[Pages H351-H736]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

CONFERENCE REPORT ON S. 1124

Mr. SPENCE submitted the following conference report and statement on
the bill (S. 1124), to authorize appropriations for fiscal year 1996
for military activities of the Department of Defense, to prescribe
personnel strengths for such fiscal year for the Armed Forces, and for
other purposes:

Conference Report (H. Rept. 104-450)

The committee of conference on the disagreeing votes of the
two Houses on the amendments of the House to the bill (S.
1124), to authorize appropriations for fiscal year 1996 for
military activities of the Department of Defense, to
prescribe personnel strengths for such fiscal year for the
Armed Forces, and for other purposes, having met, after full
and free conference, have agreed to recommend and do
recommend to their respective Houses as follows:
That the Senate recede from its disagreement to the
amendment of the House to the text of the bill and agree to
the same with an amendment as follows:
In lieu of the matter proposed to be inserted by the House
amendment, insert the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``National Defense
Authorization Act for Fiscal Year 1996''.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF
CONTENTS.

(a) Divisions.--This Act is organized into five divisions
as follows:
(1) Division A--Department of Defense Authorizations.
(2) Division B--Military Construction Authorizations.
(3) Division C--Department of Energy National Security
Authorizations and Other Authorizations.
(4) Division D--Federal Acquisition Reform.
(5) Division E--Information Technology Management Reform.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
Sec. 4. Extension of time for submission of reports.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

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. Procurement of OH-58D Armed Kiowa Warrior helicopters.
Sec. 112. Repeal of requirements for armored vehicle upgrades.
Sec. 113. Multiyear procurement of helicopters.
Sec. 114. Report on AH-64D engine upgrades.
Sec. 115. Requirement for use of previously authorized multiyear
procurement authority for Army small arms procurement.

Subtitle C--Navy Programs

Sec. 131. Nuclear attack submarines.
Sec. 132. Research for advanced submarine technology.
Sec. 133. Cost limitation for Seawolf submarine program.
Sec. 134. Repeal of prohibition on backfit of Trident submarines.
Sec. 135. Arleigh Burke class destroyer program.
Sec. 136. Acquisition program for crash attenuating seats.
Sec. 137. T-39N trainer aircraft.
Sec. 138. Pioneer unmanned aerial vehicle program.

Subtitle D--Air Force Programs

Sec. 141. B-2 aircraft program.
Sec. 142. Procurement of B-2 bombers.
Sec. 143. MC-130H aircraft program.

Subtitle E--Chemical Demilitarization Program

Sec. 151. Repeal of requirement to proceed expeditiously with
development of chemical demilitarization cryofracture
facility at Tooele Army Depot, Utah.
Sec. 152. Destruction of existing stockpile of lethal chemical agents
and munitions.
Sec. 153. Administration of chemical demilitarization program.

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic research and exploratory development.
Sec. 203. Modifications to Strategic Environmental Research and
Development Program.
Sec. 204. Defense dual use technology initiative.

Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Tactical manned reconnaissance.
Sec. 213. Joint Advanced Strike Technology (JAST) program.
Sec. 214. Development of laser program.
Sec. 215. Navy mine countermeasures program.
Sec. 216. Space-based infrared system.
Sec. 217. Defense Nuclear Agency programs.
Sec. 218. Counterproliferation support program.
Sec. 219. Nonlethal weapons study.
Sec. 220. Federally funded research and development centers and
university-affiliated research centers.
Sec. 221. Joint seismic program and global seismic network.
Sec. 222. Hydra-70 rocket product improvement program.
Sec. 223. Limitation on obligation of funds until receipt of electronic
combat consolidation master plan.
Sec. 224. Report on reductions in research, development, test, and
evaluation.
Sec. 225. Advanced Field Artillery System (Crusader).
Sec. 226. Demilitarization of conventional munitions, rockets, and
explosives.
Sec. 227. Defense Airborne Reconnaissance program.

Subtitle C--Ballistic Missile Defense Act of 1995

Sec. 231. Short title.
Sec. 232. Findings.
Sec. 233. Ballistic Missile Defense policy.
Sec. 234. Theater Missile Defense architecture.
Sec. 235. Prohibition on use of funds to implement an international
agreement concerning Theater Missile Defense systems.
Sec. 236. Ballistic Missile Defense cooperation with allies.
Sec. 237. ABM Treaty defined.
Sec. 238. Repeal of Missile Defense Act of 1991.

Subtitle D--Other Ballistic Missile Defense Provisions

Sec. 251. Ballistic Missile Defense program elements.
Sec. 252. Testing of Theater Missile Defense interceptors.
Sec. 253. Repeal of missile defense provisions.

Subtitle E--Miscellaneous Reviews, Studies, and Reports

Sec. 261. Precision-guided munitions.
Sec. 262. Review of C4I by National Research Council.
Sec. 263. Analysis of consolidation of basic research accounts of
military departments.
Sec. 264. Change in reporting period from calendar year to fiscal year
for annual report on certain contracts to colleges and
universities.
Sec. 265. Aeronautical research and test capabilities assessment.

Subtitle F--Other Matters

Sec. 271. Advanced lithography program.
Sec. 272. Enhanced fiber optic guided missile (EFOG-M) system.
Sec. 273. States eligible for assistance under Defense Experimental
Program To Stimulate Competitive Research.
Sec. 274. Cruise missile defense initiative.
Sec. 275. Modification to university research initiative support
program.
Sec. 276. Manufacturing technology program.
Sec. 277. Five-year plan for consolidation of defense laboratories and
test and evaluation centers.
Sec. 278. Limitation on T-38 avionics upgrade program.
Sec. 279. Global Positioning System.
Sec. 280. Revision of authority for providing Army support for the
National Science Center for Communications and
Electronics.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Civil Air Patrol.

Subtitle B--Depot-Level Activities

Sec. 311. Policy regarding performance of depot-level maintenance and
repair for the Department of Defense.
Sec. 312. Management of depot employees.
Sec. 313. Extension of authority for aviation depots and naval
shipyards to engage in defense-related production and
services.
Sec. 314. Modification of notification requirement regarding use of
core logistics functions waiver.

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Subtitle C--Environmental Provisions

Sec. 321. Revision of requirements for agreements for services under
environmental restoration program.
Sec. 322. Addition of amounts creditable to Defense Environmental
Restoration Account.
Sec. 323. Use of Defense Environmental Restoration Account.
Sec. 324. Revision of authorities relating to restoration advisory
boards.
Sec. 325. Discharges from vessels of the Armed Forces.

Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Operation of commissary system.
Sec. 332. Limited release of commissary stores sales information to
manufacturers, distributors, and other vendors doing
business with Defense Commissary Agency.
Sec. 333. Economical distribution of distilled spirits by
nonappropriated fund instrumentalities.
Sec. 334. Transportation by commissaries and exchanges to overseas
locations.
Sec. 335. Demonstration project for uniform funding of morale, welfare,
and recreation activities at certain military
installations.
Sec. 336. Operation of combined exchange and commissary stores.
Sec. 337. Deferred payment programs of military exchanges.
Sec. 338. Availability of funds to offset expenses incurred by Army and
Air Force Exchange Service on account of troop reductions
in Europe.
Sec. 339. Study regarding improving efficiencies in operation of
military exchanges and other morale, welfare, and
recreation activities and commissary stores.
Sec. 340. Repeal of requirement to convert ships' stores to
nonappropriated fund instrumentalities.
Sec. 341. Disposition of excess morale, welfare, and recreation funds.
Sec. 342. Clarification of entitlement to use of morale, welfare, and
recreation facilities by members of reserve components
and dependents.

Subtitle E--Performance of Functions by Private-Sector Sources

Sec. 351. Competitive procurement of printing and duplication services.
Sec. 352. Direct vendor delivery system for consumable inventory items
of Department of Defense.
Sec. 353. Payroll, finance, and accounting functions of the Department
of Defense.
Sec. 354. Demonstration program to identify overpayments made to
vendors.
Sec. 355. Pilot program on private operation of defense dependents'
schools.
Sec. 356. Program for improved travel process for the Department of
Defense.
Sec. 357. Increased reliance on private-sector sources for commercial
products and services.

Subtitle F--Miscellaneous Reviews, Studies, and Reports

Sec. 361. Quarterly readiness reports.
Sec. 362. Restatement of requirement for semiannual reports to Congress
on transfers from high-priority readiness appropriations.
Sec. 363. Report regarding reduction of costs associated with contract
management oversight.
Sec. 364. Reviews of management of inventory control points and
Material Management Standard System.
Sec. 365. Report on private performance of certain functions performed
by military aircraft.
Sec. 366. Strategy and report on automated information systems of
Department of Defense.

Subtitle G--Other Matters

Sec. 371. Codification of Defense Business Operations Fund.
Sec. 372. Clarification of services and property that may be exchanged
to benefit the historical collection of the Armed Forces.
Sec. 373. Financial management training.
Sec. 374. Permanent authority for use of proceeds from the sale of
certain lost, abandoned, or unclaimed property.
Sec. 375. Sale of military clothing and subsistence and other supplies
of the Navy and Marine Corps.
Sec. 376. Personnel services and logistical support for certain
activities held on military installations.
Sec. 377. Retention of monetary awards.
Sec. 378. Provision of equipment and facilities to assist in emergency
response actions.
Sec. 379. Report on Department of Defense military and civil defense
preparedness to respond to emergencies resulting from a
chemical, biological, radiological, or nuclear attack.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Temporary variation in DOPMA authorized end strength
limitations for active duty Air Force and Navy officers
in certain grades.
Sec. 403. Certain general and flag officers awaiting retirement not to
be counted.

Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the
Reserves.
Sec. 413. Counting of certain active component personnel assigned in
support of reserve component training.
Sec. 414. Increase in number of members in certain grades authorized to
serve on active duty in support of the Reserves.
Sec. 415. Reserves on active duty in support of cooperative threat
reduction programs not to be counted.
Sec. 416. Reserves on active duty for military-to-military contacts and
comparable activities not to be counted.

Subtitle C--Military Training Student Loads

Sec. 421. Authorization of training student loads.

Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.
Sec. 432. Authorization for increase in active-duty end strengths.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Sec. 501. Joint officer management.
Sec. 502. Retired grade for officers in grades above major general and
rear admiral.
Sec. 503. Wearing of insignia for higher grade before promotion.
Sec. 504. Authority to extend transition period for officers selected
for early retirement.
Sec. 505. Army officer manning levels.
Sec. 506. Authority for medical department officers other than
physicians to be appointed as Surgeon General.
Sec. 507. Deputy Judge Advocate General of the Air Force.
Sec. 508. Authority for temporary promotions for certain Navy
lieutenants with critical skills.
Sec. 509. Retirement for years of service of Directors of Admissions of
Military and Air Force academies.

Subtitle B--Matters Relating to Reserve Components

Sec. 511. Extension of certain Reserve officer management authorities.
Sec. 512. Mobilization income insurance program for members of Ready
Reserve.
Sec. 513. Military technician full-time support program for Army and
Air Force reserve components.
Sec. 514. Revisions to Army Guard Combat Reform Initiative to include
Army Reserve under certain provisions and make certain
revisions.
Sec. 515. Active duty associate unit responsibility.
Sec. 516. Leave for members of reserve components performing public
safety duty.
Sec. 517. Department of Defense funding for National Guard
participation in joint disaster and emergency assistance
exercises.

Subtitle C--Decorations and Awards

Sec. 521. Award of Purple Heart to persons wounded while held as
prisoners of war before April 25, 1962.
Sec. 522. Authority to award decorations recognizing acts of valor
performed in combat during the Vietnam conflict.
Sec. 523. Military intelligence personnel prevented by secrecy from
being considered for decorations and awards.
Sec. 524. Review regarding upgrading of Distinguished-Service Crosses
and Navy Crosses awarded to Asian-Americans and Native
American Pacific Islanders for World War II service.
Sec. 525. Eligibility for Armed Forces Expeditionary Medal based upon
service in El Salvador.
Sec. 526. Procedure for consideration of military decorations not
previously submitted in timely fashion.

Subtitle D--Officer Education Programs

Part I--Service Academies

Sec. 531. Revision of service obligation for graduates of the service
academies.
Sec. 532. Nominations to service academies from Commonwealth of the
Northern Marianas Islands.
Sec. 533. Repeal of requirement for athletic director and
nonappropriated fund account for the athletics programs
at the service academies.
Sec. 534. Repeal of requirement for program to test privatization of
service academy preparatory schools.

Part II--Reserve Officer Training Corps

Sec. 541. ROTC access to campuses.

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Sec. 542. ROTC scholarships for the National Guard.
Sec. 543. Delay in reorganization of Army ROTC regional headquarters
structure.
Sec. 544. Duration of field training or practice cruise required under
the Senior ROTC program.
Sec. 545. Active duty officers detailed to ROTC duty at senior military
colleges to serve as Commandant and Assistant Commandant
of Cadets and as tactical officers.

Subtitle E--Miscellaneous Reviews, Studies, and Reports

Sec. 551. Report concerning appropriate forum for judicial review of
Department of Defense personnel actions.
Sec. 552. Comptroller General review of proposed Army end strength
allocations.
Sec. 553. Report on manning status of highly deployable support units.
Sec. 554. Review of system for correction of military records.
Sec. 555. Report on the consistency of reporting of fingerprint cards
and final disposition forms to the Federal Bureau of
Investigation.

Subtitle F--Other Matters

Sec. 561. Equalization of accrual of service credit for officers and
enlisted members.
Sec. 562. Army Ranger training.
Sec. 563. Separation in cases involving extended confinement.
Sec. 564. Limitations on reductions in medical personnel.
Sec. 565. Sense of Congress concerning personnel tempo rates.
Sec. 566. Separation benefits during force reduction for officers of
commissioned corps of National Oceanic and Atmospheric
Administration.
Sec. 567. Discharge of members of the Armed Forces who have the HIV-1
virus.
Sec. 568. Revision and codification of Military Family Act and Military
Child Care Act.
Sec. 569. Determination of whereabouts and status of missing persons.
Sec. 570. Associate Director of Central Intelligence for Military
Support.

Subtitle G--Support for Non-Department of Defense Activities

Sec. 571. Repeal of certain civil-military programs.
Sec. 572. Training activities involving support and services for
eligible organizations and activities outside the
Department of Defense.
Sec. 573. National Guard civilian youth opportunities pilot program.
Sec. 574. Termination of funding for Office of Civil-Military Programs
in Office of the Secretary of Defense.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1996.
Sec. 602. Limitation on basic allowance for subsistence for members
residing without dependents in Government quarters.
Sec. 603. Election of basic allowance for quarters instead of
assignment to inadequate quarters.
Sec. 604. Payment of basic allowance for quarters to members in pay
grade E-6 who are assigned to sea duty.
Sec. 605. Limitation on reduction of variable housing allowance for
certain members.
Sec. 606. Clarification of limitation on eligibility for family
separation allowance.

Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonuses for reserve forces.
Sec. 612. Extension of certain bonuses and special pay for nurse
officer candidates, registered nurses, and nurse
anesthetists.
Sec. 613. Extension of authority relating to payment of other bonuses
and special pays.
Sec. 614. Codification and extension of special pay for critically
short wartime health specialists in the Selected
Reserves.
Sec. 615. Hazardous duty incentive pay for warrant officers and
enlisted members serving as air weapons controllers.
Sec. 616. Aviation career incentive pay.
Sec. 617. Clarification of authority to provide special pay for nurses.
Sec. 618. Continuous entitlement to career sea pay for crew members of
ships designated as tenders.
Sec. 619. Increase in maximum rate of special duty assignment pay for
enlisted members serving as recruiters.

Subtitle C--Travel and Transportation Allowances

Sec. 621. Repeal of requirement regarding calculation of allowances on
basis of mileage tables.
Sec. 622. Departure allowances.
Sec. 623. Transportation of nondependent child from member's station
overseas after loss of dependent status while overseas.
Sec. 624. Authorization of dislocation allowance for moves in
connection with base realignments and closures.

Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 631. Effective date for military retiree cost-of-living
adjustments for fiscal years 1996, 1997, and 1998.
Sec. 632. Denial of non-regular service retired pay for Reserves
receiving certain court-martial sentences.
Sec. 633. Report on payment of annuities for certain military surviving
spouses.
Sec. 634. Payment of back quarters and subsistence allowances to World
War II veterans who served as guerilla fighters in the
Philippines.
Sec. 635. Authority for relief from previous overpayments under minimum
income widows program.
Sec. 636. Transitional compensation for dependents of members of the
Armed Forces separated for dependent abuse.

Subtitle E--Other Matters

Sec. 641. Payment to survivors of deceased members for all leave
accrued.
Sec. 642. Repeal of reporting requirements regarding compensation
matters.
Sec. 643. Recoupment of administrative expenses in garnishment actions.
Sec. 644. Report on extending to junior noncommissioned officers
privileges provided for senior noncommissioned officers.
Sec. 645. Study regarding joint process for determining location of
recruiting stations.
Sec. 646. Automatic maximum coverage under Servicemen's Group Life
Insurance.
Sec. 647. Termination of Servicemen's Group Life Insurance for members
of the Ready Reserve who fail to pay premiums.

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Health Care Services

Sec. 701. Modification of requirements regarding routine physical
examinations and immunizations under CHAMPUS.
Sec. 702. Correction of inequities in medical and dental care and death
and disability benefits for certain Reserves.
Sec. 703. Medical care for surviving dependents of retired Reserves who
die before age 60.
Sec. 704. Medical and dental care for members of the Selected Reserve
assigned to early deploying units of the Army Selected
Reserve.
Sec. 705. Dental insurance for members of the Selected Reserve.
Sec. 706. Permanent authority to carry out specialized treatment
facility program.

Subtitle B--TRICARE Program

Sec. 711. Definition of TRICARE program.
Sec. 712. Priority use of military treatment facilities for persons
enrolled in managed care initiatives.
Sec. 713. Staggered payment of enrollment fees for TRICARE program.
Sec. 714. Requirement of budget neutrality for TRICARE program to be
based on entire program.
Sec. 715. Training in health care management and administration for
TRICARE lead agents.
Sec. 716. Pilot program of individualized residential mental health
services.
Sec. 717. Evaluation and report on TRICARE program effectiveness.
Sec. 718. Sense of Congress regarding access to health care under
TRICARE program for covered beneficiaries who are
medicare eligible.

Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Delay of termination of status of certain facilities as
Uniformed Services Treatment Facilities.
Sec. 722. Limitation on expenditures to support Uniformed Services
Treatment Facilities.
Sec. 723. Application of CHAMPUS payment rules in certain cases.
Sec. 724. Application of Federal Acquisition Regulation to
participation agreements with Uniformed Services
Treatment Facilities.
Sec. 725. Development of plan for integrating Uniformed Services
Treatment Facilities in managed care programs of
Department of Defense.
Sec. 726. Equitable implementation of uniform cost sharing requirements
for Uniformed Services Treatment Facilities.
Sec. 727. Elimination of unnecessary annual reporting requirement
regarding Uniformed Services Treatment Facilities.

Subtitle D--Other Changes to Existing Laws Regarding Health Care
Management

Sec. 731. Maximum allowable payments to individual health-care
providers under CHAMPUS.
Sec. 732. Notification of certain CHAMPUS covered beneficiaries of loss
of CHAMPUS eligibility.

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Sec. 733. Personal services contracts for medical treatment facilities
of the Coast Guard.
Sec. 734. Identification of third-party payer situations.
Sec. 735. Redesignation of Military Health Care Account as Defense
Health Program Account and two-year availability of
certain account funds.
Sec. 736. Expansion of financial assistance program for health-care
professionals in reserve components to include dental
specialties.
Sec. 737. Applicability of limitation on prices of pharmaceuticals
procured for the Coast Guard.
Sec. 738. Restriction on use of Department of Defense facilities for
abortions.

Subtitle E--Other Matters

Sec. 741. Triservice nursing research.
Sec. 742. Termination of program to train military psychologists to
prescribe psychotropic medications.
Sec. 743. Waiver of collection of payments due from certain persons
unaware of loss of CHAMPUS eligibility.
Sec. 744. Demonstration program to train military medical personnel in
civilian shock trauma units.
Sec. 745. Study regarding Department of Defense efforts to determine
appropriate force levels of wartime medical personnel.
Sec. 746. Report on improved access to military health care for covered
beneficiaries entitled to medicare.
Sec. 747. Report on effect of closure of Fitzsimons Army Medical
Center, Colorado, on provision of care to military
personnel, retired military personnel, and their
dependents.
Sec. 748. Sense of Congress on continuity of health care services for
covered beneficiaries adversely affected by closures of
military medical treatment facilities.
Sec. 749. State recognition of military advance medical directives.

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
MATTERS

Subtitle A--Acquisition Reform

Sec. 801. Inapplicability of limitation on expenditure of
appropriations to contracts at or below simplified
acquisition threshold.
Sec. 802. Authority to delegate contracting authority.
Sec. 803. Quality control in procurements of critical aircraft and ship
spare parts.
Sec. 804. Fees for certain testing services.
Sec. 805. Coordination and communication of defense research
activities.
Sec. 806. Addition of certain items to domestic source limitation.
Sec. 807. Encouragement of use of leasing authority.
Sec. 808. Cost reimbursement rules for indirect costs attributable to
private sector work of defense contractors.
Sec. 809. Subcontracts for ocean transportation services.
Sec. 810. Prompt resolution of audit recommendations.
Sec. 811. Test program for negotiation of comprehensive subcontracting
plans.
Sec. 812. Procurement of items for experimental or test purposes.
Sec. 813. Use of funds for acquisition of designs, processes, technical
data, and computer software.
Sec. 814. Independent cost estimates for major defense acquisition
programs.
Sec. 815. Construction, repair, alteration, furnishing, and equipping
of naval vessels.

Subtitle B--Other Matters

Sec. 821. Procurement technical assistance programs.
Sec. 822. Defense facility-wide pilot program.
Sec. 823. Treatment of Department of Defense cable television franchise
agreements.
Sec. 824. Extension of pilot mentor-protege program.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--General Matters

Sec. 901. Organization of the Office of the Secretary of Defense.
Sec. 902. Reduction in number of Assistant Secretary of Defense
positions.
Sec. 903. Deferred repeal of various statutory positions and offices in
Office of the Secretary of Defense.
Sec. 904. Redesignation of the position of Assistant to the Secretary
of Defense for Atomic Energy.
Sec. 905. Joint Requirements Oversight Council.
Sec. 906. Restructuring of Department of Defense acquisition
organization and workforce.
Sec. 907. Report on Nuclear Posture Review and on plans for nuclear
weapons management in event of abolition of Department of
Energy.
Sec. 908. Redesignation of Advanced Research Projects Agency.

Subtitle B--Financial Management

Sec. 911. Transfer authority regarding funds available for foreign
currency fluctuations.
Sec. 912. Defense Modernization Account.
Sec. 913. Designation and liability of disbursing and certifying
officials.
Sec. 914. Fisher House trust funds.
Sec. 915. Limitation on use of authority to pay for emergency and
extraordinary expenses.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Improved funding mechanisms for unbudgeted operations.
Sec. 1004. Operation Provide Comfort.
Sec. 1005. Operation Enhanced Southern Watch.
Sec. 1006. Authority for obligation of certain unauthorized fiscal year
1995 defense appropriations.
Sec. 1007. Authorization of prior emergency supplemental appropriations
for fiscal year 1995.
Sec. 1008. Authorization reductions to reflect savings from revised
economic assumptions.

Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Iowa class battleships.
Sec. 1012. Transfer of naval vessels to certain foreign countries.
Sec. 1013. Contract options for LMSR vessels.
Sec. 1014. National Defense Reserve Fleet.
Sec. 1015. Naval salvage facilities.
Sec. 1016. Vessels subject to repair under phased maintenance
contracts.
Sec. 1017. Clarification of requirements relating to repairs of
vessels.
Sec. 1018. Sense of Congress concerning naming of amphibious ships.
Sec. 1019. Sense of Congress concerning naming of naval vessel.
Sec. 1020. Transfer of riverine patrol craft.

Subtitle C--Counter-Drug Activities

Sec. 1021. Revision and clarification of authority for Federal support
of drug interdiction and counter-drug activities of the
National Guard.

Subtitle D--Civilian Personnel

Sec. 1031. Management of Department of Defense civilian personnel.
Sec. 1032. Conversion of military positions to civilian positions.
Sec. 1033. Elimination of 120-day limitation on details of certain
employees.
Sec. 1034. Authority for civilian employees of Department of Defense to
participate voluntarily in reductions in force.
Sec. 1035. Authority to pay severance payments in lump sums.
Sec. 1036. Continued health insurance coverage.
Sec. 1037. Revision of authority for appointments of involuntarily
separated military reserve technicians.
Sec. 1038. Wearing of uniform by National Guard technicians.
Sec. 1039. Military leave for military reserve technicians for certain
duty overseas.
Sec. 1040. Personnel actions involving employees of nonappropriated
fund instrumentalities.
Sec. 1041. Coverage of nonappropriated fund employees under authority
for flexible and compressed work schedules.
Sec. 1042. Limitation on provision of overseas living quarters
allowances for nonappropriated fund instrumentality
employees.
Sec. 1043. Elections relating to retirement coverage.
Sec. 1044. Extension of temporary authority to pay civilian employees
with respect to the evacuation from Guantanamo, Cuba.

Subtitle E--Miscellaneous Reporting Requirements

Sec. 1051. Report on fiscal year 1997 budget submission regarding Guard
and reserve components.
Sec. 1052. Report on desirability and feasibility of providing
authority for use of funds derived from recovered losses
resulting from contractor fraud.
Sec. 1053. Report on national policy on protecting the national
information infrastructure against strategic attacks.
Sec. 1054. Report on Department of Defense boards and commissions.
Sec. 1055. Date for submission of annual report on special access
programs.

Subtitle F--Repeal of Certain Reporting and Other Requirements and
Authorities

Sec. 1061. Miscellaneous provisions of law.
Sec. 1062. Reports required by title 10, United States Code.
Sec. 1063. Reports required by defense authorization and appropriations
Acts.
Sec. 1064. Reports required by other provisions of law.

Subtitle G--Department of Defense Education Programs

Sec. 1071. Continuation of Uniformed Services University of the Health
Sciences.

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Sec. 1072. Additional graduate schools and programs at Uniformed
Services University of the Health Sciences.
Sec. 1073. Funding for adult education programs for military personnel
and dependents outside the United States.
Sec. 1074. Assistance to local educational agencies that benefit
dependents of members of the Armed Forces and Department
of Defense civilian employees.
Sec. 1075. Sharing of personnel of Department of Defense domestic
dependent schools and defense dependents' education
system.
Sec. 1076. Increase in reserve component Montgomery GI Bill educational
assistance allowance with respect to skills or
specialties for which there is a critical shortage of
personnel.
Sec. 1077. Date for annual report on reserve component Montgomery GI
Bill educational assistance program.
Sec. 1078. Scope of education programs of Community College of the Air
Force.
Sec. 1079. Amendments to education loan repayment programs.

Subtitle H--Other Matters

Sec. 1081. National defense technology and industrial base, defense
reinvestment, and defense conversion programs.
Sec. 1082. Ammunition industrial base.
Sec. 1083. Policy concerning excess defense industrial capacity.
Sec. 1084. Sense of Congress concerning access to secondary school
student information for recruiting purposes.
Sec. 1085. Disclosure of information concerning unaccounted for United
States personnel from the Korean Conflict, the Vietnam
era, and the Cold War.
Sec. 1086. Operational support airlift aircraft fleet.
Sec. 1087. Civil Reserve Air Fleet.
Sec. 1088. Damage or loss to personal property due to emergency
evacuation or extraordinary circumstances.
Sec. 1089. Authority to suspend or terminate collection actions against
deceased members.
Sec. 1090. Check cashing and exchange transactions for dependents of
United States Government personnel.
Sec. 1091. Designation of National Maritime Center.
Sec. 1092. Sense of Congress regarding historic preservation of Midway
Islands.
Sec. 1093. Sense of Senate regarding Federal spending.
Sec. 1094. Extension of authority for vessel war risk insurance.

TITLE XI--UNIFORM CODE OF MILITARY JUSTICE

Sec. 1101. Short title.
Sec. 1102. References to Uniform Code of Military Justice.

Subtitle A--Offenses

Sec. 1111. Refusal to testify before court-martial.
Sec. 1112. Flight from apprehension.
Sec. 1113. Carnal knowledge.

Subtitle B--Sentences

Sec. 1121. Effective date for forfeitures of pay and allowances and
reductions in grade by sentence of court-martial.
Sec. 1122. Required forfeiture of pay and allowances during
confinement.
Sec. 1123. Deferment of confinement.

Subtitle C--Pretrial and Post-Trial Actions

Sec. 1131. Article 32 investigations.
Sec. 1132. Submission of matters to the convening authority for
consideration.
Sec. 1133. Commitment of accused to treatment facility by reason of
lack of mental capacity or mental responsibility.

Subtitle D--Appellate Matters

Sec. 1141. Appeals by the United States.
Sec. 1142. Repeal of termination of authority for Chief Justice of
United States to designate Article III judges for
temporary service on Court of Appeals for the Armed
Forces.

Subtitle E--Other Matters

Sec. 1151. Advisory committee on criminal law jurisdiction over
civilians accompanying the Armed Forces in time of armed
conflict.
Sec. 1152. Time after accession for initial instruction in the Uniform
Code of Military Justice.
Sec. 1153. Technical amendment.

TITLE XII--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET
UNION

Sec. 1201. Specification of Cooperative Threat Reduction programs.
Sec. 1202. Fiscal year 1996 funding allocations.
Sec. 1203. Prohibition on use of funds for peacekeeping exercises and
related activities with Russia.
Sec. 1204. Revision to authority for assistance for weapons
destruction.
Sec. 1205. Prior notice to Congress of obligation of funds.
Sec. 1206. Report on accounting for United States assistance.
Sec. 1207. Limitation on assistance to nuclear weapons scientists of
former Soviet Union.
Sec. 1208. Limitations relating to offensive biological warfare program
of Russia.
Sec. 1209. Limitation on use of funds for chemical weapons destruction
facility.

TITLE XIII--MATTERS RELATING TO OTHER NATIONS

Subtitle A--Peacekeeping Provisions

Sec. 1301. Limitation on use of Department of Defense funds for United
States share of costs of United Nations peacekeeping
activities.

Subtitle B--Humanitarian Assistance Programs

Sec. 1311. Overseas humanitarian, disaster, and civic aid programs.
Sec. 1312. Humanitarian assistance.
Sec. 1313. Landmine clearance program.

Subtitle C--Arms Exports and Military Assistance

Sec. 1321. Defense export loan guarantees.
Sec. 1322. National security implications of United States export
control policy.
Sec. 1323. Department of Defense review of export licenses for certain
biological pathogens.
Sec. 1324. Annual reports on improving export control mechanisms and on
military assistance.
Sec. 1325. Report on personnel requirements for control of transfer of
certain weapons.

Subtitle D--Burdensharing and Other Cooperative Activities Involving
Allies and NATO

Sec. 1331. Accounting for burdensharing contributions.
Sec. 1332. Authority to accept contributions for expenses of relocation
within host nation of United States Armed Forces
overseas.
Sec. 1333. Revised goal for allied share of costs for United States
installations in Europe.
Sec. 1334. Exclusion of certain forces from European end strength
limitation.
Sec. 1335. Cooperative research and development agreements with NATO
organizations.
Sec. 1336. Support services for the Navy at the port of Haifa, Israel.

Subtitle E--Other Matters

Sec. 1341. Prohibition on financial assistance to terrorist countries.
Sec. 1342. Judicial assistance to the International Tribunal for
Yugoslavia and to the International Tribunal for Rwanda.
Sec. 1343. Semiannual reports concerning United States-People's
Republic of China Joint Defense Conversion Commission.

TITLE XIV--ARMS CONTROL MATTERS

Sec. 1401. Revision of definition of landmine for purposes of landmine
export moratorium.
Sec. 1402. Reports on moratorium on use by Armed Forces of
antipersonnel landmines.
Sec. 1403. Extension and amendment of counterproliferation authorities.
Sec. 1404. Limitation on retirement or dismantlement of strategic
nuclear delivery systems.
Sec. 1405. Sense of Congress on ABM treaty violations.
Sec. 1406. Sense of Congress on ratification of Chemical Weapons
Convention and START II Treaty.
Sec. 1407. Implementation of arms control agreements.
Sec. 1408. Iran and Iraq arms nonproliferation.

TITLE XV--TECHNICAL AND CLERICAL AMENDMENTS

Sec. 1501. Amendments related to Reserve Officer Personnel Management
Act.
Sec. 1502. Amendments to reflect name change of Committee on Armed
Services of the House of Representatives.
Sec. 1503. Miscellaneous amendments to title 10, United States Code.
Sec. 1504. Miscellaneous amendments to annual defense authorization
Acts.
Sec. 1505. Miscellaneous amendments to other laws.
Sec. 1506. Coordination with other amendments.

TITLE XVI--CORPORATION FOR THE PROMOTION OF RIFLE PRACTICE AND FIREARMS
SAFETY

Sec. 1601. Short title.

Subtitle A--Establishment and Operation of Corporation

Sec. 1611. Establishment of the Corporation.
Sec. 1612. Conduct of Civilian Marksmanship Program.
Sec. 1613. Eligibility for participation in Civilian Marksmanship
Program.
Sec. 1614. Issuance, loan, and sale of firearms and ammunition by the
Corporation.

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Sec. 1615. Transfer of firearms and ammunition from the Army to the
Corporation.
Sec. 1616. Reservation by the Army of firearms and ammunition for the
Corporation.
Sec. 1617. Army logistical support for the program.
Sec. 1618. General authorities of the Corporation.
Sec. 1619. Distribution of Corporate assets in event of dissolution.

Subtitle B--Transitional Provisions

Sec. 1621. Transfer of funds and property to the Corporation.
Sec. 1622. Continuation of eligibility for certain civil service
benefits for former Federal employees of Civilian
Marksmanship Program.
Sec. 1623. Certification of completion of transition.
Sec. 1624. Repeal of authority for conduct of Civilian Marksmanship
Program by the Army.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.

TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Revision of fiscal year 1995 authorization of appropriations
to clarify availability of funds for large anechoic
chamber facility, Patuxent River Naval Warfare Center,
Maryland.
Sec. 2206. Authority to carry out land acquisition project, Hampton
Roads, Virginia.
Sec. 2207. Acquisition of land, Henderson Hall, Arlington, Virginia.
Sec. 2208. Acquisition or construction of military family housing in
vicinity of San Diego, California.

TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition
projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Retention of accrued interest on funds deposited for
construction of family housing, Scott Air Force Base,
Illinois.

TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land
acquisition projects.
Sec. 2402. Military family housing private investment.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Limitations on use of Department of Defense Base Closure
Account 1990.
Sec. 2407. Modification of authority to carry out fiscal year 1995
projects.
Sec. 2408. Reduction in amounts authorized to be appropriated for
fiscal year 1994 contingency construction projects.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land
acquisition projects.
Sec. 2602. Reduction in amount authorized to be appropriated for fiscal
year 1994 Air National Guard Projects.
Sec. 2603. Correction in authorized uses of funds for Army National
Guard projects in Mississippi.

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be
specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1993
projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1992
projects.

TITLE XXVIII--GENERAL PROVISIONS

Subtitle A--Military Housing Privatization Initiative

Sec. 2801. Alternative authority for construction and improvement of
military housing.
Sec. 2802. Expansion of authority for limited partnerships for
development of military family housing.

Subtitle B--Other Military Construction Program and Military Family
Housing Changes

Sec. 2811. Special threshold for unspecified minor construction
projects to correct life, health, or safety deficiencies.
Sec. 2812. Clarification of scope of unspecified minor construction
authority.
Sec. 2813. Temporary authority to waive net floor area limitation for
family housing acquired in lieu of construction.
Sec. 2814. Reestablishment of authority to waive net floor area
limitation on acquisition by purchase of certain military
family housing.
Sec. 2815. Temporary authority to waive limitations on space by pay
grade for military family housing units.
Sec. 2816. Rental of family housing in foreign countries.
Sec. 2817. Clarification of scope of report requirement on cost
increases under contracts for military family housing
construction.
Sec. 2818. Authority to convey damaged or deteriorated military family
housing.
Sec. 2819. Energy and water conservation savings for the Department of
Defense.
Sec. 2820. Extension of authority to enter into leases of land for
special operations activities.
Sec. 2821. Disposition of amounts recovered as a result of damage to
real property.
Sec. 2822. Pilot program to provide interest rate buy down authority on
loans for housing within housing shortage areas at
military installations.

Subtitle C--Defense Base Closure and Realignment

Sec. 2831. Deposit of proceeds from leases of property located at
installations being closed or realigned.
Sec. 2832. In-kind consideration for leases at installations to be
closed or realigned.
Sec. 2833. Interim leases of property approved for closure or
realignment.
Sec. 2834. Authority to lease property requiring environmental
remediation at installations approved for closure or
realignment.
Sec. 2835. Final funding for Defense Base Closure and Realignment
Commission.
Sec. 2836. Exercise of authority delegated by the Administrator of
General Services.
Sec. 2837. Lease back of property disposed from installations approved
for closure or realignment.
Sec. 2838. Improvement of base closure and realignment process
regarding disposal of property.
Sec. 2839. Agreements for certain services at installations being
closed.
Sec. 2840. Authority to transfer property at military installations to
be closed to persons who construct or provide military
family housing.
Sec. 2841. Use of single base closure authorities for disposal of
property and facilities at Fort Holabird, Maryland.

Subtitle D--Land Conveyances Generally

Part I--Army Conveyances

Sec. 2851. Transfer of jurisdiction, Fort Sam Houston, Texas.
Sec. 2852. Transfer of jurisdiction, Fort Bliss, Texas.
Sec. 2853. Transfer of jurisdiction and land conveyance, Fort Devens
Military Reservation, Massachusetts.
Sec. 2854. Modification of land conveyance, Fort Belvoir, Virginia.
Sec. 2855. Land exchange, Fort Lewis, Washington.
Sec. 2856. Land exchange, Army Reserve Center, Gainesville, Georgia.
Sec. 2857. Land conveyance, Holston Army Ammunition Plant, Mount
Carmel, Tennessee.
Sec. 2858. Land conveyance, Indiana Army Ammunition Plant, Charlestown,
Indiana.
Sec. 2859. Land conveyance, Fort Ord, California.
Sec. 2860. Land conveyance, Parks Reserve Forces Training Area, Dublin,
California.
Sec. 2861. Land conveyance, Army Reserve Center, Youngstown, Ohio.
Sec. 2862. Land conveyance, Army Reserve Property, Fort Sheridan,
Illinois.
Sec. 2863. Land conveyance, property underlying Cummins Apartment
Complex, Fort Holabird, Maryland.
Sec. 2864. Modification of existing land conveyance, Army property,
Hamilton Air Force Base, California.

Part II--Navy Conveyances

Sec. 2865. Transfer of jurisdiction, Naval Weapons Industrial Reserve
Plant, Calverton, New York.
Sec. 2866. Modification of land conveyance, Naval Weapons Industrial
Reserve Plant, Calverton, New York.

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Sec. 2867. Land conveyance alternative to existing lease authority,
Naval Supply Center, Oakland, California.
Sec. 2868. Land conveyance, Naval Weapons Industrial Reserve Plant,
McGregor, Texas.
Sec. 2869. Land conveyance, Naval Surface Warfare Center, Memphis,
Tennessee.
Sec. 2870. Land conveyance, Navy property, Fort Sheridan, Illinois.
Sec. 2871. Land conveyance, Naval Communications Station, Stockton,
California.
Sec. 2872. Lease of property, Naval Air Station and Marine Corps Air
Station, Miramar, California.

Part III--Air Force Conveyances

Sec. 2874. Land acquisition or exchange, Shaw Air Force Base, South
Carolina.
Sec. 2875. Land conveyance, Elmendorf Air Force Base, Alaska.
Sec. 2876. Land conveyance, Radar Bomb Scoring Site, Forsyth, Montana.
Sec. 2877. Land conveyance, Radar Bomb Scoring Site, Powell, Wyoming.
Sec. 2878. Land conveyance, Avon Park Air Force Range, Florida.

Subtitle E--Land Conveyances Involving Utilities

Sec. 2881. Conveyance of resource recovery facility, Fort Dix, New
Jersey.
Sec. 2882. Conveyance of water and wastewater treatment plants, Fort
Gordon, Georgia.
Sec. 2883. Conveyance of electricity distribution system, Fort Irwin,
California.
Sec. 2884. Conveyance of water treatment plant, Fort Pickett, Virginia.

Subtitle F--Other Matters

Sec. 2891. Authority to use funds for certain educational purposes.
Sec. 2892. Department of Defense Laboratory Revitalization
Demonstration Program.
Sec. 2893. Authority for Port Authority of State of Mississippi to use
Navy property at Naval Construction Battalion Center,
Gulfport, Mississippi.
Sec. 2894. Prohibition on joint use of Naval Air Station and Marine
Corps Air Station, Miramar, California.
Sec. 2895. Report regarding Army water craft support facilities and
activities.
Sec. 2896. Residual value reports.
Sec. 2897. Sense of Congress and report regarding Fitzsimons Army
Medical Center, Colorado.

TITLE XXIX--LAND CONVEYANCES INVOLVING JOLIET ARMY AMMUNITION PLANT,
ILLINOIS

Sec. 2901. Short title.
Sec. 2902. Definitions.

Subtitle A--Conversion of Joliet Army Ammunition Plant to Midewin
National Tallgrass Prairie

Sec. 2911. Principles of transfer.
Sec. 2912. Transfer of management responsibilities and jurisdiction
over Arsenal.
Sec. 2913. Responsibility and liability.
Sec. 2914. Establishment and administration of Midewin National
Tallgrass Prairie.
Sec. 2915. Special management requirements for Midewin National
Tallgrass Prairie.
Sec. 2916. Special transfer rules for certain Arsenal parcels intended
for MNP.

Subtitle B--Other Land Conveyances Involving Joliet Army Ammunition
Plant

Sec. 2921. Conveyance of certain real property at Arsenal for a
national cemetery.
Sec. 2922. Conveyance of certain real property at Arsenal for a county
landfill.
Sec. 2923. Conveyance of certain real property at Arsenal for
industrial parks.

Subtitle C--Miscellaneous Provisions

Sec. 2931. Degree of environmental cleanup.
Sec. 2932. Retention of property used for environmental cleanup.

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. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction
activities.
Sec. 3127. Funds available for all national security programs of the
Department of Energy.
Sec. 3128. Availability of funds.

Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Authority to conduct program relating to fissile materials.
Sec. 3132. National Ignition Facility.
Sec. 3133. Tritium production program.
Sec. 3134. Payment of penalties.
Sec. 3135. Fissile materials disposition.
Sec. 3136. Tritium recycling.
Sec. 3137. Manufacturing infrastructure for refabrication and
certification of nuclear weapons stockpile.
Sec. 3138. Hydronuclear experiments.
Sec. 3139. Limitation on authority to conduct hydronuclear tests.
Sec. 3140. Fellowship program for development of skills critical to the
Department of Energy nuclear weapons complex.
Sec. 3141. Limitation on use of funds for certain research and
development purposes.
Sec. 3142. Processing and treatment of high-level nuclear waste and
spent nuclear fuel rods.
Sec. 3143. Protection of workers at nuclear weapons facilities.
Sec. 3144. Department of Energy Declassification Productivity
Initiative.

Subtitle D--Other Matters

Sec. 3151. Report on foreign tritium purchases.
Sec. 3152. Study on nuclear test readiness postures.
Sec. 3153. Master plan for the certification, stewardship, and
management of warheads in the nuclear weapons stockpile.
Sec. 3154. Prohibition on international inspections of Department of
Energy facilities unless protection of restricted data is
certified.
Sec. 3155. Review of certain documents before declassification and
release.
Sec. 3156. Accelerated schedule for environmental restoration and waste
management activities.
Sec. 3157. Sense of Congress regarding certain environmental
restoration requirements.
Sec. 3158. Responsibility for Defense Programs Emergency Response
Program.
Sec. 3159. Requirements for Department of Energy weapons activities
budgets for fiscal years after fiscal year 1996.
Sec. 3160. Report on hydronuclear testing.
Sec. 3161. Applicability of Atomic Energy Community Act of 1955 to Los
Alamos, New Mexico.
Sec. 3162. Sense of Congress regarding shipments of spent nuclear fuel.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Subtitle A--Authorization of Disposals and Use of Funds

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of chromite and manganese ores and chromium ferro
and manganese metal electrolytic.
Sec. 3304. Restrictions on disposal of manganese ferro.
Sec. 3305. Titanium initiative to support battle tank upgrade program.

Subtitle B--Programmatic Change

Sec. 3311. Transfer of excess defense-related materials to stockpile
for disposal.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

Subtitle A--Administration of Naval Petroleum Reserves

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal
year 1996.
Sec. 3403. Extension of operating contract for Naval Petroleum Reserve
Numbered 1.

Subtitle B--Sale of Naval Petroleum Reserve

Sec. 3411. Definitions.
Sec. 3412. Sale of Naval Petroleum Reserve Numbered 1.
Sec. 3413. Effect of sale of reserve.
Sec. 3414. Conditions on sale process.
Sec. 3415. Treatment of State of California claim regarding reserve.
Sec. 3416. Study of future of other naval petroleum reserves.

TITLE XXXV--PANAMA CANAL COMMISSION

Subtitle A--Authorization of Appropriations

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Expenditures in accordance with other laws.

Subtitle B--Reconstitution of Commission as Government Corporation

Sec. 3521. Short title.
Sec. 3522. Reconstitution of Commission as Government corporation.
Sec. 3523. Supervisory Board.
Sec. 3524. General and specific powers of Commission.
Sec. 3525. Congressional review of budget.
Sec. 3526. Audits.
Sec. 3527. Prescription of measurement rules and rates of tolls.

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Sec. 3528. Procedures for changes in rules of measurement and rates of
tolls.
Sec. 3529. Miscellaneous technical amendments.
Sec. 3530. Conforming amendment to title 31, United States Code.

DIVISION D--FEDERAL ACQUISITION REFORM

Sec. 4001. Short title.

TITLE XLI--COMPETITION

Sec. 4101. Efficient competition.
Sec. 4102. Efficient approval procedures.
Sec. 4103. Efficient competitive range determinations.
Sec. 4104. Preaward debriefings.
Sec. 4105. Design-build selection procedures.

TITLE XLII--COMMERCIAL ITEMS

Sec. 4201. Commercial item exception to requirement for cost or pricing
data.
Sec. 4202. Application of simplified procedures to certain commercial
items.
Sec. 4203. Inapplicability of certain procurement laws to commercially
available off-the-shelf items.
Sec. 4204. Amendment of commercial items definition.
Sec. 4205. Inapplicability of cost accounting standards to contracts
and subcontracts for commercial items.

TITLE XLIII--ADDITIONAL REFORM PROVISIONS

Subtitle A--Additional Acquisition Reform Provisions

Sec. 4301. Elimination of certain certification requirements.
Sec. 4302. Authorities conditioned on FACNET capability.
Sec. 4303. International competitiveness.
Sec. 4304. Procurement integrity.
Sec. 4305. Further acquisition streamlining provisions.
Sec. 4306. Value engineering for Federal agencies.
Sec. 4307. Acquisition workforce.
Sec. 4308. Demonstration project relating to certain personnel
management policies and procedures.
Sec. 4309. Cooperative purchasing.
Sec. 4310. Procurement notice technical amendments.
Sec. 4311. Micro-purchases without competitive quotations.

Subtitle B--Technical Amendments

Sec. 4321. Amendments related to Federal Acquisition Streamlining Act
of 1994.
Sec. 4322. Miscellaneous amendments to Federal acquisition laws.

TITLE XLIV--EFFECTIVE DATES AND IMPLEMENTATION

Sec. 4401. Effective date and applicability.
Sec. 4402. Implementing regulations.

DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM

Sec. 5001. Short title.
Sec. 5002. Definitions.

TITLE LI--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

Subtitle A--General Authority

Sec. 5101. Repeal of central authority of the Administrator of General
Services.

Subtitle B--Director of the Office of Management and Budget

Sec. 5111. Responsibility of Director.
Sec. 5112. Capital planning and investment control.
Sec. 5113. Performance-based and results-based management.

Subtitle C--Executive Agencies

Sec. 5121. Responsibilities.
Sec. 5122. Capital planning and investment control.
Sec. 5123. Performance and results-based management.
Sec. 5124. Acquisitions of information technology.
Sec. 5125. Agency Chief Information Officer.
Sec. 5126. Accountability.
Sec. 5127. Significant deviations.
Sec. 5128. Interagency support.

Subtitle D--Other Responsibilities

Sec. 5131. Responsibilities regarding efficiency, security, and privacy
of Federal computer systems.
Sec. 5132. Sense of Congress.

Subtitle E--National Security Systems

Sec. 5141. Applicability to national security systems.
Sec. 5142. National security system defined.

TITLE LII--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

Sec. 5201. Procurement procedures.
Sec. 5202. Incremental acquisition of information technology.

TITLE LIII--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS

Subtitle A--Conduct of Pilot Programs

Sec. 5301. Authority to conduct pilot programs.
Sec. 5302. Evaluation criteria and plans.
Sec. 5303. Report.
Sec. 5304. Recommended legislation.
Sec. 5305. Rule of construction.

Subtitle B--Specific Pilot Programs

Sec. 5311. Share-in-savings pilot program.
Sec. 5312. Solutions-based contracting pilot program.

TITLE LIV--ADDITIONAL INFORMATION RESOURCES MANAGEMENT MATTERS

Sec. 5401. On-line multiple award schedule contracting.
Sec. 5402. Identification of excess and surplus computer equipment.
Sec. 5403. Access of certain information in information systems to the
directory established under section 4101 of title 44,
United States Code.

TITLE LV--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

Sec. 5501. Period for processing protests.
Sec. 5502. Availability of funds following GAO resolution of challenge
to contracting action.

TITLE LVI--CONFORMING AND CLERICAL AMENDMENTS

Sec. 5601. Amendments to title 10, United States Code.
Sec. 5602. Amendments to title 28, United States Code.
Sec. 5603. Amendment to title 31, United States Code.
Sec. 5604. Amendments to title 38, United States Code.
Sec. 5605. Provisions of title 44, United States Code, relating to
paperwork reduction.
Sec. 5606. Amendment to title 49, United States Code.
Sec. 5607. Other laws.
Sec. 5608. Clerical amendments.

TITLE LVII--EFFECTIVE DATE, SAVINGS PROVISIONS, AND RULES OF
CONSTRUCTION

Sec. 5701. Effective date.
Sec. 5702. Savings provisions.
Sec. 5703. Rules of construction.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

For purposes of this Act, the term ``congressional defense
committees'' means--
(1) the Committee on Armed Services and the Committee on
Appropriations of the Senate; and
(2) the Committee on National Security and the Committee on
Appropriations of the House of Representatives.

SEC. 4. EXTENSION OF TIME FOR SUBMISSION OF REPORTS.

In the case of any provision of this Act, or any amendment
made by a provision of this Act, requiring the submission of
a report to Congress (or any committee of Congress), that
report shall be submitted not later than the later of--
(1) the date established for submittal of the report in
such provision or amendment; or
(2) the date that is 45 days after the date of the
enactment of this Act.
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
TITLE I--PROCUREMENT
Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

Funds are hereby authorized to be appropriated for fiscal
year 1996 for procurement for the Army as follows:
(1) For aircraft, $1,558,805,000.
(2) For missiles, $865,555,000.
(3) For weapons and tracked combat vehicles,
$1,652,745,000.
(4) For ammunition, $1,093,991,000.
(5) For other procurement, $2,763,443,000.

SEC. 102. NAVY AND MARINE CORPS.

(a) Navy.--Funds are hereby authorized to be appropriated
for fiscal year 1996 for procurement for the Navy as follows:
(1) For aircraft, $4,572,394,000.
(2) For weapons, including missiles and torpedoes,
$1,659,827,000.
(3) For shipbuilding and conversion, $6,643,958,000.
(4) For other procurement, $2,414,771,000.
(b) Marine Corps.--Funds are hereby authorized to be
appropriated for fiscal year 1996 for procurement for the
Marine Corps in the amount of $458,947,000.
(c) Navy and Marine Corps Ammunition.--Funds are hereby
authorized to be appropriated for procurement of ammunition
for the Navy and the Marine Corps in the amount of
$430,053,000.

SEC. 103. AIR FORCE.

Funds are hereby authorized to be appropriated for fiscal
year 1996 for procurement for the Air Force as follows:
(1) For aircraft, $7,349,783,000.
(2) For missiles, $2,938,883,000.
(3) For ammunition, $343,848,000.
(4) For other procurement, $6,268,430,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

Funds are hereby authorized to be appropriated for fiscal
year 1996 for Defense-wide procurement in the amount of
$2,124,379,000.

SEC. 105. RESERVE COMPONENTS.

Funds are hereby authorized to be appropriated for fiscal
year 1996 for procurement of aircraft, vehicles,
communications equipment, and other equipment for the reserve
components of the Armed Forces as follows:
(1) For the Army National Guard, $160,000,000.
(2) For the Air National Guard, $255,000,000.
(3) For the Army Reserve, $85,700,000.
(4) For the Naval Reserve, $67,000,000.
(5) For the Air Force Reserve, $135,600,000.
(6) For the Marine Corps Reserve, $73,700,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

Funds are hereby authorized to be appropriated for fiscal
year 1996 for procurement for the Inspector General of the
Department of Defense in the amount of $1,000,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

There is hereby authorized to be appropriated for fiscal
year 1996 the amount of $672,250,000 for--
(1) the destruction of lethal chemical agents and munitions
in accordance with

[[Page H359]]
section 1412 of the Department of Defense Authorization Act, 1986 (50
U.S.C. 1521); and
(2) the destruction of chemical warfare materiel of the
United States that is not covered by section 1412 of such
Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

Funds are hereby authorized to be appropriated for fiscal
year 1996 for the Department of Defense for procurement for
carrying out health care programs, projects, and activities
of the Department of Defense in the total amount of
$288,033,000.
Subtitle B--Army Programs

SEC. 111. PROCUREMENT OF OH-58D ARMED KIOWA WARRIOR
HELICOPTERS.

The prohibition in section 133(a)(2) of the National
Defense Authorization Act for Fiscal Years 1990 and 1991
(Public Law 101-189; 103 Stat. 1383) does not apply to the
obligation of funds in amounts not to exceed $140,000,000 for
the procurement of not more than 20 OH-58D Armed Kiowa
Warrior aircraft from funds appropriated for fiscal year 1996
pursuant to section 101.

SEC. 112. REPEAL OF REQUIREMENTS FOR ARMORED VEHICLE
UPGRADES.

Subsection (j) of section 21 of the Arms Export Control Act
(22 U.S.C. 2761) is repealed.

SEC. 113. MULTIYEAR PROCUREMENT OF HELICOPTERS.

The Secretary of the Army may, in accordance with section
2306b of title 10, United States Code, enter into multiyear
procurement contracts for procurement of the following:
(1) AH-64D Longbow Apache attack helicopters.
(2) UH-60 Black Hawk utility helicopters.

SEC. 114. REPORT ON AH-64D ENGINE UPGRADES.

No later than February 1, 1996, the Secretary of the Army
shall submit to Congress a report on plans to procure T700-
701C engine upgrade kits for Army AH-64D helicopters. The
report shall include--
(1) a plan to provide for the upgrade of all Army AH-64D
helicopters with T700-701C engine kits commencing in fiscal
year 1996; and
(2) a detailed timeline and statement of funding
requirements for the engine upgrade program described in
paragraph (1).

SEC. 115. REQUIREMENT FOR USE OF PREVIOUSLY AUTHORIZED
MULTIYEAR PROCUREMENT AUTHORITY FOR ARMY SMALL
ARMS PROCUREMENT.

(a) Requirement.--The Secretary of the Army (subject to the
provision of authority in an appropriations Act) shall enter
into a multiyear procurement contract during fiscal year
1997 in accordance with section 115(b)(2) of the National
Defense Authorization for Fiscal Year 1995 (Public Law
103-337; 108 Stat. 2681).
(b) Technical Amendment.--Section 115(b)(1) of the National
Defense Authorization for Fiscal Year 1995 (Public Law 103-
337; 108 Stat. 2681) is amended by striking out ``2306(h)''
and inserting in lieu thereof ``2306b''.
Subtitle C--Navy Programs

SEC. 131. NUCLEAR ATTACK SUBMARINES.

(a) Amounts Authorized.--(1) Of the amount authorized by
section 102 to be appropriated for Shipbuilding and
Conversion, Navy, for fiscal year 1996--
(A) $700,000,000 is available for construction of the third
vessel (designated SSN-23) in the Seawolf attack submarine
class, which shall be the final vessel in that class; and
(B) $804,498,000 is available for long-lead and advance
construction and procurement of components for construction
of the fiscal year 1998 and fiscal year 1999 submarines
(previously designated by the Navy as the New Attack
Submarine), of which--
(i) $704,498,000 shall be available for long-lead and
advance construction and procurement for the fiscal year 1998
submarine, which shall be built by Electric Boat Division;
and
(ii) $100,000,000 shall be available for long-lead and
advance construction and procurement for the fiscal year 1999
submarine, which shall be built by Newport News Shipbuilding.
(2) Of the amount authorized by section 201(2), $10,000,000
shall be available only for participation of Newport News
Shipbuilding in the design of the submarine previously
designated by the Navy as the New Attack Submarine.
(b) Competition, Report, and Budget Revision Limitations.--
(1) Of the amounts specified in subsection (a)(1), not more
than $200,000,000 may be obligated or expended until the
Secretary of the Navy certifies in writing to the Committee
on Armed Services of the Senate and the Committee on National
Security of the House of Representatives that procurement of
nuclear attack submarines to be constructed beginning--
(A) after fiscal year 1999, or
(B) if four submarines are procured as provided for in the
plan described in subsection (c), after fiscal year 2001,
will be under one or more contracts that are entered into
after competition between potential competitors (as defined
in subsection (k)) in which the Secretary solicits
competitive proposals and awards the contract or contracts on
the basis of price.
(2) Of the amounts specified in subsection (a)(1), not more
than $1,000,000,000 may be obligated or expended until the
Secretary of Defense, not later than March 15, 1996,
accomplishes each of the following:
(A) Submits to the Committee on Armed Services of the
Senate and the Committee on National Security of the House of
Representatives in accordance with subsection (c) the plan
required by that subsection for a program to produce a more
capable, less expensive nuclear attack submarine than the
submarine design previously designated by the Navy as the New
Attack Submarine.
(B) Notwithstanding any other provision of law, or the
funding level in the President's budget for each year after
fiscal year 1996, the Under Secretary of Defense
(Comptroller) shall incorporate the costs of the plan
required by subsection (c) in the Future Years Defense
Program (FYDP) even if the total cost of that Program exceeds
the President's budget.
(C) Directs that the Under Secretary of Defense for
Acquisition and Technology conduct oversight over the
development and improvement of the nuclear attack submarine
program of the Navy. Officials of the Department of the Navy
exercising management oversight of the program shall report
to the Under Secretary of Defense for Acquisition and
Technology with respect to that program.
(c) Plan for Fiscal Year 1998, 1999, 2000, and 2001
Submarines.--(1) The Secretary of Defense shall, not later
than March 15, 1996, develop (and submit to the committees
specified in subsection (b)(2)(A)) a detailed plan for
development of a program that will lead to production of a
more capable, less expensive submarine than the submarine
previously designated as the New Attack Submarine.
(2) As part of such plan, the Secretary shall provide for a
program for the design, development, and procurement of four
nuclear attack submarines to be procured during fiscal years
1998 through 2001, the purpose of which shall be to develop
and demonstrate new technologies that will result in each
successive submarine of those four being a more capable and
more affordable submarine than the submarine that preceded
it. The program shall be structured so that--
(A) one of the four submarines is to be constructed with
funds appropriated for each fiscal year from fiscal year 1998
through fiscal year 2001;
(B) in order to ensure flexibility for innovation, the
fiscal year 1998 and the fiscal year 2000 submarines are to
be constructed by the Electric Boat Division and the fiscal
year 1999 and the fiscal year 2001 submarines are to be
constructed by Newport News Shipbuilding;
(C) the design designated by the Navy for the submarine
previously designated as the New Attack Submarine will be
used as the base design by both contractors;
(D) each contractor shall be called upon to propose
improvements, including design improvements, for each
successive submarine as new and better technology is
demonstrated and matures so that--
(i) each successive submarine is more capable and more
affordable; and
(ii) the design for a future class of nuclear attack
submarines will incorporate the latest, best, and most
affordable technology; and
(E) the fifth and subsequent nuclear attack submarines to
be built after the SSN-23 submarine shall be procured as
required by subsection (b)(1).
(3) The plan under paragraph (1) shall--
(A) set forth a program to accomplish the design,
development, and construction of the four submarines taking
maximum advantage of a streamlined acquisition process, as
provided under subsection (d);
(B) culminate in selection of a design for a next submarine
for serial production not earlier than fiscal year 2003, with
such submarine to be procured as required by subsection
(b)(1);
(C) identify advanced technologies that are in various
phases of research and development, as well as those that are
commercially available off-the-shelf, that are candidates to
be incorporated into the plan to design, develop, and procure
the submarines;
(D) designate the fifth submarine to be procured as the
lead ship in the next generation submarine class, unless the
Secretary of the Navy, in consultation with the special
submarine review panel described in subsection (f),
determines that more submarines should be built before the
design of the new class of submarines is fixed, in which case
each such additional submarine shall be procured in the same
manner as is required by subsection (b)(1); and
(E) identify the impact of the submarine program described
in paragraph (1) on the remainder of the appropriation
account known as ``Shipbuilding and Conversion, Navy'', as
such impact relates to--
(i) force structure levels required by the October 1993
Department of Defense report entitled ``Report on the Bottom-
Up Review'';
(ii) force structure levels required by the 1995 report on
the Surface Ship Combatant Study that was carried out for the
Department of Defense; and
(iii) the funding requirements for submarine construction,
as a percentage of the total ship construction account, for
each fiscal year throughout the FYDP.
(4) As part of such plan, the Secretary shall provide--
(A) cost estimates and schedules for developing new
technologies that may be used to make submarines more capable
and more affordable; and
(B) an analysis of significant risks associated with
fielding the new technologies on the schedule proposed by the
Secretary and significant increased risks that are likely to
be incurred by accelerating that schedule.
(d) Streamlined Acquisition Process.--The Secretary of
Defense shall prescribe and

[[Page H360]]
use streamlined acquisition policies and procedures to reduce the cost
and increase the efficiency of the submarine program under
this section.
(e) Annual Revisions to Plan.--The Secretary shall submit
to the Committee on Armed Services of the Senate and the
Committee on National Security of the House of
Representatives an annual update to the plan required to be
submitted under subsection (b). Each such update shall be
submitted concurrent with the President's budget submission
to Congress for each of fiscal years 1998 through 2002.
(f) Special Submarine Review Panel.--(1) The plan under
subsection (c) and each annual update under subsection (e)
shall be reviewed by a special bipartisan congressional panel
working with the Navy. The panel shall consist of three
members of the Committee on Armed Services of the Senate, who
shall be designated by the chairman of that committee, and
three members of the Committee on National Security of the
House of Representatives, who shall be designated by the
chairman of that committee. The members of the panel shall be
briefed by the Secretary of the Navy on the status of the
submarine modernization program and the status of submarine-
related research and development under this section.
(2) Not later than May 1 of each year, the panel shall
report to the Committee on Armed Services of the Senate and
the Committee on National Security of the House of
Representatives on the panel's findings and recommendations
regarding the progress of the Secretary in procuring a more
capable, less expensive submarine. The panel may recommend
any funding adjustments it believes appropriate to achieve
this objective.
(g) Linkage of Fiscal Year 1998 and 1999 Submarines.--Funds
referred to in subsection (a)(1)(B) that are available for
the fiscal year 1998 and fiscal year 1999 submarines under
this section may not be expended during fiscal year 1996 for
the fiscal year 1998 submarine (other than for design) unless
funds are obligated or expended during such fiscal year for a
contract in support of procurement of the fiscal year 1999
submarine.
(h) Contracts Authorized.--The Secretary of the Navy is
authorized, using funds available pursuant to paragraph
(1)(B) of subsection (a), to enter into contracts with
Electric Boat Division and Newport News Shipbuilding, and
suppliers of components, during fiscal year 1996 for--
(1) the procurement of long-lead components for the fiscal
year 1998 submarine and the fiscal year 1999 submarine under
this section; and
(2) advance construction of such components and other
components for such submarines.
(i) Advanced Research Projects Agency Development of
Advanced Technologies.--(1) Of the amount provided in section
201(4) for the Advanced Research Projects Agency,
$100,000,000 is available only for development and
demonstration of advanced technologies for incorporation into
the submarines constructed as part of the plan developed
under subsection (c). Such advanced technologies shall
include the following:
(A) Electric drive.
(B) Hydrodynamic quieting.
(C) Ship control automation.
(D) Solid-state power electronics.
(E) Wake reduction technologies.
(F) Superconductor technologies.
(G) Torpedo defense technologies.
(H) Advanced control concept.
(I) Fuel cell technologies.
(J) Propulsors.
(2) The Director of the Advanced Research Projects Agency
shall implement a rapid prototype acquisition strategy for
both land-based and at-sea subsystem and system
demonstrations of advanced technologies under paragraph (1).
Such acquisition strategy shall be developed and implemented
in concert with Electric Boat Division and Newport News
Shipbuilding and the Navy.
(j) References to Contractors.--For purposes of this
section--
(1) the contractor referred to as ``Electric Boat
Division'' is the Electric Boat Division of the General
Dynamics Corporation; and
(2) the contractor referred to as ``Newport News
Shipbuilding'' is the Newport News Shipbuilding and Drydock
Company.
(k) Potential Competitor Defined.--For purposes of this
section, the term ``potential competitor'' means any source
to which the Secretary of the Navy has awarded, within 10
years before the date of the enactment of this Act, a
contract or contracts to construct one or more nuclear attack
submarines.

SEC. 132. RESEARCH FOR ADVANCED SUBMARINE TECHNOLOGY.

Of the amount appropriated for fiscal year 1996 for the
National Defense Sealift Fund, $50,000,000 shall be available
only for the Director of the Advanced Research Projects
Agency for advanced submarine technology activities.

SEC. 133. COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

(a) Limitation of Costs.--Except as provided in subsection
(b), the total amount obligated or expended for procurement
of the SSN-21, SSN-22, and SSN-23 Seawolf class submarines
may not exceed $7,223,659,000.
(b) Automatic Increase of Limitation Amount.--The amount of
the limitation set forth in subsection (a) is increased by
the following amounts:
(1) The amounts of outfitting costs and post-delivery costs
incurred for the submarines referred to in such subsection.
(2) The amounts of increases in costs attributable to
economic inflation after September 30, 1995.
(3) The amounts of increases in costs attributable to
compliance with changes in Federal, State, or local laws
enacted after September 30, 1995.
(c) Repeal of Superseded Provision.--Section 122 of the
National Defense Authorization Act for Fiscal Year 1995
(Public Law 103-337; 108 Stat. 2682) is repealed.

SEC. 134. REPEAL OF PROHIBITION ON BACKFIT OF TRIDENT
SUBMARINES.

Section 124 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2683) is
repealed.

SEC. 135. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

(a) Authorization for Procurement of Six Vessels.--The
Secretary of the Navy is authorized to construct six Arleigh
Burke class destroyers in accordance with this section.
Within the amount authorized to be appropriated pursuant to
section 102(a)(3), $2,169,257,000 is authorized to be
appropriated for construction (including advance procurement)
for the Arleigh Burke class destroyers.
(b) Contracts.--(1) The Secretary is authorized to enter
into contracts in fiscal year 1996 for the construction of
three Arleigh Burke class destroyers.
(2) The Secretary is authorized, in fiscal year 1997, to
enter into contracts for the construction of the other three
Arleigh Burke class destroyers covered by subsection (a),
subject to the availability of appropriations for such
destroyers.
(3) In awarding contracts for the six vessels covered by
subsection (a), the Secretary shall continue the contract
award pattern and sequence used by the Secretary for the
procurement of Arleigh Burke class destroyers during fiscal
years 1994 and 1995.
(4) A contract for construction of a vessel or vessels that
is entered into in accordance with paragraph (1) shall
include a clause that limits the liability of the Government
to the contractor for any termination of the contract. The
maximum liability of the Government under the clause shall be
the amount appropriated for the vessel or vessels.
(c) Use of Available Funds.--(1) Subject to paragraph (2),
the Secretary may take appropriate actions to use for full
funding of a contract entered into in accordance with
subsection (b)--
(A) any funds that, having been appropriated for
shipbuilding and conversion programs of the Navy other than
Arleigh Burke class destroyer programs pursuant to the
authorization in section 102(a)(3), become excess to the
needs of the Navy for such programs by reason of cost savings
achieved for such programs;
(B) any unobligated funds that are available to the
Secretary for shipbuilding and conversion for any fiscal year
before fiscal year 1996; and
(C) any funds that are appropriated after the date of the
enactment of the Department of Defense Appropriations Act,
1996, to complete the full funding of the contract.
(2) The Secretary may not, in the exercise of authority
provided in subparagraph (A) or (B) of paragraph (1),
obligate funds for a contract entered into in accordance with
subsection (b) until 30 days after the date on which the
Secretary submits to the congressional defense committees in
writing a notification of the intent to obligate the funds.
The notification shall set forth the source or sources of the
funds and the amount of the funds from each such source that
is to be so obligated.

SEC. 136. ACQUISITION PROGRAM FOR CRASH ATTENUATING SEATS.

(a) Program Authorized.--The Secretary of the Navy shall
establish a program to procure for, and install in, H-53E
military transport helicopters commercially developed, energy
absorbing, crash attenuating seats that the Secretary
determines are consistent with military specifications for
seats for such helicopters.
(b) Funding.--To the extent provided in appropriations
Acts, of the unobligated balance of amounts appropriated for
the Legacy Resource Management Program pursuant to the
authorization of appropriations in section 301(5) of the
National Defense Authorization Act for Fiscal Year 1995
(Public Law 103-337; 108 Stat. 2706), not more than
$10,000,000 shall be available to the Secretary of the Navy,
by transfer to the appropriate accounts, for carrying out the
program authorized in subsection (a).

SEC. 137. T-39N TRAINER AIRCRAFT.

(a) Limitation.--The Secretary of the Navy may not enter
into a contract, using funds appropriated for fiscal year
1996 for procurement of aircraft for the Navy, for the
acquisition of the aircraft described in subsection (b) until
60 days after the date on which the Under Secretary of
Defense for Acquisition and Technology submits to the
Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives--
(1) an analysis of the proposed acquisition of such
aircraft; and
(2) a certification that the proposed acquisition during
fiscal year 1996 (A) is in the best interest of the
Government, and (B) is the most cost effective means of
meeting the requirements of the Navy for aircraft for use in
the training of naval flight officers.
(b) Covered Aircraft.--Subsection (a) applies to certain T-
39 trainer aircraft that as of November 1, 1995 (1) are used
by the Navy under a lease arrangement for the training of

[[Page H361]]
naval flight officers, and (2) are offered for sale to the Government.

SEC. 138. PIONEER UNMANNED AERIAL VEHICLE PROGRAM.

Not more than one-sixth of the amount appropriated pursuant
to this Act for the activities and operations of the Unmanned
Aerial Vehicle Joint Program Office (UAV-JPO), and none of
the unobligated balances of funds appropriated for fiscal
years before fiscal year 1996 for the activities and
operations of such office, may be obligated until the
Secretary of the Navy certifies to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives that funds have been
obligated to equip nine Pioneer Unmanned Aerial Vehicle
systems with the Common Automatic Landing and Recovery
System (CARS).
Subtitle D--Air Force Programs

SEC. 141. B-2 AIRCRAFT PROGRAM.

(a) Repeal of Limitations.--The following provisions of law
are repealed:
(1) Section 151(c) of the National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat.
2339).
(2) Sections 131(c) and 131(d) of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 103-160;
107 Stat. 1569).
(3) Section 133(e) of the National Defense Authorization
Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat.
2688).
(b) Conversion of Limitation to Annual Report
Requirement.--Section 112 of the National Defense
Authorization Act for Fiscal Years 1990 and 1991 (Public Law
101-189; 103 Stat. 1373) is amended--
(1) by striking out subsection (a);
(2) by striking out the matter in subsection (b) preceding
paragraph (1) and inserting in lieu thereof the following:
``(a) Annual Reporting Requirement.--Not later than March 1
of each year, the Secretary of Defense shall submit to the
Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives a report
that sets forth the finding of the Secretary (as of January 1
of such year) on each of the following matters:'';
(3) by striking out ``That'' in paragraphs (1), (2), (3),
(4), and (5) and inserting in lieu thereof ``Whether'';
(4) in paragraph (1), by striking out ``latest'' and all
that follows through ``100-180'' and inserting in lieu
thereof ``Requirements Correlation Matrix found in the user-
defined Operational Requirements Document (as contained in
Attachment B to a letter from the Secretary of Defense to
Congress dated October 14, 1993)'';
(5) in paragraph (3), by striking out ``congressional
defense'';
(6) in paragraph (4), by striking out ``such certification
to be submitted'';
(7) by adding at the end the following:
``(b) First Report.--The Secretary shall submit the first
annual report under subsection (a) not later than March 1,
1996.''; and
(8) by amending the section heading to read as follows:

``SEC. 112. ANNUAL REPORT ON B-2 BOMBER AIRCRAFT PROGRAM.''.

(c) Repeal of Condition on Obligation of Funds in Enhanced
Bomber Capability Fund.--Section 133(d)(3) of the National
Defense Authorization Act for Fiscal Year 1995 (Public Law
103-337; 108 Stat. 2688) is amended by striking out ``If,''
and all that follows through ``bombers, the Secretary'' and
inserting in lieu thereof ``The Secretary''.

SEC. 142. PROCUREMENT OF B-2 BOMBERS.

Of the amount authorized to be appropriated by section 103
for the B-2 bomber procurement program, not more than
$279,921,000 may be obligated or expended before March 31,
1996.

SEC. 143. MC-130H AIRCRAFT PROGRAM.

The limitation on the obligation of funds for payment of an
award fee and the procurement of contractor-furnished
equipment for the MC-130H Combat Talon aircraft set forth in
section 161(a) of the National Defense Authorization Act for
Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat.
1388) shall cease to apply upon determination by the Director
of Operational Test and Evaluation (and submission of a
certification of that determination to the congressional
defense committees) that, based on the operational test and
evaluation and the analysis conducted on that aircraft to the
date of that determination, such aircraft is operationally
effective and meets the needs of its intended users.
Subtitle E--Chemical Demilitarization Program

SEC. 151. REPEAL OF REQUIREMENT TO PROCEED EXPEDITIOUSLY WITH
DEVELOPMENT OF CHEMICAL DEMILITARIZATION
CRYOFRACTURE FACILITY AT TOOELE ARMY DEPOT,
UTAH.

Subsection (a) of section 173 of the National Defense
Authorization Act for Fiscal Years 1990 and 1991 (Public Law
101-189; 103 Stat. 1393) is repealed.

SEC. 152. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL
CHEMICAL AGENTS AND MUNITIONS.

(a) In General.--The Secretary of Defense shall proceed
with the program for destruction of the chemical munitions
stockpile of the Department of Defense while maintaining the
maximum protection of the environment, the general public,
and the personnel involved in the actual destruction of the
munitions. In carrying out such program, the Secretary shall
use technologies and procedures that will minimize the risk
to the public at each site.
(b) Initiation of Demilitarization Operations.--The
Secretary of Defense may not initiate destruction of the
chemical munitions stockpile stored at a site until the
following support measures are in place:
(1) Support measures that are required by Department of
Defense and Army chemical surety and security program
regulations.
(2) Support measures that are required by the general and
site chemical munitions demilitarization plans specific to
that installation.
(3) Support measures that are required by the permits
required by the Solid Waste Disposal Act (42 U.S.C. 6901 et
seq.) and the Clean Air Act (42 U.S.C. 7401 et seq.) for
chemical munitions demilitarization operations at
that installation, as approved by the appropriate State
regulatory agencies.
(c) Assessment of Alternatives.--(1) The Secretary of
Defense shall conduct an assessment of the current chemical
demilitarization program and of measures that could be taken
to reduce significantly the total cost of the program, while
ensuring maximum protection of the general public, the
personnel involved in the demilitarization program, and the
environment. The measures considered shall be limited to
those that would minimize the risk to the public. The
assessment shall be conducted without regard to any
limitation that would otherwise apply to the conduct of such
an assessment under any provision of law.
(2) The assessment shall be conducted in coordination with
the National Research Council.
(3) Based on the results of the assessment, the Secretary
shall develop appropriate recommendations for revision of the
chemical demilitarization program.
(4) Not later than March 1, 1996, the Secretary of Defense
shall submit to the congressional defense committees an
interim report assessing the current status of the chemical
stockpile demilitarization program, including the results of
the Army's analysis of the physical and chemical integrity of
the stockpile and implications for the chemical
demilitarization program, and providing recommendations for
revisions to that program that have been included in the
budget request of the Department of Defense for fiscal year
1997. The Secretary shall submit to the congressional defense
committees with the submission of the budget request of the
Department of Defense for fiscal year 1998 a final report on
the assessment conducted in accordance with paragraph (1) and
recommendations for revision to the program, including an
assessment of alternative demilitarization technologies and
processes to the baseline incineration process and potential
reconfiguration of the stockpile that should be incorporated
in the program.
(d) Assistance for Chemical Weapons Stockpile Communities
Affected by Base Closure.--(1) The Secretary of Defense shall
review and evaluate issues associated with closure and
reutilization of Department of Defense facilities co-located
with continuing chemical stockpile and chemical
demilitarization operations.
(2) The review shall include the following:
(A) An analysis of the economic impacts on these
communities and the unique reuse problems facing local
communities associated with ongoing chemical weapons
programs.
(B) Recommendations of the Secretary on methods for
expeditious and cost-effective transfer or lease of these
facilities to local communities for reuse by those
communities.
(3) The Secretary shall submit to the congressional defense
committees a report on the review and evaluation under this
subsection. The report shall be submitted not later than 90
days after the date of the enactment of this Act.

SEC. 153. ADMINISTRATION OF CHEMICAL DEMILITARIZATION
PROGRAM.

(a) Travel Funding for Members of Chemical Demilitarization
Citizens' Advisory Commissions.--Section 172(g) of Public Law
102-484 (50 U.S.C. 1521 note) is amended to read as follows:
``(g) Pay and Expenses.--Members of each commission shall
receive no pay for their involvement in the activities of
their commissions. Funds appropriated for the Chemical
Stockpile Demilitarization Program may be used for travel and
associated travel costs for Citizens' Advisory Commissioners,
when such travel is conducted at the invitation of the
Assistant Secretary of the Army (Research, Development, and
Acquisition).''.
(b) Quarterly Report Concerning Travel Funding for
Citizens' Advisory Commissioners.--Section 1412(g) of the
Department of Defense Authorization Act, 1986 (50 U.S.C.
1521(g)), is amended--
(1) by striking out ``(g) Annual Report.--'' and inserting
in lieu thereof ``(g) Periodic Reports.--'';
(2) in paragraph (2)--
(A) by striking out ``Each such report shall con- tain--''
and inserting in lieu thereof ``Each annual report shall
contain--''
(B) in subparagraph (B)--
(i) by striking out ``and'' at the end of clause (iv);
(ii) by striking out the period at the end of clause (v)
and inserting in lieu thereof ``; and''; and
(iii) by adding at the end the following:
``(vi) travel and associated travel costs for Citizens'
Advisory Commissioners under section 172(g) of Public Law
102-484 (50 U.S.C. 1521 note).'';
(3) by redesignating paragraph (3) as paragraph (4);

[[Page H362]]

(4) by inserting after paragraph (2) the following new
paragraph (3):
``(3) The Secretary shall transmit to the Committee on
Armed Services and the Committee on Appropriations of the
Senate and the Committee on National Security and the
Committee on Appropriations of the House of Representatives a
quarterly report containing an accounting of all funds
expended (during the quarter covered by the report) for
travel and associated travel costs for Citizens' Advisory
Commissioners under section 172(g) of Public Law 102-484 (50
U.S.C. 1521 note). The quarterly report for the final quarter
of the period covered by a report under paragraph (1) may be
included in that report.''; and
(5) in paragraph (4), as redesignated by paragraph (3)--
(A) by striking out ``this subsection'' and inserting in
lieu thereof ``paragraph (1)''; and
(B) by adding at the end the following: ``No quarterly
report is required under paragraph (3) after the transmittal
of the final report under paragraph (1).''.
(c) Director of Program.--Section 1412(e)(3) of the
Department of Defense Authorization Act, 1986 (50 U.S.C.
1521(e)(3)), is amended by inserting ``or civilian
equivalent'' after ``general officer''.
TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION
Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated for fiscal
year 1996 for the use of the Department of Defense for
research, development, test, and evaluation as follows:
(1) For the Army, $4,737,581,000.
(2) For the Navy, $8,474,783,000.
(3) For the Air Force, $12,914,868,000.
(4) For Defense-wide activities, $9,693,180,000, of which--
(A) $251,082,000 is authorized for the activities of the
Director, Test and Evaluation; and
(B) $22,587,000 is authorized for the Director of
Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC RESEARCH AND EXPLORATORY
DEVELOPMENT.

(a) Fiscal Year 1996.--Of the amounts authorized to be
appropriated by section 201, $4,088,879,000 shall be
available for basic research and exploratory development
projects.
(b) Basic Research and Exploratory Development Defined.--
For purposes of this section, the term ``basic research and
exploratory development'' means work funded in program
elements for defense research and development under
Department of Defense category 6.1 or 6.2.

SEC. 203. MODIFICATIONS TO STRATEGIC ENVIRONMENTAL RESEARCH
AND DEVELOPMENT PROGRAM.

(a) Council Membership.--Section 2902(b) of title 10,
United States Code, is amended--
(1) by striking out ``thirteen'' and inserting in lieu
thereof ``12'';
(2) by striking out paragraph (3);
(3) by redesignating paragraphs (4), (5), (6), (7), (8),
(9), and (10) as paragraphs (3), (4), (5), (6), (7), (8), and
(9), respectively; and
(4) in paragraph (8), as redesignated, by striking out ``,
who shall be nonvoting members''.
(b) Annual Report.--(1) Section 2902 of such title is
amended in subsection (d)--
(A) by striking out paragraph (3) and inserting in lieu
thereof the following:
``(3) To prepare an annual report that contains the
following:
``(A) A description of activities of the strategic
environmental research and development program carried out
during the fiscal year before the fiscal year in which the
report is prepared.
``(B) A general outline of the activities planned for the
program during the fiscal year in which the report is
prepared.
``(C) A summary of projects continued from the fiscal year
before the fiscal year in which the report is prepared and
projects expected to be started during the fiscal year in
which the report is prepared and during the following fiscal
year.''; and
(B) in paragraph (4), by striking out ``Federal
Coordinating Council on Science, Engineering, and
Technology'' and inserting in lieu thereof ``National Science
and Technology Council''.
(2) Section 2902 of such title is further amended--
(A) by striking out subsections (f) and (h);
(B) by redesignating subsection (g) as subsection (f); and
(C) by adding at the end the following new subsection:
``(g)(1) Not later than February 1 of each year, the
Council shall submit to the Secretary of Defense the annual
report prepared pursuant to subsection (d)(3).
``(2) Not later than March 15 of each year, the Secretary
of Defense shall submit such annual report to Congress, along
with such comments as the Secretary considers appropriate.''.
(3) The amendments made by this subsection shall apply with
respect to the annual report prepared during fiscal year 1997
and each fiscal year thereafter.
(c) Policies and Procedures.--Section 2902(e) of such title
is amended in paragraph (3) by striking out ``programs,
particularly'' and all that follows through the end of the
paragraph and inserting in lieu thereof ``programs;''.
(d) Competitive Procedures.--Section 2903(c) of such title
is amended--
(1) by striking out ``or'' after ``contracts'' and
inserting in lieu thereof ``using competitive procedures. The
Executive Director may enter into''; and
(2) by striking out ``law, except that'' and inserting in
lieu thereof ``law. In either case,''.
(e) Continuation of Expiring Authority.--(1) Section
2903(d) of such title is amended in paragraph (2) by striking
out the last sentence.
(2) The amendment made by paragraph (1) shall take effect
as of September 29, 1995.

SEC. 204. DEFENSE DUAL USE TECHNOLOGY INITIATIVE.

(a) Fiscal Year 1996 Amount.--Of the amount authorized to
be appropriated in section 201(4), $195,000,000 shall be
available for the defense dual use technology initiative
conducted under chapter 148 of title 10, United States Code.
(b) Availability of Funds for Existing Technology
Reinvestment Projects.--The Secretary of Defense shall use
amounts made available for the defense dual use technology
initiative under subsection (a) only for the purpose of
continuing or completing technology reinvestment projects
that were initiated before October 1, 1995.
(c) Notice Concerning Projects To Be Carried Out.--Of the
amounts made available for the defense dual use technology
initiative under subsection (a)--
(1) $145,000,000 shall be available for obligation only
after the date on which the Secretary of Defense notifies the
congressional defense committees regarding the defense
reinvestment projects to be funded using such funds; and
(2) the remaining $50,000,000 shall be available for
obligation only after the date on which the Secretary of
Defense certifies to the congressional defense committees
that the defense reinvestment projects to be funded using
such funds have been determined by the Joint Requirements
Oversight Council to be of significant military priority.
Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

(a) Allocation of Funds.--Of the amount authorized to be
appropriated pursuant to the authorization in section 201(3),
$50,000,000 shall be available for a competitive reusable
rocket technology program.
(b) Limitation.--Funds made available pursuant to
subsection (a)(1) may be obligated only to the extent that
the fiscal year 1996 current operating plan of the National
Aeronautics and Space Administration allocates at least an
equal amount for its Reusable Space Launch program.

SEC. 212. TACTICAL MANNED RECONNAISSANCE.

(a) Limitation.--None of the amounts appropriated or
otherwise made available pursuant to an authorization in this
Act may be used by the Secretary of the Air Force to conduct
research, development, test, or evaluation for a replacement
aircraft, pod, or sensor payload for the tactical manned
reconnaissance mission until the report required by
subsection (b) is submitted to the congressional defense
committees.
(b) Report.--The Secretary of the Air Force shall submit to
the congressional defense committees a report setting forth
in detail information about the manner in which the funds
authorized by section 201 of this Act and section 201 of the
National Defense Authorization Act for Fiscal Year 1995
(Public Law 103-337; 108 Stat. 2690) are planned to be used
during fiscal year 1996 for research, development, test, and
evaluation for the Air Force tactical manned reconnaissance
mission. At a minimum, the report shall include the sources,
by program element, of the funds and the purposes for which
the funds are planned to be used.

SEC. 213. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM.

(a) Allocation of Funds.--Of the amounts authorized to be
appropriated pursuant to the authorizations in section 201,
$200,156,000 shall be available for the Joint Advanced Strike
Technology (JAST) program. Of that amount--
(1) $83,795,000 shall be available for program element
63800N in the budget of the Department of Defense for fiscal
year 1996;
(2) $85,686,000 shall be available for program element
63800F in such budget; and
(3) $30,675,000 shall be available for program element
63800E in such budget.
(b) Additional Allocation.--Of the amounts made available
under paragraphs (1), (2), and (3) of subsection (a)--
(1) $25,000,000 shall be available from the amount
authorized to be appropriated pursuant to the authorization
in section 201(2) for the conduct, during fiscal year 1996,
of a 6-month program definition phase for the A/F117X, an F-
117 fighter aircraft modified for use by the Navy as a long-
range, medium attack aircraft; and
(2) $7,000,000 shall be available to provide for
competitive engine concepts.
(c) Limitation.--Not more than 75 percent of the amount
appropriated for the Joint Advanced Strike Technology program
pursuant to the authorizations in section 201 may be
obligated until a period of 30 days has expired after the
report required by subsection (d) is submitted to the
congressional defense committees.
(d) Report.--The Secretary of Defense shall submit to the
congressional defense committees a report, in unclassified
and classified forms, not later than March 1, 1996, that sets
forth in detail the following information for the period 1997
through 2005:
(1) The total joint requirement, assuming the capability to
successfully conduct two nearly simultaneous major regional
contingencies, for the following:

[[Page H363]]

(A) Numbers of bombers, tactical combat aircraft, and
attack helicopters and the characteristics required of those
aircraft in terms of capabilities, range, and low-
observability.
(B) Surface- and air-launched standoff precision guided
munitions.
(C) Cruise missiles.
(D) Ground-based systems, such as the Extended Range-
Multiple Launch Rocket System and the Army Tactical Missile
System (ATACMS), for joint warfighting capability.
(2) The warning time assumptions for two nearly
simultaneous major regional contingencies, and the effects on
future tactical attack/fighter aircraft requirements using
other warning time assumptions.
(3) The requirements that exist for the Joint Advanced
Strike Technology program that cannot be met by existing
aircraft or by those in development.

SEC. 214. DEVELOPMENT OF LASER PROGRAM.

Of the amount authorized to be appropriated by section
201(2), $9,000,000 shall be used for the development by the
Naval High Energy Laser Office of a continuous wave,
superconducting radio frequency free electron laser program.

SEC. 215. NAVY MINE COUNTERMEASURES PROGRAM.

Section 216(a) of the National Defense Authorization Act
for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat.
1317) is amended--
(1) by striking out ``Director, Defense Research and
Engineering'' and inserting in lieu thereof ``Under Secretary
of Defense for Acquisition and Technology''; and
(2) by striking out ``fiscal years 1995 through 1999'' and
inserting in lieu thereof ``fiscal years 1996 through 1999''.

SEC. 216. SPACE-BASED INFRARED SYSTEM.

(a) Program Baseline.--The Secretary of Defense shall
establish a program baseline for the Space-Based Infrared
System. Such baseline shall--
(1) include--
(A) program cost and an estimate of the funds required for
development and acquisition activities for each fiscal year
in which such activities are planned to be carried out;
(B) a comprehensive schedule with program milestones and
exit criteria; and
(C) optimized performance parameters for each segment of an
integrated space-based infrared system;
(2) be structured to achieve initial operational capability
of the low earth orbit space segment (the Space and Missile
Tracking System) in fiscal year 2003, with a first launch of
Block I satellites in fiscal year 2002;
(3) ensure integration of the Space and Missile Tracking
System into the architecture of the Space-Based Infrared
System; and
(4) ensure that the performance parameters of all space
segment components are selected so as to optimize the
performance of the Space-Based Infrared System while
minimizing unnecessary redundancy and cost.
(b) Report on Program Baseline.--Not later than 60 days
after the date of the enactment of this Act, the Secretary of
Defense shall submit to the congressional defense committees
a report, in classified and unclassified forms as necessary,
on the program baseline established under subsection (a).
(c) Establishment of Program Elements.--In the budget
justification materials submitted to Congress in support of
the Department of Defense budget for any fiscal year after
fiscal year 1996 (as submitted in the budget of the President
under section 1105(a) of title 31, United States Code), the
amount requested for the Space-Based Infrared System shall be
set forth in accordance with the following program elements:
(1) Space Segment High.
(2) Space Segment Low (Space and Missile Tracking System).
(3) Ground Segment.
(d) Funding for Fiscal Year 1996.--Of the amounts
authorized to be appropriated pursuant to section 201(3) for
fiscal year 1996, or otherwise made available to the
Department of Defense for fiscal year 1996, the following
amounts shall be available for the Space-Based Infrared
System:
(1) $265,744,000 for demonstration and validation, of which
$249,824,000 shall be available for the Space and Missile
Tracking System.
(2) $162,219,000 for engineering and manufacturing
development, of which $9,400,000 shall be available for the
Miniature Sensor Technology Integration program.

SEC. 217. DEFENSE NUCLEAR AGENCY PROGRAMS.

(a) Agency Funding.--Of the amounts authorized to be
appropriated to the Department of Defense in section 201,
$241,703,000 shall be available for the Defense Nuclear
Agency.
(b) Tunnel Characterization and Neutralization Program.--Of
the amount made available under subsection (a), $3,000,000
shall be available for a tunnel characterization and
neutralization program to be managed by the Defense Nuclear
Agency as part of the counterproliferation activities of the
Department of Defense.
(c) Long-Term Radiation Tolerant Microelectronics
Program.--(1) Of the amount made available under subsection
(a), $6,000,000 shall be available for the establishment of a
long-term radiation tolerant microelectronics program to be
managed by the Defense Nuclear Agency for the purposes of--
(A) providing for the development of affordable and
effective hardening technologies and for incorporation of
such technologies into systems;
(B) sustaining the supporting industrial base; and
(C) ensuring that a use of a nuclear weapon in regional
threat scenarios does not interrupt or defeat the continued
operability of systems of the Armed Forces exposed to the
combined effects of radiation emitted by the weapon.
(2) Not later than 120 days after the date of the enactment
of this Act, the Secretary of Defense shall submit to
Congress a report on how the long-term radiation tolerant
microelectronics program is to be conducted and funded in the
fiscal years after fiscal year 1996 that are covered by the
future-years defense program submitted to Congress in 1995.
(d) Thermionics Program.--Of the amount made available
under subsection (a), $10,000,000 shall be available for the
thermionics program, to be managed by the Defense Nuclear
Agency.
(e) Electrothermal Gun Technology Program.--Of the amount
made available under subsection (a), $4,000,000 shall be
available for the electrothermal gun technology program of
the Defense Nuclear Agency.
(f) Counterterror Explosives Research Program.--Of the
amount made available under subsection (a), $4,000,000 shall
be available for the counterterror explosives research
program of the Defense Nuclear Agency.
(g) Transfer of Unobligated Balance.--The Secretary of
Defense shall transfer to the Defense Nuclear Agency, to be
available for the thermionics program, an amount not to
exceed $12,000,000 from the unobligated balance of funds
authorized and appropriated for research, development, test,
and evaluation for fiscal year 1995 for the Air Force for the
Advanced Weapons Program.

SEC. 218. COUNTERPROLIFERATION SUPPORT PROGRAM.

(a) Funding.--Of the funds authorized to be appropriated to
the Department of Defense under section 201(4), $138,237,000
shall be available for the Counterproliferation Support
Program, of which $30,000,000 shall be available for a
tactical antisatellite technologies 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 1996 to counterproliferation programs, projects,
and activities identified as areas for progress by the
Counterproliferation Program Review Committee established by
section 1605 of the National Defense Authorization Act for
Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1845).
Amounts of authorizations so transferred shall be merged with
and be 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 transferred.
(5) The Secretary of Defense shall promptly notify Congress
of transfers made under the authority of this subsection.

SEC. 219. NONLETHAL WEAPONS STUDY.

(a) Findings.--Congress finds the following:
(1) The role of the United States military in operations
other than war has increased.
(2) Weapons and instruments that are nonlethal in
application yet immobilizing could have widespread
operational utility and application.
(3) The use of nonlethal weapons in operations other than
war poses a number of important doctrine, legal, policy, and
operations questions which should be addressed in a
comprehensive and coordinated manner.
(4) The development of nonlethal technologies continues to
spread across military and agency budgets.
(5) The Department of Defense should provide improved
budgetary focus and management direction to the nonlethal
weapons program.
(b) Responsibility for Development of Nonlethal Weapons
Technology.--Not later than February 15, 1996, the Secretary
of Defense shall assign centralized responsibility for
development (and any other functional responsibility the
Secretary considers appropriate) of nonlethal weapons
technology to an existing office within the Office of the
Secretary of Defense or to a military service as the
executive agent.
(c) Report.--Not later than February 15, 1996, the
Secretary of Defense shall submit to Congress a report
setting forth the following:
(1) The name of the office or military service assigned
responsibility for the nonlethal weapons program by the
Secretary of Defense pursuant to subsection (b) and a
discussion of the rationale for such assignment.

[[Page H364]]

(2) The degree to which nonlethal weapons are required by
more than one of the armed forces.
(3) The time frame for the development and deployment of
such weapons.
(4) The appropriate role of the military departments and
defense agencies in the development of such weapons.
(5) The military doctrine, legal, policy, and operational
issues that must be addressed by the Department of Defense
before such weapons achieve operational capability.
(d) Authorization.--Of the amount authorized to be
appropriated under section 201(4), $37,200,000 shall be
available for nonlethal weapons programs and nonlethal
technologies programs.
(e) Definition.--For purposes of this section, the term
``nonlethal weapon'' means a weapon or instrument the effect
of which on human targets is less than fatal.

SEC. 220. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS
AND UNIVERSITY-AFFILIATED RESEARCH CENTERS.

(a) Centers Covered.--Funds appropriated or otherwise made
available for the Department of Defense for fiscal year 1996
pursuant to an authorization of appropriations in section 201
may be obligated to procure work from a federally funded
research and development center (in this section referred to
as an ``FFRDC'') or a university-affiliated research center
(in this section referred to as a ``UARC'') only in the case
of a center named in the report required by subsection (b)
and, in the case of such a center, only in an amount not in
excess of the amount of the proposed funding level set forth
for that center in such report.
(b) Report on Allocations for Centers.--(1) Not later than
30 days after the date of the enactment of this Act, the
Secretary of Defense shall submit to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives a report containing--
(A) the name of each FFRDC and UARC from which work is
proposed to be procured for the Department of Defense for
fiscal year 1996; and
(B) for each such center, the proposed funding level and
the estimated personnel level for fiscal year 1996.
(2) The total of the proposed funding levels set forth in
the report for all FFRDCs and UARCs may not exceed the amount
set forth in subsection (d).
(c) Limitation Pending Submission of Report.--Not more than
15 percent of the funds appropriated or otherwise made
available for the Department of Defense for fiscal year 1996
pursuant to an authorization of appropriations in section 201
for FFRDCs and UARCs may be obligated to procure work from an
FFRDC or UARC until the Secretary of Defense submits the
report required by subsection (b).
(d) Funding.--Of the amounts authorized to be appropriated
by section 201, not more than a total of $1,668,850,000 may
be obligated to procure services from the FFRDCs and UARCs
named in the report required by subsection (b).
(e) Authority To Waive Funding Limitation.--The Secretary
of Defense may waive the limitation regarding the maximum
funding amount that applies under subsection (a) to an FFRDC
or UARC. Whenever the Secretary proposes to make such a
waiver, the Secretary shall submit to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives notice of the proposed waiver
and the reasons for the waiver. The waiver may then be made
only after the end of the 60-day period that begins on the
date on which the notice is submitted to those committees,
unless the Secretary determines that it is essential to the
national security that funds be obligated for work at that
center in excess of that limitation before the end of such
period and notifies those committees of that determination
and the reasons for the determination.
(f) Five-Year Plan.--(1) The Secretary of Defense, in
consultation with the Secretaries of the military
departments, shall develop a five-year plan to reduce and
consolidate the activities performed by FFRDCs and UARCs and
establish a framework for the future workload of such
centers.
(2) The plan shall--
(A) set forth the manner in which the Secretary of Defense
could achieve by October 1, 2000, implementation by FFRDCs
and UARCs of only those core activities, as defined by the
Secretary, that require the unique capabilities and
arrangements afforded by such centers; and
(B) include an assessment of the number of personnel needed
in each FFRDC and UARC during each year over the five years
covered by the plan.
(3) Not later than February 1, 1996, the Secretary of
Defense shall submit to the congressional defense committees
a report on the plan required by this subsection.

SEC. 221. JOINT SEISMIC PROGRAM AND GLOBAL SEISMIC NETWORK.

Of the amount authorized to be appropriated under section
201(3), $9,500,000 shall be available for fiscal year 1996
(in program element 61101F in the budget of the Department of
Defense for fiscal year 1996) for continuation of the Joint
Seismic Program and Global Seismic Network.

SEC. 222. HYDRA-70 ROCKET PRODUCT IMPROVEMENT PROGRAM.

(a) Funding Authorization.--Of the amount authorized to be
appropriated under section 201(1) for Other Missile Product
Improvement Programs, $10,000,000 is authorized to be
appropriated for a Hydra-70 rocket product improvement
program and to be made available under such program for full
qualification and operational platform certification of a
Hydra-70 rocket described in subsection (b) for use on the
Apache attack helicopter.
(b) Hydra-70 Rocket Covered.--The Hydra-70 rocket referred
to in subsection (a) is any Hydra-70 rocket that has as its
propulsion component a 2.75-inch rocket motor that is a
nondevelopmental item and uses a composite propellant.
(c) Competition Required.--The Secretary of the Army shall
conduct the product improvement program referred to in
subsection (a) with full and open competition.
(d) Submission of Technical Data Package Required.--Upon
the full qualification and operational platform certification
of a Hydra-70 rocket as described in subsection (a), the
contractor providing the rocket so qualified and certified
shall submit the technical data package for the rocket to the
Secretary of the Army. The Secretary shall use the technical
data package in competitions for contracts for the
procurement of Hydra-70 rockets described in subsection (b)
for the Army.
(e) Definitions.--For purposes of this section, the terms
``full and open competition'' and ``nondevelopmental item''
have the meanings given such terms in section 4 of the Office
of Federal Procurement Policy Act (41 U.S.C. 403).

SEC. 223. LIMITATION ON OBLIGATION OF FUNDS UNTIL RECEIPT OF
ELECTRONIC COMBAT CONSOLIDATION MASTER PLAN.

(a) Limitation.--Not more than 75 percent of the amounts
appropriated or otherwise made available pursuant to the
authorization of appropriations in section 201 for test and
evaluation program elements 65896A, 65864N, 65807F, and
65804D in the budget of the Department of Defense for fiscal
year 1996 may be obligated until 14 days after the date on
which the congressional defense committees receive the plan
specified in subsection (b).
(b) Plan.--The plan referred to in subsection (a) is the
master plan for electronic combat consolidation described
under Defense-Wide Programs under Research, Development,
Test, and Evaluation in the Report of the Committee on Armed
Services of the House of Representatives on H.R. 4301 (House
Report 103-499), dated May 10, 1994.

SEC. 224. REPORT ON REDUCTIONS IN RESEARCH, DEVELOPMENT,
TEST, AND EVALUATION.

(a) Report Requirement.--Not later than March 15, 1996, the
Under Secretary of Defense (Comptroller) shall submit to the
congressional defense committees a report that sets forth in
detail the allocation of reductions for research,
development, test, and evaluation described in subsection
(b).
(b) Description of Reductions.--The reductions for
research, development, test, and evaluation covered by
subsection (a) are the following Army, Navy, Air Force, and
Defense-wide reductions, as required by the Department of
Defense Appropriations Act, 1996:
(1) General reductions.
(2) Reductions to reflect savings from revised economic
assumptions.
(3) Reductions to reflect the funding ceiling for defense
federally funded research and development centers.
(4) Reductions for savings through improved management of
contractor automatic data processing costs charged through
indirect rates on Department of Defense acquisition
contracts.

SEC. 225. ADVANCED FIELD ARTILLERY SYSTEM (CRUSADER).

(a) Authority To Use Funds for Alternative Propellant
Technologies.--During fiscal year 1996, the Secretary of the
Army may use funds appropriated for the liquid propellant
portion of the Advanced Field Artillery System (Crusader)
program for fiscal year 1996 for alternative propellant
technologies and integration of those technologies into the
design of the Crusader if--
(1) the Secretary determines that the technical risk
associated with liquid propellant will increase costs and
delay the initial operational capability of the Crusader; and
(2) the Secretary notifies the congressional defense
committees of the proposed use of the funds and the reasons
for the proposed use of the funds.
(b) Limitation.--The Secretary of the Army may not spend
funds for the liquid propellant portion of the Crusader
program after August 15, 1996, unless--
(1) the report required by subsection (c) has been
submitted by that date; and
(2) such report includes documentation of significant
progress, as determined by the Secretary, toward meeting the
objectives for the liquid propellant portion of the program,
as set forth in the baseline description for the Crusader
program and approved by the Office of the Secretary of
Defense on January 4, 1995.
(c) Report Required.--Not later than August 1, 1996, the
Secretary of the Army shall submit to the congressional
defense committees a report containing documentation of the
progress being made in meeting the objectives set forth in
the baseline description for the Crusader program and
approved by the Office of the Secretary of Defense on January
4, 1995. The report shall specifically address the progress
being made toward meeting the following objectives:

[[Page H365]]

(1) Establishment of breech and ignition design criteria
for rate of fire for the cannon of the Crusader.
(2) Selection of a satisfactory ignition concept for the
next prototype of the cannon.
(3) Selection, on the basis of modeling and simulation, of
design concepts to prevent chamber piston reversals, and
validation of the selected concepts by gun and mock chamber
firings.
(4) Achievement of an understanding of the chemistry and
physics of propellant burn resulting from the firing of
liquid propellant into any target zone, and achievement, on
the basis of modeling and simulation, of an ignition process
that is predictable.
(5) Completion of an analysis of the management of heat
dissipation for the full range of performance requirements
for the cannon, completion of concept designs supported by
that analysis, and proposal of such concept designs for
engineering.
(6) Development, for integration into the next prototype of
the cannon, of engineering designs to control pressure
oscillations in the chamber of the cannon during firing.
(7) Completion of an assessment of the sensitivity of
liquid propellant to contamination by various materials to
which it may be exposed throughout the handling and operation
of the cannon, and documentation of predictable reactions of
contaminated or sensitized liquid propellant.
(d) Additional Matters To Be Covered by Report.--The report
required by subsection (c) also shall contain the following:
(1) An assertion that all the known hazards associated with
liquid propellant have been identified and are controllable
to acceptable levels.
(2) An assessment of the technology for each component of
the Crusader (the cannon, vehicle, and crew module),
including, for each performance goal of the Crusader program
(including the goal for total system weight), information
about the maturity of the technology to achieve that goal,
the maturity of the design of the technology, and the manner
in which the design has been proven (for example, through
simulation, bench testing, or weapon firing).
(3) An assessment of the cost of continued development of
the Crusader after August 1, 1996, and the cost of each unit
of the Crusader in the year the Crusader will be completed.

SEC. 226. DEMILITARIZATION OF CONVENTIONAL MUNITIONS,
ROCKETS, AND EXPLOSIVES.

Of the amount appropriated pursuant to the authorization in
section 201 for explosives demilitarization technology,
$15,000,000 shall be available to establish an integrated
program for the development and demonstration of conventional
munitions and explosives demilitarization technologies that
comply with applicable environmental laws for the
demilitarization and disposal of unserviceable, obsolete, or
nontreaty compliant munitions, rocket motors, and explosives.

SEC. 227. DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.

(a) Limitation.--Not more than three percent of the total
amount appropriated for research and development under the
Defense Airborne Reconnaissance program pursuant to the
authorizations of appropriations in section 201 may be
obligated for systems engineering and technical assistance
(SETA) contracts until--
(1) funds are obligated (out of such appropriated funds)
for--
(A) the upgrade of U-2 aircraft senior year electro-optical
reconnaissance sensors to the newest configuration; and
(B) the upgrade of the U-2 SIGINT system; and
(2) the Under Secretary of Defense for Acquisition and
Technology submits the report required under subsection (b).
(b) Report on U-2-Related Upgrades.--(1) Not later than
April 1, 1996, the Under Secretary of Defense for Acquisition
and Technology shall transmit to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives a report on obligations of
funds for upgrades relating to airborne reconnaissance by U-2
aircraft.
(2) The report shall set forth the specific purposes under
the general purposes described in subparagraphs (A) and (B)
of subsection (a)(1) for which funds have been obligated (as
of the date of the report) and the amounts that have been
obligated (as of such date) for those specific purposes.
Subtitle C--Ballistic Missile Defense Act of 1995

SEC. 231. SHORT TITLE.

This subtitle may be cited as the ``Ballistic Missile
Defense Act of 1995''.

SEC. 232. FINDINGS.

Congress makes the following findings:
(1) The emerging threat that is posed to the national
security interests of the United States by the proliferation
of ballistic missiles is significant and growing, both in
terms of numbers of missiles and in terms of the technical
capabilities of those missiles.
(2) The deployment of ballistic missile defenses is a
necessary, but not sufficient, element of a broader strategy
to discourage both the proliferation of weapons of mass
destruction and the proliferation of the means of their
delivery and to defend against the consequences of such
proliferation.
(3) The deployment of effective Theater Missile Defense
systems can deter potential adversaries of the United States
from escalating a conflict by threatening or attacking United
States forces or the forces or territory of coalition
partners or allies of the United States with ballistic
missiles armed with weapons of mass destruction to offset the
operational and technical advantages of the United States and
its coalition partners and allies.
(4) United States intelligence officials have provided
intelligence estimates to congressional committees that (A)
the trend in missile proliferation is toward longer range and
more sophisticated ballistic missiles, (B) North Korea may
deploy an intercontinental ballistic missile capable of
reaching Alaska or beyond within five years, and (C) although
a new, indigenously developed ballastic missile threat to the
continental United States is not foreseen within the next ten
years, determined countries can acquire intercontinental
ballistic missiles in the near future and with little warning
by means other than indigenous development.
(5) The development and deployment by the United States and
its allies of effective defenses against ballistic missiles
of all ranges will reduce the incentives for countries to
acquire such missiles or to augment existing missile
capabilities.
(6) The concept of mutual assured destruction (based upon
an offense-only form of deterrence), which is the major
philosophical rationale underlying the ABM Treaty, is now
questionable as a basis for stability in a multipolar world
in which the United States and the states of the former
Soviet Union are seeking to normalize relations and eliminate
Cold War attitudes and arrangements.
(7) The development and deployment of a National Missile
Defense system against the threat of limited ballistic
missile attacks--
(A) would strengthen deterrence at the levels of forces
agreed to by the United States and Russia under the Strategic
Arms Reduction Talks Treaty (START-I); and
(B) would further strengthen deterrence if reductions below
the levels permitted under START-I should be agreed to and
implemented in the future.
(8) The distinction made during the Cold War, based upon
the technology of the time, between strategic ballistic
missiles and nonstrategic ballistic missiles, which resulted
in the distinction made in the ABM Treaty between strategic
defense and nonstrategic defense, has become obsolete because
of technological advancement (including the development by
North Korea of long-range Taepo-Dong I and Taepo-Dong II
missiles) and, therefore, that distinction in the ABM Treaty
should be reviewed.

SEC. 233. BALLISTIC MISSILE DEFENSE POLICY.

It is the policy of the United States--
(1) to deploy affordable and operationally effective
theater missile defenses to protect forward-deployed and
expeditionary elements of the Armed Forces of the United
States and to complement the missile defense capabilities of
forces of coalition partners and of allies of the United
States; and
(2) to seek a cooperative, negotiated transition to a
regime that does not feature an offense-only form of
deterrence as the basis for strategic stability.

SEC. 234. THEATER MISSILE DEFENSE ARCHITECTURE.

(a) Establishment of Core Program.--To implement the policy
established in paragraph (1) of section 233, the Secretary of
Defense shall restructure the core theater missile defense
program to consist of the following systems, to be carried
out so as to achieve the specified capabilities:
(1) The Patriot PAC-3 system, with a first unit equipped
(FUE) during fiscal year 1998.
(2) The Navy Lower Tier (Area) system, with a user
operational evaluation system (UOES) capability during fiscal
year 1997 and an initial operational capability (IOC) during
fiscal year 1999.
(3) The Theater High-Altitude Area Defense (THAAD) system,
with a user operational evaluation system (UOES) capability
not later than fiscal year 1998 and a first unit equipped
(FUE) not later than fiscal year 2000.
(4) The Navy Upper Tier (Theater Wide) system, with a user
operational evaluation system (UOES) capability during fiscal
year 1999 and an initial operational capability (IOC) during
fiscal year 2001.
(b) Use of Streamlined Acquisition Procedures.--The
Secretary of Defense shall prescribe and use streamlined
acquisition policies and procedures to reduce the cost and
increase the efficiency of developing and deploying the
theater missile defense systems specified in subsection (a).
(c) Interoperability and Support of Core Systems.--To
maximize effectiveness and flexibility of the systems
comprising the core theater missile defense program, the
Secretary of Defense shall ensure that those systems are
integrated and complementary and are fully capable of
exploiting external sensor and battle management support from
systems such as--
(A) the Cooperative Engagement Capability (CEC) system of
the Navy;
(B) airborne sensors; and
(C) space-based sensors (including, in particular, the
Space and Missile Tracking System).
(d) Follow-on Systems.--(1) The Secretary of Defense shall
prepare an affordable development plan for theater missile
defense systems to be developed as follow-on systems to the
core systems specified in subsection (a). The Secretary shall
make the selection of a system for inclusion in the plan
based on the capability of the system to satisfy military
requirements not met by the systems in the

[[Page H366]]
core program and on the capability of the system to use prior
investments in technologies, infrastructure, and battle-
management capabilities that are incorporated in, or
associated with, the systems in the core program.
(2) The Secretary may not proceed with the development of a
follow-on theater missile defense system beyond the
Demonstration/Validation stage of development unless the
Secretary designates that system as a part of the core
program under this section and submits to the congressional
defense committees notice of that designation. The Secretary
shall include with any such notification a report
describing--
(A) the requirements for the system and the specific
threats that such system is designed to counter;
(B) how the system will relate to, support, and build upon
existing core systems;
(C) the planned acquisition strategy for the system; and
(D) a preliminary estimate of total program cost for that
system and the effect of development and acquisition of such
system on Department of Defense budget projections.
(e) Program Accountability Report.--(1) As part of the
annual report of the Ballistic Missile Defense Organization
required by section 224 of Public Law 101-189 (10 U.S.C. 2431
note), the Secretary of Defense shall describe the technical
milestones, the schedule, and the cost of each phase of
development and acquisition (together with total estimated
program costs) for each core and follow-on theater missile
defense program.
(2) As part of such report, the Secretary shall describe,
with respect to each program covered in the report, any
variance in the technical milestones, program schedule
milestones, and costs for the program compared with the
information relating to that program in the report submitted
in the previous year and in the report submitted in the first
year in which that program was covered.
(f) Reports on TMD System Limitations Under ABM Treaty.--
(1) Whenever, after January 1, 1993, the Secretary of Defense
issues a certification with respect to the compliance of a
particular Theater Missile Defense system with the ABM
Treaty, the Secretary shall transmit to the Committee on
Armed Services of the Senate and the Committee on National
Security of the House of Representatives a copy of such
certification. Such transmittal shall be made not later than
30 days after the date on which such certification is issued,
except that in the case of a certification issued before the
date of the enactment of this Act, such transmittal shall be
made not later than 60 days after the date of the enactment
of this Act.
(2) If a certification under paragraph (1) is based on
application of a policy concerning United States compliance
with the ABM Treaty that differs from the policy described in
section 235(b)(1), the Secretary shall include with the
transmittal under that paragraph a report providing a
detailed assessment of--
(A) how the policy applied differs from the policy
described in section 235(b)(1); and
(B) how the application of that policy (rather than the
policy described in section 235(b)(1)) will affect the cost,
schedule, and performance of that system.

SEC. 235. PROHIBITION ON USE OF FUNDS TO IMPLEMENT AN
INTERNATIONAL AGREEMENT CONCERNING THEATER
MISSILE DEFENSE SYSTEMS.

(a) Findings.--(1) Congress hereby reaffirms--
(A) the finding in section 234(a)(7) of the National
Defense Authorization Act for Fiscal Year 1994 (Public Law
103-160; 107 Stat. 1595; 10 U.S.C. 2431 note) that the ABM
Treaty was not intended to, and does not, apply to or limit
research, development, testing, or deployment of missile
defense systems, system upgrades, or system components that
are designed to counter modern theater ballistic missiles,
regardless of the capabilities of such missiles, unless those
systems, system upgrades, or system components are tested
against or have demonstrated capabilities to counter modern
strategic ballistic missiles; and
(B) the statement in section 232 of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103-337;
108 Stat. 2700) that the United States shall not be bound by
any international agreement entered into by the President
that would substantively modify the ABM Treaty unless the
agreement is entered into pursuant to the treaty making power
of the President under the Constitution.
(2) Congress also finds that the demarcation standard
described in subsection (b)(1) for compliance of a missile
defense system, system upgrade, or system component with the
ABM Treaty is based upon current technology.
(b) Sense of Congress Concerning Compliance Policy.--It is
the sense of Congress that--
(1) unless a missile defense system, system upgrade, or
system component (including one that exploits data from
space-based or other external sensors) is flight tested in an
ABM-qualifying flight test (as defined in subsection (e)),
that system, system upgrade, or system component has not, for
purposes of the ABM Treaty, been tested in an ABM mode nor
been given capabilities to counter strategic ballistic
missiles and, therefore, is not subject to any application,
limitation, or obligation under the ABM Treaty; and
(2) any international agreement that would limit the
research, development, testing, or deployment of missile
defense systems, system upgrades, or system components that
are designed to counter modern theater ballistic missiles in
a manner that would be more restrictive than the compliance
criteria specified in paragraph (1) should be entered into
only pursuant to the treaty making powers of the President
under the Constitution.
(c) Prohibition on Funding.--Funds appropriated or
otherwise made available to the Department of Defense for
fiscal year 1996 may not be obligated or expended to
implement an agreement, or any understanding with respect to
interpretation of the ABM Treaty, between the United States
and any of the independent states of the former Soviet Union
entered into after January 1, 1995, that--
(1) would establish a demarcation between theater missile
defense systems and anti-ballistic missile systems for
purposes of the ABM Treaty; or
(2) would restrict the performance, operation, or
deployment of United States theater missile defense systems.
(d) Exceptions.--Subsection (c) does not apply--
(1) to the extent provided by law in an Act enacted after
this Act;
(2) to expenditures to implement that portion of any such
agreement or understanding that implements the policy set
forth in subsection (b)(1); or
(3) to expenditures to implement any such agreement or
understanding that is approved as a treaty or by law.
(e) ABM-Qualifying Flight Test Defined.--For purposes of
this section, an ABM-qualifying flight test is a flight test
against a ballistic missile which, in that flight test,
exceeds (1) a range of 3,500 kilometers, or (2) a velocity of
5 kilometers per second.

SEC. 236. BALLISTIC MISSILE DEFENSE COOPERATION WITH ALLIES.

It is in the interest of the United States to develop its
own missile defense capabilities in a manner that will permit
the United States to complement the missile defense
capabilities developed and deployed by its allies and
possible coalition partners. Therefore, the Congress urges
the President--
(1) to pursue high-level discussions with allies of the
United States and selected other states on the means and
methods by which the parties on a bilateral basis can
cooperate in the development, deployment, and operation of
ballistic missile defenses;
(2) to take the initiative within the North Atlantic Treaty
Organization to develop consensus in the Alliance for a
timely deployment of effective ballistic missile defenses by
the Alliance; and
(3) in the interim, to seek agreement with allies of the
United States and selected other states on steps the parties
should take, consistent with their national interests, to
reduce the risks posed by the threat of limited ballistic
missile attacks, such steps to include--
(A) the sharing of early warning information derived from
sensors deployed by the United States and other states;
(B) the exchange on a reciprocal basis of technical data
and technology to support both joint development programs and
the sale and purchase of missile defense systems and
components; and
(C) operational level planning to exploit current missile
defense capabilities and to help define future requirements.

SEC. 237. ABM TREATY DEFINED.

For purposes of this subtitle, the term ``ABM Treaty''
means the Treaty Between the United States of America and the
Union of Soviet Socialist Republics on the Limitation of
Anti-Ballistic Missile Systems, and signed at Moscow on May
26, 1972, and includes the Protocols to that Treaty, signed
at Moscow on July 3, 1974.

SEC. 238. REPEAL OF MISSILE DEFENSE ACT OF 1991.

The Missile Defense Act of 1991 (10 U.S.C. 2431 note) is
repealed.
Subtitle D--Other Ballistic Missile Defense Provisions

SEC. 251. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.

(a) Elements Specified.--In the budget justification
materials submitted to Congress in support of the Department
of Defense budget for any fiscal year after fiscal year 1996
(as submitted with the budget of the President under section
1105(a) of title 31, United States Code), the amount
requested for activities of the Ballistic Missile Defense
Organization shall be set forth in accordance with the
following program elements:
(1) The Patriot system.
(2) The Navy Lower Tier (Area) system.
(3) The Theater High-Altitude Area Defense (THAAD) system.
(4) The Navy Upper Tier (Theater Wide) system.
(5) The Corps Surface-to-Air Missile (SAM) system.
(6) Other Theater Missile Defense Activities.
(7) National Missile Defense.
(8) Follow-On and Support Technologies.
(b) Treatment of Core Theater Missile Defense Programs.--
Amounts requested for core theater missile defense programs
specified in section 234 shall be specified in individual,
dedicated program elements, and amounts appropriated for such
programs shall be available only for activities covered by
those program elements.

[[Page H367]]

(c) BM/C3I Programs.--Amounts requested for programs,
projects, and activities involving battle management,
command, control, communications, and intelligence (BM/
C3I) shall be included in the ``Other Theater Missile
Defense Activities'' program element or the ``National
Missile Defense'' program element, as determined on the basis
of the primary objectives involved.
(d) Management and Support.--Each program element shall
include requests for the amounts necessary for the management
and support of the programs, projects, and activities
contained in that program element.

SEC. 252. TESTING OF THEATER MISSILE DEFENSE INTERCEPTORS.

Subsection (a) of section 237 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 103-160;
107 Stat. 1600) is amended to read as follows:
``(a) Testing of Theater Missile Defense Interceptors.--(1)
The Secretary of Defense may not approve a theater missile
defense interceptor program proceeding beyond the low-rate
initial production acquisition stage until the Secretary
certifies to the congressional defense committees that
such program has successfully completed initial
operational test and evaluation.
``(2) In order to be certified under paragraph (1) as
having been successfully completed, the initial operational
test and evaluation conducted with respect to an interceptors
program must have included flight tests--
``(A) that were conducted with multiple interceptors and
multiple targets in the presence of realistic
countermeasures; and
``(B) the results of which demonstrate the achievement by
the interceptors of the baseline performance thresholds.
``(3) For purposes of this subsection, the baseline
performance thresholds with respect to a program are the
weapons systems performance thresholds specified in the
baseline description for the system established (pursuant to
section 2435(a)(1) of title 10, United States Code) before
the program entered the engineering and manufacturing
development stage.
``(4) The number of flight tests described in paragraph (2)
that are required in order to make the certification under
paragraph (1) shall be a number determined by the Secretary
of Defense to be sufficient for the purposes of this section.
``(5) The Secretary may augment live-fire testing to
demonstrate weapons system performance goals for purposes of
the certification under paragraph (1) through the use of
modeling and simulation that is validated by ground and
flight testing.''.

SEC. 253. REPEAL OF MISSILE DEFENSE PROVISIONS.

The following provisions of law are repealed:
(1) Section 222 of the Department of Defense Authorization
Act, 1986 (Public Law 99-145; 99 Stat. 613; 10 U.S.C. 2431
note).
(2) Section 225 of the Department of Defense Authorization
Act, 1986 (Public Law 99-145; 99 Stat. 614).
(3) Section 226 of the National Defense Authorization Act
for Fiscal Years 1988 and 1989 (Public Law 100-180; 101 Stat.
1057; 10 U.S.C. 2431 note).
(4) Section 8123 of the Department of Defense
Appropriations Act, 1989 (Public Law 100-463; 102 Stat. 2270-
40).
(5) Section 8133 of the Department of Defense
Appropriations Act, 1992 (Public Law 102-172; 105 Stat.
1211).
(6) Section 234 of the National Defense Authorization Act
for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1595; 10
U.S.C. 2431 note).
(7) Section 242 of the National Defense Authorization Act
for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1603; 10
U.S.C. 2431 note).
(8) Section 235 of the National Defense Authorization Act
for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2701; 10
U.S.C. 221 note).
(9) Section 2609 of title 10, United States Code.
Subtitle E--Miscellaneous Reviews, Studies, and Reports

SEC. 261. PRECISION-GUIDED MUNITIONS.

(a) Analysis Required.--The Secretary of Defense shall
perform an analysis of the full range of precision-guided
munitions in production and in research, development, test,
and evaluation in order to determine the following:
(1) The numbers and types of precision-guided munitions
that are needed to provide complementary capabilities against
each target class.
(2) The feasibility of carrying out joint development and
procurement of additional types of munitions by more than one
of the Armed Forces.
(3) The feasibility of integrating a particular precision-
guided munition on multiple service platforms.
(4) The economy and effectiveness of continuing the
acquisition of--
(A) interim precision-guided munitions; or
(B) precision-guided munitions that, as a result of being
procured in decreasing numbers to meet decreasing quantity
requirements, have increased in cost per unit by more than 50
percent over the cost per unit for such munitions as of
December 1, 1991.
(b) Report.--(1) Not later than April 15, 1996, the
Secretary shall submit to Congress a report on the findings
and other results of the analysis.
(2) The report shall include a detailed discussion of the
process by which the Department of Defense--
(A) approves the development of new precision-guided
munitions;
(B) avoids duplication and redundancy in the precision-
guided munitions programs of the Army, Navy, Air Force, and
Marine Corps;
(C) ensures rationality in the relationship between the
funding plans for precision-guided munitions modernization
for fiscal years following fiscal year 1996 and the costs of
such modernization for those fiscal years; and
(D) identifies by name and function each person responsible
for approving each new precision-guided munition for initial
low-rate production.
(c) Funding Limitation.--Funds authorized to be
appropriated by this Act may not be expended for research,
development, test, and evaluation or procurement of interim
precision-guided munitions after April 15, 1996, unless the
Secretary of Defense has submitted the report under
subsection (b).
(d) Interim Precision-Guided Munition Defined.--For
purposes of subsection (c), a precision-guided munition is an
interim precision-guided munition if the munition is being
procured in fiscal year 1996, but funding is not proposed for
additional procurement of the munition in the fiscal years
after fiscal year 1996 that are covered by the future years
defense program submitted to Congress in 1995 under section
221(a) of title 10, United States Code.

SEC. 262. REVIEW OF C4I BY NATIONAL RESEARCH COUNCIL.

(a) Review by National Research Council.--Not later than 90
days after the date of the enactment of this Act, the
Secretary of Defense shall request the National Research
Council of the National Academy of Sciences to conduct a
comprehensive review of current and planned service and
defense-wide programs for command, control, communications,
computers, and intelligence (C4I) with a special focus
on cross-service and inter-service issues.
(b) Matters To Be Assessed in Review.--The review shall
address the following:
(1) The match between the capabilities provided by current
service and defense-wide C4I programs and the actual
needs of users of these programs.
(2) The interoperability of service and defense-wide
C4I systems that are planned to be operational in the
future.
(3) The need for an overall defense-wide architecture for
C4I.
(4) Proposed strategies for ensuring that future C4I
acquisitions are compatible and interoperable with an overall
architecture.
(5) Technological and administrative aspects of the
C4I modernization effort to determine the soundness of
the underlying plan and the extent to which it is consistent
with concepts for joint military operations in the future.
(c) Two-Year Period for Conducting Review.--The review
shall be conducted over the two-year period beginning on the
date on which the National Research Council and the Secretary
of Defense enter into a contract or other agreement for the
conduct of the review.
(d) Reports.--(1) In the contract or other agreement for
the conduct of the review, the Secretary of Defense shall
provide that the National Research Council shall submit to
the Department of Defense and Congress interim reports and
progress updates on a regular basis as the review proceeds. A
final report on the review shall set forth the findings,
conclusions, and recommendations of the Council for defense-
wide and service C4I programs and shall be submitted to
the Committee on Armed Services of the Senate, the Committee
on National Security of the House of Representatives, and the
Secretary of Defense.
(2) To the maximum degree possible, the final report shall
be submitted in unclassified form with classified annexes as
necessary.
(e) Interagency Cooperation With Study.--All military
departments, defense agencies, and other components of the
Department of Defense shall cooperate fully with the National
Research Council in its activities in carrying out the review
under this section.
(f) Expedited Processing of Security Clearances for
Study.--For the purpose of facilitating the commencement of
the study under this section, the Secretary of Defense shall
expedite to the fullest degree possible the processing of
security clearances that are necessary for the National
Research Council to conduct the study.
(g) Funding.--Of the amount authorized to be appropriated
in section 201 for defense-wide activities, $900,000 shall be
available for the study under this section.

SEC. 263. ANALYSIS OF CONSOLIDATION OF BASIC RESEARCH
ACCOUNTS OF MILITARY DEPARTMENTS.

(a) Analysis Required.--The Secretary of Defense shall
conduct an analysis of the cost and effectiveness of
consolidating the basic research accounts of the military
departments. The analysis shall determine potential
infrastructure savings and other benefits of co-locating and
consolidating the management of basic research.
(b) Deadline.--On or before March 1, 1996, the Secretary
shall submit to the Committee on Armed Services of the Senate
and the Committee on National Security of the House of
Representatives a report on the analysis conducted under
subsection (a).

[[Page H368]]

SEC. 264. CHANGE IN REPORTING PERIOD FROM CALENDAR YEAR TO
FISCAL YEAR FOR ANNUAL REPORT ON CERTAIN
CONTRACTS TO COLLEGES AND UNIVERSITIES.

Section 2361(c)(2) of title 10, United States Code, is
amended--
(1) by striking out ``calendar year'' and inserting in lieu
thereof ``fiscal year''; and
(2) by striking out ``the year after the year'' and
inserting in lieu thereof ``the fiscal year after the fiscal
year''.

SEC. 265. AERONAUTICAL RESEARCH AND TEST CAPABILITIES
ASSESSMENT.

(a) Findings.--Congress finds the following:
(1) It is in the Nation's long-term national security
interests for the United States to maintain preeminence in
the area of aeronautical research and test capabilities.
(2) Continued advances in aeronautical science and
engineering are critical to sustaining the strategic and
tactical air superiority of the United States and coalition
forces, as well as United States economic security and
international aerospace leadership.
(3) It is in the national security and economic interests
of the United States and the budgetary interests of the
Department of Defense for the department to encourage the
establishment of active partnerships between the department
and other Government agencies, academic institutions, and
private industry to develop, maintain, and enhance
aeronautical research and test capabilities.
(b) Review.--The Secretary of Defense shall conduct a
comprehensive review of the aeronautical research and test
facilities and capabilities of the United States in order to
assess the current condition of such facilities and
capabilities.
(c) Report.--(1) Not later than March 1, 1996, the
Secretary of Defense shall submit to the congressional
defense committees a report setting forth in detail the
findings of the review required by subsection (b).
(2) The report shall include the following:
(A) The options for providing affordable, operable,
reliable, and responsive long-term aeronautical research and
test capabilities for military and civilian purposes and for
the organization and conduct of such capabilities within the
Department or through shared operations with other Government
agencies, academic institutions, and private industry.
(B) The projected costs of such options, including costs of
acquisition and technical and financial arrangements
(including the use of Government facilities for reimbursable
private use).
(C) Recommendations on the most efficient and economic
means of developing, maintaining, and continually modernizing
aeronautical research and test capabilities to meet current,
planned, and prospective military and civilian needs.
Subtitle F--Other Matters

SEC. 271. ADVANCED LITHOGRAPHY PROGRAM.

Section 216 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2693) is
amended--
(1) in subsection (a), by striking out ``to help achieve''
and all that follows through the end of the subsection and
inserting in lieu thereof ``to ensure that lithographic
processes being developed by United States-owned companies or
United States-incorporated companies operating in the United
States will lead to superior performance electronics systems
for the Department of Defense.'';
(2) in subsection (b), by adding at the end the following
new paragraph:
``(3) The Director of the Defense Advanced Research
Projects Agency may set priorities and funding levels for
various technologies being developed for the ALP and shall
consider funding recommendations made by the Semiconductor
Industry Association as being advisory in nature.'';
(3) in subsection (c)--
(A) by inserting ``Defense'' before ``Advanced''; and
(B) by striking out ``ARPA'' both places it appears and
inserting in lieu thereof ``DARPA''; and
(4) by adding at the end the following:
``(d) Definitions.--In this section:
``(1) The term `United States-owned company' means a
company the majority ownership or control of which is held by
citizens of the United States.
``(2) The term `United States-incorporated company' means a
company that the Secretary of Defense finds is incorporated
in the United States and has a parent company that is
incorporated in a country--
``(A) that affords to United States-owned companies
opportunities, comparable to those afforded to any other
company, to participate in any joint venture similar to those
authorized under section 28 of the National Institute of
Standards and Technology Act (15 U.S.C. 278n);
``(B) that affords to United States-owned companies local
investment opportunities comparable to those afforded to any
other company; and
``(C) that affords adequate and effective protection for
the intellectual property rights of United States-owned
companies.''.

SEC. 272. ENHANCED FIBER OPTIC GUIDED MISSILE (EFOG-M)
SYSTEM.

(a) Limitations.--(1) The Secretary of the Army may not
obligate more than $280,000,000 (based on fiscal year 1995
constant dollars) to develop and deliver for test and
evaluation by the Army the following items:
(A) 44 enhanced fiber optic guided test missiles.
(B) 256 fully operational enhanced fiber optic guided
missiles.
(C) 12 fully operational fire units.
(2) The Secretary of the Army may not spend funds for the
enhanced fiber optic guided missile (EFOG-M) system after
September 30, 1998, if the items described in paragraph (1)
have not been delivered to the Army by that date and at a
cost not greater than the amount set forth in paragraph (1).
(3) The Secretary of the Army may not enter into an
advanced development phase for the EFOG-M system unless--
(A) an advanced concept technology demonstration of the
system has been successfully completed; and
(B) the Secretary certifies to the congressional defense
committees that there is a requirement for the EFOG-M system
that is supported by a cost and operational effectiveness
analysis.
(b) Government-Furnished Equipment.--The Secretary of the
Army shall ensure that all Government-furnished equipment
that the Army agrees to provide under the contract for the
EFOG-M system is provided to the prime contractor in
accordance with the terms of the contract.

SEC. 273. STATES ELIGIBLE FOR ASSISTANCE UNDER DEFENSE
EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE
RESEARCH.

Subparagraph (A) of section 257(d)(2) of the National
Defense Authorization Act for Fiscal Year 1995 (Public Law
103-337; 108 Stat. 2705; 10 U.S.C. 2358 note) is amended to
read as follows:
``(A) the average annual amount of all Department of
Defense obligations for science and engineering research and
development that were in effect with institutions of higher
education in the State for the three fiscal years preceding
the fiscal year for which the designation is effective or for
the last three fiscal years for which statistics are
available is less than the amount determined by multiplying
60 percent times the amount equal to \1/50\ of the total
average annual amount of all Department of Defense
obligations for science and engineering research and
development that were in effect with institutions of higher
education in the United States for such three preceding or
last fiscal years, as the case may be (to be determined in
consultation with the Secretary of Defense);''.

SEC. 274. CRUISE MISSILE DEFENSE INITIATIVE.

(a) In General.--The Secretary of Defense shall undertake
an initiative to coordinate and strengthen the cruise missile
defense programs of the Department of Defense to ensure that
the United States develops and deploys affordable and
operationally effective defenses against existing and future
cruise missile threats to United States military forces and
operations.
(b) Coordination With Ballistic Missile Defense Efforts.--
In carrying out subsection (a), the Secretary shall ensure
that, to the extent practicable, the cruise missile defense
programs of the Department of Defense and the ballistic
missile defense programs of the Department of Defense are
coordinated with each other and that those programs are
mutually supporting.
(c) Defenses Against Existing and Near-Term Cruise Missile
Threats.--As part of the initiative under subsection (a), the
Secretary shall ensure that appropriate existing and planned
air defense systems are upgraded to provide an affordable and
operationally effective defense against existing and near-
term cruise missile threats to United States military forces
and operations.
(d) Defenses Against Advanced Cruise Missiles.--As part of
the initiative under subsection (a), the Secretary shall
undertake a well-coordinated development program to support
the future deployment of cruise missile defense systems that
are affordable and operationally effective against advanced
cruise missiles, including cruise missiles with low
observable features.
(e) Implementation Plan.--Not later than the date on which
the President submits the budget for fiscal year 1997 under
section 1105 of title 31, United States Code, the Secretary
of Defense shall submit to the congressional defense
committees a detailed plan, in unclassified and classified
forms, as necessary, for carrying out this section. The plan
shall include an assessment of the following:
(1) The systems of the Department of Defense that currently
have or could have cruise missile defense capabilities and
existing programs of the Department of Defense to improve
these capabilities.
(2) The technologies that could be deployed in the near- to
mid-term to provide significant advances over existing cruise
missile defense capabilities and the investments that would
be required to ready those technologies for deployment.
(3) The cost and operational tradeoffs, if any, between (A)
upgrading existing air and missile defense systems, and (B)
accelerating follow-on systems with significantly improved
capabilities against advanced cruise missiles.
(4) The organizational and management changes that would
strengthen and further coordinate the cruise missile defense
programs of the Department of Defense, including the
disadvantages, if any, of implementing such changes.
(f) Definition.--For the purposes of this section, the term
``cruise missile defense programs'' means the programs,
projects, and activities of the military departments, the
Advanced Research Projects Agency, and the Ballistic Missile
Defense Organization

[[Page H369]]
relating to development and deployment of defenses against cruise
missiles.

SEC. 275. MODIFICATION TO UNIVERSITY RESEARCH INITIATIVE
SUPPORT PROGRAM.

Section 802 of the National Defense Authorization Act for
Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1701) is
amended--
(1) in subsections (a) and (b), by striking out ``shall''
both places it appears and inserting in lieu thereof ``may'';
and
(2) in subsection (e), by striking out the sentence
beginning with ``Such selection process''.

SEC. 276. MANUFACTURING TECHNOLOGY PROGRAM.

(a) In General.--Section 2525 of title 10, United States
Code, is amended as follows:
(1) The heading is amended by striking out the second and
third words.
(2) Subsection (a) is amended--
(A) by striking out ``Science and''; and
(B) by inserting after the first sentence the following:
``The Secretary shall use the joint planning process of the
directors of the Department of Defense laboratories in
establishing the program.''.
(3) Subsection (c) is amended--
(A) by inserting ``(1)'' after ``(c) Execution.--''; and
(B) by adding at the end the following:
``(2) The Secretary shall seek, to the extent practicable,
the participation of manufacturers of manufacturing equipment
in the projects under the program.''.
(4) Subsection (d) is amended--
(A) in paragraph (2)--
(i) by striking out ``or'' at the end of subparagraph (A);
(ii) by striking out the period at the end of subparagraph
(B) and inserting in lieu thereof ``; or''; and
(iii) by adding at the end the following new subparagraph:
``(C) will be carried out by an institution of higher
education.''; and
(B) by adding at the end the following new paragraphs:
``(3) At least 25 percent of the funds available for the
program each fiscal year shall be used for awarding grants
and entering into contracts, cooperative agreements, and
other transactions on a cost-share basis under which the
ratio of recipient cost to Government cost is two to one.
``(4) If the requirement of paragraph (3) cannot be met by
July 15 of a fiscal year, the Under Secretary of Defense for
Acquisition and Technology may waive the requirement and
obligate the balance of the funds available for the program
for that fiscal year on a cost-share basis under which the
ratio of recipient cost to Government cost is less than two
to one. Before implementing any such waiver, the Under
Secretary shall submit to the Committee on Armed Services of
the Senate and the Committee on National Security of the
House of Representatives the reasons for the waiver.''.
(b) Clerical Amendment.--The item relating to section 2525
in the table of sections at the beginning of subchapter IV of
chapter 148 of title 10, United States Code, is amended to
read as follows:

``2525. Manufacturing Technology Program.''.

SEC. 277. FIVE-YEAR PLAN FOR CONSOLIDATION OF DEFENSE
LABORATORIES AND TEST AND EVALUATION CENTERS.

(a) Five-Year Plan.--The Secretary of Defense, acting
through the Vice Chief of Staff of the Army, the Vice Chief
of Naval Operations, and the Vice Chief of Staff of the Air
Force (in their roles as test and evaluation executive agent
board of directors) shall develop a five-year plan to
consolidate and restructure the laboratories and test and
evaluation centers of the Department of Defense.
(b) Objective.--The plan shall set forth the specific
actions needed to consolidate the laboratories and test and
evaluation centers into as few laboratories and centers as is
practical and possible, in the judgment of the Secretary, by
October 1, 2005.
(c) Previously Developed Data Required To Be Used.--In
developing the plan, the Secretary shall use the following:
(1) Data and results obtained by the Test and Evaluation
Joint Cross-Service Group and the Laboratory Joint Cross-
Service Group in developing recommendations for the 1995
report of the Defense Base Closure and Realignment
Commission.
(2) The report dated March 1994 on the consolidation and
streamlining of the test and evaluation infrastructure,
commissioned by the test and evaluation board of directors,
along with all supporting data and reports.
(d) Matters To Be Considered.--In developing the plan, the
Secretary shall consider, at a minimum, the following:
(1) Consolidation of common support functions, including
the following:
(A) Aircraft (fixed wing and rotary) support.
(B) Weapons support.
(C) Space systems support.
(D) Support of command, control, communications, computers,
and intelligence.
(2) The extent to which any military construction,
acquisition of equipment, or modernization of equipment is
planned at the laboratories and centers.
(3) The encroachment on the laboratories and centers by
residential and industrial expansion.
(4) The total cost to the Federal Government of continuing
to operate the laboratories and centers.
(5) The cost savings and program effectiveness of locating
laboratories and centers at the same sites.
(6) Any loss of expertise resulting from the
consolidations.
(7) Whether any legislation is neccessary to provide the
Secretary with any additional authority necessary to
accomplish the downsizing and consolidation of the
laboratories and centers.
(e) Report.--Not later than May 1, 1996, the Secretary of
Defense shall submit to the congressional defense committees
a report on the plan. The report shall include an
identification of any additional legislation that the
Secretary considers necessary in order for the Secretary to
accomplish the downsizing and consolidation of the
laboratories and centers.
(f) Limitation.--Of the amounts appropriated or otherwise
made available pursuant to an authorization of appropriations
in section 201 for the central test and evaluation investment
development program, not more than 75 percent may be
obligated before the report required by subsection (e) is
submitted to Congress.

SEC. 278. LIMITATION ON T-38 AVIONICS UPGRADE PROGRAM.

(a) Requirement.--The Secretary of Defense shall ensure
that, in evaluating proposals submitted in response to a
solicitation issued for a contract for the T-38 Avionics
Upgrade Program, the proposal of an entity may not be
considered unless--
(1) in the case of an entity that conducts substantially
all of its business in a foreign country, the foreign country
provides equal access to similar contract solicitations in
that country to United States entities; and
(2) in the case of an entity that conducts business in the
United States but that is owned or controlled by a foreign
government or by an entity incorporated in a foreign country,
the foreign government or foreign country of incorporation
provides equal access to similar contract solicitations in
that country to United States entities.
(b) Definition.--In this section, the term ``United States
entity'' means an entity that is owned or controlled by
persons a majority of whom are United States citizens.

SEC. 279. GLOBAL POSITIONING SYSTEM.

(a) Conditional Prohibition on Use of Selective
Availability Feature.--Except as provided in subsection (b),
after May 1, 1996, the Secretary of Defense may not (through
use of the feature known as ``selective availability'') deny
access of non-Department of Defense users to the full
capabilities of the Global Positioning System.
(b) Plan.--Subsection (a) shall cease to apply upon
submission by the Secretary of Defense to the Committee on
Armed Services of the Senate and the Committee on National
Security of the House of Representatives of a plan for
enhancement of the Global Positioning System that provides
for--
(1) development and acquisition of effective capabilities
to deny hostile military forces the ability to use the Global
Positioning System without hindering the ability of United
States military forces and civil users to have access to and
use of the system, together with a specific date by which
those capabilities could be operational; and
(2) development and acquisition of receivers for the Global
Positioning System and other techniques for weapons and
weapon systems that provide substantially improved resistance
to jamming and other forms of electronic interference or
disruption, together with a specific date by which those
receivers and other techniques could be operational with
United States military forces.

SEC. 280. REVISION OF AUTHORITY FOR PROVIDING ARMY SUPPORT
FOR THE NATIONAL SCIENCE CENTER FOR
COMMUNICATIONS AND ELECTRONICS.

(a) Purpose.--Subsection (b)(2) of section 1459 of the
Department of Defense Authorization Act, 1986 (Public Law 99-
145; 99 Stat. 763) is amended by striking out ``to make
available'' and all that follows and inserting in lieu
thereof ``to provide for the management, operation, and
maintenance of those areas in the national science center
that are designated for use by the Army and to provide
incidental support for the operation of those areas in the
center that are designated for general use.''.
(b) Authority for Support.--Subsection (c) of such section
is amended to read as follows:
``(c) National Science Center.--(1) The Secretary may
manage, operate, and maintain facilities at the center under
terms and conditions prescribed by the Secretary for the
purpose of conducting educational outreach programs in
accordance with chapter 111 of title 10, United States Code.
``(2) The Foundation, or NSC Discovery Center,
Incorporated, a nonprofit corporation of the State of
Georgia, shall submit to the Secretary for review and
approval all matters pertaining to the acquisition, design,
renovation, equipping, and furnishing of the center,
including all plans, specifications, contracts, sites, and
materials for the center.''.
(c) Authority for Acceptance of Gifts and Fundraising.--
Subsection (d) of such section is amended to read as follows:
``(d) Gifts and Fundraising.--(1) Subject to paragraph (3),
the Secretary may accept a conditional or unconditional
donation of money or property that is made for the benefit
of, or in connection with, the center.
``(2) Notwithstanding any other provision of law, the
Secretary may endorse, promote, and assist the efforts of the
Foundation and NSC Discovery Center, Incorporated, to
obtain--
``(A) funds for the management, operation, and maintenance
of the center; and
``(B) donations of exhibits, equipment, and other property
for use in the center.

[[Page H370]]

``(3) The Secretary may not accept a donation under this
subsection that is made subject to--
``(A) any condition that is inconsistent with an applicable
law or regulation; or
``(B) except to the extent provided in appropriations Acts,
any condition that would necessitate an expenditure of
appropriated funds.
``(4) The Secretary shall prescribe in regulations the
criteria to be used in determining whether to accept a
donation. The Secretary shall include criteria to ensure that
acceptance of a donation does not establish an unfavorable
appearance regarding the fairness and objectivity with which
the Secretary or any other officer or employee of the
Department of Defense performs official responsibilities and
does not compromise or appear to compromise the integrity of
a Government program or any official involved in that
program.''.
(d) Authorized Uses.--Such section is amended--
(1) by striking out subsection (f);
(2) by redesignating subsection (g) as subsection (f); and
(3) in paragraph (1) of subsection (f), as redesignated by
paragraph (2), by inserting ``areas designated for use by the
Army in'' after ``The Secretary may make''.
(e) Alternative of Additional Development and Management.--
Such section, as amended by subsection (d), is further
amended by adding at the end the following:
``(g) Alternative or Additional Development and Management
of the Center.--(1) The Secretary may enter into an agreement
with NSC Discovery Center, Incorporated, to develop, manage,
and maintain a national science center under this section. In
entering into an agreement with NSC Discovery Center,
Incorporated, the Secretary may agree to any term or
condition to which the Secretary is authorized under this
section to agree for purposes of entering into an agreement
with the Foundation.
``(2) The Secretary may exercise the authority under
paragraph (1) in addition to, or instead of, exercising the
authority provided under this section to enter into an
agreement with the Foundation.''.
TITLE III--OPERATION AND MAINTENANCE
Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

Funds are hereby authorized to be appropriated for fiscal
year 1996 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for
expenses, not otherwise provided for, for operation and
maintenance, in amounts as follows:
(1) For the Army, $18,746,695,000.
(2) For the Navy, $21,493,155,000.
(3) For the Marine Corps, $2,521,822,000.
(4) For the Air Force, $18,719,277,000.
(5) For Defense-wide activities, $9,910,476,000.
(6) For the Army Reserve, $1,129,191,000.
(7) For the Naval Reserve, $868,342,000.
(8) For the Marine Corps Reserve, $100,283,000.
(9) For the Air Force Reserve, $1,516,287,000.
(10) For the Army National Guard, $2,361,808,000.
(11) For the Air National Guard, $2,760,121,000.
(12) For the Defense Inspector General, $138,226,000.
(13) For the United States Court of Appeals for the Armed
Forces, $6,521,000.
(14) For Environmental Restoration, Defense,
$1,422,200,000.
(15) For Drug Interdiction and Counter-drug Activities,
Defense-wide, $680,432,000.
(16) For Medical Programs, Defense, $9,876,525,000.
(17) For support for the 1996 Summer Olympics, $15,000,000.
(18) For Cooperative Threat Reduction programs,
$300,000,000.
(19) For Overseas Humanitarian, Disaster, and Civic Aid
programs, $50,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

Funds are hereby authorized to be appropriated for fiscal
year 1996 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for
providing capital for working capital and revolving funds in
amounts as follows:
(1) For the Defense Business Operations Fund, $878,700,000.
(2) For the National Defense Sealift Fund, $1,024,220,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

There is hereby authorized to be appropriated for fiscal
year 1996 from the Armed Forces Retirement Home Trust Fund
the sum of $59,120,000 for the operation of the Armed Forces
Retirement Home, including the United States Soldiers' and
Airmen's Home and the Naval Home.

SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE
TRANSACTION FUND.

(a) Transfer Authority.--To the extent provided in
appropriations Acts, not more than $150,000,000 is authorized
to be transferred from the National Defense Stockpile
Transaction Fund to operation and maintenance accounts for
fiscal year 1996 in amounts as follows:
(1) For the Army, $50,000,000.
(2) For the Navy, $50,000,000.
(3) For the Air Force, $50,000,000.
(b) Treatment of Transfers.--Amounts transferred under this
section--
(1) shall be merged with, and be available for the same
purposes and the same period as, the amounts in the accounts
to which transferred; and
(2) may not be expended for an item that has been denied
authorization of appropriations by Congress.
(c) Relationship to Other Transfer Authority.--The transfer
authority provided in this section is in addition to the
transfer authority provided in section 1001.

SEC. 305. CIVIL AIR PATROL.

Of the amounts authorized to be appropriated pursuant to
this Act, there shall be made available to the Civil Air
Patrol $24,500,000, of which $14,704,000 shall be made
available for the Civil Air Patrol Corporation.
Subtitle B--Depot-Level Activities

SEC. 311. POLICY REGARDING PERFORMANCE OF DEPOT-LEVEL
MAINTENANCE AND REPAIR FOR THE DEPARTMENT OF
DEFENSE.

(a) Findings.--Congress makes the following findings:
(1) The Department of Defense does not have a comprehensive
policy regarding the performance of depot-level maintenance
and repair of military equipment.
(2) The absence of such a policy has caused the Congress to
establish guidelines for the performance of such functions.
(3) It is essential to the national security of the United
States that the Department of Defense maintain an organic
capability within the department, including skilled
personnel, technical competencies, equipment, and facilities,
to perform depot-level maintenance and repair of military
equipment in order to ensure that the Armed Forces of the
United States are able to meet training, operational,
mobilization, and emergency requirements without impediment.
(4) The organic capability of the Department of Defense to
perform depot-level maintenance and repair of military
equipment must satisfy known and anticipated core maintenance
and repair requirements across the full range of peacetime
and wartime scenarios.
(5) Although it is possible that savings can be achieved by
contracting with private-sector sources for the performance
of some work currently performed by Department of Defense
depots, the Department of Defense has not determined the type
or amount of work that should be performed under contract
with private-sector sources nor the relative costs and
benefits of contracting for the performance of such work by
those sources.
(b) Sense of Congress.--It is the sense of Congress that
there is a compelling need for the Department of Defense to
articulate known and anticipated core maintenance and repair
requirements, to organize the resources of the Department of
Defense to meet those requirements economically and
efficiently, and to determine what work should be performed
by the private sector and how such work should be managed.
(c) Requirement for Policy.--Not later than March 31, 1996,
the Secretary of Defense shall develop and report to the
Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives a
comprehensive policy on the performance of depot-level
maintenance and repair for the Department of Defense that
maintains the capability described in section 2464 of title
10, United States Code.
(d) Content of Policy.--In developing the policy, the
Secretary of Defense shall do each of the following:
(1) Identify for each military department, with the
concurrence of the Secretary of that military department,
those depot-level maintenance and repair activities that are
necessary to ensure the depot-level maintenance and repair
capability as required by section 2464 of title 10, United
States Code.
(2) Provide for performance of core depot-level maintenance
and repair capabilities in facilities owned and operated by
the United States.
(3) Provide for the core capabilities to include sufficient
skilled personnel, equipment, and facilities that--
(A) is of the proper size (i) to ensure a ready and
controlled source of technical competence and repair and
maintenance capability necessary to meet the requirements of
the National Military Strategy and other requirements for
responding to mobilizations and military contingencies, and
(ii) to provide for rapid augmentation in time of emergency;
and
(B) is assigned sufficient workload to ensure cost
efficiency and technical proficiency in time of peace.
(4) Address environmental liability.
(5) In the case of depot-level maintenance and repair
workloads in excess of the workload required to be performed
by Department of Defense depots, provide for competition for
those workloads between public and private entities when
there is sufficient potential for realizing cost savings
based on adequate private-sector competition and technical
capabilities.
(6) Address issues concerning exchange of technical data
between the Federal Government and the private sector.
(7) Provide for, in the Secretary's discretion and after
consultation with the Secretaries of the military
departments, the transfer from one military department to
another, in accordance with merit-based selection processes,
workload that supports the core depot-level maintenance and
repair capabilities in facilities owned and operated by the
United States.

[[Page H371]]

(8) Require that, in any competition for a workload
(whether among private-sector sources or between depot-level
activities of the Department of Defense and private-sector
sources), bids are evaluated under a methodology that ensures
that appropriate costs to the Government and the private
sector are identified.
(9) Provide for the performance of maintenance and repair
for any new weapons systems defined as core, under section
2464 of title 10, United States Code, in facilities owned and
operated by the United States.
(e) Considerations.--In developing the policy, the
Secretary shall take into consideration the following
matters:
(1) The national security interests of the United States.
(2) The capabilities of the public depots and the
capabilities of businesses in the private sector to perform
the maintenance and repair work required by the Department of
Defense.
(3) Any applicable recommendations of the Defense Base
Closure and Realignment Commission that are required to be
implemented under the Defense Base Closure and Realignment
Act of 1990.
(4) The extent to which the readiness of the Armed Forces
would be affected by a necessity to construct new facilities
to accommodate any redistribution of depot-level maintenance
and repair workloads that is made in accordance with the
recommendation of the Defense Base Closure and Realignment
Commission, under the Defense Base Closure and Realignment
Act of 1990, that such workloads be consolidated at
Department of Defense depots or private-sector facilities.
(5) Analyses of costs and benefits of alternatives,
including a comparative analysis of--
(A) the costs and benefits, including any readiness
implications, of any proposed policy to convert to contractor
performance of depot-level maintenance and repair workloads
where the workload is being performed by Department of
Defense personnel; and
(B) the costs and benefits, including any readiness
implications, of a policy to transfer depot-level maintenance
and repair workloads among depots.
(f) Repeal of 60/40 Requirement and Requirement Relating to
Competition.--(1) Sections 2466 and 2469 of title 10, United
States Code, are repealed.
(2) The table of sections at the beginning of chapter 146
of such title is amended by striking out the items relating
to sections 2466 and 2469.
(3) The amendments made by paragraphs (1) and (2) shall
take effect on the date (after the date of the enactment of
this Act) on which legislation is enacted that contains a
provision that specifically states one of the following:
(A) ``The policy on the performance of depot-level
maintenance and repair for the Department of Defense that was
submitted by the Secretary of Defense to the Committee on
Armed Services of the Senate and the Committee on National
Security of the House of Representatives pursuant to section
311 of the National Defense Authorization Act for Fiscal Year
1996 is approved.''; or
(B) ``The policy on the performance of depot-level
maintenance and repair for the Department of Defense that was
submitted by the Secretary of Defense to the Committee on
Armed Services of the Senate and the Committee on National
Security of the House of Representatives pursuant to section
311 of the National Defense Authorization Act for Fiscal Year
1996 is approved with the following modifications:'' (with
the modifications being stated in matter appearing after the
colon).
(g) Annual Report.--If legislation referred to in
subsection (f)(3) is enacted, the Secretary of Defense shall,
not later than March 1 of each year (beginning with the year
after the year in which such legislation is enacted), submit
to Congress a report that--
(1) specifies depot maintenance core capability
requirements determined in accordance with the procedures
established to comply with the policy prescribed pursuant to
subsections (d)(2) and (d)(3);
(2) specifies the planned amount of workload to be
accomplished by the depot-level activities of each military
department in support of those requirements for the following
fiscal year; and
(3) identifies the planned amount of workload, which--
(A) shall be measured by direct labor hours and by amounts
to be expended; and
(B) shall be shown separately for each commodity group.
(h) Review by General Accounting Office.--(1) The Secretary
shall make available to the Comptroller General of the United
States all information used by the Department of Defense in
developing the policy under subsections (c) through (e) of
this section.
(2) Not later than 45 days after the date on which the
Secretary submits to Congress the report required by
subsection (c), the Comptroller General shall transmit to
Congress a report containing a detailed analysis of the
Secretary's proposed policy as reported under such
subsection.
(i) Report on Depot-Level Maintenance and Repair
Workload.--Not later than March 31, 1996, the Secretary of
Defense shall submit to Congress a report on the depot-level
maintenance and repair workload of the Department of Defense.
The report shall, to the maximum extent practicable, include
the following:
(1) An analysis of the need for and effect of the
requirement under section 2466 of title 10, United States
Code, that no more than 40 percent of the depot-level
maintenance and repair work of the Department of Defense be
contracted for performance by non-Government personnel,
including a description of the effect on military readiness
and the national security resulting from that requirement and
a description of any specific difficulties experienced by the
Department of Defense as a result of that requirement.
(2) An analysis of the distribution during the five fiscal
years ending with fiscal year 1995 of the depot-level
maintenance and repair workload of the Department of Defense
between depot-level activities of the Department of Defense
and non-Government personnel, measured by direct labor hours
and by amounts expended, and displayed, for that five-year
period and for each year of that period, so as to show (for
each military department (and separately for the Navy and
Marine Corps)) such distribution.
(3) A projection of the distribution during the five fiscal
years beginning with fiscal year 1997 of the depot-level
maintenance and repair workload of the Department of Defense
between depot-level activities of the Department of Defense
and non-Government personnel, measured by direct labor hours
and by amounts expended, and displayed, for that five-year
period and for each year of that period, so as to show (for
each military department (and separately for the Navy and
Marine Corps)) such distribution that would be accomplished
under a new policy as required under subsection (c).
(j) Other Review by General Accounting Office.--(1) The
Comptroller General of the United States shall conduct an
independent audit of the findings of the Secretary of Defense
in the report under subsection (i). The Secretary of Defense
shall provide to the Comptroller General for such purpose all
information used by the Secretary in preparing such report.
(2) Not later than 45 days after the date on which the
Secretary of Defense submits to Congress the report required
under subsection (i), the Comptroller General shall transmit
to Congress a report containing a detailed analysis of the
report submitted under that subsection.

SEC. 312. MANAGEMENT OF DEPOT EMPLOYEES.

(a) Depot Employees.--Chapter 146 of title 10, United
States Code, is amended by adding at the end the following
new section:

``Sec. 2472. Management of depot employees

``(b) Annual Report.--Not later than December 1 of each
fiscal year, the Secretary of Defense shall submit to the
Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives a report
on the number of employees employed and expected to be
employed by the Department of Defense during that fiscal year
to perform depot-level maintenance and repair of materiel.
The report shall indicate whether that number is sufficient
to perform the depot-level maintenance and repair functions
for which funds are expected to be provided for that fiscal
year for performance by Department of Defense employees.''.
(b) Transfer of Subsection.--Subsection (b) of section 2466
of title 10, United States Code, is transferred to section
2472 of such title, as added by subsection (a), redesignated
as subsection (a), and inserted after the section heading.
(c) Submission of Initial Report.--The report under
subsection (b) of section 2472 of title 10, United States
Code, as added by subsection (a), for fiscal year 1996 shall
be submitted not later than March 15, 1996 (notwithstanding
the date specified in such subsection).
(d) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2472. Management of depot employees.''.

SEC. 313. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND
NAVAL SHIPYARDS TO ENGAGE IN DEFENSE-RELATED
PRODUCTION AND SERVICES.

Section 1425(e) of the National Defense Authorization Act
for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1684) is
amended by striking out ``September 30, 1995'' and inserting
in lieu thereof ``September 30, 1996''.

SEC. 314. MODIFICATION OF NOTIFICATION REQUIREMENT REGARDING
USE OF CORE LOGISTICS FUNCTIONS WAIVER.

Section 2464(b) of title 10, United States Code, is amended
by striking out paragraphs (3) and (4) and inserting in lieu
thereof the following new paragraph:
``(3) A waiver under paragraph (2) may not take effect
until the end of the 30-day period beginning on the date on
which the Secretary submits a report on the waiver to the
Committee on Armed Services and the Committee on
Appropriations of the Senate and the Committee on National
Security and the Committee on Appropriations of the House of
Representatives.''.
Subtitle C--Environmental Provisions

SEC. 321. REVISION OF REQUIREMENTS FOR AGREEMENTS FOR
SERVICES UNDER ENVIRONMENTAL RESTORATION
PROGRAM.

(a) Requirements.--(1) Section 2701(d) of title 10, United
States Code, is amended to read as follows:
``(d) Services of Other Agencies.--
``(1) In general.--Subject to paragraph (2), the Secretary
may enter into agreements on a reimbursable or other basis
with any other

[[Page H372]]
Federal agency, or with any State or local government agency, to obtain
the services of the agency to assist the Secretary in
carrying out any of the Secretary's responsibilities under
this section. Services which may be obtained under this
subsection include the identification, investigation, and
cleanup of any off-site contamination resulting from the
release of a hazardous substance or waste at a facility under
the Secretary's jurisdiction.
``(2) Limitation on reimbursable agreements.--An agreement
with an agency under paragraph (1) may not provide for
reimbursement of the agency for regulatory enforcement
activities.''.
(2)(A) Except as provided in subparagraph (B), the total
amount of funds available for reimbursements under agreements
entered into under section 2710(d) of title 10, United States
Code, as amended by paragraph (1), in fiscal year 1996 may
not exceed $10,000,000.
(B) The Secretary of Defense may pay in fiscal year 1996 an
amount for reimbursements under agreements referred to in
subparagraph (A) in excess of the amount specified in that
subparagraph for that fiscal year if--
(i) the Secretary certifies to Congress that the payment of
the amount under this subparagraph is essential for the
management of the Defense Environmental Restoration Program
under chapter 160 of title 10, United States Code; and
(ii) a period of 60 days has expired after the date on
which the certification is received by Congress.
(b) Report on Services Obtained.--The Secretary of Defense
shall include in the report submitted to Congress with
respect to fiscal year 1998 under section 2706(a) of title
10, United States Code, information on the services, if any,
obtained by the Secretary during fiscal year 1996 pursuant to
each agreement on a reimbursable basis entered into with a
State or local government agency under section 2701(d) of
title 10, United States Code, as amended by subsection (a).
The information shall include a description of the services
obtained under each agreement and the amount of the
reimbursement provided for the services.

SEC. 322. ADDITION OF AMOUNTS CREDITABLE TO DEFENSE
ENVIRONMENTAL RESTORATION ACCOUNT.

Section 2703(e) of title 10, United States Code, is amended
to read as follows:
``(e) Amounts Recovered.--The following amounts shall be
credited to the transfer account:
``(1) Amounts recovered under CERCLA for response actions
of the Secretary.
``(2) Any other amounts recovered by the Secretary or the
Secretary of the military department concerned from a
contractor, insurer, surety, or other person to reimburse the
Department of Defense for any expenditure for environmental
response activities.''.

SEC. 323. USE OF DEFENSE ENVIRONMENTAL RESTORATION ACCOUNT.

(a) Goal for Certain DERA Expenditures.--It shall be the
goal of the Secretary of Defense to limit, by the end of
fiscal year 1997, spending for administration, support,
studies, and investigations associated with the Defense
Environmental Restoration Account to 20 percent of the total
funding for that account.
(b) Report.--Not later than April 1, 1996, the Secretary
shall submit to Congress a report that contains specific,
detailed information on--
(1) the extent to which the Secretary has attained the goal
described in subsection (a) as of the date of the submission
of the report; and
(2) if the Secretary has not attained such goal by such
date, the actions the Secretary plans to take to attain the
goal.

SEC. 324. REVISION OF AUTHORITIES RELATING TO RESTORATION
ADVISORY BOARDS.

(a) Regulations.--Paragraph (2) of subsection (d) of
section 2705 of title 10, United States Code, is amended to
read as follows:
``(2)(A) The Secretary shall prescribe regulations
regarding the establishment, characteristics, composition,
and funding of restoration advisory boards pursuant to this
subsection.
``(B) The issuance of regulations under subparagraph (A)
shall not be a precondition to the establishment of
restoration advisory boards under this subsection.''.
(b) Funding for Administrative Expenses.--Paragraph (3) of
such subsection is amended to read as follows:
``(3) The Secretary may authorize the commander of an
installation (or, if there is no such commander, an
appropriate official of the Department of Defense designated
by the Secretary) to pay routine administrative expenses of a
restoration advisory board established for that installation.
Such payments shall be made from funds available under
subsection (g).''.
(c) Technical Assistance.--Such section is further amended
by striking out subsection (e) and inserting in lieu thereof
the following new subsection (e):
``(e) Technical Assistance.--(1) The Secretary may, upon
the request of the technical review committee or restoration
advisory board for an installation, authorize the commander
of the installation (or, if there is no such commander, an
appropriate official of the Department of Defense designated
by the Secretary) to obtain for the committee or advisory
board, as the case may be, from private sector sources
technical assistance for interpreting scientific and
engineering issues with regard to the nature of environmental
hazards at the installation and the restoration activities
conducted, or proposed to be conducted, at the installation.
The commander of an installation (or, if there is no such
commander, an appropriate official of the Department of
Defense designated by the Secretary) shall use funds made
available under subsection (g) for obtaining assistance under
this paragraph.
``(2) The commander of an installation (or, if there is no
such commander, an appropriate official of the Department of
Defense designated by the Secretary) may obtain technical
assistance under paragraph (1) for a technical review
committee or restoration advisory board only if--
``(A) the technical review committee or restoration
advisory board demonstrates that the Federal, State, and
local agencies responsible for overseeing environmental
restoration at the installation, and available Department of
Defense personnel, do not have the technical expertise
necessary for achieving the objective for which the technical
assistance is to be obtained; or
``(B) the technical assistance--
``(i) is likely to contribute to the efficiency,
effectiveness, or timeliness of environmental restoration
activities at the installation; and
``(ii) is likely to contribute to community acceptance of
environmental restoration activities at the installation.''.
(d) Funding.--(1) Such section is further amended by adding
at the end the following new subsection:
``(g) Funding.--The Secretary shall, to the extent provided
in appropriations Acts, make funds available for
administrative expenses and technical assistance under this
section using funds in the following accounts:
``(1) In the case of a military installation not approved
for closure pursuant to a base closure law, the Defense
Environmental Restoration Account established under section
2703(a) of this title.
``(2) In the case of an installation approved for closure
pursuant to such a law, the Department of Defense Base
Closure Account 1990 established under section 2906(a) of the
Defense Base Closure and Realignment Act of 1990 (part A of
title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).''.
(2)(A) Subject to subparagraph (B), the total amount of
funds made available under section 2705(g) of title 10,
United States Code, as added by paragraph (1), for fiscal
year 1996 may not exceed $6,000,000.
(B) Amounts may not be made available under subsection (g)
of such section 2705 after September 15, 1996, unless the
Secretary of Defense publishes proposed final or interim
final regulations required under subsection (d) of such
section, as amended by subsection (a).
(e) Definition.--Such section is further amended by adding
after subsection (g) (as added by subsection (d)) the
following new subsection:
``(h) Definition.--In this section, the term `base closure
law' means the following:
``(1) Title II of the Defense Authorization Amendments and
Base Closure and Realignment Act (Public Law 100-526; 10
U.S.C. 2687 note).
``(2) The Defense Base Closure and Realignment Act of 1990
(part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
note).
``(3) Section 2687 of this title.''.
(f) Reports on Activities of Technical Review Committees
and Restoration Advisory Boards.--Section 2706(a)(2) of title
10, United States Code, is amended by adding at the end the
following:
``(J) A statement of the activities, if any, including
expenditures for administrative expenses and technical
assistance under section 2705 of this title, of the technical
review committee or restoration advisory board established
for the installation under such section during the preceding
fiscal year.''.

SEC. 325. DISCHARGES FROM VESSELS OF THE ARMED FORCES.

(a) Purposes.--The purposes of this section are to--
(1) enhance the operational flexibility of vessels of the
Armed Forces domestically and internationally;
(2) stimulate the development of innovative vessel
pollution control technology; and
(3) advance the development by the United States Navy of
environmentally sound ships.
(b) Uniform National Discharge Standards Development.--
Section 312 of the Federal Water Pollution Control Act (33
U.S.C. 1322) is amended by adding at the end the following:
``(n) Uniform National Discharge Standards for Vessels of
the Armed Forces.--
``(1) Applicability.--This subsection shall apply to
vessels of the Armed Forces and discharges, other than
sewage, incidental to the normal operation of a vessel of the
Armed Forces, unless the Secretary of Defense finds that
compliance with this subsection would not be in the national
security interests of the United States.
``(2) Determination of discharges required to be controlled
by marine pollution control devices.--
``(A) In general.--The Administrator and the Secretary of
Defense, after consultation with the Secretary of the
department in which the Coast Guard is operating, the
Secretary of Commerce, and interested States, shall jointly
determine the discharges incidental to the normal operation
of a vessel of the Armed Forces for which it is reasonable
and practicable to require use of a marine pollution control
device to mitigate adverse impacts on the marine environment.
Notwithstanding subsection (a)(1) of section 553

[[Page H373]]
of title 5, United States Code, the Administrator and the Secretary of
Defense shall promulgate the determinations in accordance
with such section. The Secretary of Defense shall require the
use of a marine pollution control device on board a vessel of
the Armed Forces in any case in which it is determined that
the use of such a device is reasonable and practicable.
``(B) Considerations.--In making a determination under
subparagraph (A), the Administrator and the Secretary of
Defense shall take into consideration--
``(i) the nature of the discharge;
``(ii) the environmental effects of the discharge;
``(iii) the practicability of using the marine pollution
control device;
``(iv) the effect that installation or use of the marine
pollution control device would have on the operation or
operational capability of the vessel;
``(v) applicable United States law;
``(vi) applicable international standards; and
``(vii) the economic costs of the installation and use of
the marine pollution control device.
``(3) Performance standards for marine pollution control
devices.--
``(A) In general.--For each discharge for which a marine
pollution control device is determined to be required under
paragraph (2), the Administrator and the Secretary of
Defense, in consultation with the Secretary of the department
in which the Coast Guard is operating, the Secretary of
State, the Secretary of Commerce, other interested Federal
agencies, and interested States, shall jointly promulgate
Federal standards of performance for each marine pollution
control device required with respect to the discharge.
Notwithstanding subsection (a)(1) of section 553 of title 5,
United States Code, the Administrator and the Secretary of
Defense shall promulgate the standards in accordance with
such section.
``(B) Considerations.--In promulgating standards under this
paragraph, the Administrator and the Secretary of Defense
shall take into consideration the matters set forth in
paragraph (2)(B).
``(C) Classes, types, and sizes of vessels.--The standards
promulgated under this paragraph may--
``(i) distinguish among classes, types, and sizes of
vessels;
``(ii) distinguish between new and existing vessels; and
``(iii) provide for a waiver of the applicability of the
standards as necessary or appropriate to a particular class,
type, age, or size of vessel.
``(4) Regulations for use of marine pollution control
devices.--The Secretary of Defense, after consultation with
the Administrator and the Secretary of the department in
which the Coast Guard is operating, shall promulgate such
regulations governing the design, construction, installation,
and use of marine pollution control devices on board vessels
of the Armed Forces as are necessary to achieve the standards
promulgated under paragraph (3).
``(5) Deadlines; effective date.--
``(A) Determinations.--The Administrator and the Secretary
of Defense shall--
``(i) make the initial determinations under paragraph (2)
not later than 2 years after the date of the enactment of
this subsection; and
``(ii) every 5 years--

``(I) review the determinations; and
``(II) if necessary, revise the determinations based on
significant new information.

``(B) Standards.--The Administrator and the Secretary of
Defense shall--
``(i) promulgate standards of performance for a marine
pollution control device under paragraph (3) not later than 2
years after the date of a determination under paragraph (2)
that the marine pollution control device is required; and
``(ii) every 5 years--

``(I) review the standards; and
``(II) if necessary, revise the standards, consistent with
paragraph (3)(B) and based on significant new information.

``(C) Regulations.--The Secretary of Defense shall
promulgate regulations with respect to a marine pollution
control device under paragraph (4) as soon as practicable
after the Administrator and the Secretary of Defense
promulgate standards with respect to the device under
paragraph (3), but not later than 1 year after the
Administrator and the Secretary of Defense promulgate the
standards. The regulations promulgated by the Secretary of
Defense under paragraph (4) shall become effective upon
promulgation unless another effective date is specified in
the regulations.
``(D) Petition for review.--The Governor of any State may
submit a petition requesting that the Secretary of Defense
and the Administrator review a determination under paragraph
(2) or a standard under paragraph (3), if there is
significant new information, not considered previously, that
could reasonably result in a change to the particular
determination or standard after consideration of the matters
set forth in paragraph (2)(B). The petition shall be
accompanied by the scientific and technical information on
which the petition is based. The Administrator and the
Secretary of Defense shall grant or deny the petition not
later than 2 years after the date of receipt of the petition.
``(6) Effect on other laws.--
``(A) Prohibition on regulation by states or political
subdivisions of states.--Beginning on the effective date of--
``(i) a determination under paragraph (2) that it is not
reasonable and practicable to require use of a marine
pollution control device regarding a particular discharge
incidental to the normal operation of a vessel of the Armed
Forces; or
``(ii) regulations promulgated by the Secretary of Defense
under paragraph (4);
except as provided in paragraph (7), neither a State nor a
political subdivision of a State may adopt or enforce any
statute or regulation of the State or political subdivision
with respect to the discharge or the design, construction,
installation, or use of any marine pollution control device
required to control discharges from a vessel of the Armed
Forces.
``(B) Federal laws.--This subsection shall not affect the
application of section 311 to discharges incidental to the
normal operation of a vessel.
``(7) Establishment of state no-discharge zones.--
``(A) State prohibition.--
``(i) In general.--After the effective date of--

``(I) a determination under paragraph (2) that it is not
reasonable and practicable to require use of a marine
pollution control device regarding a particular discharge
incidental to the normal operation of a vessel of the Armed
Forces; or
``(II) regulations promulgated by the Secretary of Defense
under paragraph (4);

if a State determines that the protection and enhancement of
the quality of some or all of the waters within the State
require greater environmental protection, the State may
prohibit 1 or more discharges incidental to the normal
operation of a vessel, whether treated or not treated, into
the waters. No prohibition shall apply until the
Administrator makes the determinations described in
subclauses (II) and (III) of subparagraph (B)(i).
``(ii) Documentation.--To the extent that a prohibition
under this paragraph would apply to vessels of the Armed
Forces and not to other types of vessels, the State shall
document the technical or environmental basis for the
distinction.
``(B) Prohibition by the administrator.--
``(i) In general.--Upon application of a State, the
Administrator shall by regulation prohibit the discharge from
a vessel of 1 or more discharges incidental to the normal
operation of a vessel, whether treated or not treated, into
the waters covered by the application if the Administrator
determines that--

``(I) the protection and enhancement of the quality of the
specified waters within the State require a prohibition of
the discharge into the waters;
``(II) adequate facilities for the safe and sanitary
removal of the discharge incidental to the normal operation
of a vessel are reasonably available for the waters to which
the prohibition would apply; and
``(III) the prohibition will not have the effect of
discriminating against a vessel of the Armed Forces by reason
of the ownership or operation by the Federal Government, or
the military function, of the vessel.

``(ii) Approval or disapproval.--The Administrator shall
approve or disapprove an application submitted under clause
(i) not later than 90 days after the date on which the
application is submitted to the Administrator.
Notwithstanding clause (i)(II), the Administrator shall not
disapprove an application for the sole reason that there are
not adequate facilities to remove any discharge incidental to
the normal operation of a vessel from vessels of the Armed
Forces.
``(C) Applicability to foreign flagged vessels.--A
prohibition under this paragraph--
``(i) shall not impose any design, construction, manning,
or equipment standard on a foreign flagged vessel engaged in
innocent passage unless the prohibition implements a
generally accepted international rule or standard; and
``(ii) that relates to the prevention, reduction, and
control of pollution shall not apply to a foreign flagged
vessel engaged in transit passage unless the prohibition
implements an applicable international regulation regarding
the discharge of oil, oily waste, or any other noxious
substance into the waters.
``(8) Prohibition relating to vessels of the armed
forces.--After the effective date of the regulations
promulgated by the Secretary of Defense under paragraph (4),
it shall be unlawful for any vessel of the Armed Forces
subject to the regulations to--
``(A) operate in the navigable waters of the United States
or the waters of the contiguous zone, if the vessel is not
equipped with any required marine pollution control device
meeting standards established under this subsection; or
``(B) discharge overboard any discharge incidental to the
normal operation of a vessel in waters with respect to which
a prohibition on the discharge has been established under
paragraph (7).
``(9) Enforcement.--This subsection shall be enforceable,
as provided in subsections (j) and (k), against any agency of
the United States responsible for vessels of the Armed Forces
notwithstanding any immunity asserted by the agency.''.
(c) Conforming Amendments.--
(1) Definitions.--Section 312(a) of the Federal Water
Pollution Control Act (33 U.S.C. 1322(a)) is amended--
(A) in paragraph (8)--
(i) by striking ``or''; and

[[Page H374]]

(ii) by inserting ``or agency of the United States,'' after
``association,'';
(B) in paragraph (11), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following:
``(12) `discharge incidental to the normal operation of a
vessel'--
``(A) means a discharge, including--
``(i) graywater, bilge water, cooling water, weather deck
runoff, ballast water, oil water separator effluent, and any
other pollutant discharge from the operation of a marine
propulsion system, shipboard maneuvering system, crew
habitability system, or installed major equipment, such as an
aircraft carrier elevator or a catapult, or from a
protective, preservative, or absorptive application to the
hull of the vessel; and
``(ii) a discharge in connection with the testing,
maintenance, and repair of a system described in clause (i)
whenever the vessel is waterborne; and
``(B) does not include--
``(i) a discharge of rubbish, trash, garbage, or other such
material discharged overboard;
``(ii) an air emission resulting from the operation of a
vessel propulsion system, motor driven equipment, or
incinerator; or
``(iii) a discharge that is not covered by part 122.3 of
title 40, Code of Federal Regulations (as in effect on the
date of the enactment of subsection (n));
``(13) `marine pollution control device' means any
equipment or management practice, for installation or use on
board a vessel of the Armed Forces, that is--
``(A) designed to receive, retain, treat, control, or
discharge a discharge incidental to the normal operation of a
vessel; and
``(B) determined by the Administrator and the Secretary of
Defense to be the most effective equipment or management
practice to reduce the environmental impacts of the discharge
consistent with the considerations set forth in subsection
(n)(2)(B); and
``(14) `vessel of the Armed Forces' means--
``(A) any vessel owned or operated by the Department of
Defense, other than a time or voyage chartered vessel; and
``(B) any vessel owned or operated by the Department of
Transportation that is designated by the Secretary of the
department in which the Coast Guard is operating as a vessel
equivalent to a vessel described in subparagraph (A).''.
(2) Enforcement.--The first sentence of section 312(j) of
the Federal Water Pollution Control Act (33 U.S.C. 1322(j))
is amended--
(A) by striking ``of this section or'' and inserting a
comma; and
(B) by striking ``of this section shall'' and inserting ``,
or subsection (n)(8) shall''.
(3) Other definitions.--Subparagraph (A) of the second
sentence of section 502(6) of the Federal Water Pollution
Control Act (33 U.S.C. 1362(6)) is amended by striking ``
`sewage from vessels' '' and inserting `` `sewage from
vessels or a discharge incidental to the normal operation of
a vessel of the Armed Forces' ''.
(d) Cooperation in Standards Development.--The
Administrator of the Environmental Protection Agency and the
Secretary of Defense may, by mutual agreement, with or
without reimbursement, provide for the use of information,
reports, personnel, or other resources of the Environmental
Protection Agency or the Department of Defense to carry out
section 312(n) of the Federal Water Pollution Control Act (as
added by subsection (b)), including the use of the
resources--
(1) to determine--
(A) the nature and environmental effect of discharges
incidental to the normal operation of a vessel of the Armed
Forces;
(B) the practicability of using marine pollution control
devices on vessels of the Armed Forces; and
(C) the effect that installation or use of marine pollution
control devices on vessels of the Armed Forces would have on
the operation or operational capability of the vessels; and
(2) to establish performance standards for marine pollution
control devices on vessels of the Armed Forces.
Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 331. OPERATION OF COMMISSARY SYSTEM.

(a) Cooperation With Other Entities.--Section 2482 of title
10, United States Code, is amended--
(1) in the section heading, by striking out ``private'';
(2) by inserting ``(a) Private Operation.--'' before
``Private persons''; and
(3) by adding at the end the following new subsection:
``(b) Contracts With Other Agencies and
Instrumentalities.--(1) The Defense Commissary Agency, and
any other agency of the Department of Defense that supports
the operation of the commissary system, may enter into a
contract or other agreement with another department, agency,
or instrumentality of the Department of Defense or another
Federal agency to provide services beneficial to the
efficient management and operation of the commissary system.
``(2) A commissary store operated by a nonappropriated fund
instrumentality of the Department of Defense shall be
operated in accordance with section 2484 of this title.
Subject to such section, the Secretary of Defense may
authorize a transfer of goods, supplies, and facilities of,
and funds appropriated for, the Defense Commissary Agency or
any other agency of the Department of Defense that supports
the operation of the commissary system to a nonappropriated
fund instrumentality for the operation of a commissary
store.''.
(b) Clerical Amendment.--The item relating to such section
in the table of sections at the beginning of chapter 147 of
such title is amended to read as follows:

``2482. Commissary stores: operation.''.

SEC. 332. LIMITED RELEASE OF COMMISSARY STORES SALES
INFORMATION TO MANUFACTURERS, DISTRIBUTORS, AND
OTHER VENDORS DOING BUSINESS WITH DEFENSE
COMMISSARY AGENCY.

Section 2487(b) of title 10, United States Code, is amended
in the second sentence by inserting before the period the
following: ``unless the agreement is between the Defense
Commissary Agency and a manufacturer, distributor, or other
vendor doing business with the Agency and is restricted to
information directly related to merchandise provided by
that manufacturer, distributor, or vendor''.

SEC. 333. ECONOMICAL DISTRIBUTION OF DISTILLED SPIRITS BY
NONAPPROPRIATED FUND INSTRUMENTALITIES.

(a) Economical Distribution.--Subsection (a)(1) of section
2488 of title 10, United States Code, is amended by inserting
after ``most competitive source'' the following: ``and
distributed in the most economical manner''.
(b) Determination of Most Economical Distribution Method.--
Such section is further amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection:
``(c)(1) In the case of covered alcoholic beverage
purchases of distilled spirits, to determine whether a
nonappropriated fund instrumentality of the Department of
Defense provides the most economical method of distribution
to package stores, the Secretary of Defense shall consider
all components of the distribution costs incurred by the
nonappropriated fund instrumentality, such as overhead costs
(including costs associated with management, logistics,
administration, depreciation, and utilities), the costs of
carrying inventory, and handling and distribution costs.
``(2) If the use of a private distributor would subject
covered alcoholic beverage purchases of distilled spirits to
direct or indirect State taxation, a nonappropriated fund
instrumentality shall be considered to be the most economical
method of distribution regardless of the results of the
determination under paragraph (1).
``(3) The Secretary shall use the agencies performing audit
functions on behalf of the armed forces and the Inspector
General of the Department of Defense to make determinations
under this subsection.''.

SEC. 334. TRANSPORTATION BY COMMISSARIES AND EXCHANGES TO
OVERSEAS LOCATIONS.

(a) In General.--Chapter 157 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 2643. Commissary and exchange services: transportation
overseas

``The Secretary of Defense shall authorize the officials
responsible for operation of commissaries and military
exchanges to negotiate directly with private carriers for the
most cost-effective transportation of commissary and exchange
supplies by sea without relying on the Military Sealift
Command or the Military Traffic Management Command. Section
2631 of this title, regarding the preference for vessels of
the United States or belonging to the United States in the
transportation of supplies by sea, shall apply to the
negotiation of transportation contracts under the authority
of this section.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2643. Commissary and exchange services: transportation overseas.''.

SEC. 335. DEMONSTRATION PROJECT FOR UNIFORM FUNDING OF
MORALE, WELFARE, AND RECREATION ACTIVITIES AT
CERTAIN MILITARY INSTALLATIONS.

(a) Demonstration Project Required.--(1) The Secretary of
Defense shall conduct a demonstration project to evaluate the
feasibility of using only nonappropriated funds to support
morale, welfare, and recreation programs at military
installations in order to facilitate the procurement of
property and services for those programs and the management
of employees used to carry out those programs.
(2) Under the demonstration project--
(A) procurements of property and services for programs
referred to in paragraph (1) may be carried out in accordance
with laws and regulations applicable to procurements paid for
with nonappropriated funds; and
(B) appropriated funds available for such programs may be
expended in accordance with laws applicable to expenditures
of nonappropriated funds as if the appropriated funds were
nonappropriated funds.
(3) The Secretary shall prescribe regulations to carry out
paragraph (2). The regulations shall provide for financial
management and accounting of appropriated funds expended in
accordance with subparagraph (B) of such paragraph.
(b) Covered Military Installations.--The Secretary shall
select not less than

[[Page H375]]
three and not more than six military installations to participate in
the demonstration project.
(c) Period of Demonstration Project.--The demonstration
project shall terminate not later than September 30, 1998.
(d) Effect on Employees.--For the purpose of testing fiscal
accounting procedures, the Secretary may convert, for the
duration of the demonstration project, the status of an
employee who carries out a program referred to in subsection
(a)(1) from the status of an employee paid by appropriated
funds to the status of a nonappropriated fund instrumentality
employee, except that such conversion may occur only--
(1) if the employee whose status is to be converted--
(A) is fully informed of the effects of such conversion on
the terms and conditions of the employment of that employee
for purposes of title 5, United States Code, and on the
benefits provided to that employee under such title; and
(B) consents to such conversion; or
(2) in a manner which does not affect such terms and
conditions of employment or such benefits.
(e) Reports.--(1) Not later than six months after the date
of the enactment of this Act, the Secretary shall submit to
Congress an interim report on the implementation of this
section.
(2) Not later than December 31, 1998, the Secretary shall
submit to Congress a final report on the results of the
demonstration project. The report shall include a comparison
of--
(A) the cost incurred under the demonstration project in
using employees paid by appropriated funds together with
nonappropriated fund instrumentality employees to carry out
the programs referred to in subsection (a)(1); and
(B) an estimate of the cost that would have been incurred
if only nonappropriated fund instrumentality employees had
been used to carry out such programs.

SEC. 336. OPERATION OF COMBINED EXCHANGE AND COMMISSARY
STORES.

(a) In General.--(1) Chapter 147 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 2490a. Combined exchange and commissary stores

``(a) Authority.--The Secretary of Defense may authorize a
nonappropriated fund instrumentality to operate a military
exchange and a commissary store as a combined exchange and
commissary store on a military installation.
``(b) Limitations.--(1) Not more than ten combined exchange
and commissary stores may be operated pursuant to this
section.
``(2) The Secretary may select a military installation for
the operation of a combined exchange and commissary store
under this section only if--
``(A) the installation is to be closed, or has been or is
to be realigned, under a base closure law; or
``(B) a military exchange and a commissary store are
operated at the installation by separate entities at the time
of, or immediately before, such selection and it is not
economically feasible to continue that separate operation.
``(c) Operation at Carswell Field.--Combined exchange and
commissary stores operated under this section shall include
the combined exchange and commissary store that is operated
at the Naval Air Station Fort Worth, Joint Reserve Center,
Carswell Field, Texas, under the authority provided in
section 375 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2736).
``(d) Adjustments and Surcharges.--Adjustments to, and
surcharges on, the sales price of a grocery food item sold in
a combined exchange and commissary store under this section
shall be provided for in accordance with the same laws that
govern such adjustments and surcharges for items sold in a
commissary store of the Defense Commissary Agency.
``(e) Use of Appropriated Funds.--(1) If a nonappropriated
fund instrumentality incurs a loss in operating a combined
exchange and commissary store at a military installation
under this section as a result of the requirement set forth
in subsection (d), the Secretary may authorize a transfer of
funds available for the Defense Commissary Agency to the
nonappropriated fund instrumentality to offset the loss.
``(2) The total amount of appropriated funds transferred
during a fiscal year to support the operation of a combined
exchange and commissary store at a military installation
under this section may not exceed an amount that is equal to
25 percent of the amount of appropriated funds that was
provided for the operation of the commissary store of the
Defense Commissary Agency on that installation during the
last full fiscal year of operation of that commissary store.
``(f) Definitions.--In this section:
``(1) The term `nonappropriated fund instrumentality' means
the Army and Air Force Exchange Service, Navy Exchange
Service Command, Marine Corps exchanges, or any other
instrumentality of the United States under the jurisdiction
of the Armed Forces which is conducted for the comfort,
pleasure, contentment, or physical or mental improvement of
members of the Armed Forces.
``(2) The term `base closure law' has the meaning given
such term by section 2667(g) of this title.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``2490a. Combined exchange and commissary stores.''.

(b) Conforming Amendment.--Section 375 of the National
Defense Authorization Act for Fiscal Year 1995 (Public Law
103-337; 108 Stat. 2736) is amended by striking out ``, until
December 31, 1995,''.

SEC. 337. DEFERRED PAYMENT PROGRAMS OF MILITARY EXCHANGES.

(a) Use of Commercial Banking Institution.--(1) As soon as
practicable after the date of the enactment of this Act, the
Secretary of Defense shall seek to enter into an agreement
with a commercial banking institution under which the
institution agrees to finance and operate the deferred
payment program of the Army and Air Force Exchange Service
and the deferred payment program of the Navy Exchange Service
Command. The Secretary shall use competitive procedures to
enter into an agreement under this paragraph.
(2) In order to facilitate the transition of the operation
of the programs referred to in paragraph (1) to commercial
operation under an agreement described in that paragraph, the
Secretary may initially limit the scope of any such agreement
so as to apply to only one of the programs.
(b) Report.--Not later than December 31, 1995, the
Secretary shall submit to Congress a report on the
implementation of this section. The report shall also include
an analysis of the impact of the deferred payment programs
referred to in subsection (a)(1), including the impact of the
default and collection procedures under such programs, on
members of the Armed Forces and their families.

SEC. 338. AVAILABILITY OF FUNDS TO OFFSET EXPENSES INCURRED
BY ARMY AND AIR FORCE EXCHANGE SERVICE ON
ACCOUNT OF TROOP REDUCTIONS IN EUROPE.

Of funds authorized to be appropriated under section
301(5), not less than $70,000,000 shall be available to the
Secretary of Defense for transfer to the Army and Air Force
Exchange Service to offset expenses incurred by the Army and
Air Force Exchange Service on account of reductions in the
number of members of the United States Armed Forces assigned
to permanent duty ashore in Europe.

SEC. 339. STUDY REGARDING IMPROVING EFFICIENCIES IN OPERATION
OF MILITARY EXCHANGES AND OTHER MORALE,
WELFARE, AND RECREATION ACTIVITIES AND
COMMISSARY STORES.

(a) Study Required.--The Secretary of Defense shall conduct
a study regarding the manner in which greater efficiencies
can be achieved in the operation of--
(1) military exchanges;
(2) other instrumentalities of the United States under the
jurisdiction of the Armed Forces which are conducted for the
comfort, pleasure, contentment, or physical or mental
improvement of members of the Armed Forces; and
(3) commissary stores.
(b) Report of Study.--Not later than March 1, 1996, the
Secretary of Defense shall submit to Congress a report
describing the results of the study and containing such
recommendations as the Secretary considers appropriate to
implement options identified in the study to achieve the
greater efficiencies referred to in subsection (a).

SEC. 340. REPEAL OF REQUIREMENT TO CONVERT SHIPS' STORES TO
NONAPPROPRIATED FUND INSTRUMENTALITIES.

(a) Repeal.--Section 371 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 103-160;
10 U.S.C. 7604 note) is amended--
(1) by striking out subsections (a) and (b); and
(2) by redesignating subsections (c) and (d) as subsections
(a) and (b), respectively.
(b) Inspector General Review.--Not later than April 1,
1996, the Inspector General of the Department of Defense
shall submit to Congress a report that reviews the report on
the costs and benefits of converting to operation of Navy
ships' stores by nonappropriated fund instrumentalities that
the Navy Audit Agency prepared in connection with the
postponement of the deadline for the conversion provided for
in section 374(a) of the National Defense Authorization Act
for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2736).

SEC. 341. DISPOSITION OF EXCESS MORALE, WELFARE, AND
RECREATION FUNDS.

Section 2219 of title 10, United States Code, is amended--
(1) in the first sentence, by striking out ``a military
department'' and inserting in lieu thereof ``an armed
force'';
(2) in the second sentence--
(A) by striking out ``, department-wide''; and
(B) by striking out ``of the military department'' and
inserting in lieu thereof ``for that armed force''; and
(3) by adding at the end the following: ``This section does
not apply to the Coast Guard.''.

SEC. 342. CLARIFICATION OF ENTITLEMENT TO USE OF MORALE,
WELFARE, AND RECREATION FACILITIES BY MEMBERS
OF RESERVE COMPONENTS AND DEPENDENTS.

(a) In General.--Section 1065 of title 10, United States
Code, is amended to read as follows:

[[Page H376]]

``Sec. 1065. Morale, welfare, and recreation retail
facilities: use by members of reserve components and
dependents

``(a) Members of the Selected Reserve.--A member of the
Selected Reserve in good standing (as determined by the
Secretary concerned) shall be permitted to use MWR retail
facilities on the same basis as members on active duty.
``(b) Members of Ready Reserve Not in Selected Reserve.--
Subject to such regulations as the Secretary of Defense may
prescribe, a member of the Ready Reserve (other than members
of the Selected Reserve) may be permitted to use MWR retail
facilities on the same basis as members serving on active
duty.
``(c) Reserve Retirees Under Age 60.--A member or former
member of a reserve component under 60 years of age who, but
for age, would be eligible for retired pay under chapter 1223
of this title shall be permitted to use MWR retail facilities
on the same basis as members of the armed forces entitled to
retired pay under any other provision of law.
``(d) Dependents.--(1) Dependents of a member who is
permitted under subsection (a) or (b) to use MWR retail
facilities shall be permitted to use such facilities on the
same basis as dependents of members on active duty.
``(2) Dependents of a member who is permitted under
subsection (c) to use MWR retail facilities shall be
permitted to use such facilities on the same basis as
dependents of members of the armed forces entitled to retired
pay under any other provision of law.
``(e) MWR Retail Facility Defined.--In this section, the
term `MWR retail facilities' means exchange stores and other
revenue-generating facilities operated by nonappropriated
fund activities of the Department of Defense for the morale,
welfare, and recreation of members of the armed forces.''.
(b) Clerical Amendment.--The item relating to such section
in the table of sections at the beginning of chapter 54 of
such title is amended to read as follows:

``1065. Morale, welfare, and recreation retail facilities: use by
members of reserve components and dependents.''.
Subtitle E--Performance of Functions by Private-Sector Sources

SEC. 351. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION
SERVICES.

(a) Requirement for Competitive Procurement.--Except as
provided in subsection (b), the Secretary of Defense shall,
during fiscal year 1996 and consistent with the requirements
of title 44, United States Code, competitively procure
printing and duplication services from private-sector sources
for the performance of at least 70 percent of the total
printing and duplication requirements of the Defense Printing
Service.
(b) Exception for Classified Information.--The requirement
of subsection (a) shall not apply to the procurement of
services for printing and duplicating classified documents
and information.

SEC. 352. DIRECT VENDOR DELIVERY SYSTEM FOR CONSUMABLE
INVENTORY ITEMS OF DEPARTMENT OF DEFENSE.

(a) Implementation of Direct Vendor Delivery System.--Not
later than September 30, 1997, the Secretary of Defense
shall, to the maximum extent practicable, implement a system
under which consumable inventory items referred to in
subsection (b) are delivered to military installations
throughout the United States directly by the vendors of those
items. The purpose for implementing the system is to reduce
the expense and necessity of maintaining extensive warehouses
for those items within the Department of Defense.
(b) Covered Items.--The items referred to in subsection (a)
are the following:
(1) Food and clothing.
(2) Medical and pharmaceutical supplies.
(3) Automotive, electrical, fuel, and construction
supplies.
(4) Other consumable inventory items the Secretary
considers appropriate.

SEC. 353. PAYROLL, FINANCE, AND ACCOUNTING FUNCTIONS OF THE
DEPARTMENT OF DEFENSE.

(a) Plan for Private Operation of Certain Functions.--(1)
Not later than October 1, 1996, the Secretary of Defense
shall submit to Congress a plan for the performance by
private-sector sources of payroll functions for civilian
employees of the Department of Defense other than employees
paid from nonappropriated funds.
(2)(A) The Secretary shall implement the plan referred to
in paragraph (1) if the Secretary determines that the cost of
performance by private-sector sources of the functions
referred to in that paragraph does not exceed the cost of
performance of those functions by employees of the Federal
Government.
(B) In computing the total cost of performance of such
functions by employees of the Federal Government, the
Secretary shall include the following:
(i) Managerial and administrative costs.
(ii) Personnel costs, including the cost of providing
retirement benefits for such personnel.
(iii) Costs associated with the provision of facilities and
other support by Federal agencies.
(C) The Defense Contract Audit Agency shall verify the
costs computed for the Secretary under this paragraph by
others.
(3) At the same time the Secretary submits the plan
required by paragraph (1), the Secretary shall submit to
Congress a report on other accounting and finance functions
of the Department that are appropriate for performance by
private-sector sources.
(b) Pilot Program for Private Operation of NAFI
Functions.--(1) The Secretary shall carry out a pilot program
to test the performance by private-sector sources of payroll
and other accounting and finance functions of nonappropriated
fund instrumentalities and to evaluate the extent to which
cost savings and efficiencies would result from the
performance of such functions by those sources.
(2) The payroll and other accounting and finance functions
designated by the Secretary for performance by private-sector
sources under the pilot program shall include at least one
major payroll, accounting, or finance function.
(3) To carry out the pilot program, the Secretary shall
enter into discussions with private-sector sources for the
purpose of developing a request for proposals to be issued
for performance by those sources of functions designated by
the Secretary under paragraph (2). The discussions shall be
conducted on a schedule that accommodates issuance of a
request for proposals within 60 days after the date of the
enactment of this Act.
(4) A goal of the pilot program is to reduce by at least 25
percent the total costs incurred by the Department annually
for the performance of a function referred to in paragraph
(2) through the performance of that function by a private-
sector source.
(5) Before conducting the pilot program, the Secretary
shall develop a plan for the program that addresses the
following:
(A) The purposes of the program.
(B) The methodology, duration, and anticipated costs of the
program, including the cost of an arrangement pursuant to
which a private-sector source would receive an agreed-upon
payment plus an additional negotiated amount not to exceed 50
percent of the dollar savings achieved in excess of the goal
specified in paragraph (4).
(C) A specific citation to any provisions of law, rule, or
regulation that, if not waived, would prohibit the conduct of
the program or any part of the program.
(D) A mechanism to evaluate the program.
(E) A provision for all payroll, accounting, and finance
functions of nonappropriated fund instrumentalities of the
Department of Defense to be performed by private-
sector sources, if determined advisable on the basis of a
final assessment of the results of the program.
(6) The Secretary shall act through the Under Secretary of
Defense (Comptroller) in the performance of the Secretary's
responsibilities under this subsection.
(c) Limitation on Opening of New Operating Locations for
Defense Finance and Accounting Service.--(1) Except as
provided in paragraph (2), the Secretary may not establish a
new operating location for the Defense Finance and Accounting
Service during fiscal year 1996.
(2) The Secretary may establish a new operating location
for the Defense Finance and Accounting Service if--
(A) for a new operating location that the Secretary planned
before the date of the enactment of this Act to establish on
or after that date, the Secretary reconsiders the need for
establishing that new operating location; and
(B) for each new operating location, including a new
operating location referred to in subparagraph (A)--
(i) the Secretary submits to Congress, as part of the
report required by subsection (a)(4), an analysis of the need
for establishing the new operating location; and
(ii) a period of 30 days elapses after the Congress
receives the report.
(3) In this subsection, the term ``new operating location''
means an operating location that is not in operation on the
date of the enactment of this Act, except that such term does
not include an operating location for which, as of such
date--
(A) the Secretary has established a date for the
commencement of operations; and
(B) funds have been expended for the purpose of its
establishment.

SEC. 354. DEMONSTRATION PROGRAM TO IDENTIFY OVERPAYMENTS MADE
TO VENDORS.

(a) In General.--The Secretary of Defense shall conduct a
demonstration program to evaluate the feasibility of using
private contractors to audit accounting and procurement
records of the Department of Defense in order to identify
overpayments made to vendors by the Department. The
demonstration program shall be conducted for the Defense
Logistics Agency and include the Defense Personnel Support
Center.
(b) Program Requirements.--(1) Under the demonstration
program, the Secretary shall, by contract, provide for one or
more persons to audit the accounting and procurement records
of the Defense Logistics Agency that relate to (at least)
fiscal years 1993, 1994, and 1995. The Secretary may enter
into more than one contract under the program.
(2) A contract under the demonstration program shall
require the contractor to use data processing techniques that
are generally used in audits of private-sector records
similar to the records audited under the contract.
(c) Audit Requirements.--In conducting an audit under the
demonstration program, a contractor shall compare Department
of Defense purchase agreements (and related documents) with
invoices submitted by vendors

[[Page H377]]
under the purchase agreements. A purpose of the comparison is to
identify, in the case of each audited purchase agreement, the
following:
(1) Any payments to the vendor for costs that are not
allowable under the terms of the purchase agreement or by
law.
(2) Any amounts not deducted from the total amount paid to
the vendor under the purchase agreement that should have been
deducted from that amount on account of goods and services
provided to the vendor by the Department.
(3) Duplicate payments.
(4) Unauthorized charges.
(5) Other discrepancies between the amount paid to the
vendor and the amount actually due the vendor under the
purchase agreement.
(d) Bonus Payment.--To the extent provided for in a
contract under the demonstration program, the Secretary may
pay the contractor a bonus in addition to any other amount
paid for performance of the contract. The amount of such
bonus may not exceed the amount that is equal to 25 percent
of all amounts recovered by the United States on the basis of
information obtained as a result of the audit performed under
the contract. Any such bonus shall be paid out of amounts
made available pursuant to subsection (e).
(e) Availability of Funds.--Of the amount authorized to be
appropriated pursuant to section 301(5), not more than
$5,000,000 shall be available for the demonstration program.

SEC. 355. PILOT PROGRAM ON PRIVATE OPERATION OF DEFENSE
DEPENDENTS' SCHOOLS.

(a) Pilot Program.--The Secretary of Defense may conduct a
pilot program to evaluate the feasibility of using private
contractors to operate schools of the defense dependents'
education system established under section 1402(a) of the
Defense Dependents' Education Act of 1978 (20 U.S.C. 921(a)).
(b) Selection of School for Program.--If the Secretary
conducts the pilot program, the Secretary shall select one
school of the defense dependents' education system for
participation in the program and provide for the operation of
the school by a private contractor for not less than one
complete school year.
(c) Report.--Not later than 30 days after the end of the
first school year in which the pilot program is conducted,
the Secretary shall submit to Congress a report on the
results of the program. The report shall include the
recommendation of the Secretary with respect to the extent to
which other schools of the defense dependents' education
system should be operated by private contractors.

SEC. 356. PROGRAM FOR IMPROVED TRAVEL PROCESS FOR THE
DEPARTMENT OF DEFENSE.

(a) In General.--(1) The Secretary of Defense shall conduct
a program to evaluate options to improve the Department of
Defense travel process. To carry out the program, the
Secretary shall compare the results of the tests conducted
under subsection (b) to determine which travel process tested
under such subsection is the better option to effectively
manage travel of Department personnel.
(2) The program shall be conducted at not less than three
and not more than six military installations, except that an
installation may be the subject of only one test conducted
under the program.
(3) The Secretary shall act through the Under Secretary of
Defense (Comptroller) in the performance of the Secretary's
responsibilities under this section.
(b) Conduct of Tests.--(1) The Secretary shall conduct a
test at an installation referred to in subsection (a)(2)
under which the Secretary--
(A) implements the changes proposed to be made with respect
to the Department of Defense travel process by the task force
on travel management that was established by the Secretary in
July 1994;
(B) manages and uniformly applies that travel process
(including the implemented changes) throughout the
Department; and
(C) provides opportunities for private-sector sources to
provide travel reservation services and credit card services
to facilitate that travel process.
(2) The Secretary shall conduct a test at an installation
referred to in subsection (a)(2) under which the Secretary--
(A) enters into one or more contracts with a private-sector
source pursuant to which the private-sector source manages
the Department of Defense travel process (except for
functions referred to in subparagraph (B)), provides for
responsive, reasonably priced services as part of the travel
process, and uniformly applies the travel process throughout
the Department; and
(B) provides for the performance by employees of the
Department of only those travel functions, such as travel
authorization, that the Secretary considers to be necessary
to be performed by such employees.
(3) Each test required by this subsection shall begin not
later than 60 days after the date of the enactment of this
Act and end two years after the date on which it began. Each
such test shall also be conducted in accordance with the
guidelines for travel management issued for the Department by
the Under Secretary of Defense (Comptroller).
(c) Evaluation Criteria.--The Secretary shall establish
criteria to evaluate the travel processes tested under
subsection (b). The criteria shall, at a minimum, include the
extent to which a travel process provides for the following:
(1) The coordination, at the time of a travel reservation,
of travel policy and cost estimates with the mission which
necessitates the travel.
(2) The use of fully integrated travel solutions envisioned
by the travel reengineering report of the Department of
Defense dated January 1995.
(3) The coordination of credit card data and travel
reservation data with cost estimate data.
(4) The elimination of the need for multiple travel
approvals through the coordination of such data with proposed
travel plans.
(5) A responsive and flexible management information system
that enables the Under Secretary of Defense (Comptroller) to
monitor travel expenses throughout the year, accurately plan
travel budgets for future years, and assess, in the case of
travel of an employee on temporary duty, the relationship
between the cost of the travel and the value of the travel to
the accomplishment of the mission which necessitates the
travel.
(d) Plan for Program.--Before conducting the program, the
Secretary shall develop a plan for the program that addresses
the following:
(1) The purposes of the program, including the achievement
of an objective of reducing by at least 50 percent the total
cost incurred by the Department annually to manage the
Department of Defense travel process.
(2) The methodology and anticipated cost of the program,
including the cost of an arrangement pursuant to which a
private-sector source would receive an agreed-upon payment
plus an additional negotiated amount that does not exceed 50
percent of the total amount saved in excess of the objective
specified in paragraph (1).
(3) A specific citation to any provision or law, rule, or
regulation that, if not waived, would prohibit the conduct of
the program or any part of the program.
(4) The evaluation criteria established pursuant to
subsection (c).
(5) A provision for implementing throughout the Department
the travel process determined to be the better option to
effectively manage travel of Department personnel on the
basis of a final assessment of the results of the program.
(e) Report.--After the first full year of the conduct of
the tests required by subsection (b), the Secretary shall
submit to the Committee on Armed Services of the Senate and
the Committee on National Security of the House of
Representatives a report on the implementation of the
program. The report shall include an analysis of the
evaluation criteria established pursuant to subsection (c).

SEC. 357. INCREASED RELIANCE ON PRIVATE-SECTOR SOURCES FOR
COMMERCIAL PRODUCTS AND SERVICES.

(a) In General.--The Secretary of Defense shall endeavor to
carry out through a private-sector source any activity to
provide a commercial product or service for the Department of
Defense if--
(1) the product or service can be provided adequately
through such a source; and
(2) an adequate competitive environment exists to provide
for economical performance of the activity by such a source.
(b) Applicability.--(1) Subsection (a) shall not apply to
any commercial product or service with respect to which the
Secretary determines that production, manufacture, or
provision of that product or service by the Government is
necessary for reasons of national security.
(2) A determination under paragraph (1) shall be made in
accordance with regulations prescribed under subsection (c).
(c) Regulations.--The Secretary shall prescribe regulations
to carry out this section. Such regulations shall be
prescribed in consultation with the Director of the Office of
Management and Budget.
(d) Report.--(1) The Secretary shall identify activities of
the Department (other than activities specified by the
Secretary pursuant to subsection (b)) that are carried out by
employees of the Department to provide commercial-type
products or services for the Department.
(2) Not later than April 15, 1996, the Secretary shall
transmit to the congressional defense committees a report on
opportunities for increased use of private-sector sources to
provide commercial products and services for the Department.
(3) The report required by paragraph (2) shall include the
following:
(A) A list of activities identified under paragraph (1)
indicating, for each activity, whether the Secretary proposes
to convert the performance of that activity to performance by
private-sector sources and, if not, the reasons why.
(B) An assessment of the advantages and disadvantages of
using private-sector sources, rather than employees of the
Department, to provide commercial products and services for
the Department that are not essential to the warfighting
mission of the Armed Forces.
(C) A specification of all legislative and regulatory
impediments to converting the performance of activities
identified under paragraph (1) to performance by private-
sector sources.
(D) The views of the Secretary on the desirability of
terminating the applicability of OMB Circular A-76 to the
Department.
(4) The Secretary shall carry out paragraph (1) in
consultation with the Director of the Office of Management
and Budget and the Comptroller General of the United States.
In carrying out that paragraph, the Secretary shall consult
with, and seek the

[[Page H378]]
views of, representatives of the private sector, including
organizations representing small businesses.
Subtitle F--Miscellaneous Reviews, Studies, and Reports

SEC. 361. QUARTERLY READINESS REPORTS.

(a) In General.--(1) Chapter 22 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 452. Quarterly readiness reports

``(a) Requirement.--Not later than 30 days after the end of
each calendar-year quarter, the Secretary of Defense shall
submit to the Committee on Armed Services of the Senate and
the Committee on National Security of the House of
Representatives a report on military readiness. The report
for any quarter shall be based on assessments that are
provided during that quarter--
``(1) to any council, committee, or other body of the
Department of Defense (A) that has responsibility for
readiness oversight, and (B) the membership of which includes
at least one civilian officer in the Office of the Secretary
of Defense at the level of Assistant Secretary of Defense or
higher;
``(2) by senior civilian and military officers of the
military departments and the commanders of the unified and
specified commands; and
``(3) as part of any regularly established process of
periodic readiness reviews for the Department of Defense as a
whole.
``(b) Matters To Be Included.--Each such report shall--
``(1) specifically describe identified readiness problems
or deficiencies and planned remedial actions; and
``(2) include the key indicators and other relevant data
related to the identified problem or deficiency.
``(c) Classification of Reports.--Reports under this
section shall be submitted in unclassified form and may, as
the Secretary determines necessary, also be submitted in
classified form.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``452. Quarterly readiness reports.''.

(b) Effective Date.--Section 452 of title 10, United States
Code, as added by subsection (a), shall take effect with the
calendar-year quarter during which this Act is enacted.

SEC. 362. RESTATEMENT OF REQUIREMENT FOR SEMIANNUAL REPORTS
TO CONGRESS ON TRANSFERS FROM HIGH-PRIORITY
READINESS APPROPRIATIONS.

Section 361 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2732) is
amended to read as follows:

``SEC. 361. SEMIANNUAL REPORTS TO CONGRESS ON TRANSFERS FROM
HIGH-PRIORITY READINESS APPROPRIATIONS.

``(a) Annual Reports.--During 1996 and 1997, the Secretary
of Defense shall submit to the congressional defense
committees a report on transfers during the preceding fiscal
year from funds available for each budget activity specified
in subsection (d) (hereinafter in this section referred to as
`covered budget activities'). The report each year shall be
submitted not later than the date in that year on which the
President submits the budget for the next fiscal year to
Congress pursuant to section 1105 of title 31, United States
Code.
``(b) Midyear Reports.--On May 1 of each year specified in
subsection (a), the Secretary of Defense shall submit to the
congressional defense committees a report providing the same
information, with respect to the first six months of the
fiscal year in which the report is submitted, that is
provided in reports under subsection (a) with respect to the
preceding fiscal year.
``(c) Matters To Be Included.--In each report under this
section, the Secretary shall include for each covered budget
activity the following:
``(1) A statement, for the period covered by the report,
of--
``(A) the total amount of transfers into funds available
for that activity;
``(B) the total amount of transfers from funds available
for that activity; and
``(C) the net amount of transfers into, or out of, funds
available for that activity.
``(2) A detailed explanation of the transfers into, and out
of, funds available for that activity during the period
covered by the report.
``(d) Covered Budget Activities.--The budget activities to
which this section applies are the following:
``(1) The budget activity groups (known as `subactivities')
within the Operating Forces budget activity of the annual
Operation and Maintenance, Army, appropriation that are
designated as follows:
``(A) Combat Units.
``(B) Tactical Support.
``(C) Force-Related Training/Special Activities.
``(D) Depot Maintenance.
``(E) JCS Exercises.
``(2) The budget activity groups (known as `subactivities')
within the Operating Forces budget activity of the annual
Operation and Maintenance, Navy, appropriation that are
designated as follows:
``(A) Mission and Other Flight Operations.
``(B) Mission and Other Ship Operations.
``(C) Fleet Air Training.
``(D) Ship Operational Support and Training.
``(E) Aircraft Depot Maintenance.
``(F) Ship Depot Maintenance.
``(3) The budget activity groups (known as
`subactivities'), or other activity, within the Operating
Forces budget activity of the annual Operation and
Maintenance, Air Force, appropriation that are designated or
otherwise identified as follows:
``(A) Primary Combat Forces.
``(B) Primary Combat Weapons.
``(C) Global and Early Warning.
``(D) Air Operations Training.
``(E) Depot Maintenance.
``(F) JCS Exercises.''.

SEC. 363. REPORT REGARDING REDUCTION OF COSTS ASSOCIATED WITH
CONTRACT MANAGEMENT OVERSIGHT.

(a) Report Required.--Not later than April 1, 1996, the
Comptroller General of the United States shall submit to
Congress a report identifying methods to reduce the cost to
the Department of Defense of management oversight of
contracts in connection with major defense acquisition
programs.
(b) Major Defense Acquisition Programs Defined.--For
purposes of this section, the term ``major defense
acquisition program'' has the meaning given that term in
section 2430(a) of title 10, United States Code.

SEC. 364. REVIEWS OF MANAGEMENT OF INVENTORY CONTROL POINTS
AND MATERIEL MANAGEMENT STANDARD SYSTEM.

(a) Review of Consolidation of Inventory Control Points.--
(1) The Secretary of Defense shall conduct a review of the
management by the Defense Logistics Agency of all inventory
control points of the Department of Defense. In conducting
the review, the Secretary shall examine the management and
acquisition practices of the Defense Logistics Agency for
inventory of repairable spare parts.
(2) Not later than March 31, 1996, the Secretary shall
submit to the Comptroller General of the United States and
the congressional defense committees a report on the results
the review conducted under paragraph (1).
(b) Review of Materiel Management Standard System.--(1) The
Comptroller General of the United States shall conduct a
review of the automated data processing system of the
Department of Defense known as the Materiel Management
Standard System.
(2) Not later than May 1, 1996, the Comptroller General
shall submit to the congressional defense committees a report
on the results of the review conducted under paragraph (1).

3SEC. 365. REPORT ON PRIVATE PERFORMANCE OF CERTAIN FUNCTIONS
PERFORMED BY MILITARY AIRCRAFT.

(a) Report Required.--Not later than May 1, 1996, the
Secretary of Defense shall submit to Congress a report on the
feasibility of providing for the performance by private-
sector sources of functions necessary to be performed to
fulfill the requirements of the Department of Defense for air
transportation of personnel and cargo.
(b) Content of Report.--The report shall include the
following:
(1) A cost-benefit analysis with respect to the performance
by private-sector sources of functions described in
subsection (a), including an explanation of the assumptions
used in the cost-benefit analysis.
(2) An assessment of the issues raised by providing for
such performance by means of a contract entered into with a
private-sector source.
(3) An assessment of the issues raised by providing for
such performance by means of converting functions described
in subsection (a) to private ownership and operation, in
whole or in part.
(4) A discussion of the requirements for the performance of
such functions in order to fulfill the requirements referred
to in subsection (a) during wartime.
(5) The effect on military personnel and facilities of
using private-sector sources to fulfill the requirements
referred to in such subsection.
(6) The performance by private-sector sources of any other
military aircraft functions (such as non-combat inflight
fueling of aircraft) the Secretary considers appropriate.

SEC. 366. STRATEGY AND REPORT ON AUTOMATED INFORMATION
SYSTEMS OF DEPARTMENT OF DEFENSE.

(a) Development of Strategy.--The Secretary of Defense
shall develop a strategy for the development or modernization
of automated information systems for the Department of
Defense.
(b) Matters to Consider.--In developing the strategy
required under subsection (a), the Secretary shall consider
the following:
(1) The use of performance measures and management
controls.
(2) Findings of the Functional Management Review conducted
by the Secretary.
(3) Program management actions planned by the Secretary.
(4) Actions and milestones necessary for completion of
functional and economic analyses for--
(A) the Automated System for Transportation data;
(B) continuous acquisition and life cycle support;
(C) electronic data interchange;
(D) flexible computer integrated manufacturing;
(E) the Navy Tactical Command Support System; and
(F) the Defense Information System Network.
(5) Progress made by the Secretary in resolving problems
with respect to the Defense

[[Page H379]]
Information System Network and the Joint Computer-Aided Acquisition and
Logistics Support System.
(6) Tasks identified in the review conducted by the
Secretary of the Standard Installation/Division Personnel
System-3.
(7) Such other matters as the Secretary considers
appropriate.
(c) Report on Strategy.--(1) Not later than April 15, 1996,
the Secretary shall submit to Congress a report on the
development of the strategy required under subsection (a).
(2) In the case of the Air Force Wargaming Center, the Air
Force Command Exercise System, the Cheyenne Mountain Upgrade,
the Transportation Coordinator Automated Command and Control
Information Systems, and the Wing Command and Control
Systems, the report required by paragraph (1) shall provide
functional economic analyses and address waivers exercised
for compelling military importance under section 381(d) of
the National Defense Authorization Act for Fiscal Year 1995
(Public Law 103-337; 108 Stat. 2739).
(3) The report required by paragraph (1) shall also include
the following:
(A) A certification by the Secretary of the termination of
the Personnel Electronic Record Management System or a
justification for the continued need for such system.
(B) Findings of the Functional Management Review conducted
by the Secretary and program management actions planned by
the Secretary for--
(i) the Base Level System Modernization and the Sustaining
Base Information System; and
(ii) the Standard Installation/Division Personnel System-3.
(C) An assessment of the implementation of migration
systems and applications, including--
(i) identification of the systems and applications by
functional or business area, specifying target dates for
operation of the systems and applications;
(ii) identification of the legacy systems and applications
that will be terminated;
(iii) the cost of and schedules for implementing the
migration systems and applications; and
(iv) termination schedules.
(D) A certification by the Secretary that each information
system that is subject to review by the Major Automated
Information System Review Committee of the Department is
cost-effective and supports the corporate information
management goals of the Department, including the results of
the review conducted for each such system by the Committee.
Subtitle G--Other Matters

SEC. 371. CODIFICATION OF DEFENSE BUSINESS OPERATIONS FUND.

(a) Management of Working-Capital Funds.--(1) Chapter 131
of title 10, United States Code, is amended by inserting
after section 2215 the following new section:

``Sec. 2216. Defense Business Operations Fund

``(a) Management of Working-Capital Funds and Certain
Activities.--The Secretary of Defense may manage the
performance of the working-capital funds and industrial,
commercial, and support type activities described in
subsection (b) through the fund known as the Defense Business
Operations Fund, which is established on the books of the
Treasury. Except for the funds and activities specified in
subsection (b), no other functions, activities, funds, or
accounts of the Department of Defense may be managed or
converted to management through the Fund.
``(b) Funds and Activities Included.--The funds and
activities referred to in subsection (a) are the following:
``(1) Working-capital funds established under section 2208
of this title and in existence on December 5, 1991.
``(2) Those activities that, on December 5, 1991, were
funded through the use of a working-capital fund established
under that section.
``(3) The Defense Finance and Accounting Service.
``(4) The Defense Commissary Agency.
``(5) The Defense Reutilization and Marketing Service.
``(6) The Joint Logistics Systems Center.
``(c) Separate Accounting, Reporting, and Auditing of Funds
and Activities.--(1) The Secretary of Defense shall provide
in accordance with this subsection for separate accounting,
reporting, and auditing of funds and activities managed
through the Fund.
``(2) The Secretary shall maintain the separate identity of
each fund and activity managed through the Fund that (before
the establishment of the Fund) was managed as a separate Fund
or activity.
``(3) The Secretary shall maintain separate records for
each function for which payment is made through the Fund and
which (before the establishment of the Fund) was paid
directly through appropriations, including the separate
identity of the appropriation account used to pay for the
performance of the function.
``(d) Charges for Goods and Services Provided Through the
Fund.--(1) Charges for goods and services provided through
the Fund shall include the following:
``(A) Amounts necessary to recover the full costs of the
goods and services, whenever practicable, and the costs of
the development, implementation, operation, and maintenance
of systems supporting the wholesale supply and maintenance
activities of the Department of Defense.
``(B) Amounts for depreciation of capital assets, set in
accordance with generally accepted accounting principles.
``(C) Amounts necessary to recover the full cost of the
operation of the Defense Finance Accounting Service.
``(2) Charges for goods and services provided through the
Fund may not include the following:
``(A) Amounts necessary to recover the costs of a military
construction project (as defined in section 2801(b) of this
title), other than a minor construction project financed by
the Fund pursuant to section 2805(c)(1) of this title.
``(B) Amounts necessary to cover costs incurred in
connection with the closure or realignment of a military
installation.
``(C) Amounts necessary to recover the costs of functions
designated by the Secretary of Defense as mission critical,
such as ammunition handling safety, and amounts for ancillary
tasks not directly related to the mission of the function or
activity managed through the Fund.
``(3)(A) The Secretary of Defense may submit to a customer
a bill for the provision of goods and services through the
Fund in advance of the provision of those goods and services.
``(B) The Secretary shall submit to Congress a report on
advance billings made pursuant to subparagraph (A)--
``(i) when the aggregate amount of all such billings after
the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1996 reaches $100,000,000;
and
``(ii) whenever the aggregate amount of all such billings
after the date of a preceding report under this subparagraph
reaches $100,000,000.
``(C) Each report under subparagraph (B) shall include, for
each such advance billing, the following:
``(i) An explanation of the reason for the advance billing.
``(ii) An analysis of the impact of the advance billing on
readiness.
``(iii) An analysis of the impact of the advance billing on
the customer so billed.
``(e) Capital Asset Subaccount.--(1) Amounts charged for
depreciation of capital assets pursuant to subsection
(d)(1)(B) shall be credited to a separate capital asset
subaccount established within the Fund.
``(2) The Secretary of Defense may award contracts for
capital assets of the Fund in advance of the availability of
funds in the subaccount.
``(f) Procedures For Accumulation of Funds.--The Secretary
of Defense shall establish billing procedures to ensure that
the balance in the Fund does not exceed the amount necessary
to provide for the working capital requirements of the Fund,
as determined by the Secretary.
``(g) Purchase From Other Sources.--The Secretary of
Defense or the Secretary of a military department may
purchase goods and services that are available for purchase
from the Fund from a source other than the Fund if the
Secretary determines that such source offers a more
competitive rate for the goods and services than the Fund
offers.
``(h) Annual Reports and Budget.--The Secretary of Defense
shall annually submit to Congress, at the same time that the
President submits the budget under section 1105 of title 31,
the following:
``(1) A detailed report that contains a statement of all
receipts and disbursements of the Fund (including such a
statement for each subaccount of the Fund) for the fiscal
year ending in the year preceding the year in which the
budget is submitted.
``(2) A detailed proposed budget for the operation of the
Fund for the fiscal year for which the budget is submitted.
``(3) A comparison of the amounts actually expended for the
operation of the Fund for the fiscal year referred to in
paragraph (1) with the amount proposed for the operation of
the Fund for that fiscal year in the President's budget.
``(4) A report on the capital asset subaccount of the Fund
that contains the following information:
``(A) The opening balance of the subaccount as of the
beginning of the fiscal year in which the report is
submitted.
``(B) The estimated amounts to be credited to the
subaccount in the fiscal year in which the report is
submitted.
``(C) The estimated amounts of outlays to be paid out of
the subaccount in the fiscal year in which the report is
submitted.
``(D) The estimated balance of the subaccount at the end of
the fiscal year in which the report is submitted.
``(E) A statement of how much of the estimated balance at
the end of the fiscal year in which the report is submitted
will be needed to pay outlays in the immediately following
fiscal year that are in excess of the amount to be credited
to the subaccount in the immediately following fiscal year.
``(i) Definitions.--In this section:
``(1) The term `capital assets' means the following capital
assets that have a development or acquisition cost of not
less than $50,000:
``(A) Minor construction projects financed by the Fund
pursuant to section 2805(c)(1) of this title.
``(B) Automatic data processing equipment, software.
``(C) Equipment other than equipment described in
subparagraph (B).
``(D) Other capital improvements.
``(2) The term `Fund' means the Defense Business Operations
Fund.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after

[[Page H380]]
the item relating to section 2215 the following new item:
``2216. Defense Business Operations Fund.''.

(b) Conforming Repeals.--The following provisions of law
are hereby repealed:
(1) Subsections (b), (c), (d), and (e) of section 311 of
the National Defense Authorization Act for Fiscal Year 1995
(Public Law 103-337; 10 U.S.C. 2208 note).
(2) Subsections (a) and (b) of section 333 of the National
Defense Authorization Act for Fiscal Year 1994 (Public Law
103-160; 10 U.S.C. 2208 note).
(3) Section 342 of the National Defense Authorization Act
for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 2208
note).
(4) Section 316 of the National Defense Authorization Act
for Fiscal Years 1992 and 1993 (Public Law 102-190; 10 U.S.C.
2208 note).
(5) Section 8121 of the Department of Defense
Appropriations Act, 1992 (Public Law 102-172; 10 U.S.C. 2208
note).

SEC. 372. CLARIFICATION OF SERVICES AND PROPERTY THAT MAY BE
EXCHANGED TO BENEFIT THE HISTORICAL COLLECTION
OF THE ARMED FORCES.

Section 2572(b)(1) of title 10, United States Code, is
amended by striking out ``not needed by the armed forces''
and all that follows through the end of the paragraph and
inserting in lieu thereof the following: ``not needed by the
armed forces for any of the following items or services if
such items or services directly benefit the historical
collection of the armed forces:
``(A) Similar items held by any individual, organization,
institution, agency, or nation.
``(B) Conservation supplies, equipment, facilities, or
systems.
``(C) Search, salvage, or transportation services.
``(D) Restoration, conservation, or preservation services.
``(E) Educational programs.''.

SEC. 373. FINANCIAL MANAGEMENT TRAINING.

(a) Limitation.--The Secretary of Defense may enter into a
capital lease for the establishment of a Department of
Defense financial management training center no earlier than
the date that is 30 days after the date on which the
Secretary of Defense submits to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives, in accordance with
subsection (b), a certification of the need for such a center
and a report on financial management training for Department
of Defense personnel.
(b) Certification and Report.--(1) The certification and
report referred to in subsection (a) are the following:
(A) Certification by the Secretary of the need for such a
center.
(B) A report, submitted with the certification, on
financial management training for Department of Defense
personnel.
(2) Any report under paragraph (1) shall contain the
following:
(A) The Secretary's analysis of the requirements for
providing financial management training for employees of the
Department of Defense.
(B) The alternatives considered by the Secretary for
meeting those requirements.
(C) A detailed plan for meeting those requirements.
(D) A financial analysis of the estimated short-term and
long-term costs of carrying out the plan.
(3) If, upon completing the analysis referred to in
paragraph (2)(A) and after considering alternatives as
described in paragraph (2)(B), the Secretary determines to
meet the requirements for providing financial management
training for employees of the Department of Defense through
establishment of a financial management training center, the
Secretary--
(A) shall make the determination of the location of the
center using a merit-based selection process; and
(B) shall include in the report under paragraph (1) a
description of that merit-based selection process.

SEC. 374. PERMANENT AUTHORITY FOR USE OF PROCEEDS FROM THE
SALE OF CERTAIN LOST, ABANDONED, OR UNCLAIMED
PROPERTY.

(a) Permanent Authority.--Section 2575 of title 10 is
amended--
(1) by striking out subsection (b) and inserting in lieu
thereof the following:
``(b)(1) In the case of lost, abandoned, or unclaimed
personal property found on a military installation, the
proceeds from the sale of the property under this section
shall be credited to the operation and maintenance account of
that installation and used--
``(A) to reimburse the installation for any costs incurred
by the installation to collect, transport, store, protect, or
sell the property; and
``(B) to the extent that the amount of the proceeds exceeds
the amount necessary for reimbursing all such costs, to
support morale, welfare, and recreation activities under the
jurisdiction of the armed forces that are conducted for the
comfort, pleasure, contentment, or physical or mental
improvement of members of the armed forces at such
installation.
``(2) The net proceeds from the sale of other property
under this section shall be covered into the Treasury as
miscellaneous receipts.''; and
(2) by adding at the end the following:
``(d)(1) The owner (or heirs, next of kin, or legal
representative of the owner) of personal property the
proceeds of which are credited to a military installation
under subsection (b)(1) may file a claim with the Secretary
of Defense for the amount equal to the proceeds (less costs
referred to in subparagraph (A) of such subsection). Amounts
to pay the claim shall be drawn from the morale, welfare, and
recreation account for the installation that received the
proceeds.
``(2) The owner (or heirs, next of kin, or legal
representative of the owner) may file a claim with the
Comptroller General of the United States for proceeds covered
into the Treasury under subsection (b)(2).
``(3) Unless a claim is filed under this subsection within
5 years after the date of the disposal of the property to
which the claim relates, the claim may not be considered by a
court, the Secretary of Defense (in the case of a claim filed
under paragraph (1)), or the Comptroller General of the
United States (in the case of a claim filed under paragraph
(2)).''.
(b) Repeal of Authority for Demonstration Program.--Section
343 of the National Defense Authorization Act for Fiscal
Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1343) is
repealed.

SEC. 375. SALE OF MILITARY CLOTHING AND SUBSISTENCE AND OTHER
SUPPLIES OF THE NAVY AND MARINE CORPS.

(a) In General.--(1) Chapter 651 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 7606. Subsistence and other supplies: members of armed
forces; veterans; executive or military departments and
employees; prices

``(a)(1) The Secretary of the Navy shall procure and sell,
for cash or credit--
``(A) articles designated by the Secretary to members of
the Navy and Marine Corps; and
``(B) items of individual clothing and equipment to members
of the Navy and Marine Corps, under such restrictions as the
Secretary may prescribe.
``(2) An account of sales on credit shall be kept and the
amount due reported to the Secretary. Except for articles and
items acquired through the use of working capital funds under
section 2208 of this title, sales of articles shall be at
cost, and sales of individual clothing and equipment shall be
at average current prices, including overhead, as determined
by the Secretary.
``(b) The Secretary shall sell subsistence supplies to
members of other armed forces at the prices at which like
property is sold to members of the Navy and Marine Corps.
``(c) The Secretary may sell serviceable supplies, other
than subsistence supplies, to members of other armed forces
for the buyers' use in the service. The prices at which the
supplies are sold shall be the same prices at which like
property is sold to members of the Navy and Marine Corps.
``(d) A person who has been discharged honorably or under
honorable conditions from the Army, Navy, Air Force or Marine
Corps and who is receiving care and medical treatment from
the Public Health Service or the Department of Veterans
Affairs may buy subsistence supplies and other supplies,
except articles of uniform, at the prices at which like
property is sold to members of the Navy and Marine Corps.
``(e) Under such conditions as the Secretary may prescribe,
exterior articles of uniform may be sold to a person who has
been discharged honorably or under honorable conditions from
the Navy or Marine Corps, at the prices at which like
articles are sold to members of the Navy or Marine Corps.
This subsection does not modify sections 772 or 773 of this
title.
``(f) Under regulations prescribed by the Secretary,
payment for subsistence supplies shall be made in cash or by
commercial credit.
``(g)(1) The Secretary may provide for the procurement and
sale of stores designated by the Secretary to such civilian
officers and employees of the United States, and such other
persons, as the Secretary considers proper--
``(A) at military installations outside the United States;
and
``(B) subject to paragraph (2), at military installations
inside the United States where the Secretary determines that
it is impracticable for those civilian officers, employees,
and persons to obtain such stores from commercial enterprises
without impairing the efficient operation of military
activities.
``(2) Sales to civilian officers and employees inside the
United States may be made under paragraph (1) only to
civilian officers and employees residing within military
installations.
``(h) Appropriations for subsistence of the Navy or Marine
Corps may be applied to the purchase of subsistence supplies
for sale to members of the Navy and Marine Corps on active
duty for the use of such members and their families.''.
(2) The table of sections at the beginning of chapter 651
of such title is amended by adding at the end the following:

``7606. Subsistence and other supplies: members of armed forces;
veterans; executive or military departments and
employees; prices.''.

