or unclassified 
controlled 
information was revealed in previous discussions. 
(2) The report shall be submitted to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives not later than January 15, 1997. 
SEC. 3138. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP 
PROGRAMS. 
(a) FUNDING PROHIBITION.—^No funds authorized to be appro-
priated or otherwise available to the Department of Energy for 
fiscal year 1997 may be obligated or expended to conduct any 
activities 
associated 
with 
international 
cooperative 
stockpile 
stewardship. 
(b) EXCEPTION.—Subsection (a) does not apply— 
110 STAT. 2832 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(1) with respect to such activities conducted between the 
United States and the United Kingdom and between the United 
States and France; and 
(2) to activities carried out under title XV of this Act 
(relating to cooperative threat reduction with states of the 
former Soviet Union). 
SEC. 3139. TEMPORARY AUTHORITY RELATING TO TRANSFERS OF 
DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS. 
(a) 
TRANSFER 
AUTHORITY 
FOR 
DEFENSE 
ENVIRONMENTAL 
MANAGEMENT FUNDS.—^The Secretary of Energy shall provide the 
manager of each field office of the Department of Energy with 
the authority to transfer defense environmental management funds 
from a program or project under the jurisdiction of the office to 
another such program or project. Any such transfer may be made 
only once in a fiscal year to or from a program or project, and 
the amount transferred to or from a program or project may not 
exceed $5,000,000 in a fiscal year. 
(b) DETERMINATION.—^A transfer may not be carried out by 
a manager of a field office pursuant to the authority provided 
under subsection (a) unless the manager determines that such 
transfer is necessary to address a risk to health, safety, or the 
environment or to assure the most efficient use of defense environ-
mental management funds at that field office. 
(c) EXEMPTION FROM REPROGRAMMING REQUIREMENTS.—^The 
requirements of section 3121 shall not apply to transfers of funds 
pursuant to subsection (a). 
(d) NOTIFICATION.—^The Secretary of Energy, acting through 
the Assistant Secretary of Energy for Environmental Management, 
shall notify Congress of any transfer of funds pursuant to subsection 
(a) not later than 30 days after such a transfer occurs. 
(e) LIMITATION.—Funds transferred pursuant to subsection (a) 
may not be used for an item for which Congress has specifically 
denied funds or for a new program or project that has not been 
authorized by Congress. 
if) DEFINITIONS.—In this section: 
(1) The term "program or project" means, with respect 
to a field office of the Department of Energy, any of the 
following: 
(A) A project listed in subsection (b) or (c) of section 
3102 being carried out by the office. 
(B) A program referred to in subsection (a), (b), (c), 
(e)> (g)> or (h) of section 3102 being carried out by the 
office. 
(C) A project or program not described in subparagraph 
(A) or (B) that is for environmental restoration or waste 
management activities necessary for national security pro-
grams of the Department of Energy, that is being carried 
out by the office, and for which defense environmental 
management funds have been authorized and appropriated 
before the date of the enactment of this Act. 
(2) The term "defense environmental management funds" 
means funds appropriated to the Department of Energy pursu-
ant to an authorization for carrying out environmental restora-
tion and waste management activities necessary for national 
security programs. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2833 
(g) DURATION OF AUTHORITY.—^The authority provided under 
subsection (a) to a manager of a field office shall be in effect 
from the date of the enactment of this Act to September 30, 1997. 
(h) REPORT.—Not later than September 1, 1997, the Secretary 
of Energy shall submit to the congressional defense committees 
a report on the effectiveness of the authority provided under sub-
section (a) in meeting an objective specified in subsection (b). The 
report shall include recommendations on whether the duration of 
the authority, as provided in subsection (g), should be extended. 
SEC. 3140. MANAGEMENT STRUCTURE FOR 
NUCLEAR WEAPONS 42 USC 7252 
PRODUCTION FACnJTIES 
AND 
NUCLEAR WEAPONS note. 
LABORATORIES. 
(a) LIMITATION ON DELEGATION OF AUTHORITY.—(1) The Sec-
retary of Energy, in canying out national security programs, may 
delegate specific management and planning authority over matters 
relating to site operation of the facilities and laboratories covered 
by this section only to the Assistant Secretary of Energy for Defense 
Programs. Such Assistant Secretary may redelegate such authority 
only to managers of area offices of the Department of Energy 
located at such facilities and laboratories. 
(2) Nothing in this section may be construed as affecting the 
delegation by the Secretary of Energy of authority relating to report-
ing, management, and oversight of matters relating to the Depart-
ment of Energy generally, or safety, environment, and health at 
such facilities and laboratories. 
(b) 
REQUIREMENT TO CONSULT WITH AREA OFFICES.—^The 
Assistant Secretary of Energy for Defense Programs, in exercising 
any delegated authority to oversee management of matters relating 
to site operation of a facility or laboratory, shall exercise such 
authority only after direct consultation with the manager of the 
area office of the Department of Energy located at the facility 
or laboratory. 
(c) REQUIREMENT FOR DIRECT COMMUNICATION FROM AREA Reports. 
OFFICES.—^The Secretary of Energy, acting through the Assistant 
Secretary of Energy for Defense Programs, shall require the head 
of each area office of the Department of Energy located at each 
facility and laboratory covered by this section to report on matters 
relating to site operation other than those matters set forth in 
subsection (a)(2) directly to the Assistant Secretary of Energy for 
Defense Programs, without obtaining the approvsJ or concurrence 
of any other official within the Department of Energy. 
(d) DEFENSE PROGRAMS REORGANIZATION PLAN AND REPORT.— 
(1) The Secretary of Energy shall develop a plan to reorganize 
the field activities and management of the national security func-
tions of the Department of Energy. 
(2) Not later than 120 days after the date of the enactment 
of this Act, the Secretary shall submit to Congress a report on 
the plgin developed under paragraph (1). The report shall specifically 
identify all significant functions performed by the operations offices 
relating to any of the facilities and laboratories covered by this 
section and which of those functions could be performed— 
(A) by the area offices of the Department of Energy located 
at the facilities and laboratories covered by this section; or 
(B) by the Assistant Secretary of Energy for Defense 
Programs. 
110 STAT. 2834 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(3) The report also shall address and make recommendations 
with respect to other internal streamlining and reorganization 
initiatives that the Department could pursue with respect to mili-
tary or national security programs. 
Establishment. 
(e) DEFENSE PROGRAMS MANAGEMENT COUNCIL.—^The Secretary 
of Energy shall establish a council to be known as the "Defense 
Programs Management Council". The Council shall advise the Sec-
retary on policy matters, operational concerns, strategic planning, 
and development of priorities relating to the national security func-
tions of the Department of Energy. The Council shall be composed 
of the directors of the facilities and laboratories covered by this 
section and shall report directly to the Assistant Secretary of Energy 
for Defense Programs. 
(f) COVERED SITE OPERATIONS.—For purposes of this section, 
matters relating to site operation of a facility or laboratory 
include matters relating to personnel, budget, gind procurement 
in national security programs. 
AppUcability. 
(g) COVERED 
FACILITIES 
AND LABORATORIES.—^This 
section 
applies to the following facilities and laboratories of the Department 
of Energy: 
(1) The Kansas City Plant, Kansas City, Missouri. 
(2) The Pantex Plant, Amarillo, Texas. 
(3) The Y-12 Plant, Oak Ridge, Tennessee. 
(4) The Savannah River Site, Aiken, South Carolina. 
(5) Los Alamos National Laboratory, Los Alamos, New 
Mexico. 
(6) Sandia National Laboratories, Albuquerque, New 
Mexico. 
(7) Lawrence Livermore National Laboratory, Livermore, 
California. 
(8) The Nevada Test Site, Nevada. 
South CaroUna. 
SEC. 3141. ACCELERATED SCHEDULE FOR ISOLATING 
HIGH-LEVEL 
NUCLEAR WASTE AT THE DEFENSE WASTE PROCESSING 
FACILITY, SAVANNAH RIVER SITE. 
The Secretary of Energy shall accelerate the schedule for the 
isolation of high-level nuclear waste in glass canisters at the 
Defense Waste Processing Facility at the Savannah River Site, 
South Carolina, if the Secretary determines that the acceleration 
of such schedule— 
(1) will achieve long-term cost savings to the Federal 
Government; and 
(2) could accelerate the removal and isolation of high-level 
nuclear waste from long-term storage tanks at the site. 
SEC. 3142. PROCESSING AND TREATMENT OF HIGH-LEVEL NUCLEAR 
WASTE AND SPENT NUCLEAR FUEL RODS. 
(a) IN GENERAL.—(1) In order to provide for an effective 
response to requirements for managing the spent nuclear fuel 
described in paragraph (2), there shall be available to the Secretary 
of Energy, from amounts authorized to be appropriated pursuant 
to section 3102(c), the following amounts for the purposes stated: 
(A) Not more than $43,000,000 for the development and 
implementation of a program to accelerate the receipt, process-
ing (including the H-canyon restart operations), reprocessing, 
separation, reduction, deactivation, stabilization, isolation, and 
interim storage of high-level nuclesir waste associated with 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2835 
Department of Energy aluminum clad spent fuel rods, foreign 
spent fuel rods, and other nuclear materials. 
(B) Not more than $15,000,000 for the development and 
implementation of a program for the receipt, treatment, 
preparation, conditioning, interim storage, and final disposition 
of high-level nuclear waste and spent nuclear fuel (including 
naval spent nuclear fuel), non-aluminum clad fuel rods, and 
foreign fuel rods. 
(2) The spent nuclear fuel referred to in paragraph (1) is the 
following: 
(A) Spent nuclear fuel that is sent to Department of Energy 
consolidation sites pursuant to the Department of Energy Pro-
grammatic Spent Nuclear Fuel Management and Idaho 
National Engineering Laboratory Environmental Restoration 
and Waste Management Programs Final Environmental Impact 
Statement, dated April 1995. 
(B) Spent nuclear fuel described in the Interim Manage-
ment of Nuclear Materials Environmental Impact Statement, 
dated October 1995. 
(C) Other spent nuclear fuel located at the Savannah River 
Site as of the date of the enactment of this Act. 
(3) The amounts made available under paragraph (1) are in 
addition to other amounts authorized to be appropriated by section 
3102(c) for the purposes stated in subparagraphs (A) and (B) of 
that paragraph. 
(b) USE OF FUNDS FOR SETTLEMENT AGREEMENT.—^Funds made Idaho, 
available pursuant to subsection (a)(1)(B) for the Idaho National 
Engineering Laboratory shall be considered to be funds made avail-
able in partial fulfillment of the terms and obligations set forth 
in the settlement agreement entered into by the United States 
with the State of Idaho in the actions captioned Public Service 
Co. of Colorado v. Batt, Civil No. 91-0035-S-EJL, and United 
States V. Batt, Civil No. 91-0054-S-EJL, in the United States 
District Court for the District of Idaho and the consent order 
of the United States District Court for the District of Idaho, dated 
October 17, 1995, that effectuates the settlement agreement. 
(c) AMENDMENTS TO IMPLEMENTATION PLAN FOR MANAGING 
SPENT NUCLEAR FUEL AT CERTAIN SITES.—Section 3142(b) of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106; 110 Stat. 622) is amended— 
(1) by striking out "April 30, 1996" and inserting in lieu 
thereof "September 30,1996"; 
(2) by striking out "and" at the end of paragraph (3); 
(3) by striking out the period at the end of paragraph 
(4) and inserting in lieu thereof "; and"; and 
(4) by adding at the end the following new paragraph: 
"(5) an assessment of the progress made in implementing 
the programs.". 
(d) NEAR-TERM PLAN FOR PROCESSING SPENT FUEL RODS AT South Carolina. 
SAVANNAH RIVER SITE.—(1) Not later than March 15, 1997, the 
Secretary of Energy shall submit to Congress a plan for a near-
term program to process, treat, package, and dispose of spent 
nuclear fuel rods described in paragraph (2) at the Savannah River 
Site. The plan shall include cost projections and resource require-
ments for the program and identify program milestones for the 
program. 
29-194 O - 96 -
: QL 3 Part 3 
110 STAT. 2836 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(2) The spent nuclear fuel rods to be included in the program 
referred to in psiragraph (1) are the following: 
(A) Spent nuclear fuel rods produced at the Savannah 
River Site. 
(B) Spent nuclear fuel rods being sent to the site from 
other Department of Energy facilities for processing, interim 
storage, and other treatment. 
(C) Foreign spent nuclear fuel rods being sent to the site 
for processing, interim storage, and other treatment. 
(e) MULTI-YEAR PLAN FOR CLEAN-UP AT SAVANNAH RIVER 
SITE.—^The Secretary shall develop and implement a multi-year 
plan for the clean-up of nuclear waste at the Savannah River 
Site that results, or has resulted, from the following: 
(1) Nuclear weapons activities carried out at the site. 
(2) The processing, treating, packaging, and disposal of 
Department of Energy domestic and foreign spent nuclear fuel 
rods at the site. 
(f) REQUIREMENT FOR CONTINUING OPERATIONS AT SAVANNAH 
RIVER SITE.—^The Secretary shall continue operations and maintain 
a high state of readiness at the H-canyon facility and the F-canyon 
facility at the Savannah River Site, and shgdl provide technical 
staff necessary to operate and so maintain such facilities, pending 
the development and implementation of the plan referred to in 
subsection (e). 
42 use 7274n. 
SEC. 3143. PROJECTS TO ACCELERATE CLOSURE ACTIVITIES AT 
DEFENSE NUCLEAR FACILITIES. 
(a) IN GENERAL.—^The Secretary of Energy shall select and 
carry out closure-acceleration projects in accordance with this 
section. 
(b) PURPOSE.—^The purpose of a closure-acceleration project 
shall be, within a fixed period of time, to clean up or decommission 
a Department of Energy defense nuclear facility or portion thereof 
and to make the facility safe by stabilizing, consolidating, treating, 
or removing nuclear materials from the facility in order to reduce 
significantly or eliminate future costs at the facility. 
(c) ELIGIBLE PROJECTS.—(1) The Secretary of Energy may estab-
lish a closure-acceleration project as eligible for selection under 
subsection (e) by— 
(A) developing a plan for the project that meets the criteria 
under paragraph (2); and 
(B) determining that the project will achieve significant 
long-term cost savings to the Federal Grovemment from the 
baseline cost estimate made by the Department of Energy 
for the project. 
(2) A plan for a closure-acceleration project under this 
section shall— 
(A) define a clear, delineated scope of work for completion 
of the project; 
(B) demonstrate that, with respect to the site of the pro-
posed project, there is a regulatory agreement between the 
Department of Energy and other appropriate authorities for 
the implementation of environmental remediation requirements 
that would allow for successful completion of the project; 
(C) demonstrate, to the maximum extent possible, the sup-
port of State and local elected officials and the public for the 
project; 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2837 
(D) contain performance-based provisions to be included 
in the contract for the project, including— 
(i) clearly stated and results-oriented 
performance 
criteria and measures; 
(ii) appropriate incentives for the contractor to meet 
and exceed the performance 
criteria effectively 
and 
efficiently; 
(iii) appropriate criteria and incentives for the con-
tractor to seek and engage subcontractors who may more 
effectively and efficiently perform either unique and techno-
logically challenging tasks or routine and interchangeable 
services; 
(iv) specific incentives for cost savings; 
(v) financial accountability; and 
(vi) when appropriate, reduction of fee for failure to 
meet minimum performance criteria and standards; 
(E) demonstrate that the project will use new and innova-
tive cleanup and waste management technology with potential 
for application to other locations and facilities without requiring 
the development of new technologies; and 
(F) demonstrate that the project can be completed within 
10 years from the date of its selection. 
(d) PROGRAM ADMINISTRATION.—^The Secretary of Energy, act-
ing through the Assistant Secretary for Environmental Manage-
ment, shall implement a program to carry out the provisions of 
this section. 
(e) SELECTION OF PROJECTS.—(1) The Secretary of Energy shall 
select closure-acceleration projects to be carried out under this 
section from among those projects established as eligible under 
subsection (c) that will result in the most significant long-term 
cost savings to the Government and the most significant reduction 
of imminent risk. 
(2) For each project selected, the Secretary shall submit to Reports. 
Congress a report setting forth the reasons why the project was 
selected, based on the criteria under subsection (c)(2) and paragraph 
(1) of this subsection. 
(f) MULTIYEAR CONTRACTS.—^Notwithstanding section 304B(d) 
of the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 254c(d)), the Secretary of Energy may enter into multi-
year contracts to carry out projects selected under this section 
for up to 10 program years. 
(g) FUNDING.—(1) In the budget submitted to Congress under President, 
section 1105(a) of title 31, United States Code, each year, the 
President shall set forth funds for carrying out closure-acceleration 
projects under this section as a separate item in the environmental 
restoration and waste management account of the Department of 
Energy budget. 
(2) Funds appropriated for purposes of carrying out projects 
under this section shall remain available until expended. 
(3) If a closure-acceleration project is being carried out at 
a defense nuclear facility with funds appropriated for such projects, 
the Secretary of Energy may not reduce the funds otherwise allo-
cated to that defense nuclear facility for environmental restoration 
and waste management by reason of the funds being used for 
the project at that facility. 
(4) Funds appropriated for purposes of carrying out projects 
under this section may not be used for an item for which Congress 
110 STAT. 2838 
PUBLIC LAW 104-201—SEPT. 23, 1996 
has specifically denied funds or for a new program or project that 
has not been authorized by Congress. 
(h) ANNUAL REPORT.—^The Secretary of Energy shall submit 
each year to Congress a report on the status of each closure-
acceleration project being carried out under this section. The report 
shall include, for each such project, the following: 
(1) A description of the funding already provided for the 
project. 
(2) A description of the extent of the cleanup, decommis-
sioning, stabilization, consolidation, treatment, or removal 
activities completed. 
(3) A comparison of the actual results of the project to 
the original proposal and the actual cost of the project to 
the originally proposed cost. 
(4) A description of the funding needed in future fiscal 
years for completion of the project. 
(i) DURATION OF PROGRAM.—^No closure-acceleration project 
selected under this section may be carried out afler the expiration 
of the 15-year period beginning on the date of the enactment of 
this Act. 
(j) SAVINGS PROVISION.—^Nothing in this section may be con-
strued to affect statutory requirements for an environmental res-
toration or waste management activity or project or to modify 
or otherwise affect applicable statutory or regulatory environmental 
restoration and waste management requirements, including sub-
stantive standards intended to protect public health and the 
environment, nor shall anything in this section be construed to 
preempt or impair any local land use planning or zoning authority 
or State authority. 
SEC. 
3144. PAYMENT OF COSTS 
OF OPERATION AND MAINTENANCE 
OF 
INFRASTRUCTURE 
AT 
NEVADA 
TEST 
SITE. 
Effective date. 
Notwithstanding any other provision of law and effective as 
of September 30, 1996, the costs associated with operating and 
maintaining the infrastructure at the Nevada Test Site, Nevada, 
with respect to any activities initiated at the site afler that date 
by the Department of Defense pursuant to a work-for-others agree-
ment may be peiid for from funds authorized to be appropriated 
to the Department of Energy for activities at the Nevada Test 
Site. 
Subtitle D—Other Matters 
SEC. 3151. REPORT ON PLUTONIUM PIT PRODUCTION AND RE-
MANUFACTURING PLANS. 
(a) REPORT REQUIREMENT.—The Secretary of Energy shall sub-
mit to the congressional defense committees a report on plans 
for achieving the capability to produce and remanufacture pluto-
nium pits. The report shall include a description of the baseline 
plan of the Department of Energy for achieving such capability, 
including the following: 
(1) The funding necessary, by fiscal year, to achieve the 
capability, 
(2) The schedule necessary to achieve the capability, includ-
ing important technical and programmatic milestones. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2839 
(3) Siting, capacity for expansion, and other issues included 
in the baseline plan. 
(b) DEADLINE.—^The report required by subsection (a) shall be 
submitted not later than 60 days after the date of the enactment 
of this Act. 
SEC. 3152. AMENDMENTS RELATING TO BASELINE ENVIRONMENTAL 
MANAGEMENT REPORTS. 
Section 3153 of the National Defense Authorization Act for 
Fiscal Year 1994 (42 U.S.C. 7274k) is amended— 
(1) in subsection (b)— 
(A) by striking out the first word in the heading and 
inserting in lieu thereof "BIENNIAL"; and 
(B) in paragraph (2)(B), by inserting before "year after 
1995" the following: "odd-numbered"; and 
(2) in subsection (d)— 
(A) by striking out the first word in the heading and 
inserting in lieu thereof "BIENNIAL"; 
(B) in paragraph (1)(B), by striking out "in each year 
thereafter" and inserting in lieu thereof "in each odd-num-
bered year thereafter"; and 
(C) in paragraph (2)(A)— 
(i) in the matter preceding clause (i), by striking 
out "fiscal year immediately" and inserting in lieu 
thereof "two fiscal years immediately'; and 
(ii) in clause (ii), by striking out "prior fiscal year" 
and inserting in lieu thereof "prior fiscal years". 
SEC. 3153. REQUIREMENT TO DEVELOP FUTURE USE PLANS FOR 
ENVIRONMENTAL MANAGEMENT PROGRAM. 
(a) AUTHORITY TO DEVELOP FUTURE USE PLANS.—The Sec-
retary of Energy may develop future use plans for any defense 
nuclear facility at which environmental restoration and waste 
management activities are occurring. 
(b) REQUIREMENT TO DEVELOP FUTURE USE PLANS.—-The Sec-
retary shall develop a future use plan for each of the following 
defense nuclear facilities: 
(1) Hanford Site, Richland, Washington. 
(2) Rocky Flats Plant, Golden, Colorado. 
(3) Savannsih River Site, Aiken, South Carolina. 
(4) Idaho National Engineering Laboratory, Idaho. 
(c) CITIZEN ADVISORY BOARD.—(1) At each defense nuclear facil-
ity for which the Secretary of Energy intends or is required to 
develop a future use plan under this section and for which no 
citizen advisory board has been established, the Secretary shall 
establish a citizen advisory board. 
(2) The Secretary may authorize the manager of a defense 
nuclear facility for which a future use plan is developed under 
this section (or, if there is no such manager, an appropriate official 
of the Department of Energy designated by the Secretary) to pay 
routine administrative expenses of a citizen advisory board estab-
lished for that facility. Such payments shall be made from funds 
available to the Secretary for program direction in carrying out 
environmental restoration and waste management activities nec-
essary for national security programs. 
(d) 
REQUIREMENT 
TO 
CONSULT 
WITH 
CITIZEN 
ADVISORY 
BOARD.—In developing a future use plan under this section with 
respect to a defense nuclear facility, the Secretary of Energy shall 
42 use 7274k 
note. 
Establishment. 
110 STAT. 2840 
PUBLIC LAW 104-201—SEPT. 23, 1996 
consult with a citizen advisory board established pursuant to sub-
section (c) or a similar advisory board already in existence as 
of the date of the enactment of this Act for such facility, affected 
local governments (including any local future use redevelopment 
authorities), and other appropriate State agencies. 
(e) 50-YEAR PLANNING PERIOD.—A future use plan developed 
under this section shall cover a period of at least 50 years. 
(f) DEADLINES.—For each facility listed in subsection (b), the 
Secretary of Energy shall develop a draft future use plan by October 
1, 1997, and a final future use plan by March 15, 1998. 
(g) REPORT.—^Not later than 60 days after completing develop-
ment of a final plan for a site listed in subsection (b), the Secretary 
of Energy shall submit to Congress a report on the plan. The 
report shall describe the plan and contain such findings and rec-
ommendations with respect to the site as the Secretary considers 
appropriate. 
(h) SAVINGS PROVISIONS.—(1) Nothing in this section, or in 
a future use plan developed under this section with respect to 
a defense nuclear facility, shall be construed as requiring any 
modification to a future use plan with respect to a defense nuclear 
facility that was developed before the date of the enactment of 
this Act. 
(2) Nothing in this section may be construed to affect statutory 
requirements for an environmental restoration or waste manage-
ment activity or project or to modify or otherwise affect applicable 
statutory or regulatory environmental restoration and waste 
management 
requirements, 
including 
substantive 
standards 
intended to protect public health and the environment, nor shall 
anything in this section be construed to preempt or impair any 
local land use planning or zoning authority or State authority. 
SEC. 3154. REPORT ON DEPARTMENT OF ENERGY LIABILITY AT 
DEPARTMENT SUPERFUND SITES. 
(a) STUDY.—The Secretary of Energy shall, using funds author-
ized to be appropriated to the Department of Energy by section 
3102, carry out a study to determine the extent and valuation 
of the injury to, destruction of, or loss of natural resources under 
section 107(a)(4)(C) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9607(a)(4)(C)) 
at each site controlled or operated by the Department that is 
or is anticipated to become subject to the provisions of that Act. 
(b) CONDUCT OF STUDY.—(1) The Secretary shall carry out 
the study using personnel of the Department or by contract with 
an appropriate private entity. 
(2) In determining the extent and valuation of the injury to, 
destruction of, or loss of natural resources for purposes of the 
study, the Secretary shall— 
(A) treat the Department as a private person liable for 
response, removal, and remediation costs and damages under 
section 107(a)(4) of that Act (42 U.S.C. 9607(a)(4)) and subject 
to an action for damages by public trustees of natural resources 
under section 107(f) of that Act (42 U.S.C. 9607(f)) or by any 
other person pursuant to section 107(e) or 113(f) of that Act 
(42 U.S.C. 9607(e) and 9613(f)); and 
(B) determine the value of natural resource damages associ-
ated with each site in accordance with all regulations promul-
gated under section 301(c) of that Act (42 U.S.C. 9651(c)). 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2841 
(c) REPORT.—^Not later than 90 days after the date of the 
enactment of this Act, the Secretary shall submit a report on 
the study carried out under subsection (a) to the following 
committees: 
(1) The Committees on Environment and Public Works, 
Armed Services, and Energy and Natural Resources of the 
Senate. 
(2) The Committees on Commerce, National Security, 
Transportation and Infrastructure, and Resources of the House 
of Representatives. 
SEC. 3155. REQUIREMENT FOR ANNUAL FIVE-YEAR BUDGET FOR THE 
NATIONAL SECURITY PROGRAMS OF THE DEPARTMENT 
OF ENERGY. 
(a) REQUIREMENT.—^The Secretary of Energy shall prepare each 
year a budget for the national security programs of the Department 
of Energy for the five-year period beginning in the year the budget 
is prepared. Each budget shsill contain the estimated expenditures 
and proposed appropriations necessary to support the programs, 
projects, and activities of the national security programs during 
the five-year period covered by the budget and shall be at a level 
of detail comparable to that contained in the budget submitted 
by the President to Congress under section 1105 of title 31, United 
States Code. 