(b) Conforming Amendments for Other Armed Forces.--(1)
Section 4621 of such title is amended--
(A) by striking out ``The branch, office, or officer
designated by the Secretary of the Army'' in subsection (a)
and inserting in lieu thereof ``The Secretary of the Army'';
(B) by striking out ``The branch, office, or officer
designated by the Secretary'' both places it appears in
subsections (b) and (c) and inserting in lieu thereof ``The
Secretary''; and

[[Page H381]]

(C) by inserting before the period at the end of subsection
(f) the following: ``or by commercial credit''.
(2) Section 9621 of such title is amended--
(A) by striking out ``The Air Force shall'' in subsection
(b) and inserting in lieu thereof ``The Secretary shall'';
and
(B) by inserting before the period at the end of subsection
(f) the following: ``or by commercial credit''.

SEC. 376. PERSONNEL SERVICES AND LOGISTICAL SUPPORT FOR
CERTAIN ACTIVITIES HELD ON MILITARY
INSTALLATIONS.

Section 2544 of title 10, United States Code, is amended--
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f) the following new
subsection:
``(g) In the case of a Boy Scout Jamboree held on a
military installation, the Secretary of Defense may provide
personnel services and logistical support at the military
installation in addition to the support authorized under
subsections (a) and (d).''.

SEC. 377. RETENTION OF MONETARY AWARDS.

(a) Monetary Awards.--Chapter 155 of title 10, United
States Code, is amended by adding at the end the following
new section:

``Sec. 2610. Competitions for excellence: acceptance of
monetary awards

``(a) Acceptance Authorized.--The Secretary of Defense may
accept a monetary award given to the Department of Defense by
a nongovernmental entity as a result of the participation of
the Department in a competition carried out to recognize
excellence or innovation in providing services or
administering programs.
``(b) Disposition of Awards.--A monetary award accepted
under subsection (a) shall be credited to one or more
nonappropriated fund accounts supporting morale, welfare, and
recreation activities for the command, installation, or other
activity that is recognized for the award. Amounts so
credited may be expended only for such activities.
``(c) Incidental Expenses.--Subject to such limitations as
may be provided in appropriation Acts, appropriations
available to the Department of Defense may be used to pay
incidental expenses incurred by the Department to participate
in a competition described in subsection (a) or to accept a
monetary award under this section.
``(d) Regulations and Reporting.--(1) The Secretary shall
prescribe regulations to determine the disposition of
monetary awards accepted under this section and the payment
of incidental expenses under subsection (c).
``(2) At the end of each year, the Secretary shall submit
to Congress a report for that year describing the disposition
of monetary awards accepted under this section and the
payment of incidental expenses under subsection (c).
``(e) Termination.--The authority of the Secretary under
this section shall expire two years after the date of the
enactment of the National Defense Authorization Act for
Fiscal Year 1996.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2610. Competitions for excellence: acceptance of monetary awards.''.

SEC. 378. PROVISION OF EQUIPMENT AND FACILITIES TO ASSIST IN
EMERGENCY RESPONSE ACTIONS.

Section 372 of title 10, United States Code, is amended--
(1) by inserting ``(a) In General.--'' before ``The
Secretary of Defense''; and
(2) by adding at the end the following new subsection:
``(b) Emergencies Involving Chemical and Biological
Agents.--(1) In addition to equipment and facilities
described in subsection (a), the Secretary may provide an
item referred to in paragraph (2) to a Federal, State, or
local law enforcement or emergency response agency to prepare
for or respond to an emergency involving chemical or
biological agents if the Secretary determines that the item
is not reasonably available from another source.
``(2) An item referred to in paragraph (1) is any material
or expertise of the Department of Defense appropriate for use
in preparing for or responding to an emergency involving
chemical or biological agents, including the following:
``(A) Training facilities.
``(B) Sensors.
``(C) Protective clothing.
``(D) Antidotes.''.

SEC. 379. REPORT ON DEPARTMENT OF DEFENSE MILITARY AND CIVIL
DEFENSE PREPAREDNESS TO RESPOND TO EMERGENCIES
RESULTING FROM A CHEMICAL, BIOLOGICAL,
RADIOLOGICAL, OR NUCLEAR ATTACK.

(a) Report.--(1) Not later than March 1, 1996, the
Secretary of Defense and the Secretary of Energy shall submit
to Congress a joint report on the military and civil defense
plans and programs of the Department of Defense to prepare
for and respond to the effects of an emergency in the United
States resulting from a chemical, biological, radiological,
or nuclear attack on the United States (hereinafter in this
section referred to as an ``attack-related civil defense
emergency'').
(2) The report shall be prepared in consultation with the
Director of the Federal Emergency Management Agency.
(b) Content of Report.--The report shall include the
following:
(1) A discussion of the military and civil defense plans
and programs of the Department of Defense for preparing for
and responding to an attack-related civil defense emergency
arising from an attack of a type for which the Department of
Defense has a primary responsibility to respond.
(2) A discussion of the military and civil defense plans
and programs of the Department of Defense for preparing for
and providing a response to an attack-related civil defense
emergency arising from an attack of a type for which the
Department of Defense has responsibility to provide a
supporting response.
(3) A description of any actions, and any recommended
legislation, that the Secretaries consider necessary for
improving the preparedness of the Department of Defense to
respond effectively to an attack-related civil defense
emergency.
TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS
Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

(a) Fiscal Year 1996.--The Armed Forces are authorized
strengths for active duty personnel as of September 30, 1996,
as follows:
(1) The Army, 495,000, of which not more than 81,300 may be
commissioned officers.
(2) The Navy, 428,340, of which not more than 58,870 may be
commissioned officers.
(3) The Marine Corps, 174,000, of which not more than
17,978 may be commissioned officers.
(4) The Air Force, 388,200, of which not more than 75,928
may be commissioned officers.
(b) Floor on End Strengths.--(1) Chapter 39 of title 10,
United States Code, is amended by adding at the end the
following new section:

``Sec. 691. Permanent end strength levels to support two
major regional contingencies

``(a) The end strengths specified in subsection (b) are the
minimum strengths necessary to enable the armed forces to
fulfill a national defense strategy calling for the United
States to be able to successfully conduct two nearly
simultaneous major regional contingencies.
``(b) Unless otherwise provided by law, the number of
members of the armed forces (other than the Coast Guard) on
active duty at the end of any fiscal year shall be not less
than the following:
``(1) For the Army, 495,000.
``(2) For the Navy, 395,000.
``(3) For the Marine Corps, 174,000.
``(4) For the Air Force, 381,000.
``(c) No funds appropriated to the Department of Defense
may be used to implement a reduction of the active duty end
strength for any of the armed forces for any fiscal year
below the level specified in subsection (b) unless the
Secretary of Defense submits to Congress notice of the
proposed lower end strength levels and a justification for
those levels. No action may then be taken to implement such a
reduction for that fiscal year until the end of the six-month
period beginning on the date of the receipt of such notice by
Congress.
``(d) For a fiscal year for which the active duty end
strength authorized by law pursuant to section 115(a)(1)(A)
of this title for any of the armed forces is identical to the
number applicable to that armed force under subsection (b),
the Secretary of Defense may reduce that number by not more
than 0.5 percent.
``(e) The number of members of the armed forces on active
duty shall be counted for purposes of this section in the
same manner as applies under section 115(a)(1) of this
title.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``691. Permanent end strength levels to support two major regional
contingencies.''.

(c) Active Component End Strength Flexibility.--Section
115(c)(1) of title 10, United States Code, is amended by
striking out ``0.5 percent'' and inserting in lieu thereof
``1 percent''.

SEC. 402. TEMPORARY VARIATION IN DOPMA AUTHORIZED END
STRENGTH LIMITATIONS FOR ACTIVE DUTY AIR FORCE
AND NAVY OFFICERS IN CERTAIN GRADES.

(a) Air Force Officers.--In the administration of the
limitation under section 523(a)(1) of title 10, United States
Code, for fiscal years 1996 and 1997, the numbers applicable
to officers of the Air Force serving on active duty in the
grades of major, lieutenant colonel, and colonel shall be the
numbers set forth for that fiscal year in the following table
(rather than the numbers determined in accordance with the
table in that section):

------------------------------------------------------------------------
Number of officers who may be
serving on active duty in the
grade of:
Fiscal year: ---------------------------------
Lieutenant
Major colonel Colonel
------------------------------------------------------------------------
1996.................................. 15,566 9,876 3,609
1997.................................. 15,645 9,913 3,627
------------------------------------------------------------------------

(b) Navy Officers.--In the administration of the limitation
under section 523(a)(2) of title 10, United States Code, for
fiscal years 1996 and 1997, the numbers applicable to
officers of the Navy serving on active duty in the grades of
lieutenant commander, commander, and captain shall be the
numbers set forth for that fiscal year in the following

[[Page H382]]
table (rather than the numbers determined in accordance with the table
in that section):

------------------------------------------------------------------------
Number of officers who may be
serving on active duty in the
grade of:
Fiscal year: ---------------------------------
Lieutenant
commander Commander Captain
------------------------------------------------------------------------
1996.................................. 11,924 7,390 3,234
1997.................................. 11,732 7,297 3,188
------------------------------------------------------------------------

SEC. 403. CERTAIN GENERAL AND FLAG OFFICERS AWAITING
RETIREMENT NOT TO BE COUNTED.

(a) Distribution of Officers on Active Duty in General and
Flag Officer Grades.--Section 525 of title 10, United States
Code, is amended by adding at the end the following new
subsection:
``(d) An officer continuing to hold the grade of general or
admiral under section 601(b)(4) of this title after relief
from the position of Chairman of the Joint Chiefs of Staff,
Chief of Staff of the Army, Chief of Naval Operations, Chief
of Staff of the Air Force, or Commandant of the Marine Corps
shall not be counted for purposes of this section.''.
(b) Number of Officers on Active Duty in Grade of General
or Admiral.--Section 528(b) of such title is amended--
(1) by inserting ``(1)'' after ``(b)''; and
(2) by adding at the end the following:
``(2) An officer continuing to hold the grade of general or
admiral under section 601(b)(4) of this title after relief
from the position of Chairman of the Joint Chiefs of Staff,
Chief of Staff of the Army, Chief of Naval Operations,
Chief of Staff of the Air Force, or Commandant of the
Marine Corps shall not be counted for purposes of this
section.''.
(c) Clarification.--Section 601(b) of such title is
amended--
(1) in the matter preceding paragraph (1), by striking out
``of importance and responsibility designated'' and inserting
in lieu thereof ``designated under subsection (a) or by
law'';
(2) in paragraph (1), by striking out ``of importance and
responsibility'';
(3) in paragraph (2), by striking out ``designating'' and
inserting in lieu thereof ``designated under subsection (a)
or by law''; and
(4) in paragraph (4), by inserting ``under subsection (a)
or by law'' after ``designated''.
Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

(a) Fiscal Year 1996.--The Armed Forces are authorized
strengths for Selected Reserve personnel of the reserve
components as of September 30, 1996, as follows:
(1) The Army National Guard of the United States, 373,000.
(2) The Army Reserve, 230,000.
(3) The Naval Reserve, 98,894.
(4) The Marine Corps Reserve, 42,274.
(5) The Air National Guard of the United States, 112,707.
(6) The Air Force Reserve, 73,969.
(7) The Coast Guard Reserve, 8,000.
(b) Waiver Authority.--The Secretary of Defense may vary
the end strength authorized by subsection (a) by not more
than 2 percent.
(c) Adjustments.--The end strengths prescribed by
subsection (a) for the Selected Reserve of any reserve
component for a fiscal year shall be proportionately reduced
by--
(1) the total authorized strength of units organized to
serve as units of the Selected Reserve of such component
which are on active duty (other than for training) at the end
of the fiscal year, and
(2) the total number of individual members not in units
organized to serve as units of the Selected Reserve of such
component who are on active duty (other than for training or
for unsatisfactory participation in training) without their
consent at the end of the fiscal year.

Whenever such units or such individual members are released
from active duty during any fiscal year, the end strength
prescribed for such fiscal year for the Selected Reserve of
such reserve component 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
SUPPORT OF THE RESERVES.

Within the end strengths prescribed in section 411(a), the
reserve components of the Armed Forces are authorized, as of
September 30, 1996, the following number of Reserves to be
serving on full-time active duty or full-time duty, in the
case of members of the National Guard, for the purpose of
organizing, administering, recruiting, instructing, or
training the reserve components:
(1) The Army National Guard of the United States, 23,390.
(2) The Army Reserve, 11,575.
(3) The Naval Reserve, 17,587.
(4) The Marine Corps Reserve, 2,559.
(5) The Air National Guard of the United States, 10,066.
(6) The Air Force Reserve, 628.

SEC. 413. COUNTING OF CERTAIN ACTIVE COMPONENT PERSONNEL
ASSIGNED IN SUPPORT OF RESERVE COMPONENT
TRAINING.

Section 414(c) of the National Defense Authorization Act
for Fiscal Years 1992 and 1993 (Public Law 102-190; 10 U.S.C.
12001 note) is amended--
(1) by inserting ``(1)'' before ``The Secretary''; and
(2) by adding at the end the following new paragraph:
``(2) The Secretary of Defense may count toward the number
of active component personnel required under paragraph (1) to
be assigned to serve as advisers under the program under this
section any active component personnel who are assigned to an
active component unit (A) that was established principally
for the purpose of providing dedicated training support to
reserve component units, and (B) the primary mission of which
is to provide such dedicated training support.''.

SEC. 414. INCREASE IN NUMBER OF MEMBERS IN CERTAIN GRADES
AUTHORIZED TO SERVE ON ACTIVE DUTY IN SUPPORT
OF THE RESERVES.

(a) Officers.--The table in section 12011(a) of title 10,
United States Code, is amended to read as follows:

------------------------------------------------------------------------
Air Marine
``Grade Army Navy Force Corps
------------------------------------------------------------------------
Major or Lieutenant Commander....... 3,219 1,071 643 140
Lieutenant Colonel or Commander..... 1,524 520 672 90
Colonel or Navy Captain............. 412 188 274 30''.
------------------------------------------------------------------------

(b) Senior Enlisted Members.--The table in section 12012(a)
of such title is amended to read as follows:

------------------------------------------------------------------------
Air Marine
``Grade Army Navy Force Corps
------------------------------------------------------------------------
E-9................................. 603 202 366 20
E-8................................. 2,585 429 890 94''.
------------------------------------------------------------------------

SEC. 415. RESERVES ON ACTIVE DUTY IN SUPPORT OF COOPERATIVE
THREAT REDUCTION PROGRAMS NOT TO BE COUNTED.

Section 115(d) of title 10, United States Code, is amended
by adding at the end the following:
``(8) Members of the Selected Reserve of the Ready Reserve
on active duty for more that 180 days to support programs
described in section 1203(b) of the Cooperative Threat
Reduction Act of 1993 (title XII of Public Law 103-160; 22
U.S.C. 5952(b)).''.

SEC. 416. RESERVES ON ACTIVE DUTY FOR MILITARY-TO-MILITARY
CONTACTS AND COMPARABLE ACTIVITIES NOT TO BE
COUNTED.

Section 168 of title 10, United States Code, is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection (f):
``(f) Active Duty End Strengths.--(1) A member of a reserve
component referred to in paragraph (2) shall not be counted
for purposes of the following personnel strength limitations:
``(A) The end strength for active-duty personnel authorized
pursuant to section 115(a)(1) of this title for the fiscal
year in which the member carries out the activities referred
to in paragraph (2).
``(B) The authorized daily average for members in pay
grades E-8 and E-9 under section 517 of this title for the
calendar year in which the member carries out such
activities.
``(C) The authorized strengths for commissioned officers
under section 523 of this title for the fiscal year in which
the member carries out such activities.
``(2) A member of a reserve component referred to in
paragraph (1) is any member on active duty under an order to
active duty for 180 days or more who is engaged in activities
authorized under this section.''.
Subtitle C--Military Training Student Loads

SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.

(a) In General.--For fiscal year 1996, the components of
the Armed Forces are authorized average military training
loads as follows:
(1) The Army, 75,013.
(2) The Navy, 44,238.
(3) The Marine Corps, 26,095.
(4) The Air Force, 33,232.
(b) Scope.--The average military training student loads
authorized for an armed force under subsection (a) apply to
the active and reserve components of that armed force.
(c) Adjustments.--The average military training student
loads authorized in subsection (a) shall be adjusted
consistent with the end strengths authorized in subtitles A
and B. The Secretary of Defense shall prescribe the manner in
which such adjustments shall be apportioned.
Subtitle D--Authorization of Appropriations

SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY
PERSONNEL.

There is hereby authorized to be appropriated to the
Department of Defense for military personnel for fiscal year
1996 a total of $69,191,008,000. The authorization in the
preceding sentence supersedes any other authorization of
appropriations (definite or indefinite) for such purpose for
fiscal year 1996.

SEC. 432. AUTHORIZATION FOR INCREASE IN ACTIVE-DUTY END
STRENGTHS.

(a) Authorization.--There is hereby authorized to be
appropriated to the Department of Defense for fiscal year
1996 for military personnel the sum of $112,000,000. Any
amount appropriated pursuant to this section shall be
allocated, in such manner as the Secretary of Defense
prescribes, among appropriations for active-component
military personnel for that fiscal year and shall be
available only to increase the number of members of the Armed
Forces on active duty during that fiscal year (compared to
the number of members that would be on active duty but for
such appropriation).

[[Page H383]]

(b) Effect on End Strengths.--The end-strength
authorizations in section 401 shall each be deemed to be
increased by such number as necessary to take account of
additional members of the Armed Forces authorized by the
Secretary of Defense pursuant to subsection (a).
TITLE V--MILITARY PERSONNEL POLICY
Subtitle A--Officer Personnel Policy

SEC. 501. JOINT OFFICER MANAGEMENT.

(a) Critical Joint Duty Assignment Positions.--Section
661(d)(2)(A) of title 10, United States Code, is amended by
striking out ``1,000'' and inserting in lieu thereof ``800''.
(b) Additional Qualifying Joint Service.--Section 664 of
such title is amended by adding at the end the following:
``(i) Joint Duty Credit for Certain Joint Task Force
Assignments.--(1) In the case of an officer who completes
service in a qualifying temporary joint task force
assignment, the Secretary of Defense, with the advice of the
Chairman of the Joint Chiefs of Staff, may (subject to the
criteria prescribed under paragraph (4)) grant the officer--
``(A) credit for having completed a full tour of duty in a
joint duty assignment; or
``(B) credit countable for determining cumulative service
in joint duty assignments.
``(2)(A) For purposes of paragraph (1), a qualifying
temporary joint task force assignment of an officer is a
temporary assignment, any part of which is performed by the
officer on or after the date of the enactment of this
subsection--
``(i) to the headquarters staff of a United States joint
task force that is part of a unified command or the United
States element of the headquarters staff of a multinational
force; and
``(ii) with respect to which the Secretary of Defense
determines that service of the officer in that assignment is
equivalent to that which would be gained by the officer in a
joint duty assignment.
``(B) An officer may not be granted credit under this
subsection unless the officer is recommended for such credit
by the Chairman of the Joint Chiefs of Staff.
``(3) Credit under paragraph (1) (including a determination
under paragraph (2)(A)(ii) and a recommendation under
paragraph (2)(B) with respect to such credit) may be granted
only on a case-by-case basis in the case of an individual
officer.
``(4) The Secretary of Defense shall prescribe by
regulation criteria for determining whether an officer may be
granted credit under paragraph (1) with respect to service in
a qualifying temporary joint task force assignment. The
criteria shall apply uniformly among the armed forces and
shall include the following requirements:
``(A) For an officer to be credited as having completed a
full tour of duty in a joint duty assignment, the length of
the officer's service in the qualifying temporary joint task
force assignment must meet the requirements of subsection (a)
or (c).
``(B) For an officer to be credited with service for
purposes of determining cumulative service in joint duty
assignments, the officer must serve at least 90 consecutive
days in the qualifying temporary joint task force assignment.
``(C) The service must be performed in support of a mission
that is directed by the President or that is assigned by the
President to United States forces in the joint task force
involved.
``(D) The joint task force must be constituted or
designated by the Secretary of Defense or by the commander of
a combatant command or of another force.
``(E) The joint task force must conduct combat or combat-
related operations in a unified action under joint or
multinational command and control.
``(5) Officers for whom joint duty credit is granted
pursuant to this subsection may not be taken into account for
the purposes of any of the following provisions of this
title: section 661(d)(1), section 662(a)(3), section 662(b),
subsection (a) of this section, and paragraphs (7), (8), (9),
(11), and (12) of section 667.
``(6) In the case of an officer credited with having
completed a full tour of duty in a joint duty assignment
pursuant to this subsection, the Secretary of Defense may
waive the requirement in paragraph (1)(B) of section 661(c)
of this title that the tour of duty in a joint duty
assignment be performed after the officer completes a program
of education referred to in paragraph (1)(A) of that section.
The provisions of subparagraphs (C) and (D) of section
661(c)(3) of this title shall apply to such a waiver in the
same manner as to a waiver under subparagraph (A) of that
section.''.
(c) Information in Annual Report.--Section 667 of such
title is amended by striking out paragraph (16) and inserting
after paragraph (15) the following new paragraph (16):
``(16) The number of officers granted credit for service in
joint duty assignments under section 664(i) of this title
and--
``(A) of those officers--
``(i) the number of officers credited with having completed
a tour of duty in a joint duty assignment; and
``(ii) the number of officers granted credit for purposes
of determining cumulative service in joint duty assignments;
and
``(B) the identity of each operation for which an officer
has been granted credit pursuant to section 664(i) of this
title and a brief description of the mission of the
operation.''.
(d) Applicability of Limitation on Waiver Authority.--
Section 661(c)(3) of such title is amended--
(1) in the third sentence of subparagraph (D), by striking
out ``The total number'' and inserting in lieu thereof ``In
the case of officers in grades below brigadier general and
rear admiral (lower half), the total number''; and
(2) by adding at the end the following new subparagraph:
``(E) There may not be more than 32 general and flag
officers on active duty at the same time who were selected
for the joint specialty while holding a general or flag
officer grade and for whom a waiver was granted under this
subparagraph.''.
(e) Length of Second Joint Tour.--Section 664 of such title
is amended--
(1) in subsection (e)(2), by inserting after subparagraph
(B) the following:
``(C) Service described in subsection (f)(6), except that
no more than 10 percent of all joint duty assignments shown
on the list published pursuant to section 668(b)(2)(A) of
this title may be so excluded in any year.''; and
(2) in subsection (f)--
(A) in the matter preceding paragraph (1), by striking out
``completion of--'' and inserting in lieu thereof
``completion of any of the following:'';
(B) by striking out ``a'' at the beginning of paragraphs
(1), (2), (4), and (5) and inserting in lieu thereof ``A'';
(C) by striking out ``cumulative'' in paragraph (3) and
inserting in lieu thereof ``Cumulative'';
(D) by striking out the semicolon at the end of paragraphs
(1), (2), and (3) and ``; or'' at the end of paragraph (4)
and inserting in lieu thereof a period; and
(E) by adding at the end the following:
``(6) A second joint duty assignment that is less than the
period required under subsection (a), but not less than two
years, without regard to whether a waiver was granted for
such assignment under subsection (b).''.
(f) Technical Amendment.--Section 664(e)(1) of such title
is amended by striking out ``(after fiscal year 1990)''.

SEC. 502. RETIRED GRADE FOR OFFICERS IN GRADES ABOVE MAJOR
GENERAL AND REAR ADMIRAL.

(a) Applicability of Time-in-Grade Requirements.--Section
1370 of title 10, United States Code, is amended--
(1) in subsection (a)(2)(A), by striking out ``and below
lieutenant general or vice admiral''; and
(2) in the first sentence of subsection (d)(2)(B), as added
effective October 1, 1996, by section 1641 of the Reserve
Officer Personnel Management Act (title XVI of Public Law
103-337; 108 Stat. 2968), by striking out ``and below
lieutenant general or vice admiral''.
(b) Retirement in Highest Grade Upon Certification of
Satisfactory Service.--Subsection (c) of such section is
amended to read as follows:
``(c) Officers in O-9 and O-10 Grades.--(1) An officer who
is serving in or has served in the grade of general or
admiral or lieutenant general or vice admiral may be retired
in that grade under subsection (a) only after the Secretary
of Defense certifies in writing to the President and Congress
that the officer served on active duty satisfactorily in that
grade.
``(2) In the case of an officer covered by paragraph (1),
the three-year service-in-grade requirement in paragraph
(2)(A) of subsection (a) may not be reduced or waived under
that subsection--
``(A) while the officer is under investigation for alleged
misconduct; or
``(B) while there is pending the disposition of an adverse
personnel action against the officer for alleged
misconduct.''.
(c) Repeal of Superseded Provisions.--Sections 3962(a),
5034, 5043(c), and 8962(a) of such title are repealed.
(d) Technical and Clerical Amendments.--(1) Sections
3962(b) and 8962(b) of such title are amended by striking out
``(b) Upon'' and inserting in lieu thereof ``Upon''.
(2) The table of sections at the beginning of chapter 505
of such title is amended by striking out the item relating to
section 5034.
(e) Effective Date for Amendment to Provision Taking Effect
in 1996.--The amendment made by subsection (a)(2) shall take
effect on October 1, 1996, immediately after subsection (d)
of section 1370 of title 10, United States Code, takes effect
under section 1691(b)(1) of the Reserve Officer Personnel
Management Act (108 Stat. 3026).
(f) Preservation of Applicability of Limitation.--Section
1370(a)(2)(C) of title 10, United States Code, is amended by
striking out ``The number of officers in an armed force in a
grade'' and inserting in lieu thereof ``In the case of a
grade below the grade of lieutenant general or vice admiral,
the number of members of one of the armed forces in that
grade''.
(g) Stylistic Amendments.--Section 1370 of title 10, United
States Code, is further amended--
(1) in subsection (a), by striking out ``(a)(1)'' and
inserting in lieu thereof ``(a) Rule for Retirement in
Highest Grade Held Satisfactorily.--(1)'';
(2) in subsection (b), by inserting ``Retirement in Next
Lower Grade.--'' after ``(b)''; and
(3) in subsection (d), as added effective October 1, 1996,
by section 1641 of the Reserve Officer Personnel Management
Act (title XVI of Public Law 103-337; 108 Stat. 2968), by
striking out ``(d)(1)'' and inserting in lieu thereof ``(d)
Reserve Officers.--(1)''.

SEC. 503. WEARING OF INSIGNIA FOR HIGHER GRADE BEFORE
PROMOTION.

(a) Authority and Limitations.--(1) Chapter 45 of title 10,
United States Code, is

[[Page H384]]
amended by adding at the end the following new section:

``Sec. 777. Wearing of insignia of higher grade before
promotion (frocking): authority; restrictions

``(a) Authority.--An officer who has been selected for
promotion to the next higher grade may be authorized, under
regulations and policies of the Department of Defense and
subject to subsection (b), to wear the insignia for that next
higher grade. An officer who is so authorized to wear the
insignia of the next higher grade is said to be `frocked' to
that grade.
``(b) Restrictions.--An officer may not be authorized to
wear the insignia for a grade as described in subsection (a)
unless--
``(1) the Senate has given its advice and consent to the
appointment of the officer to that grade; and
``(2) the officer is serving in, or has received orders to
serve in, a position for which that grade is authorized.
``(c) Benefits Not To Be Construed as Accruing.--(1)
Authority provided to an officer as described in subsection
(a) to wear the insignia of the next higher grade may not be
construed as conferring authority for that officer to--
``(A) be paid the rate of pay provided for an officer in
that grade having the same number of years of service as that
officer; or
``(B) assume any legal authority associated with that
grade.
``(2) The period for which an officer wears the insignia of
the next higher grade under such authority may not be taken
into account for any of the following purposes:
``(A) Seniority in that grade.
``(B) Time of service in that grade.
``(d) Limitation on Number of Officers Frocked to Specified
Grades.--(1) The total number of colonels and Navy captains
on the active-duty list who are authorized as described in
subsection (a) to wear the insignia for the grade of
brigadier general or rear admiral (lower half), as the case
may be, may not exceed the following:
``(A) During fiscal years 1996 and 1997, 75.
``(B) During fiscal year 1998, 55.
``(C) After fiscal year 1998, 35.
``(2) The number of officers of an armed force on the
active-duty list who are authorized as described in
subsection (a) to wear the insignia for a grade to which a
limitation on total number applies under section 523(a) of
this title for a fiscal year may not exceed 1 percent of the
total number provided for the officers in that grade in that
armed force in the administration of the limitation under
that section for that fiscal year.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``777. Wearing of insignia of higher grade before promotion (frocking):
authority; restrictions.''.

(b) Temporary Variation of Limitations on Numbers of
Frocked Officers.--In the administration of section 777(d)(2)
of title 10, United States Code (as added by subsection (a)),
the percent limitation applied under that section for fiscal
year 1996 shall be 2 percent (instead of 1 percent).
(c) Report.--Not later than September 1, 1996, the
Secretary of Defense shall submit to Congress a report
providing the assessment of the Secretary on the practice,
known as ``frocking'', of authorizing an officer who has been
selected for promotion to the next higher grade to wear the
insignia for that next higher grade. The report shall include
the Secretary's assessment of the appropriate number, if any,
of colonels and Navy captains to be eligible under section
777(d)(1) of title 10, United States Code (as added by
subsection (a)), to wear the insignia for the grade of
brigadier general or rear admiral (lower half).

SEC. 504. AUTHORITY TO EXTEND TRANSITION PERIOD FOR OFFICERS
SELECTED FOR EARLY RETIREMENT.

(a) Selective Retirement of Warrant Officers.--Section 581
of title 10, United States Code, is amended by adding at the
end the following new subsection:
``(e) The Secretary concerned may defer for not more than
90 days the retirement of an officer otherwise approved for
early retirement under this section in order to prevent a
personal hardship to the officer or for other humanitarian
reasons. Any such deferral shall be made on a case-by-case
basis considering the circumstances of the case of the
particular officer concerned. The authority of the Secretary
to grant such a deferral may not be delegated.''.
(b) Selective Early Retirement of Active-Duty Officers.--
Section 638(b) of title 10, United States Code, is amended by
adding at the end the following new paragraph:
``(3) The Secretary concerned may defer for not more than
90 days the retirement of an officer otherwise approved for
early retirement under this section or section 638a of this
title in order to prevent a personal hardship to the officer
or for other humanitarian reasons. Any such deferral shall be
made on a case-by-case basis considering the circumstances of
the case of the particular officer concerned. The authority
of the Secretary to grant such a deferral may not be
delegated.''.

SEC. 505. ARMY OFFICER MANNING LEVELS.

(a) In General.--(1) Chapter 331 of title 10, United States
Code, is amended by inserting after the table of sections the
following new section:

``Sec. 3201. Officers on active duty: minimum strength based
on requirements

``(a) The Secretary of the Army shall ensure that
(beginning with fiscal year 1999) the strength at the end of
each fiscal year of officers on active duty is sufficient to
enable the Army to meet at least that percentage of the
programmed manpower structure for officers for the active
component of the Army that is provided for in the most recent
Defense Planning Guidance issued by the Secretary of Defense.
``(b) The number of officers on active duty shall be
counted for purposes of this section in the same manner as
applies under section 115(a)(1) of this title.
``(c) In this section:
``(1) The term `programmed manpower structure' means the
aggregation of billets describing the full manpower
requirements for units and organizations in the programmed
force structure.
``(2) The term `programmed force structure' means the set
of units and organizations that exist in the current year and
that is planned to exist in each future year under the then-
current Future-Years Defense Program.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after ``Sec.'' the following new
item:

``3201. Officers on active duty: minimum strength based on
requirements.''.

(b) Assistance in Accomplishing Requirement.--The Secretary
of Defense shall provide to the Army sufficient personnel and
financial resources to enable the Army to meet the
requirement specified in section 3201 of title 10, United
States Code, as added by subsection (a).

SEC. 506. AUTHORITY FOR MEDICAL DEPARTMENT OFFICERS OTHER
THAN PHYSICIANS TO BE APPOINTED AS SURGEON
GENERAL.

(a) Surgeon General of the Army.--The third sentence of
section 3036(b) of title 10, United States Code, is amended
by inserting after ``The Surgeon General'' the following:
``may be appointed from officers in any corps of the Army
Medical Department and''.
(b) Surgeon General of the Navy.--Section 5137 of such
title is amended--
(1) in the first sentence of subsection (a), by striking
out ``in the Medical Corps'' and inserting in lieu thereof
``in any corps of the Navy Medical Department''; and
(2) in subsection (b), by striking out ``in the Medical
Corps'' and inserting in lieu thereof ``who is qualified to
be the Chief of the Bureau of Medicine and Surgery''.
(c) Surgeon General of the Air Force.--The first sentence
of section 8036 of such title is amended by striking out
``designated as medical officers under section 8067(a) of
this title'' and inserting in lieu thereof ``in the Air Force
medical department''.

SEC. 507. DEPUTY JUDGE ADVOCATE GENERAL OF THE AIR FORCE.

(a) Tenure and Grade of Deputy Judge Advocate General.--
Section 8037(d)(1) of such title is amended--
(1) in the second sentence, by striking out ``two years''
and inserting in lieu thereof ``four years''; and
(2) by striking out the last sentence and inserting in lieu
thereof the following: ``An officer appointed as Deputy Judge
Advocate General who holds a lower regular grade shall be
appointed in the regular grade of major general.''.
(b) Effective Date.--The amendments made by subsection (a)
apply to any appointment to the position of Deputy Judge
Advocate General of the Air Force that is made after the date
of the enactment of this Act.

SEC. 508. AUTHORITY FOR TEMPORARY PROMOTIONS FOR CERTAIN NAVY
LIEUTENANTS WITH CRITICAL SKILLS.

(a) Extension of Authority.--Subsection (f) of section 5721
of title 10, United States Code, is amended by striking out
``September 30, 1995'' and inserting in lieu thereof
``September 30, 1996''.
(b) Limitation.--Such section is further amended--
(1) by redesignating subsection (f), as amended by
subsection (a), as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection (f):
``(f) Limitation on Number of Eligible Positions.--(1) An
appointment under this section may only be made for service
in a position designated by the Secretary of the Navy for
purposes of this section. The number of positions so
designated may not exceed 325.
``(2) Whenever the Secretary makes a change to the
positions designated under paragraph (1), the Secretary shall
submit notice of the change in writing to Congress.''.
(c) Report.--Not later than April 1, 1996, the Secretary of
Defense shall submit to Congress a report providing the
Secretary's assessment of that continuing need for the
promotion authority under section 5721 of title 10, United
States Code. The Secretary shall include in the report the
following:
(1) The nature and grade structure of the positions for
which such authority has been used.
(2) The cause or causes of the reported chronic shortages
of qualified personnel in the required grade to fill the
positions specified under paragraph (1).
(3) The reasons for the perceived inadequacy of the officer
promotion system (including ``below-the-zone'' selections) to
provide sufficient officers in the required grade to fill
those positions.
(4) The extent to which a bonus program or some other
program would be a more appropriate means of resolving the
reported chronic shortages in engineering positions.

[[Page H385]]

(d) Clerical Amendments.--Section 5721 of title 10, United
States Code, is amended as follows:
(1) Subsection (a) is amended by inserting ``Promotion
Authority for Certain Officer With Critical Skills.--'' after
``(a)''.
(2) Subsection (b) is amended by inserting ``Status of
Officers Appointed.--'' after ``(b)''.
(3) Subsection (c) is amended by inserting ``Board
Recommendation Required.--'' after ``(c)''.
(4) Subsection (d) is amended by inserting ``Acceptance and
Effective Date of Appointment.--'' after ``(d)''.
(5) Subsection (e) is amended by inserting ``Termination of
Appointment.--'' after ``(e)''.
(6) Subsection (g), as redesignated by subsection (b)(1),
is amended by inserting ``Termination of Appointment
Authority.--'' after ``(g)''.
(e) Effective Date.--Subsection (f) of section 5721 of
title 10, United States Code, as added by subsection (b)(2),
shall take effect at the end of the 30-day period beginning
on the date of the enactment of this Act and shall apply to
any appointment under that section after the end of such
period.

SEC. 509. RETIREMENT FOR YEARS OF SERVICE OF DIRECTORS OF
ADMISSIONS OF MILITARY AND AIR FORCE ACADEMIES.

(a) Military Academy.--(1) Section 3920 of title 10, United
States Code, is amended to read as follows:

``Sec. 3920. More than thirty years: permanent professors and
the Director of Admissions of the United States Military
Academy

``(a) The Secretary of the Army may retire an officer
specified in subsection (b) who has more than 30 years of
service as a commissioned officer.
``(b) Subsection (a) applies in the case of the following
officers:
``(1) Any permanent professor of the United States Military
Academy.
``(2) The Director of Admissions of the United States
Military Academy.''.
(2) The item relating to such section in the table of
sections at the beginning of chapter 367 of such title is
amended to read as follows:

``3920. More than thirty years: permanent professors and the Director
of Admissions of the United States Military Academy.''.

(b) Air Force Academy.--(1) Section 8920 of title 10,
United States Code, is amended to read as follows:

``Sec. 8920. More than thirty years: permanent professors and
the Director of Admissions of the United States Air Force
Academy

``(a) The Secretary of the Air Force may retire an officer
specified in subsection (b) who has more than 30 years of
service as a commissioned officer.
``(b) Subsection (a) applies in the case of the following
officers:
``(1) Any permanent professor of the United States Air
Force Academy.
``(2) The Director of Admissions of the United States Air
Force Academy.''.
(2) The item relating to such section in the table of
sections at the beginning of chapter 867 of such title is
amended to read as follows:

``8920. More than thirty years: permanent professors and the Director
of Admissions of the United States Air Force Academy.''.

Subtitle B--Matters Relating to Reserve Components

SEC. 511. EXTENSION OF CERTAIN RESERVE OFFICER MANAGEMENT
AUTHORITIES.

(a) Grade Determination Authority for Certain Reserve
Medical Officers.--Sections 3359(b) and 8359(b) of title 10,
United States Code, are each amended by striking out
``September 30, 1995'' and inserting in lieu thereof
``September 30, 1996''.
(b) Promotion Authority for Certain Reserve Officers
Serving on Active Duty.--Sections 3380(d) and 8380(d) of
title 10, United States Code, are each amended by striking
out ``September 30, 1995'' and inserting in lieu thereof
``September 30, 1996''.
(c) Years of Service for Mandatory Transfer to the Retired
Reserve.--Section 1016(d) of the Department of Defense
Authorization Act, 1984 (10 U.S.C. 3360) is amended by
striking out ``September 30, 1995'' and inserting in lieu
thereof ``September 30, 1996''.

SEC. 512. MOBILIZATION INCOME INSURANCE PROGRAM FOR MEMBERS
OF READY RESERVE.

(a) Establishment of Program.--(1) Subtitle E of title 10,
United States Code, is amended by inserting after chapter
1213 the following new chapter:

``CHAPTER 1214--READY RESERVE MOBILIZATION INCOME INSURANCE

``Sec.
``12521. Definitions.
``12522. Establishment of insurance program.
``12523. Risk insured.
``12524. Enrollment and election of benefits.
``12525. Benefit amounts.
``12526. Premiums.
``12527. Payment of premiums.
``12528. Reserve Mobilization Income Insurance Fund.
``12529. Board of Actuaries.
``12530. Payment of benefits.
``12531. Purchase of insurance.
``12532. Termination for nonpayment of premiums; forfeiture.

``Sec. 12521. Definitions

``In this chapter:
``(1) The term `insurance program' means the Ready Reserve
Mobilization Income Insurance Program established under
section 12522 of this title.
``(2) The term `covered service' means active duty
performed by a member of a reserve component under an order
to active duty for a period of more than 30 days which
specifies that the member's service--
``(A) is in support of an operational mission for which
members of the reserve components have been ordered to active
duty without their consent; or
``(B) is in support of forces activated during a period of
war declared by Congress or a period of national emergency
declared by the President or Congress.
``(3) The term `insured member' means a member of the Ready
Reserve who is enrolled for coverage under the insurance
program in accordance with section 12524 of this title.
``(4) The term `Secretary' means the Secretary of Defense.
``(5) The term `Department' means the Department of
Defense.
``(6) The term `Board of Actuaries' means the Department of
Defense Education Benefits Board of Actuaries referred to in
section 2006(e)(1) of this title.
``(7) The term `Fund' means the Reserve Mobilization Income
Insurance Fund established by section 12528(a) of this title.

``Sec. 12522. Establishment of insurance program

``(a) Establishment.--The Secretary shall establish for
members of the Ready Reserve (including the Coast Guard
Reserve) an insurance program to be known as the `Ready
Reserve Mobilization Income Insurance Program'.
``(b) Administration.--The insurance program shall be
administered by the Secretary. The Secretary may prescribe in
regulations such rules, procedures, and policies as the
Secretary considers necessary or appropriate to carry out the
insurance program.
``(c) Agreement With Secretary of Transportation.--The
Secretary and the Secretary of Transportation shall enter
into an agreement with respect to the administration of the
insurance program for the Coast Guard Reserve.

``Sec. 12523. Risk insured

``(a) In General.--The insurance program shall insure
members of the Ready Reserve against the risk of being
ordered into covered service.
``(b) Entitlement to Benefits.--(1) An insured member
ordered into covered service shall be entitled to payment of
a benefit for each month (and fraction thereof) of covered
service that exceeds 30 days of covered service, except that
no member may be paid under the insurance program for more
than 12 months of covered service served during any period of
18 consecutive months.
``(2) Payment shall be based solely on the insured status
of a member and on the period of covered service served by
the member. Proof of loss of income or of expenses incurred
as a result of covered service may not be required.

``Sec. 12524. Enrollment and election of benefits

``(a) Enrollment.--(1) Except as provided in subsection
(f), upon first becoming a member of the Ready Reserve, a
member shall be automatically enrolled for coverage under the
insurance program. An automatic enrollment of a member shall
be void if within 60 days after first becoming a member of
the Ready Reserve the member declines insurance under the
program in accordance with the regulations prescribed by the
Secretary.
``(2) Promptly after the insurance program is established,
the Secretary shall offer to members of the reserve
components who are then members of the Ready Reserve (other
than members ineligible under subsection (f)) an
opportunity to enroll for coverage under the insurance
program. A member who fails to enroll within 60 days after
being offered the opportunity shall be considered as
having declined to be insured under the program.
``(3) A member of the Ready Reserve ineligible to enroll
under subsection (f) shall be afforded an opportunity to
enroll upon being released from active duty in accordance
with regulations prescribed by the Secretary if the member
has not previously had the opportunity to be enrolled under
paragraph (1) or (2). A member who fails to enroll within 60
days after being afforded that opportunity shall be
considered as having declined to be insured under the
program.
``(b) Election of Benefit Amount.--The amount of a member's
monthly benefit under an enrollment shall be the basic
benefit under subsection (a) of section 12525 of this title
unless the member elects a different benefit under subsection
(b) of such section within 60 days after first becoming a
member of the Ready Reserve or within 60 days after being
offered the opportunity to enroll, as the case may be.
``(c) Elections Irrevocable.--(1) An election to decline
insurance pursuant to paragraph (1) or (2) of subsection (a)
is irrevocable.
``(2) The amount of coverage may not be increased after
enrollment.
``(d) Election To Terminate.--A member may terminate an
enrollment at any time.
``(e) Information To Be Furnished.--The Secretary shall
ensure that members referred to in subsection (a) are given a
written explanation of the insurance program and are advised
that they have the right to decline to be insured and, if not
declined, to elect coverage for a reduced benefit or an
enhanced benefit under subsection (b).

[[Page H386]]

``(f) Members Ineligible To Enroll.--Members of the Ready
Reserve serving on active duty (or full-time National Guard
duty) are not eligible to enroll for coverage under the
insurance program. The Secretary may define any additional
category of members of the Ready Reserve to be excluded from
eligibility to purchase insurance under this chapter.

``Sec. 12525. Benefit amounts

``(a) Basic Benefit.--The basic benefit for an insured
member under the insurance program is $1,000 per month (as
adjusted under subsection (d)).
``(b) Reduced and Enhanced Benefits.--Under the regulations
prescribed by the Secretary, a person enrolled for coverage
under the insurance program may elect--
``(1) a reduced coverage benefit equal to one-half the
amount of the basic benefit; or
``(2) an enhanced benefit in the amount of $1,500, $2,000,
$2,500, $3,000, $3,500, $4,000, $4,500, or $5,000 per month
(as adjusted under subsection (d)).
``(c) Amount for Partial Month.--The amount of insurance
payable to an insured member for any period of covered
service that is less than one month shall be determined by
multiplying \1/30\ of the monthly benefit rate for the member
by the number of days of the covered service served by the
member during such period.
``(d) Adjustment of Amounts.--(1) The Secretary shall
determine annually the effect of inflation on benefits and
shall adjust the amounts set forth in subsections (a) and
(b)(2) to maintain the constant dollar value of the benefit.
``(2) If the amount of a benefit as adjusted under
paragraph (1) is not evenly divisible by $10, the amount
shall be rounded to the nearest multiple of $10, except that
an amount evenly divisible by $5 but not by $10 shall be
rounded to the next lower amount that is evenly divisible by
$10.

``Sec. 12526. Premiums

``(a) Establishment of Rates.--(1) The Secretary, in
consultation with the Board of Actuaries, shall prescribe the
premium rates for insurance under the insurance program.
``(2) The Secretary shall prescribe a fixed premium rate
for each $1,000 of monthly insurance benefit. The premium
amount shall be equal to the share of the cost attributable
to insuring the member and shall be the same for all members
of the Ready Reserve who are insured under the insurance
program for the same benefit amount. The Secretary shall
prescribe the rate on the basis of the best available
estimate of risk and financial exposure, levels of
subscription by members, and other relevant factors.
``(b) Level Premiums.--The premium rate prescribed for the
first year of insurance coverage of an insured member shall
be continued without change for subsequent years of insurance
coverage, except that the Secretary, after consultation with
the Board of Actuaries, may adjust the premium rate in order
to fund inflation-adjusted benefit increases on an
actuarially sound basis.

``Sec. 12527. Payment of premiums

``(a) Methods of Payment.--(1) The monthly premium for
coverage of a member under the insurance program shall be
deducted and withheld from the insured member's pay for each
month.
``(2) An insured member who does not receive pay on a
monthly basis shall pay the Secretary directly the premium
amount applicable for the level of benefits for which the
member is insured.
``(b) Advance Pay for Premium.--The Secretary concerned may
advance to an insured member the amount equal to the first
insurance premium payment due under this chapter. The advance
may be paid out of appropriations for military pay. An
advance to a member shall be collected from the member either
by deducting and withholding the amount from basic pay
payable for the member or by collecting it from the member
directly. No disbursing or certifying officer shall be
responsible for any loss resulting from an advance under this
subsection.
``(c) Premiums To Be Deposited in Fund.--Premium amounts
deducted and withheld from the pay of insured members and
premium amounts paid directly to the Secretary shall be
credited monthly to the Fund.

``Sec. 12528. Reserve Mobilization Income Insurance Fund

``(a) Establishment.--There is established on the books of
the Treasury a fund to be known as the `Reserve Mobilization
Income Insurance Fund', which shall be administered by the
Secretary of the Treasury. The Fund shall be used for the
accumulation of funds in order to finance the liabilities of
the insurance program on an actuarially sound basis.
``(b) Assets of Fund.--There shall be deposited into the
Fund the following:
``(1) Premiums paid under section 12527 of this title.
``(2) Any amount appropriated to the Fund.
``(3) Any return on investment of the assets of the Fund.
``(c) Availability.--Amounts in the Fund shall be available
for paying insurance benefits under the insurance program.
``(d) Investment of Assets of Fund.--The Secretary of the
Treasury shall invest such portion of the Fund as is not in
the judgment of the Secretary of Defense required to meet
current liabilities. Such investments shall be in public debt
securities with maturities suitable to the needs of the Fund,
as determined by the Secretary of Defense, and bearing
interest at rates determined by the Secretary of the
Treasury, taking into consideration current market yields on
outstanding marketable obligations of the United States of
comparable maturities. The income on such investments shall
be credited to the Fund.
``(e) Annual Accounting.--At the beginning of each fiscal
year, the Secretary, in consultation with the Board of
Actuaries and the Secretary of the Treasury, shall determine
the following:
``(1) The projected amount of the premiums to be collected,
investment earnings to be received, and any transfers or
appropriations to be made for the Fund for that fiscal year.
``(2) The amount for that fiscal year of any cumulative
unfunded liability (including any negative amount or any gain
to the Fund) resulting from payments of benefits.
``(3) The amount for that fiscal year (including any
negative amount) of any cumulative actuarial gain or loss to
the Fund.

``Sec. 12529. Board of Actuaries

``(a) Actuarial Responsibility.--The Board of Actuaries
shall have the actuarial responsibility for the insurance
program.
``(b) Valuations and Premium Recommendations.--The Board of
Actuaries shall carry out periodic actuarial valuations of
the benefits under the insurance program and determine a
premium rate methodology for the Secretary to use in setting
premium rates for the insurance program. The Board shall
conduct the first valuation and determine a premium rate
methodology not later than six months after the insurance
program is established.
``(c) Effects of Changed Benefits.--If at the time of any
actuarial valuation under subsection (b) there has been a
change in benefits under the insurance program that has been
made since the last such valuation and such change in
benefits increases or decreases the present value of amounts
payable from the Fund, the Board of Actuaries shall determine
a premium rate methodology, and recommend to the Secretary a
premium schedule, for the liquidation of any liability (or
actuarial gain to the Fund) resulting from such change and
any previous such changes so that the present value of the
sum of the scheduled premium payments (or reduction in
payments that would otherwise be made) equals the cumulative
increase (or decrease) in the present value of such benefits.
``(d) Actuarial Gains or Losses.--If at the time of any
such valuation the Board of Actuaries determines that there
has been an actuarial gain or loss to the Fund as a result of
changes in actuarial assumptions since the last valuation or
as a result of any differences, between actual and expected
experience since the last valuation, the Board shall
recommend to the Secretary a premium rate schedule for the
amortization of the cumulative gain or loss to the Fund
resulting from such changes in assumptions and any previous
such changes in assumptions or from the differences in actual
and expected experience, respectively, through an increase or
decrease in the payments that would otherwise be made to the
Fund.
``(e) Insufficient Assets.--If at any time liabilities of
the Fund exceed assets of the Fund as a result of members of
the Ready Reserve being ordered to active duty as described
in section 12521(2) of this title, and funds are unavailable
to pay benefits completely, the Secretary shall request the
President to submit to Congress a request for a special
appropriation to cover the unfunded liability. If
appropriations are not made to cover an unfunded liability in
any fiscal year, the Secretary shall reduce the amount of the
benefits paid under the insurance program to a total amount
that does not exceed the assets of the Fund expected to
accrue by the end of such fiscal year. Benefits that cannot
be paid because of such a reduction shall be deferred and may
be paid only after and to the extent that additional funds
become available.
``(f) Definition of Present Value.--The Board of Actuaries
shall define the term `present value' for purposes of this
subsection.

``Sec. 12530. Payment of benefits

``(a) Commencement of Payment.--An insured member who
serves in excess of 30 days of covered service shall be paid
the amount to which such member is entitled on a monthly
basis beginning not later than one month after the 30th day
of covered service.
``(b) Method of Payment.--The Secretary shall prescribe in
the regulations the manner in which payments shall be made to
the member or to a person designated in accordance with
subsection (c).
``(c) Designated Recipients.--(1) A member may designate in
writing another person (including a spouse, parent, or other
person with an insurable interest, as determined in
accordance with the regulations prescribed by the Secretary)
to receive payments of insurance benefits under the insurance
program.
``(2) A member may direct that payments of insurance
benefits for a person designated under paragraph (1) be
deposited with a bank or other financial institution to the
credit of the designated person.
``(d) Recipients in Event of Death of Insured Member.--Any
insurance payable under the insurance program on account of a
deceased member's period of covered service shall be paid,
upon the establishment of a valid claim, to the beneficiary
or beneficiaries which the deceased member designated in
writing. If no such designation

[[Page H387]]
has been made, the amount shall be payable in accordance with the laws
of the State of the member's domicile.

``Sec. 12531. Purchase of insurance

``(a) Purchase Authorized.--The Secretary may, instead of
or in addition to underwriting the insurance program through
the Fund, purchase from one or more insurance companies a
policy or policies of group insurance in order to provide the
benefits required under this chapter. The Secretary may waive
any requirement for full and open competition in order to
purchase an insurance policy under this subsection.
``(b) Eligible Insurers.--In order to be eligible to sell
insurance to the Secretary for purposes of subsection (a), an
insurance company shall--
``(1) be licensed to issue insurance in each of the 50
States and in the District of Columbia; and
``(2) as of the most recent December 31 for which
information is available to the Secretary, have in effect at
least one percent of the total amount of insurance that all
such insurance companies have in effect in the United States.
``(c) Administrative Provisions.--(1) An insurance company
that issues a policy for purposes of subsection (a) shall
establish an administrative office at a place and under a
name designated by the Secretary.
``(2) For the purposes of carrying out this chapter, the
Secretary may use the facilities and services of any
insurance company issuing any policy for purposes of
subsection (a), may designate one such company as the
representative of the other companies for such purposes, and
may contract to pay a reasonable fee to the designated
company for its services.
``(d) Reinsurance.--The Secretary shall arrange with each
insurance company issuing any policy for purposes of
subsection (a) to reinsure, under conditions approved by the
Secretary, portions of the total amount of the insurance
under such policy or policies with such other insurance
companies (which meet qualifying criteria prescribed by the
Secretary) as may elect to participate in such reinsurance.
``(e) Termination.--The Secretary may at any time terminate
any policy purchased under this section.

``Sec. 12532. Termination for nonpayment of premiums;
forfeiture

``(a) Termination for Nonpayment.--The coverage of a member
under the insurance program shall terminate without prior
notice upon a failure of the member to make required monthly
payments of premiums for two consecutive months. The
Secretary may provide in the regulations for reinstatement of
insurance coverage terminated under this subsection.
``(b) Forfeiture.--Any person convicted of mutiny, treason,
spying, or desertion, or who refuses to perform service in
the armed forces or refuses to wear the uniform of any of the
armed forces shall forfeit all rights to insurance under this
chapter.''.
(2) The tables of chapters at the beginning of subtitle E,
and at the beginning of part II of subtitle E, of title 10,
United States Code, are amended by inserting after the item
relating to chapter 1213 the following new item:

``1214. Ready Reserve Mobilization Income Insurance........12521''.....

(b) Effective Date.--The insurance program provided for in
chapter 1214 of title 10, United States Code, as added by
subsection (a), and the requirement for deductions and
contributions for that program shall take effect on September
30, 1996, or on any earlier date declared by the Secretary
and published in the Federal Register.

SEC. 513. MILITARY TECHNICIAN FULL-TIME SUPPORT PROGRAM FOR
ARMY AND AIR FORCE RESERVE COMPONENTS.

(a) Requirement of Annual Authorization of End Strength.--
(1) Section 115 of title 10, United States Code, is amended
by adding at the end the following new subsection:
``(g) Congress shall authorize for each fiscal year the end
strength for military technicians for each reserve component
of the Army and Air Force. Funds available to the Department
of Defense for any fiscal year may not be used for the pay of
a military technician during that fiscal year unless the
technician fills a position that is within the number of such
positions authorized by law for that fiscal year for the
reserve component of that technician. This subsection applies
without regard to section 129 of this title.''.
(2) The amendment made by paragraph (1) does not apply with
respect to fiscal year 1995.
(b) Authorization for Fiscal Years 1996 and 1997.--For each
of fiscal years 1996 and 1997, the minimum number of military
technicians, as of the last day of that fiscal year, for the
Army and the Air Force (notwithstanding section 129 of title
10, United States Code) shall be the following:
(1) Army National Guard, 25,500.
(2) Army Reserve, 6,630.
(3) Air National Guard, 22,906.
(4) Air Force Reserve, 9,802.
(c) Administration of Military Technician Program.--(1)
Chapter 1007 of title 10, United States Code, is amended by
adding at the end the following new section:

``Sec. 10216. Military technicians

``(a) Priority for Management of Military Technicians.--(1)
As a basis for making the annual request to Congress pursuant
to section 115 of this title for authorization of end
strengths for military technicians of the Army and Air Force
reserve components, the Secretary of Defense shall give
priority to supporting authorizations for dual status
military technicians in the following high-priority units and
organizations:
``(A) Units of the Selected Reserve that are scheduled to
deploy no later than 90 days after mobilization.
``(B) Units of the Selected Reserve that are or will deploy
to relieve active duty peacetime operations tempo.
``(C) Those organizations with the primary mission of
providing direct support surface and aviation maintenance for
the reserve components of the Army and Air Force, to the
extent that the military technicians in such units would
mobilize and deploy in a skill that is compatible with their
civilian position skill.
``(2) For each fiscal year, the Secretary of Defense shall,
for the high-priority units and organizations referred to in
paragraph (1), seek to achieve a programmed manning level for
military technicians that is not less than 90 percent of the
programmed manpower structure for those units and
organizations for military technicians for that fiscal year.
``(3) Military technician authorizations and personnel in
high-priority units and organizations specified in paragraph
(1) shall be exempt from any requirement (imposed by law or
otherwise) for reductions in Department of Defense civilian
personnel and shall only be reduced as part of military force
structure reductions.
``(b) Dual-Status Requirement.--The Secretary of Defense
shall require the Secretary of the Army and the Secretary of
the Air Force to establish as a condition of employment for
each individual who is hired after the date of the enactment
of this section as a military technician that the individual
maintain membership in the Selected Reserve (so as to be a
so-called `dual-status' technician) and shall require that
the civilian and military position skill requirements of
dual-status military technicians be compatible. No Department
of Defense funds may be spent for compensation for any
military technician hired after the date of the enactment of
this section who is not a member of the Selected Reserve,
except that compensation may be paid for up to six months
following loss of membership in the Selected Reserve if
such loss of membership was not due to the failure to meet
military standards.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``10216. Military technicians.''.

(d) Review of Reserve Component Management Headquarters.--
(1) The Secretary of Defense shall, within six months after
the date of the enactment of this Act, undertake steps to
reduce, consolidate, and streamline management headquarters
operations of the reserve components. As part of those steps,
the Secretary shall identify those military technicians
positions in such headquarters operations that are excess to
the requirements of those headquarters.
(2) Of the military technicians positions that are
identified under paragraph (1), the Secretary shall
reallocate up to 95 percent of the annual funding required to
support those positions for the purpose of creating new
positions or filling existing positions in the high-priority
units and activities specified in section 10216(a) of title
10, United States Code, as added by subsection (c).
(e) Annual Defense Manpower Requirements Report.--Section
115a of title 10, United States Code, is amended by adding at
the end the following new subsection:
``(h) In each such report, the Secretary shall include a
separate report on the Army and Air Force military technician
programs. The report shall include a presentation, shown by
reserve component and shown both as of the end of the
preceding fiscal year and for the next fiscal year, of the
following:
``(1) The number of military technicians required to be
employed (as specified in accordance with Department of
Defense procedures), the number authorized to be employed
under Department of Defense personnel procedures, and the
number actually employed.
``(2) Within each of the numbers under paragraph (1)--
``(A) the number applicable to a reserve component
management headquarter organization; and
``(B) the number applicable to high-priority units and
organizations (as specified in section 10216(a) of this
title).
``(3) Within each of the numbers under paragraph (1), the
numbers of military technicians who are not themselves
members of a reserve component (so-called `single-status'
technicians), with a further display of such numbers as
specified in paragraph (2).''.

SEC. 514. REVISIONS TO ARMY GUARD COMBAT REFORM INITIATIVE TO
INCLUDE ARMY RESERVE UNDER CERTAIN PROVISIONS
AND MAKE CERTAIN REVISIONS.

(a) Prior Active Duty Personnel.--Section 1111 of the Army
National Guard Combat Readiness Reform Act of 1992 (title XI
of Public Law 102-484) is amended--
(1) in the section heading, by striking out the first three
words;
(2) by striking out subsections (a) and (b) and inserting
in lieu thereof the following:
``(a) Additional Prior Active Duty Officers.--The Secretary
of the Army shall increase the number of qualified prior
active-

[[Page H388]]
duty officers in the Army National Guard by providing a program that
permits the separation of officers on active duty with at
least two, but less than three, years of active service upon
condition that the officer is accepted for appointment in the
Army National Guard. The Secretary shall have a goal of
having not fewer than 150 officers become members of the Army
National Guard each year under this section.
``(b) Additional Prior Active Duty Enlisted Members.--The
Secretary of the Army shall increase the number of qualified
prior active-duty enlisted members in the Army National Guard
through the use of enlistments as described in section 8020
of the Department of Defense Appropriations Act, 1994 (Public
Law 103-139). The Secretary shall enlist not fewer than 1,000
new enlisted members each year under enlistments described in
that section.''; and
(3) by striking out subsections (d) and (e).
(b) Service in the Selected Reserve in Lieu of Active Duty
Service for ROTC Graduates.--Section 1112(b) of such Act (106
Stat. 2537) is amended by striking out ``National Guard''
before the period at the end and inserting in lieu thereof
``Selected Reserve''.
(c) Review of Officer Promotions.--Section 1113 of such Act
(106 Stat. 2537) is amended--
(1) in subsection (a), by striking out ``National Guard''
both places it appears and inserting in lieu thereof
``Selected Reserve''; and
(2) by striking out subsection (b) and inserting in lieu
thereof the following:
``(b) Coverage of Selected Reserve Combat and Early
Deploying Units.--(1) Subsection (a) applies to officers in
all units of the Selected Reserve that are designated as
combat units or that are designated for deployment within 75
days of mobilization.
``(2) Subsection (a) shall take effect with respect to
officers of the Army Reserve, and with respect to officers of
the Army National Guard in units not subject to subsection
(a) as of the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1996, at the end of the 90-
day period beginning on such date of enactment.''.
(d) Initial Entry Training and Nondeployable Personnel.--
Section 1115 of such Act (106 Stat. 2538) is amended--
(1) in subsections (a) and (b), by striking out ``National
Guard'' each place it appears and inserting in lieu thereof
``Selected Reserve''; and
(2) in subsection (c)--
(A) by striking out ``a member of the Army National Guard
enters the National Guard'' and inserting in lieu thereof ``a
member of the Army Selected Reserve enters the Army
Selected Reserve''; and
(B) by striking out ``from the Army National Guard''.
(e) Accounting of Members Who Fail Physical Deployability
Standards.--Section 1116 of such Act (106 Stat. 2539) is
amended by striking out ``National Guard'' each place it
appears and inserting in lieu thereof ``Selected Reserve''.
(f) Use of Combat Simulators.--Section 1120 of such Act
(106 Stat. 2539) is amended by inserting ``and the Army
Reserve'' before the period at the end.

SEC. 515. ACTIVE DUTY ASSOCIATE UNIT RESPONSIBILITY.

(a) Associate Units.--Subsection (a) of section 1131 of the
National Defense Authorization Act for Fiscal Year 1993
(Public Law 102-484; 106 Stat. 2540) is amended to read as
follows:
``(a) Associate Units.--The Secretary of the Army shall
require--
``(1) that each ground combat maneuver brigade of the Army
National Guard that (as determined by the Secretary) is
essential for the execution of the National Military Strategy
be associated with an active-duty combat unit; and
``(2) that combat support and combat service support units
of the Army Selected Reserve that (as determined by the
Secretary) are essential for the execution of the National
Military Strategy be associated with active-duty units.''.
(b) Responsibilities.--Subsection (b) of such section
is amended--
(1) by striking out ``National Guard combat unit'' in the
matter preceding paragraph (1) and inserting in lieu thereof
``National Guard unit or Army Selected Reserve unit that (as
determined by the Secretary under subsection (a)) is
essential for the execution of the National Military
Strategy''; and
(2) by striking out ``of the National Guard unit'' in
paragraphs (1), (2), (3), and (4) and inserting in lieu
thereof ``of that unit''.

SEC. 516. LEAVE FOR MEMBERS OF RESERVE COMPONENTS PERFORMING
PUBLIC SAFETY DUTY.

(a) Election of Leave To Be Charged.--Subsection (b) of
section 6323 of title 5, United States Code, is amended by
adding at the end the following: ``Upon the request of an
employee, the period for which an employee is absent to
perform service described in paragraph (2) may be charged to
the employee's accrued annual leave or to compensatory time
available to the employee instead of being charged as leave
to which the employee is entitled under this subsection. The
period of absence may not be charged to sick leave.''.
(b) Pay for Period of Absence.--Section 5519 of such title
is amended by striking out ``entitled to leave'' and
inserting in lieu thereof ``granted military leave''.

SEC. 517. DEPARTMENT OF DEFENSE FUNDING FOR NATIONAL GUARD
PARTICIPATION IN JOINT DISASTER AND EMERGENCY
ASSISTANCE EXERCISES.

Section 503(a) of title 32, United States Code, is
amended--
(1) by inserting ``(1)'' after ``(a)''; and
(2) by adding at the end the following:
``(2) Paragraph (1) includes authority to provide for
participation of the National Guard in conjunction with the
Army or the Air Force, or both, in joint exercises for
instruction to prepare the National Guard for response to
civil emergencies and disasters.''.
Subtitle C--Decorations and Awards

SEC. 521. AWARD OF PURPLE HEART TO PERSONS WOUNDED WHILE HELD
AS PRISONERS OF WAR BEFORE APRIL 25, 1962.

(a) Award of Purple Heart.--For purposes of the award of
the Purple Heart, the Secretary concerned (as defined in
section 101 of title 10, United States Code) shall treat a
former prisoner of war who was wounded before April 25, 1962,
while held as a prisoner of war (or while being taken
captive) in the same manner as a former prisoner of war who
is wounded on or after that date while held as a prisoner of
war (or while being taken captive).
(b) Standards for Award.--An award of the Purple Heart
under subsection (a) shall be made in accordance with the
standards in effect on the date of the enactment of this Act
for the award of the Purple Heart to persons wounded on or
after April 25, 1962.
(c) Eligible Former Prisoners of War.--A person shall be
considered to be a former prisoner of war for purposes of
this section if the person is eligible for the prisoner-of-
war medal under section 1128 of title 10, United States Code.

SEC. 522. AUTHORITY TO AWARD DECORATIONS RECOGNIZING ACTS OF
VALOR PERFORMED IN COMBAT DURING THE VIETNAM
CONFLICT.

(a) Findings.--Congress makes the following findings:
(1) The Ia Drang Valley (Pleiku) campaign, carried out by
the Armed Forces in the Ia Drang Valley of Vietnam from
October 23, 1965, to November 26, 1965, is illustrative of
the many battles during the Vietnam conflict which pitted
forces of the United States against North Vietnamese Army
regulars and Viet Cong in vicious fighting.
(2) Accounts of those battles that have been published
since the end of that conflict authoritatively document
numerous and repeated acts of extraordinary heroism,
sacrifice, and bravery on the part of members of the Armed
Forces, many of which have never been officially recognized.
(3) In some of those battles, United States military units
suffered substantial losses, with some units sustaining
casualties in excess of 50 percent.
(4) The incidence of heavy casualties throughout the
Vietnam conflict inhibited the timely collection of
comprehensive and detailed information to support
recommendations for awards recognizing acts of heroism,
sacrifice, and bravery.
(5) Subsequent requests to the Secretaries of the military
departments for review of award recommendations for such acts
have been denied because of restrictions in law and
regulations that require timely filing of such
recommendations and documented justification.
(6) Acts of heroism, sacrifice, and bravery performed in
combat by members of the Armed Forces deserve appropriate and
timely recognition by the people of the United States.
(7) It is appropriate to recognize acts of heroism,
sacrifice, or bravery that are belatedly, but properly,
documented by persons who witnessed those acts.
(b) Waiver of Time Limitations for Recommendations for
Awards.--(1) Any decoration covered by paragraph (2) may be
awarded, without regard to any time limit imposed by law or
regulation for a recommendation for such award to any person
for actions by that person in the Southeast Asia theater of
operations while serving on active duty during the Vietnam
era. The waiver of time limitations under this paragraph
applies only in the case of awards for acts of valor for
which a request for consideration is submitted under
subsection (c).
(2) Paragraph (1) applies to any decoration (including any
device in lieu of a decoration) that, during or after the
Vietnam era and before the date of the enactment of this Act,
was authorized by law or under regulations of the Department
of Defense or the military department concerned to be awarded
to members of the Armed Forces for acts of valor.
(c) Review of Requests for Consideration of Awards.--(1)
The Secretary of each military department shall review each
request for consideration of award of a decoration described
in subsection (b) that are received by the Secretary during
the one-year period beginning on the date of enactment of
this Act.
(2) The Secretaries shall begin the review within 30 days
after the date of the enactment of this Act and shall
complete the review of each request for consideration not
later than one year after the date on which the request is
received.
(3) The Secretary may use the same process for carrying out
the review as the Secretary uses for reviewing other
recommendations for award of decorations to members of the
Armed Forces under the Secretary's jurisdiction for valorous
acts.

[[Page H389]]

(d) Report.--(1) Upon completing the review of each such
request under subsection (c), the Secretary shall submit a
report on the review to the Committee on Armed Services of
the Senate and the Committee on National Security of the
House of Representatives.
(2) The report shall include, with respect to each request
for consideration received, the following information:
(A) A summary of the request for consideration.
(B) The findings resulting from the review.
(C) The final action taken on the request for
consideration.
(e) Definition.--For purposes of this section:
(1) The term ``Vietnam era'' has the meaning given that
term in section 101 of title 38, United States Code.
(2) The term ``active duty'' has the meaning given that
term in section 101 of title 10, United States Code.

SEC. 523. MILITARY INTELLIGENCE PERSONNEL PREVENTED BY
SECRECY FROM BEING CONSIDERED FOR DECORATIONS
AND AWARDS.

(a) Waiver on Restrictions of Awards.--(1) Any decoration
covered by paragraph (2) may be awarded, without regard to
any time limit imposed by law or regulation for a
recommendation for such award, to any person for an act,
achievement, or service that the person performed in carrying
out military intelligence duties during the period beginning
on January 1, 1940, and ending on December 31, 1990.
(2) Paragraph (1) applies to any decoration (including any
device in lieu of a decoration) that, during or after the
period described in paragraph (1) and before the date of the
enactment of this Act, was authorized by law or under the
regulations of the Department of Defense or the military
department concerned to be awarded to a person for an act,
achievement, or service performed by that person while
serving on active duty.
(b) Review of Requests for Consideration of Awards.--(1)
The Secretary of each military department shall review each
request for consideration of award of a decoration described
in subsection (a) that is received by the Secretary during
the one-year period beginning on the date of the enactment of
this Act.
(2) The Secretaries shall begin the review within 30 days
after the date of the enactment of this Act and shall
complete the review of each request for consideration not
later than one year after the date on which the request is
received.
(3) The Secretary may use the same process for carrying out
the review as the Secretary uses for reviewing other
recommendations for awarding decorations to members of the
Armed Forces under the Secretary's jurisdiction for acts,
achievements, or service.
(c) Report.--(1) Upon completing the review of each such
request under subsection (b), the Secretary shall submit a
report on the review to the Committee on Armed Services of
the Senate and the Committee on National Security of the
House of Representatives.
(2) The report shall include, with respect to each request
for consideration reviewed, the following information:
(A) A summary of the request for consideration.
(B) The findings resulting from the review.
(C) The final action taken on the request for
consideration.
(D) Administrative or legislative recommendations to
improve award procedures with respect to military
intelligence personnel.
(d) Definition.--For purposes of this section, the term
``active duty'' has the meaning given such term in section
101 of title 10, United States Code.

SEC. 524. REVIEW REGARDING UPGRADING OF DISTINGUISHED-SERVICE
CROSSES AND NAVY CROSSES AWARDED TO ASIAN-
AMERICANS AND NATIVE AMERICAN PACIFIC ISLANDERS
FOR WORLD WAR II SERVICE.

(a) Review Required.--(1) The Secretary of the Army shall
review the records relating to each award of the
Distinguished-Service Cross, and the Secretary of the Navy
shall review the records relating to each award of the Navy
Cross, that was awarded to an Asian-American or a Native
American Pacific Islander with respect to service as a member
of the Armed Forces during World War II. The purpose of the
review shall be to determine whether any such award should be
upgraded to the Medal of Honor.
(2) If the Secretary concerned determines, based upon the
review under paragraph (1), that such an upgrade is
appropriate in the case of any person, the Secretary shall
submit to the President a recommendation that the President
award the Medal of Honor to that person.
(b) Waiver of Time Limitations.--A Medal of Honor may be
awarded to a person referred to in subsection (a) in
accordance with a recommendation of the Secretary concerned
under that subsection without regard to--
(1) section 3744, 6248, or 8744 of title 10, United States
Code, as applicable; and
(2) any regulation or other administrative restriction on--
(A) the time for awarding the Medal of Honor; or
(B) the awarding of the Medal of Honor for service for
which a Distinguished-Service Cross or Navy Cross has been
awarded.
(c) Definition.--For purposes of this section, the term
``Native American Pacific Islander'' means a Native Hawaiian
and any other Native American Pacific Islander within
the meaning of the Native American Programs Act of 1974
(42 U.S.C. 2991 et seq.).

SEC. 525. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL
BASED UPON SERVICE IN EL SALVADOR.

(a) In General.--For the purpose of determining eligibility
of members and former members of the Armed Forces for the
Armed Forces Expeditionary Medal, the country of El Salvador
during the period beginning on January 1, 1981 and ending on
February 1, 1992, shall be treated as having been designated
as an area and a period of time in which members of the Armed
Forces participated in operations in significant numbers and
otherwise met the general requirements for the award of that
medal.
(b) Individual Determination.--The Secretary of the
military department concerned shall determine whether
individual members or former members of the Armed Forces who
served in El Salvador during the period beginning on January
1, 1981 and ending on February 1, 1992 meet the individual
service requirements for award of the Armed Forces
Expeditionary Medal as established in applicable regulations.
Such determinations shall be made as expeditiously as
possible after the date of the enactment of this Act.

SEC. 526. PROCEDURE FOR CONSIDERATION OF MILITARY DECORATIONS
NOT PREVIOUSLY SUBMITTED IN TIMELY FASHION.

(a) In General.--Chapter 57 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 1130. Consideration of proposals for decorations not
previously submitted in timely fashion: procedures for
review and recommendation

``(a) Upon request of a Member of Congress, the Secretary
concerned shall review a proposal for the award or
presentation of a decoration (or the upgrading of a
decoration), either for an individual or a unit, that is not
otherwise authorized to be presented or awarded due to
limitations established by law or policy for timely
submission of a recommendation for such award or
presentation. Based upon such review, the Secretary shall
make a determination as to the merits of approving the award
or presentation of the decoration and the other
determinations necessary to comply with subsection (b).
``(b) Upon making a determination under subsection (a) as
to the merits of approving the award or presentation of the
decoration, the Secretary concerned shall submit to the
Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives and to
the requesting member of Congress notice in writing of one of
the following:
``(1) The award or presentation of the decoration does not
warrant approval on the merits.
``(2) The award or presentation of the decoration warrants
approval and a waiver by law of time restrictions prescribed
by law is recommended.
``(3) The award or presentation of the decoration warrants
approval on the merits and has been approved as an exception
to policy.
``(4) The award or presentation of the decoration warrants
approval on the merits, but a waiver of the time restrictions
prescribed by law or policy is not recommended.
A notice under paragraph (1) or (4) shall be accompanied by a
statement of the reasons for the decision of the Secretary.
``(c) Determinations under this section regarding the award
or presentation of a decoration shall be made in accordance
with the same procedures that apply to the approval or
disapproval of the award or presentation of a decoration when
a recommendation for such award or presentation is submitted
in a timely manner as prescribed by law or regulation.
``(d) In this section:
``(1) The term `Member of Congress' means--
``(A) a Senator; or
``(B) a Representative in, or a Delegate or Resident
Commissioner to, Congress.
``(2) The term `decoration' means any decoration or award
that may be presented or awarded to a member or unit of the
armed forces.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``1130. Consideration of proposals for decorations not previously
submitted in timely fashion: procedures for review and
recommendation.''.
Subtitle D--Officer Education Programs

PART I--SERVICE ACADEMIES

SEC. 531. REVISION OF SERVICE OBLIGATION FOR GRADUATES OF THE
SERVICE ACADEMIES.

(a) Military Academy.--Section 4348(a)(2)(B) of title 10,
United States Code, is amended by striking out ``six years''
and inserting in lieu thereof ``five years''.
(b) Naval Academy.--Section 6959(a)(2)(B) of such title is
amended by striking out ``six years'' and inserting in lieu
thereof ``five years''.
(c) Air Force Academy.--Section 9348(a)(2)(B) of such title
is amended by striking out ``six years'' and inserting in
lieu thereof ``five years''.
(d) Requirement for Review and Report.--(1) The Secretary
of Defense shall review the effects that each of various
periods

[[Page H390]]
of obligated active duty service for graduates of the United States
Military Academy, the United States Naval Academy, and the
United States Air Force Academy would have on the number and
quality of the eligible and qualified applicants seeking
appointment to such academies.
(2) Not later than April 1, 1996, the Secretary shall
submit to the Committee on Armed Services of the Senate and
the Committee on National Security of the House of
Representatives a report on the Secretary's findings under
the review, together with any recommended legislation
regarding the minimum periods of obligated active duty
service for graduates of the United States Military Academy,
the United States Naval Academy, and the United States Air
Force Academy.
(e) Applicability.--The amendments made by this section
apply to persons first admitted to the United States Military
Academy, United States Naval Academy, and United States Air
Force Academy after December 31, 1991.

SEC. 532. NOMINATIONS TO SERVICE ACADEMIES FROM COMMONWEALTH
OF THE NORTHERN MARIANAS ISLANDS.

(a) Military Academy.--Section 4342(a) of title 10, United
States Code, is amended by inserting after paragraph (9) the
following new paragraph:
``(10) One cadet from the Commonwealth of the Northern
Marianas Islands, nominated by the resident representative
from the commonwealth.''.
(b) Naval Academy.--Section 6954(a) of title 10, United
States Code, is amended by inserting after paragraph (9) the
following new paragraph:
``(10) One from the Commonwealth of the Northern Marianas
Islands, nominated by the resident representative from the
commonwealth.''.
(c) Air Force Academy.--Section 9342(a) of title 10, United
States Code, is amended by inserting after paragraph (9) the
following new paragraph:
``(10) One cadet from the Commonwealth of the Northern
Marianas Islands, nominated by the resident representative
from the commonwealth.''.

SEC. 533. REPEAL OF REQUIREMENT FOR ATHLETIC DIRECTOR AND
NONAPPROPRIATED FUND ACCOUNT FOR THE ATHLETICS
PROGRAMS AT THE SERVICE ACADEMIES.

(a) United States Military Academy.--(1) Section 4357 of
title 10, United States Code, is repealed.
(2) The table of sections at the beginning of chapter 403
of such title is amended by striking out the item relating to
section 4357.
(b) United States Naval Academy.--Section 556 of the
National Defense Authorization Act for Fiscal Year 1995
(Public Law 103-337; 108 Stat. 2774) is amended by striking
out subsections (b) and (e).
(c) United States Air Force Academy.--(1) Section 9356 of
title 10, United States Code, is repealed.
(2) The table of sections at the beginning of chapter 903
of such title is amended by striking out the item relating to
section 9356.

SEC. 534. REPEAL OF REQUIREMENT FOR PROGRAM TO TEST
PRIVATIZATION OF SERVICE ACADEMY PREPARATORY
SCHOOLS.

Section 536 of the National Defense Authorization Act for
Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 4331 note) is
repealed.

PART II--RESERVE OFFICER TRAINING CORPS

SEC. 541. ROTC ACCESS TO CAMPUSES.

(a) In General.--Chapter 49 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 983. Institutions of higher education that prohibit
Senior ROTC units: denial of Department of Defense grants
and contracts

``(a) Denial of Department of Defense Grants and
Contracts.--(1) No funds appropriated or otherwise available
to the Department of Defense may be made obligated by
contract or by grant (including a grant of funds to be
available for student aid) to any institution of higher
education that, as determined by the Secretary of Defense,
has an anti-ROTC policy and at which, as determined by the
Secretary, the Secretary would otherwise maintain or seek to
establish a unit of the Senior Reserve Officer Training Corps
or at which the Secretary would otherwise enroll or seek to
enroll students for participation in a unit of the Senior
Reserve Officer Training Corps at another nearby institution
of higher education.
``(2) In the case of an institution of higher education
that is ineligible for Department of Defense grants and
contracts by reason of paragraph (1), the prohibition under
that paragraph shall cease to apply to that institution upon
a determination by the Secretary that the institution no
longer has an anti-ROTC policy.
``(b) Notice of Determination.--Whenever the Secretary
makes a determination under subsection (a) that an
institution has an anti-ROTC policy, or that an institution
previously determined to have an anti-ROTC policy no longer
has such a policy, the Secretary--
``(1) shall transmit notice of that determination to the
Secretary of Education and to the Committee on Armed Services
of the Senate and the Committee on National Security of the
House of Representatives; and
``(2) shall publish in the Federal Register notice of that
determination and of the effect of that determination under
subsection (a)(1) on the eligibility of that institution for
Department of Defense grants and contracts.
``(c) Semiannual Notice in Federal Register.--The Secretary
shall publish in the Federal Register once every six months a
list of each institution of higher education that is
currently ineligible for Department of Defense grants and
contracts by reason of a determination of the Secretary under
subsection (a).
``(d) Anti-ROTC Policy.--In this section, the term `anti-
ROTC policy' means a policy or practice of an institution of
higher education that--
``(1) prohibits, or in effect prevents, the Secretary of
Defense from maintaining or establishing a unit of the Senior
Reserve Officer Training Corps at that institution, or
``(2) prohibits, or in effect prevents, a student at that
institution from enrolling in a unit of the Senior Reserve
Officer Training Corps at another institution of higher
education.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``983. Institutions of higher education that prohibit Senior ROTC
units: denial of Department of Defense grants and
contracts.''.

SEC. 542. ROTC SCHOLARSHIPS FOR THE NATIONAL GUARD.

(a) Clarification of Restriction on Active Duty.--Paragraph
(2) of section 2107(h) of title 10, United States Code, is
amended by inserting ``full-time'' before ``active duty'' in
the second sentence.
(b) Redesignation of ROTC Scholarships.--Such paragraph is
further amended by inserting after the first sentence the
following new sentence: ``A cadet designated under this
paragraph who, having initially contracted for service as
provided in subsection (b)(5)(A) and having received
financial assistance for two years under an award providing
for four years of financial assistance under this section,
modifies such contract with the consent of the Secretary of
the Army to provide for service as described in subsection
(b)(5)(B), may be counted, for the year in which the contract
is modified, toward the number of appointments required under
the preceding sentence for financial assistance awarded for a
period of four years.''.

SEC. 543. DELAY IN REORGANIZATION OF ARMY ROTC REGIONAL
HEADQUARTERS STRUCTURE.

(a) Delay.--The Secretary of the Army may not take any
action to reorganize the regional headquarters and basic camp
structure of the Reserve Officers Training Corps program of
the Army until six months after the date on which the report
required by subsection (d) is submitted.
(b) Cost-Benefit Analysis.--The Secretary of the Army shall
conduct a comparative cost-benefit analysis of various
options for the reorganization of the regional headquarters
and basic camp structure of the Army ROTC program. As part of
such analysis, the Secretary shall measure each
reorganization option considered against a common set of
criteria.
(c) Selection of Reorganization Option for
Implementation.--Based on the findings resulting from the
cost-benefit analysis under subsection (b) and such other
factors as the Secretary considers appropriate, the Secretary
shall select one reorganization option for implementation.
The Secretary may select an option for implementation only if
the Secretary finds that the cost-benefit analysis and other
factors considered clearly demonstrate that such option,
better than any other option considered--
(1) provides the structure to meet projected mission
requirements;
(2) achieves the most significant personnel and cost
savings;
(3) uses existing basic and advanced camp facilities to the
maximum extent possible;
(4) minimizes additional military construction costs; and
(5) makes maximum use of the reserve components to support
basic and advanced camp operations, thereby minimizing the
effect of those operations on active duty units.
(d) Report.--Not later than 60 days after the date of the
enactment of this Act, the Secretary of the Army shall submit
to the Committee on Armed Services of the Senate and the
Committee on National Security of the House of
Representatives a report describing the reorganization option
selected under subsection (c). The report shall include the
results of the cost-benefit analysis under subsection (b) and
a detailed rationale for the reorganization option selected.

SEC. 544. DURATION OF FIELD TRAINING OR PRACTICE CRUISE
REQUIRED UNDER THE SENIOR RESERVE OFFICERS'
TRAINING CORPS PROGRAM.

Section 2104(b)(6)(A)(ii) of title 10, United States Code,
is amended by striking out ``not less than six weeks'
duration'' and inserting in lieu thereof ``a duration''.

SEC. 545. ACTIVE DUTY OFFICERS DETAILED TO ROTC DUTY AT
SENIOR MILITARY COLLEGES TO SERVE AS COMMANDANT
AND ASSISTANT COMMANDANT OF CADETS AND AS
TACTICAL OFFICERS.

(a) In General.--Chapter 103 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 2111a. Detail of officers to senior military colleges

``(a) Detail of Officers To Serve as Commandant or
Assistant Commandant of Cadets.--(1) Upon the request of a
senior military college, the Secretary of Defense may

[[Page H391]]
detail an officer on the active-duty list to serve as Commandant of
Cadets at that college or (in the case of a college with an
Assistant Commandant of Cadets) detail an officer on the
active-duty list to serve as Assistant Commandant of Cadets
at that college (but not both).
``(2) In the case of an officer detailed as Commandant of
Cadets, the officer may, upon the request of the college, be
assigned from among the Professor of Military Science, the
Professor of Naval Science (if any), and the Professor of
Aerospace Science (if any) at that college or may be in
addition to any other officer detailed to that college in
support of the program.
``(3) In the case of an officer detailed as Assistant
Commandant of Cadets, the officer may, upon the request of
the college, be assigned from among officers otherwise
detailed to duty at that college in support of the program or
may be in addition to any other officer detailed to that
college in support of the program.
``(b) Designation of Officers as Tactical Officers.--Upon
the request of a senior military college, the Secretary of
Defense may authorize officers (other than officers covered
by subsection (a)) who are detailed to duty as instructors at
that college to act simultaneously as tactical officers (with
or without compensation) for the Corps of Cadets at that
college.
``(c) Detail of Officers.--The Secretary of a military
department shall designate officers for detail to the program
at a senior military college in accordance with criteria
provided by the college. An officer may not be detailed to a
senior military college without the approval of that college.
``(d) Senior Military Colleges.--The senior military
colleges are the following:
``(1) Texas A&M University.
``(2) Norwich College.
``(3) The Virginia Military Institute.
``(4) The Citadel.
``(5) Virginia Polytechnic Institute and State University.
``(6) North Georgia College.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2111a. Detail of officers to senior military colleges.''.
Subtitle E--Miscellaneous Reviews, Studies, and Reports

SEC. 551. REPORT CONCERNING APPROPRIATE FORUM FOR JUDICIAL
REVIEW OF DEPARTMENT OF DEFENSE PERSONNEL
ACTIONS.

(a) Establishment.--The Secretary of Defense shall
establish an advisory committee to consider issues relating
to the appropriate forum for judicial review of Department of
Defense administrative personnel actions.
(b) Membership.--(1) The committee shall be composed of
five members, who shall be appointed by the Secretary of
Defense after consultation with the Attorney General and the
Chief Justice of the United States.
(2) All members of the committee shall be appointed not
later than 30 days after the date of the enactment of this
Act.
(c) Duties.--The committee shall review, and provide
findings and recommendations regarding, the following matters
with respect to judicial review of administrative personnel
actions of the Department of Defense:
(1) Whether the existing forum for such review through the
United States district courts provides appropriate and
adequate review of such actions.
(2) Whether jurisdiction to conduct judicial review of such
actions should be established in a single court in order to
provide a centralized review of such actions and, if so, in
which court that jurisdiction should be vested.
(d) Report.--(1) Not later than December 15, 1996, the
committee shall submit to the Secretary of Defense a report
setting forth its findings and recommendations, including its
recommendations pursuant to subsection (c).
(2) Not later than January 1, 1997, the Secretary of
Defense, after consultation with the Attorney General, shall
transmit the committee's report to Congress. The Secretary
may include in the transmittal any comments on the report
that the Secretary or the Attorney General consider
appropriate.
(e) Termination of Committee.--The committee shall
terminate 30 days after the date of the submission of its
report to Congress under subsection (d)(2).

SEC. 552. COMPTROLLER GENERAL REVIEW OF PROPOSED ARMY END
STRENGTH ALLOCATIONS.

(a) In General.--During fiscal years 1996 through 2001, the
Comptroller General of the United States shall analyze the
plans of the Secretary of the Army for the allocation of
assigned active component end strengths for the Army through
the requirements process known as Total Army Analysis 2003
and through any subsequent similar requirements process of
the Army that is conducted before 2002. The Comptroller
General's analysis shall consider whether the proposed active
component end strengths and planned allocation of forces for
that period will be sufficient to implement the national
military strategy. In monitoring those plans, the Comptroller
General shall determine the extent to which the Army will be
able during that period--
(1) to man fully the combat force based on the projected
active component Army end strength for each of fiscal years
1996 through 2001;
(2) to meet the support requirements for the force and
strategy specified in the report of the Bottom-Up Review,
including requirements for operations other than war; and
(3) to streamline further Army infrastructure in order to
eliminate duplication and inefficiencies and replace active
duty personnel in overhead positions, whenever practicable,
with civilian or reserve personnel.
(b) Access to Documents, Etc.--The Secretary of the Army
shall ensure that the Comptroller General is provided access,
on a timely basis and in accordance with the needs of the
Comptroller General, to all analyses, models, memoranda,
reports, and other documents prepared or used in connection
with the requirements process of the Army known as Total Army
Analysis 2003 and any subsequent similar requirements process
of the Army that is conducted before 2002.
(c) Annual Report.--Not later than March 1 of each year
through 2002, the Comptroller General shall submit to
Congress a report on the findings and conclusions of the
Comptroller General under this section.

SEC. 553. REPORT ON MANNING STATUS OF HIGHLY DEPLOYABLE
SUPPORT UNITS.

(a) Report.--Not later than September 30, 1996, the
Secretary of Defense shall submit to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives a report on the units of the
Armed Forces under the Secretary's jurisdiction--
(1) that (as determined by the Secretary of the military
department concerned) are high-priority support units that
would deploy early in a contingency operation or other
crisis; and
(2) that are, as a matter of policy, managed at less than
100 percent of their authorized strengths.
(b) Matters To Be Included.--The Secretary shall include in
the report--
(1) the number of such high-priority support units (shown
by type of unit) that are so managed;
(2) the level of manning within such high-priority support
units; and
(3) with respect to each such unit, either the
justification for manning of less than 100 percent or the
status of corrective action.

SEC. 554. REVIEW OF SYSTEM FOR CORRECTION OF MILITARY
RECORDS.

(a) Review of Procedures.--The Secretary of Defense shall
review the system and procedures for the correction of
military records used by the Secretaries of the military
departments in the exercise of authority under section 1552
of title 10, United States Code, in order to identify
potential improvements that could be made in the process for
correcting military records to ensure fairness, equity, and
(consistent with appropriate service to applicants) maximum
efficiency. The Secretary may not delegate responsibility for
the review to an officer or official of a military
department.
(b) Issues Reviewed.--In conducting the review, the
Secretary shall consider (with respect to each Board for the
Correction of Military Records) the following:
(1) The composition of the board and of the support staff
for the board.
(2) Timeliness of final action.
(3) Independence of deliberations by the civilian board.
(4) The authority of the Secretary of the military
department concerned to modify the recommendations of the
board.
(5) Burden of proof and other evidentiary standards.
(6) Alternative methods for correcting military records.
(7) Whether the board should be consolidated with the
Discharge Review Board of the military department.
(c) Report.--Not later than April 1, 1996, the Secretary of
Defense shall submit a report on the results of the
Secretary's review under this section to the Committee on
Armed Services of the Senate and the Committee on National
Security of the House of Representatives. The report shall
contain the recommendations of the Secretary for improving
the process for correcting military records in order to
achieve the objectives referred to in subsection (a).

SEC. 555. REPORT ON THE CONSISTENCY OF REPORTING OF
FINGERPRINT CARDS AND FINAL DISPOSITION FORMS
TO THE FEDERAL BUREAU OF INVESTIGATION.

(a) Report.--The Secretary of Defense shall submit to
Congress a report on the consistency with which fingerprint
cards and final disposition forms, as described in Criminal
Investigations Policy Memorandum 10 issued by the Defense
Inspector General on March 25, 1987, are reported by the
Defense Criminal Investigative Organizations to the Federal
Bureau of Investigation for inclusion in the Bureau's
criminal history identification files. The report shall be
prepared in consultation with the Director of the Federal
Bureau of Investigation.
(b) Matters To Be Included.--In the report, the Secretary
shall--
(1) survey fingerprint cards and final disposition forms
filled out in the past 24 months by each investigative
organization;
(2) compare the fingerprint cards and final disposition
forms filled out to all judicial and nonjudicial procedures
initiated as a result of actions taken by each investigative
service in the past 24 months;

[[Page H392]]

(3) account for any discrepancies between the forms filled
out and the judicial and nonjudicial procedures initiated;
(4) compare the fingerprint cards and final disposition
forms filled out with the information held by the Federal
Bureau of Investigation criminal history identification
files;
(5) identify any weaknesses in the collection of
fingerprint cards and final disposition forms and in the
reporting of that information to the Federal Bureau of
Investigation; and
(6) determine whether or not other law enforcement
activities of the military services collect and report such
information or, if not, should collect and report such
information.
(c) Submission of Report.--The report shall be submitted
not later than one year after the date of the enactment of
this Act.
(d) Definition.--For the purposes of this section, the term
``criminal history identification files'', with respect to
the Federal Bureau of Investigation, means the criminal
history record system maintained by the Federal Bureau of
Investigation based on fingerprint identification and any
other method of positive identification.
Subtitle F--Other Matters

SEC. 561. EQUALIZATION OF ACCRUAL OF SERVICE CREDIT FOR
OFFICERS AND ENLISTED MEMBERS.

(a) Enlisted Service Credit.--Section 972 of title 10,
United States Code, is amended--
(1) by inserting ``(a) Enlisted Members Required To Make Up
Time Lost.--'' before ``An enlisted member'';
(2) by striking out paragraphs (3) and (4) and inserting in
lieu thereof the following:
``(3) is confined by military or civilian authorities for
more than one day in connection with a trial, whether before,
during, or after the trial; or''; and
(3) by redesignating paragraph (5) as paragraph (4).
(b) Officer Service Credit.--Such section is further
amended by adding at the end the following:
``(b) Officers Not Allowed Service Credit for Time Lost.--
In the case of an officer of an armed force who after the
date of the enactment of the National Defense Authorization
Act for Fiscal Year 1996--
``(1) deserts;
``(2) is absent from his organization, station, or duty for
more than one day without proper authority, as determined by
competent authority;
``(3) is confined by military or civilian authorities for
more than one day in connection with a trial, whether before,
during, or after the trial; or
``(4) is unable for more than one day, as determined by
competent authority, to perform his duties because of
intemperate use of drugs or alcoholic liquor, or because of
disease or injury resulting from his misconduct;
the period of such desertion, absence, confinement, or
inability to perform duties may not be counted in computing,
for any purpose other than basic pay under section 205 of
title 37, the officer's length of service.''.
(c) Clerical Amendments.--(1) The heading of such section
is amended to read as follows:

``Sec. 972. Members: effect of time lost

(2) The item relating to section 972 in the table of
sections at the beginning of chapter 49 of such title is
amended to read as follows:

``972. Members: effect of time lost.''.

(d) Conforming Amendments.--(1) Section 1405(c) is
amended--
(A) by striking out ``Made Up.--Time'' and inserting in
lieu thereof ``Made Up or Excluded.--(1) Time'';
(B) by striking out ``section 972'' and inserting in lieu
thereof ``section 972(a)'';
(C) by inserting after ``of this title'' the following: ``,
or required to be made up by an enlisted member of the Navy,
Marine Corps, or Coast Guard under that section with respect
to a period of time after the date of the enactment of the
National Defense Authorization Act for Fiscal Year 1995,'';
and
(D) by adding at the end the following:
``(2) Section 972(b) of this title excludes from
computation of an officer's years of service for purposes of
this section any time identified with respect to that officer
under that section.''.
(2) Chapter 367 of such title is amended--
(A) in section 3925(b), by striking out ``section 972'' and
inserting in lieu thereof ``section 972(a)''; and
(B) by adding at the end of section 3926 the following new
subsection:
``(e) Section 972(b) of this title excludes from
computation of an officer's years of service for purposes of
this section any time identified with respect to that officer
under that section.''.
(3)(A) Chapter 571 of such title is amended by inserting
after section 6327 the following new section:

``Sec. 6328. Computation of years of service: voluntary
retirement

``(a) Enlisted Members.--Time required to be made up under
section 972(a) of this title after the date of the enactment
of this section may not be counted in computing years of
service under this chapter.
``(b) Officers.--Section 972(b) of this title excludes from
computation of an officer's years of service for purposes of
this chapter any time identified with respect to that officer
under that section.''.
(B) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
6327 the following new item:

``6328. Computation of years of service: voluntary retirement.''.

(4) Chapter 867 of such title is amended--
(A) in section 8925(b), by striking out ``section 972'' and
inserting in lieu thereof ``section 972(a)''; and
(B) by adding at the end of section 8926 the following new
subsection:
``(d) Section 972(b) of this title excludes from
computation of an officer's years of service for purposes of
this section any time identified with respect to that officer
under that section.''.
(e) Effective Date and Applicability.--The amendments made
by this section shall take effect on the date of the
enactment of this Act and shall apply to any period of time
covered by section 972 of title 10, United States Code, that
occurs after that date.

SEC. 562. ARMY RANGER TRAINING.

(a) In General.--(1) Chapter 401 of title 10, United States
Code, is amended by inserting after section 4302 the
following new section:

``Sec. 4303. Army Ranger training: instructor staffing;
safety

``(a) Levels of Personnel Assigned.--(1) The Secretary of
the Army shall ensure that at all times the number of
officers, and the number of enlisted members, permanently
assigned to the Ranger Training Brigade (or other
organizational element of the Army primarily responsible for
ranger student training) are not less than 90 percent of the
required manning spaces for officers, and for enlisted
members, respectively, for that brigade.
``(2) In this subsection, the term `required manning
spaces' means the number of personnel spaces for officers,
and the number of personnel spaces for enlisted members, that
are designated in Army authorization documents as the number
required to accomplish the missions of a particular unit or
organization.
``(b) Training Safety Cells.--(1) The Secretary of the Army
shall establish and maintain an organizational entity known
as a `safety cell' as part of the organizational elements of
the Army responsible for conducting each of the three major
phases of the Ranger Course. The safety cell in each
different geographic area of Ranger Course training shall be
comprised of personnel who have sufficient continuity and
experience in that geographic area of such training to be
knowledgeable of the local conditions year-round, including
conditions of terrain, weather, water, and climate and other
conditions and the potential effect on those conditions on
Ranger student training and safety.
``(2) Members of each safety cell shall be assigned in
sufficient numbers to serve as advisers to the officers in
charge of the major phase of Ranger training and shall assist
those officers in making informed daily `go' and `no-go'
decisions regarding training in light of all relevant
conditions, including conditions of terrain, weather, water,
and climate and other conditions.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
4302 the following new item:

``4303. Army Ranger training: instructor staffing; safety.''.

(b) Accomplishment of Required Manning Levels.--(1) If, as
of the date of the enactment of this Act, the number of
officers, and the number of enlisted members, permanently
assigned to the Army Ranger Training Brigade are not each at
(or above) the requirement specified in subsection (a) of
section 4303 of title 10, United States Code, as added by
subsection (a), the Secretary of the Army shall--
(A) take such steps as necessary to accomplish that
requirement within 12 months after such date of enactment;
and
(B) submit to Congress, not later than 90 days after such
date of enactment, a plan to achieve and maintain that
requirement.
(2) The requirement specified in subsection (a) of section
4303 of title 10, United States Code, as added by subsection
(a), shall expire two years after the date (on or after the
date of the enactment of this Act) on which the required
manning levels referred to in paragraph (1) are first
attained.
(c) GAO Assessment.--(1) Not later than one year the date
of the enactment of this Act, the Comptroller General shall
submit to Congress a report providing a preliminary
assessment of the implementation and effectiveness of all
corrective actions taken by the Army as a result of the
February 1995 accident at the Florida Ranger Training Camp,
including an evaluation of the implementation of the required
manning levels established by subsection (a) of section 4303
of title 10, United States Code, as added by subsection (a).
(2) At the end of the two-year period specified in
subsection (b)(2), the Comptroller General shall submit to
Congress a report providing a final assessment of the matters
covered in the preliminary report under paragraph (1). The
report shall include the Comptroller General's recommendation
as to the need to continue required statutory manning levels
as specified in subsection (a) of section 4303 of title 10,
United States Code, as added by subsection (a).
(d) Sense of Congress.--In light of requirement that
particularly dangerous training activities (such as Ranger
training, Search, Evasion, Rescue, and Escape (SERE)
training, SEAL training, and Airborne training) must be
adequately manned and resourced to ensure safety and
effective oversight, it is the sense of Congress--
(1) that the Secretary of Defense, in conjunction with the
Secretaries of the military

[[Page H393]]
departments, should review and, if necessary, enhance oversight of all
such training activities; and
(2) that organizations similar to the safety cells required
to be established for Army Ranger training in section 4303 of
title 10, United States Code, as added by subsection (a),
should (when appropriate) be used for all such training
activities.

SEC. 563. SEPARATION IN CASES INVOLVING EXTENDED CONFINEMENT.

(a) Separation.--(1)(A) Chapter 59 of title 10, United
States Code, is amended by inserting after section 1166 the
following new section:

``Sec. 1167. Members under confinement by sentence of court-
martial: separation after six months confinement

``Except as otherwise provided in regulations prescribed by
the Secretary of Defense, a member sentenced by a court-
martial to a period of confinement for more than six months
may be separated from the member's armed force at any time
after the sentence to confinement has become final under
chapter 47 of this title and the person has served in
confinement for a period of six months.''.
(B) The table of sections at the beginning of chapter 59 of
such title is amended by inserting after the item relating to
section 1166 the following new item:

``1167. Members under confinement by sentence of court-martial:
separation after six months confinement.''.

(2)(A) Chapter 1221 of title 10, United States Code, is
amended by adding at the end the following:

``Sec. 12687. Reserves under confinement by sentence of
court-martial: separation after six months confinement

``Except as otherwise provided in regulations prescribed by
the Secretary of Defense, a Reserve sentenced by a court-
martial to a period of confinement for more than six months
may be separated from that Reserve's armed force at any time
after the sentence to confinement has become final under
chapter 47 of this title and the Reserve has served in
confinement for a period of six months.''.
(B) The table of sections at the beginning of chapter 1221
of such title is amended by inserting at the end thereof the
following new item:

``12687. Reserves under confinement by sentence of court-martial:
separation after six months confinement.''.

(b) Drop From Rolls.--(1) Section 1161(b) of title 10,
United States Code, is amended by striking out ``or (2)'' and
inserting in lieu thereof ``(2) who may be separated under
section 1178 of this title by reason of a sentence to
confinement adjudged by a court-martial, or (3)''.
(2) Section 12684 of such title is amended--
(A) by striking out ``or'' at the end of paragraph (1);
(B) by redesignating paragraph (2) as paragraph (3); and
(C) by inserting after paragraph (1) the following new
paragraph (2):
``(2) who may be separated under section 12687 of this
title by reason of a sentence to confinement adjudged by a
court-martial; or''.

SEC. 564. LIMITATIONS ON REDUCTIONS IN MEDICAL PERSONNEL.

(a) In General.--(1) Chapter 3 of title 10, United States
Code, is amended by inserting after section 129b the
following new section:

``Sec. 129c. Medical personnel: limitations on reductions

``(a) Limitation on Reduction.--For any fiscal year, the
Secretary of Defense may not make a reduction in the number
of medical personnel of the Department of Defense described
in subsection (b) unless the Secretary makes a certification
for that fiscal year described in subsection (c).
``(b) Covered Reductions.--Subsection (a) applies to a
reduction in the number of medical personnel of the
Department of Defense as of the end of a fiscal year to a
number that is less than--
``(1) 95 percent of the number of such personnel at the end
of the immediately preceding fiscal year; or
``(2) 90 percent of the number of such personnel at the end
of the third fiscal year preceding the fiscal year.
``(c) Certification.--A certification referred to in
subsection (a) with respect to reductions in medical
personnel of the Department of Defense for any fiscal year is
a certification by the Secretary of Defense to Congress
that--
``(1) the number of medical personnel being reduced is
excess to the current and projected needs of the Department
of Defense; and
``(2) such reduction will not result in an increase in the
cost of health care services provided under the Civilian
Health and Medical Program of the Uniformed Services under
chapter 55 of this title.
``(d) Policy for Implementing Reductions.--Whenever the
Secretary of Defense directs that there be a reduction in the
total number of military medical personnel of the Department
of Defense, the Secretary shall require that the reduction be
carried out so as to ensure that the reduction is not
exclusively or disproportionatly borne by any one of the
armed forces and is not exclusively or disproportionatly
borne by either the active or the reserve components.
``(e) Definition.--In this section, the term `medical
personnel' means--
``(1) the members of the armed forces covered by the term
`medical personnel' as defined in section 115a(g)(2) of this
title; and
``(2) the civilian personnel of the Department of Defense
assigned to military medical facilities.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
129b the following new item:

``129c. Medical personnel: limitations on reductions.''.

(b) Special Transition Rule for Fiscal Year 1996.--For
purposes of applying subsection (b)(1) of section 129c of
title 10, United States Code, as added by subsection (a),
during fiscal year 1996, the number against which the
percentage limitation of 95 percent is computed shall be the
number of medical personnel of the Department of Defense as
of the end of fiscal year 1994 (rather than the number as of
the end of fiscal year 1995).
(c) Report on Planned Reductions.--(1) Not later than March
1, 1996, the Secretary of Defense shall submit to the
Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives a plan
for the reduction of the number of medical personnel of the
Department of Defense over the five-year period beginning on
October 1, 1996.
(2) The Secretary shall prepare the plan through the
Assistant Secretary of Defense having responsibility for
health affairs, who shall consult in the preparation of the
plan with the Surgeon General of the Army, the Surgeon
General of the Navy, and the Surgeon General of the Air
Force.
(3) For purposes of this subsection, the term ``medical
personnel of the Department of Defense'' shall have the
meaning given the term ``medical personnel'' in section
129c(e) of title 10, United States Code, as added by
subsection (a).
(d) Repeal of Superseded Provisions of Law.--The following
provisions of law are repealed:
(1) Section 711 of the National Defense Authorization Act
for Fiscal Year 1991 (10 U.S.C. 115 note).
(2) Subsection (b) of section 718 of the National Defense
Authorization Act for Fiscal Years 1992 and 1993 (Public Law
102-190; 10 U.S.C. 115 note).
(3) Section 518 of the National Defense Authorization Act
for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 12001
note).

SEC. 565. SENSE OF CONGRESS CONCERNING PERSONNEL TEMPO RATES.

(a) Findings.--Congress makes the following findings:
(1) Excessively high personnel tempo rates for members of
the Armed Forces resulting from high-tempo unit operations
degrades unit readiness and morale and eventually can be
expected to adversely affect unit retention.
(2) The Armed Forces have begun to develop methods to
measure and manage personnel tempo rates.
(3) The Armed Forces have attempted to reduce operations
and personnel tempo for heavily tasked units by employing
alternative capabilities and reducing tasking requirements.
(b) Sense of Congress.--The Secretary of Defense should
continue to enhance the knowledge within the Armed Forces of
personnel tempo and to improve the techniques by which
personnel tempo is defined and managed with a view toward
establishing and achieving reasonable personnel tempo
standards for all personnel, regardless of service, unit, or
assignment.

SEC. 566. SEPARATION BENEFITS DURING FORCE REDUCTION FOR
OFFICERS OF COMMISSIONED CORPS OF NATIONAL
OCEANIC AND ATMOSPHERIC ADMINISTRATION.

(a) Separation Benefits.--Subsection (a) of section 3 of
the Act of August 10, 1956 (33 U.S.C. 857a), is amended by
adding at the end the following new paragraph:
``(15) Section 1174a, special separation benefits (except
that benefits under subsection (b)(2)(B) of such section are
subject to the availability of appropriations for such
purpose and are provided at the discretion of the Secretary
of Commerce).''.
(b) Technical Corrections.--Such section is further
amended--
(1) by striking out ``Coast and Geodetic Survey'' in
subsections (a) and (b) and inserting in lieu thereof
``commissioned officer corps of the National Oceanic and
Atmospheric Administration''; and
(2) in subsection (a), by striking out ``including changes
in those rules made after the effective date of this Act'' in
the matter preceding paragraph (1) and inserting in lieu
thereof ``as those provisions are in effect from time to
time''.
(c) Temporary Early Retirement Authority.--Section 4403
(other than subsection (f)) of the National Defense
Authorization Act for Fiscal Year 1993 (Public Law 102-484;
106 Stat. 2702; 10 U.S.C. 1293 note) shall apply to the
commissioned officer corps of the National Oceanic and
Atmospheric Administration in the same manner and to the same
extent as that section applies to the Department of Defense.
The Secretary of Commerce shall implement the provisions of
that section with respect to such commissioned officer corps
and shall apply the provisions of that section to the
provisions of

[[Page H394]]
the Coast and Geodetic Survey Commissioned Officers' Act of 1948
relating to the retirement of members of such commissioned
officer corps.
(d) Effective Date.--This section shall apply only to
members of the commissioned officer corps of the National
Oceanic and Atmospheric Administration who are separated
after September 30, 1995.

SEC. 567. DISCHARGE OF MEMBERS OF THE ARMED FORCES WHO HAVE
THE HIV-1 VIRUS.

(a) In General.--(1) Section 1177 of title 10, United
States Code, is amended to read as follows:

``Sec. 1177. Members infected with HIV-1 virus: mandatory
discharge or retirement

``(a) Mandatory Separation.--A member of the armed forces
who is HIV-positive shall be separated. Such separation shall
be made on a date determined by the Secretary concerned,
which shall be as soon as practicable after the date on which
the determination is made that the member is HIV-positive and
not later than the last day of the sixth month beginning
after such date.
``(b) Form of Separation.--If a member to be separated
under this section is eligible to retire under any provision
of law or to be transferred to the Fleet Reserve or Fleet
Marine Corps Reserve, the member shall be so retired or so
transferred. Otherwise, the member shall be discharged. The
characterization of the service of the member shall be
determined without regard to the determination that the
member is HIV-positive.
``(c) Deferral of Separation for Members in 18-Year
Retirement Sanctuary.--In the case of a member to be
discharged under this section who on the date on which the
member is to be discharged is within two years of qualifying
for retirement under any provision of law, or of qualifying
for transfer to the Fleet Reserve or Fleet Marine Corps
Reserve under section 6330 of this title, the member may, as
determined by the Secretary concerned, be retained on active
duty until the member is qualified for retirement or transfer
to the Fleet Reserve or Fleet Marine Corps Reserve, as the
case may be, and then be so retired or transferred, unless
the member is sooner retired or discharged under any other
provision of law.
``(d) Separation To Be Considered Involuntary.--A
separation under this section shall be considered to be an
involuntary separation for purposes of any other provision of
law.
``(e) Entitlement to Health Care.--A member separated under
this section shall be entitled to medical and dental care
under chapter 55 of this title to the same extent and under
the same conditions as a person who is entitled to such care
under section 1074(b) of this title.
``(f) Counseling About Available Medical Care.--A member to
be separated under this section shall be provided
information, in writing, before such separation of the
available medical care (through the Department of Veterans
Affairs and otherwise) to treat the member's condition. Such
information shall include identification of specific medical
locations near the member's home of record or point of
discharge at which the member may seek necessary medical
care.
``(g) HIV-Positive Members.--A member shall be considered
to be HIV-positive for purposes of this section if there is
serologic evidence that the member is infected with the virus
known as Human Immunodeficiency Virus-1 (HIV-1), the virus
most commonly associated with the acquired immune deficiency
syndrome (AIDS) in the United States. Such serologic evidence
shall be considered to exist if there is a reactive result
given by an enzyme-linked immunosorbent assay (ELISA)
serologic test that is confirmed by a reactive and diagnostic
immunoelectrophoresis test (Western blot) on two separate
samples. Any such serologic test must be one that is approved
by the Food and Drug Administration.''.
(2) The item relating to such section in the table of
sections at the beginning of chapter 59 of such title is
amended to read as follows:

``1177. Members infected with HIV-1 virus: mandatory discharge or
retirement.''.

(b) Effective Date.--Section 1177 of title 10, United
States Code, as amended by subsection (a), applies with
respect to members of the Armed Forces determined to be HIV-
positive before, on, or after the date of the enactment of
this Act. In the case of a member of the Armed Forces
determined to be HIV-positive before such date, the deadline
for separation of the member under subsection (a) of such
section, as so amended, shall be determined from the date of
the enactment of this Act (rather than from the date of such
determination).

SEC. 568. REVISION AND CODIFICATION OF MILITARY FAMILY ACT
AND MILITARY CHILD CARE ACT.

(a) In General.--(1) Subtitle A of title 10, United States
Code, is amended by inserting after chapter 87 the following
new chapter:

``CHAPTER 88--MILITARY FAMILY PROGRAMS AND MILITARY CHILD CARE

``Subchapter Sec.
Military Family Programs..........................................1781
Military Child Care...............................................1791

``SUBCHAPTER I--MILITARY FAMILY PROGRAMS

``Sec.
``1781. Office of Family Policy.
``1782. Surveys of military families.
``1783. Family members serving on advisory committees.
``1784. Employment opportunities for military spouses.
``1785. Youth sponsorship program.
``1786. Dependent student travel within the United States.
``1787. Reporting of child abuse.

``Sec. 1781. Office of Family Policy

``(a) Establishment.--There is in the Office of the
Secretary of Defense an Office of Family Policy (hereinafter
in this section referred to as the `Office'). The Office
shall be under the Assistant Secretary of Defense for Force
Management and Personnel.
``(b) Duties.--The Office--
``(1) shall coordinate programs and activities of the
military departments to the extent that they relate to
military families; and
``(2) shall make recommendations to the Secretaries of the
military departments with respect to programs and policies
regarding military families.
``(c) Staff.--The Office shall have not less than five
professional staff members.

``Sec. 1782. Surveys of military families

``(a) Authority.--The Secretary of Defense may conduct
surveys of members of the armed forces on active duty or in
an active status, members of the families of such members,
and retired members of the armed forces to determine the
effectiveness of Federal programs relating to military
families and the need for new programs.
``(b) Responses To Be Voluntary.--Responses to surveys
conducted under this section shall be voluntary.
``(c) Federal Recordkeeping Requirements.--With respect to
such surveys, family members of members of the armed forces
and reserve and retired members of the armed forces shall be
considered to be employees of the United States for purposes
of section 3502(3)(A)(i) of title 44.

``Sec. 1783. Family members serving on advisory committees

``A committee within the Department of Defense which
advises or assists the Department in the performance of any
function which affects members of military families and which
includes members of military families in its membership shall
not be considered an advisory committee under section 3(2) of
the Federal Advisory Committee Act (5 U.S.C. App.) solely
because of such membership.

``Sec. 1784. Employment opportunities for military spouses

``(a) Authority.--The President shall order such measures
as the President considers necessary to increase employment
opportunities for spouses of members of the armed forces.
Such measures may include--
``(1) excepting, pursuant to section 3302 of title 5, from
the competitive service positions in the Department of
Defense located outside of the United States to provide
employment opportunities for qualified spouses of members of
the armed forces in the same geographical area as the
permanent duty station of the members; and
``(2) providing preference in hiring for positions in
nonappropriated fund activities to qualified spouses of
members of the armed forces stationed in the same
geographical area as the nonappropriated fund activity for
positions in wage grade UA-8 and below and equivalent
positions and for positions paid at hourly rates.
``(b) Regulations.--The Secretary of Defense shall
prescribe regulations--
``(1) to implement such measures as the President orders
under subsection (a);
``(2) to provide preference to qualified spouses of members
of the armed forces in hiring for any civilian position in
the Department of Defense if the spouse is among persons
determined to be best qualified for the position and if the
position is located in the same geographical area as the
permanent duty station of the member;
``(3) to ensure that notice of any vacant position in the
Department of Defense is provided in a manner reasonably
designed to reach spouses of members of the armed forces
whose permanent duty stations are in the same geographic area
as the area in which the position is located; and
``(4) to ensure that the spouse of a member of the armed
forces who applies for a vacant position in the Department of
Defense shall, to the extent practicable, be considered for
any such position located in the same geographic area as the
permanent duty station of the member.
``(c) Status of Preference Eligibles.--Nothing in this
section shall be construed to provide a spouse of a member of
the armed forces with preference in hiring over an individual
who is a preference eligible.

``Sec. 1785. Youth sponsorship program

``(a) Requirement.--The Secretary of Defense shall require
that there be at each military installation a youth
sponsorship program to facilitate the integration of
dependent children of members of the armed forces into new
surroundings when moving to that military installation as a
result of a parent's permanent change of station.
``(b) Description of Programs.--The program at each
installation shall provide for involvement of dependent
children of members presently stationed at the military
installation and shall be directed primarily toward children
in their preteen and teenage years.

``Sec. 1786. Dependent student travel within the United
States

``Funds available to the Department of Defense for the
travel and transportation of dependent students of members of
the armed

[[Page H395]]
forces stationed overseas may be obligated for transportation
allowances for travel within or between the contiguous
States.

``Sec. 1787. Reporting of child abuse

``(a) In General.--The Secretary of Defense shall request
each State to provide for the reporting to the Secretary of
any report the State receives of known or suspected instances
of child abuse and neglect in which the person having care of
the child is a member of the armed forces (or the spouse of
the member).
``(b) Definition.--In this section, the term `child abuse
and neglect' has the meaning provided in section 3(1) of the
Child Abuse Prevention and Treatment Act (42 U.S.C. 5102).

``SUBCHAPTER II--MILITARY CHILD CARE

``Sec.
``1791. Funding for military child care.
``1792. Child care employees.
``1793. Parent fees.
``1794. Child abuse prevention and safety at facilities.
``1795. Parent partnerships with child development centers.
``1796. Subsidies for family home day care.
``1797. Early childhood education program.
``1798. Definitions.

``Sec. 1791. Funding for military child care

``It is the policy of Congress that the amount of
appropriated funds available during a fiscal year for
operating expenses for military child development centers and
programs shall be not less than the amount of child care fee
receipts that are estimated to be received by the Department
of Defense during that fiscal year.

``Sec. 1792. Child care employees

``(a) Required Training.--(1) The Secretary of Defense
shall prescribe regulations implementing, a training program
for child care employees. Those regulations shall apply
uniformly among the military departments. Subject to
paragraph (2), satisfactory completion of the training
program shall be a condition of employment of any person as a
child care employee.
``(2) Under those regulations, the Secretary shall require
that each child care employee complete the training program
not later than six months after the date on which the
employee is employed as a child care employee.
``(3) The training program established under this
subsection shall cover, at a minimum, training in the
following:
``(A) Early childhood development.
``(B) Activities and disciplinary techniques appropriate to
children of different ages.
``(C) Child abuse prevention and detection.
``(D) Cardiopulmonary resuscitation and other emergency
medical procedures.
``(b) Training and Curriculum Specialists.--(1) The
Secretary of Defense shall require that at least one employee
at each military child development center be a specialist in
training and curriculum development. The Secretary shall
ensure that such employees have appropriate credentials and
experience.
``(2) The duties of such employees shall include the
following:
``(A) Special teaching activities at the center.
``(B) Daily oversight and instruction of other child care
employees at the center.
``(C) Daily assistance in the preparation of lesson plans.
``(D) Assistance in the center's child abuse prevention and
detection program.
``(E) Advising the director of the center on the
performance of other child care employees.
``(3) Each employee referred to in paragraph (1) shall be
an employee in a competitive service position.
``(c) Competitive Rates of Pay.--For the purpose of
providing military child development centers with a qualified
and stable civilian workforce, employees at a military
installation who are directly involved in providing child
care and are paid from nonappropriated funds--
``(1) in the case of entry-level employees, shall be paid
at rates of pay competitive with the rates of pay paid to
other entry-level employees at that installation who are
drawn from the same labor pool; and
``(2) in the case of other employees, shall be paid at
rates of pay substantially equivalent to the rates of pay
paid to other employees at that installation with similar
training, seniority, and experience.
``(d) Employment Preference Program for Military Spouses.--
(1) The Secretary of Defense shall conduct a program under
which qualified spouses of members of the armed forces shall
be given a preference in hiring for the position of child
care employee in a position paid from nonappropriated funds
if the spouse is among persons determined to be best
qualified for the position.
``(2) A spouse who is provided a preference under this
subsection at a military child development center may not be
precluded from obtaining another preference, in accordance
with section 1794 of this title, in the same geographic area
as the military child development center.
``(e) Competitive Service Position Defined.--In this
section, the term `competitive service position' means a
position in the competitive service, as defined in section
2102(a)(1) of title 5.

``Sec. 1793. Parent fees

``(a) In General.--The Secretary of Defense shall prescribe
regulations establishing fees to be charged parents for the
attendance of children at military child development centers.
Those regulations shall be uniform for the military
departments and shall require that, in the case of children
who attend the centers on a regular basis, the fees shall be
based on family income.
``(b) Local Waiver Authority.--The Secretary of Defense may
provide authority to installation commanders, on a case-by-
case basis, to establish fees for attendance of children at
child development centers at rates lower than those
prescribed under subsection (a) if the rates prescribed under
subsection (a) are not competitive with rates at local non-
military child development centers.

``Sec. 1794. Child abuse prevention and safety at facilities

``(a) Child Abuse Task Force.--The Secretary of Defense
shall maintain a special task force to respond to allegations
of widespread child abuse at a military installation. The
task force shall be composed of personnel from appropriate
disciplines, including, where appropriate, medicine,
psychology, and childhood development. In the case of such
allegations, the task force shall provide assistance to the
commander of the installation, and to parents at the
installation, in helping them to deal with such allegations.
``(b) National Hotline.--(1) The Secretary of Defense shall
maintain a national telephone number for persons to use to
report suspected child abuse or safety violations at a
military child development center or family home day care
site. The Secretary shall ensure that such reports may be
made anonymously if so desired by the person making the
report. The Secretary shall establish procedures for
following up on complaints and information received over that
number.
``(2) The Secretary shall publicize the existence of the
number.
``(c) Assistance From Local Authorities.--The Secretary of
Defense shall prescribe regulations requiring that, in a case
of allegations of child abuse at a military child development
center or family home day care site, the commander of the
military installation or the head of the task force
established under subsection (a) shall seek the assistance of
local child protective authorities if such assistance is
available.
``(d) Safety Regulations.--The Secretary of Defense shall
prescribe regulations on safety and operating procedures at
military child development centers. Those regulations shall
apply uniformly among the military departments.
``(e) Inspections.--The Secretary of Defense shall require
that each military child development center be inspected not
less often than four times a year. Each such inspection shall
be unannounced. At least one inspection a year shall be
carried out by a representative of the installation served by
the center, and one inspection a year shall be carried out by
a representative of the major command under which that
installation operates.
``(f) Remedies for Violations.--(1) Except as provided in
paragraph (2), any violation of a safety, health, or child
welfare law or regulation (discovered at an inspection or
otherwise) at a military child development center shall be
remedied immediately.
``(2) In the case of a violation that is not life
threatening, the commander of the major command under which
the installation concerned operates may waive the requirement
that the violation be remedied immediately for a period of up
to 90 days beginning on the date of the discovery of the
violation. If the violation is not remedied as of the end of
that 90-day period, the military child development center
shall be closed until the violation is remedied. The
Secretary of the military department concerned may waive the
preceding sentence and authorize the center to remain open in
a case in which the violation cannot reasonably be remedied
within that 90-day period or in which major facility
reconstruction is required.

``Sec. 1795. Parent partnerships with child development
centers

``(a) Parent Boards.--The Secretary of Defense shall
require that there be established at each military child
development center a board of parents, to be composed of
parents of children attending the center. The board shall
meet periodically with staff of the center and the commander
of the installation served by the center for the purpose of
discussing problems and concerns. The board, together with
the staff of the center, shall be responsible for
coordinating the parent participation program described in
subsection (b).
``(b) Parent Participation Programs.--The Secretary of
Defense shall require the establishment of a parent
participation program at each military child development
center. As part of such program, the Secretary of Defense may
establish fees for attendance of children at such a center,
in the case of parents who participate in the parent
participation program at that center, at rates lower than the
rates that otherwise apply.

``Sec. 1796. Subsidies for family home day care

``The Secretary of Defense may use appropriated funds
available for military child care purposes to provide
assistance to family home day care providers so that family
home day care services can be provided to members of the
armed forces at a cost comparable to the cost of services
provided by military child development centers. The Secretary
shall prescribe regulations for the provision of such
assistance.

``Sec. 1797. Early childhood education program

``The Secretary of Defense shall require that all military
child development centers

[[Page H396]]
meet standards of operation necessary for accreditation by an
appropriate national early childhood programs accrediting
body.

``Sec. 1798. Definitions

``In this subchapter:
``(1) The term `military child development center' means a
facility on a military installation (or on property under the
jurisdiction of the commander of a military installation) at
which child care services are provided for members of the
armed forces or any other facility at which such child care
services are provided that is operated by the Secretary of a
military department.
``(2) The term `family home day care' means home-based
child care services that are provided for members of the
armed forces by an individual who (A) is certified by the
Secretary of the military department concerned as qualified
to provide those services, and (B) provides those services on
a regular basis for compensation.
``(3) The term `child care employee' means a civilian
employee of the Department of Defense who is employed to work
in a military child development center (regardless of whether
the employee is paid from appropriated funds or
nonappropriated funds).
``(4) The term `child care fee receipts' means those
nonappropriated funds that are derived from fees paid by
members of the armed forces for child care services provided
at military child development centers.''.
(2) The tables of chapters at the beginning of subtitle A,
and at the beginning of part II of subtitle A, of title 10,
United States Code, are amended by inserting after the item
relating to chapter 87 the following new item:

``88. Military Family Programs and Military Child Care......1781''.....

(b) Report on Five-Year Demand for Child Care.--(1) Not
later than the date of the submission of the budget for
fiscal year 1997 pursuant to section 1105 of title 31, United
States Code, the Secretary of Defense shall submit to
Congress a report on the expected demand for child care by
military and civilian personnel of the Department of Defense
during fiscal years 1997 through 2001.
(2) The report shall include--
(A) a plan for meeting the expected child care demand
identified in the report; and
(B) an estimate of the cost of implementing that plan.
(3) The report shall also include a description of methods
for monitoring family home day care programs of the military
departments.
(c) Plan for Implementation of Accreditation Requirement.--
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 carrying
out the requirements of section 1787 of title 10, United
States Code, as added by subsection (a). The plan shall be
submitted not later than April 1, 1997.
(d) Continuation of Delegation of Authority With Respect to
Hiring Preference for Qualified Military Spouses.--The
provisions of Executive Order No. 12568, issued October 2,
1986 (10 U.S.C. 113 note), shall apply as if the reference in
that Executive order to section 806(a)(2) of the Department
of Defense Authorization Act of 1986 refers to section 1784
of title 10, United States Code, as added by subsection (a).
(e) Repealer.--The following provisions of law are
repealed:
(1) The Military Family Act of 1985 (title VIII of Public
Law 99-145; 10 U.S.C. 113 note).
(2) The Military Child Care Act of 1989 (title XV of Public
Law 101-189; 10 U.S.C. 113 note).

SEC. 569. DETERMINATION OF WHEREABOUTS AND STATUS OF MISSING
PERSONS.

(a) Purpose.--The purpose of this section is to ensure that
any member of the Armed Forces (and any Department of Defense
civilian employee or contractor employee who serves with or
accompanies the Armed Forces in the field under orders) who
becomes missing or unaccounted for is ultimately accounted
for by the United States and, as a general rule, is not
declared dead solely because of the passage of time.
(b) In General.--(1) Part II of subtitle A of title 10,
United States Code, is amended by inserting after chapter 75
the following new chapter:

``CHAPTER 76--MISSING PERSONS

``Sec.
``1501. System for accounting for missing persons.
``1502. Missing persons: initial report.
``1503. Actions of Secretary concerned; initial board inquiry.
``1504. Subsequent board of inquiry.
``1505. Further review.
``1506. Personnel files.
``1507. Recommendation of status of death.
``1508. Judicial review.
``1509. Preenactment, special interest cases.
``1510. Applicability to Coast Guard.
``1511. Return alive of person declared missing or dead.
``1512. Effect on State law.
``1513. Definitions.

``Sec. 1501. System for accounting for missing persons

``(a) Office for Missing Personnel.--(1) The Secretary of
Defense shall establish within the Office of the Secretary of
Defense an office to have responsibility for Department of
Defense policy relating to missing persons. Subject to the
authority, direction, and control of the Secretary of
Defense, the responsibilities of the office shall include--
``(A) policy, control, and oversight within the Department
of Defense of the entire process for investigation and
recovery related to missing persons (including matters
related to search, rescue, escape, and evasion); and
``(B) coordination for the Department of Defense with other
departments and agencies of the United States on all matters
concerning missing persons.
``(2) In carrying out the responsibilities of the office
established under this subsection, the head of the office
shall be responsible for the coordination for such purposes
within the Department of Defense among the military
departments, the Joint Staff, and the commanders of the
combatant commands.
``(3) The office shall establish policies, which shall
apply uniformly throughout the Department of Defense, for
personnel recovery (including search, rescue, escape, and
evasion).
``(4) The office shall establish procedures to be followed
by Department of Defense boards of inquiry, and by officials
reviewing the reports of such boards, under this chapter.
``(b) Uniform DOD Procedures.--(1) The Secretary of Defense
shall prescribe procedures, to apply uniformly throughout the
Department of Defense, for--
``(A) the determination of the status of persons described
in subsection (c); and
``(B) for the systematic, comprehensive, and timely
collection, analysis, review, dissemination, and periodic
update of information related to such persons.
``(2) Such procedures may provide for the delegation by the
Secretary of Defense of any responsibility of the Secretary
under this chapter to the Secretary of a military department.
``(3) Such procedures shall be prescribed in a single
directive applicable to all elements of the Department of
Defense.
``(4) As part of such procedures, the Secretary may provide
for the extension, on a case-by-case basis, of any time limit
specified in section 1502, 1503, or 1504 of this title. Any
such extension may not be for a period in excess of the
period with respect to which the extension is provided.
Subsequent extensions may be provided on the same basis.
``(c) Covered Persons.--Section 1502 of this title applies
in the case of the following persons:
``(1) Any member of the armed forces on active duty who
becomes involuntarily absent as a result of a hostile action,
or under circumstances suggesting that the involuntary
absence is a result of a hostile action, and whose status is
undetermined or who is unaccounted for.
``(2) Any civilian employee of the Department of Defense,
and any employee of a contractor of the Department of
Defense, who serves with or accompanies the armed forces in
the field under orders who becomes involuntarily absent as a
result of a hostile action, or under circumstances suggesting
that the involuntary absence is a result of a hostile action,
and whose status is undetermined or who is unaccounted for.
``(d) Primary Next of Kin.--The individual who is primary
next of kin of any person prescribed in subsection (c) may
for purposes of this chapter designate another individual to
act on behalf of that individual as primary next of kin. The
Secretary concerned shall treat an individual so designated
as if the individual designated were the primary next of kin
for purposes of this chapter. A designation under this
subsection may be revoked at any time by the person who made
the designation.
``(e) Termination of Applicability of Procedures When
Missing Person Is Accounted for.--The provisions of this
chapter relating to boards of inquiry and to the actions
by the Secretary concerned on the reports of those boards
shall cease to apply in the case of a missing person upon
the person becoming accounted for or otherwise being
determined to be in a status other than missing.
``(f) Secretary Concerned.--In this chapter, the term
`Secretary concerned' includes, in the case of a civilian
employee of the Department of Defense or contractor of the
Department of Defense, the Secretary of the military
department or head of the element of the Department of
Defense employing the employee or contracting with the
contractor, as the case may be.

``Sec. 1502. Missing persons: initial report

``(a) Preliminary Assessment and Recommendation by
Commander.--After receiving information that the whereabouts
and status of a person described in section 1501(c) of this
title is uncertain and that the absence of the person may be
involuntary, the commander of the unit, facility, or area to
or in which the person is assigned shall make a preliminary
assessment of the circumstances. If, as a result of that
assessment, the commander concludes that the person is
missing, the commander shall--
``(1) recommend that the person be placed in a missing
status; and
``(2) not later than 48 hours after receiving such
information, transmit a report containing that recommendation
to the theater component commander with jurisdiction over the
missing person in accordance with procedures prescribed under
section 1501(b) of this title.
``(b) Transmission Through Theater Component Commander.--
Upon reviewing a report under subsection (a) recommending
that a person be placed in a missing status, the theater
component commander shall ensure that all necessary actions
are being taken,

[[Page H397]]
and all appropriate assets are being used, to resolve the status of the
missing person. Not later than 14 days after receiving the
report, the theater component commander shall forward the
report to the Secretary of Defense or the Secretary concerned
in accordance with procedures prescribed under section
1501(b) of this title. The theater component commander shall
include with such report a certification that all necessary
actions are being taken, and all appropriate assets are being
used, to resolve the status of the missing person.
``(c) Safeguarding and Forwarding of Records.--A commander
making a preliminary assessment under subsection (a) with
respect to a missing person shall (in accordance with
procedures prescribed under section 1501 of this title)
safeguard and forward for official use any information
relating to the whereabouts and status of the missing person
that results from the preliminary assessment or from actions
taken to locate the person. The theater component commander
through whom the report with respect to the missing person is
transmitted under subsection (b) shall ensure that all
pertinent information relating to the whereabouts and status
of the missing person that results from the preliminary
assessment or from actions taken to locate the person is
properly safeguarded to avoid loss, damage, or modification.

``Sec. 1503. Actions of Secretary concerned; initial board
inquiry

``(a) Determination by Secretary.--Upon receiving a
recommendation under section 1502(b) of this title that a
person be placed in a missing status, the Secretary receiving
the recommendation shall review the recommendation and, not
later than 10 days after receiving such recommendation, shall
appoint a board under this section to conduct an inquiry into
the whereabouts and status of the person.
``(b) Inquiries Involving More Than One Missing Person.--If
it appears to the Secretary who appoints a board under this
section that the absence or missing status of two or more
persons is factually related, the Secretary may appoint a
single board under this section to conduct the inquiry into
the whereabouts and status of all such persons.
``(c) Composition.--(1) A board appointed under this
section to inquire into the whereabouts and status of a
person shall consist of at least one individual described in
paragraph (2) who has experience with and understanding of
military operations or activities similar to the operation or
activity in which the person disappeared.
``(2) An individual referred to in paragraph (1) is the
following:
``(A) A military officer, in the case of an inquiry with
respect to a member of the armed forces.
``(B) A civilian, in the case of an inquiry with respect to
a civilian employee of the Department of Defense or of a
contractor of the Department of Defense.
``(3) An individual may be appointed as a member of a board
under this section only if the individual has a security
clearance that affords the individual access to all
information relating to the whereabouts and status of the
missing persons covered by the inquiry.
``(4) A Secretary appointing a board under this subsection
shall, for purposes of providing legal counsel to the board,
assign to the board a judge advocate, or appoint to the board
an attorney, who has expertise in the law relating to missing
persons, the determination of death of such persons, and the
rights of family members and dependents of such persons.
``(d) Duties of Board.--A board appointed to conduct an
inquiry into the whereabouts and status of a missing person
under this section shall--
``(1) collect, develop, and investigate all facts and
evidence relating to the disappearance or whereabouts and
status of the person;
``(2) collect appropriate documentation of the facts and
evidence covered by the board's investigation;
``(3) analyze the facts and evidence, make findings based
on that analysis, and draw conclusions as to the current
whereabouts and status of the person; and
``(4) with respect to each person covered by the inquiry,
recommend to the Secretary who appointed the board that--
``(A) the person be placed in a missing status; or
``(B) the person be declared to have deserted, to be absent
without leave, or (subject to the requirements of section
1507 of this title) to be dead.
``(e) Board Proceedings.--During the proceedings of an
inquiry under this section, a board shall--
``(1) collect, record, and safeguard all facts, documents,
statements, photographs, tapes, messages, maps, sketches,
reports, and other information (whether classified or
unclassified) relating to the whereabouts and status of each
person covered by the inquiry;
``(2) gather information relating to actions taken to find
the person, including any evidence of the whereabouts and
status of the person arising from such actions; and
``(3) maintain a record of its proceedings.
``(f) Counsel for Missing Person.--(1) The Secretary
appointing a board to conduct an inquiry under this section
shall appoint counsel to represent each person covered by the
inquiry or, in a case covered by subsection (b), one counsel
to represent all persons covered by the inquiry. Counsel
appointed under this paragraph may be referred to as `missing
person's counsel' and represents the interests of the person
covered by the inquiry (and not any member of the person's
family or other interested parties).
``(2) To be appointed as a missing person's counsel, a
person must--
``(A) have the qualifications specified in section 827(b)
of this title (article 27(b) of the Uniform Code of Military
Justice) for trial counsel or defense counsel detailed for a
general court-martial;
``(B) have a security clearance that affords the counsel
access to all information relating to the whereabouts and
status of the person or persons covered by the inquiry; and
``(C) have expertise in the law relating to missing
persons, the determination of the death of such persons, and
the rights of family members and dependents of such persons.
``(3) A missing person's counsel--
``(A) shall have access to all facts and evidence
considered by the board during the proceedings under the
inquiry for which the counsel is appointed;
``(B) shall observe all official activities of the board
during such proceedings;
``(C) may question witnesses before the board; and
``(D) shall monitor the deliberations of the board.
``(4) A missing person's counsel shall assist the board in
ensuring that all appropriate information concerning the case
is collected, logged, filed, and safeguarded.
``(5) A missing person's counsel shall review the report of
the board under subsection (h) and submit to the Secretary
concerned who appointed the board an independent review of
that report. That review shall be made an official part of
the record of the board.
``(g) Access to Proceedings.--The proceedings of a board
during an inquiry under this section shall be closed to the
public (including, with respect to the person covered by the
inquiry, the primary next of kin, other members of the
immediate family, and any other previously designated person
of the person).
``(h) Report.--(1) A board appointed under this section
shall submit to the Secretary who appointed the board a
report on the inquiry carried out by the board. The report
shall include--
``(A) a discussion of the facts and evidence considered by
the board in the inquiry;
``(B) the recommendation of the board under subsection (d)
with respect to each person covered by the report; and
``(C) disclosure of whether classified documents and
information were reviewed by the board or were otherwise used
by the board in forming recommendations under subparagraph
(B).
``(2) A board shall submit a report under this subsection
with respect to the inquiry carried out by the board not
later than 30 days after the date of the appointment of the
board to carry out the inquiry. The report may include a
classified annex.
``(3) The Secretary of Defense shall prescribe procedures
for the release of a report submitted under this subsection
with respect to a missing person. Such procedures shall
provide that the report may not be made public (except as
provided for in subsection (j)) until one year after the date
on which the report is submitted.
``(i) Determination by Secretary.--(1) Not later than 30
days after receiving a report from a board under subsection
(h), the Secretary receiving the report shall review the
report.
``(2) In reviewing a report under paragraph (1), the
Secretary shall determine whether or not the report is
complete and free of administrative error. If the Secretary
determines that the report is incomplete, or that the report
is not free of administrative error, the Secretary may return
the report to the board for further action on the report by
the board.
``(3) Upon a determination by the Secretary that a report
reviewed under this subsection is complete and free of
administrative error, the Secretary shall make a
determination concerning the status of each person covered by
the report, including whether the person shall--
``(A) be declared to be missing;
``(B) be declared to have deserted;
``(C) be declared to be absent without leave; or
``(D) be declared to be dead.
``(j) Report to Family Members and Other Interested
Persons.--Not later than 30 days after the date on which the
Secretary concerned makes a determination of the status of a
person under subsection (i), the Secretary shall take
reasonable actions to--
``(1) provide to the primary next of kin, the other members
of the immediate family, and any other previously designated
person of the person--
``(A) an unclassified summary of the unit commander's
report with respect to the person under section 1502(a) of
this title; and
``(B) the report of the board (including the names of the
members of the board) under subsection (h); and
``(2) inform each individual referred to in paragraph (1)
that the United States will conduct a subsequent inquiry into
the whereabouts and status of the person on or about one year
after the date of the first official notice of the
disappearance of the person, unless information becomes
available sooner that may result in a change in status of the
person.
``(k) Treatment of Determination.--Any determination of the
status of a missing person under subsection (i) shall be
treated as

[[Page H398]]
the determination of the status of the person by all departments and
agencies of the United States.

``Sec. 1504. Subsequent board of inquiry

``(a) Additional Board.--If information that may result in
a change of status of a person covered by a determination
under section 1503(i) of this title becomes available within
one year after the date of the transmission of a report with
respect to the person under section 1502(a)(2) of this title,
the Secretary concerned shall appoint a board under this
section to conduct an inquiry into the information.
``(b) Date of Appointment.--The Secretary concerned shall
appoint a board under this section to conduct an inquiry into
the whereabouts and status of a missing person on or about
one year after the date of the transmission of a report
concerning the person under section 1502(a)(2) of this title.
``(c) Combined Inquiries.--If it appears to the Secretary
concerned that the absence or status of two or more persons
is factually related, the Secretary may appoint one board
under this section to conduct the inquiry into the
whereabouts and status of such persons.
``(d) Composition.--(1) A board appointed under this
section shall be composed of at least three members as
follows:
``(A) In the case of a board that will inquire into the
whereabouts and status of one or more members of the armed
forces (and no civilians described in subparagraph (B)), the
board shall be composed of officers having the grade of major
or lieutenant commander or above.
``(B) In the case of a board that will inquire into the
whereabouts and status of one or more civilian employees of
the Department of Defense or contractors of the Department of
Defense (and no members of the armed forces), the board shall
be composed of--
``(i) not less than three employees of the Department of
Defense whose rate of annual pay is equal to or greater than
the rate of annual pay payable for grade GS-13 of the General
Schedule under section 5332 of title 5; and
``(ii) such members of the armed forces as the Secretary
considers advisable.
``(C) In the case of a board that will inquire into the
whereabouts and status of both one or more members of the
armed forces and one or more civilians described in
subparagraph (B)--
``(i) the board shall include at least one officer
described in subparagraph (A) and at least one employee of
the Department of Defense described in subparagraph (B)(i);
and
``(ii) the ratio of such officers to such employees on the
board shall be roughly proportional to the ratio of the
number of members of the armed forces who are subjects of the
board's inquiry to the number of civilians who are subjects
of the board's inquiry.
``(2) The Secretary concerned shall designate one member of
a board appointed under this section as president of the
board. The president of the board shall have a security
clearance that affords the president access to all
information relating to the whereabouts and status of each
person covered by the inquiry.
``(3) One member of each board appointed under this
subsection shall be an individual who--
``(A) has an occupational specialty similar to that of one
or more of the persons covered by the inquiry; and
``(B) has an understanding of and expertise in the type of
official activities that one or more such persons were
engaged in at the time such person or persons disappeared.
``(4) The Secretary who appoints a board under this
subsection shall, for purposes of providing legal counsel to
the board, assign to the board a judge advocate, or appoint
to the board an attorney, with the same qualifications as
specified in section 1503(c)(4) of this title.
``(e) Duties of Board.--A board appointed under this
section to conduct an inquiry into the whereabouts and status
of a person shall--
``(1) review the reports with respect to the person
transmitted under section 1502(a)(2) of this title and
submitted under section 1503(h) of this title;
``(2) collect and evaluate any document, fact, or other
evidence with respect to the whereabouts and status of the
person that has become available since the determination of
the status of the person under section 1503 of this title;
``(3) draw conclusions as to the whereabouts and status of
the person;
``(4) determine on the basis of the activities under
paragraphs (1) and (2) whether the status of the person
should be continued or changed; and
``(5) submit to the Secretary concerned a report describing
the findings and conclusions of the board, together with a
recommendation for a determination by the Secretary
concerning the whereabouts and status of the person.
``(f) Counsel for Missing Persons.--(1) When the Secretary
concerned appoints a board to conduct an inquiry under this
section, the Secretary shall appoint counsel to represent
each person covered by the inquiry.
``(2) A person appointed as counsel under this subsection
shall meet the qualifications and have the duties set forth
in section 1503(f) of this title for a missing person's
counsel appointed under that section.
``(3) The review of the report of a board on an inquiry
that is submitted by such counsel shall be made an official
part of the record of the board with respect to the inquiry.
``(g) Attendance of Family Members and Certain Other
Interested Persons at Proceedings.--(1) With respect to any
person covered by an inquiry under this section, the primary
next of kin, other members of the immediate family, and any
other previously designated person of the person may attend
the proceedings of the board during the inquiry.
``(2) The Secretary concerned shall take reasonable actions
to notify each individual referred to in paragraph (1) of the
opportunity to attend the proceedings of a board. Such notice
shall be provided not less than 60 days before the first
meeting of the board.
``(3) An individual who receives notice under paragraph (2)
shall notify the Secretary of the intent, if any, of that
individual to attend the proceedings of the board not later
than 21 days after the date on which the individual receives
the notice.
``(4) Each individual who notifies the Secretary under
paragraph (3) of the individual's intent to attend the
proceedings of the board--
``(A) in the case of an individual who is the primary next
of kin or the previously designated person, may attend the
proceedings of the board with private counsel;
``(B) shall have access to the personnel file of the
missing person, to unclassified reports, if any, of the board
appointed under section 1503 of this title to conduct the
inquiry into the whereabouts and status of the person, and to
any other unclassified information or documents relating to
the whereabouts and status of the person;
``(C) shall be afforded the opportunity to present
information at the proceedings of the board that such
individual considers to be relevant to those proceedings; and
``(D) subject to paragraph (5), shall be given the
opportunity to submit in writing an objection to any
recommendation of the board under subsection (i) as to the
status of the missing person.
``(5)(A) Individuals who wish to file objections under
paragraph (4)(D) to any recommendation of the board shall--
``(i) submit a letter of intent to the president of the
board not later than 15 days after the date on which the
recommendations are made; and
``(ii) submit to the president of the board the objections
in writing not later than 30 days after the date on which the
recommendations are made.
``(B) The president of a board shall include any objections
to a recommendation of the board that are submitted to the
president of the board under subparagraph (A) in the report
of the board containing the recommendation under subsection
(i).
``(6) An individual referred to in paragraph (1) who
attends the proceedings of a board under this subsection
shall not be entitled to reimbursement by the United States
for any costs (including travel, lodging, meals, local
transportation, legal fees, transcription costs, witness
expenses, and other expenses) incurred by that individual in
attending such proceedings.
``(h) Availability of Information to Boards.--(1) In
conducting proceedings in an inquiry under this section, a
board may secure directly from any department or agency of
the United States any information that the board considers
necessary in order to conduct the proceedings.
``(2) Upon written request from the president of a board,
the head of a department or agency of the United States shall
release information covered by the request to the board. In
releasing such information, the head of the department or
agency shall--
``(A) declassify to an appropriate degree classified
information; or
``(B) release the information in a manner not requiring the
removal of markings indicating the classified nature of the
information.
``(3)(A) If a request for information under paragraph (2)
covers classified information that cannot be declassified, or
if the classification markings cannot be removed before
release from the information covered by the request, or if
the material cannot be summarized in a manner that prevents
the release of classified information, the classified
information shall be made available only to the president of
the board making the request and the counsel for the missing
person appointed under subsection (f).
``(B) The president of a board shall close to persons who
do not have appropriate security clearances the proceeding of
the board at which classified information is discussed.
Participants at a proceeding of a board at which classified
information is discussed shall comply with all applicable
laws and regulations relating to the disclosure of classified
information. The Secretary concerned shall assist the
president of a board in ensuring that classified information
is not compromised through board proceedings.
``(i) Recommendation on Status.--(1) Upon completion of an
inquiry under this subsection, a board shall make a
recommendation as to the current whereabouts and status of
each missing person covered by the inquiry.
``(2) A board may not recommend under paragraph (1) that a
person be declared dead unless in making the recommendation
the board complies with section 1507 of this title.
``(j) Report.--A board appointed under this section shall
submit to the Secretary concerned a report on the inquiry
carried out by the board, together with the evidence
considered by the board during the inquiry. The report may
include a classified annex.

[[Page H399]]

``(k) Actions by Secretary Concerned.--(1) Not later than
30 days after the receipt of a report from a board under
subsection (j), the Secretary shall review--
``(A) the report;
``(B) the review of the report submitted to the Secretary
under subsection (f)(3) by the counsel for each person
covered by the report; and
``(C) the objections, if any, to the report submitted to
the president of the board under subsection (g)(5).
``(2) In reviewing a report under paragraph (1) (including
the objections described in subparagraph (C) of that
paragraph), the Secretary concerned shall determine whether
or not the report is complete and free of administrative
error. If the Secretary determines that the report is
incomplete, or that the report is not free of administrative
error, the Secretary may return the report to the board for
further action on the report by the board.
``(3) Upon a determination by the Secretary that a report
reviewed under this subsection is complete and free of
administrative error, the Secretary shall make a
determination concerning the status of each person covered by
the report.
``(l) Report to Family Members and Other Interested
Persons.--Not later than 60 days after the date on which the
Secretary concerned makes a determination with respect to a
missing person under subsection (k), the Secretary shall--
``(1) provide the report reviewed by the Secretary in
making the determination to the primary next of kin, the
other members of the immediate family, and any other
previously designated person of the person; and
``(2) in the case of a person who continues to be in a
missing status, inform each individual referred to in
paragraph (1) that the United States will conduct a further
investigation into the whereabouts and status of the person
as specified in section 1505 of this title.
``(m) Treatment of Determination.--Any determination of the
status of a missing person under subsection (k) shall
supersede the determination of the status of the person under
section 1503 of this title and shall be treated as the
determination of the status of the person by all departments
and agencies of the United States.

``Sec. 1505. Further review

``(a) Subsequent Review.--The Secretary concerned shall
conduct subsequent inquiries into the whereabouts and status
of any person determined by the Secretary under section 1504
of this title to be in a missing status.
``(b) Frequency of Subsequent Reviews.--(1) In the case of
a missing person who was last known to be alive or who was
last suspected of being alive, the Secretary shall appoint a
board to conduct an inquiry with respect to a person under
this
subsection--
``(A) on or about three years after the date of the initial
report of the disappearance of the person under section
1502(a) of this title; and
``(B) not later than every three years thereafter.
``(2) In addition to appointment of boards under paragraph
(1), the Secretary shall appoint a board to conduct an
inquiry with respect to a missing person under this
subsection upon receipt of information that could result in a
change of status of the missing person. When the Secretary
appoints a board under this paragraph, the time for
subsequent appointments of a board under paragraph (1)(B)
shall be determined from the date of the receipt of such
information.
``(3) The Secretary is not required to appoint a board
under paragraph (1) with respect to the disappearance of any
person--
``(A) more than 30 years after the initial report of the
disappearance of the missing person required by section 1502
of this title; or
``(B) if, before the end of such 30-year period, the
missing person is accounted for.
``(c) Action Upon Discovery or Receipt of Information.--(1)
Whenever any United States intelligence agency or other
element of the Government finds or receives information that
may be related to a missing person, the information shall
promptly be forwarded to the office established under section
1501 of this title.
``(2) Upon receipt of information under paragraph (1), the
head of the office established under section 1501 of this
title shall as expeditiously as possible ensure that the
information is added to the appropriate case file for that
missing person and notify (A) the designated missing person's
counsel for that person, and (B) the primary next of kin and
any previously designated person for the missing person of
the existence of that information.
``(3) The head of the office established under section 1501
of this title, with the advice of the missing person's
counsel notified under paragraph (2), shall determine whether
the information is significant enough to require a board
review under this section.
``(d) Conduct of Proceedings.--If it is determined that
such a board should be appointed, the appointment of, and
activities before, a board appointed under this section shall
be governed by the provisions of section 1504 of this title
with respect to a board appointed under that section.

``Sec. 1506. Personnel files

``(a) Information in Files.--Except as provided in
subsections (b), (c), and (d), the Secretary concerned shall,
to the maximum extent practicable, ensure that the personnel
file of a missing person contains all information in the
possession of the United States relating to the disappearance
and whereabouts and status of the person.
``(b) Classified Information.--The Secretary concerned may
withhold classified information from a personnel file under
this section. If the Secretary concerned withholds classified
information from a personnel file, the Secretary shall ensure
that the file contains the following:
``(1) A notice that the withheld information exists.
``(2) A notice of the date of the most recent review of the
classification of the withheld information.
``(c) Protection of Privacy.--The Secretary concerned shall
maintain personnel files under this section, and shall permit
disclosure of or access to such files, in accordance with the
provisions of section 552a of title 5 and with other
applicable laws and regulations pertaining to the privacy of
the persons covered by the files.
``(d) Privileged Information.--(1) The Secretary concerned
shall withhold from personnel files under this section, as
privileged information, debriefing reports provided by
missing persons returned to United States control which are
obtained under a promise of confidentiality made for the
purpose of ensuring the fullest possible disclosure of
information.
``(2) If a debriefing report contains non-derogatory
information about the status and whereabouts of a missing
person other than the source of the debriefing report, the
Secretary concerned shall prepare an extract of the non-
derogatory information. That extract, following a review by
the source of the debriefing report, shall be placed in the
personnel file of the missing person in such a manner as to
protect the identity of the source providing the information.
``(3) Whenever the Secretary concerned withholds a
debriefing report from a personnel file under this
subsection, the Secretary shall ensure that the file contains
a notice that withheld information exists.
``(e) Wrongful Withholding.--Except as provided in
subsections (a) through (d), any person who knowingly and
willfully withholds from the personnel file of a missing
person any information relating to the disappearance or
whereabouts and status of a missing person shall be fined as
provided in title 18 or imprisoned not more than one year, or
both.
``(f) Availability of Information.--The Secretary concerned
shall, upon request, make available the contents of the
personnel file of a missing person to the primary next of
kin, the other members of the immediate family, or any other
previously designated person of the person.

``Sec. 1507. Recommendation of status of death

``(a) Requirements Relating to Recommendation.--A board
appointed under section 1503, 1504, or 1505 of this title may
not recommend that a person be declared dead unless--
``(1) credible evidence exists to suggest that the person
is dead;
``(2) the United States possesses no credible evidence that
suggests that the person is alive; and
``(3) representatives of the United States--
``(A) have made a complete search of the area where the
person was last seen (unless, after making a good faith
effort to obtain access to such area, such representatives
are not granted such access); and
``(B) have examined the records of the government or entity
having control over the area where the person was last seen
(unless, after making a good faith effort to obtain access to
such records, such representatives are not granted such
access).
``(b) Submittal of Information on Death.--If a board
appointed under section 1503, 1504, or 1505 of this title
makes a recommendation that a missing person be declared
dead, the board shall include in the report of the board with
respect to the person under that section the following:
``(1) A detailed description of the location where the
death occurred.
``(2) A statement of the date on which the death occurred.
``(3) A description of the location of the body, if
recovered.
``(4) If the body has been recovered and is not
identifiable through visual means, a certification by a
practitioner of an appropriate forensic science that the body
recovered is that of the missing person.

``Sec. 1508. Judicial review

``(a) Right of Review.--A person who is the primary next of
kin (or the previously designated person) of a person who is
the subject of a finding described in subsection (b) may
obtain judicial review in a United States district court of
that finding, but only on the basis of a claim that there is
information that could affect the status of the missing
person's case that was not adequately considered during the
administrative review process under this chapter. Any such
review shall be as provided in section 706 of title 5.
``(b) Findings for Which Judicial Review May be Sought.--
Subsection (a) applies to the following findings:
``(1) A finding by a board appointed under section 1504 or
1505 of this title that a missing person is dead.
``(2) A finding by a board appointed under section 1509 of
this title that confirms that a missing person formerly
declared dead is in fact dead.
``(c) Subsequent Review.--Appeals from a decision of the
district court shall be taken

[[Page H400]]
to the appropriate United States court of appeals and to the Supreme
Court as provided by law.

``Sec. 1509. Preenactment, special interest cases

``(a) Review of Status.--In the case of an unaccounted for
person covered by section 1501(c) of this title who is
described in subsection (b), if new information that could
change the status of that person is found or received by a
United States intelligence agency, by a Department of Defense
agency, or by a person specified in section 1504(g) of this
title, that information shall be provided to the Secretary of
Defense with a request that the Secretary evaluate the
information in accordance with sections 1505(c) and 1505(d)
of this title.
``(b) Cases Eligible for Review.--The cases eligible for
review under this section are the following:
``(1) With respect to the Korean conflict, any unaccounted
for person who was classified as a prisoner of war or as
missing in action during that conflict and who (A) was known
to be or suspected to be alive at the end of that conflict,
or (B) was classified as missing in action and whose capture
was possible.
``(2) With respect to the Cold War, any unaccounted for
person who was engaged in intelligence operations (such as
aerial `ferret' reconnaissance missions over and around the
Soviet Union and China) during the Cold War.
``(3) With respect to the Indochina war era, any
unaccounted for person who was classified as a prisoner of
war or as missing in action during the Indochina conflict.
``(c) Special Rule for Persons Classified as `KIA/BNR'.--In
the case of a person described in subsection (b) who was
classified as `killed in action/body not recovered', the case
of that person may be reviewed under this section only if the
new information referred to in subsection (a) is compelling.
``(d) Definitions.--In this section:
``(1) The term `Korean conflict' means the period beginning
on June 27, 1950, and ending on January 31, 1955.
``(2) The term `Cold War' means the period beginning on
September 2, 1945, and ending on August 21, 1991.
``(3) The term `Indochina war era' means the period
beginning on July 8, 1959, and ending on May 15, 1975.

``Sec. 1510. Applicability to Coast Guard

``(a) Designated Officer To Have Responsibility.--The
Secretary of Transportation shall designate an officer of the
Department of Transportation to have responsibility within
the Department of Transportation for matters relating to
missing persons who are members of the Coast Guard.
``(b) Procedures.--The Secretary of Transportation shall
prescribe procedures for the determination of the status of
persons described in section 1501(c) of this title who are
members of the Coast Guard and for the collection, analysis,
review, and update of information on such persons. To the
maximum extent practicable, the procedures prescribed under
this section shall be similar to the procedures prescribed by
the Secretary of Defense under section 1501(b) of this title.

``Sec. 1511. Return alive of person declared missing or dead

``(a) Pay and Allowances.--Any person (except for a person
subsequently determined to have been absent without leave or
a deserter) in a missing status or declared dead under
subchapter VII of chapter 55 of title 5 or chapter 10 of
title 37 or by a board appointed under this chapter who is
found alive and returned to the control of the United States
shall be paid for the full time of the absence of the person
while given that status or declared dead under the law and
regulations relating to the pay and allowances of persons
returning from a missing status.
``(b) Effect on Gratuities Paid as a Result of Status.--
Subsection (a) shall not be interpreted to invalidate or
otherwise affect the receipt by any person of a death
gratuity or other payment from the United States on behalf of
a person referred to in subsection (a) before the date of the
enactment of this chapter.

``Sec. 1512. Effect on State law

``(a) Nonpreemption of State Authority.--Nothing in this
chapter shall be construed to invalidate or limit the power
of any State court or administrative entity, or the power of
any court or administrative entity of any political
subdivision thereof, to find or declare a person dead for
purposes of such State or political subdivision.
``(b) State Defined.--In this section, the term `State'
includes the District of Columbia, the Commonwealth of Puerto
Rico, and any territory or possession of the United States.

``Sec. 1513. Definitions

``In this chapter:
``(1) The term `missing person' means--
``(A) a member of the Armed Forces on active duty who is in
a missing status; or
``(B) a civilian employee of the Department of Defense or
an employee of a contractor of the Department of Defense who
serves with or accompanies the Armed Forces in the field
under orders and who is in a missing status.
``(2) The term `missing status' means the status of a
missing person who is determined to be absent in a category
of any of the following:
``(A) Missing.
``(B) Missing in action.
``(C) Interned in a foreign country.
``(D) Captured.
``(E) Beleaguered.
``(F) Besieged.
``(G) Detained in a foreign country against that person's
will.
``(3) The term `accounted for', with respect to a person in
a missing status, means that--
``(A) the person is returned to United States control
alive;
``(B) the remains of the person are recovered and, if not
identifiable through visual means as those of the missing
person, are identified as those of the missing person by a
practitioner of an appropriate forensic science; or
``(C) credible evidence exists to support another
determination of the person's status.
``(4) The term `primary next of kin', in the case of a
missing person, means the individual authorized to direct
disposition of the remains of the person under section
1482(c) of this title.
``(5) The term `member of the immediate family', in the
case of a missing person, means the following:
``(A) The spouse of the person.
``(B) A natural child, adopted child, stepchild, or
illegitimate child (if acknowledged by the person or
parenthood has been established by a court of competent
jurisdiction) of the person, except that if such child has
not attained the age of 18 years, the term means a surviving
parent or legal guardian of such child.
``(C) A biological parent of the person, unless legal
custody of the person by the parent has been previously
terminated by reason of a court decree or otherwise under law
and not restored.
``(D) A brother or sister of the person, if such brother or
sister has attained the age of 18 years.
``(E) Any other blood relative or adoptive relative of the
person, if such relative was given sole legal custody of the
person by a court decree or otherwise under law before the
person attained the age of 18 years and such custody was not
subsequently terminated before that time.
``(6) The term `previously designated person', in the case
of a missing person, means an individual designated by the
person under section 655 of this title for purposes of this
chapter.
``(7) The term `classified information' means any
information the unauthorized disclosure of which (as
determined under applicable law and regulations) could
reasonably be expected to damage the national security.
``(8) The term `theater component commander' means, with
respect to any of the combatant commands, an officer of any
of the armed forces who (A) is commander of all forces of
that armed force assigned to that combatant command, and (B)
is directly subordinate to the commander of the combatant
command.''.
(2) The tables of chapters at the beginning of subtitle A,
and at the beginning of part II of subtitle A, of title 10,
United States Code, are amended by inserting after the item
relating to chapter 75 the following new item:

``76. Missing Persons.......................................1501''.....

(c) Conforming Amendments.--Chapter 10 of title 37, United
States Code, is amended as follows:
(1) Section 555 is amended--
(A) in subsection (a), by striking out ``When a member''
and inserting in lieu thereof ``Except as provided in
subsection (d), when a member''; and
(B) by adding at the end the following new subsection:
``(d) This section does not apply in a case to which
section 1502 of title 10 applies.''.
(2) Section 552 is amended--
(A) in subsection (a), by striking out ``for all
purposes,'' in the second sentence of the matter following
paragraph (2) and all that follows through the end of the
sentence and inserting in lieu thereof ``for all purposes.'';
(B) in subsection (b), by inserting ``or under chapter 76
of title 10'' before the period at the end; and
(C) in subsection (e), by inserting ``or under chapter 76
of title 10'' after ``section 555 of this title''.
(3) Section 553 is amended--
(A) in subsection (f), by striking out ``the date the
Secretary concerned receives evidence that'' and inserting in
lieu thereof ``the date on which, in a case covered by
section 555 of this title, the Secretary concerned receives
evidence, or, in a case covered by chapter 76 of title 10,
the Secretary concerned determines pursuant to that chapter,
that''; and
(B) in subsection (g), by inserting ``or under chapter 76
of title 10'' after ``section 555 of this title''.
(4) Section 556 is amended--
(A) in subsection (a), by inserting after paragraph (7) the
following:
``Paragraphs (1), (5), (6), and (7) only apply with respect
to a case to which section 555 of this title applies.'';
(B) in subsection (b), by inserting ``, in a case to which
section 555 of this title applies,'' after ``When the
Secretary concerned''; and
(C) in subsection (h)--
(i) in the first sentence, by striking out ``status'' and
inserting in lieu thereof ``pay''; and
(ii) in the second sentence, by inserting ``in a case to
which section 555 of this title applies'' after ``under this
section''.
(d) Designation of Persons Having Interest in Status of
Service Members.--(1) Chapter 37 of title 10, United States
Code, is amended by adding at the end the following new
section:

[[Page H401]]

``Sec. 655. Designation of persons having interest in status
of a missing member

``(a) The Secretary concerned shall, upon the enlistment or
appointment of a person in the armed forces, require that the
person specify in writing the person or persons, if any,
other than that person's primary next of kin or immediate
family, to whom information on the whereabouts and status of
the member shall be provided if such whereabouts and status
are investigated under chapter 76 of this title. The
Secretary shall periodically, and whenever the member is
deployed as part of a contingency operation or in other
circumstances specified by the Secretary, require that such
designation be reconfirmed, or modified, by the member.
``(b) The Secretary concerned shall, upon the request of a
member, permit the member to revise the person or persons
specified by the member under subsection (a) at any time. Any
such revision shall be in writing.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``655. Designation of persons having interest in status of a missing
member.''.

(e) Accounting for Civilian Employee and Contractors of the
United States.--(1) The Secretary of State shall carry out a
comprehensive study of the provisions of subchapter VII of
chapter 55 of title 5, United States Code (commonly referred
to as the ``Missing Persons Act of 1942'') (5 U.S.C. 5561 et
seq.) and any other law or regulation establishing procedures
for the accounting for of civilian employees of the United
States or contractors of the United States who serve with or
accompany the Armed Forces in the field. The purpose of the
study shall be to determine the means, if any, by which those
procedures may be improved.
(2) The Secretary of State shall carry out the study
required under paragraph (1) in consultation with the
Secretary of Defense, the Secretary of Transportation, the
Director of Central Intelligence, and the heads of such other
departments and agencies of the United States as the
President designates for that purpose.
(3) In carrying out the study, the Secretary of State shall
examine the procedures undertaken when a civilian employee
referred to in paragraph (1) becomes involuntarily absent as
a result of a hostile action, or under circumstances
suggesting that the involuntary absence is a result of a
hostile action, and whose status is undetermined or who is
unaccounted for, including procedures for--
(A) search and rescue for the employee;
(B) determining the status of the employee;
(C) reviewing and changing the status of the employee;
(D) determining the rights and benefits accorded to the
family of the employee; and
(E) maintaining and providing appropriate access to the
records of the employee and the investigation into the status
of the employee.
(4) Not later than one year after the date of the enactment
of this Act, the Secretary of State shall submit to the
Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives a report
on the study carried out by the Secretary under this
subsection. The report shall include the recommendations, if
any, of the Secretary for legislation to improve the
procedures covered by the study.

SEC. 570. ASSOCIATE DIRECTOR OF CENTRAL INTELLIGENCE FOR
MILITARY SUPPORT.

Section 102 of the National Security Act of 1947 (50 U.S.C.
403) is amended by adding at the end the following:
``(e) In the event that neither the Director nor Deputy
Director of Central Intelligence is a commissioned officer of
the Armed Forces, a commissioned officer of the Armed Forces
appointed to the position of Associate Director of Central
Intelligence for Military Support, while serving in such
position, shall not be counted against the numbers and
percentages of commissioned officers of the rank and grade of
such officer authorized for the armed force of which such
officer is a member.''.
Subtitle G--Support for Non-Department of Defense Activities

SEC. 571. REPEAL OF CERTAIN CIVIL-MILITARY PROGRAMS.

(a) Repeal of Civil-Military Cooperative Action Program.--
The following provisions of law are repealed:
(1) Section 410 of title 10, United States Code.
(2) Section 1081(a) of the National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 410
note).
(b) Repeal of Related Provision.--Section 1045 of the
National Defense Authorization Act for Fiscal Year 1993
(Public Law 102-484; 10 U.S.C. 410 note), relating to a pilot
outreach program to reduce demand for illegal drugs, is
repealed.
(c) Technical and Conforming Amendments.--Chapter 20 of
title 10, United States Code, is amended--
(1) by striking out the table of subchapters after the
chapter heading;
(2) by striking out the subchapter heading for subchapter
I; and
(3) by striking out the subchapter heading for subchapter
II and the table of sections following that subchapter
heading.

SEC. 572. TRAINING ACTIVITIES RESULTING IN INCIDENTAL SUPPORT
AND SERVICES FOR ELIGIBLE ORGANIZATIONS AND
ACTIVITIES OUTSIDE THE DEPARTMENT OF DEFENSE.

(a) In General.--(1) Chapter 101 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 2012. Support and services for eligible organizations
and activities outside Department of Defense

``(a) Authority To Provide Services and Support.--Under
regulations prescribed by the Secretary of Defense, the
Secretary of a military department may in accordance with
this section authorize units or individual members of the
armed forces under that Secretary's jurisdiction to provide
support and services to non-Department of Defense
organizations and activities specified in subsection (e), but
only if--
``(1) such assistance is authorized by a provision of law
(other than this section); or
``(2) the provision of such assistance is incidental to
military training.
``(b) Scope of Covered Activities Subject to Section.--This
section does not--
``(1) apply to the provision by the Secretary concerned,
under regulations prescribed by the Secretary of Defense, of
customary community relations and public affairs activities
conducted in accordance with Department of Defense policy; or
``(2) prohibit the Secretary concerned from encouraging
members of the armed forces under the Secretary's
jurisdiction to provide volunteer support for community
relations activities under regulations prescribed by the
Secretary of Defense.
``(c) Requirement for Specific Request.--Assistance under
subsection (a) may only be provided if--
``(1) the assistance is requested by a responsible official
of the organization to which the assistance is to be
provided; and
``(2) the assistance is not reasonably available from a
commercial entity or (if so available) the official
submitting the request for assistance certifies that the
commercial entity that would otherwise provide such services
has agreed to the provision of such services by the armed
forces.
``(d) Relationship to Military Training.--(1) Assistance
under subsection (a) may only be provided if the following
requirements are met:
``(A) The provision of such assistance--
``(i) in the case of assistance by a unit, will accomplish
valid unit training requirements; and
``(ii) in the case of assistance by an individual member,
will involve tasks directly related to the specific military
occupational specialty of the member.
``(B) The provision of such assistance will not adversely
affect the quality of training or otherwise interfere with
the ability of a member or unit of the armed forces to
perform the military functions of the member or unit.
``(C) The provision of such assistance will not result in a
significant increase in the cost of the training.
``(2) Subparagraph (A)(i) of paragraph (1) does not apply
in a case in which the assistance to be provided consists
primarily of military manpower and the total amount of such
assistance in the case of a particular project does not
exceed 100 man-hours.
``(e) Eligible Entities.--The following organizations and
activities are eligible for assistance under this section:
``(1) Any Federal, regional, State, or local governmental
entity.
``(2) Youth and charitable organizations specified in
section 508 of title 32.
``(3) Any other entity as may be approved by the Secretary
of Defense on a case-by-case basis.
``(f) Regulations.--The Secretary of Defense shall
prescribe regulations governing the provision of assistance
under this section. The regulations shall include the
following:
``(1) Rules governing the types of assistance that may be
provided.
``(2) Procedures governing the delivery of assistance that
ensure, to the maximum extent practicable, that such
assistance is provided in conjunction with, rather than
separate from, civilian efforts.
``(3) Procedures for appropriate coordination with civilian
officials to ensure that the assistance--
``(A) meets a valid need; and
``(B) does not duplicate other available public services.
``(4) Procedures to ensure that Department of Defense
resources are not applied exclusively to the program
receiving the assistance.
``(g) Advisory Councils.--(1) The Secretary of Defense
shall encourage the establishment of advisory councils at
regional, State, and local levels, as appropriate, in order
to obtain recommendations and guidance concerning assistance
under this section from persons who are knowledgeable about
regional, State, and local conditions and needs.
``(2) The advisory councils should include officials from
relevant military organizations, representatives of
appropriate local, State, and Federal agencies,
representatives of civic and social service organizations,
business representatives, and labor representatives.
``(3) The Federal Advisory Committee Act (5 U.S.C. App.)
shall not apply to such councils.
``(h) Construction of Provision.--Nothing in this section
shall be construed as authorizing--
``(1) the use of the armed forces for civilian law
enforcement purposes or for response to natural or manmade
disasters; or

[[Page H402]]

``(2) the use of Department of Defense personnel or
resources for any program, project, or activity that is
prohibited by law.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2012. Support and services for eligible organizations and activities
outside Department of Defense.''.

SEC. 573. NATIONAL GUARD CIVILIAN YOUTH OPPORTUNITIES PILOT
PROGRAM.

(a) Termination.--The authority under subsection (a) of
section 1091 of the National Defense Authorization Act for
Fiscal Year 1993 (Public Law 102-484; 32 U.S.C. 501 note) to
carry out a pilot program under that section is hereby
continued through the end of the 18-month period beginning on
the date of the enactment of this Act and such authority
shall terminate as of the end of that period.
(b) Limitation on Number of Programs.--During the period
beginning on the date of the enactment of this Act and ending
on the termination of the pilot program under subsection (a),
the number of programs carried out under subsection (d) of
that section as part of the pilot program may not exceed the
number of such programs as of September 30, 1995.

SEC. 574. TERMINATION OF FUNDING FOR OFFICE OF CIVIL-MILITARY
PROGRAMS IN OFFICE OF THE SECRETARY OF DEFENSE.

No funds may be obligated or expended after the date of the
enactment of this Act (1) for the office that as of the date
of the enactment of this Act is designated, within the Office
of the Assistant Secretary of Defense for Reserve Affairs, as
the Office of Civil-Military Programs, or (2) for any other
entity within the Office of the Secretary of Defense that has
an exclusive or principal mission of providing centralized
direction for activities under section 2012 of title 10,
United States Code, as added by section 572.
TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS
Subtitle A--Pay and Allowances

SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1996.

(a) Rescission of Prior Section 1009 Adjustment.--The
adjustment made as of January 1, 1996, pursuant to section 4
of Executive order No. 12984 (issued December 28, 1995), in
elements of compensation of members of the uniformed services
pursuant to section 1009 of title 37, United States Code, is
hereby rescinded.
(b) Increase in Basic Pay and BAS.--The rates of basic pay
and basic allowance for subsistence of members of the
uniformed services, as in effect on December 31, 1995, are
hereby increased by 2.4 percent.
(c) Increase in BAQ.--The rates of basic allowance for
quarters of members of the uniformed services, as in effect
on December 31, 1995, are hereby increased by 5.2 percent.
(d) Effective Date.--This section shall take effect as of
January 1, 1996.

SEC. 602. LIMITATION ON BASIC ALLOWANCE FOR SUBSISTENCE FOR
MEMBERS RESIDING WITHOUT DEPENDENTS IN
GOVERNMENT QUARTERS.

(a) Percentage Limitation.--Subsection (b) of section 402
of title 37, United States Code, is amended by adding after
the last sentence the following new paragraph:
``(4) In the case of enlisted members of the Army, Navy,
Air Force, or Marine Corps who, when present at their
permanent duty station, reside without dependents in
Government quarters, the Secretary concerned may not provide
a basic allowance for subsistence to more than 12 percent of
such members under the jurisdiction of the Secretary
concerned. The Secretary concerned may exceed such percentage
if the Secretary determines that compliance would increase
costs to the Government, would impose financial hardships on
members otherwise entitled to a basic allowance for
subsistence, or would reduce the quality of life for such
members. This paragraph shall not apply to members described
in the first sentence when the members are not residing at
their permanent duty station. The Secretary concerned shall
achieve the percentage limitation specified in this paragraph
as soon as possible after the date of the enactment of this
paragraph, but in no case later than September 30, 1996.''.
(b) Stylistic Amendments.--Such subsection is further
amended--
(1) by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C);
(2) by inserting ``(1)'' after ``(b)'';
(3) by designating the text composed of the second, third,
and fourth sentences as paragraph (2); and
(4) by designating the text composed of the fifth and sixth
sentences as paragraph (3).
(c) Conforming Amendments.--(1) Subsection (e) of such
section is amended--
(A) in paragraph (1), by striking out ``the third sentence
of subsection (b)'' and inserting in lieu thereof
``subsection (b)(2)''; and
(B) in paragraph (2), by striking out ``subsection (b)''
and inserting in lieu thereof ``subsection (b)(2)''.
(2) Section 1012 of title 37, United States Code, is
amended by striking out ``the last sentence of section
402(b)'' and inserting in lieu thereof ``section 402(b)(3)''.
(d) Report Required.--Not later than March 31, 1996, the
Secretary of Defense shall submit to Congress a report
identifying, for the Army, Navy, Air Force, and Marine
Corps--
(1) the number of members who reside without dependents in
Government quarters at their permanent duty stations and
receive a basic allowance for subsistence under section 402
of title 37, United States Code;
(2) such number as a percentage of the total number of
members who reside without dependents in Government quarters;
(3) a recommended maximum percentage of the members
residing without dependents in Government quarters at their
permanent duty station who should receive a basic allowance
for subsistence; and
(4) the reasons such maximum percentage is recommended.

SEC. 603. ELECTION OF BASIC ALLOWANCE FOR QUARTERS INSTEAD OF
ASSIGNMENT TO INADEQUATE QUARTERS.

(a) Election Authorized.--Section 403(b) of title 37,
United States Code, is amended--
(1) by inserting ``(1)'' after ``(b)'';
(2) by designating the second sentence as paragraph (2)
and, as so designated, by striking out ``However, subject''
and inserting in lieu thereof ``Subject''; and
(3) by adding at the end the following new paragraph:
``(3) A member without dependents who is in pay grade E-6
and who is assigned to quarters of the United States that do
not meet the minimum adequacy standards established by the
Department of Defense for members in such pay grade, or to a
housing facility under the jurisdiction of a uniformed
service that does not meet such standards, may elect not to
occupy such quarters or facility and instead to receive the
basic allowance for quarters prescribed for the member's pay
grade by this section.''.
(b) Effective Date.--The amendments made by this section
shall take effect on July 1, 1996.

SEC. 604. PAYMENT OF BASIC ALLOWANCE FOR QUARTERS TO MEMBERS
IN PAY GRADE E-6 WHO ARE ASSIGNED TO SEA DUTY.

(a) Payment Authorized.--Section 403(c)(2) of title 37,
United States Code, is amended--
(1) in the first sentence, by striking out ``E-7'' and
inserting in lieu thereof ``E-6''; and
(2) in the second sentence, by striking out ``E-6'' and
inserting in lieu thereof ``E-5''.
(b) Effective Date.--The amendments made by this section
shall take effect on July 1, 1996.

SEC. 605. LIMITATION ON REDUCTION OF VARIABLE HOUSING
ALLOWANCE FOR CERTAIN MEMBERS.

(a) Limitation on Reduction in VHA.--(1) Subsection (c)(3)
of section 403a of title 37, United States Code, is amended
by adding at the end the following new sentence: ``However,
so long as a member of a uniformed service retains
uninterrupted eligibility to receive a variable housing
allowance within an area and the member's certified housing
costs are not reduced (as indicated by certifications
provided by the member under subsection (b)(4)), the monthly
amount of a variable housing allowance under this section for
the member within that area may not be reduced as a result of
systematic adjustments required by changes in housing costs
within that area.''.
(2) The amendment made by paragraph (1) shall apply for
fiscal years after fiscal year 1995.
(b) Effect on Total Amount Available for VHA.--Subsection
(d)(3) of such section is amended by inserting after the
first sentence the following new sentence: ``In addition, the
total amount determined under paragraph (1) shall be adjusted
to ensure that sufficient amounts are available to allow
payment of any additional amounts of variable housing
allowance necessary as a result of the requirements of the
second sentence of subsection (c)(3).''.
(c) Report on Implementation.--Not later than June 1, 1996,
the Secretary of Defense shall submit to Congress a report
describing the procedures to be used to implement the
amendments made by this section and the costs of such
amendments.
(d) Resolving VHA Inadequacies in High Housing Cost
Areas.--If the Secretary of Defense determines that, despite
the amendments made by this section, inadequacies exist in
the provision of variable housing allowances under section
403a of title 37, United States Code, the Secretary shall
submit to Congress a report containing a legislative proposal
to address the inadequacies. The Secretary shall make the
determination required by this subsection and submit the
report, if necessary, not later than May 31, 1996.

SEC. 606. CLARIFICATION OF LIMITATION ON ELIGIBILITY FOR
FAMILY SEPARATION ALLOWANCE.

Section 427(b)(4) of title 37, United States Code, is
amended in the first sentence by inserting ``paragraph (1)(A)
of'' after ``not entitled to an allowance under''.
Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. EXTENSION OF CERTAIN BONUSES FOR RESERVE FORCES.

(a) Selected Reserve Reenlistment Bonus.--Section 308b(f)
of title 37, United States Code, is amended by striking out
``September 30, 1996'' and inserting in lieu thereof
``September 30, 1997''.
(b) Selected Reserve Enlistment Bonus.--Section 308c(e) of
title 37, United States Code, is amended by striking out
``September 30, 1996'' and inserting in lieu thereof
``September 30, 1997''.

[[Page H403]]

(c) Selected Reserve Affiliation Bonus.--Section 308e(e) of
title 37, United States Code, is amended by striking out
``September 30, 1996'' and inserting in lieu thereof
``September 30, 1997''.
(d) Ready Reserve Enlistment and Reenlistment Bonus.--
Section 308h(g) of title 37, United States Code, is amended
by striking out ``September 30, 1996'' and inserting in lieu
thereof ``September 30, 1997''.
(e) Prior Service Enlistment Bonus.--Section 308i(i) of
title 37, United States Code, is amended by striking out
``September 30, 1996'' and inserting in lieu thereof
``September 30, 1997''.

SEC. 612. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY FOR
NURSE OFFICER CANDIDATES, REGISTERED NURSES,
AND NURSE ANESTHETISTS.

(a) Nurse Officer Candidate Accession Program.--Section
2130a(a)(1) of title 10, United States Code, is amended by
striking out ``September 30, 1996'' and inserting in lieu
thereof ``September 30, 1997''.
(b) Accession Bonus for Registered Nurses.--Section
302d(a)(1) of title 37, United States Code, is amended by
striking out ``September 30, 1996'' and inserting in lieu
thereof ``September 30, 1997''.
(c) Incentive Special Pay for Nurse Anesthetists.--Section
302e(a)(1) of title 37, United States Code, is amended by
striking out ``September 30, 1996'' and inserting in lieu
thereof ``September 30, 1997''.

SEC. 613. EXTENSION OF AUTHORITY RELATING TO PAYMENT OF OTHER
BONUSES AND SPECIAL PAYS.

(a) Aviation Officer Retention Bonus.--Section 301b(a) of
title 37, United States Code, is amended by striking out
``September 30, 1995,'' and inserting in lieu thereof
``September 30, 1997''.
(b) Reenlistment Bonus for Active Members.--Section 308(g)
of title 37, United States Code, is amended by striking out
``September 30, 1996'' and inserting in lieu thereof
``September 30, 1997''.
(c) Enlistment Bonuses for Critical Skills.--Sections
308a(c) and 308f(c) of title 37, United States Code, are
each
amended by striking out ``September 30, 1996'' and inserting
in lieu thereof ``September 30, 1997''.
(d) Special Pay for Enlisted Members of the Selected
Reserve Assigned to Certain High Priority Units.--Section
308d(c) of title 37, United States Code, is amended by
striking out ``September 30, 1996'' and inserting in lieu
thereof ``September 30, 1997''.
(e) Special Pay for Nuclear Qualified Officers Extending
Period of Active Service.--Section 312(e) of title 37, United
States Code, is amended by striking out ``September 30,
1996'' and inserting in lieu thereof ``September 30, 1997''.
(f) Nuclear Career Accession Bonus.--Section 312b(c) of
title 37, United States Code, is amended by striking out
``September 30, 1996'' and inserting in lieu thereof
``September 30, 1997''.
(g) Nuclear Career Annual Incentive Bonus.--Section 312c(d)
of title 37, United States Code, is amended by striking out
``October 1, 1996'' and inserting in lieu thereof ``October
1, 1997''.
(h) Repayment of Education Loans for Certain Health
Professionals Who Serve in the Selected Reserve.--Section
16302(d) of title 10, United States Code, is amended by
striking out ``October 1, 1996'' and inserting in lieu
thereof ``October 1, 1997''.
(i) Coverage of Period of Lapsed Agreement Authority.--(1)
In the case of an officer described in section 301b(b) of
title 37, United States Code, who executes an agreement
described in paragraph (2) during the 90-day period beginning
on the date of the enactment of this Act, the Secretary
concerned may treat the agreement for purposes of the
retention bonus authorized under the agreement as having been
executed and accepted on the first date on which the officer
would have qualified for such an agreement had the amendment
made by subsection (a) taken effect on October 1, 1995.
(2) An agreement referred to in this subsection is a
service agreement with the Secretary concerned that is a
condition for the payment of a retention bonus under section
301b of title 37, United States Code.
(3) For purposes of this subsection, the term ``Secretary
concerned'' has the meaning given that term in section 101(5)
of title 37, United States Code.

SEC. 614. CODIFICATION AND EXTENSION OF SPECIAL PAY FOR
CRITICALLY SHORT WARTIME HEALTH SPECIALISTS IN
THE SELECTED RESERVES.

(a) Special Pay Authorized.--(1) Chapter 5 of title 37,
United States Code, is amended by inserting after section
302f the following new section:

``Sec. 302g. Special pay: Selected Reserve health care
professionals in critically short wartime specialties

``(a) Special Pay Authorized.--An officer of a reserve
component of the armed forces described in subsection (b) who
executes a written agreement under which the officer agrees
to serve in the Selected Reserve of an armed force for a
period of not less than one year nor more than three years,
beginning on the date the officer accepts the award of
special pay under this section, may be paid special pay at an
annual rate not to exceed $10,000.
``(b) Eligible Officers.--An officer referred to in
subsection (a) is an officer in a health care profession who
is qualified in a specialty designated by regulations as a
critically short wartime specialty.
``(c) Time for Payment.--Special pay under this section
shall be paid annually at the beginning of each twelve-month
period for which the officer has agreed to serve.
``(d) Refund Requirement.--An officer who voluntarily
terminates service in the Selected Reserve of an armed force
before the end of the period for which a payment was made to
such officer under this section shall refund to the United
States the full amount of the payment made for the period on
which the payment was based.
``(e) Inapplicability of Discharge in Bankruptcy.--A
discharge in bankruptcy under title 11 that is entered less
than five years after the termination of an agreement under
this section does not discharge the person receiving special
pay under the agreement from the debt arising under the
agreement.
``(f) Termination of Agreement Authority.--No agreement
under this section may be entered into after September 30,
1997.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
302f the following new item:

``302g. Special pay: Selected Reserve health care professionals in
critically short wartime specialties.''.

(b) Conforming Amendment.--Section 303a of title 37, United
States Code, is amended by striking out ``302, 302a, 302b,
302c, 302d, 302e,'' each place it appears and inserting in
lieu thereof ``302 through 302g,''.
(c) Conforming Repeal.--(1) Section 613 of the National
Defense Authorization Act, Fiscal Year 1989 (Public Law 100-
456; 37 U.S.C. 302 note) is repealed.
(2) The provisions of section 613 of the National Defense
Authorization Act, Fiscal Year 1989, as in effect on the day
before the date of the enactment of this Act, shall continue
to apply to agreements entered into under such section before
such date.

SEC. 615. HAZARDOUS DUTY INCENTIVE PAY FOR WARRANT OFFICERS
AND ENLISTED MEMBERS SERVING AS AIR WEAPONS
CONTROLLERS.

(a) Inclusion of Additional Members.--Subsection (a)(11) of
section 301 of title 37, United States Code, is amended by
striking out ``an officer (other than a warrant officer)''
and inserting in lieu thereof ``a member''.
(b) Calculation of Hazardous Duty Incentive Pay.--The table
in subparagraph (A) of subsection (c)(2) of such section is
amended to read as follows:

----------------------------------------------------------------------------------------------------------------
Years of service as an air weapons controller
-------------------------------------------------------------------------------
``Pay grade 2 or
less Over 2 Over 3 Over 4 Over 6 Over 8 Over 10
----------------------------------------------------------------------------------------------------------------
``O-7 and above................. $200 $200 $200 $200 $200 $200 $200
``O-6........................... 225 250 300 325 350 350 350
``O-5........................... 200 250 300 325 350 350 350
``O-4........................... 175 225 275 300 350 350 350
``O-3........................... 125 156 188 206 350 350 350
``O-2........................... 125 156 188 206 250 300 300
``O-1........................... 125 156 188 206 250 250 250
``W-4........................... 200 225 275 300 325 325 325
``W-3........................... 175 225 275 300 325 325 325
``W-2........................... 150 200 250 275 325 325 325
``W-1........................... 100 125 150 175 325 325 325
``E-9........................... 200 225 250 275 300 300 300
``E-8........................... 200 225 250 275 300 300 300
``E-7........................... 175 200 225 250 275 275 275
``E-6........................... 156 175 200 225 250 250 250
``E-5........................... 125 156 175 188 200 200 200
``E-4 and below................. 125 156 175 188 200 200 200
-------------------------------------------------------------------------------
Over 12 Over 14 Over 16 Over 18 Over 20 Over 22 Over 24 Over 25
-------------------------------------------------------------------------------
``O-7 and above................. $200 $200 $200 $200 $200 $200 $200 $110

[[Page H404]]

``O-6........................... 350 350 350 350 300 250 250 225
``O-5........................... 350 350 350 350 300 250 250 225
``O-4........................... 350 350 350 350 300 250 250 225
``O-3........................... 350 350 350 300 275 250 225 200
``O-2........................... 300 300 300 275 245 210 200 180
``O-1........................... 250 250 250 245 210 200 180 150
``W-4........................... 325 325 325 325 276 250 225 200
``W-3........................... 325 325 325 325 325 250 225 200
``W-2........................... 325 325 325 325 275 250 225 200
``W-1........................... 325 325 325 325 275 250 225 200
``E-9........................... 300 300 300 300 275 230 200 200
``E-8........................... 300 300 300 300 265 230 200 200
``E-7........................... 300 300 300 300 265 230 200 200
``E-6........................... 300 300 300 300 265 230 200 200
``E-5........................... 250 250 250 250 225 200 175 150
``E-4 and below................. 200 200 200 200 175 150 125 125''.
----------------------------------------------------------------------------------------------------------------

(c) Conforming Amendments.--Subsection (c)(2) of such
section is further amended--
(1) by striking out ``an officer'' each place it appears
and inserting in lieu thereof ``a member''; and
(2) by striking out ``the officer'' each place it appears
and inserting in lieu thereof ``the member''.

SEC. 616. AVIATION CAREER INCENTIVE PAY.

(a) Years of Operational Flying Duties Required.--Paragraph
(4) of section 301a(a) of title 37, United States Code, is
amended in the first sentence by striking out ``9'' and
inserting in lieu thereof ``8''.
(b) Exercise of Waiver Authority.--Paragraph (5) of such
section is amended by inserting after the second sentence the
following new sentence: ``The Secretary concerned may not
delegate the authority in the preceding sentence to permit
the payment of incentive pay under this subsection.''.

SEC. 617. CLARIFICATION OF AUTHORITY TO PROVIDE SPECIAL PAY
FOR NURSES.

Section 302c(d)(1) of title 37, United States Code, is
amended--
(1) by striking out ``or'' after ``Air Force,''; and
(2) by inserting before the semicolon the following: ``, an
officer of the Nurse Corps of the Army or Navy, or an officer
of the Air Force designated as a nurse''.

SEC. 618. CONTINUOUS ENTITLEMENT TO CAREER SEA PAY FOR CREW
MEMBERS OF SHIPS DESIGNATED AS TENDERS.

Subparagraph (A) of section 305a(d)(1) of title 37, United
States Code, is amended to read as follows:
``(A) while permanently or temporarily assigned to a ship,
ship-based staff, or ship-based aviation unit and--
``(i) while serving on a ship the primary mission of which
is accomplished while under way;
``(ii) while serving as a member of the off-crew of a two-
crewed submarine; or
``(iii) while serving as a member of a tender-class ship
(with the hull classification of submarine or destroyer);
or''.

SEC. 619. INCREASE IN MAXIMUM RATE OF SPECIAL DUTY ASSIGNMENT
PAY FOR ENLISTED MEMBERS SERVING AS RECRUITERS.

(a) Special Maximum Rate for Recruiters.--Section 307(a) of
title 37, United States Code, is amended by adding at the end
the following new sentence: ``In the case of a member who is
serving as a military recruiter and is eligible for special
duty assignment pay under this subsection on account of such
duty, the Secretary concerned may increase the monthly rate
of special duty assignment pay for the member to not more
than $375.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on January 1, 1996.
Subtitle C--Travel and Transportation Allowances

SEC. 621. REPEAL OF REQUIREMENT REGARDING CALCULATION OF
ALLOWANCES ON BASIS OF MILEAGE TABLES.

Section 404(d)(1)(A) of title 37, United States Code, is
amended by striking out ``, based on distances established
over the shortest usually traveled route, under mileage
tables prepared under the direction of the Secretary of
Defense''.

SEC. 622. DEPARTURE ALLOWANCES.

(a) Eligibility When Evacuation Authorized But Not
Ordered.--Section 405a(a) of title 37, United States Code, is
amended by striking out ``ordered'' each place it appears and
inserting in lieu thereof ``authorized or ordered''.
(b) Application of Amendment.--The amendment made by
subsection (a) shall apply with respect to persons authorized
or ordered to depart as described in section 405a(a) of title
37, United States Code, on or after October 1, 1995.

SEC. 623. TRANSPORTATION OF NONDEPENDENT CHILD FROM MEMBER'S
STATION OVERSEAS AFTER LOSS OF DEPENDENT STATUS
WHILE OVERSEAS.

Section 406(h)(1) of title 37, United States Code, is
amended in the last sentence--
(1) by striking out ``who became 21 years of age'' and
inserting in lieu thereof ``who, by reason of age or
graduation from (or cessation of enrollment in) an
institution of higher education, would otherwise cease to be
a dependent of the member''; and
(2) by inserting ``still'' after ``shall''.

SEC. 624. AUTHORIZATION OF DISLOCATION ALLOWANCE FOR MOVES IN
CONNECTION WITH BASE REALIGNMENTS AND CLOSURES.

(a) Dislocation Allowance Authorized.--Subsection (a) of
section 407 of title 37, United States Code, is amended--
(1) by striking out ``or'' at the end of paragraph (3);
(2) by striking out the period at the end of paragraph
(4)(B) and inserting in lieu thereof ``; or''; and
(3) by inserting after paragraph (4)(B) the following new
paragraph:
``(5) the member is ordered to move in connection with the
closure or realignment of a military installation and, as a
result, the member's dependents actually move or, in the case
of a member without dependents, the member actually moves.''.
(b) Conforming Amendments.--(1) The last sentence of such
subsection is amended--
(A) by striking out ``clause (3) or (4)(B)'' and inserting
in lieu thereof ``paragraph (3) or (4)(B)''; and
(B) by striking out ``clause (1)'' and inserting in lieu
thereof ``paragraph (1) or (5)''.
(2) Subsection (b) of such section is amended--
(A) by striking out ``subsection (a)(3) or (a)(4)(B)'' in
the first sentence and inserting in lieu thereof ``paragraph
(3) or (4)(B) of subsection (a)''; and
(B) by striking out ``subsection (a)(1)'' in the second
sentence and inserting in lieu thereof ``paragraph (1) or (5)
of subsection (a)''.
Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING
ADJUSTMENTS FOR FISCAL YEARS 1996, 1997, AND
1998.

(a) Adjustment of Effective Dates.--Subparagraph (B) of
section 1401a(b)(2) of title 10, United States Code, is
amended to read as follows:
``(B) Special rules for fiscal years 1996 and 1998.--
``(i) Fiscal year 1996.--In the case of the increase in
retired pay that, pursuant to paragraph (1), becomes
effective on December 1, 1995, the initial month for which
such increase is payable as part of such retired pay shall
(notwithstanding such December 1 effective date) be March
1996.
``(ii) Fiscal year 1998.--In the case of the increase in
retired pay that, pursuant to paragraph (1), becomes
effective on December 1, 1997, the initial month for which
such increase is payable as part of such retired pay shall
(notwithstanding such December 1 effective date) be September
1998.''.
(b) Contingent Alternative Date for Fiscal Year 1998.--(1)
If a civil service retiree cola that becomes effective during
fiscal year 1998 becomes effective on a date other than the
date on which a military retiree cola during that fiscal year
is specified to become effective under subparagraph (B) of
section 1401a(b)(2) of title 10, United States Code, as
amended by subsection (a), then the increase in military
retired and retainer pay shall become payable as part of such
retired and retainer pay effective on the same date on which
such civil service retiree cola becomes effective
(notwithstanding the date otherwise specified in such
subparagraph (B)).
(2) Paragraph (1) does not apply with respect to the
retired pay of a person retired under chapter 61 of title 10,
United States Code.
(3) For purposes of this subsection:
(A) The term ``civil service retiree cola'' means an
increase in annuities under the Civil Service Retirement
System either under section 8340(b) of title 5, United States
Code, or pursuant to a law providing a general increase in
such annuities.
(B) The term ``military retiree cola'' means an adjustment
in retired and retainer pay pursuant to section 1401a(b) of
title 10, United States Code.
(c) Repeal of Prior Conditional Enactment.--Section
8114A(b) of Public Law 103-335 (108 Stat. 2648) is repealed.

[[Page H405]]

SEC. 632. DENIAL OF NON-REGULAR SERVICE RETIRED PAY FOR
RESERVES RECEIVING CERTAIN COURT-MARTIAL
SENTENCES.

(a) In General.--(1) Chapter 1223 of title 10, United
States Code, is amended by adding at the end the following
new section:

``Sec. 12740. Eligibility: denial upon certain punitive
discharges or dismissals

``A person who--
``(1) is convicted of an offense under the Uniform Code of
Military Justice (chapter 47 of this title) and whose
sentence includes death; or
``(2) is separated pursuant to sentence of a court-martial
with a dishonorable discharge, a bad conduct discharge, or
(in the case of an officer) a dismissal,
is not eligible for retired pay under this chapter.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``12740. Eligibility: denial upon certain punitive discharges or
dismissals.''.

(b) Effective Date.--Section 12740 of title 10, United
States Code, as added by subsection (a), shall apply with
respect to court-martial sentences adjudged after the date of
the enactment of this Act.

SEC. 633. REPORT ON PAYMENT OF ANNUITIES FOR CERTAIN MILITARY
SURVIVING SPOUSES.

(a) Study Required.--(1) The Secretary of Defense shall
conduct a study to determine the number of potential
beneficiaries there would be if Congress were to enact
authority for the Secretary of the military department
concerned to pay an annuity to the qualified surviving spouse
of each member of the Armed Forces who--
(A) died before March 21, 1974, and was entitled to retired
or retainer pay on the date of death; or
(B) was a member of a reserve component who died during the
period beginning on September 21, 1972, and ending on October
1, 1978, and at the time of death would have been entitled to
retired pay under chapter 67 of title 10, United States Code,
but for the fact that he was under 60 years of age.
(2) A qualified surviving spouse for purposes of paragraph
(1) is a surviving spouse who has not remarried and who is
not eligible for an annuity under section 4 of Public Law 92-
425 (10 U.S.C. 1448 note).
(b) Required Determinations.--As part of the study under
subsection (a), the Secretary shall determine the following:
(1) The number of unremarried surviving spouses of deceased
members and deceased former members of the Armed Forces
referred to in subparagraph (A) of subsection (a)(1) who
would be eligible for an annuity under authority described in
such subsection.
(2) The number of unremarried surviving spouses of deceased
members and deceased former members of reserve components
referred to in subparagraph (B) of subsection (a)(1) who
would be eligible for an annuity under authority described in
such subsection.
(3) The number of persons in each group of unremarried
former spouses described in paragraphs (1) and (2) who are
receiving a widow's insurance benefit or a widower's
insurance benefit under title II of the Social Security Act
on the basis of employment of a deceased member or deceased
former member referred to in subsection (a)(1).
(c) Report.--Not later than March 1, 1996, the Secretary of
Defense shall submit to the Committee on Armed Services of
the Senate and the Committee on National Security of the
House of Representatives a report on the results of the study
under this section. The Secretary shall include in the report
a recommendation on the amount of the annuity that should be
authorized to be paid under any authority described in
subsection (a)(1), together with a recommendation on whether
the annuity should be adjusted annually to offset increases
in the cost of living.

SEC. 634. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES
TO WORLD WAR II VETERANS WHO SERVED AS
GUERRILLA FIGHTERS IN THE PHILIPPINES.

(a) In General.--The Secretary of the military department
concerned shall pay, upon request, to an individual described
in subsection (b) the amount determined with respect to that
individual under subsection (c).
(b) Covered Individuals.--A payment under subsection (a)
shall be made to any individual who as a member of the Armed
Forces during World War II--
(1) was captured on the Island of Bataan in the territory
of the Philippines by Japanese forces;
(2) participated in the Bataan Death March;
(3) escaped from captivity; and
(4) served as a guerrilla fighter in the Philippines during
the period from January 1942 through February 1945.
(c) Amount To Be Paid.--The amount of a payment under
subsection (a) shall be the amount of quarters and
subsistence allowance which accrued to an individual
described in subsection (b) during the period specified in
paragraph (4) of subsection (b) and which was not paid to
that individual. The Secretary shall apply interest
compounded at the three-month Treasury bill rate.
(d) Payment to Survivors.--In the case of any individual
described in subsection (b) who is deceased, payment under
this section with respect to that individual shall be made to
that individual's nearest surviving relative, as determined
by the Secretary concerned.

SEC. 635. AUTHORITY FOR RELIEF FROM PREVIOUS OVERPAYMENTS
UNDER MINIMUM INCOME WIDOWS PROGRAM.

(a) Authority.--The Secretary of Defense may waive recovery
by the United States of any overpayment by the United States
described in subsection (b). In the case of any such waiver,
any debt to the United States arising from such overpayment
is forgiven.
(b) Covered Overpayments.--Subsection (a) applies in the
case of an overpayment by the United States that--
(1) was made before the date of the enactment of this Act
under section 4 of Public Law 92-425 (10 U.S.C. 1448 note);
and
(2) is attributable to failure by the Department of Defense
to apply the eligibility provisions of subsection (a) of such
section in the case of the person to whom the overpayment was
made.

SEC. 636. TRANSITIONAL COMPENSATION FOR DEPENDENTS OF MEMBERS
OF THE ARMED FORCES SEPARATED FOR DEPENDENT
ABUSE.

(a) Coverage of Program.--Subsection (a) of section 1059 of
title 10, United States Code, is amended by adding at the end
the following: ``Upon establishment of such a program, the
program shall apply in the case of each such member described
in subsection (b) who is under the jurisdiction of the
Secretary establishing the program.''.
(b) Clarification of Payment to Dependents of Members Not
Discharged.--Subsection (d) of such section is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking out ``any case of a separation from active
duty as described in subsection (b)'' and inserting in lieu
thereof ``the case of any individual described in subsection
(b)''; and
(B) by striking ``former member'' and inserting in lieu
thereof ``individual'';
(2) in paragraph (1)--
(A) by striking out ``former member'' and inserting in lieu
thereof ``individual''; and
(B) by striking out ``member'' and inserting in lieu
thereof ``individual'';
(3) in paragraph (2), by striking out ``former member''
both places it appears and inserting in lieu thereof
``individual described in subsection (b)'';
(4) in paragraph (3), by striking out ``former member'' and
inserting in lieu thereof ``individual described in
subsection (b)''; and
(5) in paragraph (4), by striking out ``member'' both
places it appears and inserting in lieu thereof ``individual
described in subsection (b)''.
(c) Effective Date.--Section 554(b) of the National Defense
Authorization Act for Fiscal Year 1994 (10 U.S.C. 1059 note)
is amended--
(1) in paragraph (1), by striking out ``on or after the
date of the enactment of this Act'' and inserting in lieu
thereof ``after November 29, 1993''; and
(2) by striking out paragraph (2) and inserting in lieu
thereof the following:
``(2) Payments of transitional compensation under that
section in the case of any person eligible to receive
payments under that section shall be made for each month
after November 1993 for which that person may be paid
transitional compensation in accordance with that section.''.
Subtitle E--Other Matters

SEC. 641. PAYMENT TO SURVIVORS OF DECEASED MEMBERS FOR ALL
LEAVE ACCRUED.

(a) Inapplicability of 60-Day Limitation.--Section 501(d)
of title 37, United States Code, is amended--
(1) in paragraph (1), by striking out the third sentence;
and
(2) by striking out paragraph (2) and inserting in lieu
thereof the following new paragraph:
``(2) The limitations in the second sentence of subsection
(b)(3), subsection (f), and the second sentence of subsection
(g) shall not apply with respect to a payment made under this
subsection.''.
(b) Conforming Amendment.--Section 501(f) of such title is
amended by striking out ``, (d),'' in the first sentence.

SEC. 642. REPEAL OF REPORTING REQUIREMENTS REGARDING
COMPENSATION MATTERS.

(a) Report on Travel and Transportation Allowances for
Dependents.--(1) Section 406 of title 37, United States Code,
is amended--
(A) by striking out subsection (i); and
(B) by redesignating subsections (j), (k), (l), (m), and
(n) as subsections (i), (j), (k), (l), and (m), respectively.
(2) Section 2634(d) of title 10, United States Code, is
amended by striking out ``section 406(l) of title 37'' and
inserting in lieu thereof ``section 406(k) of title 37''.
(b) Annual Review of Pay and Allowances.--Section 1008(a)
of title 37, United States Code, is amended by striking out
the second sentence.
(c) Report on Quadrennial Review of Adjustments in
Compensation.--Section 1009(f) of such title is amended by
striking out ``of this title,'' and all that follows through
the period at the end and inserting in lieu thereof ``of this
title.''.

SEC. 643. RECOUPMENT OF ADMINISTRATIVE EXPENSES IN
GARNISHMENT ACTIONS.

(a) In General.--Subsection (j) of section 5520a of title
5, United States Code, is amended by striking out paragraph
(2) and inserting in lieu thereof the following new
paragraph:

[[Page H406]]

``(2) Such regulations shall provide that an agency's
administrative costs incurred in executing legal process to
which the agency is subject under this section shall be
deducted from the amount withheld from the pay of the
employee concerned pursuant to the legal process.''.
(b) Involuntary Allotments of Pay of Members of the
Uniformed Services.--Subsection (k) of such section is
amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following new
paragraph:
``(3) Regulations under this subsection may also provide
that the administrative costs incurred in establishing and
maintaining an involuntary allotment be deducted from the
amount withheld from the pay of the member of the uniformed
services concerned pursuant to such regulations.''.
(c) Disposition of Amounts Withheld for Administrative
Expenses.--Such section is further amended by adding at the
end the following:
``(l) The amount of an agency's administrative costs
deducted under regulations prescribed pursuant to subsection
(j)(2) or (k)(3) shall be credited to the appropriation,
fund, or account from which such administrative costs were
paid.''.

SEC. 644. REPORT ON EXTENDING TO JUNIOR NONCOMMISSIONED
OFFICERS PRIVILEGES PROVIDED FOR SENIOR
NONCOMMISSIONED OFFICERS.

(a) Report Required.--Not later than February 1, 1996, the
Secretary of Defense shall submit to Congress a report
containing the determinations of the Secretary regarding
whether, in order to improve the working conditions of
noncommissioned officers in pay grades E-5 and E-6, any of
the privileges afforded noncommissioned officers in any of
the pay grades above E-6 should be extended to
noncommissioned officers in pay grades E-5 and E-6.
(b) Specific Recommendation Regarding Election of BAS.--The
Secretary shall include in the report a determination on
whether noncommissioned officers in pay grades E-5 and E-6
should be afforded the same privilege as noncommissioned
officers in pay grades above E-6 to elect to mess separately
and receive the basic allowance for subsistence.
(c) Additional Matters.--The report shall also contain a
discussion of the following matters:
(1) The potential costs of extending additional privileges
to noncommissioned officers in pay grades E-5 and E-6.
(2) The effects on readiness that would result from
extending the additional privileges.
(3) The options for extending the privileges on an
incremental basis over an extended period.
(d) Recommended Legislation.--The Secretary shall include
in the report any recommended legislation that the Secretary
considers necessary in order to authorize extension of a
privilege as determined appropriate under subsection (a).

SEC. 645. STUDY REGARDING JOINT PROCESS FOR DETERMINING
LOCATION OF RECRUITING STATIONS.

(a) Study Required.--The Secretary of Defense shall conduct
a study regarding the feasibility of--
(1) using a joint process among the Armed Forces for
determining the location of recruiting stations and the
number of military personnel required to operate such
stations; and
(2) basing such determinations on market research and
analysis conducted jointly by the Armed Forces.
(b) Report.--Not later than March 31, 1996, the Secretary
of Defense shall submit to Congress a report describing the
results of the study. The report shall include a recommended
method for measuring the efficiency of individual recruiting
stations, such as cost per accession or other efficiency
standard, as determined by the Secretary.

SEC. 646. AUTOMATIC MAXIMUM COVERAGE UNDER SERVICEMEN'S GROUP
LIFE INSURANCE.

Effective April 1, 1996, section 1967 of title 38, United
States Code, is amended--
(1) in subsections (a) and (c), by striking out
``$100,000'' each place it appears and inserting in lieu
thereof in each instance ``$200,000'';
(2) by striking out subsection (e); and
(3) by redesignating subsection (f) as subsection (e).

SEC. 647. TERMINATION OF SERVICEMEN'S GROUP LIFE INSURANCE
FOR MEMBERS OF THE READY RESERVE WHO FAIL TO
PAY PREMIUMS.

(a) Authority.--Section 1969(a)(2) of title 38, United
States Code, is amended--
(1) by inserting ``(A)'' after ``(2)''; and
(2) by adding at the end the following:
``(B) If an individual who is required pursuant to
subparagraph (A) to make a direct remittance of costs to the
Secretary concerned fails to make the required remittance
within 60 days of the date on which such remittance is due,
such individual's insurance with respect to which such
remittance is required shall be terminated by the Secretary
concerned. Such termination shall be made by written notice
to the individual's official address and shall be effective
60 days after the date of such notice. Such termination of
insurance may be vacated if, before the effective date of
termination, the individual remits all amounts past due for
such insurance and demonstrates to the satisfaction of the
Secretary concerned that the failure to make timely
remittances was justifiable.''.
(b) Conforming Amendment.--Section 1968(a) is amended by
inserting ``(or discontinued pursuant to section
1969(a)(2)(B) of this title)'' in the matter preceding
paragraph (1) after ``upon the written request of the
insured''.
(c) Effective Date.--The amendments made by this section
shall take effect on April 1, 1996.
TITLE VII--HEALTH CARE PROVISIONS
Subtitle A--Health Care Services

SEC. 701. MODIFICATION OF REQUIREMENTS REGARDING ROUTINE
PHYSICAL EXAMINATIONS AND IMMUNIZATIONS UNDER
CHAMPUS.

Section 1079(a) of title 10, United States Code, is amended
by striking out paragraph (2) and inserting in lieu thereof
the following new paragraph:
``(2) consistent with such regulations as the Secretary of
Defense may prescribe regarding the content of health
promotion and disease prevention visits, the schedule of pap
smears and mammograms, and the types and schedule of
immunizations--
``(A) for dependents under six years of age, both health
promotion and disease prevention visits and immunizations may
be provided; and
``(B) for dependents six years of age or older, health
promotion and disease prevention visits may be provided in
connection with immunizations or with diagnostic or
preventive pap smears and mammograms;''.

SEC. 702. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE
AND DEATH AND DISABILITY BENEFITS FOR CERTAIN
RESERVES.

(a) Medical and Dental Care.--Section 1074a(a) of title 10,
United States Code, is amended by adding at the end the
following new paragraph:
``(3) Each member of the armed forces who incurs or
aggravates an injury, illness, or disease in the line of duty
while remaining overnight, between successive periods of
inactive-duty training, at or in the vicinity of the site of
the inactive-duty training, if the site is outside reasonable
commuting distance from the member's residence.''.
(b) Recovery, Care, and Disposition of Remains.--Section
1481(a)(2) of title 10, United States Code, is amended--
(1) in subparagraph (C), by striking out ``or'' at the end
of the subparagraph;
(2) by redesignating subparagraph (D) as subparagraph (E);
and
(3) by inserting after subparagraph (C) the following new
subparagraph:
``(D) remaining overnight, between successive periods of
inactive-duty training, at or in the vicinity of the site of
the inactive-duty training, if the site is outside reasonable
commuting distance from the member's residence; or''.
(c) Entitlement to Basic Pay.--(1) Subsection (g)(1) of
section 204 of title 37, United States Code, is amended--
(A) in subparagraph (B), by striking out ``or'' at the end
of the subparagraph;
(B) in subparagraph (C), by striking out the period at the
end of the subparagraph and inserting in lieu thereof ``;
or''; and
(C) by inserting after subparagraph (C) the following new
subparagraph:
``(D) in line of duty while remaining overnight, between
successive periods of inactive-duty training, at or in the
vicinity of the site of the inactive-duty training, if the
site is outside reasonable commuting distance from the
member's residence.''.
(2) Subsection (h)(1) of such section is amended--
(A) in subparagraph (B), by striking out ``or'' at the end
of the subparagraph;
(B) in subparagraph (C), by striking out the period at the
end of the subparagraph and inserting in lieu thereof ``;
or''; and
(C) by inserting after subparagraph (C) the following new
subparagraph:
``(D) in line of duty while remaining overnight, between
successive periods of inactive-duty training, at or in the
vicinity of the site of the inactive-duty training, if the
site is outside reasonable commuting distance from the
member's residence.''.
(d) Compensation for Inactive-Duty Training.--Section
206(a)(3) of title 37, United States Code, is amended--
(1) in subparagraph (A), by striking out ``or'' at the end
of clause (ii);
(2) in subparagraph (B), by striking out the period at the
end of the subparagraph and inserting in lieu thereof ``;
or''; and
(3) by inserting after subparagraph (B) the following new
subparagraph:
``(C) in line of duty while remaining overnight, between
successive periods of inactive-duty training, at or in the
vicinity of the site of the inactive-duty training, if the
site is outside reasonable commuting distance from the
member's residence.''.

SEC. 703. MEDICAL CARE FOR SURVIVING DEPENDENTS OF RETIRED
RESERVES WHO DIE BEFORE AGE 60.

(a) Change in Eligibility Requirements.--Paragraph (2) of
section 1076(b) of title 10, United States Code, is amended--
(1) by striking out ``death (A) would'' and inserting in
lieu thereof ``death would''; and
(2) by striking out ``, and (B) had elected to participate
in the Survivor Benefit Plan established under subchapter II
of chapter 73 of this title''.
(b) Conforming Amendments.--Such paragraph is further
amended--
(1) in the matter following paragraph (2), by striking out
``clause (2)'' the first place it appears and inserting in
lieu thereof ``paragraph (2)''; and
(2) by striking out the second sentence.

[[Page H407]]

SEC. 704. MEDICAL AND DENTAL CARE FOR MEMBERS OF THE SELECTED
RESERVE ASSIGNED TO EARLY DEPLOYING UNITS OF
THE ARMY SELECTED RESERVE.

(a) Annual Medical and Dental Screenings and Care.--Section
1074a of title 10, United States Code, is amended--
(1) in subsection (c), by striking out ``this section'' and
inserting in lieu thereof ``subsection (b)''; and
(2) by adding at the end the following new subsection:
``(d)(1) The Secretary of the Army shall provide to members
of the Selected Reserve of the Army who are assigned to units
scheduled for deployment within 75 days after mobilization
the following medical and dental services:
``(A) An annual medical screening.
``(B) For members who are over 40 years of age, a full
physical examination not less often than once every two
years.
``(C) An annual dental screening.
``(D) The dental care identified in an annual dental
screening as required to ensure that a member meets the
dental standards required for deployment in the event of
mobilization.
``(2) The services provided under this subsection shall be
provided at no cost to the member.''.
(b) Conforming Repeals.--Sections 1117 and 1118 of the Army
National Guard Combat Readiness Reform Act of 1992 (title XI
of Public Law 102-484; 10 U.S.C. 3077 note) are repealed.

SEC. 705. DENTAL INSURANCE FOR MEMBERS OF THE SELECTED
RESERVE.

(a) Program Authorization.--(1) Chapter 55 of title 10,
United States Code, is amended by inserting after section
1076a the following new section:

``Sec. 1076b. Selected Reserve dental insurance

``(a) Authority To Establish Plan.--The Secretary of
Defense shall establish a dental insurance plan for members
of the Selected Reserve of the Ready Reserve. The plan shall
provide for voluntary enrollment and for premium sharing
between the Department of Defense and the members enrolled in
the plan. The plan shall be administered under regulations
prescribed by the Secretary of Defense.
``(b) Premium Sharing.--(1) A member enrolling in the
dental insurance plan shall pay a share of the premium
charged for the insurance coverage. The member's share may
not exceed $25 per month.
``(2) The Secretary of Defense may reduce the monthly
premium required to be paid by enlisted members under
paragraph (1) if the Secretary determines that the reduction
is appropriate in order to assist enlisted members to
participate in the dental insurance plan.
``(3) A member's share of the premium for coverage by the
dental insurance plan shall be deducted and withheld from the
basic pay payable to the member for inactive duty training
and from the basic pay payable to the member for active duty.
``(4) The Secretary of Defense shall pay the portion of the
premium charged for coverage of a member under the dental
insurance plan that exceeds the amount paid by the member.
``(c) Benefits Available Under the Plan.--The dental
insurance plan shall provide benefits for basic dental care
and treatment, including diagnostic services, preventative
services, basic restorative services, and emergency oral
examinations.
``(d) Termination of Coverage.--The coverage of a member by
the dental insurance plan shall terminate on the last day of
the month in which the member is discharged, transfers to the
Individual Ready Reserve, Standby Reserve, or Retired
Reserve, or is ordered to active duty for a period of more
than 30 days.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
1076a the following:

``1076b. Selected Reserve dental insurance.''.

(b) Implementation.--Beginning not later than October 1,
1996, the Secretary of Defense shall offer members of the
Selected Reserve the opportunity to enroll in the dental
insurance plan required under section 1076b of title 10,
United States Code (as added by subsection (a)). During
fiscal year 1996, the Secretary shall collect such
information and complete such planning and other preparations
as are necessary to offer and administer the dental insurance
plan by that date. The activities undertaken by the Secretary
under this subsection during fiscal year 1996 may include--
(1) surveys; and
(2) tests, in not more than three States, of a dental
insurance plan or alternative dental insurance plans meeting
the requirements of section 1076b of title 10, United States
Code.

SEC. 706. PERMANENT AUTHORITY TO CARRY OUT SPECIALIZED
TREATMENT FACILITY PROGRAM.

Section 1105 of title 10, United States Code, is amended by
striking out subsection (h).
Subtitle B--TRICARE Program

SEC. 711. DEFINITION OF TRICARE PROGRAM.

For purposes of this subtitle, the term ``TRICARE program''
means the managed health care program that is established by
the Secretary of Defense under the authority of chapter 55 of
title 10, United States Code, principally section 1097 of
such title, and includes the competitive selection of
contractors to financially underwrite the delivery of health
care services under the Civilian Health and Medical Program
of the Uniformed Services.

SEC. 712. PRIORITY USE OF MILITARY TREATMENT FACILITIES FOR
PERSONS ENROLLED IN MANAGED CARE INITIATIVES.

Section 1097(c) of title 10, United States Code, is amended
in the third sentence by striking out ``However, the
Secretary may'' and inserting in lieu thereof
``Notwithstanding the preferences established by sections
1074(b) and 1076 of this title, the Secretary shall''.

SEC. 713. STAGGERED PAYMENT OF ENROLLMENT FEES FOR TRICARE
PROGRAM.

Section 1097(e) of title 10, United States Code, is amended
by adding at the end the following new sentence: ``Without
imposing additional costs on covered beneficiaries who
participate in contracts for health care services under this
section or health care plans offered under section 1099 of
this title, the Secretary shall permit such covered
beneficiaries to pay, on a quarterly basis, any enrollment
fee required for such participation.''.

SEC. 714. REQUIREMENT OF BUDGET NEUTRALITY FOR TRICARE
PROGRAM TO BE BASED ON ENTIRE PROGRAM.

(a) Change in Budget Neutrality Requirements.--Subsection
(c) of section 731 of the National Defense Authorization Act
for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 1073
note) is amended--
(1) by striking out ``each managed health care initiative
that includes the option'' and inserting in lieu thereof
``the TRICARE program''; and
(2) by striking out ``covered beneficiaries who enroll in
the option'' and inserting in lieu thereof ``members of the
uniformed services and covered beneficiaries who participate
in the TRICARE program''.
(b) Addition of Definition of TRICARE Program.--Subsection
(d) of such section is amended to read as follows:
``(d) Definitions.--For purposes of this section:
``(1) The term `covered beneficiary' means a beneficiary
under chapter 55 of title 10, United States Code, other than
a beneficiary under section 1074(a) of such title.
``(2) The term `TRICARE program' means the managed health
care program that is established by the Secretary of Defense
under the authority of chapter 55 of title 10, United States
Code, principally section 1097 of such title, and includes
the competitive selection of contractors to financially
underwrite the delivery of health care services under the
Civilian Health and Medical Program of the Uniformed
Services.''.

SEC. 715. TRAINING IN HEALTH CARE MANAGEMENT AND
ADMINISTRATION FOR TRICARE LEAD AGENTS.

(a) Provision of Training.--Not later than six months after
the date of the enactment of this Act, the Secretary of
Defense shall implement a professional educational program to
provide appropriate training in health care management and
administration--
(1) to each commander of a military medical treatment
facility of the Department of Defense who is selected to
serve as a lead agent to coordinate the delivery of health
care by military and civilian providers under the TRICARE
program; and
(2) to appropriate members of the support staff of the
treatment facility who will be responsible for daily
operation of the TRICARE program.
(b) Report on Implementation.--Not later than six months
after the date of the enactment of this Act, the Secretary of
Defense shall submit to Congress a report describing the
professional educational program implemented pursuant to this
section.

SEC. 716. PILOT PROGRAM OF INDIVIDUALIZED RESIDENTIAL MENTAL
HEALTH SERVICES.

(a) Program Required.--(1) During fiscal year 1996, the
Secretary of Defense, in consultation with the other
administering Secretaries under chapter 55 of title 10,
United States Code, shall implement a pilot program to
provide residential and wraparound services to children
described in paragraph (2) who are in need of mental health
services. The Secretary shall implement the pilot program for
an initial period of at least two years in a military health
care region in which the TRICARE program has been
implemented.
(2) A child shall be eligible for selection to participate
in the pilot program if the child is a dependent (as
described in subparagraph (D) or (I) of section 1072(2) of
title 10, United States Code) who--
(A) is eligible for health care under section 1079 or 1086
of such title; and
(B) has a serious emotional disturbance that is generally
regarded as amenable to treatment.
(b) Wraparound Services Defined.--For purposes of this
section, the term ``wraparound services'' means
individualized mental health services that are provided
principally to allow a child to remain in the family home or
other least-restrictive and least-costly setting, but also
are provided as an aftercare planning service for children
who have received acute or residential care. Such term
includes nontraditional mental health services that will
assist the child to be maintained in the least-restrictive
and least-costly setting.
(c) Pilot Program Agreement.--Under the pilot program the
Secretary of Defense shall enter into one or more agreements
that require a mental health services provider under the
agreement--

[[Page H408]]

(1) to provide wraparound services to a child described in
subsection (a)(2);
(2) to continue to provide such services as needed during
the period of the agreement even if the child moves to
another location within the same TRICARE program region
during that period; and
(3) to share financial risk by accepting as a maximum
annual payment for such services a case-rate reimbursement
not in excess of the amount of the annual standard CHAMPUS
residential treatment benefit payable (as determined in
accordance with section 8.1 of chapter 3 of volume II of the
CHAMPUS policy manual).
(d) Report.--Not later than March 1, 1998, the Secretary of
Defense shall submit to the Committee on Armed Services of
the Senate and the Committee on National Security of the
House of Representatives a report on the program carried out
under this section. The report shall contain--
(1) an assessment of the effectiveness of the program; and
(2) the Secretary's views regarding whether the program
should be implemented throughout the military health care
system.

SEC. 717. EVALUATION AND REPORT ON TRICARE PROGRAM
EFFECTIVENESS.

(a) Evaluation Required.--The Secretary of Defense shall
arrange for an on-going evaluation of the effectiveness of
the TRICARE program in meeting the goals of increasing the
access of covered beneficiaries under chapter 55 of title 10,
United States Code, to health care and improving the quality
of health care provided to covered beneficiaries, without
increasing the costs incurred by the Government or covered
beneficiaries. The evaluation shall specifically address--
(1) the impact of the TRICARE program on military retirees
with regard to access, costs, and quality of health care
services; and
(2) identify noncatchment areas in which the health
maintenance organization option of the TRICARE program is
available or is proposed to become available.
(b) Entity To Conduct Evaluation.--The Secretary may use a
federally funded research and development center to conduct
the evaluation required by subsection (a).
(c) Annual Report.--Not later than March 1, 1997, and each
March 1 thereafter, the Secretary shall submit to Congress a
report describing the results of the evaluation under
subsection (a) during the preceding year.

SEC. 718. SENSE OF CONGRESS REGARDING ACCESS TO HEALTH CARE
UNDER TRICARE PROGRAM FOR COVERED BENEFICIARIES
WHO ARE MEDICARE ELIGIBLE.

(a) Findings.--Congress finds the following:
(1) Medical care provided in facilities of the uniformed
services is generally less expensive to the Federal
Government than the same care provided at Government expense
in the private sector.
(2) Covered beneficiaries under the military health care
provisions of chapter 55, United States Code, who are
eligible for medicare under title XVIII of the Social
Security Act (42 U.S.C. 1395 et seq.) deserve health care
options that empower them to choose the health plan that best
fits their needs.
(b) Sense of Congress.--In light of the findings specified
in subsection (a), it is the sense of Congress that--
(1) the Secretary of Defense should develop a program to
ensure that such covered beneficiaries who reside in a region
in which the TRICARE program has been implemented continue to
have adequate access to health care services after the
implementation of the TRICARE program; and
(2) as a means of ensuring such access, the budget for
fiscal year 1997 submitted by the President under section
1105 of title 31, United States Code, should provide for
reimbursement by the Health Care Financing Administration to
the Department of Defense for health care services provided
to such covered beneficiaries in medical treatment facilities
of the Department of Defense.
Subtitle C--Uniformed Services Treatment Facilities

SEC. 721. DELAY OF TERMINATION OF STATUS OF CERTAIN
FACILITIES AS UNIFORMED SERVICES TREATMENT
FACILITIES.

Section 1252(e) of the Department of Defense Authorization
Act, 1984 (42 U.S.C. 248d(e)) is amended by striking out
``December 31, 1996'' in the first sentence and inserting in
lieu thereof ``September 30, 1997''.

SEC. 722. LIMITATION ON EXPENDITURES TO SUPPORT UNIFORMED
SERVICES TREATMENT FACILITIES.

Subsection (f) of section 1252 of the Department of Defense
Authorization Act, 1984 (42 U.S.C. 248d), is amended to read
as follows:
``(f) Limitation on Expenditures.--The total amount of
expenditures by the Secretary of Defense to carry out this
section and section 911 of the Military Construction
Authorization Act, 1982 (42 U.S.C. 248c), for fiscal year
1996 may not exceed $300,000,000, adjusted by the Secretary
to reflect the inflation factor used by the Department of
Defense for such fiscal year.''.

SEC. 723. APPLICATION OF CHAMPUS PAYMENT RULES IN CERTAIN
CASES.

Section 1074 of title 10, United States Code, is amended by
adding at the end the following new subsection:
``(d)(1) The Secretary of Defense may require, by
regulation, a private CHAMPUS provider to apply the CHAMPUS
payment rules (subject to any modifications considered
appropriate by the Secretary) in imposing charges for health
care that the private CHAMPUS provider provides to a member
of the uniformed services who is enrolled in a health care
plan of a facility deemed to be a facility of the uniformed
services under section 911(a) of the Military Construction
Authorization Act, 1982 (42 U.S.C. 248c(a)) when the health
care is provided outside the catchment area of the facility.
``(2) In this subsection:
``(A) The term `private CHAMPUS provider' means a private
facility or health care provider that is a health care
provider under the Civilian Health and Medical Program of the
Uniformed Services.
``(B) The term `CHAMPUS payment rules' means the payment
rules referred to in subsection (c).
``(3) The Secretary of Defense shall prescribe regulations
under this subsection after consultation with the other
administering Secretaries.''.

SEC. 724. APPLICATION OF FEDERAL ACQUISITION REGULATION TO
PARTICIPATION AGREEMENTS WITH UNIFORMED
SERVICES TREATMENT FACILITIES.

(a) Section 718(c) of the National Defense Authorization
Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1587)
is amended--
(1) in the second sentence of paragraph (1), by striking
out ``A participation agreement'' and inserting in lieu
thereof ``Except as provided in paragraph (4), a
participation agreement'';
(2) by redesignating paragraph (4) as paragraph (6); and
(3) by inserting after paragraph (3) the following new
paragraph:
``(4) Application of federal acquisition regulation.--On
and after the date of the enactment of this paragraph,
Uniformed Services Treatment Facilities and any participation
agreement between Uniformed Services Treatment Facilities and
the Secretary of Defense shall be subject to the Federal
Acquisition Regulation issued pursuant to section 25(c) of
the Office of Federal Procurement Policy Act (41 U.S.C.
421(c)) notwithstanding any provision to the contrary in such
a participation agreement. The requirements regarding
competition in the Federal Acquisition Regulation shall apply
with regard to the negotiation of any new participation
agreement between the Uniformed Services Treatment Facilities
and the Secretary of Defense under this subsection or any
other provision of law.''.
(b) Sense of Congress.--(1) Congress finds that the
Uniformed Services Treatment Facilities provide quality
health care to the 120,000 Department of Defense
beneficiaries enrolled in the Uniformed Services Family
Health Plan provided by these facilities.
(2) In light of such finding, it is the sense of Congress
that the Uniformed Services Family Health Plan provided by
the Uniformed Services Treatment Facilities should not be
terminated for convenience under provisions of the Federal
Acquisition Regulation by the Secretary of Defense before the
expiration of the current participation agreements.
(3) For purposes of this subsection, the term ``Uniformed
Services Treatment Facility'' means a facility deemed to be a
facility of the uniformed services by virtue of section
911(a) of the Military Construction Authorization Act, 1982
(42 U.S.C. 248c(a)).

SEC. 725. DEVELOPMENT OF PLAN FOR INTEGRATING UNIFORMED
SERVICES TREATMENT FACILITIES IN MANAGED CARE
PROGRAMS OF DEPARTMENT OF DEFENSE.

Section 718(c) of the National Defense Authorization Act
for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1587) is
amended by inserting after paragraph (4), as added by section
722, the following new paragraph:
``(5) Plan for integrating facilities.--(A) The Secretary
of Defense shall develop a plan under which Uniformed
Services Treatment Facilities could be included, before the
expiration date of the participation agreements entered into
under this section, in the exclusive health care provider
networks established by the Secretary for the geographic
regions in which the facilities are located. The Secretary
shall address in the plan the feasibility of implementing the
managed care plan of the Uniformed Services Treatment
Facilities, known as Option II, on a mandatory basis for all
USTF Medicare-eligible beneficiaries and the potential cost
savings to the Military Health Care Program that could be
achieved under such option.
``(B) The Secretary shall submit the plan developed under
this paragraph to Congress not later than March 1, 1996.
``(C) The plan developed under this paragraph shall be
consistent with the requirements specified in paragraph (4).
If the plan is not submitted to Congress by the expiration
date of the participation agreements entered into under this
section, the participation agreements shall remain in effect,
at the option of the Uniformed Services Treatment Facilities,
until the end of the 180-day period beginning on the date the
plan is finally submitted.
``(D) For purposes of this paragraph, the term `USTF
Medicare-eligible beneficiaries' means covered beneficiaries
under chapter 55 of title 10, United States Code, who are
enrolled in a managed health plan offered by the Uniformed
Services Treatment Facilities and entitled to hospital
insurance benefits under part A of title XVIII of the Social
Security Act (42 U.S.C. 1395c et seq.).''.

[[Page H409]]

SEC. 726. EQUITABLE IMPLEMENTATION OF UNIFORM COST SHARING
REQUIREMENTS FOR UNIFORMED SERVICES TREATMENT
FACILITIES.

(a) Time for Fee Implementation.--The uniform managed care
benefit fee and copayment schedule developed by the Secretary
of Defense for use in all managed care initiatives of the
military health service system, including the managed care
program of the Uniformed Services Treatment Facilities, shall
be extended to the managed care program of a Uniformed
Services Treatment Facility only after the later of--
(1) the implementation of the TRICARE regional program
covering the service area of the Uniformed Services Treatment
Facility; or
(2) October 1, 1996.
(b) Submission of Actuarial Estimates.--Paragraph (2) of
subsection (a) shall operate as a condition on the extension
of the uniform managed care benefit fee and copayment
schedule to the Uniformed Services Treatment Facilities only
if the Uniformed Services Treatment Facilities submit to the
Comptroller General of the United States, within 30 days
after the date of the enactment of this Act, actuarial
estimates in support of their contention that the extension
of such fees and copayments will have an adverse effect on
the operation of the Uniformed Services Treatment Facilities
and the enrollment of participants.
(c) Evaluation.--(1) Except as provided in paragraph (2),
not later than 90 days after the date of the enactment of
this Act, the Comptroller General shall submit to Congress
the results of an evaluation of the effect on the Uniformed
Services Treatment Facilities of the extension of the uniform
benefit fee and copayment schedule to the Uniformed Services
Treatment Facilities. The evaluation shall include an
examination of whether the benefit fee and copayment schedule
may--
(A) cause adverse selection of enrollees;
(B) be inappropriate for a fully at-risk program similar to
civilian health maintenance organizations; or
(C) result in an enrolled population dissimilar to the
general beneficiary population.
(2) The Comptroller General shall not be required to
prepare or submit the evaluation under paragraph (1) if the
Uniformed Services Treatment Facilities fail to
satisfactorily comply with subsection (b), as determined by
the Comptroller General.

SEC. 727. ELIMINATION OF UNNECESSARY ANNUAL REPORTING
REQUIREMENT REGARDING UNIFORMED SERVICES
TREATMENT FACILITIES.

Section 1252 of the Department of Defense Authorization
Act, 1984 (42 U.S.C. 248d), is amended by striking out
subsection (d).
Subtitle D--Other Changes to Existing Laws Regarding Health Care
Management

SEC. 731. MAXIMUM ALLOWABLE PAYMENTS TO INDIVIDUAL HEALTH-
CARE PROVIDERS UNDER CHAMPUS.

(a) Maximum Payment.--Subsection (h) of section 1079 of
title 10, United States Code, is amended by striking out
paragraph (1) and inserting in lieu thereof the following new
paragraph:
``(1) Payment for a charge for services by an individual
health care professional (or other noninstitutional health
care provider) for which a claim is submitted under a plan
contracted for under subsection (a) may not exceed the lesser
of--
``(A) the amount equivalent to the 80th percentile of
billed charges made for similar services in the same locality
during the base period; or
``(B) an amount determined to be appropriate, to the extent
practicable, in accordance with the same reimbursement rules
as apply to payments for similar services under title XVIII
of the Social Security Act (42 U.S.C. 1395 et seq.).''.
(b) Comparison to Medicare Payments.--Such subsection is
further amended by adding at the end the following new
paragraph:
``(3) For the purposes of paragraph (1)(B), the appropriate
payment amount shall be determined by the Secretary of
Defense, in consultation with the other administering
Secretaries.''.
(c) Exceptions and Limitations.--Such subsection is further
amended by inserting after paragraph (3), as added by
subsection (b), the following new paragraphs:
``(4) The Secretary of Defense, in consultation with the
other administering Secretaries, shall prescribe regulations
to provide for such exceptions to the payment limitations
under paragraph (1) as the Secretary determines to be
necessary to assure that covered beneficiaries retain
adequate access to health care services. Such exceptions may
include the payment of amounts higher than the amount allowed
under paragraph (1) when enrollees in managed care programs
obtain covered emergency services from nonparticipating
providers. To provide a suitable transition from the payment
methodologies in effect before the date of the enactment of
this paragraph to the methodology required by paragraph (1),
the amount allowable for any service may not be reduced by
more than 15 percent below the amount allowed for the same
service during the immediately preceding 12-month period (or
other period as established by the Secretary of Defense).
``(5) The Secretary of Defense, in consultation with the
other administering Secretaries, shall prescribe regulations
to establish limitations (similar to the limitations
established under title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.)) on beneficiary liability for charges of
an individual health care professional (or other
noninstitutional health care provider).''.
(d) Conforming Amendment.--Paragraph (2) of such subsection
is amended by striking out ``paragraph (1)'' and inserting in
lieu thereof ``paragraph (1)(A)''.
(e) Report on Effect of Amendments.--Not later than March
1, 1996, the Secretary of Defense shall submit to Congress a
report analyzing the effect of the amendments made by this
section on the ability or willingness of individual health
care professionals and other noninstitutional health care
providers to participate in the Civilian Health and Medical
Program of the Uniformed Services.

SEC. 732. NOTIFICATION OF CERTAIN CHAMPUS COVERED
BENEFICIARIES OF LOSS OF CHAMPUS ELIGIBILITY.

Section 1086(d) of title 10, United States Code, is amended
by adding at the end the following new paragraph:
``(4) The administering Secretaries shall develop a
mechanism by which persons described in paragraph (1) who
satisfy only the criteria specified in subparagraphs (A) and
(B) of paragraph (2), but not subparagraph (C) of such
paragraph, are promptly notified of their ineligibility for
health benefits under this section. In developing the
notification mechanism, the administering Secretaries shall
consult with the administrator of the Health Care Financing
Administration.''.

SEC. 733. PERSONAL SERVICES CONTRACTS FOR MEDICAL TREATMENT
FACILITIES OF THE COAST GUARD.

(a) Contracting Authority.--Section 1091(a) of title 10,
United States Code, is amended--
(1) by inserting after ``Secretary of Defense'' the
following: ``, with respect to medical treatment facilities
of the Department of Defense, and the Secretary of
Transportation, with respect to medical treatment facilities
of the Coast Guard when the Coast Guard is not operating as a
service in the Navy,''; and
(2) by striking out ``medical treatment facilities of the
Department of Defense'' and inserting in lieu thereof ``such
facilities''.
(b) Ratification of Existing Contracts.--Any exercise of
authority under section 1091 of title 10, United States Code,
to enter into a personal services contract on behalf of the
Coast Guard before the effective date of the amendments made
by subsection (a) is hereby ratified.
(c) Effective Date.--The amendments made by subsection (a)
shall take effect as of October 1, 1995.

SEC. 734. IDENTIFICATION OF THIRD-PARTY PAYER SITUATIONS.

Section 1095 of title 10, United States Code, is amended by
adding at the end the following new subsection:
``(k)(1) To improve the administration of this section and
sections 1079(j)(1) and 1086(d) of this title, the Secretary
of Defense, in consultation with the other administering
Secretaries, may prescribe regulations providing for the
collection of information regarding insurance, medical
service, or health plans of third-party payers held by
covered beneficiaries.
``(2) The collection of information under regulations
prescribed under paragraph (1) shall be conducted in the same
manner as is provided in section 1862(b)(5) of the Social
Security Act (42 U.S.C. 1395y(b)(5)). The Secretary may
provide for obtaining from the Commissioner of Social
Security employment information comparable to the information
provided to the Administrator of the Health Care Financing
Administration pursuant to such section. Such regulations may
require the mandatory disclosure of Social Security account
numbers for all covered beneficiaries.
``(3) The Secretary may disclose relevant employment
information collected under this subsection to fiscal
intermediaries or other designated contractors.
``(4) The Secretary may provide for contacting employers of
covered beneficiaries to obtain group health plan information
comparable to the information authorized to be obtained under
section 1862(b)(5)(C) of the Social Security Act (42 U.S.C.
1395y(b)(5)(C)). Notwithstanding clause (iii) of such
section, clause (ii) of such section regarding the imposition
of civil money penalties shall apply to the collection of
information under this paragraph.
``(5) Information obtained under this subsection may not be
disclosed for any purpose other than to carry out the purpose
of this section and sections 1079(j)(1) and 1086(d) of this
title.''.

SEC. 735. REDESIGNATION OF MILITARY HEALTH CARE ACCOUNT AS
DEFENSE HEALTH PROGRAM ACCOUNT AND TWO-YEAR
AVAILABILITY OF CERTAIN ACCOUNT FUNDS.

(a) Redesignation.--Section 1100 of title 10, United States
Code, is amended--
(1) in subsection (a)(1)--
(A) by striking out ``Military Health Care Account'' and
inserting in lieu thereof ``Defense Health Program Account'';
and
(B) by striking out ``the Civilian Health and Medical
Program of the Uniformed Services'' and inserting in lieu
thereof ``medical and health care programs of the Department
of Defense''; and
(2) in subsection (b)--
(A) by striking out ``entering into a contract'' and
inserting in lieu thereof ``conducting programs and
activities under this chapter, including contracts entered
into''; and

[[Page H410]]

(B) by inserting a comma after ``title''.
(b) Two Year Availability of Certain Appropriations.--
Subsection (a)(2) of such section is amended to read as
follows:
``(2) Of the total amount appropriated for a fiscal year
for programs and activities carried out under this chapter,
the amount equal to three percent of such total amount shall
remain available for obligation until the end of the
following fiscal year.''.
(c) Conforming Amendments.--Such section is further
amended--
(1) by striking out subsections (c), (d), and (f); and
(2) by redesignating subsection (e) as subsection (c).
(d) Clerical Amendments.--(1) The heading of such section
is amended to read as follows:

``Sec. 1100. Defense Health Program Account''.

(2) The item relating to such section in the table of
sections at the beginning of chapter 55 of such title is
amended to read as follows:

``1100. Defense Health Program Account.''.

SEC. 736. EXPANSION OF FINANCIAL ASSISTANCE PROGRAM FOR
HEALTH-CARE PROFESSIONALS IN RESERVE COMPONENTS
TO INCLUDE DENTAL SPECIALTIES.

Section 16201(b) of title 10, United States Code, is
amended--
(1) in the subsection heading, by inserting ``and
Dentists'' after ``Physicians'';
(2) in paragraph (1)(A), by inserting ``or dental school''
after ``medical school'';
(3) in paragraphs (1)(B) and (2)(B), by inserting ``or
dental officer'' after ``medical officer''; and
(4) in paragraph (1)(C), by striking out ``physicians in a
medical specialty'' and inserting in lieu thereof
``physicians or dentists in a medical or dental specialty''.

SEC. 737. APPLICABILITY OF LIMITATION ON PRICES OF
PHARMACEUTICALS PROCURED FOR COAST GUARD.

(a) Inclusion of Coast Guard.--Section 8126(b) of title 38,
United States Code, is amended by adding at the end the
following new paragraph:
``(4) The Coast Guard.''.
(b) Effective Date; Application of Amendment.--The
amendment made by subsection (a) shall take effect as if
included in the enactment of section 603 of the Veterans
Health Care Act of 1992 (Public Law 102-585; 106 Stat. 4971).

SEC. 738. RESTRICTION ON USE OF DEPARTMENT OF DEFENSE
FACILITIES FOR ABORTIONS.

(a) In General.--Section 1093 of title 10, United States
Code, is amended--
(1) by inserting ``(a) Restriction on Use of Funds.--''
before ``Funds available''; and
(2) by adding at the end the following:
``(b) Restriction on Use of Facilities.--No medical
treatment facility or other facility of the Department of
Defense may be used to perform an abortion except where the
life of the mother would be endangered if the fetus were
carried to term or in a case in which the pregnancy is the
result of an act of rape or incest.''.
(b) Clerical Amendments.--(1) The heading of such section
is amended to read as follows:

``Sec. 1093. Performance of abortions: restrictions''.

(2) The item relating to such section in the table of
sections at the beginning of chapter 55 of such title is
amended to read as follows:
``1093. Performance of abortions: restrictions.''.
Subtitle E--Other Matters

SEC. 741. TRISERVICE NURSING RESEARCH.

(a) Program Authorized.--Chapter 104 of title 10, United
States Code, is amended by adding at the end the following
new section:

``Sec. 2116. Military nursing research

``(a) Definitions.--In this section:
``(1) The term `military nursing research' means research
on the furnishing of care and services by nurses in the armed
forces.
``(2) The term `TriService Nursing Research Program' means
the program of military nursing research authorized under
this section.
``(b) Program Authorized.--The Secretary of Defense may
establish at the University a program of military nursing
research.
``(c) TriService Research Group.--The TriService Nursing
Research Program shall be administered by a TriService
Nursing Research Group composed of Army, Navy, and Air Force
nurses who are involved in military nursing research and are
designated by the Secretary concerned to serve as members of
the group.
``(d) Duties of Group.--The TriService Nursing Research
Group shall--
``(1) develop for the Department of Defense recommended
guidelines for requesting, reviewing, and funding proposed
military nursing research projects; and
``(2) make available to Army, Navy, and Air Force nurses
and Department of Defense officials concerned with military
nursing research--
``(A) information about nursing research projects that are
being developed or carried out in the Army, Navy, and Air
Force; and
``(B) expertise and information beneficial to the
encouragement of meaningful nursing research.
``(e) Research Topics.--For purposes of this section,
military nursing research includes research on the following
issues:
``(1) Issues regarding how to improve the results of
nursing care and services provided in the armed forces in
time of peace.
``(2) Issues regarding how to improve the results of
nursing care and services provided in the armed forces in
time of war.
``(3) Issues regarding how to prevent complications
associated with battle injuries.
``(4) Issues regarding how to prevent complications
associated with the transporting of patients in the military
medical evacuation system.
``(5) Issues regarding how to improve methods of training
nursing personnel.
``(6) Clinical nursing issues, including such issues as
prevention and treatment of child abuse and spouse abuse.
``(7) Women's health issues.
``(8) Wellness issues.
``(9) Preventive medicine issues.
``(10) Home care management issues.
``(11) Case management issues.''.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 104 of such title is amended by adding
at the end the following:

``2116. Military nursing research.''.

SEC. 742. TERMINATION OF PROGRAM TO TRAIN MILITARY
PSYCHOLOGISTS TO PRESCRIBE PSYCHOTROPIC
MEDICATIONS.

(a) Termination.--Not later than June 30, 1997, the
Secretary of Defense shall terminate the demonstration pilot
program for training military psychologists in the
prescription of psychotropic medications, which is referred
to in section 8097 of the Department of Defense
Appropriations Act, 1991 (Public Law 101-511; 104 Stat.
1897).
(b) Prohibition on Additional Enrollees Pending
Termination.--After the date of the enactment of this Act,
the Secretary of Defense may not enroll any new participants
for the demonstration pilot program described in subsection
(a).
(c) Effect on Current Participants.--The requirement to
terminate the demonstration pilot program described in
subsection (a) shall not be construed to affect the training
or utilization of military psychologists in the prescription
of psychotropic medications who are participating in the
demonstration pilot program on the date of the enactment of
this Act or who have completed such training before that
date.
(d) Evaluation.--As soon as possible after the date of the
enactment of this Act, but not later than April 1, 1997, the
Comptroller General of the United States shall submit to
Congress a report evaluating the success of the demonstration
pilot program described in subsection (a). The report shall
include--
(1) a cost-benefit analysis of the program;
(2) a discussion of the utilization requirements under the
program; and
(3) recommendations regarding--
(A) whether the program should be extended so as to
continue to provide training to military psychologists in the
prescription of psychotropic medications; and
(B) any modifications that should be made in the manner in
which military psychologists are trained and used to
prescribe psychotropic medications so as to improve the
training provided under the program, if the program is
extended.

SEC. 743. WAIVER OF COLLECTION OF PAYMENTS DUE FROM CERTAIN
PERSONS UNAWARE OF LOSS OF CHAMPUS ELIGIBILITY.

(a) Authority To Waive Collection.--The administering
Secretaries may waive the collection of payments otherwise
due from a person described in subsection (b) as a result of
the receipt by the person of health benefits under section
1086 of title 10, United States Code, after the termination
of the person's eligibility for such benefits.
(b) Persons Eligible for Waiver.--A person shall be
eligible for relief under subsection (a) if the person--
(1) is a person described in paragraph (1) of subsection
(d) of section 1086 of title 10, United States Code;
(2) in the absence of such paragraph, would have been
eligible for health benefits under such section; and
(3) at the time of the receipt of such benefits, satisfied
the criteria specified in subparagraphs (A) and (B) of
paragraph (2) of such subsection.
(c) Extent of Waiver Authority.--The authority to waive the
collection of payments pursuant to this section shall apply
with regard to health benefits provided under section 1086 of
title 10, United States Code, to persons described in
subsection (b) during the period beginning on January 1,
1967, and ending on the later of--
(1) the termination date of any special enrollment period
provided under title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.) specifically for such persons; and
(2) July 1, 1996.
(d) Definitions.--For purposes of this section, the term
``administering Secretaries'' has the meaning given such term
in section 1072(3) of title 10, United States Code.

SEC. 744. DEMONSTRATION PROGRAM TO TRAIN MILITARY MEDICAL
PERSONNEL IN CIVILIAN SHOCK TRAUMA UNITS.

(a) Demonstration Program.--(1) Not later than April 1,
1996, the Secretary of Defense shall implement a
demonstration program to evaluate the feasibility of
providing shock trauma training for military medical
personnel through one or more public or nonprofit hospitals.
The Secretary shall carry out the program pursuant to an
agreement with such hospitals.
(2) Under the agreement with a hospital, the Secretary
shall assign military medical personnel participating in the
demonstration program to temporary duty in shock trauma units
operated by the hospitals that are parties to the agreement.

[[Page H411]]

(3) The agreement shall require, as consideration for the
services provided by military medical personnel under the
agreement, that the hospital provide appropriate care to
members of the Armed Forces and to other persons whose care
in the hospital would otherwise require reimbursement by the
Secretary. The value of the services provided by the
hospitals shall be at least equal to the value of the
services provided by military medical personnel under the
agreement.
(b) Termination of Program.--The authority of the Secretary
of Defense to conduct the demonstration program under this
section, and any agreement entered into under the
demonstration program, shall expire on March 31, 1998.
(c) Report and Evaluation of Program.--(1) Not later than
March 1 of each year in which the demonstration program is
conducted under this section, the Secretary of Defense shall
submit to Congress a report describing the scope and
activities of the demonstration program during the preceding
year.
(2) Not later than May 1, 1998, the Comptroller General of
the United States shall submit to Congress a report
evaluating the effectiveness of the demonstration program in
providing shock trauma training for military medical
personnel.

SEC. 745. STUDY REGARDING DEPARTMENT OF DEFENSE EFFORTS TO
DETERMINE APPROPRIATE FORCE LEVELS OF WARTIME
MEDICAL PERSONNEL.

(a) Study Required.--The Comptroller General of the United
States shall conduct a study to evaluate the reasonableness
of the models used by each military department for
determining the appropriate wartime force level for medical
personnel in the department. The study shall include the
following:
(1) An assessment of the modeling techniques used by each
department.
(2) An analysis of the data used in the models to identify
medical personnel requirements.
(3) An identification of the ability of the models to
integrate personnel of reserve components to meet department
requirements.
(4) An evaluation of the ability of the Secretary of
Defense to integrate the various modeling efforts into a
comprehensive, coordinated plan for obtaining the optimum
force level for wartime medical personnel.
(b) Report of Study.--Not later than June 30, 1996, the
Comptroller General shall report to Congress on the results
of the study conducted under subsection (a).

SEC. 746. REPORT ON IMPROVED ACCESS TO MILITARY HEALTH CARE
FOR COVERED BENEFICIARIES ENTITLED TO MEDICARE.

Not later than March 1, 1996, the Secretary of Defense
shall submit to Congress a report evaluating the feasibility,
costs, and consequences for the military health care system
of improving access to the system for covered beneficiaries
under chapter 55 of title 10, United States Code, who have
limited access to military medical treatment facilities and
are ineligible for the Civilian Health and Medical Program
of the Uniformed Services under section 1086(d)(1) of such
title. The alternatives that the Secretary shall consider
to improve access for such covered beneficiaries shall
include--
(1) whether CHAMPUS should serve as a second payer for
covered beneficiaries who are entitled to hospital insurance
benefits under part A of title XVIII of the Social Security
Act (42 U.S.C. 1395c et seq.); and
(2) whether such covered beneficiaries should be offered
enrollment in the Federal Employees Health Benefits program
under chapter 89 of title 5, United States Code.

SEC. 747. REPORT ON EFFECT OF CLOSURE OF FITZSIMONS ARMY
MEDICAL CENTER, COLORADO, ON PROVISION OF CARE
TO MILITARY PERSONNEL, RETIRED MILITARY
PERSONNEL, AND THEIR DEPENDENTS.

(a) Effect of Closure on Members Experiencing Health
Difficulties Associated With Persian Gulf Syndrome.--Not
later than 90 days after the date of the enactment of this
Act, the Secretary of Defense shall submit to Congress a
report that--
(1) assesses the effects of the closure of Fitzsimons Army
Medical Center, Colorado, on the capability of the Department
of Defense to provide appropriate and adequate health care to
members and former members of the Armed Forces who suffer
from undiagnosed illnesses (or combination of illnesses) as a
result of service in the Armed Forces in the Southwest Asia
theater of operations during the Persian Gulf conflict; and
(2) describes the plans of the Secretary of Defense and the
Secretary of the Army to ensure that adequate and appropriate
health care is provided to such members for such illnesses
(or combination of illnesses).
(b) Effect of Closure on Other Covered Beneficiaries.--The
report required by subsection (a) shall also include--
(1) an assessment of the effects of the closure of
Fitzsimons Army Medical Center on the capability of the
Department of Defense to provide appropriate and adequate
health care to the dependents of members and former members
of the Armed Forces and retired members and their dependents
who currently obtain care at the medical center; and
(2) a description of the plans of the Secretary of Defense
and the Secretary of the Army to ensure that adequate and
appropriate health care is provided to such persons, as
called for in the recommendations of the Secretary of Defense
for the closure of Fitzsimons Army Medical Center.

SEC. 748. SENSE OF CONGRESS ON CONTINUITY OF HEALTH CARE
SERVICES FOR COVERED BENEFICIARIES ADVERSELY
AFFECTED BY CLOSURES OF MILITARY MEDICAL
TREATMENT FACILITIES.

(a) Findings.--Congress finds the following:
(1) Military installations selected for closure in the 1991
and 1993 rounds of the base closure process will soon close.
(2) Additional military installations have been selected
for closure in the 1995 round of the base closure process.
(3) Some of the military installations selected for closure
include military medical treatment facilities.
(4) As a result of these base closures, tens of thousands
of covered beneficiaries under chapter 55 of title 10, United
States Code, who reside in the vicinity of such installations
will be left without immediate access to military medical
treatment facilities.
(b) Sense of Congress.--In light of the findings specified
in subsection (a), it is the sense of Congress that the
Secretary of Defense should take all appropriate steps
necessary to ensure the continuation of medical and
pharmaceutical benefits for covered beneficiaries adversely
affected by the closure of military installations.

SEC. 749. STATE RECOGNITION OF MILITARY ADVANCE MEDICAL
DIRECTIVES.

(a) Requirement for Recognition by States.--(1) Chapter 53
of title 10, United States Code, is amended by inserting
after section 1044b the following new section:

``Sec. 1044c. Advance medical directives of members and
dependents: requirement for recognition by States

``(a) Instruments To Be Given Legal Effect Without Regard
to State Law.--An advance medical directive executed by a
person eligible for legal assistance--
``(1) is exempt from any requirement of form, substance,
formality, or recording that is provided for advance medical
directives under the laws of a State; and
``(2) shall be given the same legal effect as an advance
medical directive prepared and executed in accordance with
the laws of the State concerned.
``(b) Advance Medical Directives.--For purposes of this
section, an advance medical directive is any written
declaration that--
``(1) sets forth directions regarding the provision,
withdrawal, or withholding of life-prolonging procedures,
including hydration and sustenance, for the declarant
whenever the declarant has a terminal physical condition or
is in a persistent vegetative state; or
``(2) authorizes another person to make health care
decisions for the declarant, under circumstances stated in
the declaration, whenever the declarant is incapable of
making informed health care decisions.
``(c) Statement To Be Included.--(1) Under regulations
prescribed by the Secretary concerned, an advance medical
directive prepared by an attorney authorized to provide legal
assistance shall contain a statement that sets forth the
provisions of subsection (a).
``(2) Paragraph (1) shall not be construed to make
inapplicable the provisions of subsection (a) to an advance
medical directive that does not include a statement described
in that paragraph.
``(d) States Not Recognizing Advance Medical Directives.--
Subsection (a) does not make an advance medical directive
enforceable in a State that does not otherwise recognize and
enforce advance medical directives under the laws of the
State.
``(e) Definitions.--In this section:
``(1) The term `State' includes the District of Columbia,
the Commonwealth of Puerto Rico, and a possession of the
United States.
``(2) The term `person eligible for legal assistance' means
a person who is eligible for legal assistance under section
1044 of this title.
``(3) The term `legal assistance' means legal services
authorized under section 1044 of this title.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
1044b the following:
``1044c. Advance medical directives of members and dependents:
requirement for recognition by States.''.

(b) Effective Date.--Section 1044c of title 10, United
States Code, shall take effect on the date of the enactment
of this Act and shall apply to advance medical directives
referred to in that section that are executed before, on, or
after that date.
TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
MATTERS
Subtitle A--Acquisition Reform

SEC. 801. INAPPLICABILITY OF LIMITATION ON EXPENDITURE OF
APPROPRIATIONS TO CONTRACTS AT OR BELOW
SIMPLIFIED ACQUISITION THRESHOLD.

Section 2207 of title 10, United States Code, is amended--
(1) by inserting ``(a)'' before ``Money appropriated''; and
(2) by adding at the end the following new subsection:
``(b) This section does not apply to a contract that is for
an amount not greater than the simplified acquisition
threshold (as defined in section 4(11) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(11))).''.

[[Page H412]]

SEC. 802. AUTHORITY TO DELEGATE CONTRACTING AUTHORITY.

(a) Repeal of Duplicative Authority and Restriction.--
Section 2356 of title 10, United States Code, is repealed.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 139 of title 10, United States Code, is
amended by striking out the item relating to section 2356.

SEC. 803. CONTROL IN PROCUREMENTS OF CRITICAL AIRCRAFT AND
SHIP SPARE PARTS.

(a) Repeal.--Section 2383 of title 10, United States Code,
is repealed.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 141 of such title is amended by striking
out the item relating to section 2383.

SEC. 804. FEES FOR CERTAIN TESTING SERVICES.

Section 2539b(c) of title 10, United States Code, is
amended by inserting ``and indirect'' after ``recoup the
direct'' in the second sentence.

SEC. 805. COORDINATION AND COMMUNICATION OF DEFENSE RESEARCH
ACTIVITIES.

Section 2364 of title 10, United States Code, is amended--
(1) in subsection (b)(5), by striking out ``milestone O,
milestone I, and milestone II'' and inserting in lieu thereof
``acquisition program''; and
(2) in subsection (c), by striking out paragraphs (2), (3),
and (4) and inserting in lieu thereof the following:
``(2) The term `acquisition program decision' has the
meaning prescribed by the Secretary of Defense in
regulations.''.

SEC. 806. ADDITION OF CERTAIN ITEMS TO DOMESTIC SOURCE
LIMITATION.

(a) Limitation.--(1) Paragraph (3) of section 2534(a) of
title 10, United States Code, is amended to read as follows:
``(3) Components for naval vessels.--(A) The following
components:
``(i) Air circuit breakers.
``(ii) Welded shipboard anchor and mooring chain with a
diameter of four inches or less.
``(iii) Vessel propellers with a diameter of six feet or
more.
``(B) The following components of vessels, to the extent
they are unique to marine applications: gyrocompasses,
electronic navigation chart systems, steering controls,
pumps, propulsion and machinery control systems, and totally
enclosed lifeboats.''.
(2) Subsection (b) of section 2534 of such title is amended
by adding at the end the following:
``(3) Manufacturer of vessel propellers.--In the case of a
procurement of vessel propellers referred to in subsection
(a)(3)(A)(ii), the manufacturer of the propellers meets the
requirements of this subsection only if--
``(A) the manufacturer meets the requirements set forth in
paragraph (1); and
``(B) all castings incorporated into such propellers are
poured and finished in the United States.''.
(3) Paragraph (1) of section 2534(c) of such title is
amended to read as follows:
``(1) Components for naval vessels.--Subsection (a) does
not apply to a procurement of spare or repair parts needed to
support components for naval vessels produced or manufactured
outside the United States.''.
(4) Section 2534 of such title is amended by adding at the
end the following new subsection:
``(h) Implementation of Naval Vessel Component
Limitation.--In implementing subsection (a)(3)(B), the
Secretary of Defense--
``(1) may not use contract clauses or certifications; and
``(2) shall use management and oversight techniques that
achieve the objective of the subsection without imposing a
significant management burden on the Government or the
contractor involved.''.
(5) Subsection (a)(3)(B) of section 2534 of title 10,
United States Code, as amended by paragraph (1), shall apply
only to contracts entered into after March 31, 1996.
(b) Extension of Limitation Relating to Ball Bearings and
Roller Bearings.--Section 2534(c)(3) of such title is amended
by striking out ``October 1, 1995'' and inserting in lieu
thereof ``October 1, 2000''.
(c) Termination of Vessel Propeller Limitation.--Section
2534(c) of such title is amended by adding at the end the
following new paragraph:
``(4) Vessel propellers.--Subsection (a)(3)(A)(iii) and
this paragraph shall cease to be effective on the date
occurring two years after the date of the enactment of the
National Defense Authorization Act for Fiscal Year 1996.''.
(d) Inapplicability of Simplified Acquisition Limitation to
Contracts for Ball Bearings and Roller Bearings.--Section
2534(g) of title 10, United States Code, is amended--
(1) by inserting ``(1)'' before ``This section''; and
(2) by adding at the end the following new paragraph:
``(2) Paragraph (1) does not apply to contracts for items
described in subsection (a)(5) (relating to ball bearings and
roller bearings), notwithstanding section 33 of the Office of
Federal Procurement Policy Act (41 U.S.C. 429).''.

SEC. 807. ENCOURAGEMENT OF USE OF LEASING AUTHORITY.

(a) In General.--(1) Section 2401a of title 10, United
States Code, is amended--
(A) by inserting before ``The Secretary of Defense'' the
following subsection heading: ``(b) Limitation on Contracts
With Terms of 18 Months or More.--'';
(B) by inserting after the section heading the following:
``(a) Leasing of Commercial Vehicles and Equipment.--The
Secretary of Defense may use leasing in the acquisition of
commercial vehicles and equipment whenever the Secretary
determines that leasing of such vehicles is practicable and
efficient.''; and
(C) by amending the section heading to read as follows:

``Sec. 2401a. Lease of vehicles, equipment, vessels, and
aircraft''.

(2) The item relating to section 2401a in the table of
sections at the beginning of chapter 141 of such title is
amended to read as follows:

``2401a. Lease of vehicles, equipment, vessels, and aircraft.''.

(b) Report.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of Defense shall submit
to the Committee on Armed Services of the Senate and the
Committee on National Security of the House of
Representatives a report setting forth changes in legislation
that would be required to facilitate the use of leasing in
the acquisition of equipment by the Department of Defense.
(c) Pilot Program.--(1) The Secretary of the Army may
conduct a pilot program for leasing commercial utility cargo
vehicles in accordance with this subsection.
(2) Under the pilot program--
(A) the Secretary may trade existing commercial utility
cargo vehicles of the Army for credit against the costs of
leasing new replacement commercial utility cargo vehicles for
the Army;
(B) the quantities and trade-in value of commercial utility
cargo vehicles to be traded in shall be subject to
negotiation between the Secretary and the lessors of the new
replacement commercial utility cargo vehicles;
(C) the lease agreement for a new commercial utility cargo
vehicle may be executed with or without an option to purchase
at the end of the lease period;
(D) the lease period for a new commercial utility cargo
vehicle may not exceed the warranty period for the vehicle;
and
(E) up to 40 percent of the validated requirement for
commercial utility cargo vehicles may be satisfied by leasing
such vehicles, except that one or more options for satisfying
the remainder of the validated requirement may be provided
for and exercised (subject to the requirements of paragraph
(6)).
(3) In awarding contracts under the pilot program, the
Secretary shall comply with section 2304 of title 10, United
States Code.
(4) The pilot program may not be commenced until--
(A) the Secretary submits to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives a report that contains the
plans of the Secretary for implementing the program and that
sets forth in detail the savings in operating and support
costs expected to be derived from retiring older commercial
utility cargo vehicles, as compared to the expected costs of
leasing newer commercial utility cargo vehicles; and
(B) a period of 30 calendar days has elapsed after
submission of such report.
(5) Not later than one year after the date on which the
first lease under the pilot program is entered into, the
Secretary of the Army shall submit to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives a report on the status of the
pilot program. Such report shall be based on at least six
months of experience in operating the pilot program.
(6) The Secretary may exercise an option provided for under
paragraph (2) only after a period of 60 days has elapsed
after the submission of the report.
(7) No lease of commercial utility cargo vehicles may be
entered into under the pilot program after September 30,
2000.

SEC. 808. COST REIMBURSEMENT RULES FOR INDIRECT COSTS
ATTRIBUTABLE TO PRIVATE SECTOR WORK OF DEFENSE
CONTRACTORS.

(a) Defense Capability Preservation Agreement.--The
Secretary of Defense may enter into an agreement, to be known
as a ``defense capability preservation agreement'', with a
defense contractor under which the cost reimbursement rules
described in subsection (b) shall be applied. Such an
agreement may be entered into in any case in which the
Secretary determines that the application of such cost
reimbursement rules would facilitate the achievement of the
policy objectives set forth in section 2501(b) of title 10,
United States Code.
(b) Cost Reimbursement Rules.--(1) The cost reimbursement
rules applicable under an agreement entered into under
subsection (a) are as follows:
(A) The Department of Defense shall, in determining the
reimbursement due a contractor for its indirect costs of
performing a defense contract, allow the contractor to
allocate indirect costs to its private sector work only to
the extent of the contractor's allocable indirect private
sector costs, subject to subparagraph (C).
(B) For purposes of subparagraph (A), the allocable
indirect private sector costs of a contractor are those costs
of the contractor that are equal to the sum of--
(i) the incremental indirect costs attributable to such
work; and

[[Page H413]]

(ii) the amount by which the revenue attributable to such
private sector work exceeds the sum of--
(I) the direct costs attributable to such private sector
work; and
(II) the incremental indirect costs attributable to such
private sector work.
(C) The total amount of allocable indirect private sector
costs for a contract in any year of the agreement may not
exceed the amount of indirect costs that a contractor would
have allocated to its private sector work during that year in
accordance with the contractor's established accounting
practices.
(2) The cost reimbursement rules set forth in paragraph (1)
may be modified by the Secretary of Defense if the Secretary
of Defense determines that modifications are appropriate to
the particular situation to facilitate achievement of the
policy set forth in section 2501(b) of title 10, United
States Code.
(c) Implementation.--Not later than 90 days after the date
of the enactment of this Act, the Secretary of Defense shall
establish application procedures and procedures for
expeditious consideration of defense capability preservation
agreements as authorized by this section.
(d) Contracts Covered.--An agreement entered into with a
contractor under subsection (a) shall apply to each
Department of Defense contract with the contractor in effect
on the date on which the agreement is entered into and each
Department of Defense contract that is awarded to the
contractor during the term of the agreement.
(e) Reports.--Not later than one year after the date of the
enactment of this Act, the Secretary of Defense shall submit
to the congressional defense committees a report setting
forth--
(1) the number of applications received and the number of
applications approved for defense capability preservation
agreements; and
(2) any changes to the authority in this section that the
Secretary recommends to further facilitate the policy set
forth in section 2501(b) of title 10, United States Code.

SEC. 809. SUBCONTRACTS FOR OCEAN TRANSPORTATION SERVICES.

Notwithstanding any other provision of law, neither section
901(b) of the Merchant Marine Act, 1936 (46 U.S.C. 1241(b))
nor section 2631 of title 10, United States Code, shall be
included before May 1, 1996, on any list promulgated under
section 34(b) of the Office of Federal Procurement Policy Act
(41 U.S.C. 430(b)).

SEC. 810. PROMPT RESOLUTION OF AUDIT RECOMMENDATIONS.

Section 6009 of the Federal Acquisition Streamlining Act of
1994 (Public Law 103-355; 108 Stat. 3367) is amended to read
as follows:

``SEC. 6009. PROMPT MANAGEMENT DECISIONS AND IMPLEMENTATION
OF AUDIT RECOMMENDATIONS.

``(a) Management Decisions.--(1) The head of a Federal
agency shall make management decisions on all findings and
recommendations set forth in an audit report of the inspector
general of the agency within a maximum of six months after
the issuance of the report.
``(2) The head of a Federal agency shall make management
decisions on all findings and recommendations set forth in an
audit report of any auditor from outside the Federal
Government within a maximum of six months after the date on
which the head of the agency receives the report.
``(b) Completion of Final Action.--The head of a Federal
agency shall complete final action on each management
decision required with regard to a recommendation in an
inspector general's report under subsection (a)(1) within 12
months after the date of the inspector general's report. If
the head of the agency fails to complete final action with
regard to a management decision within the 12-month period,
the inspector general concerned shall identify the matter in
each of the inspector general's semiannual reports pursuant
to section 5(a)(3) of the Inspector General Act of 1978 (5
U.S.C. App.) until final action on the management decision is
completed.''.

SEC. 811. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE
SUBCONTRACTING PLANS.

(a) Revision of Authority.--Subsection (a) of section 834
of National Defense Authorization Act for Fiscal Years 1990
and 1991 (15 U.S.C. 637 note) is amended by striking out
paragraph (1) and inserting in lieu thereof the following:
``(1) The Secretary of Defense shall establish a test
program under which contracting activities in the military
departments and the Defense Agencies are authorized to
undertake one or more demonstration projects to determine
whether the negotiation and administration of comprehensive
subcontracting plans will reduce administrative burdens on
contractors while enhancing opportunities provided under
Department of Defense contracts for small business concerns
and small business concerns owned and controlled by socially
and economically disadvantaged individuals. In selecting the
contracting activities to undertake demonstration projects,
the Secretary shall take such action as is necessary to
ensure that a broad range of the supplies and services
acquired by the Department of Defense are included in the
test program.''.
(b) Covered Contractors.--Subsection (b) of such section is
amended by striking out paragraph (3) and inserting in lieu
thereof the following:
``(3) A Department of Defense contractor referred to in
paragraph (1) is, with respect to a comprehensive
subcontracting plan negotiated in any fiscal year, a business
concern that, during the immediately preceding fiscal year,
furnished the Department of Defense with supplies or
services (including professional services, research and
development services, and construction services) pursuant
to at least three Department of Defense contracts having
an aggregate value of at least $5,000,000.''.
(c) Technical Amendments.--Such section is amended--
(1) by striking out subsection (g); and
(2) by redesignating subsection (h) as subsection (g).

SEC. 812. PROCUREMENT OF ITEMS FOR EXPERIMENTAL OR TEST
PURPOSES.

Section 2373(b) of title 10, United States Code, is amended
by inserting ``only'' after ``applies'' in the second
sentence.

SEC. 813. USE OF FUNDS FOR ACQUISITION OF DESIGNS, PROCESSES,
TECHNICAL DATA, AND COMPUTER SOFTWARE.

Section 2386(3) of title 10, United States Code, is amended
to read as follows:
``(3) Design and process data, technical data, and computer
software.''.

SEC. 814. INDEPENDENT COST ESTIMATES FOR MAJOR DEFENSE
ACQUISITION PROGRAMS.

Section 2434(b)(1)(A) of title 10, United States Code, is
amended to read as follows:
``(A) be prepared--
``(i) by an office or other entity that is not under the
supervision, direction, or control of the military
department, Defense Agency, or other component of the
Department of Defense that is directly responsible for
carrying out the development or acquisition of the program;
or
``(ii) if the decision authority for the program has been
delegated to an official of a military department, Defense
Agency, or other component of the Department of Defense, by
an office or other entity that is not directly responsible
for carrying out the development or acquisition of the
program; and''.

SEC. 815. CONSTRUCTION, REPAIR, ALTERATION, FURNISHING, AND
EQUIPPING OF NAVAL VESSELS.

(a) Applicability of Certain Law.--Chapter 633 of title 10,
United States Code, is amended by inserting after section
7297 the following:

``Sec. 7299. Contracts: applicability of Walsh-Healey Act

``Each contract for the construction, alteration,
furnishing, or equipping of a naval vessel is subject to the
Walsh-Healey Act (41 U.S.C. 35 et seq.) unless the President
determines that this requirement is not in the interest of
national defense.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 7297 the following:

``7299. Contracts: applicability of Walsh-Healey Act.''.
Subtitle B--Other Matters

SEC. 821. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

(a) Funding.--Of the amount authorized to be appropriated
under section 301(5), $12,000,000 shall be available for
carrying out the provisions of chapter 142 of title 10,
United States Code.
(b) Specific Programs.--Of the amounts made available
pursuant to subsection (a), $600,000 shall be available for
fiscal year 1996 for the purpose of carrying out programs
sponsored by eligible entities referred to in subparagraph
(D) of section 2411(1) of title 10, United States Code, that
provide procurement technical assistance in distressed areas
referred to in subparagraph (B) of section 2411(2) of such
title. If there is an insufficient number of satisfactory
proposals for cooperative agreements in such distressed areas
to allow effective use of the funds made available in
accordance with this subsection in such areas, the funds
shall be allocated among the Defense Contract Administration
Services regions in accordance with section 2415 of such
title.

SEC. 822. DEFENSE FACILITY-WIDE PILOT PROGRAM.

(a) Authority To Conduct Defense Facility-Wide Pilot
Program.--The Secretary of Defense may conduct a pilot
program, to be known as the ``defense facility-wide pilot
program'', for the purpose of determining the potential for
increasing the efficiency and effectiveness of the
acquisition process in facilities by using commercial
practices on a facility-wide basis.
(b) Designation of Participating Facilities.--(1) Subject
to paragraph (2), the Secretary may designate up to two
facilities as participants in the defense facility-wide pilot
program.
(2) The Secretary may designate for participation in the
pilot program only those facilities that are authorized to be
so designated in a law authorizing appropriations for
national defense programs that is enacted after the date of
the enactment of this Act.
(c) Scope of Program.--At a facility designated as a
participant in the pilot program, the pilot program shall
consist of the following:
(1) All contracts and subcontracts for defense supplies and
services that are performed at the facility.
(2) All Department of Defense contracts and all
subcontracts under Department of Defense contracts performed
elsewhere that

[[Page H414]]
the Secretary determines are directly and substantially related to the
production of defense supplies and services at the facility
and are necessary for the pilot program.
(d) Criteria for Designation of Participating Facilities.--
The Secretary shall establish criteria for selecting a
facility for designation as a participant in the pilot
program. In developing such criteria, the Secretary shall
consider the following:
(1) The number of existing and anticipated contracts and
subcontracts performed at the facility--
(A) for which contractors are required to provide certified
cost or pricing data pursuant to section 2306a of title 10,
United States Code; and
(B) which are administered with the application of cost
accounting standards under section 26(f) of the Office of
Federal Procurement Policy Act (41 U.S.C. 422(f)).
(2) The relationship of the facility to other organizations
and facilities performing under contracts with the Department
of Defense and subcontracts under such contracts.
(3) The impact that the participation of the facility under
the pilot program would have on competing domestic
manufacturers.
(4) Such other factors as the Secretary considers
appropriate.
(e) Notification.--(1) The Secretary shall transmit to the
Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives a
written notification of each facility proposed to be
designated by the Secretary for participation in the pilot
program.
(2) The Secretary shall include in the notification
regarding a facility designated for participation in the
program a management plan addressing the following:
(A) The proposed treatment of research and development
contracts or subcontracts to be performed at the facility
during the pilot program.
(B) The proposed treatment of the cost impact of the use of
commercial practices on the award and administration of
contracts and subcontracts performed at the facility.
(C) The proposed method for reimbursing the contractor for
existing and new contracts.
(D) The proposed method for measuring the performance of
the facility for meeting the management goals of the
Secretary.
(E) Estimates of the annual amount and the total amount of
the contracts and subcontracts covered under the pilot
program.
(3)(A) The Secretary shall ensure that the management plan
for a facility provides for attainment of the following
objectives:
(i) A significant reduction of the cost to the Government
for programs carried out at the facility.
(ii) A reduction of the schedule associated with programs
carried out at the facility.
(iii) An increased use of commercial practices and
procedures for programs carried out at the facility.
(iv) Protection of a domestic manufacturer competing for
contracts at such facility from being placed at a significant
competitive disadvantage by the participation of the facility
in the pilot program.
(B) The management plan for a facility shall also require
that all or substantially all of the contracts to be awarded
and performed at the facility after the designation of that
facility under subsection (b), and all or substantially all
of the subcontracts to be awarded under those contracts and
performed at the facility after the designation, be--
(i) for the production of supplies or services on a firm-
fixed price basis;
(ii) awarded without requiring the contractors or
subcontractors to provide certified cost or pricing data
pursuant to section 2306a of title 10, United States Code;
and
(iii) awarded and administered without the application of
cost accounting standards under section 26(f) of the Office
of Federal Procurement Policy Act (41 U.S.C. 422(f)).
(f) Exemption From Certain Requirements.--In the case of a
contract or subcontract that is to be performed at a facility
designated for participation in the defense facility-wide
pilot program and that is subject to section 2306a of title
10, United States Code, or section 26(f) of the Office of
Federal Procurement Policy Act (41 U.S.C. 422(f)), the
Secretary of Defense may exempt such contract or subcontract
from the requirement to obtain certified cost or pricing data
under such section 2306a or the requirement to apply
mandatory cost accounting standards under such section 26(f)
if the Secretary determines that the contract or
subcontract--
(1) is within the scope of the pilot program (as described
in subsection (c)); and
(2) is fairly and reasonably priced based on information
other than certified cost and pricing data.
(g) Special Authority.--The authority provided under
subsection (a) includes authority for the Secretary of
Defense--
(1) to apply any amendment or repeal of a provision of law
made in this Act to the pilot program before the effective
date of such amendment or repeal; and
(2) to apply to a procurement of items other than
commercial items under such program--
(A) the authority provided in section 34 of the Office of
Federal Procurement Policy Act (41 U.S.C. 430) to waive a
provision of law in the case of commercial items, and
(B) any exception applicable under this Act or the Federal
Acquisition Streamlining Act of 1994 (Public Law 103-355) (or
an amendment made by a provision of either Act) in the case
of commercial items,
before the effective date of such provision (or amendment) to
the extent that the Secretary determines necessary to test
the application of such waiver or exception to procurements
of items other than commercial items.
(h) Applicability.--(1) Subsections (f) and (g) apply to
the following contracts, if such contracts are within the
scope of the pilot program at a facility designated for the
pilot program under subsection (b):
(A) A contract that is awarded or modified during the
period described in paragraph (2).
(B) A contract that is awarded before the beginning of such
period, that is to be performed (or may be performed), in
whole or in part, during such period, and that may be
modified as appropriate at no cost to the Government.
(2) The period referred to in paragraph (1), with respect
to a facility designated under subsection (b), is the period
that--
(A) begins 45 days after the date of the enactment of the
Act authorizing the designation of that facility in
accordance with paragraph (2) of such subsection; and
(B) ends on September 30, 2000.
(i) Commercial Practices Encouraged.--With respect to
contracts and subcontracts within the scope of the defense
facility-wide pilot program, the Secretary of Defense may, to
the extent the Secretary determines appropriate and in
accordance with applicable law, adopt commercial practices in
the administration of contracts and subcontracts. Such
commercial practices may include the following:
(1) Substitution of commercial oversight and inspection
procedures for Government audit and access to records.
(2) Incorporation of commercial oversight, inspection, and
acceptance procedures.
(3) Use of alternative dispute resolution techniques
(including arbitration).
(4) Elimination of contract provisions authorizing the
Government to make unilateral changes to contracts.

SEC. 823. TREATMENT OF DEPARTMENT OF DEFENSE CABLE TELEVISION
FRANCHISE AGREEMENTS.

Not later than 180 days after the date of the enactment of
this Act, the chief judge of the United States Court of
Federal Claims shall transmit to Congress a report containing
an advisory opinion on the following two questions:
(1) Is it within the power of the executive branch to treat
cable television franchise agreements for the construction,
installation, or capital improvement of cable television
systems at military installations of the Department of
Defense as contracts under part 49 of the Federal Acquisition
Regulation without violating title VI of the Communications
Act of 1934 (47 U.S.C. 521 et seq.)?
(2) If the answer to the question in paragraph (1) is in
the affirmative, is the executive branch required by law to
so treat such franchise agreements?

SEC. 824. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

Section 831(j)(1) of the National Defense Authorization Act
for Fiscal Year 1991 (10 U.S.C. 2301 note) is amended by
striking out ``1995'' and inserting in lieu thereof ``1996''.
TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT
Subtitle A--General Matters

SEC. 901. ORGANIZATION OF THE OFFICE OF THE SECRETARY OF
DEFENSE.

(a) Findings.--Congress makes the following findings:
(1) The statutory provisions that as of the date of the
enactment of this Act govern the organization of the Office
of the Secretary of Defense have evolved from enactment of a
number of executive branch legislative proposals and
congressional initiatives over a period of years.
(2) The May 1995 report of the congressionally mandated
Commission on Roles and Missions of the Armed Forces included
a number of recommendations relating to the Office of the
Secretary of Defense.
(3) The Secretary of Defense has decided to create a
special Department task force and to conduct other reviews to
review many of the Commission's recommendations.
(4) The Secretary of Defense has decided to institute a 5
percent per year reduction of civilian personnel assigned to
the Office of the Secretary of Defense, including the
Washington Headquarters Service and the Defense Support
Activities, for the period from fiscal year 1996 through
fiscal year 2001.
(5) Over the ten-year period from 1986 through 1995,
defense spending in real dollars has been reduced by 34
percent and military end-strengths have been reduced by 28
percent. During the same period, the number of civilian
employees of the Office of the Secretary of Defense has
increased by 22 percent.
(6) To achieve greater efficiency and to revalidate the
role and mission of the Office of the Secretary of Defense, a
comprehensive review of the organizations and functions of
that Office and of the personnel needed to carry out those
functions is required.
(b) Review.--The Secretary of Defense shall conduct a
further review of the organizations and functions of the
Office of the Secretary of Defense, including the Washington
Headquarters Service and the Defense Support Activities, and
the personnel needed to carry out those functions. The review
shall include the following:

[[Page H415]]

(1) An assessment of the appropriate functions of the
Office and whether the Office of the Secretary of Defense or
some of its component parts should be organized along mission
lines.
(2) An assessment of the adequacy of the present
organizational structure to efficiently and effectively
support the Secretary in carrying out his responsibilities in
a manner that ensures civilian authority in the Department of
Defense.
(3) An assessment of the advantages and disadvantages of
the use of political appointees to fill the positions of the
various Under Secretaries of Defense, Assistant Secretaries
of Defense, and Deputy Under Secretaries of Defense.
(4) An assessment of the extent of unnecessary duplication
of functions between the Office of the Secretary of Defense
and the Joint Staff.
(5) An assessment of the extent of unnecessary duplication
of functions between the Office of the Secretary of Defense
and the military departments.
(6) An assessment of the appropriate number of positions
referred to in paragraph (3) and of Deputy Assistant
Secretaries of Defense.
(7) An assessment of whether some or any of the functions
currently performed by the Office of Humanitarian and Refugee
Affairs are more properly or effectively performed by another
agency of Government or elsewhere within the Department of
Defense.
(8) An assessment of the efficacy of the Joint Requirements
Oversight Council and whether it is advisable or necessary to
establish a statutory charter for this organization.
(9) An assessment of any benefits or efficiencies derived
from decentralizing certain functions currently performed by
the Office of the Secretary of Defense.
(10) An assessment of the appropriate size, number, and
functional responsibilities of the Defense Agencies and other
Department of Defense support organizations.
(c) Report.--Not later than March 1, 1996, the Secretary of
Defense shall submit to the congressional defense committees
a report containing --
(1) his findings and conclusions resulting from the review
under subsection (b); and
(2) a plan for implementing resulting recommendations,
including proposals for legislation (with supporting
rationale) that would be required as a result of the review.
(d) Personnel Reduction.--(1) Effective October 1, 1999,
the number of OSD personnel may not exceed 75 percent of the
number of OSD personnel as of October 1, 1994.
(2) For purposes of this subsection, the term ``OSD
personnel'' means military and civilian personnel of the
Department of Defense who are assigned to, or employed in,
functions in the Office of the Secretary of Defense
(including Direct Support Activities of that Office and the
Washington Headquarters Services of the Department of
Defense).
(3) In carrying out reductions in the number of personnel
assigned to, or employed in, the Office of the Department of
Defense in order to comply with paragraph (1), the Secretary
may not reassign functions solely in order to evade the
requirement contained in that paragraph.
(4) If the Secretary of Defense determines, and certifies
to Congress, that the limitation in paragraph (1) would
adversely affect United States national security, the
limitation under paragraph (1) shall be applied by
substituting ``80 percent'' for ``75 percent''.

SEC. 902. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF
DEFENSE POSITIONS.

(a) Reduction.--Section 138(a) of title 10, United States
Code, is amended by striking out ``eleven'' and inserting in
lieu thereof ``ten''.
(b) Conforming Amendment.--Section 5315 of title 5, United
States Code, is amended by striking out ``(11)'' after
``Assistant Secretaries of Defense'' and inserting in lieu
thereof ``(10)''.

SEC. 903. DEFERRED REPEAL OF VARIOUS STATUTORY POSITIONS AND
OFFICES IN OFFICE OF THE SECRETARY OF DEFENSE.

(a) Effective Date.--The amendments made by this section
shall take effect on January 31, 1997.
(b) Termination of Specification by Law of ASD Positions.--
Subsection (b) of section 138 of title 10, United States
Code, is amended to read as follows:
``(b) The Assistant Secretaries shall perform such duties
and exercise such powers as the Secretary of Defense may
prescribe.''.
(c) Repeal of Certain OSD Presidential Appointment
Positions.--The following sections of chapter 4 of such title
are repealed:
(1) Section 133a, relating to the Deputy Under Secretary of
Defense for Acquisition and Technology.
(2) Section 134a, relating to the Deputy Under Secretary of
Defense for Policy.
(3) Section 134a, relating to the Director of Defense
Research and Engineering.
(4) Section 142, relating to the Assistant to the Secretary
of Defense for Nuclear and Chemical and Biological Defense
Programs.
(d) Director of Military Relocation Assistance Programs.--
Section 1056 of such title is amended by striking out
subsection (d).
(e) Conforming Amendments Relating to Repeal of Various OSD
Positions.--Chapter 4 of such title is further amended--
(1) in section 131(b)--
(A) by striking out paragraphs (6) and (8); and
(B) by redesignating paragraphs (7), (9), (10), and (11),
as paragraphs (6), (7), (8), and (9), respectively;
(2) in section 138(d), by striking out ``the Under
Secretaries of Defense, and the Director of Defense Research
and Engineering'' and inserting in lieu thereof ``and the
Under Secretaries of Defense''; and
(3) in the table of sections at the beginning of the
chapter, by striking out the items relating to sections 133a,
134a, 137, 139, and 142.
(f) Conforming Amendments Relating to Repeal of
Specification of ASD Positions.--
(1) Section 176(a)(3) of title 10, United States Code, is
amended--
(A) by striking out ``Assistant Secretary of Defense for
Health Affairs'' and inserting in lieu thereof ``official in
the Department of Defense with principal responsibility for
health affairs''; and
(B) by striking out ``Chief Medical Director of the
Department of Veterans Affairs'' and inserting in lieu
thereof ``Under Secretary for Health of the Department of
Veterans Affairs''.
(2) Section 1216(d) of such title is amended by striking
out ``Assistant Secretary of Defense for Health Affairs'' and
inserting in lieu thereof ``official in the Department of
Defense with principal responsibility for health affairs''.
(3) Section 1587(d) of such title is amended by striking
out ``Assistant Secretary of Defense for Manpower and
Logistics'' and inserting in lieu thereof ``official in the
Department of Defense with principal responsibility for
personnel and readiness''.
(4) The text of section 10201 of such title is amended to
read as follows:
``The official in the Department of Defense with
responsibility for overall supervision of reserve component
affairs of the Department of Defense is the official
designated by the Secretary of Defense to have that
responsibility.''.
(5) Section 1211(b)(2) of the National Defense
Authorization Act for Fiscal Years 1988 and 1989 (P.L. 100-
180; 101 Stat 1155; 10 U.S.C. 167 note) is amended by
striking out ``the Assistant Secretary of Defense for Special
Operations and Low Intensity Conflict'' and inserting in lieu
thereof ``the official designated by the Secretary of Defense
to have principal responsibility for matters relating to
special operations and low intensity conflict''.
(g) Repeal of Minimum Number of Senior Staff for Specified
Assistant Secretary of Defense.--Section 355 of the National
Defense Authorization Act for Fiscal Year 1991 (Public Law
101-510; 104 Stat. 1540) is repealed.

SEC. 904. REDESIGNATION OF THE POSITION OF ASSISTANT TO THE
SECRETARY OF DEFENSE FOR ATOMIC ENERGY.

(a) In General.--(1) Section 142 of title 10, United States
Code, is amended--
(A) by striking out the section heading and inserting in
lieu thereof the following:

``Sec. 142. Assistant to the Secretary of Defense for Nuclear
and Chemical and Biological Defense Programs'';

(B) in subsection (a), by striking out ``Assistant to the
Secretary of Defense for Atomic Energy'' and inserting in
lieu thereof ``Assistant to the Secretary of Defense for
Nuclear and Chemical and Biological Defense Programs''; and
(C) by striking out subsection (b) and inserting in lieu
thereof the following:
``(b) The Assistant to the Secretary shall--
``(1) advise the Secretary of Defense on nuclear energy,
nuclear weapons, and chemical and biological defense;
``(2) serve as the Staff Director of the Nuclear Weapons
Council established by section 179 of this title; and
``(3) perform such additional duties as the Secretary may
prescribe.''.
(2) The item relating to such section in the table of
sections at the beginning of chapter 4 of such title is
amended to read as follows:

``142. Assistant to the Secretary of Defense for Nuclear and Chemical
and Biological Defense Programs.''.

(b) Conforming Amendments.--(1) Section 179(c)(2) of title
10, United States Code, is amended by striking out ``The
Assistant to the Secretary of Defense for Atomic Energy'' and
inserting in lieu thereof ``The Assistant to the Secretary of
Defense for Nuclear and Chemical and Biological Defense
Programs''.
(2) Section 5316 of title 5, United States Code, is amended
by striking out ``The Assistant to the Secretary of Defense
for Atomic Energy, Department of Defense.'' and inserting in
lieu thereof the following:
``Assistant to the Secretary of Defense for Nuclear and
Chemical and Biological Defense Programs, Department of
Defense.''.

SEC. 905. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

(a) In General.--(1) Chapter 7 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 181. Joint Requirements Oversight Council

``(a) Establishment.--The Secretary of Defense shall
establish a Joint Requirements Oversight Council in the
Department of Defense.
``(b) Mission.--In addition to other matters assigned to it
by the President or Secretary of Defense, the Joint
Requirements Oversight Council shall--
``(1) assist the Chairman of the Joint Chiefs of Staff in
identifying and assessing the priority of joint military
requirements (including existing systems and equipment) to
meet the national military strategy;

[[Page H416]]

``(2) assist the Chairman in considering alternatives to
any acquisition program that has been identified to meet
military requirements by evaluating the cost, schedule, and
performance criteria of the program and of the identified
alternatives; and
``(3) as part of its mission to assist the Chairman in
assigning joint priority among existing and future programs
meeting valid requirements, ensure that the assignment of
such priorities conforms to and reflects resource levels
projected by the Secretary of Defense through defense
planning guidance.
``(c) Composition.--(1) The Joint Requirements Oversight
Council is composed of--
``(A) the Chairman of the Joint Chiefs of Staff, who is the
chairman of the Council;
``(B) an Army officer in the grade of general;
``(C) a Navy officer in the grade of admiral;
``(D) an Air Force officer in the grade of general; and
``(E) a Marine Corps officer in the grade of general.
``(2) Members of the Council, other than the Chairman of
the Joint Chiefs of Staff, shall be selected by the Chairman
of the Joint Chiefs of Staff, after consultation with the
Secretary of Defense, from officers in the grade of general
or admiral, as the case may be, who are recommended for such
selection by the Secretary of the military department
concerned.
``(3) The functions of the Chairman of the Joint Chiefs of
Staff as chairman of the Council may only be delegated to the
Vice Chairman of the Joint Chiefs of Staff.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``181. Joint Requirements Oversight Council.''.

(b) Effective Date.--The amendments made by this section
shall take effect on January 31, 1997.

SEC. 906. RESTRUCTURING OF DEPARTMENT OF DEFENSE ACQUISITION
ORGANIZATION AND WORKFORCE.

(a) Restructuring Report.--Not later than March 1, 1996,
the Secretary of Defense shall submit to Congress a report on
the acquisition organization and workforce of the Department
of Defense. The report shall include--
(1) the plan described in subsection (b); and
(2) the assessment of streamlining and restructuring
options described in subsection (c).
(b) Plan for Restructuring.--(1) The Secretary shall
include in the report under subsection (a) a plan on how to
restructure the current acquisition organization of the
Department of Defense in a manner that would enable the
Secretary to accomplish the following:
(A) Reduce the number of military and civilian personnel
assigned to, or employed in, acquisition organizations of the
Department of Defense (as defined by the Secretary) by 25
percent over a period of five years, beginning on October 1,
1995.
(B) Eliminate duplication of functions among existing
acquisition organizations of the Department of Defense.
(C) Maximize opportunity for consolidation among
acquisition organizations of the Department of Defense to
reduce management overhead.
(2) In the report, the Secretary shall also identify any
statutory requirement or congressional directive that
inhibits any proposed restructuring plan or reduction in the
size of the defense acquisition organization.
(3) In designing the plan under paragraph (1), the
Secretary shall give full consideration to the process
efficiencies expected to be achieved through the
implementation of the Federal Acquisition Streamlining Act of
1994 (Public Law 103-355), the Federal Acquisition Reform Act
of 1995 (division D of this Act), and other ongoing
initiatives to increase the use of commercial practices and
reduce contract overhead in the defense procurement system.
(c) Assessment of Specified Restructuring Options.--The
Secretary shall include in the report under subsection (a) a
detailed assessment of each of the following options for
streamlining and restructuring the existing defense
acquisition organization, together with a specific
recommendation as to whether each such option should be
implemented:
(1) Consolidation of certain functions of the Defense
Contract Audit Agency and the Defense Contract Management
Command.
(2) Contracting for performance of a significant portion of
the workload of the Defense Contract Audit Agency and other
Defense Agencies that perform acquisition functions.
(3) Consolidation or selected elimination of Department of
Defense acquisition organizations.
(4) Any other defense acquisition infrastructure
streamlining or restructuring option the Secretary may
determine.
(d) Reduction of Acquisition Workforce.--(1) The Secretary
of Defense shall accomplish reductions in defense acquisition
personnel positions during fiscal year 1996 so that the total
number of such personnel as of October 1, 1996, is less than
the total number of such personnel as of October 1, 1995, by
at least 15,000.
(2) For purposes of this subsection, the term ``defense
acquisition personnel'' means military and civilian personnel
assigned to, or employed in, acquisition organizations of the
Department of Defense (as specified in Department of Defense
Instruction numbered 5000.58 dated January 14, 1992) with the
exception of personnel who possess technical competence in
trade-skill maintenance and repair positions involved in
performing depot maintenance functions.

SEC. 907. REPORT ON NUCLEAR POSTURE REVIEW AND ON PLANS FOR
NUCLEAR WEAPONS MANAGEMENT IN EVENT OF
ABOLITION OF DEPARTMENT OF ENERGY.

(a) Report Required.--The Secretary of Defense shall submit
to Congress a report concerning the nuclear weapons complex.
The report shall set forth--
(1) the Secretary's views on the effectiveness of the
Department of Energy in managing the nuclear weapons complex,
including the fulfillment of the requirements for nuclear
weapons established for the Department of Energy in the
Nuclear Posture Review; and
(2) the Secretary's recommended plan for the incorporation
into the Department of Defense of the national security
programs of the Department of Energy if the Department of
Energy should be abolished and those programs be transferred
to the Department of Defense.
(b) Definition.--For purposes of this section, the term
``Nuclear Posture Review'' means the Department of Defense
Nuclear Posture Review as contained in the report entitled
``Report of the Secretary of Defense to the President and the
Congress'', dated February 19, 1995, or in subsequent such
reports.
(c) Submission Of Report.--The report under subsection (a)
shall be submitted not later than March 15, 1996.

SEC. 908. REDESIGNATION OF ADVANCED RESEARCH PROJECTS AGENCY.

(a) Redesignation.--The agency in the Department of Defense
known as the Advanced Research Projects Agency shall after
the date of the enactment of this Act be designated as the
Defense Advanced Research Projects Agency.
(b) References.--Any reference in any law, regulation,
document, record, or other paper of the United States or in
any provision of this Act to the Advanced Research Projects
Agency shall be considered to be a reference to the Defense
Advanced Research Projects Agency.
Subtitle B--Financial Management

SEC. 911. TRANSFER AUTHORITY REGARDING FUNDS AVAILABLE FOR
FOREIGN CURRENCY FLUCTUATIONS.

(a) Transfers to Military Personnel Accounts Authorized.--
Section 2779 of title 10, United States Code, is amended by
adding at the end the following:
``(c) Transfers to Military Personnel Accounts.--The
Secretary of Defense may transfer funds to military personnel
appropriations for a fiscal year out of funds available to
the Department of Defense for that fiscal year under the
appropriation `Foreign Currency Fluctuations, Defense'.''.
(b) Revision and Codification of Authority for Transfers to
Foreign Currency Fluctuations Account.--Section 2779 of such
title, as amended by subsection (a), is further amended by
adding at the end the following:
``(d) Transfers to Foreign Currency Fluctuations Account.--
(1) The Secretary of Defense may transfer to the
appropriation `Foreign Currency Fluctuations, Defense'
unobligated amounts of funds appropriated for operation and
maintenance and unobligated amounts of funds appropriated for
military personnel.
``(2) Any transfer from an appropriation under paragraph
(1) shall be made not later than the end of the second fiscal
year following the fiscal year for which the appropriation is
provided.
``(3) Any transfer made pursuant to the authority provided
in this subsection shall be limited so that the amount in the
appropriation `Foreign Currency Fluctuations, Defense' does
not exceed $970,000,000 at the time the transfer is made.''.
(c) Conditions of Availability for Transferred Funds.--
Section 2779 of such title, as amended by subsection (b), is
further amended by adding at the end the following:
``(e) Conditions of Availability for Transferred Funds.--
Amounts transferred under subsection (c) or (d) shall be
merged with and be available for the same purposes and for
the same period as the appropriations to which
transferred.''.
(d) Repeal of Superseded Provisions.--(1) Section 767A of
Public Law 96-527 (94 Stat. 3093) is repealed.
(2) Section 791 of the Department of Defense Appropriation
Act, 1983 (enacted in section 101(c) of Public Law 97-377; 96
Stat. 1865) is repealed.
(e) Technical Amendments.--Section 2779 of title 10, United
States Code, is amended--
(1) in subsection (a), by striking out ``(a)(1)'' and
inserting in lieu thereof ``(a) Transfers Back to Foreign
Currency Fluctuations Appropriation.--(1)'';
(2) in subsection (a)(2), by striking out ``2d fiscal
year'' and inserting in lieu thereof ``second fiscal year'';
and
(3) in subsection (b), by striking out ``(b)(1)'' and
inserting in lieu thereof ``(b) Funding for Losses in
Military Construction and Family Housing.--(1)''.
(f) Effective Date.--Subsections (c) and (d) of section
2779 of title 10, United States Code, as added by subsections
(a) and (b), and the repeals made by subsection (d), shall
apply only with respect to amounts appropriated for a fiscal
year after fiscal year 1995.

[[Page H417]]

SEC. 912. DEFENSE MODERNIZATION ACCOUNT.

(a) Establishment and Use.--(1) Chapter 131 of title 10,
United States Code, is amended by inserting after section
2215 the following new section:

``Sec. 2216. Defense Modernization Account

``(a) Establishment.--There is established in the Treasury
an account to be known as the `Defense Modernization
Account'.
``(b) Transfers to Account.--(1)(A) Upon a determination by
the Secretary of a military department or the Secretary of
Defense with respect to Defense-wide appropriations accounts
of the availability and source of funds described in
subparagraph (B), that Secretary may transfer to the Defense
Modernization Account during any fiscal year any amount of
funds available to the Secretary described in that
subparagraph. Such funds may be transferred to that account
only after the Secretary concerned notifies the congressional
defense committees in writing of the amount and source of the
proposed transfer.
``(B) This subsection applies to the following funds
available to the Secretary concerned:
``(i) Unexpired funds in appropriations accounts that are
available for procurement and that, as a result of economies,
efficiencies, and other savings achieved in carrying out a
particular procurement, are excess to the requirements of
that procurement.
``(ii) Unexpired funds that are available during the final
30 days of a fiscal year for support of installations and
facilities and that, as a result of economies, efficiencies,
and other savings, are excess to the requirements for support
of installations and facilities.
``(C) Any transfer under subparagraph (A) shall be made
under regulations prescribed by the Secretary of Defense.
``(2) Funds referred to in paragraph (1) may not be
transferred to the Defense Modernization Account if--
``(A) the funds are necessary for programs, projects, and
activities that, as determined by the Secretary, have a
higher priority than the purposes for which the funds would
be available if transferred to that account; or
``(B) the balance of funds in the account, after transfer
of funds to the account, would exceed $1,000,000,000.
``(3) Amounts credited to the Defense Modernization Account
shall remain available for transfer until the end of the
third fiscal year that follows the fiscal year in which the
amounts are credited to the account.
``(4) The period of availability of funds for expenditure
provided for in sections 1551 and 1552 of title 31 may not be
extended by transfer into the Defense Modernization Account.
``(c) Scope of Use of Funds.--Funds transferred to the
Defense Modernization Account from funds appropriated for a
military department, Defense Agency, or other element of the
Department of Defense shall be available in accordance with
subsections (f) and (g) only for transfer to funds available
for that military department, Defense Agency, or other
element.
``(d) Authorized Use of Funds.--Funds available from the
Defense Modernization Account pursuant to subsection (f) or
(g) may be used for the following purposes:
``(1) For increasing, subject to subsection (e), the
quantity of items and services procured under a procurement
program in order to achieve a more efficient production or
delivery rate.
``(2) For research, development, test, and evaluation and
for procurement necessary for modernization of an existing
system or of a system being procured under an ongoing
procurement program.
``(e) Limitations.--(1) Funds in the Defense Modernization
Account may not be used to increase the quantity of an item
or services procured under a particular procurement program
to the extent that doing so would--
``(A) result in procurement of a total quantity of items or
services in excess of--
``(i) a specific limitation provided by law on the quantity
of the items or services that may be procured; or
``(ii) the requirement for the items or services as
approved by the Joint Requirements Oversight Council and
reported to Congress by the Secretary of Defense; or
``(B) result in an obligation or expenditure of funds in
excess of a specific limitation provided by law on the amount
that may be obligated or expended, respectively, for that
procurement program.
``(2) Funds in the Defense Modernization Account may not be
used for a purpose or program for which Congress has not
authorized appropriations.
``(3) Funds may not be transferred from the Defense
Modernization Account in any year for the purpose of--
``(A) making an expenditure for which there is no
corresponding obligation; or
``(B) making an expenditure that would satisfy an
unliquidated or unrecorded obligation arising in a prior
fiscal year.
``(f) Transfer of Funds.--(1) The Secretary of Defense may
transfer funds in the Defense Modernization Account to
appropriations available for purposes set forth in subsection
(d).
``(2) Funds in the Defense Modernization Account may not be
transferred under paragraph (1) until 30 days after the date
on which the Secretary concerned notifies the congressional
defense committees in writing of the amount and purpose of
the proposed transfer.
``(3) The total amount of transfers from the Defense
Modernization Account during any fiscal year under this
subsection may not exceed $500,000,000.
``(g) Availability of Funds by Appropriation.--In addition
to transfers under subsection (f), funds in the Defense
Modernization Account may be made available for purposes set
forth in subsection (d) in accordance with the provisions of
appropriations Acts, but only to the extent authorized in an
Act other than an appropriations Act.
``(h) Secretary To Act Through Comptroller.--The Secretary
of Defense shall carry out this section through the Under
Secretary of Defense (Comptroller), who shall be authorized
to implement this section through the issuance of any
necessary regulations, policies, and procedures after
consultation with the General Counsel and Inspector General
of the Department of Defense.
``(i) Quarterly Reports.--(1) Not later than 15 days after
the end of each calendar quarter, the Secretary of Defense
shall submit to the congressional committees specified in
paragraph (2) a report on the Defense Modernization Account.
Each such report shall set forth the following:
``(A) The amount and source of each credit to the account
during that quarter.
``(B) The amount and purpose of each transfer from the
account during that quarter.
``(C) The balance in the account at the end of the quarter
and, of such balance, the amount attributable to transfers to
the account from each Secretary concerned.
``(2) The committees referred to in paragraph (1) are the
congressional defense committees and the Committee on
Governmental Affairs of the Senate and the Committee on
Government Reform and Oversight of the House of
Representatives.
``(j) Definitions.--In this section:
``(1) The term `Secretary concerned' includes the Secretary
of Defense with respect to Defense-wide appropriations
accounts.
``(2) The term `unexpired funds' means funds appropriated
for a definite period that remain available for obligation.
``(3) The term `congressional defense committees' means--
``(A) the Committee on Armed Services and the Committee on
Appropriations of the Senate; and
``(B) the Committee on National Security and the Committee
on Appropriations of the House of Representatives.''.
(2) The table of sections at the beginning of chapter 131
of such title is amended by inserting after the item relating
to section 2215 the following new item:

``2216. Defense Modernization Account.''.

(b) Effective Date.--Section 2216 of title 10, United
States Code (as added by subsection (a)), shall apply only to
funds appropriated for fiscal years after fiscal year 1995.
(c) Expiration of Authority and Account.--(1) The authority
under section 2216(b) of title 10, United States Code (as
added by subsection (a)), to transfer funds into the Defense
Modernization Account terminates at the close of September
30, 2003.
(2) Three years after the termination date specified in
paragraph (1), the Defense Modernization Account shall be
closed and any remaining balance in the account shall be
canceled and thereafter shall not be available for any
purpose.
(d) GAO Reviews.--(1) The Comptroller General of the United
States shall conduct two reviews of the administration of the
Defense Modernization Account. In each review, the
Comptroller General shall assess the operations and benefits
of the account.
(2) Not later than March 1, 2000, the Comptroller General
shall--
(A) complete the first review; and
(B) submit to the specified committees of Congress an
initial report on the administration and benefits of the
Defense Modernization Account.
(3) Not later than March 1, 2003, the Comptroller General
shall--
(A) complete the second review; and
(B) submit to the specified committees of Congress a final
report on the administration and benefits of the Defense
Modernization Account.
(4) Each such report shall include any recommended
legislation regarding the account that the Comptroller
General considers appropriate.
(5) For purposes of this subsection, the term ``specified
committees of Congress'' means the congressional committees
referred to in section 2216(i)(2) of title 10, United States
Code, as added by subsection (a).

SEC. 913. DESIGNATION AND LIABILITY OF DISBURSING AND
CERTIFYING OFFICIALS.

(a) Disbursing Officials.--(1) Section 3321(c) of title 31,
United States Code, is amended by striking out paragraph (2)
and inserting in lieu thereof the following:
``(2) The Department of Defense.''.
(2) Section 2773 of title 10, United States Code, is
amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking out ``With the approval
of a Secretary of a military department when the Secretary
considers it necessary, a disbursing official of the military
department'' and inserting in lieu thereof ``Subject to
paragraph (3), a disbursing official of the Department of
Defense''; and
(ii) by adding at the end the following new paragraph:
``(3) A disbursing official may make a designation under
paragraph (1) only with the

[[Page H418]]
approval of the Secretary of Defense or, in the case of a disbursing
official of a military department, the Secretary of that
military department.''; and
(B) in subsection (b)(1), by striking out ``any military
department'' and inserting in lieu thereof ``the Department
of Defense''.
(b) Designation of Members of the Armed Forces To Have
Authority To Certify Vouchers.--Section 3325(b) of title 31,
United States Code, is amended to read as follows:
``(b) In addition to officers and employees referred to in
subsection (a)(1)(B) of this section as having authorization
to certify vouchers, members of the armed forces under the
jurisdiction of the Secretary of Defense may certify vouchers
when authorized, in writing, by the Secretary to do so.''.
(c) Conforming Amendments.--(1) Section 1012 of title 37,
United States Code, is amended by striking out ``Secretary
concerned'' both places it appears and inserting in lieu
thereof ``Secretary of Defense''.
(2) Section 1007(a) of title 37, United States Code, is
amended by striking out ``Secretary concerned'' and inserting
in lieu thereof ``Secretary of Defense, or upon the denial of
relief of an officer pursuant to section 3527 of title 31''.
(3)(A) Section 7863 of title 10, United States Code, is
amended--
(i) in the first sentence, by striking out ``disbursements
of public moneys or'' and ``the money was paid or''; and
(ii) in the second sentence, by striking out ``disbursement
or''.
(B)(i) The heading of such section is amended to read as
follows:

``Sec. 7863. Disposal of public stores by order of commanding
officer''.

(ii) The item relating to such section in the table of
sections at the beginning of chapter 661 of such title is
amended to read as follows:

``7863. Disposal of public stores by order of commanding officer.''.

(4) Section 3527(b)(1) of title 31, United States Code, is
amended--
(A) by striking out ``a disbursing official of the armed
forces'' and inserting in lieu thereof ``an official of the
armed forces referred to in subsection (a)'';
(B) by striking out ``records,'' and inserting in lieu
thereof ``records, or a payment described in section
3528(a)(4)(A) of this title,'';
(C) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), and realigning such clauses
four ems from the left margin;
(D) by inserting before clause (i), as so redesignated, the
following:
``(A) in the case of a physical loss or deficiency--'';
(E) in clause (iii), as so redesignated, by striking out
the period at the end and inserting in lieu thereof ``; or'';
and
(F) by adding at the end the following:
``(B) in the case of a payment described in section
3528(a)(4)(A) of this title, the Secretary of Defense or the
Secretary of the appropriate military department, after
taking a diligent collection action, finds that the criteria
of section 3528(b)(1) of this title are satisfied.''.
(5) Section 3528 of title 31, United States Code, is
amended by striking out subsection (d).

SEC. 914. FISHER HOUSE TRUST FUNDS.

(a) Establishment.--(1) Chapter 131 of title 10, United
States Code, is amended by adding at the end the following
new section:

``Sec. 2221. Fisher House trust funds

``(a) Establishment.--The following trust funds are
established on the books of the Treasury:
``(1) The Fisher House Trust Fund, Department of the Army.
``(2) The Fisher House Trust Fund, Department of the Air
Force.
``(b) Investment.--Funds in the trust funds may be invested
in securities of the United States. Earnings and gains
realized from the investment of funds in a trust fund shall
be credited to the trust fund.
``(c) Use of Funds.--(1) Amounts in the Fisher House Trust
Fund, Department of the Army, that are attributable to
earnings or gains realized from investments shall be
available for the operation and maintenance of Fisher houses
that are located in proximity to medical treatment facilities
of the Army.
``(2) Amounts in the Fisher House Trust Fund, Department of
the Air Force, that are attributable to earnings or gains
realized from investments shall be available for the
operation and maintenance of Fisher houses that are located
in proximity to medical treatment facilities of the Air
Force.
``(3) The use of funds under this section is subject to
section 1321(b)(2) of title 31.
``(d) Fisher House Defined.--In this section, the term
`Fisher house' means a housing facility that--
``(1) is located in proximity to a medical treatment
facility of the Army or the Air Force; and
``(2) is available for residential use on a temporary basis
by patients at such facilities, members of the family of such
patients, and others providing the equivalent of familial
support for such patients.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``2221. Fisher House trust funds.''.

(b) Corpus of Trust Funds.--(1) The Secretary of the
Treasury shall--
(A) close the accounts established with the funds that were
required by section 8019 of Public Law 102-172 (105 Stat.
1175) and section 9023 of Public Law 102-396 (106 Stat. 1905)
to be transferred to an appropriated trust fund; and
(B) transfer the amounts in such accounts to the Fisher
House Trust Fund, Department of the Army, established by
subsection (a)(1) of section 2221 of title 10, United States
Code, as added by subsection (a).
(2) The Secretary of the Air Force shall transfer to the
Fisher House Trust Fund, Department of the Air Force,
established by subsection (a)(2) of section 2221 of title 10,
United States Code (as added by section (a)), all amounts in
the accounts for Air Force installations and other facilities
that, as of the date of the enactment of this Act, are
available for operation and maintenance of Fisher houses (as
defined in subsection (d) of such section 2221).
(c) Conforming Amendments.--Section 1321 of title 31,
United States Code, is amended--
(1) by adding at the end of subsection (a) the following:
``(92) Fisher House Trust Fund, Department of the Army.
``(93) Fisher House Trust Fund, Department of the Air
Force.''; and
(2) in subsection (b)--
(A) by inserting ``(1)'' after ``(b)'';
(B) in the second sentence, by striking out ``Amounts
accruing to these funds (except to the trust fund `Armed
Forces Retirement Home Trust Fund')'' and inserting in lieu
thereof ``Except as provided in paragraph (2), amounts
accruing to these funds'';
(C) by striking out the third sentence; and
(D) by adding at the end the following:
``(2) Expenditures from the following trust funds may be
made only under annual appropriations and only if the
appropriations are specifically authorized by law:
``(A) Armed Forces Retirement Home Trust Fund.
``(B) Fisher House Trust Fund, Department of the Army.
``(C) Fisher House Trust Fund, Department of the Air
Force.''.
(d) Repeal of Superseded Provisions.--The following
provisions of law are repealed:
(1) Section 8019 of Public Law 102-172 (105 Stat. 1175).
(2) Section 9023 of Public Law 102-396 (106 Stat. 1905).
(3) Section 8019 of Public Law 103-139 (107 Stat. 1441).
(4) Section 8017 of Public Law 103-335 (108 Stat. 2620; 10
U.S.C. 1074 note).

SEC. 915. LIMITATION ON USE OF AUTHORITY TO PAY FOR EMERGENCY
AND EXTRAORDINARY EXPENSES.

Section 127 of title 10, United States Code, is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection (c):
``(c)(1) Funds may not be obligated or expended in an
amount in excess of $500,000 under the authority of
subsection (a) or (b) until the Secretary of Defense has
notified the Committee on Armed Services and the Committee on
Appropriations of the Senate and the Committee on National
Security and the Committee on Appropriations of the House of
Representatives of the intent to obligate or expend the
funds, and--
``(A) in the case of an obligation or expenditure in excess
of $1,000,000, 15 days have elapsed since the date of the
notification; or
``(B) in the case of an obligation or expenditure in excess
of $500,000, but not in excess of $1,000,000, 5 days have
elapsed since the date of the notification.
``(2) Subparagraph (A) or (B) of paragraph (1) shall not
apply to an obligation or expenditure of funds otherwise
covered by such subparagraph if the Secretary of Defense
determines that the national security objectives of the
United States will be compromised by the application of the
subparagraph to the obligation or expenditure. If the
Secretary makes a determination with respect to an obligation
or expenditure under the preceding sentence, the Secretary
shall immediately notify the committees referred to in
paragraph (1) that such obligation or expenditure is
necessary and provide any relevant information (in classified
form, if necessary) jointly to the chairman and ranking
minority member (or their designees) of such committees.
``(3) A notification under paragraph (1) and information
referred to in paragraph (2) shall include the amount to be
obligated or expended, as the case may be, and the purpose of
the obligation or expenditure.''.
TITLE X--GENERAL PROVISIONS
Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

(a) Authority To Transfer Authorizations.--(1) Upon
determination by the Secretary of Defense that such action is
necessary in the national interest, the Secretary may
transfer amounts of authorizations made available to the
Department of Defense in this division for fiscal year 1996
between any such authorizations for that fiscal year (or any
subdivisions thereof). Amounts of authorizations so
transferred shall be merged with and be available for the
same purposes as the authorization to which transferred.
(2) The total amount of authorizations that the Secretary
of Defense may transfer under the authority of this section
may not exceed $2,000,000,000.
(b) Limitations.--The authority provided by this section to
transfer authorizations--
(1) may only be used to provide authority for items that
have a higher priority than

[[Page H419]]
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.

(a) Status of Classified Annex.--The Classified Annex
prepared by the committee on conference to accompany the bill
H.R. 1530 of the One Hundred Fourth Congress and transmitted
to the President is hereby incorporated into this Act.
(b) Construction With Other Provisions of Act.--The amounts
specified in the Classified Annex are not in addition to
amounts authorized to be appropriated by other provisions of
this Act.
(c) Limitation on Use of Funds.--Funds appropriated
pursuant to an authorization contained in this Act that are
made available 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
provide for appropriate distribution of the Classified Annex,
or of appropriate portions of the annex, within the executive
branch of the Government.

SEC. 1003. IMPROVED FUNDING MECHANISMS FOR UNBUDGETED
OPERATIONS.

(a) Revision of Funding Mechanism.--(1) Section 127a of
title 10, United States Code, is amended to read as follows:

``Sec. 127a. Operations for which funds are not provided in
advance: funding mechanisms

``(a) In General.--(1) The Secretary of Defense shall use
the procedures prescribed by this section with respect to any
operation specified in paragraph (2) that involves--
``(A) the deployment (other than for a training exercise)
of elements of the Armed Forces for a purpose other than a
purpose for which funds have been specifically provided in
advance; or
``(B) the provision of humanitarian assistance, disaster
relief, or support for law enforcement (including immigration
control) for which funds have not been specifically provided
in advance.
``(2) This section applies to--
``(A) any operation the incremental cost of which is
expected to exceed $50,000,000; and
``(B) any other operation the expected incremental cost of
which, when added to the expected incremental costs of other
operations that are currently ongoing, is expected to result
in a cumulative incremental cost of ongoing operations of the
Department of Defense in excess of $100,000,000.
Any operation the incremental cost of which is expected not
to exceed $10,000,000 shall be disregarded for the purposes
of subparagraph (B).
``(3) Whenever an operation to which this section applies
is commenced or subsequently becomes covered by this section,
the Secretary of Defense shall designate and identify that
operation for the purposes of this section and shall promptly
notify Congress of that designation (and of the
identification of the operation).
``(4) This section does not provide authority for the
President or the Secretary of Defense to carry out any
operation, but establishes mechanisms for the Department of
Defense by which funds are provided for operations that the
armed forces are required to carry out under some other
authority.
``(b) Waiver of Requirement To Reimburse Support Units.--
(1) The Secretary of Defense shall direct that, when a unit
of the Armed Forces participating in an operation described
in subsection (a) receives services from an element of the
Department of Defense that operates through the Defense
Business Operations Fund (or a successor fund), such unit of
the Armed Forces may not be required to reimburse that
element for the incremental costs incurred by that element in
providing such services, notwithstanding any other provision
of law or any Government accounting practice.
``(2) The amounts which but for paragraph (1) would be
required to be reimbursed to an element of the Department of
Defense (or a fund) shall be recorded as an expense
attributable to the operation and shall be accounted for
separately.
``(c) Transfer Authority.--(1) Whenever there is an
operation of the Department of Defense described in
subsection (a), the Secretary of Defense may transfer amounts
described in paragraph (3) to accounts from which incremental
expenses for that operation were incurred in order to
reimburse those accounts for those incremental expenses.
Amounts so transferred shall be merged with and be
available for the same purposes as the accounts to which
transferred.
``(2) The total amount that the Secretary of Defense may
transfer under the authority of this section in any fiscal
year is $200,000,000.
``(3) Transfers under this subsection may only be made from
amounts appropriated to the Department of Defense for any
fiscal year that remain available for obligation, other than
amounts within any operation and maintenance appropriation
that are available for (A) an account (known as a budget
activity 1 account) that is specified as being for operating
forces, or (B) an account (known as a budget activity 2
account) that is specified as being for mobilization.
``(4) The authority provided by this subsection is in
addition to any other authority provided by law authorizing
the transfer of amounts available to the Department of
Defense. However, the Secretary may not use any such
authority under another provision of law for a purpose
described in paragraph (1) if there is authority available
under this subsection for that purpose.
``(5) The authority provided by this subsection to transfer
amounts may not be used to provide authority for an activity
that has been denied authorization by Congress.
``(6) A transfer made from one account to another under the
authority of this subsection shall be deemed to increase the
amount authorized for the account to which the amount is
transferred by an amount equal to the amount transferred.
``(d) Report Upon Designation of an Operation.--Within 45
days after the Secretary of Defense identifies an operation
pursuant to subsection (a)(2), the Secretary of Defense shall
submit to Congress a report that sets forth the following:
``(1) The manner by which the Secretary proposes to obtain
funds for the cost to the United States of the operation,
including a specific discussion of how the Secretary proposes
to restore balances in--
``(A) the Defense Business Operations Fund (or a successor
fund), or
``(B) the accounts from which the Secretary transfers funds
under the authority of subsection (c), to the levels that
would have been anticipated but for the provisions of
subsection (c).
``(2) If the operation is described in subsection
(a)(1)(B), a justification why the budgetary resources of
another department or agency of the Federal Government,
instead of resources of the Department of Defense, are not
being used for carrying out the operation.
``(3) The objectives of the operation.
``(4) The estimated duration of the operation and of any
deployment of armed forces personnel in such operation.
``(5) The estimated incremental cost of the operation to
the United States.
``(6) The exit criteria for the operation and for the
withdrawal of the elements of the armed forces involved in
the operation.
``(e) Limitations.--(1) The Secretary may not restore
balances in the Defense Business Operations Fund through
increases in rates charged by that fund in order to
compensate for costs incurred and not reimbursed due to
subsection (b).
``(2) The Secretary may not restore balances in the Defense
Business Operations Fund or any other fund or account through
the use of unobligated amounts in an operation and
maintenance appropriation that are available within that
appropriation for (A) an account (known as a budget activity
1 account) that is specified as being for operating forces,
or (B) an account (known as a budget activity 2 account) that
is specified as being for mobilization.
``(f) Submission of Requests for Supplemental
Appropriations.--It is the sense of Congress that whenever
there is an operation described in subsection (a), the
President should, not later than 90 days after the date on
which notification is provided pursuant to subsection (a)(3),
submit to Congress a request for the enactment of
supplemental appropriations for the then-current fiscal year
in order to provide funds to replenish the Defense Business
Operations Fund or any other fund or account of the
Department of Defense from which funds for the incremental
expenses of that operation were derived under this section
and should, as necessary, submit subsequent requests for the
enactment of such appropriations.
``(g) Incremental Costs.--For purposes of this section,
incremental costs of the Department of Defense with respect
to an operation are the costs of the Department that are
directly attributable to the operation (and would not have
been incurred but for the operation). Incremental costs do
not include the cost of property or services acquired by the
Department that are paid for by a source outside the
Department or out of funds contributed by such a source.
``(h) Relationship to War Powers Resolution.--This section
may not be construed as altering or superseding the War
Powers Resolution. This section does not provide authority to
conduct any military operation.
``(i) GAO Compliance Reviews.--The Comptroller General of
the United States shall from time to time, and when requested
by a committee of Congress, conduct a review of the defense
funding structure under this section to determine whether the
Department of Defense is complying with the requirements and
limitations of this section.''.
(2) The item relating to section 127a in the table of
sections at the beginning of chapter 3 of such title is
amended to read as follows:

``127a. Operations for which funds are not provided in advance: funding
mechanisms.''.

(b) Effective Date.--The amendment to section 127a of title
10, United States Code, made by subsection (a) shall take
effect on the date of the enactment of this Act and

[[Page H420]]
shall apply to any operation of the Department of Defense that is in
effect on or after that date, whether such operation is begun
before, on, or after such date of enactment. In the case of
an operation begun before such date, any reference in such
section to the commencement of such operation shall be
treated as referring to the effective date under the
preceding sentence.

SEC. 1004. OPERATION PROVIDE COMFORT.

(a) Authorization of Amounts Available.--Within the total
amounts authorized to be appropriated in titles III and IV,
there is hereby authorized to be appropriated for fiscal year
1996 for costs associated with Operation Provide Comfort--
(1) $136,300,000 for operation and maintenance costs; and
(2) $7,000,000 for incremental military personnel costs.
(b) Report.--Not more than $70,000,000 of the amount
appropriated under subsection (a) may be obligated until the
Secretary of Defense submits to the congressional defense
committees a report on Operation Provide Comfort which
includes the following:
(1) A detailed presentation of the projected costs to be
incurred by the Department of Defense for Operation Provide
Comfort during fiscal year 1996, together with a discussion
of missions and functions expected to be performed by the
Department as part of that operation during that fiscal year.
(2) A detailed presentation of the projected costs to be
incurred by other departments and agencies of the Federal
Government participating in or providing support to Operation
Provide Comfort during fiscal year 1996.
(3) A discussion of available options to reduce the
involvement of the Department of Defense in those aspects of
Operation Provide Comfort that are not directly related to
the military mission of the Department of Defense.
(4) A plan establishing an exit strategy for United States
involvement in, and support for, Operation Provide Comfort.
(c) Operation Provide Comfort.--For purposes of this
section, the term ``Operation Provide Comfort'' means the
operation of the Department of Defense that as of October 30,
1995, is designated as Operation Provide Comfort.

SEC. 1005. OPERATION ENHANCED SOUTHERN WATCH.

(a) Authorization of Amounts Available.--Within the total
amounts authorized to be appropriated in titles III and IV,
there is hereby authorized to be appropriated for fiscal year
1996 for costs associated with Operation Enhanced Southern
Watch--
(1) $433,400,000 for operation and maintenance costs; and
(2) $70,400,000 for incremental military personnel costs.
(b) Report.--(1) Of the amounts specified in subsection
(a), not more than $250,000,000 may be obligated until the
Secretary of Defense submits to the congressional defense
committees a report designating Operation Enhanced Southern
Watch, or significant elements thereof, as a forward presence
operation for which funding should be budgeted as part of the
annual defense budget process in the same manner as other
activities of the Armed Forces involving forward presence or
forward deployed forces.
(2) The report shall set forth the following:
(A) The expected duration and annual costs of the various
elements of Operation Enhanced Southern Watch.
(B) Those elements of Operation Enhanced Southern Watch
that are semi-permanent in nature and should be budgeted in
the future as part of the annual defense budget process in
the same manner as other activities of the Armed Forces
involving forward presence or forward deployed forces.
(C) The political and military objectives associated with
Operation Enhanced Southern Watch.
(D) The contributions (both in-kind and actual) by other
nations to the costs of conducting Operation Enhanced
Southern Watch.
(c) Operation Enhanced Southern Watch.--For purposes of
this section, 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.

SEC. 1006. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED
FISCAL YEAR 1995 DEFENSE APPROPRIATIONS.

(a) Authority.--The amounts described in subsection (b) may
be obligated and expended for programs, projects, and
activities of the Department of Defense in accordance with
fiscal year 1995 defense appropriations.
(b) Covered Amounts.--The amounts referred to in subsection
(a) are the amounts provided for programs, projects, and
activities of the Department of Defense in fiscal year 1995
defense appropriations that are in excess of the amounts
provided for such programs, projects, and activities in
fiscal year 1995 defense authorizations.
(c) Definitions.--For the purposes of this section:
(1) Fiscal year 1995 defense appropriations.--The term
``fiscal year 1995 defense appropriations'' means amounts
appropriated or otherwise made available to the Department of
Defense for fiscal year 1995 in the Department of Defense
Appropriations Act, 1995 (Public Law 103-335).
(2) Fiscal year 1995 defense authorizations.--The term
``fiscal year 1995 defense authorizations'' means amounts
authorized to be appropriated for the Department of Defense
for fiscal year 1995 in the National Defense Authorization
Act for Fiscal Year 1995 (Public Law 103-337).

SEC. 1007. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL
APPROPRIATIONS FOR FISCAL YEAR 1995.

(a) Adjustment to Previous Authorizations.--Amounts
authorized to be appropriated to the Department of Defense
for fiscal year 1995 in the National Defense Authorization
Act for Fiscal Year 1995 (Public Law 103-337) are hereby
adjusted, with respect to any such authorized amount, by the
amount by which appropriations pursuant to such authorization
were increased (by a supplemental appropriation) or decreased
(by a rescission), or both, in title I of the Emergency
Supplemental Appropriations and Rescissions for the
Department of Defense to Preserve and Enhance Military
Readiness Act of 1995 (Public Law 104-6; 109 Stat. 73).
(b) New Authorization.--The appropriation provided in
section 104 of such Act (109 Stat. 79) is hereby authorized.

SEC. 1008. AUTHORIZATION REDUCTIONS TO REFLECT SAVINGS FROM
REVISED ECONOMIC ASSUMPTIONS.

(a) Reduction.--The total amount authorized to be
appropriated in titles I, II, and III of this Act is hereby
reduced by $832,000,000 to reflect savings from revised
economic assumptions. Such reduction shall be made from
accounts in those titles as follows:
Operation and Maintenance, Army, $54,000,000.
Operation and Maintenance, Navy, $80,000,000.
Operation and Maintenance, Marine Corps, $9,000,000.
Operation and Maintenance, Air Force, $51,000,000.
Operation and Maintenance, Defense-Wide, $36,000,000.
Operation and Maintenance, Army Reserve, $4,000,000.
Operation and Maintenance, Navy Reserve, $4,000,000.
Operation and Maintenance, Marine Corps Reserve,
$1,000,000.
Operation and Maintenance, Air Force Reserve, $3,000,000.
Operation and Maintenance, Army National Guard, $7,000,000.
Operation and Maintenance, Air National Guard, $7,000,000.
Drug Interdiction and Counter-Drug Activities, Defense,
$5,000,000.
Environmental Restoration, Defense, $11,000,000.
Overseas Humanitarian, Disaster, and Civic Aid, $1,000,000.
Former Soviet Union Threat Reduction, $2,000,000.
Defense Health Program, $51,000,000.
Aircraft Procurement, Army, $9,000,000.
Missile Procurement, Army, $5,000,000.
Procurement of Weapons and Tracked Combat Vehicles, Army,
$10,000,000.
Procurement of Ammunition, Army, $6,000,000.
Other Procurement, Army, $17,000,000.
Aircraft Procurement, Navy, $29,000,000.
Weapons Procurement, Navy, $13,000,000.
Shipbuilding and Conversion, Navy, $42,000,000.
Other Procurement, Navy, $18,000,000.
Procurement, Marine Corps, $4,000,000.
Aircraft Procurement, Air Force, $50,000,000.
Missile Procurement, Air Force, $29,000,000.
Other Procurement, Air Force, $45,000,000.
Procurement, Defense-Wide, $16,000,000.
Chemical Agents and Munitions Destruction, Defense,
$5,000,000.
Research, Development, Test and Evaluation, Army,
$20,000,000.
Research, Development, Test and Evaluation, Navy,
$50,000,000.
Research, Development, Test and Evaluation, Air Force,
$79,000,000.
Research, Development, Test and Evaluation, Defense-Wide,
$57,000,000.
Research, Development, Test and Evaluation, Defense,
$2,000,000.
(b) Reductions To Be Applied Proportionally.--Reductions
under this section shall be applied proportionally to each
budget activity, activity group, and subactivity group and to
each program, project, and activity within each account.
Subtitle B--Naval Vessels and Shipyards

SEC. 1011. IOWA CLASS BATTLESHIPS.

(a) Return to Naval Vessel Register.--The Secretary of the
Navy shall list on the Naval Vessel Register, and maintain on
such register, at least two of the Iowa-class battleships
that were stricken from the register in February 1995.
(b) Support.--The Secretary shall retain the existing
logistical support necessary for support of at least two
operational Iowa class battleships in active service,
including technical manuals, repair and replacement parts,
and ordnance.
(c) Selection of Ships.--The Secretary shall select for
listing on the Naval Vessel Register under subsection (a)
Iowa class battleships that are in good material condition
and can provide adequate fire support for an amphibious
assault.
(d) Replacement Fire-Support Capability.--(1) If the
Secretary of the Navy makes a certification described in
paragraph (2), the requirements of subsections (a) and (b)
shall terminate, effective 60 days after the date of the
submission of such certification.
(2) A certification referred to in paragraph (1) is a
certification submitted by the Secretary of the Navy in
writing to the Committee on Armed Services of the Senate and
the

[[Page H421]]
Committee on National Security of the House of Representatives that the
Navy has within the fleet an operational surface fire-support
capability that equals or exceeds the fire-support capability
that the Iowa class battleships listed on the Naval Vessel
Register pursuant to subsection (a) would, if in active
service, be able to provide for Marine Corps amphibious
assaults and operations ashore.

SEC. 1012. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN
COUNTRIES.

(a) Transfers by Grant.--The Secretary of the Navy is
authorized to transfer on a grant basis under section 516 of
the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) frigates
of the Oliver Hazard Perry class to other countries as
follows:
(1) To the Government of Bahrain, the guided missile
frigate Jack Williams (FFG 24).
(2) To the Government of Egypt, the frigate Copeland (FFG
25).
(3) To the Government of Turkey, the frigates Clifton
Sprague (FFG 16) and Antrim (FFG 20).
(b) Transfers by Lease or Sale.--The Secretary of the Navy
is authorized to transfer on a lease basis under section 61
of the Arms Export Control Act (22 U.S.C. 2796) or on a sale
basis under section 21 of the Arms Export Control Act (22
U.S.C. 2761) frigates of the Oliver Hazard Perry class to
other countries as follows:
(1) To the Government of Egypt, the frigate Duncan (FFG
10).
(2) To the Government of Oman, the guided missile frigate
Mahlon S. Tisdale (FFG 27).
(3) To the Government of Turkey, the frigate Flatley (FFG
21).
(4) To the Government of the United Arab Emirates, the
guided missile frigate Gallery (FFG 26).
(c) Financing for Transfers by Lease.--Section 23 of the
Arms Export Control Act (22 U.S.C. 2763) may be used to
provide financing for any transfer by lease under subsection
(b) in the same manner as if such transfer were a procurement
by the recipient nation of a defense article.
(d) Costs of Transfers.--Any expense incurred by the United
States in connection with a transfer authorized by subsection
(a) or (b) shall be charged to the recipient.
(e) Expiration of Authority.--The authority to transfer a
vessel under subsection (a) and under subsection (b) shall
expire at the end of the two-year period beginning on the
date of the enactment of this Act, except that a lease
entered into during that period under any provision of
subsection (b) may be renewed.
(f) Repair and Refurbishment in United States Shipyards.--
The Secretary of the Navy shall require, as a condition of
the transfer of a vessel under this section, that the country
to which the vessel is transferred have such repair or
refurbishment of the vessel as is needed, before the vessel
joins the naval forces of that country, performed at a
shipyard located in the United States, including a United
States Navy shipyard.
(g) Prohibition on Certain Transfers of Vessels on Grant
Basis.--(1) Section 516 of the Foreign Assistance Act of 1961
(22 U.S.C. 2321j) is amended by adding at the end the
following new subsection:
``(g) Prohibition on Certain Transfers of Vessels on Grant
Basis.--(1) The President may not transfer on a grant basis
under this section a vessel that is in excess of 3,000 tons
or that is less than 20 years of age.
``(2) If the President determines that it is in the
national security interests of the United States to transfer
a particular vessel on a grant basis under this section, the
President may request that Congress enact legislation
exempting the transfer from the prohibition in paragraph
(1).''.
(2) The amendment made by paragraph (1) shall apply with
respect to the transfer of a vessel on or after the date of
the enactment of this Act (other than a vessel the transfer
of which is authorized by subsection (a) or by law before the
date of the enactment of this Act).

SEC. 1013. CONTRACT OPTIONS FOR LMSR VESSELS.

(a) Findings.--Congress makes the following findings:
(1) A requirement for the Department of the Navy to acquire
19 large, medium-speed, roll-on/roll-off (LMSR) vessels was
established by the Secretary of Defense in the Mobility
Requirements Study conducted after the Persian Gulf War
pursuant to section 909 of the National Defense Authorization
Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1623)
and was revalidated by the Secretary of Defense in the report
entitled ``Mobility Requirements Study Bottom-Up Review
Update'', submitted to Congress in April 1995.
(2) The Strategic Sealift Program is a vital element of the
national military strategy calling for the Nation to be able
to fight and win two nearly simultaneous major regional
contingencies.
(3) The Secretary of the Navy has entered into contracts
with shipyards covering acquisition of a total of 17 such
LMSR vessels, of which five are vessel conversions and 12 are
new construction vessels. Under those contracts, the
Secretary has placed orders for the acquisition of 11 vessels
and has options for the acquisition of six more, all of which
would be new construction vessels. The options allow the
Secretary to place orders for one vessel to be constructed at
each of two shipyards for award before December 31, 1995,
December 31, 1996, and December 31, 1997, respectively.
(4) Acquisition of an additional two such LMSR vessels, for
a total of 19 vessels (the requirement described in paragraph
(1)) would contribute to preservation of the industrial base
of United States shipyards capable of building auxiliary and
sealift vessels.
(b) Sense of Congress.--It is the sense of Congress that
the Secretary of the Navy should plan for, and budget to
provide for, the acquisition as soon as possible of a total
of 19 large, medium-speed, roll-on/roll-off (LMSR) vessels
(the number determined to be required in the Mobility
Requirements Study referred to in subsection (a)(1)), rather
than only 17 such vessels (the number of vessels under
contract as of May 1995).
(c) Additional New Construction Contract Option.--The
Secretary of the Navy should negotiate with each of the two
shipyards holding new construction contracts referred to in
subsection (a)(3) (Department of the Navy contracts numbered
N00024-93-C-2203 and N00024-93-C-2205) for an option under
each such contract for construction of one additional such
LMSR vessel, with such option to be available to the
Secretary for exercise during 1995, 1996, or 1997, subject to
the availability of funds authorized and appropriated for
such purpose. Nothing in this subsection shall be construed
to preclude the Secretary of the Navy from competing the
award of the two options between the two shipyards holding
new construction contracts referred to in subsection (a)(3).
(d) Report.--The Secretary of the Navy shall submit to the
congressional defense committees, by March 31, 1996, a report
stating the intentions of the Secretary regarding the
acquisition of options for the construction of two additional
LMSR vessels as described in subsection (c).

SEC. 1014. NATIONAL DEFENSE RESERVE FLEET.

(a) Availability of National Defense Sealift Fund.--Section
2218 of title 10, United States Code, is amended--
(1) in subsection (c)(1)--
(A) by striking out ``only for--'' in the matter preceding
subparagraph (A) and inserting in lieu thereof ``only for the
following purposes:'';
(B) by capitalizing the first letter of the first word of
subparagraphs (A), (B), (C), and (D);
(C) by striking out the semicolon at the end of
subparagraphs (A) and (B) and inserting in lieu thereof a
period;
(D) by striking out ``; and'' at the end of subparagraph
(C) and inserting in lieu thereof a period; and
(E) by adding at the end the following new subparagraph:
``(E) Expenses for maintaining the National Defense Reserve
Fleet under section 11 of the Merchant Ship Sales Act of 1946
(50 U.S.C. App. 1744), and for the costs of acquisition of
vessels for, and alteration and conversion of vessels in (or
to be placed in), the fleet, but only for vessels built in
United States shipyards.''; and
(2) in subsection (i), by inserting ``(other than
subsection (c)(1)(E))'' after ``Nothing in this section''.
(b) Clarification of Exemption of NDRF Vessels From
Retrofit Requirement.--Section 11 of the Merchant Ship Sales
Act of 1946 (50 U.S.C. App. 1744) is amended by adding at the
end the following new subsection:
``(e) Vessels in the National Defense Reserve Fleet are
exempt from the provisions of section 3703a of title 46,
United States Code.''.
(c) Authority To Use National Defense Sealift Fund To
Convert Two Vessels.--Of the amount authorized to be
appropriated in section 302 for fiscal year 1996 for the
National Defense Sealift Fund under section 2218 of title 10,
United States Code, not more than $20,000,000 shall be
available for conversion work on the following two roll-on/
roll-off vessels, which were acquired by the Maritime
Administration during fiscal year 1995:
(1) M/V Cape Knox (ON-1036323).
(2) M/V Cape Kennedy (ON-1036324).

SEC. 1015. NAVAL SALVAGE FACILITIES.

Chapter 637 of title 10, United States Code, is amended to
read as follows:

``CHAPTER 637--SALVAGE FACILITIES

``Sec.
``7361. Authority to provide for necessary salvage facilities.
``7362. Acquisition and transfer of vessels and equipment.
``7363. Settlement of claims.
``7364. Disposition of receipts.

``Sec. 7361. Authority to provide for necessary salvage
facilities

``(a) Authority.--The Secretary of the Navy may provide, by
contract or otherwise, necessary salvage facilities for
public and private vessels.
``(b) Coordination With Secretary of Transportation.--The
Secretary shall submit to the Secretary of Transportation for
comment each proposed contract for salvage facilities that
affects the interests of the Department of Transportation.
``(c) Limitation.--The Secretary of the Navy may enter into
a term contract under subsection (a) only if the Secretary
determines that available commercial salvage facilities are
inadequate to meet the requirements of national defense.
``(d) Public Notice.--The Secretary may not enter into a
contract under subsection (a) until the Secretary has
provided public notice of the intent to enter into such a
contract.

[[Page H422]]

``Sec. 7362. Acquisition and transfer of vessels and
equipment

``(a) Authority.--The Secretary of the Navy may acquire or
transfer for operation by private salvage companies such
vessels and equipment as the Secretary considers necessary.
``(b) Agreement on Use.--Before any salvage vessel or
salvage gear is transferred by the Secretary to a private
party, the private party must agree in writing with the
Secretary that the vessel or gear will be used to support
organized offshore salvage facilities for a period of as many
years as the Secretary considers appropriate.
``(c) Reference to Authority To Advance Funds for Immediate
Salvage Operations.--For authority for the Secretary of the
Navy to advance to private salvage companies such funds as
the Secretary considers necessary to provide for the
immediate financing of salvage operations, see section
2307(g)(2) of this title.

``Sec. 7363. Settlement of claims

``The Secretary of the Navy may settle any claim by the
United States for salvage services rendered by the Department
of the Navy and may receive payment of any such claim.

``Sec. 7364. Disposition of receipts

``Amounts received under this chapter shall be credited to
appropriations for maintaining naval salvage facilities.
However, any amount received under this chapter in any fiscal
year in excess of naval salvage costs incurred by the Navy
during that fiscal year shall be deposited into the general
fund of the Treasury.''.

SEC. 1016. VESSELS SUBJECT TO REPAIR UNDER PHASED MAINTENANCE
CONTRACTS.

(a) In General.--The Secretary of the Navy shall ensure
that any vessel that is covered by the contract referred to
in subsection (b) remains covered by that contract,
regardless of the operating command to which the vessel is
subsequently assigned, unless the vessel is taken out of
service for the Department of the Navy.
(b) Covered Contract.--The contract referred to in
subsection (a) is the contract entered into before the date
of the enactment of this Act for the phased maintenance of AE
class ships.

SEC. 1017. CLARIFICATION OF REQUIREMENTS RELATING TO REPAIRS
OF VESSELS.

Section 7310(a) of title 10, United States Code, is amended
by inserting ``or Guam'' after ``the United States'' the
second place it appears.

SEC. 1018. SENSE OF CONGRESS CONCERNING NAMING OF AMPHIBIOUS
SHIPS.

It is the sense of Congress that the Secretary of the
Navy--
(1) should name the vessel to be designated LHD-7 as the
U.S.S. Iwo Jima; and
(2) should name the vessel to be designated LPD-17, and
each subsequent ship of the LPD-17 class, after a Marine
Corps battle or a member of the Marine Corps.

SEC. 1019. SENSE OF CONGRESS CONCERNING NAMING OF NAVAL
VESSEL.

It is the sense of Congress that the Secretary of the Navy
should name an appropriate ship of the United States Navy the
U.S.S. Joseph Vittori, in honor of Marine Corporal Joseph
Vittori (1929-1951) of Beverly, Massachusetts, who was
posthumously awarded the Medal of Honor for actions against
the enemy in Korea on September 15-16, 1951.

SEC. 1020. TRANSFER OF RIVERINE PATROL CRAFT.

(a) Authority To Transfer Vessel.--Notwithstanding
subsections (a) and (d) of section 7306 of title 10, United
States Code, but subject to subsections (b) and (c) of that
section, the Secretary of the Navy may transfer a vessel
described in subsection (b) to Tidewater Community College,
Portsmouth, Virginia, for scientific and educational
purposes.
(b) Vessel.--The authority under subsection (a) applies in
the case of a riverine patrol craft of the U.S.S. Swift
class.
(c) Limitation.--The transfer authorized by subsection (a)
may be made only if the Secretary determines that the vessel
to be transferred is of no further use to the United States
for national security purposes.
(d) Terms and Conditions.--The Secretary may require such
terms and conditions in connection with the transfer
authorized by this section as the Secretary considers
appropriate.
Subtitle C--Counter-Drug Activities

SEC. 1021. REVISION AND CLARIFICATION OF AUTHORITY FOR
FEDERAL SUPPORT OF DRUG INTERDICTION AND
COUNTER-DRUG ACTIVITIES OF THE NATIONAL GUARD.

(a) Funding Assistance Authorized.--Subsection (a) of
section 112 of title 32, United States Code, is amended to
read as follows:
``(a) Funding Assistance.--The Secretary of Defense may
provide funds to the Governor of a State who submits to the
Secretary a State drug interdiction and counter-drug
activities plan satisfying the requirements of subsection
(c). Such funds shall be used for--
``(1) the pay, allowances, clothing, subsistence,
gratuities, travel, and related expenses, as authorized by
State law, of personnel of the National Guard of that State
used, while not in Federal service, for the purpose of drug
interdiction and counter-drug activities;
``(2) the operation and maintenance of the equipment and
facilities of the National Guard of that State used for the
purpose of drug interdiction and counter-drug activities; and
``(3) the procurement of services and leasing of equipment
for the National Guard of that State used for the purpose of
drug interdiction and counter-drug activities.''.
(b) Reorganization of Section.--Such section is further
amended--
(1) by redesignating subsection (f) as subsection (h);
(2) by redesignating subsection (d) as subsection (g) and
transferring that subsection to appear before subsection (h),
as redesignated by paragraph (1); and
(3) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively.
(c) State Drug Interdiction and Counter-drug Activities
Plan.--Subsection (c) of such section, as redesignated by
subsection (b)(3), is amended--
(1) in the matter preceding paragraph (1), by striking out
``A plan referred to in subsection (a)'' and inserting in
lieu thereof ``A State drug interdiction and counter-drug
activities plan'';
(2) by striking out ``and'' at the end of paragraph (2);
and
(3) in paragraph (3)--
(A) by striking out ``annual training'' and inserting in
lieu thereof ``training'';
(B) by striking out the period at the end and inserting in
lieu thereof a semicolon; and
(C) by adding at the end the following new paragraphs:
``(4) include a certification by the Attorney General of
the State (or, in the case of a State with no position of
Attorney General, a civilian official of the State equivalent
to a State attorney general) that the use of the National
Guard of the State for the activities proposed under the plan
is authorized by, and is consistent with, State law; and
``(5) certify that the Governor of the State or a civilian
law enforcement official of the State designated by the
Governor has determined that any activities included in the
plan that are carried out in conjunction with Federal law
enforcement agencies serve a State law enforcement
purpose.''.
(d) Examination of State Plan.--Subsection (d) of such
section, as redesignated by subsection (b)(3), is amended--
(1) in paragraph (1)--
(A) by striking out ``subsection (b)'' and inserting in
lieu thereof ``subsection (c)''; and
(B) by inserting after ``Before funds are provided to the
Governor of a State under this section'' the following: ``and
before members of the National Guard of that State are
ordered to full-time National Guard duty as authorized in
subsection (b)''; and
(2) in paragraph (3)--
(A) in subparagraph (A), by striking out ``subsection (b)''
and inserting in lieu thereof ``subsection (c)''; and
(B) by striking out subparagraph (B) and inserting in lieu
thereof the following:
``(B) pursuant to the plan submitted for a previous fiscal
year, funds were provided to the State in accordance with
subsection (a) or personnel of the National Guard of the
State were ordered to perform full-time National Guard duty
in accordance with subsection (b).''.
(e) Use of Personnel Performing Full-Time National Guard
Duty.--Such section is further amended by inserting after
subsection (a) the following new subsection (b):
``(b) Use of Personnel Performing Full-Time National Guard
Duty.--Under regulations prescribed by the Secretary of
Defense, personnel of the National Guard of a State may, in
accordance with the State drug interdiction and counter-drug
activities plan referred to in subsection (c), be ordered to
perform full-time National Guard duty under section 502(f) of
this title for the purpose of carrying out drug interdiction
and counter-drug activities.''.
(f) End Strength Limitation.--Such section is further
amended by inserting after subsection (e) the following new
subsection (f):
``(f) End Strength Limitation.--(1) Except as provided in
paragraph (2), at the end of a fiscal year there may not be
more than 4000 members of the National Guard--
``(A) on full-time National Guard duty under section 502(f)
of this title to perform drug interdiction or counter-drug
activities pursuant to an order to duty for a period of more
than 180 days; or
``(B) on duty under State authority to perform drug
interdiction or counter-drug activities pursuant to an order
to duty for a period of more than 180 days with State pay and
allowances being reimbursed with funds provided under
subsection (a)(1).
``(2) The Secretary of Defense may increase the end
strength authorized under paragraph (1) by not more than 20
percent for any fiscal year if the Secretary determines that
such an increase is necessary in the national security
interests of the United States.''.
(g) Definitions.--Subsection (h) of such section, as
redesignated by subsection (b)(1), is amended by striking out
paragraph (1) and inserting in lieu thereof the following:
``(1) The term `drug interdiction and counter-drug
activities', with respect to the National Guard of a State,
means the use of National Guard personnel in drug
interdiction and counter-drug law enforcement activities
authorized by the law of the State and requested by the
Governor of the State.''.
(h) Technical Amendments.--Subsection (e) of such section
is amended--
(1) in paragraph (1), by striking out ``sections 517 and
524'' and inserting in lieu thereof ``sections 12011 and
12012''; and

[[Page H423]]

(2) in paragraph (2), by striking out ``the Committees on
Armed Services of the Senate and House of Representatives''
and inserting in lieu thereof ``the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives''.
Subtitle D--Civilian Personnel

SEC. 1031. MANAGEMENT OF DEPARTMENT OF DEFENSE CIVILIAN
PERSONNEL.

Section 129 of title 10, United States Code, is amended--
(1) in subsection (a)--
(A) by striking out ``man-year constraint or limitation''
and inserting in lieu thereof ``constraint or limitation in
terms of man years, end strength, full-time equivalent
positions, or maximum number of employees''; and
(B) by adding at the end the following new sentence: ``The
Secretary of Defense and the Secretaries of the military
departments may not be required to make a reduction in the
number of full-time equivalent positions in the Department of
Defense unless such reduction is necessary due to a reduction
in funds available to the Department or is required under a
law that is enacted after the date of the enactment of the
National Defense Authorization Act for Fiscal Year 1996 and
that refers specifically to this subsection.'';
(2) in subsection (b)(2), by striking out ``any end-
strength'' and inserting in lieu thereof ``any constraint
or limitation in terms of man years, end strength, full-
time equivalent positions, or maximum number of
employees''; and
(3) by adding at the end the following new subsection:
``(d) With respect to each budget activity within an
appropriation for a fiscal year for operations and
maintenance, the Secretary of Defense shall ensure that there
are employed during that fiscal year employees in the number
and with the combination of skills and qualifications that
are necessary to carry out the functions within that budget
activity for which funds are provided for that fiscal
year.''.

SEC. 1032. CONVERSION OF MILITARY POSITIONS TO CIVILIAN
POSITIONS.

(a) Conversion Requirement.--(1) By September 30, 1997, the
Secretary of Defense shall convert at least 10,000 military
positions to civilian positions.
(2) At least 3,000 of the military positions converted to
satisfy the requirement of paragraph (1) shall be converted
to civilian positions not later than September 30, 1996.
(3) In this subsection:
(A) The term ``military position'' means a position that,
as of the date of the enactment of this Act, is authorized to
be filled by a member of the Armed Forces on active duty.
(B) The term ``civilian position'' means a position that is
required to be filled by a civilian employee of the
Department of Defense.
(b) Implementation Plan.--Not later than March 31, 1996,
the Secretary of Defense shall submit to the Committee on
Armed Services of the Senate and the Committee on National
Security of the House of Representatives a plan for the
implementation of subsection (a).

SEC. 1033. ELIMINATION OF 120-DAY LIMITATION ON DETAILS OF
CERTAIN EMPLOYEES.

(a) Elimination of Limitation.--Subsection (b) of section
3341 of title 5, United States Code, is amended--
(1) by inserting ``(1)'' after ``(b)''; and
(2) by adding at the end the following:
``(2) The 120-day limitation in paragraph (1) for details
and renewals of details does not apply to the Department of
Defense in the case of a detail--
``(A) made in connection with the closure or realignment of
a military installation pursuant to a base closure law or an
organizational restructuring of the Department as part of a
reduction in the size of the armed forces or the civilian
workforce of the Department; and
``(B) in which the position to which the employee is
detailed is eliminated on or before the date of the closure,
realignment, or restructuring.
``(c) For purposes of this section--
``(1) the term `base closure law' means--
``(A) section 2687 of title 10;
``(B) title II of the Defense Authorization Amendments and
Base Closure and Realignment Act (10 U.S.C. 2687 note); and
``(C) the Defense Base Closure and Realignment Act of 1990
(10 U.S.C. 2687 note); and
``(2) the term `military installation'--
``(A) in the case of an installation covered by section
2687 of title 10, has the meaning given such term in
subsection (e)(1) of such section;
``(B) in the case of an installation covered by the Act
referred to in subparagraph (B) of paragraph (1), has the
meaning given such term in section 209(6) of such Act; and
``(C) in the case of an installation covered by the Act
referred to in subparagraph (C) of that paragraph, has the
meaning given such term in section 2910(4) of such Act.''.
(b) Applicability.--The amendments made by subsection (a)
apply to details made before the date of the enactment of
this Act but still in effect on that date and details made on
or after that date.

SEC. 1034. AUTHORITY FOR CIVILIAN EMPLOYEES OF DEPARTMENT OF
DEFENSE TO PARTICIPATE VOLUNTARILY IN
REDUCTIONS IN FORCE.

Section 3502 of title 5, United States Code, is amended by
adding at the end the following:
``(f)(1) The Secretary of Defense or the Secretary of a
military department may--
``(A) release in a reduction in force an employee who
volunteers for the release even though the employee is not
otherwise subject to release in the reduction in force under
the criteria applicable under the other provisions of this
section; and
``(B) for each employee voluntarily released in the
reduction in force under subparagraph (A), retain an employee
in a similar position who would otherwise be released in the
reduction in force under such criteria.
``(2) A voluntary release of an employee in a reduction in
force pursuant to paragraph (1) shall be treated as an
involuntary release in the reduction in force.
``(3) An employee with critical knowledge and skills (as
defined by the Secretary concerned) may not participate in a
voluntary release under paragraph (1) if the Secretary
concerned determines that such participation would impair the
performance of the mission of the Department of Defense or
the military department concerned.
``(4) The regulations prescribed under this section shall
incorporate the authority provided in this subsection.
``(5) The authority under paragraph (1) may not be
exercised after September 30, 1996.''.

SEC. 1035. AUTHORITY TO PAY SEVERANCE PAYMENTS IN LUMP SUMS.

Section 5595 of title 5, United States Code, is amended by
adding at the end the following:
``(i)(1) In the case of an employee of the Department of
Defense who is entitled to severance pay under this section,
the Secretary of Defense or the Secretary of the military
department concerned may, upon application by the employee,
pay the total amount of the severance pay to the employee in
one lump sum.
``(2)(A) If an employee paid severance pay in a lump sum
under this subsection is reemployed by the Government of the
United States or the government of the District of Columbia
at such time that, had the employee been paid severance pay
in regular pay periods under subsection (b), the payments of
such pay would have been discontinued under subsection (d)
upon such reemployment, the employee shall repay to the
Department of Defense (for the military department that
formerly employed the employee, if applicable) an amount
equal to the amount of severance pay to which the employee
was entitled under this section that would not have been paid
to the employee under subsection (d) by reason of such
reemployment.
``(B) The period of service represented by an amount of
severance pay repaid by an employee under subparagraph (A)
shall be considered service for which severance pay has not
been received by the employee under this section.
``(C) Amounts repaid to an agency under this paragraph
shall be credited to the appropriation available for the pay
of employees of the agency for the fiscal year in which
received. Amounts so credited shall be merged with, and shall
be available for the same purposes and the same period as,
the other funds in that appropriation.
``(3) If an employee fails to repay to an agency an amount
required to be repaid under paragraph (2)(A), that amount is
recoverable from the employee as a debt due the United
States.
``(4) This subsection applies with respect to severance pay
payable under this section for separations taking effect on
or after the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1996 and before October 1,
1999.''.

SEC. 1036. CONTINUED HEALTH INSURANCE COVERAGE.

Section 8905a(d)(4) of title 5, United States Code, is
amended--
(1) in subparagraph (A), by inserting ``, or a voluntary
separation from a surplus position,'' after ``an involuntary
separation from a position''; and
(2) by adding at the end the following new subparagraph:
``(C) For the purpose of this paragraph, `surplus position'
means a position which is identified in pre-reduction-in-
force planning as no longer required, and which is expected
to be eliminated under formal reduction-in-force
procedures.''.

SEC. 1037. REVISION OF AUTHORITY FOR APPOINTMENTS OF
INVOLUNTARILY SEPARATED MILITARY RESERVE
TECHNICIANS.

(a) Revision of Authority.--Section 3329 of title 5, United
States Code, as added by section 544 of the National Defense
Authorization Act for Fiscal Year 1993 (Public Law 102-484;
106 Stat. 2415), is amended--
(1) in subsection (b), by striking out ``be offered'' and
inserting in lieu thereof ``be provided placement
consideration in a position described in subsection (c)
through a priority placement program of the Department of
Defense''; and
(2) by striking out subsection (c) and inserting in lieu
thereof the following new subsection (c):
``(c)(1) The position for which placement consideration
shall be provided to a former military technician under
subsection (b) shall be a position--
``(A) in either the competitive service or the excepted
service;
``(B) within the Department of Defense; and
``(C) in which the person is qualified to serve, taking
into consideration whether the

[[Page H424]]
employee in that position is required to be a member of a reserve
component of the armed forces as a condition of employment.
``(2) To the maximum extent practicable, the position shall
also be in a pay grade or other pay classification sufficient
to ensure that the rate of basic pay of the former military
technician, upon appointment to the position, is not less
than the rate of basic pay last received by the former
military technician for technician service before
separation.''.
(b) Technical and Clerical Amendments.--(1) The section
3329 of title 5, United States Code, that was added by
section 4431 of the National Defense Authorization Act for
Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2719) is
redesignated as section 3330 of such title.
(2) The table of sections at the beginning of chapter 33 of
such title is amended by striking out the item relating to
section 3329, as added by section 4431(b) of such Act (106
Stat. 2720), and inserting in lieu thereof the following new
item:

``3330. Government-wide list of vacant positions.''.

SEC. 1038. WEARING OF UNIFORM BY NATIONAL GUARD TECHNICIANS.

(a) Requirement.--Section 709(b) of title 32, United States
Code, is amended to read as follows:
``(b) Except as prescribed by the Secretary concerned, a
technician employed under subsection (a) shall, while so
employed--
``(1) be a member of the National Guard;
``(2) hold the military grade specified by the Secretary
concerned for that position; and
``(3) wear the uniform appropriate for the member's grade
and component of the armed forces while performing duties as
a technician.''.
(b) Uniform Allowances for Officers.--Section 417 of title
37, United States Code, is amended by adding at the end the
following:
``(d)(1) For purposes of sections 415 and 416 of this
title, a period for which an officer of an armed force, while
employed as a National Guard technician, is required to wear
a uniform under section 709(b) of title 32 shall be treated
as a period of active duty (other than for training).
``(2) A uniform allowance may not be paid, and uniforms may
not be furnished, to an officer under section 1593 of title
10 or section 5901 of title 5 for a period of
employment referred to in paragraph (1) for which an
officer is paid a uniform allowance under section 415 or
416 of this title.''.
(c) Clothing or Allowances for Enlisted Members.--Section
418 of title 37, United States Code, is amended--
(1) by inserting ``(a)'' before ``The President''; and
(2) by adding at the end the following:
``(b) In determining the quantity and kind of clothing or
allowances to be furnished pursuant to regulations prescribed
under this section to persons employed as National Guard
technicians under section 709 of title 32, the President
shall take into account the requirement under subsection (b)
of such section for such persons to wear a uniform.
``(c) A uniform allowance may not be paid, and uniforms may
not be furnished, under section 1593 of title 10 or section
5901 of title 5 to a person referred to in subsection (b) for
a period of employment referred to in that subsection for
which a uniform allowance is paid under section 415 or 416 of
this title.''.

SEC. 1039. MILITARY LEAVE FOR MILITARY RESERVE TECHNICIANS
FOR CERTAIN DUTY OVERSEAS.

Section 6323 of title 5, United States Code, is amended by
adding at the end the following new subsection:
``(d)(1) A military reserve technician described in section
8401(30) is entitled at such person's request to leave
without loss of, or reduction in, pay, leave to which such
person is otherwise entitled, credit for time or service, or
performance or efficiency rating for each day, not to exceed
44 workdays in a calendar year, in which such person is on
active duty without pay, as authorized pursuant to section
12315 of title 10, under section 12301(b) or 12301(d) of
title 10 (other than active duty during a war or national
emergency declared by the President or Congress) for
participation in noncombat operations outside the United
States, its territories and possessions.
``(2) An employee who requests annual leave or compensatory
time to which the employee is otherwise entitled, for a
period during which the employee would have been entitled
upon request to leave under this subsection, may be granted
such annual leave or compensatory time without regard to this
section or section 5519.''.

SEC. 1040. PERSONNEL ACTIONS INVOLVING EMPLOYEES OF
NONAPPROPRIATED FUND INSTRUMENTALITIES.

(a) Clarification of Definition of Nonappropriated Fund
Instrumentality Employee.--Subsection (a)(1) of section 1587
of title 10, United States Code, is amended by adding at the
end the following new sentence: ``Such term includes a
civilian employee of a support organization within the
Department of Defense or a military department, such as the
Defense Finance and Accounting Service, who is paid from
nonappropriated funds on account of the nature of the
employee's duties.''.
(b) Direct Reporting of Violations.--Subsection (e) of such
section is amended in the second sentence by inserting before
the period the following: ``and to permit the reporting of
alleged violations of subsection (b) directly to the
Inspector General of the Department of Defense''.
(c) Technical Amendment.--Subsection (a)(1) of such section
is further amended by striking out ``Navy Resale and Services
Support Office'' and inserting in lieu thereof ``Navy
Exchange Service Command''.
(d) Clerical Amendments.--(1) The heading of such section
is amended to read as follows:

``Sec. 1587. Employees of nonappropriated fund
instrumentalities: reprisals''.

(2) The item relating to such section in the table of
sections at the beginning of chapter 81 of such title is
amended to read as follows:

``1587. Employees of nonappropriated fund instrumentalities:
reprisals.''.

SEC. 1041. COVERAGE OF NONAPPROPRIATED FUND EMPLOYEES UNDER
AUTHORITY FOR FLEXIBLE AND COMPRESSED WORK
SCHEDULES.

Paragraph (2) of section 6121 of title 5, United States
Code, is amended to read as follows:
``(2) `employee' has the meaning given the term in
subsection (a) of section 2105 of this title, except that
such term also includes an employee described in subsection
(c) of that section;''.

SEC. 1042. LIMITATION ON PROVISION OF OVERSEAS LIVING
QUARTERS ALLOWANCES FOR NONAPPROPRIATED FUND
INSTRUMENTALITY EMPLOYEES.

(a) Conforming Allowance to Allowances for Other Civilian
Employees.--Subject to subsection (b), an overseas living
quarters allowance paid from nonappropriated funds and
provided to a nonappropriated fund instrumentality employee
after the date of the enactment of this Act may not exceed
the amount of a quarters allowance provided under subchapter
III of chapter 59 of title 5 to a similarly situated civilian
employee of the Department of Defense paid from appropriated
funds.
(b) Application to Certain Current Employees.--In the case
of a nonappropriated fund instrumentality employee who, as of
the date of the enactment of this Act, receives an overseas
living quarters allowance under any other authority,
subsection (a) shall apply to such employee only after the
earlier of--
(1) September 30, 1997; or
(2) the date on which the employee otherwise ceases to be
eligible for such an allowance under such other authority.
(c) Nonappropriated Fund Instrumentality Employee
Defined.--For purposes of this section, the term
``nonappropriated fund instrumentality employee'' has the
meaning given such term in section 1587(a)(1) of title 10,
United States Code.

SEC. 1043. ELECTIONS RELATING TO RETIREMENT COVERAGE.

(a) In General.--
(1) Civil service retirement system.--Section 8347(q) of
title 5, United States Code, is amended--
(A) in paragraph (1)--
(i) by striking ``of the Department of Defense or the Coast
Guard'' in the matter before subparagraph (A); and
(ii) by striking ``3 days'' and inserting ``1 year''; and
(B) in paragraph (2)(C)--
(i) by striking ``3 days'' and inserting ``1 year''; and
(ii) by striking ``in the Department of Defense or the
Coast Guard, respectively,''.
(2) Federal employees' retirement system.--Section 8461(n)
of title 5, United States Code, is amended--
(A) in paragraph (1)--
(i) by striking ``of the Department of Defense or the Coast
Guard'' in the matter before subparagraph (A); and
(ii) by striking ``3 days'' and inserting ``1 year''; and
(B) in paragraph (2)(C)--
(i) by striking ``3 days'' and inserting ``1 year''; and
(ii) by striking ``in the Department of Defense or the
Coast Guard, respectively,''.
(b) Regulations.--Not later than 6 months after the date of
the enactment of this Act, the Office of Personnel Management
(and each of the other administrative authorities, within the
meaning of subsection (c)(2)(C)(iii)) shall prescribe any
regulations (or make any modifications in existing
regulations) necessary to carry out this section and the
amendments made by this section, including regulations to
provide for the notification of individuals who may be
affected by the enactment of this section. All regulations
(and modifications to regulations) under the preceding
sentence shall take effect on the same date.
(c) Applicability; Related Provisions.--
(1) Prospective rules.--Except as otherwise provided in
this subsection, the amendments made by this section shall
apply with respect to moves occurring on or after the
effective date of the regulations under subsection (b). Moves
occurring on or after the date of the enactment of this Act
and before the effective date of such regulations shall be
subject to applicable provisions of title 5, United States
Code, disregarding the amendments made by this section,
except that any individual making an election pursuant to
this sentence shall be ineligible to make an election
otherwise allowable under paragraph (2).
(2) Retroactive rules.--
(A) In general.--The regulations under subsection (b) shall
include provisions for the application of sections 8347(q)
and 8461(n)

[[Page H425]]
of title 5, United States Code, as amended by this section, with
respect to any individual who, at any time after December 31,
1965, and before the effective date of such regulations,
moved between positions in circumstances that would have
qualified such individual to make an election under the
provisions of such section 8347(q) or 8461(n), as so amended,
if such provisions had then been in effect.
(B) Deadline; related provisions.--An election pursuant to
this paragraph--
(i) shall be made within 1 year after the effective date of
the regulations under subsection (b), and
(ii) shall have the same force and effect as if it had been
timely made at the time of the move,

except that no such election may be made by any individual--
(I) who has previously made, or had an opportunity to make,
an election under section 8347(q) or 8461(n) of title 5,
United States Code (as in effect before being amended by this
section); however, this subclause shall not be considered to
render an individual ineligible, based on an opportunity
arising out of a move occurring during the period described
in the second sentence of paragraph (1), if no election has
in fact been made by such individual based on such move;
(II) who has not, since the move on which eligibility for
the election is based, remained continuously subject
(disregarding any break in service of less than 3 days) to
CSRS or FERS or both seriatim (if the move was from a NAFI
position) or any retirement system (or 2 or more such systems
seriatim) established for employees described in section
2105(c) of such title (if the move was to a NAFI position);
or
(III) if such election would be based on a move to the
Civil Service Retirement System from a retirement system
established for employees described in section 2105(c) of
such title.
(C) Transfers of contributions.--
(i) In general.--If an individual makes an election under
this paragraph to be transferred back to a retirement system
in which such individual previously participated (in this
section referred to as the ``previous system''), all
individual contributions (including interest) and Government
contributions to the retirement system in which such
individual is then currently participating (in this section
referred to as the ``current system''), excluding those made
to the Thrift Savings Plan or any other defined contribution
plan, which are attributable to periods of service performed
since the move on which the election is based, shall be
paid to the fund, account, or other repository for
contributions made under the previous system. For purposes
of this section, the term ``current system'' shall be
considered also to include any retirement system (besides
the one in which the individual is participating at the
time of making the election) in which such individual
previously participated since the move on which the
election is based.
(ii) Condition subsequent relating to repayment of lump-sum
credit.--In the case of an individual who has received such
individual's lump-sum credit (within the meaning of section
8401(19) of title 5, United States Code, or a similar
payment) from such individual's previous system, the payment
described in clause (i) shall not be made (and the election
to which it relates shall be ineffective) unless such lump-
sum credit is redeposited or otherwise paid at such time and
in such manner as shall be required under applicable
regulations. Regulations to carry out this clause shall
include provisions for the computation of interest
(consistent with section 8334(e) (2) and (3) of title 5,
United States Code), if no provisions for such computation
otherwise exist.
(iii) Condition subsequent relating to deficiency in
payments relative to amounts needed to ensure that benefits
are fully funded.--

(I) In general.--Except as provided in subclause (II), the
payment described in clause (i) shall not be made (and the
election to which it relates shall be ineffective) if the
actuarial present value of the future benefits that would be
payable under the previous system with respect to service
performed by such individual after the move on which the
election under this paragraph is based and before the
effective date of the election, exceeds the total amounts
required to be transferred to the previous system under the
preceding provisions of this subparagraph with respect to
such service, as determined by the authority administering
such previous system (in this section referred to as the
``administrative authority'').
(II) Payment of deficiency.--A determination of a
deficiency under this clause shall not render an election
ineffective if the individual pays or arranges to pay, at a
time and in a manner satisfactory to such administrative
authority, the full amount of the deficiency described in
subclause (I).

(D) Alternative election for an individual then
participating in fers.--
(i) Applicability.--This subparagraph applies with respect
to any individual who--

(I) is then currently participating in FERS; and
(II) would then otherwise be eligible to make an election
under subparagraphs (A) through (C) of this paragraph,
determined disregarding the matter in subclause (I) of
subparagraph (B) before the first semicolon therein.

(ii) Election.--An individual described in clause (i) may,
instead of making an election for which such individual is
otherwise eligible under this paragraph, elect to have all
prior qualifying NAFI service of such individual treated as
creditable service for purposes of any annuity under FERS
payable out of the Civil Service Retirement and Disability
Fund.
(iii) Qualifying nafi service.--For purposes of this
subparagraph, the term ``qualifying NAFI service'' means any
service which, but for this subparagraph, would be creditable
for purposes of any retirement system established for
employees described in section 2105(c) of title 5, United
States Code.
(iv) Service ceases to be creditable for nafi retirement
system purposes.--Any qualifying NAFI service that becomes
creditable for FERS purposes by virtue of an election made
under this subparagraph shall not be creditable for purposes
of any retirement system referred to in clause (iii).
(v) Conditions.--An election under this subparagraph shall
be subject to requirements, similar to those set forth in
subparagraph (C), to ensure that--

(I) appropriate transfers of individual and Government
contributions are made to the Civil Service Retirement and
Disability Fund; and
(II) the actuarial present value of future benefits under
FERS attributable to service made creditable by such election
is fully funded.

(E) Alternative election for an individual then
participating in a nafi retirement system.--
(i) Applicability.--This subparagraph applies with respect
to any individual who--

(I) is then currently participating in any retirement
system established for employees described in section 2105(c)
of title 5, United States Code (in this subparagraph referred
to as a ``NAFI retirement system''); and
(II) would then otherwise be eligible to make an election
under subparagraphs (A) through (C) of this paragraph
(determined disregarding the matter in subclause (I) of
subparagraph (B) before the first semicolon therein) based on
a move from FERS.

(ii) Election.--An individual described in clause (i) may,
instead of making an election for which such individual is
otherwise eligible under this paragraph, elect to have all
prior qualifying FERS service of such individual treated as
creditable service for purposes of determining eligibility
for benefits under a NAFI retirement system, but not for
purposes of computing the amount of any such benefits except
as provided in clause (v)(II).
(iii) Qualifying fers service.--For purposes of this
subparagraph, the term ``qualifying FERS service'' means any
service which, but for this subparagraph, would be creditable
for purposes of the Federal Employees' Retirement System.
(iv) Service ceases to be creditable for purposes of
fers.--Any qualifying FERS service that becomes creditable
for NAFI purposes by virtue of an election made under this
subparagraph shall not be creditable for purposes of the
Federal Employees' Retirement System.
(v) Funding requirements.--

(I) In general.--Except as provided in subclause (II),
nothing in this section or in any other provision of law or
any other authority shall be considered to require any
payment or transfer of monies in order for an election under
this subparagraph to be effective.
(II) Contribution required only if individual elects to
have service made creditable for computation purposes as
well.--Under regulations prescribed by the appropriate
administrative authority, an individual making an election
under this subparagraph may further elect to have the
qualifying FERS service made creditable for
computation purposes under a NAFI retirement system, but
only if the individual pays or arranges to pay, at a time
and in a manner satisfactory to such administrative
authority, the amount necessary to fully fund the
actuarial present value of future benefits under the NAFI
retirement system attributable to the qualifying FERS
service.
(3) Information.--The regulations under subsection (b)
shall include provisions under which any individual--
(A) shall, upon request, be provided information or
assistance in determining whether such individual is eligible
to make an election under paragraph (2) and, if so, the exact
amount of any payment which would be required of such
individual in connection with any such election; and
(B) may seek any other information or assistance relating
to any such election.
(d) Creditability of NAFI Service for RIF Purposes.--
(1) In general.--Clause (ii) of section 3502(a)(C) of title
5, United States Code, is amended by striking ``January 1,
1987'' and inserting ``January 1, 1966''.
(2) Effective date.--Notwithstanding any provision of
subsection (c), the amendment made by paragraph (1) shall--
(A) take effect on the date of the enactment of this Act;
and
(B) apply with respect to any reduction in force carried
out on or after such date.

SEC. 1044. EXTENSION OF TEMPORARY AUTHORITY TO PAY CIVILIAN
EMPLOYEES WITH RESPECT TO THE EVACUATION FROM
GUANTANAMO, CUBA.

(a) Extension of Authority.--The Secretary of Defense may,
until the end of January 31, 1996, and without regard to the
time limitations specified in subsection (a) of section 5523
of title 5, United States Code, make

[[Page H426]]
payments under the provisions of such section from funds available for
the pay of civilian personnel in the case of employees, or an
employee's dependents or immediate family, evacuated from
Guantanamo Bay, Cuba, pursuant to the August 26, 1994 order
of the Secretary. This section shall take effect as of
October 1, 1995, and shall apply with respect to payments
made for periods occurring on or after that date.
(b) Monthly Report.--On the first day of each month
beginning after the date of the enactment of this Act and
ending before March 1996, the Secretary of the Navy shall
transmit to the Committee on Armed Services of the Senate and
the Committee on National Security of the House of
Representatives a report regarding the payment of employees
pursuant to subsection (a). Each such report shall include,
for the month preceding the month in which the report is
transmitted, a statement of the following:
(1) The number of the employees paid pursuant to such
section.
(2) The positions of employment of the employees.
(3) The number and location of the employees' dependents
and immediate families.
(4) The actions taken by the Secretary to eliminate the
conditions which necessitated the payments.
Subtitle E--Miscellaneous Reporting Requirements

SEC. 1051. REPORT ON FISCAL YEAR 1997 BUDGET SUBMISSION
REGARDING GUARD AND RESERVE COMPONENTS.

(a) Report.--The Secretary of Defense shall submit to the
congressional defense committees, at the same time that the
President submits the budget for fiscal year 1997 under
section 1105(a) of title 31, United States Code, a report on
amounts requested in that budget for the Guard and Reserve
components.
(b) Content.--The report shall include the following:
(1) A description of the anticipated effect that the
amounts requested (if approved by Congress) will have to
enhance the capabilities of each of the Guard and Reserve
components.
(2) A listing, with respect to each such component, of each
of the following:
(A) The amount requested for each major weapon system for
which funds are requested in the budget for that component.
(B) The amount requested for each item of equipment (other
than a major weapon system) for which funds are requested in
the budget for that component.
(C) The amount requested for each military construction
project, together with the location of each such project, for
which funds are requested in the budget for that component.
(c) Inclusion of Information in Next FYDP.--The Secretary
of Defense shall specifically display in the next future-
years defense program (or program revision) submitted to
Congress after the date of the enactment of this Act the
amounts programmed for procurement of equipment and for
military construction for each of the Guard and Reserve
components.
(d) Definition.--For purposes of this section, the term
``Guard and Reserve components'' means the following:
(1) The Army Reserve.
(2) The Army National Guard of the United States.
(3) The Naval Reserve.
(4) The Marine Corps Reserve.
(5) The Air Force Reserve.
(6) The Air National Guard of the United States.

SEC. 1052. REPORT ON DESIRABILITY AND FEASIBILITY OF
PROVIDING AUTHORITY FOR USE OF FUNDS DERIVED
FROM RECOVERED LOSSES RESULTING FROM CONTRACTOR
FRAUD.

(a) Report.--Not later than April 1, 1996, the Secretary of
Defense shall submit to Congress a report on the
desirability and feasibility of authorizing by law the
retention and use by the Department of Defense of a
specified portion (not to exceed three percent) of amounts
recovered by the Government during any fiscal year from
losses and expenses incurred by the Department of Defense
as a result of contractor fraud at military installations.
(b) Matters To Be Included.--The report shall include the
views of the Secretary of Defense regarding--
(1) the degree to which such authority would create
enhanced incentives for the discovery, investigation, and
resolution of contractor fraud at military installations; and
(2) the appropriate allocation for funds that would be
available for expenditure pursuant to such authority.

SEC. 1053. REPORT OF NATIONAL POLICY ON PROTECTING THE
NATIONAL INFORMATION INFRASTRUCTURE AGAINST
STRATEGIC ATTACKS.

Not later than 120 days after the date of the enactment of
this Act, the President shall submit to Congress a report
setting forth the results of a review of the national policy
on protecting the national information infrastructure against
strategic attacks. The report shall include the following:
(1) A description of the national policy and architecture
governing the plans for establishing procedures,
capabilities, systems, and processes necessary to perform
indications, warning, and assessment functions regarding
strategic attacks by foreign nations, groups, or individuals,
or any other entity against the national information
infrastructure.
(2) An assessment of the future of the National
Communications System (NCS), which has performed the central
role in ensuring national security and emergency preparedness
communications for essential United States Government and
private sector users, including a discussion of--
(A) whether there is a Federal interest in expanding or
modernizing the National Communications System in light of
the changing strategic national security environment and the
revolution in information technologies; and
(B) the best use of the National Communications System and
the assets and experience it represents as an integral part
of a larger national strategy to protect the United States
against a strategic attack on the national information
infrastructure.

SEC. 1054. REPORT ON DEPARTMENT OF DEFENSE BOARDS AND
COMMISSIONS.

(a) Study.--The Secretary of Defense shall conduct a study
of the boards and commissions described in subsection (c). As
part of such study, the Secretary shall determine, with
respect to each such board or commission that received
support from the Department of Defense during fiscal year
1995, whether that board or commission merits continued
support from the Department.
(b) Report.--Not later than April 1, 1996, the Secretary
shall submit to the Committee on Armed Services of the Senate
and the Committee on National Security of the House of
Representatives a report on the results of the study. The
report shall include the following:
(1) A list of each board and commission described in
subsection (c) that received support from the Department of
Defense during fiscal year 1995.
(2) With respect to the boards and commissions specified on
the list under paragraph (1)--
(A) a list of each such board or commission concerning
which the Secretary determined under subsection (a) that
continued support from the Department of Defense is merited;
and
(B) a list of each such board or commission concerning
which the Secretary determined under subsection (a) that
continued support from the Department if not merited.
(3) For each board and commission specified on the list
under paragraph (2)(A), a description of--
(A) the purpose of the board or commission;
(B) the nature and cost of the support provided by the
Department to the board or commission during fiscal year
1995;
(C) the nature and duration of the support that the
Secretary proposes to provide to the board or commission;
(D) the anticipated cost to the Department of providing
such support; and
(E) a justification of the determination that the board or
commission merits the continued support of the Department.
(4) For each board and commission specified on the list
under paragraph (2)(B), a description of--
(A) the purpose of the board or commission;
(B) the nature and cost of the support provided by the
Department to the board or commission during fiscal year
1995; and
(C) a justification of the determination that the board or
commission does not merit the continued support of the
Department.
(c) Covered Boards and Commissions.--Subsection (a) applies
to any board or commission (including any board or commission
authorized by law) that operates within or for the Department
of Defense and that--
(1) provides only policy-making assistance or advisory
services for the Department; or
(2) carries out only activities that are not routine
activities, on-going activities, or activities necessary to
the routine, on-going operations of the Department.
(d) Support Defined.--For purposes of this section, the
term ``support'' includes the provision of any of the
following:
(1) Funds.
(2) Equipment, materiel, or other assets.
(3) Services of personnel.

SEC. 1055. DATE FOR SUBMISSION OF ANNUAL REPORT ON SPECIAL
ACCESS PROGRAMS.

Section 119(a) of title 10, United States Code, is amended
by striking out ``February 1'' and inserting in lieu thereof
``March 1''.
Subtitle F--Repeal of Certain Reporting and Other Requirements and
Authorities

SEC. 1061. REPEAL OF MISCELLANEOUS PROVISIONS OF LAW.

(a) Volunteers Investing in Peace and Security Program.--
(1) Chapter 89 of title 10, United States Code, is repealed.
(2) The tables of chapters at the beginning of subtitle A,
and at the beginning of part II of subtitle A, of such title
are each amended by striking out the item relating to chapter
89.
(b) Security and Control of Supplies.--(1) Chapter 171 of
such title is repealed.
(2) The tables of chapters at the beginning of subtitle A,
and at the beginning of part IV of subtitle A, of such title
are each amended by striking out the item relating to chapter
171.
(c) Annual Authorization of Military Training Student
Loads.--Section 115 of such title is amended--
(1) in subsection (a), by striking out paragraph (3);
(2) in subsection (b)--
(A) by inserting ``or'' at the end of paragraph (1);

[[Page H427]]

(B) by striking out ``; or'' at the end of paragraph (2)
and inserting in lieu thereof a period; and
(C) by striking out paragraph (3); and
(3) by striking out subsection (f).
(d) Portions of Annual Manpower Requirements Report.--
Section 115a of such title is amended--
(1) in subsection (b)(2), by striking out subparagraph (C);
(2) by striking out subsection (d);
(3) by redesignating subsection (e) as subsection (d) and
striking out paragraphs (4) and (5) thereof;
(4) by striking out subsection (f); and
(5) by redesignating subsection (g) as subsection (e).
(e) Obsolete Authority for Payment of Stipends for Members
of Certain Advisory Committees and Boards of Visitors of
Service Academies.--(1) The second sentence of each of
sections 173(b) and 174(b) of such title is amended to read
as follows: ``Other members and part-time advisers shall
(except as otherwise specifically authorized by law) serve
without compensation for such service.''.
(2) Sections 4355(h), 6968(h), and 9355(h) of such title
are amended by striking out ``is entitled to not more than $5
a day and''.
(f) Annual Budget Information Concerning Recruiting
Costs.--(1) Section 227 of such title is repealed.
(2) The table of sections at the beginning of chapter 9 of
such title is amended by striking out the item relating to
section 227.
(g) Expired Authority Relating to Peacekeeping
Activities.--(1) Section 403 of such title is repealed.
(2) The table of sections at the beginning of subchapter I
of chapter 20 of such title is amended by striking out the
item relating to section 403.
(h) Procurement of Gasohol for Department of Defense Motor
Vehicles.--(1) Subsection (a) of section 2398 of such title
is repealed.
(2) Such section is further amended--
(A) by redesignating subsections (b) and (c) as subsections
(a) and (b), respectively; and
(B) in subsection (b), as so redesignated, by striking out
``subsection (b)'' and inserting in lieu thereof ``subsection
(a)''.
(i) Requirement of Notice of Certain Disposals and Gifts by
Secretary of Navy.--Section 7545 of such title is amended--
(1) by striking out subsection (c); and
(2) by redesignating subsection (d) as subsection (c).
(j) Annual Report on Biological Defense Research Program.--
(1) Section 2370 of such title is repealed.
(2) The table of sections at the beginning of chapter 139
of such title is amended by striking out the item relating to
such section.
(k) Reports and Notifications Relating to Chemical and
Biological Agents.--Subsection (a) of section 409 of Public
Law 91-121 (50 U.S.C. 1511) is repealed.
(l) Annual Report on Balanced Technology Initiative.--
Subsection (e) of section 211 of the National Defense
Authorization Act for Fiscal Years 1990 and 1991 (Public Law
101-189; 103 Stat. 1394) is repealed.
(m) Report on Environmental Restoration Costs for
Installations To Be Closed Under 1990 Base Closure Law.--
Section 2827 of the National Defense Authorization Act for
Fiscal Years 1992 and 1993 (Public Law 102-190; 10 U.S.C.
2687 note) is amended by striking out subsection (b).
(n) Limitation on American Diplomatic Facilities in
Germany.--Section 1432 of the National Defense Authorization
Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1833)
is repealed.

SEC. 1062. REPORTS REQUIRED BY TITLE 10, UNITED STATES CODE.

(a) Annual Report on Relocation Assistance Programs.--
Section 1056 of title 10, United States Code, is amended--
(1) by striking out subsection (f); and
(2) by redesignating subsection (g) as subsection (f).
(b) Notice of Salary Increases for Foreign National
Employees.--Section 1584 of such title is amended--
(1) by striking out subsection (b); and
(2) in subsection (a), by striking out ``(a) Waiver of
Employment Restrictions for Certain Personnel.--''.
(c) Notice Regarding Contracts Performed for Periods
Exceeding 10 Years.--(1) Section 2352 of such title is
repealed.
(2) The table of sections at the beginning of chapter 139
of such title is amended by striking out the item relating to
section 2352.
(d) Report on Low-Rate Production Under Naval Vessel and
Military Satellite Programs.--Section 2400(c) of such title
is amended--
(1) by striking out paragraph (2); and
(2) in paragraph (1)--
(A) by striking out ``(1)''; and
(B) by redesignating clauses (A) and (B) as clauses (1) and
(2), respectively.
(e) Report on Waivers of Prohibition on Employment of
Felons.--Section 2408(a)(3) of such title is amended by
striking out the second sentence.
(f) Report on Determination Not To Debar for Fraudulent Use
of Labels.--Section 2410f(a) of such title is amended by
striking out the second sentence.
(g) Notice of Military Construction Contracts on Guam.--
Section 2864(b) of such title is amended by striking out
``after the 21-day period'' and all that follows through
``determination''.

SEC. 1063. REPORTS REQUIRED BY DEFENSE AUTHORIZATION AND
APPROPRIATIONS ACTS.

(a) Public Law 99-661 Requirement for Report on Funding for
Nicaraguan Democratic Resistance.--Section 1351 of the
National Defense Authorization Act for Fiscal Year 1987
(Public Law 99-661; 100 Stat. 3995; 10 U.S.C. 114 note) is
amended--
(1) by striking out subsection (b); and
(2) in subsection (a), by striking out ``(a) Limitation.--
''.
(b) Annual Report on Overseas Military Facility Investment
Recovery Account.--Section 2921 of the Military Construction
Authorization Act for Fiscal Year 1991 (division B of Public
Law 101-510; 10 U.S.C. 2687 note) is amended--
(1) by striking out subsection (f); and
(2) by redesignating subsections (g) and (h) as subsections
(f) and (g), respectively.
(c) Science, Mathematics, and Engineering Education Master
Plan.--Section 829 of the National Defense Authorization Act
for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat.
1444; 10 U.S.C. 2192 note) is repealed.
(d) Report Regarding Heating Facility Modernization at
Kaiserslautern.--Section 8008 of the Department of Defense
Appropriations Act, 1994 (Public Law 103-139; 107 Stat.
1438), is amended by inserting ``but without regard to the
notification requirement in subsection (b)(2) of such
section,'' after ``section 2690 of title 10, United States
Code,''.

SEC. 1064. REPORTS REQUIRED BY OTHER PROVISIONS OF LAW.

(a) Requirement Under Arms Export Control Act for Quarterly
Report on Price and Availability Estimates.--Section 28 of
the Arms Export Control Act (22 U.S.C. 2768) is repealed.
(b) Annual Report on National Security Agency Executive
Personnel.--Section 12(a) of the National Security Agency Act
of 1959 (50 U.S.C. 402 note) is amended by striking out
paragraph (5).
(c) Reports Concerning Certain Federal Contracting and
Financial Transactions.--Section 1352 of title 31, United
States Code, is amended--
(1) in subsection (b)(6)(A), by inserting ``(other than the
Secretary of Defense and Secretary of a military
department)'' after ``The head of each agency''; and
(2) in subsection (d)(1), by inserting ``(other than in the
case of the Department of Defense or a military department)''
after ``paragraph (3) of this subsection''.
(d) Annual Report on Water Resources Project Agreements.--
Section 221 of the Flood Control Act of 1970 (42 U.S.C.
1962d-5b) is amended--
(1) by striking out subsection (e); and
(2) by redesignating subsection (f) as subsection (e).
(e) Annual Report on Construction of Tennessee-Tombigbee
Waterway.--Section 185 of the Water Resources Development Act
of 1976 (33 U.S.C. 544c) is amended by striking out the
second sentence.
(f) Annual Report on Monitoring of Navy Home Port Waters.--
Section 7 of the Organotin Antifouling Paint Control Act of
1988 (33 U.S.C. 2406) is amended--
(1) by striking out subsection (d); and
(2) by redesignating subsections (e) and (f) as subsections
(d) and (e), respectively.
Subtitle G--Department of Defense Education Programs

SEC. 1071. CONTINUATION OF UNIFORMED SERVICES UNIVERSITY OF
THE HEALTH SCIENCES.

(a) Policy.--Congress reaffirms--
(1) the prohibition set forth in subsection (a) of section
922 of the National Defense Authorization Act for Fiscal Year
1995 (Public Law 103-337; 108 Stat. 2829; 10 U.S.C. 2112
note) regarding closure of the Uniformed Services University
of the Health Sciences; and
(2) the expression of the sense of Congress set forth in
subsection (b) of such section regarding the budgetary
commitment to continuation of the university.
(b) Personnel Strength.--During the five-year period
beginning on October 1, 1995, the personnel staffing levels
for the Uniformed Services University of the Health Services
may not be reduced below the personnel staffing levels for
the university as of October 1, 1993.
(c) Budgetary Commitment to Continuation.--It is the sense
of Congress that the Secretary of Defense should budget for
the operation of the Uniformed Services University of the
Health Sciences during fiscal year 1997 at a level at least
equal to the level of operations conducted at the University
during fiscal year 1995.

SEC. 1072. ADDITIONAL GRADUATE SCHOOLS AND PROGRAMS AT
UNIFORMED SERVICES UNIVERSITY OF THE HEALTH
SCIENCES.

(a) Additional Schools and Programs.--Subsection (h) of
section 2113 of title 10, United States Code, is amended to
read as follows:
``(h) The Secretary of Defense may establish the following
educational programs at the University:
``(1) Postdoctoral, postgraduate, and technological
institutes.
``(2) A graduate school of nursing.
``(3) Other schools or programs that the Secretary
determines necessary in order to operate the University in a
cost-effective manner.''.
(b) Conforming Amendments To Reflect Advisory Nature of
Board of Regents.--(1) Section 2112(b) of such title is
amended by

[[Page H428]]
striking out ``, upon recommendation of the Board of Regents,''.
(2) Section 2113 of such title is amended--
(A) in subsection (a)--
(i) by striking out ``a Board of Regents (hereinafter in
this chapter referred to as the `Board')'' in the first
sentence and inserting in lieu thereof ``the Secretary of
Defense''; and
(ii) by inserting after the first sentence the following
new sentence: ``To assist the Secretary in an advisory
capacity, there is a Board of Regents for the University.'';
(B) in subsection (d), by striking out ``Board'' the first
place it appears and inserting in lieu thereof ``Secretary'';
(C) in subsection (e), by striking out ``of Defense'';
(D) in subsection (f)(1), by striking out ``of Defense'';
(E) in subsection (g)--
(i) by striking out ``Board is authorized to'' in the first
sentence and inserting in lieu thereof ``Secretary may'';
(ii) by striking out ``Board is also authorized to'' in the
third sentence and inserting in lieu thereof ``Secretary
may''; and
(iii) by striking out ``Board may also, subject to the
approval of the Secretary of Defense,'' in the fifth sentence
and inserting in lieu thereof ``Secretary may''; and
(F) by striking out ``Board'' each place it appears in
subsections (f), (i), and (j) and inserting in lieu thereof
``Secretary''.
(3) Section 2114(e)(1) of such title is amended by striking
out ``Board, upon approval of the Secretary of Defense,'' and
inserting in lieu thereof ``Secretary of Defense''.
(c) Clerical Amendments.--(1) The heading of section 2113
of such title is amended to read as follows:

``Sec. 2113. Administration of University''.

(2) The item relating to such section in the table of
sections at the beginning of chapter 104 of such title is
amended to read as follows:

``2113. Administration of University.''.

SEC. 1073. FUNDING FOR ADULT EDUCATION PROGRAMS FOR MILITARY
PERSONNEL AND DEPENDENTS OUTSIDE THE UNITED
STATES.

Of amounts appropriated pursuant to section 301, $600,000
shall be available to carry out adult education programs,
consistent with the Adult Education Act (20 U.S.C. 1201 et
seq.), for the following:
(1) Members of the Armed Forces who are serving in
locations--
(A) that are outside the United States; and
(B) for which amounts are not required to be allotted under
section 313(b) of such Act (20 U.S.C. 1201b(b)).
(2) The dependents of such members.

SEC. 1074. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT
BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED
FORCES AND DEPARTMENT OF DEFENSE CIVILIAN
EMPLOYEES.

(a) Continuation of Department of Defense Program for
Fiscal Year 1996.--(1) Of the amounts authorized to be
appropriated in section 301(5)--
(A) $30,000,000 shall be available for providing
educational agencies assistance (as defined in paragraph
(4)(A)) to local educational agencies; and
(B) $5,000,000 shall be available for making educational
agencies payments (as defined in paragraph (4)(B)) to local
educational agencies.
(2) Not later than June 30, 1996, the Secretary of Defense
shall--
(A) notify each local educational agency that is eligible
for educational agencies assistance for fiscal year 1996 of
that agency's eligibility for such assistance and the amount
of such assistance for which that agency is eligible; and
(B) notify each local educational agency that is eligible
for an educational agencies payment for fiscal year 1996 of
that agency's eligibility for such payment and the amount of
the payment for which that agency is eligible.
(3) The Secretary of Defense shall disburse funds made
available under subparagraphs (A) and (B) of paragraph (1)
not later than 30 days after the date on which notification
to the eligible local educational agencies is provided
pursuant to paragraph (2).
(4) In this section:
(A) The term ``educational agencies assistance'' means
assistance authorized under subsection (b) of section 386 of
the National Defense Authorization Act for Fiscal Year 1993
(Public Law 102-484; 20 U.S.C. 238 note).
(B) The term ``educational agencies payments'' means
payments authorized under subsection (d) of that section, as
amended by subsection (d).
(b) Special Rule for 1994 Payments.--The Secretary of
Education shall not consider any payment to a local
educational agency by the Department of Defense, that is
available to such agency for current expenditures and used
for capital expenses, as funds available to such agency for
purposes of making a determination for fiscal year 1994 under
section 3(d)(2)(B)(i) of the Act of September 30, 1950
(Public Law 874, 81st Congress) (as such Act was in effect on
September 30, 1994).
(c) Reduction in Impact Threshold.--Subsection (c)(1) of
section 386 of the National Defense Authorization Act for
Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 note) is
amended--
(1) by striking out ``30 percent'' and inserting in lieu
thereof ``20 percent''; and
(2) by striking out ``counted under subsection (a) or (b)
of section 3 of the Act of September 30, 1950 (Public Law
874, Eighty-first Congress; 20 U.S.C. 238)'' and inserting in
lieu thereof ``counted under section 8003(a) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7703(a))''.
(d) Adjustments Related to Base Closures and
Realignments.--Subsection (d) of section 386 of the National
Defense Authorization Act for Fiscal Year 1993 (Public Law
102-484; 28 U.S.C. 238 note) is amended to read as follows:
``(d) Adjustments Related to Base Closures and
Realignments.--To assist communities in making adjustments
resulting from reductions in the size of the Armed Forces,
the Secretary of Defense shall, in consultation with the
Secretary of Education, make payments to local educational
agencies that, during the period between the end of the
school year preceding the fiscal year for which the payments
are authorized and the beginning of the school year
immediately preceding that school year, had an overall
reduction of not less than 20 percent in the number of
military dependent students as a result of the closure or
realignment of military installations.''.
(e) Extension of Reporting Requirement.--Subsection (e)(1)
of section 386 of the National Defense Authorization Act for
Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 note) is
amended by striking out ``and 1995'' and inserting in lieu
thereof ``1995, and 1996''.
(f) Payments for Eligible Federally Connected Children.--
Subsection (f) of section 8003 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703) is amended--
(1) in paragraph (2)--
(A) in the matter preceding clause (i) of subparagraph (A),
by striking ``only if such agency'' and inserting ``if such
agency is eligible for a supplementary payment in accordance
with subparagraph (B) or such agency''; and
(B) by adding at the end the following new subparagraph:
``(D) A local educational agency shall only be eligible to
receive additional assistance under this subsection if the
Secretary determines that--
``(i) such agency is exercising due diligence in availing
itself of State and other financial assistance; and
``(ii) the eligibility of such agency under State law for
State aid with respect to the free public education of
children described in subsection (a)(1) and the amount of
such aid are determined on a basis no less favorable to such
agency than the basis used in determining the eligibility of
local educational agencies for State aid, and the amount of
such aid, with respect to the free public education of other
children in the State.''; and
(2) in paragraph (3)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by inserting
``(other than any amount received under paragraph (2)(B))''
after ``subsection'';
(ii) in subclause (I) of clause (i), by striking ``or the
average per-pupil expenditure of all the States'';
(iii) by amending clause (ii) to read as follows:
``(ii) The Secretary shall next multiply the amount
determined under clause (i) by the total number of students
in average daily attendance at the schools of the local
educational agency.''; and
(iv) by amending clause (iii) to read as follows:
``(iii) The Secretary shall next subtract from the amount
determined under clause (ii) all funds available to the local
educational agency for current expenditures, but shall not so
subtract funds provided--

``(I) under this Act; or
``(II) by any department or agency of the Federal
Government (other than the Department) that are used for
capital expenses.''; and

(B) by amending subparagraph (B) to read as follows:
``(B) Special rule.--With respect to payments under this
subsection for a fiscal year for a local educational agency
described in clause (ii) or (iii) of paragraph (2)(A), the
maximum amount of payments under this subsection shall be
equal to--
``(i) the product of--

``(I) the average per-pupil expenditure in all States
multiplied by 0.7, except that such amount may not exceed 125
percent of the average per-pupil expenditure in all local
educational agencies in the State; multiplied by
``(II) the number of students described in subparagraph (A)
or (B) of subsection (a)(1) for such agency; minus

``(ii) the amount of payments such agency receives under
subsections (b) and (d) for such year.''.
(g) Current Year Data.--Paragraph (4) of section 8003(f) of
such Act (20 U.S.C. 7703(f)) is amended to read as follows:
``(4) Current year data.--For purposes of providing
assistance under this subsection the Secretary--
``(A) shall use student and revenue data from the fiscal
year for which the local educational agency is applying for
assistance under this subsection; and
``(B) shall derive the per pupil expenditure amount for
such year for the local educational agency's comparable
school districts by increasing or decreasing the per pupil
expenditure data for the second fiscal year preceding the
fiscal year for which the determination is made by the same
percentage increase or decrease reflected between the per
pupil expenditure data for the fourth fiscal year preceding
the fiscal year for which the determination is made and the
per

[[Page H429]]
pupil expenditure data for such second year.''.
(h) Technical Amendments To Correct References to Repealed
Law.--Section 386 of the National Defense Authorization Act
for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 note)
is amended--
(1) in subsection (e)(2)--
(A) in subparagraph (C), by inserting after ``et seq.),''
the following: ``title VIII of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7701 et seq.),''; and
(B) in subparagraph (D)(iii), by striking out ``under
subsections (a) and (b) of section 3 of such Act (20 U.S.C.
238)''; and
(2) in subsection (h)--
(A) in paragraph (1), by striking out ``section 14101 of
the Elementary and Secondary Education Act of 1965'' and
inserting in lieu thereof ``section 8013(9) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7713(9))'';
and
(B) by striking out paragraph (3) and inserting in lieu
thereof the following new paragraph:
``(3) The term `State' means each of the 50 States and the
District of Columbia.''.

SEC. 1075. SHARING OF PERSONNEL OF DEPARTMENT OF DEFENSE
DOMESTIC DEPENDENT SCHOOLS AND DEFENSE
DEPENDENTS' EDUCATION SYSTEM.

Section 2164(e) of title 10, United States Code, is amended
by adding at the end the following:
``(4)(A) The Secretary may, without regard to the
provisions of any law relating to the number, classification,
or compensation of employees--
``(i) transfer employees from schools established under
this section to schools in the defense dependents' education
system in order to provide the services referred to in
subparagraph (B) to such system; and
``(ii) transfer employees from such system to schools
established under this section in order to provide such
services to those schools.
``(B) The services referred to in subparagraph (A) are the
following:
``(i) Administrative services.
``(ii) Logistical services.
``(iii) Personnel services.
``(iv) Such other services as the Secretary considers
appropriate.
``(C) Transfers under this paragraph shall extend for such
periods as the Secretary considers appropriate. The Secretary
shall provide appropriate compensation for employees so
transferred.
``(D) The Secretary may provide that the transfer of an
employee under this paragraph occur without reimbursement of
the school or system concerned.
``(E) In this paragraph, the term `defense dependents'
education system' means the program established and operated
under section 1402(a) of the Defense Dependents' Education
Act of 1978 (20 U.S.C. 921(a)).''.

SEC. 1076. INCREASE IN RESERVE COMPONENT MONTGOMERY GI BILL
EDUCATIONAL ASSISTANCE ALLOWANCE WITH RESPECT
TO SKILLS OR SPECIALTIES FOR WHICH THERE IS A
CRITICAL SHORTAGE OF PERSONNEL.

Section 16131 of title 10, United States Code, is amended
by adding at the end the following new subsection:
``(j)(1) In the case of a person who has a skill or
specialty designated by the Secretary concerned as a skill or
specialty in which there is a critical shortage of personnel
or for which it is difficult to recruit or, in the case of
critical units, retain personnel, the Secretary concerned may
increase the rate of the educational assistance allowance
applicable to that person to such rate in excess of the rate
prescribed under subparagraphs (A) through (D) of subsection
(b)(1) as the Secretary of Defense considers appropriate, but
the amount of any such increase may not exceed $350 per
month.
``(2) In the case of a person who has a skill or specialty
designated by the Secretary concerned as a skill or specialty
in which there is a critical shortage of personnel or for
which it is difficult to recruit or, in the case of critical
units, retain personnel, who is eligible for educational
benefits under chapter 30 (other than section 3012) of title
38 and who meets the eligibility criteria specified in
subparagraphs (A) and (B) of section 16132(a)(1) of this
title, the Secretary concerned may increase the rate of the
educational assistance allowance applicable to that person to
such rate in excess of the rate prescribed under section 3015
of title 38 as the Secretary of Defense considers
appropriate, but the amount of any such increase may not
exceed $350 per month.
``(3) The authority provided by paragraphs (1) and (2)
shall be exercised by the Secretaries concerned under
regulations prescribed by the Secretary of Defense.''.

SEC. 1077. DATE FOR ANNUAL REPORT ON RESERVE COMPONENT
MONTGOMERY GI BILL EDUCATIONAL ASSISTANCE
PROGRAM.

Section 16137 of title 10, United States Code, is amended
by striking out ``December 15 of each year'' and inserting in
lieu thereof ``March 1 of each year''.

SEC. 1078. SCOPE OF EDUCATION PROGRAMS OF COMMUNITY COLLEGE
OF THE AIR FORCE.

(a) Limitation to Members of the Air Force.--Section
9315(a)(1) of title 10, United States Code, is amended by
striking out ``for enlisted members of the armed forces'' and
inserting in lieu thereof ``for enlisted members of the Air
Force''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to enrollments in the Community
College of the Air Force after March 31, 1996.

SEC. 1079. AMENDMENTS TO EDUCATION LOAN REPAYMENT PROGRAMS.

(a) General Education Loan Repayment Program.--Section
2171(a)(1) of title 10, United States Code, is amended--
(1) by striking out ``or'' at the end of subparagraph (A);
(2) by redesignating subparagraph (B) as subparagraph (C);
and
(3) by inserting after subparagraph (A) the following new
subparagraph (B):
``(B) any loan made under part D of such title (the William
D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et
seq.); or''.
(b) Education Loan Repayment Program for Enlisted Members
of Selected Reserve With Critical Specialties.--Section
16301(a)(1) of such title is amended--
(1) by striking out ``or'' at the end of subparagraph (A);
(2) by redesignating subparagraph (B) as subparagraph (C);
and
(3) by inserting after subparagraph (A) the following new
subparagraph (B):
``(B) any loan made under part D of such title (the William
D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et
seq.); or''.
(c) Education Loan Repayment Program for Health Professions
Officers Serving in Selected Reserve With Wartime Critical
Medical Skill Shortages.--Section 16302(a) of such title is
amended--
(1) by redesignating paragraphs (2) through (4) as
paragraphs (3) through (5) respectively; and
(2) by inserting after paragraph (1) the following new
paragraph (2):
``(2) any loan made under part D of such title (the William
D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et
seq.); or''.
Subtitle H--Other Matters

SEC. 1081. NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,
DEFENSE REINVESTMENT, AND DEFENSE CONVERSION
PROGRAMS.

(a) National Security Objectives for National Technology
and Industrial Base.--(1) Section 2501 of title 10, United
States Code, is amended--
(A) in subsection (a)--
(i) by striking out ``Defense Policy'' in the subsection
heading and inserting in lieu thereof ``National Security'';
and
(ii) by striking out paragraph (5);
(B) by striking out subsection (b); and
(C) by redesignating subsection (c) as subsection (b).
(2) The heading of such section is amended to read as
follows:

``Sec. 2501. National security objectives concerning national
technology and industrial base''.

(b) National Defense Technology and Industrial Base
Council.--Section 2502(c) of such title is amended--
(1) in paragraph (1), by striking out subparagraph (B) and
inserting in lieu thereof the following new subparagraph:
``(B) programs for achieving such national security
objectives; and'';
(2) by striking out paragraph (2); and
(3) by redesignating paragraph (3) as paragraph (2).
(c) Modification of Defense Dual-Use Critical Technology
Partnerships Program.--Section 2511 of such title is amended
to read as follows:

``Sec. 2511. Defense dual-use critical technology program

``(a) Establishment of Program.--The Secretary of Defense
shall conduct a program to further the national security
objectives set forth in section 2501(a) of this title by
encouraging and providing for research, development, and
application of dual-use critical technologies. The Secretary
may make grants, enter into contracts, or enter into
cooperative agreements and other transactions pursuant to
section 2371 of this title in furtherance of the program. The
Secretary shall identify projects to be conducted as part of
the program.
``(b) Assistance Authorized.--The Secretary of Defense may
provide technical and other assistance to facilitate the
achievement of the purposes of projects conducted under the
program. In providing such assistance, the Secretary shall
make available, as appropriate for the work to be performed,
equipment and facilities of Department of Defense
laboratories (including the scientists and engineers at those
laboratories) for purposes of projects selected by the
Secretary.
``(c) Financial Commitment of Non-Federal Government
Participants.--(1) The total amount of funds provided by the
Federal Government for a project conducted under the program
may not exceed 50 percent of the total cost of the project.
However, the Secretary of Defense may agree to a project in
which the total amount of funds provided by the Federal
Government exceeds 50 percent if the Secretary determines the
project is particularly meritorious, but the project would
not otherwise have sufficient non-Federal funding or in-kind
contributions.
``(2) The Secretary may prescribe regulations to provide
for consideration of in-kind contributions by non-Federal
Government participants in a project conducted under the
program for the purpose of calculating the share of the
project costs that has been or is being undertaken by such
participants. In such regulations, the Secretary may
authorize a participant that is a small business

[[Page H430]]
concern to use funds received under the Small Business Innovation
Research Program or the Small Business Technology Transfer
Program to help pay the costs of project activities. Any such
funds so used may be considered in calculating the amount of
the financial commitment undertaken by the non-Federal
Government participants unless the Secretary determines that
the small business concern has not made a significant equity
percentage contribution in the project from non-Federal
sources.
``(3) The Secretary shall consider a project proposal
submitted by a small business concern without regard to the
ability of the small business concern to immediately meet its
share of the anticipated project costs. Upon the selection of
a project proposal submitted by a small business concern, the
small business concern shall have a period of not less than
120 days in which to arrange to meet its financial commitment
requirements under the project from sources other than a
person of a foreign country. If the Secretary determines upon
the expiration of that period that the small business concern
will be unable to meet its share of the anticipated project
costs, the Secretary shall revoke the selection of the
project proposal submitted by the small business concern.
``(d) Selection Process.--Competitive procedures shall be
used in the conduct of the program.
``(e) Selection Criteria.--The criteria for the selection
of projects under the program shall include the following:
``(1) The extent to which the proposed project advances and
enhances the national security objectives set forth in
section 2501(a) of this title.
``(2) The technical excellence of the proposed project.
``(3) The qualifications of the personnel proposed to
participate in the research activities of the proposed
project.
``(4) An assessment of timely private sector investment in
activities to achieve the goals and objectives of the
proposed project other than through the project.
``(5) The potential effectiveness of the project in the
further development and application of each technology
proposed to be developed by the project for the national
technology and industrial base.
``(6) The extent of the financial commitment of eligible
firms to the proposed project.
``(7) The extent to which the project does not
unnecessarily duplicate projects undertaken by other
agencies.
``(f) Regulations.--The Secretary of Defense shall
prescribe regulations for the purposes of this section.''.
(d) Federal Defense Laboratory Diversification Program.--
Section 2519 of such title is amended--
(1) in subsection (b), by striking out ``referred to in
section 2511(b) of this title''; and
(2) in subsection (f), by striking out ``section 2511(f)''
and inserting in lieu thereof ``section 2511(e)''.
(e) Manufacturing Science and Technology Program.--
Subsection (b) of section 2525 of such title is amended to
read as follows:
``(b) Purpose of Program.--The Secretary of Defense shall
use the program--
``(1) to provide centralized guidance and direction
(including goals, milestones, and priorities) to the military
departments and the Defense Agencies on all matters relating
to manufacturing technology;
``(2) to direct the development and implementation of
Department of Defense plans, programs, projects, activities,
and policies that promote the development and application of
advanced technologies to manufacturing processes, tools, and
equipment;
``(3) to improve the manufacturing quality, productivity,
technology, and practices of businesses and workers providing
goods and services to the Department of Defense;
``(4) to promote dual-use manufacturing processes;
``(5) to disseminate information concerning improved
manufacturing improvement concepts, including information on
such matters as best manufacturing practices, product data
exchange specifications, computer-aided acquisition and
logistics support, and rapid acquisition of manufactured
parts;
``(6) to sustain and enhance the skills and capabilities of
the manufacturing work force;
``(7) to promote high-performance work systems (with
development and dissemination of production technologies that
build upon the skills and capabilities of the work force),
high levels of worker education and training; and
``(8) to ensure appropriate coordination between the
manufacturing technology programs and industrial preparedness
programs of the Department of Defense and similar programs
undertaken by other departments and agencies of the Federal
Government or by the private sector.''.
(f) Repeal of Various Assistance Programs.--Sections 2512,
2513, 2520, 2521, 2522, 2523, and 2524 of such title are
repealed.
(g) Repeal of Military-Civilian Integration and Technology
Transfer Advisory Board.--Section 2516 of such title is
repealed.
(h) Repeal of Obsolete Definitions.--Section 2491 of such
title is amended--
(1) by striking out paragraphs (11) and (12); and
(2) by redesignating paragraphs (13), (14), (15), and (16)
as paragraphs (11) (12), (13), and (14), respectively.
(i) Clerical Amendments.--(1) The table of sections at the
beginning of subchapter II of chapter 148 of such title is
amended by striking out the item relating to section 2501 and
inserting in lieu thereof the following new item:

``2501. National security objectives concerning national technology and
industrial base.''.

(2) The table of sections at the beginning of subchapter
III of such chapter is amended--
(A) by striking out the item relating to section 2511 and
inserting in lieu thereof the following new item:

``2511. Defense dual-use critical technology program.''; and

(B) by striking out the items relating to sections 2512,
2513, 2516, and 2520.
(3) The table of sections at the beginning of subchapter IV
of such chapter is amended by striking out the items relating
to sections 2521, 2522, 2523, and 2524.

SEC. 1082. AMMUNITION INDUSTRIAL BASE.

(a) Review of Ammunition Procurement Programs.--The
Secretary of Defense shall carry out a review of the programs
of the Department of Defense for the procurement of
ammunition. The review shall include the Department of
Defense management of ammunition procurement programs,
including the procedures of the Department for the planning
for, budgeting for, administration, and carrying out of such
programs. The Secretary shall begin the review not later than
30 days after the date of the enactment of this Act.
(b) Matters To Be Reviewed.--The review under subsection
(a) shall include an assessment of the following:
(1) The practicability and desirability of (A) continuing
to use centralized procurement practices (through a single
executive agent) for the procurement of ammunition required
by the Armed Forces, and (B) using such centralized
procurement practices for the procurement of all such
ammunition.
(2) The capability of the ammunition production facilities
of the Government to meet the requirements of the Armed
Forces for procurement of ammunition.
(3) The practicability and desirability of converting those
ammunition production facilities to ownership or operation by
private sector entities.
(4) The practicability and desirability of integrating the
budget planning for the procurement of ammunition among the
Armed Forces.
(5) The practicability and desirability of establishing an
advocate within the Department of Defense for matters
relating to the ammunition industrial base, with such an
advocate to be responsible for--
(A) establishing the quantity and price of ammunition
procured by the Armed Forces; and
(B) establishing and implementing policy to ensure the
continuing capability of the ammunition industrial base in
the United States to meet the requirements of the Armed
Forces.
(6) The practicability and desirability of providing
information on the ammunition procurement practices of the
Armed Forces to Congress through a single source.
(c) Report.--Not later than April 1, 1996, the Secretary
shall submit to the congressional defense committees a report
on the review carried out under subsection (a). The report
shall include the following:
(1) The results of the review.
(2) A discussion of the methodologies used in carrying out
the review.
(3) An assessment of various methods of ensuring the
continuing capability of the ammunition industrial base of
the United States to meet the requirements of the Armed
Forces.
(4) Recommendations of means (including legislation) of
implementing those methods in order to ensure such continuing
capability.

SEC. 1083. POLICY CONCERNING EXCESS DEFENSE INDUSTRIAL
CAPACITY.

No funds appropriated pursuant to an authorization of
appropriations in this Act may be used for capital investment
in, or the development and construction of, a Government-
owned, Government-operated defense industrial facility unless
the Secretary of Defense certifies to the Congress that no
similar capability or minimally used capacity exists in any
other Government-owned, Government-operated defense
industrial facility.

SEC. 1084. SENSE OF CONGRESS CONCERNING ACCESS TO SECONDARY
SCHOOL STUDENT INFORMATION FOR RECRUITING
PURPOSES.

(a) Sense of Congress.--It is the sense of Congress that--
(1) the States (with respect to public schools) and
entities operating private secondary schools should not have
a policy of denying, or otherwise effectively preventing, the
Secretary of Defense from obtaining for military recruiting
purposes--
(A) entry to any secondary school or access to students at
any secondary school equal to that of other employers; or
(B) access to directory information pertaining to students
at secondary schools equal to that of other employers (other
than in a case in which an objection has been raised as
described in paragraph (2)); and
(2) any State, and any entity operating a private secondary
school, that releases directory information secondary school
students should--
(A) give public notice of the categories of such
information to be released; and

[[Page H431]]

(B) allow a reasonable period after such notice has been
given for a student or (in the case of an individual younger
than 18 years of age) a parent to inform the school that any
or all of such information should not be released without
obtaining prior consent from the student or the parent, as
the case may be.
(b) Report on DOD Procedures.--Not later than March 1,
1996, the Secretary of Defense shall submit to Congress a
report on Department of Defense procedures for determining if
and when a State or an entity operating a private secondary
school has denied or prevented access to students or
information as described in subsection (a)(1).
(c) Definitions.--For purposes of this section:
(1) The term ``directory information'' means, with respect
to a student, the student's name, address, telephone listing,
date and place of birth, level of education, degrees
received, and (if available) the most recent previous
educational program enrolled in by the student.
(2) The term ``student'' means an individual enrolled in
any program of education who is 17 years of age or older.

SEC. 1085. DISCLOSURE OF INFORMATION CONCERNING UNACCOUNTED
FOR UNITED STATES PERSONNEL FROM THE KOREAN
CONFLICT, THE VIETNAM ERA, AND THE COLD WAR.

Section 1082 of the National Defense Authorization Act for
Fiscal Years 1992 and 1993 (Public Law 102-190; 50 U.S.C. 401
note) is amended--
(1) in subsection (b)(3)(A), by striking out ``cannot be
located after a reasonable effort.'' and inserting in lieu
thereof ``cannot be located by the Secretary of Defense--
``(i) in the case of a person missing from the Vietnam era,
after a reasonable effort; and
``(ii) in the case of a person missing from the Korean
Conflict or Cold War, after a period of 90 days from the date
on which any record or other information referred to in
paragraph (2) is received by the Department of Defense for
disclosure review from the Archivist of the United States,
the Library of Congress, or the Joint United States-Russian
Commission on POW/MIAs.''; and
(2) in subsection (c)(1), by striking out ``not later than
September 30, 1995'' and inserting in lieu thereof ``not
later than January 2, 1996''.

SEC. 1086. OPERATIONAL SUPPORT AIRLIFT AIRCRAFT FLEET.

(a) Submittal of JCS Report on Aircraft.--Not later than
February 1, 1996, the Secretary of Defense shall submit to
Congress the report that, as of the date of the enactment of
this Act, is in preparation by the Chairman of the Joint
Chiefs of Staff on operational support airlift aircraft.
(b) Content of Report.--(1) The report referred to in
subsection (a) shall contain findings and recommendations on
the following:
(A) Requirements for the modernization and safety of the
operational support airlift aircraft fleet.
(B) The disposition of aircraft that would be excess to
that fleet upon fulfillment of the requirements referred to
in subparagraph (A).
(C) Plans and requirements for the standardization of the
fleet, including plans and requirements for the provision of
a single manager for all logistical support and operational
requirements.
(D) Central scheduling of all operational support airlift
aircraft.
(E) Needs of the Department for helicopter support in the
National Capital Region, including the acceptable uses of
that support.
(2) In preparing the report, the Chairman of the Joint
Chiefs of Staff shall take into account the recommendation of
the Commission on Roles and Missions of the Armed Forces to
reduce the size of the operational support airlift aircraft
fleet.
(c) Regulations.--(1) Upon completion of the report
referred to in subsection (a), the Secretary shall prescribe
regulations, consistent with the findings and recommendations
set forth in the report, for the operation, maintenance,
disposition, and use of operational support airlift aircraft.
(2) The regulations shall, to the maximum extent
practicable, provide for, and encourage the use of,
commercial airlines in lieu of the use of such aircraft.
(3) The regulations shall apply uniformly throughout the
Department.
(4) The regulations shall not require exclusive use of such
aircraft for any particular class of government personnel.
(d) Reductions in Flying Hours.--(1) The Secretary shall
ensure that the number of hours flown during fiscal year 1996
by operational support airlift aircraft does not exceed the
number equal to 85 percent of the number of hours flown
during fiscal year 1995 by operational support airlift
aircraft.
(2) The Secretary should ensure that the number of hours
flown in the National Capital Region during fiscal year 1996
by helicopters of the operational support airlift aircraft
fleet does not exceed the number equal to 85 percent of the
number of hours flown in the National Capital Region during
fiscal year 1995 by helicopters of the operational support
airlift aircraft fleet.
(e) Restriction on Availability of Funds.--Of the funds
appropriated pursuant to section 301 for the operation and
use of operational support airlift aircraft, not more than 50
percent is available for obligation until the Secretary
submits to Congress the report referred to in subsection (a).
(f) Definitions.--In this section:
(1) The term ``operational support airlift aircraft'' means
aircraft of the Department of Defense designated within the
Department as operational support airlift aircraft.
(2) The term ``National Capital Region'' has the meaning
given such term in section 2674(f)(2) of title 10, United
States Code.

SEC. 1087. CIVIL RESERVE AIR FLEET.

Section 9512 of title 10, United States Code, is amended by
striking out ``full Civil Reserve Air Fleet'' in subsections
(b)(2) and (e) and inserting in lieu thereof ``Civil Reserve
Air Fleet''.

SEC. 1088. DAMAGE OR LOSS TO PERSONAL PROPERTY DUE TO
EMERGENCY EVACUATION OR EXTRAORDINARY
CIRCUMSTANCES.

(a) Settlement of Claims of Personnel.--Section 3721(b)(1)
of title 31, United States Code, is amended by inserting
after the first sentence the following: ``If, however, the
claim arose from an emergency evacuation or from
extraordinary circumstances, the amount settled and paid
under the authority of the preceding sentence may exceed
$40,000, but may not exceed $100,000.''.
(b) Applicability.--The amendment made by subsection (a)
shall apply to claims arising before, on, or after the date
of the enactment of this Act.
(c) Representments of Previously Presented Claims.--(1) A
claim under subsection (b) of section 3721 of title 31,
United States Code, that was settled under such section
before the date of the enactment of this Act may be
represented under such section, as amended by subsection (a),
to the head of the agency concerned to recover the amount
equal to the difference between the actual amount of the
damage or loss and the amount settled and paid under the
authority of such section before the date of the enactment of
this Act, except that--
(A) the claim shall be represented in writing within two
years after the date of the enactment of this Act;
(B) a determination of the actual amount of the damage or
loss shall have been made by the head of the agency concerned
pursuant to settlement of the claim under the authority of
such section before the date of the enactment of this Act;
(C) the claimant shall have proof of the determination
referred to in subparagraph (B); and
(D) the total of all amounts paid in settlement of the
claim under the authority of such section may not exceed
$100,000.
(2) Subsection (k) of such section shall not apply to bar
representment of a claim described in paragraph (1), but
shall apply to such a claim that is represented and settled
under that section after the date of the enactment of this
Act.

SEC. 1089. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION
ACTIONS AGAINST DECEASED MEMBERS.

Section 3711 of title 31, United States Code, is amended by
adding at the end the following:
``(g)(1) The Secretary of Defense may suspend or terminate
an action by the Secretary or by the Secretary of a military
department 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 Army, Navy, Air Force, or Marine Corps if
the Secretary determines that, under the circumstances
applicable with respect to the deceased person, it is
appropriate to do so.
``(2) In this subsection, the term `active duty' has the
meaning given that term in section 101 of title 10.''.

SEC. 1090. CHECK CASHING AND EXCHANGE TRANSACTIONS FOR
DEPENDENTS OF UNITED STATES GOVERNMENT
PERSONNEL.

(a) Authority To Carry Out Transactions.--Subsection (b) of
section 3342 of title 31, United States Code, is amended--
(1) by redesignating paragraphs (3), (4), and (5) as
paragraphs (4), (5), and (6), respectively; and
(2) by inserting after paragraph (2) the following new
paragraph:
``(3) a dependent of personnel of the Government, but
only--
``(A) at a United States installation at which adequate
banking facilities are not available; and
``(B) in the case of negotiation of negotiable instruments,
if the dependent's sponsor authorizes, in writing, the
presentation of negotiable instruments to the disbursing
official for negotiation.''.
(b) Pay Offset.--Subsection (c) of such section is
amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following new
paragraph (3):
``(3) The amount of any deficiency resulting from cashing a
check for a dependent under subsection (b)(3), including any
charges assessed against the disbursing official by a
financial institution for insufficient funds to pay the
check, may be offset from the pay of the dependent's
sponsor.''.
(c) Definitions.--Such section is further amended by adding
at the end the following:
``(e) Regulations prescribed under subsection (d) shall
include regulations that define the terms `dependent' and
`sponsor' for the purposes of this section. In the
regulations, the term `dependent', with respect to a member
of a uniformed service, shall have the meaning given that
term in section 401 of title 37.''.

[[Page H432]]

SEC. 1091. DESIGNATION OF NATIONAL MARITIME CENTER.

(a) Designation of National Maritime Center.--The NAUTICUS
building, located at one Waterside Drive, Norfolk, Virginia,
shall be known and designated as the ``National Maritime
Center''.
(b) Reference to National Maritime Center.--Any reference
in a law, map, regulation, document, paper, or other record
of the United States to the building referred to in
subsection (a) shall be deemed to be a reference to the
``National Maritime Center''.

SEC. 1092. SENSE OF CONGRESS REGARDING HISTORIC PRESERVATION
OF MIDWAY ISLANDS.

(a) Findings.--Congress makes the following findings:
(1) September 2, 1995, marks the 50th anniversary of the
United States victory over Japan in World War II.
(2) The Battle of Midway proved to be the turning point in
the war in the Pacific, as United States Navy forces
inflicted such severe losses on the Imperial Japanese Navy
during the battle that the Imperial Japanese Navy never again
took the offensive against United States or allied forces.
(3) During the Battle of Midway, an outnumbered force of
the United States Navy, consisting of 29 ships and other
units of the Armed Forces under the command of Admiral Nimitz
and Admiral Spruance, out-maneuvered and out-fought 350 ships
of the Imperial Japanese Navy.
(4) It is in the public interest to erect a memorial to the
Battle of Midway that is suitable to express the enduring
gratitude of the American people for victory in the battle
and to inspire future generations of Americans with the
heroism and sacrifice of the members of the Armed Forces who
achieved that victory.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the Midway Islands and the surrounding seas deserve to
be memorialized;
(2) the historic structures related to the Battle of Midway
should be maintained, in accordance with the National
Historic Preservation Act (16 U.S.C. 470-470t), and subject
to the availability of appropriations for that purpose.
(3) appropriate access to the Midway Islands by survivors
of the Battle of Midway, their families, and other visitors
should be provided in a manner that ensures the public health
and safety on the Midway Islands and the conservation of the
natural resources of those islands in accordance with
existing Federal law.

SEC. 1093. SENSE OF SENATE REGARDING FEDERAL SPENDING.

It is the sense of the Senate that in pursuit of a balanced
Federal budget, Congress should exercise fiscal restraint,
particularly in authorizing spending not requested by the
executive branch and in proposing new programs.

SEC. 1094. EXTENSION OF AUTHORITY FOR VESSEL WAR RISK
INSURANCE.

Section 1214 of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1294), is amended by striking ``June 30, 1995'' and
inserting in lieu thereof ``June 30, 2000''.
TITLE XI--UNIFORM CODE OF MILITARY JUSTICE

SEC. 1101. SHORT TITLE.

This title may be cited as the ``Military Justice
Amendments of 1995''.

SEC. 1102. REFERENCES TO UNIFORM CODE OF MILITARY JUSTICE.

Except as otherwise expressly provided, whenever in this
title an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or
other provision of chapter 47 of title 10, United States Code
(the Uniform Code of Military Justice).
Subtitle A--Offenses

SEC. 1111. REFUSAL TO TESTIFY BEFORE COURT-MARTIAL.

Section 847(b) (article 47(b)) is amended--
(1) in the first sentence, by inserting ``indictment or''
after ``shall be tried on''; and
(2) in the second sentence, by striking out ``shall be''
and all that follows and inserting in lieu thereof ``shall be
fined or imprisoned, or both, at the court's discretion.''.

SEC. 1112. FLIGHT FROM APPREHENSION.

(a) In General.--Section 895 (article 95) is amended to
read as follows:

``Sec. 895. Art. 95. Resistance, flight, breach of arrest,
and escape

``Any person subject to this chapter who--
``(1) resists apprehension;
``(2) flees from apprehension;
``(3) breaks arrest; or
``(4) escapes from custody or confinement;
shall be punished as a court-martial may direct.''.
(b) Clerical Amendment.--The item relating to section 895
(article 95) in the table of sections at the beginning of
subchapter X is amended to read as follows:

``895. Art. 95. Resistance, flight, breach of arrest, and escape.''.

SEC. 1113. CARNAL KNOWLEDGE.

(a) Gender Neutrality.--Subsection (b) of section 920
(article 120) is amended to read as follows:
``(b) Any person subject to this chapter who, under
circumstances not amounting to rape, commits an act of sexual
intercourse with a person--
``(1) who is not that person's spouse; and
``(2) who has not attained the age of sixteen years;
is guilty of carnal knowledge and shall be punished as a
court-martial may direct.''.
(b) Mistake of Fact.--Such section (article) is further
amended by adding at the end the following new subsection:
``(d)(1) In a prosecution under subsection (b), it is an
affirmative defense that--
``(A) the person with whom the accused committed the act of
sexual intercourse had at the time of the alleged offense
attained the age of twelve years; and
``(B) the accused reasonably believed that that person had
at the time of the alleged offense attained the age of
sixteen years.
``(2) The accused has the burden of proving a defense under
paragraph (1) by a preponderance of the evidence.''.
Subtitle B--Sentences

SEC. 1121. EFFECTIVE DATE FOR FORFEITURES OF PAY AND
ALLOWANCES AND REDUCTIONS IN GRADE BY SENTENCE
OF COURT-MARTIAL.

(a) Effective Date of Specified Punishments.--Subsection
(a) of section 857 (article 57) is amended to read as
follows:
``(a)(1) Any forfeiture of pay or allowances or reduction
in grade that is included in a sentence of a court-martial
takes effect on the earlier of--
``(A) the date that is 14 days after the date on which the
sentence is adjudged; or
``(B) the date on which the sentence is approved by the
convening authority.
``(2) On application by an accused, the convening authority
may defer a forfeiture of pay or allowances or reduction in
grade that would otherwise become effective under paragraph
(1)(A) until the date on which the sentence is approved by
the convening authority. Such a deferment may be rescinded at
any time by the convening authority.
``(3) A forfeiture of pay or allowances shall be applicable
to pay and allowances accruing on and after the date on which
the sentence takes effect.
``(4) In this subsection, the term `convening authority',
with respect to a sentence of a court-martial, means any
person authorized to act on the sentence under section 860 of
this title (article 60).''.
(b) Applicability.--The amendment made by subsection (a)
shall apply to a case in which a sentence is adjudged by a
court-martial on or after the first day of the first month
that begins at least 30 days after the date of the enactment
of this Act.

SEC. 1122. REQUIRED FORFEITURE OF PAY AND ALLOWANCES DURING
CONFINEMENT.

(a) Effect of Punitive Separation or Confinement for More
Than Six Months.--(1) Subchapter VIII is amended by inserting
after section 858a (article 58a) the following:

``Sec. 858b. Art. 58b. Sentences: forfeiture of pay and
allowances during confinement

``(a)(1) A court-martial sentence described in paragraph
(2) shall result in the forfeiture of pay and allowances due
that member during any period of confinement or parole. The
forfeiture pursuant to this section shall take effect on the
date determined under section 857(a) of this title (article
57(a)) and may be deferred as provided in that section. The
pay and allowances forfeited, in the case of a general court-
martial, shall be all pay and allowances due that member
during such period and, in the case of a special court-
martial, shall be two-thirds of all pay and allowances due
that member during such period.
``(2) A sentence covered by this section is any sentence
that includes--
``(A) confinement for more than six months or death; or
``(B) confinement for six months or less and a dishonorable
or bad-conduct discharge or dismissal.
``(b) In a case involving an accused who has dependents,
the convening authority or other person acting under section
860 of this title (article 60) may waive any or all of the
forfeitures of pay and allowances required by subsection (a)
for a period not to exceed six months. Any amount of pay or
allowances that, except for a waiver under this subsection,
would be forfeited shall be paid, as the convening authority
or other person taking action directs, to the dependents of
the accused.
``(c) If the sentence of a member who forfeits pay and
allowances under subsection (a) is set aside or disapproved
or, as finally approved, does not provide for a punishment
referred to in subsection (a)(2), the member shall be paid
the pay and allowances which the member would have been paid,
except for the forfeiture, for the period during which the
forfeiture was in effect.''.
(2) The table of sections at the beginning of subchapter
VIII is amended by adding at the end the following new item:

``858b. 58b. Sentences: forfeiture of pay and allowances during
confinement.''.

(b) Applicability.--The section (article) added by the
amendment made by subsection (a)(1) shall apply to a case in
which a sentence is adjudged by a court-martial on or after
the first day of the first month that begins at least 30 days
after the date of the enactment of this Act.
(c) Conforming Amendment.--(1) Section 804 of title 37,
United States Code, is repealed.
(2) The table of sections at the beginning of chapter 15 of
such title is amended by striking out the item relating to
section 804.

SEC. 1123. DEFERMENT OF CONFINEMENT.

(a) Deferment.--Subchapter VIII is amended--

[[Page H433]]

(1) by inserting after subsection (c) of section 857
(article 57) the following:

``Sec. 857a. Art. 57a. Deferment of sentences'';

(2) by redesignating the succeeding two subsections as
subsection (a) and (b);
(3) in subsection (b), as redesignated by paragraph (2), by
striking out ``postpone'' and inserting in lieu thereof
``defer''; and
(4) by inserting after subsection (b), as redesignated by
paragraph (2), the following:
``(c) In any case in which a court-martial sentences a
person to confinement and the sentence to confinement has
been ordered executed, but in which review of the case under
section 867(a)(2) of this title (article 67(a)(2)) is
pending, the Secretary concerned may defer further service of
the sentence to confinement while that review is pending.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such subchapter is amended by inserting after
the item relating to section 857 (article 57) the following
new item:

``857a. 57a. Deferment of sentences.''.
Subtitle C--Pretrial and Post-Trial Actions

SEC. 1131. ARTICLE 32 INVESTIGATIONS.

Section 832 (article 32) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following new
subsection (d):
``(d) If evidence adduced in an investigation under this
article indicates that the accused committed an uncharged
offense, the investigating officer may investigate the
subject matter of that offense without the accused having
first been charged with the offense if the accused--
``(1) is present at the investigation;
``(2) is informed of the nature of each uncharged offense
investigated; and
``(3) is afforded the opportunities for representation,
cross-examination, and presentation prescribed in subsection
(b).''.

SEC. 1132. SUBMISSION OF MATTERS TO THE CONVENING AUTHORITY
FOR CONSIDERATION.

Section 860(b)(1) (article 60(b)(1)) is amended by
inserting after the first sentence the following: ``Any such
submission shall be in writing.''.

SEC. 1133. COMMITMENT OF ACCUSED TO TREATMENT FACILITY BY
REASON OF LACK OF MENTAL CAPACITY OR MENTAL
RESPONSIBILITY.

(a) Applicable Procedures.--(1) Subchapter IX is amended by
inserting after section 876a (article 76a) the following:

``Sec. 876b. Art. 76b. Lack of mental capacity or mental
responsibility: commitment of accused for examination and
treatment

``(a) Persons Incompetent To Stand Trial.--(1) In the case
of a person determined under this chapter to be presently
suffering from a mental disease or defect rendering the
person mentally incompetent to the extent that the person is
unable to understand the nature of the proceedings against
that person or to conduct or cooperate intelligently in the
defense of the case, the general court-martial convening
authority for that person shall commit the person to the
custody of the Attorney General.
``(2) The Attorney General shall take action in accordance
with section 4241(d) of title 18.
``(3) If at the end of the period for hospitalization
provided for in section 4241(d) of title 18, it is determined
that the committed person's mental condition has not so
improved as to permit the trial to proceed, action shall be
taken in accordance with section 4246 of such title.
``(4)(A) When the director of a facility in which a person
is hospitalized pursuant to paragraph (2) determines that the
person has recovered to such an extent that the person is
able to understand the nature of the proceedings against the
person and to conduct or cooperate intelligently in the
defense of the case, the director shall promptly transmit a
notification of that determination to the Attorney General
and to the general court-martial convening authority for the
person. The director shall send a copy of the notification to
the person's counsel.
``(B) Upon receipt of a notification, the general court-
martial convening authority shall promptly take custody of
the person unless the person covered by the notification is
no longer subject to this chapter. If the person is no longer
subject to this chapter, the Attorney General shall take any
action within the authority of the Attorney General that the
Attorney General considers appropriate regarding the person.
``(C) The director of the facility may retain custody of
the person for not more than 30 days after transmitting the
notifications required by subparagraph (A).
``(5) In the application of section 4246 of title 18 to a
case under this subsection, references to the court that
ordered the commitment of a person, and to the clerk of such
court, shall be deemed to refer to the general court-martial
convening authority for that person. However, if the person
is no longer subject to this chapter at a time relevant to
the application of such section to the person, the United
States district court for the district where the person is
hospitalized or otherwise may be found shall be considered as
the court that ordered the commitment of the person.
``(b) Persons Found Not Guilty by Reason of Lack of Mental
Responsibility.--(1) If a person is found by a court-martial
not guilty only by reason of lack of mental responsibility,
the person shall be committed to a suitable facility until
the person is eligible for release in accordance with this
section.
``(2) The court-martial shall conduct a hearing on the
mental condition in accordance with subsection (c) of section
4243 of title 18. Subsections (b) and (d) of that section
shall apply with respect to the hearing.
``(3) A report of the results of the hearing shall be made
to the general court-martial convening authority for the
person.
``(4) If the court-martial fails to find by the standard
specified in subsection (d) of section 4243 of title 18 that
the person's release would not create a substantial risk of
bodily injury to another person or serious damage of property
of another due to a present mental disease or defect--
``(A) the general court-martial convening authority may
commit the person to the custody of the Attorney General; and
``(B) the Attorney General shall take action in accordance
with subsection (e) of section 4243 of title 18.
``(5) Subsections (f), (g), and (h) of section 4243 of
title 18 shall apply in the case of a person hospitalized
pursuant to paragraph (4)(B), except that the United States
district court for the district where the person is
hospitalized shall be considered as the court that ordered
the person's commitment.
``(c) General Provisions.--(1) Except as otherwise provided
in this subsection and subsection (d)(1), the provisions of
section 4247 of title 18 apply in the administration of this
section.
``(2) In the application of section 4247(d) of title 18 to
hearings conducted by a court-martial under this section or
by (or by order of) a general court-martial convening
authority under this section, the reference in that section
to section 3006A of such title does not apply.
``(d) Applicability.--(1) The provisions of chapter 313 of
title 18 referred to in this section apply according to the
provisions of this section notwithstanding section 4247(j) of
title 18.
``(2) If the status of a person as described in section 802
of this title (article 2) terminates while the person is,
pursuant to this section, in the custody of the Attorney
General, hospitalized, or on conditional release under a
prescribed regimen of medical, psychiatric, or psychological
care or treatment, the provisions of this section
establishing requirements and procedures regarding a person
no longer subject to this chapter shall continue to apply to
that person notwithstanding the change of status.''.
(2) The table of sections at the beginning of such
subchapter is amended by inserting after the item relating to
section 876a (article 76a) the following:

``876b. 76b. Lack of mental capacity or mental responsibility:
commitment of accused for examination and treatment.''.

(b) Conforming Amendment.--Section 802 (article 2) is
amended by adding at the end the following new subsection:
``(e) The provisions of this section are subject to section
876b(d)(2) of this title (article 76b(d)(2)).''.
(c) Effective Date.--Section 876b of title 10, United
States Code (article 76b of the Uniform Code of Military
Justice), as added by subsection (a), shall take effect at
the end of the six-month period beginning on the date of the
enactment of this Act and shall apply with respect to charges
referred to courts-martial after the end of that period.
Subtitle D--Appellate Matters

SEC. 1141. APPEALS BY THE UNITED STATES.

(a) Appeals Relating to Disclosure of Classified
Information.--Section 862(a)(1) (article 62(a)(1)) is amended
to read as follows:
``(a)(1) In a trial by court-martial in which a military
judge presides and in which a punitive discharge may be
adjudged, the United States may appeal the following (other
than an order or ruling that is, or that amounts to, a
finding of not guilty with respect to the charge or
specification):
``(A) An order or ruling of the military judge which
terminates the proceedings with respect to a charge or
specification.
``(B) An order or ruling which excludes evidence that is
substantial proof of a fact material in the proceeding.
``(C) An order or ruling which directs the disclosure of
classified information.
``(D) An order or ruling which imposes sanctions for
nondisclosure of classified information.
``(E) A refusal of the military judge to issue a protective
order sought by the United States to prevent the disclosure
of classified information.
``(F) A refusal by the military judge to enforce an order
described in subparagraph (E) that has previously been issued
by appropriate authority.''.
(b) Definitions.--Section 801 (article 1) is amended by
inserting after paragraph (14) the following new paragraphs:
``(15) The term `classified information' means (A) any
information or material that has been determined by an
official of the United States pursuant to law, an Executive
order, or regulation to require protection against
unauthorized disclosure for reasons of national security, and
(B) any restricted data, as defined in section 11(y) of the
Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).
``(16) The term `national security' means the national
defense and foreign relations of the United States.''.

[[Page H434]]

SEC. 1142. REPEAL OF TERMINATION OF AUTHORITY FOR CHIEF
JUSTICE OF THE UNITED STATES TO DESIGNATE
ARTICLE III JUDGES FOR TEMPORARY SERVICE ON
COURT OF APPEALS FOR THE ARMED FORCES.

Subsection (i) of section 1301 of the National Defense
Authorization Act for Fiscal Years 1990 and 1991 (Public Law
101-189; 10 U.S.C. 942 note) is repealed.
Subtitle E--Other Matters

SEC. 1151. ADVISORY COMMITTEE ON CRIMINAL LAW JURISDICTION
OVER CIVILIANS ACCOMPANYING THE ARMED FORCES IN
TIME OF ARMED CONFLICT.

(a) Establishment.--Not later than 45 days after the date
of the enactment of this Act, the Secretary of Defense and
the Attorney General shall jointly appoint an advisory
committee to review and make recommendations concerning the
appropriate forum for criminal jurisdiction over civilians
accompanying the Armed Forces in the field outside the United
States in time of armed conflict.
(b) Membership.--The committee shall be composed of at
least five individuals, including experts in military law,
international law, and Federal civilian criminal law. In
making appointments to the committee, the Secretary and the
Attorney General shall ensure that the members of the
committee reflect diverse experiences in the conduct of
prosecution and defense functions.
(c) Duties.--The committee shall do the following:
(1) Review historical experiences and current practices
concerning the use, training, discipline, and functions of
civilians accompanying the Armed Forces in the field.
(2) Based upon such review and other information available
to the committee, develop specific recommendations concerning
the advisability and feasibility of establishing United
States criminal law jurisdiction over persons who as
civilians accompany the Armed Forces in the field outside the
United States during time of armed conflict not involving a
war declared by Congress, including whether such jurisdiction
should be established through any of the following means (or
a combination of such means depending upon the degree of the
armed conflict involved):
(A) Establishing court-martial jurisdiction over such
persons.
(B) Extending the jurisdiction of the Article III courts to
cover such persons.
(C) Establishing an Article I court to exercise criminal
jurisdiction over such persons.
(3) Develop such additional recommendations as the
committee considers appropriate as a result of the review.
(d) Report.--(1) Not later than December 15, 1996, the
advisory committee shall transmit to the Secretary of Defense
and the Attorney General a report setting forth its findings
and recommendations, including the recommendations required
under subsection (c)(2).
(2) Not later than January 15, 1997, the Secretary of
Defense and the Attorney General shall jointly transmit the
report of the advisory committee to Congress. The Secretary
and the Attorney General may include in the transmittal any
joint comments on the report that they consider appropriate,
and either such official may include in the transmittal any
separate comments on the report that such official considers
appropriate.
(e) Definitions.--For purposes of this section:
(1) The term ``Article I court'' means a court established
under Article I of the Constitution.
(2) The term ``Article III court'' means a court
established under Article III of the Constitution.
(f) Termination of Committee.--The advisory committee shall
terminate 30 days after the date on which the report of the
committee is submitted to Congress under subsection (d)(2).

SEC. 1152. TIME AFTER ACCESSION FOR INITIAL INSTRUCTION IN
THE UNIFORM CODE OF MILITARY JUSTICE.

Section 937(a)(1) (article 137(a)(1)) is amended by
striking out ``within six days'' and inserting in lieu
thereof ``within fourteen days''.

SEC. 1153. TECHNICAL AMENDMENT.

Section 866(f) (article 66(f)) is amended by striking out
``Courts of Military Review'' both places it appears and
inserting in lieu thereof ``Courts of Criminal Appeals''.
TITLE XII--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET
UNION

SEC. 1201. SPECIFICATION OF COOPERATIVE THREAT REDUCTION
PROGRAMS.

(a) In General.--For purposes of section 301 and other
provisions of this Act, Cooperative Threat Reduction programs
are the programs specified in subsection (b).
(b) Specified Programs.--The programs referred to in
subsection (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,
weapons components, and weapons-related technology and
expertise.
(4) Programs to expand military-to-military and defense
contacts.

SEC. 1202. FISCAL YEAR 1996 FUNDING ALLOCATIONS.

(a) In General.--Of the amount appropriated pursuant to the
authorization of appropriations in section 301 for
Cooperative Threat Reduction programs, not more than the
following amounts may be obligated for the purposes
specified:
(1) For elimination of strategic offensive weapons in
Russia, Ukraine, Belarus, and Kazakhstan, $90,000,000.
(2) For weapons security in Russia, $42,500,000.
(3) For the Defense Enterprise Fund, $0.
(4) For nuclear infrastructure elimination in Ukraine,
Belarus, and Kazakhstan, $35,000,000.
(5) For planning and design of a storage facility for
Russian fissile material, $29,000,000.
(6) For planning and design of a chemical weapons
destruction facility in Russia, $73,000,000.
(7) For activities designated as Defense and Military
Contacts/General Support/Training in Russia, Ukraine,
Belarus, and Kazakhstan, $10,000,000.
(8) For activities designated as Other Assessments/Support
$20,500,000.
(b) Limited Authority To Vary Individual Amounts.--(1) If
the Secretary of Defense determines that it is necessary to
do so in the national interest, the Secretary may, subject to
paragraph (2), obligate amounts for the purposes stated in
any of the paragraphs of subsection (a) in excess of the
amount specified for those purposes in that paragraph, but
not in excess of 115 percent of that amount. However, the
total amount obligated for the purposes stated in the
paragraphs in subsection (a) may not by reason of the use of
the authority provided in the preceding sentence exceed the
sum of the amounts specified in those paragraphs.
(2) An obligation for the purposes stated in any of the
paragraphs in subsection (a) in excess of the amount
specified in that paragraph may be made using the authority
provided in paragraph (1) only after--
(A) the Secretary submits to Congress a notification of the
intent to do so together with a complete discussion of the
justification for doing so; and
(B) 15 days have elapsed following the date of the
notification.
(c) Reimbursement of Pay Accounts.--Funds appropriated
pursuant to the authorization of appropriations in section
301 for Cooperative Threat Reduction programs may be
transferred to military personnel accounts for reimbursement
of those accounts for the amount of pay and allowances paid
to reserve component personnel for service while engaged in
any activity under a Cooperative Threat Reduction program.

SEC. 1203. PROHIBITION ON USE OF FUNDS FOR PEACEKEEPING
EXERCISES AND RELATED ACTIVITIES WITH RUSSIA.

None of the funds appropriated pursuant to the
authorization in section 301 for Cooperative Threat Reduction
programs may be obligated or expended for the purpose of
conducting with Russia any peacekeeping exercise or other
peacekeeping-related activity.

SEC. 1204. REVISION TO AUTHORITY FOR ASSISTANCE FOR WEAPONS
DESTRUCTION.

Section 211 of Public Law 102-228 (22 U.S.C. 2551 note) is
amended by adding at the end the following new subsection:
``(c) As part of a transmission to Congress under
subsection (b) of a certification that a proposed recipient
of United States assistance under this title is committed to
carrying out the matters specified in each of paragraphs (1)
through (6) of that subsection, the President shall include a
statement setting forth, in unclassified form (together with
a classified annex if necessary), the determination of the
President, with respect to each such paragraph, as to whether
that proposed recipient is at that time in fact carrying out
the matter specified in that paragraph.''.

SEC. 1205. PRIOR NOTICE TO CONGRESS OF OBLIGATION OF FUNDS.

(a) Annual Requirement.--(1) Not less than 15 days before
any obligation of any funds appropriated for any fiscal year
for a program specified under section 1201 as a Cooperative
Threat Reduction program, the Secretary of Defense shall
submit to the congressional committees specified in paragraph
(2) a report on that proposed obligation for that program for
that fiscal year.
(2) The congressional committees referred to in paragraph
(1) are the following:
(A) The Committee on Armed Services, the Committee on
Foreign Relations, and the Committee on Appropriations of the
Senate.
(B) The Committee on National Security, the Committee on
International Relations, and the Committee on Appropriations
of the House of Representatives.
(b) Matters To Be Specified in Reports.--Each such report
shall specify--
(1) the activities and forms of assistance for which the
Secretary of Defense plans to obligate funds;
(2) the amount of the proposed obligation; and
(3) the projected involvement (if any) of any department or
agency of the United States (in addition to the Department of
Defense) and of the private sector of the United States in
the activities and forms of assistance for which the
Secretary of Defense plans to obligate such funds.

SEC. 1206. REPORT ON ACCOUNTING FOR UNITED STATES ASSISTANCE.

(a) Report.--(1) The Secretary of Defense shall submit to
Congress an annual report on

[[Page H435]]
the efforts made by the United States (including efforts through the
use of audits, examinations, and on-site inspections) to
ensure that assistance provided under Cooperative Threat
Reduction programs is fully accounted for and that such
assistance is being used for its intended purposes.
(2) A report shall be submitted under this section not
later than January 31 of each year until the Cooperative
Threat Reduction programs are completed.
(b) Information To Be Included.--Each report under this
section shall include the following:
(1) A list of cooperative threat reduction assistance that
has been provided before the date of the report.
(2) A description of the current location of the assistance
provided and the current condition of such assistance.
(3) A determination of whether the assistance has been used
for its intended purpose.
(4) A description of the activities planned to be carried
out during the next fiscal year to ensure that cooperative
threat reduction assistance provided during that fiscal year
is fully accounted for and is used for its intended purpose.
(c) Comptroller General Assessment.--Not later than 30 days
after the date on which a report of the Secretary under
subsection (a) is submitted to Congress, the Comptroller
General of the United States shall submit to Congress a
report giving the Comptroller General's assessment of the
report and making any recommendations that the Comptroller
General considers appropriate.

SEC. 1207. LIMITATION ON ASSISTANCE TO NUCLEAR WEAPONS
SCIENTISTS OF FORMER SOVIET UNION.

Amounts appropriated pursuant to the authorization of
appropriations in section 301 for Cooperative Threat
Reduction programs may not be obligated for any program
established primarily to assist nuclear weapons scientists in
states of the former Soviet Union until 30 days after the
date on which the Secretary of Defense certifies in writing
to Congress that the funds to be obligated will not be used
(1) to contribute to the modernization of the strategic
nuclear forces of such states, or (2) for research,
development, or production of weapons of mass destruction.

SEC. 1208. LIMITATION RELATING TO OFFENSIVE BIOLOGICAL
WARFARE PROGRAM OF RUSSIA.

(a) Limitation.--Of the amount appropriated pursuant to the
authorization of appropriations in section 301 for
Cooperative Threat Reduction programs that is available for
the purpose stated in section 1202(a)(6), $60,000,000 may not
be obligated or expended until the President submits to
Congress either a certification as provided in subsection (b)
or a certification as provided in subsection (c).
(b) Certification With Respect to Offensive Biological
Warfare Program of Russia.--A certification under this
subsection is a certification by the President of each of the
following:
(1) That Russia is in compliance with its obligations under
the Biological Weapons Convention.
(2) That Russia has agreed with the United States and the
United Kingdom on a common set of procedures to govern visits
by officials of the United States and United Kingdom to
military biological facilities of Russia, as called for under
the Joint Statement on Biological Weapons issued by officials
of the United States, the United Kingdom, and Russia on
September 14, 1992.
(3) That visits by officials of the United States and
United Kingdom to the four declared military biological
facilities of Russia have occurred.
(c) Alternative Certification.--A certification under this
subsection is a certification by the President that the
President is unable to make a certification under subsection
(b).
(d) Use of Funds Upon Alternative Certification.--If the
President makes a certification under subsection (c), the
$60,000,000 specified in subsection (a)--
(1) shall not be available for the purpose stated in
section 1202(a)(6); and
(2) shall be available for activities in Ukraine,
Kazakhstan, and Belarus--
(A) for the elimination of strategic offensive weapons (in
addition to the amount specified in section 1202(a)(1)); and
(B) for nuclear infrastructure elimination (in addition to
the amount specified in section 1202(a)(4)).

SEC. 1209. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS
DESTRUCTION FACILITY.

(a) Limitation.--Of the amount appropriated pursuant to the
authorization of appropriations in section 301 for
Cooperative Threat Reduction programs that is available for
planning and design of a chemical weapons destruction
facility, not more than one-half of such amount may be
obligated or expended until the President certifies to
Congress the following:
(1) That the United States and Russia have completed a
joint laboratory study to determine the feasibility of an
appropriate technology for destruction of chemical weapons of
Russia.
(2) That Russia is making reasonable progress, with the
assistance of the United States (if necessary), toward the
completion of a comprehensive implementation plan for
managing and funding the dismantlement and destruction of
Russia's chemical weapons stockpile.
(3) That the United States and Russia have made substantial
progress toward resolution, to the satisfaction of the United
States, of outstanding compliance issues under the 1989
Wyoming Memorandum of Understanding and the 1990 Bilateral
Destruction Agreement.
(b) Definitions.--In this section:
(1) The term ``1989 Wyoming Memorandum of Understanding''
means the Memorandum of Understanding between the Government
of the United States of America and the Government of the
Union of Soviet Socialist Republics Regarding a Bilateral
Verification Experiment and Data Exchange Related to
Prohibition on Chemical Weapons, signed at Jackson Hole,
Wyoming, on September 23, 1989.
(2) The term ``1990 Bilateral Destruction Agreement'' means
the Agreement between the United States of America and the
Union of Soviet Socialist Republics on destruction and
nonproduction of chemical weapons and on measures to
facilitate the multilateral convention on banning chemical
weapons signed on June 1, 1990.
TITLE XIII--MATTERS RELATING TO OTHER NATIONS
Subtitle A--Peacekeeping Provisions

SEC. 1301. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS
FOR UNITED STATES SHARE OF COSTS OF UNITED
NATIONS PEACEKEEPING ACTIVITIES.

(a) In General.--Chapter 20 of title 10, United States
Code, is amended by inserting after section 404, the
following new section:

``Sec. 405. Use of Department of Defense funds for United
States share of costs of United Nations peacekeeping
activities: limitation

``(a) Prohibition on Use of Funds.--Funds available to the
Department of Defense may not be used to make a financial
contribution (directly or through another department or
agency of the United States) to the United Nations--
``(1) for the costs of a United Nations peacekeeping
activity; or
``(2) for any United States arrearage to the United
Nations.
``(b) Application of Prohibition.--The prohibition in
subsection (a) applies to voluntary contributions, as well as
to contributions pursuant to assessment by the United Nations
for the United States share of the costs of a peacekeeping
activity.''.
(b) Clerical Amendment.--The table of sections at the
beginning of subchapter I of such chapter is amended by
adding at the end the following new item:

``405. Use of Department of Defense funds for United States share of
costs of United Nations peacekeeping activities:
limitation.''.
Subtitle B--Humanitarian Assistance Programs

SEC. 1311. OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID
PROGRAMS.

(a) Covered Programs.--For purposes of section 301 and
other provisions of this Act, programs of the Department of
Defense designated as Overseas Humanitarian, Disaster, and
Civic Aid (OHDACA) programs are the programs provided by
sections 401, 402, 404, 2547, and 2551 of title 10, United
States Code.
(b) GAO Report.--Not later than March 1, 1996, the
Comptroller General of the United States shall provide to the
congressional defense committees a report on--
(1) existing funding mechanisms available to cover the
costs associated with the Overseas Humanitarian, Disaster,
and Civic Assistance activities through funds provided to the
Department of State or the Agency for International
Development, and
(2) if such mechanisms do not exist, actions necessary to
institute such mechanisms, including any changes in existing
law or regulations.

SEC. 1312. HUMANITARIAN ASSISTANCE.

Section 2551 of title 10, United States Code, is amended--
(1) by striking out subsections (b) and (c);
(2) by redesignating subsection (d) as subsection (b);
(3) by striking out subsection (e) and inserting in lieu
thereof the following:
``(c) Status Reports.--(1) The Secretary of Defense shall
submit to the congressional committees specified in
subsection (f) an annual report on the provision of
humanitarian assistance pursuant to this section for the
prior fiscal year. The report shall be submitted each year at
the time of the budget submission by the President for the
next fiscal year.
``(2) Each report required by paragraph (1) shall cover all
provisions of law that authorize appropriations for
humanitarian assistance to be available from the Department
of Defense for the purposes of this section.
``(3) Each report under this subsection shall set forth the
following information regarding activities during the
previous fiscal year:
``(A) The total amount of funds obligated for humanitarian
relief under this section.
``(B) The number of scheduled and completed transportation
missions for purposes of providing humanitarian assistance
under this section.
``(C) A description of any transfer of excess nonlethal
supplies of the Department of Defense made available for
humanitarian relief purposes under section 2547 of this
title. The description shall include the date of the
transfer, the entity to whom the transfer is made, and the
quantity of items transferred.'';
(4) by redesignating subsection (f) as subsection (d) and
in that subsection striking

[[Page H436]]
out ``the Committees on'' and all that follows through ``House of
Representatives of the'' and inserting in lieu thereof ``the
congressional committees specified in subsection (f) and the
Committees on Appropriations of the Senate and House of
Representatives of the'';
(5) by redesignating subsection (g) as subsection (e); and
(6) by adding at the end the following new subsection:
``(f) Congressional Committees.--The congressional
committees referred to in subsections (c)(1) and (d) are the
following:
``(1) The Committee on Armed Services and the Committee on
Foreign Relations of the Senate.
``(2) The Committee on National Security and the Committee
on International Relations of the House of
Representatives.''.

SEC. 1313. LANDMINE CLEARANCE PROGRAM.

(a) Inclusion in General Humanitarian Assistance Program.--
Subsection (e) of section 401 of title 10, United States
Code, is amended--
(1) by striking out ``means--'' and inserting in lieu
thereof ``means:'';
(2) by revising the first word in each of paragraphs (1)
through (4) so that the first letter of such word is upper
case;
(3) by striking out the semicolon at the end of paragraphs
(1) and (2) and inserting in lieu thereof a period;
(4) by striking out ``; and'' at the end of paragraph (3)
and inserting in lieu thereof a period; and
(5) by adding at the end the following new paragraph:
``(5) Detection and clearance of landmines, including
activities relating to the furnishing of education, training,
and technical assistance with respect to the detection and
clearance of landmines.''.
(b) Limitation on Landmine Assistance by Members of Armed
Forces.--Subsection (a) of such section is amended by adding
at the end the following new paragraph:
``(4) The Secretary of Defense shall ensure that no member
of the Armed Forces, while providing assistance under this
section that is described in subsection (e)(5)--
``(A) engages in the physical detection, lifting, or
destroying of landmines (unless the member does so for the
concurrent purpose of supporting a United States military
operation); or
``(B) provides such assistance as part of a military
operation that does not involve the Armed Forces.''.
(c) Repeal.--Section 1413 of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103-337;
108 Stat. 2913; 10 U.S.C. 401 note) is repealed.
Subtitle C--Arms Exports and Military Assistance

SEC. 1321. DEFENSE EXPORT LOAN GUARANTEES.

(a) Establishment of Program.--(1) Chapter 148 of title 10,
United States Code, is amended by adding at the end the
following new subchapter:

``SUBCHAPTER VI--DEFENSE EXPORT LOAN GUARANTEES

``Sec.
``2540. Establishment of loan guarantee program.
``2540a. Transferability.
``2540b. Limitations.
``2540c. Fees charged and collected.
``2540d. Definitions.

``Sec. 2540. Establishment of loan guarantee program

``(a) Establishment.--In order to meet the national
security objectives in section 2501(a) of this title, the
Secretary of Defense shall establish a program under which
the Secretary may issue guarantees assuring a lender against
losses of principal or interest, or both principal and
interest, arising out of the financing of the sale or long-
term lease of defense articles, defense services, or design
and construction services to a country referred to in
subsection (b).
``(b) Covered Countries.--The authority under subsection
(a) applies with respect to the following countries:
``(1) A member nation of the North Atlantic Treaty
Organization (NATO).
``(2) A country designated as of March 31, 1995, as a major
non-NATO ally pursuant to section 2350a(i)(3) of this title.
``(3) A country in Central Europe that, as determined by
the Secretary of State--
``(A) has changed its form of national government from a
nondemocratic form of government to a democratic form of
government since October 1, 1989; or
``(B) is in the process of changing its form of national
government from a nondemocratic form of government to a
democratic form of government.
``(4) A noncommunist country that was a member nation of
the Asia Pacific Economic Cooperation (APEC) as of October
31, 1993.
``(c) Authority Subject to Provisions of Appropriations.--
The Secretary may guarantee a loan under this subchapter only
to such extent or in such amounts as may be provided in
advance in appropriations Acts.

``Sec. 2540a. Transferability

``A guarantee issued under this subchapter shall be fully
and freely transferable.

``Sec. 2540b. Limitations

``(a) Terms and Conditions of Loan Guarantees.--In issuing
a guarantee under this subchapter for a medium-term or long-
term loan, the Secretary may not offer terms and conditions
more beneficial than those that would be provided to the
recipient by the Export-Import Bank of the United States
under similar circumstances in conjunction with the provision
of guarantees for nondefense articles and services.
``(b) Losses Arising From Fraud or Misrepresentation.--No
payment may be made under a guarantee issued under this
subchapter for a loss arising out of fraud or
misrepresentation for which the party seeking payment is
responsible.
``(c) No Right of Acceleration.--The Secretary of Defense
may not accelerate any guaranteed loan or increment, and may
not pay any amount, in respect of a guarantee issued under
this subchapter, other than in accordance with the original
payment terms of the loan.

``Sec. 2540c. Fees charged and collected

``(a) Exposure Fees.--The Secretary of Defense shall charge
a fee (known as `exposure fee') for each guarantee issued
under this subchapter.
``(b) Amount of Exposure Fee.--To the extent that the cost
of the loan guarantees under this subchapter is not otherwise
provided for in appropriations Acts, the fee imposed under
subsection (a) with respect to a loan guarantee shall be
fixed in an amount that is sufficient to meet potential
liabilities of the United States under the loan guarantee.
``(c) Payment Terms.--The fee under subsection (a) for each
guarantee shall become due as the guarantee is issued. In the
case of a guarantee for a loan which is disbursed
incrementally, and for which the guarantee is correspondingly
issued incrementally as portions of the loan are disbursed,
the fee shall be paid incrementally in proportion to the
amount of the guarantee that is issued.
``(d) Administrative Fees.--The Secretary of Defense shall
charge a fee for each guarantee issued under this subchapter
to reflect the additional administrative costs of the
Department of Defense that are directly attributable to the
administration of the program under this subchapter. Such
fees shall be credited to a special account in the Treasury.
Amounts in the special account shall be available, to the
extent and in amounts provided in appropriations Acts, for
paying the costs of administrative expenses of the Department
of Defense that are attributable to the loan guarantee
program under this subchapter.

``Sec. 2540d. Definitions

``In this subchapter:
``(1) The terms `defense article', `defense services', and
`design and construction services' have the meanings given
those terms in section 47 of the Arms Export Control Act (22
U.S.C. 2794).
``(2) The term `cost', with respect to a loan guarantee,
has the meaning given that term in section 502 of the
Congressional Budget and Impoundment Control Act of 1974 (2
U.S.C. 661a).''.
(2) The table of subchapters at the beginning of such
chapter is amended by adding at the end the following new
item:

``VI. Defense Export Loan Guarantees........................2540''.....

(b) Report.--Not later than two years after the date of the
enactment of this Act, the President shall submit to Congress
a report on the loan guarantee program established pursuant
to section 2540 of title 10, United States Code, as added by
subsection (a). The report shall include--
(1) an analysis of the costs and benefits of the loan
guarantee program; and
(2) any recommendations for modification of the program
that the President considers appropriate, including--
(A) any recommended addition to the list of countries for
which a guarantee may be issued under the program; and
(B) any proposed legislation necessary to authorize a
recommended modification.
(c) First Year Costs.--The Secretary of Defense shall make
available, from amounts appropriated to the Department of
Defense for fiscal year 1996 for operations and maintenance,
such amounts as may be necessary, not to exceed $500,000, for
the expenses of the Department of Defense during fiscal year
1996 that are directly attributable to the administration of
the defense export loan guarantee program under subchapter VI
of chapter 148 of title 10, United States Code, as added by
subsection (a).
(d) Replenishment of Operations and Maintenance Accounts
for First Year Costs.--The Secretary of Defense shall, using
funds in the special account referred to in section 2540c(d)
of title 10, United States Code (as added by subsection (b)),
replenish operations and maintenance accounts for amounts
expended from such accounts for expenses referred to in
subsection (c).

SEC. 1322. NATIONAL SECURITY IMPLICATIONS OF UNITED STATES
EXPORT CONTROL POLICY.

(a) Findings.--Congress makes the following findings:
(1) Export controls remain an important element of the
national security policy of the United States.
(2) It is in the national security interest that United
States export control policy be effective in preventing the
transfer, to potential adversaries or combatants of the
United States, of technology that threatens the national
security or defense of the United States.
(3) It is in the national security interest that the United
States monitor aggressively the export of militarily critical
technology in order to prevent its diversion to potential
adversaries or combatants of the United States.