(b) SUBMITTAL.—^The Secretary shall submit each year to the 
congressional defense committees the budget required under sub-
section (a) in that year at the same time as the President submits 
to Congress the budget for the coming fiscal year pursuant to 
such section 1105. 
SEC. 3156. REQUIREMENTS FOR DEPARTMENT OF ENERGY WEAPONS 
ACTIVITIES BUDGETS FOR FISCAL YEARS AFTER FISCAL 
YEAR 1997. 
(a) IN GENERAL.—^The weapons activities budget of the Depart-
ment of Energy for any fiscal year after fiscal year 1997 shall— 
(1) set forth with respect to each of the activities under 
the budget (including stockpile stewardship, stockpile manage-
ment, and program direction) the funding requested to carry 
out each project or activity that is necessary to meet the 
requirements of the Nuclear Weapons Stockpile Memorandum; 
and 
(2) identify specific infrastructure requirements arising 
from the Nuclear Posture Review, the Nuclear Weapons Stock-
pile Memorandum, and the programmatic and technical 
requirements associated with the review and memorandum. 
(b) REQUIRED DETAIL.—The Secretary of Energy shall include 
in the materials that the Secretary submits to Congress in support 
of the budget for any fiscal year after fiscal year 1997 that is 
submitted by the President pursuant to section 1105 of title 31, 
United States Code, the following: 
(1) A long-term program plan, and a near-term program 
plan, for the certification and stewardship of the nuclear 
weapons stockpile. 
(2) An assessment of the effects of the plans referred to 
in paragraph (1) on each nuclear weapons laboratory and each 
nuclear weapons production plant. 
(c) DEFINITIONS.—In this section: 
42 use 7271b. 
42 use 7271c. 
110 STAT. 2842 
PUBLIC LAW 104-201—SEPT. 23, 1996 
42 use 72740. 
(1) The term "Nuclear Posture Review" means the Depart-
ment of Defense Nuclear Posture Review as contained in the 
report of the Secretary of Defense to the President and Congress 
dated February 19, 1995, or in subsequent such reports. 
(2) The term "nuclear weapons laboratory" means the 
following: 
(A) 
Lawrence 
Livermore 
National 
Laboratory, 
California. 
(B) Los Alamos National Laboratory, New Mexico. 
(C) Sandia National Laboratories. 
(3) The term "nuclear weapons production plant" means 
the following: 
(A) The Pantex Plant, Texas. 
(B) The Savannah River Site, South Carolina. 
(C) The Kansas City Plant, Missouri, 
(D) The Y-12 Plant, Oak Ridge, Tennessee. 
SEC. 3157. REPEAL OF REQUIREMENT RELATING TO ACCOUNTING 
PROCEDURES FOR DEPARTMENT OF ENERGY FUNDS. 
Section 3151 of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3089) is repealed. 
SEC. 3158. UPDATE OF REPORT ON NUCLEAR TEST 
READINESS 
POSTURES. 
Not later than June 1, 1997, the Secretary of Energy shall 
submit to Congress a report which updates the report submitted 
by the Secretary under section 3152 of the National Defense 
Authorization Act for Fiscal Year 1996 (Pubhc Law 104-106; 110 
Stat. 623). The updated report shall include the matters specified 
under such section, current as of the date of the updated report. 
SEC. 3159. REPORTS 
ON CRITICAL 
DIFFICULTIES 
AT 
NUCLEAR 
WEAPONS 
LABORATORIES 
AND 
NUCLEAR 
WEAPONS 
PRODUCTION PLANTS. 
(a) REPORTS BY HEADS OF LABORATORIES AND PLANTS.—In the 
event of a difficulty at a nuclear weapons laboratory or a nuclear 
weapons production plant that has a significant bearing on con-
fidence in the safety or reliability of a nuclear weapon or nuclear 
weapon type, the head of the laboratory or plant, as the case 
may be, shall submit to the Assistant Secretary of Energy for 
Defense Programs a report on the difficulty. The head of the labora-
tory or plant shall submit the report as soon as practicable after 
discovery of the difficulty. 
(b) TRANSMITTAL BY ASSISTANT SECRETARY.—AS soon as prac-
ticable after receipt of a report under subsection (a), the Assistant 
Secretary shall transmit the report (together with the comments 
of the Assistant Secretary) to the congressional defense committees 
and to the Secretary of Energy and the Secretary of Defense. 
(c) REPORTS BY NUCLEAR WEAPONS COUNCIL.—Section 179 of 
title 10, United States Code, is amended— 
(1) by redesignating subsection (e) as subsection (f); and 
(2) by inserting after subsection (d) the following new sub-
section (e): 
"(e) In addition to the responsibilities set forth in subsection 
(d), the Council shall also submit to Congress a report on any 
analysis conducted by the Council with respect to difficulties at 
nuclear weapons laboratories or nuclear weapons production plants 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2843 
that have significant bearing on confidence in the safety or reliabil-
ity of nuclear weapons or nuclear weapon types.", 
(d) DEFINITIONS.—^In this section: 
(1) The term "nuclear weapons laboratory" means the 
following: 
(A) 
Lawrence 
Livermore 
National 
Laboratory, 
California. 
(B) Los Alamos National Laboratory, New Mexico. 
(C) Sandia National Laboratories. 
(2) The term "nuclear weapons production plant" means 
the following: 
(A) The Pantex Plant, Texas. 
(B) The Savannah River Site, South Carolina. 
(C) The Kansas City Plant, Missouri. 
(D) The Y-12 Plant, Oak Ridge, Tennessee. 
SEC. 3160. EXTENSION 
OF APPUCABIUTY OF NOTICE-AND-WATT 
REQUIREMENT REGARDING PROPOSED 
COOPERATION 
AGREEMENTS. 
Section 3155(b) of the National Defense Authorization Act for 
Fiscal Year 1995 (42 U.S.C. 2153 note) is amended by striking 
out "October 1, 1996" and inserting in lieu thereof "October 1, 
1997". 
SEC. 3161. SENSE OF SENATE RELATING TO REDESIGNATION 
OF 
DEFENSE ENVIRONMENTAL RESTORATION AND WASTE 
MANAGEMENT PROGRAM. 
(a) SENSE OF SENATE.—^It is the sense of the Senate that 
the program of the Department of Energy known as the Defense 
Environmental Restoration and Waste Management Program, and 
also known as the Environmental Management Program, be redesig-
nated as the Defense Nuclear Waste Management Program of the 
Department of Energy. 
(b) REPORT ON REDESIGNATION.—^Not later than January 31, 
1997, the Secretary of Energy shall submit to the congressional 
defense committees a report on the costs and other difficulties, 
if any, associated with the following: 
(1) The redesignation of the program known as the Defense 
Environmental Restoration and Waste Management Program, 
and also known as the Environmental Management Program, 
as the Defense Nuclear Waste Management Program of the 
Department of Energy. 
(2) The redesignation of the Defense 
Environmental 
Restoration and Waste Management Account as the Defense 
Nuclear Waste Management Account. 
SEC. 3162. COMMISSION ON MAINTAINING UNITED STATES NUCLEAR 
42 USC 2121 
WEAPONS EXPERTISE. 
note. 
(a) ESTABLISHMENT.—^There is hereby established a commission 
to be known as the "Commission on Maintaining United States 
Nuclear Weapons Expertise" (in this section referred to as the 
"Commission"). 
(b) ORGANIZATIONAL MATTERS.—<1XA) The Commission shall 
be composed of eight members appointed from among individuals 
in the public and private sectors who have significant experience 
in matters relating to nuclear weapons, as follows: 
(i) Two shall be appointed by the majority leader of the 
Senate (in consultation with the minority leader of the Senate). 
110 STAT. 2844 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(ii) One shall be appointed by the minority leader of the 
Senate (in consultation with the majority leader of the Senate). 
(iii) Two shall be appointed by the Speaker of the House 
of Representatives (in consultation with the minority leader 
of the House of Representatives). 
(iv) One shall be appointed by the minority leader of the 
House of Representatives (in consultation with the Speaker 
of the House of Representatives). 
(v) Two shall be appointed by the Secretary of Energy. 
(B) Members shall be appointed for the life of the Commission. 
Any vacancy in the Commission shall not affect its powers, but 
shall be filled in the same manner as the original appointment. 
(C) The chairman of the Commission shall be designated from 
among the members of the Commission appointed under subpara-
graph (A) by the majority leader of the Senate, in consultation 
with the Speaker of the House of Representatives, the minority 
leader of the Senate, and the minority leader of the House of 
Representatives. 
Deadline. 
(D) Members shall be appointed not later than 60 days after 
the date of the enactment of this Act. 
Procedures. 
(2) The members of the Commission shall establish procedures 
for the activities of the Commission, including procedures for calling 
meetings, requirements for quorums, and the manner of taking 
votes. 
(c) DUTIES.—(1) The Commission shall develop a plan for 
recruiting and retaining within the Department of Energy nuclear 
weapons complex such scientific, engineering, and technical person-
nel as the Commission determines appropriate in order to permit 
the Department to maintain over the long term a safe and reliable 
nuclear weapons stockpile without engaging in underground testing. 
(2) In developing the plan, the Commission shall— 
(A) identify actions that the Secretary may undertake to 
attract qualified scientific, engineering, and technical personnel 
to the nuclear weapons complex of the Department; and 
(B) review and recommend improvements to the on-going 
efforts of the Department to attract such personnel to the 
nuclear weapons complex. 
(d) REPORT.—^Not later than March 15, 1998, the Commission 
shsdl submit to the Secretary and to Congress a report containing 
the plan developed under subsection (c). The report may include 
recommendations for legislation and administrative action. 
(e) COMMISSION PERSONNEL MATTERS.—(1) Each member of 
the Commission who is not an officer or employee of the FedersJ 
Government shall be compensated at a rate equal to the daily 
equivalent of the annual rate of basic pay prescribed for level 
IV of the Executive Schedule under section 5315 of title 5, United 
States Code, for each day (including travel time) during which 
such member is engaged in the performance of the duties of the 
Commission. All members of the Commission who are officers or 
employees of the United States shall serve without compensation 
in addition to that received for their services as officers or employees 
of the United States. 
(2) The members of the Commission shall be allowed travel 
expenses, including per diem in lieu of subsistence, at rates author-
ized for employees of agencies under subchapter I of chapter 57 
of title 5, United States Code, while away from their homes or 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2845 
regular places of business in the performance of services for the 
Commission. 
(3) The Commission may, without regard to the civil service 
laws and regulations, appoint and terminate such personnel as 
may be necessary to enable the Commission to perform its duties. 
The Commission may fix the compensation of the personnel of 
the Commission without regard to the provisions of chapter 51 
and subchapter III of chapter 53 of title 5, United States Code, 
relating to classification of positions and General Schedule pay 
rates. 
(4) Any Federal Government employee may be detailed to the 
Commission without reimbursement, and such detail shall be with-
out interruption or loss of civil service status or privilege. 
(f) TERMINATION.—^The Commission shall terminate 30 days 
after the date on which the Commission submits its report under 
subsection (d). 
(g) APPLICABILITY OF F A C A — T h e provisions of the Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
activities of the Commission. 
(h) FUNDING.—Of the amounts authorized to be appropriated 
pursuant to section 3101, not more than $1,000,000 shall be avail-
able for the activities of the Commission under this section. Funds 
made available to the Commission under this section shall remain 
available until expended. 
SEC. 3163. SENSE OF CONGRESS REGARDING RELIABILITY AND 
SAFETY OF REMAINING NUCLEAR FORCES. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The United States is committed to proceeding with 
a robust, science-based stockpile stewardship program with 
respect to production of nuclear weapons, and to maintaining 
nuclear weapons production capabilities and capacities, that 
are adequate— 
(A) to ensure the SEifety, reliability, and performance 
of the United States nuclear arsenal; and 
(B) to meet such changing national security require-
ments as may result from international developments or 
technical problems with nuclear warheads. 
(2) The United States is committed to reestablishing and 
maintaining production facilities for nuclear weapons compo-
nents at levels that are sufficient— 
(A) to satisfy requirements for the safety, reliability, 
and performance of United States nuclear weapons; and 
(B) to demonstrate and sustain production capabilities 
and capacities. 
(3) The United States is committed to maintaining the 
nuclear weapons laboratories and protecting core nuclear 
weapons competencies. 
(4) The United States is committed to ensuring rapid access 
to a new production source of tritium within the next decade, 
as it currently has no meaningful capability to produce tritium, 
a component that is essential to the performance of modem 
nuclear weapons. 
(5) The United States reserves the right, consistent with 
United States law, to resume underground nuclear testing to 
maintain confidence in the United States stockpile of nuclear 
weapons if warhead design fiaws or aging of nuclear weapons 
110 STAT. 2846 
PUBLIC LAW 104-201—SEPT. 23, 1996 
result in problems that a robust stockpile stewardship program 
cannot solve. 
(6) The United States is committed to funding the Nevada 
Test Site at a level that maintains the ability of the United 
States to resume underground nuclear testing within one year 
after a national decision to do so is made. 
(7) The United States reserves the right to invoke the 
supreme national interest of the United States and withdraw 
from any future arms control agreement to limit underground 
nuclear testing. 