[[Page H437]]

(4) The Department of Defense relies increasingly on
commercial and dual-use technologies, products, and processes
to support United States military capabilities and economic
strength.
(5) The maintenance of the military advantage of the United
States depends on effective export controls on dual-use items
and technologies that are critical to the military
capabilities of the Armed Forces.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the Secretary of Defense should evaluate license
applications for the export of militarily critical
commodities the export of which is controlled for national
security reasons if those commodities are to be exported to
certain countries of concern;
(2) the Secretary of Defense should identify the dual-use
items and technologies that are critical to the military
capabilities of the Armed Forces, including the military use
made of such items and technologies;
(3) upon identification by the Secretary of Defense of the
dual-use items and technologies referred to in paragraph (2),
the President should ensure effective export controls or use
unilateral export controls on dual-use items and technologies
that are critical to the military capabilities of the Armed
Forces (regardless of the availability of such items or
technologies overseas) with respect to the countries that--
(A) pose a threat to the national security interests of the
United States; and
(B) are not members in good standing of bilateral or
multilateral agreements to which the United States is a party
on the use of such items and technologies; and
(4) the President, upon recommendation of the Secretary of
Defense, should ensure effective controls on the re-export by
other countries of dual-use items and technologies that are
critical to the military capabilities of the Armed Forces.
(c) Annual Report.--(1) Not later than December 1 of each
year through 1999, the President shall submit to the
committees specified in paragraph (4) a report on the effect
of the export control policy of the United States on the
national security interests of the United States.
(2) The report shall include the following:
(A) A list setting forth each country determined by the
Secretary of Defense, the intelligence community, and other
appropriate agencies to be a rogue nation or potential
adversary or combatant of the United States.
(B) For each country so listed, a list of--
(i) the categories of items that the United States
currently prohibits for export to the country;
(ii) the categories of items that may be exported from the
United States with an individual license, and in such cases,
any licensing conditions normally required and the policy
grounds used for approvals and denials; and
(iii) the categories of items that may be exported under a
general license designated ``G-DEST''.
(C) For each category of items listed under subparagraph
(B)--
(i) a statement whether a prohibition, control, or
licensing requirement on a category of items is imposed
pursuant to an international multilateral agreement or is
unilateral;
(ii) a statement whether a prohibition, control, or
licensing requirement on a category of items is imposed by
the other members of an international agreement or is
unilateral;
(iii) when the answer under either clause (i) or clause
(ii) is unilateral, a statement concerning the efforts being
made to ensure that the prohibition, control, or licensing
requirement is made multilateral; and
(iv) a statement on what impact, if any, a unilateral
prohibition is having, or would have, on preventing the rogue
nation or potential adversary from attaining the items in
question for military purposes.
(D) A description of United States policy on sharing
satellite imagery that has military significance and a
discussion of the criteria for determining the imagery that
has that significance.
(E) A description of the relationship between United States
policy on the export of space launch vehicle technology and
the Missile Technology Control Regime.
(F) An assessment of United States efforts to support the
inclusion of additional countries in the Missile Technology
Control Regime.
(G) An assessment of the ongoing efforts made by potential
participant countries in the Missile Technology Control
Regime to meet the guidelines established by the Missile
Technology Control Regime.
(H) A discussion of the history of the space launch vehicle
programs of other countries, including a discussion of the
military origins and purposes of such programs and the
current level of military involvement in such programs.
(3) The President shall submit the report in unclassified
form, but may include a classified annex.
(4) The committees referred to in paragraph (1) are the
following:
(A) The Committee on Armed Services and the Committee on
Foreign Relations of the Senate.
(B) The Committee on National Security and the Committee on
International Relations of the House of Representatives.
(5) For purposes of this subsection, the term ``Missile
Technology Control Regime'' means the policy statement
announced on April 16, 1987, between the United States, the
United Kingdom, the Federal Republic of Germany, France,
Italy, Canada, and Japan to restrict sensitive missile-
relevant transfers based on the Missile Technology Control
Regime Annex, and any amendment thereto.

SEC. 1323. DEPARTMENT OF DEFENSE REVIEW OF EXPORT LICENSES
FOR CERTAIN BIOLOGICAL PATHOGENS.

(a) Department of Defense Review.--Any application to the
Secretary of Commerce for a license for the export of a class
2, class 3, or class 4 biological pathogen to a country
identified to the Secretary under subsection (c) as a country
that is known or suspected to have a biological weapons
program shall be referred to the Secretary of Defense for
review. The Secretary of Defense shall notify the Secretary
of Commerce within 15 days after receipt of an application
under the preceding sentence whether the export of such
biological pathogen pursuant to the license would be contrary
to the national security interests of the United States.
(b) Denial of License if Contrary to National Security
Interest.--A license described in subsection (a) shall be
denied by the Secretary of Commerce if it is determined that
the export of such biological pathogen to that country would
be contrary to the national security interests of the United
States.
(c) Identification of Countries Known or Suspected To Have
a Program To Develop Offensive Biological Weapons.--(1) The
Secretary of Defense shall determine, for the purposes of
this section, those countries that are known or suspected to
have a program to develop offensive biological weapons. Upon
making such determination, the Secretary shall provide to the
Secretary of Commerce a list of those countries.
(2) The Secretary of Defense shall update the list under
paragraph (1) on a regular basis. Whenever a country is added
to or deleted from such list, the Secretary shall notify the
Secretary of Commerce.
(3) Determination under this subsection of countries that
are known or suspected to have a program to develop offensive
biological weapons shall be made in consultation with the
Secretary of State and the intelligence community.
(d) Definition.--For purposes of this section, the term
``class 2, class 3, or class 4 biological pathogen'' means
any biological pathogen that is characterized by the Centers
for Disease Control as a class 2, class 3, or class 4
biological pathogen.

SEC. 1324. ANNUAL REPORTS ON IMPROVING EXPORT CONTROL
MECHANISMS AND ON MILITARY ASSISTANCE.

(a) Joint Reports by Secretaries of State and Commerce.--
Not later than April 1 of each of 1996 and 1997, the
Secretary of State and the Secretary of Commerce shall submit
to Congress a joint report, prepared in consultation with the
Secretary of Defense, relating to United States export-
control mechanisms. Each such report shall set forth measures
to be taken to strengthen United States export-control
mechanisms, including--
(1) steps being taken by each Secretary (A) to share on a
regular basis the export licensing watchlist of that
Secretary's department with the other Secretary, and (B) to
incorporate the export licensing watchlist data received from
the other Secretary into the watchlist of that Secretary's
department;
(2) steps being taken by each Secretary to incorporate into
the watchlist of that Secretary's department similar data
from systems maintained by the Department of Defense and the
United States Customs Service; and
(3) a description of such further measures to be taken to
strengthen United States export-control mechanisms as the
Secretaries consider to be appropriate.
(b) Reports by Inspectors General.--(1) Not later than
April 1 of each of 1996 and 1997, the Inspector General of
the Department of State and the Inspector General of the
Department of Commerce shall each submit to Congress a report
providing that official's evaluation of the effectiveness
during the preceding year of the export licensing watchlist
screening process of that official's department. The reports
shall be submitted in both a classified and unclassified
version.
(2) Each report of an Inspector General under paragraph (1)
shall (with respect to that official's department)--
(A) set forth the number of export licenses granted to
parties on the export licensing watchlist;
(B) set forth the number of end-use checks performed with
respect to export licenses granted to parties on the export
licensing watchlist the previous year;
(C) assess the screening process used in granting an export
license when an applicant is on the export licensing
watchlist; and
(D) assess the extent to which the export licensing
watchlist contains all relevant information and parties
required by statute or regulation.
(c) Annual Military Assistance Report.--The Foreign
Assistance Act of 1961 is amended by inserting after section
654 (22 U.S.C. 2414) the following new section:

``SEC. 655. ANNUAL REPORT ON MILITARY ASSISTANCE, MILITARY
EXPORTS, AND MILITARY IMPORTS.

``(a) Report Required.--Not later than February 1 of each
of 1996 and 1997, the President shall transmit to Congress a
report concerning military assistance authorized or furnished
for the fiscal year ending the previous September 30.
``(b) Information Relating to Military Assistance and
Military Exports.--Each

[[Page H438]]
such report shall show the aggregate dollar value and quantity of
defense articles (including excess defense articles) and
defense services, and of military education and training,
authorized or furnished by the United States to each foreign
country and international organization. The report shall
specify, by category, whether those articles and services,
and that education and training, were furnished by grant
under chapter 2 or chapter 5 of part II of this Act or by
sale under chapter 2 of the Arms Export Control Act or were
authorized by commercial sale licensed under section 38 of
the Arms Export Control Act.
``(c) Information Relating to Military Imports.--Each such
report shall also include the total amount of military items
of non-United States manufacture that were imported into the
United States during the fiscal year covered by the report.
The report shall show the country of origin, the type of item
being imported, and the total amount of items.''.

SEC. 1325. REPORT ON PERSONNEL REQUIREMENTS FOR CONTROL OF
TRANSFER OF CERTAIN WEAPONS.

Not later than 30 days after the date of the enactment of
this Act, the Secretary of Defense and the Secretary of
Energy shall submit to the committees of Congress referred to
in subsection (c) of section 1154 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 103-160;
107 Stat. 1761) the report required under subsection (a) of
that section. The Secretary of Defense and the Secretary of
Energy shall include with the report an explanation of the
failure of such Secretaries to submit the report in
accordance with such subsection (a) and with all other
previous requirements for the submittal of the report.
Subtitle D--Burdensharing and Other Cooperative Activities Involving
Allies and NATO

SEC. 1331. ACCOUNTING FOR BURDENSHARING CONTRIBUTIONS.

(a) Authority To Manage Contributions in Local Currency,
Etc.--Subsection (b) of section 2350j of title 10, United
States Code, is amended to read as follows:
``(b) Accounting.--Contributions accepted under subsection
(a) which are not related to security assistance may be
accepted, managed, and expended in dollars or in the currency
of the host nation (or, in the case of a contribution from a
regional organization, in the currency in which the
contribution was provided). Any such contribution shall be
placed in an account established for such purpose and shall
remain available until expended for the purposes specified in
subsection (c). The Secretary of Defense shall establish a
separate account for such purpose for each country or
regional organization from which such contributions are
accepted under subsection (a).''.
(b) Conforming Amendment.--Subsection (d) of such section
is amended by striking out ``credited under subsection (b) to
an appropriation account of the Department of Defense'' and
inserting in lieu thereof ``placed in an account established
under subsection (b)''.
(c) Technical Amendment.--Such section is further amended--
(1) in subsection (e)(1), by striking out ``a report to the
congressional defense committees'' and inserting in lieu
thereof ``to the congressional committees specified in
subsection (g) a report''; and
(2) by adding at the end the following new subsection:
``(g) Congressional Committees.--The congressional
committees referred to in subsection (e)(1) are--
``(1) the Committee on Armed Services and the Committee on
Appropriations of the Senate; and
``(2) the Committee on National Security and the Committee
on Appropriations of the House of Representatives.''.

SEC. 1332. AUTHORITY TO ACCEPT CONTRIBUTIONS FOR EXPENSES OF
RELOCATION WITHIN HOST NATION OF UNITED STATES
ARMED FORCES OVERSEAS.

(a) In General.--(1) Subchapter II of chapter 138 of title
10, United States Code, is amended by adding at the end the
following new section:

``Sec. 2350k. Relocation within host nation of elements of
armed forces overseas

``(a) Authority To Accept Contributions.--The Secretary of
Defense may accept contributions from any nation because of
or in support of the relocation of elements of the armed
forces from or to any location within that nation. Such
contributions may be accepted in dollars or in the currency
of the host nation. Any such contribution shall be placed in
an account established for such purpose and shall remain
available until expended for the purposes specified in
subsection (b). The Secretary shall establish a separate
account for such purpose for each country from which such
contributions are accepted.
``(b) Use of Contributions.--The Secretary may use a
contribution accepted under subsection (a) only for payment
of costs incurred in connection with the relocation
concerning which the contribution was made. Those costs
include the following:
``(1) Design and construction services, including
development and review of statements of work, master plans
and designs, acquisition of construction, and supervision and
administration of contracts relating thereto.
``(2) Transportation and movement services, including
packing, unpacking, storage, and transportation.
``(3) Communications services, including installation and
deinstallation of communications equipment, transmission of
messages and data, and rental of transmission capability.
``(4) Supply and administration, including acquisition of
expendable office supplies, rental of office space, budgeting
and accounting services, auditing services, secretarial
services, and translation services.
``(5) Personnel costs, including salary, allowances and
overhead of employees whether full-time or part-time,
temporary or permanent (except for military personnel), and
travel and temporary duty costs.
``(6) All other clearly identifiable expenses directly
related to relocation.
``(c) Method of Contribution.--Contributions may be
accepted in any of the following forms:
``(1) Irrevocable letter of credit issued by a financial
institution acceptable to the Treasurer of the United States.
``(2) Drawing rights on a commercial bank account
established and funded by the host nation, which account is
blocked such that funds deposited cannot be withdrawn except
by or with the approval of the United States.
``(3) Cash, which shall be deposited in a separate trust
fund in the United States Treasury pending expenditure and
which shall accrue interest in accordance with section 9702
of title 31.
``(d) Annual Report to Congress.--Not later than 30 days
after the end of each fiscal year, the Secretary shall submit
to Congress a report specifying--
``(1) the amount of the contributions accepted by the
Secretary during the preceding fiscal year under subsection
(a) and the purposes for which the contributions were made;
and
``(2) the amount of the contributions expended by the
Secretary during the preceding fiscal year and the purposes
for which the contributions were expended.''.
(2) The table of sections at the beginning of subchapter II
of chapter 138 of such title is amended by adding at the end
the following new item:

``2350k. Relocation within host nation of elements of armed forces
overseas.''.

(b) Effective Date.--Section 2350k of title 10, United
States Code, as added by subsection (a), shall take effect on
the date of the enactment of this Act and shall apply to
contributions for relocation of elements of the Armed Forces
in or to any nation received on or after such date.

SEC. 1333. REVISED GOAL FOR ALLIED SHARE OF COSTS FOR UNITED
STATES INSTALLATIONS IN EUROPE.

Section 1304(a) of the National Defense Authorization Act
for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2890) is
amended--
(1) by inserting ``(1)'' after ``so that''; and
(2) by inserting before the period at the end the
following: ``, and (2) by September 30, 1997, those nations
have assumed 42.5 percent of such costs''.

SEC. 1334. EXCLUSION OF CERTAIN FORCES FROM EUROPEAN END
STRENGTH LIMITATION.

(a) Exclusion of Members Performing Duties Under Military-
To-Military Contact Program.--Paragraph (3) of section
1002(c) of the Department of Defense Authorization Act, 1985
(22 U.S.C. 1928 note) is amended to read as follows:
``(3) For purposes of this subsection, the following
members of the Armed Forces are excluded in calculating the
end strength level of members of the Armed Forces of the
United States assigned to permanent duty ashore in European
member nations of NATO:
``(A) Members assigned to permanent duty ashore in Iceland,
Greenland, and the Azores.
``(B) Members performing duties in Europe for more than 179
days under a military-to-military contact program under
section 168 of title 10, United States Code.''.

SEC. 1335. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS
WITH NATO ORGANIZATIONS.

Section 2350b(e) of title 10, United States Code, is
amended--
(1) in paragraph (1), by inserting ``or a NATO
organization'' after ``a participant (other than the United
States)''; and
(2) in paragraph (2), by striking out ``a cooperative
project'' and inserting in lieu thereof ``such a cooperative
project or a NATO organization''.

SEC. 1336. SUPPORT SERVICES FOR THE NAVY AT THE PORT OF
HAIFA, ISRAEL.

(a) Sense of Congress.--It is the sense of Congress that
the Secretary of Defense should promptly seek to undertake
such actions as are necessary--
(1) to ensure that suitable port services are available to
the Navy at the Port of Haifa, Israel; and
(2) to ensure the availability to the Navy of suitable
services at that port in light of the continuing increase in
commercial activities at the port.
(b) Report.--Not later than 30 days after the date of the
enactment of this Act, the Secretary of the Navy shall submit
to Congress a report on the availablity of port services for
the Navy in the eastern Mediterranean Sea region. The report
shall specify--
(1) the services required by the Navy when calling at the
port of Haifa, Israel; and
(2) the availability of those services at ports elsewhere
in the region.

[[Page H439]]

Subtitle E--Other Matters

SEC. 1341. PROHIBITION ON FINANCIAL ASSISTANCE TO TERRORIST
COUNTRIES.

(a) Prohibition.--Subchapter I of chapter 134 of title 10,
United States Code, is amended by adding at the end the
following:

``Sec. 2249a. Prohibition on providing financial assistance
to terrorist countries

``(a) Prohibition.--Funds available to the Department of
Defense may not be obligated or expended to provide financial
assistance to--
``(1) any country with respect to which the Secretary of
State has made a determination under section 6(j)(1)(A) of
the Export Administration Act of 1979 (50 App. 2405(j));
``(2) any country identified in the latest report submitted
to Congress under section 140 of the Foreign Relations
Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C.
2656f), as providing significant support for international
terrorism; or
``(3) any other country that, as determined by the
President--
``(A) grants sanctuary from prosecution to any individual
or group that has committed an act of international
terrorism; or
``(B) otherwise supports international terrorism.
``(b) Waiver.--(1) The President may waive the application
of subsection (a) to a country if the President determines--
``(A) that it is in the national security interests of the
United States to do so; or
``(B) that the waiver should be granted for humanitarian
reasons.
``(2) The President shall--
``(A) notify the Committee on Armed Services and the
Committee on Foreign Relations of the Senate and the
Committee on National Security and the Committee on
International Relations of the House of Representatives at
least 15 days before the waiver takes effect; and
``(B) publish a notice of the waiver in the Federal
Register.
``(c) Definition.--In this section, the term `international
terrorism' has the meaning given that term in section
140(d) of the Foreign Relations Authorization Act, Fiscal
Years 1988 and 1989 (22 U.S.C. 2656f(d)).''.
(b) Clerical Amendment.--The table of sections at the
beginning of subchapter I of such chapter is amended by
adding at the end the following:
``2249a. Prohibition on providing financial assistance to terrorist
countries.''.

SEC. 1342. JUDICIAL ASSISTANCE TO THE INTERNATIONAL TRIBUNAL
FOR YUGOSLAVIA AND TO THE INTERNATIONAL
TRIBUNAL FOR RWANDA.

(a) Surrender of Persons.--
(1) Application of united states extradition laws.--Except
as provided in paragraphs (2) and (3), the provisions of
chapter 209 of title 18, United States Code, relating to the
extradition of persons to a foreign country pursuant to a
treaty or convention for extradition between the United
States and a foreign government, shall apply in the same
manner and extent to the surrender of persons, including
United States citizens, to--
(A) the International Tribunal for Yugoslavia, pursuant to
the Agreement Between the United States and the International
Tribunal for Yugoslavia; and
(B) the International Tribunal for Rwanda, pursuant to the
Agreement Between the United States and the International
Tribunal for Rwanda.
(2) Evidence on hearings.--For purposes of applying section
3190 of title 18, United States Code, in accordance with
paragraph (1), the certification referred to in that section
may be made by the principal diplomatic or consular officer
of the United States resident in such foreign countries where
the International Tribunal for Yugoslavia or the
International Tribunal for Rwanda may be permanently or
temporarily situated.
(3) Payment of fees and costs.--(A) The provisions of the
Agreement Between the United States and the International
Tribunal for Yugoslavia and of the Agreement Between the
United States and the International Tribunal for Rwanda shall
apply in lieu of the provisions of section 3195 of title 18,
United States Code, with respect to the payment of expenses
arising from the surrender by the United States of a person
to the International Tribunal for Yugoslavia or the
International Tribunal for Rwanda, respectively, or from any
proceedings in the United States relating to such surrender.
(B) The authority of subparagraph (A) may be exercised only
to the extent and in the amounts provided in advance in
appropriations Acts.
(4) Nonapplicability of the federal rules.--The Federal
Rules of Evidence and the Federal Rules of Criminal Procedure
do not apply to proceedings for the surrender of persons to
the International Tribunal for Yugoslavia or the
International Tribunal for Rwanda.
(b) Assistance to Foreign and International Tribunals and
to Litigants Before Such Tribunals.--Section 1782(a) of title
28, United States Code, is amended by inserting in the first
sentence after ``foreign or international tribunal'' the
following: ``, including criminal investigations conducted
before formal accusation''.
(c) Definitions.--For purposes of this section:
(1) International tribunal for yugoslavia.--The term
``International Tribunal for Yugoslavia'' means the
International Tribunal for the Prosecution of Persons
Responsible for Serious Violations of International
Humanitarian Law in the Territory of the Former Yugoslavia,
as established by United Nations Security Council Resolution
827 of May 25, 1993.
(2) International tribunal for rwanda.--The term
``International Tribunal for Rwanda'' means the International
Tribunal for the Prosecution of Persons Responsible for
Genocide and Other Serious Violations of International
Humanitarian Law Committed in the Territory of Rwanda and
Rwandan Citizens Responsible for Genocide and Other Such
Violations Committed in the Territory of Neighboring States,
as established by United Nations Security Council Resolution
955 of November 8, 1994.
(3) Agreement between the united states and the
international tribunal for yugoslavia.--The term ``Agreement
Between the United States and the International Tribunal for
Yugoslavia'' means the Agreement on Surrender of Persons
Between the Government of the United States and the
International Tribunal for the Prosecution of Persons
Responsible for Serious Violations of International Law in
the Territory of the Former Yugoslavia, signed at The Hague,
October 5, 1994.
(4) Agreement between the united states and the
international tribunal for rwanda.--The term ``Agreement
between the United States and the International Tribunal for
Rwanda'' means the Agreement on Surrender of Persons Between
the Government of the United States and the International
Tribunal for the Prosecution of Persons Responsible for
Genocide and Other Serious Violations of International
Humanitarian Law Committed in the Territory of Rwanda and
Rwandan Citizens Responsible for Genocide and Other Such
Violations Committed in the Territory of Neighboring States,
signed at The Hague, January 24, 1995.

SEC. 1343. SEMIANNUAL REPORTS CONCERNING UNITED STATES-
PEOPLE'S REPUBLIC OF CHINA JOINT DEFENSE
CONVERSION COMMISSION.

(a) Reports Required.--The Secretary of Defense shall
submit to Congress a semiannual report on the United States-
People's Republic of China Joint Defense Conversion
Commission. Each such report shall include the following:
(1) A description of the extent to which the activities
conducted in, through, or as a result of the Commission could
have directly or indirectly assisted, or may directly or
indirectly assist, the military modernization efforts of the
People's Republic of China.
(2) A discussion of the activities and operations of the
Commission, including--
(A) United States funding;
(B) a listing of participating United States officials;
(C) specification of meeting dates and locations
(prospective and retrospective);
(D) summary of discussions; and
(E) copies of any agreements reached.
(3) A discussion of the relationship between the ``defense
conversion'' activities of the People's Republic of China and
its defense modernization efforts.
(4) A discussion of the extent to which United States
business activities pursued, or proposed to be pursued, under
the imprimatur of the Commission, or the importation of
western technology in general, contributes to the
modernization of China's military industrial base, including
any steps taken by the United States or by United States
commercial entities to safeguard the technology or
intellectual property rights associated with any materials or
information transferred.
(5) An assessment of the benefits derived by the United
States from its participation in the Commission, including
whether or to what extent United States participation in the
Commission has resulted or will result in the following:
(A) Increased transparency in the current and projected
military budget and doctrine of the People's Republic of
China.
(B) Improved behavior and cooperation by the People's
Republic of China in the areas of missile and nuclear
proliferation.
(C) Increased transparency in the plans of the People's
Republic of China's for nuclear and missile force
modernization and testing.
(6) Efforts undertaken by the Secretary of Defense to--
(A) establish a list of enterprises controlled by the
People's Liberation Army, including those which have been
successfully converted to produce products solely for
civilian use; and
(B) provide estimates of the total revenues of those
enterprises.
(7) A description of current or proposed mechanisms for
improving the ability of the United States to track the flow
of revenues from the enterprises specified on the list
established under paragraph (6)(A).
(b) Submittal of Reports.--A report shall be submitted
under subsection (a) not later than August 1 of each year
with respect to the first six months of that year and shall
be submitted not later than February 1 of each year with
respect to the last six months of the preceding year. The
first report under such subsection shall be submitted not
less than 60 days after the date of the enactment of this Act
and shall apply with respect to the six-month period
preceding the date of the enactment of this Act.
(c) Final Report Upon Termination of Commission.--Upon the
termination of the United States-People's Republic of China
Joint Defense Conversion Commission, the

[[Page H440]]
Secretary of Defense shall submit a final report under this section
covering the period from the end of the period covered by the
last such report through the termination of the Commission,
and subsection (a) shall cease to apply after the submission
of such report.
TITLE XIV--ARMS CONTROL MATTERS

SEC. 1401. REVISION OF DEFINITION OF LANDMINE FOR PURPOSES OF
LANDMINE EXPORT MORATORIUM.

Section 1423(d) of the National Defense Authorization Act
for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1832) is
amended--
(1) by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C), respectively;
(2) in subparagraph (C), as so redesignated, by striking
out ``by remote control or'';
(3) by inserting ``(1)'' before ``For purposes of''; and
(4) by adding at the end the following new paragraph:
``(2) The term does not include command detonated
antipersonnel land mines (such as the M18A1 `Claymore'
mine).''.

SEC. 1402. REPORTS ON MORATORIUM ON USE BY ARMED FORCES OF
ANTIPERSONNEL LANDMINES.

Not later than April 30 of each of 1996, 1997, and 1998,
the Chairman of the Joint Chiefs of Staff shall submit to the
congressional defense committees a report on the projected
effects of a moratorium on the defensive use of antipersonnel
mines and antitank mines by the Armed Forces. The report
shall include a discussion of the following matters:
(1) The extent to which current doctrine and practices of
the Armed Forces on the defensive use of antipersonnel mines
and antitank mines adhere to applicable international law.
(2) The effects that a moratorium would have on the
defensive use of the current United States inventory of
remotely delivered, self-destructing antitank systems,
antipersonnel mines, and antitank mines.
(3) The reliability of the self-destructing antipersonnel
mines and self-destructing antitank mines of the United
States.
(4) The cost of clearing the antipersonnel minefields
currently protecting Naval Station Guantanamo Bay, Cuba, and
other United States installations.
(5) The cost of replacing antipersonnel mines in such
minefields with substitute systems such as the Claymore mine,
and the level of protection that would be afforded by use of
such a substitute.
(6) The extent to which the defensive use of antipersonnel
mines and antitank mines by the Armed Forces is a source of
civilian casualties around the world, and the extent to which
the United States, and the Department of Defense
particularly, contributes to alleviating the illegal and
indiscriminate use of such munitions.
(7) The extent to which the threat to the security of
United States forces during operations other than war and
combat operations would increase as a result of such a
moratorium.

SEC. 1403. EXTENSION AND AMENDMENT OF COUNTER-PROLIFERATION
AUTHORITIES.

(a) One-Year Extension of Program.--Section 1505 of the
Weapons of Mass Destruction Control Act of 1992 (title XV of
Public Law 102-484; 22 U.S.C. 5859a) is amended--
(1) in subsection (a), by striking out ``during fiscal
years 1994 and 1995'';
(2) in subsection (e)(1), by striking out ``fiscal years
1994 and 1995'' and inserting in lieu thereof ``a fiscal year
during which the authority of the Secretary of Defense to
provide assistance under this section is in effect''; and
(3) by adding at the end the following new subsection:
``(f) Termination of Authority.--The authority of the
Secretary of Defense to provide assistance under this section
terminates at the close of fiscal year 1996.''.
(b) Program Authorities.--(1) Subsections (b)(2) and (d)(3)
of such section are amended by striking out ``the On-Site
Inspection Agency'' and inserting in lieu thereof ``the
Department of Defense''.
(2) Subsection (c)(3) of such section is amended by
striking out ``will be counted'' and all that follows and
inserting in lieu thereof ``will be counted as discretionary
spending in the national defense budget function (function
050).''.
(c) Amount of Assistance.--Subsection (d) of such section
is amended--
(1) in paragraph (1)--
(A) by striking out ``for fiscal year 1994'' the first
place it appears and all that follows through the period at
the end of the second sentence and inserting in lieu thereof
``for any fiscal year shall be derived from amounts made
available to the Department of Defense for that fiscal
year.''; and
(B) by striking out ``referred to in this paragraph''; and
(2) in paragraph (3)--
(A) by striking out ``may not exceed'' and all that follows
through ``1995''; and
(B) by inserting before the period at the end the
following: ``, may not exceed $25,000,000 for fiscal year
1994, $20,000,000 for fiscal year 1995, or $15,000,000 for
fiscal year 1996''.

SEC. 1404. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF
STRATEGIC NUCLEAR DELIVERY SYSTEMS.

(a) Sense of Congress.--It is the sense of Congress that,
unless and until the START II Treaty enters into force, the
Secretary of Defense should not take any action to retire or
dismantle, or to prepare to retire or dismantle, any of the
following strategic nuclear delivery systems:
(1) B-52H bomber aircraft.
(2) Trident ballistic missile submarines.
(3) Minuteman III intercontinental ballistic missiles.
(4) Peacekeeper intercontinental ballistic missiles.
(b) Limitation on Use of Funds.--Funds available to the
Department of Defense may not be obligated or expended during
fiscal year 1996 for retiring or dismantling, or for
preparing to retire or dismantle, any of the strategic
nuclear delivery systems specified in subsection (a).

SEC. 1405. CONGRESSIONAL FINDINGS AND SENSE OF CONGRESS
CONCERNING TREATY VIOLATIONS.

(a) Reaffirmation of Prior Findings Concerning the
Krasnoyarsk Radar.--Congress, noting its previous findings
with respect to the large phased-array radar of the Soviet
Union known as the ``Krasnoyarsk radar'' stated in paragraphs
(1) through (4) of section 902(a) of the National Defense
Authorization Act for Fiscal Years 1988 and 1989 (Public Law
100-180; 101 Stat. 1135) (and reaffirmed in section 1006(a)
of the National Defense Authorization Act for Fiscal Years
1990 and 1991 (Public Law 101-189; 103 Stat. 1543)), hereby
reaffirms those findings as follows:
(1) The 1972 Anti-Ballistic Missile Treaty prohibits each
party from deploying ballistic missile early warning radars
except at locations along the periphery of its national
territory and oriented outward.
(2) The 1972 Anti-Ballistic Missile Treaty prohibits each
party from deploying an ABM system to defend its national
territory and from providing a base for any such nationwide
defense.
(3) Large phased-array radars were recognized during
negotiation of the Anti-Ballistic Missile Treaty as the
critical long lead-time element of a nationwide defense
against ballistic missiles.
(4) In 1983 the United States discovered the construction,
in the interior of the Soviet Union near the town of
Krasnoyarsk, of a large phased-array radar that has
subsequently been judged to be for ballistic missile early
warning and tracking.
(b) Further Reference to 1987 Congressional Statements.--
Congress further notes that in section 902 of the National
Defense Authorization Act for Fiscal Years 1988 and 1989
(Public Law 100-180; 101 Stat. 1135) Congress also--
(1) noted that the President had certified that the
Krasnoyarsk radar was an unequivocal violation of the 1972
Anti-Ballistic Missile Treaty; and
(2) stated it to be the sense of the Congress that the
Soviet Union was in violation of its legal obligation under
that treaty.
(c) Further Reference to 1989 Congressional Statements.--
Congress further notes that in section 1006(b) of the
National Defense Authorization Act for Fiscal Years 1990 and
1991 (Public Law 101-189; 103 Stat. 1543) Congress also--
(1) again noted that in 1987 the President declared that
radar to be a clear violation of the 1972 Anti-Ballistic
Missile Treaty and noted that on October 23, 1989, the
Foreign Minister of the Soviet Union conceded that the
Krasnoyarsk radar is a violation of the 1972 Anti-Ballistic
Missile Treaty; and
(2) stated it to be the sense of the Congress that the
Soviet Union should dismantle the Krasnoyarsk radar
expeditiously and without conditions and that until such
radar was completely dismantled it would remain a clear
violation of the 1972 Anti-Ballistic Missile Treaty.
(d) Additional Findings.--Congress also finds, with respect
to the Krasnoyarsk radar, that retired Soviet General Y.V.
Votintsev, Director of the Soviet National Air Defense Forces
from 1967 to 1985, has publicly stated--
(1) that he was directed by the Chief of the Soviet General
staff to locate the large phased-array radar at Krasnoyarsk
despite the recognition by Soviet authorities that the
location of such a radar at that location would be a clear
violation of the 1972 Anti-Ballistic Missile Treaty; and
(2) that Marshal D.F. Ustinov, Soviet Minister of Defense,
threatened to relieve from duty any Soviet officer who
continued to object to the construction of a large-phased
array radar at Krasnoyarsk.
(e) Sense of Congress Concerning Soviet Treaty
Violations.--It is the sense of Congress that the government
of the Soviet Union intentionally violated its legal
obligations under the 1972 Anti-Ballistic Missile Treaty in
order to advance its national security interests.
(f) Sense of Congress Concerning Compliance by Russia With
Arms Control Obligations.--In light of subsections (a)
through (e), it is the sense of Congress that the United
States should remain vigilant in ensuring compliance by
Russia with its arms control obligations and should, when
pursuing future arms control agreements with Russia, bear in
mind violations of arms control obligations by the Soviet
Union.

SEC. 1406. SENSE OF CONGRESS ON RATIFICATION OF CHEMICAL
WEAPONS CONVENTION AND START II TREATY.

(a) Findings.--Congress makes the following findings:
(1) Proliferation of chemical or nuclear weapons materials
poses a danger to United States national security, and the
threat or use of such materials by terrorists would directly
threaten United States citizens at home and abroad.

[[Page H441]]

(2) Events such as the March 1995 terrorist release of a
chemical nerve agent in the Tokyo subway, the threatened use
of chemical weapons during the 1991 Persian Gulf War, and the
widespread use of chemical weapons during the Iran-Iraq
War of the 1980's are all potent reminders of the menace
posed by chemical weapons, of the fact that the threat of
chemical weapons is not sufficiently addressed, and of the
need to outlaw the development, production, and possession
of chemical weapons.
(3) The Chemical Weapons Convention negotiated and signed
by President Bush would make it more difficult for would-be
proliferators, including terrorists, to acquire or use
chemical weapons, if ratified and fully implemented, as
signed, by all signatories.
(4) United States military authorities, including Chairman
of the Joint Chiefs of Staff General John Shalikashvili, have
stated that United States military forces will deter and
respond to chemical weapons threats with a robust chemical
defense and an overwhelming superior conventional response,
as demonstrated in the Persian Gulf War, and have testified
in support of the ratification of the Chemical Weapons
Convention.
(5) The United States intelligence community has testified
that the Convention will provide new and important sources of
information, through regular data exchanges and routine and
challenge inspections, to improve the ability of the United
States to assess the chemical weapons status in countries of
concern.
(6) The Convention has not entered into force for lack of
the requisite number of ratifications.
(7) Russia has signed the Convention, but has not yet
ratified it.
(8) There have been reports by Russian sources of continued
Russian production and testing of chemical weapons, including
a statement by a spokesman of the Russian Ministry of Defense
on December 5, 1994, that ``We cannot say that all chemical
weapons production and testing has stopped altogether.''.
(9) The Convention will impose a legally binding obligation
on Russia and other nations that possess chemical weapons and
that ratify the Convention to cease offensive chemical
weapons activities and to destroy their chemical weapons
stockpiles and production facilities.
(10) The United States must be prepared to exercise fully
its rights under the Convention, including the request of
challenge inspections when warranted, and to exercise
leadership in pursuing punitive measures against violators of
the Convention, when warranted.
(11) The United States should strongly encourage full
implementation at the earliest possible date of the terms and
conditions of the United States-Russia bilateral chemical
weapons destruction agreement signed in 1990.
(12) The START II Treaty negotiated and signed by President
Bush would help reduce the danger of potential proliferators,
including terrorists, acquiring nuclear warheads and
materials, and would contribute to United States-Russian
bilateral efforts to secure and dismantle nuclear warheads,
if ratified and fully implemented as signed by both parties.
(13) It is in the national security interest of the United
States to take effective steps to make it more difficult for
proliferators or would-be terrorists to obtain chemical or
nuclear materials for use in weapons.
(14) The President has urged prompt Senate action on, and
advice and consent to ratification of, the START II Treaty
and the Chemical Weapons Convention.
(15) The Chairman of the Joint Chiefs of Staff has
testified to Congress that ratification and full
implementation of both treaties by all parties is in the
United States national interest and has strongly urged prompt
Senate advice and consent to their ratification.
(b) Sense of Congress.--It is the sense of Congress that
the United States, Russia, and all other parties to the START
II Treaty and the Chemical Weapons Convention should promptly
ratify and fully implement, as negotiated, both treaties.

SEC. 1407. IMPLEMENTATION OF ARMS CONTROL AGREEMENTS.

(a) Funding.--Of the amounts appropriated pursuant to
authorizations in sections 102, 103, 104, 201, and 301, the
Secretary of Defense may use an amount not to exceed
$239,941,000 for implementing arms control agreements to
which the United States is a party.
(b) Limitation.--(1) Funds made available pursuant to
subsection (a) for the costs of implementing an arms control
agreement may not (except as provided in paragraph (2)) be
used to reimburse expenses incurred by any other party to the
agreement for which (without regard to any executive
agreement or any policy not part of an arms control
agreement)--
(A) the other party is responsible under the terms of the
arms control agreement; and
(B) the United States has no responsibility under the
agreement.
(2) The limitation in paragraph (1) does not apply to a use
of funds to carry out an arms control expenses reimbursement
policy of the United States described in subsection (c).
(c) Covered Arms Control Expenses Reimbursement Policies.--
Subsection (b)(2) applies to a policy of the United States to
reimburse expenses incurred by another party to an arms
control agreement if--
(1) the policy does not modify any obligation imposed by
the arms control agreement;
(2) the President--
(A) issued or approved the policy before the date of the
enactment of this Act; or
(B) entered into an agreement on the policy with the
government of another country or approved an agreement on the
policy entered into by an official of the United States and
the government of another country; and
(3) the President has notified the designated congressional
committees of the policy or the policy agreement (as the case
may be), in writing, at least 30 days before the date on
which the President issued or approved the policy or has
entered into or approved the policy agreement.
(d) Definitions.--For the purposes of this section:
(1) The term ``arms control agreement'' means an arms
control treaty or other form of international arms control
agreement.
(2) The term ``executive agreement'' means an international
agreement entered into by the President that is not
authorized by law or entered into as a Treaty to which the
Senate has given its advice and consent to ratification.
(3) The term ``designated congressional committees'' means
the following:
(A) The Committee on Foreign Relations, the Committee on
Armed Services, and the Committee on Appropriations of the
Senate.
(B) The Committee on International Relations, the Committee
on National Security, and the Committee on Appropriations of
the House of Representatives.

SEC. 1408. IRAN AND IRAQ ARMS NONPROLIFERATION.

(a) Sanctions Against Transfers of Persons.--Section
1604(a) of the Iran-Iraq Arms Non-Proliferation Act of 1992
(title XVI of Public Law 102-484; 50 U.S.C. 1701 note) is
amended by inserting ``to acquire chemical, biological, or
nuclear weapons or'' before ``to acquire''.
(b) Sanctions Against Transfers of Foreign Countries.--
Section 1605(a) of such Act is amended by inserting ``to
acquire chemical, biological, or nuclear weapons or'' before
``to acquire''.
(c) Clarification of United States Assistance.--
Subparagraph (A) of section 1608(7) of such Act is amended to
read as follows:
``(A) any assistance under the Foreign Assistance Act of
1961 (22 U.S.C. 2151 et seq.), other than urgent humanitarian
assistance or medicine;''.
(d) Notification of Certain Waivers Under MTCR
Procedures.--Section 73(e)(2) of the Arms Export Control Act
(22 U.S.C. 2797b(e)(2)) is amended--
(1) by striking out ``the Congress'' and inserting in lieu
thereof ``the Committee on Armed Services and the Committee
on Foreign Relations of the Senate and the Committee on
National Security and the Committee on International
Relations of the House of Representatives''; and
(2) by striking out ``20 working days'' and inserting in
lieu thereof ``45 working days''.
TITLE XV--TECHNICAL AND CLERICAL AMENDMENTS

SEC. 1501. AMENDMENTS RELATED TO RESERVE OFFICER PERSONNEL
MANAGEMENT ACT.

(a) Public Law 103-337.--The Reserve Officer Personnel
Management Act (title XVI of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103-337))
is amended as follows:
(1) Section 1624 (108 Stat. 2961) is amended--
(A) by striking out ``641'' and all that follows through
``(2)'' and inserting in lieu thereof ``620 is amended''; and
(B) by redesignating as subsection (d) the subsection added
by the amendment made by that section.
(2) Section 1625 (108 Stat. 2962) is amended by striking
out ``Section 689'' and inserting in lieu thereof ``Section
12320''.
(3) Section 1626(1) (108 Stat. 2962) is amended by striking
out ``(W-5)'' in the second quoted matter therein and
inserting in lieu thereof ``, W-5,''.
(4) Section 1627 (108 Stat. 2962) is amended by striking
out ``Section 1005(b)'' and inserting in lieu thereof
``Section 12645(b)''.
(5) Section 1631 (108 Stat. 2964) is amended--
(A) in subsection (a), by striking out ``Section 510'' and
inserting in lieu thereof ``Section 12102''; and
(B) in subsection (b), by striking out ``Section 591'' and
inserting in lieu thereof ``Section 12201''.
(6) Section 1632 (108 Stat. 2965) is amended by striking
out ``Section 593(a)'' and inserting in lieu thereof
``Section 12203(a)''.
(7) Section 1635(a) (108 Stat. 2968) is amended by striking
out ``section 1291'' and inserting in lieu thereof ``section
1691(b)''.
(8) Section 1671 (108 Stat. 3013) is amended--
(A) in subsection (b)(3), by striking out ``512, and 517''
and inserting in lieu thereof ``and 512''; and
(B) in subsection (c)(2), by striking out the comma after
``861'' in the first quoted matter therein.
(9) Section 1684(b) (108 Stat. 3024) is amended by striking
out ``section 14110(d)'' and inserting in lieu thereof
``section 14111(c)''.
(b) Subtitle E of Title 10.--Subtitle E of title 10, United
States Code, is amended as follows:
(1) The tables of chapters preceding part I and at the
beginning of part IV are amended by striking out
``Repayments'' in the item

[[Page H442]]
relating to chapter 1609 and inserting in lieu thereof ``Repayment
Programs''.
(2)(A) The heading for section 10103 is amended to read as
follows:

``Sec. 10103. Basic policy for order into Federal service''.

(B) The item relating to section 10103 in the table of
sections at the beginning of chapter 1003 is amended to read
as follows:

``10103. Basic policy for order into Federal service.''.

(3) The table of sections at the beginning of chapter 1005
is amended by striking out the third word in the item
relating to section 10142.
(4) The table of sections at the beginning of chapter 1007
is amended--
(A) by striking out the third word in the item relating to
section 10205; and
(B) by capitalizing the initial letter of the sixth word in
the item relating to section 10211.
(5) The table of sections at the beginning of chapter 1011
is amended by inserting ``Sec.'' at the top of the column of
section numbers.
(6) Section 10507 is amended--
(A) by striking out ``section 124402(b)'' and inserting in
lieu thereof ``section 12402(b)''; and
(B) by striking out ``Air Forces'' and inserting in lieu
thereof ``Air Force''.
(7)(A) Section 10508 is repealed.
(B) The table of sections at the beginning of chapter 1011
is amended by striking out the item relating to section
10508.
(8) Section 10542 is amended by striking out subsection
(d).
(9) Section 12004(a) is amended by striking out ``active-
status'' and inserting in lieu thereof ``active status''.
(10) Section 12012 is amended by inserting ``the'' in the
section heading before the penultimate word.
(11)(A) The heading for section 12201 is amended to read as
follows:

``Sec. 12201. Reserve officers: qualifications for
appointment''.

(B) The item relating to that section in the table of
sections at the beginning of chapter 1205 is amended to read
as follows:

``12201. Reserve officers: qualifications for appointment.''.

(12)(A) The heading for section 12209 is amended to read as
follows:

``Sec. 12209. Officer candidates: enlisted Reserves''.

(B) The heading for section 12210 is amended to read as
follows:

``Sec. 12210. Attending Physician to the Congress: reserve
grade while so serving''.

(13)(A) The headings for sections 12211, 12212, 12213, and
12214 are amended by inserting ``the'' after ``National Guard
of''
(B) The table of sections at the beginning of chapter 1205
is amended by inserting ``the'' in the items relating to
sections 12211, 12212, 12213, and 12214 after ``National
Guard of''.
(14) Section 12213(a) is amended by striking out ``section
593'' and inserting in lieu thereof ``section 12203''.
(15) The table of sections at the beginning of chapter 1207
is amended by striking out ``promotions'' in the item
relating to section 12243 and inserting in lieu thereof
``promotion''.
(16) The table of sections at the beginning of chapter 1209
is amended--
(A) in the item relating to section 12304, by striking out
the colon and inserting in lieu thereof a semicolon; and
(B) in the item relating to section 12308, by striking out
the second, third, and fourth words.
(17) Section 12307 is amended by striking out ``Ready
Reserve'' in the second sentence and inserting in lieu
thereof ``Retired Reserve''.
(18)(A) The table of sections at the beginning of chapter
1211 is amended by inserting ``the'' in the items relating to
sections 12401, 12402, 12403, and 12404 after ``Army and Air
National Guard of''.
(B) The headings for sections 12402, 12403, and 12404 are
amended by inserting ``the'' after ``Army and Air National
Guard of''
(19) Section 12407(b) is amended--
(A) by striking out ``of those jurisdictions'' and
inserting in lieu thereof ``State''; and
(B) by striking out ``jurisdictions'' and inserting in lieu
thereof ``States''.
(20) Section 12731(f) is amended by striking out ``the date
of the enactment of this subsection'' and inserting in lieu
thereof ``October 5, 1994,''.
(21) Section 12731a(c)(3) is amended by inserting a comma
after ``Defense Conversion''.
(22) Section 14003 is amended by inserting ``lists'' in the
section heading immediately before the colon.
(23) The table of sections at the beginning of chapter 1403
is amended by striking out ``selection board'' in the item
relating to section 14105 and inserting in lieu thereof
``promotion board''.
(24) The table of sections at the beginning of chapter 1405
is amended--
(A) in the item relating to section 14307, by striking out
``Numbers'' and inserting in lieu thereof ``Number'';
(B) in the item relating to section 14309, by striking out
the colon and inserting in lieu thereof a semicolon; and
(C) in the item relating to section 14314, by capitalizing
the initial letter of the antepenultimate word.
(25) Section 14315(a) is amended by striking out ``a
Reserve officer'' and inserting in lieu thereof ``a reserve
officer''.
(26) Section 14317(e) is amended--
(A) by inserting ``Officers Ordered to Active Duty in Time
of War or National Emergency.--'' after ``(e)''; and
(B) by striking out ``section 10213 or 644'' and inserting
in lieu thereof ``section 123 or 10213''.
(27) The table of sections at the beginning of chapter 1407
is amended--
(A) in the item relating to section 14506, by inserting
``reserve'' after ``Marine Corps and''; and
(B) in the item relating to section 14507, by inserting
``reserve'' after ``Removal from the''; and
(C) in the item relating to section 14509, by inserting
``in grades'' after ``reserve officers''.
(28) Section 14501(a) is amended by inserting ``Officers
Below the Grade of Colonel or Navy Captain.--'' after
``(a)''.
(29) The heading for section 14506 is amended by inserting
a comma after ``Air Force''.
(30) Section 14508 is amended by striking out ``this''
after ``from an active status under'' in subsections (c) and
(d).
(31) Section 14515 is amended by striking out ``inactive
status'' and inserting in lieu thereof ``inactive-status''.
(32) Section 14903(b) is amended by striking out
``chapter'' and inserting in lieu thereof ``title''.
(33) The table of sections at the beginning of chapter 1606
is amended in the item relating to section 16133 by striking
out ``limitations'' and inserting in lieu thereof
``limitation''.
(34) Section 16132(c) is amended by striking out
``section'' and inserting in lieu thereof ``sections''.
(35) Section 16135(b)(1)(A) is amended by striking out
``section 2131(a)'' and inserting in lieu thereof ``section
16131(a)''.
(36) Section 18236(b)(1) is amended by striking out
``section 2233(e)'' and inserting in lieu thereof ``section
18233(e)''.
(37) Section 18237 is amended--
(A) in subsection (a), by striking out ``section
2233(a)(1)'' and inserting in lieu thereof ``section
18233(a)(1)''; and
(B) in subsection (b), by striking out ``section 2233(a)''
and inserting in lieu thereof ``section 18233(a)''.
(c) Other Provisions of Title 10.--Effective as of December
1, 1994 (except as otherwise expressly provided), and as if
included as amendments made by the Reserve Officer Personnel
Management Act (title XVI of Public Law 103-360) as
originally enacted, title 10, United States Code, is amended
as follows:
(1) Section 101(d)(6)(B)(i) is amended by striking out
``section 175'' and inserting in lieu thereof ``section
10301''.
(2) Section 114(b) is amended by striking out ``chapter
133'' and inserting in lieu thereof ``chapter 1803''.
(3) Section 115(d) is amended--
(A) in paragraph (1), by striking out ``section 673'' and
inserting in lieu thereof ``section 12302'';
(B) in paragraph (2), by striking out ``section 673b'' and
inserting in lieu thereof ``section 12304''; and
(C) in paragraph (3), by striking out ``section 3500 or
8500'' and inserting in lieu thereof ``section 12406''.
(4) Section 123(a) is amended--
(A) by striking out ``281, 592, 1002, 1005, 1006, 1007,
1374, 3217, 3218, 3219, 3220, 3352(a) (last sentence),'',
``5414, 5457, 5458, 5506,'', and ``8217, 8218, 8219,''; and
(B) by striking out ``and 8855'' and inserting in lieu
thereof ``8855, 10214, 12003, 12004, 12005, 12007, 12202,
12213(a) (second sentence), 12642, 12645, 12646, 12647,
12771, 12772, and 12773''.
(5) Section 582(1) is amended by striking out ``section
672(d)'' in subparagraph (B) and ``section 673b'' in
subparagraph (D) and inserting in lieu thereof ``section
12301(d)'' and ``section 12304'', respectively.
(6) Section 641(1)(B) is amended by striking out ``10501''
and inserting in lieu thereof ``10502, 10505, 10506(a),
10506(b), 10507''.
(7) The table of sections at the beginning of chapter 39 is
amended by striking out the items relating to sections 687
and 690.
(8) Sections 1053(a)(1) and 1064 are amended by striking
out ``chapter 67'' and inserting in lieu thereof ``chapter
1223''.
(9) Section 1063(a)(1) is amended by striking out ``section
1332(a)(2)'' and inserting in lieu thereof ``section
12732(a)(2)''.
(10) Section 1074b(b)(2) is amended by striking out
``section 673c'' and inserting in lieu thereof ``section
12305''.
(11) Section 1076(b)(2)(A) is amended by striking out
``before the effective date of the Reserve Officer Personnel
Management Act'' and inserting in lieu thereof ``before
December 1, 1994''.
(12) Section 1176(b) is amended by striking out ``section
1332'' in the matter preceding paragraph (1) and in
paragraphs (1) and (2) and inserting in lieu thereof
``section 12732''.
(13) Section 1208(b) is amended by striking out ``section
1333'' and inserting in lieu thereof ``section 12733''.
(14) Section 1209 is amended by striking out ``section
1332'', ``section 1335'', and ``chapter 71'' and inserting in
lieu thereof ``section 12732'', ``section 12735'', and
``section 12739'', respectively.
(15) Section 1407 is amended--
(A) in subsection (c)(1) and (d)(1), by striking out
``section 1331'' and inserting in lieu thereof ``section
12731''; and
(B) in the heading for paragraph (1) of subsection (d), by
striking out ``chapter 67'' and inserting in lieu thereof
``chapter 1223''.

[[Page H443]]

(16) Section 1408(a)(5) is amended by striking out
``section 1331'' and inserting in lieu thereof ``section
12731''.
(17) Section 1431(a)(1) is amended by striking out
``section 1376(a)'' and inserting in lieu thereof ``section
12774(a)''.
(18) Section 1463(a)(2) is amended by striking out
``chapter 67'' and inserting in lieu thereof ``chapter
1223''.
(19) Section 1482(f)(2) is amended by inserting ``section''
before ``12731 of this title''.
(20) The table of sections at the beginning of chapter 533
is amended by striking out the item relating to section 5454.
(21) Section 2006(b)(1) is amended by striking out
``chapter 106 of this title'' and inserting in lieu thereof
``chapter 1606 of this title''.
(22) Section 2121(c) is amended by striking out ``section
3353, 5600, or 8353'' and inserting in lieu thereof ``section
12207'', effective on the effective date specified in section
1691(b)(1) of Public Law 103-337.
(23) Section 2130a(b)(3) is amended by striking out
``section 591'' and inserting in lieu thereof ``section
12201''.
(24) The table of sections at the beginning of chapter 337
is amended by striking out the items relating to section 3351
and 3352.
(25) Sections 3850, 6389(c), 6391(c), and 8850 are amended
by striking out ``section 1332'' and inserting in lieu
thereof ``section 12732''.
(26) Section 5600 is repealed, effective on the effective
date specified in section 1691(b)(1) of Public Law 103-337.
(27) Section 5892 is amended by striking out ``section 5457
or section 5458'' and inserting in lieu thereof ``section
12004 or section 12005''.
(28) Section 6410(a) is amended by striking out ``section
1005'' and inserting in lieu thereof ``section 12645''.
(29) The table of sections at the beginning of chapter 837
is amended by striking out the items relating to section 8351
and 8352.
(30) Section 8360(b) is amended by striking out ``section
1002'' and inserting in lieu thereof ``section 12642''.
(31) Section 8380 is amended by striking out ``section
524'' in subsections (a) and (b) and inserting in lieu
thereof ``section 12011''.
(32) Sections 8819(a), 8846(a), and 8846(b) are amended by
striking out ``sections 1005 and 1006'' and inserting in lieu
thereof ``sections 12645 and 12646''.
(33) Section 8819 is amended by striking out ``section
1005'' and ``section 1006'' and inserting in lieu thereof
``section 12645'' and ``section 12646'', respectively.
(d) Cross References in Other Defense Laws.--
(1) Section 337(b) of the National Defense Authorization
Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2717)
is amended by inserting before the period at the end the
following: ``or who after November 30, 1994, transferred to
the Retired Reserve under section 10154(2) of title 10,
United States Code, without having completed the years of
service required under section 12731(a)(2) of such title for
eligibility for retired pay under chapter 1223 of such
title''.
(2) Section 525 of the National Defense Authorization Act
for Fiscal Years 1992 and 1993 (Public Law 102-190, 105 Stat.
1363) is amended by striking out ``section 690'' and
inserting in lieu thereof ``section 12321''.
(3) Subtitle B of title XLIV of the National Defense
Authorization Act for Fiscal Year 1993 (Public Law 102-484;
10 U.S.C. 12681 note) is amended--
(A) in section 4415, by striking out ``section 1331a'' and
inserting in lieu thereof ``section 12731a'';
(B) in subsection 4416--
(i) in subsection (a), by striking out ``section 1331'' and
inserting in lieu thereof ``section 12731'';
(ii) in subsection (b)--

(I) by inserting ``or section 12732'' in paragraph (1)
after ``under that section''; and
(II) by inserting ``or 12731(a)'' in paragraph (2) after
``section 1331(a)'';

(iii) in subsection (e)(2), by striking out ``section
1332'' and inserting in lieu thereof ``section 12732''; and
(iv) in subsection (g), by striking out ``section 1331a''
and inserting in lieu thereof ``section 12731a''; and
(C) in section 4418--
(i) in subsection (a), by striking out ``section 1332'' and
inserting in lieu thereof ``section 12732''; and
(ii) in subsection (b)(1)(A), by striking out ``section
1333'' and inserting in lieu thereof ``section 12733''.
(4) Title 37, United States Code, is amended--
(A) in section 302f(b), by striking out ``section 673c of
title 10'' in paragraphs (2) and (3)(A) and inserting in lieu
thereof ``section 12305 of title 10''; and
(B) in section 433(a), by striking out ``section 687 of
title 10'' and inserting in lieu thereof ``section 12319 of
title 10''.
(e) Cross References in Other Laws.--
(1) Title 14, United States Code, is amended--
(A) in section 705(f), by striking out ``600 of title 10''
and inserting in lieu thereof ``12209 of title 10''; and
(B) in section 741(c), by striking out ``section 1006 of
title 10'' and inserting in lieu thereof ``section 12646 of
title 10''.
(2) Title 38, United States Code, is amended--
(A) in section 3011(d)(3), by striking out ``section 672,
673, 673b, 674, or 675 of title 10'' and inserting in lieu
thereof ``section 12301, 12302, 12304, 12306, or 12307 of
title 10'';
(B) in sections 3012(b)(1)(B)(iii) and 3701(b)(5)(B), by
striking out ``section 268(b) of title 10'' and inserting in
lieu thereof ``section 10143(a) of title 10'';
(C) in section 3501(a)(3)(C), by striking out ``section
511(d) of title 10'' and inserting in lieu thereof ``section
12103(d) of title 10''; and
(D) in section 4211(4)(C), by striking out ``section
672(a), (d), or (g), 673, or 673b of title 10'' and inserting
in lieu thereof ``section 12301(a), (d), or (g), 12302, or
12304 of title 10''.
(3) Section 702(a)(1) of the Soldiers' and Sailors' Civil
Relief Act of 1940 (50 U.S.C. App. 592(a)(1)) is amended--
(A) by striking out ``section 672 (a) or (g), 673, 673b,
674, 675, or 688 of title 10'' and inserting in lieu thereof
``section 688, 12301(a), 12301(g), 12302, 12304, 12306, or
12307 of title 10''; and
(B) by striking out ``section 672(d) of such title'' and
inserting in lieu thereof ``section 12301(d) of such title''.
(4) Section 463A of the Higher Education Act of 1965 (20
U.S.C. 1087cc-1) is amended in subsection (a)(10) by striking
out ``(10 U.S.C. 2172)'' and inserting in lieu thereof ``(10
U.S.C. 16302)''.
(5) Section 179 of the National and Community Service Act
of 1990 (42 U.S.C. 12639) is amended in subsection (a)(2)(C)
by striking out ``section 216(a) of title 5'' and inserting
in lieu thereof ``section 10101 of title 10''.
(f) Effective Dates.--
(1) Section 1636 of the Reserve Officer Personnel
Management Act shall take effect on the date of the enactment
of this Act.
(2) The amendments made by sections 1672(a), 1673(a) (with
respect to chapters 541 and 549), 1673(b)(2), 1673(b)(4),
1674(a), and 1674(b)(7) shall take effect on the effective
date specified in section 1691(b)(1) of the Reserve Officer
Personnel Management Act (notwithstanding section 1691(a) of
such Act).
(3) The amendments made by this section shall take effect
as if included in the Reserve Officer Personnel Management
Act as enacted on October 5, 1994.

SEC. 1502. AMENDMENTS TO REFLECT NAME CHANGE OF COMMITTEE ON
ARMED SERVICES OF THE HOUSE OF REPRESENTATIVES.

(a) Title 10, United States Code.--Title 10, United States
Code, is amended as follows:
(1) Sections 503(b)(5), 520a(d), 526(d)(1), 619a(h)(2),
806a(b), 838(b)(7), 946(c)(1)(A), 1098(b)(2), 2313(b)(4),
2361(c)(1), 2371(h), 2391(c), 2430(b), 2432(b)(3)(B),
2432(c)(2), 2432(h)(1), 2667(d)(3), 2672a(b), 2687(b)(1),
4342(g), 7307(b)(1)(A), and 9342(g) are amended by
striking out ``Committees on Armed Services of the Senate
and House of Representatives'' and inserting in lieu
thereof ``Committee on Armed Services of the Senate and
the Committee on National Security of the House of
Representatives''.
(2) Sections 178(c)(1)(A), 942(e)(5), 2350f(c), 7426(e),
7431(a), 7431(b)(1), 7431(c), 7438(b), 12302(b), 18235(a),
and 18236(a) are amended by striking out ``Committees on
Armed Services of the Senate and the House of
Representatives'' and inserting in lieu thereof ``Committee
on Armed Services of the Senate and the Committee on National
Security of the House of Representatives''.
(3) Section 113(j)(1) is amended by striking out
``Committees on Armed Services and Committees on
Appropriations of the Senate and'' and inserting in lieu
thereof ``Committee on Armed Services and the Committee on
Appropriations of the Senate and the Committee on National
Security and the Committee on Appropriations of the''.
(4) Section 119(g) is amended by striking out paragraphs
(1) and (2) and inserting in lieu thereof the following:
``(1) the Committee on Armed Services and the Committee on
Appropriations, and the Defense Subcommittee of the Committee
on Appropriations, of the Senate; and
``(2) the Committee on National Security and the Committee
on Appropriations, and the National Security Subcommittee of
the Committee on Appropriations, of the House of
Representatives.''.
(5) Section 127(c) is amended by striking out ``Committees
on Armed Services and Appropriations of the Senate and'' and
inserting in lieu thereof ``Committee on Armed Services and
the Committee on Appropriations of the Senate and the
Committee on National Security and the Committee on
Appropriations of''.
(6) Section 135(e) is amended--
(A) by inserting ``(1)'' after ``(e)'';
(B) by striking out ``the Committees on Armed Services and
the Committees on Appropriations of the Senate and House of
Representatives are each'' and inserting in lieu thereof
``each congressional committee specified in paragraph (2)
is''; and
(C) by adding at the end the following:
``(2) The committees referred to in paragraph (1) are--
``(A) the Committee on Armed Services and the Committee on
Appropriations of the Senate; and
``(B) the Committee on National Security and the Committee
on Appropriations of the House of Representatives.''.
(7) Section 179(e) is amended by striking out ``to the
Committees on Armed Services and Appropriations of the Senate
and'' and inserting in lieu thereof ``to the Committee on
Armed Services and the Committee on Appropriations of the
Senate and the Committee on National Security and the
Committee on Appropriations of the''.
(8) Sections 401(d) and 402(d) are amended by striking out
``submit to the'' and all that

[[Page H444]]
follows through ``Foreign Affairs'' and inserting in lieu thereof
``submit to the Committee on Armed Services and the Committee
on Foreign Relations of the Senate and the Committee on
National Security and the Committee on International
Relations''.
(9) Section 2367(d)(2) is amended by striking out ``the
Committees on Armed Services and the Committees on
Appropriations of the Senate and'' and inserting in lieu
thereof ``the Committee on Armed Services and the Committee
on Appropriations of the Senate and the Committee on National
Security and the Committee on Appropriations of the''.
(10) Sections 2306b(g), 2801(c)(4), and 18233a(a)(1) are
amended by striking out ``the Committees on Armed Services
and on Appropriations of the Senate and'' and inserting in
lieu thereof ``the Committee on Armed Services and the
Committee on Appropriations of the Senate and the Committee
on National Security and the Committee on Appropriations of
the''.
(11) Section 1599(e)(2) is amended--
(A) in subparagraph (A), by striking out ``The Committees
on Armed Services and Appropriations'' and inserting in lieu
thereof ``The Committee on National Security, the Committee
on Appropriations,''; and
(B) in subparagraph (B), by striking out ``The Committees
on Armed Services and Appropriations'' and inserting in lieu
thereof ``The Committee on Armed Services, the Committee on
Appropriations,''.
(12) Sections 4355(a)(3), 6968(a)(3), and 9355(a)(3) are
amended by striking out ``Armed Services'' and inserting in
lieu thereof ``National Security''.
(13) Section 1060(d) is amended by striking out ``Committee
on Armed Services and the Committee on Foreign Affairs'' and
inserting in lieu thereof ``Committee on National Security
and the Committee on International Relations''.
(14) Section 2215 is amended--
(A) by inserting ``(a) Certification Required.--'' at the
beginning of the text of the section;
(B) by striking out ``to the Committees'' and all that
follows through ``House of Representatives'' and inserting in
lieu thereof ``to the congressional committees specified in
subsection (b)''; and
(C) by adding at the end the following:
``(b) Congressional Committees.--The committees referred to
in subsection (a) are--
``(1) the Committee on Armed Services and the Committee on
Appropriations of the Senate; and
``(2) the Committee on National Security and the Committee
on Appropriations of the House of Representatives.''.
(15) Section 2218 is amended--
(A) in subsection (j), by striking out ``the Committees on
Armed Services and on Appropriations of the Senate and the
House of Representatives'' and inserting in lieu thereof
``the congressional defense committees''; and
(B) by adding at the end of subsection (k) the following
new paragraph:
``(4) The term `congressional defense committees' means--
``(A) the Committee on Armed Services and the Committee on
Appropriations of the Senate; and
``(B) the Committee on National Security and the Committee
on Appropriations of the House of Representatives.''.
(16) Section 2342(b) is amended--
(A) in the matter preceding paragraph (1), by striking out
``section--'' and inserting in lieu thereof ``section
unless--'';
(B) in paragraph (1), by striking out ``unless''; and
(C) in paragraph (2), by striking out ``notifies the'' and
all that follows through ``House of Representatives'' and
inserting in lieu thereof ``the Secretary submits to the
Committee on Armed Services and the Committee on Foreign
Relations of the Senate and the Committee on National
Security and the Committee on International Relations of the
House of Representatives notice of the intended
designation''.
(17) Section 2350a(f)(2) is amended by striking out
``submit to the Committees'' and all that follows through
``House of Representatives'' and inserting in lieu thereof
``submit to the Committee on Armed Services and the Committee
on Foreign Relations of the Senate and the Committee on
National Security and the Committee on International
Relations of the House of Representatives''.
(18) Section 2366 is amended--
(A) in subsection (d), by striking out ``the Committees on
Armed Services and on Appropriations of the Senate and House
of Representatives'' and inserting in lieu thereof ``the
congressional defense committees''; and
(B) by adding at the end of subsection (e) the following
new paragraph:
``(7) The term `congressional defense committees' means--
``(A) the Committee on Armed Services and the Committee on
Appropriations of the Senate; and
``(B) the Committee on National Security and the Committee
on Appropriations of the House of Representatives.''.
(19) Section 2399(h)(2) is amended by striking out
``means'' and all the follows and inserting in lieu thereof
the following: ``means--
``(A) the Committee on Armed Services and the Committee on
Appropriations of the Senate; and
``(B) the Committee on National Security and the Committee
on Appropriations of the House of Representatives.''.
(20) Section 2401(b)(1) is amended--
(A) in subparagraph (B), by striking out ``the Committees
on Armed Services and on Appropriations of the Senate and''
and inserting in lieu thereof ``the Committee on Armed
Services and the Committee on Appropriations of the Senate
and the Committee on National Security and the Committees on
Appropriations of the''; and
(B) in subparagraph (C), by striking out ``the Committees
on Armed Services and on Appropriations of the Senate and
House of Representatives'' and inserting in lieu thereof
``those committees''.
(21) Section 2403(e) is amended--
(A) by inserting ``(1)'' before ``Before making'';
(B) by striking out ``shall notify the Committees on Armed
Services and on Appropriations of the Senate and House of
Representatives'' and inserting in lieu thereof ``shall
submit to the congressional committees specified in paragraph
(2) notice''; and
(C) by adding at the end the following new paragraph:
``(2) The committees referred to in paragraph (1) are--
``(A) the Committee on Armed Services and the Committee on
Appropriations of the Senate; and
``(B) the Committee on National Security and the Committee
on Appropriations of the House of Representatives.''.
(22) Section 2515(d) is amended--
(A) by striking out ``Reporting'' and all that follows
through ``same time'' and inserting in lieu thereof ``Annual
Report.--(1) The Secretary of Defense shall submit to the
congressional committees specified in paragraph (2) an annual
report on the activities of the Office. The report shall be
submitted each year at the same time''; and
(B) by adding at the end the following new paragraph:
``(2) The committees referred to in paragraph (1) are--
``(A) the Committee on Armed Services and the Committee on
Appropriations of the Senate; and
``(B) the Committee on National Security and the Committee
on Appropriations of the House of Representatives.''.
(23) Section 2662 is amended--
(A) in subsection (a)--
(i) in the matter preceding paragraph (1), by striking out
``the Committees on Armed Services of the Senate and House of
Representatives'' and inserting in lieu thereof ``the
Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives''; and
(ii) in the matter following paragraph (6), by striking out
``to be submitted to the Committees on Armed Services of the
Senate and House of Representatives'';
(B) in subsection (b), by striking out ``shall report
annually to the Committees on Armed Services of the Senate
and the House of Representatives'' and inserting in lieu
thereof ``shall submit annually to the congressional
committees named in subsection (a) a report'';
(C) in subsection (e), by striking out ``the Committees on
Armed Services of the Senate and the House of
Representatives'' and inserting in lieu thereof ``the
congressional committees named in subsection (a)''; and
(D) in subsection (f), by striking out ``the Committees on
Armed Services of the Senate and the House of Representatives
shall'' and inserting in lieu thereof ``the congressional
committees named in subsection (a) shall''.
(24) Section 2674(a) is amended--
(A) in paragraph (2), by striking out ``Committees on Armed
Services of the Senate and the House of Representatives, the
Committee on Environment and Public Works of the Senate, and
the Committee on Public Works and Transportation of the House
of Representatives'' and inserting in lieu thereof
``congressional committees specified in paragraph (3)''; and
(B) by adding at the end the following new paragraph:
``(3) The committees referred to in paragraph (2) are--
``(A) the Committee on Armed Services and the Committee on
Environment and Public Works of the Senate; and
``(B) the Committee on National Security and the Committee
on Transportation and Infrastructure of the House of
Representatives.''.
(25) Section 2813(c) is amended by striking out
``Committees on Armed Services and the Committees on
Appropriations of the Senate and House of Representatives''
and inserting in lieu thereof ``appropriate committees of
Congress''.
(26) Sections 2825(b)(1) and 2832(b)(2) are amended by
striking out ``Committees on Armed Services and the
Committees on Appropriations of the Senate and of the House
of Representatives'' and inserting in lieu thereof
``appropriate committees of Congress''.
(27) Section 2865(e)(2) and 2866(c)(2) are amended by
striking out ``Committees on Armed Services and
Appropriations of the Senate and House of Representatives''
and inserting in lieu thereof ``appropriate committees of
Congress''.
(28)(A) Section 7434 of such title is amended to read as
follows:

``Sec. 7434. Annual report to congressional committees

``Not later than October 31 of each year, the Secretary
shall submit to the Committee on Armed Services of the Senate
and the Committee on National Security of the House of
Representatives a report on the

[[Page H445]]
production from the naval petroleum reserves during the preceding
calendar year.''.
(B) The item relating to such section in the table of
contents at the beginning of chapter 641 is amended to read
as follows:
``7434. Annual report to congressional committees.''.

(b) Title 37, United States Code.--Sections 301b(i)(2) and
406(i) of title 37, United States Code, are amended by
striking out ``Committees on Armed Services of the Senate and
House of Representatives'' and inserting in lieu thereof
``Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives''.
(c) Annual Defense Authorization Acts.--
(1) The National Defense Authorization Act for Fiscal Year
1994 (Public Law 103-160) is amended in sections 2922(b) and
2925(b) (10 U.S.C. 2687 note) by striking out ``Committees on
Armed Services of the Senate and House of Representatives''
and inserting in lieu thereof ``Committee on Armed Services
of the Senate and the Committee on National Security of the
House of Representatives''.
(2) The National Defense Authorization Act for Fiscal Year
1993 (Public Law 102-484) is amended--
(A) in section 326(a)(5) (10 U.S.C. 2301 note) and section
1304(a) (10 U.S.C. 113 note), by striking out ``Com- mittees
on Armed Services of the Senate and House of
Representatives'' and inserting in lieu thereof ``Committee
on Armed Services of the Senate and the Committee on National
Security of the House of Representatives''; and
(B) in section 1505(e)(2)(B) (22 U.S.C. 5859a), by striking
out ``the Committee on Armed Services, the Committee on
Appropriations, the Committee on Foreign Affairs, and the
Committee on Energy and Commerce'' and inserting in lieu
thereof ``the Committee on National Security, the Committee
on Appropriations, the Committee on International Relations,
and the Committee on Commerce''.
(3) Section 1097(a)(1) of the National Defense
Authorization Act for Fiscal Years 1992 and 1993 (Public Law
102-190; 22 U.S.C. 2751 note) is amended by striking out
``the Committees on Armed Services and Foreign Affairs'' and
inserting in lieu thereof ``the Committee on National
Security and the Committee on International Relations''.
(4) The National Defense Authorization Act for Fiscal Year
1991 (Public Law 101-510) is amended as follows:
(A) Section 402(a) and section 1208(b)(3) (10 U.S.C. 1701
note) are amended by striking out ``Committees on Armed
Services of the Senate and the House of Representatives'' and
inserting in lieu thereof ``Committee on Armed Services of
the Senate and the Committee on National Security of the
House of Representatives''.
(B) Section 1403 (50 U.S.C. 404b) is amended--
(i) in subsection (a), by striking out ``the Committees
on'' and all that follows through ``each year'' and inserting
in lieu thereof ``the congressional committees specified in
subsection (d) each year''; and
(ii) by adding at the end the following new subsection:
``(d) Specified Congressional Committees.--The
congressional committees referred to in subsection (a) are
the following:
``(1) The Committee on Armed Services, the Committee on
Appropriations, and the Select Committee on Intelligence of
the Senate.
``(2) The Committee on National Security, the Committee on
Appropriations, and the Permanent Select Committee on
Intelligence of the House of Representatives.''.
(C) Section 1457 (50 U.S.C. 404c) is amended--
(i) in subsection (a), by striking out ``shall submit to
the'' and all that follows through ``each year'' and
inserting in lieu thereof ``shall submit to the congressional
committees specified in subsection (d) each year'';
(ii) in subsection (c)--

(I) by striking out ``(1) Except as provided in paragraph
(2), the President'' and inserting in lieu thereof ``The
President''; and
(II) by striking out paragraph (2); and

(iii) by adding at the end the following new subsection:
``(d) Specified Congressional Committees.--The
congressional committees referred to in subsection (a) are
the following:
``(1) The Committee on Armed Services and the Committee on
Foreign Relations of the Senate.
``(2) The Committee on National Security and the Committee
on International Relations of the House of
Representatives.''.
(D) Section 2921 (10 U.S.C. 2687 note) is amended--
(i) in subsection (e)(3)(A), by striking out ``the
Committee on Armed Services, the Committee on Appropriations,
and the Defense Subcommittees'' and inserting in lieu thereof
``the Committee on National Security, the Committee on
Appropriations, and the National Security Subcommittee''; and
(ii) in subsection (g)(2), by striking out ``the Committee
on Armed Services of the Senate and House of
Representatives'' and inserting in lieu thereof ``the
Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives''.
(5) Section 613(h)(1) of the National Defense Authorization
Act, Fiscal Year 1989 (Public Law 100-456; 37 U.S.C. 302
note), is amended by striking out ``the Committees on Armed
Services of the Senate and the House of Representatives'' and
inserting in lieu thereof ``the Committee on Armed Services
of the Senate and the Committee on National Security of the
House of Representatives''.
(6) Section 1412 of the Department of Defense Authorization
Act, 1986 (Public Law 99-145; 50 U.S.C. 1521), is amended in
subsections (b)(4) and (k)(2), by striking out ``Committees
on Armed Services of the Senate and House of
Representatives'' and inserting in lieu thereof ``Committee
on Armed Services of the Senate and the Committee on National
Security of the House of Representatives''.
(7) Section 1002(d) of the Department of Defense
Authorization Act, 1985 (Public Law 98-525; 22 U.S.C. 1928
note), is amended by striking out ``the Committees on Armed
Services of the Senate and the House of Representatives'' and
inserting in lieu thereof ``the Committee on Armed Services
of the Senate, the Committee on National Security of the
House of Representatives''.
(8) Section 1252 of the Department of Defense Authorization
Act, 1984 (42 U.S.C. 248d), is amended--
(A) in subsection (d), by striking out ``Committees on
Appropriations and on Armed Services of the Senate and the
House of Representatives'' and inserting in lieu thereof
``Committee on Appropriations and the Committee on Armed
Services of the Senate and the Committee on Appropriations
and the Committee on National Security of the House of
Representatives''; and
(B) in subsection (e), by striking out ``Committees on
Appropriations and on Armed Services of the Senate and the
House of Representatives'' and inserting in lieu thereof
``congressional committees specified in subsection (d)''.
(d) Base Closure Law.--The Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note) is amended as follows:
(1) Sections 2902(e)(2)(B)(ii) and 2908(b) are amended by
striking out ``Armed Services'' the first place it appears
and inserting in lieu thereof ``National Security''.
(2) Section 2910(2) is amended by striking out ``the
Committees on Armed Services and the Committees on
Appropriations of the Senate and of the House of
Representatives'' and inserting in lieu thereof ``the
Committee on Armed Services and the Committee on
Appropriations of the Senate and the Committee on National
Security and the Committee on Appropriations of the House of
Representatives''.
(e) National Defense Stockpile.--The Strategic and Critical
Materials Stock Piling Act is amended--
(1) in section 6(d) (50 U.S.C. 98e(d))--
(A) in paragraph (1), by striking out ``Committees on Armed
Services of the Senate and House of Representatives'' and
inserting in lieu thereof ``Committee on Armed Services of
the Senate and the Committee on National Security of the
House of Representatives''; and
(B) in paragraph (2), by striking out ``the Committees on
Armed Services of the Senate and House of Representatives''
and inserting in lieu thereof ``such congressional
committees''; and
(2) in section 7(b) (50 U.S.C. 98f(b)), by striking out
``Committees on Armed Services of the Senate and House of
Representatives'' and inserting in lieu thereof ``Committee
on Armed Services of the Senate and the Committee on National
Security of the House of Representatives''.
(f) Other Defense-Related Provisions.--
(1) Section 8125(g)(2) of the Department of Defense
Appropriations Act, 1989 (Public Law 100-463; 10 U.S.C. 113
note), is amended by striking out ``Committees on
Appropriations and Armed Services of the Senate and House of
Representatives'' and inserting in lieu thereof ``Committee
on Appropriations and the Committee on Armed Services of the
Senate and the Committee on Appropriations and the Committee
on National Security of the House of Representatives''.
(2) Section 9047A of the Department of Defense
Appropriations Act, 1993 (Public Law 102-396; 10 U.S.C. 2687
note), is amended by striking out ``the Committees on
Appropriations and Armed Services of the House of
Representatives and the Senate'' and inserting in lieu
thereof ``the Committee on Appropriations and the Committee
on Armed Services of the Senate and the Committee on
Appropriations and the Committee on National Security of the
House of Representatives''.
(3) Section 3059(c)(1) of the Defense Drug Interdiction
Assistance Act (subtitle A of title III of Public Law 99-570;
10 U.S.C. 9441 note) is amended by striking out ``Committees
on Appropriations and on Armed Services of the Senate and the
House of Representatives'' and inserting in lieu thereof
``Committee on Armed Services and the Committee on
Appropriations of the Senate and the Committee on National
Security and the Committee on Appropriations of the House of
Representatives''.
(4) Section 7606(b) of the Anti-Drug Abuse Act of 1988
(Public Law 100-690; 10 U.S.C. 9441 note) is amended by
striking out ``Committees on Appropriations and the Committee
on Armed Services of the Senate and the House of
Representatives'' and inserting in lieu thereof ``Committee
on Armed Services and the Committee on Appropriations of the
Senate and the Committee on National Security and the
Committee on Appropriations of the House of
Representatives''.
(5) Section 104(d)(5) of the National Security Act of 1947
(50 U.S.C. 403-4(d)(5)) is amended by striking out
``Committees on

[[Page H446]]
Armed Services of the Senate and House of Representatives'' and
inserting in lieu thereof ``Committee on Armed Services of
the Senate and the Committee on National Security of the
House of Representatives''.
(6) Section 8 of the Inspector General Act of 1978 (5
U.S.C. App.) is amended--
(A) in subsection (b)(3), by striking out ``Committees on
Armed Services and Government Operations'' and inserting in
lieu thereof ``Committee on National Security and the
Committee on Government Reform and Oversight'';
(B) in subsection (b)(4), by striking out ``Committees on
Armed Services and Governmental Affairs of the Senate and the
Committees on Armed Services and Government Operations of the
House of Representatives'' and inserting in lieu thereof
``congressional committees specified in paragraph (3)'';
(C) in subsection (f)(1), by striking out ``Committees on
Armed Services and Government Operations'' and inserting in
lieu thereof ``Committee on National Security and the
Committee on Government Reform and Oversight''; and
(D) in subsection (f)(2), by striking out ``Committees on
Armed Services and Governmental Affairs of the Senate and the
Committees on Armed Services and Government Operations of the
House of Representatives'' and inserting in lieu thereof
``congressional committees specified in paragraph (1)''.
(7) Section 204(h)(3) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 485(h)(3)) is
amended by striking out ``Committees on Armed Services of the
Senate and of the House of Representatives'' and inserting in
lieu thereof ``Committee on Armed Services of the Senate and
the Committee on National Security of the House of
Representatives''.

SEC. 1503. MISCELLANEOUS AMENDMENTS TO TITLE 10, UNITED
STATES CODE.

(a) Subtitle A.--Subtitle A of title 10, United States
Code, is amended as follows:
(1) Section 113(i)(2)(B) is amended by striking out ``the
five years covered'' and all that follows through ``section
114(g)'' and inserting in lieu thereof ``the period covered
by the future-years defense program submitted to Congress
during that year pursuant to section 221''.
(2) Section 136(c) is amended by striking out
``Comptroller'' and inserting in lieu thereof ``Under
Secretary of Defense (Comptroller)''.
(3) Section 526 is amended--
(A) in subsection (a), by striking out paragraphs (1), (2),
and (3) and inserting in lieu thereof the following:
``(1) For the Army, 302.
``(2) For the Navy, 216.
``(3) For the Air Force, 279.'';
(B) by striking out subsection (b);
(C) by redesignating subsections (c), (d), and (e) as
subsections (b), (c), and (d);
(D) in subsection (b), as so redesignated, by striking out
``that are applicable on and after October 1, 1995''; and
(E) in paragraph (2)(B) of subsection (c), as redesignated
by subparagraph (C), is amended--
(i) by striking out ``the'' after ``in the'';
(ii) by inserting ``to'' after ``reserve component, or'';
and
(iii) by inserting ``than'' after ``in a grade other''.
(4) Section 528(a) is amended by striking out ``after
September 30, 1995,''.
(5) Section 573(a)(2) is amended by striking out ``active
duty list'' and inserting in lieu thereof ``active-duty
list''.
(6) Section 661(d)(2) is amended--
(A) in subparagraph (B), by striking out ``Until January 1,
1994'' and all that follows through ``each position so
designated'' and inserting in lieu thereof ``Each position
designated by the Secretary under subparagraph (A)'';
(B) in subparagraph (C), by striking out ``the second
sentence of''; and
(C) by striking out subparagraph (D).
(7) Section 706(c)(1) is amended by striking out ``section
4301 of title 38'' and inserting in lieu thereof ``chapter 43
of title 38''.
(8) Section 1059 is amended by striking out ``subsection
(j)'' in subsections (c)(2) and (g)(3) and inserting in lieu
thereof ``subsection (k)''.
(9) Section 1060a(f)(2)(B) is amended by striking out ``(as
defined in section 101(a)(22) of the Immigration and
Nationality Act (8 U.S.C. 1101(a)(22)))'' and inserting
in lieu thereof ``, as determined in accordance with the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.)''.
(10) Section 1151 is amended--
(A) in subsection (b), by striking out ``(20 U.S.C. 2701 et
seq.)'' in paragraphs (2)(A) and (3)(A) and inserting in lieu
thereof ``(20 U.S.C. 6301 et seq.)''; and
(B) in subsection (e)(1)(B), by striking out ``not later
than one year after the date of the enactment of the National
Defense Authorization Act for Fiscal Year 1995'' and
inserting in lieu thereof ``not later than October 5, 1995''.
(11) Section 1152(g)(2) is amended by striking out ``not
later than 180 days after the date of the enactment of the
National Defense Authorization Act for Fiscal Year 1995'' and
inserting in lieu thereof ``not later than April 3, 1994,''.
(12) Section 1177(b)(2) is amended by striking out
``provison of law'' and inserting in lieu thereof ``provision
of law''.
(13) The heading for chapter 67 is amended by striking out
``NONREGULAR'' and inserting in lieu thereof ``NON-REGULAR''.
(14) Section 1598(a)(2)(A) is amended by striking out
``2701'' and inserting in lieu thereof ``6301''.
(15) Section 1745(a) is amended by striking out ``section
4107(d)'' both places it appears and inserting in lieu
thereof ``section 4107(b)''.
(16) Section 1746(a) is amended--
(A) by striking out ``(1)'' before ``The Secretary of
Defense''; and
(B) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively.
(17) Section 2006(b)(2)(B)(ii) is amended by striking out
``section 1412 of such title'' and inserting in lieu thereof
``section 3012 of such title''.
(18) Section 2011(a) is amended by striking out ``to'' and
inserting in lieu thereof ``To''.
(19) Section 2194(e) is amended by striking out ``(20
U.S.C. 2891(12))'' and inserting in lieu thereof ``(20 U.S.C.
8801)''.
(20) Sections 2217(b) and 2220(a)(2) are amended by
striking out ``Comptroller of the Department of Defense'' and
inserting in lieu thereof ``Under Secretary of Defense
(Comptroller)''.
(21) Section 2401(c)(2) is amended by striking out
``pursuant to'' and all that follows through ``September 24,
1983,''.
(22) Section 2410f(b) is amended by striking out ``For
purposes of'' and inserting in lieu thereof ``In''.
(23) Section 2410j(a)(2)(A) is amended by striking out
``2701'' and inserting in lieu thereof ``6301''.
(24) Section 2457(e) is amended by striking out ``title III
of the Act of March 3, 1933 (41 U.S.C. 10a),'' and inserting
in lieu thereof ``the Buy American Act (41 U.S.C. 10a)''.
(25) Section 2465(b)(3) is amended by striking out ``under
contract'' and all that follows through the period and
inserting in lieu thereof ``under contract on September 24,
1983.''.
(26) Section 2471(b) is amended--
(A) in paragraph (2), by inserting ``by'' after ``as
determined''; and
(B) in paragraph (3), by inserting ``of'' after ``arising
out''.
(27) Section 2524(e)(4)(B) is amended by inserting a comma
before ``with respect to''.
(28) The heading of section 2525 is amended by capitalizing
the initial letter of the second, fourth, and fifth words.
(29) Chapter 152 is amended by striking out the table of
subchapters at the beginning and the headings for subchapters
I and II.
(30) Section 2534(c) is amended by capitalizing the initial
letter of the third and fourth words of the subsection
heading.
(31) The table of sections at the beginning of subchapter I
of chapter 169 is amended by adding a period at the end of
the item relating to section 2811.
(b) Other Subtitles.--Subtitles B, C, and D of title 10,
United States Code, are amended as follows:
(1) Sections 3022(a)(1), 5025(a)(1), and 8022(a)(1) are
amended by striking out ``Comptroller of the Department of
Defense'' and inserting in lieu thereof ``Under Secretary of
Defense (Comptroller)''.
(2) Section 6241 is amended by inserting ``or'' at the end
of paragraph (2).
(3) Section 6333(a) is amended by striking out the first
period after ``section 1405'' in formula C in the table under
the column designated ``Column 2''.
(4) The item relating to section 7428 in the table of
sections at the beginning of chapter 641 is amended by
striking out ``Agreement'' and inserting in lieu thereof
``Agreements''.
(5) The item relating to section 7577 in the table of
sections at the beginning of chapter 649 is amended by
striking out ``Officers'' and inserting in lieu thereof
``officers''.
(6) The center heading for part IV in the table of chapters
at the beginning of subtitle D is amended by inserting a
comma after ``SUPPLY''.

SEC. 1504. MISCELLANEOUS AMENDMENTS TO ANNUAL DEFENSE
AUTHORIZATION ACTS.

(a) Public Law 103-337.--Effective as of October 5, 1994,
and as if included therein as enacted, the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103-337)
is amended as follows:
(1) Section 322(1) (108 Stat. 2711) is amended by striking
out ``Service'' in both sets of quoted matter and inserting
in lieu thereof ``Services''.
(2) Section 531(g)(2) (108 Stat. 2758) is amended by
inserting ``item relating to section 1034 in the'' after
``The''.
(3) Section 541(c)(1) is amended--
(A) in subparagraph (B), by inserting a comma after ``chief
warrant officer''; and
(B) in the matter after subparagraph (C), by striking out
``this''.
(4) Section 721(f)(2) (108 Stat. 2806) is amended by
striking out ``revaluated'' and inserting in lieu thereof
``reevaluated''.
(5) Section 722(d)(2) (108 Stat. 2808) is amended by
striking out ``National Academy of Science'' and inserting in
lieu thereof ``National Academy of Sciences''.
(6) Section 904(d) (108 Stat. 2827) is amended by striking
out ``subsection (c)'' the first place it appears and
inserting in lieu thereof ``subsection (b)''.
(7) Section 1202 (108 Stat. 2882) is amended--
(A) by striking out ``(title XII of Public Law 103-60'' and
inserting in lieu thereof ``(title XII of Public Law 103-
160''; and
(B) in paragraph (2), by inserting ``in the first
sentence'' before ``and inserting in lieu thereof''.
(8) Section 1312(a)(2) (108 Stat. 2894) is amended by
striking out ``adding at the end''

[[Page H447]]
and inserting in lieu thereof ``inserting after the item relating to
section 123a''.
(9) Section 2813(c) (108 Stat. 3055) is amended by striking
out ``above paragraph (1)'' both places it appears and
inserting in lieu thereof ``preceding subparagraph (A)''.
(b) Public Law 103-160.--The National Defense Authorization
Act for Fiscal Year 1994 (Public Law 103-160) is amended in
section 1603(d) (22 U.S.C. 2751 note)--
(1) in the matter preceding paragraph (1), by striking out
the second comma after ``Not later than April 30 of each
year'';
(2) in paragraph (4), by striking out ``contributes'' and
inserting in lieu thereof ``contribute''; and
(3) in paragraph (5), by striking out ``is'' and inserting
in lieu thereof ``are''.
(c) Public Law 102-484.--The National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102-484) is amended as
follows:
(1) Section 326(a)(5) (106 Stat. 2370; 10 U.S.C. 2301 note)
is amended by inserting ``report'' after ``each''.
(2) Section 3163(1)(E) is amended by striking out
``paragraphs (1) through (4)'' and inserting in lieu thereof
``subparagraphs (A) through (D)''.
(3) Section 4403(a) (10 U.S.C. 1293 note) is amended by
striking out ``through 1995'' and inserting in lieu thereof
``through fiscal year 1999''.
(d) Public Law 102-190.--Section 1097(d) of the National
Defense Authorization Act for Fiscal Years 1992 and 1993
(Public Law 102-190; 105 Stat. 1490) is amended by striking
out ``the Federal Republic of Germany, France'' and inserting
in lieu thereof ``France, Germany''.

SEC. 1505. MISCELLANEOUS AMENDMENTS TO OTHER LAWS.

(a) Officer Personnel Act of 1947.--Section 437 of the
Officer Personnel Act of 1947 is repealed.
(b) Title 5, United States Code.--Title 5, United States
Code, is amended--
(1) in section 8171--
(A) in subsection (a), by striking out ``903(3)'' and
inserting in lieu thereof ``903(a)'';
(B) in subsection (c)(1), by inserting ``section'' before
``39(b)''; and
(C) in subsection (d), by striking out ``(33 U.S.C. 18 and
21, respectively)'' and inserting in lieu thereof ``(33
U.S.C. 918 and 921)'';
(2) in sections 8172 and 8173, by striking out ``(33 U.S.C.
2(2))'' and inserting in lieu thereof ``(33 U.S.C. 902(2))'';
and
(3) in section 8339(d)(7), by striking out ``Court of
Military Appeals'' and inserting in lieu thereof ``Court of
Appeals for the Armed Forces''.
(c) Public Law 90-485.--Effective as of August 13, 1968,
and as if included therein as originally enacted, section
1(6) of Public Law 90-485 (82 Stat. 753) is amended--
(1) by striking out the close quotation marks after the end
of clause (4) of the matter inserted by the amendment made by
that section; and
(2) by adding close quotation marks at the end.
(d) Title 37, United States Code.--Section 406(b)(1)(E) of
title 37, United States Code, is amended by striking out ``of
this paragraph''.
(e) Base Closure Laws.--(1) The Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note) is amended--
(A) in section 2905(b)(1)(C), by striking out ``of the
Administrator to grant approvals and make determinations
under section 13(g) of the Surplus Property Act of 1944 (50
U.S.C. App. 1622(g))'' and inserting in lieu thereof ``to
dispose of surplus property for public airports under
sections 47151 through 47153 of title 49, United States
Code'';
(B) in section 2906(d)(1), by striking out ``section
204(b)(4)(C)'' and inserting in lieu thereof ``section
204(b)(7)(C)''; and
(C) in section 2910--
(i) by designating the second paragraph (10), as added by
section 2(b) of the Base Closure Community Redevelopment and
Homeless Assistance Act of 1994 (Public Law 103-421; 108
Stat. 4352), as paragraph (11); and
(ii) in such paragraph, as so designated, by striking out
``section 501(h)(4) of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11411(h)(4))'' and inserting in
lieu thereof ``section 501(i)(4) of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11411(i)(4))''.
(2) Section 2921(d)(1) of the National Defense
Authorization Act for Fiscal Year 1991 (Public Law 101-510;
10 U.S.C. 2687 note) is amended by striking out ``section
204(b)(4)(C)'' and inserting in lieu thereof ``section
204(b)(7)(C)''.
(3) Section 204 of the Defense Authorization Amendments and
Base Closure and Realignment Act (Public Law 100-526; 10
U.S.C. 2687 note) is amended--
(A) in subsection (b)(1)(C), by striking out ``of the
Administrator to grant approvals and make determinations
under section 13(g) of the Surplus Property Act of 1944 (50
U.S.C. App. 1622(g))'' and inserting in lieu thereof ``to
dispose of surplus property for public airports under
sections 47151 through 47153 of title 49, United States
Code''; and
(B) in subsection (b)(7)(A)(i), by striking out ``paragraph
(3)'' and inserting in lieu thereof ``paragraphs (3) through
(6)''.
(f) Public Law 103-421.--Section 2(e)(5) of Public Law 103-
421 (108 Stat. 4354) is amended--
(1) by striking out ``(A)'' after ``(5)''; and
(2) by striking out ``clause'' in subparagraph (B)(iv) and
inserting in lieu thereof ``clauses''.
(g) Atomic Energy Act.--Section 123a. of the Atomic Energy
Act (42 U.S.C. 2153a.) is amended by striking out ``144b., or
144d.'' and inserting ``, 144b., or 144d.''.

SEC. 1506. COORDINATION WITH OTHER AMENDMENTS.

For purposes of applying amendments made by provisions of
this Act other than provisions of this title, this title
shall be treated as having been enacted immediately before
the other provisions of this Act.
TITLE XVI--CORPORATION FOR THE PROMOTION OF RIFLE PRACTICE AND FIREARMS
SAFETY

SEC. 1601. SHORT TITLE.

This title may be cited as the ``Corporation for the
Promotion of Rifle Practice and Firearms Safety Act''.
Subtitle A--Establishment and Operation of Corporation

SEC. 1611. ESTABLISHMENT OF THE CORPORATION.

(a) Establishment.--There is established a private,
nonprofit corporation to be known as the ``Corporation for
the Promotion of Rifle Practice and Firearms Safety'' (in
this title referred to as the ``Corporation'').
(b) Private, Nonprofit Status.--(1) The Corporation shall
not be considered to be a department, agency, or
instrumentality of the Federal Government. An officer or
employee of the Corporation shall not be considered to be an
officer or employee of the Federal Government.
(2) The Corporation shall be operated in a manner and for
purposes that qualify the Corporation for exemption from
taxation under section 501(a) of the Internal Revenue Code of
1986 as an organization described in section 501(c)(3) of
such Code.
(c) Board of Directors.--(1) The Corporation shall have a
Board of Directors consisting of not less than nine members.
(2) The Board of Directors may adopt bylaws, policies, and
procedures for the Corporation and may take any other action
that the Board of Directors considers necessary for the
management and operation of the Corporation.
(3) Each member of the Board of Directors shall serve for a
term of two years. Members of the Board of Directors are
eligible for reappointment.
(4) A vacancy on the Board of Directors shall be filled by
a majority vote of the remaining members of the Board.
(5) The Secretary of the Army shall appoint the initial
Board of Directors. Four of the members of the initial Board
of Directors, to be designated by the Secretary at the time
of appointment, shall (notwithstanding paragraph (3)) serve
for a term of one year.
(d) Director of Civilian Marksmanship.--(1) The Board of
Directors shall appoint an individual to serve as the
Director of Civilian Marksmanship.
(2) The Director shall be responsible for the performance
of the daily operations of the Corporation and the functions
described in section 1612.

SEC. 1612. CONDUCT OF CIVILIAN MARKSMANSHIP PROGRAM.

(a) Functions.--The Corporation shall have responsibility
for the overall supervision, oversight, and control of the
Civilian Marksmanship Program, pursuant to the transfer of
the program under subsection (d), including the performance
of the following:
(1) The instruction of citizens of the United States in
marksmanship.
(2) The promotion of practice and safety in the use of
firearms, including the conduct of matches and competitions
in the use of those firearms.
(3) The award to competitors of trophies, prizes, badges,
and other insignia.
(4) The provision of security and accountability for all
firearms, ammunition, and other equipment under the custody
and control of the Corporation.
(5) The issue, loan, or sale of firearms, ammunition,
supplies, and appliances under section 1614.
(6) The procurement of necessary supplies, appliances,
clerical services, other related services, and labor to carry
out the Civilian Marksmanship Program.
(b) Priority for Youth Activities.--In carrying out the
Civilian Marksmanship Program, the Corporation shall give
priority to activities that benefit firearms safety,
training, and competition for youth and that reach as many
youth participants as possible.
(c) Access to Surplus Property.--(1) The Corporation may
obtain surplus property and supplies from the Defense
Reutilization Marketing Service to carry out the Civilian
Marksmanship Program.
(2) Any transfer of property and supplies to the
Corporation under paragraph (1) shall be made without cost to
the Corporation.
(d) Transfer of Civilian Marksmanship Program to
Corporation.--(1) The Secretary of the Army shall provide for
the transition of the Civilian Marksmanship Program, as
defined in section 4308(e) of title 10, United States Code
(as such section was in effect on the day before the date of
the enactment of this Act), from conduct by the Department of
the Army to conduct by the Corporation. The transition shall
be completed not later than September 30, 1996.
(2) To carry out paragraph (1), the Secretary shall provide
such assistance and take such action as is necessary to
maintain the viability of the program and to maintain the
security of firearms, ammunition, and other property that are
transferred or reserved for transfer to the Corporation under
section 1615, 1616, or 1621.

[[Page H448]]

SEC. 1613. ELIGIBILITY FOR PARTICIPATION IN CIVILIAN
MARKSMANSHIP PROGRAM.

(a) Certification Requirement.--(1) Before a person may
participate in any activity sponsored or supported by the
Corporation, the person shall be required to certify by
affidavit the following:
(A) The person has not been convicted of any Federal or
State felony or violation of section 922 of title 18, United
States Code.
(B) The person is not a member of any organization that
advocates the violent overthrow of the United States
Government.
(2) The Director of Civilian Marksmanship may require any
person to attach to the person's affidavit a
certification from the appropriate State or Federal law
enforcement agency for purposes of paragraph (1)(A).
(b) Ineligibility Resulting From Certain Convictions.--A
person who has been convicted of a Federal or State felony or
a violation of section 922 of title 18, United States Code,
shall not be eligible to participate in any activity
sponsored or supported by the Corporation through the
Civilian Marksmanship Program.
(c) Authority To Limit Participation.--The Director of
Civilian Marksmanship may limit participation as necessary to
ensure--
(1) quality instruction in the use of firearms;
(2) the safety of participants; and
(3) the security of firearms, ammunition, and equipment.

SEC. 1614. ISSUANCE, LOAN, AND SALE OF FIREARMS AND
AMMUNITION BY THE CORPORATION.

(a) Issuance and Loan.--For purposes of training and
competition, the Corporation may issue or loan, with or
without charges to recover administrative costs, caliber .22
rimfire and caliber .30 surplus rifles, caliber .22 and .30
ammunition, air rifles, targets, and other supplies and
appliances necessary for activities related to the Civilian
Marksmanship Program to the following:
(1) Organizations affiliated with the Corporation that
provide training in the use of firearms to youth.
(2) The Boy Scouts of America.
(3) 4-H Clubs.
(4) Future Farmers of America.
(5) Other youth-oriented organizations.
(b) Sales.--(1) The Corporation may sell at fair market
value caliber .22 rimfire and caliber .30 surplus rifles,
caliber .22 and .30 ammunition, air rifles, repair parts, and
accouterments to organizations affiliated with the
Corporation that provide training in the use of firearms.
(2) Subject to subsection (e), the Corporation may sell at
fair market value caliber .22 rimfire and caliber .30 surplus
rifles, ammunition, targets, repair parts and accouterments,
and other supplies and appliances necessary for target
practice to citizens of the United States over 18 years of
age who are members of a gun club affiliated with the
Corporation. In addition to any other requirement, the
Corporation shall establish procedures to obtain a criminal
records check of the person with appropriate Federal and
State law enforcement agencies.
(c) Limitations on Sales.--(1) The Corporation may not
offer for sale any repair part designed to convert any
firearm to fire in a fully automatic mode.
(2) The Corporation may not sell rifles, ammunition, or any
other item available for sale to individuals under the
Civilian Marksmanship Program to a person who has been
convicted of a felony or a violation of section 922 of title
18, United States Code.
(d) Oversight and Accountability.--The Corporation shall be
responsible for ensuring adequate oversight and
accountability of all firearms issued or loaned under this
section. The Corporation shall prescribe procedures for the
security of issued or loaned firearms in accordance with
Federal, State, and local laws.
(e) Applicability of Other Law.--(1) Subject to paragraph
(2), sales under subsection (b)(2) are subject to applicable
Federal, State, and local laws.
(2) Paragraphs (1), (2), (3), and (5) of section 922(a) of
title 18, United States Code, do not apply to the shipment,
transportation, receipt, transfer, sale, issuance, loan, or
delivery by the Corporation of any item that the Corporation
is authorized to issue, loan, sell, or receive under this
title.

SEC. 1615. TRANSFER OF FIREARMS AND AMMUNITION FROM THE ARMY
TO THE CORPORATION.

(a) Transfers Required.--The Secretary of the Army shall,
in accordance with subsection (b), transfer to the
Corporation all firearms and ammunition that on the day
before the date of the enactment of this Act are under the
control of the Director of the Civilian Marksmanship Program,
including--
(1) all firearms on loan to affiliated clubs and State
associations;
(2) all firearms in the possession of the Civilian
Marksmanship Support Detachment; and
(3) all M-1 Garand and caliber .22 rimfire rifles stored at
Anniston Army Depot, Anniston, Alabama.
(b) Time for Transfer.--The Secretary shall transfer
firearms and ammunition under subsection (a) as and when
necessary to enable the Corporation--
(1) to issue or loan such items in accordance with section
1614(a); or
(2) to sell such items to purchasers in accordance with
section 1614(b).
(c) Parts.--The Secretary may make available to the
Corporation any part from a rifle designated to be
demilitarized in the inventory of the Department of the Army.
(d) Vesting of Title in Transferred Items.--Title to an
item transferred to the Corporation under this section shall
vest in the Corporation--
(1) upon the issuance of the item to a recipient eligible
under section 1614(a) to receive the item; or
(2) immediately before the Corporation delivers the item to
a purchaser of the item in accordance with a contract for a
sale of the item that is authorized under section 1614(b).
(e) Costs of Transfers.--Any transfer of firearms,
ammunition, or parts to the Corporation under this section
shall be made without cost to the Corporation, except that
the Corporation shall assume the cost of preparation and
transportation of firearms and ammunition transferred under
this section.

SEC. 1616. RESERVATION BY THE ARMY OF FIREARMS AND AMMUNITION
FOR THE CORPORATION.

(a) Reservation of Firearms and Ammunition.--The Secretary
of the Army shall reserve for the Corporation the following:
(1) All firearms referred to in section 1615(a).
(2) Ammunition for such firearms.
(3) All M-16 rifles used to support the small arms firing
school that are held by the Department of the Army on the
date of the enactment of this Act.
(4) Any parts from, and accessories and accouterments for,
surplus caliber .30 and caliber .22 rimfire rifles.
(b) Storage of Firearms and Ammunition.--Firearms stored at
Anniston Army Depot, Anniston, Alabama, before the date of
the enactment of this Act and used for the Civilian
Marksmanship Program shall remain at that facility, or
another storage facility designated by the Secretary of the
Army, without cost to the Corporation, until the firearms are
issued, loaned, or sold by, or otherwise transferred to, the
Corporation.
(c) Limitation on Demilitarization of M-1 Rifles.--After
the date of the enactment of this Act, the Secretary may not
demilitarize any M-1 Garand rifle in the inventory of the
Army unless that rifle is determined by the Defense Logistics
Agency to be unserviceable.
(d) Exception for Transfers to Federal and State Agencies
for Counterdrug Purposes.--The requirement specified in
subsection (a) does not supersede the authority provided in
section 1208 of the National Defense Authorization Act for
Fiscal Years 1990 and 1991 (Public Law 101-189; 10 U.S.C. 372
note).

SEC. 1617. ARMY LOGISTICAL SUPPORT FOR THE PROGRAM.

(a) Logistical Support.--The Secretary of the Army shall
provide logistical support to the Civilian Marksmanship
Program and for competitions and other activities conducted
by the Corporation. The Corporation shall reimburse the
Secretary for incremental direct costs incurred in providing
such support. Such reimbursements shall be credited to the
appropriations account of the Department of the Army that is
charged to provide such support.
(b) Reserve Component Personnel.--The Secretary shall
provide, without cost to the Corporation, for the use of
members of the National Guard and Army Reserve to support the
National Matches as part of the performance of annual
training pursuant to titles 10 and 32, United States Code.
(c) Use of Department of Defense Facilities for National
Matches.--The National Matches may continue to be held at
those Department of Defense facilities at which the National
Matches were held before the date of the enactment of this
Act.
(d) Regulations.--The Secretary shall prescribe regulations
to carry out this section.

SEC. 1618. GENERAL AUTHORITIES OF THE CORPORATION.

(a) Donations and Fees.--(1) The Corporation may solicit,
accept, hold, use, and dispose of donations of money,
property, and services received by gift, devise, bequest, or
otherwise.
(2) The Corporation may impose, collect, and retain such
fees as are reasonably necessary to cover the direct and
indirect costs of the Corporation to carry out the Civilian
Marksmanship Program.
(3) Amounts collected by the Corporation under the
authority of this subsection, including the proceeds from the
sale of firearms, ammunition, targets, and other supplies and
appliances, may be used only to support the Civilian
Marksmanship Program.
(b) Corporate Seal.--The Corporation may adopt, alter, and
use a corporate seal, which shall be judicially noticed.
(c) Contracts.--The Corporation may enter into contracts,
leases, agreements, or other transactions.
(d) Obligations and Expenditures.--The Corporation may
determine the character of, and necessity for, its
obligations and expenditures and the manner in which they
shall be incurred, allowed, and paid and may incur, allow,
and pay such obligations and expenditures.
(e) Related Authority.--The Corporation may take such other
actions as are necessary or appropriate to carry out the
authority provided in this section.

SEC. 1619. DISTRIBUTION OF CORPORATE ASSETS IN EVENT OF
DISSOLUTION.

(a) Distribution.--If the Corporation dissolves, then--
(1) upon the dissolution of the Corporation, title to all
firearms stored at Anniston Army

[[Page H449]]
Depot, Anniston, Alabama, on the date of the dissolution, all M-16
rifles that are transferred to the Corporation under section
1615(a)(2), that are referred to in section 1616(a)(3), or
that are otherwise under the control of the Corporation, and
all trophies received by the Corporation from the National
Board for the Promotion of Rifle Practice as of such date,
shall vest in the Secretary of the Army, and the Secretary
shall have the immediate right to the possession of such
items;
(2) assets of the Corporation, other than assets described
in paragraph (1), may be distributed by the Corporation to an
organization that--
(A) is exempt from taxation under section 501(a) of the
Internal Revenue Code of 1986 as an organization described in
section 501(c)(3) of such Code; and
(B) performs functions similar to the functions described
in section 1612(a); and
(3) all assets of the Corporation that are not distributed
pursuant to paragraphs (1) and (2) shall be sold, and the
proceeds from the sale of such assets shall be deposited in
the Treasury.
(b) Prohibition.--Assets of the Corporation that are
distributed pursuant to the authority of subsection (a) may
not be distributed to an individual.
Subtitle B--Transitional Provisions

SEC. 1621. TRANSFER OF FUNDS AND PROPERTY TO THE CORPORATION.

(a) Funds.--(1) On the date of the submission of a
certification in accordance with section 1623 or, if earlier,
October 1, 1996, the Secretary of the Army shall transfer to
the Corporation--
(A) the amounts that are available to the National Board
for the Promotion of Rifle Practice from sales programs and
fees collected in connection with competitions sponsored by
the Board; and
(B) all funds that are in the nonappropriated fund account
known as the National Match Fund.
(2) The funds transferred under paragraph (1)(A) shall be
used to carry out the Civilian Marksmanship Program.
(3) Transfers under paragraph (1)(B) shall be made without
cost to the Corporation.
(b) Property.--The Secretary of the Army shall, as soon as
practicable, transfer to the Corporation the following:
(1) All automated data equipment, all other office
equipment, targets, target frames, vehicles, and all other
property under the control of the Director of Civilian
Marksmanship and the Civilian Marksmanship Support Detachment
on the day before the date of the enactment of this Act
(other than property to which section 1615(a) applies).
(2) Title to property under the control of the National
Match Fund on such day.
(3) All supplies and appliances under the control of the
Director of the Civilian Marksmanship Program on such day.
(c) Offices.--The Corporation may use the office space of
the Office of the Director of Civilian Marksmanship until the
date on which the Secretary of the Army completes the
transfer of the Civilian Marksmanship Program to the
Corporation. The Corporation shall assume control of the
leased property occupied as of the date of the enactment of
this Act by the Civilian Marksmanship Support Detachment,
located at the Erie Industrial Park, Port Clinton, Ohio.
(d) Costs of Transfers.--Any transfer of items to the
Corporation under this section shall be made without cost to
the Corporation.

SEC. 1622. CONTINUATION OF ELIGIBILITY FOR CERTAIN CIVIL
SERVICE BENEFITS FOR FORMER FEDERAL EMPLOYEES
OF CIVILIAN MARKSMANSHIP PROGRAM.

(a) Continuation of Eligibility.--Notwithstanding any other
provision of law, a Federal employee who is employed by the
Department of Defense to support the Civilian Marksmanship
Program as of the day before the date of the transfer of the
Program to the Corporation and is offered employment by the
Corporation as part of the transition described in section
1612(d) may, if the employee becomes employed by the
Corporation, continue to be eligible during continuous
employment with the Corporation for the Federal health,
retirement, and similar benefits (including life insurance)
for which the employee would have been eligible had the
employee continued to be employed by the Department of
Defense. The employer's contribution for such benefits shall
be paid by the Corporation.
(b) Regulations.--The Director of the Office of Personnel
Management shall prescribe regulations to carry out
subsection (a).

SEC. 1623. CERTIFICATION OF COMPLETION OF TRANSITION.

(a) Certification Requirement.--Upon completion of the
appointment of the Board of Directors for the Corporation
under section 1611(c)(5) and of the transition required under
section 1612(d), the Secretary of the Army shall submit to
the Committee on Armed Services of the Senate and the
Committee on National Security of the House of
Representatives a certification of the completion of such
actions.
(b) Publication of Certification.--The Secretary shall take
such actions as are necessary to ensure that the
certification is published in the Federal Register promptly
after the submission of the certification under subsection
(a).

SEC. 1624. REPEAL OF AUTHORITY FOR CONDUCT OF CIVILIAN
MARKSMANSHIP PROGRAM BY THE ARMY.

(a) Repeals.--(1) Sections 4307, 4308, 4310, and 4311 of
title 10, United States Code, are repealed.
(2) The table of sections at the beginning of chapter 401
of such title is amended by striking out the items relating
to sections 4307, 4308, 4310, and 4311.
(b) Conforming Amendments.--(1) Section 4313 of title 10,
United States Code, is amended--
(A) by striking out subsection (b); and
(B) in subsection (a)--
(i) by striking out ``(a) Junior Competitors.--'' and
inserting in lieu thereof ``(a) Allowances for Participation
of Junior Competitors.--''; and
(ii) in paragraph (3), by striking out ``(3) For the
purposes of this subsection'' and inserting in lieu thereof
``(b) Junior Competitor Defined.--For the purposes of
subsection (a)''.
(2) Section 4316 of such title is amended by striking out
``, including fees charged and amounts collected pursuant to
subsections (b) and (c) of section 4308,''.
(3) Section 925(a)(2)(A) of title 18, United States Code,
is amended by inserting after ``section 4308 of title 10''
the following: ``before the repeal of such section by section
1624(a) of the Corporation for the Promotion of Rifle
Practice and Firearms Safety Act''.
(c) Effective Date.--The amendments made by this section
shall take effect on the earlier of--
(1) the date on which the Secretary of the Army submits a
certification in accordance with section 1623; or
(2) October 1, 1996.
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

This division may be cited as the ``Military Construction
Authorization Act for Fiscal Year 1996''.
TITLE XXI--ARMY

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION
PROJECTS.

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(1), the Secretary of the Army may acquire real
property and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

Army: Inside the United States
------------------------------------------------------------------------
Installation or
State location Amount
------------------------------------------------------------------------
Alabama.......................... Fort Rucker.......... $5,900,000
Redstone Arsenal..... $5,000,000
Arizona.......................... Fort Huachuca........ $16,000,000
California....................... Fort Irwin........... $25,500,000
Presidio of San $3,000,000
Francisco.
Colorado......................... Fort Carson.......... $30,850,000
District of Columbia............. Fort McNair.......... $13,500,000
Georgia.......................... Fort Benning......... $37,900,000
Fort Gordon.......... $5,750,000
Fort Stewart......... $8,400,000
Hawaii........................... Schofield Barracks... $30,000,000
Kansas........................... Fort Riley........... $7,000,000
Kentucky......................... Fort Campbell........ $10,000,000
Fort Knox............ $5,600,000
New Jersey....................... Picatinny Arsenal.... $5,500,000
New Mexico....................... White Sands Missile $2,050,000
Range.
New York......................... Fort Drum............ $8,800,000
United States $8,300,000
Military Academy.
Watervliet Arsenal... $680,000
North Carolina................... Fort Bragg........... $29,700,000
Oklahoma......................... Fort Sill............ $14,300,000
South Carolina................... Naval Weapons
Station, Charleston. $25,700,000
Fort Jackson......... $32,000,000
Texas............................ Fort Hood............ $32,500,000
Fort Bliss........... $56,900,000
Fort Sam Houston..... $7,000,000
Virginia......................... Fort Eustis.......... $16,400,000
Washington....................... Fort Lewis........... $32,100,000
CONUS Classified................. Classified Location.. $1,900,000
---------------
Total:............. $478,230,000

------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(2), the Secretary of the Army may acquire real
property and carry out military construction projects for the
locations outside the United States, and in the amounts, set
forth in the following table:

Army: Outside the United States
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Korea............................ Camp Casey........... $4,150,000
Camp Hovey........... $13,500,000
Camp Pelham.......... $5,600,000
Camp Stanley......... $6,800,000
Yongsan.............. $4,500,000
Overseas Classified.............. Classified Location.. $48,000,000
Worldwide........................ Host Nation Support.. $20,000,000
---------------
Total:............. $102,550,000

------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts
appropriated 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 installations, for the purposes, and in
the amounts set forth in the following table:

[[Page H450]]

Army: Family Housing
----------------------------------------------------------------------------------------------------------------
State Installation Purpose Amount
----------------------------------------------------------------------------------------------------------------
Kentucky................................ Fort Knox................. 150 units................. $19,000,000
New York................................ United States Military
Academy, West Point...... 119 units................. $16,500,000
Virginia................................ Fort Lee.................. 135 units................. $19,500,000
Washington.............................. Fort Lewis................ 84 units.................. $10,800,000
---------------
Total:.................. $65,800,000

----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(5)(A), the Secretary of the Army may carry out
architectural and engineering services and construction
design activities with respect to the construction or
improvement of family housing units in an amount not to
exceed $2,000,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization
of appropriations in section 2104(a)(5)(A), the Secretary of
the Army may improve existing military family housing in an
amount not to exceed $48,856,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

(a) In General.--Subject to subsection (c), funds are
hereby authorized to be appropriated for fiscal years
beginning after September 30, 1995, for military
construction, land acquisition, and military family housing
functions of the Department of the Army in the total amount
of $2,147,427,000 as follows:
(1) For military construction projects inside the United
States authorized by section 2101(a), $478,230,000.
(2) For military construction projects outside the United
States authorized by section 2101(b), $102,550,000.
(3) For unspecified minor military construction projects
authorized by section 2805 of title 10, United States Code,
$9,000,000.
(4) For architectural and engineering services and
construction design under section 2807 of title 10, United
States Code, $34,194,000.
(5) For military family housing functions:
(A) For construction and acquisition, planning and design,
and improvements of military family housing and facilities,
$116,656,000.
(B) For support of military family housing (including the
functions described in section 2833 of title 10, United
States Code), $1,337,596,000.
(6) For the Homeowners Assistance Program, as authorized by
section 2832 of title 10, United States Code, $75,586,000, to
remain available until expended.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section
2853 of title 10, United States Code, and any other cost
variation authorized by law, the total cost of all projects
carried out under section 2101 of this Act may not exceed the
total amount authorized to be appropriated under paragraphs
(1) and (2) of subsection (a).
(c) Adjustment.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (6) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by $6,385,000, which
represents the combination of project savings resulting from
favorable bids, reduced overhead costs, and cancellations due
to force structure changes.
TITLE XXII--NAVY

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION
PROJECTS.

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(1), and, in the case of the project described in
section 2204(b)(2), other amounts appropriated pursuant to
authorizations enacted after this Act for that project, the
Secretary of the Navy may acquire real property and carry out
military construction projects for the installations and
locations inside the United States, and in the amounts, set
forth in the following table:

Navy: Inside the United States
------------------------------------------------------------------------
Installation or
State location Amount
------------------------------------------------------------------------
California....................... Marine Corps Air-
Ground Combat
Center, Twentynine
Palms............... $2,490,000
Marine Corps Base,
Camp Pendleton...... $27,584,000
Naval Command,
Control, and Ocean
Surveillance Center,
San Diego........... $3,170,000
Naval Air Station,
Lemoore............. $7,600,000
Naval Air Station,
North Island........ $99,150,000
Naval Air Warfare
Center Weapons
Division, China Lake $3,700,000
Naval Air Warfare
Center Weapons
Division, Point Mugu $1,300,000
Naval Construction
Batallion Center,
Port Hueneme........ $16,700,000
Naval Station, San
Diego............... $19,960,000
Florida.......................... Naval School
Explosive Ordinance
Disposal, Eglin Air
Force Base.......... $16,150,000
Naval Technical
Training Center,
Corry Station,
Pensacola........... $2,565,000
Georgia.......................... Strategic Weapons
Facility, Atlantic,
Kings Bay........... $2,450,000
Hawaii........................... Honolulu Naval
Computer and
Telecommunications
Area, Master Station
Eastern Pacific..... $1,980,000
Intelligence Center
Pacific, Pearl
Harbor.............. $2,200,000
Naval Submarine Base,
Pearl Harbor........ $22,500,000
Illinois......................... Naval Training
Center, Great Lakes. $12,440,000
Indiana.......................... Crane Naval Surface
Warfare Center...... $3,300,000
Maryland......................... Naval Academy,
Annapolis........... $3,600,000
New Jersey....................... Naval Air Warfare
Center Aircraft
Division, Lakehurst. $1,700,000
North Carolina................... Marine Corps Air
Station, Cherry
Point............... $11,430,000
Marine Corps Air
Station, New River.. $14,650,000
Marine Corps Base,
Camp LeJeune........ $59,300,000
Pennsylvania..................... Philadelphia Naval
Shipyard............ $6,000,000
South Carolina................... Marine Corps Air
Station, Beaufort... $15,000,000
Texas............................ Naval Air Station,
Corpus Christi...... $4,400,000
Naval Air Station,
Kingsville.......... $2,710,000
Naval Station,
Ingleside........... $2,640,000
Virginia......................... Fleet and Industrial
Supply Center,
Williamsburg........ $8,390,000
Henderson Hall,
Arlington........... $1,900,000
Marine Corps Combat
Development Command,
Quantico............ $3,500,000
Naval Hospital,
Portsmouth.......... $9,500,000
Naval Station,
Norfolk............. $10,580,000
Naval Weapons
Station, Yorktown... $1,300,000
Washington....................... Naval Undersea
Warfare Center
Division, Keyport... $5,300,000
Puget Sound Naval
Shipyard, Bremerton. $19,870,000
West Virginia.................... Naval Security Group
Detachment.......... $7,200,000
CONUS Classified................. Classified Locations. $1,200,000
---------------
Total:............. $435,409,000

------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(2), the Secretary of the Navy may acquire real
property and carry out 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
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Guam............................. Naval Computer and
Telecommunications
Area, Master Station
Western Pacific..... $2,250,000
Navy Public Works
Center, Guam........ $16,180,000
Italy............................ Naval Air Station,
Sigonella........... $12,170,000
Naval Support
Activity, Naples.... $24,950,000
Puerto Rico...................... Naval Security Group
Activity, Sabana
Seca................ $2,200,000
Naval Station,
Roosevelt Roads..... $11,500,000
---------------
Total.............. $69,250,000

------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts
appropriated pursuant to the authorization of appropriations
in section 2204(a)(5)(A), the Secretary of the Navy may
construct or acquire family housing units (including land
acquisition) at the installations, for the purposes, and in
the amounts set forth in the following table:

Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
State Installation Purpose Amount
----------------------------------------------------------------------------------------------------------------
California.............................. Marine Corps Base, Camp
Pendleton................ 138 units................. $20,000,000
Marine Corps Base, Camp
Pendleton................ Community Center.......... $1,438,000
Marine Corps Base, Camp
Pendleton................ Housing Office............ $707,000
Naval Air Station, Lemoore 240 units................. $34,900,000
Pacific Missile Test
Center, Point Mugu....... Housing Office............ $1,020,000
Public Works Center, San
Diego.................... 346 units................. $49,310,000
Hawaii.................................. Naval Complex, Oahu....... 252 units................. $48,400,000
Maryland................................ Naval Air Test Center,
Patuxent River........... Warehouse................. $890,000
US Naval Academy,
Annapolis................ Housing Office............ $800,000
North Carolina.......................... Marine Corps Air Station,
Cherry Point............. Community Center.......... $1,003,000
Pennsylvania............................ Navy Ships Parts Control
Center, Mechanicsburg.... Housing Office............ $300,000
Puerto Rico............................. Naval Station, Roosevelt
Roads.................... Housing Office............ $710,000
Virginia................................ Naval Surface Warfare
Center, Dahlgren......... Housing Office............ $520,000
Public Works Center,
Norfolk.................. 320 units................. $42,500,000
Public Works Center,
Norfolk.................. Housing Office............ $1,390,000
West Virginia........................... Security Group Naval
Detachment, Sugar Grove.. 23 units................. $3,590,000
---------------
Total:.................. $207,478,000

----------------------------------------------------------------------------------------------------------------

(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 housing units in an amount not
to exceed $24,390,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization
of appropriations in section 2204(a)(5)(A), the Secretary of
the Navy may improve existing military family housing units
in an amount not to exceed $290,831,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

[[Page H451]]

(1) For military construction projects inside the United
States authorized by section 2201(a), $427,709,000.
(2) For military construction projects outside the United
States authorized by section 2201(b), $69,250,000.
(3) For unspecified minor construction projects authorized
by section 2805 of title 10, United States Code, $7,200,000.
(4) For architectural and engineering services and
construction design under section 2807 of title 10, United
States Code, $50,515,000.
(5) For military family housing functions:
(A) For construction and acquisition, planning and design,
and improvement of military family housing and facilities,
$522,699,000.
(B) For support of military housing (including functions
described in section 2833 of title 10, United States Code),
$1,048,329,000.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section
2853 of title 10, United States Code, and any other cost
variation authorized by law, the total cost of all projects
carried out under section 2201 of this Act may not exceed--
(1) the total amount authorized to be appropriated under
paragraphs (1) and (2) of subsection (a); and
(2) $7,700,000 (the balance of the amount authorized under
section 2201(a) for the construction of a bachelor enlisted
quarters at the Naval Construction Batallion Center, Port
Hueneme, California).
(c) Adjustment.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (5) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by $6,385,000, which
represents the combination of project savings resulting from
favorable bids, reduced overhead costs, and cancellations due
to force structure changes.

SEC. 2205. REVISION OF FISCAL YEAR 1995 AUTHORIZATION OF
APPROPRIATIONS TO CLARIFY AVAILABILITY OF FUNDS
FOR LARGE ANECHOIC CHAMBER FACILITY, PATUXENT
RIVER NAVAL WARFARE CENTER, MARYLAND.

Section 2204(a) of the Military Construction Authorization
Act for Fiscal Year 1995 (division B of Public Law 103-337;
108 Stat. 3033) is amended--
(1) in the matter preceding paragraph (1), by striking out
``$1,591,824,000'' and inserting in lieu thereof
``$1,601,824,000''; and
(2) by adding at the end the following:
``(6) For the construction of the large anechoic chamber
facility at the Patuxent River Naval Warfare Center, Aircraft
Division, Maryland, authorized by section 2201(a) of the
Military Construction Authorization Act for Fiscal Year 1993
(division B of Public Law 102-484; 106 Stat. 2590),
$10,000,000.''.

SEC. 2206. AUTHORITY TO CARRY OUT LAND ACQUISITION PROJECT,
HAMPTON ROADS, VIRGINIA.

The table in section 2201(a) of the Military Construction
Authorization Act for Fiscal Year 1993 (division B of Public
Law 102-484; 106 Stat. 2589) is amended--
(1) in the item relating to Damneck, Fleet Combat Training
Center, Virginia, by striking out ``$19,427,000'' in the
amount column and inserting in lieu thereof ``$14,927,000'';
and
(2) by inserting after the item relating to Damneck, Fleet
Combat Training Center, Virginia, the following new item:

------------------------------------------------------------------------

------------------------------------------------------------------------
Hampton Roads.......... $4,500,000
------------------------------------------------------------------------

SEC. 2207. ACQUISITION OF LAND, HENDERSON HALL, ARLINGTON,
VIRGINIA.

(a) Authority To Acquire.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(1), the Secretary of the Navy may acquire all right,
title, and interest of any party in and to a parcel of real
property, including an abandoned mausoleum, consisting of
approximately 0.75 acres and located in Arlington, Virginia,
the site of Henderson Hall.
(b) Demolition of Mausoleum.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(1), the Secretary may--
(1) demolish the mausoleum located on the parcel acquired
under subsection (a); and
(2) provide for the removal and disposition in an
appropriate manner of the remains contained in the mausoleum.
(c) Authority To Design Public Works Facility.--Using
amounts appropriated pursuant to the authorization of
appropriations in section 2204(a)(1), the Secretary may
obtain architectural and engineering services and
construction design for a warehouse and office facility for
the Marine Corps to be constructed on the property acquired
under subsection (a).
(d) Description of Property.--The exact acreage and legal
description of the real property authorized to be acquired
under subsection (a) shall be determined by a survey that is
satisfactory to the Secretary. The cost of the survey shall
be borne by the Secretary.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the acquisition under subsection (a) as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2208. ACQUISITION OR CONSTRUCTION OF MILITARY FAMILY
HOUSING IN VICINITY OF SAN DIEGO, CALIFORNIA.

(a) Authority To Use Litigation Proceeds.--Upon final
settlement in the case of Rossmoor Liquidating Trust against
United States, in the United States District Court for the
Central District of California (Case No. CV 82-0956 LEW
(Px)), the Secretary of the Treasury shall deposit in a
separate account any funds paid to the United States in
settlement of such case. At the request of the Secretary of
the Navy, the Secretary of the Treasury shall make available
amounts in the account to the Secretary of the Navy solely
for the acquisition or construction of military family
housing, including the acquisition of land necessary for such
acquisition or construction, for members of the Armed Forces
and their dependents stationed in, or in the vicinity of, San
Diego, California. In using amounts in the account, the
Secretary of the Navy may use the authorities provided in
subchapter IV of chapter 169 of title 10, United States Code,
as added by section 2801 of this Act.
(b) Units Authorized.--Not more than 150 military family
housing units may be acquired or constructed with funds
referred to in subsection (a). The units authorized by this
subsection are in addition to any other units of military
family housing authorized to be acquired or constructed in,
or in the vicinity of, San Diego, California.
(c) Payment of Excess Into Treasury.--The Secretary of the
Treasury shall deposit into the Treasury as miscellaneous
receipts funds referred to in subsection (a) that have not
been obligated for construction under this section within
four years after receipt thereof.
(d) Limitation.--The Secretary may not enter into any
contract for the acquisition or construction of military
family housing under this section until after the expiration
of the 21-day period beginning on the day after the day on
which the Secretary transmits to the congressional defense
committees a report containing the details of such contract.
(e) Repeal of Existing Authority.--Section 2848 of the
Military Construction Authorization Act for Fiscal Years 1990
and 1991 (division B of Public Law 101-189; 103 Stat. 1666)
is repealed.
TITLE XXIII--AIR FORCE

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND
ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(1), and, in the case of the project described in
section 2304(b)(2), other amounts appropriated pursuant to
authorizations enacted after this Act for that project, the
Secretary of the Air Force may acquire real property and
carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

Air Force: Inside the United States
------------------------------------------------------------------------
Installation or
State location Amount
------------------------------------------------------------------------
Alabama.......................... Maxwell Air Force $5,200,000
Base.
Alaska........................... Eielson Air Force
Base................ $7,850,000
Elmendorf Air Force
Base................ $9,100,000
Tin City Long Range
RADAR Site.......... $2,500,000
Arizona.......................... Davis-Monthan Air $4,800,000
Force Base.
Luke Air Force Base.. $5,200,000
Arkansas......................... Little Rock Air Force $2,500,000
Base.
California....................... Beale Air Force Base. $7,500,000
Edwards Air Force $33,800,000
Base.
Travis Air Force Base $26,700,000
Vandenberg Air Force $6,000,000
Base.
Colorado......................... Buckley Air National $5,500,000
Guard Base.
Peterson Air Force $4,390,000
Base.
US Air Force Academy. $12,874,000
Delaware......................... Dover Air Force Base. $5,500,000
District of Columbia............. Bolling Air Force $12,100,000
Base.
Florida.......................... Cape Canaveral Air $1,600,000
Force Station.
Eglin Air Force Base. $13,500,000
Tyndall Air Force $1,200,000
Base.
Georgia.......................... Moody Air Force Base. $25,190,000
Robins Air Force Base $12,400,000
Hawaii........................... Hickam Air Force Base $10,700,000
Idaho............................ Mountain Home Air $18,650,000
Force Base.
Illinois......................... Scott Air Force Base. $12,700,000
Kansas........................... McConnell Air Force $9,450,000
Base.
Louisiana........................ Barksdale Air Force $2,500,000
Base.
Maryland......................... Andrews Air Force $12,886,000
Base.
Mississippi...................... Columbus Air Force $1,150,000
Base.
Keesler Air Force $6,500,000
Base.
Missouri......................... Whiteman Air Force $24,600,000
Base.
Nevada........................... Nellis Air Force Base $17,500,000
New Jersey....................... McGuire Air Force $16,500,000
Base.
New Mexico....................... Cannon Air Force Base $13,420,000
Holloman Air Force $6,000,000
Base.
Kirtland Air Force $9,156,000
Base.
North Carolina................... Pope Air Force Base.. $8,250,000
Seymour Johnson Air $5,530,000
Force Base.
North Dakota..................... Grand Forks Air Force $14,800,000
Base.
Minot Air Force Base. $1,550,000
Ohio............................. Wright Patterson Air $4,100,000
Force Base.
Oklahoma......................... Altus Air Force Base. $4,800,000
Tinker Air Force Base $11,100,000
South Carolina................... Charleston Air Force $12,500,000
Base.
Shaw Air Force Base.. $1,300,000
South Dakota..................... Ellsworth Air Force $7,800,000
Base.
Tennessee........................ Arnold Air Force Base $5,000,000
Texas............................ Dyess Air Force Base. $5,400,000
Goodfellow Air Force $1,000,000
Base.
Kelly Air Force Base. $3,244,000
Laughlin Air Force $1,400,000
Base.
Randolph Air Force $3,100,000
Base.
Sheppard Air Force $1,500,000
Base.
Utah............................. Hill Air Force Base.. $8,900,000
Virginia......................... Langley Air Force $1,000,000
Base.
Washington....................... Fairchild Air Force $15,700,000
Base.
McChord Air Force $9,900,000
Base.
Wyoming.......................... F.E. Warren Air Force $9,000,000
Base.

[[Page H452]]

CONUS Classified................. Classified Location.. $700,000
---------------
Total:............. $504,690,000

------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(2), the Secretary of the Air Force may acquire real
property and may carry out military construction projects for
the installations and locations outside the United States,
and in the amounts, set forth in the following table:

Air Force: Outside the United States
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Germany.......................... Spangdahlem Air Base. $8,380,000
Vogelweh Annex....... $2,600,000
Greece........................... Araxos Radio Relay $1,950,000
Site.
Italy............................ Aviano Air Base...... $2,350,000
Ghedi Radio Relay $1,450,000
Site.
Turkey........................... Ankara Air Station... $7,000,000
Incirlik Air Base.... $4,500,000
United Kingdom................... Lakenheath Royal Air
Force Base.......... $1,820,000
Mildenhall Royal Air $2,250,000
Force Base.
Overseas Classified.............. Classified Location.. $17,100,000
---------------
Total:............. $49,400,000

------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts
appropriated pursuant to the authorization of appropriations
in section 2304(a)(5)(A), the Secretary of the Air Force may
construct or acquire family housing units (including land
acquisition) at the installations, for the purposes, and in
the amounts set forth in the following table:

Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
State/Country Installation Purpose Amount
----------------------------------------------------------------------------------------------------------------
Alaska.................................. Elmendorf Air Force Base.. Housing Office/Maintenance
Facility................. $3,000,000
Arizona................................. Davis-Monthan Air Force
Base..................... 80 units.................. $9,498,000
Arkansas................................ Little Rock Air Force Base Replace 1 General Officer
Quarters................. $210,000
California.............................. Beale Air Force Base...... Family Housing Office..... $842,000
Edwards Air Force Base.... 127 units................. $20,750,000
Vandenberg Air Force Base. Family Housing Office..... $900,000
Vandenberg Air Force Base. 143 units................. $20,200,000
Colorado................................ Peterson Air Force Base... Family Housing Office..... $570,000
District of Columbia.................... Bolling Air Force Base.... 32 units.................. $4,100,000
Florida................................. Eglin Air Force Base...... Family Housing Office..... $500,000
Eglin Auxiliary Field 9... Family Housing Office..... $880,000
MacDill Air Force Base.... Family Housing Office..... $646,000
Patrick Air Force Base.... 70 units.................. $7,947,000
Tyndall Air Force Base.... 82 units.................. $9,800,000
Georgia................................. Moody Air Force Base...... 1 Officer & 1 General
Officer Quarter.......... $513,000
Robins Air Force Base..... 83 units.................. $9,800,000
Guam.................................... Andersen Air Force Base... Housing Maintenance
Facility................. $1,700,000
Idaho................................... Mountain Home Air Force
Base..................... Housing Management
Facility................. $844,000
Kansas.................................. McConnell Air Force Base.. 39 units.................. $5,193,000
Louisiana............................... Barksdale Air Force Base.. 62 units.................. $10,299,000
Massachusetts........................... Hanscom Air Force Base.... 32 units.................. $4,900,000
Mississippi............................. Keesler Air Force Base.... 98 units.................. $9,300,000
Missouri................................ Whiteman Air Force Base... 72 units.................. $9,948,000
Nevada.................................. Nellis Air Force Base..... 102 units................. $16,357,000
New Mexico.............................. Holloman Air Force Base... 1 General Officer Quarters $225,000
Kirtland Air Force Base... 105 units................. $11,000,000
North Carolina.......................... Pope Air Force Base....... 104 units................. $9,984,000
Seymour Johnson Air Force
Base..................... 1 General Officer Quarters $204,000
South Carolina.......................... Shaw Air Force Base....... Housing Maintenance
Facility................. $715,000
Texas................................... Dyess Air Force Base...... Housing Maintenance
Facility................. $580,000
Lackland Air Force Base... 67 units.................. $6,200,000
Sheppard Air Force Base... Management Office......... $500,000
Sheppard Air Force Base... Housing Maintenance
Facility................. $600,000
Turkey.................................. Incirlik Air Base......... 150 units................. $10,146,000
Washington.............................. McChord Air Force Base.... 50 units.................. $9,504,000
---------------
Total:.................. $198,355,000

----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(5)(A), the Secretary of the Air Force may carry out
architectural 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 $8,989,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization
of appropriations 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 $90,959,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

(a) In General.--Subject to subsection (c), funds are
hereby authorized to be appropriated for fiscal years
beginning after September 30, 1995, for military
construction, land acquisition, and military family housing
functions of the Department of the Air Force in the total
amount of $1,735,086,000 as follows:
(1) For military construction projects inside the United
States authorized by section 2301(a), $504,690,000.
(2) For military construction projects outside the United
States authorized by section 2301(b), $49,400,000.
(3) For unspecified minor construction projects authorized
by section 2805 of title 10, United States Code, $9,030,000.
(4) For architectural and engineering services and
construction design under section 2807 of title 10, United
States Code, $30,835,000.
(5) For military housing functions:
(A) For construction and acquisition, planning and design
and improvement of military family housing and facilities,
$298,303,000.
(B) For support of military family housing (including the
functions described in section 2833 of title 10, United
States Code), $849,213,000.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section
2853 of title 10, United States Code, and any other cost
variation authorized by law, the total cost of all projects
carried out under section 2301 of this Act may not exceed--
(1) the total amount authorized to be appropriated under
paragraphs (1) and (2) of subsection (a); and
(2) $5,400,000 (the balance of the amount authorized under
section 2301(a) for the construction of a corrosion control
facility at Tinker Air Force Base, Oklahoma).
(c) Adjustment.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (5) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by $6,385,000, which
represents the combination of project savings resulting from
favorable bids, reduced overhead costs, and cancellations due
to force structure changes.

SEC. 2305. RETENTION OF ACCRUED INTEREST ON FUNDS DEPOSITED
FOR CONSTRUCTION OF FAMILY HOUSING, SCOTT AIR
FORCE BASE, ILLINOIS.

(a) Retention of Interest.--Section 2310 of the Military
Construction Authorization Act for Fiscal Year 1994 (division
B of Public Law 103-160; 107 Stat. 1874) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following new
subsection:
``(b) Retention of Interest.--Interest accrued on the funds
transferred to the County pursuant to subsection (a) shall be
retained in the same account as the transferred funds and
shall be available to the County for the same purpose as the
transferred funds.''.
(b) Limitation on Units Constructed.--Subsection (c) of
such section, as redesignated by subsection (a)(1), is
amended by adding at the end the following new sentence:
``The number of units constructed using the transferred funds
(and interest accrued on such funds) may not exceed the
number of units of military family housing authorized for
Scott Air Force Base in section 2302(a) of the Military
Construction Authorization Act for Fiscal Year 1993.''.
(c) Effect of Completion of Construction.--Such section is
further amended by adding at the end the following new
subsection:

[[Page H453]]

``(d) Completion of Construction.--Upon the completion of
the construction authorized by this section, all funds
remaining from the funds transferred pursuant to subsection
(a), and the remaining interest accrued on such funds, shall
be deposited in the general fund of the Treasury of the
United States.''.
(d) Reports on Accrued Interest.--Such section is further
amended by adding at the end the following new subsection:
``(e) Reports on Accrued Interest.--Not later than March 1
of each year following a year in which funds available to the
County under this section are used by the County for the
purpose referred to in subsection (c), the Secretary shall
submit to the congressional defense committees a report
setting forth the amount of interest that accrued on such
funds during the preceding year.''.
TITLE XXIV--DEFENSE AGENCIES

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND
ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2405(a)(1), and, in the case of the project described in
section 2405(b)(2), other amounts appropriated pursuant to
authorizations enacted after this Act for that project, the
Secretary of Defense may acquire real property and carry out
military construction projects for the installations and
locations inside the United States, and in the amounts, set
forth in the following table:

Defense Agencies: Inside the United States
------------------------------------------------------------------------
Installation or
Agency/State location Amount
------------------------------------------------------------------------
Ballistic Missile Defense
Organization
Texas............................ Fort Bliss........... $13,600,000

Defense Finance & Accounting
Service
Ohio............................. Columbus Center...... $72,403,000

Defense Intelligence Agency
District of Columbia............. Bolling Air Force
Base................ $498,000

Defense Logistics Agency
Alabama.......................... Defense Distribution
Anniston............ $3,550,000
California....................... Defense Distribution
Stockton............ $15,000,000
DFSC, Point Mugu..... $750,000
Delaware......................... DFSC, Dover Air Force
Base................ $15,554,000
Florida.......................... DFSC, Eglin Air Force
Base................ $2,400,000
Louisiana........................ DFSC, Barksdale Air
Force Base.......... $13,100,000
New Jersey....................... DFSC, McGuire Air
Force Base.......... $12,000,000
Pennsylvania..................... Defense Distribution
New Cumberland--DDSP $4,600,000
Virginia......................... Defense Distribution
Depot--DDNV......... $10,400,000

Defense Mapping Agency
Missouri......................... Defense Mapping
Agency Aerospace
Center.............. $40,300,000

Defense Medical Facility Office
Alabama.......................... Maxwell Air Force
Base................ $10,000,000
Arizona.......................... Luke Air Force Base.. $8,100,000
California....................... Fort Irwin........... $6,900,000
Marine Corps Base,
Camp Pendleton...... $1,700,000
Vandenberg Air Force
Base................ $5,700,000
Delaware......................... Dover Air Force Base. $4,400,000
Georgia.......................... Fort Benning......... $5,600,000
Louisiana........................ Barksdale Air Force
Base................ $4,100,000
Maryland......................... Bethesda Naval
Hospital............ $1,300,000
Walter Reed Army
Institute of
Research............ $1,550,000
Texas............................ Fort Hood............ $5,500,000
Lackland Air Force
Base................ $6,100,000
Virginia......................... Northwest Naval
Security Group
Activity............ $4,300,000

National Security Agency
Maryland......................... Fort Meade........... $18,733,000

Office of the Secretary of
Defense
Inside the United States......... Classified location.. $11,500,000

Department of Defense Dependents
Schools
Alabama.......................... Maxwell Air Force
Base................ $5,479,000
Georgia.......................... Fort Benning......... $1,116,000
South Carolina................... Fort Jackson......... $576,000

Special Operations Command
California....................... Camp Pendleton....... $5,200,000
Florida.......................... Eglin Air Force Base
(Duke Field)........ $2,400,000
Eglin Auxiliary Field
9................... $14,150,000
North Carolina................... Fort Bragg........... $23,800,000
Pennsylvania..................... Olmstead Field,
Harrisburg IAP...... $1,643,000
Virginia......................... Dam Neck............. $4,500,000
Naval Amphibious
Base, Little Creek.. $6,100,000
---------------

Total:............. $364,602,000
------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2405(a)(2), the Secretary of Defense may acquire real
property and carry out 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/Country Installation name Amount
------------------------------------------------------------------------
Defense Logistics Agency
Puerto Rico...................... Defense Fuel Support
Point, Roosevelt
Roads............... $6,200,000
Spain............................ DFSC Rota............ $7,400,000

Defense Medical Facility Office
Italy............................ Naval Support
Activity, Naples.... $5,000,000

Department of Defense Dependents
Schools
Germany.......................... Ramstein Air Force
Base................ $19,205,000
Italy............................ Naval Air Station,
Sigonella........... $7,595,000

National Security Agency
United Kingdom................... Menwith Hill Station. $677,000

Special Operations Command
Guam............................. Naval Station, Guam.. $8,800,000
---------------
Total:............. $54,877,000
------------------------------------------------------------------------

SEC. 2402. MILITARY FAMILY HOUSING PRIVATE INVESTMENT.

(a) Availability of Funds for Investment.--Of the amount
authorized to be appropriated pursuant to section
2405(a)(11)(A), $22,000,000 shall be available for crediting
to the Department of Defense Family Housing Improvement Fund
established by section 2883(a)(1) of title 10, United States
Code (as added by section 2801 of this Act).
(b) Use of Funds.--The Secretary of Defense may use funds
credited to the Department of Defense Family Housing
Improvement Fund under subsection (a) to carry out any
activities authorized by subchapter IV of chapter 169 of such
title (as added by such section) with respect to military
family housing.

SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization
of appropriations in section 2405(a)(11)(A), the Secretary of
Defense may improve existing military family housing units in
an amount not to exceed $3,772,000.

SEC. 2404. ENERGY CONSERVATION PROJECTS.

Using amounts appropriated pursuant to the authorization of
appropriations in section 2405(a)(9), the Secretary of
Defense may carry out energy conservation projects under
section 2865 of title 10, United States Code.

SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

(a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
1995, for military construction, land acquisition, and
military family housing functions of the Department of
Defense (other than the military departments), in the total
amount of $4,629,491,000 as follows:
(1) For military construction projects inside the United
States authorized by section 2401(a), $329,599,000.
(2) For military construction projects outside the United
States authorized by section 2401(b), $54,877,000.
(3) For military construction projects at Portsmouth Naval
Hospital, Virginia, authorized by section 2401(a) of the
Military Construction Authorization Act for Fiscal Years 1990
and 1991 (division B of Public Law 101-189; 103 Stat. 1640),
$47,900,000.
(4) For military construction projects at Elmendorf Air
Force Base, Alaska, hospital replacement, authorized by
section 2401(a) of the Military Construction Authorization
Act for Fiscal Year 1993 (division B of Public Law 102-484;
106 Stat. 2599), $28,100,000.
(5) For military construction projects at Walter Reed Army
Institute of Research, Maryland, hospital replacement,
authorized by section 2401(a) of the Military Construction
Authorization Act for Fiscal Year 1993 (division B of Public
Law 102-484; 106 Stat. 2599), $27,000,000.
(6) For unspecified minor construction projects under
section 2805 of title 10, United States Code, $23,007,000.
(7) For contingency construction projects of the Secretary
of Defense under section 2804 of title 10, United States
Code, $11,037,000.
(8) For architectural and engineering services and
construction design under section 2807 of title 10, United
States Code, $68,837,000.
(9) For energy conservation projects authorized by section
2404, $40,000,000.
(10) For base closure and realignment activities as
authorized by the Defense Base Closure and Realignment Act of
1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C.
2687 note), $3,897,892,000.
(11) For military family housing functions:
(A) For construction and acquisition and improvement of
military family housing and facilities, $25,772,000.
(B) For support of military housing (including functions
described in section 2833 of title 10, United States Code),
$40,467,000, of which not more than $24,874,000 may be
obligated or expended for the leasing of military family
housing units worldwide.
(b) Limitation of Total Cost of Construction Projects.--
Notwithstanding the cost variation authorized by section 2853
of title 10, United States Code, and any other cost
variations authorized by law, the total cost of all projects
carried out under section 2401 of this Act may not exceed--
(1) the total amount authorized to be appropriated under
paragraphs (1) and (2) of subsection (a); and
(2) $35,003,000 (the balance of the amount authorized under
section 2401(a) for the construction of a center of the
Defense Finance and Accounting Service at Columbus, Ohio).

SEC. 2406. LIMITATIONS ON USE OF DEPARTMENT OF DEFENSE BASE
CLOSURE ACCOUNT 1990.

(a) Set Aside for 1995 Round.--Of the amounts appropriated
pursuant to the authorization of appropriations in section
2405(a)(10), $784,569,000 shall be available only for the
purposes described in section 2905 of

[[Page H454]]
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) with respect
to military installations approved for closure or realignment
in 1995.
(b) Construction.--Amounts appropriated pursuant to the
authorization of appropriations in section 2405(a)(10) may
not be obligated to carry out a construction project with
respect to military installations approved for closure or
realignment in 1995 until after the date on which the
Secretary of Defense submits to Congress a five-year program
for executing the 1995 base realignment and closure plan. The
limitation contained in this subsection shall not prohibit
site surveys, environmental baseline surveys, environmental
analysis under the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.), and planning and design work
conducted in anticipation of such construction.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR
1995 PROJECTS.

The table in section 2401 of the Military Construction
Authorization Act for Fiscal Year 1995 (division B of Public
Law 103-337; 108 Stat. 3040), under the agency heading
relating to Chemical Weapons and Munitions Destruction, is
amended--
(1) in the item relating to Pine Bluff Arsenal, Arkansas,
by striking out ``$3,000,000'' in the amount column and
inserting in lieu thereof ``$115,000,000''; and
(2) in the item relating to Umatilla Army Depot, Oregon, by
striking out ``$12,000,000'' in the amount column and
inserting in lieu thereof ``$186,000,000''.

SEC. 2408. REDUCTION IN AMOUNTS AUTHORIZED TO BE APPROPRIATED
FOR FISCAL YEAR 1994 CONTINGENCY CONSTRUCTION
PROJECTS.

Section 2403(a) of the Military Construction Authorization
Act for Fiscal Year 1994 (division B of Public Law 103-160;
107 Stat. 1876) is amended--
(1) in the matter preceding paragraph (1), by striking out
``$3,268,394,000'' and inserting in lieu thereof
``$3,260,263,000''; and
(2) in paragraph (10), by striking out ``$12,200,000'' and
inserting in lieu thereof ``$4,069,000''.
TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION
PROJECTS.

The Secretary of Defense may make contributions for the
North Atlantic Treaty Organization Infrastructure program as
provided in section 2806 of title 10, United States Code, in
an amount not to exceed the sum of the amount authorized to
be appropriated for this purpose in section 2502 and the
amount collected from the North Atlantic Treaty Organization
as a result of construction previously financed by the United
States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

Funds are hereby authorized to be appropriated for fiscal
years beginning after September 30, 1995, for contributions
by the Secretary of Defense under section 2806 of title 10,
United States Code, for the share of the United States of the
cost of projects for the North Atlantic Treaty Organization
Infrastructure program, as authorized by section 2501, in the
amount of $161,000,000.
TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND
ACQUISITION PROJECTS.

There are authorized to be appropriated for fiscal years
beginning after September 30, 1995, for the costs of
acquisition, architectural and engineering services, and
construction of facilities for the Guard and Reserve Forces,
and for contributions therefor, under chapter 133 of title
10, United States Code (including the cost of acquisition of
land for those facilities), the following amounts:
(1) For the Department of the Army--
(A) for the Army National Guard of the United States,
$134,802,000; and
(B) for the Army Reserve, $73,516,000.
(2) For the Department of the Navy, for the Naval and
Marine Corps Reserve, $19,055,000.
(3) For the Department of the Air Force--
(A) for the Air National Guard of the United States,
$170,917,000; and
(B) for the Air Force Reserve, $36,232,000.

SEC. 2602. REDUCTION IN AMOUNT AUTHORIZED TO BE APPROPRIATED
FOR FISCAL YEAR 1994 AIR NATIONAL GUARD
PROJECTS.

Section 2601(3)(A) of the Military Construction
Authorization Act for Fiscal Year 1994 (division B of Public
Law 103-160; 107 Stat. 1878) is amended by striking out
``$236,341,000'' and inserting in lieu thereof
``$229,641,000''.

SEC. 2603. CORRECTION IN AUTHORIZED USES OF FUNDS FOR ARMY
NATIONAL GUARD PROJECTS IN MISSISSIPPI.

(a) In General.--Subject to subsection (b), amounts
appropriated pursuant to the authorization of appropriations
in section 2601(1)(A) of the Military Construction
Authorization Act for Fiscal Year 1994 (division B of Public
Law 103-160; 107 Stat. 1878) for the addition or alteration
of Army National Guard Armories at various locations in the
State of Mississippi shall be available for the addition,
alteration, or new construction of armory facilities and an
operation and maintenance shop facility (including the
acquisition of land for such facilities) at various locations
in the State of Mississippi.
(b) Notice and Wait.--The amounts referred to in subsection
(a) shall not be available for construction with respect to a
facility referred to in that subsection until 21 days after
the date on which the Secretary of the Army submits to
Congress a report describing the construction (including any
land acquisition) to be carried out with respect to the
facility.
TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED
TO BE SPECIFIED BY LAW.

(a) Expiration of Authorizations After Three Years.--Except
as provided in subsection (b), all authorizations contained
in titles XXI through XXVI for military construction
projects, land acquisition, family housing projects and
facilities, and contributions to the North Atlantic Treaty
Organization Infrastructure program (and authorizations of
appropriations therefor) shall expire on the later of--
(1) October 1, 1998; or
(2) the date of the enactment of an Act authorizing funds
for military construction for fiscal year 1999.
(b) Exception.--Subsection (a) shall not apply to
authorizations for military construction projects, land
acquisition, family housing projects and facilities, and
contributions to the North Atlantic Treaty Organization
Infrastructure program (and authorizations of appropriations
therefor), for which appropriated funds have been obligated
before the later of--
(1) October 1, 1998; or
(2) the date of the enactment of an Act authorizing funds
for fiscal year 1999 for military construction projects, land
acquisition, family housing projects and facilities, or
contributions to the North Atlantic Treaty Organization
Infrastructure program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR
1993 PROJECTS.

(a) Extensions.--Notwithstanding section 2701 of the
Military Construction Authorization Act for Fiscal Year 1993
(division B of Public Law 102-484; 106 Stat. 2602),
authorizations for the projects set forth in the tables in
subsection (b), as provided in section 2101, 2301, or 2601 of
that Act or in section 2201 of that Act (as amended by
section 2206 of this Act), shall remain in effect until
October 1, 1996, or the date of the enactment of an Act
authorizing funds for military construction for fiscal year
1997, whichever is later.
(b) Tables.--The tables referred to in subsection (a) are
as follows:

Army: Extension of 1993 Project Authorizations
----------------------------------------------------------------------------------------------------------------
State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
Arkansas.............................. Pine Bluff Arsenal....... Ammunition Demilitarization
Support Facility............ $15,000,000
Hawaii................................ Schofield Barracks....... Add/Alter Sewage Treatment
Plant....................... $17,500,000
----------------------------------------------------------------------------------------------------------------

Navy: Extension of 1993 Project Authorizations
----------------------------------------------------------------------------------------------------------------
State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
California............................ Camp Pendleton Marine
Corps Base.............. Sewage Treatment Plant
Modifications............... $19,740,000
Maryland.............................. Patuxent River Naval
Warfare Center.......... Large Anechoic Chamber, Phase
I........................... $60,990,000
Mississippi........................... Meridian Naval Air
Station................. Child Development Center..... $1,100,000
Virginia.............................. Hampton Roads............ Land Acquisition............. $4,500,000
----------------------------------------------------------------------------------------------------------------

Air Force: Extension of 1993 Project Authorizations
----------------------------------------------------------------------------------------------------------------
State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
Arkansas.............................. Little Rock Air Force
Base.................... Fire Training Facility....... $710,000

[[Page H455]]

District of Columbia.................. Bolling Air Force Base... Civil Engineer Complex....... $9,400,000
Mississippi........................... Keesler Air Force Base... Alter Student Dormitory...... $3,100,000
North Carolina........................ Pope Air Force Base...... Construct Bridge Road and
Utilities................... $4,000,000
Pope Air Force Base...... Munitions Storage Complex.... $4,300,000
Virginia.............................. Langley Air Force Base... Base Engineer Complex........ $5,300,000
Guam.................................. Andersen Air Base........ Landfill..................... $10,000,000
Portugal.............................. Lajes Field.............. Water Wells.................. $865,000
Lajes Field.............. Fire Training Facility....... $950,000
----------------------------------------------------------------------------------------------------------------

Army National Guard: Extension of 1993 Project Authorizations
----------------------------------------------------------------------------------------------------------------
State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
Alabama............................... Tuscaloosa............... Armory....................... $2,273,000
Union Springs............ Armory....................... $813,000
Oregon................................ La Grande................ Organizational Maintenance
Shop........................ $1,220,000
La Grande................ Armory Addition.............. $3,049,000
Pennsylvania.......................... Indiana.................. Armory....................... $1,700,000
Rhode Island.......................... North Kingston........... Add/Alter Armory............. $3,330,000
----------------------------------------------------------------------------------------------------------------

Army Reserve: Extension of 1993 Project Authorizations
----------------------------------------------------------------------------------------------------------------
State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
West Virginia......................... Bluefield................ United States Army Reserve
Center...................... $1,921,000
Clarksburg............... United States Army Reserve
Center...................... $1,566,000
Grantville............... United States Army Reserve
Center...................... $2,785,000
Lewisburg................ United States Army Reserve
Center...................... $1,631,000
Weirton.................. United States Army Reserve
Center...................... $3,481,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR
1992 PROJECTS.

(a) Extensions.--Notwithstanding section 2701 of the
Military Construction Authorization Act for Fiscal Year 1992
(division B of Public Law 102-190; 105 Stat. 1535),
authorizations for the projects set forth in the tables in
subsection (b), as provided in section 2101 or 2601 of that
Act, and extended by section 2702 of the Military
Construction Authorization Act for Fiscal Year 1995 (division
B of Public Law 103-337; 108 Stat. 3047), shall remain in
effect until October 1, 1996, or the date of the enactment of
an Act authorizing funds for military construction for fiscal
year 1997, whichever is later.
(b) Tables.--The tables referred to in subsection (a) are
as follows:

Army: Extension of 1992 Project Authorizations
----------------------------------------------------------------------------------------------------------------
State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
Oregon................................ Umatilla Army Depot...... Ammunition Demilitarization
Support Facility............ $3,600,000
Umatilla Army Depot...... Ammunition Demilitarization
Utilities................... $7,500,000
----------------------------------------------------------------------------------------------------------------

Army National Guard: Extension of 1992 Project Authorization
----------------------------------------------------------------------------------------------------------------
State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
Ohio.................................. Toledo................... Armory....................... $3,183,000
----------------------------------------------------------------------------------------------------------------

Army Reserve: Extension of 1992 Project Authorization
----------------------------------------------------------------------------------------------------------------
State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
Tennessee............................. Jackson.................. Joint Training Facility...... $1,537,000
----------------------------------------------------------------------------------------------------------------

TITLE XXVIII--GENERAL PROVISIONS
Subtitle A--Military Housing Privatization Initiative

SEC. 2801. ALTERNATIVE AUTHORITY FOR CONSTRUCTION AND
IMPROVEMENT OF MILITARY HOUSING.

(a) Alternative Authority To Construct and Improve Military
Housing.--(1) Chapter 169 of title 10, United States Code, is
amended by adding at the end the following new subchapter:

``SUBCHAPTER IV--ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT
OF MILITARY HOUSING

``Sec.
``2871. Definitions.
``2872. General authority.
``2873. Direct loans and loan guarantees.
``2874. Leasing of housing to be constructed.
``2875. Investments in nongovernmental entities.
``2876. Rental guarantees.
``2877. Differential lease payments.
``2878. Conveyance or lease of existing property and facilities.
``2879. Interim leases.
``2880. Unit size and type.
``2881. Ancillary supporting facilities.
``2882. Assignment of members of the armed forces to housing units.
``2883. Department of Defense Housing Funds.
``2884. Reports.
``2885. Expiration of authority.

``Sec. 2871. Definitions

``In this subchapter:
``(1) The term `ancillary supporting facilities' means
facilities related to military housing units, including child
care centers, day care centers, tot lots, community centers,
housing offices, dining facilities, unit offices, and other
similar facilities for the support of military housing.
``(2) The term `base closure law' means the following:
``(A) Section 2687 of this title.
``(B) Title II of the Defense Authorization Amendments and
Base Closure and Realignment Act (Public Law 100-526; 10
U.S.C. 2687 note).
``(C) The Defense Base Closure and Realignment Act of 1990
(part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
note).
``(3) The term `construction' means the construction of
military housing units and ancillary supporting facilities or
the improvement or rehabilitation of existing units or
ancillary supporting facilities.
``(4) The term `contract' includes any contract, lease, or
other agreement entered into under the authority of this
subchapter.
``(5) The term `Fund' means the Department of Defense
Family Housing Improvement Fund or the Department of Defense
Military Unaccompanied Housing Improvement Fund established
under section 2883(a) of this title.

[[Page H456]]

``(6) The term `military unaccompanied housing' means
military housing intended to be occupied by members of the
armed forces serving a tour of duty unaccompanied by
dependents.
``(7) The term `United States' includes the Commonwealth of
Puerto Rico.

``Sec. 2872. General authority

``In addition to any other authority provided under this
chapter for the acquisition or construction of military
family housing or military unaccompanied housing, the
Secretary concerned may exercise any authority or any
combination of authorities provided under this subchapter in
order to provide for the acquisition or construction by
private persons of the following:
``(1) Family housing units on or near military
installations within the United States and its territories
and possessions.
``(2) Military unaccompanied housing units on or near such
military installations.

``Sec. 2873. Direct loans and loan guarantees

``(a) Direct Loans.--(1) Subject to subsection (c), the
Secretary concerned may make direct loans to persons in the
private sector in order to provide funds to such persons for
the acquisition or construction of housing units that the
Secretary determines are suitable for use as military family
housing or as military unaccompanied housing.
``(2) The Secretary concerned shall establish such terms
and conditions with respect to loans made under this
subsection as the Secretary considers appropriate to protect
the interests of the United States, including the period and
frequency for repayment of such loans and the obligations of
the obligors on such loans upon default.
``(b) Loan Guarantees.--(1) Subject to subsection (c), the
Secretary concerned may guarantee a loan made to any person
in the private sector if the proceeds of the loan are to be
used by the person to acquire, or construct housing units
that the Secretary determines are suitable for use as
military family housing or as military unaccompanied housing.
``(2) The amount of a guarantee on a loan that may be
provided under paragraph (1) may not exceed the amount equal
to the lesser of--
``(A) the amount equal to 80 percent of the value of the
project; or
``(B) the amount of the outstanding principal of the loan.
``(3) The Secretary concerned shall establish such terms
and conditions with respect to guarantees of loans under this
subsection as the Secretary considers appropriate to protect
the interests of the United States, including the rights and
obligations of obligors of such loans and the rights and
obligations of the United States with respect to such
guarantees.
``(c) Limitation on Direct Loan and Guarantee Authority.--
Direct loans and loan guarantees may be made under this
section only to the extent that appropriations of budget
authority to cover their cost (as defined in section 502(5)
of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)))
are made in advance, or authority is otherwise provided in
appropriation Acts. If such appropriation or other authority
is provided, there may be established a financing account (as
defined in section 502(7) of such Act (2 U.S.C. 661a(7))),
which shall be available for the disbursement of direct
loans or payment of claims for payment on loan guarantees
under this section and for all other cash flows to and
from the Government as a result of direct loans and
guarantees made under this section.

``Sec. 2874. Leasing of housing to be constructed

``(a) Build and Lease Authorized.--The Secretary concerned
may enter into contracts for the lease of military family
housing units or military unaccompanied housing units to be
constructed under this subchapter.
``(b) Lease Terms.--A contract under this section may be
for any period that the Secretary concerned determines
appropriate and may provide for the owner of the leased
property to operate and maintain the property.

``Sec. 2875. Investments in nongovernmental entities

``(a) Investments Authorized.--The Secretary concerned may
make investments in nongovernmental entities carrying out
projects for the acquisition or construction of housing units
suitable for use as military family housing or as military
unaccompanied housing.
``(b) Forms of Investment.--An investment under this
section may take the form of an acquisition of a limited
partnership interest by the United States, a purchase of
stock or other equity instruments by the United States, a
purchase of bonds or other debt instruments by the United
States, or any combination of such forms of investment.
``(c) Limitation on Value of Investment.--(1) The cash
amount of an investment under this section in a
nongovernmental entity may not exceed an amount equal to
33\1/3\ percent of the capital cost (as determined by the
Secretary concerned) of the project or projects that the
entity proposes to carry out under this section with the
investment.
``(2) If the Secretary concerned conveys land or facilities
to a nongovernmental entity as all or part of an investment
in the entity under this section, the total value of the
investment by the Secretary under this section may not exceed
an amount equal to 45 percent of the capital cost (as
determined by the Secretary) of the project or projects that
the entity proposes to carry out under this section with the
investment.
``(3) In this subsection, the term `capital cost', with
respect to a project for the acquisition or construction of
housing, means the total amount of the costs included in the
basis of the housing for Federal income tax purposes.
``(d) Collateral Incentive Agreements.--The Secretary
concerned shall enter into collateral incentive agreements
with nongovernmental entities in which the Secretary makes an
investment under this section to ensure that a suitable
preference will be afforded members of the armed forces and
their dependents in the lease or purchase, as the case may
be, of a reasonable number of the housing units covered by
the investment.

``Sec. 2876. Rental guarantees

``The Secretary concerned may enter into agreements with
private persons that acquire or construct military family
housing units or military unaccompanied housing units under
this subchapter in order to assure--
``(1) the occupancy of such units at levels specified in
the agreements; or
``(2) rental income derived from rental of such units at
levels specified in the agreements.

``Sec. 2877. Differential lease payments

``Pursuant to an agreement entered into by the Secretary
concerned and a private lessor of military family housing or
military unaccompanied housing to members of the armed
forces, the Secretary may pay the lessor an amount in
addition to the rental payments for the housing made by the
members as the Secretary determines appropriate to encourage
the lessor to make the housing available to members of the
armed forces as military family housing or as military
unaccompanied housing.

``Sec. 2878. Conveyance or lease of existing property and
facilities

``(a) Conveyance or Lease Authorized.--The Secretary
concerned may convey or lease property or facilities
(including ancillary supporting facilities) to private
persons for purposes of using the proceeds of such conveyance
or lease to carry out activities under this subchapter.
``(b) Inapplicability to Property at Installation Approved
for Closure.--The authority of this section does not apply to
property or facilities located on or near a military
installation approved for closure under a base closure law.
``(c) Terms and Conditions.--(1) The conveyance or lease of
property or facilities under this section shall be for such
consideration and upon such terms and conditions as the
Secretary concerned considers appropriate for the purposes of
this subchapter and to protect the interests of the United
States.
``(2) As part or all of the consideration for a conveyance
or lease under this section, the purchaser or lessor (as the
case may be) shall enter into an agreement with the Secretary
to ensure that a suitable preference will be afforded members
of the armed forces and their dependents in the lease or
sublease of a reasonable number of the housing units covered
by the conveyance or lease, as the case may be, or in the
lease of other suitable housing units made available by the
purchaser or lessee.
``(d) Inapplicability of Certain Property Management
Laws.--The conveyance or lease of property or facilities
under this section shall not be subject to the following
provisions of law:
``(1) Section 2667 of this title.
``(2) The Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 471 et seq.).
``(3) Section 321 of the Act of June 30, 1932 (commonly
known as the Economy Act) (40 U.S.C. 303b).
``(4) Section 501 of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11401).

``Sec. 2879. Interim leases

``Pending completion of a project to acquire or construct
military family housing units or military unaccompanied
housing units under this subchapter, the Secretary concerned
may provide for the interim lease of such units of the
project as are complete. The term of a lease under this
section may not extend beyond the date of the completion of
the project concerned.

``Sec. 2880. Unit size and type

``(a) Conformity With Similar Housing Units in Locale.--The
Secretary concerned shall ensure that the room patterns and
floor areas of military family housing units and military
unaccompanied housing units acquired or constructed under
this subchapter are generally comparable to the room patterns
and floor areas of similar housing units in the locality
concerned.
``(b) Inapplicability of Limitations on Space by Pay
Grade.--(1) Section 2826 of this title shall not apply to
military family housing units acquired or constructed under
this subchapter.
``(2) The regulations prescribed under section 2856 of this
title shall not apply to any military unaccompanied housing
unit acquired or constructed under this subchapter unless the
unit is located on a military installation.

``Sec. 2881. Ancillary supporting facilities

``Any project for the acquisition or construction of
military family housing units or military unaccompanied
housing units under this subchapter may include the
acquisition

[[Page H457]]
or construction of ancillary supporting facilities for the housing
units concerned.

``Sec. 2882. Assignment of members of the armed forces to
housing units

``(a) In General.--The Secretary concerned may assign
members of the armed forces to housing units acquired or
constructed under this subchapter.
``(b) Effect of Certain Assignments on Entitlement to
Housing Allowances.--(1) Except as provided in paragraph (2),
housing referred to in subsection (a) shall be considered as
quarters of the United States or a housing facility under the
jurisdiction of a uniformed service for purposes of section
403(b) of title 37.
``(2) A member of the armed forces who is assigned in
accordance with subsection (a) to a housing unit not owned or
leased by the United States shall be entitled to a basic
allowance for quarters under section 403 of title 37 and, if
in a high housing cost area, a variable housing allowance
under section 403a of that title.
``(c) Lease Payments Through Pay Allotments.--The Secretary
concerned may require members of the armed forces who lease
housing in housing units acquired or constructed under this
subchapter to make lease payments for such housing pursuant
to allotments of the pay of such members under section 701 of
title 37.

``Sec. 2883. Department of Defense Housing Funds

``(a) Establishment.--There are hereby established on the
books of the Treasury the following accounts:
``(1) The Department of Defense Family Housing Improvement
Fund.
``(2) The Department of Defense Military Unaccompanied
Housing Improvement Fund.
``(b) Commingling of Funds Prohibited.--(1) The Secretary
of Defense shall administer each Fund separately.
``(2) Amounts in the Department of Defense Family Housing
Improvement Fund may be used only to carry out activities
under this subchapter with respect to military family
housing.
``(3) Amounts in the Department of Defense Military
Unaccompanied Housing Improvement Fund may be used only to
carry out activities under this subchapter with respect to
military unaccompanied housing.
``(c) Credits to Funds.--(1) There shall be credited to the
Department of Defense Family Housing Improvement Fund the
following:
``(A) Amounts authorized for and appropriated to that Fund.
``(B) Subject to subsection (f), any amounts that the
Secretary of Defense transfers, in such amounts as provided
in appropriation Acts, to that Fund from amounts authorized
and appropriated to the Department of Defense for the
acquisition or construction of military family housing.
``(C) Proceeds from the conveyance or lease of property or
facilities under section 2878 of this title for the purpose
of carrying out activities under this subchapter with respect
to military family housing.
``(D) Income derived from any activities under this
subchapter with respect to military family housing, including
interest on loans made under section 2873 of this title,
income and gains realized from investments under section 2875
of this title, and any return of capital invested as part of
such investments.
``(2) There shall be credited to the Department of Defense
Military Unaccompanied Housing Improvement Fund the
following:
``(A) Amounts authorized for and appropriated to that Fund.
``(B) Subject to subsection (f), any amounts that the
Secretary of Defense transfers, in such amounts as provided
in appropriation Acts, to that Fund from amounts authorized
and appropriated to the Department of Defense for the
acquisition or construction of military unaccompanied
housing.
``(C) Proceeds from the conveyance or lease of property or
facilities under section 2878 of this title for the purpose
of carrying out activities under this subchapter with respect
to military unaccompanied housing.
``(D) Income derived from any activities under this
subchapter with respect to military unaccompanied housing,
including interest on loans made under section 2873 of this
title, income and gains realized from investments under
section 2875 of this title, and any return of capital
invested as part of such investments.
``(d) Use of Amounts in Funds.--(1) In such amounts as
provided in appropriation Acts and except as provided in
subsection (e), the Secretary of Defense may use amounts in
the Department of Defense Family Housing Improvement Fund to
carry out activities under this subchapter with respect to
military family housing, including activities required in
connection with the planning, execution, and administration
of contracts entered into under the authority of this
subchapter.
``(2) In such amounts as provided in appropriation Acts and
except as provided in subsection (e), the Secretary of
Defense may use amounts in the Department of Defense Military
Unaccompanied Housing Improvement Fund to carry out
activities under this subchapter with respect to military
unaccompanied housing, including activities required in
connection with the planning, execution, and administration
of contracts entered into under the authority of this
subchapter.
``(3) Amounts made available under this subsection shall
remain available until expended. The Secretary of Defense may
transfer amounts made available under this subsection to the
Secretaries of the military departments to permit such
Secretaries to carry out the activities for which such
amounts may be used.
``(e) Limitation on Obligations.--The Secretary may not
incur an obligation under a contract or other agreement
entered into under this subchapter in excess of the
unobligated balance, at the time the contract is entered
into, of the Fund required to be used to satisfy the
obligation.
``(f) Notification Required for Transfers.--A transfer of
appropriated amounts to a Fund under paragraph (1)(B) or
(2)(B) of subsection (c) may be made only after the end of
the 30-day period beginning on the date the Secretary of
Defense submits written notice of, and justification for, the
transfer to the appropriate committees of Congress.
``(g) Limitation on Amount of Budget Authority.--The total
value in budget authority of all contracts and investments
undertaken using the authorities provided in this subchapter
shall not exceed--
``(1) $850,000,000 for the acquisition or construction of
military family housing; and
``(2) $150,000,000 for the acquisition or construction of
military unaccompanied housing.

``Sec. 2884. Reports

``(a) Project Reports.--(1) The Secretary of Defense shall
transmit to the appropriate committees of Congress a report
describing--
``(A) each contract for the acquisition or construction of
family housing units or unaccompanied housing units that the
Secretary proposes to solicit under this subchapter; and
``(B) each conveyance or lease proposed under section 2878
of this title.
``(2) The report shall describe the proposed contract,
conveyance, or lease and the intended method of participation
of the United States in the contract, conveyance, or lease
and provide a justification of such method of participation.
The report shall be submitted not later than 30 days before
the date on which the Secretary issues the contract
solicitation or offers the conveyance or lease.
``(b) Annual Reports.--The Secretary of Defense shall
include each year in the materials that the Secretary submits
to Congress in support of the budget submitted by the
President pursuant to section 1105 of title 31 the following:
``(1) A report on the expenditures and receipts during the
preceding fiscal year covering the Funds established under
section 2883 of this title.
``(2) A methodology for evaluating the extent and
effectiveness of the use of the authorities under this
subchapter during such preceding fiscal year.
``(3) A description of the objectives of the Department of
Defense for providing military family housing and military
unaccompanied housing for members of the armed forces.

``Sec. 2885. Expiration of authority

``The authority to enter into a contract under this
subchapter shall expire five years after the date of the
enactment of the National Defense Authorization Act for
Fiscal Year 1996.''.
(2) The table of subchapters at the beginning of such
chapter is amended by inserting after the item relating to
subchapter III the following new item:

``IV. Alternative Authority for Acquisition and Improvement of Military
Housing.......................................................2871''.

(b) Final Report.--Not later than March 1, 2000, the
Secretary of Defense shall submit to the congressional
defense committees a report on the use by the Secretary of
Defense and the Secretaries of the military departments of
the authorities provided by subchapter IV of chapter 169 of
title 10, United States Code, as added by subsection (a). The
report shall assess the effectiveness of such authority in
providing for the construction and improvement of military
family housing and military unaccompanied housing.

SEC. 2802. EXPANSION OF AUTHORITY FOR LIMITED PARTNERSHIPS
FOR DEVELOPMENT OF MILITARY FAMILY HOUSING.

(a) Participation of Other Military Departments.--(1)
Subsection (a)(1) of section 2837 of title 10, United States
Code, is amended by striking out ``of the naval service'' and
inserting in lieu thereof ``of the armed forces''.
(2) Subsection (b)(1) of such section is amended by
striking out ``of the naval service'' and inserting in lieu
thereof ``of the armed forces''.
(b) Administration.--(1) Subsection (a)(1) of such section
is further amended by striking out ``the Secretary of the
Navy'' in the first sentence and inserting in lieu thereof
``the Secretary of a military department''.
(2) Subsections (a)(2), (b), (c), (g), and (h) of such
section are amended by striking out ``Secretary'' each place
it appears and inserting in lieu thereof ``Secretary
concerned''.
(c) Account.--Subsection (d) of such section is amended to
read as follows:
``(d) Account.--(1) There is hereby established on the
books of the Treasury an account to be known as the `Defense
Housing Investment Account'.
``(2) There shall be deposited into the Account--
``(A) such funds as may be authorized for and appropriated
to the Account;
``(B) any proceeds received by the Secretary concerned from
the repayment of investments or profits on investments of the
Secretary under subsection (a); and

[[Page H458]]

``(C) any unobligated balances which remain in the Navy
Housing Investment Account as of the date of the enactment of
the National Defense Authorization Act for Fiscal Year 1996.
``(3) From such amounts as are provided in advance in
appropriation Acts, funds in the Account shall be available
to the Secretaries concerned in amounts determined by the
Secretary of Defense for contracts, investments, and expenses
necessary for the implementation of this section.
``(4) The Secretary concerned may not enter into a contract
in connection with a limited partnership under subsection (a)
or a collateral incentive agreement under subsection (b)
unless a sufficient amount of the unobligated balance of the
funds in the Account is available to the Secretary, as of the
time the contract is entered into, to satisfy the total
obligations to be incurred by the United States under the
contract.''.
(d) Termination of Navy Housing Investment Board.--Such
section is further amended--
(1) by striking out subsection (e); and
(2) in subsection (h)--
(A) by striking out ``Authorities'' in the subsection
heading and inserting in lieu thereof ``Authority'';
(B) by striking out ``(1)''; and
(C) by striking out paragraph (2).
(e) Report.--Subsection (f) of such section is amended--
(1) by striking out ``the Secretary carries out
activities'' and inserting in lieu thereof ``activities are
carried out''; and
(2) by striking out ``the Secretary shall'' and inserting
in lieu thereof ``the Secretaries concerned shall jointly''.
(f) Extension of Authority.--Subsection (h) of such section
is further amended by striking out ``September 30, 1999'' and
inserting in lieu thereof ``September 30, 2000''.
(g) Conforming Amendment.--Subsection (g) of such section
is further amended by striking out ``Navy'' in the subsection
heading.
Subtitle B--Other Military Construction Program and Military Family
Housing Changes

SEC. 2811. SPECIAL THRESHOLD FOR UNSPECIFIED MINOR
CONSTRUCTION PROJECTS TO CORRECT LIFE, HEALTH,
OR SAFETY DEFICIENCIES.

(a) Special Threshold.--Section 2805 of title 10, United
States Code, is amended--
(1) in subsection (a)(1), by adding at the end the
following new sentence: ``However, if the military
construction project is intended solely to correct a
deficiency that is life-threatening, health-threatening, or
safety-threatening, a minor military construction project may
have an approved cost equal to or less than $3,000,000.'';
and
(2) in subsection (c)(1), by striking out ``not more than
$300,000.'' and inserting in lieu thereof ``not more than--
``(A) $1,000,000, in the case of an unspecified military
construction project intended solely to correct a deficiency
that is life-threatening, health-threatening, or safety-
threatening; or
``(B) $300,000, in the case of any other unspecified
military construction project.''.
(b) Technical Amendment.--Section 2861(b)(6) of such title
is amended by striking out ``section 2805(a)(2)'' and
inserting in lieu thereof ``section 2805(a)(1)''.

SEC. 2812. CLARIFICATION OF SCOPE OF UNSPECIFIED MINOR
CONSTRUCTION AUTHORITY.

Section 2805(a)(1) of title 10, United States Code, as
amended by section 2811 of this Act, is further amended by
striking out ``(1) that is for a single undertaking at a
military installation, and (2)'' in the second sentence.

SEC. 2813. TEMPORARY AUTHORITY TO WAIVE NET FLOOR AREA
LIMITATION FOR FAMILY HOUSING ACQUIRED IN LIEU
OF CONSTRUCTION.

Section 2824(c) of title 10, United States Code, is amended
by adding at the end the following new sentence: ``The
Secretary concerned may waive the limitation set forth in the
preceding sentence to family housing units acquired under
this section during the five-year period beginning on the
date of the enactment of the National Defense Authorization
Act for Fiscal Year 1996.''.

SEC. 2814. REESTABLISHMENT OF AUTHORITY TO WAIVE NET FLOOR
AREA LIMITATION ON ACQUISITION BY PURCHASE OF
CERTAIN MILITARY FAMILY HOUSING.

Section 2826(e) of title 10, United States Code, is amended
by striking out the second sentence.

SEC. 2815. TEMPORARY AUTHORITY TO WAIVE LIMITATIONS ON SPACE
BY PAY GRADE FOR MILITARY FAMILY HOUSING UNITS.

Section 2826 of title 10, United States Code, is amended by
adding at the end the following new subsection:
``(i)(1) The Secretary concerned may waive the provisions
of subsection (a) with respect to military family housing
units constructed, acquired, or improved during the five-year
period beginning on the date of the enactment of the National
Defense Authorization Act for Fiscal Year 1996.
``(2) The total number of military family housing units
constructed, acquired, or improved during any fiscal year in
the period referred to in paragraph (1) shall be the total
number of such units authorized by law for that fiscal
year.''.

SEC. 2816. RENTAL OF FAMILY HOUSING IN FOREIGN COUNTRIES.

Section 2828(e) of title 10, United States Code, is
amended--
(1) in paragraph (1)--
(A) by striking out ``300 units'' in the first sentence and
inserting in lieu thereof ``450 units''; and
(B) by striking out ``220 such units'' in the second
sentence and inserting in lieu thereof ``350 such units'';
and
(2) in paragraph (2), by striking out ``300 units'' and
inserting in lieu thereof ``450 units''.

SEC. 2817. CLARIFICATION OF SCOPE OF REPORT REQUIREMENT ON
COST INCREASES UNDER CONTRACTS FOR MILITARY
FAMILY HOUSING CONSTRUCTION.

Subsection (d) of section 2853 of title 10, United States
Code, is amended to read as follows:
``(d) The limitation on cost increases in subsection (a)
does not apply to the settlement of a contractor claim under
a contract.''.

SEC. 2818. AUTHORITY TO CONVEY DAMAGED OR DETERIORATED
MILITARY FAMILY HOUSING.

(a) Authority.--(1) Subchapter III of chapter 169 of title
10, United States Code, is amended by inserting after section
2854 the following new section:

``Sec. 2854a. Conveyance of damaged or deteriorated military
family housing; use of proceeds

``(a) Authority To Convey.--(1) The Secretary concerned may
convey any family housing facility that, due to damage or
deterioration, is in a condition that is uneconomical to
repair. Any conveyance of a family housing facility under
this section may include a conveyance of the real property
associated with the facility conveyed.
``(2) The authority of this section does not apply to
family housing facilities located at military installations
approved for closure under a base closure law or family
housing facilities located at an installation outside the
United States at which the Secretary of Defense terminates
operations.
``(3) The aggregate total value of the family housing
facilities conveyed by the Department of Defense under the
authority in this subsection in any fiscal year may not
exceed $5,000,000.
``(4) For purposes of this subsection, a family housing
facility is in a condition that is uneconomical to repair if
the cost of the necessary repairs for the facility would
exceed the amount equal to 70 percent of the cost of
constructing a family housing facility to replace such
facility.
``(b) Consideration.--(1) As consideration for the
conveyance of a family housing facility under subsection (a),
the person to whom the facility is conveyed shall pay the
United States an amount equal to the fair market value of the
facility conveyed, including any real property conveyed along
with the facility.
``(2) The Secretary concerned shall determine the fair
market value of any family housing facility and associated
real property that is conveyed under subsection (a). Such
determination shall be final.
``(c) Notice and Wait Requirements.--The Secretary
concerned may not enter into an agreement to convey a family
housing facility under this section until--
``(1) the Secretary submits to the appropriate committees
of Congress, in writing, a justification for the conveyance
under the agreement, including--
``(A) an estimate of the consideration to be provided the
United States under the agreement;
``(B) an estimate of the cost of repairing the family
housing facility to be conveyed; and
``(C) an estimate of the cost of replacing the family
housing facility to be conveyed; and
``(2) a period of 21 calendar days has elapsed after the
date on which the justification is received by the
committees.
``(d) Inapplicability of Certain Property Disposal Laws.--
The following provisions of law do not apply to the
conveyance of a family housing facility under this section:
``(1) The Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 471 et seq.).
``(2) Title V of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11411 et seq.).
``(e) Use of Proceeds.--(1) The proceeds of any conveyance
of a family housing facility under this section shall be
credited to the appropriate fund established under section
2883 of this title and shall be available--
``(A) to construct family housing units to replace the
family housing facility conveyed under this section, but only
to the extent that the number of units constructed with such
proceeds does not exceed the number of units of military
family housing of the facility conveyed;
``(B) to repair or restore existing military family
housing; and
``(C) to reimburse the Secretary concerned for the costs
incurred by the Secretary in conveying the family housing
facility.
``(2) Notwithstanding section 2883(d) of this title,
proceeds derived from a conveyance of a family housing
facility under this section shall be available under
paragraph (1) without any further appropriation.
``(f) Description of Property.--The exact acreage and legal
description of any family housing facility conveyed under
this section, including any real property associated with
such facility, shall be determined by such means as the
Secretary concerned considers satisfactory, including by
survey in the case of real property.

[[Page H459]]

``(g) Additional Terms and Conditions.--The Secretary
concerned may require such additional terms and conditions in
connection with the conveyance of family housing facilities
under this section as the Secretary considers appropriate to
protect the interests of the United States.''.
(2) The table of sections at the beginning of such
subchapter is amended by inserting after the item relating to
section 2854 the following new item:
``2854a. Conveyance of damaged or deteriorated military family housing;
use of proceeds.''.

(b) Conforming Amendment.--Section 204(h) of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C.
485(h)) is amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following new
paragraph (4):
``(4) This subsection does not apply to damaged or
deteriorated military family housing facilities conveyed
under section 2854a of title 10, United States Code.''.

SEC. 2819. ENERGY AND WATER CONSERVATION SAVINGS FOR THE
DEPARTMENT OF DEFENSE.

(a) Inclusion of Water Efficient Maintenance in Energy
Performance Plan.--Paragraph (3) of section 2865(a) of title
10, United States Code, is amended by striking out ``energy
efficient maintenance'' and inserting in lieu thereof
``energy efficient maintenance or water efficient
maintenance''.
(b) Scope of Term.--Paragraph (4) of such section is
amended--
(1) in the matter preceding subparagraph (A), by striking
out `` `energy efficient maintenance' '' and inserting in
lieu thereof `` `energy efficient maintenance or water
efficient maintenance' '';
(2) in subparagraph (A), by striking out ``systems or
industrial processes,'' in the matter preceding clause (i)
and inserting in lieu thereof ``systems, industrial
processes, or water efficiency applications,''; and
(3) in subparagraph (B), by inserting ``or water cost
savings'' before the period at the end.

SEC. 2820. EXTENSION OF AUTHORITY TO ENTER INTO LEASES OF
LAND FOR SPECIAL OPERATIONS ACTIVITIES.

(a) Extension of Authority.--Subsection (d) of section 2680
of title 10, United States Code, is amended in the first
sentence by striking out ``September 30, 1995'' and inserting
in lieu thereof ``September 30, 2000''.
(b) Reporting Requirement.--Such section is further amended
by adding at the end the following new subsection:
``(e) Reports.--Not later than March 1 of each year, the
Secretary of Defense shall submit to the Committee on the
Armed Services of the Senate and the Committee on National
Security of the House of Representatives a report that--
``(1) identifies each leasehold interest acquired during
the previous fiscal year under subsection (a); and
``(2) contains a discussion of each project for the
construction or modification of facilities carried out
pursuant to subsection (c) during such fiscal year.''.
(c) Conforming Repeal.--Section 2863 of the National
Defense Authorization Act for Fiscal Years 1992 and 1993
(Public Law 102-190; 10 U.S.C. 2680 note) is amended by
striking out subsection (b).

SEC. 2821. DISPOSITION OF AMOUNTS RECOVERED AS A RESULT OF
DAMAGE TO REAL PROPERTY.

(a) In General.--Chapter 165 of title 10, United States
Code, is amended by inserting after section 2781 the
following new section:

``Sec. 2782. Damage to real property: disposition of amounts
recovered

``Except as provided in section 2775 of this title, amounts
recovered for damage caused to real property under the
jurisdiction of the Secretary of a military department or,
with respect to the Defense Agencies, under the jurisdiction
of the Secretary of Defense shall be credited to the account
available for the repair or replacement of the real property
at the time of recovery. In such amounts as are provided in
advance in appropriation Acts, amounts so credited shall be
available for use for the same purposes and under the same
circumstances as other funds in the account.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 2781 the following new item:

``2782. Damage to real property: disposition of amounts recovered.''.

SEC. 2822. PILOT PROGRAM TO PROVIDE INTEREST RATE BUY DOWN
AUTHORITY ON LOANS FOR HOUSING WITHIN HOUSING
SHORTAGE AREAS AT MILITARY INSTALLATIONS.

(a) Short Title.--This section may be cited as the
``Military Housing Assistance Act of 1995''.
(b) Mortgage Assistance Payment Authority of the Secretary
of Veterans Affairs.--(1) Chapter 37 of title 38, United
States Code, is amended by inserting after section 3707 the
following:

``Sec. 3708. Authority to buy down interest rates: pilot
program

``(a) In order to enable the purchase of housing in areas
where the supply of suitable military housing is inadequate,
the Secretary may conduct a pilot program under which the
Secretary may make periodic or lump sum assistance payments
on behalf of an eligible veteran for the purpose of buying
down the interest rate on a loan to that veteran that is
guaranteed under this chapter for a purpose described in
paragraph (1), (6), or (10) of section 3710(a) of this title.
``(b) An individual is an eligible veteran for the purposes
of this section if--
``(1) the individual is a veteran, as defined in section
3701(b)(4) of this title;
``(2) the individual submits an application for a loan
guaranteed under this chapter within one year of an
assignment of the individual to duty at a military
installation in the United States designated by the Secretary
of Defense as a housing shortage area;
``(3) at the time the loan referred to in subsection (a) is
made, the individual is an enlisted member, warrant officer,
or an officer (other than a warrant officer) at a pay grade
of O-3 or below;
``(4) the individual has not previously used any of the
individual's entitlement to housing loan benefits under this
chapter; and
``(5) the individual receives comprehensive prepurchase
counseling from the Secretary (or the designee of the
Secretary) before making application for a loan guaranteed
under this chapter.
``(c) Loans with respect to which the Secretary may
exercise the buy down authority under subsection (a) shall--
``(1) provide for a buy down period of not more than three
years in duration;
``(2) specify the maximum and likely amounts of increases
in mortgage payments that the loans would require; and
``(3) be subject to such other terms and conditions as the
Secretary may prescribe by regulation.
``(d) The Secretary shall promulgate underwriting standards
for loans for which the interest rate assistance payments may
be made under subsection (a). Such standards shall be based
on the interest rate for the second year of the loan.
``(e) The Secretary or lender shall provide comprehensive
prepurchase counseling to eligible veterans explaining the
features of interest rate buy downs under subsection (a),
including a hypothetical payment schedule that displays the
increases in monthly payments to the mortgagor over the first
five years of the mortgage term. For the purposes of this
subsection, the Secretary may assign personnel to military
installations referred to in subsection (b)(2).
``(f) There is authorized to be appropriated $3,000,000
annually to carry out this section.
``(g) The Secretary may not guarantee a loan under this
chapter after September 30, 1998, on which the Secretary is
obligated to make payments under this section.''.
(2) The table of sections at the beginning of chapter 37 of
title 38, United States Code, is amended by inserting after
the item relating to section 3707 to following new item:

``3708. Authority to buy down interest rates: pilot program.''.

(c) Authority of Secretary of Defense.--
(1) Reimbursement for buy down costs.--The Secretary of
Defense shall reimburse the Secretary of Veterans Affairs for
amounts paid by the Secretary of Veterans Affairs to
mortgagees under section 3708 of title 38, United States
Code, as added by subsection (b).
(2) Designation of housing shortage areas.--For purposes of
section 3708 of title 38, United States Code, the Secretary
of Defense may designate as a housing shortage area a
military installation in the United States at which the
Secretary determines there is a shortage of suitable housing
to meet the military family needs of members of the Armed
Forces and the dependents of such members.
(3) Report.--Not later than March 30, 1998, the Secretary
shall submit to Congress a report regarding the effectiveness
of the authority provided in section 3708 of title 38, United
States Code, in ensuring that members of the Armed Forces and
their dependents have access to suitable housing. The report
shall include the recommendations of the Secretary regarding
whether the authority provided in this subsection should be
extended beyond the date specified in paragraph (5).
(4) Earmark.--Of the amount provided in section
2405(a)(11)(B), $10,000,000 for fiscal year 1996 shall be
available to carry out this subsection.
(5) Sunset.--This subsection shall not apply with respect
to housing loans guaranteed after September 30, 1998, for
which assistance payments are paid under section 3708 of
title 38, United States Code.
Subtitle C--Defense Base Closure and Realignment

SEC. 2831. DEPOSIT OF PROCEEDS FROM LEASES OF PROPERTY
LOCATED AT INSTALLATIONS BEING CLOSED OR
REALIGNED.

(a) Exception to Existing Requirements.--Section 2667(d) of
title 10, United States Code, is amended--
(1) in paragraph (1)(A)(ii), by inserting ``or (5)'' after
``paragraph (4)''; and
(2) by adding at the end the following new paragraph:
``(5) Money rentals received by the United States from a
lease under subsection (f) shall be deposited into the
account established under section 2906(a) of the Defense Base
Closure and Realignment Act of 1990 (part A of title XXIX of
Public Law 101-510; 10 U.S.C. 2687 note).''.
(b) Corresponding Amendments to Base Closure Laws.--(1)
Section 207(a)(7) of the Defense Authorization Amendments and
Base Closure and Realignment Act (Public Law 100-526; 10
U.S.C. 2687 note) is amended

[[Page H460]]
by striking out ``transfer or disposal'' and inserting in lieu thereof
``lease, transfer, or disposal''.
(2) Section 2906(a)(2) of the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2867 note) is amended--
(A) in subparagraph (C), by striking out ``transfer or
disposal'' and inserting in lieu thereof ``lease, transfer,
or disposal''; and
(B) in subparagraph (D), by striking out ``transfer or
disposal'' and inserting in lieu thereof ``lease, transfer,
or disposal''.

SEC. 2832. IN-KIND CONSIDERATION FOR LEASES AT INSTALLATIONS
TO BE CLOSED OR REALIGNED.

Section 2667(f) of title 10, United States Code, is amended
by adding at the end the following new paragraph:
``(4) The Secretary concerned may accept under subsection
(b)(5) services of a lessee for an entire installation to be
closed or realigned under a base closure law, or for any part
of such installation, without regard to the requirement in
subsection (b)(5) that a substantial part of the installation
be leased.''.

SEC. 2833. INTERIM LEASES OF PROPERTY APPROVED FOR CLOSURE OR
REALIGNMENT.

Section 2667(f) of title 10, United States Code, is amended
by adding after paragraph (4), as added by section 2832 of
this Act, the following new paragraph:
``(5)(A) Notwithstanding the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.), the scope of any
environmental impact analysis necessary to support an interim
lease of property under this subsection shall be limited to
the environmental consequences of activities authorized under
the proposed lease and the cumulative impacts of other past,
present, and reasonably foreseeable future actions during the
period of the proposed lease.
``(B) Interim leases entered into under this subsection
shall be deemed not to prejudice the final disposal decision
with respect to the property, even if final disposal of the
property is delayed until completion of the term of the
interim lease. An interim lease under this subsection shall
not be entered into without prior consultation with the
redevelopment authority concerned.
``(C) Subparagraphs (A) and (B) shall not apply to an
interim lease under this subsection if authorized activities
under the lease would--
``(i) significantly affect the quality of the human
environment; or
``(ii) irreversibly alter the environment in a way that
would preclude any reasonable disposal alternative of the
property concerned.''.

SEC. 2834. AUTHORITY TO LEASE PROPERTY REQUIRING
ENVIRONMENTAL REMEDIATION AT INSTALLATIONS
APPROVED FOR CLOSURE OR REALIGNMENT.

Section 120(h)(3) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42
U.S.C. 9620(h)(3)) is amended in the matter following
subparagraph (C)--
(1) by striking out the first sentence; and
(2) by adding at the end, flush to the paragraph margin,
the following:
``The requirements of subparagraph (B) shall not apply in any
case in which the person or entity to whom the real property
is transferred is a potentially responsible party with
respect to such property. The requirements of subparagraph
(B) shall not apply in any case in which the transfer of the
property occurs or has occurred by means of a lease, without
regard to whether the lessee has agreed to purchase the
property or whether the duration of the lease is longer than
55 years. In the case of a lease entered into after September
30, 1995, with respect to real property located at an
installation approved for closure or realignment under a base
closure law, the agency leasing the property, in consultation
with the Administrator, shall determine before leasing the
property that the property is suitable for lease, that the
uses contemplated for the lease are consistent with
protection of human health and the environment, and that
there are adequate assurances that the United States will
take all remedial action referred to in subparagraph (B) that
has not been taken on the date of the lease.''.

SEC. 2835. FINAL FUNDING FOR DEFENSE BASE CLOSURE AND
REALIGNMENT COMMISSION.

Section 2902(k) of the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101-510; 10
U.S.C. 2687 note) is amended by adding at the end the
following new paragraph:
``(3)(A) The Secretary may transfer not more than $300,000
from unobligated funds in the account referred to in
subparagraph (B) for the purpose of assisting the Commission
in carrying out its duties under this part during October,
November, and December 1995. Funds transferred under the
preceding sentence shall remain available until December 31,
1995.
``(B) The account referred to in subparagraph (A) is the
Department of Defense Base Closure Account established under
section 207(a) of the Defense Authorization Amendments and
Base Closure and Realignment Act (Public Law 100-526; 10
U.S.C. 2687 note).''.

SEC. 2836. EXERCISE OF AUTHORITY DELEGATED BY THE
ADMINISTRATOR OF GENERAL SERVICES.

Section 2905(b)(2) of the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note) is amended--
(1) in subparagraph (A)--
(A) by striking out ``Subject to subparagraph (C)'' in the
matter preceding clause (i) and inserting in lieu thereof
``Subject to subparagraph (B)''; and
(B) by striking out ``in effect on the date of the
enactment of this Act'' each place it appears in clauses (i)
and (ii);
(2) by striking out subparagraphs (B) and (C) and inserting
in lieu thereof the following new subparagraph (B):
``(B) The Secretary may, with the concurrence of the
Administrator of General Services--
``(i) prescribe general policies and methods for utilizing
excess property and disposing of surplus property pursuant to
the authority delegated under paragraph (1); and
``(ii) issue regulations relating to such policies and
methods, which shall supersede the regulations referred to in
subparagraph (A) with respect to that authority.''; and
(3) by redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively.

SEC. 2837. LEASE BACK OF PROPERTY DISPOSED FROM INSTALLATIONS
APPROVED FOR CLOSURE OR REALIGNMENT.

(a) Authority.--Section 2905(b)(4) of the Defense Base
Closure and Realignment Act of 1990 (part A of title XXIX of
Public Law 101-510; 10 U.S.C. 2687 note) is amended--
(1) by redesignating subparagraphs (C), (D), and (E) as
subparagraphs (D), (E), and (F), respectively; and
(2) by inserting after subparagraph (B) the following new
subparagraph (C):
``(C)(i) The Secretary may transfer real property at an
installation approved for closure or realignment under this
part (including property at an installation approved for
realignment which will be retained by the Department of
Defense or another Federal agency after realignment) to the
redevelopment authority for the installation if the
redevelopment authority agrees to lease, directly upon
transfer, one or more portions of the property transferred
under this subparagraph to the Secretary or to the head of
another department or agency of the Federal Government.
Subparagraph (B) shall apply to a transfer under this
subparagraph.
``(ii) A lease under clause (i) shall be for a term of not
to exceed 50 years, but may provide for options for renewal
or extension of the term by the department or agency
concerned.
``(iii) A lease under clause (i) may not require rental
payments by the United States.
``(iv) A lease under clause (i) shall include a provision
specifying that if the department or agency concerned ceases
requiring the use of the leased property before the
expiration of the term of the lease, the remainder of the
lease term may be satisfied by the same or another department
or agency of the Federal Government using the property for a
use similar to the use under the lease. Exercise of the
authority provided by this clause shall be made in
consultation with the redevelopment authority concerned.''.
(b) Use of Funds To Improve Leased Property.--
Notwithstanding any other provision of law, a department or
agency of the Federal Government that enters into a lease of
property under section 2905(b)(4)(C) of the Defense Base
Closure and Realignment Act of 1990 (part A of title XXIX of
Public Law 101-510; 10 U.S.C. 2687 note), as amended by
subsection (a), may improve the leased property using
funds appropriated or otherwise available to the
department or agency for such purpose.

SEC. 2838. IMPROVEMENT OF BASE CLOSURE AND REALIGNMENT
PROCESS REGARDING DISPOSAL OF PROPERTY.

(a) Applicability.--Subparagraph (A) of section 2905(b)(7)
of the Defense Base Closure and Realignment Act of 1990 (part
A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note)
is amended to read as follows:
``(A) The disposal of buildings and property located at
installations approved for closure or realignment under this
part after October 25, 1994, shall be carried out in
accordance with this paragraph rather than paragraph (6).''.
(b) Agreements Under Redevelopment Plans.--Subparagraph
(F)(ii)(I) of such section is amended in the second sentence
by striking out ``the approval of the redevelopment plan by
the Secretary of Housing and Urban Development under
subparagraph (H) or (J)'' and inserting in lieu thereof ``the
decision regarding the disposal of the buildings and property
covered by the agreements by the Secretary of Defense under
subparagraph (K) or (L)''.
(c) Revision of Redevelopment Plans.--Subparagraph (I) of
such section is amended--
(1) in clause (i)(II), by inserting ``the Secretary of
Defense and'' before ``the Secretary of Housing and Urban
Development''; and
(2) in clause (ii), by striking out ``the Secretary of
Housing and Urban Development'' and inserting in lieu thereof
``such Secretaries''.
(d) Disposal of Buildings and Property.--(1) Subparagraph
(K) of such section is amended to read as follows:
``(K)(i) Upon receipt of a notice under subparagraph
(H)(iv) or (J)(ii) of the determination of the Secretary of
Housing and Urban Development that a redevelopment plan for
an installation meets the requirements set forth in
subparagraph (H)(i), the Secretary of Defense shall dispose
of the buildings and property at the installation.
``(ii) For purposes of carrying out an environmental
assessment of the closure or realignment of an installation,
the Secretary

[[Page H461]]
of Defense shall treat the redevelopment plan for the installation
(including the aspects of the plan providing for disposal to
State or local governments, representatives of the homeless,
and other interested parties) as part of the proposed Federal
action for the installation.
``(iii) The Secretary of Defense shall dispose of buildings
and property under clause (i) in accordance with the record
of decision or other decision document prepared by the
Secretary in accordance with the National Environmental
Policy Act of 1969 (42 U.S.C. 4331 et seq.). In preparing the
record of decision or other decision document, the Secretary
shall give substantial deference to the redevelopment plan
concerned.
``(iv) The disposal under clause (i) of buildings and
property to assist the homeless shall be without
consideration.
``(v) In the case of a request for a conveyance under
clause (i) of buildings and property for public benefit under
section 203(k) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 484(k)) or sections 47151
through 47153 of title 49, United States Code, the sponsoring
Federal agency shall use the eligibility criteria set forth
in such section or such subchapter (as the case may be) to
determine the eligibility of the applicant and use proposed
in the request for the public benefit conveyance. The
determination of such eligibility should be made before
submission of the redevelopment plan concerned under
subparagraph (G).''.
(2) Subparagraph (L) of such section is amended by striking
out clauses (iii) and (iv) and inserting in lieu thereof the
following new clauses (iii) and (iv):
``(iii) Not later than 90 days after the date of the
receipt of a revised plan for an installation under
subparagraph (J), the Secretary of Housing and Urban
Development shall--
``(I) notify the Secretary of Defense and the redevelopment
authority concerned of the buildings and property at an
installation under clause (i)(IV) that the Secretary of
Housing and Urban Development determines are suitable for use
to assist the homeless; and
``(II) notify the Secretary of Defense of the extent to
which the revised plan meets the criteria set forth in
subparagraph (H)(i).
``(iv)(I) Upon notice from the Secretary of Housing and
Urban Development with respect to an installation under
clause (iii), the Secretary of Defense shall dispose of
buildings and property at the installation in consultation
with the Secretary of Housing and Urban Development and the
redevelopment authority concerned.
``(II) For purposes of carrying out an environmental
assessment of the closure or realignment of an installation,
the Secretary of Defense shall treat the redevelopment plan
submitted by the redevelopment authority for the installation
(including the aspects of the plan providing for disposal to
State or local governments, representatives of the homeless,
and other interested parties) as part of the proposed Federal
action for the installation. The Secretary of Defense shall
incorporate the notification of the Secretary of Housing and
Urban Development under clause (iii)(I) as part of the
proposed Federal action for the installation only to the
extent, if any, that the Secretary of Defense considers such
incorporation to be appropriate and consistent with the best
and highest use of the installation as a whole, taking into
consideration the redevelopment plan submitted by the
redevelopment authority.
``(III) The Secretary of Defense shall dispose of buildings
and property under subclause (I) in accordance with the
record of decision or other decision document prepared by the
Secretary in accordance with the National Environmental
Policy Act of 1969 (42 U.S.C. 4331 et seq.). In preparing the
record of decision or other decision document, the Secretary
shall give deference to the redevelopment plan submitted by
the redevelopment authority for the installation.
``(IV) The disposal under subclause (I) of buildings and
property to assist the homeless shall be without
consideration.
``(V) In the case of a request for a conveyance under
subclause (I) of buildings and property for public benefit
under section 203(k) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 484(k)) or
sections 47151 through 47153 of title 49, United States Code,
the sponsoring Federal agency shall use the eligibility
criteria set forth in such section or such subchapter (as the
case may be) to determine the eligibility of the applicant
and use proposed in the request for the public benefit
conveyance. The determination of such eligibility should be
made before submission of the redevelopment plan concerned
under subparagraph (G).''.
(e) Conforming Amendment.--Subparagraph (M)(i) of such
section is amended by inserting ``or (L)'' after
``subparagraph (K)''.
(f) Clarification of Participants In Process.--Such section
is further amended by adding at the end the following new
subparagraph:
``(P) For purposes of this paragraph, the term `other
interested parties', in the case of an installation, includes
any parties eligible for the conveyance of property of the
installation under section 203(k) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 484(k)) or
sections 47151 through 47153 of title 49, United States Code,
whether or not the parties assist the homeless.''.

SEC. 2839. AGREEMENTS FOR CERTAIN SERVICES AT INSTALLATIONS
BEING CLOSED.

(a) 1988 Law.--Section 204(b)(8) of the Defense
Authorization Amendments and Base Closure and Realignment Act
(Public Law 100-526; 10 U.S.C. 2687 note) is amended by
striking out subparagraph (A) and inserting in lieu thereof
the following new subparagraph:
``(A) Subject to subparagraph (C), the Secretary may enter
into agreements (including contracts, cooperative agreements,
or other arrangements for reimbursement) with local
governments for the provision of police or security services,
fire protection services, airfield operation services, or
other community services by such governments at military
installations to be closed under this title if the Secretary
determines that the provision of such services under such
agreements is in the best interests of the Department of
Defense.''.
(b) 1990 Law.--Section 2905(b)(8) of the Defense Base
Closure and Realignment Act of 1990 (part A of title XXIX of
Public Law 101-510; 10 U.S.C. 2867 note) is amended by
striking out subparagraph (A) and inserting in lieu thereof
the following new subparagraph:
``(A) Subject to subparagraph (C), the Secretary may enter
into agreements (including contracts, cooperative agreements,
or other arrangements for reimbursement) with local
governments for the provision of police or security services,
fire protection services, airfield operation services, or
other community services by such governments at military
installations to be closed under this part if the Secretary
determines that the provision of such services under such
agreements is in the best interests of the Department of
Defense.''.

SEC. 2840. AUTHORITY TO TRANSFER PROPERTY AT MILITARY
INSTALLATIONS TO BE CLOSED TO PERSONS WHO
CONSTRUCT OR PROVIDE MILITARY FAMILY HOUSING.

(a) 1988 Law.--Section 204 of the Defense Authorization
Amendments and Base Closure and Realignment Act (Public Law
100-526; 10 U.S.C. 2687 note) is amended by adding at the end
the following new subsection:
``(e) Transfer Authority in Connection With Construction or
Provision of Military Family Housing.--(1) Subject to
paragraph (2), the Secretary may enter into an agreement to
transfer by deed real property or facilities located at or
near an installation closed or to be closed under this title
with any person who agrees, in exchange for the real property
or facilities, to transfer to the Secretary housing units
that are constructed or provided by the person and located at
or near a military installation at which there is a shortage
of suitable housing to meet the requirements of members of
the Armed Forces and their dependents. The Secretary may not
select real property for transfer under this paragraph if the
property is identified in the redevelopment plan for the
installation as items essential to the reuse or redevelopment
of the installation.
``(2) A transfer of real property or facilities may be made
under paragraph (1) only if--
``(A) the fair market value of the housing units to be
received by the Secretary in exchange for the property or
facilities to be transferred is equal to or greater than the
fair market value of such property or facilities, as
determined by the Secretary; or
``(B) in the event the fair market value of the housing
units is less than the fair market value of property or
facilities to be transferred, the recipient of the property
or facilities agrees to pay to the Secretary the amount equal
to the excess of the fair market value of the property or
facilities over the fair market value of the housing units.
``(3) Notwithstanding section 207(a)(7), the Secretary may
deposit funds received under paragraph (2)(B) in the
Department of Defense Family Housing Improvement Fund
established under section 2873(a) of title 10, United States
Code.
``(4) The Secretary shall submit to the appropriate
committees of Congress a report describing each agreement
proposed to be entered into under paragraph (1), including
the consideration to be received by the United States under
the agreement. The Secretary may not enter into the agreement
until the end of the 21-day period beginning on the date the
appropriate committees of Congress receive the report
regarding the agreement.
``(5) The Secretary may require any additional terms and
conditions in connection with an agreement authorized by this
subsection as the Secretary considers appropriate to protect
the interests of the United States.''.
(b) 1990 Law.--Section 2905 of the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note) is amended by adding at the end
the following new subsection:
``(f) Transfer Authority in Connection With Construction or
Provision of Military Family Housing.--(1) Subject to
paragraph (2), the Secretary may enter into an agreement to
transfer by deed real property or facilities located at or
near an installation closed or to be closed under this part
with any person who agrees, in exchange for the real property
or facilities, to transfer to the Secretary housing units
that are constructed or provided by the person and located at
or near a military installation at which there is a shortage
of suitable housing to meet the requirements of members of
the Armed Forces and their dependents. The Secretary may not
select real property for

[[Page H462]]
transfer under this paragraph if the property is identified in the
redevelopment plan for the installation as property essential
to the reuse or redevelopment of the installation.
``(2) A transfer of real property or facilities may be made
under paragraph (1) only if--
``(A) the fair market value of the housing units to be
received by the Secretary in exchange for the property or
facilities to be transferred is equal to or greater than the
fair market value of such property or facilities, as
determined by the Secretary; or
``(B) in the event the fair market value of the housing
units is less than the fair market value of property or
facilities to be transferred, the recipient of the property
or facilities agrees to pay to the Secretary the amount equal
to the excess of the fair market value of the property or
facilities over the fair market value of the housing units.
``(3) Notwithstanding paragraph (2) of section 2906(a), the
Secretary may deposit funds received under paragraph (2)(B)
in the Department of Defense Family Housing Improvement Fund
established under section 2873(a) of title 10, United States
Code.
``(4) The Secretary shall submit to the congressional
defense committees a report describing each agreement
proposed to be entered into under paragraph (1), including
the consideration to be received by the United States under
the agreement. The Secretary may not enter into the agreement
until the end of the 30-day period beginning on the date the
congressional defense committees receive the report regarding
the agreement.
``(5) The Secretary may require any additional terms and
conditions in connection with an agreement authorized by this
subsection as the Secretary considers appropriate to protect
the interests of the United States.''.
(c) Regulations.--Not later than nine months after the date
of the enactment of this Act, the Secretary of Defense shall
prescribe any regulations necessary to carry out subsection
(e) of section 204 of the Defense Authorization Amendments
and Base Closure and Realignment Act (Public Law 100-526; 10
U.S.C. 2687 note), as added by subsection (a), and subsection
(f) of section 2905 of the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note), as added by subsection (b).

SEC. 2841. USE OF SINGLE BASE CLOSURE AUTHORITIES FOR
DISPOSAL OF PROPERTY AND FACILITIES AT FORT
HOLABIRD, MARYLAND.

(a) Consolidation of Base Closure Authorities.--In the case
of the property and facilities at Fort Holabird, Maryland,
described in subsection (b), the Secretary of Defense shall
dispose of such property and facilities in accordance with
section 2905(b)(7) of the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note), as amended by section 2838 of
this Act.
(b) Covered Property and Facilities.--Subsection (a)
applies to the following property and facilities at Fort
Holabird, Maryland:
(1) Property and facilities that were approved for closure
or realignment under title II of the Defense Authorization
Amendments and Base Closure and Realignment Act (Public Law
100-526; 10 U.S.C. 2687 note), but have not been disposed of
as of the date of the enactment of this Act, including
buildings 305 and 306 and the parking lots and other property
associated with such buildings.
(2) Property and facilities that were approved in 1995 for
closure or realignment under the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note).
(c) Use of Surveys and Other Evaluations of Property.--In
carrying out the disposal of the property and facilities
referred to in subsection (b)(1), the Secretary shall utilize
any surveys and other evaluations of such property and
facilities that were prepared by the Corps of Engineers
before the date of the enactment of this Act as part of the
process for the disposal of such property and facilities.
Subtitle D--Land Conveyances Generally

PART I--ARMY CONVEYANCES

SEC. 2851. TRANSFER OF JURISDICTION, FORT SAM HOUSTON, TEXAS.

(a) Transfer of Land for National Cemetery.--The Secretary
of the Army may transfer, without reimbursement, to the
administrative jurisdiction of the Secretary of Veterans
Affairs a parcel of real property (including any improvements
thereon) consisting of approximately 53 acres and comprising
a portion of Fort Sam Houston, Texas.
(b) Use of Land.--The Secretary of Veterans Affairs shall
use the real property transferred under subsection (a) as a
national cemetery under chapter 24 of title 38, United States
Code.
(c) Legal Description.--The exact acreage and legal
description of the real property to be transferred under this
section shall be determined by a survey satisfactory to the
Secretary of the Army. The cost of the survey shall be borne
by the Secretary of Veterans Affairs.
(d) Additional Terms and Conditions.--The Secretary of the
Army may require such additional terms and conditions in
connection with the transfer under this section as
the Secretary of the Army considers appropriate to protect
the interests of the United States.

SEC. 2852. TRANSFER OF JURISDICTION, FORT BLISS, TEXAS.

(a) Transfer of Land for National Cemetery.--The Secretary
of the Army may transfer, without reimbursement, to the
administrative jurisdiction of the Secretary of Veterans
Affairs a parcel of real property (including any improvements
thereon) consisting of approximately 22 acres and comprising
a portion of Fort Bliss, Texas.
(b) Use of Land.--The Secretary of Veterans Affairs shall
use the real property transferred under subsection (a) as an
addition to the Fort Bliss National Cemetery and administer
such real property pursuant to chapter 24 of title 38, United
States Code.
(c) Legal Description.--The exact acreage and legal
description of the real property to be transferred under this
section shall be determined by a survey satisfactory to the
Secretary of the Army. The cost of the survey shall be borne
by the Secretary of Veterans Affairs.
(d) Additional Terms and Conditions.--The Secretary of the
Army may require such additional terms and conditions in
connection with the transfer under this section as the
Secretary of the Army considers appropriate to protect the
interests of the United States.

SEC. 2853. TRANSFER OF JURISDICTION AND LAND CONVEYANCE, FORT
DEVENS MILITARY RESERVATION, MASSACHUSETTS.

(a) Transfer of Land for Wildlife Refuge.--Subject to
subsections (b) and (c), the Secretary of the Army shall
transfer, without reimbursement, to the administrative
jurisdiction of the Secretary of the Interior that portion of
Fort Devens Military Reservation, Massachusetts, that is
situated south of Massachusetts State Route 2, for inclusion
in the Oxbow National Wildlife Refuge.
(b) Land Conveyance.--Subject to subsection (c), the
Secretary of the Army shall convey to the Town of Lancaster,
Massachusetts (in this section referred to as the ``Town''),
all right, title, and interest of the United States in and to
a parcel of real property consisting of approximately 100
acres of the parcel available for transfer under subsection
(a) and located adjacent to Massachusetts State Highway 70.
(c) Requirements Relating to Transfer and Conveyance.--(1)
The transfer under subsection (a) and the conveyance under
subsection (b) may not be made unless the property to be
transferred and conveyed is determined to be excess to the
needs of the Department of Defense.
(2) The transfer and conveyance shall be made as soon as
practicable after the date on which the property is
determined to be excess to the needs of the Department of
Defense.
(d) Legal Description.--(1) The exact acreage and legal
description of the real property to be transferred under
subsection (a) shall be determined by a survey mutually
satisfactory to the Secretary of the Army and the Secretary
of the Interior. The cost of the survey shall be borne by the
Secretary of the Interior.
(2) The exact acreage and legal description of the real
property to be conveyed under subsection (b) shall be
determined by a survey mutually satisfactory to the Secretary
of the Army, the Secretary of the Interior, and the Board of
Selectmen of the Town. The cost of the survey shall be borne
by the Town.
(e) Additional Terms and Conditions.--The Secretary of the
Army may require such additional terms and conditions in
connection with the transfer under subsection (a) and the
conveyance under subsection (b) as the Secretary of the Army
considers appropriate to protect the interests of the United
States.

SEC. 2854. MODIFICATION OF LAND CONVEYANCE, FORT BELVOIR,
VIRGINIA.

(a) Designation of Recipient.--Subsection (a) of section
2821 of the Military Construction Authorization Act for
Fiscal Years 1990 and 1991 (division B of Public Law 101-189;
103 Stat. 1658) is amended by striking out ``any grantee
selected in accordance with subsection (e)'' and inserting in
lieu thereof ``the County of Fairfax, Virginia (in this
section referred to as the `grantee'),''.
(b) Consideration.--Subsection (b)(1) of such section is
amended by striking out subparagraph (B) and inserting in
lieu thereof the following new subparagraph:
``(B) grant title, free of liens and other encumbrances, to
the Department to such facilities and, if not already owned
by the Department, to the underlying land; and''.
(c) Content of Agreement.--Subsection (c) of such section
is amended to read as follows:
``(c) Content of Agreement.--An agreement entered into
under this section shall include the following:
``(1) A requirement that the grantee construct facilities
and make infrastructure improvements for the Department of
the Army that the Secretary determines are necessary for the
Department at Fort Belvoir and at other sites at which
activities will be relocated as a result of the conveyance
made under this section.
``(2) A requirement that the construction of facilities and
infrastructure improvements referred to in paragraph (1) be
carried out in accordance with plans and specifications
approved by the Secretary.
``(3) A requirement that the Secretary retain a lien or
other security interest against the property conveyed to the
grantee in the amount of the fair market value of the
property, as determined under subsection (b)(2). The
agreement will specify the terms for releasing the lien or
other security interest, in

[[Page H463]]
whole or in part. In the event of default by the County on its
obligations under the terms of the agreement, the Secretary
shall enforce the lien or security interest. The proceeds
obtained through enforcing the lien or security interest may
be used by the Secretary to construct facilities and make
infrastructure improvements in lieu of those provided for in
the agreement.''.
(d) Surveys.--Subsection (g) of such section is amended by
striking out the last sentence and inserting in lieu thereof
the following: ``The grantee shall be responsible for
completing any such survey without cost to the United
States.''.
(e) Conforming Amendments.--Such section is further
amended--
(1) in subsection (a), by striking out ``Subject to
subsections (b) through (h), the'' and inserting in lieu
thereof ``The'';
(2) in subsection (b)(1), by striking out ``subsection
(c)(1)(D)'' both places it appears and inserting in lieu
thereof ``subsection (c)(1)(A)'';
(3) by striking out subsections (e) and (f); and
(4) by redesignating subsections (g) and (h) as subsections
(e) and (f), respectively.

SEC. 2855. LAND EXCHANGE, FORT LEWIS, WASHINGTON.

(a) Conveyance Authorized.--The Secretary of the Army may
convey to Weyerhaeuser Real Estate Company, Tacoma,
Washington (in this section referred to as ``WRECO''), all
right, title, and interest of the United States in and to a
parcel of real property at Fort Lewis, Washington, known as
an unimproved portion of Tract 1000 (formerly being in the
DuPont Steilacoom Road, consisting of approximately 1.23
acres), and Tract 26E (consisting of 0.03 acre).
(b) Consideration.--As consideration for the conveyance
authorized by subsection (a), WRECO shall convey or cause to
be conveyed to the United States, by warranty deed acceptable
to the Secretary, a 0.39 acre parcel of real property located
adjacent to Fort Lewis, Washington, together with other
consideration acceptable to the Secretary. The total
consideration conveyed to the United States shall not be less
than the fair market value of the land conveyed under
subsection (a).
(c) Determination of Fair Market Value.--The determinations
of the Secretary regarding the fair market values of the
parcels of real property and improvements to be conveyed
pursuant to subsections (a) and (b) shall be final.
(d) Description of Property.--The exact acreage and legal
description of the parcels of real property to be conveyed
pursuant to subsections (a) and (b) shall be determined by a
survey satisfactory to the Secretary. The cost of the survey
shall be borne by WRECO.
(e) Effect on Existing Reversionary Interest.--The
Secretary may enter into an agreement with the appropriate
officials of Pierce County, Washington, under which--
(1) the existing reversionary interest of Pierce County in
the lands to be conveyed by the United States under
subsection (a) is extinguished; and
(2) the conveyance to the United States under subsection
(b) is made subject to a similar reversionary interest in
favor of Pierce County in the lands conveyed under such
subsection.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyances under this section as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2856. LAND EXCHANGE, ARMY RESERVE CENTER, GAINESVILLE,
GEORGIA.

(a) Land Exchange Authorized.--The Secretary of the Army
may convey to the City of Gainesville, Georgia (in this
section referred to as the ``City''), all right, title, and
interest of the United States in and to a parcel of real
property, together with any improvements thereon, consisting
of approximately 4.2 acres and located on Shallowford Road in
Gainesville, Georgia, the site of the Army Reserve Center,
Gainesville, Georgia.
(b) Consideration.--As consideration for the conveyance
authorized by subsection (a), the City shall--
(1) convey to the United States all right, title, and
interest in and to a parcel of real property consisting of
approximately 8 acres located in the Atlas Industrial Park,
Gainesville, Georgia, that is acceptable to the Secretary;
(2) design and construct on such real property suitable
facilities (as determined by the Secretary) for training
activities of the Army Reserve to replace facilities conveyed
under subsection (a);
(3) carry out, at cost to the City, any environmental
assessments and any other studies, analyses, and assessments
that may be required under Federal law in connection with the
land conveyances under subsection (a) and paragraph (1) and
the construction under paragraph (2);
(4) pay the Secretary the amount (as determined by the
Secretary) equal to the cost of relocating Army Reserve units
from the real property to be conveyed under subsection (a) to
the replacement facilities to be constructed under paragraph
(2); and
(5) if the fair market value of the real property conveyed
by the Secretary under subsection (a) exceeds the fair market
value of the consideration provided by the City under
paragraphs (1) through (4), pay the United States the amount
equal to the amount of such excess.
(c) Determination of Fair Market Value.--The Secretary
shall determine the fair market value of the real property to
be conveyed under subsection (a) and of the consideration to
be furnished by the City under subsection (b). Such
determination shall be final.
(d) Description of Property.--The exact acreage and legal
description of the parcels of real property to be conveyed
under subsections (a) and (b) shall be determined by a survey
satisfactory to the Secretary. The cost of the survey shall
be borne by the City.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyances authorized by this section as the
Secretary considers appropriate to protect the interests of
the United States.

SEC. 2857. LAND CONVEYANCE, HOLSTON ARMY AMMUNITION PLANT,
MOUNT CARMEL, TENNESSEE.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without reimbursement, to the City of Mount Carmel,
Tennessee (in this section referred to as the ``City''),
all right, title, and interest of the United States in and
to a parcel of real property, including improvements
thereon, consisting of approximately 6.5 acres located at
Holston Army Ammunition Plant, Tennessee. The property is
located adjacent to the Mount Carmel Cemetery and is
intended for expansion of the cemetery.
(b) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory
to the Secretary. The cost of the survey shall be borne by
the City.
(c) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under subsection (a) as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2858. LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT,
CHARLESTOWN, INDIANA.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to the State of Indiana (in
this 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, that consists
of approximately 1125 acres at the inactivated Indiana Army
Ammunition Plant in Charlestown, Indiana, and is the subject
of a 25-year lease between the Secretary and the State.
(b) Condition of Conveyance.--The conveyance authorized
under subsection (a) shall be subject to the condition that
the State use the conveyed property for recreational
purposes.
(c) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory
to the Secretary. The cost of the survey shall be borne by
the State.
(d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under subsection (a) as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2859. LAND CONVEYANCE, FORT ORD, CALIFORNIA.

(a) Conveyance Authorized.--The Secretary of the Army may
convey to the City of Seaside, California (in this section
referred to as the ``City''), all right, title, and interest
of the United States in and to a parcel of real property
(including improvements thereon) consisting of approximately
477 acres located in Monterey County, California, and
comprising a portion of the former Fort Ord Military Complex.
The real property to be conveyed to the City includes the two
Fort Ord Golf Courses, Black Horse and Bayonet, and a portion
of the Hayes Housing Facilities.
(b) Consideration.--As consideration for the conveyance of
the real property and improvements under subsection (a), the
City shall pay to the United States an amount equal to the
fair market value of the property to be conveyed, as
determined by the Secretary.
(c) Use and Deposit of Proceeds.--(1) From the funds paid
by the City under subsection (b), the Secretary shall deposit
in the Morale, Welfare, and Recreation Fund Account of the
Department of the Army such amounts as may be necessary to
cover morale, welfare, and recreation activities at Army
installations in the general vicinity of Fort Ord during
fiscal years 1996 through 2000. The amount deposited by the
Secretary into the Account shall not exceed the fair market
value, as established under subsection (b), of the two Fort
Ord Golf Courses conveyed under subsection (a). The Secretary
shall notify Congress of the amount to be deposited not later
than 90 days after the date of the conveyance.
(2) The Secretary shall deposit the balance of any funds
paid by the City under subsection (b), after deducting the
amount deposited under paragraph (1), in the Department of
Defense Base Closure Account 1990.
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey mutually
satisfactory to the Secretary and the City. The cost of the
survey shall be borne by the City.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under this section as the Secretary
considers appropriate to protect the interests of the United
States.

[[Page H464]]

SEC. 2860. LAND CONVEYANCE, PARKS RESERVE FORCES TRAINING
AREA, DUBLIN, CALIFORNIA.

(a) Conveyance Authorized.--(1) Except as provided in
paragraph (2), the Secretary of the Army may convey to the
County of Alameda, California (in this section referred to as
the ``County''), all right, title, and interest of the United
States in and to a parcel of real property, including
improvements thereon, consisting of approximately 42 acres
located at Parks Reserve Forces Training Area, Dublin,
California.
(2) The conveyance authorized by this section shall not
include any oil, gas, or mineral interest of the United
States in the real property to be conveyed.
(b) Consideration.--(1) As consideration for the conveyance
under subsection (a)(1), the County shall provide the Army
with the following services at the portion of Parks Reserve
Forces Training Area retained by the Army:
(A) Relocation of the main gate of the retained Training
Area from Dougherty Road to Dublin Boulevard across from the
Bay Area Rapid Transit District East Dublin station,
including the closure of the existing main gate on Dougherty
Road, construction of a security facility, and construction
of a roadway from the new entrance to Fifth Street.
(B) Enclosing and landscaping of the southern boundary of
the retained Training Area installation located northerly of
Dublin Boulevard.
(C) Enclosing and landscaping of the eastern boundary of
the retained Training Area from Dublin Boulevard to Gleason
Drive.
(D) Resurfacing of roadways within the retained Training
Area.
(E) Provision of such other services in connection with the
retained Training Area, including relocation or
reconstruction of water lines, relocation or reconstruction
of sewer lines, construction of drainage improvements, and
construction of buildings, as the Secretary and the County
may determine to be appropriate.
(F) Provision for and funding of any environmental
mitigation that is necessary as a result of a change in use
of the conveyed property by the County.
(2) The detailed specifications for the services to be
provided under paragraph (1) may be determined and approved
on behalf of the Secretary by the Commander of Parks Reserve
Forces Training Area. The preparation costs of such
specifications shall be borne by the County.
(3) The fair market value of improvements and services
received by the United States from the County under paragraph
(1) must be equal to or exceed the appraised fair market
value of the real property to be conveyed under subsection
(a)(1). The appraisal of the fair market value of the
property shall be subject to the Secretary's review and
approval.
(c) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a)(1) shall be determined by a survey
satisfactory to the Secretary. The cost of the survey shall
be borne by the County.
(d) Time for Transfer of Title.--The transfer of title to
the County under subsection (a)(1) may be executed by the
Secretary only upon the satisfactory guarantee by the County
of completion of the services to be provided under subsection
(b).
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under subsection (a)(1) as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2861. LAND CONVEYANCE, ARMY RESERVE CENTER, YOUNGSTOWN,
OHIO.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to the City of Youngstown,
Ohio (in this section referred to as the ``City''), all
right, title, and interest of the United States in and to a
parcel of excess real property, including improvements
thereon, that is located at 399 Miller Street in Youngstown,
Ohio, and contains the Kefurt Army Reserve Center.
(b) Condition of Conveyance.--The conveyance authorized
under subsection (a) shall be subject to the condition that
the City retain the conveyed property for the use and benefit
of the Youngstown Fire Department.
(c) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory
to the Secretary. The cost of the survey shall be borne by
the City.
(d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under subsection (a) as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2862. LAND CONVEYANCE, ARMY RESERVE PROPERTY, FORT
SHERIDAN, ILLINOIS.

(a) Conveyance Authorized.--Subject to subsection (b), the
Secretary of the Army may convey to any transferee selected
under subsection (g) all right, title, and interest of the
United States in and to a parcel of real property (including
improvements thereon) at Fort Sheridan, Illinois, consisting
of approximately 114 acres and comprising an Army Reserve
area.
(b) Requirement for Federal Screening of Property.--The
Secretary may not carry out the conveyance of property
authorized by subsection (a) unless the Secretary determines
that no department or agency of the Federal Government will
accept the transfer of the property.
(c) Consideration.--(1) As consideration for the conveyance
under subsection (a), the transferee selected under
subsection (g) shall--
(A) convey to the United States a parcel of real property
that meets the requirements of subsection (d);
(B) design for and construct on the property conveyed under
subparagraph (A) such facilities (including support
facilities and infrastructure) to replace the facilities
conveyed pursuant to the authority in subsection (a) as the
Secretary considers appropriate; and
(C) pay the cost of relocating Army personnel in the
facilities located on the real property conveyed pursuant to
the authority in subsection (a) to the facilities constructed
under subparagraph (B).
(2) The Secretary shall ensure that the fair market value
of the consideration provided by the transferee under
paragraph (1) is not less than the fair market value of the
real property conveyed by the Secretary under subsection (a).
(d) Requirements Relating to Property To Be Conveyed to
United States.--The real property conveyed to the United
States under subsection (c)(1)(A) by the transferee selected
under subsection (g) shall--
(1) be located not more than 25 miles from Fort Sheridan;
(2) be located in a neighborhood or area having social and
economic conditions similar to the social and economic
conditions of the area in which Fort Sheridan is located; and
(3) be acceptable to the Secretary.
(e) Interim Relocation of Army Personnel.--Pending
completion of the construction of all the facilities proposed
to be constructed under subsection (c)(1)(B) by the
transferee selected under subsection (g), the Secretary may
relocate Army personnel in the facilities located on the
property to be conveyed pursuant to the authority in
subsection (a) to the facilities that have been constructed
by the transferee under such subsection (c)(1)(B).
(f) Determination of Fair Market Value.--The Secretary
shall determine the fair market value of the real property to
be conveyed under subsection (a) and of the consideration to
be provided under subsection (c)(1). Such determination shall
be final.
(g) Selection of Transferee.--(1) The Secretary shall use
competitive procedures for the selection of a transferee
under subsection (a).
(2) In evaluating the offers of prospective transferees,
the Secretary shall--
(A) consider such criteria as the Secretary considers to be
appropriate to determine whether prospective transferees will
be able to satisfy the consideration requirements specified
in subsection (c)(1); and
(B) consult with the communities and jurisdictions in the
vicinity of Fort Sheridan (including the City of Lake Forest,
the City of Highwood, and the City of Highland Park and the
County of Lake, Illinois) in order to determine the most
appropriate use of the property to be conveyed.
(h) Descriptions of Property.--The exact acreage and legal
descriptions of the real property to be conveyed by the
Secretary under subsection (a) and the real property to be
conveyed under subsection (c)(1)(A) shall be determined by a
survey satisfactory to the Secretary. The cost of the survey
shall be borne by the transferee selected under subsection
(g).
(i) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyances under this section as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2863. LAND CONVEYANCE, PROPERTY UNDERLYING CUMMINS
APARTMENT COMPLEX, FORT HOLABIRD, MARYLAND.