(b) 
SENSE 
OF CONGRESS 
REGARDING 
PRESIDENTIAL 
CON-
SULTATION WITH CONGRESS.—It is the sense of Congress that the 
President should consult closely with Congress regarding United 
States policy and practices to ensure confidence in the safety, reli-
ability, and performance of the nuclear stockpile of the United 
States. 
President. 
(c) SENSE OF CONGRESS REGARDING NOTIFICATION AND CON-
SULTATION.—It is the sense of Congress that, upon a determination 
by the President that a problem with the safety, reliability, or 
performance of the nuclear stockpile has occurred and that the 
problem cannot be corrected within the stockpile stewardship pro-
gram, the President shall— 
(1) immediately notify Congress of the problem; and 
(2) submit to Congress in a timely manner a plan for 
corrective action with respect to the problem, including— 
(A) a technical description of the activities required 
under the plan; and 
(B) if underground testing of nuclear weapons would 
assist in such corrective action, an assessment of the advis-
ability of withdrawing from any treaty that prohibits under-
ground testing of nuclear weapons. 
Ohio. 
SEC. 3164. STUDY ON WORKER PROTECTION AT THE MOUND FACIUTY. 
(a) REPORT.—Not later than March 15, 1997, the Secretary 
of Energy shall submit to the congressional defense committees 
a report regarding the status of projects and programs to improve 
worker safety and health at the Mound Facility in Miamisburg, 
Ohio. 
(b) MATTERS COVERED.—The report shall include the following: 
(1) The status of actions completed in fiscal year 1996. 
(2) The status of actions completed or proposed to be 
completed in fiscal years 1997 and 1998. 
(3) A description of the fiscal year 1998 budget request 
for worker safety and health at the Mound Facility. 
(4) An accounting of expenditures for worker safety and 
health at the Mound Facility by fiscal year from fiscal year 
1994 through and including fiscal year 1996. 
SEC. 3165. FISCAL YEAR 1998 FUNDING FOR GREENVILLE ROAD 
IMPROVEMENT PROJECT, LIVERMORE, CALIFORNIA. 
(a) FUNDING.—^The Secretary of Energy shall include in the 
budget for fiscal year 1998 submitted by the Secretary of Energy 
to the Office of Management and Budget a request for sufficient 
funds to pay the United States portion of the cost of transportation 
improvements under the Greenville Road Improvement Project, 
Livermore, California. 
(b) COOPERATION WITH LIVERMORE, CALIFORNIA.—^The Sec-
retary shall work with the city of Livermore, California, to deter-
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2847 
mine the cost of the transportation improvements referred to in 
subsection (a). 
SEC. 3166. FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS 
CRITICAL 
TO 
DEPARTMENT 
OF ENERGY 
NUCLEAR 
WEAPONS COMPLEX. 
(a) FUNDING.—Subject to subsection (b), of the funds authorized 
to be appropriated pursuant to section 3101(b), $5,000,000 may 
be used for conducting the fellowship program for the development 
of skills critical to the ongoing mission of the Department of Energy 
nuclear weapons complex required by section 3140 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 621; 42 U.S.C. 2121 note). 
(b) NOTICE AND WAIT.—^The Secretary of Energy may not obli-
gate or expend funds under subsection (a) for the fellowship program 
referred to in that subsection until— 
(1) 
the 
Secretary 
submits 
to 
Congress 
a 
report Reports, 
setting forth— 
(A) the actions the Department has taken to implement 
the fellowship program; 
(B) the amount the Secretary proposes to obligate; 
(C) the purposes for which such amount will be 
obligated; and 
(2) a period of 21 days elapses from the date of the receipt 
of the report by Congress. 
Subtitle E—^Defense Nuclear 
Environmental Cleanup and Management 
SEC. 3171. PURPOSE. 
The purpose of this subtitle is to provide for the expedited 
environmental restoration and waste management of defense 
nuclear facilities through the use of cost-effective management 
mechanisms and innovative technologies. 
SEC. 3172. APPLICABILITY. 
(a) IN GENERAL.—^The provisions of this subtitle shall apply 
to the following defense nuclear facilities: 
(1) Any defense nuclear facility for which the fiscal year 
1996 environment£d management budget was $350,000,000 or 
more. 
(2) Any other defense nuclear facility if— 
(A) the chief executive officer of the State in which 
the facility is located submits to the Secretary a request 
that the facility be covered by the provisions of this sub-
title; and 
(B) the Secretary approves the request. 
(b) LIMITATION.—^The Secretary may not approve a request 
under subsection (a)(2) until 60 days after the date on which the 
Secretary notifies Congress of the Secretary's receipt of the request. 
SEC. 3173. SITE MANAGER. 
(a) APPOINTMENT.—(1) Subject to paragraph (2), the Secretary 
shall expeditiously appoint a Site Manager for each defense nuclear 
facility (in this subtitle referred to as the "Site Manager"). 
42 use 7274k 
note. 
42 use 7274k 
note. 
Notification. 
42 use 7274k 
note. 
29-194 O - 96 - 37 : QL 3 Part 3 
110 STAT. 2848 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(2) In the case of a defense nuclear facility at which another 
program, in addition to environmental management operations, is 
carried out, and such other program is subject to management 
by a site manager, field office manager, or operations office man-
ager, the Secretary shall appoint such manager to be the Site 
Manager for such facility for purposes of this subtitle. 
(b) AUTHORITY.—(1) In addition to other authorities provided 
for in this Act, the Secretary may delegate to the Site Manager 
of a defense nuclear facility authority to oversee and direct 
environmental management operations at the facility, including 
the authority to— 
(A) enter into and modify contractual agreements to 
enhance environmental restoration and waste management at 
the facility; 
(B) request that the Department headquarters submit to 
Congress a reprogramming package shifting funds among 
accounts in order to facilitate the most efficient and timely 
environmental restoration and waste management of the facil-
ity, and, in the event that the Department headquarters does 
not act upon the request within 60 days, submit such request 
to the appropriate congressional committees for review; 
(C) subject to paragraph (2), negotiate amendments to 
environmental agreements for the Department; 
(D) manage Department personnel at the facility; 
(E) consider the costs, risk reduction benefits, and other 
benefits for the purposes of ensuring protection of human health 
and the environment or safety, with respect to any environ-
mental 
remediation 
activity the 
cost 
of which 
exceeds 
$25,000,000; and 
(F) have assessments prepared for environmental restora-
tion activities (in several documents or a single document, 
as determined by the Site Manager). 
(2) In using the authority described in paragraph (1)(C), a 
^^ 
Site Manager may not negotiate an amendment that is expected 
to result in additional life cycle costs to the Department without 
the approval of the Secretary. 
(3) In using any authority described in paragraph (1), a Site 
Manager of a facility shall consult with the State where the facility 
is located and the advisory board for the facility. 
(4) The delegation of any authority pursuant to this subsection 
shall not be construed as restricting the Secretary's authority to 
delegate other authorities as necessary. 
(c) INFORMATION TO SECRETARY.—^The Site Manager of a 
defense nuclear facility shall regularly inform the Secretary, 
Congress, and the advisory board for the facility of the progress 
made by the Site Manager to achieve the expedited environmental 
restoration and waste management of the facility. 
42 use 7274k 
SEC. 3174. DEPARTMENT OF ENERGY ORDERS. 
An order imposed after the date of the enactment of this Act 
relating to the execution of environmental restoration, waste 
management, or technology development activities at a defense 
nuclear facility under the Atomic Energy Act of 1954 (42 U.S.C. 
2011 et seq.) may be imposed by the Secretary at the defense 
nuclear facility only if the Secretary finds that the order is necessary 
for the protection of human health and the environment or safety. 
^ p l ^ -
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2849 
the fulfillment of current legal requirements, or the conduct of 
critical administrative functions. 
SEC. 3175. DEPLOYMENT OF TECHNOLOGY FOR REMEDLVTION OF 
DEFENSE NUCLEAR WASTE. 
(a) IN GENERAL.—^The Site Manager of each defense nuclear 
facility shall promote the deployment of innovative environmental 
technologies for remediation of defense nuclear waste at the facility. 
(b) CRITERIA.—^To carry out subsection (a), the Site Manager 
of a defense nuclear facility shall establish a program at the facility 
for the testing and deployment of innovative environmental 
technologies for the remediation of defense nuclear waste at the 
facility. In establishing such a program, the Site Manager may— 
(1) establish a simplified, standardized, and timely process 
for the testing, verification, certification, and deployment of 
environmental technologies; 
(2) solicit applications to test and deploy environmental 
technologies suitable for environmental restoration and waste 
management activities at the facility, including prevention, 
control, 
characterization, 
treatment, 
and 
remediation 
of 
contamination; 
(3) consult and cooperate with the heads of existing pro-
grams at the facility for the verification and certification of 
environmental technologies at the facility; 
(4) pay the costs of the demonstration of such technologies; 
(5) enter into contracts £ind other agreements with other 
public and private entities to deploy environmental technologies 
at the facility; and 
(6) include incentives, such as product performsmce speci-
fications, in contracts to encourage the implementation of 
innovative environmental technologies. 
(c) FOLLOW-ON CONTRACTS.—(1) If the Secretary and a person 
demonstrating a technology under the program enter into a contract 
for remediation of nuclear waste at a defense nuclear facility covered 
by this subtitle, or at any other Department facility, as a follow-
on to the demonstration of the technology, the Secretary shall 
ensure that the contract provides for the Secretary to recoup from 
the contractor the costs incurred by the Secretary pursuant to 
subsection (b)(6) for the demonstration. 
(2) No contract between the Department and a contractor for 
the demonstration of technology under subsection (b) may provide 
for reimbursement of the costs of the contractor on a cost plus 
fee basis. 
(d) SAFE HARBORS.—In the case of an environmental technology 
tested, verified, certified, and deployed at a defense nuclear facility 
under a program established under subsection (b), the Site Manager 
of another defense nuclear facility may request the Secretary to 
waive or limit contractual or Department regulatory requirements 
that would otherwise apply in implementing the same environ-
mental technology at such other facility. 
SEC. 3176. PERFORMANCE-BASED CONTRACTING. 
(a) PROGRAM.—^The Secretary shall develop and implement a 
program for performance-based contracting for contracts entered 
into for environmental remediation at defense nuclear facilities. 
The program shall ensure that, to the maximum extent practicable 
and appropriate, such contracts include the following: 
42 use 7274k 
note. 
42 use 7274k 
note. 
110 STAT. 2850 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Reports. 
42 use 7274k 
note. 
42 use 7274k 
note. 
(1) Clearly stated and results oriented performance criteria 
and measures. 
(2) Appropriate incentives for contractors to meet or exceed 
the performance criteria effectively and efficiently. 
(3) Appropriate criteria and incentives for contractors to 
seek and engage subcontractors who may more effectively and 
efficiently perform either unique and technologically challeng-
ing tasks or routine and interchangeable services. 
(4) Specific incentives for cost savings. 
(5) Financial accountability. 
(6) When appropriate, reduction of fee for failure to meet 
minimum performance criteria and standards. 
(b) 
CRITERIA 
AND MEASURES.—Performance 
criteria 
and 
measures should take into consideration, at a minimum, the follow-
ing: managerial control; elimination or reduction of risk to public 
health and the environment; workplace safety; financial control; 
goal-oriented work scope; use of innovative and alternative tech-
nologies and techniques that result in cleanups being performed 
less expensively, more quickly, and within quality parameters; and 
performing within benchmark cost estimates. 
(c) CONSULTATION.—In implementing this section, the Secretary 
shall consult with interested parties. 
(d) DEADLINE.—^The Secretary shall implement this section not 
later than October 1, 1997, unless the Secretary submits to Congress 
before that date a report with a schedule for completion of action 
under this section. 
SEC. 3177. DESIGNATION OF COVERED FACILITIES AS ENVIRON-
MENTAL CLEANUP DEMONSTRATION AREAS. 
(a) DESIGNATION.—^Each defense nuclear facility is hereby des-
ignated as an environmental cleanup demonstration area to carry 
out the purposes of this subtitle, including the utilization and 
evaluation of new technologies to be used in environmental restora-
tion and remediation at other defense nuclear facilities. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that 
Federal and State regulatory agencies, members of the communities 
surrounding any defense nuclear facility, and other affected parties 
with respect to the facility should continue to— 
(1) develop expedited and streamlined processes and sys-
tems for cleaning up such facility; 
(2) eliminate unnecessary administrative complexity and 
unnecessary duplication of regulation with respect to the 
cleanup of such facility; 
(3) proceed expeditiously and cost-effectively with environ-
mental restoration and remediation activities at such facility; 
(4) consider future land use in selecting environmental 
cleanup remedies at such facility; and 
(5) identify £ind recommend to Congress changes in law 
needed to expedite the cleanup of such facility. 
SEC. 3178. DEFINITIONS. 
In this subtitle: 
(1) The term "Secretary" means the Secretary of Energy. 
(2) The term "Department" means the Department of 
Energy. 
(3) The term "defense nuclear facility" has the meaning 
given the term "Department of Energy defense nuclear facility" 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2851 
in section 318 of the Atomic Energy Act of 1954 (42 U.S.C. 
2286g). 
SEC. 3179. TERMINATION. 
This subtitle is repealed effective September 30, 2001. 
SEC. 3180. REPORT. 
Not later than September 30, 2000, the Secretary shall submit 
to Congress a report on the effectiveness of this subtitle in expedit-
ing environmental restoration and waste management of defense 
nuclear facilities. The report shall include recommendations on 
whether this subtitle should remain in effect beyond September 
30,2001. 