(a) Conveyance Authorized.--Notwithstanding any other
provision of law, the Secretary of the Army may convey to the
existing owner of the improvements thereon all right, title,
and interest of the United States in and to a parcel of real
property underlying the Cummins Apartment Complex at Fort
Holabird, Maryland, that consists of approximately 6 acres,
and any interest the United States may have in the
improvements thereon.
(b) Consideration.--As consideration for the conveyance
under subsection (a), the owner of the improvements referred
to in that subsection shall provide compensation to the
United States in an amount equal to the fair market value (as
determined by the Secretary) of the property interest to be
conveyed.
(c) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey that is
satisfactory to the Secretary.
(d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under subsection (a) as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2864. MODIFICATION OF EXISTING LAND CONVEYANCE, ARMY
PROPERTY, HAMILTON AIR FORCE BASE, CALIFORNIA.

(a) Application of Section.--The authority provided in
subsection (b) shall apply

[[Page H465]]
only in the event that the purchaser purchases only a portion of the
Sale Parcel referred to in section 9099 of the Department of
Defense Appropriations Act, 1993 (Public Law 102-396; 106
Stat. 1924) and exercises the purchaser's option to withdraw
from the sale as to the rest of the Sale Parcel.
(b) Conveyance Authority in Event of Partial Sale.--The
Secretary of the Army may convey to the City of Novato,
California (in this section referred to as the ``City'')--
(1) that portion of the Sale Parcel (other than Landfill 26
and an appropriate buffer area around it and the groundwater
treatment facility site) that is not purchased as provided in
subsection (a); and
(2) any of the land referred to in subsection (e) of such
section 9099 that is not purchased by the purchaser.
(c) Consideration and Conditions on Conveyance.--The
conveyance under subsection (b) shall be made as a public
benefit transfer to the City for the sum of One Dollar,
subject to the condition that the conveyed property be used
for school, classroom, or other educational purposes or as a
public park or recreation area.
(d) Subsequent Conveyance by the City.--(1) If, within 10
years after the conveyance under subsection (b), the City
conveys all or any part of the conveyed property to a third
party without the use restrictions specified in subsection
(c), the City shall pay to the Secretary of the Army an
amount equal to the proceeds received by the City from the
conveyance, minus the demonstrated reasonable costs of making
the conveyance and of any improvements made by the City to
the property following its acquisition of the land (but only
to the extent such improvements increase the value of the
property conveyed). The Secretary of the Army shall deliver
into the applicable closing escrow an acknowledgement of
receipt of the proceeds and a release of the reverter right
under subsection (e) as to the affected land, effective upon
such receipt.
(2) Until one year after the completion of the cleanup of
contaminated soil in the Landfill located on the Sale Parcel
and completion of the groundwater treatment facilities, any
conveyance by the City must be at a per-acre price for the
portion sold that is at least equal to the per-acre contract
price paid by the purchaser for the portion of the Sale
Parcel purchased under the Agreement and Modification for the
purchase of the Sale Parcel by the purchaser. Thereafter, any
conveyance by the City must be at a price at least equal to
the fair market value of the portion sold.
(3) This subsection shall not apply to a conveyance by the
City to another public or quasi-public agency for public uses
of the kind described in subsection (c).
(e) Reversion.--If the Secretary of the Army determines
that the City has failed to make a payment as required
by subsection (d)(1) or that any portion of the conveyed
property retained by the City or conveyed under subsection
(d)(3) is not being utilized in accordance with subsection
(c), title to the applicable portion of such property
shall revert to the United States at the election of the
Administrator of the General Services Administration.
(f) Special Conveyance Regarding Building 138 Parcel.--The
Secretary of the Army may convey to the purchaser of the Sale
Parcel the Building 138 parcel, which has been designated by
the parties as Parcel A4. The per-acre price for the portion
conveyed under this subsection shall be at least equal to the
per-acre contract price paid by the purchaser for the portion
of the Sale Parcel purchased under the Agreement and
Modification, dated September 25, 1990, as amended.

PART II--NAVY CONVEYANCES

SEC. 2865. TRANSFER OF JURISDICTION, NAVAL WEAPONS INDUSTRIAL
RESERVE PLANT, CALVERTON, NEW YORK.

(a) Transfer Authorized.--Notwithstanding section 2854 of
the Military Construction Authorization Act for Fiscal Year
1993 (division B of Public Law 102-484; 106 Stat. 2626), as
amended by section 2823 of the Military Construction
Authorization Act for Fiscal Year 1995 (division B of Public
Law 103-337; 108 Stat. 3058), the Secretary of the Navy may
transfer, without reimbursement, to the administrative
jurisdiction of the Secretary of Veterans Affairs a parcel of
real property consisting of approximately 150 acres located
adjacent to the Calverton National Cemetery, Calverton, New
York, and comprising a portion of the buffer zone of the
Naval Weapons Industrial Reserve Plant, Calverton, New York.
(b) Use of Property.--The Secretary of Veterans Affairs
shall use the real property transferred under subsection (a)
as an addition to the Calverton National Cemetery and
administer such real property pursuant to chapter 24 of title
38, United States Code.
(c) Survey.--The cost of any survey necessary for the
transfer of jurisdiction of the real property described in
subsection (a) from the Secretary of the Navy to the
Secretary of Veterans Affairs shall be borne by the Secretary
of Veterans Affairs.
(d) Additional Terms and Conditions.--The Secretary of the
Navy may require such additional terms and conditions in
connection with the transfer under this section as the
Secretary of the Navy considers appropriate to protect the
interests of the United States.

SEC. 2866. MODIFICATION OF LAND CONVEYANCE, NAVAL WEAPONS
INDUSTRIAL RESERVE PLANT, CALVERTON, NEW YORK.

(a) Removal of Reversionary Interest; Addition of Lease
Authority.--Subsection (c) of section 2833 of the Military
Construction Authorization Act for Fiscal Year 1995 (division
B of Public Law 103-337; 108 Stat. 3061) is amended to read
as follows:
``(c) Lease Authority.--Until such time as the real
property described in subsection (a) is conveyed by deed, the
Secretary may lease the property, along with improvements
thereon, to the Community Development Agency in exchange for
security services, fire protection services, and maintenance
services provided by the Community Development Agency for the
property.''.
(b) Conforming Amendment.--Subsection (e) of such section
is amended by striking out ``subsection (a)'' and inserting
in lieu thereof ``subsection (a) or a lease under subsection
(c)''.

SEC. 2867. LAND CONVEYANCE ALTERNATIVE TO EXISTING LEASE
AUTHORITY, NAVAL SUPPLY CENTER, OAKLAND,
CALIFORNIA.

Section 2834(b) of the Military Construction Authorization
Act for Fiscal Year 1993 (division B of Public Law 102-484;
106 Stat. 2614), as amended by section 2833 of the Military
Construction Authorization Act for Fiscal Year 1994 (division
B of Public Law 103-160; 107 Stat. 1896) and section 2821 of
the Military Construction Authorization Act for Fiscal Year
1995 (division B of Public Law 103-337; 108 Stat. 3057), is
further amended by adding at the end the following new
paragraphs:
``(4) In lieu of entering into a lease under paragraph (1),
or in place of an existing lease under that paragraph, the
Secretary may convey, without consideration, the property
described in that paragraph to the City of Oakland,
California, the Port of Oakland, California, the City of
Alameda, California, or the City of Richmond, California,
under such terms and conditions as the Secretary considers
appropriate.
``(5) The exact acreage and legal description of any
property conveyed under paragraph (4) shall be determined by
a survey satisfactory to the Secretary. The cost of each
survey shall be borne by the recipient of the property.''.

SEC. 2868. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE
PLANT, MCGREGOR, TEXAS.

(a) Conveyance Authorized.--(1) The Secretary of the Navy
may convey, without consideration, to the City of McGregor,
Texas (in this section referred to as the ``City''), all
right, title, and interest of the United States in and to a
parcel of real property, including any improvements thereon,
containing the Naval Weapons Industrial Reserve Plant,
McGregor, Texas.
(2) After screening the facilities, equipment, and fixtures
(including special tooling and special test equipment)
located on the parcel for other uses by the Department of the
Navy, the Secretary may include in the conveyance under
paragraph (1) any facilities, equipment, and fixtures on the
parcel not to be so used if the Secretary determines that
manufacturing activities requiring the use of such
facilities, equipment, and fixtures are likely to continue or
be reinstated on the parcel after conveyance under paragraph
(1).
(b) Lease Authority.--Until such time as the real property
described in subsection (a)(1) is conveyed by deed, the
Secretary may lease the property, along with improvements
thereon, to the City in exchange for security services, fire
protection services, and maintenance services provided by the
City for the property.
(c) Condition of Conveyance.--The conveyance authorized
under subsection (a) shall be subject to the condition that
the City, directly or through an agreement with a public or
private entity, use the conveyed property (or offer the
conveyed property for use) for economic redevelopment to
replace all or a part of the economic activity being lost at
the parcel.
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a)(1) shall be determined by a survey
satisfactory to the Secretary. The cost of the survey shall
be borne by the City.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under subsection (a) or a lease under
subsection (b) as the Secretary considers appropriate to
protect the interests of the United States.

SEC. 2869. LAND CONVEYANCE, NAVAL SURFACE WARFARE CENTER,
MEMPHIS, TENNESSEE.

(a) Conveyance Authorized.--The Secretary of the Navy may
convey to the Memphis and Shelby County Port Commission,
Memphis, Tennessee (in this section referred to as the
``Port''), all right, title, and interest of the United
States in and to a parcel of real property (including any
improvements thereon) consisting of approximately 26 acres
that is located at the Carderock Division, Naval Surface
Warfare Center, Memphis Detachment, Presidents Island,
Memphis, Tennessee.
(b) Consideration.--As consideration for the conveyance of
real property under subsection (a), the Port shall--
(1) grant to the United States a restrictive easement in
and to a parcel of real property consisting of approximately
100 acres that is adjacent to the Memphis Detachment,
Presidents Island, Memphis, Tennessee; and
(2) if the fair market value of the easement granted under
paragraph (1) is less than the

[[Page H466]]
fair market value of the real property conveyed under subsection (a),
provide the United States such additional consideration as
the Secretary and the Port jointly determine appropriate so
that the value of the consideration received by the United
States under this subsection is equal to or greater than the
fair market value of the real property conveyed under
subsection (a).
(c) Condition of Conveyance.--The conveyance authorized by
subsection (a) shall be carried out in accordance with the
provisions of the Land Exchange Agreement between the United
States and the Memphis and Shelby County Port Commission,
Memphis, Tennessee.
(d) Determination of Fair Market Value.--The Secretary
shall determine the fair market value of the real property to
be conveyed under subsection (a) and of the easement to be
granted under subsection (b)(1). Such determinations shall be
final.
(e) Use of Proceeds.--The Secretary shall deposit any
proceeds received under subsection (b)(2) as consideration
for the conveyance of real property authorized under
subsection (a) in the special account established pursuant to
section 204(h)(2) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 485(h)(2)).
(f) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) and the easement to be granted under
subsection (b)(1) shall be determined by a survey
satisfactory to the Secretary. The cost of the survey shall
be borne by the Port.
(g) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance authorized by subsection (a) and the
easement granted under subsection (b)(1) as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2870. LAND CONVEYANCE, NAVY PROPERTY, FORT SHERIDAN,
ILLINOIS.

(a) Conveyance Authorized.--Subject to subsection (b), the
Secretary of the Navy may convey to any transferee selected
under subsection (i) all right, title, and interest of the
United States in and to a parcel of real property (including
any improvements thereon) at Fort Sheridan, Illinois,
consisting of approximately 182 acres and comprising the Navy
housing areas at Fort Sheridan.
(b) Requirement for Federal Screening of Property.--The
Secretary may not carry out the conveyance of property
authorized by subsection (a) unless the Secretary determines
that no department or agency of the Federal Government will
accept the transfer of the property.
(c) Consideration.--(1) As consideration for the conveyance
under subsection (a), the transferee selected under
subsection (i) shall--
(A) convey to the United States a parcel of real property
that meets the requirements of subsection (d);
(B) design for and construct on the property conveyed under
subparagraph (A) such housing facilities (including support
facilities and infrastructure) to replace the housing
facilities conveyed pursuant to the authority in subsection
(a) as the Secretary considers appropriate;
(C) pay the cost of relocating members of the Armed Forces
residing in the housing facilities located on the real
property conveyed pursuant to the authority in subsection (a)
to the housing facilities constructed under subparagraph (B);
(D) provide for the education of dependents of such members
under subsection (e); and
(E) carry out such activities for the operation,
maintenance, and improvement of the facilities constructed
under subparagraph (B) as the Secretary and the transferee
jointly determine appropriate.
(2) The Secretary shall ensure that the fair market value
of the consideration provided by the transferee under
paragraph (1) is not less than the fair market value of the
property interest conveyed by the Secretary under subsection
(a).
(d) Requirements Relating to Property To Be Conveyed to
United States.--The property interest conveyed to the United
States under subsection (c)(1)(A) by the transferee selected
under subsection (i) shall--
(1) be located not more than 25 miles from the Great Lakes
Naval Training Center, Illinois;
(2) be located in a neighborhood or area having social and
economic conditions similar to the social and economic
conditions of the area in which Fort Sheridan is located; and
(3) be acceptable to the Secretary.
(e) Education of Dependents of Members of the Armed
Forces.--In providing for the education of dependents of
members of the Armed Forces under subsection (c)(1)(D), the
transferee selected under subsection (i) shall ensure that
such dependents may enroll at the schools of one or more
school districts in the vicinity of the real property
conveyed to the United States under subsection (c)(1)(A)
which schools and districts--
(1) meet such standards for schools and schools districts
as the Secretary shall establish; and
(2) will continue to meet such standards after the
enrollment of such dependents regardless of the receipt by
such school districts of Federal impact aid.
(f) Interim Relocation of Members of the Armed Forces.--
Pending completion of the construction of all the housing
facilities proposed to be constructed under subsection
(c)(1)(B) by the transferee selected under subsection (i),
the Secretary may relocate--
(1) members of the Armed Forces residing in housing
facilities located on the property to be conveyed pursuant to
the authority in subsection (a) to the housing facilities
that have been constructed by the transferee under such
subsection (c)(1)(B); and
(2) other Government tenants located on such property to
other facilities.
(g) Applicability of Certain Agreements.--The property
conveyed by the Secretary pursuant to the authority in
subsection (a) shall be subject to the Memorandum of
Understanding concerning the Transfer of Certain Properties
at Fort Sheridan, Illinois, dated August 8, 1991, between the
Department of the Army and the Department of the Navy.
(h) Determination of Fair Market Value.--The Secretary
shall determine the fair market value of the real property
interest to be conveyed under subsection (a) and of the
consideration to be provided under subsection (c)(1). Such
determination shall be final.
(i) Selection of Transferee.--(1) The Secretary shall use
competitive procedures for the selection of a transferee
under subsection (a).
(2) In evaluating the offers of prospective transferees,
the Secretary shall--
(A) consider such criteria as the Secretary considers to be
appropriate to determine whether prospective transferees will
be able to satisfy the consideration requirements specified
in subsection (c)(1); and
(B) consult with the communities and jurisdictions in the
vicinity of Fort Sheridan (including the City of Lake Forest,
the City of Highwood, and the City of Highland Park and the
County of Lake, Illinois) in order to determine the most
appropriate use of the property to be conveyed.
(j) Descriptions of Property.--The exact acreage and legal
descriptions of the real property to be conveyed by the
Secretary under subsection (a) and the real property to be
conveyed under subsection (c)(1)(A) shall be determined by a
survey satisfactory to the Secretary. The cost of the survey
shall be borne by the transferee selected under subsection
(i).
(k) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyances under this section as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2871. LAND CONVEYANCE, NAVAL COMMUNICATIONS STATION,
STOCKTON, CALIFORNIA.

(a) Conveyance Authorized.--Subject to subsection (b), the
Secretrary of the Navy may convey to the Port of Stockton,
California (in this section referred to as the ``Port''), all
right, title, and interest of the United States in and to a
parcel of real property, including any improvements thereon,
consisting of approximately 1,450 acres at the Naval
Communication Station, Stockton, California.
(b) Requirement for Federal Screening of Property.--The
Secretary may not carry out the conveyance of property
authorized by subsection (a) unless the Secretary determines
that no department or agency of the Federal Government will
accept the transfer of the property.
(c) Interim Lease.--Until such time as the real property
described in subsection (a) is conveyed by deed, the
Secretary may lease the property, along with improvements
thereon, to the Port under terms and conditions satisfactory
to the Secretary.
(d) Consideration.--The conveyance may be made as a public
benefit conveyance for port development as defined in section
203 of the Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 484) if the Port satisfies the criteria in
such section and the regulations prescribed to implement such
section. If the Port fails to qualify for a public benefit
conveyance and still desires to acquire the property, the
Port shall pay to the United States an amount equal to the
fair market value of the property to be conveyed, as
determined by the Secretary.
(e) Federal Lease of Conveyed Property.--As a condition for
transfer of this property under subparagraph (a), the
Secretary may require that the Port lease to the Department
of Defense or any other Federal agency all or any part of the
property being used by the Federal Government at the time of
conveyance. Any such lease shall be made under the same terms
and conditions as in force at the time of the conveyance.
Such terms and conditions will continue to include payment to
the Port for maintenance of facilities leased to the Federal
Government. Such maintenance of the Federal premises shall be
to the reasonable satisfaction of the United States, or as
required by all applicable Federal, State, and local laws
and ordinances.
(f) Description of Property.--The exact acreage and legal
description of the property to be conveyed under subsection
(a) shall be determined by a survey satisfactory to the
Secretary. The cost of the survey shall be borne by the Port.
(g) Additional Terms.--The Secretary may require such
additional terms and conditions in connection with the
conveyance under subsection (a) or the lease under subsection
(c) as the Secretary considers appropriate to protect the
interests of the United States.

SEC. 2872. LEASE OF PROPERTY, NAVAL AIR STATION AND MARINE
CORPS AIR STATION, MIRAMAR, CALIFORNIA.

(a) Lease Authorized.--Notwithstanding section 2692(a)(1)
of title 10, United States

[[Page H467]]
Code, the Secretary of the Navy may lease to the City of San Diego,
California (in this subsection referred to as the ``City''),
the parcel of real property, including improvements thereon,
described in subsection (b) in order to permit the City to
carry out activities on the parcel relating to solid waste
management, including the operation and maintenance of one or
more solid waste landfills. Pursuant to the lease, the
Secretary may authorize the City to construct and operate on
the parcel facilities related to solid waste management,
including a sludge processing facility.
(b) Covered Property.--The parcel of property to be leased
under subsection (a) is a parcel of real property consisting
of approximately 1,400 acres that is located at Naval Air
Station, Miramar, California, or Marine Corps Air Station,
Miramar, Cali- fornia.
(c) Lease Term.--The lease authorized under subsection (a)
shall be for an initial term of not more than 50 years. Under
the lease, the Secretary may provide the City with an option
to extend the lease for such number of additional periods of
such length as the Secretary considers appropriate.
(d) Form of Consideration.--The Secretary may provide in
the lease under subsection (a) for the provision by the City
of in-kind consideration under the lease.
(e) Use of Money Rentals.--In such amounts as are provided
in advance in appropriation Acts, the Secretary may use money
rentals received by the Secretary under the lease authorized
under subsection (a) to carry out the following programs at
Department of the Navy installations that utilize the solid
waste landfill or landfills located on the leased property:
(1) Environmental programs, including natural resource
management programs, recycling programs, and pollution
prevention programs.
(2) Programs to improve the quality of military life,
including programs to improve military unaccompanied housing
and military family housing.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the lease under subsection (a) as the Secretary
considers appropriate to protect the interests of the United
States.
(g) Definitions.--In this section, the terms ``sludge'',
``solid waste'', and ``solid waste management'' have the
meanings given such terms in paragraphs (26A), (27), and
(28), respectively, of section 1004 of the Solid Waste
Disposal Act (42 U.S.C. 6903).

PART III--AIR FORCE CONVEYANCES

SEC. 2874. LAND ACQUISITION OR EXCHANGE, SHAW AIR FORCE BASE,
SOUTH CAROLINA.

(a) Land Acquisition.--By means of an exchange of property,
acceptance as a gift, or other means that do not require the
use of appropriated funds, the Secretary of the Air Force may
acquire all right, title, and interest in and to a parcel of
real property (together with any improvements thereon)
consisting of approximately 1,100 acres and located adjacent
to the eastern end of Shaw Air Force Base, South Carolina,
and extending to Stamey Livestock Road in Sumter County,
South Carolina.
(b) Land Exchange Authorized.--For purposes of acquiring
the real property described in subsection (a), the Secretary
may participate in a land exchange and convey all right,
title, and interest of the United States in and to a parcel
of real property in the possession of the Air Force if--
(1) the Secretary determines that the land exchange is in
the best interests of the Air Force; and
(2) the fair market value of the parcel to be conveyed by
the Secretary does not exceed the fair market value of the
parcel to be acquired by the Secretary.
(c) Determinations of Fair Market Value.--The Secretary
shall determine the fair market value of the parcels of real
property to be exchanged, accepted, or otherwise acquired
pursuant to subsection (a) and exchanged pursuant to
subsection (b). Such determinations shall be final.
(d) Reversion of Gift Conveyance.--If the Secretary
acquires the real property described in subsection (a) by way
of gift, the Secretary may accept in the deed of conveyance
terms or conditions that require that the land be reconveyed
to the donor, or the heirs of the donor, if Shaw Air Force
Base ceases operations and is closed.
(e) Descriptions of Property.--The exact acreage and legal
descriptions of the parcels of real property to be to be
exchanged, accepted, or otherwise acquired pursuant to
subsection (a) and exchanged pursuant to subsection (b) shall
be determined by a survey satisfactory to the Secretary.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the acquisition under subsection (a) or conveyance under
subsection (b) as the Secretary considers appropriate to
protect the interests of the United States.

SEC. 2875. LAND CONVEYANCE, ELMENDORF AIR FORCE BASE, ALASKA.

(a) Conveyance to Private Person Authorized.--The Secretary
of the Air Force may convey to such private person as the
Secretary considers appropriate, all right, title, and
interest of the United States in and to a parcel of real
property consisting of approximately 31.69 acres that is
located at Elmendorf Air Force Base, Alaska, and
identified in land lease W-95-507-ENG-58.
(b) Consideration.--As consideration for the conveyance
under subsection (a), the purchaser shall pay to the United
States an amount equal to the fair market value of the real
property to be conveyed, as determined by the Secretary. In
determining the fair market value of the real property, the
Secretary shall consider the property as encumbered by land
lease W-95-507-ENG-58, with an expiration date of June 13,
2024.
(c) Condition of Conveyance.--The conveyance authorized by
subsection (a) shall be subject to the condition that the
purchaser of the property--
(1) permit the lease of the apartment complex located on
the property by members of the Armed Forces stationed at
Elmendorf Air Force Base and their dependents; and
(2) maintain the apartment complex in a condition suitable
for such leases.
(d) Deposit of Proceeds.--The Secretary shall deposit the
amount received from the purchaser under subsection (b) in
the special account established under section 204(h)(2) of
the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 485(h)(2)).
(e) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory
to the Secretary. The cost of the survey shall be borne by
the purchaser of the real property.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under this section as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2876. LAND CONVEYANCE, RADAR BOMB SCORING SITE, FORSYTH,
MONTANA.

(a) Conveyance Authorized.--The Secretary of the Air Force
may convey, without consideration, to the City of Forsyth,
Montana (in this section referred to as the ``City''), all
right, title, and interest of the United States in and to the
parcel of property (including any improvements thereon)
consisting of approximately 58 acres located in Forsyth,
Montana, which has served as a support complex and
recreational facilities for the Radar Bomb Scoring Site,
Forsyth, Montana.
(b) Condition of Conveyance.--The conveyance under
subsection (a) shall be subject to the condition that the
City--
(1) utilize the property and recreational facilities
conveyed under that subsection for housing and recreation
purposes; or
(2) enter into an agreement with an appropriate public or
private entity to lease such property and facilities to that
entity for such purposes.
(c) Reversion.--If the Secretary determines at any time
that the property conveyed under subsection (a) is not being
utilized in accordance with paragraph (1) or paragraph (2) of
subsection (b), all right, title, and interest in and to the
conveyed property, including any improvements thereon, shall
revert to the United States and the United States shall have
the right of immediate entry onto the property.
(d) Description of Property.--The exact acreage and legal
description of the property conveyed under this section shall
be determined by a survey satisfactory to the Secretary. The
cost of the survey shall be borne by the City.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under this section as the Secretary
determines appropriate to protect the interests of the United
States.

SEC. 2877. LAND CONVEYANCE, RADAR BOMB SCORING SITE, POWELL,
WYOMING.

(a) Conveyance Authorized.--The Secretary of the Air Force
may convey, without consideration, to the Northwest College
Board of Trustees (in this section referred to as the
``Board''), all right, title, and interest of the United
States in and to a parcel of real property (including any
improvements thereon) consisting of approximately 24 acres
located in Powell, Wyoming, which has served as the location
of a support complex, recreational facilities, and housing
facilities for the Radar Bomb Scoring Site, Powell, Wyoming.
(b) Condition of Conveyance.--The conveyance authorized
under subsection (a) shall be subject to the condition that
the Board use the property conveyed under that subsection for
housing and recreation purposes and for such other purposes
as the Secretary and the Board jointly determine appropriate.
(c) Reversionary Interest.--During the five-year period
beginning on the date that the Secretary makes the conveyance
authorized under subsection (a), if the Secretary determines
that the conveyed property is not being used in accordance
with subsection (b), all right, title, and interest in and to
the conveyed property, including any improvements thereon,
shall revert to the United States and the United States shall
have the right of immediate entry onto the property.
(d) Description of Property.--The exact acreage and legal
description of the property conveyed under this section shall
be determined by a survey satisfactory to the Secretary. The
cost of the survey shall be borne by the Board.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under this section as the Secretary
considers appropriate to protect the interests of the United
States.

[[Page H468]]

SEC. 2878. LAND CONVEYANCE, AVON PARK AIR FORCE RANGE,
FLORIDA.

(a) Conveyance Authorized.--The Secretary of the Air Force
may convey, without consideration, to Highlands County,
Florida (in this section referred to as the ``County''), all
right, title, and interest of the United States in and to a
parcel of real property, together with any improvements
thereon, located within the boundaries of the Avon Park Air
Force Range near Sebring, Florida, which has previously
served as the location of a support complex and recreational
facilities for the Avon Park Air Force Range.
(b) Condition of Conveyance.--The conveyance authorized
under subsection (a) shall be subject to the condition that
the County, directly or through an agreement with an
appropriate public or private entity, use the conveyed
property, including the support complex and recreational
facilities, for operation of a juvenile or other correctional
facility.
(c) Reversionary Interest.--If the Secretary determines at
any time that the property conveyed under subsection (a) is
not being used in accordance with subsection (b), all right,
title, and interest in the property, including any
improvements thereon, shall revert to the United States, and
the United States shall have the right of immediate entry
onto the property.
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory
to the Secretary. The cost of the survey shall be borne by
the County.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under this section as the Secretary
considers appropriate to protect the interests of the United
States.
Subtitle E--Land Conveyances Involving Utilities

SEC. 2881. CONVEYANCE OF RESOURCE RECOVERY FACILITY, FORT
DIX, NEW JERSEY.

(a) Conveyance Authorized.--The Secretary of the Army may
convey to Burlington County, New Jersey (in this section
referred to as the ``County''), all right, title, and
interest of the United States in and to a parcel of real
property at Fort Dix, New Jersey, consisting of approximately
six acres and containing a resource recovery facility, known
as the Fort Dix resource recovery facility.
(b) Related Easements.--The Secretary may grant to the
County any easement that is necessary for access to and
operation of the resource recovery facility conveyed under
subsection (a).
(c) Requirement Relating to Conveyance.--The Secretary may
not carry out the conveyance of the resource recovery
facility authorized by subsection (a) unless the County
agrees to accept the facility in its existing condition at
the time of the conveyance.
(d) Conditions on Conveyance.--The conveyance of the
resource recovery facility authorized by subsection (a) is
subject to the following conditions:
(1) That the County provide refuse and steam service to
Fort Dix, New Jersey, at the rate established by the
appropriate Federal or State regulatory authority.
(2) That the County comply with all applicable
environmental laws and regulations (including any permit or
license requirements) relating to the resource recovery
facility.
(3) That the County assume full responsibility for
ownership, operation, maintenance, repair, and all regulatory
compliance requirements for the resource recovery facility.
(4) That the County not commence any expansion of the
resource recovery facility without approval of such expansion
by the Secretary.
(e) Description of the Property.--The exact acreage and
legal description of the real property to be conveyed under
subsection (a), and of any easements to be granted under
subsection (b), shall be determined by a survey satisfactory
to the Secretary. The cost of such survey shall be borne by
the County.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under subsection (a) and the grant of any
easement under subsection (b) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2882. CONVEYANCE OF WATER AND WASTEWATER TREATMENT
PLANTS, FORT GORDON, GEORGIA.

(a) Conveyance Authorized.--The Secretary of the Army may
convey to the city of Augusta, Georgia (in this section
referred to as the ``City''), all right, title, and interest
of the United States to several parcels of real property
located at Fort Gordon, Georgia, and consisting of
approximately seven acres each. The parcels are improved with
a water filtration plant, water distribution system with
storage tanks, sewage treatment plant, and sewage collection
system.
(b) Related Easements.--The Secretary may grant to the City
any easement that is necessary for access to the real
property conveyed under subsection (a) and operation of the
water and wastewater treatment plants and distribution and
collection systems conveyed under subsection (a).
(c) Requirement Relating to Conveyance.--The Secretary may
not carry out the conveyance of the water and wastewater
treatment plants and distribution and collection systems
authorized by subsection (a) unless the City agrees to accept
the water and wastewater treatment plants and distribution
and collection systems in their existing condition at the
time of the conveyance.
(d) Conditions on Conveyance.--The conveyance authorized by
subsection (a) is subject to the following conditions:
(1) That the City provide water and sewer service to Fort
Gordon, Georgia, at a rate established by the appropriate
Federal or State regulatory authority.
(2) That the City comply with all applicable environmental
laws and regulations (including any permit or license
requirements) regarding the real property conveyed under
subsec- tion (a).
(3) That the City assume full responsibility for ownership,
operation, maintenance, repair, and all regulatory compliance
requirements for the water and wastewater treatment plants
and distribution and collection systems.
(4) That the City not commence any expansion of the water
and wastewater treatment plants and distribution and
collection systems without approval of such expansion by the
Secretary.
(e) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a), and of any easements granted under subsection
(b), shall be determined by a survey satisfactory to the
Secretary. The cost of such survey shall be borne by the
City.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under subsection (a) and the grant of any
easement under subsection (b) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2883. CONVEYANCE OF ELECTRICITY DISTRIBUTION SYSTEM,
FORT IRWIN, CALIFORNIA.

(a) Conveyance Authorized.--The Secretary of the Army may
convey to the Southern California Edison Company, California
(in this section referred to as the ``Company''), all right,
title, and interest of the United States in and to the
electricity distribution system located at Fort Irwin,
California.
(b) Description of System and Conveyance.--The electricity
distribution system authorized to be conveyed under
subsection (a) consists of approximately 115 miles of
electricity distribution lines (including poles, switches,
reclosers, transformers, regulators, switchgears, and service
lines) and includes the equipment, fixtures, structures, and
other improvements the Federal Government utilizes to provide
electricity services at Fort Irwin. The system does not
include any real property.
(c) Related Easements.--The Secretary may grant to the
Company any easement that is necessary for access to and
operation of the electricity distribution system conveyed
under subsection (a).
(d) Requirement Relating to Conveyance.--The Secretary may
not carry out the electricity distribution system authorized
by subsection (a) unless the Company agrees to accept the
electricity distribution system in its existing condition at
the time of the conveyance.
(e) Conditions on Conveyance.--The conveyance authorized by
subsection (a) is subject to the following conditions:
(1) That the Company provide electricity service to Fort
Irwin, California, at a rate established by the appropriate
Federal or State regulatory authority.
(2) That the Company comply with all applicable
environmental laws and regulations (including any permit or
license requirements) regarding the electricity distribution
system.
(3) That the Company assume full responsibility for
ownership, operation, maintenance, repair, and all regulatory
compliance requirements for the electricity distribution
system.
(4) That the Company not commence any expansion of the
electricity distribution system without approval of such
expansion by the Secretary.
(f) Description of Easement.--The exact acreage and legal
description of any easement granted under subsection (c)
shall be determined by a survey satisfactory to the
Secretary. The cost of such survey shall be borne by the
Company.
(g) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under subsection (a) and the grant of any
easement under subsection (c) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2884. CONVEYANCE OF WATER TREATMENT PLANT, FORT PICKETT,
VIRGINIA.

(a) Authority To Convey.--(1) The Secretary of the Army may
convey to the Town of Blackstone, Virginia (in this section
referred to as the ``Town''), all right, title, and interest
of the United States in and to the property described in
paragraph (2).
(2) The property referred to in paragraph (1) is the
following property located at Fort Pickett, Virginia:
(A) A parcel of real property consisting of approximately
10 acres, including a reservoir and improvements thereon, the
site of the Fort Pickett water treatment plant.
(B) Any equipment, fixtures, structures, or other
improvements (including any water transmission lines, water
distribution and service lines, fire hydrants, water pumping

[[Page H469]]
stations, and other improvements) not located on the parcel described
in subparagraph (A) that are jointly identified by the
Secretary and the Town as owned and utilized by the Federal
Government in order to provide water to and distribute water
at Fort Pickett.
(b) Related Easements.--The Secretary may grant to the Town
the following easements relating to the conveyance of the
property authorized by subsection (a):
(1) Such easements, if any, as the Secretary and the Town
jointly determine are necessary in order to provide access to
the water distribution system referred to in paragraph (2) of
such subsection for maintenance, safety, and other purposes.
(2) Such easements, if any, as the Secretary and the Town
jointly determine are necessary in order to provide access to
the finished water lines from the system to the Town.
(3) Such rights of way appurtenant, if any, as the
Secretary and the Town jointly determine are necessary in
order to satisfy requirements imposed by any Federal, State,
or municipal agency relating to the maintenance of a buffer
zone around the water distribution system.
(c) Water Rights.--The Secretary shall grant to the Town as
part of the conveyance under subsection (a) all right, title,
and interest of the United States in and to any water of the
Nottoway River, Virginia, that is connected with the
reservoir referred to in paragraph (2)(A) of such subsection.
The grant of such water rights shall not impair the right
that any other local jurisidiction may have to withdraw water
from the Nottoway River, on or after the date of the
enactment of this Act, pursuant to the law of the
Commonwealth of Virginia.
(d) Requirements Relating to Conveyance.--(1) The Secretary
may not carry out the conveyance of the water distribution
system authorized under subsection (a) unless the Town agrees
to accept the system in its existing condition at the time of
the conveyance.
(2) The Secretary shall complete any environmental removal
or remediation required under the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C.
9601 et seq.) with respect to the system to be conveyed under
this section before carrying out the conveyance.
(e) Conditions on Conveyance.--The conveyance authorized in
subsection (a) shall be subject to the following conditions:
(1) That the Town reserve for provision to Fort Pickett,
and provide to Fort Pickett on demand, not less than
1,500,000 million gallons per day of treated water from the
water distribution system.
(2) That the Town provide water to and distribute water at
Fort Pickett at a rate established by the appropriate Federal
or State regulatory authority.
(3) That the Town maintain and operate the water
distribution system in compliance with all applicable Federal
and State environmental laws and regulations (including any
permit and license requirements).
(f) Description of Property.--The exact legal description
of the property to be conveyed under subsection (a), of any
easements granted under subsection (b), and of any water
rights granted under subsection (c) shall be determined by a
survey and other means satisfactory to the Secretary. The
cost of any survey or other services performed at the
direction of the Secretary under the authority in the
preceding sentence shall be borne by the Town.
(g) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance authorized under subsection (a), the
easements granted under subsection (b), and the water rights
granted under subsection (c) that the Secretary considers
appropriate to protect the interests of the United States.
Subtitle F--Other Matters

SEC. 2891. AUTHORITY TO USE FUNDS FOR CERTAIN EDUCATIONAL
PURPOSES.

Section 2008 of title 10, United States Code, is amended by
striking out ``section 10'' and all that follows through the
period at the end and inserting in lieu thereof
``construction, as defined in section 8013(3) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7713(3)), or to carry out section 8008 of such Act (20 U.S.C.
7708), relating to the provision of assistance to certain
school facilities under the impact aid program.''.

SEC. 2892. DEPARTMENT OF DEFENSE LABORATORY REVITALIZATION
DEMONSTRATION PROGRAM.

(a) Program Authorized.--The Secretary of Defense may carry
out a program (to be known as the ``Department of Defense
Laboratory Revitalization Demonstration Program'') for the
revitalization of Department of Defense laboratories. Under
the program, the Secretary may carry out minor military
construction projects in accordance with subsection (b) and
other applicable law to improve Department of Defense
laboratories covered by the program.
(b) Increased Maximum Amounts Applicable to Minor
Construction Projects.--For purpose of any military
construction project carried out under the program--
(1) the amount provided in the second sentence of
subsection (a)(1) of section 2805 of title 10, United States
Code, shall be deemed to be $3,000,000;
(2) the amount provided in subsection (b)(1) of such
section shall be deemed to be $1,500,000; and
(3) the amount provided in subsection (c)(1)(B) of such
section shall be deemed to be $1,000,000.
(c) Program Requirements.--(1) Not later than 30 days
before commencing the program, the Secretary shall--
(A) designate the Department of Defense laboratories at
which construction may be carried out under the program; and
(B) establish procedures for the review and approval of
requests from such laboratories to carry out such
construction.
(2) The laboratories designated under paragraph (1)(A) may
not include Department of Defense laboratories that are
contractor owned.
(3) The Secretary shall notify Congress of the laboratories
designated under paragraph (1)(A).
(d) Report.--Not later than February 1, 1998, the Secretary
shall submit to Congress a report on the program. The report
shall include the Secretary's conclusions and recommendations
regarding the desirability of extending the authority set
forth in subsection (b) to cover all Department of Defense
laboratories.
(e) Exclusivity of Program.--Nothing in this section may be
construed to limit any other authority provided by law for
any military construction project at a Department of Defense
laboratory covered by the program.
(f) Definitions.--In this section:
(1) The term ``laboratory'' includes--
(A) a research, engineering, and development center;
(B) a test and evaluation activity owned, funded, and
operated by the Federal Government through the Department of
Defense; and
(C) a supporting facility of a laboratory.
(2) The term ``supporting facility'', with respect to a
laboratory, means any building or structure that is used in
support of research, development, test, and evaluation at the
laboratory.
(g) Expiration of Authority.--The Secretary may not
commence a construction project under the program after
September 30, 1998.

SEC. 2893. AUTHORITY FOR PORT AUTHORITY OF STATE OF
MISSISSIPPI TO USE NAVY PROPERTY AT NAVAL
CONSTRUCTION BATTALION CENTER, GULFPORT,
MISSISSIPPI.

(a) Joint Use Agreement Authorized.--The Secretary of the
Navy may enter into an agreement with the Port Authority of
the State of Mississippi (in this section referred to as the
``Port Authority''), under which the Port Authority may use
real property comprising up to 50 acres located at the Naval
Construction Battalion Center, Gulfport, Mississippi (in this
section referred to as the ``Center'').
(b) Term of Agreement.--The agreement authorized under
subsection (a) may be for an initial period of not more than
15 years. Under the agreement, the Secretary shall provide
the Port Authority with an option to extend the agreement for
at least three additional periods of five years each.
(c) Conditions on Use.--The agreement authorized under
subsection (a) shall require the Port Authority--
(1) to suspend operations under the agreement in the event
Navy contingency operations are conducted at the Center; and
(2) to use the property covered by the agreement in a
manner consistent with Navy operations conducted at the
Center.
(d) Consideration.--(1) As consideration for the use of the
property covered by the agreement under subsection (a), the
Port Authority shall pay to the Navy an amount equal to the
fair market rental value of the property, as determined by
the Secretary taking into consideration the Port Authority's
use of the property.
(2) The Secretary may include a provision in the agreement
requiring the Port Authority--
(A) to pay the Navy an amount (as determined by the
Secretary) to cover the costs of replacing at the Center any
facilities vacated by the Navy on account of the agreement or
to construct suitable replacement facilities for the Navy;
and
(B) to pay the Navy an amount (as determined by the
Secretary) for the costs of relocating Navy operations from
the vacated facilities to the replacement facilities.
(e) Congressional Notification.--The Secretary may not
enter into the agreement authorized by subsection (a) until
the end of the 21-day period beginning on the date on which
the Secretary submits to Congress a report containing an
explanation of the terms of the proposed agreement and a
description of the consideration that the Secretary expects
to receive under the agreement.
(f) Use of Payment.--(1) In such amounts as are provided in
advance in appropriation Acts, the Secretary may use amounts
paid under subsection (d)(1) to pay for general supervision,
administration, and overhead expenses and for improvement,
maintenance, repair, construction, or restoration of the
roads, railways, and facilities serving the Center.
(2) In such amounts as are provided in advance in
appropriation Acts, the Secretary may use amounts paid under
subsection (d)(2) to pay for constructing new facilities, or
making modifications to existing facilities, that are
necessary to replace facilities vacated by the Navy on
account of the agreement under subsection (a) and for
relocating operations of the Navy from the vacated facilities
to replacement facilities.

[[Page H470]]

(g) Construction by Port Authority.--The Secretary may
authorize the Port Authority to demolish existing facilities
located on the property covered by the agreement under
subsection (a) and, consistent with the restriction specified
in subsection (c)(2), construct new facilities on the
property for joint use by the Port Authority and the Navy.
(h) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the agreement authorized under subsection (a) as the
Secretary considers appropriate to protect the interests of
the United States.

SEC. 2894. PROHIBITION ON JOINT USE OF NAVAL AIR STATION AND
MARINE CORPS AIR STATION, MIRAMAR, CALIFORNIA.

The Secretary of the Navy may not enter into any agreement
that provides for or permits civil aircraft to regularly use
Naval Air Station or Marine Corps Air Station, Miramar,
California.

SEC. 2895. REPORT REGARDING ARMY WATER CRAFT SUPPORT
FACILITIES AND ACTIVITIES.

Not later than February 15, 1996, the Secretary of the Army
shall submit to Congress a report setting forth--
(1) the location, assets, and mission of each Army
facility, active or reserve component, that supports water
transportation operations;
(2) an infrastructure inventory and utilization rate of
each Army facility supporting water transportation
operations;
(3) options for consolidating these operations to reduce
overhead; and
(4) actions that can be taken to respond affirmatively to
requests from the residents of Marcus Hook, Pennsylvania, to
close the Army Reserve facility located in Marcus Hook and
make the facility available for use by the community.

SEC. 2896. RESIDUAL VALUE REPORTS.

(a) Reports Required.--The Secretary of Defense, in
coordination with the Director of the Office of Management
and Budget, shall submit to the congressional defense
committees status reports on the results of residual value
negotiations between the United States and Germany. Such
status reports shall be submitted within 30 days after the
receipt of such reports by the Office of Management and
Budget.
(b) Content of Status Reports.--The status reports required
by subsection (a) shall include the following information:
(1) The estimated residual value of United States capital
value and improvements to facilities in Germany that the
United States has turned over to Germany.
(2) The actual value obtained by the United States for each
facility or installation turned over to Germany.
(3) The reasons for any difference between the estimated
and actual value obtained.

SEC. 2897. SENSE OF CONGRESS AND REPORT REGARDING FITZSIMONS
ARMY MEDICAL CENTER, COLORADO.

(a) Findings.--Congress makes the following findings:
(1) Fitzsimons Army Medical Center in Aurora, Colorado, was
approved for closure in 1995 under the Defense Base Closure
and Realignment Act of 1990 (part A of title XXIX of Public
Law 101-510; 10 U.S.C. 2687 note).
(2) The University of Colorado Health Sciences Center and
the University of Colorado Hospital Authority are in urgent
need of space to maintain their ability to deliver health
care to meet the growing demand for their services.
(3) Reuse of the Fitzsimons Army Medical Center at the
earliest opportunity would provide significant benefit to the
cities of Aurora, Colorado, and Denver, Colorado.
(4) Reuse of the Fitzsimons Army Medical Center by the
communities in the vicinity of the center will ensure that
the center is fully utilized, thereby providing a benefit to
such communities.
(b) Sense of Congress.--It is the sense of Congress that--
(1) determinations as to the use by other departments and
agencies of the Federal Government of buildings and property
at military installations approved for closure under the
Defense Base Closure and Realignment Act of 1990, including
Fitzsimons Army Medical Center, Colorado, should be completed
as soon as practicable;
(2) the Secretary of Defense should consider the expedited
transfer of appropriate facilities (including facilities that
remain operational) at such installations to the
redevelopment authorities for such installations in order to
ensure continuity of use of such facilities after the closure
of such installations, in particular, the Secretary should
consider the expedited transfer of the Fitzsimons Army
Medical Center because of the significant preparation
underway by the redevelopment authority concerned;
(3) the Secretary should not enter into leases with
redevelopment authorities for facilities at such
installations until the Secretary determines that such leases
fall within the categorical exclusions established by the
Secretary pursuant to the National Environmental Policy Act
(42 U.S.C. 4321 et seq.).
(c) Report.--(1) Not later than 180 days after the date of
the enactment of this Act, the Secretary of Defense shall
submit to the congressional defense committees a report on
the closure and redevelopment of Fitzsimons Army Medical
Center.
(2) The report shall include the following:
(A) The results of the determinations as to the use of
buildings and property at Fitzsimons Army Medical Center by
other departments and agencies of the Federal Government
under section 2905(b)(1) of the Defense Base Closure and
Realignment Act of 1990.
(B) A description of any actions taken to expedite such
determinations.
(C) A discussion of any impediments raised as a result of
such determinations to the transfer or lease of Fitzsimons
Army Medical Center.
(D) A description of any actions taken by the Secretary to
lease Fitzsimons Army Medical Center to the redevelopment
authority.
(E) The results of any environmental reviews under the
National Environmental Policy Act in which such a lease would
fall into the categorical exclusions established by the
Secretary of the Army.
(F) The results of the environmental baseline survey
regarding Fitzsimons Army Medical Center and a finding of
suitability or nonsuitability.
TITLE XXIX--LAND CONVEYANCES INVOLVING JOLIET ARMY AMMUNITION PLANT,
ILLINOIS

SEC. 2901. SHORT TITLE.

This title may be cited as the ``Illinois Land Conservation
Act of 1995''.

SEC. 2902. DEFINITIONS.

For purposes of this title, the following definitions
apply:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the United States Environmental Protection
Agency.
(2) Agricultural purposes.--The term ``agricultural
purposes'' means the use of land for row crops, pasture, hay,
and grazing.
(3) Arsenal.--The term ``Arsenal'' means the Joliet Army
Ammunition Plant located in the State of Illinois.
(4) Arsenal land use concept.--The term ``Arsenal land use
concept'' means the land use proposals that were developed
and unanimously approved on May 30, 1995, by the Joliet
Arsenal Citizen Planning Commission.
(5) CERCLA.--The term ``CERCLA'' means the Comprehensive
Environmental Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601 et seq.).
(6) Environmental law.--The term ``environmental law''
means all applicable Federal, State, and local laws,
regulations, and requirements related to protection of human
health, natural and cultural resources, or the environment.
Such term includes CERCLA, the Solid Waste Disposal Act (42
U.S.C. 6901 et seq.), the Federal Water Pollution Control Act
(33 U.S.C. 1251 et seq.), the Clean Air Act (42 U.S.C. 7401
et seq.), the Federal Insecticide, Fungicide, and Rodenticide
Act (7 U.S.C. 136 et seq.), the Toxic Substances Control Act
(15 U.S.C. 2601 et seq.), and the Safe Drinking Water Act (42
U.S.C. 300f et seq.).
(7) Hazardous substance.--The term ``hazardous substance''
has the meaning given such term by section 101(14) of CERCLA
(42 U.S.C. 9601(14)).
(8) MNP.--The term ``MNP'' means the Midewin National
Tallgrass Prairie established pursuant to section 2914 and
managed as a part of the National Forest System.
(9) Person.--The term ``person'' has the meaning given such
term by section 101(21) of CERCLA (42 U.S.C. 9601(21)).
(10) Pollutant or contaminant.--The term ``pollutant or
contaminant'' has the meaning given such term by section
101(33) of CERCLA (42 U.S.C. 9601(33)).
(11) Release.--The term ``release'' has the meaning given
such term by section 101(22) of CERCLA (42 U.S.C. 9601(22)).
(12) Response action.--The term ``response action'' has the
meaning given the term ``response'' by section 101(25) of
CERCLA (42 U.S.C. 9601(25)).
Subtitle A--Conversion of Joliet Army Ammunition Plant to Midewin
National Tallgrass Prairie

SEC. 2911. PRINCIPLES OF TRANSFER.

(a) Land Use Plan.--The Congress ratifies in principle the
proposals generally identified by the land use plan which was
developed by the Joliet Arsenal Citizen Planning Commission
and unanimously approved on May 30, 1995.
(b) Transfer Without Reimbursement.--The area constituting
the Midewin National Tallgrass Prairie shall be transferred,
without reimbursement, to the Secretary of Agriculture.
(c) Management of MNP.--Management by the Secretary of
Agriculture of those portions of the Arsenal transferred to
the Secretary under this title shall be in accordance with
sections 2914 and 2915 regarding the Midewin National
Tallgrass Prairie.
(d) Security Measures.--The Secretary of the Army and the
Secretary of Agriculture shall each provide and maintain
physical and other security measures on such portion of the
Arsenal as is under the administrative jurisdiction of such
Secretary, unless the Secretary of the Army and the Secretary
of Agriculture agree otherwise. Such security measures (which
may include fences and natural barriers) shall include
measures to prevent members of the public from gaining
unauthorized access to such portions of the Arsenal as are
under the administrative jurisdiction of such Secretary and
that may endanger health or safety.
(e) Cooperative Agreements.--The Secretary of the Army, the
Secretary of Agriculture, and the Administrator are
individually and collectively authorized to enter into
cooperative agreements and memoranda of understanding among
each other and with other affected Federal agencies, State
and

[[Page H471]]
local governments, private organizations, and corporations to carry out
the purposes for which the Midewin National Tallgrass Prairie
is established.
(f) Interim Activities of the Secretary of Agriculture.--
Prior to transfer and subject to such reasonable terms and
conditions as the Secretary of the Army may prescribe, the
Secretary of Agriculture may enter upon the Arsenal property
for purposes related to planning, resource inventory, fish
and wildlife habitat manipulation (which may include
prescribed burning), and other such activities consistent
with the purposes for which the Midewin National Tallgrass
Prairie is established.

SEC. 2912. TRANSFER OF MANAGEMENT RESPONSIBILITIES AND
JURISDICTION OVER ARSENAL.

(a) General Rule for Transfer of Jurisdiction.--
(1) Transfer required subject to response actions.--Subject
to subsection (d), not later than 270 days after the date of
the enactment of this title, the Secretary of the Army shall
transfer, without reimbursement, to the Secretary of
Agriculture those portions of the Arsenal that--
(A) are identified on the map described in subsection
(e)(1) as appropriate for transfer under this subsection to
the Secretary of Agriculture; and
(B) the Secretary of the Army and the Administrator concur
in finding that all response actions have been taken under
CERCLA necessary to protect human health and the environment
with respect to any hazardous substance remaining on the
property.
(2) Effect of less than complete transfer.--If the
concurrence requirement in paragraph (1)(B) results in the
transfer, within such 270-day period, of less than all of the
Arsenal property covered by paragraph (1)(A), the Secretary
of the Army and the Secretary of Agriculture shall enter into
a memorandum of understanding providing for the performance
by the Secretary of the Army of the additional response
actions necessary to allow fulfillment of the concurrence
requirement with respect to such Arsenal property. The
memorandum of understanding shall be entered into within 60
days of the end of such 270-day period and shall include a
schedule for the completion of the additional response
actions as soon as practicable. Subject to subsection (d),
the Secretary of the Army shall transfer Arsenal property
covered by this paragraph to the Secretary of Agriculture as
soon as possible after the Secretary of the Army and the
Administrator concur that all additional response actions
have been taken under CERCLA necessary to protect human
health and the environment with respect to any hazardous
substance remaining on the property. The Secretary of the
Army may make transfers under this paragraph on a parcel-by-
parcel basis.
(3) Rule of construction regarding concurrences.--For the
purpose of reaching the concurrences required by this
subsection and subsection (b), if a response action requires
construction and installation of an approved remedial design,
the response action shall be considered to have been taken
when the construction and installation of the approved
remedial design is completed and the remedy is demonstrated
to the satisfaction of the Administrator to be operating
properly and successfully.
(b) Special Transfer Requirements for Certain Parcels.--
Subject to subsection (d), the Secretary of the Army shall
transfer, without reimbursement, to the Secretary of
Agriculture the Arsenal property known as LAP Area Sites L2,
L3, and L5 and Manufacturing Area Site 1. The transfer shall
occur as soon as possible after the Secretary of the Army and
the Administrator concur that all response actions have been
taken under CERCLA necessary to protect human health and the
environment with respect to any hazardous substance remaining
on the property. The Secretary of the Army may make transfers
under this subsection on a parcel-by-parcel basis.
(c) Documentation of Environmental Condition of Parcels;
Assessment of Required Actions Under Other Environmental
Laws.--
(1) Documentation.--The Secretary of the Army and the
Administrator shall provide to the Secretary of Agriculture
all documentation and information that exists on the date the
documentation and information is provided relating to the
environmental condition of the Arsenal property proposed for
transfer under subsection (a) or (b), including documentation
that supports the finding that all response actions have been
taken under CERCLA necessary to protect human health and the
environment with respect to any hazardous substance remaining
on the property.
(2) Assessment.--The Secretary of the Army shall provide to
the Secretary of Agriculture an assessment, based on
information in existence at the time the assessment is
provided, indicating what further action, if any, is required
under any environmental law (other than CERCLA) on the
Arsenal property proposed for transfer under subsection (a)
or (b).
(3) Time for submission of documentation and assessment.--
The documentation and assessments required to be submitted to
the Secretary of Agriculture under this subsection shall be
submitted--
(A) in the case of the transfers required by subsection
(a), not later than 210 days after the date of the enactment
of this title; and
(B) in the case of the transfers required by subsection
(b), not later than 60 days before the earliest date on which
the property could be transferred.
(4) Submission of additional information.--The Secretary of
the Army and the Administrator shall have a continuing
obligation to provide to the Secretary of Agriculture any
additional information regarding the environmental condition
of property to be transferred under subsection (a) or (b) as
such information becomes available.
(d) Effect of Environmental Assessment.--
(1) Authority of secretary of agriculture to decline
immediate transfer.--If a parcel of Arsenal property to be
transferred under subsection (a) or (b) includes property for
which the assessment under subsection (c)(2) concludes
further action is required under any environmental law (other
than CERCLA), the Secretary of Agriculture may decline
immediate transfer of the parcel. With respect to such a
parcel, the Secretary of the Army and the Secretary of
Agriculture shall enter into a memorandum of understanding
providing for the performance by the Secretary of the Army of
the required actions identified in the Army assessment. The
memorandum of understanding shall be entered into within 90
days after the date on which the Secretary of Agriculture
declines immediate transfer of the parcel and shall include a
schedule for the completion of the required actions as soon
as practicable.
(2) Eventual transfer.--In the case of a parcel of Arsenal
property that the Secretary of Agriculture declines immediate
transfer under paragraph (1), the Secretary may accept
transfer of the parcel at any time after the original finding
with respect to the parcel that all response actions have
been taken under CERCLA necessary to protect human health and
the environment with respect to any hazardous substance
remaining on the property. The Secretary of Agriculture
shall accept transfer of the parcel as soon as possible
after the date on which all required further actions
identified in the assessment have been taken and the terms
of any memorandum of understanding have been satisfied.
(e) Identification of Arsenal Property for Transfer.--
(1) Map of proposed transfers.--The lands subject to
transfer to the Secretary of Agriculture under subsections
(a) and (b) and section 2916 are depicted on the map dated
September 22, 1995, which is on file and available for public
inspection at the Office of the Chief of the Forest Service
and the Office of the Assistant Secretary of the Army for
Installations, Logistics and the Environment.
(2) Method of effecting transfer.--The Secretary of the
Army shall effect the transfer of jurisdiction of Arsenal
property under subsections (a) and (b) and section 2916 by
publication of notices in the Federal Register. The Secretary
of Agriculture shall give prior concurrence to the
publication of such notices. Each notice published in the
Federal Register shall refer to the parcel being transferred
by legal description, references to maps or surveys, or other
forms of description mutually acceptable to the Secretary of
the Army and the Secretary of Agriculture. The Secretary of
the Army shall provide, without reimbursement, to the
Secretary of Agriculture copies of all surveys and land title
information on lands transferred under this section or
section 2916.
(f) Surveys.--All costs of necessary surveys for the
transfer of jurisdiction of Arsenal property from the
Secretary of the Army to the Secretary of Agriculture shall
be borne by the Secretary of Agriculture.

SEC. 2913. RESPONSIBILITY AND LIABILITY.

(a) Continued Liability of Secretary of the Army.--The
transfers of Arsenal property under sections 2912 and 2916,
and the requirements of such sections, shall not in any way
affect the responsibilities and liabilities of the Secretary
of the Army specified in this section. The Secretary of the
Army shall retain any obligation or other liability at the
Arsenal that the Secretary of the Army has under CERCLA or
other environmental laws. Following transfer of a portion of
the Arsenal under this subtitle, the Secretary of the Army
shall be accorded any easement or access to the property that
may be reasonably required by the Secretary to carry out the
obligation or satisfy the liability.
(b) Special Protections for Secretary of Agriculture.--The
Secretary of Agriculture shall not be liable under any
environmental law for matters which are related directly or
indirectly to activities of the Secretary of the Army at the
Arsenal or any party acting under the authority of the
Secretary of the Army at the Arsenal, including any of the
following:
(1) Costs or performance of response actions required under
CERCLA at or related to the Arsenal.
(2) Costs, penalties, fines, or performance of actions
related to noncompliance with any environmental law at or
related to the Arsenal or related to the presence, release,
or threat of release of any hazardous substance, pollutant or
contaminant, hazardous waste, or hazardous material of any
kind at or related to the Arsenal, including contamination
resulting from migration of a hazardous substance, pollutant
or contaminant, hazardous waste, hazardous material, or
petroleum products or their derivatives.
(3) Costs or performance of actions necessary to remedy
noncompliance or another problem specified in paragraph (2).

[[Page H472]]

(c) Liability of Other Persons.--Nothing in this title
shall be construed to effect, modify, amend, repeal, alter,
limit or otherwise change, directly or indirectly, the
responsibilities or liabilities under any environmental law
of any person (including the Secretary of Agriculture),
except as provided in subsection (b) with respect to the
Secretary of Agriculture.
(d) Payment of Response Action Costs.--A Federal agency
that had or has operations at the Arsenal resulting in the
release or threatened release of a hazardous substance or
pollutant or contaminant for which that agency would be
liable under any environmental law, subject to the provisions
of this subtitle, shall pay the costs of related response
actions and shall pay the costs of related actions to
remediate petroleum products or the derivatives of the
products, including motor oil and aviation fuel.
(e) Consultation.--
(1) Responsibility of secretary of agriculture.--The
Secretary of Agriculture shall consult with the Secretary of
the Army with respect to the management by the Secretary of
Agriculture of real property included in the Midewin National
Tallgrass Prairie subject to any response action or other
action at the Arsenal being carried out by or under the
authority of the Secretary of the Army under any
environmental law. The Secretary of Agriculture shall consult
with the Secretary of the Army prior to undertaking any
activities on the Midewin National Tallgrass Prairie that may
disturb the property to ensure that such activities will not
exacerbate contamination problems or interfere with
performance by the Secretary of the Army of response actions
at the property.
(2) Responsibility of secretary of the army.--In carrying
out response actions at the Arsenal, the Secretary of the
Army shall consult with the Secretary of Agriculture to
ensure that such actions are carried out in a manner
consistent with the purposes for which the Midewin National
Tallgrass Prairie is established, as specified in section
2914(c), and the other provisions of sections 2914 and 2915.

SEC. 2914. ESTABLISHMENT AND ADMINISTRATION OF MIDEWIN
NATIONAL TALLGRASS PRAIRIE.

(a) Establishment.--On the effective date of the initial
transfer of jurisdiction of portions of the Arsenal to the
Secretary of Agriculture under section 2912(a), the Secretary
of Agriculture shall establish the Midewin National Tallgrass
Prairie. The MNP shall--
(1) be administered by the Secretary of Agriculture; and
(2) consist of the real property so transferred and such
other portions of the Arsenal subsequently transferred under
section 2912(b) or 2916 or acquired under section 2914(d).
(b) Administration.--
(1) In general.--The Secretary of Agriculture shall manage
the Midewin National Tallgrass Prairie as a part of the
National Forest System in accordance with this title and the
laws, rules, and regulations pertaining to the National
Forest System, except that the Bankhead-Jones Farm Tenant Act
of 1937 (7 U.S.C. 1010-1012) shall not apply to the MNP.
(2) Initial management activities.--In order to expedite
the administration and public use of the Midewin National
Tallgrass Prairie, the Secretary of Agriculture may conduct
management activities at the MNP to effectuate the purposes
for which the MNP is established, as set forth in subsection
(c), in advance of the development of a land and resource
management plan for the MNP.
(3) Land and resource management plan.--In developing a
land and resource management plan for the Midewin National
Tallgrass Prairie, the Secretary of Agriculture shall consult
with the Illinois Department of Natural Resources and local
governments adjacent to the MNP and provide an opportunity
for public comment. Any parcel transferred to the Secretary
of Agriculture under this title after the development of a
land and resource management plan for the MNP may be managed
in accordance with such plan without need for an amendment to
the plan.
(c) Purposes of the Midewin National Tallgrass Prairie.--
The Midewin National Tallgrass Prairie is established to be
managed for National Forest System purposes, including the
following:
(1) To manage the land and water resources of the MNP in a
manner that will conserve and enhance the native populations
and habitats of fish, wildlife, and plants.
(2) To provide opportunities for scientific, environmental,
and land use education and research.
(3) To allow the continuation of agricultural uses of lands
within the MNP consistent with section 2915(b).
(4) To provide a variety of recreation opportunities that
are not inconsistent with the preceding purposes.
(d) Other Land Acquisition for MNP.--
(1) Availability of land acquisition funds.--
Notwithstanding section 7 of the Land and Water Conservation
Fund Act of 1965 (16 U.S.C. 460l-9), the Secretary of
Agriculture may use monies appropriated from the Land and
Water Conservation Fund established under section 2 of such
Act (16 U.S.C. 460l-5) for the acquisition of lands and
interests in land for inclusion in the Midewin National
Tallgrass Prairie.
(2) Acquisition of lands.--The Secretary of Agriculture may
acquire lands or interests therein for inclusion in the
Midewin National Tallgrass Prairie by donation, purchase, or
exchange, except that the acquisition of private lands for
inclusion in the MNP shall be on a willing seller basis only.
(e) Cooperation With States, Local Governments and Other
Entities.--In the management of the Midewin National
Tallgrass Prairie, the Secretary of Agriculture is authorized
and encouraged to cooperate with appropriate Federal, State
and local governmental agencies, private organizations and
corporations. Such cooperation may include cooperative
agreements as well as the exercise of the existing
authorities of the Secretary under the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2101 et seq.) and the
Forest and Rangeland Renewable Resources Research Act of 1978
(16 U.S.C. 1641 et seq.). The objects of such cooperation may
include public education, land and resource protection, and
cooperative management among government, corporate, and
private landowners in a manner which furthers the purposes
for which the Midewin National Tallgrass Prairie is
established.

SEC. 2915. SPECIAL MANAGEMENT REQUIREMENTS FOR MIDEWIN
NATIONAL TALLGRASS PRAIRIE.

(a) Prohibition Against the Construction of New Through
Roads.--No new construction of any highway, public road, or
any part of the interstate system, whether Federal, State, or
local, shall be permitted through or across any portion of
the Midewin National Tallgrass Prairie. Nothing in this title
shall preclude construction and maintenance of roads for use
within the MNP, the granting of authorizations for utility
rights-of-way under applicable Federal law, or such access as
is necessary. Nothing in this title shall preclude necessary
access by the Secretary of the Army for purposes of
restoration and cleanup as provided in this title.
(b) Agricultural Leases and Special Use Authorizations.--
Within the Midewin National Tallgrass Prairie, use of the
lands for agricultural purposes shall be permitted subject to
the following terms and conditions:
(1) If at the time of transfer of jurisdiction under
section 2912 or 2916 there exists any lease issued by the
Secretary of the Army or the Secretary of Defense for
agricultural purposes upon the parcel transferred, the
Secretary of Agriculture shall issue a special use
authorization to supersede the lease. The terms of the
special use authorization shall be identical in substance to
the lease that the special use authorization is superseding,
including the expiration date and any payments owed the
United States. On issuance of the special use authorization,
the lease shall become void.
(2) In addition to the authority provided in paragraph (1),
the Secretary of Agriculture may issue special use
authorizations to persons for use of the Midewin National
Tallgrass Prairie for agricultural purposes. Special use
authorizations issued pursuant to this paragraph shall
include terms and conditions as the Secretary of Agriculture
may deem appropriate.
(3) No agricultural special use authorization shall be
issued for agricultural purposes which has a term extending
beyond the date 20 years from the date of the enactment of
this title, except that nothing in this title shall preclude
the Secretary of Agriculture from issuing agricultural
special use authorizations or grazing permits which are
effective after twenty years from the date of enactment of
this title for purposes primarily related to erosion control,
provision for food and habitat for fish and wildlife, or
other resource management activities consistent with the
purposes of the Midewin National Tallgrass Prairie.
(c) Treatment of Rental Fees.--Monies received under a
special use authorization issued under subsection (b) shall
be subject to distribution to the State of Illinois and
affected counties pursuant to the Act of May 23, 1908, and
section 13 of the Act of March 1, 1911 (16 U.S.C. 500). All
monies not distributed pursuant to such Acts shall be covered
into the Treasury and shall constitute a special fund (to be
known as the ``MNP Rental Fee Account''). The Secretary of
Agriculture may use amounts in the fund, until expended and
without fiscal year limitation, to cover the cost to the
United States of prairie improvement work at the Midewin
National Tallgrass Prairie. Any amounts in the fund that the
Secretary of Agriculture determines to be in excess of the
cost of doing such work shall be transferred, upon such
determination, to miscellaneous receipts, Forest Service
Fund, as a National Forest receipt of the fiscal year in
which the transfer is made.
(d) User Fees.--The Secretary of Agriculture is authorized
to charge reasonable fees for the admission, occupancy, and
use of the Midewin National Tallgrass Prairie and may
prescribe a fee schedule providing for reduced or a waiver of
fees for persons or groups engaged in authorized activities
including those providing volunteer services, research, or
education. The Secretary shall permit admission, occupancy,
and use at no additional charge for persons possessing a
valid Golden Eagle Passport or Golden Age Passport.
(e) Salvage of Improvements.--The Secretary of Agriculture
may sell for salvage value any facilities and improvements
which have been transferred to the Secretary pursuant to this
title.
(f) Treatment of User Fees and Salvage Receipts.--Monies
collected pursuant to subsections (d) and (e) shall be
covered into the Treasury and constitute a special fund (to
be known as the ``Midewin National Tallgrass Prairie
Restoration Fund''). The Secretary of Agriculture may use
amounts

[[Page H473]]
in the fund, in such amounts as are provided in advance in
appropriation Acts, for restoration and administration of the
Midewin National Tallgrass Prairie, including construction of
a visitor and education center, restoration of ecosystems,
construction of recreational facilities (such as trails),
construction of administrative offices, and operation and
maintenance of the MNP. The Secretary of Agriculture shall
include the MNP among the areas under the jurisdiction of the
Secretary selected for inclusion in any cost recovery or any
pilot program of the Secretary for the collection, use, and
distribution of user fees.

SEC. 2916. SPECIAL TRANSFER RULES FOR CERTAIN ARSENAL PARCELS
INTENDED FOR MNP.

(a) Description of Parcels.--The following areas of the
Arsenal may be transferred under this section:
(1) Study Area 2, explosive burning ground.
(2) Study Area 3, flashing ground.
(3) Study Area 4, lead azide area.
(4) Study Area 10, toluene tank farms.
(5) Study Area 11, landfill.
(6) Study Area 12, sellite manufacturing area.
(7) Study Area 14, former pond area.
(8) Study Area 15, sewage treatment plan.
(9) Study Area L1, load assemble packing area, group 61.
(10) Study Area L4, landfill area.
(11) Study Area L7, group 1.
(12) Study Area L8, group 2.
(13) Study Area L9, group 3.
(14) Study Area L10, group 3A.
(15) Study Area L14, group 4.
(16) Study Area L15, group 5.
(17) Study Area L18, group 8.
(18) Study Area L19, group 9.
(19) Study Area L33, PVC area.
(20) Any other lands proposed for transfer as depicted on
the map described in section 2912(e)(1) and not otherwise
specifically identified for transfer under this subtitle.
(b) Information Regarding Environmental Condition of
Parcels; Assessment of Required Actions Under Other
Environmental Laws.--
(1) Information.--Not later than 180 days after the date on
which the Secretary of the Army and the Administrator concur
in finding that, with respect to a parcel of Arsenal property
described in subsection (a), all response actions have been
taken under CERCLA necessary to protect human health and the
environment with respect to any hazardous substance remaining
on the parcel, the Secretary of the Army and the
Administrator shall provide to the Secretary of Agriculture
all information that exists on such date regarding the
environmental condition of the parcel and the implementation
of any response action, including information regarding the
effectiveness of the response action.
(2) Assessment.--At the same time as information is
provided under paragraph (1) with regard to a parcel of
Arsenal property described in subsection (a), the Secretary
of the Army shall provide to the Secretary of Agriculture an
assessment, based on information in existence at the time the
assessment is provided, indicating what further action, if
any, is required under any environmental law (other than
CERCLA) with respect to the parcel.
(3) Submission of additional information.--The Secretary of
the Army and the Administrator shall have a continuing
obligation to provide to the Secretary of Agriculture any
additional information regarding the environmental condition
of a parcel of the Arsenal property described in subsection
(a) as such information becomes available.
(c) Offer of Transfer.--Not later than 180 days after the
date on which information is provided under subsection (b)(1)
with regard to a parcel of the Arsenal property described in
subsection (a), the Secretary of the Army shall offer the
Secretary of Agriculture the option of accepting a transfer
of the parcel, without reimbursement, to be added to the
Midewin National Tallgrass Prairie. The transfer shall be
subject to the terms and conditions of this subtitle,
including the liability provisions contained in section 2913.
The Secretary of Agriculture has the option to accept or
decline the offered transfer. The transfer of property under
this section may be made on a parcel-by-parcel basis.
(d) Effect of Environmental Assessment.--
(1) Authority of secretary of agriculture to decline
transfer.--If a parcel of Arsenal property described in
subsection (a) includes property for which the assessment
under subsection (b)(2) concludes further action is required
under any other environmental law, the Secretary of
Agriculture may decline any transfer of the parcel.
Alternatively, the Secretary of Agriculture may decline
immediate transfer of the parcel and enter into a memorandum
of understanding with the Secretary of the Army providing for
the performance by the Secretary of the Army of the required
actions identified in the Army assessment with respect to the
parcel. The memorandum of understanding shall be entered into
within 90 days, or such later date as the Secretaries may
establish, after the date on which the Secretary of
Agriculture declines immediate transfer of the parcel and
shall include a schedule for the completion of the required
actions as soon as practicable.
(2) Eventual transfer.--The Secretary of Agriculture may
accept or decline at any time for any reason the transfer of
a parcel covered by this section. However, if the Secretary
of Agriculture and the Secretary of the Army enter into a
memorandum of understanding under paragraph (1) providing
for transfer of the parcel, the Secretary of Agriculture
shall accept transfer of the parcel as soon as possible
after the date on which all required further actions
identified in the assessment have been taken and the
requirements of the memorandum of understanding have been
satisfied.
(e) Rule of Construction Regarding Concurrences.--For the
purpose of the reaching the concurrence required by
subsection (b)(1), if a response action requires construction
and installation of an approved remedial design, the response
action shall be considered to have been taken when the
construction and installation of the approved remedial design
is completed and the remedy is demonstrated to the
satisfaction of the Administrator to be operating properly
and successfully.
(f) Inclusions and Exceptions.--
(1) Inclusions.--The parcels of Arsenal property described
in subsection (a) shall include all associated inventoried
buildings and structures as identified in the Joliet Army
Ammunition Plant Plantwide Building and Structures Report and
the contaminate study sites for both the manufacturing and
load assembly and packing sites of the Arsenal as shown in
the Dames and Moore Final Report, Phase 2 Remedial
Investigation Manufacturing (MFG) Area Joliet Army Ammunition
Plant, Joliet, Illinois (May 30, 1993, Contract No. DAAA15-
90-D-0015 task order No. 6 prepared for the United States
Army Environmental Center).
(2) Exception.--The parcels described in subsection (a)
shall not include the property at the Arsenal designated for
transfer or conveyance under subtitle B.
Subtitle B--Other Land Conveyances Involving Joliet Army Ammunition
Plant

SEC. 2921. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL FOR
A NATIONAL CEMETERY.

(a) Conveyance Authorized.--Subject to section 2931, the
Secretary of the Army may transfer, without reimbursement, to
the Secretary of Veterans Affairs the parcel of real property
at the Arsenal described in subsection (b) for use as a
national cemetery operated as part of the National Cemetery
System of the Department of Veterans Affairs under chapter 24
of title 38, United States Code.
(b) Description of Property.--The real property authorized
to be transferred under subsection (a) is a parcel of real
property at the Arsenal consisting of approximately 982
acres, the approximate legal description of which includes
part of sections 30 and 31, Jackson Township, Township 34
North, Range 10 East, and part of sections 25 and 36,
Channahon Township, Township 34 North, Range 10 East, Will
County, Illinois, as depicted in the Arsenal land use
concept.
(c) Security Measures.--The Secretary of Veterans Affairs
shall provide and maintain physical and other security
measures on the real property transferred under subsection
(a). Such security measures (which may include fences and
natural barriers) shall include measures to prevent members
of the public from gaining unauthorized access to the portion
of the Arsenal that is under the administrative jurisdiction
of the Secretary of Veterans Affairs and that may endanger
health or safety.
(d) Surveys.--All costs of necessary surveys for the
transfer of jurisdiction of Arsenal properties from the
Secretary of the Army to the Secretary of Veterans Affairs
shall be borne solely by the Secretary of Veterans Affairs.

SEC. 2922. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL FOR
A COUNTY LANDFILL.

(a) Conveyance Authorized.--Subject to section 2931, the
Secretary of the Army may convey, without compensation, to
Will County, Illinois, all right, title, and interest of
the United States in and to the parcel of real property at
the Arsenal described in subsection (b), which shall be
operated as a landfill by the County.
(b) Description of Property.--The real property authorized
to be conveyed under subsection (a) is a parcel of real
property at the Arsenal consisting of approximately 455
acres, the approximate legal description of which includes
part of sections 8, 9, 16, and 17, Florence Township,
Township 33 North, Range 10 East, Will County, Illinois, as
depicted in the Arsenal land use concept.
(c) Condition on Conveyance.--The conveyance shall be
subject to the condition that the Department of the Army, the
Department of Veterans Affairs, and the Department of
Agriculture (or their agents or assigns) may use the landfill
established on the real property conveyed under subsection
(a) for the disposal of construction debris, refuse, and
other materials related to any restoration and cleanup of
Arsenal property. Such use shall be subject to applicable
environmental laws and at no cost to the Federal Government.
(d) Reversionary Interest.--If, at the end of the five-year
period beginning on the date of the conveyance under
subsection (a), the Secretary of Agriculture determines that
the conveyed property is not opened for operation as a
landfill, then, at the option of the Secretary of
Agriculture, all right, title, and interest in and to the
property, including improvements thereon, shall revert to the
United States. Upon any such reversion, the property shall be
included in the Midewin

[[Page H474]]
National Tallgrass Prairie. In the event the United States exercises
its option to cause the property to revert, the United States
shall have the right of immediate entry onto the property.
(e) Information Regarding Environmental Conditions.--At the
request of the Secretary of Agriculture, Will County, the
Secretary of the Army, and the Administrator shall provide to
the Secretary of Agriculture all information in their
possession at the time of the request regarding the
environmental condition of the real property to be conveyed
under this section. The liability and responsibility of any
person under any environmental law shall remain unchanged
with respect to the landfill, except as provided in this
title, including section 2913.
(f) Surveys.--All costs of necessary surveys for the
conveyance of real property under this section shall be borne
by Will County, Illinois.
(g) Additional Terms and Conditions.--The Secretary of the
Army may require such additional terms and conditions in
connection with the conveyance under this section as the
Secretary of the Army considers appropriate to protect the
interests of the United States.

SEC. 2923. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL FOR
INDUSTRIAL PARKS.

(a) Conveyance Authorized.--Subject to section 2931, the
Secretary of the Army may convey to the State of Illinois,
all right, title, and interest of the United States in and to
the parcels of real property at the Arsenal described in
subsection (b), which shall be used as industrial parks to
replace all or a part of the economic activity lost at the
Arsenal.
(b) Description of Property.--The real property at the
Arsenal authorized to be transferred under subsection (a)
consists of the following parcels:
(1) A parcel of approximately 1,900 acres, the approximate
legal description of which includes part of section 30,
Jackson Township, Township 34 North, Range 10 East, and
sections or parts of sections 24, 25, 26, 35, and 36,
Township 34 North, Range 9 East, in Channahon Township, an
area of 9.77 acres around the Des Plaines River Pump Station
located in the southeast quarter of section 15, Township 34
North, Range 9 East of the Third Principal Meridian, in
Channahon Township, and an area of 511 feet by 596 feet
around the Kankakee River Pump Station in the Northwest
Quarter of section 5, Township 33 North, Range 9 East, east
of the Third Principal Meridian in Wilmington Township,
containing 6.99 acres, located along the easterly side of the
Kankakee Cut-Off in Will County, Illinois, as depicted in the
Arsenal land use concept, and the connecting piping to the
northern industrial site, as described by the United States
Army Report of Availability, dated 13 December 1993.
(2) A parcel of approximately 1,100 acres, the approximate
legal description of which includes part of sections 16, 17,
and 18 in Florence Township, Township 33 North, Range 10
East, Will County, Illinois, as depicted in the Arsenal land
use concept.
(c) Consideration.--
(1) Delay in payment of consideration.--After the end of
the 20-year period beginning on the date on which the
conveyance under subsection (a) is completed, the State of
Illinois shall pay to the United States an amount equal to
fair market value of the conveyed property as of the time of
the conveyance.
(2) Effect of reconveyance by state.--If the State of
Illinois reconveys all or any part of the conveyed property
during such 20-year period, the State shall pay to the United
States an amount equal to the fair market value of the
reconveyed property as of the time of the reconveyance,
excluding the value of any improvements made to the property
by the State.
(3) Determination of fair market value.--The Secretary of
the Army shall determine fair market value in accordance with
Federal appraisal standards and procedures.
(4) Treatment of leases.--The Secretary of the Army may
treat a lease of the property within such 20-year period as a
reconveyance if the Secretary determines that the lease is
being used to avoid application of paragraph (2).
(5) Deposit of proceeds.--The Secretary of the Army shall
deposit any proceeds received under this subsection in the
special account established pursuant to section 204(h)(2) of
the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 485(h)(2)).
(d) Conditions of Conveyance.--
(1) Redevelopment authority.--The conveyance under
subsection (a) shall be subject to the condition that the
Governor of the State of Illinois, in consultation with the
Mayor of the Village of Elwood, Illinois, and the Mayor of
the City of Wilmington, Illinois, establish a redevelopment
authority to be responsible for overseeing the development of
the industrial parks on the conveyed property.
(2) Time for establishment.--To satisfy the condition
specified in paragraph (1), the redevelopment authority shall
be established within one year after the date of the
enactment of this title.
(e) Surveys.--All costs of necessary surveys for the
conveyance of real property under this section shall be borne
by the State of Illinois.
(f) Additional Terms and Conditions.--The Secretary of the
Army may require such additional terms and conditions in
connection with the conveyance under this section as the
Secretary considers appropriate to protect the interests of
the United States.
Subtitle C--Miscellaneous Provisions

SEC. 2931. DEGREE OF ENVIRONMENTAL CLEANUP.

(a) In General.--Nothing in this title shall be construed
to restrict or lessen the degree of cleanup at the Arsenal
required to be carried out under provisions of any
environmental law.
(b) Response Action.--The establishment of the Midewin
National Tallgrass Prairie under subtitle A and the
additional real property transfers or conveyances authorized
under subtitle B shall not restrict or lessen in any way any
response action or degree of cleanup under CERCLA or other
environmental law, or any action required under any
environmental law to remediate petroleum products or their
derivatives (including motor oil and aviation fuel), required
to be carried out under the authority of the Secretary of the
Army at the Arsenal and surrounding areas.
(c) Environmental Quality of Property.--Any contract for
sale, deed, or other transfer of real property under subtitle
B shall be carried out in compliance with all applicable
provisions of section 120(h) of CERCLA and other
environmental laws.

SEC. 2932. RETENTION OF PROPERTY USED FOR ENVIRONMENTAL
CLEANUP.

(a) Retention of Certain Property.--Unless and until the
Arsenal property described in this subsection is actually
transferred or conveyed under this title or other applicable
law, the Secretary of the Army may retain jurisdiction,
authority, and control over real property at the Arsenal to
be used for--
(1) water treatment;
(2) the treatment, storage, or disposal of any hazardous
substance, pollutant or contaminant, hazardous material, or
petroleum products or their derivatives;
(3) other purposes related to any response action at the
Arsenal; and
(4) other actions required at the Arsenal under any
environmental law to remediate contamination or conditions of
noncompliance with any environmental law.
(b) Conditions.--The Secretary of the Army shall consult
with the Secretary of Agriculture regarding the
identification and management of the real property retained
under this section and ensure that activities carried out on
that property are consistent, to the extent practicable, with
the purposes for which the Midewin National Tallgrass Prairie
is established, as specified in section 2914(c), and with the
other provisions of sections 2914 and 2915.
(c) Priority of Response Actions.--In the case of any
conflict between management of the property by the Secretary
of Agriculture and any response action required under CERCLA,
or any other action required under any other environmental
law, including actions to remediate petroleum products or
their derivatives, the response action or other action shall
take priority.
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
OTHER AUTHORIZATIONS
TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS
Subtitle A--National Security Programs Authorizations

SEC. 3101. WEAPONS ACTIVITIES.

(a) Stockpile Stewardship.--Subject to subsection (d),
funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1996 for stockpile
stewardship in carrying out weapons activities necessary for
national security programs in the amount of $1,567,175,000,
to be allocated as follows:
(1) For core stockpile stewardship, $1,159,708,000, to be
allocated as follows:
(A) For operation and maintenance, $1,078,403,000.
(B) 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),
$81,305,000, to be allocated as follows:
Project 96-D-102, stockpile stewardship facilities
revitalization, Phase VI, various locations, $2,520,000.
Project 96-D-103, ATLAS, Los Alamos National Laboratory,
Los Alamos, New Mexico, $8,400,000.
Project 96-D-104, processing and environmental technology
laboratory (PETL), Sandia National Laboratories, Albuquerque,
New Mexico, $1,800,000.
Project 96-D-105, contained firing facility addition,
Lawrence Livermore National Laboratory, Livermore,
California, $6,600,000.
Project 95-D-102, Chemical and Metallurgy Research Building
upgrades project, Los Alamos National Laboratory, Los Alamos,
New Mexico, $9,940,000.
Project 94-D-102, nuclear weapons research, development,
and testing facilities revitalization, Phase V, various
locations, $12,200,000.
Project 93-D-102, Nevada support facility, North Las Vegas,
Nevada, $15,650,000.
Project 90-D-102, nuclear weapons research, development,
and testing facilities revitalization, Phase III, various
locations, $6,200,000.
Project 88-D-106, nuclear weapons research, development,
and testing facilities revitalization, Phase II, various
locations, $17,995,000.
(2) For inertial fusion, $240,667,000, to be allocated as
follows:

[[Page H475]]

(A) For operation and maintenance, $203,267,000.
(B) For the following plant project (including maintenance,
restoration, planning, construction, acquisition, and
modification of facilities, and land acquisition related
thereto), $37,400,000:
Project 96-D-111, national ignition facility, location to
be determined, $37,400,000.
(3) For technology transfer and education, $160,000,000.
(4) For Marshall Islands, $6,800,000.
(b) Stockpile Management.--Subject to subsection (d), funds
are hereby authorized to be appropriated to the Department of
Energy for fiscal year 1996 for stockpile management in
carrying out weapons activities necessary for national
security programs in the amount of $2,025,083,000, to be
allocated as follows:
(1) For operation and maintenance, $1,911,458,000.
(2) For plant projects (including maintenance, restoration,
planning, construction, acquisition, modification of
facilities, and the continuation of projects authorized in
prior years, and land acquisition related thereto),
$113,625,000, to be allocated as follows:
Project 96-D-122, sewage treatment quality upgrade (STQU),
Pantex Plant, Amarillo, Texas, $600,000.
Project 96-D-123, retrofit heating, ventilation, and air
conditioning and chillers for ozone protection, Y-12 Plant,
Oak Ridge, Tennessee, $3,100,000.
Project 96-D-125, Washington measurements operations
facility, Andrews Air Force Base, Camp Springs, Maryland,
$900,000.
Project 96-D-126, tritium loading line modifications,
Savannah River Site, South Carolina, $12,200,000.
Project 95-D-122, sanitary sewer upgrade, Y-12 Plant, Oak
Ridge, Tennessee, $6,300,000.
Project 94-D-124, hydrogen fluoride supply system, Y-12
Plant, Oak Ridge, Tennessee, $8,700,000.
Project 94-D-125, upgrade life safety, Kansas City Plant,
Kansas City, Missouri, $5,500,000.
Project 94-D-127, emergency notification system, Pantex
Plant, Amarillo, Texas, $2,000,000.
Project 94-D-128, environmental safety and health
analytical laboratory, Pantex Plant, Amarillo, Texas,
$4,000,000.
Project 93-D-122, life safety upgrades, Y-12 Plant, Oak
Ridge, Tennessee, $7,200,000.
Project 93-D-123, complex-21, various locations,
$41,065,000.
Project 88-D-122, facilities capability assurance program,
various locations, $8,660,000.
Project 88-D-123, security enhancement, Pantex Plant,
Amarillo, Texas, $13,400,000.
(c) Program Direction.--Subject to subsection (d), funds
are hereby authorized to be appropriated to the Department of
Energy for fiscal year 1996 for program direction in carrying
out weapons activities necessary for national security
programs in the amount of $115,000,000.
(d) Adjustments.--The total amount authorized to be
appropriated pursuant to this section is the sum of the
amounts authorized to be appropriated in subsections (a)
through (c) reduced by the sum of--
(1) $37,200,000, for savings resulting from procurement
reform; and
(2) $209,744,000, for use of prior year balances.

SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

(a) Environmental Restoration.--Subject to subsection (h),
funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1996 for environmental
restoration in carrying out environmental restoration and
waste management activities necessary for national security
programs in the amount of $1,635,973,000.
(b) Waste Management.--Subject to subsection (h), funds are
hereby authorized to be appropriated to the Department of
Energy for fiscal year 1996 for waste management in carrying
out environmental restoration and waste management activities
necessary for national security programs in the amount of
$2,470,598,000, to be allocated as follows:
(1) For operation and maintenance, $2,295,994,000.
(2) For plant projects (including maintenance, restoration,
planning, construction, acquisition, modification of
facilities, and the continuation of projects authorized in
prior years, and land acquisition related thereto),
$174,604,000, to be allocated as follows:
Project 96-D-406, spent nuclear fuels canister storage and
stabilization facility, Richland, Washington, $42,000,000.
Project 96-D-407, mixed waste/low-level waste treatment
projects, Rocky Flats Plant, Golden, Colorado, $2,900,000.
Project 96-D-408, waste management upgrades, various
locations, $5,615,000.
Project 95-D-402, install permanent electrical service,
Waste Isolation Pilot Plant, Carlsbad, New Mexico,
$4,314,000.
Project 95-D-405, industrial landfill V and construction/
demolition landfill VII, Phase III, Y-12 Plant, Oak Ridge,
Tennessee, $4,600,000.
Project 95-D-406, road 5-01 reconstruction, area 5, Nevada
Test Site, Nevada, $1,023,000.
Project 95-D-407, 219-S secondary containment upgrade,
Richland Washington, $1,000,000.
Project 94-D-400, high explosive wastewater treatment
system, Los Alamos National Laboratory, Los Alamos, New
Mexico, $4,445,000.
Project 94-D-402, liquid waste treatment system, Nevada
Test Site, Nevada, $282,000.
Project 94-D-404, Melton Valley storage tank capacity
increase, Oak Ridge National Laboratory, Oak Ridge,
Tennessee, $11,000,000.
Project 94-D-407, initial tank retrieval systems, Richland,
Washington, $12,000,000.
Project 94-D-411, solid waste operation complex, Richland,
Washington, $6,606,000.
Project 93-D-178, building 374 liquid waste treatment
facility, Rocky Flats Plant, Golden, Colorado, $3,900,000.
Project 93-D-181, radioactive liquid waste line
replacement, Richland, Washington, $5,000,000.
Project 93-D-182, replacement of cross-site transfer
system, Richland, Washington, $19,795,000.
Project 93-D-187, high-level waste removal from filled
waste tanks, Savannah River Site, South Carolina,
$19,700,000.
Project 92-D-171, mixed waste receiving and storage
facility, Los Alamos National Laboratory, Los Alamos, New
Mexico, $1,105,000.
Project 92-D-188, waste management environmental, safety
and health (ES&H) and compliance activities, various
locations, $1,100,000.
Project 90-D-172, aging waste transfer lines, Richland,
Washington, $2,000,000.
Project 90-D-177, RWMC transuranic (TRU) waste
characterization and storage facility, Idaho National
Engineering Laboratory, Idaho, $1,428,000.
Project 90-D-178, TSA retrieval enclosure, Idaho National
Engineering Laboratory, Idaho, $2,606,000.
Project 89-D-173, tank farm ventilation upgrade, Richland,
Washington, $800,000.
Project 89-D-174, replacement high-level waste evaporator,
Savannah River Site, Aiken, South Carolina, $11,500,000.
Project 86-D-103, decontamination and waste treatment
facility, Lawrence Livermore National Laboratory, Livermore,
California, $8,885,000.
Project 83-D-148, nonradioactive hazardous waste
management, Savannah River Site, Aiken, South Carolina,
$1,000,000.
(c) Technology Development.--Subject to subsection (h),
funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1996 for technology
development in carrying out environmental restoration and
waste management activities necessary for national security
programs in the amount of $440,510,000.
(d) Transportation Management.--Subject to subsection (h),
funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1996 for transportation
management in carrying out environmental restoration and
waste management activities necessary for national security
programs in the amount of $13,158,000.
(e) Nuclear Materials and Facilities Stabilization.--
Subject to subsection (h), funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1996
for nuclear materials and facilities stabilization in
carrying out environmental restoration and waste management
activities necessary for national security programs in the
amount of $1,561,854,000 to be allocated as follows:
(1) For operation and maintenance, $1,447,108,000.
(2) For plant projects (including maintenance, restoration,
planning, construction, acquisition, modification of
facilities, and the continuation of projects authorized in
prior years, and land acquisition related thereto),
$114,746,000, to be allocated as follows:
Project 96-D-457, thermal treatment system, Richland
Washington, $1,000,000.
Project 96-D-458, site drainage control, Mound Plant,
Miamisburg, Ohio, $885,000.
Project 96-D-461, electrical distribution upgrade, Idaho
National Engineering Laboratory, Idaho, $1,539,000.
Project 96-D-464, electrical and utility systems upgrade,
Idaho Chemical Processing Plant, Idaho National Engineering
Laboratory, Idaho, $4,952,000.
Project 96-D-468, residue elimination project, Rocky Flats
Plant, Golden, Colorado, $33,100,000.
Project 96-D-471, chlorofluorocarbon heating, ventilation,
and air conditioning and chiller retrofit, Savannah River
Site, Aiken, South Carolina, $1,500,000.
Project 95-D-155, upgrade site road infrastructure,
Savannah River Site, South Carolina, $2,900,000.
Project 95-D-156, radio trunking system, Savannah River
Site, South Carolina, $6,000,000.
Project 95-D-454, 324 facility compliance/renovation,
Richland, Washington, $3,500,000.
Project 95-D-456, security facilities upgrade, Idaho
Chemical Processing Plant, Idaho National Engineering
Laboratory, Idaho, $8,382,000.
Project 94-D-122, underground storage tanks, Rocky Flats
Plant, Golden, Colorado, $5,000,000.
Project 94-D-401, emergency response facility, Idaho
National Engineering Laboratory, Idaho, $5,074,000.
Project 94-D-412, 300 area process sewer piping upgrade,
Richland, Washington, $1,000,000.
Project 94-D-415, medical facilities, Idaho National
Engineering Laboratory, Idaho, $3,601,000.
Project 94-D-451, infrastructure replacement, Rocky Flats
Plant, Golden, Colorado, $2,940,000.

[[Page H476]]

Project 93-D-147, domestic water system upgrade, Phase I
and II, Savannah River Site, Aiken, South Carolina,
$7,130,000.
Project 92-D-123, plant fire/security alarm systems
replacement, Rocky Flats Plant, Golden, Colorado, $9,560,000.
Project 92-D-125, master safeguards and security agreement/
materials surveillance task force security upgrades, Rocky
Flats Plant, Golden, Colorado, $7,000,000.
Project 92-D-181, fire and life safety improvements, Idaho
National Engineering Laboratory, Idaho, $6,883,000.
Project 91-D-127, criticality alarm and plant annunciation
utility replacement, Rocky Flats Plant, Golden, Colorado,
$2,800,000.
(f) Compliance and Program Coordination.--Subject to
subsection (h), funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1996
for compliance and program coordination in carrying out
environmental restoration and waste management activities
necessary for national security programs in the amount of
$46,251,000, to be allocated as follows:
(1) For operation and maintenance, $31,251,000.
(2) For the following plant project (including maintenance,
restoration, planning, construction, acquisition,
modification of facilities, and the continuation of a project
authorized in prior years, and land acquisition related
thereto):
Project 95-E-600, hazardous materials training center,
Richland, Washington, $15,000,000.
(g) Analysis, Education, and Risk Management.--Subject to
subsection (h), funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1996
for analysis, education, and risk management in carrying out
environmental restoration and waste management activities
necessary for national security programs in the amount of
$78,522,000.
(h) Adjustments.--The total amount authorized to be
appropriated pursuant to this section is the sum of the
amounts specified in subsections (a) through (g) reduced by
the sum of--
(1) $652,334,000, for use of prior year balances; and
(2) $37,000,000, for Savannah River Pension Refund.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

(a) Other Defense Activities.--Subject to subsection (b),
funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1996 for other defense
activities in carrying out programs necessary for national
security in the amount of $1,351,975,600, to be allocated as
follows:
(1) For verification and control technology, $428,205,600,
to be allocated as follows:
(A) For nonproliferation and verification research and
development, $224,905,000.
(B) For arms control, $160,964,600.
(C) For intelligence, $42,336,000.
(2) For nuclear safeguards and security, $83,395,000.
(3) For security investigations, $20,000,000.
(4) For security evaluations, $14,707,000.
(5) For the Office of Nuclear Safety, $17,679,000.
(6) For worker and community transition assistance,
$82,500,000.
(7) For fissile materials disposition, $70,000,000.
(8) For emergency management, $23,321,000.
(9) For naval reactors development, $682,168,000, to be
allocated as follows:
(A) For operation and infrastructure, $652,568,000.
(B) For plant projects (including maintenance, restoration,
planning, construction, acquisition, modification of
facilities, and the continuation of projects authorized in
prior years, and land acquisition related thereto),
$29,600,000, to be allocated as follows:
Project GPN-101, general plant projects, various locations,
$6,600,000.
Project 95-D-200, laboratory systems and hot cell upgrades,
various locations, $11,300,000.
Project 95-D-201, advanced test reactor radioactive waste
system upgrades, Idaho National Engineering Laboratory,
Idaho, $4,800,000.
Project 93-D-200, engineering services facilities, Knolls
Atomic Power Laboratory, Niskayuna, New York, $3,900,000.
Project 90-N-102, expended core facility dry cell project,
Naval Reactors Facility, Idaho, $3,000,000.
(b) Adjustment.--The total amount authorized to be
appropriated pursuant to this section is the amount
authorized to be appropriated in subsection (a) reduced by
$70,000,000, for use of prior year balances.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

Funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1996 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 $248,400,000.
Subtitle B--Recurring General Provisions

SEC. 3121. REPROGRAMMING.

(a) In General.--Until the Secretary of Energy submits to
the congressional defense committees the report referred to
in subsection (b) and a period of 30 days has elapsed after
the date on which such committees receive the report, the
Secretary may not use amounts appropriated pursuant to this
title for any 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 full and complete statement of the
action proposed to be taken and the facts and circumstances
relied upon in support of such proposed action.
(2) In the computation of the 30-day period under
subsection (a), there shall be excluded any day on which
either House of Congress is not in session because of an
adjournment of more than 3 days to a day certain.
(c) Limitations.--(1) In no event may the total amount of
funds obligated pursuant to this title exceed the total
amount authorized to be appropriated by this title.
(2) Funds appropriated pursuant to this title may not be
used for an item for which Congress has specifically denied
funds.

SEC. 3122. LIMITS ON 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
construction of any general plant project authorized by this
title, the estimated cost of the project is revised because
of unforeseen cost variations and the revised cost of the
project exceeds $2,000,000, the Secretary shall immediately
furnish a complete report to the congressional defense
committees explaining the reasons for the cost variation.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

(a) In General.--(1) Except as provided in paragraph (2),
construction on a construction project may not be started or
additional 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 sections 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
congressional defense committees a report on the actions and
the circumstances making such action necessary; and
(B) a period of 30 days has elapsed after the date on which
the report is received by the committees.
(3) In the computation of the 30-day period under paragraph
(2), there shall be excluded any day on which either House of
Congress is not in session because of an adjournment of more
than 3 days to a day certain.
(b) Exception.--Subsection (a) shall not apply to any
construction 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 available for the same purposes and for the same
period as the authorizations 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 available for the same purposes and for
the same period as the authorization to which the amounts are
transferred.
(2) Not more than five percent of any such authorization
may be transferred between authorizations under paragraph
(1). No such authorization may be increased or decreased by
more than five percent by a transfer under such paragraph.
(3) The authority provided by this section to transfer
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 the Committee on National Security of the House of
Representatives 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

[[Page H477]]
national security program of the Department of Energy, the Secretary of
Energy shall complete a conceptual design for that project.
(2) If the estimated cost of completing a conceptual design
for a construction project exceeds $3,000,000, the Secretary
shall submit to Congress a request for funds for the
conceptual design before submitting a request for funds for
the construction project.
(3) The requirement in paragraph (1) does not apply to a
request for funds--
(A) for a construction project the total estimated cost of
which is less than $2,000,000; or
(B) for emergency planning, design, and construction
activities under section 3126.
(b) Authority for Construction Design.--(1) Within the
amounts authorized by this title, the Secretary of Energy may
carry out construction design (including architectural and
engineering 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
connection 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 committees a report on the activities
that the Secretary intends to carry out under this section
and the circumstances making such activities necessary.
(c) Specific Authority.--The requirement of section
3125(b)(2) does not apply to emergency planning, design, and
construction activities conducted under this section.

SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY 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 appropriation Act, amounts
appropriated for operation and maintenance or for plant
projects may remain available until expended.
Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. AUTHORITY TO CONDUCT PROGRAM RELATING TO FISSILE
MATERIALS.

(a) Authority.--The Secretary of Energy may conduct
programs designed to improve the protection, control, and
accountability of fissile materials in Russia.
(b) Semi-Annual Reports on Obligation of Funds.--(1) Not
later than 30 days after the date of the enactment of this
Act, and thereafter not later than April 1 and October 1 of
each year, the Secretary of Energy shall submit to Congress a
report on each obligation during the preceding six months of
funds appropriated for a program described in subsection
(a).
(2) Each such report shall specify--
(A) the activities and forms of assistance for which the
Secretary of Energy has obligated funds;
(B) the amount of the obligation;
(C) the activities and forms of assistance for which the
Secretary anticipates obligating funds during the six months
immediately following the report, and the amount of each such
anticipated obligation; and
(D) the projected involvement (if any) of any department or
agency of the United States (in addition to the Department of
Energy) and of the private sector of the United States in the
activities and forms of assistance for which the Secretary of
Energy has obligated funds referred to in subparagraph (A).

SEC. 3132. NATIONAL IGNITION FACILITY.

None of the funds authorized to be appropriated pursuant to
this title for construction of the National Ignition Facility
may be obligated until--
(1) the Secretary of Energy determines that the
construction of the National Ignition Facility will not
impede the nuclear nonproliferation objectives of the United
States; and
(2) the Secretary of Energy notifies the congressional
defense committees of that determination.

SEC. 3133. TRITIUM PRODUCTION PROGRAM.

(a) Establishment of Program.--The Secretary of Energy
shall establish a tritium production program that is capable
of meeting the tritium requirements of the United States for
nuclear weapons. In carrying out the tritium production
program, the Secretary shall--
(1) complete the tritium supply and recycling environmental
impact statement in preparation by the Secretary as of the
date of the enactment of this Act; and
(2) assess alternative means for tritium production,
including production through--
(A) types of new and existing reactors, including
multipurpose reactors (such as advanced light water reactors
and gas turbine gas-cooled reactors) capable of meeting both
the tritium production requirements and the plutonium
disposition requirements of the United States for nuclear
weapons;
(B) an accelerator; and
(C) multipurpose reactor projects carried out by the
private sector and the Government.
(b) Funding.--Of funds authorized to be appropriated to the
Department of Energy pursuant to section 3101, not more than
$50,000,000 shall be available for the tritium production
program established pursuant to subsection (a).
(c) Location of Tritium Production Facility.--The Secretary
shall locate any new tritium production facility of the
Department of Energy at the Savannah River Site, South
Carolina.
(d) Cost-Benefit Analysis.--(1) The Secretary shall include
in the statements referred to in paragraph (2) a comparison
of the costs and benefits of carrying out two projects for
the separate performance of the tritium production mission of
the Department and the plutonium disposition mission of the
Department with the costs and benefits of carrying out one
multipurpose project for the performance of both such
missions.
(2) The statements referred to in paragraph (1) are--
(A) the environmental impact statement referred to in
subsection (a)(1);
(B) the plutonium disposition environmental impact
statement in preparation by the Secretary as of the date of
the enactment of this Act; and
(C) assessments related to the environmental impact
statements referred to in subparagraphs (A) and (B).
(e) Report.--Not later than 45 days after the date of the
enactment of this Act, the Secretary shall submit to the
Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives a report
on the tritium production program established pursuant to
subsection (a). The report shall include a specification of--
(1) the planned expenditures of the Department during
fiscal year 1996 for any of the alternative means for tritium
production assessed under subsection (a)(2);
(2) the amount of funds required to be expended by the
Department, and the program milestones (including feasibility
demonstrations) required to be met, during fiscal years 1997
through 2001 to ensure tritium production beginning not later
than 2005 that is adequate to meet the tritium requirements
of the United States for nuclear weapons; and
(3) the amount of such funds to be expended and such
program milestones to be met during such fiscal years to
ensure such tritium production beginning not later than 2011.
(f) Tritium Targets.--Of the funds made available pursuant
to subsection (b), not more than $5,000,000 shall be
available for the Idaho National Engineering Laboratory for
the test and development of nuclear reactor tritium targets
for the types of reactors assessed under subsection
(a)(2)(A).

SEC. 3134. PAYMENT OF PENALTIES.

The Secretary of Energy may pay to the Hazardous Substance
Superfund established under section 9507 of the Internal
Revenue Code of 1986 (26 U.S.C. 9507), from funds
appropriated to the Department of Energy for environmental
restoration and waste management activities pursuant to
section 3102, stipulated civil penalties in the amount of
$350,000 assessed under the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C.
9601 et seq.) against the Rocky Flats Site, Colorado.

SEC. 3135. FISSILE MATERIALS DISPOSITION.

(a) In General.--Of the funds authorized to be appropriated
to the Department of Energy for fiscal year 1996 pursuant to
section 3103, $70,000,000 shall be available only for
purposes of completing the evaluation of, and commencing
implementation of, the interim- and long-term storage and
disposition (including storage and disposition through the
use of advanced light water reactors and gas turbine gas-
cooled reactors) of fissile materials (including plutonium,
highly enriched uranium, and other fissile materials) that
are excess to the national security needs of the United
States.
(b) Availability of Funds for Multipurpose Reactors.--Of
funds made available pursuant to subsection (a), sufficient
funds shall be made available for the complete consideration
of multipurpose reactors for the disposition of fissile
materials in the programmatic environmental impact statement
of the Department.
(c) Limitation.--Of funds made available pursuant to
subsection (a), $10,000,000 shall be available only for a
plutonium resource assessment.

SEC. 3136. TRITIUM RECYCLING.

(a) In General.--Except as provided in subsection (b), the
following activities shall be carried out at the Savannah
River Site, South Carolina:
(1) All tritium recycling for weapons, including tritium
refitting.
(2) All activities regarding tritium formerly carried out
at the Mound Plant, Ohio.

[[Page H478]]

(b) Exception.--The following activities may be carried out
at the Los Alamos National Laboratory, New Mexico:
(1) Research on tritium.
(2) Work on tritium in support of the defense inertial
confinement fusion program.
(3) Provision of technical assistance to the Savannah River
Site regarding the weapons surveillance program.

SEC. 3137. MANUFACTURING INFRASTRUCTURE FOR REFABRICATION AND
CERTIFICATION OF NUCLEAR WEAPONS STOCKPILE.

(a) Manufacturing Program.--The Secretary of Energy shall
carry out a program for purposes of establishing within the
Government a manufacturing infrastructure that has the
capabilities of meeting the following objectives as specified
in the Nuclear Posture Review:
(1) To provide a stockpile surveillance engineering base.
(2) To refabricate and certify weapon components and types
in the enduring nuclear weapons stockpile, as necessary.
(3) To fabricate and certify new nuclear warheads, as
necessary.
(4) To support nuclear weapons.
(5) To supply sufficient tritium in support of nuclear
weapons to ensure an upload hedge in the event circumstances
require.
(b) Required Capabilities.--The manufacturing
infrastructure established under the program under subsection
(a) shall include the following capabilities (modernized to
attain the objectives referred to in that subsection):
(1) The weapons assembly capabilities of the Pantex Plant.
(2) The weapon secondary fabrication capabilities of the Y-
12 Plant, Oak Ridge, Tennessee.
(3) The tritium production, recycling, and other weapons-
related capabilities of the Savannah River Site.
(4) The non-nuclear component capabilities of the Kansas
City Plant.
(c) Nuclear Posture Review.--For purposes of subsection
(a), the term ``Nuclear Posture Review'' means the Department
of Defense Nuclear Posture Review as contained in the Report
of the Secretary of Defense to the President and the Congress
dated February 19, 1995, or subsequent such reports.
(d) Funding.--Of the funds authorized to be appropriated
under section 3101(b), $143,000,000 shall be available for
carrying out the program required under this section, of
which--
(1) $35,000,000 shall be available for activities at the
Pantex Plant;
(2) $30,000,000 shall be available for activities at the Y-
12 Plant, Oak Ridge, Tennessee;
(3) $35,000,000 shall be available for activities at the
Savannah River Site; and
(4) $43,000,000 shall be available for activities at the
Kansas City Plant.
(e) Plan and Report.--The Secretary shall develop a plan
for the implementation of this section. Not later than March
1, 1996, the Secretary shall submit to Congress a report on
the obligations the Secretary has incurred, and plans to
incur, during fiscal year 1996 for the program referred to in
subsection (a).

SEC. 3138. HYDRONUCLEAR EXPERIMENTS.

Of the funds authorized to be appropriated to the
Department of Energy pursuant to section 3101, $30,000,000
shall be available to prepare for the commencement of a
program of hydronuclear experiments at the nuclear weapons
design laboratories at the Nevada Test Site, Nevada. The
purpose of the program shall be to maintain confidence in the
reliability and safety of the nuclear weapons stockpile.

SEC. 3139. LIMITATION ON AUTHORITY TO CONDUCT HYDRONUCLEAR
TESTS.

Nothing in this Act may be construed to authorize the
conduct of hydronuclear tests or to amend or repeal the
requirements of section 507 of the Energy and Water
Development Appropriations Act, 1993 (Public Law 102-377; 106
Stat. 1343; 42 U.S.C. 2121 note).

SEC. 3140. FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS
CRITICAL TO THE DEPARTMENT OF ENERGY NUCLEAR
WEAPONS COMPLEX.

(a) In General.--The Secretary of Energy shall conduct a
fellowship program for the development of skills critical to
the ongoing mission of the Department of Energy nuclear
weapons complex. Under the fellowship program, the Secretary
shall--
(1) provide educational assistance and research assistance
to eligible individuals to facilitate the development by such
individuals of skills critical to maintaining the ongoing
mission of the Department of Energy nuclear weapons complex;
(2) employ eligible individuals at the facilities described
in subsection (c) in order to facilitate the development of
such skills by these individuals; or
(3) provide eligible individuals with the assistance and
the employment.
(b) Eligible Individuals.--Individuals eligible for
participation in the fellowship program are the following:
(1) Students pursuing graduate degrees in fields of science
or engineering that are related to nuclear weapons
engineering or to the science and technology base of the
Department of Energy.
(2) Individuals engaged in postdoctoral studies in such
fields.
(c) Covered Facilities.--The Secretary shall carry out the
fellowship program at or in connection with the following
facilities:
(1) The Kansas City Plant, Kansas City, Missouri.
(2) The Pantex Plant, Amarillo, Texas.
(3) The Y-12 Plant, Oak Ridge, Tennessee.
(4) The Savannah River Site, Aiken, South Carolina.
(d) Administration.--The Secretary shall carry out the
fellowship program at a facility referred to in subsection
(c) through the stockpile manager of the facility.
(e) Allocation of Funds.--The Secretary shall, in
consultation with the Assistant Secretary of Energy for
Defense Programs, allocate funds available for the fellowship
program under subsection (f) among the facilities referred to
in subsection (c). The Secretary shall make the allocation
after evaluating an assessment by the weapons program
director of each such facility of the personnel and critical
skills necessary at the facility for carrying out the ongoing
mission of the facility.
(f) Funding.--Of the funds authorized to be appropriated to
the Department of Energy for fiscal year 1996 under section
3101(b), $10,000,000 may be used for the purpose of carrying
out the fellowship program under this section.

SEC. 3141. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH
AND DEVELOPMENT PURPOSES.

Funds appropriated or otherwise made available to the
Department of Energy for fiscal year 1996 under section 3101
may be obligated and expended for activities under the
Department of Energy Laboratory Directed Research and
Development Program or under Department of Energy technology
transfer programs only if such activities support the
national security mission of the Department.

SEC. 3142. PROCESSING AND TREATMENT OF HIGH-LEVEL NUCLEAR
WASTE AND SPENT NUCLEAR FUEL RODS.

(a) Processing of Spent Nuclear Fuel Rods.--Of the amounts
appropriated pursuant to section 3102, there shall be
available to the Secretary of Energy to respond effectively
to new requirements for managing spent nuclear fuel--
(1) not more than $30,000,000, for the Savannah River Site
for the development and implementation of a program for the
processing, reprocessing, separation, reduction, isolation,
and interim storage of high-level nuclear waste associated
with aluminum clad spent fuel rods and foreign spent fuel
rods; and
(2) not more than $15,000,000, for the Idaho National
Engineering Laboratory for the development and implementation
of a program for the treatment, preparation, and conditioning
of high-level nuclear waste and spent nuclear fuel (including
naval spent nuclear fuel), nonaluminum clad fuel rods, and
foreign fuel rods for interim storage and final disposition.
(b) Implementation Plan.--Not later than April 30, 1996,
the Secretary shall submit to Congress a five-year plan for
the implementation of the programs referred to in subsection
(a). The plan shall include--
(1) an assessment of the facilities required to be
constructed or upgraded to carry out the processing,
separation, reduction, isolation and interim storage of high-
level nuclear waste;
(2) a description of the technologies, including
stabilization technologies, that are required to be developed
for the efficient conduct of the programs;
(3) a projection of the dates upon which activities under
the programs are sufficiently completed to provide for the
transfers of such waste to permanent repositories; and
(4) a projection of the total cost to complete the
programs.
(c) Electrometallurgical Waste Treatment Technologies.--Of
the amount appropriated pursuant to section 3102(c), not more
than $25,000,000 shall be available for development of
electrometallurgical waste treatment technologies at the
Argonne National Laboratory.
(d) Use of Funds for Settlement Agreement.--Funds made
available pursuant to subsection (a)(2) for the Idaho
National Engineering Laboratory shall be considered to be
funds made available in partial fulfillment of the terms and
obligations set forth in the settlement agreement entered
into by the United States with the State of Idaho in the
actions captioned Public Service Co. of Colorado v. Batt,
Civil No. 91-0035-S-EJL, and United States v. Batt, Civil No.
91-0054-S-EJL, in the United States District Court for the
District of Idaho and the consent order of the United States
District Court for the District of Idaho, dated October 17,
1995, that effectuates the settlement agreement.

SEC. 3143. PROTECTION OF WORKERS AT NUCLEAR WEAPONS
FACILITIES.

Of the funds authorized to be appropriated to the
Department of Energy under section 3102, $10,000,000 shall be
available to carry out activities authorized under section
3131 of the National Defense Authorization Act for Fiscal
Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1571; 42
U.S.C. 7274d), relating to worker protection at nuclear
weapons facilities.

SEC. 3144. DEPARTMENT OF ENERGY DECLASSIFICATION PRODUC-
TIVITY INITIATIVE.

Of the funds authorized to be appropriated to the
Department of Energy under section 3103, $3,000,000 shall be
available for the Declassification Productivity Initiative of
the Department of Energy.
Subtitle D--Other Matters

SEC. 3151. REPORT ON FOREIGN TRITIUM PURCHASES.

(a) Report.--Not later than May 1, 1996, the President
shall submit to the congressional defense committees a report
on the

[[Page H479]]
feasibility of, the cost of, and the policy, legal, and other issues
associated with purchasing tritium from various foreign
suppliers in order to ensure an adequate supply of tritium in
the United States for nuclear weapons.
(b) Form of Report.--The report shall be submitted in
unclassified form, but may contain a classified appendix.

SEC. 3152. STUDY ON NUCLEAR TEST READINESS POSTURES.

Not later than February 15, 1996, the Secretary of Energy
shall submit to Congress a report on the costs, programmatic
issues, and other issues associated with sustaining the
capability of the Department of Energy--
(1) to conduct an underground nuclear test 6 months after
the date on which the President determines that such a test
is necessary to ensure the national security of the United
States;
(2) to conduct such a test 18 months after such date; and
(3) to conduct such a test 36 months after such date.

SEC. 3153. MASTER PLAN FOR THE CERTIFICATION, STEWARDSHIP,
AND MANAGEMENT OF WARHEADS IN THE NUCLEAR
WEAPONS STOCKPILE.

(a) Master Plan Requirement.--Not later than March 15,
1996, the President shall submit to Congress a master plan
for maintaining the nuclear weapons stockpile. The President
shall submit to Congress an update of the master plan not
later than March 15 of each year thereafter.
(b) Plan Elements.--The master plan and each update of the
master plan shall set forth the following:
(1) The numbers of weapons (including active and inactive
weapons) for each type of weapon in the nuclear weapons
stockpile.
(2) The expected design lifetime of each weapon type, the
current age of each weapon type, and any plans (including the
analytical basis for such plans) for lifetime extensions of a
weapon type.
(3) An estimate of the lifetime of the nuclear and
nonnuclear components of the weapons (including active
weapons and inactive weapons) in the nuclear weapons
stockpile, and any plans (including the analytical basis for
such plans) for lifetime extensions of such components.
(4) A schedule of the modifications, if any, required for
each weapon type (including active and inactive weapons) in
the nuclear weapons stockpile and the cost of such
modifications.
(5) The process to be used in recertifying the safety,
reliability, and performance of each weapon type (including
active weapons and inactive weapons) in the nuclear weapons
stockpile.
(6) The manufacturing infrastructure required to maintain
the nuclear weapons stockpile stewardship and management
programs, including a detailed project plan that demonstrates
the manner by which the Government will develop by 2002 the
capability to refabricate and certify warheads in the nuclear
weapons stockpile and to design, fabricate, and certify new
warheads.
(c) Form of Plan.--The master plan and each update of the
master plan shall be submitted in unclassified form, but may
contain a classified appendix.

SEC. 3154. PROHIBITION ON INTERNATIONAL INSPECTIONS OF
DEPARTMENT OF ENERGY FACILITIES UNLESS
PROTECTION OF RESTRICTED DATA IS CERTIFIED.

(a) Prohibition on Inspections.--(1) The Secretary of
Energy may not allow an inspection of a nuclear weapons
facility by the International Atomic Energy Agency until the
Secretary certifies to Congress that no restricted data will
be revealed during such inspection.
(2) For purposes of paragraph (1), the term ``restricted
data'' has the meaning provided by section 11 y. of the
Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).
(b) Extension of Notice-and-Wait Requirement Regarding
Proposed Cooperation Agreements.--Section 3155(b) of the
National Defense Authorization Act for Fiscal Year 1995
(Public Law 103-337; 108 Stat. 3092) is amended by striking
out ``December 31, 1995'' and inserting in lieu thereof
``October 1, 1996''.

SEC. 3155. REVIEW OF CERTAIN DOCUMENTS BEFORE
DECLASSIFICATION AND RELEASE.

(a) In General.--The Secretary of Energy shall ensure that,
before a document of the Department of Energy that contains
national security information is released or declassified,
such document is reviewed to determine whether it contains
restricted data.
(b) Limitation on Declassification.--The Secretary may not
implement the automatic declassification provisions of
Executive Order 12958 if the Secretary determines that such
implementation could result in the automatic declassification
and release of documents containing restricted data.
(c) Restricted Data Defined.--In this section, the term
``restricted data'' has the meaning provided by section 11 y.
of the Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).

SEC. 3156. ACCELERATED SCHEDULE FOR ENVIRONMENTAL RESTORATION
AND WASTE MANAGEMENT ACTIVITIES.

(a) Accelerated Cleanup.--The Secretary of Energy shall
accelerate the schedule for environmental restoration and
waste management activities and projects for a site at a
Department of Energy defense nuclear facility if the
Secretary determines that such an accelerated schedule will
achieve meaningful, long-term cost savings to the Federal
Government and could substantially accelerate the release of
land for local reuse.
(b) Consideration of Factors.--In making a determination
under subsection (a), the Secretary shall consider the
following:
(1) The cost savings achievable by the Federal Government.
(2) The amount of time for completion of environmental
restoration and waste management activities and projects at
the site that can be reduced from the time specified for
completion of such activities and projects in the baseline
environmental management report required to be submitted for
1995 under section 3153 of the National Defense Authorization
Act for Fiscal Year 1994 (42 U.S.C. 7274k).
(3) The potential for reuse of the site.
(4) The risks that the site poses to local health and
safety.
(5) The proximity of the site to populated areas.
(c) Report.--Not later than May 1, 1996, the Secretary
shall submit to Congress a report on each site for which the
Secretary has accelerated the schedule for environmental
restoration and waste management activities and projects
under subsection (a). The report shall include an explanation
of the basis for the determination for that site required by
such subsection, including an explanation of the
consideration of the factors described in subsection (b).
(d) Savings Provision.--Nothing in this section may be
construed to affect a specific statutory requirement for a
specific environmental restoration or waste management
activity or project or to modify or otherwise affect
applicable statutory or regulatory environmental restoration
and waste management requirements, including substantive
standards intended to protect public health and the
environment.

SEC. 3157. SENSE OF CONGRESS REGARDING CERTAIN ENVIRONMENTAL
RESTORATION REQUIREMENTS.

It is the sense of Congress that--
(1) an individual acting within the scope of that
individual's employment with a Federal agency should not be
personally subject to civil or criminal sanctions (to the
extent such sanctions are provided for by law) as a result of
the failure to comply with an environmental cleanup
requirement under the Solid Waste Disposal Act or the
Comprehensive Environmental Response, Compensation, and
Liability Act or an analogous requirement under a comparable
Federal, State, or local law, in any circumstance under which
such failure to comply is due to an insufficiency of funds
appropriated to carry out such requirement;
(2) Federal and State enforcement authorities should
refrain from an enforcement action in a circumstance
described in paragraph (1); and
(3) if funds appropriated for a fiscal year after fiscal
year 1995 are insufficient to carry out any such
environmental cleanup requirement, Congress should elicit the
views of Federal agencies, affected States, and the public,
and consider appropriate legislative action to address
personal criminal liability in a circumstance described in
paragraph (1) and any related issues pertaining to potential
liability of a Federal agency.

SEC. 3158. RESPONSIBILITY FOR DEFENSE PROGRAMS EMERGENCY
RESPONSE PROGRAM.

The Office of Military Applications under the Assistant
Secretary of Energy for Defense Programs shall retain
responsibility for the Defense Programs Emergency Response
Program within the Department of Energy.

SEC. 3159. REQUIREMENTS FOR DEPARTMENT OF ENERGY WEAPONS
ACTIVITIES BUDGETS FOR FISCAL YEARS AFTER
FISCAL YEAR 1996.

(a) In General.--The weapons activities budget of the
Department of Energy shall be developed in accordance with
the Nuclear Posture Review, the Post Nuclear Posture Review
Stockpile Memorandum currently under development, 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 a fiscal year submitted by the
President pursuant to section 1105 of title 31, United States
Code, a long-term program plan, and a near-term program plan,
for the certification and stewardship of the nuclear weapons
stockpile.
(c) Definition.--In this section, the term ``Nuclear
Posture Review'' means the Department of Defense Nuclear
Posture Review as contained in the report of the Secretary of
Defense to the President and the Congress dated February 19,
1995, or in subsequent such reports.

SEC. 3160. REPORT ON HYDRONUCLEAR TESTING.

(a) Report.--The Secretary of Energy shall direct the joint
preparation by the Directors of the Lawrence Livermore
National Laboratory and the Los Alamos National Laboratory of
a report on the advantages and disadvantages with respect to
the safety and reliability of the nuclear weapons stockpile
of permitting alternative limits to the current limit on the
explosive yield of hydronuclear and other explosive tests.
The report shall address the following explosive yield
limits:
(1) 4 pounds (TNT equivalent).
(2) 400 pounds (TNT equivalent).
(3) 4,000 pounds (TNT equivalent).
(4) 40,000 pounds (TNT equivalent).
(5) 400 tons (TNT equivalent).
(b) Funding.--The Secretary shall make available funds
appropriated to the Department of Energy pursuant to section
3101 for preparation of the report required under subsection
(a).

[[Page H480]]

SEC. 3161. APPLICABILITY OF ATOMIC ENERGY COMMUNITY ACT OF
1955 TO LOS ALAMOS, NEW MEXICO.

(a) Date of Transfer of Utilities.--Section 72 of the
Atomic Energy Community Act of 1955 (42 U.S.C. 2372) is
amended by striking out ``not later than five years after the
date it is included within this Act'' and inserting in lieu
thereof ``not later than June 30, 1998''.
(b) Date of Transfer of Municipal Installations.--Section
83 of such Act (42 U.S.C. 2383) is amended by striking out
``not later than five years after the date it is included
within this Act'' and inserting in lieu thereof ``not later
than June 30, 1998''.
(c) Recommendation for Further Assistance Payments.--
Section 91d. of such Act (42 U.S.C. 2391) is amended--
(1) by striking out ``, and the Los Alamos School Board;''
and all that follows through ``county of Los Alamos, New
Mexico'' and inserting in lieu thereof ``; or not later than
June 30, 1996, in the case of the Los Alamos School Board and
the county of Los Alamos, New Mexico''; and
(2) by adding at the end the following new sentence: ``If
the recommendation under the preceding sentence regarding the
Los Alamos School Board or the county of Los Alamos, New
Mexico, indicates a need for further assistance for the
school board or the county, as the case may be, after June
30, 1997, the recommendation shall include a report and plan
describing the actions required to eliminate the need for
further assistance for the school board or the county,
including a proposal for legislative action to carry out the
plan.''.
(d) Contract To Make Payments.--Section 94 of such Act (42
U.S.C. 2394) is amended--
(1) by striking out ``June 30, 1996'' each place it appears
in the proviso in the first sentence and inserting in lieu
thereof ``June 30, 1997''; and
(2) by striking out ``July 1, 1996'' in the second sentence
and inserting in lieu thereof ``July 1, 1997''.

SEC. 3162. SENSE OF CONGRESS REGARDING SHIPMENTS OF SPENT
NUCLEAR FUEL.

(a) Findings.--Congress makes the following findings:
(1) The United States has entered into a settlement
agreement with the State of Idaho in the actions captioned
Public Service Co. of Colorado v. Batt, Civil No. 91-0035-S-
EJL, and United States v. Batt, Civil No. 91-0054-S-EJL, in
the United States District Court for the District of Idaho,
regarding shipment of naval spent nuclear fuel to Idaho,
examination and storage of such fuel in Idaho, and other
matters.
(2) Under this court enforceable agreement--
(A) the State of Idaho has agreed--
(i) to accept 575 shipments of naval spent nuclear fuel
from the Navy into Idaho between October 17, 1995 and 2035;
(ii) to accept certain shipments of spent nuclear fuel from
the Department of Energy into Idaho between October 17, 1995
and 2035; and
(iii) to allow the Navy and the Department of Energy, on an
interim basis, to store the spent nuclear fuel in Idaho over
the next 40 years; and
(B) the United States has made commitments--
(i) to remove all spent nuclear fuel (except certain
quantities for testing) from Idaho by 2035; and
(ii) to facilitate the cleanup and stabilization of
radioactive waste at the Idaho National Engineering
Laboratory.
(3) The settlement agreement allows the Department of
Energy and the Department of the Navy to meet
responsibilities that are important to the national security
interests of the United States.
(4) Authorizations and appropriations of funds will be
necessary in order to provide for fulfillment of the terms
and obligations set forth in the settlement agreement.
(b) Sense of Congress.--(1) Congress recognizes the need to
implement the terms, conditions, rights, and obligations
contained in the settlement agreement referred to in
subsection (a)(1) and the consent order of the United States
District Court for the District of Idaho, dated October 17,
1995, that effectuates the settlement agreement in accordance
with those terms, conditions, rights, and obligations.
(2) It is the sense of Congress that funds requested by the
President to carry out the settlement agreement and such
consent order should be appropriated for that purpose.
TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

SEC. 3201. AUTHORIZATION.

There are authorized to be appropriated for fiscal year
1996, $17,000,000 for the operation of the Defense Nuclear
Facilities Safety Board under chapter 21 of the Atomic Energy
Act of 1954 (42 U.S.C. 2286 et seq.).
TITLE XXXIII--NATIONAL DEFENSE STOCKPILE
Subtitle A--Authorization of Disposals and Use of Funds

SEC. 3301. DEFINITIONS.

For purposes of this subtitle:
(1) The term ``National Defense Stockpile'' means the
stockpile provided for in section 4 of the Strategic and
Critical Materials Stock Piling Act (50 U.S.C. 98c).
(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
1996, the National Defense Stockpile Manager may obligate up
to $77,100,000 of the funds in the National Defense Stockpile
Transaction Fund for the authorized uses of such funds under
section 9(b)(2) of the Strategic and Critical Materials Stock
Piling Act (50 U.S.C. 98h(b)(2)).
(b) Additional Obligations.--The National Defense Stockpile
Manager may obligate amounts in excess of the amount
specified in subsection (a) if the National Defense Stockpile
Manager notifies Congress that extraordinary or emergency
conditions necessitate the additional obligations. The
National Defense Stockpile Manager may make the additional
obligations described in the notification after the end of
the 45-day period beginning on the date Congress receives the
notification.
(c) Limitations.--The authorities provided by this section
shall be subject to such limitations as may be provided in
appropriations Acts.

SEC. 3303. DISPOSAL OF CHROMITE AND MANGANESE ORES AND
CHROMIUM FERRO AND MANGANESE METAL
ELECTROLYTIC.

(a) Domestic Upgrading.--In offering to enter into
agreements pursuant to any provision of law for the disposal
from the National Defense Stockpile of chromite and manganese
ores or chromium ferro and manganese metal electrolytic, the
President shall give a right of first refusal on all such
offers to domestic ferroalloy upgraders.
(b) Domestic Ferroalloy Upgrader Defined.--For purposes of
this section, the term ``domestic ferroalloy upgrader'' means
a company or other business entity that, as determined by the
President--
(1) is engaged in operations to upgrade chromite or
manganese ores of metallurgical grade or chromium ferro and
manganese metal electrolytic; and
(2) conducts a significant level of its research,
development, engineering, and upgrading operations in the
United States.

SEC. 3304. RESTRICTIONS ON DISPOSAL OF MANGANESE FERRO.

(a) Disposal of Lower Grade Material First.--The President
may not dispose of high carbon manganese ferro in the
National Defense Stockpile that meets the National Defense
Stockpile classification of Grade One, Specification 30(a),
as revised on May 22, 1992, until completing the disposal of
all manganese ferro in the National Defense Stockpile that
does not meet such classification. The President may not
reclassify manganese ferro in the National Defense Stockpile
after the date of the enactment of this Act.
(b) Requirement for Remelting by Domestic Ferroalloy
Producers.--Manganese ferro in the National Defense Stockpile
that does not meet the classification specified in subsection
(a) may be sold only for remelting by a domestic ferroalloy
producer unless the President determines that a domestic
ferroalloy producer is not available to acquire the material.
(c) Domestic Ferroalloy Producer Defined.--For purposes of
this section, the term ``domestic ferroalloy producer'' means
a company or other business entity that, as determined by the
President--
(1) is engaged in operations to upgrade manganese ores of
metallurgical grade or manganese ferro; and
(2) conducts a significant level of its research,
development, engineering, and upgrading operations in the
United States.

SEC. 3305. TITANIUM INITIATIVE TO SUPPORT BATTLE TANK UPGRADE
PROGRAM.

During each of the fiscal years 1996 through 2003, the
Secretary of Defense shall transfer from stocks of the
National Defense Stockpile up to 250 short tons of titanium
sponge to the Secretary of the Army for use in the weight
reduction portion of the main battle tank upgrade program.
Transfers under this section shall be without charge to the
Army, except that the Secretary of the Army shall pay all
transportation and related costs incurred in connection with
the transfer.
Subtitle B--Programmatic Change

SEC. 3311. TRANSFER OF EXCESS DEFENSE-RELATED MATERIALS TO
STOCKPILE FOR DISPOSAL.

(a) Transfer and Disposal.--Section 4 of the Strategic and
Critical Materials Stock Piling Act (50 U.S.C. 98c) is
amended by adding at the end the following new subsection:
``(c)(1) The Secretary of Energy, in consultation with the
Secretary of Defense, shall transfer to the stockpile for
disposal in accordance with this Act uncontaminated materials
that are in the Department of Energy inventory of materials
for the production of defense-related items, are excess to
the requirements of the Department for that purpose, and are
suitable for transfer to the stockpile and disposal through
the stockpile.
``(2) The Secretary of Defense shall determine whether
materials are suitable for transfer to the stockpile under
this subsection, are suitable for disposal through the
stockpile, and are uncontaminated.''.
(b) Conforming Amendment.--Subsection (a) of such section
is amended by adding at the end the following:
``(10) Materials transferred to the stockpile under
subsection (c).''.

[[Page H481]]

TITLE XXXIV--NAVAL PETROLEUM RESERVES
Subtitle A--Administration of Naval Petroleum Reserves

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

There is hereby authorized to be appropriated to the
Secretary of Energy $148,786,000 for fiscal year 1996 for the
purpose of carrying out activities under chapter 641 of title
10, United States Code, relating to the naval petroleum
reserves (as defined in section 7420(2) of such title). Funds
appropriated pursuant to such authorization shall remain
available until expended. Of the amount appropriated pursuant
to the authorization of appropriations in the preceding
sentence, the Secretary may use not more than $7,000,000 for
carrying out activities related to the sale of Naval
Petroleum Reserve Numbered 1 under section 3412.

SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM
DURING FISCAL YEAR 1996.

Notwithstanding section 7430(b)(2) of title 10, United
States Code, during fiscal year 1996, any sale of any part of
the United States share of petroleum produced from Naval
Petroleum Reserves Numbered 1, 2, and 3 shall be made at a
price not less than 90 percent of the current sales price, as
estimated by the Secretary of Energy, of comparable petroleum
in the same area.

SEC. 3403. EXTENSION OF OPERATING CONTRACT FOR NAVAL
PETROLEUM RESERVE NUMBERED 1.

Section 3503 of the National Defense Authorization Act of
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3111) is
amended by striking out ``two years'' in the first sentence
and inserting in lieu thereof ``three years''.
Subtitle B--Sale of Naval Petroleum Reserve

SEC. 3411. DEFINITIONS.

For purposes of this subtitle:
(1) The terms ``Naval Petroleum Reserve Numbered 1'' and
``reserve'' mean Naval Petroleum Reserve Numbered 1, commonly
referred to as the Elk Hills Unit, located in Kern County,
California, and established by Executive order of the
President, dated September 2, 1912.
(2) The term ``naval petroleum reserves'' has the meaning
given that term in section 7420(2) of title 10, United States
Code, except that the term does not include Naval Petroleum
Reserve Numbered 1.
(3) The term ``unit plan contract'' means the unit plan
contract between equity owners of the lands within the
boundaries of Naval Petroleum Reserve Numbered 1 entered into
on June 19, 1944.
(4) The term ``effective date'' means the date of the
enactment of this Act.
(5) The term ``Secretary'' means the Secretary of Energy.
(6) The term ``appropriate congressional committees means
the Committee on Armed Services of the Senate and the
Committee on National Security and the Committee on Commerce
of the House of Representatives.

SEC. 3412. SALE OF NAVAL PETROLEUM RESERVE NUMBERED 1.

(a) Sale of Reserve Required.--Subject to section 3414, not
later than two years after the effective date, the Secretary
of Energy shall enter into one or more contracts for the sale
of all right, title, and interest of the United States in and
to all lands owned or controlled by the United States inside
Naval Petroleum Reserve Numbered 1. Chapter 641 of title 10,
United States Code, shall not apply to the sale of the
reserve.
(b) Equity Finalization.--(1) Not later than eight months
after the effective date, the Secretary shall finalize equity
interests of the known oil and gas zones in Naval Petroleum
Reserve Numbered 1 in the manner provided by this subsection.
(2) The Secretary shall retain the services of an
independent petroleum engineer, mutually acceptable to the
equity owners, who shall prepare a recommendation on final
equity figures. The Secretary may accept the recommendation
of the independent petroleum engineer for final equity in
each known oil and gas zone and establish final equity
interest in Naval Petroleum Reserve Numbered 1 in accordance
with the recommendation, or the Secretary may use such other
method to establish final equity interest in the reserve as
the Secretary considers appropriate.
(3) If, on the effective date, there is an ongoing equity
redetermination dispute between the equity owners under
section 9(b) of the unit plan contract, the dispute shall be
resolved in the manner provided in the unit plan contract
within eight months after the effective date. The resolution
shall be considered final for all purposes under this
section.
(c) Notice of Sale.--Not later than two months after the
effective date, the Secretary shall publish a notice of
intent to sell Naval Petroleum Reserve Numbered 1. The
Secretary shall make all technical, geological, and financial
information relevant to the sale of the reserve available to
all interested and qualified buyers upon request. The
Secretary, in consultation with the Administrator of General
Services, shall ensure that the sale process is fair and open
to all interested and qualified parties.
(d) Establishment of Minimum Sale Price.--(1) Not later
than seven months after the effective date, the Secretary
shall retain the services of five independent experts in the
valuation of oil and gas fields to conduct separate
assessments, in a manner consistent with commercial
practices, of the value of the interest of the United States
in Naval Petroleum Reserve Numbered 1. The independent
experts shall complete their assessments within 11 months
after the effective date. In making their assessments, the
independent experts shall consider (among other factors)--
(A) all equipment and facilities to be included in the
sale;
(B) the estimated quantity of petroleum and natural gas in
the reserve; and
(C) the net present value of the anticipated revenue stream
that the Secretary and the Director of the Office of
Management and Budget jointly determine the Treasury would
receive from the reserve if the reserve were not sold,
adjusted for any anticipated increases in tax revenues that
would result if the reserve were sold.
(2) The independent experts retained under paragraph (1)
shall also determine and submit to the Secretary the
estimated total amount of the cost of any environmental
restoration and remediation necessary at the reserve. The
Secretary shall report the estimate to the Director of the
Office of Management and Budget, the Secretary of the
Treasury, and Congress.
(3) The Secretary, in consultation with the Director of the
Office of Management and Budget, shall set the minimum
acceptable price for the reserve. The Secretary may not set
the minimum acceptable price below the higher of--
(A) the average of the five assessments prepared under
paragraph (1); and
(B) the average of three assessments after excluding the
high and low assessments.
(e) Administration of Sale; Draft Contract.--(1) Not later
than two months after the effective date, the Secretary shall
retain the services of an investment banker or an appropriate
equivalent financial adviser to independently administer, in
a manner consistent with commercial practices and in a manner
that maximizes sale proceeds to the Government, the sale of
Naval Petroleum Reserve Numbered 1 under this section. Costs
and fees of retaining the investment banker or financial
adviser may be paid out of the proceeds of the sale of the
reserve.
(2) Not later than 11 months after the effective date, the
investment banker or financial adviser retained under
paragraph (1) shall complete a draft contract or contracts
for the sale of Naval Petroleum Reserve Numbered 1, which
shall accompany the solicitation of offers and describe the
terms and provisions of the sale of the interest of the
United States in the reserve.
(3) The draft contract or contracts shall identify--
(A) all equipment and facilities to be included in the
sale; and
(B) any potential claim or liability (including liability
for environmental restoration and remediation), and the
extent of any such claim or liability, for which the United
States is responsible under subsection (g).
(4) The draft contract or contracts, including the terms
and provisions of the sale of the interest of the United
States in the reserve, shall be subject to review and
approval by the Secretary, the Secretary of the Treasury, and
the Director of the Office of Management and Budget. Each of
those officials shall complete the review of, and approve or
disapprove, the draft contract or contracts not later than 12
months after the effective date.
(f) Solicitation of Offers.--(1) Not later than 13 months
after the effective date, the Secretary shall publish the
solicitation of offers for Naval Petroleum Reserve Numbered
1.
(2) Not later than 18 months after the effective date, the
Secretary shall identify the highest responsible offer or
offers for purchase of the interest of the United States in
Naval Petroleum Reserve Numbered 1 that, in total, meet or
exceed the minimum acceptable price determined under
subsection (d)(3).
(3) The Secretary shall take such action immediately after
the effective date as is necessary to obtain from an
independent petroleum engineer within 10 months after that
date a reserve report prepared in a manner consistent with
commercial practices. The Secretary shall use the reserve
report in support of the preparation of the solicitation of
offers for the reserve.
(g) Future Liabilities.--To effectuate the sale of the
interest of the United States in Naval Petroleum Reserve
Numbered 1, the Secretary may extend such indemnities and
warranties as the Secretary considers reasonable and
necessary to protect the purchaser from claims arising from
the ownership in the reserve by the United States.
(h) Maintaining Production.--Until the sale of Naval
Petroleum Reserve Numbered 1 is completed under this section,
the Secretary shall continue to produce the reserve at the
maximum daily oil or gas rate from a reservoir, which will
permit maximum economic development of the reservoir
consistent with sound oil field engineering practices in
accordance with section 3 of the unit plan contract.
(i) Noncompliance With Deadlines.--At any time during the
two-year period beginning on the effective date, if the
Secretary determines that the actions necessary to complete
the sale of the reserve within that period are not being
taken or timely completed, the Secretary shall transmit to
the appropriate congressional committees a written
notification of that determination together with a plan
setting forth the actions that will be taken to ensure that
the sale of the reserve will be completed within

[[Page H482]]
that period. The Secretary shall consult with the Director of the
Office of Management and Budget in preparing the plan for
submission to the committees.
(j) Oversight.--The Comptroller General shall monitor the
actions of the Secretary relating to the sale of the reserve
and report to the appropriate congressional committees any
findings on such actions that the Comptroller General
considers appropriate to report to the committees.
(k) Acquisition of Services.--The Secretary may enter into
contracts for the acquisition of services required under this
section under the authority of paragraph (7) of section
303(c) of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253(c)), except that the notification
required under subparagraph (B) of such paragraph for each
contract shall be submitted to Congress not less than 7 days
before the award of the contract.

SEC. 3413. EFFECT OF SALE OF RESERVE.

(a) Effect on Existing Contracts.--(1) In the case of any
contract, in effect on the effective date, for the purchase
of production from any part of the United States' share of
Naval Petroleum Reserve Numbered 1, the sale of the interest
of the United States in the reserve shall be subject to the
contract for a period of three months after the closing date
of the sale or until termination of the contract, whichever
occurs first. The term of any contract entered into after the
effective date for the purchase of the production shall not
exceed the anticipated closing date for the sale of the
reserve.
(2) The Secretary shall exercise the termination procedures
provided in the contract between the United States and
Bechtel Petroleum Operation, Inc., Contract Number DE-ACO1-
85FE60520 so that the contract terminates not later than the
date of closing of the sale of Naval Petroleum Reserve
Numbered 1 under section 3412.
(3) The Secretary shall exercise the termination procedures
provided in the unit plan contract so that the unit
plan contract terminates not later than the date of
closing of the sale of reserve.
(b) Effect on Antitrust Laws.--Nothing in this subtitle
shall be construed to alter the application of the antitrust
laws of the United States to the purchaser or purchasers (as
the case may be) of Naval Petroleum Reserve Numbered 1 or to
the lands in the reserve subject to sale under section 3412
upon the completion of the sale.
(c) Preservation of Private Right, Title, and Interest.--
Nothing in this subtitle shall be construed to adversely
affect the ownership interest of any other entity having any
right, title, and interest in and to lands within the
boundaries of Naval Petroleum Reserve Numbered 1 and which
are subject to the unit plan contract.
(d) Transfer of Otherwise Nontransferable Permit.--The
Secretary may transfer to the purchaser or purchasers (as the
case may be) of Naval Petroleum Reserve Numbered 1 the
incidental take permit regarding the reserve issued to the
Secretary by the United States Fish and Wildlife Service and
in effect on the effective date if the Secretary determines
that transfer of the permit is necessary to expedite the sale
of the reserve in a manner that maximizes the value of the
sale to the United States. The transferred permit shall cover
the identical activities, and shall be subject to the same
terms and conditions, as apply to the permit at the time of
the transfer.

SEC. 3414. CONDITIONS ON SALE PROCESS.

(a) Notice Regarding Sale Conditions.--The Secretary may
not enter into any contract for the sale of Naval Petroleum
Reserve Numbered 1 under section 3412 until the end of the
31-day period beginning on the date on which the Secretary
submits to the appropriate congressional committees a written
notification--
(1) describing the conditions of the proposed sale; and
(2) containing an assessment by the Secretary of whether it
is in the best interests of the United States to sell the
reserve under such conditions.
(b) Authority to Suspend Sale.--(1) The Secretary may
suspend the sale of Naval Petroleum Reserve Numbered 1 under
section 3412 if the Secretary and the Director of the Office
of Management and Budget jointly determine that--
(A) the sale is proceeding in a manner inconsistent with
achievement of a sale price that reflects the full value of
the reserve; or
(B) a course of action other than the immediate sale of the
reserve is in the best interests of the United States.
(2) Immediately after making a determination under
paragraph (1) to suspend the sale of Naval Petroleum Reserve
Numbered 1, the Secretary shall submit to the appropriate
congressional committees a written notification describing
the basis for the determination and requesting a
reconsideration of the merits of the sale of the reserve.
(c) Effect of Reconsideration Notice.--After the Secretary
submits a notification under subsection (b), the Secretary
may not complete the sale of Naval Petroleum Reserve Numbered
1 under section 3412 or any other provision of law unless the
sale of the reserve is authorized in an Act of Congress
enacted after the date of the submission of the notification.

SEC. 3415. TREATMENT OF STATE OF CALIFORNIA CLAIM REGARDING
RESERVE.

(a) Reservation of Funds.--After the costs incurred in the
conduct of the sale of Naval Petroleum Reserve Numbered 1
under section 3412 are deducted, nine percent of the
remaining proceeds from the sale of the reserve shall be
reserved in a contingent fund in the Treasury for payment to
the State of California for the Teachers' Retirement Fund of
the State in the event that, and to the extent that, the
claims of the State against the United States regarding
production and proceeds of sale from Naval Petroleum Reserve
Numbered 1 are--
(1) settled by agreement with the United States under
subsection (c); or
(2) finally resolved in favor of the State by a court of
competent jurisdiction, if a settlement agreement is not
reached.
(b) Disposition of Funds.--In such amounts as may be
provided in appropriation Acts, amounts in the contingent
fund shall be available for paying a claim described in
subsection (a). After final disposition of the claims, any
unobligated balance in the contingent fund shall be credited
to the general fund of the Treasury. If no payment is made
from the contingent fund within 10 years after the effective
date, amounts in the contingent fund shall be credited to the
general fund of the Treasury.
(c) Settlement Offer.--Not later than 30 days after the
date of the sale of Naval Petroleum Reserve Numbered 1 under
section 3412, the Secretary shall offer to settle all claims
of the State of California against the United States with
respect to lands in the reserve located in sections 16 and 36
of township 30 south, range 23 east, Mount Diablo Principal
Meridian, California, and production or proceeds of sale from
the reserve, in order to provide proper compensation for the
State's claims. The Secretary shall base the amount of the
offered settlement payment from the contingent fund on the
fair value for the State's claims, including the mineral
estate, not to exceed the amount reserved in the contingent
fund.
(d) Release of Claims.--Acceptance of the settlement offer
made under subsection (c) shall be subject to the condition
that all claims against the United States by the State of
California for the Teachers' Retirement Fund of the State be
released with respect to lands in Naval Petroleum Reserve
Numbered 1, including sections 16 and 36 of township 30
south, range 23 east, Mount Diablo Principal Meridian,
California, or production or proceeds of sale from the
reserve.

SEC. 3416. STUDY OF FUTURE OF OTHER NAVAL PETROLEUM RESERVES.

(a) Study Required.--The Secretary of Energy shall conduct
a study to determine which of the following options, or
combinations of options, regarding the naval petroleum
reserves (other than Naval Petroleum Reserve Numbered 1)
would maximize the value of the reserves to the United
States:
(1) Retention and operation of the naval petroleum reserves
by the Secretary under chapter 641 of title 10, United States
Code.
(2) Transfer of all or a part of the naval petroleum
reserves to the jurisdiction of another Federal agency for
administration under chapter 641 of title 10, United States
Code.
(3) Transfer of all or a part of the naval petroleum
reserves to the Department of the Interior for leasing in
accordance with the Mineral Leasing Act (30 U.S.C. 181 et
seq.) and surface management in accordance with the Federal
Land Policy and Management Act (43 U.S.C. 1701 et seq.).
(4) Sale of the interest of the United States in the naval
petroleum reserves.
(b) Conduct of Study.--The Secretary shall retain an
independent petroleum consultant to conduct the study.
(c) Considerations Under Study.--An examination of the
value to be derived by the United States from the transfer or
sale of the naval petroleum reserves shall include an
assessment and estimate of the fair market value of the
interest of the United States in the naval petroleum
reserves. The assessment and estimate shall be made in a
manner consistent with customary property valuation practices
in the oil and gas industry.
(d) Report and Recommendations Regarding Study.--Not later
than June 1, 1996, the Secretary shall submit to Congress a
report describing the results of the study and containing
such recommendations (including proposed legislation) as the
Secretary considers necessary to implement the option, or
combination of options, identified in the study that would
maximize the value of the naval petroleum reserves to the
United States.
TITLE XXXV--PANAMA CANAL COMMISSION
Subtitle A--Authorization of Appropriations

SEC. 3501. SHORT TITLE.

This subtitle may be cited as the ``Panama Canal Commission
Authorization Act for Fiscal Year 1996''.

SEC. 3502. AUTHORIZATION OF EXPENDITURES.

(a) In General.--Subject to subsection (b), the Panama
Canal Commission is authorized to 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 without regard to fiscal year limitations, as may
be necessary under the Panama Canal Act of 1979 (22 U.S.C.
3601 et seq.) for the operation, maintenance, and improvement
of the Panama Canal for fiscal year 1996.
(b) Limitations.--For fiscal year 1996, the Panama Canal
Commission may expend from funds in the Panama Canal
Revolving Fund not more than $50,741,000 for administrative
expenses, of which--

[[Page H483]]

(1) not more than $15,000 may be used for official
reception and representation expenses of the Supervisory
Board of the Commission;
(2) not more than $10,000 may be used for official
reception and representation expenses of the Secretary of the
Commission; and
(3) not more than $45,000 may be used for official
reception and representation expenses of the Administrator of
the Commission.
(c) Replacement Vehicles.--Funds available to the Panama
Canal Commission shall be available for the purchase of not
to exceed 38 passenger motor vehicles (including large heavy-
duty vehicles to be used to transport Commission personnel
across the isthmus of Panama) at a cost per vehicle of not
more than $19,500. A vehicle may be purchased with such funds
only as necessary to replace another passenger motor vehicle
of the Commission.

SEC. 3503. EXPENDITURES IN ACCORDANCE WITH OTHER LAWS.

Expenditures authorized under this subtitle may be made
only in accordance with the Panama Canal Treaties of 1977 and
any law of the United States implementing those treaties.
Subtitle B--Reconstitution of Commission as Government Corporation

SEC. 3521. SHORT TITLE.

This subtitle may be cited as the ``Panama Canal Amendments
Act of 1995''.

SEC. 3522. RECONSTITUTION OF COMMISSION AS GOVERNMENT
CORPORATION.

(a) In General.--Section 1101 of the Panama Canal Act of
1979 (22 U.S.C. 3611) is amended to read as follows:

``establishment, purposes, offices, and residence of commission

``Sec. 1101. (a) For the purposes of managing, operating,
and maintaining the Panama Canal and its complementary works,
installations and equipment, and of conducting operations
incident thereto, in accordance with the Panama Canal Treaty
of 1977 and related agreements, the Panama Canal Commission
(hereinafter in this Act referred to as the `Commission') is
established as a wholly owned government corporation (as that
term is used in chapter 91 of title 31, United States Code)
within the executive branch of the Government of the United
States. The authority of the President with respect to the
Commission shall be exercised through the Secretary of
Defense.
``(b) The principal office of the Commission shall be
located in the Republic of Panama in one of the areas made
available for use of the United States under the Panama Canal
Treaty of 1977 and related agreements, but the Commission may
establish branch offices in such other places as it considers
necessary or appropriate for the conduct of its business.
Within the meaning of the laws of the United States relating
to venue in civil actions, the Commission is an inhabitant
and resident of the District of Columbia and the eastern
judicial district of Louisiana.''.
(b) Clerical Amendment.--The item relating to such section
in the table of contents in section 1 of such Act is amended
to read as follows:

``1101. Establishment, Purposes, Offices, and Residence of
Commission.''.

SEC. 3523. SUPERVISORY BOARD.

Section 1102 of the Panama Canal Act of 1979 (22 U.S.C.
3612) is amended by striking out so much as precedes
subsection (b) and inserting in lieu thereof the following:

``supervisory board

``Sec. 1102. (a) The Commission shall be supervised by a
Board composed of nine members, one of whom shall be the
Secretary of Defense or an officer of the Department of
Defense designated by the Secretary. Not less than five
members of the Board shall be nationals of the United States
and the remaining members of the Board shall be nationals of
the Republic of Panama. Three members of the Board who are
nationals of the United States shall hold no other office in,
and shall not be employed by, the Government of the United
States, and shall be chosen for the independent perspective
they can bring to the Commission's affairs. Members of the
Board who are nationals of the United States shall cast their
votes as directed by the Secretary of Defense or a designee
of the Secretary of Defense.''.

SEC. 3524. GENERAL AND SPECIFIC POWERS OF COMMISSION.

(a) In General.--The Panama Canal Act of 1979 (22 U.S.C.
3601 et seq.) is amended by inserting after section 1102 the
following new sections:

``general powers of commission

``Sec. 1102a. (a) The Commission may adopt, alter, and use
a corporate seal, which shall be judicially noticed.
``(b) The Commission may by action of the Board of
Directors adopt, amend, and repeal bylaws governing the
conduct of its general business and the performance of the
powers and duties granted to or imposed upon it by law.
``(c) The Commission may sue and be sued in its corporate
name, except that--
``(1) the amenability of the Commission to suit is limited
by Article VIII of the Panama Canal Treaty of 1977, section
1401 of this Act, and otherwise by law;
``(2) an attachment, garnishment, or similar process may
not be issued against salaries or other moneys owed by the
Commission to its employees except as provided by section
5520a of title 5, United States Code, and sections 459, 461,
and 462 of the Social Security Act (42 U.S.C. 659, 661, 662),
or as otherwise specifically authorized by the laws of the
United States; and
``(3) the Commission is exempt from the payment of interest
on claims and judgments.
``(d) The Commission may enter into contracts, leases,
agreements, or other transactions.
``(e) The Commission--
``(1) may determine the character of, and necessity for,
its obligations and expenditures and the manner in which they
shall be incurred, allowed, and paid; and
``(2) may incur, allow, and pay its obligations and
expenditures, subject to pertinent provisions of law
generally applicable to Government corporations.
``(f) The Commission shall have the priority of the
Government of the United States in the payment of debts out
of bankrupt estates.
``(g) The authority of the Commission under this section
and section 1102B is subject to the Panama Canal Treaty of
1977 and related agreements, and to chapter 91 of title 31,
United States Code.

``specific powers of commission

``Sec. 1102b. (a) The Commission may manage, operate, and
maintain the Panama Canal.
``(b) The Commission may construct or acquire, establish,
maintain, and operate such activities, facilities, and
appurtenances as necessary and appropriate for the
accomplishment of the purposes of this Act, including the
following:
``(1) Docks, wharves, piers, and other shoreline
facilities.
``(2) Shops and yards.
``(3) Marine railways, salvage and towing facilities, fuel-
handling facilities, and motor transportation facilities.
``(4) Power systems, water systems, and a telephone system.
``(5) Construction facilities.
``(6) Living quarters and other buildings.
``(7) Warehouses, storehouses, a printing plant, and
manufacturing, processing, or service facilities in
connection therewith.
``(8) Recreational facilities.
``(c) The Commission may use the United States mails in the
same manner and under the same conditions as the executive
departments of the Federal Government.
``(d) The Commission may take such actions as are necessary
or appropriate to carry out the powers specifically conferred
upon it.''.
(b) Clerical Amendment.--The table of contents in section 1
of such Act is amended by inserting after the item relating
to section 1102 the following new items:
``1102a. General powers of Commission.
``1102b. Specific powers of Commission.''.

SEC. 3525. CONGRESSIONAL REVIEW OF BUDGET.

Section 1302 of the Panama Canal Act of 1979 (22 U.S.C.
3712) is amended--
(1) in subsection (c)--
(A) by striking out ``and subject to paragraph (2)'' in
paragraph (1);
(B) by striking out paragraph (2); and
(C) by redesignating paragraph (3) as paragraph (2); and
(2) by striking out subsection (e) and inserting in lieu
thereof the following new subsection (e):
``(e) In accordance with section 9104 of title 31, United
States Code, Congress shall review the annual budget of the
Commission.''.

SEC. 3526. AUDITS.

(a) In General.--Section 1313 of the Panama Canal Act of
1979 (22 U.S.C. 3723) is amended--
(1) by striking out the heading for the section and
inserting in lieu thereof the following: ``audits'';
(2) in subsection (a)--
(A) by striking out ``Financial transactions'' and
inserting in lieu thereof ``Notwithstanding any other
provision of law, and subject to subsection (d), financial
transactions'';
(B) by striking out ``pursuant to the Accounting and
Auditing Act of 1950 (31 U.S.C. 65 et seq.)'';
(C) by striking out ``audit pursuant to such Act'' in the
second sentence and inserting in lieu thereof ``such audit'';
(D) by striking out ``An audit pursuant to such Act'' in
the last sentence and inserting in lieu thereof ``Any such
audit''; and
(E) by adding at the end the following new sentence: ``An
audit performed under this section is subject to the
requirements of paragraphs (2), (3), and (5) of section
9105(a) of title 31, United States Code.'';
(3) in subsection (b), by striking out ``The Comptroller
General'' in the first sentence and inserting in lieu thereof
``Subject to subsection (d), the Comptroller General''; and
(4) by adding at the end the following new subsections:
``(d) At the discretion of the Board provided for in
section 1102, the Commission may hire independent auditors to
perform, in lieu of the Comptroller General, the audit and
reporting functions prescribed in subsections (a) and (b).
``(e) In addition to auditing the financial statements of
the Commission, the Comptroller General (or the independent
auditor if one is employed pursuant to subsection (d)) shall,
in accordance with standards for an examination of a
financial forecast established by the American Institute
of Certified Public Accountants, examine and report on the
Commission's financial forecast that it will be in a
position to meet its financial liabilities on December 31,
1999.''.

[[Page H484]]

(b) Clerical Amendment.--The item relating to such section
in the table of contents in section 1 of such Act is amended
to read as follows:

``1313. Audits.''.

SEC. 3527. PRESCRIPTION OF MEASUREMENT RULES AND RATES OF
TOLLS.

Section 1601 of the Panama Canal Act of 1979 (22 U.S.C.
3791) is amended to read as follows:

``prescription of measurement rules and rates of tolls

``Sec. 1601. The Commission may, subject to the provisions
of this Act, prescribe and from time to time change--
``(1) the rules for the measurement of vessels for the
Panama Canal; and
``(2) the tolls that shall be levied for use of the Panama
Canal.''.

SEC. 3528. PROCEDURES FOR CHANGES IN RULES OF MEASUREMENT AND
RATES OF TOLLS.

Section 1604 of the Panama Canal Act of 1979 (22 U.S.C.
3794) is amended--
(1) in subsection (a), by striking out ``1601(a)'' in the
first sentence and inserting in lieu thereof ``1601'';
(2) by striking out subsection (c) and inserting in lieu
thereof the following new subsection (c):
``(c) After the proceedings have been conducted pursuant to
subsections (a) and (b), the Commission may change the rules
of measurement or rates of tolls, as the case may be. The
Commission shall publish notice of any such change in the
Federal Register not less than 30 days before the effective
date of the change.''; and
(3) by striking out subsections (d) and (e) and
redesignating subsection (f) as subsection (d).

SEC. 3529. MISCELLANEOUS TECHNICAL AMENDMENTS.

The Panama Canal Act of 1979 is amended--
(1) in section 1205 (22 U.S.C. 3645), by striking out
``appropriation'' in the last sentence and inserting in lieu
thereof ``fund'';
(2) in section 1303 (22 U.S.C. 3713), by striking out ``The
authority of this section may not be used for administrative
expenses.'';
(3) in section 1321(d) (22 U.S.C. 3731(d)), by striking out
``appropriations or'' in the second sentence;
(4) in section 1401(c) (22 U.S.C. 3761(c)), by striking out
``appropriated for or'' in the first sentence;
(5) in section 1415 (22 U.S.C. 3775), by striking out
``appropriated or'' in the second sentence; and
(6) in section 1416 (22 U.S.C. 3776), by striking out
``appropriated or'' in the third sentence.

SEC. 3530. CONFORMING AMENDMENT TO TITLE 31, UNITED STATES
CODE.

Section 9101(3) of title 31, United States Code, is amended
by adding at the end the following:
``(P) the Panama Canal Commission.''.
DIVISION D--FEDERAL ACQUISITION REFORM

SEC. 4001. SHORT TITLE.

This division may be cited as the ``Federal Acquisition
Reform Act of 1996''.
TITLE XLI--COMPETITION

SEC. 4101. EFFICIENT COMPETITION.

(a) Armed Services Acquisitions.--Section 2304 of title 10,
United States Code, is amended--
(1) by redesignating subsection (j) as subsection (k); and
(2) by inserting after subsection (i) the following new
subsection (j):
``(j) The Federal Acquisition Regulation shall ensure that
the requirement to obtain full and open competition is
implemented in a manner that is consistent with the need to
efficiently fulfill the Government's requirements.''.
(b) Civilian Agency Acquisitions.--Section 303 of the
Federal Property and Administrative Services Act of 1949 (41
U.S.C. 253) is amended--
(1) by redesignating subsection (h) as subsection (i); and
(2) by inserting after subsection (g) the following new
subsection (h):
``(h) The Federal Acquisition Regulation shall ensure that
the requirement to obtain full and open competition is
implemented in a manner that is consistent with the need to
efficiently fulfill the Government's requirements.''.
(c) Revisions to Notice Thresholds.--Section 18(a)(1)(B) of
the Office of Federal Procurement Policy Act (41 U.S.C.
416(a)(1)(B)) is amended--
(A) by striking out ``subsection (f)--'' and all that
follows through the end of the subparagraph and inserting in
lieu thereof ``subsection (b); and''; and
(B) by inserting after ``property or services'' the
following: ``for a price expected to exceed $10,000, but not
to exceed $25,000,''.

SEC. 4102. EFFICIENT APPROVAL PROCEDURES.

(a) Armed Services Acquisitions.--Section 2304(f)(1)(B) of
title 10, United States Code, is amended--
(1) in clause (i)--
(A) by striking out ``$100,000 (but equal to or less than
$1,000,000)'' and inserting in lieu thereof ``$500,000 (but
equal to or less than $10,000,000)''; and
(B) by striking out ``(ii), (iii), or (iv)'' and inserting
in lieu thereof ``(ii) or (iii)'';
(2) in clause (ii)--
(A) by striking out ``$1,000,000 (but equal to or less than
$10,000,000)'' and inserting in lieu thereof ``$10,000,000
(but equal to or less than $50,000,000)''; and
(B) by adding ``or'' at the end;
(3) by striking out clause (iii); and
(4) by redesignating clause (iv) as clause (iii).
(b) Civilian Agency Acquisitions.--Section 303(f)(1)(B) of
the Federal Property and Administrative Services Act of 1949
(41 U.S.C. 253(f)(1)(B)) is amended--
(1) in clause (i)--
(A) by striking out ``$100,000 (but equal to or less than
$1,000,000)'' and inserting in lieu thereof ``$500,000 (but
equal to or less than $10,000,000)''; and
(B) by striking out ``(ii), (iii), or (iv);'' and inserting
in lieu thereof ``(ii) or (iii); and'';
(2) in clause (ii)--
(A) by striking out ``$1,000,000 (but equal to or less than
$10,000,000)'' and inserting in lieu thereof ``$10,000,000
(but equal to or less than $50,000,000)''; and
(B) by striking out the semicolon after ``civilian'' and
inserting in lieu thereof a comma; and
(3) in clause (iii), by striking out ``$10,000,000'' and
inserting in lieu thereof ``$50,000,000''.

SEC. 4103. EFFICIENT COMPETITIVE RANGE DETERMINATIONS.

(a) Armed Services Acquisitions.--Paragraph (4) of 2305(b)
of title 10, United States Code, is amended--
(1) in subparagraph (C), by striking out ``(C)'', by
transferring the text to the end of subparagraph (B), and in
that text by striking out ``Subparagraph (B)'' and inserting
in lieu thereof ``This subparagraph'';
(2) by redesignating subparagraph (B) as subparagraph (C);
and
(3) by inserting before subparagraph (C) (as so
redesignated) the following new subparagraph (B):
``(B) If the contracting officer determines that the number
of offerors that would otherwise be included in the
competitive range under subparagraph (A)(i) exceeds the
number at which an efficient competition can be conducted,
the contracting officer may limit the number of proposals in
the competitive range, in accordance with the criteria
specified in the solicitation, to the greatest number that
will permit an efficient competition among the offerors rated
most highly in accordance with such criteria.''.
(b) Civilian Agency Acquisitions.--Section 303B(d) of the
Federal Property and Administrative Services Act of 1949 (41
U.S.C. 253b(d)) is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting before paragraph (3) (as so redesignated)
the following new paragraph (2):
``(2) If the contracting officer determines that the number
of offerors that would otherwise be included in the
competitive range under paragraph (1)(A) exceeds the number
at which an efficient competition can be conducted, the
contracting officer may limit the number of proposals in the
competitive range, in accordance with the criteria specified
in the solicitation, to the greatest number that will permit
an efficient competition among the offerors rated most highly
in accordance with such criteria.''.

SEC. 4104. PREAWARD DEBRIEFINGS.

(a) Armed Services Acquisitions.--Section 2305(b) of title
10, United States Code, is amended--
(1) by striking out subparagraph (F) of paragraph (5);
(2) by redesignating paragraph (6) as paragraph (9); and
(3) by inserting after paragraph (5) the following new
paragraphs:
``(6)(A) When the contracting officer excludes an offeror
submitting a competitive proposal from the competitive range
(or otherwise excludes such an offeror from further
consideration prior to the final source selection decision),
the excluded offeror may request in writing, within three
days after the date on which the excluded offeror receives
notice of its exclusion, a debriefing prior to award. The
contracting officer shall make every effort to debrief the
unsuccessful offeror as soon as practicable but may refuse
the request for a debriefing if it is not in the best
interests of the Government to conduct a debriefing at that
time.
``(B) The contracting officer is required to debrief an
excluded offeror in accordance with paragraph (5) of this
section only if that offeror requested and was refused a
preaward debriefing under subparagraph (A) of this paragraph.
``(C) The debriefing conducted under this subsection shall
include--
``(i) the executive agency's evaluation of the significant
elements in the offeror's offer;
``(ii) a summary of the rationale for the offeror's
exclusion; and
``(iii) reasonable responses to relevant questions posed by
the debriefed offeror as to whether source selection
procedures set forth in the solicitation, applicable
regulations, and other applicable authorities were followed
by the executive agency.
``(D) The debriefing conducted pursuant to this subsection
may not disclose the number or identity of other offerors and
shall not disclose information about the content, ranking, or
evaluation of other offerors' proposals.
``(7) The contracting officer shall include a summary of
any debriefing conducted under paragraph (5) or (6) in the
contract file.
``(8) The Federal Acquisition Regulation shall include a
provision encouraging the use of alternative dispute
resolution techniques

[[Page H485]]
to provide informal, expeditious, and inexpensive procedures for an
offeror to consider using before filing a protest, prior to
the award of a contract, of the exclusion of the offeror from
the competitive range (or otherwise from further
consideration) for that contract.''.
(b) Civilian Agency Acquisitions.--Section 303B of the
Federal Property and Administrative Services Act of 1949 (41
U.S.C. 253b) is amended--
(1) by striking out paragraph (6) of subsection (e);
(2) by redesignating subsections (f), (g), (h), and (i) as
subsections (i), (j), (k), and (l), respectively; and
(3) by inserting after subsection (e) the following new
subsections:
``(f)(1) When the contracting officer excludes an offeror
submitting a competitive proposal from the competitive range
(or otherwise excludes such an offeror from further
consideration prior to the final source selection decision),
the excluded offeror may request in writing, within 3 days
after the date on which the excluded offeror receives notice
of its exclusion, a debriefing prior to award. The
contracting officer shall make every effort to debrief the
unsuccessful offeror as soon as practicable but may refuse
the request for a debriefing if it is not in the best
interests of the Government to conduct a debriefing at that
time.
``(2) The contracting officer is required to debrief an
excluded offeror in accordance with subsection (e) of this
section only if that offeror requested and was refused a
preaward debriefing under paragraph (1) of this
subsection.
``(3) The debriefing conducted under this subsection shall
include--
``(A) the executive agency's evaluation of the significant
elements in the offeror's offer;
``(B) a summary of the rationale for the offeror's
exclusion; and
``(C) reasonable responses to relevant questions posed by
the debriefed offeror as to whether source selection
procedures set forth in the solicitation, applicable
regulations, and other applicable authorities were followed
by the executive agency.
``(4) The debriefing conducted pursuant to this subsection
may not disclose the number or identity of other offerors and
shall not disclose information about the content, ranking, or
evaluation of other offerors' proposals.
``(g) The contracting officer shall include a summary of
any debriefing conducted under subsection (e) or (f) in the
contract file.
``(h) The Federal Acquisition Regulation shall include a
provision encouraging the use of alternative dispute
resolution techniques to provide informal, expeditious, and
inexpensive procedures for an offeror to consider using
before filing a protest, prior to the award of a contract, of
the exclusion of the offeror from the competitive range (or
otherwise from further consideration) for that contract.''.

SEC. 4105. DESIGN-BUILD SELECTION PROCEDURES.

(a) Armed Services Acquisitions.--(1) Chapter 137 of title
10, United States Code, is amended by inserting after section
2305 the following new section:

``Sec. 2305a. Design-build selection procedures

``(a) Authorization.--Unless the traditional acquisition
approach of design-bid-build established under the Brooks
Architect-Engineers Act (41 U.S.C. 541 et seq.) is used or
another acquisition procedure authorized by law is used, the
head of an agency shall use the two-phase selection
procedures authorized in this section for entering into a
contract for the design and construction of a public
building, facility, or work when a determination is made
under subsection (b) that the procedures are appropriate for
use.
``(b) Criteria for Use.--A contracting officer shall make a
determination whether two-phase selection procedures are
appropriate for use for entering into a contract for the
design and construction of a public building, facility, or
work when the contracting officer anticipates that three or
more offers will be received for such contract, design work
must be performed before an offeror can develop a price or
cost proposal for such contract, the offeror will incur a
substantial amount of expense in preparing the offer, and the
contracting officer has considered information such as the
following:
``(1) The extent to which the project requirements have
been adequately defined.
``(2) The time constraints for delivery of the project.
``(3) The capability and experience of potential
contractors.
``(4) The suitability of the project for use of the two-
phase selection procedures.
``(5) The capability of the agency to manage the two-phase
selection process.
``(6) Other criteria established by the agency.
``(c) Procedures Described.--Two-phase selection procedures
consist of the following:
``(1) The agency develops, either in-house or by contract,
a scope of work statement for inclusion in the solicitation
that defines the project and provides prospective offerors
with sufficient information regarding the Government's
requirements (which may include criteria and preliminary
design, budget parameters, and schedule or delivery
requirements) to enable the offerors to submit proposals
which meet the Government's needs. If the agency contracts
for development of the scope of work statement, the agency
shall contract for architectural and engineering services as
defined by and in accordance with the Brooks Architect-
Engineers Act (40 U.S.C. 541 et seq.).
``(2) The contracting officer solicits phase-one proposals
that--
``(A) include information on the offeror's--
``(i) technical approach; and
``(ii) technical qualifications; and
``(B) do not include--
``(i) detailed design information; or
``(ii) cost or price information.
``(3) The evaluation factors to be used in evaluating
phase-one proposals are stated in the solicitation and
include specialized experience and technical competence,
capability to perform, past performance of the offeror's team
(including the architect-engineer and construction members of
the team) and other appropriate factors, except that cost-
related or price-related evaluation factors are not
permitted. Each solicitation establishes the relative
importance assigned to the evaluation factors and subfactors
that must be considered in the evaluation of phase-one
proposals. The agency evaluates phase-one proposals on the
basis of the phase-one evaluation factors set forth in the
solicitation.
``(4) The contracting officer selects as the most highly
qualified the number of offerors specified in the
solicitation to provide the property or services under the
contract and requests the selected offerors to submit phase-
two competitive proposals that include technical proposals
and cost or price information. Each solicitation establishes
with respect to phase two--
``(A) the technical submission for the proposal, including
design concepts or proposed solutions to requirements
addressed within the scope of work (or both), and
``(B) the evaluation factors and subfactors, including cost
or price, that must be considered in the evaluations of
proposals in accordance with paragraphs (2), (3), and (4) of
section 2305(a) of this title.
The contracting officer separately evaluates the submissions
described in subparagraphs (A) and (B).
``(5) The agency awards the contract in accordance with
section 2305(b)(4) of this title.
``(d) Solicitation to State Number of Offerors To Be
Selected for Phase Two Requests for Competitive Proposals.--A
solicitation issued pursuant to the procedures described in
subsection (c) shall state the maximum number of offerors
that are to be selected to submit competitive proposals
pursuant to subsection (c)(4). The maximum number specified
in the solicitation shall not exceed 5 unless the agency
determines with respect to an individual solicitation that a
specified number greater than 5 is in the Government's
interest and is consistent with the purposes and objectives
of the two-phase selection process.
``(e) Requirement for Guidance and Regulations.--The
Federal Acquisition Regulation shall include guidance--
``(1) regarding the factors that may be considered in
determining whether the two-phase contracting procedures
authorized by subsection (a) are appropriate for use in
individual contracting situations;
``(2) regarding the factors that may be used in selecting
contractors; and
``(3) providing for a uniform approach to be used
Government-wide.''.
(2) The table of sections at the beginning of chapter 137
of such title is amended by adding after the item relating to
section 2305 the following new item:

``2305a. Design-build selection procedures.''.

(b) Civilian Agency Acquisitions.--(1) Title III of the
Federal Property and Administrative Services Act of 1949 (41
U.S.C. 251 et seq.) is amended by inserting after section
303L the following new section:

``SEC. 303M. DESIGN-BUILD SELECTION PROCEDURES.

``(a) Authorization.--Unless the traditional acquisition
approach of design-bid-build established under the Brooks
Architect-Engineers Act (title IX of this Act) is used or
another acquisition procedure authorized by law is used, the
head of an executive agency shall use the two-phase selection
procedures authorized in this section for entering into a
contract for the design and construction of a public
building, facility, or work when a determination is made
under subsection (b) that the procedures are appropriate for
use.
``(b) Criteria for Use.--A contracting officer shall make a
determination whether two-phase selection procedures are
appropriate for use for entering into a contract for the
design and construction of a public building, facility, or
work when the contracting officer anticipates that three or
more offers will be received for such contract, design work
must be performed before an offeror can develop a price or
cost proposal for such contract, the offeror will incur a
substantial amount of expense in preparing the offer, and the
contracting officer has considered information such as the
following:
``(1) The extent to which the project requirements have
been adequately defined.
``(2) The time constraints for delivery of the project.
``(3) The capability and experience of potential
contractors.
``(4) The suitability of the project for use of the two-
phase selection procedures.
``(5) The capability of the agency to manage the two-phase
selection process.
``(6) Other criteria established by the agency.
``(c) Procedures Described.--Two-phase selection procedures
consist of the following:

[[Page H486]]

``(1) The agency develops, either in-house or by contract,
a scope of work statement for inclusion in the solicitation
that defines the project and provides prospective offerors
with sufficient information regarding the Government's
requirements (which may include criteria and preliminary
design, budget parameters, and schedule or delivery
requirements) to enable the offerors to submit proposals
which meet the Government's needs. If the agency contracts
for development of the scope of work statement, the agency
shall contract for architectural and engineering services as
defined by and in accordance with the Brooks Architect-
Engineers Act (40 U.S.C. 541 et seq.).
``(2) The contracting officer solicits phase-one proposals
that--
``(A) include information on the offeror's--
``(i) technical approach; and
``(ii) technical qualifications; and
``(B) do not include--
``(i) detailed design information; or
``(ii) cost or price information.
``(3) The evaluation factors to be used in evaluating
phase-one proposals are stated in the solicitation and
include specialized experience and technical competence,
capability to perform, past performance of the offeror's team
(including the architect-engineer and construction members of
the team) and other appropriate factors, except that cost-
related or price-related evaluation factors are not
permitted. Each solicitation establishes the relative
importance assigned to the evaluation factors and subfactors
that must be considered in the evaluation of phase-one
proposals. The agency evaluates phase-one proposals on the
basis of the phase-one evaluation factors set forth in the
solicitation.
``(4) The contracting officer selects as the most highly
qualified the number of offerors specified in the
solicitation to provide the property or services under the
contract and requests the selected offerors to submit phase-
two competitive proposals that include technical proposals
and cost or price information. Each solicitation establishes
with respect to phase two--
``(A) the technical submission for the proposal, including
design concepts or proposed solutions to requirements
addressed within the scope of work (or both), and
``(B) the evaluation factors and subfactors, including cost
or price, that must be considered in the evaluations of
proposals in accordance with subsections (b), (c), and (d)
of section 303A.
The contracting officer separately evaluates the submissions
described in subparagraphs (A) and (B).
``(5) The agency awards the contract in accordance with
section 303B of this title.
``(d) Solicitation to State Number of Offerors To Be
Selected for Phase Two Requests for Competitive Proposals.--A
solicitation issued pursuant to the procedures described in
subsection (c) shall state the maximum number of offerors
that are to be selected to submit competitive proposals
pursuant to subsection (c)(4). The maximum number specified
in the solicitation shall not exceed 5 unless the agency
determines with respect to an individual solicitation that a
specified number greater than 5 is in the Government's
interest and is consistent with the purposes and objectives
of the two-phase selection process.
``(e) Requirement for Guidance and Regulations.--The
Federal Acquisition Regulation shall include guidance--
``(1) regarding the factors that may be considered in
determining whether the two-phase contracting procedures
authorized by subsection (a) are appropriate for use in
individual contracting situations;
``(2) regarding the factors that may be used in selecting
contractors; and
``(3) providing for a uniform approach to be used
Government-wide.''.
(2) The table of sections at the beginning of such Act is
amended by inserting after the item relating to section 303L
the following new item:

``Sec. 303M. Design-build selection procedures.''.
TITLE XLII--COMMERCIAL ITEMS

SEC. 4201. COMMERCIAL ITEM EXCEPTION TO REQUIREMENT FOR
CERTIFIED COST OR PRICING DATA.

(a) Armed Services Acquisitions.--(1) Subsections (b), (c),
and (d) of section 2306a of title 10, United States Code, are
amended to read as follows:
``(b) Exceptions.--
``(1) In general.--Submission of certified cost or pricing
data shall not be required under subsection (a) in the case
of a contract, a subcontract, or modification of a contract
or subcontract--
``(A) for which the price agreed upon is based on--
``(i) adequate price competition; or
``(ii) prices set by law or regulation;
``(B) for the acquisition of a commercial item; or
``(C) in an exceptional case when the head of the procuring
activity, without delegation, determines that the
requirements of this section may be waived and justifies in
writing the reasons for such determination.
``(2) Modifications of contracts and subcontracts for
commercial items.--In the case of a modification of a
contract or subcontract for a commercial item that is not
covered by the exception to the submission of certified cost
or pricing data in paragraph (1)(A) or (1)(B), submission of
certified cost or pricing data shall not be required under
subsection (a) if--
``(A) the contract or subcontract being modified is a
contract or subcontract for which submission of certified
cost or pricing data may not be required by reason of
paragraph (1)(A) or (1)(B); and
``(B) the modification would not change the contract or
subcontract, as the case may be, from a contract or
subcontract for the acquisition of a commercial item to a
contract or subcontract for the acquisition of an item other
than a commercial item.
``(c) Cost or Pricing Data on Below-Threshold Contracts.--
``(1) Authority to require submission.--Subject to
paragraph (2), when certified cost or pricing data are not
required to be submitted by subsection (a) for a contract,
subcontract, or modification of a contract or subcontract,
such data may nevertheless be required to be submitted by the
head of the procuring activity, but only if the head of the
procuring activity determines that such data are necessary
for the evaluation by the agency of the reasonableness of the
price of the contract, subcontract, or modification of a
contract or subcontract. In any case in which the head of the
procuring activity requires such data to be submitted under
this subsection, the head of the procuring activity shall
justify in writing the reason for such requirement.
``(2) Exception.--The head of the procuring activity may
not require certified cost or pricing data to be submitted
under this paragraph for any contract or subcontract, or
modification of a contract or subcontract, covered by the
exceptions in subparagraph (A) or (B) of subsection (b)(1).
``(3) Delegation of authority prohibited.--The head of a
procuring activity may not delegate functions under this
paragraph.
``(d) Submission of Other Information.--
``(1) Authority to require submission.--When certified cost
or pricing data are not required to be submitted under this
section for a contract, subcontract, or modification of a
contract or subcontract, the contracting officer shall
require submission of data other than certified cost or
pricing data to the extent necessary to determine the
reasonableness of the price of the contract, subcontract, or
modification of the contract or subcontract. Except in the
case of a contract or subcontract covered by the exceptions
in subsection (b)(1)(A), the data submitted shall include, at
a minimum, appropriate information on the prices at which the
same item or similar items have previously been sold that is
adequate for evaluating the reasonableness of the price
for the procurement.
``(2) Limitations on authority.--The Federal Acquisition
Regulation shall include the following provisions regarding
the types of information that contracting officers may
require under paragraph (1):
``(A) Reasonable limitations on requests for sales data
relating to commercial items.
``(B) A requirement that a contracting officer limit, to
the maximum extent practicable, the scope of any request for
information relating to commercial items from an offeror to
only that information that is in the form regularly
maintained by the offeror in commercial operations.
``(C) A statement that any information received relating to
commercial items that is exempt from disclosure under section
552(b) of title 5 shall not be disclosed by the Federal
Government.''.
(2) Section 2306a of such title is further amended--
(A) by striking out subsection (h); and
(B) by redesignating subsection (i) as subsection (h).
(b) Civilian Agency Acquisitions.--(1) Subsections (b), (c)
and (d) of section 304A of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 254b) are
amended to read as follows:
``(b) Exceptions.--
``(1) In general.--Submission of certified cost or pricing
data shall not be required under subsection (a) in the case
of a contract, a subcontract, or a modification of a contract
or subcontract--
``(A) for which the price agreed upon is based on--
``(i) adequate price competition; or
``(ii) prices set by law or regulation;
``(B) for the acquisition of a commercial item; or
``(C) in an exceptional case when the head of the procuring
activity, without delegation, determines that the
requirements of this section may be waived and justifies in
writing the reasons for such determination.
``(2) Modifications of contracts and subcontracts for
commercial items.--In the case of a modification of a
contract or subcontract for a commercial item that is not
covered by the exception to the submission of certified cost
or pricing data in paragraph (1)(A) or (1)(B), submission of
certified cost or pricing data shall not be required under
subsection (a) if--
``(A) the contract or subcontract being modified is a
contract or subcontract for which submission of certified
cost or pricing data may not be required by reason of
paragraph (1)(A) or (1)(B); and
``(B) the modification would not change the contract or
subcontract, as the case may be, from a contract or
subcontract for the acquisition of a commercial item to a
contract or subcontract for the acquisition of an item other
than a commercial item.
``(c) Cost or Pricing Data on Below-Threshold Contracts.--
``(1) Authority to require submission.--Subject to
paragraph (2), when certified cost

[[Page H487]]
or pricing data are not required to be submitted by subsection (a) for
a contract, subcontract, or modification of a contract or
subcontract, such data may nevertheless be required to be
submitted by the head of the procuring activity, but only if
the head of the procuring activity determines that such data
are necessary for the evaluation by the agency of the
reasonableness of the price of the contract, subcontract, or
modification of a contract or subcontract. In any case in
which the head of the procuring activity requires such data
to be submitted under this subsection, the head of the
procuring activity shall justify in writing the reason for
such requirement.
``(2) Exception.--The head of the procuring activity may
not require certified cost or pricing data to be submitted
under this paragraph for any contract or subcontract, or
modification of a contract or subcontract, covered by the
exceptions in subparagraph (A) or (B) of subsection (b)(1).
``(3) Delegation of authority prohibited.--The head of a
procuring activity may not delegate the functions under this
paragraph.
``(d) Submission of Other Information.--
``(1) Authority to require submission.--When certified cost
or pricing data are not required to be submitted under this
section for a contract, subcontract, or modification of a
contract or subcontract, the contracting officer shall
require submission of data other than certified cost or
pricing data to the extent necessary to determine the
reasonableness of the price of the contract, subcontract, or
modification of the contract or subcontract. Except in the
case of a contract or subcontract covered by the exceptions
in subsection (b)(1)(A), the data submitted shall include, at
a minimum, appropriate information on the prices at which the
same item or similar items have previously been sold that is
adequate for evaluating the reasonableness of the price for
the procurement.
``(2) Limitations on authority.--The Federal Acquisition
Regulation shall include the following provisions regarding
the types of information that contracting officers may
require under paragraph (1):
``(A) Reasonable limitations on requests for sales data
relating to commercial items.
``(B) A requirement that a contracting officer limit, to
the maximum extent practicable, the scope of any request for
information relating to commercial items from an offeror to
only that information that is in the form regularly
maintained by the offeror in commercial operations.
``(C) A statement that any information received relating to
commercial items that is exempt from disclosure under section
552(b) of title 5 shall not be disclosed by the Federal
Government.''.
(2) Section 304A of such Act is further amended--
(A) by striking out subsection (h); and
(B) by redesignating subsection (i) as subsection (h).

SEC. 4202. APPLICATION OF SIMPLIFIED PROCEDURES TO CERTAIN
COMMERCIAL ITEMS.

(a) Armed Services Acquisitions.--(1) Section 2304(g) of
title 10, United States Code, is amended--
(A) in paragraph (1), by striking out ``shall provide for
special simplified procedures for purchases of'' and all that
follows through the end of the paragraph and inserting in
lieu thereof the following: ``shall provide for--
``(A) special simplified procedures for purchases of
property and services for amounts not greater than the
simplified acquisition threshold; and
``(B) special simplified procedures for purchases of
property and services for amounts greater than the simplified
acquisition threshold but not greater than $5,000,000 with
respect to which the contracting officer reasonably expects,
based on the nature of the property or services sought and on
market research, that offers will include only commercial
items.''; and
(B) by adding at the end the following new paragraph:
``(4) The head of an agency shall comply with the Federal
Acquisition Regulation provisions referred to in section
31(g) of the Office of Federal Procurement Policy Act (41
U.S.C. 427).''.
(2) Section 2305 of title 10, United States Code, is
amended in subsection (a)(2) by inserting after ``(other than
for'' the following: ``a procurement for commercial items
using special simplified procedures or''.
(b) Civilian Agency Acquisitions.--(1) Section 303(g) of
the Federal Property and Administrative Services Act of 1949
(41 U.S.C. 253(g)) is amended--
(A) in paragraph (1), by striking out ``shall provide for
special simplified procedures for purchases of'' and all that
follows through the end of the paragraph and inserting in
lieu thereof the following: ``shall provide for--
``(A) special simplified procedures for purchases of
property and services for amounts not greater than the
simplified acquisition threshold; and
``(B) special simplified procedures for purchases of
property and services for amounts greater than the simplified
acquisition threshold but not greater than $5,000,000 with
respect to which the contracting officer reasonably expects,
based on the nature of the property or services sought and on
market research, that offers will include only commercial
items.''; and
(B) by adding at the end the following new paragraph:
``(5) An executive agency shall comply with the Federal
Acquisition Regulation provisions referred to in section
31(g) of the Office of Federal Procurement Policy Act (41
U.S.C. 427).''.
(2) Section 303A of such Act (41 U.S.C. 253a) is amended in
subsection (b) by inserting after ``(other than for'' the
following: ``a procurement for commercial items using special
simplified procedures or''.
(c) Acquisitions Generally.--Section 31 of the Office of
Federal Procurement Policy Act (41 U.S.C. 427) is amended--
(1) in subsection (a), by striking out ``shall provide for
special simplified procedures for purchases of'' and all that
follows through the end of the subsection and inserting in
lieu thereof the following: ``shall provide for--
``(1) special simplified procedures for purchases of
property and services for amounts not greater than the
simplified acquisition threshold; and
``(2) special simplified procedures for purchases of
property and services for amounts greater than the simplified
acquisition threshold but not greater than $5,000,000 with
respect to which the contracting officer reasonably expects,
based on the nature of the property or services sought and on
market research, that offers will include only commercial
items.''; and
(2) by adding at the end the following new subsection:
``(g) Special Rules for Commercial Items.--The Federal
Acquisition Regulation shall provide that, in the case of a
purchase of commercial items using special simplified
procedures, an executive agency--
``(1) shall publish a notice in accordance with section 18
and, as provided in subsection (b)(4) of such section, permit
all responsible sources to submit a bid, proposal, or
quotation (as appropriate) which shall be considered by the
agency;
``(2) may not conduct the purchase on a sole source basis
unless the need to do so is justified in writing and approved
in accordance with section 2304 of title 10, United States
Code, or section 303 of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253), as
applicable; and
``(3) shall include in the contract file a written
description of the procedures used in awarding the contract
and the number of offers received.''.
(d) Simplified Notice.--(1) Section 18 of the Office of
Federal Procurement Policy Act (41 U.S.C. 416) is amended--
(A) in subsection (a)(6), by inserting before
``submission'' the following: ``issuance of solicitations and
the''; and
(B) in subsection (b)(6), by striking out ``threshold--''
and inserting in lieu thereof ``threshold, or a contract for
the procurement of commercial items using special simplified
procedures--''.
(e) Effective Date.--The authority to issue solicitations
for purchases of commercial items in excess of the simplified
acquisition threshold pursuant to the special simplified
procedures authorized by section 2304(g)(1) of title 10,
United States Code, section 303(g)(1) of the Federal Property
and Administrative Services Act of 1949, and section 31(a) of
the Office of Federal Procurement Policy Act, as amended by
this section, shall expire three years after the date on
which such amendments take effect pursuant to section
4401(b). Contracts may be awarded pursuant to solicitations
that have been issued before such authority expires,
notwithstanding the expiration of such authority.

SEC. 4203. INAPPLICABILITY OF CERTAIN PROCUREMENT LAWS TO
COMMERCIALLY AVAILABLE OFF-THE-SHELF ITEMS.

(a) Laws Listed in the FAR.--The Office of Federal
Procurement Policy Act (41 U.S.C. 401) et seq.) is amended by
adding at the end the following:

``SEC. 35. COMMERCIALLY AVAILABLE OFF-THE-SHELF ITEM
ACQUISITIONS: LISTS OF INAPPLICABLE LAWS IN
FEDERAL ACQUISITION REGULATION.

``(a) Lists of Inapplicable Provisions of Law.--(1) The
Federal Acquisition Regulation shall include a list of
provisions of law that are inapplicable to contracts for the
procurement of commercially available off-the-shelf items.
``(2) A provision of law that, pursuant to paragraph (3),
is properly included on a list referred to in paragraph (1)
may not be construed as being applicable to contracts
referred to in paragraph (1). Nothing in this section shall
be construed to render inapplicable to such contracts any
provision of law that is not included on such list.
``(3) A provision of law described in subsection (b) shall
be included on the list of inapplicable provisions of law
required by paragraph (1) unless the Administrator for
Federal Procurement Policy makes a written determination that
it would not be in the best interest of the United States to
exempt such contracts from the applicability of that
provision of law. Nothing in this section shall be construed
as modifying or superseding, or as being intended to impair
or restrict authorities or responsibilities under--
``(A) section 15 of the Small Business Act (15 U.S.C. 644);
or
``(B) bid protest procedures developed under the authority
of subchapter V of chapter 35 of title 31, United States
Code; subsections (e) and (f) of section 2305 of title 10,
United States Code; or subsections (h) and (i) of section
303B of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 253b).

[[Page H488]]

``(b) Covered Law.--Except as provided in subsection
(a)(3), the list referred to in subsection (a)(1) shall
include each provision of law that, as determined by the
Administrator, imposes on persons who have been awarded
contracts by the Federal Government for the procurement of
commercially available off-the-shelf items Government-unique
policies, procedures, requirements, or restrictions for the
procurement of property or services, except the following:
``(1) A provision of law that provides for criminal or
civil penalties.
``(2) A provision of law that specifically refers to this
section and provides that, notwithstanding this section, such
provision of law shall be applicable to contracts for the
procurement of commercial off-the-shelf items.
``(c) Definition.--(1) As used in this section, the term
`commercially available off-the-shelf item' means, except as
provided in paragraph (2), an item that--
``(A) is a commercial item (as described in section
4(12)(A));
``(B) is sold in substantial quantities in the commercial
marketplace; and
``(C) is offered to the Government, without modification,
in the same form in which it is sold in the commercial
marketplace.
``(2) The term `commercially available off-the-shelf item'
does not include bulk cargo, as defined in section 3 of the
Shipping Act of 1984 (46 U.S.C. App. 1702), such as
agricultural products and petroleum products.''.
(b) Clerical Amendment.--The table of contents in section
1(b) of such Act is amended by inserting after the item
relating to section 34 the following:
``Sec. 35. Commercially available off-the-shelf item acquisitions:
lists of inapplicable laws in Federal Acquisition
Regulation.''.

SEC. 4204. AMENDMENT OF COMMERCIAL ITEMS DEFINITION.

Section 4(12)(F) of the Office of Federal Procurement
Policy Act (41 U.S.C. 403(12)(F)) is amended by inserting
``or market'' after ``catalog''.

SEC. 4205. INAPPLICABILITY OF COST ACCOUNTING STANDARDS TO
CONTRACTS AND SUBCONTRACTS FOR COMMERCIAL
ITEMS.

Paragraph (2)(B) of section 26(f) of the Office of Federal
Procurement Policy Act (41 U.S.C. 422(f)) is amended--
(1) by striking out clause (i) and inserting in lieu
thereof the following:
``(i) Contracts or subcontracts for the acquisition of
commercial items.''; and
(2) by striking out clause (iii).
TITLE XLIII--ADDITIONAL REFORM PROVISIONS
Subtitle A--Additional Acquisition Reform Provisions

SEC. 4301. ELIMINATION OF CERTAIN CERTIFICATION REQUIREMENTS.

(a) Elimination of Certain Statutory Certification
Requirements.--(1) Section 2410b of title 10, United States
Code, is amended in paragraph (2) by striking out
``certification and''.
(2) Section 1352(b)(2) of title 31, United States Code, is
amended--
(A) by striking out subparagraph (C); and
(B) by inserting ``and'' after the semicolon at the end of
subparagraph (A).
(3) Section 5152 of the Drug-Free Workplace Act of 1988 (41
U.S.C. 701) is amended--
(A) in subsection (a)(1), by striking out ``has certified
to the contracting agency that it will'' and inserting in
lieu thereof ``agrees to'';
(B) in subsection (a)(2), by striking out ``contract
includes a certification by the individual'' and inserting in
lieu thereof ``individual agrees''; and
(C) in subsection (b)(1)--
(i) by striking out subparagraph (A);
(ii) by redesignating subparagraph (B) as subparagraph (A)
and in that subparagraph by striking out ``such certification
by failing to carry out''; and
(iii) by redesignating subparagraph (C) as subparagraph
(B).
(b) Elimination of Certain Regulatory Certification
Requirements.--
(1) Current certification requirements.--(A) Not later than
210 days after the date of the enactment of this Act, the
Administrator for Federal Procurement Policy shall issue for
public comment a proposal to amend the Federal Acquisition
Regulation to remove from the Federal Acquisition Regulation
certification requirements for contractors and offerors that
are not specifically imposed by statute. The Administrator
may omit such a certification requirement from the proposal
only if--
(i) the Federal Acquisition Regulatory Council provides the
Administrator with a written justification for the
requirement and a determination that there is no less
burdensome means for administering and enforcing the
particular regulation that contains the certification
requirement; and
(ii) the Administrator approves in writing the retention of
the certification requirement.
(B)(i) Not later than 210 days after the date of the
enactment of this Act, the head of each executive agency that
has agency procurement regulations containing one or more
certification requirements for contractors and offerors that
are not specifically imposed by statute shall issue for
public comment a proposal to amend the regulations to remove
the certification requirements. The head of the executive
agency may omit such a certification requirement from the
proposal only if--
(I) the senior procurement executive for the executive
agency provides the head of the executive agency with a
written justification for the requirement and a determination
that there is no less burdensome means for administering and
enforcing the particular regulation that contains the
certification requirement; and
(II) the head of the executive agency approves in writing
the retention of such certification requirement.
(ii) For purposes of clause (i), the term ``head of the
executive agency'' with respect to a military department
means the Secretary of Defense.
(2) Future certification requirements.--(A) Section 29 of
the Office of Federal Procurement Policy Act (41 U.S.C. 425)
is amended--
(i) by amending the heading to read as follows:

``SEC. 29. CONTRACT CLAUSES AND CERTIFICATIONS.'';
(ii) by inserting ``(a) Nonstandard Contract Clauses.--''
before ``The Federal Acquisition''; and
(iii) by adding at the end the following new subsection:
``(c) Prohibition on Certification Requirements.--(1) A
requirement for a certification by a contractor or offeror
may not be included in the Federal Acquisition Regulation
unless--
``(A) the certification requirement is specifically imposed
by statute; or
``(B) written justification for such certification
requirement is provided to the Administrator for Federal
Procurement Policy by the Federal Acquisition Regulatory
Council, and the Administrator approves in writing the
inclusion of such certification requirement.
``(2)(A) A requirement for a certification by a contractor
or offeror may not be included in a procurement regulation of
an executive agency unless--
``(i) the certification requirement is specifically imposed
by statute; or
``(ii) written justification for such certification
requirement is provided to the head of the executive agency
by the senior procurement executive of the agency, and the
head of the executive agency approves in writing the
inclusion of such certification requirement.
``(B) For purposes of subparagraph (A), the term `head of
the executive agency' with respect to a military department
means the Secretary of Defense.''.
(B) The item relating to section 29 in the table of
contents for the Office of Federal Procurement Policy Act
(contained in section 1(b)) (41 U.S.C. 401 note) is amended
to read as follows:
``Sec. 29. Contract clauses and certifications.''.

(c) Policy of Congress.--Section 29 of the Office of
Federal Procurement Policy Act (41 U.S.C. 425) is further
amended by adding after subsection (a) the following new
subsection:
``(b) Construction of Certification Requirements.--A
provision of law may not be construed as requiring a
certification by a contractor or offeror in a procurement
made or to be made by the Federal Government unless that
provision of law specifically provides that such a
certification shall be required.''.

SEC. 4302. AUTHORITIES CONDITIONED ON FACNET CAPABILITY.

(a) Commencement and Expiration of Authority To Conduct
Certain Tests of Procurement Procedures.--Subsection (j) of
section 5061 of the Federal Acquisition Streamlining Act of
1994 (41 U.S.C. 413 note; 108 Stat. 3355) is amended to read
as follows:
``(j) Commencement and Expiration of Authority.--The
authority to conduct a test under subsection (a) in an agency
and to award contracts under such a test shall take effect on
January 1, 1997, and shall expire on January 1, 2001. A
contract entered into before such authority expires in
an agency pursuant to a test shall remain in effect, in
accordance with the terms of the contract, the
notwithstanding of expiration the authority to conduct the
test under this section.''.
(b) Use of Simplified Acquisition Procedures.--Subsection
(e) of section 31 of the Office of Federal Procurement Policy
Act (41 U.S.C. 427) is amended--
(1) by striking out ``Acquisition Procedures.--'' and all
that follows through ``(B) The simplified acquisition'' in
paragraph (2)(B) and inserting in lieu thereof ``Acquisition
Procedures.--The simplified acquisition''; and
(2) by striking out ``pursuant to this section'' in the
remaining text and inserting in lieu thereof ``pursuant to
section 2304(g)(1)(A) of title 10, United States Code,
section 303(g)(1)(A) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(A)),
and subsection (a)(1) of this section''.

SEC. 4303. INTERNATIONAL COMPETITIVENESS.

(a) Additional Authority to Waive Research, Development,
and Production Costs.--Subject to subsection (b), section
21(e)(2) of the Arms Export Control Act (22 U.S.C.
2761(e)(2)) is amended--
(1) by inserting ``(A)'' after ``(2)''; and
(2) by adding at the end the following new subparagraphs:
``(B) The President may waive the charge or charges which
would otherwise be considered appropriate under paragraph
(1)(B) for a particular sale if the President determines
that--
``(i) imposition of the charge or charges likely would
result in the loss of the sale; or

[[Page H489]]

``(ii) in the case of a sale of major defense equipment
that is also being procured for the use of the Armed Forces,
the waiver of the charge or charges would (through a
resulting increase in the total quantity of the equipment
purchased from the source of the equipment that causes a
reduction in the unit cost of the equipment) result in a
savings to the United States on the cost of the equipment
procured for the use of the Armed Forces that substantially
offsets the revenue foregone by reason of the waiver of the
charge or charges.
``(C) The President may waive, for particular sales of
major defense equipment, any increase in a charge or charges
previously considered appropriate under paragraph (1)(B) if
the increase results from a correction of an estimate
(reasonable when made) of the production quantity base that
was used for calculating the charge or charges for purposes
of such paragraph.''.
(b) Conditions.--Subsection (a) shall be effective only
if--
(1) the President, in the budget of the President for
fiscal year 1997, proposes legislation that if enacted would
be qualifying offsetting legislation; and
(2) there is enacted qualifying offsetting legislation.
(c) Effective Date.--If the conditions in subsection (b)
are met, then the amendments made by subsection (a) shall
take effect on the date of the enactment of qualifying
offsetting legislation.
(d) Definitions.--For purposes of this section:
(1) The term ``qualifying offsetting legislation'' means
legislation that includes provisions that--
(A) offset fully the estimated revenues lost as a result of
the amendments made by subsection (a) for each of the fiscal
years 1997 through 2005;
(B) expressly state that they are enacted for the purpose
of the offset described in subparagraph (A); and
(C) are included in full on the PayGo scorecard.
(2) The term ``PayGo scorecard'' means the estimates that
are made by the Director of the Congressional Budget Office
and the Director of the Office of Management and Budget under
section 252(d) of the Balanced Budget and Emergency Deficit
Control Act of 1985.

SEC. 4304. PROCUREMENT INTEGRITY.

(a) Amendment of Procurement Integrity Provision.--Section
27 of the Office of Federal Procurement Policy Act (41 U.S.C.
423) is amended to read as follows:

``SEC. 27. RESTRICTIONS ON DISCLOSING AND OBTAINING
CONTRACTOR BID OR PROPOSAL INFORMATION OR
SOURCE SELECTION INFORMATION.

``(a) Prohibition on Disclosing Procurement Information.--
(1) A person described in paragraph (2) shall not, other than
as provided by law, knowingly disclose contractor bid or
proposal information or source selection information before
the award of a Federal agency procurement contract to which
the information relates.
``(2) Paragraph (1) applies to any person who--
``(A) is a present or former official of the United States,
or a person who is acting or has acted for or on behalf of,
or who is advising or has advised the United States with
respect to, a Federal agency procurement; and
``(B) by virtue of that office, employment, or relationship
has or had access to contractor bid or proposal information
or source selection information.
``(b) Prohibition on Obtaining Procurement Information.--A
person shall not, other than as provided by law, knowingly
obtain contractor bid or proposal information or source
selection information before the award of a Federal agency
procurement contract to which the information relates.
``(c) Actions Required of Procurement Officers When
Contacted by Offerors Regarding Non-Federal Employment.--(1)
If an agency official who is participating personally and
substantially in a Federal agency procurement for a contract
in excess of the simplified acquisition threshold contacts or
is contacted by a person who is a bidder or offeror in that
Federal agency procurement regarding possible non-Federal
employment for that official, the official shall--
``(A) promptly report the contact in writing to the
official's supervisor and to the designated agency ethics
official (or designee) of the agency in which the official is
employed; and
``(B)(i) reject the possibility of non-Federal employment;
or
``(ii) disqualify himself or herself from further personal
and substantial participation in that Federal agency
procurement until such time as the agency has authorized the
official to resume participation in such procurement, in
accordance with the requirements of section 208 of title 18,
United States Code, and applicable agency regulations on the
grounds that--
``(I) the person is no longer a bidder or offeror in that
Federal agency procurement; or
``(II) all discussions with the bidder or offeror regarding
possible non-Federal employment have terminated without an
agreement or arrangement for employment.
``(2) Each report required by this subsection shall be
retained by the agency for not less than two years following
the submission of the report. All such reports shall be made
available to the public upon request, except that any part of
a report that is exempt from the disclosure requirements of
section 552 of title 5, United States Code, under subsection
(b)(1) of such section may be withheld from disclosure to the
public.
``(3) An official who knowingly fails to comply with the
requirements of this subsection shall be subject to the
penalties and administrative actions set forth in subsection
(e).
``(4) A bidder or offeror who engages in employment
discussions with an official who is subject to the
restrictions of this subsection, knowing that the official
has not complied with subparagraph (A) or (B) of paragraph
(1), shall be subject to the penalties and administrative
actions set forth in subsection (e).
``(d) Prohibition on Former Official's Acceptance of
Compensation From Contractor.--(1) A former official of a
Federal agency may not accept compensation from a contractor
as an employee, officer, director, or consultant of the
contractor within a period of one year after such former
official--
``(A) served, at the time of selection of the contractor or
the award of a contract to that contractor, as the procuring
contracting officer, the source selection authority, a member
of the source selection evaluation board, or the chief of a
financial or technical evaluation team in a procurement in
which that contractor was selected for award of a contract in
excess of $10,000,000;
``(B) served as the program manager, deputy program
manager, or administrative contracting officer for a contract
in excess of $10,000,000 awarded to that contractor; or
``(C) personally made for the Federal agency--
``(i) a decision to award a contract, subcontract,
modification of a contract or subcontract, or a task order or
delivery order in excess of $10,000,000 to that contractor;
``(ii) a decision to establish overhead or other rates
applicable to a contract or contracts for that contractor
that are valued in excess of $10,000,000;
``(iii) a decision to approve issuance of a contract
payment or payments in excess of $10,000,000 to that
contractor; or
``(iv) a decision to pay or settle a claim in excess of
$10,000,000 with that contractor.
``(2) Nothing in paragraph (1) may be construed to prohibit
a former official of a Federal agency from accepting
compensation from any division or affiliate of a contractor
that does not produce the same or similar products or
services as the entity of the contractor that is responsible
for the contract referred to in subparagraph (A), (B), or (C)
of such paragraph.
``(3) A former official who knowingly accepts compensation
in violation of this subsection shall be subject to penalties
and administrative actions as set forth in subsection (e).
``(4) A contractor who provides compensation to a former
official knowing that such compensation is accepted by the
former official in violation of this subsection shall be
subject to penalties and administrative actions as set forth
in subsection (e).
``(5) Regulations implementing this subsection shall
include procedures for an official or former official of a
Federal agency to request advice from the appropriate
designated agency ethics official regarding whether the
official or former official is or would be precluded by this
subsection from accepting compensation from a particular
contractor.
``(e) Penalties and Administrative Actions.--
``(1) Criminal penalties.--Whoever engages in conduct
constituting a violation of subsection (a) or (b) for the
purpose of either--
``(A) exchanging the information covered by such subsection
for anything of value, or
``(B) obtaining or giving anyone a competitive advantage in
the award of a Federal agency procurement contract,
shall be imprisoned for not more than 5 years or fined as
provided under title 18, United States Code, or both.
``(2) Civil penalties.--The Attorney General may bring a
civil action in an appropriate United States district court
against any person who engages in conduct constituting a
violation of subsection (a), (b), (c), or (d). Upon proof of
such conduct by a preponderance of the evidence, the person
is subject to a civil penalty. An individual who engages in
such conduct is subject to a civil penalty of not more than
$50,000 for each violation plus twice the amount of
compensation which the individual received or offered for the
prohibited conduct. An organization that engages in such
conduct is subject to a civil penalty of not more than
$500,000 for each violation plus twice the amount of
compensation which the organization received or offered for
the prohibited conduct.
``(3) Administrative actions.--(A) If a Federal agency
receives information that a contractor or a person has
engaged in conduct constituting a violation of subsection
(a), (b), (c), or (d), the Federal agency shall consider
taking one or more of the following actions, as appropriate:
``(i) Cancellation of the Federal agency procurement, if a
contract has not yet been awarded.
``(ii) Rescission of a contract with respect to which--
``(I) the contractor or someone acting for the contractor
has been convicted for an offense punishable under paragraph
(1), or
``(II) the head of the agency that awarded the contract has
determined, based upon a preponderance of the evidence, that
the contractor or someone acting for the contractor has
engaged in conduct constituting such an offense.

[[Page H490]]

``(iii) Initiation of suspension or debarment proceedings
for the protection of the Government in accordance with
procedures in the Federal Acquisition Regulation.
``(iv) Initiation of adverse personnel action, pursuant to
the procedures in chapter 75 of title 5, United States Code,
or other applicable law or regulation.
``(B) If a Federal agency rescinds a contract pursuant to
subparagraph (A)(ii), the United States is entitled to
recover, in addition to any penalty prescribed by law, the
amount expended under the contract.
``(C) For purposes of any suspension or debarment
proceedings initiated pursuant to subparagraph (A)(iii),
engaging in conduct constituting an offense under subsection
(a), (b), (c), or (d) affects the present responsibility of a
Government contractor or subcontractor.
``(f) Definitions.--As used in this section:
``(1) The term `contractor bid or proposal information'
means any of the following information submitted to a Federal
agency as part of or in connection with a bid or proposal to
enter into a Federal agency procurement contract, if that
information has not been previously made available to the
public or disclosed publicly:
``(A) Cost or pricing data (as defined by section 2306a(h)
of title 10, United States Code, with respect to procurements
subject to that section, and section 304A(h) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
254b(h)), with respect to procurements subject to that
section).
``(B) Indirect costs and direct labor rates.
``(C) Proprietary information about manufacturing
processes, operations, or techniques marked by the contractor
in accordance with applicable law or regulation.
``(D) Information marked by the contractor as `contractor
bid or proposal information', in accordance with applicable
law or regulation.
``(2) The term `source selection information' means any of
the following information prepared for use by a Federal
agency for the purpose of evaluating a bid or proposal to
enter into a Federal agency procurement contract, if that
information has not been previously made available to the
public or disclosed publicly:
``(A) Bid prices submitted in response to a Federal agency
solicitation for sealed bids, or lists of those bid prices
before public bid opening.
``(B) Proposed costs or prices submitted in response to a
Federal agency solicitation, or lists of those proposed costs
or prices.
``(C) Source selection plans.
``(D) Technical evaluation plans.
``(E) Technical evaluations of proposals.
``(F) Cost or price evaluations of proposals.
``(G) Competitive range determinations that identify
proposals that have a reasonable chance of being selected for
award of a contract.
``(H) Rankings of bids, proposals, or competitors.
``(I) The reports and evaluations of source selection
panels, boards, or advisory councils.
``(J) Other information marked as `source selection
information' based on a case-by-case determination by the
head of the agency, his designee, or the contracting officer
that its disclosure would jeopardize the integrity or
successful completion of the Federal agency procurement to
which the information relates.
``(3) The term `Federal agency' has the meaning provided
such term in section 3 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 472).
``(4) The term `Federal agency procurement' means the
acquisition (by using competitive procedures and awarding a
contract) of goods or services (including construction) from
non-Federal sources by a Federal agency using appropriated
funds.
``(5) The term `contracting officer' means a person who, by
appointment in accordance with applicable regulations, has
the authority to enter into a Federal agency procurement
contract on behalf of the Government and to make
determinations and findings with respect to such a contract.
``(6) The term `protest' means a written objection by an
interested party to the award or proposed award of a Federal
agency procurement contract, pursuant to subchapter V of
chapter 35 of title 31, United States Code.
``(7) The term `official' means the following:
``(A) An officer, as defined in section 2104 of title 5,
United States Code.
``(B) An employee, as defined in section 2105 of title 5,
United States Code.
``(C) A member of the uniformed services, as defined in
section 2101(3) of title 5, United States Code.
``(g) Limitation on Protests.--No person may file a protest
against the award or proposed award of a Federal agency
procurement contract alleging a violation of subsection (a),
(b), (c), or (d), nor may the Comptroller General of the
United States consider such an allegation in deciding a
protest, unless that person reported to the Federal agency
responsible for the procurement, no later than 14 days after
the person first discovered the possible violation, the
information that the person believed constitutes evidence of
the offense.
``(h) Savings Provisions.--This section does not--
``(1) restrict the disclosure of information to, or its
receipt by, any person or class of persons authorized, in
accordance with applicable agency regulations or procedures,
to receive that information;
``(2) restrict a contractor from disclosing its own bid or
proposal information or the recipient from receiving that
information;
``(3) restrict the disclosure or receipt of information
relating to a Federal agency procurement after it has been
canceled by the Federal agency before contract award unless
the Federal agency plans to resume the procurement;
``(4) prohibit individual meetings between a Federal agency
official and an offeror or potential offeror for, or a
recipient of, a contract or subcontract under a Federal
agency procurement, provided that unauthorized disclosure or
receipt of contractor bid or proposal information or source
selection information does not occur;
``(5) authorize the withholding of information from, nor
restrict its receipt by, Congress, a committee or
subcommittee of Congress, the Comptroller General, a Federal
agency, or an inspector general of a Federal agency;
``(6) authorize the withholding of information from, nor
restrict its receipt by, the Comptroller General of the
United States in the course of a protest against the award or
proposed award of a Federal agency procurement contract; or
``(7) limit the applicability of any requirements,
sanctions, contract penalties, and remedies established under
any other law or regulation.''.
(b) Repeals.--The following provisions of law are repealed:
(1) Sections 2397, 2397a, 2397b, and 2397c of title 10,
United States Code.
(2) Section 33 of the Federal Energy Administration Act of
1974 (15 U.S.C. 789).
(3) Section 281 of title 18, United States Code.
(4) Subsection (c) of section 32 of the Office of Federal
Procurement Policy Act (41 U.S.C. 428).
(5) The first section 19 of the Federal Nonnuclear Energy
Research and Development Act of 1974 (42 U.S.C. 5918).
(6) Part A of title VI of the Department of Energy
Organization Act and its catchline (42 U.S.C. 7211, 7212, and
7218).
(7) Section 308 of the Energy Research and Development
Administration Appropriation Authorization Act for Fiscal
Year 1977 (42 U.S.C. 5816a).
(8) Section 522 of the Energy Policy and Conservation Act
(42 U.S.C. 6392).
(c) Clerical Amendments.--
(1) The table of sections at the beginning of chapter 141
of title 10, United States Code, is amended by striking out
the items relating to sections 2397, 2397a, 2397b, and 2397c.
(2) The table of sections at the beginning of chapter 15 of
title 18, United States Code, is amended by striking out the
item relating to section 281.
(3) Section 32 of the Office of Federal Procurement Policy
Act (41 U.S.C. 428) is amended by redesignating subsections
(d), (e), (f), and (g) as subsections (c), (d), (e), and (f),
respectively.
(4) The table of contents for the Department of Energy
Organization Act is amended by striking out the items
relating to part A of title VI including sections 601 through
603.
(5) The table of contents for the Energy Policy and
Conservation Act is amended by striking out the item relating
to section 522.

SEC. 4305. FURTHER ACQUISITION STREAMLINING PROVISIONS.

(a) Purpose of Office of Federal Procurement Policy.--
(1) Revised statement of purpose.--Section 5(a) of the
Office of Federal Procurement Policy Act (41 U.S.C. 404) is
amended to read as follows:
``(a) There is in the Office of Management and Budget an
Office of Federal Procurement Policy (hereinafter referred to
as the `Office') to provide overall direction of Government-
wide procurement policies, regulations, procedures, and forms
for executive agencies and to promote economy, efficiency,
and effectiveness in the procurement of property and services
by the executive branch of the Federal Government.''.
(2) Repeal of findings, policies, and purposes.--Sections 2
and 3 of such Act (41 U.S.C. 401 and 402) are repealed.
(b) Repeal of Report Requirement.--Section 8 of the Office
of Federal Procurement Policy Act (41 U.S.C. 407) is
repealed.
(c) Obsolete Provisions.--
(1) Relationship to former regulations.--Section 10 of the
Office of Federal Procurement Policy Act (41 U.S.C. 409) is
repealed.
(2) Authorization of appropriations.--Section 11 of such
Act (41 U.S.C. 410) is amended to read as follows:

``SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

``There is authorized to be appropriated for the Office of
Federal Procurement Policy each fiscal year such sums as may
be necessary for carrying out the responsibilities of that
office for such fiscal year.''.
(d) Clerical Amendments.--The table of contents for the
Office of Federal Procurement Policy Act (contained in
section 1(b)) is amended by striking out the items relating
to sections 2, 3, 8, and 10.

SEC. 4306. VALUE ENGINEERING FOR FEDERAL AGENCIES.

(a) Use of Value Engineering.--The Office of Federal
Procurement Policy Act (41 U.S.C. 401 et seq.), as amended by
section 4203, is further amended by adding at the end the
following new section:

[[Page H491]]

``SEC. 36. VALUE ENGINEERING.

``(a) In General.--Each executive agency shall establish
and maintain cost-effective value engineering procedures and
processes.
``(b) Definition.--As used in this section, the term `value
engineering' means an analysis of the functions of a program,
project, system, product, item of equipment, building,
facility, service, or supply of an executive agency,
performed by qualified agency or contractor personnel,
directed at improving performance, reliability, quality,
safety, and life cycle costs.''.
(b) Clerical Amendment.--The table of contents for such
Act, contained in section 1(b), is amended by adding at the
end the following new item:

``Sec. 36. Value engineering.''.

SEC. 4307. ACQUISITION WORKFORCE.

(a) Acquisition Workforce.--(1) The Office of Federal
Procurement Policy Act (41 U.S.C. 401 et seq.), as amended by
section 4306, is further amended by adding at the end the
following new section:

``SEC. 37. ACQUISITION WORKFORCE.

``(a) Applicability.--This section does not apply to an
executive agency that is subject to chapter 87 of title 10,
United States Code.
``(b) Management Policies.--
``(1) Policies and procedures.--The head of each executive
agency, after consultation with the Administrator for Federal
Procurement Policy, shall establish policies and procedures
for the effective management (including accession, education,
training, career development, and performance incentives) of
the acquisition workforce of the agency. The development of
acquisition workforce policies under this section shall be
carried out consistent with the merit system principles set
forth in section 2301(b) of title 5, United States Code.
``(2) Uniform implementation.--The head of each executive
agency shall ensure that, to the maximum extent practicable,
acquisition workforce policies and procedures established are
uniform in their implementation throughout the agency.
``(3) Government-wide policies and evaluation.--The
Administrator shall issue policies to promote uniform
implementation of this section by executive agencies, with
due regard for differences in program requirements among
agencies that may be appropriate and warranted in view of the
agency mission. The Administrator shall coordinate with the
Deputy Director for Management of the Office of Management
and Budget to ensure that such policies are consistent with
the policies and procedures established and enhanced system
of incentives provided pursuant to section 5051(c) of the
Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 263
note). The Administrator shall evaluate the implementation of
the provisions of this section by executive agencies.
``(c) Senior Procurement Executive Authorities and
Responsibilities.--Subject to the authority, direction, and
control of the head of an executive agency, the senior
procurement executive of the agency shall carry out all
powers, functions, and duties of the head of the agency with
respect to implementation of this section. The senior
procurement executive shall ensure that the policies of the
head of the executive agency established in accordance with
this section are implemented throughout the agency.
``(d) Management Information Systems.--The Administrator
shall ensure that the heads of executive agencies collect and
maintain standardized information on the acquisition
workforce related to implementation of this section. To the
maximum extent practicable, such data requirements shall
conform to standards established by the Office of Personnel
Management for the Central Personnel Data File.
``(e) Applicability to Acquisition Workforce.--The programs
established by this section shall apply to the acquisition
workforce of each executive agency. For purposes of this
section, the acquisition workforce of an agency consists of
all employees serving in acquisition positions listed in
subsection (g)(1)(A).
``(f) Career Development.--
``(1) Career paths.--The head of each executive agency
shall ensure that appropriate career paths for personnel who
desire to pursue careers in acquisition are identified in
terms of the education, training, experience, and assignments
necessary for career progression to the most senior
acquisition positions. The head of each executive agency
shall make information available on such career paths.
``(2) Critical duties and tasks.--For each career path, the
head of each executive agency shall identify the critical
acquisition-related duties and tasks in which, at minimum,
employees of the agency in the career path shall be competent
to perform at full performance grade levels. For this
purpose, the head of the executive agency shall provide
appropriate coverage of the critical duties and tasks
identified by the Director of the Federal Acquisition
Institute.
``(3) Mandatory training and education.--For each career
path, the head of each executive agency shall establish
requirements for the completion of course work and related
on-the-job training in the critical acquisition-related
duties and tasks of the career path. The head of each
executive agency shall also encourage employees to maintain
the currency of their acquisition knowledge and generally
enhance their knowledge of related acquisition management
disciplines through academic programs and other self-
developmental activities.
``(4) Performance incentives.--The head of each executive
agency shall provide for an enhanced system of incentives for
the encouragement of excellence in the acquisition workforce
which rewards performance of employees that contribute to
achieving the agency's performance goals. The system of
incentives shall include provisions that--
``(A) relate pay to performance (including the extent to
which the performance of personnel in such workforce
contributes to achieving the cost goals, schedule goals, and
performance goals established for acquisition programs
pursuant to section 313(b) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 263(b))); and
``(B) provide for consideration, in personnel evaluations
and promotion decisions, of the extent to which the
performance of personnel in such workforce contributes to
achieving such cost goals, schedule goals, and performance
goals.
``(g) Qualification Requirements.--
``(1) In general.--(A) Subject to paragraph (2), the
Administrator shall establish qualification requirements,
including education requirements, for the following
positions:
``(i) Entry-level positions in the General Schedule
Contracting series (GS-1102).
``(ii) Senior positions in the General Schedule Contracting
series (GS-1102).
``(iii) All positions in the General Schedule Purchasing
series (GS-1105).
``(iv) Positions in other General Schedule series in which
significant acquisition-related functions are performed.
``(B) Subject to paragraph (2), the Administrator shall
prescribe the manner and extent to which such qualification
requirements shall apply to any person serving in a position
described in subparagraph (A) at the time such requirements
are established.
``(2) Relationship to requirements applicable to defense
acquisition workforce.--The Administrator shall establish
qualification requirements and make prescriptions under
paragraph (1) that are comparable to those established for
the same or equivalent positions pursuant to chapter 87 of
title 10, United States Code, with appropriate modifications.
``(3) Approval of requirements.--The Administrator shall
submit any requirement established or prescription made under
paragraph (1) to the Director of the Office of Personnel
Management for approval. If the Director does not disapprove
a requirement or prescription within 30 days after the date
on which the Director receives it, the requirement or
prescription is deemed to be approved by the Director.
``(h) Education and Training.--
``(1) Funding levels.--(A) The head of an executive agency
shall set forth separately the funding levels requested for
education and training of the acquisition workforce in the
budget justification documents submitted in support of the
President's budget submitted to Congress under section 1105
of title 31, United States Code.
``(B) Funds appropriated for education and training under
this section may not be obligated for any other purpose.
``(2) Tuition assistance.--The head of an executive agency
may provide tuition reimbursement in education (including a
full-time course of study leading to a degree) in accordance
with section 4107 of title 5, United States Code, for
personnel serving in acquisition positions in the agency.''.
(2) The table of contents for such Act, contained in
section 1(b), is amended by adding at the end the following
new item:

``Sec. 37. Acquisition workforce.''.

(b) Additional Amendments.--Section 6(d) of the Office of
Federal Procurement Policy Act (41 U.S.C. 405), is amended--
(1) by redesignating paragraphs (6), (7), (8), (9), (10),
(11), and (12) (as transferred by section 4321(h)(1)) as
paragraphs (7), (8), (9), (10), (11), (12), and (13),
respectively;
(2) in paragraph (5)--
(A) in subparagraph (A), by striking out ``Government-wide
career management programs for a professional procurement
work force'' and inserting in lieu thereof ``the development
of a professional acquisition workforce Government-wide'';
and
(B) in subparagraph (B)--
(i) by striking out ``procurement by the'' and inserting in
lieu thereof ``acquisition by the'';
(ii) by striking out ``and'' at the end of the
subparagraph; and
(iii) by striking out subparagraph (C) and inserting in
lieu thereof the following:
``(C) collect data and analyze acquisition workforce data
from the Office of Personnel Management, the heads of
executive agencies, and, through periodic surveys, from
individual employees;
``(D) periodically analyze acquisition career fields to
identify critical competencies, duties, tasks, and related
academic prerequisites, skills, and knowledge;
``(E) coordinate and assist agencies in identifying and
recruiting highly qualified candidates for acquisition
fields;
``(F) develop instructional materials for acquisition
personnel in coordination with private and public acquisition
colleges and training facilities;
``(G) evaluate the effectiveness of training and career
development programs for acquisition personnel;
``(H) promote the establishment and utilization of academic
programs by colleges and universities in acquisition fields;
``(I) facilitate, to the extent requested by agencies,
interagency intern and training programs; and

[[Page H492]]

``(J) perform other career management or research functions
as directed by the Administrator.''; and
(3) by inserting before paragraph (7) (as so redesignated)
the following new paragraph (6):
``(6) administering the provisions of section 37;''.

SEC. 4308. DEMONSTRATION PROJECT RELATING TO CERTAIN
PERSONNEL MANAGEMENT POLICIES AND PROCEDURES.

(a) Commencement.--The Secretary of Defense is encouraged
to take such steps as may be necessary to provide for the
commencement of a demonstration project, the purpose of which
would be to determine the feasibility or desirability of one
or more proposals for improving the personnel management
policies or procedures that apply with respect to the
acquisition workforce of the Department of Defense.
(b) Terms and Conditions.--
(1) In general.--Except as otherwise provided in this
subsection, any demonstration project described in subsection
(a) shall be subject to section 4703 of title 5, United
States Code, and all other provisions of such title that
apply with respect to any demonstration project under such
section.
(2) Exceptions.--Subject to paragraph (3), in applying
section 4703 of title 5, United States Code, with respect to
a demonstration project described in subsection (a)--
(A) ``180 days'' in subsection (b)(4) of such section shall
be deemed to read ``120 days'';
(B) ``90 days'' in subsection (b)(6) of such section shall
be deemed to read ``30 days''; and
(C) subsection (d)(1)(A) of such section shall be
disregarded.
(3) Condition.--Paragraph (2) shall not apply with respect
to a demonstration project unless it--
(A) involves only the acquisition workforce of the
Department of Defense (or any part thereof); and
(B) commences during the 3-year period beginning on the
date of the enactment of this Act.
(c) Definition.--For purposes of this section, the term
``acquisition workforce'' refers to the persons serving in
acquisition positions within the Department of Defense, as
designated pursuant to section 1721(a) of title 10, United
States Code.

SEC. 4309. COOPERATIVE PURCHASING.

(a) Delay in Opening Certain Federal Supply Schedules To
Use by State, Local, and Indian Tribal Governments.--The
Administrator of General Services may not use the authority
of section 201(b)(2) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 481(b)(2)) to
provide for the use of Federal supply schedules of the
General Services Administration until after the later of--
(1) the date on which the 18-month period beginning on the
date of the enactment of this Act expires; or
(2) the date on which all of the following conditions are
met:
(A) The Administrator has considered the report of the
Comptroller General required by subsection (b).
(B) The Administrator has submitted comments on such report
to Congress as required by subsection (c).
(C) A period of 30 days after the date of submission of
such comments to Congress has expired.
(b) Report.--Not later than one year after the date of the
enactment of this Act, the Comptroller General shall submit
to the Administrator of General Services and to Congress a
report on the implementation of section 201(b) of the Federal
Property and Administrative Services Act of 1949. The report
shall include the following:
(1) An assessment of the effect on industry, including
small businesses and local dealers, of providing for the use
of Federal supply schedules by the entities described in
section 201(b)(2)(A) of the Federal Property and
Administrative Services Act of 1949.
(2) An assessment of the effect on such entities of
providing for the use of Federal supply schedules by them.
(c) Comments on Report by Administrator.--Not later than 30
days after receiving the report of the Comptroller General
required by subsection (b), the Administrator of General
Services shall submit to Congress comments on the report,
including the Administrator's comments on whether the
Administrator plans to provide any Federal supply schedule
for the use of any entity described in section 201(b)(2)(A)
of the Federal Property and Administrative Services Act of
1949.
(d) Calculation of 30-Day Period.--For purposes of
subsection (a)(2)(C), the calculation of the 30-day period
shall exclude Saturdays, Sundays, and holidays, and any day
on which neither House of Congress is in session because of
an adjournment sine die, a recess of more than 3 days, or an
adjournment of more than 3 days.

SEC. 4310. PROCUREMENT NOTICE TECHNICAL AMENDMENT.

Section 18(c)(1)(E) of the Office of Federal Procurement
Policy Act (41 U.S.C. 416(c)(1)(E)) is amended by inserting
after ``requirements contract'' the following: ``, a task
order contract, or a delivery order contract''.

SEC. 4311. MICRO-PURCHASES WITHOUT COMPETITIVE QUOTATIONS.

Section 32(c) of the Office of Federal Procurement Policy
Act (41 U.S.C. 428), as redesignated by section 4304(c)(3),
is amended by striking out ``the contracting officer'' and
inserting in lieu thereof ``an employee of an executive
agency or a member of the Armed Forces of the United States
authorized to do so''.
Subtitle B--Technical Amendments

SEC. 4321. AMENDMENTS RELATED TO FEDERAL ACQUISITION
STREAMLINING ACT OF 1994.

(a) Public Law 103-355.--Effective as of October 13, 1994,
and as if included therein as enacted, the Federal
Acquisition Streamlining Act of 1994 (Public Law 103-355; 108
Stat. 3243 et seq.) is amended as follows:
(1) Section 1073 (108 Stat. 3271) is amended by striking
out ``section 303I'' and inserting in lieu thereof ``section
303K''.
(2) Section 1202(a) (108 Stat. 3274) is amended by striking
out the closing quotation marks and second period at the end
of paragraph (2)(B) of the subsection inserted by the
amendment made by that section.
(3) Section 1251(b) (108 Stat. 3284) is amended by striking
out ``Office of Federal Procurement Policy Act'' and
inserting in lieu thereof ``Federal Property and
Administrative Services Act of 1949''.
(4) Section 2051(e) (108 Stat. 3304) is amended by striking
out the closing quotation marks and second period at the end
of subsection (f)(3) in the matter inserted by the amendment
made by that section.
(5) Section 2101(a)(6)(B)(ii) (108 Stat. 3308) is amended
by replacing ``regulation'' with ``regulations'' in the first
quoted matter.
(6) Section 2351(a) (108 Stat. 3322) is amended by
inserting ``(1)'' before ``Section 6''.
(7) The heading of section 2352(b) (108 Stat. 3322) is
amended by striking out ``Procedures to Small Business
Government Contractors.--'' and inserting in lieu thereof
``Procedures.--''.
(8) Section 3022 (108 Stat. 3333) is amended by striking
out ``each place'' and all that follows through the end of
the section and inserting in lieu thereof ``in paragraph (1)
and `, rent,' after `sell' in paragraph (2).''.
(9) Section 5092(b) (108 Stat. 3362) is amended by
inserting ``of paragraph (2)'' after ``second sentence''.
(10) Section 6005(a) (108 Stat. 3364) is amended by
striking out the closing quotation marks and second period at
the end of subsection (e)(2) of the matter inserted by the
amendment made by that section.
(11) Section 10005(f)(4) (108 Stat. 3409) is amended in the
second matter in quotation marks by striking out `` `Sec. 5.
This Act'' and inserting in lieu thereof `` `Sec. 7. This
title''.
(b) Title 10, United States Code.--Title 10, United States
Code, is amended as follows:
(1) Section 2220(b) is amended by striking out ``the date
of the enactment of the Federal Acquisition Streamlining Act
of 1994'' and inserting in lieu thereof ``October 13, 1994''.
(2)(A) The section 2247 added by section 7202(a)(1) of
Public Law 103-355 (108 Stat. 3379) is redesignated as
section 2249.
(B) The item relating to that section in the table of
sections at the beginning of subchapter I of chapter 134 is
revised to conform to the redesignation made by subparagraph
(A).
(3) Section 2302(3)(K) is amended by adding a period at the
end.
(4) Section 2304(f)(2)(D) is amended by striking out ``the
Act of June 25, 1938 (41 U.S.C. 46 et seq.), popularly
referred to as the Wagner-O'Day Act,'' and inserting in lieu
thereof ``the Javits-Wagner-O'Day Act (41 U.S.C. 46 et
seq.),''.
(5) Section 2304(h) is amended by striking out paragraph
(1) and inserting in lieu thereof the following:
``(1) The Walsh-Healey Act (41 U.S.C. 35 et seq.).''.
(6)(A) The section 2304a added by section 848(a)(1) of
Public Law 103-160 (107 Stat. 1724) is redesignated as
section 2304e.
(B) The item relating to that section in the table of
sections at the beginning of chapter 137 is revised to
conform to the redesignation made by subparagraph (A).
(7) Section 2306a is amended--
(A) in subsection (d)(2)(A)(ii), by inserting ``to'' after
``The information referred'';
(B) in subsection (e)(4)(B)(ii), by striking out the second
comma after ``parties''; and
(C) in subsection (i)(3), by inserting ``(41 U.S.C.
403(12))'' before the period at the end.
(8) Section 2323 is amended--
(A) in subsection (a)(1)(C), by inserting a closing
parenthesis after ``1135d-5(3))'' and after ``1059c(b)(1))'';
(B) in subsection (a)(3), by striking out ``(issued under''
and all that follows through ``421(c))'';
(C) in subsection (b), by inserting ``(1)'' after
``Amount.--''; and
(D) in subsection (i)(3), by adding at the end a
subparagraph (D) identical to the subparagraph (D) set forth
in the amendment made by section 811(e) of Public Law 103-160
(107 Stat. 1702).
(9) Section 2324 is amended--
(A) in subsection (e)(2)(C)--
(i) by striking out ``awarding the contract'' at the end of
the first sentence; and
(ii) by striking out ``title III'' and all that follows
through ``Act)'' and inserting in lieu thereof ``the Buy
American Act (41 U.S.C. 10b-1)''; and
(B) in subsection (h)(2), by inserting ``the head of the
agency or'' after ``in the case of any contract if''.
(10) Section 2350b is amended--
(A) in subsection (c)(1)--

[[Page H493]]

(i) by striking out ``specifically--'' and inserting in
lieu thereof ``specifically prescribes--''; and
(ii) by striking out ``prescribe'' in each of subparagraphs
(A), (B), (C), and (D); and
(B) in subsection (d)(1), by striking out ``subcontract to
be'' and inserting in lieu thereof ``subcontract be''.
(11) Section 2372(i)(1) is amended by striking out
``section 2324(m)'' and inserting in lieu thereof ``section
2324(l)''.
(12) Section 2384(b) is amended--
(A) in paragraph (2)--
(i) by striking ``items, as'' and inserting in lieu thereof
``items (as''; and
(ii) by inserting a closing parenthesis after ``403(12))'';
and
(B) in paragraph (3), by inserting a closing parenthesis
after ``403(11))''.
(13) Section 2400(a)(5) is amended by striking out ``the
preceding sentence'' and inserting in lieu thereof ``this
paragraph''.
(14) Section 2405 is amended--
(A) in paragraphs (1) and (2) of subsection (a), by
striking out ``the date of the enactment of the Federal
Acquisition Streamlining Act of 1994'' and inserting in lieu
thereof ``October 13, 1994''; and
(B) in subsection (c)(3)--
(i) by striking out ``the later of--'' and all that follows
through ``(B)''; and
(ii) by redesignating clauses (i), (ii), and (iii) as
subparagraphs (A), (B), and (C), respectively, and realigning
those subparagraphs accordingly.
(15) Section 2410d(b) is amended by striking out paragraph
(3).
(16) Section 2410g(d)(1) is amended by inserting before the
period at the end the following: ``(as defined in section
4(12) of the Office of Federal Procurement Policy Act (41
U.S.C. 403(12)))''.
(17) Section 2424(c) is amended--
(A) by inserting ``Exception.--'' after ``(c)''; and
(B) by striking out ``drink'' the first and third places it
appears in the second sentence and inserting in lieu thereof
``beverage''.
(18) Section 2431 is amended--
(A) in subsection (b)--
(i) by striking out ``Any report'' in the first sentence
and inserting in lieu thereof ``Any documents''; and
(ii) by striking out ``the report'' in paragraph (3) and
inserting in lieu thereof ``the documents''; and
(B) in subsection (c), by striking ``reporting'' and
inserting in lieu thereof ``documentation''.
(19) Section 2461(e)(1) is amended by striking out ``the
Act of June 25, 1938 (41 U.S.C. 47), popularly referred to as
the Wagner-O'Day Act'' and inserting in lieu thereof ``the
Javits-Wagner-O'Day Act (41 U.S.C. 47)''.
(20) Section 2533(a) is amended by striking out ``title III
of the Act'' and all that follows through ``such Act'' and
inserting in lieu thereof ``the Buy American Act (41 U.S.C.
10a)) whether application of such Act''.
(21) Section 2662(b) is amended by striking out ``small
purchase threshold'' and inserting in lieu thereof
``simplified acquisition threshold''.
(22) Section 2701(i)(1) is amended--
(A) by striking out ``Act of August 24, 1935 (40 U.S.C.
270a-270d), commonly referred to as the `Miller Act','' and
inserting in lieu thereof ``Miller Act (40 U.S.C. 270a et
seq.)''; and
(B) by striking out ``such Act of August 24, 1935'' and
inserting in lieu thereof ``the Miller Act''.
(c) Small Business Act.--The Small Business Act (15 U.S.C.
632 et seq.) is amended as follows:
(1) Section 8(d) (15 U.S.C. 637(d)) is amended--
(A) in paragraph (1), by striking out the second comma
after ``small business concerns'' the first place it appears;
and
(B) in paragraph (6)(C), by striking out ``and small
business concerns owned and controlled by the socially and
economically disadvantaged individuals'' and inserting in
lieu thereof ``, small business concerns owned and controlled
by socially and economically disadvantaged individuals, and
small business concerns owned and controlled by women''.
(2) Section 8(f) (15 U.S.C. 637(f)) is amended by inserting
``and'' after the semicolon at the end of paragraph (5).
(3) Section 15(g)(2) (15 U.S.C. 644(g)(2)) is amended by
striking out the second comma after the first appearance of
``small business concerns''.
(d) Title 31, United States Code.--Title 31, United States
Code, is amended as follows:
(1) Section 3551 is amended--
(A) by striking out ``subchapter--'' and inserting in lieu
thereof ``subchapter:''; and
(B) in paragraph (2), by striking out ``or proposed
contract'' and inserting in lieu thereof ``or a solicitation
or other request for offers''.
(2) Section 3553(b)(3) is amended by striking out
``3554(a)(3)'' and inserting in lieu thereof ``3554(a)(4)''.
(3) Section 3554(b)(2) is amended by striking out ``section
3553(d)(2)(A)(i)'' and inserting in lieu thereof ``section
3553(d)(3)(C)(i)(I)''.
(e) Federal Property and Administrative Services Act of
1949.--The Federal Property and Administrative Services Act
of 1949 is amended as follows:
(1) The table of contents in section 1 (40 U.S.C. 471
prec.) is amended--
(A) by striking out the item relating to section 104;
(B) by striking out the item relating to section 201 and
inserting in lieu thereof the following:

``Sec. 201. Procurements, warehousing, and related activities.'';

``Sec. 316. Merit-based award of grants for research and
development.'';

(D) by striking out the item relating to section 603 and
inserting in lieu thereof the following:

``Sec. 603. Authorizations for appropriations and transfer
authority.'';

and
(E) by inserting after the item relating to section 605 the
following new item:

``Sec. 606. Sex discrimination.''.

(2) Section 303(f)(2)(D) (41 U.S.C. 253(f)(2)(D)) is
amended by striking out ``the Act of June 25, 1938 (41 U.S.C.
46 et seq.), popularly referred to as the Wagner-O'Day Act,''
and inserting in lieu thereof ``the Javits-Wagner-O'Day Act
(41 U.S.C. 46 et seq.),''.
(3) The heading for paragraph (1) of section 304A(c) (41
U.S.C. 254b(c)) is amended by changing each letter that is
capitalized (other than the first letter of the first word)
to lower case.
(4) Subsection (d)(2)(A)(ii) of section 304A (41 U.S.C.
254b) is amended by inserting ``to'' after ``The information
referred''.
(5) Section 304C(a)(2) is amended by striking out ``section
304B'' and inserting in lieu thereof ``section 304A''.
(6) Section 307(b) is amended by striking out ``section
305(c)'' and inserting in lieu thereof ``section 305(d)''.
(7) The heading for section 314A (41 U.S.C. 264a) is
amended to read as follows:

``SEC. 314A. DEFINITIONS RELATING TO PROCUREMENT OF
COMMERCIAL ITEMS.''.

(8) Section 315(b) (41 U.S.C. 265(b)) is amended by
striking out ``inspector general'' both places it appears and
inserting in lieu thereof ``Inspector General''.
(9) The heading for section 316 (41 U.S.C. 266) is amended
by inserting at the end a period.
(f) Walsh-Healey Act.--
(1) The Walsh-Healey Act (41 U.S.C. 35 et seq.) is
amended--
(A) by transferring the second section 11 (as added by
section 7201(4) of Public Law 103-355) so as to appear after
section 10; and
(B) by redesignating the three sections following such
section 11 (as so transferred) as sections 12, 13, and 14.
(2) Such Act is further amended in section 10--
(A) in subsection (b), by striking out ``section 1(b)'' and
inserting in lieu thereof ``section 1(a)''; and
(B) in subsection (c), by striking out the comma after ``
`locality' ''.
(g) Anti-Kickback Act of 1986.--Section 7(d) of the Anti-
Kickback Act of 1986 (41 U.S.C. 57(d)) is amended--
(1) by striking out ``such Act'' and inserting in lieu
thereof ``the Office of Federal Procurement Policy Act''; and
(2) by striking out the second period at the end.
(h) Office of Federal Procurement Policy Act.--The Office
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is
amended as follows:
(1) Section 6 (41 U.S.C. 405) is amended by transferring
paragraph (12) of subsection (d) (as such paragraph was
redesignated by section 5091(2) of the Federal Acquisition
Streamlining Act of 1994 (P.L. 103-355; 108 Stat. 3361)) to
the end of that subsection.
(2) Section 6(11) (41 U.S.C. 405(11)) is amended by
striking out ``small business'' and inserting in lieu thereof
``small businesses''.
(3) Section 18(b) (41 U.S.C. 416(b)) is amended by
inserting ``and'' after the semicolon at the end of paragraph
(5).
(4) Section 26(f)(3) (41 U.S.C. 422(f)(3)) is amended in
the first sentence by striking out ``Not later than 180 days
after the date of enactment of this section, the
Administrator'' and inserting in lieu thereof ``The
Administrator''.
(i) Other Laws.--
(1) The National Defense Authorization Act for Fiscal Year
1994 (Public Law 103-160) is amended as follows:
(A) Section 126(c) (107 Stat. 1567) is amended by striking
out ``section 2401 of title 10, United States Code, or
section 9081 of the Department of Defense Appropriations Act,
1990 (10 U.S.C. 2401 note).'' and inserting in lieu thereof
``section 2401 or 2401a of title 10, United States Code.''.
(B) Section 127 (107 Stat. 1568) is amended--
(i) in subsection (a), by striking out ``section 2401 of
title 10, United States Code, or section 9081 of the
Department of Defense Appropriations Act, 1990 (10 U.S.C.
2401 note).'' and inserting in lieu thereof ``section 2401 or
2401a of title 10, United States Code.''; and
(ii) in subsection (e), by striking out ``section 9081 of
the Department of Defense Appropriations Act, 1990 (10 U.S.C.
2401 note).'' and inserting in lieu thereof ``section 2401a
of title 10, United States Code.''.
(2) The National Defense Authorization Act for Fiscal Years
1990 and 1991 (Public Law 101-189) is amended by striking out
section 824.
(3) Section 117 of the National Defense Authorization Act,
Fiscal Year 1989 (Public Law

[[Page H494]]
100-456; 10 U.S.C. 2431 note) is amended by striking out subsection
(c).
(4) The National Defense Authorization Act for Fiscal Years
1988 and 1989 (Public Law 100-180) is amended by striking out
section 825 (10 U.S.C. 2432 note).
(5) Section 11 of Public Law 101-552 (5 U.S.C. 581 note) is
amended by inserting ``under'' before ``the amendments made
by this Act''.
(6) The last sentence of section 6 of the Federal Power Act
(16 U.S.C. 799) is repealed.
(7) Section 101(a)(11)(A) of the Rehabilitation Act of 1973
(29 U.S.C. 721(a)(11)(A)) is amended by striking out ``the
Act entitled `An Act to create a Committee on Purchases of
Blind-made Products, and for other purposes', approved June
25, 1938 (commonly known as the Wagner-O'Day Act; 41 U.S.C.
46 et seq.)'' and inserting in lieu thereof ``the Javits-
Wagner-O'Day Act (41 U.S.C. 46 et seq.)''.
(8) The first section 5 of the Miller Act (40 U.S.C. 270a
note) is redesignated as section 7 and, as so redesignated,
is transferred to the end of that Act.
(9) Section 3737(g) of the Revised Statutes of the United
States (41 U.S.C. 15(g)) is amended by striking out ``rights
of obligations'' and inserting in lieu thereof ``rights or
obligations''.
(10) The Act of June 15, 1940 (41 U.S.C. 20a; Chapter 367;
54 Stat. 398), is repealed.
(11) The Act of November 28, 1943 (41 U.S.C. 20b; Chapter
328; 57 Stat. 592), is repealed.
(12) Section 3741 of the Revised Statutes of the United
States (41 U.S.C. 22), as amended by section 6004 of Public
Law 103-355 (108 Stat. 3364), is amended by striking out ``No
member'' and inserting in lieu thereof ``Sec. 3741. No
Member''.
(13) Section 5152(a)(1) of the Drug-Free Workplace Act of
1988 (41 U.S.C. 701(a)(1)) is amended by striking out ``as
defined in section 4 of the Office of Federal Procurement
Policy Act (41 U.S.C. 403)'' and inserting in lieu thereof
``(as defined in section 4(12) of such Act (41 U.S.C.
403(12)))''.

SEC. 4322. MISCELLANEOUS AMENDMENTS TO FEDERAL ACQUISITION
LAWS.

(a) Office of Federal Procurement Policy Act.--The Office
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is
amended as follows:
(1) Section 6(b) (41 U.S.C. 405(b)) is amended by striking
out the second comma after ``under subsection (a)'' in the
first sentence.
(2) Section 25(b)(2) (41 U.S.C. 421(b)(2)) is amended by
striking out ``Under Secretary of Defense for Acquisition''
and inserting in lieu thereof ``Under Secretary of Defense
for Acquisition and Technology''.
(b) Other Laws.--
(1) Section 11(2) of the Inspector General Act of 1978 (5
U.S.C. App.) is amended by striking out the second comma
after ``Community Service''.
(2) Section 908(e) of the Defense Acquisition Improvement
Act of 1986 (10 U.S.C. 2326 note) is amended by striking out
``section 2325(g)'' and inserting in lieu thereof ``section
2326(g)''.
(3) Effective as of August 9, 1989, and as if included
therein as enacted, Public Law 101-73 is amended in section
501(b)(1)(A) (103 Stat. 393) by striking out ``be,'' and
inserting in lieu thereof ``be;'' in the second quoted matter
therein.
(4) Section 3732(a) of the Revised Statutes of the United
States (41 U.S.C. 11(a)) is amended by striking out the
second comma after ``quarters''.
(5) Section 2 of the Contract Disputes Act of 1978 (41
U.S.C. 601) is amended in paragraphs (3), (5), (6), and (7),
by striking out ``The'' and inserting in lieu thereof
``the''.
(6) Section 6 of the Contract Disputes Act of 1978 (41
U.S.C. 605) is amended in subsections (d) and (e) by
inserting after ``United States Code'' each place it appears
the following: ``(as in effect on September 30, 1995)''.
(7) Section 13 of the Contract Disputes Act of 1978 (41
U.S.C. 612) is amended--
(A) in subsection (a), by striking out ``section 1302 of
the Act of July 27, 1956, (70 Stat. 694, as amended; 31
U.S.C. 724a)'' and inserting in lieu thereof ``section 1304
of title 31, United States Code''; and
(B) in subsection (c), by striking out ``section 1302 of
the Act of July 27, 1956, (70 Stat. 694, as amended; 31
U.S.C. 724a)'' and inserting in lieu thereof ``section 1304
of title 31, United States Code,''.
TITLE XLIV--EFFECTIVE DATES AND IMPLEMENTATION

SEC. 4401. EFFECTIVE DATE AND APPLICABILITY.

(a) Effective Date.--Except as otherwise provided in this
division, this division and the amendments made by this
division shall take effect on the date of the enactment of
this Act.
(b) Applicability of Amendments.--
(1) Solicitations, unsolicited proposals, and related
contracts.--An amendment made by this division shall apply,
in the manner prescribed in the final regulations promulgated
pursuant to section 4402 to implement such amendment, with
respect to any solicitation that is issued, any unsolicited
proposal that is received, and any contract entered into
pursuant to such a solicitation or proposal, on or after the
date described in paragraph (3).
(2) Other matters.--An amendment made by this division
shall also apply, to the extent and in the manner prescribed
in the final regulations promulgated pursuant to section 4402
to implement such amendment, with respect to any matter
related to--
(A) a contract that is in effect on the date described in
paragraph (3);
(B) an offer under consideration on the date described in
paragraph (3); or
(C) any other proceeding or action that is ongoing on the
date described in paragraph (3).
(3) Demarcation date.--The date referred to in paragraphs
(1) and (2) is the date specified in such final regulations.
The date so specified shall be January 1, 1997, or any
earlier date that is not within 30 days after the date on
which such final regulations are published.

SEC. 4402. IMPLEMENTING REGULATIONS.

(a) Proposed Revisions.--Proposed revisions to the Federal
Acquisition Regulation and such other proposed regulations
(or revisions to existing regulations) as may be necessary to
implement this Act shall be published in the Federal Register
not later than 210 days after the date of the enactment of
this Act.
(b) Public Comment.--The proposed regulations described in
subsection (a) shall be made available for public comment for
a period of not less than 60 days.
(c) Final Regulations.--Final regulations shall be
published in the Federal Register not later than 330 days
after the date of enactment of this Act.
(d) Modifications.--Final regulations promulgated pursuant
to this section to implement an amendment made by this Act
may provide for modification of an existing contract without
consideration upon the request of the contractor.
(e) Savings Provisions.--
(1) Validity of prior actions.--Nothing in this division
shall be construed to affect the validity of any action taken
or any contract entered into before the date specified in the
regulations pursuant to section 4401(b)(3) except to the
extent and in the manner prescribed in such regulations.
(2) Renegotiation and modification of preexisting
contracts.--Except as specifically provided in this division,
nothing in this division shall be construed to require the
renegotiation or modification of contracts in existence on
the date of the enactment of this Act.
(3) Continued applicability of preexisting law.--Except as
otherwise provided in this division, a law amended by this
division shall continue to be applied according to the
provisions thereof as such law was in effect on the day
before the date of the enactment of this Act until--
(A) the date specified in final regulations implementing
the amendment of that law (as promulgated pursuant to this
section); or
(B) if no such date is specified in regulations, January 1,
1997.
DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM

SEC. 5001. SHORT TITLE.

This division may be cited as the ``Information Technology
Management Reform Act of 1996''.

SEC. 5002. DEFINITIONS.

In this division:
(1) Director.--The term ``Director'' means the Director of
the Office of Management and Budget.
(2) Executive agency.--The term ``executive agency'' has
the meaning given that term in section 4(1) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(1)).
(3) Information technology.--(A) The term ``information
technology'', with respect to an executive agency means any
equipment or interconnected system or subsystem of equipment,
that is used in the automatic acquisition, storage,
manipulation, management, movement, control, display,
switching, interchange, transmission, or reception of data or
information by the executive agency. For purposes of the
preceding sentence, equipment is used by an executive agency
if the equipment is used by the executive agency directly or
is used by a contractor under a contract with the executive
agency which (i) requires the use of such equipment, or (ii)
requires the use, to a significant extent, of such equipment
in the performance of a service or the furnishing of a
product.
(B) The term ``information technology'' includes computers,
ancillary equipment, software, firmware and similar
procedures, services (including support services), and
related resources.
(C) Notwithstanding subparagraphs (A) and (B), the term
``information technology'' does not include any equipment
that is acquired by a Federal contractor incidental to a
Federal contract.
(4) Information resources.--The term ``information
resources'' has the meaning given such term in section
3502(6) of title 44, United States Code.
(5) Information resources management.--The term
``information resources management'' has the meaning given
such term in section 3502(7) of title 44, United States Code.
(6) Information system.--The term ``information system''
has the meaning given such term in section 3502(8) of title
44, United States Code.
(7) Commercial item.--The term ``commercial item'' has the
meaning given that term in section 4(12) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(12)).

[[Page H495]]

TITLE LI--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY
Subtitle A--General Authority

SEC. 5101. REPEAL OF CENTRAL AUTHORITY OF THE ADMINISTRATOR
OF GENERAL SERVICES.

Section 111 of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 759) is repealed.
Subtitle B--Director of the Office of Management and Budget

SEC. 5111. RESPONSIBILITY OF DIRECTOR.

In fulfilling the responsibility to administer the
functions assigned under chapter 35 of title 44, United
States Code, the Director shall comply with this title with
respect to the specific matters covered by this title.

SEC. 5112. CAPITAL PLANNING AND INVESTMENT CONTROL.

(a) Federal Information Technology.--The Director shall
perform the responsibilities set forth in this section in
fulfilling the responsibilities under section 3504(h) of
title 44, United States Code.
(b) Use of Information Technology in Federal Programs.--The
Director shall promote and be responsible for improving the
acquisition, use, and disposal of information technology by
the Federal Government to improve the productivity,
efficiency, and effectiveness of Federal programs, including
through dissemination of public information and the reduction
of information collection burdens on the public.
(c) Use of Budget Process.--The Director shall develop, as
part of the budget process, a process for analyzing,
tracking, and evaluating the risks and results of all major
capital investments made by an executive agency for
information systems. The process shall cover the life of each
system and shall include explicit criteria for analyzing the
projected and actual costs, benefits, and risks associated
with the investments. At the same time that the President
submits the budget for a fiscal year to Congress under
section 1105(a) of title 31, United States Code, the Director
shall submit to Congress a report on the net program
performance benefits achieved as a result of major capital
investments made by executive agencies in information systems
and how the benefits relate to the accomplishment of the
goals of the executive agencies.
(d) Information Technology Standards.--The Director shall
oversee the development and implementation of standards and
guidelines pertaining to Federal computer systems by the
Secretary of Commerce through the National Institute of
Standards and Technology under section 5131 and section 20 of
the National Institute of Standards and Technology Act (15
U.S.C. 278g-3).
(e) Designation of Executive Agents for Acquisitions.--The
Director shall designate (as the Director considers
appropriate) one or more heads of executive agencies as
executive agent for Government-wide acquisitions of
information technology.
(f) Use of Best Practices in Acquisitions.--The Director
shall encourage the heads of the executive agencies to
develop and use the best practices in the acquisition of
information technology.
(g) Assessment of Other Models for Managing Information
Technology.--The Director shall assess, on a continuing
basis, the experiences of executive agencies, State and local
governments, international organizations, and the private
sector in managing information technology.
(h) Comparison of Agency Uses of Information Technology.--
The Director shall compare the performances of the executive
agencies in using information technology and shall
disseminate the comparisons to the heads of the executive
agencies.
(i) Training.--The Director shall monitor the development
and implementation of training in information resources
management for executive agency personnel.
(j) Informing Congress.--The Director shall keep Congress
fully informed on the extent to which the executive agencies
are improving the performance of agency programs and the
accomplishment of agency missions through the use of the best
practices in information resources management.
(k) Procurement Policy and Acquisitions of Information
Technology.--The Director shall coordinate the development
and review by the Administrator of the Office of Information
and Regulatory Affairs of policy associated with Federal
acquisition of information technology with the Office of
Federal Procurement Policy.

SEC. 5113. PERFORMANCE-BASED AND RESULTS-BASED MANAGEMENT.

(a) In General.--The Director shall encourage the use of
performance-based and results-based management in fulfilling
the responsibilities assigned under section 3504(h), of title
44, United States Code.
(b) Evaluation of Agency Programs and Investments.--
(1) Requirement.--The Director shall evaluate the
information resources management practices of the executive
agencies with respect to the performance and results of the
investments made by the executive agencies in information
technology.
(2) Direction for executive agency action.--The Director
shall issue to the head of each executive agency clear and
concise direction that the head of such agency shall--
(A) establish effective and efficient capital planning
processes for selecting, managing, and evaluating the results
of all of its major investments in information systems;
(B) determine, before making an investment in a new
information system--
(i) whether the function to be supported by the system
should be performed by the private sector and, if so, whether
any component of the executive agency performing that
function should be converted from a governmental organization
to a private sector organization; or
(ii) whether the function should be performed by the
executive agency and, if so, whether the function should be
performed by a private sector source under contract or by
executive agency personnel;
(C) analyze the missions of the executive agency and, based
on the analysis, revise the executive agency's mission-
related processes and administrative processes, as
appropriate, before making significant investments in
information technology to be used in support of those
missions; and
(D) ensure that the information security policies,
procedures, and practices are adequate.
(3) Guidance for multiagency investments.--The direction
issued under paragraph (2) shall include guidance for
undertaking efficiently and effectively interagency and
Government-wide investments in information technology to
improve the accomplishment of missions that are common to the
executive agencies.
(4) Periodic reviews.--The Director shall implement through
the budget process periodic reviews of selected information
resources management activities of the executive agencies in
order to ascertain the efficiency and effectiveness of
information technology in improving the performance of the
executive agency and the accomplishment of the missions of
the executive agency.
(5) Enforcement of accountability.--
(A) In general.--The Director may take any authorized
action that the Director considers appropriate, including an
action involving the budgetary process or appropriations
management process, to enforce accountability of the head of
an executive agency for information resources management and
for the investments made by the executive agency in
information technology.
(B) Specific actions.--Actions taken by the Director in the
case of an executive agency may include--
(i) recommending a reduction or an increase in any amount
for information resources that the head of the executive
agency proposes for the budget submitted to Congress under
section 1105(a) of title 31, United States Code;
(ii) reducing or otherwise adjusting apportionments and
reapportionments of appropriations for information resources;
(iii) using other authorized administrative controls over
appropriations to restrict the availability of funds for
information resources; and
(iv) designating for the executive agency an executive
agent to contract with private sector sources for the
performance of information resources management or the
acquisition of information technology.
Subtitle C--Executive Agencies

SEC. 5121. RESPONSIBILITIES.

In fulfilling the responsibilities assigned under chapter
35 of title 44, United States Code, the head of each
executive agency shall comply with this subtitle with respect
to the specific matters covered by this subtitle.

SEC. 5122. CAPITAL PLANNING AND INVESTMENT CONTROL.

(a) Design of Process.--In fulfilling the responsibilities
assigned under section 3506(h) of title 44, United States
Code, the head of each executive agency shall design and
implement in the executive agency a process for maximizing
the value and assessing and managing the risks of the
information technology acquisitions of the executive agency.
(b) Content of Process.--The process of an executive agency
shall--
(1) provide for the selection of information technology
investments to be made by the executive agency, the
management of such investments, and the evaluation of the
results of such investments;
(2) be integrated with the processes for making budget,
financial, and program management decisions within the
executive agency;
(3) include minimum criteria to be applied in considering
whether to undertake a particular investment in information
systems, including criteria related to the quantitatively
expressed projected net, risk-adjusted return on investment
and specific quantitative and qualitative criteria for
comparing and prioritizing alternative information systems
investment projects;
(4) provide for identifying information systems investments
that would result in shared benefits or costs for other
Federal agencies or State or local governments;
(5) provide for identifying for a proposed investment
quantifiable measurements for determining the net benefits
and risks of the investment; and
(6) provide the means for senior management personnel of
the executive agency to obtain timely information regarding
the progress of an investment in an information system,
including a system of milestones for measuring progress, on
an independently verifiable basis, in terms of cost,
capability of the system to meet specified requirements,
timeliness, and quality.

SEC. 5123. PERFORMANCE AND RESULTS-BASED MANAGEMENT.

In fulfilling the responsibilities under section 3506(h) of
title 44, United States Code, the head of an executive agency
shall--

[[Page H496]]

(1) establish goals for improving the efficiency and
effectiveness of agency operations and, as appropriate, the
delivery of services to the public through the effective use
of information technology;
(2) prepare an annual report, to be included in the
executive agency's budget submission to Congress, on the
progress in achieving the goals;
(3) ensure that performance measurements are prescribed for
information technology used by or to be acquired for, the
executive agency and that the performance measurements
measure how well the information technology supports programs
of the executive agency;
(4) where comparable processes and organizations in the
public or private sectors exist, quantitatively benchmark
agency process performance against such processes in terms of
cost, speed, productivity, and quality of outputs and
outcomes;
(5) analyze the missions of the executive agency and, based
on the analysis, revise the executive agency's mission-
related processes and administrative processes as appropriate
before making significant investments in information
technology that is to be used in support of the performance
of those missions; and
(6) ensure that the information security policies,
procedures, and practices of the executive agency are
adequate.

SEC. 5124. ACQUISITIONS OF INFORMATION TECHNOLOGY.

(a) In General.--The authority of the head of an executive
agency to conduct an acquisition of information technology
includes the following authorities:
(1) To acquire information technology as authorized by law.
(2) To enter into a contract that provides for multiagency
acquisitions of information technology in accordance with
guidance issued by the Director.
(3) If the Director finds that it would be advantageous for
the Federal Government to do so, to enter into a multiagency
contract for procurement of commercial items of information
technology that requires each executive agency covered by the
contract, when procuring such items, either to procure the
items under that contract or to justify an alternative
procurement of the items.
(b) FTS 2000 Program.--Notwithstanding any other provision
of this or any other law, the Administrator of General
Services shall continue to manage the FTS 2000 program, and
to coordinate the follow-on to that program, on behalf of and
with the advice of the heads of executive agencies.

SEC. 5125. AGENCY CHIEF INFORMATION OFFICER.

(a) Designation of Chief Information Officers.--Section
3506 of title 44, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (2)(A), by striking out ``senior
official'' and inserting in lieu thereof ``Chief Information
Officer'';
(B) in paragraph (2)(B)--
(i) by striking out ``senior officials'' in the first
sentence and inserting in lieu thereof ``Chief Information
Officers'';
(ii) by striking out ``official'' in the second sentence
and inserting in lieu thereof ``Chief Information Officer'';
and
(iii) by striking out ``officials'' in the second sentence
and inserting in lieu thereof ``Chief Information Officers'';
and
(C) in paragraphs (3) and (4), by striking out ``senior
official'' each place it appears and inserting in lieu
thereof ``Chief Information Officer''; and
(2) in subsection (c)(1), by striking out ``official'' in
the matter preceding subparagraph (A) and inserting in lieu
thereof ``Chief Information Officer''.
(b) General Responsibilities.--The Chief Information
Officer of an executive agency shall be responsible for--
(1) providing advice and other assistance to the head of
the executive agency and other senior management personnel of
the executive agency to ensure that information technology is
acquired and information resources are managed for the
executive agency in a manner that implements the policies and
procedures of this division, consistent with chapter 35 of
title 44, United States Code, and the priorities established
by the head of the executive agency;
(2) developing, maintaining, and facilitating the
implementation of a sound and integrated information
technology architecture for the executive agency; and
(3) promoting the effective and efficient design and
operation of all major information resources management
processes for the executive agency, including improvements to
work processes of the executive agency.
(c) Duties and Qualifications.--The Chief Information
Officer of an agency that is listed in section 901(b) of
title 31, United States Code, shall--
(1) have information resources management duties as that
official's primary duty;
(2) monitor the performance of information technology
programs of the agency, evaluate the performance of those
programs on the basis of the applicable performance
measurements, and advise the head of the agency regarding
whether to continue, modify, or terminate a program or
project; and
(3) annually, as part of the strategic planning and
performance evaluation process required (subject to section
1117 of title 31, United States Code) under section 306 of
title 5, United States Code, and sections 1105(a)(29), 1115,
1116, 1117, and 9703 of title 31, United States Code--
(A) assess the requirements established for agency
personnel regarding knowledge and skill in information
resources management and the adequacy of such requirements
for facilitating the achievement of the performance goals
established for information resources management;
(B) assess the extent to which the positions and personnel
at the executive level of the agency and the positions and
personnel at management level of the agency below the
executive level meet those requirements;
(C) in order to rectify any deficiency in meeting those
requirements, develop strategies and specific plans for
hiring, training, and professional development; and
(D) report to the head of the agency on the progress made
in improving information resources management capability.
(d) Information Technology Architecture Defined.--In this
section, the term ``information technology architecture'',
with respect to an executive agency, means an integrated
framework for evolving or maintaining existing information
technology and acquiring new information technology to
achieve the agency's strategic goals and information
resources management goals.
(e) Executive Level IV.--Section 5315 of title 5, United
States Code, is amended by adding at the end the following:
``Chief Information Officer, Department of Agriculture.
``Chief Information Officer, Department of Commerce.
``Chief Information Officer, Department of Defense (unless
the official designated as the Chief Information Officer of
the Department of Defense is an official listed under section
5312, 5313, or 5314 of this title).
``Chief Information Officer, Department of Education.
``Chief Information Officer, Department of Energy.
``Chief Information Officer, Department of Health and Human
Services.
``Chief Information Officer, Department of Housing and
Urban Development.
``Chief Information Officer, Department of Interior.
``Chief Information Officer, Department of Justice.
``Chief Information Officer, Department of Labor.
``Chief Information Officer, Department of State.
``Chief Information Officer, Department of Transportation.
``Chief Information Officer, Department of Treasury.
``Chief Information Officer, Department of Veterans
Affairs.
``Chief Information Officer, Environmental Protection
Agency.
``Chief Information Officer, National Aeronautics and Space
Administration.
``Chief Information Officer, Agency for International
Development.
``Chief Information Officer, Federal Emergency Management
Agency.
``Chief Information Officer, General Services
Administration.
``Chief Information Officer, National Science Foundation.
``Chief Information Officer, Nuclear Regulatory Agency.
``Chief Information Officer, Office of Personnel
Management.
``Chief Information Officer, Small Business
Administration.''.

SEC. 5126. ACCOUNTABILITY.

The head of each executive agency, in consultation with the
Chief Information Officer and the Chief Financial Officer of
that executive agency (or, in the case of an executive agency
without a Chief Financial Officer, any comparable official),
shall establish policies and procedures that--
(1) ensure that the accounting, financial, and asset
management systems and other information systems of the
executive agency are designed, developed, maintained, and
used effectively to provide financial or program performance
data for financial statements of the executive agency;
(2) ensure that financial and related program performance
data are provided on a reliable, consistent, and timely basis
to executive agency financial management systems; and
(3) ensure that financial statements support--
(A) assessments and revisions of mission-related processes
and administrative processes of the executive agency; and
(B) performance measurement of the performance in the case
of investments made by the agency in information systems.

SEC. 5127. SIGNIFICANT DEVIATIONS.

The head of an executive agency shall identify in the
strategic information resources management plan required
under section 3506(b)(2) of title 44, United States Code, any
major information technology acquisition program, or any
phase or increment of such a program, that has significantly
deviated from the cost, performance, or schedule goals
established for the program.

SEC. 5128. INTERAGENCY SUPPORT.

Funds available for an executive agency for oversight,
acquisition, and procurement of information technology may be
used by the head of the executive agency to support jointly
with other executive agencies the activities of interagency
groups that are established to advise the Director in
carrying out the Director's responsibilities under this
title. The use of such funds for that purpose shall be
subject to such requirements and

[[Page H497]]
limitations on uses and amounts as the Director may prescribe. The
Director shall prescribe any such requirements and
limitations during the Director's review of the executive
agency's proposed budget submitted to the Director by the
head of the executive agency for purposes of section 1105 of
title 31, United States Code.
Subtitle D--Other Responsibilities

SEC. 5131. RESPONSIBILITIES REGARDING EFFICIENCY, SECURITY,
AND PRIVACY OF FEDERAL COMPUTER SYSTEMS.

(a) Standards and Guidelines.--
(1) Authority.--The Secretary of Commerce shall, on the
basis of standards and guidelines developed by the National
Institute of Standards and Technology pursuant to paragraphs
(2) and (3) of section 20(a) of the National Institute of
Standards and Technology Act (15 U.S.C. 278g-3(a)),
promulgate standards and guidelines pertaining to Federal
computer systems. The Secretary shall make such standards
compulsory and binding to the extent to which the Secretary
determines necessary to improve the efficiency of operation
or security and privacy of Federal computer systems. The
President may disapprove or modify such standards and
guidelines if the President determines such action to be in
the public interest. The President's authority to disapprove
or modify such standards and guidelines may not be delegated.
Notice of such disapproval or modification shall be published
promptly in the Federal Register. Upon receiving notice of
such disapproval or modification, the Secretary of Commerce
shall immediately rescind or modify such standards or
guidelines as directed by the President.
(2) Exercise of authority.--The authority conferred upon
the Secretary of Commerce by this section shall be exercised
subject to direction by the President and in coordination
with the Director to ensure fiscal and policy consistency.
(b) Application of More Stringent Standards.--The head of a
Federal agency may employ standards for the cost-effective
security and privacy of sensitive information in a Federal
computer system within or under the supervision of that
agency that are more stringent than the standards promulgated
by the Secretary of Commerce under this section, if such
standards contain, at a minimum, the provisions of those
applicable standards made compulsory and binding by the
Secretary of Commerce.
(c) Waiver of Standards.--The standards determined under
subsection (a) to be compulsory and binding may be waived by
the Secretary of Commerce in writing upon a determination
that compliance would adversely affect the accomplishment of
the mission of an operator of a Federal computer system, or
cause a major adverse financial impact on the operator which
is not offset by Government-wide savings. The Secretary may
delegate to the head of one or more Federal agencies
authority to waive such standards to the extent to which the
Secretary determines such action to be necessary and
desirable to allow for timely and effective implementation of
Federal computer system standards. The head of such agency
may redelegate such authority only to a Chief Information
Officer designated pursuant to section 3506 of title 44,
United States Code. Notice of each such waiver and delegation
shall be transmitted promptly to Congress and shall be
published promptly in the Federal Register.
(d) Definitions.--In this section, the terms ``Federal
computer system'' and ``operator of a Federal computer
system'' have the meanings given such terms in section 20(d)
of the National Institute of Standards and Technology Act (15
U.S.C. 278g-3(d)).
(e) Technical Amendments.--Chapter 35 of title 44, United
States Code, is amended--
(1) in section 3504(g)--
(A) in paragraph (2), by striking out ``the Computer
Security Act of 1987 (40 U.S.C. 759 note)'' and inserting in
lieu thereof ``sections 20 and 21 of the National Institute
of Standards and Technology Act (15 U.S.C. 278g-3 and 278g-
4), section 5131 of the Information Technology Management
Reform Act of 1996, and sections 5 and 6 of the Computer
Security Act of 1987 (40 U.S.C. 759 note)''; and
(B) in paragraph (3), by striking out ``the Computer
Security Act of 1987 (40 U.S.C. 759 note)'' and inserting in
lieu thereof ``the standards and guidelines promulgated under
section 5131 of the Information Technology Management Reform
Act of 1996 and sections 5 and 6 of the Computer Security Act
of 1987 (40 U.S.C. 759 note)''; and
(2) in section 3518(d), by striking out ``Public Law 89-306
on the Administrator of the General Services Administration,
the Secretary of Commerce, or'' and inserting in lieu thereof
``section 5131 of the Information Technology Management
Reform Act of 1996 and the Computer Security Act of 1987 (40
U.S.C. 759 note) on the Secretary of Commerce or''.

SEC. 5132. SENSE OF CONGRESS.

It is the sense of Congress that, during the next five-year
period beginning with 1996, executive agencies should achieve
each year at least a 5 percent decrease in the cost (in
constant fiscal year 1996 dollars) that is incurred by the
agency for operating and maintaining information technology,
and each year a 5 percent increase in the efficiency of the
agency operations, by reason of improvements in information
resources management by the agency.
Subtitle E--National Security Systems

SEC. 5141. APPLICABILITY TO NATIONAL SECURITY SYSTEMS.

(a) In General.--Except as provided in subsection (b), this
title does not apply to national security systems.
(b) Exceptions.--
(1) In general.--Sections 5123, 5125, and 5126 apply to
national security systems.
(2) Capital planning and investment control.--The heads of
executive agencies shall apply sections 5112 and 5122 to
national security systems to the extent practicable.
(3) Performance and results of information technology
investments.--(A) Subject to subparagraph (B), the heads of
executive agencies shall apply section 5113 to national
security systems to the extent practicable.
(B) National security systems shall be subject to section
5113(b)(5) except for subparagraph (B)(iv) of that section.

SEC. 5142. NATIONAL SECURITY SYSTEM DEFINED.

(a) Definition.--In this subtitle, the term ``national
security system'' means any telecommunications or information
system operated by the United States Government, the
function, operation, or use of which--
(1) involves intelligence activities;
(2) involves cryptologic activities related to national
security;
(3) involves command and control of military forces;
(4) involves equipment that is an integral part of a weapon
or weapons system; or
(5) subject to subsection (b), is critical to the direct
fulfillment of military or intelligence missions.
(b) Limitation.--Subsection (a)(5) does not include a
system that is to be used for routine administrative and
business applications (including payroll, finance, logistics,
and personnel management applications).
TITLE LII--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

SEC. 5201. PROCUREMENT PROCEDURES.

The Federal Acquisition Regulatory Council shall ensure
that, to the maximum extent practicable, the process for
acquisition of information technology is a simplified, clear,
and understandable process that specifically addresses the
management of risk, incremental acquisitions, and the need to
incorporate commercial information technology in a timely
manner.

SEC. 5202. INCREMENTAL ACQUISITION OF INFORMATION TECHNOLOGY.

(a) Policy.--The Office of Federal Procurement Policy Act
(41 U.S.C. 401 et seq.) is amended by adding at the end the
following new section:

``SEC. 35. MODULAR CONTRACTING FOR INFORMATION TECHNOLOGY.

``(a) In General.--The head of an executive agency should,
to the maximum extent practicable, use modular contracting
for an acquisition of a major system of information
technology.
``(b) Modular Contracting Described.--Under modular
contracting, an executive agency's need for a system is
satisfied in successive acquisitions of interoperable
increments. Each increment complies with common or
commercially accepted standards applicable to information
technology so that the increments are compatible with other
increments of information technology comprising the system.
``(c) Implementation.--The Federal Acquisition Regulation
shall provide that--
``(1) under the modular contracting process, an acquisition
of a major system of information technology may be divided
into several smaller acquisition increments that--
``(A) are easier to manage individually than would be one
comprehensive acquisition;
``(B) address complex information technology objectives
incrementally in order to enhance the likelihood of achieving
workable solutions for attainment of those objectives;
``(C) provide for delivery, implementation, and testing of
workable systems or solutions in discrete increments each of
which comprises a system or solution that is not dependent on
any subsequent increment in order to perform its principal
functions; and
``(D) provide an opportunity for subsequent increments of
the acquisition to take advantage of any evolution in
technology or needs that occur during conduct of the earlier
increments;
``(2) a contract for an increment of an information
technology acquisition should, to the maximum extent
practicable, be awarded within 180 days after the date on
which the solicitation is issued and, if the contract for
that increment cannot be awarded within such period, the
increment should be considered for cancellation; and
``(3) the information technology provided for in a contract
for acquisition of information technology should be delivered
within 18 months after the date on which the solicitation
resulting in award of the contract was issued.''.
(b) Clerical Amendment.--The table of contents in section
1(b) of such Act is amended by inserting after the item
relating to section 34 the following new item:
``Sec. 35. Modular contracting for information technology.''.
TITLE LIII--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS
Subtitle A--Conduct of Pilot Programs

SEC. 5301. AUTHORITY TO CONDUCT PILOT PROGRAMS.

(a) In General.--

[[Page H498]]

(1) Purpose.--The Administrator for Federal Procurement
Policy (hereinafter referred to as the ``Administrator''), in
consultation with the Administrator for the Office of
Information and Regulatory Affairs, may conduct pilot
programs in order to test alternative approaches for
acquisition of information technology by executive agencies.
(2) Multiagency, multi-activity conduct of each program.--
Except as otherwise provided in this title, each pilot
program conducted under this title shall be carried out in
not more than two procuring activities in each of the
executive agencies that are designated by the Administrator
in accordance with this title to carry out the pilot
program. The head of each designated executive agency
shall, with the approval of the Administrator, select the
procuring activities of the executive agency that are to
participate in the test and shall designate a procurement
testing official who shall be responsible for the conduct
and evaluation of the pilot program within the executive
agency.
(b) Limitations.--
(1) Number.--Not more than two pilot programs may be
conducted under the authority of this title, including one
pilot program each pursuant to the requirements of sections
5311 and 5312.
(2) Amount.--The total amount obligated for contracts
entered into under the pilot programs conducted under the
authority of this title may not exceed $750,000,000. The
Administrator shall monitor such contracts and ensure that
contracts are not entered into in violation of the limitation
in the preceding sentence.
(c) Period of Programs.--
(1) In general.--Subject to paragraph (2), any pilot
program may be carried out under this title for the period,
not in excess of five years, that is determined by the
Administrator as being sufficient to establish reliable
results.
(2) Continuing validity of contracts.--A contract entered
into under the pilot program before the expiration of that
program shall remain in effect according to the terms of the
contract after the expiration of the program.

SEC. 5302. EVALUATION CRITERIA AND PLANS.

(a) Measurable Test Criteria.--The head of each executive
agency conducting a pilot program under section 5301 shall
establish, to the maximum extent practicable, measurable
criteria for evaluating the effects of the procedures or
techniques to be tested under the program.
(b) Test Plan.--Before a pilot program may be conducted
under section 5301, the Administrator shall submit to
Congress a detailed test plan for the program, including a
detailed description of the procedures to be used and a list
of any regulations that are to be waived.

SEC. 5303. REPORT.

(a) Requirement.--Not later than 180 days after the
completion of a pilot program under this title, the
Administrator shall--
(1) submit to the Director a report on the results and
findings under the program; and
(2) provide a copy of the report to Congress.
(b) Content.--The report shall include the following:
(1) A detailed description of the results of the program,
as measured by the criteria established for the program.
(2) A discussion of any legislation that the Administrator
recommends, or changes in regulations that the Administrator
considers necessary, in order to improve overall information
resources management within the Federal Government.

SEC. 5304. RECOMMENDED LEGISLATION.

If the Director determines that the results and findings
under a pilot program under this title indicate that
legislation is necessary or desirable in order to improve the
process for acquisition of information technology, the
Director shall transmit the Director's recommendations for
such legislation to Congress.

SEC. 5305. RULE OF CONSTRUCTION.

Nothing in this title shall be construed as authorizing the
appropriation or obligation of funds for the pilot programs
authorized under this title.
Subtitle B--Specific Pilot Programs

SEC. 5311. SHARE-IN-SAVINGS PILOT PROGRAM.

(a) Requirement.--The Administrator may authorize the heads
of two executive agencies to carry out a pilot program to
test the feasibility of--
(1) contracting on a competitive basis with a private
sector source to provide the Federal Government with an
information technology solution for improving mission-related
or administrative processes of the Federal Government; and
(2) paying the private sector source an amount equal to a
portion of the savings derived by the Federal Government from
any improvements in mission-related processes and
administrative processes that result from implementation of
the solution.
(b) Limitations.--The head of an executive agency
authorized to carry out the pilot program may, under the
pilot program, carry out one project and enter into not more
than five contracts for the project.
(c) Selection of Projects.--The projects shall be selected
by the Administrator, in consultation with the Administrator
for the Office of Information and Regulatory Affairs.

SEC. 5312. SOLUTIONS-BASED CONTRACTING PILOT PROGRAM.

(a) In General.--The Administrator may authorize the heads
of any of the executive agencies, in accordance with
subsection (d)(2), to carry out a pilot program to test the
feasibility of using solutions-based contracting for
acquisition of information technology.
(b) Solutions-Based Contracting Described.--For purposes of
this section, solutions-based contracting is an acquisition
method under which the acquisition objectives are defined by
the Federal Government user of the technology to be acquired,
a streamlined contractor selection process is used, and
industry sources are allowed to provide solutions that attain
the objectives effectively.
(c) Process Requirements.--The Administrator shall require
use of a process with the following aspects for acquisitions
under the pilot program:
(1) Acquisition plan emphasizing desired result.--
Preparation of an acquisition plan that defines the
functional requirements of the intended users of the
information technology to be acquired, identifies the
operational improvements to be achieved, and defines the
performance measurements to be applied in determining whether
the information technology acquired satisfies the defined
requirements and attains the identified results.
(2) Results-oriented statement of work.--Use of a statement
of work that is limited to an expression of the end results
or performance capabilities desired under the acquisition
plan.
(3) Small acquisition organization.--Assembly of a small
acquisition organization consisting of the following:
(A) An acquisition management team, the members of which
are to be evaluated and rewarded under the pilot program for
contributions toward attainment of the desired results
identified in the acquisition plan.
(B) A small source selection team composed of
representatives of the specific mission or administrative
area to be supported by the information technology to be
acquired, together with a contracting officer and persons
with relevant expertise.
(4) Use of source selection factors emphasizing source
qualifications and costs.--Use of source selection factors
that emphasize--
(A) the qualifications of the offeror, including such
factors as personnel skills, previous experience in providing
other private or public sector organizations with solutions
for attaining objectives similar to the objectives of the
acquisition, past contract performance, qualifications of the
proposed program manager, and the proposed management plan;
and
(B) the costs likely to be associated with the conceptual
approach proposed by the offeror.
(5) Open communications with contractor community.--Open
availability of the following information to potential
offerors:
(A) The agency mission to be served by the acquisition.
(B) The functional process to be performed by use of
information technology.
(C) The process improvements to be attained.
(6) Simple solicitation.--Use of a simple solicitation that
sets forth only the functional work description, the source
selection factors to be used in accordance with paragraph
(4), the required terms and conditions, instructions
regarding submission of offers, and the estimate of the
Federal Government's budget for the desired work.
(7) Simple proposals.--Submission of oral presentations and
written proposals that are limited in size and scope and
contain information on--
(A) the offeror's qualifications to perform the desired
work;
(B) past contract performance;
(C) the proposed conceptual approach; and
(D) the costs likely to be associated with the proposed
conceptual approach.
(8) Simple evaluation.--Use of a simplified evaluation
process, to be completed within 45 days after receipt of
proposals, which consists of the following:
(A) Identification of the most qualified offerors that are
within the competitive range.
(B) Issuance of invitations for at least three and not more
than five of the identified offerors to make oral
presentations to, and engage in discussions with, the
evaluating personnel regarding, for each offeror--
(i) the qualifications of the offeror, including how the
qualifications of the offeror relate to the approach proposed
to be taken by the offeror in the acquisition; and
(ii) the costs likely to be associated with the approach.
(C) Evaluation of the qualifications of the identified
offerors and the costs likely to be associated with the
offerors' proposals on the basis of submissions required
under the process and any oral presentations made by, and any
discussions with, the offerors.
(9) Selection of most qualified offeror.--A selection
process consisting of the following:
(A) Identification of the most qualified source, and
ranking of alternative sources, primarily on the basis of the
oral proposals, presentations, and discussions, and written
proposals submitted in accordance with paragraph (7).
(B) Conduct for 30 to 60 days of a program definition phase
(funded, in the case of the source ultimately awarded the
contract, by the Federal Government)--

[[Page H499]]

(i) during which the selected source, in consultation with
one or more intended users, develops a conceptual system
design and technical approach, defines logical phases for the
project, and estimates the total cost and the cost for each
phase; and
(ii) after which a contract for performance of the work may
be awarded to that source on the basis of cost, the
responsiveness, reasonableness, and quality of the proposed
performance, and a sharing of risk and benefits between the
source and the Government.
(C) Conduct of as many successive program definition phases
with alternative sources (in the order ranked) as is
necessary in order to award a contract in accordance with
subparagraph (B).
(10) System implementation phasing.--System implementation
to be executed in phases that are tailored to the solution,
with various contract arrangements being used, as
appropriate, for various phases and activities.
(11) Mutual authority to terminate.--Authority for the
Federal Government or the contractor to terminate the
contract without penalty at the end of any phase defined for
the project.
(12) Time management discipline.--Application of a standard
for awarding a contract within 105 to 120 days after issuance
of the solicitation.
(d) Pilot Program Design.--
(1) Joint public-private working group.--The Administrator,
in consultation with the Administrator for the Office of
Information and Regulatory Affairs, shall establish a joint
working group of Federal Government personnel and
representatives of the information technology industry to
design a plan for conduct of any pilot program carried out
under this section.
(2) Content of plan.--The plan shall provide for use of
solutions-based contracting in the Department of Defense and
not more than two other executive agencies for a total of--
(A) not more than 10 projects, each of which has an
estimated cost of between $25,000,000 and $100,000,000; and
(B) not more than 10 projects, each of which has an
estimated cost of between $1,000,000 and $5,000,000, to be
set aside for small business concerns.
(3) Complexity of projects.--(A) Subject to subparagraph
(C), each acquisition project under the pilot program shall
be sufficiently complex to provide for meaningful evaluation
of the use of solutions-based contracting for acquisition of
information technology for executive agencies.
(B) In order for an acquisition project to satisfy the
requirement in subparagraph (A), the solution for attainment
of the executive agency's objectives under the project should
not be obvious, but rather shall involve a need for some
innovative development and systems integration.
(C) An acquisition project should not be so extensive or
lengthy as to result in undue delay in the evaluation of the
use of solutions-based contracting.
(e) Monitoring by GAO.--The Comptroller General of the
United States shall--
(1) monitor the conduct, and review the results, of
acquisitions under the pilot program; and
(2) submit to Congress periodic reports containing the
views of the Comptroller General on the activities, results,
and findings under the pilot program.
TITLE LIV--ADDITIONAL INFORMATION RESOURCES MANAGEMENT MATTERS

SEC. 5401. ON-LINE MULTIPLE AWARD SCHEDULE CONTRACTING.

(a) Automation of Multiple Award Schedule Contracting.--In
order to provide for the economic and efficient procurement
of information technology and other commercial items, the
Administrator of General Services shall provide through the
Federal Acquisition Computer Network (in this section
referred to as ``FACNET''), not later than January 1, 1998,
Government-wide on-line computer access to information on
products and services that are available for ordering under
the multiple award schedules. If the Administrator determines
it is not practicable to provide such access through FACNET,
the Administrator shall provide such access through another
automated system that has the capability to perform the
functions listed in subsection (b)(1) and meets the
requirement of subsection (b)(2).
(b) Additional FACNET Functions.--(1) In addition to the
functions specified in section 30(b) of the Office of Federal
Procurement Policy Act (41 U.S.C. 426(b)), the FACNET
architecture shall have the capability to perform the
following functions:
(A) Provide basic information on prices, features, and
performance of all products and services available for
ordering through the multiple award schedules.
(B) Provide for updating that information to reflect
changes in prices, features, and performance as soon as
information on the changes becomes available.
(C) Enable users to make on-line computer comparisons of
the prices, features, and performance of similar products and
services offered by various vendors.
(2) The FACNET architecture shall be used to place orders
under the multiple award schedules in a fiscal year for an
amount equal to at least 60 percent of the total amount spent
for all orders under the multiple award schedules in that
fiscal year.
(c) Streamlined Procedures.--
(1) Pilot program.--Upon certification by the Administrator
of General Services that the FACNET architecture meets the
requirements of subsection (b)(1) and was used as required by
subsection (b)(2) in the fiscal year preceding the fiscal
year in which the certification is made, the Administrator
for Federal Procurement Policy may establish a pilot program
to test streamlined procedures for the procurement of
information technology products and services available for
ordering through the multiple award schedules.
(2) Applicability to multiple award schedule contracts.--
Except as provided in paragraph (4), the pilot program shall
be applicable to all multiple award schedule contracts for
the purchase of information technology and shall test the
following procedures:
(A) A procedure under which negotiation of the terms and
conditions for a covered multiple award schedule contract is
limited to terms and conditions other than price.
(B) A procedure under which the vendor establishes the
prices under a covered multiple award schedule contract and
may adjust those prices at any time in the discretion of the
vendor.
(C) A procedure under which a covered multiple award
schedule contract is awarded to any responsible offeror
that--
(i) has a suitable record of past performance, which may
include past performance on multiple award schedule
contracts;
(ii) agrees to terms and conditions that the Administrator
determines as being required by law or as being appropriate
for the purchase of commercial items; and
(iii) agrees to establish and update prices, features, and
performance and to accept orders electronically through the
automated system established pursuant to subsection (a).
(3) Comptroller general review and report.--(A) Not later
than three years after the date on which the pilot program is
established, the Comptroller General of the United States
shall review the pilot program and report to the Congress on
the results of the pilot program.
(B) The report shall include the following:
(i) An evaluation of the extent to which there is
competition for the orders placed under the pilot program.
(ii) The effect that the streamlined procedures under the
pilot program have on prices charged under multiple award
schedule contracts.
(iii) The effect that such procedures have on paperwork
requirements for multiple award schedule contracts and
orders.
(iv) The impact of the pilot program on small businesses
and socially and economically disadvantaged small businesses.
(4) Withdrawal of schedule or portion of schedule from
pilot program.--The Administrator may withdraw a multiple
award schedule or portion of a schedule from the pilot
program if the Administrator determines that (A) price
competition is not available under such schedule or portion
thereof, or (B) the cost to the Government for that schedule
or portion thereof for the previous year was higher than it
would have been if the contracts for such schedule or portion
thereof had been awarded using procedures that would apply if
the pilot program were not in effect. The Administrator shall
notify Congress at least 30 days before the date on which the
Administrator withdraws a schedule or portion thereof under
this paragraph. The authority under this paragraph may not be
delegated.
(5) Termination of pilot program.--Unless reauthorized by
law, the authority of the Administrator to award contracts
under the pilot program shall expire four years after the
date on which the pilot program is established. Contracts
entered into before the authority expires shall remain in
effect in accordance with their terms notwithstanding the
expiration of the authority to award new contracts under the
pilot program.
(d) Definition.--In this section, the term ``FACNET'' means
the Federal Acquisition Computer Network established under
section 30 of the Office of Federal Procurement Policy Act
(41 U.S.C. 426).

SEC. 5402. IDENTIFICATION OF EXCESS AND SURPLUS COMPUTER
EQUIPMENT.

Not later than six months after the date of the enactment
of this Act, the head of an executive agency shall inventory
all computer equipment under the control of that official.
After completion of the inventory, the head of the executive
agency shall maintain, in accordance with title II of the
Federal Property and Administrative Services Act of 1949 (40
U.S.C. 481 et seq.), an inventory of any such equipment that
is excess or surplus property.

SEC. 5403. ACCESS OF CERTAIN INFORMATION IN INFORMATION
SYSTEMS TO THE DIRECTORY ESTABLISHED UNDER
SECTION 4101 OF TITLE 44, UNITED STATES CODE.

Notwithstanding any other provision of this division, if in
designing an information technology system pursuant to this
division, the head of an executive agency determines that a
purpose of the system is to disseminate information to the
public, then the head of such executive agency shall
reasonably ensure that an index of information disseminated
by such system is included in the directory created pursuant
to section 4101 of title 44, United States Code. Nothing in
this section authorizes the dissemination of information to
the public unless otherwise authorized.

[[Page H500]]

TITLE LV--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

SEC. 5501. PERIOD FOR PROCESSING PROTESTS.

Title 31, United States Code, is amended as follows:
(1) Section 3553(b)(2)(A) is amended by striking out ``35''
and inserting in lieu thereof ``30''.
(2) Section 3554 is amended--
(A) in subsection (a)(1), by striking out ``125'' and
inserting in lieu thereof ``100''; and
(B) in subsection (e)--
(i) in paragraph (1), by striking out ``Government
Operations'' and inserting in lieu thereof ``Government
Reform and Oversight''; and
(ii) in paragraph (2), by striking out ``125'' and
inserting in lieu thereof ``100''.

SEC. 5502. AVAILABILITY OF FUNDS FOLLOWING GAO RESOLUTION OF
CHALLENGE TO CONTRACTING ACTION.

(a) In General.--Section 1558 of title 31, United States
Code, is amended--
(1) in the first sentence of subsection (a)--
(A) by inserting ``or other action referred to in
subsection (b)'' after ``protest'' the first place it
appears;
(B) by striking out ``90 working days'' and inserting in
lieu thereof ``100 days''; and
(C) by inserting ``or other action'' after ``protest'' the
second place it appears; and
(2) by striking out subsection (b) and inserting in lieu
thereof the following:
``(b) Subsection (a) applies with respect to--
``(1) any protest filed under subchapter V of chapter 35 of
this title; or
``(2) an action commenced under administrative procedures
or for a judicial remedy if--
``(A) the action involves a challenge to--
``(i) a solicitation for a contract;
``(ii) a proposed award of a contract;
``(iii) an award of a contract; or
``(iv) the eligibility of an offeror or potential offeror
for a contract or of the contractor awarded the contract; and
``(B) commencement of the action delays or prevents an
executive agency from making an award of a contract or
proceeding with a procurement.''.
(b) Conforming Amendment.--The heading of such section is
amended to read as follows:

``Sec. 1558. Availability of funds following resolution of a
formal protest or other challenge''.

(c) Clerical Amendment.--The item relating to such section
in the table of sections at the beginning of chapter 15 of
title 31, United States Code, is amended to read as follows:

``1558. Availability of funds following resolution of a formal protest
or other challenge.''.
TITLE LVI--CONFORMING AND CLERICAL AMENDMENTS

SEC. 5601. AMENDMENTS TO TITLE 10, UNITED STATES CODE.

(a) Protest File.--Section 2305(e) is amended by striking
out paragraph (3).
(b) Multiyear Contracts.--Section 2306b of such title is
amended--
(1) by striking out subsection (k); and
(2) by redesignating subsection (l) as subsection (k).
(c) Law Inapplicable to Procurement of Information
Technology.--Section 2315 of title 10, United States Code, is
amended by striking out ``Section 111'' and all that follows
through ``use of equipment or services if,'' and inserting in
lieu thereof the following: ``For the purposes of the
Information Technology Management Reform Act of 1996, the
term `national security systems' means those
telecommunications and information systems operated by the
Department of Defense, the functions, operation or use of
which''.

SEC. 5602. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

(a) References to Brooks Automatic Data Processing Act.--
Section 612 of title 28, United States Code, is amended--
(1) in subsection (f), by striking out ``section 111 of the
Federal Property and Administrative Services Act of 1949 (40
U.S.C. 759)'' and inserting in lieu thereof ``the provisions
of law, policies, and regulations applicable to executive
agencies under the Information Technology Management Reform
Act of 1996'';
(2) in subsection (g), by striking out ``sections 111 and
201 of the Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 481 and 759)'' and inserting in lieu
thereof ``section 201 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 481)'';
(3) by striking out subsection (l); and
(4) by redesignating subsection (m) as subsection (l).
(b) References to Automatic Data Processing.--Section 612
of title 28, United States Code, is further amended--
(1) in the heading, by striking out the second word and
inserting in lieu thereof ``Information Technology'';
(2) in subsection (a), by striking out ``Judiciary
Automation Fund'' and inserting in lieu thereof ``Judiciary
Information Technology Fund''; and
(3) by striking out ``automatic data processing'' and
inserting in lieu thereof ``information technology'' each
place it appears in subsections (a), (b), (c)(2), (e), (f),
and (h)(1).

SEC. 5603. AMENDMENT TO TITLE 31, UNITED STATES CODE.

Section 3552 of title 31, United States Code, is amended by
striking out the second sentence.

SEC. 5604. AMENDMENTS TO TITLE 38, UNITED STATES CODE.

Section 310 of title 38, United States Code, is amended to
read as follows:

``Sec. 310. Chief Information Officer

``(a) The Chief Information Officer for the Department is
designated pursuant to section 3506(a)(2) of title 44.
``(b) The Chief Information Officer performs the duties
provided for chief information officers of executive agencies
under chapter 35 of title 44 and the Information Technology
Management Reform Act of 1996.''.

SEC. 5605. PROVISIONS OF TITLE 44, UNITED STATES CODE,
RELATING TO PAPERWORK REDUCTION.

(a) Definition.--Section 3502 of title 44, United States
Code, is amended by striking out paragraph (9) and inserting
in lieu thereof the following:
``(9) the term `information technology' has the meaning
given that term in section 5002 of the Information Technology
Management Reform Act of 1996 but does not include national
security systems as defined in section 5142 of that Act;''.
(b) Development of Standards and Guidelines by National
Institute of Standards and Technology.--Section 3504(h)(1)(B)
of such title is amended by striking out ``section 111(d) of
the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 759(d))'' and inserting in lieu thereof ``section
5131 of the Information Technology Management Reform Act of
1996''.
(c) Compliance With Directives.--Section 3504(h)(2) of such
title is amended by striking out ``sections 110 and 111 of
the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 757 and 759)'' and inserting in lieu thereof ``the
Information Technology Management Reform Act of 1996 and
directives issued under section 110 of the Federal Property
and Administrative Services Act of 1949 (40 U.S.C. 757)''.
(d) Collection of Information.--Section 3507(j)(2) of such
title is amended by striking out ``90 days'' in the second
sentence and inserting in lieu thereof ``180 days''.

SEC. 5606. AMENDMENT TO TITLE 49, UNITED STATES CODE.

Section 40112(a) of title 49, United States Code, is
amended by striking out ``or a contract to purchase property
to which section 111 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 759)
applies''.

SEC. 5607. OTHER LAWS.

(a) National Institute of Standards and Technology Act.--
Section 20 of the National Institute of Standards and
Technology Act (15 U.S.C. 278g-3) is amended--
(1) in subsection (a)--
(A) by striking out ``section 3502(2) of title 44'' each
place it appears in paragraphs (2) and (3)(A) and inserting
in lieu thereof ``section 3502(9) of title 44''; and
(B) in paragraph (4), by striking out ``section 111(d) of
the Federal Property and Administrative Services Act of
1949'' and inserting in lieu thereof ``section 5131 of the
Information Technology Management Reform Act of 1996'';
(2) in subsection (b)--
(A) by striking out paragraph (2);
(B) in paragraph (3), by striking out ``section 111(d) of
the Federal Property and Administrative Services Act of
1949'' and inserting in lieu thereof ``section 5131 of the
Information Technology Management Reform Act of 1996''; and
(C) by redesignating paragraphs (3), (4), (5), and (6) as
paragraphs (2), (3), (4), and (5); and
(3) in subsection (d)--
(A) in paragraph (1)(B)(v), by striking out ``as defined''
and all that follows and inserting in lieu thereof a
semicolon; and
(B) in paragraph (2)--
(i) by striking out ``system'--'' and all that follows
through ``means'' in subparagraph (A) and inserting in lieu
thereof ``system' means''; and
(ii) by striking out ``; and'' at the end of subparagraph
(A) and all that follows through the end of subparagraph (B)
and inserting in lieu thereof a semicolon.
(b) Computer Security Act of 1987.--
(1) Purposes.--Section 2(b)(2) of the Computer Security Act
of 1987 (Public Law 100-235; 101 Stat. 1724) is amended by
striking out ``by amending section 111(d) of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C.
759(d))''.
(2) Security plan.--Section 6(b) of such Act (101 Stat.
1729; 40 U.S.C. 759 note) is amended--
(A) by striking out ``Within one year after the date of
enactment of this Act, each such agency shall, consistent
with the standards, guidelines, policies, and regulations
prescribed pursuant to section 111(d) of the Federal Property
and Administrative Services Act of 1949,'' and inserting in
lieu thereof ``Each such agency shall, consistent with the
standards, guidelines, policies, and regulations prescribed
pursuant to section 5131 of the Information Technology
Management Reform Act of 1996,''; and
(B) by striking out ``Copies'' and all that follows through
``Code.''.
(c) Federal Property and Administrative Services Act of
1949.--Section 303B(h) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253b(h)) is
amended by striking out paragraph (3).
(d) Office of Federal Procurement Policy Act.--Section
6(h)(1) of the Office of Federal Procurement Policy Act (41
U.S.C. 405(h)(1)) is amended by striking out ``of automatic
data processing and telecommunications equipment and services
or''.

[[Page H501]]

(e) National Energy Conservation Policy Act.--Section
801(b)(3) of the National Energy Conservation Policy Act (42
U.S.C. 8287(b)(3)) is amended by striking out the second
sentence.
(f) Central Intelligence Agency Act of 1949.--Section 3 of
the Central Intelligence Agency Act of 1949 (50 U.S.C. 403c)
is amended by striking out subsection (e).

SEC. 5608. CLERICAL AMENDMENTS.

(a) Federal Property and Administrative Services Act of
1949.--The table of contents in section 1(b) of the Federal
Property and Administrative Services Act of 1949 is amended
by striking out the item relating to section 111.
(b) Title 38, United States Code.--The table of sections at
the beginning of chapter 3 of title 38, United States Code,
is amended by striking out the item relating to section 310
and inserting in lieu thereof the following:
``310. Chief Information Officer.''.
TITLE LVII--EFFECTIVE DATE, SAVINGS PROVISIONS, AND RULES OF
CONSTRUCTION

SEC. 5701. EFFECTIVE DATE.

This division and the amendments made by this division
shall take effect 180 days after the date of the enactment of
this Act.

SEC. 5702. SAVINGS PROVISIONS.

(a) Regulations, Instruments, Rights, and Privileges.--All
rules, regulations, contracts, orders, determinations,
permits, certificates, licenses, grants, and privileges--
(1) which have been issued, made, granted, or allowed to
become effective by the Administrator of General Services or
the General Services Board of Contract Appeals, or by a court
of competent jurisdiction, in connection with an acquisition
activity carried out under the section 111 of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C.
759), and
(2) which are in effect on the effective date of this
division,

shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the Director or any other authorized
official, by a court of competent jurisdiction, or by
operation of law.
(b) Proceedings.--
(1) Proceedings generally.--This division and the
amendments made by this division shall not affect any
proceeding, including any proceeding involving a claim,
application, or protest in connection with an acquisition
activity carried out under section 111 of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C.
759) that is pending before the Administrator of General
Services or the General Services Board of Contract Appeals on
the effective date of this division.
(2) Orders.--Orders may be issued in any such proceeding,
appeals may be taken therefrom, and payments may be made
pursuant to such orders, as if this division had not been
enacted. An order issued in any such proceeding shall
continue in effect until modified, terminated, superseded, or
revoked in accordance with law by the Director or any other
authorized official, by a court of competent jurisdiction, or
by operation of law.
(3) Discontinuance or modification of proceedings not
prohibited.--Nothing in this subsection prohibits the
discontinuance or modification of any such proceeding under
the same terms and conditions and to the same extent that
such proceeding could have been discontinued or modified if
this Act had not been enacted.
(4) Other authority and prohibition.--Section 1558(a) of
title 31, United States Code, and the second sentence of
section 3552 of such title shall continue to apply with
respect to a protest process in accordance with this
subsection.
(5) Regulations for transfer of proceedings.--The Director
may prescribe regulations providing for the orderly transfer
of proceedings continued under paragraph (1).
(c) Standards and Guidelines for Federal Computer
Systems.--Standards and guidelines that are in effect for
Federal computer systems under section 111(d) of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C.
759(d)) on the day before the effective date of this division
shall remain in effect until modified, terminated,
superseded, revoked, or disapproved under the authority of
section 5131 of this Act.

SEC. 5703. RULES OF CONSTRUCTION.

(a) Relationship to Title 44, United States Code.--Nothing
in this division shall be construed to amend, modify, or
supersede any provision of title 44, United States Code,
other than chapter 35 of such title.
(b) Relationship to Computer Security Act of 1987.--Nothing
in this division shall affect the limitations on authority
that is provided for in the administration of the Computer
Security Act of 1987 (Public Law 100-235) and the amendments
made by such Act.
And the House agree to the same.
That the Senate recede from its disagreement to the
amendment of the House to the title of the bill and agree to
the same with an amendment as follows:
In lieu of the House amendment, amend the title so as to
read: ``An Act to authorize appropriations for fiscal year
1996 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, to reform acquisition
laws and information technology management of the Federal
Government, and for other purposes.''.
And the House agree to the same.
Floyd Spence,
Bob Stump,
Duncan Hunter,
Herbert H. Bateman,
Curt Weldon,
G.V. Montgomery,
John M. Spratt, Jr.,
Managers on the Part of the House.

Strom Thurmond,
John Warner,
Bill Cohen,
Trent Lott,
Sam Nunn,
Managers on the Part of the Senate.

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

The managers on the part of the House and the Senate at the
conference on the disagreeing votes of the two Houses on the
amendments of the House to the bill (S. 1124) to authorize
appropriations for fiscal year 1996 for military activities
of the Department of Defense, to prescribe personnel
strengths for such fiscal year for the Armed Forces, and for
other purposes, submit the following joint statement to the
House and the Senate in explanation of the effect of the
action agreed upon by the managers and recommended in the
accompanying conference report:
The House amendment to the text of the bill struck all of
the Senate bill after the enacting clause and inserted a
substitute text.
The Senate recedes from its disagreement to the amendment
of the House with an amendment that is a substitute for the
Senate bill and the House amendment. The differences between
the Senate bill, the House amendment, and the substitute
agreed to in conference are noted below, except for clerical
corrections, conforming changes made necessary by agreements
reached by the conferees, and minor drafting and clerical
changes.
All references in this joint statement to provisions of the
House bill refer to the provisions of H.R. 1530 (The National
Defense Authorization Act for Fiscal Year 1996), as passed by
the House on June 15, 1995. All references to provisions of
the Senate amendment refer to the Senate amendment to the
text of H.R. 1530, as passed by the Senate on September 6,
1995.
The conference report on H.R. 1530 is set forth in House
Report 104-406. The President vetoed H.R. 1530 on December
28, 1995.
In those cases in which the conference agreement requires
the submission of a report to Congress or a committee of
Congress, the report shall be submitted not later than the
later of the date established in the Act or the statement of
managers language for submission of the report or the date
that is 45 days after the date of the enactment of this Act.
The reason for this extension is that, while the conferees
expect that reports will be submitted in a timely fashion,
they recognize that the circumstances associated with this
legislation may in some cases make compliance with deadlines
impractical. The conferees intend that this authority be used
sparingly and only in those few cases where an extension in
filing the report is essential.

Summary Statement of Conference Action

The conferees recommend authorizations for the Department
of Defense for procurement, research and development, test
and evaluation, operation and maintenance, working capital
funds, military construction and family housing, weapons
programs of the Department of Energy, and civil defense that
have a budget authority implication of $264.7 billion.

Summary Table of Authorizations

The defense authorization act provides authorizations for
appropriations but does not generally provide budget
authority. Budget authority is generally provided in
appropriation acts.
In order to relate the conference recommendations to the
Budget Resolution, matters in addition to the dollar
authorizations contained in this bill must be taken into
account. A number of programs in the defense function are
authorized permanently or, in certain instances, authorized
in other annual legislation. In addition, this authorization
bill would establish personnel levels and include a number of
legislative provisions affecting military compensation.
The following table summarizes authorizations included in
the bill in fiscal year 1996 and, in addition, summarizes the
implications of the conference action for the budget totals
for national defense (budget function 050).

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Congressional defense committees
The term ``congressional defense committees'' is often used
in this statement of the managers. It means the Defense
Authorization and Appropriations Committees of the Senate and
House of Representatives.

DIVISION A: DEPARTMENT OF DEFENSE AUTHORIZATIONS

Title I--Procurement

Overview
The budget request for fiscal year 1996 contained an
authorization of $39,697.8 million for procurement in the
Department of Defense. The House bill would authorize
$44,117.0 million. The Senate amendment would authorize
$45,043.8 million. The conferees recommended an authorization
of $44,878.1 million. Unless noted explicitly in the
statement of managers, all changes are made without
prejudice.

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Overview
The budget request for fiscal year 1996 contained an
authorization of $1,223.1 million for Aircraft Procurement,
Army in the Department of Defense. The House bill would
authorize $1,423.1 million. The Senate amendment would
authorize $1,396.5 million. The conferees recommended an
authorization of $1,558.8 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

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Airborne reconnaissance low
The budget request included $18.4 million to procure one
additional aircraft.
The House bill and the Senate amendment would approve the
budget request.
The conferees agree to authorize the budget request and
express a continued strong support for the Airborne
Reconnaissance Low (ARL) program, to include the procurement
of a total of 9 aircraft as soon as possible.
The conferees expect the Department to evaluate the
advantages of linking the airborne workstations of the ARL to
an Unmanned Aerial Vehicle, to provide for airborne analysis
and assured dissemination of information.
UH-60 Black Hawk helicopter
The budget request included $526.0 million for the
procurement of 60 Black Hawk helicopters in the final year of
a five-year multiyear procurement. No funds were requested
for advance procurement.
The House bill would approve the budget request and add
$75.0 million for advance procurement.
The Senate amendment would decrease procurement funds to
$475.8 million to procure 50 helicopters, and would not
provide funds for advance procurement.
The conferees agree to authorize $526.0 million for the
procurement of 60 Black Hawk helicopters and $70.0 million
for advance procurement. The conferees also agree to provide
authority for multiyear procurement for the Black Hawk
helicopter program.
Overview
The budget request for fiscal year 1996 contained an
authorization of $676.4 million for Missile Procurement, Army
in the Department of Defense. The House bill would authorize
$862.8 million. The Senate amendment would authorize $894.4
million. The conferees recommended an authorization of $865.6
million. Unless noted explicitly in the statement of
managers, all changes are made without prejudice.

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Hellfire missile
The budget request included $197.5 million to procure 352
Longbow Hellfire missiles and $12.0 million for post-
production support.
The House bill and the Senate amendment would provide an
additional $40.0 million, which when combined with $12.0
million of post-production funds, would enable the Army to
buy 750 Hellfire II missiles.
The conferees agree to provide an additional $37.2 million
for the procurement of 750 Hellfire II missiles.
Javelin medium anti-tank weapon
The budget request included $171.4 million to procure 557
Javelin missiles.
The House bill and the Senate amendment would authorize an
increase of $39.0 million for an additional 453 Javelin
missiles.
The conferees agree to authorize an additional $35.5
million, which when added to the budget request of $171.4
million, will procure a total of 1,010 Javelin missiles.
TOW missile
The budget request included $7.4 million for plant closure
and production support of prior year TOW missile deliveries.
No funds were requested for additional missile production.
The House bill and the Senate amendment would authorize an
increase of $20.0 million for procurement of 1,000 TOW 2B
missiles.
The conferees agree to authorize an increase of $5.0
million for procurement of 500 TOW 2B missiles.
Multiple launch rocket system
The budget request included $48.2 million for annual
support and fielding of the Army's Multiple Launch Rocket
System (MLRS), but this amount did not include funding for
procurement of any new launchers.
The House bill would authorize an increase of $16.4 million
to procure MLRS launchers to complete equipping a National
Guard MLRS battalion, for which funds were authorized in
fiscal year 1995.
The Senate amendment would authorize an increase of $16.4
million to complete fielding the same National Guard
battalion described in the House bill. In addition, the
Senate amendment would authorize an increase of $48.0 million
to recondition sufficient MLRS launchers and ancillary
equipment for one additional National Guard MLRS battalion.
The conferees agree to authorize $98.6 million to provide
sufficient reconditioned MLRS launchers and ancillary
equipment to complete the fielding of the National Guard
battalion authorized in fiscal year 1995, and to fully equip
another National Guard battalion in fiscal year 1996.
Overview
The budget request for fiscal year 1996 contained an
authorization of $1,298.9 million for Weapons and Tracked
Combat Vehicles Procurement, Army in the Department of
Defense. The House bill would authorize $1,359.7 million. The
Senate amendment would authorize $1,547.9 million. The
conferees recommended an authorization of $1,652.7 million.
Unless noted explicitly in the statement of managers, all
changes are made without prejudice.

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Direct support electronic system test sets
The budget request included $1.5 million for calibration of
the direct support electronic system test sets (DSESTS).
The House bill included no additional funding for DSESTS.
The Senate amendment would authorize an increase of $15.0
million for additional procurement of DSESTS for M1 Abrams
series tanks and Bradley infantry fighting vehicles.
The conferees agree to authorize an increase of $15.0
million for DSESTS for both procurement and research and
development, as indicated below:

Procurement: Million
M1 Abrams tank series............................................$3.0
Armored Gun System................................................6.0
Research & Development:
PE23735A Abrams Block Improvements................................4.0
PE23735A Armored Gun System.......................................2.0
M113 Carrier modifications
The budget request included $48.1 million for modification
of M113 personnel carriers.
The House bill and the Senate amendment would approve the
budget request.
The conferees agree to authorize an increase of $1.6
million for an additional 12 carrier modification upgrades to
be used as opposing force vehicles at the National Training
Center.
M109A6 Paladin 155mm howitzer, self-propelled
The budget request included $220.2 million for retrofitting
215 M109A6 Paladin howitzer systems.
The House bill and the Senate amendment would approve the
budget request.
The conferees agree to authorize an increase of $81.8
million to procure an additional 48 Paladin retrofits to
equip two additional National Guard battalions and to
retrofit the fire control processor for 340 systems.
Improved Recovery Vehicle
The budget request included $23.5 million to procure nine
M88A1E1 Improved Recovery Vehicles (IRV).
The House bill would approve the budget request.
The Senate amendment would authorize an increase of $33.9
million to procure an additional 12 IRVs.
The House recedes.
M1 Abrams tank upgrade program
The budget request included $473.8 million for 100 M1A2
tank upgrades for the Army.
The House bill would approve the budget request.
The Senate amendment would authorize an increase of $110.0
million for 24 additional M1A2 tank upgrades and, in
accordance with the Statement of Managers accompanying the
National Defense Authorization Act of Fiscal Year 1995 (H.
Rept. 103-701), would direct the Army to transfer 24 M1A1
tanks to the Marine Corps Reserve.
The House recedes.
The conferees continue to support a multiyear procurement
for M1A2 tank upgrades, as authorized in the National Defense
Authorization Act of Fiscal Year 1995. However, the conferees
agree with guidance and direction to the Army Acquisition
Executive (AAE) regarding the need to maintain an appropriate
balance between the heavy and medium portions of the tracked
combat vehicle fleets, included in the Senate report (S.
Rept. 104-112). The conferees expect the AAE to comply with
that guidance and direction.
Mark-19 universal mounting bracket
The budget request included $1.4 million for program
modifications under $2.0 million.
The Senate amendment would recommend an increase of $1.5
million to begin initial production of a nondevelopmental
universal bracket.
The House bill would authorize the budget request.
The Senate recedes.
The conferees encourage the Army to reprogram funds to
provide $1.5 million to initiate production of a
nondevelopmental universal mounting bracket for the Mark-19
automatic grenade launcher.
The conferees provide $.5 million in PE 64802A to type
classify this bracket.
Overview
The budget request for fiscal year 1996 contained an
authorization of $795.0 million for Ammunition Procurement,
Army in the Department of Defense. The House bill would
authorize $1,062.7 million. The Senate amendment would
authorize $1,120.1 million. The conferees recommended an
authorization of $1,093.9 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

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Overview
The budget request for fiscal year 1996 contained an
authorization of $2,256.6 million for Other Procurement, Army
in the Department of Defense. The House bill would authorize
$2,545.6 million. The Senate amendment would authorize
$2,811.1 million. The conferees recommended an authorization
of $2,763.4 million. Unless noted explicitly in the statement
of managers, all changes are made without prejudice.

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High mobility multipurpose wheeled vehicle
The budget request included $57.7 million for 546 high
mobility multipurpose wheeled vehicles (HMMWVs).
The House bill would authorize an increase of $39.0 million
to procure approximately 700 additional HMMWVs.
The Senate amendment would authorize an increase of $72.0
million to procure approximately 1300 additional HMMWVs.
The House recedes.
The conferees agree that additional HMMWVs are required for
both the Army and the Marine Corps, and expect the military
services to include in future budget requests adequate funds
to procure sufficient HMMWVs to meet validated service
requirements and to meet minimum annual required production
rates necessary to sustain the essential elements of the
HMMWV industrial base.
Family of heavy tactical vehicles
The budget request included $0.6 million for the family of
heavy tactical vehicles (FHTV).
The House bill would authorize an increase of $100.0
million for the FHTV program.
The Senate amendment would authorize an increase of $125.0
million for the FHTV program.
The House recedes.
The conferees agree to authorize an increase to the budget
request of $125.0 million to procure the heavy tactical
vehicles, as indicated below:

------------------------------------------------------------------------
Dollars
(in Quantity
millions)
------------------------------------------------------------------------
Heavy equipment transporter....................... $40.0 83
Heavy expanded mobility tactical transporter...... 33.0 115
Palletized loading system......................... 52.0 147
------------------------------------------------------------------------

Medium truck extended service program
The budget request did not include funds for the medium
truck extended service program (ESP).
The House bill would not authorize funds for medium truck
ESP.
The Senate amendment would authorize $30.0 million for
medium truck ESP.
The conferees agree to authorize $20.0 million for medium
truck ESP. The conferees express their concern regarding the
possibility of initiating multiple truck remanufacture
programs, thereby creating excess capacity in the industry.
The conferees prefer that maximum use be made of the medium
truck ESP currently underway, that separate, additional
procurements be kept to a minimum to avoid industrial
overcapacity, and that, for future procurements,
consideration be given to reliable manufacturers with
demonstrated capabilities to produce military trucks.
GUARDRAIL tactical information broadcast service
The budget request included $48.9 million for the GUARDRAIL
common sensor program.
Both the House bill and the Senate amendment would
authorize funding at the requested level.
The conferees have determined that there is a need for
GUARDRAIL aircraft to be equipped with improved intelligence
data dissemination capability and interoperability with other
intelligence data producers. Therefore, the conferees agree
to authorize an increase of $9.0 million to the budget
request for procurement and integration of tactical
information broadcast service to provide this capability for
existing GUARDRAIL aircraft.
Nonsystem training devices
The budget request included $71.6 million for nonsystem
training devices.
The House bill and the Senate amendment authorized the
request.
The conferees are concerned that the Army is currently
training firefighters using fossil-fueled techniques that are
not only hazardous to the trainees but, in some cases, in
violation of environmental regulations. Moreover, the
conferees are aware that there are computer-controlled
natural gas/propane firefighter training systems, currently
used by other services, that provide safe training for
individuals and minimize destruction to the environment.
Accordingly, the conferees authorize $4.5 million to procure
an initial set of these systems.
Further, the conferees believe that the Army should develop
a plan to replace current firefighting training sites in
regions where multiple commands can take advantage of a
single site.
Overview
The budget request for fiscal year 1996 contained an
authorization of $3,886.5 million for Aircraft Procurement,
Navy in the Department of Defense. The House bill would
authorize $4,106.5 million. The Senate amendment would
authorize $4,916.6 million. The conferees recommended an
authorization of $4,572.4 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

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AV-8B remanufacture
The budget request included $148.2 million for the
remanufacture of four Marine Corps AV-8B aircraft.
The House bill would add $160.0 million for the
remanufacture of eight additional aircraft.
The Senate amendment would authorize an additional $100.0
million for the remanufacture of four more aircraft.
The conferees agree to authorize a total of $229.4 million,
$81.3 million above the budget request, for the remanufacture
of four additional aircraft.
Electronic warfare
The budget request included no funds to either expand the
Navy's fleet of EA-6B Block 89 aircraft to accommodate the
retirement of the EF-111 jammer aircraft or to improve the
capabilities of the existing Block 89 EA-6B fleet.
The House bill would approve the budget request.
The Senate amendment would authorize $216.0 million to
modernize airborne electronic warfare (EW) capabilities of
the EA-6B Block 89 aircraft and to expand the number of Block
89 aircraft by 20.
The conferees agree that modernization of the Department's
tactical electronic warfare aircraft fleet is a priority item
of special interest. Accordingly, the conferees agree to
authorize $165.0 million to initiate procurement of EA-6B
modifications, as set forth below:
(1) $100.0 million to modernize up to 20 older EA-6B Block
82 aircraft to the newer Block 89 configuration to offset EF-
111 retirements;
(2) $40.0 million to procure 60 band 9/10 transmitters; and
(3) $25.0 million for 30 USQ-113 enhanced radio
countermeasure sets.
The conferees also authorize an increase of $10.0 million
to Navy EW development (PE 64270N), to develop a low-cost,
reactive jamming capability for the EA-6B. The conferees are
especially interested in the Navy's completion of an
affordable upgrade to the EA-6B reactive processor
capability.
The conferees note the inconsistent nature of the Navy's
actions regarding airborne tactical EW in recent years and
are deeply concerned with the Navy's vacillating commitment
and support for meaningful upgrades to the EA-6B aircraft.
Accordingly, the Secretary of the Navy is directed to:
(1) initiate the EA-6B modifications identified above.
(2) provide the congressional defense committees with the
following:
(a) a program and budget plan for completing the directed
modifications.
(b) the Joint Tactical Airborne EW Study (JTAEWS).
In addition, the conferees agree that the Secretary of the
Navy shall not obligate more than 75 percent of funds
appropriated for procurement of the F/A-18C/D for fiscal year
1996 until he has accomplished the actions specified above.
F-14 modifications
The budget request included $59.0 million for F-14
modifications. This amount did not include any funds for a
forward-looking infrared (FLIR)/laser designator system for
the F-14. The budget request included $25.4 million in
research and development funds for a precision strike
upgrade, an effort to integrate the joint direct attack
munition (JDAM) into the F-14.
The House bill would approve the budget request for F-14
modifications.
After completion of the House bill, the Navy informed the
Senate that the requirements validation process had
documented an operational requirement for a FLIR/laser
designator system for the F-14, in lieu of the JDAM
integration. The Senate considered this requirement to be a
high priority for carrier operations. Therefore, the Senate
amendment would authorize an increase of $17.1 million for F-
14 aircraft modifications in fiscal year 1996. This action
was taken with the understanding that the Department of
Defense would provide funding for the system in future budget
requests.
The conferees agree to provide $101.5 million for F-14
modifications, with an increase of $42.5 million provided for
the FLIR/laser designator effort. The conferees also agree to
reduce the F-14 research and development request by $25.4
million.
Additionally, the conferees agree to invite the Navy to
reprogram funds originally authorized for JDAM integration
into the FLIR/laser designator procurement effort, to
expedite meeting the need for improving F-14 strike
capability.
Overview
The budget request for fiscal year 1996 contained an
authorization of $1,787.1 million for Weapons Procurement,
Navy in the Department of Defense. The House bill would
authorize $1,626.4 million. The Senate amendment would
authorize $1,771.4 million. The conferees recommended an
authorization of $1,659.8 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

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Overview
The budget request for fiscal year 1996 contained an
authorization of $5,051.9 million for Shipbuilding and
Conversion Procurement, Navy in the Department of Defense.
The House bill would authorize $6,227.9 million. The Senate
amendment would authorize $7,111.9 million. The conferees
recommended an authorization of $6,643.9 million. Unless
noted explicitly in the statement of managers, all changes
are made without prejudice.

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Overview
The budget request for fiscal year 1996 contained no
authorization for Ammunition Procurement, Navy and Marine
Corps in the Department of Defense. The House bill would
authorize $461.8 million. The Senate amendment contained no
authorization. The conferees recommended an authorization of
$430.1 million. Unless noted explicitly in the statement of
managers, all changes are made without prejudice.

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Overview
The budget request for fiscal year 1996 contained an
authorization of $2,396.1 million for Other Procurement, Navy
in the Department of Defense. The House bill would authorize
$2,461.5 million. The Senate amendment would authorize
$2,471.9 million. The conferees recommended an authorization
of $2,414.8 million. Unless noted explicitly in the statement
of managers, all changes are made without prejudice.

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Submarine navigation sets
The budget request included $4.1 million for the
electrically suspended gyro navigator (ESGN), the navigation
system currently installed on Navy submarines. It also
included $17.7 million for other navigation equipment.
The House bill would reduce ESGN funding by $4.1 million
and increase funding for other navigation equipment by $10.0
million to purchase and install MK-49 ring laser gyro (RLG)
navigators on Navy submarines.
The Senate amendment would reduce ESGN funding by $2.5
million, the amount budgeted for ESGN reliability
modifications. It would also increase funding for other
navigation equipment by $10.0 million to purchase and install
MK-49 RLG navigators on Navy submarines.
The Senate recedes.
AN/BPS-16 submarine radar
The budget request included $0.5 million for ship radar
support .
The House bill would add $9.0 million for procurement of
AN/BPS-16 submarine radar systems because of a concern about
the reliability and operational suitability of the existing
AN/BPS-15 submarine navigation radar.
The Senate amendment would authorize the budget request.
The conferees are aware that there is a commercial off-the-
shelf (COTS) variant of the AN/BPS-16 that could be procured
and installed at a substantially lower cost than the AN/BPS-
16 built to military specifications. The conferees are also
aware that the reliability and maintenance challenges
associated with the existing AN/BPS-15 have induced many Navy
submarine crews to procure inexpensive commercial navigation
radars with limited capability.
Based on these considerations, the conferees agree to
authorize an increase of $9.0 million for the procurement and
installation of AN/BPS-16 submarine radar sets. The conferees
encourage the Navy to take advantage of the new COTS variant
of the AN/BPS-16 to achieve the maximum benefit from this
additional funding.
Afloat planning system
The conferees have fully supported the Tomahawk cruise
missile program and the associated support systems necessary
for employment of Tomahawk for precision strike missions. The
conferees note that the Tomahawk afloat planning system (APS)
complements the Tomahawk mission planning system, located at
the shore-based mission planning centers, and provides afloat
battle group and battle force commanders or deployed joint
staffs with an organic capability to plan for the tactical
employment of the conventional Tomahawk land attack missile
(TLAM). APS is also an integral part of the Joint Service
Imagery Processing System--Navy (JSIPS-N) and Challenge
Athena systems. These systems support Tomahawk strike
planning, but can also provide mission planning support for
other precision guided munitions.
The conferees encourage the Department of Defense to:
(1) continue support and funding for APS; and
(2) consider extending APS's targeting and mission planning
capabilities to other tactical command echelons, in order to
meet the expanding requirement for tactical utilization of
the Tomahawk system and improve its responsiveness to the
demands of land battle.
Overview
The budget request for fiscal year 1996 contained an
authorization of $474.1 million for Marine Corps Procurement,
Navy in the Department of Defense. The House bill would
authorize $399.2 million. The Senate amendment would
authorize $683.4 million. The conferees recommended an
authorization of $458.9 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

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Commander's Tactical Terminal
The budget request included no funding for USMC procurement
of Commander's Tactical Terminal (CTT) radios.
Neither the House bill nor the Senate amendment authorized
additional funding for CTT radios.
The conferees note that the Department's integrated
(intelligence) broadcast service plan included migration to
an interoperable family of transceivers known as the Joint
Tactical Terminal. The conferees have been informed that
Marine Corps procurement of CTTs will play a vital role in
this plan, and therefore authorize an increase of $12.5
million for this purpose.
Marine Corps intelligence support equipment
The budget request included no funding for Marine Corps
procurement of Joint Surveillance and Target Attack Radar
System (JSTARS) ground support module.
Neither the House bill nor the Senate amendment included
additional funds for this purpose.
The conferees believe the Marine Corps should have more
responsibility over its own procurement actions, and
therefore agree to authorize an increase of $16.5 million for
Marine procurement of two JSTARS ground support modules.
Light reconnaissance/strike vehicles
The budget request did not include funds for procurement of
any light reconnaissance/strike vehicles (LRV/LSV).
The House bill would add $2.0 million to buy LRVs for the
Marine Corps and $6.0 million to buy LSVs for the special
operations forces.
The conferees agree to authorize $6.0 million for LSVs for
the special operations forces.
The conferees understand that the Marine Corps has
completed a mission needs statement (MNS) for an LRV. The MNS
calls for fielding an LRV with the Fleet Marine Forces by
fiscal year 1995. However, the Marine Corps has neither
established a formal requirement nor budgeted any resources
against a possible requirement.
Therefore, the conferees direct the Secretary of the Navy
to report to the congressional defense committees on whether
the Marine Corps will translate the MNS into an operational
requirement and the risks the Fleet Marine Force will incur
if an LRV is not procured. The conferees expect the Secretary
to submit this report by February 28, 1996.
Overview
The budget request for fiscal year 1996 contained an
authorization of $6,183.9 million for Aircraft Procurement,
Air Force in the Department of Defense. The House bill would
authorize $7,032.0 million. The Senate amendment would
authorize $6,318.6 million. The conferees recommended an
authorization of $7,349.8 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

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Air Force fighter aircraft data link
The budget request included $79.5 million for F-15
modifications.
The House bill would authorize the requested amount based
on assurances from the Department of Defense that Air Force
efforts to procure a tactical information data link for a
portion of the F-15 fleet would be conducted within the scope
of the Department's multifunction information distribution
system (MIDS) program.
The Senate amendment would authorize the budget request.
The Senate report (S. Rept. 104-112) expressed support for
the Air Force's efforts to equip its fighter aircraft with
``Link 16'' data link capability, but questioned the Air
Force's decision to pursue this capability for only a portion
of the F-15 fleet. The Senate report also recommended that
the Department continue MIDS acquisition and stated that it
would not support any Air Force effort to start a new
program, redundant to MIDS, to meet similar requirements.
The conferees note that the Under Secretary of Defense for
Acquisition and Technology has terminated the F-15 data link
procurement and that the Air Force now intends to pursue a
MIDS variant data link to meet its requirements. The
Department has informed the conferees that this program is to
be a competitive solicitation that will require adherence to
the MIDS architecture, MIDS software modularity, and MIDS
hardware modulatory as a design objective, and, for the F-15,
reduced hardware and software functionality to reduce costs.
The conferees agree to authorize $78.3 million for F-15
modifications. The conferees direct the Under Secretary of
Defense for Acquisition and Technology to ensure that the
Department uses a competitive acquisition strategy for
fighter data link procurement. The strategy should promote
full opportunity for U.S. companies to compete within the
competitive solicitation outlined by the Under Secretary.
Defense support program procurement
The budget request included $102.9 million for Defense
Support Program (DSP) procurement.
The Senate amendment would authorize $67.0 million, a
reduction of $35.9 million to the budget request.
The House bill would authorize the budget request.
The House recedes. The conferees are aware that $35.9
million in fiscal year 1995 funds are excess and subject to
consideration for reprogramming for non-DSP purposes.
Therefore, the conferees agree to reduce the fiscal year 1996
DSP procurement budget by $35.9 million, leaving $67.0
million. The conferees direct the Air Force to use the excess
fiscal year 1995 funds currently identified as a source on
the fiscal year 1995 omnibus reprogramming request to fulfill
fiscal year 1996 DSP requirements. Given that the fiscal year
1995 DSP procurement source has been denied as part of this
year's omnibus reprogramming, the conferees direct that the
full amount be restored to DSP.
RC-135 re-engining
The budget request included no funding for the Defense
Airborne Reconnaissance Program (DARP) modifications line (P-
1, line 57) in the Aircraft Procurement, Air Force account.
The House bill would authorize an increase of $37.0 million
for modification of an existing C-135 aircraft to the RC-135
RIVET JOINT configuration.
The Senate amendment would authorize an increase of $48.0
million for re-engining of two existing RIVET JOINT aircraft.
The Senate amendment would also authorize an increase of
$31.5 million in PE 64268F for non-recurring integration
activity to facilitate an affordable program for converting
two retired EC-135 aircraft to the RIVET JOINT configuration.

engines and installation

The conferees concur with the cost effectiveness and
increase in operational effectiveness that could be provided
by re-engining the existing fleet of RIVET JOINT aircraft and
agree to authorize an increase of $48.0 million to procure
and install re-engining kits for two existing RIVET JOINT
aircraft.
The conferees note that the theater Commanders-in-Chief
(CINCs) have addressed additional RIVET JOINT aircraft as one
of their highest intelligence priorities. The need for
additional RIVET JOINT aircraft is further reinforced by the
extremely high operational tempo currently experienced by
this reconnaissance asset. The conferees support the theater
CINCs' requirements for additional RIVET JOINT aircraft and
strongly urge the Department to seek reprogramming authority
to modify other existing C-135 assets to the RC-135
configuration.

sr-71

The conferees agree to provide an additional $5.0 million
for costs associated with the refurbishment of SR-71
aircraft.

engine component improvement program

The conferees agree to authorize $133.2 million for the
engine component improvement program, an increase of $29.5
million, consisting of two adjustments: (1) an additional
$31.5 million for the integration activity described in the
Senate report (S. Rept. 104-112); and (2) a reduction of the
$2.0 million requested for the B-2 engine.
Overview
The budget request for fiscal year 1996 contained an
authorization of $3,647.7 million for Missile Procurement,
Air Force in the Department of Defense. The House bill would
authorize $3,430.1 million. The Senate amendment would
authorize $3,627.5 million. The conferees recommended an
authorization of $2,938.9 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

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Overview
The budget request for fiscal year 1996 contained no
authorization for Ammunition Procurement, Air Force in the
Department of Defense. The House bill would authorize $321.3
million. The Senate amendment contained no authorization. The
conferees recommended an authorization of $343.8 million.
Unless noted explicitly in the statement of managers, all
changes are made without prejudice.

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Overview
The budget request for fiscal year 1996 contained an
authorization of $6,804.7 million for Other Procurement, Air
Force in the Department of Defense. The House bill would
authorize $6,784.8 million. The Senate amendment would
authorize $6,516.0 million. The conferees recommended an
authorization of $6,268.4 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

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Overview
The budget request for fiscal year 1996 contained an
authorization of $2,179.9 million for Defense-wide
Procurement in the Department of Defense. The House bill
would authorize $2,205.9 million. The Senate amendment would
authorize $2,118.3 million. The conferees recommended an
authorization of $2,124.4 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

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Defense airborne reconnaissance program procurement
The budget request included $179.3 million in procurement
for the Defense airborne reconnaissance program (DARP).
The House bill would approve the budget request.
The Senate amendment would increase the requested amount by
$4.5 million, and would direct the Department to change the
priorities of some program elements. The conferees agree to
an authorization of $161.6 million, a reduction of $17.7
million from the budget request.

joint tactical uav

The conferees agree to authorize a total of $42.4 million
for the joint tactical UAV (JT-UAV), a reduction of $17.7
million from the budget request.
The conferees are particularly concerned about the
continuing problems with the Hunter UAV in the JT-UAV
program. Therefore, the conferees direct that none of the
funds appropriated for fiscal year 1996 be used to procure
production Hunter systems or additional low-rate initial
production units, beyond those already ordered, until the
Secretary of Defense provides to the Congressional defense
committees the results of the Defense Acquisition Board (DAB)
review of the Hunter program.

pioneer uav

Of the funds authorized and appropriated for defense-wide
procurement, Defense Airborne Reconnaissance Programs (DARP),
the conferees direct that the Department use $4.5 million to
equip nine Pioneer UAV systems with the common automatic
landing and recovery system (CARLS).
The conferees note the Department's continuing failure to
equip UAVs with the CARLS system. The conferees are concerned
with this result, particularly since the Department agrees
that CARLS installation on UAVs in general, and Pioneer in
particular, would reduce landing accidents and associated
losses.
Automated document conversion system
The budget request did not include any additional funds for
the automated document conversion system (ADCS). This is a
program for converting the Department of Defense's
engineering drawings from hard copy to electronic format.
The House bill would authorize $20.0 million for this
purpose.
The Senate amendment would approve the budget request.
The conferees are concerned with the lack of progress by
the Department toward achieving major cost savings through
the adoption of automated document conversion technology. The
conferees are encouraged, however, that the Department has
recently acknowledged such savings and has produced a roadmap
to realize these savings by changing from raster to vector
conversion. The conferees also understand this plan brings an
upgrade and expansion of UNIX-based systems and will test
several personal computer (PC)-based systems.
However, the conferees are concerned with the Department's
plan for using $10.0 million of these funds for ``bulk''
conversion purposes, since these funds were specifically
appropriated for the purchase of ADCS equipment. The
conferees are concerned that there may be a greater
requirement for ADCS software and equipment than the
Department currently has planned and that some or all of the
funds planned for bulk conversion may be needed for software
and equipment. Should the results of the Department's ongoing
conversion survey confirm that additional software and
equipment is needed, the conferees feel that the Department
should address first the needs of UNIX-based engineering
systems as the UNIX-based system has undergone extensive
testing per Congressional direction. The conferees direct
that the Secretary of Defense provide a report to the
congressional defense committees by March 29, 1996, on the
results of the PC-based system testing.
Overview
The budget request for fiscal year 1996 contained no
authorization for National Guard and Reserve Procurement in
the Department of Defense. The House bill would authorize
$770.0 million. The Senate amendment would authorize $777.4
million. The conferees recommended an authorization of $777.0
million. Unless noted explicitly in the statement of
managers, all changes are made without prejudice.

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Overview
The budget request for fiscal year 1996 contained an
authorization of $746.7 million for Chemical Agent and
Munitions Destruction, Army in the Department of Defense. The
House bill would authorize $746.7 million. The Senate
amendment would authorize $671.7 million. The conferees
recommended an authorization of $672.3 million. Unless noted
explicitly in the statement of managers, all changes are made
without prejudice.

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[[Page H571]]

items of special interest

Aerial targets
The budget request included $68.6 million for aerial
targets.
The House bill and the Senate amendment authorized the
request.
The conferees understand the Navy's current acquisition
strategy for subscale subsonic aerial targets is to procure
only the BQM-74E. However, the conferees understand the
contractor may have taken some recent cost reduction
initiatives on the BQM-34S subscale target. Therefore, the
conferees believe that the Navy's non-competitive procurement
of the BQM-74E may not provide the service with the best
value target. Accordingly, the conferees urge the Navy to
reassess its acquisition strategy for this target and conduct
a competition based upon meeting a performance specification.
The conferees believe that such a competition could result in
buying a target that truly represents the best value to the
Navy.
AN/ALE-47
The conferees are concerned that the current Air Force
acquisition strategy for the follow-on production of lots IV
through VII of the AN/ALE-47 Countermeasure Dispenser System
may involve significant and unnecessary risks for the
program. The conferees direct the Air Force to delay any
procurement action regarding lots IV through VII of the AN/
ALE-47 until 14 days after the date on which the Air Force
has provided the congressional defense committees with a
report that assesses the cost and acquisition strategy
related to the introduction of new suppliers for the system.
Engineer construction equipment
The conferees are aware of the significant contribution
National Guard engineer construction units have made to
securing the southwest border. The construction efforts of
the National Guard have been of singular assistance in
providing for increased safety for U.S. Border Patrol agents
and in facilitating the U.S. Border Patrol efforts to counter
illegal drugs and illegal immigration along the southwest
border. The conferees agree that sufficient funds should be
allocated by the National Guard to purchase appropriate
loaders, dozers, and road-grading equipment for use by
National Guard engineer construction units that rotate to
continue construction on projects along the United States-
Mexican border.
The conferees have indicated elsewhere in this statement of
managers, that the Department of Defense should, through
normal reprogramming procedures, use available funds provided
for counterdrug activities to continue construction to extend
the fence constructed by the National Guard on the southwest
border.
LPD-17 radio communications systems engineering support
The conferees note that, as a result of the base
realignment and closure decisions, the Navy has reorganized
and consolidated its radio communications systems (RCS)
engineering, production, testing, integration, and training
support activities. In assigning RCS engineering support
workload for the LPD-17 class of ships, the conferees expect
that the Navy will assign such workload to the most
appropriate facility.
SH-60 modifications
The conferees understand that there are at least 60 AN/AQS-
13F dipping sonars currently installed in the Navy's SH-60F
helicopters that will not be replaced under the SH-60R
program. These sonars could be upgraded to meet current
shallow water operational requirements based on a
modification already developed through the FMS program.
The conferees direct the Secretary of the Navy to evaluate
the cost effectiveness of a modification program for the AQS-
13F dipping sonars that will not be replaced in conjunction
with the SH-60R program, and report the results to the
congressional defense committees by March 15, 1996.

legislative provisions

legislative provisions adopted

Subtitle A--Authorization of Appropriations

Subtitle B--Army Programs

Procurement of OH-58D Armed Kiowa Warrior helicopters (sec.
111)
The House bill contained a provision (sec. 111) that would
modify current law to permit procurement of twenty additional
OH-58D AHIP scout helicopters.
The Senate amendment contained an identical provision (sec.
122).
The conferees understand that the procurement of twenty
additional OH-58D Armed Kiowa Warrior helicopters will cost
up to $140.0 million and agree to amend the provision to
authorize $140.0 million to procure these helicopters.
Repeal of requirements for armored vehicle upgrades (sec.
112)
The House bill contained a provision (sec. 112) that would
repeal subsection (j) of section 21 of the Arms Export
Control Act (22 U.S.C. 2761).
The Senate amendment contained no similar provision.
The Senate recedes.
Multiyear procurement of helicopters (sec. 113)
The budget request included $354.0 million to buy 18 AH-64D
aircraft and 13 Longbow fire control radars.
The House bill would authorize the budget request.
The Senate amendment contained a provision (sec. 111) that
would authorize an increase of $82.0 million and the
multiyear procurement of Longbow Apache helicopters.
The House recedes with an amendment.
The conferees agree to authorize an increase of $76.2
million for the Longbow Apache attack helicopter program and
multiyear procurement contracts for both the AH-64D Longbow
Apache attack helicopter program and the UH-60 Black Hawk
utility helicopter program.
Report on AH-64D engine upgrades (sec. 114)
The Senate amendment contained a provision (sec. 114) that
would require the Secretary of the Army to submit a report to
Congress on plans to procure T700-701C engine upgrade kits
for Army AH-64D helicopters.
The House bill contained no similar provision.
The House recedes.
Requirement for use of previously authorized multiyear
procurement authority for Army small arms procurement
(sec. 115)
The budget request did not include any funds for
procurement of small arms.
The House bill and the Senate amendment would authorize
funds for the following small arms programs as indicated
below:

------------------------------------------------------------------------
House Senate
------------------------------------------------------------------------
M-16 rifle............................................ $13.5 $13.5
M4 carbine............................................ 6.5 13.5
M9 personal defense weapon............................ 2.0 4.0
M249 squad automatic weapon........................... 28.5 28.5
MK-19 grenade launcher................................ 20.0 33.9
Medium machine gun (mod kits)......................... 6.5 6.5
------------------------------------------------------------------------

The conferees agree to provide funds for small arms
programs as indicated below:

------------------------------------------------------------------------
Dollars
(millions) Quantity
------------------------------------------------------------------------
M-16 rifle........................................ $13.5 27,500
M4 carbine........................................ 6.5 12,000
M9 personal defense weapon........................ 2.0 4,660
M249 squad automatic weapon....................... 28.5 10,265
MK-19 grenade launcher............................ 33.9 2,100
Medium machine gun (mod kits)..................... 6.5 1,434
------------------------------------------------------------------------

The conferees express their concern that the Army did not
include funds for small arms programs in the fiscal year 1996
budget request, despite specific direction regarding
multiyear procurement for small arms included in the
Statement of Managers accompanying the National Defense
Authorization Act for Fiscal Year 1995 (S. Rept. 103-701).
The conferees expect the Secretary of the Army to comply with
both the letter and intent of the law in this regard. The
conferees further expect the Secretary of the Army to ensure
that small arms programs are funded at levels approximating
those in this report until requirements for each separate
class of small arms are fully achieved and that appropriate
multiyear contracts are executed. The conferees include a
provision (sec. 116) that would direct the Secretary of the
Army to enter into multiyear procurement contracts during
fiscal year 1997, in accordance with section 115(b)(2) of the
National Defense Authorization Act for Fiscal Year 1995.

Subtitle C--Navy Programs

Nuclear attack submarines (sec. 131)
The budget request reflected a policy, adopted by the
Department of Defense as a consequence of its Bottom Up
Review, that would cause all future nuclear submarines to be
constructed by General Dynamics Electric Boat Division
(Electric Boat). The budget request included the following
funding for submarine construction programs:
(1) $1.5 billion for SSN-23, the final increment required
for full funding of this Seawolf class submarine;
(2) $704.5 million advance procurement for the first of a
new class of nuclear attack submarines, designated as the new
attack submarine (NAS), whose construction would begin in
fiscal year 1998; and
(3) a total of $455.4 million for research, development,
test, and evaluation for the NAS program.
The House report (H. Rept. 104-131) reflected the view that
changes in the Navy's plan for acquisition of nuclear attack
submarines should be made to incorporate advanced
technologies into these submarines' designs. These
recommendations were based on an underlying premise that the
Navy's NAS program would not provide an adequate
technological advantage over foreign submarines presently
under construction or in design. The House bill would:
(1) not authorize SSN-23;
(2) authorize $550.0 million for Electric Boat to design,
build, and incorporate a hull section into SSN-22 to create a
lengthened, expanded capability variant of the basic Seawolf
design, while retaining its full weapons load;
(3) authorize $704.5 million advance procurement for the
fiscal year 1998 submarine that would be built by Electric
Boat;
(4) authorize $300.0 million for Electric Boat to design
and build a second hull section that would be incorporated
into a fiscal year 1998 submarine, and convert that submarine
from the lead ship of a serial-production class, based on the
current NAS design, into an additional, one-of-a-kind,
expanded capability platform that would be derived from the
current NAS design;
(5) directs that $10.0 million of the funds in the budget
request for NAS detailed design work be used only for
establishing and maintaining a cadre of Newport News
submarine designers at Electric Boat and for transfer of

[[Page H572]]
all NAS design data from Electric Boat's design data base to Newport
News';
(6) authorize $150.0 million to begin an effort at Newport
News to design, develop, and build prototype versions of
major submarine components that would result in a follow-on
submarine design for serial production that represents a
substantial improvement in affordability and capability over
the current NAS design;
(7) direct the Advanced Research Projects Agency (ARPA) and
the national laboratories to make new technologies available
to both Electric Boat and Newport News that show potential
for achieving a follow-on submarine design for serial
production that represents a substantial improvement over the
current NAS design; and
(8) include a provision (sec. 133) that would direct the
Secretary of the navy to award, on a competitive basis,
contracts for attack submarines built after the fiscal year
1998 submarine.
The Senate amendment reflected an alternate view on how to
acquire nuclear attack submarines. It contained a provision
(sec. 121) that would:
(1) authorize the SSN-23 at $1.5 billion, the budget
request;
(2) limit the ability of the Secretary of the Navy to
obligate or expend funds for SSN-23 until he restructures the
NAS program to provide for:
(a) procurement of the lead NAS from Electric Boat in
fiscal year 1998;
(b) procurement of the second NAS from Newport News
Shipbuilding and Drydock (Newport News) in fiscal year 1999;
and
(c) competitive procurement of any additional NAS vessels
after the second. Potential competitors for these additional
vessels would be contractors that have been awarded a
contract by the Secretary of the Navy for construction of
nuclear attack submarines during the past 10 years;
(3) place additional limits on the total amount of funds
that may be expended for SSN-23 in fiscal years 1996, 1997,
1998, and 1999;
(4) direct the Secretary of the Navy to solicit competitive
proposals and award the contract or contracts for NAS, after
the second NAS, on the basis of price;
(5) direct the Secretary of the Navy to take no action that
would impair the design, engineering, construction, and
maintenance competencies of either Electric Boat or Newport
News to construct the NAS;
(6) direct the Secretary of the Navy to report every six
months to the Committee on Armed Services of the Senate and
the Committee on National Security of the House the
obligation and expenditure of funds for SSN-23 and the NAS;
(7) authorize $814.5 million in fiscal year 1996 for design
and advance procurement of the lead and second NAS, of which
$10.0 million would be available only for participation of
Newport News in the NAS design, and $100.0 million would be
available only for advance procurement and design of the
second submarine under the NAS program;
(8) place limits on the expenditure of advance procurement
funds in fiscal year 1996 for the lead NAS, unless funds are
also obligated or expended for the second NAS;
(9) authorized $802.0 million in fiscal year 1997 for
advance procurement of the lead and second NAS, of which
$75.0 million would be available only for participation by
Newport News in the design of the NAS, and $427.0 million
would be available only for advance procurement and design of
the second submarine under the NAS program; and
(10) authorized $455.4 million, the budget request, for
research, development, test, and evaluation for the NAS
program.
The conferees agree to adopt a new provision dealing with
the design and procurement of future Navy attack submarines.
This provision would:
(1) authorize the SSN-23 at $700.0 million;
(2) authorize $804.5 million in fiscal year 1996 for design
and advance procurement of the fiscal year 1998 and fiscal
year 1999 submarines (previously designated by the Navy as
the NAS), of which;
(a) $704.5 million would be available only for long-lead
and advance construction and procurement for the fiscal year
1998 submarine, which would be built by Electric Boat; and
(b) $100.0 million would be available only for long-lead
and advance construction and procurement for the fiscal year
1999 submarine, which would be built by Newport News;
(3) authorize $10.0 million only for participation of
Newport News in the design of the submarine previously
designated by the Navy as the NAS;
(4) establish a special bipartisan congressional panel that
would be briefed, at least annually, by the Secretary of the
Navy on the status of the submarine modernization program and
submarine-related research and development;
(5) direct the Secretary of Defense, not later than March
15, 1996, to accomplish the following:
(a) develop and submit a detailed plan for development of a
program that will lead to production of more capable, less
expensive submarines than the submarine previously designated
as the NAS;
(b) ensure the plan includes a program for the design,
development, and procurement of four nuclear attack
submarines that would be procured during fiscal years 1998
through 2001 with each successive submarine being more
capable and more affordable;
(c) structure the program so that:
(i) one of the four submarines would be constructed with
funds appropriated for each fiscal year from fiscal year 1998
through fiscal year 2001;
(ii) to ensure flexibility for innovation, the fiscal year
1998 and the fiscal year 2000 submarines would be constructed
by Electric Boat and the fiscal year 1999 and the fiscal year
2001 submarines would be constructed by Newport News;
(iii) the design previously designated as the NAS would be
used as the base design by both contractors:
(iv) each contractor would be called on to propose
improvements, including design improvements, for each
successive submarine so that each of them would be more
capable, more affordable, and their design would lead to a
design for a future class of nuclear attack submarines that
would possess the latest, best, and most affordable
technology; and
(v) the fifth and subsequent nuclear attack submarines,
proposed for construction after SSN-23, would be procured
after a competition based on price;
(d) the Secretary of Defense's plan would also:
(i) set forth a program to accomplish the design,
development, and construction of the four submarines that
would take maximum advantage of a streamlined acquisition
process;
(ii) culminate in selection of a design for a next
submarine for serial production not earlier than fiscal year
2003 with procurement to occur after a competition based on
price;
(iii) identify advanced technologies that are in various
phases of research and development, as well as those that are
commercially available off-the-shelf, that are candidates for
incorporation into the plan to design, develop, and procure
the submarines;
(iv) designate the fifth submarine procured after SSN-23 to
be the lead ship in a next generation submarine class, unless
the Secretary of the Navy, in consultation with the special
congressional submarine review panel, determines that more
submarines should be built before the design of a new class
of submarines is fixed, in which case the fifth and each
successive submarine would be procured after a competition
based on price; and
(v) identify the impact of the submarine program on the
remainder of the Navy's shipbuilding account;
(6) impose certain limits on the amounts that can be
obligated and expended on the SSN-23 and the fiscal year 1998
and 1999 submarines until:
(a) the Secretary of the Navy has certified in writing to
the Committee on Armed Services of the Senate and the
Committee on National Security of the House that procurement
of future nuclear attack submarines, except as stipulated
elsewhere in this provision, would be accomplished through a
competition based on price; and
(b) the Secretary of Defense, not later than March 15,
1996, has:
(i) submitted the submarine design and procurement plan
that would be required by the provision;
(ii) directed the Under Secretary of Defense (Comptroller)
to incorporate the costs of the submarine design and
procurement plan into the future years defense program, even
if the total cost of the plan's program exceeds the
President's budget; and
(iii) directed that the Under Secretary of Defense for
Acquisition and Technology conduct oversight of the
development and improvement of the nuclear attack submarine
program of the Navy and established reporting procedures to
ensure that officials of the Department of the Navy, who
exercise management oversight of the program, report to the
Under Secretary of Defense for Acquisition and Technology
with respect to that program;
(7) direct the Secretary of Defense to use streamlined
acquisition policies to reduce the cost and increase the
efficiency of the submarine program;
(8) direct the Secretary of Defense to submit to Congress
an annual update of the submarine design and procurement plan
with the submission of the President's budget, for each of
fiscal years 1998 through 2002;
(9) direct that funds authorized for fiscal year 1996 by
this provision may not be obligated or expended during fiscal
year 1996 for the fiscal year 1998 submarine unless funds are
also obligated and expended during fiscal year 1996 for the
fiscal year 1999 submarine;
(10) authorize the Secretary of the Navy to enter into
contracts with Electric Boat and Newport News, and suppliers
of components during fiscal year 1996 for:
(a) the procurement of long-lead components for the fiscal
year 1998 submarine and the fiscal year 1999 submarine; and
(b) advance construction of long-lead components and other
components for such submarines;
(11) authorize that, of the amount provided in section
201(4) of this Act for ARPA, that $100.0 million would be
available only for development and demonstration of advanced
technologies for incorporation into the submarines
constructed as part of the submarine design and procurement
plan specified under this provision, to include electric
drive, hydrodynamic quieting, ship control automation, solid-
state power electronics, wake reduction technologies,
superconductor technologies, torpedo defense technologies,
advanced control concepts, fuel cell technologies, and
propulsors;

[[Page H573]]

(12) direct that the Director of ARPA shall implement a
rapid prototype acquisition strategy for both land-based and
at-sea subsystem and system demonstrations of advanced
technologies in concert with Electric Boat and Newport News:
and
(13) define potential competitors, for the purposes of this
provision, as those that have been awarded a contract by the
Secretary of the Navy for construction of nuclear attack
submarines during the past 10 years.
Research for advanced submarine technology (sec. 132)
The conferees agree to adopt a new provision that would
direct that, of the amount appropriated for fiscal year 1996
for the national defense sealift fund, $50.0 million would be
available only for the Director of the Advance Research
Projects Agency for advanced submarine technology activities.
Cost limitation for Seawolf submarine program (sec. 133)
The Senate amendment would authorize the third Seawolf
class submarine SSN-23. Consistent with this authorization,
the Senate amendment included a provision (sec. 125) that
would establish a combined cost cap on all three Seawolf
submarines (SSN-21, SSN-22 and SSN-23). This cost cap would
be in addition to a cost cap that Congress imposed on the
first two Seawolf class submarines, SSN-21 and SSN-22, in
fiscal year 1995.
The House bill included a provision (sec. 132) that would
repeal the cost cap on SSN-21 and SSN-22.
The conferees agree to adopt a new provision that would:
(1) establish a combined cost cap on the three Seawolf
submarines (SSN-21, SSN-22, and SSN-23); and
(2) repeal the combined cost cap on SSN-21 and SSN-22 that
was imposed by the National Defense Authorization Act for
Fiscal Year 1995.
Repeal of prohibition on backfit of Trident submarines (sec.
134)
The House bill contained a provision (sec. 131) that would
repeal the provision of law that prohibits the backfit of
Trident II (D-5) missiles into Trident I (C-4) missile-
carrying submarines.
The Senate amendment contained an identical provision (sec.
122).
The conference agreement contains this provision.
The conferees endorse an all D-5 fleet of Trident
submarines. But the conferees also believe that it is
premature to rule out the option of retaining all 18 Trident
submarines. Although the Nuclear Posture Review recommended a
force of 14 Trident submarines equipped with the D-5 missile,
circumstances may require the United States to retain a
higher number of such submarines or, alternatively, reduce to
a lower level.
Given this uncertainty, the conferees direct the Secretary
of the Navy to take several actions: (1) fully fund all
activities necessary for the backfitting of Trident II
missiles into at least four west coast Trident submarines on
the schedule recommended in the Nuclear Posture Review; and
(2) continue to fund, in the fiscal year 1997 budget and in
the Future Years Defense Program, adequate operational
support for Trident I missiles to ensure the option of
retaining all 18 Trident submarines on full operational
status, assuming backfits of the final four submarines with
D-5 missiles following the completion of the first four
conversions.
Arleigh Burke class destroyer program (sec. 135)
The Senate amendment contained a provision (sec. 123) that
would:
(1) authorize $650.0 million as the first increment of
split funding for two Arleigh Burke class destroyers in
accordance with a split funding provision (sec. 124) that was
included elsewhere in the Senate amendment; and
(2) express the sense of Congress that the Secretary of the
Navy should plan for and request the final increment of
funding for the two Arleigh Burke class destroyers in fiscal
year 1997, also in accordance with the split funding
provision (sec. 124) of the Senate amendment.
The House bill contained no similar provision.
The conferees adopt a new provision that would:
(1) authorize six Arleigh Burke class destroyers;
(2) authorize $2.17 billion, the budget request, for the
construction, including advance procurement, for Arleigh
Burke class destroyers;
(3) authorize the Secretary of the Navy to enter into
contracts in fiscal year 1996 for the construction of three
Arleigh Burke class destroyers;
(4) authorize the Secretary of the Navy to enter into
contracts in fiscal year 1997 for the construction of three
Arleigh Burke class destroyers, subject to the availability
of appropriations for such destroyers;
(5) continue the contract award pattern and sequence used
by the Navy for the procurement of Arleigh Burke class
destroyers in fiscal years 1994 and 1995;
(6) limit the liability of the government for these vessels
to the amounts appropriated for them; and
(7) encourage, subject to a prior notification to the
congressional defense committees, the Secretary of the Navy
to use shipbuilding and conversion savings, that become
excess to the needs of the Navy from other programs, to fully
fund Arleigh Burke class destroyer contracts entered into
under the terms of the provision.
Acquisition program for crash attenuating seats (sec. 136)
The Senate amendment contained a provision (sec. 126) that
would allow the Secretary of the Navy to establish a program
to procure and install commercially developed, energy
absorbing, crash attenuating seats in H-53E helicopters. The
Senate provision would allow the Secretary to use up to $10.0
million for the program out of unobligated balances in the
Legacy Resource Management Program.
The House bill contained no similar provision.
The House recedes with an amendment that would require the
Secretary to establish such a program.
The conferees acknowledge the potential value of crash
attenuating seats for passengers in military helicopters, and
expect the Department to proceed quickly to define the
technical specification and qualification for non-
developmental seats. The conferees further expect the
Department to ensure the acquisition program incorporates
full and open competition.
T-39N trainer aircraft (sec. 137)
The budget request did not include funds to purchase the T-
39N aircraft the Department of the Navy now uses to train
naval flight officers. The government leases these aircraft
as part of a service contract. The lessor has offered to sell
these aircraft to the government, rather than continue the
current leasing arrangement.
The House bill and the Senate amendment would support the
budget request.
The Senate report (S. Rept 104-112) would direct the
Secretary of the Navy to provide an analysis of the
contractor's proposal to the Armed Services Committee of the
Senate, so the proposal and the analysis could be reviewed
for possible further action.
The conferees recommend $45.0 million for purchasing T-39N
aircraft, subject to certain conditions. The conferees
believe that the proposal deserves further review before
purchasing these aircraft. The conferees expect the
Department's analysis to answer, at a minimum, the following
questions:
(1) What would be the status of the training program for
which T-39Ns are currently leased?
(2) For what purpose would the Navy spend procurement funds
in fiscal year 1996?
(3) Is funding for this project contained anywhere in the
future years defense program (FYDP)? If there is funding, how
much?
(4) Is there an approved requirement in the Navy for
acquiring this capability? Does this requirement supplant or
supplement the current mission that is being filled by the T-
39N leasing program?
(5) How much funding beyond $45.0 million would be required
to enable the T-39N system to meet future training
requirements? If additional funds are required, how much of
the additional cost is budgeted in the FYDP?
(6) What savings, in terms of both current and constant
dollars, would accrue to the Navy by purchasing aircraft for
this requirement on a non-competitive basis in fiscal year
1996, rather than selecting an aircraft under competitive
procedures when the current lease program expires in fiscal
year 1998? If savings will accrue, are they attributable to
factors other than inflation? Are there savings in life cycle
support costs beyond the initial acquisition costs?
(7) Would additional funding for the project now interfere
with the Navy's opportunity to conduct a competitive
procurement or better define the program's requirements?
(8) Are there other reasons that would prevent executing
the program in fiscal year 1996?
(9) The conferees understand that the T-39N leasing
contract provided for amortizing the full purchase price of
the aircraft over the first five years of the lease. Since
the contractor has already been reimbursed in full for
purchase price, why would it be in the government's interests
to pay more than a nominal amount for aircraft?
The conferees believe that the proposal to buy the aircraft
could have merit; however, the conferees recommend a
provision that would prohibit obligation of these acquisition
funds until 60 days after the Under Secretary of Defense for
Acquisition and Technology has submitted the analysis
described above and has certified to the Armed Services
Committee of the Senate and the National Security Committee
of the House of Representatives that acquisition of the T-39N
aircraft is in the best interest of the government and is the
most cost effective alternative in meeting the requirements
for training naval flight officers.
Pioneer unmanned aerial vehicle program (sec. 138)
The Senate amendment contained a provision (sec. 132) that
would prohibit the Secretary of the Navy from spending more
than one-sixth of the funds appropriated for fiscal year
1996, or any unobligated balances available from previous
years, until the Secretary certifies that funds have been
obligated to equip nine Pioneer Unmanned Aerial Vehicle
systems with the Common Automatic Landing and Recovery System
(CARLS).
The House bill contained no similar provision.
The House recedes.

Subtitle D--Air Force Programs

Repeal of limitations (secs. 141 and 142)
The budget request included $279.9 million for B-2
procurement and $623.6 million for B-

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2 research and development for a B-2 program consisting of twenty
aircraft. The House bill contained a provision (sec. 141)
that would repeal limitations on the B-2 program, and provide
an increase of $553 million for B-2 procurement. The House
bill would repeal:
Section 112 of the National Defense Act for Fiscal Years
1990 and 1991, which requires certification from the
Secretary of Defense that the B-2 is meeting certain
performance criteria.
Section 151(c) of the National Defense Authorization Act
for Fiscal Year 1993, which limits B-2 procurement to 20
bombers and one test aircraft.
Section 131(c) of the National Defense Authorization Act
for Fiscal Year 1994, which reaffirms the twenty one aircraft
limitation.
Section 131(d) of the National Defense Authorization Act
for Fiscal Year 1994, which limits the total program costs to
$28,968,000,000 in Fiscal Year 1981 constant dollars.
Section 133(e) of the National Defense Authorization Act
for Fiscal Year 1995, which provides that none of the $125.0
million authorized and appropriated for the Enhanced Bomber
Capability Fund may be obligated for advance procurement of
new B-2 aircraft (including long lead items).
The Senate amendment contained no additional funds, nor did
it contain any repeal of the limitations provision.
The conferees agree to an amendment that would repeal the
limitations imposed on the scope of the B-2 program, while
retaining requirements for B-2 performance compliance in both
the present authorization and any possible future acquisition
of the aircraft.
The conferees agree to authorize the budget request for
research and development and to increase the authorization
for procurement by $493.0 million. The conferees further
agree that the $493.0 million may not be spent until March
31, 1996.
The conferees believe that the B-2 bomber represents a
major technological advance in strategic bomber capabilities.
However, if a decision were made to acquire additional B-2
bombers, their high cost would result in funding reductions
in the Administration's five year defense program. Therefore,
the Senate conferees believe that the increased authorization
of $493.0 million provided for the B-2 bomber program may be
expended only for procurement of B-2 components, upgrades,
and modifications that would be of value for the existing
fleet of B-2 bombers.
The conferees are concerned over the cost of producing
modern, highly capable, long range bombers, and therefore
strongly urge the Secretary of Defense to: (1) complete the
study called for in section 133(d)(3) of the National Defense
Act of 1995 (Public Law 103-337) for requirements formulation
and conceptual studies for a conventional-conflict-oriented,
lower-cost, next generation bomber; and (2) explore options,
including adoption of streamlined acquisition policies and
procedures, for reducing the costs of producing long-range
bombers. Accordingly, the conferees agree to repeal the
requirements contained in section 133(d)(3), which states
that such a study may be carried out only if the previously-
produced bomber force study found bomber capabilities to be
inadequate.
The conferees note that section 133(d) permitted the
Secretary to obligate up to $25.0 million of the $125.0
million authorized and appropriated in fiscal year 1995 for
the Enhanced Bomber Capability Fund for such a study. The
conferees direct that any remaining unobligated fiscal year
1995 funds from the $125.0 million made available for B-2
bomber industrial base preservation and next-generation
bomber study shall promptly be merged with the $493.0 million
in additional B-2 funds authorized in this Act.
In order to compare force capabilities with relative costs,
the conferees urge the Secretary of Defense to provide a
summary and detailed listing of program reductions and
adjustments to the fiscal year 1997 budget request and the
future years' defense program (FYDP) required by the possible
acquisition of additional B-2 bombers. The Secretary should
use the standard cost analysis approach used in the March
1995 Air Force cost estimate for further B-2 acquisition of
one and one-half and three aircraft per year.
MC-130H Aircraft Program (sec. 143)
The conference agreement includes a new provision that
would amend section 161 of the National Defense Authorization
Act for Fiscal Years 1990 and 1991 (P.L. 101-189) to enable
obligation of funds for award fee and procurement of
contractor furnished equipment.
The conferees understand that the Air Force desires to
grant an award fee to the MC-130H Combat Talon II development
contractor, but is prohibited from doing so by a provision of
Public Law 101-189. The conferees note that the prohibitive
legislative provision requires the Director of Operational
Test and Evaluation (DOT&E) to certify that the MC-130H
Combat Talon II terrain avoidance radar performs in
accordance with requirements outlined in the test and
Evaluation Master Plan (TEMP) approved by the DOT&E in
September 1988. The conferees have been informed that the
aircraft cannot be certified as having met TEMP criteria
because a specific test criterion referred to in the TEMP has
been determined to be unmeasurable.
The conferees agree to include a provision that would allow
the DOT&E to certify to the congressional defense committees
that the MC-130H terrain avoidance radar is operationally
effective in order to release the award fee for the MC-130H.
The conferees direct the DOT&E to include in his report a
statement that all unmeasurable test criteria included in the
September 1988 TEMP have been appropriately corrected.

Subtitle E--Chemical Demilitarization Program

Chemical agents and munitions destruction program (secs. 107,
151-153)
The budget request contained $746.7 million for operation
and maintenance, research and development and procurement,
for the defense chemical agents and munitions destruction
program.
The House bill contained a series of provisions (secs. 106,
151-153, and 2407) that would: authorize the budget request;
repeal a legislative requirement to develop a chemical
demilitarization cryofracture facility; express congressional
concern about the cost growth of destroying the unitary
chemical stockpile and express a view that the Secretary of
Defense should consider measures to reduce the overall cost;
direct the Secretary of Defense to conduct a review and
evaluation of issues associated with closure and reuse of the
Department of Defense facilities that are co-located with the
unitary chemical stockpile and demilitarization operations;
and prohibit the obligation or expenditure of fiscal year
1996 funds, prior to March 1, 1996, for the construction of a
chemical munitions incinerator facility at Umatilla Army
Depot, Oregon.
The Senate amendment contained provisions (sec. 107 and
1099C) that would authorize $671.7 million for the chemical
agents and munitions destruction program, and direct the
Department of Defense to review and assess the risk
associated with the transportation of any portion of the
unitary chemical stockpile, such as drained chemical agents
or munitions from one location to another within the
continental United States, and review and evaluate issues
associated with closure and reuse of the Department of
Defense facilities that are co-located with the unitary
chemical stockpile and demilitarization operations. The
Senate report (S. Rept. 104-112) would recommend the use of
unobligated fiscal years 1994 and 1995 procurement funds for
procurement of equipment at Pine Bluff, Arkansas and
Umatilla, Oregon.
The conferees agree to provisions that would authorize
$672.3 million for the defense chemical agents and munitions
program, to include: $265.0 million for procurement; $353.8
million for operations and maintenance; and $53.4 million for
research and development. The provision would repeal the
legislative requirement to develop a chemical
demilitarization cryofracture facility.
Further, the conferees agree to provisions that would
direct the Secretary of Defense to proceed with the
destruction of the U.S. chemical stockpile using the current
baseline technology. The conferees would also require the
Secretary to ensure that support measures have been provided
at each installation where a chemical agent and munitions
demilitarization facility would be constructed, as required
by the Department of Defense and the Department of Army
regulations, the chemical demilitarization plans, and the
Solid Waste Disposal Act permit. The conferees direct the
Secretary to conduct an assessment of the current chemical
demilitarization program and recommend measures that could
reduce the total cost of the program. The provision would
also direct the Secretary to review and evaluate issues
associated with the closure and reutilization of Department
of Defense facilities co-located with continuing chemical
stockpile and chemical demilitarization operations. The
conferees agree to authorize the use of funds appropriated
for the defense chemical agents and munitions destruction
program to support travel and associated travel costs of
Commissioners of the Citizens' Advisory Commissions, when
such travel is conducted at the invitation of the Assistant
Secretary of the Army for Research, Development and
Acquisition. The provision would modify existing law to
permit the appointment of a civilian as project manager for
the chemical agent and munitions destruction program. The
Department would also be required to provide a quarterly
report to Congress on the use of such funds to pay for the
travel and associated travel costs.

COST OF THE CHEMICAL AGENTS AND MUNITIONS DESTRUCTION PROGRAM

The conferees remain concerned about the escalating costs
associated with the chemical agents and munitions destruction
program. The program has grown from its original estimate of
$1.7 billion in 1986 to the current estimated cost of $11.9
billion, with expectations that costs will further increase.
Continued delays in proceeding with the demilitarization and
destruction of the chemical stockpile have added to the
overall increases in the program. The conferees believe that
the program should proceed expeditiously and utilize
technology that minimizes risks to the public and the
environment.
The conferees are concerned that continued delays, related
to site operation systemization, environmental permits, and
construction of the demilitarization and destruction
facilities, would increase the overall program costs and
risks to the public and the environment.
Finally, as the Department reviews measures that could be
implemented to reduce the growth of the program costs, the
conferees expect the Secretary to consider the potential for
reconfiguration of the stockpile, as described in the October
19, 1995 letter from the Assistant Secretary of the

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Army for Research, Development and Acquisition, and to ensure
protection of the public and environment.

ALTERNATIVE TECHNOLOGIES

The Department of the Army is currently conducting research
and development of chemical neutralization and
biodegradation, in conjunction with neutralization, for use
at the bulk-only storage sites. The conferees believe there
is potential for the implementation of these processes at
future demilitarization and destruction sites, which could
reduce the requirement for a liquid incinerator. The
conferees support the National Research Council's (NRC's)
recommendation that the Army continues its current baseline
incineration program until such time as the evaluation of
these alternative technologies is concluded.
If the evaluation of the alternative technologies research
and development program proves successful, the conferees
would support inclusion of this process into the baseline
process. In conducting the chemical demilitarization and
destruction program and assessing measures to significantly
reduce program costs, the conferees expect the Department to
consider a wide range of alternatives to the current baseline
incineration program, to include the use of alternative
technologies.
Additionally, the conferees expect the Secretary's
assessment of the current chemical demilitarization program
and measures to reduce the overall cost of the program, to
include a risk analysis specific to each chemical stockpile
storage and demilitarization site, the results of the
stockpile surveillance and stability analysis related to the
physical and chemical integrity of the stockpile, and the
potential reconfiguration of the chemical stockpile. In
making such an assessment, the Secretary shall ensure the
maximum protection of the environment, the general public,
and the personnel involved in the destruction of the chemical
stockpile, while minimizing total program costs. The
conferees expect the assessment to yield potential revisions
to the chemical agents and munitions destruction program that
could reduce program costs and increase public safety.

legislative provisions not adopted

Repeal of limitation on total cost for SSN-21 and SSN-22
Seawolf submarines
The budget request included $1.5 billion for construction
of the third Seawolf class submarine, SSN-23.
The House bill would not authorize SSN-23. However,
consistent with other actions taken by the House on SSN-22,
the House bill contained a provision (sec. 132) that would
eliminate the existing cost cap on the first two Seawolf
class submarines.
The Senate amendment would authorize SSN-23. It did not
contain a provision that would repeal the cost cap on SSN-21
and SSN-22.
The House recedes.
Competition required for selection of shipyards for
construction of vessels for next generation attack
submarine program
The House bill contained a provision (sec. 133) that would:
(1) require the Secretary of the Navy to select on a
competitive basis the shipyard for construction of each
vessel of the next generation attack submarine program; and
(2) stipulate that the next generation attack submarine
program shall begin with the first submarine that is
programmed to be constructed after the submarine that is
programmed to be constructed in fiscal year 1998.
The Senate amendment contained a provision (sec. 121) that
would address competition as an integral part of the broader
issue of current and future nuclear submarine construction
programs.
The House recedes.
The conferees agree to incorporate the issue of competition
for future submarines into a new, more comprehensive
provision dealing with future submarine development and
procurement.
Sonobuoy programs
The budget request included $8.9 million for the
procurement of AN/SSQ-53 sonobuoys and no funding for the
procurement of AN/SSQ-110 sonobuoys.
The House bill contained a provision (sec. 134) that would:
(1) stipulate that no fiscal year 1996 funds could be used
for procurement of AN/SSQ-53 sonobuoys; and
(2) authorize $8.9 million for AN/SSQ-110 sonobuoys.
While the Senate amendment contained no similar provision,
it did recommend funding adjustments to these two sonobuoy
programs that would accomplish the intent underlying the
House provision.
The conferees agree that the funding adjustment included in
the House provision should be adopted, but do not believe
that a legislative provision to that effect is necessary.
The House recedes.
Split funding for construction of naval vessels and
incremental funding of procurement items
The Senate amendment contained a provision (sec. 124) that
would authorize the Secretary of Defense to employ split
funding for construction of certain naval vessels when
developing the future years defense program. The provision
would permit the Secretary to provide funding for these
vessels over two years, but enter into a contract based on
the first increment of funding. The intent of the provision
would be to provide the Secretary with more flexibility to
develop a uniform and cost effective shipbuilding program.
The House bill contained a provision (sec. 1007) that would
prohibit the use of incremental funding, including split
funding, for:
(1) the procurement of aircraft, missiles, or naval
vessels;
(2) the procurement of tracked combat vehicles;
(3) the procurement of other weapons; and
(4) the procurement of naval torpedoes and related support
equipment.
The House provision would not apply to funding classified
as advance procurement funding.
These provisions were not included in the conference
agreement.
Tier II predator unmanned aerial vehicle program
The Senate amendment contained a provision (sec. 131) that
would prohibit the obligation of funds appropriated or
otherwise made available for the Department of Defense in
fiscal year 1996 for the Tier II Predator Unmanned Aerial
Vehicle.
The House bill contained no similar provision.
The Senate recedes.
Joint primary aircraft training system program
The budget request included $55.0 million for three joint
primary aircraft training system (JPATS) aircraft. At the
time of the budget submission, the Department of Defense
(DOD) had not completed the JPATS competition. This amount
was derived from an estimate of funding required to procure
three aircraft from any of the potential competitors. After
source selection, the Department determined that it could
procure eight JPATS aircraft with the requested funds.
The Senate amendment contained a provision (sec. 133) that
would increase the number of aircraft that the Department
could procure, from three to eight, without changing the
amount of the authorization.
The House bill contained no similar provision.
The Senate recedes.
The conferees agree that the Air Force should buy up to
eight aircraft with authorized funds.
Weapons industrial facilities
The budget request included $13.1 million for naval weapons
industrial facilities.
The Senate amendment included a provision (sec. 391) that
would authorize an increase of $2.0 million in operations and
maintenance accounts for essential safety functions for the
Allegany Ballistics Laboratory.
The House bill contained no similar provision.
The Senate recedes. The conferees agree to provide an
increase of $30.0 million for naval weapons industrial
facilities for continuation of the facility restoration
program at Allegany Ballistics Laboratory.

Title II--Research, Development, Test, and Evaluation

Overview
The budget request for fiscal year 1996 contained an
authorization of $34,331.9 million for Research and
Development in the Department of Defense. The House bill
would authorize $35,934.5 million. The Senate amendment would
authorize $35,959.9 million. The conferees recommended an
authorization of $35,730.4 million. Unless noted explicitly
in the statement of managers, all changes are made without
prejudice.

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Overview
The budget request for fiscal year 1996 contained an
authorization of $4,444.2 million for Army, Research and
Development in the Department of Defense. The House bill
would authorize $4,774.9 million. The Senate amendment would
authorize $4,845.1 million. The conferees recommended an
authorization of $4,737.6 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

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Passive millimeter wave camera
The budget request did not include funds for the passive
millimeter wave camera.
The House bill would add $6.0 million in PE 62120A for
continuation of the program.
The Senate amendment contained no similar provision.
The Senate recedes.
Tractor rose
The budget request included $4.5 million for Tractor Rose.
The House bill would authorize the requested amount.
The Senate amendment would authorize an additional $13.5
million.
The conferees are aware of recent progress in the
activities related to this program. As a consequence, the
conferees recommend authorization of this project at the
level of funds appropriated in fiscal year 1996. In addition,
the conferees urge the Department of the Army to consider
reprogramming funds below threshold to capitalize on the
potential of this technology.
Electric gun technology
The budget request included $9.0 million for the electric
gun exploratory development program.
The House bill would authorize an additional $6.0 million
in PE 62618A to complete research team data gathering and
assessment in order to refocus the effort on the most
promising technologies.
The conferees agree to authorize an additional $7.0 million
for electric gun technology and an additional $1.0 million
for the electrothermal chemical gun.
Objective individual combat weapon (OICW)
The budget request included $5.1 million in PE 62623A and
$4.5 million in PE 63607A for continuation of the joint
service small arms program.
The House bill would authorize an additional $2.0 million
in PE 63607A for an advanced technology demonstration of
lightweight, medium caliber, multi-shot, anti-armor weapon
technology for application to a next-generation objective
individual combat weapon system (OICW) for the Army and the
Marines. The House report (H. Rept. 104-131) expressed the
concern that funds requested for the OICW in fiscal year 1996
are insufficient to adequately conduct this advanced
technology program. The House report also encouraged the
Secretary of the Army to examine the current development
strategy for the OICW to support the joint small arms master
plan (JSAMP) and to request reprogramming of funds to carry
out the plan.
The Senate amendment would authorize the requested amount.
The House recedes. The conferees strongly support the
development of advanced technology for advanced individual
weapons systems, as outlined in the JSAMP, and share the
concerns expressed in the House report regarding adequacy of
funding for development of the OICW. The conferees encourage
the Secretary of the Army to request reprogramming of
additional funds to compensate for any fiscal year 1996
funding shortfalls in the OICW program. The conferees also
encourage the Secretary to include additional funds in the
fiscal year 1997 budget request for OICW.
Advanced battery technology
The budget request did not include funding for advanced
batteries.
The House bill would authorize $3.0 million in PE 62705A
for non-metallic lithium and low-cost reusable alkaline
batteries.
The Senate amendment contained no similar provision.
The conferees agree to the House authorization, but agree
to provide only $2.0 million in PE 62705A.
Environmental policy simulation laboratory
The conferees agree that $3.0 million of the funds
appropriated in PE 62720A shall be authorized for the
establishment of an environmental policy simulation lab under
the direction of the Army Environmental Policy Institute. The
conferees further direct the Department of Defense to comply
with the direction contained in the Senate report (S. Rept.
104-112) regarding the establishment of this lab.
Command, control, and communications technology
The budget request included $15.7 million in PE 62782A for
the exploratory development of command, control, and
communications technology.
The House bill would authorize the requested amount.
The Senate amendment would authorize an additional $2.0
million in PE 62782A as part of a general increase to address
underfunding in the Army technology base.
The Senate recedes.
The conferees agree that the Army technology base has been
underfunded in recent years. The conferees urge the Army
leadership and the Office of the Secretary of Defense provide
for balanced funding of the Army technology base program, as
related to other Defense program accounts in the fiscal year
1997 budget request.
Medical advanced technology
The budget request included $11.8 million for medical
advanced technology.
The House bill would include an additional $5.0 million for
continuation of the battlefield tissue replacement program.
The Senate amendment would include an additional $3.0
million for telemedicine.
The conferees agree to authorize an additional $8.0 million
for both of these programs and an additional $1.0 million for
Army standardized testing of Trichloromelamine (TCM) in PE
63002A.
Aviation advanced technology
The budget request included $48.6 million for aviation
advanced technology.
The House bill provided an additional authorization of $6.5
million for evaluation of the Starstreak missile and $10.0
million for tactical mobility technologies and designs,
particularly related to the CH-47.
The Senate amendment would authorize the budget request.
The conferees agree to authorize an additional $4.0 million
in PE 63003A for the completion of the phase II air-to-air
test and evaluation for Starstreak during fiscal year 1996
and $4.0 for modernization technologies and improvement
designs for the CH-47D.
The Army is encouraged to provide sufficient funding in its
fiscal year 1997 budget request for completion of the air-to-
air Starstreak evaluation program and continuation of the CH-
47D modernization program.
Weapons and munitions-advanced technology
The budget request included $18.8 million for weapons and
munitions advanced technology.
The House bill would authorize an additional $2.0 million
for the XM 982/155mm projectile development.
The Senate amendment would authorize the request.
The conferees agree to authorize $2.0 million for the XM
982/155mm projectile development, an additional $6.0 million
for the precision guided mortar munition, and an additional
$1.0 million for electrorheological fluid recoil in PE
63004A.
Command, control, and communications-advanced technology
The budget request included $16.9 million in PE 63006A for
advanced development of command, control, and communications
technology.
The House bill would authorize the requested amount.
The Senate amendment would authorize an additional $3.0
million to partially address funding shortfalls in the Army
technology base for fiscal year 1996. The Senate amendment
would also authorize an increase of $4.0 million in PE 63006A
to develop and test wave net technology for possible
application to the Army's digitization initiatives.
The conferees agree to authorize the additional $4.0
million to PE 63006A for development and testing of wave net
technology.
Space applications technology program
The budget request included $16.9 million in PE 63006A for
command, control, and communications advanced technology,
including $498,000 for the Army's space applications
technology program.
Both the House bill and the Senate amendment would
authorize the budget request for the Army's space
applications technology program.
The conferees agree to an additional $5.0 million in PE
63006A for the space applications technology program. The
conferees are aware of the program's success in demonstrating
global positioning system and Wrasse weather data receivers
during Operation Desert Storm/Desert Shield and other space
technology applications, such as, the location of high value
targets using hyperspectral sensing techniques, high data
rate satellite communications on the move, and down link
weather satellite technology. The conferees encourage the
Army to continue support to the program in future budget
requests.
Acquired immune deficiency syndrome
The budget request included $2.9 million in PE 63105A.
Both the House bill and the Senate amendment authorized the
requested amount.
The conferees agree to authorize the requested amount and
concur with the Senate report (S. Rept. 104-112) that
directed at least $1.0 million of the authorized amount be
used to continue domestic clinical HIV programs.
Joint precision strike demonstration programs
The budget request included $34.1 million in PE 63238A for
the joint air-land-sea precision strike demonstration (JPSD)
program.
The House bill would direct that the JPSD program be
expanded into a jointly manned program, with participation by
all military services, and would recommend an increase of
$4.0 million for this purpose.
The Senate amendment would authorize the requested amount.
The House recedes. The conferees agree with the views
expressed in the House report (H. Rept. 104-131) on the
progress made by the Army in demonstrating advanced concepts
for attack of time-critical targets. The conferees also agree
with the House report recommendations for increased
participation by the other military services in the JPSD.
Attack of time-critical targets on the battlefield is a joint
issue which requires the coordinated efforts of all the
military services.
Missile and rocket advanced technology
The budget request included $123.9 million in PE 63313A for
missile and rocket advanced technology.
The House bill would reduce the requested amount by $12.1
million by making the following adjustments: adding $2.5
million for low cost autonomous attack submunition (LOCAAS)
and $5.0 million for low-cost guidance development for the
multiple launch rocket system (MLRS); and reducing the amount
requested for the rapid force projection initiative by $19.6
mil

[[Page H584]]
lion.
The Senate amendment would increase the requested amount by
$12.0 million, with $5.0 million for LOCAAS and $7.0 million
for low-cost guidance for MLRS.
The conferees agree to authorize a total of $118.9 million
in PE 63313A. The conferees agree to reduce the requested
amount by $7.5 million for the Enhanced-Fiber Optic Guided
(E-FOG) missile system, as a result of concerns expressed in
the House report (H. Rept. 104-131), and to add $2.5 million
for LOCAAS within PE 63313A. The conferees would also
increase the requested amount by $2.5 million for LOCAAS in
PE 63601F for the Air Force. The conferees continue to
support low-cost guidance for the MLRS and urge the Army to
reprogram funds for this program in fiscal year 1996 and to
request adequate funds in the fiscal year 1997 budget
request.
Landmine warfare and barrier advanced technology
The budget request included $18.8 million for landmine
warfare, and barrier advanced technology.
The House bill would authorize an additional $10.0 million
for continuation of the landmine neutralization program.
The Senate amendment would approve the budget request.
The conferees agree to authorize an increase of $6.0
million for PE 63606A. Of this increase, $3.0 million will be
used for landmine detection and clearance technology
development, and $3.0 million will be used for the
accelerated development and testing of the Ground Penetrating
Radar.
Intelligence fusion analysis demonstration
The budget request included $2.9 million in PE 63745A for
the Intelligence Fusion Analysis Demonstration program.
The House bill would authorize an additional $3.0 million
for development and evaluation in Army Warfighter Experiments
and the joint precision strike demonstration program of
advanced large screen, automated graphical displays that
would provide enhanced situational awareness for tactical
commanders.
The Senate amendment would authorize the requested amount.
The Senate recedes.
Aviation advanced development
The budget request contained $8.4 million for aviation
advanced development.
The House bill would authorize an additional $6.0 million
for the common helicopter helmet development in PE 63801A.
The Senate amendment would authorize the budget request.
The Senate recedes.
Comanche helicopter (RAH-66)
The budget request included $199.1 million to continue
development of the Comanche scout/attack helicopter.
The House bill would authorize an increase of $100.0
million for Comanche research and development.
The Senate amendment would authorize an increase of $174.0
million and require the Department of Defense and the
Department of the Army to develop a plan to provide for
procurement of Comanche helicopters, not later than fiscal
year 2001, with initial operating capability by fiscal year
2003.
The Senate recedes.
The conferees agree to authorize an increase of $100.0
million to accelerate development of the electro-optical
system and integrated communication navigation package, and
mission equipment software development for the second
aircraft.
Medium truck extended service program
The House bill would authorize an additional $9.4 million
for the Marine Corps medium truck variant.
The Senate amendment would add $10.0 million to PE 64604A
for initiation of a five-ton truck extended service program
(ESP), and $9.4 million to PE 26624M for additional medium
truck variants and development of simulation models and
testing.
The conferees agree to provide $1.5 million in PE 64604A
for the Army's five-ton ESP and $3.5 million for the Marine
Corps in PE 26624M for initiation of a medium tactical
vehicle replacement (MTVR).
The conferees agree with the section of the Senate Report
(S. Rept. 104-112) that deals with the medium tactical truck
extended service program, including the requirements for a
report from the Secretary of the Army on the medium truck
ESP.
As the manager of tactical vehicles for the Department of
Defense, the conferees expect the Army to manage the Army
five-ton truck ESP and the Marine Corps MTVR program and
ensure that Air Force and Navy requirements are included in
executing the Army ESP. The conferees expect the Army to take
maximum advantage of medium truck ESP currently underway, to
minimize additional procurements to avoid industrial
overcapacity, and to give consideration to reliable
manufacturers that have demonstrated capabilities to produce
military trucks.
Heavy tactical vehicles
The House bill would provide an increase of $2.75 million
in PE 64622A, $1.9 million for water heater/chiller
development for the Army's water tank semitrailer, and $.85
million for a palletized loading system technology
demonstration.
The Senate amendment would provide an increase of $1.9
million in PE 64622A for water heater/chiller development for
the Army's water tank semitrailer.
The Senate recedes.
High mobility multipurpose wheeled vehicle extended service
program
The Senate amendment would include an increase of $5.0
million in PE 64642A to initiate an extended service program
(ESP) for the high mobility multipurpose wheeled vehicle
(HMMWV).
The conferees recognize that the HMMWV fleet is reaching
age and mileage levels leading to increased maintenance and
operating costs and lower reliability. The conferees agree to
provide an increase of $2.0 million for initiation and
prototype development for HMMWV ESP.
The conferees direct the Secretary of the Army to submit,
with the fiscal year 1997 budget request, a report to the
congressional defense committees that describes a program to
develop and test prototypes, and to initiate a joint program
to remanufacture HMMWV's for the Army and the Marine Corps,
harmonizing their requirements for ESP. The conferees further
direct the Secretary of the Army and the Secretary of the
Navy to ensure this program is fully funded in future
budgets.
Automated test equipment development
The budget request included $5.4 million for automated test
equipment development.
The House bill would authorize an additional $10.0 million
in PE 64746A for the integrated family of test equipment.
The Senate amendment contained no similar provision.
The Senate recedes.
Joint surveillance target attack radar system
The budget request included $18.8 million for the Army and
$169.7 million for the Air Force for the Joint Surveillance
Target Attack Radar System (JSTARS).
The House bill would authorize an increase in the Air Force
requested amount, $14.0 million to establish a NATO program
office and $20.0 million for development of an improved data
modem and satellite communications capability.
The Senate amendment would authorize no additional funding
for these programs.
The conferees agree to authorize an additional $9.5 million
in PE 64770A for the Army Ground Station Module, in support
of the NATO Alliance Ground Surveillance program, and an
additional $24.5 million in PE 64770F, with $4.5 million for
the Air Force portion of the JSTARS NATO Alliance Ground
Surveillance program and $20.0 million for development of an
improved data modem and satellite communications capability.
Weapons and munitions-engineering development
The budget request included $15.9 million for weapons and
munitions-engineering development.
The House bill would authorize an additional $2.7 million
for type classification of a soft mount for the MK-19 and
$1.6 million for the 120mm practice cartridge XM-931 training
round.
The Senate amendment would authorize $0.5 million for type
classification of a non-developmental universal mounting
bracket for the MK-19 grenade machine gun.
The conferees agree to authorize $0.5 million for the type
classification of the MK-19 mounting bracket and $1.6 million
for the 120mm practice cartridge in PE 64802A.
Battlefield combat identification system (BCIS)
The conferees are disappointed with the fiscal constraints
that precluded full funding of the administration's $30.5
million request for non-cooperative target recognition (PE
64817A), particularly in relation to the battlefield combat
identification system (BCIS). Fratricide on the battlefield
is of great concern to our fighting forces, and BCIS is
expected to significantly enhance the Army's ability to deal
with this critical issue. The system has performed extremely
well in Army testing to date, and the program enjoys
widespread support, both within the military services and the
warfighting Commanders-in-Chief. The conferees encourage the
Secretary of the Army to aggressively pursue the program, and
would entertain a reprogramming request to fund additional
BCIS units or accelerated BCIS development.
Joint warfighter interoperability demonstration
The budget request included $46.5 million in PE 65712A for
support of Army operational testing.
The House bill would recommend an additional $1.5 million
for support of a joint warfighter interoperability
demonstration, one of the key fiscal year 1996 funding
shortfalls identified during evaluation of the Department of
the Army budget request.
The Senate amendment would authorize the budget request.
The conferees agree to authorize an additional $1.5 million
in PE 23758A for support of the joint warfighting
interoperability demonstration, as recommended in the House
bill.
Missile/air defense product improvement
The budget request included $17.1 million for the missile/
air defense product improvement program element.
The House bill would authorize an increase of $9.8 million
for the evaluation of Stinger block II.
The Senate amendment would also authorize $9.8 million for
Stinger, and an additional $35.0 million for Patriot cruise
missile defense.
The conferees agree to authorize $61.9 million in PE
23801A, an increase of $44.8 million for both programs.

[[Page H585]]

Instrumented factory for gear development
The budget request did not include funding for the
continuation of the instrumented factory gear (INFAC).
The House bill would authorize an additional $5.0 million
for INFAC in PE 78045A.
The Senate amendment contained no similar provision.
The Senate recedes.
Polycrylonitrile carbon fibers
The budget request did not include funding for
polycrylonitrile (PAN) fiber development.
The House bill would authorize an additional $4.0 million
for PAN fibers in the Army MANTECH program.
The Senate amendment would authorize an additional $4.0
million for PAN fibers in the Army materials technology
program.
The conferees agree to authorize an additional $4.0 million
for this PAN fibers program in PE 78045A.
Rotary winged aircraft repair
The budget request included no funding for manufacturing
technology related to rotary winged aircraft repair.
The House bill would fence $1.5 million of the Army MANTECH
program for technologies related to industrial-academic
partnerships for repair technology development and insertion
for rotary winged aircraft.
The Senate amendment contained no similar provision.
The conferees agree to authorize $1.5 million for the
program in PE 78045A.
Task force XXI soldier
The conferees agree to authorize $30.0 million for a
program that consolidates the Army's Land warrior and
Generation II (GEN II) soldier programs. The conferees agree
to the following adjustment for the purpose of program
consolidation:

Millions
PE 63001A--Logistics Advanced Technology..........................-$4.9
PE 63710A--Night Vision Advanced Technology........................-4.2
PE 63772A--Advanced Tactical Computer Science and Technology.......-5.0
PE 63747A--Soldier Support and Survivability......................-25.9
Task Force XXI Soldier............................................+30.0

The conferees believe that the Army must examine and
consider a full range of alternatives, including expansion of
the dismounted soldier system of the applique program,
execution of the Land Warrior program, and acceleration of
the GEN II advanced technology demonstrator, to the extent
that they support the new consolidated program.
Overview
The budget request for fiscal year 1996 contained an
authorization of $8,204.5 million for Navy, Research and
Development in the Department of Defense. The House bill
would authorize $8,516.5 million. The Senate amendment would
authorize $8,624.2 million. the conferees recommended an
authorization of $8,474.8 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

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Long-range guided projectile technology
The budget request contained $32.7 million for development
and demonstration of the advanced global positioning system/
inertial navigation system (GPS/INS) guidance and control
technology for long range precision guided munitions used by
Navy surface fire support and Army long-range artillery.
The House bill would authorize an additional $9.0 million
to accelerate the development and demonstration of the GPS/
INS.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment.
The conferees agree to an additional $2.0 million in PE
62111N for the purposes indicated in the House report (H.
Rept. 104-131). The conferees are aware of a demonstrated
rapid progress in the development and demonstration of
miniaturized, gun-hardened GPS/INS technology in the Army's
Low-Cost Competent Munition (LCCM) Program, the Navy's
advanced technology demonstration program for an extended
range guided projectile, and the cooperative LCCM technology
program established between Departments of the Army and the
Navy. The conferees believe that the technology may
significantly improve the accuracy of existing and future
gun-fired projectiles, missiles, and rockets, and that an
opportunity exists to accelerate development and
demonstration in these areas. The conferees strongly
encourage increased funding in this area in future Army and
Navy budget requests.
Surface ship technology
The budget request included $36.8 million for surface ship
technology.
The House bill would authorize an additional $6.0 million
for power electronics building blocks and $10.0 million for
advanced submarine technology development.
The Senate amendment would authorize an additional $6.0
million for power electronics building blocks.
The conferees agree to authorize $67.8 million in PE
62121N; an increase of $31.0 million. That authorization
includes $6.0 million for power electronics building blocks,
$10.0 million for advanced submarine technology development
and $15.0 million for curved plate technology for ship
construction.
Power electronic building blocks
The budget request did not include funding for the power
electronic building blocks project.
Both the House bill and the Senate amendment contained $6.0
million in PE 62121N to initiate a power electronics program
based on metal oxide semiconductor (MOS) control thyristors
for high speed switching.
The conferees agree that the program should be affiliated
with academic institutions and, as recommended by the Senate,
involve a computational test bed for system simulation. The
conferees agree that at least one-third of the funding should
be for university participation.
Flat panel, helmet-mounted display
The budget request included $7.0 million in PE 62122N for
exploratory development of air vehicle technology.
The House bill would authorize an additional $2.5 million
to continue exploratory development of flat panel, helmet-
mounted displays for air crew helmets.
The Senate amendment would authorize the budget request.
The Senate recedes.
Communications technology
The budget request included $9.2 million in PE 62232N to
continue development of key communications technologies for
air, ship, and submarine platforms.
The House bill would authorize an additional $4.0 million
for support of wireless and satellite communications research
in the areas of integrated antenna systems, communications
hardware design, communication algorithm development and
high-frequency device modeling and measurements.
The Senate amendment contained no similar recommendation.
The House recedes. The conferees recognize the importance
of continued wireless and satellite communications research
in the areas recommended in the House report (H. Rept. 104-
131).
Air crew adaptive automation technology
The budget request included $40.5 million in PE 62233N for
exploratory development of enabling readiness, training, and
environmental technologies that support the manning,
operation, and maintenance of fleet assets, and that provide
the necessary training, facilities, and equipment to maintain
operational forces in a high state of readiness.
The House bill would authorize an additional $2.7 million
to continue development of adaptable automation technology
for management of air crew workloads.
The Senate amendment would authorize the budget request.
The House recedes.
Embedded sensors
The budget request included $74.8 million in PE 62234N for
exploratory development in the areas of materials,
electronics, and computer technology in support of Navy
advanced weapon and platform systems.
The House bill would authorize an additional $3.0 million
to complete the exploratory development of embedded, remotely
queried, microelectromechanical sensors in thick composites,
which would be suitable for use in submarine, ships, and
armored vehicles.
The Senate amendment would authorize the budget request.
The Senate recedes.
Parametric airborne dipping sonar
The budget request included $51.2 million for exploratory
development of undersea surveillance and weapons technology.
The Senate amendment would authorize an additional $4.8
million in PE 62314N to expand the current scope of the
demonstration and evaluation of parametric sonar technology
to provide three dimensional stabilized steerable beams,
around 360 degrees, at full source level, further
characterize the technology for mine avoidance implications,
and evaluate whether parametric sonar technology merits
further development.
The House bill contained no similar provision.
The House recedes. The conferees agree that the Navy should
complete evaluation of the limited capability laboratory
prototype, in-depth technical review and assessment of the
potential of parametric sonar for helicopter application, and
in-water testing and evaluation of the parametric airborne
dipping sonar prototype.
Polar Ozone Aerosol Monitor III
The budget request included $45.5 million for exploratory
development of oceanographic and atmospheric technology, in
support of joint warfare mission area capabilities.
The House bill would authorize an additional $5.0 million
to complete engineering, integration and test of the Polar
Ozone Aerosol Monitor (POAM) III payload on the SPOT 4
spacecraft, in anticipation of system launch in 1997.
The Senate amendment included no similar provision.
The conferees agree to authorize an additional $2.5 million
in PE 62435N to continue engineering, integration and test of
the POAM III payload on the SPOT 4 spacecraft. The conferees
encourage the Secretary of the Navy to reprogram those funds
necessary to complete the program and launch the POAM III
payload on the SPOT 4 spacecraft in 1997.
Air crew protective clothing and devices
The budget request included $1.7 million in PE 63216N for
demonstration and validation of air crew protective clothing
and devices.
The House bill would authorize an additional $7.4 million
to the budget request to continue development of the advanced
integrated life support system and of an advanced technology
escape system for air crews. The House report (H. Rept. 104-
131) also directed the Navy to provide, by March 2, 1996, a
report that would describe the program plan for these two
programs and the coordination of each plan with programs
under consideration in the Air Force and the Army.
The Senate amendment would authorize the budget request.
The Senate recedes.
The conferees direct the Secretary of the Navy to submit
the report described in the House report (H. Rpt. 104-131).
Air systems and weapons advanced technology
The budget request included $17.1 million for air systems
advanced technology in PE 63217N. The request contained no
specific funding for the maritime avionics subsystems and
technology (MAST) program. MAST is a fiscal year 1995 ``new
start'' that focuses on the development of scaleable, open,
fault-tolerant, and common avionics architectures.
The House bill would authorize an additional $35.0 million
for the advanced anti-radiation guided missile (AARGM). The
House report (H. Rept. 104-131) encouraged the Navy and the
Air Force to pursue the technology objectives of the MAST
program under respective avionics technology development
programs and the Joint Advanced Strike Technology (JAST)
program.
The Senate amendment would authorize an additional $9.0
million for rapid response technologies.
The conferees agree to authorize an additional $35.0
million in PE 63217N for AARGM and $9.0 million for rapid
response technologies for the specific purposes detailed in
the respective House and Senate reports (H. Rept. 104-131; S.
Rept. 104-112). The conferees also agree to authorize an
additional $10.0 million for continuation of the MAST program
in fiscal year 1996, and recommend that the Secretary of the
Navy consider requirements for continuation of the MAST
program in the Navy's fiscal year 1997 budget request.
Mobile off-shore base (MOBS)
The budget request included $14.7 million in PE 63238N to
begin using ARPA developed technology for a mobile offshore
base (MOB) and to initiate sub-scale tests of a complete
system for the purpose of evaluating risks associated with
full scale construction.
The House bill would authorize the budget request. The
House report (H. Rept. 104-131), citing the potential cost of
the MOBS system, noted that the Department of Defense had
failed to comply with guidance provided in the Statement of
Managers (H. Rept. 103-701) accompanying the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103-337).
The House report directed that any fiscal year 1996 funds
authorized and appropriated for MOBS or for the Landing Ship
Quay/Causeway not be obligated until the Department provides
the reports and certification previously directed by
Congress.
The Senate amendment would authorize the budget request.
The House recedes from its restriction on the obligation of
fiscal year 1996 f

[[Page H592]]
unds for the MOBS project. The conferees note, however, the point made
in the House report (H. Rept. 104-131) about the large
potential cost of the MOBS program if carried to completion.
The conferees further note that, in accordance with section
2430, title 10, United States Code, MOBS qualifies as an
Acquisition Category I major defense acquisition program.
Therefore, it is subject to the review and approval
procedures for major defense acquisition programs established
in Department of Defense instructions, regulations, and
procedures. Under these review and approval procedures, a
Milestone 0 (concept exploration and definition) review of
the MOBS project is required by the Defense Acquisition Board
(DAB). The conferees direct the Secretary of Defense to
report to the congressional defense committees, by March 31,
1996, the plan and schedule for incorporating MOBS into the
DAB process and accomplishing a Milestone 0 review.
Medical development
The conferees agreed to authorize an additional $1.0
million (PE 63706N) for acceleration of blood storage
development and an additional $3.0 million (PE 63706N) for
the Naval Biodynamics Laboratory (NBDL) for infrastructure
transfer activities.
Sensor integration and decision support systems
The budget request contained $17.8 million in PE 63707N for
advanced development of manpower, personnel, and training
technology, including $1.1 million for air human factors
engineering.
The House bill would authorize an additional $1.5 million
in PE 63707N for development and evaluation of intelligent,
multi-source, multi-platform sensor integration and cockpit
decision support systems.
The Senate amendment would authorize the budget request.
The House recedes.
Navy advanced technology demonstration
The budget request included $96.8 million in PE 63792N for
advanced development and demonstration of high payoff,
emerging technologies that could significantly improve Navy
warfighting capabilities.
Both the House bill and the Senate amendment would
authorize the budget request.
The conferees agree that the program for advanced
technology demonstration of low cost, highly accurate
guidance and control for improved naval surface fire support
from surface 5" guns shall be fully funded at the level
established in the budget request.
Remote controlled minehunting vehicle
The budget request included $7.6 million in PE 63502N for
development and demonstration of improvements in minehunting
sonar and remotely controlled minehunting systems.
The House bill would authorize an additional $1.65 million
in PE 63502N to accelerate the remote minehunting operational
prototype (RMOP) development program and provide an interim
operational capability to the fleet.
The Senate amendment would authorize an additional $7.5
million in PE 63502N to accelerate development of RMOP.
The Senate recedes. The conferees agree that the mine
detection and location capability demonstrated by the RMOP
vehicle during a joint amphibious exercise in March-April
1995 suggests that it has the potential to fill a gap in the
Navy's mine countermeasures operational capabilities.
Therefore, the conferees conclude that the RMOP program
should be accelerated to provide a contingency capability for
fleet use. The conferees encourage the Secretary of the Navy
to include additional funds for this purpose in the fiscal
year 1997 budget request.
Non-acoustic antisubmarine warfare program
The House bill would authorize $23.2 million to reestablish
a separate Navy non-acoustic antisubmarine warfare (NAASW)
program in PE 63528N that would be on par with the Department
of Defense's advanced sensor applications program.
The Senate amendment contained no funding for a Navy
specific research and development program. However, the
Senate amendment did provide $10.0 million of additional
funding in PE 63714D, the Department of Defense's advanced
sensor applications program, to continue development for a
NAASW program, ATD-111, that is being executed by the Navy.
The conferees authorize an increase of $10.0 million in PE
63528N for the ATD-111 NAASW program. The funding is
authorized to: (1) test system upgrades; (2) correct system
defects identified during field tests; (3) bring the test
systems to a common configuration; and (4) evaluate carriage
on alternate airborne platforms.
The conferees recommend that the Navy conduct a comparative
evaluation of the ATD-111 laser radar (LIDAR) system with
other approaches. Comparative testing of competing non-
acoustic approaches to antisubmarine warfare and other
applications should provide a basis for establishing a firm
requirement for follow-on systems.
The conferees also agree that there is a need for two
viable, independent, but coordinated and complementary NAASW
programs, one in the Navy and one in the Office of the
Secretary of Defense. To reestablish the Navy's independent
NAASW program, the conferees encourage the Secretary of the
Navy to provide funding for it in the fiscal year 1997 budget
request. Further guidance with respect to the NAASW program
is contained in the classified annex.
Advanced submarine technology development
The budget request included $18.4 million in PE 62121N for
exploratory development of submarine systems technology and
$30.9 million in PE 63561N for advanced submarine systems
development.
The House bill would authorize an increase of $10.0 million
in PE 62121N. Of this amount, $7.0 million is to continue the
transfer of technology to the Navy for active control of
machinery platforms demonstrated in the Advanced Research
Projects Agency's (ARPA's) Project M. The House bill would
also authorize an additional $13.1 million in PE 63561N. The
House report (H. Rept. 104-131) expressed concern over the
overall reduction in submarine research and development
funding, reflecting in the budget request, and the belief
that this level of funding would be inadequate to support the
type of long-term research necessary to ensure the
availability of advanced technologies that could maintain the
superior technological capability of the U.S. submarine
force. The House report directed the Secretary of Defense to
develop a plan for long-term submarine research and
development aimed at ensuring U.S. technological superiority
and to report this plan to the congressional defense
committees with the submission of the fiscal year 1997 budget
request.
The Senate amendment would approve the budget request.
The conferees agree to an increase of $10.0 million in PE
62121N. This increase would not include any reservations for
ARPA's Project M. The conferees would authorize the
transition effort associated with Project M in PE 63569E. The
conferees also agree to an increase of $20.0 million in PE
63561N. The conferees would also adopt a provision, discussed
in greater detail in the procurement section of the
conference report, that would direct the Secretary of the
Defense to develop a plan for long-term submarine research
and development aimed at ensuring U.S. technological
superiority and to report this plan to the congressional
defense committees no later than March 15, 1996.
Intercooled recuperated gas turbine engine
The budget request included $25.6 million in PE 63508N, a
technology base program element, for continued development of
the intercooled recuperated (ICR) gas turbine.
The House bill expressed concern that the budget request
had transferred the ICR gas turbine engine from the Advanced
Surface Machinery (ASM) Program (PE 63573N), where it had
been previously budgeted, because of the possibility of
disruption in the relationship between the ICR program and
other elements of the ASM program. In order to restore ASM
program integrity, the House bill would direct the transfer
of $25.6 million from PE 63508N to PE 63573N. Additionally,
the House bill would increase funding for the ICR engine by
$21.5 million to support ICR engine tests at the Navy's land-
based test site and, based on elements of the Navy's revised
ICR development plan, direct the Navy to proceed with a
second 500 hour engine test and other associated testing at
the site.
The Senate amendment also directed transfer of $25.6
million from PE 63508N to PE 63573N, but did not increase
funding for the ICR engine.
The conferees agree to a funding level of $82.9 million in
PE 63573N. The conferees direct that, of the total amount
authorized for PE 63573N, $41.0 million is authorized for the
ICR program.
Cooperative engagement capability
The budget request included $180.0 million in PE 63755N for
development of the cooperative engagement capability (CEC).
The House bill would authorize the requested amount, but
would direct that no more than $102.0 million be obligated
until the Secretary of Defense notifies the congressional
defense committees that the test and evaluation master plan
for the CEC program has been approved by the Director,
Operational Test and Evaluation.
The Senate amendment would add $22.5 million to continue
accelerated development of the airborne component of CEC and
an additional $20.0 million to accelerate joint Army-Navy and
Air Force-Navy exploitation of CEC for cruise missile defense
and theater missile defense.
The conferees agree to an additional $42.5 million for CEC
for the purposes described in Senate amendment. The House
recedes from its funding limitation. The conferees note the
concerns expressed in the House report (H. Rept. 104-131)
regarding developmental testing and independent operational
testing required to insure that the CEC is operationally
effective and suitable when deployed to the fleet. They
direct the Secretary of the Navy to submit to the
congressional defense committees, by March 31, 1996, a report
on the status of plans for developmental and independent
operational testing of the CEC.
Naval surface fire support
The Navy's budget request included $12.0 million in PE
63795N to develop the gun weapon system technology needed by
the Navy to resolve major deficiencies in its ability to
provide naval surface fire support (NSFS) to amphibious
operations.
The House report (H. Rept. 104-131) noted that the budget
request was sharply reduced during the budget formulation
process. It further observed that the future years defense
plan for gun system technology had been left under funded by
over $160 million and did not include an adequate plan to
meet long-term requirements for advanced NSFS weapons
systems. To address these concerns the House bill would
increase funding in PE 63795N by $25.0 million to:
(1) accelerate the development of a long range guided
projectile that would incorporate advanced low cost global
positioning

[[Page H593]]
system/inertial navigation system (GPS/INS) guidance;
(2) improve the existing MK-45 5-inch naval gun; and
(3) permit the Navy to place increased emphasis on
satisfying long-term requirements for advanced gun systems in
addition to its near-term focus on modifications to the MK-45
gun.
The Senate amendment would add $19.2 million to PE 63795N.
The Senate's evaluation noted in the Senate report (S. Rept.
104-112) of the Navy's NSFS program, as reflected in the
budget request, yielded conclusions similar to those of the
House.
The conferees note that in May 1995 the Secretary of the
Navy, based on a recently completed cost and operational
effectiveness analysis (COEA), reported the following
conclusions to Congress regarding NSFS:
(1) a 155 millimeter/60-caliber naval gun, employing
precision guided munitions, is the most cost effective NSFS
solution; and
(2) a combination of guns, missiles, and tactical aviation
is needed to fully meet NSFS requirements.
The Secretary also reported that, as a result of the NSFS
COEA, the Navy's NSFS program had been structured to:
(1) proceed with the long-term development of a 155
millimeter gun;
(2) develop a gun-launched precision guided munition; and
(3) modify the Navy's existing MK-45, 5-inch gun to deal
with long-term and near-term challenges.
However, as reflected in the budget request, affordability
constraints and a desire to field an enhanced NSFS capability
prior to Fiscal Year 2001 have moved the Navy to embrace a
near-term program reflecting the following priorities:
(1) develop a global positioning system/inertial navigation
system 5-inch guided projectile;
(2) improve the existing MK-45 5-inch gun; and
(3) demonstrate the NSFS capabilities of Army Tactical
Missile System (ATACMS), Sea Standoff Land Attack Missile
(SLAM), and STANDARD Missiles.
To confirm the cost effectiveness of this near-term
approach, which was not thoroughly evaluated in the NSFS
COEA, the Navy has directed the Center for Naval Analysis to
perform supplemental analysis to evaluate its cost
effectiveness. The need for this supplemental analysis was
reinforced by the General Accounting Office, which strongly
recommended in May 1995 that the Navy revalidate its NSFS
requirements and conduct a comprehensive supplemental
analysis to the COEA that would include all available gun and
missile alternatives.
The conferees agree to authorize $34.0 million, an increase
of $22.0 million, in PE 63795N. Over the past several years,
the conferees have repeatedly stressed the issue of NSFS, but
have found the Navy's response to be highly variable as new
programs or approaches have succeeded one another from year
to year. Because of a strong need and the Navy's apparent
commitment to pursue the program to completion, the conferees
are willing to provide initial support, in fiscal year 1996,
to the Navy's effort to upgrade the capability of its 5-inch
guns and projectiles. The conferees take this action based on
the Navy leadership's assurances that the Navy will follow
through with consistent, stable, and adequate future years
funding.
The conferees affirm their conclusion that the Navy needs
to place increased emphasis on pursuing a long-term program
to satisfy NSFS mission requirements. The conferees direct
that the Secretary of the Navy include a report on the plans
for such a program in the fiscal year 1997 budget submission.
The conferees also affirm the need for an updated COEA that
considers all available gun and missile alternatives,
including extended range multiple launch rockets and existing
and improved 5-inch guns, to support future acquisition
milestone decisions related to the Navy's near-term and long-
term programs.
AH-1W integrated weapons system upgrade
The budget request included $14.9 million in PE 64212N for
engineering and manufacturing development of upgrades to the
AH-1W Cobra attack helicopter for the Marine Corps.
The House bill recommended a reduction of $11.6 million to
the budget request, based on the understanding that the
Marine Corps had decided to suspend development of the
integrated weapon systems (IWS) for the AH-1W.
The Senate amendment would authorize the budget request.
The House recedes. The conferees understand that the
Department of the Navy has suspended the IWS upgrade, based
on identification of other urgent requirements for
modification of Marine Corps helicopters. The upgrade program
would now focus on the adaptation of both the AH-1W attack
helicopter and the UH-1N utility helicopter, and their
respective power trains, to a 4-blade rotor system which will
increase the operational safety power margin and useful
mission payload of both helicopters. The IWS upgrade for the
AH-1W will be deferred until later in the program. The
conferees further understand, based upon the Department's
analysis, that the revised program will provide growth
potential to bridge the gap until the joint replacement
aircraft would become available around the year 2020, and is
reportedly more cost effective than the adoption of other,
more modern attack and utility helicopters that have already
been fielded or are under development.
The conferees note that the Department plans a defense
acquisition milestone II decision to proceed with engineering
and manufacturing development in late fiscal year 1996 and
also plans to use the fiscal year 1996 funds made available
for the program for pre-milestone IV/II engineering studies.
The conferees are aware of a Department of the Navy
experience with harmonic coupling problems encountered during
a previous major helicopter power train upgrade that
contributed to a number of aircraft mishaps. Accordingly,
this issue must be addressed in detail during pre-milestone
engineering studies and in the milestone II decision process,
and the absence of the problem demonstrated prior to
milestone III. The Secretary of the Navy is directed to
report the results of these engineering studies and the
milestone II decision with the submission of the fiscal year
1998 budget request.
AV-8B Harrier weapons system improvements
The budget request included $11.3 million in PE 64214N for
integration and testing of weapons and aircraft improvements
for the AV-8B Harrier aircraft.
The House bill would authorize an increase of $15.6 million
to the budget request to support the United States' share of
the AV-8B production memorandum of understanding between the
United States, Spain, and Italy, and for concurrent
integration of the AIM-120 missile and 1760 data bus during
remanufacture of the day-only AV-8As to the AV-8B radar
configuration.
The Senate amendment would authorize the budget request.
The Senate recedes. The conferees agree to authorize the
increase of $15.6 million to the budget request with the
understanding that the Department of the Navy would include
in the fiscal year 1997 budget request the balance of the
$11.7 million required by the memorandum of understanding.
S-3B Project Gray Wolf
The budget request included $12.9 million in PE 64217N for
continued development of weapon system improvements for the
S-3 aircraft.
The House bill would authorize an additional $15.0 million
for continued evaluation and potential establishment of an
advanced concept technology demonstration of ``Project Gray
Wolf'', a fleet proof of concept demonstration of the ability
of an S-3B aircraft equipped with a multi-mode synthetic
aperture radar designed to provide real time stand-off
surveillance, targeting, and strike support for littoral
operations.
The Senate amendment would authorize an additional $13.2
million for the same purpose.
The conferees agree to authorize the requested amount.
The conferees agree that ``Project Gray Wolf'' demonstrates
potential for providing the Department of the Navy with a
versatile carrier-based capability to provide real time,
stand-off surveillance, targeting, and strike support. The
conferees encourage the Secretary of the Navy to consider a
reprogramming request to support this program, should any
funds become available during fiscal year 1996. The conferees
further encourage the Secretary to include funds for the
program in his fiscal year 1997 budget request.
P-3 maritime patrol aircraft sensor integration
The budget request included $1.9 million in PE 64221N for
the P-3 maritime patrol aircraft (MPA) modernization program.
The House bill would authorize an increase of $15.0 million
to the budget request. That increase would include $12.0
million to restore the schedule for integration of the
improved extended echo ranging (IEER) and the anti-surface
warfare improvement program (AIP) capabilities in the P-3,
and $3.0 million for upgrade of P-3 stores management, to
permit integration of advanced weapons systems. In relation
to the fiscal year 1995 budget projections for fiscal year
1996, the House report (H. Rept. 104-131) noted that sharp
funding reductions in the P-3 modernization program would
result in an overall program cost increase and multi-year
delays in fielding capability improvements needed to offset
decreases in MPA force structure. The House report also
expressed the House's expectation that the Navy's future
budget requests would include the increased funding necessary
to complete the IEER and AIP capabilities integration in the
P-3, the P-3 stores management upgrades, and procurement of
sufficient quantities of the AIP and update III kits to
appropriately outfit the active and reserve MPA force.
The Senate amendment would authorize the budget request.
The Senate recedes.
Air crew systems development
The budget request included $9.8 million in PE 64264N for
the development of aviation life support systems for air
crews.
The House bill would authorize an increase of $7.9 million
to transition the Navy's Day/Night/All Weather Helmet Mounted
Display to operational evaluation in F/A-18 and AV-8B
aircraft, to upgrade current escape systems, and to develop
crashworthy troop seats in the H-1, H-3 and H-46 helicopters.
The Senate amendment would authorize the budget request.
The Senate recedes.
AEGIS combat systems engineering
The budget request included $105.9 million in PE 64307N,
including $90.0 million for continued development of
improvements in the AEGIS combat system.
The House bill would authorize $89.9 million, a reduction
of $15.8 million from the requested amount. In support of the
funding

[[Page H594]]
reduction, the House report (H. Rept. 104-131) cited the deferred
release of fiscal year 1995 funds, which led to a
corresponding, but unnecessary, increase in the Navy's budget
request. The House report (H. Rept. 104-131) also expressed
concern about the Navy's revised strategy for development of
the AEGIS baseline 6.
The Senate amendment would authorize the requested amount.
The conferees agree to a reduction of $11.0 million in PE
64307N for AEGIS combat systems engineering. The conferees
note that the Navy included the $11.0 million in its budget
request in anticipation of losing $15.8 million of fiscal
year 1995 funds through the omnibus reprogramming process.
The use of these fiscal year 1995 funds as a reprogramming
source has been specifically denied by Congress. The
conferees direct the Office of the Secretary of Defense to
return these funds to the Navy without delay to permit
orderly execution of the AEGIS program. Further, the navy
should review its program for development of the AEGIS
baseline 6 with a view to minimizing concurrency.
Enhanced modular signal processor
The budget request included $8.3 million in PE 64507N for
development and risk mitigation testing of the AN/UYS-2
enhanced modular signal processor (EMSP) and software
development, integration, testing, and critical engineering
design support in the airborne low-frequency sonar (ALFS),
surveillance towed array sensor system (SURTASS), AN/SQQ-89
surface combat system, and AN/BSY-2 submarine combat system.
Both the House bill and the Senate amendment would
authorize the budget request.
The conferees understand that the Navy is considering
development of a commercial-off-the-shelf (COTS) variant of
the EMSP, as discussed in the House report (H. Rept. 104-
131). The conferees authorize an increase of $6.5 million in
PE 64507N for development of this COTS variant. The conferees
encourage the Navy to include additional funds that may be
required to complete the EMSP COTS development in its fiscal
year 1997 budget request.
Submarine combat system
The budget request included $42.3 million in PE 64524N for
development of the AN/BSY-2 submarine combat system.
The House bill would reduce the authorization by $6.2
million, the amount requested for delivery of the AN/BSY-2
system for the SSN-23.
The Senate amendment would authorize the budget request.
The House recedes.
Submarine tactical warfare system
The budget request included $38.5 million in PE 64562N for
continued development of improvements in SSN combat control
systems.
The House bill recommended a reduction of $18.0 million to
the budget request.
The Senate amendment would authorize the requested amount.
The House recedes.
Advanced tactical air command central
The budget request included $8.4 million in PE 604719M to
continue development of the advanced tactical air command
central (ATACC) for the Marine Corps.
The House bill would reduce the PE by $5.0 million and
direct that the details of the operational requirement and a
revised program plan be provided with the fiscal year 1997
budget request. The house report (H. Rept. 104-131) expressed
concerns regarding the marked growth in program costs for
fiscal year 1996 and succeeding years, changes in the
acquisition strategy, and significant revisions in the
program schedule. These concerns raise questions regarding
how well the operational requirement is defined and whether
the system should continue in engineering and manufacturing
systems development, or whether a demonstration/validation
program would be more appropriate.
The Senate amendment would authorize the requested amount.
The House recedes.
The conferees agree that the concerns expressed by the
House should be addressed following submission of the fiscal
year 1997 defense budget request.
Ship self-defense system

summary

The budget request included $166.0 million in PE 64755N for
the ship self-defense program.
The House bill would approve the budget request. The House
report (H. Rept. 104-131) expressed concern that the Navy had
failed to include funding in its budget request to continue
development of either the infrared search and track (IRST)
system or NULKA, an electronic warfare countermeasures
system, despite the apparently high priority that the Navy
has placed on these systems in the past. The House report
argued that such funding lapses point to the absence of
clearly defined program baselines in the ship self-defense
programs.
The Senate amendment would authorize $184.5 million in PE
64755N, an increase of $18.5 million. It would authorize an
additional $9.5 million for IRST and $9.0 million for NULKA.
The Senate report (S. Rept. 104-112) also discussed
evaluation of existing self-defense systems, such as the
BARAK 1 missile system, for installation on active and new
construction Navy ships.
The conferees agree to authorize $183.5 million for the
ship self-defense program in PE 64755N. Funding increases and
areas of emphasis are discussed in the following paragraphs.
The conferees also agree that the year-to-year volatility of
the Navy's budget requests for ship self-defense programs
appear to contradict the Navy's oft stated emphasis on
littoral warfare. Therefore, the conferees direct the
Secretary of the Navy to provide to the congressional defense
committees, as a part of the annual update of the ``Ship
Anti-Air Warfare (AAW) Report'', an assessment of progress in
establishing program baselines for the ship self-defense
program and the degree to which these baselines are being
met.

irst

The budget requested reduced funding for and restructured
the infrared search and track (IRST) program for
affordability reasons. The conferees believe that the IRST
system has the potential to play a very important role in
defending naval ships against sea skimming antiship missiles.
A recently completed cost and operational effectiveness
analysis (COEA) supports this conclusion. The conferees agree
that the Navy should emphasize early integration of the IRST
system with both Aegis and non-Aegis ships, and place
priority on early completion of its development. Therefore,
the conferees authorize an increase of $9.5 million in PE
64755N to accelerate plans for combat system integration and
design of the IRST system.

nulka

NULKA is a joint United States/Australian project to
develop an anti-ship missile decoy system. Increased funding
in fiscal year 1996 would allow the Navy to integrate NULKA
with the ship self-defense system (SSDS), for installation on
amphibious ships and other self-defense ships, to conduct
testing of the integrated system, and to commence development
of improvements to the payload needed to counter improvements
in anti-ship missile technology. The conferees strongly
support these objectives and authorize an increase of $8.0
million in PE 64755N.

barak 1

The Senate report expressed concern about the need to
protect Navy ships from the proliferation of maneuvering,
sea-skimming, low observable, anti-ship cruise missiles. It
also recognizes the fact that the Navy's evaluation of
existing systems, such as the BARAK 1 missile, as candidates
for the LPD-17 class's self-defense suite, could produce the
most cost-effective solution to this threat. Development
costs could be avoided through such an approach.
While addressing ship self-defense in some detail, the
House report did not discuss this aspect of the requirement.
The conferees agree that the incorporation of weapons
systems that are already in production, such as BARAK 1, into
the combat systems of active or new construction ships could
be a cost effective means to deal with a rapidly
proliferating and evolving cruise missile threat. The
conferees desire to be kept informed on the progress and
results of the LPD-17 cost and operational effectiveness
analysis (COEA). Furthermore, the conferees direct the Navy
to present, by February 1996, a plan that could lead to
testing of the BARAK 1 system in the United States during
fiscal year 1996, should the LPD-17 COEA demonstrate that
self-defense systems such as BARAK 1 would be cost effective.
Because of the advantage to the fleet of an early
deployment of a robust ship self-defense system, the
committee directs the Navy to also examine and report on
BARAK 1 applicability to other ship classes. The results of
this analysis should be provided to the congressional defense
committees by February 1996.
Fixed distributed system--deployable
The budget request included $93.5 million in PE 64784N for
the fixed distribution surveillance system (FDS), but
included no funding for the deployable (FDS-D) prototype.
The House bill would add $10.0 million to the budget
request to refurbish the FDS-D prototype and improve its
capability to provide an interim deployable undersea
surveillance, until the Advanced Deployable System becomes
available.
The Senate amendment would authorize the budget request.
The conferees authorize $103.5 million in PE 64784N, of
which $10.0 million would be used to refurbish the FDS-D
prototype and improve its surveillance capability. Further
guidance is contained in the classified annex.
SSBN security and survivability program
The budget request included $25.1 million in PE 12224N for
the SSBN security and survivability program.
The House bill would provide an increase of $9.5 million to
the budget request. The House bill would also direct the
Secretary of the Navy to provide to the congressional defense
committees, within 60 days of enactment, an assessment of the
potential threat to the U.S. SSBN force an analysis of the
SSBN security program needed to counter that threat.
The Senate amendment would authorize the budget request.
The conferees agree to authorize an additional $5.5 million
in PE 12224N for the SSBN security and survivability program.
The conferees agree with the House direction to the Secretary
of Defense regarding the SSBN security program, contained in
the House report (H. Rept. 104-131). Further guidance
regarding the program is provided in the classified annex.

[[Page H595]]

Cryptologic system trainer
The budget request included $7.0 million in PE 24571N to
continue development and evaluation of the Navy's surface
tactical team trainer.
The House bill would authorize an additional $3.0 million
for:
(1) integration and evaluation of the cryptologic systems
trainer in the battle force tactical training system; and
(2) the development of related information warfare/command
and control warfare shipboard training systems.
The Senate amendment would authorize the budget request.
The conferees authorize $10.0 million in PE 24571N. Of this
amount, $3.0 million is for the purposes discussed in the
House report (H. Rept. 104-131).
Optoelectronics
The budget request did not include funding for
optoelectronics manufacturing.
The House bill would provide $10.0 million to initiate
partnerships with industry, government laboratories and other
research organizations to allow the development of
manufacturing technologies that would support optoelectronics
devices and components.
The Senate amendment contained no similar provision.
The conferees agree to authorize an additional $10.0
million for this program in PE 78011N. The conferees also
agree to authorize an additional $2.0 million for advanced
bulk manufacturing of mercury cadmium telluride (MCT) for low
cost sensors, also in PE 78011N.
Overview
The budget request for fiscal year 1996 contained an
authorization of $12,598.4 million for Air Force, Research
and Development in the Department of Defense. The House bill
would authorize $13,184.1 million. The Senate amendment would
authorize $13,087.4 million. The conferees recommended an
authorization of $12,914.9 million. Unless noted explicitly
in the statement of managers, all changes are made without
prejudice.

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Defense research sciences
The budget request included $239.893 million for defense
research sciences in PE 61102F.
The House bill would authorize an additional $5.0 million
for adaptive optics research.
The Senate amendment would reduce the budget request by
$9.0 million and authorize $5.0 million for adaptive optics
research.
The conferees agree, that of the $249.5 million authorized
in this program element, $5.0 million shall be authorized for
adaptive optics research.
Robotics corrosion inspection system
The House bill would authorize $8.0 million in PE 62102F to
conduct a competitive program to demonstrate the feasibility
of non-contact robotic corrosion inspection for detection of
hidden corrosion and metal fatigue.
The Senate amendment did not include such authorization.
The conferees strongly encourage the Air Force to consider
environmentally benign technologies that demonstrate the
potential to provide a 25 percent savings in cargo and
fighter aircraft inspection and repair costs through the use
of non-contact robotic corrosion inspection.
Firefighting clothing
The conferees encourage the Department of Defense to
continue to make greater use of commercial off-the-shelf
technologies that meet military requirements without
extensive development programs. The conferees are aware of
recent commercial developments in thermal absorbing materials
that would have the potential to significantly increase
personnel protection for fighting aircraft, ship-board, and
chemical fires. Accordingly, the conferees authorize an
additional $1.25 million in PE 62201F for the development of
a firefighting suit that would incorporate these
technologies.
Aerospace propulsion
The budget request included $3.7 million in PE 62203F for
the high thermal stability and the endothermic hydrocarbon
fuels project 3048.
The House bill and Senate amendment would authorize an
additional $3.0 million for the acceleration of this project.
The conferees agree that of the $75.0 million authorized
for this program element that $6.7 million be authorized for
project 3048.
High frequency active auroral research program (HAARP)
The conferees agree to a $5.0 million increase in PE 62601F
for the high frequency active auroral research program
(HAARP).
Rocket propulsion technology
The House bill would authorize an additional $13.0 million
for rocket propulsion technology programs in PE 62601F, PE
63302F, and PE 62111N.
The Senate amendment contained no similar provision.
The conferees agree to provide an additional $13.0 million,
as specified in the House report (H. Rept. 104-131).
Computer security
The budget request included $98.5 million for Command,
Control, and Communications in PE 62702F.
The House bill would authorize an additional $3.0 million
to evaluate voice recognition computer security systems.
The Senate amendment contained no similar authorization.
The conferees direct that, of the $96.5 million authorized,
$3.0 million be authorized for evaluation of voice
recognition computer security systems, as specified in the
House report (H. Rept. 104-131).
Aircraft ejection seats
The budget request included $19.0 million in PE 63231F for
crew systems and personnel protection technology.
The House bill would authorize an additional $3.0 million
to test existing Navy, Marine Corps, and Air Force front-line
trainer and tactical aircraft ejection seats. Ejection seat
tests would be conducted to verify predicted performance and
to identify existing problems and the required corrective
action.
The Senate amendment had no similar provision.
The conferees agree to authorize an additional $3.0 million
in PE 63231F for the purposes specified in the House report
(H. Rept. 104-131).
Micro-satellite development program
The budget request included $32.6 million in PE 63401F for
Advanced Spacecraft Technology.
The Senate amendment would authorize an additional $20.0
million for a micro-satellite development program.
The House bill would authorize the budget request.
The House recedes.
The Air Force Phillips Laboratory, in conjunction with the
Air Force Space Command's Space Warfare Center, has initiated
a small satellite program to develop and demonstrate a
variety of miniaturized space technologies. The micro-
satellite program builds upon the highly successful
Clementine satellite program. The conferees strongly support
this effort and direct that it be placed under the control of
the Space Warfare Center and be executed by the Clementine
Team (Phillips Laboratory, Naval Research Laboratory, and
Lawrence Livermore National Laboratory).
Intercontinental ballistic missile (ICBM) research and
development and associated issues

icbm demonstration/validation

The budget request included $20.3 million in PE 63851F for
six Minuteman-related projects.
The House bill would authorize an additional $14.5 million
to complete acquisition and requirement documentation efforts
and to conduct missile guidance technology experiments. The
House report (H. Rept. 104-131) expressed concern that the
budget request failed to include pre-milestone 0 and phase 0
funding for the command signal decoder, the modified
miniature receive terminal for launch control centers, the
safety enhanced reentry vehicle, and inertial measurement
modifications.
The Senate amendment would authorize an additional $4.3
million to bolster the Air Force reentry vehicle applications
project. The Senate report (S. Rept. 104-112) expressed
concern that the reentry vehicle nose tip requirements were
not adequately funded.
The conferees agree to authorize the budget request. The
conferees also reiterate the concerns expressed in the House
and Senate reports. The conferees understand that the Air
Force is considering options to address these concerns from
within their existing fiscal year 1996 budget, in particular
the documentation issues identified in the House report. The
conferees strongly urge the Air Force to fulfill these
requirements.

icbm engineering and manufacturing development

The budget request contained $192.7 million in PE 64851F to
fund the Minuteman guidance and propulsion replacement
programs.
The House bill would authorize an additional $8.0 million
to fund the initial integration design and testing of the
capability to integrate the Mk21 warhead on the new Minuteman
guidance set. The House report (H. Rept. 104-131) endorsed
using the Mk21, the safest warhead in the inventory, on the
Minuteman, if and when it becomes available as a result of
arms control treaties. The House report expressed concern
that the current guidance replacement program fails to fund
the design and testing necessary to ensure the Mk21
capability prior to initiation of the guidance set
production.
The Senate amendment would authorize the budget request.
The conferees agree to authorize the budget request. The
conferees, however, reiterate the concerns expressed in the
House report (H. Rept. 104-131), and support the
recommendations made therein. The conferees are concerned
that the Department of Defense and the Air Force have failed
to take the necessary action to ensure that the safest
nuclear warheads are compatible with the new Minuteman
guidance sets. Therefore, the conferees direct that, of the
funds authorized for fiscal year 1996 in PE 64851F, up to
$4.0 million shall be available to initiate efforts to ensure
that the new Minuteman guidance sets are capable of
accommodating the Mk21 warhead. The conferees further direct
the Secretary of Defense to ensure that the funds necessary
to continue this effort are included in the fiscal year 1997
budget request.

reentry vehicle materials

The Senate amendment would authorize $750,000 above the
budget request in PE 62102F for the Thermal Protection
Materials Reentry Vehicle project to purchase, test, and
evaluate three nose tip billets and related technologies.
The House bill would not authorize additional funds for
reentry vehicle materials.
The Senate recedes. Nevertheless, the conferees reiterate
the concerns expressed in the Senate report (S. Rept. 104-
112) regarding the adequacy of the reentry vehicle
applications program, and, in particular, the reentry vehicle
materials program. Therefore, the conferees direct that, of
the funds available in PE 62102F, up to $750,000 shall be
available for the Thermal Protection Materials Reentry
Vehicle project to purchase, test, and evaluate three ICBM
reentry vehicle nose tip billets and related thermal
technologies.

ballistic missile technology

The budget request contained $3.1 million in PE 63311F to
conduct guidance and range safety technology experiments.
The House bill would authorize an additional $5.7 million
for Minuteman class range tracking and safety equipment based
on Global Positioning System (GPS) equipment developments.
The Senate amendment would authorize an additional $5.0
million for suborbital flight testing conducted at White
Sands Missile Range for ballistic missile guidance, range
tracking, and safety equipment, based on existing GPS
equipment.
The conferees agree to authorize $5.7 million above the
budget request to enhance ballistic missile technology
experiments and to proceed with a follow-on to the successful
Missile Technology Demonstration Flight 1 (MTD-1). The
conferees commend the participants in this joint effort and
encourage the Air Force, the Ballistic Missile Defense
Organization, the Defense Nuclear Agency, and the Phillips
Laboratory to continue to pursue such joint efforts. Prior to
completing plans for a MTD follow-on, the conferees direct
the Air Force to consult with the Senate Committee on Armed
Services and the House Committee on National Security on

[[Page H603]]
the issues and options associated with the following: (1) the
technologies to be tested; (2) the type of booster
configuration to be employed; and (3) the test range to be
used.

peacekeeper contingency planning

The conferees direct the Secretary of the Air Force to
submit a report to the congressional defense committees, by
March 1, 1996, that outlines the Air Force's current plans
for retiring Peacekeeper, and maintaining the system in the
interim. The report should also address the additional
actions and funding that would be required to maintain the
option of retaining up to 50 Peacekeeper ICBMs in an
operational status beyond 2003. The report should include a
timetable that outlines when such actions and funding would
be needed.
Weapon impact assessment system
The conferees are aware of innovative technologies that may
significantly resolve the battlefield damage assessment
problems related to tactical aviation. The conferees support
the priorities established in the fiscal year 1996 Department
of Defense Small Business Innovative Research Program
solicitation (96.1) to expeditiously pursue weapon impact
assessment technology. Accordingly, the conferees authorize
$950,000, distributed equally between PE 64618N and PE
64618F, for a joint Navy-Air Force flight demonstration of a
weapon impact assessment system that uses a video sensor-
transmitter with precision guided munitions.
Stand-off land attack missiles
The budget request contained $40.5 million in PE 64603N for
continued development of the stand-off land attack missile-
enhanced response (SLAM-ER) as an interim replacement for the
canceled tri-service stand-off attack missile (TSSAM) for the
Navy.
The House bill would authorize the budget request for SLAM-
ER. However, the House report (H. Rept. 104-131) would
prohibit the Navy from obligating more than $10.0 million for
the program without specific approval by the congressional
defense committees.
The House bill would also provide an additional $37.5
million in PE 64312N for the Navy and an additional $37.5
million in PE 27160F for the Air Force to establish a joint
program for accelerated development and evaluation of
candidate joint air-to-surface stand-off missile (JASSM)
systems as a near-term replacement for TSSAM. The House
report would direct the Secretary of Defense to establish
immediately such a program and would further direct the
Secretary to report to the congressional defense committees
within 60 days of the enactment of the Act on:
(1) the Department's plan to address near-term Navy and Air
Force requirements for an interim TSSAM replacement;
(2) the Department's plans to satisfy these near-term
requirements; and
(3) the long-term plan for development of a TSSAM
replacement that will satisfy the requirements of both
services.
The Senate amendment would authorize the budget request in
PE 64603N for continued development of SLAM-ER, and would
provide an additional $50.0 million for the Air Force in PE
27160F to initiate a JASSM program, with the expectation that
the Department of Defense would establish a joint program to
meet Air Force and Navy needs for a replacement for TSSAM.
The House recedes with an amendment. The conferees agree
to:
(1) authorize the SLAM-ER budget request;
(2) provide $25.0 million for JASSM in the Air Force
budget; and
(3) require the Department to report on plans for meeting
near-term and long-term Air Force and Navy requirements for
stand-off weapons systems.

joint air-to-surface stand-off missile (jassm)

In testimony before the Congress this year, the Air Force
and the Navy continued to support the requirement for a
survivable, precision strike stand-off weapon. The DOD
decision to cancel the TSSAM program exacerbated an already
significant shortfall in this capability. The conferees
stress the urgent need for the operational capability that
would be provided by the TSSAM, and expect the Secretary of
Defense to establish a joint program in the Air Force and the
Navy for development of a TSSAM replacement, as recommended
in both the House report (H. Rept. 104-131) and the Senate
report (S. Rept. 104-112).
The conferees are concerned about the approach the services
may pursue to fulfill the JASSM requirement. The conferees
note that there are a number of competing alternatives upon
which the JASSM could be based. The conferees believe that
JASSM could evolve from a existing, or planned interim
weapons system. The conferees believe that, if the Department
decides that a new weapon development is appropriate, the new
development program should be based on technologies that have
already been developed in the TSSAM program, or in other
existing or planned stand-off weapons systems, including
technologies relating to low and very low observability/
stealth.
The conferees note that there are a number of competing
alternatives upon which the JASSM could be based, and want to
ensure that due consideration is given to all competing
approaches. Therefore, the conferees direct the Department to
consider the following in conducting the JASSM program: (1)
the results of the TSSAM development program, and the
potential for using technology and components derived from
that program; and (2) the results of programs for development
of other stand-off weapons systems, and the potential for
using technologies derived from those programs. The conferees
direct the Secretary of Defense to include, in his report on
precision guided munitions, information on the extent to
which the Department may avail itself of TSSAM-derivative
components and technology, as well as, components and
technologies derived from other stand-off weapons programs,
in meeting the JASSM requirement.

required report

The conferees direct the Secretary of Defense to include in
the report on the analysis required by the provision on
precision guided munitions, the Department's plan for meeting
near-term Navy and Air Force requirements for an interim
TSSAM replacement and the long-term plan for development of a
TSSAM replacement that will meet the requirements of both
services. The conferees expect that the Department would
establish the following for JASSM weapons system at the next
milestone: design-to-unit cost goals; minimum performance
parameters; and interface requirements between JASSM and
launch platforms.
Mobile missile launch detection and tracking
The conferees are aware of a proposal to use specialized
processing techniques on synthetic aperture radar data to
detect medium-rage ballistic missiles shortly after launch.
The conferees urge the Air Force to consider this promising
concept and agree to authorize the use of up to $1.0 million
in funds made available in PE 28060F to demonstrate the
feasibility of this concept.
Rivet joint technology transfer program
The Senate amendment recommended a $28.0 million increase
to the theater missile defense program element (PE 28060F) to
initiate the migration of the Cobra Ball medium wave infrared
acquisition technology for the Rivet Joint RC-135 tactical
reconnaissance fleet.
The House bill did not contain a similar recommendation.
The Senate recedes.
The conferees encourage the Air Force to move forward with
this near term, cost effective program. With the transfer of
this mature technology, the Rivet Joint fleet would offer
early deployment and provide a significant improvement to the
Department of Defense's capabilities in long range
surveillance, warning, rapid cueing for attack operations,
and impact point prediction. To achieve this goal, the
conferees would consider a reprogramming in fiscal year 1996.
The conferees understand that funds for the completion of
this technology migration are included in the Air Force
future year defense plans for this program.
Information systems security
The budget request included $11.3 million in PE 33140F for
the Air Force's Information Systems Security program.
The Senate amendment would authorize an additional $1.5
million to complete research and development of the Trusted
RUBIX multi-level security database management system.
The House bill would authorize the budget request.
The House recedes.
Computer-assisted technology transfer
The conferees agree to authorize $7.2 million in PE 78011F
to continue the computer-assisted technology transfer
program.
Overview
The budget request for fiscal year 1996 contained an
authorization of $8,802.9 million for Defense-Wide, Research
and Development in the Department of Defense. The House bill
would authorize $9,287.1 million. The Senate amendment would
authorize $9,271.2 million. The conferees recommended an
authorization of $9,419.5 million. Unless noted explicity in
the statement of managers, all changes are made without
prejudice.

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University research initiative
The budget request included $236.2 million in PE 61103D.
The House bill would authorize an additional $20.0 million
above the requested amount for the continuation of the
Defense Experimental Program to Stimulate Competitive
Research (DEPSCoR).
The Senate amendment would apply a general reduction of
$15.0 million to the requested amount and would add $10.0
million for the acceleration of research activities at
universities affecting combat readiness. The Senate amendment
would also authorize $10.0 million within the authorized
amount for the continuation of the DODDS Director's fund for
Science, Mathematics, and Engineering.
The conferees agree to an authorization of $231.2 million
in PE 61103D, of which $20.0 million shall be for the
continuation of the DEPSCoR program and $10.0 million for the
continuation of the DODDS Director's fund for Science,
Mathematics and Engineering. The conferees also agree to
authorize an additional $10.0 million for the Combat
Readiness Research program described on page 169 of the
Senate report (104-112) and direct that an institution
awarded a contract, grant or agreement under the program be
required to contribute at least three times the amount
provided by the Federal government to execute the program.
Chemical-biological defense program
The budget request contained $383.5 million for the
Department of Defense chemical-biological defense program,
including $243.0 million for research, development, test and
evaluation and $140.5 million for procurement of chemical and
biological defense non-medical and medical systems.
The House bill would authorize a $57.1 million increase to
the budget request for the following chemical-biological
defense research and development programs: $4.6 million for
PE 61384BP; $23.5 million for PE 62384BP; $12.6 million for
PE 63384BP; $4.4 million for PE 63884BP; and $12.0 million
for PE 64384BP. The House bill would also authorize a total
of an additional $50.0 million in operations and maintenance
funding for chemical defense training and chemical medical
defense training in the Army, Navy, Marine Corps, and Air
Force.
The Senate amendment would authorize the budget request.
The conferees agree to authorize an increase to the budget
request in the following program elements: $4.6 million for
PE 61384BP; $7.8 million for PE 62384BP; $10.0 million for PE
63384BP; and $1.6 million for PE 63884BP. The increased
authorizations would augment and accelerate research and
development in medical and non-medical chemical and
biological defense. Prior to obligation or expenditure of
funds authorized above the budget request, the conferees
direct the Department to report on the projected use of these
funds.
The conferees also agree to a $50.0 million increase in the
military services operations and maintenance accounts for
chemical defense training and chemical medical defense
training. The conferees direct the Department to provide a
report to Congress on the use of this increased funding in
the Department's chemical defense training and chemical
medical defense training. Additionally, the Department is
directed to notify Congress 15 days in advance of obligation
or expenditure of funds, and to provide a justification for
the use of such funds in connection with the procurement of
chemical-biological defense equipment.
Computing systems and communications technology
The budget request included $403.9 million for computing
systems and communications technology in PE 62301E.
The House bill would reduce the budget request by $25.0
million. The House bill would authorize an additional $11.0
million for accelerated development of improved nuclear
detection and forensic analysis capabilities.
The Senate amendment would authorize an additional $3.0
million for software reuse activities and $30.0 million in
procurement for the global broadcast service.
The conferees agree to authorize $396.3 million in PE
62301E, to include: $11.0 million for nuclear monitoring and
detection; $8.0 million for global broadcast service; $7.5
million for software reuse; and a general reduction of $29.6
million.
Global broadcast service
The budget request contained no funds for global broadcast
service (GBS).
The Senate amendment would authorize $30.0 million in
weapons procurement, Navy, for a GBS pilot program. The
Senate report (S. Rept. 104-112) endorsed insertion of this
technology into the military communications master plan and
the Navy's proposal to use the ultra-high frequency follow-on
(UFO) satellite system as a host for an interim GBS
capability.
Neither the House bill nor the House report (H. Rept. 104-
131) addressed the subject.
The Senate recedes on the $30.0 million authorization in
weapons procurement, Navy. The conferees, however, agree to
authorize $8.0 million for fiscal year 1996 in PE 62301E to
support this effort.
The conferees endorse the Senate language regarding the
insertion of DBS/GBS technology into the communications
master plan. The conferees, however, do not believe that the
Department of Defense (DOD) has adequately evaluated all
alternatives and associated issues. The conferees support
proceeding swiftly with this program, but require additional
information before endorsing any particular technical
approach or acquisition strategy.
The conferees are aware of the time-sensitivity surrounding
the Navy's proposal to use UFO satellites 8, 9, and 10 as
host platforms, and that a protracted period of study and
review may preclude this option (insofar as it is dependent
on use of satellite 8, which is currently scheduled to be
launched no later than December 1997). The conferees are also
aware that the Deputy Under Secretary of Defense for Space
has tentatively endorsed the UFO approach as an interim
bridge to an objective GBS system.
Nonetheless, the conferees remain concerned that no
detailed analysis of options and requirements has been
presented to Congress. Not wanting to prematurely endorse any
particular GBS option nor preclude any promising alternative,
the conferees direct the Under Secretary of Defense for
Acquisition and Technology to submit a report to the
congressional defense committees that addresses the following
issues regarding the development and deployment of interim
and objective GBS capabilities: (1) the military requirement
to be satisfied; (2) the cost, schedule, technical risk, and
operational effectiveness of all hosted and free-flyer
options; (3) the issues involved with the use of competitive
procedures or other than competitive procedures; and (4) the
role of GBS capabilities in the DOD's future military
satellite communications architecture and the Department's
strategy for acquiring and integrating such capabilities.
The conferees encourage early involvement by the
Commanders-in-Chief (CINCs) to ensure that GBS capabilities
support a broad range of joint missions in the CINCs' areas
of responsibility. The conferees also believe that the Under
Secretary for Acquisition and Technology should conduct a
broad survey of the capabilities and views of industry prior
to selecting a particular technical approach or acquisition
strategy.
Once the congressional defense committees have received the
report described above, the conferees would consider a
reprogramming request to satisfy any outstanding fiscal year
1996 funding requirements. The conferees' approval of such a
request would depend largely on the content of the report
submitted, the offsets identified, and the degree to which
the chosen GBS acquisition strategy is funded in the
Secretary of Defense's fiscal year 1997 budget request and
Future Years Defense Program.
Materials and electronics technology
The budget request included $226.1 million for material and
electronics technology.
The House bill would authorize an additional $3.0 million
for chemical vapor deposition (CVD) and $2.0 million for
chemical vapor composite (CVC) deposition. The bill would
also provide an additional $5.0 million for higher transition
temperature superconducting (HTS) materials, $7.5 million for
seamless high off-chip connectivity (SHOCC) and $10.0 million
for non-woven aramide fiber packaging.
The Senate amendment would authorize an additional $8.0
million for CVD and $8.0 million for HTS.
The conferees agree to authorize $242.0 million in PE
62712E, an increase of $16.0 million. This increase provides
$4.0 million each for CVC deposition and CVD diamond material
development and $8.0 million for HTS. The HTS authorization
shall include HTS wire applications and precision band pass
filters and high ``Q'' antennae for military communication
systems that operate in signal rich environments.
Counterterror technical support
The budget request included $12.0 million for the
counterterror technical support program.
The House bill would authorize the budget request.
The Senate amendment would authorize an increase of $2.0
million to the budget request for the continued development
of pulsed fast neutron analysis (PFNA) cargo inspection
technology.
The House recedes.
Joint Department of Defense/Department of Energy munitions
technology development
The budget request included $16.8 million for the joint
Department of Defense and Department of Energy munitions
program.
The House bill would authorize $31.8 million for the
program, a $15.0 million increase to the budget request for
environmentally compliant demilitarization and disposal of
unserviceable, obsolete, or non-treaty compliant munitions,
rocket motors, and explosives.
The Senate amendment would authorize the budget request.
The conferees agree to a $5.0 million increase to the
budget request for joint DOD/DOE munitions technology
development (PE 63225D). In addition, the conferees agree to
provide $15.0 million for explosives demilitarization
technology (PE 63104D), discussed elsewhere in the report.
Experimental evaluation of major innovative technologies
(EEMIT)
The budget request included $618.0 million for Experimental
Evaluation of Major Innovative Technologies (EEMIT).
The House bill would authorize an additional $55.8 million
for several programs, to include: global grid communications
($5.0 million); safety and survivability ($2.0 million);
synthetic theater of war ($6.8 million); cruise missile
defense ($35.0 million); and antisubmarine warfare (ASW)
($7.0 million).
The Senate amendment would authorize an increase of $18.0
million for several programs, to include: cruise missile

[[Page H609]]
defense ($10.0 million); thermophotovoltaics ($5.0 million); and
funding for a large millimeter wave telescope ($3.0 million).
The Senate would also authorize a general reduction of $10.0
million to the EEMIT program element.
The conferees agree to authorize $613.7 million in PE
63226E, the highest level of appropriation, and specifically
identify the following programs for authorization: cruise
missile defense ($10.0 million); large millimeter wave
telescope ($3.0 million); safety and survivability ($2.0
million); ASW ($5.0 million); deep ocean relocation ($2.5
million); and Crown Royal ($5.0 million).
Safety and survivability
The House bill would authorize an additional $2.0 million
in PE 65864N and an additional $2.0 million in PE 63226E for
safety and survivability enhancements.
The Senate amendment contained no additional authorization
for these purposes.
The conferees direct that of the funds authorized in PE
64864N and PE 63226E, $2.0 million each shall be used for
safety and survivability enhancements, as specified in the
House report (H. Rept. 104-131).
Shallow water anti-submarine warfare
The budget request included $16.5 million in PE 63226E for
development and demonstration of advanced technologies for
shallow water anti-submarine warfare operations.
The House bill would authorize an additional $7.0 million
to begin an assessment by ARPA and the Navy of the use of
newly developed and maturing multi-static acoustic,
electromagnetic and electro-optic sensor technologies
integrated into existing aircraft, ship, and submarine
platforms in a combined system of sensors to provide the
joint amphibious operational commander an integrated picture
of the littoral maritime environment.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment. The conferees agree
to authorize an additional $5.0 million to the budget request
to continue the development and demonstration of advanced
technologies for shallow water anti-submarine warfare.
Synthetic theater of war
The budget request included $79.1 million in PE 63226E for
the Advanced Distributed Simulation program.
The House bill would authorize an additional $6.8 million
to maintain the program and schedule for the 1997 Synthetic
Theater of War (STOW-97) advanced concept technology
demonstration.
The Senate amendment would authorize the budget request.
The House recedes. The conferees are impressed by the
results of the STOW-95 demonstration and the potential to
meet the warfighting commanders' requirements for development
and integration of improved simulation technologies for
training and mission rehearsal. The conferees recognize that
the STOW program could prove to be the foundation for the
future Joint Simulations System for all the military
services. The conferees strongly encourage the Secretary of
Defense to maintain funding levels necessary to sustain the
objectives and schedule of the STOW-97 advanced concept
technology demonstration.
Tactical technology
The budget request included $113.2 million for this
tactical technology program.
The House bill would authorize an additional $7.0 million
for the tactical landing system project and an additional
$7.0 million for a high resolution, mobile multiple object
tracking system project.
The Senate amendment would authorize an additional $6.5
million for the tactical landing system project.
The conferees agree to authorize an additional $6.5 million
in PE 63226E for completion of the tactical landing system
project and an additional $7.0 million in PE 63226E for a
high resolution, mobile multiple object tracking system.
Advanced submarine technology development
The budget request included $7.5 million in PE 63569E for
the Advanced Research Projects Agency's (ARPA's) advanced
submarine technology program.
The House bill would authorize an additional $23.0 million
in PE 63569E. This increase would permit ARPA to pursue
innovative technologies that could improve the capability of
Navy submarines to operate in littoral regions, develop and
demonstrate new concepts for structural acoustics and
management of submarine signatures, and enhance the multi-
mission capabilities of Navy submarines.
The Senate amendment would authorize the budget request.
The conferees agree to authorize $30.5 million in PE
63569E, an increase of $23.0 million. Of the $23.0 million,
$7.0 million shall only be available to continue transfer of
technology to the Navy for active control of machinery
platforms demonstrated in ARPA's Project M.
Rapid acquisition of manufactured parts
The House bill would authorize an increase of $12.0 million
above the requested amount of $21.5 million in PE 63712N for
the continuation of the rapid acquisition of manufactured
parts (RAMP) program.
The Senate amendment would authorize an increase of $12.0
million above the requested amount of $6.5 million in PE
63736D for the RAMP program.
The House recedes.
Advanced lithography program
The budget request included $39.0 million in PE 63739E for
advanced lithography programs.
The House bill would authorize an additional $25.0 million
in PE 63739E for advanced lithography programs.
The Senate amendment would authorize the requested amount.
The conferees agree to authorize $60.0 million, an
additional $21.0 million, in PE 63739E, for advanced
lithography programs.
Advanced electronics technologies
The budget request included $420.0 million for advanced
electronics technologies in PE 63739E.
The House bill would authorize an additional $25.0 million
for advanced lithography and a reduction of $23.6 million in
project MT-07.
The Senate amendment reduced the budget request by a
cumulative $50.0 million for three separate programs.
The conferees agree to a funding level of $409.0 million,
which includes an additional $21.0 million for advanced
lithography, $7.5 million for seamless high off-chip
connectivity, and full funding for project MT-08. The
conferees consider the work of the Center for Advanced
Technologies to be worthy of continuation. The conferees note
that the Department of Defense may, at its discretion, use
funds authorized in PE 61101E to continue the program at the
requested level.
Joint robotics program
The budget request included $17.4 million for the joint
robotics program.
The House bill would authorize an additional $10.0 million
for the mobile detection assessment response system (MDARS).
The Senate amendment contained no similar provision.
The conferees agree to an increased funding authorization
of $5.0 million for MDARS in PE 63709D.
Advanced sensor applications program
The budget request included $17.4 million in PE 63714D for
the advanced sensor applications program.
The House bill would authorize an increase of $10.0 million
to the budget request, including $5.0 million for continued
development of a research prototype laser radar anti-
submarine warfare (LIDAR ASW) system concept, which is being
investigated by the Office of the Secretary of Defense
advanced sensor applications program (OSD ASAP), and $5.0
million for continued development of the Navy ATD-111 LIDAR
ASW system. The House bill would encourage comparative
testing of the two systems as a basis for establishing the
requirement for a follow-on system.
The Senate amendment would authorize an additional $10.0
million for upgrade test and evaluation of the ATD-111
system, and would direct the Secretary of the Navy to prepare
a plan for acquisition and deployment of the ATD-111.
The conferees have agreed to provide $10.0 million in PE
63528N for the Navy ATD-111 non-acoustic anti-submarine
warfare program, as discussed elsewhere in this statement of
managers. The conferees strongly support the comparative
evaluation of the LIDAR ASW alternatives, and direct the
Department of the Navy and the OSD ASAP to develop jointly a
plan for testing these two alternative approaches to LIDAR
ASW. The conferees expect that funds to complete the
evaluation will be included in the fiscal year 1997 defense
budget request.
Industrial preparedness (manufacturing technology) programs
The budget request included $17.8 million for the Army,
$41.2 million for the Navy, $53.3 million for the Air Force,
and $7.0 million for the Defense Agencies to fund the
manufacturing technology (MANTECH) programs within these
agencies.
The House bill would include an additional $10.0 million
for the Army, an additional $10.0 million for the Navy, and
approve the requested amount for the Air Force and the
Defense. The House bill would also transfer funding from
advanced development (6.3) program elements to industrial
preparedness (7.8) program elements.
The Senate amendment would authorize all the manufacturing
technology programs at the requested amounts and would
transfer the funding from the program elements in the budget
request.
The conferees agree to authorize funding for manufacturing
technology programs, as follows:

Millions
Army (PE 78045A)..................................................$26.8
Navy (PE 78011N)...................................................88.0
Air Force (PE 78011F)..............................................60.9
Def. Ag. (PE 78011S)................................................7.0
Integrated bridge system for MK V special operations craft
The budget request included $13.3 million in PE 1160402BB
for special operations advanced technology development.
The House bill would authorize an additional $1.5 million
for development of a prototype maritime integrated bridge
system for the MK V special operations craft to demonstrate
the potential for advanced display and control technologies
to enhance mission performance.
The Senate amendment would authorize the budget request.
The Senate recedes.
Quiet Knight advanced concept and technology demonstration
The budget request included $101.6 million in PE 1160404BB
for Special Operations tactical systems development, to
include $3.5

[[Page H610]]
million allocated by the U.S. Special Operations Command to continue
the Quiet Knight advanced avionics technology demonstration.
The House bill would authorize the budget request. The
House report (H. Rept. 104-131) expressed strong support for
a Phase I (component development and demonstration) of an
advanced concept technology demonstration of Quiet Knight for
both fixed and rotary wing aircraft, and the continuation to
a Phase II full scale demonstration and flight test of the
integrated Quiet Knight capability. The House report also
expressed the expectation that funding requirements for
completion of the Phase II demonstration would be included in
the fiscal year 1997 budget request.
The Senate amendment would authorize the budget request.
The conferees support completion of the Quiet Knight
technology demonstration, and encourage the Department of
Defense to validate the requirements for advanced low
probability of intercept/low probability of detection
avionics for special operations aircraft.
Advanced SEAL delivery system
The budget request included $24.6 million in PE 1160404BB
to complete fabrication and integration of the first Advanced
SEAL Delivery System (ASDS) and begin system level testing.
The House bill would authorize an additional $4.0 million
to complete evaluation of the ASDS employed on the SSN-688
class submarine.
The Senate amendment contained a similar provision.
The conferees are pleased with the joint efforts of the
U.S. Special Operations Command and the Navy in the
development of ASDS. The conferees agree to increase the
budget request by $4.0 million to complete evaluation of the
ASDS.
Rigid hull inflatable boat
The budget request contained $11.7 million for procurement
of special warfare equipment, including $10.1 million for
procurement of the Naval Special Warfare 10 meter Rigid Hull
Inflatable Boat (RHIB).
The House bill would authorize the budget request.
The Senate amendment noted that the U.S. Special Operations
Command had reported that the 10 meter RHIB, on which initial
developmental effort had been focused, performed
unsatisfactorily during operational testing. As a result, a
new strategy was adopted for development of a RHIB to meet
Special Operations Forces' requirements. The Senate amendment
would authorize an increase of $4.3 million in PE 1160404BB
to support this developmental effort and would direct a
corresponding reduction in the procurement account for
special warfare equipment to offset the increase.
The House recedes. The conferees understand that the $4.3
million increase in PE 1160404BB for this purpose will
support the competitive procurement of three to four
prototype RHIBs for developmental testing and early
operational assessment. The remaining $5.8 million authorized
for procurement of special warfare RHIBs will be used to
procure approximately 30 interim 24-foot RHIBs to alleviate
deficiencies caused by the estimated three-year delay in
initial operation capability for the new RHIBs.
Ballistic missile defense funding and programmatic guidance
The budget request contained $2,912.9 million for the
Ballistic Missile Defense Organization (BMDO), including
$2,442.2 million for Research, Development, Test, and
Evaluation (RDT&E), $453.7 million for Procurement, and $17.0
million for Military Construction.
The House bill would authorize an additional $628.0 million
for BMDO.
The Senate amendment would authorize an additional $490.5
million for BMDO.
The conferees agree to authorize a total of $3,516.9
million for BMDO, an increase of $603.9 million above the
budget request. The conferees set forth specific funding
allocations and programmatic guidance below.

BMDO FUNDING ALLOCATION
[In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Conference
Program Budget Request House Change Senate Change Conference Change Outcome
--------------------------------------------------------------------------------------------------------------------------------------------------------
Support Tech............................................. 93,308 ................. ................. ................. 93,308
Support Tech............................................. 79,387 ................. +70,000 +50,000 129,387
THAAD Dem/Val............................................ 576,327 ................. ................. ................. 576,327
Hawk..................................................... 23,188 ................. ................. ................. 23,188
BM/C3 Dem/Val............................................ 24,231 ................. ................. ................. 24,231
Navy LT Dem/Val.......................................... ................. ................. ................. +185,000 185,000
Navy UT Dem/Val.......................................... 30,442 +170,000 +170,000 +170,000 200,442
Corps SAM................................................ 30,442 -10,000 +4,558 -10,000 20,442
BPI...................................................... 49,061 -20,000 -49,061 -49,061 .................
NMD...................................................... 370,621 +450,000 +300,000 +450,000 820,621
Other TMD................................................ 460,470 -37,000 +15,000 -22,000 438,470
THAAD EMD................................................ ................. +50,000 ................. ................. .................
BM/C3 EMD................................................ 14,301 ................. ................. ................. 14,301
PAC-3 EMD................................................ 247,921 ................. +104,500 +104,500 352,421
PAC-3 EMD/RR............................................. 19,485 ................. ................. ................. 19,485
Navy LT EMD.............................................. 237,473 +45,000 +45,000 -140,000 97,473
Management............................................... 185,542 -20,000 -30,000 -30,000 155,542
Patriot Proc............................................. 399,463 ................. -104,500 -104,500 294,963
Navy LT Proc............................................. 16,897 ................. ................. ................. 16,897
Hawk Proc................................................ 5,106 ................. ................. ................. 5,106
BM/C3 Proc............................................... 32,242 ................. ................. ................. 32,242
BMDO Milcon.............................................. 17,009 ................. ................. ................. 17,009
--------------------------------------------------------------------------------------------------------------------------------------------------------

Theater High Altitude Area Defense (THAAD)--The conferees
agree to authorize the budget request of $576.3 million in PE
63861C for THAAD Demonstration/Validation (Dem/Val).
The conferees endorse the language in the House report (H.
Rept. 104-131) and the Senate report (S. Rept. 104-112)
regarding the THAAD User Operational Evaluation System (UOES)
option, and the need to ensure a smooth and timely transition
from the Dem/Val phase to the Engineering and Manufacturing
Development (EMD) phase. The conferees direct the Secretary
of Defense to restructure the THAAD program so as to achieve
a First Unit Equipped (FUE) by fiscal year 2000. The
conferees believe that this objective can be facilitated by
making only minor modifications to the UOES design and
beginning Low-Rate Initial Production as soon as the EMD
missiles have been adequately tested. Subsequent performance
improvements to the initial system configuration should be
incorporated through block upgrades, as appropriate and
necessary. The conferees note that this approach would reduce
overall THAAD development costs while significantly
accelerating fielding of an operational system. Therefore,
the conferees urge the Secretary of Defense to release the
THAAD engineering and manufacturing development (EMD) request
for proposal. Finally, the conferees direct the Secretary of
Defense to promptly initiate development of all battle
management software for the THADD system, including that
necessary to receive cuing information from external sensors.
Navy Upper Tier--The budget request included $30.4 million
in PE 63868C for the Navy Upper Tier program.
The conferees agree to authorize an increase of $170.0
million for a total Navy Upper Tier authorization of $200.4
million. The conferees direct the Secretary of Defense to
include the Navy Upper Tier program in the core theater
missile defense (TMD) program and to structure the Navy Upper
Tier development and acquisition program so as to achieve an
initial operational capability (IOC) not later than fiscal
year 2001, with a UOES capability not later than fiscal year
1999. The conferees look forward to receiving the results of
the various studies that are assessing Navy Upper Tier
technical issues and deployment options. The conferees agree
to require the Director of BMDO to provide a status report to
the congressional defense committees, not later than March 1,
1996, that summarizes the findings and recommendations (as
available) of these analyses. The Director of BMDO should
include in such report an assessment of options for reducing
risk and enhancing competition in the Navy Upper Tier
program, including the option of establishing a competitive
development and flight test program between the Lightweight
Exoatomospheric Projectile (LEAP) and THAAD kill vehicles.
The conferees believe that competition within the Navy
Upper Tier program is desirable, but do not support the
notion of competition between the Navy Upper Tier and THAAD
programs. The conferees are convinced that the United States
can and should develop and deploy both sea-based and land-
based upper tier programs. Although there may be an
opportunity to reduce the number of TMD programs being
developed by the Department of Defense, the conferees
strongly oppose the notion of a competition and down-select
between the THAAD and Navy Upper Tier systems. The conferees
view these as critical and complementary systems.
Patriot--The budget request included $247.9 in PE 64865C
for PAC-3 EMD, $19.5 million in PE 64866C for PAC-3 risk
reduction, and $399.5 million for Patriot procurement.