Subtitle F—Waste Isolation Pilot Plant 
Land Withdrawal Act Amendments 
'Waste Isolation Pilot Plant 
SEC. 3181. SHORT TITLE. 
This subtitle may be cited as the 
Land Withdrawal Amendment Act". 
SEC. 3182. DEFINITIONS. 
Section 2 of the Waste Isolation Pilot Plant Land Withdrawal 
Act (Public Law 102-579; 106 Stat. 4777) is amended— 
(1) by striking paragraphs (18) and (19); and 
(2) by redesignating paragraphs (20), (21), and (22), as 
paragraphs (18), (19), and (20), respectively. 
SEC. 3183. MANAGEMENT PLAN. 
Section 4(b)(5)(B) of the Waste Isolation Pilot Plant Land With-
drawal Act (106 Stat. 4781) is amended by striking "or with the 
Solid Waste Disposal Act (42 U.S.C. 6901 et seq.)". 
SEC. 3184. REPEAL OF TEST PHASE AND RETRIEVAL PLANS. 
(a) REPEAL.—Section 5 of the Waste Isolation Pilot Plant Land 
Withdrawal Act (106 Stat. 4782) is repealed. 
(b) CLERICAL AMENDMENT.—^The table of contents in section 
Kb) of such Act (106 Stat. 4777) is amended by striking out the 
item relating to section 5. 
SEC. 3185. TEST PHASE ACTIVITIES. 
Section 6 of the Waste Isolation Pilot Plsmt Land Withdrawal 
Act (106 Stat. 4783) is amended— 
(1) by repealing subsections (a) and (b); 
(2) by repealing paragraph (1) of subsection (c); 
(3) by redesignating subsection (c) as subsection (a) and 
in that subsection— 
(A) by repealing subparagraph (A) of paragraph (2); 
(B) by striking the subsection heading and the matter 
immediately following the subsection heading and inserting 
"STUDY.—The following study shall be conducted:"; 
(C) by striking "(2) REMOTE-HANDLED WASTE.—"; 
(D) by striking "(B) STUDY.—"; 
(E) by redesignating clauses (i), (ii), and (iii) as para-
graphs (1), (2), and (3), respectively; and 
(F) by realigning the margins of such clauses to be 
margins of paragraphs; 
42 use 7274k 
note. 
42 use 7274k 
note. 
Waste Isolation 
Pilot Plant Land 
Withdrawal 
Amendment Act. 
110 STAT. 2852 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(4) in subsection (d), by striking ", during the test phase, 
a biennial" and inserting "a" and by striking ", consisting 
of a documented analysis of and inserting "as necessary to 
demonstrate"; and 
(5) by redesignating subsection (d) as subsection (b). 
SEC. 3186. DISPOSAL OPERATIONS. 
Subsection (b) of section 7 of the Waste Isolation Pilot Plant 
Land Withdrawal Act (106 Stat. 4785) is amended to read as 
follows: 
"(b) 
REQUIREMENTS 
FOR 
COMMENCEMENT 
OF 
DISPOSAL 
OPERATIONS.—^The Secretary may commence emplacement of trans-
uranic waste underground for disposal at WIPP only upon com-
pletion of— 
"(1) the Administrator's certification under section 8(d)(1) 
that the WIPP facility will comply with the final disposal 
regulations; 
"(2) the acquisition by the Secretary (whether by purchase, 
condemnation, or otherwise) of Federal Oil and Gas Leases 
No. NMNM 02953 and No. NMNM 02953C, unless the Adminis-
trator determines under section 4(b)(5) that such acquisition 
is not required; and 
Notification. 
"(3) the 30-day period beginning on the date on which 
the Secretary notifies Congress that the requirements of section 
9(a)(1) have been met.". 
SEC. 3187. ENVIRONMENTAL 
PROTECTION 
AGENCY 
DISPOSAL 
REGULATIONS. 
(a) SECTION 8(d)(1).—Section 8(d)(1) of the Waste Isolation Pilot 
Plant Land Withdrawal Act (106 Stat. 4786) is amended— 
(1) by £imending subparagraph (A) to read as follows: 
"(A) APPLICATION FOR COMPLIANCE.—^Within 30 days 
after the date of the enactment of the Waste Isolation 
Pilot Plant Land Withdrawal Amendment Act, the Sec-
retary shall provide to Congress a schedule for the 
incremental submission of chapters of the application to 
the Administrator beginning no later than 30 days after 
the date of the submittal of the schedule. The Adminis-
trator shall review the submitted chapters and provide 
requests for additional information from the Secretary as 
needed for completeness within 45 days of the receipt of 
Notification. 
each chapter. The Administrator shall notify Congress of 
such requests. The schedule shall call for the Secretary 
to submit all chapters to the Administrator no later than 
October 31, 1996. The Administrator may at any time 
request additional information from the Secretary as 
needed to certify, pursuant to subparagraph (B), whether 
the WIPP facility will comply with the final disposal regula-
tions."; and 
(2) in subparagraph (D), by striking "after the application 
is" and inserting "after the full application has been". 
(b) SECTION 8(d) (2) and (3).—Section 8(d) of such Act is 
amended by striking paragraphs (2) and (3), by striking "(1) COMPLI-
ANCE WITH DISPOSAL REGULATIONS.—" and by redesignating sub-
paragraphs (A), (B), (C), and (D) of paragraph (1) as paragraphs 
(1), (2), (3), and (4), respectively. 
(c) SECTION 8(g).—-Section 8(g) of such Act is amended to read 
as follows: 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2853 
"(g) ENGINEERED AND NATURAL BARRIERS, ETC.—The Secretary 
shall use both engineered and natural barriers and any other meas-
ures (including waste form modifications) to the extent necessary 
at WIPP to comply with the final disposal regulations.". 
SEC. 3188. COMPLIANCE 
WITH 
ENVIRONMENTAL 
LAWS 
AND 
REGULATIONS. 
(a) SECTION 9(a)(1).—Section 9(a)(1) of the Waste Isolation Pilot 
Plant Land Withdrawal Act (106 Stat. 4788) is amended by adding 
after and below subparagraph (H) the following: "With respect 
to transuranic mixed waste designated by the Secretary for disposal 
at WIPP, such waste is exempt from treatment standards promul-
gated pursuant to section 3004(m) of the Solid Waste Disposal 
Act (42 U.S.C. 6924(m)) and shall not be subject to the land disposal 
prohibitions in section 3004(d), (e), (f), and (g) of the Solid Waste 
Disposal Act.". 
(b) SECTION 9(b).—Subsection (b) of section 9 of such Act is 
repealed. 
(c) SECTION 9(cX2).—Subsection (cX2) of section 9 of such Act 
is repealed. 
(d) SECTION 14.—Section 14 of such Act (106 Stat. 4791) is 
£imended— 
(1) in subsection (a), by striking "No provision" and insert-
ing "Except for the exemption from the land disposal restric-
tions described in section 9(a)(1), no provision"; and 
(2) in subsection (b)(2), by striking "including all terms 
and conditions of the No-Migration Determination" and insert-
ing "except that the transuranic mixed waste designated by 
the Secretary for disposal at WIPP is exempt from the land 
disposal restrictions described in section 9(a)(1)". 
SEC. 3189. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACE-
MENT OF TRANSURANIC WASTE. 
(a) IN GENERAL.—Section 10 of the Waste Isolation Pilot Plant 
Land Withdrawal Act (106 Stat. 4789) is amended to read as 
follows: 
"SEC. 10. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACE-
MENT OF TRANSURANIC WASTE. 
"It is the sense of Congress that the Secretary should complete 
all actions required under section 7(b) to commence emplacement 
of transuranic waste underground for disposal at WIPP not later 
than November 30, 1997, provided that before that date all 
applicable health and safety standards have been met and all 
applicable laws have been complied with.". 
(b) CLERICAL AMENDMENT.—^The item relating to section 10 
in the table of contents in section 1 is amended to read as follows: 
"Sec. 10. Sense of Congress on commencement of emplacement of transuranic 
waste.". 
SEC. 3190. DECOMMISSIONING OF WIPP. 
Section 13 of the Waste Isolation Pilot Plant Land Withdrawal 
Act (106 Stat. 4791) is amended— 
(1) by striking subsection (a); Eind 
(2) by striking "(b) MANAGEMENT PLAN FOR THE WITH-
DRAWAL AFTER DECOMMISSIONING.—^Within 5 years after the 
date of the enactment of this Act, the" and inserting "The". 
110 STAT. 2854 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 3191. AUTHORIZATIONS 
FOR 
ECONOMIC 
ASSISTANCE 
AND 
MISCELLANEOUS PAYMENTS. 
(a) AUTHORIZATION AMENDMENT.—Section 15(a) of the Waste 
Isolation Pilot Plant Land Withdrawal Act (106 Stat. 4791) is 
amended— 
(1) in the subsection caption, by striking "15-YEAR" and 
inserting "14-YEAR"; and 
(2) by striking "15 fiscal years beginning with the fiscal 
year in which the transport of transuranic waste to WIPP 
is initiated" and inserting "14 fiscal years beginning with fiscal 
year 1998". 
(b) REQUIREMENT FOR SEPARATE AUTHORIZATIONS.—Such sec-
tion 15(a) is further amended by adding at the end the following: 
"The authorization of appropriations for funds for payments to 
the State under the preceding sentence shall be separate from 
any authorization of appropriations of funds for WIPP.". 
(c) FISCAL YEAR 1997 FUNDING.—Of the amount authorized 
to be appropriated for the Department of Energy by section 3102(b), 
$20,000,00(5 shall be available for the purpose of a payment by 
the Secretary of Energy to the State of New Mexico for road 
improvements in connection with the Waste Isolation Pilot Plant. 
TITLE XXXII—DEFENSE NUCLEAR 
FACILITIES SAFETY BOARD 
Sec. 3201. Authorization. 
SEC. 3201. AUTHORIZATION. 
There are authorized to be appropriated for fiscal year 1997, 
$17,000,000 for the operation of the Defense Nuclear Facilities 
Safety Board under chapter 21 of the Atomic Energy Act of 1954 
(42 U.S.C. 2286 et seq.). 
TITLE XXXIII—NATIONAL DEFENSE 
STOCKPILE 
Subtitle A—Authorization of Disposals and Use of Funds 
Sec. 3301. Definitions. 
Sec. 3302. Authorized uses of stockpile funds. 
Sec. 3303. Disposal of cert;ain materials in National Defense Stockpile. 
Subtitle B—Programmatic Change 
Sec. 3311. Biennial report; on stockpile requirements. 
Sec. 3312. Notification requirements. 
Sec. 3313. Importation of strategic and critical materials. 
Subtitle A—^Authorization of Disposals and 
Use of Funds 
50 u s e 98d note. 
SEC. 3301. DEFINITIONS. 
In this title: 
(1) The term "National Defense Stockpile" means the stock-
pile provided for in section 4 of the Strategic and Critical 
Materials Stock Piling Act (50 U.S.C. 98c). 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2855 
(2) The term "National Defense Stockpile Transaction 
Fund" means the fund in the Treasury of the United States 
established under section 9(a) of the Strategic and Critical 
Materials Stock Piling Act (50 U.S.C. 98h(a)). 
SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS. 
(a) OBLIGATION OF STOCKPILE FUNDS.—During fiscal year 1997, 
the National Defense Stockpile Manager may obligate up to 
$60,000,000 of the funds in the National Defense Stockpile Trans-
action Fund for the authorized uses of such funds under section 
9(b)(2) of the Strategic £ind Critical Materials Stock Piling Act 
(50 U.S.C. 98h(b)(2)). 
(b) ADDITIONAL OBLIGATIONS.—^The National Defense Stockpile 
Manager may obligate amounts in excess of the amount specified 
in subsection (a) if the National Defense Stockpile Manager notifies 
Congress that extraordinary or emergency conditions necessitate 
the additional obligations. The National Defense Stockpile Manager 
may make the additional obligations described in the notification 
Eifter the end of the 45-day period beginning on the date Congress 
receives the notification. 
(c) LIMITATIONS.—^The authorities provided by this section shall 
be subject to such limitations as may be provided in appropriations 
Acts. 
SEC. 3303. DISPOSAL OF CERTAIN MATERIALS IN NATIONAL DEFENSE 
50 USC 98d note. 
STOCKPILE. 
(a) DISPOSAL REQUIRED.—Subject to subsection (c), the Presi- President, 
dent shall dispose of materials contained in the National Defense 
Stockpile and specified in the table in subsection (b) so as to 
result in receipts to the United States in amounts equal to— 
(1) $81,000,000 during fiscal year 1997; and 
(2) $612,000,000 during the ten-fiscal year period ending 
September 30, 2006. 