[[Page H611]]

The conferees agree to authorize the overall amount
requested for the Patriot program and related activities.
Within this overall authorization, the conferees agree to
transfer $104.5 million from Patriot procurement to PAC-3
EMD, a total authorization of $352.4 million in PE 64865C.
Navy Lower Tier--The budget request included $237.5 million
in PE 64867C for Navy Lower Tier EMD and $16.9 million for
Navy Lower Tier procurement.
The conferees agree to authorize an increase of $45.0
million for Navy Lower Tier Dem/Val and to transfer $140.0
million from Navy Lower Tier EMD to Navy Lower Tier Dem/Val,
a total of $185.0 million in PE 63867C.
Corps SAM--The budget request included $30.4 million in PE
63869C for the Corps Surface to Air Missile (Corps SAM)
system.
The conferees agree to authorize $20.4 million for Corps
SAM, a reduction of $10.0 million. Although the conferees
support the Corps SAM requirement, they remain concerned by
several aspects of the current Corps SAM program, now known
as the medium extended air defense system (MEADS). The
conferees support an effort to explore alternative means to
satisfy the Corps SAM requirement. Given the investments that
have already been made in developing systems such as PAC-3
and THAAD, reintegration of existing systems and technologies
may offer an achievable, cost-effective, and expeditious
alternative. The conferees direct the Secretary of Defense to
submit a report to the congressional defense committees on
the options associated with the use of existing systems,
technologies, and program management mechanisms to satisfy
the Corps SAM requirement, including an assessment of cost
and schedule implications. The conferees direct that, of the
funds authorized in fiscal year 1996 for the Corps SAM
program, not more than $15.0 million may be obligated until
such report has been submitted to the congressional defense
committees.
Boost-Phase Intercept--The budget request included $49.1
million in PE 63870C for the kinetic energy Boost-Phase
Intercept (BPI) program.
The House bill would authorize $29.1 million for the
kinetic BPI program.
The Senate amendment would authorize no funds for the
kinetic BPI program in PE 63870C. However, the Senate
amendment would authorize $15.0 million in the Other TMD
(OTMD) program element (PE 63872C) to initiate a joint United
States-Israel BPI program based on unmanned aerial vehicles
(UAVs).
The conferees agree to authorize no funds for the kinetic
BPI program due to continuing skepticism about the
operational and technical effectiveness of a BPI system based
on a manned tactical aircraft. However, the conferees agree
to authorize the use of up to $15.0 million, from within
funds made available in the OTMD program element, for a UAV-
based BPI program. The conferees support a joint U.S.-Israel
UAV-BPI program focused on risk mitigation, provided that an
equitable cost-sharing arrangement can be reached and that
the program will be structured to satisfy the BPI
requirements of both sides. The conferees also support
continuation of the Atmospheric Interceptor Technology (AIT)
program, which is being developed as an advanced multi-
purpose kill vehicle. The conferees authorize the use of up
to $30.0 million, from within funds made available in the
OTMD program element, to continue the AIT program. The
conferees are disappointed that the Department has not
completed its review of BPI programs and options in time to
inform the conferees' deliberations and decisions. Therefore,
the conferees agree to require the Director of BMDO to submit
a report to the congressional defense committees, not later
than February 1, 1996, that summarizes the findings and
recommendations of the Department's BPI study. This report
should also address promising options and technical
approaches associated with a UAV BPI program.
Other TMD--The budget request contained $460.5 million in
PE 63872C for OTMD programs, projects, and activities.
The House bill would authorize $423.5 million for OTMD.
The Senate amendment would authorize $475.5 million,
including the $15.0 million for the UAV-BPI program cited
above.
The conferees agree to authorize $438.5 million for OTMD.
Of this amount, the conferees authorize the use of up to
$15.0 million to explore a UAV-BPI program and up to $30.0
million to continue the AIT advanced kill vehicle program.
National Missile Defense--The budget request contained
$370.6 million in PE 63871C for National Missile Defense
(NMD).
The House bill would authorize $820.6 million for NMD.
The Senate amendment would authorize $670.6 million for
NMD.
The conferees agree to authorize $820.6 million for NMD.
Support Technologies--The budget request contained $93.3
million in PE 62173C and $79.4 million in PE 63173C for
ballistic missile defense (BMD) support technologies.
The House bill would authorize the budget request for BMD
Support Technologies.
The Senate amendment would authorize an increase of $70.0
million in PE 63173C for the Space-Based Laser (SBL) program.
The conferees agree to authorize the budget request in PE
62173C and to authorize an increase in the SBL program of
$50.0 million, for a total authorization of $129.4 million in
PE 63173C. The conferees believe that it is critical for the
United States to continue developing the technology for
space-based defenses, to preserve the option of deploying
highly effective global defenses in the future. The conferees
note that a space-based laser would likely be the most
effective system for intercepting ballistic missiles of
virtually all ranges in the boost phase. Therefore, the
conferees direct the Secretary of Defense to take the
following actions: (1) continue integration and testing of
the laser, mirror, and beam control components of the Alpha-
Lamp Integration program; (2) accelerate design activities on
the StarLITE space demonstration configuration; (3) produce
the concept of operations and design requirements for a
follow-on operational space-based laser deployment; and (4)
revitalize the technology development efforts most likely to
yield significant cost and weight savings for a future SBL
spacecraft. The conferees direct the Secretary of Defense to
ensure that sufficient funds are provided in the outyears for
continuation of a robust SBL effort, and submit to the
congressional defense committees, by March 1, 1996, a report
that outlines a program and funding profile that could lead
to an on-orbit test of a demonstration system by the end of
1999 if approved.
The conferees note that the Director, BMDO, has testified
to Congress that BMDO's follow-on technology programs are
severely under-funded and that the Director is seeking to
increase such funding to approximately 12 percent of the
overall BMDO budget. The conferees support the efforts of the
Director of BMDO to increase funding for advanced technology
development. However, the conferees note that such increases
will require an overall increase in the funds allocated to
BMDO. The conferees support such an increase in order to
reinvigorate and advanced technology programs and to help
sustain the development and acquisition activities endorsed
by the conferees.
BMDO is required to set aside 2.15 percent of extramural
research, development, test, and evaluation authorized and
appropriated (RDT&E) funds for Small Business Innovative
Research (SBIR) efforts. Since the conferees recommend a
level of funding for BMD programs exceeding the budget
request, and programmed funding for SBIR represents a level
below the mandated percentage, the Director of BMDO is
authorized to transfer such funds as necessary from BMD
program elements into PE 62173C to achieve the required
percentage for SBIR.
BMDO Management--The budget request contained $185.5
million in PE 65218C for BMD Management.
The House bill would authorize $165.5 million for BMDO
Management.
The Senate amendment would authorize $155.5 million for
BMDO Management.
The conferees agree to authorize $155.5 million for BMDO
Management. The conferees recognize that BMDO must maintain
the integrity of its oversight of the overall BMD program.
The conferees are concerned, however, that BMD management
infrastructure may be unnecessarily duplicated in one or more
of the services. Therefore, the conferees direct that BMDO
identify any such duplication and take actions to eliminate
it. The conferees request that the Director of BMDO consult
with the Senate Committee on Armed Services and the House
Committee on National Security regarding the Director's
findings and proposed actions. The conferees further direct
that BMDO show no increase in fiscal year 1997, after
adjustments for inflation and any change in mission, over the
level appropriated for management in fiscal year 1996.
Cruise missile defense funding
The House bill would authorize an increase of $76.0 million
above the budget request for cruise missile defense programs,
projects, and activities.
The Senate amendment would authorize an increase of $145.0
million above the budget request for a similar group of
programs, projects, and activities.
The conferees agree to authorize an increase of $85.0
million above the budget request for cruise missile defense
programs, projects, and activities. The conferees provide
additional guidance in the classified annex.

ITEMS OF SPECIAL INTEREST

Anti-submarine warfare program
The conferees share the concerns raised in the House report
(H. Rept. 104-131), and in the classified annex to that
report, regarding the apparent decline in priority of the
Navy's anti-submarine warfare (ASW) program. The conferees
agree that there is a need for an assessment of the nation's
overall ASW program. The conferees' concerns are addressed
further in the classified annex to this Statement of
Managers.
The conferees direct the Secretary of Defense to assess the
current and projected United States ASW capability in light
of the continuing development of quieter nuclear submarines,
the proliferation of very capable diesel submarines, the sale
of sophisticated, submarine launched weapons, and the
declining trend in budget resources associated with ASW
programs. This assessment should identify both short-term and
long-term improvements that are needed to cope with the
evolving submarine threat in both littoral and open ocean
areas. The results of this assessment and the plan for the
United States ASW program shall be reported to the
congressional defense committees by July 1, 1996.
Geosat follow-on program
The House report (H. Rept. 104-131) addressed the issue of
converging the Navy's

[[Page H612]]
Geosat Follow-On (GFO) altimetry program with the National Aeronautics
and Space Administration's TOPEX/Poseidon Follow-On (TPFO)
altimetry program.
The Senate report (S. Rept. 104-112) did not address the
issue.
The conferees share the concerns raised in the House
report. The conferees are dismayed that the report to
Congress on altimetry convergence was submitted more than
three months later than an already extended deadline. The
conferees are also troubled that the report recommends
proceeding with the TPFO option, despite the fact that this
approach would cost more, not involve U.S. construction and
control of the satellite, and not provide the same level of
data security. The TPFO option would require the Navy to
spend an additional $5.2 million, for which it has not
budgeted, to add global positioning system (GPS) and direct
downlink capabilities critical for satisfying Navy
requirements. The conferees direct that no funds authorized
for the Department of Defense be obligated or expended during
fiscal year 1996 for activities associated with adding GPS
and direct downlink capabilities to TPFO.
High performance computing modernization program
In addition to supporting efforts to reduce the RDT&E
infrastructure, the conferees continue to support investment
in high performance computing (HPC) resources for use in the
developmental test and evaluation (DT&E) community and
recognize the need for a transition to HPC-based resources,
integrated DT&E, and operational test and evaluation (OT&E).
The conferees direct the Secretary of Defense to prepare a
long-term plan for modernization of HPC resources at test and
evaluation centers, and for the integration of HPC-based
models, advanced data bases, and other decision support
resources into the RDT&E infrastructure. In preparing the
plan, the Secretary should rely on the collaborative input
from the Director of Defense Research and Engineering, the
Director of Test Systems Engineering and Evaluation, and the
Director of Operational Test and Evaluation. The plan shall
address budgeting options that provide for a realistic
program and propose financing methods that can insure that
needed infrastructure investments are made in a timely
manner. The conferees direct the Secretary to submit the
proposed plan with the Department of Defense budget
recommendations to the congressional defense committees, no
later than March 31, 1996.
Low-low frequency acoustics
The conferees share the understanding expressed in the
House report (H. Rept. 104-131) that of the funds authorized
and appropriated in fiscal year 1994 and 1995 for the low-low
frequency acoustics (LLFA) technology program approximately
$30.0 million remain available and are sufficient to continue
the program through fiscal year 1996. The conferees further
understand that the fiscal year 1996 program will focus on
operational concepts for the LLFA, technical performance,
command and control, environmental considerations, and the
transition of the LLFA technology to existing fleet
platforms. The conferees agree with the House that based on
the emerging results of the fiscal year 1996 program
consideration of additional funding for LLFA technology
program, should be deferred until the fiscal year 1997 budget
request.
Machine tool controller
The conferees are aware of a recent cooperative research
and development agreement, entered into by the Department of
Energy, two national laboratories, and a private sector
consortium, to develop and test an open-architecture machine
tool controller. The conferees encourage the Secretary of
Defense to develop a plan to ensure a thorough evaluation of
the technology and its application to the specific needs of
defense contractors.
National security space policy, management, and oversight
The House report (H. Rept. 104-131) and the Senate report
(S. Rept. 104-112) each contained reporting requirements
concerning policy, management, and oversight of U.S. national
security space programs. In lieu of the reporting
requirements contained in those reports, the conferees direct
the Secretary of Defense to submit a report to the Congress,
not later than April 15, 1996, that addresses in detail the
following matters:
(1) The results of the Administration's reviews of U.S.
national and military space policies--The conferees direct
that copies of any updated policy directives (including
unclassified and classified forms) that result from the
reviews be included as attachments to the Secretary's report.
The conferees view the Administration's decision to initiate
such reviews as appropriate in light of changes in the
international security environment, and expect the reviews
will be completed in time to permit Departmental witnesses to
discuss the results in hearings on the President's fiscal
year 1997 budget request.
(2) The activities of the Joint Department of Defense
Intelligence Community Space Management Board (JSMB)--The
report shall include a copy of the charter for the Board and
a description of its planned functions, operations, and
staffing. The report shall address the responsibilities for
the development of an integrated national security space
architecture and the integrated acquisition of national
security space systems. In addition, the report shall
describe the Board's plans for reviewing military and
intelligence satellite communications architectures and
systems. The conferees endorse the establishment of the JSMB,
noting that improved integration of military and intelligence
satellite architectures and systems can result in significant
cost-savings and efficiencies in the acquisition and
operation of those systems.
(3) The status of and plans for completing a national
security space master plan to guide investments in military
and intelligence space architectures and systems for the
coming decade--The conferees note with concern that the
Department failed in a similar, but more narrowly focused,
undertaking when, in the Statement of Managers to accompany
the National Defense Authorization Act for Fiscal Year 1993
(H. Rept. 102-966), the conferees directed the Department to
develop ``a comprehensive acquisition strategy for
developing, fielding, and operating DOD space programs.''
Nonetheless, the conferees applaud the decision of the Deputy
Under Secretary of Defense for Space to begin drafting such a
master plan, and request that the report include an estimated
completion date for the plan.
(4) The Department's plans for ensuring that, even as
oversight of national security space acquisition and planning
is centralized, each of the military services is able to
influence decisions regarding space architectures and
systems--The conferees direct that the report include: (a) an
assessment of progress to date in centralizing DOD space
management; (b) the organizational structure that will be
achieved upon completion of the planned consolidation, and an
estimated completion date for such consolidation; (c) a
description of how the DOD plans to protect service-unique
interests and other equities in the new centralized
organization; (d) the anticipated reductions in personnel and
infrastructure that will result from such consolidation; and
(e) the degree to which effectiveness and efficiency will be
enhanced by the new structure and associated procedures.
The conferees are aware that the Department has established
a Space Architect Office as part of the space management
reorganization. Given that this is a new function and
organization, budget planning was not completed prior to
submittal of the amended fiscal year 1996 budget request.
Therefore, the conferees agree to authorize the use of up to
$10.0 million in Air Force research, development, test, and
evaluation funds to operate the Space Architect Office in
fiscal year 1996.
Shortstop
The conferees stress the need to move forward without delay
on the Shortstop countermeasure system, and encourage the
Secretary of the Army to maintain funding for the currently
planned program leading to procurement.
Softwar operations
The conferees direct the Air Force's Phillips Laboratory
Combat Space Operations Program Office to examine the use of
commercially developed Information Warfare Systems that use
television enhanced situational awareness for ``softwar''
operations. The Secretary of the Air Force shall report to
the congressional defense committees by January 1, 1996 on
the results of the Phillips Laboratory examination and the
possibility to fund a technology demonstration in ``softwar''
operations. The conferees direct the Secretary to pursue this
technology if the examination results in a favorable
recommendation.

LEGISLATIVE PROVISIONS

Legislative Provisions Adopted

Subtitle A--Authorization of Appropriations

Modifications to strategic environmental research and
development program (sec. 203)
The House bill contained a provision (sec. 203) that would
make certain modifications to chapter 172 of title 10, United
States Code, which governs the Strategic Environmental
Research and Development Program.
Senate amendment contained no similar provision.
The Senate recedes with an amendment that would streamline
and simplify program activities, facilitate program
management, and promote cost effectiveness. The existing
annual reporting requirement would continue until fiscal year
1997, at which point an abbreviated annual reporting
requirement would become effective. The Senate amendment
would ensure that the level of participation by the Secretary
of Energy would not be subject to change. The conferees agree
that there is a continuing need for Department of Energy
participation in the program, and the retention of some
reporting requirements.
Defense dual-use technology initiative (sec. 204)
The House bill would deny the entire funding request of
$500.0 million for the Defense Reinvestment Program (PE
63570E).
The Senate amendment would rename the program the Defense
Dual-Use Technology Initiative and reduce the requested
authorization for the program by $262.0 million.
The conferees agree to change the name of the program and
to authorize $195.0 million for the program. The conferees
have included a provision that would limit the availability
of the funds authorized in PE 63570E only for the purpose of
continuation or completion of projects initiated before
October 1, 1995. The conferees have also included language
that would require the Secretary of Defense, prior to
obligation of funds, to provide the congressional defense
committees with notice

[[Page H613]]
regarding the projects to be funded with $145.0 million of the amount
authorized for the program. The conferees have also required
that, for the remaining $50.0 million of the total amount
authorized, the Secretary should certify, prior to obligation
of funds, that the projects that would be carried out using
such funds have been determined by the Joint Requirements
Oversight Council to be of significant military priority.

Subtitle B--Program Requirements, Restrictions, and Limitations

Space launch modernization (sec. 211)
The House bill contained a provision (sec. 211) that would
authorize $100.0 million for a competitive reusable rocket
technology program, and $7.5 million for evaluation of
prototype hardware of low-cost expendable launch vehicles.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would authorize
$50.0 million for a competitive reusable rocket technology
program, provided that the National Aeronautics and Space
Administration allocates at least an equal amount for its
reusable space launch program.
Tactical manned reconnaissance (sec. 212)
The House bill contained a provision (sec. 213) that would
prohibit the Air Force from conducting any research and
development on tactical manned reconnaissance systems.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would require a
report explaining the Air Force's planned uses of funds for
the tactical manned reconnaissance mission.
Joint advanced strike technology (JAST) program (sec. 213)
The budget request included three requests for research and
development funding for the joint advanced strike technology
(JAST) program: $149.3 million for the Navy, $151.2 million
for the Air Force, and $30.7 million for the Advanced
Research Projects Agency.
The House bill contained a provision (sec. 216) that would
reduce the request for JAST by $51.0 million, evenly divided
between the Navy and the Air Force, and limit to 75 percent
the obligation of fiscal year 1996 appropriations until the
Secretary of Defense provides a report to the congressional
defense committees. The provision would require that the
Secretary's report specify the numbers and capabilities of
JAST-derivative aircraft and related weapons systems
necessary to support two major regional contingencies.
The Senate amendment would approve the JAST request. The
Senate amendment also contained a provision (sec. 211) that
would require the Navy to evaluate a variant of the F-117
stealth fighter to fulfill Navy requirements within the JAST
program. The Senate amendment would add $175.0 million to the
Navy program for this propose, with $25.0 million to provide
initial engineering analysis and specific risk reduction
efforts, and $150.0 million to develop a flying prototype.
Authorization of a flying prototype would be contingent on
approval by the Secretary of the Navy's approval of results
of initial analytical efforts.
The Senate report (S. Rept. 104-112) questioned whether the
program could fulfill the needs of the three services, and
directed the Department to include two separate approaches in
the JAST program to reduce program risk. The Senate amendment
directed the Secretary of the Navy to:
(1) ensure that the JAST program leads to competitive
demonstration involving tests of full scale, full thrust
aircraft by competitors to provide test data for evaluation
by the services; and
(2) evaluate at least two propulsion concepts from
competing engine companies as part of those demonstrations.
Subsequent to passage of the Senate amendment and the House
bill, the Department redefined the JAST program. Although
additional resources will be necessary, from fiscal year 1997
onward, to execute this new program, these changes have led
to fiscal year 1996 deferral of $131.0 million.
The conferees share the concerns expressed in the Senate
report (S. Rept. 104-112) regarding the lack of engine
competition and the size of flying prototypes. The conferees
direct the Under Secretary of Defense (Acquisition &
Technology) (USD (A&T)) to ensure that: (1) the Department's
JAST program plan provides for adequate engine competition in
the program; and (2) the scale of the proposed demonstrator
aircraft is consistent with both adequately demonstrating
JAST concepts and lowering the risk of entering engineering
and manufacturing development (EMD). The conferees direct the
Secretary of Defense to include in the report required by
section 213(d) the Department's plan for competitive engine
programs and demonstrator aircraft.
The conferees recommend authorization of funds reflecting
these changes, and agree to a provision (sec. 213) that
would:
(1) require that the Secretary of Defense provide a report
to the congressional defense committees specifying the:
(a) the numbers and capabilities of JAST-derivative
aircraft and related weapons systems required to support two
major regional contingencies; and
(b) the department's plan for competitive engine programs
and demonstrator aircraft;
(2) limit obligations for the JAST program to no more than
75 per cent of fiscal year 1996 appropriations, until the
Secretary of Defense provides this report;
(3) authorize up to $25.0 million from Navy Research,
Development, Test and Evaluation to conduct a six month
program definition phase for the A/F-117X to determine
whether such an aircraft could affordably meet the Navy's
next generation aircraft strike requirements;
(a) if the USD (A&T) determines that a six month definition
phase is warranted, he shall provide a report on the results
of the concept definition phase to the congressional defense
committees, not later than May 1, 1996;
(b) if the USD (A&T) determines otherwise and certifies
that an A/F-117X aircraft is not needed to meet the Navy
requirements and is not a cost effective approach to meeting
Navy needs, the provision would allow the Department to use
the $25.0 million for other JAST activities.
(4) authorize $7.0 million for competitive engine concepts.
Continous wave, superconducting radio frequency, free
electron laser (sec. 214)
The House bill contained a provision (sec. 217) that would
authorize $9.0 million in PE 62111N for the establishment of
a continuous wave, superconducting radio frequency, free
electron laser program within the Office of the Secretary of
the Navy.
The Senate amendment contained no similar provision.
The Senate recedes.
Navy mine countermeasure program (sec. 215)
The Senate amendment contained a provision (sec. 212) that
would transfer primary responsibility for developing and
testing naval mine countermeasures from the Director, Defense
Research and Engineering to the Under Secretary of Defense
for Acquisition and Technology. It would provide for the
exercise of this responsibility during fiscal years 1997
through 1999.
The House bill contained no similar provision.
The House recedes with an amendment that would establish
fiscal years 1996 through 1999 as the period for exercise of
the responsibility.
The conferees note that section 216(b) of the National
Defense Authorization Act for Fiscal Years 1992 and 1993
(Public Law 102-190) provides that the Secretary of Defense
may waive this assignment of responsibility if he annually
certifies the adequacy of:
(1) the mine countermeasures master plan prepared by the
Department of the Navy; and
(2) the budget resources provided for implementation of the
plan.
Space-Based Infrared System (sec. 216)
The Senate amendment contained a provision (sec. 214) that
would accelerate development and deployment of the Space and
Missile Tracking System (SMTS), formerly known as Brilliant
Eyes, and that would require the Secretary of the Air Force
to obtain the concurrence of the Director of the Ballistic
Missile Defense Organization (BMDO) before implementing any
decision that would impact the SMTS program.
The House bill contained no similar provision.
The House recedes with an amendment that would require the
Secretary of Defense to establish a program baseline for the
overall Space-Based Infrared System (SBIRS) program. The
baseline would include the following:
(1) overall program structure, including: (A) program cost
and an estimate of the funds required in each fiscal year in
which development and acquisition activities are planned, (B)
a comprehensive schedule with program milestones and exit
criteria, and (C) optimized performance parameters for each
segment of the integrated system;
(2) a development schedule for SMTS structured to achieve
the first launch of a Block I satellite in fiscal year 2002,
and initial operational capability (IOC) of the system in
fiscal year 2003;
(3) full integration of SMTS into the overall SBIRS
architecture; and
(4) establishment of the performance parameters of all
space segment components so as to optimize the performance of
the integrated system while minimizing unnecessary redundancy
and cost.
The provision adopted by the conferees would require the
Secretary of Defense to provide a report to the congressional
defense committees on the SBIRS program baseline not later
than 60 days after the enactment of this Act.
The conference provision would also establish the following
program elements for the SBIRS program:
(1) Space Segment High;
(2) Space Segment Low (SMTS); and
(3) Ground Segment.
The conference provision requires the SBIRS baseline to
include an SMTS IOC by fiscal year 2003 to support national
and theater missile defenses. The conferees understand that
the Air Force has defined this IOC as consisting of 12-18
satellites. The conferees urge the Air Force to make every
effort to achieve an 18 satellite IOC by fiscal year 2003.
In accelerating the SMTS program, it is not the conferees'
intent to reduce the priority and importance of the SBIRS
High components. The conferees endorse the schedule that the
Air Force has established for the SBIRS High components. The
SBIRS program should feature complementary and mutually
supportive elements that do not include excessive technical
and functional redundancy.
Although SMTS can, over time, become a multi-functional
sensor system capable of

[[Page H614]]
fulfilling missions such as technical intelligence and battlespace
characterization, the conferees direct the Air Force to
ensure that the SMTS Flight Demonstration System (FDS) and
Block I system be designed primarily to satisfy the missile
defense mission. Missions not related to theater and/or
national ballistic missile defense should not be allowed to
add significant cost, weight or delay to the SMTS FDS or
Block I system. This scaled-down approach will ameliorate the
technical challenges associated with an accelerated schedule
while contributing to overall affordability.
To support this schedule and missile defense focus, the
conferees direct the Secretary of Defense to commence SMTS
pre-engineering and manufacturing development (EMD)
activities in fiscal year 1996 and to ensure that the FDS and
Block I satellites are equipped with long-wave infrared
sensors. The conferees endorse the design characteristics
specified in the Senate report (S. Rept. 104-112) regarding
the objective SMTS system. The conferees have authorized
sufficient funds in fiscal year 1996 to commence these
activities and to prepare the way for a fiscal year 1998 FDS
launch.
Over time, as the Air Force gains operational experience
with the High and Low Block I systems, it is likely that SMTS
will be able to assume a much larger share of the SBIRS
requirements burden. In the meantime, the conferees urge the
Secretary of Defense to initiate technical and cost trade
studies among the SBIRS space systems and include any
preliminary findings and recommendations in the SBIRS
baseline report.
The budget request for SBIRS included $130.7 million for
demonstration/validation (Dem/Val), $152.2 million for EMD,
and $19.9 million for procurement. Of the funds requested for
Dem/Val, $114.8 million was for SMTS. The conferees agree on
the following authorizations:
(1) $265.7 million in PE 63441F for SBIRS Dem/Val, of which
$249.8 million is for SMTS; and
(2) $162.2 million in PE 64441F for SBIRS EMD, of which
$9.4 million is for the Miniature Sensor Technology
Integration (MSTI) program.
The conferees are aware of a recent proposal to increase
competition and reduce risk in the SMTS program through a
low-cost flight experiment. The conferees direct the Air
Force and BMDO to carefully assess the merits of this concept
and to include their joint findings and recommendations in
the SBIRS baseline report. If the Air Force Acquisition
Executive and the Director of BMDO certify to the
congressional defense committees that such a flight
experiment is in the overall interest of the SMTS program
(measured in terms of risk reduction and schedule
acceleration), the conferees authorize the use of up to $40.0
million of the funds authorized for SMTS in fiscal year 1996
to begin a low-cost flight experiment.
The conferees congratulate the Air Force and BMDO for
reaching agreement on the acquisition management relationship
for execution of the SMTS program. In light of the Memorandum
of Agreement between the Air Force Acquisition Executive and
the Director of BMDO, the Senate recedes on its language
dealing with management oversight of the SMTS program. As
with all aspects of the SMTS program, however, the conferees
will continue to monitor management oversight with great
interest. If the present management structure does not
fulfill the expectations of the conferees, or lead to
implementation of the guidance provided above, the conferees
will reconsider transferring SMTS back to BMDO.
Defense Nuclear Agency programs (sec. 217)
The budget request contained $219.0 million for research
and development at the Defense Nuclear Agency.
The Senate amendment contained a provision (sec. 216) that
would authorize $242.0 million for fiscal year 1996 for
research and development programs (PE 62715H), a $23.0
increase to the budget request. The increase would provide:
$3.0 million for the establishment of the tunnel
characterization/neutralization program; $6.0 million for the
establishment of a long-term radiation tolerant
microelectronics program and require the Secretary to report
to Congress on the program and future year funding; $4.0
million for the electro-thermal gun program; and transfer the
Air Force thermionics program and any unobligated funds to
the DNA and provide $10.0 to accelerate that program.
The House report (H. Rept. 104-131) would provide a $4.0
million increase to the budget request for the electro-
thermal gun technology.
The conferees agree to a provision that would authorize
$241.7 million, including a reduction of $5.0 for
environmental pollutant research. This represents a $27.7
million increase over the budget request. Of that amount,
$3.0 million shall be used for a tunnel characterization/
neutralization program, $4.0 million shall be available for
the electro-thermal gun technology program, $6.0 million
shall be available for the establishment of a long-term
radiation tolerant microelectronics program and development
of long pulse, high power microwave technology, $10 million
shall be available for the thermionics program; and $4.0
million shall be available for the counterterror explosives
research program. Additionally, the Secretary is directed to
provide a report to Congress, 120 days after enactment of
this Act, on the conduct of the long-term radiation tolerant
microelectronics program and future years funding for this
program. The remainder of the increase should be used to
supplement the tunnel characterization/neutralization program
and the long-term radiation tolerant microelectronics
program, as appropriate.

TUNNEL CHARACTERIZATION/NEUTRALIZATION PROGRAM

The conferees understand that the Department of Defense has
allocated $10.0 million of funds requested in the budget for
the counterproliferation support program for a tunnel
characterization/neutralization program. Although the DNA
tunnel characterization/neutralization target tests and
program would be executed independently of the Department's
counterproliferation efforts, the conferees expect close
coordination between the two programs to ensure that common
concerns are addressed. The conferees urge the DNA to
utilize, to the maximum extent possible, the Nevada Test Site
infrastructure for the tunnel target characterization/
neutralization tests and program.

thermionics

The conferees directed the transfer of the thermionics
conversion technology from the Air Force Weapons program (PE
62601F), together with all unobligated funds authorized and
appropriated in prior years, totalling up to $12.0 million,
to the Defense Nuclear Agency program (PE 62715H).
Counterproliferation support program (sec. 218)
The budget request contained $108.2 million for the defense
counterproliferation support program.
The Senate amendment contained a provision (sec. 217) that
would authorize $144.5 million for the program, a $36.3
million increase to the budget request. Of the funds
authorized in this section, $6.3 million would be available
to the Special Operations Command (SOCOM) for purposes of
broadening SOCOM's counterproliferation activities and $30.0
million would be available for the continuation of the Army
tactical antisatellite technologies (ASAT) program (PE
63392A) for a user operation evaluation system (UOES)
contingency capability. The provision would authorize the
Department of Defense to transfer up to $50.0 million from
fiscal year 1996 defense research and development accounts
for counterproliferation support activities.
The House bill would authorize the budget request for the
counterproliferation support program and include $11.0
million for the development of improved nuclear detection and
forensics analysis by the Advanced Projects Research Agency
(ARPA).
The conferees agree to a provision that would authorize
$138.2 million for the counterproliferation support program,
of which $30.0 million shall be available for the
continuation of the Army tactical antisatellite technologies
program. Of the funds authorized in fiscal year 1996, the
conferees recommend that $1.5 million be available for the
exploration of the ``deep digger'' concept for hard target
characterization, and that $5.0 million be available for the
high frequency active auroral research program (HAARP).
The conferees acknowledge concerns raised in the Senate
report (S. Rept. 104-112) regarding the need for the
Department to continue the aggressive pursuit of discriminate
detection and attack capabilities of deep underground
structures. The Department should continue to develop the
capability to detect and defend against biological agents
through the use of technologies, available through
universities and non-profit industries, that have been
developed for biological detection, emergency preparedness
and response. The Department should also continue to develop
a capability to counter technological gains by proliferant
countries that could gain access to a broad mix of
commercial-off-the-shelf space technologies which could
provide these countries with significant space capabilities
or access to space-derived data and could negatively impact a
spectrum of multi-service and joint warfighting capabilities.

tactical antisatellite technology

The conferees direct the Secretary of Defense to include
sufficient resources in fiscal year 1997, and throughout the
future year defense plan (FYDP), for the following: a user
operation evaluation system (UOES) contingency capability to
produce 10 kill vehicles with the appropriate boosters by
fiscal year 1999; a review to determine the appropriate
management structure and military service responsibility;
report on the current status of antisatellite development
worldwide and the degree to which United States antisatellite
development efforts may contribute to similar development
among other nations and their impact on U.S. operational
capabilities; and to report the Department's recommendations
to Congress in the fiscal year 1997 budget request. To avoid
significant or lengthy delays in developing a needed
capability, the conferees direct the Department to leverage,
or build upon the current Army tactical antisatellite
technology program. The conferees note that authorization of
funds for continued development of the tactical antisatellite
system does not constitute a decision to deploy the system.

mission planning and analysis

The conferees recommend that $2.5 million from Air Force
operation and maintenance (O&M) be made available for
Strategic Air Command (STRATCOM) mission planning and
analysis. The STRATCOM program provides support to the
regional commanders-

[[Page H615]]
in-chief (CINCs) in advance planning for counterproliferation
contingencies. This program aids commanders in identifying
and characterizing current and emerging proliferation
threats. In instances in which proliferation activities
challenge the interests of the United States and its military
forces and operations, STRATCOM mission planning and analysis
capabilities allow defense planners to: identify a variety of
potential military targets; assess the effectiveness,
consequences and costs of military options; and develop
alternative contingency plans that would maximize mission
effectiveness, and minimize the risks, costs, and collateral
effects.

improved nuclear detection and forensic analysis capabilities

Due to an increase in international terrorism and attempts
by criminal elements to acquire weapons-grade nuclear
material, the conferees recommend $11.0 million to accelerate
the development of improved nuclear detection and forensic
analysis capabilities in PE 62301E, project ST23. The
conferees direct the ARPA to closely coordinate its efforts
in this area closely coordinate with the counterproliferation
support program manager in the Department of Defense and the
interagency group on counterproliferation.
Nonlethal Weapons Program (sec. 219)
The Senate bill contained a provision (sec. 218) that would
establish a new, consolidated program for non-lethal systems
and technology. The program would be managed by the Office of
Strategic and Tactical Systems of the Under Secretary of
Defense for Acquisition and Technology. The provision would
create a new program element within the defense budget for
this program, and transfer funds from PE 603570D, PE 603750D,
PE 603702E, and PE 603226E into this new program element.
The House bill contained no similar provision.
The House recedes with an amendment that would express
congressional recognition of the U.S. armed forces increasing
role in operations other than war, recognition of support for
the use of nonlethal weapons and systems across the spectrum
of conflict, and concern that development of these
technologies is being spread across the budgets of the
military services and defense agencies. The conferees direct
the Department of Defense to submit a report to Congress by
February 15, 1996 and direct the Secretary of Defense to
assign responsibility for the nonlethal weapons program to an
existing office within the Office of the Secretary of Defense
or designate an executive agent from the military services,
to establish centralized responsibility for development and
fielding of nonlethal weapons technology. The conferees
authorize $37.2 million in a new defense program element for
nonlethal weapons programs and nonlethal technologies
programs.
The conferees believe that centralized responsibility for
the nonlethal weapons program will ensure effective program
management and expeditious development, acquisition, and
fielding of nonlethal weapons and systems. The conferees
further understand that both the Department of the Army and
the Marine Corps are the primary users of these technologies
and recommend the designation of either military service as
the executive agent for this important program. Further, the
conferees understand that the Department of the Army and the
Marine Corps have closely coordinated their efforts in this
area and expect this coordination to continue to ensure
centralized management and improved budgetary focus for the
nonlethal weapons program. The provision would also require
the Department to report to Congress by February 15, 1996 on
the designation of the executive agent for oversight of the
program, the acquisition plan, the time frame for fielding
systems, current and anticipated military requirements, and
the Department of Defense policy regarding the nonlethal
weapons program.
Federally-Funded Research and Development Centers (sec. 220)
The House bill contained a provision (sec. 257) that would
require the Secretary of Defense and the Secretaries of the
Army, Navy, and Air Force to reevaluate the functions of
Federally-Funded Research and Development Centers (FFRDCs)
and to achieve certain reductions, consolidations and
management goals. The provision would limit FFRDC funding to
$1.15 billion and reduce funding for FFRDCs and University-
Affiliated Research Centers (UARC) by $90.1 million.
The Senate amendment contained a provision (sec. 219) that
would require an undistributed reduction in FFRDC funding of
$90.0 million, below the ceiling for fiscal year 1995, and
would establish a statutory ceiling for FFRDCs of $1.2
billion in fiscal year 1996.
The Senate recedes with an amendment. The conferees agree
to reduce the funding for FFRDCs and UARCs by $90.0 million
in fiscal year 1996 and direct that not more than $9.0
million of this reduction be applied to funding for UARCs.
The conferees have included language that would require the
Secretary of Defense to manage the UARCs at the fiscal year
1995 level. The conferees direct the Secretary of Defense to
ensure adequate funding in fiscal year 1996 for those FFRDCs
that engage in studies and analysis for the Office of the
Secretary of Defense and the services. The conferees also
direct the Secretary to examine the possibility of increasing
the use of the Software Engineering Institute in support of
command, control, communications, computing, and intelligence
programs managed by the Office of the Secretary of Defense.
Joint seismic program and global seismic network (sec. 221)
The Senate amendment contained a provision (sec. 224) that
would authorize $9.5 million of unobligated fiscal year 1995
funds in Air Force research and development for the joint
seismic program (JSP) and the global seismic network (GSN) to
provide more robust monitoring research and expanded seismic
monitoring of potential nuclear tests.
The House bill contained no similar provision.
The conferees agree to a provision that would authorize
$9.5 million in fiscal year 1996 for the joint seismic and
global seismic network programs. The conferees understand
that no future year funds would be required for this program.
Further, the conferees direct the Department of Defense
Comptroller to release the funds in a timely manner so that
the programs can be completed.
Hydra-70 rocket product improvement program (sec. 222)
The Senate amendment contained a provision (sec. 113) that
would prohibit the obligation of funds to procure Hydra-70
rockets until the Secretary of the Army submitted
certifications regarding: identification of causes and
technical corrections of Hydra-70 rocket failures;
comparative cost of correcting all Hydra-70 rockets versus
the non-recurring costs of acquiring improved rockets; review
and qualification of commercial, nondevelopmental systems to
replace Hydra-70 rockets; the availability of training
rockets to meet Army requirements; and the attainment of
competition in future procurements of training rockets.
The House bill contained no similar provision.
The House recedes with an amendment.
The conferees agree to authorize up to $10.0 million for
full qualification and operational platform certification of
a Hydra-70 rocket with a 2.75-inch rocket motor with
composite propellant, for use on the AH-64D Apache
helicopter.
Limitation on obligation of funds until receipt of electronic
combat consolidation master plan (sec. 223)
The conferees agree to a provision that limits the
obligation of appropriations for PE 65896A, PE 65864N, PE
65807F, and PE 65804D until 14 days after the Department of
Defense submits to the congressional defense committees its
master plan for the consolidation of electronic combat test
and evaluation assets.
The House report (H. Rept. 103-499) directed the Secretary
of Defense to develop a master plan for future consolidation
of all DOD electronic combat test and evaluation assets.
Further, the House report directed that no fiscal year 1995
or prior year funds be used to transfer or consolidate
electronic combat test and evaluation assets until 30 days
after the submission of the master plan to the congressional
defense committees. To date, the master plan has not been
provided to the congressional defense committees and funds
continue to be obligated for purposes that contravene the
House report language.
Requirement for report on reductions in research,
development, test, and evaluation (sec. 225)
The conferees agree to a provision that requires the Under
Secretary of Defense (Comptroller) to submit a report to the
congressional defense committees by March 15, 1996 detailing
the allocation of the following reductions in research,
development, test, and evaluation required by the Department
of Defense Appropriations Act of 1996: (1) general
reductions; (2) reductions to reflect savings from revised
economic assumptions; (3) reductions to reflect the funding
ceiling for federally funded research and development
centers; and (4) reductions for savings through improved
management of contractor automatic data processing cost
charged through indirect rates on Department of Defense
acquisition contracts.
Advanced field artillery system (Crusader) (sec. 226)
The House bill contained a provision (sec. 255) that would
impose spending authority limitations on the Secretary of the
Army, unless certain technical performance criteria are
achieved in the Crusader program. The provision would permit
the Secretary to significantly alter the Crusader acquisition
plan for the cannon propellant, if it is required to achieve
the objectives of the Advanced Field Artillery System,
provided notification is given to the defense committees of
the Senate and House of Representatives.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would terminate
funding for the liquid propellant portion of the Crusader
program in the event that the Secretary fails to provide a
report to the congressional defense committees by August 1,
1996, documenting that significant progress has been made in
the liquid propellant and regenerative liquid propellant gun,
in accordance with the acquisition program baseline
objectives.
Demilitarization of conventional munitions, rockets, and
explosives (sec. 227)
The House bill contained a provision (sec. 263) that would
authorize $15.0 million for the establishment of an
integrated program for the development and demonstration of
environmentally compliant technologies for

[[Page H616]]
the demilitarization of conventional munitions, explosives, and rocket
motors, and indicated specific technologies that should be
considered in the program.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would delete
reference to specific technologies that should be considered
in the program. The amendment reflects a conference agreement
to authorize $15.0 million in PE 63104D for the Conventional
Munitions, Rockets, and Explosives Demilitarization account.
The conferees are concerned about requirements for disposal
by the military services and defense agencies of growing
numbers of unserviceable, obsolete, or non-treaty compliant
munitions, rocket motors and explosives. As environmental
constraints increasingly restrict the traditional disposal
methods of open burning or open detonation, development and
demonstration of environmentally compliant technologies for
this purpose become even more urgent.
The conferees believe that a centralized conventional
munitions and explosives disposal program should be
established for this purpose within the Department of Defense
(DOD) under a single program element, and that consideration
should be given to the model of the Large Rocket Motor
Demilitarization program, centrally managed by the Army as
executive agent, with the requirements of the military
services integrated through the Joint Ordnance Commanders'
Group. In such a program, the conferees encourage the
consideration of a range of competitively selected potential
resource recovery and alternative demilitarization
technologies, including (but not limited to) cryogenic
washout, supercritical water oxidation, molten metal
pyrolysis, plasma arc, catalytic fluid bed oxidation, molten
salt pyrolysis, plasma arc, catalytic fluid bed oxidation,
molten salt oxidation, incineration, critical fluid
extraction and ingredient recovery, and underground contained
burning.
The conferees direct the Secretary of Defense to submit a
report of the DOD plan for the establishment of such a
program to the congressional defense committees by March 31,
1996.
Defense airborne reconnaissance program (sec. 228)
The budget request included $525.2 million for research and
development for the Defense airborne reconnaissance program
(DARP).
The House bill would add a total of $121.6 million to the
requested amount. The Senate amendment would increase the
request by $33.0 million. Details of the adjustments in the
House bill and the Senate amendment, as well as the final
conference agreement, are displayed in the table below:

------------------------------------------------------------------------
Budget House Senate Conference
request bill amendment agreement
------------------------------------------------------------------------
Total.................. $525.2 +$121.6 +$33.0 +$114.8
------------------------------------------
UAV programs:
Joint tactical maneuver.... ........ -36.8 ......... -10.0
Hunter................... ........ ........ ......... ..........
Navy variant (VTOL)...... ........ ........ ......... +12.5
Tier II.................... ........ +25.9 ......... +25.3
Tier II+................... ........ +60.0 ......... ..........
Tier III................... ........ +35.0 ......... +18.0
U-2 upgrade programs:
SYERS...................... ........ +14.0 ......... +14.0
Defensive systems.......... ........ ........ +13.0 +10.0
SIGINT..................... ........ ........ +20.0 +20.0
PGMs....................... ........ -10 ......... ..........
Other programs:
CIGGS...................... ........ +16.0 ......... +11.0
Common data link........... ........ +0.5 ......... ..........
EO framing sensors......... ........ +5.0 ......... +7.0
MSAG....................... ........ +12.0 ......... +8.0
------------------------------------------------------------------------

MANNED AND UNMANNED RECONNAISSANCE SYSTEMS

The conferees remain optimistic about the future
contributions of unmanned aerial vehicle (UAV) systems to the
Department of Defense's (DOD) reconnaissance missions.
However, the conferees remain unwilling to sacrifice proven
manned systems in the near-term for the promise of unproven
future systems. Further, the conferees believe five major UAV
programs are overly redundant. The conferees are aware of the
Department's intent to reduce the number of UAVs to satisfy
the tactical, theater, and strategic missions. The conferees
agree that it is important for the Department to satisfy
these three distinct missions.
Further, the conferees believe the Department's endurance
UAV programs must be viewed in the larger context of the
broad area search/wide area surveillance missions. The
conferees are concerned that the current and projected array
of sensors (including Tier II+ and Tier III- UAVs, SR-71, U-
2, and national systems) are not simply ``complementary'',
but are ``duplicative''. The conferees will, therefore,
remain extremely interested in the Department's future
directions with respect to high altitude endurance UAV
efforts.

MANEUVER UAV

The budget request included $36.8 million for the maneuver
UAV.
The House will would deny any authorization for the
maneuver UAV because the Department had failed to provide
either a joint operational requirements document (JORD) or a
cost and operational effectiveness analysis (COEA) in a
timely manner.
The Senate amendment would approve the budget request.
The conferees agree to authorize $26.8 million for the
maneuver UAV. The conferees are disappointed that the
Department took so long to complete the JORD and the COEA.
The conferees hope that the results of the ongoing review of
the various UAV programs will be provided to the
congressional defense and intelligence committees in a more
timely fashion.

joint tactical uav

The conferees remain particularly concerned about the
Department's inability to develop and pursue a cohesive joint
tactical UAV (JT-UAV) master plan for longer than a four
month period. The conferees direct the Department not to use
appropriated fiscal year 1996 funds to procure production
Hunter UAV systems or additional low rate initial production
units beyond those already ordered. The conferees intend that
this prohibition remain in effect until the Department
provides the congressional defense and intelligence
committees with the results of its UAV program review.
Accordingly, if the Department's review results in the
cancellation of one or more of the currently planned UAV
programs, the conferees direct the Department to seek
reprogramming actions to use those funds to satisfy other
CINC near-term reconnaissance support requirements. Any funds
made available as a result of Department decisions on UAVs
will remain within the DARP account. Of any resources made
available from UAV restructuring, the conferees direct that
the Department use them to fully fund the U-2 sensor upgrades
described later in this section. Any additional excess
resources over those used for U-2 sensor upgrades may be used
for the naval variant (VTOL). Further, the conferees
specifically deny authorization of any fiscal year 1996 funds
for marinization of the Hunter UAV.

naval variant uav

The conferees agree that development and evaluation of a
joint tactical UAV (JT-UAV) short or vertical take-off and
landing (STOL/VTOL) variant for naval applications should be
continued and structured on existing successful efforts. The
conferees agree to authorize an additional $12.5 million to
support continued development and evaluation of VTOL JT-UAV
variants, as detailed in the Senate report (S. Rept. 104-
112). The conferees intend that the Department limit its air
vehicle evaluation to items that are low risk, currently
available off-the-shelf, and have the demonstrated potential
to meet joint tactical UAV interoperability and performance
requirements.

medium altitude endurance uav (predator)

The House bill would authorize an additional $25.9 million
for the Tier II medium altitude endurance UAV (Predator).
The Senate amendment included a provision (sec. 131) that
would deny funds for the Tier II system.
The Senate recedes.
The conferees agree to authorize an additional $25.3
million for another Predator system (air vehicles and ground
station) and replacement air vehicles. The conferees are
encouraged by the successes of the Predator advanced concept
technology program, and particularly by the theater
commanders' praise for its contributions in the Bosnia area.
The conferees strongly support continuation of this ACTD, and
encourage the Department to take the necessary steps to make
a full production decision. The conferees believe this
vehicle could satisfy multiple operational roles, including
the theater and maritime roles. The conferees encourage the
Department to develop plans for a maritime use of this
vehicle. Such planning should include conducting an
operational demonstration at sea. Finally, the conferees
agree to authorize all prior year allocated funds.

HIGH ALTITUDE ENDURANCE UAVS

The House bill would authorize an additional $60.0 million
for the Tier II+ and $35.0 million for the Tier III-.
The Senate amendment would authorize the budget request for
both programs.
The House recedes on Tier II+. The Senate recedes on the
Tier III-. The conferees agree to authorize an additional
$18.0 million for Tier III-.
As with the JT-UAV, the conferees expect the Department to
make acquisition decisions on this issue based on operational
requirements. However, the conferees emphasize that the
Department needs a more capable, low observable vehicle. The
conferees agree that the Department should use the additional
$18.0 million for Tier III- to buy the third air vehicle in
fiscal year 1996, instead of fiscal year 1997. The conferees
direct the Department to provide the congressional defense
and intelligence committees with a report on the operational
user needs for such a vehicle. If the current estimate of the
Tier III- system capabilities fall short of those needs, the
Department should outline its technical proposals to improve
this vehicle, in response to those user requirements.

U-2 SENSOR UPGRADES

The House bill would authorize an additional $14.0 million
to upgrade all Senior Year electro-optical reconnaissance
sensors (SYERS) to the newest configuration, upgrade existing
ground stations, and improve geolocational accuracy through
various product improvements.
The Senate amendment would authorize an additional $20.0
million to initiate the remote airborne SIGINT system upgrade
program.
The Senate report (S. Rept. 104-112) contained a technical
error in the table for Research, Development, Test, and
Evaluation (RDT&E), Defense-Wide, that shows an increase in
the DARP PE 35154D, line 102, rather than in line 124. This
error was facilitated

[[Page H617]]
by the Department's budget exhibit for RDT&E programs (R-1) in which
both of these budget lines are associated with the same
program element. The conferees encourage the Defense Airborne
Reconnaissance Office (DARO) to carry a single R-1 line for
an individual program element in the future.
The conferees view with concern the DARO's lack of emphasis
on manned reconnaissance upgrades, and include a provision
that requires the Director of the DARO to expeditiously carry
out those upgrades. The conferees agree to authorize $34.0
million to meet U-2 sensor upgrade requirements, and direct
the Secretary of Defense to provide a report on the
Department's plans to obligate funds for U-2 upgrades prior
to February 1, 1996.

U-2 DEFENSIVE SYSTEMS

The conferees agree to authorize $10.0 million to upgrade
U-2 defensive systems for the purposes specified in the
Senate Report (S. Rept. 104-112).

COMMON IMAGERY GROUND/SURFACE SYSTEM (CIGSS)

The budget request included $161.8 million for the CIGSS
effort.
The House bill would authorize an additional $16.0 million.
This increase would be used to mitigate a near-term funding
shortfall for DARO's ``migration'' of the various imagery
ground stations to a common architecture.
The Senate amendment would approve the budget request.
The conferees agree to authorize an additional $11.0
million for this effort.

INTELLIGENCE DISSEMINATION

The budget request included funds for numerous intelligence
dissemination systems and data links.
The House bill would restrict the use of funds pending the
Department's development of a coherent, long-term
intelligence dissemination architecture and a plan for
development of a joint tactical transceiver (JTT).
The Senate amendment would authorize the requested amounts.
The House recedes.
The conferees are pleased with the Department's response to
the House bill provision. The conferees believe that the
Department is moving in the right direction to ensure service
interoperability and to reduce the number of unique tactical
intelligence transceivers. Additionally, the conferees are
aware that the Assistant Secretary of Defense for Command,
Control, Communications, and Intelligence is monitoring
efforts to develop advanced software reprogrammable radios.
The conferees strongly encourage continued involvement in
this technology development, as it appears to have great
potential for future application in the JTT program. The
conferees will continue to monitor the progress of the
Department's approach.

ELECTRO-OPTICAL FRAMING SENSOR DEVELOPMENT

The House would authorize an additional $5.0 million to
continue development and evaluation of airborne electro-optic
framing sensor and multi-spectral framing technologies with
on-chip forward motion compensation. These improved
capabilities could be used to support precision targeting.
The Senate amendment included no similar adjustment.
The conferees agree to authorize $7.0 million for this
purpose.
The conferees are pleased with the results of the four
million picture element (four mega-pixel) framing
demonstration. The conferees encourage the Department to
program funding to accelerate the four mega-pixel and the 25
mega-pixel sensor initiatives.

MULTI-FUNCTION SELF-ALIGNED GATE TECHNOLOGY

The conferees agree to authorize $8.0 million for multi-
function self-aligned gate (MSAG) technology for the purposes
specified in the House report (H. Rept. 104-131).

JOINT AIRBORNE SIGINT ARCHITECTURE

The budget request included $88.8 million for the joint
airborne signals intelligence (SIGINT) architecture (JASA)
program.
The House bill would restrict obligation of fiscal year
1996 funds for JASA to no more than 25 percent of available
funds until the Department submits an analysis and report
that includes a comparison of future years defense programs
(FYDP) and life cycle costs for development and fielding of
the joint airborne SIGINT system (JASS), and that address a
more conventional, evolutionary, product-improvement
approach.
The Senate amendment would authorize the requested amount.
The House recedes on the funding restrictions.
Despite their support for the evolving concept and
development of JASA, the conferees remain concerned about
several issues:
(1) the Department's ability to sustain current operational
systems;
(2) elimination of the potential for airborne SIGINT
modernization gaps prior to fielding JASA components;
(3) the projected costs of the JASS program; and
(4) the risk that current approaches may sacrifice near and
mid-term operational requirements for promised long-term
common solutions.
The conferees believe that there is a need to continue
interim, affordable, incremental upgrades, and to provide
quick reaction capability improvements to meet emerging
requirements, while continuing the JASA architectural
approach. The conferees encourage competitive evolutionary
solutions to satisfy existing and projected SIGINT
requirements, and urge the earliest delivery of
architecturally compliant components for evolving current and
future systems. The conferees expect future budget requests
for the DARO to include funding for these efforts. The
conferees direct the DARO Director to certify to the
congressional defense and intelligence committees that the
individual SIGINT systems will be upgraded to incorporate
these interim needs, as identified by the operational users.
The conferees direct the Department to provide an interim
report by March 1, 1996, with a completed report by August 1,
1996, that includes:
(1) an independent cost and operational effectiveness
analysis that compares the FYDP and life-cycle costs of the
JASS program to an evolutionary product improvement approach,
based on equivalent system performance;
(2) an evaluation of cost, technical and schedule risks, as
well as a comparison of technical requirements and JASS
performance; and
(3) the Department's assessment of its ability to predict
both the future threat and technology environments necessary
to determine whether a single approach is viable and in the
nation's best interests.
Finally, to ensure that there are no airborne SIGINT
capability gaps during the transition to JASA, DARO is
directed to determine and implement necessary quick-reaction
improvements to existing airborne systems. The conferees
intend that the Department pursue a balanced approach to JASA
development that allows the services to program funds for
such evolutionary upgrades, provided there is compliance with
an overall migration to the JASA architecture.
Ballistic missile defense policy (secs. 231-253)
The House bill contained eight provisions (secs. 231-238)
that collectively would be called the ``Ballistic Missile
Defense Act of 1995.'' The House bill contained four
additional provisions (secs. 241-244) that would also deal
with matters related to ballistic missile defense (BMD).
The Senate amendment contained eleven provisions (secs.
231-241) that collectively would be called the ``Missile
Defense Act of 1995.'' The Senate amendment contained two
additional provisions (secs. 227 and 243) that would also
deal with matters related to BMD.
The conference agreement combines the House and the Senate
BMD provisions into two subtitles as described below.

Subtitle C--Ballistic Missile Defense Act of 1995

Short title (sec. 231)
The House bill contained a provision (sec. 231) that would
entitle this group of provisions the ``Ballistic Missile
Defense Act of 1995.''
The Senate amendment contained a provision (sec. 231) that
would use a different title--``Missile Defense Act of
1995''--reflecting the fact that the Senate version included
a provision dealing with cruise missile defense.
The Senate recedes.
Findings (sec. 232)
The Senate amendment contained a provision (sec. 232) that
would establish a series of congressional findings as the
rationale for developing and deploying theater and national
ballistic missile defenses.
The House bill contained a provision (sec. 242) that would
make several similar findings.
The House recedes with an amendment merging the House and
Senate findings.
Ballistic Missile Defense Policy (sec. 233)
The House bill contained a provision (sec. 232) that would
establish a United States policy to: (1) deploy at the
earliest practical date highly effective theater missile
defenses; and (2) deploy at the earliest practical date a
national missile defense (NMD) system that is capable of
providing a highly effective defense of the United States
against limited ballistic missile attacks.
The Senate amendment contained a similar provision (sec.
233) that would establish a United States policy to: (1)
deploy as soon as possible affordable and operationally
effective theater missile defenses; (2) develop for
deployment a multiple-site national missile defense system
(that can be augmented to a layered defense over time) while
initiating negotiations to amend the Anti-Ballistic Missile
(ABM) Treaty; (3) ensure congressional review prior to a
decision to deploy the NMD system; (4) improve existing
cruise missile defense systems and deploy as soon as
practical defenses against advanced cruise missiles; (5)
pursue a focused research and development program to provide
follow-on ballistic missile defense options; (6) employ
streamlined acquisition procedures in developing and
deploying missile defenses; (7) seek a cooperative transition
to a regime that does not feature mutual assured destruction
and an offense-only form of deterrence as the basis for
strategic stability; and (8) carry out the policies,
programs, and requirements of the Missile Defense Act through
processes specified within, or consistent with, the ABM
Treaty.
The House recedes with an amendment to establish a United
States policy to: (1) deploy affordable and operationally
effective

[[Page H618]]
theater missile defenses to protect forward-deployed and expeditionary
elements of the armed forces of the United States and to
complement and support the missile defense capabilities of
the forces of coalition partners and allies of the United
States; and (2) seek a cooperative transition to a regime
that does not feature mutual assured destruction and an
offense-only form of deterrence as the basis of strategic
stability.
Theater Missile Defense Architecture (sec. 234)
The House bill contained a provision (sec. 233) that, in
part, would direct the Secretary of Defense to develop and
deploy at the earliest practical date advanced theater
missile defense (TMD) systems. The House bill contained
another provision (sec. 236) that would establish a ballistic
missile defense program accountability report.
The Senate amendment contained a provision (sec. 234) that
would provide detailed policy guidance related to theater
missile defense. The provision would establish a core theater
missile defense program (the Theater High Altitude Area
Defense system, the Navy Upper Tier system, the Patriot PAC-3
system, and the Navy Lower Tier system) with programmatic
milestones for each core system, require that the systems in
the core program be interoperable and mutually supporting,
establish guidelines for creating new core systems, and
require the Secretary of Defense to provide the congressional
defense committees a TMD Architecture report along with the
fiscal year 1997 budget submission.
The House recedes with an amendment to integrate elements
of the House's ballistic missile defense program
accountability provision into a revised TMD reporting
requirement, and to make technical and clarifying changes.
Included is a requirement that the Secretary of Defense
report on the following matters to the Senate Committee on
Armed Services and the House Committee on National Security
whenever the Secretary issues an ABM Treaty compliance
certification for any TMD system: (1) the compliance policy
applied in preparing such a certification; (2) how the policy
applied differs from the policy stated in section 235(b)(1)
of this Act (the so-called ``demonstrated standard''); and
(3) how the application of that compliance policy (rather
than the ``demonstrated standard'') will affect the cost,
schedule, and performance of the TMD system being considered.
Prohibition on use of funds to implement an international
agreement concerning theater missile defense systems
(sec. 235)
The House bill contained a provision (sec. 235) that would
establish a theater missile defense demarcation standard (the
so-called ``demonstrated standard'' based on the range and
speed of the target) and would prohibit the obligation or
expenditure of funds appropriated for the Department of
Defense to implement or employ any other standard.
The Senate amendment contained a related provision (sec.
238) that would: (1) express the sense of Congress that the
``demonstrated standard'' is the appropriate standard for
defining a TMD demarcation; and (2) prohibit the use of funds
appropriated for the Department of Defense in fiscal year
1996 to implement an international agreement that is
inconsistent with this standard, unless such agreement
receives Senate advice and consent to ratification, or is
specifically approved in a subsequent Act.
The House recedes with a clarifying amendment.
Ballistic missile defense cooperation with allies (sec. 236)
The House bill contained a provision (sec. 242) that, in
part, would endorse cooperation in the area of ballistic
missile defense between the United States and its allies and
coalition partners, and that would urge the President to: (1)
pursue high-level discussions with allies of the United
States and selected other states on the means and methods by
which the parties can cooperate in the development,
deployment, and operation of ballistic missile defenses; (2)
take the initiative within the North Atlantic Treaty
Organization to develop a consensus for deployment of BMD by
the Alliance; and (3) seek agreement with U.S. allies and
selected other states on steps the parties can take to reduce
the risks posed by the threat of limited ballistic missile
attacks.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment to include the House
language on BMD cooperation with allies as a free-standing
provision.
ABM Treaty Defined (sec. 237)
The House bill contained a provision (sec. 237) that would
define the ABM Treaty.
The Senate amendment contained a similar provision.
The Senate recedes with a technical amendment.
Repeal of Missile Defense Act of 1991 (sec. 238)
The House bill contained a provision, (sec. 238) that would
repeal the Missile Defense Act of 1991.
The Senate amendment contained a similar provision (sec.
241(1)).
The Senate recedes.

Subtitle D--Other Ballistic Missile Defense Provisions

Ballistic Missile Defense Program Elements (sec. 251)
The Senate amendment contained a provision (sec. 239) that
would establish seven program elements for the Ballistic
Missile Defense Organization's budget.
The House bill contained no similar provision.
The House recedes with an amendment creating eight program
elements.
Testing of theater missile defense interceptors (sec. 252)
The House bill contained a provision (sec. 243) that would
amend subsection (a) of section 237 of Public Law 103-160,
pertaining to the testing of theater missile defense
interceptors.
The Senate amendment contained a similar provision (sec.
227) that also would relate to the testing of theater missile
defense interceptors.
The Senate recedes.
Repeal of missile defense provisions (sec. 253)
The Senate amendment contained a provision (sec. 241) that
would repeal ten outdated BMD-related provisions of law.
The House bill contained a similar provision (sec. 244)
that would repeal six outdated BMD-related provisions of law.
The House recedes with an amendment. The Conferees agree to
repeal nine outdated BMD-related provisions of law.

Subtitle E--Miscellaneous Reviews, Studies, and Reports

Precision guided munitions (sec. 261)
The Senate amendment contained a provision (sec. 215) that
would require the Secretary of Defense, not later than
February 1, 1996, to submit a report that contains an
analysis of the full range of precision guided munitions
(PGM) in production, and in research, development, test and
evaluation. The analysis would address the following:
(1) The types of precision guided munitions needed to
destroy various service target classes;
(2) The feasibility of joint development programs to meet
the needs of various Services; and
(3) The economy and effectiveness of continued acquisition
of ``interim'' PGMs.
The House bill contained no legislative provision on PGMs,
but directed the Secretary to conduct a similar analysis in
its report (H. Rept. 104-131) accompanying the bill.
The conferees agree to the Senate provision, with an
amendment that would extend the reporting deadline to April
15, 1996.
Review of C4I by National Research Council (sec. 262)
The House bill contained a provision (sec. 256) that would
direct the Secretary of Defense to enter into a contract with
the National Research Council of the National Academy of
Sciences to conduct a review of Department of Defense
programs for command, control, communications, computers, and
intelligence. The study would be conducted over a two-year
period and $900.0 thousand would be available for the cost of
the study.
The Senate amendment contained no similar provision.
The Senate recedes.
Analysis of consolidation of basic research accounts of
military departments (sec. 263)
The House bill contained a provision (sec. 252) that would
direct the Secretary of Defense to fund the equivalent of a
cost and operational effectiveness study of the consolidation
of the indivdiual services' basic research accounts to
determine potential infrastructure savings.
The Senate amendment contained no similar provision.
The Senate recedes.
Change in the annual reporting period, from calendar to
fiscal year, on certain contracts with colleges and
universities. (sec. 264)
The House bill contained a provision (sec. 253) that would
amend section 2361 of title 10, United States Code, to change
the annual reporting period from the preceding ``calendar''
year to each preceding ``fiscal'' year on the use of
competitive procedures for awards of research and development
contracts, and the award of construction contracts to
colleges and universities.
The Senate amendment contained no similar provision.
The Senate recedes.
Aeronautical research and test capabilities assessment (sec.
265)
The House bill contained a provision (sec. 260) that would
require the Secretary of Defense to assess aeronautical
research and test facilities and capabilities of the United
States, and to provide a report to the congressional defense
committees detailing the findings and recommendations of the
assessment.
The Senate amendment contained no similar provision.
The Senate recedes.

Subtitle F--Other Matters

Advanced lithography program (sec. 271)
The House bill contained a provision (sec. 214) that would
amend section 216 of the National Defense Authorization Act
for Fiscal Year 1995 (Public Law 103-337). The provision
would permit the Director of the Advanced Research Projects
Agency (ARPA) to consider Semiconductor Industry Association
and Semiconductor Technology Council recommendations as
advisory and would allow ARPA to establish priorities and
funding levels for the program, consistent with the best
interests of national security. The provision would also add
a goal that the program ensure that the use of lithographic
processes, being developed by American-owned manufacturers in
the United States, would lead to superior performance
electronics systems for the Department of Defense.

[[Page H619]]

The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would clarify the
term ``American-owned manufacturer'' to mean that it would be
consistent with the definition of ``United States-owned
company'' and ``United States incorporated company'' in
section 278 (n) of title 15, United States Code.
Enhanced fiber optic guided missile system (sec. 272)
The House bill contained a provision (sec. 215) that would
require the Secretary of the Army to certify whether there is
a requirement for the enhanced fiber optic guided missile
(EFOG-M) system, and whether there is a cost and
effectiveness analysis supporting such requirement. The
provision would also limit funding for the EFOG-M program if
the test of operational missiles and associated fire units
are not delivered on time and within current cost estimates.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would require the
certification of the Secretary of the Army regarding a
requirement and a cost and effectiveness analysis to support
the requirement for the EFOG-M system to be provided
following completion of the Advanced Concept Technology
Demonstration (ACTD), instead of before the ACTD, as proposed
by the House.
States eligible for assistance under Defense Experimental
Program to Stimulate Competitive Research (DEPSCoR) (sec.
273)
The Senate amendment contained a provision (sec. 220) that
would modify the graduation criteria for states participating
in the Department of Defense EPSCoR program.
The House bill contained no similar provision.
The House recedes with an amendment that would provide for
the use of a three year average to determine, on a state-by-
state basis, whether a state institution of higher learning
receives 60 percent of the average amounts for research and
engineering obligated by the Department of Defense.
Cruise missile defense initiative (sec. 274)
The Senate amendment contained a provision (sec. 236) that
would establish a cruise missile defense initiative. The
provision would require the Secretary of Defense to
strengthen and coordinate the cruise missile defense programs
of the Department of Defense, and provide Congress with a
report describing the Secretary's plans for implementing this
provision.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
University research initiative support program (sec. 275)
The House bill contained a provision (sec. 254) that would
amend Section 802 of the National Defense Authorization Act
for Fiscal Year 1994 (Public Law 103-160). The provision
would change the university research initiative support
program from a mandatory program to a voluntary program and
provide for improved review procedures.
The Senate amendment contained no similar provision.
The Senate recedes.
Revisions of manufacturing of science and technology program
(sec. 276)
The House bill contained a provision that would eliminate
the technology-based focus for the manufacturing of science
and technology program, and provide new emphasis on near-term
cost reduction applications. The provision would also require
a larger non-federal government cost share for 25 percent of
the program appropriation, and eliminate cost share for
academic institutions.
The Senate amendment contained a provision (sec. 222) that
would amend section 2525 of title 10, United States Code, in
two ways. The provision clarified the role of the Joint
Directors of Laboratories in establishing the Manufacturing
Science and Technology Program. The provision included a
requirement that manufacturing equipment producers be more
directly involved in projects funded under this program.
The conferees agree to an amendment that would combine the
House and Senate provisions.
The conferees support the transfer of the MANTECH program
from advanced development to a Research, Development, Test &
Evaluation (RDT&E) production support account to ensure
direct impact of manufacturing technology on reduction of
production and repair costs for todays systems. However, the
conferees direct that a balance be maintained between near-
term manufacturing solutions for weapons systems and the long
range manufacturing design needs, such as implementing
Integrated Products and Process Development (IPPD) in future
systems.
The conferees would include the House provision to set
aside 25 percent of the funding for the manufacturing
technology program for entering into contracts and
cooperative agreements, on a cost-share basis, in which the
ration of funding provided by non-federal and federal
participants is 2 to 1. The conferees have included a
provision that would allow the Under Secretary of Defense for
Acquisition and Technology to waive the requirement after
July 15 of each fiscal year. The conferees direct that
contracts and cooperative agreements awarded to meet this
requirement be on a project-by-project basis. The conferees
direct that the Department maximize the number of contracts
and cooperative agreements, to the extent practicable.
The conferees expect the Department of Defense and the
services to request an aggressive fiscal year 1997 MANTECH
budget that reflects program needs. As a goal, the Department
should consider funding this program at approximately one
percent of the services' RDT&E budgets. The conferees also
believe that the Secretary of Defense should place the
highest priority on addressing the management and budget
process issues that have adversely affected the MANTECH
program.
Five-year plan for consolidation of defense laboratories and
test and evaluation centers (sec. 277)
The House bill contained a provision (sec. 259) that would
require the Secretary of Defense to prepare a five year
strategic plan to consolidate and restructure the
Department's research and development laboratories and test
and evaluation centers.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment to include additional
study parameters and to adjust the limitation on funding
obligations; from 40 percent to 75 percent for the central
test and evaluation investment development program pending
submission of the report to Congress.
Limitation on T-38 avionics upgrade program (sec. 278)
The House bill contained a provision (sec. 261) that would
allow the Department of the Air Force to consider foreign
companies for the award of the contract for the T-38 aircraft
avionics upgrade program only if such companies are
headquartered in countries that allow equal access to United
States companies for such contracts.
The Senate amendment contained no similar provision.
The Senate recedes.
Global Positioning System (sec. 279)
The Senate amendment contained a provision (sec. 1081) that
would require the Secretary of Defense to suspend use of the
selective availability feature of the Global Positioning
System (GPS) by May 1, 1996, unless the Secretary develops a
plan for dealing with the challenges associated with GPS
jamming and denial.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Army support for the National Science Center for
Communications and Engineering (sec. 280)
The Senate amendment contained a provision (sec. 1085) that
would modify the authority of the Army to provide support to
the National Science Center outreach program.
The House bill contained no similar provision.
The House recedes.

legislative provisions not adopted

Maneuver variant unmanned aerial vehicle
The House bill contained a provision (sec. 212) that would
prohibit the obligation of funds appropriated or otherwise
made available pursuant to authorizations in fiscal year 1996
for the Maneuver Variant Unmanned Aerial Vehicle.
The Senate amendment contained no similar provision.
The House recedes.
National missile defense
The House bill contained a provision (sec. 233) that, in
part, would direct the Secretary of Defense to develop for
deployment at the earliest practical date a national missile
defense system consisting of: (1) up to 100 ground-based
interceptors at a single site or a greater number of
interceptors at a number of sites, as determined necessary by
the Secretary; (2) fixed, ground-based radars; (3) space
based sensors, including those sensor systems that are
capable of cuing ground-based interceptors and providing
initial targeting vectors; and (4) battle management,
command, control, and communications.
The Senate amendment contained a provision (sec. 235) that
would direct the Secretary of Defense to take the following
steps regarding national missile defense (NMD): (1) develop
for deployment an affordable and operationally effective NMD
system (consisting of ground-based interceptors capable of
being deployed at multiple sites, ground-based radars, space-
based sensors, and battle management, command, control, and
communications) to counter a limited, accidential, or
unauthorized ballistic missile attack, and which is capable
of attaining initial operational capability by the end of
2003; (2) develop an interim operational capability plan that
would give the United States the ability to field a limited
NMD system by the end of 1999; (3) prescribe and use
streamlined acquisition procedures; (4) employ additional
cost saving measures; and (5) report on his plan for NMD
deployment and an analysis of options for supplementing the
initial NMD architecture to improve cost and operational
effectiveness. The Senate amendment also contained a
provision (sec. 235(d)(2)) that would prohibit the use of
Minuteman boosters in any NMD architecture.
The conference agreement does not include a provision on
national missile defense.
Ballistic missile defense follow-on technology research and
development
The House bill contained a provision (sec. 234) that would
provide guidance on follow-

[[Page H620]]
on technology development for theater and national ballistic missile
defense programs.
The Senate amendment contained no similar provision.
The House recedes.
Policy regarding the ABT Treaty
The Senate amendment contained a provision (sec. 237) that
would clarify that the policies, programs, and requirements
of the ``Missile Defense Act of 1995'' (subtitle C of title
II of the Senate amendment) can be accomplished through
processes specified in the ABM Treaty, and that would express
the sense of Congress that the Senate should review the
continuing value and validity of the ABM Treaty.
The House bill contained a provision (sec. 242(c)(2)) that
would urge the President to pursue high-level discussions
with Russia to amend the ABM Treaty.
The conference agreement does not include either provision.
Ballistic missile defense funding
The House bill contained a provision (sec. 241) that would
authorize $3.070 billion in Defensewide research,
development, test, and evaluation (RDT&E) funds for ballistic
missile defense programs.
The Senate amendment contained no similar provision.
The House recedes. The conferees discuss funding for
ballistic missile defense programs elsewhere in this
Statement of Managers.
Allocation of funds for medical countermeasures against
biowarfare threats
The House bill contained a provision (sec. 251) that would
amend section 2370a of title 10, United States Code, to
permit the obligation or expenditure of up to 50 percent of
funds authorized for the medical component of the Department
of Defense Biological Defense Research program for product
development, or for research, development, test, or
evaluation of medical countermeasures related to mid-term or
far-term validated biowarfare threat agents.
The Senate amendment contained no similar provision.
The House recedes.
The conferees note with concern that the recent progress in
bio-technology could potentially lead to the development of
new biological warfare agents and capabilities among
potential adversaries of the United States. The conferees
direct that the Department report to the congressional
defense committees by March 1, 1996 on the national security
threats posed by such potential developments of new agents
through advances in bio-technology and genetic engineering.
The report should also include recommendations related to
reducing the impact of progress in these areas, examine the
utility of increased emphasis on research and development of
medical countermeasures related to mid-term or far-term
biowarfare threat agents; and identify other measures that
could reduce the threat of these technological advances and
reduce the threat of biological agent and weapons
proliferation.
Cross reference to congressional defense policy concerning
national technology and industrial base, reinvestment,
and conversion in operation of defense research and
development programs
The House bill contained a provision (sec. 262) that would
cross-reference sections 2358(a)(2)(B) and 2371(a) with
section 2501 of title 10, United States Code, to encourage
the use of dual-use technology programs in defense research
and technology programs.
The Senate amendment contained no similar provision.
The House recedes.
Fiber optic acoustic sensor system
The budget request included $21.3 million in PE 63504N for
the advanced submarine combat systems development program.
The House bill contained a provision (sec. 264) that would
authorize $28.2 million for the advanced submarine combat
systems development program in fiscal year 1996, including
$6.9 million for research and development for a fiber optic
acoustic sensor system and common optical towed array. The
provision also reduced funding for the advanced submarine
systems development program (PE 63561N) by $6.9 million.
The Senate amendment contained no similar provision.
The House recedes.
The conferees agree to the authorization of an additional
$6.9 million above the budget request in PE 63504N for
advanced development of fiber optic acoustic sensor systems,
including the development of common optical towed arrays.
Joint targeting support system testbed
The budget request included $141.4 million in PE 24229N for
the Tomahawk missile and the Tomahawk mission planning center
programs.
The House bill contained a provision (sec. 265) that would
reallocate project funding within PE 24229N. The provision
would increase funding for Tomahawk theater mission planning
by $10.0 million in order to establish a joint targeting
support system testbed and would reduce funding for Tomahawk
missile development by $10.0 million, as an offset.
The Senate amendment contained no similar provision.
The House recedes.
The conferees agree to an additional authorization of $4.0
million in PE 24229N to initiate development of a joint
targeting support system testbed (JTSST) for demonstration of
potential joint targeting operations. The conferees
understand that an initial study would investigate the
relative roles of the existing systems installed in the
Tomahawk mission planning center and other mission planning
systems that are being developed by the individual military
services. It is recognized that these systems are projected
to have embedded precision weapons planning capabilities.
The conferees expect that the results of the initial JTSST
study and follow-on demonstrations will contribute to the
definition of long-term objectives, guidelines, and schedule
milestones for convergence of the Navy/Marine Corps tactical
aircraft mission planning systems and the Air Force mission
support system, and should lead to the development of a joint
mission planning system architecture for the military
services.
The conferees direct the Secretary of Defense to report to
the congressional defense committees as soon as possible, but
no later than the submission of the fiscal year 1998 budget
request. This report shall describe the Secretary's plan for
implementing the recommendations that result from the study.
Battlefield Integration Center
The Senate amendment contained a provision (sec. 201(4)(C))
that would authorize the use of up to $25.0 million in
Defensewide research, development, test, and evaluation
(RDT&E) funds made available for Other Theater Missile
Defense activities for the Army's Battlefield Integration
Center (BIC).
The House bill contained no similar provision.
The Senate recedes.
The conferees agree to authorize an increase of $21.0
million in PE 63308A for the BIC.
Marine Corps shore fire support
The Senate amendment contained a provision (sec. 213) that
would not allow more than fifty percent of the funds
appropriated in fiscal year 1996 for the Tomahawk Baseline
Improvement Program to be obligated until the Secretary of
the Navy certifies that a program has been established and
fully funded. That program would lead to a live fire test of
an Army Extended Range Multiple Launch Rocket from an Army
launcher on a Navy ship before October 1, 1997.
The House bill contained no similar provision.
The Senate recedes. Further guidance relative to the
consideration of the Army Extended Range Multiple Launch
Rocket System in the Navy Surface Fire Support program is
contained elsewhere in the Statement of Managers.
Depressed altitude guided gun round (DAGGR)
The budget request contained no funds for the depressed
altitude guided gun round (DAGGR).
The Senate amendment contained a provision (sec. 225) that
would authorize $5.0 million for continued development of the
DAGGR system.
The House bill contained no similar provision.
The Senate recedes. DAGGR technology has indicated
potential capability which might be used to counter threats
such as 122-millimeter rockets and cruise missiles. The
conferees encourage the Secretary of the Army to include this
program in the fiscal year 1997 budget request, and, if
warranted, consider a reprogramming request to provide
funding for DAGGR in fiscal year 1996.
Army echelon above corps communication
The budget request included $5.9 million for Army echelon
above corps communications.
The House bill would authorize the budget request.
The Senate amendment included a provision (sec. 226) that
would provide an increase of $40.0 million to procure
additional communications equipment for the Army's echelons
above corps.
The Senate recedes.
The conferees agree to authorize the increase of $40.0
million for the procurement of additional communications
equipment for the Army's echelons above corps.
Sense of the Senate on the Director of Operational Test and
Evaluation
The Senate amendment contained a provision (sec. 242) that
would express a sense of the Senate that would discourage any
attempt to diminish or eliminate the Office of the Director
of Operational Test and Evaluation or its functions.
The House bill contained no similar provision.
The Senate recedes.
Ballistic missile defense technology center
The Senate amendment contained a provision (sec. 243) that
would establish a ballistic missile defense technology center
within the Space and Strategic Defense Command of the Army.
The House bill contained no similar provision.
The Senate recedes.

Title III--Operation and Maintenance

Overview
The budget request for fiscal year 1996 contained an
authorization of $91,634.4 million for Operation and
Maintenance in the Department of Defense and $1,852.9 for
Working Capital Fund Accounts in fiscal year 1996. The House
bill would authorize $94,420.2 million for Operation and
Maintenance and $2,452.9 for Working Capital Fund Accounts.
The Senate amendment would authorize $91,408.8 million for
Operation and Maintenance and $1,962.9 for Working Capital
Fund

[[Page H621]]
Accounts. The conferees recommended an authorization of $92,616.4
million for Operation and Maintenance and $1,902.9 for
Working Capital Fund Accounts for fiscal year 1996. Unless
noted explicitly in the statement of managers, all changes
are made without prejudice.

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PACER COIN
The budget request included $5.5 million in procurement and
$19.5 million in operations and maintenance funding for the
PACER COIN aircraft.
The House bill would deny all funding, effectively
terminating this program.
The Senate amendment would authorize the Department's
request.
The House recedes.
The conferees agree to authorize the budget request.
Nevertheless, the conferees have serious reservations about
whether the PACER COIN program, within its current mission
tasking, provides such unique intelligence collection as to
justify continued spending of limited resources on this
mission. However, the conferees agree that:
(1) terminating the PACER COIN program immediately this
fiscal year would place unacceptable stresses on the
personnel system;
(2) the Department has already obligated fiscal year 1996
funds for this mission; and
(3) the Air Force would need funds to terminate the program
and provide proper aircraft/equipment disposition.
The conferees direct the Department to determine whether or
not the PACER COIN aircraft could be used in a dual use role.
The conferees believe that the analysis should answer several
questions, including at least the following:
(1) Could the aircraft be used, without certain PACER COIN
systems, in an air drop role?
(2) Could the aircraft be configured to simultaneously
perform the PACER COIN mission and carry the SENIOR SCOUT
tactical intelligence system?
(3) What alternatives are there for filling the
requirements of the regional Commander in Chief if the PACER
COIN program is terminated?
(4) What would be the effects of failing to meet the
requirements of the regional Commander in Chief for the PACER
COIN capability?
The conferees direct the Secretary of Defense to report to
the congressional defense and intelligence committees on the
results of this analysis by May 1, 1995.
If the Department determines that dual use of the aircraft
is not practical, the conferees direct the Department to
determine proper disposition of the PACER COIN mission
aircraft (e.g. permanent aircraft storage or deconfiguration
from the current mission configuration).
If the Department determines that dual use of the aircraft
is practical, and that the operational unit can fulfill
multiple missions, the conferees direct the department to:
(1) maintain the PACER COIN aircraft in a reconfigurable
state for use in those multiple roles and retain the PACER
COIN mission equipment for future contingency or national
disaster mission uses; and
(2) begin training for those appropriate new missions,
including air drop, as soon as possible to ensure a smooth
transition from the PACER COIN-unique mission.

items of special interest

DBOF transfers
The conferees reduced the civilian personnel funding
request by $226.0 million. Of this amount, the conferees
expect that $96.0 million will be realized from projected
savings from Defense Business Operations Fund (DBOF)
activities. The conferees direct that $96.0 million be
transferred from the DBOF to the accounts from which the
reductions are taken.
The conferees also reduced the operation and maintenance
(O&M) accounts of the services by $180.0 million, in
anticipation of savings from efficiencies in the management
of Department of Defense inventories. The conferees direct
that $180.0 million be transferred from the DBOF to the
following O&M accounts: Army, $60.0 million; Navy, $60.0
million; Air Force, $60.0 million.
Restriction on devolving the Defense Environmental
Restoration Account to the military services
In a memorandum dated May 3, 1995, the Deputy Secretary of
Defense announced a proposal to devolve the Defense
Environmental Restoration Account (DERA), a single transfer
account administered by the Department of Defense, to four
separate transfer accounts administered by the individual
military services. The execution of the Deputy Secretary of
Defense's proposal would require modification of the DERA
statutory framework.
The conferees are concerned the devolution of DERA would
impede congressional oversight of the management and use of
funds authorized for and appropriated to the account. In
relation to devolvement, the conferees desire a thorough
description of the means by which the Department of Defense
would ensure consistent funding and accountability for
environmental restoration activities. Moreover, the
Department of Defense needs to identify the monetary savings
and administrative efficiencies associated with DERA
devolvement. The Department of Defense also must specify
funding and staffing reductions for the office of the Deputy
Under Secretary of Defense for Environmental Security that
would result from DERA devolution.
The conferees agree that, in the event that the Department
of Defense intends to pursue legislation to authorize
devolvement for fiscal year 1997, the Secretary of Defense
must submit a report to Congress, no later than March 31,
1996. The report should provide full justification for DERA
devolvement and address the matters outlined above. In the
absence of the requested information this year, the conferees
decline to authorize a change to the existing statutory
scheme for DERA at this time.
National defense sealift fund

summary

The budget request included $974.2 million in the national
defense sealift fund (NDSF) for the procurement of two new
strategic sealift ships, operations and maintenance of the
national defense reserve fleet (NDRF), acquisition and
modification of additional ships for the ready reserve force
(RRF) of the NDRF, and research and development of mid-term
sealift ship technologies.
The House bill would authorize $974.2 million for the NDSF,
the budget request.
The Senate amendment would authorize $1.08 billion for the
NDSF, an increase of $110.0 million. This increase would be
for the purpose of purchasing and converting one additional
ship for enhancement of the Marine Corps' maritime
prepositioning ship (MPS) program.
The conferees agree to authorize $1.02 billion for the
NDSF, an increase of $50.0 million. Items of special interest
are discussed in the following sections.

national defense features

The House bill did not authorize the $70.0 million included
in the NDSF budget request for the procurement and
modification of additional roll-on/roll-off (RO/RO) ships for
the RRF. Instead, it would authorize $70.0 million for the
procurement and installation of national defense features
(NDF) on commercial vehicle carriers built in and documented
under the laws of the United States, as required by section
2218, title 10, United States Code.
The Senate amendment dealt with the $70.0 million included
in the NDSF budget request for the procurement and
modification of RRF RO/RO vessels as follows:
(1) $20.0 million to modify RO/RO vessels purchased in
fiscal year 1995; and
(2) $50.0 million to procure and install defense features
on commercial RO/RO vessels that would be built in United
States shipyards.
The conferees agree that, of the amount authorized for the
NDSF, $50.0 million shall be for the procurement and
installation of NDF and $20.0 million shall be for
modification of the RRF RO/RO vessels purchased in fiscal
year 1995. The conferees also restrict the obligation of the
$20.0 million authorized for the modification of RRF RO/RO
vessels until 30 days after the Secretary of Defense has
notified the congressional defense committees that a NDF
program has been formally established and that at least $50.0
million has been made available to fund it.

maritime prepositioning ship enhancement

The budget request of $974.2 million for the national
defense sealift fund (NDSF) did not include funding for any
enhancements to the Marine Corps' maritime prepositioning
force.
In order to continue a program initiated last year, the
Senate amendment would authorize $110.0 million above the
NDSF budget request to purchase and convert an additional MPS
ship.
The House bill would authorize the budget request. It did
not address the issue of MPS enhancement.
The conferees would not authorize funds for MPS enhancement
in the conference agreement. However, the conferees reaffirm
their strong support for the MPS enhancement program. This
program will enable the Marine Corps to add additional tanks,
an expeditionary airfield, additional Navy construction
battalion equipment, a fleet hospital, and other supplies to
each MPS squadron, to better sustain the Marine Corps as an
expeditionary force.
The conferees believe that there are substantial benefits
inherent in an MPS enhancement program. Consequently, the
conferees are troubled by the department's failure to include
funding for a second MPS enhancement ship in the fiscal year
1996 budget request, and by the lack of progress in acquiring
and converting the MPS enhancement ship authorized and
appropriated in fiscal year 1995.
The conferees note, however, that the Navy appears to have
made some recent progress in developing a well-defined
program. In view of the above, the conferees strongly
encourage the Secretary of Defense to accelerate the pace at
which additional sealift capability is acquired (to include
funding for a second MPS enhancement ship in fiscal year
1997). However, the conferees expect the Secretary to adhere
to the prepositioning, surge, and RRF priorities established
by the Mobility Requirements Study (MRS) and validated by the
MRS Bottom Up Review Update.
The conferees also expect the Navy to aggressively pursue
all possible procurement options, including multi-ship and
commercial procurement, to achieve the cost savings
associated with the acquisition, conversion, and delivery of
MPS enhancement vessels. The Secretary of Defense is directed
to report on the progress made in meeting this goal when he
submits the fiscal year 1997 budget request.

advanced submarine technology research

The conferees agree that, of the amount appropriated for
fiscal year 1996 for the NDSF, $50.0 million shall be
available only for the Director of the Advanced Research
Projects Agency for advanced submarine technology activit

[[Page H647]]
ies.
National Security Agency oversight
The budget request included $5.0 million in operations and
maintenance (O&M) funds and 82 new personnel billets for
National Security Agency (NSA) oversight of tactical signals
intelligence (SIGINT) system development.
The House bill would not authorize the $5.0 million O&M
request.
The Senate amendment would authorize the budget request.
The conferees question the necessity for 82 persons to
perform a function that could be significantly facilitated by
automation and improved electronic connectivity, but
recognize both the importance of the program and the
commitment of the Deputy Secretary of Defense and the
Director of NSA to this effort. Accordingly, the conferees
agree to authorize the budget request, but direct that the 82
billets be transferred from the Consolidated Cryptological
Program (CCP) to the Defense Cryptological Program (DCP),
resulting in no net gain in United States SIGINT System
activities. The conferees understand that this billet
transfer may temporarily force NSA to exceed its personnel
ceilings. The conferees agree to authorize NSA to remain
above its personnel ceiling through fiscal year 1997 for this
purpose, but expect that, as of September 30, 1997, NSA will
meet its congressionally mandated 17.5 percent reduction
target. The conferees also urge NSA to review the
requirements for each of these billets for validity and
consistency.
Department of Defense next generation weather radar-doppler
The Department of the Air Force operates 21 next generation
weather radar-doppler (NEXRAD) weather radar equipment in
CONUS that primarily function to protect military locations.
Additionally, Department of Defense (DOD) radar provides
supplementary data to the National Weather Service (NWS) and
its national radar network.
DOD NEXRADs are maintained at operational standards that
meet military requirements. Due to increasing NWS reliance on
the DOD NEXRADS for primary and back-up coverage, efforts
have been made to increase the reliability of the DOD radar
to meet NWS operating standards.
The conferees direct the Secretary of the Air Force to
report by March 31, 1996, on the measures needed to conform
the operation of the NEXRADS to the NWS operating standards.
The report should address any resource requirements,
including personnel and funds.
Reengineering household goods moves
The conferees commend the Department of Defense for
initiating efforts to incorporate efficient business
practices in its household goods moving operations. The
objective of these efforts should be to procure commercial
services at the lowest possible cost while ensuring service
members and their families receive the best possible service.
Current procurement practices are cumbersome and
inefficient, resulting in clearly unacceptable costs for both
DOD and the moving industry. It is not apparent that the time
and expense associated with processing redundant paperwork
and administering a government-unique system are necessary to
ensure a level of service for DOD customers that meets the
industry standard.
Further, current practices are structured in such a way
that service members and their families are subjected to
unnecessary administrative burdens. Claims procedures and the
evaluation system are outdated and seemingly disconnected
from the concept of quality control, and can be frustrating
to customers. Because military relocations account for a
substantial share of moving industry work, DOD should be able
to implement simple, cost-effective procedures which
simultaneously assure first class service for customers.
However, current DOD practices do not reflect best industry
practices, such that the DOD operation should be
reengineered, rather than simply reorganized. The conferees
direct the Secretary of Defense to initiate a pilot program
to reengineer household goods moves. The Secretary should
direct the incorporation of commercial practices, and report
on the program not later than February 15, 1996, prior to
implementation of any element of the pilot program. The
report should be accompanied by comments from the industry.
The Secretary may not implement any element of the pilot
program that could adversely affect small businesses,
including extension or application of Federal Acquisition
Regulations into this matter, until 90 days after the
submission of the report.

Legislative Provisions

legislative provisions adopted

Subtitle A--Authorization of Appropriations

Armed Forces Retirement Home (sec. 303)
The House bill contained a provision (sec. 303) that would
authorize an appropriation from the Armed Forces Retirement
Home (AFRH) Trust Fund for operation of the AFRH in fiscal
year 1996.
The Senate amendment contained a provision (sec. 303) that
would authorize an identical appropriation from the trust
fund, and authorize a new appropriation of $45.0 million to
the trust fund. The recommendation for this new appropriation
directly to the trust fund would address the problem of its
potential insolvency due to unanticipated decreases in the
long-established funding stream approved by Congress for
operation of the AFRH.
The Senate recedes.
Congress established a funding program whereby the AFRH
would be self-sustaining, and not dependent on public funds.
The U.S. Soldiers' and Airmen's Home in Washington, DC, has
operated successfully according to this program since its
inception in 1851. The U.S. Naval Home (established in 1834
and located since 1976 in Gulfport, MS) had been funded
differently, relying on public funds from 1935 until 1991,
when both homes were incorporated into the AFRH (Armed Forces
Retirement Home Act of 1991; P.L. 101-510). The Act brought
both homes under the unified management of the Armed Forces
Retirement Home Board and merged the trust funds of the two
homes.
Subsequent to incorporation, the annual operating costs for
both homes of the AFRH have been authorized by Congress, to
be drawn (appropriated) from a single trust fund. Since the
funding program provided that interest from the trust fund,
fines and forfeitures, and a monthly assessment from the pay
of active duty enlisted service members and warrant officers
would maintain the solvency of the trust fund, no
appropriation outside the fund was envisioned to be
necessary.
However, Congress did not anticipate the magnitude of
reductions in the armed forces prompted by the end of the
Cold War. These reductions caused a decrease in the funding
stream as the income derived from assessments decreased. The
high quality of the force resulted in fewer disciplinary
problems, which in turn resulted in less income from fines
and forfeitures. This is significant because fines and
forfeitures account for more than half the income.
The trust fund now has a negative cash flow because more
money is required for operation of the AFRH than is available
from income. The corpus of the trust fund is being depleted,
and the conferees recognize the need to implement changes to
prevent insolvency. The conferees believe it would be easier,
preferable, and more advantageous to implement corrective
measures in the next few years, rather than wait for the
problem to become much more serious.
The conferees note that Congress addressed the funding
problem in the National Defense Authorization Act for Fiscal
Year 1995 by providing authority for an increase in the
monthly assessment. The 1995 provision also established a
schedule of increases for resident fees and required a
comprehensive study by the Board on funding alternatives for
the AFRH. However, the study will not be completed until
December 1995, and the Department of Defense has declined to
increase the assessment prior to completion of the study. The
conferees note that an increase in the assessment, from 50
cents to one dollar per month, may not of itself resolve the
cash flow problem. A combination of efficiencies and funding
program changes may be appropriate.
The conferees strongly support the fine work of the Board,
and agree to wait for the outcome of the study in order not
to restrict the consideration of efficiencies. The conferees
encourage the Secretary of Defense and the Board to continue
their efforts to examine alternative methods of meeting the
long-term financial requirements of the AFRH, while
maintaining high quality service for the residents.
Transfer from National Defense Stockpile Transaction Fund
(sec. 304)
The Senate amendment contained a provision (sec. 304) that
would authorize the transfer of $150.0 million from the
National Defense Stockpile Transition fund to the operation
and maintenance accounts of the services.
The House bill contained no similar provision.
The House recedes.
Civil Air Patrol (sec. 305)
The Senate amendment contained a provision (sec. 305) that
would reduce the level of Department of Defense support to
the Civil Air Patrol (CAP) by $2.9 million from the budget
request of $27.5 million.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
This reduction would realize savings by accelerating a CAP
reorganization in which many of the functions performed by
Air Force personnel in the past would then be performed by
employees of the CAP. This reorganization, which was
originally planned to be completed in fiscal year 1997, will
now be completed during fiscal year 1996.

Subtitle B--Depot-Level Activities

Policy regarding performance of depot-level maintenance and
repair for the Department of Defense (sec. 311)
The House bill contained a provision (sec. 395) that would
amend current law to establish the importance to national
security of maintaining a core depot-level maintenance and
repair capability within Department of Defense (DOD)
facilities. The provision would address core work
determinations, interservicing, competition, and an exclusion
from workload limitations for large individual maintenance
projects. It would also repeal two limitations on the
performance of depot-level work (10 U.S.C. 2466 and 2469),
effective December 31, 1996.
The Senate amendment contained a provision (sec. 311) that
would require the Secretary of Defense to develop a
comprehensive

[[Page H648]]
policy on the performance of depot-level maintenance and repair, and
submit a report on the policy to the congressional defense
committees by March 31, 1996. The provision would condition
the repeal of the two current limitations on congressional
approval of the recommended policy.
The House recedes with an amendment that would clarify both
the content of the policy and considerations to be made by
the Secretary. The amendment would also affirm that it is the
sense of Congress that DOD must articulate core workload
requirements as a necessary first step toward developing a
policy.
The conferees believe that it would be extremely difficult
for Congress to approve a policy that does not provide for
the performance of core depot-level workload in public
facilities.
Although the conferees do not wish to prescribe more than a
broad outline of the areas to be addressed by the Secretary,
the conferees believe it is useful to direct the Secretary to
consider numerous matters in developing the policy, and to
report on items of interest.
The conferees believe it is both preferable and entirely
possible for DOD to develop an acceptable, comprehensive
policy that will serve the best interests of national
security. The conferees also believe that such a policy could
achieve efficiencies, and result in resolving the constant
debate over how to apportion work between the public and
private sectors.
With respect to the exclusion for large individual
maintenance projects contained in the House provision, the
conferees note that certain projects may account for a large
share of a military department's maintenance and repair
budget. This is the case with respect to complex overhauls of
naval vessels, particularly nuclear-powered aircraft
carriers, whose overhaul and refueling can absorb a large
percentage of the Navy's maintenance and repair budget in a
given fiscal year. Amounts expended for such large projects
could, if counted against the limitation prescribed under
current law (10 U.S.C. 2466), affect the application of the
formula for the apportionment of work between the public and
private sectors.
The conferees note that the impact of large maintenance
projects could have unintended consequences on the
application of section 2466. Until the workload limitations
are repealed, the conferees direct the Secretary of the Navy
to monitor the assignment of large individual maintenance
projects closely and continue to administer depot maintenance
programs to avoid unintended imbalances in workload
distribution insofar as practicable.
Management of depot employees (sec. 312)
The House bill contained a provision (sec. 332) that would
prohibit the management of depot employees by endstrength
constraints.
The Senate amendment contained no similar provision.
The Senate recedes.
Extension of authority for aviation depots and naval
shipyards to engage in defense-related production and
services (sec. 313)
The Senate amendment contained a provision (sec. 312) that
would extend through fiscal year 1996 the authority provided
by section 1425 of the National Defense Authorization Act of
1991, as amended, for naval shipyards and aviation depots of
all the services to bid on defense-related production and
services.
The House bill contained no similar provision.
The House recedes.
Modification of notification requirement regarding use of
core logistics functions waiver (sec. 314)
The House bill contained a provision (sec. 374) that would
modify section 2464(b) to title 10, United States Code,
concerning notification to Congress regarding the effective
date of the subject waiver.
The Senate amendment contained no similar provision.
The Senate recedes.

Subtitle C--Environmental Provisions

Revision of requirements for agreements for services under
the defense environmental restoration program (sec. 321)
The Senate amendment contained a provision (sec. 321) that
would amend section 2701(d) of title 10, United States Code,
to ensure Department of Defense accountability for
reimbursements provided to states or territories. The Senate
amendment would limit the basis for state reimbursement.
First, states or territories participating in agreements
under the defense environmental restoration program would
only receive reimbursement for providing technical and
scientific services. Second, the provision would require the
submission of a reprogramming request for amounts in excess
of $5.0 million.
The House bill contained no similar provision.
The House recedes with an amendment that would increase the
funding authorization to $10.0 million.
Addition of amounts creditable to the defense environmental
remediation account (sec. 322)
The House bill contained a provision (sec. 322) that would
provide for transfer account credit of amounts recovered
under section 107 of the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 (CERCLA) (42
U.S.C. 9601, et seq.) or from other reimbursements to the
Department of Defense for environmental restoration
activities.
The Senate amendment contained no similar provision.
The Senate recedes with a technical amendment.
Sense of Congress on use of defense environmental restoration
account (sec. 323)
The House bill contained a provision (sec. 326) that would
express the sense of Congress that by the end of fiscal year
1997 no more than 20 percent of the annual funding for the
Defense Environmental Restoration Account should be spent for
administration, support, studies, and investigations.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would establish a
goal that by the end of fiscal year 1997 no more than 20
percent of the annual funding for the Defense Environmental
Restoration Account should be spent for administration,
support, studies, and investigations. The amendment would
also require the Department of Defense to submit a report to
Congress by April 1, 1996. The report would specify issues
related to attaining the 20 percent goal.
Revision of authorities relating to restoration advisory
boards (sec. 324)
The Senate amendment contained a provision (sec. 323) that
would amend section 2705 of title 10, United States Code,
which authorizes establishment of restoration advisory boards
(RABs) to assist the Department of Defense with environmental
restoration activities at military installations. Section
2705 also provides a funding framework for local community
members of RABs and existing technical review committees.
About 200 Restoration Advisory Boards have been established
at operational and closing installations and formerly used
defense sites. Under current law, the RAB funding sources for
local community member participation and for technical
assistance are the Defense Environmental Restoration Account
(DERA) and the Base Realignment and Closure Account (BRAC).
Section 2705(e)(3)(B) provides a $7.5 million limit on the
use of DERA and BRAC funds to pay for RAB technical
assistance and community participation in fiscal year 1995.
Under section 2705(d)(3), routine administrative expenses for
RABs may be paid out of funds available for the operation and
maintenance of an installation, without any limit on the
amount of funds that may be expended for that purpose.
The Senate amendment would amend section 2705 to limit
funding sources to BRAC and DERA, not to exceed $4.0 million
in fiscal year 1996. Funds would be made available only for
routine administrative expenses and technical assistance. The
installation commander could obtain technical assistance for
a RAB to interpret scientific and engineering issues related
to the environmental restoration activities at the
installation where the RAB is functioning.
The House bill contained no similar provision.
The House recedes with an amendment that would increase the
funding authorization to $6.0 million. As part of the
amendment, the conferees have included language that would
make funds unavailable after September 15, 1996, unless the
Secretary of Defense publishes proposed final or interim
final regulations. Based on section 2705(d)(2) of title 10,
United States Code, the conferees anticipate that the
Department would already have made some progress in the
promulgation of regulations.
Funding for private sector sources of technical assistance
would be contingent on the following: (1) a demonstration
that the existing technical resources of the Federal, state,
and local agencies responsible for overseeing environmental
restoration at an installation could not serve the objective
for which technical assistance is requested; or (2) outside
assistance is likely to contribute to the efficiency,
effectiveness, or timeliness of environmental restoration at
an installation; and (3) outside assistance is likely to
contribute to community acceptance of environmental
restoration activities at an installation.
The conferees intend that the funds authorized pursuant to
this section would be the primary funding source for
technical assistance and administrative expenses associated
with RABs. The conferees strongly encourage the Secretary of
Defense to ensure that funds authorized for RABs are expended
in a manner that is consistent with obtaining technical
assistance and with payment of administrative expenses, and
is dispensed in accordance with the funding mechanism
established in this section. The RAB program should not serve
as a drain on the Superfund.
Discharge from vessels of the Armed Forces (sec. 325)
The Senate amendment contained a provision (sec. 322) that
would address incidental discharges from vessels of the armed
forces through the development of uniform national discharge
standards. The Federal Water pollution Control Act, 33 U.S.C.
1251 et seq., and implementing regulations currently exempt
incidental vessel discharges from permitting requirements.
Incidental discharges remain subject to varying state
regulation. The lack of uniformity has presented operational
problems for the Navy.
The Senate amendment is modeled after section 312 of the
Federal Water Pollution Control Act, 33 U.S.C. 1322, which
establishes uniform national discharge standards for sewage
discharges from all vessels. The standards provision would
extend this model to regulate non-sewage incidental
discharges from vessels of the armed forces.

[[Page H649]]

The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Operation of commissary system (sec. 331)
The House bill contained a provision (sec. 341) that would
revise the operation of the commissary store system, allow
contracts with other agencies, and revise payments to vendor
agents.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would eliminate
the revision of payments to vendor agents.
The conferees are concerned about the high cost of the
Defense Finance and Accounting Service procedures to process
the 1.5 million annual commissary invoices. The conferees
believe that innovative practices need to be pursued to
reduce this burden. The administrative costs consume funding
that could otherwise be used to improve patron services or
reduce costs.
The conferees direct the Secretary of Defense to conduct a
review of innovative practices to reduce this cost. Included
in this review should be an examination of the relationship
between the current distribution and invoicing practices. The
Secretary of Defense should report to the Senate Committee on
Armed Services and the House Committee on National Security
by February 15, 1996 on the recommended actions, if any, to
reduce these costs and how any savings will be used.
Additionally, the conferees note that the Defense
Commissary Information System and the Point-of-Sale
Modernization programs are essentially off-the-shelf
commercial grocery systems designed to improve patron service
and increase efficiency of commissary operations. As such,
the conferees believe the Secretary of Defense should get
these systems on line and operating with the minimum of
review required to ensure interface with other government
data systems and compliance with legislation and regulations
essential to protect the interests of the government.
Limited release of commissary store sales information to
manufacturers, distributors, and other vendors doing
business with Defense Commissary Agency (sec. 332)
The House bill contained a provision (sec. 343) that would
amend the procedures for the release of commissary stores
sales information.
The Senate amendment contained no similar provision.
The Senate recedes.
Economical distribution of distilled spirits by
nonappropriated fund instrumentalities (sec. 333)
The House bill contained a provision (sec. 344) that would
amend the procedures for the determination of the most
economical distribution of distilled spirits.
The Senate amendment contained no similar provision.
The Senate recedes with a technical amendment.
Transportation by commissaries and exchanges to overseas
locations (sec. 334)
The House bill contained a provision (sec. 345) that would
allow officials responsible for the operation of commissaries
and military exchanges the authority to negotiate directly
with private carriers for the most cost-effective
transportation of supplies by sea, without relying on the
Military Sealift Command or the Military Traffic Management
Command.
The Senate amendment contained no similar provision.
The Senate recedes.
Demonstration project for uniform funding of morale, welfare,
and recreation activities at certain military
installations (sec. 335)
The House bill contained a provision (sec. 346) that would
require the Secretary of Defense to conduct a demonstration
program at six military installations under which funds
appropriated for the support of morale, welfare, and
recreation programs at the installations are combined with
nonappropriated funds available for these programs and
treated as nonappropriated funds.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment which would extend the
test to two years.
Operation of combined exchange and commissary stores (sec.
336)
The House bill contained a provision (sec. 347) that would
permit the continued operation of the base exchange mart at
Fort Worth Naval Air Station, Texas, and would allow for the
expansion of the Base Exchange Mart Program.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.
The conferees approve this expansion with the understanding
that they do not intend that exchange marts replace viable
commissaries. When a commissary is identified for closure,
the exchange system will be permitted to conduct a market
survey to determine the viability of an exchange mart in the
closing commissary facility. The conferees do not expect that
an exchange mart would be in direct competition with a
commissary operating in close proximity to a proposed
exchange mart.
The conferees expect that exchange marts will operate in a
manner in which nonappropriated funds are not required to
sustain their operation. The conferees expect that every
effort will be made to operate the exchange marts in a manner
which requires only a minimal amount of appropriated fund
support.
Deferred payment programs of military exchanges (sec. 337)
The House bill contained a provision (sec. 348) that would
require the Secretary of Defense to establish a uniform
exchange credit program that could use commercial banking
institutions to fund and operate the deferred payment
programs of the Army and Air Force Exchange Service and the
Navy Exchange Service.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would clarify the
provision by ensuring that any proposal be competitively
awarded and that prior to entering into any commercial
program the Secretary determine that it is in the best
interests of the exchange systems.
Availability of funds to offset expenses incurred by Army and
Air Force Exchange Service on account of troop reductions
in Europe (sec. 338)
The House bill contained a provision (sec. 349) that would
require that the Secretary of Defense transfer not more than
$70 million to the Army and Air Force Exchange Service to
offset expenses incurred by the Army and Air Force Exchange
Service on account of reductions in the number of military
personnel in Europe.
The Senate amendment contained no similar provision.
The Senate recedes with a technical amendment.
In order to avoid disruption of operations associated with
currency fluctuations and, in recognition of the unique
direct appropriation nature of commissaries as an entity of
the Defense Business Operations Fund, the conferees direct
that the military exchanges, other nonappropriated fund
instrumentalities, and commissaries be permitted to be
included in the Department of Defense foreign currency
fluctuation fund.
Associated with the drawdown in Europe was an initiative to
transfer operations of the Stars and Stripes Bookstores to
the military exchanges. This transfer has a residual impact
upon certain employees. The conferees direct that the Army
and Air Force Exchange Service accept responsibility for
resolving the issue of employment, severance, and back pay
for the 15 local national employees formerly employed by the
Stars and Stripes. The conferees expect that the Army and Air
Force Exchange Service can, in conjunction with the Army and
Air Force headquarters in Europe, resolve the current job
action concerning these 15 local national employees using
funds provided in this section.
Study regarding improving efficiencies in operation of
military exchanges and other morale, welfare, and
recreation activities and commissary stores (sec. 339)
The House bill contained a provision (sec. 350) that would
require the Secretary of Defense to conduct a study and
submit a report to Congress regarding the manner in which
greater efficiencies can be achieved in the operation of
military exchanges, commissary stores, and other morale,
welfare, and recreation activities.
The Senate amendment contained no similar provision.
The Senate recedes.
The conferees agree with the findings and scope of the
study called for in the House report (H. Rept 104-131). The
conferees believe that the Department of Defense should seek
opportunities to reduce labor costs in resale activities and
to reduce excessive overhead. Additionally, the conferees
agree that significant economies and revenue potential can be
realized in the area of management and oversight of overseas
slot machine operations. The conferees direct the Secretary
of Defense consider and, if appropriate, submit a plan to
have one service serve as the executive agent for the
consolidated management and operation of this function.
Repeal of requirement to convert ships' stores to
nonappropriated fund instrumentalities (sec. 340)
The House bill contained a provision (sec. 351) that would
extend, to December 31, 1996, the deadline for the conversion
of all Navy ships' stores to operate as nonappropriated fund
activities.
The Senate amendment contained a provision (sec. 373) that
would repeal section 371 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 103-160)
requiring the Navy to convert ships' stores operations to a
Navy Exchange System agency.
The House recedes with an amendment that would require the
Inspector General of the Department of Defense to complete a
review of the Navy Audit Agency report regarding the
conversion of the Ships Stores pursuant to section 374 of the
National Defense Authorization Act for Fiscal Year 1995
(Public Law 103-337).
Disposition of excess morale, welfare, and recreation (MWR)
funds (sec. 341)
The Senate amendment contained a provision (sec. 371) that
would amend section 373 of the National Defense Authorization
Act for Fiscal Year 1995 to permit the Marine Corps to retain
the MWR funds transferred from Marine Corps installations.
The House bill contained no similar provision.

[[Page H650]]

The House recedes.
Clarification of entitlement to use of morale, welfare, and
recreation facilities by members of Reserve components
and dependents (sec. 342)
The Senate amendment contained a provision (sec. 633) that
would amend section 1065 of title 10, United States Code, to
give members of the retired reserve who would be eligible for
retired pay but for the fact that they are under 60 years of
age the same priority of use of morale, welfare, and
recreation facilities of the military services as members who
retired after active duty careers.
The House bill contained no similar provision.
The House recedes.

Subtitle E--Performance of Functions by Private-Sector Sources

Competitive procurement of printing and duplication services
(sec. 351)
The House bill contained a provision (sec. 359) that would
direct the Defense Printing Service to procure at least 70
percent of printing and duplication work competitively.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would exempt
classified printing and duplication work from this
calculation.
Direct vendor delivery system for consumable inventory items
of Department of Defense (sec. 352)
The House bill contained a provision (sec. 360) that would
require the Department of Defense (DOD) to arrange for
delivery of consumable inventory items directly from vendors
to military installations in the United States. Complete
implementation of this system would be required by September
30, 1997.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would require DOD
to use direct vendor delivery of consumable inventory items
whenever practicable.
Payroll, finance, and accounting functions of the Department
of Defense (sec. 353)
The House bill contained a provision (sec. 362) that would
require the Secretary of Defense to submit a plan to Congress
for the privatization of the payroll functions for civilian
employees of the Department of Defense and to implement the
plan not later than October 1, 1996.
The House bill contained a provision (sec. 368) that would
require the Secretary of Defense to conduct a pilot program
to test and evaluate the cost savings and efficiencies of
private operation of accounting and payroll functions of
nonappropriated fund instrumentalities of the Department of
Defense.
The Senate amendment contained a provision (sec. 352) that
would require the department of Defense to conduct a review
of the need for further expansion of Defense Finance and
Accounting Service (DFAS) operating locations, and to report
to the appropriate committees of the Congress prior to
establishing any new DFAS operating locations.
The House recedes with an amendment that would combine and
clarify the three provisions.
Demonstration program to identify overpayments made to
vendors (sec. 354)
The House bill contained a provision (sec. 363) that would
require the Secretary of Defense to conduct a demonstration
program at the Defense Personnel Support Center,
Philadelphia, Pennsylvania, to evaluate the feasibility of
using private contractors to audit accounting and procurement
records of the Department of Defense.
The Senate amendment contained no similar provision.
The Senate recedes.
Pilot program on private operation of defense dependents'
schools (sec. 355)
The House bill contained a provision (sec. 364) that would
allow the Secretary of Defense to conduct a pilot program to
assess the feasibility of using private contractors to
operate overseas dependents' schools and to report the
results of the pilot program to Congress.
The Senate amendment contained no similar provision.
The Senate recedes.
Program for improved travel process for the Department of
Defense (sec. 356)
The House bill contained a provision (sec. 365) that would
require the Secretary of Defense to conduct a pilot program
including two prototype tests of commercial travel
applications to improve management of the Department of
Defense Travel System.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would direct the
Secretary to conduct a two-year test at a minimum of three
sites and a maximum of six sites, and to report to the Senate
Committee on Armed Services and the House Committee on
National Security at the conclusion of the first year.
The conferees do not intend this provision to be viewed as
authority for the Secretary of Defense to circumvent the
requirement for civilians to use adequate government quarters
where they are available.
Increased reliance on private-sector sources for commercial
products and services (sec. 357)
The House bill contained a provision (sec. 367) that would
require the Secretary of Defense to endeavor to obtain
products and services from the private sector. The provision
would require the Secretary of Defense to describe functions
that can be performed by the private sector and specify
impediments to outsourcing.
The Senate amendment contained a provision (sec. 386) that
would require the Secretary to report on the use of private
sector contractors to perform functions not essential to the
warfighting mission of the Department of Defense.
The Senate recedes with an amendment.
The conferees agree that DOD should make a maximum effort
to rely upon the private sector for commercial functions
whenever the same level of service can be obtained at a
reduced cost to the government, and the national security
does not require the activity to be retained in-house. The
conferees note with approval the many steps the Department
has already taken in this direction and encourage the
Department to continue in its efforts. The conferees urge the
Department to maintain close coordination with the Committee
on Armed Services of the Senate and the Committee on National
Security of the House regarding its efforts to downsize the
federal government while placing greater reliance upon the
private sector.

Subtitle F--Miscellaneous Reviews, Studies, and Reports

Quarterly readiness reports (sec. 361)
The House bill contained a provision (sec. 371) that would
require the Secretary of Defense to report quarterly to the
Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives on the
military readiness of the armed forces.
The Senate amendment contained no similar provision.
The Senate recedes.
Restatement of requirement for semiannual reports to Congress
on transfers from high-priority readiness appropriations
(sec. 362)
The House bill contained a provision (sec. 373) that would
amend section 361 of the National Defense Authorization Act
for Fiscal Year 1995 in order to provide more detailed
guidance on the report required.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment. The
conferees are disappointed that the Department of Defense has
not been sufficiently thorough in reporting on transfers from
high-priority readiness appropriations and expect future
reports to be more substantive.
Report regarding reduction of costs associated with contract
management oversight (sec. 363)
The House bill contained a provision (sec. 376) that would
require the Comptroller General to submit a report to
Congress that would identify methods to reduce the cost of
Department of Defense management and oversight of contracts
in connection with major defense acquisition programs.
The Senate amendment contained no similar provision.
The Senate recedes.
Reviews of management of inventory control points and
Material Management Standard System (sec. 364)
The House bill contained a provision (sec. 391) that would
direct the Secretary of Defense to conduct a review regarding
consolidation of all inventory control points (ICP) under the
Defense Logistics Agency. The provision would also prohibit
implementation of the Materiel Management Standard System
(MMSS) until submission of the Secretary's report to the
Congressional defense committees.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would require the
Secretary to report by March 31, 1996, on the advisability of
consolidating all ICP. The General Accounting Office would
review the Secretary's report, and review the MMSS. The
amendment would not impose a restriction on implementation of
the MMSS.
Report on private performance of certain functions performed
by military aircraft (sec. 365)
The Senate amendment contained a provision (sec. 390) that
would require the Secretary of Defense to report on the
feasibility of meeting requirements of VIP transportation,
airlift, air cargo, in-flight refueling and other functions
by using private contractors in lieu of military aircraft.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Strategy and report on automated information systems of
Department of Defense (sec. 366)
The House bill contained a provision (sec. 375) that would
prohibit the Secretary of Defense from obligating or
expending amounts greater than $2.4 billion for the
development and modernization of automated data processing
programs pending a report by the Inspector General of the
Department of Defense (DOD).
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would remove the
restriction on obligation of funds. The conferees believe
that off-the-shelf automated information systems can improve
DOD property management.

[[Page H651]]
This includes software, laminate barcode printers, barcode readers, and
storage devices.
The conferees also endorse the requirement contained in
Title III of the House report (H. Rept. 104-131) in a
paragraph of the Items of Special Interest section, entitled
``Off-the-shelf systems.'' The conferees direct the Secretary
to include in this report a discussion of functional
processes that can use existing private sector technology.

Subtitle G--Other Matters

Codification of Defense Business Operations Fund (sec. 371)
The House bill contained several provisions pertaining to
the Defense Business Operations Fund (DBOF).
Section 311 would modify DBOF by adding or precluding
various DBOF activities. The provision would also require
certain costs to be included in DBOF charges, and revise the
capital purchase authority threshold from $50,000 to $15,000.
Further, the provision would extend discretionary authority
to the Secretary of Defense or the Secretary of a military
department to purchase goods and services from non-DBOF
activities, if they are available at a more competitive rate.
Section 312 would require the Secretary of Defense to
manage DBOF under the immediate authority of the Under
Secretary of Defense (Comptroller). This would include
central management of cash balances. The provision would also
prohibit further expansion of the DBOF by adding new
functions, activities, funds or accounts to the DBOF.
Section 313 would require the inclusion of the costs of
military personnel, who perform duty in industrial fund
activities, in determining costs in DBOF activities. The
provision would also terminate the practice of billing in
advance for goods and services provided through the DBOF.
The Senate amendment contained no similar provisions.
The Senate recedes with a single amendment that would
codify DBOF, but amend the activities listed in the House
bill (sec. 312), not revise the capital purchase threshold,
and retain the prohibition on further expansion.
The amendment also would direct the Comptroller General of
the United States to determine the advisability of managing
DBOF at the Department of Defense (DOD) level. The conferees
recommend the defense committees review this matter in fiscal
year 1996 and consider the advisability of central management
in light of the Comptroller General's report and improvements
in the condition of the DBOF.
The amendment would permit advance billing for compelling
reasons, but require DOD to notify the defense committees of
the Congress after September 30, 1996 in the event the
aggregate total of advance billing exceeds $100.0 million
subsequent to enactment of the National Defense Authorization
Act for Fiscal Year 1996. Another report would be required
each time the aggregate amount of advance billing increases
by $100.0 million after the date of the preceding report.
The conferees previously expressed support for the DOD plan
to eliminate advance billing in fiscal year 1995 in the
conference report accompanying the National Defense
Authorization Act for Fiscal Year 1995. The practice of
advance billing appears to cause DBOF customers to refrain
from purchasing goods and services and it appears to promote
confusion, rather than good business, at the unit or
installation level.
The conferees also support the effort to capture total
costs in order to conduct business operations in accordance
with generally accepted business practices. The conferees
direct the Secretary of Defense to annotate the justification
books accompanying subsequent budget submissions for DBOF
activities, to reflect the total costs for both military and
civilian personnel. These costs should include items such as
salaries, benefits, and retirement plans. The conferees
believe it is necessary for Congress to evaluate the
consequences of including such costs in DBOF rates and
pricing.
Clarification of services and property exchanged to benefit
the historical collection of the armed forces (sec. 372)
The House bill contained a provision (sec. 321) that would
clarify the law concerning the exchange of services and
property for the benefit of the historical collection of the
armed services.
The Senate amendment contained no similar provision.
The Senate recedes.
Defense Business Management University (sec. 373)
The House bill contained a provision (sec. 381) that would
prohibit the use of funds for any lease with respect to the
Center for Financial Management Education and Training of the
Defense Business Management University (DBMU) if the lease
would be treated as a capital lease for budgetary purposes.
The Senate amendment contained a provision (sec. 351) that
would require the Secretary of Defense to certify the need
for the Center for Financial Management Education and
Training of the DBMU, and report on Department of Defense
financial management training, 90 days prior to obligating
funds for a capital lease.
The House recedes with an amendment that would require the
Secretary of Defense to make the determination of the
location of the center using a merit-based selection process
and report to the Committee on Armed Services of the Senate
and the Committee on National Security of the House of
Representatives on the details of this selection process at
least 30 days prior to entering into a capital lease.
Permanent authority for use of proceeds from the sale of
certain lost, abandoned, or unclaimed property (sec. 374)
The House bill contained a provision (sec. 388) that would
provide permanent authority for a successful demonstration
program for the disposal of certain personal property.
The Senate amendment contained a provision (sec. 383) that
would provide similar permanent authority, but would provide
further authority to credit the operation and maintenance
account of a relevant installation for the costs incurred to
collect, transport, store, protect, or sell such property.
Net proceeds from a sale would be covered into the Treasury.
A mechanism for subsequent claims by an owner, heir, etc.,
would also be provided.
The House recedes with a clarifying amendment.
Sale of military clothing and subsistence and other supplies
of the Navy and Marine Corps (sec. 375)
The House bill contained a provision (sec. 393) that would
provide to Navy and Marine Corps personnel the same authority
that Army an Air Force personnel currently have to purchase
replacement subsistence and other supplies.
The Senate amendment contained a similar provision (sec.
384).
The House recedes with a technical amendment.
Personnel services and logistical support for certain
activities held on military installations (sec. 376)
The House bill contained a provision (sec. 385) that would
clarify the authority of the Secretary of Defense in regard
to jamborees conducted by the Boy Scouts of America on
military installations.
The Senate amendment contained no similar provision.
The Senate recedes.
Retention of monetary awards (sec. 377)
The House bill contained a provision (sec. 386) that would
permit the Secretary of Defense to accept any monetary award
for excellence, given to the Department of Defense by a
nongovernmental entity, as an award in a competition
recognizing excellence or innovation in providing services or
administering programs. Such an award would be credited to
the appropriation of the command, installation, or activity
that is recognized in the award, as provided in appropriation
acts. Not more than 50 percent of the monetary award may be
disbursed to the persons who are responsible for earning the
award, up to $10.0 thousand per person.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would permit the
Secretary to accept such monetary awards and disburse the
award to the morale, welfare, and recreation nonappropriated
fund account of the command, installation, or activity
involved in earning the award. Certain incidental expenses
could be reimbursed from the award amount.
Provision of equipment and facilities to assist in emergency
response actions (sec. 378)
The House bill contained a provision (sec. 383) that would
amend section 372 of title 10, United States Code, to
authorize the Department of Defense to provide assistance in
the form of training facilities, sensors, protective
clothing, antidotes, and other materials and expertise to
appropriate federal, state, or local law enforcement agencies
for responding to emergencies involving chemical or
biological agents.
The Senate amendment did not contain a similar provision.
The Senate recedes with a technical amendment.
Department of Defense military and civil defense preparedness
to respond to emergencies resulting from a chemical,
biological, radiological, or nuclear attack (sec. 379)
The Senate amendment contained a provision (sec. 223) that
would require the Secretaries of the Departments of Defense
and Energy, in consultation with the Federal Emergency
Management Agency (FEMA), to submit a report to Congress that
would describe the military and civil defense plans and
programs to respond to the use of chemical, biological,
nuclear, and radiological agents or weapons against a
civilian population located in the United States or near a
U.S. military installation.
The House bill did not contain a similar provision.
The House recedes with an amendment.

Legislative Provisions Not Adopted

Office of Economic Adjustment
The House bill contained a provision (sec. 304) that would
increase the amount of funds available to the Office of
Economic Adjustment by $1.5 million.
The Senate amendment contained no similar provision.
The House recedes.
Annual proposed budget for operation of defense business
operations fund
The House bill contained a provision (sec. 314) that would
require that the budget request for the Department of Defense
include the amount of funds necessary to cover the operating
losses of the Defense Business Operations Fund for the
previous year.

[[Page H652]]

The Senate amendment contained no similar provision.
The House recedes.
Reduction in requests for transportation funded through
Defense Business Operations Fund
The House bill contained a provision (sec. 315) that would
direct a reduction in requests for purchasing transportation
through the Defense Business Operations Fund during fiscal
year 1996 by $70.0 million from the amount purchased in
fiscal year 1995. The provision would also require a report
on achieving certain efficiencies.
The Senate amendment contained no similar provision.
The House recedes.
The conferees are concerned about the amount of overhead
carried by the Department of Defense (DOD) to support its
transportation infrastructure. The conferees direct the
Secretary of Defense to submit a report to Congress by March
1, 1996. The Secretary should address changes to the
transportation infrastructure and implementation of
consolidation proposals, such as the elimination of
duplication in component command structure. The Secretary
should also address measures to reduce transportation
overhead without adversely affecting operational and
mobilization requirements. The conferees recommend a $70.0
million reduction in anticipation of savings from
improvements and efficiencies.
Repeal of certain environmental education programs
The House bill contained a provision (sec. 323) that would
repeal sections 1333 and 1334 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 103-160;
10 U.S.C. 2701, note).
The Senate amendment contained no similar provision.
The House recedes.
Repeal of limitation on obligation of amounts transferred
from environmental restoration transfer account
The House bill contained a provision (sec. 324) that would
eliminate the statutory ``fence'' that precludes the transfer
of funds from the Defense Environmental Restoration Account
(DERA) for purposes unrelated to environmental remediation.
The Senate amendment contained no similar provision.
The House recedes.
Elimination of authority to transfer amounts for
toxicological profiles
The House bill contained a provision (sec. 325) that would
amend section 2704 of title 10, United States Code. The
provision would eliminate authority for the Department of
Defense to use Defense Environmental Restoration Account
funds to reimburse the Agency for Toxic Substance and Disease
Registry (ATSDR), a branch of the U.S. Public Health Service.
Reimbursement is currently provided to ATSDR for performing
statutorily required health assessments and health risk
studies at Defense installations listed on the National
Priorities List (NPL).
The Senate amendment contained no similar provision.
The House recedes.
Pricing policies for commissary store merchandise
The House bill contained a provision (sec. 342) that would
reduce administrative costs in pricing commissary
merchandise.
The Senate amendment contained no similar provision.
The House recedes.
The conferees recognize that there may be potential savings
for the Defense Commissary Agency (DeCA) if variable pricing
was permitted. Therefore, the conferees direct that the
Secretary of Defense submit a report to the Senate Committee
on Armed Services and the House Committee on National
Security not later than May 1, 1996 describing how a variable
pricing policy would be implemented; the estimated savings,
if any; the impact on customers and suppliers; and a
recommended legislative proposal, if appropriate.
Procurement of electricity from most economical source
The House bill contained a provision (sec. 357) that would
require the Department of Defense (DOD) to procure
electricity from the most economical source.
The Senate amendment contained no similar provision.
The House recedes.
The conferees direct the Department of Defense to consult
with the Federal Energy Regulatory Commission (FERC) on
methods to obtain lower prices for the electricity procured
by the DOD, including procurement of such electricity through
competitive sources. Decisions with regard to procurement of
electricity by the DOD and the FERC should take into
consideration the cost savings potential to the DOD and the
recovery of the specific cost of utility investment that is
directly attributable to existing arrangements and
understandings with the DOD.
The conferees direct the Department of Defense to submit a
report to Congress by March 1, 1996 on the feasibility of
attaining the most economical price for electricity under
existing statutes. In addition, the DOD shall report on all
legislative or regulatory impediments to procuring
electricity from the most economical source and the potential
cost savings inherent to the elimination of such impediments.
The report shall also identify those bases or facilities that
are in the best position to use competitive sources of
electricity.
Procurement of certain commodities from most economical
source
The House bill contained a provision (sec. 358) that would
enable the Department of Defense (DOD) to procure commodities
from a source other than the General Services Administration
(GSA) if the source can provide the commodities at a lower
cost.
The Senate amendment contained no similar provision.
The House recedes.
The conferees are aware that the requirement for DOD to
purchase commodities from GSA denies DOD the flexibility to
pursue good business practices by preventing DOD from
procuring items at the lowest cost. This inflexibility seems
to run counter to the desire of Congress, and it does not
promote good business practices within DOD. Encouraging
managers at all levels to make sound business decisions is an
underlying fundamental of the Defense Business Operations
Fund concept.
The conferees direct the Secretary of Defense to report to
the congressional defense committees by March 1, 1996,
regarding the advisability of obtaining the authority to
bypass GSA. The Secretary should identify any statutory
relief necessary.
Private operation of functions of Defense Reutilization and
Marketing Service
The House bill contained a provision (sec. 361) that would
require the Secretary of Defense to solicit for performance,
by commercial entities, of selected functions of the Defense
Reutilization and Marketing Service (DRMS). The provision
would require the Secretary to report on those functions that
should continue to be performed by Department of Defense
(DOD) civilian employees not later than July 1, 1996.
The Senate amendment contained no similar provision.
The House recedes.
The conferees expect the Secretary to address the
privatization of DRMS functions as part of the DOD-wide
review and report, regarding increased reliance on private
sector sources for commercial products and services, required
elsewhere in this bill.
Pilot program for private operation of consolidated
information technology functions of Department of Defense
The House bill contained a provision (sec. 366) that would
require the Secretary of Defense to enter into negotiations
for contracting-out the workload of three Defense
Megacenters. This effort would serve as a three-year pilot
program to determine the advisability of having this type of
work performed by the private sector. The goal of the program
would be to achieve savings of at least 35 percent over
current practices. Further consolidation of megacenters, to
fewer than the 16 currently identified, would be prohibited
until completion of the pilot program.
The Senate amendment contained no similar provision.
The House recedes.
The conferees believe there is significant potential to
make improvements in the efficiency and effectiveness of the
Department of Defense (DOD) data processing operations, to
include the data megacenters. The conferees also believe
there may be significant potential to achieve savings from
contracting-out work that is not military-essential or
otherwise unique to government. However, judgments on the
advantages of contracting-out work should be based on
economic and mission analyses, which the DOD has not
performed.
The conferees direct the Secretary to submit a report on
this matter to the defense committees by May 31, 1996. The
report should include: the rationale for contracting-out
work; an analysis of the costs and benefits of contracting-
out a portion of the workload; a detailed description of
information technology functions and services performed by
megacenters that are not considered military essential; and
the amount of savings anticipated to be achieved by
contracting-out. The conferees note that functions considered
to be military-essential, and those that pertain to
information security, military readiness, certain aspects of
training, and warfighting, are not required to be addressed
in this report.
Authority of Inspector General over investigations of
procurement fraud
The House bill contained a provision (sec. 382) that would
consolidate responsibility for all investigations of
procurement fraud within the Department of Defense under the
Inspector General.
The Senate amendment contained no similar provision.
The House recedes. Under the Inspector General Act of 1978,
as amended, the overall responsibility for investigations
within the DOD, including procurement fraud investigations,
rests with the Inspector General. The Inspector General has
full authority to investigate any allegations of procurement
fraud involving a DOD contractor. Day-to-day responsibility
for the conduct of procurement fraud investigations is
divided among the investigative organizations of the
Department of Defense and each of the military departments.
The Inspector General also has full authority to assume
responsibility for any procurement fraud investigation
initiated by one or more of the military departments.
The Defense Advisory Board on the Investigative
Capabilities of the DOD unanimously recommended that fraud
investigations be consolidated into the Office of the

[[Page H653]]
Inspector General. The recommendation was based on several objectives
that would include eliminating joint investigations,
eliminating confusion over joint investigations, and
increasing the capability to identify multiple acts of fraud
by the same contractors.
The conferees note that there have been continuing concerns
about duplication and coordination between the Department of
Defense Inspector General and the investigative components of
the military departments with respect to major procurement
fraud investigations. The conferees agree that the Department
must endeavor to concentrate procurement fraud efforts on
investigations rather than jurisdictional disputes.
Therefore, the conferees believe that the Secretary of
Defense should make every effort to ensure that this
important function is performed in the most efficient and
effective manner, avoiding the necessity for joint
investigations to the maximum extent practicable.
The conferees are encouraged to note that the Department
recently established a coordinating council, headed by the
DOD Inspector General, to address some of the concerns raised
by the Defense Advisory Board. To ensure the effectiveness of
the new procedures, the conferees direct that the Secretary
review the newly constituted Secretary's Board on
Investigations, with a particular emphasis on maximizing the
efficiency and effectiveness of major procurement fraud
investigations. As part of this review, the Secretary should
assess: (1) the optimal level of resources required to ensure
a robust oversight function within the Department; (2) which
DOD investigative components should conduct procurement fraud
investigations; and (3) the optimal organization required to
increase the DOD capability to maximize procurement fraud
recoveries and indictments.
The conferees direct the Secretary to provide a report by
May 1, 1996, to the congressional defense committees on the
results of this review. The conferees will assess this report
to ascertain whether further legislation is necessary to
address remaining concerns over duplication and coordination
problems among the DOD investigative components.
Transfer of excess personal property to support law
enforcement activities
The House bill contained a provision (sec. 389) that would
amend section 1208(a)(1)(A) of the National Defense
Authorization Act for Fiscal Years 1990 and 1991, concerning
the transfer of excess personal property. This provision
would expand current authority to permit the Secretary of
Defense to transfer excess property to state and other
federal agencies for use in law enforcement activities.
Current authority contained in the above section addresses
only transfers to such agencies for their use in counter-drug
activities.
The Senate amendment contained no similar provision.
The House recedes.
The conferees note that numerous avenues currently exist to
transfer excess property to state and other federal agencies,
including law enforcement agencies which do not have explicit
counternarcotics responsibilities. However, there appears to
be no coherent policy, priority, or central data base which
allows such agencies to learn what is available at a given
time, or to effect a transfer without inordinate
administrative work.
The conferees direct the Secretary of Defense to review
this matter and report to the defense committees of the
Congress not later than March 30, 1996, on developing a
comprehensive policy and establishing procedures which would
assist state and federal law enforcement agencies in
identifying and obtaining such equipment. The Secretary
should consider Memoranda of Understanding as a means to
effect transfers.
The Secretary should also give high priority consideration
to state and federal law enforcement agencies that
demonstrate their need for such equipment.
Development and implementation of innovative processes to
improve operation and maintenance
The House bill contained a provision (sec. 390) that would
direct that $350.0 million, of the funds authorized and
appropriated for defense-wide operation and maintenance, be
available for the development or acquisition of information
technologies and reengineered functional processes.
The Senate amendment contained no similar provision.
The House recedes.
Sale of 50 percent of current war reserve fuel stocks and
prepositioned war reserves
The House bill contained a provision (sec. 392) that would
require the Secretary of Defense to reduce war reserve fuel
stocks of the Department of Defense to a level equal to 50
percent of the level of such stocks on January 1, 1995.
The Senate amendment contained no similar provision.
The House recedes.
The conferees believe that the DOD has made considerable
progress in identifying its fuel requirements necessary for
wartime operations. This has led to a reduction in the
required level of war reserves. The conferees urge the DOD to
continue its efforts in this area in order to save money
while maintaining military readiness.
The conferees further believe that there is considerable
opportunity to address critical afloat and ashore war reserve
deficiencies. The conferees agree to add $60 million for
purchases of critical war reserve stocks. This funding is
authorized in the operation and maintenance, defense-wide
activities account for application to high priority war
reserve requirements. The Secretary of Defense is requested
to report on the expenditure of these funds to the
congressional defense committees prior to their allocation
and should seek the views of theater commanders-in-chief in
determining the application of these resources.
Southwest border states anti-drug information system
The House bill included a provision (sec. 396) that
indicated that the Southwest Border States Anti-Drug
Information Systems program is an important element of the
Department of Defense support of law enforcement agencies in
the fight against illegal trafficking of narcotics.
The Senate amendment contained no similar provision.
The House recedes. The Southwest Border States Anti-Drug
Information System is addressed elsewhere in this statement
of managers.
Elimination of certain restrictions on purchases and sales of
items by exchange stores and other morale, welfare, and
recreation (MWR) facilities
The Senate amendment contained a provision (sec. 372) that
would eliminate the cost, price, size, and country of origin
limitations on purchases and sales of items sold in the
military exchanges and morale, welfare, and recreation
facilities.
The House bill contained no similar provision.
The Senate recedes.
Funding for Troops to Teachers and Troops to Cops Programs
The Senate amendment contained a provision (sec. 388) that
would authorize $42.0 million for the Troops-to-Teachers
program and $10.0 million for the Troops-to-Cops program from
amounts authorized for military personnel for fiscal year
1996.
The House bill contained no similar provision.
The Senate recedes.
The conferees recognize that these programs address the
economic dislocation among service members caused by the
defense drawdown. Therefore, the conferees invite the
Department of Defense to determine whether use of existing
resources, if available, is appropriate to continue these
programs.
Authorization of amounts requested in the budget for Junior
ROTC
The Senate amendment contained a provision (sec. 389) that
would restore the authorization to fund Junior Reserve
Officer's Training Corps (JROTC) at the budget request.
The House bill authorized the JROTC program at the budget
request.
The Senate recedes.
The conferees agree to authorize the JROTC program at the
budget request.
Use of commissary stores by members of the ready reserve
The Senate amendment contained a provision (sec. 631) that
would permit members of the ready reserve to use commissaries
on the same basis as members on active duty.
The House bill contained no similar provision.
The Senate recedes.
Use of commissary stores by retired reserves under age 60 and
their survivors
The Senate amendment contained a provision (sec. 632) that
would permit survivors of ``gray area'' retirees, members of
the retired reserve who have not attained the age of 60
years, to use commissaries as if the sponsor had attained 60
years of age and was receiving retirement benefits.
The House bill contained no similar provision.
The Senate recedes.

Title IV--Military Personnel Authorizations

ITEMS OF SPECIAL INTEREST

Minimum force structure levels for Navy Light Airborne
Multipurpose System helicopters
The conferees note that the Navy Light Airborne
Multipurpose System (LAMPS) antisubmarine warfare helicopter
fleet provides an essential element to the Nation's overall
antisubmarine warfare capability. The conferees understand
that the Navy has no plans to reduce the number of active or
reserve LAMPS squadrons below the 14 currently in the force
structure during fiscal years 1996 or 1997. The conferees
believe that 14 LAMPS squadrons is the minimum structure
necessary and fully expect the Navy to continue to support
that level of force structure.

legislative provisions

legislative provisions adopted

Subtitle A--Active Forces

End strengths for active forces (sec. 401)
The House bill contained a provision (sec. 401) that would
establish active duty end strengths for fiscal year 1996.
The Senate amendment contained a similar provision (sec.
401), but would include an increase of 340, of which 65 would
be officers, in Navy end strength to permit the Navy to
retain an active P-3 squadron scheduled for inactivation in
fiscal year 1996.
The following table summarizes the authorized active duty
end strengths for fiscal year 1996.

[[Page H654]]

----------------------------------------------------------------------------------------------------------------
Fiscal year
-----------------------------------------------
1995 1996
Authorization 1996 Request Recommendation
----------------------------------------------------------------------------------------------------------------
Army:
Total....................................................... 510,000 495,000 495,000
Officer..................................................... .............. 81,300 81,300
Navy:
Total....................................................... 441,641 428,000 428,340
Officer..................................................... .............. 58,805 58,870
Marine Corps:
Total....................................................... 174,000 174,000 174,000
Officer..................................................... .............. 17,978 17,978
Air Force:
Total....................................................... 400,051 388,200 388,200
Officer..................................................... .............. 75,928 75,928
Total................................................... 1,525,692 1,485,200 1,485,540
Officer................................................. .............. 234,011 234,076
----------------------------------------------------------------------------------------------------------------

The House bill also contained a provision (sec. 521) that
would establish permanent end strength levels beginning in
fiscal year 1996.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would integrate
the House bill provision (sec. 521) into this section.
Temporary variation in DOPMA authorized end strength
limitations for active duty Air Force and Navy officers
in certain grades (sec. 402)
The House bill contained a provision (sec. 402) that would
authorize a temporary increase in the number of officers who
can serve on active duty in the grade of major in the Air
Force and in the grades of lieutenant commander, commander,
and captain in the Navy until September 30, 1997.
The Senate amendment contained a similar provision (sec.
402).
The House recedes.
The conferees fully expect the Secretary of Defense to
provide a comprehensive proposal to restructure the
authorized strength tables for commissioned officers on
active duty in time for the committee to address, in the
National Defense Authorization Act for Fiscal Year 1997, a
permanent solution to perceived recurring shortages of
officers in controlled grades for each service.
Certain general and flag officers awaiting retirement not to
be counted (sec. 403)
The Senate amendment contained a provision (sec. 403) that
would exempt a retiring Chairman of the Joint Chiefs, Chief
of Staff of the Army, Chief of Naval Operations, Chief of
Staff of the Air Force, or Commandant of the Marine Corps
from being included in the number of general and flag
officers on active duty, authorized to be serving in the
grade of general and admiral, during the period when they
would complete those activities necessary to transition to
the retired list after they have been relieved from their
former position.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
The conferees agree that the five positions in this
provision represent the totality of the critical positions
for which an exemption of this type is appropriate. The
conferees expect that the Department will not request
exemptions for any additional general/flag officer positions.
The conferees intend that this authority would not be used
for more than 60 calendar days.

Subtitle B--Reserve Forces

End strengths for selected reserve (sec. 411)
The House bill contained a provision (sec. 411) that would
authorize selected reserve end strength levels for fiscal
year 1996.
The Senate amendment contained a similar provision (sec.
411).
The following table summarizes the authorized end strength
levels for the selected reserve for fiscal year 1996.

------------------------------------------------------------------------
Fiscal year
-----------------------------------------
1995 1996 1996
Authorization Request Recommendation
------------------------------------------------------------------------
The Army National Guard of the
United States................ 400,000 373,000 373,000
The Army Reserve.............. 242,000 230,000 230,000
The Naval Reserve............. 102,960 98,602 98,894
The Marine Corps Reserve...... 42,000 42,000 42,274
The Air National Guard of the
United States................ 115,581 109,458 112,707
The Air Force Reserve......... 78,706 73,969 73,969
The Coast Guard Reserve....... 8,000 8,000 8,000
------------------------------------------------------------------------

The conferees have approved an increase in the Naval
Reserve end strength, which reflects the recommendation that
the Navy retain one reserve P-3 squadron currently scheduled
for inactivation in fiscal year 1996.
The conferees have approved an increase in the Marine Corps
Reserve end strength, which reflects the conferees'
recommendation that the authorized number or reservists on
active duty in support of the Marine Corps Reserve be
increased.
The conferees have approved an increase in the Air National
Guard end strength, which reflects the conferees'
recommendation that the Air Force maintain the PAA squadrons
at 15 aircraft per squadron in fiscal year 1996.
End strengths for the Reserves on active duty in support of
the Reserves (sec. 412)
The House bill contained a provision (sec. 412) that would
authorize reserve full-time support end strength levels for
fiscal year 1996.
The Senate amendment contained a similar provision (sec.
412).
The following table summarizes the reserve full-time
support end strength levels for fiscal year 1996.

------------------------------------------------------------------------
Fiscal year
----------------------------------------
1995 1996 1996
authorization request recommendation
------------------------------------------------------------------------
The Army National Guard of the
United States................. 23,650 23,390 23,390
The Army Reserve............... 11,940 11,575 11,575
The Naval Reserve.............. 17,510 17,490 17,587
The Marine Corps Reserve....... 2,285 2,285 2,559
The Air National Guard of the
United States................. 9,389 9,817 10,066
The Air Force Reserve.......... 648 628 628
------------------------------------------------------------------------

The conferees have approved an increase in the authorized
number of reservists on active duty (AR's) in support of the
Marine Corps Reserve. The conferees note that this increase
is intended to complement existing active duty support, and
is not a substitute for any portion of the active duty
support that is part of the Inspector-Instructor system.
Therefore, the conferees direct that the Inspector-Instructor
support system not be reduced as a result of any AR increase.
Further, the conferees direct that the AR increase of 274
personnel be utilized to the extent that it is supported by a
specific appropriation. The conferees do not support
increasing the AR program if it means reducing any other
reserve programs.
The increases in the number of reservists on active duty in
support of the Naval Reserve reflects the conferees' approval
of additional selected reserve strength to enable the Navy to
retain a reserve P-3 squadron.
The increase in the number of reservists on active duty in
support of the Air National Guard reflects the conferees'
approval of selected reserve strength to enable the Air
National Guard to retain the PAA squadrons at 15 aircraft per
squadron.
Counting of certain active component personnel assigned in
support of Reserve component training (sec. 413)
The House bill contained a provision (sec. 413) that would
permit active duty personnel assigned to active duty units,
that have been and continue to be established for the
principal purpose of providing dedicated training support to
reserve component units, to be counted toward the number of
advisers required by section 414(c) of the National Defense
Authorization Act for Fiscal Years 1992 and 1993 (Public Law
102-190).
The Senate amendment contained no similar provision.
The Senate recedes.
Increase in the number of members in certain grades
authorized to serve on active duty in support of the
Reserves (sec. 414)
The Senate amendment contained a provision (sec. 413) that
would temporarily increase the number of members of certain
grades authorized to serve on active duty in support of the
reserves.
The House bill contained no similar provision.
The House recedes.
Reserves on active duty in support of Cooperative Threat
Reduction Programs not to be counted (sec. 415)
The Senate amendment contained a provision (sec. 414) that
would exempt members of a reserve component who participate
in Cooperative Threat Reduction Act programs from being
counted against the authorized active duty end strength.
The House bill contained no similar provision.
The House recedes.
Reserves on active duty for military-to-military contacts and
comparable activities not to be counted (sec. 416)
The Senate amendment contained a provision (sec. 415) that
would amend section 168 of title 10, United States Code, to
exempt members of a reserve component who participate in
activities or programs specified in section 168, for over 180
days, from counting against the end strengths for members of
the armed services on active duty, authorized by section
115(a)(1) of title 10, United States Code.
The House bill contained no similar provision.
The House recedes.

Subtitle C--Military Training Student Loads

Authorization of training student loads (sec. 421)
The House bill contained a provision (sec. 421) that would
approve the training students loads contained in the
President's budget.
The Senate amendment contained an identical provision (sec.
421).
The conference agreement includes this provision.

Subtitle D--Authorization of Appropriations

Authorization for increase in active duty end strengths (sec.
432)
The House bill contained a provision (sec. 432) that would
authorize $112.0 million in additional funds available for
increasing military personnel end strengths within the
Department of Defense above those levels requested by the
President's budget.
The Senate amendment contained no similar provision.
The Senate recedes.

Title V--Military Personnel Policy

items of special interest

Funding for the Family Advocacy Program and the New Parent
Support Program
The conferees are concerned about the adequacy of funding
requested by the Department of Defense for the Family
Advocacy Program (FAP) and the lack of funding for the New
Parent Support Program (NPSP). The conferees agree to provide
an increase of $30.0 million for the FAP and $25.6 for the

[[Page H655]]
NPSP. The conferees direct that the NPSP increase be allocated as
follows: Army--$10.0 million; Navy--$7.0 million; Marine
Corps--$5.0 million; Air Force--$3.6 million. The conferees
take this action in response to the significant strains
placed on military families as a result of the high
operations tempo in all services. The conferees consider the
FAP and the NPSP critical to the readiness and retention of
quality people.
The conferees recognize that there is fierce competition
within the Department of Defense, and among the services, for
scarce operations and maintenance funds. The conferees are
concerned that the FAP and NPSP funding may be used for other
purposes. If the Department or a service attempt to reduce,
divert, or reprogram the FAP or NPSP funding for some other
purpose, the conferees would consider such an action to be in
direct contravention of congressional intent.

legislative provisions

Legislative provisions adopted

Subtitle A--Officer Personnel Policy

Joint officer management (sec. 501)
The Senate amendment contained a provision (sec. 501) that
would amend joint officer management policies in four areas:
(1) the number of required critical joint duty assignment
positions; (2) joint duty assignment credit for certain
qualifying joint task force positions; (3) the education and
experience sequencing requirement for the award of the joint
specialty to general and flag officers; and (4) tour length
requirements for certain officers on a second joint tour.
The House bill contained no similar amendment.
The House recedes with a clarifying amendment.
The conferees note that this amendment is intended to
provide to the civilian and military leadership of the
Department of Defense some flexibility to manage the various
joint officer programs, without undermining the fundamental
tenets and goals of the Goldwater-Nichols Department of
Defense Reorganization Act of 1986. Therefore, none of the
changes included in the conference agreement should be
perceived as diminishing the importance of joint duty
assignments or the importance of rigorous preparation before
the award of the joint specialty or the need for judicious
management of those officers to whom that designator has been
awarded. The conferees revised the Department's original
proposal to preclude the Department from rapidly rotating
officers through joint task force assignments and thereby
circumventing the fundamental intent of the Goldwater-Nichols
Department of Defense Reorganization Act of 1986.

[[Page H656]]

Regarding credit for service in joint task force and
multinational force positions, the conferees recognize that
certain positions will provide real-world joint experience
equal to or greater than that provided by some positions on
the Joint Duty Assignment List. Additionally, the conferees
believe that authorizing the Secretary of Defense to award
joint duty credit for certain officers serving in joint task
force positions will permit deserving in-service assignments
to receive joint duty assignment credit. The conferees fully
expect the Secretary of Defense to closely manage the award
of joint duty credit for such positions.
Retired grade for officers in grades above major general and
rear admiral (sec. 502)
The Senate amendment contained a provision (sec. 505) that
would permit the retirement of three- and four-star generals
and flag officers to be considered under the same standards
and procedures as general and flag officer retirements at the
one- and two-star level.
The House bill contained no similar provision.
The House recedes with a technical amendment.
Wearing of insignia for higher grade before promotion (sec.
503)
The Senate amendment contained a provision (sec. 507) that
would define ``frocking'' and limit the numbers of officers
that could be frocked to grades 0-4 through 0-7.
Frocking is the practice of allowing an officer to wear the
insignia of a higher grade prior to appointment to that
higher grade. While the Department of Defense has attempted
to control the extent of frocking through regulation, the
practice remains a means by which the services routinely
circumvent the statutory limits on the number of officers
authorized to serve in certain grades.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Authority to extend transition period for officers selected
for early retirement (sec. 504)
The House bill contained a provision (sec. 501) that would
authorize the secretaries of the military departments to
defer the date of retirement for officers selected for early
retirement for up to 90 days, to avoid personal hardship or
for other humanitarian reasons.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would require the
service secretary to make the decision on a case-by-case
basis and would prohibit any delegation of this authority.
The conferees expect the Secretary of Defense and the
service secretaries to modify the instructions, regulations,
and policies pertaining to enlisted personnel in order to
provide an equivalent benefit for enlisted personnel.
Army officer manning levels (sec. 505)
The House bill contained a provision (sec. 522) that would
require that, beginning in fiscal year 1999 and thereafter,
the annual Army end strength be sufficient to meet at least
90 percent of active Army officer manpower requirements.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.
Authority for medical department officers other than
physicians to be appointed as Surgeon General (sec. 506)
The Senate amendment contained a provision (sec. 503) that
would amend sections 3036, 5137, and 8036 of title 10, United
States Code, to permit educationally and professionally
qualified officers, such as dentists, nurses, and clinical
psychologists, as well as doctors, to be appointed as surgeon
general of an armed force.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Deputy Judge Advocate General of the Air Force (sec. 507)
The Senate amendment contained a provision (sec. 504) that
would amend section 8037 of title 10, United States Code, to
adjust the tenure of the Deputy Judge Advocate General of the
Air Force from two years to four years and authorize the
grade of major general for that position.
The House bill contained no similar provision.
The House recedes.
Authority for temporary promotions for certain Navy
lieutenants with critical skills (sec. 508)
The House bill contained a provision (sec. 552(d)) that
would extend the authority for the Navy to ``spot promote''
certain lieutenants serving in positions involving critical
skills.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would extend the
authority until September 30, 1996 and limit the number of
positions to which an officer could be promoted under this
authority.
Retirement for years of service of Directors of Admissions of
Military and Air Force Academies (sec. 509)
The Senate amendment contained a provision (sec. 508) that
would authorize the Secretary of the Army to involuntarily
retire the Director of Admissions, United States Military
Academy, after 30 years of service as a commissioned officer.
The House bill contained no similar provision.
The House recedes with an amendment that would make the Air
Force Academy subject to the application of the provision.

Subtitle B--Matters Relating to Reserve Components

Extension of certain reserve officer management authorities
(sec. 511)
The House bill contained a provision (sec. 552) that would
extend authorities that provide for the appointment,
promotion, and retirement of reserve officers (sec. 552 a-c),
and the promotion of certain officers on active duty in the
Navy (sec. 552d).
The Senate amendment contained an identical provision (sec.
506), except for the authority to provide for the promotion
of certain officers on active duty in the Navy.
The conference agreement includes the identical provisions.
The promotion of certain officers on active duty in the
Navy is addressed elsewhere in the conference report.
Mobilization Income Insurance Program for members of Ready
Reserve (sec. 512)
The House bill contained a provision (sec. 517) that would
authorize an income protection insurance plan for members of
the Ready Reserve.
The Senate amendment contained a similar provision (sec.
511).
The conference agreement includes this provision.
Military technician full-time support program for Army and
Air Force Reserve components (sec. 513)
The House bill contained a provision (sec. 511) that would
restore military technician end strength to nearly the fiscal
year 1995 level and require that the Secretary of Defense, in
the future, manage military technicians by annual end
strength. This section would also prohibit military
technicians in certain high priority units and activities,
but not those at management-level headquarters, from being
subject to broad civilian personnel reductions. In addition,
this section would require the Secretary of Defense, within
six months of enactment, to initiate measures to consolidate
and streamline management-level headquarters at the National,
regional, and state level in the Air Force and Army Reserve
and National Guard. This section would also require that,
after the date of enactment, only dual-status technicians be
hired.
The Senate amendment contained a provision (sec. 331) that
would establish a floor for military technicians in the Army
and Air Force Reserve and National Guard for fiscal years
1996 and 1997.
The Senate recedes with an amendment that would establish a
floor for military technicians in the Army and Air Force
Reserve and National Guard at the House level.
The conferees recognize the critical importance of military
technicians to reserve component readiness, and direct the
use of end-strength floors to manage this special category of
personnel. The conferees urge the Secretary of Defense and
the Secretaries of the military departments to provide the
requisite funding to ensure that the correct number of
qualified military technicians are available to ensure a
significant contribution to operational readiness.
Revisions to Army Guard combat reform initiative to include
Army reserve under certain provisions and to make certain
revisions (sec. 514)
The House bill contained a provision (sec. 513) that would
change the requirement of section 1111 of the Army National
Guard Combat Readiness Reform Act of 1992 (title XI, Public
Law 102-484). As revised, the section would require the Army
to annually provide at least 150 officers and 1,000 soldiers,
with at least two years prior active duty experience, to
national guard units.
This section would also expand the Army selected reserve
requirements of sections 1112(b), 1113, 1115, 1116, and 1120
of the Army National Guard Combat Readiness Reform Act of
1992 (title XI, Public Law 102-484).
The Senate amendment contained no similar provision.
The Senate recedes.
Active duty associate unit responsibility (sec. 515)
The House bill contained a provision (sec. 519) that would
amend section 1131 of the Army National Guard Combat
Readiness Reform Act of 1992 (title XI, Public Law 102-484).
As revised, the provision would require that each Army
National Guard brigade and Army Selected Reserve unit,
considered essential for execution of the national strategy,
be associated with an active duty unit.
The Senate amendment contained no similar provision.
The Senate recedes.
Leave for members of reserve components performing public
safety duty (sec. 516)
The Senate amendment contained a provision (sec. 513) that
would amend section 6323(b) of title 5, United States Code,
that would permit employees who elect, when performing public
safety duty, to use either military leave, annual leave, or
compensatory time, to which they are otherwise entitled.
The House bill contained no similar provision.
The House recedes.

[[Page H657]]

Department of Defense funding for National Guard
participation in joint disaster and emergency assistance
exercises (sec. 517)
The Senate amendment contained a provision (sec. 361) that
would provide funding authority for National Guard units to
participate in joint exercises to prepare them to respond to
civil emergencies or disasters.
The House bill contained no similar provision.
The House recedes.

Subtitle C--Decorations and Awards

Award of Purple Heart to persons wounded while held as
prisoners of war before April 25, 1962 (sec. 521)
The Senate amendment contained a provision (sec. 541) that
would authorize award of the Purple Heart to prisoners of war
captured before April 1962 who were injured or wounded in
conjunction with their capture or imprisonment.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Authority to award decorations recognized acts of valor
performed in combat during the Vietnam conflict (sec.
522)
The Senate amendment contained a provision (sec. 542) that
would authorize the Secretary of Defense or the secretaries
of the military departments to award a decoration for an act,
achievement, or service performed during the Vietnam era for
which there was no award provided. The provision would
establish a one-year period in which award recommendations
could be submitted for consideration and existing award
review procedures would be used. At the end of one year, the
Secretary would be required to report to the Congress on the
results on this review.
The House bill contained no similar provision.
The House recedes with an amendment to limit consideration
of decorations for acts of valor.
Military intelligence personnel prevented by secrecy from
being considered for decorations and awards (sec. 523)
The Senate amendment contained a provision (sec. 543) that
would require the secretaries of the military departments,
upon application, to review the records of personnel who
performed military intelligence duties during the Cold War
period.
The House bill contained no similar provision.
The House recedes.
The conferees expect the secretaries of the military
departments to take reasonable actions to widely publicize
the opportunity to submit requests for consideration of
awards and decorations under this provision.
Review regarding upgrading of Distinguished Service Crosses
and Navy Crosses awarded to Asian Americans and Native
American Pacific Islanders for World War II Service (sec.
524)
The Senate amendment contained a provision (sec. 544) that
would require the Secretary of Defense to review that records
of Asian Americans who received the Distinguished Service
Cross during World War II to determine if, except for racial
prejudice, the act(s) would have merited award of the Medal
of Honor.
The House bill contained no similar provision.
The House recedes with an amendment which would make all
the services subject to the application of the provision.
Eligibility for Armed Forces Expeditionary Medal based upon
service in El Salvador (sec. 525)
The House bill contained a provision (sec. 559) that would
designate the country of El Salvador, during the period
beginning on January 1, 1981, and ending on February 1, 1992,
as an area and a period of time in which members of the Armed
forces participated in operations in significant numbers and
otherwise met the general requirements for award of the Armed
Forces Expeditionary Medal.
The Senate amendment contained no similar provision.
The Senate recedes.
Procedure for consideration of military decorations not
previously submitted in timely fashion (sec. 526)
The conference agreement includes a provision that would
establish procedures under which Members of Congress can
forward to the secretary of a military department a
recommendation for a military award or decoration, including
an upgrade of a previously approved award or decoration, for
consideration by the Secretary, without regard to time limits
established in law or policy. The secretary concerned will
make a recommendation concerning the merits of the request to
the Senate Committee on Armed Services and the House
Committee on National Security.
In accordance with established standards, the conferees
believe that the burden and costs for researching and
assembling documentation to support approval of requested
awards and decorations should rest with the requestor and
should not cause an undue administrative burden within the
Legislative or Executive Branch.
The conferees note that the Department of Defense has
traditionally avoided consideration of requests for review of
military awards on the merits by citing the expiration of
various time limits. The conferees, in general, do not
support the provision of military awards or decorations
through private relief bills. The conferees intend that the
secretaries' recommendations would be the basis for
consideration of a waiver of time limits, if appropriate.

Subtitle D--Officer Education Programs

Revision of service obligation for graduates of the services
academies (sec. 531)
The Senate amendment contained a provision (sec. 502) that
would reduce the service obligation for graduates of the
service academies from six years to five years.
The House bill contained no similar provision.
The House recedes.
Nomination to service academies from Commonwealth of the
Northern Marianas Islands (sec. 532)
The House bill contained a provision (sec. 564) that would
authorize the Resident Representative of the Commonwealth of
the Northern Marianas Islands to nominate one cadet for
attendance at each of the service academies.
The Senate amendment contained no similar provision.
The Senate recedes.
Repeal of requirement for athletic director and
nonappropriated fund account for the athletics programs
at the service academies (sec. 533)
The Senate amendment contained a provision (sec. 557) that
would repeal sections 4357 and 9356 of title 10, United
States Code, and subsections (b), (d), and (e) of sections
556 of the National Defense Authorization Act for Fiscal Year
1995 (Public Law 103-337).
The House bill contained a similar provision (sec. 1032r).
The conference report includes this provision.
Repeal of requirement for program to test privatization of
service academy preparatory schools (sec. 534)
The Senate amendment contained a provision (sec. 558) that
would terminate any test program for determining the cost
effectiveness of transferring, in whole or in part, the
mission of the military academy preparatory schools to the
private sector.
The House bill contained no similar provision.
The House recedes with a technical amendment.
ROTC access to campuses (sec. 541)
The House bill contained a provision (sec. 1034) that would
deny Department of Defense grants and contracts to any
institution that has an anti-ROTC policy, as determined by
the Secretary of Defense.
The Senate amendment contained no similar provision.
The Senate recedes.
ROTC scholarships for the National Guard (sec. 542)
The House bill contained a provision (sec. 514) that would
authorize the Secretary of the Army, with the agreement of
the ROTC cadet involved, to redesignate ongoing scholarships
as scholarships leading toward service in the Army National
Guard and to make other technical changes.
The Senate amendment contained no similar provision.
The Senate recedes.
Delay in reorganization of Army ROTC regional headquarters
structure (sec. 543)
The House bill contained a provision (sec. 518) that would
delay the closure of an Army ROTC regional headquarters until
the Secretary of the Army determines whether such closure is
in the best interests of the Army.
The Senate amendment contained a similar provision (sec.
560).
The conference agreement includes this provision.
Duration of field training or practice cruise required under
the Senior ROTC program (sec. 544)
The Senate amendment contained a provision (sec. 554) that
would permit the secretary of a military department to
prescribe the length of the field training portion or
practice cruise that must be completed for enrollment in the
Reserve Officers' Training Corps Advance Course by persons
who have not participated in the first two years of Reserve
Officers' Training Corps.
The House bill contained no similar provision.
The House recedes.
Active duty officers detailed to ROTC duty at senior military
colleges to serve as commandant and assistant commandant
of cadets and as tactical officers (sec. 545)
The House bill contained a provision (sec. 516) that would
require that, upon the request of any of the six senior
military colleges, the Secretary of Defense shall detail
active duty officers to serve as the commandant or assistant
commandant of cadets, and as tactical officers at the
institution.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would provide the
Secretary discretion in responding to a request from a senior
military college.
The conferees expect that the service secretaries will
respond positively to any request, from a senior military
college, to provide an officer to serve as the commandant or
assistant commandant, or as a tactical officer.

Subtitle E--Miscellaneous Reviews, Studies, and Reports

Report concerning appropriate forum for judicial review of
Department of Defense personnel actions (sec. 551)
The Senate amendment contained a provision (sec. 559) that
would establish a panel to

[[Page H658]]
examine whether the existing practices with regard to judicial review
of DOD administrative personnel actions are appropriate and
adequate, whether a centralized judicial review of
administrative personnel actions should be established, and
whether the United States Court of Appeals for the Armed
Forces should conduct such reviews. This approach has been
recommended by the American Bar Association.
The House bill contained no similar provision.
The House recedes with an amendment that would require the
panel to examine whether a single federal court should
conduct such reviews, and, if so, which federal court should
be assigned that responsibility. The amendment would provide
the Secretary of Defense with the responsibility to establish
the panel. The conference agreement required that the
Secretary consult with the Attorney General and the Chief
Justice of the United States concerning appointments to the
panel. The conferees also required that the Secretary consult
with the Attorney General prior to sending the report to
Congress.
Comptroller General review of proposed Army end strength
allocations (sec. 552)
The House bill contained a provision (sec. 523) that would
require the Comptroller General of the United States to
determine the extent to which the Army is able to fully man
the combat and support forces required to carry out the
national security strategy and operations other than war for
fiscal years 1996 through 2001.
The Senate amendment contained no similar provision.
The Senate recedes.
Report on manning status of highly deployable support units
(sec. 553)
The House bill contained a provision (sec. 524) that would
direct each of the secretaries of the military departments to
conduct a study to determine whether high-priority support
units, that would deploy early in a crisis, are, as a matter
of policy, manned at less than 100 percent of authorized
strengths. The provision would further require the
secretaries of the military departments to report the
findings of their studies not later than September 30, 1996.
The Senate amendment contained no similar provision.
The Senate recedes.
Review of system for correction of military records (sec.
554)
The Senate amendment contained a provision (sec. 555) that
would require the secretaries of the military departments to
review the composition of the Boards for the Correction of
Military Records and the procedures used by those boards. The
provision would require the submission of a report to the
appropriate committees of the Senate and the House of
Representatives by April 1, 1996.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
The conferees are concerned that the Boards for the
Correction of Military Records are perceived to be
unresponsive, bureaucratic extensions of the uniformed
services.
Report on the consistency of reporting of fingerprint cards
and final disposition forms to the Federal Bureau of
Investigation (sec. 555)
The House bill contained a provision (sec. 565) that would
require the Secretary of Defense to submit a report on the
consistency with which fingerprint cards and final
disposition forms are reported by the Defense Criminal
Investigation Organizations to the Federal Bureau of
Investigation.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.

Subtitle F--Other Matters

Equalization of accrual of service credit for officers and
enlisted members (sec. 561)
The House bill contained a provision (sec. 551) that would
make the criteria for accrual of service credit for officers
consistent with the criteria established for enlisted
members.
The Senate amendment contained a similar provision (sec.
552).
The conference agreement includes this provision.
Army ranger training (sec. 562)
The House bill contained a provision (sec. 557) that would
establish a baseline number of officers and enlisted
personnel that would have to be assigned to the Army Ranger
Training Brigade and would give the Secretary of the Army one
year to achieve that level. This provision would also require
that training safety cells be established in each of the
three major phases of the Ranger training course.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment which would require
the Ranger Training Brigade to be manned at 90 percent of the
requirements for two years, at which time the statutory
requirement would expire. The amendment would also require
the Comptroller General to assess the effectiveness of
corrective actions taken by the Army as a result of the
February 1995 accident at the Florida Ranger Training Camp.
The amendment also expresses the sense of the Congress that
the Secretary of Defense review and enhance, if necessary,
oversight of all high-risk training and consider
establishment of safety cells similar to those prescribed in
the Ranger Training Brigade.
The conferees direct the secretary of defense to undertake
a comprehensive analysis of high-risk training activities, to
include, but not limited to the following: Army-Ranger; Navy
SEAL; Navy and Air Force Survival, Evasion, Resistance, and
Escape; and Airborne training. The study should identify key
contributing factors prejudicial to personnel safety. This
study shall include sensitivity analysis for each high-risk
training program, with particular emphasis on officer-
enlisted ratios and instructor-student ratios. The conferees
direct the Secretary to submit the study results to the
Senate Committee on Armed Services and the House Committee on
National Security not later than December 31, 1996.
Separation in cases involving extended confinement (sec. 563)
The Senate amendment contained a provision (sec. 553) that
would authorize the administrative separation of a service
member who is sentenced by court-martial to a period of
confinement for one year or more.
The House bill contained no similar provision.
The House recedes with an amendment that would authorize
such a separation if the member has been sentenced to a
period of confinement for more than six months.
Limitations on reductions in medical personnel (sec. 564)
The Senate amendment contained a provision (sec. 556) that
would amend section 711 of the National Defense Authorization
Act for Fiscal Year 1991, section 718 of the National Defense
Authorization Act for Fiscal Years 1992 and 1993, and section
518 of the National Defense Authorization Act for Fiscal Year
1993 to modify the limitations on reductions in medical
personnel.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Sense of Congress concerning personnel tempo rates (sec. 565)
The House bill contained a provision (sec. 525) that would
express the sense of Congress that the Secretary of Defense
should continue to improve the Department's personnel tempo
management techniques so that all personnel can expect a
reasonable personnel tempo rate.
The Senate amendment contained no similar provision.
The Senate recedes.
Separation benefits during force reduction for officers of
the commissioned corps of National Oceanic and
Atmospheric Administration (sec. 566)
The House bill contained a provision (sec. 566) that would,
at the discretion of the Secretary of Commerce, authorize for
officers of the Commissioned Corps of the National Oceanic
and Atmospheric Administration, the separation benefits
available to the other uniformed services.
The Senate amendment contained no similar provision.
The Senate recedes.
Discharge of members of the armed forces who have the HIV-1
virus (sec. 567)
The House bill contained a provision (sec. 561) that would
require the Secretary of Defense to separate or retire
service members who are identified as HIV-positive.
The Senate amendment contained no similar provision
The Senate recedes with an amendment that would provide the
discharged member with an entitlement to medical and dental
care within the Military Health Care System, to the same
extent and under the same conditions as a military retiree.
Revision and codification of Military Family Act and Military
Child Care Act (sec. 568)
The House bill contained a provision (sec. 560) that would
codify in title 10, United States Code, updated provisions of
The Military Family Act of 1985 (title VII, Public Law 99-
145), and The Military Child Care Act of 1989 (title XV,
Public Law 101-189), which were instrumental in focusing
Department of Defense attention on the needs of military
families and on the importance of effective child care
programs.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would eliminate a
reporting requirement.
Determination of whereabouts and status of missing persons
(sec. 569)
The House bill contained a provision (sec. 563) that would
require the Secretary of Defense to centralize at the
Department of Defense level, the oversight and policy
responsibility for accounting for missing persons.
The Senate amendment contained a similar provision (sec.
551).
The Senate recedes with an amendment that would clarify and
integrate the two provisions.
The conferees' intention in requiring the creation of the
Office for Missing Persons (section 1501) is that this office
will have a broad range of responsibilities that include
those of all the individual offices that currently have
responsibilities for POW/MIA matters.
The conferees expect that the Secretary of Defense will
organize this new office to serve

[[Page H659]]
as the single focal point in the Department of Defense for POW/MIA
matters and consolidate the formulation and oversight of
search, rescue, escape and evasion and accountability
policies. The conferees further expect that the Secretary of
Defense will make every effort to ensure a close working
relationship with the national intelligence agencies.
In relation to the Special Rule for Persons Classified as
KIA/BNR, the conferees believe that the evidence referred to
in section 1509(c) should be compelling evidence, such as
post-incident letters written by the supposedly-dead person
while in captivity or United States or other archival
evidence that directly contradicts earlier United States
Government determinations.
Associate Director of Central Intelligence for Military
Support (sec. 570)
The Senate amendment contained a provision (sec. 1096) that
would exempt the position of Associate Director of Central
Intelligence for Military Support from counting against the
numbers and percentages of officers authorized to be serving
in the rank and grade of such officer for the armed force of
which such officer is a member when neither the Director for
Central Intelligence or the Deputy Director for Central
Intelligence is a military officer.
The House bill contained no similar provision.
The House recedes.

Subtitle G--Support for Non-Department of Defense Activities

Repeal and revision of certain Civil-Military Programs (secs.
571, 572, 573 and 574)
The House bill contained a provision (sec. 558) that would
repeal the authority for three programs established by the
National Defense Authorization Act for Fiscal Year 1993
(Public Law 102-484): the Civil-Military Cooperative Action
Program; the National Guard Youth Opportunities Program; and
the Pilot Outreach Program to Reduce the Demand for Illegal
Drugs. Additionally, this provision would preclude Department
of Defense support to the Civilian Conservation Corps.
The Senate amendment contained several provisions that
would address Civil-Military Programs as follows: (1)
prohibit the use of funds for the Office of Civil-Military
Programs within the Office of the Assistant Secretary of
Defense for Reserve Affairs (sec. 362); (2) revise section
410 of title 10, United States Code, the Civil-Military
Cooperative Action Program (sec. 363); (3) extend the
authorization for the National Guard Youth Opportunities
Program through Fiscal Year 1997 (sec. 1083); and (4) extend
the duration of the Pilot Outreach Program to Reduce the
Demand for Illegal Drugs for two additional years (sec.
1099A).
The conference agreement includes several provisions (secs.
571, 572, 573, and 574) that would: (1) replace section 410
of title 10, United States Code, with a new section, that
would authorize support and services for certain eligible
organizations and activities outside of the Department of
Defense (sec. 2012); (2) prohibit the use of funds for the
Office of Civil-Military Programs within the Office of the
Assistant Secretary of Defense for Reserve Affairs or for any
other entity within the Office of the Secretary of Defense
that has an exclusive or principal mission of providing
centralized direction for activities under section 572 of
this Act; (3) extend that authorization for the National
Guard Youth Opportunities Program for 18 months from
enactment and limit the number of programs to the number in
effect on September 30, 1995. The Conference Agreement did
not extend the duration of the Pilot Outreach Program to
Reduce Demand for Illegal Drugs.
Regarding the repeal of specific authority for the Civil-
Military Cooperative Program and the absence of an extension
of the Pilot Outreach Program to Reduce the Demand for
Illegal Drugs, the conferees note that the Young Marines, the
Seaborne Conservation Corps, and other programs operated
under Department of Defense and service policy prior to the
October 1992 enactment of the statutory authorities for the
various civil-military programs. The conferees expect that
the Young Marines, the Seaborne Conservation Corps and other
similar programs should be able to continue operations in
accordance with the pre-October 1992 authorities.
The conferees intend that the 18-month extension of the
National Guard Youth Opportunities Program would permit these
programs to develop non-Department of Defense sources of
funding in order to continue operation after the authority in
this extension expires.
Regarding support and services for eligible organizations
and activities outside of the Department of Defense, the
conferees intend that the ``customary community relations and
public affairs activities'', referred to in section
572(b)(1), provide for the use of Department of Defense
resources to support public events, including such activities
as the honor guards, static displays of equipment, bands, and
demonstrations, and rely heavily on volunteer support.
Department of Defense resources should be considered
available for community relations support only after all
military needs have been met. Additionally, the conferees
expect that, concerning the exception to the relationship to
military training, referred to in section 572(d)(2), most
manpower requests for assistance under this exception will be
met by volunteers, and that any assistance other than
manpower will be extremely limited. With respect to such
exception, Government vehicles may be used, but only to
provide transportation of military manpower to and from the
work site. The use of government aircraft in assistance under
this exception is prohibited.

legislative provisions not adopted

Report on feasibility of providing education benefits
protection insurance for service academy and ROTC
scholarship students who become medically unable to serve
The House bill contained a provision (sec. 515) that would
require the Secretary of Defense to conduct a study on the
need and feasibility of establishing a no cost to the
government disability insurance plan for service academy and
Reserve Officers' Training Corps scholarship students.
The Senate amendment contained no similar provision.
The House recedes.
The conferees believe that private insurance companies
could provide the needed coverage without requiring further
study by the Secretary of Defense. Accordingly, the conferees
direct the Secretary to cooperate with private insurers and
to make insurance information available to students in a
manner that the Secretary determines to be essentially
consistent with the way private insurance information is
handled elsewhere within the Department of Defense.
Authority to appoint Brigadier General Charles E. Yeager,
United States Air Force (retired) to the grade of major
general on the retired list
The House bill contained a provision (sec. 562) that would
authorize the President to advance Brigadier General Charles
E. Yeager (retired) to the grade of major general on the
retired list.
The Senate amendment contained no similar provision.
The House recedes.

Title VI--Compensation and Other Personnel Benefits

legislative provisions

legislative provisions adopted

Subtitle A--Pay and Allowances

Military pay raise for fiscal year 1996 (sec. 601)
The House bill contained a provision (sec. 601) that would
provide a 2.4 percent military pay raise for all the
uniformed services, except the National Oceanic and
Atmospheric Administration. Additionally, the provision would
increase by 5.2 percent the rates of the basic allowance for
quarters for members of the uniformed services. These
increases would be effective January 1, 1996.
The Senate amendment contained a similar provision that
would apply to all uniformed services (sec. 601).
The House recedes with an amendment.
The conferees note that the President issued an Executive
Order on December 28, 1995 to provide a 2.0 percent pay raise
to military personnel under section 1009, title 10, United
States Code to correspond with an increase in federal
civilian pay effective January 1, 1996. Consequently, the
conferees agree to amend the original provision to rescind
the Executive Order and provide authority for an increase of
2.4 percent in the rates of military basic pay and basic
allowance for subsistence and 5.2 percent in the basic
allowance for quarters retroactively to January 1, 1996.
Limitation on basic allowance for subsistence for members
residing without dependents in government quarters (sec.
602)
The House bill contained a provision (sec. 602) that would
require the secretaries of the military departments to allow
no more than 12 percent of the service members without
dependents who reside in government quarters to receive basic
allowance for subsistence (BAS). The provision would also
require the Secretary of Defense to submit a report to
confirm the current number of service members in this
category and to establish a standard for the appropriate
percentage of personnel who are eligible to receive BAS.
The Senate amendment contained no similar provision.
The Senate recedes.
Election of basic allowance for quarters instead of
assignment to inadequate quarters (sec. 603)
The Senate amendment contained a provision (sec. 602) that
would authorize payment of the basic allowance for quarters
(BAQ) and variable housing allowance (VHA) (and overseas
housing allowance (OHA) if assigned overseas) to single
members in the paygrade E-6 and above who have been assigned
to quarters that do not meet minimum adequacy standards
established by the Department of Defense.
The House bill contained no similar provision.
The House recedes.
Payment of basic allowance for quarters to members in pay
grade E-6 who are assigned to sea duty (sec. 604)
The House bill contained a provision (sec. 603) that would
authorize payment of basic allowance for quarters and
variable housing allowance to single E-6 personnel assigned
to shipboard sea duty.
The Senate amendment contained a similar provision (sec.
603).
The conference agreement includes this provision.
Limitation on reduction of variable housing allowance for
certain members (sec. 605)
The House bill contained a provision (sec. 604) that would
authorize the Secretary of

[[Page H660]]
Defense to establish a minimum amount of variable housing allowance
(VHA) to meet the cost of adequate housing in high cost
areas. The provision would also prevent the reduction of the
amount of VHA paid to an individual, as long as the member
retains uninterrupted eligibility to receive VHA in the
housing area and the member's housing costs are not reduced.
The Senate amendment contained a provision (sec. 604) that
would prevent reduction of the amount of variable housing
allowance (VHA) paid to an individual, as long as the service
member retains uninterrupted eligibility to receive VHA in
the housing area and the service member's housing costs are
not reduced.
The House recedes with a technical amendment.
The conferees believe that, if the current mechanism for
determining VHA rates is inadequate, the Secretary of Defense
should notify the Committee on Armed Services of the Senate
and the Committee on National Security of the House. Such
notification should include a recommended solution and all
appropriate justification.
Clarification of limitation on eligibility for Family
Separation Allowance (sec. 606)
The House bill contained a provision (sec. 605) that would
authorize the payment of family separation allowance to
service members on board a ship that is away from homeport,
even though the service member elected to remain
unaccompanied by dependents at the permanent duty station.
The Senate amendment contained a similar provision (sec.
605) that also authorized payment of family separation
allowance when members are on temporary duty away from
permanent duty station.
The House recedes.

Subtitle B--Bonuses and Special and Incentive Pays

Extension of certain bonuses for reserve forces (sec. 611)
The House bill contained a provision (sec. 611) that would
extend until September 30, 1998 the authority for the
selected reserve reenlistment bonus, the selected reserve
enlistment bonus, the selected reserve affiliation bonus, the
ready reserve enlistment and reenlistment bonus, and the
prior service enlistment bonus.
The Senate amendment contained a similar provision (sec.
611) that would provide for extensions to September 30, 1997.
The House recedes.
Extension of certain bonuses and special pay for nurse
officer candidates, registered nurses, and nurse
anesthetists (sec. 612)
The House bill contained a provision (sec. 612) that would
extend until September 30, 1998 the authority for the nurse
officer candidate accession program, the accession bonus for
registered nurses, and the incentive special pay for nurse
anesthetists.
The Senate amendment contained a similar provision (sec.
612) that would provide for extensions to September 30, 1997.
The House recedes.
Extension of authority relating to payment of other bonuses
and special pays (sec. 613)
The House bill contained a provision (sec. 613) that would
extend until September 30, 1998 the authority for the
aviation officer retention bonus, the reenlistment bonus for
active members, enlistment bonuses for critical skills,
special pay for enlisted members of the selected reserve
assigned to certain high-priority units, special pay for
nuclear-qualified officers extending the period of active
service, and the nuclear career accession bonus. The
provision would also extend the authority for repayment of
education loans for certain health professionals who serve in
the selected reserve and the nuclear career annual incentive
bonus to October 1, 1998.
The Senate amendment contained a similar provision (sec.
613) that would provide for extensions to September 30 and
October 1, 1997.
The House recedes with a clarifying amendment.
Codification and extension of special pay for critically
short wartime health specialists in the selected reserves
(sec. 614)
The House bill contained a provision (sec. 614) that would
amend title 37, United States Code, to include authorization
of special pay for critically short wartime health
specialists in the selected reserves and extend the authority
for the special pay to September 30, 1998.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment to limit the extension
of authority to September 30, 1997.
Hazardous duty incentive pay for warrant officers and
enlisted members serving as air weapons controllers (sec.
615)
The Senate amendment contained a provision (sec. 614) that
would authorize special hazardous duty incentive pay for
enlisted members serving as air weapons controllers aboard
airborne warning and control systems.
The House bill contained no similar provision.
The House recedes.
Aviation career incentive pay (sec. 616)
The House bill contained a provision (sec. 615) that would
reduce the initial operational flying requirement for
Aviation Career Incentive Pay from 9 of the first 12 years to
8 of the first 12 years of aviation service.
The Senate amendment contained a similar provision (sec.
615) that would also restrict to the service secretary the
authority to grant waivers of the number of years.
The House recedes.
Clarification of authority to provide special pay for nurses
(sec. 617)
The Senate amendment contained a provision (sec. 616) that
would add military nurses to the list of health care
professionals who are eligible to receive a special pay for
being board certified in their specialty.
The House bill contained no similar provision.
The House recedes.
Continuous entitlement to career sea pay for crew members of
ships designated as tenders (sec. 618)
The House bill contained a provision (sec. 616) that would
authorize personnel assigned to tenders to receive career sea
pay.
The Senate amendment contained a similar provision (sec.
617).
The conference agreement includes this provision.
Increase in maximum rate of special duty assignment pay for
enlisted members serving as recruiters (sec. 619)
The House bill contained a provision (sec. 617) that would
authorize payment of a maximum monthly rate of $375 of
additional special duty assignment pay to recruiters.
The Senate amendment contained an identical provision (sec.
618).
The conference agreement includes this provision.

Subtitle C--Travel and Transportation Allowances

Repeal of requirement regarding calculation of allowances on
basis of mileage tables (sec. 621)
The Senate amendment contained a provision (sec. 621) that
would amend section 104(d)(1)(A) of title 37, United States
Code, to repeal the requirement that travel mileage tables be
prepared under the direction of the Secretary of Defense.
The House bill contained no similar provision.
The House recedes.
Departure allowances (sec. 622)
The Senate amendment contained a provision (sec. 622) that
would equalize evacuation allowances to ensure equitable
treatment of military dependents, civilians and their
dependents, when officially authorized or ordered to evacuate
an overseas area.
The House bill contained no similar provision.
The House recedes.
Transportation of nondependent child from member's station
overseas after loss of dependent status while overseas
(sec. 623)
The House bill contained a provision (sec. 621) that would
authorize dependent children, who lose eligibility as
dependents for any reason while overseas, to return to the
United States one time at government expense prior to the
sponsor receiving permanent-change-of-station orders.
The Senate amendment contained a similar provision (sec.
624).
The conference agreement includes this provision.
Authorization of dislocation allowance for moves in
connection with base realignments and closures (sec. 624)
The House bill contained a provision (sec. 622) that would
authorize the payment of dislocation allowance for service
members directed to move as a result of the closure or
realignment of an installation.
The Senate amendment contained a similar provision (sec.
623).
The conference agreement includes this provision.

Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Effective date for military retiree cost-of-living
adjustments for fiscal years 1996, 1997 and 1998 (sec.
631)
The House bill contained a provision (sec. 633) that would
conform the military retired pay cost-of-living adjustment
(COLA) payment date with the payment date established for
Federal civilian retirees by making the military retired pay
COLA first payable during March 1996, rather than September
1996.
The Senate amendment contained a provision (sec. 641) that
would provide that the 1996 military retired pay cost-of-
living adjustment be effective the first day of March 1996.
In subsequent years, the cost-of-living adjustment would be
effective the first day of December of each year.
The House recedes with an amendment that would provide that
the military retired pay COLAs for fiscal years 1996 and 1997
be effective the first day of March, 1996, and the first day
of December, 1996, respectively. The provision would also
require that the effective date for COLAs during fiscal year
1998 conform to the date prescribed for Federal civilian
retirees.
The conferees acknowledge that restoring equity to the
payment of COLAs to military retirees has been a priority
concern since passage of the Omnibus Budget Reconciliation
Act of 1993 which caused military retirees to receive their
COLAs later than their civilian counterparts. The solution
specified in this provision is a welcome end to the inequity
between the two groups of retirees.
Denial of non-regular service retired pay for reserves
receiving certain court-martial sentences (sec. 632)
The Senate amendment contained a provision (sec. 642) that
would authorize the Secretaries of the military departments
to deny

[[Page H661]]
retired pay to non-regular service members who are convicted of an
offense under the Uniform Code of Military Justice and whose
sentence includes death, a dishonorable discharge, a bad
conduct discharge, or dismissal. The provision would treat
both regular and non-regular service members equitably.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Report on payment of annuities for certain military surviving
spouses (sec. 633)
The Senate amendment contained a provision (sec. 648) that
would require the Secretary of Defense to determine the
number of surviving spouses of retired careerists who died
before March 21, 1974 and retired pay eligible reserve
retirees under age 60 who died before September 30, 1978, and
report to the Senate Committee on Armed Services and the
House Committee on National Security. These groups of
surviving spouses have become known as ``Forgotten Widows''
since they were widowed before provisions of the Survivor
Benefit Plan were applicable to them.
The House bill contained no similar provision.
The House recedes.
Payment of back quarters and subsistence allowances to World
War II veterans who served as guerrilla fighters in the
Philippines (sec. 634)
The conference agreement includes a provision that would
require the service secretaries, on request, to pay the
quarters and subsistence allowance that was not paid to
certain guerrilla fighters in the Philippines during World
War II.
Authority for relief from previous overpayments under minimum
income widows program (sec. 635)
The conference agreement includes a provision that would
permit the Secretary of Defense to waive the recovery of any
overpayment made before enactment of the conference report
and that is attributable to a failure by the Department of
Defense to apply eligibility requirements correctly.
The conferees expect the Secretary of Defense to direct the
Defense Finance and Accounting Service to stop sending
collection letters to widows expected to be covered under
this provision.
Transitional compensation for dependents of members of the
armed forces separated for dependent abuse (sec. 636)
The House bill contained a provision (sec. 556) that would
require the Secretary of Defense to retroactively provide
compensation to certain eligible dependents inadvertently
excluded from the program.
The Senate amendment contained a provision (sec. 649) that
would amend section 1059(d) of title 10, United States Code,
to include transitional compensation for dependents whose
sponsor forfeited all pay and allowances, but was not
separated from the service.
The Senate recedes with a clarifying amendment.

Subtitle E--Other Matters

Payment to survivors of deceased members for all leave
accrued (sec. 641)
The Senate amendment contained a provision (sec. 647) that
would permit survivors of deceased members of the uniformed
services to be paid for all leave accrued. This provision
will enable survivors to be paid for leave accrued above the
60 day limit.
The House bill contained no similar provision.
The House recedes.
Repeal of reporting requirements regarding compensation
matters (sec. 642)
The House bill contained a provision (sec. 631) that would
eliminate a report on dependents accompanying members on
assignments to overseas locations and simplify the
requirement for the President to submit to the Congress
recommendations on military pay matters.
The Senate amendment contained a similar provision (sec.
1072(d)).
The Senate recedes with an amendment that would combine the
two provisions.
Recoupment of administrative expenses in garnishment actions
(sec. 643)
The Senate amendment contained a provision (sec. 643) that
would amend section 5502 of title 5, United States Code, to
shift the burden for payment of administrative costs,
incurred incident to garnishment actions, from the employee
to the creditor.
The House bill contained no similar provision.
The House recedes.
Report on extending to junior noncommissioned officers
privileges provided for senior noncommissioned officers
(sec. 644)
The Senate amendment contained a provision (sec. 646) that
would require the Secretary of Defense to study and report to
the Congress on methods of improving the working conditions
of noncommissioned officers in pay grades E-5 and E-6. This
report, and the accompanying legislative recommendations,
should provide the committee a road map to continue quality
of life improvements.
The House bill contained no similar provision.
The House recedes.
Study regarding joint process for determining location of
recruiting stations (sec. 645)
The House bill contained a provision (sec. 632) that would
require the Secretary of Defense to conduct a study of the
process for determining the location and manning of
recruiting stations. The study would be based on market
research and analysis conducted jointly by the military
departments.
The Senate amendment contained no similar provision.
The Senate recedes.
Automatic maximum coverage under Servicemen's Group Life
Insurance (sec. 646)
The Senate amendment contained a provision (sec. 644) that
would automatically enroll service members at the maximum
insurance level of $200,000, instead of the $100,000 level
currently in law.
The House bill contained no similar provision.
The House recedes with an amendment that would delay
implementation until April 1, 1996.
Termination of servicemen's group life insurance for members
of the Ready Reserve who fail to pay premiums (sec. 647)
The Senate amendment contained a provision (sec. 645) that
would authorize the Secretary of Defense to terminate
coverage under the Servicemen's Group Life Insurance for
members of the ready reserve who fail to make premium
payments for 120 days.
The House bill contained no similar provision.
The House recedes with an amendment that would delay
implementation until April 1, 1996.

legislative provisions not adopted

Repeal of prohibition on payment of lodging expenses when
adequate Government quarters are available
The House bill contained a provision (sec. 623) that would
repeal the prohibition on payment of lodging expenses when
adequate government quarters are available.
The Senate amendment contained no similar provision.
The House recedes.

Title VII--Health Care Provisions

items of special interest

Follow-on medical care for certain members of former members
of the Armed Forces and their dependents
The conferees note that some service members, as a result
of receiving transfusions at military hospitals were placed
at risk of contracting a serious communicable disease and
subsequently transmitting it to their dependents.
The case of Douglas Simon of Eden Prairie, Minnesota, and
his family, is an example of the very tragic situation that
can arise following a transfusion of contaminated blood. In
1983, while serving in the Army National Guard, Mr. Simon was
infected with the AIDS virus after undergoing a blood
transfusion at Fort Benning, Georgia. Subsequently, he
unknowingly transmitted the virus to his spouse, Nancy, who
in turn, transmitted the virus to their daughter Candace.
Candace became ill and died of AIDS in 1993 at the age of
five. Both Mr. and Mrs. Simon are now in the terminal stages
of AIDS and their two remaining children Brian, 11, and Eric,
9, will be orphaned. To date, the Department of Defense has
not accepted any financial responsibility for the treatment
of Mr. or Mrs. Simon, or the future of the two children. The
conferees direct the Secretary of Defense to review the
Department's role in this case and to determine whether the
Department of Defense should provide fair compensation to
these and other similarly affected persons.

legislative provisions

Legislative provisions adopted

Subtitle A--Health Care Services

Modifications of requirements regarding routine physical
examinations and immunizations under CHAMPUS (sec. 701)
The House bill contained a provision (sec. 701) that would
amend section 1079(a) of title 10, United States Code, by
expanding ``well-baby visits'' and immunizations to
dependents under the age of six, by authorizing immunizations
at age six and above and by adding coverage of health
promotion and disease prevention visits associated with
immunizations, pap smears and mammograms.
The Senate amendment contained a similar provision (sec.
703).
The conference agreement includes this provision.
Correction of inequities in medical and dental care and death
and disability benefits for certain reservists (sec. 702)
The House bill contained a provision (sec. 702) that would
authorize reservists the same death and disability benefits
as active duty members, during off-duty periods between
successive inactive duty training periods performed at
locations outside the reasonable commuting distance from the
member's residence.
The Senate amendment contained no similar provision.
The Senate recedes.
Medical care for surviving dependents of retired Reserves who
die before age 60 (sec. 703)
The Senate amendment contained a provision (sec. 701) that
would permit survivors of ``gray area'' retirees, members of
the retired reserve who have not attained the age of 60
years, to receive medical care as if the sponsor had attained
60 years of age and was receiving retirement benefits.
The House bill contained no similar provision.

[[Page H662]]

The House recedes.
Medical and dental care for members of the Selected Reserve
assigned to early deploying units of the Army Selected
Reserve (sec. 704) and dental insurance for members of
the Selected Reserve (sec. 705)
The House bill contained a provision (sec. 703) that would
require the Secretary of the Army to provide medical and
dental screenings, physical exams for members over 40, and
the dental care required to meet dental readiness standards
for units scheduled for deployment within 75 days of
mobilization.
The provision would also require the Secretary of Defense
to conduct a demonstration program to offer members of the
selected reserve dental readiness insurance on a voluntary
basis, at no cost to the Department of Defense.
The Senate amendment contained a provision (sec. 702) that
would require the Secretary of Defense to establish a dental
insurance plan for members of the selected reserve. The
provision would require a plan, similar to the active duty
dependent dental insurance plan, with voluntary enrollment
and premium sharing by the member.
The House recedes with two amendments. One requires the
Secretary of Defense to establish a dental insurance plan for
members of the selected reserve in fiscal year 1997. The
amendment also provides authority for the Secretary to
conduct the necessary surveys, preparation work, and a test
of the plan in fiscal year 1996. The other amendment requires
the Secretary of the Army to provide medical and dental care
to members of early deploying units of the selective reserve.
Permanent authority to carry out Specialized Treatment
Facility Program (sec. 706)
The Senate amendment contained a provision (sec. 704) that
would amend section 1105 of title 10, United States Code, by
repealing subsection (h), the sunset provision, to make the
Specialized Treatment Facility Program permanent.
The House bill contained no similar provision.
The House recedes.

Subtitle B--TRICARE Program

Definition of TRICARE Program (sec. 711)
The Senate amendment contained a provision (sec. 711) that
would define the TRICARE program and other terms of art in
the statute.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Priority use of military treatment facilities for persons
enrolled in managed care initiatives (sec. 712)
The House bill contained a provision (sec. 711) that would
amend title 10, United States Code, to require the Secretary
of Defense, as an incentive for enrollment, to establish
reasonable priorities for services provided at military
treatment facilities for TRICARE-enrolled beneficiaries.
The Senate amendment contained no similar provision.
The Senate recedes.
Staggered payment of enrollment fees for TRICARE program
(sec. 713)
The House bill contained a provision (sec. 712) that would
amend section 1097(e) of title 10, United States Code, to
require the Secretary of Defense to allow beneficiaries to
pay any required enrollment fees on a monthly or quarterly
basis, at no additional cost to the beneficiary.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment limiting the payments
to a quarterly basis.
The conferees direct the Secretary of Defense to establish
procedures for retired service members to pay enrollment fees
by allotment.
Requirement of budget neutrality for TRICARE program to be
based on entire program (sec. 714)
The House bill contained a provision (sec. 713) that would
clarify the requirement for the TRICARE HMO option to be
budget neutral by requiring that the combined effect of all
three TRICARE options be budget neutral.
The Senate amendment contained no similar provision.
The Senate recedes.
Training in health care management and administration for
TRICARE lead agents (sec. 715)
The House bill contained a provision (sec. 714) that would
direct the Secretary of Defense to ensure that military
medical treatment facility commanders, selected to serve as
lead agents for the Department's managed health-care program,
TRICARE, receive appropriate training in health-care
management and administration.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would add key
subordinates to the training requirement.
Pilot program of individualized residential mental health
services (sec. 716)
The House bill contained a provision (sec. 746) that would
direct the Secretary of Defense to study the feasibility of
expanding mental health services to include ``wraparound''
services, and to include the requirement that providers share
financial risk through case-rate reimbursement, and then to
report the results of the study to Congress by March 1, 1996.
The Senate amendment contained a provision (sec. 714) that
would direct the Secretary of Defense to implement a program
of residential treatment for seriously emotionally disturbed
and complex-needs adolescents. This treatment would
incorporate the concept of ``wraparound services'' in one
TRICARE region. The Secretary would be required to report on
the evaluation of this program not later than eighteen months
after the program is implemented.
The House recedes with a clarifying amendment.
Evaluation and report on TRICARE program effectiveness (sec.
717)
The House bill contained a provision (sec. 715) that would
require the Secretary of Defense to obtain an ongoing
independent evaluation of the TRICARE program and to provide
an annual report to Congress on the results of the
evaluation. The evaluation should report on efforts to make
TRICARE Prime, the HMO option, available in non-catchment and
rural areas.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.
Sense of Congress regarding access to health care under
TRICARE program for covered beneficiaries who are
Medicare eligible (sec. 718)
The Senate amendment contained a provision (sec. 713) that
would express the sense of the Senate that the Secretary of
Defense should develop a program to ensure that covered
beneficiaries who are eligible for Medicare and who reside in
a region in which TRICARE has been implemented have access to
health care services under TRICARE and that the Department of
Defense be reimbursed for those services.
The house bill contained no similar provision.
The House recedes with an amendment that makes the
provision a sense of Congress.

Subtitle C--Uniformed Services Treatment Facilities

Delay of termination of status of certain facilities as
Uniformed Services Treatment Facilities (sec. 721)
The Senate amendment contained a provision (sec. 721) that
would extend until September 30, 1997, the designation of
Uniformed Services Treatment Facilities (USTF) as military
treatment facilities (MTF).
The House bill amendment contained no similar provision.
The House recedes.
Limitation on expenditures to support Uniformed Services
Treatment Facilities (sec. 722)
The House bill contained a provision (sec. 721) that would
amend the National Defense Authorization Act for Fiscal Year
1984 (Public Law 98-94) to limit the amount authorized to
$300.0 million for the Department of Defense Uniformed
Services Treatment Facilities (USTFs) managed care plan. This
section would limit beneficiary enrollment in the USTF
program to the number enrolled as of September 30, 1995.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would eliminate
the limit on the number of enrollees.
Application of CHAMPUS payment rules in certain cases (sec.
723)
The Senate amendment contained a provision (sec. 723) that
would amend section 1074 of title 10, United States Code, to
include the Uniformed Services Treatment Facilities (USTF) in
the authority under which a USTF could be reimbursed for care
provided to a Department of Defense eligible enrollee who
receives care out of the local area of the USTF in which they
are enrolled.
The House bill contained no similar provision.
The House recedes.
Application of federal acquisition regulation to
participation agreements with Uniformed Services
Treatment Facilities (sec. 724)
The House bill contained a provision (sec. 722) that would
amend the National Defense Authorization Act for Fiscal Year
1991 (Public Law 101-510) by repealing the Federal
Acquisition Regulation (FAR) exemption granted to the
Uniformed Services Treatment Facilities (USTFs).
The Senate amendment contained a similar provision (sec.
722).
The Senate recedes.
Development of plan for integrating Uniformed Services
Treatment Facilities in managed care programs of
Department of Defense (sec. 725)
The House bill contained a provision (sec. 723) that would
amend section 718(c) of the National Defense Authorization
Act for Fiscal Year 1991 (Public Law 101-510) to require the
Secretary of Defense to submit to Congress a plan under which
the 10 Uniformed Services Treatment Facilities (USTFs) would
be integrated into the Department of Defense's managed
health-care program by September 30, 1997. In addition, this
section would require the Secretary to assess the feasibility
of implementing a modified version of USTF option II.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.

[[Page H663]]

Equitable implementation of uniform cost sharing requirements
for Uniformed Services Treatment Facilities (sec. 726)
The House bill contained a provision (sec. 724) that would
direct the Secretary of Defense to apply uniform cost shares
to each of the 10 Uniformed Services Treatment Facilities
(USTFs) only upon regional implementation of the TRICARE
managed health care program in the USTF's service area. It
would also direct the GAO to evaluate the effect of TRICARE
cost shares on USTFs.
The Senate amendment contained a provision (sec. 712) that
would require the Uniformed Services Treatment Facilities to
implement the TRICARE uniform benefit concurrent with the
implementation of TRICARE in that region. The recommended
provision would exempt a covered beneficiary who has been
continuously enrolled on and after January 1, 1995.
The Senate recedes with a technical amendment.
Elimination of unnecessary annual reporting requirements
regarding Uniformed Services Treatment Facilities (sec.
727)
The House bill contained a provision (sec. 736) that would
eliminate unnecessary annual reporting requirements regarding
military health care.
The Senate amendment contained no similar provision.
The Senate recedes.

Subtitle D--Other Changes to Existing Laws Regarding Health Care
Management

Maximum allowable payments to individual health-care
providers under CHAMPUS (sec. 731)
The House bill contained a provision (sec. 731) that would
amend title 10, United States Code, to codify a provision of
the Department of Defense Appropriations Act for Fiscal Year
1995 (Public Law 103-335) that establishes a process for
gradually reducing CHAMPUS maximum payment amounts to those
limits for similar services under Medicare.
The Senate amendment contained a similar provision (sec.
732).
The conference agreement includes this provision.
Notification of certain CHAMPUS covered beneficiaries of loss
of CHAMPUS eligibility (sec. 732)
The House bill contained a provision (sec. 743) that would
direct the administering secretaries to develop a mechanism
for notifying beneficiaries of their ineligibility for
CHAMPUS health benefits when the loss of CHAMPUS eligibility
is due to disability status.
The Senate amendment contained no similar provision.
The Senate recedes.
Personal services contracts for medical treatment facilities
of the Coast Guard (sec. 733)
The Senate amendment contained a provision (sec. 733) that
would authorize the Secretary of Transportation to use the
personal services contract authority, currently available to
the Secretary of Defense, to contract for health care
providers in support of the Coast Guard.
The House bill contained no similar provision.
The House recedes.
Identification of third-party payer situations (sec. 734)
The House bill contained a provision (sec. 733) that would
authorize the Secretary of Defense to prescribe regulations
for the collection of information from covered beneficiaries
regarding insurance, medical service, or health plans of
third-party payers.
The Senate amendment contained no similar provision.
The Senate recedes.
Redesignation of Military Health Care Account as Defense
Health Program Account and two-year availability of
certain account funds (sec. 735)
The House bill contained a provision (sec. 734) that would
amend section 1100 of title 10, United States Code, to allow
the Secretary of Defense to carry over three percent of the
defense health plan annual operation and maintenance
appropriations to the end of the next fiscal year.
The Senate amendment contained a similar provision (sec.
731).
The conference agreement includes this provision.
Expansion of financial assistance program for health care
professionals in reserve components, to include dental
specialties (sec. 736)
The House bill contained a provision (sec. 735) that would
authorize financial assistance for qualified dentists engaged
in training for a dental specialty which is critically needed
in wartime.
The Senate amendment contained a similar provision (sec.
512).
The conference agreement includes this provision.
Applicability of limitation on prices of pharmaceuticals
procured for Coast Guard (sec. 737)
The Senate amendment contained in provision (sec. 743) that
would include the Coast Guard in the pharmaceutical purchase
program administered by the Department of Veterans Affairs.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Expansion of existing restriction on use of defense funds for
abortions (sec. 738)
The House bill contained a provision (sec. 732) that would
amend section 1093 of title 10, United States Code, to
restrict the Department of Defense (DOD) from using medical
treatment facilities or other DOD facilities, as well as DOD
funds, to perform abortions, unless necessary to save the
life of the mother.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would prohibit
the use of Department of Defense facilities to perform
abortions except in cases where the pregnancy is the result
of rape or incest or in cases when the life of the mother is
endangered. The amendment would retain the prohibition on the
use of Department of Defense funds for abortions except in
cases when the life of the mother in endangered.

Subtitle E--Other Matters

Tri-service nursing research (sec. 741)
The Senate amendment contained a provision (sec. 741) that
would authorize establishment of a tri-service research
program at the Uniformed Services University of the Health
Sciences.
The House bill contained no similar provision.
The House recedes.
Termination of program to train military psychologists to
prescribe psychotropic medications (sec. 742)
The House bill contained a provision (sec. 741) that would
direct the Department of Defense to terminate the pilot
demonstration program and to withdraw the authority to
prescribe psychotropic drugs from psychologists who
participated in the demonstration program.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would prohibit
any new enrollments, permit current students to complete the
training, and require a General Accounting Office evaluation
of the program.
Waiver of collection of payments due from certain persons
unaware of loss of CHAMPUS eligibility (sec. 743)
The House bill contained a provision (sec. 742) that would
authorize the Secretaries of Defense, Transportation and
Health and Human Services to waive the collection of certain
payments described for beneficiaries of the Civilian Health
and Medical Program of the Uniformed Services (CHAMPUS). This
waiver would apply to CHAMPUS beneficiaries who lost their
CHAMPUS eligibility prior to Medicare entitlement because of
a disability or end-stage renal disease.
The Senate amendment contained no similar provision.
The Senate recedes.
Demonstration program to train military medical personnel in
civilian shock trauma units (sec. 744)
The House bill contained a provision (sec. 744) that would
require the Secretary of Defense to conduct a demonstration
program, through arrangements with civilian hospitals, to
evaluate the feasibility of providing additional shock trauma
training for military medical personnel.
The Senate amendment contained no similar provision.
The Senate recedes.
The conferees expect the Secretary of Defense to ensure
that the program would be budget neutral and that the
Department would receive compensation, payment in kind, or
services of equivalent value to the government costs for
providing services to the non-DOD agencies. The conferees
further direct the Comptroller General to evaluate the costs
and value of services or reimbursements to the government.
Study regarding Department of Defense efforts to determine
appropriate force levels of wartime medical personnel
(sec. 745)
The House bill contained a provision (sec. 745) that would
direct the Comptroller General of the United States to
evaluate the effectiveness of the modeling efforts of each of
the three service surgeons general related to determination
of the appropriate wartime military medical force-level
requirements, and then to submit to Congress a report on this
evaluation, not later than March 1, 1996.
The Senate amendment contained no similar provision.
The Senate recedes.
Report on improved access to military health care for covered
beneficiaries entitled to Medicare (sec. 746)
The House bill contained a provision (sec. 747) that would
require the Secretary of Defense to report on possible
alternatives to improving access to the military health care
system for those beneficiaries who are Medicare eligible and
ineligible for the Civilian Health and Medical Program of the
Uniformed Services (CHAMPUS).
The Senate amendment contained no similar provision.
The Senate recedes.
Report on effect of closure of Fitzsimons Army Medical
Center, Colorado, on provision of care to military
personnel, retired military personnel, and their
dependents (sec. 747)
The Senate amendment contained a provision (sec. 744) that
would require the Secretary of Defense to report to the
Congress on the effect of the closure of Fitzsimons Army
Medical Center, Colorado, on the capability of the Department
of Defense to provide health care for members and former
members of the armed services, and their dependents who
suffer from undiagnosed illness

[[Page H664]]
as a result of service in the Persian Gulf War.
The House bill contained no similar provision.
The House recedes with an amendment that would expand the
requirement to include a report on the effect of the closure
of Fitzsimons Army Medical Center on the capability of the
Department of Defense to provide health care for all military
members, retired military personnel, and their dependents.
Sense of Congress on continuity of health care services for
covered beneficiaries adversely affected by closures of
military medical treatment facilities (sec. 748)
The House bill contained a provision (sec. 748) that would
express the sense of Congress that the Secretary of Defense
should take all appropriate steps to ensure the continuation
of medical and pharmaceutical benefits for covered
beneficiaries adversely affected by the closure of military
facilities.
The Senate amendment contained no similar provision.
The Senate recedes.
State recognition of military advance medical directives
(sec. 749)
The House bill contained a provision (sec. 555) that would
ensure advanced medical directives, prepared by members of
the armed forces, their spouses, or other persons eligible
for legal assistance, are recognized as valid by all states
and possessions of the United States.
The Senate amendment contained a similar provision (sec.
1092).
The Senate recedes with a clarifying amendment.

legislative provisions not adopted

Waiver of Medicare Part B late enrollment penalty and
establishment of special enrollment period for certain
military retirees and dependents
The Senate amendment contained a provision (sec. 705) that
would amend the Social Security Act to authorize a waiver of
the penalty for late enrollment in Medicare Part B for
Medicare-eligible Department of Defense beneficiaries who
reside in geographic areas affected by the closure of
military hospitals under the Base Realignment and Closure
process.
The House bill contained no similar provision.
The Senate recedes.
Disclosure of information in Medicare and Medicaid coverage
data bank to improve collection from responsible parties
for health care services furnished under CHAMPUS
The Senate amendment contained a provision (sec. 734) that
would amend section 1144 of the Social Security Act to extend
to the Department of Defense access to information in the
data bank to enhance the effectiveness of the Department of
Defense third party collection program.
The House bill contained no similar provision.
The Senate recedes.

Title VIII--Acquisition Policy, Acquisition Management, and Related
Matters

items of special interest

Ship repair contracts
The conferees are concerned with continued reports that
Navy ship repair contractors are not being paid by the prime
contractor in a timely manner. The House report accompanying
H.R. 1530 (H. Rept. 104-131) addressed this issue by asking
the Navy to pursue remedies necessary to ensure that the
subcontractor community will be able to support the United
States Navy fleet properly. The conferees support this
language and urge the Navy to monitor this problem carefully
and explore available remedies to ensure that Navy ship
repair subcontractors are properly and promptly compensated
for their services.
The conferees are similarly concerned with the Navy's
practice of bundling ship repair contracts that include only
a small number of drydocking requirements within several ship
repair availabilities. The conferees are concerned that this
may unnecessarily preclude competition for repair work that
does not require a drydock. The conferees believe that if the
Navy continues to bundle multi-year ship repair contracts
that would in part require the use of a drydock, the Navy
should give strong consideration to making available, at a
reasonable cost, a public drydock, to ensure adequate
competition.
Worker's compensation coverage on overseas contracts
The conferees agree with the requirement contained in the
Senate report (S. Rept. 104-112) that would direct the
Secretary of Defense to review the efforts of the State
Department and the Agency for International Development to
consolidate worker's compensation insurance coverage on
overseas contracts. The conferees note that chapter 12 of
title 42, United States Code, mandates that all United States
citizens and legal permanent residents, employed for any
duration by a defense contractor, be covered by uniform
worker's compensation insurance.

legislative provisions

Legislative Provisions Adopted

Subtitle A--Acquisition Reform

Limitation on expenditure of appropriations (sec. 801)
The House bill contained a provision (sec. 821(b)) that
would repeal section 2207 of title 10, United States Code.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would apply
section 2207 of title 10, United States Code, solely to
contracts valued above the simplified acquisition threshold.
Delegation authority (sec. 802)
The Senate amendment contained a provision (sec. 806) that
would repeal section 2356 of title 10, United States Code,
which unnessarily duplicates inherent authority of the
Secretary of Defense to delegate research contracting
authorities.
The House bill contained an identical provision.
The conference agreement includes this provision.
Critical spare parts (sec. 803)
The House bill contained a provision (sec. 821(d)) that
would repeal section 2383 of title 10, United States Code,
regarding quality requirements for critical spare parts of
ships or aircraft. The provision was intended to assist the
Department of Defense in shifting from reliance on outdated
military specifications and standards to the use of modern
industrial manufacturing methods that would ensure quality in
critical spare parts.
The Senate amendment contained an identical provision (sec.
809).
The conference agreement includes this provision.
Fees for certain testing services (sec. 804)
The House bill contained a provision (sec. 822) that would
provide flexibility for the Secretary of Defense to require
reimbursement of indirect, as well as direct costs, from
private sector uses of Department of Defense testing
facilities.
The Senate amendment contained an identical provision (sec.
812).
The conference agreement includes this provision.
Coordination and communication of defense research activities
(sec. 805)
The House bill contained a provision (sec. 824) that would
amend section 2364 of title 10, United States Code, to
require that papers prepared by a defense research facility
on a technological issue relating to a major weapon system be
available for consideration at all decision reviews.
The Senate amendment contained an identical provision (sec.
807).
The conference agreement includes this provision.
Addition of certain items to domestic source limitation (sec.
806)
The House bill contained a provision (sec. 825) that would
add certain named vessel components to domestic source
limitations, as provided in section 2534(a) of title 10,
United States Code. The provision would also extend, through
October 1, 2000, current limitations related to anti-friction
bearings and would require that these limitations be
applicable to contracts and subcontracts below the simplified
acquisition threshold, as well as for commercial
subcontracts.
The Senate contained no similar provision.
The Senate recedes with an amendment that would modify the
list of vessel components to be added to the domestic source
limitations in section 2534 of title 10, United States Code.
The provision includes language that would restrict the
application of the domestic source limitations to the
additional vessel components for contracts entered into after
March 31, 1996.
The conferees have included language that would require,
for a two-year period beginning on the date of enactment of
this Act, a similar limitation on the purchase of propellers
with a diameter of six feet or more. The conferees direct the
Secretary of the Navy to provide the congressional defense
committees by March 1, 1996 with an assessment of the impact
on the Navy's ability to maintain and modernize the fleet,
and address the impact of the limitation on the purchase of
and the castings for such propellers. The conferees also
remain concerned over the pressing need to sustain a robust
ship propeller repair and maintenance commercial base.
Therefore, the conferees strongly urge the Navy to take this
critical objective fully into account in allocating propeller
repair work in the future.
Encouragement of use of leasing authority for commercial
vehicles (sec. 807)
The House bill contained a provision (sec. 827) that would
direct the Secretary of Defense to use lease agreements for
acquisition of equipment, whenever practicable and otherwise
authorized by law. The House provision would also direct the
Secretary to submit to Congress, within 90 days after
enactment of this bill, a report indicating changes in
legislation required to facilitate the Department of Defense
use of leases for the acquisition of equipment.
The Senate amendment contained a provision (sec. 392),
similar to the House provision, that would also provide
authority for the Secretary of Defense to conduct a pilot
program for lease of commercial utility cargo vehicles under
certain prescribed conditions.
The House recedes with a clarifying amendment.
Cost reimbursement rules for indirect costs attributable to
private sector work of defense contractors (sec. 808)
The House bill contained a provision (sec. 844) that would
authorize the Secretary of Defense to enter into agreements
with contractors performing or seeking to perform

[[Page H665]]
private sector work. The House provision would apply modified
accounting rules with respect to the allocation of indirect
costs associated with a contractor's private sector work.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would clarify the
method for allocation of indirect costs to contractor private
sector work and would require the Secretary of Defense to
report on the use of the authority contained in this
provision. The conferees expect the Secretary to act
expeditiously on each defense contractor application for an
agreement under this section.
Subcontracts for ocean transportation services (sec. 809)
The Senate amendment contained a provision (sec. 802(b))
that would delay, until May 1, 1996, the inclusion of section
1241(b) of title 46, United States Code, or section 2631 of
title 10, United States Code, on a list promulgated under
section 430(b) of title 41, United States Code.
The House bill contained no similar provision.
The House recedes.
Prompt resolution of audit recommendations (sec. 810)
The Senate amendment contained a provision (sec. 803) that
would conform section 6009 of the Federal Acquisition
Streamlining Act of 1994 to the reporting requirements of the
Inspector General Act of 1978.
The House bill contained no similar provision.
The House recedes.
Test programs for negotiation of comprehensive subcontracting
plans (sec. 811)
The Senate amendment contained a provision (sec. 804) that
would amend the test authority to remove the limitation on
the activities that may be included in a test. The provision
would also reduce the number of contracts and the aggregate
dollar value of those contracts required to establish a
condition for a contractor's participation in the test
program.
The House bill contained no similar provision.
The House recedes.
Authority to procure for test or experimental purposes (sec.
812)
The Senate amendment contained a provision (sec. 808) that
would amend section 2373 of title 10, United States Code, to
conform the newly-codified section to the scope of the
service-specific statutes it replaced.
The House bill contained no similar provision.
The House recedes.
Use of funds for acquisition of rights to use designs,
processes, technical data and computer software (sec.
813)
The Senate amendment contained a provision (sec. 810) that
would clarify section 2386 of title 10, United States Code,
regarding the types of information the Secretary of Defense
may acquire from Department of Defense contractors.
The House bill contained no similar provision.
The House recedes.
Independent cost estimates for major defense acquisition
programs (sec. 814)
The Senate amendment contained a provision (sec. 811) that
would permit the military departments or defense agencies,
independent of their respective acquisition executives, to
prepare independent cost estimates for major defense
acquisitions assigned to individual components for oversight.
The provision would align the responsibility for independent
cost estimates with the level of the decision authority.
The House bill contained no similar provision.
The House recedes.
Construction, repair, alteration, furnishing, and equipping
of naval vessels (sec. 815)
The Senate amendment contained a provision (sec. 813) that
would restore the policy regarding the application of the
Walsh-Healey Act, repealed by the Federal Acquisition
Streamlining Act 1994, to contracts for the construction,
alteration, furnishing, or equipping of naval vessels.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Subtitle B--Other Matters

Procurement technical assistance programs (sec. 821)
The Senate amendment contained a provision (sec. 821) that
would add $12.0 million to continue the procurement technical
assistance center program in fiscal year 1996.
The House bill contained no similar provision, but
authorized $10.0 million to continue the program in fiscal
year 1996.
The House recedes.
Additional Department of Defense pilot programs (sec. 822)
The conferees have adopted a provision that would set forth
criteria for designating a facility to participate in a
Department of Defense pilot program and require that the
Congress approve the designation in legislation enacted after
the enactment of the National Defense Authorization Act for
Fiscal Year 1996. The conferees intended that the pilot
program be used to test, among other initiatives, the
expansion of commercial practices throughout a facility in
which work is being performed under contracts with the
Department of Defense. Nothing in this provision is intended
to authorize or award a contract, or to exempt a facility
from competition requirements in the award of a contract.
Treatment of Department of Defense cable television franchise
agreements (sec. 823)
The Senate amendment included a provision (sec. 822) that
would require cable television franchise agreements between
cable television operators and the Department of Defense to
be considered contracts for the telecommunications services
under Part 49 of the Federal Acquisition Regulation (FAR).
The House bill contained no similar provision.
The House recedes with an amendment. The amendment would
require the United States Court of Federal Claims to render
an advisory opinion to Congress on the power of the executive
branch to treat cable franchise agreements as contracts under
the FAR and, if so, whether the executive branch is required
by law to treat these agreements as contracts under the FAR.
If the answer to both questions is affirmative, the conferees
expect the Department of Defense to implement regulations
treating cable franchise agreements as contracts for purposes
of the FAR. If the Court renders an affirmative answer to the
first question, the conferees will regard that as significant
basis for enacting a provision similar to that in the Senate
amendment.
Mentor-protege program authority (sec. 824)
The conferees have adopted a provision that would extend
for one year the authority for eligible businesses under the
Mentor-Protege program to enter into new agreements. The
conferees agree that this extension does not prejudge the
outcome of ongoing reviews of programs with similar
objectives.

LEGISLATIVE PROVISIONS NOT ADOPTED

Testing of defense acquisition programs
The House bill contained a provision (sec. 823) that would
amend section 2366 of title 10, United States Code, regarding
requirements for operational testing in defense acquisition
programs.
The Senate amendment contained no similar provision.
The House recedes.
Waivers from cancellation of funds
The Senate amendment contained a provision (sec. 801) that
would make funds available for satellite on-orbit incentive
fees until such fees would be earned.
The House bill contained no similar provision
The Senate recedes.
Repeal of duplicative authority for simplified acquisition
purchases
The Senate amendment contained a provision (sec. 817) that
would repeal the authority for simplified acquisition
purchases in section 427 of title 41, United States Code.
The House bill contained no similar provision.
The Senate recedes.
Restriction on reimbursement of costs
The Senate amendment contained a provision (sec. 819) that
would prohibit reimbursement of allowable costs above
$250,000 for individual compensation in fiscal year 1996. The
provision also expressed the sense of the Senate that
Congress should consider making such prohibition permanent.
The House bill contained no similar provision.
The Senate recedes.
The conferees question the appropriateness of the level of
industry executive compensation reimbursement as an allowable
expense under government contracts. The conferees direct the
Secretary of Defense to conduct a thorough assessment of its
current policies and procedures regarding standards of
allowability, allocability, and reasonableness of
compensation reimbursement by the Department of Defense. In
carrying out such assessment, the Secretary should conduct a
survey of the executive compensation practices of comparable
non-defense firms involved with similar industries, taking
into consideration size and geographic location.
The conferees direct the Secretary to submit a report to
the congressional defense committees not later than March 31,
1996. The report should detail the results of the Secretary's
assessment and any changes to current policies and
procedures, implemented as a result of the assessment.

Title IX--Department of Defense Organization and Management

LEGISLATIVE PROVISIONS

LEGISLATIVE PROVISION ADOPTED

Subtitle A--General Matters

Reorganization of the Office of the Secretary of Defense
(sec. 901-903 and 905)
The House bill contained a provision (sec. 901) that would
require that direct support activities and similar functions
be included in the mandated personnel reduction. This
provision would also reduce the number of authorized
assistant secretaries of defense by two and require that the
Secretary of Defense provide Congress with a comprehensive
reorganization plan for the office. Additionally, it would
repeal a number of the current statutorily mandated offices
and positions within OSD.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would require the
Secretary of Defense to conduct a detailed review of the
organization and functions of the Office of the Secretary of
Defense, including the Washington Headquarters Service and
the Defense Support Agencies. The amendment would also direct
the following: a 25 percent reduction

[[Page H666]]
of the Office of the Secretary of Defense over five years; reduction of
the number of Assistant Secretaries of Defense by one, from
eleven to ten; and, on January 31, 1997, repeal certain
statutory mandated offices and positions within the Office of
the Secretary of Defense. Additionally, the amendment would
establish a charter for the Joint Requirements Oversight
Council (JROC) effective January 31, 1997.
The conferees, while agreeing to provide the Secretary with
broad latitude in recommending changes to the existing OSD
structure, continue to strongly believe that the functional
responsibilities associated with Special Operations and Low
Intensity (SOLIC) should be carried out under a senior
civilian official who can maintain clear and unambiguous
civilian control over that element of the military.
Therefore, the conferees urge that the Secretary, in
formulating the plan required by this provision, vest the
SOLIC responsibility in an official whose appointment is
subject to the advice and consent of the Senate and for whom
the SOLIC function shall be a principal responsibility.
Redesignation of the position of Assistant to the Secretary
of Defense for Atomic Energy (sec. 904)
The Senate amendment contained a provision (sec. 901) that
would change the name of the Assistant to the Secretary of
Defense for Atomic Energy to be the Assistant to the
Secretary of Defense for Nuclear and Chemical and Biological
Defense Programs.
The House bill contained no similar provision.
The House recedes.
Restructuring of Department of Defense acquisition
organization and workforce (sec. 906)
The House bill contained a provision (sec. 902) that would
require the Secretary of Defense to submit a report to
Congress including a plan for restructuring the current
acquisition organizations in the Department of Defense as
well as an assessment of specified restructuring options. The
provision would also mandate a reduction of the acquisition
workforce by 25 percent from October 1, 1995 to October 1,
1998, and require a reduction of 30,000 acquisition workforce
positions in the Department of Defense in fiscal year 1996.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment requiring the
Secretary to submit the report on a plan to reduce by October
1, 1998 the acquisition workforce, as defined by the
Secretary, 25 percent below the baseline of October 1, 1994.
The provision would also require the Secretary to reduce the
number of acquisition personnel by 15,000 in fiscal year
1996.
Report on nuclear posture review and on plans for nuclear
weapons management in event of abolition of Department of
Energy (sec. 907)
The House bill contained a provision (sec. 903) that would
require the Secretary of Defense to prepare and submit a
report to Congress that describes the Secretary's plan to
incorporate the national security programs of the Department
of Energy (DOE) into the Department of Defense. In developing
the plan the Secretary would be required to make every effort
to preserve the integrity, mission, and functions of these
programs. The Senate amendment contained a provision (sec.
3151) that would require the Secretary of Defense to provide
the congressional defense committees with an assessment of
the effectiveness of the DOE. The assessment should include:
(1) maintaining the nuclear weapons stockpile; (2) management
of its environmental, health, and safety requirements, and
national security research and development, as compared with
similar DoD operations; and (3) the fulfillment of DOE's
Nuclear Posture Review requirements.
The Senate recedes with an amendment that combines both
provisions.
Redesignation of Advanced Research Projects Agency (sec. 908)
The House bill contained a provision (sec. 908) that would
change the designation of the Advanced Research Projects
Agency to the Defense Advanced Research Projects Agency.
The Senate amendment contained no similar provision.
The Senate recedes.

Subtitle B--Financial Management

Transfer authority regarding funds available for foreign
currency fluctuation (sec. 911)
The Senate amendment contained a provision (sec. 1006) that
would authorize a foreign currency fluctuation account for
the military personnel appropriation. This authorization
would be limited to fiscal year 1996 and subsequent
appropriations.
The House bill contained no similar provision.
The House recedes.
Defense Modernization Account (sec. 912)
The Senate amendment contained a provision (sec. 1003) that
would establish a Defense Modernization Account to encourage
savings within the Department of Defense and to make those
savings available to address the serious shortfall in funding
for modernization.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Under the conference agreement, the Secretary of Defense
could place in the Defenses Modernization Account funds saved
from achieving economies and efficiencies in: (1) investment
programs; and (2) installation management (to the extent that
unobligated balances in installation management are available
during the last 30 days of the fiscal year). The conferees
fully expect the Department to protect current readiness of
the forces, particularly in regard to funds for budget
activities one and two in the operation and maintenance
appropriations accounts.
In order to encourages savings by the military departments
and the Department of Defense, funds placed in the account
would be reserved for use by the department or component that
generated the savings. No funds could be made available from
the account by the department of defense except through
established reprogramming procedures. Reprogramming
procedures could not be used to exceed the statutory funding
authorization or statutory quantity ceiling applicable to a
given program. The amount of funds that could be reprogrammed
by the Department of Defense could not exceed $500.0 million
in any one fiscal year.
Disbursing and certifying officials (sec. 913)
The House bill contained a provision (sec. 1004) that would
provide for the designation and appointment of disbursing and
certifying officials within the Department of Defense.
The Senate bill contained a similar provision (sec. 1002)
that would authorize the designation and appointment of
disbursing and certifying officials, and would grant relief
from liability in certain specific circumstances. Relief from
liability would be based on demonstrated accountability for
the loss is determined and diligent efforts to collect money
owed to the government has been made.
The House recedes.
Fisher House Trust Funds (sec. 914)
The Senate amendment contained a provision (sec. 742) that
would establish trust funds on the books of the Treasury for
Fisher Houses. The interest earned by these trust funds would
be used for the administration, operation, and maintenance of
Fisher Houses within the Army and Air Force.
The House bill contained no similar provision.
The House recedes with a technical amendment.
Limitation on use of authority to pay for emergency and
extraordinary expenses (sec. 915)
The House bill contained a provision (sec. 372) that would
require the Secretary of Defense to submit to Congress a
quarterly report of expenditures for emergency and
extraordinary expenses. The provision would also require the
Secretary of Defense to provide congressional notification
prior to an obligation or expenditure of $1.0 million or
more.
The Senate amendment included a provision (sec. 1005) that
would require the Secretary of Defense to notify Congress
five days prior to an obligation or expenditure of emergency
and extraordinary expenses authority in excess of $500,000
and 15 days prior to an obligation or expenditure of $1.0
million. The provision would allow the Secretary of Defense
to waive the time period required for notification prior to
obligation or expenditure of funds if a determination were
made that such prior notification would compromise national
security objectives. In the event the Secretary uses the
authority to waive notification for national security
reasons, notification would be required 30 days after the
expenditure of funds or on the date the activity is
completed.
The House recedes with an amendment that would require the
Secretary of Defense to notify the congressional defense
committees five days in advance of obligation or expenditure
of funds in excess of $500,000 or 15 days in advance of
obligation or expenditure of funds in excess of $1.0 million.
In the event the Secretary determines that prior notification
of the obligation or expenditure of funds would compromise
national security objectives, the provision would allow the
Secretary to waive the waiting period. In the event a
national security waiver is necessary, the Secretary shall
immediately notify the congressional defense committees of
the need to expend funds, and provide the chairman and
ranking member, or their designees, with any relevant
information, including the amount and purposes for the
obligation or expenditure.
The conferees remain concerned about the use of Department
of Defense funds for purposes that are more appropriately
funded through the international affairs budget. The
conferees urge the administration to refrain recommending the
use of the Department of Defense emergency and extraordinary
expenses authority for non-defense purposes. The conferees
also caution the Department to exercise minimal and judicious
use of the national security waiver.

legislative provisions not adopted

Change in titles of certain Marine Corps general officer
billets resulting from reorganization of the
Headquarters, Marine Corps
The House bill contained a provision (sec. 904) that would
change references in current law to reflect the
reorganization of Headquarters, Marine Corps.
The Senate amendment contained no similar provision.
The House recedes.
Inclusion of Information Resources Management College in the
National Defense University
The House bill contained a provision (sec. 905) that would
authorize the Secretary of Defense to establish a personnel
system for

[[Page H667]]
the Information Resources Management College that is consistent with
the personnel system for other institutions within the
National Defense University.
The Senate amendment contained no similar provision.
The House recedes.
Employment of civilians at the Asia-Pacific Center for
Security Studies
The House bill contained a provision (sec. 906) that would
authorize the Secretary of Defense to establish a personnel
system for the Asia-Pacific Center for Security Studies.
The Senate amendment contained no similar provision.
The House recedes.
Naval nuclear propulsion program
The House bill contained a provision (sec. 909) that would
establish that no department or agency may regulate or direct
any Propulsion Program unless otherwise permitted or
specified by law. It contained a second provision (sec.
1032(m)) that would repeal section 1634 of the National
Defense Authorization Act for Fiscal Year 1985 (Public Law
98-525, 42 U.S.C. 7158 note). Section 1634 stipulates that
the provisions of Executive Order 12344, dated February 1,
1982, pertaining to the Naval Nuclear Propulsion Program,
shall remain in force until changed by law.
The Senate amendment contained no similar provision.
The House recedes on both section 909 and section 1032(m).
Aviation testing consolidation
The House bill contained a provision (sec. 910) that would
prevent the Secretary of the Army from consolidating the
Aviation Technical Test Center, Fort Rucker, Alabama, with
any other aviation testing facility until 60 days after the
date on which a report was received.
The Senate amendment contained no similar provision.
The House recedes.
Office of Humanitarian and Refugee Affairs
The Senate amendment contained a provision (sec. 364) that
would eliminate the Office of Humanitarian and Refugee
Affairs within the Office of the Assistant Secretary of
Defense for Special Operations and Low Intensity Conflict.
The House bill contained no similar provision.
The Senate recedes.

Title X--General Provisions

items of special interest

Assistance to local educational agencies when installation
housing is located on leased land
The conferees note that the Secretary of Education has
declined to recognize military connected students as residing
on Federal property if the government owned housing in which
they reside is located on leased land. In one case,
recognition of on-installation residency was denied even
though the housing is located within the security perimeter
of the installation and is managed in the same manner as
government housing located on government owned land.
The conferees believe that, for purposes of assistance to
local educational agencies, residents of government owned
housing, located on land leased by the government and managed
in the same manner as government housing on government owned
land, shall be considered residents of federal property.
Authority to conduct personnel demonstration projects
The National Defense Authorization Act for Fiscal Year 1995
made permanent the authority of the Secretary of the Navy to
continue personnel demonstration projects at the Naval Air
Warfare Center Weapons Division, China Lake, California, and
the Naval Command, Control, and Ocean Center, San Diego,
California, and at successor organizations resulting from the
reorganization of Naval Air Warfare Center Weapons Division
or the Naval Command, Control, and Ocean Center.
Additionally, the National Defense Authorization Act for
Fiscal Year 1995 provided expanded authority for the
Secretary of Defense to conduct personnel demonstration
projects at Science and Technology Reinvention Laboratories.
The conferees are concerned about what appears to be a lack
of real progress in this area over the past year. Therefore,
the conferees direct the Department of Defense to report to
the Senate Committee on Armed Services and the House
Committee on National Security, not later than February 1,
1996, the extent to which these expanded authorities have
been used in each of the military departments. As a minimum,
this report should include those demonstration projects
proposed by the military departments, the status of each such
proposal, and the projected date for final action on each
proposal.

legislative provisions

legislative provisions adopted

Subtitle A--Financial Matters

Transfer authority (sec. 1001)
The House bill contained a provision (sec. 1001) that would
allow the Department of Defense to transfer up to $2.0
billion between accounts using normal reprogramming
procedures.
The Senate amendment contained a similar provision (sec.
1001).
The House recedes.
Incorporation of classified annex (sec. 1002)
The House bill contained a provision (sec. 1002) that would
incorporate by reference the classified annex to the bill. In
addition, the provision would authorize the expenditure of
funds made available for programs, projects, and activities
referred to in the classified annex according to the terms,
conditions, limitations, restrictions, and requirements of
those programs, projects, and activities.
The Senate amendment contained no similar provision.
The Senate recedes with a technical amendment.
Improved funding mechanisms for unbudgeted operations (sec.
1003), Operation Provide Comfort (sec. 1004), and
Operation Enhanced Southern Watch (sec. 1005)
The House Bill contained a provision (sec. 1003) that would
establish a procedure for the funding of contingency
operations out of accounts other than those which are
normally known as operational readiness accounts. This
provision would also require the President to budget for any
operations that are ongoing in the first quarter of a fiscal
year and are expected to continue into the next fiscal year.
If the President were to fail to request the necessary funds
in his annual budget, then funding for these operations would
be denied at the start of the next fiscal year.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would include
three separate provisions that would: (1) modify the funding
mechanism proposed by the House for contingency operations;
(2) authorize $503.8 million for Enhanced Southern Watch and
require that semi-permanent elements of this operation be
designated as forward presence operations; and (3) authorize
$143.3 million for Provide Comfort and require the Secretary
of Defense to provide a report on this operation. The
authorization includes both military personnel and operations
and maintenance funding.
The conferees have observed with concern, the continuing
growth of the Department of Defense involvement in unbudgeted
peacekeeping and humanitarian contingency operations that
negatively impact upon military readiness. The Secretary of
Defense initially estimated the unbudgeted fiscal year 1996
costs to the Department for ongoing operations in Iraq, Haiti
and Bosnia to be $1.2 billion. This amount excludes the
estimated $1.5 billion incremental cost of the proposed
deployment of U.S. ground forces to Bosnia. Lacking the
budgeted resources, the Department has resorted to the
practice of financing the cost of these operations from the
military services' operational readiness accounts. This
practice has resulted in the cancellation or deferral of some
training exercises, necessary equipment maintenance, and
other routine activities that degrade the readiness of the
force. Depending on what activities are foregone, this
adverse impact could be significant.
In recognition of this problem, the Administration's fiscal
year 1996 legislative proposal contained a request to grant
the Secretary of Defense extraordinary authority to transfer
funds between accounts. The conferees instead recommend a
provision that would more fully address this matter by
providing new funding mechanisms for unforeseen and
unbudgeted contingency operations.
To address unforeseen and unbudgeted operations, the
provision would revise existing provisions of law to require
the Secretary of Defense to draw upon the Defense Business
Operating Fund (DBOF) to provide much of the funding for
these operations. In addition, the provision authorizes a
targeted transfer authority of $200.0 million from non-
readiness accounts. These accounts are intended to serve as
interim funding mechanisms until Congress approves a
supplemental appropriations package to replenish the DBOF
cash balances or other accounts from which funds were
transferred.
To address ongoing operations in southern Iraq, the
conferees recommend a provision that would authorize $503.8
million for Enhanced Southern Watch during fiscal year 1996
and would require that before obligating more than $250
million of this amount, the Secretary of Defense shall
provide the Congressional Defense Committees with a report
designating any elements of Operation Enhanced Southern Watch
that are semipermanent in nature as forward presence
operations that should be budgeted in the future in the same
manner as other forward presence operations routinely
budgeted as part of the annual defense budget. The conferees
believe that the aftermath of the Persian Gulf War has
fundamentally altered the security situation in the region in
a manner that will require a significant U.S. presence for
years to come.
To address the operation designated as Provide Comfort, the
conferees recommend a provision that would authorize $143.3
million in fiscal year 1996. This provision would also
require the Secretary of Defense to submit a report that
details the expected fiscal year 1996 costs of that
operation, and the missions and functions expected to be
performed by the Department of Defense and other agencies of
the Federal Government. In addition, this report should
discuss the options related to reduction of the level of the
military involvement in the operation, and include an exit
strategy for the United States.
Finally, the conferees express the view that costs borne by
the Department of Defense in conducting contingency
operations in support of another agency's mission, such as
humanitarian relief, law enforcement and

[[Page H668]]
immigration control, should not be assessed against the defense budget
topline. The conferees are concerned with the increasing cost
of these operations at a time of declining defense budgets
and the negative impact this has had upon military readiness.
The conferees endorse the historical principle of maintaining
a peacetime defense budget designed to adequately fund the
activities of the Department of Defense to organize, train
and equip military forces in a manner sufficient to meet
national security requirements.
In addition, the conferees note that the five year defense
program remains underfunded relative to the national security
strategy and recommended military force structure. The
negative impact of these shortfalls will grow in the years
ahead and threaten our ability to maintain adequate levels of
short and long-term readiness, including sorely needed
equipment modernization. Therefore, the conferees believe
that funding for contingency operations should be provided in
addition to what would have otherwise been made available for
the Department of Defense for its normal peacetime
activities.
Unauthorized appropriations for fiscal year 1995 (sec. 1006)
The House bill contained a provision (sec. 1005) that would
allow the Department of Defense to obligate funds for all
fiscal year 1995 programs, projects, and activities for which
the amount appropriated exceeded the amount authorized.
The Senate amendment contained no such provision.
The Senate recedes.
Authorization of prior year emergency supplemental
appropriations for fiscal year 1995 (sec. 1007)
The House bill contained a provision (sec. 1006) that would
authorize the emergency supplemental appropriations enacted
in the Emergency Supplemental Appropriations and Rescissions
for the Department of Defense to Preserve and Enhance
Military Readiness Act of 1995 (Public Law 104-6). This Act
provided funding for fiscal year 1995 expenses related to
military operations in Southwest Asia, Haiti, Cuba, Somalia,
Bosnia, and Korea.
The Senate amendment contained a similar provision (sec.
1004).
The Senate recedes.
Authorization reductions to reflect savings from revised
economic assumptions (sec. 1008)
The conferees agree to a provision that would reflect
revised economic assumptions that were not available prior to
the conference report.

Subtitle B--Naval Vessels and Shipyards

Iowa class battleships (sec. 1011)
In February 1995, the Secretary of the Navy made a decision
to strike the Navy's four inactive Iowa class battleships
from the naval register. The Senate amendment contained a
provision (sec. 1011) that would direct the Secretary of the
Navy to restore at least two Iowa class battleships to the
naval register in an inactive status. The Secretary would be
required to retain them on the register until he is prepared
to certify that the Navy has within the fleet an operational
surface fire support capability that equals or exceeds the
fire support capability that the battleships could provide if
returned to active service.
The Senate provision would recognize the fact that
battleships could provide a surface fire support capability
unmatched by any other Navy weapons system and that there is
an ongoing concern regarding the Department of the Navy's
apparent lack of commitment to provide for the surface fire
support capability necessary for amphibious assaults. The
ability of the Marine Corps and the Navy to conduct forcible
entry by amphibious assault is an essential element of the
Department of the Navy's strategic concept for littoral
warfare.
The House bill contained no similar provision.
The House recedes with an amendment.
The conferees believe that the Department of the Navy's
future years defense program, presented with the fiscal year
1996 budget, could not produce a replacement fire support
capability comparable to the battleships until well into the
next century. The conferees consider retention of two
battleships in the fleet's strategic reserve a prudent
measure.
Transfer of naval vessels to certain foreign countries (sec.
1012)
The Senate amendment included a provision (sec. 1012) that
would authorize the Secretary of the Navy to transfer eight
FFG-7 class guided missile frigates to various countries.
Seven of the frigates would be transferred by grant, and one
by lease.
The House bill contained no similar provision.
The House recedes with an amendment that would:
(1) reduce the number of grant transfers from seven to
four, and the remaining frigates would be transferred by
lease or sale;
(2) require that, as a condition of the transfer of the
eight frigates, any repair or refurbishment needed before the
transfer, be performed at a shipyard located in the United
States;
(3) amend section 2763 of title 22, United States Code, to
permit foreign countries to use foreign assistance funds to
lease vessels; and
(4) amend section 2321j of title 22, United States Code, to
prohibit future grant transfers of any vessel that is in
excess of 3,000 tons or that is less than 20 years old.
The conferees are aware that in some cases U.S. national
security will be best served by a grant transfer,
particularly when the recipient is an important coalition
defense partner that is making valuable contributions to U.S.
security or lacks the resources to obtain a vessel by lease
or sale. Accordingly, the amendment to section 2321j would
permit the President to request a future grant transfer if it
is determined that it is in the national security interest of
the United States.
Contract options for LMSR vessels (sec. 1013)
The House bill contained a provision (sec. 1021) that would
recommend that the Secretary of the Navy negotiate a contract
option price for a seventh large medium speed roll-on/roll-
off (LMSR) strategic sealift ship at each of the two
shipyards that currently have construction contracts.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would clarify
that the provision would not preclude the Secretary of the
Navy from competing these two contract options between the
two shipyards that currently have construction contracts.
National Defense Reserve Fleet (sec. 1014)
The Senate amendment contained a provision (sec. 381) that
would permit the use of the National Defense Sealift Fund
(NDSF) to budget for expenses of the national defense reserve
fleet (NDRF). Beginning with the fiscal year 1996 request,
funds for NDRF expenses would be included in the NDSF budget
request within budget function 051.
The House bill contained no similar provision.
The House recedes with an amendment that would:
(1) clarify that NDRF vessels would not require retrofit to
a double hull configuration as a consequence of this change
in budgeting procedure;
(2) clarify that NDSF funds shall not be used for the
acquisition of ships for the NDRF that are built in foreign
shipyards; and
(3) permit the use of NDSF funds to complete the
modifications needed to prepare two roll-on/roll-off ships
that were purchased in fiscal year 1995 for incorporation
into the ready reserve force of the NDRF.
The conferees intend that the Department of Defense seek
and obtain specific legislative authorization prior to
obligating and expending any funds for the acquisition of any
vessels for the NDRF.
The conferees are aware of the importance of strategic
sealift to national security. The conferees will revisit the
prohibition on procurement of ships built in foreign
shipyards but will only do so when the Department has
established and funded a national defense features program,
and they have had an opportunity to evaluate its
effectiveness as an alternative source of strategic sealift.
Naval salvage facilities (sec. 1015)
The Senate amendment contained a provision (sec. 805) that
would consolidate all sections in chapter 637 of title 10,
United States Code, relating to naval salvage facilities.
The House bill contained no similar provision.
The House recedes with an amendment.
Vessels subject to repair under phased maintenance contracts
(sec. 1016)
The House bill contained a provision (sec. 1022) that would
require the Secretary of the Navy to ensure that vessels or
classes of vessels, covered by phased maintenance contracts
while in active Navy service, would continue to be covered by
those contracts after being transferred to other operating
commands, such as the Military Sealift Command.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would restrict
this requirement to type AE ships covered by phased
maintenance contracts as of the date of enactment of the
National Defense Authorization Act for Fiscal Year 1996.
Clarification of requirements relating to repairs of vessels
(sec. 1017)
Section 7310 of title 10, United States Code, places limits
on the type of repairs that can be performed by foreign
shipyards on Navy ships that are homeported in the United
States. The House bill contained a provision (sec. 1023) that
would amend section 7310 by designating Guam a United States
homeport for purposes of that section.
The Senate recedes.
Naming amphibious ships (sec. 1018)
The Senate amendment contained a provision (sec. 1013) that
would make the following findings:
(1) this is the fiftieth anniversary of the battle of Iwo
Jima, one of the greatest victories in the Marine Corps'
illustrious history;
(2) the Navy has recently retired the ship that honored
that battle, U.S.S. Iwo Jima (LPH-2), the first ship in a
class of amphibious assault ships;
(3) this Act authorizes the LHD-7, the final ship of the
Wasp class of amphibious assault ships, to replace the Iwo
Jima class of ships;
(4) the Navy is planning to start building a new class of
amphibious transport docks, now called the LPD-17 class, and
this Act also authorizes funds that will lead to procurement
of these vessels;

[[Page H669]]

(5) there has been some confusion in the rationale behind
naming new naval vessels, with traditional naming conventions
frequently violated; and
(6) although there have been good and sufficient reasons to
depart from naming conventions in the past, the rationale for
such departures has not always been clear.
The Senate amendment would also express the sense of the
Senate that:
(1) the LHD-7, authorized in the Senate amendment, should
be named the U.S.S. Iwo Jima; and
(2) the ships of the LPD-17 class amphibious ships should
be named after a Marine Corps battle or a member of the
Marine Corps.
The House bill contained no similar provision.
The House recedes with an amendment. The conferees agree to
endorse the sense of the Senate expressed as a sense of
Congress.
Naming of naval vessel (sec. 1019)
The House bill contained a provision (sec. 1024) that would
express the sense of Congress that the Secretary of the Navy
should name an appropriate naval vessel the U.S.S. Joseph
Vittori.
The Senate amendment contained no similar provision.
The Senate recedes.
Transfer of riverine patrol craft (sec. 1020)
The House bill contained a provision (sec. 1025) that would
authorize the Secretary of the Navy to transfer one Swift
class riverine patrol craft to the Tidewater Community
College, Portsmouth, Virginia, for scientific and educational
purposes.
The Senate amendment contained no similar provision.
The Senate recedes.

Subtitle C--Counter-Drug Activities

Counter-drug activities
The budget request for drug interdiction and counter-drug
activities totals $680.4 million, plus $131.5 million for
operational tempo which is included within the operating
budgets of the military services.
Both the House bill and the Senate amendment would
authorize the budget request of $680.4 million, with marginal
differences in the allocation of these funds.
Both the House bill and the Senate amendment would delete
funding for the Community Outreach Programs ($8.2 million).
In addition, the Senate amendment included a provision (sec.
1022) that would prohibit continued Department of Defense
(DOD) funding of the National Drug Intelligence Center (NDIC)
($34.0 million).
The House bill would authorize increased funding for the
Tethered Aerostat Radar System ($1.5 million), Counterdrug
Analysis ($1.2 million), Southcom Radars ($1.5 million),
Special Operations Forces (SOF) Counterdrug Support ($2.5
million), and CARIBROC Communications ($1.5 million).
The Senate amendment would authorize an increase in funding
for procurement of non-intrusive inspection devices for the
Customs Service ($25.0 million), Source Nation Support
Initiatives ($15.2 million) and the Gulf States Counterdrug
Initiative ($2.0 million).
The conferees agree to delete DOD funding for the Community
Outreach Programs and to reduce funding for the National Drug
Intelligence Center to $20.0 million. The conferees also
agree to an undistributed reduction of $12.3 million. Offsets
to comply with the undistributed reduction may not be taken
from items where increases have been provided.
The conferees agree to authorize additional funding for Law
Enforcement Agency Support, with a $4.0 million increase to
expand the intelligence activities of the Gulf States Coast
Initiative and a $2.5 million increase for the Southwest
Border States Information System. The conferees support
continued DOD assistance for the Southwest Border States
Anti-Drug Information System and urge the Secretary of
Defense to continue to monitor and support this system
through completion of the current program.
The conferees further agree to authorize an additional
increase of $28.0 million for other Law Enforcement Agency
Support. The conferees urge the Secretary of Defense, through
normal reprogramming procedures, to use up to $25.0 million
of these funds to procure low-energy/backscatter x-ray
equipment for use as non-intrusive inspection devices. The
conferees are aware that 70 percent of the illegal drugs that
enter the United States come, primarily by air, into Mexico
and then across the southwest border by truck and automobile.
The conferees believe that the fielding of non-intrusive
inspection devices at the southwest border would
significantly contribute to the fight against illegal drug
trafficking across the United States-Mexican border. The
conferees also urge the Secretary of Defense, through normal
reprogramming procedures, to consider using available funds
for improvements and extension of the existing fence along
the San Diego Border Patrol Sector.
Allocation of funds for counterdrug activities are
indicated below:

Drug interdiction and counterdrug activities, operations and
maintenance

Thousands
Fiscal year 1996 drug and counterdrug request................$680,400
Source nation support.......................................127,300
Dismantling cartels..........................................64,300
Detection and monitoring....................................111,700
Law enforcement agency support..............................279,300
Demand reduction.............................................97,800
Reductions:
Community outreach programs...................................8,236
National Drug Intelligence Center............................14,000
Undistributed reduction......................................12,264
Increases, law enforcement agency support:
Gulf States counterdrug initiative............................4,000
Southwest border States information system....................2,500
Other (non-intrusive inspection devices, Southwest border fence28,000
__________

Total.....................................................680,400

Revision and clarification of authority for Federal support
of drug interdiction and counter-drug activities of the
National Guard (sec. 1021)
The Senate amendment contained a provision (sec. 1021) that
would revise and clarify authority for federal support of
drug interdiction and counter-drug activities of the National
Guard.
The House bill contained no similar provision.
The House recedes with an amendment which would further
clarify the legal status of National Guard personnel
participating in these programs.
National Drug Intelligence Center (sec. 1022)
The Senate amendment included a provision (sec. 1022) that
would prohibit further Department of Defense (DOD) funding of
the National Drug Intelligence Center (NDIC), but would allow
the Secretary of Defense to continue to provide DOD
intelligence personnel to support intelligence activities at
NDIC, as long as the number of personnel provided by DOD does
not exceed the number used to support intelligence activities
at NDIC as of the date of enactment of this bill.
The House bill contained no similar provision.
The House recedes.

Subtitle D--Civilian Personnel

Management of Department of Defense civilian personnel (sec.
1031)
The House bill contained a provision (sec. 331) that would
prohibit the use of full-time equivalent personnel ceilings
in the management of the Department of Defense's civilian
workforce.
The Senate amendment contained a similar provision (sec.
332).
The Senate recedes with a clarifying amendment.
The conferees direct the Secretary of Defense to report to
the Senate Committee on Armed Services and the House
Committee on National Security by February 15, 1996, on plans
to manage civilian personnel in consideration of this
provision.
Conversion of military positions to civilian positions (sec.
1032)
The House bill contained a provision (sec. 333) that would
require the Secretary of Defense to convert not less than
10,000 military positions to performance by civilian
employees of the Department of Defense.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would permit the
conversion to be phased over two fiscal years.
Elimination of 120-day limitation on details of certain
employees (sec. 1033)
The Senate amendment contained a provision (sec. 338) that
would amend section 3341 of title 5, United States Code, to
eliminate the requirement that the administration of details
for civilian employees be managed in 120-day increments.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Authority of civilian employees of the Department of Defense
to participate voluntarily in reductions in force (sec.
1034)
The Senate amendment contained a provision (sec. 340) that
would allow employees who are not affected by a reduction-in-
force (RIF) to volunteer to be RIF separated in place of
other employees who are scheduled for RIF separation.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Authority to pay severance payments in lump sums (sec. 1035)
The Senate amendment contained a provision (sec. 341) that
would amend section 5595 of title 5, United States Code, to
permit the lump-sum payment of severance pay.
The House bill contained no similar provision.
The House recedes.
Continued health insurance coverage (sec. 1036)
The House bill contained a provision (sec. 337) that would
extend continued health insurance coverage for certain
employees affected by a force reduction or a base realignment
and closure action.
The Senate amendment contained a similar provision (sec.
337).
The Senate recedes.
Revision of authority for appointments of involuntarily
separated military reserve technicians (sec. 1037)
The Senate amendment contained a provision (sec. 336) that
would amend section 3329 of title 5, United States Code, to
eliminate

[[Page H670]]
the requirement regarding separated technicians.
The House bill amendment contained no similar provision.
The House recedes.
Wearing of uniform by National Guard technicians (sec. 1038)
The Senate amendment contained a provision (sec. 333) that
would require military technicians to wear military uniforms
in their jobs. The provision would also place technician
officers on the same footing as Active Guard and Reserve
officers for purposes of qualifying for a uniform allowance.
The House bill contained no similar provision.
The House recedes.
Military leave for military reserve technicians for certain
duty overseas (sec. 1039)
The House bill contained a provision (sec. 512) that would
authorize military technicians an additional 44 workdays of
leave, without loss of pay and other benefits, for periods
the technician would serve on active duty, without pay, while
in support of non-combat operations outside the United
States.
The Senate amendment contained no similar provision.
The Senate recedes.
Personnel actions involving employees of nonappropriated fund
instrumentalities (sec. 1040)
The House bill contained a provision (sec. 334) that would
clarify the definition of nonappropriated fund
instrumentality employees and permit the direct reporting of
violations by nonappropriated fund employees to the
Department of Defense Inspector General.
The Senate amendment contained no similar provision.
The Senate recedes.
Coverage of nonappropriated fund employees under authority
for flexible and compressed work schedules (sec. 1041)
The House bill contained a provision (sec. 336) that would
provide the same overtime exemption for nonappropriated fund
employees as applies to other civilian employees of the
Department of Defense.
The Senate amendment contained a similar provision (sec.
343).
The House recedes.
Limitation on provision of overseas living quarters
allowances for nonappropriated fund instrumentality
employees (sec. 1042)
The House bill contained a provision (sec. 335) that would,
as of September 30, 1997, conform the allowance for overseas
living quarters for nonappropriated fund employees to that
provided for civilian employees of the Department of Defense
paid from appropriate funds.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.
Elections relating to retirement coverage (sec. 1043)
The House bill contained a provision (sec. 338) that would
increase the number of employees eligible to transfer between
nonappropriated fund and appropriated fund morale, welfare,
recreation programs without significant loss of benefits.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would provide for
portability of retirement benefits by allowing: (1) election
by employees of the nonappropriated fund or the Federal
Employees Retirement System; (2) credit for years of service
either as a nonappropriated fund employee or a civil service
employee; (3) government-wide eligibility; and (4)
creditability of nonappropriated fund service for reduction-
in-force purposes.
Extension of temporary authority to pay civilian employees
with respect to the evacuation from Guantanamo, Cuba
(sec. 1044)
The Senate amendment contained a provision (sec. 334) that
would extend the authorization for the Navy to continue to
pay evacuation allowances until January 31, 1996 to civilian
employees whose dependents were evacuated from Guantanamo,
Cuba, in August and September 1994. The provision would also
require a monthly report which would include the actions that
the Secretary of the Navy is taking to eliminate the
conditions making the payments necessary.
The House bill contained no similar provision.
The House recedes.

Subtitle E--Miscellaneous Reporting Requirements

Report on budget submission regarding reserve components
(sec. 1051)
The Senate amendment contained a provision (sec. 1007) that
would require the Secretary of Defense to submit a report
that describes measures taken within the Department of
Defense to ensure that the reserve components are
appropriately funded, and, for fiscal year 1997, lists the
major weapons and items of equipment, as well as, the
military construction projects provided for the National
Guard and Reserves.
The House bill included no similar provision.
The House recedes with an amendment.
The conferees agree to a provision that would require the
report included in the original Senate provision, and would
require the Secretary of Defense to display in all future-
years defense programs the amounts requested for procurement
of equipment and military construction for each of the
reserve components.
Report on desirability and feasibility of providing authority
for use of funds derived from recovered losses resulting
from contractor fraud (sec. 1052)
The Senate amendment contained a provision (sec. 382) that
would allow the secretary of a military department to receive
an allocation from funds recovered in contractor fraud cases,
for use by installations that carried out or supported
investigations or litigation involving contractor fraud.
The House bill contained no similar provision.
The House recedes with an amendment that would require the
Secretary of Defense to report on the desirability and
feasibility of authorizing the retention and use of a portion
of such recovered amounts.
Review of national policy on protecting the national
information infrastructure against strategic attack (sec.
1053)
The Senate amendment contained a provision (sec. 1097) that
would require the President to submit a report that would set
forth the national policy and architecture governing plans to
protect the national information infrastructure against
strategic attack.
The House bill contained no similar provision.
The House recedes.
The conferees intend that the President rely, to the
maximum extent practicable, on the executive agent for the
national communications system in the preparation and
submission of the report.
Report on Department of Defense boards and commissions (see
1054)
The Senate amendment contained a provision (sec. 1084) that
would require the Department of Defense to prepare a report
listing certain boards and commissions. The Department would
be required to indicate whether each board or commission
merits continued support.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Change in reporting date (sec. 1055)
The Senate amendment contained a provision in its
classified annex that would change the date that the
Department of Defense is required to submit annually its
budget materials for Special Access Programs, from February 1
to March 1.
The House bill contained no similar provision.
The House recedes.

Subtitle F--Repeal of Certain Reporting and Other Requirements and
Authorities

Miscellaneous provisions of law (sec. 1061)
The House bill contained a provision (sec. 1032) that would
repeal numerous provisions of law that have expired or are
obsolete, or that were inconsistent with other provisions
recommended by the House.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would retain
portions of the suggested deletions.
Reports required by Title 10, United States Code (sec. 1062)
The Senate amendment contained seven provisions (secs.
1071-1077) that would delete a total of 67 reports currently
required of the Department of Defense.
The House bill contained no similar provision.
The House recedes with an amendment that would retain
several of the reporting requirements.

Subtitle G--Department of Defense Education Programs

Continuation of the Uniformed Services University of the
Health Sciences (sec. 1071)
The House bill contained a provision (sec. 907) that would
require the Secretary of Defense to budget for ongoing
operations at the Uniformed Services University of the Health
Sciences.
The Senate amendment contained a similar provision (sec.
1031) that would reaffirm the prohibition of the closure of
the University, and establish minimum staffing levels.
The House recedes with a clarifying amendment.
Additional graduate schools and programs at the Uniformed
Services University of the Health Sciences (sec. 1072)
The Senate amendment contained a provision (sec. 1032) that
would authorize additional graduate schools and programs at
the Uniformed Services University of the Health Sciences.
This provision would permit the Board of Regents to establish
a graduate school of nursing at the University.
The House bill contained no similar provision.
The House recedes.
Funding for adult education programs for military personnel
and dependents outside the United States (sec. 1073)
The Senate amendment contained a provision (sec. 1033) that
would authorize appropriations for the military continuing
education programs of the armed services, and for adult
members of military families stationed or residing outside
the United States.
The House bill contained no similar provision.
The House recedes with a technical amendment.

[[Page H671]]

Assistance to local educational agencies that benefit
dependents of members of the armed forces and Department
of Defense civilian employees (sec. 1074)
The House bill contained a provision (sec. 394) that would
authorize the appropriation of $58.0 million for assistance
to local educational agencies in areas where there is an
impact to school systems caused by dependents of members of
the armed forces and Department of Defense (DOD) civilians.
The Senate amendment contained a provision (sec. 387) that
would prohibit the Secretary of Education from considering
payments to a local educational agency from DOD funds when
determining the amount of impact aid to be paid from
Department of Education funds. Additionally, the recommended
provision would make technical changes to the previous year
authorizations of impact aid.
The conferees agree to combine and clarify the two
provisions and to change the authorized funding to $35.0
million.
Sharing of personnel of Department of Defense domestic
dependent schools and defense dependents' education
system (sec. 1075)
The Senate amendment contained a provision (sec. 335) that
would authorize the Secretary of Defense to direct the
sharing of personnel resources between the Department of
Defense Overseas School System and the Defense Dependents'
Education System, and to provide other support services to
either system, for a period to be prescribed by the
Secretary.
The House bill contained no similar provision.
The House recedes with a technical amendment.
Increase in reserve component Montgomery GI Bill educational
assistance allowance with respect to skills or
specialties for which there is a critical shortage of
personnel (sec. 1076)
The House bill contained a provision (sec. 553) that would
authorize increased rates of educational assistance allowance
for reserve members with specialties or skills in which there
are critical shortages.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would expand the
authority to include certain former active duty personnel
with critical specialties or skills who become members of a
selected reserve unit.
Date for annual report on reserve component Montgomery GI
Bill educational assistance program (sec. 1077)
The Senate amendment contained a provision (sec. 1035) that
would change the date on which the annual report on selected
reserve educational assistance program is due to the
Congress, from December 15 to March 1 of each year.
The House bill contained no similar provision.
The House recedes.
Scope of the education programs of Community College of the
Air Force (sec. 1078)
The Senate amendment contained a provision (sec. 1034) that
would amend section 9315 of title 10, United States Code, to
limit the scope of the Community College of the Air Force
(CCAF) to Air Force personnel.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
The conferees do not consider expanding the CCAF as an
appropriate means of establishing a defense-wide community
college. If the Secretary of Defense believes that
establishment of a defense-wide community college is
appropriate, he should forward such a recommendation,
complete with justification, to the Congress.
Amendments to education loan repayment programs (sec. 1079)
The House bill contained a provision (sec. 554) that would
authorize the repayment of loans that were made under the
William D. Ford Federal Direct Loan Program.
The Senate amendment contained no similar provision.
The Senate recedes.

Subtitle H--Other Matters

Termination and modification of authorities regarding
national defense technology and industrial base, defense
reinvestment, and defense conversion programs (sec. 1081)
The House bill contained a provision (sec. 1031) that would
repeal portions of chapter 148 of title 10, United States
Code, that would establish authorities similar to those
provided elsewhere in law.
The Senate amendment contained a similar provision (sec.
221).
The conferees agree to a provision that would adopt both
House and Senate provisions, with an amendment. The conferees
have included a provision that would repeal subsection 2501
(b) and sections 2512, 2513, 2516, 2520, 2521, 2522, 2523,
and 2524 of title 10, United States Code. The provision would
also amend section 2525 of title 10, United States Code, by
adding a series of guidelines to the requirement for the
preparation of the manufacturing science and technology
master plan. Finally, the conferees have included language
that would modify the defense dual-use critical technology
program authorized by section 2511 of title 10, United States
Code. In using the authority under this section, the
conferees expect the Secretary of Defense to give equal
consideration to the development of both product and process
technologies.
Ammunition industrial base (sec. 1082)
The Senate amendment contained a provision (sec. 823) that
would require the Secretary of Defense to review ammunition
procurement and management programs and report the findings
to the congressional defense committees by April 1, 1996.
The House bill contained no similar provision.
The House recedes.
Policy concerning excess defense industrial capacity (sec.
1083)
The House bill contained a provision (sec. 1033) that would
prohibit the use of appropriated funds for capital investment
in, or the development and construction of, a government-
owned, government-operated defense industrial facility unless
the Secretary of Defense certifies to Congress that no
similar capability or minimally used capability exists in
another similar facility.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment.
Sense of Congress concerning access to secondary school
student information for recruiting purposes (sec. 1084)
The Senate amendment contained a provision (sec. 1091) that
would express the sense of the Senate that educational
institutions, including secondary schools, should not deny
military recruiters the same access to their campuses and
directory information that is allowed other employers.
The House bill contained no similar provision.
The House recedes with an amendment expressing the sense of
Congress.
Disclosure of information concerning unaccounted for United
States personnel from the Korean Conflict, the Vietnam
Era and the Cold War (sec. 1085)
The conference agreement includes a provision that would
modify section 1082 of the National Defense Authorization Act
for Fiscal Years 1992 and 1993 (Public Law 102-190) to change
the criteria under which limitations to disclosure of
information concerning United States personnel classified as
prisoner of war or missing in action during the Vietnam
conflict would not apply and to change the date by which a
report is required to be delivered to the Congress.
Operational support airlift aircraft fleet (sec. 1086)
The Senate amendment contained a provision (sec. 1099E)
that would require the Secretary of Defense to submit a Joint
Chiefs of Staff report on operational support aircraft (OSA)
to the congressional defense committees, and to reduce the
flying hours of such aircraft in fiscal year 1996.
The House bill contained no similar provision.
The House recedes with an amendment that would require the
Secretary to examine central scheduling and management of
such aircraft in the report.
The conferees believe that the review of OSA operations
should focus on savings and scheduling rationalization. The
conferees believe that the Department of Defense can achieve
efficiencies by revamping the current OSA program, and have
included a reduction in OSA flying hours for fiscal year 1996
in this provision.
While prior studies of OSA organization have recommended
realigning OSA management, the conferees refrain from
directing the Department to make specific organizational
changes at this time.
Civil Reserve Air Fleet (sec. 1087)
The House bill contained a provision (sec. 387) that would
clarify the conditions under which a contractor under the
Civil Reserve Air Fleet program is required to commit
aircraft for use by the Department of Defense.
The Senate amendment contained a similar provision (sec.
814).
The House recedes.
Damage or loss to personal property due to emergency
evacuation or extraordinary circumstances (sec. 1088)
The Senate amendment contained a provision (sec. 1087) that
would provide for an increased level of reimbursement for
claims that arise from emergency evacuations or extraordinary
circumstances. The new limits would be retroactive to June 1,
1991.
The House contained no similar provision.
The House recedes with an amendment that would provide for
retroactive application of the increased level of
reimbursement when certain conditions are met.
Authority to suspend or terminate collection actions against
deceased members (sec. 1089)
The Senate amendment contained a provision (sec. 1086) that
would amend section 3711 of title 31, United States Code, to
authorize the Secretary of Defense to suspend or terminate
collection action against the estates of service members who
die on active duty while indebted to the government.
The House bill contained no similar provision.
The House recedes.
Check cashing and exchange transactions for dependents of
United States Government personnel (sec. 1090)
The Senate amendment contained a provision (sec. 1088) that
would authorize United States disbursing personnel to extend
check-cashing and currency exchange services to

[[Page H672]]
the dependents of military and civilian personnel at government
installations that do not have adequate banking facilities.
The House bill contained no similar provision.
The House recedes with a technical amendment.
National Maritime Center (sec. 1091)
The Senate amendment contained a provision (sec. 1099D)
that would designate the Nauticus building, located at one
Waterside Drive, Norfolk, Virginia, as the National Maritime
Center.
The House bill contained no similar provision.
The House recedes.
Sense of Congress regarding historic preservation of Midway
Islands (sec. 1092)
The Senate amendment contained a provision (sec. 1099b)
that would express the sense of the Senate that Midway Island
be memorialized and the historic structures relating to the
Battle of Midway be maintained in accordance with the
National Historic Preservation Act.
The House bill contained no similar provision.
The House recedes with an amendment that would make the
provision a Sense of the Congress.
Sense of the Senate regarding federal spending (sec. 1093)
The Senate amendment contained a provision (sec. 1095) that
would express a sense of the Senate regarding federal
spending.
The House bill contained no similar provision.
The House recedes.
Extension of authority for vessel war risk insurance (sec.
1094)
The conferees agree to a new provision that would amend
section 1214 of the Merchant Marine Act, 1936 (46 App. U.S.C.
1294) to extend the Secretary of Transportation's authority
to provide insurance against loss or damage as a result of
marine war risks from June 30, 1995 to June 30, 2000. The
conferees acknowledge the cooperation of the Committee on
Commerce, Science, and Transportation of the Senate, the
committee of jurisdiction in the Senate, for permitting
inclusion of this important authority in the National Defense
Authorization Act for Fiscal Year 1996.

legislative provisions not adopted

Application of Buy America Act principles
The House bill contained a provision (sec. 1035) that would
apply Buy American principles to reciprocal defense
procurement memoranda of understanding with other countries.
The Senate amendment contained no similar provision.
The House recedes.
The conferees note that section 849 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 103-160)
contains identical language that is the operative law in this
area.
Repeal of requirements for part-time career opportunity
employment reports
The Senate amendment contained a provision (sec. 339) that
would eliminate the requirement in section 3407 of title 5,
United States Code, that agencies provide progress reports on
the part-time career employment program.
The House bill contained no similar provision.
The Senate recedes.
Holidays for employees whose basic work week is other than
Monday through Friday
The Senate amendment contained a provision (sec. 342) that
would amend section 6103(b)(2) of title 5, United States
Code, to authorize agencies some discretion in designating
holidays for employees whose basic work week is other than
Monday through Friday.
The House bill contained no similar provision.
The Senate recedes.
Assistance to Customs Service
The Senate amendment included a provision (sec. 1023) that
would authorize the Department of Defense to procure or
transfer funds to the Customs service for procurement of non-
intrusive inspection devices for use at the ports of entry on
the southwest border of the United States.
The House bill contained no similar provision.
The Senate recedes. The conferees agree, as stated
elsewhere in this statement of managers, to urge the
Secretary of Defense to procure non-intrusive inspection
devices with funds available through reprogramming
procedures.
Establishment of Junior ROTC units in Indian reservation
schools
The Senate amendment contained a provision (sec. 1036) that
would express the Sense of the Congress that secondary
schools on Indian reservations be afforded full opportunity
to be selected as locations for establishing new Junior
Reserve Officers' Training Corps units.
The House bill contained no similar provision.
The Senate recedes.
The conferees agree that current law affords full
opportunity for secondary schools on Indian reservations to
be selected as locations for establishing new Junior Reserve
Officers' Training Corps units.
Defense cooperation between the United States and Israel
The Senate amendment contained a provision (sec. 1055) that
would express the Sense of Congress for continued cooperation
between the United States and Israel in military and
technical areas.
The House bill contained no similar provision.
The Senate recedes. The conferees note that a provision
virtually identical to that contained in the Senate amendment
exists in the National Defense Authorization Act for Fiscal
Year 1995 (Public Law 103-337). The conferees recognize the
numerous benefits to the United States resulting from our
strategic relationship with Israel. The conferees strongly
commend the United States' continuing commitment to
maintaining Israel's qualitative edge over any combination of
adversaries. Despite the great progress made in the Middle
East peace process, Israel continues to face an unstable and
highly dangerous environment, compounded by the proliferation
of weapons of mass destruction and ballistic missiles.
International military education and training
The Senate amendment contained a provision (sec. 1058) that
would, subject to the provisions of the Foreign Assistance
Act of 1961, grant discretionary authority to the Secretary
of Defense to provide up to $20.0 million for the provision
of international military education and training (IMET) for
countries allied and friendly with the United States.
The House bill contained no similar provision.
The Senate recedes.
The conferees strongly support Department of Defense
funding for and management of the IMET program. IMET is a
unique military program that fosters military-to-military
relationships and contributes to greater inter-operability
and coalition-building with the military organizations of
allied and friendly nations. IMET has suffered in recent
years from being part of the State Department's budget which
has become increasingly unpopular with the American public
and their elected representatives. The conferees are pleased
to note, however, that the Foreign Operations Appropriations
Conference Report for Fiscal Year 1996 fully funds the
administration's IMET request.
The conferees intend to address this matter next year with
a view towards transferring budgetary and execution
responsibility for IMET to the Department of Defense.
Accordingly, the conferees encourage the Secretary of Defense
and the Secretary of State to work out a process for such a
transfer to ensure smooth and effective functioning with
robust future funding.
Sense of the Senate on protection of United States from
ballistic missile attack
The Senate amendment contained a provision (sec. 1062) that
would express the Sense of the Senate that all Americans
should be protected from accidental, intentional, or limited
ballistic missile attack, and that front line troops of the
United States should be protected from missile attacks. The
Senate provision would also provide funding for the Corps
surface-to-air missile (SAM) program.
The House bill contained no similar provision.
The Senate recedes. Although the conferees fully support
the views expressed in the Senate provision, they believe
that such views are adequately represented elsewhere in the
conference report. The conferees also address the Corps SAM
issue elsewhere in the conference report.
Travel of disabled veterans on military aircraft
The Senate amendment contained a provision (sec. 1089) that
would permit veterans eligible for compensation for a
service-connected disability the same entitlement to space-
available transportation as retired members of the Armed
Forces.
The House bill contained no similar provision.
The Senate recedes.
The conferees note the unreliable nature of space-available
flight, and that such flights would normally involve cargo-
type aircraft, which are not equipped for handicapped access,
seating and care. The conferees agree that concerns for the
safety of disabled veterans were overriding in this decision.
Transportation of crippled children in the Pacific Rim region
to Hawaii for medical care
The Senate amendment contained a provision (sec. 1090) that
would authorize the Secretary of Defense to permit space-
available transportation of crippled children in the Pacific
Rim region to Hawaii for medical care in non-military medical
facilities.
The House bill contained no similar provision.
The Senate recedes.
The conferees direct the Secretary of Defense to conduct a
study, consulting with the Shriners Hospitals in the Pacific
region, to determine the viability and potential liabilities
of such a program. The report should be provided to the
Senate Committee on Armed Services and the House Committee on
National Security not later than May 1, 1996.
Sense of Senate regarding Ethics Committee investigations
The Senate amendment contained a provision (sec. 1094)
expressing the Sense of the Senate concerning proceedings
before the Senate Ethics Committee with respect to Senator
Packwood.
The House bill contained no similar provision.

[[Page H673]]

The Senate recedes.

Title XI--Uniform Code of Military Justice

LEGISLATIVE PROVISIONS

LEGISLATIVE PROVISIONS ADOPTED

References to Uniform Code of Military Justice (sec. 1102)
The House bill contained a provision (sec. 541) that would
clarify references to the Uniform Code of Military Justice in
the bill.
The Senate amendment contained an identical provision (sec.
521).
The conference agreement includes this provision.

Subtitle A--Offenses

Refusal to testify before courts-martial (sec. 1111)
The Senate amendment contained a provision (sec. 524) that
would provide Federal District Courts the same power to
punish individuals who fail to appear at courts-martial as
they currently have to punish individuals who do not appear
in civilian cases.
The House bill contained no similar provision.
The House recedes.
Flight from apprehension (sec. 1112)
The House bill contained a provision (sec. 544) that would
make it clear that the offense of ``resisting apprehension''
under Article 95 of the Uniform Code of Military Justice
includes flight from apprehension.
The Senate amendment contained an identical provision (sec.
531).
The conference agreement includes this provision.
Carnal knowledge (sec. 1113)
The Senate amendment contained a provision (sec. 532) that
would amend Article 120(b) of the Uniform Code of Military
Justice (10 U.S.C. 920 (b)) by making the crime of carnal
knowledge gender neutral, bringing Article 120 into
conformance with the Sexual Abuse Act of 1986. The provision
also would add an affirmative defense of mistake of fact to
conform Article 120 to federal civilian law (18 U.S.C. 2243).
The House bill contained a similar provision (sec. 545).
The House recedes.

Subtitle B--Sentences

Effective date for forfeitures of pay and allowances and
reductions in grade by sentence of court-martial (secs.
1121 and 1122)
The Senate amendment contained provisions (secs. 526(a) and
526(b)) that would require those portions of a court-martial
sentence extending to forfeiture of pay and allowances or
reduction in grade to be effective 14 days after the date the
sentence is adjudged or upon approval by the convening
authority, whichever occurs earlier. The amendment would also
require that sentences containing a punitive discharge,
death, or more than 6 months confinement, result in total
forfeitures of pay and allowances. If an accused were to make
application to the convening authority, the forfeitures of
pay and allowances, or reduction in grade or both could be
deferred until the date on which the sentence is approved.
Also under this provision, when convening authorities take
action on sentences, any or all of the forfeitures of pay and
allowances to be forfeited could be used to provide
transitional compensation for the dependents of the accused.
The House bill contained a similar provision (sec. 542).
The House recedes with an amendment which would apply the
automatic forfeitures to a sentence of death, punitive
discharge, or confinement in excess of six months. The
forfeiture in the case of a special court-martial would be
limited to two-thirds of the pay due, which is the maximum
punishment limitation of a special court-martial.
Deferment of confinement (sec. 1123)
The Senate amendment contained a provision (sec. 527) that
would allow for the deferment of confinement adjudged by
courts-martial in two situations beyond those authorized
under current law. One would permit deferment of confinement
while the case is being reviewed by the United States Court
of Appeals for the Armed Forces under Article 67(a)(2). The
other circumstance that would lead to deferment concerns
individuals who are serving civilian confinement while they
have a sentence pending that has been adjudged by a court-
martial. The Senate amendment would defer the running of the
court-martial sentence until completion of the civilian
sentence, if the convening authority so directs.
The House bill contained no similar amendment.
The House recedes.

Subtitle C--Pretrial and Post-Trial Actions

Article 32 investigations (sec. 1131)
The Senate amendment contained a provision (sec. 523) that
would revise the procedures for authorizing investigation of
misconduct uncovered during a pretrial investigation under
Article 32 of the Uniform Code of Military Justice.
The House bill contained no similar provision.
The House recedes. Under Article 32 of the Uniform Code of
Military Justice, a formal pretrial investigation is
conducted when a court-martial convening authority refers
charges to an Article 32 investigating officer. Under current
law, if the Article 32 officer uncovers evidence of
additional misconduct in the course of the investigation, the
information must be provided to the convening authority and
then referred back to the Article 32 officer before it can be
investigated by the Article 32 investigating officer.
The conferees agree that current law should be changed to
permit the investigating officer to investigate new
misconduct uncovered during the Article 32 investigation
without requiring further administrative action by the
convening authority. This change should reduce the time,
delay, and administrative burden associated with obtaining
the convening authority's approval for investigation of
additional misconduct. The conferees emphasize, however, that
the additional misconduct may not be investigated under
Article 32 unless the accused is afforded the same rights as
under current law with respect to investigation of the
charges, presentation of evidence in defense or mitigation,
and cross-examination as apply to the charges that were the
basis of the Article 32 investigation.
Submission of matters to the convening authority for
consideration (sec. 1132)
The Senate amendment contained a provision (sec. 528) that
would require all post-trial material submitted to the
convening authority by the accused to be in writing. Current
law does not specify the medium for such submissions.
The House bill contained no similar provision.
The House recedes. The conferees agree that the intent of
this section is not to restrict the accused's communications
with the convening authority, but to ensure that formal
submissions under Article 60(b) are made through a standard
medium. The convening authority, in his or her discretion,
may take into consideration other communications by the
accused, such as a personal appearance or a videotape. The
convening authority, however, is not required to review such
other matters under Article 60, and a convening authority's
decision to refuse consideration of matters other than
written submissions is not subject to review. The conferees
direct the Secretary of Defense to ensure that the
explanatory ``Discussion'' accompanying the Manual for
Courts-Martial reflect that this amendment does not restrict
the ability of the convening authority to consider
communications from the accused that are not written
submissions.
Commitment of accused to treatment facility by reason of lack
of mental capacity or mental responsibility (sec. 1133)
The Senate amendment contained a provision (sec. 525) that
would establish procedures for handling individuals who are
mentally incompetent to stand trial or found not guilty by
reason of lack of mental responsibility.
The House bill contained no similar provision.
The House recedes.
This provision is in no way intended to conflict with Rule
706 of the Rules for Courts-Martial. To the extent that there
is a provisions overlap, section 706 should be reviewed to
make certain that it conforms with the new provision.

Subtitle D--Appellate Matters

Appeals by the United States (sec. 1141)
The Senate amendment contained a provision (sec. 530) that
would apply to courts-martial the same protections with
regard to classified information as apply to orders or
rulings issued in Federal District Courts under the
Classified Information Procedures Act (18 U.S.C. App. 7).
This section incorporates Senate amendment section 522
concerning certain definitions.
The House bill contained no similar provision.
The House recedes with an amendment.
Repeal of termination of authority for Chief Justice of
United States to designate Article III judges for
temporary service on Court of Appeals for the Armed
Forces. (sec. 1142)
The House bill contained a provision (sec. 549) that would
make permanent the authority of the Chief Justice of the
United States to fill temporary vacancies on the United
States Court of Appeals for the Armed Forces. Section 1301 of
the National Defense Authorization Act for Fiscal Years 1990
and 1991 authorized the Chief Judge of the United States
Court of Appeals for the Armed Forces to request the Chief
Justice to make such appointments through September 30, 1995.
This provision would eliminate the ``sunset'' provision.
The Senate amendment contained a similar provision (sec.
535).
The Senate recedes.

Subtitle E--Other Matters

Advisory committee on criminal law jurisdiction over
civilians accompanying the Armed Forces in time of armed
conflict (sec. 1151)
The Senate amendment contained a provision (sec. 536) that
would create an advisory panel to determine which courts
should have criminal jurisdiction over civilians accompanying
the military outside the United States during times of armed
conflict, including conflicts other than a declared war.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Time after accession for initial instruction in the Uniform
Code of Military Justice (sec. 1152)
The House bill contained a provision (sec. 546) that would
increase the time after accession for initial instruction in
the Uniform Code of Military Justice.

[[Page H674]]

The Senate amendment (sec. 533) contained an identical
provision.
The conference agreement includes this provision.
Technical amendment (sec. 1153)
The House bill contained a provision (sec. 550) that would
amend article 66(f) of the Uniform Code of Military Justice
(10 U.S.C. 866) by striking out ``Courts of Military Review''
in both places it appears, and inserting in lieu thereof
``Courts of Criminal Appeals.''
The Senate amendment contained an identical provision (sec.
534).
The conference agreement includes this provision.

legislative provisions not adopted

Persons who may appear before the United States Court of
Appeals for the Armed Forces
The House bill contained a provision (sec. 547) that would
provide that only attorneys and properly certified law
students could practice and appear before the United States
Court of Appeals for the Armed Forces.
The Senate amendment contained no similar provision.
The House recedes. The conferees believe that the question
of who should be authorized to appear before the Court of
Appeals for the Armed Forces normally should be addressed
through the rules promulgated by the court, rather than
through legislation. The conferees are concerned, however,
that the Court has permitted undergraduate students to appear
before the Court as amicus curiae. However laudable it may be
to afford such students practical experience appearing before
a federal court, the conferees believe such considerations
are outweighed by the requirement that the Court of Appeals
for the Armed Forces maintain the highest standards of
judicial practice and procedure. The conferees are aware that
the Court presently has this matter under review and look
forward to a change in the Court's rules of procedure that
will obviate the need for legislation on this subject.
Discretionary representation by government appellate defense
counsel in petitioning the Supreme Court for writ of
certiorari
The House bill contained a provision (sec. 548) that would
amend section 870 of title 10, United States Code, to provide
that representations of an accused, in the preparation of a
petition for a writ of certiorari before the United States
Supreme Court, shall be at the discretion of military
appellate defense counsel. Current law requires appellate
defense counsel to represent the accused before the Supreme
Court when requested by the accused.
The Senate amendment contained no similar provision.
The House recedes.
Proceedings in revision
The Senate amendment contained a provision (sec. 529) that
would authorize a proceeding in revision at courts-martial
prior to authentication of the record under certain
conditions.
The House bill contained no similar provision.
The Senate recedes.

Title XII--Cooperative Threat Reduction With States of Former Soviet
Union

legislative provisions

legislative provisions adopted

Cooperative threat reduction program (secs. 1201-1209)
The budget request included $371.0 million in defense
operation and maintenance for the Cooperative Threat
Reduction (CTR) Program.
The House bill contained provisions (secs. 1101-1108)
related to the CTR program that would include the following:
authorize $200.0 million for the CTR program, a $171.0
million reduction to the budget request (sec. 1101); place
specific limitations on all CTR programs for fiscal year 1996
(sec. 1102); repeal authority for the Demilitarization
Enterprise Fund (DEF) (sec. 1103); prohibit the use of CTR
funds for peacekeeping exercises and related activities with
Russia (sec. 1104); revise authority for assistance for
weapons destruction (sec. 1105); require prior notice of
obligation of funds (sec. 1106); require an annual
accountability report to ensure that assistance is being used
for its intended purpose (sec. 1107); and prohibit the
obligation or expenditure of fiscal year 1996 funds until the
President provides written certification to Congress that
Russia has terminated its offensive biological weapons
program.
The Senate amendment included several provisions (sec.
1041-1044) related to the CTR program that would include the
following: authorize $365.0 million for the CTR program, a
$6.0 million reduction to the budget request (sec. 1041);
limit the obligation of CTR funds that would assist nuclear
weapons scientists in the former Soviet Union, pending a
written certification from the Secretary of Defense that
funds would not contribute to the modernization of strategic
nuclear forces or for research, development or production of
weapons of mass destruction (sec. 1042); limit the obligation
of $50.0 million, pending a written certification from the
President that Russia is in compliance with its obligations
under the Biological Weapons Convention (BWC); and limit the
use of more than $52.0 million of fiscal year 1996 funds
available for CTR, pending a presidential certification that
a joint laboratory study to evaluate the Russian
neutralization proposal has been completed and the United
States agrees with that proposal, that Russia is in the
process of preparing a comprehensive destruction and
dismantlement plan for its chemical weapons stockpile, and
that Russia is committed to resolving outstanding issues
under the 1989 Wyoming Memorandum of Understanding and the
1990 Bilateral Destruction Agreement.
The conferees agree to the CTR provisions, as follows:
authorize $300.0 million in fiscal year 1996 for CTR and
place limitations on the CTR projects in fiscal year 1996;
provide authority for individual limitations to be exceeded
by a specified percentage; authorize use of CTR funds to
reimburse pay accounts for U.S. military reserve members
participating in CTR activities; prohibit the use of CTR
funds for peacekeeping activities and related activities with
Russia; require a presidential determination that each
recipient country is observing the criteria for assistance
provided under the CTR program; require the Secretary of
Defense to provide congressional defense committees with
advance notification of obligation of funds; require an
annual audit and examination report; limit assistance to
nuclear weapons scientists; and limit the obligation of $60.0
million in fiscal year 1996 CTR funds for Russia, pending
presidential certification that Russia is complying with its
BWC obligations and that Russia has agreed to, and
implemented, agreements and visits per the September 14, 1992
Joint Statement on Biological Weapons and that visits to the
four declared military biological facilities of Russia by
officials of the U.S. and United Kingdom have occurred. If
the President is unable to certify Russian compliance with
its BWC obligations, or that visits agreed to under the Joint
Statement have not occurred, he may certify that fact and
related funds would then be available for strategic offensive
weapons elimination in Ukraine, Kazakhstan or Belarus. The
provision would also prohibit obligation of more than half
the funds authorized for chemical weapons destruction-related
activities in Russia, pending a presidential certification.
The conferees direct that none of the funds authorized for
CTR in fiscal year 1996 may be used to reimburse other
departments and agencies for the travel and other expenses
incurred by employees of those departments and agencies, even
if those employees are engaged in CTR-related activities.
The Conventional Forces in Europe (CFE) Treaty requires
signatories to be in full compliance with their obligations
to reduce treaty limited equipment by November 16, 1995. The
Russian government has generally been in overall compliance
with its obligations since the treaty has been in force
provisionally. Russia's compliance with the limits in the
northern and southern flank zones has caused concern for a
number of the signatories. Russian officials have indicated
that they will not be in compliance with the flank limits in
these zones because of the instability along their southern
borders.
If Russia refuses to honor its legal and political
obligations under the CFE Treaty, the conferees question the
ability of the President to certify Russia's commitment to
complying with its arms control obligations, necessary to
make it eligible to receive CTR assistance. Further, the
conferees believe that the President would only be in a
position to certify Russia's commitment to comply with its
arms control obligations under the following circumstances:
(1) through an agreement to comply with a NATO-endorsed flank
limit proposal and substantial progress toward withdrawing
any excess equipment by the May 1996 Treaty Review
Conference; (2) demonstrated fulfillment of obligations to
meet agreed-upon reductions in levels of military equipment
in the naval infantry and coastal defense forces, and in
holdings east of the Ural mountains; and (3) through an
agreement on an offset package that would add to the flank
limit proposal additional verification measures, additional
information sharing arrangements on the flank areas, and
additional constraints on Treaty-limited equipment contained
in areas formerly defined as flank areas.

Title XIII--Matters Relating to Other Nations

Items of Special Interest

Waiver of foreign assistance reimbursement requirements to
the Department of Defense and the armed forces
The conferees are concerned about the inadequate funding in
the fiscal year 1996 international affairs budget for
activities identified by the administration as presidential
priorities, such as drawdown authority for defense articles
and services for Jordan and the transfer of non-lethal
defense articles to Central European countries.
While the conferees are generally supportive of both
activities, the conferees do not support efforts to waive
requirements under Sections 519(f) and 632(d) of the Foreign
Assistance Act of 1961. Those provisions of the Foreign
Assistance Act require reimbursement of the Department of
Defense and military services for costs to transport defense
articles, or replace defense items that are not excess to the
military services.
The conferees appreciate the role that Jordan played in the
Middle East peace process and believe that the Government of
Jordan should have the defense items, services, and military
training, that would enable them to protect their borders and
respond to terrorist threats. However, the conferees are
concerned by the use of defense funds to pay for this
authority.

[[Page H675]]

In a letter supporting the special drawdown authority for
Jordan, the Secretary of Defense stated that military
readiness would suffer unless the non-excess defense items
are replaced and the military services are reimbursed for
transportation and other costs. The conferees direct the
Secretary of Defense to provide a report to the congressional
defense committees 60 days after enactment of this Act that
would address the cost to replace non-excess defense items
provided to Jordan and an identification of funds included in
the President's fiscal year 1997 budget for this purpose.

legislative provisions

legislative provisions adopted

Subtitle A--Peacekeeping Provisions

Limitation on use of Department of Defense funds for
international peacekeeping assessments and drawdown of
Department of Defense articles (sec. 1301)
The House bill contained a provision (sec. 1202) that would
amend chapter 20 of title 10, United States Code, to prohibit
the use of Department of Defense funds for voluntary or
assessed financial contributions to the United Nations for
the United States share of peacekeeping costs, effective
October 1, 1995.
The Senate amendment contained no similar provision.
The Senate recedes.

Subtitle B--Humanitarian Assistance Programs

Overseas humanitarian, disaster, and civic aid (secs. 1311-
1312)
The House bill contained a provision (sec. 1211) that would
specify five programs operated by the Department of Defense
to be funded through the budget account known as Overseas
Humanitarian, Disaster, and Civic Aid (OHDACA).
The House bill also contained a provision (sec. 1212) that
would eliminate the current authority to transfer funds from
DOD to the Department of State to provide for the
administrative costs associated with the transportation of
humanitarian supplies. In addition, this provision would
remove the Secretary of State's authority over the DOD's
program for the transportation of humanitarian relief, and it
would provide for technical changes to the existing reporting
requirements for the DOD's humanitarian programs.
The Senate amendment contained a provision (sec. 365) that
would require the General Accounting Office (GAO) to submit a
report to Congress on existing funding mechanisms that would
facilitate the funding of programs within the OHDACA account
through the Department of State or the Agency for
International Development. If such mechanisms do not
currently exist, the GAO would be required to identify those
actions necessary to institute such mechanisms.
The conference agreement includes these provisions.
The conferees agree that although the DOD is uniquely
capable of performing some humanitarian or disaster relief
operations, these operations are fundamentally the
responsibility of the Department of State and the Agency for
International Development and, in general, are more
appropriately funded through these agencies. Therefore, the
conferees have reduced the amount of DOD funds available to
the OHDACA account for fiscal year 1996 and have requested
that the GAO provide a report that would identify necessary
changes in existing law or regulations to transfer the
funding responsibility for these programs, where appropriate,
to other federal agencies, beginning in fiscal year 1997.
Landmine clearance program (sec. 1313)
The House bill contained a provision (sec. 1213) that would
amend humanitarian and civic assistance authorities in
section 401 of title 10 United States Code to include
humanitarian demining activities.
The Senate amendment contained a provision (sec. 1054) that
would amend section 1413 of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103-337)
to include the following: require the Secretary of Defense to
certify to the Congress that humanitarian activities satisfy
military training requirements for the personnel involved;
authorize $20.0 million in fiscal year 1996 for the
humanitarian landmine clearing assistance program; terminate
authority for the Department of Defense to provide funds for
the humanitarian landmine clearing assistance program after
fiscal year 1996; and revise the definition of a landmine.
The conferees agree to a provision that would amend section
401 of title 10 United States Code to include humanitarian
demining activities; limit activities of United States
military personnel participating in humanitarian landmine
clearing activities; and, repeal section 1413 of the National
Defense Authorization Act for Fiscal Year 1995 (Public Law
103-337).
Unlike other types of humanitarian and civic assistance
activities, the conferees realize that the activities of
detection and clearing of landmines will often be the sole or
primary focus of the military operation in question. In such
cases, the approving authority would have to determine that
the specific operational readiness skills of the
participating United States forces--usually special
operations forces whose skills are based upon the activities
listed in section 167(j) of title 10, United States Code--
will be promoted by participation in those activities.

Subtitle C--Arms Export and Military Assistance

Defense export loan guarantees (sec. 1321)
The House bill contained a provision (sec. 1224) that would
require the Secretary of Defense to create a defense export
loan guarantee program for certain eligible countries.
The Senate amendment contained a similar provision (sec.
1053) with different criteria for eligible countries.
The House recedes with an amendment that would authorize
use of fees generated under the program for payment of start-
up costs for administration of the program and for payment of
ongoing administrative expenses. The conferees intend to
monitor the administration of this program closely to ensure
that the method of funding the administrative fees does not
impact the process of approval of the loan guarantees.
National security implications of United States export
control policy (sec. 1322-1323)
The Senate amendment contained a provision (sec. 1052) that
would express the sense of Congress regarding the national
security implications of maintaining effective export
controls on dual-use items and technologies that are critical
to the military capabilities of the United States. This
provision would require the Department to review export
licenses for class 2, 3, and 4 biological pathogens with a
potential use in biological warfare programs and to determine
if export would be contrary to U.S. national security
interests.
The House bill did not contain a similar provision.
The House recedes. The conferees concur with concerns
identified in the Senate report (S. Rept. 104-112) that the
lowering of export controls on dual-use items and
technologies may place current U.S. technologies and defense
capabilities at risk. The conferees continue to be concerned
with administration support for admittance of nations into
the Missile Technology Control Regime (MTCR) and the New
Forum absent a record of compliance with the spirit of these
regimes prior to their inclusion.
Two years ago in the House report (H. Rept. 103-357), the
conferees expressed concern that ``. . . loosening the
restrictions on space launch vehicle technology within the
MTCR could, over time, result in the proliferation of
offensive ballistic missiles . . .'' and expressed particular
concern about the new MTCR members being permitted to retain
space launch vehicle programs. Despite written administration
assurances that Congress would be consulted on MTCR-related
issues, to include the addition of new members, the conferees
were disappointed to learn in the summer of 1995 that new
countries would be admitted to the MTCR, despite retention of
a SLV program and a history of evading program controls. The
conferees believe that the current administration approach
facilitates a growing and perhaps irreversible danger that
the MTCR, despite its auspicious early history, will
increasingly become an avenue for technology proliferation.
The conferees strongly encourage the administration to
emphasize the use of controls on sensitive technologies in
any new administration proposals to reauthorize the Export
Administration Act, and that no attempts be made to repeal or
substantially alter the missile sanction provisions in Title
XVII of the National Defense Authorization Act for Fiscal
Year 1991, as was the case in the administration proposal
submitted in the last Congress.
American firms are conducting discussions and negotiations
with a number of foreign governments, or other entities, on
the purchase of high-resolution U.S. commercial
reconnaissance and imaging satellites and high-resolution
imagery or imagery distribution systems. The conferees
understand that the Secretary of Defense is authorized under
Presidential Directive/National Security Council-23 and the
Remote Sensing Act of 1992 to determine when national
security interests call for controls on such satellite
imagery. The Secretary of State is similarly empowered to
determine when international obligations would require
imagery controls. The conferees emphasize the following: that
determinations on national security and international
obligations should be communicated to U.S. firms in
discussions regarding issuance of operating licenses to U.S.
firms, to the extent such determinations can be made in
advance of the actual operation of the satellites; that the
Secretary of Defense or the Secretary of State should ensure
that license agreements and distribution agreements include
adequate provisions to ensure that the sharing of imagery or
procurement of U.S. commercial imagery systems or products
with foreign governments or foreign entities would not be
used against U.S. military forces deployed overseas; and that
provisions in the license agreements should deny terrorist
governments and entities controlled by these governments
access to imagery of neighboring countries. The conferees
continue to be concerned that the national security issues
involved in the proliferation of high-resolution satellites
and satellite imagery have not been adequately thought
through by the executive branch and hope that the report
mandated by this section will serve to clarify DoD policy on
these issues.
The conferees also note the recent decision to relax export
restrictions on supercomputers and are concerned about the
potential impact of this decision on the United States'
nonproliferation efforts and the maintenance of the U.S.
military technological edge. The conferees direct the
Secretary of Defense to submit a report, not

[[Page H676]]
later than December 31, 1995, that describes the impact of the export
decision on the ability of nations to acquire and use high-
performance computing capabilities to develop advanced
conventional weaponry, weapons of mass destruction, and
delivery vehicles, including missiles.
Reports on arms export control and military assistance (sec.
1324)
The Senate amendment contained a provision (sec. 1064) that
would require the following reports to be submitted to
Congress: (1) a report by the Secretary of State on the firms
that are on the Department of State watch list for export of
sensitive or dual use technologies, and a description of the
measures taken to strengthen United States export controls;
(2) an evaluation of the watch list screening process by the
Department of State Inspector General; and (3) an annual
report on the aggregate dollar value and quantity of defense
articles, services, and military education and training
furnished by the United States to each foreign country and
international organization.
The House bill did not contain a similar provision.
The conferees agree to a provision that would require the
Department of State and the Department of Commerce, in
consultation with the Department of Defense, to report
jointly to the Congress on United States export control
mechanisms and measures taken to strengthen export controls.
The provision would also require the President to submit a
report to Congress on military assistance and military
exports authorized or furnished to foreign countries and
international organizations.
Report on personnel requirements for control of transfer of
certain weapons (sec. 1325)
The Senate amendment contained a provision (sec. 1093) that
would require the Secretary of Defense and the Secretary of
Energy to report to the Congress on the personnel resources
necessary to implement nonproliferation policy
responsibilities of both departments and would require both
Secretaries to explain the failure to provide the report, as
previously required by legislation.
The House bill did not contain a similar provision.
The House recedes.

Subtitle D--Burdensharing and Other Cooperative Activities Involving
Allies and NATO

Accounting for burdensharing contributions (sec. 1331)
The House bill contained a provision (sec. 1225) that would
authorize the United States to accept burdensharing
contributions in the currency of the host nation or in United
States dollars. This provision would maintain this funding in
a separate account that would be available until expended.
The Senate bill contained no similar provision.
The Senate recedes.
Authority to accept contributions for expenses of relocation
within host nations of United States armed forces
overseas (sec. 1332)
The House bill contained a provision (sec. 1226) that would
establish authorization and procedures to accept
contributions from host nations for the purpose of relocating
United States armed forces within the host nation.
The Senate amendment contained no similar provision.
The Senate recedes.
Revised goal for allied share of costs for United States
installations in Europe (sec. 1333)
The House bill contained a provision (sec. 1228) that would
require the Department of Defense to reduce United States
military personnel assigned in European North Atlantic Treaty
Organization (NATO) countries during fiscal years 1996-1999.
Military personnel would be reduced by 1,000 for each
scheduled percentage point that allied contributions in cash
and in-kind payments fail to offset U.S. non-personnel costs
of operating military installations in Europe.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment.
The conferees agree to a provision that would amend section
1304 of the National Defense Authorization Act of 1995
(Public Law 103-337) to require the President to seek an
agreement with European member states of NATO to increase to
42.5 percent by September 30, 1997 their share of the
nonpersonnel costs for United States military installations
in those nations.
Exclusion of certain forces from European end strength
limitation (sec. 1334)
The conference agreement includes a provision that would
exclude personnel performing duties in Europe for more than
179 days under a military-to-military contact program.
Cooperative research and development agreements with NATO
organizations (sec. 1335)
The Senate bill contained a provision (sec. 1051) that
would make a technical and conforming amendment to section
2350b of title 10, United States Code, to make it consistent
with section 2350a, which was amended in the National Defense
Authorization Act for Fiscal Year 1995.
The House bill did not contain a similar provision.
The House recedes.
Support services for the Navy at the Port of Haifa (sec.
1336)
The Senate amendment contained a provision (sec. 1056) that
would express the sense of Congress that the Secretary of the
Navy should promptly undertake actions to:
(1) improve the services available to the Navy at the Port
of Haifa; and
(2) ensure that the continuing increase in commercial
activities at the Port of Haifa does not have an adverse
impact on the services required by the Navy at Haifa.
The House bill contained no similar provision.
The House recedes with an amendment.

Subtitle E--Other Matters

Prohibition on financial assistance to terrorist countries
(sec. 1341)
The Senate amendment contained a provision (sec. 1057) that
would prohibit the use of any Department of Defense funds to
assist nations that support acts of terrorism. A
determination to prohibit funds may be based on a
determination by the Secretary of State under section
6(j)(1)(A) of the Export Administration Act of 1979; or that
a nation provided significant support for international
terrorism, as identified in a report to Congress, pursuant to
section 140 of the Foreign Relations Authorization Act,
Fiscal Year 1988 and 1989; or a determination by the
President that a nation has supported international terrorism
or has granted sanctuary from prosecution to a group or
individual that has committed an act of international
terrorism.
The House bill contained no similar provision.
The House recedes with a technical amendment.
Judicial assistance to the International Tribunal for
Yugoslavia and to the International Tribunal for Rwanda
(sec. 1342)
The Senate amendment contained a provision (sec. 1098) that
would provide authority for the United States to surrender
persons and provide judicial assistance to the International
Tribunals for Yugoslavia and Rwanda, pursuant to the
agreement between the Government of the United States and the
International Tribunals.
The House bill did not contain a similar provision.
The House recedes with a technical amendment.
United States-China Joint Defense Conversion Commission (sec.
1343)
The House bill included a provision (sec. 1223) that would
prohibit the use of funds authorized in fiscal year 1996 for
the Department of Defense activities associated with the
United States-People's Republic of China Joint Defense
Conversion Commission.
The Senate bill did not include a similar provision.
The House recedes with an amendment.
The conferees agree to a provision that would require the
Secretary of Defense to submit semi-annual reports to
Congress on the United States-People's Republic of China
(PRC) Joint Defense Conversion Commission. The report shall
include: a description of activities that could directly, or
indirectly, assist the military modernization efforts of the
PRC; information on the activities and operations of the
Commission; a discussion of the relationship of PRC defense
conversion activities and PRC defense modernization efforts;
steps taken by the United States to safeguard against use of
western technology to modernize the PRC military industrial
base; and an assessment of U.S. benefits derived from
participation in the commission, to include an increase in
the transparency of the military budget and doctrine of the
PRC. In preparing the reports required by this section, the
Secretary shall seek and obtain the views of appropriate U.S.
intelligence agencies and shall be consulted on the matters
assessed in the reports and those views shall be included as
an annex to the reports.
The conferees agree that a continued dialogue on security
matters between the United States and the PRC can promote
stability in the region, and help protect American interests
and the interests of America's Asian allies. The conferees
note that the Senate Armed Services Committee and the House
National Security Committee intend to review the status of
the U.S.-PRC security dialogue on a regular basis to
determine the extent to which the dialogue has produced
tangible results in the areas of human rights, transparency
in military spending and doctrine, missile and nuclear
nonproliferation, and other important security issues.

legislative provision not adopted

Placement of United States forces under United Nations
operational or tactical control
The House bill contained a provision (sec. 1201) that would
limit the use of Department of Defense funds and the
circumstances under which the President could commit U.S.
armed forces to United Nations (UN) command and control, and
provide exceptions under which armed forces could be placed
under UN command and control. The President would be required
to certify to the Congress, prior to the placement of U.S.
armed forces under UN command and control, the following:
that U.S. national security interests require the placement
of Armed Forces under UN command and control; that U.S. armed
forces commander would retain the right to report
independently to U.S. military authorities and decline orders
that are illegal, militarily imprudent, or beyond the scope
of the mission; that U.S. forces would remain under U.S.
administrative command; and that U.S. forces involved would
retain the authority to withdraw and take necessary
protective actions, if engaged by hostile forces.

[[Page H677]]

The Senate amendment contained a provision (sec. 1061) that
would express the sense of Congress that: U.S. armed forces
should not be placed under the operational control of the UN
without close and prior consultation with Congress; U.S.
armed forces should only be placed under UN command and
control when clearly in the national interest; U.S. armed
forces should only be placed under qualified commanders with
clear and effective command and control; and that U.S. armed
forces should only be placed under operational control of
foreign commanders in peace enforcement missions, except in
the most extraordinary circumstances.
The conference agreement did not include either provision.
The conferees remain gravely concerned over the
administration's stated willingness, as articulated by
Presidential Decision Directive 25, to place U.S. forces
under UN operational control during peacekeeping operations.
The conferees are pleased to note that the peacekeeping
deployment to Bosnia does not involve such an arrangement.
The conferees strongly urge the Secretary of Defense to
ensure that clearly defined and effective command and control
relationships are maintained for U.S. forces participating in
this deployment.

Title XIV--Arms Control Matters

LEGISLATIVE PROVISIONS

legislative provisions adopted

Revision of definition of landmine for purposes of landmine
export moratorium (sec. 1401)
The House bill contained a provision (sec. 1221) that would
amend the definition of ``anti-personnel landmine'',
contained in section 1423(d)(3) of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 103-160),
by deleting ``remote controlled, manually-emplaced munitions
or devices''.
The Senate amendment contained a provision (sec. 1054) that
would include a subsection to redefine the definition of an
antipersonnel landmine.
The conferees agree to an amendment that would amend
section 1423(d) of the National Defense Authorization Act for
Fiscal Year 1994 (Public Law 103-160), to redefine an
antipersonnel landmine to exclude command detonated anti-
personnel landmines, such as M18A1 ``Claymore'' mines, from
the definition.
Reports on moratorium on use by Armed Forces of antipersonnel
landmines (sec. 1402)
The Senate amendment contained a provision (sec. 1099) that
would express the sense of Congress that the President should
actively support proposals to modify protocol II on landmines
in the 1980 Conventional Weapons Convention at the United
Nations Conference, to immediately implement the United
States goal of eventual elimination of antipersonnel
landmines, and place a one year moratorium on the use of
antipersonnel landmines by the United States military, except
along internationally recognized borders and demilitarized
zones. Consistent with the provision, the President should
also encourage governments of other nations to implement a
moratorium on the use of antipersonnel landmines.
The House bill did not contain a similar provision.
The House recedes with amendment.
The conferees agree to a provision that would require the
Chairman of the Joint Chiefs of Staff to provide an annual
report to Congress on the projected effects of a moratorium
on the defensive use of antipersonnel landmines and antitank
mines by the United States military forces.
Extension and amendment of counterproliferation authorities
(sec. 1403)
The House bill contained a provision (sec. 1222) that would
extend, through fiscal year 1996, the authorities in section
1505 of title XV of the National Defense Authorization Act
for Fiscal Year 1993 (Public Law 102-484). The provision
would authorize the Department of Defense to provide up to
$15.0 million to support international nonproliferation
activities, such as, the United Nations Special Commission on
Iraq (UNSCOM). Authority for the Secretary of Defense to
provide assistance under this section would terminate at the
end of fiscal year 1996.
The Senate bill contained no similar provision.
The Senate recedes.
The conferees understand that the extension of authority in
fiscal year 1996 for the Department of Defense support of
international nonproliferation activities would be used
primarily to support the United Nations Special Commission on
Iraq (UNSCOM). The conferees do not intend to provide the
Department of Defense with authority to use defense funds to
support chemical weapons and ballistic missile dismantlement,
nuclear materials control and removal, or to destroy weapons
of mass destruction and their delivery systems in foreign
countries, such as Brazil, South Africa, or countries in
Africa or the Middle East generally. These disarmament
activities are more appropriately funded from the
international affairs budget. Authorities for dismantlement
of weapons of mass destruction in the former Soviet Union are
provided elsewhere in this Act.
In accordance with the conference report to accompany the
National Defense Authorization Act for Fiscal Year 1994, the
conferees direct the Secretary of Defense to provide to the
congressional defense committees, 30 days in advance of any
U.S. commitment to support international nonproliferation
activities, a report on the international nonproliferation
activities which the Department seeks to support. The report
should identify potential future funding for this support,
the extent to which the United States is obligated to provide
such support, the extent to which funds are provided for in
the international affairs budget, and the national security
objective for providing the support.
Limitation on retirement or dismantlement of strategic
nuclear delivery systems (sec. 1404)
The Senate amendment contained a provision (sec. 1082) that
would express the sense of Congress that until the START II
Treaty enters into force, the Secretary of Defense should not
retire or dismantle any B-52H bombers, Trident ballistic
missile submarines, Minuteman III intercontinental ballistic
missiles (ICBMs), or Peacekeeper ICBMs. The provision would
also prohibit the use of funds appropriated to the Department
of Defense during fiscal year 1996 for retiring or
dismantling any such systems.
The House bill contained a similar provision (sec. 1229)
that would express the sense of Congress that the Secretary
of Defense should not implement any reduction in strategic
forces that is called for in the START II Treaty unless and
until that treaty enters into force.
The House recedes.
The conferees reiterate the importance of not having the
United States unilaterally and prematurely begin to implement
reductions under the START II Treaty. Until it is clear that
the treaty will actually enter into force, the United States
must retain options for maintaining a larger force of
strategic nuclear delivery systems, to include 500 Minuteman
III ICBMs, 50 Peacekeeper ICBM's 18 Trident II ballistic
missile submarines, and 94 B-52H bombers. The conferees
believe that by retaining such options, the United States
increases Russia's incentives to ratify and fully implement
the START II Treaty.
Additionally, the conferees believe that it is prudent to
delay, beyond fiscal year 1996, the decision to retire or
dismantle 28 B-52H bombers, as currently planned by the
Department of Defense. At the same time, the conferees do not
believe that the Air Force should take any action that
prejudge a decision in fiscal year 1997 to retire or
dismantle those 28 B-52H bombers. Therefore, the conferees
direct the Secretary of Defense to retain 94 B-52H bombers
during fiscal year 1996, while minimizing additional
expenditures on the 28 aircraft that may be retired in the
near future.
The conferees understood that the Air Force would require
$17.4 million in procurement funds, $45.3 million in
operations and maintenance funds, and $4.3 million in
military personnel funds to retain the 28 B-52H bombers in a
fully operational status and to provide them with system
updates and modifications. The conferees believe that with
system updates and modifications. The conferees believe that
this level of funding may not be required merely to preserve
the option of retaining the 28 aircraft for one more year. In
particular, it may not be necessary to expand procurement
funds on aircraft that may be retired in fiscal year 1997.
Therefore, the conferees agree to authorize the use of up to
$17.4 million in Air Force procurement funds, up to $45.3
million in Air Force operations and maintenance funds, and up
to $4.3 million in Air Force personnel funds to retain in an
attrition reserve status the 28 B-52H bombers that would
otherwise be retired in fiscal year 1996.
Congressional findings and Sense of Congress concerning
treaty violations (sec. 1405)
The House bill contained a provision (sec. 1227) that would
express a sense of Congress that the government of the former
Soviet Union intentionally violated its legal obligation
under the 1972 Anti-Ballistic Missile Treaty in order to
advance its national security interests, and that the United
States should remain vigilant to ensure compliance with arms
control obligations.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment that would
outline the legislative history behind the provision.
Sense of Congress on ratification of the Chemical Weapons
Convention and the Strategic Arms Reduction Talks (sec.
1406)
The House bill contained a provision (sec. 1230) that would
express the sense of Congress that the United States should
ratify the Chemical Weapons Convention (CWC) as a signal of
its commitment to reduce the threat posed by chemical
weapons.
The Senate amendment contained a provision (sec. 1099F)
that would express the sense of Congress that it is in the
national security interests of the United States and Russia,
as signatories of the Strategic Arms Reduction Talks (START
II), and the United States and all parties to the Chemical
Weapons Convention (CWC), to ratify and fully implement the
agreements, as negotiated.
The conferees agree to a provision that would express the
sense of Congress that it is in the national security
interests of the United States, that the United States and
Russia, as parties to START II and the CWC, and all other
signatories to the CWC, to ratify and fully implement these
arms control agreements, as negotiated.
The conferees note that a full Senate debate on the
ratification of START and the CWC treaties has not taken
place. It is not the intention of the Congress, through this
provision, to predetermine the outcome of the Senate debate
on the advice and consent to ratification of the two arms
control treaties.

[[Page H678]]

Implementation of arms control agreements (sec. 1407)
The budget request included $261.9 million in procurement,
operation and maintenance, and research and development in
the defense and military service accounts for the
implementation of arms control agreements.
The Senate amendment contained a provision (sec. 1060) that
would authorize $228.9 million for implementing arms control
agreements, a $33.0 million reduction to the budget request.
The provision would also prohibit the use of defense funds to
reimburse expenses of signatories to arms control treaties,
other than the United States, pursuant to treaties or
agreements with the United States that have entered into
force, if the Congress has not received 30-day notice prior
to agreement between the parties.
The House bill did not contain a similar provision, but
would provide $261.9 million for implementation of arms
control agreements.
The House recedes with an amendment that would make
available up to $239.9 million for implementing arms control
agreements, a $22.0 million reduction to the budget request.
The reductions are reflected in the following table. The
conferees endorse the views stated in the Senate report (S.
Rept. 104-112), that reiterate the concern expressed in the
conference report accompanying the National Defense
Authorization Act for Fiscal Year 1994 (H. Rept. 103-357).
That conference report required the Congress to be notified
30 days in advance of a U.S. agreement to accept the
recommendations of any consultative commissions that result
in either technical changes to a treaty or agreement
affecting inspections and monitoring provisions, or that
result in increased U.S. implementation costs.
The conferees limit the expenditure of funds to provide
reimbursement for arms control implementation inspections
costs borne by the inspected party to a treaty or agreement.
Funds may only be expended if the Congress has been notified
30 days in advance of an agreement by the President to a
policy or policy agreement, and that policy or policy
agreement does not modify any obligation imposed by the arms
control agreement.
The provision would not prohibit the use of funds to
implement two policy agreements under the Intermediate-Range
Nuclear Forces (INF) Treaty and strategic Arms Reductions
Treaty (START), concluded in May 1994 and February 1995. The
conferees understand that the Department of Defense agreed to
reimburse Belarus, Kazakhstan, and Ukraine for the costs of
U.S. inspections conducted within those territories for each
six-month period, expenses for which those countries are
obligated under the treaties, if Belarus, Kazakhstan, and
Ukraine do not conduct inspections in the United States.
Further, the conferees understand that if Belarus,
Kazakhstan, or Ukraine conduct an inspection of a U.S.
facility, the U.S. will not provide reimbursement during the
applicable six-month time period.
The Intermediate Range Nuclear Forces Treaty and Strategic
Arms Reduction Treaty permit the United States to conduct
inspections to verify compliance with the treaties within the
territories of Belarus, Kazakhstan, and Ukraine. The
conferees are concerned about assertions by the
administration that failure to reimburse Belarus, Kazakhstan,
and Ukraine would prevent the United States from conducting
INF and START inspections in these countries in the future.
The Senate provided its advice and consent to ratification of
INF and START based on the ability of the United States to
fully exercise its inspection rights.
In a September 21, 1994 letter from the Secretary of
Defense to Congress, the Secretary emphasized that the policy
statements exchanged between the United States and the three
Parties expressed ``. . . strictly a policy understanding.''
He also stated ``that they are not legally binding'' and that
no treaty provisions would be changed. Further, the Secretary
stated ``[T]he Administration would not consider this to be a
precedent for any other area of START implementation.''
The conferees express their continuing concern that arms
control consultative commissions are being used to facilitate
changes or modifications to arms control treaties and
agreements that should be brought to the Senate for its
review and subsequent advice and consent. There may be very
good reasons for changes in implementation of specific arms
control treaties or agreements. However, if a change or
modification to the treaty or agreement would result in a
change to the understanding under which the Senate provided
its advice and consent to ratification, the Congress must be
consulted about the recommended change or modification in
advance of any agreement in the consultative commissions, and
must provide its subsequent agreement to the change or
modification.

FISCAL YEAR 1996 ARMS CONTROL IMPLEMENTATION BUDGET
----------------------------------------------------------------------------------------------------------------
Account Program Request Recomm Rec Auth
----------------------------------------------------------------------------------------------------------------
WPN.......................................... Arms control compliance......... 14.800 0.000 14.800
OPAF......................................... Spares & repairs................ 0.467 0.000 0.467
PDA.......................................... OSIA............................ 2.941 0.000 2.941
RDT&E, AF.................................... Arms control implementation..... 0.998 0.000 0.998
RDT&E, DA.................................... Ver tech dem, DNA (603711)...... 33.971 0.000 33.971
O&M, Army.................................... ................................ 40.778 -6.000 34.778
O&M, Navy.................................... ................................ 35.354 -2.000 33.354
O&M, AF...................................... ................................ 34.645 -2.000 32.645
O&M, DA...................................... OSIA............................ 97.987 -12.000 85.987
--------------------------------
Total.................................... ................................ 261.941 -22.000 239.941
----------------------------------------------------------------------------------------------------------------

Iran and Iraq arms nonproliferation (sec. 1408)
The Senate amendment included a provision (sec. 1063) that
would amend sections 1604(a) and 1605(a) of Title XVI of the
National Defense Authorization Act for Fiscal Year 1993
(Public Law 102-484), to apply sanctions and controls to
persons or countries who transfer or retransfer goods or
technology that would contribute to the Iran or Iraq efforts
to acquire chemical, biological, or nuclear weapons, in
addition to sanctions and controls on the acquisition of
destabilizing advanced conventional weapons. The provision
would also amend section 1608(7) to clarify the meaning of
``United States assistance'' to conform to the definition of
such term in the Foreign Assistance Act of 1961 (section 2151
et seq. of Title 10, United States Code).
The House bill did not contain a similar provision.
The House recedes with an amendment.
The conferees also agree to an amendment to section
73(e)(2) of the Arms Export Control Act (section 2797b(e)(2)
of title 22, United States Code) that would require that the
notification of certain waivers under the Missile Technology
Control Regime procedures be submitted to the congressional
defense committees and the congressional foreign relations
committees, not less than 45 working days before issuance of
the waiver.

Title XV--Technical and Clerical Amendments

legislative provisions

legislative provisions adopted

Technical and clerical amendments (sec. 1501-1506)
The Senate amendment contained eight sections (secs. 1101
through 1108) that made numerous technical and clerical
amendments to existing laws.
The House bill contained no similar provision.
The House recedes.

Title XVI--Corporation for the Promotion of Rifle Practice and Firearms
Safety

legislative provisions

legislative provisions adopted

Corporation for the Promotion of Rifle Practice and Firearms
Safety (secs. 1601-1624)
The House bill contained a provision (sec. 384) that would
convert the Civilian Marksmanship Program (CMP) to a
federally chartered nonprofit corporation.
The Senate amendment contained a similar provision (sec.
385) that would convert the CMP to a nonappropriated fund
instrumentality.
The Senate recedes with an amendment that would convert the
CMP to a private, nonprofit corporation. The provision would
require the Secretary of the Army to provide for the
transition of the CMP from an appropriated fund activity of
the Department of Defense to a viable nonprofit corporation.
The conferees recognize the value of the CMP, and believe
the program should continue as a non-federal government
entity.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

overview

The budget request for fiscal year 1996 included
$10,697,955,000 for military construction and family housing.
The House bill would authorize $11,197,995,000 for military
construction and family housing.
The Senate amendment would provide $10,902,988,000 for this
purpose.
The conferees recommend authorization of appropriations of
$11,177,009,000 for military construction and family housing,
including general reductions and termination of prior year
projects.
The conferees are deeply concerned about the current
quality of facilities at military installations and the
condition of the housing stock for military families and
unaccompanied personnel. The conferees are concerned about
the possible long-term deleterious effects of deteriorating
military infrastructure and military housing on the readiness
of the armed forces and the retention of personnel. The
conferees are especially concerned about the backlog of
construction, repair, and maintenance required to resolve
serious problems affecting the quality of life for personnel
and their families. The increases in funding recommended by
the conferees is targeted at enhancing quality of life
programs, particularly housing and needed operational
requirements for the military services.
The conferees are pleased with the attention the Secretary
of Defense has devoted to improving family housing, housing
for unaccompanied personnel, and other quality of life
improvements. The conferees note the Secretary's proposal to
establish new authorities for alternative means to construct
or improve military housing. The conferees have worked
closely with the Secretary in the development of the proposal
and have agreed to include these authorities in this Act.
The conferees have also included a provision to expand the
authority previously granted to the Department of the Navy to
enter into limited partnerships with the private sector to
acquire family housing. The conferees note the efforts of the
Navy to utilize existing authority to provide critically
needed housing in Corpus Christi, Texas and Everett,
Washington. The conferees understand that agreements to
provide housing in

[[Page H679]]
those two locations may be ready for contract execution in fiscal year
1996.
In addition to these new initiatives, the conferees also
support a pilot program that provides qualified junior
enlisted and junior officer personnel with greater access to
private home ownership opportunities through an interest rate
buydown program managed by the Department of Veterans'
Affairs. The conferees encourage the Secretary of Defense to
promote this program and to continue exploring creative ways
to stimulate interest in and availability of home ownership
among servicemembers.
The conferees recognize that these authorities have the
long-term potential to produce critically needed housing for
the armed forces. To rectify immediate problems, the
conferees recommend $417,169,000 above the Administration's
budget request for family housing, unaccompanied personnel
housing, child development centers, health care facilities,
and other projects to enhance the quality of life for
currently serving personnel.

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Title XXI--Army

fiscal year 1996

Overview
The House bill would authorize $2,167,190,000 for Army
military construction and family housing programs for fiscal
year 1996.
The Senate amendment would authorize $2,027,613,000 for
this purpose.
The conferees recommend authorization of $2,147,427,000 for
Army military construction and family housing for fiscal year
1996.
The conferees agree to a general reduction of $6,385,000 in
the authorization of appropriations for the Army military
construction account. The general reduction is to be offset
by savings from favorable bids, reduction in overhead costs,
and cancellation of projects due to force structure changes.
The general reduction shall not cancel any military
construction authorized by title XXI of this Act.
Planning and design, Army
The conferees direct that, within authorized amounts for
planning and design, the Secretary of the Army conduct
planning and design activities for the following project:
Pohakuloa Training Site, Hawaii, Road Improvement--
$2,000,000.
The conferees note that this project is required to correct
hazardous road conditions which impact readiness. The
conferees urge the Secretary to make every effort to include
this project in the fiscal year 1997 budget request.
Aerial Port and Intermediate Staging Base, The National
Training Center, Fort Irwin, California
The budget request included no military construction funds
to expand the airport at Barstow-Daggett, California, to meet
the operational and training requirements of the National
Training Center, Fort Irwin, California.
The House bill would authorize $10.0 million for phase II
of the Barstow-Daggett expansion project.
The Senate amendment included no funding for phase II of
this project.
The conferees agree to authorize $10.0 million for phase II
of the Barstow-Daggett expansion project, contingent upon the
Secretary of Defense's certification that the project best
meets the operational and training requirements of the
National Training Center, Fort Irwin, California.

legislative provisions

legislative provisions adopted

Improvements to military family housing units (sec. 2103)
The conferees direct that, within authorized amounts for
construction improvements of military family housing and
facilities, the Secretary of the Army execute the following
projects:
Fort Wainwright, Alaska, Whole Neighborhood
Revitalization--$7,300,000.
Fort Campbell, Kentucky, Whole Neighborhood
Revitalization--$17,356,000.
Fort Bragg, North Carolina, Whole Neighborhood
Revitalization--$10,000,000.

legislative provisions not adopted

Reduction in amounts authorized to be appropriated for fiscal
year 1992 military construction projects
The Senate amendment contained a provision (sec. 2105) that
would rescind $6.25 million from the amount authorized for
the Department of the Army in section 2105 of the National
Defense Authorization Act for Fiscal Year 1992 (Public Law
102-190).
The House bill amendment contained no similar provision.
The Senate recedes.

Title XXII--Navy

fiscal year 1996

Overview
The House bill would authorize $2,164,861,000 for Navy
military construction and family housing programs for fiscal
year 1996.
The Senate amendment would authorize $2,077,459,000 for
this purpose.
The conferees recommend authorization of $2,119,317,000 for
Navy military construction and family housing for fiscal year
1996.
The conferees agree to a general reduction of $6,385,000 in
the authorization of appropriations for the Navy military
construction account. The general reduction is to be offset
by savings from favorable bids, reduction in overhead costs,
and cancellation of projects due to force structure changes.
The general reduction shall not cancel and military
construction authorized by title XXII of this Act.
Planning and design, Navy
The conferees direct that, within authorized amounts for
planning and design, the Secretary of the Navy conduct
planning and design activities for the following projects:
Naval Station, Mayport, Florida, Wharf Improvements--
$2,340,000.
Naval Air Station, Fallon, Nevada, Galley--$50,000.
Naval Air Station, Fallon, Nevada, Child Development
Center--$150,000.
The conferees note that the projects at Naval Air Station,
Fallon, Nevada, are necessary to correct facility
deficiencies which impact readiness, quality of life, and
productivity. The conferees urge the Secretary to make every
effort to include these projects in the fiscal year 1997
budget request.
Improvements to military family housing units (sec. 2203)
The conferees direct that, within authorized amounts for
construction improvements of military family housing and
facilities, the Secretary of the Navy execute the following
projects:
Naval Station, Mayport, Florida, Whole House
Revitalization--$7,300,000.
Public Works Center, Great Lakes, Illinois, Whole House
Revitalization--$15,300,000.
Naval Education Training Command, Newport, Rhode Island,
Whole House Improvements--$8,795,000.
Marine Corps Air Station, Beaufort, South Carolina, Whole
House Rehabilitation--$6,784,000.
Naval Submarine Base, Bangor, Washington, Construction
Improvements--$4,890,000.

legislative provisions

legislative provisions adopted

Revision of fiscal year 1995 authorization of appropriations
to clarify availability of funds for large anechoic
chamber, Patuxent River Naval Warfare Center, Maryland
(sec. 2205)
The Senate amendment contained a provision (sec. 2205) that
would amend section 2204 of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103-307)
to authorize the $10.0 million appropriated for the Large
Anechoic Chamber Facility at the Naval Air Warfare Center,
Patuxent River, Maryland in the Military Construction
Appropriations Act for Fiscal Year 1995 (Public Law 103-307).
The Senate provision would permit the Navy to proceed with
the award of a contract in the amount of $30.0 million for
the first phase of the $61.0 million project.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Authority to carry out land acquisition project, Hampton
Roads, Virginia (sec. 2206)
The Senate amendment contained a provision (sec. 2206) that
would amend section 2201(a) of the National Defense
Authorization Act for Fiscal Year 1993 to authorize the
Secretary of the Navy to acquire 191 acres of land in Hampton
Roads, Virginia. This acquisition is in addition to the land
acquisition at Dam Neck, Virginia, authorized in the National
Defense Authorization Act for Fiscal Year 1993.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
The conferees direct the Secretary of Navy to make every
possible attempt to acquire both parcels of land using the
$4.5 million previously authorized. If additional funds are
required, the conferees expect the Secretary to utilize cost
variation and reprogramming procedures.
Acquisition of land, Henderson Hall, Arlington, Virginia
(sec. 2207)
The Senate amendment contained a provision (sec. 2207) that
would authorize the Secretary of the Navy to acquire a 0.75
acre parcel of land located at Henderson Hall, Arlington,
Virginia. The parcel, which is currently occupied by an
abandoned and vandalized mausoleum, is required to construct
a public works complex to support the Headquarters Battalion,
United States Marine Corps. The provision would authorize the
demolition of the mausoleum and the use of appropriated funds
to remove and provide appropriate disposal of the remains
abandoned in the mausoleum.
The House bill contained no similar provision.
The House recedes with a technical amendment.
Acquisition or construction of military family housing in the
vicinity of San Diego, California (sec. 2208)
The conferees include a new section that would direct the
Secretary of the Treasury to make available, upon request
from the Secretary of the Navy, funds paid to the United
States upon final settlement in the case of Rossmoor
Liquidating Trust, initiated against the United States, in
the United States District Court for the Central District of
California. From those funds, the Secretary of the Navy would
be authorized to acquire or construct no more than 150
military family housing units in the San Diego, California
region for the Department of the Navy. The authority would be
subject to the expiration of a 21-day period, beginning on
the day on which the Secretary transmits to the congressional
defense committees a report containing the details of the
contract to acquire or construct the units authorized by this
section.

Title XXIII--Air Force

fiscal year 1996

Overview
The House bill would authorize $1,727,557,000 for Air Force
military construction and family housing programs for fiscal
year 1996.
The Senate amendment would authorize $1,724,699,000 for
this purpose.
The conferees recommend authorization of $1,735,086,000 for
Air Force military construction and family housing for fiscal
year 1996.
The conferees agree to a general reduction of $6,385,000 in
the authorization of appropriations for the Air Force
military construction account. The general reduction is to be
offset by savings from favorable bids, reduction in overhead
costs, and cancellation of projects due to force structure
changes. The general reduction shall not cancel any military
construction authorized by title XXIII of this Act.
Improvements to military family housing units (sec. 2303)
The conferees direct that, within authorized amounts for
construction improvements

[[Page H698]]
of military family housing and facilities, the Secretary of the Air
Force execute the following project:

Wright-Patterson Air Force Base, Ohio, Family Housing Improve$5,900,000

items of special interest

Bonaire housing complex, Presque Isle, Maine
The conferees are aware of the economic impact and the
difficult redevelopment effort facing Limestone, Maine, as a
result of the closure of Loring Air Force Base. To ensure
that the community has maximum flexibility in its
redevelopment effort, the conferees direct the Secretary of
the Air Force to obtain written concurrence of the designated
local reuse authority, or its designee, before any land,
tangible property or interest in the Air Force property known
as the Bonaire housing complex in Presque Isle, Maine, is
transferred to the Department of Interior, or to any other
entity. The conferees believe that a cooperative effort
should be maintained by all parties seeking property and that
the designated local redevelopment authority is the most
appropriate entity to coordinate reuse efforts.

legislative provisions

legislative provisions adopted

Retention of accrued interest on funds deposited for
construction of family housing, Scott Air Force Base,
Illinois (sec. 2305)
The House bill contained a provision (sec. 2305) that would
amend section 2310 of the Military Construction Authorization
Act for Fiscal Year 1994 (Division B of Public Law 103-160)
to permit the retention of accrued interest on funds
previously transferred to the County of St. Clair, Illinois,
for the purpose of constructing military family housing at
Scott Air Force Base. Upon completion of construction all
funds remaining, and any interest accrued thereon, shall be
deposited in the general fund of the United States Treasury.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would require the
Secretary of the Air Force to submit to congressional defense
committees an annual report describing the amount of interest
accrued and retained by the County for the housing project.
The Secretary would be required to submit the report by March
1 of each year, until the construction project is completed.

legislative provisions not adopted

Reduction in amounts authorized to be appropriated for fiscal
year 1992 military construction projects
The Senate amendment contained a provision (sec. 2305) that
would rescind $16.0 million from the amount authorized for
the Department of the Air Force in section 2305 of the
National Defense Authorization Act for Fiscal Year 1992
(Public Law 102-190).
The House bill contained no similar provision.
The Senate recedes.

Title XXIV--Defense Agencies

fiscal year 1996

Overview
The House bill would authorize $4,692,463,000 for Defense
Agencies military construction and family housing programs
for fiscal year 1996.
The Senate amendment would authorize $4,456,883,000 for
this purpose.
The conferees recommend authorization of $4,629,491,000 for
Air Force military construction and family housing for fiscal
year 1996.

legislative provisions

legislative provisions adopted

Military family housing private investment (sec. 2402)
The House bill contained a provision (sec. 2402) that would
authorize the Secretary of Defense to enter into agreements
to construct, acquire, and improve family housing, for the
purpose of encouraging private investment, in the amount of
$22,000,000.
The Senate amendment contained a similar provision.
The House recedes.
Energy conservation projects (sec. 2404)
The House bill contained a provision (sec. 2404) that would
authorize the Secretary of Defense to carry out energy
conservation projects using funds authorized pursuant to the
authorization of appropriations in section 2405.
The Senate amendment contained a similar provision.
The Senate recedes.
Limitations on use of Department of Defense Base Closure
Account 1990 (sec. 2406)
The conferees include a new section that would prohibit the
obligation of funds authorized for appropriation in section
2405 (a)(10) of this Act, to carry out a construction project
with respect to military installations approved for closure
or realignment in 1995, until after the date the Secretary of
Defense submits to Congress a five-year program for executing
the 1995 base realignment and closure plan. The limitation
would not preclude any activities associated with
environmental cleanup activities or planning and design for
such construction projects.
Modification of authority to carry out fiscal year 1995
projects (sec. 2407)
The House bill contained a provision (sec. 2406) that would
amend the table in section 2401 of the Military Construction
Authorization Act for Fiscal Year 1995 (Division B of Public
Law 103-337) to provide for full authorization of projects to
support chemical weapons and munitions destruction at Pine
Bluff Arsenal, Arkansas and Umatilla Army Depot, Oregon.
The Senate amendment contained a similar provision.
The Senate recedes.
Reduction in amounts authorized to be appropriated for fiscal
year 1994 contingency construction projects (sec. 2408)
The Senate amendment contained a provision (sec. 2407) that
would terminate authorization of appropriations for prior
year projects including:
(1) $3.2 million from the amount authorized for the
Department of Defense in section 2405(a) of the Military
Construction Authorization Act for Fiscal Year 1991 (Division
B of Public Law 101-510);
(2) $6.8 million from the amount authorized for the
Department of Defense in section 2404(a) of the Military
Construction Authorization Act for Fiscal Year 1992 (Division
B of Public Law 102-190); and
(3) $8.6 million from the amount authorized for the
Department of Defense in section 2403(a) of the Military
Construction Authorization Act for Fiscal Year 1993 (Division
B of Public Law 102-484).
The House bill contained no similar provision.
The House recedes with an amendment that would reduce $8.1
million from the amount authorized to be appropriated for the
Department of Defense in section 2403(a) of the Military
Construction Authorization Act for Fiscal Year 1994 (Division
B of Public Law 103-160).

LEGISLATIVE PROVISIONS NOT ADOPTED

Limitation of expenditures for a construction project at
Umatilla Army Depot, Oregon
The House bill contained a provision (sec. 2407) that would
prohibit the expenditure of funds prior to March 1, 1996, for
the construction of a chemical weapons and munitions
incinerator facility at Umatilla Army Depot, Oregon.
The Senate amendment contained no similar provision.
The House recedes.

Title XXV--North Atlantic Treaty Organizations Infrastructure

fiscal year 1996

Overview
The House bill would authorize $161,000,000 for the U.S.
contribution to the NATO Infrastructure program for fiscal
year 1996.
The Senate amendment would authorize $179,000,000 for this
purpose.
The conferees authorize $161,000,000 for the U.S.
contribution to the NATO Infrastructure program.

legislative provisions

legislative provisions adopted

Authorization of appropriations, NATO (sec. 2502)
The House bill contained a provision (sec. 2502) that would
authorize funding for the North Atlantic Treaty Organization
Infrastructure program in the amount of $161.0 million.
The Senate amendment contained a provision (sec. 2502) that
would authorize funding for the North Atlantic Treaty
Organization Infrastructure program in the amount of $179.0
million.
The Senate recedes.

Title XXVI--Guard and Reserve Forces Facilities

fiscal year 1996

Overview
The House bill would authorize $284,924,000 for military
construction and land acquisition for fiscal year 1996 for
the National Guard and reserve components.
The Senate amendment would authorize $432,339,000 for this
purpose.
The conferees recommend authorization of $436,522,000 for
military construction and land acquisition for fiscal year
1996. This authorization would be distributed as follows:

Army National Guard......................................$134,802,000
Army Reserve...............................................73,516,000
Naval/Marine Corps Reserve.................................19,055,000
Air National Guard........................................170,917,000
Air Force Reserve..........................................36,232,000

Planning and design, Guard and Reserve Forces
The conferees direct that, within authorized amounts for
planning and design, the Guard and Reserve Forces conduct
planning and design activities for the following projects:

Army Reserve:
Fort Dix, New Jersey, Intelligence Training Center...........$788,000
Army National Guard:
Lincoln, Nebraska, Medical Training Facility.................$200,000
Fort Dix, New Jersey, Technical Training Facility............$750,000
Billings, Montana, Armed Forces Reserve Center.............$1,200,000
Air National Guard:
Robins Air Force Base, Georgia, B-1 Site and Utility Upgrades$270,000
Hickam Air Force Base, Hawaii, Squadron Operations Facility..$790,000

[[Page H699]]

The conferees note that these projects are required to
accommodate new missions and to correct facility deficiencies
that impact readiness, quality of life, and productivity. The
conferees urge the service secretaries to make every effort
to include these projects in the fiscal year 1997 budget
request.

legislative provisions

legislative provisions adopted

Reduction in amount authorized to be appropriated for fiscal
year 1994 Air National Guard Projects (sec. 2602)
The Senate amendment contained a provision (sec. 2602) that
would rescind funds authorized for appropriation by the
National Defense Authorization Act for Fiscal Year 1994
(Public Law 103-160) for land acquisition for the Idaho
Training Range.
The House bill contained no similar provision.
The House recedes.
Correction in authorized uses of funds for Army National
Guard projects in Mississippi (sec. 2603)
The House bill contained a provision (sec. 2602) that would
clarify amounts authorized to be appropriated in section
2601(1)(A) of the Military Construction Authorization Act for
Fiscal Year 1994 (Division B of Public Law 103-360) for the
addition or alteration of Army National Guard Armories at
various locations in the State of Mississippi. The House
provision would direct the use of authorized funds for the
addition, alteration, or new construction of armory
facilities and an operations and maintenance shop, including
the acquisition of land for such facilities at such
locations.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would direct the
Secretary of the Army to submit a report to congressional
defense committees that would describe the intended use of
funds and to wait 21 days before any of the funds could be
obligated.

Title XXVIII--General Provisions

ITEMS OF SPECIAL INTEREST

Damage to facilities from Hurricane Opal
The conferees note that, on October 5, 1995, military
facilities in the Southeastern United States sustained damage
as a direct result of Hurricane Opal. The conferees direct
the Secretary of Defense to conduct a comprehensive
assessment of infrastructure and facilities at installations
affected by Hurricane Opal, to include: Fort Benning and Fort
McPherson in Georgia; Fort Rucker, Fort McClellan, and
Anniston Army Depot in Alabama; Tyndall Air Force Base, Eglin
Air Force Base, and Hulbert Field and facilities in and
around Naval Air Station, Pensacola, Florida. The Secretary
shall submit a report on the Department's findings to the
congressional defense committees, no later than February 15,
1996.
The assessment should include:
(1) a report on all property damage;
(2) the estimated cost to repair or replace damaged or
destroyed facilities;
(3) the impact on operations and readiness caused by any
loss of facilities;
(4) any actions taken to repair or replace damaged or
destroyed facilities; and
(5) recommendations for funding the required facility
repairs or replacements.

LEGISLATIVE PROVISIONS

LEGISLATIVE PROVISIONS ADOPTED

Subtitle A--Military Housing Privatization Initiative

Alternative authority for construction and improvement of
military housing (sec. 2801)
The House bill contained a provision (sec. 2801) that would
authorize a series of authorities, as alternative methods of
acquiring and improving family housing and support facilities
for the armed forces. Such authorities would include the
ability to contract and lease family housing. Use of the
authorities would be targeted at installations where there is
a shortage of suitable family housing. For housing acquired
under the authorities provided in this section, the unit size
and type limitations in current law would be waived to
encourage private sector development of military family
housing. The Department of Defense (DOD) would be authorized
to contribute up to 35 percent of the investment cost in any
project. Such investment could take a number of forms,
including cash, existing housing, and/or real property. The
provision would also establish the Defense Family Housing
Improvement Fund as the sole source of funding for projects
constructed or renovated under the authorities of this
provision. The provision would require DOD to submit a 21-day
notice-and-wait announcement to Congress before entering into
contract agreements associated with these new authorities and
would require DOD to submit a 30-day notice-and-wait
announcement before transferring funds from the family
housing construction accounts to the Fund. Each of the
authorities contained in this provision would expire on
September 30, 2000.
The Senate amendment contained a similar provision (sec.
2811) that would expand the authorities to include
acquisition or renovation of unaccompanied housing on or near
military installations. The provision would also establish a
Department of Defense Housing Improvement Fund, for use as
the sole source to finance costs associated with the
acquisition of housing and support facilities.
The House recedes with an amendment that would establish
the Department of Defense Family Housing Improvement Fund and
the Department of Defense Military Unaccompanied Housing
Improvement Fund as the sources to finance costs associated
with the acquisition of housing and supporting facilities,
including costs defined in section 502(5) of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a(5)). The provision
would also establish certain reporting requirements for the
DOD and would limit the transfer of funds previously
authorized and appropriated to funds associated with the
construction of family housing or unaccompanied housing. The
provision would also limit the obligation of funds by DOD to
$850.0 million for family housing and $150.0 million for
unaccompanied housing.
Expansion of authority for limited partnerships for
development of military family housing (sec. 2802)
The Senate amendment contained a provision (sec. 2807) that
would provide each of the military services with the limited
partnership authority provided to the Department of the Navy
by section 2803 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337). The provision would
also extend the expiration of the authority to September 30,
2000.
The House bill contained a similar provision.
The House recedes with a technical amendment.

Subtitle B--Other Military Construction Program and Military Family
Housing Changes

Special threshold for unspecified minor construction projects
to correct life, health, or safety deficiencies (sec.
2811)
The Senate amendment contained a provision (sec. 2801) that
would amend 2805 of title 10, United States Code, to include
as a minor military construction project any military
construction project intended solely to correct a life,
health, or safety deficiency, if the approved cost is equal
to or less than $3.0 million. The provision would authorize
the expenditure of operation and maintenance funds to carry
out projects to correct a life, health, or safety deficiency
costing no more than $1.0 million.
The House bill contained a similar provision.
The House recedes.
Clarification of scope of unspecified minor construction
authority (sec. 2812)
The Senate amendment contained a provision (sec. 2802) that
would amend section 2805(a)(1) of title 10, United States
Code, to clarify the definition of minor military
construction.
The House bill contained a similar provision.
The House recedes.
Temporary authority to waive net floor area limitation for
family housing acquired in lieu of construction (sec.
2813)
The Senate amendment contained a provision (sec. 2803) that
would waive, for a five year period, beginning in fiscal year
1996, the net floor area limitation established in section
2826 of title 10, United States Code, if existing family
housing is acquired in lieu of construction.
The House bill contained no similar provision.
The House recedes with an amendment that would give the
service secretary discretionary authority to waive the floor
limitation.
Reestablishment of authority to waive net floor area
limitation on acquisition by purchase of certain military
family housing (sec. 2814)
The Senate amendment contained a provision (sec. 2804) that
would make permanent section 2826(e) of title 10, United
States Code, that allows a waiver for a 20 percent increase
in the square footage limitation when acquiring, through
purchase, military family housing units for members of the
Armed Forces in pay grades below O-6.
The House bill contained no similar provision.
The House recedes with a technical amendment.
Temporary authority to waive limitations on space by pay
grade for military family housing units (sec. 2815)
The Senate amendment contained a provision (sec. 2805) that
would waive section 2826 of title 10, United States Code, for
housing authorized for construction for five years, beginning
in fiscal year 1996. The waiver would permit the construction
of family housing units without regard to space limitations,
as long as the total number of housing units is the same as
authorized by law.
The House bill contained no similar provision.
The House recedes with an amendment that would give the
service secretary discretion to waive the authority for five
years beginning in fiscal year 1996.
Rental of family housing in foreign countries (sec. 2816)
The House bill contained a provision (sec. 2805) that would
authorize an increase in the number of high-cost family
housing units that may be leased in foreign countries.
The Senate amendment contained a similar provision.
The Senate recedes.
Clarification of scope of report requirement on cost
increases under contracts for military family housing
construction (sec. 2817)
The Senate amendment contained a provision (sec. 2808) that
would amend section 2853

[[Page H700]]
to title 10, United States Code, by eliminating the requirement for
congressional notification on cost increases that exceed
established limitations when the increase is related to
settlement of a court ordered contract claim.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Authority to convey damaged or deteriorated military family
housing (sec. 2818)
The Senate amendment contained a provision (sec. 2809) that
would authorize the secretaries of the military departments
to sell, at fair market value, family housing facilities at
non-base closure installations that have deteriorated beyond
economical repair, or are no longer required. The sale may
include the parcel of land on which the family housing
facilities are located.
The provision directs that the proceeds from the sale of
the property be used to replace or revitalize housing at the
existing installation, or at another installation. The
provision also requires the secretary concerned to notify
Congress before proceeding with conveyance of family housing
facilities under this authority.
The House bill contained no similar provision.
The House recedes with a technical amendment.
Energy and water conservation savings for the Department of
Defense (sec. 2819)
The Senate amendment contained a provision (sec. 2810) that
would amend section 2865 of title 10, United States Code, to
include water conservation in the Department of Defense's
comprehensive energy conservation plan.
The House bill contained no similar provision.
The House recedes.
Extension of authority to enter into leases of land for
special operations activities (sec. 2820)
The Senate amendment contained a provision (sec. 2812) that
would make permanent the authority provided in section 2680
of title 10, United States Code, which grants the Secretary
of Defense the authority to lease property required for
special operations activities conducted by the Special
Operations Command.
The House bill contained no similar provision.
The House recedes with an amendment that would extend the
authority to lease property required for special operations
until September 30, 2000.
Disposition of amounts recovered as a result of damage to
real property (sec. 2821)
The House bill contained a provision (sec. 2804) that would
authorize the military departments to retain the proceeds
recovered as a result of damages to real property instead of
depositing those proceeds into the miscellaneous receipts
account in the United States Treasury. Such proceeds would be
made available for repair or replacement of damages to real
property.
The Senate amendment contained no similar provision.
The Senate recedes.
Pilot program to provide interest rate buy down authority on
loans for housing within housing shortage areas at
military installations (sec. 2822)
The House bill contained a provision (sec. 2806) that would
authorize a three-year pilot program to provide additional
housing assistance to military personnel. Under the program,
as administered by the Secretary of Veterans Affairs (VA),
the VA would buy down the interest rate on VA home loans for
qualified applicants. The Secretary of Defense would
reimburse the VA for the costs of the interest rate buy down.
Authorization of the program would be limited to $10.0
million and could only be utilized at military installations
which the Secretary of Defense considers to have a military
family housing deficit.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would limit the
scope of the program to active duty enlisted members, warrant
officers, and officers at a pay grade of O-3 and below.

Subtitle C--Defense Base Closure and Realignment

Deposit of proceeds from leases of property located at
installations being closed or realigned (sec. 2831)
The House bill contained a provision (sec. 2812) that would
authorize the Secretary of Defense to deposit proceeds from
leases of property located at installations being closed or
realigned into the relevant account established in the
Defense Authorization Amendments and Base Closure and
Realignment Act (Public Law 100-526) or the Defense Base
Closure and Realignment Act of 1990 (Public Law 101-510).
The Senate amendment contained a similar provision.
The Senate recedes.
In-kind consideration for leases at installations to be
closed or realigned (sec. 2832)
The Senate amendment contained a provision (sec. 2821) that
would permit the service secretaries to accept in-kind
services (improvements, maintenance, protection, repair, or
restoration services performed on any portion of the
installation) from a lessee in lieu of cash rental payments
for leases of property that will be disposed of as a result
of a base closure or realignment.
The House bill contained no similar provision.
The House recedes with a technical amendment.
Interim leases of property approved for closure or
realignment (sec. 2833)
The Senate amendment contained a provision (sec. 2830B)
that would facilitate the use of limited term leases (one to
five years) by the Department of Defense in connection with
reuse of military installations selected for closure. The
provision would make it clear that any environmental impact
analysis prepared in connection with an interim lease of
Department of Defense property approved for closure or
realignment shall be limited to the scope of environmental
consequences related to the lease activities.
The House bill contained no similar provision.
The House recedes.
The conferees agree that under current law the Department
of Defense has been reluctant to enter into limited term
leases before an environmental review has been completed,
pursuant to the National Environmental Policy Act (42 U.S.C.
4321, et. seq.), that would address the disposal of the
entire installation. Such concerns have impeded private
sector use of base closure property for short term capital
investments.
Authority to lease property requiring environmental
remediation at installations approved for closure or
realignment (sec. 2834)
The Senate amendment contained a provision (sec. 2824) that
would allow the Department of Defense to enter into long-term
lease agreements at military installations selected for
closure, while environmental restoration is ongoing.
Specifically, the section would provide that section
120(h)(3)(B) of the Comprehensive Environmental Response
Compensation and Liability Act of 1980 (CERCLA) (42 U.S.C.
9620(h)(3)(B)) does not apply to leases at Department of
Defense installations. The provision would also provide for
Environmental Protection Agency consultation on the
determination that property is suitable for lease in those
instances involving long term leases at installations
approved for closure under a base closure law.
The House bill contained no similar provision.
The House recedes.
The conferees agree that the provision is necessary to
ensure that the Department may enter into long-term leases
while cleanup is ongoing. The provision addresses a recent
federal district court decision that could undermine reuse
plans at military installations selected for closure with
similar reuse plans. The provision serves to clarify the
legislative intent on this issue.
Final funding for Defense Base Closure and Realignment
Commission (sec. 2835)
The Senate amendment contained a provision (sec. 2825) that
would amend section 2902(k) of the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510, 10 U.S.C. 2657) to authorize the Secretary of
Defense to transfer unobligated funds from the Department of
Defense Base Closure Account to fund the operations of the
Defense Base Closure and Realignment Commission until
December 31, 1995.
The House bill contained no similar provision.
The House recedes with an amendment that would limit the
transfer authority to $300,000.
Exercise of authority delegated by the Administrator of
General Services (sec. 2836)
The Senate amendment contained a provision (sec. 2827) that
would amend the Defense Base Closure and Realignment Act of
1990 (Public Law 101-510) to expand the authority of the
Secretary of Defense, with the concurrence of the
Administrator of the General Services Administration, to
prescribe general policies and issue regulations for
utilizing excess property and disposing of surplus property.
The provision would also make certain technical changes.
The House bill contained no similar provision.
The House recedes with a technical amendment.
Lease back of property disposed from installations approved
for closure or realignment (sec. 2837)
The Senate amendment contained a provision (sec. 2828) that
would amend the Defense Base Closure and Realignment Act of
1990 (Public Law 101-510) to allow base closure property that
is still needed by the Department of Defense or another
federal agency to be transferred to the local redevelopment
authority, providing that the redevelopment authority leases
back the property to the Department of Defense or federal
agency. Such a lease should not exceed 50 years and could not
require rental payments by the United States.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Improvement of base closure and realignment process regarding
disposal of property (sec. 2838)
The House bill contained a provision (sec. 2814) that would
amend the Defense Authorization Amendments and Base Closure
and Realignment Act (Public Law 100-526; 10

[[Page H701]]
U.S.C. 2687 note) and the Defense Base Closure and Realignment Act of
1990 (Part A of title XXIX of Public Law 101-510; 10 U.S.C.
2687). The provision would preclude consideration of Section
501 of the Stewart B. McKinney Homeless Assistance Act (42
U.S.C. 11411) in the transfer or disposal of real property
located at military installations closed or realigned under
the base closure law.
The Senate amendment contained a provision (sec. 2826) that
would amend the Defense Base Closure and Realignment Act of
1990 (Part A of title XXIX of Public Law 101-510; 10 U.S.C.
2687) to authorize the Secretary of Defense to approve local
redevelopment authorities' base reuse plans. Before making
any property disposal decisions, the Secretary of Defense
would be required to consult with the Secretary of Housing
and Urban Development to determine if the needs of the
homeless were appropriately considered. In reviewing disposal
plans, the Secretary of Defense could give deference to local
communities' plans in making the final property disposal
decisions.
The House recedes with a technical amendment that would
recognize the preeminence of local redevelopment authorities'
plans for reuse of properties and facilities on installations
closed or realigned under the base closure procedures. The
amendment would further enhance the ability of the Secretary
of Defense to give final approval of local communities' base
reuse plans.
Agreements for certain services at installations being closed
(sec. 2839)
The House bill contained a provision (sec. 2813) that would
clarify current law that authorizes the Secretary of Defense
to enter into agreements with local governments for the
provision of police, security, fire protection, air field
operations, or other community services provided by such
governments at military installations scheduled to be closed.
The Senate amendment contained a similar provision.
The Senate recedes with a technical amendment.
Authority to transfer property at military installations to
be closed to persons who construct or provide military
family housing (sec. 2840)
The House bill contained a provision (sec. 2811) that would
authorize the Secretary of Defense to enter into an agreement
to transfer property or facilities at a closed installation,
or an installation designated to be closed, under current
law, to a person who agrees to provide, in exchange for the
property or facilities, housing units located at another
military installation where there is a shortage of suitable
housing. Under the provision, the Secretary would not be
permitted to select property or facilities for transfer that
have been identified in the redevelopment plan for the
installation as essential for base reuse and development.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.
Use of single base closure authorities for disposal of
property and facilities at Fort Holabird, Maryland (sec.
2841)
The Senate amendment contained a provision (sec. 2830) that
would consolidate disposal of all property affected by the
1988 and 1995 base closure actions at Fort Holabird, Maryland
under the provisions of the Base Closure Community
Redevelopment and Homeless Assistance Act of 1994 (Public Law
103-421).
The House bill contained no similar provision.
The House recedes with a technical amendment.

Subtitle D--Land Conveyances Generally

part I--army conveyances

Transfer of jurisdiction, Fort Sam Houston, Texas (sec. 2851)
The House bill contained a provision (sec. 2821) that would
authorize the Secretary of the Army to transfer, without
reimbursement, approximately 53 acres, with improvements, to
the Secretary of Veterans Affairs. The property would be
conveyed for use as a national cemetery.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment deleting the
reversionary interest of the Secretary of the Army in the
property.
Transfer of jurisdiction, Fort Bliss, Texas (sec. 2852)
The House bill contained a provision (sec. 2838) that would
authorize the Secretary of the Army to transfer to the
Secretary of Veteran Affairs jurisdiction of approximately 22
acres, comprising a portion of Fort Bliss, Texas. The
property transferred would be used as an addition to the Fort
Bliss National Cemetery.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would delete the
Secretary of the Army's reversionary interest in the
property.
Tranfer of jurisdiction and land conveyance, Fort Devens
Military Reservation, Massachusetts (sec. 2853)
The House bill contained a provision (sec. 2831) that would
require the Secretary of the Army to convey to the Secretary
of the Interior, without reimbursement, a portion of the Fort
Devens Military Reservation, Massachusetts, at any time after
the date on which the property is determined to be excess to
the needs of the Department of Defense. The property is to be
conveyed for inclusion in the Oxbow National Wildlife Refuge.
The cost of any surveys necessary for the conveyance shall be
borne by the Secretary of the Interior.
This section would also require the Secretary of the Army
to convey to the Town of Lancaster, Massachusetts, without
reimbursement, a parcel of real property consisting of
approximately 100 acres of the parcel available for transfer
to the Secretary of the Interior. The cost of any surveys
necessary for the conveyance would be borne by the town.
The Senate amendment contained no similar provision.
The Senate recedes with a technical amendment.
Modification of land conveyance, Fort Belvoir, Virginia (sec.
2854)
The Senate amendment contained a provision (sec. 2863) that
would require the Secretary of the Army to submit a report to
the Senate Armed Services Committee and the House National
Security Committee on the status of the negotiations related
to the land conveyance at the Engineer Proving Grounds, Fort
Belvoir, Virginia authorized by subsection (a) of section
2821 of the Military Construction Authorization Act for
Fiscal Years 1990 and 1991 (Public Law 101-189).
The House bill contained no similar provision.
The House recedes with an amendment that would delete the
reporting requirement and would amend section 2821 of the
Military Construction Authorization Act for Fiscal Years 1990
and 1991 to authorize the Secretary of the Army to convey to
the County of Fairfax, Virginia, all right, title and
interest of the United States in and to all or a portion of
the parcel of real property, including improvements thereon,
at Fort Belvoir, Virginia, consisting of approximately 820
acres and known as the Engineer Proving Ground. In
consideration, the County shall construct facilities for the
Department of the Army; grant title, free of liens and other
encumbrances, to the facilities and, if not already owned by
the Department, to the underlying land; and make
infrastructure improvements for the Department of the Army,
as may be specified by the Secretary of the Army. The value
of the consideration provided by the County shall not be less
than the fair market value of the property conveyed to the
County, as determined by the Secretary. The amendment would
prohibit the Secretary from entering into any agreement under
this provision until the expiration of 60 days following the
date on which the Secretary transmits to the congressional
defense committees a report containing details of the
agreement between the Army and the County.
Land exchange, Fort Lewis, Washington (sec. 2855)
The House bill contained a provision (sec. 2836) that would
authorize the Secretary of the Army to convey to Weyerhaeuser
Real Estate Company, Tacoma, Washington two parcels of real
property at Fort Lewis, Washington totaling 1.26 acres. As
consideration the Weyerhaeuser Real Estate Company would
convey 0.39 acres located within the boundaries of Fort Lewis
together with other considerations acceptable to the
Secretary. The total consideration conveyed to the United
States would be no less than the fair market value of the
property conveyed by the Army.
The Senate amendment contained a similar provision.
The Senate recedes with a technical amendment.
Land exchange, Army Reserve Center, Gainsville, Georgia (sec.
2856)
The Senate amendment contained a provision (sec. 2846) that
would authorize the Secretary of the Army to convey to the
City of Gainesville, Georgia, a 4.2 acre parcel of real
property, including a reserve center, located on Shallowford
Road in Gainsville, Georgia. As consideration, the City of
Gainesville would convey to the Secretary approximately 8
acres of real property located in the Atlas Industrial Park
in Gainesville. The City would construct replacement
facilities in accordance with the requirements of the
Secretary of the Army for training activities of the Army
Reserve, and fund the costs of relocating the Reserve units
to the new location. The City's contribution of land and
facilities would be no less than the fair market value of the
property conveyed by the Secretary.
The House amendment contained no similar provision.
The House recedes with a technical amendment.
Land conveyance, Holston Army Ammunition Plant, Mount Carmel,
Tennessee (sec. 2857)
The House bill contained a provision (sec. 2829) that would
authorize the Secretary of the Army to convey to the City of
Mount Carmel, Tennessee, without reimbursement, a parcel of
real property consisting of approximately 6.5 acres. The
property would be conveyed for expansion of the existing
Mount Carmel Cemetery.
The Senate amendment contained no similar provision.
The Senate recedes.
Land conveyance, Indiana Army Ammunition Plant, Charlestown,
Indiana (sec. 2858)
The House bill contained a provision (sec. 2825) that would
authorize the Secretary of the Army to convey to the State of
Indiana,

[[Page H702]]
without consideration, a parcel of real property, with improvements,
consisting of approximately 1,125 acres. The property to be
conveyed would be used for recreational purposes.
The Senate amendment contained no similar provision.
The Senate recedes.
Land conveyance, Fort Ord, California (sec. 2859)
The House bill contained a provision (sec. 2824) that would
authorize the Secretary of the Army to convey to the City of
Seaside, California, at fair market value, all right, title,
and interest in approximately 477 acres of real property
(comprising the Black House and Bayonet gold courses and a
portion of the Hayes Housing Facilities) comprising a portion
of the former Fort Ord Military Complex. From the amount paid
by the City in consideration for the conveyance, the
Secretary would deposit in the Morale, Welfare, and
Recreation Fund (MWR) account of the Department of the Army
an amount equal to the fair market value of the golf courses
conveyed under this section. The balance of the amount paid
by the City would be deposited in the Department of Defense
Base Closure Account 1990.
The Senate amendment contained a provision (sec. 2841) that
would require the Secretary of Defense, within 60 days after
the date of enactment of the National Defense Authorization
Act for Fiscal Year 1996, to provide to Congress a report
that would describe the disposal plans for the 477 acres of
property at the former Fort Ord Military Complex.
The Senate recedes to Senate amendment, section 2841. The
Senate recedes with an amendment to House bill section 2824.
The amendment to section 2824 would direct the Secretary to
deposit into the MWR account only those proceeds from the
sale of golf courses that are required to support MWR
activities in the vicinity of Fort Ord for the next five
years. The amount deposited into the MWR account would not
exceed the fair market value of golf courses conveyed to the
City. The amendment would also require the Secretary to
certify his findings on the disposition of the proceeds in a
report to Congress 90 days after the date of the conveyance.
Land conveyance, Parks Reserve Forces Training Area, Dublin,
California (sec. 2860)
The House bill contained a provision (sec. 2828) that would
authorize the Secretary of the Army to convey to the County
of Alameda, California, approximately 42 acres, with
improvements, located at the Parks Reserve Forces Training
Area, Dublin, California. The conveyance shall not include
any oil, gas, or mineral interests of the United States, and
shall be subject to the condition that the County would pay
for road improvements, utility upgrades, and construction
improvements at the portion of the Army Training Area
retained by the Army.
The Senate bill contained no similar provision.
The Senate recedes with a a technical amendment.
Land conveyance, Army Reserve Center, Youngstown, Ohio (sec.
2861)
The House bill contained a provision (sec. 2834) that would
authorize the Secretary of the Army to convey to the City of
Youngstown, Ohio, without consideration, a parcel of real
property. The property is located at 399 Miller Street in
Youngstown, Ohio, and comprises the vacant Kefurt Army
Reserve Center.
The Senate amendment contained no similar provision.
The Senate recedes.
Land conveyance, Army Reserve property, Fort Sheridan,
Illinois (sec. 2862)
The Senate amendment contained a provision (sec. 2843) that
would authorize the Secretary of the Army to convey to a
transferee, selected through a competitive process, all
right, title, and interest of the United States in a parcel
of real property, and improvements thereon, at Fort Sheridan,
Illinois, consisting of approximately 114 acres and
comprising two Army Reserve areas. As consideration, the
transferee would convey to the United States a parcel of
land, acceptable to the Secretary, located not more than 25
miles from Fort Sheridan and in an area having similar social
and economic conditions as the area in which Fort Sheridan is
located. The transferee would also be required to construct
replacement facilities and infrastructure, and pay the cost
of relocating the Army personnel. The Secretary of the Army
would be required to ensure that the fair market value of the
consideration provided by the transferee is not less than the
fair market value of the real property conveyed by the
Secretary.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Land conveyance, property underlying Cummins Apartment
Complex, Fort Holabird, Maryland (sec. 2863)
The Senate amendment contained a provision (sec. 2830A)
that would authorize the Secretary of the Army to convey to
the owner of the Cummins Apartment Complex, at fair market
value, six acres of real property at Fort Holabird, Maryland
that underlies the Cummins Apartment Complex.
The House bill contained no similar provision.
The House recedes.
Modification of existing land conveyance, Army property,
Hamilton Air Force Base, California (sec. 2864)
The House bill contained a provision (sec. 2837) that would
modify section 9099(e) of the National Defense Appropriations
Act for Fiscal Year 1993 (Public Law 102-396), which
permitted the Secretary of the Army to sell certain parcels
of property at the former Hamilton Air Force Base,
California, as described in the Agreement and Modification,
dated September 25, 1990, between the Department of the
Defense, the General Services Administration, and the
purchaser. The House provision would authorize the Secretary
of the Army to convey to the City of Novato, California, any
unpurchased property described in section 9099(e) of the
National Defense Appropriations Act for Fiscal Year 1993
(Public Law 102-396), for use in establishing schools and
park areas. Under this provision, the City would be required
to provide any proceeds received from subsequent sale of the
property, within the next ten years, to the Secretary of the
Army.
The Senate amendment contained no similar provision.
The Senate recedes with technical amendment.

part ii--navy conveyances

Transfer of jurisdiction, Naval Weapons Industrial Reserve
Plant, Calverton, New York (sec. 2865)
The House bill contained a provision (sec. 2823) that would
authorize the Secretary of the Navy to transfer to the
Secretary of Veterans Affairs, without reimbursement,
approximately 150 acres at the Naval Weapons Industrial
Reserve Plant, Calverton, New York. The property would be
conveyed for use as a national cemetery.
The Senate amendment contained no similar provision.
The Senate recedes with a technical amendment.
Modification of land conveyance, Naval Weapons Industrial
Reserve Plant, Calverton, New York (sec. 2866)
The House bill contained a provision (sec. 2835) that would
modify the condition of conveyance of the Naval Weapons
Industrial Reserve Plant, Calverton, New York, as authorized
in the Military Construction Authorization Act for Fiscal
1995 (Division B of Public Law 103-335; 108 Stat. 3061). The
modification would amend the purpose of the conveyance. The
provision would also strike the Department of Navy's
reversionary interest in the property, and, in lieu thereof,
authorize the Secretary to lease the facility to the
Community Development Agency, in exchange for security, fire
protection, and maintenance services, until the property is
conveyed by deed.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would retain the
purpose of the conveyance, as currently authorized by law.
Land conveyance alternative to existing lease authority,
Naval Supply Center, Oakland, California (sec. 2867)
The House bill contained a provision (sec. 2833) that would
amend section 2834(b) of the Military Construction
Authorization Act for Fiscal Year 1993, (Division B of Public
Law 103-160) and section 2821 of the Military Construction
Authorization Act for Fiscal Year 1995 (Division B of Public
Law 103-337) to authorize the Secretary of the Navy to convey
to the City of Oakland, California, the Port of Oakland,
California, or the City of Alameda, California, without
consideration, in lieu of an existing lease, property at the
Naval Supply Center, under such terms as the Secretary
considers appropriate. The exact acreage of the real property
that would be conveyed would be determined by a survey that
is satisfactory to the Secretary, and the cost for such
survey shall be borne by the recipient of the property.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would include the
City of Richmond, California as an authorized recipient of
the property to be conveyed.
Land conveyance, Naval Weapons Industrial Reserve Plant,
McGregor, Texas (sec. 2868)
The House bill contained a provision (sec. 2830) that would
authorize the Secretary of the Navy to convey to the City of
McGregor, Texas, without consideration, all right, title, and
interest of the United States in a parcel of real property,
including improvements thereon, containing the Naval Weapons
Industrial Reserve Plant. The conveyed property would be used
for purposes of economic redevelopment. Until the real
property is conveyed by deed, the Secretary would be
permitted to lease the facility of the City in exchange for
security, fire protection, and maintenance services. The
Secretary would be authorized to convey other fixtures
located on the property if such equipment can be reinstituted
after the conveyance.
The Senate amendment contained no similar provision.
The Senate recedes.
Land conveyance, Naval Surface Warfare Center, Memphis,
Tennessee (sec. 2869)
The Senate amendment contained a provision (sec. 2838) that
would authorize the Secretary of the Navy to convey to the
Memphis and Shelby County Port Commission, Memphis,
Tennessee, 26 acres of land, including a 1250 ton stiff leg
derrick crane, located at the Carderock Division, Naval
Surface Warfare Center, Memphis Detachment, President's
Island, Memphis, Tennessee. As consideration

[[Page H703]]
for the conveyance, the Port Commission shall grant a restrictive
easement consisting of approximately 100 acres that is
adjacent to the Memphis Detachment. If the value of the
easement granted by the Port is less than the fair market
value of the real property conveyed by the Navy, the
Secretary and the Port would jointly determine the
appropriate additional compensation. The Secretary would
deposit any cash proceeds received as part of the
transaction, into the special account established under
section 204(h)(2) of the Federal Property and Administrative
Services Act of 1949.
The House bill contained no similar provision.
The House recedes.
Land conveyance, Navy property, Fort Sheridan, Illinois (sec.
2870)
The Senate amendment contained a provision (sec. 2842) that
would authorize the Secretary of the Navy to convey to a
transferee, selected through a competitive process, all
right, title, and interest of the United States in a parcel
of real property, and improvements thereon, at Fort Sheridan,
Illinois, consisting of approximately 182 acres and
comprising the Navy housing areas at Fort Sheridan. As
consideration, the transferee would convey to the United
States a parcel of land, acceptable to the Secretary, located
not more than 25 miles from the Great Lakes Naval Training
Center, Illinois, and located in an area having similar
social and economic conditions as the area in which Fort
Sheridan is located. The transferee would also be required
to: construct replacement housing, support facilities, and
infrastructure; pay the cost of relocating the Navy
personnel; and provide for the education of dependents in
schools that meet, and would continue to meet, standards
established by the Secretary of the Navy, even after the
enrollment of dependents, regardless of the receipt of
federal impact aid by such schools or school districts. The
Secretary of the Navy would be required to ensure that the
fair market value of the consideration provided by the
transferee is not less than the fair market value of the real
property conveyed by the Secretary.
The House bill contained no similar provision.
The House recedes with technical amendment.
Land conveyance, Naval Communications Station, Stockton,
California (sec. 2871)
The Senate amendment contained a provision (sec. 2844) that
would authorize the Secretary of the Navy, with the
concurrence of the Administrator of General Services and the
Secretary of Housing and Urban Development, to convey to the
Port of Stockton, California, all right, title, and interest
in approximately 1,450 acres of real property at the Naval
Communications Station, Stockton, California. The conveyance
may be as a public benefit conveyance if the Port satisfies
the criteria established in section 203 of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C.
484). If the Port does not satisfy such criteria, the
conveyance would be for fair market value. As a condition for
the conveyance, the Port would be required to agree to
maintain, under current terms and conditions, existing
Federal leases of property at the Station. The Secretary
would be authorized to lease the property to the Port until
the property is conveyed by deed.
The House bill contained no similar provision.
The House recedes with an amendment that would delete the
requirement that the conveyance be subject to the concurrence
of the Administrator of General Service and the Secretary of
Housing and Urban Development. The conferees intend that the
Secretary would not carry out the conveyance unless it is
determined that no department or agency of the Federal
Government will accept the transfer of the property.
Lease of property, Naval Air Station and Marine Corps Air
Station, Miramar, California (sec. 2872)
The conferees include a new section that would authorize
the Secretary of the Navy to enter into a lease agreement
with the City of San Diego, California, that would provide
for the City's use of land at the Naval Air Station or Marine
Corps Air Station Miramar, California, as a municipal solid
waste landfill, and for other purposes related to the
management of solid waste. The provision would also allow the
Secretary to receive in-kind consideration under the lease,
and to use any rental money received to carry out
environmental programs or improvement projects to enhance
quality of life programs for personnel stationed at the Naval
Air Station or Marine Corps Air Station. This provision would
provide the sole authority for entering into the described
lease with the City of San Diego.

part iii--air force conveyances

Land acquisition or exchange, Shaw Air Force Base, South
Carolina (sec. 2874)
The House bill contained a provision (sec. 2822) that would
authorize the Secretary of the Air Force to acquire, by means
of an exchange of property, acceptance as a gift, or other
means that would not require the use of appropriated funds,
all right, title, and interest in a parcel of real property,
with improvements, consisting of approximately 1,100 acres
adjacent to Shaw Air Force Base, Sumter, South Carolina.
The Senate amendment contained an identical provision. The
conference agreement includes this provision.
Land conveyance, Elmendorf Air Force Base, Alaska (sec. 2875)
The House bill contained a provision (sec. 2832) that would
authorize the Secretary of the Air Force to sell to a private
person a parcel of real property consisting of approximately
32 acres located at Elmendorf Air Force Base, Alaska. As
consideration for the sale, the purchaser would be required
to provide appropriate maintenance for the apartment complex
located on the property to be conveyed and used by members of
the armed forces and their dependents stationed at the
Elmendorf Air Force Base. The cost of any surveys necessary
for the sale of real property would be borne by the
purchaser.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.
Land conveyance, Radar Bomb Scoring Site, Forsyth, Montana
(sec. 2876)
The Senate amendment contained a provision (sec. 2839) that
would authorize the Secretary of the Air Force to convey to
the City of Forsyth, Montana, without consideration,
approximately 58 acres, with improvements, comprising the
support complex and recreational facilities of the former
Radar Bomb Scoring Site, Forsyth, Montana. The conveyance
would be subject to the condition that the City use the
property for housing and recreational purposes.
The House bill contained no similar provision.
The House recedes.
Land conveyance, Radar Bomb Scoring Site, Powell, Wyoming
(sec. 2877)
The Senate amendment contained a provision (sec. 2840) that
would authorize the Secretary of the Air Force to convey to
the Northwest College Board of Trustees, without
consideration, approximately 24 acres, with improvements,
comprising the support complex, recreational areas, and
housing facilities at the former Radar Bomb Scoring Site,
Powell, Wyoming. The conveyance would be subject to the
condition that the Board use the property conveyed for
housing and recreational purposes, and for such other
purposes as the Secretary and the Board jointly determine
appropriate.
The House bill contained no similar provision.
The House recedes.
Land conveyance, Avon Park Air Force Range, Florida (sec.
2878)
The House bill contained a provision (sec. 2827) that would
authorize the Secretary of the Air Force to convey, without
consideration, a parcel of real property, with improvements,
within the boundaries of the Avon Park Air Force Range near
Sebring, Florida to Highlands County, Florida. The property
would be conveyed for the operation of a juvenile or other
correctional facility.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.

Subtitle E--Land Conveyances Involving Utilities

Conveyance of resources recovery facility, Fort Dix, New
Jersey (sec. 2881)
The House bill contained a provision (sec. 2841) that would
authorize the Secretary of the Army to convey to Burlington
County, New Jersey, a parcel of real property at Fort Dix,
New Jersey, consisting of approximately two acres and
containing the Fort Dix resource recovery facility.
The Senate amendment contained a similar provision.
The Senate recedes with an amendment that would increase
the acreage to be conveyed to six acres and would make other
technical corrections.
Conveyance of water and wastewater treatment plants, Fort
Gordon, Georgia (sec. 2882)
The House bill contained a provision (sec. 2842) that would
authorize the Secretary of the Army to convey to the City of
Augusta, Georgia, all rights, title, and interest of the
United States in several parcels of real property consisting
of approximately seven acres each and containing water and
wastewater treatment plants and distribution and collection
systems. In consideration of the conveyance, the City of
Augusta would accept the water and wastewater treatment
plants and distribution and collection systems in their
existing condition and provide water and sewer service to
Fort Gordon, Georgia at a rate established by the appropriate
State or Federal regulatory authority.
The Senate amendment contained a similar provision.
The Senate recedes with a technical amendment.
Conveyance of electricity distribution system, Fort Irwin,
California (sec. 2883)
The House bill contained a provision (sec. 2843) that would
authorize the Secretary of the Army to convey to the Southern
California Edison Company, California, all right, title, and
interest of the United States in the electrical distribution
system located at Fort Irwin, California. In consideration
for the conveyance, the Southern California Edison Company
would be required to accept the electrical distribution
system in its existing condition and provide electrical
service to Fort Irwin at a rate established by the
appropriate State or Federal regulatory authority.
The Senate amendment contained a similar provision.

[[Page H704]]

The Senate recedes with a technical amendment.
Conveyance of water treatment plant, Fort Pickett, Virginia
(sec. 2884)
The Senate amendment contained a provision (sec. 2835) that
would authorize the Secretary of the Army to convey to the
Town of Blackstone, Virginia, without reimbursement, the
water treatment plant located at Fort Pickett, Virginia. In
exchange, the town would provide water and sewer services to
Fort Pickett, at a rate negotiated by the Secretary of the
Army and approved by the appropriate federal and state
regulatory authorities.
The House bill contained no similar provision.
The House recedes with an amendment that would authorize
the Secretary of the Army to convey to the Town of
Blackstone, Virginia, the water treatment plant located at
Fort Pickett, Virginia. The amendment would also modify
paragraph (c) by clarifying that the water rights granted to
the town would be determined pursuant to the law of the
Commonwealth of Virginia.

Subtitle F--Other Matters

Authority to use funds for certain educational purposes (sec.
2891)
The Senate amendment contained a provision (sec. 2813) that
would amend section 2008 of title 10, United States Code, to
authorize the Department of Defense to continue the use of
appropriated funds for repair, maintenance, and construction
of Department of Education school facilities located on
military installations.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Department of Defense Laboratory Revitalization Demonstration
Program (sec. 2892)
The Senate amendment contained a provision (sec. 2861) that
would establish a test program to allow the heads of selected
defense laboratories greater flexibility to undertake
facility modernization initiatives. For test program
laboratories, the provision would raise the minor
construction threshold, from $1.5 million to $3.0 million,
for projects that the Secretary of Defense may carry out
without specific authorization. The provision would also
raise the threshold for minor military construction projects
requiring prior approval of the Secretary of Defense, from
$500,000 to $1.5 million. Finally, the provision would raise,
for the selected laboratories, the threshold, from $300,000
to $1.0 million, for the value of any unspecified military
construction project for which operation and maintenance
funds may be used.
The provision would provide for the expiration of the test
authority on September 30, 2000. It would also require the
Secretary of Defense to designate participating laboratories
before the test may begin, establish a review procedure for
each project to be funded under this section, and report to
Congress on the lessons learned from the test program one
year before the program is terminated.
The House bill contained no similar provision.
The House recedes with a technical amendment.
Authority for Port Authority of State of Mississippi to use
Navy property at Naval Construction Battalion Center,
Gulfport, Mississippi (sec. 2893)
The House bill contained a provision (sec. 2852) that would
authorize the Secretary of the Navy to enter into an
agreement with the Port Authority of the State of Mississippi
to permit joint use of real property and associated
improvements comprising up to 50 acres located at the Naval
Construction Battalion Center, Gulfport, Mississippi. The
requirement would be for a period not to exceed 15 years, and
the Port Authority would be required to pay fair market
rental value as determined by the Secretary. The Secretary
could not enter into any agreement until after the end of a
21-day period beginning on the date on which the Secretary
submits a report to Congress explaining the terms of the
proposed agreement and describing the consideration that the
Secretary would expect to receive under the agreement.
The Senate amendment contained a similar provision.
The Senate recedes.
Prohibition on joint use of Naval Air Station and Marine
Corps Air Station, Miramar, California (sec. 2894)
The House bill contained a provision (sec. 2853) that would
prohibit the Secretary of the Navy from entering into any
agreement that would provide for the regular use of Naval Air
Station, Miramar, California, by civil aircraft.
The Senate amendment contained a similar provision.
The Senate recedes with a clarifying amendment.
Report regarding Army water craft support facilities and
activities (sec. 2895)
The House bill contained a provision (sec. 2854) that would
require the Secretary of the Army to submit, not later than
February 15, 1996, a report describing the Army's water craft
support facilities and activities. The report would include
actions that can be taken to close the Army Reserve Facility
located in Marcus Hook, Pennsylvania.
The Senate amendment contained no similar provision.
The Senate recedes with a technical amendment.
Residual value reports (sec. 2896)
The Senate amendment contained a provision (sec. 2864) that
would require the Secretary of Defense, in coordination with
the Director of the Office of Management and Budget, to
submit to the congressional defense committees a status
report on the results of residual value negotiations between
the United States and Germany. The report would be provided
within 30 days after the Office of Management and Budget
receives the results of the negotiations.
The House bill contained no similar provision.
The House recedes with a technical amendment.
Sense of Congress and report regarding Fitzsimons Army
Medical Center, Colorado (sec. 2897)
The Senate amendment contained a provision (sec. 2830C)
that would express the Sense of Congress that the Secretary
of the military departments should consider the expedited
transfer of facilities to local redevelopment authorities
while the facilities are still operational. The provision
would also require the Secretary of the Army to provide a
report, within 180 days of enactment of the National Defense
Authorization Bill for Fiscal Year 1996, on the actions taken
to convey the Fitzsimons Army Medical Center, Colorado.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
The conferees agree that this section is intended to
support current efforts to redevelop the Fitzsimons Army
Medical Center. The conferees agree that this section is not
intended to circumvent the 1995 recommendations of the
Defense Base Closure and Realignment Commission, or other
applicable laws.

legislative provisions not adopted

Land conveyance, Naval Air Station, Pensacola, Florida
The House bill contained a provision (sec. 2826) that would
authorize the Secretary of the Navy to convey to West Florida
Developers, Inc. a parcel of unimproved real property,
consisting of approximately 135 acres. As consideration for
the conveyance of real property, West Florida Developers,
Inc. would agree to restrict the use of all lands located
within the Accident Potential Zone of Naval Air Station
Pensacola, owned by West Florida Developers, Inc. The cost of
any surveys necessary for the conveyance shall be borne by
West Florida Developers, Inc.
The Senate amendment contained no similar provision.
The House recedes.
Expansion of authority to sell electricity
The House bill contained a provision (sec. 2851) that would
amend section 2483(a) of title 10, United States Code, to
expand the authority of the Department of Defense to permit
the military departments to take advantage of changing
electric power marketing conditions by increasing the
available option to outsource for energy on military
installations.
The Senate amendment contained no similar provision.
The House recedes.
Clarification of funding for environmental restoration at
installations approved for closure or realignment in 1995
The Senate amendment contained a provision (sec. 2823) that
would authorize the Department of Defense to fund
environmental restoration at installations selected for
closure by the 1995 Defense Base Closure and Realignment
Commission with funds authorized for the Defense
Environmental Restoration Account for fiscal year 1996. After
fiscal year 1996, environmental restoration for these
installations would be funded using the Defense Base Closure
and Realignment Account.
The House bill contained no similar provision.
The Senate recedes.
Report on the disposal of property, Fort Ord Military
Complex, California
The Senate amendment contained a provision (sec. 2841) that
would require the Secretary of Defense to submit a report to
the Congress describing the plans for the disposal of a
parcel of real property consisting of approximately 477 acres
at the former Fort Ord Military Complex.
The House bill contained no similar provision.
The Senate recedes.
Land conveyance, William Langer Jewel Bearing Plant, Rolla,
North Dakota
The Senate amendment contained a provision (sec. 2845) that
would authorize the Administrator of the General Services
Administration to convey to the Job Development Authority of
the City of Rolla, without consideration, approximately 9.77
acres of real property, comprising the former Army-owned
William Langer Jewel Bearing Plant, Rolla, North Dakota. The
property and facility are to be used for economic development
in order to replace economic activity lost at the plant.
The House bill contained no similar provision.
The Senate recedes.

[[Page H705]]

Renovation of the Pentagon Reservation
The Senate amendment contained a provision (sec. 2865) that
would require the Secretary of Defense to take such actions
necessary to reduce the total cost of the renovation of the
Pentagon Reservation to not more than $1.1 billion.
The House bill contained no similar provision.
The Senate recedes.
The conferees note that, as required by section 8149 of the
Fiscal Year 1995 Department of Defense Appropriations Act
(Public Law 103-335), the Secretary of Defense certified on
December 19, 1994 that the total cost of the renovation would
not exceed $1.2 billion. Although the department is in the
fifth year of a 15 year renovation of the Pentagon, the
conferees reiterate their view that this project should be
executed at the lowest cost possible. Earlier this year, the
Secretary of Defense appointed a steering committee to review
the ongoing renovation project. The Secretary of Defense is
directed to submit a report to the Senate Committee on Armed
Services and the House Committee on National Security by
February 15, 1996 on the findings of the steering committee
review and on opportunities to achieve further savings.

Title XXIX--Land Conveyances Involving Joliet Army Ammunition Plant

legislative provisions

legislative provisions adopted

Title XXIX--Land Conveyances involving Joliet Army Ammunition
Plant, Illinois
The Senate amendment contained provisions (secs. 2851-2857)
that would authorize the Secretary of the Army to transfer to
the Secretary of Agriculture approximately 19,000 acres of
land located at the Joliet Army Ammunition Plant to establish
the Midewin Tallgrass Prairie. The provision would also
authorize the Secretary of the Army to convey, without
compensation, to the Secretary of Veterans Affairs 910 acres
of land at Joliet Army Ammunition Plant to establish a
national cemetery.
The provision would further authorize the Secretary of the
Army to convey to the County of Will, Illinois, without
consideration, 425 acres of land at Joliet Army Ammunition
Plant to be used for a landfill. As a part of this
conveyance, the County of Will would be required to permit
Federal Government use of the landfill at no cost.
The provision would also authorize the Secretary of the
Army to convey, at fair market value, 1,900 acres and 1,100
acres of land located at the Joliet Army Ammunition Plant to
the Village of Elwood, Illinois, and the City of Wilmington,
Illinois, respectively, to establish industrial parks. All
proceeds from any future sale of these parcels or portions of
these parcels would be remitted to the Secretary of the Army.
The House bill contained no similar provision.
The House recedes with an amendment that would incorporate
the language contained in H.R. 714, an act that would
establish the Midewin National Tallgrass Prairie in the State
of Illinois, as passed by the House of Representatives in the
104th Congress. The House amendment would modify H.R. 714 to:
(1) make technical corrections;
(2) authorize the Secretary of the Army to transfer 982
acres of real property to the Secretary of Veterans Affairs
to establish a national cemetery;
(3) authorize the Secretary of the Army to convey to Will
County, Illinois, without consideration, 455 acres of real
property for use as a landfill;
(4) authorize the Secretary of the Army to convey to the
State of Illinois, at fair market value, 3,000 acres of real
property to the State of Illinois for economic redevelopment.
The State of Illinois would be required to pay the Army fair
market value for the property within twenty years after the
date of the conveyance;
(5) require the Governor of the State of Illinois to
consult with the Mayors of the Village of Elwood, Illinois,
and the City of Wilmington, Illinois, in establishing a
redevelopment authority to oversee the development of the
real property conveyed to the State; and
(6) clarify the responsibility of the Department of the
Army, and other parties to the conveyance, for environmental
remediation and restoration of the real property comprising
the Joliet Army Ammunition Plant.

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
OTHER AUTHORIZATIONS

Title XXXI--Department of Energy National Security Programs

Overview
The budget request for fiscal year 1996 contained an
authorization of $11,178.5 million for the Department of
Energy National Security Programs. The House bill would
authorize $10,403.6 million. The Senate amendment would
authorize $11,178.7 million. The conferees recommended an
authorization of $10,618.2 million. The funding level was
largely due to a reduced funding in Environmental Restoration
and Waste Management. Unless noted explicitly in the
statement of managers, all changes are made without
prejudice.

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legislative provisions

legislative provisions adopted

Subtitle A--National Security Programs Authorizations

Weapons Activities (sec. 3101)
The budget request included $3.540 billion for weapons
activities. The House bill contained a provision (sec. 3101)
that would authorize $3.599 billion for operating expenses,
plant projects, and capital equipment for activities
necessary to carry out the Department of Energy stockpile
stewardship and stockpile management programs.
The Senate amendment contained a provision (sec. 3101) that
would authorize Department of Energy weapons activity funding
for fiscal year 1996 in the amount of $3.654 billion.
The conferees agree to authorize $3.460 billion for weapons
activities, a reduction of $80.0 million from the requested
amount. This overall net reduction is the result of a $55.7
million increase to the requested amount for all authorized
weapons activities, combined with $135.6 million in
adjustment reductions. The adjustment reductions are
primarily based on larger amounts of prior year balances than
those proposed in the Department of Energy (DOE) budget
request. The $55.7 million increase in weapons activities is
necessary to fund the requirements levied on the DOE as a
result of the Nuclear Posture Review. The increase is
required for two major reasons: to fund a modern stockpile
refabrication capacity sized to the requirements of the
Nuclear Posture Review and to fund a means to assure
confidence in stockpile reliability and safety without full-
scale, underground nuclear testing. The increase is also
appropriate given the historic downward trend in funding for
weapons activities (75% from fiscal year 1985 to fiscal year
1995).
The conferees remain concerned about the near-term
viability of U.S. strategic deterrence, particularly if the
United States refrains from remanufacturing the weapons in
the nuclear stockpile with the most efficient fabrication
techniques. In relation to the needs of nuclear weapons
refabrication and recertification, the conferees recommend
that the DOE laboratories and plants enter into appropriate
industrial partnerships of mutual benefit.
The budget request included $1.016 billion for core
stockpile stewardship. The conferees agree to authorize
$1.078 billion for core stockpile stewardship. The conferees
authorize the use of stockpile stewardship funds, as follows:
(1) accelerated strategic computing initiative, $40.0 million
(2) hydronuclear experiment preparation, $30.0 million; (3)
dual revalidation, $10.0 million.
Of the $150.0 million authorized for a redirected
technology transfer program, the conferees recommend the
following amounts: (1) advanced design & production
technology (ADAPT), $20.0 million; (2) AMTEX, $10.0 million;
(3) enhanced stockpile surveillance, $20.0 million; (4)
industrial partnerships in direct support of stockpile
stewardship program, $25.0 million; (5) industrial
partnerships in direct support of stockpile management
program, $25.0 million; (6) completion of highest priority
CRADA's that remain from fiscal year 1995, $50.0 million.
The budget request included $1.907 billion for the
stockpile management program. The conferees agree to
authorize $2.025 billion for the stockpile management
program. The conferees authorize the following: (1)
manufacturing infrastructure/technology modernization at the
four production plants, $143.0 million; (2) fellowship
program (four plants), $10.0 million; (3) radiological/
nuclear accident response, $70.9 million; (4) tritium source,
$50.0 million.
The conferees agree to authorize an additional $118.2
million for stockpile management activities. The increase is
necessary to remedy weapons refabrication planning
deficiencies identified at the DOE production complex. These
remedies are required to begin meeting the objectives of the
Nuclear Posture Review.
The conferees recommend that in following fiscal years the
Department request the full amount required to meet
Department of Defense and programmatic requirements for
weapons activities. The conferees find that the DOE Five Year
National Security Budget Plan, which assigns major,
arbitrary, outyear budget cuts to weapons activities, and to
other critical programs within Atomic Energy Defense
Activities, does not adequately address the budget
requirements necessary to implement the Nuclear Posture
Review.
Environmental restoration and waste management (sec. 3102)
The budget request included $6.008 billion for
environmental restoration and waste management.
The House bill contained a provision (sec. 3102) that would
authorize $5.265 billion for operating expenses, plant
projects, and capital equipment for defense environmental
restoration and waste management activities.
The Senate amendment contained a provision (sec. 3102) that
would authorize $5.906 billion.
The conferees authorize $5.557 billion for defense
environmental restoration and waste management activities, a
reduction of $451.0 million from the request. The reduction
would be partially offset by the availability of prior year
funds that have not been obligated, or if obligated, have not
been expended and would not be needed for the projects that
were the basis for obligation.
The conferees support the recent Department of Energy
strategic realignment initiatives, taken in connection with
the Department's headquarters functions, to include the
consolidation of space, the elimination of duplication
between field and headquarters activities, and the reduction
of headquarters support service contractors. The conferees
direct that funding cuts, to the maximum extent possible,
continue to be absorbed through reduction of headquarters
personnel and activities. With limited budgets, it is
critical that every available dollar be used for actual
cleanup activities in the field and that the Department
continue its efforts to reduce bureaucratic layers and
organizational redundancies at headquarters.
The conferees understand that the Department has employed
support service contractors to perform inherently
governmental or core governmental functions at the
headquarters level. The conferees direct the Department to
discontinue that practice and to transfer savings to field
operations. The conferees recognize that in some cases it may
be more cost effective to seek outside technical expertise
rather than employ permanent government personnel.
The conferees authorize an additional $60.0 million above
the budget request in the environmental restoration sub-
account to initiate an accelerated cleanup program at sites
where such action could result in long-term cost savings to
the Department. The conferees intend for the Department to
carefully evaluate opportunities for such savings at all
Department of Energy sites. Guidelines for selection of sites
that are eligible for accelerated cleanup are discussed
elsewhere in this report.
The conferees are particularly concerned about the
projected use of several Department of Energy facilities for
additional responsibilities with respect to the processing,
treatment, and interim storage of foreign and domestic
sourced spent fuel rods. Therefore, the conferees direct,
elsewhere in this statement of managers, the initiation of
several projects to mitigate these effects. The conferees
also direct the initiation of the preconstruction design and
engineering for dry storage and advanced mixed waste
treatment facilities at the Idaho National Engineering
Laboratory. In this regard, the conferees agree to authorize
additional funding for the spent nuclear fuels canister
storage and stabilization facility at Hanford, Washington.
Prior to, and during conference, the Department submitted
to the Congress several separate amendments (additions and
deletions) to the list of projects included in the original
budget request. Consistent with the amended budget
submission, the conferees agree to provide additional funding
for certain projects and to delete a number of other
projects. Given the lead times associated with budget
preparation, the conferees recognize that it is difficult to
accurately project the status or requirements for every
activity. However, the conferees encourage the Department to
refrain from submitting multiple amendments to budget
requests during conference.
In an effort to track carryover balances, the conferees
direct the Department to submit a report to the congressional
defense committees, contemporaneous with the fiscal year 1997
budget request. The report should contain the following: (1)
an end of current fiscal year projection of uncosted and
unobligated carryover balances; (2) target end of current
fiscal year carryover balances, by program, based on a model
of the minimum amount necessary for program operations and
continuity; (3) a comparison of the differences between the
projected and target carryover balances, by program; (4) a
justification for the difference between the projected and
targeted carryover balances; and (5) the amount of
unjustified carryover balances, based on the calculation in
(2). The conferees direct the Department to report the
carryover balances within the Environmental Restoration and
Waste Management Program, and those balances across all
Atomic Energy Defense Activities accounts. The conferees
believe that unjustified carryover balances should be applied
to reduce the Department's budget request for the next fiscal
year.
Other Defense Activities (sec. 3103)
The budget request included $1.432 billion for Other
Defense Activities of the Department of Energy (DOE) for
fiscal year 1996. The House bill contained a provision (sec.
3104) that would authorize $1.329 billion for Other Defense
Activities.
The Senate amendment contained a provision (sec. 3103) that
would authorize $1.408 billion for this group of programs, a
decrease of $24.0 million below the requested amount.
The conferees agree to authorize $1.352 billion for these
programs.
The conferees also direct that the five-year plans for the
following activities be provided, not later than January 15,
1996, to the congressional defense committees: security
investigations; nuclear safeguards and security; nuclear
safety; worker and community transition; fissile materials
disposition; naval reactors; nonproliferation; and arms
control.

Naval Reactors

The conferees urge the Naval Reactors Program to maintain
the high health and safety standards that have resulted in
both an unprecedented record of safe operation and have
become the standard for safe nuclear power operations around
the world.

[[Page H727]]
The conferees also support the program's continued use of the Advanced
Test Reactor (ATR). This facility is completely unique in the
United States and is essential to the continuation of the
advanced materials subprogram. This subprogram provides
experimental data that is the basis for both present safety
standards and future power plant designs.

Other National Security Programs

Nuclear Safeguards and Security

The conferees believe that the Secretary of Energy should
carefully balance investment within the sub-programs of the
Nuclear Safeguards and Security Program to safeguard
Department of Energy nuclear weapons, nuclear materials, and
facilities against theft, sabotage, and terrorist activity.
Such a balanced approach should remain the highest priority
of the program. The conferees authorize additional funding
for declassification activities elsewhere in this statement
of managers, but this should not be construed as an
indication that the Congress in any way is indifferent to the
protection of these DOE properties. In view of the growing
severity of domestic and international terrorism, the
conferees urge the DOE to take increased steps to safeguard
the weapons grade material and weapons under its control.

Office of Security Investigations

As a result of recent major incidents of domestic and
international terrorism, the conferees believe that the
Office of Security Investigations should determine the need
for more frequent reinvestigations of individuals with actual
access to weapons grade material. The conferees direct that
the Secretary provide the congressional defense committees
with a description of the determination rendered, not later
than March 30, 1996. The Secretarial submission should
include the Department's recommendations and the rationale
for the determination. The conferees also recommend a more
detailed treatment of any new initiatives and emphases in the
fiscal year 1997 budget submission.

Office of Security Evaluations

The conferees believe that the Office of Security
Evaluations should reevaluate its present policies, and
evaluate and develop new policies and actions, if required,
to improve the effectiveness of its program. The conferees
direct that the Secretary provide an explanation of the
results of this reevaluation to the appropriate congressional
defense committees, not later than March 30, 1996. The
conferees also recommend a more detailed treatment of the
results of its policies in the fiscal year 1997 budget
submission.

Office of Nuclear Safety

The conferees believe that the Office of Nuclear Safety
should implement the program with an overall cost/benefit
analysis applied as a major consideration. That approach
would ensure that available resources would be used in a
fiscally responsible manner, and provide reductions in
significant risks to employees. Resources should not be used
to fund marginal improvements that provide minimal safety
benefits. The conferees direct the Secretary to implement
cost/benefit performance as a criterion for the Office of
Nuclear Safety.

Worker and Community Transition

The conferees direct the Worker and Community Transition
program to provide more detailed information on the
effectiveness of its activities, through the end of fiscal
year 1995, in the fiscal year 1997 budget request.

Fissile Materials Control and Disposition

The conferees are concerned that the Fissile Materials
Control and Disposition Program does not have a wide range of
technology and cost effectiveness assessments in its
programmatic environmental impact statement (PEIS). Specific
direction is provided in this Act to consider a variety of
nuclear reactors in this regard. The committees of
jurisdiction intend to explore these issues in greater depth
with the Department of Energy during future congressional
hearings.

Emergency Response

The conferees direct that the funds for the Office of
Emergency Response, within the Office of Non-proliferation
and National Security, shall be allocated within the Other
Defense Programs category, not from within any other part of
the Atomic Energy Defense Activities. The conferees further
direct that in fiscal year 1997, and subsequent fiscal years,
the funding requested for Atomic Energy Defense Activities
Program Direction should be allocated separately within each
of the four top level categories of that account, and not
aggregated within one such category, as was done in the
fiscal year 1996 budget request.
Nonproliferation and verification research and development
and arms control
The budget request included $226.1 million for
nonproliferation and verification research and development,
and $162.3 million for arms control.
The House bill would authorize $163.5 million for
nonproliferation and verification research and development, a
$62.6 million reduction to the budget request; and $147.4
million for arms control, a $14.9 million reduction to the
budget request.
The Senate amendment would authorize the budget request.
The conferees authorize $224.9 million for nonproliferation
and verification research and development, consistent with
the amended budget request from the Department of Energy, and
$161.0 million for arms control.
Due to the increase in international terrorism and attempts
to acquire weapons grade nuclear materials by criminal
organizations, the conferees authorize $3.0 million be
available from nonproliferation and verification research and
development for the development of forensics capability to
detect and track shipments abroad. Further, the conferees
direct the Secretary of Energy to broaden involvement in this
area to include the entire Department of Energy weapons
complex, including the Savannah River Site, Pacific Northwest
Laboratory, Idaho National Engineering Laboratory, and
industry.
The conferees direct the Secretary of Energy to submit a
five-year nonproliferation research and development program
plan to Congress by March 30, 1996. The plan shall include a
program strategy, description of the program and project
objectives, deliverables, and milestones for each project
within the program. The plan shall also identify the specific
organization customers for each project and subprogram.
The conferees concur with recommendations in the Senate
report (S. Rept. 104-112) that the Department of Energy, in
coordination with the International Atomic Energy Agency
(IAEA), should conduct a study on nuclear reactor safety
issues in the Ukraine and report, with recommendations, to
Congress on the safety issues that need to be addressed. The
conferees direct that the report be broadened to include
nuclear reactors in Russia. However, the conferees agree that
funding to conduct a study on nuclear reactor safety study in
Ukraine and Russia would more appropriately be funded in the
international affairs budget and the civilian nuclear reactor
portion of the energy budget, and therefore, no funds are
authorized to conduct this study from nonproliferation and
verification research and development or any other Atomic
Energy Defense Activities account.
Defense nuclear waste disposal (sec. 3104)
The budget request included $198.4 million for defense
nuclear waste disposal activities of the Department of Energy
for fiscal year 1996.
The House bill contained a provision (sec. 3105) that would
authorize $198.4 million for this purpose.
The Senate amendment contained an identical provision.
The conference agreement includes a provision that would
authorize $248.4 million for defense nuclear waste disposal
activities of the Department of Energy for fiscal year 1996.

Subtitle B--Recurring General Provisions

Reprogramming (sec. 3121)
The House bill contained a provision (sec. 3121) that would
prohibit the reprogramming of funds in excess of 110 percent
of the amount authorized for the program concerned, or in
excess of $1.0 million above the amount authorized for the
program unless the Secretary of Energy notifies the
congressional defense committees and a period of 30 days has
elapsed subsequent to the receipt of notification. Should the
Department demonstrate that it has improved its procedures
for handling reprogramming requests, the Armed Services
Committee of the Senate and the National Security Committee
of the House would consider a return to a more flexible
reprogramming process.
The Senate amendment contained a similar provision.
The Senate recedes.
Limits on general plant projects (sec. 3122)
The House bill contained a provision (sec. 3122) that would
limit the initiation of ``general plant projects'' authorized
by the bill if the current estimated cost for any project
exceeds $2.0 million. However, the provision would require
the Secretary of Energy to provide the congressional defense
committees with notification and an explanation for a general
plant project cost variation that raises the cost of any
project above $2.0 million.
The Senate amendment contained a similar provision.
The Senate recedes.
Limits on construction projects (sec. 3123)
The House bill contained a provision (sec. 3123) that would
permit initiation and continuation of a Department of Energy
construction project if the estimated cost for the project
does not exceed 125 percent of the higher of: (1) the funds
authorized for the project; or (2) the most recent total
estimated cost presented to the Congress as justification for
such project. The Secretary of Energy would submit a detailed
report to the congressional defense committees for any
project that exceeds such limits, and the report would be
submitted within the 30 legislative days following a decision
to initiate or continue such a project.
The House provision would also specify that the 125 percent
limitation would not apply to any project with an estimated
cost below $5.0 million.
The Senate amendment contained a similar provision.
The Senate recedes.
Fund transfer authority (sec. 3124)
The Senate amendment contained a provision (sec. 3124) that
would authorize the transfer of Department of Energy funds to
other agencies of the government for performance of work for
which the funds were

[[Page H728]]
authorized and appropriated. The provision would permit another agency
to merge the transferred funds with that agency's authorized
and appropriated funds.
The provision would also authorize the Department to
transfer funds internally among its appropriations accounts,
up to a limit of five percent of the authorized amount.
The House bill contained a similar provision.
The House recedes with an amendment that would stipulate
that, for any such internal transfers or reprogrammings
pursuant to this section, weapons activities shall be
regarded by the Department as having higher priority than
environmental management activities or other defense
activities.
Authority for conceptual and construction design (sec. 3125)
The House bill contained a provision (sec. 3125) that would
limit the Secretary of Energy's authority to request
construction funding until the Secretary has certified a
conceptual design. If the cost of the conceptual design
exceeds $3.0 million, the Secretary must request the amount
from Congress before submitting a request for the
construction project. The Secretary may carry out
construction design services if their cost is less than $0.6
million. Greater costs for construction design would be
required to be authorized by law.
The Senate amendment contained a similar provision.
The Senate recedes.
Authority for emergency planning, design, and construction
activities (sec. 3126)
The House bill contained a provision (sec. 3126) that would
permit the Secretary of Energy to utilize available funds to
perform planning and design for any unauthorized Department
of Energy national security program construction project
based on the Secretary's determination that the design must
proceed expeditiously for the protection of public health,
safety, and property, or to meet the needs of the national
defense.
The Senate amendment contained a similar provision (sec.
3126).
The Senate recedes.
Funds available for all national security programs of the
Department of Energy (sec. 3127)
The House bill contained a provision (sec. 3127) that would
authorize amounts appropriated for management and support
activities and for general plant projects to be made
available for use, when necessary, in connection with all
national security programs of the Department of Energy.
The Senate amendment contained a similar provision.
The Senate recedes.
Availability of funds (sec. 3128)
The House bill contained a provision (sec. 3128) that would
authorize amounts appropriated for operating expenses or for
plant and capital equipment to remain available until
expended.
The Senate amendment contained a similar provision.
The Senate recedes.

Subtitle C--Program Authorizations, Restrictions, and Limitations

Authority to conduct a program relating to fissile materials
(sec. 3131)
The House bill contained a provision (sec. 3131) that would
authorize the Secretary of Energy to conduct a program to
improve fissile material protection, control, and
accountability in Russia. The provision would also require
notification to the Congress prior to obligation of funds.
The Senate amendment did not contain a similar provision.
The Senate recedes with an amendment.
The conferees agree to a provision that would authorize the
Secretary of Energy to conduct a program to improve fissile
material protection, control, and accountability in Russia.
The provision would also require the Secretary to provide a
semi-annual report to Congress on the obligation of funds for
the preceding six month period and on the plans for
obligation of those funds.
The conferees direct that each report shall include the
following: a forecast of planned expenditures, broken out by
major program elements and program achievements; and a
description of procedures to ensure that funds are used for
the purposes and activities for which they were authorized.
The report shall be submitted in classified and unclassified
forms.
National Ignition Facility (sec. 3132)
The House bill contained a provision (sec. 3132) that would
limit the expenditure of funds appropriated for the National
Ignition Facility (NIF) until the Secretary of Energy
determines that the NIF does not impede U.S. nuclear non-
proliferation objectives and then notifies the Congress.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would limit the
expenditure of construction funds for the NIF until the
Secretary makes the determination and notifies the Congress.
Tritium production program (sec. 3133)
The House bill contained a provision (sec. 3133a) that
would authorize $50.0 million, for a project that would
provide a long-term source of tritium, subsequent to the
Secretary of Energy's completion of a record of decision on
the tritium production program and the conclusion of
congressional hearings.
The Senate amendment contained a provision (sec. 3131) that
would authorize $50.0 million to conduct an assessment of
various types of reactors and an accelerator. The provision
would ensure that any new tritium production facility would
be located at the Savannah River Site. It would also
authorize $5.0 million from weapons activity funds for
tritium target work in reactors.
The Senate recedes with an amendment that would provide
for: $50.0 million to establish a program to provide a
tritium production source; $5.0 million for tritium target
work to be administered by the Idaho National Engineering
Laboratory; a new tritium facility at the Savannah River
Site; the Secretary's cost/benefit comparison between
performance of the tritium production mission and the fissile
materials disposition mission with a single multi-purpose
reactor project and performance of these missions with two
separate projects; and a long-term tritium production funding
plan to Congress within 45 days of enactment of this Act.
The conferees direct the Secretary of Energy to establish
both headquarters and field offices for the national tritium
production program within Defense Programs. The conferees
direct that these offices be adequately staffed by Federal
technical experts in accelerators, reactors, and other
relevant areas of science and technology. The conferees
further direct that the Savannah River Operations Office be
designated as the tritium production field office.
Payment of penalties assessed against Rocky Flats site (sec.
3134)
The House bill contained a provision (sec. 3103) that would
authorize the Secretary of Energy to pay for civil penalties
assessed in accordance with a federal facility agreement and
consent order against the Rocky Flats site in Colorado.
The Senate amendment contained a similar provision (sec.
3105).
The Senate recedes.
As indicated in the Senate report (S. Rept. 104-112), the
conferees are concerned about the diversion of Department of
Energy funds for payment of fines and penalties. The
conferees agree that this is an issue that warrants continued
monitoring.
Fissile materials disposition (sec. 3135)
The budget request included $70.0 million for the fissile
materials disposition program.
The Senate amendment contained a provision (sec. 3132) that
would authorize $70.0 million for the storage and disposition
of fissile materials that are excess to U.S. national
security needs. Of this amount, $10.0 million would be
available for a plutonium resource assessment.
The House bill contained a provision (sec. 3133(b)) that
would authorize $70.0 million for plutonium storage and
disposition, including the multipurpose advanced light water
reactor. Of that amount, $5.0 million would be available for
evaluating the conversion of plutonium to oxide fuel material
for the multipurpose reactor. Sufficient funds would also be
made available to fully assess the multipurpose reactor in
the Department of Energy's (DOE's) programmatic environmental
impact statement on fissile materials disposition.
The Senate recedes with an amendment.
The conferees authorize $70.0 million be made available for
evaluation and implementation of interim- and long-term
storage and disposition of plutonium, highly enriched
uranium, and other fissile materials that are excess to the
national security needs of the U.S. The conferees direct that
the evaluation include full consideration of light water and
gas turbine reactors. The conferees further direct that
sufficient funds be made available for the complete
consideration of multipurpose reactors in the DOE
programmatic environmental impact statement on fissile
materials disposition. The conferees endorse the views
expressed in the House Report (H. Rept. 104-131) regarding
the National Resource Center for Plutonium.
Tritium recycling (sec. 3136)
The Senate amendment contained a provision (sec. 3133) that
would require Department of Energy weapons program tritium
recycling to be carried out at the Savannah River Site. The
Senate provision would allow the Los Alamos National
Laboratory to conduct the following activities related to
tritium: (1) research on tritium properties; (2) inertial
confinement fusion tritium research; (3) technical assistance
for the Savannah River Site regarding the weapons
surveillance program, as directed by the Savannah River Site
Office. Except as noted above, the Savannah River Site Office
and its on-site contractor would be responsible for all
tritium-related national security activities of the U.S.
Department of Energy.
The House bill contained no similar provision.
The House recedes.
Manufacturing infrastructure for refabrication and
certification of nuclear weapons stockpile (sec. 3137)
The Senate amendment included a provision (sec. 3134) that
would authorize $143.0 million to carry out a program to meet
the manufacturing infrastructure requirements of the
President's Nuclear Posture Review through near-term
modernization of technology at the four production plants
cited in this section.
The House bill contained no similar provision.
The House recedes with an amendment. The conferees require
that this initiative provide for enhanced stockpile
surveillance, advanced manufacturing, and core stockpile

[[Page H729]]
management activities at these plants. This requirement includes
fundamental initiatives in advanced manufacturing, and
additional emphasis on advanced computerized manufacturing
and revalidation techniques at these plants. The conferees
direct the Secretary of Energy to ensure that requirements
for primary pit refabrication are addressed in the on-going
Programmatic Environmental Impact Statement (PEIS) on
Stockpile Stewardship and Management. Should it be
determined, based on the PEIS, that there is a need for such
a capacity, the conferees require the Secretary to undertake
a conceptual design study of an appropriately sized weapon
primary pit refabrication, manufacturing and reuse facility
and to consider the Savannah River Site for that role. Up to
$5.0 million would be available for this study from the
stockpile management program resources.
The conferees direct the Secretary to treat this initiative
as a high weapons activity program priority with new budget
authority. Further, the conferees authorize $118.2 million
above the DOE Stockpile Management budget request to pursue
this initiative in fiscal year 1996 at the four production
plants, without an impact on the current planned program
activities at these plants. The conferees further direct that
the remaining $24.8 million required for this initiative be
made available from core stockpile management,
reconfiguration and materials surveillance funds. The
conferees recommend that the rate of expenditure for this
initiative at each plant be proportionate to the plant's
allocation of the entire initiative.
Hydronuclear experiments (sec. 3138)
The Senate amendment contained a provision (sec. 3135) that
would authorize $50.0 million in fiscal year 1996 to prepare
the Nevada Test Site for hydronuclear experiments that would
yield four pounds (TNT equivalent) or less. The experiments
would be conducted to maintain confidence in the safety and
reliability of the nuclear weapons stockpile. Zero yield
experiments could be included in the fiscal year 1996
experiments as part of the test site preparation.
The House bill contained no similar provision.
The House recedes with an amendment providing $30.0 million
for such purposes.
Limitation on authority to conduct hydronculear tests (sec.
3139)
The Senate amendment contained a provision (sec. 3108) that
would limit this Act by confirming that nothing in this Act
authorizes hydronuclear tests and that nothing in this Act
amends or repeals the Exon-Hatfield Amendment (section 507 of
Public Law 102-377) which places limitations on U.S. nuclear
testing.
The House bill contained no similar provision.
The House recedes with an amendment.
Fellowship program for development of skills critical to the
Department of Energy nuclear weapons complex (sec. 3140)
The Senate amendment contained a provision (sec. 3136) that
would provide $10.0 million from Stockpile Management funds
to begin a science and engineering fellowship program for the
Pantex Plant, the Kansas City Plant, the Savannah River Site
and the Y-12 Plant. The program would provide educational and
research assistance to attract scientists and engineers with
the skills most relevant to plant employment opportunities
and mission requirements.
The House bill contained no similar provision.
The House recedes.
Limitation on use of funds for certain research and
development purposes (sec. 3141)
The Senate amendment contained a provision (sec. 3138) that
would limit the obligation of fiscal year 1996 Atomic Energy
Defense Activity funds for the Department of Energy
laboratory directed research and development (LDRD) program
and the Department of Energy technology transfer programs,
unless such activities support the national security missions
of the Department.
The House bill contained no similar provision.
The House recedes.
The conferees believe the scientific and engineering
challenges embodied in the emerging stockpile stewardship and
stockpile management programs are more than sufficient to
maintain the laboratories' preeminence in science and
engineering. Therefore, the laboratories should expeditiously
begin to focus the program resources on the pressing needs of
the nuclear weapons program.
Processing and treatment of high level nuclear waste and
spent nuclear fuel rods (sec. 3142)
The Senate amendment contained a provision (sec. 3139) that
would recommend $2.5 million for the electrometallurgical
processing activities at the Idaho National Engineering
Laboratory. This amendment would also recommend $45.0 million
to develop technologies for the processing of spent fuel rods
at the Savannah River Site and at the Idaho National
Engineering Laboratory.
The House bill contained no similar provision.
The House recedes with an amendment that would authorize
$45.0 million for the development of a program to respond
effectively to the new management requirements for spent
fuel. These new requirements are the result of a decision set
forth in the Department of Energy's Record of Decision, dated
May 30, 1995, prepared in relation to the Department's spent
nuclear fuel management program. That decision provided for
the consolidation at the Savannah River Site and at the Idaho
National Engineering Laboratory of spent nuclear fuel that
has been transported from various sites in the United States,
spent fuel from naval reactors, and spent fuel from foreign
reactors. The conferees authorize $30.0 million for the
Savannah River Site for the development of a program for the
processing and interim storage of aluminum clad spent fuel
rods and foreign spent fuel rods. The conferees authorize
$15.0 million for the Idaho National Engineering Laboratory
for a similar program for nonaluminum clad spent fuel rods,
foreign spent fuel rods, and naval spent fuel. The conferees
require the Secretary of Energy to submit to Congress a
detailed five-year implementation plan that would provide
cost estimates, completion dates, and technological
requirements for completion of the program.
The conferees also authorize, from technology development
program funds within Environmental Restoration and Waste
Management, $25.0 million for the development of
electrometallurgical waste treatment technologies at the
Argonne National Laboratory.
Protection of workers at nuclear weapons facilities (sec.
3143)
The Senate amendment contained a provision (sec. 3142) that
would authorize $10.0 million from the operations and
maintenance resources of the Environmental Restoration and
Waste Management Program to carry out activities related to
worker protection at nuclear weapons facilities.
The House bill contained no similar provision.
The House recedes.
Department of Energy declassification productivity initiative
(sec. 3144)
The budget request did not identify funding for the
Declassification Productivity Initiative that began in fiscal
year 1995.
The Senate amendment contained a provision (sec. 3140) that
would authorize $3.0 million from other national security
programs for the Declassification Productivity Initiative
(DPI) at the Department of Energy.
The House bill contained no similar provision.
The House recedes.
The conferees note that Executive Order 12958, signed by
the President on April 9, 1995, mandates that millions of
classified documents be declassified by the year 2000. While
it remains paramount that the Department maintain the
integrity of its national security information, the conferees
agree that substantial savings can be realized by reducing
the volumes of unduly classified documents, and by modifying
unnecessary and overly-burdensome classification policies.
The conferees authorize $3.0 million for the DPI and
recommend that the Department request appropriate funding for
the initiative in future budget submissions.

Subtitle D--Other Matters

Report on foreign tritium purchases (sec. 3151)
The House bill contained a provision (sec. 3141) that would
require the President to submit a report to Congress by
February, 1996, on the feasibility, cost, and ramifications
of purchasing tritium for the nuclear weapons program from
foreign suppliers.
The Senate amendment contained a similar provision (sec.
3163) that would require the President to submit the same
report to the congressional defense committees by May 30,
1997.
The Senate recedes with an amendment that would require the
report by May 1, 1996.
Study on nuclear test readiness postures (sec. 3152)
The House bill contained a provision (sec. 3142) that would
require the Secretary of Energy to submit a report to
Congress by February 15, 1996. The report would address cost
and other issues related to the Department of Energy's
capability to conduct underground nuclear testing within 6
months, 18 months, and 36 months from the date that the
President determines that such testing is necessary to ensure
the national security of the United States.
The Senate amendment contained no similar provision.
The Senate recedes.
Master plan for the certification, stewardship, and
management of warheads in the nuclear weapons stockpile
(sec. 3153)
The House bill contained a provision (sec. 3143) that would
require the Secretary of Defense, in consultation with the
Secretary of Energy, to submit a plan to Congress that would
describe in detail the proposed means of demonstrating the
capability to refabricate and certify old warheads and to
design and build new warheads. The provision would require
submission of the report not later than March 15, 1996.
The Senate amendment contained a provision (sec. 3165) that
would require the Secretary of Energy to produce, by March
15, 1996, and every year thereafter, a plan for maintaining
the enduring nuclear weapons stockpile. That plan would
involve at least six specific elements, to include a plan for
the manufacturing infrastructure, necessary to maintain the
nuclear weapons stockpile stewardship and management
programs.
The House recedes with an amendment that would explicitly
incorporate the requirements of the House provision into the
manufacturing infrastructure requirements section of the
Senate provision. Both sets of requirements are based on the
Department of Energy infrastructure requirements section of
the Nuclear Posture Review.

[[Page H730]]

Prohibition on international inspections of Department of
Energy facilities unless protection of restricted data is
certified (sec. 3154)
The House bill included a provision (sec. 3144) that would
prohibit international inspections of Department of Energy
facilities unless the Secretary of Energy certifies that
sensitive and/or restricted data has been adequately
safeguarded.
The Senate amendment did not contain a similar provision.
The Senate recedes with an amendment.
The conferees agree to a provision that would prohibit an
inspection of a nuclear weapons facility by the International
Atomic Energy Agency (IAEA) until the Secretary of Energy
certifies to Congress that no restricted data would be
revealed during the inspection.
The conferees direct the Secretary to ensure that the
certification to Congress is made prior to the inspection. If
the Secretary of Energy cannot provide certification in
advance of an inspection because of a short-notice (24-hour)
request, the Secretary shall provide certification no later
than seven days after the inspection has been conducted. The
certification shall also describe the steps taken by the
Secretary to ensure the protection of the restricted data
during the inspection.
Review of certain documents before declassification and
release (sec. 3155)
The conference agreement includes this provision to
strongly urge the President to immediately review and revise
Executive Order 12958, which provides for the automatic
declassification and public release of documents containing
National Security Information within five years, regardless
of prior review. Included under this order are Department of
Energy documents that potentially contain restricted data on
nuclear weapons design, production and testing, and
Department of Defense documents that potentially contain
information on nuclear weapons operations and support.
Automatic declassification thereby creates the risk of
releasing nuclear weapons information to potential
proliferators. This would constitute a grave risk to U.S.
national security and to non-proliferation efforts.
The conferees believe that the automatic declassification
of national security records that contain restricted data
would constitute a violation of the legal protections for
restricted data, mandated by the Atomic Energy Act of 1954,
as amended. The conferees recognize that the Executive Order
provides an exemption for the automatic declassification of
restricted data. However, the conferees are concerned that
some classified documents may contain restricted data
information without reflecting that fact on the
classification records. Therefore, there is no practical
means to ensure the protection of restricted data and apply
an automatic declassification system.
Accelerated schedule for environmental management activities
(sec. 3156)
The House bill contained a provision (sec. 3145) that would
permit the Secretary of Energy to accelerate the schedule for
environmental management activities and projects for any
specific Department of Energy defense nuclear facility site,
if such efforts would yield substantial long-term cost
savings and speed up the release of land for development.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment. The amended
provision would require the Secretary of Energy to submit a
report to Congress by May 1, 1996 regarding site selection
for the accelerated program.
Sense of Congress on certain environmental restoration
requirements (sec. 3157)
The Senate amendment contained a provision (sec. 3107) that
would express the sense of Congress that individuals in the
executive branch should not be held personally liable for
failure to comply with an environmental cleanup requirement
when the failure to comply is due to congressional
appropriations decisions.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
The conferees agree that no individual acting within the
scope of employment with a Federal agency or department
should be personally subject to civil or criminal sanctions
for any failure to comply with an environmental cleanup
requirement that is the result of inadequate funding.
Responsibility for defense programs emergency response
program (sec. 3158)
The Senate amendment contained a provision (sec. 3161) that
would require the Assistant Secretary of Energy for Defense
Programs to retain the responsibility for the Defense
Programs Radiological/Nuclear Accident Response Program. That
program includes the seven emergency response assets needed
to carry out the mission: the Aerial Measuring System; the
Atmospheric Release Advisory Capability; the Accident
Response Group; the Federal Radiological Monitoring and
Assessment Center; the Nuclear Emergency Search Team; the
Radiological Assistance Program; and the Radiation Emergency
Assistance Center/Training Site.
The House bill contained no similar provision.
The House recedes.
Requirements for Department of Energy weapons activities
budgets for fiscal years after fiscal year 1996 (sec.
3159)
The Senate amendment contained a provision (sec. 3162) that
would require the Department of Energy (DOE) to remedy past
and present items of congressional criticism related to the
clarity of the Department's budget submission. The Senate
provision would require the Department to explicitly relate
its budget submission to the requirements of the Nuclear
Posture Review.
The House bill contained no similar provision.
The House recedes.
Report on hydronuclear testing (sec. 3160)
The Senate amendment contained a provision (sec. 3164) that
would require the Secretary of Energy to direct the Los
Alamos and Lawrence Livermore National Laboratories to
prepare a report that would assess the advantages and
disadvantages of permitting alternative limits for nuclear
test yields, from at least four pounds to 20 tons, as related
to the safety and reliability of the nuclear weapons
stockpile. In addition to the yields explicitly cited, the
report would address other yields, as appropriate, but would
remain focused on the advantages and disadvantages of sub-
kiloton testing, as related to stockpile safety and
reliability.
The House bill contained no similar provision.
The House recedes with an amendment that adjusts the
nuclear test yields of interest.
Applicability of Atomic Energy Community Act of 1955 to Los
Alamos, New Mexico (sec. 3161)
The Senate amendment contained a provision (sec. 3166) that
would amend and specify certain requirements of the Atomic
Energy Community Act of 1955 for the community of Los Alamos,
New Mexico.
The House bill contained no similar provision.
The House recedes.
Sense of Congress regarding shipments of spent nuclear fuel
(sec. 3162)
The Senate amendment contained a provision (sec. 3167) that
would express a sense of the Senate that the Secretary of
Defense, the Secretary of Energy, and the Governor of the
State of Idaho should continue good faith negotiations for
the purpose of reaching an agreement on the issue of
shipments of spent nuclear fuel from naval reactors.
The House bill included no similar provision.
The House recedes with an amendment that would express the
sense of Congress that: (1) the Congress recognizes the need
to implement the terms, conditions, rights, and obligations
contained in the settlement agreement reached between the
United States and the State of Idaho regarding shipment,
examination, and storage of naval spent nuclear fuel at
Idaho; and (2) that funds requested by the President to carry
out the settlement agreement and consent order should be
appropriated for that purpose.

legislative provisions not adopted

Education program for personnel critical to the nuclear
weapons complex
The Senate amendment contained a provision (sec. 3137) that
would authorize $10.0 million from the Stockpile Stewardship
Program to conduct an education program designed to establish
a long-term supply of personnel with skills critical to the
nuclear weapons complex. The program would: (1) encourage and
assist students in the study of science, mathematics, and
engineering; (2) enhance teaching skills in critical areas;
and (3) increase scientific understanding of the general
public.
The House bill contained no similar provision.
The Senate recedes.
The conferees agree to authorize $10.0 million from the
Stockpile Stewardship Program. The conferees note that
because existing legislation authorizes such activities, up
to $10.0 million would be authorized for this purpose,
without a separate authorization provision.
Applicability of Atomic Energy Community Act of 1955 to Los
Alamos, New Mexico (sec. 3161)
The Senate amendment contained a provision (sec. 3166) that
would amend and specify certain requirements of the Atomic
Energy Community Act of 1955 for the community of Los Alamos,
New Mexico.
The House bill contained no similar provision.
The House recedes.
Authority to reprogram funds for disposition of certain spent
nuclear fuel
The Senate amendment contained a provision (sec. 3141) that
would authorize the Secretary of Energy to reprogram up to
$5.0 million in fiscal year 1996 funds available to the
Department for the disposition of spent nuclear fuel in the
Democratic People's Republic of Korea (DPRK), in order to
meet International Atomic Energy Agency (IAEA) safeguard
standards and fulfill the October 21, 1994 agreement between
the United States and the DPRK.
The House bill did not contain a similar provision.
The Senate recedes.
In order to meet International Atomic Energy Agency
safeguard standards and fulfill the October 21, 1994
agreement between the United States and the DPRK, the
conferees recommend $3.6 million for the disposition of

[[Page H731]]
spent nuclear fuel. In authorizing these funds, the conferees make no
judgment regarding the merits of the October 1994 agreement.

Title XXXII--Defense Nuclear Facilities Safety Board

legislative provisions

legislative provisions adopted

Authorization (sec. 3201)
The House bill contained a provision (sec. 3201) that would
authorize $17.0 million for the Defense Nuclear Facilities
Safety Board.
The Senate amendment contained an identical provision (sec.
3201).
the conferees recommend $17.0 million for the Board.

Title XXXIII--National Defense Stockpile

legislative provisions

legislative provisions adopted

Subtitle A--Authorization of Disposals and Use of Funds

Disposal of chromite and manganese ores and chromium ferro
and manganese metal electrolytic (sec. 3303)
The House bill contained a provision (sec. 3302) that would
require the granting of right of first refusal to domestic
ferroalloy upgraders, for certain disposals.
The Senate amendment contained a similar provision (sec.
3403).
The House recedes with a technical amendment regarding the
definition of a domestic ferroalloy upgrader.
Restrictions on disposal of manganese ferro (sec. 3304)
The House bill contained a provision (sec. 3303) that would
require that certain grade manganese ferro not be disposed of
from the National Defense Stockpile until the disposal of
lower grade inventory material had been completed. The
provision would also require that certain grade manganese
ferro only be sold for remelting in a submerged arc
ferromanganese furnace.
The Senate amendment contained a similar provision (sec.
3404) that would require certain grade manganese ferro to be
sold only for remelting by a domestic ferroalloy producer.
The House recedes.
Titanium initiative to support battle tank upgrade program
(sec. 3305)
The House bill contained a provision (sec. 3304) that would
direct the transfer of titanium sponge from the National
Defense Stockpile to the Army for use in the weight reduction
portion of the main battle tank upgrade program. The transfer
would be without cost to the Army, except for transportation
and similar costs.
The Senate amendment contained no similar provision.
The Senate recedes.

Subtitle B--Programmatic Change

Transfer of excess defense-related materials to stockpile for
disposal (sec. 3311)
The Senate amendment contained a provision (sec. 3405) that
would direct the transfer of suitable, uncontaminated
Department of Energy inventory items to the National Defense
Stockpile for disposal.
The House bill contains no similar provision.
The House recedes.

LEGISLATIVE PROVISIONS NOT ADOPTED

Disposal of obsolete and excess materials contained in the
National Defense Stockpile
The Senate amendment contained a provision (sec. 3402) that
would authorize the disposal of materials from the National
Defense Stockpile.
The House bill contained no similar provision.
The Senate recedes.
The defense committees and the conferees have recommended
that new disposal authority be granted in the reconciliation
process, rather than authorization.

Title XXXIV--Naval Petroleum Reserves

legislative provisions

legislative provisions adopted

Subtitle A--Administration of Naval Petroleum Reserves

Authorization of appropriations (sec. 3401)
The House bill contained a provision (sec. 3401) that would
authorize fiscal year 1996 appropriations for the operation
of the Naval Petroleum Reserves.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.
Price requirement on sale of certain petroleum during fiscal
year 1996 (sec. 3402)
The House bill contained a provision (sec. 3402) that would
require that the sale of any oil produced at the Naval
Petroleum Reserves be transacted for a price that is not less
than 90 percent of the sales price of comparable petroleum
from the same area, as estimated by the Secretary of Energy.
The Senate amendment contained no similar provision.
The Senate recedes.
Extension of operating contract for naval petroleum reserve
numbered 1. (sec. 3403)
The conference agreement contains a provision which amends
Section 3503 of the National Defense Authorization Act of
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3111) to
extend the Department of Energy's authority to operate the
Naval Petroleum Reserve Numbered 1.

Subtitle B--Sale of Naval Petroleum Reserve

Future of Naval Petroleum and Oil Shale Reserves (secs. 3411-
3416)
The House bill contained a provision (sec. 3403) that would
provide for the sale of the Naval Petroleum Reserve Numbered
1 (NPR-1), also known as Elk Hills located in Kern County,
California. The House bill also contained a provision (sec.
3404) that would require the Secretary of Energy to conduct a
study to determine what should be done with the other five
remaining reserves in the Naval Petroleum and Oil Shale
Reserves.
The Senate amendment contained similar provisions (secs.
3301 and 3302).
The conference agreement includes several provisions
related to the future of the Naval Petroleum and Oil Shale
Reserves that would provide for the sale of NPR-1 by
competitive bid within two years of enactment. The agreement
would also require the Secretary of Energy to submit a report
that would recommend a course of action that would maximize
the value of the five remaining reserves to the federal
government.
The conferees believe that the sale of NPR-1 can be
justified based on the fact that there is no longer a
military need for these reserves. Since the Arab oil embargo,
the likelihood of a sustained interruption in supply has
fallen and the market has shown itself to be responsive in
pricing and allocating oil during periods of uncertain
supply.
In addition, the conferees are concerned about the long-
term implications of government participation in what has
become a commercial oil business. The conferees believe that
producing and selling oil and natural gas should be performed
within the private sector. That belief is shared by the
administration which also proposed the sale of the reserve.
The sale of NPR-1 will help save the federal government
over a billion dollars in operating costs and several hundred
million dollars in interest payments. These savings are in
addition to the increased tax revenues and the $1.5 to $2.5
billion in receipts that will result from the sale. Even
after deducting the lost annual revenues resulting from the
sale, these savings and receipts will result in a substantial
net increase to the Treasury.
The conference agreement contains a number of safeguards so
that the sale of NPR-1 will ensure the government realizes
the maximum amount of revenues possible. The provisions would
require the Secretary of Energy to obtain credible appraisals
of the value of the reserve before setting a minimum
acceptable sales price. In addition, the valuation must
include all existing infrastructure, the estimated quantity
of petroleum and natural gas in the reserve, and the
anticipated revenue stream that the Treasury would receive if
the reserve was not sold. The Secretary could not accept bids
lower than the minimum acceptable price and could not enter
into contracts for sale until the end of a 31-day period
following notification to Congress. The proceeds from the
sale would be deposited in the Treasury.
In addition, if the Secretary of Energy and the Director of
the Office of Management and Budget jointly determine that
the sale of NPR-1 is proceeding in a manner that is
inconsistent with the best interests of the United States,
the Secretary may suspend the sale. The Secretary must then
wait for further legislation authorizing the continuation of
the sale. The conferees believe the Secretary should suspend
the sale only after all efforts have been made to ameliorate
any difficulties in the sale of the reserve.
In the event the Secretary is not able to comply with the
deadlines included in these provisions, the Secretary and the
Director of the OMB would be required to notify Congress and
submit a plan of alternative action.
The conference agreement provides for the transfer of a
current environmental permit (50 CFR 13.25) in order to allow
the purchaser to continue the operation of the field with all
the environmental safeguards provided by the federal
government. In addition, the conferees expect that this will
ensure that the value of the field will not be diminished by
the uncertain timing of obtaining a new permit.
In response to a potential legal claim by the State of
California, on behalf of the California State Teachers
Retirement Fund, the provisions would set aside nine percent
of the net proceeds in a contingent fund. These funds would
be available, subject to appropriations, for the payment of
any valid claims resulting from a settlement between the
Secretary of Energy and the State of California or a
judgement by a court of competent jurisdiction. The conferees
expect that California's release of its claim would be
contingent upon an appropriation of funds per any settlement
agreement or court decision.

Title XXXV--Panama Canal Commission

legislative provisions

legislative provisions adopted

Panama Canal Commission (Title XXXV)
The House call contained several provisions (secs. 3501-
3503) that would provide the authorization of expenditures
for the Panama Canal Commission revolving fund.
The Senate amendment contained similar provisions (secs.
3501-3502).
The Panama Canal Commission does not draw from U.S.
taxpayer funds for operation of the Canal, but operates on a
self-sustaining basis, utilizing tolls and other revenues to
cover its operating, administrative, and

[[Page H732]]
capital improvements expenses. The Senate amendment would provide for
slightly greater allowances for official representation
expenses than the House bill. The Senate amendment would also
limit the cost of vehicles purchased for use by the
Commission. The House bill contained a requirement that the
vehicles be built in the United States.
The House recedes on these items. However, the conferees
note that the Commission has in the past purchased vehicles
built in the United States and would encourage that practice
to continue.
The House bill included additional provisions (secs. 3521-
3531), not in the Senate amendment, that would facilitate the
transition and the operation of the Canal as an autonomous
entity after it is transferred to Panama at the end of 1999.
Section 3522 of the National Defense Authorization Act for
Fiscal Year 1993 (Public Law 102-484) required that the
President review and report on possible changes that would
ease the transition process. The legislative provisions
contained in sections 3521-3531 of the House bill would
implement, with only minor clarifying changes, the
administration's recommendations contained in the report
transmitted to the Congress on April 12, 1994.
The Senate recedes with an amendment that would delete
section 3524 of the House bill entitled ``International
Advisors''.
The conferees agree that the Canal's governing board of
supervisors can consult with and obtain expert advice from
those in the international shipping and financial community
without the necessity of a legislative provision.

Division D--Federal Acquisition Reform

legislative provisions

legislative provisions adopted

Overview
Acquisition reform provisions with government-wide
application were included in title VIII of the House bill.
Subsequently, the House passed H.R. 1670, a freestanding bill
which addressed many of the same, as well as, other issues.
The Senate amendment contained a number of acquisition policy
provisions. The conferees considered all of these provisions
before agreeing to include the following legislation in the
conference agreement. The following is a section-by-section
description of the provisions adopted by the conferees.

Title XLI--Competition

Efficient competition (sec. 4101)
The conference agreement includes a provision that would
amend section 2304 of title 10 and section 253 of title 41.
United States Code. The provision would direct that the
Federal Acquisition Regulation ensure that the requirement to
obtain full and open competition is implemented in a manner
that is consistent with the need to efficiently fulfill the
government's requirements. This provision makes no change to
the requirement for full and open competition or to the
definition of full and open competition.
Efficient approval procedures (sec. 4102)
The conference agreement includes a provision that would
amend section 2304 of title 10 and section 253 of title 41,
United States Code, by raising the dollar thresholds for
contracts that require the approval of the use of other than
competitive procedures by higher level agency officials.
Efficient competitive range determinations (sec. 4103)
The conference agreement includes a provision that would
allow a contracting officer, in procurements involving
competitive negotiations, to limit the number of proposals in
the competitive range to the greatest number that would
permit an efficient competition among the most highly rated
competitors. The conferees intend that the determination of
the competitive range be made after the initial evaluation of
the proposals, on the basis of the rating of those proposals.
The rating shall be made on the basis of price, quality and
other factors specified in the solicitation for the
evaluation of the proposals.
Preaward debriefings (sec. 4104)
The conference agreement includes a provision that would
require that, prior to a contract award, a contracting
officer provide a debriefing to any interested offerors on
the reasons for that offeror's exclusion from the competitive
range in a competitive negotiation. The provision would
specify information that must be provided to an unsuccessful
offeror upon written request for a debriefing, as well as
limitations on the types of information that may be provided.
The provision also would require the Federal Acquisition
Regulation to include a provision encouraging the use of
alternative dispute resolution techniques to provide
informal, expeditious, and inexpensive procedures for an
offeror to consider using before filing a protest.
Design-build selection procedures (sec. 4105)
The conference agreement includes a provision that would
authorize the use of two-phase selection procedures for
entering into contracts for the design and construction of a
public building, facility, or work. The provision details the
considerations that would be used by a contracting officer to
determine whether to use two-phase selection procedures and
describes the process to be followed under the two-phase
selection procedure. The provision would also limit the
number of proposals to be considered in the second phase to
no more than five, unless the agency determines that a
greater number is in the government's interest. This
provision is not intended to modify the Brooks Architect-
Engineers Act.

Title XLII--Commercial Items

Commercial item exception to requirement for cost or pricing
data (sec. 4201)
The conference agreement includes a provision that would
amend section 2306a of title 10 and section 254b of title 41,
United States Code, to exempt suppliers of commercial items
under contracts and subcontracts with federal agencies from
the requirement to submit certified cost and pricing data.
The provision would include the requirement that, in the
cases of such contracts or subcontracts, contracting officers
shall require the submission of data other than certified
cost or pricing data to the extent necessary to determine
price reasonableness. In recognition of the authority of the
General Accounting Office to audit contractor records, the
conferees have removed the specific audit authorities in the
Federal Acquisition Streamlining Act of 1994 (Public Law 103-
355) that relate to information supplied by commercial
suppliers in lieu of certified cost and pricing data.
Application of simplified procedures to certain commercial
items (sec. 4202)
The conference agreement includes a provision that would
allow the use of simplified procedures for the acquisition of
commercial items with a purchase value of $5.0 million or
less when a contracting officer reasonably expects that
offers in response to a solicitation would only include
commercial items. The provision would specify that
implementing regulations provide that all responsible
offerors in procurements conducted under this authority be
permitted to submit a bid, proposal, or quotation that shall
be considered by the agency. The conferees intend that the
flexible notice provision be implemented in a manner that
would provide offerors with a reasonable opportunity to
respond. The provision would also prohibit sole source
procurement unless the need is justified in writing in
accordance with section 2304 of title 10 or section 253 of
title 41, United States Code. The authority for the use of
simplified procedures under this section would expire at the
end of the three-year period, beginning on the date of the
issuance of the final implementing regulations.
Inapplicability of certain procurement laws to commercially
available off-the-shelf items (sec. 4203)
The conference agreement includes a provision that would
require that the Federal Acquisition Regulation include a
list of provisions that are inapplicable to contracts for the
procurement of commercially available off-the-shelf items.
The list would be required to include each provision of law
that, in the opinion of the Administrator of the Office of
Federal Procurement Policy, imposes on persons who have been
awarded contracts by the federal government for the
procurement of commercially available off-the-shelf products
government-unique policies, procedures, requirements, or
restrictions for the procurement of property or services
unless the Administrator determines that to do so would not
be in the best interest of the United States. The list would
include provisions of law uniquely applicable to government
contractors, but would not include generally applicable
provisions of law. The provision would specifically preclude
several categories of statutes from being included on the
list, such as any provision of law that provides for civil or
criminal penalties. The provision would define commercially
available off-the-shelf items as commercial items that are
sold in substantial quantities to the general public and that
are offered to the federal government in the same form in
which they have been sold to the general public. The
provision would specifically exclude from that definition
bulk cargo such as agricultural products and petroleum
products.
Amendment to commercial items definition (sec. 4204)
The conference agreement includes a provision that would
make a clarifying amendment to the definition of ``commercial
services'' in section 403(12)(F) of title 41, United States
Code. For the purpose of this section, market prices are
current prices that are established in the course of ordinary
trade between buyers and sellers free to bargain and that can
be substantiated from sources independent of the offeror.
Inapplicability of cost accounting standards to contracts and
subcontracts for commercial items (sec. 4205)
The conference agreement includes a provision that would
exempt contracts and subcontracts for commercial items from
the application of the cost accounting standards promulgated
under section 422 of title 41, United States Code. The Cost
Accounting Standards Board, in consultation with the Director
of the Defense Contract Audit Agency, shall establish
guidance, consistent with commercial accounting systems and
practices, to ensure that contractors appropriately assign
costs to contracts (other than firm, fixed-price contracts)
that are covered by the exemption for contracts or
subcontracts where the price negotiated is based on
established catalog or market prices of commercial items sold
in substantial quantities to the general public. The
conferees direct that the Board issue standards to implement
this provision.

[[Page H733]]

Title XLIII--Additional Reform Provisions

Subtitle A--Additional Acquisition Reform Provisions

Elimination of certain certification requirements (sec. 4301)
The conference agreement includes a provision that would
eliminate a number of statutory certification requirements
for contractors and subcontractors with the federal
government. The conferees note that the underlying
requirement to comply with the specified statutes is not
affected by the elimination of the contractor or
subcontractor certification requirements. The conferees have
included a general requirement that the Administrator of the
Office of Federal Procurement Policy (OFPP) amend the Federal
Acquisition Regulation to remove regulation-based
certification requirements after a suitable period for public
notice and comment. The provision would mandate the heads of
executive agencies to follow a similar process. The provision
also includes a prohibition on the imposition of future
contractor and subcontractor certification requirements,
unless such certification is imposed by statute or is
justified in writing and approved by the Federal Acquisition
Regulatory Council and the Administrator of OFPP.
Authorities conditioned on Federal Acquisition Computer
Network (FACNET) capability (sec. 4302)
The conference agreement includes a provision that would
amend section 5061 of the Federal Acquisition Streamlining
Act of 1994 (Public Law 103-484) to allow a test of
alternative procurement procedures. The amendment would
remove a requirement that the test of alternative procurement
procedures be contingent on the implementation of full
federal acquisition computer network (FACNET) electronic
commerce procedures. The Provision would also amend
subsection (e) of section 427 of title 41, United States
Code, to limit the linkage between full FACNET implementation
and federal agency use of simplified acquisition procedures
to a requirement that an agency must deploy a full FACNET
capability by December 31, 1999 or revert back to a threshold
of $50,000 on the value of procurements below which
simplified procedures are authorized.
International competitiveness (sec. 4303)
The conference agreement includes a provision that would
amend section 21(e)(2) of the Arms Export Control Act to
allow the President to waive recoupment charges for non-
recurring research and development costs on foreign military
sales of major defense equipment under certain conditions.
The provision would authorize the presidential waiver if it
is determined that the levy of charges would likely result in
the loss of a sale or the elimination of charges would result
in savings to the government in the form of lower per unit
costs for a particular item of equipment. Under this
provision, the President would also be authorized to waive
any portion of a recoupment charge attributable to a
correction in an earlier estimate of a production quantity
base used to calculate the pro rata recoupment charges for a
particular item. The provision includes language that would
render the use of the waiver subject to the President's
identification and Congressional appropriation of an offset
for any revenue lost as a result of the waiver authority,
from fiscal year 1997 through fiscal year 2005.
Procurement integrity (sec. 4304)
The conference agreement includes a provision that would
amend section 423 of title 41, United States Code, to revise
the restrictions on obtaining or disclosing contractor bid or
proposal information or source selection information. The
provision would prohibit, except as provided by law, present
or former federal employees from knowingly obtaining or
disclosing such information before the award of a contract to
which information relates. This provision would authorize
criminal penalties for a violation of such prohibition when
such information is exchanged for something of value or for
the purpose of allowing anyone to obtain a competitive
advantage in the award of a federal contract. The provision
would authorize civil and administrative penalties for such
violations as well.
The provision would also replace the current agency-
specific recusal and post-employment restrictions applicable
to agency employees involved in certain specified procurement
actions with uniform standards applicable to all federal
agencies. The post-employment restrictions would apply to
designated officials involved in procurements over $10.0
million for a one-year period.
The recusal requirements apply to employees who are
participating personally and substantially in a procurement.
These requirements cover employees who participate personally
and substantially in one or more of the following activities:
the drafting of a specification developed for that
procurement; the review and approval of a specification
developed for that procurement; the preparation or issuance
of a procurement solicitation in that procurement; the
evaluation of bids or proposals for that procurement; the
selection of sources for that procurement; the conduct of
negotiations in the procurement; the review and approval of
the award, modification, or extension of a contract in that
procurement; such other specific procurement actions as may
be specified in implementing regulations.
The provision also would provide civil and administrative
penalties for contractors as well as for agency employees who
violate the recusal requirements or the post-employment
restrictions.
Further acquisition streamlining provisions (sec. 4305)
The conference agreement includes a provision that would
consolidate a number of provisions in the Office of Federal
Procurement Policy Act concerning findings, policies, and
purposes. The provision would also repeal the reporting
requirements in section 8 of the Act as well as make
clarifying changes to section 11 of the Act regarding the
permanent authorization of appropriations for the Office of
Federal Procurement Policy.
Value engineering for federal agencies (sec. 4306)
The conference agreement includes a provision that would
amend the Office of Federal Procurement Policy Act by adding
a new section that would require federal agencies to
establish and maintain cost-effective value engineering
procedures and processes.
Acquisition workforce (sec. 4307)
The conference agreement includes a provision that would
establish a series of policies and procedures for the
management of the acquisition workforce in executive agencies
other than the Department of Defense. The provision would
require the head of each executive agency, after consultation
with the Administrator of the Office of Federal Procurement
Policy, to establish procedures and policies for the
accession, education, training, and career development and
performance incentives for the acquisition workforce of the
agency. The provision would place primary management
authority for the acquisition workforce under the control of
the senior procurement executive of each agency. The
provision would establish statutory standards for the
executive agencies in areas such as career development and
worker qualification requirements. The provision would also
require each agency to establish separate funding levels for
acquisition workforce education and training, and would
authorize tuition reimbursement programs for personnel
serving in acquisition positions.
Demonstration project relating to certain personnel
management policies and procedures (sec. 4308)
The conference agreement includes a provision that would
encourage the Secretary of Defense to embark on a
demonstration program, or programs, to test the feasibility
and desirability of proposals to improve personnel management
policies or procedures for the Department of Defense
acquisition workforce. The provision would modify authority
under section 4703 of title 5, United States Code, with
respect to a demonstration project carried out under this
section for the three-year period, beginning on the date of
enactment of this Act.
Cooperative purchasing (sec. 4309)
The conference agreement includes a provision that would
suspend the authority of the Administrator of General
Services under section 481(b)(2) of title 40, United States
Code, to allow state and local governments to use the federal
supply schedules. The provision would suspend the authority
until the later of the period ending 18 months after the date
of enactment of this Act or the period ending 30 days after
the date after the Administrator has reviewed a General
Accounting Office report that assesses the effects of state
and local governments use of the federal supply schedules and
has submitted the report and comments on the report to
Congress. The conferees direct that the General Accounting
Office include an assessment of the impact on costs to
federal agencies from the use of federal supply schedules by
state and local governments.
Procurement notice technical amendment (sec. 4310)
The conference agreement includes a provision that would
make a clarifying amendment to section 18(c)(1)(E) to the
Office of Federal Procurement Policy Act.
Micro-purchases without competitive quotations (sec. 4311)
The conference agreement includes a provision that would
amend section 428 of title 41, United States Code, to provide
greater flexibility to executive agencies in determining who
may make purchases below $2,500 without being required to
receive competitive quotations.

Subtitle B--Technical Amendments

Amendments related to Federal Acquisition Streamlining Act of
1994 (sec. 4321)
The conference agreement includes a provision that would
make a series of technical and clarifying changes to the
Federal Acquisition Streamlining Act of 1994 (Public Law 103-
355).
Miscellaneous amendments to federal acquisition laws (sec.
4322)
The conference agreement includes a provision that would
make a series of clarifying and technical changes to
acquisition statutes throughout the United States Code.

Title XLIV--Effective Dates and Implementation

Effective date and applicability (sec. 4401)
The conference agreement includes a provision that would
provide that amendments made by this division would take
effect on the date of enactment except as otherwise

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provided. The provision would provide that amendments made by this
division apply to solicitations issued, unsolicited proposals
received, any contract entered into pursuant to such a
solicitation or proposal, and ongoing contracting actions, on
or after the date 30 days after final implementing
regulations are published but no later than January 1, 1997.
Implementing regulations (sec. 4402)
The conference agreement includes a provision that would
establish a regulatory implementation schedule for the
amendments within this division.

DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM

legislative provisions

legislative provisions adopted

Overview
The Senate amendment contained provisions with government-
wide acquisition and management issues related to information
technology. The House bill also contained provisions relating
to bid protest jurisdictions. The conferees considered all of
these provisions before agreeing to include Division E in the
conference agreement.
The conferees agree that:
(1) federal information systems are critical to the lives
of every American;
(2) the efficiency and effectiveness of the federal
government is dependent upon the effective use of
information;
(3) the federal government annually spends billions of
dollars operating obsolete information systems;
(4) the use of obsolete information systems severely limits
the quality of the services that the federal government
provides, the efficiency of federal government operations,
and the capabilities of the federal government to account for
how taxpayer dollars are spent;
(5) the failure to modernize federal government information
systems and the operations they support, despite efforts to
do so, has resulted in the waste of billions of dollars that
cannot be recovered;
(6) despite improvements achieved through implementation of
the Chief Financial Officers Act of 1990, most federal
agencies cannot track the expenditures of Federal dollars
and, thus, expose the taxpayers to billions of dollars in
waste, fraud, abuse, and mismanagement;
(7) poor planning and program management and an
overburdened acquisition process have resulted in the
American taxpayers not getting their money's worth from the
expenditure of $200,000,000,000 on information systems during
the decade preceding the enactment of this Act;
(8) the federal government's investment control processes
focus too late in the system lifecycle, lack sound capital
planning, and pay inadequate attention to business process
improvement, performance measurement, project milestones, or
benchmarks against comparable organizations;
(9) many federal agencies lack adequate personnel with the
basic skills necessary to effectively and efficiently use
information technology and other information resources in
support of agency programs and missions;
(10) federal regulations governing information technology
acquisitions are outdated, focus on paperwork and process
rather than results, and prevent the federal government from
taking timely advantage of the rapid advances taking place in
the competitive and fast changing global information
technology industry;
(11) buying, leasing, or developing information systems
should be a top priority for federal agency management
because of the high potential for the systems to
substantially improve Federal Government operations,
including the delivery of services to the public; and,
(12) structural changes in the federal government,
including elimination of the Brooks Act (section 111 of the
Federal Property and Administrative Services Act of 1949, as
amended), are necessary in order to improve federal
information management and to facilitate federal government
acquisition of the state-of-the-art information technology
that is critical for improving the efficiency and
effectiveness of federal government operations.
The conferees agree that action is necessary on the part of
Congress in order to:
(1) create incentives for the federal government to
strategically use information technology in order to achieve
efficient and effective operations of the federal government,
and to provide cost effective and efficient delivery of
federal government services to the taxpayers;
(2) provide for the cost effective and timely acquisition,
management, and use of effective information technology
solutions;
(3) transform the process-oriented procurement system of
the federal government, as it relates to the acquisition of
information technology, into a results-oriented procurement
system;
(4) increase the responsibility and authority of officials
of the Office of Management and Budget and other federal
government agencies, and the accountability of such officials
to Congress and the public, in the use of information
technology and other information resources in support of
agency missions;
(5) ensure that federal government agencies are responsible
and accountable for achieving service delivery levels and
project management performance comparable to the best in the
private sector;
(6) promote the development and operation of multiple-
agency and government-wide, inter-operable, shared
information resources to support the performance of federal
government missions;
(7) reduce fraud, waste, abuse, and errors resulting from a
lack of, or poor implementation of, federal government
information systems;
(8) increase the capability of the federal government to
restructure and improve processes before applying information
technology;
(9) increase the emphasis placed by federal agency managers
on completing effective capital planning and process
improvement before applying information technology to the
executing of plans and the performance of agency missions;
(10) coordinate, integrate, and, to the extent practicable,
establish uniform federal information resources management
policies and practices in order to improve the productivity,
efficiency, and effectiveness of federal government programs
and the delivery of services to the public;
(11) strengthen the partnership between the federal
government and state, local, and tribal governments for
achieving federal government missions, goals, and objectives;
(12) provide for the development of a well-trained core of
professional federal government information resources
managers; and,
(13) improve the ability of agencies to share expertise and
best practices and coordinate the development of common
application systems and infrastructure.
The following is a section-by-section description of the
provisions adopted by the conferees. Section 5001 sets forth
a short title ``The Information Technology Management Reform
Act of 1996'' and Section 5002 sets forth definitions.

Title LI--Responsibility for Acquisition of Information Technology

Subtitle A--General Authority

Repeal of central authority of the Administrator of General
Services (sec. 5101)
The conference agreement includes a provision that would
repeal section 111 of the Federal Property and Administrative
Services Act of 1949, as amended.

Subtitle B--Director of the Office of Management and Budget

Responsibility of Director (sec. 5111)
The conference agreement includes a provision that would
require the Director of the Office of Management and Budget
to comply with this title. The conferees anticipate that
these provisions will be reviewed upon reauthorization of the
Paperwork Reduction Act prior to September 30, 2001.
The conferees agree that in undertaking activities and
issuing guidance in accordance with this subtitle, the
Director shall promote the integration of information
technology management with the broader information resource
management processes in the agencies.
The conferees encourage the establishment of interagency
groups to support the Director by examining areas of
information technology, to include: telecommunications,
software engineering, common administrative and programmatic
applications, computer security and information policy, all
of which would benefit from a government-wide or multi-agency
perspective; the promotion of cooperation among agencies in
information technology matters; the review of major or high
risk information technology acquisitions; and the promotion
of the efficient use of information technology that supports
agency missions. The interagency groups should: identify
common goals and requirements; develop a coordinated approach
to meeting certain agency requirements, such as budget
estimates and procurement programs; identify opportunities to
share information that would improve the agency performance
and reduce costs of agency programs; make recommendations
regarding protocols and other standards for information
technology, including security standards; and make
recommendations concerning interoperability among agency
information systems. The conferees also encourage the
establishment of temporary special advisory groups, composed
of experts from industry, academia, and the Federal
Government, to review government-wide information technology
programs, major or high risk information technology
acquisitions, and information technology policy.
Capital planning and investment control (sec. 5112)
The conference agreement includes a provision that would
describe the Director's responsibilities under 44 USC 3504(h)
that relate to promoting and sustaining responsibility and
accountability for improvement of the acquisition, use, and
disposal of information technology by executive agencies.
The conferees agree that the Director, in developing a
process related to major agency capital investments, should:
ensure that the process identifies opportunities for
interagency cooperation; ensure the success of high risk and
high return investments; develop requirements for agency
submission of investment information needed to execute the
process; ensure that agency information resources management
plans are integrated into the agency's program plans,
financial management plans, and budgets for the acquisition
and use of information technology designed to improve agency
performance and the accomplishment of agency missions; and
identify three categories of information systems
investments--(1) high risk--those

[[Page H735]]
projects that, by virtue of their size, complexity, use of innovative
technology, or other factors, have an especially high risk of
failure; (2) high return--those projects that by virtue of
their total potential benefits, in proportion to their costs,
have particularly unique value to the public; and (3)
crosscutting--those projects of individual agencies, with
shared benefit to or impact on other federal agencies and
state or local governments, that require enforcement of
operational standards or elimination of redundancies.
Finally, the conferees also agree that the Director, to
encourage the use of best business and administrative
practices, should identify and collect information regarding
best practices, to include information on the development and
implementation of best practices by the executive agencies.
The Director should provide the executive agencies with
information on best practices, and advice and assistance
regarding the use of best practices.
Performance-based and results-based management (sec. 5113)
The conference agreement includes a provision that would
require the Director to encourage performance and results-
based management for agency information technology programs.
The Director is required to review agency management
practices based on the performance and results of its
information technology programs and investments. The Director
is required to issue clear and concise directions to ensure
that agencies have effective and efficient capital planning
processes that are used to select, control, and evaluate the
results of major information systems investments and to
ensure that agency information security is adequate.
The conferees agree that the Director's direction to
agencies regarding performance and results-based management
of information technology resources shall contain the
following: (1) that each executive agency and its major
subcomponents institute effective and efficient capital
planning processes for selecting, controlling, and evaluating
the results of all of its major information systems
investments; (2) that the agency maintain a current and
adequate information resources management plan, and to the
maximum extent practicable, specifically identify the method
for acquisition of information technology expected to improve
agency operations, and otherwise benefit the agency; (3) that
the agency provide for adequate integration of the agency's
information resources management plans, strategic plans
prepared pursuant to 5 U.S.C. 306, performance plans prepared
pursuant to 31 U.S.C. 1115, financial management plans
prepared pursuant to 31 U.S.C. 902(a)(5), and the agency
budgets for the acquisition and use of information technology
and other information resources. In addition, the conferees
agree that OMB shall provide the needed oversight, through
the budget process and other means, to ensure that executive
agencies assume responsibility, and effectively implement
suitable performance and results-based management practices.

Subtitle C--Executive Agencies

Responsibilities (sec. 5121)
The conference agreement includes a provision that would
require the head of each executive agency to comply with this
subtitle. The conferees anticipate that these provisions will
be reviewed upon reauthorization of the Paperwork Reduction
Act prior to September 30, 2001.
The conferees encourage the establishment and support of
independent technical review committees, composed of diverse
agency personnel (including users) and outside experts
selected by the agency head, to advise an agency head about
information systems programs.
Capital planning and investment control (sec. 5122)
The conference agreement includes a provision that would
require agencies to develop a process for furthering their
responsibilities under 44 U.S.C. 3506(h). The head of the
agency is required to design and develop a process for
maximizing the value and assessing and managing the risk of
the agency's information technology acquisitions.
Performance and results-based management (sec. 5123)
The conference agreement includes a provision that would
require agencies to establish goals for and report on the
progress of improving efficiency and effectiveness of agency
operations through use of information technology, as required
by 44 U.S.C. 3506(h). The head of an executive agency must
ensure that performance measures are established to support
evaluating the results and benefits of information technology
investments.
The conferees agree that, in fulfilling the
responsibilities under this section, agency heads should
ensure that: (1) before investing in information technology
to support a function, the agency determines whether that
function should be performed in the private sector or by an
agency of the federal government; (2) the agency adequately
provides for the integration of the agency's information
resources management plans, strategic plans prepared pursuant
to 5 U.S.C. 306, performance plans prepared pursuant to 31
U.S.C. 1115, financial management plans prepared pursuant to
31 U.S.C. 902(a)(5), and adequately prepares budgets for the
acquisition and use of information technology; (3) the agency
maintains a current and adequate information resources
management plan, and to the maximum extent practicable,
specifically identifies how acquired information technology
would improve agency operations and otherwise benefit the
agency; and (4) the agency invests in efficient and effective
interagency and government-wide information technology to
improve the accomplishment of common agency missions or
functions.
Acquisitions of information technology (sec. 5124)
The conference agreement includes a provision that would
authorize the head of an executive agency to acquire
information technology and, upon approval of the Director of
OMB, enter into multi-agency information technology
investments. The conferees intend that the requirements and
limitations of the Economy Act, and other provisions of law,
apply to these multiagency acquisitions. This section also
authorizes the General Services Administration (GSA) to
continue the management of the FTS-2000 program and
coordinate the follow-on effort to FTS-2000.
Agency chief information officer (sec. 5125)
The conference agreement includes a provision that would
amend the Paperwork Reduction Act of 1995 by replacing the
``senior information resources management official position''
established within each executive agency with an agency Chief
Information Officer (CIO). The agency CIO is responsible for
providing information and advice regarding information
technology and information resources management to the head
of the agency, and for ensuring that the management and
acquisition of agency information technology is implemented
consistent with the provisions of this law.
The conferees anticipate that agencies may establish CIOs
for major subcomponents or bureaus, and expect agency CIOs
will possess knowledge of, and practical experience in,
information and information technology management practices
of business or government entities. The conferees also intend
that deputy chief information officers be appointed by agency
heads that have additional experience in business process
analysis, software and information systems development,
design and management of information technology
architectures, data and telecommunications management at
government or business entities. The conferees intend that
CIOs, in agencies other than those listed in 31 U.S.C.
901(b), perform essentially the same duties as CIOs in
agencies listed in 31 U.S.C. 901(b).
The conferees expect that an agency's CIO will meet
periodically with other appropriate agency officials to
advise and coordinate the information technology and other
information resources management activities of the various
agencies.
Accountability (sec. 5126)
The conference agreement includes a provision that would
require the head of each agency, in consultation with agency
Chief Information Officers and Chief Financial Officers, to
ensure the integration of financial and information systems.
The conferees intend that the information resources
management plan, required under 44 U.S.C. 3506(b)(2), support
the performance of agency missions through the application of
information technology and other information resources, and
include the following: (1) a statement of goals to improve
the extent to which information resources contribute to
program productivity, efficiency, and effectiveness; (2) the
development of methods to measure progress toward achieving
the goals; (3) the establishment of clear roles,
responsibilities, and accountability to achieve the goals;
(4) a description of an agency's major existing and planned
information technology components (such as information
systems and telecommunications networks); (5) the
relationship among the information technology components, and
the information architecture; and (6) a summary of the
project's status and any changes in name, direction or scope,
quantifiable results achieved, and current maintenance
expenditures for each ongoing or completed major information
systems investment from the previous year. The conferees also
intend that agency heads will periodically evaluate and
improve the accuracy, security, completeness, and reliability
of information maintained by or for the agency.
Significant deviations (sec. 5127)
The conference agreement includes a provision that would
require agencies to identify in their information resources
management plans any major information technology acquisition
program, or phase or increment of such program, that has
significantly deviated from the established cost,
performance, or schedule baseline.
Interagency support (sec. 5128)
The conference agreement includes a provision that would
authorize the utilization of funds for interagency activities
in support of the Information Technology Reform Act.

Subtitle D--Other Responsibilities.

Responsibilities regarding efficiency, security, and privacy
of federal computer systems (sec. 5131)
The conference agreement includes a provision that would
set forth the authority for the Secretary of Commerce, in
consultation with the National Institute of Standards and
Technology, to promulgate standards to improve the operation,
security, and privacy of Federal information technology
systems.
Sense of Congress (sec. 5132)
The conference agreement includes a provision stating that
agencies, over the next

[[Page H736]]
five years, should achieve a five percent per year decrease in costs
incurred for operation and maintenance of information
technology, and a five percent increase in operational
efficiency through improvements in information resources
management.

Subtitle E--National Security Systems

The conference agreement includes a provision that would
exclude national security systems from provisions of this
Act, unless otherwise provided in this Act.

Title LII--Process for Acquisitions of Information Technology

Procurement procedures (sec. 5201)
The conference agreement includes a provision that would
direct the Federal Acquisition Regulatory Council to ensure,
to the maximum extent practicable, that the information
technology process is simplified, clear, and understandable.
The process should specifically address the management of
risk, incremental acquisitions, and the need to incorporate
commercial information technology in a timely manner.
The conferees agree that, in performing oversight of
information technology acquisitions, the Director of the
Office of Management and Budget, agency heads, and agency
inspectors general should emphasize program results and
established performance measurements, rather than reviews of
the acquisition process.
Incremental acquisition of information technology (sec. 5202)
The conference agreement includes a provision that would
provide for procedures in the Federal Acquisition Regulations
for the incremental acquisition of major information
technology systems by the Department of Defense and the
civilian executive agencies.

Title LIII--Information Technology Acquisition Pilot Programs

Subtitle A--Conduct of Pilot Programs

The conference agreement includes provisions that would
authorize the Administrator of Office of Federal Procurement
Policy, in consultation with the Administrator of Office of
Information and Regulatory Affairs, to: conduct pilot
programs to test alternative acquisition approaches for
information technology; conduct no more than two pilots, not
to exceed $750 million for a period not to exceed five years;
require agency heads to develop evaluation and test plans;
prepare and submit test plans to Congress prior to
implementation; report on results within 180 days after
completion; and make recommendations for legislation.

Subtitle B--Specific Pilot Programs

The conference agreement includes provisions that would
provide for two specific pilot programs, the share-in-savings
pilot program and the solutions-based contracting pilot
program.

Title LIV--Additional Information Resources Management Matters

On-line multiple award schedule contracting (sec. 5401)
The conference agreement includes a provision that would
require the Administrator of General Services to provide for
on-line access to multiple award schedules for information
technology. The system would provide basic information on
prices, features, and similar matters, allow for information
updates, enable comparison of product information, enable on-
line ordering and invoicing, permit on-line payment, and
archive order data. The provision would also authorize a
pilot program to test streamlined procedures for the
automated system. The conference agreement directs the
Administrator of General Services to incorporate its
information technology multiple award schedules into Federal
Acquisition Computer Network (FACNET) by January 1, 1998, and
would make the pilot program discretionary. The conferees
agree that the procedures established by the Administrator
for use of FACNET be consistent with the Federal Property and
Administrative Services Act requirements regarding the
multiple award schedule (41 U.S.C. 259(B)(3)). If the
Administrator determines it is not practicable to provide
such access through FACNET, the Administrator shall provide
such access through another automated system that has the
capability to perform the functions listed in subsection
259(b)(1) and meets the requirement of subsection 259(b)(2).
Disposal of excess computer equipment (sec. 5402)
The conference agreement includes a provision that would
require agencies to inventory all agency computer equipment
and to identify excess or surplus property. The conferees
direct that the Administrator of General Services, in
exercising current authority under title II of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C.
481 et seq.), donate federal surplus personal property to
public organizations. The conferees direct the Administrator
to prescribe regulations that establish a priority for the
donation of surplus computer equipment in the following
sequence: (1) elementary and secondary schools, and schools
funded by the Bureau of Indian Affairs; (2) public libraries;
(3) public colleges and universities; and (4) other entities
eligible for donation of federal surplus personal property
under title II of that Act.
Access of certain information in information systems to the
directory established under section 4101 of title 44,
United States Code (sec. 5403)
The conference agreement includes a provision that would
ensure that, for agency information systems that disseminate
information to the public, an index of information is
included in the Government Printing Office (GPO) directory
established under 44 U.S.C. 4101.
In 1993, Congress directed the GPO to create an online
directory, of federal public information in electronic form
(Public Law 103-40). Today, that system is accessible to the
general public directly and through the Federal Depository
Libraries. Yet, in the two years since enactment of the GPO
access bill, technology has moved forward dramatically in its
ability to support location and search of the physically-
distributed, locally-maintained databases. Congress
recognized this shift in the Paperwork Reduction Act of 1995
(Public Law 104-13). That Act requires Federal agencies to
ensure access to agency public information by ``encouraging a
diversity of public and private sources''. It also directs
the Office of Management and Budget to establish a
distributed, electronic, agency-based Government Information
Locator Service (GILS) to identify the major information
dissemination products of each agency. As the Senate report
noted (S. Rept. 104-112), GILS: ``* * * will provide multiple
avenues for public access to government information by
pointing to specific agency information holdings. To make
this possible, agencies' systems must be compatible. Thus,
agency GILS information should be available to the public
through the Government Printing Office Locator System
(established pursuant to Public Law 103-40) in addition to
any other required methods, agencies may choose to
efficiently and effectively provide public and agency access
to GILS.''
Section 5403 further clarifies the intent of Congress to
ensure the widest possible access to Federal public
information through a diversity of compatible sources.

Title LV--Procurement Protest Authority of the Comptroller General

The conference agreement includes a provision that would
require the Comptroller General to issue a decision relating
to a bid protest within 100 days.

Title LVI--Conforming and Clerical Amendments

The conference agreement includes a series of clarifying
and technical changes to acquisition statutes throughout the
United States Code.

Title LVII--Effective Date, Savings Provisions, and Rule of
Construction

Effective date (sec. 5701)
The conference agreement includes a provision that would
provide for this division and the amendments made by this
division to take effect 180 days after the date of the
enactment of this Act.
Savings provisions (sec. 5702)
The conference agreement includes a provision that would
allow selected information technology actions and acquisition
proceedings, including claims or applications, that have been
initiated by, or are pending before, Administrator of the
General Services or the General Services Administration Board
of Contract Appeals to be continued under original terms,
until terminated, revoked, or superseded in accordance with
law, by the Director of OMB, by a court, or by operation of
law. The Director of OMB is authorized to establish
regulations for transferring such actions and proceedings.
Floyd Spence,
Bob Stump,
Duncan Hunter,
Herbert H. Bateman,
Curt Weldon,
G.V. Montgomery,
John M. Spratt, Jr.,
Managers on the Part of the House.

Strom Thurmond,
John Warner,
Bill Cohen,
Trent Lott,
Sam Nunn,
Managers on the Part of the Senate.

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