(b) LIMITATION ON DISPOSAL QUANTITY.—The total quantities 
of materials authorized for disposal by the President under sub-
section (a) may not exceed the amounts set forth in the following 
table: 
Authorized Stockpile Disposals 
Material for disposal 
Quantity 
Aluminum 
62,881 short tons 
Cobalt 
26,000,000 pounds 
contained 
Colxmibivun Ferro 
930,911 pounds con-
tained 
Germanium Metal 
40,000 kilograms 
Indium 
35,000 troy ounces 
Palladium 
15,000 troy ounces 
Platinum 
10,000 troy ounces 
Rubber, Natural 
125,138 long tons 
Tantalum, Carbide Powder 
6,000 pounds con-
tained 
Tantalum, Minerals 
750,000 pounds con-
tained 
110 STAT. 2856 
PUBLIC LAW 104-201—SEPT. 23, 1996 
Authorized Stockpile Disposals—Continued 
Material for disposal 
Quantity 
Tantalum, Oxide 
40,000 pounds con-
tained 
(c) MINIMIZATION OF DISRUPTION AND LOSS.—^The President 
may not dispose of materials under subsection (a) to the extent 
that the disposal will result in— 
(1) undue disruption of the usual markets of producers, 
processors, and consumers of the materials proposed for dis-
posal; or 
(2) avoidable loss to the United States. 
(d) TREATMENT OF RECEIPTS.—^Notwithstanding section 9 of 
the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 
98h), funds received as a result of the disposal of materials under 
subsection (a) shall be— 
(1) deposited into the general fund of the Treasury; and 
(2) to the extent necessary, used to offset the revenues 
that will be lost as a result of execution of the amendments 
made by section 4303(a) of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 658). 
(e) QUALIFYING 
OFFSETTING 
LEGISLATION.—^This section is 
^ 
specifically enacted as qualifying offsetting legislation for the pur-
pose of offsetting fully the estimated revenues lost as a result 
of the amendments made by subsection (a) of section 4303 of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106; 110 Stat. 658), and as such is deemed to satisfy 
the conditions in subsection (b) of such section. 
(f) RELATIONSHIP TO OTHER DISPOSAL AUTHORITY.—^The dis-
posal authority provided in subsection (a) is new disposal authority 
and is in addition to, and shall not affect, any other disposal 
authority provided by law regarding the materials specified in such 
subsection. 
Subtitle B—Programmatic Change 
SEC. 3311. BIENNIAL REPORT ON STOCKPILE REQUIREMENTS. 
(a) NATIONAL EMERGENCY PLANNING ASSUMPTIONS.—Section 14 
of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 
98h-5) is amended— 
(1) by redesignating subsection (c) as subsection (e); and 
(2) by striking out subsection (b) and inserting in lieu 
thereof the following new subsection: 
"(b) Each report under this section shall set forth the national 
emergency planning assumptions used by the Secretary in making 
the Secretary's recommendations under subsection (a)(1) with 
respect to stockpile requirements. The Secretary shall base the 
national emergency planning assumptions on a military conflict 
scenario consistent with the scenario used by the Secretary in 
budgeting and defense planning purposes. The assumptions to be 
set forth include assumptions relating to each of the following: 
"(1) The length and intensity of the assumed military 
conflict. 
"(2) The military force structure to be mobilized. 
"(3) The losses anticipated from enemy action. 
-•^ ... V ;>i-s»;:^pr^5«-; ^_^ 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2857 
"(4) The military, industrial, and essential civilian require-
ments to support the national emergency. 
"(5) The availability of supplies of strategic and critical 
materials from foreign sources during the mobilization period, 
the military conflict, and the subsequent period of replenish-
ment, taking into consideration possible shipping losses. 
"(6) The domestic production of strategic and critical mate-
rials during the mobilization period, the military conflict, and 
the subsequent period of replenishment, taking into consider-
ation possiole shipping losses. 
"(7) Civilian austerity measures required during the 
mobilization period and milit£iry conflict. 
"(c) The stockpile requirements shall be based on those strategic 
and criticEil materials necessary for the United States to replenish 
or replace, within three years of the end of the military conflict 
scenario required under subsection (b), all munitions, combat sup-
port items, and weapons systems that would be required after 
such a military conflict. 
"(d) The Secretary shall also include in each report under 
this section an examination of the effect that alternative mobiliza-
tion periods under the military conflict scenario required under 
subsection (b), as well as a range of other military conflict scenarios 
addressing potentially more serious threats to national security, 
would have on the Secretarjr's recommendations under subsection 
(aXl) with respect to stockpile requirements.". 
(b) CONFORMING AMENDMENT.—Section 2 of such Act (50 U.S.C. 
98a) is amended by striking out subsection (c) and inserting in 
lieu thereof the following new subsection: 
"(c) The purpose of the National Defense Stockpile is to serve 
the interest of national defense only. The National Defense Stockpile 
is not to be used for economic or budgetary purposes.". 
(c) EFFECTIVE DATE.—^The amendments made by this section 50 use 98a note, 
shall take effect on October 1,1996. 
SEC. 3312. NOTIFICATION REQUIREMENTS. 
(a) PROPOSED CHANGES IN STOCKPILE QUANTITIES.—Section 
3(c)(2) of the Strategic and Critical Materials Stock Piling Act 
(50 U.S.C. 98b(c)(2)) is amended— 
(1) by striking out "effective on or after the 30th legislative 
day following" and inserting in lieu thereof "after the end 
of the 45-day period beginning on"; and 
(2) by striking out the last sentence. 
(b) WAIVER OF ACQUISITION AND DISPOSAL REQUIREMENTS.— 
Section 6(d)(1) of such Act (50 U.S.C. 98e(d)(l)) is amended by 
striking out "thirty days" and inserting in lieu thereof "45 days". 
(c) TIME TO BEGIN DISPOSAL.—Section 6(d)(2) of such Act (50 
U.S.C. 98e(d)(2)) is amended by striking out "thirty days" and 
inserting in lieu thereof "45 days". 
SEC. 3313. IMPORTATION OF STRATEGIC AND CRITICAL MATERIALS. 
Section 13 of the Strategic and Critical Materials Stock Piling 
Act (50 U.S.C. 98h-4) is amended— 
(1) by striking out "as a Communist-dominated country 
or area"; and 
(2) by striking out "such Communist-dominated countries 
or areas" and inserting in lieu thereof "a country or area 
listed in such general note". 
110 STAT. 2858 
PUBLIC LAW 104-201—SEPT. 23, 1996 
TITLE XXXIV—NAVAL PETROLEUM 
RESERVES 
Sec. 3401. Authorization of appropriations. 
Sec. 3402. Price requirement on sale of certain petroleum during fiscal year 1997. 
SEC. 3401, AUTHORIZATION OF APPROPRIATIONS. 
There is hereby authorized to be appropriated to the Secretary 
of Energy $149,500,000 for fiscal year 1997 for the purpose of 
carrying out activities under chapter 641 of title 10, United States 
Code, relating to the naval petroleum reserves (as defined in section 
7420(2) of such title). Funds appropriated pursuant to such 
authorization shall remain available until expended. 
10 u s e 7430 
SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM 
note. 
DURING FISCAL YEAR 1997. 
Notwithstanding section 7430(b)(2) of title 10, United States 
Code, during fiscal year 1997, any sale of any part of the United 
States share of petroleum produced from Naval Petroleum Reserves 
Numbered 1, 2, and 3 shall be made at a price not less than 
90 percent of the current sales price, as estimated by the Secretary 
of Energy, of comparable petroleum in the same area. 
TITLE XXXV—PANAMA CANAL 
COMMISSION 
Subtitle A—Authorization of Appropriations 
Sec. 3501. Short title. 
Sec. 3502. Authorization of expenditures. 
Sec. 3503. Purchase of vehicles. 
Sec. 3504. Expenditures only in accordance with treaties. 
Subtitle B—^Amendments to Panama Canal Act of 1979 
Sec. 3521. Short title; references. 
Sec. 3522. Definitions and recommendation for legislation. 
Sec. 3523. Administrator. 
Sec. 3524. Deputy Administrator and Chief Engineer. 
Sec. 3525. Office of Ombudsman. 
Sec. 3526. Appointment and compensation; duties. 
Sec. 3527. Applicability of certain benefits. 
Sec. 3528. Travel and transportation. 
Sec. 3529. Clarification of definition of agency. 
Sec. 3530. Panama Canal Employment System; merit and other employment 
requirements. 
Sec. 3531. Employment standards. 
Sec. 3532. Repeal of obsolete provision regarding interim application of Canal Zone 
Merit System. 
Sec. 3533. Repeal of provision relating to recruitment and retention remuneration. 
Sec. 3534. Benefits based on basic pay. 
Sec. 3535. Vesting of general administrative authority of commission. 
Sec. 3536. Applicability of certain laws. 
Sec. 3537. Repeal of provision relating to transferred or reemployed employees. 
Sec. 3538. Administration of special disability benefits. 
Sec. 3539. Panama Canal Revolving Fund. 
Sec. 3540. Printing. 
Sec. 3541. Accounting policies. 
Sec. 3542. Interagency services; reimbursements. 
Sec. 3543. Postal service. 
Sec. 3544. Investigation of accidents or injury giving rise to claim. 
Sec. 3545. Operations regulations. 
Sec. 3546. Miscellaneous repeals. 
Sec. 3547. Exemption from Metric Conversion Act of 1975. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2859 
Sec. 3548. Conforming and clerical amendments. 
Sec. 3549. Repeal of Panama Canal Code. 
Subtitle A—^Authorization of 
Appropriations 
SEC. 3501. SHORT TITLE. 
This subtitle may be cited as the "Panama Canal Commission 
Authorization Act for Fiscal Year 1997". 
SEC. 3502. AUTHORIZATION OF EXPENDITURES. 
(a) IN GENERAL.—Subject to subsection (b), the Panama Canal 
Commission is authorized to use amounts in the Panama Canal 
Revolving Fund to make such expenditures within the limits of 
funds and borrowing authority available to it in accordance with 
law, and to make such contracts and commitments, as may be 
necessary under the Panama Canal Act of 1979 (22 U.S.C. 3601 
et seq.) mr the operation, maintenance, improvement, and adminis-
tration of the Panama Canal for fiscal year 1997. 
(b) LIMITATIONS.—For fiscal year 1997, the Panama Canal 
Commission may expend from funds in the Panama Canal Revolving 
Fund not more than $73,000 for reception and representation 
expenses, of which— 
(1) not more than $18,000 may be used for official reception 
and representation expenses of the Supervisory Board of the 
Commission; 
(2) not more than $10,000 may be used for official reception 
and representation expenses of the Secretary of the Commis-
sion; and 
(3) not more than $45,000 may be used for official reception 
and representation expenses of the Administrator of the 
Commission. 
SEC. 3503. PURCHASE OF VEHICLES. 
Notwithstanding any other provisions of law, the funds avail-
able to the Commission shall be available for the purchase and 
transportation to the Republic of Panama of passenger motor 
vehicles, including large, heavy-duty vehicles. 
SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES. 
Expenditures authorized under this subtitle may be made only 
in accordance with the Panama Canal Treaties of 1977 and any 
law of the United States implementing those treaties. 
Panama Canal 
Commission 
Authorization 
Act for Fiscal 
Year 1997. 
110 STAT. 2860 
PUBLIC LAW 104-201—SEPT. 23, 1996 
P
a
n
a
m
a C
a
n
a
l 
Subtltle B—Amendments to Panama Canal 
Act Amendments 
* 
. 
« - ^v««^x 
of 1996. 
Act of 1979 
SEC. 3521. SHORT TITLE; REFERENCES. 
22 use 3601 
(a) SHORT TITLE.—This subtitle may be cited as the "Panama 
note. 
Canal Act Amendments of 1996". 
(b) REFERENCES.—Except as otherwise expressly provided, 
whenever in this subtitle an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section 
or other provision of the Panama Canal Act of 1979 (22 U.S.C. 
3601 et seq.). 
SEC. 3522. DEFINITIONS AND RECOMMENDATION FOR LEGISLATION. 
Section 3 (22 U.S.C. 3602) is amended— 
(1) in subsection (b), by inserting "and" after the semicolon 
at the end of paragraph (4), by striking the semicolon at the 
end of paragraph (5) and inserting a period, and striking para-
graphs (6) and (7); and 
(2) by striking subsection (d). 
SEC. 3523. ADMINISTRATOR 
(a) IN GENERAL.—Section 1103 (22 U.S.C. 3613) is amended 
to read as follows: 
"ADMINISTRATOR 
President. 
"SEC. 1103. (a) There shall be an Administrator of the Commis-
sion who shall be appointed by the President, by and with the 
advice and consent of the Senate, and shall hold office at the 
pleasure of the President. 
"(b) The Administrator shall be paid compensation in an 
amount, established by the Board, not to exceed level III of the 
Executive Schedule.". 
22 use 3613 
(b) SAVINGS PROVISIONS.—Nothing in this section (or section 
note. 
3549(3)) shall be considered to affect— 
(1) the tenure of the individual serving as Administrator 
of the Commission on the day before subsection (a) takes 
effect; or 
(2) until modified under section 1103(b) of the Panama 
Canal Act of 1979, as amended by subsection (a), the compensa-
tion of the individual so serving. 
SEC. 3524. DEPUTY ADMINISTRATOR AND CfflEF ENGINEER. 
(a) IN GENERAL.—Section 1104 (22 U.S.C. 3614) is amended 
to read as follows: 
DEPUTY ADMINISTRATOR 
President. 
"SEC. 1104. (a) There shall be a Deputy Administrator of the 
Commission who shall be appointed by the President. The Deputy 
Administrator shall perform such duties as may be prescribed by 
the Board. 
"(b) The Deputy Administrator shall be paid compensation at 
a rate of pay, established by the Board, which does not exceed 
the rate of basic pay in effect for level IV of the Executive Schedule, 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2861 
and, if eligible, shall be paid the overseas recruitment and retention 
differential provided for in section 1217 of this Act.". 
(b) SAVINGS PROVISIONS.—^Nothing in this section shall be 22 use 3614 
considered to affect— 
note. 
(1) the tenure of the individual serving as Deputy Adminis-
trator of the Commission on the day before subsection (a) 
takes effect; or 
(2) until modified under section 1104(b) of the Panama 
Canal Act of 1979, as amended by subsection (a), the compensa-
tion of the individual so serving. 
SEC. 3525. OFFICE OF OMBUDSMAN. 
Section 1113 (22 U.S.C. 3623) is amended by striking subsection 
(d) and redesignating subsection (e) as subsection (d). 
SEC. 3526. APPOINTMENT AND COMPENSATION; DUTIES. 
Section 1202 (22 U.S.C. 3642) is amended to read as follows: 
"APPOINTMENT AND COMPENSATION; DUTIES 
"SEC. 1202. (a) In accordance with this chapter, the Commission 
may appoint, fix the compensation of, and define the authority 
and duties of officers and employees (other than the Administrator 
and Deputy Administrator) necessary for the management, oper-
ation, and maintenance of the Panama Canal and its complemen-
tary works, installations, and equipment. 
"(b) Individuals serving in any Executive agency (other than 
the Commission) or the Smithsonian Institution, including individ-
uals in the uniformed services, may, if appointed under this section 
or section 1104 of this Act, serve as officers or employees of the 
Commission.". 
SEC. 3527. APPLICABHJTY OF CERTAIN BENEFITS. 
Section 1209 (22 U.S.C. 3649) is amended to read as follows: 
"APPLICABILITY OF CERTAIN BENEFITS 
"SEC. 1209. Chapter 81 of title 5, United States Code, relating 
to compensation for work injuries, chapters 83 and 84 of such 
title 5, relating to retirement, chapter 87 of such title 5, relating 
to life insurance, £ind chapter 89 of such title 5, relating to he£dth 
insurance, are applicable to Commission employees, except any 
individual— 
"(1) who is not a citizen of the United States; 
"(2) whose initial appointment by the Commission occurs 
after October 1, 1979; and 
"(3) who is covered by the Social Security System of the 
Republic of Panama pursuant to any provision of the Panama 
Canal Treaty of 1977 and related agreements.". 
SEC. 3528. TRAVEL AND TRANSPORTATION. 
Section 1210 (22 U.S.C. 3650) is amended to read as follows: 
"TRAVEL AND TRANSPORTATION 
"SEC 1210. (a) Subject to subsections (b) and (c), the Commis-
sion may pay travel and transportation expenses for employees 
in accordance with subchapter II of chapter 57 of title 5, United 
States Code. 
110 STAT. 2862 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(b) For an employee to whom section 1206 applies, the Commis-
sion may pay travel and transportation expenses associated with 
vacation leave for the employee and the immediate family of the 
employee notwithstanding requirements regarding periods of service 
established by subchapter II of chapter 57 of title 5, United States 
Code, or the regulations promulgated thereunder. 
"(c) For an employee to whom section 1206 does not apply, 
the Commission may pay travel and transportation expenses associ-
ated with vacation leave for the employee and the immediate family 
of the employee notwithstanding requirements regarding a written 
agreement concerning the duration of a continuing service obligation 
established by subchapter 11 of chapter 57 of title 5, United States 
Code, or the regulations promulgated thereunder. 
"(d)(1) Notwithstanding any other provision of law (except para-
graph (2)), the Commission may contract with Panamanian carriers 
registered under the laws of the Republic of Panama to provide 
air transportation to officials and employees of the Commission 
who are citizens of the Republic of Panama. 
"(2) Notwithstanding paragraph (1), an official or employee 
of the Commission referred to in paragraph (1) may elect, for 
security or other reasons, to travel by an air carrier holding a 
certificate under section 41102 of title 49, United States Code.". 
SEC. 3529. CLARIFICATION OF DEFINITION OF AGENCY. 
Subparagraph (B) of section 1211(1) (22 U.S.C. 3651(1)(B)) is 
amended to read as follows: 
"(B) any other Executive agency or the Smithsonian 
Institution, to the extent of any election in effect under 
section 1212(b) of this Act;". 
SEC. 3530. PANAMA CANAL EMPLOYMENT SYSTEM; MERIT AND OTHER 
EMPLOYMENT REQUIREMENTS. 
(a) IN GENERAL.—Section 1212 (22 U.S.C. 3652) is amended 
to read as follows: 
PANAMA CANAL EMPLOYMENT SYSTEM; MERIT AND OTHER 
EMPLOYMENT REQUIREMENTS 
Establishment. 
"SEC. 1212. (a) The Commission shall establish a Panama Canal 
Regulations. 
Employment System and prescribe the regulations necessary for 
its administration. The Panama Canal Employment System shall— 
"(1) be established in accordance with and be subject to 
the provisions of the Panama Canal Treaty of 1977 and related 
agreements, the provisions of this chapter, and any other 
applicable provision of law; 
"(2) be based on the consideration of the merit of each 
employee or candidate for employment and the qualifications 
and fitness of the employee to hold the position concerned; 
"(3) conform, to the extent practicable and consistent with 
the provisions of this Act, to the policies, principles, and stand-
ards applicable to the competitive service; 
"(4) in the case of employees who are citizens of the United 
States, provide for the appropriate interchange of those employ-
ees between positions under the Panama Canal Employment 
System and positions in the competitive service; and 
"(5) not be subject to the provisions of title 5, United 
States Code, unless specifically made applicable by this Act. 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2863 
Applicability. 
22 u s e 3652 
note. 
"(b)(1) The head of any Executive agency (other than the 
Commission) and the Smithsonian Institution may elect to have 
the Panama Canal Employment System made applicable in whole 
or in part to personnel of that agency in the Republic of Panama. 
"(2) Any Executive agency (other than the Commission) and 
the Smithsonian Institution, to the extent of any election under 
paragraph (1), shall conduct its employment and pay practices 
relating to employees in accordance with the Panama Canal 
Employment System. 
"(3) Notwithstanding any other provision of this Act or the Applicability. 
Panama Canal Act Amendments of 1996, this subchapter, as last 
in effect before the effective date of section 3530 of the Panama 
Canal Act Amendments of 1996, shall continue to apply to an 
Executive agency or the Smithsonian Institution to the extent of 
an election under paragraph (1) by the head of agency or the 
Institution, respectively. 
"(c) The Commission may exclude any employee or position 
from coverage under any provision of this subchapter, other than 
the interchange rights extended under subsection (a)(4).". 
(b) SAVINGS PROVISIONS.—The Panama Canal Employment Sys-
tem and all elections, rules, regulations, and orders relating thereto, 
as last in effect before the amendment made by subsection (a) 
takes effect, shall continue in effect, according to their terms, until 
modified, terminated, or superseded under section 1212 of the 
Panama Canal Act of 1979, as amended by subsection (a). 
SEC. 3531. EMPLOYMENT STANDARDS. 
Section 1213 (22 U.S.C. 3653) is amended in the first sentence 
by striking "The head of each agency" and inserting "The 
Commission". 
SEC. 3532. REPEAL OF OBSOLETE PROVISION REGARDING INTERIM 
APPLICATION OF CANAL ZONE MERIT SYSTEM. 
Section 1214 (22 U.S.C. 3654) is repealed. 
SEC. 3533. REPEAL OF PROVISION RELATING TO RECRUITMENT AND 
RETENTION REMUNERATION. 
Section 1217(d) (22 U.S.C. 3657(d)) is repealed. 
SEC. 3534. BENEFITS BASED ON BASIC PAY. 
Section 1218(2) (22 U.S.C. 3658(2)) is amended to read as 
follows: 
"(2) benefits under subchapter III of chapter 83 or chapter 
84 of title 5, United States Code, relating to retirement;". 
SEC. 3535. VESTING OF GENERAL ADMINISTRATIVE AUTHORITY OF 
COMMISSION. 
Section 1223 (22 U.S.C. 3663) is amended to read as follows: 
CENTRAL EXAMINING OFFICE 
"SEC. 1223. The Commission shall establish a Central Examin- Establishment, 
ing Office. The purpose of the office shall be to implement the 
provisions of the Panama Canal Treaty of 1977 and related agree-
ments with respect to recruitment, examination, determination of 
qualification standards, and similar matters relating to employment 
of the Commission.". 
110 STAT. 2864 
PUBLIC LAW 104-201—SEPT. 23, 1996 
SEC. 3536. APPLICABILITY OF CERTAIN LAWS. 
Section 1224 (22 U.S.C. 3664) is amended to read as follows: 
"APPLICABILITY OF TITLE 5, UNITED STATES CODE 
"SEC. 1224. The following provisions of title 5, United States 
Code, apply to the Panama Canal Commission: 
"(1) Part I of title 5 (relating to agencies generally). 
"(2) Chapter 21 (relating to employee definitions). 
"(3) Section 2302(b)(8) (relating to whistleblower protection) 
and all provisions of title 5 relating to the administration 
or enforcement or any other aspect thereof, as identified in 
regulations prescribed by the Commission in consultation with 
the Office of Personnel Management. 
"(4) All provisions relating to preference eligibles. 
"(5) Section 5514 (relating to offset from salary). 
"(6) Section 5520a (relating to garnishments). 
"(7) Sections 5531-5535 (relating to dual pay and employ-
ment). 
"(8) Subchapter VI of chapter 55 (relating to accumulated 
• and accrued leave). 
"(9) Subchapter DC of chapter 55 (relating to severance 
and back pay). 
"(10) Chapter 57 (relating to travel, transportation, and 
subsistence). 
"(11) Chapter 59 (relating to allowances). 
"(12) Chapter 63 (relating to leave for CONUS employees). 
"(13) Section 6323 (relating to military leave; Reserves 
and National Guardsmen). 
"(14) Chapter 71 (relating to labor relations), 
"(15) Subchapters II and III of chapter 73 (relating to 
employment limitations and political activities, respectively) 
and all provisions of title 5 relating to the administration 
or enforcement or any other aspect thereof, as identified in 
regulations prescribed by the Commission in consultation with 
the Office of Personnel Management. 
"(16) Chapter 81 (relating to compensation for work 
injuries). 
"(17) Chapters 83 and 84 (relating to retirement). 
"(18) Chapter 85 (relating to unemployment compensation). 
"(19) Chapter 87 (relating to life insurance). 
"(20) Chapter 89 (relating to health insurance).". 
SEC. 3537. REPEAL OF PROVISION RELATING TO TRANSFERRED OR 
REEMPLOYED EMPLOYEES. 
Section 1231(a)(3) (22 U.S.C. 3671(a)(3)) is repealed. 
SEC. 3538. ADMINISTRATION OF SPECIAL DISABILITY BENEFITS. 
Section 1245 (22 U.S.C. 3682) is amended by striking so much 
as precedes subsection (b) and inserting the following: 
"ADMINISTRATION OF CERTAIN DISABILITY BENEFITS 
"SEC. 1245. (a)(1) The Commission, or any other United States 
Government agency or private entity acting pursuant to an agree-
ment with the Commission, under the Act entitled 'An Act authoriz-
ing cash relief for certain employees of the Panama Canal not 
coming within the provisions of the Canal Zone Retirement Act', 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2865 
approved July 8, 1937 (50 Stat. 478; 68 Stat. 17), may continue 
the payments of cash reUef to those individual former employees 
of the Canal Zone Government or Panama Canal Company or 
their predecessor agencies not coming within the scope of the former 
Canal Zone Retirement Act whose services were terminated prior 
to October 5, 1958, because of unfitness for further useful service 
by reason of mental or physical disability resulting from age or 
disease. 
"(2) Subject to subsection (b), cash relief under this subsection 
may not exceed $1.50 per month for each year of service of the 
employees so furnished relief, with a maximum of $45 per month, 
plus the amount of any cost-of-living increases in such cash relief 
granted before October 1, 1979, pursuant to section 181 of title 
2 of the Canal Zone Code (as in effect on September 30, 1979), 
nor be paid to any employee who, at the time of termination 
for disability prior to October 5, 1958, had less than 10 years' 
service with the Canal Zone Grovemment, the Panama Canal Com-
pany, or their predecessor agencies on the Isthmus of Panama.". 
SEC. 3539. PANAMA CANAL REVOLVING FUND. 
Section 1302 of the Panama Canal Act of 1979 (22 U.S.C. 
3712) is amended to read as follows: 
"PANAMA CANAL REVOLVING FUND 
"SEC. 1302. (a) There is established in the Treasury of the Nomenclature. 
United States a revolving fund to be known as 'Panama Canal 
Revolving Fund'. The Panama Canal Revolving Fund shall, subject 
to subsection (b), be available to the Commission to carry out 
the purposes, functions, and powers authorized by this Act, includ-
ing for— 
"(1) the hire of passenger motor vehicles and aircraft; 
"(2) uniforms or allowances therefor; 
"(3) official receptions and representation expenses of the 
Board, the Secretary of the Commission, and the Administrator; 
"(4) the operation of guide services; 
"(5) a residence for the Administrator; 
"(6) disbursements by the Administrator for employee and 
community projects; 
"(7) the procurement of expert and consultEint services; 
"(8) promotional activities, including the preparation, dis-
tribution, or use of any kit, pamphlet, booklet, publication, 
radio, television, film, or other media presentation designed 
to promote the Panama Canal as a resource of the world 
shipping industry; and 
"(9) the purchase and transportation to the Republic of 
Panama of passenger motor vehicles, including large, heavy-
duty vehicles. 
"(b)(1) There shall be deposited in the Panama Canal Revolving 
Fund, on a continuing basis, toll receipts (other than amounts 
of toll receipts deposited into the Panama Canal Commission Dis-
solution Fund under section 1305) and all other receipts of the 
Commission. Except as provided in section 1303, no funds may 
be obligated or expended by the Commission in any fiscal year 
unless such obligation or expenditure has been specifically author-
ized by law. 
110 STAT. 2866 
PUBLIC LAW 104-201—SEPT. 23, 1996 
"(2) No funds may be authorized for the use of the Commission, 
or obligated or expended by the Commission in any fiscal year; 
in excess of— 
"(A) the amount of revenues deposited in the Panama Canal 
Revolving Fund and the Panama Canal Commission Dissolution 
Fund during such fiscal year; plus 
"(B) the amount of revenues deposited in the Panama Canal 
Revolving Fund before such fiscal year and remaining unobli-
gated at the beginning of such fiscal year; plus 
"(C) the $100,000,000 borrowing authority provided for in 
section 1304 of this Act. 
Reports. 
Not later than 30 days after the end of each fiscal year, the 
Secretary of the Treasury shall report to the Congress the amount 
of revenues deposited in the Panama Canal Revolving Fund during 
such fiscal year. 
"(c) With the approval of the Secretary of the Treasury, the 
Commission may deposit amounts in the Panama Canal Revolving 
Fund in any Federal Reserve bank, any depositary for public funds, 
or such other place and in such manner as the Commission and 
the Secretary may agree. 
"(d)(1) It is the sense of the Congress that the additional 
costs resulting from the implementation of the Panama Canal 
Treaty of 1977 and related agreements should be kept to the 
absolute minimum level. To this end, the Congress declares appro-
priated costs of implementation to be borne by the taxpayers over 
the life of such Treaty should be kept to a level no greater than 
the March 1979 estimate of those costs ($870,700,000) presented 
to the Congress by the executive branch during consideration of 
this Act by the Congress, less personnel retirement costs of 
$205,000,000, which were subtracted and charged to tolls, therefore 
resulting in net taxpayer cost of approximately $665,700,000, plus 
appropriate adjustments for inflation. 
"(2) It is further the sense of the Congress that the actual 
costs of implementation be consistent with the obligations of the 
United States to operate the Panama Canal safely and efficiently 
and keep it secure.". 
SEC. 3540. PRINTING. 
Title I is amended in chapter 3 (22 U.S.C. 3711 et seq.) by 
adding at the end of subchapter I the following new section: 
"PRINTING 
22 use 3714b. 
"SEC. 1306. (a) Section 501 of title 44, United States Code, 
shall not apply to direct purchase by the Commission for its use 
of printing, binding, and blank-book work in the Republic of Panama 
when the Commission determines that such direct purchase is 
in the best interest of the Government. 
"(b) This section shall not affect the Commission's authority, 
under chapter 5 of title 44, United States Code, to operate a 
field printing plant.". 
SEC. 3541. ACCOUNTING POLICIES. 
(a) SECTION 1311.—Section 1311(a) (22 U.S.C. 3721(a)) is 
amended by striking out "the Accounting and Auditing Act of 1950 
(31 U.S.C. 65 et seq.)" in the first sentence and inserting in lieu 
thereof "chapter 91 of title 31, United States Code,". 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2867 
(b) SECTION 1313.—Section 1313 (22 U.S.C. 3723) is amended 
by striking out "the Accounting and Auditing Act of 1950 (31 
U.S.C. 65 et seq.)" in subsections (a) and (c) £ind inserting in 
lieu thereof "chapter 91 of title 31, United States Code,". 
SEC. 3542. INTERAGENCY SERVICES; REIMBURSEMENTS. 
Section 1321(e) (22 U.S.C. 3731(e)) is amended by adding at 
the end the following sentence: 
"Notwithstanding the provisions relating to the availability of ade-
quate schools contained in section 5924(4)(A) of title 5, United 
States Code, the Commission shall by regulation determine the 
extent to which costs of educational services may be defrayed under 
this subsection.". 
SEC. 3543. POSTAL SERVICE. 
Section 1331 (22 U.S.C. 3741) is amended to read as follows: 
"POSTAL SERVICE 
"SEC. 1331. (a) The Commission shall take possession of and 
administer the funds of the Canal Zone postal service and shall 
assume its obligations. 
"(b) Effective December 1, 1999, neither the Commission nor 
the United States (Government shall be responsible for the distribu-
tion of any accumulated unpaid balances relating to Canal Zone 
postal-savings deposits, postal-savings certificates, and postal 
money orders. 
"(c) Mail addressed to the Canal Zone from or through the 
continental United States may be routed by the United States 
Postal Service to the military post offices of the United States 
Armed Forces in the Republic of Panama. Such military post offices 
shall provide the required directory services and shall accept such 
mail to the extent permitted under the Panama Canal Treaty 
of 1977 and related agreements. The Commission shall furnish 
personnel, records, and other services to such military post offices 
to assure wherever appropriate the distribution, rerouting, or return 
of such mail.". 
SEC. 3544. INVESTIGATION OF ACCIDENTS OR INJURY GIVING RISE 
TO CLAIM. 
Section 1417(1) (22 U.S.C. 3777(1)) is amended to read as 
follows: 
"(1) an investigation of the accident or injury giving rise 
to the claim has been completed, which shall include a hearing 
by the Board of Local Inspectors of the Commission; and". 
SEC. 3545. OPERATIONS REGULATIONS. 
Section 
1801 (22 U.S.C. 3811) is amended by 
striking 
"President" and inserting "Commission". 
SEC. 3546. MISCELLANEOUS REPEALS. 
(a) REPEALS.—The following provisions are repealed: 
(1) Section 1605 (22 U.S.C. 3795), relating to interim toll 
adjustment. 
(2) Section 1701 (22 U.S.C. 3801), relating to the authority 
of the President to prescribe certain regulations. 
(3) Section 1702 (22 U.S.C. 3802), relating to the authority 
of the Panama 
Canal 
Commission to prescribe 
certain 
regulations. 
Regulations. 
Effective date. 
Records. 
110 STAT. 2868 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(4) Title II (22 U.S.C. 3841-3852), relating to the Treaty 
transition period. 
(5) Chapter 1 of title III (22 U.S.C. 3861), relating to 
cemeteries. 
22 use 3683. 
(6) Section 1246, relating to appliances for certain injured 
employees. 
(7) Section 1251, relating to leave for jury or witness 
service. 
22 use 3711. 
(8) Section 1301, relating to Canal Zone Government funds. 
,22 use 3723. 
(9) Section 1313(c), relating to audits. 
(b) 
CONFORMING 
AMENDMENTS.—Section 
1313 
is 
further 
amended by redesignating subsections (d) and (e) as subsections 
(c) and (d), respectively. 
SEC. 3547. EXEMPTION FROM METRIC CONVERSION ACT OF 1975. 
22 use 3873. 
Section 3302 is amended to read as follows: 
"EXEMPTION FROM METRIC CONVERSION ACT OF 1975 
"SEC 3302. The Commission is exempt from the provisions 
of the Metric Conversion Act of 1975 (15 U.S.C. 205a et seq.).". 
SEC. 3548. CONFORMING AND CLERICAL AMENDMENTS. 
(a) TITLE 5 EMPLOYMENT LAW.—^Title 5, United States Code, 
is amended as follows: 
(1) Section 3401(1) is amended— 
(A) by striking out clause (v); and 
(B) by redesignating clauses (vi), (vii), and (viii) as 
clauses (v), (vi), and (vii), respectively. 
(2) Section 5102 is amended— 
(A) in subsection (a)(1)— 
(i) by striking out clause (vi); and 
(ii) by redesignating clauses (vii), (viii), (ix), (x), 
and (xi) as clauses (vi), (vii), (viii), (ix), and (x), respec-
tively; and 
(B) in subsection (c), by striking out paragraph (12). 
(3) Subchapter IV of chapter 53 is amended— 
(A) in section 5342(a)(l>— 
(i) by striking out subparagraph (G); and 
(ii) by redesignating subparagraphs (H), (I), (J), 
(K), and (L) as subparagraphs (G), (H), (I), (J), and 
(K) respectively; 
(B) in section 5343(a)(5), by striking out "the areas 
and installations in the Republic of Panama" £ind all that 
follows through "Panama Canal Act of 1979),"; and 
(C) in section 5348— 
(i) by striking out subsection (b); 
(ii) by redesignating subsection (c) as subsection 
(b); and 
(iii) in subsection (a), by striking out "subsections 
(b) and (c)" and inserting in lieu thereof "sub-
section (b)". 
(4) Section 5373 is amended— 
(A) by striking out paragraph (1); and 
(B) by redesignating paragraphs (2), (3), and (4) as 
paragraphs (1), (2), and (3) respectively. 
(5) Section 5537(c) is amended by striking out "the United 
States District Court for the District of the Canal Zone, the 
PUBLIC LAW 104-201—SEPT. 23, 1996 
110 STAT. 2869 
District Court of Guam, and the District Court of the Virgin 
Islands." and inserting in lieu thereof "the District Court of 
Guam and the District Court of the Virgin Islands.". 
(6) Section 5541(2)(xii) is amended— 
(A) 
by 
inserting 
"or" 
after 
"Services 
Admini-
stration,"; and 
(B) by striking out ", or a vessel employee of the 
Panama Canal Commission"; 
(7) Section 5924(3) is amended by striking out the last 
sentence. 
(8) Section 6322(a) is amended— 
(A) by striking out "Puerto Rico," and inserting in 
lieu thereof "Puerto Rico or"; and 
(B) by striking out ", or the Republic of Panama". 
(9) Section 7901(f) is amended to read as follows: 
"(f) The health programs conducted by the Tennessee Valley 
Authority are not affected by this section.". 
(b) CROSS REFERENCES IN PANAMA CANAL ACT.— 
(1) Section 1211(1)(B) (22 U.S.C. 3651(1)(B)) is amended 
by striking out "section 1212(B)(2)" and inserting in lieu thereof 
"section 1212(b)". 
(2) Section 1303 (22 U.S.C. 3713) is amended by striking 
out "section 1302(c)(1)" both places it appears and inserting 
in lieu thereof "section 1302(b)(1)". 
(3) Section 1341(f) (22 U.S.C. 3751(f)) is amended by strik-
ing out "section 1302(c)" and inserting in lieu thereof "section 
1302(b)". 
(c) SECTION HEADINGS.— 
(1) The heading of section 3 (22 U.S.C. 3602) is amended 
to read as follows: 
"DEFINITIONS". 
(2) The heading of section 1245 (22 U.S.C. 3682) is amended 
to read as follows: 
"ADMINISTRATION OF CERTAIN DISABILITY BENEFITS". 
(d) TABLE OF CONTENTS.—^The table of contents in section 1 
is amended as follows: 
(1) The items relating to sections 1101, 1102a, 1102b, and 
1313 are amended by inserting "Sec." before the section number. 
(2) The item relating to section 3 is amended to read 
as follows: 
"Sec. 3. Definitions.". 
(3) The item relating to section 1104 is amended to read 
as follows: 
"Sec. 1104. Deputy Administrator.". 
(4) The items relating to sections 1209 and 1210 are 
amended to read as follows: 
"Sec. 1209. Applicability of certain benefits. 
"Sec. 1210. Travel and transportation.". 
(5) The items relating to sections 1223 and 1224 are 
amended to read as follows: 
"Sec. 1223. Central Examining Ofiice. 
"Sec. 1224. Applicability of title 5, United States Code.". 
110 STAT. 2870 
PUBLIC LAW 104-201—SEPT. 23, 1996 
(6) The item relating to section 1245 is amended to read 
as follows: 
"Sec. 1245. Administration of certain disability benefits.". 
(7) The item relating to section 3302 is amended to read 
as follows: 
"Sec. 3302. Exemption fit)m Metric Conversion Act of 1975.". 
(8) Such table of contents is further amended by inserting 
after the item relating to section 1305 the following new item: 
"Sec. 1306. Printing.". 
(9) Such table of contents is further amended— 
(A) by striking out the items relating to sections 1214, 
1246, 1251, 1301, 1605, 1701, 1702, 2101, 2201, 2202, 2203, 
2204, 2205, 2206, 2301, 2401, 2402, and 3101; and 
(B) by striking out the items relating to the heading 
of title II, the headings of chapters 1, 2, 3, and 4 of 
such title, and the heading of chapter 1 of title III. 
SEC. 3549. REPEAL OF PANAMA CANAL CODE. 
The Panama Canal Code is repealed. 
Approved September 23, 1996. 
LEGISLATIVE HISTORY—H.R. 3230 (S. 1745): 
HOUSE REPORTS: Nos. 104-563 (Comm. on National Security) and 104-724 
(Comm. of Conference). 
SENATE REPORTS: Nos. 104-267 (Comm. on Armed Services) and 104-278 (Select 
Comm. on Intelligence) both accompanying S. 1745. 
CONGRESSIONAL RECORD, Vol. 142 (1996): 
May 14, 15, considered and passed House. 
June 18-20, 24-28, July 10, S. 1745 considered and passed Senate; H.R. 
3230, amended, passed in lieu. 
Aug. 1, House agreed to conference report. 
Sept. 10, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996): 
Sept. 23, Presidential remarks and statement.